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International Royalty And Continental Shelf Limits: Emerging Issues For The Canadian Offshore, Aldo Chircop, Bruce Marchand

Dalhousie Law Journal

Article 82 of the United Nations Convention on the Law of the Sea, 1982, provides a novel obligation in international law that is likely to become operative within the decade. It establishes an international royalty on production from the utilization of non-living resources (such as oil and gas) on the continental shelf beyond 200 nautical miles, but within the outer limit of a coastal state's jurisdiction. Producing states will have an obligation to make payments or contributions in kind that are calculated on the basis of an incremental rate applicable as from the sixth year of production and reaching a …