King-Hinds Introduces PACMESA to Strengthen Territorial Benefits and Protections from Seabed Mining

Washington, D.C. - Today, Congresswoman Kimberlyn King-Hinds introduced H.R. 10318, the Pacific Minerals Economic Security Act (PACMESA), legislation that would strengthen economic benefits, environmental protections, and local consultation requirements for U.S. Pacific territories located near potential seabed mining activities.

The legislation would establish significant revenue sharing for U.S. offshore natural resource development, directing 50% of revenues from covered leases to eligible adjacent territorial governments. The bill would also strengthen financial assurance and environmental bonding requirements beyond those currently provided under federal law and regulation, while expanding notification and consultation requirements for territorial governments.

"Critical minerals are at the center of America's economic competitiveness and national security," said Congresswoman King-Hinds. "While I do not support or oppose seabed mining, we must recognize the nation's strategic imperative to develop secure critical mineral supply chains. If seabed mining offshore our communities occurs, PACMESA would provide a crucial insurance policy for the Pacific territories that could be directly affected."

"This bill addresses some of the most serious gaps in existing law and regulation governing hard mineral development on the Outer Continental Shelf," King-Hinds continued. "It would establish unprecedented levels of local revenue sharing for natural resource development, require meaningful financial assurance to ensure companies can meet their environmental and lease obligations, and provide greater notification and consultation for adjacent Pacific territorial governments. I urge my colleagues to support this legislation and move it forward as soon as possible."

The Pacific Minerals Economic Security Act (H.R. 10318) Would:

Establish a 50/50 Revenue-Sharing Framework

• Require revenues from leases subject to the Act to be divided equally, with 50% going to the U.S. Treasury and 50% distributed to covered territories - the Commonwealth of the Northern Mariana Islands, Guam, and American Samoa - located within 200 nautical miles of the center of the lease tract.
• If the center of a lease tract is located within 200 nautical miles of two covered territories, each territory's share would be calculated inversely proportional to its distance from the lease.
• Establish a 10% minimum share of the territorial allocation for any covered territory located within 200 nautical miles of the lease.
• Allow territorial revenues to be used for coastal restoration, infrastructure development including energy infrastructure, environmental mitigation, fiscal stabilization, and debt reduction.

Protect Territorial Revenues

• Prohibit the Secretary of the Interior from granting a lessee an exemption from paying royalties for leases covered by the Act.

Strengthen Environmental Financial Assurances

• Require lessees to furnish a $100,000 base bond at the time of lease sale to cover obligations under the lease.
• Require lessees to furnish a supplemental bond before production begins, with the amount determined based on factors including:
  • The financial health of the lessee;
  • The lessee's financial ability to meet its obligations under the lease;
  • The estimated cost of decommissioning; and
  • The estimated cost of environmental restoration of the area subject to the lease.
• Require the Secretary of the Interior to conduct a study examining methods to mitigate the environmental impacts of seabed mining and the potential costs of those mitigation measures.
• Require the Secretary to make a reasonable effort to consult with local institutions of higher education in conducting the study, providing opportunities for local students to gain experience and expertise in this emerging field.

Expand Notification and Consultation with Pacific Territories

• Expand notification requirements for adjacent territorial governors.
• Require the appropriate federal agencies, including the Department of the Interior, to notify adjacent territorial governors when an application for a prospecting, testing, delineation, or production permit triggers a Coastal Zone Management Act (CZMA) consistency review.
• Codify a notification and comment period for territorial governors when an Environmental Assessment is required for such permit applications.