-A mineral explorer could obtain a permit for 

 exclusive rights to explore a large area-say 100 

 square miles— on application. A large area under 

 permit is essential in the beginning because any 

 type of an anomaly would likely encompass a large 

 search area. All minerals except oil, gas, and 

 sulphur would be included. 



—The permittee would be required to pay at least 

 a nominal rental of $50 to $100 per square mile 

 per year for the area held. Main purpose of the 

 rental fee would be to discourage speculative 

 holdings. 



—Permittee would be required to do a minimum 

 amount of work each year and would be required , 

 to turn back half the original area at the end of the 

 first year, half the remaining area at the end of the 

 second year, and so on. The minimum work 

 obligation would increase on a sliding scale each 

 year. The permittee would have the option of 

 turning back the entire remaining parcel at any 

 time. 



—In the event of a mineral discovery, the per- 

 mittee could convert all or any portion of the 

 remaining permit area into a lease to exploit 

 without competitive bidding. The lessee would 

 have the right to extract any of all minerals 

 present except oil, gas, or sulphur. 



-Lessee would be required to pay rental on the 

 land and royalty on the gross value of minerals 

 produced at the lease. Royalty and lease term 

 would be negotiated. 



-Upon expiration of the lease term renewal could 

 be applied for if the deposit showed promise of 

 future production. Otherwise the property would 

 revert to the Government. 



Offshore mining is most likely to start in 

 shallow water near the shore in areas under State 

 jurisdiction, and extend into deeper water as 

 technology advances. A deterrent to nearshore 

 exploration and mining is that the regulations of 

 various States relative to offshore mining, where 

 they exist, differ significantly. Some coastal 

 States apparently do not have provisions for 

 issuing offshore exploration permits. 



A National Conference of Coastal States was 

 called to meet on Dec. 11-13, 1968, in Portland, 

 Oregon. Representatives of a number of industries 

 interested in coastal waters also participated in the 



conference. The purpose of the conference was to 

 develop specific guidelines on hard mineral mining 

 from submerged lands under state control. The 

 results of the conference were unavailable as this 

 report went to press. However, it is hoped that the 

 conference considered and recommended action 

 on the problem of providing a permit system that 

 would clarify and safeguard the mineral explorer's 

 rights in areas under State jurisdiction. If the 

 action discussed above was not taken, the panel 

 makes the following recommendation: 



Recommendation: 



The Department of the Interior, in concert with 

 representatives of the mining industry, should 

 develop a model system for assigning minerals 

 exploration and development rights along the lines 

 recommended above, for consideration by the 

 States. The appropriate Federal agency should 

 sponsor a convention of coastal States to consider 

 the model and other legal and economic problems 

 of offshore mining. 



Sulphur and other types of hard minerals may 

 occur in the continental slopes as well as in the 

 shelves. The slopes between the 200 and 2500 

 meter contours around the United States include 

 about 479,000 square statute miles. Under the 

 existing international regime the mineral ex- 

 ploiter's rights are not clearly protected in the area 

 seaward of the 200 meter isobath, and this may 

 eventually be a deterrent to offshore mineral 

 exploitation. 



Recommendation : 



An international legal regime is needed that will 

 provide protection for the mineral exploiter in 

 waters seaward of the 200 meter isobath. A regime 

 that the panel believes to be satisfactory is 

 described in detail in the report of the Interna- 

 tional Panel. 



The location of our boundaries with adjacent 

 nations on the continental shelves and slopes has 

 not been defined. Lack of definition of these 

 boundaries will eventually lead to dispute when 

 marine mining becomes feasible. 



Recommendation : 



The Federal Government should take the neces- 

 sary steps as soon as possible to determine its 

 offshore boundaries with adjacent nations. 



Vll-94 



