Translation from Lithuanian

Translation from Lithuanian Translation from Lithuanian Government of the Republic of Lithuania R E S O L U T I O N No. 169 On the Acceletation of Oil Production and Processing Vilnius, 16 March 1992 Considering the necessity to proceed with the exploitation of oil deposits, to accelerate prospecting and exploration of new deposits, to decide on the options of oil utilization the Government of the Republic of Lithuania r e s o l v e s:

1. To establish that licence for oil exploration and production shall be issued by way of competition by the Government of the Republic of Lithuania upon the recommendation by Oil Works Licence Committee with the agreement of the Department of the Environment.
2. To grant licence to Gargþdai State Oil Geology Enterprise to exploit the explored Genèiai, Nausodis, Kretinga, southern Ðliûpariai, Vilkyèiai, Degliai, Pociai, Vëþaièiai and Ablinga fields.
3. To instruct the Ministry of Energy and State Geology Service and enterprises under their supervision to proceed with oil production in the fields mentioned in Article 2 hereof and the refining thereof.
4. To instruct the Ministry of Trade and Material Resources to assist the enterprises mentioned in Articles 2 and 3 hereof in acquisition of equipment for oil production, storage, transportation and refinery.
5. To establish Oil Works Licence Committee. The Ministry of Energy, Ministry of Economics, Ministry of Trade and Material Resources, State Geology Service and Department of the Environment are to submit one candidate each to the said Committee.
6. To instruct the Ministry of Energy and State Geology Service to draft and submit for approval to the Oil Works Licence Committee a program on oil production for the year 1992 in Lithuania.
7. The Ministry of Energy, Ministry of Economics, State Geology Service and Ministry of Trade and Material Resources shall develop provisional regulations on the evaluation/ price setting and sale of Lithuanian oil.
8. To approve: 8.
9. Statutes of the Oil Works Licence Committee (enclosed); 8.
10. Provisional regulations on oil prospecting, exploration and production in the Republic of Lithuania (enclosed). Prime Minister Gediminas Vagnorius Approved by Resolution No. 169 of 16 March 1992 of the Government of the Republic of Lithuania Statutes of Oil Works Licence Committee General Provisions
11. Oil Works Licence Committee ( henceforth, the Committee) is formed by the Government of the Republic of Lithuania to deal with issues pertinent to the licencing of oil works by legal and natural entities of the Republic of Lithuania and foreign states and to ensure state interests by providing for the most efficient and secure process of oil works.
12. In its activities the Committee shall comply with the Constitution of the Republic of Lithuania (the Fundamental Law), other legislation of the Republic of Lithuania, resolutions of the Government of the Republic of Lithuania, decrees and other normative acts, provisional rules and regulations on oil prospecting, exploration and production in the Republic of Lithuania and these Statutes. Objectives and Functions of the Committee
13. The main objectives of the Committee are to ensure: 3.
14. the participation of the most technically and financially advanced Lithuanian and foreign legal and natural entities in oil works; 3.
15. most secure and most beneficial to the state course of oil works.
16. To implement the objectives, the Committee shall carry out the following functions: 4.
17. issue licence for prospecting oil deposits; 4.
18. submit recommendations to the Government on the issuance of licences for oil exploration and extraction; 4.
19. draft normative acts regulating oil works; 4.
20. approve regulations of of the procedure of competition for granting licences on oil works; 4.
21. upon instruction of the Government of the Republic of Lithuania set the date for competition; 4.
22. carry out expertize of agreements on oil works and submit proposals to the Government of the Republic of Lithuania; 4.
23. endorse oil works programs; 4.
24. examine the validity, suspension, cancellation of and (upon request of the licencee) changes in licence terms, as well as transfer thereof to other legal and natural entities of the Republic of Lithuania and foreign states; 4.
25. approve reports on work carried out. Composition of Committee and Organization of Work
26. The Committee shall consist of one representative each from the following institutions: the Department of the Environment of the Republic of Lithuania, Ministry of Energy, Ministry of Economics, Ministry of Trade and Material Resources, and State Geology Service.
27. The Committee shall be headed by Chairman appointed from the leaders of the Ministry of Energy, or, in his absence, by Deputy Chairman. Chairman and Deputy Chairman shall be appointed and dismissed and members of the Committee shall be approved by Prime Minister of the Republic of Lithuania upon recommendation of the organizations mentioned in Article 5 hereof.
28. Chairman of the Committee shall organize the work of the Committee.
29. The Committee shall adopt all decisions by consensus.
30. The Committee shall carry out its functions without exceeding its powers. Rights of the Committee
31. The Committee shall enjoy the right: 10.
32. to have access to the information needed for the implementation of functions defined in Article 4 hereof from ministries, state agencies, enterprises and organizations under their supervision. 10.
33. to resort to assistance of scientific and other organizations according to the established procedure; 10.
34. to independently settle existing problems without exceeding its powers and responsibilities. Responsibilities of the Committee
35. Members of the Committee shall be deemed responsible for the decisions of the Committee without exceeding the powers of state agencies they represent.
36. Chairman of the Committee shall bear personal responsibility for the implementation of tasks entrusted to the said Committee. _______________________ Approved by Resolution No. 169 of 16 March 1992 of the Government of the Republic of Lithuania Provisional Regulations of Oil Prospecting, Exploration, and Production in the Republic of Lithuania General Provisions
37. Provisional regulations of oil prospecting, exploration, and production shall establish the procedure of oil works ( forecasting, prospecting, exploration and exploitation of oil fields on the territory of the Republic of Lithuania (onshore and offshore). These regulations shall be obligatory to all legal and physical entities of the Republic of Lithuania and foreign countries who seek to carry out or carry out oil works in the Republic of Lithuania. State Agencies in Charge of Licencing Oil Works
38. Licences on oil exploration and exploitation shall be issued to Lithuanian and foreign legal and physical entities by separate decisions of the Government of the Republic of Lithuania upon the recommendation of Oil Works Licence Committee ( henceforth, the Committee) in coordination with the Department of the Environment of the Republic of Lithuania.
39. Licences to forecast oil deposits shall be issued to Lithuanian and foreign legal and physical entities by State Geology Service in coordination with the Department of the Environment and regional boards.
40. The Committee shall issue licences to Lithuanian and foreign legal and physical entities to prospect oil deposits and submit proposals to the Government of the Republic of Lithuania on the issuance of licences to carry out other oil works. State Enterprises and Organizations Authorized to Carry Out Oil Works
41. The following state enterprises and organizations shall be authorized to carry out oil works: 5.
42. Gargþdai State Oil Geology Enterprise: shall carry out oil works in compliance with its statutes, shall take part in exploration and recovery operations on its own or with joint ventures by way of using state assets allocated to it (premises, facilities, equipment, discovered oil fields, oil wells and geological data), 5.
43. The Institute of Geology of the Republic of Lithuania shall: forecast quantities of oil in an oil field, examine oil quality and carry out other research necessary to carry out oil works. Terms of Oil Works
44. Oil works shall include forecasting, prospecting, exploration and exploitation (oil extraction).
45. Forecasting of oil quantities in the deposits shall include research works and special drilling that enables to discover oil deposits, esablish prospective oil fields and direct oil prospecting.
46. Oil prospecting shall comprise geological, geophysical and other auxiliary operations necessary to discover direct traces of oil under conditions that favour its accumulation.
47. Oil exploration shall include geological, geophysical, technological and other operations necessary to establish the size, form, and structure of oil deposits, characteristics of oil deposits and conditions for oil extraction as well as the trial extraction of an established amount.
48. Oil production shall include operations necessary to recover oil to the surface, its processing, purification, storage, and transportation to the customer (purchaser), as well as the mounting of equipment, communication lines, road construction, maintenance and liquidation following the completion of oil works. Right to Carry Out Oil Works
49. The right to carry out oil works shall be granted to all legal and physical entities of the Republic of Lithuania and foreign countries (henceforth, licencee) who have acquired the licence for oil works and enjoy the right to rent an oil field.
50. The right to explore oil deposits and recover oil shall be vested exclusively with Gargþdai State Oil Geology Enterprise or with joint ventures formed together with the said Enterprise if deposits were found with the participation of such joint ventures.
51. The right to carry out oil works may be transferred to other legal and physical entities of the Republic of Lithuania and foreign countries only upon the permission of the Government of the Republic of Lithuania. Oil Fields
52. Sites designated for prospecting oil deposits shall consist of a series of individual plots corresponding to the topographical areas of 1:25000 scale with lateral sides equal to 7'30 longitude and 5' latidude. The sites may be restricted by state borders and coastline.
53. Sites designated for oil prospecting may consist of 1 to 16 constituent plots and of 1 to 4 constituent plots for exploration, without including incomplete constituent plots limited by state border or coastline. The plots shall not include areas with previously discovered deposits for the exploration or exploitation of which a separate licence may be issued.
54. A plot designated for oil prospecting may be reduced in the period of the validity of the licence as established in the working program or the contract or upon request of the licencee with the permission of the Committee and also by a special decision of the Committee when the stipulations of the contract are not observed. In such case a new licence for prospecting oil deposits on the site where operations were terminated may be issued.
55. Lithuanian and foreign legal and physical entities who obtained the right to carry out oil prospecting operations in the order established must obtain a decision by regional board on the lease of oil field for prospecting operations. This decision shall establish the order of compensation for damages done to the agriculture.
56. The site for oil exploration and extraction shall be allocated so as to include one or several adjacent oil pools. Land plots for road construction, installations of electric and communications lines, pipelines and other auxiliary plant may be allotted nearby if such facilities and installations cannot or should not be mounted on such site.
57. The licencee shall be issued only one type of licence for one oil field. A licencee may have same or different licences for several oil fields, however, each licence shall be issued by way of a separate competition.
58. Additional plot for oil prospecting may be granted without competition provided it is proved that the site lies on the boundary of the oil pool exploited. In such case no more than two additional individual plots shall be allocated. Decisions thereon shall be adopted by the Committee.
59. Legal and physical entities of the Republic of Lithuania and foreign countries granted the licence for oil exploration or exploitation in compliance with the established order shall rent the plot where the said operations are carried out. Provided the licence to explore or exploit an oil field be transferred to another legal or physical entity of the Republic of Lithuania or a foreign state in the order established, the rent of the site where the said operations take place shall be reregistered. Issuance of Licences on Oil Works
60. A separate licence shall be issued for each type of oil works. State fee shall be established for the issuance of the said licence.
61. Licences on oil prospecting shall be valid for a period of no longer than 3 years. They may be extended up to 3 years. Such licences shall not provide the right to explore or exploit oil fields discovered on the designated site prior or during the term of the licence and shall not grant priority right to such licence.
62. Licences for the exploration of oil fields shall grant priority right to licence on oil recovery from the explored fields.
63. Licences for the exploration of oil fields shall be issued for a period of 3 years and may be extended once for no longer than 3 years.
64. The expiry of licence on oil production shall depend on the regime of oil production and its economic feasibility. The term of validity of such licence shall be established by the contract and the working program and may be modified by a decision of the Government of the Republic of Lithuania only. Duties and Powers of Licencees
65. The licencee shall have the following duties: 27.
66. to carry out all oil works as established by the program within the timeframe established therein, and in compliance with quality, environmental and labor safety requirements stipulated in the legislation of the Republic of Lithuania and other normative acts . Deviations from the oil works program may take place only with the approval of the Committee. In drafting the program State Geology Service may instruct the licencee to do additional works pertinent to oil operations ( studies of heat streams, as well as radioactivity, stratographic, hydrogeological, geochemical, geophysical studies); ___________________________