Ethics Advisory 98-02 -- USGS Financial Guide #18, June 30, 1998 Date: Wed, 24 Jun 1998 13:33:59 -0400 To: "USGS Employees" From: "Virginia G. Miles" Subject: Ethics Advisory 98-02 -- USGS Financial Guide #18, June 30, 1998 Ethics Advisory Memorandum 98-02 June 24, 1998 Memorandum To: All Employees, U.S. Geological Survey From: Deputy USGS Ethics Counselor, Office of Personnel Subject: Ethics Advisory 98-02 -- USGS Financial Guide #18, June 30, 1998 All employees of the USGS are reminded that they are subject to certain prohibitions and limitations on the ownership of stocks and bonds in entities engaged in oil, gas, and mining activities in the United States. Some holdings are totally prohibited to all employees, and others are subject to dollar limitations on the value of shares that may be held, depending on the particular division in which the employee resides. Information on the regulations that apply and a listing of companies that are subject to these restrictions are provided in the 1998 USGS Financial Guide #18. The latest annual USGS Financial Guide #18 has been significantly revised from the 1997 Guide to include a full description of the policies and regulations that apply to the ownership of financial interests held by USGS employees. The information in this guide supercedes the financial guidance provided in the USGS Employee Conduct Handbook (1993). Guidance is based on the latest Supplemental Standards of Ethical Conduct for Employees of the Department of the Interior that became effective October 16, 1997. The new Financial Guide #18 is available for review on the Human Resources Homepage @ http://www.usgs.gov:8888/ops/hro/ethics/financ18.html Any employee who owns stocks, bonds, mutual funds, pension plans, employee stock ownership plans, IRAs, 401(k) plans, mineral royalties, limited partnerships; who is a trustee or beneficiary of a trust; who receives assets through inheritance or gift; or whose spouse or minor child holds such assets should review the guidelines to ensure themselves that they are not in conflict with the USGS Organic Act or USGS Policy because of their financial holdings. The listing of corporations subject to the prohibitions or limitations has changed significantly during the past year due to numerous name changes, mergers, spinoffs, and acquisitions that occur almost continuously. In fact, about 33% of the listed corporations have had some kind of change during the past year. Therefore, employees who have reviewed their holdings against previous financial guides should review the current guide to ensure that their holdings are still acceptable. Additionally, employees may have financial assets in other business sectors that subject them to the conflict of interest regulations. For example, employees who purchase computer hardware or contract for computer systems software should not own stock in companies that may engage in these procurement actions. Employees are responsible for ensuring that they take necessary action when changes in their stock holdings, changes to the list of prohibited or limited corporations, or changes in their official responsibilities may subject them to divestiture requirements. Employees subject to financial disclosure requirements should review their holdings now to ensure compliance. If upon review of the Financial Guide, you believe that you may hold absolutely prohibited assets, limited assets, or other assets that create a conflict of interest for you, you should immediately contact the Deputy USGS Ethics Counselor to discuss divestiture of the asset or other options for resolving the conflict. You may be able to obtain temporary Federal tax relief if you will realize significant capital gains from a forced sale of stock. You must request tax relief from the Office of Government Ethics no later than 90 days after the asset becomes a conflict of interest for you. The 90 days begins when the asset is newly placed on the list of stocks in the Financial Guide, when a merger or acquisition subjects a previously acceptable stock to the prohibited or limited list, or when another action creates a conflict of interest. The 90 days may also come into effect when the value of your shares exceeds the $5000 limitation permitted for oil, gas, mining on private lands or you are reassigned to a position with different value limitations; e.g., an employee of the Water Resources Division moves to the Geologic Division. Advice and guidance concerning all financial interests can be obtained from the Deputy USGS Ethics Counselor, Virginia G. Miles, at phone: 703/648-7474; E-mail: vmiles@usgs.gov ; or regular mail: USGS, Mail Stop 603, National Center, Reston, Virginia 20192. If you need a printed copy of Financial Guide #18, you may request a paper copy by providing your mailing address to the Ethics Counselor. An electronic copy of the document may also be requested if you are able to receive WordPerfect attachments through your E-mail system.