REPUBLIC OF LITHUANIA

REPUBLIC OF LITHUANIA OFFICIAL TRANSLATION REPUBLIC OF LITHUANIA LAW ON STATE STOCKS OF PETROLEUM PRODUCTS AND CRUDE OIL 25 June 2002 No IX-986 Vilnius (As last amended on 12 January 2009 No XI-137) Article

1. Purpose of the Law
2. The purpose of this Law shall be to ensure control of the building, accumulation, management and use of state stocks of petroleum products and/or crude oil.
3. The provisions of the law have been harmonised with the legal acts of the European Union specified in the annex of this law. Article
4. Definitions
5. Delivering enterprise shall mean the enterprise registered in the Republic of Lithuania, which delivers from the enterprises of the European Community member states the crude oil and petroleum products purchased for its own consumption or for sale for the internal use.
6. Delivery, departure shall mean the delivery, departure of crude oil and petroleum products from the customs territories of countries or territories charged to customs territory of other countries or territories of the European Community.
7. Building of stocks shall mean determining the stock nomenclature, the amount of funds, the amount of stocks, time periods for accumulating stocks and terms and conditions of their storage.
8. Stockpiling shall mean purchasing of stocks and their keeping in the storage sites.
9. Management of stocks shall mean renewal, substitution, write-down, accounting, restoring of stocks.
10. Use of stocks shall mean 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 laws.
11. Emergency in the energy sector shall mean a period during which there are disruptions in the supply of energy reserves or energy for energy enterprises and consumers and obstruction of their supply 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 is declared according to the procedure established by law . CHAPTER TWO BUILDING, ACCUMULATION AND MANAGEMENT OF STOCKS Article
12. Entities Accumulating Stocks
13. Stocks specified in Article 7 of this Law shall be accumulated by enterprises producing petroleum products, enterprises importing petroleum products and enterprises delivering to the country 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 managed, following the procedure established by the Government, the energy producing enterprises.
14. The 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 manage stocks. Article
15. Accumulation and Management of Stocks
16. Stocks shall be accumulated and managed with the enterprise’s own resources, state budget allocations which are set out in the Law on the Approval of Characteristics of State and Municipal Finance for one specific programme (hereinafter "state funds"), with other lawfully acquired funds. The amount of petroleum products accumulated and managed with state funds shall suffice for at least 30 days.
17. Enterprises, which are under the obligation to build stocks, shall pay with own funds all the expenses relating to the accumulation and management of the stocks assigned to them. The expenses sustained shall be included in the costs of the goods or services sold by them.
18. The expenses indicated in paragraph 2 of this Article shall be entered in the record under a separate item.
19. 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 kept in trust by the state bodies or state enterprises appointed by the Government of the Republic of Lithuania.
20. The enterprises obligated to accumulate stocks may conclude stock accumulation and management contracts with other enterprises registered in the Republic of Lithuania providing stock accumulation and management services. The Government of the Republic of Lithuania shall establish the conditions of providing stock accumulation and management or the body authorised by it.
21. The building, management, accumulation, control procedure shall be established by the Government or the body authorised by it. The Government or the body authorised by it shall be entitled to indicate to state or municipal enterprises accumulating stocks the stock storage sites. Article
22. Quality of Stocks The quality of stocks of petroleum products held in store must meet the requirements of mandatory quality indicators and standards or technical arrangements. Enterprises under the stock building obligation shall be responsible for the quality of stocks. Article
23. Level of Stocks
24. A state shall maintain their stocks of petroleum products for each of the categories specified in Article 7 of this Law at a level corresponding to at least 90 days' average daily internal consumption in the preceding calendar year.
25. When determining the need for stocks of petroleum products, the level of stocks may be reduced by deducing 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.
26. The levels of stocks to be accumulated and the annual accumulation obligations for enterprises shall be determined by the State or the body authorised by it. Article
27. Categories of Stocks
28. Stocks of the following petroleum products shall be accumulated: 1) motor spirit, aviation gasoline and spirit type jet fuel (category I of petroleum products); 2) diesel fuel, gas oil for fuel, kerosene, jet fuel of kerosene type (category II of petroleum products); 3) oil heating /fuel oil (category III of petroleum products).
29. 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 shall 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 the first and second categories, and to not more than 50% of the products of the third category. Article
30. Composition of Stocks
31. 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.
32. Imported, delivered crude oil or petroleum products may be attributed to stocks only after the completion of import or delivery formalities.
33. The following may not be attributed to stocks: 1) indigenous oil not yet extracted; 2) stocks intended for the bunkers of sea-going vessels or held in bunkers of sea-going vessels; 3) stocks intended for direct transit; 4) stocks in pipelines, in road tankers or rail tank-wagons; 5) stocks held by the armed forces or those intended for them; 6) stocks stored in filling stations; 7) balances in reservoirs. Article
34. Storage of Stocks
35. Stocks shall be stored in the territory of the state, in oil/petroleum product storage facilities (terminals) 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.
36. Stocks may be held in tax warehouses. CHAPTER THREE REGULATION OF USE OF STOCKS Article
37. Use of Stocks
38. The stocks specified in Article 6