Compensation for Submerged Lands License Agreements

In exchange for those rights granted under the Submerged Land License Agreement for up to six

(6)cables, Licensee shall pay CLTC landing fees and annual license fees according to the following schedule:

(a)For the first cable system: A landing fee of One Hundred Thousand Dollars ($100,000) shall be paid within thirty

(30)days of approval of the Bureau of Statistics and Plans Guam Coastal Management Program when the construction, installation, or repair/upgrade of conduit infrastructure or cables is required. In additional, an initial annual license payment in accordance with § 75A204(h) shall be paid within thirty

(30)days of the System Operational Date (as defined in § 75A204(g) of this Article) of the first cable system (First System Operational Date); and thereafter, an annual license payment adjusted in accordance with § 75A204(i) shall be paid beginning on the first anniversary of the First System Operational Date and continuing annually for the term of the License Agreement. If no construction, installation, or repair/upgrade of conduit infrastructure or cables is required, only license payments in accordance with § 75A204(h), (i), and § 75A208 shall apply.

(b)For the second cable system: A landing fee of One Hundred Thousand Dollars ($100,000) shall be paid within thirty

(30)days of approval of the Bureau of Statistics and Plans Guam Coastal Management Program when the construction, installation, or repair/upgrade of conduit infrastructure or cables is required. In addition, an initial annual license payment in accordance with § 75A204(h) shall be paid within thirty

(30)days of the System Operational Date (as defined in § 75A204(g) of this Article) of the second cable system (Second System Operational Date); and thereafter, an annual license payment adjusted in accordance with § 75A204(i) shall be paid beginning on the first anniversary of the Second System Operational Date and continuing annually for the term of the License Agreement. If no construction, installation, or repair/upgrade of conduit infrastructure or cables is required, only license payments in accordance with § 75A204(h), (i), and § 75A208 shall apply.

(c)For the third cable system: A landing fee of One Hundred Thousand Dollars ($100,000) shall be paid within thirty

(30)days of approval of the Bureau of Statistics and Plans Guam Coastal Management Program when the construction, installation, or repaid/upgrade of conduit infrastructure or cables is required. In addition, an initial annual license payment in accordance with § 75A204(h) shall be paid within thirty

(30)days of the System Operational Date (as defined in § 75204(g) of this Article) of the third cable system (Third System Operational Date); and thereafter, an annual license payment adjusted in accordance with § 75204(i) shall be paid beginning on the first anniversary of the Third System Operational Date and continuing annually for the term of the License Agreement. If no construction, installation, or repaid/upgrade of conduit infrastructure or cables is required, only license payments in accordance with section § 75A204(h), (i), and § 75A208 shall apply.

(d)For the fourth cable system: A landing fee of One Hundred Thousand Dollars ($100,000) shall be paid within thirty

(30)days of approval of the Bureau of Statistics and Plans Guam Coastal CH. 75A CHAMORRO LAND TRUST COMMISSION EFFECTIVE JANUARY 1, 2021 Management Program when the construction, installation, or repair/upgrade of conduit infrastructure or cables is required. In addition, an initial annual license payment in accordance with § 75A204(h) shall be paid within thirty

(30)days of the System Operational Date (as defined in § 75A204(g) of this Article) of the fourth cable system (Fourth System Operational Date); and thereafter, an annual license payment adjusted in accordance with § 75A204(i) shall be paid beginning on the first anniversary of the Fourth System Operational Date and continuing annually for the term of the License Agreement. If no construction, installation, or repair/upgrade of conduit infrastructure or cables if required, only license payments in accordance with§ 75A204(h), (i), and § 75A208 shall apply.

(e)For the fifth cable system: A landing fee of One Hundred Thousand Dollars ($100,000) shall be paid within thirty

(30)days of approval of the Bureau of Statistics and Plans Guam Coastal Management Program when the construction, installation, or repair/upgrade of conduit infrastructure or cables is required. In addition, an initial annual license payment in accordance with § 75A204(h) shall be paid within thirty

(30)days of the System Operational Date (as defined in § 75A204(g) of this Article) of the fifth cable system (Fifth System Operational Date); and thereafter, an annual license payment adjusted in accordance with § 75A204(i) shall be paid beginning on the first anniversary of the Fifth System Operational Date and continuing annually for the term of the License Agreement. If no construction, installation, or repair/upgrade of conduit infrastructure or cables if required, only license payments in accordance with§ 75A204(h), (i), and § 75A208 shall apply.

(f)For the sixth cable system: A landing fee of One Hundred Thousand Dollars ($100,000) shall be paid within thirty

(30)days of approval of the Bureau of Statistics and Plans Guam Coastal Management Program when the construction, installation, or repair/upgrade of conduit infrastructure or cables is required. In addition, an initial annual license payment in accordance with § 75A204(h) shall be paid within thirty

(30)days of the System Operational Date (as defined in § 75A204(g) of this Article) of the sixth cable system (Sixth System Operational Date); and thereafter, an annual license payment adjusted in accordance with § 75A204(i) shall be paid beginning on the first anniversary of the Sixth System Operational Date and continuing annually for the term of the License Agreement. If no construction, installation, or repair/upgrade of conduit infrastructure or cables if required, only license payments in accordance with§ 75A204(h), (i), and § 75A208 shall apply.

(g)The “System Operational Date” of each cable system shall be that date at which the cable system is fully installed, the associated system-wide testing is completed, and the cable system is approved to carry commercial traffic. Licensee shall notify CLTC within thirty

(30)days after the establishment of the System Operational Date of each cable installed and operational cable systems, the “system operational date” shall mean the start of the term of the new License Agreement.

(h)Annual license fees for cable systems that have a System Operational Date, from the enactment of this Article through December 31, 2031, shall be applied as follows:

(1)Enactment - December 31, 2022 $100,000

(2)January 1 - December 31, 2023 $102,000

(3)January 1 - December 31, 2024 $104,040

(4)January 1 - December 31, 2025 $106,121

(5)January 1 - December 31, 2026 $108,243

(6)January 1 - December 31, 2027 $110,408

(7)January 1 - December 31, 2028 $112,616

(8)January 1 - December 31, 2029 $114,868 CH. 75A CHAMORRO LAND TRUST COMMISSION EFFECTIVE JANUARY 1, 2021

(9)January 1 - December 31, 2030 $117,165

(10)January 1 - December 31, 2031 $119,509

(i)The annual fees for each cable system set forth in this Section shall be adjusted annually on the anniversary of the System Operational Date of each cable system, and on the anniversary of the System Operational Date of each cable system, and for the remainder of the term. All recurring fees shall be adjusted and increased annually for inflation at a fixed rate of two percent (2%) per annum.

(j)The annual fees for each cable system set forth in this section shall be applicable exclusively to License Agreements granted after the enactment of this Article. All unexpired existing License Agreements signed before enactment of this Article will be honored within the limits already set forth in their respective agreement.

(k)The Chamorro Land Trust Commission and staff shall also utilize this section for operators with existing cable system agreement s which may be expired or expiring who are seeking to renegotiate new Submerged Lands License Agreements.

(l)A cable system is defined as a single ento-to-end undersea communications cable and associated facilities owned by a set of joint partners which lands in Guam, recognizing that a cable system may either

(1)terminate in Guam via a single cable end, or

(2)transit in and out of Guam via two

(2)cable ends interconnected at a local cable landing station. A single landing fee and annual license would be applied to each cable system as articulated in Subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), of this section or as provided for in other sections of law.

(1)“Undersea Cable” or “Submarine Cable” includes a cable used to conduct electricity or light that is placed on the submerged or submersible lands within the territorial sea of Guam.

(2)In either case, a single landing fee and annual license would be applied to each cable system as articulated in Subsections (a), (b), (c), (d), (e), (f), (g), (h), (i), of this Section or as provided for in other sections of law.

(3)CLTC reserves the right to modify the Guam Open Access Link

(GOAL)from time-totime as appropriate. CLTC’s decision will be in line with standard industry practices while final decisions are at CLTC’s sole and absolute discretion subject to legislative approval.

(m)Existing Agreements set to expire within the six

(6)month period after the effective date of this Article may be extended for one

(1)additional six

(6)month period upon written notification by Licensee to the CLTC unless Licensee provides written notification to the CLTC denouncing such extension within thirty

(30)days of the effective date of this Article. The terms of the Existing Agreement shall govern the terms of the six

(6)month extension period, except that for cables installed by Licensee prior to the effective date of this Article, if they associated system-wide testing has not been completed and cable system has not been approved to carry commercial traffic prior to such date, it shall be governed by the provisions of this Article.

(n)For the purposes of Subsection (a)-(f) of this § 75A204, a landing fee is required for cables that have been installed by Licensee prior to the effective date of this Article if the associated systemwide testing has not been completed and the cable system has not been approved to carry commercial traffic prior to such date.