PRIA, Government Policy, Made Personal

Summary

At privatization, the Corporation must give the private corporation all of its contracts, agreements, and leases (including uranium enrichment contracts) that the Secretary had earlier moved to the Corporation under section 2297c(b) or that the Corporation signed before the privatization date. The Corporation must also give the private corporation the right to buy power from the Secretary under the power purchase contracts for the gaseous diffusion plants that the Secretary signed before July 1, 1993. The Secretary will keep getting that power and will sell it to the private corporation at cost while those contracts run. Even after the transfers, the United States stays responsible to the other parties for fulfilling those contracts during their terms. If the private corporation performs a contract, that counts as U.S. performance. If a transferred contract is ended, extended, or materially changed after privatization, the private corporation is responsible for obligations after the change and the United States is responsible for obligations from before the change. If the United States pays a settlement or judgment (with the private corporation’s consent) that comes from the private corporation’s actions between privatization and the contract change, the private corporation must repay the United States. The Corporation may set prices to try to earn normal business profits.

Title 42, §2297h–6

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Concurrent with privatization, the Corporation shall transfer to the private corporation all contracts, agreements, and leases, including all uranium enrichment contracts, that were—

(1)transferred by the Secretary to the Corporation pursuant to section 2297c(b) of this title, or

(2)entered into by the Corporation before the privatization date.

(b)The Corporation shall transfer to the private corporation the right to purchase power from the Secretary under the power purchase contracts for the gaseous diffusion plants executed by the Secretary before July 1, 1993. The Secretary shall continue to receive power for the gaseous diffusion plants under such contracts and shall continue to resell such power to the private corporation at cost during the term of such contracts.

(c)(1)Notwithstanding subsection (a), the United States shall remain obligated to the parties to the contracts, agreements, and leases transferred under subsection (a) for the performance of its obligations under such contracts, agreements, or leases during their terms. Performance of such obligations by the private corporation shall be considered performance by the United States.

(2)If a contract, agreement, or lease transferred under subsection (a) is terminated, extended, or materially amended after the privatization date—

(A)the private corporation shall be responsible for any obligation arising under such contract, agreement, or lease after any extension or material amendment, and

(B)the United States shall be responsible for any obligation arising under the contract, agreement, or lease before the termination, extension, or material amendment.

(3)The private corporation shall reimburse the United States for any amount paid by the United States under a settlement agreement entered into with the consent of the private corporation or under a judgment, if the settlement or judgment—

(A)arises out of an obligation under a contract, agreement, or lease transferred under subsection (a), and

(B)arises out of actions of the private corporation between the privatization date and the date of a termination, extension, or material amendment of such contract, agreement, or lease.

(d)The Corporation may establish prices for its products, materials, and services provided to customers on a basis that will allow it to attain the normal business objectives of a profit making corporation.

Editorial Notes

Codification Section was enacted as part of the USEC Privatization Act and also as part of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, and not as part of the Atomic Energy Act of 1954 which comprises this chapter.

§2297h–6 Transfer of Contracts

Summary

Title 42, §2297h–6

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata