U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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79–118

" ! SENATE 106TH CONGRESS

2d Session

TREATY DOC.

2000

106–39

TREATY WITH MEXICO ON DELIMITATION OF

CONTINENTAL SHELF

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

TREATY BETWEEN THE GOVERNMENT OF THE UNITED STATES

OF AMERICA AND THE GOVERNMENT OF THE UNITED MEXICAN

STATES ON THE DELIMITATION OF THE CONTINENTAL SHELF

IN THE WESTERN GULF OF MEXICO BEYOND 200 NAUTICAL

MILES, SIGNED AT WASHINGTON ON JUNE 9, 2000.

JULY 27, 2000.—Treaty was read the first time, and together with the

accompanying papers, referred to the Committee on Foreign Relations

and ordered to be printed for the use of the Senate.

(III)

LETTER OF TRANSMITTAL

THE WHITE HOUSE, July 27, 2000.

To the Senate of the United States:

With a view to receiving the advice and consent of the Senate to

ratification, I transmit herewith the Treaty Between the Government of the United States of America and the Government of the

United Mexican States on the Delimitation of the Continental Shelf

in the Western Gulf of Mexico beyond 200 nautical miles. The

Treaty was signed at Washington on June 9, 2000. The report of

the Department of State is also enclosed for the information of the

Senate.

The purpose of the Treaty is to establish a continental shelf

boundary in the western Gulf of Mexico beyond the outer limits of

the two countries’ exclusive economic zones where those limits do

not overlap. The approximately 135-nautical-mile continental shelf

boundary defines the limit within which the United States and

Mexico may exercise continental shelf jurisdiction, particularly oil

and gas exploration and exploitation.

The Treaty also establishes procedures for addressing the possibility of oil and gas reservoirs that extend across the continental

shelf boundary.

I believe this Treaty to be fully in the interest of the United

States. Ratification of the Treaty will facilitate the United States

proceeding with leasing an area of continental shelf with oil and

gas potential that has interested the U.S. oil and gas industry for

several years.

The Treaty also reflects the tradition of cooperation and close ties

with Mexico. The location of the boundary has not been in dispute.

I recommend that the Senate give early and favorable consideration to this Treaty and give its advice and consent to ratification.

WILLIAM J. CLINTON.

(V)

LETTER OF SUBMITTAL

DEPARTMENT OF STATE, Washington, July 5, 2000.

The PRESIDENT,

The White House.

THE PRESIDENT: I have the honor to submit to you the Treaty between the Government of the United States of America and the

Government of the United Mexican States on the Delimitation of

the Continental Shelf in the Western Gulf of Mexico beyond 200

Nautical Miles (the ‘‘Treaty’’). The Treaty was signed in Washington on June 9, 2000. I recommend that the Treaty be transmitted to the Senate for its advice and consent to ratification.

The Treaty defines the limits within which each Party may exercise its sovereign rights over the seabed and subsoil of the continental shelf, in the area in the western Gulf of Mexico beyond the

limits of their respective exclusive economic zones (EEZs), in the

area known as the ‘‘Western Gap,’’ for the purpose of exploring the

shelf and exploiting its natural resources, particularly oil and gas.

The boundaries separating the exclusive economic zones of the

Parties were established in the Treaty on Maritime Boundaries between the United States of America and the United Mexican

States, signed at Mexico City May 4, 1978, which entered into force

November 13, 1997 (‘‘1978 Treaty’’).

The Treaty is the culmination of negotiations that followed the

1978 Treaty’s entry into force. It achieves the U.S. objectives of delimiting a boundary consistent with the approach taken in previous

U.S.-Mexico boundary treaties, while at the same time adequately

addressing issues of oil and natural gas reservoirs in the area covered under the Treaty. In recommending Senate advice and consent

to the ratification of the 1978 Treaty establishing the EEZ maritime boundary, the Senate Foreign Relations Committee noted:

the untapped reserves of crude oil and natural gas in the

Gulf of Mexico along the 200 nautical mile boundary and

the technological advances that have made it more likely

that U.S. companies will recover these oil and gas deposits.

* * * Delimitation of the western gap has become increasingly important to U.S. interests as petroleum exploration

has moved into deeper waters.

The Committee urged the Administration ‘‘to commence negotiations on the western gap without delay, once this treaty enters into

force.’’ (Sen. Exec. Rpt. No. 105–4, pages 5–6, Oct. 22, 1997.)

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Breadth of the continental shelf

Mexico and the United States are parties to the 1958 Geneva

Convention on the Continental Shelf (the ‘‘1958 Convention’’). Article 1 of the 1958 Convention provides that the continental shelf of

a coastal State extends beyond a depth of 200 meters to ‘‘where the

depth of superjacent waters admits of the exploitation of the natural resources’’ of the shelf. The 1982 United Nations Convention

on the Law of the Sea, to which Mexico is a party and which the

United States considers reflects customary international law in this

respect, provides a more scientifically-based definition of the continental shelf. Article 76 provides that the continental shelf of a

coastal State comprises the greater of either the area in which the

seabed and subsoil of the submarine areas extend beyond a country’s territorial sea throughout the natural prolongation of its land

territory to the outer edge of the continental margin, or the area

to a distance of 200 nautical miles from the baselines from which

the breadth of the territorial sea is measured. Under both definitions, the coastal State has exclusive control over the exploration

and exploitation of the natural resources, including oil and gas, of

the continental shelf.

With respect to areas beyond 200 nautical miles from coastal

baselines, the 1958 Convention and the 1982 United Nations Convention on the Law of the Sea provide that certain criteria must

be met to qualify as continental shelf. During the negotiations,

both sides agreed that all of the seabed and subsoil of the submarine areas beyond the 200-mile EEZ limit in the Western Gulf

of Mexico meet the legal requirements described in both Conventions.

The treaty consists of nine articles and two annexes.

Continental shelf boundary

Article I describes the continental shelf boundary between the

United States and Mexico in the Western Gulf of Mexico beyond

200 nautical miles as geodetic lines connecting the listed 16 turning and terminal points. In keeping with the methodology used in

previous U.S.-Mexico maritime boundary treaties, this line represents an equidistant line drawn from the respective U.S. and

Mexican coastal baseline, including the baselines of islands.

Article II sets out the technical parameters of the boundary. It

states that, for the purposes of the boundary, the 1983 North

American Datum (‘‘NAD 83’’) and the International Earth Rotation

Service’s Terrestrial Reference Frame (‘‘ITRF 92’’) are considered

identical, and that the terminal points are the terminal points of

the 1978 Treaty. This article is needed to ensure that the Treaty

may be applied uniformly and accurately by the United States,

Mexico and all other users. Further, the article states that, for the

purpose of illustration only, a map depicting the boundary is attached to the treaty as Annex 1.

Article III sets forth the agreement of the Parties that, north of

the boundary, Mexico will not, and south of the boundary, the

United States will not, claim or exercise for any purpose sovereign

rights or jurisdiction over the seabed and subsoil. This provision is

contained in all modern maritime boundary treaties to which the

United States is a party.

VII

Transboundary reservoirs

In addition to the provisions typically found in maritime boundary delimitation agreements, the Treaty contains a new set of provisions contained in Articles IV and V dealing with the subject of

possible oil or natural gas (hereinafter, ‘‘petroleum’’) reservoirs that

may extend across the continental shelf boundary (hereinafter,

‘‘transboundary reservoirs’’). These provisions, among other things,

create a framework by which the Parties can exchange information

to help determine the possible existence of transboundary reservoirs. Should any transboundary reservoir be identified, the Parties commit to address the equitable and efficient development of

any such reservoirs. Those procedures are described in more detail

below.

Article IV(1) creates a buffer zone, called ‘‘the Area,’’ which comprises a continental shelf area of 1.4 nautical miles on each side

of the boundary. (For the United States, the Area comprises 9.77

percent of its portion of the Western Gap.) Within the Area, the

Parties agree to a ten-year moratorium on petroleum drilling or exploitation. By its terms, the moratorium does not apply to other

continental shelf activities. Each Party’s right to authorize or permit petroleum drilling or exploitation outside the Area within the

Western Gap on its side of the boundary is unaffected by this moratorium.

Article IV(2) provides that the Area is shown on an illustrative

map at Annex 2 of the Treaty.

Article IV(3) establishes that the Parties may modify the 10-year

moratorium applicable in the Area by mutual agreement through

an exchange of diplomatic notes. This provision will enable the Parties to shorten or to extend the duration of the moratorium should

they both agree.

Article IV(4) requires each Party, on its side of the boundary

within the Area and in accordance with its national laws and regulations, to facilitate requests from the other Party to authorize geological and geophysical studies for determining the possible presence and distribution of transboundary reservoirs.

Article IV(5) requires that each Party, with respect to the Area

in its entirety and in accordance with its national laws and regulations, share geological and geophysical information in its possession

in order to determine the possible existence and location of

transboundary reservoirs.

Article IV(6) obliges each Party, if it has knowledge of the existence or possible existence of any transboundary reservoir to notify

the other Party.

During the course of the negotiations each Party supplied the

other a written summary of their respective national laws and regulations pertaining to offshore oil and gas development that would

currently be applicable pursuant to the terms of Article IV.

Article V of the Treaty details a mechanism for communication

and cooperation between the Parties with respect to the Area and

the possible existence and location of transboundary reservoirs.

Article V(1) provides that that the Parties, with respect to the

Area during the ten year moratorium, shall:

—meet periodically for the purpose of identifying, locating, and

determining the geological and geophysical characteristics of

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transboundary reservoirs as geological and geophysical information is generated that facilitates the Parties’ knowledge

about the possible existence of such reservoirs (including information provided under Article IV(5);

—seek to reach agreement for the efficient and equitable exploitation of such transboundary reservoirs; and

—consult within sixty days of receipt of a written request by a

Party through diplomatic channels, to discuss matters related

to possible transboundary reservoirs.

Article V(2) further requires, with respect to the Area, that following the ten-year moratorium, the Parties shall:

—inform the other Party both of its decisions to lease, license,

grant concessions, or otherwise make available, portions of the

Area for petroleum or natural gas exploration or development

and when petroleum or natural gas resources are to commence

production; and

—ensure that entities it authorizes to undertake activities in the

Area observe the terms of the Treaty.

Dispute resolution and consultations

Article VI requires the Parties to consult to discuss any issue regarding the interpretation or implementation of the Treaty upon

the written request by a Party through diplomatic channels.

Article VIII provides that any dispute concerning the interpretation or application of the Treaty must be resolved by negotiation

or other peaceful means as may be agreed upon by the Parties.

Final clauses

Article VII provides that the boundary established in the Treaty

does not affect or prejudice in any manner the positions of either

Party with respect to the extent of internal waters, of the territorial sea, of the high seas, or of sovereign rights or jurisdiction for

any other purpose. This is a standard provision in modern U.S.

maritime boundary treaties.

Article IX provides that the Treaty is subject to ratification and

that it will enter into force on the date the Parties exchange instruments of ratification.

No new legislation is needed for the United States to meet its obligations under the treaty.

All interested agencies and departments join the Department of

State in recommending that the Treaty delimiting the continental

shelf boundary beyond 200 nautical miles between Mexico and the

United States be transmitted to the Senate as soon as possible for

its advice and consent to ratification.

Respectfully submitted,

MADELEINE ALBRIGHT.

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