COMMENTARY ON ARTICLE 1. THE LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ON SUBSOIL AND SUBSOIL USE IS SUBJECT TO THE CODE OF THE REPUBLIC OF KAZAKHSTAN "ON SUBSOIL AND SUBSOIL USE".

Home / RLA / COMMENTARY ON ARTICLE 1. THE LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ON SUBSOIL AND SUBSOIL USE IS SUBJECT TO THE CODE OF THE REPUBLIC OF KAZAKHSTAN "ON SUBSOIL AND SUBSOIL USE".

1.the legislation of the Republic of Kazakhstan On Subsoil and subsoil use is based on the Constitution of the Republic of Kazakhstan and consists of this code and other regulatory legal acts of the Republic of Kazakhstan.

2.if an international treaty ratified by the Republic of Kazakhstan establishes rules other than the provisions contained in this code, the provisions of the international treaty shall apply.

3.in cases of conflict between this code and other laws of the Republic of Kazakhstan containing norms regulating relations in the field of subsoil use, the provisions of this Code shall apply.

4.the civil legislation of the Republic of Kazakhstan applies to relations in the field of subsoil use in cases not regulated by the norms of this code.

_______________________________________________________________________________________

(Elubaev Zh. S.)

1. The commented norm differs significantly in its essence and content from the norms contained in previous legislative acts of the Republic of Kazakhstan, namely: from Article 2 of the code of the Republic of Kazakhstan "On Subsoil and processing of mineral raw materials" dated May 30, 1992; from Article 4 of the law of the Republic of Kazakhstan "On Subsoil and Subsoil Use" dated January 27, 1996 No. 2828; from Article 2 of the law of the Republic of Kazakhstan "On Subsoil and Subsoil Use" dated June 24, 2010 No. 291, therefore new.

2.the structure of this norm is complex and in a semantic sense similar to similar norms contained in other regulatory legal acts of the Republic of Kazakhstan adopted during the period of the new history of the Republic of Kazakhstan (for example, the Mk of the Republic of Kazakhstan, the farm of the Republic of Kazakhstan, the EC of the Republic of Kazakhstan, etc.).

3.this article defines a system of normative legal acts regulating relations in the field of subsoil use, the framework of which is defined by Article 2 of the subsoil code. It should be noted that the correct interpretation of the legislative norm allows a full and in-depth study of its meaning, and a logical analysis of the norm of the legislative act leads to an assessment of the quality of existing legal acts and, if necessary, to reform the legislation. Also, the provisions of the commented norm, of course, acquire their significance in the law enforcement process, in particular in judicial practice, since the formation of a single legal and fair law enforcement practice contributes to ensuring a balance between all subjects of legal relations in the field of Subsoil Use.

4.The commented norm contains the term "other regulatory legal acts", which in the part not regulated by the code on subsoil should be understood as normative legal acts applicable to relations on subsoil use (for example, the norms of the Civil Code of the Republic of Kazakhstan on costs, types of forfeits, the norms of the NC RK on the amount of royalties and other mandatory payments, the norms of the EC RK on subsoil use). and so on. B.), as well as regulatory legal acts on a hierarchy below laws, adopted for the development of provisions of the subsoil code and containing mechanisms for regulating legal relations in the field of subsoil use (for example, government and departmental regulatory legal acts).

5.the current legislation on subsoil is based on the constitutional provisions of the Constitution of the Republic of Kazakhstan on the highest legal force and direct application in the territory of the country (paragraph 2 of Article 4) and subsoil is in state ownership (paragraph 3 of Article 6). At the same time, public and private property are recognized and equally protected in the Republic of Kazakhstan (Item 1 of Article 6).

It should be noted that according to the constitutional provision (PP. 2, 4, 9 paragraph 3 of Article 61) only the Parliament of the Republic of Kazakhstan has the right to make laws regulating important public relations, to establish fundamental principles

and other material rights; taxation, establishment of fees and other mandatory payments; Environmental Protection.

The above constitutional provisions provide guarantees of state ownership of subsoil and the implementation of activities in the field of subsoil use in strict accordance with the requirements of regulatory legal acts.

6.at the same time, the process of realization of the right of state ownership of subsoil includes various elements and stages aimed not only at the study and development of subsoil, but also at organizing the management process preceding and accompanying the process of Subsoil Use. The right of state ownership of subsoil as a set of organizational and legal forms and mechanisms for the implementation by the state of the rights of the subsoil owner is aimed at ensuring the reproduction of the mineral resource base, rational use and protection of subsoil in the interests of current and future generations of citizens of the Republic of Kazakhstan.

At the same time, it should be borne in mind that in an objective sense, State Property Law is a set of legal norms that regulate the procedure for owning, using and disposing of state property. In a subjective sense, the right of state property is a legally secured opportunity for a state or administrative-territorial unit to indirectly carry out the possession, use and disposal of state property through authorized persons. Relations related to state property are regulated by the norms of a number of branches of legislation related to subsoil, these are the norms of the commented code on subsoil, the Mk of the Republic of Kazakhstan, the EC of the Republic of Kazakhstan, the NC of the Republic of Kazakhstan and other regulatory legal acts.

7.at the present stage of development of Subsoil Use relations in the implementation of the right of state ownership of subsoil, it is legitimate to raise the question of harmonization of the principles of impermanence and dispositiveness, taking into account the interests of both the state and the subsoil user.

8.the high legal force of the Constitution of the Republic of Kazakhstan means that constitutional, as well as ordinary laws and other normative legal acts must not contradict the Constitution, normative legal acts or their certain norms and provisions that contradict the Constitution are considered to be of no legal force and are subject to cancellation. The direct application of the norms of the Constitution means that state bodies and other subjects of legal relations in the field of Subsoil Use must apply them

directly to public relations regulated by them, for example, to Relations of ownership of subsoil.

9.the direct action of the Constitution is the combination of the system of legislation with the principles, norms of the Constitution, their meaning, official interpretation. At the same time, there is a unification, unification of the norms of the Constitution and all current legislation before the stage of its implementation. This process is influenced by many domestic and international factors – the state of economic, political, legal and political culture, the level of development of legal and political consciousness, established customs and traditions.

10.in accordance with the constitutional provision on the Supreme legal force of the Constitution, its direct application and application throughout the territory of Kazakhstan, courts must apply the Constitution of the Republic as an act of direct application in all necessary cases when considering cases related to disputes in the field of Subsoil Use.

11.international treaties ratified by the Republic of Kazakhstan take precedence over its laws and apply directly, except in cases where an international treaty requires the issuance of a law for its application (paragraph 3 of Article 4 of the Constitution of the Republic of Kazakhstan). At the same time, international treaties that have significant state significance and affect the significant interests of the state, for example, issues of state-owned subsoil management, are subject to ratification.

12.for example, one of the most important international acts is the Energy Charter Treaty, signed on December 17, 1994 and entered into force on April 16, 1998, as well as the "protocol to the Energy Charter on energy efficiency issues and related environmental aspects", ratified by the decree of the president of the Republic of Kazakhstan dated October 18, 1995 No. 2537 (hereinafter referred to as the Energy Charter Treaty).

It should be noted that this international legal act was ratified by the decree of the president of the Republic of Kazakhstan on the basis of the powers granted by the Parliament during the parliamentary crisis of 1995-1996, in connection with which the issue of ratification of this international legal act and its legal status remains controversial. Nevertheless, the Energy Charter Treaty was ratified in special stages

The powers of the president of the Republic of Kazakhstan, its provisions should be mandatory for the Republic of Kazakhstan when regulating relations in the field of subsoil management and subsoil use.

13.the main objectives of the treaty to the Energy Charter are reduced to the creation of conditions for the promotion and promotion of investments in energy and energy trade, ensuring free access to energy markets, resolving disputes in this sector in international arbitration, and reducing environmental risks. This treaty regulates relations in the field of investment protection to a large extent, although it also affects the sphere of Subsoil Use. This conclusion is based on the interpretation of the term "economic activity in the energy sector", that is, "economic activity related to the exploration, production, processing, production, storage, onshore transportation, transfer, distribution, sale, sale or sale of energy materials and products" (paragraph 5 of Article 1 of the contract). In turn, the Treaty on" energy materials and products " refers to the Energy Charter almost all types of minerals and their products that are energy sources, including: uranium ores, all types of coal, peat, oil, gas (EU annex to the treaty).

14. The Energy Charter Treaty has been ratified by the Republic of Kazakhstan, so these provisions take precedence over national legislation and are applied directly. At the same time, if an international treaty ratified by the Republic of Kazakhstan establishes rules other than those contained in the Subsoil Code, the rules of the international treaty shall apply.

15. Another international act signed by the Republic of Kazakhstan, the International Energy Charter (IECH), should also be noted. The Signatories recognized the importance of energy security of energy-producing, transit and energy-consuming countries, as well as the importance of access to modern energy services, which should be based on environmentally sound, socially acceptable and economically sound policies, as well as on mutual responsibility and mutual benefit.

16. Meanwhile, the above-mentioned international legal acts are mainly aimed at regulating relations between States in general issues of subsurface use while preserving national sovereignty over the subsoil and minerals. These international legal acts do not contain

the rules of direct action governing relations regarding the granting, modification and termination of the right of subsurface use.

17. Depending on the legal force of the normative legal acts, their strict hierarchy is established. Thus, according to the Law of the Republic of Kazakhstan "On Legal Acts" dated April 6, 2016 No. 480, each of the regulatory legal acts of the lower level should not contradict the regulatory legal acts of higher levels. If there are contradictions in the norms of normative legal acts of different levels, the norms of a higher-level act apply. The norms of laws in cases of their discrepancy with the norms of the codes of the Republic of Kazakhstan may be applied only after the relevant amendments and (or) additions have been made to the codes. If there are contradictions in the norms of normative legal acts of the same level, the norms of the act, which were put into effect later, apply. These legislative provisions play an important role in regulating legal relations in the field of subsoil use. Neglect of them leads to significant violations of the rights and legitimate interests of subjects of legal relations in the field of subsoil use. The following example from judicial practice can serve as evidence of this.

18. In 2001-2008, there was a legal dispute between the authorized bodies of the Republic of Kazakhstan and one of the companies (a subsurface user) regarding the interpretation of the concept and legal status of sulfur, which is a mineral in demand by both domestic and global markets. By its act, the Government of the Republic of Kazakhstan classified sulfur as industrial waste due to its open placement and storage for more than three months a year.

1) Meanwhile, this provision of the government act contradicted the legislative interpretation of the concept of "production and consumption waste" contained in the Law of the Republic of Kazakhstan "On Environmental Protection" in force at that time, which was a higher-level regulatory legal act.

2) In addition, this governmental act contradicted the provisions contained in the international act. Thus, according to the "International Convention on the Harmonized Commodity Description and Coding System", to which the Republic of Kazakhstan joined in accordance with the Law of the Republic of Kazakhstan No. 525 dated February 3, 2004, all types of sulfur were classified as goods (it should also be understood as products) and it was assigned a special international "heading - 25.03" and special international "product code – 2503.00". Thus, given the priority of the provisions of this International Convention over national legislation, the Republic of Kazakhstan,

having joined this Convention by a special law, it could not unilaterally change the "commodity position" of sulfur, moreover, under no circumstances, classify it as production and consumption waste.

3) Moreover, the technology of sulfur placement and storage carried out by the subsurface user met the requirements of the Interstate Standard (GOST 127.1-93), adopted on October 21, 1993 by the Interstate Council of the CIS Countries for Standardization, Metrology and Certification.

4) Based on the above government act, from 2001 to 2008, the subsurface user made payments for the placement and storage of sulfur. The total amount of these payments over the years amounted to 342 million US dollars, which were returned to the subsurface user based on the decision of the Supreme Court of the Republic of Kazakhstan and the concluded Agreement between the Republic of Kazakhstan and the subsurface user on dispute settlement.

19. In cases where relations in the field of subsurface use are not regulated by the norms of the Subsoil Code, the norms of civil legislation may be applied, this important provision is fixed in the commented article.

20. The regulation on the applicability of the norms of civil legislation to the regulation of relations in the field of subsurface use (paragraph 4 of Article 1 of the Subsoil Code) is based on specific norms of the Civil Code of the Republic of Kazakhstan. For example, paragraph 1 of Article 1 of the Civil Code of the Republic of Kazakhstan establishes that civil legislation regulates commodity-monetary and other property relations based on equality of participants. The legislative provision stipulated in paragraph 3 of Article 1 of the Civil Code of the Republic of Kazakhstan stipulates that relations on the use of natural resources may be regulated by civil legislation if they are not regulated by legislation on the use of natural resources. Thus, paragraph 4 of Article 1 of the Subsoil Code and paragraphs 1 and 3 of Article 1 of the Civil Code correspond to each other and legislate the possibility of regulating certain relations in the field of subsoil use by civil legislation.

21. Under certain circumstances, civil law regulation could be subject to, in particular: relations related to the ownership of the subsoil and minerals in their natural occurrence; relations related to the participation of the state itself in contracts for subsurface use, since the Republic of Kazakhstan may act as

an equal party in contractual and legal relations without any exclusive privileges for it; relations related to the priority right of the state in the field of subsurface use; relations related to the alienation/acquisition of shares (stakes) of legal entities that are subsurface users; relations related to the civil liability of subjects of legal relations in the field of subsurface use, etc. However, this does not directly follow from the norms of the commented Code on the Subsoil, therefore it is a disadvantage and a subject for scientific discussion.

22. When forming law enforcement practice in the field of subsurface use, it is necessary to ensure a restrained approach to the subsidiary application of the norms of the Subsoil Code and civil legislation. It should also be borne in mind that in accordance with the theory of law, the logical and systematic interpretation of legislative provisions, the following conditions for the subsidiary application of legal norms can be distinguished:

1) the absence of a direct prohibition of the law on the subsidiary application of legal norms;

2) the actual relations that have developed need legal regulation and should be covered by law (legislation);

3) the absence of a norm of a branch of law regulating public relations, which is located in a related branch of legislation and, unlike the analogy of the law, there is no gap here.

At the same time, the norms of civil legislation apply to relations in the field of subsurface use only in cases where they are not regulated by the norms of the Subsoil Code.

On Subsoil and Subsoil Use Administrative Procedural Procedure Code On the Health of the People and the Healthcare System Environmental Code Social Code Comments 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

The legislative act, called the Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use", regulating relations in the field of subsoil use, was adopted for the first time in the legislative practice of the Republic of Kazakhstan with the division of its norms into General and Special parts. There was no such legal act on subsurface use in terms of structure and content either during the existence of the USSR or during the modern history of Kazakhstan.

The structure of the Subsoil Code is based on a pandect system, that is, it is divided into General and Special parts similar to the current codified laws of the Republic of Kazakhstan, such as the Civil Code of the Republic of Kazakhstan, the NK RK, the EC RK, etc. The general part of the Subsurface Code regulates general issues in the field of subsurface use (principles of legislation, the concept of subsurface use law, subjects of subsurface use law, grounds for the emergence and termination of subsurface use law, public administration in the field of subsurface use, etc.), allowing them to be distinguished from special regulation in a Special part applicable only to certain types of subsurface use operations and groups mineral resources.

The development of the Subsoil Code was preceded by extensive work to analyze the law enforcement practice that had developed by 2014, the level of development of public relations in the field of subsoil use, existing problems and prospects for the development of the oil and gas and mining sectors of the economy, gaps and shortcomings in the regulation of legislation in force at that time. In addition, extensive research has been conducted on the international practice of regulating the sphere of subsurface use in advanced countries in terms of the development of oil and gas and mining industries, such as Australia, Norway, Canada, Chile, the USA, South Africa, etc. As a result of the analysis and research, we have prepared:

1) Report by Professor Peter Cameron, Director of the Center for Legislation and Policy in the Field of Energy, Oil and Minerals at the University of Dundee, completed in 2014 in two parts by order of the Kazenergy Association;

2) Report of the Oxford University Office of Policy on a comparative study of the taxation regime of subsurface use for the development of minerals in the (mining industry) Kazakhstan, completed in 2014 by order of the World Bank;

3) SRK Consulting Ltd. report on comparative study of financial mechanisms for environmental and social sustainability after the liquidation of subsurface use facilities in the Republic of Kazakhstan, commissioned by the World Bank in 2016;

4) the report of the SOFRECO consulting company "Kazakhstan legislation on the granting of mineral exploration rights", completed in 2013 in two parts by order of the Ministry of Industry and New Technologies of the Republic of Kazakhstan;

5) Memorandum of the CSA Global consulting company "Comparison of reporting systems on resources and reserves of solid minerals and description of possible changes in the taxation system of the mining industry", executed in 2016 at the request of the Ministry of Investment and Development of the Republic of Kazakhstan.

The Subsoil Code was developed on the basis of the Concept of the draft Subsoil Code prepared pursuant to the instruction of the President of the Republic of Kazakhstan No. 1399-4 pub dated September 25, 2013.

The ideological basis and the political and legal platform of the Code on Mineral Resources were:

1) Address of the President of the Republic of Kazakhstan to the People of Kazakhstan dated January 17, 2014 – "Kazakhstan's way – 2050: Common goal, common interests, common future";

2) The 74th and 75th steps of the National Plan of five institutional reforms of the President of the Republic of Kazakhstan;

3) Address of the President of the Republic of Kazakhstan to the People of Kazakhstan dated January 31, 2017 – "The Third modernization of Kazakhstan: global competitiveness".

The Subsoil Code was developed primarily in order to increase the effectiveness of regulation of exploration and production of minerals, introduce new approaches to public management of the field of subsoil use, stimulate investment in exploration and traditional extractive sectors by simplifying procedures for granting exploration and production rights in the field of subsoil use in accordance with international practice (the declarative principle in mining and auction house - in the oil and gas industry), the introduction of the international system of standards for reporting on exploration results, resources and reserves of solid minerals (CRIRSCO).

The Subsoil Code has revised the mechanisms of legal regulation of the sphere of subsoil use, which have been well-established since Soviet times, both in general and in certain areas. Significant changes also affected control functions: control over the fulfillment of license and contract conditions and state control in the field of subsurface use, which are now more focused not on step-by–step processes, but on achieving certain results, for example, on the costs of operations in the field of solid minerals, or on the performance of work in the field of hydrocarbons.

A significant change is the exclusion of legal relations for the extraction of groundwater from the sphere of regulation of legislation on subsoil and subsurface use. These legal relations are currently classified as regulated by water legislation in order to eliminate fragmentation in the regulation of relations on the use of water resources, regardless of the volume of seizure and type of water body. It is logical that groundwater extraction relations should be regulated by water legislation, which collectively covers all issues of the water fund, consisting of surface and underground water bodies, which are often interconnected due to natural conditions.

The development of the Subsoil Code, including the stage of preparation and approval of its concept, lasted for four years from 2014 to the end of 2017. The working group on the development of the concept and draft of the Subsoil Code consisted of more than one hundred specialists and experts representing industry associations of the oil and gas and mining industries, law firms, central executive state bodies, oil and gas and mining foreign and Kazakhstani companies. In developing and defining the fundamental ideas and conceptual directions of the reform of legislation on subsoil use, it is necessary to emphasize the role of Sauranbaev N.E., Issekeshev A.O., Bozumbaev K.A., Dosmukhambetov M.D., Safinov K.B., Karabalin U.S., Akchulakov B.U., Magauova A.M., Toktabayeva T.S., Rau A.P., Baymisheva R.N., Shchegelsky G.A., Utemisov S.A., Baymakhanova G.A., Izmukhambetov B.S., Muradov A.S., Kim M.V., Adamyshina D.A., Izbastina B.T., Shakirova S.S., Baiterekova D.S., Almauytova S.B., Arymbek K.B., Kudaibergenova K.M., Bakenova R.B., Lebed V.I., Ilyasova K.M., Zhursunova R. M., Eresheva D. E., Nogaibai Z. M., Ibragimova M.A., Odilova T.A., Mukhamedova R.N., Yelyubaeva Zh.S., Telemtaeva M.B., Zakariyanova E.K., Shengelbaeva T. E.

Independent legal experts Yereshev D. E., Odilov T. A., Mukhamedov assisted the Ministry of Energy of the Republic of Kazakhstan and the Ministry of Industry and Infrastructural Development of the Republic of Kazakhstan in working on the text of the Subsoil Code from the beginning of project development until the adoption by the Parliament of the Republic of Kazakhstan in December 2017, as well as significant amendments to the Subsoil Code introduced in 2019 and 2021. R. N.

This commentary examines the norms of the General Part of the Subsoil Code, as well as those norms of the Special Part that primarily relate to the exploration and production of hydrocarbons. Thus, the sections and norms of the Special Part that do not relate to the field of hydrocarbons (exploration and production of TPI, uranium mining, etc.) remained outside the scope of the commentary.

The commentary is purely advisory in nature and reflects the subjective opinions of the authors on the relevant articles of the Subsoil Code. The opinions of the authors are based on their current understanding of the norms of the Code on the Subsoil and are not static.

The purpose of the commentary is solely to develop science and law enforcement practice, further improve legislation on subsoil and subsoil use for the benefit of current and future generations of Kazakhstanis.

When preparing the commentary, the team of authors was based on a foreign (primarily German) methodology for commenting on laws, where the main technique is not to present any single point of view on controversial issues, but to strive for the development of science and practice through the demonstration of various ways of understanding norms and existing problematic issues. The publication of the commentary was preceded by a lengthy discussion of its text by the author's team, and in some cases the author's positions on various issues were different, which was reflected in the final version of the commentary. At the same time, such a variety of opinions was welcomed during the final revision of the text by the authors, which is designed to be "alive", raise problematic and (or) controversial issues, and, where appropriate, show different points of view on them.

In any case, when using the commentary text, it should be assumed that:

1) the opinions expressed in it are the subjective advisory opinions of specific authors of comments on relevant articles, which may not coincide with the positions of the entire author's team as a whole, its individual members, or with the opinion of the Kazenergy Association;

2) The Kazenergy Association does not bear any responsibility for the content of the comments to the relevant articles of the Subsoil Code, including expert assessments, arguments, positions, conclusions, examples, etc. indicated by the authors in the text of the comments.;

3) members of the author's team who are not listed as authors of comments on specific articles of the Subsoil Code do not bear any responsibility for the content of such comments, including expert assessments, arguments, positions, conclusions, examples, etc., cited and used by the authors of comments on other articles of the Subsoil Code.;

4) any responsibility of the Kazenergy Association, the team of authors and individual authors is excluded for the practical use of the conclusions, opinions and positions stated by the authors on certain articles, as well as for possible other understanding of the relevant norms and articles of the Subsoil Code by government agencies, experts, consultants, companies and any other bodies, organizations and faces. The final decision on how to understand and apply a particular rule of the Subsoil Code always depends on the specifics of the specific situation and the specialists of various bodies and organizations considering such a situation. In this regard, the commentary is intended to help in understanding the norms and understanding their content as fully as possible, but it does not replace decisions taken by relevant authorities and/or organizations and their authorized persons in specific situations of law enforcement practice and/or disputes.

The team of authors sought to reflect in the commentary in the most concise form the points and questions that are important for understanding and applying the norms of the Code on the Subsoil, their interrelation and logical construction.

Nevertheless, the opinions and conclusions expressed in the commentary should not be considered by the reader as the ultimate truth and in this regard in no way pretend to be absolute completeness and indisputability. In this regard, the authors will be grateful for feedback, questions and comments from readers, which can be sent to the following email address: kense@kazenergy.com .

The commentary was prepared with the support of 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, without which the preparation of such a large-scale work would hardly have been possible. The above-mentioned companies do not bear any responsibility for the content of the comments to the relevant articles of the Subsoil Code, including expert assessments, arguments, positions, conclusions, recommendations, examples, etc., indicated by the authors in the text of the comments. The expert assessments, arguments, positions, conclusions, etc. set out in the commentary are not assessments, arguments, positions, conclusions, recommendations, etc. of the above-mentioned companies either in general or on specific issues.

Along with participating in the preparation and discussion of the commentary text, the specialists of White & Case Kazakhstan LLP also provided significant assistance to the Kazenergy Association in carrying out editorial text processing.

A commentary has been prepared to the text of the Subsoil Code as of November 2021. The authors tried to take into account all significant changes to the Code as of the specified date.

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Republic of Kazakhstan

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