The Legal System
The legislative basis for regulating relations in the field of subsoil use is the Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use“ (hereinafter – the Code on Subsoil), the Code of the Republic of Kazakhstan “On Taxes and other mandatory payments to the Budget (Tax Code)“ (hereinafter – the Tax Code), the Code of the Republic of Kazakhstan “Environmental Code of the Republic of Kazakhstan“ (hereinafter – The Environmental Code) and other subordinate regulatory legal acts related to the sphere of subsurface use.
The main state bodies regulating relations in the field of subsoil use are:
– in the field of oil and gas, uranium production – the Ministry of Energy of the Republic of Kazakhstan (hereinafter – the Authorized body in the field of internal Affairs), which, in accordance with the Subsoil Code and in accordance with the Decree of the Government of the Republic of Kazakhstan (hereinafter – PP RK) dated September 19, 2014 No. 994, forms and implements state policy, coordinates the management process in the oil and gas, petrochemical industry, uranium mining, transportation of hydrocarbons and exercises other powers in accordance with Article 62 of the Subsoil Code;
– in the field of mining of solid minerals – the Ministry of Industry and Infrastructure Development (hereinafter – the Authorized Body in the field of mineral resources), which, according to the Code on Subsoil and PP of the Republic of Kazakhstan dated December 29, 2018 No. 936, provides guidance in the field of state management of subsoil use in terms of mineral resources, with the exception of uranium mining, regulates the process of exploration and mining of TPI, and exercises other powers in accordance with article 61 of the Subsoil Code.
In Kazakhstan, the main legislative act regulating relations in the field of subsoil use is the Code of the Republic of Kazakhstan dated December 27, 2017 “On Subsoil and Subsoil Use“. It is aimed at simplifying the procedures for granting exploration and production rights in accordance with international practice, the introduction of an international system of reporting standards and the regulation of TPI resources and reserves. The Subsoil Code also regulates the right of subsurface use.
The right to use the subsoil of the Republic of Kazakhstan, according to the legislation, is paid (paid) within the allocated area, may be permanent or temporary, alienable or inalienable.
The subjects of this right may be Kazakhstani and foreign legal entities and individuals, while several persons at the same time may be holders of the right to subsurface use.
The right of subsurface use is granted for the following operations: