RUSSIAN COUNCIL DRAFTS LAW TO STREAMLINE OFFSHORE REGULATIONS
The Russian Supreme Soviet's Council of Nationalities has adopted on first reading a bill to streamline the licensing procedure for extracting natural resources from the nation's continental shelf.
Purpose of the proposed legislation is to rectify old Soviet laws that diverge in many respects from current international legal norms. The bill was drafted in anticipation of expanding shelf development by Russian and foreign companies, according to the Moscow business publication Commersant.
It said the new legislation sets conditions for holding auctions and tenders and the procedure for issuing licenses to develop shelf areas. Members of a parliamentary commission hope imposition of standard requirements to be met by license holders will help introduce economic and environmental order related to Russian continental shelf development.
The proposed legislation authorizes the government to determine size of licensed areas and number of companies that can take part in their development. It also clearly defines the powers of executive authorities to regulate the activities of continental shelf developers after they have received licenses.
'thus, Commersant explained, ministries and departments will no longer regulate and review shelf development on the basis of bylaws of their own making.
WHAT THE DRAFT LAW PROVIDES
In brief, the draft law provides that:
- The sovereign right to explore and exploit the continental shelf shall belong to the Russian federation.
- Exploration and development of mineral resources shall be based on licenses issued by the government.
- Licenses shall be issued to Russian and foreign nationals and legal entities.
- Licenses will be terminated upon expiration of the period for which they were issued, upon completion of work, upon a decision made by the license holder, and upon decision of the agency that issued the license.
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