SEABED COUNCIL HEARS VIEWS ON INFORMATION TO BE REQUIRED FROM CONTRACTORS
Press Release
SEA/1667
SEABED COUNCIL HEARS VIEWS ON INFORMATION TO BE REQUIRED FROM CONTRACTORS
20000328(Received from the International Seabed Authority.)
KINGSTON, 27 March -- The Council of the International Seabed Authority heard divergent views on the types of information seabed operators should report to the Authority as it continued in Kingston this morning its informal second reading of the draft mining code for the exploration of polymetallic nodules in the deep seabed.
At the close of this initial exchange of views, the Council agreed to return this afternoon to the format of closed-door informal informal meetings. The Council held the first of those private meetings Friday afternoon, 24 March. It is seeking to iron out differences over the central issues of what information operators should provide and how to define and safeguard the kinds of information deemed confidential. It will meet again tomorrow, 28 March, to resume its informal, open-door consultations.
Noting that the Council still had much work ahead of it on the draft exploration regulations, Secretary-General Satya N. Nandan informed delegates that interpretation facilities for night meetings were available through Wednesday, 29 March, if the Council wished to use them. The current part of the Authority's 2000 session will conclude on Friday, 31 March.
The provision discussed this morning spells out the kinds of information to be included in annual reports by contractors to the Secretary-General on their activities in the seabed exploration area. This information is to cover the year's exploration work, an estimation of mineable areas, equipment used, environmental parameters, results of environmental monitoring, contractors' training programmes for persons from developing countries and the Authority, the quantity of nodules recovered, exploration expenditures and any proposed adjustments to the contractors' work programmes. The contractor would also have to keep a sample of nodules obtained and, on request, deliver a portion to the Authority for analysis.
This topic is dealt with in section 10 of annex 4 to the draft regulations (ISBA/5/C/4/Rev.1), the annex that defines standard clauses for exploration contracts between the Authority and seabed operators.
This topic was broached on Friday when one delegation proposed to delete references to several types of information required of contractors. The proposal would also limit the information called for on expiration of a contract, covered by section 11 of the standard-clauses annex.
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The Council began this morning with an overview by Secretary-General Nandan of the need for the various categories of information called for in section 10.
Mr. Nandan reminded the delegates of the Authority's role as an administrative body charged with managing the resources of the international seabed area. He said there must be both balance and fairness in the reporting structure being established between contractors, who would make large investments and take risks with a view to making a profit, and the Authority, charged with protecting the common heritage of mankind.
He went on to say that contractors must provide meaningful reports to the secretariat to allow the Authority to make informed decisions. Information was not being sought, for example, on the design of the technology used for exploration, only on the results of such activity. The Authority needed detailed information on the content of recovered metal samples to estimate the profit potential of the area to be mined, in terms of the quality and quantity of deposits. Mr. Nandan said this information would be needed in future to set taxation levels once exploitation began.
The Secretary-General said the contractor's annual report must include details on the nature of equipment being used in exploration activities so that the Authority could assess any potential damage to the marine environment. Another requirement was for a statement of the quantity of polymetallic nodules recovered as samples or for testing purposes. Such data would help the Authority verify whether consistent large-scale removal of nodules might constitute exploitation rather than exploration.
He noted that the Legal and Technical Commission, which drafted the regulations and annexes, had spent much time debating the clause requiring the contractor to retain a representative portion of nodule samples until the contract expired. According to Mr. Nandan, that requirement was to enable the secretariat to verify details in the report.
The Secretary-General remarked that the requirements placed on seabed operators were mild compared to those imposed by other international mining contracts. Citing a phrase used by former United States President Ronald Reagan in another context, he said the regulations were guided by the approach, trust but verify.
One speaker called today for the deletion of parts of section 10 requiring the contractor to give details about the testing of technologies, the estimation of mineable areas, and the grade and quantity of polymetallic nodule reserves found. Such information, it was felt, went far beyond what should be required of contractors. That delegation also argued that there was no indication that the clause calling for details of exploration equipment did not include the design of equipment. In any event, the Authority did not need such details in order to carry out its functions. The speaker felt also that the responsibility
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of the contractor to submit additional reports from time to time at the request of the Secretary-General was too burdensome, and questioned the purpose of providing samples of polymetallic nodules.
Another delegation, questioning the practicability of an annual report on specific technical information that might take years to develop into any meaningful data, suggested an interim biennial report with a more detailed presentation every five years.
A number of delegations opposed any amendments to section 10 that would reduce the amount of information to be supplied by contractors. Limiting the information flow, in their view, would impair the Authority's ability to discharge properly its mandate to administer the resources of the international seabed area, especially with regard to protection of the marine environment. One speaker remarked that, if the contractors objected to providing certain information in annual and final reports, such reluctance might hamper the Authority's work in inspecting seabed activities, provided for under section 14 of the standard clauses.
Some who supported the text in its present form pointed out that the Legal and Technical Commission had extensively debated the matter of information and reports when drafting the regulations. One member warned against allowing the pioneer investors to make seemingly minor amendments that might have many implications in practical terms.
Other members suggested that delegations proposing amendments should submit their proposals in writing to allow all participants to examine them more closely. Another suggestion was that those opposed to the text should outline what information they thought the contractors would be willing to provide.
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