The Department of Energy is aware of the proposed merger of your parent corporation, Santa Fe International, and the Kuwait Petroleum Corporation (KPC). It is our understanding that the merger may be approved by the Santa Fe Stockholders early in December 1981. In the performance of contracts for DOE and its predecessor agencies, the Energy Research and Development Administration (ERDA) and the Atomic Energy Commission (AEC), C. F. Braun through its employees was provided access to and developed sensitive information and data. Furthermore, C. F. Braun through some of its employees was provided with access to information classified under the Atomic Energy Act of 1954 and pertinent executive orders. C. F. Braun employees have received security clearances to permit their access to facilities and to classified information on a "need to know" basis. Consistent with our longstanding procedures, DOE would like to ensure that the proposed merger not compromise the security of classified information and other sensitive nuclear technology acquired by Braun employees in the performance of the Braun contracts with DOE and its predecessor agencies. Therefore, we wish to be assured that this information and data will be safeguarded in accordance with the security and other requirements of our contracts, regulations, and the Atomic Energy Act of 1954, as amended. In addition to the statutory, regulatory, and contractual provisions pertaining to classified information, we invite your attention to the DOE regulations pertaining to unclassified nuclear activities, 10 CFR Part 810. These regulations implement the provisions of Section 57b of the Atomic Energy Act, and require that certain unclassified sensitive nuclear technology and assistance can be provided to foreign nationals only if specifically authorized by the Secretary of Energy. Staff representatives of my office will be visiting your facility at Alhambra, California, to review the existing procedures for protecting classified and sensitive data to ensure consistency with existing DOE policy. Additionally, we would appreciate confirmation that neither C. F. Braun nor any subsidiary of C. F. Braun has furnished classified or sensitive data to the Santa Fe International Corporation. If unclassified sensitive nuclear data has been provided to Santa Fe, the prescription of Section 57b of the Atomic Energy Act would also be applicable to Santa Fe International. Following their report, I would also like to meet with you as soon thereafter as possible to discuss appropriate insulating procedures such as those we have employed in the past like establishing a voting trust agreement to protect against the transfer of information controlled by statute and DOE regulations. Such insulating procedures may be necessary for Braun to retain its facility clearance from DOE. Over the years, we have had an excellent working relationship with C. F. Braun; and we look forward to your cooperation in this matter. Sincerely, Original Signed By Herman E. Roser for Defense Programs |