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© McInnes Cooper, 2016

UNCLOS Article 82: A Review and the Hurdles to Implementation

Wylie Spicer QC

June 27, 2016

Legal Order in the World’s Oceans: UN Convention on the Law of the Sea 40th Annual Conference of the Center for Oceans Law & Policy

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The Continental Shelf Historically

1958 Geneva Continental Shelf

Convention

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The Continental Shelf

1958 Geneva Continental Shelf

Convention UNCLOS Package

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The Continental Shelf

1958 Geneva Continental Shelf

Convention

UNCLOS Package

Art. 76-82

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Art. 82 Application

Outer Continental Shelf

Presenter
Presentation Notes

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Art. 82 Potential Application

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• Annual payment or contribution in-kind via Authority

• Commence in 6th year of production @ 1% & rise each year until 7%

• Based on all production except that consumed in the operation

• Calculated on value or volume • Gross royalty

Payment Obligation

Coastal State

Contribution of Payments or In-

Kind

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• Domestic legislation as tool to resolve textual ambiguity of terms (ISA Study 15)

• Limitations – Tax regimes (Norway,

UK)

– Incompatible legislation (e.g. Brazil, resources used for operations)

“Collection” Issues

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Domestic legislation (Art. 82 Compatible)

UNCLOS State Parties

• Minimally treated, marketable condition “resource”

• Exclusion of reasonable losses, reinjected gas, production uses

“All Production/ Volume”

• Market value; Transportation & Processing allowance “Value”

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• State Parties • “Equitable sharing

criteria” • Interests & needs of

developing States, particularly least developed & landlocked States

Entitlement to Funds

UNCLOS State Parties

Distribution to Convention State

Parties

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“Distribution” Issues

UNCLOS State Parties

Distribution to Convention

State Parties

Common Heritage of Mankind?

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ISA-State Disputes

• Art. 187 Criteria

Excess Jurisdiction Alleged State – Authority Dispute Part XI Activity in the Area

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Questions?

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Legal Notes

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