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Agreement relating to the Implementation of Part XI of the 
United Nations Convention on the Law of the Sea of 10 
December 1982 

Done at New York, 28 July 1994 

Provisional entry into force 16 November 1994 

Definitive entry into force 28 July 1996 

THE STATES PARTIES TO THIS AGREEMENT, 

RECOGNIZING the important contribution of the United Nations 
Convention on the Law of the Sea of 10 December 1982 
(hereinafter referred to as "the Convention" to the 
maintenance of peace, justice and progress for all peoples of 
the world, 

REAFFIRMING that the seabed and ocean floor and subsoil 
thereof, beyond the limits of national jurisdiction 
(hereinafter referred to as "the Area"), as well as the 
resources of the Area, are the common heritage of mankind, 

MINDFUL of the importance of the Convention for the 
protection and preservation of the marine environment and of 
the growing concern for the global environment, 

HAVING CONSIDERED the report of the Secretary-General of the 
United Nations on the results of the informal consultations 
among States held from 1990 to 1994 on outstanding issues 
relating to Part XI and related provisions of the Convention 
(hereinafter referred to as "Part XI"), 

NOTING the political and economic changes, including market-
oriented approaches, affecting the implementation of Part XI, 

WISHING to facilitate universal participation in the 
Convention, 

CONSIDERING that an agreement relating to the implementation 
of Part XI would best meet that objective, 

HAVE AGREED as follows: 

Article 1 

Implementation of Part XI 

1. The States Parties to this Agreement undertake to 
implement Part XI in accordance with this Agreement. 

2. The Annex forms an integral part of this Agreement. 

Article 2 

Relationship between this Agreement and Part XI 

1. The provisions of this Agreement and Part XI shall be 
interpreted and applied together as a single instrument. In 
the event of any inconsistency between this Agreement and 
Part XI, the provisions of this Agreement shall prevail. 

2. Articles 309 to 319 of the Convention shall apply to this 
Agreement as they apply to the Convention. 

Article 3 

Signature 

This Agreement shall remain open for signature at United 
Nations Headquarters by the States and entities referred to 
in article 305, paragraph 1(a), (c), (d), (e) and (f), of the 
Convention for 12 months from the date of its adoption. 

Article 4 

Consent to be bound 

1. After the adoption of this Agreement, any instrument of 
ratification or formal confirmation of or accession to the 
Convention shall also represent consent to be bound by this 
Agreement. 

2. No State or entity may establish its consent to be bound 
by this Agreement unless it has previously established or 
establishes at the same time its consent to be bound by the 
Convention. 

3. A State or entity referred to in article 3 may express its 
consent to be bound by this Agreement by: 

(a) signature not subject to ratification, formal 
confirmation or the procedure set out in article 5; 

(b) signature subject to ratification or formal confirmation, 
followed by ratification or formal confirmation; 

(c) signature subject to the procedure set out in article 5; 
or 

(d) accession. 

4. Formal confirmation by the entities referred to in article 
305, paragraph 1(f), of the Convention shall be in accordance 
with Annex IX of the Convention. 

5. The instruments of ratification, formal confirmation or 
accession shall be deposited with the Secretary-General of 
the United Nations. 

Article 5 

Simplified procedure 

1. A State or entity which has deposited before the date of 
the adoption of this Agreement an instrument of ratification 
or formal confirmation of or accession to the Convention and 
which has signed this Agreement in accordance with Article 4, 
paragraph 3(c), shall be considered to have established its 
consent to be bound by this Agreement 12 months after the 
date of its adoption, unless that State or entity notifies 
the depositary in writing before that date that it is not 
availing itself of the simplified procedure set out in this 
article. 

2. In the event of such notification, consent to be bound by 
this Agreement shall be established in accordance with 
article 4, paragraph 3(b). 

Article 6 

Entry into force 

1. This Agreement shall enter into force 30 days after the 
date on which 40 States have established their consent to be 
bound in accordance with articles 4 and 5, provided that such 
States include at least seven of the States referred to in 
paragraph 1(a) of resolution II of the Third United Nations 
Conference on the Law of the Sea (hereinafter referred to as 
"resolution II") and that at least five of those States are 
developed States. If these conditions for entry into force 
are fulfilled before 16 November 1994, this Agreement shall 
enter into force on 16 November 1994. 

2. For each State or entity establishing its consent to be 
bound by this Agreement after the requirements set out in 
paragraph 1 have been fulfilled, this Agreement shall enter 
into force on the thirtieth day following the date of 
establishment of its consent to be bound. 

Article 7 

Provisional application 

1. If on 16 November 1994 this Agreement has not entered into 
force, it shall be applied provisionally pending its entry 
into force by: 

(a) States which have consented to its adoption in the 
General Assembly of the United Nations, except any such State 
which before 16 November 1994 notifies the depositary in 
writing either that it will not so apply this Agreement or 
that it will consent to such application only upon subsequent 
signature or notification in writing; 

(b) States and entities which sign this Agreement, except any 
such State or entity which notifies the depositary in writing 
at the time of signature that it will not so apply this 
Agreement; 

(c) States and entities which consent to its provisional 
application by so notifying the depositary in writing; 

(d) States which accede to this Agreement. 

2. All such States and entities shall apply this Agreement 
provisionally in accordance with their national or internal 
laws and regulations, with effect from 16 November 1994 or 
the date of signature, notification of consent or accession, 
if later. 

3. Provisional application shall terminate upon the date of 
entry into force of this Agreement. In any event, provisional 
application shall terminate on 16 November 1998 if at that 
date the requirement in article 6, paragraph 1, of consent to 
be bound by this Agreement by at least seven of the States 
(of which at least five must be developed States) referred to 
in paragraph 1(a) of resolution II has not be fulfilled. 

Article 8 

States Parties 

1. For the purposes of this Agreement, "States Parties" means 
States which have consented to be bound by this Agreement and 
for which this Agreement is in force. 

2. This Agreement applies mutatis mutandis to the entities 
referred to in article 305, paragraph 1(c), (d), (e) and (f), 
of the Convention which become Parties to this Agreement in 
accordance with the conditions relevant to each, and to that 
extent "States Parties" refers to those entities. 

Article 9 

Depositary 

The Secretary-General of the United Nations shall be the 
depositary of this Agreement. 

Article 10 

Authentic texts 

The original of this Agreement, of which the Arabic, Chinese, 
English, French, Russian and Spanish texts are equally 
authentic, shall be deposited with the Secretary-General of 
the United Nations. 

IN WITNESS WHEREOF, the undersigned Plenipotentiaries, being 
duly authorized thereto, have signed this Agreement. 

DONE AT NEW YORK this 28 day of July, one thousand nine 
hundred and ninety-four. 

Annex 

SECTION 1. COSTS TO STATES PARTIES AND INSTITUTIONAL 
ARRANGEMENTS 

1. The International Seabed Authority (hereinafter referred 
to as "the Authority") is the organization through which 
States Parties to the Convention shall, in accordance with 
the regime for the Area established in Part XI and this 
Agreement, organize and control activities in the Area, 
particularly with a view to administering the resources of 
the Area. The powers and functions of the Authority shall be 
those expressly conferred upon it by the Convention. The 
Authority shall have such incidental powers, consistent with 
the Convention, as are implicit in, and necessary for, the 
exercise of those powers and functions with respect to 
activities in the Area. 

2. In order to minimize costs to States Parties, all organs 
and subsidiary bodies to be established under the Convention 
and this Agreement shall be cost-effective. This principle 
shall also apply to the frequency, duration and scheduling of 
meetings. 

3. The setting up and the functioning of the organs and 
subsidiary bodies of the Authority shall be based on an 
evolutionary approach, taking into account the functional 
needs of the organs and subsidiary bodies concerned in order 
that they may discharge effectively their respective 
responsibilities at various stages of the development of 
activities in the Area. 

4. The early functions of the Authority upon entry into force 
of the Convention shall be carried out by the Assembly, the 
Council, the Secretariat, the Legal and Technical Commission 
and the Finance Committee. The functions of the Economic 
Planning Commission shall be performed by the Legal and 
Technical Commission until such time as the Council decides 
otherwise or until the approval of the first plan of work for 
exploitation. 

5. Between the entry into force of the Convention and the 
approval of the first plan of work for exploitation, the 
Authority shall concentrate on: 

(a) processing of applications for approval of plans of work 
for exploration in accordance with Part XI and this 
Agreement; 

(b) implementation of decisions of the Preparatory Commission 
for the International Seabed Authority and for the 
International Tribunal for the Law of the Sea (hereinafter 
referred to as "the Preparatory Commission") relating to the 
registered pioneer investors and their certifying States, 
including their rights and obligations, in accordance with 
article 308, paragraph 5, of the Convention and resolution 
II, paragraph 13; 

(c) monitoring of compliance with plans of work for 
exploration approved in the form of contracts; 

(d) monitoring and review of trends and developments relating 
to deep seabed mining activities, including regular analysis 
of world metal market conditions and metal prices, trends and 
prospects; 

(e) study of the potential impact of mineral production from 
the Area on the economies of developing land-based producers 
of those minerals which are likely to be most seriously 
affected, with a view to minimizing their difficulties and 
assisting them in their economic adjustment, taking into 
account the work done in this regard by the Preparatory 
Commission; 

(f) adoption of rules, regulations and procedures necessary 
for the conduct of activities in the Area as they progress. 
Notwithstanding the provisions of Annex III, article 17, 
paragraph 2(b) and (c), of the Convention, such rules, 
regulations and procedures shall take into account the terms 
of this Agreement, the prolonged delay in commercial deep 
seabed mining and the likely pace of activities in the Area; 

(g) adoption of rules, regulations and procedures 
incorporating applicable standards for the protection and 
preservation of the marine environment; 

(h) promotion and encouragement of the conduct of marine 
scientific research with respect to activities in the Area 
and the collection and dissemination of the results of such 
research and analysis, when available, with particular 
emphasis on research related to the environmental impact of 
activities in the Area; 

(i) acquisition of scientific knowledge and monitoring of the 
development of marine technology relevant to activities in 
the Area, in particular technology relating to the protection 
and preservation of the marine environment; 

(j) assessment of available data relating to prospecting and 
exploration; 

(k) timely elaboration of rules, regulations and procedures 
for exploitation, including those relating to the protection 
and preservation of the marine environment. 

6. (a) An application for approval of a plan of work for 
exploration shall be considered by the Council following the 
receipt of a recommendation on the application from the Legal 
and Technical Commission. The processing of an application 
for approval of a plan of work for exploration shall be in 
accordance with the provisions of the Convention, including 
Annex III thereof, and this Agreement, and subject to the 
following: 

(i) a plan of work for exploration submitted on behalf of a 
State or entity, or any component of such entity, referred to 
in resolution II, paragraph 1(a)(ii) or (iii), other than a 
registered pioneer investor, which had already undertaken 
substantial activities in the Area prior to the entry into 
force of the Convention, or its successor in interest, shall 
be considered to have met the financial and technical 
qualifications necessary for approval of a plan of work if 
the sponsoring State or States certify that the applicant has 
expended an amount equivalent to at least US$ 30 million in 
research and exploration activities and has expended no less 
than 10 per cent of that amount in the location, survey and 
evaluation of the area referred to in the plan of work. If 
the plan of work otherwise satisfies the requirements of the 
Convention and any rules, regulations and procedures adopted 
pursuant thereto, it shall be approved by the Council in the 
form of a contract. The provisions of section 3, paragraph 
11, of this Annex shall be interpreted and applied 
accordingly; 

(ii) notwithstanding the provisions of resolution II, 
paragraph 8(a), a registered pioneer investor may request 
approval of a plan of work for exploration within 36 months 
of the entry into force of the Convention. The plan of work 
for exploration shall consist of documents, reports and other 
data submitted to the Preparatory Commission both before and 
after registration and shall be accompanied by a certificate 
of compliance, consisting of a factual report describing the 
status of fulfilment of obligations under the pioneer 
investor regime, issued by the Preparatory Commission in 
accordance with resolution II, paragraph 11(a). Such a plan 
of work shall be considered to be approved. Such an approved 
plan of work shall be in the form of a contract concluded 
between the Authority and the registered pioneer investor in 
accordance with Part XI and this Agreement. The fee of US$ 
250,000 paid pursuant to resolution II, paragraph 7(a), shall 
be deemed to be the fee relating to the exploration phase 
pursuant to section 8, paragraph 3, of this Annex. Section 3, 
paragraph 11, of this Annex shall be interpreted and applied 
accordingly; 

(iii) in accordance with the principle of non-discrimination, 
a contract with a State or entity or any component of such 
entity referred to in subparagraph (a)(i) shall include 
arrangements which shall be similar to and no less favourable 
than those agreed with any registered pioneer investor 
referred to in subparagraph (a)(ii). If any of the States or 
entities or any components of such entities referred to in 
subparagraph (a)(i) are granted more favourable arrangements, 
the Council shall make similar and no less favourable 
arrangements with regard to the rights and obligations 
assumed by the registered pioneer investors referred to in 
subparagraph (a)(ii), provided that such arrangements do not 
affect or prejudice the interests of the Authority; 

(iv) a State sponsoring an application for a plan of work 
pursuant to the provisions of subparagraph (a)(i) or (ii) may 
be a State Party or a State which is applying this Agreement 
provisionally in accordance with article 7, or a State which 
is a member of the Authority on a provisional basis in 
accordance with paragraph 12; 

(v) Resolution II, paragraph 8(c), shall be interpreted and 
applied in accordance with subparagraph (a)(iv). 

(b) the approval of a plan of work for exploration shall be 
in accordance with article 153, paragraph 3, of the 
Convention. 

7. An application for approval of a plan of work shall be 
accompanied by an assessment of the potential environmental 
impacts of the proposed activities and by a description of a 
programme for oceanographic and baseline environmental 
studies in accordance with the rules, regulations and 
procedures adopted by the Authority. 

8. An application for approval of a plan of work for 
exploration, subject to paragraph 6(a)(i) or (ii), shall be 
processed in accordance with the procedures set out in 
section 3, paragraph 11, of this Annex. 

9. A plan of work for exploration shall be approved for a 
period of 15 years. Upon the expiration of a plan of work for 
exploration, the contractor shall apply for a plan of work 
for exploitation unless the contractor has already done so or 
has obtained an extension for the plan of work for 
exploration. Contractors may apply for such extensions for 
periods of not more than five years each. Such extensions 
shall be approved if the contractor has made efforts in good 
faith to comply with the requirements of the plan of work but 
for reasons beyond the contractor's control has been unable 
to complete the necessary preparatory work for proceeding to 
the exploitation stage or if the prevailing economic 
circumstances do not justify proceeding to the exploitation 
stage. 

10. Designation of a reserved area for the Authority in 
accordance with Annex III, article 8, of the Convention shall 
take place in connection with approval of an application for 
a plan of work for exploration or approval of an application 
for a plan of work for exploration and exploitation. 

11. Notwithstanding the provisions of paragraph 9, an 
approved plan of work for exploration which is sponsored by 
at least one State provisionally applying this Agreement 
shall terminate if such a State ceases to apply this 
Agreement provisionally and has not become a member on a 
provisional basis in accordance with paragraph 12 or has not 
become a State Party. 

12. Upon the entry into force of this Agreement, States and 
entities referred to in article 3 of this Agreement which 
have been applying it provisionally in accordance with 
article 7 and for which it is not in force may continue to be 
members of the Authority on a provisional basis pending its 
entry into force for such States and entities, in accordance 
with the following subparagraphs: 

(a) if this Agreement enters into force before 16 November 
1996, such States and entities shall be entitled to continue 
to participate as members of the Authority on a provisional 
basis upon notification to the depositary of the Agreement by 
such a State or entity of its intention to participate as a 
member on a provisional basis. Such membership shall 
terminate either on 16 November 1996 or upon the entry into 
force of this Agreement and the Convention for such member, 
whichever is earlier. The Council may, upon the request of 
the State or entity concerned, extend such membership beyond 
16 November 1996 for a further period or periods not 
exceeding a total of two years provided that the Council is 
satisfied that the State or entity concerned has been making 
efforts in good faith to become a party to the Agreement and 
the Convention; 

(b) if this Agreement enters into force after 15 November 
1996, such States and entities may request the Council to 
grant continued membership in the Authority on a provisional 
basis for a period of periods not extending beyond 16 
November 1998. The Council shall grant such membership with 
effect from the date of the request if it is satisfied that 
the State or entity has been making efforts in good faith to 
become a party to the Agreement and the Convention; 

(c) States and entities which are members of the Authority on 
a provisional basis in accordance with subparagraph (a) or 
(b) shall apply the terms of Part XI and this Agreement in 
accordance with their national or internal laws, regulations 
and annual budgetary appropriations and shall have the same 
rights and obligations as other members, including: 

(i) the obligation to contribute to the administrative budget 
of the Authority in accordance with the scale of assessed 
contributions; 

(ii) the right to sponsor an application for approval of a 
plan of work for exploration. In the case of entities whose 
components are natural or juridical persons possessing the 
nationality of more than one State, a plan of work for 
exploration shall not be approved unless all the States whose 
natural or juridical persons comprise those entities are 
States Parties or members on a provisional basis; 

(d) notwithstanding the provisions of paragraph 9, an 
approved plan of work in the form of a contract for 
exploration which was sponsored pursuant to subparagraph 
(c)(ii) by a State which was a member on a provisional basis 
shall terminate if such membership ceases and the State or 
entity has not become a State Party; 

(e) if such a member has failed to make its assessed 
contributions or otherwise failed to comply with its 
obligations in accordance with this paragraph, its membership 
on a provisional basis shall be terminated. 

13. The reference in Annex III, article 10, of the Convention 
to performance which has not been satisfactory shall be 
interpreted to mean that the contractor has failed to comply 
with the requirements of an approved plan of work in spite of 
a written warning or warnings from the Authority to the 
contractor to comply therewith. 

14. The Authority shall have its own budget. Until the end of 
the year following the year during which this Agreement 
enters into force, the administrative expenses of the 
Authority shall be met through the budget of the United 
Nations. Thereafter, the administrative expenses of the 
Authority shall be met by assessed contributions of its 
members, including any members on a provisional basis, in 
accordance with articles 171, subparagraph (a), and 173 of 
the Convention and this Agreement, until the Authority has 
sufficient funds from other sources to meet those expenses. 
The Authority shall not exercise the power referred to in 
Article 174, paragraph 1, of the Convention to borrow funds 
to finance its administrative budget. 

15. The Authority shall elaborate and adopt, in accordance 
with article 162, paragraph 2(o)(ii), of the Convention, 
rules, regulations and procedures based on the principles 
contained in sections 2, 5, 6, 7 and 8 of this Annex, as well 
as any additional rules, regulations and procedures necessary 
to facilitate the approval of plans of work for exploration 
or exploitation, in accordance with the following 
subparagraphs: 

(a) the Council may undertake such elaboration any time it 
deems that all or any of such rules, regulations or 
procedures are required for the conduct of activities in the 
Area, or when it determines that commercial exploitation is 
imminent, or at the request of a State whose national intends 
to apply for approval of a plan of work for exploitation; 

(b) if a request is made by a State referred to in 
subparagraph (a) the Council shall, in accordance with 
article 162, paragraph 2(o), of the Convention, complete the 
adoption of such rules, regulations and procedures within two 
years of the request; 

(c) if the Council has not completed the elaboration of the 
rules, regulations and procedures relating to exploitation 
within the prescribed time and an application for approval of 
a plan of work for exploitation is pending, it shall none the 
less consider and provisionally approve such plan of work 
based on the provisions of the Convention and any rules, 
regulations and procedures that the Council may have adopted 
provisionally, or on the basis of the norms contained in the 
Convention and the terms and principles contained in this 
Annex as well as the principle of non-discrimination among 
contractors. 

16. The draft rules, regulations and procedures and any 
recommendations relating to the provisions of Part XI, as 
contained in the reports and recommendations of the 
Preparatory Commission, shall be taken into account by the 
Authority in the adoption of rules, regulations and 
procedures in accordance with Part XI and this Agreement. 

17. The relevant provisions of Part XI, section 4, of the 
Convention shall be interpreted and applied in accordance 
with this Agreement. 

SECTION 2. THE ENTERPRISE 

1. The Secretariat of the Authority shall perform the 
functions of the Enterprise until it begins to operate 
independently of the Secretariat. The Secretary-General of 
the Authority shall appoint from within the staff of the 
Authority an interim Director-General to oversee the 
performance of these functions by the Secretariat. 

These functions shall be: 

(a) monitoring and review of trends and developments relating 
to deep seabed mining activities, including regular analysis 
of world metal market conditions and metal prices, trends and 
prospects; 

(b) assessment of the results of the conduct of marine 
scientific research with respect to activities in the Area, 
with particular emphasis on research related to the 
environmental impact of activities in the Area; 

(c) assessment of available data relating to prospecting and 
exploration, including the criteria for such activities; 

(d) assessment of technological developments relevant to 
activities in the Area, in particular technology relating to 
the protection and preservation of the marine environment; 

(e) evaluation of information and data relating to areas 
reserved for the Authority; 

(f) assessment of approaches to joint-venture operations; 

(g) collection of information on the availability of trained 
manpower; 

(h) study of managerial policy options for the administration 
of the Enterprise at different stages of its operations. 

2. The Enterprise shall conduct its initial deep seabed 
mining operations through joint ventures. Upon the approval 
of a plan of work for exploitation for an entity other than 
the Enterprise, or upon receipt by the Council of an 
application for a joint-venture operation with the 
Enterprise, the Council shall take up the issue of the 
functioning of the Enterprise independently of the 
Secretariat of the Authority. If joint-venture operations 
with the Enterprise accord with sound commercial principles, 
the Council shall issue a directive pursuant to article 170, 
paragraph 2, of the Convention providing for such independent 
functioning. 

3. The obligation of States Parties to fund one mine site of 
the Enterprise as provided for in Annex IV, article 11, 
paragraph 3, of the Convention shall not apply and States 
Parties shall be under no obligation to finance any of the 
operations in any mine site of the Enterprise or under its 
joint-venture arrangements. 

4. The obligations applicable to contractors shall apply to 
the Enterprise. Notwithstanding the provisions of article 
153, paragraph 3, and Annex III, article 3, paragraph 5, of 
the Convention, a plan of work for the Enterprise upon its 
approval shall be in the form of a contract concluded between 
the Authority and the Enterprise. 

5. A contractor which has contributed a particular area to 
the Authority as a reserved area has the right of first 
refusal to enter into a joint-venture arrangement with the 
Enterprise for exploration and exploitation of that area. If 
the Enterprise does not submit an application for a plan of 
work for activities in respect of such a reserved area within 
15 years of the commencement of its functions independent of 
the Secretariat of the Authority or within 15 years of the 
date on which that area is reserved for the Authority, 
whichever is the later, the contractor which contributed the 
area shall be entitled to apply for a plan of work for that 
area provided it offers in good faith to include the 
Enterprise as a joint-venture partner. 

6. Article 170, paragraph 4, Annex IV and other provisions of 
the Convention relating to the Enterprise shall be 
interpreted and applied in accordance with this section. 

SECTION 3. DECISION-MAKING 

1. The general policies of the Authority shall be established 
by the Assembly in collaboration with the Council. 

2. As a general rule, decision-making in the organs of the 
Authority should be by consensus. 

3. If all efforts to reach a decision by consensus have been 
exhausted, decisions by voting in the Assembly on questions 
of procedure shall be taken by a majority of members present 
and voting, and decisions on questions of substance shall be 
taken by a two-thirds majority of members present and voting, 
as provided for in article 159, paragraph 8, of the 
Convention. 

4. Decisions of the Assembly on any matter for which the 
Council also has competence or on any administrative, 
budgetary or financial matter shall be based on the 
recommendations of the Council. If the Assembly does not 
accept the recommendation of the Council on any matter, it 
shall return the matter to the Council for further 
consideration. The Council shall reconsider the matter in the 
light of the views expressed by the Assembly. 

5. If all efforts to reach a decision by consensus have been 
exhausted, decisions by voting in the Council on questions of 
procedure shall be taken by a majority of members present and 
voting, and decisions on questions of substance, except where 
the Convention provides for decisions by consensus in the 
Council, shall be taken by a two-thirds majority of members 
present and voting, provided that such decisions are not 
opposed by a majority in any one of the chambers referred to 
in paragraph 9. In taking decisions the Council shall seek to 
promote the interests of all the members of the Authority. 

6. The Council may defer the taking of a decision in order to 
facilitate further negotiation whenever it appears that all 
efforts at achieving consensus on a question have not been 
exhausted. 

7. Decisions by the Assembly or the Council having financial 
or budgetary implications shall be based on the 
recommendations of the Finance Committee. 

8. The provisions of article 161, paragraph 8(b) and (c), of 
the Convention shall not apply. 

9. (a) Each group of States elected under paragraph 15(a) to 
(c) shall be treated as a chamber for the purposes of voting 
in the Council. The developing States elected under paragraph 
15(d) and (e) shall be treated as a single chamber for the 
purposes of voting in the Council. 

(b) Before electing the members of the Council, the Assembly 
shall establish lists of countries fulfilling the criteria 
for membership in the groups of States in paragraph 15(a) to 
(d). If a State fulfils the criteria for membership in more 
than one group, it may only be proposed by one group for 
election to the Council and it shall represent only that 
group in voting in the Council. 

10. Each group of States in paragraph 15(a) to (d) shall be 
represented in the Council by those members nominated by that 
group. Each group shall nominate only as many candidates as 
the number of seats required to be filled by that group. When 
the number of potential candidates in each of the groups 
referred to in paragraph 15(a) to (e) exceeds the number of 
seats available in each of those respective groups, as a 
general rule, the principle of rotation shall apply. States 
members of each of those groups shall determine how this 
principle shall apply in those groups. 

11. (a) The Council shall approve a recommendation by the 
Legal and Technical Commission for approval of a plan of work 
unless by a two-thirds majority of its members present and 
voting, including a majority of members present and voting in 
each of the chambers of the Council, the Council decides to 
disapprove a plan of work. If the Council does not take a 
decision on a recommendation for approval of a plan of work 
within a prescribed period, the recommendation shall be 
deemed to have been approved by the Council at the end of 
that period. The prescribed period shall normally be 60 days 
unless the Council decides to provide for a longer period. If 
the Commission recommends the disapproval of a plan of work 
or does not make a recommendation, the Council may 
nevertheless approve the plan of work in accordance with its 
rules of procedure for decision-making on questions of 
substance. 

(b) The provisions of article 162, paragraph 2(j), of the 
Convention shall not apply. 

12. Where a dispute arises relating to the disapproval of a 
plan of work, such dispute shall be submitted to the dispute 
settlement procedures set out in the Convention. 

13. Decisions by voting in the Legal and Technical Commission 
shall be by a majority of members present and voting. 

14. Part XI, section 4, subsections B and C, of the 
Convention shall be interpreted and applied in accordance 
with this section. 

15. The Council shall consist of 36 members of the Authority 
elected by the Assembly in the following order: 

(a) four members from among those States Parties which, 
during the last five years for which statistics are 
available, have either consumed more than 2 per cent in value 
terms of total world consumption or have had net imports of 
more than 2 per cent in value terms of total world imports of 
the commodities produced from the categories of minerals to 
be derived from the Area, provided that the four members 
shall include one State from the Eastern European region 
having the largest economy in that region in terms of gross 
domestic product and the State, on the date of entry into 
force of the Convention, having the largest economy in terms 
of gross domestic product, if such States wish to be 
represented in this group; 

(b) four members from among the eight States Parties which 
have made the largest investments in preparation for and in 
the conduct of activities in the Area, either directly or 
through their nationals; 

(c) four members from among States Parties which, on the 
basis of production in areas under their jurisdiction, are 
major net exporters of the categories of minerals to be 
derived from the Area, including at least two developing 
States whose exports of such minerals have a substantial 
bearing upon their economies; 

(d) six members from among developing States Parties, 
representing special interests. The special interests to be 
represented shall include those of States with large 
populations, States which are land-locked or geographically 
disadvantaged, island States, States which are major 
importers of the categories of minerals to be derived from 
the Area, States which are potential producers of such 
minerals and least developed States; 

(e) eighteen members elected according to the principle of 
ensuring an equitable geographical distribution of seats in 
the Council as a whole, provided that each geographical 
region shall have at least one member elected under this 
subparagraph. For this purpose, the geographical regions 
shall be Africa, Asia, Eastern Europe, Latin America and the 
Caribbean and Western Europe and Others. 

16. The provisions of article 161, paragraph 1, of the 
Convention shall not apply. 

SECTION 4. REVIEW CONFERENCE 

The provisions relating to the Review Conference in article 
155, paragraphs 1, 3 and 4, of the Convention shall not 
apply. Notwithstanding the provisions of article 314, 
paragraph 2, of the Convention, the Assembly, on the 
recommendation of the Council, may undertake at any time a 
review of the matters referred to in article 155, paragraph 
1, of the Convention. Amendments relating to this Agreement 
and Part XI shall be subject to the procedures contained in 
articles 314, 315 and 316 of the Convention, provided that 
the principles, regime and other terms referred to in article 
155, paragraph 2, of the Convention shall be maintained and 
the rights referred to in paragraph 5 of that article shall 
not be affected. 

SECTION 5. TRANSFER OF TECHNOLOGY 

1. In addition to the provisions of article 144 of the 
Convention, transfer of technology for the purposes of Part 
XI shall be governed by the following principles: 

(a) the Enterprise, and developing States wishing to obtain 
deep seabed mining technology, shall seek to obtain such 
technology on fair and reasonable commercial terms and 
conditions on the open market, or through joint-venture 
arrangements; 

(b) if the Enterprise or developing States are unable to 
obtain deep seabed mining technology, the Authority may 
request all or any of the contractors and their respective 
sponsoring State or States to cooperate with it in 
facilitating the acquisition of deep seabed mining technology 
by the Enterprise or its joint venture, or by a developing 
State or States seeking to acquire such technology on fair 
and reasonable commercial terms and conditions, consistent 
with the effective protection of intellectual property 
rights. States Parties undertake to cooperate fully and 
effectively with the Authority for this purpose and to ensure 
that contractors sponsored by them also cooperate fully with 
the Authority; 

(c) as a general rule, States Parties shall promote 
international technical and scientific cooperation with 
regard to activities in the Area either between the parties 
concerned or by developing training, technical assistance and 
scientific cooperation programmes in marine science and 
technology and the protection and preservation of the marine 
environment. 

2. The provisions of Annex III, article 5, of the Convention 
shall not apply. 

SECTION 6. PRODUCTION POLICY 

1. The production policy of the Authority shall be based on 
the following principles: 

(a) development of the resources of the Area shall take place 
in accordance with sound commercial principles; 

(b) the provisions of the General Agreement on Tariffs and 
Trade, its relevant codes and successor or superseding 
agreements shall apply with respect to activities in the 
Area; 

(c) in particular, there shall be no subsidization of 
activities in the Area except as may be permitted under the 
agreements referred to in subparagraph (b). Subsidization for 
the purpose of these principles shall be defined in terms of 
the agreements referred to in subparagraph (b); 

(d) There shall be no discrimination between minerals derived 
from the Area and from other sources. There shall be no 
preferential access to markets for such minerals or for 
imports of commodities produced from such minerals, in 
particular: 

(i) by the use of tariff or non-tariff barriers; and 

(ii) given by States Parties to such minerals or commodities 
produced by their state enterprises or by natural or 
juridical persons which possess their nationality or are 
controlled by them or their nationals; 

(e) the plan of work for exploitation approved by the 
Authority in respect of each mining area shall indicate an 
anticipated production schedule which shall include the 
estimated maximum amounts of minerals that would be produced 
per year under the plan of work; 

(f) the following shall apply to the settlement of disputes 
concerning the provisions of the agreements referred to in 
subparagraph (b): 

(i) where the States Parties concerned are parties to such 
agreements, they shall have recourse to the dispute 
settlement procedures of those agreements; 

(ii) where one or more of the States Parties concerned are 
not parties to such agreements, they shall have recourse to 
the dispute settlement procedures set out in the Convention; 

(g) in circumstances where a determination is made under the 
agreements referred to in subparagraph (b) that a State Party 
has engaged in subsidization which is prohibited or has 
resulted in adverse effects on the interests of another State 
Party and appropriate steps have not been taken by the 
relevant State Party or States Parties, a State Party may 
request the Council to take appropriate measures. 

2. The principles contained in paragraph 1 shall not affect 
the rights and obligations under any provision of the 
agreements referred to in paragraph 1(b), as well as the 
relevant free trade and customs union agreements, in 
relations between States Parties which are parties to such 
agreements. 

3. The acceptance by a contractor of subsidies other than 
those which may be permitted under the agreements referred to 
in paragraph 1(b) shall constitute a violation of the 
fundamental terms of the contract forming a plan of work for 
the carrying out of activities in the Area. 

4. Any State Party which has reason to believe that there has 
been a breach of the requirements of paragraphs 1(b) to (d) 
or 3 may initiate dispute settlement procedures in conformity 
with paragraph 1(f) or (g). 

5. A State Party may at any time bring to the attention of 
the Council activities which in its view are inconsistent 
with the requirements of paragraph 1(b) to (d). 

6. The Authority shall develop rules, regulations and 
procedures which ensure the implementation of the provisions 
of this section, including relevant rules, regulations and 
procedures governing the approval of plans of work. 

7. The provisions of article 151, paragraphs 1 to 7 and 9, 
article 162, paragraph 2 (q), article 165, paragraph 2(n), 
and Annex III, article 6, paragraph 5, and article 7, of the 
Convention shall not apply. 

SECTION 7. ECONOMIC ASSISTANCE 

1. The policy of the Authority of assisting developing 
countries which suffer serious adverse effects on their 
export earnings or economies resulting from a reduction in 
the price of an affected mineral or in the volume of exports 
of that mineral, to the extent that such reduction is caused 
by activities in the Area, shall be based on the following 
principles: 

(a) the Authority shall establish an economic assistance fund 
from a portion of the funds of the Authority which exceeds 
those necessary to cover the administrative expenses of the 
Authority. The amount set aside for this purpose shall be 
determined by the Council from time to time, upon the 
recommendation of the Finance Committee. Only funds from 
payments received from contractors, including the Enterprise, 
and voluntary contributions shall be used for the 
establishment of the economic assistance fund; 

(b) developing land-based producer States whose economies 
have been determined to be seriously affected by the 
production of minerals from the deep seabed shall be assisted 
from the economic assistance fund of the Authority; 

(c) the Authority shall provide assistance from the fund to 
affected developing land-based producer States, where 
appropriate, in cooperation with existing global or regional 
development institutions which have the infrastructure and 
expertise to carry out such assistance programmes; 

(d) the extent and period of such assistance shall be 
determined on a case-by-case basis. In doing so, due 
consideration shall be given to the nature and magnitude of 
the problems encountered by affected developing land-based 
producer States. 

2. Article 151, paragraph 10, of the Convention shall be 
implemented by means of measures of economic assistance 
referred to in paragraph 1. Article 160, paragraph 2(1), 
article 162, paragraph 2(n), article 164, paragraph 2(d), 
article 171, subparagraph (f), and article 173, paragraph 
2(c), of the Convention shall be interpreted accordingly. 

SECTION 8. FINANCIAL TERMS OF CONTRACTS 

1. The following principles shall provide the basis for 
establishing rules, regulations and procedures for financial 
terms of contracts: 

(a) the system of payments to the Authority shall be fair 
both to the contractor and to the Authority and shall provide 
adequate means of determining compliance by the contractor 
with such system; 

(b) the rates of payments under the system shall be within 
the range of those prevailing in respect of land-based mining 
of the same or similar minerals in order to avoid giving deep 
seabed miners an artificial competitive advantage or imposing 
on them a competitive disadvantage; 

(c) the system should not be complicated and should not 
impose major administrative costs on the Authority or on a 
contractor. Consideration should be given to the adoption of 
a royalty system or a combination of a royalty and profit-
sharing system. If alternative systems are decided upon, the 
contractor has the right to choose the system applicable to 
its contract. Any subsequent change in choice between 
alternative systems, however, shall be made by agreement 
between the Authority and the contractor; 

(d) an annual fixed fee shall be payable from the date of 
commencement of commercial production. This fee may be 
credited against other payments due under the system adopted 
in accordance with subparagraph (c). The amount of the fee 
shall be established by the Council; 

(e) the system of payments may be revised periodically in the 
light of changing circumstances. Any changes shall be applied 
in a non-discriminatory manner. Such changes may apply to 
existing contracts only at the election of the contractor. 
Any subsequent change in choice between alternative systems 
shall be made by agreement between the Authority and the 
contractor; 

(f) disputes concerning the interpretation or application of 
the rules and regulations based on these principles shall be 
subject to the dispute settlement procedures set out in the 
Convention. 

2. The provisions of Annex III, article 13, paragraphs 3 to 
10, of the Convention shall not apply. 

3. With regard to the implementation of Annex III, article 
13, paragraph 2, of the Convention, the fee for processing 
applications for approval of a plan of work limited to one 
phase, either the exploration phase or the exploitation 
phase, shall be US$ 250,000. 

SECTION 9. THE FINANCE COMMITTEE 

1. There is hereby established a Finance Committee. The 
Committee shall be composed of 15 members with appropriate 
qualifications relevant to financial matters. States Parties 
shall nominate candidates of the highest standards of 
competence and integrity. 

2. No two members of the Finance Committee shall be nationals 
of the same State Party. 

3. Members of the Finance Committee shall be elected by the 
Assembly and due account shall be taken of the need for 
equitable geographical distribution and the representation of 
special interests. Each group of States referred to in 
section 3, paragraph 15(a), (b), (c) and (d), of this Annex 
shall be represented on the Committee by at least one member. 
Until the Authority has sufficient funds other than assessed 
contributions to meet its administrative expenses, the 
membership of the Committee shall include representatives of 
the five largest financial contributors to the administrative 
budget of the Authority. Thereafter, the election of one 
member from each group shall be on the basis of nomination by 
the members of the respective group, without prejudice to the 
possibility of further members being elected from each group. 

4. Members of the Finance Committee shall hold office for a 
term of five years. They shall be eligible for re-election 
for a further term. 

5. In the event of the death, incapacity or resignation of a 
member of the Finance Committee prior to the expiration of 
the term of office, the Assembly shall elect for the 
remainder of the term a member from the same geographical 
region or group of States. 

6. Members of the Finance Committee shall have no financial 
interest in any activity relating to matters upon which the 
Committee has the responsibility to make recommendations. 
They shall not disclose, even after the termination of their 
functions, any confidential information coming to their 
knowledge by reason of their duties for the Authority. 

7. Decisions by the Assembly and the Council on the following 
issues shall take into account recommendations of the Finance 
Committee: 

(a) draft financial rules, regulations and procedures of the 
organs of the Authority and the financial management and 
internal financial administration of the Authority; 

(b) assessment of contributions of members to the 
administrative budget of the Authority in accordance with 
article 160, paragraph 2(e), of the Convention; 

(c) all relevant financial matters, including the proposed 
annual budget prepared by the Secretary-General of the 
Authority in accordance with article 172 of the Convention 
and the financial aspects of the implementation of the 
programmes of work of the Secretariat; 

(d) the administrative budget; 

(e) financial obligations of States Parties arising from the 
implementation of this Agreement and Part XI as well as the 
administrative and budgetary implications of proposals and 
recommendations involving expenditure from the funds of the 
Authority; 

(f) rules, regulations and procedures on the equitable 
sharing of financial and other economic benefits derived from 
activities in the Area and the decisions to be made thereon. 

8. Decisions in the Finance Committee on questions of 
procedure shall be taken by a majority of members present and 
voting. Decisions on questions of substance shall be taken by 
consensus. 

9. The requirement of article 162, paragraph 2(y), of the 
Convention to establish a subsidiary organ to deal with 
financial matters shall be deemed to have been fulfilled by 
the establishment of the Finance Committee in accordance with 
this section.