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Article 6
Approval of plans of work
1. Six months after the entry into force of this Convention, and thereafter
each fourth month, the Authority shall take up for consideration proposed
plans of work.
2. When considering an application for approval of a plan of work in the
form of a contract, the Authority shall first ascertain whether:
- the applicant has complied with the procedures established for
applications in accordance with article 4 of this Annex and has given
the Authority the undertakings and assurances required by that
article. In cases of non-compliance with these procedures or in the
absence of any of these undertakings and assurances, the applicant
shall be given 45 days to remedy these defects;
- the applicant possesses the requisite qualifications provided for in
article 4 of this Annex.
3. All proposed plans of work shall be taken up in the order in which they
are received. The proposed plans of work shall comply with and be governed
by the relevant provisions of this Convention and the rules, regulations
and procedures of the Authority, including those on operational
requirements, financial contributions and the undertakings concerning the
transfer of technology. If the proposed plans of work conform to these
requirements, the Authority shall approve them provided that they are in
accordance with the uniform and nondiscriminatory requirements set forth in
the rules, regulations and procedures of the Authority, unless:
- part or all of the area covered by the proposed plan of work is
included in an approved plan of work or a previously submitted
proposed plan of work which has not yet been finally acted on by the
Authority;
- part or all of the area covered by the proposed plan of work is
disapproved by the Authority pursuant to article 162, paragraph 2
(x); or
- the proposed plan of work has been submitted or sponsored by a State
Party which already holds:
- plans of work for exploration and exploitation of polymetallic
nodules in non-reserved areas that, together with either part of the
area covered by the application for a plan of work, exceed in size 30
per cent of a circular area of 400,000 square kilometres surrounding
the centre of either part of the area covered by the proposed plan of
work;
- plans of work for the exploration and exploitation of
polymetallic nodules in non-reserved areas which, taken together,
constitute 2 per cent of the total sea-bed area which is not reserved
or disapproved for exploitation pursuant to article 162, paragraph
(2) (x).
4. For the purpose of the standard set forth in paragraph 3(c), a plan of
work submitted by a partnership or consortium shall be counted on a pro
rata basis among the sponsoring States Parties involved in accordance with
article 4, paragraph 3, of this Annex. The Authority may approve plans of
work covered by paragraph 3 (c) if it determines that such approval would
not permit a State Party or entities sponsored by it to monopolize the
conduct of activities in the Area or to preclude other States Parties from
activities in the Area.
5. Notwithstanding paragraph 3(a), after the end of the interim period
specified in article 151, paragraph 3, the Authority may adopt by means of
rules regulations and procedures other procedures and criteria consistent
with this Convention for deciding which applicants shall have plans of work
approved in cases of selection among applicants for a proposed area. These
procedures and criteria shall ensure approval of plans of work on an
equitable and nondiscriminatory basis.
Article 7
Selection among applicants for production authorizations
1. Six months after the entry into force of this Convention and thereafter
each fourth month, the Authority shall take up for consideration
applications for production authorizations submitted during the immediately
preceding period. The Authority shall issue the authorizations applied for
if all such applications can be approved without exceeding the production
limitation or contravening the obligations of the Authority under a
commodity agreement or arrangement to which it has become a party, as
provided in article 151.
2. When a selection must be made among applicants for production
authorizations because of the production limitation set forth in article
151, paragraphs 2 to 7, or because of the obligations of the Authority
under a commodity agreement or arrangement to which it has become a party,
as provided for in article 151, paragraph 1, the Authority shall make the
selection on the basis of objective and non-discriminatory standards set
forth in its rules, regulations and procedures.
3. In the application of paragraph 2, the Authority shall give priority to
those applicants which:
- give better assurance of performance, taking into account their
financial and technical qualifications and their performance, if any,
under previously approved plans of work;
- provide earlier prospective financial benefits to the Authority,
taking into account when commercial production is scheduled to begin;
- have already invested the most resources and effort in prospecting or
exploration.
4. Applicants which are not selected in any period shall have priority in
subsequent periods until they receive a production authorization.
5. Selection shall be made taking into account the need to enhance
opportunities for all States Parties, irrespective of their social and
economic systems or geographical locations so as to avoid discrimination
against any State or system, to participate in activities in the Area and
to prevent monopolization of those activities.
6. Whenever fewer reserved areas than non-reserved areas are under
exploitation, applications for production authorizations with respect to
reserved areas shall have priority.
7. The decisions referred to in this article shall be taken as soon as
possible after the close of each period.
Article 8
Reservation of areas
Each application, other than those submitted by the Enterprise or by any
other entities for reserved areas, shall cover a total area, which need not
be a single continuous area, sufficiently large and of sufficient estimated
commercial value to allow two mining operations. The applicant shall
indicate the coordinates dividing the area into two parts of equal
estimated commercial value and submit all the data obtained by him with
respect to both parts. Without prejudice to the powers of the Authority
pursuant to article 17 of this Annex, the data to be submitted concerning
polymetallic nodules shall relate to mapping, sampling, the abundance of
nodules, and their metal content. Within 45 days of receiving such data,
the Authority shall designate which part is to be reserved solely for the
conduct of activities by the Authority through the Enterprise or in
association with developing States. This designation may be deferred for a
further period of 45 days if the Authority requests an independent expert
to assess whether all data required by this article has been submitted. The
area designated shall become a reserved area as soon as the plan of work
for the non-reserved area is approved and the contract is signed.
Article 9
Activities in reserved areas
1. The Enterprise shall be given an opportunity to decide whether it
intends to carry out activities in each reserved area. This decision may be
taken at any time, unless a notification pursuant to paragraph 4 is
received by the Authority, in which event the Enterprise shall take its
decision within a reasonable time. The Enterprise may decide to exploit
such areas in joint ventures with the interested State or entity.
2. The Enterprise may conclude contracts for the execution of part of its
activities in accordance with Annex IV, article 12. It may also enter into
joint ventures for the conduct of such activities with any entities which
are eligible to carry out activities in the Area pursuant to article 153,
paragraph 2(b). When considering such joint ventures, the Enterprise shall
offer to States Parties which are developing States and their nationals the
opportunity of effective participation.
3. The Authority may prescribe, in its rules, regulations and procedures,
substantive and procedural requirements and conditions with respect to such
contracts and joint ventures.
4. Any State Party which is a developing State or any natural or juridical
person sponsored by it and effectively controlled by it or by other
developing State which is a qualified applicant, or any group of the
foregoing, may notify the Authority that it wishes to submit a plan of work
pursuant to article 6 of this Annex with respect to a reserved area. The
plan of work shall be considered if the Enterprise decides, pursuant to
paragraph 1, that it does not intend to carry out activities in that area.
Article 10
Preference and priority among applicants
An operator who has an approved plan of work for exploration only, as
provided in article 3, paragraph 4(c), of this Annex shall have a
preference and a priority among applicants for a plan of work covering
exploitation of the same area and resources. However, such preference or
priority may be withdrawn if the operator's performance has not been
satisfactory.
1. Contracts may provide for joint arrangements between the contractor and
the Authority through the Enterprise, in the form of joint ventures or
production sharing, as well as any other form of joint arrangement, which
shall have the same protection against revision, suspension or termination
as contracts with the Authority.
2. Contractors entering into such joint arrangements with the Enterprise
may receive financial incentives as provided for in article 13 of this
Annex.
3. Partners in joint ventures with the Enterprise shall be liable for the
payments required by article 13 of this Annex to the extent of their share
in the joint ventures, subject to financial incentives as provided for in
that article.
Article 12
Activities carried out by the Enterprise
1. Activities in the Area carried out by the Enterprise pursuant to article
153, paragraph 2(a), shall be governed by Part XI, the rules, regulations
and procedures of the Authority and its relevant decisions.
2. Any plan of work submitted by the Enterprise shall be accompanied by
evidence supporting its financial and technical capabilities.
Previous
Convention on the Law of the Sea: Index
Parts:
I -
II -
III -
IV -
V -
VI -
VII -
VIII-IX -
X -
XI -
XII -
XIII -
XIV -
XV -
XVI -
XVII
Annexes:
I -
II -
III -
IV -
V -
VI -
VII -
VIII -
IX
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