[Code of Federal Regulations]

[Title 15, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR970.302]



[Page 320-323]

 

                  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 321]]



    (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 322]]



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 323]]



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]