Commentary to article 22. Types of subsurface use operations to the Code of the Republic of Kazakhstan “On Subsurface and Subsurface Use”
The right of subsurface use is granted for the following operations::
1) geological exploration of the subsurface;
2) mineral exploration;
3) mining;
4) use of subsurface space;
5) diligence.
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(Yereshev D.E.)
1. The 1992 Code on Subsurface Resources and Processing of Mineral Raw Materials provided for two main types of subsurface use: geological exploration and mining. The subsoil could also be provided for the disposal of harmful substances, industrial waste and wastewater discharge, and the extraction of OPI for their own needs. The 1992 Code on Subsurface Resources and Processing of Mineral Raw Materials considers each type of operation, as a rule, as a separate type of subsurface use. In the Decree on the Subsoil of 1996 The concept of "subsurface use operations" is introduced, which includes four main types of operations: work related to the state geological study of the subsurface, exploration, production, including work related to the exploration and extraction of groundwater, therapeutic mud, exploration of the subsurface for wastewater discharge, as well as work on construction and operation. underground structures that are not related to mining. Based on the types of operations, the 1996 Decree on Subsoil provided for the appropriate types of subsoil use rights. To carry out subsurface use operations, it was necessary to issue the appropriate type of license and contract (in 1999, the license was abolished). The 2010 Law on Mineral Resources provided for a similar approach.
2. The resources contained in the subsurface are limited and, as a rule, not renewable. They determine the value of the subsoil as a source of economic well-being of the state. Since, according to the Constitution, the subsoil is state property, the right to use the subsoil is derivative and has restrictions established on the basis of the law. The boundaries of the powers of holders of the right of subsurface use are defined by the Subsoil Code. St. 22 defines the types of operations that can be carried out by holders of the right of subsurface use, taking into account the generally accepted stages of exploration, the ultimate purpose of which is to determine the economic value of subsurface resources.
Each type of subsurface use operation solves certain tasks. For example, a geological study is aimed at collecting the minimum required amount of geological information by conducting aerogefysical and other types of work (see commentary to Article 89 of the Subsoil Code) over large areas to identify promising areas where more detailed studies can be carried out at the exploration stage. For this reason, for each stage of the work, appropriate specific requirements for the types and
working conditions, requirements for subsurface users, and special regulatory mechanisms.
It is the operations of subsurface use that determine the content of the right of subsurface use, are a key tool for determining the boundaries of the rights holders in relation to the subsoil, and establishing a regime of state regulation.
Of the listed types of operations, diligence stands out. The separation of these operations into a separate type is not related to the generally accepted stage of exploration work. Prospecting as a type of operation is aimed at providing citizens of the country with the opportunity to use the subsoil to generate income through mining on a small scale of precious metals and stones. This allows not only to reduce the illegal turnover of precious metals and stones, but also to provide self-employment to certain groups of citizens.
3. Article 22 is general and serves to classify certain works by assigning them to a specific type of subsurface use operations, taking into account the stages of their implementation. At the same time, the relevant work related to a particular type of subsurface use operations is defined in the Special Part of the Code on Subsurface Resources for each type of mineral. Thus, for UCS and uranium, the content of mining operations is determined based on Uniform Rules.
4. The article consists of one part and five sub-paragraphs, which contain a list of subsurface use operations. These types of operations are defined taking into account the stages of work: geological exploration, exploration, mining, use of subsurface space, prospecting.
The first two types (geological survey and exploration) relate to prospecting activities, the ultimate goal of which is to identify commercially viable deposits and assess the reserves contained therein. Geological structures that are suitable for other purposes are also identified at this stage.
The other three types of subsurface use operations (mining, use of subsurface space, and prospecting) are the final stage of the life cycle of subsurface resources, during which direct economic benefits are derived from the use of subsurface resources.
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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
