8 1 and one hundred twenty-five kilometers where the licensed 2 area consists of subsurface blocks; or (iv) which if licensed 3 would result in the United States licensing more than 30 per 4 centum of such area. 5 (b) No license shall be issued or transferred under this 6 Act, and no person subject to the jurisdiction of the United 7 States shall have any substantial interest in any license issued 8 by any State, which would result in any person directly or 9 indirectly holding, controlling, or having any substantial 10 interest in licenses for any portion of the deep seabed licensed 11 by any State which that person could not hold directly under 12 this Act because of the limitations of items (i) and (iii). MINIMUM ANNUAL EXPENDITURES 13 14 SEC. 7. It shall be a condition of each license issued 15 under this Act that the licensee make or cause to be made 16 minimum expenditures for development of each licensed 17 block in the following amounts per block until commercial 18 recovery from such block is first achieved: 19 Expenditures for offsite operations, facilities, or equipment 20 shall be included in computing required minimuni expendi21 tures where such offsite expenditures are directly related 22 to development of the licensed block or blocks. Expenditures 9 1 in any year in excess of the required minimum may be 2 credited to later years by the licensee. 3 4 RELINQUISHMENT; TRANSFER OR LOSS OF LICENSE SEC. 8. (a) Within ten years of the date any block is 5 licensed under this Act and not later than the start of com6 mercial recovery from such block, the licensee shall by 7 written notice to the Secretary relinquish 75 per centum 8 of such block measured laterally. The relinquishment shall 9 be such that the unrelinquished area conforins to the shape 10 of a block as defined under section 2 (c). The licensee shall 11 select the area of the block to be relinquished and as many as four contiguous blocks of the same type held by the 13 licensee may be treated as a single unit for purposes of 14 selecting the 75 per centum to be relinquished. 12 15 (b) Any license issued under this Act may be sur16 rendered at will and, ou written consent of the Secretary, transferred to any person who qualifies under section 5 (a) 18 and is not precluded from holding such license by section 17 19 6(b). Such license may be revoked for willful, substantial failure to comply with this Act, any regulation prescribed 21 thereunder, or any license condition, in a proceeding in an 22 appropriate United States district court: Provided, That 220 22 23 the Secretary has first given the licensee written notice of 24 such violation and the licensee has failed to remedy the vio25 lation within a reasonable period of time. 10 1 2 ESCROW FUND SEC. 9. A fund shall be established for assistance, as 3 Congress may hereafter direct, to developing reciprocating 4 States. The United States shall deposit in this fund each 5 year an amount equivalent to per centum of all license 6 fees collected during that year by the United States pursuant 7 to section 5 (a) and an amount equivalent to per centum 8 of all income tax revenues derived by the United States 9 10 11 which are directly attributable to recovery of hard minerals from the deep seabed pursuant to licenses issued under this Act: Provided, That the amount deposited by the United 12 States per license issued and per unrelinquished square kilo 13 14 15 16 17 18 19 20 21 22 meter under license shall not exceed the amount contributed for assistance to developing reciprocating States by other licensing reciprocating States (except developing States) per license issued by them and per unrelinquished square kilometer licensed by them. For the purposes of this section, "developing reciprocating State" means a reciprocating State designated by the President, taking into consideration per capita gross national product and other appropriate criteria. An appropriate amount to be determined by the Congress. 23 24 INVESTMENT PROTECTION SEC. 10. (a) Licenses issued under this Act may be made subject to any international regime for development of the deep seabed hereafter agreed to by the United States: 97-898 0-73-2 11 1 Provided, That such regime fully recognizes and protects the 2 exclusive rights of each licensee to develop the licensed block 3 for the term of the license: And provided further, That the 4 United States fully reimburses the licensee for any loss of 5 investment or increased costs of the licensee incurred within 6 forty years after issuance of the license due to requirements 7 or limitations imposed by the regime more burdensome than 8 those of this Act. The United States shall bear any payment 9 of whatever kind required of the licensee under the interna10 tional regime. The Secretary shall determine in the first in11 stance the amount owing on all claims for reimbursement 12 under this subsection... 13 14 of $ 18 (b) On annual payment by any licensee of a premium per $1,000 of insured risk of loss, the United *A suitable premium to be determined by the Congress. 15 States shall guarantee to reimburse the licensee for any loss 16 caused through any interference by any other person 17 (whether or not violative of international law) with devel opment by the licensee pursuant to the license and from any 19 loss caused by recovery by any person not authorized by the 20 licensee of hard minerals from any block subject to such a 21 license. The Secretary shall determine in the first instance 22 the amount owing on all claims for reimbursement under 23 this subsection. 12 1 NONDISCRIMINATORY TREATMENT 2 SEC. 11. All hard minerals recovered from the deep 3 seabed under a license issued pursuant to this Act shall be 4 deemed to have been recovered within the United States 5 for purposes of the import and tax laws and regulations of 6 the United States and such laws and regulations shall be 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 administered so that there shall be no discrimination be tween hard minerals recovered from the deep seabed and comparable hard minerals recovered within the United States. PENALTIES; RIGHTS OF ACTION SEC. 12. (a) Any person subject to the jurisdiction of the United States may be enjoined from directly or indirectly violating this Act or any regulations prescribed thereunder, interfering with development pursuant to any license issued under this Act or by any reciprocating state, or removing without authority of the licensee any hard minerals from any block subject to such a license. Any such person who directly or indirectly commits such violation, interference, or removal, shall be liable to any person in jured thereby for actual damages. Any such willful viola tion, interference, or removal by such person shall be a mis demeanor punishable by up to six months' imprisonment, a fine of $2,000, or both. (b) The United States district courts shall have original jurisdiction to enforce subsection (a) and to revoke licenses |