LAW OF UKRAINE

of July 12, 2001 No. 2665-III

About oil and gas

This Law determines the main legal, economic and organizational basis of activities of oil and gas industry of Ukraine and governs the relations connected with features of use of oil-and-gas subsoil, production, transportation, storage and use of oil, gas and products of their conversion for the purpose of ensuring energy security of Ukraine, development of the competitive relations in oil and gas industry, protection of the rights of all subjects of the relations arising in connection with geological studying of oil-and-gas content of subsoil, development of oil and gas deposits, oil refining and gas, storage, transportation and oil sale, gas and products of their conversion, consumers of oil and gas and workers of industry.

Section I General provisions

Article 1. Determination of terms

In this Law the stated below terms are used in the following value:

oil and gas industry - industry of economy of Ukraine which together with other industries provides search, investigation and development of oil and gas deposits, transportation, conversion, storage and oil sale, gas and products of their conversion;

senders - the physical persons or legal entities of all patterns of ownership providing delivery to acceptance terminals of the companies of the main pipeline transport of oil, gas or products of their conversion according to the signed agreements;

internal transport service - movement on the territory of Ukraine of oil, gas and products of their conversion as self-produced, and arrived from other countries, for requirements satisfaction of consumers of Ukraine;

gas - mineral which represents hydrocarbon mixture and not hydrocarbon components is in gaseous state in standard conditions (pressure of 760 mm of mercury column and temperature 20 C) and is products;

geological studying of oil-and-gas content of subsoil - complex of works (geological shooting, geophysical, geochemical, aerokosmogeologichesky surveys, direct searches, drilling and testing of the wells, trial development, research and thematic works, their analysis and generalization) which are carried out for the purpose of studying of geological structure and oil-and-gas content of subsoil in certain territory;

the site of oil-and-gas subsoil - the part of crust limited on the area and depth on which special permission to use of oil-and-gas subsoil is in accordance with the established procedure provided;

trial operation of underground gas storage - carrying out on the object of complex of works chosen for creation of storage, including pilot pumping and gas offtake, for the purpose of refining of possible maximum amount of gas storage, other mining-and-geological parameters and technical and economic indicators of storage and the choice of rational option of its complete arrangement;

trial mining of oil and gas - stage of geological studying of the field at which production from the field of limited amount of oil and gas for the purpose of determination of its industrial value, refining of the mining-and-geological and technological parameters necessary for stock counting of oil, gas and the accompanying components and reasons for the choice of rational method (technology) for industrial mining is performed;

the paragraph the eleventh is excluded;

the agreement on conditions of use of oil-and-gas subsoil which is integral part of special permission to use of oil-and-gas subsoil, - the agreement between the central executive body realizing state policy in the field of geological studying and rational use of subsoil and the applicant on receipt of special permission to use of oil-and-gas subsoil about technical, technological, organizational, financial, economic, social, ecological liabilities of the parties and about procedure for regulation of the relations between them in the course of use of oil-and-gas subsoil on the provided subsoil plot;

the main pipeline transport of oil and gas - technological complex - the separate pipeline (or set of pipelines) and related single engineering procedure objects by means of which the oil supply and gas to consumers, including transit delivery through the territory of Ukraine is performed;

use of oil-and-gas subsoil - geological studying and development of oil-and-gas subsoil for the purpose of search and investigation of the oil and gas deposits, oil and gas extraction or their storage, return (burial) accompanying and sewage, other waste got in the course of investigation and development of oil and gas deposits;

the user oil-and-gas subsoil - the legal entity or physical person having special permission to use of oil-and-gas subsoil for the purpose of search and investigation of the oil and gas deposits, oil and gas extraction or their storage, return (burial) accompanying and sewage, other waste got in the course of investigation and development of oil and gas deposits;

oil - mineral which represents hydrocarbon mixture and the components dissolved in them which are in liquid state in standard conditions (pressure of 760 mm of mercury column and temperature 20 C) and is products;

oil-and-gas subsoil - the part of crust located under land surface and bottom of reservoirs stretching to depths available to geological studying and development and containing oil, gas and the components accompanying them;

objects of oil and gas production - the objects intended for geological studying, including trial development and hydrocarbon production. Treat objects of oil and gas production: oil and gas wells, gas pipelines loops, complex gas processing units, installations of preparation of gas, installation of preliminary preparation of gas, installation of complex preparation of oil, temporary trial installations of preparation of oil and gas, booster compressor station and other objects connected with operation of objects of oil and gas production;

arrangements of the field - complex of project, prospecting, construction and other works which need to be carried out for input of the field to industrial (trial) development or works on construction, capital repairs, reconstruction and modernization on the operating (equipped) fields;

transshipment complex - complex of constructions for acceptance, accumulating, temporary storage and overload from one mode of transport on other oil, oil products and the liquefied gas;

the underground storage warehouse of oil, gas or products of their conversion - the technological complex which is artificially created in natural or artificial reservoir of subsoil the store of oil or gas and constructions which are technologically combined with it which serve for periodic filling, storage and selection of oil, gas or products of their conversion for delivery to consumers;

deposit of oil and gas - single natural accumulation of oil and gas in subsoil;

commercial operation of the underground storage warehouse of oil and gas - pumping to the underground storage warehouse or extraction from it of oil or gas;

industrial mining of oil and gas - engineering procedure of extraction of the oil field, gas and the useful components accompanying them which is performed on the basis of the relevant project documents after completion of geological studying of the field, geological economic evaluation and approval in accordance with the established procedure of inventories of oil, gas and the accompanying components;

the oil and gas deposit - the natural accumulation of oil and gas consisting of one or several deposits which in the plan (horizontal projection) in parts or in full match among themselves;

prospecting works - geological film-making, search, geodetic works, works on geological studying of oil-and-gas content of subsoil, works on additional exploration and operational investigation of fields, including drilling, arrangement and operation of oil and gas wells, on new construction, maintenance, capital repairs and reconstruction of oil and gas wells and the objects of pipeline transport, factory buildings, access roads, power lines connected with their servicing and bonds;

mining of oil and gas - the engineering procedure of extraction of the oil field, gas and the useful components accompanying them consisting of two consecutive stages of trial mining and industrial mining;

special permission to use of the central executive body realizing state policy in the field of geological studying and rational use of subsoil and certifying the right of legal entity or physical person to which this document is issued, to use of oil-and-gas subsoil during time, within the subsoil plot, on the conditions provided in this document;

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