5 1 (5) The term "hard mineral" or "hard mineral re 2 sources" refers to nodules or accretions containing, but not 3 limited to, manganese, nickel, cobalt, or copper. 4 (6) The term "development" means any operation of -5 exploration and commercial recovery, other than prospecting. 6 (7) The term “prospecting" means any operation con7 ducted for the purpose of making geophysical or geochemical 8 measurements, bottom sampling, or comparable activities so 9 long as such operation is carried on in a manner that does 10 not significantly alter the surface or subsurface of the deep 11 seabed. 12 (8) The term "exploration" means the onside observa13 tion and evaluation activity (subsequent to prospecting) 14 which has, as its objective, the establishment and documenta15 tion of the nature, shape, concentration, and tenor of an ore 16 deposit, and the nature of the environmental factors which 17 will affect its susceptibility of being developed, including the 18 sampling of the deposit necessary for the design, fabrication, 19 installation, and testing of equipment. 20 (9) The term "commercial recovery" means recovery 21 of hard minerals at a substantial rate of production (with22 out regard to profit or loss), for the primary purpose of mar23 keting or commercial use and does not include recovery for 24 sampling, experimenting in recovery methods, or testing 6 1 equipment or plant for recovery or treatment of hard 2. minerals. 3 (10) The term "person" includes private individuals, 4 associations, corporations, or other entities, and any officer, 5 employee, agent, department, agency, or instrumentality 6 of the Federal Government, of any State or local unit of 7 government, or of any foreign government. 8' (11) The term "investment" means an expenditure of 9 funds, together with the reasonable interest costs thereof, 10 utilized for the development of a licensed block or the processing of the hard minerals recovered from such a block. 11 12 (12) The term "reciprocating state" means any foreign 13 state, designated by the President as a state with require14 ments and procedures comparable to those of the United 15 States under this Act, and which has undertaken to recog16 nize licenses issued under this Act. 17 (13) The term "international registry clearinghouse" 18 means a recording agency or organization designated by the 19 President in cooperation with reciprocating states. 20 21 ACTIVITIES PROHIBITED SEC. 4. (a) No person subject to the jurisdiction of the 22 United States shall engage directly or indirectly in the ex23 ploration for, or the commercial recovery of, hard mineral 24 resources of the deep seabed, except 1 2 3 4 5 6 7 8 9 to 10 11 12 13 14 15 16 17 18 Act, 7 (1) as authorized pursuant to the provisions of this (2) as authorized under a license issued by a recip rocating state, or (3) as may be authorized under an international agreement, which is ratified by and becomes binding upon the United States. (b) The prohibitions of subsection (a) do not apply (1) equipment design, construction, or testing; prospecting; or scientific research; (2) the rendering of contractual engineering, construction, or other services, not amounting to exploration or commercial recovery; or (3) the furnishing of machinery, products, supplies, or materials to any person lawfully engaged in the development of hard mineral resources of the seabed. (c) In any case in which a person subject to the juris19 diction of the United States is engaged in the exploration 20 of a block on the date on which this Act takes effect, such 21 person may establish his priority of right by filing an appli22 cation for a license to develop that block and, after filing 23 such an application, may continue his exploration activities 24 until such time as the Secretary acts upon his application, 8 1 his subsequent rights to be determined by the action of the 2 Secretary on the application. If more than one such appli3 cation is filed, for the same block or portion thereof, the 4. Secretary shall make his determination, using principals of 5 equity, based upon the date which each applicant com6 menced exploration activities and the amount of investment 7. (with respect to such activities) made by each applicant. in 8 the overlapping area. 9 10 LICENSES SEC. 5. (a) GENERAL.-Pursuant to the provisions of 11 this Act, the Secretary shall accept applications from, and 12 issue licenses to, any person subject to the jurisdiction of the ་ 13 United States for the development of hard mineral resources 14 of the deep seabed. Subject to section 4 (c), any license 15 issued pursuant to this section shall be issued in a timely 16 manner to the first applicant who makes written application 17. therefor, tenders a fee prescribed by the Secretary in regula18tions issued pursuant to section 16, and meets the eligibility 19 requirements set forth in this Act, and the regulations issued 20 in implementation thereof. Such fee shall be deposited into an appropriate fund to be established in the Department of 22 the Treasury, which fund shall be utilized for administrative 23 and other costs incurred in the processing of applications for 24 licenses under this Act. The fund shall be available for such 21 25 25 purposes only as appropriated to the Secretary annually 9 1 therefor. Before he may issue a license, the Secretary must 2 first determine, in the consideration of each license 3 application 4 5 6 7 8 9 10 11 12 234 13 14 15 16 17 18 19 20 (1) that the applicant is financially responsible; (2) that the activities under the license will not unreasonably interfere with the rights of other states or persons in their exercise of the freedoms of the high seas, as recognized under the general principles of international law; (3) that the issuance of a license does not conflict with any international obligation of the United States, established by any treaty or convention which is ratified by and becomes binding upon the United States; (4) that activities under the license will not pose an unreasonable threat to the integrity of the marine environment and will be conducted in accordance with environmental standards delineated in regulations promulgated pursuant to section 16; (5) that minerals recovered under authority of the license, to the extent of the proportionate interest therein of all United States entities, will be processed in the United States, or on board United States vessels. (b) NATURE AND DURATION OF LICENSE.—(1) The 24 issuance of any license, pursuant to the provisions of this 25 Act, shall be a "major Federal action" as that term is used |