Convention on the Regulation of Antarctic Mineral Resource Activities in the United States

Article 45

Examination of Applications

1 The Regulatory Committee shall meet as soon as possible after an application
has been lodged pursuant to Article 44, for the purpose of elaborating a
Management Scheme. In performing this function it shall:

(a) determine whether the application contains sufficient or adequate
information pursuant to Article 44(2). To this end, it may at any time seek
further information from the Sponsoring State consistent with Article 44(2);

(b) consider the exploration and development activities proposed in the
application, and such elaborations, revisions or adaptations as necessary:

(i) to ensure their consistency with this Convention as well as measures in
effect pursuant thereto and the general requirements referred to in Article
43(3); and

(ii) to prescribe the specific terms and conditions of a Management Scheme in
accordance with Article 47.

2 At any time during the process of consideration described above, the
Regulatory Committee may decline the application if it considers that the
activities proposed therein cannot be elaborated, revised or adapted to ensure
consistency with this Convention as well as measures in effect pursuant thereto
and the general requirements referred to in Article 43(3).

3 In performing its functions under this Article, the Regulatory Committee shall
seek and take full account of the views of the Advisory Committee. To that end
the Regulatory Committee shall refer to the Advisory Committee all parts of the
application which are necessary for it to provide advice pursuant to Article 26,
together with any other relevant information.

4 If two or more applications meeting the requirements of Article 44(2) are
lodged in respect of the same block:

(a) the competing applicants shall be invited by the Regulatory Committee to
resolve the competition amongst themselves, by means of their own choice within
a prescribed period;

(b) if the competition is not resolved pursuant to subparagraph (a)
above it shall be resolved by the Regulatory Committee in accordance with the
method determined by it pursuant to Article 43(2)(e).

Article 46

Management Scheme

In performing its functions under Article 45, including the preparation of a
Management Scheme, and under Article 54, the Regulatory Committee shall have
recourse to the Sponsoring State and the member or members, if any, referred to
in Article 29(2)(a) and, as may be required, one or two additional members of
the Regulatory Committee.

Article 47

Scope of the Management Scheme

The Management Scheme shall prescribe the specific terms and conditions for
exploration and development of the mineral resource or resources concerned
within the relevant block. Such terms and conditions shall be consistent with
the general requirements referred to in Article 43(3), and shall cover, inter
alia:

(a) duration of exploration and development permits;

(b) measures and procedures for the protection of the Antarctic environment and
dependent and associated ecosystems, including methods, activities and
undertakings by the Operator to minimise environmental risks and damage;

(c) provision for necessary and timely response action, including prevention,
containment and clean up and removal measures, for restoration to the status quo
ante, and for contingency plans, resources and equipment to enable such action
to be taken;

(d) procedures for the implementation of different stages of exploration and
development;

(e) performance requirements;

(f) technical and safety specifications, including standards and procedures to
ensure safe operations;

(g) monitoring and inspection;

(h) liability;

(i) procedures for the development of mineral deposits which extend outside the
area covered by a permit;

(j) resource conservation requirements;

(k) financial obligations of the Operator including:

(i) levies in accordance with measures adopted pursuant to Article 21(1)(q);

(ii) payments in the nature of and similar to taxes, royalties or payments in
kind;

(l) financial guarantees and insurance;

(m) assignment and relinquishment;

(n) suspension and modification of the Management Scheme, or cancellation of the
Management Scheme, exploration or development permit, and the imposition of
monetary penalties, in accordance with Article 51;

(o) procedures for agreed modifications;

(p) enforcement of the Management Scheme;

(q) applicable law to the extent necessary;

(r) effective additional procedures for the settlement of disputes;

(s) provisions to avoid and to resolve conflict with other legitimate uses of
Antarctica;

(t) data and information collection, reporting and notification requirements;

(u) confidentiality; and

(v) removal of installations and equipment, as well as site rehabilitation.

Article 48

Approval of the Management Scheme

A Management Scheme prepared in accordance with Articles 45, 46 and 47 shall be
subject to approval pursuant to Article 32. Such approval shall
constitute authorisation for the issue without delay of an exploration permit
by the Regulatory Committee. The exploration permit shall with accord exclusive
rights to the Operator to explore and, subject to Articles 53 and 54, to develop
the mineral resource or resources which are the subject of the Management Scheme
exclusively in accordance with the terms and conditions of the Management
Scheme.

Article 49

Review

1 Any member of the Commission, or any member of a Regulatory Committee, may
within one month of a decision by that Regulatory Committee to approve a
Management Scheme or issue a development permit, request that the Commission be
convened in accordance with Article 19(2)(b) or (c), as the case may be, to
review the decision of the Regulatory Committee for consistency with the
decision taken by the Commission to identify the area pursuant to Article 41 and
any measures in effect relevant to that decision.

2 The Commission shall complete its consideration within three months of a
request made pursuant to paragraph 1 above. In performing its functions the
Commission shall not assume the functions of the Regulatory Committee, nor shall
it substitute its discretion for that of the Regulatory Committee.

3 Should the Commission determine that a decision to approve a Management Scheme
or issue a development permit is inconsistent with the decision taken by the
Commission to identify the area pursuant to Article 41 and any measures in
effect relevant to that decision, it may request that Regulatory Committee to
reconsider its decision.