ownership of shoreline properties and rights within 
the tidal zone. There is confusion regarding the 
seaward extensions of the boundaries between 
States. A clear agreement between Federal and 
State governments as to responsibility for man- 
aging and developing fisheries within the three-to- 
twelve mile zone also is lacking. 
The unsatisfactory status of the Nation’s 
marine boundaries and the Federal Government’s 
responsibility to take the lead in its clarification 
has long been recognized. The problem can be 
deferred no longer. A waiting policy operates only 
to discourage private investment and to complicate 
resolution of claims in areas where investments 
have been staked. 
The panel endorses the recommendation for 
solving marine boundary problems proposed in the 
Panel Report on the Coastal Zone. It recommends 
formation of a National Commission to create new 
criteria for fixing shore boundaries, establish these 
limits for each coastal State, and negotiate with 
Federal and State interests regarding the limits. 
The intent is to establish fixed boundaries for 
domestic purposes only, breaking from traditional 
reliance upon the principles of common law. 
Recommendation: 
A National commission should be established 
immediately to clarify the marine jurisdictional 
limits of the U.S. coastal States. 
B. Definition of National Jurisdiction 
The legal problems presently hindering orderly 
industrial ocean development arise primarily from 
State and Federal laws and regulations. However, 
this concern with laws affecting activities within 
National boundaries also includes clarification of 
the National boundaries and the international 
aspects of exploiting resources beyond them. This 
subject is discussed in greater detail in the Report 
of the Commission’s International Panel. 
As an example of the difficulties encountered, 
two companies have acquired from two different 
nations the oil rights of the same section of sea 
floor off the Grand Banks. Canada believes it has 
jurisdiction over the mineral wealth of the Banks, 
but France, which owns the islands of St. Pierre 
and Miquelon, also claims a portion. 
Because the United States has not officially 
recognized the jurisdictional boundaries of some 
nations, many problems arise, other than area 
access, that affect U.S. companies. A company 
mining, for instance, off the coast of South 
America in an area of disputed jurisdiction will not 
only find that it must pay U.S. import duties, but 
that it may not be allowed an investment tax 
credit or credit for taxes paid to the nation 
claiming jurisdiction. International agreement on 
national jurisdictions will eliminate uncertainty 
and permit U.S. companies operating in such areas 
to take advantage of many fiscal incentives nor- 
mally available to domestic companies. 
Companies considering offshore oil and mining 
ventures will be reluctant, and in some cases 
restrained, from making sizeable investments un- 
less the Continental Shelf’s limits are precisely 
defined and a new international legal-political 
framework is agreed upon to govern exploration 
and exploitation beyond these limits. Until this is 
accomplished, the United States should encourage 
continued exploration and exploitation beyond 
the 200 meter isobath. 
Recommendation: 
The U.S. Government should take the initiative in 
proposing a new international framework for 
exploiting ocean mineral resources to: 
—Define clearly the limits of National jurisdic- 
tions. 
—Govern operations beyond these limits. 
C. Exploration and Lease Terms 
Oil, gas, and sulfur are the only mineral 
resources being recovered from the outer Conti- 
nental Shelf under Federal jurisdiction. Phos- 
phates, gravels, sand, shells, and certain placers are 
being taken from inshore waters under State 
jurisdiction. Petroleum exploration and drilling 
conducted in both Federal and State regimes 
clearly dominate these activities. 
The terms under which mineral rights in outer 
Continental Shelf lands may be assigned to private 
developers are specified in the 1953 Outer Conti- 
nental Shelf Lands Act.? 
The Act requires that rights to minerals be 
subject to competitive bidding. This system has 
° This subject has been under extensive review for 
some time by the Public Land Law Review Commission. 
V-15 
