LAW OF THE AZERBAIJAN REPUBLIC

of February 13, 1998 No. 439-IQ

About subsoil

This Law governs the relations arising in connection with studying (search, investigation), rational use and protection of subsoil of the territory of the Azerbaijan Republic, including the Azerbaijani sector of the Caspian Sea (lake) with safe work, provides when using subsoil protection of interests of the state, subsoil users and citizens when using subsoil.

Chapter I. General provisions

Article 1. Main terms and concepts

In this Law the following main terms and concepts are applied:

subsoil - the part of crust located below the land surface or soil layer, bottom of water objects (reservoirs), stretching to depths available to studying and development, consisting of rocks, mineral raw material resources, energy carriers (oil, gas, etc.), natural and artificial cavities, geological and technogenic educations;

the subsurface use relations - the relations in the field of use, studying, development and protection of subsoil;

minerals - the natural mineral formations of crust used in the field of production of goods;

popular minerals - popular minerals in natural type or undergone to minor changes, used for requirements of local economy;

technogenic educations - the waste which accumulated in the land surface or subsoil mining, processing and other types of productions, the containing mineral substances;

core - the tubular sample of rock taken for studying of geological section of subsoil;

mountain branch - borders of the subsoil provided in use to legal entities and physical persons for the purpose of mining and also constructions not of the related underground constructions.

Article 2. Principles of subsurface use

Subsurface use is based on the principles:

ensuring rational, complex and safe use of subsoil;

ensuring environmental protection;

expansions and consolidations of mineral resources;

publicity of subsurface use;

creating favorable conditions for investment attraction in subsurface use;

subsurface use paid nature.

Article 3. Legislation of the Azerbaijan Republic on subsoil

3.1. The legislation of the Azerbaijan Republic on subsoil consists of the Constitution of the Azerbaijan Republic, this Law, other legal acts and international treaties of the Azerbaijan Republic. The relations on use of subsoil connected with power are regulated by the special rules established by the relevant legislation of the Azerbaijan Republic.

3.2. The relations in the field of use of natural resources in the Alyatsky free economic zone are governed according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

Article 4. Subsurface mineral right

Subsoil in the Azerbaijan Republic belongs to the Azerbaijan Republic without violation of the rights of any physical persons or legal entities.

Article 5. Single state fund of subsoil

Subsoil of the territory of the Azerbaijan Republic entirely creates single state fund which consists as of the used, not used parts of subsoil.

Article 6. Obligations of public authorities in the field of regulation of the relations of subsurface use

In the field of regulation of the relations of subsurface use the state performs the following obligations:

performs state policy in the field of subsurface use;

allocates the parcels of land for the purpose of subsurface use;

establishes instructions for use subsoil and their protection, rational development of mineral raw material resources, develops the conforming standards (standard rates and rules), classification of inventories and forecast resources of minerals;

signs the international agreements on geological studying, use and protection of subsoil, applies system of permissions according to this Law and the Law of the Azerbaijan Republic "About licenses and permissions";

protects the rights of subsoil users and interests of citizens of the Azerbaijan Republic connected with subsurface use;

develops and performs state programs on geological studying of subsoil and development of mineral resources;

determines procedure for collection of payment for use of natural resources;

creates the state fund for financing of expansion of mineral resources and geological studying of subsoil;

creates fund of geological information on subsoil, establishes procedure for its use;

carries out state examination of the geological information allowing to estimate explored reserves of minerals and feature of subsoil;

performs maintaining the state stock balance of minerals and the state inventory of fields and shows of minerals;

establishes the list of popular minerals;

establishes the list of popular minerals;

performs state registration of the works connected with geological studying of subsoil;

performs state registration of the subsoil plots used for mining and construction of the underground constructions which are not connected with mining;

performs coordination and registration of the research and development works connected with subsurface use;

establishes procedure for storage and protection of core and the tests having scientific and practical value in studying of subsoil;

exercises the state control of rational and safe use, protection and geological studying of subsoil;

introduces restrictions for use of natural resources for the purpose of protection of state security, the population, business entities and environmental protection.

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