ORDER OF THE MINISTER OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN

of May 22, 2023 No. 183

About modification of the order of the Minister of Energy of the Republic of Kazakhstan of April 26, 2018 No. 141 "About approval of Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium"

I ORDER:

1. Bring in the order of the Minister of Energy of the Republic of Kazakhstan of April 26, 2018 No. 141 "About approval of Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium" (it is registered in the Register of state registration of regulatory legal acts No. 17030) the following change:

Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium approved by the specified order to state in edition according to appendix to this order.

2. In spheres of hydrocarbons and subsurface use of the Department of Energy of the Republic of Kazakhstan in the procedure established by the legislation of the Republic of Kazakhstan to provide to department of the state control:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Department of Energy of the Republic of Kazakhstan;

3) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Department of Energy of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1) and 2) of this Item.

3. To impose control of execution of this order on the supervising vice-Minister of Energy of the Republic of Kazakhstan.

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

It is approved Ministry of Agriculture of the Republic of Kazakhstan

It is approved Ministry of the industry and infrastructure development of the Republic of Kazakhstan

It is approved Ministry of national economy of the Republic of Kazakhstan

 

Appendix

to the Order of the Minister of Energy of the Republic of Kazakhstan of May 22, 2023 No. 183

Approved by the Order of the Minister of Energy of the Republic of Kazakhstan of April 26, 2018 No. 141

Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium

Chapter 1. General provisions

1. These rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium (further - Rules) are developed in compliance with Item 5 of Article 122 and Item 5 of article 174 of the Code of the Republic of Kazakhstan "About subsoil and subsurface use" (further - the Code) and determine procedure for the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium.

2. In these rules the following basic concepts are used:

1) damage - the loss suffered by the state, determined proceeding from amount of the actual losses of the hydrocarbons or uranium exceeding their normalized losses;

2) the normalized losses of hydrocarbons or uranium - the losses of hydrocarbons or uranium which are technologically connected with the accepted methods and systems of carrying out transactions on subsurface use on hydrocarbons or production of uranium which level is proved by technical and economic calculations in project documents for carrying out transactions on subsurface use and (or) the losses in the form of amounts of combustion of sour gas specified in permission to combustion of sour gas in torches;

3) the actual losses - the losses determined at the time of calculation of damage.

3. These rules extend to all subsoil users, including to operators under the contract for subsurface use, trustees (further - the subsoil user) on hydrocarbons and (or) production of uranium, irrespective of patterns of ownership.

4. Damage assessment, caused owing to violation of requirements for rational and complex use of subsoil, is performed upon detection, and also in the presence of information on damage from subsoil users and (or) state bodies:

in case of exploration and production of hydrocarbons - authorized body in the field of hydrocarbons;

in case of uranium production - authorized body in the field of uranium production.

5. The disputes arising in connection with damage assessment are permitted according to Item 2 of Article 9 of the Civil code of the Republic of Kazakhstan and Article 9 of the Administrative procedural Procedure Code of the Republic of Kazakhstan.

Chapter 2. Procedure for the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium

6. The extent of the damage caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium is determined proceeding from amount of the actual losses of the hydrocarbons or uranium exceeding their normalized losses and determined proceeding from average cost according to official quotations of the prices for the accounting period.

7. The extent of the damage caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium is determined according to examples of damage assessment for over the normalized losses, according to appendix to these rules.

8. Excess of the actual losses of hydrocarbons or uranium over the normalized losses, (further - over the normalized losses), proceeds from amounts:

losses of balance sheet inventories of hydrocarbons over the established normalized losses by each part of the deposit or uranium over the established normalized losses on the field fulfilled by one system of development with rather homogeneous mining-and-geological conditions in which balance sheet inventories of hydrocarbons or uranium are authentically counted and primary accounting of completeness of their extraction from subsoil, and also any unreasonable losses is possible;

losses of the balance sheet inventories of uranium which resulted from the violation of the project of trial production, the project of mining or the project document approved before enforcement of the Code providing economically profitable mining of uranium taking into account rational use of the subsoil and accidents caused by these violations;

the inventories of hydrocarbons or uranium left in subsoil without having reached coefficient of extraction, untimely write-off of inventories, premature repayment of inventories of hydrocarbons;

losses of balance sheet inventories of the hydrocarbons which arose because of flood, ignition in subsoil or the extracted hydrocarbons owing to violation of requirements for their development (production);

losses of balance sheet inventories of hydrocarbons which profitable working off becomes impossible because of production on easily accessible sites of the field;

losses of hydrocarbons in case of production, collection, transportation and preparation on crafts over the normalized losses;

the losses of recoverable reserves of hydrocarbons or uranium approved by the State Commission on Mineral Reserves of the Republic of Kazakhstan, owing to non-compliance with the technological mode of development of fields provided by the basic project document, the analysis of development or the project document approved before enforcement of the Code, and also interbedded overflow of hydrocarbons in the overlying horizons through behind-the-casing and intercolumned space owing to violation of requirements for rational use of subsoil when carrying out transactions on subsurface use;

losses of sour gas, gas condensate because of non-compliance with the basic project document, the analysis of development or the project document approved before enforcement of the Code, their extraction and utilization;

the sour gas burned in torches without the permission and (or) without observance of conditions of permissions of authorized body in the field of hydrocarbons, except as specified threats or emergence of emergencies, threats of life to personnel or health of the population and the environment;

the burned sour gas over permitted, authorized body in the field of hydrocarbons, for burning of amounts;

losses of uranium and the passing components containing in them in case of primary conversion of uranium, intermediate products (semifinished products), tails of enrichment, slimes, the slags exceeding the normalized losses in the basic project document, the analysis of development or the project document approved before enforcement of the Code, connected with changes and fluctuations of quality of the processed raw materials in comparison with project indicators and violations of technological discipline of conversion, determined in case of complete working off of the field;

losses of crude oil (condensate) in case of investigation, including in case of test operation on the subsoil plot over the normalized losses.

9. Over the normalized bedded losses of oil, condensate and gas, including passing (dissolved), are determined by variations from extraction coefficient which is approved in the basic project document, the analysis of development or the project document approved before enforcement of the Code.

10. Over the normalized losses in case of combustion of sour gas are determined by component composition of the gas consisting on the state balance of minerals, on the basis of content of the components accepted in case of stock counting, and (or) specified in the basic project document, the analysis of development or the project document approved before enforcement of the Code.

Content of components is considered from the last approved project documents specified in part one of this Item.

11. In the absence of individual metering devices, calculation of project losses is carried out on content of dissolved gas in the extracted mineral, minerals of the Republic of Kazakhstan which are registered on the State stock balance, and (or) specified in the basic project document, the analysis of development or the project document approved before enforcement of the Code.

Content of components is considered from the last approved project documents specified in part one of this Item.

12. Quantitative value over the normalized losses of the hydrocarbons or uranium allowed in the course of primary conversion (preparation) is determined by difference between the size of extraction established by technology for the corresponding type (grade) of hydrocarbons or uranium and the extraction which is actually reached it in commodity product.

Appendix

to Rules of the damage assessment caused owing to violation of requirements for rational and complex use of subsoil in case of exploration and production of hydrocarbons and production of uranium

Examples of damage assessment for over the normalized losses

Example 1.

The subsoil user for the accounting period extracted 2658000 tons of oil.

For this period the actual losses of oil constituted 4442 tons of oil, including the approved normalized losses of 1081 tons of oil.

Average price in case of oil sale by the subsoil user (official quotations of the prices) in the accounting period made 50, 49 US dollars,

(4442 - 1081) x 50,49 = 169696, 89 US dollars.

169696,89 x on the official rate of national currency of the Republic of Kazakhstan to foreign currency established by National Bank of the Republic of Kazakhstan on the date of detection of damage = the amount of damage.

Example 2.

By the subsoil user in case of exploration and production for the accounting period it is burned sour gas in number of 300 million m3. At the same time gas has industrial content of the components which are registered on the State stock balance of minerals and (or) content of components specified in the basic project document, the analysis of development or the project document approved before enforcement of the Code of the Republic of Kazakhstan "About subsoil and subsurface use". Based on values of potential contents, it agrees the data approved by State commission on inventories of the Republic of Kazakhstan and (or) specified in the basic project document, the analysis of development or the project document approved before enforcement of the Code of the Republic of Kazakhstan "About subsoil and subsurface use", we determine quantity of components, including dry gas (methane). Losses of components - ethane, propane and (or) butane, in case of potential total content of 500 kg on 1000 m3 of gas constitute 150000 tons. Losses of dry gas and (or) methane in case of content of 50% constitute 150 million m3.

Average cost of official quotations of the prices on dry gas (methane) in the accounting period made 80 US dollars for 1000 m 3, and on components - ethane, propane and (or) butane, 350 US dollars on each component, for 1 ton.

Amount of damage:

for dry gas (methane): 150000000 x 80:1000 = 12000000 US dollars;

for components - ethane, propane and (or) butane: 150000 x 350 = 52500000 US dollars;

in total 64500000 US dollars.

64500000 x on the official rate of national currency of the Republic of Kazakhstan to foreign currency established by National Bank of the Republic of Kazakhstan on the date of detection of damage = the amount of damage.

Example 3.

The subsoil user develops the uranium field. In case of complete working off of the field realized 61224 tons of uranium:

the actual losses of uranium constituted - 2024 tons

in case of the normalized losses - 1215 tons

Average price in case of uranium realization by the subsoil user (official quotations of the prices) during the accounting period made - 228, 03 US dollars,

(2024 - 1215) x 228,03 = 184476, 3 US dollars.

184476,3 x on the official rate of national currency of the Republic of Kazakhstan to foreign currency established by National Bank of the Republic of Kazakhstan on the date of detection of damage = the amount of damage.

 

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