15 THEY ARE READY. EACH YEAR THEY WAIT FOR AUTHORIZATION TO ENGAGE IN COMMERCIAL RECOVERY DELAYS SUCH RECOVERY FOR AN ADDITIONAL YEAR. THE LONGER THEY ARE ASKED TO WAIT, THE MORE LIKELY THEY ARE TO LOSE THEIR TECHNOLOGICAL LEAD TO OTHER NATIONS. AS THAT DANGER GROWS, FREE MARKETING ECONOMICS DICTATE THAT THE PROBABILITY OF SELLING OCEAN MINING TECHNOLOGY TO FOREIGN NATIONS WILL INCREASE. THIS WE MUST AVOID THIS WE CAN AVOID BY PASSING STRONG LEGISLA - TION WHICH CONTAINS THE OPPORTUNITY FOR A COMMERCIAL RECOVERY PER MR. CHAIRMAN, I WOULD LIKE TO CLOSE BY NOTING THE PREMISES ON WHICH H.R. 3350 IS BUILT AND THE GOALS IT IS DESIGNED TO ACHIEVE. THE TECHNOLOGICAL FEASIBILITY OF DEEP SEABED MINING IS NOT A MATTER OF DISPUTE. NOR, IN MY JUDGEMENT, IS THE ISSUE OF WHETHER SUCH MINING IS IN OUR NATIONAL INTEREST. IT SEEMS TO ME THAT WE ARE ENTERING A DIPLOMATIC PHASE IN WHICH INTERNATIONAL NEGOTIATIONS ARE BEING TEMPERED BY WHAT I CALL THE "POLITICS OF A SECURITY OF SUPPLY." AS EACH NATION MOVES TO BECOME EXPORTERS - RATHER THAN IMPORTERS - OF THE WORLD'S ESSEN TIAL RESOURCES, THE INTERNATIONAL ARENA WILL TAKE ON A NEW AND UNCERTAIN DIMENSION. UNTIL AND UNLESS THIS UNCERTAINTY IS CLARIFIED, WE MUST NOT ALLOW OUR NATION TO BE PLACED IN A POSITION OF WEAKNESS WITH RESPECT TO THE INTERNATIONAL COMMUNITY. 16 IF THE UNITED STATES IS NOT PREPARED TO FACE THIS REALITY, OUR NATIONAL INTEREST WILL BE SEVERELY DAMAGED. BUT, IF WE PASS STRONG LEGISLATION IN THIS AREA: --WE WILL ESTABLISH A RATIONAL LEGAL FRAMEWORK WITHIN WHICH THE MINING INDUSTRY CAN OBTAIN --WE WILL STRUCTURE A REGULATORY SYSTEM IN WHICH THE GOVERNMENT CAN EXERCISE PROPER ADMINISTRA TIVE AND ENVIRONMENTAL CONTROL; --WE WILL CREATE A FAVORABLE CLIMATE FOR GOOD FAITH NEGOTIATIONS AT THE LAW OF THE SEA CON FERENCE; --WE WILL ASSIST OUR AMERICAN DELEGATION IN FASH- --WE WILL PROTECT OUR NATIONAL INTEREST DURING THE IS NEGOTIATED AND, FOR THE LONG-TERM FUTURE, IF A SATISFACTORY TREATY IS NOT ACHIEVED. I URGE YOUR EXPEDITIOUS CONSIDERATION OF THIS IMPORTANT AND COMPLEX ISSUE AND YOUR SUPPORT FOR THE ONLY LEGISLATION WHICH WILL SUMMARY OF H.R. 3350 A BILL TO PROMOTE THE ORDERLY DEVELOPMENT INTRODUCED BY MR. MURPHY (NEW YORK) THE BILL ESTABLISHES A LICENSING AND REGULATORY SYSTEM, APPLICABLE TO UNITED STATES INDIVIDUALS AND BUSINESS ENTITIES, TO PROMOTE THE ORDERLY DEVELOPMENT OF DEEP SEABED HARD MINERALS, FOUND IN THE MANGANESE NODULES LOCATED ON THE SEABED BEYOND THE RESOURCE JURISDICTION OF ANY NATION. THE BILL ESTABLISHES LICENSING PROCEDURES TO BE ADMINISTERED BY THE SECRETARY OF COMMERCE AND PROVIDES FOR THE ISSUANCE OF LICENSES FOR EXPLORATION AND COMMERCIAL RECOVERY OF THE MINERALS. NO COMMERCIAL RECOVERY MAY BE AUTHORIZED PRIOR TO JANUARY 1, 1978, AND, AFTER THAT DATE, NO COMMERCIAL RECOVERY MAY BE UNDERTAKEN UNDER A LICENSE EXCEPT AFTER A SPECIFIC PERMIT FOR THAT COMMERCIAL RECOVERY IS GRANTED. ELIGIBLE APPLICANTS ARE ENTITLED TO A LICENSE FROM THE SECRETARY UPON MEETING CERTAIN REQUIREMENTS AND TENDERING A LICENSE FEE TO RE PRESCRIBED BY THE SECRETARY IN HIS REGULATIONS. THE FEE MAY BE NO MORE THAN $100,000, AND SHALL REFLECT THE ADMINISTRATIVE COSTS OF PROCESSING THE LICENSE APPLICATION. THE SECRETARY IS REQUIRED TO ESTABLISH ENVIRONMENTAL CRITERIA AND STANDARDS UNDER WHICH LICENSE OPERATIONS SHALL BE CONDUCTED, AND THE ISSUANCE OF THE LICENSE IS DESIGNATED AS A MAJOR FEDERAL ACTION, AS THAT TERM IS USED IN THE NATIONAL ENVIRONMENTAL POLICY ACT, AND THE ATTENDANT REQUIREMENTS OF THAT ACT RELATING TO ENVIRONMENTAL IMPACT STATEMENTS ARE APPLICABLE. THE PUBLIC IS GUARANTEED ACCESS TO CERTAIN INFORMATION FURNISHED BY THE APPLICANT, SO THAT IT MAY EVALUATE AND COMMENT UPON APPLICATIONS. DURING THE EXPLORATION ACTIVITIES UNDER A LICENSE, CERTAIN MINIMUM EXPENDITURES ARE REQUIRED OF THE APPLICANT, AND AT THE TIME THAT A PERMIT FOR COMMERCIAL RECOVERY IS ISSUED, THE LICENSEE MUST RELINQUISH A DESIGNATED PART OF THE LICENSED BLOCK. PRIOR TO THE ISSUANCE OF THE PERMIT FOR COMMERICAL RECOVERY, THE SECRETARY IS REQUIRED TO REVIEW THE PREVIOUS ENVIRONMENTAL IMPACT STATEMENT AND TO REFINE IT AND BRING IT UP TO DATE IN RELATION TO PROSPECTIVE COMMERCIAL RECOVERY ACTIVITIES. IN THIS REGARD, ANY STATE IN WHICH A PART OF THE COMMERCIAL RECOVERY ACTIVITIES IS LOCATED, SPECIFICALLY THE PROCESSING ACTIVITIES, WILL BE INVOLVED, PURSUANT TO THE PROVISIONS OF THE COASTAL ZONE MANAGEMENT ACT. 2 IF AND WHEN AN INTERNATIONAL REGIME IS AGREED UPON, WHICH IS RATIFIED BY AND BECOMES BINDING UPON THE UNITED STATES, NO FURTHER LICENSES WILL BE ISSUED UNDER THE ACT, AND TO THE EXTENT THAT THE INTERNATIONAL REGIME PERMITS IT, THE UNITED STATES IS REQUIRED TO SPONSOR APPLICATIONS FROM LICENSEES UNDER THIS ACT FOR LICENSES UNDER THE INTERNATIONAL REGIME. IN ADDITION, SHOULD THE INTERNATIONAL REGIME DIFFER FROM THE PROVISIONS OF THIS ACT SO THAT A LICENSEE SUFFERS A MEASURABLE LOSS OF INVESTMENT, THAT LICENSEE IS ENTITLED TO COMPENSATION FROM THE UNITED STATES FOR THE LOSS. THE COMPENSATION IS TO BE LIMITED TO ACTUAL EQUIPMENT AND FACILITIES UTILIZED FOR EXPLORATION PURPOSES AT A LICENSED BLOCK AND, AFTER A PERMIT FOR COMMERCIAL RECOVERY HAS BEEN ISSUED, SHALL ALSO INCLUDE LOSS OF INVESTMENT IN EQUIPMENT AND FACILITIES UTILIZED FOR COMMERCIAL RECOVERY AND PROCESSING. RESEARCH AND EVALUATION COSTS OF TECHNOLOGY ARE NOT COMPENSABLE. THE AMOUNT OF COMPENSATION WILL BE DETERMINED IN JUDICIAL PROCEEDINGS IN THE APPROPRIATE UNITED STATES DISTRICT COURT. THE MINERALS RECOVERED FROM THE DEEP SEABED ARE TO BE TREATED UNDER EXPORT CONTROL LAWS, CUSTOMS LAWS, TAX LAWS AND TRADE LAWS OF THE UNITED STATES AS IF THEY HAD BEEN RECOVERED IN THE UNITED STATES. THEREFORE, FOR INSTANCE, IF EXPORT LICENSES ARE REQUIRED FOR SIMILAR MINERALS RECOVERED WITHIN THE UNITED STATES, THEY WILL ALSO BE REQUIRED FOR THOSE RECOVERED UNDER A LICENSE ISSUED PURSUANT TO THIS ACT. IN CONNECTION WITH SHIPPING LAWS, RELATING TO THE DOCUMENTATION AND PRIVILEGES OF VESSELS, ALL VESSELS ENGAGED IN DEVELOPMENT ACTIVITIES AT A LICENSED BLOCK AND ON VESSELS ENGAGED IN THE TRANSPORTATION OF MINERALS TO OR FROM THE LICENSED BLOCK AND A POINT IN THE UNITED STATES SHALL BE CONSIDERED TO BE ENGAGED IN COASTWISE TRADE. SUCH TRADE IS RESTRICTED TO VESSELS OF THE UNITED STATES. THE MINERALS, RECOVERED UNDER THE AUTHORITY OF THE LICENSE, WILL BE PROCESSED IN THE UNITED STATES, OR ON BOARD U.S. VESSELS. THE BILL ALSO RECOGNIZES THE POSSIBILITY OF "RECIPROCATING STATES", AS DESIGNATED BY THE PRESIDENT. THESE WOULD INCLUDE STATES WITH LAWS SIMILAR TO THE PROVISIONS OF THIS ACT AND WILLING TO RECOGNIZE, ON A MUTUAL BASIS, LICENSES ISSUED UNDER THIS ACT, AND UNDER THE LAWS OF THE RECIPROCATING STATE. THE RILL ALSO RECOGNIZES THE EXISTENCE OF CONSORTIUM ARRANGEMENTS. WHERE ANY SUCH CONSORTIUM, INVOLVING A UNITED STATES ENTITY, QUALIFIES AS A LICENSEE UNDER THIS ACT, PROVISIONS OF THE ACT RELATING TO COMPENSATION FOR LOSS OF INVESTMENT AND TO THE APPLICABILITY OF UNITED STATES EXPORT, CUSTOMS, TAX AND TRADE LAWS WILL BE LIMITED TO THAT PROPORTION OF THE CONSORTIUM OWNED BY THE UNITED STATES ENTITY OR ENTITIES. THE BILL PROVIDES FOR BOTH CIVIL AND CRIMINAL PENALTIES, ASSESSED ON A CONTINUING BASIS, FOR VIOLATIONS OF THE ACT OR RULES OR REGULATIONS ISSUED BY THE SECRETARY IN IMPLEMENTATION THEREOF. 3 NO PERSON SUBJECT TO THE JURISDICTION OF THE UNITED STATES MAY ENGAGE DIRECTLY OR INDIRECTLY IN THE EXPLORATION FOR, OR COMMERCIAL RECOVERY OF, HARD MINERAL RESOURCES OF THE DEEP SEABED EXCEPT PURSUANT TO THE ACT, PURSUANT TO A LICENSE ISSUED BY A RECIPROCATING STATE, OR PURSUANT TO THE PROVISIONS OF AN INTERNATIONAL AGREEMENT WHICH BECOMES BINDING UPON THE UNITED STATES. |