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THE CODE OF THE REPUBLIC OF ARMENIA ABOUT THE SUBSOIL

of December 17, 2011 No. ZR-280

(as amended on 17-06-2021)

Accepted by General Court of the Republic of Armenia on November 28, 2011

Chapter 1 General provisions

Article 1. Subject of regulation of the Code

1. This Code establishes the principles and procedure for use of natural resources in the territory of the Republic of Armenia, the relations connected with management and conversion of waste of subsurface use, environmental protection from harmful effects when using subsoil, work safety, and also protection of the rights and legitimate interests of the state and persons during use of natural resources are governed.

2. Features of geological studying and oil extraction and natural gas are established by the separate law.

3. Features of production of radioactive raw materials are established by the separate law.

4. Features of production of underground fresh waters are established by the Water code of the Republic of Armenia.

5. The subsurface use relations connected with designing, engineering-geological studying and building of town-planning objects (including fully or partially underground) are established by the Law of the Republic of Armenia "About town planning" and the legal acts providing its application.

Article 2. Legislation of the Republic of Armenia on subsoil

1. The legislation of the Republic of Armenia on subsoil includes relevant provisions of the Constitution of the Republic of Armenia, the Civil code of the Republic of Armenia and the Strategy of homeland security of the Republic of Armenia, this Code and other legal acts adopted according to it.

2. If international treaties of the Republic of Armenia establish other regulations than provided by this Code, then regulations of the corresponding international treaties are applied.

Article 3. The basic concepts used in the Code

1. In this Code the following basic concepts are used:

1) subsoil - the part of crust located on depth below soil layer, and in case of its absence - below the Earth's surface and bottom of reservoirs and water currents which is available to use of natural resources;

2) geological studying - complex of geological works in subsoil which purpose is studying of structure of crust, conditions of formation of breeds, exogenous geological processes, volcanic activities, and also identification and assessment or revaluation of inventories of minerals;

3) use of natural resources or conversions of waste of subsurface use - use of subsoil for the purpose of geological studying, mining;

4) the subsoil user - the legal entity (including the commercial organization of foreign state) performing use of natural resources according to this Code;

4. 1) ceased to be valid

5) consent to geological studying of subsoil - consent granting the right to implementation on certain subsoil plot:

a) regional geological studying - regional geologic-geophysical works, geological shooting (mapping), geochemical, seismological, hydrogeological and engineering-geological researches, research, paleontologic and other works directed to general geological studying of subsoil

b) geological works on studying of volcanic activities, monitoring of exogenous geological processes,

c) creations of mineralogical, paleontologic and other geological collections, collection of art and semiprecious stones,

d) the description and protection of the geological objects having scientific, cultural, esthetic and other value (unique geological educations, nature sanctuaries, caves and other);

6) permission to geological studying for the purpose of mining - the permission granting the right to implementation on certain subsoil plot of geological studying for the purpose of identification of minerals, revaluation of field reserves or geographically allocated site of the field;

7) permission to mineral production - the permission granting the right to implementation on certain subsoil plot of works on mining and (or) conversions of waste of subsurface use;

8) mineral right - exclusive rights on the geological studying of certain subsoil plot or production on it of minerals certified by the corresponding consent or permission to use of natural resources, the program or the project of use of natural resources, the agreement on use of natural resources, the act of mountain branch;

9) the subsoil plot - the part of subsoil having certain geographical konturirovaniye on which works on use of subsoil shall be carried out;

10) mineral - the firm mineral educations containing in subsoil, liquid or gaseous components, including underground waters (fresh and mineral) and geothermal power, ground deposits of reservoirs, water currents which chemical composition and physical properties allow to use them directly or after conversion;

11) mineral inventories - mineral deposits, amount, quantity, quality and territorial arrangement and which form are determined;

12) the field - the subsoil plot containing mineral inventories (including predicted) which received geological economic evaluation;

13) dump of industrial wastes – the subsurface use waste (including, tails) which appeared as a result of research, gettings or conversions of minerals located on the land surface or in mountain hollows;

14) shows of mineral - the subsoil plot in which availability of mineral which amount, quality and industrial value are not determined yet is revealed;

15) stock balance of minerals - form of the state accounting of the revealed inventories of minerals as of January 1 every year containing data on quantity, quality and degree of study of inventories of the reconnoitered fields, and also on their change during the accounting period;

16) the inventory of fields and shows of minerals - the systematized summary information on fields and shows of minerals including all revealed objects irrespective of their type, the sizes, degrees of study and industrial value;

17) mining - removal of mineral from fields and complex of works on extraction of the useful components containing in them;

18) mountain branch - the document issued by authorized body to the subsoil user fixing coordinates of extreme points of the subsoil plot allocated for the purpose of placement of complex on mineral production which is inseparable part of mineral right;

19) geological information - data on structure, structure of the subsoil plot, availability, quantity and other properties of the minerals which are available in it, and also on technical and economic indicators of nedpropolzovaniye;

20) complex on mineral production - set of buildings, constructions, the placed equipment, communications or other infrastructure built for the purpose of production and conversion of mineral;

21) the project - the document developed for the purpose of implementation of works on production of mineral and which passed the examination according to the procedure, established by the legislation;

22) the program of geological investigation - the document on performing works on geological studying approved with authorized body;

23) the agreement on use of natural resources - the written agreement between authorized body and the subsoil user who establishes conditions of provision of the right to this use of natural resources (geological studying or production of mineral), the rights and obligations of the Parties;

24) authorized body - the state body authorized by the Government of the Republic of Armenia (further - the Government) and performing the powers allocated for it by this Code in the field of use of natural resources;

25) recultivation works - the actions for recovery (to reduction in condition, safe or suitable for use) the lands broken as a result of use of natural resources provided for the purpose of conservation and the environment by the project of mining or the program of geological investigation for the purpose of mining according to the requirements to recultivation of lands established by the Land code of the Republic of Armenia;

26) standards - requirements imposed to the quality and amount of mineral, environment determining technical and economic indicators of operation of the field;

27) the exclusive applicant - the carrier of mineral right on implementation of geological studying of subsoil for the purpose of mining which submitted in authorized body the application for acquisition of right to production of mineral on this subsoil plot;

28) special permission - the permission granting the right to carry out works on geological studying of radioactive raw materials to the legal entities having the corresponding working experience;

28. 1) fund of environmental protection – the amounts allocated with subsoil users for the off-budget account opened in the Central Treasury addressed to authorized body who are directed to realization of the purposes, stipulated in Article 61 of this Code;

28. 2) financial guarantee – the guarantee provided by management plans waste of subsurface use and conversion of waste of subsurface use, for the purpose of ensuring compensation of shortcomings or the caused damages as a result of operation, closing of objects of waste of subsurface use and objects for conversion of waste of subsurface use, implementation of the actions provided by the law after closing, conversion, use or neutralization of waste, and also the specified actions, this by the legal entities satisfying the criteria established by the Government of the Republic of Armenia, and represented to the state authorized body of management in the field of the environment, in connection with use of subsoil;

28. 3) other financial offers and guarantees – the financial offers and guarantees represented for the purpose of receipt of the right to getting of minerals which contain details about work of fields, capital and functional expenditures;

28. 4) financial guarantees of the program of closing of the field – financial guarantees which are represented for the purpose of providing implementation of actions, provided by the program of closing of the field;

29) ceased to be valid according to the Law of the Republic of Armenia of 01.11.2016 No. ZR-161

30) additional exploration - exploration works in wings, the deep horizons, the isolated sites of the operated field as a result of which the addition of inventories of low categories to higher categories and accounting of newly opened inventories is performed;

31) operational investigation - is performed during the entire period of operation of the field, in its result high-quality and technological properties of morphology, conditions of bedding of ore bodies and minerals, mining and hydrogeological conditions of their operation are specified, and also operational accounting of movement of inventories is made;

32) the request for provisional estimate of impact for the environment – document package, established by part 4 of article 16 of the Law "About Assessment and Examination of Impact on the Environment";

33) the management plan conservation - the actions planned for the purpose of decrease in ecological losses, their irretrievable impact owing to use of natural resources, both clear and measurable measures of monitoring of their implementation during certain period;

34) rational and complex use of subsoil - application during use of natural resources of such technologies in case of which possible reduction of losses of mineral can take place and the maximum economic benefit will be received;

35) waste from use of subsoil – is applied in understanding which is stipulated in Clause 4 Laws of the Republic of Armenia "About waste";

36) the tailings dam – the hydraulic engineering construction on storage of the solid or liquid waste which resulted from mineral processing;

37) tails – solid or semi-fluid waste which appears during processing (including, crushing, crushing, dimensional sorting, enrichment and use of other physical and chemical technologies);

38) object of waste of subsurface use – the territory, the place, inclusive, any barrier or any other structure (including tailings dams) which is provided for the content purpose inside, restrictions or services in any other manner by support where gather, accumulate, stored, removed, are neutralized, take place or buried subsurface use waste (in firm, liquid or semi-fluid state). Objects of waste of subsurface use are not those territories (including, the cut-through wells) where waste of subsurface use after getting of minerals, for the purpose of recovery or construction was moved. The last are waste in sense of the Law of the Republic of Armenia "About waste", and the related relations are governed by the Law of the Republic of Armenia "About waste";

39) dangerous wastes of subsurface use - subsurface use waste which the physical, chemical or biological properties create or can create health hazard of people and the environment, and special methods, forms, means for the treatment of them are required;

40) subsurface use waste management – actions for collection, transportation, neutralization, accumulating, storage, removal, placement, burial, processing, conversion of waste of subsurface use which are directed to prevention or possible reduction of negative impact of objects of waste of subsurface use and waste of subsurface use by means of management;

41) conversion of waste of subsurface use – implementation of technological actions which are connected with change of mechanical, physical, chemical or biological properties of waste and which purpose is extraction of minerals from subsurface use waste, including, change of its sizes, classification, separation, conversion of waste;

42) object of conversion of waste of subsurface use - the objects of waste of subsurface use which are in which waste of subsurface use are exposed to processing, conversion or utilization;

43) the management plan subsurface use waste - the comprehensive document of waste management of subsurface use which describes actions for collection, transportation, neutralization, accumulating, storage, removal, placement, waste disposal in objects of subsurface use which are necessary for implementation of the purposes provided by this Code. At the same time, the management plan waste of subsurface use develops and represent to the state authorized body of management in the field of the environment, in connection with use of subsoil, all subsoil users;

44) the plan of conversion of waste of subsurface use - the comprehensive document of conversion of waste of subsurface use which describes actions for management of objects of conversion of waste of subsurface use and management, processing, conversion or utilization of the subsurface use waste which is in them which are necessary for implementation of the purposes provided by this Code. At the same time, the plan of conversion of waste of subsurface use develops and represent to the state authorized body of management in the field of the environment in connection with use of subsoil, only those subsoil users who intend to process subsurface use waste;

45) the best possible technology – set of the technical means and methods necessary for implementation of the activities provided by this Code which whenever possible prevent or minimize negative impact on the environment, including, emissions of dangerous substances in the environment;

46) the provisional agreement – the written agreement signed between authorized body and person, the declared winner in the competition announced for provision of the right to subsurface use by which are established the statement for acquisition of right to subsurface use with the purpose of geological research of radioactive raw materials, the request for provisional estimate of impact for the environment and terms of representation of materials of geological research for examination.

47) the monitoring planned for the purpose of decrease in ecological losses, prevention of irreversible impact owing to subsurface use - process of the overview of state of environment and natural resources by regular studying in time and space and the factors influencing them, assessment and the forecast of situation.

48) the public report - the report open for publication represented to authorized body and the office of the Prime Minister by subsoil users and the state bodies provided by parts 3 and 4 of article 9 of this Code;

49) production of nonmetallic minerals – extraction from subsoil of the nonmetallic minerals which are not registered on the state balance of minerals from the territory of construction of the transport ways or means of communication or tunnels or water storage basins or underground storage warehouses which are object of the extreme importance;

50) one-time permission to production of nonmetallic minerals – the right to making of production on the subsoil plot within the territory of construction of the transport ways or means of communication or tunnels or water storage basins or underground storage warehouses which are object of the extreme importance for the purpose of construction or operation of this object;

51) geographically allocated site of the field - the allocated site of the field which is registered on the state stock balance of minerals which is registered under the separate name and border markers;

52) the field like river deposits - the alluvial territory of the rivers which contains renewable inventories of the sand (gravel, gravel and pebble mix) which is saved up as a result of river floods which received geological economic evaluation;

53) the real beneficiary - in case with the legal entity having the right to geological studying for the purpose of production of metal mineral or to production of metal mineral or requesting it it is right - physical person which:

and. directly or indirectly owns 10 and more percent of shares (shares, shares) of this legal entity granting voting power or directly or indirectly has participation in the authorized capital of the legal entity in the amount of 10 and more percent;

. has the right to appoint or dismiss most of members of governing bodies of the legal entity;

received gratuitously from the legal entity benefit in the amount of at least 15 percent of the profit got by this legal entity within the year preceding accounting year century;

exercises real (actual) control concerning the legal entity other means;

is the official performing common or current directorship of activities of this legal entity if there is no physical person conforming to requirements the subitem of "a"-"g" of this Item.

Persons to whose duties the submission of the declaration on interests provided by the Law of the Republic of Armenia "About public service" persons holding positions of the President of the republic, the chairman of National assembly, the Prime Minister, vice-Prime Ministers, advisers to ministers, diplomatic representatives of the Republic of Armenia, the adviser to the secretary of National Security council, the chief adviser to the Prime Minister, ambassador at large, and also the faces which are considered in sense of the Law of the Republic of Armenia "About public service", members of the family of such persons on the bases provided by subitems "an" and "v" of this Item belongs are considered as real beneficiaries of the legal entity, irrespective of the size of the voices which are available for them and the received benefit;

54) the statement containing the information about real beneficiaries - the statement containing the complete information about the legal entity, issued from the unified state register which includes data on state registration of real beneficiaries of the legal entity.

Article 4. Bases of the legislation of the Republic of Armenia on subsoil

1. Treat bases of legal regulation of the relations connected with use and protection of subsoil:

1) safety of the population and environmental protection;

2) recognition of subsoil as exclusive property of the state;

3) creation and implementation of state programs in the field of use and protection of subsoil;

4) implementation of the state control of use and protection of subsoil;

5) implementation of the state accounting, creation of stock balance of minerals, maintaining the state inventory of fields, shows of minerals and implementation of the state accounting of works on geological studying;

6) ensuring rational and complex use of subsoil;

7) conducting state examination in the field of use and protection of subsoil;

8) implementation of the state regulation in the field of use and protection of subsoil;

9) publicity of the activities connected with use of natural resources;

10) paid nature of use of natural resources;

11) the state control in the field of management and conversion of waste of subsurface use, for the purpose of safety of the population and environmental protection.

Article 5. Safety of the population, environmental protection

1. Subsoil plots are provided in use with condition of observance by subsoil users of requirements of the legislation connected with environmental protection and protection of life and human health.

Article 6. Creation and implementation of state programs in the field of use and protection of subsoil

1. For the purpose of implementation of requirements of the legislation of the Republic of Armenia on subsoil development, approval and implementation of the state programs providing the actions directed to protection and rational and complex use of subsoil are performed.

2. Republican, regional and local programs for use and protection of subsoil affirm the Government.

3. Financing of state programs on use and protection of subsoil is performed from means of the government budget, and also other sources which are not prohibited by the law.

Article 7. Conducting examination in the field of use and protection of subsoil

1. In the field of use and protection of subsoil the following types of examinations are performed:

1) subsurface logical;

2) impacts on the environment;

3) technical safety.

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