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for the purpose of making geophysical or geochemical measurements, bottom sampling, or comparable activities so long as such operation is carried, on in a manner

that does not significantly alter the surface or subsurface of the deep seabed;

(g) "commercial recovery" means recovery of hard minerals at a substantial rate of production (without regard to profit or loss) for the primary purpose of marketing or commercial use and does not include recovery for any other purpose such as sampling, experimenting in recovery methods, or testing equipment

or plant for recovery or treatment of hard minerals;

(h) "person" means any government or unit thereof and any juridical or natural person;

(i) "reciprocating state" means any foreign state designated by the President as a state having legislation or state practice or agreements with the United States which establish an interim policy and practice

comparable to that of the United States under this Act;

(j) "international registry clearinghouse" shall mean a recording agency or organization designated by the President in cooperation with reciprocating states. SECRETARY'S POWERS; REQUIREMENT OF LICENSE

24 SEC. 3. The Secretary shall administer the provisions of

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this Act and may prescribe such regulations as are neces

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1 sary to its execution. No person subject to the jurisdiction 2 of the United States shall directly or indirectly develop any 3 portion of the deep seabed except as authorized by license 4 issued pursuant to this Act or by a reciprocating state. 5 Nothing in this Act or any regulation prescribed thereunder 6 shall preclude, or impose any restriction upon, scientific 7 research or prospecting by any person of any portion of the 8 deep seabed not subject to an outstanding license issued 9 under this Act or by any reciprocating state, or shall re10 quire any applicant for a license or any licensee to divulge any information which could prejudice its commercial 12 position.

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EXCLUSIVE LICENSES; LIMITATIONS AND CONDITIONS

14 SEC. 4. (a) The Secretary shall issue licenses pursuant 15 to section 5, recognizing rights, which shall be exclusive as 16 against all persons subject to the jurisdiction of the United 17 States or of any reciprocating state, to develop the block

18 designated in such license, as follows: (i) as to each surface

19 block, the rights shall extend to manganese-oxide nodules

20 and all other hard minerals at the surface of the deep seabed

or located vertically below to a depth not exceeding teu

meters; (ii) as to cach subsurface block, the rights shall

23 extend to all hard minerals located more than ten meters

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beneath the surface of the deep seabed.

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(b) Where a subsurface block leased to one person is

2 subjacent to a surface block leased to a different person, 3 the licensee of the subsurface block shall have the right to 4 penetrate the surface block and the Secretary shall prescribe 5 regulations to prevent undue interference by one with the 6 other, giving reasonable priority to the first licensee. No 7 license shall preclude scientific research by any person in 8 licensed areas where such activities do not interfere with 9 development by the licensees.

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(c) Every license issued under this Act shall remain in 11 force for fifteen years and, where commercial recovery of 12 hard minerals has been achieved from a licensed block within 13 fifteen years, such license shall remain in force so long as 14 commercial recovery from the block continues. The Secre15 tary shall prescribe, as conditions for every license issued 16 pursuant to this Act, minimum annual expenditures as speci17 fied in section 7, and requirements to protect the environ18 ment, prevent unreasonable interference with other ocean 19 uses, and promote arbitral settlement of disputes. Where 20 circumstances beyond the control of a licensee impair its 21 ability to develop any portion of the deep seabed held under 22 such license, the term of the license and the dates for comply23 ing with any other license condition shall be extended for an 24 equal length of time.

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LICENSING PROCEDURES; CLEARINGHOUSE

2 SEC. 5. (a) A license as specified in section 4 shall be 3 issued by the Secretary to the first qualified person who 4 makes written application and tenders a fee of $5,000 for 5 the block specified in the application, except for portions of 6 the deep seabed excluded from licensing pursuant to section 7 6. A person shall be deemed qualified for a license under 8 this Act if and only if that person is a citizen of the United 9 States, or a corporation or other juridical entity organized 10 under the laws of the United States, its States, territories, 11 or possessions, and meets such technical and financial re12 quirements as the Secretary may prescribe in order to assure 13 effective and orderly development of the licensed portion. 14 (b) The Secretary shall act upon each license applica15 tion within sixty days of its filing, and if the license is not 16 issued or is issued for less than the entire portion of the deep 17 seabed sought in the application, the Secretary shall in an18 nouncing his action to the applicant state reasons in writing 19 for declining to issue the license for the entire portion sought. 20 The Secretary shall, and the applicant or licensee may, notify 21 within fourteen days the international registry clearinghouse 22 of the filing or withdrawal of an application for a license 23 under this Act, the issuance, denial, expiration, surrender, 24 transfer, or revocation of such license, or the relinquishment 25 of any licensed portion of the deep seabed.

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(c) The function of the international registry clearing2 house shall consist solely of keeping records of notices of 3 applications for licenses, the issuance, denial, transfer, or 4 termination of licenses, and the relinquishment of licensed 5 portions of the deep seabed. Its records shall be available 6 for public inspection during the business hours of every 7 working day. Pending designation of such clearinghouse, 8 notice to the Secretary shall constitute notice to the inter9 national registry clearinghouse within the meaning of this 10 Act.

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AREAS WITHDRAWN FROM LICENSING; DENSITY

LIMITATIONS

SEC. 6. (a) No license shall be issued under this Act for 14 any portion of the deep seabed (i) which has been relin15 quished by the applicant under license issued by any State 16 within the prior three years; (ii) which is subject either to a 17 prior application for a license or an outstanding license under 18 this Act or from a reciprocating State: Provided, That notice 19 thereof has been received by the international registry clear20 inghouse within fourteen days of such application or license; 21 (iii) which if licensed would result in the applicant holding 22 under licenses issued by any State or States more than 30 per 23 centum of that area of the deep seabed which is within any 24 circle with a diameter of one thousand two hundred and fifty 25 kilometers where the licensed area consists of surface blocks