THE ORDER OF THE CHAIRMAN OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION OF NATURAL MONOPOLIES

of July 26, 2013 No. 227-OD

About approval of Rules of conducting separate accounting of the income, costs and the involved assets by the subjects of natural monopoly rendering transportation services of oil and (or) oil products on bulk distribution lines

According to the subitem 15) Item 1 of article 14 of the Law of the Republic of Kazakhstan of July 9, 1998 "About natural monopolies" and the subitem 2) Item 3 of article 16 of the Law of the Republic of Kazakhstan of March 19, 2010 "About the state statistics" PRIKAZYVAYU:

1. Approve the enclosed Rules of conducting separate accounting of the income, costs and the involved assets as the subjects of natural monopoly rendering transportation services of oil and (or) oil products on bulk distribution lines.

2. Declare invalid the order of the chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies of September 29, 2005 No. 284-OD "About approval of Rules of conducting separate accounting of the income, costs and the involved assets by the subjects of natural monopoly rendering transportation services of oil and (or) oil products on bulk distribution lines" (registered in the Register of state registration of regulatory legal acts for No. 3908, No. published in "Official newspaper" on November 26, 2005 49).

3. To department on regulation in the field of pipeline and water sewer systems of the Agency of the Republic of Kazakhstan on regulation of natural monopolies (Askarova A. G.) provide:

1) in the procedure established by the legislation state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) publication of this order on Internet resource of the Agency of the Republic of Kazakhstan on regulation of natural monopolies, after official publication in mass media.

4. To department of administrative work of the Agency of the Republic of Kazakhstan on regulation of natural monopolies (Bazarbayev S. P.) after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan:

To provide 1) in the procedure established by the legislation its official publication in mass media with the subsequent provision in Legal department of the Agency of the Republic of Kazakhstan on regulation of natural monopolies (Metenov S. S.) of data on publication;

2) to bring it to the attention of structural divisions of the Agency of the Republic of Kazakhstan on regulation of natural monopolies and subjects of the natural monopolies rendering transportation services of oil and (or) oil products on bulk distribution lines.

5. To impose control of execution of this order on the vice-chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies Alpysbayev A. A.

6. This order becomes effective after ten calendar days after day of its first official publication.

It is approved Oil Minister and gas of the Republic of Kazakhstan August 16, 2013

_______________ U. Karabalin

It is approved Acting as Chairman of the Agency of the Republic of Kazakhstan according to the statistics July 25, 2013

_______________ Zh. Dzharkinbayev

It is approved Acting minister of economy and budgetary planning Republic of Kazakhstan August 9, 2013

_______________ M. Kusainov

Approved by the Order of the Chairman of the Agency of the Republic of Kazakhstan on regulation of natural monopolies of July 26, 2013 No. 227-OD

Rules of conducting separate accounting of the income, costs and the involved assets by the subjects of natural monopoly rendering transportation services of oil and (or) oil products on bulk distribution lines

1. General provisions

1. These rules of conducting separate accounting of the income, costs and the involved assets by the subjects of natural monopoly rendering transportation services of oil and (or) oil products on bulk distribution lines (further - Rules) determine procedure for conducting separate accounting by the subjects of natural monopolies rendering transportation services of oil and (or) oil products on bulk distribution lines (further - subjects or petrotransport organizations), for the purpose of ensuring transparency of accounting of the income, costs and the involved assets by regulated and non-regulated types of service, developments of tariff estimates and calculation of rates for regulated services of the subject of natural monopoly.

2. Separate accounting represents system of collection and generalization of information on the income, costs and the involved assets separately by each type of regulated services and in general on other activities, and also periodic creation and submission by petrotransport organizations of data on conducting separate accounting of the income, costs and the involved assets (further - Data) in department of the authorized body performing management in spheres of natural monopolies (further - authorized body).

3. Basic principles of separate accounting:

1) priority of direct reference in case of possibility of direct reference of the income, costs and the involved assets on the corresponding services on the basis of these source documents;

2) income distribution, costs and the involved assets on the corresponding services on the basis of cause and effect relationship of the income, costs and the involved assets with those services with which they are connected;

3) transparency in case of reference and income distribution, costs and the involved assets on the corresponding types of regulated and non-regulated services;

4) balance between advantage of the provided information and costs for its obtaining;

5) balance between quality characteristics for accomplishment of the main destination of the reporting.

4. Conducting separate accounting by petrotransport organizations shall provide income distribution, costs and the involved assets by types of regulated services and in general on other activities according to provisions of these rules.

5. The basic concepts used in these rules:

1) allocation base - the indicator reflecting dependence between the costs involved by assets, groups of fixed assets and services;

2) joint costs - costs which are used for provision of several services (group of services), but have no certain cause and effect relationship with these services therefore are distributed on the basis of the allocation base determined according to the procedure, established by these rules;

3) jointly the involved assets - the involved assets which are used for provision of several services (group of services), but have no certain cause and effect relationship with these services therefore are distributed on the basis of the allocation base determined according to the procedure, established by these rules;

4) total costs - costs which are connected with provision of all services, but have no certain cause and effect relationship with these services therefore are distributed on the basis of the allocation base determined according to the procedure, established by these rules;

5) the general involved assets - the involved assets which are connected with provision of all services, but have no certain cause and effect relationship with these services therefore are distributed on the basis of the allocation base determined according to the procedure, established by these rules;

6) the involved assets - the assets of petrotransport organization used for provision of certain service, including fixed assets and intangible assets;

7) indirect costs on services - costs which have causes and effect relationships along with several services (group of services) and therefore directly and unambiguously are not carried to certain service, but are distributed on services on the basis of certain allocation base;

8) indirect costs on elements of activities - costs which have causes and effect relationships along with several elements of activities and therefore directly and unambiguously are not carried to certain service or element of activities, but are distributed on elements of activities on the basis of certain allocation base;

9) indirectly the involved assets when rendering services - the involved assets which have causes and effect relationships along with several services (group of services) and therefore directly and unambiguously are not carried to certain service, but are distributed on services on the basis of certain allocation base;

10) indirectly the involved assets on elements of activities - the involved assets which have causes and effect relationships along with several elements of activities and therefore directly and unambiguously are not carried to certain service or element of activities, but are distributed on elements of activities on the basis of certain allocation base;

11) activities - set of certain production processes of services which participate in rendering services as independently, and in interaction with each other;

12) the servicing processes - production processes of services of which servicing of production processes and processes of management is result;

13) production processes of services - the sequence of certain actions in activities of petrotransport organization with use of its resources with ultimate goal of rendering services. Differentiate the following groups of production processes of services: the production processes servicing processes and processes of management;

14) direct costs on services - costs which have direct link with certain service and therefore are directly carried to certain service;

15) direct costs on elements of activities - costs which have direct link with certain element of activities and therefore are directly carried to certain element of activities;

16) directly involved assets when rendering services - the involved assets which have direct link with certain service and therefore have to certain service direct reference;

17) directly involved assets on elements of activities - the involved assets which have direct link with certain element of activities and therefore are directly carried to certain element of activities;

18) activity elements - the groups of fixed assets used when rendering services, including regulated combined for assessment and distribution of their cost and the related costs for activities with subsequent distribution on types of regulated services and in general on non-regulated services;

19) management processes - the production processes of services including the analysis of activities of the company, coordination of the actions directed to increase in efficiency of activities of all company;

20) petrotransport organization - the organization having in property or on other legal causes, trunk oil pipelines, constructions on them, rendering oil transportation services on these oil pipelines;

21) production processes - the processes which are directly directed to production and rendering services;

22) external services - services of petrotransport organizations, including non-regulated, provided to external users of services;

23) transfer payments - value term of amount of the rendered internal services;

24) transfer dachshunds - value term of costs per unit of the rendered internal services;

25) contingent gains - the cost of the rendered internal services determined by multiplication of amount of internal services by transfer dachshund;

26) internal services - the services made by one activities of petrotransport organization and consumed for the purpose of rendering further external service by other activities of the same organization;

27) economic resources - set of sources, the means used in production economic activity, subdivided on natural (raw, geophysical), labor (human capital), capital (the physical capital - fixed assets), current assets (materials), information resources, financial (money capital) resources;

28) economically reasonable costs - the costs of petrotransport organization connected with ensuring operating (regular) activities of petrotransport organization, compensation on the involved capital invested in the involved assets and to the depreciation charges on reproduction of the involved assets.

Other concepts used in these rules are applied according to the legislation on natural monopolies and the Law of the Republic of Kazakhstan of June 22, 2012 "About the bulk distribution line".

6. For distribution of indirect costs and indirectly the involved assets by types of regulated services and in general on non-regulated services the income, costs and the involved assets of petrotransport organizations are grouped in activities.

7. The following types of activities are allocated:

1) oil transportation;

2) other activities.

The scheme of activity of petrotransport organizations is given in appendix 1 to these rules.

The allocated types of activities are minimum and can be expanded in case of need.

8. Activity "Oil transportation" is connected with processes of rendering transportation services of oil. Activity "Oil transportation" renders internal and external services.

Services in water supply, electropower supply, transfer and distribution of electrical energy, heat and power supply and others, rendered for activity "Other activities" belong to internal services.

Services belong to external services:

1) the services in oil transfer including:

general services in oil transfer;

special services in transfer of viscous oil;

2) services in oil acceptance delivery;

3) services in the oil storage which is not connected with oil transportation;

4) services in mixing for the purpose of increase in commercial quality of oil;

5) services in oil transfer;

6) services in oil discharge filling.

Income of activity "Oil transportation" includes contingent gains in the form of transfer payments for internal services and the income from rendering external services. The income from rendering external services is determined by data of source documents. Transfer payments for internal services are determined proceeding from amounts of the rendered internal services and transfer dachshunds in these services.

Activity costs "Oil transportation" include the costs connected with operation, content and servicing of elements of activity "Oil transportation" and transfer payments for the internal services received from other activities.

The involved activity assets "Oil transportation" trunk oil pipelines, stations of the cathode protection, power plant, the boiler rooms, power lines and other assets involved in activity "Oil transportation" are included.

9. Activity "Other activities" is connected with the processes of rendering services providing rendering and realization of other services to external consumers. Activity "Other activities" render internal and external services.

The services in water supply rendered for activity "Oil transportation" for the purpose of ensuring engineering procedures of the specified activity belong to internal services.

Treat the external services provided by activity "Other activities" to external other users:

1) production of heat energy heating boiler rooms;

2) transfer and (or) distribution of electrical and (or) heat energy;

3) water supply services;

4) other types of service provided by petrotransport organizations to external consumers.

Income of activity "Other activities" consists of contingent gains from transfer payments for internal services and the income from rendering external services. The income from rendering external services is determined by data of source documents. Transfer payments for internal services are determined, proceeding from amounts of the rendered internal services and transfer rates on which these services were rendered.

Activity costs "Other activities" consist of the costs connected with operation, content and servicing of elements of activity "Other activities" and transfer payments for the internal services received from other activities.

The involved activity assets "Other activities" the assets connected with rendering and rendering of services to external consumers are included.

10. Conducting separate accounting of the income, costs and the involved assets is made within each activity by each type of regulated services and in general on other activities.

11. When rendering the services which are not provided by Items 8-9 of these rules, their reference to internal and external services is made by petrotransport organizations independently on the basis of the concepts established by subitems 22) and 26) of Item 5 of these rules.

12. Rules of conducting separate accounting of the income, costs and the involved assets of the sphere of natural monopoly with the greatest share of the income in gross annual income from regulated services of the subject are applied to the subject of natural monopoly rendering several regulated types of service.

2. Structure of the income, costs and the involved assets by types of regulated services

13. Separation of the income by types of regulated services is made taking into account the basic principles of separate accounting. The income from rendering regulated services is determined proceeding from the developed amounts of the corresponding types of regulated services and stated prices (rates) for these services.

14. The income from rendering services has by types of regulated services and in general on non-regulated services on the basis of these source documents direct reference.

15. For the purposes of separate accounting of costs are considered by each type of regulated services. If when rendering external service the internal service was used, as a part of costs of regulated service transfer payments for internal service are considered.

16. Costs on provision of each type of regulated services by activity "Oil transportation" consist of transfer payments for the internal services received from activity "Other activities" and also other costs connected with rendering these services.

17. Costs on provision of each type of regulated services by activity "Other activities" consist of the transfer payments for internal services received from activity "Oil transportation" and also other costs connected with rendering these services.

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