continuing supervision by the appropriate State Party to the Treaty, and shall be conducted under 

 licenses issued to States Parties to the Treaty making application on behalf of their nationals and 

 non-governmental entities. When such activities are to be carried on by an international organization, a 

 license may be issued to such organization as if it were a State. 



Article 15 



It shall be the duty of the licensing authority referred to in Article 12 to act as promptly as possible 

 on each application for a license made to it. In issuing licenses and prescribing regulations, the licensing 

 authority shall apply all relevant provisions set forth in this Treaty and shall apply the following criteria: 



(a) The license issued by the licensing authority shall (i) cover an area of such size and dimension as 

 the licensing authority may determine, with due regard given to providing for a satisfactory return of 

 investment, (ii) be for a period of not more than fifty years, with the option of renewal, provided that 

 operations are conducted with the approval of the licensing authority, (Hi) require the payment to the 

 licensing authority of such fee or royalty as may be specified in the lease, (ivj require that such lease 

 will terminate within a period of not more than ten years in the absence of operations thereunder unless 

 the licensing authority approves an extension of the period of such license, and (vj contain such other 

 reasonable requirements as the licensing authority may deem necessary to implement the provisions of 

 this Treaty and to provide for the most efficient exploitation of resources possible, consistent with the 

 conservation of and prevention of the waste of the natural resources of the seabed and subsoil of ocean 



space. 



(b) If two or more States Parties to the Treaty apply for licenses to engage in the exploration of the 

 seabed and subsoil of ocean space or the exploitation of its natural resources in the same area or areas of 

 ocean space, the licensing authority shall, to the greatest extent feasible and practicable, encourage 

 cooperative or joint working relations between such States and be guided by the principle that ocean 

 space shall be free for use by all States, without discrimination of any kind, on a basis of equality of 

 opportunity. But, if it proves impractical for the license to be shared the licensing authority shall 

 determine which State Party to the Treaty shall receive the license with due regard given to the 

 encouragement of the development of the technologically developing States. 



(c) A coastal State has a special interest in the conservation of the natural resources of the seabed 

 and subsoil of ocean space adjacent to its territorial sea and continental shelf and this interest shall be 

 taken into account by the licensing authority. 



(d) A coastal State is entitled to take part on an equal footing in any system of research and 

 regulation for purposes of conservation of the natural resources of the seabed and subsoil of ocean space 

 in that area, even though its agencies or nationals do not engage in exploration there or exploitation of 

 its natural resources. 



(e) The exploration of the seabed and subsoil of ocean space and the exploitation of its natural 

 resources must not result in any unjustifiable interference with navigation, fishing, or the conservation of 

 the living resources of the sea, nor result in any interference with fundamental oceanographic or other 

 scientific research carried out with the intention of open publication. 



(f) A State or international organization holding a license is obliged to undertake, in the area covered 

 by such license, all appropriate measures for the protection of the living resources of the sea from 

 harmful agents and shall pursue its activities so as to avoid the harmful contamination of the 

 environment of such area. 



Article 16 



1. Subject to appropriate regulations prescribed by the licensing authority referred to in Article 12 

 and to the following provisions, a State or international organization holding a license shall be entitled to 

 construct and maintain or operate on the seabed and subsoil of ocean space installations and other 



VIII-99 



