Deep Seabed Mining; Proposed Revisions of Exploration Licenses

[Federal Register Volume 59, Number 173 (Thursday, September 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22073]


[[Page Unknown]]

[Federal Register: September 8, 1994]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration

 

Deep Seabed Mining; Proposed Revisions of Exploration Licenses

agency: National Oceanic and Atmospheric Administration, Commerce.

action: Notice of receipt of applications to revise the exploration 
plans for Deep Seabed Mining Exploration Licenses USA-2, issued to 
Ocean Management, Inc., and USA-3 issued to Ocean Mining Associates; 
request for comments.

-----------------------------------------------------------------------

summary: On February 1, and April 22, 1994, Ocean Mining Associates 
(OMA) and Ocean Management, Inc. (OMI), respectively, submitted to the 
National Oceanic and Atmospheric Administration (NOAA) applications to 
revise the schedule of expenditures contained in the exploration plans 
for Deep Seabed Mining Exploration Licenses USA-2 and USA-3, pursuant 
to section 105(c)(2) of the Deep Seabed Hard Mineral Resources Act 
(``the Act'') (30 U.S.C. 1401 et seq.) and 15 CFR 970.602(c). In each 
application, the consortium has requested a reduction in expenditures 
for years 10 through 13 to reflect a reduction in the scope of its 
activities. No changes are proposed in the nature or schedule of 
activities previously approved by NOAA, nor the licensees' objectives 
of being prepared to file for commercial recovery permits, given a 
viable metals market. NOAA has determined that these proposals 
constitute applications for major but not significant revisions to the 
exploration plans of these licenses pursuant to 15 CFR 970.513, and is 
commencing public review procedures prescribed in 15 CFR 970.514(b).
    Pursuant to the Act and 15 CFR Part 970, on August 29, 1984, NOAA 
issued licenses to OMI and OMA to engage in deep seabed mining 
exploration activities for a period of ten years in sites located in 
the Clarion-Clipperton Fracture Zone of the Pacific Ocean. In 1991 both 
licensees were granted revisions to their licenses for five years, 
based upon a downward trend in world metals market conditions, pursuant 
to 15 CFR 970.515. Since that time OMI and OMA have diligently pursued 
the activities approved in their exploration plans, in accordance with 
the terms, conditions and restrictions of their licenses and 15 CFR 
970.602.

USA-2, Issued to Ocean Management, Inc.

    On July 31, 1991, NOAA approved Revision No. 3 to OMI's Exploration 
License USA-2 to extend the license through August 1999. Concurrently 
NOAA approved an amended exploration plan with expenditures in the 
range of $50,000-$100,000 per annum for years 7 through 13, with higher 
expenditures ($100K-$2M) projected for years 14 through 15 to prepare 
for commercialization. Activities that remain to be completed--years 10 
through 15--include the following activities: monitoring mining 
technology; monitoring national and international developments to 
ensure that a legal framework conducive to commercial exploitation will 
prevail; monitoring world metal market conditions; coordination with 
NOAA regarding environmental data gaps and obtaining necessary 
environmental data for an environmental impact statement relating to a 
permit application; assessing needs for foreign processing and 
potential for conflicting uses of the site; and decisionmaking 
regarding commercialization.
    OMI has reassessed the costs for the activities to be conducted 
through years 10 through 13 (monitoring technical, legal, and political 
developments and coordination with NOAA on preliminary environmental 
work) and has concluded that the costs of carrying out these limited 
activities will fall within the range of $10,000-$20,000 per year. The 
major reason for the lower cost is that the activities called for in 
the plan (until site specific information is required), are being 
carried out by OMI partners at their own individual cost and not billed 
as joint venture expenditures.
    The proposed reduction in expenditures does not jeopardize the 
ability of OMI to apply for a commercial permit, when a permit 
application is warranted. In its application of April 22, 1994, OMI 
further addresses its capability for future compliance with the 
regulatory requirements of an application for commercial recovery as 
set forth in 15 CFR Part 971, Subpart B.
    Prior to issuance of the exploration license, OMI conducted an 
extensive program of site and resource evaluation and commercial 
technology development. The consortium has formulated its preliminary 
designs and specifications for commercial systems and conducted mining 
tests on a pilot scale. It has identified its prime area and gathered a 
considerable amount of resource data in that area in preparation for 
commercial mining. Conflicts have been negotiated and resolved with 
other U.S. miners and ``reciprocating states'' and further resource 
data has been exchanged and integrated into OMI database. In addition 
OMI has participated in international environmental studies and 
developed and tested advance deep sea exploration systems. These 
efforts, conducted in part in cooperation with its German partner, have 
resulted in considerably higher expenditure levels than those predicted 
in its exploration plans over the past ten years.

USA-3, Issued to Ocean Mining Associates

    NOAA approved Revision No. 2 to OMA's Exploration License USA-3 on 
July 31, 1991, which extended the license through August 1999, based on 
metals market instability, early completion of scheduled activities, 
and acquisition of substantial resource data. The currently approved 
exploration plan estimates expenditure levels for years 7 through 12 at 
$50,000 per annum. Year 13 is estimated at $450,000, with the estimated 
$1M-$1.5M for years 14 and 15. Activities in the plan--covering years 7 
through 12--focus on completion of data archives; monitoring legal, 
technical and economic ocean mining activities; and participation in 
cooperative environmental research efforts. In years 13 through 15, OMA 
will begin gear-up activities for commercial mining, which include: 
developing environmental protection and monitoring plans; completion of 
survey operations of candidate mining subareas and selection of a 
logical unit; developing the methods and technology for a base-case 
mining system; planning for processing and mobilization; and completion 
of documentation for application of a commercial permit assuming 
favorable economic conditions so indicate.
    OMA is requesting a reduction in expenditures from $50,000 to 
$25,000 for years 10 through 12. For year 13 a reduction is requested 
from $450,000 to $323,000. The reduction is requested due to adverse 
economic, political and diplomatic conditions. With the exception of 
completing data archiving, no change has been proposed by OMA in the 
nature of activities, as originally approved by NOAA under Revision 2. 
OMA's revision addresses and cross-references both the regulatory 
requirements of an exploration license under 15 CFR Part 970 and an 
application for commercial recovery as set forth in 15 CFR Part 971, 
Subpart B. In addition, OMA has presented a chronology of major 
achievements from 1962 through the license years. During years one 
through nine of its license OMA has considerably exceeded the promised 
activities and expenditures in its plan.
    Subject to 15 CFR 971.802, which excludes confidential information 
from public disclosure, interested persons will be permitted to examine 
the applications for revision and to provide comments by (60 days from 
publication in the FR). These documents may be examined at the below 
listed address.

FOR FURTHER INFORMATION CONTACT: Betty Rosser or Karl Jugel, Ocean 
Minerals and Energy Division (N/ORM1), Office of Ocean and Coastal 
Resource Management, National Ocean Service, National Oceanic and 
Atmospheric Administration, 1305 East-West Highway, Washington, DC 
20910, (301) 713-3159 (Ext 206).

    Dated: September 1, 1994.
W. Stanley Wilson,
Assistant Administrator for Ocean Services and Coastal Zone Management.
[FR Doc. 94-22073 Filed 9-7-94; 8:45 am]
BILLING CODE 3510-12-M