306 • Marine Minerals: Exploring Our New Ocean Frontier 



jurisdiction is based on the power of the United States 

 to regulate the activities of its citizens outside its ter- 

 ritory. 



Licenses for exploration and permits for commercial 

 recovery are granted by the Administrator of the Na- 

 tional Oceanic and Atmospheric Administration for 

 areas whose size and location are chosen by the appli- 

 cant. The applicant must prove financial and techno- 

 logical capability to carry out the proposed work, and 

 the designated area must comprise a "logical mining 

 unit." The Administrator is required to prepare an envi- 

 ronmental impact statement prior to granting a license 

 or permit. To help gauge the effects of mining on the 

 marine environment, stable reference areas are to be 

 established by international agreement. Permits and 

 licenses are conditioned on protection of environmental 

 quality and conservation of the mineral resource. 



Because the United States does not claim ownership 

 of the seabed or minerals involved, DSHMRA does not 

 require rent or royalties. Only an administrative fee, 

 sufficient to cover the cost of reviewing applications, is 



charged. In addition, a 3.75 percent tax on the value 

 of the resource recovered is levied. Proceeds of the tax 

 are assigned to a trust fund to be used if U.S. contribu- 

 tions are required once an international seabed treaty 

 is in effect. 



All commercial recovery must be by vessels docu- 

 mented under U.S. law. At least one U.S. vessel must 

 be used to transport minerals from each mining site. 

 Land processing of recovered minerals must be within 

 the United States unless this requirement would make 

 the operation uneconomical. Minerals processed else- 

 where must be returned to the United States for domes- 

 tic use if the national interest so requires. 



Before the United States ratifies an international 

 seabed treaty, DSHMRA calls for reciprocal agreements 

 with nations that adopt compatible seabed regulations. 

 The agreements would require mutual recognition of 

 the rights granted under any license or permit issued 

 by a reciprocating state. The United States has signed 

 agreements with France, Italy, Japan, the United King- 

 dom, and West Germany. 



