THE CODE OF THE REPUBLIC OF ARMENIA ABOUT THE SUBSOIL

of December 2, 2002 No. ZR-456

It is accepted on November 6, 2002

This Code establishes the principles, procedure for use of natural resources in the territory of the Republic of Armenia, and also the relations connected with subsurface use.

Section I. General provisions

Article 1. Legislation of the Republic of Armenia on subsoil

The legislation of the Republic of Armenia on subsoil is based on the Constitution of the Republic of Armenia and consists of of this Code, the laws and other legal acts concerning this sphere. When using natural resources the relation, connected with the land, forest territories and airspace, plant and animal life, and also water basins, are regulated by the legislation of the Republic of Armenia.

Article 2. Basic concepts

In this Law the following basic concepts are used:

subsoil - part of the crust located on depth below soil layer, and in case of its absence - below the land surface and bottom of reservoirs and water currents;

use of natural resources - provision of subsoil for geological studying, business activity and other purposes;

the subsoil plot - the part of subsoil located under the certain territory differentiated on the land surface;

the part of subsoil which is real estate - the territory of subsoil with the borders fixed from all directions occupied with artificially created constructions, and also natural cavities (caves) which can be used in the different purposes;

mineral - firm, liquid, gaseous components of subsoil, including underground fresh, mineral, thermal waters, geothermal power, ground deposits of reservoirs and water currents, suitable for use, and also the warehoused waste formed owing to subsurface use;

popular mineral - the intrusive, volcanic and sedimentary breeds having wide circulation in crust, and from underground waters only ground waters;

mineral inventories - mineral deposits, amount, quantity, quality and territorial arrangement and which form are determined;

forecast resources of mineral - expected deposits of mineral which quantity, quality and territorial arrangement are estimated on the basis of direct and indirect data, and also general geological premises;

exploration works - complex of works on geological studying of subsoil which purpose is identification and assessment of forecast resources and inventories of minerals;

the field of mineral - the subsoil plot which is containing inventories and forecast resources of mineral and received geological economic evaluation;

show of mineral - the subsoil plot in which availability of mineral which amount, quality and industrial value are still not determined is revealed;

geological branch - the subsoil plot provided for geological studying;

stock balance of minerals - the form of the state accounting of the inventories of minerals revealed in subsoil for January 1 every year containing data on quantity, quality and degree of study of inventories of the reconnoitered fields, and also on their changes during the accounting period;

the inventory of fields and manifestations useful the iskopayemykhsistematizirovanny summary information on fields, manifestations and Items of mineralization of minerals including all revealed objects irrespective of their type, the sizes, degrees of study and industrial value;

mountain branch - the part of subsoil provided for mining and construction of underground constructions limited on the land surface and on depth;

sanitary conservation zones of underground waters - the territory differentiated around water intakes and sources in which economic activity for the purpose of barrier of underground waters from pollution and ensuring their protection is forbidden or limited;

operation of the field of mineral - production of the mineral placed in subsoil;

mineral extraction cost - the cost of unit of the extracted and processed mineral estimated at market prices of products and normative indicators of the applied technologies;

geological and other information on subsoil - data on structure, structure, the number of subsoil plots, availability in them of minerals and on other features of subsoil, and also this about technical and economic indicators of use of subsoil.

Article 3. Tasks of the Code of the Republic of Armenia about subsoil

Tasks of the Code of the Republic of Armenia about subsoil are:

1) regulation of the relations arising in connection with use and protection of subsoil;

2) ensuring rational, complex use and protection of subsoil for the purpose of economy requirements satisfaction in mineral raw materials, environmental protections from harmful effects, and also safety of conducting works when using natural resources;

3) protection of interests of the state and citizens, and also rights of subsoil users.

Article 4. Subsurface mineral right

Subsoil of the Republic of Armenia is exclusive property of the state which can be provided on right to use and privatizations are not subject.

Subsoil plots cannot be subject of purchase, sale, pledge or to be alienated in other form.

The mineral right can be alienated or pass from one user to another according to the procedure, established by the legislation of the Republic of Armenia.

Article 5. Public administration by use and protection of subsoil

Public administration by use and protection of subsoil is performed by the Government of the Republic of Armenia, state bodies authorized by the Government of the Republic of Armenia in the field (further - authorized body) according to the procedure, established by the legislation of the Republic of Armenia.

Article 6. Competence of the Government of the Republic of Armenia and state bodies in use and protection of subsoil

1. Enter competence of the Government of the Republic of Armenia in use and protection of subsoil:

1) ensuring implementation of policy in the field of subsurface use;

2) ownership of subsoil of the Republic of Armenia, establishment of procedure for the order and use of them;

3) differentiation of competence of authorized bodies in use and protection of subsoil;

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