ISSN 1977-091X

Official Journal

of the European Union

C 163

European flag  

English edition

Information and Notices

Volume 61
8 May 2018


Notice No

Contents

page

 

IV   Notices

 

NOTICES FROM MEMBER STATES

2018/C 163/01

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

1

2018/C 163/02

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

15

2018/C 163/03

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

28

2018/C 163/04

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

40

2018/C 163/05

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

53

2018/C 163/06

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

64

2018/C 163/07

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

75

2018/C 163/08

Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

86


EN

 


IV Notices

NOTICES FROM MEMBER STATES

8.5.2018   

EN

Official Journal of the European Union

C 163/1


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/01)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘BOCHNIA’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland

Tel. +48 223692449, +48 223692447; Fax +48 223692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Bochnia’ area, parts of concession blocks Nos 393, 412 and 413.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

234 844,361

560 392,571

2

236 207,601

566 125,529

3

236 033,680

566 047,350

4

235 039,210

566 833,730

5

234 435,410

567 891,740

6

234 919,040

569 098,080

7

236 899,729

569 036,197

8

237 511,440

571 608,680

9

238 239,180

593 185,130

10

235 643,890

601 614,750

11

232 987,600

601 605,370

12

232 886,196

599 665,936

13

234 314,529

599 626,240

14

234 138,401

593 300,605

15

232 471,033

593 346,944

16

231 635,971

587 283,158

17

231 660,823

587 179,604

18

231 619,154

587 161,046

19

231 446,800

585 909,500

20

231 067,402

576 041,636

21

231 535,859

574 373,847

22

231 062,273

574 226,570

23

230 992,755

574 100,127

24

230 896,960

571 608,570

25

230 642,809

560 453,662

Excluding an area, the boundaries of which are defined by the following coordinates:

Point No

X [PL-1992]

Y [PL-1992]

26

236 852,989

574 680,836

27

236 886,191

575 398,936

28

235 707,297

575 415,667

29

235 696,650

574 665,742

30

236 756,068

574 650,707

The surface area of the vertical projection of the area covered by this bidding procedure is 218,90 km2.

The area covered by the bidding procedure is located in Małopolskie Province in the following:

municipalities: Mogilany, Kłaj, Biskupice, Gdów, Bochnia,

towns and municipalities: Skawina, Świątniki Górne, Wieliczka, Niepołomice,

towns: Bochnia, Kraków.

The aim of the works to be carried out in Cambrian, Devonian, Permian, Triassic, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16:00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

name of area: Bochnia

location: onshore; concession blocks 393, 412 and 413

Type of deposit

conventional oil and natural gas deposits

Structural levels

Carpathian orogen, West European platform

Petroleum systems

I – Paleozoic-Mesozoic bedrock petroleum system

II – petroleum system developed in the Carpathian nappes;

III – Carpathian Foredeep autochthonous Miocene petroleum system;

Source rocks

I – Lower Carboniferous carbonate and clastic rocks, Lower Carboniferous clastic rocks

(Productive Carboniferous in paralic and limnic series), (?) Middle Jurassic claystones and mudstones;

II – Lower Cretaceous Cieszyn, Wierzowice, Grodzisk and Lgota shales,

Oligocene menilite shales;

III – Carpathian and Lower Badenian fine-grained clastic rocks

Reservoir rocks

I — Cambrian sandstones; Lower Devonian limestones and Dolomites; Upper Devonian and Lower Carboniferous limestones and Dolomites; Upper Jurassic limestones;

II – flysch of Silesian Nappe: Grodzisk, Wierzowice, Lgota and Istebna strata, Ciężkowickie and Menilite sandstones, Krosno strata, flysch of Subsilesian Nappe: Wierzowice and Lgota strata

III – Carpathian Foredeep autochthonous Miocene clastics (Badenian and Sarmatian)

Seal rocks

I, III – evaporites which seal traps in the Paleozoic-Mesozoic bedrock system, fine-grained Carpathian Foredeep autochthonous Miocene formations

II – fine-grained flysch formations which isolate hydrocarbons present in Carpathian Foredeep Miocene rocks and coarse-grained horizons within the flysch succession

Thickness of overburden

I – autochthonous Miocene claystones, Badenian evaporites and local rocks of the Carpathian flysch (Silesian and Subsilesian nappes): 500-1 000 m

II – impermeable fine-grained flysch formations: 0-100 m

III – argilaceous intra-Miocene lithosomes, flysch of Subsilesian and Silesian nappes: 100-500 m

Trap type

I – structural, stratigraphic

II – structural or structural-lithological, lithological

III – compaction, structural anticlines

Deposits identified in the vicinity (NG — natural gas; OI — oil)

Grabina – Nieznanowice (NG), discovered in 1972; cumulative production (37 years) 161 250 000 m3; balance sheet reserves and resources: 328 000 000  m3, production in 2015: 1 960 000 m3, industrial resources: 12 960 000 m3; non-industrial: 431 770 000 m3.

Grabina – Nieznanowice S (NG), discovered in 1987; cumulative production (22 years) 17 250 000 m3; balance sheet reserves and resources: 205 740 000  m3, production in 2015: 1 960 000 m3, industrial resources: 110 540 000 m3; non-industrial: 95 200 000 m3.

Łapanów (NG), discovered in 2008, cumulative production (2 years) 18 004 000 m3; in 2015: production 17 920 000 m3; reserves and resources (industrial: 307 280 000 m3).

Łąkta (NG, OI) – discovered in 1971, cumulative production: gas from gas horizons (40 years) 96 150 000 m3, gas from condensate horizons (28 years) 721 380 000 m3, condensate (30 years) 50 540 tonnes; in 2015: production — gas 3 020 000 m3, oil — none, reserves and resources — gas 211 720 000 m3, condensate 4 580 tonnes.

Raciborsko (NG), discovered in 1978; cumulative production (37 years) 25 750 000 m3; production in 2015: 220 000 m3, balance sheet reserves and resources: 431 650 000  m3; industrial resources: 16 310 000 m3.

Seismic surveys completed (rightholder)

1976 Brzesko-Pilzno-Olszyny Geofizyka Kraków Sp. z o.o., Kraków (Treasury)

1977 Bochnia-Czchów-Tarnów, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury)

1978 Górnośląskie Zagłębie Węglowe, Przeds, Bad, Geofiz, Warsaw, (Treasury)

1978 Żywiec-Wadowice-Gdów, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury)

1992 Dobczyce-Gdów-Wolica, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)

1993 Liplas-Grobla-Żukowice, [Liplas-Grobla], Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)

1993 Liplas-Puszcza, [Liplas-Grobla-Żukowice], Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)

1994 Lachowice-Myslenice, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)

2003 Puszcza-Krzeczów-Borek, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)

2004 Kamyk-Niepołomice, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)

1987–1989 Niepołomice-Gdów-Myślenice, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury)

Benchmark wells (MD)

Cichawa 8 1 (1 029 m)

Cikowice 1 (1 465,5 m)

Trąbki 1 (862 m)

Mogilany 1 (2 500 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 12 months

scope: geophysical surveys - 2D seismic test (excitation line 50 km in length) or 3D seismic test (excitation area 50 km2)

 

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 4 500 m, with mandatory coring of prospective intervals

 

Stage IV duration: 12 months

scope: analysing the data obtained

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Bochnia’ area during the five-year base period is PLN 47 313,05 (in words: forty-seven thousand, three hundred and thirteen zlotys, five grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

1)

the name (business name) and the registered office of the bidder;

2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

10)

the scope of the geological information available to the bidder;

11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

17)

if a bid is submitted jointly by several entities, it must additionally specify:

a)

the names (business names) and the registered offices of all the entities submitting the bid;

b)

the operator;

c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

2)

proof that a deposit has been lodged;

3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych [Geology and Geological Concessions Department]

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Bochnia’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Mogilany, Kłaj, Biskupice, Gdów and Bochnia, the towns and municipalities of: Skawina, Świątniki Górne, Wieliczka and Niepołomice, and the towns of: Bochnia and Kraków in Małopolskie Province, the boundaries of which are defined by lines joining points (1) to (30) having the following coordinates in the PL-1992 coordinate system:

No

X

Y

1

234 844,361

560 392,571

2

236 207,601

566 125,529

3

236 033,680

566 047,350

4

235 039,210

566 833,730

5

234 435,410

567 891,740

6

234 919,040

569 098,080

7

236 899,729

569 036,197

8

237 511,440

571 608,680

9

238 239,180

593 185,130

10

235 643,890

601 614,750

11

232 987,600

601 605,370

12

232 886,196

599 665,936

13

234 314,529

599 626,240

14

234 138,401

593 300,605

15

232 471,033

593 346,944

16

231 635,971

587 283,158

17

231 660,823

587 179,604

18

231 619,154

587 161,046

19

231 446,800

585 909,500

20

231 067,402

576 041,636

21

231 535,859

574 373,847

22

231 062,273

574 226,570

23

230 992,755

574 100,127

24

230 896,960

571 608,570

25

230 642,809

560 453,662

excluding an area, the boundaries of which are defined by the following coordinates in the PL-1992 coordinate system:

No

X

Y

26

236 852,989

574 680,836

27

236 886,191

575 398,936

28

235 707,297

575 415,667

29

235 696,650

574 665,742

30

236 756,068

574 650,707

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 4 500 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Bochnia’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

1)

in Cambrian, Devonian, Permian, Triassic, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

2)

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Devonian, Permian, Triassic, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene formations.

4.

The surface area of the vertical projection of the area described above is 218,90 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of 10 years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

— subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland ‘Monitor Polski’. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Bochnia’ area’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

1)

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland

2)

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. Force majeure shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights


8.5.2018   

EN

Official Journal of the European Union

C 163/15


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/02)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘SUCHA BESKIDZKA — WIŚNIOWA’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland

Tel. +48 223692449, +48 223692447; Fax +48 223692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Sucha Beskidzka — Wiśniowa’ area, parts of concession blocks Nos 412, 413, 432 and 433.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

237 088,562

543 233,918

2

230 254,640

543 416,610

3

218 462,260

543 731,870

4

218 661,710

552 238,180

5

219 634,170

553 786,280

6

218 677,070

553 795,860

7

218 918,270

574 085,440

8

221 028,900

577 051,280

9

221 144,840

580 743,360

10

219 005,580

580 176,250

11

199 583,780

580 168,790

12

200 075,620

536 193,520

13

237 064,531

535 946,928

The surface area of the vertical projection of the area covered by this bidding procedure is 981,67 km2.

The area covered by the bidding procedure is located in Małopolskie Province in the following:

municipalities: Czernichów, Mszana Dolna, Pcim, Lubień, Raciechowice, Tokarnia, Wiśniowa, Jordanów, Bystra-Sidzina, Budzów, Zawoja, Stryszawa, Zembrzyce, Brzeźnica, Stryszów, Mucharz, Lanckorona, Spytkowice, Tomice,

towns and municipalities: Dobczyce, Myślenice, Sułkowice, Rabka-Zdrój, Maków Podhalański, Wadowice, Kalwaria Zebrzydowska,

towns: Mszana Dolna, Jordanów, Sucha Beskidzka.

The aim of the works to be carried out in Cambrian, Devonian, Carboniferous, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16.00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

Name of area: Sucha Beskidzka — Wiśniowa

Location: onshore; concession blocks 412, 413, 432 and 433

Type of deposit

conventional oil and natural gas deposits

Structural levels

Carpathian orogen, West European platform

Petroleum systems

I — Paleozoic-Mesozoic bedrock petroleum system

II — petroleum system developed in the Carpathian nappes;

III — Carpathian Foredeep autochthonous Miocene petroleum system;

Source rocks

I — Lower Carboniferous carbonate and clastic rocks, Lower Carboniferous clastic rocks

(Productive Carboniferous in paralic and limnic series), (?) Middle Jurassic claystones and mudstones;

II — Lower Cretaceous Cieszyn, Wierzowice, Grodzisk and Lgota shales,

Oligocene menilite shales;

III — Carpathian and Lower Badenian fine-grained clastic rocks

Reservoir rocks

I — Cambrian sandstones; Lower Devonian limestones and Dolomites; Upper Devonian and Lower Carboniferous limestones and Dolomites; productive Carboniferous clastics; Upper Jurassic limestones;

II — flysch of Magura Nappe, Dukla/Grybów Nappe, Subsilesian Nappe, Silesian Nappe

III — Miocene foredeep sandstones and mudstones

Seal rocks

I — fine-grained Carboniferous formations,

fine-grained Carpathian Foredeep autochthonous Miocene formations;

II, III — fine-grained flysch formations, fine-grained Carpathian Foredeep autochthonous Miocene formations

Thickness of overburden

I — 2 000 -4 500 m

II — 500-1 000 m

III — 2 000 -3 800 m

Trap type

I — structural, stratigraphic

II — structural or structural-lithological, lithological

III — compaction anticlines, structural, stratigraphic

Deposits identified in the vicinity (NG — natural gas; OI — oil)

Lachowice — Stryszawa (NG, OI) — discovered in 1995, reserves and resources 240 000 000 m3;

Łapanów (NG) — discovered in 2008, cumulative production (2 years) 18 004 000 m3; in 2015: production 17 920 000 m3; reserves and resources (industrial: 307 280 000  m3);

Łąkta (NG, OI) — discovered in 1971, cumulative production: gas from gas horizons (40 years) 96 150 000 m3, gas from condensate horizons (28 years) 721 380 000 m3, condensate (30 years) 50 540 tonnes; in 2015: production — gas 3 020 000 m3, oil — none, reserves and resources — gas 211 720 000 m3, condensate 4 580 tonnes;

Słopnice (NG, OI) — discovered in 1973, cumulative production (36 years): 42 020 000  m3; in 2015: production — none, reserves and resources after 2012 — gas 80 000 000  m3, condensate 1 500 tonnes, industrial resources after 2015 — none.

Seismic surveys completed (rightholder)

1972. Andrychów-Jordanów Myślenice-Wiśniowa Geofizyka Kraków Sp. z o.o. (Treasury);

1973. Andrychów-Myślenice Geofizyka Kraków Sp. z o.o. (Treasury);

1973. Andrychów-Myślenice-Rabka Geofizyka Kraków Sp. z o.o. (Treasury);

1976. Sucha-Rabka Geofizyka Kraków Sp. z o.o. (Treasury);

1978. Żywiec-Wadowice-Gdów Geofizyka Kraków Sp. z o.o. (Treasury);

1978-1984. Górnośląskie Zagłębie Węglowe Przeds. Bad. Geofiz. (Treasury);

1988. Niepołomice-Gdów-Myślenice Geofizyka Kraków Sp. z o.o. (Treasury);

1986-1989. Skoczów-Wadowice-Sucha [Wysoka] Geofizyka Kraków Sp. z o.o. (Treasury);

1986-1989. Skoczów-Wadowice-Sucha Geofizyka Kraków Sp. z o.o. (Treasury);

1989-1991. Dobczyce-Gdów-Wolica Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

1989-1991. Skoczów-Wadowice-Sucha Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

1992. Myślenice-Limanowa-Czchów Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

1993-1995. Lachowice-Myslenice Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

1993. Lachowice-Myslenice [Zagorzyce] Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

1994-1995. Myślenice-Limanowa-Czchów Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

1995. Żywiec-Wadowice Geofizyka Kraków Sp. z o.o. (PGNiG S.A);

1997-1998. Zawoja-Sucha Beskidzka Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

2001-2002. Raciechowice-Stadniki Geofizyka Kraków Sp. z o.o. (PGNiG S.A.);

2012. Karpaty West, Budzow Project Geofizyka Kraków Sp. z o.o. (Energia Karpaty Zachodnie)

Benchmark wells (TVD)

Potrójna IG-1 (3 701 m)

Tokarnia IG-1 (3 936,5 m)

Trzebunia IG-1 (3 053 m)

Jordanów IG-1 (3 877,0 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 12 months

scope: geophysical surveys — 2D seismic test (excitation line 50 km in length)

 

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 4 500 m, with mandatory coring of prospective intervals

 

Stage IV duration: 12 months

scope: analysing the data obtained.

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Sucha Beskidzka — Wiśniowa’ area during the five-year base period is PLN 212 178,15 (in words: two hundred and twelve thousand, one hundred and seventy-eight zlotys, fifteen grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

(1)

the name (business name) and the registered office of the bidder;

(2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

(3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

(4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

(5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

(6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

(7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

(8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

(9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

(10)

the scope of the geological information available to the bidder;

(11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

(12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

(13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

(14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

(15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

(16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

(17)

if a bid is submitted jointly by several entities, it must additionally specify:

(a)

the names (business names) and the registered offices of all the entities submitting the bid;

(b)

the operator;

(c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

(1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

(2)

proof that a deposit has been lodged;

(3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

(4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

(5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

(6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department)

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warzsawa/ Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Sucha Beskidzka — Wiśniowa’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Czernichów, Mszana Dolna, Pcim, Lubień, Raciechowice, Tokarnia, Wiśniowa, Jordanów, Bystra-Sidzina, Budzów, Zawoja, Stryszawa, Zembrzyce, Brzeźnica, Stryszów, Mucharz, Lanckorona, Spytkowice and Tomice, the towns and municipalities of: Dobczyce, Myślenice, Sułkowice, Rabka-Zdrój, Maków Podhalański, Wadowice and Kalwaria Zebrzydowska, and the towns of: Mszana Dolna, Jordanów and Sucha Beskidzka in Małopolskie Province, the boundaries of which are defined by lines joining points (1) to (13) having the following coordinates in the PL-1992 coordinate system:

No

Coordinates

X

Y

1

237 088,562

543 233,918

2

230 254,640

543 416,610

3

218 462,260

543 731,870

4

218 661,710

552 238,180

5

219 634,170

553 786,280

6

218 677,070

553 795,860

7

218 918,270

574 085,440

8

221 028,900

577 051,280

9

221 144,840

580 743,360

10

219 005,580

580 176,250

11

199 583,780

580 168,790

12

200 075,620

536 193,520

13

237 064,531

535 946,928

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 4 500 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Sucha Beskidzka — Wiśniowa’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

(1)

in Cambrian, Devonian, Carboniferous, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

(2)

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Devonian, Carboniferous, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene formations.

4.

The surface area of the vertical projection of the area described above is 981,67 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of 10 years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

— subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland Monitor Polski. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Sucha Beskidzka — Wiśniowa” areafg’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

(1)

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland.

(2)

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. Force majeure shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights


8.5.2018   

EN

Official Journal of the European Union

C 163/28


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/03)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘ZŁOTÓW — ZABARTOWO’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland

Tel. +48 223692449, +48 223692447; Fax +48 223692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Złotów-Zabartowo’ area, parts of concession blocks Nos 126, 127, 146 and 147.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

595 210,978

355 930,043

2

620 491,445

375 248,551

3

619 965,853

400 258,032

4

604 743,941

399 937,404

5

581 913,046

381 692,432

The surface area of the vertical projection of the area covered by this bidding procedure is 1 070,01 km2.

The area covered by the bidding procedure is located in the following:

municipalities: Kaczory, Białośliwie, Miasteczko Krajeńskie, Złotów, Lipka, Zakrzewo,

towns and municipalities: Łobżenica, Wysoka, Wyrzysk, Krajenka, towns: Złotów in Wielkopolskie Province, and

municipalities: Sadki,

towns and municipalities: Mrocza, Sępólno Krajeńskie, Więcbork in Kujawsko-Pomorskie Province.

The aim of the works to be carried out in Permian formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16.00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

Name of area: Złotów-Zabartowo

Location: onshore; concession blocks 126, 127, 146 and 147

Type of deposit

Conventional and unconventional for natural gas

Structural levels

Lower Paleozoic

Upper Paleozoic

Permian-Mesozoic

Petroleum systems

I — Carboniferous and Permian (Rotliegend)

II — Zechstein (Main Dolomite)

Source rocks

I — Lower Carboniferous claystones and mudstones

II — Main Dolomite formations

Reservoir rocks

I — Permian sandstones

II — Main Dolomite formations

Seal rocks

I — Zechstein evaporitic formations; argillaceous rocks in clusters between potential reservoir Rotliegend formations

II — Zechstein evaporitic formations;

Thickness of overburden

> 2 000 m

Trap type

I — Carboniferous — stratigraphic and tectonic

I — Rotliegend — structural, tectonic, lithological

II — Main Dolomite — lithological-facial, structural

Deposits identified in the vicinity (NG — natural gas; OI — oil)

Wierzchowo (NG), discovered in 1971, cumulative production 514 020 000 m3 (42 years);

in 2015: production — none, reserves and resources: gas 10 780 000 m3, industrial resources 10 690 000 m3.

Seismic surveys completed (rightholder)

1977 Więcbork–Żychlin (Treasury)

1980 Piła–Bydgoszcz (Treasury)

1981 Bydgoszcz area (Treasury)

1985 Wałcz–Gołańcz (Treasury)

1987 Szczecinek–Złotów [Szczecinek–Lędyczek] (Treasury)

1986-1987 Szczecinek–Chojnice [Człuchów–Debrzno] (Treasury)

1988-1989 Białogard–Czarne–Wilcze [Okonek-Lędyczek] (PGNiG S.A.)

1986-1989 Processing of seismic surveys in the area [Okonek], reinterpretation (PGNiG S.A.)

1989 Białogard–Czarne–Wilcze [Chojnice–Kamień Krajeński] (PGNiG S.A.)

1989-1991 Białogard–Czarne–Wilcze [Debrzno-Złotów, Debrzno] (PGNiG S.A.)

1993 Białogard–Czarne–Wilcze [Tuchola–Wilcze, Sępólno Krajeńskie–Wilcze] (PGNiG S.A.)

1993 Processing of seismic surveys carried out in the Bydgoszcz area, sheet 148, reinterpretation (PGNiG S.A.)

1994 Białogard–Czarne–Wilcze [Człuchów–Debrzno–Zabartowo] (PGNiG S.A.)

1994 Białogard–Czarne–Wilcze [Debrzno–Złotów-Zabartowo] (PGNiG S.A.)

1976-1992 Processing of seismic surveys carried out in Czarne-Lędyczek and Czarne-Zabartowo in 1976-1992, interpretation and reinterpretation (PGNiG S.A.)

1974–1990 Topic: Overall regional profile, area: [Pomeranian anticlinorium and synclinorium], reinterpretation: 1974–1990 (PGNiG S.A.)

1995 Processing of seismic surveys carried out in the [Wałcz–Gołańcz and Chociwel–Czaplinek] areas, reinterpretation (PGNiG S.A.)

1996 Reinterpretation of reflection seismic surveys on profiles GB-2 and 25 March 1982 (PGNiG S.A.)

1997 Comprehensive geophysical/geological interpretation of reflection seismic surveys on profiles GB-2A, GB-2, GB-2B, 25-III-82 (PGNiG S.A.)

2004 Construction of the lithosphere of the northern part of Poland (area covered by the Polonaise project) based on an integrated analysis of geophysical/geological data, part 1 and 2 (Treasury)

Benchmark wells (MD)

Zabartowo 1 (4 823,5 m)

Zabartowo 2 (4 569,6 m)

Lipka 1 (4 752,0 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 12 months

scope: geophysical surveys — 2D seismic test (excitation line 80 km in length) or 3D seismic test (excitation area 100 km2)

 

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

 

Stage IV duration: 12 months

scope: analysing the data obtained.

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Złotów-Zabartowo’ area during the five-year base period is PLN 231 271,96 (in words: two hundred and thirty-one thousand, two hundred and seventy-one zlotys, ninety-six grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

(1)

the name (business name) and the registered office of the bidder;

(2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

(3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

(4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

(5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

(6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

(7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

(8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

(9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

(10)

the scope of the geological information available to the bidder;

(11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

(12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

(13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

(14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

(15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

(16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

(17)

if a bid is submitted jointly by several entities, it must additionally specify:

(a)

the names (business names) and the registered offices of all the entities submitting the bid;

(b)

the operator;

(c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

(1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

(2)

proof that a deposit has been lodged;

(3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

(4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

(5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

(6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department)

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Złotów — Zabartowo’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Kaczory, Białośliwie, Miasteczko Krajeńskie, Złotów, Lipka and Zakrzewo, the towns and municipalities of: Łobżenica, Wysoka, Wyrzysk and Krajenka, and the town of Złotów in Wielkopolskie Province and the municipality of Sadki and the towns and municipalities of: Mrocza, Sępólno Krajeńskie and Więcbork in Kujawsko-Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (5) having the following coordinates in the PL-1992 coordinate system:

No

X

Y

1

595 210,978

355 930,043

2

620 491,445

375 248,551

3

619 965,853

400 258,032

4

604 743,941

399 937,404

5

581 913,046

381 692,432

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 5 000 provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Złotów — Zabartowo’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

(1)

in Permian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

(2)

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Permian formations.

4.

The surface area of the vertical projection of the area described above is 1 070,01 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of 10 years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

— subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland Monitor Polski. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Złotów — Zabartowo” area’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

(1)

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland

(2)

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights


8.5.2018   

EN

Official Journal of the European Union

C 163/40


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/04)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘ŻARNOWIEC’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland

Tel. +48 223692449, +48 223692447; Fax +4822 3692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Żarnowiec’ area, parts of concession blocks Nos 8, 9, 28, 29 and 48.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

771 897,163

460 194,757

2

759 982,460

460 170,684

3

765 579,520

435 528,730

4

737 770,930

435 133,010

5

737 990,190

421 224,490

6

735 907,849

421 189,091

7

736 256,303

408 926,764

8

768 487,609

409 502,868

to point No 1 along the Baltic Sea coastline

Excluding area 1, the boundaries of which are defined by the following coordinates:

Point No

X [PL-1992]

Y [PL-1992]

9

772 231,869

439 423,094

10

772 033,569

440 000,362

11

770 857,642

440 606,955

12

770 407,936

439 504,452

13

771 004,544

438 913,457

14

771 752,398

439 266,554

Excluding area 2, the boundaries of which are defined by the following coordinates:

Point No

X [PL-1992]

Y [PL-1992]

15

774 424,370

441 529,927

16

774 381,370

442 018,821

17

774 551,655

442 172,850

18

774 539,401

443 143,538

19

774 283,041

443 194,829

20

773 624,839

442 507,104

21

773 019,030

442 639,323

22

773 019,180

442 259,578

23

773 899,015

441 574,908

Excluding area 3, the boundaries of which are defined by the following coordinates:

Point No

X [PL-1992]

Y [PL-1992]

24

772 703,050

443 152,560

25

772 306,980

444 687,690

26

771 183,320

445 342,350

27

770 953,680

445 204,070

28

771 028,960

444 069,600

29

771 317,360

443 120,540

The surface area of the vertical projection of the area covered by this bidding procedure is 1 196,31 km2.

The area covered by the bidding procedure is located in Pomorskie Province in the following

municipalities: Nowa Wieś Lęborska, Cewice, Wicko, Puck, Krokowa, Potęgowo, Główczyce, Gniewino, Choczewo, Łęczyce, Linia,

towns and municipalities: Władysławowo

towns: Łeba, Lębork, Puck.

The aim of the works to be carried out in Cambrian, Ordovician and Silurian formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16.00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

Name of area: Żarnowiec

Location: onshore; concession blocks 8, 9, 28, 29 and 48

Type of deposit

Conventional and unconventional oil and natural gas deposits

Structural levels

Lower Paleozoic (Caledonian),

Upper Paleozoic (Variscan),

Permian-Mesozoic

Petroleum systems

II — unconventional petroleum system associated with the Lower Paleozoic rock complex (Upper and Middle Cambrian, Ordovician, Silurian)

I — conventional petroleum system associated with the Middle Cambrian sandstone complex

Source rocks

I, II — Upper Cambrian, Ordovician and Silurian claystones and mudstones

Reservoir rocks

II — Upper Cambrian, Ordovician and Silurian claystones and mudstones

I — Middle Cambrian sandstones

Seal rocks

I, II — Zechstein evaporitic formations; Upper Cambrian, Ludlow and Pridoli (Silurian) claystones and mudstones (secondary seal cluster)

Thickness of overburden

1 600 -3 300 m

Trap type

II – unconventional traps

I – conventional stratigraphic and tectonic traps

Deposits identified in the vicinity (NG — natural gas; OI — oil)

‘Żarnowiec’ (OI); discovered in 1972; cumulative production: (44 years) 9 721 tonnes condensate; 26 930 000 m3 associated gas; in 2015: production 110 tonnes condensate, 70 000 m3 associated gas; reserves and resources 42 330 tonnes (industrial 1 680  tonnes); 6 960 000 m3 (industrial 1 390 000 m3)

‘Żarnowiec W’ (OI); discovered in 1990; cumulative production: (21 years) 4 200 tonnes condensate; 25 650 000 m3 associated gas; in 2015: production 110 tonnes condensate, 70 000 m3 associated gas; reserves and resources 17 810 tonnes (industrial 3 850  tonnes); 2 350 000 m3 (industrial 1 500 000 m3)

‘Dębki’ (OI); discovered in 1978, cumulative production (44 years) 36 169 tonnes oil, 10 201 000 m3 associated gas; in 2015 production 610 tonnes oil, 220 000 m3 associated gas; reserves and resources 8 620 tonnes (industrial 5 190 tonnes); 3 000 000 m3 (industrial 4 230 000 m3)

‘Białogóra–E’ (OI); discovered in 1991, cumulative production (16 years) 2 917 tonnes oil, 2 418 500 m3 associated gas; production in 2015: none; off-balance reserves and resources 1 430 tonnes (industrial 380 tonnes); off-balance 860 000 m3 (industrial 1 020 000 m3)

Seismic surveys completed (rightholder)

1972 Żarnowiec-Władysławowo-Ustka-Łeba 2D (Treasury)

1976 Bay of Puck area 2D (Treasury)

1987 Deep Seismic Profile GBB10387 (Treasury)

1989 Żarnowiec Nuclear Plant 2D (Treasury)

1992–1994, 2002 Łeba-Żarnowiec 2D Lubiny-Białogóra (Treasury)

2003–2008 Selected profiles from Gdańsk-Kościerzyna 2D survey (Treasury)

2013 Krokowa 3D (Treasury)

2013–2014 Jackowo 2D (Treasury)

2015 Zwartowo 3D (Treasury)

PL1-5600 seismic profile implemented within the framework of the PolandSPAN project (ION)

Benchmark wells (TVD)

Żarnowiec IG 1 (3 276,0 m)

Darżlubie IG 1 (3 520,0 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 36 months

scope: drilling two boreholes to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

 

Stage III duration: 12 months

scope: analysing the data obtained.

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Żarnowiec’ area during the five-year base period is PLN 258 570,44 (in words: two hundred and fifty-eight thousand, five hundred and seventy zlotys, forty-four grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

(1)

the name (business name) and the registered office of the bidder;

(2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

(3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

(4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

(5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

(6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

(7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

(8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

(9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

(10)

the scope of the geological information available to the bidder;

(11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

(12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

(13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

(14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

(15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

(16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

(17)

if a bid is submitted jointly by several entities, it must additionally specify:

(a)

the names (business names) and the registered offices of all the entities submitting the bid;

(b)

the operator;

(c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

(1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

(2)

proof that a deposit has been lodged;

(3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

(4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

(5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

(6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department)

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Żarnowiec’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Nowa Wieś Lęborska, Cewice, Wicko, Puck, Krokowa, Potęgowo, Główczyce, Gniewino, Choczewo, Łęczyce and Linia, the town and municipality of: Władysławowo and the towns of: Łeba, Lębork and Puck in Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (29) having the following coordinates in the PL-1992 coordinate system:

No

X

Y

1

771 897,163

460 194,757

2

759 982,460

460 170,684

3

765 579,520

435 528,730

4

737 770,930

435 133,010

5

737 990,190

421 224,490

6

735 907,849

421 189,091

7

736 256,303

408 926,764

8

768 487,609

409 502,868

to point (1) along the Baltic Sea coastline

excluding area 1, the boundaries of which are defined by the following coordinates:

No

X

Y

9

772 231,869

439 423,094

10

772 033,569

440 000,362

11

770 857,642

440 606,955

12

770 407,936

439 504,452

13

771 004,544

438 913,457

14

771 752,398

439 266,554

excluding area 2, the boundaries of which are defined by the following coordinates:

No

X

Y

15

774 424,370

441 529,927

16

774 381,370

442 018,821

17

774 551,655

442 172,850

18

774 539,401

443 143,538

19

774 283,041

443 194,829

20

773 624,839

442 507,104

21

773 019,030

442 639,323

22

773 019,180

442 259,578

23

773 899,015

441 574,908

excluding area 3, the boundaries of which are defined by the following coordinates:

No

X

Y

24

772 703,050

443 152,560

25

772 306,980

444 687,690

26

771 183,320

445 342,350

27

770 953,680

445 204,070

28

771 028,960

444 069,600

29

771 317,360

443 120,540

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 5 000 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Żarnowiec’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

(1)

in Cambrian, Ordovician and Silurian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

(2)

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Ordovician and Silurian formations.

4.

The surface area of the vertical projection of the area described above is 1 196,31 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of 10 years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland Monitor Polski. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Żarnowiec” area’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

(1)

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland.

(2)

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. Force majeure shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights


8.5.2018   

EN

Official Journal of the European Union

C 163/53


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/05)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘DEBRZNO — CZŁUCHÓW’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland

Tel. +48 223692449, +48 223692447; Fax +48 223692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Debrzno — Człuchów’ area, parts of concession blocks Nos 107 and 127.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

619 965,853

400 258,032

2

620 491,445

375 248,551

3

620 663,710

367 051,575

4

627 943,468

367 256,240

5

655 743,779

368 037,823

6

655 083,200

394 117,900

7

654 932,900

400 994,800

8

650 177,700

400 894,400

The surface area of the vertical projection of the area covered by this bidding procedure is 1 158,97 km2.

The area covered by the bidding procedure is located in the following

municipalities: Człuchów, Przechlewo, Rzeczenica, Chojnice,

towns and municipalities: Czarne, Debrzno, town of Człuchów in Pomorskie Province,

and the municipalities of: Złotów, Lipka, Zakrzewo,

town and municipality of Okonek in Wielkopolskie Province,

and the towns and municipalities of: Kamień Krajeński, Sępólno Krajeńskie, Więcbork in Kujawsko-Pomorskie Province.

The aim of the works to be carried out in Devonian, Carboniferous and Permian formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16.00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

Name of area: Debrzno — Człuchów

Location: onshore; concession blocks 107 and 127

Type of deposit

Conventional and unconventional oil and natural gas deposits

Structural levels

Old Paleozoic (Caledonian),

Upper Paleozoic (Variscan),

Permian-Mesozoic

Petroleum systems

I — Old Paleozoic (Ordovician) and later Paleozoic (Devonian, Carboniferous) rock complex and Permian complex (Rotliegend)

II — Zechstein (Main Dolomite)

Source rocks

I — Ordovician claystones and mudstones, Upper Devonian marl, Lower Carboniferous claystones and mudstones

II — Main Dolomite formations

Reservoir rocks

I — Devonian sandstones and carbonates, sandstones and Carboniferous secondary limestones, Permian sandstones

II — Permian Main Dolomite

Seal rocks

I, II — Zechstein evaporitic formations;

I — argilaceous rocks and mudstones in clusters between potential reservoir Devonian and Carboniferous formations

Thickness of overburden

> 2 000 m

Trap type

I — Devonian and Carboniferous — stratigraphic and tectonic; Rotliegend — structural, tectonic, lithological

II — lithological-facial, structural

Deposits identified in the vicinity (NG — natural gas; OI — oil)

Białogard (NG), discovered in 1982; cumulative production: gas 595 660 000 m3 (32 years); in 2015: production — gas 14 130 000 m3; reserves and resources — gas 59 430 000 m3 (reserves and resources currently being re-estimated);

Wierzchowo (GZ), discovered in 1971, cumulative production 514 020 000 m3 (42 years); in 2015: production — none, reserves and resources: gas 10 780 000 m3, industrial resources 10 690 000 m3.

Seismic surveys completed [area] (rightholder)

1986 Szczecinek — Złotów [Bielica], (Treasury)

1985 Szczecinek — Chojnice [Szczecinek], (Treasury)

1986-1987 Szczecinek — Chojnice [Człuchów — Debrzno], (Treasury)

1988-1989 Białogard — Czarne – Wilcze [Okonek - Lędyczek], (PGNiG S.A.)

1993 Szczecinek-Złotów [Rzeczenica-Biały Bór], (PGNiG S.A.)

1991 Białogard — Czarne — Wilcze in 1989 [Chojnice-Kamień Krajeński], (PGNiG S.A.)

1992 Białogard-Czarne-Wilcze

1986-1987 Szczecinek — Chojnice [Człuchów — Debrzno], (Treasury)

1987-1989 Szczecinek — Złotów [Szczecinek — Czarne — Debrzno], (Treasury)

1989 Białogard — Czarne — Wilcze [Chojnice-Kamień Krajeński], (Treasury)

1992 Białogard — Czarne-Wilcze [Tuchola-Wilcze, Sępólno Krajeńskie-Wilcze], (PGNiG S.A.)

1994 Białogard — Czarne-Wilcze [Człuchów-Debrzno-Zabartowo], (PGNiG S.A.)

1994 Processing of seismic surveys carried out in Czarne-Lędyczek and Czarne-Zabartowo in 1976-1992, interpretation and re-interpretation (PGNiG S.A.)

Benchmark wells (MD)

Człuchów-1 (1 953 m)

Debrzno IG-1 (5 010 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 12 months

scope: geophysical surveys — 2D seismic test (excitation line 80 km in length) or 3D seismic test (excitation area 100 km2)

 

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 5 200 m, with mandatory coring of prospective intervals

 

Stage IV duration: 12 months

scope: analysing the data obtained.

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Debrzno — Człuchów’ area during the five-year base period is PLN 250 499,78 (in words: two hundred and fifty thousand, four hundred and ninety-nine zlotys, seventy-eight grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

(1)

the name (business name) and the registered office of the bidder;

(2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

(3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

(4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

(5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

(6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

(7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

(8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

(9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

(10)

the scope of the geological information available to the bidder;

(11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

(12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

(13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

(14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

(15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

(16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

(17)

if a bid is submitted jointly by several entities, it must additionally specify:

(a)

the names (business names) and the registered offices of all the entities submitting the bid;

(b)

the operator;

(c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

(1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

(2)

proof that a deposit has been lodged;

(3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

(4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

(5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

(6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department)

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Debrzno — Człuchów’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Człuchów, Przechlewo, Rzeczenica and Chojnice, the towns and municipalities of: Czarne and Debrzno, and the town of Człuchów in Pomorskie Province, the municipalities of: Złotów, Lipka and Zakrzewo and the town and municipality of Okonek in Wielkopolskie Province and the towns and municipalities of: Kamień Krajeński, Sępólno Krajeńskie and Więcbork in Kujawsko-Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (8) having the following coordinates in the PL-1992 coordinate system:

No

X

Y

1

619 965,853

400 258,032

2

620 491,445

375 248,551

3

620 663,710

367 051,575

4

627 943,468

367 256,240

5

655 743,779

368 037,823

6

655 083,200

394 117,900

7

654 932,900

400 994,800

8

650 177,700

400 894,400

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 5 200 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Debrzno — Człuchów’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

(1)

in Devonian, Carboniferous and Permian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

(2)

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Devonian, Carboniferous and Permian formations.

4.

The surface area of the vertical projection of the area described above is 1 158,97 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of 10 years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

— subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland Monitor Polski. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Debrzno — Człuchów’ area’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

(1)

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland

(2)

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. Force majeure shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights


8.5.2018   

EN

Official Journal of the European Union

C 163/64


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/06)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘DAMNICA’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland.

Tel. +48 223692449, +48 223692447; Fax +48 223692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Damnica’ area, parts of concession blocks Nos 7, 8, 27, 28, 47 and 48.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

768 487,609

409 502,868

2

736 256,303

408 926,764

3

737 349,025

370 473,148

4

754 461,086

370 959,415

to point No 1 along the Baltic Sea coastline

The surface area of the vertical projection of the area covered by this bidding procedure is 1 039,29 km2.

The area covered by the bidding procedure is located in Pomorskie Province in the following:

municipalities: Ustka, Smołdzino, Główczyce, Damnica, Potęgowo, Słupsk, Nowa Wieś Lęborska, Wicko,

towns: Łeba, Słupsk.

The aim of the works to be carried out in Cambrian, Ordovician and Silurian formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16.00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

Name of area: Damnica

Location: onshore; concession blocks 7, 8, 27, 28, 47 and 48

Type of deposit

Conventional and unconventional oil and natural gas deposits

Structural levels

Lower Paleozoic (Caledonian),

Upper Paleozoic (Variscan),

Permian-Mesozoic

Petroleum systems

II — unconventional petroleum system associated with the Lower Paleozoic rock complex (Upper and Middle Cambrian, Ordovician, Silurian)

I — conventional petroleum system associated with the Middle Cambrian sandstone complex

Source rocks

I, II — Lower Cambrian, Ordovician and Silurian claystones and mudstones

Reservoir rocks

II — Lower Cambrian, Ordovician and Silurian claystones and mudstones

I — Middle Cambrian sandstones

Seal rocks

I, II — Zechstein evaporitic formations; Lower Cambrian, Ludlow and Pridoli (Silurian) (secondary seal cluster)

Thickness of overburden

approx. 3 000 m

Trap type

II — unconventional traps

I — conventional stratigraphic and tectonic traps

Deposits identified in the vicinity (NG — natural gas; OI — oil)

‘Żarnowiec’ (OI); discovered in 1972; cumulative production: (44 years) 9 721 tonnes condensate; 26 930 000 m3 associated gas; in 2015: production 110 tonnes condensate, 70 000 m3 associated gas; reserves and resources 42 330 tonnes (industrial 1 680  tonnes); 6 960 000 m3 (industrial 1 390 000 m3)

‘Żarnowiec W’ (OI); discovered in 1990; cumulative production: (21 years) 4 200 tonnes condensate; 25 650 000 m3 associated gas; in 2015: production 110 tonnes condensate, 70 000 m3 associated gas; reserves and resources 17 810 tonnes (industrial 3 850  tonnes); 2 350 000 m3 (industrial 1 500 000 m3)

‘Dębki’ (OI); discovered in 1978, cumulative production (44 years) 36 169 tonnes oil, 10 201 000 m3 associated gas; in 2015 production 610 tonnes oil, 220 000 m3 associated gas; reserves and resources 8 620 tonnes (industrial 5 190 tonnes); 3 000 000 m3 (industrial 4 230 000 m3)

‘Białogóra–E’ (OI); discovered in 1991, cumulative production (16 years) 2 917 tonnes oil, 2 418 500 m3 associated gas; production in 2015: none; off-balance reserves and resources 1 430 tonnes (industrial 380 tonnes); off-balance 860 000 m3 (industrial 1 020 000 m3)

Seismic surveys completed (rightholder)

1959 Ustka — Kołobrzeg (Treasury)

1960 Ustka — Łeba (Treasury)

1968 Darłowo-Słupsk-Łeba (Treasury)

1971 Darłowo — Wejherowo (Treasury)

1972 Ustka — Łeba, Żarnowiec — Władysławowo (Treasury)

1987 Kostrzyn — Lębork (Treasury)

2011 Damnica 3D (Treasury)

2012 PL1-5600 Implemented within the framework of the PolandSPAN project

Benchmark wells (TVD)

Lębork IG 1 (3 310,0 m)

Łeba 8 (3 340,0 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 12 months

scope: geophysical surveys — 2D seismic test (excitation line 80 km in length) or 3D seismic test (excitation area 100 km2)

 

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

 

Stage IV duration: 12 months

scope: analysing the data obtained.

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Damnica’ area during the five-year base period is PLN 224 632,14 (in words: two hundred and twenty-four thousand, six hundred and thirty-two zlotys, fourteen grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

(1)

the name (business name) and the registered office of the bidder;

(2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

(3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

(4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

(5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

(6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

(7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

(8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

(9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

(10)

the scope of the geological information available to the bidder;

(11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

(12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

(13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

(14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

(15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

(16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

(17)

if a bid is submitted jointly by several entities, it must additionally specify:

(a)

the names (business names) and the registered offices of all the entities submitting the bid;

(b)

the operator;

(c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

(1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

(2)

proof that a deposit has been lodged;

(3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

(4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

(5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

(6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department)

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Damnica’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Ustka, Smołdzino, Główczyce, Damnica, Potęgowo, Słupsk, Nowa Wieś Lęborska and Wicko, and the towns of: Łeba and Słupsk in Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (4) having the following coordinates in the PL-1992 coordinate system:

No

X

Y

1

768 487,609

409 502,868

2

736 256,303

408 926,764

3

737 349,025

370 473,148

4

754 461,086

370 959,415

to point (1) along the Baltic Sea coastline

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 5 000 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Damnica’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

(1)

in Cambrian, Ordovician and Silurian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

(2)

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Ordovician and Silurian formations.

4.

The surface area of the vertical projection of the area described above is 1 039,29 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of 10 years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

— subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland ‘Monitor Polski’. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Damnica” area’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

(1)

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland.

(2)

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights


8.5.2018   

EN

Official Journal of the European Union

C 163/75


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/07)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘SZAMOTUŁY — POZNAŃ PÓŁNOC’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland

Tel. +48 22 3692449, +48 22 3692447; Fax +48 22 3692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Szamotuły — Poznań Północ’ area, parts of concession blocks Nos 166, 186 and 206.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

554 275,834

350 362,873

2

540 476,386

353 736,920

3

532 656,265

364 597,079

4

516 752,540

364 155,530

5

507 487,326

363 899,151

6

508 036,814

346 455,309

7

514 844,000

348 080,260

8

525 964,310

330 432,620

9

554 868,380

331 517,039

The surface area of the vertical projection of the area covered by this bidding procedure is 1 138,34 km2.

The area covered by the bidding procedure is located in Wielkopolskie Province in the following:

municipalities: Czarnków, Lubasz, Połajewo, Ryczywół, Dopiewo, Czerwonak, Tarnowo Podgórne, Rokietnica, Suchy Las, Obrzycko, Kaźmierz,

towns and municipalities: Rogoźno, Oborniki, Murowana Goślina, Szamotuły, Ostroróg,

towns: Poznań, Obrzycko.

The aim of the works to be carried out in Carboniferous and Permian formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16:00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

name of area: Szamotuły — Poznań Północ

location: onshore; concession blocks 166, 186 and 206

Type of deposit

conventional and unconventional for natural gas

Structural levels

I — Permian-Mesozoic

II — Upper Paleozoic (Variscan)

Petroleum systems

I – conventional petroleum system associated with the later Paleozoic (Carboniferous) rock complex and with the Permian complex (Rotliegend, Zechstein – Zechstein limestones and Main Dolomite)

II – unconventional petroleum system (tight gas) associated with Rotliegend and Carboniferous sandstones

Source rocks

I – Lower Carboniferous claystones and mudstones, Main Dolomite formations

II – Lower Carboniferous claystones and mudstones

Reservoir rocks

I – Rotliegend sandstones and limestones and Permian Dolomites

II – Carboniferous and Permian sandstones

Seal rocks

I, II – Zechstein evaporitic formations; salt levels or argilaceous formations within Rotliegend formations; beach deposits in Rotliegend roof sections

Thickness of overburden

I > 2 750 m

II > 3 600 m

Trap type

I – Rotliegend (Zechstein limestones) - structural, tectonic, lithological

Main Dolomite — lithological-facial, structural

II – tight gas – BCSG (Basin Center Gas System)

Deposits identified in the vicinity (NG — natural gas; OI — oil)

Młodasko (NG), discovered in 1985; cumulative production: A+B – 451 900 000 m3 (24 years); in 2015: production - 27 280 000 m3; reserves and resources A+B (balance sheet) 44 100 000 m3; industrial resources A+B 43 860 000 m3

Ceradz Dolny (NG), discovered in 1978, cumulative production C – in 1988-1996 – 33 720 000 m3; reserves and resources C (balance sheet) 85 270 000 m3; industrial resources — none

Jankowice (NG), discovered in 1985, cumulative production C – in 1988-2013 – 95 510 000 m3; reserves and resources — none; geological reserves and resources C 115 480 000 m3

Seismic surveys completed [area] (rightholder)

1974 PAN Programme of Deep Seismic Surveys (Treasury)

1976 Międzychód 93 – Buk [Sędziny – Buk] (Treasury)

1976 Monoklina Przedsudecka (Treasury)

1976-1977 Czarnków – Poznań – Strzelno (Treasury)

1977 Czarnków – Poznań – Strzelno [Kobylnica] (Treasury)

1977-1978 Czarnków – Poznań – Strzelno [Chrzypsko] (Treasury)

1978 Czarnków – Poznań – Strzelno [Obrzycko – Kobylnica] (Treasury)

1977-1979 Poznań – Pniewy [Nowy Tomyśl Stęszew] (Treasury)

1977-1982 Poznań – Pniewy [Obrzycko-Poznań] (Treasury)

1979-1980 Poznań – Pniewy [Bytyń – Borowo – Brodnica] (Treasury)

1980-1981 Radęcin – Wieleń – Murowana Goślina (Treasury)

1981-1983 Poznań – Września [Kobylnica – Września] (Treasury)

1982-1983 Wałcz – Gołańcz (Treasury)

1985-1986 Warta Nuclear Plant (Treasury)

1995-1998 Pniewy – Stęszew [Pniewy – Stęszew] (PGNiG S.A.)

1998 Pniewy – Stęszew [Opalenica] (PGNiG S.A.)

1999 Pniewy – Stęszew [Tarnowo Podgórne] (PGNiG S.A.)

2004 Pniewy – Stęszew [Młodasko – Witkowice – Wilczyna] (Treasury)

2007 Obrzycko – Szamotuły (Treasury)

Benchmark wells (MD)

Objezierze IG-1 (5 094,50 m)

Golęczewo 1 (4 470,00 m)

Obrzycko 1 (4 381,70 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 36 months

scope: drilling two boreholes to a maximum depth of 6 000 m, with mandatory coring of prospective intervals

 

Stage III duration: 12 months

scope: analysing the data obtained

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Szamotuły – Poznań Północ’ area during the five-year base period is PLN 246 040,81 (in words: two hundred and forty-six thousand, forty zlotys, eighty-one grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

1)

the name (business name) and the registered office of the bidder;

2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

10)

the scope of the geological information available to the bidder;

11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

17)

if a bid is submitted jointly by several entities, it must additionally specify:

a)

the names (business names) and the registered offices of all the entities submitting the bid;

b)

the operator;

c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

2)

proof that a deposit has been lodged;

3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologiscznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from:

Departament Geologii i Koncesji Geologicznych [Geology and Geological Concessions Department]

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Szamotuły – Poznań Północ’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Czarnków, Lubasz, Połajewo, Ryczywół, Dopiewo, Czerwonak, Tarnowo Podgórne, Rokietnica, Suchy Las, Obrzycko and Kaźmierz; the towns and municipalities of: Rogoźno, Oborniki, Murowana Goślina, Szamotuły and Ostroróg; and the towns of: Poznań and Obrzycko in Wielkopolskie Province, the boundaries of which are defined by lines joining points (1) to (9) having the following coordinates in the PL-1992 coordinate system:

No

X

Y

1

554 275,834

350 362,873

2

540 476,386

353 736,920

3

532 656,265

364 597,079

4

516 752,540

364 155,530

5

507 487,326

363 899,151

6

508 036,814

346 455,309

7

514 844,000

348 080,260

8

525 964,310

330 432,620

9

554 868,380

331 517,039

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 6 000 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Szamotuły – Poznań Północ’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

1.

in Carboniferous and Permian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

2.

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Carboniferous and Permian formations.

4.

The surface area of the vertical projection of the area described above is 1 138,34 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of 10 years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

– subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland ‘Monitor Polski’. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Szamotuły – Poznań Północ’ area’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

1.

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland;

2.

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights


8.5.2018   

EN

Official Journal of the European Union

C 163/86


Notice from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2018/C 163/08)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF OIL AND NATURAL GAS DEPOSITS AND THE EXTRACTION OF OIL AND NATURAL GAS IN THE ‘KOSZALIN — POLANÓW’ AREA

SECTION I: LEGAL BASIS

1.

Article 49h(2) of the Geological and Mining Act (Dziennik Ustaw (Journal of Laws) 2017, item 2126)

2.

Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171)

3.

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons (OJ L 164, 30.6.1994, p. 3; Special edition in Polish: Chapter 6, Volume 2, p. 262)

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

Postal address: ul. Wawelska 52/54, 00-922 Warsaw, Poland

Tel. +48 223692449, +48 223692447; Fax +48 22 3692460

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

(1)   Type of activities for which the concession is to be granted

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Koszalin — Polanów’ area, parts of concession blocks Nos 44, 45, 64, 65, 66, 85 and 86.

(2)   Area within which the activities are to be conducted

The boundaries of the area covered by this bidding procedure are defined by lines joining points with the following coordinates in the PL-1992 coordinate system:

Point No

X [PL-1992]

Y [PL-1992]

1

715 670,703

310 109,449

2

700 643,559

334 294,553

3

693 802,912

355 613,415

4

683 626,151

367 870,254

5

683 970,000

355 934,000

6

679 751,100

355 587,900

7

674 341,904

364 585,499

8

675 685,502

326 742,492

9

687 105,186

314 298,735

10

703 434,000

314 956,000

11

703 794,000

310 744,000

12

708 568,000

304 275,000

13

714 115,842

304 001,240

to point No 1 along the Baltic Sea coastline

The surface area of the vertical projection of the area covered by this bidding procedure is 1 198,69 km2.

The area covered by the bidding procedure is located in the following:

municipalities: Białogard, Biesiekierz, Będzino, Świeszyno, Manowo, Grzmiąca,

towns and municipalities: Tychowo, Bobolice, Mielno, Sianów, Polanów, Biały Bór,

towns: Koszalin in Zachodniopormorskie Province

and in the towns and municipalities of Miastko and Kępice in Pomorskie Province.

The aim of the works to be carried out in Devonian, Carboniferous and Permian formations is to document and extract oil and natural gas in the area described above.

(3)   Time limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 16:00 CET/CEST on the last day of the 91-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

(4)   Detailed bid specifications, including the bid evaluation criteria and a specification of their weighting, ensuring that the conditions referred to in Article 49k of the Geological and Mining Act of 9 June 2011 are fulfilled

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(2) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

Bids received will be evaluated by the bid evaluation committee on the basis of the following criteria:

30 %

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

25 %

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential;

20 %

scope and schedule of the geological works, including geological operations, or mining operations proposed;

10 %

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

10 %

the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project;

5 %

scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores.

If, following the evaluation of bids on the basis of the criteria specified above, two or more bids obtain the same score, the amount of the fee for the establishment of mining usufruct rights due during the prospection and exploration phase will be used as an additional criterion allowing a final choice to be made between the bids concerned.

(5)   Minimum scope of geological information

Concession data

name of area: Koszalin — Polanów

location: onshore; concession blocks 44, 45, 64, 65, 66, 85 and 86

Type of deposit

conventional oil and natural gas deposits

Structural levels

Old Paleozoic (Caledonian),

Upper Paleozoic (Variscan),

Permian-Mesozoic.

Petroleum systems

I — petroleum system associated with the Old Paleozoic (Ordovician) and later Paleozoic (Devonian, Carboniferous) rock complex and with the Permian complex (Rotliegend),

II — Zechstein (Main Dolomite).

Source rocks

I — Ordovician claystones and mudstones, Upper Devonian marl, Lower Carboniferous claystones and mudstones,

II — Main Dolomite formations.

Reservoir rocks

I — Devonian sandstones and carbonates, sandstones and Carboniferous secondary limestones, Permian sandstones,

II — Permian Dolomites.

Seal rocks

I — Zechstein evaporitic formations; argilaceous rocks and mudstone in clusters between potential reservoir Devonian and Carboniferous formations and Lower Paleozoic claystones and mudstones in dislocation areas,

II — Zechstein evaporitic formations.

Thickness of overburden

1 600 -3 300 m

Trap type

I — Devonian and Carboniferous — stratigraphic and tectonic

Rotliegend — structural, tectonic, lithological

II — Main Dolomite — lithological-facial, structural

Deposits identified in the vicinity (NG — natural gas; OI — oil)

Daszewo N gas (NG), discovered in 1984; cumulative production: gas 415 990 000 m3 (26 years); in 2015: production – 25 250 000 m3; reserves and resources 999 470 000 m3; industrial resources 225 740 000 m3;

Daszewo N oil (OI), discovered in 1988; cumulative production: oil 57 893 tonnes, associated gas 10 330 000 m3 (17 years); in 2015: production — none; reserves and resources — oil 60 000 tonnes, associated gas 15 million m3.

Daszewo (OI), discovered in 1980; cumulative production: oil 180 610 tonnes (21 years), gas 97 750 000 m3 (24 years); in 2015 (PMG Daszewo): production — oil 270 tonnes; gas — none, reserves and resources — oil 5 020 tonnes, gas 27 720 000 m3 (cushion gas);

Białogard (NG), discovered in 1982; cumulative production: gas 595 660 000 m3 (32 years); in 2015: production — gas 14 130 000 m3; reserves and resources — gas 59 430 000 m3 (reserves and resources currently being re-estimated);

Tychowo (OI), discovered in 1988; cumulative production: oil 20 742 tonnes, gas 5 972 000 m3 (8 years); in 2015: production — none; reserves and resources — oil 19 000 tonnes, gas 5 860 000 m3. Autonomous operation has ceased; the outlet was closed following a negative absorbency test carried out before the pump was started up.

Wierzchowo (GZ), discovered in 1971, cumulative production 514 020 000 m3 (42 years); in 2015: production — none, reserves and resources: gas 10 780 000 m3, industrial resources 10 690 000 m3.

Seismic surveys completed [area] (rightholder)

1973 Koszalin-Bydgoszcz (Treasury)

1974 Regional Profiles [Polanów] (Treasury)

1974 Regional Profiles [Wierzchowo-Gózd] (Treasury)

1975 Resko-Czaplinek (Treasury)

1975-1977 Bialogard-Czluchów [Wierzchowo] (Treasury)

1976-1978 Szczecinek-Chojnice [Szczecinek-Czluchów] (Treasury)

1977-1979 Wysoka Kamieńska-Bialogard [Karlino] (Treasury)

1983-1986 Wysoka Kamieńska-Bialogard [Ustronie-Biesiekierz-Rosnowo] (Treasury)

1984 Wysoka Kamieńska-Bialogard [Dygowo-Białogard-Tychowo] (Treasury)

1985-1986 Koszalin-Polanów-Miastko [Grzybnica] (Treasury)

1987 Koszalin-Polanów-Miastko [Gozd] (Treasury)

1988-1989 Deep Seismic Surveys [Drawsko] (Treasury)

1989 Deep Seismic Surveys [Szczecinek-Miastko] (Treasury)

1990 Tychowo-Czechy [Tychowo-Czechy] (PGNiG S.A.)

1991-1992 Kłanino-Karsina-Żydowo (PGNiG S.A.)

1992 Tychowo-Czechy [Tychowo] (PGNiG S.A.)

1992 PAN Programme of Deep Seismic Surveys (Treasury)

1993 Świdwin-Białogard [Rąbino-Daszewo] (PGNiG S.A.)

1994 Dobrzyca-Parnowo [Dobrzyca] (PGNiG S.A.)

1995 Drzonowo-Wierzchowo (PGNiG S.A.)

1998 Rosnowo-Białogard, (reprocessing) (PGNiG S.A.)

2000 Pomerania [Biały Bór] (Apache Poland Sp. z o.o.)

2011 Dargin 2D (Treasury)

Benchmark wells (MD)

Jamno IG 1 (2 801,5 m)

Kłanino 1 (3 306,0 m)

Kurowo 1 (3 089,7 m)

(6)   Commencement date of activities

The activities covered by the concession will commence within 14 days from the date on which the decision granting the concession becomes final.

(7)   Conditions for granting the concession, in particular concerning the amount, scope and manner of providing the security referred to in Article 49x(1) of the Geological and Mining Act and, where justified, the amount, scope and manner of providing the security referred to in Article 49x(2) of that Act

The successful bidder is required to provide a security covering non-compliance or inadequate compliance with the conditions laid down in the concession and for financing the closure of mine workings if the concession expires, is withdrawn or becomes invalid. This security is to be provided for the period from the date on which the concession is granted until the end of the prospection and exploration phase. The amount of the security is PLN 100 000. The form and date of its payment are governed by Article 49x(4) and (5) of the Geological and Mining Act.

(8)   Minimum scope of geological works, including geological operations, or mining operations

The minimum programme of geological works proposed for the prospection and exploration phase comprises:

 

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

 

Stage II duration: 12 months

scope: geophysical surveys - 2D seismic test (excitation line 80 km in length) or 3D seismic test (excitation area 100 km2)

 

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 3 500 m, with mandatory coring of prospective intervals

 

Stage IV duration: 12 months

scope: analysing the data obtained

(9)   Period for which the concession is to be granted

The concession period is 10 years, including:

a prospection and exploration phase of five years' duration, starting from the date on which the concession is granted,

an extraction phase of five years' duration, starting from the date on which an investment decision is obtained.

(10)   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

Implementation of the concession work programme must not infringe landowners' rights and does not eliminate the need to comply with other requirements laid down in legislation, in particular the Geological and Mining Act, and requirements regarding spatial planning, environmental protection, agricultural land and forests, nature, waters and waste.

(11)   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

(12)   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Koszalin — Polanów’ area during the five-year base period is PLN 259 084,86 (in words: two hundred and fifty-nine thousand, eighty-four zlotys, eighty-six grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Monitor Polski (Official Gazette) (Article 49h(3)(12) of the Geological and Mining Act).

(13)   Information concerning requirements to be met by bids and documents required from bidders

1.

Bids should specify:

1)

the name (business name) and the registered office of the bidder;

2)

the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established;

3)

the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities;

4)

the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used;

5)

a schedule, broken down into years, for geological works, including geological operations, and the scope of such works;

6)

the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Act;

7)

rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying;

8)

a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required;

9)

the way in which the adverse environmental impacts of the intended activities are to be counteracted;

10)

the scope of the geological information available to the bidder;

11)

experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection;

12)

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential;

13)

financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing;

14)

the proposed technology for conducting geological works, including geological operations, or mining operations;

15)

the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure;

16)

the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Act;

17)

if a bid is submitted jointly by several entities, it must additionally specify:

a)

the names (business names) and the registered offices of all the entities submitting the bid;

b)

the operator;

c)

the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement.

2.

Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure.

3.

The following documents are to be enclosed with bids:

1)

evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers;

2)

proof that a deposit has been lodged;

3)

a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Act;

4)

graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country's administrative boundaries;

5)

written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities' technical resources are used when implementing the concession;

6)

two copies of the geological operations project file.

4.

Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto.

5.

Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority.

6.

Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator.

7.

Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure.

8.

Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened.

(14)   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the time limit for the submission of bids.

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

A bid evaluation committee is appointed by the concession authority for the purpose of conducting the bidding procedure and selecting the most advantageous bid. The composition and rules of procedure of the committee are specified in the Cabinet Regulation of 28 July 2015 on bidding procedures for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and for concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171). The bid evaluation committee submits a report on the bidding procedure to the concession authority for approval. Together with bids and all documents related to the bidding procedure, the report is open to other entities submitting bids.

IV.2)   Additional explanations

Within seven days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within seven days from the receipt of the request, the concession authority will publish the explanations in the Biuletyn Informacji Publicznej (Public Information Bulletin), on the page of the administrative office subordinate to that authority.

IV.3)   Additional information

Full information about the area covered by the bidding procedure has been compiled by the Polish Geological Service in the Pakiet danych geologicznych (Geological Data Pack), which is available on the Ministry of the Environment website (www.mos.gov.pl) and from

Departament Geologii i Koncesji Geologicznych [Geology and Geological Concessions Department]

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. +48 223692449

Fax +48 223692460


ANNEX

AGREEMENT

establishing mining usufruct rights for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Koszalin - Polanów’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on … between:

the State Treasury, represented by the Minister for the Environment, for and on behalf of whom Mr Mariusz Orion Jędrysek, State Secretary at the Ministry of the Environment and Chief Geologist of Poland, acts under power of attorney No 69 of 12 June 2017, hereinafter referred to as ‘the Treasury’,

and

XXX having its registered office at: … (full address), registered … under KRS (National Court Register) No …, share capital …, represented by …, hereinafter referred to as ‘the Holder of Mining Usufruct Rights’,

hereinafter each referred to singly as ‘a Party’ or jointly as ‘the Parties’,

worded as follows:

Section 1

1.

The Treasury, as exclusive owner of the substrata of the Earth's crust covering the area within the municipalities of: Białogard, Biesiekierz, Będzino, Świeszyno, Manowo and Grzmiąca; the towns and municipalities of: Tychowo, Bobolice, Mielno, Sianów, Polanów and Biały Bór; and the town of: Koszalin in Zachodniopomorskie Province, and the towns and municipalities of: Miastko and Kępice in Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (13) having the following coordinates in the PL-1992 coordinate system:

No

X

Y

1

715 670,703

310 109,449

2

700 643,559

334 294,553

3

693 802,912

355 613,415

4

683 626,151

367 870,254

5

683 970,000

355 934,000

6

679 751,100

355 587,900

7

674 341,904

364 585,499

8

675 685,502

326 742,492

9

687 105,186

314 298,735

10

703 434,000

314 956,000

11

703 794,000

310 744,000

12

708 568,000

304 275,000

13

714 115,842

304 001,240

to point (1) along the Baltic Sea coastline

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 3 500 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Koszalin - Polanów’ area within one year from the date of the Agreement being concluded.

2.

If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire.

3.

Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:

1)

in Devonian, Carboniferous and Permian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits;

2)

in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Devonian, Carboniferous and Permian formations.

4.

The surface area of the vertical projection of the area described above is 1 198,69 km2.

5.

The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Dziennik Ustaw (Journal of Laws) 2017, item 2126), and decisions issued pursuant thereto.

Section 2

The Holder of Mining Usufruct Rights declares that it raises no objections to the factual and legal status of the subject of the mining usufruct rights.

Section 3

1.

The Agreement shall take effect on the date on which the concession is obtained.

2.

The mining usufruct rights shall be established for a period of ten years, including five years for the prospection and exploration phase and five years for the extraction phase, subject to Sections 8(2) and 10.

3.

The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason.

Section 4

The Holder of Mining Usufruct Rights undertakes to notify the Treasury in writing of any changes resulting in a change of name, registered office and address or organisational form, changes in registration and identification numbers, the transfer of the concession to another entity by operation of law, the filing of a bankruptcy petition, the declaration of bankruptcy or the initiation of restructuring proceedings. The Treasury may require that the necessary explanations be provided in such cases. Notification shall take place within 30 days from the date on which the circumstances referred to above occur.

Section 5

The Agreement shall be without prejudice to the rights of third parties, in particular owners of land, and the Holder of Mining Usufruct Rights shall not be exempt from the need to comply with the requirements provided for by law, in particular those relating to the prospection and exploration of minerals and the protection and use of environmental resources.

Section 6

The Treasury reserves the right to establish within the area referred to in Section 1(1) mining usufruct rights for the purpose of carrying out activities other than those specified in the Agreement, in a manner which does not infringe the rights of the Holder of Mining Usufruct Rights.

Section 7

1.

The Holder of Mining Usufruct Rights shall pay the Treasury the following fee for the mining usufruct rights in the area specified in Section 1(1) for each year of the prospection and exploration phase of mining usufruct (counted as 12 consecutive months):

(a)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(b)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(c)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(d)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct;

(e)

PLN … (amount) (in words: … zlotys) for the … (specify in words the ordinal number) year of usufruct, counting from the date on which the Agreement took effect, within 30 days from the beginning of that year of mining usufruct,

— subject to the provisions of paragraph 2.

2.

If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account.

3.

The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Official Gazette of the Republic of Poland ‘Monitor Polski’. If this index for a given year is less than or equal to zero, there shall be no indexation for that year.

4.

If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed.

5.

If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect.

6.

If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits.

7.

The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Koszalin - Polanów’ area’.

The date of payment shall be the date on which the Treasury's account is credited.

8.

The fee specified in paragraph 1 shall not be subject to VAT. If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due.

9.

The Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes to the account number referred to in paragraph 7.

10.

The fee for the establishment of mining usufruct rights shall be payable to the Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights.

11.

The Holder of Mining Usufruct Rights shall send the Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights.

Section 8

1.

After the Holder of Mining Usufruct Rights obtains an investment decision specifying the conditions for the extraction of oil or natural gas, the Parties shall, within 30 days from the date of that decision, sign an addendum to the Agreement specifying the conditions for the implementation of the Agreement during the extraction phase and the amount of the fee for mining usufruct rights in the area specified in Section 1(1) for each year of mining usufruct during the extraction phrase.

2.

If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.

Section 9

The Holder of Mining Usufruct Rights may exercise the mining usufruct rights established in Section 1(1) only after obtaining written consent from the Treasury.

Section 10

1.

If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure.

2.

If the Agreement is terminated for the reasons specified in paragraphs 1 or 4, the Holder of Mining Usufruct Rights shall pay the Treasury a contractual penalty of 25 % of the fee for the entire prospection and exploration phase of mining usufruct, as specified in Section 3(1) and (2), indexed in accordance with Section 7(3).

3.

If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect.

4.

If the Holder of Mining Usufruct Rights fails to inform the Treasury of the events referred to in Section 4 within 30 days of their occurrence, the Treasury may impose on the Holder of Mining Usufruct Rights a contractual penalty of 5 % of the fee for the entire prospection and exploration phase of mining usufruct for each instance of failure to provide information, or terminate the Agreement in whole or in part, subject to 30 days' notice effective at the end of the calendar month.

5.

The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement.

6.

The Agreement shall be terminated in writing, failing which the termination shall not be valid.

7.

The Parties agree that if the Treasury terminates the Agreement, the fee paid for the mining usufruct rights referred to in Section 7(1) shall not be reimbursed.

8.

The Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties.

Section 11

1.

The Parties have provided the following contact details for any correspondence:

1)

Treasury:

Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, Poland;

2)

Holder of Mining Usufruct Rights:

(address).

2.

The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party's most recently provided contact details shall be deemed to have been effectively served on the other Party.

3.

Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party.

4.

Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt.

Section 12

1.

The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it.

2.

In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action.

Section 13

The Holder of Mining Usufruct Rights may apply for extension of the Agreement, in whole or in part, and must do so in writing, failing which the application will be invalid.

Section 14

If the Agreement is terminated, the Holder of Mining Usufruct Rights shall not be entitled to make any claims against the Treasury for an increase in the value of the subject of the mining usufruct rights.

Section 15

Any disputes arising out of the Agreement shall be resolved by the ordinary court having geographical jurisdiction over the seat of the Treasury.

Section 16

This Agreement shall be governed by Polish law, in particular the provisions of the Geological and Mining Act and of the Civil Code.

Section 17

The Holder of Mining Usufruct Rights shall bear the costs of concluding the Agreement.

Section 18

Amendments to the Agreement shall be made in writing, failing which they shall not be valid.

Section 19

The Agreement has been drawn up in three identical copies (one copy for the Holder of Mining Usufruct Rights and two copies for the Minister for the Environment).

Treasury

Holder of Mining Usufruct Rights