Legislation
Specifics of Subsoil Use in Kazakhstan. Legal Aspects
Maulen Namazbekov, Chief Manager, KazEnergy Association
As a rule, those activities, which are focused on production, processing, consumption and sale of natural resources, demand special attention, taking into account specific regulations applying to this industry.
Over the years of independence, Kazakhstan has developed pretty efficient regulatory base for subsoil use in accordance with the international standards. The purpose of such regulatory base is to regulate operations related to subsoil use in such way as to protect interests of the country and its natural resources, ensure wise utilization and protection of Kazakhstan’s subsurface resources, as well as protect interests of subsoil users, create conditions for equal development of different economic activities, consolidate legality of subsoil use.
Today, activities of subsoil users in Kazakhstan are regulated by the Constitution of Kazakhstan, the Law of the Republic of Kazakhstan (RK) On Subsoil and Subsoil Use of June 24, 2010, Tax Code of the Republic of Kazakhstan of December 10, 2008, other Regulations and Resolutions of the Government of the Republic of Kazakhstan (GOK).
This regulatory base allows one to build sustainable and balanced legal relations between the government and subsoil users, also, by determining rights, responsibilities, guarantees, rules and taxation.
The Rights and the Rules
The Subsoil Use Right is, first of all, the right to possess and use subsurface within the boundaries of contracted land plot, granted to a subsoil user under the law.
The Right is granted to perform such operations as: national geological subsurface surveys; exploration; production; combined exploration and production; construction and/or operation of subsurface facilities not related to exploration or production. [1] In fact, the whole spectrum of potential activities for profit and in the interests of the country is covered for the sphere of subsoil use.