Frants Dalgaard-Knudsen 0 MINERAL CONCESSIONS AND lAW IN GREENlAND VOL. I. 1991 In pursuance of the European Convention of 19. April 1972, ratified by Denmark on 28. February 1975, and following public defence on 10. May 1991 at the European University Institute, an Examining Board comprising; 0 Prof., Dr. jur. Isi Foighel (chairman), Prof. Terence C. Daintith, Prof., Dr. jur. Hans J acob Bull, Prof. Francis Snyder, Prof., Dr. jur. Thomas W. Walde, decided to award the author of this dissertation the academic degree of Doctor of Laws. 0 Mineral Concessions and Law in Greenland (c) Frants Dalgaard-Knudsen "Mineral Concessions and Law in Greenland" OUTLINE OF THE DISSERTATION 0 1. Introduction •• 11 2. The physical appearance of Greenland .• 21 3. A brief background history of Greenland •• 31 4. Who does the soil of Greenland belong to? •• 3 9 5. The Greenlandic offshore area •• 63 6. The EEC-connection •• 7 5 7. Administrative competencies in Greenland •• 8 6 8. On laws and justice .• 96 9. The Mineral Resources Act . 11 2 0 10. Offshore exploitation activities .124 11. The concept of concessions .143 12. The development of Greenlandic concessions • 1 7 3 13. Analysis of recent concessions .183 14. Conclusions .239 TABLE OF CONTENTS Preface ••• 9 1. INTRODUCTION •• 11 2. THE PHYSICAL APPEARANCE OF GREENLAND •• 21 2.1. Geography and climate •.•••.••...•.•••..•••••...••...•.• 21 2.1 .1. Location •. 21 2.1.2. Sea and coastal line •• 21 2.1.3.Theicecap •• 22 2.1.4. Ice at sea •• 22 2.1.5. Climate •• 23 2.1.6. Permanent frost •. 23 0 2.2. Geology ................................................ 24 2.2.1. Fold mountains •• 24 2.2.2. Sediments •• 25 2. 3. Minerals and mines ..................................... 26 2.4. Some future exploitation possibilities .•••••..••••..••• 27 3. A BRIEF BACKGROUND HISTORY OF GREENLAND .• 31 3. 1 . Palaeoeskimos . ......................................... 31 3.1.1. Independence I •• 31 3.1.2. Independence II •• 31 3.1 .3. Sarqaq-culture •• 31 3.1.4. The Dorset culture •• 32 3. 2. Greenlanders and Inuits ................................ 32 3.2.1. The Nordic Greenlanders •• 32 3.2.2. The Greenlanders and the Palaeoeskimos .. 33 3.2.3. The Neoeskimos- Inuits •• 34 3.2.4. The Greenlanders and the Inuits .. 34 3.3. 1500- 1900 .......•...••.............•................. 35 3.3.1. Voyages of discovery •• 36 0 3.3.2. Europeans whaling •• 36 3.3.3. The re-colonization •• 36 3.3.4. The Inuits •• 37 3. 4. The 20th century ....................................... 37 4. WHO DOES THE SOIL OF GREENLAND BELONG TO? •. 39 4.1. Introduction ........................................... 39 4. 2. External claims ........................................ 40 4. 2.1 . Colonialism •• 40 4.2.2. Norwegian claims on Greenland •• 40 4.2.2.1. The original connection with Norway •• 40 4.2.2.2. The administrative transfer to Denmark .. 41 4.2.2.3. The formal transfer to Denmark •• 42 4.2.2.4. Re-negotiations .• 42 4.2.2.5. The Hague case •. 43 4.2.3. Claims from other states than Norway? •• 44 4.2.4. Conclusion regarding external links .. 46 4 4.3. Internal rights and obligations •••.••••.•••••••.•.••••. 46 4.3.1. Rights on a historical basis •• 46 4.3.1.1. Inuits or Nordic Greenlanders •• 47 4.3.1.2. Mutual acceptance •• 48 4.3.2. Aboriginal rights •• 48 4.3.2.1. Introduction •• 49 -.v;.... 4.3.2.2. The United States •. 49 4.3.2.3. A theory on aboriginal rights .• 50 4.3.2.4. Aboriginal rights in Greenland •• 50 4.3.2.5. Aboriginal rights and the present law •• 51 4.3.3. The 1953 revision of the Danish constitution •• 52 4.3.4. The United Nations's recognition of the integration •• 54 4.3.5. The Home Rule Act •• 56 0 4.4. Greenland independent ..•••.•••..•......•.•...•...••.••. 58 4.4.1. Regulations of the United Nations •• 58 4.4.2. The Greenlandic exercise of the right to self-determination •• 59 4.4.3. A right to re-exercise, and its consequences •• 60 4.5. Conclusion ............................................. 61 5. THE GREENLANDIC OFFSHORE AREA •• 63 5.1 . The legal zones ........................................ 63 5.1.1. The coastal line .• 63 5.1.2. The territorial waters •. 64 5.1 .3. The continental shelf •• 64 5.1.4. Exclusive economic zone •• 66 5.2. The marine border lines and disputes •.••••••••••..••••• 67 5.2.1. The North Atlantic Ocean •• 67 5.2.1.1. The Greenland Sea •• 67 5. 2.1 .1 .1 • Svalbard •• 68 5.2.1.1.2. Jan Mayen •• 69 5.2.1 .2. The Danmark Strait •• 70 0 5.2.1.3. Off South Greenland •• 70 5.2.2. Davis Strait, Baffin Bay and Nares Strait •• 70 5.2.3. The Arctic Ocean .• 71 5.2.3.1. The sector theory .• 71 5.2.3.2. High Sea and equidistance •• 72 5.2.3.3. The LOS Convention •• 73 5.3. Conclusion regarding the Greenlandic zone .•••..••.••••• 73 6. THE EEC-CONNECTION •• 75 6.1. Introduction ........................................... 75 6.2. Greenland's entry into the EEC ..••.•••••••••.•••.•••••• 76 6.3. The "membership 11 period ................................ 77 6.3.1. Greenland in the treaties •• 77 6.3.2. Other applicable community acts .• 78 6.3.3. Economic subsidies .• 79 6. 4. Greenland's withdrawal .•..•••.•.••..•..••••••..••....•• 80 6.5. The OCT status ......................................... 81 6.5.1. OCT in general .• 81 5 6.5.2. The protocol on Greenland •• 82 6.5.3. National acts •• 83 6.6. Raw materials and exploitation •..••....•.••.•••.••.••.• 84 6.7. Conclusion ............................................. BS 7. ADMINISTRATIVE COMPETENCIES IN GREENLAND •• 86 7.1. Historical development .•....•••••....••...••.•••.•••.•. 86 7.5.1. The colonial administrative regime •• 86 7.5.2. The post-colonial period •. 87 7.2. After the introduction of local autonomy in 1978 ••••••• 88 7.2.1. Non-transferable matters remaining with state authorities •• 88 7.2.2. The authorities in Denmark at present •• 89 7.2.3. Administrative tasks of the Home Rule authorities •• 91 0 7.3. Administration of the mineral resources •..•••..•.•••.•• 92 8. ON LAWS AND JUSTICE •. 96 8.1. Legislation ............................................ 96 8.2. The laws of obligations and property in Greenland •.•••• 97 8.3. Law of land ............................................ 99 8.3.1. Which land? •• 99 8.3.2. Legal sources •• 99 8.3.3. Ownership of land .100 8.3.4. Rights of use in legal theory .101 8.3.5. Greenlandic land use in legal perspective .103 8.3.5.1. Towns and settlements .103 8.3.5.2. Agricultural areas .103 8.3.5.3. Local utilization of mineral resources • 1 04 8.3.5.4. Hunting and fishing • 1 os 8.3.6. Expropriation • 1 06 8.3.7. Administrative regulations • 1 07 8. 4. Taxation .............................................. 1 07 0 8. 5. Business licensing .................................... 1 08 8.6. Company law ...•••.......•..........•..........•.....•• 109 8. 7. The Authorities of law ••..•..••.•.••.•••....•••..••••• 1 09 9. THE MINERAL RESOURCES ACT .112 9.1. Introduction .......................................... 112 9.2. Requirements of the private party .•.••..•••..••.••..•• 114 9.3. Immediate rights of the private party .••..••..••..•... 114 9. 4. Practical matters . .................................... 11 5 9.4.1. Which areas of Greenland .115 9.4.2. Time limits .116 9. 4. 3. Work methods • 116 9.4.3.1. Plans .116 9.4.3.2. Technical standard .116 9. 4. 3. 3. Closure • 11 7 9. 5. Economic issues ................. ...................... 11 7 9.5.1. Guarantees .117 9.5.2. Rewards .117 6 9.5.3. Fees .118 9.5.4. Royalties .118 9.5.5. Tax and duty .118 9.5.6. Public participation .119 9. 6. Relations to third parties •••••••..•••••••...••••.•••• 11 9 9.6.1. Other licensees .119 9.6.2. Geological surveys .120 9.6.3. Succession .120 9.6.4. Property registration .121 9.6.5. Local use of the concession area .121 9.7. Accessory duties ..........•.......•....••.••.••.....•• 122 9.7.1. Information .122 9.7.2. Supervision .122 9.7.3. Personnel .123 9.8. Termination ........................................... 123 0 9.8.1. Exploration concessions .123 9.8.2. Exploitation concessions .123 10. OFFSHORE EXPLOITATION ACTIVITIES .124 10.1. Applicable exploitation acts .•••••••••••••••.•••.••• 124 10.1.1. On the continental shelf .124 10.1.1 .1. Which natural resources .124 10.1 .1 .2. Competencies .125 10.1.1.3. Ownership of the natural resources .125 10.1.1.4. Specific safety measure provisions .126 10.1.1.5. Enforcement .126 10.1 .2. In territorial waters .127 10.2. Legislation applying to offshore activities •••..•.•• 128 10.3. The legal character of offshore exploitation equipment .............................•............. 130 10.3.1. Stationary equipment .131 10.3.1.1. Characteristics .131 0 10.3.1.2. Installation or ship .132 10.3.1.3. Registration and mortgage .132 10.3.1.4. Other applicable acts .133 10.3.2. Floating equipment for stationary use .133 10.3.2.1. Characteristics .133 10.3.2.2. Installation or ship .133 10.3.2.3. Registration and mortgage .134 10.3.2.4. Other applicable acts .134 10.3.3. Floating, movable equipment .134 10.3.3.1. Characteristics .135 10.3.3.2. Installation or ship .135 10.3.3.3. Registration and mortgage .136 10.3.3.4. Other applicable acts .137 10.3.4. Ships .140 10.4. Activities off Greenland till present .•••••••••••.•• 140 11. THE CONCEPT OF CONCESSIONS .143 11.1. Exploitation activities and their formal basis •••.•• 143 7 11 . 2. Terminology . ...............•........•...•....•.....• 1 4 4 11 .3. Survey of the concession concept in various countries ........................................... 147 11 • 3. 1 • Common law . 1 48 11 .3.1 .1. Private law and administrative law .1 48 11.3.1.2. In the United States • 1 4 9 11.3.1 .3. In the British Commonwealth .150 11.3.2. Civil law • 1 52 11.3.3. French law • 1 53 11 .3.4.