Licensing of Private Land Remote-Sensing Space Systems, 24474-24491 [06-3841]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 71, Number 79 (Tuesday, April 25, 2006)]
[Rules and Regulations]
[Pages 24474-24491]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3841]



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Part III





Department of Commerce





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National Oceanic and Atmospheric Administration



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15 CFR Part 960



Licensing of Private Land Remote[dash]Sensing Space Systems; Final Rule

Federal Register / Vol. 71, No. 79 / Tuesday, April 25, 2006 / Rules 
and Regulations

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 960

[Docket No.: 050204028-6015-02]


Licensing of Private Land Remote-Sensing Space Systems

AGENCY: National Oceanic and Atmospheric Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The National Oceanic and Atmospheric Administration (NOAA) 
issues regulations revising the agency's requirements for the 
licensing, monitoring and compliance of operators of private Earth 
remote sensing space systems under Title II of the Land Remote Sensing 
Policy Act of 1992 (the Act). These regulations implement the 
provisions of the Act, as amended by the 1998 Commercial Space Act, and 
the 2003 U.S. Commercial Remote Sensing Policy. They are also derived 
from experience gained since August 2000 with respect to the licensing 
of commercial remote sensing space systems, and include improvements 
that take into account public comments received on the regulations. 
They are intended to facilitate the development of the U.S. commercial 
remote sensing industry and promote the collection and widespread 
availability of Earth remote sensing data, while preserving essential 
U.S. national security interests, foreign policy and international 
obligations.

DATES: This rule is effective May 25, 2006.

FOR FURTHER INFORMATION CONTACT: Douglas Brauer at (301) 713-2024, ext. 
213 or Glenn Tallia, NOAA, Office of the General Counsel, Office of the 
Senior Counselor for Atmospheric and Space Services and Research, at 
(301) 713-9681.

SUPPLEMENTARY INFORMATION: Title II of the Act, 15 U.S.C. 5601 et seq., 
as amended by Public Law 105-303, authorizes the Secretary of Commerce 
(the Secretary) to issue licenses for the operation of private remote 
sensing space systems. The authority to issue licenses has been 
delegated from the Secretary to the Administrator of NOAA (the 
Administrator) and redelegated to the Assistant Administrator for 
Satellite and Information Services (the Assistant Administrator). On 
July 31, 2000, NOAA published in the Federal Register an interim final 
rule captioned Licensing of Private Land Remote-Sensing Space Systems; 
Interim Final Rule (See 65 FR 46822). These regulations, which were 
effective on August 30, 2000, set forth the agency's requirements for 
the licensing, monitoring and compliance of operators of private Earth 
remote sensing space systems under the Act. Since the publication of 
the regulations: two new commercial remote sensing satellites have been 
successfully launched and are now operational; NOAA has issued ten new 
licenses for increasingly advanced remote sensing space systems, 
bringing the total to 23 licenses issued; and, in April 2003, the 
President announced a new policy on U.S. commercial remote sensing from 
space. On May 20, 2005, NOAA issued a proposed rule modifying the July 
31, 2000 interim final rule to take into account these developments 
(See 70 FR 29380). Specifically, NOAA proposed amendments to update the 
regulations to reflect: (1) The new U.S. policy on commercial remote 
sensing from space; (2) experience gained since August 2000 with 
respect to the licensing of commercial remote sensing space systems; 
and (3) improvements that take into account public comments received on 
the interim final rule. The regulations published herein update the 
July 2000 interim final rule and address the public comments received 
in response to the proposed rule. These regulations apply to all 
existing licenses, as well as to all pending and future applications to 
operate a private remote sensing space system. They are intended to 
promote the development of the U.S. commercial remote sensing industry 
and promote the collection and widespread availability of earth remote 
sensing data while protecting U.S. national security concerns, foreign 
policy and international obligations. NOAA encourages and promotes the 
development of advanced technologies in the remote sensing industry, 
but recognizes that national security concerns, foreign policy and 
international obligations of the United States may mandate that 
limitations be imposed on a system's operation.

1. Major Substantive Issues Raised by Public Comment

    NOAA received six sets of comments regarding the May 20, 2005 
proposed rule from a wide range of interests in industry, academia, and 
government. Most of the issues raised can be summarized as falling 
under one of the following categories:
    (1) Definitions;
    (2) License Term and;
    (3) License Conditions.

Definitions

    One commenter recommended that the term ``Adversary'' be added as a 
defined term. The rationale for this recommendation was that the 
regulations should provide standards for when the U.S. Government will 
interrupt normal commercial operations. NOAA does not agree with this 
recommendation. Appendix 2 of these regulations addresses the 
procedures the U.S. Government will follow if it determines normal 
commercial operations must be interrupted due to the possibility that 
national security or international obligations and/or foreign policies 
may be compromised. The decision regarding under what circumstances 
normal commercial operations may be interrupted is addressed in 
national security strategy documents and is outside the scope of these 
regulations.
    One commenter recommended to avoid confusion with the National 
Archive and Records Administration, NOAA should not refer to the 
National Satellite Land Remote Sensing Data Archive as the ``Archive''. 
NOAA agrees with this recommendation and will now make reference to 
National Satellite Land Remote Sensing Data Archive throughout the 
regulations.
    One commenter noted that the definition of Data Protection Plans 
was overly vague, onerous, and unrealistic. NOAA has added the word 
``appropriate'' to the definition to make it clear that Data Protection 
Plans will differ based on the design and capabilities of the licensed 
system. As NOAA licenses more advanced systems, greater emphasis has 
been placed on protection of the data. As a result, NOAA has provided, 
and will continue to provide, to each licensee a Data Protection Plan 
template and will continue to work closely with the licensees to 
develop plans which address the specific security issues of each 
licensee.
    One commenter recommended the definition of license should make 
clear that a NOAA issued license cannot be used as collateral in a loan 
agreement, or used in any way that would, through a financial 
arrangement, place the license in jeopardy. NOAA agrees with this 
recommendation and has added a new condition in Section 960.11 
providing that a license cannot be mortgaged, sold, or pledged as 
collateral. This does not limit the licensee's ability, however, to use 
tangible assets of the company as collateral. One of the requirements 
when issuing a NOAA license to operate a remote sensing space system is 
that

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the Secretary of Commerce ensures the license holder will uphold the 
national security and foreign policy concerns of the United States. 
This assurance is made in part through the pre-licensing audit of the 
applicant. If a licensee were able to pledge the license as collateral 
to a third party the Secretary of Commerce would not be able to make 
such an assurance.
    Multiple commenters recommended changing the definition of 
Significant or Substantial Foreign Agreement by increasing the 
percentage of foreign investment that would trigger the requirement to 
submit to NOAA for its review a foreign agreement. NOAA agrees with 
this recommendation and has raised the percentage of foreign investment 
that will trigger the requirement to submit a foreign agreement from 
10% to 20% of the total value of the outstanding shares of the 
licensee. Foreign investment less than 20% of the total outstanding 
shares of the licensees assets may still require an amendment request 
if it would result in a transfer of administrative control.

License Term

    Multiple commenters expressed concern regarding NOAA's proposal to 
add language to Section 960.9 requiring licensees to show progress 
toward the development and launching of the satellite. These commenters 
thought that the new requirements were unrealistic and would have a 
substantial impact on the licensee's ability to raise capital. NOAA 
appreciates the complexity of raising the capital necessary to develop 
and launch a remote sensing satellite and will work with individual 
licensees in charting the progress of development of a licensed system. 
The proposed milestone approach is consistent with that of other 
government agencies, most notably the Federal Communications Commission 
for communications satellite systems. In addition, the requirement that 
licensees have five years to provide Preliminary and Critical Design 
Reviews is not retroactive to the date when the currently held licenses 
were issued. Instead, this five year requirement will begin on the 
effective date of the final rule.

License Conditions

    One commenter recommended that language be added setting forth the 
circumstances under which licensees may deliver imagery to non-U.S. 
Government customers without a 24 hour delay on delivery. In addition, 
this commenter recommended language be added detailing how licensees 
may pre-qualify certain allies or other non-U.S. Government customers 
to receive imagery without the 24 hour delay being applicable. 
Currently, there is a condition included in NOAA licensed systems with 
imaging capabilities better than 0.82 meter panchromatic ground sample 
distance (GSD) to withhold distribution of the imagery for 24 hours 
from the time of collection before releasing to a non-U.S. Government 
approved user. NOAA does not believe it is appropriate to place 
specific pre-qualification criteria in the regulations. This is because 
of the likelihood that the criteria will change over time. However, 
there presently is an interagency process in place for waivers of this 
license condition and NOAA has informed those licensees with this 
license condition of the process.
    Another commenter recommended that language be added setting forth 
the circumstances under which licensees may deliver panchromatic data 
at a resolution better than 0.5 meter GSD to customers other than the 
U.S. Government. NOAA does not believe it is appropriate to include 
specific criteria in the regulations because of the likelihood that the 
criteria will change over time. The U.S. Government does periodically 
review license conditions to determine if circumstances warrant 
changes. When license conditions do change, NOAA provides notice to the 
affected licensees.
    Finally, one commenter expressed concern that a 120-day approval 
period is unrealistic for license amendments and recommended it be 
reduced. Additionally, it was recommended that the 60-day advance 
notice requirement be changed so companies may enter into Significant 
or Substantial foreign agreements subject to subsequent approval by 
NOAA. NOAA does not agree with the recommended changes since these 
review periods are set by statute and cannot be altered by NOAA through 
this rule making process. NOAA and the reviewing agencies, however, 
have taken steps to decrease the amount of time it takes to review and 
issue decisions concerning the licensing matters addressed by these 
regulations. As a result of the steps taken, there has been a 
noticeable reduction in the average amount of time required to make a 
determination on a licensing action.

2. Organization

    Part 960 is organized into four (4) Subparts, discussed in greater 
detail below:
    (a) Subpart A consists of general information about the regulations 
such as the purpose, scope and definitions;
    (b) Subpart B addresses licensing procedures and conditions;
    (c) Subpart C describes the prohibitions on operating a remote 
sensing space system under these regulations; and
    (d) Subpart D sets forth the civil penalties available to the 
agency for noncompliance with these regulations and/or the terms of any 
license issued pursuant to these regulations.

3. Subpart A--General

    Section 960.1. Purpose. This section sets forth the purpose of the 
regulations regarding licensing and regulating the operation of private 
remote sensing space systems under Title II of the Act and reflects the 
President's new policy on commercial remote sensing issued on April 25, 
2003.
    Section 960.2. Scope. This section sets forth the legal parameters 
for application of the Act and these regulations. In addition, this 
Section makes the regulations applicable with respect to all existing 
and new licenses. Potential licensees may address questions regarding 
the applicability of the Act and these regulations to the Assistant 
Administrator.
    Of particular interest is the fact that the Act and these 
regulations apply to any person subject to the jurisdiction or control 
of the United States who operates or proposes to operate a private 
remote sensing space system, either directly or through an affiliate or 
subsidiary. For the purposes of these regulations, a person is:
    (1) An individual who is a United States citizen, or a foreign 
person subject to the jurisdiction and control of the United States;
    (2) A corporation, partnership, association, or other entity 
organized or existing under the laws of any state, territory, or 
possession of the United States;
    (3) A subsidiary (foreign or domestic) of a U.S. parent company;
    (4) An affiliate (foreign or domestic) of a U.S. company; or
    (5) Any other private remote sensing space system operator having 
substantial connections with the United States or deriving substantial 
benefits from the United States that support its international remote 
sensing operations sufficient to assert U.S. jurisdiction.
    Relevant connections may include: using a U.S. launch vehicle and/
or platform; operating a spacecraft command and/or data acquisition or 
ground remote station in the United States; and processing the data at 
and/or marketing it from facilities within the United States. Please 
note that these examples are merely illustrative of the

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factors that may be examined in making a jurisdictional determination 
and are not intended to be all-encompassing.
    Section 960.3. Definitions. This section defines terms used 
throughout these regulations, including the following terms:
    (1) Administrative control;
    (2) Significant and substantial foreign agreement;
    (3) Remote sensing space system and
    (4) Operational control.

4. Subpart B--Licenses

    License applicants are encouraged to contact the Assistant 
Administrator or his or her designee at the earliest possible planning 
stages. Such consultation may reveal design or data collection 
requirements that may be accommodated early, thereby avoiding changes 
to system design or data collection characteristics.
    Section 960.4. Application. This section sets forth license 
application instructions. Further information regarding the content of 
the license application has been included in Appendix 1. The agency 
record will be opened upon the filing of the license application. In 
general, a license application should contain a complete description of 
the design of the sensor package. The potential licensee should note 
that subsequent changes to the design affecting those operational 
capabilities after a license is awarded may require a license 
amendment.
    Section 960.5. Confidentiality of information. This section sets 
forth NOAA's obligation to keep confidential proprietary information 
submitted by licensees or potential licensees and imposes a requirement 
to provide a summary of such information that can be made public. The 
list of documents considered being business confidential or proprietary 
information includes foreign agreements and supporting documentation 
that are explicitly designated and marked as business confidential or 
proprietary by the submitter.
    Section 960.6. Review Procedures for license applications. This 
section describes the application review process. NOAA has made minor 
modifications to section 960.6(a) to make the wording consistent 
throughout that section and thereby improve its clarity. In addition, 
in sections 960.6(b) and (c), NOAA has increased the period of time 
reviewing agencies have to conduct completeness reviews for license 
applications from 10 working days to 30 calendar days. The option to 
extend the completeness review for an additional 10 working days has 
been eliminated. In addition, as part of the subsequent interagency 
review process, a reviewing agency will be required to notify NOAA 
before the expiration of the 30-day review period if it will be unable 
to complete its review on time. As is required by the 2000 regulations, 
an agency must also give a reason for its delay and an estimate of when 
its review will be completed. These changes reflect the experience of 
the interagency review process over the past four years. The extension 
of the initial completeness review period will allow the reviewing 
agencies additional time to more thoroughly review license applications 
and supporting documentation, which should reduce the number of follow-
up questions to the applicant. These changes, however, will not impact 
the overall 120-day statutory review period. In addition, section 
960.6(e)(2) has been modified to include the correct citation to 
section 960.6(b).
    The February 2, 2000, interagency Memorandum of Understanding 
Concerning the Licensing of Private Remote Sensing Satellite Systems 
(MOU), included as Appendix 2 of the regulations, contains timelines 
concerning completeness reviews that differ from what is proposed 
above. NOAA, in consultation with the other signatory agencies to the 
MOU, has determined not to amend the MOU at this time. In those limited 
cases where the timelines contained in the regulations and MOU differ, 
the timelines contained in the regulations will govern.
    Section 960.7. Amendments to licenses. This section enumerates some 
of the events or conditions which may trigger the requirement for a 
license amendment. An application for a license amendment must contain 
all relevant new information and must be filed with the Assistant 
Administrator. Amendment applications must be filed in accordance with 
the procedures specified in Section 960.4 and Appendix 1 for original 
license applications. In Section 960.7(a)(4), the citation to Appendix 
1 has been corrected. In addition, consistent with the changes proposed 
for review of new applications, in sections 960.7(c), (d), and (e), 
NOAA has increased the period of time reviewing agencies have to 
conduct completeness reviews on license amendment requests from 10 
working days to 30 calendar days.
    Please note that for purposes of Section 960.7, the following 
transactions do not require an amendment to a license. However, they do 
require agency notification under its monitoring and compliance 
requirements in the Annual Compliance Audit:
    (1) An acquisition of voting securities pursuant to a stock split 
or pro rata stock dividend which does not involve a change in 
administrative control;
    (2) An acquisition of convertible voting securities that does not 
involve acquisition of administrative control;
    (3) A purchase of voting securities or comparable interests in a 
licensee solely for the purpose of investment if, as a result of the 
acquisition:
    (A) When the acquisition is by a foreign person, the foreign person 
would hold ten percent or less of the outstanding voting securities of 
the licensee, regardless of the dollar value of the voting securities 
so acquired and held; or
    (B) The purchase is made directly by a bank, trust company, 
insurance company, pension fund, employee benefit plan, mutual fund, 
finance company or brokerage company in the ordinary course of business 
for its own account, provided that a significant portion of that 
business does not involve the acquisition of entities.
    (4) An acquisition of securities by a person acting as a securities 
underwriter, in the ordinary course of business, and in the process of 
underwriting;
    (5) An acquisition pursuant to a condition in a contract of 
insurance relating to fidelity, surety, or casualty obligations if the 
contract was made by an insurer in the ordinary course of business;
    (6) An acquisition of a security interest, but not control, in the 
voting securities or assets of a licensee at the time a loan or other 
financing is extended; or
    (7) An acquisition of voting securities or assets of a U.S. person 
by a foreign person upon default or other condition, involving a loan 
or other financing, provided that the loan was made by a syndicate of 
banks in a loan participation where the foreign lender(s) is/are in the 
syndicate:
    (A) Need(s) the majority consent of the U.S. participants in the 
syndicate to take action, and cannot on its own initiate any action 
vis-a-vis the debtor; or
    (B) Do/does not have the lead role in the syndicate, and are/is 
subject to a provision in the loan or financing documents limiting its 
influence, ownership or administrative control of the debtor.
    Section 960.8. Notification of Foreign Agreements. This section 
reflects the balance between promoting the commercial U.S. remote 
sensing industry and those requirements

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imposed by national security concerns, foreign policy and international 
obligations of the U.S. Government. Specifically, this section 
establishes the procedures, timelines and criteria for review and 
approval of a licensee's significant and substantial foreign 
agreements.
    Section 960.9. License Term. This section provides that the term of 
a license for operation of a remote sensing space system is the 
operational lifetime of the system as long as the system is operated in 
compliance with the terms and conditions of the license and in 
accordance with the Act and this Part. In particular, Section 201(b) of 
the Act authorizes the Secretary to grant licenses to operate a system, 
only upon a determination that the granting of such license and the 
operation of the system by the licensee would be consistent with the 
national security concerns, foreign policy and international 
obligations of the United States. The requirement set forth in Section 
201(b) is an ongoing obligation of the Secretary, and as such, the 
Secretary must regularly monitor the operation of the system and the 
activities of the licensee to assure that the national security 
concerns, foreign policy and international obligations of the U.S. are 
being protected and that the licensee is in compliance with the 
requirements of this Act, any regulations issued pursuant to the Act, 
and the terms and conditions of its license. This section also 
authorizes the Assistant Administrator to terminate a license if 
sufficient progress is not being made toward the development and launch 
of the satellite.
    Section 960.10. Hearings and Appeals. This section sets forth the 
administrative appeals mechanism with regard to licensing and 
enforcement actions.
    Section 960.11. Conditions for Operation. This section sets forth 
the conditions for operation of all systems licensed under these 
regulations and includes NOAA's requirement to protect national 
security concerns, foreign policy and international obligations of the 
United States. In furtherance of these obligations, the license 
contains rigorous conditions on the operation of a system, including 
the requirement that the licensee maintain operational control of its 
system from a U.S. territory at all times and incorporate safeguards to 
ensure the integrity of system operations. In particular, it is 
important to note that the license requirement imposed on the licensee 
that it maintain ``operational control,'' as the term is defined in 
Section 960.3, is an implementation of U.S. obligations under the 
United Nations Outer Space Treaty of 1967. That treaty provides that 
the U.S. Government, as a State party, will be held strictly liable for 
any U.S. private or governmental entity's actions in outer-space. 
Consequently, NOAA requires that licensees under this part maintain 
ultimate control of their systems, in order to minimize the risk of 
such liability and assure that the national security concerns, foreign 
policy and international obligations of the United States are 
protected.
    In determining what constitutes operational control, NOAA has moved 
away from a percentage formula of foreign ownership and has instead 
imposed a requirement that operational control of the system be based 
within the territorial jurisdiction of the United States including U.S. 
territories and protectorates. The Secretary may also examine the level 
of administrative control of a licensee exercised by foreign investors, 
including whether the respective controlling investment was a foreign 
merger, acquisition or takeover of a U.S. company that was reviewed by 
the Committee on Foreign Investment in the United States (CFIUS) under 
section 721 of the Defense Production Act.
    In addition, Section 960.11 requires the licensee to maintain and 
make available to the U.S. Government, upon request, various records of 
operations for the previous year, and allow the Secretary of Commerce 
or his or her designee to inspect such records at all reasonable times, 
as described in the license.
    As part of the reporting and recordkeeping requirements imposed by 
the license, the licensee is expected to provide various data as 
verification of compliance with the operating restrictions detailed in 
the operating license. In addition, monitoring and compliance 
requirements are imposed within the license such as quarterly 
reporting, on-site inspections and appropriate records review.
    Section 960.11(b)(13) requires licensees to submit to NOAA a Data 
Protection Plan that provides information on how the licensee will 
protect data and information from tasking to dissemination. As NOAA 
licenses more advanced systems, greater emphasis has been placed on 
protection of the data.
    The license sets forth reporting requirements for both publicly-
traded and privately-held companies. Licensees that are registered 
pursuant to the Securities Exchange Act of 1934 (Exchange Act) may 
submit copies of their Securities and Exchange Commission (SEC) forms 
10-K and 10-Q to fulfill this requirement. Licensees that are not 
registered pursuant to the Exchange Act must include, in their 
quarterly and annual reports, applicable information listed in the 
SEC's 10K and 10Q forms.
    Section 960.11(c) allows licensees to seek waivers of particular 
license conditions on a case-by-case basis, for good cause shown, and 
following consultations by NOAA with other interested agencies.

Monitoring and Compliance Program

    Consistent with the requirements outlined in Section 960.11 and 
NOAA's monitoring and compliance program under these regulations, the 
following information shall be filed by the licensee, in order to 
evaluate its compliance with the provisions of its private remote 
sensing space system license. Data provided must be in sufficient 
detail to enable the Secretary to determine whether the licensee's 
actions meet the requirements of the Act, these regulations, and the 
license. Additional information may be required.
Section I--Annual Compliance Audit
    An on-site audit shall be conducted at least annually, following 
the issuance of a license, to confirm the licensee's compliance with 
the national security, foreign policy, and international obligations of 
the United States and compliance with all other license conditions. 
This audit shall review, for example, any changes to corporate 
structure, board membership (including citizenship), ownership, and 
financial investments. The audit will also include Securities and 
Exchange Commission filings. In the event that the licensee is not a 
publicly-traded company, the licensee must provide applicable 
information required by the SEC in the 10K and 10Q forms. The Annual 
Compliance Audit will also review agreements which impact the national 
security, foreign policy and international obligations of the United 
States, and the concept of operations. Additional information may be 
required.
Section II--Twelve Months Prior to Launch
    1. Submit plan for agency approval describing how licensee will 
comply with data collection restrictions, operational limitations, or 
any data protection plans, as required.
    2. Submit operations plan for restricting collection and/or 
dissemination of imagery of Israeli territory to that which is no more 
detailed or precise than what will be available from non-U.S. 
commercial

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sources during the time of the licensee's planned operations.
Section III--No Later Than Six Months Prior To Launch
    1. Submit a data flow diagram which graphically represents the data 
flow from the sensor to the final product delivery locations.
    2. Submit satellite sub-systems drawing showing the various sub-
system locations on the satellite.
    3. Submit a final imaging system specification document for each 
sensor. This must be coordinated with the imaging system contractor.
Section IV--When the Spacecraft is Declared Operational
    Spacecraft designation number.
    Orbital altitude.
    Orbital inclination.
    Spacecraft state of health.
    Imaging system state of health.
    Spatial Resolution.
    Spectral Resolution.
    On-orbit absolute geo-positioning accuracy.
    Circular Error and Linear Error.
Section V--Quarterly Reporting
    1. Date, description, and corrective action performed for any 
anomalies or events which have caused the system to operate outside of 
license parameters and what action, if any, was performed to return the 
system to licensed baseline status.
    2. Estimated GSD of all images collected and disseminated on the 
State of Israel.
Section VI--Annual Operational Audit and Recordkeeping
    In addition to the information required for the Annual Compliance 
Audit listed in Section I, all records and data from the previous 
twelve months pertaining to the following will be maintained by the 
licensee:
    1. Spacecraft telemetry.
    2. Imaging sensor(s) tasking and associated metadata to include 
date/time of collection, image number, imager used, image corner points 
in latitude/longitude, inertial position (x,y,z), scan duration, 
azimuth. In addition, radar systems will include tasking and assorted 
meta data for phase history, grazing angle and polarization 
information.
    3. Imagery data purges and purge alerts provided to the National 
Satellite Land Remote Sensing Data Archive (NSLRSDA).

Purge Notifications to the National Satellite Land Remote Sensing Data 
Archive

    A licensee is required to notify the NSLRSDA of any data in its 
possession from its licensed remote-sensing space system that it 
intends to discard so that the NSLRSDA may acquire such data at the 
cost of reproduction and delivery.

Unenhanced Data

    When Congress removed the blanket nondiscriminatory data access 
requirement, it was careful to ensure that access to the unenhanced 
data would remain consistent with the United Nations' Principles on 
Remote Sensing, that the government of a sensed state should have 
timely access to all such data concerning its own territory. Section 
202(b)(2) of the 1992 Act requires that all licenses include the 
condition that the licensee shall make available upon request to the 
government of any country, including the United States, unenhanced data 
collected by the system concerning the territory under the jurisdiction 
of such government on reasonable commercial terms and conditions as 
soon as such data are available; consistent with the national security 
concerns, foreign policy and international obligations of the U.S. The 
regulations incorporate this requirement and consistent with this 
requirement, NOAA interprets the terms and conditions that are 
``reasonable'' in those cases where the data will not be made available 
on a nondiscriminatory basis. Making the data available to different 
classes of customers, e.g. non-commercial scientific and educational 
users, other public benefit users, commercial end users, and value-
added re-distributors, at different prices is reasonable. If a licensee 
intends to provide its unenhanced data on a restricted or exclusive 
basis, it becomes more difficult to determine what is ``reasonable'' 
vis-a-vis a sensed state. The price of these data, if measured in terms 
of their value to a particular commercial customer, may be prohibitive 
to a small government that simply wishes to monitor its own natural 
resources or to use the data, for example, for purposes of land use 
planning or to mitigate the effects of a recent natural disaster. On 
the other hand, the same price may be reasonable if the sensed state 
intends to use the data for competitive purposes. The reasonable 
commercial terms and conditions will have to be considered on a case-
by-case basis. In any event, the sensed state has the opportunity to 
demonstrate that the terms result in an undue hardship.
    NOAA fully expects that a licensee's obligation to make unenhanced 
data available to the sensed state will in almost all instances be 
satisfied as a normal commercial transaction where the government of a 
sensed state is a regular customer. In those instances where the sensed 
state has not been able to satisfy its desire to acquire unenhanced 
data directly from the licensee, the sensed state shall make a formal 
written request to the Assistant Administrator including the specific 
information (i.e., geographic location, date) on the unenhanced data it 
desires to acquire.

Licensing of New or Advanced Systems

    As a general matter, the NOAA license covers the end-to-end 
operational capability of a remote sensing space system's ability to 
quantify information that includes, but is not limited to spatial, 
spectral, temporal, coherence, and polarization properties of 
reflected, transmitted, or emitted electromagnetic radiation. In 
issuing licenses for new and advanced technologies that have not 
previously been licensed by NOAA, NOAA may apply new license conditions 
to address the unique characteristics and attributes of these systems. 
For example, NOAA may grant a ``two-tiered'' license, allowing the 
licensee to operate its system at one level, available to all users, 
while reserving the full operational capability of that system for USG 
or USG-approved customers only. In some cases, the system may have a 
USG partnership client.
    NOAA has licensed synthetic aperture radar and hyperspectral 
systems. The conditions outlined in Section 960.11 apply to all 
systems, including licensed synthetic aperture radar and hyperspectral 
systems. However, in issuing licenses for synthetic aperture radar and 
hyperspectral systems, conditions or specific limitations may be 
placed, as necessary, on operational parameters, design 
characteristics, and data throughput due to national security, foreign 
policy and international obligations. For synthetic aperture radar 
systems these include, but are not limited to:
    (1) Resolution in terms of impulse response (IPR);
    (2) Grazing angles;
    (3) Geolocational accuracy;
    (4) Multiple polarization;
    (5) System throughput (i.e., measurement of time during data 
collection, ground processing, and dissemination);
    (6) Protection of phase history data;
    (7) Location and function of non-U.S. operations centers and 
stations; and

[[Page 24479]]

    (8) Protection of all uplinks and downlinks.
    For hyperspectral systems these include, but are not limited to:
    (1) Spatial and spectral resolution;
    (2) Co-registration of hyperspectral data with data provided by 
other on-board sensors;
    (3) Operational wavelengths;
    (4) System throughput (i.e., measurement of time during data 
collection, ground processing, and dissemination);
    (5) Protection of remote sensing space system commanding, sensor 
tasking, and tasking information;
    (6) Protection of raw data;
    (7) Location and function of non-U.S. operations centers and 
stations; and
    (8) Protection of all uplinks and downlinks.

Reimbursements

    As allowed by Section 507(d) of the Act, if additional technical 
modifications are imposed on a system operated under a previously 
granted license, on the basis of national security, the licensee may be 
reimbursed for those technical modifications. Generally, conditions in 
original licenses, previously-granted licenses or amendments that are 
the result of licensee initiated activities will not be considered for 
reimbursement. The Assistant Administrator, in consultation with the 
Secretary of Defense or other appropriate Federal agencies, will 
determine whether actual modification costs or past development costs 
(including the cost of capital) incurred by the licensee shall be 
reimbursed by the government agency or agencies which requested such 
technical modifications. The costs and terms associated with meeting 
this condition will be negotiated directly between the licensee and the 
agency or agencies requesting the technical modifications. The loss of 
anticipated profits and the cost of security measures imposed on all 
licensees are not reimbursable.

Kyl-Bingaman Amendment

    Consistent with the requirement that licensees operate their 
systems in a manner that protects national security concerns, foreign 
policy and international obligations, Section 1064, Public Law No. 104-
201, (the 1997 Defense Authorization Act), referred to as the Kyl-
Bingaman Amendment, requires that ``[a] department or agency of the 
United States may issue a license for the collection or dissemination 
by a non-Federal entity of satellite imagery with respect to Israel 
only if such imagery is no more detailed or precise than satellite 
imagery of Israel that is available from commercial sources.'' Pursuant 
to that law, the Department of Commerce will make a finding as to the 
level of detail or precision of satellite imagery of Israel available 
from commercial sources. Moreover, as the statutory limitation applies 
to U.S. licensees, the term ``commercial sources'' is interpreted for 
purposes of these regulations as referring to satellite imagery so 
readily and consistently available from non-U.S. commercial entities 
that the availability of additional imagery from U.S. commercial 
sources may be permitted.
    To interpret the term ``commercial availability'' of imagery of 
Israel from non-U.S. sources, NOAA looks to regulations of the Commerce 
Department's Bureau of Industry and Security, concerning findings on 
foreign availability for export control purposes, as a model (See 15 
CFR 768). These regulations state that ``foreign availability exists 
when the Secretary [of Commerce] determines that an item is comparable 
in quality to an item subject to U.S. national security export 
controls, and is available-in-fact to a country, from a non-U.S. 
source, in sufficient quantities to render the U.S. export control of 
that item or the denial of a license ineffective.'' (See 15 CFR 
768.2(a)).
    Applying the above approach to implement the Kyl-Bingaman 
Amendment, the Department of Commerce will monitor the level of imagery 
resolution readily and consistently available in sufficient quantities 
from non-U.S. sources, to determine what imaging or data dissemination 
restrictions, if any, shall apply to licensees. A review of non-U.S. 
commercial availability will be conducted on an annual basis or more 
frequently if warranted. Input from licensees or from the general 
public is welcome to assist in this determination. Findings of this 
review will be published in the Federal Register and will constitute 
the data collection and/or dissemination restrictions with respect to 
imagery of Israel.
    As part of its licensing process, NOAA will require an applicant to 
submit a plan explaining how its proposed system will be able to 
restrict the collection and/or dissemination of imagery of Israeli 
territory at a level of resolution determined by the Commerce 
Department. NOAA will review this plan to ensure compliance.

Spacecraft Disposal and Orbital Debris Mitigation Plan

    As an additional licensing requirement, licensees shall, ``upon 
termination of operations under the license, make disposition of any 
satellites in space in a manner satisfactory to the President,'' in 
accordance with Section 202(b)(4) of the Act. Under Section 960.11 and 
the terms and conditions of the license, NOAA has interpreted this 
requirement to mean that a licensee shall assess and minimize the 
amount of orbital debris released during the post-mission disposal of 
its satellite. Applicants are required to provide at the time of 
application a plan for post-mission disposition of remote sensing 
satellites.
    The U.S. Government has developed orbital debris mitigation 
practices for use in government missions. These practices include 
control of orbital debris released during normal operations, 
minimization of debris generated by accidental explosions, selection of 
a safe flight profile and operational configuration, and post-mission 
disposal of space structures. NOAA will make available to applicants 
background information on three possible methods for post-mission 
disposal which are consistent with these practices: atmospheric re-
entry, maneuvering to a storage orbit, or direct retrieval. NOAA will 
review an applicant's plan for post-mission disposal on a case-by-case 
basis. NOAA will assess whether the plan, including satellite design 
and components, provide an acceptable post-mission disposal method to 
mitigate orbital debris and minimize any potential adverse effects. 
Applicants are specifically required to submit a casualty risk 
assessment if planned post-mission disposal involves atmospheric re-
entry of the spacecraft.
    Section 960.12 Data Policy for Remote Sensing Space Systems. This 
section describes various circumstances under which the licensee may be 
required, consistent with the terms of its license, to make available 
some or all of the unenhanced data from the system on a 
nondiscriminatory basis in accordance with Section 501 of the Act. For 
example, if the U.S. Government has (either directly or indirectly) 
funded some of the development, fabrication, launch, or operations 
costs of a licensed system, the Secretary of Commerce or his or her 
designee, in consultation with other appropriate U.S. agencies, must 
determine whether the interest of the United States, in promoting 
widespread availability of remote sensing data, requires that some or 
all of the unenhanced data from the system be made available on a 
nondiscriminatory basis in accordance with Section 501 of the Act. In 
addition, the license must specify any data subject to this 
requirement.

[[Page 24480]]

    The Act requires that an operator of a system that can be 
characterized as essentially a Governmental system, such as the Landsat 
system and those systems that are substantially funded by the U.S. 
Government, make its unenhanced data available on a nondiscriminatory 
basis, but allows the operator of a non-governmental system to follow 
normal commercial practices unless U.S. interests dictate otherwise. 
(See Sections 201(e), 202(b)(3), and 501).
    Section 960.12 of the regulations implements this provision 
consistent with the Act's overall objective of making data available to 
the widest possible spectrum of users, particularly for scientific 
purposes in support of the public benefit upon reasonable terms and 
conditions. This section addresses three categories of licensees. The 
first are those whose development, fabrication, launch, or operations 
costs have been funded, entirely or in substantial part, directly by 
the Government. As dictated by the Act, these operators must make their 
unenhanced data available on a nondiscriminatory basis. This 
requirement ensures that the data are broadly accessible and is 
consistent with the basic policy, codified in the Paperwork Reduction 
Act, 44 U.S.C. 3506 et seq. and included in Office of Management and 
Budget Circular A-130, that data paid for by the taxpayer is a public 
benefit to be made equally available to all members of the public. The 
second category of licensees are those that are fully commercial, i.e., 
not funded by the Government in whole or in part. These operators will 
be allowed to follow their preferred commercial data practices, subject 
to providing the unenhanced data to the governments of those states 
sensed and consistent with concerns regarding U.S. national security, 
foreign policy, and international obligations, as discussed below. 
These licensees will be encouraged to promote access to their data on 
as widespread a basis as possible and it is anticipated that, in most 
cases, there will be a commercial incentive to reach a broad customer 
base. It is recognized that in some cases, some of the data collected 
by such systems may not become generally accessible. However, NOAA 
believes that this loss will be outweighed by the substantially greater 
volume of data that will be collected by a vigorous commercial 
industry. It should be noted that limited purchases by the U.S. 
Government, as a normal customer of the licensee, would not constitute 
funding or support for purposes of this section.
    The third category of licensees consists of those systems in which 
the U.S. Government provides some support. Here, the Government's 
interest is more significant, because of taxpayer investment and the 
possible precedential effect of permitting restricted access to the 
data through international data exchange involving government 
subsidized public-private ventures. The data policy applicable to these 
licensees will be determined on a case-by-case basis, balancing the 
effect on the licensee of limiting its commercial options against the 
potential benefits of providing widespread access of the data for non-
commercial scientific, educational and other public benefit purposes. 
In evaluating the potential for data loss, NOAA will consider both the 
data to be gathered by the particular licensee as well as the possible 
implications for future intergovernmental data exchanges.
    It is anticipated that the U.S. Government interest in making the 
data available can usually be addressed through terms and conditions in 
the license that do not require a full nondiscriminatory data access 
policy. For example, it may be possible to accommodate such interests 
by ensuring access for non-commercial scientific, educational, and 
other public good purposes, while protecting a licensee's commercial 
options.

5. Subpart C--Prohibitions

    Section 960.13 Prohibitions. This section sets forth the 
prohibitions under these regulations. Under this section, it is 
unlawful for any person who is subject to the jurisdiction or control 
of the United States, directly or through any subsidiary or affiliate 
to, among other things: (a) Operate a system without possession of a 
valid license issued under the Act and these regulations; (b) violate 
any provision of the Act, these regulations or any term, condition, or 
restriction of the license; (c) violate any order, directive, or other 
notice issued by the Secretary; and/or (d) interfere with the 
enforcement of this Part. It also requires licensees to update data 
provided to the Secretary in a timely manner.

6. Subpart D--Enforcement Procedures

    Section 960.14 states that any person found to be in violation of 
the Act, this part, or any license issued under this part, will be 
subject to the civil penalty provisions prescribed in the Act, these 
regulations and other applicable laws.
    Section 960.15 sets forth detailed procedures to be followed by 
NOAA when assessing civil penalties under the Act.

7. Appendices

    Appendix 1--Application Information. This Appendix contains the 
information requirements of the license application as discussed in 
Section 960.4. Appendix 2--Fact Sheet Regarding the Memorandum of 
Understanding Concerning the Licensing of Private Remote Sensing 
Satellite Systems. The Departments of State, Defense, Interior, and 
Commerce, and the Intelligence Community, with the participation of 
OSTP and the NSC, concluded an interagency MOU concerning the Licensing 
of Private Remote Sensing Space Systems. On February 2, 2000, a Fact 
Sheet on the Interagency MOU was released. This Fact Sheet is included 
as Appendix 2.

Classification

A. Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
    These regulations establish a process intended to promote the 
development of the remote sensing industry and to minimize any adverse 
impact on any entity, large or small, that may seek a license to 
operate a private remote sensing space system.
    Accordingly, the Chief Counsel for Legislation and Regulation of 
the Department of Commerce certified to the Chief Counsel for Advocacy 
of the Small Business Administration that this rule will not have a 
significant economic impact on a substantial number of small entities. 
The basis for this certification was the fact that, given the 
extraordinary capitalization required to operate a commercial remote 
sensing space system, costs of development and launch still remain 
high. As such, small entities have yet to enter this field and appear 
highly unlikely to do so. No comments were received regarding this 
certification. As a result, no final regulatory flexibility analysis 
was prepared.
B. Paperwork Reduction Act of 1995 (35 U.S.C. 3500 et seq.)
    This final rule contains a new collection-of-information 
requirement subject to the Paperwork Reduction Act (PRA) that will 
modify the existing collection-of-information requirement that was 
approved by OMB under control number 0648-0174. This new requirement 
has been submitted to OMB for approval. Public reporting burden for 
these requirements are estimated to average: 40 hours for the 
submission of a license application; 10 hours for the submission of a 
data protection plan; 5

[[Page 24481]]

hours for the submission of a plan describing how the licensee will 
comply with data collection restrictions; 3 hours for the submission of 
an operations plan for restricting collection or dissemination of 
imagery of Israeli territory; 3 hours for submission of a data flow 
diagram; 2 hours for the submission of satellite sub-systems drawings; 
3 hours for the submission of a final imaging system specifications 
document; 2 hours for the submission of a public summary for a licensed 
system; 2 hours for the submission of a preliminary design review; 2 
hours for the submission of a critical design review; 1 hour for 
notification of a binding launch services contract; 1 hour for 
notification of completion of pre-ship review; 10 hours for the 
submission of a license amendment; 2 hours for the submission of a 
foreign agreement notification; 2 hours for the submission of 
spacecraft operational information submitted when a spacecraft becomes 
operational; 2 hours for notification of deviation in orbit or 
spacecraft disposition; 2 hours for notification of any operational 
deviation; 2 hours for notification of planned purges of information to 
the National Satellite Land Remote Sensing Data Archive; 3 hours for 
the submission of an operational quarterly report; 8 hours for an 
annual compliance audit; 10 hours for an annual operational audit; and 
2 hours for notification of the demise of a system or a decision to 
discontinue system operations. No estimate is being given to provide 
imagery data to the National Satellite Land Remote Sensing Data 
Archive. An estimate will be developed at a later date.
    The public burden for this collection of information includes the 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information. Public comment is sought regarding:
    Whether this collection of information is necessary for the proper 
performance of the functions of the agency, including whether the 
information shall have practical utility; the accuracy of the burden 
estimate; ways to enhance the quality, utility, and clarity of the 
information to be collected; and ways to minimize the burden of the 
collection of information, including through the use of automated 
collection techniques or other forms of information technology. Send 
comments on these or any other aspect of the collection of information 
to Mr. Douglas Brauer, NOAA/NESDIS International and Interagency 
Affairs Office, at the address noted above and by e-mail to David--
Rostker@omb.eop.gov, or fax to (202) 395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB Control Number.
C. National Environmental Policy Act (42 U.S.C. 4321 et seq.)
    Publication of these regulations does not constitute a major 
Federal action significantly affecting the quality of the human 
environment. Therefore, an environmental impact statement is not 
required.
D. Executive Order 12866, Regulatory Planning and Review
    This rule has been determined to be significant for purposes of 
Executive Order 12866.

List of Subjects in 15 CFR Part 960

    Administrative practice and procedure, confidential business 
information, Penalties, Reporting and record keeping requirements, 
Satellites, Scientific equipment, Space transportation and exploration.

    Dated: April 18, 2006.
Gregory W. Withee,
Assistant Administrator for Satellite and Information Services.

0
Accordingly, for the reasons set forth above, part 960 of title 15 of 
the Code of Federal Regulations is revised to read as follows:

PART 960--LICENSING OF PRIVATE REMOTE SENSING SYSTEMS

Subpart A--General
Sec.
960.1 Purpose.
960.2 Scope.
960.3 Definitions.
Subpart B--Licenses
960.4 Application.
960.5 Confidentiality of information.
960.6 Review procedures for license applications.
960.7 Amendments to licenses.
960.8 Notification of foreign agreements.
960.9 License term.
960.10 Appeals/hearings.
960.11 Conditions for operation.
960.12 Data policy for remote sensing space systems.
Subpart C--Prohibitions
960.13 Prohibitions.
Subpart D--Enforcement Procedures
960.14 In general.
960.15 Penalties and sanctions.

Appendix 1 to Part 960--Filing Instructions and Information To Be 
Included in the Licensing Application

Appendix 2 to Part 960--Fact Sheet Regarding the Memorandum of 
Understanding Concerning the Licensing of Private Remote Sensing 
Satellite Systems Dated February 2, 2000

    Authority: 15 U.S.C. 5624.

Subpart A--General


Sec.  960.1  Purpose.

    (a) The regulations in this part set forth the procedural and 
informational requirements for obtaining a license to operate a private 
remote sensing space system under Title II of the Land Remote Sensing 
Policy Act of 1992 (15 U.S.C. 5601 et seq.) (Public Law 102-555, 106 
Stat. 4163) and applicable U.S. Policy, which addresses the U.S. 
commercial remote sensing satellite industry. (Available from NOAA, 
National Environmental Satellite Data and Information Service, 1335 
East-West Highway, Room 7311, Silver Spring, MD 20910). In addition, 
this part describes NOAA's regulation of such systems, pursuant to the 
Act and applicable U.S. Policy. The regulations in this part are 
intended to:
    (1) Preserve the national security of the United States;
    (2) Observe the foreign policies and international obligations of 
the United States;
    (3) Advance and protect U.S. national security and foreign policy 
interests by maintaining U.S. leadership in remote sensing space 
activities, and by sustaining and enhancing the U.S. remote sensing 
industry;
    (4) Promote the broad use of remote sensing data, their information 
products and applications;
    (5) Ensure that unenhanced data collected by licensed private 
remote sensing space systems concerning the territory of any country 
are made available to the government of that country upon its request, 
as soon as such data are available and on reasonable commercial terms 
and conditions as appropriate;
    (6) Ensure that remotely sensed data are widely available for civil 
and scientific research, particularly environmental and global change 
research; and
    (7) Maintain a permanent comprehensive U.S. government archive of 
global land remote sensing data for long-term monitoring and study of 
the changing global environment.
    (b) In accordance with the Act and applicable U.S. Policy, 
decisions regarding the issuance of licenses and operational conditions 
(See Subpart B of

[[Page 24482]]

this part) will be made by the Secretary of Commerce or his/her 
designee. Determinations of conditions necessary to meet national 
security, foreign policy and international obligations are made by the 
Secretaries of Defense and State, respectively.
    (c) In accordance with U.S. Policy, NOAA encourages U.S. companies 
to build and operate commercial remote sensing space systems whose 
operational capabilities, products, and services are superior to any 
current or planned foreign commercial systems. However, because of the 
potential value of its products to an adversary, the U.S. Government 
may restrict operations of the commercial systems in order to limit 
collection and/or dissemination of certain data and products to the 
U.S. Government or to U.S. Government-approved recipients.


Sec.  960.2  Scope.

    (a) The Act and the regulations in this part apply to any person 
subject to the jurisdiction or control of the United States who 
operates or proposes to operate a private remote sensing space system, 
either directly or through an affiliate or subsidiary, and/or 
establishes substantial connections with the United States regarding 
the operation of a private remote sensing system.
    (b) In determining whether substantial connections exist with 
regard to a specific system, the factors NOAA may consider include, but 
are not limited to: the location of a system control center or 
operations centers and stations; the administrative control of the 
system; use of a U.S. launch vehicle; location or administrative 
control of ground receiving stations; the investment, ownership, or 
technology included in the system.
    (c) The regulations in this part apply to any action taken on or 
after May 25, 2006 with respect to any license, and to pre-existing 
licenses.
    (d) If any provision of the regulations in this part or the 
application thereof to any person or circumstance is held invalid, the 
validity of the remainder of the regulations in this part or the 
application of such provision to other persons and circumstances shall 
not be affected.
    (e) Issuance of a license under the regulations in this part does 
not affect the authority of any Department or Agency of the U.S. 
Government including, but not limited to, the Federal Communications 
Commission under the Communications Act of 1934 (47 U.S.C. 151 et 
seq.), the Department of Transportation under the Commercial Space 
Launch Act of 1984 (49 U.S.C. app. 2601 et seq.), the Department of 
Commerce under the Export Administration Regulations (15 CFR parts 730-
774), or the Department of State under the Arms Export Control Act (22 
U.S.C. 2778) and the International Traffic in Arms Regulations (22 CFR 
parts 120-130).


Sec.  960.3  Definitions.

    For purposes of the regulations in this part, the following terms 
have the following meanings:
    Act means the Land Remote Sensing Policy Act of 1992 (Pub. L. 102-
555, 106 Stat. 4163) as amended by the 1998 Commercial Space Act (Pub. 
L. 105-303, 112 Stat. 2846), 15 U.S.C. 5601 et seq.
    Administrative control means the power or authority, direct or 
indirect, whether or not exercised through the legal or defacto 
ownership or possession thereof, ownership of voting securities of a 
licensee, or by proxy voting, contractual arrangements or other means, 
to determine, direct or decide matters affecting the operations of the 
system; specifically, to determine, direct, take, manage, administer, 
influence, reach, or cause decisions regarding the:
    (1) Sale, lease, mortgage pledge, or other transfer of any or all 
of the system or system control assets of the licensee, whether in the 
ordinary course of business or not;
    (2) Operation of the system(s), including but not limited to orbit 
maintenance and other housekeeping functions, tasking and tasking 
prioritization, data acquisition, data storage, data transmission, 
processing and dissemination;
    (3) Dissolution of the licensee;
    (4) Closing and/or relocation of the command and control center of 
the system;
    (5) Execution, substantive modification and/or termination or non-
fulfillment of any significant or substantial foreign agreement of the 
licensee regarding direct readout or tasking obligations; or
    (6) Amendment of the Articles of Incorporation or constituent 
agreement of the licensee with respect to the matters described in 
paragraphs (1) through (4) of this definition.
    Administrator means the Administrator of NOAA and Under Secretary 
of Commerce for Oceans and Atmosphere or his/her designee.
    Affiliate means any person:
    (1) Which owns or controls more than a 5% interest in the applicant 
or licensee; or
    (2) Which is under common ownership or control with the applicant 
or licensee.
    Applicant means a person who has submitted an application for a 
NOAA license to operate a remote sensing space system.
    Assistant Administrator means the Assistant Administrator of NOAA 
for Satellite and Information Services or his/her designee.
    Authorized Officer means an individual designated by the Secretary 
of Commerce or his/her designee to enforce the regulations in this 
part.
    Basic data set means those unenhanced data generated by the Landsat 
system or by any remote sensing space system licensed under the Act 
that have been selected by the Secretary of the Interior to be 
maintained in the National Satellite Land Remote Sensing Data Archive, 
as described in Section 502(c) of the Act.
    Beneficial owner means any person who, directly or indirectly, 
through any contract, arrangement, understanding, relationship, or 
otherwise, has or shares: The right to exercise administrative control 
over a licensee; and the power to dispose of or to direct the 
disposition of, any security interest in a license. All securities of 
the same class beneficially owned by a person, regardless of the form 
which such beneficial ownership takes, shall be aggregated in 
calculating the number of shares beneficially owned by such person. A 
person shall be deemed to be the beneficial owner of a security 
interest if that person has the right to acquire beneficial ownership, 
as defined in this definition, within sixty (60) days from acquiring 
that interest, including, but not limited to, any right to acquire 
beneficial ownership through: The exercise of any option, warrant or 
right; the conversion of a security; the power to revoke a trust, 
discretionary account, or similar arrangement; or the automatic 
termination of a trust, discretionary account or similar arrangement.
    Data Protection Plan refers to the licensee's plan to protect data 
and information through the entire cycle of tasking, operations, 
processing, archiving and dissemination. At a minimum, this includes 
appropriate protection of communications links and/or delivery methods 
for tasking of the satellite, downlinking of data to a ground station 
(includi