Transfer of contracts

Source Credit

(a) Transfer of contracts
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) Nontransferable power contracts
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) Effect of transfer
(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) Pricing
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.

History

(Pub. L. 104–134, title III, §3108, Apr. 26, 1996, 110 Stat. 1321–339.)

Editorial Notes

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.