1340-(236)

II SÉRIE-A — NUMERO 69

entry into force of the Convention, or its successor in interest, shall be considered to have met the financial and technical qualifications necessary for approval of a plan of work if the sponsoring State or States certify that the applicant has expended an amount equivalent to at least US$ 30 million in research and exploration activities and has expended no less than 10 per cent if that amount in the location, survey and evaluation of the area referred to in the plan of work. If the plan of work otherwise satisfies the requirements of the Convention and any rules, regulations and procedures adopted pursuant thereto, it shall be approved by the Council in the form of a contract. The provisions of section 3, paragraph 11, of this annex shall be interpreted and applied accordingly;

ii) Notwithstanding the provisions of Resolution II, paragraph 8, a), a registered pioneer investor may request approval of a plan of work for exploration within 36 months of the entry into force of the Convention. The plan of work for exploration shall consist of documents, reports and other data submitted to the Preparatory Commission both before and after registration and shall be accompanied by a certificate of compliance, consisting of a factual report describing the status of fulfilment of obligations under the pioneer investor regime, issued by the Preparatory Commission in accordance with Resolution II, paragraph 11, a). Such a plan of work shall be considered to be approved. Such an approved plan of work shall be in the form of a contract concluded between the Authority and the registered pioneer investor in accordance with part xi and this Agreement. The fee of US$ 250,000 paid pursuant to Resolution II, paragraph 7, a), shall be deemed to be the fee relating to the exploration phase pursuant to section 8, paragraph 3, of this annex. Section 3, paragraph 11, of this annex shall be interpreted and applied accordingly;

Hi) In accordance with the principle of non-discrimination, a contract with a State or entity or any component of such entity referred to in subparagraph a), i), shall include arrangements which shall be similar to and no less favourable than those agreed with any registered pioneer investor referred to in subparagraph a), ii). If any of the States or entities or any components of such entities referred to in subparagraph a), i), are granted more favourable arrangements, the Council shall make similar and no less favourable arrangements with regard to the rights and obligations assumed by the registered pioneer investors referred to in subparagraph a), ii), provided that such arrangements do not affect or prejudice the interests of the Authority;

/V) A State sponsoring an application for a plan of work pursuant to the provisions of subparagraph a), i) or ii), may be a State Party or a State which is applying this Agreement provisionally in accordance with article 7, or a State which is a member of the Authority on a provisional basis in accordance with paragraph 12; v) Resolution II, paragraph 8, c), shall be interpreted and applied in accordance with subparagraph a), iv).

b) The approval of a plan of work for exploration shall be in accordance with article 153, paragraph 3, of the Convention.

7 — An application for approval of a plan of work shall be accompanied by an assessment of the potential environmental impacts of the proposed activities and by a description of a programme for oceanographic and baseline environmental studies in accordance with the rules, regulations and procedures adopted by the Authority.

8 — An application for approval of a plan of work for exploration, subject to paragraph 6, a), i) or ii), shall be processed in accordance with the procedures set out in section 3, paragraph 11, of this annex.

9 — A plan of work for exploration shall be approved for a period of 15 years. Upon the expiration of a plan of work for exploration, the contractor shall apply for a plan of work for exploitation unless the contractor has already done so or has obtained an extension for the plan of work for exploration. Contractors may apply for such extensions for periods of not more than five years each. Such extensions shall be approved of the contractor has made efforts in good faith to comply with the requirements of the plan of work but for reasons beyond the contractor's control has been unable to complete the necessary preparatory work for proceeding to the exploitation stage or if the prevailing economic circumstances do not justify proceeding to the exploitation stage.

10 — Designation of a reserved area for the Authority in accordance with annex in, article 8, of the Convention shall take place in connection with approval of an application for a plan of work for exploration or approval of an application for a plan of work for exploration and exploitation.

11 — Notwithstanding the provisions of paragraph 9, an approved plan of work for exploration which is sponsored by at least one State provionally applying this, Agreement shall terminate if such a State ceases to apply this Agreement provisionally and has not become a member on a provisional basis in accordance with paragraph 12 or has not become a State Party.

12 — Upon the entry into force of this Agreement, States and entities referred to in article 3 of this Agreement which have been applying it provisionally in accordance with article 7 and for which it is not in force may continue to be members of the Authority on a provisional basis pending its entry into force for such States and entities, in accordance with the following subparagraphs:

a) If this Agreement enters into force before 16 November 1996, such States and entities sha\\ be entitled to continue to participate as members of the Authority on a provisional basis upon notification to the depositary of the Agreement by such a State or entity of its intention to participate as a member on a provisional basis. Such membership shall terminate either on 16 November 1996 or upon the entry into force of this Agreement and the Convention for such member, whichever is earlier. The Council may, upon the request of the State or entity concerned, extend such membership beyond 16 November 1996 for a further period or periods not exceeding a total of two years provided that the Council is satisfied that the State or entity