ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of April 26, 2018 No. 142

About approval of Rules of control of observance of conditions of contracts for subsurface use, including production sharing agreements

According to Item 1 of article 66 of the Code of the Republic of Kazakhstan "About subsoil and subsurface use" I ORDER:

1. Approve the enclosed Rules of control of observance of conditions of contracts for subsurface use, including production sharing agreements.

2. To provide to department of the state inspection in oil and gas complex of the Department of Energy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this order the direction it the copy in paper and electronic type in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information of the Ministry of Justice of the Republic of Kazakhstan" for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

3) within ten calendar days after state registration of this order the direction it the copy on official publication in periodic printing editions;

4) placement of this order on Internet resource of the Department of Energy of the Republic of Kazakhstan after its official publication;

5) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Department of Energy of the Republic of Kazakhstan of data on execution of the actions provided by subitems 2), 3) and 4) of this Item.

3. To impose control of execution of this order on the supervising vice-Minister of Energy of the Republic of Kazakhstan.

4. This order becomes effective since June 29, 2018 and is subject to official publication.

Approved by the Order of the Minister of Energy of the Republic of Kazakhstan of April 26, 2018 No. 142

Rules of control of observance of conditions of contracts for subsurface use, including production sharing agreements

Chapter 1. General provisions

1. These rules of control of observance of conditions of contracts for subsurface use, including production sharing agreements (further - Rules) are developed according to Item 1 of article 66 of the Code of the Republic of Kazakhstan "About subsoil and subsurface use" (further - the Code) and determine procedure of control of observance of conditions of contracts for exploration and production or hydrocarbon production, and also uranium production, including production sharing agreements (further - contracts).

In case of availability in the production sharing agreements approved by the Government of the Republic of Kazakhstan or in the contract for subsurface use approved by the President of the Republic of Kazakhstan, other procedure of control of observance of conditions of contracts, control of observance of conditions of contracts is exercised according to conditions of such agreements or the contract for subsurface use.

These rules are also applied to the relations on the permissions, licenses and contracts for subsurface use issued and signed before enforcement of the Code according to Item 3 of article 277 of the Code.

2. Control of observance by subsoil users (operators under the contract for subsurface use, trustees) (further - the subsoil user) conditions of contracts is not the state control of observance of requirements of the legislation of the Republic of Kazakhstan on subsoil and subsurface use in the field of carrying out transactions on subsurface use on the hydrocarbons and production of uranium performed according to the Entrepreneurial code of the Republic of Kazakhstan.

3. Control of observance by subsoil users of conditions of contracts is exercised by competent authority (the state body which is the contract party).

4. Control of observance by subsoil users of conditions of contracts is exercised by means of monitoring of accomplishment by subsoil users of contract obligations and visit of the subsoil user, and also objects on which are conducted operations on subsurface use in accordance with the terms of contracts (were performed).

5. The concepts and determinations used in these rules are applied according to the legislation of the Republic of Kazakhstan.

Chapter 2. Procedure of control of observance of conditions of contracts for subsurface use, including production sharing agreements

Paragraph 1. Monitoring of accomplishment by subsoil users of contract obligations

6. Monitoring of accomplishment by subsoil users of contract obligations (further - monitoring) is performed by competent authority by means of the analysis of the reports submitted by subsoil users according to the Code (further - reports), and the data received from other sources according to the legislation of the Republic of Kazakhstan.

Monitoring is performed according to the procedure, determined by competent authority according to Item 2 of article 66 of the Code.

7. No. 182 is excluded according to the Order of the Minister of Energy of the Republic of Kazakhstan of 22.05.2023

8. No. 182 is excluded according to the Order of the Minister of Energy of the Republic of Kazakhstan of 22.05.2023

Paragraph 2. Procedure for visit of the subsoil user, and also objects on which are conducted operations on subsurface use (were performed)

9. Control of observance of conditions of contracts by means of visit of the subsoil user, and also objects on which are conducted operations on subsurface use (were performed) (further - visit) is subdivided on planned and unplanned.

10. Planned visit is performed based on the competent authority of the annual list of visit approved by the head which is placed on Internet resource of competent authority no later than fifteen calendar days prior to implementation of the first planned visit.

11. The annual list of visit (with indication of the bases of inclusion of subsoil users in this list and the visited period) is created for the accounting period from December of the current year to December of the next year.

12. The basis for inclusion in the annual list of visit is non-presentation of reports and (or) submission of doubtful reports and lack of possibility of confirmation of the fact of failure to carry out of contractual terms by results of monitoring.

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