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

Administrative practice and procedure, Marine resources, Mineral resources.

Neil A. Jacobs, Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator, National Oceanic and Atmospheric Administration.

For the reasons stated in the preamble, NOAA amends 15 CFR parts 970 and 971 as follows:

PART 970--DEEP SEABED MINING REGULATIONS FOR EXPLORATION LICENSES

0 1. The authority citation for part 970 continues to read as follows:

Authority: 30 U.S.C. 1401 et seq.

0 2. Amend Sec. 970.200 by revising paragraph (b) to read as follows:

Sec. 970.200 General.

* * * * *

(b) Place, form and copies. Applications for the issuance or transfer of exploration licenses shall be submitted in electronic format, verified and signed by an authorized officer or other authorized representative of the applicant, to an email address or website as specified by NOAA. The application format shall be organized according to the specific regulatory topics and sections. 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. eastern time on the next business day. * * * * *

0 3. Amend Sec. 970.208 by revising the first sentence in paragraph (b) to read as follows:

Sec. 970.208 Fee.

* * * * *

(b) Amount. In order to meet this requirement, a fee payment of $100,000 payable to the National Oceanic and Atmospheric Administration, Department of Commerce, shall be submitted prior to or concurrent with each application; the application should state the method of payment and the date the payment was submitted. * * *

0 4. Revise Sec. 970.209 to read as follows:

Sec. 970.209 Substantial compliance with application requirements.

(a) Priority of right for the issuance of licenses to new entrants shall be established on the basis of the chronological order in which

exploration license applications filed under subpart A of this part and consolidated license and permit applications filed under Sec. 971.214 of this chapter that are in substantial compliance are received by the Administrator.

(b) In order for an application to be in substantial compliance, it shall include information specifically identifiable with and materially responsive to the requirements contained in, as applicable, Sec. Sec. 970.201 through 970.208 or Sec. 971.214(d) of this chapter. A determination on substantial compliance shall relate only to whether the application contains the required information and does not constitute a determination on certification of the application, or on issuance or transfer of a license or permit.

(c) The Administrator shall notify the applicant in writing whether the application is in substantial compliance within 30 days of receipt of an application. The notice shall identify, if applicable, in what respects the application is not in either full or substantial compliance. If the application is in substantial but not full compliance, the notice shall specify the information which the applicant shall submit in order to bring it into full compliance, and why the additional information is necessary.

0 5. Revise Sec. 970.210 to read as follows:

Sec. 970.210 Reasonable time for full compliance.

Priority of right shall not be lost in case of any application filed which is in substantial but not full compliance, as specified in Sec. 970.209, if the Administrator determines that the applicant, within 60 days after issuance to the applicant by the Administrator of written notice that the application is in substantial but not full compliance, has brought the application into full compliance with the requirements, as applicable, of Sec. Sec. 970.201 through 970.208 or Sec. 971.214(d) of this chapter.

0 6. Amend Sec. 970.303 by revising paragraph (a) to read as follows:

Sec. 970.303 Procedures for new entrants.

(a) Filing of new entrant applications or amendments; priority of right. New entrant applications or amendments shall be filed in accordance with Sec. 970.200 or, as applicable, Sec. 971.214(b) and (c) of this chapter. A new entrant may file an application or amendment only at or after 1500 hours GMT (11:00 a.m. EDT) January 3, 1983. All applications or amendments filed at that time shall be deemed to be filed simultaneously, and, if in accordance with Sec. 970.209, shall have priority of right over any application or amendment filed subsequently. Priority of right for any application or amendment filed after that time shall be established as described in Sec. 970.209. * * * * *

0 7. Amend Sec. 970.500 by revising paragraph (a) to read as follows:

Sec. 970.500 General.

(a) Proposal. After certification of an application pursuant to subpart D of this part, or, as applicable, Sec. 971.214(e) of this chapter, the Administrator shall proceed with a proposal to issue or transfer a license for the exploration activities described in the application. * * * * *

0 8. Amend Sec. 970.513 by revising the third sentence in paragraph (a) and paragraphs (b) and (c)(1) to read as follows:

Sec. 970.513 Revision of a license.

(a) * * * In some cases, it may even be advisable to recognize at the time of filing the original license application that although the essential information for issuing or transferring a license as specified in Sec. Sec. 970.201 through 920.208, or as specified in Sec. 971.214(d) of this chapter, as applicable, shall be included in such application, some details may have to be provided in the future in the form of a revision. * * *

(b) The Administrator shall approve such application for a revision upon a finding in writing that the revision shall comply with the requirements of the Act and this part.

(c) * * *

(1) The bases for certifying the original application pursuant to Sec. Sec. 970.401 through 970.406, or, as applicable, pursuant to Sec. 971.214(e) of this chapter; * * * * *

PART 971--DEEP SEABED MINING REGULATIONS FOR COMMERCIAL RECOVERY PERMITS

0 9. The authority citation for part 971 continues to read as follows:

Authority: 30 U.S.C. 1401 et seq.

0 10. Amend Sec. 971.101 by revising paragraphs (d) and (r) to read as follows:

Sec. 971.101 Definitions.

* * * * *

(d) Applicant means an applicant for a commercial recovery permit pursuant to the Act and this part; as used in Sec. 971.214, applicant means an applicant using the consolidated exploration license and commercial recovery permit application process; as used in subparts H, I and J of this part, “applicant” also means an applicant for an exploration license pursuant to the Act and part 970 of this chapter. “Applicant” also means a proposed permit transferee; * * * * *

(r) Recovery plan or commercial recovery plan means the plan submitted by an applicant for a commercial recovery permit pursuant to Sec. 971.203 or, as applicable, pursuant to Sec. 971.214; * * * * *

0 11. Amend Sec. 971.200 by revising paragraph (b) to read as follows:

Sec. 971.200 General.

* * * * *

(b) Place, form and copies. An application for the issuance or transfer of a commercial recovery permit shall be submitted in electronic format, verified and signed by an authorized officer or other authorized representative of the applicant, to an email address or website as specified by NOAA. The application format shall be organized according to the specific regulatory topics and sections. 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. eastern time on the next business day. * * * * *

0 12. Amend Sec. 971.208 by revising the first sentence in paragraph (b) to read as follows:

Sec. 971.208 Fee.

* * * * *

(b) Amount. A fee payment of $100,000 payable to the National Oceanic and Atmospheric Administration, Department of Commerce, shall be submitted prior to or concurrent with each application; the application should state the method of payment and the date the payment was submitted. * * *

0 13. Add Sec. 971.214 to read as follows:

Sec. 971.214 Consolidated license and permit procedures.

(a) Applicability and Order of Precedence. This section shall govern all consolidated applications that seek both an exploration license and a commercial recovery permit under the Act. Consolidated license and permit applications shall follow the requirements in this section and not the requirements set forth in Sec. Sec. 970.200 through 970.208 of this chapter, 970.400 through 970.408 of this chapter, and Sec. Sec. 971.200 through 971.210, and 971.300 through 971.303. All other requirements set forth in 15 CFR parts 970 and 971 that are not in conflict with

the requirements of this section shall apply to a consolidated license and permit application, and all the sections in part 970 of this chapter and this part, except for this section, shall continue to apply to individual license or permit applications. With respect to consolidated applications filed under this section, in the event of any conflict or inconsistency between any provision of this section and any provision of part 970 of this chapter and this part, the provision of this section shall control.

(b) Who may apply; how. Any United States citizen who can demonstrate that he, she, or it possesses the scientific, technical, and financial resources to pursue commercial recovery activities in an expeditious and diligent manner may apply to the Administrator for issuance or transfer of an exploration license and a commercial recovery permit using the “consolidated license and permit procedures” as set out in this section. Under these consolidated procedures, a qualified applicant may submit a single consolidated application that seeks both an exploration license and a commercial recovery permit. The Administrator shall issue an exploration license and a commercial recovery permit to the applicant if the application complies with the Act and regulations. The Administrator shall consolidate public hearings and other proceedings for the concurrent processing of the issue or transfer of the license or permit to the extent practicable. The Administrator may prepare a single environmental impact statement that evaluates the impacts of both exploration activities and commercial recovery activities, rather than one environmental impact statement for the exploration license and another environmental impact statement for the commercial recovery permit. Further, the Administrator shall prepare and issue separate proposals to issue or transfer the license or permit, in accordance with Sec. Sec. 970.500 of this chapter and Sec. 971.400; each proposed license or permit will have its own proposed terms, conditions, and restrictions.

(c) Application and form of applications. The application shall contain the information required in paragraph (d) of this section, in the order they appear. Each portion of the application shall identify the requirements of this section to which it responds. An applicant shall request to have any information in its application be kept confidential at the time of submitting the information. An applicant shall include information previously submitted that the applicant will rely on in the consolidated license and permit application. Applications shall be submitted electronically as specified by the Administrator. 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. eastern time on the next business day.

(d) Contents. The application shall contain information sufficient to enable the Administrator to make the findings set forth in 30 U.S.C. 1415(a) and 15 CFR 970.500(c), 971.214(e), and 971.400(c), including the items in paragraphs (d)(1) through (11) of this section.

(1) Past exploration description and statement of diligence. A statement by the applicant demonstrating that it possesses the scientific, technical, and financial resources to pursue commercial recovery activities in an expeditious and diligent manner, and detailed support for this statement. Support for this statement may include descriptions of past exploration activities or other relevant information, including, to the extent applicable, paragraphs (d)(1)(i) through (iii) of this section (to the extent this information is not applicable, the application should affirmatively state so):

(i) The description of past exploration activities shall contain information on what relevant work, if any, was performed prior to application submission by the applicant, the proposed transferor, or other entities prior to application. This description shall also include when the work was performed, what entity performed the work, the applicant's relationship to the entity performing the work, and the information collected as a result, including the items in paragraphs (d)(1)(i)(A) through (F) of this section:

(A) Survey cruises to determine the location and abundance of nodules as well as the sea floor configuration, ocean currents and other physical characteristics of potential commercial recovery sites;

(B) Assaying nodules to determine their metal contents;

(C) Designing and testing system components onshore and at sea;

(D) Designing and testing mining systems that simulate commercial recovery;

(E) Designing and testing processing systems to prove concepts and designing and testing systems that simulate commercial processing; and

(F) Evaluating the continued feasibility of commercial scale operations based on technical, economic, legal, and environmental considerations.

(ii) An explanation, with support, for why the applicant qualifies to use the consolidated license and permit procedures in this section, including demonstrating that the applicant possesses the scientific, technical, and financial resources to pursue commercial recovery activities in an expeditious and diligent manner. Support for this statement may include, but is not limited to, past exploration activities (described in paragraph (d)(1)(i) of this section), any other relevant prior work or experience of the applicant or affiliates of the applicant, including work in ocean exploration, mineral extraction, or processing, or other relevant information, such as access to or analysis of information regarding resource assessments or sea floor data, agreements with other entities experienced in deep-sea exploration or commercial recovery, access to or the development of relevant emergent technologies, or any other information the applicant deems to be relevant to and supportive of its assertion it is qualified to use the consolidated application.

(iii) Documentation of any agreements, contracts, or partnerships of other businesses or entities that the applicant will rely on for the various parts of any exploration or commercial recovery operations or financing.

(2) Statement of financial resources. Information sufficient to demonstrate that the applicant is capable of committing or raising sufficient resources to cover the estimated costs of the exploration program contained in the exploration plan and the commercial recovery program contained in the commercial recovery plan, required by paragraphs (d)(4) and (5) of this section, including general estimated costs of the exploration and commercial recovery plans. In addition to general estimated costs, the application shall provide an estimated schedule of expenditures that lists estimated expenditures for the work proposed in both the exploration plan and the recovery plan. Other information shall include, to the extent it is available, the most recent audited financial statement (for publicly-held companies, the most recent annual report and Form 10-K filed with the Securities and Exchange Commission) for the applicant and those entities upon which the applicant will rely to finance the exploration activities and the credit and bond rating of the applicant and such financing entities. An applicant may provide other economic analyses to demonstrate the ability to raise sufficient financial resources, including an internal rate of return (IRR) analysis.

(3) Statement of technological experience and capabilities. Information sufficient to demonstrate that the applicant possesses or has access to the technological capability to carry out the exploration program contained in the exploration plan and the commercial recovery program contained in the commercial recovery plan. In particular, the information submitted pursuant to this section shall describe the equipment, knowledge, and skills the applicant possesses or to which it can demonstrate access, including:

(i) A description of the exploration equipment to be used by the applicant in carrying out the exploration program;

(ii) A description of the environmental monitoring equipment to be used by the applicant in monitoring the environmental effects of the exploration program;

(iii) A description of the technology, equipment, and methods to be used by the applicant in carrying out each step in the mining process, including nodule collection, retrieval, transfer to ship, environmental monitoring, transport to processing facilities, nodule processing, waste disposal and compliance with applicable water quality standards. The description shall include:

(A) An analysis of the performance of experimental systems, sub- systems, or analogous machinery;

(B) The rationale for extrapolating from test results to commercial mining;

(C) Anticipated system reliability within the context of anticipated production time lost through equipment failure; and

(D) A functional description of the types of technical qualifications the applicant will require for persons operating its equipment.

(4) Exploration plan. A description of the applicant's proposed exploration activities including sufficient information for the Administrator to make the necessary determinations pertaining to the certification and issuance of a license and to the development and enforcement of the terms, conditions and restrictions (TCRs) for a license; and the specific items in paragraphs (d)(4)(i) through (iv) of this section:

(i) A description of the activities proposed to be carried out during the period of the license;

(ii) A description of the area that will be explored, including its delineation according to Sec. 970.601 of this chapter;

(iii) The intended exploration schedule addressing which of the exploration activities in paragraphs (d)(4)(iii)(A) through (F) of this section the applicant intends to conduct after the issuance of the license and when each of these proposed activities will occur:

(A) Conducting survey cruises to determine the location and abundance of nodules as well as the sea floor configuration, ocean currents and other physical characteristics of potential commercial recovery sites;

(B) Assaying nodules to determine their metal contents;

(C) Designing and testing system components onshore and at sea, or an explanation as to why this is not necessary;

(D) Designing and testing mining systems which simulate commercial recovery, or an explanation as to why this is not necessary;

(E) Designing and testing processing systems to prove concepts and designing and testing systems which simulate commercial processing; and

(F) Evaluating the continued feasibility of commercial scale operations based on technical, economic, legal, political and environmental considerations;

(iv) For exploration activities that the applicant intends to conduct under an exploration license:

(A) A description of the methods to determine the location, abundance, and quality (i.e., assay) of nodules and to measure physical conditions in the area that will affect nodule recovery system design and operations (e.g., seafloor topography, seafloor geotechnical properties, and currents);

(B) A general description of the recovery and processing technology related to the proposed license and of any planned testing and evaluation of such technology addressing such factors as nodule collection technique, seafloor sediment rejection subsystem, mineship nodule separation scheme, pumping method, anticipated equipment test areas, and details on the testing plan; and

(C) Measures to protect the environment and to monitor the effectiveness of environmental safeguards and monitoring systems. These measures shall take into account the provisions in Sec. Sec. 970.506, 970.518, 970.522 of this chapter and subpart G of part 970 of this chapter.

(5) Commercial Recovery Plan. Description of the applicant's projected commercial recovery activities for the twenty-year period to be covered by the proposed permit, including: sufficient information for the Administrator to make the necessary determinations pertaining to the certification and issuance of a permit and to the development and enforcement of the TCRs for a permit; and the specific items in paragraphs (d)(5)(i) through (vii) of this section:

(i) A description of the activities proposed to be carried out during the period of the permit;

(ii) The intended schedule of commercial recovery (see “Diligent commercial recovery,” Sec. 971.503);

(iii) Environmental safeguards and monitoring systems, which may evolve over time in light of the findings of any environmental impact statements (EIS) that the Administrator prepares on the proposed activities in the consolidated license and permit application and as required for project development phases and shall take into account requirements under subpart F of this part, including best available technologies (BAT) (Sec. 971.604) and monitoring (Sec. 971.603);

(iv) Details of the area or areas proposed for commercial recovery, which meet requirements for diligence (Sec. 971.503) and conservation of resources pursuant to subpart E of this part (including Sec. 971.502);

(v) A resource assessment of the area or areas proposed for commercial recovery which addresses the requirements for resource assessment and logical mining unit (Sec. 971.501) to the extent practicable. The resource assessment may be preliminary at the time of application and may be supplemented following completion of any EISs or during the duration of the license or permit, as additional information is collected;

(vi) A description of the methods and technology to be used for commercial recovery and processing (see Sec. 971.202(b)(1)); and

(vii) The methods to be used for disposal of wastes from recovery and processing, including the areas for disposal and identification of any toxic substances in wastes.

(6) Environmental and use conflict analysis. Sufficient marine environmental information for the Administrator to prepare any environmental impact statements (EIS) on the proposed activities in the consolidated license and permit application and to determine the appropriate permit TCRs, including the items in paragraphs d(6)(i) through (iv) of this section. The Administrator may require the submission of additional data in the event the Administrator determines that the bases for suitable EISs or a determination of appropriate TCRs is not available.

(i) Physical, chemical and biological information describing the environmental characteristics of the relevant area, including relevant

environmental information obtained during past exploration activities;

(ii) A monitoring plan for any proposed but not yet completed exploration activities, including test mining, and any at-sea commercial recovery activities that meet the objectives and requirements of Sec. 971.603. The monitoring plan may be preliminary at the time of application and shall be finalized following completion of any EISs and in coordination with the development of the TCRs, incorporating relevant environmental data, impact modeling, and assessment outcomes;

(iii) Information known to the applicant on other uses of the proposed mining area to support the Administrator's determination regarding potential use conflicts between commercial mining activities and those activities of other nations or of other U.S. citizens and to assist the Administrator in making determinations related to potential use conflicts pursuant to Sec. Sec. 970.503, 970.505, and 970.520 of this chapter, and Sec. Sec. 971.403, 971.405, and 971.421; and

(iv) Onshore information including the location and operation of nodule processing facilities in accordance with Sec. 971.606.

(7) Vessel safety and documentation. In order to provide a basis for the necessary determinations with respect to the safety of life and property at sea, the application shall contain the information in paragraphs (d)(7)(i) through (iii) of this section for vessels used for the purposes covered by the application, except for vessels under 300 gross tons which are engaged in oceanographic research:

(i) U.S. flag vessel. A demonstration or affirmation that any U.S. flag vessel used in exploration activities shall possess a current valid Coast Guard Certificate of Inspection (COI). All mining ships and at least one of the transport ships used by each permittee shall be documented under the laws of the United States. To the extent that the applicant knows which U.S. flag vessels it will use, it shall include with its application copies of the vessels' current valid Coast Guard COIs.

(ii) Foreign flag vessels. To the extent that the applicant knows which foreign flag vessel(s) it will be using for other purposes, the application shall include evidence that:

(A) Any foreign flag vessel whose flag state is party to the International Convention for the Safety of Life at Sea, 1974 (SOLAS 74) possesses current valid SOLAS 74 certificates;

(B) Any foreign flag vessel whose flag state is not party to SOLAS 74 but is party to the International Convention for the Safety of Life at Sea, 1960 (SOLAS 60) possesses current valid SOLAS 60 certificates; and

(C) Any foreign flag vessel whose flag state is not a party to either SOLAS 74 or SOLAS 60 meets all applicable structural and safety requirements contained in the published rules of a member of the International Association of Classification Societies (IACS).

(iii) Supplemental certification. If the applicant does not know at the time of submitting an application which vessels it will be using, it shall submit the applicable certification to the Administrator for each vessel before the cruise on which it will be used.

(8) Statement of Ownership. Sufficient information to demonstrate that the applicant is a U.S. citizen, including:

(i) Name, address, and telephone number of the U.S. citizen responsible for exploration and commercial recovery operations to whom notices and orders are to be delivered; and

(ii) A description of the citizen or citizens engaging in such exploration and commercial recovery, including:

(A) Whether the citizen is a natural person, partnership, corporation, joint venture, or other form of association;

(B) The state of incorporation or state in which the partnership or other business entity is registered;

(C) The name of the registered agent or equivalent representative and places of business;

(D) Copies of essential and nonproprietary provisions in articles of incorporation, charter or articles of association; and

(E) The name of each member of the association, partnership, or joint venture, including information about the participation of each partner and joint venturer and/or ownership of stock.

(9) Antitrust information. In order to facilitate antitrust review pursuant to section 103(d) of the Act, the application shall contain:

(i) A copy of each agreement between any parties to any joint venture which is submitting a consolidated license and permit application, provided that said agreement relates to deep seabed hard mineral resource exploration or commercial recovery;

(ii) The identity of any affiliate, as defined in Sec. 970.101(d) of this chapter, of any person submitting a consolidated license and permit application; and

(iii) For each applicant, its affiliate, or parent or subsidiary of an affiliate which is engaged in production in, or the purchase or sale in or to, the United States of copper, nickel, cobalt or manganese minerals or any metals refined from these minerals:

(A) The annual tons and dollar value of any of these minerals and metals so purchased, sold or produced for the two preceding years;

(B) Copies of the annual report, balance sheet and income statement for the two preceding years; and

(C) Copies of each document submitted to the Securities and Exchange Commission.

(10) Fee. A fee payment of $350,000 payable to the National Oceanic and Atmospheric Administration, Department of Commerce, shall be submitted prior to or concurrent with each application; the application should state the method of payment and the date the payment was submitted. If the administrative costs of reviewing and processing the application are significantly less than or in excess of $350,000, the Administrator shall refund the difference or require the applicant to pay the additional amount before issuance or transfer of the license or permit. In the case of an application for transfer of a license or permit to, or for a significant change to a license or permit held by, an entity that has previously been found qualified for a permit, the Administrator may reduce the fee in advance by an appropriate amount which reflects costs avoided by reliance on previous findings made in relation to the proposed transferee. Payment of the application fee does not determine priority of right.

(11) Processing outside the United States. Except as provided in this section and Sec. 971.408, the processing of nodules recovered pursuant to a permit shall be conducted within the United States, provided that the President or his designee does not determine that this restriction contravenes the overriding national interests of the United States. The application shall contain the information outlined in Sec. 971.408 if applicable.

(e) Certification. To the maximum extent practicable, the Administrator shall certify a consolidated application within 100 days of the submission of an application which is in full compliance. If final certification or denial of certification has not occurred within 100 days after submission of the application, the Administrator shall inform the applicant in writing of the then pending unresolved issues, the agency's efforts to resolve them, and an estimate of the time required to do so. Certification shall occur after consultation with other departments and agencies pursuant to Sec. 970.211 of this chapter and Sec. 971.211 and determining in writing that:

(1) The applicant is qualified to use this consolidated license and permit application procedure as the applicant has demonstrated that the applicant possesses the scientific, technical, and financial resources to pursue commercial recovery activities in an expeditious and diligent manner.

(2) The issuance or transfer of the license and the permit would not violate any of the restrictions of 15 CFR 970.103(b) or 971.103(b).

(3) The size and location of the exploration and commercial recovery area selected by the applicant is approved, and this approval shall occur unless the Administrator determines that the area is not a logical mining unit under Sec. 970.601 of this chapter and Sec. 971.501, or commercial recovery activities in the proposed area would result in a significant adverse environmental effect which cannot be avoided by imposition of reasonable restrictions.

(4) The applicant:

(i) Has demonstrated that, upon issuance or transfer of the license and the permit, the applicant shall be financially responsible to meet all obligations which may be required to engage in its proposed exploration and commercial recovery activities;

(ii) Has demonstrated that, upon issuance or transfer of the license and the permit, the applicant shall possess or have access to the technological capability to engage in the proposed exploration and commercial recovery;

(iii) Has satisfactorily fulfilled all past obligations under any license or permit previously issued or transferred to the applicant under the Act;

(iv) Has an exploration plan which meets the requirements of paragraph (d)(4) of this section;

(v) Has a commercial recovery plan which meets the requirements of paragraph (d)(5) of this section; and

(vi) Has paid the application fee specified in paragraph (d)(10) of this section.

(f) Denial of certification. The Administrator may deny certification of an application if it does not meet the requirements of paragraph (e) of this section or the requirements for issuance or transfer under Sec. Sec. 970.503 through 970.507 of this chapter or Sec. Sec. 971.403 through 971.408. The Administrator shall send to the applicant and publish in the Federal Register written notice of a proposed denial of certification.

(1) Such notice shall include:

(i) The basis for the denial;

(ii) If the basis for the proposed denial is because the applicant is not qualified to use the consolidated procedures under this subsection:

(A) The reasons for that determination;

(B) The time within which the applicant may submit an amended application for an exploration license under part 970 of this chapter without disturbing the applicant's priority of right, which shall be 60 days except as specified by the Administrator for good cause; and

(C) The number of days from receipt of the amended application in which the Administrator shall certify or deny certification of the amended application in accordance with 15 CFR 970.400. The Administrator shall endeavor to complete certification of an amended application within 50 days of receipt.

(iii) If the basis for the proposed denial is a deficiency that the applicant can correct:

(A) How to correct the deficiency; and

(B) The time within which the corrected application shall be submitted, which shall not exceed 180 days except as specified by the Administrator for good cause.

(2) The Administrator shall deny certification:

(i) On the 30th day after the date the notice is sent to the applicant, under paragraph (f) of this section unless before that date the applicant files with the Administrator a written request for an administrative review of the proposed denial; or

(ii) On the last day of the period established under paragraph (f)(1)(ii)(B) of this section during which the applicant may submit an amended application for an exploration license under part 970 of this chapter, if the applicant fails to submit such an amended application before such day and an administrative review requested pursuant to paragraph (f)(2)(i) of this section is not pending;

(iii) On the last day of the period established under paragraph (f)(1)(iii)(B) of this section during which the applicant may correct a deficiency, if such deficiency has not been corrected before such day and an administrative review requested pursuant to paragraph (f)(2)(i) of this section is not pending.

(3) If a timely request for administrative review of the proposed denial is made by the applicant under paragraph (f)(2)(i) of this section, the Administrator shall promptly begin a formal hearing in accordance with subpart I of this part. If the proposed denial is the result of a correctable deficiency, the administrative review shall proceed concurrently with any attempts to correct the deficiency, unless the parties agree otherwise or the administrative law judge orders differently.

(4) The Administrator shall send the applicant written notice of any denial of certification including the reasons therefore.

(5) Any final determination granting or denying certification is subject to judicial review as provided in chapter 7 of title 5, United States Code.

(g) Effect of this section on pending applications. Within 60 days of this rule becoming final, an applicant who has an application for a license pending before the Administrator may notify the Administrator in writing of its intention to proceed under these consolidated procedures. Such applicants shall submit an amended application that complies with this subpart, and the amended application shall be processed in accordance with this subpart, 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.

0 14. Amend Sec. 971.400 by revising paragraph (a) to read as follows:

Sec. 971.400 General.

(a) Proposal. After certification of an application pursuant to subpart C of this part, or, as applicable, Sec. 971.214(e), the Administrator shall proceed with a proposal to issue or transfer a permit for the commercial recovery activities described in the application. * * * * *

0 15. Revise Sec. 971.407 to read as follows:

Sec. 971.407 Safety at sea.

Before issuing or transferring a commercial recovery permit, the Administrator shall find that the commercial recovery proposed in the application shall not pose an inordinate threat to the safety of life and property at sea. This finding shall be based on the requirements in Sec. 971.205, or as applicable, Sec. 971.214(d)(7), and subpart G of this part.

0 16. Amend Sec. 971.412 by revising paragraph (c)(1) to read as follows:

Sec. 971.412 Changes in permits and permit terms, conditions, and restrictions.

* * * * *

(c) * * *

(1) The bases for certifying the original application pursuant to Sec. 971.301 or, as applicable, pursuant to Sec. 971.214(e); * * * * *

0 17. Amend Sec. 971.413 by revising the second sentence in paragraph (a) to read as follows:

Sec. 971.413 Revision of a permit.

(a) * * * In some cases, it may be advisable to recognize at the time of filing the original permit application that, although the essential information for issuing or transferring a permit as specified in Sec. Sec. 971.201 through 971.209, or as applicable, Sec. 971.214(d), shall be included in such application, some details may have to be provided in the future in the form of a revision.* * * * * * * *

0 18. Amend Sec. 971.503 by revising paragraph (b) to read as follows:

Sec. 971.503 Diligent commercial recovery.

* * * * *

(b) To meet the diligence requirement, the applicant shall propose to the Administrator an estimated schedule of activities and expenditures pursuant to Sec. 971.203(b)(2), or as applicable, pursuant to Sec. 971.214(d)(2) and (d)(4)(iii). The schedule(s) shall show, and the Administrator must be able to make a reasonable determination, that the applicant can reasonably develop the resources in the permit area within the term of the permit. There must be a reasonable relationship between the size of the recovery area and the financial and technological resources reflected in the application. The permittee shall initiate the recovery of nodules in commercial quantities within ten years of the issuance of the permit unless this deadline is extended by the Administrator for good cause. * * * * *

0 19. Amend Sec. 971.701 by revising the third, fourth, and fifth sentences to read as follows:

Sec. 971.701 Criteria for safety of life and property at sea.

* * * United States flag vessels shall be required to meet all applicable regulatory requirements, including the requirement for a current valid Coast Guard Certificate of Inspection (pursuant to Sec. 971.205(a) or, as applicable, pursuant to Sec. 971.214(d)(7)(i)). United States flag vessels are under United States jurisdiction on the high seas and subject to domestic enforcement procedures. With respect to foreign flag vessels, the SOLAS 74 or SOLAS 60 certificate requirements specified in Sec. 971.205(b), or, as applicable, specified in Sec. 971.214(d)(7)(ii), apply.

0 20. Amend Sec. 971.802 by: 0 a. Revising paragraph (a); 0 b. Removing paragraphs (b) through (e); and 0 c. Redesignating paragraphs (f) and (g) as paragraphs (b) and (c).

The revisions read as follows:

Sec. 971.802 Public disclosure of documents received by NOAA.

(a) General. Procedures for requesting confidential treatment of information submitted to, reported to, or collected by the Administrator pursuant to this part and 15 CFR part 970 shall be in accordance with 15 CFR part 4. Procedures for requesting records and handling requests for records containing information submitted to, reported to, or collected by the Administrator pursuant to this part and 15 CFR part 970 shall also be in accordance with 15 CFR part 4. * * * * *

0 21. Amend Sec. 971.900 by revising paragraph (e) to read as follows:

Sec. 971.900 Applicability.

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(e) Hearings conducted in accordance with Sec. 971.302 or 15 CFR 970.407, or, as applicable, in accordance with Sec. 971.214(f) on a proposal to deny certification of an application; * * * * * [FR Doc. 2026-01044 Filed 1-20-26; 8:45 am] BILLING CODE 3510-08-P