ORDER OF THE MINISTER OF INVESTMENTS AND DEVELOPMENT OF THE REPUBLIC OF KAZAKHSTAN

of May 24, 2018 No. 375

About approval of rules of control of observance of conditions of contracts and (or) licenses for subsurface use

According to part two of Item 1 of article 66 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 control of observance of conditions of contracts and (or) licenses for subsurface use.

2. To provide to department of subsurface use of the Ministry for Investments and Development of the Republic of Kazakhstan in the procedure 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 on paper and electronically 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) placement of this order on Internet resource of the Ministry for Investments and Development of the Republic of Kazakhstan after its official publication;

4) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Legal Department of the Ministry for Investments and Development of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1), 2) and 3) of Item 2 of this order.

3. To impose control of execution of this order on the supervising vice-minister of investments and development 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 investments and development of the Republic of Kazakhstan of May 24, 2018 No. 375

Rules of control of observance of conditions of contracts and (or) licenses for subsurface use

Chapter 1. General provisions

1. These rules of control of observance of conditions of contracts and (or) licenses for subsurface use (further - Rules) are developed according to part two of Item 1 of article 66 of the Code of the Republic of Kazakhstan of December 27, 2017 "About subsoil and subsurface use" (further - the Code) and determine procedure of control of observance of conditions of contracts and (or) licenses for subsurface use, except for contracts and (or) licenses for investigation and (or) hydrocarbon production and production of uranium.

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 contracts (or) licenses for subsurface use) (further - the subsoil user) conditions of contracts (or) licenses 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 under the contracts and (or) licenses for subsurface use performed according to the Entrepreneurial code of the Republic of Kazakhstan of October 29, 2015.

3. Control of observance by subsoil users of conditions of contracts and (or) licenses for subsurface use is performed by competent authority (the state body which is the contract party and (or) granted the license for subsurface use).

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

5. In case of need amendments of the data received in case of control of observance by subsoil users of conditions of contracts and (or) licenses for subsurface use, competent authority (the state body which is the contract party and (or) granted the license for subsurface use) in writing requests the relevant information from the subsoil user.

Chapter 2. Procedure of control of observance of conditions of contracts and (or) licenses for subsurface use

Paragraph 1. Monitoring of accomplishment by subsoil users of contract obligations and (or) to licenses for subsurface use

6. Monitoring of accomplishment by subsoil users of contract obligations and (or) to licenses for subsurface use (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. Identification of breach of contract and (or) the license by results of monitoring of observance by subsoil users of conditions of contracts and (or) licenses is the basis for the direction to the subsoil user of the notification on elimination of the revealed violation.

The notification on elimination of the revealed violation goes no later than fifteen calendar days from the date of violation identification.

8. In case of violation by the subsoil user of terms of the contract the competent authority (the state body which is the contract party) the written notice specifies the subsoil user's obligation on elimination of such violation at the scheduled time.

If terms of the contract do not provide other, the term of elimination of violations by the subsoil user of terms of the contract on physical amount of obligations shall not exceed six months, according to financial liabilities - three months, to other terms of the contract - one month from the date of receipt of the written notice.

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