Mineral Law Perspective | Conditions and Basis for the Continuation of Prospecting Rights
Published:
2024-08-16
According to the current law, the period of new establishment, renewal and retention of prospecting rights is 5 years. If the prospecting right owner has not completed the exploration work within 5 years and still needs to continue the exploration work, he shall apply for the continuation of the prospecting right in time to prevent the loss of the prospecting right and the loss of the initial investment. In order to ensure the effective continuation of prospecting rights, prospecting rights owners should pay attention to the following seven aspects:
According to the current law, the period of new establishment, renewal and retention of prospecting rights is 5 years. If the prospecting right owner has not completed the exploration work within 5 years and still needs to continue the exploration work, he shall apply for the continuation of the prospecting right in time to prevent the loss of the prospecting right and the loss of the initial investment. In order to ensure the effective continuation of prospecting rights, prospecting rights owners should pay attention to the following seven aspects:
1. to submit the application within the prescribed time limit
If the prospecting right holder needs to extend the exploration time, he shall go through the renewal registration formalities with the registration administration organ 30 days before the expiration of the validity period of the exploration license. If the application is overdue, the prospecting right shall be annulled by itself. Within 90 days after the cancellation of the exploration license, the prospecting right owner shall not apply for the prospecting right within the scope of the canceled block.
Legal basis:Article 50 of the Administrative Licensing Law, Article 10 of the Measures for the Registration and Administration of Mineral Resources Exploration Blocks (2014 Revision), and Article 24 of the Measures for the Registration and Administration of Mineral Resources Exploration Blocks (2014 Revision)
2. the applicant meets the requirements
If the prospecting right owner needs to extend the exploration time, it shall meet the requirements of the state on the nature of the prospecting right owner's unit. In principle, the non-oil and gas prospecting right owner can be a profit-making legal person or a public institution legal person in a non-profit legal person; in principle, the oil and gas (including oil, hydrocarbon natural gas, shale gas, coalbed methane, and natural gas hydrate) prospecting right owner It should be a profit-making legal person.
Notice of the Ministry of Natural Resources on Further Improving the Registration and Administration of Mineral Resources Exploration and Mining (Natural Resources Regulation [2023] No. 4), Article 1, Paragraph (I), Item 2
The 3. application materials are complete and conform to the legal form.
If the prospecting right owner needs to extend the exploration time, he shall prepare the following materials:
1. The registration of the application for the continuation of the prospecting right and the block scope map of the application;
2. Survey license;
3. The exploration contract, the exploration work plan or the certification documents of the entrusted exploration;
4. Exploration implementation plan and accessories;
5. Review opinions;
6. A copy of the qualification certificate of the exploration unit: a copy of the business license of the enterprise or the legal person certificate of the institution;
7. Proof of the source of funds for the exploration project;
8. Opinions of natural resources authorities.
Legal basis:Article 6 of the Measures for the Registration and Administration of Mineral Resources Exploration Blocks, and Article 1 of the Notice of the Ministry of Natural Resources on Further Improving the Registration and Administration of Mineral Resources Exploration and Exploitation (Natural Resources Regulation [2023] No. 4), Article 1, Paragraph (I), Paragraph 3, Paragraph (X), Notice on Regulating the Management of Mineral Resources Exploration Implementation Plan (No. 2010 issued by the Department of Land and Resources), Article 1
4. exploration implementation plan conforms to regulations
The parties applying for the continuation of oil and gas prospecting rights shall, in accordance with the format and content requirements prescribed by the state, prepare the oil and gas mining rights exploration implementation plan, development and utilization plan, exploration and mining work progress report, and be responsible for the scientificity and feasibility of the plan and the authenticity and reliability of the report information.
The parties applying for the continuation of non-oil and gas prospecting rights shall submit the mineral resources exploration implementation plan and evaluation opinions approved by the evaluation. The exploration implementation plan shall be prepared by the project undertaking unit with corresponding geological exploration qualifications in accordance with national requirements.
Legal basis:Outline for Compilation of Implementation Plan for Oil and Gas Exploration, Outline for Compilation of Plan for Oil and Gas Development and Utilization, Outline for Compilation of Progress Report on Oil and Gas Exploration and Exploitation (Natural Resources Development [2023] No. 34), Outline for Compilation of Implementation Plan for Mineral Resources Exploration, Requirements for Review of Implementation Plan for Mineral Resources Exploration (Ministry of Land and Resources Development [2010] No. 29)
5. minimum exploration input and usage fee
The minimum exploration input refers to the minimum cost directly used for geological and mineral exploration projects, which is accounted for according to the minimum input per unit area (square kilometers) of a single prospecting right. The accounting scope of the minimum exploration input includes topographic mapping, geological survey, remote sensing, geophysical prospecting, geochemical prospecting, drilling, mountain engineering (including pit exploration, shallow wells, exploration troughs), rock and mineral testing, site construction, other geological work, comprehensive research and scientific research.
The prospecting right owner shall, from the date of obtaining the exploration license, pay the exploration right use fee on an annual basis and complete the minimum exploration input. The prospecting right owner has used the prospecting right for 5 years before the continuation of the prospecting right. After the continuation of the prospecting right, the minimum exploration investment shall not be less than 10000 yuan per square kilometer. At the same time, a user fee of 400 yuan per square kilometer shall be paid in the first year after the extension of the prospecting right, and 500 yuan per square kilometer per year from the next year.
Legal basis:Articles 12 and 17 of the Measures for the Registration and Administration of Mineral Resources Exploration Blocks
6. deductions in accordance with the provisions of the area
When applying for the registration of the extension of the prospecting right, 20% of the area specified in the prospecting license shall be deducted. The scope of submitted resources of non-oil and gas/the scope of submitted proven geological reserves of oil and gas are not included in the deduction base, and the area of deep or upper exploration of established mining rights is not deducted. The oil and gas prospecting right may deduct the same area of other blocks of the prospecting right owner in the same basin, but the newly transferred oil and gas prospecting right shall not be used to deduct the area of other blocks of the prospecting right owner within 5 years.
Legal basis:Article 7 of the Opinions of the Ministry of Natural Resources on Several Matters Concerning Deepening the Reform of Mineral Resources Management (2023 No. 6)
7. in line with environmental protection, planning and other public interest requirements
The prospecting right must conform to the relevant provisions of national land space planning, mineral resources planning, ecological environment protection and national industrial policies.
Legal basis:"Outline of Land and Space Planning of Shandong Province (2021-2035)", "Master Plan of Mineral Resources of Shandong Province (2021-2025)" and "14th Five-Year Plan of Ecological Environment Protection of Shandong Province"
Summary
The continuation of prospecting rights needs to consider many aspects, and the prospecting right owner should make relevant preparations in advance. Avoid the loss of the prospecting right due to the rush of preparation time, which results in the loss of the legal application period.
Key words:
Related News
Zhongcheng Qingtai Jinan Region
Address: Floor 55-57, Jinan China Resources Center, 11111 Jingshi Road, Lixia District, Jinan City, Shandong Province
