RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of February 20, 2006 No. 168

About approval of the Procedure for provision in 2006 of special permissions to use of natural resources

The Cabinet of Ministers of Ukraine decides:

Approve the Procedure for provision in 2006 for special permissions to use of natural resources which is applied.

Approved by the resolution of the Cabinet of Ministers of Ukraine of February 20, 2006, No. 168

Procedure for provision in 2006 of special permissions to use of natural resources

1. This Procedure regulates questions of provision in 2006 of special permissions to use of natural resources (further permissions) in borders of the territory of Ukraine, its continental shelf and exclusive (sea) economic zone.

Action of the Procedure extends to all types of use of natural resources.

2. Permissions are provided to Ministry for Protection of the Environment and Natural Resources to winners of auctions for their sale, and also subsoil users in the cases provided in Item 8 of this Procedure.

3. On each type of use of natural resources in borders of the specific site separate permission is provided.

Provision to one applicant of permission to industrial development of several nearby located mineral deposits is allowed if only general development of these fields by one subsoil user is economically profitable that is confirmed by the corresponding reasons for the State Commission on Mineral Reserves (further - GKZ).

In borders of one subsoil plot during geological studying of minerals different by the form works on several permissions can be carried out.

4. Permission to industrial development of mineral deposits is provided after conducting examination and positive assessment of explored reserves of GKZ minerals.

In some cases permission to development of previously explored reserves of mineral deposits can be provided by results of their positive assessment to GKZ.

The subsoil user who got permission to use of natural resources for the purpose of mining of minerals has the right to carry out additional exploration (additional appraisal) of the field in borders of the site provided to it without receipt of permission to use of the subsoil plot for the purpose of its geological studying.

5. In case of change of the subsoil user new permission, except cases, stipulated in Item 17 it About is provided.

6. Permissions are provided on the following types of use of natural resources:

geological studying, including trial development of mineral deposits of nation-wide value;

mining (industrial development of fields);

geological studying of oil-and-gas subsoil, including trial development of fields of hydrocarbons with further oil and gas extraction (industrial development of fields);

construction and operation of the underground constructions which are not connected with mining, including constructions for underground oil storage, gas and other substances and materials, burial of hazardous substances and production wastes, dumping of the waste and accompanying waters;

creation of the geological territories and objects which have important scientific, cultural, recreational and improving value;

other types of use of natural resources.

7. Effective period of permission is estimated since day of its registration if another is not provided in it.

Permission is provided for such term:

geological studying of subsoil, including trial development of fields, - no more than for five years, geological studying of oil-and-gas subsoil, including trial development of oil and gas deposits in borders of the continental shelf and exclusive (sea) economic zone of Ukraine, - for 10 years;

mining (industrial development of fields) - no more than for 20 years, oil and gas extraction in borders of the continental shelf and exclusive (sea) economic zone of Ukraine - no more than for 30 years;

geological studying of oil-and-gas subsoil, including trial development of fields of hydrocarbons with further oil and gas extraction (industrial development of fields), - on effective period of separate permissions to geological studying of oil-and-gas subsoil and on oil and gas extraction (industrial development of fields), but no more than for 20 years on the land and no more than for 30 years on the continental shelf and in borders of exclusive (sea) economic zone of Ukraine;

construction and operation of the underground constructions which are not connected with mining - no more than for 20 years;

construction and operation of underground storage warehouses of oil or lawn more than for 50 years;

other types of use of natural resources - no more than for 20 years.

Permissions to creation of the geological territories and objects which have important scientific, cultural, recreational and improving value are provided without restriction of effective period.

8. Without holding the auction permission to use of the subsoil plot is provided in case:

mining if the subsoil user, having carried out geological studying of the subsoil plot for own means, executed mineral stock counting that is approved by GKZ, intends to develop the field, and in the presence of costs of the state for geological studying of this field compensated them before receipt of permission according to the procedure, established by the Cabinet of Ministers of Ukraine;

natural gas productions which will be implemented on the rates regulated by the state;

expansions of borders of the subsoil plot which is earlier provided in use for the purpose of its geological studying if the revealed field or the created underground storage warehouse for storage of hydrocarbons goes beyond its limits, and also expansion no more than for 50 percent of the land area of subsoil which is earlier provided in use for the purpose of coal production in the operating mines provided that the adjacent subsoil plot is not provided in use;

geological studying of subsoil and mining of local value and peat, and also underground drinking waters for centralized and not centralized water supply and the technical purposes (except industrial flood);

geological studying of subsoil for means of the government budget (if permissions are provided to subjects of managing based on the signed agreement on performance of works according to the Law of Ukraine "About purchase of goods, works and services for public funds");

geological studying and production of natural medical resources the state medical institutions which specialize in their use only for the medical purposes and which have medical infrastructure;

agreement performances about distribution of products (if the subsoil plot is provided in use according to the procedure, determined by the Law of Ukraine "About agreements on distribution of products");

mineral production if according to the legislation of Ukraine the owner of complete property complex which is constructed for the purpose of production and conversion of mineral of the subsoil plot on which permission is provided changed, or such property complex is its property, and such owner meets the requirements to the subsoil users established by the legislation and showed willingness to get permission to mineral production;

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