---
kind: "section"
citation: "42 U.S.C. § 2297h–6"
title: "42"
title_heading: "The Public Health and Welfare"
number: "2297h–6"
heading: "Transfer of contracts"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/2297h-6"
units:
  - "Chapter 23 — Development and Control of Atomic Energy"
  - "Division B — United States Enrichment Corporation"
  - "Subchapter VIII — United States Enrichment Corporation Privatization"
---

# §2297h–6. Transfer of contracts

- (a) **Transfer of contracts—** Concurrent with [privatization](/usc/42/2297h.md?p=8), the [Corporation](/usc/42/2296b–7.md?p=1) shall transfer to the [private corporation](/usc/42/2297h.md?p=7) all contracts, agreements, and leases, including all [uranium enrichment](/usc/42/2297h.md?p=14) contracts, that were—
  - (1) transferred by the [Secretary](/usc/42/242q–4.md?p=2) to the [Corporation](/usc/42/2296b–7.md?p=1) pursuant to [section 2297c(b) of this title](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s2297c/b)), or
  - (2) entered into by the [Corporation](/usc/42/2296b–7.md?p=1) before the [privatization date](/usc/42/2297h.md?p=9).
- (b) **Nontransferable power contracts—** The [Corporation](/usc/42/2296b–7.md?p=1) shall transfer to the [private corporation](/usc/42/2297h.md?p=7) the right to purchase power from the [Secretary](/usc/42/242q–4.md?p=2) under the power purchase contracts for the [gaseous diffusion plants](/usc/42/2297h.md?p=3) executed by the [Secretary](/usc/42/242q–4.md?p=2) before July 1, 1993. The [Secretary](/usc/42/242q–4.md?p=2) shall continue to receive power for the [gaseous diffusion plants](/usc/42/2297h.md?p=3) under such contracts and shall continue to resell such power to the [private corporation](/usc/42/2297h.md?p=7) at cost during the term of such contracts.
- (c) **Effect of transfer—**
  - (1) Notwithstanding [subsection (a)](#a), the [United States](/usc/42/2014.md?p=bb) shall remain obligated to the parties to the contracts, agreements, and leases transferred under [subsection (a)](#a) for the performance of its obligations under such contracts, agreements, or leases during their terms. Performance of such obligations by the [private corporation](/usc/42/2297h.md?p=7) shall be considered performance by the [United States](/usc/42/2014.md?p=bb).
  - (2) If a contract, agreement, or lease transferred under [subsection (a)](#a) is terminated, extended, or materially amended after the [privatization date](/usc/42/2297h.md?p=9)—
    - (A) the [private corporation](/usc/42/2297h.md?p=7) shall be responsible for any obligation arising under such contract, agreement, or lease after any extension or material amendment, and
    - (B) the [United States](/usc/42/2014.md?p=bb) shall be responsible for any obligation arising under the contract, agreement, or lease before the termination, extension, or material amendment.
  - (3) The [private corporation](/usc/42/2297h.md?p=7) shall reimburse the [United States](/usc/42/2014.md?p=bb) for any amount paid by the [United States](/usc/42/2014.md?p=bb) under a settlement agreement entered into with the consent of the [private corporation](/usc/42/2297h.md?p=7) 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)](#a), and
    - (B) arises out of actions of the [private corporation](/usc/42/2297h.md?p=7) between the [privatization date](/usc/42/2297h.md?p=9) and the date of a termination, extension, or material amendment of such contract, agreement, or lease.
- (d) **Pricing—** The [Corporation](/usc/42/2296b–7.md?p=1) may establish prices for its products, materials, and services provided to [customers](/usc/42/7275.md?p=5) on a basis that will allow it to attain the normal business objectives of a profit making [corporation](/usc/42/2296b–7.md?p=1).

## Source credit

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

## 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.