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ORDER OF THE MINISTRY OF ENVIRONMENT PROTECTION AND NATURAL RESOURCES OF UKRAINE

of February 28, 2024 No. 212

About approval of the Procedure and conditions of risks insurance in case of industrial development of oil and gas deposits

According to article 39 of the Law of Ukraine "About oil and gas", Item 8 of the Regulations on the Ministry of environment protection and natural resources of Ukraine approved by the resolution of the Cabinet of Ministers of Ukraine of June 25, 2020 No. 614, I ORDER:

1. Approve the Procedure and conditions of risks insurance in case of industrial development of oil and gas deposits.

2. To provide to management of circular economy and subsurface use (Yuli RADCHENKO) submission of this order on state registration in the Ministry of Justice of Ukraine.

3. This order becomes effective from the date of its official publication.

4. To impose control over the implementation of this order on the deputy minister concerning the European integration Evgeny FEDORENKO.

Approved by the Order of the Ministry of environment protection and natural resources of Ukraine of February 28, 2024, No. 212

Procedure and conditions of risks insurance in case of industrial development of oil and gas deposits

1. Liability insurance on insurance class 13, determined by article 4 of the Law of Ukraine "About insurance", during industrial development of oil and gas deposits in the cases provided by the Law of Ukraine "About oil and gas" (further - liability insurance), is carried out for the purpose of ensuring the indemnification caused by the insurer to the surrounding environment in connection with accident or technical malfunctions in case of development of the oil and gas field and also to state-owned property which was provided in use, during the term of industrial development of oil and gas deposits.

2. In this Procedure and conditions terms are used in the following sense:

accident - the dangerous event of technogenic nature which took place during industrial development of oil and gas deposits and entailed defeat, injuring of the population or creates on object or the separate territory threat of life or to health of the population and leads to destruction of buildings, constructions, the equipment and vehicles, violation of production or transport process or causes above-standard, emergency emissions of pollutants and other harmful effects on the surrounding environment;

technical malfunctions - unforeseen failure of the equipment which is used during industrial development of oil and gas deposits, as a result of which the harm to the surrounding environment which is not caused by accident and caused is done:

energy overload, overheat, vibration;

action of the electric power in the form of short circuit of electric current, power supply network overload, undervoltage;

action of low temperatures;

water hammer or shortage of liquid in the coppers, steam generators, other devices working with the help of vapor or liquid;

gap of cables and chains.

Other terms are used in the value given in the Laws of Ukraine "About oil and gas" and "About insurance".

3. Subjects of liability insurance are:

1) the insurer - the person who signed the insurance contract of responsibility with the insurer or being the insurer according to the legislation namely the subject of managing which is performing industrial development of oil and gas deposits according to special permissions to use of oil-and-gas subsoil and signed with the insurer the insurance contract of responsibility for harm which can be caused to the surrounding environment in connection with accident or technical malfunctions in case of development of the oil and gas field and/or to state-owned property which was provided in use, during the term of industrial development of oil and gas deposits (further - the insurance contract of responsibility);

2) the insurer - financial institution or the branch of the nonresident insurer which obtained in accordance with the established procedure license for activities on direct insurance on insurance class 13, determined in article 4 of the Law of Ukraine "About insurance" (risks within this class of insurance) taking into account requirements of the regulatory legal act of the National Bank of Ukraine in which characteristics and classification signs of classes of insurance are determined;

3) the injured third parties - physical persons and legal entities to which direct harm by the insurer owing to accidents or technical malfunctions is done in case of development of the oil and gas field and/or destruction/damage of state-owned property which was provided in use, during the term of industrial development of oil and gas deposits.

4. The subject of the agreement of liability insurance is transfer by the insurer for a fee of the risk connected with object of insurance, to the insurer on the conditions determined by such insurance contract of responsibility and the presents Procedure and conditions.

Subject of the insurance contract of responsibility is responsibility for the harm to the surrounding environment done by the insurer in connection with accident or technical malfunctions in case of development of the oil and gas field, and also to state-owned property which was provided in use, during the term of industrial development of oil and gas deposits.

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