Inside this issue:

Exclusive Economic Zone

The Current Position

The History

THE TRUTH

Front Page

The Isle of Man and the

International Convention on the Law of the Sea

The International Convention on the Law of the Sea The International Convention on the Law of the Sea

(UNCLOS) gives a coastal state sovereignty over its territorial

sea, extending up to 12 miles from its coast, plus jurisdiction

over the seas extending beyond the boundary of its territorial

sea up to the median line between it and adjacent territories.

The area between a coastal state‟s territorial sea and the

median line between it and adjacent territories is known as its

Exclusive Economic Zone or EEZ.

Constitutional Status The Isle of Man is not a sovereign state; it is a Crown

Dependency, with the same constitutional relationship with

the United Kingdom as the Channel Islands and a similar

constitutional relationship with the United Kingdom as the

Falkland Islands which is a British Overseas Territory.

In the Channel Islands the government of Jersey has

established the equivalent of an EEZ with France, and the

Falkland Islands has already established an EEZ between it

and Argentina. As a result oil exploration has already started

in the Falkland Islands.

Isle of Man EEZ Liberal Vannin has long believed that the Isle of Man should

enter into discussions with the governments of the United

Kingdom and the Republic of Ireland with a view to

establishing an EEZ for the Isle of Man. However, despite

strenuous efforts by Liberal Vannin leader Peter Karran, in

both Tynwald and The Keys, the Isle of Man government has

refused even to discuss the subject with the UK government

on the grounds that the Isle of Man is not a sovereign state.

Establishing an Isle of Man EEZ would extend the Isle of

Man‟s jurisdiction over a much larger area of the Irish Sea

including control over mineral rights and potential oil and gas

developments. There is already one gas field, and possibly

part of another, in what would be an Isle of Man EEZ were it

to be established.

Liberal Vannin believe that the government of the Isle of Man

should, as a matter of urgency, start negotiations with the

government of the UK, for which there is already a precedent,

on the establishment of an Isle of Man EEZ or its equivalent.

The Exclusive Economic Zone (EEZ) - Definition

A picture paints a thousand words and there is a simple

diagram in the centre of this booklet to help illustrate the

meaning of these terms.

The United Nations Convention on the Law of the Sea defines

the Exclusive Economic Zone and the Continental Shelf as

follows:

Exclusive Economic Zone An area beyond and adjacent to the territorial sea extending

to a distance no further than 200 nautical miles from the low

water mark, in which a coastal state has sovereign rights for

the purpose of exploring and exploiting, conserving and

managing the natural resources, whether living or non-living,

of the waters superjacent to the seabed and of the seabed

and its subsoil, and with regard to other activities for the

economic exploitation and exploration of the zone, such as

the production of energy from the water, currents and winds.

Continental Shelf—Definition The term "continental shelf" is used by geologists generally to

mean that part of the continental margin which is between the

shoreline and the shelf break or, where there is no noticeable

slope, between the shoreline and the point where the depth of

the superjacent water is approximately between 100 and 200

metres. However, this term is used in article 76 as a juridical

term. According to the Convention, the continental shelf of a

coastal State comprises the submerged prolongation of the

land territory of the coastal State - the seabed and subsoil of

the submarine areas that extend beyond its territorial sea to

the outer edge of the continental margin, or to a distance of

200 nautical miles where the outer edge of the continental

margin does not extend up to that distance. The continental

margin consists of the seabed and subsoil of the shelf, the

slope and the rise. It does not include the deep ocean floor

with its oceanic ridges or the subsoil thereof .

According to article 76, the coastal State may establish the

outer limits of its juridical continental shelf wherever the

continental margin extends beyond 200 nautical miles by

establishing the foot of the continental slope, by meeting the

requirements of article 76, paragraphs 4 – 7 of the

Convention.

A Summary of What Has Happened to Date

This is quite a complex issue and further details and

information is given on the subsequent pages but a brief

summary to date is as follows:

1966 The Isle of Man entered into a revenue sharing

agreement with the United Kingdom. This agreement

acknowledged the Isle of Man‟s jurisdiction over the territory

beyond its territorial sea and reached a revenue sharing

agreement for oil and gas exploration and the production on

the UK continental shelf.

1979 The Common Purse Agreement acknowledged the

Island‟s right to revenue from the whole of the Continental

Shelf.

November 1995 Tynwald tasked the Council of Ministers to

commence negotiations with the United Kingdom Government

with a view to establishing an Isle of Man EEZ. There

appears to have little or no action for the following fourteen

years.

December 2009 Peter Karran put forward a motion in

Tynwald calling on Government to initiate negotiations with

the United Kingdom Government with the objective of

establishing in United Kingdom and Manx law the equivalent

of an „Exclusive Economic Zone‟ for the Isle of Man,

extending from the Island‟s territorial sea in every direction to

the median line between the Island and the surrounding

islands.

The motion was amended to “consider initiating negotiations”

and “report back to Tynwald after March 2010 on the

appropriateness of the situation.”

March 2010 The Chief Minister reported to Tynwald that,

after taking legal advice, it was not possible.

After an exchange of letters between the Chief Minister and

Peter Karran a copy of the legal advice was received.

April 2010 Peter Karran wrote again to the Chief Minister

commenting on various aspects of the legal advice.

February 2011 Peter Karran raised the issue again via

questions in the House of Keys with the Chief Minister‟s final

statement being, “It is quite clear, Mr Speaker, we are not a

sovereign state. We can do nothing.”

This is a stance that Liberal Vannin rejects. You do not know

what can be achieved until you try.

The Exclusive Economic Zone (EEZ) and

the Continental Shelf

A More Complete Picture

There is little point in investigating why the Council of

Minister‟s ignored the resolution of Tynwald in 1995 to

commence negotiations with the United Kingdom Government

with a view to establishing an Isle of Man EEZ.

The fact is that little or nothing was done for fourteen years

until December 2009 when Peter Karran raised this issue in

Tynwald by means of a motion that called upon government

to “initiate negotiations with the United Kingdom Government

with the objective of establishing in United Kingdom and Manx

law the equivalent of an „Exclusive Economic Zone‟ for the

Isle of Man, extending from the Island‟s territorial sea in every

direction to the median line between the Island and the

surrounding islands.”

Following is the extract from Hansard where Peter Karran

sets out the position prior to the debate.

―In the original agreement in 1966, the government of the

United Kingdom and the Isle of Man acknowledged the Isle of

Man‘s jurisdiction over the territory beyond its territorial sea

and reached a revenue sharing agreement for oil and gas

exploration and production on the UK continental shelf.

Ceding its jurisdiction, in the agreement the Isle of Man ceded

its interest beyond its territorial sea to the United Kingdom

and, in return, received a percentage of the revenue from the

royalties and rentals levied on the oil and gas exploration and

production activities over the whole of the United Kingdom‘s

continental shelf.

The Isle of Man‘s share of the revenues and royalties were

paid through the Common Purse arrangement and, in 1966,

the Island‘s share of the Common Purse was based on the

relative populations of both countries, adjusted for the number

of visitors to the Island during the summer months.

An equitable Agreement – the Agreement of 1966 was

considered at the time, by both parties, to be fair and

equitable. The anticipated income, as reported in the P&A

consultants‘ report on the Common Purse Agreement in

1976/77, the Island‘s revenue from the oil and gas activities

was running at a relatively low level. However, by the early

1980s, they were expected to increase to some £500,000 per

year and increasing not an insignificant sum. This projected

income was a factor in the consultant‘s considerations.

The Irish Sea discoveries — during the 1980s significant gas

discoveries were made in the Irish Sea. However, since they

were outside the Island‘s territorial sea, they were of no

benefit to the Island. Under the Territorial Sea Act, to comply

with the United Nations Convention on the Law of the Sea,

(UNCLOS), 1982, the Isle of Man‘s territorial sea was

extended to 12 miles in 1991. The extension enabled the Isle

of Man to explore for oil and gas within its extended territorial

sea. However, as part of the extension, the Isle of Man was

asked to/required to, relinquish its share of royalties and

rentals from the whole of the United Kingdom continental

shelf through its Common Purse arrangement.

Comments made by the Chief Minister at the time, in July

1990, indicated that the Chief Minister was unaware of either

the 1966 agreement or the requirements of UNCLOS, and

that there were no secure, unfettered rights to, and no way we

could pursue Her Majesty‘s Government without the required

consent from the Secretary of State. The Exclusive Economic

Zone – the EEZ – the United Nations Convention on the Law

of the Sea, UNCLOS, gives coastal states the right to

jurisdiction over its exclusive economic zones (EEZ),

extending from its territorial sea to the median line between it

and its neighbouring states or up to 200 nautical miles from its

coastline, or up to the edge of the continental shelf.

Since the Isle of Man is arguably a coastal state, it has a right

to an EEZ. The constitutional status: the Isle of Man is not

part of the United Kingdom, it is a Crown dependency. In that

respect, it has the same status as the Channel Islands and a

similar status as the Falkland Islands.

In the case of the Falkland Islands, which is a British

overseas territory, the Falkland Islands has its own territorial

sea that they own and an extensive EEZ, extending to the

median line with Argentina. The Channel Islands have their

own territorial sea, but as yet, as the Isle of Man, does not

have its EEZ.

In light of the current financial problems, it is argued that, as

with the Falkland Islands, the Isle of Man should, with a sense

of urgency, establish its own EEZ, with all that entails.

In conclusion, I leave you with the following points.

The Isle of Man is not part of the United Kingdom, it is a

Crown dependency.

The Isle of Man is a coastal state, otherwise it could not

have had the territorial sea. The Isle of Man has a right

to the jurisdiction beyond its territorial sea, as evidenced

by the 1966 revenue sharing agreement.

The Isle of Man, in consequence, has a right to an EEZ,

as defined under UNCLOS.

The Isle of Man has a right to enter into international

treaties on its own behalf, as reaffirmed by Lord Bach on

his recent visit to the Isle of Man.

The establishment of an Isle of Man EEZ will probably

bring at least one existing gas field and a significant part

of another gas field within the Isle of Man‘s jurisdiction.

The establishment of an Isle of Man EEZ would

significantly increase the jurisdiction of the Isle of Man

over oil exploration activities in the Irish Sea.

It will also give the Isle of Man a significant increase in

its jurisdiction over fisheries, mining activities and make

the protection of the scallop beds much easier to monitor

and control. Initiating negotiations with the United

Kingdom on the establishment of an Isle of Man EEZ will

give the Government the opportunity to demonstrate

clearly to the United Kingdom Government that it is

being proactive, as well as reactive in the current

financial situation.

To speed up the debate, Eaghtyrane, I have some comments

on the Council of Ministers and Chief Minister‘s

memorandum.

The Chief Minister has presented a largely factual

memorandum on the subject. However, the ultimate

paragraph of the Chief Minister‘s memorandum indicates the

Chief Minister has not read the Order Paper. The last

paragraph of the Chief Minister‘s memo states that any

unilateral proposals to amend the definition of the territorial

sea in Manx legislation would, therefore, be in direct conflict

with the provisions of the Territorial Sea Act 1987 of

Parliament, as it affects the Isle of Man. This statement is

correct. However, the proposal is not to unilaterally take

action, nor to extend the territorial sea. The proposal is for the

Council of Ministers to commence negotiations with the

government of the United Kingdom, with a view to extending

the jurisdiction of the Island beyond its territorial sea and to

establish the Isle of Man‘s Exclusive Economic Zone, as

defined in UNCLOS.

The last paragraph of the Chief Minister‘s memorandum also

states: ‗In addition, any proposal to extend the Island‘s

territorial sea to beyond the 12 miles would conflict with

Article 3 of UNCLOS, as referred to above.‘

The statement is correct but the proposal is not to extend the

Island‘s territorial sea, as defined by UNCLOS, it is to extend

the jurisdiction of the Island beyond the Island‘s territorial sea

into an exclusive economic zone, as defined by UNCLOS.

I would refer Hon. Members‘ attention to the Hansard of

Tynwald, dated Wednesday, 22nd

November 1995. The Chief

Minister moved, and it was approved by Tynwald, that the

Report of the Council of Ministers on the United Nations

Convention on the Law of Sea be received and the

recommendations contained therein be approved. I have

circulated that to Hon. Members for their information.

I would also refer Hon. Members‘ attention to the Report of

the Council of Ministers on the United Nations Convention on

the Law of the Sea, signed by the Chief Minister, dated 30th

October 1995. Section 4 reports that… UNCLOS and the Isle

of Man, as follows, there are –

‗No difficulties or problems associated with the inclusion of the

Island were identified.‘

With respect to the inclusion of the Island in the UNCLOS –

‗The Island should, in principle, wish to be associated with

these aims and because of its interests in the sea, should

particularly welcome the fact of such a comprehensive and

well supported agreement.‘

In 4.3 –

‗Should it do so and/or should the Island itself wish to

establish a Contiguous Zone, negotiations between the Island

and the United Kingdom will be necessary as regards

jurisdiction in areas of potential overlap.‘

In 4.4 –

‗The concepts of EEZ and, more particularly, Continental

Shelf may be of interest to the Isle of Man. The designation of

a Continental Shelf of the Isle of Man would, however, be an

issue for negotiation with the United Kingdom Government

and the position is not prejudiced by UNCLOS nor by the

Island acceding to UNCLOS.‘

The motion simply asks that the Council of Ministers

implements Tynwald‘s instructions of 22nd November 1995,

to commence negotiations with the United Kingdom

Government with a view to establishing an Isle of Man EEZ.

What the Council of Ministers has done for the last 14 years

about this subject, might be of interest to Hon. Members. In

addition, I actually feel that, as this affects the Channel

Islands, maybe combined negotiations with the Channel

Islands could be of benefit to us.‖

There was significant comment by members of Tynwald and

the Speaker is quoted as saying, ―We have absolutely nothing

to lose. The outcome is by no means certain but I believe we

should, as a Government, be demonstrating to the people, to

the public, that actually we are prepared to start pushing the

boundaries on matters of sovereignty and sovereign

entitlements.‖

Liberal Vannin is in absolute agreement with this statement

but the Chief Minister seems to be more concerned with

“being embarrassed” which he demonstrated by using this

phrase four times during his speech.

To be certain that he was not to “be embarrassed” he

persuaded Tynwald to vote for his amendments which were to

“consider initiating” rather than the original “initiate” and “to

report back to Tynwald at the March 2010 sitting on the

appropriateness of undertaking such negotiations.”

The Chief Minister reported to Tynwald at the March sitting

and the following is an extract from Hansard of his report:

―Mr President, the Council of Ministers has carefully

considered the resolution and has, as a consequence,

received firm legal advice that, given the Isle of Man‘s current

constitutional status, it is not legally possible under

international law for the Isle of Man to be treated as though it

were a fully independent sovereign state. It is not, therefore,

possible to establish the equivalent of an Exclusive Economic

Zone for the Isle of Man. Mr President, the Council of

Ministers has considered whether it would be possible for the

Isle of Man and the United Kingdom to come to an agreement

in domestic law, whereby the United Kingdom transferred to

the Isle of Man its rights under its EEZ, that is the Exclusive

Economic Zone, or some of those rights to the extent of the

United Kingdom‘s EEZ, which is adjacent to the Isle of Man‘s

territorial waters. Any such domestic agreement would have

no effect in international law. Furthermore, whilst being

theoretically possible, the United Kingdom would be

required not only to surrender natural resources which belong

to the UK taxpayer, but also to assume responsibility under

international law for the consequences of any acts or

omissions of the Isle of Man which created disputes with

neighbouring nations. Council considered what negotiating

position the Island could adopt to persuade the United

Kingdom, not only to give up assets, but also to accept

potential liabilities and concluded that, given the current

economic and political climate in the United Kingdom, there

was no acceptable position which it could adopt to progress

the matter as envisaged by the motion.‖

Peter Karran stated that he would be interested to see the

legal opinion. Whilst waiting for sight of the legal opinion

Peter Karran wrote to the Chief Minister setting out his

concerns. Part of that letter is reproduced below.

―I listened to your statement at the March Tynwald on the Isle

of Man equivalent of an Exclusive Economic Zone (EEZ) with

great sadness, since it typified your government‘s total

inability to take any initiative on any subject whatsoever.

Furthermore, I am still awaiting details of the firm legal advice,

promised by you at the March Tynwald, and upon which your

statement was based.

In your statement you advised that you have received firm

legal advice that ―…it is not legally possible under

international law for the Isle of Man to be treated as though it

were a fully independent sovereign state‖ and ―…It is not,

therefore, possible to establish the equivalent of an Exclusive

Economic Zone for the Isle of Man.‖ Whilst it may or may not

be possible, under international law, for the Isle of Man to be

treated as a fully independent sovereign state, that does not

mean, or even imply, that ―…It is not therefore possible to

establish the equivalent of an Exclusive Economic Zone for

the Isle of Man‖. Could you please advise what international

lawyer, if any, has provided this advice?

Any legal advice on the subject of an Isle of Man EEZ/

Continental Shelf should cover, inter alia, the following:-

In 1966 it was accepted that the Isle of Man could

generate its own Continental Shelf under the Geneva

Convention 1958. If, in 1966, it was considered that the

Isle of Man could generate its own Continental Shelf why

can it no longer do so? In 1966, the Common Purse Agreement accepted that the

Isle of Man, under the Geneva Convention, had territorial

rights beyond its territorial sea. In consequence the Isle of

Man was granted a percentage of all royalties and rentals

from the exploration for and production of minerals from

the whole of the UK Continental Shelf. If the Isle of Man

has no rights under international law why did the United

Kingdom agree to this? The United Nations Convention on the Law of the Sea

(UNCLOS) applies to coastal States not sovereign States.

Why should UNCLOS suddenly apply only to sovereign

States?

By 1995, the UK Government had paid the Isle of Man

Government £21.4 million under the 1996 Common Purse

Agreement. Why did it do this if the Isle of Man had no

right to generate its own Continental Shelf?

In 1995, or thereabout, the Isle of Man, along with

Jersey and Guernsey, acceded to UNCLOS. How could

it do this if the Isle of Man, along with Jersey and

Guernsey, has no rights in international law?

A report to Tynwald, by the then Chief Minister, entitled

―The United Nations Convention on the Law of the Sea,

dated 30th October 1995 concluded that ―…The

Convention may, in fact, serve to reinforce the legitimacy

of Island‘s territorial sea internationally as the

Convention specifically recognises that a territorial sea

may attach to an island. Was the Chief Minister totally

wrong and if so why?

The Chief Minister‘s report of October 1995

recommended that negotiations be opened with the

United Kingdom Government to establish ―…whether

agreement on a Continental Shelf of the Isle of Man can

be reached‖. This was the equivalent of an EEZ since at

that time the UK had not declared a contiguous zone.

Were negotiations ever initiated with the UK and if not

why not? If so what were the results of those

negotiations and why was an Isle of Man Continental

Shelf never agreed?

The Falkland Islands, with a similar constitutional

relationship with the UK to the Isle of Man (i.e. it is not a

sovereign state but a British Overseas Territory) has

established an EEZ extending to the median line

between it and Argentina. How is this possible in

international law if only sovereign states can establish

an EEZ? Is the Falkland Islands EEZ illegal under

international law?

The States of Jersey with an identical constitutional

relationship with the UK to the Isle of Man, established,

in 1997, on the basis of UNCLOS, the equivalent of an

EEZ with France. Why is Jersey able to establish the

equivalent of an EEZ if the Isle of Man can not?

All of the above were known, or should have been known, to

both you and your Council of Ministers at the December

Tynwald. Why has it taken you so long to report back to

Tynwald?

In your statement you state that any agreement on the

establishment of an Isle of Man EEZ would require the United

Kingdom to ―…surrender natural resources that are owned by

the UK taxpayer‖ You appear to have totally missed the point.

The point is that, under international law the resources

belong to the Isle of Man taxpayer not the UK taxpayer,

but because of continued lack of initiative from the Isle of Man

government they are being exploited by the UK taxpayer.

In your statement you state that the UK, under international

law, would have to accept responsibility for any acts or

omissions of the Isle of Man if the Isle of Man were to be

granted an EEZ. Have the UK accepted responsibility under

international law for the acts or omission of the government of

the States of Jersey in its EEZ equivalent? Adopting the same

argument, do the UK government accept responsibility for the

acts or omissions of the governments of Guernsey, Jersey

and the Isle of Man in their respective territorial seas?‖

Peter Karran received a copy of the legal opinion but perhaps

more telling would have been the remit given when the legal

opinion was requested. It is often the case that the answer

you receive is dependent on how the question is phrased.

This is amply illustrated by Peter Karran‟s response to the

Chief Minister regarding the legal opinion. Below is an extract

from that letter.

―I have now, at long last, received the Attorney General‘s

(AG‘s) paper on the Isle of Man Equivalent of the EEZ with

which I largely agree.

The AG‘s paper concludes ―…The Isle of Man cannot,

therefore, establish an EEZ for itself and it would be a fruitless

task to seek to establish for the Isle of Man, outside its

extended territorial sea, rights equivalent to those which are

available to a coastal state under an EEZ within the meaning

of UNCLOS‖. I completely agree with this statement. Why else

do you think Tynwald asked you to NEGOTIATE with the

Government of the United Kingdom to establish the

EQUIVALENT of an Isle of Man EEZ. Did you not even read

the motion passed by Tynwald?

As outlined in my previous letter to you, there is a long history

of negotiations between the Isle of Man Government and the

Government of the UK on this and related topics, most

notably in 1966 with the Common Purse Agreement and

again in 1979 also with the Common Purse Agreement. I am

told that Sir Charles Kerruish even tried to negotiate for the

Island a share of Petroleum Revenue Tax, Advanced

Petroleum Revenue Tax, and Special Petroleum Duty. In this

he was unfortunately unsuccessful, largely because at that

time there was no oil or gas production in the Irish Sea.

Your supine approach to all dealings with the Government of

the United Kingdom, exemplified by the Reciprocal Health

Agreement, the Common Purse Agreement and the

establishment of the equivalent of an Isle of Man EEZ is not in

the interests of the Manx people. All you have been asked to

do is TALK to the Government of the United Kingdom and

report back. TALK costs nothing and could achieve a lot, as it

has in the past.

The resources, currently being exploited in the Irish Sea for

the benefit of the UK taxpayer, would, and should, under

international law, be being exploited for the benefit of the Isle

of Man taxpayer and not the UK taxpayer, were it not for an

outdated colonial anachronism. It was for this reason that I

suggested that, failing agreement, the matter could be

referred to the United Nations Committee on Colonialism.

I therefore repeat my request for you either to take action on

the above or to resign, in the interests of the people of the Isle

of Man.‖

This matter is of vital importance to the Isle of Man and the

effects will be felt for many generations. With this in mind,

Peter Karran raised the subject again in Question Time in the

House of Keys on 22 February 2011. His questions were:

What his Government‘s policy is with regard to achieving

a Manx Exclusive Economic Zone extending to the

median line between the Isle of Man and the adjacent

islands;

What efforts have been made and what progress has

been made to date towards achieving this objective;

If he will arrange for the matter to be discussed at the

next meeting of the British Irish Council in the context of

the increasing powers being given by the UK

Government to the devolved assemblies?

Given the Chief Minister‟s intransigent stance previously it will

come as no surprise that his closing statement was, ―It is

quite clear, Mr Speaker, we are not a sovereign state, we can

do nothing, sir.‖

After the session of the House of Keys Peter Karran

commented, “I am not surprised by the statements today.

They are so typical of this Government. If you try to achieve

something and don‟t succeed it is one thing but not to be

prepared to even try is unforgivable. I just hope that their

continued bleating of “We can‟t do anything” will be

remembered by the electorate in September and that votes

will be cast to elect people who are at least prepared to have

a go.”

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