Deep Seabed Mineral Resources Act

(Reported to Senate from the Committee on Foreign Relations with amendments, S. Rept. 95-1180)

Deep Seabed Mineral Resources Act - Declares that the purposes of this Act are to: (1) encourage the signing of a comprehensive Law of the Sea Treaty, or, failing that, the negotiation of multilateral treaties or other international agreements, to give legal definition to the principle that the hard mineral resources of the deep seabed are the common heritage of mankind and to assure nondiscriminatory access to such resources for all nations; (2) establish an interim program to encourage and regulate the exploration for and commercial recovery of such resources by United States citizens; (3) accelerate the program of environmental assessment of such activities and assures that they are conducted so as to conserve such resources, protect the environment, and promote the safety of life and property at sea; and (4) provide domestic tax treatment for United States citizens conducting such activities authorized by the United States or reciprocating states pursuant to this Act.

Declares the sense of Congress that this Act be transitional, pending conclusion of specified international treaties or agreements.

Disclaims United States sovereignty or exclusive rights over, or ownership of, any areas of the deep seabed.

Requires the Secretary of State to report to Congress annually on the progress toward such treaty or agreement and to recommend legislation helpful to its conclusion.

=Title I: Regulation of Exploration and Commercial Recovery by United States Citizens= - Prohibits exploration and commercial recovery activities in the deep seabed by United States citizens except: (1) under a license or permit issued pursuant to this Act; (2) under an equivalent authorization issued by a reciprocating state; or (3) under international agreement which is in force with respect to the United States.

Exempts from such prohibitions: (1) scientific research; (2) mapping, or the taking of measurements or samplings which do not significantly alter the deep seabed or affect the environment; (3) the design, construction, or testing of equipment and facilities which will or may be used for exploration or commercial recovery, but which is conducted on shore or does not involve the recovery of any but incidental hard mineral resources; (4) the furnishing of machinery, products, supplies, services, or materials for any exploration or commercial recovery activity; and (5) activities, other than exploration or commercial recovery activities, of the Federal Government.

Allows United States citizens engaged in exploration before the effective date of this Act to continue: (1) if such citizens apply for a specified license; and (2) until such license is issued or denied and a final administrative or judicial decision reached.

Authorizes the Secretary of the Interior to issue licenses for exploration and permits for commercial recovery in accordance with prescribed criteria.

Prohibits the Secretary from issuing such licenses or permits under specified conditions. Requires permittees to use: (1) for actual commercial recovery or processing at sea of hard mineral resources, vessels constructed in the United States and documented under the laws of the United States; and (2) for the transportation from the mine site of recovered hard mineral resources, a minimum of one vessel documented under the laws of the United States. States that, for purposes of United States shipping laws, mining and transportation vessels are deemed to be in the foreign trade of the United States.

Requires that such processing shall take place only in the United States or aboard vessels constructed in the United States and documented under United States law, unless the Secretary finds that: (1) processing elsewhere is necessary to the economic viability of the enterprise; and (2) the permittee assures that such processed resource will be used in the United States, if the Secretary so demands in the national interest.

Sets forth procedures to be followed in processing license and permit applications. Requires, as part of such application, the submission of a work plan including specified information. Allows the applicant to select the size and location of the work plan area, which shall be approved unless the Secretary finds that: (1) the size of the area is not a logical mining unit; or (2) commercial recovery activities in the proposed location would result in a significant adverse impact on the quality of the environment which cannot be avoided by the imposition of reasonable requirements. Defines "logical mining unit" for both license and permit purposes. Provides that such areas for permits shall not be larger than is necessary to satisfy permittees' estimated production requirements over the initial 20-year terms of the permits.

Establishes priority of right for the issuance of licenses, subject to certain conditions, on the basis of the chronological order in which license applications which are in substantial compliance with specified requirements are filed with the Secretary. Provides that such priority shall not be lost in the case of any application filed which is in substantial but not full compliance, but which the applicant thereafter brings into full compliance within a reasonable period prescribed by the Secretary.

Requires the Secretary, before certifying such applications, to find in writing, after consulting with other departments and agencies, that: (1) the applicants have shown that, upon such issuance or transfer, they will have the appropriate financial responsibility and technological capability; and (2) the proposed work plan meets appropriate requirements.

Requires the Attorney General and the Federal Trade Commission (FTC) to conduct what they consider to be an appropriate antitrust review of all such applications and authorize them to make appropriate recommendations to the Secretary. Prohibits the Secretary from acting on such applications during the 90-day period prescribed for such recommendations. Requires the Secretary to notify the Attorney General or the FTC prior to acting counter to their antitrust recommendations, giving reasons for such decision. Stipulates that issuance or transfer of such licenses or permits shall not be defenses for violation of antitrust laws.

Provides for a 60-day review of such applications by other affected Federal agencies.

Provides for public notice of, public comments on, and a hearing on such applications.

Provides that, to the maximum extent practicable, all review periods should run concurrently from the date of submission of the application.

Requires payment of a reasonable administrative fee, including environmental impact statement costs, with each application.

Requires the Secretary, to the maximum extent possible, to complete certification action within 180 days of submission or, if that is not possible, to notify the applicant of the reasons for the delay.

Requires the Secretary to incorporate the terms, conditions and restrictions within the issued license or permit. Allows the licensee or permittee 60 days within which to object to any such terms. Provides for judicial review of the Secretary's determinations in such matters.

Authorizes the Secretary, after consultation with interested agencies and the licensee or permittee, to modify such terms to protect the quality of the environment or promote safety at sea, unless the Secretary determines on the basis of substantial evidence and after affording the opportunity of an agency hearing on the record, that the damage, if any, caused by such modification to the national interest in obtaining such resources substantially outweights protection of the quality of the environment intended to be accomplished by the proposed modification. Authorizes the Secretary to also modify such terms to avoid: (1) a conflict with any international treaty or convention obligation of the United States, except any concerning deep seabed mineral resources, as determined in writing by the President; or (2) any situation which might lead to a breach of international peace or security, as determined in writing by the President.

Requires the Secretary to consult with any affected Regional Fishery Management Council if there would be an adverse impact on any fishery within the Fishery Conservation Zone, or any anadromous specie or Continental Shelf exclusive management authority of the United States beyond such zone.

Provides for denial of issuance, suspension, and revocation of licenses and permits, as well as suspension and modification of activities.

Requires the Secretary to publish in the Federal Register and give the applicant, licensee, or permittee written notice of intention to deny, suspend, modify, or revoke and the reason therefor, and to allow a reasonable time for correction of deficiencies. Provides for administrative and judicial review.

Sets forth performance requirements.

Requires the Administrator of the National Oceanic and Atmospheric Administration to expand and accelerate the environmental assessment of exploration and commercial recovery activities to provide the Secretary with an accurate evaluation of such environmental impact.

Requires the Secretary and the Secretary of Commerce, acting through the National Oceanic and Atmospheric Administration, to establish terms which prescribe the actions the licensee or permittee shall take to assure protection of the environment, health and safety, including the use of the best available technologies, except where the incremental benefits are clearly insufficient to justify the incremental costs of such use. Requires the Secretaries to consult with the Administrator of the Environmental Protection Agency, the Secretary of State, and the Secretary of the department in which the Coast Guard is operating before establishing such terms.

Provides for programmatic environmental impact statements under specified conditions.

Stipulates that the issuance, but not the certification, of any license or permit shall be deemed to be a major Federal action significantly affecting the quality of the human environment for purposes of the National Environmental Policy Act of 1969. Requires that the draft and final environmental impact statements prepared pursuant to such Act be published, with specified terms, conditions, and restrictions, within certain time periods.

Requires the Secretary to establish, and include in each license or permit, terms which have due regard for the conservation of natural resources.

Provides for prevention of interference with other uses of the high seas and for safety of life and property at sea.

Provides for audits and public disclosure of licensee and permittee records. Establishes criminal penalties for knowingly and willfully revealing trade secrets or other confidential or proprietary data required to be kept confidential by this Act.

Mandates monitoring of licensees' and permittees' activities by appropriate Federal officers.

Provides for relinquishment, surrender, and transfer of licenses and permits.

Provides that any person may seek equitable relief in a civil action against any alleged violator of this Act or a license or permit, or against the Secretary for alleged failure to perform duties under this Act. Requires 60 days prior notice to the Secretary and the alleged violator.

Provides that all vessel safety and environmental requirements shall be in addition to other requirements of law.

Stipulates that, for purposes of this Act, any commercial recovery or exploration vessel or other floating craft shall not be included within the exempted category of "vessels or other floating craft" under the Clean Water Act, and thereby subjects discharges from all such vessels to pollutant regulation through the National Pollution Discharge Elimination permit program.

Sets forth procedures for designating reciprocating foreign states in order to allow mutual recognition of licenses and permits issued by each nation. Requires the Secretary to immediately notify all reciprocating states of any application for a license or permit. Authorizes the President to negotiate international agreements necessary to implement the reciprocating state provisions of this Act.

=Title II: Transition To An International Agreement= - Declares the intent of Congress that: (1) any international agreement should provide assured and nondiscriminatory access, under reasonable terms, to the hard mineral resources of the deep seabed for United States citizens and recognize the rights of such citizens who have undertaken exploration for, or commercial recovery of, such resources under this Act to continue under substantially similar terms or in a manner that does not impair the value of such investments; (2) the extent to which an international agreement conforms to such requirements should be determined by the totality of its provisions, including specified features; and (3) this Act should be transitional pending specified agreements or treaties.

Stipulates that provisions of this Act not inconsistent with any subsequent international agreement shall continue in full force.

Directs the Secretary, in consultation with the Secretary of State, to insure, consistent with such international agreement, that the integrity of investments made by United States citizens is protected. Requires the Secretary to report, within one year of such international agreement, on such actions taken, describing the status of United States citizens' operations under such agreement and assessing the extent: (1) to which such citizens have been permitted to continue under substantially similar terms; or (2) to which their investments have been impaired.

=Title III: Enforcement Authority= - Sets forth: prohibited acts; civil and criminal penalties, liabilities, forfeitures, and procedures; responsibilities and powers of enforcement officers and personnel; protection of proprietary and privileged information; and jurisdiction of the courts.

Limits the amount of the civil penalty to $25,000 for each violation.

=Title IV: Miscellaneous Provisions= - Requires the Secretary to consult with the Secretary of Commerce (acting through the National Oceanic and Atmospheric Administration), other interested federal agencies, interested parties, and the public in preparing proposed and final regulations.

Authorizes the Secretary to amend such final regulations to provide for conservation of natural resources, protection of the environmental, and safety at sea. Provides that such amended regulations shall only apply if no serious or irreparable economic hardship is imposed, for conservation of natural resources, on the licensee or permittee.

Requires that such regulations be consistent with certain Federal environmental laws.

Requires the Secretary to report annually to Congress on the administration of this Act.

Authorizes necessary appropriations to the Secretary to carry out this Act.