Permits for geological exploration may be issued only for cadastral squares in relation to land plots listed in Part Three of this Article, in agreement with local executive authorities or the landowner, respectively. Permits for the main types of activities in the sphere of subsoil use on cadastral squares in relation to land plots specified in Part Two of this Article shall be issued only for underground subsoil use, which will be carried out at a sufficient depth from the earth's surface, without impact on above-ground structures, and may be issued in agreement with local executive authorities and the population living in the relevant populated areas, taking into account compensation for possible damage.

Permits for geological exploration of subsoil may be issued for cadastral squares of agricultural land in accordance with the Land Code of the Republic of Uzbekistan. Permits for the main types of activities in the field of subsoil use for cadastral squares on which agricultural land is located are issued only for the use of subsoil, which will be carried out at a sufficient depth from the surface of the earth, without affecting agricultural activity and in agreement with the users of agricultural land (land plots), taking into account the payment of compensation for damage caused.

Article 35. Protection of subsoil areas of special natural, scientific and cultural value

State reserves, natural and geological parks, complex (landscape) reserves, natural monuments, biosphere reserves, state reserves and nurseries are protected natural territories, and any cadastral square located in such territory, in whole or in part, is not an open square. Protected natural territories have their own spatial boundaries. It is prohibited to carry out any activity that violates the safety of natural objects and complexes of these territories. Protected natural territories are subject to registration in the cadastre of the state subsoil fund.

Rare geological outcrops, mineralogical formations, paleontological objects and other subsoil areas that represent special scientific or cultural value may be declared protected geological objects, including geological reserves, reserves, natural and/or cultural monuments or scientific and educational sites.

Cadastral squares on lands classified as geological objects, geological reserves, sanctuaries, natural and/or cultural monuments, or intended for scientific or educational use, are considered protected geological objects after they have been assigned the appropriate status. Such status is entered into the cadastre of the state subsoil fund.

The use of subsoil areas in the territories of protected geological sites, geological reserves, wildlife sanctuaries, natural and (or) cultural monuments, or those reserved for scientific or educational purposes is permitted only with the permission of the Cabinet of Ministers of the Republic of Uzbekistan.

Activities in the territories of protected geological sites are carried out in accordance with the provisions of the legislation on protected natural areas.

In the event that objects of historical, scientific, artistic or other cultural value are discovered during the use of subsoil, subsoil users are obliged to suspend work on the relevant subsoil area and notify the Subsoil Use Center and local executive authorities of this in writing or by e-mail.

Within sixty days after receiving the notification provided for in Part Six of this Article, local executive authorities and the Ministry of Culture of the Republic of Uzbekistan may declare the need to reserve the site for archaeological research. If they fail to make such a declaration within sixty days, the subsoil user may resume subsoil use activities in the affected subsoil site. If local executive authorities and relevant authorities responsible for the protection and use of cultural heritage sites fail to extract or ensure the safety of the discovered objects within sixty days, depending on the prevailing circumstances, the subsoil user may extract, ensure the safety and storage of these objects on behalf of the state and at the expense of the state.

Article 36. General requirements for the implementation of activities in the field of subsoil use

All activities in the field of subsoil use must be carried out in accordance with applicable good industry practice and must be aimed at ensuring:

1) conservation of subsoil resources, which is achieved through the use of appropriate methods and processes to maximize the extraction and recovery of minerals in a technically and economically sustainable manner and to minimize losses;

2) compliance with safety precautions, which involves the use of methods and processes that promote compliance with labor protection and the prevention of accidents and incidents, and also lead to a reduction in the risk to personnel, facilities and existing infrastructure, as well as the local population and the public, to a practically reasonable low level;

3) environmental protection, which requires the adoption of methods and processes that lead to minimal negative impact of subsoil use activities on the environment.

At the request of the Subsoil Use Centre, the subsoil user shall demonstrate that a particular practice, procedure or specification complies with applicable good industry practice by:

1) providing evidence that the adopted practice, procedure or specification is consistent with or more stringent than a standard adopted by an internationally recognized organization and is recognized by the Subsoil Use Center as the applicable standard;

2) providing evidence that the adopted practice, procedure or specification is reliable, safe, effective and necessary.

Article 37. Provision of land plots of the surface of a cadastral square to a subsoil user

If necessary, for the purpose of extracting minerals, hydrocarbons, underground storage, land plots whose surface corresponds to cadastral squares may be seized (with compensation for damage caused) for public needs, in the manner prescribed by legislative acts.

After the seizure (with compensation for damage caused) of a land plot for public needs and state registration of this land plot as state property, the land plot is transferred to another category of the land fund in the manner established by legislative acts.

Land plots of the surface of the cadastral square included in the cadastre of the state subsoil fund are provided to the Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan upon their requests for permanent use.

In the event of the seizure of land plots for public needs for the purpose of using subsoil resources, local executive authorities, in the manner established by legislative acts, agree on the amount and terms of payment of compensation with the landowner, land user or owner of the seized land plot for the purpose of using subsoil resources.

The compensation payment is reimbursed from centralized funds for compensation of losses to individuals and legal entities in connection with the seizure of their land plots for public needs.

The Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan reflect the amount of compensation and the requirement for its payment in the permit, and also include them in the documentation of the electronic auction, tender.

Land plots transferred for permanent use to the Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan are not subject to land tax until they are leased to a subsoil user.

The issuance of a permit for the right to extract solid minerals and hydrocarbons, as well as underground storage, is carried out only after the provision of the relevant land plot to the Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan on the right of permanent use.

Simultaneously with the issuance of a permit for the extraction of solid minerals and the extraction of hydrocarbons, as well as for underground storage, a land lease agreement is concluded between the Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan and the subsoil user, which is an integral part of the terms of use of the subsoil plot attached to the permit.

A lease agreement or a right of limited use of a land plot (easement) shall terminate upon the expiration of the term of the permit associated with it.

Costs associated with the seizure of land plots for public needs for the purpose of subsoil use, within three days from the date of issuance of the permit, are subject to reimbursement by the subsoil user to the Centralized Fund for Compensation of Losses to Individuals and Legal Entities in Connection with the Seizure of Land Plots from Them for Public Needs, created under the Cabinet of Ministers of the Republic of Uzbekistan.

For the leased land plot and the activities carried out by the subsoil user, taxes, fees and charges stipulated by legislative acts are paid.

Geological exploration of subsoil in open areas is carried out on the basis of decisions of local executive authorities without seizure of land plots provided in accordance with land legislation, after issuance of the relevant permit for geological exploration of subsoil. On land plots of the surface of the cadastral square with the user (owner) of the land plot, the right of limited use (easement) for geological exploration of subsoil may be established.

Chapter 5. Geological study of solid minerals

Article 38. Reconnaissance work for solid minerals

Any authorized person may conduct reconnaissance work for solid minerals without a permit on any cadastral square, with the exception of land plots allocated for defense needs, provided that such person notifies the Subsoil Use Center and registers its name and address, and provides a description and location of the land plot on which it proposes to conduct reconnaissance work.

It is prohibited to disturb the integrity of the subsoil during the course of reconnaissance work for solid minerals, and any person proposing to carry out reconnaissance work must obtain permission to enter the land from the landowner, land user or land owner, if necessary.

Article 39. Application for a permit for geological exploration of solid minerals

Permission for geological exploration of solid minerals is issued by the Subsoil Use Center by reviewing an application on a first-come, first-served basis for open cadastral squares.

Any authorized person has the right to submit an application to the Subsoil Use Center for the issuance of a permit to conduct geological exploration of solid minerals on a first-come, first-served basis for the following maximum number of open cadastral squares:

1) for energy minerals - 2,100 cadastral squares;

2) for ore and non-metallic minerals - 1,575 cadastral squares;

3) for precious and semi-precious stones - 525 cadastral squares;

4) for construction minerals and fillers - 105 cadastral squares.

All cadastral squares specified in the issued permit must be adjacent.

To obtain a permit for geological exploration of solid minerals on a first-come, first-served basis, the applicant submits an application to the Subsoil Use Center via electronic platforms, along with the following:

1) the full name of the applicant in accordance with the state registration certificate;

2) information certifying that the applicant is an authorized person;

3) detailed information about the requested open cadastral squares, including maps of the appropriate scale indicating their location and coordinates;

4) a document confirming that the applicant does not violate the limit of the total number of cadastral squares subject to submission for the issuance of a permit;

5) letters of commitment not to commence any mining activities until the necessary environmental assessment has been carried out and a positive conclusion has been received from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan;

6) other information required in accordance with legislative acts.

Applications are considered by the Subsoil Use Center in accordance with the established procedure.

The fee for consideration of applications for issuance of a permit for geological exploration of solid minerals is determined by legislative acts. The fee is non-refundable.

After receiving the application, the Subsoil Use Center registers the application in the register of applications of the state subsoil fund cadastre, indicating the date and time of receipt of the application, and issues the applicant a document confirming the submission of the application.

The Subsoil Use Center confirms the completeness of the application.

In the event that errors or deficiencies are discovered in the documents submitted with the application, the Subsoil Use Center will notify the applicant of this.

The applicant shall correct the identified errors and deficiencies within ten working days from the date specified in the notification and resubmit the application. If the errors and deficiencies are not corrected within the specified period, the Subsoil Use Center shall refuse to issue a permit.

Article 40. Additional methods of issuing permits for geological exploration of solid minerals

In cases where the Ministry of Mining and Geology of the Republic of Uzbekistan has determined the need for bidding by holding an auction, permits for geological exploration of solid minerals may be issued by holding an auction.

In certain cases, permits for geological exploration of solid minerals may be issued in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan.

In such cases, the corresponding cadastral squares are reserved by the Subsoil Use Center for holding an auction.

Auctions for issuing permits for geological exploration of solid minerals are carried out by means of bidding on an electronic trading platform that excludes outside interference, in accordance with the law.

In order to obtain the right to participate in the auction, auction participants must provide the information stipulated by Article 39 of this Law. With respect to certain particularly large and important minerals or mineral deposits, the Subsoil Use Center may establish additional requirements for participation in the auction, for example, a requirement to provide evidence of the financial and technical feasibility of implementing the proposed work program.

The starting price for the sale of the right to use subsoil areas for geological exploration of solid minerals at auctions is established by legislative acts depending on the type of mineral.

The protocol on determining the winner of the auction is the basis for issuing the winner a permit for geological exploration of minerals in the relevant cadastral squares.

The proceeds from the auction are distributed in accordance with the procedure established by legislative acts.

In addition to compliance with all requirements of this Law, permits for geological exploration of solid minerals issued on the basis of acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan may be subject to additional conditions and fees, which are established by an agreement concluded between the Cabinet of Ministers of the Republic of Uzbekistan and the subsoil user.

Article 41. Registration of a permit for geological exploration of solid minerals

The period for consideration of the submitted application shall not exceed twenty working days from the date of receipt of the completed application in accordance with Article 39 of this Law. Within three working days after the expiration of the period established for consideration of the submitted application or completion of the auction process, depending on the applicable case, the Subsoil Use Center shall issue a permit for geological exploration of solid minerals to the eligible person who first submitted a properly completed application or to the winner of the auction, respectively.

The refusal of the Subsoil Use Center to issue a permit for geological exploration of solid minerals must be justified and comply with the provisions of this Law and legislative acts.

When issuing a permit for geological exploration of solid minerals, a corresponding entry is made in the register of permits of the state subsoil fund cadastre.

Article 42. Validity period of the permit for geological exploration of solid minerals

A permit for geological exploration of solid minerals is issued for a period of:

1) for the main types of minerals - up to five years;

2) for non-metallic minerals - up to two years.

The validity period of a permit for geological exploration of the main solid minerals may be extended at the request of the subsoil user twice for four years.

The validity period of a permit for geological exploration of non-metallic minerals may be extended twice for two years in each case in accordance with the procedure established by Article 110 of this Law.

When extending the validity of a permit for geological exploration of solid minerals, the number of cadastral squares included in the permit is reduced by fifty percent.

Article 43. Carrying out work on geological study of solid minerals

Before starting any mining activity, the subsoil user shall conduct the necessary environmental assessment and obtain all necessary approvals in the field of environmental protection and safety, including a positive conclusion from the State Environmental Assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan. The State Environmental Assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan, depending on the applicable case, provide such approvals to the subsoil user, and their copies are sent directly to the Subsoil Use Center within five days of receiving their approval.

Within one hundred and eighty days from the date of issuance of a permit for geological exploration of the main types of solid minerals and within one hundred and twenty days from the date of issuance of a permit for geological exploration of non-metallic minerals, the subsoil user is obliged to submit to the Subsoil Use Center a developed geological exploration project for the entire period of validity of the permit, including, if necessary, a plan for eliminating the consequences of subsoil use.

Permits for geological exploration of solid minerals issued following an auction shall be automatically cancelled if a project for geological exploration of the main minerals has not been submitted within one hundred and eighty days, and for non-metallic minerals - one hundred and twenty days, from the date of issue of the permit.

The geological survey project includes detailed information on the types of minerals to be surveyed, methods and means of conducting the geological survey, approximate volumes of work and a work plan for the period of validity of the permit, as well as evidence of financial and technical capabilities for implementing the proposed work program. The format and special requirements for the geological survey project are provided for in legislative acts.

The geological survey project submitted by the subsoil user is subject to approval by the Subsoil Use Center before the subsoil user begins conducting the geological survey. The Subsoil Use Center shall review the geological survey project within twenty working days. Refusal to approve the project must be substantiated. The geological survey project may be rejected only in cases where it does not comply with the provisions of this Law, environmental legislation or other applicable legislative acts. In cases where the geological survey project has not been approved, the subsoil user has the right to re-submit a revised version, taking into account the comments of the Subsoil Use Center.

Work performed in accordance with a permit for geological exploration of solid minerals shall be performed in accordance with the approved geological exploration project developed by the subsoil user. Except in emergency situations, it is prohibited to perform geological exploration of solid minerals not provided for in the geological exploration project.

In the event of a change in the types, methods and (or) means of the planned work, as well as the volume and timing of the work, the subsoil user shall make appropriate changes to the project for the geological study of solid minerals.

If the changes provided for in part seven of this article require additional approval and examination, the revised project for the geological study of solid minerals shall be submitted to the Subsoil Use Center for review, in the manner prescribed by part five of this article.

If the changes provided for in part seven of this article require any additional environmental assessment, such changes will not be implemented until such environmental assessment is completed and a positive conclusion is issued by the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

All geological exploration work carried out and the results obtained are subject to documentation in accordance with regulatory documents approved by the Ministry of Mining and Geology of the Republic of Uzbekistan.

During the period of geological exploration, the subsoil user shall not have the right to erect permanent capital structures on the site corresponding to the land plot of the surface of the cadastral square, or to place mining waste objects on the subsoil site, in accordance with Article 46 of this Law.

Conducting hydrogeological studies during geological exploration of a subsoil site is mandatory. When assessing the resources of the identified mineralization, the subsoil user must determine its hydrogeological characteristics with a description of the physical and chemical properties of groundwater.

If geological exploration is supposed to be carried out within the water protection zones of surface water bodies, then the project for geological exploration and (or) pilot industrial production is also agreed upon with the relevant territorial divisions of the Ministry of Water Resources of the Republic of Uzbekistan and the Ministry of Emergency Situations of the Republic of Uzbekistan.

In the event that, during geological exploration, a mineral deposit is discovered on a subsoil site that is not specified in the permit for geological exploration, the subsoil user is obliged to notify the Subsoil Use Center about this and suspend actions that may create obstacles to the exploration and extraction of the discovered minerals until the discovered minerals are included in the permit for geological exploration. At the request of the subsoil user, this additional type of mineral is included in the permit for geological exploration, appropriate changes are made to the geological exploration project, and the updated project is submitted to the Subsoil Use Center in accordance with Article 47 of this Law.

Article 44. Annual minimum expenses for geological exploration of solid minerals

A subsoil user who has a permit for geological exploration of solid minerals is obliged to comply with the requirements for annual minimum expenses for geological exploration of subsoil established by this article.

Annual minimum expenses for a subsoil user for cadastral squares within the framework of permits for geological exploration of solid minerals are established by law. Calculation of annual minimum expenses for geological exploration is made on the basis of the basic calculation value established in the territory of the Republic of Uzbekistan and valid on January 1 of the reporting year.

If the first or last year of the validity period of a permit for geological exploration of the subsoil is incomplete, then the annual minimum expenses are calculated proportionally for each full month of the validity period of the permit in the relevant year.

In the event of termination of the permit for geological study of the cadastral square during the year, the annual minimum expenses are calculated proportionally for each full month of the permit's validity in the specified year. Eligible expenses and other expenses incurred by the subsoil user that are not subject to inclusion in the annual minimum expenses are determined by legislative acts. The calculation of the minimum expenses for geological study of the subsoil is made only in relation to expenses incurred within the framework of the relevant permit.

In case of violation of obligations for annual minimum expenses stipulated by this article, the subsoil user is obliged to make the missing expenses and submit a report on this to the Subsoil Use Center no later than two months following the reporting year. In this case, expenses made by the subsoil user in accordance with this article are not taken into account in the expenses of the current year and are considered reflected in the report for the reporting year.

Article 45. Rights of subsoil users who have permission for geological exploration of solid minerals

A subsoil user who has a permit for geological exploration of solid minerals has the right to conduct geological exploration of minerals specified in the subsoil geological exploration project.

Subsoil users who have permission for geological exploration of solid minerals have the following exclusive rights:

1) conduct geological exploration in the subsoil area specified in the permit;

2) construct temporary industrial and social facilities necessary for the performance of work within the allocated land plots of the surface of the cadastral square, as well as use public facilities and communications on a contractual basis;

3) carry out pilot production as provided for in Article 46 of this Law;

4) request and receive a permit for the extraction of solid minerals at any time during the validity period of the permit for geological exploration, subject to compliance with the requirements of Chapter 6 of this Law;

5) carry out other work necessary or accompanying the geological study of solid minerals.

Subsoil users who have permission for geological exploration of solid minerals may also have other rights in accordance with this Law.

Article 46. Experimental (trial) and pilot-industrial extraction of minerals during the period of geological exploration of the subsoil

During the period of geological exploration of a subsoil area, a subsoil user has the right to carry out pilot (test) and pilot-industrial extraction of minerals in the event of confirmation of their presence, with the aim of developing or improving the technology of enrichment and processing of minerals, assessing their quality and obtaining additional data necessary for constructing a geological model of a mineral deposit, and selecting rational methods and ways of their development, as well as the use of man-made mineral formations.

Experimental (test) mining of minerals is carried out in the volume justified in the geological study project, in compliance with:

1) industrial safety standards and rules;

2) legislation in the field of environmental protection, including conditions for preserving the fertile soil layer, eliminating the consequences of subsoil use, as well as subsequent reclamation of disturbed lands, as provided for in Chapter 15 of this Law.

Pilot-industrial extraction of minerals is carried out after notification of the Subsoil Use Center and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

Minerals extracted during pilot production are the property of the subsoil user. The sale or transfer of such minerals is prohibited until the subsoil user receives permission to extract solid minerals for this project.

The results of experimental (trial) and (or) pilot industrial extraction and research of minerals must be reflected in the report on the results of the geological study of the subsoil area.

A subsoil user has the right to construct capital structures related to pilot industrial production on a land plot in relation to which he has received rights to the land plot in accordance with Article 37 of this Law.

Article 47. Obligations of subsoil users holding permits for geological exploration of solid minerals

During the validity period of the permit for geological exploration of solid minerals, subsoil users are obliged to:

1) commence mining activities within thirty days from the date of approval of the geological survey project and receipt of a positive conclusion from the environmental assessment specified in the first part of Article 43 of this Law;

2) ensure that geological exploration work complies with all applicable rules and regulations and good mining practice;

3) ensure that the geological survey work complies with the current geological survey project;

4) to limit all geological exploration activities and any other lawful use of the subsoil area to measures necessary for the implementation of mining activities, in order to ensure that all such activities do not lead to a violation of public or private interests that can be avoided by reasonable means;

5) comply with the annual minimum expenses specified in Article 44 of this Law;

6) ensure the safety and correct marking of natural and artificial carriers, store geological, mine surveying and other documents developed in the process of geological study;

7) submit reports required in accordance with Article 48 of this Law;

8) pay the annual payments specified in Article 161 of this Law;

9) ensure the conservation of geological mine workings and boreholes that can be used for the development of mineral deposits and other purposes, and also ensure the liquidation of mine workings and boreholes that are not subject to use, in accordance with the procedure established by law;

10) develop and finance a plan to eliminate the consequences of subsoil use in accordance with Chapter 15 of this Law;

11) implement approved training programs and comply with standards for labor protection, safety engineering and the creation of favorable working conditions for employees, as well as measures to ensure preparedness and eliminate the consequences of accidents and emergency situations in accordance with Chapter 14 of this Law and current legislation;

12) comply with the procedure for the liquidation and closure of mining facilities and underground structures not related to the extraction of minerals;

13) comply with the procedure for conducting periodic and random inspections and (or) audits;

14) develop and ensure compliance with the rules of conduct for combating corruption in accordance with international treaties ratified by the Republic of Uzbekistan;

15) comply with the standards of extractive industries transparency initiatives (EITI) in force in the Republic of Uzbekistan;

16) promptly and accurately declare and pay all customs duties, payments, fees and taxes that are not the subject of the dispute;

17) cooperate with all relevant competent authorities and law enforcement agencies in order to comply with the provisions of this Law and any other applicable legislation.

Subsoil users who have permits for geological exploration of solid minerals may also bear other obligations in accordance with legislative acts.

Article 48. Reporting during geological exploration of solid minerals

The subsoil user for geological exploration of solid minerals is obliged to submit annually to the Subsoil Use Center a report on the fulfillment of obligations stipulated in the permit for geological exploration of subsoil for the previous calendar year no later than March 1 of the following year. Reports for an incomplete calendar year are submitted for the actual period, no later than two months after the end of such period.

After the permit expires, the subsoil user is obliged to submit to the Subsoil Use Center a final report on the results of the geological survey at the subsoil site no later than three months from the date of the permit’s expiration.

The final report on the results of geological study includes information on potential mineral deposits identified as a result of geological study, including geological details based on primary geological information, and also contains data on the status and results of scientific research, testing and geological study in the field of geology, drilling, sampling and testing of soil, rocks, groundwater, samples of minerals and other geological materials. The form of the final report on the results of geological study and the requirements for it are determined by legislative acts.

The final report on the results of geological exploration of solid minerals must include information in accordance with the requirements of the Committee on Mineral Reserves International Reporting Standards (CRIRSCO), taking into account the provisions provided for in paragraphs eleven and twelve of Part One of Article 169 of this Law.

The final report on the results of the geological study of the subsoil is submitted to the State Commission on Mineral Reserves for the purpose of conducting a state examination of geological materials and approving mineral reserves.

If the final report on the results of the geological study of the subsoil does not contain information about the identified deposit with an estimate of mineral reserves, then it is submitted only to the Subsoil Use Center for generalization and systematization.

Information on geological survey expenses and the share of local content specified in the geological survey report is subject to confirmation by the auditor in accordance with the requirements of the Law of the Republic of Uzbekistan "On Auditing Activity". Such information is also considered confirmed by the auditor if it is separately presented (displayed) in the financial statements that have undergone an audit review.

Article 49. Examination of geological materials and approval of mineral reserves by the state

During the validity period of the permit for geological exploration of solid minerals, the subsoil user has the right to apply to the Ministry of Mining and Geology of the Republic of Uzbekistan with an application for approval of reserves of non-metallic minerals in the subsoil area.

State examination of geological materials and approval of mineral reserves by the state are carried out by the State Commission on Mineral Reserves. The decision on the industrial significance of explored mineral reserves is the basis for their inclusion on the state balance sheet.

In order to conduct state examination of geological materials of deposits of non-metallic minerals and to approve their reserves, the State Commission on Mineral Reserves organizes territorial commissions on mineral reserves at local level.

The State Commission on Mineral Reserves has the right, but is not obliged, to involve a competent person recognized in accordance with applicable national or international standards.

State examination of geological materials and approval of mineral reserves are carried out at the expense of the subsoil user requesting such approval.

The requirements for geological materials submitted for state examination are determined by the State Commission on Mineral Reserves, taking into account the complexity of the geological structure of the subsoil area and their quantity.

A competent person in accordance with international standards for reporting on mineral reserves, engaged by a subsoil user, may also prepare public reports on the results of geological exploration, mineral reserves (except for non-metallic minerals). In this case, this competent person is also obliged to prepare reports in accordance with the requirements of the State Commission on Mineral Reserves for conducting a state examination of geological materials and approving mineral reserves.

The amount of the fee charged for conducting a state examination of geological materials is approved by the Subsoil Use Center in agreement with the State Commission on Mineral Reserves.

Funds for conducting state examinations are used to pay for the services of experts involved and to cover the costs of preparing materials for consideration by the State Commission on Mineral Reserves.

Payment for state examination of geological materials is transferred to the bank account of the Subsoil Use Center.

Chapter 6. Extraction of solid minerals

Article 50. Application for obtaining a permit for the extraction of solid minerals

The subsoil user has the exclusive right to obtain a permit for the extraction of solid minerals on adjacent cadastral squares specified in the permit for geological exploration in accordance with Article 108 of this Law until the expiration of the permit, provided that at least one of such cadastral squares contains a deposit of solid minerals and the use of such a deposit of solid minerals is necessary for commercial purposes.

To obtain a permit for the extraction of solid minerals, a subsoil user submits an application to the Subsoil Use Center indicating the following information:

1) the full name of the applicant in accordance with the state registration certificate;

2) a document certifying that the applicant is an authorized person;

3) detailed information about the requested cadastral squares, including a map of the appropriate scale indicating their location and coordinates;

4) final report on geological survey;

5) a project for the development of a deposit or a feasibility study;

6) evidence of the financial, professional and technical capabilities of the applicant to carry out the proposed mining activity in accordance with the deposit development project or feasibility study;

7) a positive conclusion from the state environmental assessment.

Requirements regarding documents submitted with the application are established in legislative acts.

If the validity period of a permit for geological exploration of solid minerals expires while the subsoil user is waiting for a positive conclusion from any environmental assessment required to submit an application for a permit for the extraction of solid minerals, then the permit for geological exploration shall continue to be valid until a positive conclusion from the environmental assessment or refusal is received.

The amount of the fee for consideration of an application for a permit for the extraction of solid minerals is determined by legislative acts. The fee is non-refundable.

Article 51. Additional methods of obtaining a permit for the extraction of solid minerals

Permits for the extraction of solid minerals may be issued by holding an auction or tender for deposits determined by the Subsoil Use Center.

In special cases related to the development of the country, a permit for the extraction of solid minerals may be issued in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan.

The deposits specified in parts one and two of this article include:

1) deposits explored as a result of geological exploration work within the framework of a permit for geological exploration, which are entered into the state balance after the expiration of the permit (exclusive right to obtain a permit for the extraction of minerals);

2) mineral deposits explored using budgetary funds within the framework of state programs for the development of the mineral resource base.

In cases provided for in the first part of this article, cadastral squares necessary for the extraction of solid minerals are reserved by the Subsoil Use Center.

The procedure for conducting auctions and tenders is determined by legislative acts.

The main objectives of the tender process are:

1) organization of effective interaction between ministries, departments and economic management bodies in developing conditions for the use of subsoil areas;

2) agreement on the initial conditions of the tender for the provision of subsoil areas, developed on the basis of existing geological data, geological survey reports and other relevant information;

3) organizing the examination of the submitted project for the development of a deposit or a preliminary feasibility study or a feasibility study of investment projects and assessing their compliance with the legislation of the Republic of Uzbekistan, as well as the established conditions for the use of subsoil areas;

4) submission of a preferred tender application and a conclusion on the advisability of issuing a permit to the Cabinet of Ministers of the Republic of Uzbekistan for approval.

Participants in an auction or tender must submit the information specified in Article 50 of this Law, with the exception of a positive conclusion of the state environmental review, and a participant has the right to submit a preliminary feasibility study instead of a feasibility study. A participant in an auction or tender process must provide an undertaking not to commence mining activities until any necessary environmental review has been conducted and a positive conclusion has been received from the state environmental review and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The protocol on determining the winner of an auction or tender is the basis for issuing the winner a permit for the extraction of minerals in the relevant cadastral squares.

The winner of an auction or tender, a subsoil user who has received a permit based on an act of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan, within one year from the date of issuance of the permit, must submit to the Subsoil Use Center a project for the development of the deposit or a feasibility study, a positive conclusion of the state environmental review. The submitted documents are considered in accordance with Article 53 of this Law.

Permits for the extraction of minerals issued on the basis of acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan must comply with all the requirements of this Law; additional conditions and fees may also be applied to them, according to an agreement concluded between the Cabinet of Ministers of the Republic of Uzbekistan and the subsoil user.

Funds from an auction or tender are distributed in the manner determined by the Cabinet of Ministers of the Republic of Uzbekistan.

Article 52. Registration of a permit for the extraction of solid minerals

The Subsoil Use Center, within ten working days from the date of receipt of an application for a permit for the extraction of solid minerals provided by a subsoil user for geological study of solid minerals, or receipt of a final project for the development of a deposit or a feasibility study after the completion of an auction or tender process, or in connection with a permit issued in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan, depending on the applicable case, shall consider the application and conduct a preliminary review to determine its completeness.

The applicant is notified of any deficiencies in the application after the preliminary review stage. The Subsoil Use Center has the right to allow the applicant to correct minor deficiencies or to reject the application. If the application is rejected, the applicant has the right to re-submit a new application.

The initial review of the application is carried out by the Subsoil Use Center within twenty working days from the date of receipt of the application.

When considering an application, the Subsoil Use Center shall consider the financial, professional and technical capabilities and abilities of the applicant to carry out the proposed activity for the extraction of solid minerals, as well as the technical and operational aspects of the project for the development of the deposit or the feasibility study for completeness, feasibility and compliance of the documents submitted in accordance with Articles 50 and 53 of this Law.

In cases where deficiencies are discovered in the proposed field development project or feasibility study, the Subsoil Use Center may require the applicant to correct the deficiencies within a reasonable time not exceeding ninety days. Upon receipt of such a request, the applicant may withdraw its application, amend it, or provide a written explanation of the inadvisability of making changes. If the applicant amends its application or provides a written explanation of the inadvisability of making changes, the Subsoil Use Center shall consider such response and provide its response within fifteen working days. In addition, the applicant may request a hearing to present its position, and the Subsoil Use Center has the right to require the applicant to appear in person to answer questions regarding the justification. In such a case, the Subsoil Use Center shall convene such a hearing to consider the applicant's arguments within fifteen working days. The Subsoil Use Center may not raise new issues that may have been known at the time and that were not included in its initial consideration under the process described in this part. The process set out in this section is repeated several times until the Subsoil Use Center is ready to approve the permit or the applicant finally withdraws his application.

Upon completion of the process set out in parts one through five of this article, the Subsoil Use Center shall accept or reject the deposit development project or feasibility study.

In cases where the project for the development of a deposit or a feasibility study have been accepted and the application complies with all other requirements of this Law, the Subsoil Use Center shall issue a permit for the extraction of solid minerals. In cases where a change in the project for the development of a deposit or a feasibility study requires an additional environmental assessment or its revision, the permit shall not be issued until the environmental assessment has been completed and a positive conclusion has been received from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The Subsoil Use Center has the right to refuse to issue a permit for the extraction of minerals if the application does not meet the requirements established in Article 50 of this Law. The refusal must be substantiated. Refusal on grounds not provided for by this Law is not allowed. The Subsoil Use Center notifies the applicant of such refusal after the expiration of the review period.

When issuing a permit for the extraction of solid minerals, a corresponding entry is made in the register of permits of the state subsoil fund cadastre.

Article 53. Field development project and feasibility study

When reviewing a project for the development of a deposit or a feasibility study prior to issuing a permit for the extraction of solid minerals, the Subsoil Use Center shall review the technical and operational aspects of the justification. The Subsoil Use Center shall not be responsible for reviewing the financial aspects of the justification. The Subsoil Use Center may, on reasonable grounds, give priority to the following criteria:

1) compliance with the best available option for the extraction of solid minerals;

2) the use of sustainable, environmentally friendly technologies for mining activities;

3) prevention of damage to exploited and adjacent mineral deposits and other subsoil areas as a result of mining activities and conservation of mineral reserves located in the subsoil;

4) maximum receipt of total income and profit for the state;

5) ensuring maximum economic spillover from mining activities in the Republic of Uzbekistan.

During the extraction of solid minerals, the following are of priority importance:

1) technological schemes that ensure sustainable complex extraction of useful components;

2) accounting and control of the distribution of useful components at various stages of processing and the degree of their extraction from mineral deposits;

3) the safest possible use of extracted products and processing waste, as well as wastewater;

4) storage, accounting and preservation of temporarily unused products and production waste containing useful components.

Depending on the types and properties of minerals, methods of deposit development, types of processing technology and other factors, additional requirements for the development of deposits and processing of mineral raw materials may be provided.

Article 54. Validity period of a permit for the extraction of minerals

The validity period of a permit for the extraction of minerals may not exceed twenty-five years from the date of issue of the permit.

The validity period of a permit for the extraction of minerals may be extended multiple times upon application by the subsoil user for a period not exceeding the initial validity period of the permit, in the manner prescribed by Article 110 of this Law.

Article 55. Conducting mining activities

A subsoil user who has a permit for the extraction of solid minerals must, before starting any mining activity, undergo the necessary environmental assessment and obtain all relevant safety approvals, including a positive conclusion from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan. The subsoil user provides such approvals to the Subsoil Use Center within five days of their receipt.

Before starting any mining activity, a subsoil user who has received the right to extract solid minerals shall submit to the Subsoil Use Center a project for the development of the relevant mineral deposit, including a preliminary plan for the elimination of the consequences of subsoil use, which has received a positive conclusion from the state environmental review and has been agreed upon with the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan. If the project for the development of deposits was included in the preliminary feasibility study or the feasibility study submitted in accordance with Article 50 of this Law, then its repeated submission is not required.

The project for the development of a deposit must comply with the requirements of this Law.

The content of projects for the development of a deposit and (or) pilot production is determined by the subsoil user independently in accordance with the applicable legislation of the Republic of Uzbekistan, taking into account the details included in the preliminary feasibility study or feasibility study, as well as environmental and industrial safety requirements.

Except in emergency situations, mining activities are carried out in accordance with the approved current project for the development of the deposit prepared by the subsoil user.

Unless previously amended in accordance with Article 57 of this Law, a deposit development project for a project on the main types of minerals shall be valid for one year, and a deposit development project on non-metallic minerals shall be valid for two years from the date of its approval by the Subsoil Use Center. The Subsoil Use Center shall have the right to demand that a deposit development project cover a longer period than the term specified in this part, but it shall not exceed four years if the large scale, technical implementation and duration of the planned subsoil use activity require an increase in the terms of their implementation.

All work on the extraction of minerals is subject to documentation in accordance with Articles 59 and 61 of this Law.

In the event that a significant mineral deposit is discovered in a subsoil area during mining activities that is not specified in the permit for the extraction of solid minerals, the subsoil user must notify the Subsoil Use Center within ten days and amend its project for developing the deposit taking into account the discovered mineral deposit.

If mining activities are to be carried out within the water protection zones of surface water bodies, the project for the development of the deposit is also agreed upon with the relevant territorial divisions of the Ministry of Water Resources of the Republic of Uzbekistan.

Article 56. Annual minimum expenses for the extraction of solid minerals

The subsoil user, with the exception of projects on man-made mineral formations, is obliged to comply with the requirements for annual minimum expenses on the extraction of solid types of primary minerals, provided for by this article and legislative acts.

Annual minimum costs for the extraction of solid minerals are established in legislative acts for each type of mineral.

If the first or last year of the term of extraction of solid minerals is incomplete, the annual minimum costs are calculated proportionally for each full month of the extraction period in the specified year. In the event of termination of the permit for extraction of solid minerals in the cadastral square during any year, the annual minimum costs are calculated proportionally for each full month of the term of validity in the specified year.

Mining activities subject to inclusion, as well as activities not subject to inclusion in the annual minimum costs, are provided for in legislative acts. Calculation of annual minimum costs for the extraction of solid minerals is made only in relation to costs incurred on the cadastral squares specified in the permit.

The calculation of annual minimum expenses within the framework of a permit for the extraction of solid minerals is made on the basis of the basic calculation value established in the territory of the Republic of Uzbekistan and in effect on January 1 of the reporting year.

In case of violation of obligations on minimum production costs stipulated by this article, the subsoil user is obliged to make the missing expenses and submit a report on this to the Subsoil Use Center no later than two months following the reporting year. In this case, expenses made by the subsoil user in accordance with this article are not taken into account in the expenses of the current year and are considered to be reflected in the report for the reporting year.

Article 57. Amendments to the field development project

In the event of a change in the types, methods and (or) ways of planned work on the extraction of minerals, as well as the technologies, volumes and timing of work, a change in the composition of production facilities and infrastructure facilities, the subsoil user is obliged to make appropriate changes to the deposit development project and submit it to the Subsoil Use Center for approval.

Changes to mineral extraction projects require approval from the Subsoil Use Center in the following cases:

1) increasing the risks of carrying out mining operations provided for in the project;

2) if the planned changes in the extraction of minerals, which entail additional risks, are not provided for in the previously agreed project;

3) if the planned changes in the extraction of minerals, the implementation of which will lead to the environmental indicators specified in the project not being achieved;

4) if the planned changes in the extraction of minerals involve additional violations of the integrity of the land cover;

5) if changes are planned in the number and parameters of the main objects of the mining complex;

6) the presence of significant changes in planned costs;

7) the presence of significant changes in the obligations of the subsoil user.

The revised project for the development of the deposit shall be reviewed by the Subsoil Use Center within twenty working days after receiving the revised project.

The Subsoil Use Center shall review the field development project for completeness, feasibility and compliance with Article 53 of this Law. In the event that deficiencies are discovered in the changes made to the field development project, the Subsoil Use Center may require the applicant to eliminate such deficiencies within a reasonable time, in accordance with the procedure set out in Part Four of Article 52 of this Law. In cases where changes made to the current field development project require an additional environmental assessment or its revision, approval of such a project shall be carried out only after an environmental assessment has been carried out and a positive conclusion of the state environmental assessment has been issued.

Carrying out work on the amended field development project until it is approved by the Subsoil Use Center is prohibited.

After the review process is completed, the Subsoil Use Center must either accept or reject the revised field development project. Rejection of the revised field development project must be motivated. Rejection on grounds not provided for by this Law is not permitted.

Article 58. Rights of subsoil users who have a permit for the extraction of solid minerals

Subsoil users who have a permit for the extraction of solid minerals have the right to extract, process, store, transport, sell and (or) export solid minerals specified in the relevant permit.

A permit for the extraction of solid minerals grants the subsoil user, within the boundaries of the provided subsoil plots and land plots of the surface of the cadastral square specified in the permit and any necessary corresponding plots, the following exclusive rights:

1) conduct additional geological studies;

2) conduct additional studies to re-evaluate mineral reserves;

3) carry out mining activities in accordance with the current project for the development of the deposit;

4) carry out production of solid minerals;

5) carry out enrichment, processing and treatment of solid minerals for which a permit has been issued into commercial raw materials;

6) transport, store and sell extracted minerals;

7) subject to obtaining the relevant permits, approvals or consents, to place mining, processing (beneficiation), transport and other relevant facilities and man-made mineral formations, including:

a) carry out the construction of a mine, the erection of permanent structures and the installation of equipment necessary for the extraction, processing, storage and shipment of extracted minerals;

b) carry out the construction or installation of structures and facilities for mine personnel and their family members;

c) to carry out the construction of infrastructure for the delivery of extracted minerals from the mine to points of sale;

8) subject to any applicable permits or approvals, use:

(a) groundwater within a subsoil area for purposes related to the extraction of minerals, provided that there is sufficient flow for downstream users;

b) any natural hydroelectric resources within the subsoil area for the implementation of mining activities;

9) subject to compliance with the provisions provided for by this Law, obtain an extension of the permit to other solid minerals discovered in industrial quantities on the site specified in the permit;

10) to reasonable non-interference in the use and execution of the permit.

Subsoil users who have a permit for the extraction of solid minerals may also have other rights in accordance with the law.

Article 59. Obligations of subsoil users who have a permit for the extraction of solid minerals

During the validity period of the permit for the extraction of solid minerals, the subsoil user is obliged to:

1) commence mining activities within three years for the main types of solid minerals and one year for non-metallic minerals, from the date of issue of the permit;

2) ensure that all types of mining activities, including production technology, comply with all applicable standards and regulations, as well as good mining practice;

3) ensure that mining activities are substantially consistent with the current approved development project for the deposit;

4) submit to the Subsoil Use Center an updated project for the development of a deposit for the main types of minerals annually, and for non-metallic minerals - every two years;

5) to limit all forms of mining activities and any other lawful use of the subsoil area to measures necessary for the implementation of mining activities, in order to ensure that all such activities do not lead to a violation of public or private interests that can be avoided by reasonable means;

6) establish, implement and regularly update an appropriate management system designed to ensure systematic and continuous compliance with all requirements established by applicable legislation regarding mining activities and to monitor their implementation;

7) maintain reliable records of extracted minerals and industrial waste generated during the production process, including ensuring the maintenance of daily work logs and registers of production, product shipments, equipment deliveries, accidents and visitors to the facility;

8) provide timely reports on the extraction of minerals in accordance with Articles 61 and 62 of this Law;

9) implement the approved environmental management plan, taking into account its periodic review and updating, including monitoring and reporting;

10) take water protection measures, as well as comply with other requirements for the protection of water bodies established by legislation in relation to groundwater entering a mine working;

11) comply with environmental requirements when storing and disposing of production waste;

12) develop and finance a plan for the elimination of the consequences of subsoil use in accordance with Chapter 15 of this Law;

13) comply with environmental and sanitary-epidemiological requirements for the storage and disposal of uranium production waste and uranium processing products in accordance with Article 60 of this Law;

14) implement approved training programs and standards on labor protection, safety engineering and the creation of favorable working conditions for employees, as well as measures to ensure preparedness and eliminate the consequences of accidents and emergency situations in accordance with Article 136 of this Law and current legislation;

15) implement approved plans for infrastructure development, operation and maintenance in accordance with Article 159 of this Law;

16) comply with the implementation of periodic and random checks and (or) audits;

17) develop and ensure compliance with a code of conduct to combat corruption in accordance with international treaties ratified by the Republic of Uzbekistan;

18) comply with the standards of the Extractive Industries Transparency Initiative (EITI) in force in the Republic of Uzbekistan;

19) promptly and accurately declare and pay all taxes for the use of subsoil, land tax, customs duties and other taxes that are not the subject of the dispute;

20) cooperate with all relevant competent authorities and law enforcement officials in order to comply with the provisions of this Law and any other applicable legislation.

Before commencing any mining activity, a subsoil user for the extraction of solid minerals shall obtain and continually renew insurance policies for all types of mining activities and shall ensure that the limits, deductions and other terms of the relevant insurance coverage are commensurate with the terms that are generally applicable in the given industry, taking into account the nature and type of mining activity to be carried out.

A subsoil user who has received permission to extract the main types of solid minerals, except for projects for man-made mineral formations, is obliged to:

1) comply with the requirement for annual minimum expenses provided for in Article 56 of this Law;

2) implement the plan for the procurement of locally produced goods in accordance with Chapter 16 of this Law;

3) implement the plan for the recruitment, training and promotion of local personnel in accordance with Chapter 16 of this Law.

Subsoil users who have a permit for the extraction of solid minerals may also bear other obligations in accordance with the law.

Article 60. Special conditions for the use of a subsoil plot for the extraction of radioactive minerals

A subsoil user engaged in the extraction of radioactive minerals, including uranium, must comply with the additional obligations set out in this article.

Uranium mining activities must comply with the basic safety standards of the International Atomic Energy Agency (IAEA) on radiation protection and the regulatory legal acts of the Republic of Uzbekistan in the field of radiation safety.

A subsoil user engaged in the extraction of radioactive minerals, including uranium, is responsible for:

1) for ensuring radiation safety throughout the entire territory, including during the period of liquidation of the consequences of subsoil use and after the completion of the period of liquidation of the consequences of subsoil use, as well as for the restoration of the environment;

2) for ensuring nuclear safety and physical protection of any uranium production and waste disposal facility;

3) as a sender and (or) carrier for the transportation of radioactive material, including on public roads and by rail.

The subsoil user must have sufficient technical and financial resources to ensure compliance with all of its obligations within the framework of ensuring radiation safety.

Permitting documents for ensuring radiation safety, issued by the Committee for Industrial, Radiation and Nuclear Safety under the Cabinet of Ministers of the Republic of Uzbekistan, are required for all stages of the life cycle of activities related to uranium, including geological exploration, mining, ore processing and (or) production, facilities for handling radioactive waste from mining activities and transportation of radioactive materials.

The mine development project for a uranium mining project includes a radiation management plan for mining activities. The form and content of the radiation management plan are established in accordance with legislative acts.

The subsoil user is obliged to submit for consideration and approval by the Committee for Industrial, Radiation and Nuclear Safety under the Cabinet of Ministers of the Republic of Uzbekistan, the first preliminary radiation management plan within the framework of the procedure for issuing permits to ensure radiation safety. Any uranium mining activity, including construction, cannot be carried out without permits to ensure radiation safety.

When carrying out uranium mining activities, the subsoil user is obliged to ensure:

1) design of any uranium installations in accordance with the general principles established by the Law of the Republic of Uzbekistan “On Radiation Safety”;

2) adequate protection of facilities, including any facility handling radioactive waste from the mining industry, from threats of unauthorized removal of uranium oxide concentrates and sabotage;

3) maintaining the accuracy, timeliness, completeness and reliability of information on the location, quantity and characteristics of uranium at all stages of the process;

4) compliance with all reporting requirements in accordance with the basic safety standards for radiation protection;

5) conducting an audit of its personnel and facilities to verify compliance with these procedures and measures;

6) appointment at each facility of a specialist with appropriate qualifications and experience who is responsible for managing the measures for accounting and control of uranium oxide concentrates;

7) notification of the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan and the Committee for Industrial, Radiation and Nuclear Safety under the Cabinet of Ministers of the Republic of Uzbekistan within two hours after detection of any missing volumes of uranium oxide concentrate;

8) storing all accounting and operational records, reports and source documents related to the accounting and control of uranium oxide concentrates for at least five years from the date of their generation or the date when all uranium oxide concentrates were removed from the production facility.

Republican executive authorities and local executive authorities are obliged to facilitate the safe operation of subsoil use facilities for the extraction and (or) processing of uranium ore.

Article 61. Reporting on the extraction of solid minerals

All mining activities are documented in mining reports.

The annual mining report contains:

1) a description of all types of mining operations, including detailed information on:

a) construction or modification of mining infrastructure facilities;

b) mining operations, including removed waste and methods of its disposal;

c) shipping and logistics;

d) accidents and incidents in the field of safety;

2) description of the extracted minerals (including losses during extraction);

3) a geological report on any work carried out during geological exploration;

4) information on sales and expenses;

5) copies of the annual financial statements of the subsoil user;

6) for projects on the main types of minerals, with the exception of man-made mineral formations - a report on annual minimum expenses in accordance with Article 56 of this Law and on the implementation of plans for the purchase of locally produced goods, for the hiring, training and promotion of local personnel in accordance with Chapter 16 of this Law;

7) other information provided for by legislative acts.

The form of the annual report is determined by legislative acts.

The annual report on mineral extraction shall be submitted to the Subsoil Use Center no later than March 31 of the following year. Reports for an incomplete calendar year shall be submitted for the actual period no later than two months after the end of the specified period.

Article 62. Final report on the extraction of solid minerals

A subsoil user who has carried out the extraction of solid minerals is obliged to submit to the Subsoil Use Center, within three months after the date of termination of the permit for the extraction of solid minerals, a final report on the extraction of solid minerals for the entire period of validity of the permit.

The Final Mineral Production Report contains a summary of the annual solid mineral production reports and summarizes:

1) the results of mining operations, including information on the tonnage, volume, composition, content and cost of extracted and processed mineral raw materials;

2) information on the tonnage and volume of waste removed and the method of its disposal;

3) details of expenses, costs and employees hired;

4) calculations of any remaining reserves of minerals and resources located in the subsoil area, which are reflected in plans and sections at the appropriate scale;

5) health and safety and environmental protection issues associated with mineral extraction and processing activities carried out in accordance with the permit, including the type and number of any serious accidents that have occurred;

6) applicable measures for land reclamation and the final status of restoration of the subsoil area;

7) data on total production costs incurred;

8) other information provided for by legislative acts.

The form of the final report is determined by legislative acts.

Chapter 7. Permit for hydrocarbon reconnaissance

Article 63. Application for permission to conduct hydrocarbon reconnaissance

Any authorized person may apply to the Subsoil Use Center for the issuance of a hydrocarbon reconnaissance permit on a first-come, first-served basis. The size of the proposed land plot included in the hydrocarbon reconnaissance permit must not exceed 10,500 cadastral squares.

Applications are considered by the Subsoil Use Center in agreement and coordination with other government agencies in accordance with the procedure established by law.

The application shall contain the following information:

1) the full name of the applicant in accordance with the state registration certificate;

2) information certifying that the applicant is an authorized person;

3) details of the requested cadastral squares, including a map of the appropriate scale indicating their location and coordinates;

4) reconnaissance work project;

5) documents certifying the applicant's previous experience in hydrocarbon reconnaissance work that is comparable to the work envisaged for implementation in accordance with the hydrocarbon reconnaissance permit, including a list of countries in which he has carried out hydrocarbon reconnaissance work over the past five years;

6) confirmation of the financial, professional and technical abilities and capabilities of the applicant;

7) a positive conclusion from the state environmental assessment;

8) any other information required in accordance with the requirements of legislative acts, as well as a document confirming payment of the fee for consideration of the application.

The fee for reviewing an application for a permit for hydrocarbon reconnaissance is determined by legislative acts. The fee is non-refundable.

Upon receipt of an application, the Subsoil Use Center registers it in the register of applications of the state subsoil fund cadastre and notifies the applicant of the submission of the application.

Article 64. Registration of a permit for hydrocarbon reconnaissance

The period for consideration of the submitted application for issuance of a permit for hydrocarbon reconnaissance shall not exceed twenty working days from the date of receipt of the completed application. Within three working days after the expiration of the period established for consideration of the submitted application, the Subsoil Use Center issues a permit for hydrocarbon reconnaissance to the authorized person who was the first to submit a complete application.

The refusal of the Subsoil Use Center to issue a permit for hydrocarbon reconnaissance must be justified and must comply with the provisions of this Law and other legislative acts. At the same time, the Subsoil Use Center has the right to limit the scope of work provided for within the framework of the permit for hydrocarbon reconnaissance only with respect to certain types of reconnaissance work.

When issuing a permit for hydrocarbon reconnaissance, a corresponding entry is made in the register of permits of the state subsoil fund cadastre.

Article 65. Validity period of the permit for hydrocarbon reconnaissance

A permit for hydrocarbon reconnaissance, unless it has been refused or revoked or its validity period has not been extended in accordance with the requirements of this Law, shall be issued for a period of up to three years from the date of registration of the permit.

The validity period of a hydrocarbon reconnaissance permit may be extended at the request of the subsoil user for a period of up to one year. Only one extension of the validity period of a hydrocarbon reconnaissance permit is permitted in accordance with the provisions provided for in Article 110 of this Law.

Article 66. Annual minimum expenditures on hydrocarbon reconnaissance

A subsoil user who has received permission for hydrocarbon reconnaissance is obliged to comply with the requirements for annual minimum expenses for hydrocarbon reconnaissance established by this article and legislation.

Annual minimum expenses for a subsoil user for hydrocarbon reconnaissance are established by legislative acts. Calculation of annual minimum expenses for hydrocarbon reconnaissance is made on the basis of the basic calculation value established in the territory of the Republic of Uzbekistan and valid on January 1 of the reporting year.

If the first or last year of the validity period of a hydrocarbon reconnaissance permit is incomplete, the annual minimum expenditure shall be calculated proportionally for each full month of the validity period of the permit in the relevant year.

In the event of termination of a hydrocarbon reconnaissance permit during any year, the annual minimum expenditure shall be calculated pro rata for each full month of the permit's validity in the relevant year.

Eligible expenses and other expenses incurred by the subsoil user that are not subject to inclusion in the annual minimum expenses are determined by legislative acts. The calculation of minimum expenses for hydrocarbon reconnaissance is made only in relation to expenses incurred within the framework of the relevant permit.

Article 67. Rights of subsoil users who have received permission for hydrocarbon reconnaissance

A permit for hydrocarbon reconnaissance grants subsoil users the following rights within the subsoil area included in the permit:

1) conduct a geological study of the structure and composition of geological strata by conducting field observations, geological, petrophysical, geophysical, geochemical and geotechnical studies, including the use of remote sensing methods, in order to assess the potential for discovering any hydrocarbon deposits;

2) extract and obtain hydrocarbon samples from the subsoil area specified in the permit for the purposes of conducting chemical or other analysis, testing, research or scientific experiments;

3) if necessary, carry out shallow drilling to a depth specified in the permit conditions, which must not exceed 300 meters from the soil surface;

4) carry out any other work necessary or related to hydrocarbon reconnaissance in accordance with the permit.

Unless otherwise provided by the terms of the hydrocarbon reconnaissance permit, the rights specified in Part One of this Article are not exclusive. The Subsoil Use Center, in accordance with the provisions of this Law, has the right to issue a permit for geological exploration of hydrocarbons on any part of a land plot that is part of an already issued hydrocarbon reconnaissance permit, without incurring any liability or obligation to return the fees paid by the subsoil user under the hydrocarbon reconnaissance permit.

In accordance with the provisions of this Law, a subsoil user has the right to prepare for sale and distribution, at its own expense and expense, the results and reports on the interpretation of any geological or other studies conducted within the boundaries of a subsoil area included in a hydrocarbon reconnaissance permit, and to receive any income received from any such sale thereof.

The issuance of a permit for hydrocarbon reconnaissance does not grant the subsoil user any preferential right to the issuance of a permit for geological exploration of hydrocarbons or a permit for hydrocarbon production in relation to any part of the land plot of the surface of the cadastral square or the subsoil plot included in the permit for hydrocarbon reconnaissance.

Article 68. Obligations of subsoil users who have permission to conduct hydrocarbon reconnaissance

Subsoil users who have permission to conduct hydrocarbon reconnaissance are required to:

1) within thirty days from the date of issuance of the permit, submit to the Subsoil Use Center a comprehensive reconnaissance work project for the entire period of validity of the permit;

2) before starting any reconnaissance work, obtain all necessary permits, conduct an environmental assessment and receive a positive conclusion from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The reconnaissance project shall describe in detail the proposed work and shall, at a minimum, indicate:

a) the purpose and nature of the relevant reconnaissance work;

b) the proposed reconnaissance methods, as well as the materials and equipment to be used;

c) the expected minimum amount of expenditure that is planned to be incurred during hydrocarbon reconnaissance work;

d) a preliminary plan for decommissioning if necessary.

The form of the reconnaissance work project is determined by legislative acts.

The reconnaissance work project submitted by the subsoil user is subject to approval by the Subsoil Use Center before the subsoil user begins any reconnaissance work. The Subsoil Use Center shall review the project within twenty working days. Refusal to approve the project must be motivated. The reconnaissance work project may be rejected only if it does not comply with the provisions of this Law, relevant environmental legislation or other applicable legislation.

During the validity period of the permit for hydrocarbon reconnaissance, the subsoil user is obliged to:

1) begin reconnaissance work on hydrocarbons within thirty days from the date of receipt of all necessary positive conclusions of the environmental assessment specified in paragraph 2 of part one of this article;

2) ensure that all hydrocarbon reconnaissance activities are carried out efficiently and effectively in accordance with good petroleum practice;

3) comply with the standards and requirements for work methods set out in the approved reconnaissance work project;

4) ensure that the hydrocarbon reconnaissance work is substantially consistent with the reconnaissance work project;

5) not to carry out any work related to the geological study of hydrocarbons;

6) limit the scope of reconnaissance work and any other use of the land plot of the surface of the cadastral square specified in the permit to the measures necessary for the purposes of such activity, so that all these works do not lead to a violation of public or private interests that can be avoided by reasonable means;

7) make annual minimum expenses;

8) ensure the safety and correct marking of natural and artificial carriers, store geological, mine surveying and other documents developed during reconnaissance work;

9) provide reports required in accordance with Article 69 of this Law;

10) not to extract any hydrocarbons or other type of mineral resources from a subsoil area, except in cases where such activity is reasonably necessary to allow the subsoil user to analyze or test hydrocarbon samples;

12) comply with the implementation of periodic and random checks and (or) audits;

13) develop and ensure compliance with a code of conduct to combat corruption in accordance with international treaties ratified by the Republic of Uzbekistan;

14) promptly and accurately declare and pay all customs duties, payments, fees and taxes that are not the subject of the dispute;

15) cooperate with all relevant competent authorities and law enforcement officials in order to comply with the provisions of this Law and any other applicable legislation.

In addition to the obligations specified in this article, a subsoil user who has permission to conduct hydrocarbon reconnaissance is obliged to inform the Subsoil Use Center or any other competent body in writing about the sale or exchange of results and interpretation reports of reconnaissance work.

Subsoil users who have permission to conduct hydrocarbon reconnaissance may also bear other obligations in accordance with the law.

Article 69. Reporting under the Hydrocarbon Reconnaissance Permit

A subsoil user who has permission to conduct hydrocarbon reconnaissance submits to the Subsoil Use Center, within fifteen days after the end of each quarter, a report containing detailed information on the progress of hydrocarbon reconnaissance work conducted by the subsoil user over the previous three months. The report includes:

1) information on field observations, geological or geophysical studies and (or) remote sensing work carried out on the territory of the land plot of the surface of the cadastral square;

2) the type, location and time of any such observation, research and/or work;

3) copies of data, records, plans, maps, hydrocarbon samples, accounts and information received by the subsoil user;

4) the results of the analysis of any such observation, research or work performed or being performed by the subsoil user.

Within three months from the date of termination of the permit for hydrocarbon reconnaissance, the subsoil user shall submit to the Subsoil Use Center in paper and electronic form a final report on the results of reconnaissance work carried out on the land plot specified in the permit during the entire period of validity of the permit, which shall include all primary data obtained during the performance of the work, as well as processing and interpretation materials, core samples and any other materials.

If any data obtained in the final quarter during which a hydrocarbon reconnaissance permit is valid requires processing for more than three months, the final report shall be submitted promptly after the data has been processed, but no later than six months after the expiration date of the hydrocarbon reconnaissance permit.

The form and requirements for the report on reconnaissance work on hydrocarbons are determined by legislative acts.

Chapter 8. Geological study of hydrocarbons

Article 70. Application for a permit for geological exploration of hydrocarbons

Any authorized person has the right to submit to the Subsoil Use Center an application for the issuance of a permit for geological exploration of hydrocarbons on a first-come, first-served basis in relation to no more than 5,250 adjacent open cadastral squares.

Applications are reviewed by the Subsoil Use Center.

To obtain a permit for geological exploration on a first-come, first-served basis, the interested party submits an application to the Subsoil Use Center indicating the following information:

1) the full name of the applicant in accordance with the state registration certificate;

2) information certifying that the applicant is an authorized person;

3) details of the requested open cadastral squares;

4) a document certifying that the applicant does not violate the restrictions on the total number of cadastral squares that may be in his possession when such a permit is issued;

5) a preliminary project for the geological study of hydrocarbons with a detailed description of the nature and type of the proposed relevant work and a preliminary amount of minimum planned expenses;

6) evidence certifying the financial, professional and technical capabilities and abilities of the applicant to carry out the proposed work on geological exploration of hydrocarbons in accordance with the preliminary work plan, including a list of countries in which the subsoil user has carried out such activities over the past five years;

7) a letter with an obligation not to begin any work on geological study of hydrocarbons until an environmental assessment has been carried out and a positive conclusion has been received from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan;

8) other information, in accordance with the requirements of the legislation;

9) a document confirming payment of the fee for consideration of the application.

The preliminary project for geological exploration of hydrocarbons must contain detailed information on the nature and scope of the proposed geological exploration, the methods and equipment that will be used in the course of their implementation, as well as the proposed schedule of work and the minimum amounts of expenses that the applicant plans to incur.

The amount of the fee for consideration of an application for a permit for geological exploration of hydrocarbons is determined by legislative acts. The fee is non-refundable.

Upon receipt of an application, the Subsoil Use Center registers it in the register of applications of the state subsoil fund cadastre, indicating the date and time of receipt of the application, and issues the applicant a document confirming the submission of the application.

The Subsoil Use Center shall confirm the completeness of the application, including the correctness of the form and content of the preliminary project for geological exploration of hydrocarbons, within five working days. If the application does not meet the requirements established in this article, the Subsoil Use Center shall notify the applicant of the identified errors. The applicant shall correct the identified errors within ten working days from the date specified in the notification. If the errors are corrected within such ten-day period, the date of submission of the application shall be considered the date of initial submission. If the errors are not corrected within the specified period, the Subsoil Use Center shall refuse to issue a permit for geological exploration of hydrocarbons.

Article 71. Additional methods of issuing permits for geological exploration of hydrocarbons

Permits for geological exploration of hydrocarbons may be issued through an auction or tender in cases where the Ministry of Mining and Geology of the Republic of Uzbekistan has determined the need to conduct competitive bidding through an auction or tender.

In special cases, permission for geological exploration of hydrocarbons may be issued in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan. In such cases, cadastral squares available for auction or tender are reserved by the Subsoil Use Center.

Auctions for issuing permits for geological exploration of hydrocarbons are carried out by holding trades on an electronic trading platform that excludes third-party interference, in accordance with the Regulation on the issuance of permits for the right to use subsoil areas, approved by the Cabinet of Ministers of the Republic of Uzbekistan.

The tender for issuing a permit for geological exploration of hydrocarbons is conducted in accordance with the procedure provided for by the Regulation on the issuance of permits for the right to use subsoil areas, approved by the Cabinet of Ministers of the Republic of Uzbekistan.

The main objectives of the tender process are:

1) organization of effective interaction between republican executive authorities and economic management bodies in developing conditions for the use of subsoil areas;

2) agreement on the initial conditions of the tender for the provision of subsoil areas, developed on the basis of existing geological data, geological survey reports and other relevant information;

3) organization of examination of submitted projects for geological exploration of hydrocarbons and assessment of their compliance with the legislation of the Republic of Uzbekistan, as well as established conditions for the use of subsoil areas;

4) submission of a preferred tender application to the Cabinet of Ministers of the Republic of Uzbekistan for approval.

Participants in an auction or tender must submit the information provided for in Article 70 of this Law in order to obtain the right to participate in the auction or tender, and a participant in the competition may submit an indicative plan for the geological study of hydrocarbons instead of a preliminary geological study project.

The protocol on determining the winner of an auction or tender is the basis for issuing the winner a permit for geological exploration of hydrocarbons in the relevant cadastral squares.

Funds from an auction or tender are distributed in accordance with the procedure established by law.

Permits for geological exploration of hydrocarbons issued in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan must comply with all the requirements of this Law, and additional conditions and fees may also be applied to them in accordance with an agreement concluded between the Cabinet of Ministers of the Republic of Uzbekistan and the subsoil user.

Article 72. Registration of a permit for geological exploration of hydrocarbons

The period for consideration of the submitted application shall not exceed twenty working days from the date of receipt of the completed application in accordance with Article 70 of this Law. Within three working days after the expiration of the period established for consideration of the submitted application or completion of the auction process, depending on the applicable case, the Subsoil Use Center shall issue a permit for geological exploration of hydrocarbons to the eligible person who first submitted a properly completed application or to the winner of the auction or tender, respectively.

The refusal of the Subsoil Use Center to issue a permit for geological exploration of hydrocarbons must be justified and comply with the provisions of this Law and legislative acts.

When issuing a permit for geological exploration of hydrocarbons, a corresponding entry is made in the register of permits of the state subsoil fund cadastre.

Article 73. Validity period of the permit for geological exploration of hydrocarbons

A permit for geological exploration of hydrocarbons, unless it has been previously refused or revoked, or its validity period has not been extended in accordance with the provisions of this Law, shall be issued for a period of up to five years from the date of registration of the permit.

The validity of the permit for geological exploration of hydrocarbons may be extended at the request of the subsoil user once for a period of up to four years. When extending the validity of the permit, the number of cadastral squares included in the permit is reduced by fifty percent.

Article 74. Requirements for conducting work on geological study of hydrocarbons

Before commencing the geological exploration of hydrocarbons, the subsoil user shall conduct any necessary environmental assessments and obtain all necessary safety approvals, including a positive conclusion of the environmental assessment by the State Environmental Assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan. The State Environmental Assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan, depending on the applicable case, shall provide such approvals to the subsoil user, and a copy thereof shall be sent directly to the Subsoil Use Center within five days of their receipt.

Within ninety days from the date of issuance of a permit for geological exploration of hydrocarbons, the subsoil user is obliged to submit to the Subsoil Use Center a final project for geological exploration of hydrocarbons for the entire period of validity of the permit, including, if necessary, a plan for eliminating the consequences of subsoil use.

Hydrocarbon exploration permits issued following an auction are automatically cancelled if a geological exploration plan is not submitted within ninety days from the date of issue of the permit.

The project for geological study of hydrocarbons includes detailed information on the types, methods and means of conducting geological study, minimum volumes of work and a work plan for the period of validity of the permit, as well as evidence of financial and technical capabilities for the implementation of the proposed work program. The form and special requirements for the geological study project are determined by legislative acts.

The project for geological study of hydrocarbons submitted by the subsoil user is subject to approval by the Subsoil Use Center before the subsoil user begins conducting geological study. The Subsoil Use Center shall review the project for geological study of hydrocarbons within twenty working days. Refusal to approve the project for geological study of hydrocarbons must be motivated. The project for geological study of hydrocarbons may be rejected only in cases where it does not comply with the provisions of this Law, environmental legislation or other applicable legislative acts.

In cases where the project for geological exploration of hydrocarbons has not been approved, the subsoil user has the right to re-submit a revised version of the project, which addresses the issues specified by the Subsoil Use Center.

Work performed in accordance with a permit for geological exploration of hydrocarbons is performed in accordance with the final project for geological exploration of hydrocarbons developed by the subsoil user. Except in emergency situations, geological exploration work for hydrocarbons not provided for in the approved project for geological exploration of hydrocarbons is prohibited.

In the event of a change in the types, methods and (or) means of the planned work on geological study of hydrocarbons, as well as the volume and timing of the work, the subsoil user is obliged to make the appropriate changes to the project for geological study of hydrocarbons. If these changes require additional approval and examination, the revised project for geological study of hydrocarbons is submitted to the Subsoil Use Center for review. If the Subsoil Use Center does not submit an objection within ten working days, the subsoil user may continue the work taking into account the changes made.

If the changes require any additional environmental assessment, such changes will not be implemented until such environmental assessment is completed and a positive conclusion is issued by the State Environmental Assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

Article 75. Requirements for conducting reconnaissance work on hydrocarbons during geological exploration

A subsoil user for geological study of hydrocarbons has the right to carry out any reconnaissance work on hydrocarbons only after written notification of the Subsoil Use Center and after receiving any necessary permit or approval or a positive conclusion of any environmental review required in accordance with applicable legislation.

The information submitted by a subsoil user on the geological study of hydrocarbons to the Subsoil Use Center in an application for approval of any planned work on hydrocarbon reconnaissance is determined by legislative acts.

Any changes to any planned hydrocarbon reconnaissance work that represent a change in the scope of reconnaissance work provided for in the approved geological survey work program require prior written approval from the Subsoil Use Center.

Article 76. Requirements for conducting drilling operations for hydrocarbons during geological exploration of hydrocarbons

If the work carried out by the subsoil user on geological study of hydrocarbons indicates the prospects of discovering hydrocarbons, the subsoil user prepares and coordinates with the relevant competent authorities all geological and technical recommendations and submits a drilling plan for information to the Subsoil Use Center. The content and format of the geological and technical documentation for the drilling plan are determined by legislative acts.

Procedures for well control systems, including well monitoring and blowout prevention, inspection and testing of equipment used in hydrocarbon drilling operations, testing or surveying of a well by a formation tester lowered on a drill string, abandonment and suspension of wells, dismantling of drilling rigs and suspension of hydrocarbon drilling operations shall be established by legislation.

Article 77. Annual minimum expenses for geological exploration of hydrocarbons

Subsoil users who have permission for geological exploration of hydrocarbons are required to comply with the requirements for annual minimum expenses established by this article.

Annual minimum expenses for a subsoil user for geological exploration of hydrocarbons are established by legislative acts. Calculation of annual minimum expenses for reconnaissance and geological exploration of hydrocarbons is made on the basis of the basic calculation value established in the territory of the Republic of Uzbekistan and valid on January 1 of the reporting year.

If the first or last year of the validity period of the permit for geological exploration of hydrocarbons is incomplete, the annual minimum costs are calculated proportionally for each full month of the validity period of the permit in the relevant year.

In the event of termination of the permit for geological exploration of hydrocarbons during the year, the annual minimum costs are calculated proportionally for each full month of the permit's validity in the specified year.

Eligible expenses and other expenses incurred by the subsoil user that are not subject to inclusion in the annual minimum expenses are determined by legislative acts. The calculation of minimum expenses for geological exploration of hydrocarbons is made only in relation to expenses incurred within the framework of the relevant permit.

In case of violation of obligations for annual minimum expenses stipulated by this article, the subsoil user is obliged to make the missing expenses and submit a report on this to the Subsoil Use Center no later than two months following the reporting year. In this case, expenses made by the subsoil user to eliminate the violation of its obligations are not included in the expenses of the current year and are considered reflected in the report for the reporting year.

Article 78. Rights of subsoil users who have permission for geological exploration of hydrocarbons

Subsoil users who have permission for geological exploration of hydrocarbons have the following exclusive rights:

1) to study and investigate the structure and composition of geological strata, as well as to conduct other reconnaissance and geological exploration work in order to discover hydrocarbon deposits and study the quality, scale and degree of development of such explored deposits;

2) carry out drilling and pilot industrial operation on a subsoil site for the purposes of analysis, research, testing or experiments;

3) extract and remove from the subsoil area any samples of hydrocarbons, as well as water samples taken from the area;

4) construct or move temporary structures and equipment on a subsoil plot or a land plot of the surface of a cadastral square, together with any personnel necessary for the effective conduct of oil and gas operations;

5) construct, erect, place and operate temporary oil and gas infrastructure facilities on the subsoil plot and the land plot of the surface of the cadastral square for the purpose of conducting reconnaissance work and geological study of hydrocarbons;

6) carry out other work necessary for the geological study of hydrocarbons or related auxiliary work;

7) request and receive permission to extract hydrocarbons at any time during the term of the permission for geological exploration of hydrocarbons, subject to the requirements established by Chapter 9 of this Law.

Subsoil users who have permission for geological exploration of hydrocarbons may also have other rights in accordance with this Law and other legislative acts.

Article 79. Obligations of subsoil users who have permission for geological exploration of hydrocarbons

Subsoil users who have permission for geological exploration of hydrocarbons are obliged to:

1) within ninety days from the date of issue of the permit, submit to the Subsoil Use Center a comprehensive project of geological survey work for the entire period of validity of the permit, including a preliminary plan for decommissioning the subsoil area indicating measures to eliminate the consequences of the proposed oil and gas operations;

2) before starting work on geological exploration of hydrocarbons, conduct an environmental assessment and obtain a positive conclusion from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The project for geological exploration of hydrocarbons must include detailed information on the work proposed to be carried out, the methods and means for conducting the geological exploration, and the schedule for completing the work for the period of validity of the permit for geological exploration of hydrocarbons.

The content and form of the project for geological exploration of hydrocarbons are determined by legislative acts.

During the validity period of the permit for geological exploration of hydrocarbons, the subsoil user is obliged to:

1) begin a geological study of hydrocarbons in accordance with the geological study work project within thirty days from the date of receipt of all necessary positive environmental assessments specified in paragraph 2 of part one of this article;

2) ensure that geological exploration work complies with all applicable standards and regulations, as well as good petroleum practice;

3) ensure that the actual geological survey work complies with the current hydrocarbon geological survey project;

4) limit all activities on geological exploration of hydrocarbons and any other lawful use of the subsoil area to measures necessary for the conduct of oil and gas operations, in order to ensure that all such activities do not result in a violation of public or private interests that can be avoided by reasonable means;

5) make annual minimum expenses;

6) ensure the safety and correct marking of natural and artificial carriers, store geological, mine surveying and other documents developed in the process of geological study;

7) create a fund for the decommissioning of a subsoil site and develop a preliminary plan for the elimination of the consequences of subsoil use in accordance with Chapter 15 of this Law;

8) maintain geological and other documentation during the search for hydrocarbon deposits;

9) comply with the reporting obligations provided for in Articles 80 and 81 of this Law;

10) comply with applicable legislation in the field of industrial safety and ensuring the safety of workers (personnel) and the population in the zone of influence of works related to the use of a subsoil site;

11) implement approved training programs and comply with standards on labor protection, safety engineering and the creation of favorable working conditions for employees, as well as measures to ensure preparedness and eliminate the consequences of accidents and emergency situations in accordance with Chapter 14 of this Law and applicable legislation;

12) ensure the safe conduct of work related to the use of a subsoil site, the adoption of measures to prevent emergency situations and the development of emergency response plans;

13) implement and ensure compliance with the anti-corruption code of conduct in accordance with applicable legislation and international treaties of the Republic of Uzbekistan;

14) promptly and accurately declare and pay all customs duties, payments, fees and taxes that are not the subject of the dispute;

15) cooperate with competent and law enforcement authorities in order to comply with the terms of the permit, the provisions of this Law, and other applicable legislation.

Subsoil users who have permission for geological exploration of hydrocarbons may also bear other obligations in accordance with the law.

Article 80. Reporting under a permit for geological exploration of hydrocarbons

A subsoil user who has a permit for geological exploration of hydrocarbons is required to submit to the Subsoil Use Center daily reports on the progress of any drilling operations for hydrocarbons that relate to a period not exceeding twenty-four hours, which, if the report is not the first report on a well, is calculated from the end of the period specified in the immediately preceding daily report on drilling operations. Each report on drilling operations shall be submitted within five days after the end of the day to which it relates.

A subsoil user who has permission for geological exploration of hydrocarbons is obliged to submit monthly reports on the work performed to the Subsoil Use Center within fifteen days after the end of each month.

Each monthly report contains a detailed description and assessment of the work performed in the previous month, broken down by type of work, including geological and geophysical surveys, interpretation, processing, additional interpretation of the original data, drilling, construction and any other associated work.

A subsoil user who has permission for geological exploration of hydrocarbons shall submit to the Subsoil Use Center within thirty days from the end of each quarter the following quarterly reports on the progress of the work:

1) a report on geological study with a description of the geological and geophysical studies carried out;

2) a report on the progress of well construction - if the subsoil user is constructing an exploratory well;

3) a report on the construction of a facility - in the event of the construction of any oil and gas infrastructure facility by a subsoil user.

A subsoil user who has a permit for geological exploration of hydrocarbons shall submit to the Subsoil Use Center, within thirty days after each twelve-month period ending on the anniversary of the date of commencement of geological exploration work, an annual report for the relevant twelve-month period.

A subsoil user who has permission for geological exploration of hydrocarbons is also obliged to submit special reports to the Subsoil Use Center if:

1) construction of an oil and gas infrastructure facility has been completed;

2) any oil and gas infrastructure facility has been altered or modified;

3) any well equipment is installed or modified;

4) samples of hydrocarbon reservoir fluid, including water, are taken;

5) well tests are carried out to determine hydrocarbon reservoir pressure, reservoir or hydrodynamic characteristics;

6) the well is completed or liquidated.

After the permit has expired, the subsoil user shall submit to the Subsoil Use Center in paper and electronic form a final report on the results of the work on geological study of hydrocarbons carried out on the subsoil site, which must include all primary data obtained during the work, as well as processing and interpretation materials, core samples and other materials, no later than three months from the date of termination of the permit.

In accordance with the provisions of this Law, the final report on the geological study of hydrocarbons shall include information provided for under the current categories A+B+C1 and C2, if necessary as a supplement to existing reports in the hydrocarbon resource accounting and management system (PRMS).

In the event that the final geological report does not contain information on the discovery of hydrocarbons or the calculation of mineral reserves, the subsoil user submits the final report to the Subsoil Use Center for generalization and systematization.

All reports that must be submitted by the subsoil user are prepared in the form determined by the Subsoil Use Center. The special format and requirements for each report are determined by legislative acts.

Information on expenses incurred by the subsoil user, provided in reports, is subject to confirmation by the auditor in accordance with the Law of the Republic of Uzbekistan "On Auditing Activity". Data on such expenses are recognized as confirmed by the auditor if they are separately presented (disclosed) in the financial statements that have undergone an audit review.

Article 81. Notification of discovery of hydrocarbons

A subsoil user who has permission for geological exploration of hydrocarbons is obliged to notify the Subsoil Use Center in writing of any discovery of hydrocarbons within twenty-four hours.

No later than thirty days after the submission of such notification, the subsoil user shall submit to the Subsoil Use Center all information obtained as a result of geological survey work that led to the discovery of hydrocarbons and shall inform the Subsoil Use Center of the advisability or lack of advisability of conducting an assessment of such discovery of hydrocarbons.

If a subsoil user who has a permit for geological exploration of hydrocarbons believes that the discovery of hydrocarbons merits an assessment, then the subsoil user, within ninety days after the date of sending the notification in accordance with Part One of this Article, shall submit a proposed plan of assessment work to the Subsoil Use Center for approval. The plan of assessment work must contain a description of the work that must be performed to determine whether the discovery of hydrocarbons, individually or in combination with other discoveries of hydrocarbons found in any part of the subsoil area, is a commercial discovery or not.

The period during which a subsoil user may carry out activities to evaluate hydrocarbons shall not exceed two years from the date of approval by the Subsoil Use Center of the evaluation work plan submitted by the subsoil user. The Subsoil Use Center has the right to extend the said two-year period if the subsoil user properly demonstrates to the Subsoil Use Center that the evaluation work was carried out in accordance with the approved evaluation work plan and that further evaluation work is necessary to determine whether the discovery of hydrocarbons is a commercial discovery or not.

The assessment work plan is updated annually and all changes are submitted to the Subsoil Use Center.

No later than one hundred and eighty days after the completion of the approved plan of assessment work, the subsoil user who has permission for geological exploration of hydrocarbons submits to the Subsoil Use Center a report in the form determined by the relevant legislative act, which indicates whether the discovery is commercial or not. This report is subject to approval by the State Commission on Mineral Reserves.

If a subsoil user who has a permit for geological exploration of hydrocarbons has announced a commercial discovery of hydrocarbons in accordance with this article, then such a subsoil user has the exclusive right to obtain a permit for the extraction of hydrocarbons.

Chapter 9. Permission for hydrocarbon extraction

Article 82. Application for a permit for hydrocarbon extraction

A subsoil user who has a permit for geological exploration of hydrocarbons has the exclusive right to issue a permit for the extraction of hydrocarbons on adjacent cadastral squares included in such permit for geological exploration of hydrocarbons and any adjacent open squares or, subject to compliance with the provisions of Article 108 of this Law, adjacent squares within the framework of the current permit, which cover the probable and possible extent of the commercial discovery of hydrocarbons, including adjacent cadastral squares that are necessary for the commercial exploitation of such a deposit.

If a hydrocarbon deposit containing a commercial discovery extends beyond the boundaries of a subsoil area specified in a valid permit for geological exploration of hydrocarbons, the subsoil user has the exclusive right to submit to the Subsoil Use Center an application to expand the perimeter of the subsoil area within the framework of the permit for hydrocarbon production, including open squares covering the extent of the relevant deposit or oil and gas field.

To obtain a permit for hydrocarbon extraction, a subsoil user who has a permit for geological exploration of hydrocarbons submits to the Subsoil Use Center a corresponding application indicating the following information:

1) full name of the applicant;

2) information certifying that the applicant is an authorized person;

3) detailed information about the requested cadastral squares;

4) all information on the geological study prepared and presented in the process preceding the announcement of a commercial discovery;

5) preliminary project for the development of a hydrocarbon deposit;

6) confirmation of the financial, professional and technical capabilities and capabilities of the applicant to carry out the proposed work on hydrocarbon production in accordance with the hydrocarbon field development project;

7) a positive conclusion of the environmental assessment;

8) a preliminary plan for decommissioning a subsoil site;

9) a document confirming payment of the fee for consideration of the application.

Requirements for the listed documents are determined by legislative acts.

If the validity period of a permit for geological exploration of hydrocarbons expires during the period during which the subsoil user must receive a positive conclusion from any environmental assessment required to submit an application for a permit for hydrocarbon production, then the permit for geological exploration of hydrocarbons shall continue to be valid until all positive conclusions from environmental assessments are received.

The amount of the fee for consideration of the application for a permit for hydrocarbon extraction is determined in accordance with the provisions stipulated by legislative acts. The fee amount is non-refundable.

Article 83. Additional methods of issuing permits for hydrocarbon extraction

Permits for hydrocarbon extraction may be issued by means of an auction or tender in cases where the Ministry of Mining and Geology of the Republic of Uzbekistan has determined the need to conduct competitive bidding by means of an auction or tender. These may be cases where:

1) a subsoil user who has permission for geological exploration of hydrocarbons waives his right to obtain permission to extract hydrocarbons in the subsoil area explored by him;

2) The Subsoil Use Center has determined the need to issue a permit for the extraction of hydrocarbons in open areas by holding an auction or tender.

Permits for the extraction of hydrocarbons may be issued in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan in special cases related to national development.

In such cases, cadastral squares required for the development of hydrocarbon deposits are reserved for auction or tender by the Subsoil Use Center.

Auctions for issuing permits for hydrocarbon extraction are carried out by means of bidding on an electronic trading platform that excludes third-party interference, in accordance with the Regulation on the issuance of permits for the right to use a subsoil plot, approved by the Cabinet of Ministers of the Republic of Uzbekistan.

The tender for issuing a permit for hydrocarbon extraction is conducted in accordance with the procedure provided for by the Regulation on the issuance of permits for the right to use subsoil areas, approved by the Cabinet of Ministers of the Republic of Uzbekistan.

The main objectives of the tender process are:

1) organization of effective interaction between ministries, departments and economic management bodies in developing conditions for the use of subsoil areas;

2) agreement on the initial conditions of the tender for the provision of subsoil areas, developed on the basis of existing geological data, geological survey reports and other relevant information;

3) organization of examination of submitted projects related to the development of oil and gas fields and assessment of their compliance with the legislation of the Republic of Uzbekistan, as well as established conditions for the use of subsoil areas;

4) submission of a preferred tender application to the Cabinet of Ministers of the Republic of Uzbekistan for approval.

Participants in an auction or tender shall submit the documents required in accordance with Article 82 of this Law to obtain the right to participate in the auction or tender, with the exception of environmental assessment, and a bidder shall have the right to submit an indicative plan for the development of an oil and gas field instead of a preliminary project for the development of an oil and gas field. A participant in an auction or tender shall undertake not to commence work until an environmental assessment has been conducted and a positive conclusion has been received from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The protocol on determining the winner of an auction or tender is the basis for issuing the winner a permit for hydrocarbon extraction in the relevant cadastral areas. In addition to compliance with all the requirements of this Law, additional conditions and fees may be established for permits for hydrocarbon extraction issued in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan, which are determined in the agreement concluded by the Cabinet of Ministers of the Republic of Uzbekistan and the subsoil user.

Funds from an auction or tender are distributed in accordance with the procedure established by legislative acts.

Article 84. Registration of a permit for hydrocarbon extraction

Within five working days from the date of receipt of an application for a permit for the extraction of hydrocarbons from a subsoil user who has a permit for the geological study of hydrocarbons, or the receipt of a final project for the development of an oil and gas field after the completion of an auction or, depending on the applicable case, the Subsoil Use Center shall review the application and conduct a preliminary review to determine the completeness of the submitted application.

The applicant will be notified of any deficiencies in the application after the preliminary review stage. The Subsoil Use Center may allow the applicant to correct minor deficiencies in the application or return the application. If the application is returned, the applicant may re-submit a new application.

The initial review of the completed application is carried out by the Subsoil Use Center within twenty working days from the date of receipt of the completed application.

When considering an application, the Subsoil Use Center shall examine the financial, professional and technical capabilities and capacities of the applicant to carry out the proposed hydrocarbon production work, as well as the technical and operational aspects of the proposed oil and gas field development project for completeness, feasibility and compliance of the submitted documents with the provisions provided for in Articles 82 and 85 of this Law. In cases where deficiencies are discovered in the proposed oil and gas field development project, the Subsoil Use Center may require the applicant to eliminate the deficiencies within a reasonable period not exceeding ninety days.

Upon receipt of such a request, the applicant may withdraw his application, amend it, or provide a written explanation that it is not appropriate to amend it. If the applicant amends his application or provides a written explanation that it is not appropriate to amend it, the Subsoil Use Center shall consider such response and provide its response within twenty working days. In addition, the applicant may request a hearing to present his position, and the Subsoil Use Center shall have the right to require the applicant to appear in person to answer questions regarding the proposed oil and gas field development project. In such case, the Subsoil Use Center shall convene such a hearing to consider the applicant’s arguments within fifteen working days. The Subsoil Use Center shall not raise new issues that may have been known at the time and that were not included in its initial consideration under the process described in this part. The process described in this part shall be applied multiple times until the Subsoil Use Center is ready to approve the permit or the applicant finally withdraws his application.

Upon completion of the process described in the previous parts, the Subsoil Use Center approves or rejects the oil and gas field development project.

If the proposed oil and gas field development project is approved and provided that the application meets all other requirements of this Law, the Subsoil Use Center issues a permit for hydrocarbon extraction.

In cases where changes to the proposed oil field development project require additional environmental assessment or revision, a permit is not issued until the environmental assessment has been conducted and a positive conclusion has been received from the State Environmental Assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The Subsoil Use Center has the right to refuse to issue a permit for hydrocarbon extraction if the application does not meet the requirements provided for in Articles 82 or 83. The refusal must be substantiated. Refusal based on conditions not provided for by this Law is not permitted. The Subsoil Use Center notifies the applicant of such refusal after the application review period has expired.

When a permit for hydrocarbon extraction is issued, a corresponding entry is made in the register of permits of the hydrocarbon cadastre.

Article 85. Hydrocarbon deposit development project

A hydrocarbon deposit development project submitted by a subsoil user in accordance with Article 82 of this Law shall provide a detailed description of the economic, technical, environmental, resource and safety aspects in relation to the planned production work and, at a minimum, shall contain the following:

1) a description of the subsoil area included in the permit, including a brief description of its geological structure, analysis and interpretation;

2) a brief description of the work carried out on geological study and assessment;

3) information on available options for hydrocarbon production, as well as a technical and economic assessment substantiating that the proposed option is the best of the available alternatives;

4) a detailed description of the work proposed to be carried out based on the best acceptable option for hydrocarbon production, including:

a) the proposed work schedule;

(b) any temporary or permanent hydrocarbon production facilities or other infrastructure facilities that are planned to be constructed or used in connection with the planned mining activity;

c) organizational systems and management systems that are planned to be implemented when performing these works;

5) a hydrocarbon deposit management plan for a subsoil area or part thereof, including a preliminary term for the economic cycle of developing a commercial discovery, which must be provided in the event of changes to the approved deposit development project;

6) description of the method of financing hydrocarbon production work;

7) a preliminary decommissioning plan, including a plan for eliminating the consequences of hydrocarbon production operations (elimination plan).

The special form and content of the project for the development of hydrocarbon deposits are determined by legislative acts.

When considering a hydrocarbon field development project before issuing a permit for hydrocarbon production, the Subsoil Use Center examines the technical and operational aspects of the plan. The Subsoil Use Center is not responsible for examining the financial aspects of the plan. The Subsoil Use Center has the right, if there are reasonable grounds, to give priority to the following criteria:

1) compliance of the most efficient available hydrocarbon production option and the proposed hydrocarbon production activities with good petroleum practice;

2) the use of sustainable and environmentally friendly technologies for hydrocarbon production;

3) preventing damage to hydrocarbon deposits;

4) prevention of damage to exploited and adjacent deposits of solid minerals and other subsoil areas as a result of hydrocarbon extraction operations;

5) ensuring the receipt of maximum total income and profit for the state.

Additional requirements for the development of a discovered hydrocarbon deposit and the processing of hydrocarbons may be determined by legislative acts depending on the types and properties of hydrocarbons, methods of developing the hydrocarbon deposit, types of processing technologies and other factors.

An approved project for the development of an oil and gas field, unless changes have been made to it in accordance with Article 91 of this Law, shall remain in force and must be implemented within five years from the date of its approval by the Subsoil Use Center.

As an exception, the Subsoil Use Center may require that a hydrocarbon deposit development project cover a longer period than the period specified in Part Five of this Article, which must not exceed ten years, if, depending on individual circumstances such as the large scale, technical implementation, and duration of the planned hydrocarbon production work, an increase in the implementation period is required.

Deviations from the approved hydrocarbon field development project are permitted only in emergency situations.

Article 86. Validity period of the permit for hydrocarbon extraction

A permit for the extraction of hydrocarbons shall be issued for a period of up to twenty-five consecutive years from the date of registration of the permit, unless it has previously been rejected or revoked or its validity period has been extended in accordance with the provisions of this Law.

The validity period of a permit for hydrocarbon extraction may be extended for a period of up to twenty-five years once upon application by the subsoil user.

Article 87. Requirements for the performance of hydrocarbon extraction operations

Before starting any hydrocarbon production activity, the subsoil user conducts all required environmental assessments and obtains all necessary permits in the field of safety, including a positive conclusion of the environmental assessment by the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan. Such approvals are provided to the Subsoil Use Center within five days of their receipt.

Hydrocarbon production is carried out:

1) in such a way as to ensure the extraction of the greatest volume of hydrocarbon reserves at each individual hydrocarbon deposit or at several deposits;

2) using the latest available technologies and in accordance with sound economic principles;

3) in accordance with the legislation of the Republic of Uzbekistan and good oil and gas practice.

When carrying out hydrocarbon extraction, the subsoil user is obliged to ensure:

1) optimality and safety of the technical means of extraction used;

2) protection of hydrocarbon deposits from manifestations of dangerous man-made processes that lead to complications in their extraction and a decrease in the economic efficiency of hydrocarbon extraction;

3) correct accounting of extracted hydrocarbon reserves, including those lost or used during oil and gas operations and remaining in the subsoil, their processed products and production waste generated during the extraction process;

4) compliance with environmental and sanitary-epidemiological requirements for the storage and placement of waste from the extraction and processing of hydrocarbons in order to prevent their accumulation in the areas of water intake structures and in places where hydrocarbons are found;

5) compliance with the norms and standards of the applied methods and extraction techniques;

6) extraction of hydrocarbons in the manner prescribed by the field development project.

When developing a hydrocarbon deposit, the subsoil user is obliged to constantly monitor production, the technological mode of well operation (pressure, flow mode, the amount of hydrocarbons and other fluids produced or injected into each well) throughout the oil and gas deposit, as well as for each individual hydrocarbon layer, including the composition of the components and the amount of hydrocarbons produced. The subsoil user keeps records of the total monthly amount of hydrocarbons produced and injected for each individual well on a monthly basis.

Subsoil users producing hydrocarbons under different permits may inject prepared formation water from one subsoil user into the formation of another subsoil user’s deposit for the purpose of maintaining formation pressure in cases provided for by this Law.

Subsoil users may engage individuals who own the necessary infrastructure facilities to prepare associated water for subsequent injection into the reservoir to maintain reservoir pressure.

Associated extraction of groundwater during hydrocarbon production is carried out without obtaining permits for special water use or special water consumption issued in accordance with the law. Further use of associated extracted groundwater (except for industrial groundwater) is carried out in accordance with the law.

Article 88. Oil and gas infrastructure facilities

The subsoil user for hydrocarbon production notifies the Ministry of Energy of the Republic of Uzbekistan in writing and receives its preliminary approval for:

1) installation of an oil and gas infrastructure facility or part thereof;

2) the period of initial commissioning of the oil and gas infrastructure facility;

3) any major reconstructions or modifications to an oil and gas infrastructure facility and the time frame for when the facility will resume operations following the reconstruction or modification;

4) any change in the purpose for which the oil and gas infrastructure facility was originally approved, in accordance with the oil and gas field development plan;

5) the use of an established facility beyond the period for which it was originally envisaged by the field development project, and the measures that must be implemented to ensure its effective operation after the expiration of the established period;

6) the decision of the subsoil user to cease operation, to dispose of and liquidate the oil and gas infrastructure facility.

The obligations provided for in this article also apply to subsoil users who have received permission for geological exploration of hydrocarbons.

Article 89. Conducting geological survey within the framework of a permit for hydrocarbon extraction

During the period of hydrocarbon production, subsoil users have the right to conduct geological surveys at a subsoil site for the purpose of further clarifying the geological structure and reserves of the discovered hydrocarbon deposit or pool within the framework of the current hydrocarbon production permit. Any such geological surveys and geological surveys of the deposit are conducted in accordance with the hydrocarbon deposit development project and good oil and gas practice.

Subsoil users shall notify the Subsoil Use Center in writing of any geological study of the deposit that they intend to conduct, one week before the commencement of such work. The format of such notification shall be determined by legislative acts.

If, during geological exploration, subsoil users discover a new deposit at a production site, its assessment is carried out in accordance with the supplement to the field development project.

The discovery of new hydrocarbon deposits in a subsoil area is not a basis for extending the period of hydrocarbon production.

The subsoil user shall submit to the Subsoil Use Center all information on the results of any operational geological study of the deposit and survey within one month after the completion of such work.

Article 90. Flaring of associated gas and cold discharge of gas

Flaring or cold discharge of produced hydrocarbons shall be permitted only if necessary for safety purposes or during the commissioning of a facility used in hydrocarbon assessment or during hydrocarbon production operations.

Subsoil users are required to consider all reasonable commercial or operational alternatives to flaring or cold venting of produced hydrocarbons, including use as fuel or as a means to enhance hydrocarbon recovery, injection for disposal, storage, or making any excess hydrocarbons available to the state for domestic use on acceptable economic terms.

The subsoil user submits an application to the Subsoil Use Center before the start of the planned flaring or cold discharge of hydrocarbons, as well as in connection with the necessary environmental assessment, receives a positive conclusion or other approvals from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The application for flaring or cold discharge of produced hydrocarbons shall indicate the reasons for filing the application and a description of the relevant oil and gas infrastructure facility, as well as the volumes, composition and period of flaring or cold discharge of hydrocarbons.

The Subsoil Use Center establishes maximum volumes of extracted hydrocarbons for certain periods of time, subject to injection, cold discharge or flaring by the subsoil user during production operations. When establishing these volumes, the Subsoil Use Center closely interacts with the subsoil user and:

1) distributes the total monthly volumes of produced hydrocarbons subject to injection, discharge and flaring by field, each hydrocarbon reservoir layer and by each individual well;

2) takes into account the production schedule on which the field development plan is based, unless new information about the characteristics of the field or other circumstances require otherwise.

Requirements for flaring or cold discharge of extracted hydrocarbons are determined by legislative acts.

The subsoil user submits to the Subsoil Use Center all data and information on the use, injection, cold discharge, flaring and combustion of hydrocarbons in its monthly reports.

Article 91. Amendments to an approved project for the development of a hydrocarbon deposit

In the event of the need to make changes to the types, methods and (or) technologies of the planned work on hydrocarbon extraction and (or) technologies, volumes and deadlines for the performance of work, including any changes in the composition of production and infrastructure facilities, the subsoil user makes the appropriate changes to the approved project for the development of a hydrocarbon deposit and submits the amended version of the plan to the Subsoil Use Center.

The subsoil user shall agree on changes in the hydrocarbon deposit development project with the Subsoil Use Center in the event of:

1) an increase in the risks associated with production work provided for by the current hydrocarbon field development project;

2) changes in production methods and/or technologies that lead to the emergence of additional risks not provided for in the current hydrocarbon field development project;

3) making changes to production work, the implementation of which will lead to the impossibility of achieving the environmental and economic indicators specified in the current hydrocarbon field development project;

4) making changes to production work, the implementation of which requires obtaining a positive conclusion from an environmental assessment, and which were not provided for in the current hydrocarbon deposit development project;

5) changes in mining operations that involve additional disturbances to the integrity of the topsoil;

6) changes in the number and parameters of the main hydrocarbon production facilities and (or) infrastructure facilities.

The revised project for the development of a hydrocarbon deposit shall be subject to review by the Subsoil Use Center within twenty working days from the date of receipt of such revised project.

The Subsoil Use Center shall review the hydrocarbon deposit development project for completeness, feasibility, and compliance of the submitted documents in accordance with Article 85 of this Law.

In case of detection of deficiencies in the project for development of hydrocarbon deposits, the Subsoil Use Center has the right to demand that the applicant eliminate such deficiencies within a reasonable period not exceeding ninety days. In cases where changes made to the project for development of hydrocarbon deposits require any additional environmental assessment or its revision, then approval of such a project is carried out only after such environmental assessment and receipt of a positive conclusion from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

After completion of the review process, the Subsoil Use Center accepts or puts forward reasonable conditions necessary for approval of the amended hydrocarbon deposit development project, which the subsoil user is obliged to comply with.

It is prohibited to carry out work in accordance with the amended project for the development of hydrocarbon deposits until it is approved by the Subsoil Use Center.

Article 92. Annual minimum expenses for hydrocarbon production

Subsoil users who have a permit for hydrocarbon extraction are required to comply with the requirements for annual minimum expenses for hydrocarbon extraction established by this article and legislative acts.

Annual minimum expenses for a subsoil user who has a permit for hydrocarbon extraction are established by legislative acts. The calculation of annual minimum expenses for hydrocarbon extraction is made on the basis of the basic calculation value established in the territory of the Republic of Uzbekistan and valid on January 1 of the reporting year.

If the first or last year of the validity period of the hydrocarbon extraction permit is incomplete, the annual minimum costs are calculated proportionally for each full month of the validity period of the permit in the relevant year.

In the event of termination of the hydrocarbon production permit during the year, the annual minimum costs are calculated proportionally for each full month of the permit's validity in the specified year.

The types of oil and gas operations that are subject and not subject to inclusion in the annual minimum costs of hydrocarbon extraction are determined by law. The calculation of minimum costs of hydrocarbon extraction is made only with respect to costs incurred on the cadastral squares specified in the permit.

In case of violation of the obligations on annual minimum expenses for hydrocarbon extraction stipulated by this article, the subsoil user is obliged to make the missing expenses and submit a report on this to the Subsoil Use Center no later than three months following the reporting year. In this case, expenses made by the subsoil user to eliminate the violation of its obligations are not included in the expenses of the current year and are considered reflected in the report for the reporting year.

Article 93. Rights of subsoil users who have a permit for hydrocarbon extraction

A permit for the extraction of hydrocarbons grants the subsoil user the exclusive right to extract and process any types of hydrocarbons extracted from the subsoil area included in the permit.

Work on hydrocarbon extraction is carried out in accordance with the terms of the hydrocarbon extraction permit and the provisions of the approved oil and gas field development project.

A permit for hydrocarbon extraction grants the subsoil user the following rights within the land plot of the surface of the cadastral square and the subsoil plot included in the permit:

1) conduct additional geological study of the subsoil area included in the permit to accurately assess the quality, scale and degree of use of the commercial discovery;

2) conduct pilot industrial production of hydrocarbons in accordance with the legislation;

3) conduct additional research to re-evaluate hydrocarbon reserves;

4) carry out work on the extraction of hydrocarbons;

5) carry out the extraction of any type of hydrocarbons in the subsoil area specified in the permit;

6) process the extracted volumes of hydrocarbons into commercial products and products of deep processing of natural gas;

7) transport, store and sell extracted hydrocarbons;

8) subject to obtaining the relevant permits, approvals and consents, to place infrastructure facilities for the extraction of hydrocarbons, their processing, transportation and other related facilities, including:

a) to carry out construction, installation, placement or transfer and operation on the subsoil site specified in the permit of infrastructure facilities for the performance of hydrocarbon extraction operations;

b) carry out the construction or installation of temporary or permanent structures and equipment for personnel necessary for the effective conduct of hydrocarbon production operations;

c) carry out construction, installation, placement and operation of any infrastructure facilities, including loading, transportation, unloading, storage (on a permanent basis and otherwise) and processing of extracted hydrocarbons, petroleum products, products of deep processing of natural gas and other materials, provided that such activities are directly related to work on the extraction of hydrocarbons;

9) subject to obtaining the relevant permits or approvals for the use of any natural hydroelectric resources within the subsoil area included in the permit, use such natural hydroelectric resources for purposes related to hydrocarbon extraction activities;

10) to use and exercise their rights within the framework of the permit, without interference;

11) carry out other activities necessary or related to hydrocarbon extraction work.

Article 94. Obligations of subsoil users who have a permit for hydrocarbon extraction

During the validity period of the hydrocarbon extraction permit, subsoil users are obliged to:

1) begin work on hydrocarbon production within six months from the date of issue of the permit;

2) ensure that all types of oil and gas operations, including production technology, comply with all applicable standards and regulations, the methods and technologies used, and good petroleum practice;

3) ensure that oil and gas operations are substantially consistent with the current approved hydrocarbon field development project;

4) in the event of a change in the current project for the development of a hydrocarbon deposit, submit an updated project for the development of a hydrocarbon deposit to the Subsoil Use Center;

5) limit all hydrocarbon extraction activities and any other lawful use of the subsoil area to measures necessary for the implementation of hydrocarbon extraction, in order to ensure that all such activities do not result in a violation of public or private interests that can be avoided by reasonable means;

6) carry out continuous monitoring of the productivity of the hydrocarbon reservoir and the development of the hydrocarbon deposit in order to ensure the maximum possible extraction of hydrocarbons;

7) establish, implement and regularly update appropriate management systems designed to ensure systematic and ongoing compliance with all requirements established by current legislation in relation to subsoil use activities and ensure control over their implementation;

8) make annual minimum expenditures on hydrocarbon production, as provided for in Article 92 of this Law;

9) to acquire and renew on an ongoing basis insurance policies for all types of oil and gas operations and to ensure that the limits, deductibles and other terms of the relevant insurance coverage comply with the practices generally applied in the given oil and gas industry, taking into account the nature and types of oil and gas operations carried out;

10) maintain accurate records, measurements and testing of hydrocarbons for the purposes of processing, commercial accounting and taxation in accordance with applicable laws and good petroleum practice and the instructions provided by the manufacturer of the relevant equipment;

11) maintain reliable records of extracted hydrocarbons, waste generated during extraction, including maintaining daily work logs on development and registers of production, product shipments, equipment deliveries and shipments, accidents and visitors to facilities;

12) inform the Ministry of Energy of the Republic of Uzbekistan and any other authorized body about all aspects of work on hydrocarbon production in accordance with the provisions of this Law and other applicable legislation;

13) to fulfill in a timely manner the reporting obligations established by Articles 97 and 98 of this Law;

14) implement the approved environmental and social management plan, and periodically review and update it, including monitoring and reporting;

15) comply with environmental requirements when storing and disposing of waste;

16) comply with the requirements of legislation regulating the processing and sale of hydrocarbons;

17) make contributions to the decommissioning fund for the decommissioning of oil and gas installations and the restoration of the land plot included in the hydrocarbon extraction permit, in accordance with Chapter 15 of this Law;

18) implement the plan for the procurement of local goods and services in accordance with Chapter 16 of this Law;

19) implement the plan for recruitment, training and promotion of local personnel in accordance with Chapter 16 of this Law;

20) implement approved training programs and comply with labor protection, safety and employee welfare standards, as well as measures to ensure preparedness and response to accidents and emergencies in accordance with Chapter 16 of this Law and other legislative acts;

21) implement and ensure compliance with the anti-corruption code of conduct in accordance with international treaties of the Republic of Uzbekistan;

22) conduct periodic and random inspections and/or audits;

23) promptly and accurately declare and pay all taxes for the use of subsoil, land taxes, customs duties, payments, fees and taxes that are not the subject of the dispute;

24) cooperate with all relevant authorized bodies and law enforcement officials in order to comply with the provisions of this Law and any other applicable legislation.

Subsoil users who have permission to extract hydrocarbons may also bear other obligations in accordance with the law.

Article 95. Joint implementation of hydrocarbon production

In the event that any hydrocarbon deposit containing a commercial discovery is partially located within a subsoil area included in one hydrocarbon extraction permit and partially within another subsoil area related to another hydrocarbon extraction permit, the Ministry of Energy of the Republic of Uzbekistan may send a written request to such subsoil users on the need to conclude a joint development agreement with the aim of conducting joint work on hydrocarbon extraction.

According to the agreement on joint development, the subsoil areas specified in the permits for hydrocarbon extraction are considered as a single subsoil area in order to improve the technical and economic indicators of the development of the relevant field and ensure more efficient and optimized hydrocarbon extraction.

If the subsoil users have not agreed on the terms of the joint development agreement within eighteen months from the date of receipt of the written notification specified in the first part of this article, the Ministry of Energy of the Republic of Uzbekistan may make a decision regarding the terms of the joint development agreement.

Without limiting the range of issues to be considered in a joint development agreement:

1) a subsoil area is determined where work on joint development of the deposit will be carried out;

2) the share of participation of each subsoil user within the framework of the joint development agreement is indicated;

3) the joint use of production facilities, infrastructure facilities and auxiliary systems, including electricity, equipment and materials between subsoil users is listed;

4) types of oil and gas operations related to joint development and production are envisaged, including relevant work programs and budgets;

5) the decision-making process is prescribed;

6) a procedure is provided for appointing an operator who will manage current joint operations for the extraction of hydrocarbons, and the procedure for his resignation and replacement is established;

7) the procedure for dividing and distributing volumes of extracted hydrocarbons between subsoil users is determined, including relevant taxation issues;

8) provisions are prescribed for non-payment of fees, extension, transfer, refusal and termination of the contract, as well as decommissioning of oil and gas infrastructure facilities.

Taking into account part six of this article, in the event of joint development of a hydrocarbon deposit, the Subsoil Use Center shall reissue the relevant permits that the Subsoil Use Center deems appropriate, taking into account the planned joint development of the hydrocarbon deposit.

The parties to the joint development agreement are required to draw up and submit for approval a new project for the development of a hydrocarbon deposit after the approval of the joint development agreement by the Subsoil Use Center, which substantiates the need for and effectiveness of joint development, as well as the scheme for its implementation.

Any change to the joint development agreement requires prior approval from the Subsoil Use Center.

Article 96. Extraction of hydrocarbons in border areas of subsoil

If, as a result of hydrocarbon extraction operations, a subsoil user discovers hydrocarbon deposits (a set of deposits) in a border area of the subsoil located within the territory of the Republic of Uzbekistan and extending into the territory of a neighboring state, then he is obliged to immediately notify the Subsoil Use Center and the Ministry of Energy of the Republic of Uzbekistan in writing or electronically.

In the absence of relevant international treaties of the Republic of Uzbekistan with a state in whose subsoil a part of the discovered deposit (aggregate of deposits) of hydrocarbons is located, the Subsoil Use Center has the right to decide to suspend work on the extraction of hydrocarbons in the border area of the subsoil until an agreement is reached with such a state.

Within three working days from the date of the decision to suspend hydrocarbon production in the border subsoil area, the Subsoil Use Center shall notify the subsoil user in writing or electronically and, within thirty calendar days, initiate the development of an international agreement between the Republic of Uzbekistan and the neighboring state regulating the procedure and conditions for the development of a hydrocarbon deposit located in the border subsoil area.

If the Subsoil Use Center decides to suspend hydrocarbon extraction work in a border subsoil area, the validity of the permit for hydrocarbon extraction is considered suspended until a permit is issued to resume the work.

Article 97. Reporting under a permit for hydrocarbon extraction

All hydrocarbon production activities are documented in hydrocarbon reports.

A subsoil user who has permission to extract hydrocarbons submits the following reports to the Ministry of Energy of the Republic of Uzbekistan:

1) if hydrocarbons are extracted from a subsoil area:

a) no later than two days after the end of the relevant day - a daily report on hydrocarbon production for each day;

b) no later than ten days after the end of each month after the start of actual hydrocarbon production - a monthly production report, indicating information on production work for the past month;

2) within thirty days after the end of each quarter:

a) quarterly report on the performance of the hydrocarbon field;

b) a report on the sale of extracted hydrocarbons for the previous quarter.

No later than thirty days after the end of each year, starting from the start of hydrocarbon production operations, the subsoil user shall submit to the Ministry of Energy of the Republic of Uzbekistan and the Ministry of Mining and Geology of the Republic of Uzbekistan an annual report, which shall include:

1) a description of all types of general work on hydrocarbon extraction carried out at the subsoil site over the past year, a preliminary calculation of hydrocarbon reserves for each deposit or part thereof, as well as the volumes of hydrocarbons for each discovery object for its development at the subsoil site;

2) information on hydrocarbon production volumes (including production losses), including current information on the management and ensuring the efficiency of hydrocarbon field development;

3) information on the costs of production, shipment and sale of hydrocarbons;

4) information on purchased goods, works and services, as well as the share of local content in them, including expenses on training the local workforce and research activities;

5) other information in accordance with the requirements of the legislation.

The subsoil user for hydrocarbon production also submits special reports to the Ministry of Energy of the Republic of Uzbekistan in the event of:

1) completion of construction of an infrastructure facility used in the process of hydrocarbon extraction;

2) changes or modifications to the infrastructure facility;

3) installations or changes inside the well equipment;

4) conducting tests of a production well to determine reservoir pressure, reservoir characteristics or hydrocarbon flow characteristics;

5) completion and liquidation of a production or production well.

If a subsoil user who has a permit for hydrocarbon extraction conducts reconnaissance work or work on the geological study of hydrocarbons, then he shall submit the reports provided for in Articles 69 and 80 of this Law, respectively.

The format and content of each such report are determined by legislative acts.

Article 98. Final report under the permit for hydrocarbon extraction

Subsoil users who have a permit for hydrocarbon production are required, within three months from the date of termination of the permit, to submit to the Ministry of Energy of the Republic of Uzbekistan and the Ministry of Mining and Geology of the Republic of Uzbekistan a final report in the form established by legislative acts for the entire period of validity of the permit.

The final report contains a collection of annual hydrocarbon reports and describes:

1) the results of the work carried out on extraction and processing, including information on the tonnage, volumes, composition, content and cost of extracted hydrocarbons, produced petroleum products and products of deep processing of natural gas;

2) information on the tonnage and volume of waste removed and the method of its disposal;

3) detailed information on expenses, costs and employees;

4) a preliminary calculation of the remaining reserves and resources of hydrocarbons located in the subsoil area, which is displayed in plans and sections at the appropriate scale;

5) health and safety issues and environmental issues associated with mining and processing activities carried out under the permit, including the type and number of any serious accidents or incidents that have occurred;

6) implemented and planned measures for the restoration of the land plot, ensuring the final restoration of the plot in accordance with the decommissioning plan and the plan for eliminating the consequences of subsoil use;

7) total expenses incurred by the subsoil user in the course of hydrocarbon extraction operations.

Article 99. Guarantees provided to subsoil users who have a permit for hydrocarbon extraction

Taking into account the second part of this article, subsoil users extracting hydrocarbons, when developing a new deposit, are guaranteed:

1) purchase by relevant government agencies or state enterprises of a portion of the extracted hydrocarbons, in accordance with separate agreements;

2) access to hydrocarbon transportation and processing facilities and other relevant infrastructure for all volumes of hydrocarbons extracted from the subsoil area;

3) the right to export to third parties parts of the extracted natural gas on the terms of market transactions in accordance with the principle of disinterestedness of the parties at international market prices, in accordance with separate agreements.

In the event of force majeure, the provision of this guarantee may be suspended in accordance with the acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan until the end of any event. For the purposes of this article, force majeure means any extraordinary event that is beyond the control of the permit holder and (or) any competent state authorities and is unexpected or unforeseen.

Such an event may only include natural disasters such as earthquakes, declared or undeclared wars, hostilities with foreign countries, invasions, civil riots, extreme cold weather, and large-scale civil unrest such as general strikes.

Chapter 10. Underground storage

Article 100. Subsoil space available for underground storage

The subsurface space available for underground storage is a three-dimensional spatial property of the subsurface that, taking into account geotechnical, geological, economic and environmental factors, can be used as an environment for the placement of production, scientific or other activities.

Subsoil space objects may be natural or artificially created subsoil cavities, as well as other subsoil areas suitable for use as an environment for human habitation, placement of production, scientific and other activity facilities.

Other subsoil resources, including minerals, located within the boundaries of a subsoil plot are not recognized as an integral part of the space of the subsoil plot.

Article 101. Territories of subsoil space for underground storage

The subsoil area, the natural geological conditions of which allow it to be used for purposes not related to the extraction of minerals, is selected based on the results of targeted geological exploration work, as well as the analysis of existing geological materials.

Geological materials of the selected area of subsoil space undergo state examination in the manner determined by legislative acts.

Cadastral squares on which a mineral deposit is located, as well as cadastral plots located on the land plot of the surface of the cadastral square of domestic drinking groundwater, cannot be provided for use for underground storage.

The decision on the validity of the selection of a subsoil area for use for purposes not related to the extraction of minerals is made by the State Commission on Mineral Reserves.

Cadastral areas that can be used for underground storage must be recorded in the cadastre of the state subsoil fund. Such cadastral squares must also be open, unless otherwise specified and permitted.

Article 102. Permission for geological exploration of the subsoil for storage

In accordance with the procedure established by this Law, individual subsoil areas allocated in accordance with Article 101 of this Law may be provided for geological study for storage.

Permission for geological exploration for storage is issued to authorized persons on a first-come, first-served basis for forty open adjacent cadastral squares.

To obtain permission for geological exploration of the subsoil for storage, the authorized person submits an application to the Subsoil Use Center, which specifies the following information:

1) the full name of the applicant in accordance with the state registration certificate;

2) a document certifying that the applicant is an authorized person;

3) detailed information on the requested open cadastral squares, including a map of the appropriate scale indicating their location and coordinates;

4) a geological survey project containing a justification for the need to study the relevant subsoil area;

5) a letter with an obligation not to commence any activity until the necessary environmental assessment has been carried out and a positive conclusion has been received from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

The fee for consideration of an application for a permit for geological exploration of subsoil for storage is determined by legislative acts. The fee is non-refundable.

The Subsoil Use Center has the right to refuse to issue a permit for geological exploration of subsoil for storage if the applicant has not fulfilled the requirements provided for in this article, and also if his geological exploration project does not indicate the need to study and use the subsoil space.

The refusal of the Subsoil Use Center to issue a permit for geological exploration of subsoil for storage must be justified and comply with the provisions of this Law and legislative acts.

Permits for geological exploration of subsoil for storage are subject to registration in the cadastre of the state subsoil fund.

Article 103. Permission to use subsurface space for underground storage

A permit for the use of subsoil space for underground storage is issued for the use of a subsoil area that does not contain a mineral deposit or contains insignificant mineral resources, including non-metallic minerals.

Permission to use subsoil space for underground storage is issued exclusively to legal entities on a first-come, first-served basis. Priority is given to the subsoil user who has conducted a geological study of the subsoil for storage in the relevant cadastral squares.

To obtain a permit for underground storage, the interested party submits an application to the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan, and the person planning to store hydrocarbons or conduct other types of underground storage submits an application to the Subsoil Use Center.

The application must contain the following information:

1) the full name of the applicant in accordance with the state registration certificate;

2) a document certifying that the applicant is a legally authorized entity;

3) detailed information on open cadastral squares specified in the permit for geological exploration of subsoil for storage or open cadastral squares requested by the applicant, including a map of the appropriate scale indicating their location and coordinates;

4) a geological report containing the characteristics of the underground structure, the characteristics of its isolation, the type of rock, the depth of occurrence and the effective capacity of the reservoir bed, its area, the porosity coefficient, the characteristics of the underlying and overlying aquiclude, the rate of natural groundwater flow, qualitative and quantitative indicators, mining, special engineering-geological, hydrogeological and environmental conditions of disposal, storage and discharge;

5) characteristics of harmful, toxic substances, solid and liquid waste, wastewater and industrial water, indicating the name of the product, technical production or process in which it is formed, its physical characteristics, full chemical composition, content of toxic components, fire hazard, explosion hazard, solubility, compatibility with other substances during storage, the main radionuclides-pollutants, their activity, as well as the characteristics of the transportation system;

6) the decision of the State Commission on Mineral Reserves on the validity of the selection of the requested subsoil area for its use in accordance with the specified purpose;

7) an underground storage project that has passed state environmental and sanitary-epidemiological examination;

8) information on the financial, professional and technical capabilities and capacities of the applicant in accordance with the underground storage project;

9) a plan for eliminating the consequences of subsoil use;

10) a document confirming payment of the fee for consideration of the application.

The process of reviewing an application and issuing a permit for the use of subsoil space must not exceed twenty days.

The fee for consideration of the application for issuance of a permit for underground storage is determined by legislative acts. The fee is non-refundable.

When considering an application, the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan and the Subsoil Use Center, as applicable, shall consider the financial, professional and technical capabilities and abilities of the applicant to carry out the proposed underground storage activity, as well as the technical and operational aspects of underground storage for completeness, feasibility and compliance with this Article.

In cases where deficiencies are discovered in the underground storage project submitted in accordance with paragraph 7 of part four of this article, the Subsoil Use Center, the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan, the Ministry of Health of the Republic of Uzbekistan or the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan, in appropriate cases, may require the applicant to eliminate the deficiencies within a reasonable time.

Upon receipt of such a request, the applicant has the right to withdraw their application, amend it, or provide a written explanation of the inappropriateness of making changes. If the applicant amends their application or provides a written explanation of the inappropriateness of making changes, the state body will consider such a response and provide its response within twenty days.

The applicant may request a hearing to present its position, and the state body may require the applicant to appear in person to answer questions on the justification. In this case, the Subsoil Use Center shall convene a hearing with the applicant and the relevant state body to consider the applicant's arguments within fifteen working days. The state body shall not raise new issues that may have been known at that time and that were not included in its initial consideration under the process described in this part. The process described in this part shall be applied several times until the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan or the Subsoil Use Center, as applicable, is ready to approve the permit or the applicant finally withdraws its application.

The Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan or the Subsoil Use Center have the right to refuse to issue a permit for underground storage if the application or documents attached thereto do not meet the requirements provided for in this article.

When issuing a permit for underground storage, a corresponding entry is made in the cadastre of the state subsoil fund.

Article 104. Validity period of permits for underground storage

A permit for geological exploration for storage shall be issued for a period not exceeding two years. The validity period of a permit for geological exploration for storage may be extended once for two years in accordance with the procedure set out in Article 110 of this Law.

A permit for underground storage is issued for a period of no more than twenty-five years.

The validity period of the underground storage permit may be extended several times for a period not exceeding the initial validity period of the permit, in accordance with the procedure provided for in Article 110 of this Law. In the case of an underground storage permit issued by the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan, it performs the functions of the Subsoil Use Center in accordance with Chapter 11 of this Law.

Article 105. Underground storage project

The underground storage project defines the conditions and parameters for the use of subsurface space.

The instructions for drafting an underground storage project are developed and approved by the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan in agreement with the Ministry of Mining and Geology of the Republic of Uzbekistan.

The underground storage project includes:

1) the purpose of using the subsoil space;

2) the period of use of the requested subsoil plot;

3) description of the object;

4) a description of the products to be stored, including any possible hazardous or toxic substances, solid or liquid waste and industrial water, indicating the name of the product, the technology or process by which it is formed, its physical characteristics, full chemical composition and content of any toxic components, solubility, compatibility with other substances during storage, the main and any contaminating radionuclides and their activity;

5) information on the proposed operation, including geotechnical storage conditions, pressure, fire hazard, explosion hazard, groundwater contamination, subsidence and a description of the transportation system.

The format and special conditions for drawing up an underground storage project are determined by legislative acts.

Any changes to the underground storage project are subject to state environmental and sanitary-epidemiological examinations.

Article 106. Rights and obligations of subsoil users who have a permit for underground storage

The use of subsurface space for underground storage without a permit for geological exploration for underground storage or a permit for underground storage is prohibited.

After a subsoil user who has a permit for geological exploration for underground storage has conducted the necessary environmental assessment and received a positive conclusion from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan, he has the right to carry out the activities envisaged by the geological exploration project submitted in accordance with Article 102 of this Law.

A subsoil user who has a permit for underground storage is obliged to ensure:

1) optimality and safety of the technical means used;

2) protection of the subsoil from manifestations of dangerous man-made processes;

3) reliable accounting during storage or disposal of solid, liquid and radioactive waste, harmful toxic substances, discharge (injection) of waste, industrial and technical waters;

4) the reliability and safety of geological information, including laboratory research and analysis data.

The subsoil user is obliged to comply with the requirements of Chapter 15 of this Law in terms of drawing up, updating and complying with its plan for eliminating the consequences of subsoil use.

A subsoil user who has a permit for underground storage has the right to use a subsoil plot to carry out the following work:

1) placement and operation of underground storage facilities for oil and gas, gas and oil products;

2) placement and (or) operation of underground structures for the storage or disposal of solid, liquid and radioactive waste, harmful toxic substances, discharge (injection) into the subsoil of waste, mining waste, industrial and technical waters;

3) injection of water into the subsoil for the artificial replenishment of groundwater reserves, including the construction and (or) operation of underground structures intended for these purposes.

The types of work provided for in part five of this article must be carried out in accordance with the approved underground storage project.

Article 107. Reporting on underground storage

The entire underground storage process work is documented with detailed description in the underground storage project.

When using subsoil space, reports on the fulfillment of the conditions for the implementation of the requirements of the underground storage project and on the condition of the object located in the subsoil space and the changes observed in it are submitted to the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan or to the Subsoil Use Center.

The form and content of such reports are determined by legislative acts.

Chapter 11. General provisions on permits for the main types of activities in the field of subsoil use

Article 108. Use of subsoil resources within one territory by different subsoil users

Different subsoil users do not have the right to carry out subsoil use work within the same cadastral squares (hereinafter referred to as the combined territory), unless otherwise established by this Law.

A permit for the right to use subsoil areas may be issued for the same cadastral squares as another permit for another type of subsoil use, provided that the activity carried out under the second permit will be carried out at a depth that will not affect the activity carried out under the existing permit. In any case, issuing another permit for cadastral squares that are also provided for in the existing permit is prohibited on areas located within a radius of five hundred meters from any underground structures (wells, pits) and their communication corridors.

A permit for subsoil use may be issued for the same cadastral areas as those specified in another permit, if the activity carried out under the second permit is carried out only at a depth at which the activity under such permit does not affect the existing permit. In areas closer than five hundred meters to any underground facilities (wells, shafts) and their communication corridors, it is prohibited in all cases to issue another permit covering the same cadastral areas as the previously valid permit.

In such cases, the applicant, in order to obtain a permit for cadastral plots for which a previously issued permit is valid, is required to submit to the Subsoil Use Center and the current subsoil user evidence of reasonable satisfaction that the issuance of such a new permit for the cadastral plot provided for by the current permit will not interfere with the activities of the existing subsoil user.

The procedure for carrying out activities for subsoil users in a combined territory is determined by an agreement concluded between them. The agreement defines the conditions and procedure for carrying out all or individual types of subsoil use work in a combined territory.

The agreement is concluded in simple written form and is submitted by subsoil users to the Subsoil Use Center and the relevant local executive authorities within five working days from the date of its conclusion.

The agreement may provide for reasonable and proportionate compensation for expenses incurred by one of the subsoil users.

Unless otherwise provided by this Law, if subsoil users fail to reach an agreement on the procedure for operating in a combined territory, priority for conducting work in such territory shall be given to the subsoil user with a previously issued permit.

Article 109. Re-registration of a permit for the right to use subsoil areas

A permit for the right to use subsoil areas may be reissued in the event of:

1) change of name or reorganization of the subsoil user;

2) changes in the types of minerals specified in the permit;

3) extension of the permit validity period;

4) changes in the cadastral squares specified in the permit;

5) assignment of the rights of the subsoil user, provided for by the permit, to another authorized person, including by providing a pledge or other security.

The permit is reissued by the Subsoil Use Center within a period not exceeding twenty working days from the date of receipt of the application with the necessary supporting documents.

The Subsoil Use Center charges a fee for reissuing a permit in the amount of fifty percent of the amount paid for reviewing the permit application. The fee is non-refundable.

When reissuing a permit for the right to use subsoil areas, a corresponding entry is made in the register of permits of the state subsoil fund cadastre.

Article 110. Extension of the validity period of a permit for the right to use subsoil areas

An application for an extension of the validity period of a permit for the right to use subsoil areas is submitted to the Subsoil Use Center during the last year before the expiration of the permit.

In an application for extension of the permit, the subsoil user must submit a document confirming that he is an authorized person. The form of the application is determined by the Subsoil Use Center.

An application for an extension of the validity period of a permit for geological exploration must include information on a fifty percent reduction in the number of cadastral squares specified in the permit, including a large-scale map that clearly shows the areas of the subsoil plot included in the permit that the subsoil user is refusing, as well as the plots that will remain in its use.

In an application for an extension of the validity period of a permit for the extraction of minerals or hydrocarbons, it is necessary to indicate:

1) evidence confirming the current relevance of the main project parameters;

2) evidence confirming that the activity in the field of subsoil use, provided for by the relevant and approved work plan, has been carried out or is to be carried out;

3) evidence confirming the following:

(a) in the case of mining activities, evidence is provided that such activities have been carried out for at least two years out of the last ten years of the permit's validity;

b) in the case of hydrocarbon production, evidence is provided that such activity has been carried out for at least eight years out of the last ten years of the permit's validity;

4) an updated project for the development of the deposit (if necessary), as well as an updated preliminary plan for the elimination of the consequences of subsoil use or a plan for the decommissioning of the subsoil area;

5) the estimated minimum amount of expenses that the applicant plans to spend.

The Subsoil Use Center shall notify the subsoil user of the extension or refusal to extend the validity period of the permit within fifteen working days from the date of receipt of the application for extension of the validity period of the permit.

If during the period of consideration of the application for extension of the permit for the main types of activities in the sphere of subsoil use the permit expires, the permit shall remain in effect for the period of such consideration. The calculation of the period of extension of the permit shall begin on the day following the last day of the permit's validity.

The extension of the validity period of a subsoil use permit is carried out by issuing a new permit to the subsoil user in accordance with Article 109 of this Law.

Refusal to extend the validity of a subsoil use permit must be motivated. Refusal based on conditions not provided for by the provisions of this article is prohibited.

An extension of the validity period of a permit for the use of subsoil areas is refused if:

1) the declared period of extension of the permit does not comply with the requirements of Articles 42 , 54 , 65 , 73 or 86 of this Law;

2) the deadline for filing an application for an extension of the validity period of the permit, as provided for in this article, has been violated;

3) the requirements established by this article are not met;

4) there are significant violations of the terms of use of the subsoil plot that were not corrected by the subsoil user prior to filing an application to extend the validity period of the permit for the right to use the subsoil plot.

If an application for an extension of the validity period of a permit for the right to use subsoil areas is rejected, the original validity period of the permit remains in force until its expiration.

Article 111. Assignment of rights provided for in the permit for the main types of activities in the sphere of subsoil use

A person who has a permit for geological exploration of the subsoil and for the extraction of minerals has the right to transfer his rights provided for by the permit, including providing them as collateral or other security to another person, if that person assumes obligations to fulfill the conditions provided for in the permit.

The transfer of rights provided for in a permit for the main types of activities in the field of subsoil use acquired as a result of an auction is prohibited for two years from the date of issue of such permit.

In the event of a proposed assignment by a subsoil user of rights provided for by a permit (in whole or in part), or a change in control of a subsoil user or its beneficial owner, or the intention of a subsoil user to provide its rights provided for by a permit as collateral or other security, the subsoil user must provide to the Subsoil Use Center no less than thirty days prior to the proposed assignment of rights or change of control or its beneficial owner or the provision of rights as collateral or other security information about the person in respect of whom the assignment of rights is carried out or the person assuming control or its beneficial owner or the person to whom the collateral or other security is provided in accordance with the requirements for the application for the issuance of a permit.

The Subsoil Use Center shall notify the subsoil user of the approval or refusal of a new subsoil user within twenty working days from the date of receipt of the information.

If the Subsoil Use Center is satisfied that the transferee, new controlling person or its beneficial owner, pledgee or holder of other security is not deprived of the right to hold such a permit on the basis of any provision of this Law and has the necessary financial and technical capabilities to fulfill its obligations under the permit, then the assignment of rights, change of control or its beneficial owner, provision as collateral or other security shall be accepted, and the permit shall be reissued in the manner established by Article 109 of this Law, within five working days from the date of notification by the Subsoil Use Center of the completion of the assignment of rights, change of control or its beneficial owner or provision as collateral or other security.

In the event of a pledge or other security being provided, the name of the approved pledgee or other holder of the security shall be indicated in the reissued permit. In cases where a pledge or other security is provided to a bank or other creditor that does not have the necessary technical capacity to fulfill its obligations under the permit, the Subsoil Use Center must ensure that the bank or other creditor is a stable institution. The assumption of the rights of the subsoil user may be directly implemented by a bank or other creditor only if it has the necessary financial and technical capacity to fulfill the obligations provided for in the permit.

In the event of a proposal by a bank or other creditor to appoint a person to accept on its behalf the rights of a subsoil user (to exercise its right to intervene), such person is subject to approval in the manner provided for in parts five , six and seven of this article. When exercising the right of pledge or other security by a pledgee or holder of security that has been approved in accordance with this article, the permit shall be reissued in the name of the approved pledgee or holder of other security.

The refusal of the Subsoil Use Center to accept the assignment of rights, change of control or its beneficial owner, pledge or other security must be justified and comply with the provisions of this Law and legislative acts.

When reissuing a permit for the main types of activities in the field of subsoil use, the new subsoil user assumes all rights and obligations associated with the permit, including for permits for geological exploration, acquires the exclusive right to obtain a permit for the extraction of minerals, and the rights and obligations of the previous subsoil user are terminated.

Article 112. Refusal of a permit for the main types of activities in the sphere of subsoil use or part thereof

Taking into account the provisions of this Law, at any time before the expiration of the permit for the main types of activities in the field of subsoil use, the subsoil user has the right to refuse the entire permit by sending a notification to the Subsoil Use Center.

The subsoil user may also request the Subsoil Use Center to exclude any cadastral squares from the permit, provided that the remaining subsoil cadastral squares remain adjacent and are located in such a way that they have a common connection point along the entire length of at least one of their sides.

The following documents are attached to the subsoil user’s application to renounce a part of a subsoil plot:

1) information about the cadastral squares that the subsoil user refuses and those that he retains, if any, including a geological map of a sufficiently large scale, on which the territories of the subsoil plot included in the permit that the subsoil user refuses are clearly indicated, as well as those that he will retain;

2) indication of the date from which, at the request of the subsoil user, the refusal comes into force;

3) an act on the liquidation of the consequences of extraction in the relevant cadastral squares, which the subsoil user refuses.

The refusal of a part of a subsoil plot entails the re-registration of the permit in connection with a change in the boundaries of the subsoil plot in the manner established by Article 109 of this Law.

The refusal of the Subsoil Use Center to accept cadastral squares that the subsoil user refuses must be justified and comply with the provisions of this Law and legislative acts.

Article 113. Restriction or suspension of a permit for the right to use subsoil areas

A subsoil user, in addition to activities within the framework of a permit for collecting samples of collection materials, has the right to temporarily suspend subsoil use work. The suspension period is included in the general term of the permit. Suspension of work is not considered grounds for suspending the fulfillment of subsoil use obligations, with the exception of temporary conservation of mining production or oil and gas operations in accordance with the established procedure.

The right to use a subsoil plot may be limited or suspended by the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan or by inspectors of the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan within the framework of a permit in accordance with the powers provided for in Articles 14 and 15 of this Law in the following cases:

1) the emergence of a threat to the life or health of the population or the environment in the area of influence of the work as a result of subsoil use;

2) a material violation by a subsoil user of a project of works directly related to activities in the sphere of subsoil use or the provisions of this Law, after notification of them and the elimination of which within a certain time makes it possible to continue works related to subsoil use in the future;

3) when the reserve is no longer sufficient to eliminate the consequences of subsoil use and has not been replaced in accordance with Article 151 of this Law.

Permission for the main types of activities in the field of subsoil use may be limited or suspended.

Permits for the main types of activities in the sphere of subsoil use are restricted or suspended for a period of no more than ten days on the basis of orders from state bodies specified in part two of this article.

In special cases related to the completion of work to eliminate violations, the suspension of the right to use subsoil may be extended for a period not exceeding thirty days, and in the cases provided for in paragraph 3 of part two of this article, for a period not exceeding sixty days.

Article 114. Termination of a permit for the right to use subsoil areas

The validity of the permit for the right to use subsoil areas shall be terminated in the event of:

1) expiration of the permit;

2) the subsoil user’s refusal of permission in accordance with Article 112 of this Law;

3) cancellation of the permit in accordance with Article 115 of this Law;

4) the death of an individual or, taking into account part four of this article, the liquidation of a legal entity to which the permit was issued.

Termination of a permit for the right to use subsoil areas does not entail termination of the obligations of the subsoil user that have not been fulfilled, including the elimination of the consequences of subsoil use, including in accordance with the procedure established by this Law, or liability for any actions or inactions during the term of the permit.

The termination of the permit shall not affect any legal proceedings initiated or ongoing against the subsoil user on issues of liability that arose prior to the expiration of the permit, or against the subsoil user prior to the cancellation of the permit.

Liquidation of a subsoil user - a legal entity, is permitted only after the submission of an act of liquidation of the consequences of subsoil use to the Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan.

If a subsoil user refuses a permit for the extraction of minerals, the remaining mineral reserves and man-made mineral formations in the subsoil are returned to the state balance by drawing up a corresponding act signed by the subsoil user, representatives of the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan and the Subsoil Use Center.

When a permit for the main types of activities in the field of subsoil use is terminated, a corresponding entry is made in the register of permits of the state subsoil fund cadastre.

Article 115. Cancellation of permits for main types of activities in the sphere of subsoil use

Permission for the main types of activities in the field of subsoil use shall be cancelled in the event of:

1) failure to submit within the established timeframes a geological study project and a deposit development project in accordance with a permit issued based on the results of an auction, tender, or on the basis of an act of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan in accordance with this Law;

2) failure of the subsoil user to submit for two years in a row the reports provided for in this Law;

3) failure by the subsoil user to pay the regular annual fee specified in Article 161 of this Law for at least two years for a permit for geological exploration;

4) failure of the subsoil user to fulfill obligations for annual minimum expenses for subsoil use for two consecutive years;

5) a material violation by a subsoil user of its geological exploration project, deposit development project, work plan or underground storage project directly related to the relevant activity in the sphere of subsoil use, which are not subject to elimination or which, if they are subject to elimination, are not eliminated within ninety days from the date of notification of this;

6) a material breach by the subsoil user of its environmental obligations that cannot be eliminated, or which, if they can be eliminated, are not eliminated within ninety days from the date of notification of their elimination;

7) violations of the fulfillment of obligations to finance the elimination of the consequences of subsoil use, as provided for in Articles 151 and 152 of this Law, which are not eliminated within thirty days from the date of notification of their elimination;

8) failure by a subsoil user, for two consecutive years, to comply with the requirement for a minimum share of local content in works and services used in the extraction of solid minerals or oil and gas operations for the extraction of the main types of solid minerals, with the exception of permits for man-made mineral formations or permits for the extraction of hydrocarbons;

9) failure by a subsoil user, for two consecutive years, to comply with obligations to finance the training of local personnel and research, scientific and technical and (or) experimental design work on the territory of the Republic of Uzbekistan within the framework of permits for the extraction of the main types of solid minerals, with the exception of permits for man-made mineral formations or permits for the extraction of hydrocarbons in accordance with Chapter 16 of this Law;

10) obtaining permission through fraud, including through the provision of knowingly false information;

11) provision by the subsoil user of false reports or information regarding the quantity or quality of extracted minerals;

12) failure by the subsoil user to pay duties, fees, charges, fines or taxes for the use of subsoil, due and payable under the permit, which are not the subject of the dispute, and which are not paid within thirty days after notification of their payment.

The permit may not be revoked for the commission of the offences provided for in Part Three of Article 163 of this Law, if the offender has complied with the penalty applied to him.

The submission of a representation to the Subsoil Use Center by the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan or another controlling body serves as the basis for taking measures in accordance with the law to cancel the permit for the main types of activities in the sphere of subsoil use.

The decision to cancel the permit for the main types of activities in the sphere of subsoil use is taken by the Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan, respectively. Cancellation of the permit for the main types of activities in the sphere of subsoil use on other grounds not provided for in this article is not allowed.

In the event of a decision to cancel a permit for the main types of activities in the field of subsoil use, the Subsoil Use Center or the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan shall send a corresponding notification to the subsoil user within one working day, and a corresponding entry shall be made in the permit cadastre.

The cancellation of a permit for the main types of activities in the sphere of subsoil use shall not be grounds for terminating the obligations of the subsoil user that have not been fulfilled, including obligations to eliminate the consequences of subsoil use in the manner established by this Law.

The cancellation of a permit shall not affect any obligations that arose for the subsoil user prior to the moment of cancellation of the permit, or any legal proceedings initiated or ongoing against the subsoil user prior to the moment of cancellation of the permit.

The subsoil user is obliged to carry out the conservation of mine workings and the elimination of the consequences of subsoil use in the manner established by this Law.

Subsoil users have the right to appeal decisions to revoke permits in court.

Chapter 12. Artisanal and Small-Scale Mining

Article 116. Territory of a subsoil plot provided for artisanal mining

The external boundaries of the territory of a subsoil plot for artisanal mining of minerals (artisanal mining plot) must form a rectangle. If the natural features or boundaries of another subsoil plot do not allow the external boundaries of the territory of the corresponding artisanal mining plot to be determined in the form of a rectangle, the territory of such subsoil plot may have the form of a triangle (taking into account the square shape of cadastral squares) or a quadrangle, at least two opposite sides of which must be parallel to each other.

The area of a subsoil plot for artisanal mining of minerals must be no less than one hectare and no more than five hectares. At the same time, the area of a subsoil plot belonging to one subsoil user or used within the framework of one project must be no more than one cadastral square.

The subsoil area provided for artisanal mining is determined by the Subsoil Use Center in agreement with the Council of Ministers of the Republic of Karakalpakstan and the regional khokimiyats.

The list of subsoil areas proposed for artisanal mining of minerals is approved annually by the Subsoil Use Center.

The territory allocated for artisanal mining is included in the cadastre of the state subsoil fund.

Article 117. Eligibility for artisanal mining

Permits for artisanal mining are issued only to authorized persons, in particular, individuals who are citizens of the Republic of Uzbekistan, have the status of an individual entrepreneur and legal entities in whose authorized capital (charter capital) the share of an individual who is a citizen of the Republic of Uzbekistan is seventy percent or more.

One person may not directly or indirectly hold more than one permit for the right to use a subsoil plot for artisanal mining.

In order to carry out prospecting activities, at least seventy percent of the employees of the legal entity of the subsoil user must be citizens of the Republic of Uzbekistan.

Article 118. Permission for artisanal mining

Artisanal mining is carried out on the basis of an artisanal mining permit.

A permit for artisanal mining is issued only based on the results of an auction held on an electronic trading platform.

Applicants for an artisanal mining permit must provide the following information to participate in the auction:

1) the full name of the applicant, in accordance with the state registration certificate;

2) a document certifying that the applicant meets the requirements of Article 117 of this Law;

3) details of the requested open cadastral square on the site allocated for artisanal mining, in accordance with Article 116 of this Law.

Funds from the sale of the right to use subsoil areas for artisanal mining are distributed in the manner established by legislative acts.

The period for reviewing documents and issuing a permit for artisanal mining must not exceed twenty working days.

The form of the permit for artisanal mining is determined by legislative acts. The permit for artisanal mining contains the terms of use applicable to the activity, determined by the Subsoil Use Center depending on the location of the site. The terms of use are provided in the appendix to the permit.

Any transfer (including by sublease or assignment) of rights to artisanal mining is not permitted.

When a permit for artisanal mining is issued, a corresponding entry is made in the cadastre of the state subsoil fund.

Article 119. Validity period of a permit for artisanal mining and the procedure for its extension

A permit for artisanal mining is issued for a period of three years.

The validity period of the artisanal mining permit may be extended by agreement with local executive authorities once for three years. An application for an extension of the validity period of the artisanal mining permit is submitted to the Subsoil Use Center during the last year before the expiration of the artisanal mining permit.

An application for an extension of an artisanal mining permit must contain the same information as the original application.

An application for an extension of the validity period of a permit for artisanal mining is considered within twenty working days.

If during the period of consideration of the application for extension of the validity of the permit for artisanal mining the permit expires, the permit term shall continue to be valid during the period of such consideration. The calculation of the period of extension of the permit shall commence on the day following the last day of the permit term.

The validity period of a permit for artisanal mining is extended by issuing a new permit to the subsoil user.

The validity period of a prospecting permit cannot be extended if:

1) the requested extension period does not meet the requirements of this article;

2) the deadline for filing an application for an extension of the validity period of the permit, as provided for in this article, has been violated;

3) there is no need to carry out additional work related to artisanal mining;

4) the subsoil user did not immediately eliminate the violations of the terms of subsoil use after receiving notification of this;

5) the subsoil user has failed to fulfill the obligations to sell the extracted precious metals and precious stones, as provided for in Article 121 of this Law.

Article 120. Carrying out work on artisanal mining

Subsoil users who have a permit for artisanal mining are required to comply with the conditions stipulated in the permit. Artisanal mining is carried out manually or using low-power equipment, including stripping operations, sand and soil washing operations, and other related operations.

A subsoil user who has a permit for artisanal mining does not need to develop a project for artisanal mining or conduct other coordination and approval for its subsoil areas.

When conducting artisanal mining, the subsoil user has the right to:

1) use the mechanization equipment owned by the subsoil user in the form of one truck with a lifting capacity of no more than ten tons, drilling equipment, an excavator and (or) a bulldozer with a bucket capacity in total of no more than two cubic meters;

2) carry out artisanal mining (without driving underground mine workings) to a safe (permissible) depth:

a) in placer areas - to bedrock without the need for underground mining;

b) on the root sections - up to two meters of deepening. If the mountain passages are in the form of a staircase, then in this case the total depth is allowed up to six meters. In this case the height of each step should not exceed two meters, and the width should not exceed zero point five tenths of a meter;

3) use exclusively crushing of ore and the gravity method of extracting precious metals.

On water fund lands and water bodies, artisanal mining should be carried out only by hand.

A subsoil user who has a permit for artisanal mining is obliged to:

1) carry out the reclamation of lands disturbed during artisanal mining operations and bring them into a condition suitable for further use;

2) comply with the restrictions on the use of mechanization equipment provided for in this article.

Subsoil users who have a permit for artisanal mining are prohibited from:

1) destroy the natural relief of the banks of reservoirs and rivers, the water resources of which are used for artisanal mining;

2) use excavators and bulldozers on water bodies and water fund lands located on the site of artisanal mining;

3) use chemical reagents and explosives;

4) to erect and construct capital structures;

5) remove soil and extracted rock mass from the area of artisanal mining.

In the case of using water resources, subsoil users are obliged to carry out water protection measures, as well as comply with other requirements for the protection of water bodies provided for by legislative acts.

The excavation of new mine workings is permitted only after the previous (abandoned) section of work has been filled in.

Before artisanal mining commences in any area that may be subject to environmental damage, subsoil users shall request an inspection of the said area by an inspector of the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan to confirm the damage caused to the environment. Any area for which the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan has not received such a request for inspection shall be considered undamaged.

A subsoil user who has a permit for artisanal mining is obliged, within thirty days from the date of expiration of the permit, to dismantle structures, temporary buildings and equipment and carry out reclamation of the land plot in accordance with the requirements of the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

Article 121. Special conditions for the use of subsoil areas for artisanal mining

The circulation of precious metals and precious stones, including activities related to their extraction, production and sale, is regulated by the legislation on precious metals and precious stones.

The sale or other transfer of precious metals obtained as a result of artisanal mining may be carried out only through specialized cash desks opened and operating in accordance with legislative acts, as well as to legal entities and individual entrepreneurs engaged in the production of jewelry and other products made from precious metals and precious stones.

Article 122. Reporting on artisanal mining

In case of artisanal mining of minerals, reports on compliance with the terms of use of subsoil areas and on the volumes of extracted and sold precious metals and precious stones are submitted to the Subsoil Use Center within thirty days after the end of the year or the termination of the permit, respectively. The form of the annual report on artisanal mining may be determined by legislative acts.

Article 123. Termination of a permit for artisanal mining

A permit for artisanal mining shall be terminated in the event of:

1) significant violation of requirements during the execution of artisanal mining operations;

2) violation by the subsoil user of the restrictions on the methods of conducting artisanal mining established by Article 120 of this Law;

3) concealment of mined precious metals, including failure to sell them for one year, or violation of the conditions for the sale and transfer of precious metals and precious stones provided for in Article 121 of this Law, including violation of the legislation on precious metals and precious stones;

4) failure of the subsoil user to submit the reports required in accordance with this Law for two consecutive years;

5) a material breach by the subsoil user of its environmental obligations that cannot be eliminated or that can be eliminated but is not eliminated within ninety days from the date of receipt of notification of their elimination;

6) obtaining permission through fraud, including through the provision of knowingly false information;

7) failure by the subsoil user to pay fees, fines or taxes for the use of subsoil due and payable under the permit, and failure to pay them within thirty days after receiving notification of their payment.

In cases of early termination of a permit for artisanal mining, the subsoil user is prohibited from obtaining a permit for artisanal mining or conducting artisanal mining for one year.

Early termination of the permit for artisanal mining shall be carried out by decision of the Subsoil Use Center on the grounds provided for in this article. Early termination of the permit on other grounds not provided for in part one of this article shall not be permitted. Until the decision is made by the Subsoil Use Center, artisanal mining activities shall be suspended at the request of the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan.

Subsoil users may appeal to the court if they disagree with the decision to early terminate the permit for artisanal mining.

If the court decides to deny the claim for early termination of the artisanal mining permit, the subsoil user has the right to carry out artisanal mining activities. In this case, the artisanal mining permit is extended for a period equal to the period for which artisanal mining was temporarily suspended in accordance with this article.

Article 124. Special provisions for the extraction of construction minerals and fillers for purposes not related to entrepreneurial activity

Landowners, land users and owners of land plots, in order to satisfy personal, household and other economic needs not related to the implementation of entrepreneurial activities, have the right to extract construction minerals and fillers within the boundaries of the land plots belonging to them.

If the purpose of using a land plot is the extraction and removal of construction minerals and fillers outside the boundaries of the given land plot, then their placement and (or) use is carried out in agreement with local executive authorities and the Subsoil Use Center.

The extraction of construction minerals and fillers in accordance with this article shall be carried out without the use of explosives, chemical reagents and toxic substances.

Construction minerals and fillers located within the boundaries of a land plot and used by landowners, land users or owners of land plots to satisfy personal, household and other needs not related to the implementation of entrepreneurial activities may not be alienated to another person.

The right to extract construction minerals and fillers arising in accordance with this article is inseparable from the right to a land plot.

The right to extract construction minerals and fillers shall arise and cease for owners of land plots, landowners and land users in accordance with this article simultaneously with the right of ownership of the land plot or the right of possession or use of the land plot.

For the extraction of construction minerals and fillers in accordance with this article, it is not necessary to obtain a permit, nor is it necessary to submit reports and other documents that are mandatory for persons using subsoil resources on the basis of a permit.

Chapter 13. Collection of samples of gemstone raw materials, paleontological remains and other geological collection materials

Article 125. Collection of samples of gemstone raw materials, paleontological remains and other geological collection materials and determination of the territory for its implementation

The collection of samples of gemstone raw materials, paleontological remains and other geological collection materials (hereinafter referred to as the collection of samples of collection materials) means the extraction of individual samples of gemstone raw materials, paleontological remains and other geological collection materials from natural outcrops, natural underground voids (caves), exhausted quarries, waste dumps of mining operations, as well as the collection of samples of collection materials in river floodplains without carrying out mining and other types of special work that violate the integrity of the subsoil.

Collection of samples of collection materials is carried out in separate areas and without the use of equipment other than hand tools.

Collected samples of collection materials in accordance with legislative acts are the property of legal entities and individuals and can be used by them for scientific, scientific-educational, commercial, artistic and other purposes.

The size of a subsoil plot for collecting samples of collection materials must not exceed four adjacent cadastral squares, which must be located so that the sides that have a common point of contact are united along the entire length of at least one of their sides.

Article 126. Permission to collect samples of collection materials

Collection of samples of collection materials is carried out on the basis of a permit.

A permit for collecting samples of collection materials is issued by the Subsoil Use Center to a legal entity or individual on a first-come, first-served basis.

The application of the interested party must contain:

1) full name of the applicant;

2) open squares requested for collecting samples of collection materials.

A permit for collecting samples of collection materials is issued for a period of two years. The validity period of a permit for collecting samples of collection materials is not extended.

The Subsoil Use Center has the right to refuse to issue a permit for the collection of samples of collection materials if the application does not meet the requirements provided for by this Law.

When a permit is issued for the collection of samples of collection materials, a corresponding entry is made in the cadastre of the state subsoil fund.

Article 127. Carrying out work on collecting samples of collection materials

The collection of samples of collection materials is carried out for the following purposes:

1) acquisition and replenishment of scientific collections of geological, mineralogical, paleontological and local history museums;

2) acquisition and replenishment of educational collections of educational institutions;

3) acquisition and replenishment of private geological and paleontological collections for scientific, educational and aesthetic purposes (with the exception of samples containing precious metals and stones).

The subsoil user is not required to provide a project for collecting samples of collection materials.

Provision of land plots of the surface of a cadastral square for the collection of samples of collection materials is not permitted.

When collecting samples of collection materials, mining and drilling operations and the use of various equipment that violate the integrity of the subsoil are prohibited.

The collection of samples of collection materials does not require state environmental expertise and approval from the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan, unless otherwise provided by legislative acts.

When the use of a subsoil site is terminated, no work is required to eliminate the consequences of subsoil use for collecting samples of collection materials.

The permit for collecting samples of collection material is not subject to assignment in favor of another person. Before the expiration of the permit for collecting samples of collection materials, the subsoil user has the right to refuse cadastral squares at any time by notifying the Subsoil Use Center in writing or electronically.

The return of a part of the subsoil plot for which a permit has been issued is carried out by reissuing a permit for the collection of samples of collection materials for the remaining cadastral squares, which must be adjacent.

Article 128. Reporting on the collection of samples of collection materials

A report on the fulfillment of the conditions for the use of subsoil areas during the collection of samples of collection materials shall be submitted by a person who has permission to collect samples of collection materials to the Subsoil Use Center within sixty days from the date of termination of this permission.

Chapter 14. Environmental protection, labor protection and safety in subsoil use

Article 129. General provisions for ensuring environmental safety in the use of subsoil resources

The use of subsoil resources, including the planning and design of production and other facilities, must be carried out in accordance with the requirements of environmental and other legislation.

The ecological state of the subsoil is ensured by standardizing maximum permissible emissions and waste, as well as by limiting or prohibiting certain types of subsoil use activities.

The use of subsoil is permitted only after the relevant environmental assessment has been carried out. Any person carrying out activities on a subsoil site must not intentionally or through negligence cause any material or serious damage to the environment or in any way interfere with or misuse any materials or equipment provided on or within the subsoil site for the purpose of ensuring environmental protection.

The use of subsoil and mineral resources is permitted only under the following conditions:

1) ensuring the comprehensive and economical use of subsoil and minerals and related natural resources during extraction, as well as preventing pollution of the environment and subsoil;

2) reclamation of lands disturbed by the extraction of minerals;

3) placement of waste rock and host rock dumps, tailings storage facilities, waste heaps, ensuring minimal harmful impact on the environment;

4) obtaining permits for special water use or special water consumption.

All subsoil users are obliged to bring the land plots of the surface of the cadastral square disturbed by them during subsoil use into a condition suitable for further use.

Permits for special water use or special water consumption issued in accordance with legislative acts are not required for the technologically inevitable flow of groundwater into mine workings or infrastructure facilities during the extraction of solid minerals or hydrocarbons.

The use of groundwater entering mine workings or infrastructure facilities is carried out in accordance with legislative acts.

The use and disposal of associated groundwater during the extraction of solid minerals or hydrocarbons is carried out in accordance with legislative acts.

Groundwater associated with hydrocarbon production and fluid flowback from hydraulic fracturing must be used in accordance with applicable laws.

In cases provided for by this Law, the use of subsoil without a positive conclusion of the state environmental assessment is prohibited.

Article 130. Inspection of subsoil use activities

State control in the field of geological exploration, use and protection of subsoil and the environment is carried out by the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan and environmental inspectors of the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan.

An inspector has the right, at reasonable times of the day or night and with appropriate permission, to enter, inspect and examine a subsoil use project without creating unnecessary obstruction or interference with the operation of such project.

The inspector has the right to conduct a study and determine the status of a subsoil use project and to verify the subsoil user's compliance with obligations, including labor protection, safety, environmental protection standards, as well as compliance with reporting and financial obligations.

For the purposes of conducting the inspection, the inspector may require that the head of the subsoil use project or another senior official, as well as any other official or employee that the inspector deems necessary, accompany him during the inspection.

During the inspection, the inspector may take samples of minerals and other substances from the subsoil use project, make extracts or copies of documents, and photograph the subsoil use object. The inspector issues a receipt for any item or document taken or removed in the course of performing his official duties.

Article 131. State monitoring of the state of the subsoil

State monitoring of the subsoil condition is a system of observations of the subsoil condition for the timely detection of their changes, assessment, prevention and elimination of the consequences of negative processes. State monitoring of the subsoil condition is an integral part of the comprehensive system of state environmental monitoring.

State monitoring of the state of the subsoil is carried out according to:

1) dangerous exogenous geological processes;

2) endogenous geological processes;

3) mineral deposits;

4) subsoil areas used for purposes not related to the extraction of minerals.

State monitoring of the state of the subsoil is carried out at the republican, regional and local levels.

State monitoring of the state of the subsoil at the republican and regional levels is carried out:

1) The Ministry of Mining and Geology of the Republic of Uzbekistan - in terms of exogenous geological processes and deposits of solid minerals;

2) The Ministry of Energy of the Republic of Uzbekistan - in terms of hydrocarbon deposits;

3) The Institute of Seismology of the Academy of Sciences of the Republic of Uzbekistan - in terms of endogenous geological processes;

4) The Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan - in terms of subsoil space used for purposes not related to the extraction of minerals.

The methodology and frequency of state monitoring of the state of the subsoil at the republican and regional levels are approved by the relevant ministries and the Academy of Sciences of the Republic of Uzbekistan.

State monitoring of the state of the subsoil at the local level is carried out by the subsoil user on the basis of observations of the geological environment within the provided contours, in accordance with the documents regulating activities in the subsoil area in use.

The results of state monitoring of the state of subsoil, as well as local monitoring, are provided by the relevant monitoring body to the Subsoil Use Center for inclusion in the cadastre of the state subsoil fund to account for the state of the subsoil plot.

Information obtained during state monitoring of the state of the subsoil by the competent authorities and organizations specified in this article shall be submitted to the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan and the Ministry of Emergency Situations of the Republic of Uzbekistan at least once a year.

In the event of detection of particularly dangerous changes and exceeding the maximum permissible indicators of such processes of change in the state of the geological environment, information is promptly submitted to the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan and the Ministry of Emergency Situations of the Republic of Uzbekistan.

Conducting state monitoring of the state of subsoil at the republican and regional levels is financed from the republican budget of the Republic of Uzbekistan, and at the local level - from the funds of the subsoil user.

Article 132. Obligations of a subsoil user to conduct an environmental assessment and obtain a positive conclusion on it for the performance of certain subsoil use work

In addition to the requirements for conducting state environmental assessment established by the Law of the Republic of Uzbekistan "On Environmental Assessment", the subsoil user is obliged to conduct an environmental assessment in relation to the following subsoil use works:

1) geological exploration of the subsurface, which involves more than random disturbance of the land (for example, digging ditches, drilling pilot holes and seismic surveys);

2) extraction and processing of the main types of minerals;

3) extraction and processing of non-metallic minerals;

4) work on geological exploration and production of hydrocarbons, involving hydraulic fracturing, including associated deep wells, as well as scientific testing;

5) all types of work on drilling wells for hydrocarbons;

6) the removal, including the removal by wells, of geogenic waters during oil and gas operations, if such work is not provided for by this article;

7) construction, installation and operation of hydrocarbon processing and transportation facilities;

8) mining waste sites with an area exceeding five hectares;

9) the formation of sludge ponds and wastewater ponds, the area of which exceeds two hectares;

10) placement of contaminated soil or other hazardous material, except for mining waste or sludge ponds;

11) waste disposal facilities that may result in significant potential loss of life, serious hazard to human health or serious hazard to the environment;

12) the use of subsoil areas for purposes not related to the extraction of minerals, involving the storage of hazardous and toxic substances;

13) construction and operation of underground storage facilities for the disposal of radioactive substances.

Article 133. Requirements for conducting environmental assessment

When conducting an environmental assessment, the subsoil user is obliged to comply with the norms and requirements of the Law of the Republic of Uzbekistan “On Environmental Assessment” and, if applicable, must:

1) ensure the application of environmentally safe planning procedures and the use of appropriate technologies when carrying out subsoil use work;

2) establish and implement an appropriate monitoring system for environmental control, fire and, if necessary, radiation safety at the site of mineral extraction and/or at the relevant processing plants;

3) develop a plan to prevent accidents and incidents;

4) conduct an analysis of the level of compliance with the requirements of legislation on atmospheric air protection;

5) determine and control the levels of noise and vibration pollution at the subsoil site and at processing plants;

6) determine the impact of subsoil use and processing work on natural objects and complexes of protected natural areas located near the land plot;

7) study and monitor the flora and fauna in the subsoil area with the involvement of appropriate qualified personnel;

8) on agricultural lands, conduct agrochemical studies of the soil of the subsoil use site in order to determine the fertile soil layer, and, if necessary, remove and remove such soil to specially designated places;

9) study the vegetation of the subsoil area in order to identify any plant species listed in the Red Book of the Republic of Uzbekistan, or species of wild plants that are endangered;

10) draw up a detailed plan for the elimination of the consequences of subsoil use, including a plan for the restoration of disturbed lands after open-pit mining (or other mining activities), in accordance with this Law;

11) determine any potential negative and (or) harmful impact on the health of the population living in the subsoil use area or in the immediate vicinity of the subsoil use site.

When conducting an assessment of the results of the environmental assessment, the Subsoil Use Center is obliged to:

1) notify the public about the environmental impact assessment;

2) if the conduct of such an environmental assessment requires public participation, promptly inform representatives of the public living in the immediate vicinity of the subsoil use site about this by means of public announcements and take into account any reasonably and timely submitted proposals on this issue.

The subsoil user sets out in detail the results of the environmental assessment in a special report. After receiving a positive conclusion from the state environmental assessment and the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan, the subsoil user develops an environmental management plan and submits it to the Subsoil Use Center as part of the approval process for the relevant work plan.

The environmental management plan provided for in Part Three of this Article must be consistent with the results of the environmental assessment and describe the potential risks and environmental impacts of the proposed subsoil use activities, including measures to prevent, monitor, mitigate the consequences of subsoil use, and be consistent with the corrective measures that are planned to be implemented to prevent or suppress the occurrence of any incident with environmental consequences.

The content and format of the environmental management plan are determined by legislative acts.

Depending on any change in the content and volume of work on subsoil use, the subsoil user may make changes to the environmental management plan.

Article 134. Special obligations to conduct an environmental assessment and obtain a positive conclusion on it for conducting uranium mining activities

Conducting an environmental assessment for uranium mining activities also includes a radiological environmental assessment, which covers all radiologically related stages of uranium mining activities, including those related to the cessation of operation of any facility for the handling of radioactive waste from mining activities and the restoration of the subsoil use site.

The subsoil user describes in detail the results of the environmental assessment in a special report, the format and content of which are determined by legislative acts.

In order to demonstrate the level of protection of the population and the environment and to provide the necessary assurances to the competent authority exercising state control in the field of radiation safety and any other interested parties that the applicable safety requirements will be fully met, any person wishing to obtain a special permit for the construction of any new uranium ore processing plant or mining waste management plant or for the reconstruction of any existing such plant must develop and submit for approval to the competent authority exercising state control in the field of radiation safety a radiation safety justification and a supporting radiation safety assessment.

The radiation safety justification and radiation safety assessment specified in Part Three of this Article must describe in detail all aspects related to radiation safety in the subsoil area, the design and operation of the relevant facility, as well as measures for management and regulatory control.

Any person seeking to obtain a mining permit for the construction of any new uranium ore processing facility or any mining waste management facility or for the redevelopment of any such existing facility shall ensure that:

1) a detailed radiation safety assessment sufficient to support the conclusions reached and provide an adequate basis for independent verification and review by regulatory authorities;

2) submit a new radiation safety justification and radiation safety assessment in the event of any planned significant change at the relevant production facility;

3) conducting an independent expert assessment and verification of the safety justification and safety assessment in order to increase the level of confidence before their submission to the authorized bodies exercising state control in the field of radiation safety.

The subsoil user is obliged to:

1) review and, if necessary, amend and supplement the safety justification and safety assessment every three years, taking into account all available data on operating experience;

2) submit a new safety justification and safety assessment in each case where a significant change to the relevant facility is planned.

The subsoil user submits for consideration and approval to the authorized body exercising state control in the field of radiation safety, any changes to the justification of radiation safety and the assessment of radiation safety.

The subsoil user is obliged to review the radiation safety justification and radiation safety assessment no later than one year before the planned date of termination of uranium operations in order to ensure that its content proportionately reflects the conditions of the relevant facility at the stages of eliminating the consequences of subsoil use and after the implementation of measures to eliminate the consequences of subsoil use.

For those parts of the project that are subject to phased restoration, the subsoil user shall adjust the radiation safety justification and radiation safety assessment accordingly so that its content adequately reflects the changed conditions.

The subsoil user is obliged to retain the radiation safety justification and radiation safety assessment until the complete decommissioning of the production facility, completion of the ecological restoration of the site and the removal of the relevant facility from the control of regulatory measures.

In terms of facilities for handling radioactive waste from mining activities, the subsoil user shall retain the radiation safety justification and radiation safety assessment for at least thirty years after the date of closure of the relevant facility and restoration of the land plot.

Article 135. Liability of the subsoil user for damage caused as a result of pollution

The subsoil user is liable for damage caused as a result of pollution.

Except in cases of negligence or fault, the statutory liability for damage caused by pollution provided for in this article shall not be imposed on any person or entity who:

1) under an agreement with a subsoil user or its contractors or subcontractors, performed tasks or work related to activities in the field of subsoil use;

2) manufactured or supplied equipment for use in subsoil use work;

3) took measures to prevent or limit damage from pollution or to save life that was at risk in connection with subsoil use operations, unless the implementation of such measures is not contrary to direct written instructions of the competent authorities or the provisions of any applicable legislation.

The subsoil user shall not be liable for damage caused as a result of pollution if it proves compliance with all applicable standards of environmental legislation and the implementation of all reasonable actions to avoid damage caused as a result of pollution.

The decision on the liability of the subsoil user shall be made by the court taking into account the grounds provided for in this article.

The liability of a subsoil user for damage caused by pollution may be reduced only to a reasonable extent after taking into account the scale of the relevant subsoil use work, the position of the party that suffered the damage and the possibility of obtaining insurance coverage from both parties, as well as in the event of damage from pollution caused by force majeure or the action of a third party.

Article 136. Industrial safety in subsoil use

The use of subsoil resources, including the planning and design of production and other facilities, must comply with industrial safety requirements.

Subsoil users must ensure compliance with the rules and regulations for safe conduct of work provided by law, as well as the implementation of measures to prevent and eliminate the consequences of accidents, prevent the occurrence of industrial accidents and prevent occupational diseases.

Subsoil use activities that pose a threat to human life and health or cause material damage to legal entities and individuals are prohibited.

Responsibility for ensuring compliance with industrial safety requirements in organizations using subsoil resources rests with their managers, who determine the persons who monitor compliance with industrial safety requirements in structural divisions.

In cases provided for by this Law, the use of subsoil without the consent of the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan is prohibited.

Article 137. Mine rescue units and services for the prevention and elimination of open oil and gas fountains

Subsoil users conducting underground mining operations must be served by mine rescue units, and those conducting drilling operations during the search, exploration and development of hydrocarbon deposits must be served by services for the prevention and elimination of open oil and gas fountains.

The activities of mine rescue units, services for the prevention and elimination of open oil and gas fountains, are carried out in accordance with the provisions approved by the Cabinet of Ministers of the Republic of Uzbekistan in accordance with this Law.

Chapter 15. Elimination of the consequences of subsoil use

Article 138. General provisions for the elimination of the consequences of subsoil use, decommissioning of a subsoil site and restoration of a land plot after the termination of a permit for the main types of activities in the sphere of subsoil use

All subsoil users are obliged to ensure that all necessary measures are taken to ensure that after the termination of subsoil use activities:

1) the consequences of subsoil use were eliminated or the subsoil plot was decommissioned in such a way that the surface of the land plot of the cadastral square, as well as its adjacent territories, were brought to at least the same appearance and quality as they were before the start of subsoil use activities, or, if this is not possible, as close to such a state as possible;

2) the land plot of the surface of the cadastral square and its adjacent territories was reclaimed in such a way as to ensure the restoration of their previous capacity for land use, and, if such restoration of land is not possible, then the most efficient land use for such plots was achieved;

3) the measures proposed for implementation do not lead to any loss of biodiversity;

4) the subsoil user has provided sufficient funding to ensure the sustainability of the measures under consideration in the long term.

Partial cessation of subsoil use activities may be carried out before the termination of the relevant permit in order to reduce the volume of work to eliminate the consequences of subsoil use.

Termination of the relevant permit does not entail termination of obligations to eliminate the consequences of subsoil use. If, thirty years after the termination of the permit, the elimination of the consequences of subsoil use has been fully and successfully completed and no new environmental obligations have arisen, the subsoil user's obligation shall cease.

Article 139. Preliminary plan for the elimination of the consequences of the use of subsoil for mining activities, oil and gas operations and underground storage

Before the commencement of any planned subsoil use activity, a subsoil user holding a permit for the extraction of minerals or a subsoil user holding a permit for underground storage must prepare a preliminary plan for the decommissioning of a subsoil site to terminate subsoil use activity, which must include, as appropriate, the following information:

1) a description of the subsoil area that is subject to closure after the termination of subsoil use activities;

2) the expected reasons for the decommissioning of mining facilities, oil and gas infrastructure facilities, mine closure or underground storage facilities;

3) the expected duration of the cessation of subsoil use activities;

4) the type and quantity of minerals to be mined or stored underground;

5) the type and quantity of any mineral reserves that are expected to remain in the subsoil area after the cessation of subsoil use activities;

6) if necessary, documentation on previously completed subsoil use works on the land plot of the surface of the cadastral square or subsoil plot, including the use of measures for backfilling mine workings;

7) the planned measures to be taken for the disposal, underground storage, dismantling, demolition and reuse of mining facilities and equipment or storage facilities to be installed on the surface or underground or already installed or in use;

8) a preliminary waste management plan outlining proposed measures to reduce, recycle, recover and dispose of mining and other waste;

9) proposed methods for handling any substances hazardous to water;

10) proposed measures that need to be implemented based on risk assessment, current and planned measures to ensure safety and restore the subsoil use site;

11) the proposed measures to be taken with regard to the structure and stability of the slope with respect to erosion and, where appropriate, erosion by water flows;

12) the balance of the land plot in accordance with the types of reuse of land and the requirements of the current land use plan;

13) any necessary special work plans, in particular to ensure the sealing of mines and underground storage facilities for hazardous substances that require special technical sealing structures;

14) the estimated cost of implementing the plan for eliminating the consequences of subsoil use, prepared by a technical consultant;

15) preliminary plan for restoration of the land plot.

The preliminary plan for the elimination of the consequences of subsoil use submitted by the applicant for obtaining a permit will be part of the geological study project, the field development project or the underground storage project, depending on the applicable case.

The subsoil user updates the plan for the elimination of the consequences of subsoil use within the framework of making changes to it in accordance with the procedure provided for by this Law.

Article 140. Preliminary plan for decommissioning a subsoil site for oil and gas operations

Before the commencement of any proposed oil and gas operations, the subsoil user shall draw up a preliminary plan for the decommissioning of the subsoil site to terminate such operations, which shall include the following information:

1) a description of the land plot included in the permit on which the liquidation or conservation of facilities will be carried out after the cessation of oil and gas operations;

2) documentation of oil and gas operations that were carried out on the land plot of the surface of the cadastral square or the subsoil plot included in the relevant permit;

3) reference information relating to the implementation of the plan for decommissioning the subsoil site, which is accompanied by diagrams, charts and, if necessary, relevant photographs, which includes:

a) a map(s) indicating the location and main infrastructure facilities of the land plot of the surface of the cadastral square;

(b) the relevant location, type and condition of any other adjacent objects (such as telephone cables, other pipelines and platforms) that need to be taken into account;

c) information about any commercial activity carried out on the site;

d) any other reference information relevant to the consideration of the plan for decommissioning of the subsoil site;

4) reasons for decommissioning of oil and gas infrastructure facilities;

5) the methods and measures that are proposed to be applied for the decommissioning, dismantling, recycling, demolition, recycling or reuse of oil and gas infrastructure facilities that will be installed or have already been installed or are used on the subsoil site, as well as the reasons for choosing the proposed method, including an assessment of the impact that may arise as a result of the application of the proposed method and measures;

6) a description of the installed or proposed installations that will be decommissioned, including diagrams that also provide:

a) all supporting structures of oil and gas infrastructure facilities at the time of the proposed decommissioning (type, size, configuration and weight);

b) a list of all wells (active, mothballed or abandoned) that are directly related to each oil and gas operations facility;

c) all storage, loading and transportation facilities related to the program;

d) any other established objects;

7) a cost estimate for the proposed measures, which includes a detailed description of the categories of expenditure (based on the best estimate and an indication of any potential deviations from the estimate that may explain the reason for any difference in the final results during the implementation of the plan);

8) proposed monitoring and maintenance measures in the event that any oil and gas infrastructure facility or major equipment is proposed to be left or partially dismantled and removed from the subsoil use site;

9) the expected duration of the cessation of oil and gas operations, including the timeframe for the implementation of proposed measures to decommission the subsoil site and the mechanism for determining such timeframes;

10) if necessary, the type and quantity of hydrocarbon resources already extracted;

11) if necessary, proposed measures that will be applied in connection with any changes in the estimated recoverable reserves or in the assessment of the early termination of hydrocarbon production at the field;

12) if necessary, the type and quantity of any hydrocarbon resources that are expected to remain in the subsoil use area after the cessation of oil and gas operations;

13) preliminary plan for restoration of the site.

The preliminary plan for decommissioning of a subsoil area is part of the project for geological exploration of hydrocarbons or the project for development of an oil and gas field, depending on the applicable case, which is submitted by the applicant for obtaining a permit. This preliminary plan is updated by the subsoil user as part of the submission of updates to the relevant plan in accordance with the procedure provided for by this Law.

Article 141. Final plan for the elimination of consequences for mining activities

Taking into account the second part of this article, the subsoil user is obliged, within one year prior to the planned closure of the deposit, to submit to the Subsoil Use Center for approval a final plan for the elimination of the consequences of subsoil use.

If the subsoil user refuses the relevant permit or it is cancelled before its expiration, the provisions of the last approved preliminary plan for the elimination of the consequences of subsoil use shall apply.

In the event that a final plan for the elimination of the consequences of subsoil use is submitted to the Subsoil Use Center, such plan, if necessary, contains:

1) name and address of the subsoil user;

2) a description of the area used for mining activities (oil and gas operations) within the affected cadastral squares;

3) a description of the extracted minerals and other information obtained in the course of subsoil use activities, in particular, information on difficulties arising from the point of view of technical aspects and safety in carrying out such work;

4) a description of the technical and operational situation at the deposit as an economic entity and, in the absence of a deposit development map, a work plan;

5) the date of commencement of mining activities and the provisional date of their termination, as well as the reasons for such termination;

6) a geological description of the mineral deposit and an inventory of the extracted minerals, including mining waste;

7) description of processing facilities (type, throughput and recovery of finished products and any available chemical analysis results, including metal content of tailings);

8) the planned measures for the effective management of any waste generated during the decommissioning of the subsurface site, with the aim of ensuring the lawful transportation, processing, reuse or safe disposal of all such waste by competent and authorized legal entities and personnel;

9) description of the transport situation and the main aspects of extraction, export and further transportation of processed minerals and related products subject to sale;

10) a description of the relevant available alternatives for decommissioning the subsoil site, which contain an analysis of the comparative impact and risks of the alternatives under consideration based on quantitative assessment criteria that take into account safety, environmental, technical, social and economic aspects, and a justification for the selected option for decommissioning the subsoil site;

11) a decision on the decommissioning of a subsoil site that the subsoil user recommends to implement, with an explanation of the reasons why the proposed scheme for decommissioning the subsoil site is optimal in certain circumstances, including the proposed schedule for its implementation;

12) proposed post-decommissioning monitoring, maintenance, safety and reporting measures for the subsoil site that are proposed to be applied to confirm that any adverse impacts following the cessation of subsoil use activities have been reduced to the minimum possible level;

13) an assessment of the cost of all measures proposed to be implemented during the implementation of the plan for eliminating the consequences of subsoil use, which must include a detailed description of each category of expenses;

14) details of the agreements in accordance with which the subsoil user fully informs the Subsoil Use Center about the progress of work on decommissioning the subsoil site;

15) any other information required in accordance with legislative acts;

16) land plot restoration plan.

The requirement to submit an operating log does not apply to open-pit mining of construction minerals and aggregates.

Article 142. Final plan for decommissioning a subsoil site for oil and gas operations

Taking into account the second part of this article, the subsoil user is obliged, within one year prior to the planned termination of oil and gas operations, to submit for approval to the Subsoil Use Center a final plan for decommissioning the subsoil site.

If the subsoil user refuses the relevant permit or the permit is cancelled by the Subsoil Use Centre before its expiry date, the provisions of the last approved preliminary plan for decommissioning the subsoil site shall apply.

The final plan for decommissioning of a subsoil site, submitted to the Subsoil Use Center, contains, if necessary:

1) the name and postal address of the subsoil user;

2) a description of the subsoil area used for oil and gas operations, within the affected cadastral squares;

3) a description of the extracted hydrocarbon resources and any available geological, geophysical and other data related to geological exploration, as well as any other relevant information obtained in the course of subsoil use work, in particular, information on technical difficulties, as well as difficulties in the field of safety and ecology arising in the course of such work;

4) the date of commencement of subsoil use activities in accordance with the permit and the date of its planned termination, as well as the reasons for such termination;

5) if oil and gas operations affect any exploited oil and gas field or other field:

a) detailed historical information about the hydrocarbon deposit, including the amount of hydrocarbons produced;

b) an assessment of the amount of hydrocarbons that will remain in the field after the cessation of oil and gas operations;

6) types of oil and gas infrastructure facilities subject to decommissioning, including their layout, order of arrangement, depth, type of materials and other materials that are displayed on maps and diagrams;

7) a description of the relevant available alternatives for decommissioning the subsoil site, which:

(a) present an analysis of the comparative impacts and risks of the alternatives under consideration based on quantitative evaluation criteria that take into account safety, environmental, technical, social and economic aspects;

b) clearly present the rationale for the selected option for decommissioning the subsoil site;

8) a decision on the decommissioning of a subsoil site that the subsoil user recommends to implement, with an explanation of the reasons why the proposed scheme for decommissioning the subsoil site is optimal in certain circumstances, including the proposed schedule for its implementation;

9) the planned measures for the effective management of any waste generated during the decommissioning of the subsurface site to ensure that all such waste is legally transported, processed, reused or safely disposed of by competent and authorized companies and personnel;

10) proposed post-decommissioning monitoring, maintenance, safety and reporting measures for the subsoil site that are proposed to be applied to confirm that any adverse impacts following the cessation of subsoil use activities have been reduced to the minimum possible level;

11) an estimate of the cost of all measures proposed to be implemented during the implementation of the plan for decommissioning the subsoil site, which includes a detailed description of each category of expenses;

12) details of the agreements in accordance with which the subsoil user fully informs the Subsoil Use Center about the progress of work on decommissioning the subsoil site;

13) if the oil and gas operations involve an operating oil, gas or other field, detailed historical information about the hydrocarbon field, including the amount of hydrocarbons produced, as well as an estimate of the amount of hydrocarbons remaining at the field after the completion of oil and gas operations;

14) types of oil and gas infrastructure facilities subject to decommissioning, including their location diagram, order of location, depth, type of materials and other materials indicated on maps and diagrams;

15) any other information required by any applicable law.

If, in the opinion of the subsoil user, the most preferable solution for decommissioning a subsoil plot is to leave any oil and gas infrastructure facility on the land plot included in the permit, then the subsoil user must justify that all possible options for decommissioning the subsoil plot, dismantling and removal from the subsoil plot have been fully considered, and a comparative assessment has been carried out, taking into account all types of impact and risks associated with environmental protection and safety, as well as all relevant social and economic consequences.

Article 143. Procedure for approving the final plan for the elimination of the consequences of subsoil use or the plan for decommissioning a subsoil site

Within ninety days from the date of submission by the subsoil user of the final plan for the elimination of the consequences of subsoil use or the plan for decommissioning of a subsoil site for the main types of activities in the sphere of subsoil use, the Subsoil Use Center shall notify the subsoil user in writing of the approval of such a plan or of the conditions, if any, that must be met before the Subsoil Use Center approves the plan in question.

In cases where the work described in the plan for the elimination of the consequences of subsoil use or the plan for the decommissioning of a subsoil site affects the powers and responsibilities of other government agencies, these agencies are involved in the process of approving the plan.

Conditions may be established by the Subsoil Use Center in the event of:

1) if there are significant changes in the timing and types of work, as well as in the schedule of work, including land restoration, in the final plan for eliminating the consequences of subsoil use or the plan for decommissioning a subsoil site;

2) when it is necessary to conduct an environmental assessment and obtain a positive conclusion in accordance with the requirements of environmental protection legislation in relation to a certain part of the work to eliminate the consequences of subsoil use or the decommissioning of a subsoil site or measures after the elimination of the consequences of subsoil use or the decommissioning of a subsoil site;

3) if the subsoil user does not intend to comply with the requirements provided for by other legislation regarding public participation in the process of conducting the necessary environmental assessment.

In the event that the Subsoil Use Center determines the conditions for approval of the final plan for the elimination of the consequences of subsoil use or the plan for decommissioning a land plot in relation to a land plot on the surface of a cadastral square subject to restoration, the Subsoil Use Center for a land plot located on the surface of a cadastral square and adjacent to it or intended for such purposes has the right to unimpeded access to other land plots as necessary at any reasonable time.

As a condition for approving a plan for the elimination of the consequences of subsoil use or a plan for the decommissioning of a subsoil site, the Subsoil Use Center has the right to require the subsoil user to use the subsoil to prevent damage to infrastructure on the surface or for backfilling cavities, underground pits or previously installed underground storage facilities in order to prevent leakage of hazardous substances as a result of underground mining operations, for storage.

In the event that the Subsoil Use Center establishes conditions for filling excavated cavities, underground pits or previously installed underground storage facilities:

1) backfilling of excavated cavities, underground pits or previously installed underground storage facilities should be preferred to dumping (forming waste dumps) on the surface in order to promote the use of sustainable and environmentally safe methods of mineral extraction;

2) The Subsoil Use Centre has the right to decide on the possibility of using mining waste, non-mining waste, or both types of waste for backfill.

In the event that the Subsoil Use Center establishes conditions for the approval of the final plan for the elimination of the consequences of subsoil use or a plan for the decommissioning of a subsoil site, the subsoil user is obliged to submit a new plan in accordance with all of these conditions within sixty days from the date of notification by the Subsoil Use Center to the subsoil user in accordance with part three of this article.

The Subsoil Use Center has the right to refuse to approve the final plan for the elimination of the consequences of subsoil use or the plan for decommissioning a subsoil site only in the following cases if:

1) the subsoil user has not included in the plan all the information and records required in accordance with this Law and other legislative acts related to the planned measures to eliminate the consequences of subsoil use or decommissioning of a subsoil site, as well as measures to be implemented after completion of the elimination of the consequences of subsoil use and decommissioning of a subsoil site;

2) the subsoil user has not provided confirmation or detailed information on the measures it intends to take to obtain the necessary approvals, permits and (or) permissions required in accordance with legislative acts to carry out all activities related to the elimination of the consequences of subsoil use or the decommissioning of a subsoil site, as well as activities to be carried out after the elimination of the consequences of subsoil use or the decommissioning of a subsoil site;

3) The Subsoil Use Center, in its reasoned opinion, does not agree that:

a) all possible options for eliminating the consequences of subsoil use or decommissioning of a subsoil site have been considered and a satisfactory comparative assessment has been carried out;

b) any waste generated as a result of subsoil use activities was correctly used, stored or safely removed from the subsoil area;

c) all necessary precautions have been taken to protect third parties from danger to their health or life during and after the implementation of planned work to eliminate the consequences of subsoil use or the decommissioning of a subsoil site;

d) the measures proposed by the subsoil user to control the negative impact on the environment, which will be implemented after the work to eliminate the consequences of subsoil use or the decommissioning of a subsoil site, are effective and justified;

d) the planned measures for the restoration of the land plot on the surface of the cadastral area have been implemented to the required extent;

e) the safety of people and the security of public transport on the land plot located on the surface of the cadastral area are ensured;

g) the planned closure of the mine in the event of the elimination of the consequences of mining activities will allow the continuation of work in the future, compliance with best industry practices, as well as the requirements of environmental protection legislation and safety measures, as well as the complete withdrawal of infrastructure facilities and equipment from the underground section;

h) the planned decommissioning of the subsoil site and the post-decommissioning activities are feasible and reasonable taking into account best oil and gas practice and comply with all environmental and safety legislation requirements, the potential for reuse of any transport facility together with other existing oil and gas infrastructure facilities for further oil and gas operations in the future has been fully considered and assessed prior to the decommissioning of the subsoil site.

If the plan for eliminating the consequences of subsoil use or the plan for decommissioning a subsoil site is not approved, the subsoil user shall re-submit a new or amended plan within sixty days from the date of the decision by the Subsoil Use Center to reject the plan or determine the conditions for its approval.

Article 144. Validity period of the plan for the elimination of the consequences of subsoil use or the plan for the decommissioning of a subsoil site and amendments to them

A plan for the elimination of the consequences of subsoil use or a plan for the decommissioning of a subsoil site is a valid plan if it is part of:

1) a project for geological exploration of solid minerals for the entire period of validity of the permit for geological exploration of solid minerals;

2) a project for the development of a solid mineral deposit, provided that less than two years have passed from the date of approval of the project by the Subsoil Use Center;

3) a project for geological exploration of hydrocarbons for the entire period of validity of the permit;

4) a project for the development of a hydrocarbon deposit, within five years from the date of its approval by the Subsoil Use Center.

In the event of significant changes being made to the content of the plan for the elimination of the consequences of subsoil use or the plan for the decommissioning of a subsoil site, the subsoil user is obliged to notify the Subsoil Use Center in writing of the introduction of the corresponding changes to the plan.

The Subsoil Use Center shall consider all changes proposed by the subsoil user to the plan for eliminating the consequences of subsoil use or the plan for decommissioning a subsoil site, in accordance with the procedure established by the second part of Article 57 or Article 91 of this Law.

Article 145. Obligation of a subsoil user to draw up a preliminary plan for the restoration of a land plot

As part of the obligation to prepare a deposit closure plan, before the commencement of any subsoil use work, the subsoil user, in the course of preparing a geological survey project or a deposit development project for approval by the Subsoil Use Center, draws up a preliminary plan for the restoration of the subsoil use land plot.

The preliminary plan for restoration of the land plot contains, if applicable:

1) a preliminary schedule for the implementation of the proposed land restoration work,

2) an assessment of the cost of all measures proposed to implement the plan;

3) assessment of the expected impact on the land plot and the environment of the proposed stages of mining activities (oil and gas operations) for the excavation of mine workings and (or) sites for the placement of waste dumps for parallel restoration measures and (or) backfilling of underground workings;

4) a description of the equipment and transport machinery proposed for use to carry out measures to restore the land plot;

5) the planned reuse of the subsoil area and the proposed restrictions on its reuse;

6) a preliminary plan for dismantling mining infrastructure facilities;

7) a preliminary plan for planting trees and landscaping the waste dump area;

8) preliminary reclamation plan (contains detailed plans for planting, soil use, surface formation, measures to stimulate the return of plant and animal life);

9) a preliminary infrastructure plan providing for the construction of roads for official and public needs, as well as housing and recreational infrastructure;

10) in the case of open-pit mining of deposits - proposed measures to compensate for the negative impact on the landscape as a result of subsoil use work at the site of the deposit's extraction and measures to replace it outside of it;

11) proposed measures for soil fertilization;

12) a preliminary relief model describing the shape of the landscape after the implementation of the proposed restoration measures;

13) the proposed design of surface drainage systems, including, where applicable, planned surface water structures and lakes following mining operations;

14) modeling of expected future groundwater levels and water balance;

15) the planned groundwater monitoring measures that are proposed to be applied;

16) the monitoring, quality management and reporting measures that are proposed to be applied following the implementation of the proposed land restoration works.

The preliminary plan for the restoration of a land plot is part of the preliminary plan for the elimination of the consequences of subsoil use.

The subsoil user is obliged to draw up and submit to the Subsoil Use Center for approval a new plan for the elimination of the consequences of subsoil use or a plan for the decommissioning of a subsoil site in the event that the implementation of the plan for the restoration of the land site contained therein requires a new environmental assessment and the receipt of a positive conclusion on it in accordance with the legislation on environmental protection in connection with a change in the conditions of extraction or other changes that may have a negative impact on the environment.

Article 146. Obligation of a subsoil user conducting oil and gas operations to draw up a preliminary plan for the restoration of a land plot

Before starting any work on oil and gas operations, a subsoil user who must prepare and submit for approval to the Subsoil Use Center a project for geological exploration of hydrocarbons or a project for the development of a hydrocarbon deposit, draws up a preliminary plan for the restoration of the subsoil use land plot on which it is planned to carry out oil and gas operations.

The preliminary plan for the restoration of the land plot specified in the first part of this article shall contain, if applicable:

1) a preliminary schedule for the implementation of the proposed land restoration work,

2) an assessment of the cost of all measures proposed to implement the plan;

3) an assessment of the expected impact on the land and the environment of the proposed stages of oil and gas operations;

4) a description of the equipment and transport machinery proposed for use to carry out measures to restore the land plot;

5) the planned reuse of the subsoil area and the proposed restrictions on its reuse.

The initially developed preliminary plan for the restoration of the land plot is part of the preliminary plan for the decommissioning of the subsoil plot.

The subsoil user is obliged to draw up and submit to the Subsoil Use Center for approval a new plan for decommissioning a subsoil plot if the implementation of the plan for restoration of the land plot contained therein requires conducting an environmental assessment and obtaining a positive conclusion on it in accordance with the legislation on environmental protection due to changes in conditions during oil and gas operations that may have a negative impact on the environment.

Article 147. Obligation of the subsoil user to submit a final plan for the restoration of the land plot

A subsoil user who has an obligation to submit a final plan for the elimination of the consequences of subsoil use or a plan for the decommissioning of a subsoil site is obliged, within one year prior to the end of subsoil use activities, to submit for approval to the Subsoil Use Center a final plan for the restoration of the land plot as part of the final plan for the elimination of the consequences of subsoil use or a plan for the decommissioning of a subsoil site.

The content of the final plan for the restoration of the land plot must comply with the requirements for conducting an environmental assessment and obtaining a positive conclusion on it in accordance with the legislation on environmental protection, while the conclusions, studies and assessments specified in such a state environmental assessment in relation to any protected natural resources are taken into account when assessing the impact on nature and assessing the measures for the restoration of the land plot that the subsoil user proposes to implement.

The Subsoil Use Center shall approve the final plan for the restoration of the land plot as part of the procedure for approving the final plan for the closure of the deposit in accordance with the provisions of Article 143 of this Law.

Article 148. Validity period of the land restoration plan and amendments thereto

A plan for the restoration of a land plot, which has not previously been amended in accordance with part two of this article, is valid and subject to execution:

1) if it is part of a geological exploration project - for the entire period of validity of the geological exploration permit;

2) if it is part of a project for the development of a solid mineral deposit, within two years from the date of approval of the relevant plan by the Subsoil Use Center;

3) if it is part of a project for the development of an oil and gas field, within five years from the date of approval of the plan by the Subsoil Use Center.

The subsoil user is obliged to notify the Subsoil Use Center in writing of its intention to amend the plan for restoration of the land plot in the event of any significant changes in its content.

The Subsoil Use Center considers all changes proposed by the subsoil user to the land plot restoration plan within twenty working days.

Article 149. Obligations of the subsoil user to eliminate the consequences of uranium mines and structures, as well as to restore the land plot

In addition to other obligations to eliminate the consequences of subsoil use within the framework of the permit for the extraction of solid minerals, a subsoil user carrying out uranium mining activities is obliged to comply with:

1) the provisions of any applicable legislation governing the cessation of uranium mining activities and, where applicable, the cessation, post-closure maintenance and operation of any uranium mining infrastructure facility, ore processing facility, uranium oxide concentrates facility or mining radioactive waste management facility;

2) the terms and conditions of the special permit for radiation safety for the closure of a uranium mine and facilities, as well as land restoration work.

The subsoil user is obliged to immediately notify in writing the authorized body exercising state control in the field of radiation safety:

1) on the deadlines for terminating uranium mining activities that are carried out before the expiration of the permit for the extraction of solid minerals;

2) any changes in factual information regarding the approved mine closure plan.

The subsoil user shall notify in writing the authorized body exercising state control in the field of radiation safety about the successful completion of all approved measures and works on the closure of the mine and after its closure and shall provide it with financial reports confirming the expenses incurred during the implementation of the works.

The authorized body exercising state control in the field of radiation safety checks the compliance of the measures taken with the work specified in the plan for the elimination of the consequences of subsoil use and the conditions of the radiation safety permit for the closure of the uranium mine and infrastructure facilities.

The financial statements specified in part three of this article are subject to confirmation by an auditor in accordance with the provisions of the Law of the Republic of Uzbekistan "On Auditing Activity" and verification at the expense of the subsoil user by an independent auditor with relevant experience in conducting financial, environmental and technical audits of uranium mining activities.

In addition to the requirements of Article 151 of this Law, the release of the security deposit covering the costs of the subsoil user implementing all approved measures to close the mine and after its closure depends on a positive opinion of an independent auditor.

The Subsoil Use Centre registers in the State Land Cadastre any restrictions on land use due to residual radioactive contamination that continue to apply after the successful closure of a mine and the environmental restoration of the land or any uranium production facility.

Article 150. Obligation of the subsoil user to conduct monitoring of the land plot surface of the cadastral square

After the subsoil user has completed all the measures provided for in the approved deposit closure plan and the corresponding land restoration plan, the subsoil user shall notify the Subsoil Use Center in writing of the implementation of the corresponding plan.

Within six months from the date of implementation of all measures provided for in the relevant plan, the subsoil user shall submit to the Subsoil Use Center a report on the completion of the work, which shall contain information on the implementation of all these measures in full. The report shall include:

1) a description of how the key milestones of the relevant plan were achieved;

2) evidence that all measures to close the mine, including land restoration, were carried out in accordance with the terms of the relevant plan;

3) the results of the monitoring and maintenance measures taken, which should be accompanied by independent third party verification;

4) results of environmental sampling after cessation of activities;

5) measures taken to manage potential risks arising from any mining or oil and gas infrastructure facilities remaining on the land covered by the permit;

6) a detailed description of the actual costs incurred and an explanation of any difference compared with the projected costs.

After the implementation of the approved measures for the restoration of the land plot, the subsoil user, at the written request of the Subsoil Use Center, within two years after the implementation of the plan, is also obliged to carry out, at its own expense and under control, measurements in order to determine the expected type and scale of the impact of subsoil use activities on the land plot and to monitor any adverse consequences in the event that:

1) the implementation of subsoil use works caused damage to the land plot and had a negative impact on existing physical structures;

2) there are reasonable grounds to expect that any such damage will occur;

3) the performance of such measurements may have an impact on the prevention of risks to human life and health or damage to property belonging to any third party.

Any landowner, land user or owner of a land plot on which a subsoil user must conduct the measurements specified in part three of this article shall grant the subsoil user free access at any reasonable time, but the subsoil user shall be obliged to pay appropriate compensation to such landowner, land user or owner of a land plot for any damage caused as a result of such measurements.

The subsoil user is obliged to immediately submit the results of the measurements specified in part three of this article to the Subsoil Use Center, which will publish them for public review in accordance with legislative acts.

Article 151. Financial guarantees for the elimination of the consequences of subsoil use

Before commencing any activity on the extraction of minerals on the basis of a permit for the extraction of minerals, which requires the existence of a project for the extraction of minerals, the subsoil user is obliged to provide a financial guarantee in the form established by Article 152 of this Law, for the purpose of:

1) the full fulfillment of all obligations specified in the permit issued in accordance with the provisions of this Law, including provisions on obligations to carry out work after the termination of activities;

2) ensuring the availability at any time of funds for the elimination of the consequences of subsoil use and the restoration of a land plot damaged as a result of mining activities, or any waste management infrastructure facility in accordance with the plan for the elimination of the consequences of subsoil use, the plan for the restoration of the land plot and the waste management plan.

The calculation of the amount of the guarantee specified in the first part of this article is made on the basis of:

1) the likely impact of mining activities and waste management infrastructure facilities on the environment and human health;

2) determination of work to eliminate the consequences of subsoil use and to restore the land plot, including after the use of any waste management infrastructure facility;

3) applicable environmental standards and targets, including the physical stability of any waste management infrastructure facility, minimum soil and water quality standards, and maximum emission levels of pollutants;

4) technical measures necessary to achieve environmental objectives, in particular measures aimed at ensuring the stability of the waste management infrastructure facility and limiting damage to the environment;

5) measures necessary to achieve the objectives during the mine closure phase and after its closure, including ensuring the restoration of the land area, the performance of post-closure works and, where necessary, monitoring and measures to restore biodiversity;

6) the expected time scale of impact and the necessary measures to mitigate the consequences of subsoil use;

7) estimates of the costs required to ensure land reclamation during the mine closure stage and after its closure, including possible post-mine closure monitoring or clean-up of contaminants.

In the case of permits for the extraction of the main types of solid minerals, the assessment provided for in paragraph 7 of part two of this article shall be carried out by an independent and qualified third party, which is subject to approval by the Subsoil Use Center and provides for the possibility of unplanned or premature termination of activities.

In other cases, the assessment may be carried out by the subsoil user and confirmed by the Subsoil Use Center.

If the Subsoil Use Center does not agree with the assessment of costs incurred by the subsoil user, it proposes its own assessment of costs, which the subsoil user may accept, and if the subsoil user disagrees with the assessment of the Subsoil Use Center, it may, at its own expense, engage an independent and qualified third party; the third party is obliged to assess the costs specified in paragraph 7 of part two of this article.

The amount of the guarantee is adjusted annually taking into account changes in the factors listed in part two of this article.

If, for reasons beyond the control of the subsoil user, previously provided security ceases to comply with the provisions of this Law, the subsoil user is obliged to replace such security within sixty days.

If, within the specified period, the subsoil user has failed to perform such replacement of the security, then it is obliged to immediately suspend any current mining activity, except for maintenance and technical service work. Resumption of mining activity is carried out only after restoration or replacement of such security.

If the amount of the relevant security is insufficient to cover the expenses provided for in the relevant plan for the elimination of the consequences of subsoil use, the Subsoil Use Center has the right to receive the missing amount at the expense of the property of the subsoil user obligated to eliminate the consequences of subsoil use.

If the amount of the relevant security exceeds the actual amount of expenses for eliminating the consequences of subsoil use, the subsoil user has the right to receive the remaining amount by providing an act on eliminating the consequences of subsoil use within the relevant subsoil area.

Article 152. Ensuring the fulfillment of obligations to eliminate the consequences of subsoil use by a guarantee, a bank deposit pledge or insurance

A subsoil user may fulfill its obligation to finance the elimination of the consequences of subsoil use and the costs of restoring a land plot by means of a guarantee, a bank deposit pledge or insurance.

In the event of failure by a subsoil user to fulfill the obligation to eliminate the consequences of subsoil use or the obligation to restore a land plot, the Republic of Uzbekistan shall have the right to receive performance from the guarantor, at the expense of a bank deposit pledge or an insurance policy, depending on the applicable case, within the limits of the smallest monetary amount determined for the fulfillment of the subsoil user's obligations to eliminate the consequences of subsoil use, in whole or in part, in accordance with the plan for eliminating the consequences of subsoil use and the plan for restoring the land plot, or to receive the amount of the guarantee, bank deposit or insurance.

The guarantee is issued by a bank with a good reputation. If the guarantor is a foreign bank or an organization whose shares are in circulation on the securities market, such guarantors must meet the conditions for the minimum rating determined by the Subsoil Use Center. The guarantee is provided in the state language according to a standard form agreed upon by the Subsoil Use Center. A guarantee issued by a foreign person may be drawn up in a foreign language with a mandatory translation into the state language, the accuracy of which must be certified by a notary.

In the case of a bank deposit pledge, the subject of the pledge in accordance with this article may only be a bank deposit placed in a bank with a good reputation. The deposit is pledged solely for this purpose and has priority over all other creditors of the subsoil user.

Repledging of a bank deposit, which is security for the fulfillment of obligations to eliminate the consequences of subsoil use, is prohibited. The pledge of a bank deposit may be made in national or foreign currency.

In case of insurance, the insurance organization issuing the insurance policy must be a leading company that meets the requirements of the minimum credit rating in foreign currency determined by the Subsoil Use Center. By virtue of the insurance contract, failure to fulfill or improper fulfillment by the subsoil user of obligations to eliminate the consequences of subsoil use in the manner prescribed by this Law (insured event) entails payment of the insurance amount in favor of the Republic of Uzbekistan (beneficiary). The insurance relations provided for in this article are regulated by the insurance legislation.

The obligations of the guarantor, the bank in which the bank deposit is pledged, or the insurance organization, as provided for in this article, shall not cease until the completion of the liquidation of the consequences of subsoil use.

If a subsoil user assigns part or all of the rights under a subsoil use permit to a third party in accordance with Article 95 of this Law, the recipient must either assume obligations under the guarantee, bank deposit pledge or insurance from the transferring party, or arrange for the introduction of a new guarantee, bank deposit pledge or insurance that meets the requirements of this Article within thirty days after the assignment of rights. The guarantee, bank deposit pledge or insurance of the original subsoil user may terminate after the new subsoil user confirms such a replacement.

In the event of liquidation of a subsoil user that is a legal entity, or bankruptcy, the subject of a guarantee, pledge of a bank deposit or insurance is not included in the tender estate, and the guarantor, pledgee of a bank deposit, holder of an insurance policy are not creditors participating in the satisfaction of claims at the expense of the property of the subsoil user.

Article 153. Ensuring the fulfillment of obligations to eliminate the consequences of subsoil use through financing

Starting from the first year after the sale of products by a subsoil user who has a permit for the extraction of solid minerals, such subsoil user shall create a liquidation fund with a target bank account solely for the purpose of fulfilling its obligations under the approved plan for the liquidation of the consequences of subsoil use, including the plan for the restoration of the land plot.

Bank account of the liquidation fund specified in the first part of this article:

1) opened in the name of the subsoil user in the form of a special escrow account (escrow account);

2) is served by a commercial bank with a good reputation, licensed by the Central Bank of the Republic of Uzbekistan;

3) provides for the accrual of interest, with all accrued interest being part of the liquidation fund;

4) is denominated in a relatively stable currency to prevent loss of value due to inflation.

The funds are deposited into the bank account of the liquidation fund by the subsoil user annually before March 31. The amount to be paid annually is one percent of the net income received by the subsoil user over the past year.

If the year of the payment period is incomplete, the subsoil user’s obligation to finance is calculated proportionally for each full month of such period in the specified year.

Payments may be made by the subsoil user at one time or in parts, which must not exceed four parts during each financial year. Contributions to the liquidation fund are subject to deduction from the taxable base.

Taking into account the provisions of part five of this article, the funds of the liquidation fund may not be pledged or offered as security for any loan or guarantee, or otherwise collected or alienated in any form.

If a subsoil user assigns part or all of the rights under a subsoil use permit to a third party in accordance with Article 111 of this Law, then it may accordingly transfer part or all of the funds of the liquidation fund to the approved recipient. After such assignment of rights, the liquidation fund is formed in full.

Each year, the total amount of the relevant guarantee, bank deposit or insurance provided for in Article 152 of this Law shall be reduced by the amount of funds transferred annually to the liquidation fund.

Withdrawal of funds from the liquidation fund account is permitted solely for payment of works on liquidation of consequences of subsoil use and restoration of the land plot in accordance with the approved plan for liquidation of consequences of subsoil use and the plan for restoration of the land plot. In order for a subsoil user to withdraw funds from the liquidation fund account, it is necessary to obtain written permission from the Subsoil Use Center.

The subsoil user shall submit to the Subsoil Use Center no later than thirty days after the end of each year an extract of accounts for its contributions to the liquidation fund in the form established by the Subsoil Use Center. A copy of such an extract shall be submitted by the subsoil user to the tax authorities within the same period.

If, after the implementation of all measures provided for in the approved plan for the elimination of the consequences of subsoil use and the plan for the restoration of the land plot, in a manner acceptable to the Subsoil Use Center, there are excess funds remaining in the liquidation fund, then these excess funds are considered income for tax purposes, and the amount remaining after withholding any tax is returned to the subsoil user.

In the event of failure by a subsoil user to fulfill its obligations to eliminate the consequences of subsoil use and restore the land plot in accordance with the requirements of this chapter, the Subsoil Use Center shall withdraw the required amount from the liquidation fund to pay for work to eliminate the consequences of subsoil use that were not carried out, and in the event of a lack of sufficient funds in the liquidation fund, it shall require the provision of the missing funds through a guarantee, a bank deposit pledge, or insurance.

The Subsoil Use Centre may access the liquidation fund only after it has provided the subsoil user with a written notice of non-compliance and the latter has failed to eliminate such non-compliance or to initiate liquidation activities within sixty days of receipt of the written notice. In the event that the activities have only begun but have not been completed, a mandatory schedule must be submitted that cannot be extended.

In the event that the Subsoil Use Center makes a decision to use the liquidation fund to carry out unfulfilled work to eliminate the consequences of a subsoil user, it is responsible for managing the fund in accordance with current legislation; the purchase of any goods, works or services necessary to carry out such work is regulated by the legislation on public procurement.

Article 154. Ensuring the fulfillment of obligations to eliminate the consequences of oil and gas operations

No later than the date of completion of the first year of approved oil and gas operations, the subsoil user shall create a subsoil decommissioning fund with a target bank account, solely for the purpose of fulfilling its obligations under the approved subsoil decommissioning plan and the land restoration plan.

Bank account of the fund for decommissioning the subsoil site specified in the first part of this article:

1) opened in the name of the subsoil user in the form of a special escrow account (escrow account);

2) be located in a commercial bank with a good reputation, licensed by the Central Bank of the Republic of Uzbekistan, and is acceptable to the Subsoil Use Center;

3) provides for the accrual of interest, with all accrued interest being part of the subsoil site decommissioning fund;

4) denominated in a relatively stable currency to prevent loss of value due to inflation.

Funds are deposited into the subsoil plot decommissioning fund account by the subsoil user annually before March 31. If the year of the payment period is incomplete, the subsoil user's obligation to finance is calculated proportionally for each full month of the period in the specified year.

The annual contribution of the subsoil user during geological exploration and assessment is zero point five percent of capital expenditures, and during hydrocarbon production, two percent of capital expenditures for the previous year.

Payments may be made by the subsoil user at one time or in parts, which must not exceed four parts in one financial year. Contributions to the subsoil decommissioning fund are subject to deduction from the taxable base.

Taking into account the provisions of part five of this article, the funds of the subsoil decommissioning fund may not be pledged or offered as security for any loan or guarantee and may not be used as security for any loan or guarantee or collected or alienated in any other way or in any other form.

If a subsoil user assigns part or all of the rights under the permit to a third party in accordance with Article 111 of this Law, the subsoil user may accordingly transfer part or all of the funds of the subsoil plot decommissioning fund to the approved recipient. After such assignment of rights, the fund is formed in full.

Withdrawal of funds from the subsoil decommissioning fund account is permitted exclusively for payment of work to eliminate the consequences of oil and gas operations and restore the land plot in accordance with the approved plan for decommissioning the subsoil plot and the plan for restoring the land plot. In order for a subsoil user to withdraw funds from the fund account, it is necessary to obtain written permission from the Subsoil Use Center.

The subsoil user shall submit to the Subsoil Use Center no later than thirty days after the end of each year an extract of accounts for its contributions to the subsoil plot decommissioning fund in the form established by the Subsoil Use Center. A copy of such an extract shall be submitted by the subsoil user to the tax authorities within the same period.

If, after all measures provided for in the approved plan for decommissioning of a subsoil site and the plan for restoration of the land site have been carried out in a manner acceptable to the Subsoil Use Center, there are excess funds remaining in the subsoil site decommissioning fund, these excess funds are considered income for tax purposes, and the amount remaining after withholding any tax is returned to the subsoil user.

For the period prior to the creation of a fund for decommissioning a subsoil plot, as well as in cases where the resources of the fund for decommissioning a subsoil plot are insufficient to cover the costs of all proposed measures set out in the approved plan for decommissioning a subsoil plot and the plan for restoration of the land plot, the subsoil user shall cover such difference by means of a guarantee, a bank deposit pledge or insurance, as provided for in Article 152 of this Law, in order to fulfill its obligations in full.

In the event of a subsoil user’s failure to fulfill its obligations to eliminate the consequences of oil and gas operations and restore land plots, or in the event of the liquidation or bankruptcy of a subsoil user, the Subsoil Use Center shall withdraw the necessary amount from the subsoil plot decommissioning fund to pay for the work on decommissioning the subsoil plot that was not carried out.

The Subsoil Use Center shall have access to the funds of the subsoil decommissioning fund only after a written notice of non-compliance with the requirements has been sent to the subsoil user, and the subsoil user has not corrected such non-compliance within sixty days after receiving the written notice.

If the Subsoil Use Center makes a decision to use the resources of the subsoil decommissioning fund to carry out outstanding work by a subsoil user to decommission a subsoil site and restore the land plot, it shall be responsible for managing the resources of the fund in accordance with applicable legislation, and the procurement of any goods, works or services necessary to carry out such work shall be regulated by applicable legislation on public procurement.

If the subsoil decommissioning fund does not have sufficient funds, the Subsoil Use Center requires the provision of the missing funds through a guarantee, a bank deposit pledge, or insurance, as specified in Part Eleven of this Article.

Chapter 16. Support in ensuring development

Article 155. Provision by the subsoil user of local content in personnel

All unskilled labor for professions that do not require qualifications, used under any permit, is recruited only from among the citizens of the Republic of Uzbekistan.

Any subsoil user and its contractors, subcontractors and national suppliers must give preference to local labor.

The attraction of foreign labor by a subsoil user is carried out only in the event of a shortage of personnel in the territory of the Republic of Uzbekistan, in the manner established by law.

The number of foreign citizens among managers and specialists must not exceed twenty percent of the total number of managers and specialists in each relevant category.

If a subsoil user can justify the absence of qualified personnel from among the citizens of the Republic of Uzbekistan, the subsoil user may attract and hire, including for management positions, foreign specialists in excess of the limit provided for in part four of this article.

At the stage of construction of the project for the main types of minerals, the limit restriction provided for in part four of this article shall not apply in regions where there is a shortage of appropriate qualified personnel from among the citizens of the Republic of Uzbekistan.

The subsoil user is obliged to include in its annual report information on local content in personnel, including in the composition of managers and specialists.

Article 156. Requirements for science and education

A subsoil user for the main types of solid minerals or a subsoil user for hydrocarbons shall develop a training program for citizens of the Republic of Uzbekistan twelve months after the start of production activities. A subsoil user is obliged to submit its detailed training program for citizens of the Republic of Uzbekistan to the Subsoil Use Center for approval no less than one month before the start of the program.

The program specified in the first part of this article provides for:

1) ensuring the development of science, training and education at all stages of the relevant subsoil use activities;

2) maximum transfer of knowledge to citizens of the Republic of Uzbekistan by expanding their managerial and technical capabilities, as well as any necessary means for performing technical work, including data interpretation;

3) reservation of appropriate opportunities for practical training of personnel from among citizens of the Republic of Uzbekistan and students of educational organizations engaged in educational activities on the territory of the Republic of Uzbekistan;

4) ensuring ethnic, cultural and gender equality and respect for human rights, including the rights of individuals belonging to nations and peoples living on the territory of the Republic of Uzbekistan and socially vulnerable categories of the population.

The subsoil user for the main types of minerals is obliged to provide funding for its training program in the amount of no less than one percent of its net revenue received from the extraction of minerals or hydrocarbons based on the results of the previous year.

The subsoil user for the main types of minerals is obliged to include in its annual report detailed information on training activities carried out within the framework of the training program.

Article 157. Ensuring local content in the procurement of goods (works, services) in the Republic of Uzbekistan

When carrying out subsoil use work, any subsoil user in the main types of activities in the sphere of subsoil use or its contractors and subcontractors make every effort to give preference to:

1) goods, materials and equipment produced or available in the Republic of Uzbekistan, if their characteristics correspond to foreign goods in terms of quantity, quality, price and delivery times;

2) services provided by individuals and legal entities of the Republic of Uzbekistan.

A certain share of local content requirements for a subsoil user when carrying out subsoil use activities related to the supply and use of goods, materials, works and services produced in the Republic of Uzbekistan may be established by legislative acts, provided that they correspond in their characteristics to foreign goods in terms of quantity, quality, price and delivery times.

The subsoil user is obliged to include in its annual report detailed information on local content in purchases.

Article 158. Obligations for the socio-economic development of regions

During the period of mineral extraction, starting from the second year of commencement of operations on mineral extraction, a subsoil user holding a permit for the extraction of the main types of solid minerals, a subsoil user holding a permit for the extraction of hydrocarbons, or a subsoil user using a subsoil plot for purposes not related to the extraction of minerals, is obliged to annually ensure the share of local content in the purchase of goods (works, services) acquired for the use of subsoil at a level of no less than fifty percent of the total volume of acquired goods (works, services) (except for goods, works and services acquired for the construction of mining and processing (beneficiation) production and the corresponding infrastructure during the investment period or during the period of subsequent expansion).

If a subsoil user cannot meet the fifty percent target due to a lack of resources in the Republic of Uzbekistan, the subsoil user and the Subsoil Use Center may agree on a lower target for a certain period of time.

The amount of financing for the socio-economic development of a region that exceeds the established minimum is subject to offset against the fulfillment of the relevant obligations of the subsoil user in the following year.

The subsoil user is obliged to include in its annual report detailed information on socio-economic development.

Article 159. Infrastructure

The subsoil user has the right to construct and maintain the infrastructure necessary for carrying out activities related to the relevant permits and subject to state environmental review.

The infrastructure constructed, installed and used in the course of the relevant activities of the subsoil user must comply with the following requirements:

1) the design, manufacture, supply, installation and maintenance of infrastructure must be carried out in full compliance with the standards, technical conditions and safety requirements stipulated by legislative acts;

2) be consistent with the purpose for which the infrastructure is or will be used;

3) ensure the safe conduct of relevant subsoil use activities;

4) take into account the specific operational and environmental conditions that are expected to be encountered during the course of subsoil use activities;

5) comply with the relevant approved work plan.

For any infrastructure built by a subsoil user, a plan is first drawn up and submitted to the authorized body for approval, after receiving the consent of the local government bodies.

A subsoil user is required to conduct regular tests, inspections and checks of mining or oil and gas infrastructure and facilities to ensure that the infrastructure or facilities comply with applicable standards and requirements, and is required to maintain records of the results of any such tests, inspections and checks.

Records of tests, inspections and checks of mining or oil and gas infrastructure and facilities shall be provided upon request to the Subsoil Use Center, the Ministry of Mining and Geology of the Republic of Uzbekistan or the Ministry of Energy of the Republic of Uzbekistan, as applicable, as well as any other authorized state bodies that may require the subsoil user to prepare and submit a report regarding the conduct of the relevant test, inspection or check.

Communication channels created by a subsoil user within the boundaries of a land plot of the surface of a cadastral square may be used for the needs of other neighboring mining, industrial and commercial enterprises at their request, and may also be opened for general use, in the absence of obstacles to their use by the subsoil user, with the consent of the latter, subject to payment of compensation established by agreement of the parties.

Communication channels created by a subsoil user outside the land plot of the cadastral square surface may be provided for general use subject to compliance with the technical conditions and safety requirements issued by the subsoil user within the framework of operation.

The infrastructure built by the subsoil user, which remains on the land plot after the expiration of the permit, is in common use.

Chapter 17. Payments for the use of subsoil resources

Article 160. Types of payments for subsoil use

The use of subsoil resources is carried out on a paid basis for cases provided for by legislative acts.

Subsoil users pay all applicable taxes and other special payments.

Taxation of subsoil users is carried out in accordance with tax legislation. The tax for the use of subsoil is applied to the extracted minerals.

Special payments, in addition to the subsoil use tax, include:

1) a fee for consideration of the application, paid together with the application for the issuance or extension of the permit;

2) payments made based on the results of an auction, tender, as well as in accordance with acts of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan (if applicable);

3) an annual license fee for geological exploration of solid minerals, hydrocarbon reconnaissance work, geological exploration of hydrocarbons, or geological exploration for underground storage in accordance with Article 161 of this Law.

The fee specified in paragraph 1 of part four of this article shall be paid upon filing of the application.

The payments specified in paragraph 2 of part four of this article shall be paid upon successful completion of the auction or tender or after the adoption of an act of the President of the Republic of Uzbekistan or the Cabinet of Ministers of the Republic of Uzbekistan.

The payments specified in paragraph 3 of part four of this article shall be paid on the day the permit is issued and in each year from the day the permit is issued.

Land tax is paid in accordance with the law.

Article 161. Annual license fee under a permit for geological exploration of minerals

The annual license fee for the use of a subsoil plot for geological exploration is an annual payment for the right to carry out activities to search for and explore minerals for each cadastral square specified in the relevant permit.

The license fee for the use of a subsoil plot for geological exploration shall be paid for each year of use of the subsoil plot for geological exploration in accordance with the period specified in the permit.

The amount of the license fee for the use of a subsoil plot for geological exploration is:

1) ten percent of the basic calculation value established by law for one hectare of subsoil area subject to geological study, by type of main minerals;

2) fifteen percent of the basic calculation value established by law for one hectare of geological exploration of non-metallic minerals.

The annual payment for the first and last year of the permit is paid proportionally for the period of the year for which the permit is valid.

The annual payment for a permit for geological exploration of minerals is paid by the subsoil user to the tax authorities at the place of tax registration within thirty days from the date of receipt of the permit for the first year. For each subsequent year, payments are made no later than March 31 of each year.

The annual license fee for the use of subsoil for geological exploration is directed:

seventy percent - to the republican budget of the Republic of Uzbekistan;

fifteen percent - to local budgets of the Republic of Karakalpakstan and regions;

fifteen percent - to local budgets of districts (cities).

Chapter 18. Disputes and Responsibility

Article 162. Guarantee of the rights of subsoil users

Interference by government bodies in the activities of subsoil users is not permitted.

Violated rights of subsoil users are subject to restoration in accordance with the procedure established by law.

Article 163. Liability for violation of subsoil legislation

Persons found guilty of violating subsoil legislation shall be held liable in accordance with the established procedure.

Damage caused to the state as a result of the use of subsoil resources in violation of established norms and requirements shall be compensated in the manner prescribed by law.

An offence in the sphere of subsoil use is:

1) if the subsoil user has not submitted a project for the geological study of solid minerals, a project for reconnaissance work, a project for the geological study of hydrocarbons, a project for the development of a deposit of solid minerals, a project for the development of a deposit of hydrocarbons, an underground storage project, a plan for the elimination of the consequences of subsoil use, a plan for the decommissioning of a subsoil site, a plan for the restoration of a land plot, depending on the specific case, within the time period established by this Law;

2) if, under a project for geological exploration of solid minerals, a project for reconnaissance work, a plan for geological exploration of hydrocarbons, a project for the development of a deposit of solid minerals, a project for the development of a deposit of hydrocarbons, an underground storage project, a plan for the decommissioning of a subsoil site, a plan for the decommissioning of a subsoil site, a plan for the restoration of a land plot, depending on the specific case, there are serious violations directly related to the relevant subsoil use activity that cannot be eliminated or, if they can be eliminated, but are not eliminated within ninety days from the date of notification of this, or if the subsoil user has begun diligent work to eliminate the violations, but more than ninety days are required to eliminate them;

3) if the subsoil user has serious violations of its environmental obligations that cannot be eliminated, or they can be eliminated but are not eliminated within ninety days from the date of notification, or if the subsoil user has begun diligent work to eliminate the violations, but more than ninety days are required to eliminate them;

4) if the subsoil user carries out regulated activities related to the use of subsoil without the appropriate permit;

5) if the subsoil user carries out regulated activities for the use of subsoil without the consent of the land user or the owner of the land plot on the surface of the cadastral area specified in the relevant permit;

6) if the subsoil user carries out regulated activities for the use of subsoil without obtaining the necessary permits and agreements;

7) if the regulated activity is carried out by the subsoil user in areas where such activity is prohibited or restricted;

8) if a subsoil user illegally interferes with the activities of another holder of a subsoil use permit;

9) in case of illegal interference by a subsoil user in the infrastructure located on a land plot on the surface of the cadastral area for which a permit has been issued, or in the property owned or used by the land user or owner of such a land plot or on an adjacent land plot;

10) if the subsoil user has not submitted the relevant notification to the Subsoil Use Center or other authorized body within the time period established by this Law;

11) if the removal of used materials or pollutants from an underground site is carried out by a subsoil user without the consent of authorized bodies;

12) if the subsoil user has failed to pay the payments provided for in accordance with this Law and other legislative acts;

13) if the subsoil user sells or otherwise uses minerals extracted without permission, or transfers them to another person;

14) if the subsoil user violates the reporting requirements established by this Law and does not eliminate them within thirty days from the date of receipt of the relevant notification of such violations;

15) if a subsoil user has disclosed to third parties confidential information obtained during the implementation of subsoil use work in violation of this Law;

16) if the subsoil user does not keep records of geological samples, drill core or dust and (or) disposes of them in violation of this Law;

17) in the event of failure by the subsoil user to provide the requested information, statistical data or information on measures taken to use the subsoil to the Subsoil Use Center or other authorized body, as well as in the event of failure to correct such violation within thirty days from the date of receipt of this request;

18) if the subsoil user intentionally creates obstacles, interruptions or delays in the provision of information to officials of the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan conducting the inspection, and also provides false or misleading information;

19) if the subsoil user refuses to comply with the legal requirement, instructions or orders of officials of the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan who are carrying out the inspection;

20) if the subsoil user does not create, in the manner prescribed by Chapter 15 of this Law, a fund for decommissioning a subsoil plot or a liquidation fund and (or) does not make contributions to this fund, depending on the circumstances.

Persons who have caused damage to subsoil resources as a result of violation of subsoil legislation shall compensate for the damage voluntarily or through the courts.

Article 164. Compensation for damage caused to a subsoil user

Damage caused to a subsoil user by other persons is subject to compensation in accordance with the law.

Losses incurred by subsoil users due to unjustified restriction, suspension or termination of the right to use subsoil areas by the state are subject to compensation in the manner prescribed by legislative acts.

Article 165. Right to appeal in court

Any decision of the Subsoil Use Center or any other state body taken in accordance with this Law, including decisions to refuse to issue any permit or extend it or decisions to cancel a permit, may be appealed in court.

Article 166. Dispute resolution

Disputes on issues related to the use of subsoil resources are resolved in accordance with the procedure established by law.

A subsoil user may apply to international arbitration to resolve disputes if an international treaty of the Republic of Uzbekistan and (or) an agreement concluded between the investor and the Republic of Uzbekistan provides for a corresponding and valid arbitration clause.

Article 167. Guarantees of stability

A subsoil user may contact the Subsoil Use Center on issues related to ensuring the stability of the fiscal, tax, customs and currency regimes applicable to the subsoil user. Methods for ensuring the stability guarantee, including the right to participate, qualification limits, application procedures, duration, extension conditions, applicability, conditions, limitations and exceptions, are determined by legislative acts.

A subsoil user who has been provided with a stability guarantee has the right to maintain the economic conditions stipulated by the legislative acts that were applied at the time the stability guarantee was provided. If amendments to the legislation of the Republic of Uzbekistan in effect on the date of providing the stability guarantee directly lead to an increase in the subsoil user's expenses or a decrease in its income within the framework of the subsoil use project, the subsoil user has the right to demand compensation from the state or to demand the preservation of the legislative act in effect on the date of providing the stability guarantee. The procedure for determining the continuation of the legislative acts or the payment of compensation to the subsoil user and the terms of such payment, including the calculation of amounts, the nature and frequency of payments, are determined by legislative acts.

The subsoil user may refuse the stability guarantee and demand the application of more favorable measures that may be introduced after the date of providing the stability guarantee, but in this case the subsoil owner may choose the new regime(s) only if he fully accepts it. The methods of refusing the stability guarantee are determined by legislative acts.

Taking into account the specific provisions of the stability guarantee, the provisions of this Law and the legislation of the Republic of Uzbekistan shall continue to apply to the subsoil user, in particular, the guarantees provided for in the first part of this article shall not apply to any changes in the legislation on defense, national security, public order, labor protection and environmental protection, provided that with respect to labor protection, safety and environmental protection, the Subsoil Use Center ensures the adoption of any additional measures necessary for the subsoil user to take in the interests of health, safety and (or) environmental protection, consistent with best industry practice.

Chapter 19. Final Provisions

Article 168. Transitional Provisions

Processes initiated prior to the entry into force of this Law shall be completed in accordance with the provisions provided for by the then current legislation on subsoil in the following order:

1) five years are allocated for the creation of a system of cadastral squares;

2) taking into account the provisions of this article, existing permits, production sharing agreements and investment agreements regulating subsoil use activities shall continue to remain in force and shall be subject to execution in accordance with the conditions provided for therein;

3) all permits, as well as production sharing agreements or investment agreements concluded prior to the establishment of the cadastral squares system, shall be issued within the framework of the existing system;

4) until the date of entry into force of this Law, the previously existing boundaries of land plots shall remain in force for all subsoil plots that have been granted a subsoil use permit, as well as for which production sharing agreements or investment agreements have been concluded. Cadastral areas occupied under such permits or agreements shall not be considered open. Such permits, production sharing agreements or investment agreements shall be transferred to the system of cadastral squares upon the first extension of such permits after the creation of the system of cadastral squares by the Subsoil Use Center;

5) The Subsoil Use Center may transfer current permits to the cadastral system before the re-registration of such permits with the consent of subsoil users;

6) the territory of subsoil plots and their geometric shape located on electronic trading platforms for the implementation of the right to use subsoil resources remain in accordance with the legislation in force at the time of the auction and, on the basis of this, the relevant permits are issued;

7) applications for permits submitted prior to the entry into force of this Law shall be considered and processed in accordance with the legislation in force on the date of their submission;

8) the license fee for the use of a subsoil plot for geological exploration shall not be charged until the expiration of the relevant previously issued permit for geological exploration for the subsoil plot for which a subscription bonus for geological exploration work has been paid;

9) the minimum requirements for subsoil users shall apply to subsoil users acting on the basis of the relevant permit, on the date of entry into force of this Law from January 1 of the following year;

10) acts of mining allotments and boundaries of land plots issued for the development of mineral deposits shall remain in force for a period of up to three years from the date of entry into force of this Law. During this period, subsoil users must coordinate the boundaries with the boundaries provided for during the development (equipment) of the deposit in agreement with the Inspectorate for Control in the Sphere of Mining Industry and Geology under the Ministry of Mining Industry and Geology of the Republic of Uzbekistan;

11) subsoil users with valid permits are required to submit a plan for the elimination of the consequences of subsoil use no later than two years from the date of entry into force of this Law, unless they have submitted a new or updated plan for the development of the deposit before this deadline;

12) a project to eliminate the consequences of subsoil use is carried out by a subsoil user on the basis of relevant permits issued in accordance with the legislation, for the extraction of residual reserves of partially developed deposits and minerals and provision of it with the corresponding part of the subsoil plot allocated to it on the basis of a permit;

13) the final report on the geological study of solid minerals in the CRIRSCO format or the final report on the geological study of hydrocarbons in the format of the hydrocarbon resources accounting and management system (PRMS) for ten years for use by the state when updating the state subsoil fund from December 31 of the year of entry into force of this Law must contain the following information: reserves A, B, C1 and C2 and the system of reporting on mineral resources and reserves by categories of potential resources P1, P2, P3, as well as reserves approved by the state in accordance with Article 49 of this Law, including categories of balance and off-balance reserves;

14) the requirements for financing the elimination of the consequences of subsoil use shall be applied in the amount of fifty percent after two years, seventy-five percent after three years, and in full from the fourth year after the entry into force of this Law.

Article 169. Recognition of some legislative acts of the Republic of Uzbekistan as invalid

To declare as invalid:

1) Law of the Republic of Uzbekistan “On Subsoil” dated September 23, 1994 No. XII-2018 (Bulletin of the Supreme Council of the Republic of Uzbekistan, 1994, No. 10, Art. 252);

2) Resolution of the Supreme Council of the Republic of Uzbekistan dated September 23, 1994 No. 2019-XII “On the entry into force of the Law of the Republic of Uzbekistan “On Subsoil” (Bulletin of the Supreme Council of the Republic of Uzbekistan, 1994, No. 10, Art. 253);

3) Section XIII of the Law of the Republic of Uzbekistan dated December 27, 1996 No. 357-I “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1997, No. 2, Art. 56);

4) paragraph 11 of the Law of the Republic of Uzbekistan dated May 1, 1998 No. 621-I “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1998, No. 5-6, art. 102);

5) Section XI of the Law of the Republic of Uzbekistan dated August 29, 1998 No. 681-I “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1998, No. 9, Art. 181);

6) Section VII of the Law of the Republic of Uzbekistan dated August 31, 2000 No. 125-I “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 2000, No. 7-8, Art. 217);

7) Law of the Republic of Uzbekistan dated December 13, 2002 No. 444-II “On Amendments and Additions to the Law of the Republic of Uzbekistan “On Subsoil” (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 2003, No. 1, Art. 5);

8) Article 3 of the Law of the Republic of Uzbekistan dated December 18, 2007 No. ZRU-133 “On Amendments and Supplements to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of Management in the Field of Industry, Gas Supply and Mining Supervision” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2007, No. 12, Art. 604);

9) Article 5 of the Law of the Republic of Uzbekistan dated January 4, 2011 No. ZRU-278 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2011, No. 1, Art. 1);

10) Article 4 of the Law of the Republic of Uzbekistan dated September 9, 2011 No. ZRU-294 “On Amendments to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the System of Organization and Conduct of Geological Exploration Work” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2011, No. 9, Art. 247);

11) Law of the Republic of Uzbekistan dated December 21, 2011 No. ZRU-310 “On Amendments and Additions to Articles 26 and 27 of the Law of the Republic of Uzbekistan “On Subsoil” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2011, No. 12/2, Art. 362);

12) Article 12 of the Law of the Republic of Uzbekistan dated April 30, 2013 No. ZRU-352 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2013, No. 4, Art. 98);

13) Article 6 of the Law of the Republic of Uzbekistan dated April 25, 2016 No. ZRU-405 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2016, No. 4, Art. 125);

14) Article 22 of the Law of the Republic of Uzbekistan dated September 14, 2017 No. ZRU-446 “On Amendments and Additions, as well as Recognition as Invalid of Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2017, No. 9, Art. 510);

15) Article 15 of the Law of the Republic of Uzbekistan dated April 18, 2018 No. ZRU-476 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2018, No. 4, Art. 224);

16) Article 14 of the Law of the Republic of Uzbekistan dated July 23, 2018 No. ZRU-486 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the Activities of Certain State Bodies and Organizations” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2018, No. 7, Art. 431);

17) Article 6 of the Law of the Republic of Uzbekistan dated May 10, 2019 No. ZRU-536 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the Activities of Certain State Bodies and Organizations” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2019, No. 5, Art. 261);

18) Article 1 of the Law of the Republic of Uzbekistan dated January 7, 2020 No. ZRU-601 “On Amendments and Supplements, as well as Recognition as Invalid of Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of the Tax Code of the Republic of Uzbekistan” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2020, No. 1, Art. 2);

19) Article 6 of the Law of the Republic of Uzbekistan dated December 3, 2020 No. ZRU-653 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2020, No. 12, Art. 691);

20) Article 50 of the Law of the Republic of Uzbekistan dated April 21, 2021 No. ZRU-683 "On Amendments to Certain Legislative Acts of the Republic of Uzbekistan" (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2021, Appendix to No. 4);

21) Article 7 of the Law of the Republic of Uzbekistan dated October 12, 2021 No. ZRU-721 “On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of the Law of the Republic of Uzbekistan “On Licensing, Permitting and Notification Procedures” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2021, No. 10, Art. 968).

Article 170. Ensuring the implementation, communication, explanation of the essence and meaning of this Law

The Ministry of Mining and Geology of the Republic of Uzbekistan and other interested organizations shall ensure the implementation, dissemination to the performers and explanation to the population of the essence and significance of this Law.

Article 171. Bringing legislation into line with this Law

To the Cabinet of Ministers of the Republic of Uzbekistan:

bring government decisions into compliance with this Law;

ensure the revision and repeal by the republican executive authorities of their regulatory legal acts that contradict this Law.

Article 172. Entry into force of this Law

This Law shall enter into force three months after the date of its official publication.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent city,

October 31, 2024

№ ЗРУ-987

(National Legislation Database, 01.11.2024, No. 03/24/987/0873)