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ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of April 26, 2018 No. 141

About approval of Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium

According to Item 5 of Article 122 and Item 5 of article 174 of the Code of the Republic of Kazakhstan of December 27, 2017 "About subsoil and subsurface use" I ORDER:

1. Approve the enclosed Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium.

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 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 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.

Minister of Energy of the Republic of Kazakhstan

K. Bozumbayev

It is approved

The deputy prime minister of the Republic - the Minister of Agriculture of the Republic of Kazakhstan

May 28, 2018

 

________________ U. Shukeev

It is approved

Minister of investments and development of the Republic of Kazakhstan

May 14, 2018

 

________________ Zh. Kasymbek

It is approved

Minister of national economy of the Republic of Kazakhstan

May 11, 2018

 

________________ T. Suleymenov

Approved by the Order of the Minister of Energy of the Republic of Kazakhstan of April 26, 2018 No. 141

Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium

Chapter 1. General provisions

1. These rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium (further - Rules) are developed in compliance with Item 5 of Article 122 and Item 5 of article 174 of the Code of the Republic of Kazakhstan of December 27, 2017 "About subsoil and subsurface use" and determine procedure for the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium.

2. In these rules the following basic concepts are used:

1) damage - the loss suffered by the state, determined proceeding from amount of the actual losses in case of development and (or) primary inventory conversion of the hydrocarbons or uranium exceeding their normalized losses;

2) the normalized losses of hydrocarbons or uranium - the losses of hydrocarbons or uranium which are technologically connected with the accepted methods and systems of carrying out transactions on subsurface use on hydrocarbons or production of uranium which level is proved by technical and economic calculations in project documents for carrying out the transactions on subsurface use approved in the procedure for the Republic of Kazakhstan established by the legislation;

3) the actual losses - the losses determined at the time of calculation of damage.

3. These rules extend to all subsoil users, including to operators under the contract for subsurface use, trustees (further - the subsoil user) on hydrocarbons and (or) production of uranium, irrespective of patterns of ownership.

4. Damage assessment, caused owing to violation of requirements for rational and complex use of subsoil, is performed upon detection of damage:

in case of exploration and production of hydrocarbons - authorized body in the field of hydrocarbons;

in case of uranium production - authorized body in the field of uranium production.

5. The disputes arising in connection with damage assessment are permitted according to the procedure, established by the legislation of the Republic of Kazakhstan.

Chapter 2. Procedure for the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium

6. The extent of the damage caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium is determined proceeding from amount of the actual losses in case of development and (or) primary inventory conversion of the hydrocarbons or uranium exceeding their normalized losses and determined in value term by average price of sales of products by the subsoil user for the accounting period.

7. If the subsoil user did not sell products in the accounting period, the cost of products is determined proceeding from average price of realization in the previous accounting period in which such realization took place. In the presence of official quotations of the prices, their average cost for the accounting period according to these quotations is applied.

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