1998 Year of the Ocean Ocean Energy and Minerals 



Ocean Thermal Energy Conversion Act ,(42 U.S.C. § 9101 et seq.) 



With regard to alternative energy sources from the ocean, the Ocean Thermal Energy Conversion 

 Act (OTEC Act), 42 U.S.C. § 9101 et seg., established a licensing program for facilities and 

 plantships that would convert thermal gradients in the ocean into electricity. The OTEC Act 

 directed the Administrator of the National Oceanic and Atmospheric Administration (NOAA) to 

 establish a stable legal regime to foster commercial development of OTEC. In addition, the 

 OTEC Act directed the Secretary of the department in which the U.S. Coast Guard is operating to 

 promote safety of life and property at sea for OTEC operations, prevent pollution of the marine 

 environment, clean up any discharged pollutants, prevent or minimize any adverse impacts from 

 construction and operation of OTEC plants, and ensure that the thermal plume of an OTEC 

 plantship does no unreasonably impinge on and thus degrade the thermal gradient used by any 

 other OTEC plantship or facility, or the territorial sea or area of national resource jurisdiction of 

 any other nation unless the Secretary of State has approved such impingement after consultation 

 with such nation. The OTEC Act also assigned responsibilities to the Secretary of State and the 

 Secretary of Energy regarding OTEC plants. 



There has been a low level of activity under the OTEC Act since its passage in 1980. Following 

 NOAA's initial environmental studies and implementation of a licensing program, NOAA has 

 not received any license applications for OTEC facilities or plantships. The availability and 

 relatively low prices of fossil fuels, coupled with the risks to potential investors, has limited the 

 interest in commercial development of OTEC projects. The need to protect the environmental 

 quality of ocean resources and ecosystems may outweigh the benefits of constructing OTEC 

 facilities in certain areas. Moreover, OTEC projects have offered an unclear return on a 

 significant investment. 



III. FEDERAL AUTHORITIES RELATING TO MINERAL RESOURCES 



The oceans contain valuable deposits of sand, gravel, and other minerals. Among other things, 

 OCS sand deposits are important sources for beach renourishment for many coastal communities. 

 As land supplies of sand and gravel become less available, industry is turning to the OCS as an 

 alternate source of these important building materials. The OCS also contains deposits of 

 strategic minerals such as gold, titanium and other metals which will become more important as 

 an alternate source to land deposits. 



The MMS' marine minerals program manages exploration and development activities for federal 

 offshore sand, gravel, and shell, and other mineral resources found on the OCS. The program has 

 focused on six areas: (1) manganese crusts offshore Hawaii and Johnston Island (2) phosphorites 

 offshore North Carolina, (3) heavy mineral placers and phosphorites offshore Georgia, (4) sand 

 resources offshore the gulf coast states and the Atlantic, (5) heavy mineral placers offshore 

 Alaska, and (6) black sand deposits offshore Oregon. The principal legal authority for the 

 development of these resources falls under the OCSLA. 



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