14 



strengthen the histitutional frameworks for both high seas and domestic fisheries 

 which are aimed at increasing economic return from heavily utiUzed species and 

 at providing incentives to expand catches of under utihzed species. 



The welter of conflicting, overlapping, and restrictive laws and regulations 

 applymg to fishing operations in U.S. coastal waters is a major impediment to 

 the expansion of our domestic industry. In view of the discouraging lack of coordin- 

 ation among state programs, the Commission concludes that Federal leadership 

 and guidance, and when necessary, regulatory power must be asserted. The 

 Commission has also recommended removal of present legal restrictions on the 

 use of foreign-built vessels by U.S. fishermen in U.S. domestic fisheries and an 

 intensive effort through the proposed National Oceanic and Atmospheric Agency 

 (BCF) to analyze each major fishery off U.S. coasts and to develop integrated 

 research, survey, and technical programs to exploit those fisheries where opportimi- 

 ties for expansion exist. 



B. AQUACULTURE 



Compared with activities elsewhere in the world, the practice of aquaculture in 

 in the U.S. is at a low level but is showing signs of rapid growth. Realizing the 

 potential of aquaculture will require overcoming certain legal and institutional 

 constraints as well as advancing scientific and technical knowledge to permit 

 production at competitive costs. The Commission concluded that aquatic culture 

 offers a valuable supplement to harvesting of natural stocks and that the National 

 Oceanic and Atmospheric Agency (BCF) should be given an explicit mission to 

 advance its practice. 



C. DRUGS 



The Conimission also recognized the public interest in evaluating the potential 

 of marine life as a source of new and useful medicinal materials and has recom- 

 mended formation of a new program within the National Institutes of Health to 

 effect a methodical inventory and evaluation. 



D. MINERAL RESOURCES 



1. Petroleum— Yov the foreseeable future, oil and gas will be the most valuable 

 minerals the nation can obtain from the sea. Currently, offshore sources account 

 for about 16 percent of total world oil recovery and are expected to provide a 

 third of total world production within 10 years. The search for new reserves is 

 stimulated by forecasts of tripled consumption within 20 years and by political 

 instability in some oil producing nations. 



Leasing and regulatory policies pertaining to U.S. outer continental shelf oil 

 reserves must be geared to a rate of development which reflects all aspects of the 

 national interest. The Commission urges a new assessment of the adequacy of the 

 Nation's oil reserves to provide a sound basis for shaping incentives to explore 

 and test the potential of new subsea fields. Further, in scheduling its lease sales 

 the Federal Government must give adequate consideration to industry's need 

 to plan its exploration and development programs in an orderly and effective 

 manner. 



2. Natural Gas. — With growing demand and with reserves declining in reference 

 to production, it is important to encourage exploration and development of new 

 sources of natural gas. The maximum price which transmission companies can 

 pay at the wellhead for gas is regulated by the Federal Power Commission, and 

 some adjustment might be desirable to reflect adequately the greater cost of 

 offshore production. Similarly, the transmission industry's research and develop- 

 ment activities are influenced by the FPC's accounting regulations, and it is 

 important that such regulations be clear and consistent with the transmission 

 industry's legitimate needs. 



3. Hard Minerals. — The marine mining industry is in its infancy. Excluding 

 shorebased operations, sulphur wells, recovery of chemicals from sea water, and 

 dredging for sand, gravel, and oyster shells, total worldwide production of hard 

 minerals from the seabed is estimated to total only $50 million currently. How- 

 ever, world demand for many key minerals is expected to double by 1985 and 

 triple by 2000, and it is essential that the United States encourage an increasing 

 rate of discovery to ensure an adequate and dependable supply. The long lead 

 time which will be required to define and appraise miineral resources and to de- 

 velop the technology for their recovery requires orderly action now to establ.sh 

 the basis for future mining activity. The primary needs are for preinvestme^nt 

 geological surveys, development of fundamental technology relevant to minerals 

 exploration and exploitation, and greater flexibility in the leasing provisions for 

 the Outer Continental Shelf Lands Act of 1953. 



