App. D— Ocean Mining Laws of Other Countries • 315 



seismic and core-sampling techniques and limited 

 bulk sampling by dredger (up to 1 ,000 tonnes over 

 the period of the licence). The license fee charged 

 by the Crown Estate is on a sliding scale depend- 

 ing on the size of area. Exploration licences are 

 nonexclusive and are normally renewable.'' 



• Exploitation: Licenses are granted on a continu- 

 ing basis but may be terminated at 6 months' no- 

 tice. They are expressed to be nonexclusive but as 

 far as possible each area is granted to a single oper- 

 ator. A maximum annual removal limit is stipu- 

 lated. Royalties are payable on the actual quan- 

 tity removed from the seabed but a dead rent of 

 20 percent of the maximum permissible tonnage 

 multiplied by the current royalty rate is charged 

 whether or not any material is removed. Royalty 

 rates are reviewed periodically but are indexed in 

 the Retail Price Index in the intervening years. The 

 current royalties represent about 5 percent of the 

 selling price of the material at the wharf of land- 

 ing."" 



Conditions 



• Exploration: Drilling and sampling near cables is 

 restricted. "Unjustifiable interference" with navi- 

 gation, fishing or conservation of living resources 

 is prohibited. The company must provide the Com- 

 missioners with reports on operations and a full re- 

 port on prospecting results including geophysical 

 profiles. 



• Exploitation: An applicant must have held a 

 prospecting license for the area. According to the 

 1977 Code of Practice, an applicant must have the 

 necessary vessels, facilities, etc. to undertake work. 

 The license specifies the maximum annual quan- 

 tity to be dredged, and safety provisions. Licenses 

 may be terminated by either party at 6-months' 

 notice. 



The Government View procedure is intended to re- 

 solve ocean use conflicts. Special attention is given to 

 potential conflicts between fishing and mining in the 

 Code of Practice. The government recognizes that both 

 industries "are legitimately exploiting the sea's re- 

 sources." Therefore, it does not give special priority to 

 any particular activity; for instance, the MAFF does not 

 object to a mining license solely because it involves a 

 fishery area."' 



Activities 



Sand and gravel dredging is a fairly well established 

 activity, dating back to the mid-1920s."^ The attached 

 table gives details on production at different mining 

 sites. In 1985, marine sources provided about 14 per- 

 cent of Britain's sand and gravel needs. 



New Zealand 



Laws 



• New Zealand claims a 12-mile territorial sea."^ 



• New Zealand declared its continental shelf in 

 1964."* 



• New Zealand declared an EEZ on September 6, 

 1977 with Act No. 28. Enactment of implement- 

 ing legislation is pending international confirma- 

 tion of the Law of the Sea Treaty."^ 



• Legislation is currently being reviewed on a low- 

 key basis by the Minister of Energy's office; a re- 

 port to the ministers is pending."* 



Jurisdiction 



Continental shelf: The Minister of Energy has exclu- 

 sive authority to issue prospecting and mining licenses 

 for minerals in the seabed or subsoil of the continental 

 shelf"' 



Permit Process 



Exploration and exploitation: Interested companies 

 apply to the Minister of Energy and so long as they meet 

 sill the requirements, will be awarded a license. The 

 company must show that it meets all the requirements 

 by submitting a project assessment with its application 

 (e.g., environmental assessment). The concerned agen- 

 cies will become involved in the review process, but the 

 company only deals directly with the Minister of 

 Energy."" 



Terms 



Exploration and exploitation: To date, only one 

 prospecting license has been issued, so few precedents 

 have been set. However, the granting process is likely 

 to closely parallel that for oil and gas. Prospecting and 



^^Foreign and Commonwealth Office, op. cit. 



"°Ibid. 



"Ibid., p. 11. 



"^D. Pasho, p. 10. 



"Law of the Sea Bulletin, 1983, op. cit., p. 62. 

 "Ibid. 



"Mr. Pat Helm, New Zealand Embassy, and officials in Wellington, New 

 Zealand, letter to OTA, Aug. 1, 1986. 

 "Ibid. 



"New Zealand Continental Shelf Act, 1964, No. 28, Section 5 

 "Ibid. 



