ACT No. XXVIII of 2014 AN ACT to make provision as to the exploration and exploitation of the continental shelf and for matters connected with those purposes.

I assent.

M ARIE L OUISE

(L.S.)

C OLEIRO P RECA

President

8th August, 2014

ACT No. XXVIII of 2014

AN ACT to make provision as to the exploration and

exploitation of the continental shelf and for matters connected with

those purposes.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same as follows:-

The short title of this Act is the Continental Shelf Act, Short title.

2014.

In this Act, unless the context otherwise requires -

Interpretation.

"appropriate action” has the same meaning as is assigned to it Cap. 226.

by the Territorial Waters and Contiguous Zone Act;

"baselines" means the lines, joining appropriate points along the

coast of Malta, from which the breadth of the territorial waters is

measured;

"continental shelf" means the seabed and subsoil of the

submarine areas that extend beyond the territorial waters of Malta to a

limit established in accordance with international law, measured from

the baselines from which the breadth of the territorial waters is

measured; so however that where in relation to States of which the

coast is opposite that of Malta it is necessary to determine the

boundaries of the respective continental shelves, the boundary of the

continental shelf shall be that determined by agreement between

Malta and such other State or States or, in the absence of agreement,

the median line, namely a line every point of which is equidistant

from the nearest points of the baselines from which the breadth of the

territorial waters of Malta and such other State or States is measured

Provided that until the agreement mentioned in the

preceding paragraph comes into force, any licences issued under this

Act or any regulations made thereunder for the exploration and

exploitation of natural resources of the continental shelf of Malta

shall only apply to the area lying on the Maltese side of the median

line between the coast of Malta and coast belonging to the opposite

State or States

Provided further that nothing shall preclude the

Government of Malta from entering into any cooperative

arrangements, such as joint development agreements, revenue sharing

agreements and international unitisation agreements, with

neighbouring States for the purpose of exploring and exploiting the

natural resources on the continental shelf

Provided further that the Government of Malta may extend

the continental shelf boundary beyond the median line in accordance

with international law;

"designated area" means any area, designated by the Prime

Minister by means of an order published in the Gazette, within which

the rights mentioned in article 3(1) are exercisable;

"Prime Minister" shall mean the Prime Minister or any other

person designated by the Prime Minister, and this in addition to the

provisions of article 5;

"licence" has the same meaning as assigned to it in the

Petroleum (Production) Act;

"Malta" has the same meaning as is assigned to it by article 124

of the Constitution of Malta;

"maritime enforcement officer" has the same meaning as is

assigned to it by article 2 of the Territorial Waters and Contiguous

Zone Act;

"mineral resources" has the same meaning as in the Malta

Resources Authority Act;

"natural resources" means -

(a)

the mineral, energy and other non-living resources

of the sea bed and subsoil; as well as

(b)

the living organisms belonging to sedentary species;

"petroleum" has the same meaning as in the Petroleum Cap. 156.

(Production) Act;

"safety zone" means an area around any artificial island,

installation or structure, designated for the purpose of ensuring their

safety as well as safety of navigation around them;

"sedentary species" means organisms which at the harvestable

stage, either are immobile on or under the seabed or are unable to

move except in constant physical contact with the seabed or subsoil;

"territorial waters" has the same meaning assigned to it by

article 3 of the Territorial Waters and Contiguous Zone Act.

(1) The Government of Malta exercises over the Exploration and

continental shelf sovereign rights for the purpose of exploring it and exploitation

the continental

exploiting its natural resources.

shelf.

(2) The Government of Malta shall have the exclusive right to

exploit the subsoil of the continental shelf, as well as to authorise and

regulate any activity, including but not limited to drilling and

tunnelling, on the continental shelf for all purposes, irrespective of

the depth of water above the said subsoil.

(3) The rights referred to in sub-article (1) are exclusive in the

sense that if the Government of Malta does not explore the

continental shelf or exploit its natural resources, no one may

undertake the activities referred to in the preceding sub-article

without the express written consent of the Prime Minister.

(4) For the purposes of sub-article (1), all relevant provisions

of the Petroleum (Production) Act with respect to exploration for and Cap. 156.

exploitation of petroleum in Malta shall apply mutatis mutandis.

(5) In relation to mineral resources, with respect to which the

rights mentioned in sub-article (1) are exercisable, the provisions of

the Malta Resources Authority Act in relation to mineral resources in Cap. 423.

Malta shall apply mutatis mutandis.

(6) In relation to sedentary species with respect to which the

rights mentioned in sub-article (1) are exercisable, the provisions of

the Fisheries Conservation and Management Act, as far as they are Cap. 425.

applicable and with any necessary modifications, shall, to the extent

that they relate to sedentary species in Malta, apply mutatis mutandis.

(7) The Prime Minister may from time to time by order

published in the Gazette designate any area as an area within which

the rights mentioned in sub-article (1) are exercisable, and any area so

designated in this Act shall be a designated area.

(1) The Prime Minister may, from time to time, make

regulations with respect to all or any one or more of the following

purposes

(a) regulating the exploration and exploitation of the

natural resources of the continental shelf;

(b) regulating or prohibiting the construction, erection,

placing, or use of artificial islands, installations, structures or

devices in, on, or above the continental shelf

(i) in connection with the exploration of the

continental shelf or that part thereof or the exploitation of

its natural resources, or

(ii) in places where they could cause interference

with the rights of the Government of Malta to explore and

exploit the natural resources of the said continental shelf,

or

(iii) in places where they could cause interference

with the use of recognised sea lanes essential to

international as well as coastwise navigation;

(c)

establishing safety zones around any such artificial

islands, installations, structures or devices in, on, or above the

continental shelf;

(d) regulating the laying, maintenance and monitoring

of submarine cables and pipelines;

(e)

regulating marine scientific research;

(f)

regulating carbon capture and storage;

(g) prescribing such measures as he considers necessary

in any such safety zone for the protection of the artificial island,

installation, structure or device with respect to which the safety

zone is established;

(h) regulating or prohibiting the entry of ships into any

such safety zone, subject to any exceptions provided by the

order from entering, without his consent, such part of that area

as may be specified in the order;

(i)

prescribing measures to be taken in any such safety

zone for the protection of the living resources of the sea and the

natural resources of the continental shelf from harmful agents;

(j)

prescribing the notice to be given of the

construction, erection, or placing of artificial islands,

installations, structures or devices in, on, or above the

continental shelf;

(k) prescribing the permanent means to be installed for

the purpose of giving warning to shipping and aircraft of the

presence of artificial islands, installations, structures or devices

in, on, or above the continental shelf;

(l)

providing for the removal of artificial islands,

installations, structures or devices constructed, erected, or

placed in, on, or above the continental shelf which have been

abandoned or have fallen into disuse;

(m) prohibiting or restricting any

exploration

or

exploitation of -

(i)

the continental shelf or any specified part

thereof; or

(ii) its natural resources

which in the opinion of the Government of Malta could result in

any unjustifiable interference with navigation, fishing, or the

conservation or management of the natural resources of the sea,

including the seabed and subsoil, or which could interfere with

national defence or with marine scientific or other research or

with submarine cables or pipelines;

(n)

protecting the marine environment;

(o) providing for such matters as are necessary,

including the prescription of fees and levying of taxes, for

giving full effect to this Act and for the due administration

thereof;

(p) regulating licensing procedures with regard to

activities carried out on the continental shelf; and

(q) prescribing

the

minimum

and

maximum

punishments, whether by way of fine (multa) or of

imprisonment, to be applied in respect of any contravention or

non-observance of any regulation made under this article

Provided that any punishment prescribed in the

regulations made under this sub-article shall not exceed a fine

(multa) of two million euro (€2,000,000), and shall not exceed a

term of five years imprisonment, or both, in respect of any

contravention or non-observance of any such regulation.

(2) By virtue of this article, the Prime Minister is also

empowered to make any regulations or orders as may be required for

the proper implementation and administration of this Act and any of

the regulations made thereunder.

(3) In this article, the term "continental shelf" includes the sea-

bed and subsoil of the submarine areas within the limits of the

internal waters and the territorial waters of Malta

Provided that nothing in this article shall affect the rights

and powers of the Government of Malta under the appropriate laws in

respect of areas within the limits of the territorial waters of Malta.

For the purposes of the implementation of the provisions

of this Act and regulations made thereunder, the Prime Minister may

designate any person as a competent authority for the purposes of the

implementation and for the exercise of any rights and duties therein.

(1)

Any act or omission which -

(a)

involves or takes place on, under or above an

artificial island, installation, structure or device on the

continental shelf or any waters within five hundred metres of

such artificial island, installation, structure or device, and

(b) would, if taking place in any part of Malta,

constitute an offence under the law in force in Malta,

shall be treated for the purposes of that law and of any other law in

force in Malta as taking place in Malta.

(2) For the purposes of civil jurisdiction exercisable by the

courts of Malta, any artificial island, installation, structure or device

and any waters within five hundred metres thereof shall be treated as

if they were situated in Malta.

(3) Any maritime enforcement officer shall on any artificial

island, installation, structure or device in a designated area have all

powers, protection and privileges which he has in Malta.

For the purpose of ensuring compliance with this Act, any Appropriate

maritime enforcement officer may, where he has reason to believe action

maritime

that an offence has been committed under this Act and any enforcement

officers.

regulations made hereunder, take any appropriate action necessary.

The provisions of sub-articles (2) to (6), both inclusive, of Right of hot

article 8 of the Territorial Waters and Contiguous Zone Act shall pursuit.

apply mutatis mutandis to any reasonable suspicion of an offence

under this Act or any regulations made thereunder.

(1) Without prejudice to the provisions of sub-articles Repealing and

transitory

(2) and (3), the Continental Shelf Act is hereby repealed .

provisions.

(2) Any licences or permits issued under the Continental Shelf

Act shall continue to be regulated by the provisions of the said Act

until their date of expiry.

(3) Any order or regulation made under the Continental Shelf

Act shall remain in force as if they were made under this Act until

such time as they may be amended or revoked by orders or

regulations made under the provisions of this Act.

(4) Any other activity of whatsoever nature made under the

Continental Shelf Act shall remain in force.

(5) Any reference to "the Continental Shelf Act" in any

licence, contract or agreement relating to the exploration and

exploitation of petroleum, to which the Government of Malta is a

party, which was concluded prior to the coming into force of this Act,

shall continue to be construed as a reference to the Continental Shelf

Act, 1966.

Passed by the House of Representatives at Sitting No. 184 of the

25th July, 2014.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk of the House of Representatives