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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 40 th Annual Conference of the Center for Oceans Law & Policy

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Page 1: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© 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

Page 2: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

The Continental Shelf Historically

1958 Geneva Continental Shelf

Convention

Page 3: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

The Continental Shelf

1958 Geneva Continental Shelf

Convention UNCLOS Package

Page 4: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

The Continental Shelf

1958 Geneva Continental Shelf

Convention

UNCLOS Package

Art. 76-82

Page 5: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

Art. 82 Application

Outer Continental Shelf

Presenter
Presentation Notes
Page 7: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

Art. 82 Potential Application

Page 10: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

• 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

Page 11: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

• 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

Page 12: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

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”

Page 13: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

• 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

Page 14: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

“Distribution” Issues

UNCLOS State Parties

Distribution to Convention

State Parties

Common Heritage of Mankind?

Page 17: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

ISA-State Disputes

• Art. 187 Criteria

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

Page 19: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

Questions?

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Presenter
Presentation Notes
CALL FOR QUESTIONS + REFER TO THE SUBSCRIPTION REQUIREMENT FOR AREAS OF INTEREST AS REQUIRED TO COMPLY WITH ANTI-SPAM LEGISLATION (CASL)
Page 20: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016

McInnes Cooper has prepared this document for information only; it is not intended to be legal advice. You should consult McInnes Cooper about your unique circumstances before acting on this information. McInnes Cooper excludes all liability for anything contained in this document and any use you make of it.

© McInnes Cooper, 2016. All rights reserved. McInnes Cooper owns the copyright in this document. You may reproduce and distribute this document in its entirety as long as you do not alter the form or the content and you give McInnes Cooper credit for it. You must obtain McInnes Cooper’s consent for any other form of reproduction or distribution. Email us at [email protected] to request our consent.

Legal Notes

Page 21: UNCLOS Article 82: A Review and the Hurdles to Implementation › sites › colp.virginia.edu › ... · UNCLOS Article 82: A Review and the Hurdles to Implementation . Wylie Spicer

© McInnes Cooper, 2016