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equivalent authorization which has been issued, or for which formal notice of application has been submitted, by a reciprocating state prior to the filing date of any relevant application for licenses or permits pursuant to this title;

(C) a permit authorizing commercial recovery within any area of the deep seabed in which exploration is authorized under a valid existing license if such permit is issued to other than the licensee for such area;

(D) any exploration license before July 1, 1981, or any permit which authorizes commercial recovery to commence before January 1, 1983;

(E) any license or permit the exploration plan or recovery plan for which applies to any area of the deep seabed if, within the 3-year period before the date of application for such license or permit, (i) the applicant therefor surrendered or relinquished such area under an exploration plan or recovery plan associated with a previous license or permit issued to such applicant, or (ii) a license or permit previously issued to the applicant had an exploration plan or recovery plan which applied to such area and such license or permit was revoked under section 106; or

(F) a license or permit, or approve the transfer of a license or permit, except to a United States citizen.

(2) No permittee may use any vessel for the commercial recovery of hard mineral resources or for the processing at sea at hard mineral resources recovered under the permit issued to the permittee unless the vessel is documented under the laws of the United States.

(3) Each permittee shall use at least one vessel documented under the laws of the United States for the transportation from each mining site of hard mineral resources recovered under the permit issued to the permittee.

(4) For purposes of the shipping laws of the United States, any vessel documented under the laws of the United States and used in the commercial recovery, processing, or transportation from any mining site of hard mineral resources recovered under a permit issued under this title shall be deemed to be used in, and used in an essential service in, the foreign commerce of foreign trade of the United States, as defined in section 905(a) of the Merchant Marine Act, 1936, and shall be deemed to be a vessel as defined in section 1101(b) of that Act.

(5) Except as otherwise provided in this paragraph, the processing on land of hard mineral resources recovered pursuant to a permit shall be conducted within the United States; Provided, That the President does not determine that such restrictions contravene the overriding national interests of the United States. The Administrator may allow the processing of hard mineral resources at a place other than within the United States if he finds, after opportunity for an agency hearing, that—

(A) the processing of the quantity concerned of such resource at a place other than within the United States is necessary for the economic viability of the commercial recovery activities of a permittee; and

(c) INTERFERENCE.-No United States citizen

urces (P.L 96-283)

participate in interference with any activity conich has been issu censee or permittee which is authorized to be un has been submit mittee under this Act or with any activity condupursuant to this title

license or permit issued by the United States to t

ling date of any r 11g commercial recove n which exploration

of, and authorized to be undertaken under, a equivalent authorization issued by a reciprocatin

States citizens shall exercise their rights on the

area;

ploration or commercial recovery of hard minerase if such permit is sonable regard for the interests of other states before July 1, 1981,

the freedoms of the high seas.

SEC. 102. LICENSES FOR EXPLORATION AND PEI

CIAL RECOVERY.

the Administrator shall issue to applicants w

Pal recovery to commen

it the exploration plan e date of application for

(a) AUTHORITY TO ISSUE.-Subject to the Py area of the deep seal for licenses for exploration and permits for cot therefor surrender issued under this title shall authorize the hol exploration plan or r

(b) NATURE OF LICENSES AND PERMITS.-(1

an

license or permit issued permit previously issues plan or recovery plan wh ase or permit was revoked

in exploration or commercial recovery, as the, ent with the provisions of this Act, the reg Administrator to implement the provisions of cific terms, conditions, and restrictions app permit by the Administrator.

(2) Any license or permit issued under the approve the transfer States legal entity organized or existing und Vessel for the commerci

sive with respect to the holder thereof as ag

ciprocating state.

(3) A valid existing license shall entitle

under this Act, to a permit for commercial

the

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the permit issued to the

e processing at sea at

eligible under the provisions of this Act under the laws of th recognizes the right of the holder to re at least one vessel do States for the transporta I resources recovered

sources, and to own, transport, use, and sources recovered, under the permit and irral quirements of this Act.

resort to agreed tribunals.

u

(4) In the event of interference with thong laws of the United Sta resolve the controversy by negotiation, cources recovered under a pe other states, the Secretary of State shall essing, or transportation fi (c) RESTRICTIONS.-(1) The Administrat commerce of foreign trade deemed to be used in, and national agreement is ratified by and be a vessel as defined in s (A) any license or permit after thon 905(a) of the Merchant of such license or permit is not inced in this paragraph, the pro (B) any license or permit the exthe United States; Provided. ources recovered pursuant to 2 plan of which, submitted pursuant that such restrictions contrav any exploration plan or recovery of hard mineral, apply to an area to which applies of the United States. The Adm

spect to the United States, except t

ment;

plies under section 103(b), (ii) any

plan associated with any existing antity

resources

of such re
is never for
recover sivities of

the United States
commercial

concerned

30 U.S.C. 1412.

Chorization which has been issued, or for which of application has been submitted, by a recipprior to the filing date of any relevant applicator permits pursuant to this title;

authorizing commercial recovery within any
ep seabed in which exploration is authorized
asting license if such permit is issued to other
e for such area;

tion license before July 1, 1981, or any permit
commercial recovery to commence before Jan-

or permit the exploration plan or recovery
es to any area of the deep seabed if, within
Fore the date of application for such license
applicant therefor surrendered or relin-
der an exploration plan or recovery plan
ious license or permit issued to such ap
e or permit previously issued to the ap
ion plan or recovery plan which applied
cense or permit was revoked under sec-

E, or approve the transfer of a license
ted States citizen.

my vessel for the commercial recovery

53

cal mining unit"

an area of the deep ense in an efficient regard for conservaaking into considerhysical and environthe technology of the lan; or

the deep seabedces can be recovered in e permittee's estimated › initial 20-year term of nical, and orderly manner

and protection of the eneration the resource data, vironmental characteristics, y of the applicant set out in

an is necessary to satisfy the uction requirements over the permit; and

n the permittee's estimated pronot found by the Administrator

SUANCE. Subject to section 101(b), ce of licenses to applicants shall be e chronological order in which license.

-r the processing at sea at hard min-
the permit issued to the permittee ostantial compliance with the require-
ed under the laws of the United absection (a)(2) of this section are filed
at least one vessel documented riority of right shall not be lost in the
al resources recovered under the requirements if the applicant thereafter
tates for the transportation fra led which is in substantial but not full

& Derm

a into conformity with such requirements

laws of the United States le period of time as the Administrator shall of the United States and ons. Sing, or transportation from FOR CERTIFICATION.-Before the Administrator aed to be used in, and permit for commercial recovery, the Administrator writing, after consultation with other departments ommerce of foreign tra 905(a) of the Mercha Pursuant to subsection (e) of this section, thata vessel as definede applicant has demonstrated that, upon issuance or

es recovered under

er of the license or permit, the applicant will be finan

this paragraph responsible to meet all obligations which may be rerecovered purred of a licensee or permittee to engage in the exploration

commercial recovery proposed in the application;

nited States!
(2) the applicant has demonstrated that, upon issuance or
such restri
transfer of the license or permit, the applicant will have the
United S
ard mine technological capability to engage in such exploration or com-

es if he

Conce ed.

mercial recovery;

(3) the applicant has satisfactorily fulfilled all obligations under any license or permit previously issued or transferred to the applicant under this Act; and

539 096- -3

(B) satisfactory assurances have been given by the permittee that such resource, after processing, to the extent of the permittee's ownership therein, will be returned to the United States for domestic use, if the Administrator so requires after determining that the national interest necessitates such return.

SEC. 103.7 LICENSE AND PERMIT APPLICATIONS, REVIEW, AND CERTIFICATION.

(a) APPLICATIONS. (1) Any United States citizen may apply to the Administrator for the issuance of transfer of a license for exploration or a permit for commercial recovery.

(2)(A) Applications for issuance or transfer of license for exploration and permits for commercial recovery shall be made in such form and manner as the Administrator shall prescribe in general and uniform regulations and shall contain such relevant financial, technical, and environmental information as the Administrator may by regulations require as being necessary and appropriate for carrying out the provisions of this title. In accordance with such regulations, each applicant for the issuance of a license shall submit an exploration plan as described in subparagraph (B), and each applicant for a permit shall submit a recovery plan as described in subparagraph (Č).

(B) The exploration plan for a license shall set forth the activities proposed to be carried out during the period of the license, describe the area to be explored, and include the intended exploration schedule and methods to be used, the development and testing of systems for commercial recovery to take place under the terms of the license, an estimated schedule of expenditures, measures to protect the environment and to monitor the effectiveness of environmental safeguards and monitoring systems for commercial recovery, and such other information as is necessary and appropriate to carry out the provisions of this title. The area set forth in an exploration plan shall be of sufficient size to allow for intensive exploration.

(C) The recovery plan for a permit shall set forth the activities proposed to be carried out during the period of the permit, and shall include the intended schedule of commercial recovery, environmental safeguards and monitoring systems, details of the area or areas proposed for commercial recovery, a resource assessment thereof, the methods and technology to be used for commercial recovery and processing, the methods to be used for disposal of wastes from recovery and processing, and such other information as is necessary and appropriate to carry out the provisions of this title.

(D) The applicant shall select the size and location of the area of the exploration plan or recovery plan, which area shall be approved unless the Administrator finds that—

(i) the area is not a logical mining unit; or

(ii) commercial recovery activities in the proposed location would result in a significant adverse impact on the quality of the environment which cannot be avoided by the imposition of reasonable restrictions.

730 U.S.C. 1413.

(E) For purposes of subparagraph (D), "logical mining unit"

means

(i) in the case of a license for exploration, an area of the deep seabed which can be explored under the license in an efficient economical, and orderly manner with due regard for conservation and protection of the environment, taking into consideration the resource data, other relevant physical and environmental characteristics, and the state of the technology of the applicant as set forth in the exploration plan; or

(ii) in the case of a permit, an area of the deep seabed

(I) in which hard mineral resources can be recovered in sufficient quantities to satisfy the permittee's estimated production requirements over the initial 20-year term of the permit in an efficient, economical, and orderly manner with due regard for conservation and protection of the environment, taking into consideration the resource data, other relevant physical and environmental characteristics, and the state of the technology of the applicant set out in the recovery plan;

(II) which is not larger than is necessary to satisfy the permittee's estimated production requirements over the initial 20-year term of the permit; and

(III) in relation to which the permittee's estimated production requirements are not found by the Administrator to be unreasonable.

(b) PRIORITY OF RIGHT FOR ISSUANCE.-Subject to section 101(b), priority of right for the issuance of licenses to applicants shall be established on the basis of the chronological order in which license applications which are in substantial compliance with the requirements established under subsection (a)(2) of this section are filed with the Administrator. Priority of right shall not be lost in the case of any application filed which is in substantial but not full compliance with such requirements if the applicant thereafter brings the application into conformity with such requirements within such reasonable period of time as the Administrator shall prescribe in regulations.

(c) ELIGIBILITY FOR CERTIFICATION.-Before the Administrator may certify any application for issuance or transfer of a license for exploration or permit for commercial recovery, the Administrator must find in writing, after consultation with other departments and agencies pursuant to subsection (e) of this section, that

(1) the applicant has demonstrated that, upon issuance or transfer of the license or permit, the applicant will be financially responsible to meet all obligations which may be required of a licensee or permittee to engage in the exploration or commercial recovery proposed in the application;

(2) the applicant has demonstrated that, upon issuance or transfer of the license or permit, the applicant will have the technological capability to engage in such exploration or commercial recovery;

(3) the applicant has satisfactorily fulfilled all obligations under any license or permit previously issued or transferred to the applicant under this Act; and

88-539 095 3

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