82_FR_42499 82 FR 42327 - Deep Seabed Mining: Approval of Exploration License Extensions

82 FR 42327 - Deep Seabed Mining: Approval of Exploration License Extensions

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

Federal Register Volume 82, Issue 172 (September 7, 2017)

Page Range42327-42329
FR Document2017-18994

NOAA is announcing the approval of two, five-year extensions of deep seabed hard mineral exploration licenses issued under the Deep Seabed Hard Mineral Resource Act (DSHMRA). The decision to approve the extensions follows a determination that the Licensee has substantially complied with the licenses, their terms, conditions and restrictions, and the associated exploration plan, and a review of comments on the requested extensions. No at-sea exploration activities are authorized by these extensions without authorization and further environmental review by NOAA.

Federal Register, Volume 82 Issue 172 (Thursday, September 7, 2017)
[Federal Register Volume 82, Number 172 (Thursday, September 7, 2017)]
[Notices]
[Pages 42327-42329]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18994]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration


Deep Seabed Mining: Approval of Exploration License Extensions

AGENCY: Office for Coastal Management, National Ocean Service, National 
Oceanic and Atmospheric Administration (NOAA), Department of Commerce.

ACTION: Notice of extension of Deep Seabed Hard Mineral Exploration 
Licenses.

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SUMMARY: NOAA is announcing the approval of two, five-year extensions 
of deep seabed hard mineral exploration licenses issued under the Deep 
Seabed

[[Page 42328]]

Hard Mineral Resource Act (DSHMRA). The decision to approve the 
extensions follows a determination that the Licensee has substantially 
complied with the licenses, their terms, conditions and restrictions, 
and the associated exploration plan, and a review of comments on the 
requested extensions. No at-sea exploration activities are authorized 
by these extensions without authorization and further environmental 
review by NOAA.

FOR FURTHER INFORMATION CONTACT:  Kerry Kehoe, Office for Coastal 
Management (N/OCM6), NOS, NOAA, 1305 East-West Highway, Silver Spring, 
MD 20910; 240-533-0782; email [email protected].

SUPPLEMENTARY INFORMATION: On February 21, 2017, Lockheed Martin 
Corporation (Licensee or ``LMC'') requested from NOAA an extension of 
two exploration licenses that it holds under the Deep Seabed Hard 
Mineral Resources Act (DSHMRA). The licenses are known as USA-1 and 
USA-4.
    When originally issued in 1984, USA-1 and USA-4 were for a term of 
ten years. DSHMRA requires that requests to extend the licenses be 
approved every five years if the licensee has substantially complied 
with the licenses, their terms, conditions and restrictions, and the 
associated exploration plan.
    On April 20, 2017, NOAA published a Federal Register notice (82 FR 
18613) announcing the receipt of the extension request for USA-1 and 
USA-4, and soliciting comments on whether the Licensee had met the 
statutory requirement of showing substantial compliance. Comments were 
also solicited from the Western Pacific Fisheries Management Council 
(WPFMC) and the U.S. Department of State. A response to comments is 
included in this notice.
    Upon determining that the Licensee had substantially complied with 
the licenses, their terms, conditions and restrictions, and the 
associated exploration plan, and completing environmental review of the 
request for extension in conformance with the requirements of the 
National Environmental Policy Act, NOAA approved a five-year extension 
of the licenses through June 2, 2022. The extension maintains the 
proprietary interests that the licenses confer upon the Licensee but 
does not authorize LMC to conduct at-sea exploration activities 
pursuant to the licenses. Additional authorization and further 
environmental review by NOAA is required before at-sea exploration may 
be undertaken pursuant to these licenses.
    Response to Comments: As noted above, in addition to the Federal 
Register notice requesting comments on the extension request, comments 
were solicited from WPFMC and the U.S. Department of State. The WPFMC 
found that none of the fisheries under the Council's jurisdiction would 
be affected by the onshore activities outlined in the extension 
request, and had no objections to the extension. The Department of 
State reviewed the request and had no objections or comments.
    NOAA received five responses to the Federal Register notice request 
for comments. The comments received are summarized as follows along 
with the responses by the NOAA Office for Coastal Management.
    Comment: Deep seabed mining can result in environmental disturbance 
and harm to ocean ecosystems and should not be authorized.
    Response: LMC is not proposing, and NOAA is not authorizing, at-sea 
deep seabed exploration activities at this time. Rather, NOAA is 
extending existing exploration licenses, which by their terms, require 
additional NOAA approval prior to the Licensee commencing at-sea 
exploration activities. Commercial recovery operations are not 
permitted by the USA-1 and USA-4 licenses.
    Comment: Unless and until there is full accession by the United 
States to the 1982 United Nations Law on the Sea Convention, United 
States companies should be prohibited from conducting exploration 
activities on the international seabed.
    Response: The NOAA Administrator is under an obligation established 
by Congress to issue an extension of these licenses to a U.S. applicant 
if the relevant criteria are satisfied. One of the express purposes of 
DSHMRA is to establish an interim program to regulate the exploration 
for and commercial recovery of hard mineral resources of the deep 
seabed by United States citizens pending the ratification by, and 
entering into force with respect to the United States, of what was then 
known as the Law of the Sea Treaty. See 30 U.S.C. 1401(b)(3). Under the 
requirements of Section 107(a) of DSHMRA, NOAA is required to approve 
requests to extend exploration licenses if the Licensee has 
substantially complied with the license, its terms, conditions and 
restrictions, and the exploration plan associated therewith. See 30 
U.S.C. 1417(a). Consistent with the criteria set forth in 15 CFR 
970.515(b), NOAA has determined that the Licensee has substantially 
complied with the licenses, their terms, conditions and restrictions, 
and associated exploration plan, and therefore, extension of USA-1 and 
USA-4 licenses may not be withheld. A DSHMRA exploration license gives 
the holder the exclusive right to explore a specific area, but only as 
against other U.S. entities. Any rights a U.S. company may have 
domestically are not secured internationally because U.S. companies are 
not able to go through the internationally recognized process at the 
International Seabed Authority established for Parties to the United 
Nations Convention on the Law of the Sea (UNCLOS).
    Comment: There has not been meaningful progress by the Licensee to 
show that there has been substantial compliance with the licenses and 
exploration plan. In claiming that the exploration plan has been 
diligently pursued, the Licensee claims credit for work that was not 
conducted by the Licensee or even in the USA-1 or USA-4 license areas. 
The extension request should be denied.
    Response: NOAA disagrees with the conclusion that the Licensee has 
not substantially complied with the USA-1 and USA-4 licenses and the 
exploration plan associated therewith.
    In assessing whether the Licensee has substantially complied with 
the licenses, their terms, conditions and restrictions, and the 
associated exploration plan, the Act requires that the Licensee pursue 
diligently the activities described in its approved exploration plan. 
The licenses further specify that in order to show that it has 
diligently pursued the activities in its approved exploration plan, the 
Licensee shall submit an annual report demonstrating conformance with 
the schedule of activities, level of activity, and expenditures for 
implementing the plan. This report also focuses on the evolving ability 
of the Licensee to apply for a permit for commercial recovery.
    In regard to satisfying the diligence requirement, the Deep Seabed 
Mining Regulations for Exploration Licenses state that:

    Ultimately, the diligence requirement will involve a 
retrospective determination by the Administrator, based on the 
licensee's reasonable conformance to the approved exploration plan. 
Such determination, however, will take into account the need for 
some degree of flexibility in an exploration plan. It will also 
include consideration of the needs and state of development of each 
licensee, again based on the approved exploration plan. In addition, 
the determination will take account of legitimate periods of time 
when there is no or very low expenditure, and will allow for a 
certain

[[Page 42329]]

degree of flexibility for changes encountered by the licensee in 
such factors as its resource knowledge and financial considerations. 
15 CFR 970.602(c).

    The exploration plans associated with these licenses have evolved 
since their original approval as part of the initial license issuance 
in 1984. In 1991, NOAA approved a revised exploration plan for USA-1 
delaying at-sea exploration due to unfavorable conditions in the metals 
markets.\1\ Subsequent extensions of USA-1 included the approval of the 
exploration plan with the delayed implementation of at-sea activities 
(referred to as ``Phase II Activities'' in the exploration plan). When 
NOAA approved the transfer of USA-4 to the Ocean Minerals Company 
(OMCO), the predecessor to LMC, in 1994, OMCO stated that no at-sea 
exploration activities were planned or needed due to data collection 
that preceded the enactment of DSHMRA. In 2012, NOAA approved a 
consolidated exploration plan for USA-1 and USA-4 with the same 
contingency delaying the start of Phase II at-sea exploration 
activities due to unfavorable market conditions. In addition, the 
Licensee cited the need to have security of tenure through 
international recognition of the licenses by the International Seabed 
Authority following accession by the United States to the UNCLOS, as a 
justification for delay of the Phase II exploration activities. Since 
the last extension of these exploration licenses, LMC has made 
substantial expenditures on activities pursuant its approved 
exploration plan.\2\ Noteworthy activities of LMC include:
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    \1\ DSHMRA regulations provide that the Administrator may make 
allowance for deviation from the exploration plan for good cause, 
such as significantly changed market conditions (provided the 
request for extension is accompanied by an amended exploration plan 
to govern the activities of the licensee during the extended 
period). See 15 CFR 970.515(b).
    \2\ Although LMC has discussed some work performed in 
collaboration with a United Kingdom subsidiary in its annual 
reports, NOAA's determination of substantial compliance was based 
upon an assessment of LMC's contributions to these collaborative 
efforts.
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     The integration of data into a GIS system to map nodule 
density including the density distribution of nodules by concentrations 
of target metals;
     The development of environmental baseline metrics by 
benthic organism class;
     The development of updated economic models based on the 
validation of the end-to-end baseline architecture for seabed mining 
through the assessment of each segment of the architecture for its 
technical and economic feasibility;
     Benchtop metallurgical tests of extraction efficiencies 
for the primary commercial target metals and Rare Earth Elements found 
in nodules;
     Selecting the chain of custody and processing protocols 
that will be used for mineral content certification which will be 
necessary in order to obtain financing for future operations; and
     Participation in the meetings and discussions of the 
International Seabed Authority and various international programs 
pertaining to the deep seabed.
    In addition, the approved exploration plan includes environmental 
assessment activities that must occur as a prerequisite to undertaking 
Phase II. These activities are necessary to further advance the 
understanding of the seabed environment, and the scientific methodology 
for its characterization. Developing this understanding is not limited 
to activities pertaining specifically to the areas licensed to LMC. 
Working collaboratively with research institutions, nation states, and 
exploration contractors authorized by the International Seabed 
Authority, LMC has contributed to collaborative efforts that have made 
substantial advancements in identifying organisms inhabiting the deep 
seabed, their abundance, distribution, diversity, and community 
structure. In addition to taxonomic classifications, these efforts have 
included genetic characterizations, which are critical to establishing 
biogeographical distinctions and connectivity in the deep seabed 
environment. This data and information, in turn, can be used for 
predictive habitat modelling. These contributions to the advancement of 
science are expected to be applicable to activities in the areas within 
the USA-1 and USA-4 licenses when Phase II activities are proposed 
there. NOAA, therefore, views these efforts as further evidence of the 
Licensee's diligence in pursuing the activities described in the 
exploration plan.
    As discussed in the exploration plan associated with the requested 
extension of USA-1 and USA-4, the Licensee continues to find that the 
market conditions and the lack of international tenure under UNCLOS 
prevent the company from moving forward with Phase II of its 
exploration plan. Nonetheless, the Licensee has demonstrated a 
commitment to retain the licenses on a legitimate presumption that the 
existing contingencies will be resolved. LMC's annual reports 
demonstrate that preparatory work for at-sea exploration is continuing 
and NOAA has determined that such efforts constitute substantial 
compliance with the USA-1 and USA-4 licenses and associated exploration 
plan. As such, extension of USA-1 and USA-4 is warranted.
    Comment: Due to the LMC's failure to adequately specify what 
activities are to occur under the individual exploration licenses, the 
applicant has failed to substantially comply with its license and 
application plan, and therefore, the extension requests should be 
denied.
    Response: NOAA disagrees. In 2012, NOAA approved a consolidated 
exploration plan for USA-1 and USA-4. The Phase I preparatory 
activities within the approved consolidated exploration plan are 
described generally and appropriately apply to both areas. Given the 
general nature of the preparatory activities under Phase I, separate 
descriptions of those activities for both license areas are not 
necessary. As described above, the Licensee has provided sufficient 
justification to determine that it has substantially complied with the 
licenses and associated exploration plan. If the Licensee proceeds to 
Phase II, activity descriptions pertaining specific areas may be 
necessary.

    Federal Domestic Assistance Catalog 11.419 Coastal Zone 
Management Program Administration.

    Dated: August 30, 2017.
Donna Rivelli,
Associate Assistant Administrator for Management and CFO/CAO, Ocean 
Services and Coastal Zone Management, National Oceanic and Atmospheric 
Administration.
[FR Doc. 2017-18994 Filed 9-6-17; 8:45 am]
BILLING CODE 3510-08-P



                                                                            Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices                                                 42327

                                                  Soft start shall be implemented at the                  informational elements described in the               NMFS reviews the circumstances of the
                                                  start of each day’s impact pile driving                 application, at minimum (see                          incident. NMFS will work with Venoco
                                                  and at any time following cessation of                  www.nmfs.noaa.gov/pr/permits/                         to determine whether additional
                                                  impact pile driving for a period of thirty              incidental/construction.htm), and shall               mitigation measures or modifications to
                                                  minutes or longer.                                      also include:                                         the activities are appropriate.
                                                     (h) Pile driving shall only be                         i. Detailed information about any                      iii. In the event that Venoco discovers
                                                  conducted during daylight hours.                        implementation of shutdowns,                          an injured or dead marine mammal, and
                                                     (i) Pile driving shall only occur during             including the distance of animals to the              the lead observer determines that the
                                                  July to November months.                                pile and description of specific actions              injury or death is not associated with or
                                                     5. Monitoring.                                       that ensued and resulting behavior of                 related to the activities authorized in the
                                                     The holder of this Authorization is                  the animal, if any.                                   IHA (e.g., previously wounded animal,
                                                  required to conduct marine mammal                         ii. Description of attempts to                      carcass with moderate to advanced
                                                  monitoring during pile driving and                      distinguish between the number of                     decomposition, scavenger damage),
                                                  removal activities. Marine mammal                       individual animals taken and the                      Venoco shall report the incident to the
                                                  monitoring and reporting shall be                       number of incidents of take, such as                  Office of Protected Resources, NMFS,
                                                  conducted in accordance with the                        ability to track groups or individuals.               and the West Coast Regional Stranding
                                                  monitoring measures in the application.                   iii. An estimated total take estimate               Coordinator, NMFS, within 24 hours of
                                                     (a) Venoco shall collect sighting data               extrapolated from the number of marine                the discovery. Venoco shall provide
                                                  and behavioral responses to pile driving                mammals observed during the course of                 photographs or video footage or other
                                                  for marine mammal species observed in                   construction activities, if necessary.                documentation of the stranded animal
                                                  the region of activity during the period                  (b) Reporting injured or dead marine                sighting to NMFS.
                                                  of activity. All observers shall be trained             mammals:                                                 7. This Authorization may be
                                                  in marine mammal identification and                       i. In the unanticipated event that the              modified, suspended or withdrawn if
                                                  behaviors, and shall have no other                      specified activity clearly causes the take            the holder fails to abide by the
                                                  construction-related tasks while                        of a marine mammal in a manner                        conditions prescribed herein, or if
                                                  conducting monitoring.                                  prohibited by this IHA, such as a serious             NMFS determines the authorized taking
                                                     (b) Monitoring shall be conducted by                 injury or mortality, Venoco shall                     is having more than a negligible impact
                                                  qualified observers. Trained observers                  immediately cease the specified                       on the species or stock of affected
                                                  shall be placed from the best vantage                   activities and report the incident to the             marine mammals.
                                                  point(s) practicable to monitor for                     Office of Protected Resources, NMFS,
                                                  marine mammals and implement                            and the Alaska Regional Stranding                     Request for Public Comments
                                                  shutdown or delay procedures when                       Coordinator. The report must include                     We request comment on our analyses,
                                                  applicable through communication with                   the following information:                            the draft authorization, and any other
                                                  the equipment operator. Observer                          A. Time and date of the incident;                   aspect of this Notice of Proposed IHA
                                                  training must be provided prior to                        B. Description of the incident;                     for the proposed fender pile
                                                  project start and in accordance with the                  C. Environmental conditions (e.g.,                  replacement. Please include with your
                                                  monitoring measures in the application,                 wind speed and direction, Beaufort sea                comments any supporting data or
                                                  and shall include instruction on species                state, cloud cover, and visibility);                  literature citations to help inform our
                                                  identification (sufficient to distinguish                 D. Description of all marine mammal                 final decision on the request for MMPA
                                                  the species listed in 3(b)), description                observations in the 24 hours preceding                authorization.
                                                  and categorization of observed                          the incident;
                                                                                                            E. Species identification or                          Dated: September 1, 2017.
                                                  behaviors and interpretation of
                                                  behaviors that may be construed as                      description of the animal(s) involved;                Donna S. Wieting,
                                                  being reactions to the specified activity,                F. Fate of the animal(s); and                       Director, Office of Protected Resources,
                                                  proper completion of data forms, and                      G. Photographs or video footage of the              National Marine Fisheries Service.
                                                  other basic components of biological                    animal(s).                                            [FR Doc. 2017–18974 Filed 9–6–17; 8:45 am]
                                                  monitoring, including tracking of                         Activities shall not resume until                   BILLING CODE 3510–22–P
                                                  observed animals or groups of animals                   NMFS is able to review the
                                                  such that repeat sound exposures may                    circumstances of the prohibited take.
                                                  be attributed to individuals (to the                    NMFS will work with Venoco to                         DEPARTMENT OF COMMERCE
                                                  extent possible).                                       determine what measures are necessary
                                                     (c) For all marine mammal                            to minimize the likelihood of further                 National Oceanic and Atmospheric
                                                  monitoring, the information shall be                    prohibited take and ensure MMPA                       Administration
                                                  recorded as described in the monitoring                 compliance. Venoco may not resume
                                                                                                                                                                Deep Seabed Mining: Approval of
                                                  measures section of the application.                    their activities until notified by NMFS.
                                                                                                            ii. In the event that the Venoco                    Exploration License Extensions
                                                     6. Reporting.
                                                     The holder of this Authorization is                  discovers an injured or dead marine                   AGENCY: Office for Coastal Management,
                                                  required to:                                            mammal, and the lead observer                         National Ocean Service, National
                                                     (a) Submit a draft report on all                     determines that the cause of the injury               Oceanic and Atmospheric
                                                  monitoring conducted under the IHA                      or death is unknown and the death is                  Administration (NOAA), Department of
                                                  within 90 days of the completion of                     relatively recent (e.g., in less than a               Commerce.
                                                  marine mammal monitoring, or 60 days                    moderate state of decomposition),
mstockstill on DSK30JT082PROD with NOTICES




                                                                                                                                                                ACTION: Notice of extension of Deep
                                                  prior to the issuance of any subsequent                 Venoco shall immediately report the                   Seabed Hard Mineral Exploration
                                                  IHA for projects at the Project area,                   incident to the Office of Protected                   Licenses.
                                                  whichever comes first. A final report                   Resources, NMFS, and the West Coast
                                                  shall be prepared and submitted within                  Regional Stranding Coordinator.                       SUMMARY:   NOAA is announcing the
                                                  thirty days following resolution of                       The report must include the same                    approval of two, five-year extensions of
                                                  comments on the draft report from                       information identified in 6(b)(i) of this             deep seabed hard mineral exploration
                                                  NMFS. This report must contain the                      IHA. Activities may continue while                    licenses issued under the Deep Seabed


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                                                  42328                     Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices

                                                  Hard Mineral Resource Act (DSHMRA).                     be undertaken pursuant to these                       the Licensee has substantially complied
                                                  The decision to approve the extensions                  licenses.                                             with the licenses, their terms,
                                                  follows a determination that the                           Response to Comments: As noted                     conditions and restrictions, and
                                                  Licensee has substantially complied                     above, in addition to the Federal                     associated exploration plan, and
                                                  with the licenses, their terms,                         Register notice requesting comments on                therefore, extension of USA–1 and
                                                  conditions and restrictions, and the                    the extension request, comments were                  USA–4 licenses may not be withheld. A
                                                  associated exploration plan, and a                      solicited from WPFMC and the U.S.                     DSHMRA exploration license gives the
                                                  review of comments on the requested                     Department of State. The WPFMC found                  holder the exclusive right to explore a
                                                  extensions. No at-sea exploration                       that none of the fisheries under the                  specific area, but only as against other
                                                  activities are authorized by these                      Council’s jurisdiction would be affected              U.S. entities. Any rights a U.S. company
                                                  extensions without authorization and                    by the onshore activities outlined in the             may have domestically are not secured
                                                  further environmental review by NOAA.                   extension request, and had no                         internationally because U.S. companies
                                                                                                          objections to the extension. The                      are not able to go through the
                                                  FOR FURTHER INFORMATION CONTACT:
                                                                                                          Department of State reviewed the                      internationally recognized process at the
                                                  Kerry Kehoe, Office for Coastal                         request and had no objections or                      International Seabed Authority
                                                  Management (N/OCM6), NOS, NOAA,                         comments.                                             established for Parties to the United
                                                  1305 East-West Highway, Silver Spring,                     NOAA received five responses to the                Nations Convention on the Law of the
                                                  MD 20910; 240–533–0782; email                           Federal Register notice request for                   Sea (UNCLOS).
                                                  Kerry.Kehoe@noaa.gov.                                   comments. The comments received are                      Comment: There has not been
                                                  SUPPLEMENTARY INFORMATION:      On                      summarized as follows along with the                  meaningful progress by the Licensee to
                                                  February 21, 2017, Lockheed Martin                      responses by the NOAA Office for                      show that there has been substantial
                                                  Corporation (Licensee or ‘‘LMC’’)                       Coastal Management.                                   compliance with the licenses and
                                                  requested from NOAA an extension of                        Comment: Deep seabed mining can                    exploration plan. In claiming that the
                                                  two exploration licenses that it holds                  result in environmental disturbance and               exploration plan has been diligently
                                                  under the Deep Seabed Hard Mineral                      harm to ocean ecosystems and should                   pursued, the Licensee claims credit for
                                                  Resources Act (DSHMRA). The licenses                    not be authorized.                                    work that was not conducted by the
                                                  are known as USA–1 and USA–4.                              Response: LMC is not proposing, and                Licensee or even in the USA–1 or
                                                     When originally issued in 1984,                      NOAA is not authorizing, at-sea deep                  USA–4 license areas. The extension
                                                  USA–1 and USA–4 were for a term of                      seabed exploration activities at this                 request should be denied.
                                                                                                          time. Rather, NOAA is extending                          Response: NOAA disagrees with the
                                                  ten years. DSHMRA requires that
                                                                                                          existing exploration licenses, which by               conclusion that the Licensee has not
                                                  requests to extend the licenses be
                                                                                                          their terms, require additional NOAA                  substantially complied with the USA–1
                                                  approved every five years if the licensee
                                                                                                          approval prior to the Licensee                        and USA–4 licenses and the exploration
                                                  has substantially complied with the
                                                                                                          commencing at-sea exploration                         plan associated therewith.
                                                  licenses, their terms, conditions and
                                                                                                          activities. Commercial recovery                          In assessing whether the Licensee has
                                                  restrictions, and the associated
                                                                                                          operations are not permitted by the                   substantially complied with the
                                                  exploration plan.
                                                                                                          USA–1 and USA–4 licenses.                             licenses, their terms, conditions and
                                                     On April 20, 2017, NOAA published                       Comment: Unless and until there is                 restrictions, and the associated
                                                  a Federal Register notice (82 FR 18613)                 full accession by the United States to                exploration plan, the Act requires that
                                                  announcing the receipt of the extension                 the 1982 United Nations Law on the Sea                the Licensee pursue diligently the
                                                  request for USA–1 and USA–4, and                        Convention, United States companies                   activities described in its approved
                                                  soliciting comments on whether the                      should be prohibited from conducting                  exploration plan. The licenses further
                                                  Licensee had met the statutory                          exploration activities on the                         specify that in order to show that it has
                                                  requirement of showing substantial                      international seabed.                                 diligently pursued the activities in its
                                                  compliance. Comments were also                             Response: The NOAA Administrator                   approved exploration plan, the Licensee
                                                  solicited from the Western Pacific                      is under an obligation established by                 shall submit an annual report
                                                  Fisheries Management Council                            Congress to issue an extension of these               demonstrating conformance with the
                                                  (WPFMC) and the U.S. Department of                      licenses to a U.S. applicant if the                   schedule of activities, level of activity,
                                                  State. A response to comments is                        relevant criteria are satisfied. One of the           and expenditures for implementing the
                                                  included in this notice.                                express purposes of DSHMRA is to                      plan. This report also focuses on the
                                                     Upon determining that the Licensee                   establish an interim program to regulate              evolving ability of the Licensee to apply
                                                  had substantially complied with the                     the exploration for and commercial                    for a permit for commercial recovery.
                                                  licenses, their terms, conditions and                   recovery of hard mineral resources of                    In regard to satisfying the diligence
                                                  restrictions, and the associated                        the deep seabed by United States                      requirement, the Deep Seabed Mining
                                                  exploration plan, and completing                        citizens pending the ratification by, and             Regulations for Exploration Licenses
                                                  environmental review of the request for                 entering into force with respect to the               state that:
                                                  extension in conformance with the                       United States, of what was then known
                                                                                                                                                                   Ultimately, the diligence requirement will
                                                  requirements of the National                            as the Law of the Sea Treaty. See 30                  involve a retrospective determination by the
                                                  Environmental Policy Act, NOAA                          U.S.C. 1401(b)(3). Under the                          Administrator, based on the licensee’s
                                                  approved a five-year extension of the                   requirements of Section 107(a) of                     reasonable conformance to the approved
                                                  licenses through June 2, 2022. The                      DSHMRA, NOAA is required to approve                   exploration plan. Such determination,
                                                  extension maintains the proprietary                     requests to extend exploration licenses               however, will take into account the need for
mstockstill on DSK30JT082PROD with NOTICES




                                                  interests that the licenses confer upon                 if the Licensee has substantially                     some degree of flexibility in an exploration
                                                  the Licensee but does not authorize                     complied with the license, its terms,                 plan. It will also include consideration of the
                                                  LMC to conduct at-sea exploration                       conditions and restrictions, and the                  needs and state of development of each
                                                                                                                                                                licensee, again based on the approved
                                                  activities pursuant to the licenses.                    exploration plan associated therewith.                exploration plan. In addition, the
                                                  Additional authorization and further                    See 30 U.S.C. 1417(a). Consistent with                determination will take account of legitimate
                                                  environmental review by NOAA is                         the criteria set forth in 15 CFR                      periods of time when there is no or very low
                                                  required before at-sea exploration may                  970.515(b), NOAA has determined that                  expenditure, and will allow for a certain



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                                                                            Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices                                                 42329

                                                  degree of flexibility for changes encountered           architecture for its technical and                    constitute substantial compliance with
                                                  by the licensee in such factors as its resource         economic feasibility;                                 the USA–1 and USA–4 licenses and
                                                  knowledge and financial considerations. 15                 • Benchtop metallurgical tests of                  associated exploration plan. As such,
                                                  CFR 970.602(c).                                         extraction efficiencies for the primary               extension of USA–1 and USA–4 is
                                                     The exploration plans associated with                commercial target metals and Rare Earth               warranted.
                                                  these licenses have evolved since their                 Elements found in nodules;                               Comment: Due to the LMC’s failure to
                                                  original approval as part of the initial                   • Selecting the chain of custody and               adequately specify what activities are to
                                                  license issuance in 1984. In 1991,                      processing protocols that will be used                occur under the individual exploration
                                                  NOAA approved a revised exploration                     for mineral content certification which               licenses, the applicant has failed to
                                                  plan for USA–1 delaying at-sea                          will be necessary in order to obtain                  substantially comply with its license
                                                  exploration due to unfavorable                          financing for future operations; and                  and application plan, and therefore, the
                                                                                                             • Participation in the meetings and                extension requests should be denied.
                                                  conditions in the metals markets.1
                                                                                                          discussions of the International Seabed                  Response: NOAA disagrees. In 2012,
                                                  Subsequent extensions of USA–1
                                                                                                          Authority and various international                   NOAA approved a consolidated
                                                  included the approval of the exploration
                                                                                                          programs pertaining to the deep seabed.               exploration plan for USA–1 and
                                                  plan with the delayed implementation                       In addition, the approved exploration
                                                  of at-sea activities (referred to as ‘‘Phase                                                                  USA–4. The Phase I preparatory
                                                                                                          plan includes environmental assessment                activities within the approved
                                                  II Activities’’ in the exploration plan).               activities that must occur as a
                                                  When NOAA approved the transfer of                                                                            consolidated exploration plan are
                                                                                                          prerequisite to undertaking Phase II.                 described generally and appropriately
                                                  USA–4 to the Ocean Minerals Company                     These activities are necessary to further
                                                  (OMCO), the predecessor to LMC, in                                                                            apply to both areas. Given the general
                                                                                                          advance the understanding of the                      nature of the preparatory activities
                                                  1994, OMCO stated that no at-sea                        seabed environment, and the scientific
                                                  exploration activities were planned or                                                                        under Phase I, separate descriptions of
                                                                                                          methodology for its characterization.                 those activities for both license areas are
                                                  needed due to data collection that                      Developing this understanding is not
                                                  preceded the enactment of DSHMRA. In                                                                          not necessary. As described above, the
                                                                                                          limited to activities pertaining                      Licensee has provided sufficient
                                                  2012, NOAA approved a consolidated                      specifically to the areas licensed to
                                                  exploration plan for USA–1 and                                                                                justification to determine that it has
                                                                                                          LMC. Working collaboratively with                     substantially complied with the licenses
                                                  USA–4 with the same contingency                         research institutions, nation states, and
                                                  delaying the start of Phase II at-sea                                                                         and associated exploration plan. If the
                                                                                                          exploration contractors authorized by                 Licensee proceeds to Phase II, activity
                                                  exploration activities due to unfavorable               the International Seabed Authority,
                                                  market conditions. In addition, the                                                                           descriptions pertaining specific areas
                                                                                                          LMC has contributed to collaborative                  may be necessary.
                                                  Licensee cited the need to have security                efforts that have made substantial
                                                  of tenure through international                         advancements in identifying organisms                   Federal Domestic Assistance Catalog
                                                  recognition of the licenses by the                                                                            11.419 Coastal Zone Management Program
                                                                                                          inhabiting the deep seabed, their                     Administration.
                                                  International Seabed Authority                          abundance, distribution, diversity, and
                                                  following accession by the United States                community structure. In addition to                     Dated: August 30, 2017.
                                                  to the UNCLOS, as a justification for                   taxonomic classifications, these efforts              Donna Rivelli,
                                                  delay of the Phase II exploration                       have included genetic characterizations,              Associate Assistant Administrator for
                                                  activities. Since the last extension of                 which are critical to establishing                    Management and CFO/CAO, Ocean Services
                                                  these exploration licenses, LMC has                     biogeographical distinctions and                      and Coastal Zone Management, National
                                                  made substantial expenditures on                        connectivity in the deep seabed                       Oceanic and Atmospheric Administration.
                                                  activities pursuant its approved                        environment. This data and                            [FR Doc. 2017–18994 Filed 9–6–17; 8:45 am]
                                                  exploration plan.2 Noteworthy activities                information, in turn, can be used for                 BILLING CODE 3510–08–P
                                                  of LMC include:                                         predictive habitat modelling. These
                                                     • The integration of data into a GIS                 contributions to the advancement of
                                                  system to map nodule density including                  science are expected to be applicable to              DEPARTMENT OF COMMERCE
                                                  the density distribution of nodules by                  activities in the areas within the                    National Oceanic and Atmospheric
                                                  concentrations of target metals;                        USA–1 and USA–4 licenses when Phase                   Administration
                                                     • The development of environmental                   II activities are proposed there. NOAA,
                                                  baseline metrics by benthic organism                    therefore, views these efforts as further             RIN 0648–XD990
                                                  class;                                                  evidence of the Licensee’s diligence in
                                                                                                          pursuing the activities described in the              Atlantic Highly Migratory Species;
                                                     • The development of updated                                                                               Essential Fish Habitat
                                                  economic models based on the                            exploration plan.
                                                  validation of the end-to-end baseline                      As discussed in the exploration plan               AGENCY:  National Marine Fisheries
                                                  architecture for seabed mining through                  associated with the requested extension               Service (NMFS), National Oceanic and
                                                  the assessment of each segment of the                   of USA–1 and USA–4, the Licensee                      Atmospheric Administration (NOAA),
                                                                                                          continues to find that the market                     Commerce.
                                                    1 DSHMRA regulations provide that the
                                                                                                          conditions and the lack of international              ACTION: Notice of availability of Final
                                                  Administrator may make allowance for deviation          tenure under UNCLOS prevent the                       Environmental Assessment.
                                                  from the exploration plan for good cause, such as       company from moving forward with
                                                  significantly changed market conditions (provided       Phase II of its exploration plan.                     SUMMARY:   NMFS announces the
                                                  the request for extension is accompanied by an          Nonetheless, the Licensee has                         availability of a Final Environmental
mstockstill on DSK30JT082PROD with NOTICES




                                                  amended exploration plan to govern the activities
                                                  of the licensee during the extended period). See 15     demonstrated a commitment to retain                   Assessment for Amendment 10 to the
                                                  CFR 970.515(b).                                         the licenses on a legitimate presumption              2006 Consolidated Atlantic Highly
                                                    2 Although LMC has discussed some work                that the existing contingencies will be               Migratory Species (HMS) Fishery
                                                  performed in collaboration with a United Kingdom        resolved. LMC’s annual reports                        Management Plan (FMP). This Final
                                                  subsidiary in its annual reports, NOAA’s
                                                  determination of substantial compliance was based
                                                                                                          demonstrate that preparatory work for                 Amendment updates Atlantic HMS
                                                  upon an assessment of LMC’s contributions to these      at-sea exploration is continuing and                  essential fish habitat (EFH) based on
                                                  collaborative efforts.                                  NOAA has determined that such efforts                 new scientific evidence or other


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Document Created: 2017-09-07 02:01:41
Document Modified: 2017-09-07 02:01:41
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of extension of Deep Seabed Hard Mineral Exploration Licenses.
ContactKerry Kehoe, Office for Coastal Management (N/OCM6), NOS, NOAA, 1305 East-West Highway, Silver Spring, MD 20910; 240-533-0782; email [email protected]
FR Citation82 FR 42327 

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