Commentary to article 348. Carrying out work on the extraction of hydrocarbons without carrying out a state examination of mineral reserves The Code of the Republic of Kazakhstan on Administrative Offences
Carrying out work on the extraction of hydrocarbons without carrying out a state examination of mineral reserves –
entails a fine in the amount of twenty monthly calculation indices.
The object of the commented offense is the established procedure for carrying out work on the extraction of hydrocarbons.
Paragraph 3 of Article 12 of the Code of the Republic of Kazakhstan dated December 27, 2017 No. 125-VI SAM "On Subsoil and Subsoil Use" states that oil, crude gas and natural bitumen are recognized as hydrocarbons.
Crude oil, gas condensate, and hydrocarbons obtained after refining crude oil and processing oil shales, oil tar sands, or tar sands are recognized as oil.
Crude oil is any hydrocarbons, regardless of their specific gravity, extracted from the subsurface in a liquid state at normal atmospheric temperature and pressure, including those formed from crude gas by natural condensation.
Crude gas is any hydrocarbons, regardless of their specific gravity, extracted from the subsurface in a gaseous state at normal atmospheric temperature and pressure, including crude natural, associated, shale gas, coalbed methane, as well as non-hydrocarbon gases contained in their composition.
Associated gas is a multicomponent mixture of hydrocarbons and non-hydrocarbon gases found in the oil in a dissolved state in reservoir conditions and released from it when pressure decreases.
Coalbed methane is a multicomponent mixture of hydrocarbons and non-hydrocarbon gases with a predominant methane content, which is in a gaseous state at normal atmospheric temperature and pressure, extracted from coal deposits.
Natural bitumen is recognized as minerals of organic origin with a primary hydrocarbon base, lying in the subsurface in solid, viscous and viscous-plastic states, the extraction of which in natural conditions by borehole methods is technically impossible.
According to Article 141 of the Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use", the state examination of the subsoil is carried out in order to create conditions for the rational use of the subsoil, state accounting of geological reserves of hydrocarbons, as well as to assess the reliability of information on the quantity and quality of explored geological reserves of hydrocarbons.
The state examination of subsurface resources is carried out by analyzing a report on the calculation (operational calculation) of geological reserves, developed by a design organization licensed for the relevant type of activity, and approved by the subsurface user.
The report on the calculation (operational calculation) of geological reserves is compiled in accordance with the regulatory and technical documents approved by the authorized body in the field of hydrocarbons.
The state examination of subsurface resources is carried out by the Central Commission on Hydrocarbon Reserves of the Republic of Kazakhstan (the Central Commission on reserves) with the involvement of independent experts with special knowledge in the field of geology and subsoil use and not interested in the results of the examination.
The organization of the activities of the central reserves commission, its composition, work regulations and record keeping are determined by the regulations on the Central Commission on Mineral Reserves of the Republic of Kazakhstan, approved by the authorized body in the field of hydrocarbons.
The state examination of subsurface resources is carried out within three months from the date of receipt of the report on the calculation (operational calculation) of geological reserves.
The term of the state examination of subsurface resources may be extended by a decision of the central reserves commission, but not more than three months.
The results of the state examination of the subsurface are formalized by an expert opinion, which can be positive or negative.
The grounds for issuing a negative expert opinion are:
1) the discrepancy between the conducted calculation (operational calculation) of the geological reserves of a hydrocarbon deposit and the requirements established in the regulatory and technical documents approved by the authorized body in the field of hydrocarbons;
2) unreliability of information on the quantity and quality of geological hydrocarbon reserves;
3) the impossibility of an objective assessment of the quantity and quality of geological hydrocarbon reserves based on the data provided.
The negative conclusion of the state expert examination of the subsoil provides the justification for its issuance and recommendations for finalizing the report.
The expert opinion is sent to the subsurface user within five working days from the date of its signing by the chairman and members of the central Reserves commission.
The positive conclusion of the state expertise of the subsurface is the basis for the establishment of geological reserves of a hydrocarbon deposit on the state register.
In paragraph 401 of the "Uniform Rules for the Rational and Integrated Use of Subsurface resources in the exploration and extraction of Minerals", approved by Joint Order No. 1072 of the Minister of Investment and Development of the Republic of Kazakhstan dated November 17, 2015 and No. 675 of the Minister of Energy of the Republic of Kazakhstan dated November 30, 2015, "a subsurface user who has the right to subsurface use for mining begins mining only after conducting a state examination of mineral reserves. The conclusion of the state expertise on the profitability of the development of proven mineral reserves is the basis for their placement on the state balance sheet."
Paragraph 31 of the "Uniform Rules for the Rational and Integrated Use of Subsurface Resources", approved by the Order of the Minister of Energy of the Republic of Kazakhstan dated June 15, 2018 No. 239, states that in order to conduct trial operation, a subsurface user must perform an operational calculation of hydrocarbon reserves and obtain a positive conclusion from the state expertise of the subsurface.
According to clause 35 of the "Uniform Rules for the Rational and Integrated use of Subsurface resources", based on the results of exploration work performed during the exploration period, a report is compiled on the calculation of reserves and a state examination of subsurface resources is conducted. The data obtained should be sufficient to reliably substantiate the conditions, calculate reserves with their approval in accordance with the established procedure, and design the development of hydrocarbon deposits.
In accordance with paragraph 144 of the "Uniform Rules for the Rational and Integrated use of subsurface resources", the state examination of the field development project is carried out by the Central Commission for the Exploration and Development of Hydrocarbon Deposits of the Republic of Kazakhstan (central commission) with the involvement of independent experts with special knowledge in the field of geology and development and not interested in the results of the examination.
The objective side of the offense is expressed in actions to carry out work on the extraction of hydrocarbons without carrying out a state examination of mineral reserves.
The subjective side of the offense is characterized by the fact that the act can be committed either intentionally or negligently.
The general subject of the offense is individuals or legal entities.
In accordance with Part 1 of Article 688 of the Administrative Code, the authorized body in the field of hydrocarbons examines cases of administrative offenses provided for in Article 348 of the Administrative Code.
Scientific and practical commentary to the Code of the Republic of Kazakhstan on Administrative Offences (article-by-article) from the Author's team:
Bachurin Sergey Nikolaevich, Candidate of Law, Associate Professor – chapter 48 (co-authored with E.M. Khakimov);
Gabdualiev Mereke Trekovich, Candidate of Law – Chapters 11, 21, 22, 23;
Zhusipbekova Ainur Maratovna, M.yu.n. – chapter 13 (co-authored with Karpekin A.V.); chapters 33, 39 (co-authored with Seitzhanov O.T.);
Karpekin Alexander Vladimirovich, Candidate of Law, Associate Professor – chapter 13 (in collaboration with Zhusipbekova A.M.);
Korneychuk Sergey Vasilyevich – chapters 2; chapter 6 (co-authored with O.T. Seitzhanov, E.M. Khakimov); chapter 8; chapter 25 (co-authored with E.M. Khakimov); articles 457-470, 488, 488-1, 491-506; chapters 28, 30, 52;
Ilya Petrovich Koryakin, Doctor of Law, Professor – Chapter 49;
Kisykova Gulnara Bauyrzhanovna, Candidate of Law – chapter 20;
Omarova Botagoz Akimgereevna, Candidate of Law – chapters 17; chapter 18 (co-authored with B.A. Parmankulova); chapters 26, 31; chapter 32 (co-authored with B.A. Parmankulova);
Parmankulova Bayan Askhanbaevna – chapter 18 (co-authored with Omarova B.A.); chapters 19, 32 (co-authored with Omarova B.A.); chapter 43 (co-authored with Tukiev A.S.);
Podoprigora Roman Anatolyevich, Doctor of Law, Professor - Chapter 24, articles 489, 489-1, 490;
Porokhov Evgeny Viktorovich, Doctor of Law – Chapters 14, 15, 16, 29, articles 471-475;
Seitzhanov Olzhas Temirzhanovich, Candidate of Law, Associate Professor, – chapter 4; chapter 5 (co-authored with E. M. Khakimov); chapter 6 (co-authored with S.V. Korneychuk, E.M. Khakimov); chapter 9; chapter 10 (co-authored with B.E. Shaimerdenov, V.V. Filin); chapter 33 (co-authored with Zhusipbekova A.M.); chapter 36 (co-authored with Shaimerdenov B.E.); chapter 39 (co-authored with Zhusipbekova A.M.);
Smyshlyaev Alexander Sergeevich, PhD. – chapters 38, 40, 42, 43-1 (co-authored with A.S. Tukiev); chapter 44;
Aslan Sultanovich Tukiev - Candidate of Law, Associate Professor – chapters 1, 3, 35; chapters 38, 40, 42, (co-authored with A.S. Smyshlyaev); chapter 43 (co-authored with B.A. Parmankulova); chapter 43-1 (co-authored with A.S. Smyshlyaev); chapter 44-1 (co-authored with Shipp D.A.); chapter 45; 46 (co-authored with Shipp D.A.); chapter 47;
Filin Vladimir Vladimirovich, Candidate of Law, Associate Professor – Chapter 10 (in collaboration with O.T. Seitzhanov, B.E. Shaimerdenov);
Yerzhan Maratovich Khakimov, M.yu.n. – chapter 5 (co-authored with O.T. Seitzhanov); chapter 6 (co-authored with O.T. Seitzhanov, S.V. Korneychuk); chapter 7; chapter 25 (co-authored with S.V. Korneychuk); chapters 34, 41; chapter 48 (co-authored with S.N. Bachurin); chapter 53;
Shaimerdenov Bolat Yerkenovich, M.yu.n., – chapter 10 (co-authored with O.T. Seitzhanov, V.V. Filin); chapter 12; articles 476-487, 507-509; chapter 36 (co-authored with O.T. Seitzhanov); chapters 37, 50, 51.
Shipp Denis Alekseevich – chapters 44-1, 46 (in collaboration with A.S. Tukiev).
Date of amendment of the act: 01.01.2020 Date of adoption of the act: 01.01.2020 Place of acceptance: 100050000000 Authority that adopted the act: 103001000000 Region of operation: 100000000000 NPA registration number assigned by the regulatory body: 5 Status of the act: new Sphere of legal relations: 029000000000 / 028000000000 / 029002000000 / 028004000000 / 029001000000 / 026000000000 / 001000000000 / 001008000000 / 030000000000 The form of the act: COMM / CODE Legal force: 1900 Language of the Act: rus
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