On 29 September 2012, a new proposal was submitted by the Turkish Cypriot side, but was again rejected by the Greek Cypriot side. The proposal included a bi-communal technical committee on natural resources and related agreements and revenues, with a president appointed by the UN Secretary-General and an oil pipeline transporting hydrocarbons through Turkey.  Cyprus and Egypt were the first to conclude in 2003 a delimitation agreement on the delimitation of the Exclusive Economic Zone (EEZ) (here). The agreement is based on “a middle line whose position is equal to the next point on the baseline of both parties” (Article 1). Cyprus then concluded two other agreements on the basis of median/equidistances: with Lebanon in 2007 (here not yet in force) and with Israel in 2010 (here). These three agreements are concise and each contain five articles: Article 1 defines the exact position of the middle line; Article 2 deals with the resources of the cross-border seabed; Article 3 governs the process of future delimitation with third countries; Section 4 deals with dispute resolution; and Article 5 examines the ratification and entry into force of the agreement. A final point concerns the stability and viability of The Cyprus Boundaries Agreements with Egypt and Lebanon for a new future “situation” on the island. There is no doubt that both agreements were concluded under international law; they become binding on the parties by completing the ratification process. Delimitation agreements must not infringe on the rights and competences of third countries, including Turkey.
Another question is whether a definitive solution to the Cyprus problem could call into question these agreements. “American policy has not changed. Any dispute is between the Republic of Cyprus, the countries that have signed agreements with Cyprus, and Turkey. The United States is not involved in these agreements. The U.S. State Department has no recommendations on whether U.S. companies should participate in the tendering process. Controversy underscores, however, that all parties must focus on refounding the mission of good United Nations offices in the context of disputes in order to develop a comprehensive settlement on Cyprus that would bring the island together into a bicommunal bizonal federation. The next step should be the implementation of the agreement negotiated by Deputy Secretary-General Gambari on 8 July 2006.
A final settlement will allow all Cypriots to benefit from the island`s resources. On 17 February 2003, Cyprus and Egypt signed the Agreement on the Delimitation of the Exclusive Economic Zone (EEZ). In accordance with Article 1, paragraph 1, “the delimitation of the EEZ between the two contracting parties will be carried out by the middle line, the distance between the point closest to the baseline of the two contracting parties.” This method of delimitation is consistent with international jurisprudence, customary law and the United Nations Convention on the Law of the Sea. A similar agreement between Cyprus and Lebanon was signed on 17 January 2007. In 2004, Cyprus passed legislation for the proclamation of the EEZ that did not extend more than 200 miles from the baselines from which the width of the coastal sea is measured and adjacent areas, whose external border was not to exceed 24 nautical miles of the same baselines. On 15 February 2007, Cyprus opened a tender procedure for the authorisation of offshore oil and gas exploration. It is worth mentioning the delimitation agreements and oil exploration fields to the south, southeast and southwest of the island. Turkey strongly protested against the Cyprus approach, with Greece and the United States taking a stand on the ongoing dispute.
The Republic of Cyprus passed the Territorial Lake Act in 1964. The law set 12 nautical miles (22 km; 14 miles) of the coastal sea. The coordinates of the coastal sea were submitted to the United Nations in 1993 and their validity was confirmed in 1996.  The Cyprus Continental Shelf is defined by the Continental Ash Act passed in 1974.