Article 55. Financing the elimination of the consequences of subsurface use Code on Subsurface and Subsoil Use Republic of Kazakhstan
1. Liquidation is carried out at the expense of the subsurface user or a person who was directly a subsurface user before the termination of the relevant license or contract for subsurface use.
2. In the cases provided for by this Code, the subsurface user is obliged to provide security for the fulfillment of its liquidation obligations. The provision of such security by the subsurface user does not release from the fulfillment of the obligation to eliminate the consequences of subsurface use.
3. Ensuring the fulfillment of the obligation to eliminate the consequences of subsurface use is carried out in favor of the Republic of Kazakhstan.
In case of non-fulfillment (improper fulfillment) of the liquidation obligation within the time period established in accordance with this Code, the amount of the security provided shall be recovered in favor of the Republic of Kazakhstan by the state body that is a party to the contract and (or) issued a license for subsurface use.
If the amount of the relevant collateral proves insufficient to cover the costs of the relevant liquidation project, the State has the right to receive the missing amount from the property of the person who was obliged to eliminate the consequences of subsurface use.
4. The fulfillment by the subsurface user of the liquidation obligation may be secured by a guarantee, a pledge of a bank deposit and (or) insurance.
5. Collateral is provided separately for each subsurface area.
It is prohibited to conduct subsurface use operations requiring the elimination of their consequences without security provided in accordance with this Code.
6. The alienation by a subsurface user of the right of subsurface use (a share in the right of subsurface use) to a third party does not release him from his obligations to liquidate until the acquirer of the right of subsurface use (a share in the right of subsurface use) provides security in the amount determined in accordance with this Code.
7. If, for reasons beyond the control of the subsurface user, the security provided by him has ceased to comply with the requirements of this Code or has ceased, the subsurface user is obliged to replace such security within sixty calendar days. If such a replacement is not carried out by the subsurface user within the specified period, the latter is obliged to immediately suspend subsurface use operations. The resumption of subsurface use operations is allowed only after the restoration or replacement of collateral.
8. The security provided for the fulfillment of obligations to eliminate the consequences of subsurface use operations must comply with the requirements of this Code and other legislative acts of the Republic of Kazakhstan (appropriate security).
9. The procedure for submitting and accounting for the fulfillment of obligations by the state body to eliminate the consequences of subsurface use operations is determined by the competent authority.
The footnote. Article 55 as amended by the Laws of the Republic of Kazakhstan dated 01.01.2021 No. 401-VI (effective from 03/01/2021); dated 12/29/2022 No. 174-VII (effective after ten calendar days after the date of its first official publication).
Attention!
Law and Law Law Law draws your attention to the fact that this document is basic and does not always meet the requirements of a particular situation. Our lawyers are ready to assist you in legal advice, drawing up any legal document suitable for your situation.
For more information, please contact a Lawyer / Attorney by phone: +7 (708) 971-78-58; +7 (700) 978 5755, +7 (700) 978 5085.
Attorney at Law Almaty Lawyer Legal Services Legal Advice Civil Criminal Administrative Cases Disputes Protection Arbitration Law Firm Kazakhstan Law Office Court Cases
