§ 1506.207 - Prohibited financial interests.

(a) No employee shall have a financial interest that conflicts substantially, or appears to conflict substantially, with his or her Government duties and responsibilities.

(b) As applied, paragraph (a) of this section requires that no employee shall own securities of any company (or its parent or affiliate):

(1) Which initially owns and produces gas to be transported through the Alaska Natural Gas Transportation System (the system);

(2) Which “first purchases” gas to be transported through the system;

(3) Which is involved in the ownership of the system; or

(4) Which is very substantially involved by contract in the construction or design of the system.

(c) A list of the companies whose securities are prohibited under the criteria of paragraph (b) of this section shall be issued to each employee upon entrance on duty. A list of these companies shall be distributed to all employees annually and whenever change in circumstances requires modification of the list.

(d) In addition to the specific companies (meeting the criteria in paragraph (b) of this section and listed according to paragraph (c) of this section), there are other categories of companies to which the prohibition in paragraph (a) of this section may or may not apply. Employees should consider the following factors:

(1) Ownership of the securities of other oil and gas companies is not at present prohibited. Employees are advised, however, that, if such other companies become involved in either the system or ownership of gas to be transported through the system, ownership of the securities of those companies will, at that time, become prohibited.

(2) As a general rule, the securities of those companies supplying goods or services for the planning or construction of the system are not prohibited from ownership by employees. Nevertheless, certain of those companies could supply such a large share of goods or services for the system that employees also may not own their securities.

(3) Employees shall not own the securities of companies described in this paragraph only if and when a specific company is included in the prohibited securities list provided in accordance with paragraph (c) of this section.

(e) If employees have any questions or doubts regarding the ownership of securities, they should contact the ethics officer for advice.

(f) An employee may seek a waiver of the prohibitions imposed by paragraphs (a) and (b) of this section for a particular financial interest. In order to obtain such a waiver, an employee must fully disclose his financial interest to the ethics officer and to the Federal Inspector. If the ethics officer and the Federal Inspector determine that the disclosed financial interest is not so substantial as to be likely to affect the integrity of the employee's Government services, they may grant a waiver.

(g) The prohibitions of paragraphs (a) and (b) of this section do not apply to mutual funds (unless investing primarily in oil and gas securities) and investments in mutual savings banks. Further, if an employee has continued to participate in a bona fide pension, retirement, group life, health, or accident insurance plan or other employee welfare or benefit plan that is maintained by a business or nonprofit organization or which he is a former employee, that financial interest is exempted from the prohibitions of paragraphs (a) and (b) of this section, except when the welfare or benefit plan is a profit-sharing or stock-bonus plan.