[Code of Federal Regulations]
[Title 15, Volume 3]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR970.302]

[Page 321-324]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
CHAPTER IX--NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION, DEPARTMENT 
                               OF COMMERCE
 
PART 970_DEEP SEABED MINING REGULATIONS FOR EXPLORATION LICENSES--Table of 
Contents
 
  Subpart C_Procedures for Applications Based on Exploration Commenced 
    Before June 28, 1980; Resolution of Conflicts Among Overlapping 
               Applications; Applications by New Entrants
 
Sec. 970.302  Procedures and criteria for resolving conflicts.

    (a) General. This section governs the resolution of all conflicts 
between or among applications or amendments having pre-enactment 
explorer priority of right.
    (b) Identification of applicants. On June 21, 1982, the 
Administrator will meet with representatives of reciprocating states to 
identify their respective pre-enactment explorer applicants, and will 
identify the coordinates of the application areas applied for by such 
applicants.
    (c) Initial processing. On or before July 13, 1982, the 
Administrator will determine whether each domestic application is 
entitled to a priority of right based on pre-enactment exploration in 
accordance with Sec. 970.301.
    (d) Identification of conflicts. On July 14, 1982, the Administrator 
will meet with representatives of reciprocating states to exchange lists 
of applications accorded pre-enactment explorer priorities of right, and 
will identify any conflicts existing among such applications.
    (e) Notification to applicants of conflicts. If the Administrator 
identifies a conflict, he will send, no later than July 22, 1982, 
written notice of the conflict to each domestic applicant involved in 
the conflict. The notice will:
    (1) Identify each applicant involved in the conflict in question:
    (2) Identify the coordinates of the portions of the application 
areas which are in conflict;
    (3) Indicate that the applicant may request from the Administrator 
the coordinates of the application areas from any other applications 
filed with the Administrator or with a reciprocating state (such 
coordinates will be provided subject to appropriate confidentiality 
arrangements);
    (4) State whether;
    (i) Each domestic application involved in the conflict is in 
substantial or, if known, full compliance with the requirements 
described in Sec. 970.209(b); and
    (ii) Each foreign application involved in the conflict meets, if 
known, the legal requirements of the reciprocating state in which it is 
filed;
    (5) Notify each domestic applicant involved in a conflict that he 
may, after July 22, 1982, and on or before November 16, 1982, resolve 
the conflict voluntarily according to paragraph (f) of this section, and 
that on or after November 17, 1982, any unresolved conflict shall be 
resolved in accordance with paragraph (j) or (k) of this section, as 
applicable; and

[[Page 322]]

    (6) In the case of an international conflict, include a copy of any 
applicable conflict resolution procedures in force between the United 
States and its reciprocating states pursuant to section 118 of the Act.
    (f) Voluntary resolution of conflicts. Each U.S. applicant involved 
in a conflict may resolve the conflict after July 22, 1982, and on or 
before November 16, 1982, by:
    (1) Unilaterally, or by agreement with each other applicant involved 
in the conflict, filing an amendment to the application eliminating the 
conflict; or
    (2) Agreeing in writing with the other applicant(s) involved in the 
conflict to submit it to an agreed binding conflict resolution 
procedure.
    (g) Amendments. (1) Amendments must be filed in accordance with the 
requirements for applications described in Sec. 970.200.
    (2) The Administrator will:
    (i) Accept no amendment prior to July 23, 1982;
    (ii) Accord pre-enactment explorer priority of right only to 
amendments which:
    (A) Pertain to areas with respect to which the applicant has engaged 
in pre-enactment exploration;
    (B) Resolve an existing conflict with respect to that application;
    (C) Do not apply for an area included in an application filed 
pursuant to Sec. 970.301 which is accorded pre-enactment explorer 
priority of right or an application identified pursuant to Sec. 
970.302(b) which has been filed with a reciprocating state; and
    (D) Are filed on or before October 15, 1982; and
    (iii) Accord amendments which meet the requirements of this 
paragraph (g) the same priority of right as the applications to which 
they pertain.
    (3) The area applied for in an amendment need not be adjacent to the 
area applied for in the original application.
    (4) Amendments not accorded pre-enactment explorer priority of right 
may be filed as new entrant amendments under Sec. 970.303.
    (h) Notification of amendments and new conflicts. The Administrator 
will:
    (1) No later than October 25, 1982, notify each reciprocating state 
of any amendment accorded pre-enactment explorer priority of right 
pursuant to paragraph (g) of this section and, in cooperation with such 
states, identify any new conflicts;
    (2) No later than October 27, 1982, notify each domestic applicant 
who is involved in a new conflict. The notice will:
    (i) Identify each applicant with whom each new conflict has arisen;
    (ii) Identify the coordinates of each area in which the applicant is 
involved in a new conflict;
    (iii) Indicate that the applicant may request from the Administrator 
the coordinates of each area included in an amendment accorded pre-
enactment explorer priority of right pursuant to paragraph (g) of this 
section, or for which notice has been received from a reciprocating 
state (such coordinates will be provided subject to appropriate 
confidentiality arrangements);
    (iv) Notify the applicant that he may, on or before November 16, 
1982, resolve the conflict voluntarily according to paragraph (f) of 
this section, and that on or after November 17, 1982, any unresolved 
conflict shall be resolved in accordance with paragraph (j) or (k) of 
this section, as applicable; and
    (v) In the case of an international conflict, include a copy of any 
applicable conflict resolution procedures in force between the United 
States and its reciprocating states pursuant to section 118 of the Act.
    (i) Government assistance in resolving international conflicts. If, 
by October 26 1982, the applicants have not resolved, or agreed in 
writing to a specified binding procedure to resolve, an original 
international conflict, or new international conflict, the 
Administrator, the Secretary of State of the United States, and 
appropriate officials of the government of the reciprocating state to 
which the other applicant involved in the conflict applied will use 
their good offices to assist the applicants to resolve the conflict. 
After November 16, 1982, any unresolved international conflicts will be 
resolved in accordance with paragraph (k) of this section.
    (j) Unresolved domestic conflict--(1) Procedure. (i) In the case of 
an original domestic conflict or a new domestic conflict, the applicants 
will be allowed

[[Page 323]]

until April 15, 1983, to resolve the conflict or agree in writing to 
submit the conflict to a specified binding conflict resolution 
procedure. If, by April 15, 1983, all applicants involved in an original 
or new domestic conflict have not resolved that conflict, or agreed in 
writing to submit the conflict to a specified binding conflict 
resolution procedure, the conflict will be resolved in a formal hearing 
held in accordance with Subpart I of 15 CFR Part 971, except that:
    (A) The General Counsel of NOAA will not, as a matter of right, be a 
party to the hearing; however, the General Counsel may be admitted to 
the hearing by the administrative law judge as a party or as an 
interested person pursuant to 15 CFR 971.901 (f)(2) or (f)(3); and
    (B) The administrative law judge will take such actions as he deems 
necessary and appropriate to conclude the hearing and transmit a 
recommended decision to the Administrator in an expeditious manner.
    (ii) Notwithstanding the above, at any time on or after November 17, 
1982, and on or before April 14, 1983, the applicants involved in the 
conflict may, by agreement, request the Administrator to resolve the 
conflict in a formal hearing as described above.
    (2) Decision principles for NOAA formal conflict resolution. (i) The 
Administrator shall determine which applicant involved in a conflict 
between or among pre-enactment explorer applications or amendments shall 
be awarded all or part of each area in conflict.
    (ii) The determination of the Administrator shall be based on the 
application of principles of equity which take into consideration, with 
respect to each applicant involved in the conflict, the following 
factors:
    (A) The continuity and extent of activities relevant to each area in 
conflict and the application area of which it is a part;
    (B) The date on which each applicant involved in the conflict, or 
predecessor in interest or component organization thereof, commenced 
activities at sea in the application area;
    (C) The financial cost of activities relevant to each area in 
conflict and to the application area of which it is a part, measured in 
constant dollars;
    (D) The time when the activities were carried out, and the quality 
of the activities; and
    (E) Such additional factors as the Administrator determines to be 
relevant, but excluding consideration of the future work plans of the 
applicants involved in any conflict.
    (iii) For the purposes of this paragraph (j) of this section, the 
word activities means the undertakings, commitments of resources 
investigations, findings, research, engineering development and other 
activities relevant to the identification, discovery, and systematic 
analysis and evaluation of hard mineral resources and to the 
determination of the technical and economic feasibility of commercial 
recovery.
    (iv) When considering the factors specified in paragraph (j)(2)(ii) 
of this section, the Administrator shall hear, and shall (except for 
purposes of apportionment pursuant to paragraph (j)(2)(v) of this 
section) limit his consideration to, all evidence based on the 
activities specified in paragraph (j)(2)(ii) of this section which were 
conducted on or before January 1, 1982, Provided, however, That an 
applicant must prove at-sea activities in the area in conflict prior to 
June 28, 1980, as a pre-condition to presentation of further evidence to 
the Administrator regarding activities in the area in conflict.
    (v) In making his determination, the Administrator may award the 
entire area in conflict to one applicant involved in the conflict, or he 
may apportion the area among any or all of the applicants involved in 
the conflict. If, after applying the principles of equity, the 
Administrator determines that the area in conflict should be 
apportioned, the Administrator shall (to the maximum extent practicable 
consistent with the Administrator's application of the principles of 
equity) apportion the area in a manner designed to satisfy the plan of 
work set forth in the application of each applicant which is awarded 
part of the area.
    (vi) Each applicant involved in the conflict must file an amendment 
to its application if necessary to implement

[[Page 324]]

the determination made by the Administrator.
    (k) Unresolved international conflicts. (1) If, by November 17, 
1982, all applicants involved in an original or new international 
conflict have not resolved that conflict, or agreed in writing to submit 
the conflict to a specified binding conflict resolution procedure, the 
applicants shall proceed in accordance with the conflict resolution 
procedures agreed to between the United States and its reciprocating 
states pursuant to section 118 of the Act.
    (2) Each applicant whose application is involved in an international 
conflict shall be responsible for actions required in the conduct of the 
conflict resolution procedures, including bearing a proportional cost of 
implementing the procedures, representing himself in any proceedings, 
and assisting in the selection of arbitrators if necessary.
    (l) Continued opportunity for voluntary resolutions. Each applicant 
may resolve any conflict by voluntary procedures at any time while that 
conflict persists.
    (m) Effect on priorities of new entrants. (1) A pre-enactment 
explorer is entitled to a priority of right over a new entrant for any 
area in which the pre-enactment explorer has engaged in exploration 
prior to June 28, 1980 if, with respect to that area, the pre-enactment 
explorer files an application in accordance with this part on or after 
January 25, 1982 and on or before the closing date for pre-enactment 
explorer applications established under Sec. 970.301(b).
    (2) Any amendment which is filed by a pre-enactment explorer on or 
before October 15, 1982, relates back to the date of filing of the 
original application and shall give the pre-enactment explorer priority 
of right over all new entrants if the amendment is accorded a pre-
enactment explorer priority of right under paragraph (g) of this 
section.

[47 FR 24948, July 8, 1982, as amended at 54 FR 548, Jan. 6, 1989]