Section 133p. 133

PUBLIC INTERNATIONAL LAW COMPENDIUM VOLUME I

time being the independent variable. This trend line shall

be referred to as the original trend line;

(ii) if the annual rate of increase of the original trend line is

less

than

3

per

cent, then the trend line used to

determine the quantities referred to in subparagraph (a)

shall instead be one passing through the original trend

line at the value for the first year of the relevant 15-year

period, and increasing at 3 per cent annually; provided

however that the production ceiling established for any

year of the interim period may not in any case exceed the

difference between the original trend line value for that

year

and

the original trend line value for the year

immediately prior to the commencement of the interim

period.

5. The Authority shall reserve to the Enterprise for its initial

production a quantity of 38,000 metric tonnes of nickel

from the available production ceiling calculated pursuant

to paragraph 4.

6. (a) An operator may in any year produce less than or up

to 8 per cent more than the level of annual production of

minerals

from

polymetallic

nodules

specified

in his

production

authorization,

provided

that

the

over-all

amount of production shall not exceed that specified in

the authorization. Any excess over 8 per cent and up to 20

per cent in any year, or any excess in the first and

subsequent years following two consecutive years in

which

excesses

occur, shall be negotiated with the

Authority, which may require the operator to obtain a

supplementary

production

authorization

to

cover

additional production.

(b)

Applications

for

such

supplementary

production

authorizations shall be considered by the Authority only

after all pending applications by operators who have not

yet received production authorizations have been acted

upon and due account has been taken of other likely

applicants. The Authority shall be guided by the principle

of not exceeding the total production allowed under the

production ceiling in any year of the interim period. It

shall not authorize the production under any plan of work

of a quantity in excess of 46,500 metric tonnes of nickel

per year.

7. The levels of production of other metals such as copper,

cobalt and manganese extracted from the polymetallic

nodules that are recovered pursuant to a production

authorization should not be higher than those which

would have been produced had the operator produced

the

maximum

level

of

nickel

from

those

nodules

pursuant to this article. The Authority shall establish rules,

regulations and procedures pursuant to Annex III, article

17, to implement this paragraph.

8. Rights and obligations relating to unfair economic

practices under relevant multilateral trade agreements

shall apply to the exploration for and exploitation of

minerals from the Area. In the settlement of disputes

arising under this provision, States Parties which are

Parties to such multilateral trade agreements shall have

recourse to the dispute settlement procedures of such

agreements.

9. The Authority shall have the power to limit the level of

production

of

minerals

from

the

Area,

other

than

minerals

from

polymetallic

nodules,

under

such

conditions

and

applying

such

methods

as

may be

appropriate by adopting regulations in accordance with

article 161, paragraph 8.

10. Upon the recommendation of the Council on the basis

of advice from the Economic Planning Commission, the

Assembly shall establish a system of compensation or

take other measures of economic adjustment assistance

including

cooperation

with specialized agencies and

other international organizations to assist 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. The Authority on

request shall initiate studies on the problems of those

States which are likely to be most seriously affected with

a view to minimizing their difficulties and assisting them

in their economic adjustment.

Article 152. Exercise of powers and functions by the

Authority

1. The Authority shall avoid discrimination in the exercise

of its powers and functions, including the granting of

opportunities for activities in the Area.

2.

Nevertheless,

special

consideration

for developing

States,

including

particular

consideration

for

the

land-locked and geographically disadvantaged among

them,

specifically provided for in this Part shall be

permitted.

Article 153. System of exploration and exploitation

1. Activities in the Area shall be organized, carried out and

controlled by the Authority on behalf of mankind as a

whole in accordance with this article as well as other

relevant provisions of this Part and the relevant Annexes,

and

the

rules,

regulations

and

procedures

of

the

Authority.

2. Activities in the Area shall be carried out as prescribed

in paragraph 3:

(a) by the Enterprise, and

(b) in association with the Authority by States Parties, or

state enterprises or natural or juridical persons which

possess the nationality of States Parties or are effectively

controlled by them or their nationals, when sponsored by

such States, or any group of the foregoing which meets

the requirements provided in this Part and in Annex III.

3. Activities in the Area shall be carried out in accordance

with

a

formal

written

plan

of

work

drawn

up

in

accordance with Annex III and approved by the Council

after review by the Legal and Technical Commission. In

the case of activities in the Area carried out as authorized

by the Authority by the entities specified in paragraph

2(b), the plan of work shall, in accordance with Annex III,

article 3, be in the form of a contract. Such contracts may

provide for joint arrangements in accordance with Annex

III, article 11.

4. The Authority shall exercise such control over activities

in the Area as is necessary for the purpose of securing

compliance with the relevant provisions of this Part and

the Annexes relating thereto, and the rules, regulations

and procedures of the Authority, and the plans of work

approved in accordance with paragraph 3. States Parties

shall assist the Authority by taking all measures necessary

to ensure such compliance in accordance with article 139.

5. The Authority shall have the right to take at any time

any measures provided for under this Part to ensure

compliance with its provisions and the exercise of the

functions

of

control

and

regulation

assigned

to

it

thereunder or under any contract. The Authority shall

have the right to inspect all installations in the Area used

in connection with activities in the Area.

6. A contract under paragraph 3 shall provide for security

of tenure. Accordingly, the contract shall not be revised,

suspended or terminated except in accordance with

Annex III, articles 18 and 19.

Article 154. Periodic review

Every

five

years

from

the

entry

into

force

of

this

Convention, the Assembly shall undertake a general and

systematic

review

of

the

manner

in

which

the

international

regime of the Area established in this

Convention has operated in practice. In the light of this

review the Assembly may take, or recommend that other

organs take, measures in accordance with the provisions

and procedures of this Part and the Annexes relating

thereto

which will lead to the improvement of the

operation of the regime.

Article 155. The Review Conference

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