If the federal government pushes seabed mining on the CNMI, U.S. Delegate Kimberlyn King-Hinds wants the Commonwealth to at least get its fair share—50% of the revenues generated from the activity.
King-Hinds said her office is finalizing legislation that would split potential seabed mining revenues 50-50 between the CNMI and U.S. Treasury, an even better deal than the 37.5% share she said Gulf states receive from offshore oil and gas revenues.
“This legislation proposes 50-50, right? So 50% goes to the CNMI, 50% goes to the U.S. Treasury and with no exemptions to any of the lessees,” she said.
King-Hinds made the comments during her annual “From the Hill to the Vill: Community Conversations” town hall series on Saipan last Tuesday, Aug. 11, at the American Memorial Park indoor theater.
The delegate made clear, however, that pushing for a share of the money does not mean she supports seabed mining. She said she remains conflicted about the issue because the science and baseline studies on its potential environmental impacts are lacking.
But with the waters being eyed for potential mining beyond the CNMI government's control, King-Hinds said the Commonwealth needs a backup plan.
“If they're gonna shove this down our throats, right, I wanna be able to ensure that we have a backup plan, we have insurance and that we actually benefit from the waters that surround us,” she said.
The discussion came after environmental consultant and fisheries expert John E. Gourley urged the CNMI to engage in the federal process rather than simply say no.
Gourley said participation could give the CNMI an opportunity to push for environmental buffers around sensitive areas, seek a share of revenues and potentially benefit economically by having mining vessels homeport in the Commonwealth and purchase local goods and services.
King-Hinds said her office has already been discussing revenue sharing with the Bureau of Ocean Energy Management.
She explained that private mining companies would enter into leases with the federal government, which would then provide the CNMI with an agreed percentage of the revenue.
“My proposal, our proposal is 50%,” King-Hinds said. “Like you take 50, we take 50.”
That would be substantially more than the 37.5% share King-Hinds said Gulf states receive from offshore oil and gas revenues.
Whether the CNMI can stop seabed mining altogether, meanwhile, could become increasingly difficult because King-Hinds said support for it is growing on both sides of the political aisle in Washington, D.C.
“We have to have a just-in-case plan, right, that if we are not in a position to be able to stop this, and I'll tell you the climate and the mood about this issue in Congress, there's a lot of support for this on both sides of the aisle,” she said.
And much of that support, according to King-Hinds, has less to do with the CNMI and more to do with the geopolitical competition between the United States and China.
“A lot of it is directly related to the geopolitics, the tension, the competition with China and the need for some of these minerals,” she said.
King-Hinds said the issue is increasingly being viewed in Washington, D.C. through the lens of national security, particularly the need for the United States to secure critical minerals and reduce its dependence on China.
She said the argument among supporters is that China is beating the United States in the race for minerals partly because it operates with fewer environmental restrictions, while U.S. projects must navigate more stringent regulations.
“But that is kind of where, you know, the mood is at. It's all very national security driven because there is a shortage in the supply chain and they're trying to boost up that supply chain,” King-Hinds said.
She acknowledged that those same environmental protections are important and said concerns remain over what seabed mining could do to the ocean floor, marine ecosystems and fish migration.
King-Hinds said feedback she has received indicates the CNMI community itself is divided, with some focused on protecting the environment and others looking at the possible economic opportunities.
The debate could also ultimately end up in court.
Gourley told King-Hinds that the Center for Biological Diversity recently contacted him about joining a potential lawsuit challenging deep-sea mining in the Marianas.
King-Hinds said she expects numerous lawsuits and said litigation is one legitimate way for those opposed to the policy to try to influence its implementation.
For her office, however, King-Hinds said the immediate task is preparing for what happens if federal plans proceed despite those challenges.
“My job is to focus on, okay, what if, right? Where are the opportunities? What if, right?” she said.
King-Hinds said her office ultimately hopes to get the 50-50 revenue-sharing legislation through Congress with support from the House Natural Resources Committee and BOEM.
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