Comment to Article 4. Principles of the legislation of the Republic of Kazakhstan on subsoil and subsoil use of the Code Republic of Kazakhstan “On Subsoil and Subsoil Use”

The legal regulation of relations in the field of subsoil use is based on the principles of:

1) rational management of the state subsoil fund;

2) ensuring environmental safety in the use of mineral resources;

3) availability of information in the field of subsoil use;

4) payment for subsurface use;

5) integrity of subsurface users;

6) stability of subsurface use conditions.

_______________________________________________________________________________________

(Yereshev D.E.)

1. The principles of the legislation of the Republic of Kazakhstan on subsoil and subsurface use are sectoral principles that define the fundamental ideas and approaches laid down by the legislator in the relevant norms of the Subsoil Code. Although the principles of legislation on subsoil and subsurface use themselves do not directly contain legal norms in the meaning given in the Law "On Legal Acts", they contribute to the systematization and uniform understanding of the norms of the Code on Subsoil in law enforcement practice.

2. In the period from the country's independence to the present day, the principles of legislation in the field of subsoil use have been repeatedly revised. These changes reflected the corresponding stages of the country's formation, which was undergoing a transition from a planned economy to a market economy.

economic collapse to an unprecedented rise in commodity prices. Thus, the 1992 Code on Subsurface Resources and Processing of Mineral Raw Materials provided for the principles of subsurface use, among which the main principles were the principles of rational and integrated use of subsurface resources, safety of work related to the use of subsurface resources, etc. These were mainly utilitarian principles based on the task of ensuring the industrial development of the subsoil, and in many ways were a continuation of the Soviet system.

3. The Decree on the Subsoil of 1996 formulated new principles of legislation on the subsoil and subsoil use. Some of these principles were transferred to the Decree on Mineral Resources of 1996 from the Code on Mineral Resources and Processing of 1992. In particular, the principle of rational and integrated use of mineral resources. At the same time, principles such as transparency, the creation of favorable conditions for attracting investments in subsurface use operations and the replenishment of the mineral resource base have emerged. All this indicated that the legislation on subsurface use was reoriented towards the involvement of subsurface resources in the market economy, although the institutions that had been preserved since Soviet times (the principle of rational and integrated use of subsurface resources) continued to operate.

4. The Law of the Republic of Kazakhstan "On Subsoil and Subsurface Use" dated June 24, 2010, which replaced the Decree on the Subsoil of 1996, provided for only four principles: the principle of payment, rational, integrated and safe use of the subsoil, transparency and payment of subsurface use. It follows that the issues of attracting investments have receded into the background. An analysis of the provisions of the 2010 Law indicates increased government regulation, sometimes to the detriment of investors' interests.

5. When defining the principles of legislation on subsurface and subsurface use, the Code on Subsurface pursued the goals of balancing the interests of the state and investors, as well as the need to bring the legislation of the Republic of Kazakhstan in the field of subsurface use closer to the best international experience. For this reason, the principle of rational and integrated use of subsurface resources was eliminated and replaced by the principle of rational management of the state subsurface fund. New principles of integrity of subsurface users and stability of subsurface use conditions were included. The principle of transparency has been replaced by the principle of accessibility of information in the field of subsoil use.

On Subsoil and Subsoil Use Administrative Procedural and Procedural Code On the Health of the People and the Healthcare System Environmental Code Social Code Commentary Article Civil Procedure Code Civil Code Code of Criminal Procedure Criminal Code Regulatory Decision of the Supreme Court

  Kazakh Association of Organizations of the Oil and Gas and Energy Complex KAZENERGY

Nur Sultan 2022

The Kazenergy Association expresses its sincere gratitude for the support in preparing the commentary to the following companies: North Caspian Operating Company NV, NC KazMunayGas JSC, Mangistaumunaygas JSC, Karachaganak Petroleum Operating BV, White & Case Kazakhstan LLP, Haller Lomax LLP)", "Erlicon CG" LLP, "Signum Law Firm" LLP. © Kazenergy Association, 2022 © team of authors, 2022 © authors, 2022

Dear readers!

We offer you a scientific and practical commentary prepared by a group of Russian specialists with extensive practical experience in legislation on subsoil and subsoil use and who participated in the preparation of the Code on Subsoil and Subsoil Use.

Subsurface use is a very complex and specific area of public relations, the regulation of which has its own historical background and takes into account the technological specifics of the process of subsurface development, as well as environmental, commercial, legal and other features of exploration and development of deposits.

Kazakhstan's legislation on subsoil and subsurface use has passed through several stages in its development, and has always been based on a balance of interests between the state and subsurface users, transparency, striving for the maximum possible degree of protection of the rights and legitimate interests of investors, ensuring sustainable social, economic and environmental development of the country.

The Code "On Subsoil and Subsoil Use", adopted at the end of 2017, was developed taking into account many years of accumulated experience and law enforcement practice, as well as the results of extensive discussions with experts working in the industry.

It reflects specific, important measures on the part of the state to increase the investment attractiveness of exploration and further reduce administrative barriers.

Nevertheless, practice and legislation do not stand still, constantly evolving, taking into account new challenges facing both the subsurface use industry and the economy as a whole.

In this regard, this commentary is intended to serve as an aid for a wide range of interested persons – specialists working in the industry, in

understanding the meaning of the norms, their historical context, the interrelationship and mutual influence of the various provisions of the Code.

We also hope that studying the commentary will serve as an incentive for new generations of young domestic specialists to work scientifically and practically in this important industry, for the benefit of the development of our country, current and future generations of Kazakhstanis.

Sincerely, U. Karabalin, Deputy Chairman of the Kazenergy Association, Hero of Labor of Kazakhstan  

 Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases