Article 115. Allocation of a subsoil plot Code on Subsoil and Subsoil Use Republic of Kazakhstan  

 1. The allocation of a subsurface area under a contract for the exploration and production of hydrocarbons is carried out at the request of the subsurface user in the following cases::

     1) allocation of a part of an exploration site – if the proposed contours of the discovered deposit (set of deposits) are located within each of the parts, established in the addendum to the exploration project approved by the subsurface user and having received positive conclusions provided for by this Code and other laws of the Republic of Kazakhstan, providing for work on the assessment of such a deposit (set of deposits);

     2) allocation of an exploration site – if two or more exploration sites are fixed in the exploration and production contract, within each of which the estimated contours of the discovered deposit (set of deposits) are located, established in the addendum to the exploration project approved by the subsurface user and having received positive conclusions provided for by this Code and other laws of the Republic of Kazakhstan, providing for the work of according to the assessment of such a deposit (a set of deposits);

     3) allocation of a production site – if at least one exploration site and at least one production site are fixed in the exploration and production contract.;

     4) allocation of a mining site – if two or more mining sites are fixed in the exploration and production contract;

     5) allocation of a mining site in the cases provided for in paragraphs 18-2 and 18-3 of Article 119 of this Code.

     6) allocation of a mining area related to depleted deposits in accordance with Article 153-1 of this Code.

     2. The allocation of a subsurface area that is not related to complex projects is carried out subject to the following conditions::

     1) the exploration and production contract under which a subsurface area is allocated was concluded after the entry into force of this Code, including the contract concluded before the entry into force of this Code and transferred during the exploration period to the terms of a standard contract for the exploration and production of hydrocarbons approved by the competent authority;

     2) there is a prior consent of the pledgee to the allocation if the right of subsurface use is encumbered by a pledge;

     3) there are no violations of obligations under the subsoil use contract that have not been eliminated by the subsurface user, as indicated in the notification of the competent authority.

     For the purposes of subparagraph 4) of paragraph 1 of this article, an additional condition for allocating a mining site is the obligation to alienate the right of subsurface use for the allocated site to a person who is not affiliated with the subsurface user.

     The requirement of part two of this paragraph does not apply to the allocation of subsurface areas in the cases provided for in paragraphs 18-2 and 18-3 of Article 119 of this Code.

The requirements of subitems 1) of parts one and two of this paragraph do not apply to the allocation of a subsurface area(s) within a deposit(s) classified as depleted in accordance with Article 153-1 of this Code.

     3. The allocation of a subsurface area is formalized by making changes to the subsurface use contract under which the site is allocated, and concluding a separate subsurface use contract for the allocated subsurface area.

     4. The exploration period, the preparatory period or the production period and other terms of the subsurface use contract for the allocated subsurface area must comply with the terms of the subsurface use contract under which the site was allocated.

     5. The application for the allocation of a subsurface area must contain:

     1) last name, first name, patronymic (if it is indicated in the identity document), the name of the subsurface user;

     2) the number and date of registration of the subsoil use contract;

     3) an indication of the subsurface area (part of it), which is supposed to be allocated to a separate subsurface use contract.

     6. The application must additionally be accompanied by:

     1) an addendum to the contract signed by the subsurface user, containing an appendix to the contract, establishing, in accordance with Article 110 of this Code, a reduced main subsurface area, as well as a work program reduced by the types and volumes of work related to the allocated subsurface area in the case of allocation of a part of the exploration area;

     2) a contract for exploration and production or production of hydrocarbons signed by the applicant, developed in accordance with a standard contract for exploration and production or production of hydrocarbons approved by the competent authority, and complying with the requirements of paragraph 4 of this article, as well as a work program containing the types and volumes of work related to the allocated subsurface area in the case of allocation of part of the site intelligence.

     At the same time, the types and volumes of work provided for in the program of work of the exploration and production contract prior to the allocation of a part of the exploration site may not be less than the types and volumes of work provided for in the addendum to the exploration and production contract for the main subsurface area and the exploration and production contract concluded for the allocated subsurface area.

     7. The application is subject to consideration within twenty working days from the date of its receipt by the competent authority. Based on the results of consideration of the application, the competent authority decides on the allocation of a subsurface area or refuses to allocate a site.

     8. The competent authority refuses to allocate a subsurface area in the following cases::

     1) if the application does not comply with the requirements established by this Code;

     2) non-compliance with the conditions set forth in this article.

     The refusal of the competent authority to reduce the subsurface area does not deprive the subsurface user of the right to submit a second application.

     9. The competent authority, within ten working days from the date of making a decision on the allocation of a subsurface area, concludes with the applicant an addendum to the subsurface use contract, a separate subsurface use contract for the allocated subsurface area and sends the applicant its signed copies.

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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