UNITED NATIONS THIRD CONFERENCE ON THE LAW OF THE SEA, FIRST COMMITTEE, BELGIUM, DENMARK, FRANCE, GERMANY, FEDERAL REPUBLIC OF, ITALY, LUXEMBOURG, NETHERLANDS, UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: WORKING DOCUMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00697R000300010009-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 12, 2016
• Document Release Date: July 15, 2002
• Sequence Number: 9
• Publication Date: August 16, 1974
• Content Type: PAPER

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UNITED NATIONS
Distr.
LIMITED
Prospecting, evaluation and exploitation in the International Sea-bed Area of
the resources referred to in article VI shall be subject to the conditions set
out in this annex.
(ii). Prospecting means a general survey of a large area with a view to collecting
data on the basis of which a determination can be made as to specific areas
meriting evaluation. Prospecting may include all work involving geophysical
and geochemical surveys and sea-bed sampling, excluding drilling deeper than
50 metres.
(iii) Evaluation means work, following prospecting, involving the use.. of
considerable technical and financial means in order to confirm the existence.,
to evaluate the consistency and to demonstrate the,exploitability of the
resources of a specific area.
Exploitation means the extraction of resources for commercial and
industrial purposes from a specific area.
THIRD CONFERENCE
ON THE LAW OF THE SEA
A/-CONF.62/C.1/L.8
16 August 1974
ORIGINAL: ENGLISH AND FRENCH
Belgium, Denmark, France, Germany, Federal Republic of, Italy ,
Luxembourg, Netherlands, United Kingdom of Great Britain and
Northern Ireland: working document. Annex to the Law of the
Sea Convention: conditions of exploration and exploitation
(Circulated in accordance with the decision taken b the Committee
at its informal meetin on 16 August 1974_
In the view of the delegations co-sponsoring this working paper it is essential for
conditions of exploration and exploitation to be included in any Law of the Sea
Convention.
While this paper does not necessarily represent the final views of its co-sponsors,
either as to substance or as to placement of the conditions, it is an illustration of
the kind of conditions that would need to be included in the Convention. It is not a
comprehensive and detailed set of conditions and is merely intended as an aid to the
Committee's work on this subject.
Definition of activities
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Ii. Prospecting
(i) Prospecting shall be open in the international. Sea-bed Area, other than in
areas in respect of which contracts have been awarded in accordance with
article III, subject to a detailed declaration being made to the. Authority
by the entity wishing to carry out prospecting.
(ii) The declaration shall indicate the area in which it is planned to carry out
prospecting. The declaration shall be effective for two years and may be
renewed. It shall not give any exclusive right in respect of the area.
(iii) The declaration shall cease to be effective as regards any part of the
prospecting area concerned which becomes an area in respect of which a
contract has been awarded.
(iv) The entity shall inform the Authority of the results of the prospecting
undertaken. The results shall be held confidential by the Authority.
III. Award of contracts
(i) The Authority shall award contracts, in accordance with the procedure set out
in paragraph (iii) below, giving an entity or group of entities the exclusive
right to undertake the evaluation and exploitation (as defined in article I)
of resources in a specific area.
(ii) In the case of a group of entities, they shall designate one of them who will
represent them with respect to the Authority and who will exercise powers and
accept responsibility on behalf of the group.
(iii) The Authority 1/ shall award contracts pursuant to the procedure set out below.
An application for a contract in respect of the evaluation and exploitation
of a category, or categories, of resources in a specific area may be submitted
to the Authority, except as regards an area in respect of which a contract
has already been awarded with respect to the category, or categories, of
resources referred to in the application.
The application shall include all relevant data, including results of
prospecting for the resources in question in the particular area carried
out by or on behalf of the applicant.
Such data contained in the application received by the Authority shall be held
confidential. On receipt of the application the Authority shall award a
contract provisionally to the applicant, provided the limitation specified in
article IV is not exceeded. The award of such a contract shall be-publicized
immediately after it has been made. Provided that no competing application is
received within one month after such publication the award of the contract
shall become definitive.
1/ An organ of the Authority to be agreed upon.
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In the event that competing applications are received, the Authority
shall reconcile such applications on the basis of the following
objective criteria (to be determined). 1/
IV. Maximum number of contracts
An applicant may not hold more than six contracts at any one time in
respect of each category of resources.
V. Assignment of contracts
In the case of an assignment the terms and conditions of the contract
of the assignor shall continue to apply to the assignee.
VI. Categories of resources
Contracts shall be awarded for one or both of the two following categories
of resources:
liquid and gaseous hydrocarbons, helium,.carbon dioxide and.
geothermal energy.
(ii) any mineral substance, in particular polymetallic and phosphate
nodules.
VII. Size of areas
Areas, delimited by meridians and parallels according to a grid system
drawn up by the Authority, shall, before the relinquishment referred to
in article IX, have a maximum surface of:
U)
9,000 sq. kms. in the case of the resources referred to in
article.VI (i) and,
(ii) 6o,ooo sq. kms. in the case of the resources referred to in
article VI (ii) above..
VIII. Duration
(1)
Contracts shall have a duration of 30 years. They shall thereafter
be'renewed every 10 years if the contractor so requests, for a
maximum period of 50 ; years
(ii) An area in respect of which acontract has been awarded shall be freed
of any exclusive right:
J Proposals on this subject will be submitted by the co-sponsors in due course.
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a-G the cnu of she ..ontract period or of a renewal period, if no
further renewal period is requested in accordance with paragraph (i)
(iii) Parts of an area relinquished or renounced shall likewise be freed of
any exclusive right.
IX. Relinquishment and renunciation
(i) The contractor shall relinquish one third of the area in respect of which
it has been awarded a contract before beginning any exploitation.
(ii) The contractor may at any time renounce the whole or part of the area
in respect of wnich it has been awarded a contract.
(iii) Relinquishment or renunciation shall be carried out on the basis of the
grid system referred to in article VII.
(iv) The Authority, within a period of three months after relinquishment or
renunciation, shall publ5cize the areas, or parts of areas, which have
been relinquished or renounced.
X. Work requirement
(i) The applicant shall undertake:
- to spend ... each year prior to exploitation (levels of expenditure, on
a graduated scale, to be worked out)
- to begin exploitation within a period not longer than 10 years after the
award of the contract and
- not to interrupt exploitation for more than 3 years, except in the case
of force majeure, proof of which shall be submitted to the Authority.
(ii) In the event of an infringement of the obligations provided for in
paragraph (i) the Authority shall give written notice to the contractor
specifying the infringement and giving the contractor a reasonable period,
in any case not less than six months, to remedy the infringement. If the
infringement is not remedied within the period specified then the Authority
shall terminate the contract on giving six months written notice to the
contractor. If the contr;:.ctcr challenges the ground of termination,
termination shall only take place in accordance with a decision given by
the tribunal eotablished under article ... of the Convention.
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XI. Participation of nationals of counti?iej without sea-bed exploration and
exploitation capability
The applicant shall indicate in his application the steps to be taken in order to
ensure the participation in the activities envisaged of nationals of countries without
sea-bed exploration and exploitation capability, with a view to ensuring the training
of such nationals.
XII. Non-interference with other activities
(i) The work undertaken and safety zones established round installations and
devices pursuant to article XV (ii), and in general activities exercised
within the framework of this annex, shall not impede in an unjustifiable
way the exercise of other lawful activities.
(ii) If. areas relating to different categories of resources totally or partially
overlap, each contractor shall exercise its respective activity in such way
as not to impede in an unjustifiable way the activity of any other
contractor.
XIII. Regulatory arrangements
(i) The necessary measures shall be taken to:
(a) protect the installations and devices referred to in article XV (i)
(b) enforce technical rules, particularly with a view to the maximum
exploitation of resources, compliance with security measures, and
protection of the environment.
(ii) The Authority shall be notified of the measures taken i.n,.implementation-of
paragraph (i).
(iii) (Questions of private law).
} The contracts awarded by the Authority shall contain provisions relating
to the safety of human life, the protection of the environment and
non-interference with legitimate uses of the sea.
XIV. Inspection and supervision information to be supplied to the Authority
(i) The Authority shall be entitled to carry out inspection and supervisory
measures, in accordance with the terms of the contract, in order to ensure
that work is undertaken in conformity with this Convention and its annexes.
(ii) The contractor shall place at the disposal of the Authority any information
concerning resources it has collected during work carried out in an area.
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XV. Installations and devices and safety zones
(i) For the purpose of this annex "installations and devices" means:
(a) platforms and other fixed devices, as well as their attachments
(b) ships, marine installations and floating devices and
(c) underwater habitats and vehicles, either floating, standing on, or
moving over, the sea-bed
which are used for the purposes of evaluation or exploitation.
(ii) A "safety zone" shall be established around the installations and devices
referred to in paragraph (i) (a), up to a distance of 1,000 metres measured
horizontally from each point of the external limit of such installations
and devices.
XVI. Marking of installations and devices and publicity to be given to nautica
information
(i) Marine marking of installations and devices and safety zones shall be
established and maintained, in conformity with international rules.
(ii) Appropriate publicity shall be given to nautical information relating to
evaluation and exploitation.
Financial arrangements
To be determined.
Settlement of disputes
To be determined.
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