560 NATIONAL OCEANOGRAPHIC PROGRAM LEGISLATION 



Mr. Fkantz. I think that is correct. Where the economic stakes 

 are high enough and the odds look good enough, they certainly do. 

 The oil companies are not seeking Federal help as far as I know in 

 financing offshore prospecting; in fact, midoubtedly they would not 

 welcome it. But I am sure there are other cases where, well, man- 

 ganese nodules is one resource that has been mentioned often. 



There is certainly considerable doubt at just which point the ex- 

 ploitation of this resource becomes economically feasible, but I think 

 the determination of this point can be made based on federally financed 

 exploraiton, prospecting, and gathering of knowledge. 



Mr. Dow. We do not have a bill or a Federal authority that au- 

 thorizes exploration and development of this sort on dry land, but ap- 

 parently in the sea the private entrepreneurs are not applying them- 

 selves as eagerly as they are on land and therefore you think that 

 there should be, that the exploration should be taken up by the Gov- 

 ernment through the means of incentives like you have here in this act 

 introduced by Mr. Keith ? 



Mr. Frantz. I do, sir. 



Mr. Dow. In other words, the Government needs to take a greater 

 proportion of the effort on its shoulders than you might say it does 

 normally on the land ? 



Mr. Frantz. I do, sir, simply because there may be a mile of water 

 between the operator and what he is looking for, and this encompasses 

 a whole technology which is relatively new, and the techniques of 

 which are developing. 



Mr. Dow. Thank you, sir. 



Mr. Caset. Thank you, Mr. Dow. 



Of course, I too, want to welcome you, Mr. Frantz, because, after 

 all, if we just hear the big industries and the big operators, why, some- 

 tim.es we might lose our perspective. 



As I understand it, you are now primarily in the design and manu- 

 facturing of equipment ; is that correct ? 



Mr. Frantz. That is correct, sir. 



Mr. Caset. And I presume your experience at Woods Hole led you 

 to realize that there needed to be someone in that field and so you struck 

 out on your own ; is that right ? 



Mr. Frantz. That is correct, sir. 



Mr. Casey. Well, I admire you for it and that is what makes this 

 country tick. 



I know you have made your statement very brief, which we appreci- 

 ate, and I think that possibly I want to follow up a little more on de- 

 fining your ideas as you expressed to Mr. Dow as to the Government's 

 proper role in prospecting, as you put it. 



Now, frorii your response to his questions I gather that you think 

 the Government might prospect to the extent of determining whether 

 they had enough deposits of a particular mineral to encourage private 

 industry to then bid for the rights or something of that nature ; is that 

 correct ? 



Mr. Frantz. The mechanism by which the private industry ex- 

 ploits this knowledge I am not prepared to make a statement on, but 

 I do believe, in fact, that up to the point where the knowledge be- 

 comes available the financing of this is, indeed, a proper role of 

 Government. 



