Proposed Rule2025-12513
Deep Seabed Mining: Revisions to Regulations for Exploration License and Commercial Recovery Permit Applications
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Published
July 7, 2025
Issuing agencies
Commerce DepartmentNational Oceanic and Atmospheric Administration
Abstract
The Deep Seabed Hard Mineral Resources Act (DSHMRA or the Act) charges NOAA with the responsibility for issuing licenses for exploration and permits for commercial recovery of polymetallic nodules from the deep seabed in areas beyond national jurisdiction and promulgating regulations necessary to carry out the provisions of the Act. Some provisions of the regulations require updating to reflect significant technological and information changes since the initial regulations were promulgated in the 1980s. NOAA proposes to include a consolidated license and permit review process in a section of the regulations that was reserved for this purpose and make other changes.
Full Text
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<title>Federal Register, Volume 90 Issue 127 (Monday, July 7, 2025)</title>
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[Federal Register Volume 90, Number 127 (Monday, July 7, 2025)]
[Proposed Rules]
[Pages 29806-29817]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12513]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
15 CFR Parts 970 and 971
[Docket No. 250630-0118]
RIN 0648-BN96
Deep Seabed Mining: Revisions to Regulations for Exploration
License and Commercial Recovery Permit Applications
AGENCY: Office for Coastal Management, National Ocean Service, National
Oceanic Atmospheric Administration (NOAA), Department of Commerce.
[[Page 29807]]
ACTION: Proposed rule; request for comments.
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SUMMARY: The Deep Seabed Hard Mineral Resources Act (DSHMRA or the Act)
charges NOAA with the responsibility for issuing licenses for
exploration and permits for commercial recovery of polymetallic nodules
from the deep seabed in areas beyond national jurisdiction and
promulgating regulations necessary to carry out the provisions of the
Act. Some provisions of the regulations require updating to reflect
significant technological and information changes since the initial
regulations were promulgated in the 1980s. NOAA proposes to include a
consolidated license and permit review process in a section of the
regulations that was reserved for this purpose and make other changes.
DATES: Comments on this proposed rule must be received by September 5,
2025. NOAA will hold one virtual public hearing on this proposed rule
on a date, time, and virtual location to be determined, which will be
published in the Federal Register and posted on NOAA's Deep Seabed
Mining Website.
ADDRESSES: You may submit comments on this proposed rule, identified by
NOAA-NOS-2025-0108 by electronic submission described below:
Electronic Submission: Submit all public comments via the Federal
e-Rulemaking Portal at <a href="https://www.regulations.gov/docket/NOAA-NOS-2025-0108">https://www.regulations.gov/docket/NOAA-NOS-2025-0108</a> or go <a href="http://www.regulations.gov">www.regulations.gov</a> and enter NOAA-NOS-2025-0108 in the
keyword search. Locate the document you wish to comment on from the
resulting list and click on the ``Submit a comment'' icon on the right
of that line. Comments should be addressed to Mr. Kerry Kehoe, Federal
Consistency Specialist, Office for Coastal Management, NOAA. Attention:
DSHMRA Proposed Rule Comments.
Mail: All comments must be submitted via electronic submission at
<a href="https://www.regulations.gov/docket/NOAA-NOS-2025-0108">https://www.regulations.gov/docket/NOAA-NOS-2025-0108</a>; no written
comments should be submitted by mail.
Instructions: Comments must be submitted by the above electronic
method to ensure that the comments are received, documented, and
considered by NOAA. Comments sent by any other method, to any other
address or individual, or received after the end of the comment period,
may not be considered. Comments that are not related to the proposed
rule or that contain profanity, vulgarity, threats, or other
inappropriate language will not be considered. All relevant comments
received are a part of the public record and will generally be posted
for public viewing on <a href="http://www.regulations.gov">www.regulations.gov</a> without change. All personal
identifying information (e.g., name, address) submitted voluntarily by
the sender will be publicly accessible. Do not submit confidential
business information or otherwise sensitive or protected information.
NOAA will accept anonymous comments (enter ``N/A'' in the required
fields if you wish to remain anonymous).
In accordance with 5 U.S.C. 553(b)(4), a summary of this rule may
be found at <a href="https://www.regulations.gov/docket/NOAA-NOS-2025-0108">https://www.regulations.gov/docket/NOAA-NOS-2025-0108</a>. A
Regulatory Impact Analysis has been prepared for this proposed rule and
is also available at <a href="https://www.regulations.gov/docket/NOAA-NOS-2025-0108">https://www.regulations.gov/docket/NOAA-NOS-2025-0108</a>.
FOR FURTHER INFORMATION CONTACT: Kerry Kehoe, (240) 560-8518,
<a href="/cdn-cgi/l/email-protection#9df6f8efefe4b3f6f8f5f2f8ddf3f2fcfcb3faf2eb"><span class="__cf_email__" data-cfemail="3c57594e4e451257595453597c52535d5d125b534a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
DSHMRA (30 U.S.C. 1401-1473) charges the NOAA Administrator with
the responsibility for issuing to U.S. citizens licenses for
exploration and permits for commercial recovery of polymetallic nodules
from the deep seabed in areas beyond national jurisdiction. U.S.
citizens must obtain appropriate licenses and permits from NOAA before
undertaking deep seabed mining.\1\
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\1\ Mining activities within the U.S. outer continental shelf
are governed by the Outer Continental Shelf Lands Act (43 U.S.C.
1331-1356c), which is administered by the Bureau of Ocean Energy
Management within the Department of the Interior. The term ``U.S.
outer continental shelf'' includes the extended continental shelf in
areas adjacent to the U.S. States and is limited to the exclusive
economic zone in areas adjacent to any territory of the United
States.
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The International Seabed Authority (ISA) regulates deep seabed
mining in areas beyond national jurisdiction for countries that are
parties to the United Nations Convention on the Law of the Sea
(UNCLOS). The United States is a non-party to UNCLOS. Under U.S. law,
NOAA may issue licenses and permits to U.S. citizens in areas beyond
national jurisdiction under DSHMRA, provided all statutory and
regulatory requirements are met.
On April 24, 2025, the President signed Executive Order (E.O.)
14285, ``Unleashing America's Offshore Critical Minerals and
Resources,'' establishing policies to advance U.S. leadership in seabed
mineral exploration and responsible commercial recovery.
DSHMRA, which was signed into law in 1980, requires the NOAA
Administrator to promulgate regulations as necessary to carry out the
provisions of the Act. 30 U.S.C. 1468. NOAA published its DSHMRA
exploration license regulations (15 CFR part 970) in 1981, and its
commercial recovery permit regulations (15 CFR part 971) in 1989. As
NOAA reasoned when proposing the commercial recovery permit regulations
in 1986, priority of right is established through the licensing
process, and the regulations provide that a permittee must be the
holder of a valid exploration license in order to receive a commercial
recovery permit (Sec. 971.103). At that time, the sequential nature of
the licensing and permitting processes was dictated by the
developmental state of deep seabed mining technology and the
information required to prepare an application for commercial recovery.
However, NOAA acknowledged that once the industry matured and gained
experience from activities undertaken during site-specific exploration,
circumstances may evolve that might allow later entrants to capitalize
on the information gained by previous explorers and lessen the need for
further exploration of previously explored areas. In such cases there
may be a need for a consolidated license and permit review in which
permit applicants could meet exploration license requirements to
establish priority of right, and permit requirements, simultaneously.
In 1986, consolidation of the two procedures was premature. However,
NOAA included a reserved section (Sec. 971.214) for potential later
development. See 51 FR 26794, 26796 (July 25, 1986).
As the agency anticipated, over the past decades there has been a
vast improvement in the technological capability for deep seabed
mining, and the industry has obtained a substantial amount of
information from deep seabed exploration activities and expressed a
readiness for commercial recovery.
For example, the development of autonomous underwater vehicles
(AUVs), deep sea sensors, machine learning, artificial intelligence,
and other technology has substantially improved the ability to more
efficiently map and explore the sea floor. These improvements in
technological abilities are likely to continue or accelerate in the
future.
At the same time, knowledge of the sea floor has also increased.
Unlike when the regulations were first promulgated, today NOAA and many
other entities operating under regimes other than DSHMRA have
undertaken detailed mapping of areas of the seabed both within national
boundaries and beyond national jurisdiction. In
[[Page 29808]]
addition, industry has conducted scientific testing on polymetallic
nodules, developed and tested new deep sea mining-relevant technology,
and have gained scientific and technical expertise and experience in
deep seabed mining exploration. This knowledge, experience, and
expertise may now be leveraged by U.S. citizens operating under DSHMRA
who are interested in pursuing commercial recovery of polymetallic
nodules of the deep seabed in areas beyond national jurisdiction.
The need for regulatory changes were foreseen by NOAA in the 1980s
when it published its proposed and final rules for the DSHMRA
commercial recovery permits by reserving a section for a consolidated
license and permit review process in which permit applicants could meet
necessary exploration license requirements to establish priority of
right and permit requirements simultaneously. See 15 CFR 971.214; 51 FR
26793, 26796. NOAA proposes to add that process as well as make changes
to other obsolete sections of the license and permit regulations. This
approach is consistent with DSHMRA, which does not require sequential
licensing and permitting, and is in keeping with the Act's finding that
``the present and future national interest of the United States
requires the availability of hard mineral resources which is
independent of the export policies of foreign nations,'' 30 U.S.C.
1401(a)(3). The proposed changes do not alter the substantive standards
to which applications would be held and include only technical changes
to the regulatory text.
NOAA requests comments on this proposed rule. NOAA also requests
comments on the Initial Regulatory Flexibility Analysis (IRFA),
including the assessment of potential impacts to small businesses from
the proposed fee amount and potential alternative fee amounts. NOAA
also requests comment on the Paperwork Reduction Act (PRA) analysis,
including whether this proposed collection of information is necessary
for the proper performance of the functions of the agency; whether the
information shall have practical utility; the accuracy of the burden
estimate; ways to enhance the quality, use, and clarity of the
information to be collected; and ways to minimize the burden of the
collection of information, including through the use of automated
collection techniques or other forms of information technology.
II. Explanation of Proposed Changes to the DSHMRA Regulations
Sec. 970.200(b) Place, form and copies. NOAA proposes to revise
paragraph (b) to remove the requirement for mailing 30 hard copies,
replace it with a requirement to submit electronically only, and remove
addresses that are no longer valid. NOAA also proposes to add a
requirement that applications must be formatted according to regulatory
sections and topics. Formatting an application by the regulatory
sections and topics will help ensure that an application contains the
required information and will allow NOAA to complete its review of an
application in an expeditious manner.
Sec. 970.209 Substantial compliance with application requirements.
NOAA proposes to revise Sec. 970.209 by making clarifying changes
regarding substantial compliance and to reference the proposed Sec.
971.214 consolidated license and permit procedure. While NOAA is not
proposing changes regarding determining priority of right and payment
of the administrative fee, NOAA notes that the payment of the
administrative fee does not determine priority of right; instead, the
submission date of the application that is found to be in substantial
compliance determines priority of right under the terms of Sec.
970.200(e).
Sec. 970.210 Reasonable time for full compliance. NOAA proposes to
revise Sec. 970.210 to reference the proposed Sec. 971.214
consolidated license and permit procedure.
Sec. 971.200(b) Place, form and copies. NOAA proposes to revise
paragraph (b) to remove the requirement for mailing 25 hard copies,
replace it with a requirement to submit electronically, and remove
addresses that are no longer valid. NOAA also proposes to add a
sentence that applications must be formatted according to regulatory
sections and topics. Formatting an application by the regulatory
sections and topics will help ensure that an application contains the
required information and will allow NOAA to complete its review of an
application in an expeditious manner.
Sec. 971.214 Consolidated license and permit procedures. NOAA
proposes to use this currently reserved section to add a process
whereby U.S. citizens who are qualified for these consolidated
procedures may concurrently apply for an exploration license and a
commercial recovery permit. A U.S. citizen would be qualified to use
these consolidated procedures if it can demonstrate that the applicant
possesses the scientific, technical, and financial resources to pursue
commercial recovery activities in an expeditious and diligent manner.
Under this proposed consolidated license and permit process, a
qualified applicant would not submit two, sequential applications (one
for the exploration license and one for the commercial recovery permit)
but, rather, would submit one application for both the exploration
license and commercial recovery permit at the same time that would meet
the requirements of the new proposed Sec. 970.214. The Administrator
would then conduct a consolidated review through one process, not two
separate reviews, and, where necessary, publish separate proposals to
issue a license and permit; terms, conditions, and restrictions; and
licenses and permits.\2\ The Administrator would provide an opportunity
for public comment and could decide, to the extent practicable, hold a
public hearing on the consolidated license and permit application. NOAA
expects that the Administrator would likely prepare a single
environmental impact statement (EIS) that would evaluate the impacts of
both exploration activities and commercial recovery activities as
opposed to separate EISs. However, there may be situations in which two
EISs are appropriate. See 30 U.S.C. 1419(d).
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\2\ As under the existing regulations, and pursuant to DSHMRA,
priority of right shall be based on ``the chronological order in
which license applications which are in substantial compliance with
the requirements established under subsection (a)(2) of this section
are filed with the Administrator.'' 30 U.S.C. 1413(b).
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The Administrator would issue the exploration license and
commercial recovery permit at the same time thereby confirming the
priority of right required that would otherwise be established through
the licensing process and the ability of the permit holder to proceed
to commercial recovery. That priority of right continues through the
commercial recovery permit. The length of the terms for an exploration
license (10 years) and commercial recovery permit (20 years) would not
change nor would the ability to extend these terms as described in the
regulations. Once the Administrator would issue the license and permit
under the consolidated process, the applicant could proceed with
commercial recovery when it is ready;--this could be any time after the
Administrator issues the license and permit. If an applicant determined
that it would no longer need to conduct further exploration, it could
decide to not extend its exploration license.
The fee for the consolidated application has been set at $350,000,
which reflects inflation that has occurred in the time since the fee
was set at $100,000. As discussed below in the Regulatory Flexibility
Analysis section, NOAA is seeking public
[[Page 29809]]
comment on alternatives to the consolidated license and permit process
fee for consideration as well as public comment on the Regulatory
Impact Analysis.
Sec. 971.802 Public disclosure of documents received by NOAA. NOAA
proposes to revise Sec. 971.802 to remove outdated procedures and
cross-references for handling records and instead replace the section
with a cross-reference to the current regulations which govern public
disclosure of documents received by NOAA. The proposed changes would
revise paragraph (a), remove paragraphs (b) through (e), and
redesignate paragraphs (f) and (g) as paragraphs (b) and (c). The text
of the redesignated paragraphs (b) and (c) remain unchanged from the
current paragraphs (f) and (g).
III. Miscellaneous Rulemaking Requirements
Executive Order 12372: Intergovernmental Review
NOAA has concluded that this regulatory action does not affect any
state's intergovernmental review process established under Executive
Order 12372.
Executive Order 13132: Federalism Assessment
NOAA has concluded that this regulatory action is consistent with
federalism principles, criteria, and requirements stated in Executive
Order 13132. The proposed changes for the DSHMRA regulations would
facilitate the submission of exploration license and commercial
recovery permit applications as well as NOAA and interagency review of
the applications. DSHMRA and these proposed regulatory changes do not
have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government.
Because DSHMRA and these regulations do not affect the principles of
federalism, no federalism assessment need be prepared.
Executive Order 12866: Regulatory Planning and Review
This proposed rule is economically significant for purposes of
Executive Order 12866, Section 3(f)(1), because it is expected to have
an annual effect on the economy of $100 million or more.
Executive Order 14192: Unleashing Prosperity Through Deregulation
This proposed rule, if finalized as proposed, is expected to be an
E.O. 14192 deregulatory action.
Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
This regulatory action and the proposed changes, if they were to
become a final rule, is not a ``significant energy action'' for
purposes of Executive Order 13211. Therefore, NOAA has not prepared a
statement of energy effects. The DSHMRA regulations and the proposed
revisions would not result in a ``significant adverse effect on the
supply, distribution, or use of energy.''
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA; 5 U.S.C. 601 et seq.) requires
Federal agencies to prepare an analysis of a rule's impact on small
businesses whenever the agency is required to publish a rulemaking,
unless the agency certifies, pursuant to 5 U.S.C. 605, that the action
will not have significant economic impact on a substantial number of
small businesses. The RFA requires agencies to consider, but not
necessarily minimize, the effects of rules on small businesses. The
goal of the RFA is to inform the agency and public of expected economic
effects of the action and to ensure the agency considers alternatives
that minimize the expected economic effects on small businesses while
meeting applicable goals and objectives.
NOAA developed the following Initial Regulatory Flexibility
Analysis (IRFA) discussing the impacts of this proposed rule on small
businesses.
Summary of Findings
NOAA has determined that this rule would not result in a
significant cost impact on a substantial number of small businesses
under section 605(b) of the Regulatory Flexibility Act. The proposed
rule would result in a cost savings for the affected businesses.
Based on the information from this analysis we found that:
<bullet> There are an estimated seven U.S. businesses that would be
affected by this proposed rule.
<bullet> For these seven businesses, we estimate that 57% (or four
businesses) are considered small based on the Small Business
Administration size standards.
<bullet> Although we estimate that seven businesses would be
affected by this proposed rule, we recognize that the number of
applicants could be even smaller since this is a new industry and there
are specific technological, engineering, capital and support services
required to undertake seabed mining.
Preliminary Initial Regulatory Flexibility Analysis
The RFA establishes rulemaking that agencies shall endeavor,
consistent with the objectives of the rule and of applicable statutes,
to fit regulatory and informational requirements to the scale of the
businesses, organizations, and governmental jurisdictions subject to
regulation. To achieve this principle, agencies are required to solicit
and consider flexible regulatory proposals and to explain the rationale
for their actions to assure that such proposals are given serious
consideration.
Description of the Reasons for Agency Action
Currently, the DSHMRA regulations require a sequential process.
Applicants must first obtain an exploration license before a commercial
recovery permit application can be applied for. While this sequential
approach was initially appropriate due to the nascent stage of deep
seabed mining technology and the data needed for a commercial recovery
application, a consolidated review was always envisioned for a more
mature industry.
Statement of Legal Basis and Objectives for the Rule
The statutory authority for NOAA to prescribe, change, revise, or
amend the affected regulations under 15 CFR parts 970 and 971 is
provided under DSHMRA (30 U.S.C. 1401-1473). DSHMRA, which was signed
into law in 1980, requires the NOAA Administrator to promulgate
regulations as necessary to carry out the provisions of the Act. 30
U.S.C. 1468. NOAA published its DSHMRA exploration license regulations
(15 CFR part 970) in 1981, and its commercial recovery permit
regulations (15 CFR part 971) in 1989.
The objective of this rule is to provide the option for a
consolidated application streamlining the process for qualified
applicants, in accordance to President signed Executive Order (E.O.)
14285, ``Unleashing America's Offshore Critical Minerals and
Resources,'' establishing policies to advance U.S. leadership in seabed
mineral exploration and responsible commercial recovery.
Description of Recordkeeping and Other Compliance Requirements
This proposed rule would reduce the current requirements for
reporting, recordkeeping, and other paperwork requirements for affected
businesses by transitioning to electronic delivery and offering an
optional consolidated process to streamline exploration licensing and
commercial recovery
[[Page 29810]]
permit acquisitions. These changes and their impacts are described in
more depth in Chapters 4 and 5 of the RIA.
Overlapping, Duplicative, or Conflicting Federal Rules
The requirements of this proposed rule would not duplicate,
overlap, or conflict with any other Federal requirement.
Compliance Cost Savings
There are cost efficiencies in the transition from print to digital
for submission of the application and also efficiencies in the
consolidation of the permitting process rather than completing both the
exploratory license and commercial recovery permit processes. Monetized
savings are found in the preparation of one report rather than two and
the need to only attend one adjudicatory hearing rather than two. The
applying business would also see a savings of 100 days through only one
review process rather than two.
The analysis assumes two applicants for exploratory permits, one
applicant for a commercial recovery permit, and one applicant for a
consolidated permit. Over ten years from 2026 to 2035, the total net
benefits (USD) of the proposed rule is $137,000 undiscounted, $120,000
discounted at three percent and $103,000 discounted at seven percent.
For an individual small business considering the consolidated
application over the separate and sequential exploratory and recovery
permit processes, they would see a cost savings from transitioning from
paper to digital application of $5,733 and, further, from time savings
of 100 days to start the recovery process. For a business electing the
sequential process of exploratory and recovery permits, the benefits of
transitioning from paper to digital application submissions would be
$5,196. Other benefits from the standardization of the exploratory and
commercial recovery applications were not quantified.
Description of the Potential Number of Small Businesses
We used the North American Industry Classification System (NAICS)
codes of the current businesses that have applied or expressed interest
to start our research for the identification of the potential small
businesses affected by this proposed rule. We identified seven
businesses likely to be affected by this proposed rule. We researched
and compiled the employee size and revenue data for all seven
businesses. We used their available name and address information to
research public and proprietary databases for business type (subsidiary
or parent business), primary line of business, employee size and
revenue. Our preferred source, deemed to be most authoritative, came
directly from prospective DSHMRA applicants. In cases where the
prospective DSHMRA applicant did not provide this information, our
secondary preferred source came from Dun & Bradstreet--which provides a
comprehensive database of business records for over 600 million
organizations internationally. We matched this information to the SBA's
``Table of Small Business Size Standards'' to determine if a business
is small in NAICS 212290--`All Other Metal Ore Mining,' which best
describes deep sea mining. This industry has an SBA size standard of
1,250 employees. Based on the information available we were able to
classify four out of seven businesses potentially impacted by this
proposed rule as small businesses. In addition to these directly
impacted small businesses, businesses in several other industries may
be indirectly impacted and are included in the Table below.
Table--NAICS Categories for Small Businesses
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Small Number of
Number of small business Estimated small
NAICS code Description businesses by share of revenue per SBA standard businesses
industry * industry * small affected by
(%) business * the rule ***
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212290.... All Other Metal 30 88 $40.5 M 1,250 Employees......... 4
Ore Mining.
213114.... Support 158 90 2.3 M 41.00 Mil............... ..............
Activities for
Metal Mining.
213115.... Support 175 90 2.7 M 20.50 Mil............... ..............
Activities for
Nonmetallic
Minerals
(except Fuels)
Mining.
523110.... Investment 1,861 91 2.6 M 47.00 Mil............... ..............
Banking and
Securities
Intermediation.
541620.... Environmental 8,119 97 1.2 M 19.00 Mil............... ..............
Consulting
Services.
541690.... Other 25,810 98 0.8 M 19.00 Mil............... ..............
Scientific and
Technical
Consulting
Services.
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* Source: U.S. Census Bureau Statistics of U.S. Businesses.
** Source: SBA Office of Size Standards.
*** Source: NOAA records. The number of small businesses is calculated based on business information received
from potential DSHMRA applicants and SBA Size Standards by 6-digit NAICS code. In some cases the SBA Size
Standard is based on a business's total annual receipts (gross income plus cost of goods sold). Due to a lack
of data on businesses'' annual receipts it was not possible to determine whether they met the standard for a
small business.
Cost Impact Analysis
This proposed rule will result in benefits (i.e., compliance cost
savings) to the small businesses as presented in the Compliance Cost
Savings section above. To assess the impact to small businesses, we
calculated the benefits as a percentage of businesses' revenues. Annual
revenue figures could only be found for two of the four applicants that
we determined to be small businesses \3\ and showed an interest in
applying for a deep seabed mining license and/or commercial recovery
permit. This was primarily due to the majority of interested businesses
being newly incorporated in 2025. Using business reports and financial
records, we found that the small business benefits of the proposed rule
would have greater than a 1 percent of positive impact on annual
revenues.
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\3\ Due to limited data on business revenue and/or employee
totals, we could not determine whether two potential DSM applicants
were small businesses. Hence, these businesses were not included in
this analysis.
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Alternatives Considered
The proposed requirements will bring benefits (i.e., compliance
cost savings) to small businesses. NOAA's ability under the statute to
develop alternatives to the license and permit processes are
[[Page 29811]]
limited, as DSHMRA states that an application for an exploration
license establishes priority of right to an area. Therefore, NOAA could
not, through regulation, remove the requirement for an exploration
license. NOAA did consider amounts for the administrative fee for the
consolidated license and permit process. Under existing regulations,
the fee for an exploration license application is $100,000, and the fee
for a commercial recovery permit application would be another $100,000.
NOAA is proposing a $350,000 fee for the consolidated license and
permit application, which reflects inflation that has occurred in the
time since the fee was set at $100,000. Additionally, as required in
the statute (30 U.S.C. 1414) and described in the regulations (15 CFR
970.208 and 971.208), an applicant must pay to the Administrator a
reasonable administrative fee, and the amount of the administrative fee
shall reflect the reasonable administrative costs incurred in reviewing
and processing the application. Therefore, NOAA adjusts the fee up or
down depending on the administrative costs incurred. NOAA welcomes
public comment on alternatives to the consolidated license and permit
process fee for consideration.
Paperwork Reduction Act
This proposed rule contains a collection-of-information requirement
subject to review and approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et seq.
This proposed rule seeks to extend and revise the existing requirements
for the collection of information 0648-0145, currently titled ``Deep
Seabed Mining Regulations for Exploration Licenses'' and now proposed
to be renamed ``Deep Seabed Mining Regulations.'' In accordance with
section 3507(d) of the PRA, the information collection requirements
included in this proposed rule have been submitted for approval to OMB.
This proposed rule would permit concurrent submission of
applications for exploration licenses and commercial recovery permits.
Anyone seeking an exploration license or commercial recovery permit
must submit certain information that allows NOAA to ensure the
applicant meets the standards of the Act. Licensees and permittees are
required to conduct monitoring and make reports, including annual
reports regarding the licensee's or permittee's conformance to the
schedule of activities and expenditures contained in the license or
permit, and they may request revisions, transfers, or extensions of
licenses or permits. Information required for the issuance, revision,
transfer, and extension of licenses and permits ensures that the
Administrator is able to make determinations on the findings set forth
in 30 U.S.C. 1413(c) and 30 U.S.C. 1415(a) and the factors set forth in
the DSHMRA regulations. These findings and factors include that
applicants have identified areas of interest for deep seabed hard
mineral exploration and production; developed plans for those
activities; have the financial resources available to conduct proposed
activity; and have considered the effects of the activity on the
natural and human environment. This information is used to determine
whether licenses and permits should be issued, revised, transferred, or
extended. The licenses and permits are subject to annual reporting
requirements and may be subject to extension requests (every five years
for exploration licenses, or every twenty years for commercial recovery
permits).
NOAA estimates that the public reporting burden for applicants
taking advantage of the consolidated exploration license and commercial
recovery permit process would be 1,125 hours per applicant; with an
estimated one applicant per year using the consolidated process, the
total annual burden hours for this process would be 1,125 hours. This
estimate takes into account the one-time initial cost (in hours) per
entity to prepare and submit to NOAA the consolidated license and
permit application. NOAA estimates that the public reporting burden for
applicants submitting an exploration license application alone would be
750 hours per applicant, with two applicants anticipated per year
resulting in total annual burden hours of 1,500. A commercial recovery
permit application alone would be 750 hours, with one anticipated
commercial recovery permit applicant per year for a total of 750
anticipated annual burden hours. This estimate takes into account the
one-time initial cost (in hours) per entity to prepare and submit to
NOAA either a license application or a permit application.
NOAA anticipates a total of two annual exploration license
applications, one annual commercial recovery permit application, and
one annual consolidated application for both an exploration license and
a commercial recovery permit. NOAA has sought information from
potential respondents as to the time estimates of preparing
applications. One potential respondent estimated a total of 3,600 hours
to prepare three applications, resulting in an estimated 1,200 hours
per application. Another respondent estimated a total of 600 hours to
prepare two applications, resulting in an estimated 300 hours per
application. Averaging the estimated time burden between these two
potential respondents results in an estimated 750 hours per
application. NOAA has used this hour estimate for the time burden of
preparing a single license or permit application. For a consolidated
exploration license and commercial recovery permit application, this is
a new proposed process, but NOAA provides an educated guess that the
estimated time burden would be 1.5 times that of a single application,
due to efficiencies gained in reducing duplication of effort. As such,
NOAA estimates that preparation of a consolidated application would
take 1,125 hours. NOAA will update this information in future renewals
of this collection based on the actual number of license applications,
permit applications, and consolidated applications received during the
collection approval cycle, and on further information.
NOAA estimates that there may be one objection to license or permit
terms, conditions, or restrictions received per year. NOAA anticipates
that the respondent would spend 250 hours per objection for an
estimated total annual burden of 250 hours.
Every subsequent year, NOAA anticipates that the total annual cost
burden (in hours) for applicable entities to implement the rule by
filing annual reports would be 20 hours per report, including the time
for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the
collection of information. The estimated total burden to produce an
annual report will vary according to the amount of activities by the
license and/or permit holder and is expected to average 20 hours based
on previous reports submitted to NOAA. With 5 anticipated annual
reports per year, that would result in a total of 100 annual burden
hours for annual reports.
The estimated total burden to prepare a license or permit extension
request which includes an exploration plan or commercial recovery plan
is 250 hours. A license is issued for a period of ten years. Extension
requests may be submitted every five years for exploration licenses, or
may be submitted after ten or twenty years (depending on circumstances)
for commercial recovery permits. NOAA estimates that the annualized
burden hours of extension requests is 50
[[Page 29812]]
annualized hours for exploration license extension requests and 25
annualized hours for commercial recovery permit extension requests.
The estimated total burden to prepare a license or permit revision
is 40 hours. Based on historical data, NOAA expects to receive 2
revision requests in a given year for a total of 80 annual burden
hours.
The estimated total burden to prepare a license or permit transfer
request is 750 hours. Based on historical data, NOAA expects to receive
1 transfer request every 10 years. NOAA estimates that the annualized
burden of a transfer request is 75 hours.
NOAA has made an educated estimate, based on its experience with
processing other types of permit or license hearings or appeals, that
the applicant may spend 200 hours of time preparing submittals for an
adjudicatory hearing if such hearing is requested or necessary. NOAA
anticipates that there may be 1 adjudicatory hearing per year for a
total of 200 annual burden hours.
In sum, the estimated annual public reporting burden hours for this
collection of information is 4,155 hours. The estimated total annual
wage burden costs would be $477,825 based on the Bureau of Labor
Statistics Occupational Outlook Handbook mean annual wage estimate for
Chief Executives (11-1011) at $239,200 (<a href="https://www.bls.gov/ooh/management/top-executives.htm#tab-5">https://www.bls.gov/ooh/management/top-executives.htm#tab-5</a>). The hourly wage rate was
calculated by dividing the mean annual salary by 2,080 hours for an
hourly wage rate of $115.
NOAA anticipates that the annual cost burden for applicable
entities taking advantage of the consolidated exploration license and
commercial recovery permit process is $350,000 for the fee for the
consolidated application which has been proposed to be set at $350,000,
which reflects inflation since the fee was initially set at $100,000.
With one anticipated consolidated application per year, this would be a
total estimated annual cost to respondents of $350,000 for the
consolidated permit process.
NOAA anticipates that the annual cost burden for applicants
submitting an exploration license application alone or a commercial
recovery permit application alone would be $100,000 for the application
fee. With an anticipated two exploration license applications and one
commercial recovery permit application per year, this would be a total
estimated annual cost to respondents of $300,000 for the exploration
license and commercial recovery permit applications. NOAA anticipates
that there may be one adjudicatory hearing per year. It is anticipated
that a respondent will hire an attorney for any adjudicatory hearings.
The cost anticipates the attorney will spend approximately 200 hours of
work submitting evidence, providing oral argument, and submitting
written arguments if desired. The mean hourly wage rate for a lawyer
(BLS occupational code 23-1011, <a href="https://data.bls.gov/oesprofile/">https://data.bls.gov/oesprofile/</a>) is
$87.86. A multiplier of 1.5 was used to calculate the loaded salary/
anticipated billing rate, for an hourly rate of $131.79. 200 hours x
$131.79/hr = $26,358.
In sum, the total estimated annual cost burden to respondents or
record keepers is $676,358. This total estimated annual cost burden
does not include the cost of wage burden hours described above; the
total estimated wage burden cost is $477,825 as described above.
These hour and cost estimates are subject to variations among
responsible entities depending on the size of the area being explored
or mined and the extent of operations. As NOAA gains experience with
the regulatory program, burden estimates will be revised.
The estimated annual federal salary cost to the U.S. Government is
$2,222,226. These estimates are based on base salaries calculated using
the General Schedule (GS) pay tables (<a href="https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2025/RUS.pdf">https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2025/RUS.pdf</a>) for
the Rest of U.S. location. The Rest of U.S. location was used since
NOAA employees are geographically dispersed. A multiplier of 1.5 was
used to calculate the loaded salary. The estimated number of federal
employees needed to process the information collection for the
applications and other reporting requirements are 20 employees, with
ten employees at a salary level of GS-15, five employees at a salary
level of GS-14, and five employees at a salary level of GS-13.
NOAA anticipates travel may be required for public hearings, with
an estimated annual cost of $48,000 based on an estimated four trips
per year for four staff, costing $3,000 each.
NOAA anticipates there may be one adjudicatory hearing per year.
The base salary cost for the Administrative Law Judge for the hearing
was calculated using the GS pay tables (<a href="https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2025/ALJ.pdf">https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2025/ALJ.pdf</a>)
and using a multiplier of 1.5 to obtain the loaded salary for an
estimated cost of $6,023.
In sum, the total estimated annual cost to the U.S. Government is
$2,276,249.
Public comment is sought regarding: whether this proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; the accuracy of the burden estimate; ways to
enhance the quality, use, and clarity of the information to be
collected; and ways to minimize the burden of the collection of
information, including through the use of automated collection
techniques or other forms of information technology. Submit comments on
these or any other aspects of the collection of information within 60
days of publication of this notice at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>.
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the PRA, unless that collection of information displays
a currently valid OMB Control Number.
National Environmental Policy Act
NOAA is analyzing this proposed rule in accordance with the
National Environmental Policy Act (NEPA, 42 U.S.C. 4321 et seq.), the
NOAA Administrative Order 216-6A, and the NOAA Companion Manual,
``Policy and Procedures for Compliance with the National Environmental
Policy Act and Related Authorities'' (effective January 13, 2017). This
proposed rule would establish a consolidated permit application process
without changing the substantive standards to which applications will
be held. NOAA believes that because this rulemaking includes only
technical changes to the regulatory text, it falls within a category of
actions that NOAA has found to have no significant individual or
cumulative effect on the quality of the human environment and therefore
may be excluded from the requirement to prepare an environmental
assessment or an environmental impact statement. Specifically, the
proposed rule is consistent with the criteria of categorical exclusion
reference number G7 in Appendix E of the NOAA Companion Manual,
Preparation of policy directives, rules, regulations, and guidelines of
an administrative, financial, legal, technical, or procedural nature,
or for which the environmental effects are too broad, speculative or
conjectural to lend themselves to meaningful analysis and will be
subject later to the NEPA process, either collectively or on a case-by-
case basis. NOAA has not identified any extraordinary circumstances
that would
[[Page 29813]]
preclude this categorical exclusion. Furthermore, as required by DSHMRA
(30 U.S.C. 1419(d)), NOAA will prepare an environmental impact
statement before issuing any license or permit. Therefore, NOAA has
preliminarily determined that this proposed rule would not result in
significant effects to the human environment and qualifies to be
categorically excluded from the need to prepare a further NEPA
analysis. NOAA will review all comments submitted in response to this
notice of proposed rulemaking prior to concluding our NEPA process and
finalizing this proposed rule.
List of Subjects in 15 CFR Parts 970 and 971
Administrative practice and procedure, Marine resources, Mineral
resources.
Laura Grimm,
Chief of Staff, Performing the Duties of Under Secretary of Commerce
for Oceans and Atmosphere and NOAA Administrator, National Oceanic and
Atmospheric Administration.
For the reasons stated in the preamble, NOAA proposes to revise 15
CFR parts 970 and 971 as follows:
PARTS 970 AND 971--DEEP SEABED MINING REGULATIONS FOR EXPLORATION
LICENSES AND COMMERCIAL RECOVERY PERMITS
0
1. The authority citation for parts 970 and 971 continues to read as
follows:
Authority: 30 U.S.C. 1401 et seq.
0
2. Amend Sec. 970.200 by revising paragraph (b) as follows:
Sec. 970.200 General.
* * * * *
(b) Place, form and copies. Applications for the issuance or
transfer of exploration licenses must be submitted in electronic
format, verified and signed by an authorized officer or other
authorized representative of the applicant, to an email address or
website as specified by NOAA. The application format shall be organized
according to the specific regulatory topics and sections.
* * * * *
0
3. Amend Sec. 970.209 by revising Sec. 970.209 to read as follows:
Sec. 970.209 Substantial compliance with application requirements.
(a) Priority of right for the issuance of licenses to new entrants
will be established on the basis of the chronological order in which
exploration license applications filed under Part 970, Subpart A and
consolidated license and permit applications filed under Sec. 971.214
that are in substantial compliance are received by the Administrator.
(b) In order for an application to be in substantial compliance, it
must include information specifically identifiable with and materially
responsive to the requirements contained in, as applicable, Sec. Sec.
970.201 through 970.208 or 971.214. A determination on substantial
compliance relates only to whether the application contains the
required information and does not constitute a determination on
certification of the application, or on issuance or transfer of a
license.
(c) The Administrator will notify the applicant in writing whether
the application is in substantial compliance within 30 days of receipt
of an application. The notice will identify, if applicable, in what
respects the application is not in either full or substantial
compliance. If the application is in substantial but not full
compliance, the notice will specify the information which the applicant
must submit in order to bring it into full compliance, and why the
additional information is necessary.
* * * * *
0
4. Amend Sec. 970.210 by revising Sec. 970.210 to read as follows:
Sec. 970.210 Reasonable time for full compliance.
Priority of right will not be lost in case of any application filed
which is in substantial but not full compliance, as specified in Sec.
970.209, if the Administrator determines that the applicant, within 60
days after issuance to the applicant by the Administrator of written
notice that the application is in substantial but not full compliance,
has brought the application into full compliance with the requirements,
as applicable, of Sec. Sec. 970.201 through 970.208 or 971.214.
0
5. Amend Sec. 971.200 by revising paragraph (b) to read as follows:
Sec. 971.200 General.
* * * * *
(b) Place, form and copies. An application for the issuance or
transfer of a commercial recovery permit must be submitted in
electronic format, verified and signed by an authorized officer or
other authorized representative of the applicant, to an email address
or website as specified by NOAA. The application format shall be
organized according to the specific regulatory topics and sections.
* * * * *
0
6. Amend Sec. 971.214 by revising Sec. 971.214 to read as follows:
Sec. 971.214 Consolidated license and permit procedures.
(a) General. Consolidated license and permit shall follow the
requirements in this section and not the requirements set forth in
Sec. Sec. 970.200 through 970.208, 970.400 through 970.408, 971.200
through 971.210, and 971.300 through 971.303. All other requirements
set forth in 15 CFR parts 970 and 971 shall apply to a consolidated
license and permit application and all the sections in parts 970 and
971, except for Sec. 971.214, shall continue to apply to individual
license or permit applications.
(b) Who may apply; how. Any United States citizen who can
demonstrate that he, she, or it possesses the scientific, technical,
and financial resources to pursue commercial recovery activities in an
expeditious and diligent manner may apply to the Administrator for
issuance or transfer of an exploration license and a commercial
recovery permit using the ``consolidated license and permit
procedures'' as set out in this section. Under these consolidated
procedures, a qualified applicant may submit a single consolidated
application that seeks both an exploration license and a commercial
recovery permit. The Administrator will issue a separate license and
permit to the applicant if the application complies with the Act and
regulations. The Administrator shall consolidate public hearings and
other proceedings for the concurrent processing of the issue or
transfer of the license or permit to the extent practicable. The
Administrator may also prepare a single environmental impact statement
that evaluates the impacts of both exploration activities and
commercial recovery activities. The Administrator shall issue separate
proposals to issue or transfer the license or permit; terms,
conditions, and restrictions for the license or permit; and licenses
and permits.
(c) Application and form of applications. The application shall
contain the items specified in this section. Each portion of the
application shall identify the requirements of this section to which it
responds. An applicant shall request to have any information in its
application be kept confidential at the time of submitting the
information. An applicant shall include information previously
submitted that the applicant will rely on in the consolidated license
and permit application. Applications shall be submitted electronically
as specified by the Administrator.
(d) Contents. The application shall contain information sufficient
to enable the Administrator to make the findings set forth in 30 U.S.C.
1415(a) and 15
[[Page 29814]]
CFR 970.500(c), 971.214(f), and 971.400(c), including the following
items.
(1) Past exploration description and affirmation. A description of
exploration activities undertaken prior to application submission by
the applicant, the proposed transferor, or other entities that
demonstrate that the applicant will be able to proceed to commercial
recovery with limited or no additional exploration.
(i) This shall contain information on when the work was performed,
what entity performed the work, the applicant's relationship to the
entity performing the work, and the applicant's access to the
information collected as a result, including the following items:
(A) Survey cruises to determine the location and abundance of
nodules as well as the sea floor configuration, ocean currents and
other physical characteristics of potential commercial recovery sites;
(B) Assaying nodules to determine their metal contents;
(C) Designing and testing system components onshore and at sea;
(D) Designing and testing mining systems that simulate commercial
recovery;
(E) Designing and testing processing systems to prove concepts and
designing and testing systems that simulate commercial processing; and
(F) Evaluating the continued feasibility of commercial scale
operations based on technical, economic, legal, and environmental
considerations.
(ii) An explanation for why the applicant qualifies to use the
consolidated license and permit procedures in this section, including
demonstrating that the need for further exploration activities in the
proposed license and permit area is minimal or not needed and the
applicant possesses the scientific, technical, and financial resources
to pursue commercial recovery activities in an expeditious and diligent
manner.
(iii) Documentation of any agreements, contracts, or partnerships
of other businesses or entities that the applicant will rely on for the
various parts of any exploration or commercial recovery operations or
financing.
(2) Statement of financial resources. Information sufficient to
demonstrate that the applicant is capable of committing or raising
sufficient resources to cover the estimated costs of the exploration
program contained in the exploration plan and the commercial recovery
program contained in the commercial recovery plan, including general
estimated costs of the exploration and commercial recovery plans. Other
information shall include, to the extent it is available, the most
recent audited financial statement (for publicly-held companies, the
most recent annual report and Form 10-K filed with the Securities and
Exchange Commission) for the applicant and those entities upon which
the applicant will rely to finance the exploration activities and the
credit and bond rating of the applicant and such financing entities.
(3) Statement of technological experience and capabilities.
Information sufficient to demonstrate that the applicant has the
technological capability to carry out the exploration program contained
in the exploration plan and the commercial recovery program contained
in the commercial recovery plan. In particular, the information
submitted pursuant to this section shall describe the equipment,
knowledge, and skills the applicant possesses or to which it can
demonstrate access, including:
(i) A description of the exploration equipment to be used by the
applicant in carrying out the exploration program;
(ii) A description of the environmental monitoring equipment to be
used by the applicant in monitoring the environmental effects of the
exploration program;
(iii) A description of the technology, equipment, and methods to be
used by the applicant in carrying out each step in the mining process,
including nodule collection, retrieval, transfer to ship, environmental
monitoring, transport to processing facilities, nodule processing,
waste disposal and compliance with applicable water quality standards.
The description shall include:
(A) An analysis of the performance of experimental systems, sub-
systems, or analogous machinery;
(B) The rationale for extrapolating from test results to commercial
mining;
(C) Anticipated system reliability within the context of
anticipated production time lost through equipment failure; and
(D) A functional description of the types of technical
qualifications the applicant will require for persons operating its
equipment.
(4) Exploration plan. A description of the applicant's proposed
exploration activities including: sufficient information for the
Administrator to make the necessary determinations pertaining to the
certification and issuance of a license and to the development and
enforcement of the terms, conditions and restrictions (TCRs) for a
license; and the following specific items:
(i) A description of the activities proposed to be carried out
during the period of the license;
(ii) A description of the area that will be explored, including its
delineation according to Sec. 970.601;
(iii) The intended exploration schedule addressing which of the
following exploration activities the applicant intends to conduct after
the issuance of the license and when each of these proposed activities
will occur:
(A) Conducting survey cruises to determine the location and
abundance of nodules as well as the sea floor configuration, ocean
currents and other physical characteristics of potential commercial
recovery sites;
(B) Assaying nodules to determine their metal contents;
(C) Designing and testing system components onshore and at sea;
(D) Designing and testing mining systems which simulate commercial
recovery;
(E) Designing and testing processing systems to prove concepts and
designing and testing systems which simulate commercial processing; and
(F) Evaluating the continued feasibility of commercial scale
operations based on technical, economic, legal, political and
environmental considerations;
(iv) For exploration activities that the applicant intends to
conduct under an exploration license:
(A) A description of the methods to determine the location,
abundance, and quality (i.e., assay) of nodules and to measure physical
conditions in the area that will affect nodule recovery system design
and operations (e.g., seafloor topography, seafloor geotechnic
properties, and currents);
(B) A general description of the recovery and processing technology
related to the proposed license and of any planned testing and
evaluation of such technology addressing such factors as nodule
collection technique, seafloor sediment rejection subsystem, mineship
nodule separation scheme, pumping method, anticipated equipment test
areas, and details on the testing plan; and
(C) Measures to protect the environment and to monitor the
effectiveness of environmental safeguards and monitoring systems. These
measures must take into account the provisions in Sec. Sec. 970.506,
970.518, 970.522 and subpart G of this part.
(5) Commercial Recovery Plan. Description of the applicant's
projected commercial recovery activities for the twenty-year period to
be covered by the proposed permit, including: sufficient information
for the Administrator to
[[Page 29815]]
make the necessary determinations pertaining to the certification and
issuance of a permit and to the development and enforcement of the TCRs
for a permit; and the following specific items:
(i) A description of the activities proposed to be carried out
during the period of the permit;
(ii) The intended schedule of commercial recovery (see ``Diligent
commercial recovery,'' Sec. 971.503);
(iii) Environmental safeguards and monitoring systems, which must
take into account requirements under subpart F of this part, including
best available technologies (BAT) (Sec. 971.604) and monitoring (Sec.
971.603);
(iv) Details of the area or areas proposed for commercial recovery,
which meet requirements for diligence (Sec. 971.503) and conservation
of resources pursuant to subpart E (especially Sec. 971.502);
(v) A resource assessment of the area or areas proposed for
commercial recovery which meets the requirements for resource
assessment and logical mining unit (Sec. 971.501);
(vi) A description of the methods and technology to be used for
commercial recovery and processing (see Sec. 971.202(b)(1)); and
(vii) The methods to be used for disposal of wastes from recovery
and processing, including the areas for disposal and identification of
any toxic substances in wastes.
(6) Environmental and use conflict analysis. Sufficient marine
environmental information for the Administrator to prepare an
environmental impact statement (EIS) on the proposed activities in the
consolidated license and permit application and to determine the
appropriate permit TCRs, including:
(i) Physical, chemical and biological information describing the
environmental characteristics of the relevant area, including relevant
environmental information obtained during past exploration activities;
(ii) A monitoring plan for any proposed but not yet completed
exploration activities, including test mining, and any at-sea
commercial recovery activities that meets the objectives and
requirements of Sec. 971.603;
(iii) Information known to the applicant on other uses of the
proposed mining area to support the Administrator's determination
regarding potential use conflicts between commercial mining activities
and those activities of other nations or of other U.S. citizens and to
assist the Administrator in making determinations related to potential
use conflicts pursuant to Sec. Sec. 970.503, 970.505, 970.520,
971.403, 971.405, and 971.421; and
(iv) Onshore information including the location and operation of
nodule processing facilities in accordance with Sec. 971.606.
The Administrator may require the submission of additional data in
the event the Administrator determines that the basis for a suitable
EIS or a determination of appropriate TCRs is not available.
(7) Vessel safety and documentation. In order to provide a basis
for the necessary determinations with respect to the safety of life and
property at sea, the application shall contain the following
information for vessels used for the purposes covered by the
application, except for vessels under 300 gross tons which are engaged
in oceanographic research:
(i) U.S. flag vessel. A demonstration or affirmation that any U.S.
flag vessel used in exploration activities will possess a current valid
Coast Guard Certificate of Inspection (COI). All mining ships and at
least one of the transport ships used by each permittee must be
documented under the laws of the United States. To the extent that the
applicant knows which U.S. flag vessels it will use, it shall include
with its application copies of the vessels' current valid Coast Guard
COIs.
(ii) Foreign flag vessels. To the extent that the applicant knows
which foreign flag vessel(s) it will be using for other purposes, the
application shall include evidence that:
(A) Any foreign flag vessel whose flag state is party to the
International Convention for the Safety of Life at Sea, 1974 (SOLAS 74)
possesses current valid SOLAS 74 certificates;
(B) Any foreign flag vessel whose flag state is not party to SOLAS
74 but is party to the International Convention for the Safety of Life
at Sea, 1960 (SOLAS 60) possesses current valid SOLAS 60 certificates;
and
(C) Any foreign flag vessel whose flag state is not a party to
either SOLAS 74 or SOLAS 60 meets all applicable structural and safety
requirements contained in the published rules of a member of the
International Association of Classification Societies (IACS).
(iii) Supplemental certificates. If the applicant does not know at
the time of submitting an application which vessels it will be using,
it shall submit the applicable certification to the Administrator for
each vessel before the cruise on which it will be used.
(8) Statement of Ownership. Sufficient information to demonstrate
that the applicant is a U.S. citizen, including:
(i) Name, address, and telephone number of the U.S. citizen
responsible for exploration operations to whom notices and orders are
to be delivered; and
(ii) A description of the citizen or citizens engaging in such
exploration, including
(A) Whether the citizen is a natural person, partnership,
corporation, joint venture, or other form of association;
(B) The state of incorporation or state in which the partnership or
other business entity is registered;
(C) The name of registered agent or equivalent representative and
places of business;
(D) Certification of essential and nonproprietary provisions in
articles of incorporation, charter or articles of association; and
(E) The name of each member of the association, partnership, or
joint venture, including information about the participation of each
partner and joint venturer and/or ownership of stock.
(9) Antitrust information. In order to facilitate antitrust review
pursuant to section 103(d) of the Act, the application shall contain:
(i) A copy of each agreement between any parties to any joint
venture which is applying for a license, provided that said agreement
relates to deep seabed hard mineral resource exploration or mining;
(ii) The identity of any affiliate of any person applying for a
license; and
(iii) For each applicant, its affiliate, or parent or subsidiary of
an affiliate which is engaged in production in, or the purchase or sale
in or to, the United States of copper, nickel, cobalt or manganese
minerals or any metals refined from these minerals:
(A) The annual tons and dollar value of any of these minerals and
metals so purchased, sold or produced for the two preceding years;
(B) Copies of the annual report, balance sheet and income statement
for the two preceding years; and
(C) Copies of each document submitted to the Securities and
Exchange Commission.
(10) Fee. A fee payment of $350,000 payable to the National Oceanic
and Atmospheric Administration, Department of Commerce, shall accompany
each application. If the administrative costs of reviewing and
processing the application are significantly less than or in excess of
$350,000, the Administrator will refund the difference or require the
applicant to
[[Page 29816]]
pay the additional amount before issuance or transfer of the license or
permit. In the case of an application for transfer of a license or
permit to, or for a significant change to a license or permit held by,
an entity that has previously been found qualified for a permit, the
Administrator may reduce the fee in advance by an appropriate amount
which reflects costs avoided by reliance on previous findings made in
relation to the proposed transferee. Payment of the application fee
does not determine priority of right.
(11) Processing outside the United States. Except as provided in
this section and Sec. 971.408, the processing of hard minerals
recovered pursuant to a permit shall be conducted within the United
States, provided that the President or his designee does not determine
that this restriction contravenes the overriding national interests of
the United States. The application shall contain the information
outlined in Sec. 971.408 if applicable.
(e) Certification. To the maximum extent practicable, the
Administrator will certify a consolidated application within 100 days
of the submission of an application which is in full compliance. If
final certification or denial of certification has not occurred within
100 days after submission of the application, the Administrator shall
inform the applicant in writing of the then pending unresolved issues,
the agency's efforts to resolve them, and an estimate of the time
required to do so. Certification will occur after consultation with
other departments and agencies pursuant to Sec. 970.211 and
determining in writing that:
(1) The applicant is qualified to use this consolidated license and
permit application procedure as the applicant has demonstrated that the
need for further exploration activities in the proposed license and
permit area is minimal or not needed and the applicant possesses the
scientific, technical, and financial resources to pursue commercial
recovery activities in an expeditious and diligent manner.
(2) The issuance or transfer of the license and the permit would
not violate any of the restrictions of 15 CFR 970.103(b).
(3) The size and location of the exploration and commercial
recovery area selected by the applicant is a logical mining unit under
Sec. 971.501.
(4) The applicant:
(i) Has demonstrated that, upon issuance or transfer of the license
and the permit, the applicant will be financially responsible to meet
all obligations which may be required to engage in its proposed
exploration and commercial recovery activities;
(ii) Has demonstrated that, upon license and permit issuance or
transfer, will possess or have access to the technological capability
to engage in the proposed exploration and commercial recovery;
(iii) Has satisfactorily fulfilled all past obligations under any
license or permit previously issued or transferred to the applicant
under the Act;
(iv) Has an exploration plan which meets the requirements of Sec.
971.214(d)(4);
(v) Has a commercial recovery plan which meets the requirements of
Sec. 971.214(d)(5); and
(vi) Has paid the application fee specified in Sec.
971.214(c)(10).
(5) Issuing the exploration license and the commercial recovery
permit described in the application would not violate any of the
restrictions in Sec. 970.103(b).
(f) Denial of Certification. The Administrator may deny
certification of an application if it does not meet the requirements of
paragraph (e) of this section or the requirements for issuance or
transfer under Sec. Sec. 970.503 through 970.507 or Sec. Sec. 971.403
through 971.408. The Administrator shall send to the applicant and
publish in the Federal Register written notice of a proposed denial of
certification.
(1) Such notice shall include:
(i) The basis for the denial;
(ii) If the basis for the proposed denial is because the applicant
is not qualified to use consolidated procedures under this subsection:
(A) The reasons for that determination;
(B) The time within which the applicant may submit an amended
application for an exploration license under Part 970 without
disturbing the applicant's priority of right, which shall be 60 days
except as specified by the Administrator for good cause; and
(C) The number of days from receipt of the amended application in
which the Administrator will certify or deny certification of the
amended application in accordance with 15 CFR 970.400. The
Administrator shall endeavor to complete certification of an amended
application within 50 days of receipt.
(iii) If the basis for the proposed denial is a deficiency that the
applicant can correct:
(A) How to correct the deficiency; and
(B) The time within which the corrected application must be
submitted, which will not exceed 180 days except as specified by the
Administrator for good cause.
(2) The Administrator shall deny certification:
(i) On the 30th day after the date the notice is sent to the
applicant, under paragraph (f) of this section unless before that date
the applicant files with the Administrator a written request for an
administrative review of the proposed denial; or
(ii) On the last day of the period established under paragraph
(f)(1)(ii)(B) of this section during which the applicant may submit an
amended application for an exploration license under part 970, if the
applicant fails to submit such an amended application before such day
and an administrative review requested pursuant to paragraph (f)(2)(i)
of this section is not pending;
(iii) On the last day of the period established under paragraph
(f)(1)(iii)(B)) of this section during which the applicant may correct
a deficiency, if such deficiency has not been corrected before such day
and an administrative review requested pursuant to paragraph (f)(2)(i)
of this section is not pending.
(3) If a timely request for administrative review of the proposed
denial is made by the applicant under paragraph (c)(1) of this section,
the Administrator will promptly begin a formal hearing in accordance
with subpart I of 15 CFR part 971. If the proposed denial is the result
of a correctable deficiency, the administrative review will proceed
concurrently with any attempts to correct the deficiency, unless the
parties agree otherwise or the administrative law judge orders
differently.
(4) The Administrator will send the applicant written notice of any
denial of certification including the reasons therefore.
(5) Any final determination granting or denying certification is
subject to judicial review as provided in Chapter 7 of Title 5, United
States Code.
(g) Effect of this section on pending applications. Within 60 days
of this rule becoming final, an applicant who has an application for a
license pending before the Administrator may notify the Administrator
in writing of its intention to proceed under these consolidated
procedures. Such applicants shall submit an amended application that
complies with this subpart, and the amended application shall be
processed in accordance with this subpart.
0
7. Amend Sec. 971.802 by revising paragraph (a), removing paragraphs
(b) through (e), and redesignating paragraphs (f) and (g) as paragraphs
(b) and (c) to read as follows:
[[Page 29817]]
Sec. 971.802 Public disclosure of documents received by NOAA.
(a) Procedures for requesting confidential treatment of information
submitted to, reported to, or collected by the Administrator pursuant
to this part and 15 CFR part 970 will be in accordance with 15 CFR part
4. Procedures for requesting records and handling requests for records
containing information submitted to, reported to, or collected by the
Administrator pursuant to this part and 15 CFR part 970 will also be in
accordance with 15 CFR part 4.
(b) * * *
(c) * * *
[FR Doc. 2025-12513 Filed 7-3-25; 8:45 am]
BILLING CODE 3510-08-P
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</html>Indexed from Federal Register on July 7, 2025.
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