CNMI accepts US transfer of mineral rights

Gov. Eloy S. Inos accepted on behalf of the CNMI people yesterday the U.S. Department of the Interior’s patent conveying to the Commonwealth oil, gas, and other mineral deposit rights found in its 3-mile submerged lands, marking another milestone in the islands’ 38-year relationship with the United States.
Visiting U.S. Interior assistant secretary for insular areas Lori Faeth hand-delivered the patent—signed by Interior Secretary Sally Jewell on March 13—for the governor to accept and sign.

The signing was held before a crowd of local and federal officials on Capital Hill yesterday morning.

“I’m happy to accept this grant of rights from the Department of the Interior secretary and I will accept it on behalf of the people of the Commonwealth,” the governor said as he signed off on the document.

Prior to the signing of the patent, Faeth announced Interior grants totaling over $10.265 million that will go to different programs and services for the CNMI including for capital improvement projects, education training, Compact-impact, and Breadfruit Initiative.

The governor thanked Interior for the grant funds and assured that the CNMI will put them to good use.

‘Historic day’

Faeth said she’s “honored” to share this “historic” day with the CNMI, referring to the transfer and acceptance of mineral rights.

Office of Insular Affairs director Nik Pula echoed Faeth’s statement.

“This is a great historic event…Francisco [Taitano] and I are pleased to join our assistant secretary be part of history,” Pula said.

Delegate Gregorio Kilili C. Sablan (Ind-MP) separately said yesterday he congratulates the governor “who accepted this transfer of oil, gas, and mineral rights on behalf of the people of the Northern Marianas.

“Thanks to Senators Wyden and Murkowski and to Chairman Doc Hastings and Ranking Member DeFazio, who helped me get this law enacted. And especially thanks to Reps. George Miller and Nick Rahall and the late Phil Burton, who had the foresight to add these mineral rights to the Territorial Submerged Lands Act some 30 years ago,” Sablan told Saipan Tribune.

Sablan worked with other members of Congress to move a CNMI submerged lands bill, which President Barack Obama signed into Public Law 113-34 in September 2013.

Faeth thanked the governor and the CNMI “for the opportunity to carry out the mandate provided under Public Law 113-34.”

“In my capacity as acting assistant secretary of Interior for insular areas, I’m honored to join you as the Department conveys to you—the people of the Northern Mariana Islands—the rights to oil, gas and minerals deposited within the 3 miles submerged lands which you now control,” Faeth said.

The governor, before signing off on the document, thanked on behalf of the CNMI people, Interior Secretary Jewell for her leadership in making the transfer of mineral rights.

Inos also acknowledged Sablan’s effort to “initiate legislation” on the submerged lands bill, as well as House Speaker Joseph Deleon Guerrero (Ind-Saipan) for inquiring about the status of the submerged lands mineral rights during his visit to Washington, D.C.

Sablan earlier prompted Jewell to take action on the transfer of oil, gas, and other mineral rights to the CNMI.

‘What’s out there?’

The governor, in an interview later, said the CNMI can now seek out seafloor mining companies that may be interested in “harvesting” any of the minerals within the CNMI’s jurisdiction.

Canada-based Nautilus Minerals and Australia-based Neptune Minerals were earlier reported to be interested in or applying for mining exploration licenses to mine in the area.

Inos said to date, the CNMI has not received any inquiry.

“We had learned of some interests from some marine miners but we don’t know if their interest is within our submerged lands or beyond. We’re going to get in touch with them if they have interest in our jurisdiction,” Inos told reporters.

Seafloor mining can bring in millions of dollars into the CNMI coffers.

When asked whether Interior would be willing to fund any exploration within CNMI jurisdiction, Faeth said, “At this time, we don’t have funds available for that.”

A U.S. Geological Survey report on marine mineral resources of the Pacific islands said mineral deposits that do, or are likely to occur within CNMI exclusive economic zones include “cobalt-rich iron-manganese crusts, iron-manganese nodules, phosphorite deposits, epithermal gold deposits, hydrothermal manganese, and iron oxide deposits.”

The others include “hydrothermal manganese and iron oxide deposits, hydrothermal polymetallic sulfides, insular and lagoonal phosphorite deposits, shallow-water sand, and gravel deposits, and shallow- and deep-water precious coral.”

Pula said the USGS study may have been done a long time ago. Funding for a new study, he said, can be requested through technical assistance, “provided that there is available funding.”

$10 million grants

Faeth, at the start of the ceremony, announced more than $10 million in grants that will benefit the CNMI.

The governor jested, “What day is today? Lucky day.”

Of the total amount, more than $7.492 million will be for the CNMI’s capital improvement projects. It will be used in the following manner: Over $5.619 million for the Puerto Rico dump closure on Saipan; $936,594 for the Rota solid waste facility; and $936,594 for Tinian’s 500,000-gallon water reservoir.

“I know that we’re, in the case of CIP, a bit slow in spending, but most of the projects are now out of the planning phase and it’s now getting into A&E [architectural and engineering] and construction so there will be accelerated construction activities in the coming months,” the governor said.

Inos added that that NEPA process “held us up for a long time.” NEPA stands for National Environmental Protection Act.

– More than $1.93 million will be for Compact-impact, which the CNMI will use for government health, educational, social, or public safety services specifically affected by Freely Associated States citizens living in the CNMI.

– $473,367 goes to the Public School System to provide training for public school teachers, teacher aides and school administrators.

– $413,000 in technical assistance will be used to buy road maintenance equipment.

Faeth said this will “really help in improving roads for tourist sites, access to hospital and schools.”

– $45,000 will go to the Department of Lands and Natural Resources’ Division of Lands and Survey to “digitize land registration records,” Faeth said.

– $324,385 will go to the University of Hawaii’s Office of Research, it will be used to help the CNMI’s Breadfruit Initiative.

Ivan Blanco, coordinator for the CNMI Breadfruit Initiative, said yesterday that this amount will be used for a “market feasibility study,” which will determine, for example, the price per kilogram of shredded breadfruit versus flour breadfruit.

The CNMI is looking to develop an industry for healthy gluten-free breadfruit, which is currently in demand in many parts of the world.