Subsoil

 

On 3 May 2012 the Government issued Resolution No. 429 on establishing and changing the boundaries of subsoil plots granted for use.

In accordance with Article 7 of the Law “On Subsoil”, the Resolution approves the procedure for establishing and changing the boundaries of subsoil plots which are granted for geological study and (or) exploration and production of natural resources. Under the Resolution, a change of boundaries may be implemented on a basis of an application to be submitted by the subsoil user to (i) the Federal Agency on Subsoil Use (“Rosnedra”) in relation to subsoil plots of federal significance and large subsoil deposits; (ii) regional authorities in relation to subsoil plots of local importance and (iii) territorial bodies of Rosnedra in other instances.

The Resolution, in particular, lists the grounds for changing of the boundaries of a subsoil plot which may be extended or reduced spatially in terms of area and depth. As opposed to reduction, an extension of boundaries may only be implemented once notwithstanding the number of cases when the subsoil use license was transferred or re-issued. The volume of reserves to be added shall not exceed 20% of subsoil deposit reserves included in a state balance register.

In addition, the Resolution establishes requirements to the contents of a subsoil user’s application in relation to the change of the boundaries of a subsoil plot and the documents supporting the application and defines the grounds for a refusal to change the boundaries.

The Resolution will enter into force seven says after the date of its official publication.

For further information please contact Igor Ostapets or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .

Share/Save