OCR Text |
Show almost exclusively to oil, gas, and sulphur, information supplied by industry has resulted in minimal knowledge concerning other minerals. Both the present and potential income from Shelf minerals warrant an expanded Federal program for the development of knowledge about the geology of the Shelf, equal at least to the prevailing policy of information acquisition for onshore minerals. At the present time, Federal activity in this respect is not commensurate with onshore programs. An expanded program for the development of knowledge of the geology of the Shelf would be helpful in relating the mineral development program to other resources and values, as well as permitting more precise evaluations of lease proposals. Consequently, the Federal Government should undertake such an expanded program, but should not include location and evaluation of specific mineral deposits which are properly roles of the private sector. The level of activity should be comparable to that on upland areas. In addition, information developed by industry under exploration permits should be fully disclosed to the Government in advance of lease sales. The interpretation of geophysical data is in the nature of a prime trade secret of the company gathering the data, and its release to the Government, even on a confidential basis, would create competitive problems. There is, however, no valid reason for not requiring the disclosure of raw data. These data and their interpretation will be valuable in determining the resource potential of areas nominated for lease, in evaluating bids for leases, and in developing the need to include special requirements in leases and permits for the protection of the environment and of other uses of the Shelf. The Exploitation of Other Minerals The Commission recommends that the Government offer preferential rights of definite term to private industry to explore, develop, and produce minerals other than oil, gas, and sulphur from the Shelf. The Commission believes that no additional incentives are presently needed to encourage oil, gas, and sulphur development. Since the leasing system was inaugurated in 1954, over 1,200 leases have been issued for these minerals. Industry has invested large amounts in research and development, and current production from the Shelf, together with increasing potentials for the production of oil, gas, and sulphur, indicate that the economic production in itself is a sufficient incentive for needed exploration. A different situation, however, exists with regard to other minerals. Although the Outer Continental Shelf Lands Act authorizes leasing for such minerals,20 neither statutory guidelines nor general regulations concerning the terms and conditions of leases exist for them as they do for oil, gas, and sulphur. Accordingly, we have not developed the viable domestic ocean mining industry that may one day be essential to meet United States' mineral requirements. It is premature to recommend a long-range policy governing the development of these other minerals. Instead, it is suggested that Congress authorize the Secretary of the Interior to undertake experimental bidding and leasing arrangements, assuring mining companies of leases for a definite period, perhaps 10 years. In recommending flexible leasing arrangements, we have taken into consideration the recommendation that the location and patent system be extended to the Shelf. Although we recommend elsewhere in this report continuance of a modified location and patent system applicable to public lands generally, we do not believe it feasible to extend this system to the Outer Continental Shelf. However, we endorse the suggestion of the Commission on Marine Science, Engineering, and Resources that, in encouraging exploration of the Shelf, "The system's primary 2043U.S.C. § 1337(e) (1964). 194 Development of minerals other than oil and gas is in its infancy on the shelf. Here, an undersea research vehicle probes the ocean floor with manipulator arms. |