[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
