Legal Encyclopedia. The letter C

Production Sharing Agreement

-dogovor, according to which the Russian Federation provides the subject

business (investor) on a reimbursable basis and for a fixed term exclusive rights for prospecting, exploration, extraction of mineral resources in the subsoil area specified in the agreement, and to conduct related work, and the investor undertakes to conduct these works at his own expense and on your own risk.

SR VP is regulated by the Law of the Russian Federation dated 30 December 1995 "On Production Sharing Agreements".

S. RP defines all necessary conditions related to subsoil use, including conditions and procedures for production sharing agreement between the parties.

Parties S. RP are:

1) The Russian Federation, on whose behalf the agreement are the Russian government and executive authority of the subject of the Russian Federation on whose territory is located

provided for the use of subsoil plot, or their authorized bodies;

2) investors - legal entities and created on the basis of joint activity agreement and do not have the status of legal person of association of legal entities, which invest his own, borrowed or attracted funds (property or property rights) in the exploration and extraction of mineral raw materials and are subsoil users under the terms of the agreement.

The right to use subsoil blocks under production sharing is provided to the investor under the agreement. The right to use the subsoil plot to certify the license, which is issued to the investor executive body of the corresponding subject of the Russian Federation and the federal agency managing the state subsoil fund or its territorial subdivisions shall be issued for the duration of C within 30 days from the date of signature S. The above license may be extended or re-registration of a cease to have effect in accordance with the terms of S.

VS RP should prescribe its duration, which may be extended. The agreement on the initiative of the investor, as well as subject to their assumed obligations be extended for a period of time sufficient to complete the cost-effective production of mineral raw materials and ensure the rational use and protection of subsoil.

S. RP is as follows. It can be concluded with the winner of the auction conducted in the manner prescribed by law, and the parties have agreed deadlines, but not later than one year from the date of creation of the commission. The winner of the auction is the bidder who offered the highest price for the right to sign the agreement. Terms of the auction should be provided for the participation of Russian entities in the implementation of agreements in the proportions determined by the Russian Government and the relevant executive authorities of the RF subjects. With respect to subsoil plots located on the territories of traditional residence and economic activities of indigenous minorities, the terms of the auction is to be provided for the payment of appropriate compensation for the violation of the traditional nature.

Working conditions of subsoil use, preparation of a draft SR VP and negotiating with investors for each subsurface object by the Commission, established in accordance with the procedure established for the creation of inter-agency coordination and advisory bodies formed

federal executive authorities, with the participation of executive body of the corresponding subject of the Russian Federation. Said commission shall be created no later than six months from the date of announcement of the results of the auction. The commission includes representatives of the federal bodies of executive power. If necessary to the work of the commission involved in the production and research organizations as well as experts and consultants.

Signing SR VP of the state is carried out by the Russian Government and the executive body of the corresponding subject of the Russian Federation. Signing S. RP in terms agreed by the parties is carried out at the conclusion of negotiations between the authorized representatives of the parties, which resulted in all the terms of the agreement, is not compulsory auction conditions must be agreed upon.

Agreement provided for the work and activities carried out in accordance with the programs, projects, plans and budgets, which are approved in the manner determined by the agreement. The works are performed in compliance with the requirements of the law, and duly approved standards (norms, rules) of safe operation, conservation of resources, the environment and public health.

Manufactured products are to be divided between the state and the investor in accordance with the AS, provided that the conditions and procedure:

1) determine the total volume of production and its value;

2) defining a portion of output, which is transmitted to the property investor to recover its costs for execution of works on the S .;

3) The section between the state and the investor of profit production, which is understood as produced in the performance agreements of the products after deduction of the production value equivalent of which is used for payment of the tax on mineral extraction and production of the compensation for the accounting (cash Ogooue) period;

4) transfer of state-owned investor to him in accordance with the terms of the agreement of the goods manufactured or its equivalent value;

5) receipt of goods manufactured by the investor, which he owns.

In accordance with Art. 9 of the Law of the manufactured products, which under the terms of SR VP investor's share belongs to him by right of ownership. The property, newly created or acquired by the investor and used them to carry out work on the SR P., is the property of the investor, unless otherwise provided by S.

When the SR P. law provides a special procedure for calculation and payment of taxes and fees established by the Tax Code of the Russian Federation and other legislative acts of the Russian Federation on taxes and fees.

The investor pays:

1) one-off payments for subsoil use upon the occurrence of events specified in the SR P. and licenses (bonuses);

2) charge for geological information on subsoil;

3) the annual contractual payments for the waters and seabed, paid in accordance with the procedure established by the agreement;

4) The fee for participation in the competition (auction);

5) The fee for issuing a license;

6) regular payments for subsoil use (rentals);

7) compensation for government spending on prospecting and exploration of mineral resources;

8) compensation for damage caused as a result of work on the SR P. Indigenous Peoples of the Russian Federation in places of their traditional residence and economic activity.

The amounts of these payments, as well as the terms of payment are determined by the terms of the agreement.

The law grants the investor the right to transfer its rights and obligations under the C. RP to any natural or legal person, but only with the consent of the State, provided that such persons have sufficient financial and technical resources and experience of management, necessary for the performance of work on C. Transfer of rights and obligations under the agreement is made in writing, through the development of a special act, which is an integral part of the SR P., in the manner and within the terms defined by C, and accompanied by a corresponding re-issuance of the license for subsoil use within 30 days the date of signing of the act.

During the execution of the SR P. federal authorities in accordance with their competence, together with the public authorities of the corresponding subject of the Russian Federation state control.

For non-performance or improper performance of its obligations under the SR P. parties bear responsibility established by the SR P. compliance with the civil legislation of the Russian Federation.

Action C. RP terminated on expiry or earlier by agreement of the parties, as well as on other grounds and in the manner stipulated in S. in accordance with the law.