Submerged Lands Act of 1988 (P.L. 6-13)

0 Jlqon,: 234·6407 /6408/55 Q" lM.,:ic: 783-622 CJ1111. N£Ul D 3 NOV 1988 !) Gov:· COMM:~- (a-oq

0 (HOlJSE} . 0 ... The Honorable Pedro R. Guerrero <>Speaker, House of Representatives J,ixth Northern Marianas ...;,,? vomrCommonwealth Legislature (> r:s' Saipan, MP 96950 I) ard The Honorable Benjamin T. Manglona Senate President Sixth Northern Marianas Commonwealth Legislature Saipan, MP 96950 Dear Mr. Speaker and Mr. Presldent: This is to inform you that I have signed into law Senate 8111 No. 6-42, C.S.1, H.D.1, C.C.0.1, entitled, "To amend Chapter 2 of Dlvislon 1 of Title 2 of the Commonwealth Code in its entirety; to extend the authority of the Department of Natural Resoutces over submerged lands so as to allow for licenses and development leases for water and non• water dependent uses of submerged lands in the Northern Mariana Islands; to provide for approval of such leases by the Legislature and to require a public hearing on such lease prior to granting said approval; to prohibit granting of a freehold interest to .a private developer; to restrict the terms and conditions of leases of submerged lands; and for other purposes," which was passed by the Sixth Northern Marianas Commonwealth Legislature. In reviewing this bill, i t was noted that the remedies and penalties contained in 2 CMC, Section 1231 were Inadvertently repealed. For this reason, I would respectfully request that the Legislature reinstate these provisions by amending this public :law, This bill becomes Public Law No. 6-13. Copies bearing my signature are forwarded for your ready reference. Sincerely, CC: Special Assistant for Programs and Legislative Review '.'• .....•· PUBLIC !AW NO. 6-13 s.a. NO, 6-42, comm, subs't, 1, H,D.l., ·c.c.o.l ·sIXTH NORTHERN MARIANAS CCMMONWEALTH .. . . LEX3ISLATURE . . . SECOND REGULAR SESSION, 1988 AN ACT TO amend chapter 2 of Division 1 of Title 2 of the commonwealth code i n its entirety; t o extend the authority of the Department of Natural Resources over submerged lands so as t o allow for licenses and development leases for water and non-water dependent uses of submerged lands i n the Northern Mariana Islands r ·to provide for approval of such leases by the Legislature and t o require a p u b l i c hearing on such lease prior t o granting s a i d approval; t o prohibit granting of a freehold, interest t o a private developer; t o r e s t r i c t the terms and conditions of leases of submerged lands; and for other purposes. Offered by Senators Manuel P. Villagomez; Benjamin,T~ Manglona, ---;rr _____ Herman M. Manglona,----l,J:,.::::O:.:::.Se::::.......:P...J.i_ _ Mafnas, ___ Juan_N ._gBa~ba~U~ta::i.,L----....J2..&.S, Joseph Inos and Paul A , Manglona , , Date: February 9 , 1988 SENATE ACTION Referred to: Committee on Resources, Economic oevelopnent & Programs·. Standing committee Report No, 6-52 , Second and Final Reading: June 17, l98S Accepted Ccnference convnittee Report No. 6-3:. September . 21, 1988 HOUSE ACTION Referred to: Committee on Natural Resources Standing Convni ttee Report No. 6-26 ., . ,. Second and Final Reading: August 5, 1988 .•, ,. Accepted Conference Committee Report No. 6-3: September 23, 1 9 8 8 , , . Senate Legislative Secretary . ,- > . I . ' . , PUBLic UM NO. 6-13 SIX'IH NORTHERN MARIANAS COMMONWEA,LTH LEGISLATURE .SENATE 'BILL NO·.' 6-42, •, CCW1. SUBST.' 1,:H.D,1, c.c.D.l FIRST REGULAR SESSION, 1988 , . AN 'ACT To amend Chapter 2 of Division 1 of Title 2 of the commonwealth Code i n its entirety; t o extend the authority of t h e papartrnent of Natural Resources over' submerged lands so as t o allow 'for licenses and developnent leases for water and non-water: a~pend~nt uses of submerged lands i n 'the Northern ·Mariana I s l a n d s ; ' t o provide for approval of such leases ,by ·.the Legislature and t o require a public hearing :on such, lease, ·pJ;"ior t o granting s a i d approval; t o prohibit granting of a f.r.e~~old i n t e r e s t t o a private developer; t o r e s t r i c t the .terms and-conditions of leases of submrged l a n d s ; and for other' purp:,se·s: :. , BE I T ENACTED BY THE NORTHERN MARIANAS COMMONWEALTH LEGISLATURE:

1 Section 1. F i n d i n g s . The Legislature finds t h a t , pursuant t o

2 Section 2 of Article X I of the·constttution, t h e Legislature has t o date reserved t o itself. the power t o grant licenses, permits or 4 developent leases over submerged l a n d s i n the commonwealth of the 5. Northern Mariana Islands, This Act s h a l l extend the authority of the

6 Department of Natural Resources over. a l l submerged lands i n the

7 Northern Mariana Islands so a s t o allow licenses or, leases for public, 8' private or commercial hotel and marina. developnent· and other water and 9 non-water dependent uses a s defined by t h i s Act and t o grant exploration 10 and extraction rights for petroleum deposits or other mineral deposits,

11 The Legislature further f i n d s that ccmrronwealth-ownea submerged 12 lands a r e a f i n i t e natural resource of great value and an irreplaceable 13 public heritage, The Legislature recognizes t h a t the people o f the

14 Commonwealth owns these submerged lands outright, which is held in trust 15 for the public by the ccmrrorwealth government, and has delegated t o the • . • ,j,' ,,.,~· '. ....... ·:t· . . ·.' ,, PUBLIC LAW NO. 6-13 senate B i l l NO, 6-42, Corron, Subst-. i, ~.D.l, C,C.'D.l ,; . h l Department of Natural Resources the responsibli ty t o manage these 2 lands for the benefit of the public. The Legislature finds that water 3 dependent industries and a c t i v i t i e s have played ,a major r,ole i n the , 4 history of the C m n w e a l t h and w i l l continue t o be important i n the 5 future. The Legislature f i n d s that revenues derived from the leases 6 of ccmrronwealth-owned submerged l a n d s should be used t o enhance 7 opportunities for public recreation, shoreline access, environmental 8 protection, and other benefits associated w i t h the submerged lands of 9 the Commonwealth. The Legislature further f i n d s that submerged lands , 10 are faced w i t h conflicting use demands. The purpose of t h i s Act is 11 t o a r t i c u l a t e a management, philosophy., t o guide the exercise of the . : ·: . . ·-·:· \;. :"_:::t:r .. ,, .

12 Ccmrronwealth's ownership i n t e r e s t 'and t h e exercise. of 'the, Department '. , . -Xl - ~ 13 of Natural Resouces managemen~ .authority.· 14 !1 The Legislature recognizes that. its ·power w i t h 'respect t o . ,· . . ... . . . ·J.'t1:·:.:j;,\ ·:- 15 submerged lands is affected by its responsibilities t o protect the 16 . Ccmrronweal th' s marine resources under Section l of .Ar _tic_l~ XIV. of I . 17 the Constitution, The Legislature further recognizes that it is 18 r e s t r i c t e d from granting or approving a lease or license or permit a 19 use of the submerged lands that would adversely a f f e c t the protection 20 and preservation of marine resources for the benefit of the people of . ;.· .., 21 the Commonwealth,

22 Section 2 , Amendments. .

23 Chapter 2 of Division 1 of T i t l e 2 of the Commonwealth Code is 24 amended i n its e n t i r e t y t o read a s follows: 25 • ..1 •Y.: :. :·; .(:~~.·.. ;·~: 1 Page 2 II PUBLIC NO. 6-13 Senate B i l l No. '6-42, c~rran. Subst, 1, H,D,1, C,C·.D,1' 1 ·"CH!,PTER 2 •

2 Submerged Lands Act.

3 S1201~ -~~orl~~itle. I 4 !his. C{)apter 'may be cited as the •.submerged Lands Act", 5 . Article l. General

6 S1211 . Purpose.

7 S1212 . Management Guidelines .

8 S1213, Definitions ,

9 S1211. Purp:,se. 10 '!he purpose of this chapter is t o provide for water and non-water 11 dependent uses of ccmm:,nwealth-owned submerged lands ,and t o provide f o 12 the exploration developnent of and extraction of petroleum deposits or ,., ' .. 13 mineral deposits i n submerged l a n d s of t h e Northern Mariana Islands 14 t o provide that the Department of Natural Resources s h a l l establish 15 , procedures for the granting of water and non-water dependent uses and 16 for the granting of exploration or clevelopnent licenses and permits for 1 . ·~:·J··.~:- :·, 17 the extraction of petroleum or mineral deposits. All leases, licenses .~ .-:,,.:.~~.! :~•'.' ·.• ' 18 or permits s h a l l be approved by law.

19 S1212. Management Guidelines.

20 The manager of ccmm:,nwealth-owned submerged lands s h a l l s t r i v e t o 21 provide a balance of public benefits for a l l citizens of the

22 Cmnwealth. The public benefits provided by submerged lands are 23 varied and include:

24 (1) Encouraging d i r e c t public use 'and access; ,

25 (2) Fostering water-dependent uses; Page 3 : PUBLIC ~NO, 6-13 Senate Bill No. 6-42; Corn, Subst. 1 H.D.l C ,C •• D 1' l . ( 3) Ensuring environmental protection) and, 2 3 (4) -- Utiliziri~ renewable resources, , I Gener·a~~n.g 1venues i n a manner consistent w i t h subsections (1) 4 through (4) b.f t h i s Section is a p u b l i c benefit,

5 S1213', Definitions, .. ,.,~~· .

6 In this Chapter, unless i t is otherwise provided or the context 7 c l e a r l y requires a different construction or appiication, the followin 8 definitions apply:

9 ( a ) "coastal Engineering Plan" s h a l l mean a survey and 10 or a p r o f i l e including the e f f e c t s of a proposed developnent 11 on currents, winds, waves, tides, and other Ocean movements; 12 the e f f e c t s of a proposed developnent on erosion control and 13 other protective controls through measures such a s seawalls, 14 bulkheads, revetments, groins, j e t t i e s and i n l e t control, and 15 beach nourishment on natural marine and shoreline processes; 16 a hydrographic survey and bathymetric data both onshore and 17 offshore; and, s h a l l address b o t h long-term and short-term 18 . impacts of the surrounding areas of a proposed developnent 19 project , . . . . w (b) •oepartment" means the Department of Natural !l Resources. 12 {c) •oeveloi;:ment Lease" means a lease granting 3 extraction rights for petroleum deposits or other mineral 24 deposits or a lease for water or non-water dependent uses of 25 submerged Ccmrronwealth-owned lands, Page 4 PUBLIC I.AW NO. 6-13 Senate B i l l No, 6-42, Carran, Subst. 1, H ,D,1, C,C,D,l ' ' . I 1 {d) "Director" means the Director of the Department of -~.. ,J 2 , Natural ResQurces. ~ ,

3 ( e )· - "El?-iironmsntal Protection Plan" means a detailed ,,,.,.. . 4 statement on the environmental impacts of the proposed 5 actions of a"'proposed .. developnent project i n the project area . "" 6 and the natural resources contained therein and i n the 7 surrounding area; the measures t o be used before, during, and 8 a f t e r construction t o mitigate any adverse environmental impacts including, b u t not limited t o those associated w i t h : , a i r water , solid waste, sanitary waste, hazardous materials, noise, erosion control, and pest control; s h a l l include a ·;.;;· . I l~ ! construction schedule and a rronitoring schedule; and, s h a l l . ..... ,, . I 13 include a detailed statement of any adverse environmental I 14 e f f e c t s which cannot be avoided should the propsed 15 developnent project be implemented,

16 (f) "Exploration License" means a license granting ; .' ·.' ;.)\ !·· 17 exploratory rights for petroleum deposits or other mineral 18 d e p s i t s granted by the Director of the Department of Natural

19 Resources,

20 (g) "In-submerged Lands" means w i t h i n , upon, under or 21 of the seabed or subsoil of submerged CcmJTPnwealth-owned 22 lands, or any combination of such locations, 23 , (h) '"onwater-dependent use" means a use which can 24 operate i n a location other t h a n on the waterfront, Examples I 2s include but a r e not limited t o hotels, condominiums, ..:.; ;.';,f~_:j:}:, ·~{,; .•_:.· ·: ;, :.~o:.~;, • ./ .:./·:f~~¥ F .·,! Page 5 PUBLIC NO. 6-13 Senate B i l l N O. 6- 42, Corrm,, Subst, l H.D.l c.c.0.1 . I 1 apartments, restaurants, r e t a i l stores, and warehousing ., 2 f a c i l i t i e s ~ot ~rt of a marine terminal or transfer f a c i l i t y . \ \ ..• ,

3 ( i) ~Permit" means a permit granting extraction rights ! ,., ., . 4 for pet·r.oleum d e p s i t s or other mineral deposits or for water 5 or non·.;_water dependent uses of commonweal th-owned submerged . 6 lands.

7 ( j) • submerged Lands" means a l l lands below the ordinary 8 h i g h water mark extending seaward t o the outer limit of the 9 exclusive economic zone established pursuant t o the Marine

10 Sovereignty Act of 1980 (canmencing w i t h Section 1101 of l1 Chapter l of this Division) or t o any l i n e of delimination ... :·.:.. ~ ' I;: l2 between such zone and a similar zone of any adjacent State, . !;,,:'/,;, l3 (k) "Water-dependent use• means a use which cannot ,. l4 logically e x i s t i n any location b u t on the water, Examples l!5 include, but a r e not l i m i t e d to, water-borne corranerce; water- 16 c r a f t sales i n conjunction w i t h water-dependent uses; water- l~7 c r a f t construction, repair and maintenance; moorage and 18 launching f a c i l i t i e s ; aquaculture; and public fishing piers 19 marinas and marine parks,

20 Article 2 . Licenses, Leases and Permits.

21 S1221. Management of Submerged Lands.

22 S1222, License, Lease or Permit Required,

23 S1223. License I Lease or Permit; Approval by Legislature;

24 No Freehold Interest; P u b l i c Hearing Required,

25 S1224. Use of P u b l i c Parks or P u b l i c Recreation Purposes, :•., . .• .• 1 . : .·,:,.,· .,.• -:f~~i~i~ ··' Page 6 ,·•... ,,, : :••:-=~-· -.. ~'. • ;, •'"r.}, •, :' PUBLIC NO. 6-13 Senate B i l l NO, 6-42, Corn. Subst. 1, H,D,l, C.C.D.1 1 ·s1221. Management of -- Submerged ---··-- ---···-- --,-- Lands.

2 The Director shall . . . . .,_ - be responsible for the management, use and ,..... \ .., 3 disp:,sition of. subme'rged l a n d s of the C m n w e a l t h : '!he Director s h a l l .) 4 have the foUow'ing fOWers and duties:

5 ( a ) TO gr.ant exploration licenses and developnent 6 leases regarding petroleum deposits or other mineral 7 dei:osits which may be located i n submerged lands;

8 (b) TO issue permits for the purpose of extracting 9 petroleum or other mineral der:osits which may be located 0 i n submerged lands;

1 (c) TO grant developnent leases for water and non- 2 water dependent uses of submerged l a n d s . The management 3 of COJT'IJ'1'K)nwealth-owned Submerged lands s h a l l preserve and 4 enhance water-dependent uses. Water-dependent uses s h a l l be favored over other uses i n submerged land planning and J ) i n resolving conflicts between competing lease applicants. J ' I n cases of conflict between water-dependent uses, ] I p r i o r i t y s h a l l be given t o uses which enhance renewable l resources, water-borne commerce, and the navigational and 2 biological capacity of the waters, and t o Ccmm::,nwealth-wide 2 i n t e r e s t s as distinguished from local i n t e r e s t s ,

22 (a) l'bn-wa t e r dependent use of ccmm::,nweal th-owned 23 submerged land is a low p r i o r i t y use providing minimal 24 public benefits and s h a l l not be permitted t o expand or be 25 established i n new areas except i n exceptional circumstances Page 7 I, •, t'• PUBLIC LAW NO. 6-13 Senate B i l i No. '6-42, Corn, Subst. 1 H,D,l C,€·,D,l .' 1 where i t is compatible w i t h water-depehdent uses occurring .,, 2 ...... i n or planne.d for the area, \ ~ \ .... t 3 {eJ - -Tha)·Departrnent s h a l l consider the'natural values 4 of cqrufur;iwealth-owned submerged lands as wildlife habitat, 5 natural area .,,.., -preserve, representative ecosystem, or spawning ,. 6 area prior t o issuing any i n i t i a l lease or authorizing any 7 change i n use. The Department may withhold from leasing 8 lands which i t f i n d s t o have significant natural values, or 9 may provide w i t h i n any lease for the protection of such to values ll ( f ) 'I'O adopt rules and regulations not inconsistent w i t h this Chapter establishing qualifications, terms and .3 conditions regarding exploration licenses, developnent 4 leases and permits for the extraction of petroleum or other . ii'..:'.': 5 mineral deposits and for developnent leases for water and -l:i.:::~~: :_-; :.· . )i':!)/i·., 6 non-water dependent uses of submerged lands, These rules /.~:·· , 7 and regulations s h a l l not grant a lease or permit any use 3 -o f submerged l a n d s which would adversely a f f e c t the 3 protection and preservation of marine resources and the rules and regulations s h a l l insure t h a t the C m n w e a l t h is adequately compensated for petroleum deposits and other 22 mineral deposits extracted from submerged lands and for the 23 use of submerged for water and non-water dependent uses,

24 These rules and regulations s h a l l provide t h a t any person, partnership or corporation proposing t o engage i n any . - Page 8 ·J.:• ... ':"• ~ ~~:: PUBLIC LAW .NO. 6-13 Senate Bil1 No .. 6-42, Corn, Subst. 1, H.D.l, C.C.D.l exploration, developnent or extraction'of petroleum deposits or mineral dep,sits which may be located i n submerged lands 3 or i n any developnent of submerged lands for water or non- water dependent uses s h a l l finance the cost of an environmental protection plan and a coastal engineering plan independently prepared by persons or firms approved by the Director. (g) The power t o lease Cornrronwealth~wned submerged l a n d s is vested i n the Department, which has the authority t o make leases for water and non-water dependent uses upon terms, o:mditions, and length of time i n conformance w i t h the Constitution of the Northern Mariana Islands and t h i s Chapter. S1222. License, Lease or Permit Required. :· .'. No person, partnership or corporation s h a l l engage i n any exploration, developnent, water or non-water dependent uses of submerged lands, or extraction of petroleum deposits or mineral d e p s i t s which may be located i n submerged l a n d s of the Ccrnrronwealth without f i r s t obtaining from the Director an approved license, lease or permit f o r such a c t i v i t y . S1223. License, Lease or Permit; Approval by Legislature; No Freehold Interest; P u b l i c Hearing Required. Prior t o the issuance of any permit or exploration license or developnent lease, or lease for water and non-water dependent uses of submerged lands, the Director s h a l l submit the terms and conditions of . '.•• i,: ' ·.i);Jili Page 9 I~ I • .• ' .. t . . , ,. . , , PUBLIC LAW NO, 6-13 Senate B i l l No.' 6- 42, Corn. Subst. 1, l the license, lease, or perrni t t o the Presiding Officers of both houses 2 of the Legislature and the Legislature s h a l l have the exclusive right 3 t o approve, disapprove or modify the provisions of any such exploration 4 license, developnent lease, or lease of water or non-water dependent USE 5 of submerged l a n d s , or permit t o extract petroleum deposits or mineral 6 d e p s i t s , Approval, disapproval or approval with modifications s h a l l bE 7 by law. A public hearing s h a l l be held on the b i l l for an a c t proposin~ 8 the approval, disapproval or approval w i t h modifications any such lease, 9 license or permit i n a t l e a s t one house of the Legislature. Notice of 10 public hearing on said b i l l for an a c t s h a l l be widely publicized 11 s t a t i n g the t i t l e of the b i l l ; 'the terms, conditions and length of the 12 lease, license or permit; and the date, time and place of the public 13 hearing. The Director s h a l l issue a license, lease or permit w i t h i n 3( .·....... I 14,, days a f t e r the effective date of the law approving such license, lease 15· or permit. Provided, however, that the Director and the Department ,•,•, ... 16 s h a l l grant no freehold i n t e r e s t i n submerged lands. Director and 17 the Department may not transfer t o any private person, corrrnercial 18' partnership or corporation an i n t e r e s t i n submerged lands that exceeds 19 twenty-five years, i n c l u d i n g renewal r i g h t s , An extension of not more 20 t h a n f i f t e e n years may be given Up)n approval by three-fourths of the 21 members of the Legislature. I t s h a l l not be timely t o request such 22 f i f t e e n year extension u n t i l the l a s t five years of the principle lease

23 S1224. Use for Public Parks or P u b l i c Recreation purposes, 24 'Ihe use of Comnwealth-owned submerged lands for public parks, 25 p u b l i c recreation puq::oses, or p u b l i c marinas that a r e completely . ·~:; ~~;ili~ .'. ))if\ Page 1 0 I I 11 ......,. ' "' .... • I •~ 4' _, .. PUBLIC LAW NO. 6-13 Senate B i l l No, 6-42, Corn, Subst; 1, 1 owned, operated and managed by the Commonwealth government s h a l l be 2 granted without charge i f the submerged land improvements a r e 3 available t o the general public on an unreserved first-come, first- 4 served basis and are not managed t o prod.ice a p r o f i t .

5 Section 3. Legislative Approval - Specific Projects.

6 ( a ) The Legislature expressly approves t h e use of

7 C m n w e a l t h submerged lands for the following s p e c i f i c 8 projects t o be carried out and managed by t h e corranonwealth's

9 Department of Natural Resources, Division of F i s h and Wildlife: to {l) Improvement t o Smiling cove Marina: Project Ll F-2-B, as funded by Federal Aid i n Sport Fish Restoration

12 Act (16 u.s.c. 777-777k), and approved by Commonwealth .3 coastal Resources Management Office Permit No. SLR-87-X-107, .4 and the Department of the Army Permit No. 2018; and ,: .. , .... ; :i: 1.·,'.r . .s (2) Sugar Ramp: locally funded project, approved ' ,,. ·.••. 6 by Commonwealth Coastal Resources Management Office Permit i ' ~,;? ): !:;i}~

7 No. SS/LRM 88-X-24, and the Department of the Army Permit ·=.:>- ··,··

8 No, 2034; and

3 (3) sasanhaya Boat Ramp on Rota: Project F-1-B, as 3 funded by Federal Aid i n Sport F i s h Restoration Act (16 u.s.c. 21 777-777k), and approved by Commonwealth Coastal Resources

22 Management Office Permit No. RPI/LRM 87-X-80.

23 (b) No public hearing s h a l l be required prior t o 24 implementation of these s p e c i f i c projects by the CCfMOnweal th

25 Department of Natural Resources, Division of F i s h and Wildlife. Page 11 ,. ~ .. ·# / :·..;;,~.:..- . - PUBLIC LAWN9. 6-13 ' Senate Bili NO. 6-42, c mm. Subst,. 1, H.0.1, c.c:0.1 ·

1 (c) All other future public projebts involving Commonwealth 2 owned submerged l a n d s s h a l l be subject t o prior Legislative 3 approval as per subsections 1 2 2 3 and 1224 of Section 2 of t h i s Actt.

4 Section 4 . Severability. I f any provision·of t h i s Act, or its 5 application t o any person or circumstances is h e l d invalid, the 6 invalidity does not a f f e c t other provisions or applications of the Act 7 which can be given e f f e c t without the invalid provisions, and t o t h i s 8 end the provisions of t h i s Act a r e severable.

9 Section s. ------- . - ----- Effective Date. T h i s Act s h a l l take e f f e c t upon its 10 approval by the Governor, or upon its becoming law without such ',.,. 11 approval, . .. .'·:~~ . !.. .. _ ..·'•;:.- ··· ~. 'I,, ,. :,i};, ~ ATI'EST: :t·:::, .• ·..-11". . ~,-.,,..,,,--~~------.-. Manuel P. Villagomez .'· '!.~: ·--~}:~ Senate Legislative Secretary ~castrc Clerk r.overnnr Commonwealth of the Northern Mariana Islands GOV. COMM. __ (HOLl$U Ctt1 •· ·•t ., ·• ",,' ~. ',' ! Page 1 2 .· ,·.,1·•·.