§1412 Licenses for exploration and permits for commercial recovery

Summary

The Administrator must give eligible people licenses to explore the deep seabed and permits to recover minerals commercially. Those licenses and permits let the holder do the work allowed by the law, the agency’s rules, and any special conditions attached. A license or permit is exclusive against other U.S. citizens and against citizens, governments, or companies of countries that have reciprocal arrangements. A valid exploration license can lead to a recovery permit, which lets the holder take, own, move, use, and sell the minerals. If people from other countries interfere, the Secretary of State must try to settle the dispute peacefully. The Administrator cannot issue licenses or permits that conflict with a binding international agreement, with earlier-filed or existing plans, or with authorizations another country gave before an application was filed. The Administrator also cannot issue a permit for an area already covered by someone else’s valid license, cannot grant exploration licenses before July 1, 1981 or permits that start recovery before January 1, 1988, and cannot issue or transfer licenses or permits to anyone who is not a U.S. citizen. An applicant who gave up or had rights revoked for an area within the last 3 years cannot get a new license or permit for that same area. Permittees must use U.S.-documented vessels for recovery, processing at sea, and at least one U.S.-documented ship to transport minerals from each site; such vessels count as engaged in U.S. foreign commerce. Processing on land must be done in the United States unless the President decides otherwise, or unless the Administrator allows processing abroad after a hearing because it is needed for the project’s economics and the permittee assures the material will be returned to the United States if required.