Deep Seabed Mining: Revisions to Regulations for Exploration License and Commercial Recovery Permit Applications

Comment 28. A commenter expressed confusion as to which provisions of Parts 970 and 971 apply to a consolidated exploration license and commercial recovery permit application. The commenter requested that NOAA redesignate the existing text of paragraph (a) as paragraph (a)(2) and insert a new paragraph (a)(1) at the outset of Sec. 971.214(a) as follows: “(1) Applicability and Order of Precedence. This section governs all applications that seek both exploration and commercial recovery under DSHMRA. Except as expressly modified herein, applicants must comply with any provision of Parts 970 and 971 that is not in conflict with the requirements of this section. In the event of any conflict or inconsistency between any provision of this section and any provision of Parts 970 or 971, the provision of this section shall control.”

Response. To accommodate the concerns expressed in the comment, NOAA has added some of the suggested text to paragraph (a) and changed the title of paragraph (a). NOAA has also made some minor conforming edits to this text to further clarify the applicability of the referenced sections. NOAA agrees that adding some of the proposed text provides clarification regarding the meaning of this section, and it does not alter substantive obligations.

Comment 29. A commenter requested that NOAA replace each citation that now reads “Sec. 970.103(b)” with the exact subsection housing the relevant text. For example, any reference to the definition of “deep seabed” would become “Sec. 970.103(b)(1)(i),” and references relating to financial assurance requirements would become “Sec. 970.103(b)(2)(ii).”

Response. It is not clear what the commenter is referring to. In the proposed regulatory text for Sec. 971.214, there are only two references to Sec. 970.103(b), and one of these is a duplicate that NOAA has removed (proposed paragraph (e)(5)). The one use of Sec. 970.103(b) is meant to cover all the restrictions in that section.

Comment 30. Commenters stated that under Sec. 971.214(d), there are no objective thresholds for how applicants can demonstrate scientific, technical, and financial resources and show the need for further exploration activities is minimal or not needed. Commenters requested that NOAA provide clear guidance on documentation

expectations, such as publishing illustrative thresholds.

Response. The Act and NOAA's regulations contain substantial guidance for the information needed to support the issuance of an exploration license and commercial recovery permit. The information required will be the same under the consolidated license and permit procedure. To the extent an interested party has additional questions, under existing regulations, applicants are encouraged (and in some cases required) to engage in pre-application consultations. The scientific, technical, and financial resources necessary and the types of documentation required will necessarily depend on the applicant's chosen exploration and commercial recovery plan, and through the pre- application consultation process NOAA can work with applicants to clarify requirements given an interested party's specific situation. In addition, NOAA is updating its DSHMRA technical guidance in a process that is separate from this rulemaking. Updating the technical guidance is critical for having data acquisition standards for monitoring potential impacts. NOAA expects to release a draft of the revised technical guidance for public review later this year. As NOAA gains experience with new DSHMRA applications, NOAA may provide additional guidance regarding thresholds for net financial resources or technological capabilities.

NOAA is not pre-determining, even by providing non-binding examples, what information a prospective applicant for the consolidated license and permit might propose to NOAA to demonstrate that it is eligible for a consolidated license and permit application and that the applicant could proceed to commercial recovery in an expeditious and diligent manner. As described in greater detail below, however, NOAA has removed the reference to “the need for further exploration activities” in order to clarify the required qualifications for using the consolidated application process.

Comment 31. A commenter stated that under Sec. 971.214(e), NOAA must certify a consolidated application or identify any deficiencies within 100 days of submission. The commenter expressed confusion about how this provision relates to Sec. 970.210, which allows a 60-day cure period for “substantial but not full compliance,” a window that can extend past the 100-day review deadline and leave stakeholders unsure which clock governs. The commenter argued that the rule should state the 100-day review clock is suspended when NOAA issues a cure notice and resumes only once all deficiencies are fully resolved.

Response. The 60-day period for an application to meet full compliance in Sec. 970.210 serves a different purpose than the 100-day certification period in 30 U.S.C. 1413(g), Sec. 970.400(c), and the new Sec. 971.214(e). The 100-day period begins after the 60-day period. The 60-day period begins when NOAA finds an application to be in substantial compliance, but not full compliance, and the applicant then has 60 days to provide the information NOAA has identified that is needed for full compliance. The 60-day period in Sec. 970.210 applies to exploration license applications submitted as part of a consolidated license and permit application under Sec. 971.214. The 100-day period begins once NOAA finds an application to be in full compliance; NOAA then has 100 days to certify the application. This has been NOAA's long-standing interpretation of the Act and the regulations regarding the 100-day period for certification of an application for an exploration license. NOAA interprets the phrase “submission of the application which is in full compliance” as the date of the submission of the amended application that is in full compliance. Therefore, NOAA interprets references to a license “application” in both the Act and Part 970 to refer to a fully compliant, and not substantially compliant, application for purposes of starting the certification 100- day period. Similarly, NOAA interprets references to permit applications in both the Act and Part 971 to refer to fully complete applications, and not incomplete applications, for purposes of starting the 100-day certification period. See 15 CFR 971.300(c).

Comment 32. A commenter argued that NOAA should formalize notification for permits beyond areas of national jurisdiction. The commenter stated this approach mirrors the “due regard” duty articulated in LOSC Article 56(2) and the LOSC Part XI provisions (Arts. 138-140) that underlie ISA procedures, demonstrating good-faith adherence to customary obligations under the “common heritage of mankind” principle.

Response. The Act and NOAA's regulations contain provisions for interagency coordination, including coordination with the Department of State, and NOAA complies with this requirement. The Act and regulations also provide for public notification of and comment on applications that are in full compliance. In keeping with this requirement, NOAA notifies the public and provides an opportunity to comment--worldwide via the Federal Register and regulations.gov--to applications that are in full compliance, and NOAA considers public comments on such applications before NOAA makes final decisions on whether to issue DSHMRA licenses or permits. In addition, the Act and the regulations contain provisions that are sufficient for NOAA and the public to evaluate whether there are any potential use conflicts in a proposed area of the ocean beyond national jurisdiction. If any potential use conflicts exist, NOAA can develop appropriate TCRs for DSHMRA licenses or permits to address such conflicts. In addition, informal dialogue and consultation or formal negotiation can be used to address potential use conflicts that may remain or may later arise.

Comment 33. Some commenters argued that the consolidated application fee is too high. Commenters argued that the proposed consolidated-permit process risks entrenching the largest, best-funded operators at the expense of smaller innovators and is potentially exclusionary and disadvantages smaller entrants to the market and diversified competition. For startups and small marine tech firms, commenters thought this fee may present a prohibitive barrier to market entry. Commenters argued NOAA should adopt a sliding-scale, tiered, or phased fee structure that reduces upfront costs for entities with lower annual revenues or early-stage exploration achievements. A commenter argued that NOAA has not shown that the increased fee aligns with the actual costs incurred per application. Commenters also requested that NOAA implement a grandfather provision whereby applications submitted prior to the effective date of the new rule would be subject to the fee schedule in effect at the time of submission under the existing rule prior to the proposals.

Response. The Act, 30 U.S.C. 1414, requires that NOAA establish a “reasonable administrative fee” that “shall reflect the reasonable administrative costs incurred in reviewing and processing the application” for a license or permit. NOAA has set a $350,000 fee for the consolidated license and permit application, which partially accounts for inflation that has occurred in the time since the fee was set at $100,000.\3\

While an inflation adjustment alone would result in an amount greater than $350,000, the $350,000 amount is a reasonable initial fee for the consolidated license and permit process, given technological improvements that may increase the efficiency of application processing. In addition, under Sec. Sec. 970.208, 971.208, and 971.214, regardless of the initial fee ($100,000 or $350,000), NOAA may adjust the fee up or down for each application, depending on the administrative costs incurred. If, after further experience processing consolidated applications, NOAA determines that the reasonable cost of processing these applications is higher or lower than the estimated $350,000, NOAA may promulgate new rules further adjusting the initial application fee.

\3\ Using the Office of Management and Budget (OMB) recommended Gross Domestic Product (GDP) deflator, adjusting $200,000 ($100,000 each for an exploration license application and a commercial recovery permit application) from 1989 to 2024 would be $438,144, substantially more than the $350,000.

Given the estimated costs of exploration and commercial recovery programs that an applicant must be financially responsible for carrying out, see 30 U.S.C. 1413(c)(1), NOAA does not expect this initial fee to pose an undue barrier to entry to smaller businesses who wish to submit consolidated applications. See the Final RIA for more information.

After this rule becomes effective, in the instances where an applicant has a pending exploration license application and then submits a consolidated license and permit application, NOAA will determine the additional fee amount, if any, that an applicant will need to pay for the consolidated application.

NOAA also made technical changes to how the fee is described in the application and similar edits to the corresponding sections for Sec. Sec. 970.208 and 971.208. Instead of requiring that the fee payment “accompany” the application, in light of the new electronic submission requirement NOAA now requires an applicant to submit the fee payment to NOAA prior to or concurrent with the submission of the application and to include in the application a description of when the fee was paid and the manner of payment. This is a technical, clarifying change.

Comment 34. Some commenters argued that the consolidated application fee is too low. One commenter stated that priority by receipt date can encourage low-effort filings on prime areas and argued that NOAA should require a modest, refundable reservation bond-- released once an applicant delivers a minimum dataset or completes an initial survey--to discourage speculative claims without penalizing serious developers. Another commenter argued that the consolidated application fee is grossly insufficient to reflect the harm that deep- sea mining activities cause to the oceans and for costs of restoration and remediation activities along with the loss of ecosystems. The commenter argued that the fee for each of the licensing and permitting phases should be separate and use a fee schedule based on the size of the geographic area to be mined, the present value of the ecosystem, the value of each impacted species, and the gross cost of restoring the area to a pre-mined state, with a minimum fee of $10,000,000 for each of the licensing and permitting phases.

Response. As stated in the Act, the “administrative fee imposed by the Administrator on any applicant shall reflect the reasonable administrative costs incurred in reviewing and processing the application.” 30 U.S.C. 1414. So, NOAA is not adjusting the fee structure to establish by rulemaking a new “reservation bond” nor impose separate fees for each application to account for restoration and remediation. Such bonds or fees are outside the limited scope of this rulemaking and the Act.

In addition, the fee structure (an initial $100,000 or $350,000, with adjustment upwards or downwards to reflect the actual administrative cost of an application), the findings NOAA must make under the Act and the regulations, and the diligence requirements under the Act and the regulations, provide sufficient authority to address speculative claims. For example, under the DSHMRA reporting requirements, license and permit holders are required to show diligent progress in the execution of their exploration and commercial recovery plans in order to maintain those licenses and permits.

Comment 35. Commenters argued that the regulations are of general applicability to all deep seabed mining which may include all sorts of geological formations, and it is not appropriate to single out one type of mining by referring to polymetallic nodules, but rather to refer to minerals, or mineral deposits. Although the DSHMRA resource definition may be read narrowly to apply only to polymetallic nodules, the commenters asserted that the President's Executive Order is much broader in scope and nothing in DSHMRA would appear to limit NOAA's authority to address this broader scope. Commenters suggested elimination of language which would suggest that licenses and permits cannot address the full range of minerals in application areas.

Response. The Act and the DSHMRA regulations define “hard mineral resources” as “any deposit or accretion on, or just below, the surface of the deep seabed of nodules which include one or more minerals, at least one of which contains manganese, nickel, cobalt, or copper.” 30 U.S.C. 1403(6); 15 CFR 970.101(j); 15 CFR 971.101(k). Therefore, for purposes of the Act, the regulations, and this final rule, the term “hard mineral resources” refers to polymetallic nodules. As such, and because “nodules” is used elsewhere in the DSHMRA regulations, NOAA has not made changes to the use of “nodules” in the regulatory text. A broader interpretation of hard mineral resources could suggest that DSHMRA covers sulphides and crusts, which it does not. As this definition is in the Act, NOAA cannot by regulation change the definition.

Comment 36. A commenter argued that many sections provide redundant information and stated that it is important to determine an overall structure and then allocate the information to these sections.

Response. In creating the new Sec. 971.214 consolidated license and permit process, NOAA has mirrored some corollary sections within 15 CFR parts 970 and 971 in Sec. 971.214. NOAA has taken this approach for greater clarity and specificity as to the requirements of the consolidated application process and to ensure that, where applicable, there are consistent application requirements between applicants using the consolidated application process and those opting to pursue sequential licenses and permits.

Comment 37. A commenter stated that it is important to the Applicant to understand what is required, early on in the document such as the: Application Form, Statement of Financial Resources, Exploration Plan, Commercial Recovery Plan, Environmental Impact Statement, Economic Feasibility Analysis, Technical Feasibility Study, Legal Feasibility Study, Monitoring Plan, Hearings (Processing Outside the US), and Schedule of Commercial Recovery.

Response. The current regulatory structure in 15 CFR part 970 and part 971, and now also in Sec. 971.214, contain information on the sections needed for an application.

Comment 38. A commenter argued that in Sec. 971.214(b), the word “separate” creates confusion and requested that NOAA replace it with an “Exploration License and a Commercial Recovery Permit.”

Response. For clarity, NOAA has replaced the first instance of “separate” with “an exploration license and a

commercial recovery permit.” This is a clarifying change that does not alter the meaning of this section.

Comment 39. A commenter stated that, given that public hearings have not yet been mentioned, Sec. 971.214(b) should be reserved for a section on hearings.

Response. Regulations regarding public hearings can be found in the existing regulations and are also included in the new Sec. 971.214. See also Sec. Sec. 970.212, 971.212.

Comment 40. A commenter argued that in Sec. 971.214(b) the word “may” is confusing as it allows the possibility that NOAA will not prepare the EIS and requested that NOAA reserve a section especially for this part of the process.

Response. NOAA's intent for this section is to explain that NOAA may prepare a single EIS rather than one EIS for the exploration license and another EIS for the commercial recovery permit. To clarify this intent, NOAA has deleted “also” from the sentence and added at the end of the sentence the clause “rather than one environmental impact statement for the exploration license and another environmental impact statement for the commercial recovery permit.” This is a clarifying edit that does not alter the consolidated application process.

Comment 41. A commenter stated that in the last sentence of Sec. 971.214(b), the word “proposal” indicates that there is a process that needs to be explained in its own section.

Response. NOAA has added some clarifying text in response to this comment. Under the Act, NOAA will publish “proposals to issue or transfer licenses and permits” in the Federal Register. 30 U.S.C. 1426(a)(1). The language in the proposed rule for Sec. 971.214(b) refers to proposals to issue licenses under Sec. Sec. 970.500(a) and 970.401. NOAA has added text to clarify this point; this text is consistent with the proposed rule and does not change the process or requirements.

Comment 42. A commenter stated that in Sec. 971.214(c), the first sentence is confusing and should say “the information required in each of the following sub-sections of paragraph (d), in the order they appear.”

Response. NOAA agrees and has referenced paragraph (d) as suggested. This is a clarifying change. NOAA has also added a clarifying sentence to paragraph (c) stating: “For applications received electronically after the close of business, for purposes of computing the Administrator's required response time, the application shall be deemed to be received at 8 a.m. ET on the next business day.” This change is consistent with the proposed rule language transitioning to electronic submission of applications and with existing language in the DSHMRA regulations on computation of time (15 CFR 971.805). This change pertains to the Administrator's response time computation only and does not alter substantive rights or obligations of applicants. As such, this is a clarifying change.

Comment 43. A commenter requested that NOAA delete the following from Sec. 971.214(d): “information sufficient to enable the Administrator to make the findings set forth in 30 U.S.C. 1415(a) and 15 CFR 970.500(c), 971.214(f), and 971.400(c), including the following items:”

Response. The specified sections of regulations that the commenter requested be deleted are the findings that the Administrator must make before approving or denying the issuance or transfer of a license or permit and must remain. However, NOAA has made a clarifying edit to Sec. 971.214(d) to correct an inadvertent typographical error in the proposed rule: the reference in this section to Sec. 971.214(f) has been replaced with a reference to the correct section, Sec. 971.214(e).

Comment 44. A commenter stated that Sec. 971.214(d)(1) provides the same information as paragraph (4) describing the exploration plan.

Response. Paragraph (d)(1) is distinct from paragraph (d)(4). The information required in paragraph (d)(1) is to allow NOAA to assess whether the applicant is currently qualified to use the consolidated license and permit application and seek information on any pre- application exploration work. The information required in paragraph (d)(4) is for any exploration activities the applicant proposes to undertake under the license for which it is applying via the consolidated process. However, NOAA has made clarifying changes in response to this and other comments expressing confusion about this language. The purpose of the clarified regulatory text in sections 971.214(d)(1) and e(1) is to establish the applicant's qualifications to use the consolidated license and permit application instead of requiring the applicant to first apply for, and obtain, an exploration license before seeking a commercial recovery permit. In order to qualify for the consolidated application, and in keeping with DSHMRA, an applicant to a commercial recovery permit must be able to “pursue diligently the activities described in the recovery plan.” 30 U.S.C. 1417(b), 1418(a). NOAA further modified the text of Sec. 971(d)(1) to clarify that information on exploration work (if any) performed by either the applicant or by entities affiliated with the applicant may be relevant to determining whether the applicant can demonstrate it possesses the scientific, technical, and financial resources to pursue commercial recovery activities in an expeditious and diligent manner. NOAA removed text that could imply that past exploration is required to make such a demonstration. See also response to Comment 48.

Comment 45. A commenter requested that, in Sec. 971.214(d)(1)(i), NOAA replace “This” with “Each section,” delete “the applicant's access to,” and delete “including the following items.”

Response. NOAA has not included “Each section” as Sec. 971.214(d)(1)(i) refers to the information in this paragraph only and not other sections of the regulations. However, NOAA has made a clarifying change to replace “This” with “The description of past exploration activities . . . .” NOAA has deleted “the applicant's access to.” NOAA notes that there may be instances when an applicant does not have access to all information resulting from previous exploration activities. NOAA has retained “including the following items,” as this text is needed to refer to Sec. 971.214(d)(1)(i)(A)- (F).

Comment 46. A commenter argued that Sec. 971.214(d)(1)(i)(A) should include the specific location and size of the deposit and area requested for the exploration license and recovery permit.

Response. Section 971.214(d)(1) describes past exploration activities--not the activities or location proposed under the consolidated license and permit application. Therefore, for Sec. 971.214(d)(1)(i)(A), the survey cruises are from past exploration activities that could be for the area proposed in the DSHMRA application or other areas, but which are relevant to the issue of whether the applicant will be able to proceed to commercial recovery in an expeditious and diligent manner. NOAA is not pre-determining what past exploration activities, if any, an applicant may use to meet the requirements for a consolidated license and permit. Section 971.214(d)(4) contains the information requirements for the consolidated license and permit application.

Comment 47. A commenter argued that in Sec. 971.214(d)(1)(i)(F), economic feasibility ought to be shown by an Internal Rate of Return (IRR) analysis of the first 10 years of commercial operations using likely, high and low scenarios. This should include estimates of capital costs up until date of first commercial recovery and during recovery; amount of mineral recovered, cost of extraction, refining, and

transport, other costs, amount of metal recovered going to the applicant, price of metal, and profits before taxes. The commenter also stated that this paragraph should be divided into several parts: Economic feasibility, Technical Feasibility, Legal Feasibility, and Environmental Considerations.

Response. Section 971.214(d)(1), including paragraphs (d)(1)(i)(A)- (F), pertains to past exploration activities not the activities proposed under the consolidated license and permit application. NOAA is not pre-determining what types of analysis an applicant may provide to describe work that was performed to evaluate the feasibility of commercial scale operations. NOAA does not believe that paragraph (F) should be broken out into separate paragraphs as there is no need to delineate each of the items in further detail.

Comment 48. A commenter argues that in Sec. 971.214(d)(1)(ii), the clause “and the applicant possesses the scientific, technical, and financial resources to pursue commercial recovery activities in an expeditious and diligent manner” is redundant and should be deleted.

Response. NOAA disagrees that this language is redundant. The items specified in this subparagraph inform the explanation of why the applicant qualifies to use the consolidated license and permit procedures and that the applicant can pursue commercial recovery activities in an expeditious and diligent manner. However, on review, NOAA has made a formatting change to this paragraph, and to corresponding language in Sec. Sec. 971.214(d)(1) and 971.214(e)(1), to clarify how an applicant may demonstrate that the applicant can pursue commercial recovery activities in an expeditious and diligent manner. NOAA has further clarified, with examples, the types of information that may be used by the applicant to demonstrate that it is qualified to use the consolidated application process. These examples are illustrative only, however, and are not intended to require additional information or limit the information or explanation that an applicant may provide in response to this requirement, nor do they necessarily reflect NOAA's views as to how much weight should be accorded to the types of information an applicant may provide. These are clarifying changes that do not change substantive rights or obligations.

Comment 49. A commenter argued that Sec. 971.214(d)(2) must mention that the plans referenced are requirements detailed below in paragraph 4 for the exploration plan, and in paragraph 5 for the commercial recovery plan. The commenter argued the general estimated costs should not be included here but in paragraph (d)(1)(i)(F). The commenter argued that instead of the financial statements and Form 10-K referenced in this regulation, the applicant should do an IRR analysis based on data generated by exploration and market metal prices. Regarding the description of those entities upon which the applicant will rely to finance the exploration, the commenter stated that small exploration companies will often trade future production for cash during the exploration phase and argued that it is essential that these deals are monetized before doing the IRR analysis as the applicant may have pre-sold future production.

Response. NOAA agrees in part with the suggested changes. NOAA has added a clarifying reference to the requirements in paragraphs (4) and (5) for the exploration plan and commercial recovery plan.

Paragraph (2) is the appropriate place to describe general estimated costs and not in paragraph (d)(1)(i)(F), as (d)(1) is for past exploration activities.

If available, a company's financial statements and Form 10-K are useful documents for evaluating a company's financial resources. There may be other useful documents and analyses, including an IRR, which evaluates the expected annualized rate of return an investment is expected to generate over its lifetime. NOAA has added a sentence to note that applicants may also provide other economic analyses. These technical and procedural revisions are consistent with the scope and NOAA's intent that the applicant provide information sufficient to demonstrate that it is capable of committing or raising sufficient resources for the proposed exploration and commercial recovery activities.

Comment 50. A commenter argued that Sec. 971.214(d)(3) is redundant and should be divided between exploration and recovery and put in subparagraphs (4) and (5). With respect to Sec. 971.214(d)(3), the commenter also argued that: subparagraph (3)(ii) is where the requirement for an EIS should appear; the description of environmental monitoring equipment in paragraph 3(ii) should be moved to subparagraph (d)(4); subparagraph (3)(iii)(A)-(D) should be incorporated in Sec. 971.214(d)(5); in subparagraph (3)(iii), the phrase “mining process” should be replaced with “mineral extraction” and the phrase “for persons operating its equipment” in subparagraph (3)(iii)(D) should be replaced with “during the mineral recovery stage.”

Response. Section 971.214(d)(3) requires that an applicant provide a statement of the technology, equipment, and capabilities that will be used during exploration and commercial recovery, not the actual exploration and commercial recovery plans of work contained in paragraphs (4) and (5). Paragraph (3)(ii) is a description of the environmental monitoring equipment that will be used separate from the EIS requirements referenced elsewhere in the regulations. “Mining process” is an appropriate term, and the term is used in the existing regulations. See Sec. 971.202(b)(1). Finally, paragraph (D) refers to the qualifications of personnel operating the equipment, not just regarding resource recovery.

Comment 51. A commenter argued that in Sec. 971.214(d)(4), the enforcement of TCRs needs to be defined.

Response. 15 CFR 971.214 sets forth procedures governing consolidated exploration license and commercial recovery permit applications. Paragraph (d) of this section identifies the information required for the Administrator to make necessary findings under the Act and parts 970 and 971. This information includes a description of the applicant's proposed exploration activities sufficient for, among other things, the development and enforcement of TCRs. NOAA disagrees that the enforcement of TCRs needs to be defined in this section. The Act and the DSHMRA regulations already contain various provisions describing NOAA's enforcement authorities, which may be applied to the enforcement of TCRs. See, e.g., 30 U.S.C. 1424, 1461-1468; 15 CFR part 971, subpart J.

Comment 52. A commenter argued that subparagraph 971.214(d)(4)(iii) is a repetition of sub-sections of paragraph (d)(1) and should be deleted and replaced with a reference to paragraph (d)(1).

Response. Paragraph (d)(1) refers to a description of past exploration activities. Paragraph (4) pertains to the exploration plan, which shall include the intended exploration schedule as further delineated in parts of paragraph (d)(4)(iii).

Comment 53. A commenter stated that in Sec. 971.214(d)(9)(iii), “copper, nickel, cobalt or manganese minerals or any metals refined from these minerals” is particular to polymetallic nodules mining. The commenter suggested that the regulations should apply a broader definition.

Response. These minerals are specifically mentioned in the definition of “hard mineral resource” in Section 1403(6) of DSHMRA.

Comment 54. A commenter inquired what the process is for getting the determination under Sec. 971.214(d)(11) that the “President or his designee does not determine that this restriction contravenes the overriding national interests of the United States.”

Response. Section 971.408 mirrors the requirements of the Act, which describes when and how the Administrator may authorize processing outside of the United States. See 30 U.S.C. 1412(c)(5). It is unnecessarily detailed to include in the regulations the intra- governmental process necessary to reach the determination.

Comment 55. A commenter argued that this rulemaking will delay the processing of existing applications for commercial recovery permits. The commenter stated that NOAA should apply the new amended rules retroactively and/or grandfather in existing applications so that the commercial recovery permit decision can be expedited.

Response. Paragraph 971.214(g) establishes that applicants who have pending applications for exploration licenses may notify the Administrator of their intent to proceed under the consolidated procedures. While paragraph (g) would require that the existing applicant file an amended consolidated application, it would not be a new application and would not negate work completed to date. NOAA has added to paragraph (g) a clause at the end of the last sentence that states, “except that any work, actions or decisions by NOAA, including required findings at various stages of the application process, shall continue to apply to the extent still applicable.” NOAA has added further explanation to the preamble. This regulation will not impact the processing of any pending applications for commercial recovery for any applicant that already holds an existing exploration license.

Comment 56. A commenter argued that Sec. 971.214(d)(7)(ii), regarding foreign flag vessels, disregards the April 9, 2025, E.O. 14269, “Restoring America's Maritime Dominance.” The commenter requested that the regulations be revised to allow only the use of United States-built and flagged vessels.

Response. Section 971.214(d)(7) does not change the statutory and regulatory requirements for U.S. Flag and foreign flag vessels; rather, paragraph (d)(7) is describing the U.S. Coast Guard and other safety information and certifications required for all vessels used in exploration or commercial recovery. The regulatory provisions for when U.S. Flag vessels must be used remain unchanged and these provisions are based on the Act's requirements that commercial recovery vessels be U.S. Flag vessels and that at least one commercial recovery transportation vessel be a U.S. Flag vessel. See 30 U.S.C. 1412(c)(2) and (3). The regulations contemplate the very limited number of vessels that could undertake deep seabed mining exploration and commercial recovery, and revising the requirements for U.S. Flag and foreign flag vessels are beyond the scope of this regulatory action.

Comment 57. For Sec. 971.214(b) (Who may apply; how), a commenter supported the proposed consolidation of public hearings and other proceedings related to the issuance or transfer of an exploration license and a commercial recovery permit in a consolidated application process and asserted that this approach would promote efficiency and reduce duplication of hearings while maintaining transparency. The commenter also supported the proposal to allow NOAA to prepare a single EIS covering both exploration and commercial recovery activities.

Response. NOAA appreciates the supportive comment.

Comment 58. For Sec. 971.214(d)(1) Past exploration description and affirmation, a commenter supported the proposed provision to allow a consolidated exploration license and commercial recovery permit applicant to refer to the exploration activities of “other entities” outside of the work of the applicant or the proposed transferor to demonstrate that the applicant will be able to proceed to commercial recovery with limited or no additional exploration.

Response. NOAA appreciates the supportive comment.

Comment 59. For Sec. 971.214(d)(1)(i)(F) Past exploration description and affirmation, a commenter requested that NOAA remove the term “continued” in “Evaluating the continued feasibility of commercial scale operations . . . .” The commenter asserted that the feasibility of commercial operations should be assessed based on current and projected conditions at the time of the consolidated application. A second commenter requested that NOAA retain the term “continued” in this provision and recommended that NOAA conduct a rigorous review of applications with respect to this criterion, including requiring that financial projections be prepared by independent consultants. The second commenter also argued that NOAA should conduct a legal feasibility review for DSHMRA applicants and their foreign partners, especially those foreign partners who are signatories to the LOSC. A third commenter argued that NOAA should consider whether it could approve an application if the U.S.-based company would rely on foreign processing, and NOAA would have no authority or NEPA review over that foreign source.

Response. Paragraph (d)(1)(i)(F) of Sec. 971.214 directs that an applicant who is using the consolidated license and permit application process shall provide a description of past exploration activities that includes an evaluation of the feasibility of commercial scale operations, and lessons learned from past exploration activities for the continued feasibility of commercial recovery activities are relevant to NOAA's evaluation of a consolidated license or permit application. Moreover, Sec. 971.214(d)(1)(i)(F) mirrors the existing language of Sec. 970.203(b)(3)(vi).

Regarding NOAA's evaluation of the feasibility of commercial recovery activities based on an applicant's past exploration and commercial recovery activities, NOAA understands that there is inherent risk in deep seabed mining and that past successes and failures can inform an applicant's decision to proceed with new deep seabed mining proposals and NOAA's review of a DSHMRA application. NOAA acknowledges, however, that as of the date of application commercial recovery may not have occurred; the use of the word “continued” is not meant to imply (or require) that the applicant, any affiliate of the applicant, or any other entity has already become engaged in commercial recovery prior to the submission of a consolidated application.

As to processing, NOAA will determine whether to authorize proposals to use foreign sources for processing recovered hard mineral resources pursuant to Sec. Sec. 971.209 and 971.408, which allow for foreign processing under certain circumstances.

Applicants must adhere to the provisions of the Act and the regulations. As such, regarding NOAA's review of the legal feasibility not only for a DSHMRA applicant, but also for its foreign partners, to the extent an applicant is relying on financial or other support from domestic or foreign partners, NOAA evaluates those arrangements as part of its DSHMRA application review.

Comment 60. For Sec. 971.214(d)(1)(ii) Past exploration description and affirmation, a commenter supports the proposed text at Sec. 971.214, paragraph (d)(1)(ii).

Response. NOAA appreciates the supportive comment.

Comment 61. For Sec. 971.214(d)(2) Statement of financial resources, a commenter supported the proposed text

at Sec. 971.214, paragraph (d)(2) which would allow applicants to include information in their consolidated application that demonstrates their capability to commit “or raise” sufficient financial resources to cover the estimated costs of their proposed exploration and commercial recovery programs.

Response. NOAA appreciates the supportive comment.

Comment 62. For Sec. 971.214(d)(3) Statement of technological experience and capabilities, a commenter requested that NOAA make the following change (in strikeout/underlined text) to Sec. 971.214, paragraph (d)(3): [GRAPHIC] [TIFF OMITTED] TR21JA26.004

The commenter considered that the above amendment was necessary because an applicant may not always directly possess or own the technological capability to carry out the proposed exploration and commercial recovery activities; rather, the applicant may partner with or subcontract to other entities that own or possess the technological capability to execute the proposed activities on behalf of the applicant.

Response. NOAA agrees with this comment and has made the change to the text in Sec. 971.214(d)(3). Paragraph (d)(3) does not require that an applicant have possession of the technology required at the time an application is filed or NOAA issues its approval. Rather, an applicant needs to show what technology is needed and demonstrate that it will have access to such technology (which may be, for example, through agreements, partnerships, or contracts). This is a clarifying comment that is consistent with the initial DSHMRA regulations as well as Sec. 971.214(e)(4)(ii).

Comment 63. For Sec. 971.214(d)(3)(ii) Statement of technological experience and capabilities, a commenter noted that there may be cases where a consolidated license and commercial recovery permit application may include an exploration plan that covers only exploration activities that fall within the scope of Sec. 970.701(a)(1-10) (listing activities have no potential for significant environmental impact and will require no further environmental assessment). The commenter requested that NOAA revise Sec. 971.214(d)(3)(ii) as follows (proposed change in strikeout/underlined text): [GRAPHIC] [TIFF OMITTED] TR21JA26.005

Response. In reviewing a consolidated application, NOAA needs the full suite of information available so that it can assess in the first instance the scope of the proposed exploration activities, potential for significant environmental impacts, and any applicable monitoring equipment. Relatedly, and as relevant to Sec. 971.214(d)(3)(ii), it is critical that the applicant provide a description of the environmental monitoring equipment so that NOAA may assess the applicant's technological experience and capabilities.

Comment 64. For Sec. 971.214(d)(4)(iii) Exploration plan, a commenter requested that NOAA adopt the existing text at Sec. 970.203(b)(3) for Sec. 971.214(d)(4)(iii):

“The intended exploration schedule which must be responsive to the diligence requirements in Sec. 970.602. Taking into account that different applicants may have different concepts and chronologies with respect to the types of activities described, the schedule should include an approximate projection for the exploration activities planned. Although the details in each schedule may vary to reflect the applicant's particular approach, it should address in some respect approximately when each of the following types of activities is projected to occur.”

Response. NOAA has modified the proposed text in Sec. 971.214(d)(4)(iii) but these changes have not changed the meaning of Sec. 970.203(b)(3). The text in Sec. 971.214(d)(4)(iii) that states 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” is a clearer statement and still provides flexibility for the applicants regarding “intended” schedules. However, in order to better mirror the language of Sec. Sec. 970.203(b)(6) and 971.201(b), NOAA has added additional language to Sec. 971.214(d)(2) to make clear that the applicants are still expected to provide a schedule of expenditures and that the schedule of expenditures must be responsive to both the exploration plan and the commercial recovery plan. This is a technical and clarifying change in response to public comment that is consistent with the proposed rule.

Comment 65. For Sec. 971.214(d)(4)(iii)(C) and (D)

Exploration plan, a commenter requested that NOAA revise Sec. 971.214(d)(4)(iii)(C) and (D) as follows (proposed text underlined): [GRAPHIC] [TIFF OMITTED] TR21JA26.006

The commenter argued that the deep-sea mining industry has significantly advanced since DSHMRA came into force, and some technology (such as those related to onshore and at sea mining systems) has already been designed and tested.

Response. NOAA agrees with the comment that designing and testing these components and systems may not be needed for all applicants or technologies that have already been sufficiently designed and tested and has added clarifying language “or an explanation as to why this is not necessary” to Sec. 971.214(d)(4)(iii)(C) and (D). This is a technical and clarifying change in response to public comment that is consistent with the proposed rule. [GRAPHIC] [TIFF OMITTED] TR21JA26.007

Response. In reviewing a consolidated application, NOAA needs the full suite of information available so that it can assess in the first instance the scope of the proposed exploration activities, potential for significant environmental impacts, and any applicable monitoring equipment. However, NOAA has made a revision to correct an inadvertent typographical error in this section of the proposed rule: the reference to “subpart G of this part” has been replaced with “subpart G of part 970.”

Comment 67. For Sec. 971.214(d)(5)(iii) Commercial recovery plan, a commenter requested that NOAA revise Sec. 971.214(d)(5)(iii) as follows (underlined text): [GRAPHIC] [TIFF OMITTED] TR21JA26.008

The commenter asserted that it is standard practice for environmental monitoring and management plans to be refined following the completion of preliminary assessments.

Response. NOAA agrees with the comment, has made this change with a modification to ensure consistency in referring to environmental impact statements throughout these regulations, and notes that it is the inherent nature of the Act, regulations, monitoring plan, and monitoring plan TCRs that the plan may be refined and evolve over time based on any EISs and subsequent deep-sea mining activities. See, e.g., 30 U.S.C. 1424(3), 15 CFR 971.603(g). As such, this is a technical change, consistent with the Act and regulations, to provide clarification in response to public comment. NOAA made a further technical change to the text of Sec. 971.214(d)(5)(v), clarifying that the resource assessment is required to address the requirements of Sec. 971.501 only to the extent practicable and that the resource assessment may be preliminary at the time of the application. The requirements of Sec. 971.501 were structured for applicants using a sequential application process, but these requirements may not make full sense in the case of some applicants using the consolidated process. The additional language is intended to clarify that the resource assessment may be more preliminary for some applicants using the consolidated application process. This is a clarifying change that does not change the substance of the regulation.

Comment 68. For Sec. 971.214(d)(6)(ii) Environmental and use conflict analysis, a commenter requested that NOAA revise Sec. 971.214(d)(6)(ii) as follows (underlined text): [GRAPHIC] [TIFF OMITTED] TR21JA26.009

Response. NOAA agrees with the comment, has made this change, and notes that it is the inherent nature of the Act, regulations, monitoring plan, and monitoring plan TCRs that the plan may be refined and evolve over time based on any EISs and subsequent deep-sea mining activities. See, e.g., 16 U.S.C. 1424(3), 15 CFR 971.603(g). As such, this is a technical change, consistent with the Act and regulations, to provide clarification in response to public comment. NOAA has also made conforming and clarifying edits throughout Sec. 971.214(d)(6) to consistently refer to any EISs that may be prepared on the proposed activities in the consolidated license and permit application.

Comment 69. For 15 CFR 971.214(d)(8)(ii)(D) Statement of Ownership, a commenter requested that NOAA revise Sec. 971.214(d)(8)(ii)(D) as follows (strikeout text):

“Sufficient information to demonstrate that the applicant is a U.S. citizen, including:

[. . .]

[GRAPHIC] [TIFF OMITTED] TR21JA26.010

The commenter expressed concern as to a certification requirement, including the mechanism by which certification would operate and who would be responsible to certify.

Response. NOAA agrees in part with the comment and has changed Sec. 971.214(d)(8)(ii)(D) to require “copies” and not “certification” of all essential and nonproprietary information. This edit is consistent with Sec. 971.206(b)(2)(iv) and Sec. 970.206(b)(4), which is asking for copies of certificates of incorporation and copies of essential and nonproprietary information and not certification of the information. Therefore, NOAA has retained paragraph (D) and replaced “certification” with “copies.” NOAA has also made a revision to Sec. Sec. 971.214(d)(8)(i) and (ii) to correct an inadvertent omission in the proposed rule, by adding “and commercial recovery” after “exploration.” Finally, in Sec. 971.214(d)(9)(i) and (ii), NOAA has corrected an inadvertent omission in the proposed rule by adding references to commercial recovery permits. These are technical changes to clarify the scope of the rule, and they are consistent with the purpose of the proposed rule and NOAA's intent in promulgating this section.

Comment 70. For 15 CFR 971.214(e) Certification, a commenter supported the proposed language of Sec. 971.214(e), regarding certification of applications which are in full compliance.

Response. NOAA appreciates the supportive comment and has made a technical and clarifying edit to Sec. 971.214(e)(1) to correct an inadvertent omission in the proposed rule. NOAA has added “and 971.211” after the reference to Sec. 970.211, to reference the corresponding provisions regarding

consultation in both part 970 and part 971.

Comment 71. For Sec. 971.214(e)(2) Certification, a commenter requested that NOAA revise Sec. 971.214(e)(2) as follows (underline text): [GRAPHIC] [TIFF OMITTED] TR21JA26.011

The commenter proposed that the regulation also explicitly reference Sec. 971.103(b) to ensure comprehensive coverage of restrictions applicable to commercial recovery permits, not just exploration licenses.

Response. NOAA agrees with the comment that Sec. 971.214(e)(2) applies to both licenses and permits and has added the reference to Sec. 971.103(b). This is a technical clarification to the text of the proposed rule to correct an inadvertent omission. NOAA has also made a clarifying change to Sec. 971.214(e)(3) to address an inadvertent omission in the proposed rule; the clarification, which is consistent with NOAA's intent for, and scope of, the proposed rule, aligns the language of Sec. 971.214(e)(3) with the statutory language in 30 U.S.C. 1413(a)(2)(D) regarding approval of the size and location of an area selected by an applicant.

Comment 72. For Sec. 971.214(e)(5) Certification, a commenter requested that NOAA revise Sec. 971.214(e)(5) as follows (strikeout text): [GRAPHIC] [TIFF OMITTED] TR21JA26.012

The commenter asserted that this provision was redundant of Sec. 971.214(e)(2).

Response. NOAA agrees with the comment and has removed paragraph (e)(5).

Comment 73. For Sec. 971.214(f)(C) Denial of Certification, a commenter requested that NOAA revise Sec. 971.214(f)(1)(ii)(C) as follows (strikeout text): [GRAPHIC] [TIFF OMITTED] TR21JA26.013

Response. The term “endeavor” is from the Act when referring to the 100-day deadline to certify an application. See 30 U.S.C. 1413(g). This term is then mirrored in the regulations. For Sec. 971.214(f)(1)(ii)(C), rather than endeavoring to complete a review in 100 days, 50 days is a reasonable period to endeavor to complete review of the amended application, given NOAA's experience to date in processing DSHMRA exploration applications.

Comment 74. For Sec. 971.214(g) Effect of this section on pending applications, a commenter requested that NOAA revise Sec. 971.214(g) as follows (underline text):

[GRAPHIC] [TIFF OMITTED] TR21JA26.014

Response. NOAA agrees with the comment in principle and addresses the comment above in the preamble explanation for paragraph (g). NOAA added a clause to the end of the paragraph that states that “except that any work, actions or decisions by NOAA, including required findings at various stages of the application process, shall continue to apply to the extent still applicable.” This change is a technical and procedural clarification that reflects NOAA's original intent in proposing Sec. 971.214(g) and that is consistent with the purpose and scope of the proposed rule. It does not establish or alter substantive rights.

Comment 75. One commenter urged NOAA to modify the DSHMRA regulations, including proposed 15 CFR 971.214(d)(6)(iii), to alert applicants to the need to coordinate with submarine cable companies and regulators in the proposed consolidated license and permit area and to require due diligence and specific identification of existing and planned submarine cables. More generally, the commenter urged NOAA to develop comprehensive cable protection regulations and guidance for deep seabed mining that ensures submarine cable protection and coordination between submarine cables and mining at the earliest stages of mining project proposals and planning. The commenter also urged NOAA to consult and coordinate with those agencies with licensing and policy responsibilities for submarine cables and telecommunications sector critical infrastructure, including the Federal Communications Commission, the Department of Commerce's National Telecommunications and Information Administration, the Department of Homeland Security, and the Department of State.

Response. NOAA is aware of the potential for use conflicts between deep seabed mining and submarine cables. However, the changes proposed by the commenter to establish comprehensive cable regulations and guidance for deep seabed mining are outside the scope of the present rulemaking and NOAA did not propose, or request public comment on, these issues, including the suggested guidance and further regulations related to submarine cables. Moreover, it is unnecessary to revise Sec. 971.214(d)(6)(iii) as proposed by the commenter, as that provision is broad enough as written for applicants and NOAA to address submarine cables, including TCRs specific to submarine cables. NOAA declines to include a requirement for applicants to conduct additional due diligence steps regarding use conflicts and notes that under the regulations, the Administrator may require the applicant to submit additional data if the basis for determining appropriate TCRs is not available. In the future, NOAA could choose to consider revising the regulations to expressly address submarine cables via a separate action. Under the Act and the DSHMRA regulations there are substantial opportunities for both interagency consultation during the application review process, including with the Federal Trade Commission, Coast Guard, State Department, other Department of Commerce offices, and other federal agencies including the Federal Communications Commission if appropriate, and accepting comments from the public, including the opportunity for private companies and trade groups to give advice on specific TCRs to be attached to a given license or permit. See 30 U.S.C. 1426.

Comment 76. One commenter requested clarification that, under the proposed consolidated procedures, both the timeline for review set forth in current Sec. 971.400 and the consultations required under Sec. 971.402 would occur concurrently with the Administrator's review of a consolidated application. The commenter supported NOAA's 100-day timeline to certify consolidated applications (as referenced in new Sec. 971.214(e)) and requested clarification that this timeline encompasses the full review, consultation, and issuance or transfer process, thereby avoiding sequential delays.

Response. NOAA begins its interagency consultations early in the application review process under Sec. Sec. 970.211 and 971.211, before certification of such application under Sec. 971.214(e). However, interagency consultations will continue, as necessary and appropriate, throughout the application process even after certification has been completed. Section 971.402 simply describes the need to conclude these ongoing interagency consultations prior to the issuance or transfer of a commercial recovery permit; Sec. 971.402 does not create a new, separate time period during the application process. The timeline for the development of TCRs for commercial recovery permits falls under Sec. 971.400(b). The 100-day timeline is the period during which NOAA will endeavor to certify the consolidated application, but the issuance or transfer of the application would occur after the 100-day period.

Comment 77. A commenter recommended that NOAA explicitly include the imposition and content of TCRs for new, transferred, or modified licenses or permits under the provisions of Sec. 971.214(e).

Response. As noted in Sec. 971.214(a), all requirements set forth in 15 CFR parts 970 and 971, except those sections that Sec. 971.214(a) states are inapplicable or those sections that are in conflict with the requirements of Sec. 971.214, continue to apply. Section 971.214(e) applies to the certification stage of an

application; TCRs are drafted and finalized after certification and before issuance. The provisions governing TCRs for licenses or permits that were applied for under the consolidated process would continue to be 15 CFR part 970 subpart E and part 971 subpart D. However, one of the changes to the proposed rule text that NOAA has made regarding Sec. 971.214 addresses this comment by modifying Sec. Sec. 970.500(a) and 971.400(a) to say, “After certification of an application pursuant to subpart C of this part or Sec. 971.214, the Administrator will proceed with a proposal to issue or transfer a permit for the commercial recovery activities described in the application.” For the consolidated license and permit application process, certification occurs under Sec. 971.214(e) and not subpart C. By making a conforming change to reference Sec. 971.214 in Sec. Sec. 970.500(a) and 971.400(a), the connection to the TCR process is made explicit. These are conforming and clarifying edits that are consistent with the proposed rule and that do not alter any substantive rights.

Comment 78. Commenters supported an efficient and scientifically grounded approach to data submissions under Sec. 971.214(d)(1) and suggested that NOAA allow the use of environmental, geological, and operational data required by this section from an adjacent, similarly situated area with the same, or substantially similar, deep-sea characteristics, such as habitat and fauna, as the area that is the subject of an application for a license or permit.

Response. Section 971.214(d)(1) describes past exploration activities that could be in the area proposed in the DSHMRA application or other areas and that are relevant to whether exploration activities are needed for the consolidated license and permit application. NOAA is not pre-determining what past exploration activities an applicant may include in its applications for a consolidated license and permit and the applicant can describe past exploration activities in the proposed area or adjacent or other similar areas as part of its explanation for Sec. 971.214(d)(1)(ii), to the extent the applicant can explain the relevancy of the information.

Comment 79. A commenter requested clarification that under the proposed Sec. 971.214(d)(1)(ii), an applicant may alternatively satisfy the informational requirement by filing a detailed plan with NOAA prior to the commencement of commercial recovery operations.

Response. Section 971.214(d)(1) describes past exploration activities, and an applicant must provide in its consolidated license and permit application the explanation required under Sec. 971.214(d)(1)(ii) so that NOAA can determine if the applicant is eligible to use the consolidated application based on whether the applicant can pursue commercial recovery activities in an expeditious and diligent manner.

Comment 80. A commenter recommended that NOAA clarify that the description of technology, equipment, methods, processing locations, and other related operational data provided under Sec. Sec. 971.214(d)(3)(iii), (d)(5), and (d)(6), as applicable, may be based upon either the currently available techniques, knowledge and know-how, or the applicant's current expectations at the time of submission. The commenter argued that this flexibility would reflect the current capabilities of offshore mineral operations and processing operations while still affording the NOAA sufficient information to execute informed decisions.

Response. The current regulations and Sec. 971.214 do not limit or pre-determine how an applicant can describe how it will address technology, equipment, methods, processing locations, and other related operational data.

Comment 81. A commenter argued that although DSHMRA provides for antitrust review, it does not mandate detailed information requirements such as those proposed in the Proposed Rule (Sec. 971.214(d)(9)). The commenter asserted they are counterproductive and should be eliminated.

Response. The Act requires that NOAA conduct an antitrust review, 30 U.S.C. 1413(d), and eliminating the information requirements in the new Sec. 971.214(d)(9) would require changing the antitrust provisions in 15 CFR parts 970 and 971 for individual license or permit applications, which NOAA considers to be beyond the scope of this rulemaking. Moreover, the information collected pursuant to these regulatory provisions is important for compliance with the statutory requirement. However, NOAA has made some minor clarifying edits in Sec. 971.214(d)(9), including clarifying that “affiliate” has the same definition as in Sec. 970.101(d).

Comment 82. A commenter argued that the consolidated approach removes a critical separation of two processes, which introduces problems and issues that limit the ability of the agency to ensure effective protection of the marine environment. The commenter stated that the proposed rule language “exploration, if any . . .” is vague and, as written, could imply that exploration is not necessary before commercial recovery. The commenter argued that baseline characterization of the seabed mineral resource, the physical and geochemical environment, and associated biological communities, all of which should occur during the exploration phase, is fundamental to an accurate environmental impact statement of the activity and the design of test mining and effective monitoring of impacts, which also occurs during the exploration phase. The commenter requested adding a formal requirement for a test mining phase after exploration and before commercial recovery.

Response. The consolidated license and permit application does not remove the need for the collection or provision of baseline data; rather, as explained in this preamble, the consolidated license and permit application process recognizes the advancements that have taken place in the deep seabed mining industry and exploration activities that industry has completed. As such, eligible applicants for the consolidated license and permit application process will need to explain why they can undertake commercial recovery activities in an expeditious and diligent manner. As noted herein, NOAA is not pre- determining what an applicant may use in its consolidated license and permit application to meet the requirements, and the applicant can describe past exploration activities in the proposed area or adjacent or other similar areas as part of its explanation for Sec. 971.214(d)(1)(ii), new technologies that would allow for the quick generation of the necessary information, and/or access to necessary baseline data from another source, among other options. As for requiring a formal test mining phase after exploration and before commercial recovery, that requirement would be beyond the scope of this rulemaking. An applicant for an exploration license describes in its application the test mining that would be conducted as part of its proposed exploration activities, if any. However, depending on the information that an applicant provides in its initial license application, an applicant intending to conduct test mining at a later date may need to seek a revision to its license before conducting test mining and NOAA may need to supplement its NEPA evaluation.

Comment 83. A commenter requested that NOAA require explicit communication of uncertainty in the information provided to prepare the EIS and in quantification of the direct impact and potential longer- term effect of activities. Characterizing uncertainty could take the form of providing a range of outcomes for pollutants discharged or information on data quality and underlying assumptions used in

determining expected quantities of material recovered, duration and extent of disruption to marine ecosystems, etc. The commenter argued that characterizing uncertainty as precisely as possible is important to reduce risk as the industry progresses. To advance the acceptance of this industry, the commenter requested that NOAA focus on developing best practices and operational guidance rather than streamlining the permitting process.

Response. NOAA is not developing guidance on uncertainties in the industry, best practices, or operational guidance. However, NOAA is updating its DSHMRA technical guidance in a process that is separate from this rulemaking. Updating the technical guidance is critical for having data acquisition standards for monitoring potential impacts. NOAA expects to release a draft of the revised technical guidance for public review later this year. As NOAA gains experience with new DSHMRA applications, NOAA may provide additional guidance regarding thresholds for net financial resources or technological capabilities.

The 15 CFR part 970 and part 971 regulations include relevant provisions regarding the evaluation of environmental impacts, as well as best available technologies for the protection of safety, health, and the environment (Sec. 971.604). Regarding possible uncertainties in the industry, the regulations require that applicants using the consolidated license and permit application process must demonstrate that they possess the ability to proceed with commercial recovery in an expedited and diligent manner. Regarding the possibility of uncertainties in longer-term impacts of a proposed deep-sea mining activity, NOAA notes that it retains discretion, in evaluating the impacts of any particular proposal, to “draw what it reasonably concludes is a manageable line--one that encompasses the effects of the project at hand, but not the effects of projects separate in time or place.” Seven County Infrastructure v. Eagle County, Colorado, 605 U.S. 168, 189 (2025) (citations omitted).

Sec. 971.802 Public Disclosure of Documents Received by NOAA

NOAA revises Sec. 971.802 to remove outdated procedures and cross- references for handling records and instead replaces the section with a cross-reference to the current regulations which govern public disclosure of documents received by NOAA. The changes 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). When an applicant requests that parts or all of an application be kept confidential, e.g., under Sec. 971.214(c), the applicant should understand that NOAA must provide for public review of applications and that NOAA expects to release substantial portions of an application for this review.

Comment 84. A commenter argued that the open-ended requirement to submit proprietary technology details may chill R&D investment or spur excessive redactions. The commenter requested that NOAA clarify the confidential business information process under 15 CFR part 4 by specifying how to mark sensitive material, how it will be stored and redacted, and guaranteed review timelines.

Response. The Act requires that NOAA find that an applicant has the technological capability to carry out the activities described in an application. See 30 U.S.C. 1413(c)(2). This process will include NOAA's evaluation of proprietary technological details. Regarding the treatment of proprietary information by NOAA or other federal agencies, the intent of the changes to Sec. 971.802 was to replace outdated information with a single source for the Department of Commerce's treatment of documents and proprietary information, 15 CFR part 4.

Comment 85. A commenter supported the proposed amendment to 15 CFR 971.802.

Response. NOAA appreciates the supportive comment.

Comment 86. Commenters expressed concern that the proposed changes to public disclosure of documents do not make clear when and how applications are made accessible to the public. A commenter stated that it was not clear from the proposed revision to Sec. 971.802 how the public would access the applications for exploration and commercial recovery submitted to NOAA, in particular when and how the information would be made available. The commenter argued that members of the public have a legal right to review and comment on all aspects of DSHMRA applications, and it is incumbent on applicants to demonstrate that any information in an application warrants designation as confidential. The commenter further argued that the application as a whole cannot be shielded from public access as that would violate NOAA's legal obligations to provide opportunities for public review and comment. The commenter argued that interested persons should not have to make a formal FOIA request to obtain relevant application materials that have been submitted; it is NOAA's obligation pursuant to 15 CFR 970.212 and 971.212 to allow for examination of such materials in order for the public to be able to comment within the allotted time period.

Response. The original public disclosure text in Sec. 971.802 was outdated and no longer reflected present public disclosure requirements for federal agencies. Regarding public review and comment of formal DSHMRA applications that applicants have submitted to NOAA, NOAA will provide public review and opportunities to comment on those parts of applications that are not confidential in accordance with the applicable provisions of DSHMRA and 15 CFR parts 4, 970, and 971. NOAA publishes notices of DSHMRA applications and opportunities to comment in the Federal Register after NOAA finds an application in full compliance or fully complete.

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 changes to the DSHMRA regulations will facilitate the submission of exploration license and commercial recovery permit applications as well as NOAA and interagency review of the applications. DSHMRA and these 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 was prepared.

Executive Order 12866: Regulatory Planning and Review

Based on the analysis in the RIA and public comment received during the

proposed rule stage, OMB has determined this final rule is a significant but not economically significant action under Executive Order 12866, “Regulatory Planning and Review,” 58 FR 51735 (Oct 4, 1993).

Executive Order 14192: Unleashing Prosperity Through Deregulation

This final rule is an E.O. 14192 deregulatory action.

Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use

This 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 these revisions will not result in a “significant adverse effect on the supply, distribution, or use of energy.”

Executive Order 14285: Unleashing America's Offshore Critical Minerals and Resources.

E.O. 14285 establishes policies to advance U.S. leadership in seabed mineral exploration and responsible commercial recovery. Section 3(a) directs the Secretary of Commerce, acting through NOAA, to expedite the process for reviewing and issuing exploration licenses and commercial recovery permits under DSHMRA, consistent with applicable law, to “ensure efficiency, predictability, and competitiveness for American companies.” This rulemaking responds to the directives of E.O. 14285 by providing an option for a consolidated application process, which will streamline and expedite the process for eligible and qualified applicants to apply for and receive an exploration license and commercial recovery permit.

Executive Order 14294 Fighting Overcriminalization in Federal Regulations

Section 5 of Executive Order 14294 provides, in relevant part, that notices of final rules published in the Federal Register, the violation of which may constitute criminal regulatory offenses, should include a statement identifying that the rule is a criminal regulatory offense and the authorizing statute.

The Executive Order defines a “criminal regulatory offense” as “a Federal regulation that is enforceable by a criminal penalty.” E.O. 14294 section 3(b) (90 FR 20363).

DSHMRA establishes that a person subject to the jurisdiction of the United States is guilty of a criminal offense “if such person willfully and knowingly commits any act prohibited by section 1461 of [DSHMRA].” 30 U.S.C. 1463(a). Acts prohibited under Section 1461 include “violat[ing] . . . any regulation issued under [DSHMRA].” 30 U.S.C. 1461(1). As such, for any criminal regulatory offense enforced under the authority of DSHMRA, the Act requires that the offense be committed “willfully and knowingly” to satisfy the applicable mens rea requirement.

NOAA received no public comments on the implementation of E.O. 14294.

NOAA has determined that the final rule would result in a cost savings for the affected businesses. Based on the information from this analysis we found that: (1) there are an estimated seven U.S. businesses that would be affected by this final rule; (2) for these seven businesses, we estimate that 57% (or four businesses) are considered small based on the Small Business Administration (SBA) size standards; and (3) although we estimate that seven businesses would be affected by this final rule, we recognize that the number of applicants could be even smaller since currently there are no U.S. companies engaged in deep seabed commercial recovery of hard mineral resources and there are specific technological, engineering, capital and support services required to undertake seabed mining. 1. Final Regulatory Flexibility Analysis

The RFA establishes “as a principle of regulatory issuance 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.” 2. Statement of Need for and Objectives for the Rule

Prior to this final rule, the DSHMRA regulations required a sequential process. Applicants first had to obtain an exploration license before a commercial recovery permit could 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.

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. 1413, 1426). 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 final rule is to provide the option for a consolidated application that streamlines the process for qualified applicants, in accordance with 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. 3. Summary of Substantive Issues Raised by Public Comments and Statement of Changes

As a result of the public comments and additional public data available,

NOAA has updated the FRFA estimates based on the following changes: (1) partial monetization of the applicant's benefit of 100 days saved through the consolidated permit process and (2) included a revision to the applicant's wage burden benefit calculated using PRA “OMB Control #0648-0145,” Section 12. For more information on these updates, please see Section 1.2.a. of the Final RIA. The changes did not impact the number of entities affected by the rule but resulted in an increased benefit to the small business when accounting for the 100 days cost savings. The detailed description of the cost impact to the small businesses is described in the Cost Impact Analysis of this FRFA. 4. Description of the Estimated Number of Small Businesses

NOAA used the North American Industry Classification System (NAICS) codes of the current businesses that have applied or expressed interest (prospective DSHMRA applicants). The agency identified seven businesses likely to be affected by this rule. Research and compilation of employee size and revenue data for all seven businesses was conducted. Available name and address information was used to research public and proprietary databases for business type (subsidiary or parent business), primary line of business, employee size, and revenue. The preferred source, deemed most authoritative, came directly from prospective DSHMRA applicants. Employee size and revenue data for all seven businesses was collected and analyzed. Using names and addresses, public and proprietary databases were consulted to determine business type (subsidiary or parent), primary line of business, employee count, and revenue. The most authoritative information was obtained directly from prospective DSHMRA applicants. In cases where the prospective DSHMRA applicant did not provide this information, the secondary preferred source came from Dun & Bradstreet, which provides a comprehensive database of business records for over 600 million organizations internationally. This information was matched 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, four out of seven businesses were classified as potentially impacted by this final rule as small businesses.\4\ In addition to these directly impacted small businesses, businesses in several other industries may be indirectly impacted and are included in Table 1.

\4\ Out of the seven businesses analyzed one business was determined not a small business and two businesses could not be assessed due to a lack of employment information.

Table 1--NAICS Categories for Small Businesses

Number of

Number of small Small business Estimated small

NAICS code Description businesses by share of revenue per SBA standard ** businesses

industry * industry * (%) small business affected by

* the rule ***

212290................. All Other Metal Ore Mining 30 88 $40.5 M 1,250 Employees.................. 4 213114................. Support Activities for 158 90 2.3 M $41.0 M.......................... ..............

Metal Mining. 213115................. Support Activities for 175 90 2.7 M 20.5 M........................... ..............

Nonmetallic Minerals

(except Fuels) Mining. 523110................. Investment Banking and 1,861 91 2.6 M 47.0 M........................... ..............

Securities Intermediation. 541620................. Environmental Consulting 8,119 97 1.2 M 19.0 M........................... ..............

Services. 541690................. Other Scientific and 25,810 98 0.8 M 19.0 M........................... ..............

Technical Consulting

Services.

* Source: U.S. Census Bureau Statistics of US 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.

As noted in the Final RIA, 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 attend only one adjudicatory hearing in the event certification is denied, rather than two. The applying business would also see a savings of 100 days through only one review process rather than two.

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 of 5,099 from transitioning from paper to digital application,\5\ 43,125 from submitting only one application package, 26,358 from reducing the number of adjudicatory hearings for any denial of certification from two to one, and 2,411,192 from time savings of 100 days to start the recovery process. For a business electing the sequential process of exploratory licenses and commercial recovery permit applications, the benefits of transitioning from paper to digital application submissions would be 5,002.\6\ Other benefits from the standardization of the exploratory and commercial recovery applications were not quantified.

\5\ This includes the net benefits resulting from transitioning from paper to digital for the exploration and recovery applications (2,856-97 = 2,759 and 2,533-97 = 2,436) less the cost of digital submission for the consolidated application (97).

\6\ This includes the net benefits resulting from transitioning from paper to digital for the exploration and recovery applications (2,856-97 = 2,759 and 2,533-97 = 2,436) less the cost of two digital submissions (194).

The net benefits associated with these cost savings over the 10- year period between 2026-2035 are presented in Table 2. The total net benefits (USD) of the final rule is 23,523,304 undiscounted, 20,065,855 discounted at three percent, and 16,521,784 discounted at seven percent.

Table 2--FRFA Estimates of Costs and Benefits to Applicant Businesses Over Ten Years

[2026 USD]

Costs (New costs) Benefits (Cost savings) Net benefit

Year 3%

Undiscounted Discount 7% Discount Undiscounted 3% Discount 7% Discount Undiscounted 3% Discount 7% Discount

2026.............................................................. $150,872 $146,478 $141,002 $2,503,202 $2,430,294 $2,339,441 $2,352,330 $2,283,816 $2,198,440 2027.............................................................. 150,872 142,211 131,777 2,503,202 2,359,508 2,186,394 2,352,330 2,217,297 2,054,616 2028.............................................................. 150,872 138,069 123,156 2,503,202 2,290,785 2,043,359 2,352,330 2,152,716 1,920,202 2029.............................................................. 150,872 134,048 115,099 2,503,202 2,224,063 1,909,681 2,352,330 2,090,015 1,794,582 2030.............................................................. 150,872 130,143 107,570 2,503,202 2,159,284 1,784,749 2,352,330 2,029,141 1,677,179 2031.............................................................. 150,872 126,353 100,532 2,503,202 2,096,393 1,667,989 2,352,330 1,970,040 1,567,457 2032.............................................................. 150,872 122,673 93,955 2,503,202 2,035,333 1,558,869 2,352,330 1,912,660 1,464,913 2033.............................................................. 150,872 119,100 87,809 2,503,202 1,976,051 1,456,887 2,352,330 1,856,951 1,369,078 2034.............................................................. 150,872 115,631 82,064 2,503,202 1,918,496 1,361,576 2,352,330 1,802,865 1,279,512 2035.............................................................. 150,872 112,263 76,696 2,503,202 1,862,618 1,272,501 2,352,330 1,750,355 1,195,805

Total......................................................... 1,508,719 1,286,968 1,059,661 25,032,023 21,352,824 17,581,446 23,523,304 20,065,855 16,521,784

Annualized.................................................... 150,872 150,872 150,872 2,503,202 2,503,202 2,503,202 2,352,330 2,352,330 2,352,330

Note: Discounted and annualized amounts are calculated assuming expenditures and payments at the end of year.

This final rule would result in benefits (i.e., compliance cost savings) to the small businesses. To assess the impact to small businesses, benefits were calculated as a percentage of businesses' revenues. Annual revenue figures could be found for only two of the four applicants that were determined to be small businesses \7\ 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, it was found that the small business benefits of the final rule would have greater than a one percent positive impact on annual revenues.

\7\ Due to limited data on business revenue and/or employee totals, it could not be determined whether two potential DSHMRA applicants were small businesses. Hence, these businesses were not included in this analysis.

This final rule will 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 permit applications. These changes and their impacts are described in more depth in Chapters 4 and 5 of the Final RIA. 7. Overlapping, Duplicative, or Conflicting Federal Rules

The requirements of this final rule will not duplicate, overlap, or conflict with any other Federal requirement. 8. Steps Taken To Minimize the Significant Impact on Small Entities

The requirements in the final rule would bring benefits (i.e., compliance cost savings) to small businesses. NOAA's ability under the Act to develop alternatives to the license and permit processes are 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 various 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 imposes a cost burden of $150,000 when compared to the total cost of $200,000 when permits are pursued sequentially. Additionally, as required in the Act (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, this fee may be adjusted up or down depending on the administrative costs incurred. For further discussion of the consolidated application fee, please refer to Comments 33 and 34, and NOAA's responses to those comments, above.

This rule contains a collection-of-information requirement subject to review and approval by the OMB under the PRA, 44 U.S.C. 3501 et seq. This rule extends and revises the requirements for the collection of information 0648-0145, formerly titled “Deep Seabed Mining Regulations for Exploration Licenses” and now renamed “Deep Seabed Mining Regulations.” In accordance with Section 3507(d) of the PRA, the information collection requirements included in this rule have been submitted for approval to OMB.

This rule permits the submissions of consolidated applications seeking both 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 the 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 seven applicants anticipated per year resulting in total annual burden hours of 5,250. 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 seven 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. These estimates reflect an upper bound which may overstate the anticipated annual burden, and the burden estimates will be updated in the next renewal cycle based on the actual number of applications received. NOAA 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 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 estimate that the 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 10 anticipated annual reports per year, that would result in a total of 200 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 100 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 one 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 8,055 hours. The estimated total annual wage burden costs would be $926,325 based on the Bureau of Labor Statistics Occupational Outlook Handbook mean annual wage estimate for Chief Executives (11-1011) at $239,200 (https://www.bls.gov/ooh/management/top-executives.htm#tab-5). 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 since the consolidated application fee has been set at this amount. 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 seven exploration license applications and one commercial recovery permit application per year, this would be a total estimated annual cost to respondents of $800,000 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 that 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, https://data.bls.gov/oesprofile/) 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/hour = $26,358.

In sum, the total estimated annual cost burden to respondents or record keepers is $1,176,358. This total estimated annual cost burden does not include the cost of wage burden hours described above; the total estimated wage burden cost is $926,325 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 (https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2025/RUS.pdf) 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 (https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2025/ALJ.pdf) 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.

NOAA solicited comments on this determination in the proposed rule, and several comments addressing the impact to small business and the cost burden were received. These comments were reviewed and addressed in the previous comment section. See NOAA Responses to Comments 21 and 22.

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.

NOAA analyzed this 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 June 30, 2025). This rule establishes a consolidated permit application process without changing the substantive standards to which applications will be held. Because this rulemaking includes only technical and/or procedural changes to the regulatory text, it falls within a category of actions that NOAA has determined normally does not significantly affect the quality of the human environment and therefore maybe excluded from the requirement to prepare an environmental assessment or an environmental impact statement. Specifically, the 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 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 determined that this 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 reviewed comments submitted in response to the notice of proposed rulemaking prior to concluding this NEPA process and finalizing this rule, and responses to those comments are included in the preamble of this final rule.