ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of May 5, 2018 No. 160

About approval of Rules of monitoring of accomplishment by subsoil users of contract obligations on subsurface use

According to Item 2 of article 66 of the Code of the Republic of Kazakhstan "About subsoil and subsurface use" I ORDER:

1. Approve the enclosed Rules of monitoring of accomplishment by subsoil users of contract obligations on subsurface use.

2. To provide to department of subsurface use of the Department of Energy of the Republic of Kazakhstan in the procedure for the Republic of Kazakhstan established by the legislation:

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" 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 May 5, 2018 No. 160

Rules of monitoring of accomplishment by subsoil users of contract obligations on subsurface use

Chapter 1. General provisions

1. These rules of monitoring of accomplishment by subsoil users of contract obligations on subsurface use (further – Rules) are developed according to Item 2 of article 66 of the Code of the Republic of Kazakhstan "About subsoil and subsurface use" (further – the Code) and determine procedure for monitoring of accomplishment by subsoil users of contract obligations on exploration and production or hydrocarbon production, and also uranium production (further – the contract for subsurface use).

Chapter 2. Procedure for monitoring of accomplishment by subsoil users of contract obligations on subsurface use

2. Monitoring of accomplishment by subsoil users of contract obligations on subsurface use (further - monitoring) is performed by competent authority by means of the analysis of the reports submitted by subsoil users according to subitems 2) - 7) Articles 132, subitems 3) - 11) article 180 of the Code, and data received from other sources according to the legislation of the Republic of Kazakhstan.

3. The analysis of the reports provided by subsoil users is performed by competent authority within 30 (thirty) working days.

By results of the carried-out analysis of reports, till 1 on the (first) of April, following the accounting period to subsoil users the notification on accomplishment of the financial liabilities established by the contract for subsurface use, less than for thirty percent for accounting year according to the subitem 1) of Item 2 of article 133 of the Code goes.

The term of elimination of violations by subsoil users of terms of the contract on physical amount of obligations does not exceed 6 (six) months, according to the obligation specified in the subitem 1) of Item 2 of article 133 of the Code – 3 (three) months, according to other obligations provided in the contract for subsurface use – 1 (one) month from the date of receipt of the written notice according to Item 3 of article 133 of the Code.

The subsoil user eliminates the allowed violation in time, specified in the notification, and in writing reports about it to competent authority with application of documents, confirming elimination.

According to Item 5 of Article 133 and Item 5 of article 181 of the Code the subsoil user has the right to send to competent authority the offer on prolongation of term of elimination of violation of the obligations provided by the contract for subsurface use with reasons for the reasons of such prolongation. By results of consideration of the offer on prolongation of term of elimination of the allowed violations the competent authority within 10 (ten) working days from the date of its obtaining notifies the subsoil user on consent to prolongation of term or provides motivated refusal in such prolongation.

Notifications, the messages and offers provided by this Item go and move by means of single state management system subsurface use according to the order of the Minister of Energy of the Republic of Kazakhstan of May 11, 2018 No. 170 "About approval of Rules of the notice with use of information systems" (it is registered in the Register of state registration of regulatory legal acts for No. 17012) (further – Rules of the notice with use of information systems).

4. For receipt of the reports provided by the subitem 1) of Article 132 and subitems 1) and 2) of article 180 of the Code, the competent authority sends inquiry to the National operator by collection, storage, processing and provision of geological information.

5. In case of violation by the subsoil user of the obligations provided by the contract for subsurface use, established as a result of monitoring including the acquired information according to Items 2, of 3, of 4 these rules, the competent authority takes concerning such subsoil user measures according to the Code and provisions of the contract for subsurface use.

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