Regulation Of The Minister Of Energy And Mineral Resources No. 3 Of 2010

Original Language Title: Peraturan Menteri Energi Dan Sumber Daya Mineral Nomor 3 Tahun 2010

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Read the untranslated law here: http://peraturan.go.id/inc/view/11e44c51b6de85b0b97e313233373337.html

BN 042-2010 REPUBLIC INDONESIA No. 42, 2010 Ministry of MINERAL RESOURCES. The allocation. Utilization. Natural Gas. REGULATION of the MINISTER of ENERGY and MINERAL RESOURCES of the REPUBLIC of INDONESIA number 03 of 2010 on the ALLOCATION and UTILIZATION of NATURAL GAS to FULFILL DOMESTIC NEEDS with the GRACE of GOD ALMIGHTY the MINISTER of ENERGY and MINERAL RESOURCES of the REPUBLIC of INDONESIA, Considering: a. that the gas is a natural resource which is not renewable so needs to be as big as it is used on an ongoing basis for the prosperity of the people and the expediency principle-oriented implementation of the policy is intended to support national energy independence and resilience; b. that based on considerations as referred to in letter a and in accordance with Article 47, article 48, article 50, article 86 and article 87 the Government Regulation Number 35 of 2004 as it has the last two times with the Government Regulation Number 55 in 2009, needs to set a regulation of the Minister of energy and Mineral resources of the allocation and utilization of Natural Gas for Domestic needs of Fulfillment; Remember: 1. Act No. 22 of 2001 concerning oil and Gas (State Gazette of the Republic of Indonesia year 2001 Number 136, Supplement State Gazette www.djpp.depkumham.go.id 2010, no. 42 2 Indonesia Number 4152); 2. Act No. 30 of 2007 about energy (Gazette of the Republic of Indonesia Number 96 in 2007, an additional Sheet of the Republic of Indonesia Number 4776); 3. Government Regulation Number 35 of 2004 concerning the business activities of the upstream oil and Gas (State Gazette of the Republic of Indonesia Number 123 in 2004, an additional Sheet of the Republic of Indonesia Number 4435) as has already been twice amended last by the Government Regulation Number 55 in 2009 (State Gazette of the Republic of Indonesia Number 128 in 2009, an additional Sheet of the Republic of Indonesia Number 5047); 4. Presidential Decree Number 83/P in 2009 on October 21, 2009; 5. The decision of the Minister of energy and Mineral resources, Number 1088 K/20/MEM/2003 of 17 September 2003 on Guidelines implementation, Coaching, supervision, regulation, and control of business activities Upstream Oil and Gas Downstream business activities and oil and Gas; 6. Regulation of the Minister of energy and Mineral resources Number 0030 2005 20 July 2005 about the Organization and the work of the Department of energy and Mineral resources; Decide: Define: REGULATION Of The MINISTER Of ENERGY And MINERAL RESOURCES ALLOCATION And ASSIGNMENT POLICIES On UTILIZATION Of NATURAL GAS For The FULFILLMENT Of The NEEDS In The Country. CHAPTER I GENERAL PROVISIONS article 1 In this ministerial regulation is: 1. Natural Gas is the result of a natural process in the form of hydrocarbons in atmospheric pressure and temperature conditions in the form of gas phase process obtained from oil and Gas mining. www.djpp.depkumham.go.id 2010, no. 42 3 2. The region is a particular area within the Law for the implementation of Indonesia's mining exploration and exploitation. 3. The contractor is a business entity or a business form that is specified by the Minister to carry out exploration and exploitation in the area Work based on a contract of cooperation with the Implementing Agencies. 4. Utilization of Natural Gas is the volume of Gas that is able to supply needs for energy and raw materials in a particular activity. 5. The balance of Gas Indonesia is estimated demand and supply of Natural Gas within the country for a certain period. 6. Keekonomian field is keekonomian benefits from development activities in the field of a working area, which will provide an optimal state of acceptance and will provide adequate income for the contractor. 7. the Minister is the Minister whose duties and responsibilities include business activities of oil and Gas. 8. The implementing Agency is an agency established to do control the upstream business activities in the field of oil and Gas. CHAPTER II DETERMINATION of the ALLOCATION POLICY and the UTILIZATION of NATURAL GAS article 2 (1) the determination of the allocation policy and the utilization of Natural Gas aimed to guarantee the efficiency and effectiveness of the availability of Natural Gas as a source of energy as well as raw materials for domestic-oriented benefit Natural Gas. (2) the Minister establishes the policy of the allocation and utilization of Natural Gas as intended in paragraph (1) with the exhaust in order for domestic needs can be fulfilled optimally. (3) the policy referred to in subsection (2) are defined taking into account: a. the public interest; b. interests of the State; c. national energy policy; www.djpp.depkumham.go.id 2010, no. 42 4 d. reserves and Gas market opportunities; e. infrastructure available or in perencanaaan; f. Keekonomian the field of oil and Gas reserves which will be allocated. (4) in setting the policy referred to in subsection (2) the Minister is considering proposals for the implementing Agency. Article 3 (1) the Minister determines the priority of utilization of Natural Gas for the fulfillment of the needs in the country to be used as a source of energy, raw materials, as well as other necessities by observing the keekonomian price of Natural Gas is concerned. (2) in determining the priority of Gas Utilization as referred to in paragraph (1), the Minister of policy regarding the balance of Gas Indonesia. (3) policies regarding the balance of Gas Indonesia as referred to in paragraph (2) updated and established each year. Article 4 (1) in order to support the fulfillment of Natural Gas for domestic needs, the contractor is obligated to join the meet the needs of Gas within the country. (2) the obligation of the contractor to meet the requirements referred to in subsection (1) done by handing a 25% (twenty-five perseratus) results from the production of Natural Gas part contractor. (3) in the case of domestic Gas needs have not been met, the Minister may establish a policy of allocation and utilization of Natural Gas as stipulated in article 2 paragraph (2) of Natural Gas reserves that can be manufactured from any Gas field Earth in a working area. (4) the fulfillment of domestic Gas needs as referred to in paragraph (3) still pay attention to the availability of technical infrastructure, operation and Keekonomian of the field. Article 5 in order to support the fulfillment of Natural Gas for domestic needs as referred to in article 4, the Minister may establish policies Supply Natural Gas that comes from imports. www.djpp.depkumham.go.id 2010, no. 42 5 article 6 (1) the Minister establishes the policy of the allocation and utilization of Natural Gas for domestic needs based on the balance of Natural Gas Indonesia as stipulated in article 3 paragraph (2). (2) in the framework of the policy assignment Allocation and utilization of Natural Gas as intended in paragraph (1), the implementing Agency proposes to the Minister regarding the plan of Allocation and utilization of Natural Gas based on the Keekonomian Field of the Earth's Gas reserves that can be manufactured at a work-area. (3) the determination of the Allocation Policy and the utilization of Natural Gas as mentioned in subsection (1) is executed with priority of utilization of Natural Gas to: a. an increase in oil and Gas production Nationwide; b. the fertilizer industry; c. the provision of electric power; d. other industries. (4) the priority of Gas Utilization as referred to in paragraph (3) is conducted with consideration of needs in the area of Natural Gas. (5) in the event that the Minister has established a policy of Allocation and utilization of Natural Gas as intended in paragraph (1), the implementing Agency is obligated to draw up development plans of reserve Gas field of oil and Gas field that will be manufactured at a work-area. Article 7 in the case studies that were conducted based on the availability of infrastructure, operational and technical Keekonomian the field referred to in article 4 paragraph (4) and of the results of the study of field development plans Gas reserves as referred to in article 6 paragraph (5) would not be met, the Minister may establish other policies. Article 8 in the event of domestic Gas needs have been met, can the Minister may establish other policies over the allocation and utilization of Natural Gas. www.djpp.depkumham.go.id 2010, no. 42 6 CHAPTER III TRANSITIONAL PROVISIONS article 9 at the time of this Ministerial Regulation took effect, assignment and utilization of Natural Gas which has been implemented and has a contract to buy and sell Natural Gas, Head of Agreement (HoA), a Memorandum of Understanding (MoU) or have entered the stage of negotiations can still take place. CHAPTER IV CLOSING PROVISIONS article 10 this Ministerial Regulation comes into force on the date specified. In order to make everyone aware of it, ordered the enactment of this Ministerial Regulation with its placement in the news of the Republic of Indonesia. Established in Jakarta on January 27, 2010 the MINISTER of ENERGY and MINERAL RESOURCES of the REPUBLIC of INDONESIA, DARWIN ZAHEDY SALEH Enacted in Jakarta on January 27, 2010 the MINISTER of LAW and HUMAN RIGHTS Republic of INDONESIA, PATRIALIS AKBAR www.djpp.depkumham.go.id