The Exploitation of Natural Resources of the Moon and Other Celestial Bodies

Th e Exploitation of Natural Resources of

the Moon and Other Celestial Bodies

Studies in Space Law

General Editor

F.G. von der Dunk

University of Nebraska, College of Law, Space and

Telecommunications Law Program

Editorial Board

E. Back Impallomeni, University of Padua

S. Freeland, University of Western Sydney

J. Gabrynowicz, National Remote Sensing & Space Law Center,

University of Mississippi

S. Hobe, University of Cologne

R. Jakhu, Institute of Air and Space Law, McGill University

F. Lyall, University of Aberdeen

V.S. Mani, Gujarat University

K.U. Schrogl, German Aerospace Center DLR

L.J. Smith, University of Bremen

VOLUME 4

Th e Exploitation of Natural

Resources of the Moon and

Other Celestial Bodies

A Proposal for a Legal Regime

By

Fabio Tronchetti

LEIDEN • BOSTON

2009

Th is book is printed on acid-free paper.

Library of Congress Cataloging-in-Publication Data

Tronchetti, Fabio.

Th e exploitation of natural resources of the moon and other celestial bodies : a proposal

for a legal regime / by Fabio Tronchetti.

p. cm. -- (Studies in space law ; v. 4)

Includes bibliographical references and index.

ISBN 978-90-04-17535-8 (hardback : alk. paper) 1. Space mining--Law and legislation.

2. Natural resources--Law and legislation. 3. Moon--International status. I. Title.

KZD3491.5.T76 2009

341.4’7--dc22

2009029668

ISSN 1871-7659

ISBN 978 90 04 17535 8

Copyright 2009 by Koninklijke Brill NV, Leiden, Th e Netherlands.

Koninklijke Brill NV incorporates the imprints Brill, Hotei Publishing,

IDC Publishers, Martinus Nijhoff Publishers and VSP.

All rights reserved. No part of this publication may be reproduced, translated, stored in

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Fees are subject to change.

pr inted in the ne ther l ands

To the ever lasting memory of my beloved grandfather Fabio and

grandmother Alba

For their love and example

“Th e Sanskrit word for “action” is “karma”, derived from the root

“kri” which means “to do”.

One does action and gets remunerated for it, in turn transferring

this remuneration to others for work done by them.

Th us, fruit has arisen out of action, and action out of fruit.

From time immemorial, life has been conducted in this manner.

Th is is called the wheel of karma.

To act with the motive of gaining fruits is to invite bondage.

Relinquishing the fruits frees us from all miseries.”

Sri Swami Rama, Himalayan master

Contents

Acknowledgments .................................................................................. xv

Abbreviations .......................................................................................... xvii

Chapter 1. Introduction ........................................................................ 1

1.1. Th e exploitation of natural resources of the Moon

and other celestial bodies: a new opportunity of

development for mankind .................................... 1

1.2. Space law and the natural resources of the Moon

and other celestial bodies: the need for a legal

regime ..................................................................... 3

1.3. Th e natural resources of the Moon and other

celestial bodies ....................................................... 5

1.4. Overview of the analytical framework .................... 6

Chapter 2. Th e Outer Space Treaty, the Moon Agreement and

the 1996 Declaration on Space Benefi ts ...................... 9

2.1. Introduction ............................................................... 9

2.1.1. Th e background to the discussion on the

legal status of outer space ......................... 9

2.1.2. Legal scholars and the status of outer

space ............................................................ 10

2.1.3. Th e United Nations and outer space:

defi ning the legal status of outer space

in the period 1958–1966 ........................... 14

2.2. Th e Outer Space Treaty ............................................. 18

2.2.1. Background and importance of the Outer

Space Treaty ................................................ 18

2.2.2. Article I of the Outer Space Treaty ............... 20

2.2.3. Th e principle of freedom of exploration

and use ......................................................... 21

viii Contents

2.2.4. Th e principle of the exploration and use

of outer space for the benefi t and in

the interest of all countries, and the

‘province of all mankind’ concept ................ 23

2.2.5. Article II of the Outer Space Treaty ................ 26

2.2.6. Th e application of the ‘non-appropriation’

principle to private operators and outer

space resources .............................................. 29

2.2.7. Articles VI and VII of the Outer

Space Treaty ................................................... 33

2.3. Th e Moon Agreement .................................................. 38

2.3.1. Background and importance of the Moon

Agreement ...................................................... 38

2.3.2. Th e 1979 Moon Agreement and the Outer

Space Treaty ................................................... 41

2.3.3. Th e ‘Common Heritage of Mankind’

concept and the natural resources

of the Moon ................................................... 45

2.4. Th e 1996 UNGA Declaration on

S pace Benefi ts ............................................................ 61

2.4.1. I ntroduction ........................................................ 61

2.4.2. Th e roots of the 1996 Declaration on

S pace Benefi ts: the developing States’

interpretation of Article I of the

Outer Space Treaty ........................................ 62

2.4.3. Th e draft ing history of the 1996

Declaration on Space Benefi ts ..................... 65

2.4.4. Th e 1996 Declaration on Space Benefi ts ........ 77

2.4.5. Conclusion: what is the value of the

1996 Declaration on Space Benefi ts? ........... 78

2.5. Conclusion ..................................................................... 81

Chapter 3. Th e Common Heritage of Mankind ................................... 85

3.1. Introduction .................................................................. 85

3.2. Th e ‘Common Heritage of Mankind’: a new way

for managing common areas beyond national

jurisdiction ................................................................ 87

3.3. Th e origin and evolution of the ‘Common Heritage

of Mankind’ concept ................................................ 91

Contents ix

3.3.1. Introduction ..................................................... 91

3.3.2. From 1967 to 1971 ........................................... 92

3.3.3. 1972–1974: new elements in the ‘Common

Heritage of Mankind’ concept ................... 98

3.3.4. 1975–1979: further development of the

‘Common Heritage of Mankind’

concept ......................................................... 99

3.3.5. Th e 1980’s: the decline of the ‘Common

Heritage of Mankind’ concept ................. 104

3.3.6. 1980–1982: the failure of the 1982

Law of the Sea Convention ...................... 104

3.3.7. Th e 1990’s: a second chance for

the ‘Common Heritage of Mankind’ ....... 110

3.3.8. Th e 1994 Implementation Agreement ........ 116

3.3.9. Th e ‘Common Heritage of Mankind’ and

the Moon Agreement ............................... 118

3.3.10. Th e emergence of a new interpretation of

the ‘Common Heritage of Mankind’

concept ....................................................... 123

3.4. Th e legal status of the ‘Common Heritage of

Mankind’ concept: ‘Mankind’ as a new

subject of international law? ................................. 126

3.5. Conclusion ................................................................... 129

Chapter 4. Th e management of international areas and their

limited natural resources: the examples of

Antarctica and ITU ........................................................ 131

4.1. Introduction ................................................................ 131

4.2. Antarctica ..................................................................... 132

4.2.1. Th e origins of the Antarctic Treaty

System ........................................................... 132

4.2.2. Th e road to the Antarctic Treaty .................... 134

4.2.3. Th e 1959 Antarctic Treaty ............................... 136

4.2.4. Th e Antarctic Treaty and the Outer

Space Treaty ................................................. 139

4.2.5. Th e Convention on the Regulation of

Antarctic Mineral Resources ..................... 141

4.2.6. Th e Protocol on Environmental Protection

to the Antarctic Treaty ................................ 155

x Contents

4.2.7. Th e Convention on the Regulation of the

Antarctic Natural Resources: a lesson for

the extraterrestrial resources regime? ....... 159

4.3. Th e geostationary orbit .............................................. 163

4.3.1. Exploiting the geostationary orbit ................. 163

4.3.2. Th e geostationary orbit and the frequency

spectrum as limited natural resources? .... 164

4.3.3. Th e allocation system of the orbit/

spectrum resource ....................................... 168

4.3.4. Th e limits and problems of the current

methods of orbit/spectrum allocation ...... 182

4.3.5. Th e ITU procedures for the management

and allocation of the orbit/spectrum

resource: a valuable example for the

extraterrestrial resources regime? ............. 187

Chapter 5. Property rights in outer space: a crucial issue in the

wake of the commercialisation of outer space and

its resources ..................................................................... 193

5.1. I ntroduction ..................................................................193

5.2. Immovable and movable property rights

in outer space ............................................................196

5.3. Th e myth of immovable property rights in outer

space: some preliminary considerations ............. 197

5.3.1. Th e non-appropriative nature of outer space:

rejecting claims to immovable property

rights in outer space .................................... 198

5.3.2. Private claims of ownership and immovable

property rights over the Moon and other

celestial bodies ............................................. 202

5.3.3. Individual claims of the Moon and market

of extraterrestrial properties: the example

of Lunar Embassy and the case of Nemitz

versus the United States .............................. 203

5.3.4. Space commercialization versus the non-

appropriation principle: the issue of

property rights over natural

resources in outer space ............................. 211

5.3.5. Conclusion ........................................................ 217

Contents xi

5.4. Movable property rights in outer space: the legal

regime governing extraterrestrial natural

resources .................................................................. 218

5.4.1. Resource appropriation and use under the

Outer Space Treaty ....................................... 220

5.4.2. Resource appropriation and use under the

Moon Agreement ........................................ 225

5.5. Conclusion ................................................................... 231

Chapter 6. Elements of a legal regime to govern the commercial

exploitation of extraterrestrial resources ..................... 233

6.1. Introduction: is there a need for a dedicated

legal regime? ........................................................... 233

6.2. Underlying foundations of the legal

regime required ...................................................... 238

6.3. General characteristics of the legal

regime required ...................................................... 241

6.4. Legal nature of the legal regime required:

towards an international agreement .................... 242

6.5. Purpose and main principles of the proposed

Agreement ............................................................... 244

6.6. Th e institutional part of the Agreement ................... 246

6.6.1. Th e International Space Authority .................. 246

6.6.2. Characteristics of the International

Space Authority ........................................... 246

6.6.3. Th e Assembly .................................................... 247

6.6.4. Th e Council ...................................................... 249

6.6.5. Membership of and decision-making in

the Council .................................................... 250

6.6.6. Th e Technical and Legal Committee ............. 252

6.6.7. Financing the Authority .................................. 253

6.7. Th e exploitation of lunar resources: applicable

rules and licensing procedure ............................... 254

6.7.1. Th e exploration of the lunar and other celestial

bodies’ surface: general considerations ..... 254

6.7.2. Legal aspects of the exploration phase .......... 255

6.7.3. Th e application procedure .............................. 257

6.7.4. Th e submission of an exploitative

working plan ................................................ 257

xii Contents

6.7.5. Review of the plan ........................................... 259

6.7.6. Th e license ......................................................... 260

6.8. Th e liability regime applicable to the exploitation

of extraterrestrial resources .................................. 263

6.8.1. Th e Liability Convention and the

exploitation of lunar and other

celestial bodies’ resources ........................... 264

6.8.2. Liability for damage caused to the space

environment ................................................. 267

6.9. Th e proposed dispute settlement mechanism ......... 269

6.9.1. Th e need for a dispute settlement

mechanism: general introduction ............. 269

6.9.2. Th e WTO dispute settlement mechanism:

general aspects ............................................. 272

6.9.3. Th e procedure for the settlement

of disputes .................................................... 274

6.9.4. First stage .......................................................... 274

6.9.5. Second stage ..................................................... 275

6.9.6. Th ird stage ........................................................ 277

6.9.7. Appeal ................................................................ 277

6.9.8. Aft er the DSB ruling ........................................ 278

6.10. Th e dispute settlement mechanism of the

proposed legal regime ............................................ 278

6.11. Th e exploitation of lunar resources for the benefi t

of all mankind ......................................................... 281

Chapter 7. Conclusion ........................................................................... 287

annexes

Annex 1. Draft International Agreement on the exploitation

of natural resources of the Moon and other

celestial bodies ................................................................... 293

Annex 2. Treaty on Principles Governing the Activities of States

in the Exploration and Use of Outer Space, including

the Moon and Other Celestial Bodies ............................ 311

Contents xiii

Annex 3. Convention on International Liability for Damage

Caused by Space Objects .................................................. 319

Annex 4. Convention on Registration of Objects Launched into

Outer Space ........................................................................ 331

Annex 5. Agreement Governing the Activities of States on the

Moon and Other Celestial Bodies ................................... 337

Annex 6. 1962 (XVIII). Declaration of Legal Principles

Governing the Activities of States in the

Exploration and Use of Outer Space .............................. 349

Legal documents ...................................................................................... 353

Treaties and conventions .................................................................... 353

Declarations, principles and documents .......................................... 355

Case Law ................................................................................................... 359

Bibliography ............................................................................................. 361

Books .................................................................................................... 361

Ar ticles ................................................................................................... 365

Internet and web-based sources ........................................................ 378

Index........................................................................................................... 379