REPUBLIC OF LITHUANIA

REPUBLIC OF LITHUANIA REPUBLIC OF LITHUANIA LAW ON STATE STOCKS OF PETROLEUM PRODUCTS AND CRUDE OIL 25 June 2002 No. IX-986 Article

1. Purpose of the Law The purpose of this Law shall be to ensure that state stocks of petroleum products and/or crude oil are built, accumulated, maintained and that their use is monitored. Article
2. Definitions
3. Building of stocks - determining the nomenclature, the amount of funds, stocks, time periods for building them and terms and conditions of their storage,
4. Accumulation of stocks - purchasing of stocks and their keeping in storage locations.
5. Maintenance of stocks - renewal, replacement, writing off, accounting and rebuilding of stocks;.
6. Use of stocks - the use of stocks for the production of energy or their sale in accordance with the procedure and restrictions imposed by this Law and other legislation.
7. Emergency in the energy sector - a period during which there are disruptions in the supply of energy reserves or energy for energy enterprises and consumers and their supply is obstructed to the extent that energy enterprises cannot either forecast or respond to these disruptions by economic methods as well as a period when a state of emergency or a state of war has been declared. CHAPTER TWO BUILDING, ACCUMULATION AND MAINTENANCE OF STOCKS Article
8. Entities Accumulating Stocks
9. Stocks indicated in Article 7 of this Law must be accumulated by enterprises producing petroleum products, enterprises importing petroleum products and state enterprises assigned by the Government or an institution authorised by it. A portion of fuel oil stocks shall be accumulated and maintained, following the procedure established by the Government, the energy producing enterprises.
10. The enterprises engaged in import and production of liquefied petroleum gas must accumulate and maintain stocks of liquefied petroleum gas intended for household needs. The levels of liquefied petroleum gas stocks and the procedure of their maintenance and building shall be established by the Government or an institution authorised by it.
11. Enterprises which do not exceed the minimum annual amount of produced, imported, sold or used petroleum products determined by the Government do not have to build and maintain stocks. Article
12. Accumulation and Maintenance of Stocks
13. Stocks shall be accumulated and maintained with own resources of enterprises, state budget appropriations which are set out in the Law on the Approval of the Financial Indicators of the State Budget for a separate special programme (hereinafter "state funds"), and with other lawfully acquired funds. 50 % of stocks shall be accumulated and maintained with state funds.
14. Enterprises which are under the obligation to build stocks shall pay with own funds all the expenses relating to the accumulation and maintenance of the stocks assigned to them. The expenses sustained shall be included in the costs of the goods or services sold by them.
15. The expenses indicated in paragraph 2 of this Article shall be included in accounting under a separate item.
16. Stocks accumulated with own resources of the enterprises shall be their property. Stocks accumulated with state funds shall be the property of the state. The stocks which are state property shall be accumulated and maintained in trust by state enterprises assigned by the Government or an institution authorised by it.
17. The procedure for building, maintaining, accumulating and monitoring stocks shall be determined by the Government or an institution authorised by it. The Government or an institution authorised by it shall have a right to set the stock storage sites for state and municipal enterprises which are building stocks. Article
18. Quality of Stocks The quality of stocks of petroleum products must meet the obligatory quality indicators and standard requirements and technical conditions. Enterprises under the obligation to maintain stocks shall be responsible for the quality of stocks. Article
19. Levels of Stocks
20. A state must maintain its stocks of petroleum products at a level corresponding, for each of the categories of petroleum products listed in Article 7 of this Law, to at least 90 days' average daily internal consumption in the preceding calendar year.
21. When determining the need for stocks of petroleum products, the level of stocks may be reduced by deduction from the amount of the petroleum products consumed during the preceding calendar year of the amount of petroleum produced indigenously by the state, recalculated into petroleum products up to a maximum of 25% of the internal consumption.
22. The levels of stocks to be accumulated and the annual accumulation obligations for enterprises shall be determined by the State or an institution authorised by it. Article
23. Categories of Stocks
24. Stocks of the following petroleum products must be accumulated: 1) motor petrol, aviation fuel and jet fuel of gasoline type (category I of petroleum products); 2) diesel fuel, gas oil, kerosene, jet fuel of kerosene type (category II of petroleum products); 3) heating oil/fuel oil (category III of petroleum products).
25. Part of the stocks may be accumulated in the form of crude oil or intermediate products. If this is the case, crude oil and intermediate products must be recalculated into petroleum products according to the quantities obtained during the preceding calendar year from the refineries of the state. The foregoing shall apply to not more than 40% of the products of first and second categories, and to not more than 50% of the products of the third category. Article
26. Composition of Stocks
27. Stocks may be built of crude oil and petroleum products in the possession of a state where they are held at: 1) storage facilities/terminals of enterprises; 2) reservoirs of crude oil terminals; 3) oil tankers in ports.
28. Imported crude oil or petroleum products may be attributed to stocks only after the completion of import formalities.
29. The following may not be attributed to stocks: 1) indigenous oil not yet extracted; 2) supplies intended for the bunkers of sea-going vessels or held in bunkers of sea-going vessels; 3) supplies intended for direct transit; 4) supplies in pipelines, in road tankers or rail tank-wagons; 5) supplies held by the armed forces or those intended for them; 6) supplies stored in retail outlets ; 7) irretrievable remainder in reservoirs.
30. Composition of the stocks shall be prescribed for each stockholding enterprise by an institution authorised by the Government . Article
31. Storage of Stocks
32. Stocks must be stored within the territory of the state, in oil/petroleum products storage facilities meeting the requirements laid down in legal acts. The storage facilities/terminals must be fitted out in such a way as to make it possible to draw from them and transport petroleum products to the site of their consumption by road, rail or pipeline. In cases provided for by international agreements to which the Republic of Lithuania is a party stocks may also be held in other states.
33. Stocks may be held in tax warehouses. CHAPTER THREE REGULATION OF USE OF STOCKS Article
34. Use of Stocks
35. The stocks specified in Article 6