RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of March 14, 2007 No. 480

About approval of the Procedure for provision in 2007 of special permissions to use of natural resources

The Cabinet of Ministers of Ukraine decides:

Approve the Procedure for provision in 2007 for special permissions to use of natural resources which is applied.

Approved by the resolution of the Cabinet of Ministers of Ukraine of March 14, 2007 No. 480

Procedure for provision in 2007 of special permissions to use of natural resources

1. This Procedure regulates question of provision in 2007 of special permissions to use of natural resources (further - permission) 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 7 of this Procedure.

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

Permission to mining from several close located fields can be provided to one applicant if only their general development is economically profitable that is confirmed by the corresponding reasons for the State Commission on Mineral Reserves (further - GKZ).

Within one subsoil plot works on geological studying and production of minerals, different by types, on several permissions can be carried out.

4. Permission to mining is provided after carrying out GKZ of examination and approval of explored reserves of minerals.

In some cases permission to mining, previously reconnoitered fields can be provided in the presence of positive assessment of GKZ. At the same time special conditions of permission join the mandatory requirement concerning approval of GKZ of inventories of minerals of the reconnoitered subsoil plot within three years from the moment of its provision.

The subsoil user to whom permission to mining is provided has the right to carry out additional exploration (additional appraisal) of the field in borders of the site provided to it.

5. Permissions are provided on such types of use of natural resources:

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

mining;

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

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

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

satisfaction of other requirements.

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

Permission is provided on:

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 within 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 with the subsequent 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 within 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;

satisfaction of other requirements - 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.

In case of stay of complete property complexes on production and conversion of minerals in long-term lease effective period of permission cannot exceed lease term of these complexes.

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

1) mining if the applicant, having carried out geological studying of the subsoil plot for own means, performed mineral stock counting which is approved by GKZ, and is paid in accordance with the established procedure by collection for the carried-out exploration works during mining;

2) expansions of borders no more than for 50 percent of the land area of subsoil which is earlier provided in use for the purpose of its geological studying or placement of underground storage warehouses, and also mining due to expansion of borders of the site, but no more than for 50 percent of the inventories determined by earlier provided permission provided that the adjacent site is not provided in use;

3) geological studying of subsoil and mining of local value and peat.

Information on subsoil plots which are offered for provision of noted permissions Ministry for Protection of the Environment and Natural Resources not later than in 30 days prior to decision making about provision of permission places in the Uryadovy Kuryer newspaper and on the website in the Internet with indication of the name subsoil plots, its location, type of minerals, type of use of natural resources, starting price of sale of permission, cost of geological information and the address to which it is necessary to send statements to receipt of permission. In case when in Ministry for Protection of the Environment and Natural Resources in noted time statements together with the documents noted in appendix 1 on receipt of permission to use of the same subsoil plot from several applicants arrived the auction is held;

4) geological studying and production of underground drinking waters for centralized and not centralized water supply (except industrial flood); underground drinking and technical waters for the technical purposes;

5) geological studying of subsoil at the expense of means of the government budget (in case permissions are provided to subjects of housekeeping 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");

6) geological studying and production of natural medical resources the state treatment-and-prophylactic and sanatorium institutions which specialize in their use only for the medical purposes and which have medical infrastructure;

7) 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");

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