Seppard was a star system located between the Leonhardt Empire and the Tekea Federation — an undeveloped zone that wasn't considered a territory.

It might be hard to understand from an Earthling's point of view that the entire star system was barren, but in fact, most galaxies and star systems in the universe were often like this. Or rather, intelligent beings had claimed less than one percent of the entire universe's star systems as territory.

The universe was very wide. It was to the point that scholars concluded that the era of the Great Universe could not have started without the Star Gate created by transcendent-grade wizards or the Astral Drive of Kendler Saints who had attained peak of Stage IV Civilization.

There were hundreds of billions of galaxies in this vast universe, and even if one flew at light speed, it would take at least 100,000 years, at worst millions of years to traverse it, so how could one dominate and manage the entire universe? Therefore, most stars and galaxies in the universe had no civilization or intelligent beings.

Union Act was a status quo that came to light because of planets or stars that couldn't continuously maintain a certain number of residents for a certain period of time (10 to 10,000 years depending on size). Hence, they weren't recognized as a territory...