1 DE AGOSTO DE 1997

1340-(217)

Commission on Transnational Corporations of the United Nations, the Group of Experts on Tax Treaties between Developing and Developed Countries and other international organizations, and shall, in its rules, regulations and procedures, specify uniform and internationally acceptable, accounting rules and procedures, and the means of selection by the contractor of certified independent accountants acceptable to the Authority for the purpose of carrying out auditing in compliance with those rules, regulations and procedures.

10 — The contractor shall make available to the accountants, in accordance with the financial rules, regulations and'procedures of the Authority, such financial data as are required to determine compliance with this article.

11 — All costs, expenditures, proceeds and revenues, and all prices and values referred to in this article, shall be determined in accordance with generally recognized accounting principles and the financial rules, regulations and procedures of the Authority.

12 — Payments to the Authority under paragraphs 5 and 6 shall be made in freely usable currencies or currencies which are freely available and effectively usable on the major foreign exchange markets or, at the contractor's option, in the equivalents of processed metals at market value. The market value shall be determined in accordance with paragraph 5, b). The freely usable currencies and currencies which are freely availabe and effectively usable on the major foreign exchange markets shall be defined in the rules, regulations and procedures of the Authority in accordance with prevailing international monetary practice.

13 — All financial obligations of the contractor to the Authority, as well as all his fees, costs, expenditures, proceeds and revenues referred to in this article, shall be adjusted by expressing them in constant terms relative to a base year.

14 — The Authority may, taking into account any recommendations of the Economic Planning Commission and the Legal and Technical Commission, adopt rules, regulations and procedures that provide for incentives, on a uniform and non-discriminatory basis, to contractors to further the objectives set out in paragraph 1.

15 — In the event of a dispute between the Authority and a contractor over the interpretation or application of the financial terms of a contract, either party may submit the dispute to binding commercial arbitration, unless both parties agree to settle the dispute by other means, in accordance with article 188, paragraph 2.

Article 14 Transfer of data

1 — The operator shall transfer to the Authority, in accordance with its rules, regulations and procedures and the terms and conditions of the plan of work, at time intervals determined by the Authority all data which are both necessary for and relevant to the effective exercise of the powers and functions of the principal organs of the Authority in respect of the area covered by the plan of work.

2 — Transferred data in respect of the area covered by the plan of work, deemed proprietary, may only be used for the purposes set forth in this article. Data necessary for the formulation by the Authority of rules, regulations and procedures concerning protection of the marine environment and safety, other than equipment design data, shall not be deemed proprietary.

3 — Data transferred to the Authority by prospectors, applicants for contracts or contractors, deemed proprietary, shall not be disclosed by the Authority to the Enterprise or to anyone external to the Authority, but data on the reserved areas may be disclosed to the Enterprise. Such data transferred by such persons to the Enterprise shall not be disclosed by the Enterprise to the Authority or to anyone external to the Authority.

Article 15

Training programmes

The contractor shall draw up practical programmes for the training of personnel of the Authority and developing States, including the participation of such personnel in all activities in the area which are covered by the contract, in accordance with article 144, paragraph 2.

Article 16 Exclusive right to explore and exploit

The Authority shall, pursuant to part xi and its rules, regulations and procedures, accord the operator the exclusive right to explore and exploit the area covered by the plan of work in respect of a specified category of resources and shall ensure that no other entity operates in the same area for a different category of resources in a manner which might interfere with the operations of the operator. The operator shall have security of tenure in accordance with article 153, paragraph 6.

Article 17

Rules, regulations and procedures of the Authority

1 — The Authority shall adopt and uniformly apply rules, regulations and procedures in accordance with article 160, paragraph 2, /), ii); and article 162, paragraph 2, o), ii), for the exercise of its functions as set forth in part xi on, inter alia, the following matters:

a) Administrative procedures relating to prospecting, exploration and exploitation in the Area;

b) Operations:

/) Size of area;

ii) Duration of operations;

Hi) Performance requirements including assurances, pursuant to article 4, paragraph 6, c), of this annex;

iv) Categories of resources;

v) Renunciation of areas;

vi) Progress reports; vii\ Submission of data;

viii) Inspection and supervision of operations; be) Prevention of interference with other

activities in the marine environment; jc) Transfer of rights and obligations by a contractor;

xi) Procedures for transfer of technology to developing States in accordance with article 144 and for their direct participation;

xii) Mining standards and pratices, including those relating to operational safety, conservation of the resources and the protection of the marine environment;

xiii) Definition of commercial production;

xiv) Qualification standards for applicants;