0145 Supporting Statement 060408 rev

SUPPORTING STATEMENT
DEEP SEABED MINING EXPLORATION LICENSES
OMB CONTROL NO. 0648-0145

A. JUSTIFICATION
1. Explain the circumstances that make the collection of information necessary.
The Deep Seabed Hard Mineral Resources Act (Act) (P.L. 96-283) and its implementing
regulations (15 CFR Part 970) authorize the Administrator of NOAA to issue, to eligible
United States citizens, licenses for exploration of deep seabed hard mineral resources
beyond the continental shelf. The statutory requirements for the collection of information
are contained in sections 102,105, 113, and 114 of the Act.
The Act and NOAA’s regulations require applicants for issuance or transfer of an
exploration license to submit financial, technical and environmental information so that
NOAA is able to make a determination as to the applicant’s eligibility to meet the
provisions of the legislation. The legislation also requires a licensee to annually submit a
report which describes its exploration activities for the past year and its diligence in
following its approved exploration plan.
2. Explain how, by whom, how frequently and for what purpose the information
will be used.
The information with the application for a license or transfer of a license will be used by
NOAA to determine the financial and technological eligibility of the applicant to meet
the requirements of the Act to conduct exploration activities in an environmentally sound
manner. The information will also be used in the preparation of the environmental
impact statement required by the Act and the National Environmental Policy Act.
The specific requirements in the regulation for a license application, and the provision in
the law that requires such information are:
§970.201 – Statement of financial resources. The application must contain information
upon which to base a determination that the applicant will have sufficient resources to
carry out the exploration plan. The information must include: (1) a description of how
the applicant intends to finance the exploration program; (2) the estimated cost of the
program; (3) the applicant’s most recent audited financial statement, annual report, Form
10-K filed with the Securities and Exchange Commission, and the credit and bond rating
of the applicant. [30 U.S.C. 1413C)]
§970.202 – Statement of technological experience and capabilities. The application must
demonstrate that the applicant has the technological capability to carry out the
exploration plan. The information must include a description of the exploration and

monitoring equipment to be used and a description of the experience upon which the
application will rely in using the equipment. [30 U.S.C. 14138)]
§970.203 – Exploration plan. Each application must include an exploration plan that
describes the projected exploration activities during the license period. The plan must
demonstrate that the efforts are likely to lead to the ability to apply for a commercial
recovery permit at the end of the license period. The plan must include the following
information: (1) the proposed activities to be carried out; (2) a description of the area to
be explored; (3) the intended exploration schedule; (4) a description of the methods to be
used; (5) a description of the technology to be used and an evaluation of the technology;
(6) an estimated schedule of expenditures; (7) measures to protect the environment and
monitor the effectiveness of environmental safeguards; and (8) a description of the
relevant activity completed prior to the submission of the application. {30. U.S.C.
14138)]
§970.204 – Environmental and use conflict analysis. The applicant must furnish
information on physical, chemical, biological, and potential use conflict on the
exploration area. The information is used in preparing NOAA’s environmental impact
statement. [30 U.S.C. 14413(a,) 1415(a)]
§970.205 – Vessel safety. The application must contain an affirmation that any U.S. flag
vessel used in the exploration activities will possess a currently valid Coast Guard
Certificate of Inspection. If a foreign flag vessel is to be used, applicable safety
certificates must be obtained (SOLAS 60: International Convention for the Safety of Life
at Sea, 1960 and SOLAS 74: International Convention for Safety of Life at Sea, 1974).
[30 U.S.C. 1422)]
§970.206 – Statement of ownership. The application must include information to
demonstrate that the applicant is a U.S. citizen. The information includes: the name,
address, and telephone number of the U.S. citizen responsible for exploration operations;
a description of the citizen engaging in the exploration (whether the citizen is an actual
person, partnership, corporation, etc.); state of incorporation; name of registered agent
and place of business; certificate of incorporation or articles of association; and the name
of each member of an association. [30 U.S.C. 1412(b)]
§970.207 – Antitrust information. The application must contain sufficient information
for an antitrust review by the Attorney General and the Federal Trade Commission. This
may include: a copy of each agreement between participating parties; identity of any
affiliate; for any affiliate, the parent or subsidiary engaged in related production,
purchase, or sale; annual tonnage and dollar value of minerals and metals purchased,
sold, or produced for the two preceding years; copies of annual reports; and copies of
documents submitted to the Securities and Exchange Commission. [30 U.S.C. 1413(d)]

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§970.208 – Fee. A fee payment of $100,000 must accompany each application to cover
NOAA’s administrative costs for reviewing and processing the application [30 U.S.C
1414]
The information submitted with a request for a revision or extension of an exploration
license or exploration plan will be used by NOAA to prepare a written finding that the
revision or extension will comply with the requirements of the Act and regulations.
The information submitted with an application for an issuance, transfer, extension or
revision of a license is also used by NOAA to fulfill its function under the Act for
consultation and cooperation with other Federal agencies in relation to their programs and
authorities, in order to reduce the number of separate actions required to satisfy Federal
agencies’ responsibilities.
The information submitted in the annual report is used by NOAA to ensure that the
licensee is diligent in following its approved exploration plan and to prepare a Biennial
Report to Congress (the requirement for NOAA to submit the Biennial Report to
Congress has been suspended because of the present low level of activity under the two
NOAA-issued licenses.)
The specific information that may be required after issuance of the license is:
§970.510 – Objections to terms, conditions, and restrictions (TCRs). The licensee may
file a notice of objection to any TCR within 60 days after a notice of issuance or transfer
of a license. Any notice of objection must indicate the legal or factual basis for the
objection and must provide information relevant to any underlying factual issues deemed
by the licensee as necessary to NOAA’s decision on the objection. [30 U.S.C.
1415(b)(3)]
§970.513 – Revision of a license. During the term of the license the licensee may submit
an application for a revision of either the license or the exploration plan associated with it
[30 U.S.C. 1415(c)(2)]
§970.516 – Approval of license transfers. A licensee may submit a request for a license
transfer. The proposed transferee will be deemed an applicant for a license and will be
subject to the requirements and procedures of an original license application. [30 U.S.C.
1413(a)]
§970.522 – Monitoring requirements. Each exploration license requires the licensee to
monitor the environmental effects of its activities in accordance with NOAA’s guidelines
and to submit data and other information as necessary to permit evaluation of the
environmental effects. [30 U.S.C. 1424]
Some of NOAA’s information requirements are consolidated with NOAA’s regulations
for commercial recovery in 15 CFR 971.

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§971.801 – Records to be maintained and information to be submitted by licensees. In
addition to the other information specified, the licensee must keep such records,
consistent with standard accounting principles, as NOAA may specify for each license.
Such records must include information which will fully disclose expenditures for
exploration for, or commercial recovery of, hard mineral resources in the area under
license or permit, and any other information which will facilitate an effective audit of
these expenditures. The licensee will be required to submit to the Administrator, upon
request, data or other information the Administrator may reasonably need for purposes
of: (1) making determinations with respect to the issuance, revocation, modification, or
suspension of the license or permit in question; (2) evaluating the effectiveness of license
or permit TCRs; (3) compliance with the biennial Congressional report requirements
contained in section 309 of the Act; and (4) evaluation of the exploration or commercial
recovery activities conducted by the licensee.
At a minimum, licensees must submit an annual written report within 90 days after each
anniversary of the license issuance or transfer, discussing exploration or commercial
recovery activities and expenditures. The report must address diligence requirements of
970.602 and environmental monitoring to address 970.5228) and 970.702(a). [30 U.S.C.
1423, 1418]
§971.802- Request for confidential treatment of documents received by NOAA. A
licensee requesting confidential treatment of information considered to be protected
under the Trade Secrets Act (18 U.S.C. 1905) or of financial information that is
privileged or confidential must submit a written request at the time the information is
submitted. Request must state the period of time for which confidential treatment is
requested, and must include the name, mailing address, and telephone number of agent of
the submitter who is authorized to receive notice of requests for disclosure of the
information. [30 U.S.C. 1423]
As explained in the preceding paragraphs, the information gathered has utility. NOAA
will retain control over the information and safeguard it from improper access,
modification, and destruction consistent with NOAA standards for confidentiality,
privacy, and electronic information. See response #10 of this Supporting Statement for
more information on confidentiality and privacy. The information collection is designed
to yield data that meet all applicable information quality guidelines. Prior to
dissemination, the information will be subjected to quality control measures and predissemination review pursuant to Section 515 of Public Law 106-554.
3. Describe whether, and to what extent, the collection of information involves the
use of automated, electronic, mechanical, or other technological techniques or other
forms of information technology.
The collection of information to support deep seabed mining exploration licenses could
include applying Geographic Information Systems (GIS) data to identify areas where
hard mineral resources are likely to exist or be explored, as well as using this technology
to consider potential impacts to surrounding resources. In addition, applicants are

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encouraged to submit those application materials that are readily available in electronic
form for NOAA review. Other than those examples, the collection of information does
not involve the use of automated, electronic, mechanical, or other technological
techniques or other forms of information technology.
4. Describe efforts to identify duplication.
There are no other collections gathering the same information. All information is
required by the Act to be submitted by the license applicant or license holder to NOAA
only.
5. If the collection of information involves small business or other small entities,
describe the methods used to minimize burden.
Information collection does not involve small businesses or other small entities.
6. Describe the consequences to the Federal program or policy activities if the
collection is not conducted or is conducted less frequently.
The Act requires that an application for issuance, extension, revision or transfer of a
license contain adequate financial, technical and environmental information in order for
NOAA to make a determination as to the applicant’s eligibility for these actions and to
conduct exploration activities. Fulfilling NOAA’s responsibility under the Act is
impossible without the timely submission of adequate information.
If a licensee does not submit an annual report which describes exploration activities, it is
in violation of the Act and may have its license suspended.
7. Explain any special circumstances that require the collection to be conducted in a
manner inconsistent with OMB guidelines.
Section 970.200 of the regulations requires 30 copies of an application for issuance or
transfer of a license to be submitted to NOAA. Consultations are required with a number
of other agencies, and the number of copies aid in the application’s timely review. If an
applicant finds this too burdensome, the regulations provide for a waiver of the number
of copies. Since no applications have been received in several years, it is currently a
moot point.

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8. Provide information on the PRA Federal Register Notice that solicited public
comments on the information collection prior to this submission. Summarize the
public comments received in response to that notice and describe the actions taken
by the agency in response to those comments. Describe the efforts to consult with
persons outside the agency to obtain their views on the availability of data,
frequency of collection, the clarity of instructions and record keeping, disclosure, or
reporting format (if any), and on the data elements to be recorded, disclosed, or
reported.
A Federal Register Notice published on March 10, 2008 (73 FR 12706) solicited
comments. No comments were received.
9. Explain any decisions to provide payments or gifts to respondents, other than
remuneration of contractors or grantees.
No payment or gifts are provided.
10. Describe any assurance of confidentiality provided to respondents and the basis
for assurance in statute, regulation, or agency policy.
Section 970.902 of the regulations provides a procedure for requesting confidential
treatment for any information that the applicant considers to be: 1) protected by the Trade
Secrets Act or 2) a trade secret or commercial or financial information which is
privileged or confidential. Other than this option, confidentiality is not assured.
11. Provide additional justification for any questions of a sensitive nature, such as
sexual behavior and attitudes, religious beliefs, and other matters that are
commonly considered private.
There is no information required in an application for issuance, transfer, revision or
extension of a license, or for annual reporting, that is of a sensitive nature as described
above.
12. Provide an estimate in hours of the burden of the collection of information.
An application could take from 2,000 – 4,000 hours, depending on the complexity of the
request. This estimate is based on the fact that much of the information required would
otherwise be needed by the applicant anyway for management purposes and to obtain
funding. NOAA has not received any applications for several years and expects no new
applications in the PRA approval period being requested. However, NOAA’s Office of
Ocean and Coastal Resource Management will be working with a licensee on extending
two existing permits during the PRA approval period being requested.

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The annual reports are estimated to take 20 hours per response. Again, much of the data
would be required for business purposes. There is one existing licensee with two
licenses, so the requested burden for annual reports is:
1 licensee x 20 hours x 2 annual reports = 40 hours.
The amount of additional information required for extension of a permit is minimal,
given that NOAA has most of the necessary information already on file. The requested
burden for two extension requests is:
1 licensee x 30 hours per extension request (2 extension requests during the threeyear period) = 60 hours, annualized to 20.
Total estimated annualized responses would be 2 + 2/3 = 2.67 (3) and the burden, 40 + 20
= 60.
At an estimated labor cost of $50 per hour, annualized labor costs would be $3,000.
13. Provide an estimate of the total annual cost burden to the respondents or
record-keepers resulting from the collection.
The cost of an application would be the $100,000 fee; however, since no applications are
expected the anticipated application cost is $0. Copying and mailing costs for each
annual reporting and extension document are estimated to be $100. Since no at-sea
exploration activities are anticipated, there will be no costs for environmental monitoring
of deep seabed mining exploration activities. Thus, the total annualized costs are
estimated to be $200 + $200/3 = $267.
14. Provide estimates of annualized cost to the Federal government.
There is an estimated cost of $200/year for reviewing each annual report: $400, and
$1,500 for review of each permit extension: $3,000 (annualized to $1,000), for an
annualized cost of all activities of $1,400.
15. Explain the reasons for any program changes or adjustments reported in Items
13 or 14 of the OMB 83-I.
.NOAA has identified permit extension activities that will require additional information
to be collected by the one licensee. Time spent on these activities is estimated at 60
hours of staff time collecting information for two permit extensions (30 hours per
permit), annualized to 20 hours, with an accompanying $67 annualized increase in costs
(note: since the cost was rounded down when the IC was migrated to ROCIS, it appears
there is an increase of $267, rather than of $67).

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16. For collections whose results will be published, outline the plans for tabulation
and publication.
No collection information will be published.

17. If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons why display would be inappropriate.
Not applicable.
18. Explain each exception to the certification statement identified in Item 19 of the
OMB 83-1.
Not applicable.
B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL
METHODS
The collection does not employ statistical methods.

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