Xinhua News Agency, Beijing, October 30 (Reporters Yang Weihan and Cui Jing) — The 17th Session of the Standing Committee of the 12th National People's Congress began deliberating the draft Law on Exploration and Development of Resources in Deep-Sea Seabed Areas on the 30th. This draft law aims to regulate activities related to the exploration and development of resources in deep-sea seabed areas, protect the marine environment, ensure the safety of persons and property, enhance scientific and technological research and resource survey capabilities in the deep sea, and promote the sustainable utilization of resources in deep-sea seabed areas.

At the request of the Chairperson’s Meeting of the Standing Committee of the National People’s Congress, Lu Hao, Chairman of the Environmental and Resource Protection Committee of the National People’s Congress, delivered a statement on the draft Law on Exploration and Development of Resources in the Deep Seabed Areas. He pointed out that the United Nations Convention on the Law of the Sea, adopted in 1982 and entering into force in 1994, designates the international seabed area and its resources as the common heritage of mankind. On May 15, 1996, the 19th Session of the Standing Committee of the Eighth National People’s Congress approved the Convention, thereby making China a contracting party. To date, major developed countries and some developing countries have either enacted or are in the process of enacting laws governing the exploration and development of resources in the deep seabed areas. As a contracting party to the Convention, China should complete its legislative work at an early date. This is necessary for China to fulfill its international obligations and safeguard the interests of both the nation and all humanity. It will also help to effectively regulate exploration and development activities in the deep seabed areas and enhance the level of science and technology in deep-sea research.

The draft currently under development comprises seven chapters and 32 articles, clearly defining the legislative objectives and fundamental principles, the scope of legal application and management system, the substantive content and procedures for exploration and development, environmental protection requirements, scientific and technological research and capacity-building in deep-sea areas, institutional development and supervision and inspection, as well as legal liabilities.

The draft proposes that natural persons, legal entities, or other organizations of the People’s Republic of China, before applying to the International Seabed Authority for activities related to the exploration and development of resources in the deep seabed areas, shall submit an application to the marine authority under the State Council and provide a plan for exploration and development activities, including relevant information on the potential impacts of such activities on the marine environment. Applicants who obtain approval may engage in exploration and development activities after signing an exploration and development contract with the International Seabed Authority and becoming contractors.

The draft requires that the marine authority under the State Council shall conduct supervision and inspection on the contractor’s performance of the exploration and development contract. The contractor shall regularly report to the marine authority under the State Council on matters related to the fulfillment of the exploration and development contract, including the status of exploration and development activities, environmental monitoring results, and annual investment details.

The draft stipulates that anyone who engages in the exploration or development of resources in deep-sea seabed areas without obtaining the requisite permit or signing an exploration and development contract shall be ordered by the marine authority under the State Council to cease the illegal activity and fined between 100,000 yuan and 500,000 yuan. If such activities cause damage to the marine environment, the offender shall be required to take remedial measures within a specified time limit and fined between 500,000 yuan and 1 million yuan. In cases where the conduct constitutes a crime, criminal liability shall be pursued in accordance with the law.

To enhance capabilities in the exploration and development of deep-sea resources, the draft proposes that the state support the construction and operation of public deep-sea platforms, promote the establishment of a collaborative mechanism for sharing these platforms, and provide vessels, equipment, and specialized services to facilitate scientific and technological research and resource surveys in the deep sea. At the same time, the state encourages organizations and individuals to carry out popular science activities on deep-sea topics by opening up scientific research vessels, laboratories, exhibition halls, and other venues and facilities, as well as by organizing lectures and providing consultations in various other ways.

[In-depth Understanding]

Source: China National People's Congress Website, Date: November 6, 2015

The 17th Session of the Standing Committee of the 12th National People’s Congress conducted a first reading of the “Draft Law of the People’s Republic of China on Exploration and Development of Resources in the Deep Seabed Area.” The “Draft Law of the People’s Republic of China on Exploration and Development of Resources in the Deep Seabed Area” is now published on the website of the National People’s Congress of China, and public comments are being solicited. Members of the public may either directly log onto the website of the National People’s Congress (www.npc.gov.cn) to submit their comments, or send their comments by mail to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress (No. 1 Qianmen West Street, Xicheng District, Beijing, Postal Code: 100805. Please clearly mark “Comments Sought on the Draft Law on Exploration and Development of Resources in the Deep Seabed Area” on the envelope). The deadline for submitting comments is December 5, 2015.

     Law (Draft) on the Exploration and Development of Resources in the Deep Seabed Areas of the People’s Republic of China

     Table of Contents

Chapter 1 General Provisions

Chapter 2: Exploration and Development

Chapter 3: Environmental Protection

Chapter Four: Scientific and Technological Research and Resource Surveys

Chapter 5: Supervision and Inspection

Chapter Six: Penalties

Chapter VII: Supplementary Provisions

Chapter 1 General Provisions

　　Article 1: This Law is enacted to regulate activities related to the exploration and development of resources in the deep seabed area, protect the marine environment, enhance scientific and technological research and resource survey capabilities in the deep sea, ensure the safety of persons and property, and promote the sustainable utilization of resources in the deep seabed area.

　　Article 2: This Law applies to natural persons, legal entities, or other organizations of the People’s Republic of China engaged in the exploration and development of resources in the deep seabed areas, as well as related activities such as environmental protection, scientific and technological research, resource surveys, and the management of the aforementioned activities.

　　The deep seabed area refers to the seabed, ocean floor, and subsoil beyond the limits of national jurisdiction.

　　Article 3: Exploration and development activities for resources in the deep seabed areas shall adhere to the principles of environmental protection, scientific reliance, enhanced cooperation, and safeguarding the common interests of humanity.

　　The State safeguards the legitimate rights and interests of natural persons, legal entities, or other organizations of the People’s Republic of China engaged in exploration and development activities in the deep seabed areas.

　　Article 4: The State shall formulate plans for the exploration and development of resources in the deep seabed areas, and adopt economic and technological policies and measures to encourage scientific and technological research and resource surveys in the deep sea, thereby enhancing capabilities in resource exploration, development, and marine environmental protection.

　　Article 5: The marine administrative department of the State Council is responsible for the supervision and management of resource surveys, exploration, and development activities in the deep seabed areas.

　　The competent departments of the State Council—such as those for foreign affairs, development and reform, finance, science and technology, and transportation—are responsible for related management work in accordance with the duties prescribed by the State Council.

Article 6: The State encourages international cooperation in the exploration and development of resources in the deep-sea seabed areas, as well as in related scientific and technological research, technology transfer, education and training, resource surveys, and environmental protection.

Chapter 2: Exploration and Development

　　Article 7: Before applying to the International Seabed Authority for activities related to the exploration and development of resources in the deep seabed areas, natural persons, legal entities, or other organizations of the People’s Republic of China shall submit an application to the marine administrative authority under the State Council and provide the following materials:

　　(1) Basic information about the applicant;

　　(2) Description of the exploration and development area’s location, area, and types of minerals;

　　(3) Proof of financial investment and description of technical capabilities;

　　(4) Exploration and development work plans, including relevant information on the potential impacts of exploration and development activities on the marine environment;

　　(5) Emergency plan;

　　(6) Other materials required by the marine administration authority under the State Council.

　　Article 8: The marine administrative department of the State Council shall review the materials submitted by the applicant. If the application meets the national interests and satisfies the conditions prescribed by the marine administrative department of the State Council, a permit shall be granted within 60 working days, and the relevant documents shall be issued.

　　Applicants who have obtained authorization may engage in exploration and development activities after signing an exploration and development contract with the International Seabed Authority and becoming contractors.

　　The contractor shall, within 30 working days from the date of signing the contract, file a copy of the exploration and development contract with the marine authority under the State Council for record.

　　The marine administration authority under the State Council shall notify the transportation administration authority under the State Council of information such as the geographic location and area of exploration and development zones.

　　Article 9: The contractor shall fulfill the following obligations:

　　(1) Implement exploration and development contracts;

　　(2) Ensure the safety of persons and property;

　　(3) Protect the marine environment;

　　(4) Accept supervision and inspection by the marine administration authority under the State Council and submit materials as required;

　　(5) Other obligations stipulated by the United Nations Convention on the Law of the Sea and the International Seabed Authority.

　　Article 10: In the event of an emergency, the contractor shall immediately activate the emergency response plan and take the following measures:

　　(1) Immediately issue an alert;

　　(2) Immediately report to the marine authority under the State Council;

　　(3) Take all practicable and reasonable measures to prevent and control damage to persons, property, and the marine environment.

　　(4) Cooperate with other contractors as appropriate to respond to emergencies.

　　Article 11: Before a contractor transfers the exploration or development contract or makes significant changes to it, it shall obtain the approval of the marine authority under the State Council.

The contractor shall, within 30 working days from the date of amendment or termination of the contract, file a record with the marine authority under the State Council.

Chapter 3: Environmental Protection

　　Article 12: The contractor shall, within reasonable and feasible limits, make use of available advanced technologies and take necessary measures to prevent and control pollution and other hazards to the marine environment caused by activities in the exploration and development areas.

　　Article 13: The contractor shall, in accordance with the contract and the relevant requirements of the marine authorities under the State Council, study the marine conditions of the exploration and development areas, establish an environmental baseline, and prepare environmental impact assessment reports for exploration and development activities.

　　Article 14: The contractor shall, in accordance with the contract and the relevant requirements of the marine authorities under the State Council, formulate and implement an environmental monitoring plan to monitor the impact of exploration and development activities on the marine environment in the exploration and development areas. The contractor shall ensure that monitoring equipment operates properly and maintain original monitoring records.

Article 15: The contractor shall take necessary measures to ensure the sustainable use of marine resources, prevent damage to biodiversity, and protect and conserve the following marine resources:

　　(1) Rare or fragile ecosystems;

　　(2) Species that are depleted, threatened, or endangered;

(3) The living environment of marine organisms.

Chapter Four: Scientific and Technological Research and Resource Surveys

　　Article 16: The State supports scientific and technological research in the deep sea as well as the cultivation of specialized talent. It will prioritize deep-sea science and technology in the development of science and technology and encourage collaborative research with related industries.

　　Article 17: The State supports the construction and operation of deep-sea public platforms, promotes the establishment of a collaborative mechanism for sharing and cooperating on these platforms, and provides vessels, equipment support, and specialized services for deep-sea scientific and technological research, resource surveys, and other related activities.

　　Article 18: Natural persons, legal entities, or other organizations engaged in the exploration, development, and resource surveys of resources in the deep-sea seabed area shall submit relevant data and physical samples to the State Council’s department in charge of ocean affairs and other relevant authorities.

Article 19: The State encourages organizations and individuals to carry out deep-sea science popularization activities through various means, such as opening up scientific research vessels, laboratories, exhibition halls, and other venues and facilities, holding lectures, and providing consultations.

Chapter 5: Supervision and Inspection

　　Article 20: The marine administrative department of the State Council shall conduct supervision and inspection over the contractor’s performance of the exploration and development contract.

　　Article 21: The contractor shall regularly report to the marine authority under the State Council on the following matters pertaining to the performance of exploration and development contracts:

　　(1) Status of exploration and development activities;

　　(2) Environmental monitoring status;

　　(3) Annual investment status;

　　(4) Other matters required by the marine affairs authority under the State Council.

　　Article 22: The marine administrative department of the State Council may inspect the vessels, facilities, equipment, as well as navigation logs, records, and data used by contractors in exploration and development activities.

Article 23: The person being inspected shall cooperate with the inspection work and provide convenience for the inspection.

Chapter Six: Penalties

　　Article 24: If a contractor violates the provisions of Article 9, paragraphs 2 and 3 of this Law and causes personal injury, property damage, or harm to the marine environment, the contractor shall bear corresponding liability for compensation for the damages caused.

　　Article 25: In any of the following circumstances involving violations of the provisions of Article 7, Paragraph 1 of Article 9, Paragraph 1 of Article 11, Article 21, and Article 23 of this Law, the marine administrative department under the State Council may terminate the previously approved permit and impose a fine ranging from 50,000 to 100,000 yuan:

　　(1) The applicant has submitted false information in the materials submitted to the marine authority under the State Council, and the circumstances are serious;

　　(2) The contractor fails to perform or violates the exploration and development contract in a serious manner;

　　(3) The contractor has failed to obtain the approval of the marine authority under the State Council before transferring the contract or making significant changes to the exploration and development contract;

　　(4) The contractor fails to accept or cooperate with the supervision and inspection conducted by the marine administrative department under the State Council, and the circumstances are serious;

　　(5) Other circumstances in which continued granting of the license is inappropriate.

　　Article 26: Any of the following acts in violation of the provisions of Article 8, paragraph 3; Article 9, item 4; Article 11, paragraph 2; Article 18; Article 21; and Article 23 of this Law shall be ordered by the marine administrative authority under the State Council to make corrections and shall be subject to a fine ranging from RMB 20,000 to RMB 100,000:

　　(1) Engaging in deep-sea resource surveys, resource exploration, and development activities without submitting the relevant data or physical samples to the marine administrative department under the State Council;

　　(2) The contractor has failed to file a copy of the exploration and development contract with the marine authority under the State Council within the prescribed time limit;

　　(3) If the contractor fails to file a record with the marine authority under the State Council within the prescribed time limit when modifying or terminating the contract;

　　(4) Failing to cooperate with the supervision and inspection conducted by the marine authorities under the State Council, or failing to provide relevant materials truthfully when undergoing such supervision and inspection;

　　(5) Failing to report relevant matters as required.

　　Article 27: Any entity that, in violation of the provisions of Paragraph 2 of Article 8 of this Law, engages in exploration or development activities for resources in the deep-sea seabed area without obtaining the requisite authorization or signing an exploration and development contract shall be ordered by the marine administrative authority under the State Council to cease the illegal activity and fined between RMB 100,000 and RMB 500,000. If such activity causes damage to the marine environment, the entity shall be ordered to take remedial measures within a specified time limit and fined between RMB 500,000 and RMB 1 million. If the act constitutes a crime, criminal liability shall be pursued in accordance with the law.

Article 28: Any entity that violates the provisions of Article 9, paragraph 3, Article 10, and Chapter III of this Law and thereby causes marine environmental pollution shall be ordered by the marine administrative authority under the State Council to cease the illegal act, take remedial measures within a specified time limit, and be fined between 500,000 and 1 million yuan. If the violation constitutes a crime, criminal liability shall be pursued in accordance with the law.

Chapter VII Supplementary Provisions

　　Article 29: The meanings of the following terms as used in this Law are as follows:

　　Resource exploration refers to the search for resources on the deep-sea seabed, including estimating the composition, quantity, distribution, and economic value of these resources.

　　Exploration refers to the process of searching for resources in deep-sea seabed areas, analyzing these resources, and testing and deploying resource collection systems and equipment, processing facilities, and transportation systems. It also involves studying environmental, technical, economic, commercial, and other relevant factors that must be considered during development.

　　Development refers to the recovery and selection of resources from deep-sea seabed areas for commercial purposes, including the construction and operation of collection, processing, and transportation systems designed to support resource production and sales.

　　An environmental baseline refers to the natural environmental conditions of a particular area over a certain period of time, under circumstances where it has not been directly affected by human activities. It includes physical, chemical, biological, and geological baselines.

　　Article 30: The supervision and administration of activities referred to in Article 2, conducted by other entities under the effective control of the People's Republic of China or its natural persons, legal persons, or other organizations, shall be governed by this Law by analogy.

　　Article 31: Tax-related matters concerning resource exploration activities in the deep-sea seabed areas shall be governed by the relevant provisions of China’s tax laws and regulations.

　　Article 32: This Law shall come into force as of [Month] [Day], 2016.

Explanation of the “Draft Law of the People’s Republic of China on Exploration and Development of Resources in the Deep Seabed Area”

　　The United Nations Convention on the Law of the Sea, adopted in 1982 and entering into force in 1994 (hereinafter referred to as the “Convention”), governs the international seabed area (hereinafter referred to as the “Area”) and its resources.