RESOLUTION OF THE CABINET OF MINISTERS OF THE AZERBAIJAN REPUBLIC

of January 9, 1999 No. 2

About approval of Rules of liquidation and preservation of the companies, mining developments, boreholes on mining and the underground installations which are not connected with mining

Due to the execution of the Presidential decree of the Azerbaijan Republic "About application of the Law of the Azerbaijan Republic "About subsoil" of April 27, 1998 the No. 701 Cabinet of Ministers of the Azerbaijan Republic decides:

1. Approve "Rules of liquidation and preservation of the companies, mining developments, boreholes on mining and the underground installations which are not connected with mining" (are applied).

2. This resolution becomes effective from the date of signing.

Approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of January 9, 1999 No. 2

Rules of liquidation and preservation of the companies, mining developments, boreholes on mining and the underground installations which are not connected with mining

1. General provisions

1.1. Due to the execution of the Law of the Azerbaijan Republic "About subsoil", the Presidential decree of the Azerbaijan Republic "About application of the Law of the Azerbaijan Republic "About subsoil" of April 27, 1998 No. 701, in case of completion of effective period of special consent or permission to mining developments, the explorative and operational boreholes connected with conducting exploration works and operation of mineral deposits or in case of early termination of mineral right, and also in case of the temporary termination of their operation for any reason whatsoever, the companies, mining developments, boreholes on mining and the underground installations which are not connected with mining shall be liquidated or preserved.

These rules are obligatory for all irrespective of pattern of ownership of the subsoil users who are engaged in the territory of the Azerbaijan Republic and on the sector of the Caspian Sea (lake) belonging to the Azerbaijan Republic, exploration and production of minerals and construction and operation of the underground installations which are not connected with mining.

1.2. In case of complete or partial liquidation or preservation of the company for mining safety of mining developments and boreholes, life and health of the population, environment protection, buildings and installations shall be provided, and in case of preservation - except listed, safety in former condition of deposits, mining developments and boreholes during preservation.

1.3. In case of liquidation or preservation of the company or part it, mining developments, boreholes on mining, and also the underground installations which are not connected with mining, geological, surveying and other documents shall be added with the data which are available by the time of cessation of work and contain in the Ministry of emergency situations of the Azerbaijan Republic according to the procedure established by the legislation.

1.4. Liquidation and preservation of the company (its one part), mining developments, boreholes on mining or the underground installations which are not connected with mining become effective after signing of the act of liquidation and preservation issued special permission or consent the Ministry of Emergency Situations of the Azerbaijan Republic, the Ministry of Ecology and Natural Resources of the Azerbaijan Republic, the Department of Energy of the Azerbaijan Republic according to activities.

1.5. Duration of term of preservation of the company before recovery of works on mining is determined by the decision of the subsoil user. In case of the expiration of fixed term of preservation, it can be extended only by the body which signed the act.

1.6. Recovery of the companies, mining works and boreholes which are in preservation shall be performed according to the project approved with the Ministry of Emergency Situations of the Azerbaijan Republic, the Ministry of Ecology and Natural Resources of the Azerbaijan Republic, the Department of Energy of the Azerbaijan Republic according to activities approved in the accepted procedure.

2. Receipt of permission to liquidation and preservation

2.1. Subsoil users (if they have superior organizations, then superior organizations) for liquidation and preservation fully or partially of the company, mining developments, boreholes, and also underground installations which are not connected with mining shall send the statement for need of preservation to the address of the Ministry of emergency situations of the Azerbaijan Republic.

Are enclosed to the application:

a) copies of horizontal plans of the land surface and the company, and also the main mountain and graphical documents (the vertical and horizontal projections, cuts) reflecting inventory condition and explorations of minerals, excavations, boreholes, relief and the land surface;

b) technical and economic calculations for reasons for need of preservation, etc.

c) references:

* about remaining balance of balance sheet and off-balance inventories of minerals;

* about inventories of minerals in protective and other integrity with indication of inventory condition;

* about availability of temporarily not used minerals, and also production waste as a part of which there are useful components, and the waste suitable for production of construction materials or complete extraction of useful components;

* about condition of factory and sanitary and household buildings, installations and water waste means;

* about availability of underground cavities, condition of mining developments, the actual, maximum and expected sizes of land landslides.

d) the actions plan, the requirements of the Law of the Azerbaijan Republic providing along with execution "About subsoil" safety of works during liquidation or preservation, prevention of adverse effect on other companies of works on liquidation and preservation, safety of the company, mining developments, boreholes, machines and installations.

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