Summary: H.R. 2759 represents an improved legislative mechanism for guiding the orderly development of deep seabed mineral resources. The bill still reflects deficiencies of serious concern. There is a strong public equity interest in deep seabed resources. An exploration and leasing system is necessary to provide, in a manner similar to the existing system for outer continental shelf oil and gas resources, for payments to the Federal Government for these public resources. H.R. 2759 distinguishes between exploration and development activity; it provides for sharing of exploration information with the Government; it provides that an escrow fund be established; it recognizes the propriety of requirements for diligent development and fair market value return; and it recognizes the need to coordinate deep-sea mining activities with overall foreign policy objectives and encourage the successful negotiation of a comprehensive Law of the Sea Treaty. H.R. 2759 still shows a lack of definitive agreement on how deep seabed mining is to be managed. There is also a major discrepancy between payment requirements from developers of deep seabed mining resources under this legislation and payments from developers of the outer continental shelf controlled land resources under existing legislation.
