S. 2053, The Deep Sea Minerals Resources Act

Resolution of the appropriate governmental role in deep ocean mining would be authorized by S. 2053, the Deep Sea Minerals Resources Act. Questions involving the need to coordinate deep ocean mining with overall foreign policy objectives and what share of the revenues from the deep ocean mining should accrue to the public remain unresolved. The bill would establish a system of issuing licenses on a first-come first-serve basis, enabling firms to retain all financial benefits from resource recovery. This provision would not allow the public to receive a fair market value return from the use of its resources. GAO supports a system for the granting of leases to ocean mining firms similar to the bidding, royalty, and information sharing program employed for oil and gas leasing on the Outer Continental Shelf. The Secretary of Commerce should provide funding to assess the environmental impact of key prototype mining operation tests. Specific provisions need to be developed for the operation of a revenue sharing escrow account into which the receipts from the leasing program would be placed pending their distribution. Congress should not enact the bill until the various problems outlined are resolved.