LAW OF THE KYRGYZ REPUBLIC

of May 19, 2018 No. 49

About subsoil

Accepted by Jogorku Kenesh of the Kyrgyz Republic on April 12, 2018

Chapter 1. General provisions

Article 1. Scope of this Law

1. This Law governs the relations arising when using natural resources at the state with physical persons and legal entities.

2. The legislation of the Kyrgyz Republic in the field of use of natural resources is based on provisions of the Constitution of the Kyrgyz Republic and consists of this Law and regulatory legal acts of the Kyrgyz Republic adopted according to it.

3. This Law determines procedure for the state legal regulation, competence of public authorities, bodies of local public administrations and local self-government, the right and obligation of physical persons and legal entities, and also responsibility for violation of the legislation of the Kyrgyz Republic in the field of subsurface use.

Article 2. Application of other laws and regulatory legal acts when using natural resources

1. The relations connected with use and protection of lands, water objects, plant and animal life, atmospheric air, arising when using natural resources and not settled by this Law are regulated by the relevant legislation of the Kyrgyz Republic.

2. The state performs the policy in the field of subsurface use on the basis of following provisions:

1) subsoil is the exclusive property of the state which is under its special protection;

2) discrimination of citizens and legal entities respectively on the basis of nationality or country of incorporation is not allowed;

3) aspiration to creation of conditions for safe for people and the environment of conducting works;

4) development and management of mineral resources of the Kyrgyz Republic;

5) protection and rational use of subsoil of the Kyrgyz Republic;

6) regulation of the relations connected with subsurface use on the basis of mutually beneficial cooperation;

7) transparency, openness of procedures of licensing;

8) non-admission of restriction of the competition and monopolization in case of subsurface use.

3. Features of the relations of subsurface use on the terms of production sharing agreements and concession treaties are established by the relevant laws of the Kyrgyz Republic.

Article 3. Subsurface mineral right

Subsoil is exclusive property of the Kyrgyz Republic, is used as basis of life and activities of the people of Kyrgyzstan and is under special protection of the state.

Article 4. The terms used in this Law

In this Law the following terms are used:

1) the beneficiary - physical person, the state which is the final owner of the subsoil user and/or the applicant on receipt of mineral right in the way:

a) immediate and/or indirect possession in 10 and more percent of shares or share in the authorized capital; and/or

b) immediate and/or indirect possession in 10 and more percent of votes of the supreme body of management; and/or

c) direct and/or indirect appointment and/or response of members of governing bodies;

2) bonus - the tax for mineral right paid according to the Tax code of the Kyrgyz Republic;

3) the recovered mineral deposits - the fields of sand-gravel deposits in beds of the rivers which are recovered in the natural way in case of their development;

4) selective development - violation of the engineering design the selective extraction from subsoil of the most productive inventories with decrease in industrial value of the remained inventories in subsoil;

5) geological information on subsoil - the geological, mining, technological, economic data (data) on geological structure and history of development of subsoil, structure, properties and on conditions of bedding of rocks, underground waters, minerals and other geological educations, on geophysical and geochemical fields, and also on methods and results of studying and use of subsoil, on the extracted mineral raw materials containing in geological reports, cards, tests, test reports and other materials;

6) geological information resources - the cumulative documents and geological materials containing geological and other information on subsoil;

7) geological branch - the subsoil plot provided for geological studying of subsoil and determined in graphical documentation in rectangular two-dimensional system of coordinates by its angular points;

8) geological studying of subsoil - carrying out geological and search, prospecting, regional geological and film-making, geological, geophysical and other work types;

9) geological and search works - the geological researches including stages of the regional, general and detailed search, and also search and estimative works directed to identification of manifestations and mineral deposits with assessment of their forecast resources and feasibility of carrying out on them exploration works;

10) exploration works - the geological researches including stages of preliminary and detailed investigation of the subsoil plot, including underground waters and thermal resources for the purpose of studying and preparation them to development with determination of quantity and quality of minerals, their technological properties, geological, mining, hydrogeological and other conditions of development;

11) mountain property - the real estate created or acquired by the subsoil user within land, mountain or geological branch, providing use of natural resources;

12) mountain branch - the subsoil plot which depth is determined by depth of distribution of the corresponding minerals, provided for development of minerals and determined in graphical documentation in rectangular three-dimensional system of coordinates by its angular points, and also the subsoil plot provided for placement of the objects which are not connected with development of minerals;

13) group of minerals - types of the minerals combined by community of signs. For the purposes of this Law the following groups of minerals are allocated:

a) 1 group - oil and gas;

b) The 2nd group - fresh and mineral underground waters;

c) 3rd group - other minerals;

14) well output - the maximum quantity of mineral which can be got from well for unit of time;

15) off-balance inventories - the inventories of minerals considered in the State stock balance of minerals of the Kyrgyz Republic as economically inexpedient or impossible for development at the time of their accounting or inventory;

16) the lands provided for use of natural resources - the parcels of land provided to the subsoil user for the development of minerals performed based on the license for mineral right, the concession treaty, the production sharing agreement and state registration provided by this Law and construction of facilities of infrastructure (the roads, warehouses, tailings dams, the power transmission line, the field camp and other infrastructure facilities used only for the purpose of subsurface use) determined in graphical documentation in rectangular system of coordinates by its angular points;

17) zone of sanitary protection - the territory around source of water supply and water construction where the particular treatment excluding or limiting possibility of their pollution or infection is set;

18) infrastructure - complex of the interconnected structures and/or objects constituting and providing activities for subsurface use;

19) initiative of transparency of the extracting industries (further - IPDO) - the global international standard promoting ensuring transparency of the income from activities of the extracting industries, providing carrying out reconciliation of payments of the companies and income gained by the Cabinet of Ministers of the Kyrgyz Republic and regular informing the general public;

19-1) historical costs - the total costs of last years incurred by the state on work on geological studying of the licensed area and geological investigation of fields, information on which is available in the State geological information fund;

20) preservation - the temporary termination of geological and search, exploration works and/or mining of the minerals and/or works connected with construction and operation of mountain or other property, with preserving possibility of continuation of the stopped works;

21) liquidation of mountain property - complex of the actions performed in case of the termination of subsurface use and excluding possibility of further use of property, and also ensuring safety of life and health of the population, protection of subsoil and the environment;

22) the licensee - the physical person or legal entity having the license for mineral right and registered according to the legislation of the Kyrgyz Republic;

23) the licensed area - the site of the land surface corresponding to mountain and geological branches on which the license for mineral right is granted, and determined in graphical documentation in rectangular two-dimensional system of coordinates by its angular points; the size of the licensed area is expressed in square kilometers or hectares;

24) licensed body (licensor) - authorized state body on subsurface use;

25) the license agreement - integral part of the license in which conditions of use of natural resources are determined;

26) the license for mineral right - the document certifying right to use by the subsoil plot, issued by licensed body according to this Law;

27) the mineral deposit is the subsoil plot containing the estimated minerals which development is industrially reasonable;

28) subsoil - the part of crust located below soil layer, and in case of its absence - below the land surface and bottom of reservoirs and water currents, stretching to depths available to geological studying and development, including loose shows of minerals;

29) independent examination - the expertize of engineering designs on carrying out the corresponding works which is carried out by the impartial persons which underwent accreditation in the procedure established by the legislation;

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