On Amendments And Additions To The Federal Law On Production Sharing Agreements "

Original Language Title: О внесении изменений и дополнений в Федеральный закон "О соглашениях о разделе продукции"

Read the untranslated law here: http://pravo.gov.ru/proxy/ips/?doc_itself=&infostr=x&backlink=1&fulltext=1&nd=102057519

RUSSIAN FEDERATION FEDERAL LAW on amendments and additions to the Federal law on production sharing agreements "adopted by the State Duma December 9, 1998 the year approved by the Federation Council December 23, 1998 year Article 1. To amend the Federal law on production sharing agreements "(collection of laws of the Russian Federation, 1996, no. 1, item 18) the following amendments and supplements: 1. In article 2, paragraph 2 shall be amended as follows:" 2. the conditions of subsoil use, set out in the agreement, shall be governed by the laws of the Russian Federation.
Right to use subsoil plot may be restricted, suspended or terminated under the terms of an agreement concluded in accordance with the legislation of the Russian Federation. ";
in paragraph 3: the first paragraph, after the words "shall be fixed by the Federal law" add the words "except as provided in paragraph 5 of this article.";
second paragraph worded as follows: "the draft federal laws, as well as the draft federal law on amendments and additions to these federal laws are made by the State Duma of the Federal Assembly of the Russian Federation the right to legislative initiative and are considered by the State Duma of the Federal Assembly of the Russian Federation in the presence of the conclusions of the Government of the Russian Federation and of the outcome of the legislative (representative) bodies of constituent entities of the Russian Federation in the territories which are appropriate subsoil areas.";
supplement paragraphs read as follows: "in lists of subsoil areas included subsoil areas for which there is a justification for the Government of the Russian Federation of the feasibility of introducing such subsoil areas in these lists.
With respect to located on the territory of traditional residence and economic activity of the small-numbered indigenous peoples of the subsoil plot requires a decision by the legislative (representative) body of a constituent entity of the Russian Federation on the territory of which is this plot of the subsoil, adopted by taking into account the interests of the small-numbered indigenous peoples, as well as the corresponding local government.
The provision is allowed under the conditions of production of not more than 30 percent of the explored and recorded public mineral balance. ";
Add new paragraphs 4 and 5 to read as follows: "4. the grounds for inclusion in lists of subsoil areas, the right of use which can be granted on conditions of production, is due to objective factors, the unprofitable for subsoil user state and continued development are the core of mineral deposits, if the development of such fields can provide a substantial amount of mining, and the cessation of development lead to negative social impacts;
the lack of financial and technical resources for the development of new large mineral deposits, at the expense of mastery which are needed for social development and economic security of the Russian Federation mining level for the Russian Federation as a whole, as well as for the construction of industrial infrastructure (including transportation of minerals) primarily on the continental shelf of the Russian Federation, in remote and poorly mastered areas;
need to bring special high-cost technologies development of substantial numbers of mineral reserves, located in difficult geological conditions and are remaining for mines, as well as the need to prevent losses of fuel-energy and mineral resources in depths;
the need to attract additional financial and technical resources to ensure environmental safety and protection of mineral resources in development located on specially protected natural territories of large mineral deposits;
the need to ensure the regions its own fuel and energy raw materials, creation of new jobs, ensuring a favourable socio-economic conditions in the regions and localities grant, employment which is at a low level;
the obligations of the Russian Federation to negotiate on terms and conditions of agreements, as well as the availability of results of contests or auctions on present of sites of the subsoil in the conditions of production.
5. In some cases, the lists of subsoil areas, the right to use the terms of production may be granted in accordance with the provisions of this federal law, shall be established on the basis of the decision of the Government of the Russian Federation and of the decision of a public authority of the relevant constituent entity of the Russian Federation without the approval of the federal laws, if the mentioned subsoil areas include mineral deposits: deposits of oil recoverable reserves which amount to 25 million tons;

gas reserves which amount to 250 billion cubic meters;
lode gold deposits, which account for up to 50 tons;
placer gold deposits, the reserves of which are up to 1 ton;
deposits of other minerals, not related to strategic types of minerals and non-currency values. ";
paragraph 4 as subclause 6;
item 5 as subclause 7 to read as follows: "7. Agreements concluded before the entry into force of this federal law, shall be executed in accordance with the defined conditions. The provisions of this Federal Act shall apply to these agreements to the extent that its application does not contradict the terms of such agreements and does not limit the rights acquired and undertaken by investors in accordance with those agreements.
2. In article 6, paragraph 1 after paragraph first supplement paragraphs read as follows: "the terms of the tender or auction shall be provided for participation of Russian legal entities in implementing agreements in fractions, identified by the Government of the Russian Federation and the relevant bodies of executive power of the constituent entities of the Russian Federation.
Regarding subsoil areas located on the territories of traditional Habitat and economic activity of the small-numbered indigenous peoples, conditions of contest or an auction or sole-source providing subsoil areas should be provided for the payment of appropriate compensation for violation of traditional nature use.
The initial conditions of the contests or auctions are based on technical-economic calculations performed on the instructions of the State bodies responsible for conducting contests or auctions. ";
second paragraph of paragraph 1 shall be amended as follows: "agreements are concluded on the basis of the provisions laid down in the legislation of the Russian Federation. Agreement related to the use of the subsoil areas located on the continental shelf of the Russian Federation and (or) within the limits of the exclusive economic zone of the Russian Federation, as well as the agreements concluded in accordance with the second paragraph of paragraph 2 of article 6 hereof, shall be approved by the separate federal laws. ";
paragraph 3 shall be amended as follows: "3. the development of conditions of subsoil use and preparation of a draft agreement for each site subsoil are carried out by the Commission, established by the Government of the Russian Federation in consultation with the executive authorities of the constituent entities of the Russian Federation.
The Commission includes representatives of the federal bodies of executive power, including representatives of the federal authority in the management of the public fund and (or) its territorial units, the representatives of the Executive authority of the relevant constituent entity of the Russian Federation. In cases, if provided by the subsoil areas are located on territories of traditional Habitat and economic activity of the small-numbered indigenous peoples, the Commission includes representatives of the federal authority for socio-economic development of the northern territories of the Russian Federation, as well as representatives of relevant organs of local self-government. In case of need to the work of that Commission involved industrial and scientific organizations, as well as experts and consultants.
Funding related to the development of conditions of competition or auction, drawing up feasibility studies and preparation of the draft agreement, is financed by a portion of the funds received from the implementation of the agreement. "
3. In article 7: second paragraph of paragraph 2 shall be amended as follows: "provision of Russian legal entities the right to participate in the agreement as contractors, suppliers, carriers, or in another capacity on the basis of contracts (contracts) with investors;";
paragraph after paragraph 2 of the second supplement paragraphs read as follows: "the attraction of workers-citizens of the Russian Federation, the amount of which shall be not less than 80 per cent of all involved employees, attract foreign workers only in the initial stages of works by agreement or, in the absence of workers-citizens of the Russian Federation the relevant qualifications;
placing orders for equipment, technical equipment and materials required for geological exploration, extraction and processing of minerals in amounts not less than 70 per cent of the total value of the orders between Russian legal entities or foreign legal persons carrying out relevant activities and registered as taxpayers on the territory of the Russian Federation;

the acquisition of new equipment on a competitive basis and introduction of progressive technologies for operations under the agreement. While Russian goods (equipment, equipment and materials) in reliability, security, quality and delivery time must be competitive in relation to similar foreign products. ";
paragraph 3 shall be amended as follows: "3. When doing work on an agreement on the objects located on the territories of traditional Habitat and economic activity of the small-numbered indigenous peoples, the investor is obliged to take the measures provided for in the legislation of the Russian Federation on protection of original habitats Wednesday and traditional way of life of the small-numbered indigenous peoples, as well as to ensure the payment of appropriate compensation in cases and by the procedure established by the Government of the Russian Federation.";
item 4 shall be amended as follows: "4. The organisation of the performance of the work under the agreement, including the accounting and reporting in accordance with the provisions of article 14 of this federal law, shall be carried out on the instructions of the investor or operator investor agreement. As an operator, a subject which should be limited to the Organization of these works can be created for these purposes, an investor in the territory of the Russian Federation affiliates or entities or engaged by an investor for these purposes, legal entities, and foreign legal entities performing activities on the territory of the Russian Federation. When the investor bears property responsibility before the State for the actions of the operator agreement as if they were his own acts. ";
paragraph 7 shall be amended as follows: "7. In order to coordinate the implementation of the agreement by the parties must be provided for the establishment of a Steering Committee, composed of an equal number of representatives from each party. Membership, rights and obligations of the Managing Committee as well as the conduct of its work is defined by the agreement. Establishment of the Steering Committee shall provide for the equal participation of representatives of the federal bodies of executive power of the State and representatives of the executive authorities of the relevant constituent entity of the Russian Federation, in whose territory is situated the site subsoil. ".
4. paragraph 6 of article 13 shall be amended as follows: "6. The investor carries out compulsory payments of social and health insurance for their workers who are citizens of the Russian Federation, as well as payments into the State Employment Fund of the Russian Federation and the Pension Fund of the Russian Federation in accordance with the legislation of the Russian Federation."
5. Supplement article 19 paragraph 3 to read as follows: "3. the Government of the Russian Federation is in the State Duma of the Federal Assembly of the Russian Federation, at the same time as the draft federal law on the federal budget for the current year on the outcome of the work on realization of production-sharing agreements.
The report is forwarded to the Court of audit of the Russian Federation and is considered by the State Duma of the Federal Assembly of the Russian Federation only on presentation of the accounts Chamber of the Russian Federation of its opinion.
Article 2. This federal law shall enter into force on the day of its official publication.
The President of the Russian Federation, b. Yeltsin, Kremlin, Moscow, N 19 January 7, 1999-FZ