15i 



Approximate Delineation of Con- 

 tinental Shelves and Intermediate 

 Zones as Proposed 



the International Registry Authority which 

 the United States is obligated to pay to the 

 Authority. The business entity on whose be- 

 half a claim to exploit is registered should 

 pay to tlie Ignited States the portion of the 

 value of tlie extracted minerals which the 

 United States is obligated to pay to the Inter- 

 national Registry Authority on behalf of the 

 International Fund. 



This latter payment should take the place 

 of both the fixed annual rent per acre or 

 square mile and the royalty on the value of 

 production which must now be paid under 

 mineral leases on the outer continental shelf. 

 In this way, the rights of the international 

 community to the mineral resources of the 

 deep seas will be recognized without unduly 

 burdening U.S. private enterprise. 



The payments for the International Fund, 

 which the U.S. representative on the Inter- 

 national Registry Authority will participate 

 in fixing, may be greater or less than the 

 combined rents and royalties paid for the 

 same mineral value extracted from the out«r 

 continental shelf. In the intermediate zone, 

 such differences probably would be reflected 

 in different levels of competitive bidding. 



Additional Policies Concerning Claims in 

 the Intermediate Zone If competitive bid- 

 ding is employed by the Secretary of the 

 Interior, as would be generally equitable be- 

 cause the United States is disposing of its 

 valuable right of exclusive access, the claim 

 to explore should be registered on behalf of 

 the first resix)nsible qualified business entity 

 that applies therefor. Upon discovery, the 

 registered claim to explore should be con- 

 verted into a claim to exploit on behalf of the 

 resix)nsible qualified business entity that bids 

 the highest cash bonus, or percentage of 

 profits, therefor. 



If competitive bidding is not employed, as 

 will sometimes be the case upon adoption of 

 our prior recommendations to encourage min- 

 eral resources exploration (see page 137), the 

 claim to explore should be registered on be- 

 half of the first responsible qualified busi- 

 ness entity that applies therefor. Upon dis- 

 covery, the registered claim to explore should 

 be converted into a claim to exploit on behalf 

 of that same entity. 



