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Decree No. 99-818-PM of 9 November 1999 to lay down the conditions for setting up and operating establishments classified as dangerous, unhealthy or obnoxious.

Law N°99-12 of 22 December to authorize the President of the Republic to Ratify the Protocol for the Suppression unlawful Acts of Violence at Airports Serving International Civil Aviation, Supplementary to the Convention for the Suppression of Unlawful Acts against the Safety of Civil aviation, Done at Montreal.

Law No. 96-12 of 5 August 1996: Framework law on environmental management.

Law No. 98-15 of 14 July 1998 relating to establishments classified as dangerous, unhealthy or obnoxious.

Law N°99-13 of 22 December 1999 to Institute the Petroleum Code.

Decree No. 99-818-PM of 9 November 1999 to lay down the conditions for setting up and operating establishments classified as dangerous, unhealthy or obnoxious
The Prime Minister, head of Government,

Mindful of the Constitution;

Mindful of Law No. 96-12 of 5 August 1996: Framework law on environmental management;

Mindful of Law No. 98-15 of 14 July 1998 relating to establishments classified as dangerous, unhealthy or obnoxious;

Mindful of Decree No. 92-89 of 4 may 1992 to define the duties of the Prime Minister as amended and supplemented by Decree No.95-205 of 7 December 1997 to organize the Government as amended and supplemented by Decree No. 98-67 of 28 April 1998;

Mindful of Decree No.97-206 of 7 December 1997 to appoint the Prime Minister;

Hereby decrees as follows:

1. This decree lays down the conditions for setting up and operating establishments classified as dangerous, unhealthy or obnoxious.

Chapter I

Provisions applicable to class I

Establishments
2. (1) Any person wishing to set up and operate an establishment subject to authorization shall submit an application to the minister in charge of classified establishments.

The application, the original of which shall be stamped at the rate in force, shall be submitted in five copies and shall indicate:

- The full name, residence, filiation and nationality of the applicant, in the case of a natural person.

- The company name, legal form, headquarters address, share capital where necessary, as well as the official capacity of the person signing the application, in the case of corporate bodies;

- The place of location of the establishment;

- The nature and volume of activities which the developer intends to carry out as well as the heading under which the establishment should be classified;

- The manufacturing process, inputs as well as the products manufactured, specifying their chemical composition and biodegradability. In this case, the applicant may submit separately a single copy of any confidential information, which, if revealed, would betray industrial secrets.

(2) Where the setting-up of an establishment requires the prior obtention of a building permit, the application for authorization shall be forwarded along with such permit or, failing this, evidence that the application for a building permit has been filed, as a building permit is not an authorization to establish or operate an establishment.

3. Each copy of the application for authorization shall be submitted along with the following documents:

- A, map drawn to the scale of 1:50,000 approved by a sworn surveyor of the surveys services, and indicating the site of the envisaged establishment;

- A plan drawn to the scale of 1:10,000 approved by a sworn surveyor of the surveys services, showing the surroundings of the establishment on a 100-metre radius. This plan shall also show all buildings and their various uses, railway lines, public highways, water points and watercourses;

- A general plan drawn to the scale of 1:200 indicating the envisaged lay out of the establishment and its various premises;

- An environmental impact study conducted in accordance with the laws and regulations in force;

- A study of hazards conducted in accordance with the laws and regulations in force;

- An emergency plan prepared in accordance with the laws and regulations in force;

- The plans, cross-section diagrams and technical documentation pertaining to the equipment;

- A receipt testifying payment into the public treasury of the fee for the issue of the operation authorization referred to in Article 27 below.

4. (1) Applications for authorization to operate class I establishments shall be subject to a public investigation opened by the minister in charge of establishments classified as dangerous, unhealthy or obnoxious who shall appoint officers in charge of the investigation.

(2) The opening of this investigation shall be made public by:

- The senior divisional officer of the division in which the establishment is located;

- The sub-divisional officer of the sub-division in question;

- The mayor of the council area in which the establishment is located.

(3) The abovementioned officials shall post the public notice referred to in Article 5 below. For each classified establishment, the notice shall be posted within a radius of at most 5 kilometres within the subdivision or local council where the establishment is located.

(4) An investigation register shall be opened in the sub-divisional or council office of the area of location of the establishment. The public can record their remarks therein after examining the documents pertaining to the establishment.

5. (1) the cost of posting the public notice shall be borne by the applicant. The completion of the posting exercise shall be certified by the officials referred to in Article 4 above.

(2) The notice shall specify the nature and class of the establishment, its attendant hazards and nuisances, the site on which it shall be built as well as the period of the investigation and the full names and address of the officers in charge of the investigation.

(3) In addition, the investigation shall be announced through a notice inserted in the Official Gazette in similar manner as above, and through all other channels as warranted by the nature and magnitude of the hazards and inconveniences of the proposed establishment.

6. (1) Once the investigation is opened, the minister in charge of classified establishments shall forward a copy of the application for authorization to the services in charge of the environment, public health and, if need be, agriculture, livestock and industrial and commercial development for their opinion. The abovementioned services shall give their response within 20 (twenty) days with effect from the date the matter was referred to them. Beyond this time limit, their remarks shall not be taken into account.

(2) The minister in charge of classified establishments shall by order fix the date on which the project developer will present and explain his project to the population in the presence of the administrative authorities referred to in Article 4 above. The minutes of the ceremony shall be drafted and signed by the officers in charge of the investigation.

7. The duration of the public investigation on establishments subject to authorization shall be 30 (thirty) days. Beyond this period, the administrative authorities referred to in Article 4 above shall forward to the minister in charge of classified establishments a certificate attesting that the notice was posted and that the people concerned raised no objections to the setting up of establishments, or, failing that, the grounds for their objections.

8. (1) the investigation register shall be closed and signed by the officers in charge of the investigation. During the closing of the investigation, the officers in charge shall summon the applicant to appear within 8 (eight) days and shall notify him on the spot of the written or verbal remarks recorded in their minutes, while requesting him to submit a memorandum in response within 15 (fifteen) days.

(2) The officers in charge of the investigation shall forward the file thereof to the minister in charge of classified establishments within 8 (eight) days following the deposit of the applicant's response or the expiry date given to the latter to submit his response. The minister shall decide within a maximum period of one month as from the date of receipt of the file in his services.

(3) However, where the minister in charge of classified establishments is unable to reach a decision within the one-month period stipulated above, he may issue an order fixing a new deadline which may not exceed 2 (two) months.

9. (1) where the proposed establishment comprises several first-class installations, only one investigation shall be carried out and one order shall govern all these installations.

(2) The authorization shall be issued subject to the rights of third parties.

10. The order authorizing the operation of an establishment classified as dangerous, unhealthy or obnoxious shall specify the conditions for its setting up and operation, as well as the technical prescriptions for averting hazards to health, safety, public sanitation, agriculture, nature and the environment in general and for preventing any inconveniences to the neighbourhood.

11. (1) As part of the self-monitoring of waste dumped in the environment, the order granting authorization shall specify the methods of analysis and measurement necessary for controlling the establishment and for monitoring its impact on the environment.

12. (1) In order to inform the population concerned:

- A copy of the order granting the authorization shall be submitted to the order granting the authorization shall be submitted to the divisional, sub-divisional and council offices of the area of location of the establishment;

- Extracts of the order enumerating the conditions governing the establishment shall be posted in the sub-divisional and council offices for a maximum period of one month, the report of the above-mentioned authorities attesting to that. The same extract shall be posted before the offices of the beneficiary of the authorization and also be inserted in the Official Gazette.

(2) At the request of the operator, certain provisions which may be considered as industrial secrets may not be published as provided for in paragraph (1) above.

13. An order of the minister in charge of establishments classified as dangerous, unhealthy or obnoxious shall lay down the conditions for conducting emergency public investigation with a view to granting short-term authorizations to establishments which are not intended to function for more than one year or to those which experiment new technologies or are located on sites around which urban development projects are envisaged.

Chapter II
Provisions applicable to class II establishments
14. The declaration pertaining to a class II establishment shall, before the start of operation, be forwarded to the minister in charge of establishments classified as dangerous, unhealthy or obnoxious in five copies, the original of which shall be stamped at the rate in force.

It shall indicate:

- The full name, permanent residence, filiation and nationality, in the case of a natural person;

- The company name, legal form, headquarters address, shares capital where necessary as well as the official capacity of the signatory of the declaration, in the case of a corporate body;

- The place of location of the establishment;

- The nature and volume of activities which the developer intends to carry out as well as the heading under which the establishment is to be classified;

- A receipt showing payment into the public treasury of the fee for the issue of the declaration receipt provided for in Article 27 below;

In addition, the developer shall submit:

- a site plan of the establishment drawn to the scale of 1:50,000 approved by a sworn surveyor of the surveys services;

- a general plan drawn to the scale of 1/200, highlighting the physical arrangement of the establishment and showing on a 50-metre radius at least, the land use, inhabitated areas, watercourses and water points as well as communication routes;

- The method of collecting, recycling and treating solid waste as well as liquid or gaseous effluents;

- The building permit, if need be, given that the building permit is not valid as an authorization to set up or operate;

- An emergency plan drawn up in accordance with the laws and regulations in force.

15. Before taking a decision on the operator's declaration, the minister in charge of establishments classified as dangerous, unhealthy or obnoxious shall forward a copy thereof for recommendation to the council office of the area of location of the establishments as well as to the services in charge of environment, public health and, where necessary, agriculture, livestock and industrial and commercial development who shall respond within 10 (ten) days with effect from the date the matter was referred to them. Beyond this period, their remarks shall not be taken into consideration.

16. (1) The minister in charge of establishments classified as dangerous, unhealthy or obnoxious shall, by decision, issue a declaration receipt not later than 50 (fifty) days following the date of deposit of the declaration in this services and shall forward to the applicant a copy of the general prescriptions concerning the classified activity. At the expiry of this time limit, the declaration receipt shall be deemed granted.

(2) A copy of the decision referred to in paragraph 1 above shall be forwarded to the administrative and municipal authorities of the area of location of the establishment for the population concerned.

(3) At the request of the declarant, certain provisions of the decision, which might lead to the disclosure of industrial secrets, may not be published as provided for in paragraph 2 above.

17. (1) Additional prescriptions may, as and when necessary, be laid down against inconveniences inherent in the operation of a class 11 establishment with a view to protecting them against dangers to health, safety, public sanitation, agriculture, nature and the environment in general or to the neighbourhood.

(2) On the basis of a reasoned application addressed to the minister in charge of classified establishment, the operator of a second-class establishment may obtain the suppression or mitigation of certain prescriptions to which he is subjected.

Chapter III

Common provisions applicable to classified

Establishments
18. (1) The emergency plan referred to in Articles 3 and 14 above shall be approved by a committee comprising, as the case may be:

- One representative of each of the ministers in charge of:

* Classified establishments, Chairman

* Territorial administration

* Defence

* The environment

* Industrial and commercial development

- One representative of the Delegate-General for National Security.

(2) The approval committee referred to in paragraph (1) above shall ensure annually the sound functioning and reliability of the equipment allocated for the implementation of the emergency plan.

(3) A decision of the minister in charge of classified establishment shall record the composition of the approval committee.

19. (1) The setting up and operation of any classified establishment shall be subject to the prior obtention of the order authorizing operation or the declaration receipt, as the case may be.

(2) Any change of operator or of the name of an authorized or a declared establishment shall be notified by the new operator or his representative to the minister in charge of classified establishments within one month of the date the establishment was taken over.

20. Any transfer of an establishment to another site, or any modification thereto leading to a substantial change in the initial application or declaration shall, before it is carried out, require an application for supplementary authorization or a new declaration, subject to the same formalities as the initial application or declaration.

21. (1) Where a classified establishment is not operational within 2 (two) years following notification of the order authorizing its operation or the issue of the declaration receipt, or where it has not been operating for 2 (two) consecutive years, a new authorization or declaration shall be required before it resumes its activities.

(2) Where an establishment stops the activity for which it was authorized or declared, its operator shall notify the minister in charge of classified establishments there of within the mouth following the stoppage. The operator shall be issued a free receipt for this notification. He shall restore the site to its original state such as to leave no trace of hazard or inconvenience to the neighbourhood.

22. The operator of an establishment subject to authorization or declaration shall immediately notify the minister in charge of classified establishments within at most 48 (forty – eight) hours of any accident or incident, which occur on account of the functioning of his establishment.

23 The minister in charge of classified establishments may decide that an establishment shut down temporarily following a fire out break; an explosion or any other accident resulting from its poor functioning shall resume operations subject to a new authorization or a new declaration, as the case may be.

24 Where an establishment has been banned, closed down or suspended the operator shall be required to take appropriate measures for its surveillance and particularly for the removal of dangerous, toxic, perishable or repellent substances as well as animals found within the establishment.

25 The inspection and control of establishments classified as dangerous, unhealthy or obnoxious shall be carried out under the authority of the minister in charge of classified establishment by inspectors appointed to that end or by approved individuals or corporate bodies.

Chapter IV

Financial provisions

26 Within the meaning of this decree and for the calculation of the fees for the inspection and control of classified establishments and the pollution tax:

- Built-on area shall mean the area occupied by the installations mentioned in the list of establishments classified as dangerous, unhealthy or obnoxious.

- Non-built –on area shall mean the area occupied by the unclassified installations of the establishments concerned notably administrative buildings and residential quarters;

-Biodegradable pollution shall mean any industrial waste, which can easily be destroyed by bacteria or other biological agents;

-Non-biodegradable pollution shall mean any industrial waste containing essentially persistent, toxic or noxious substances with a high bio accumulative tendency.

27 (1) All establishment classified as dangerous, unhealthy or obnoxious shall be required to pay a fee for the issue of the authorization to operate or the declaration receipt fixed at the following rates;

-500,000 (five hundred thousand) CFA francs for establishments subject to authorization;

-200,000 (two hundred thousand) CFA francs for establishments subject to declaration.

(2) The classified establishment referred to in article 20 and 23 above shall also be required to pay the fees fixed in this article.

28 Any establishment classified as dangerous, unhealthy or obnoxious which pollutes the environment shall be required to pay the annual pollution tax whose multiplier coefficient, based on the type and volume of solid, liquid or gaseous waste is defined in the annex to this decree.

Chapter V

Miscellaneous and final provisions
29 The list of establishment classified as dangerous, unhealthy or obnoxious shall be fixed by order of the minister in charge of classified establishments

30 The cost of the public investigation of establishments classified as dangerous, unhealthy or obnoxious and the allowances of the officers in charge of the investigation shall be borne by the exploiter.

31 All previous provisions repugnant hereto, particularly those of Decree N° 76-372 of 2 September 1976 to lay down regulations governing establishment classified as dangerous, unhealthy or obnoxious are here by repealed.

32The Minister of Mines, Water Resources and Power is responsible for the implementation of this decree which shall be registered, published according to the procedure of urgency and inserted in the Official Gazette in English and French.

Yaoundé, 9 November 1999.

Peter Mafany Musonge

Prime Minister

Head of Government.

PRESIDENCY OF THE REPUBLIC

On 23 September 1971

The National Assembly deliberated and adopted, the President of the Republic hereby enacts the law set out below:

Section 1: The President of the Republic is hereby authorized to ratify the Protocol for the Suppression of unlawful Acts of Violence at Airports serving International Civil Aviation, supplementary to the Suppression of unlawful Acts against the Safety of Civil Aviation, Done at Montreal on 23 September 1971, signed at Montreal on 24 February 1988.

Section 2: This law shall be registered, published according to the procedure of urgency and inserted in the Official Gazette in English and French.

Yaoundé, 22 December 1999

Paul Biya
President of the Republic

Law No. 98-15 of 14 July 1998 relating to establishments classified as dangerous, unhealthy or obnoxious

The National Assembly deliberated and adopted, the President of the Republic hereby enacts the law set out below:

Part I
General Provisions
Section 1: - This law governs, within the framework of the principles of environmental management and protection of public health, establishments classified as dangerous, unhealthy or obnoxious.

Section 2: - (1) The following shall be subject to the provisions of this law: factories, workshops, depots, building sites, quarries and, in general, industrial, handicraft or commercial installations operated or owned by any natural person or corporate body, private or public, and constituting or potentially constituting either a danger to health, safety, public hygiene, agriculture, nature and the environment in general, or an inconvenience to the neighborhood.

(2) The types of establishments subject to the provisions of this law and their classification shall be laid down by regulations.

Section 3: - Dangerous, unhealthy or obnoxious establishments shall be divided into two classes according to the dangers or the gravity of the inconveniences inherent in their activities:

(a) Class I shall comprise establishments whose activities can be authorized only if measures are taken to prevent the dangers or inconveniences referred to in section 2 above; such authorization may be subject to the location of the said establishments outside residential areas or buildings occupied by third parties;

(b) Class II shall comprise establishments which, although not constituting major dangers or inconveniences to the interests referred to in Section 2 above are nonetheless subject to the general prescriptions aimed at protecting such interests.

Part II
Specific Provisions Applicable to Class I Establishments
Section 4: - The setting up and operation of Class I establishments shall be subject to the prior issue of an authorization by the minister in charge of classified establishments, upon the recommendation of the other government services concerned.

Section 5: - (1) The manager of a Class I establishment shall, prior to the opening of the said establishment, conduct studies on dangers in accordance with conditions laid down by regulations.

Section 6: - (1) Application for authorization to set up Class I establishments shall be subject to a public investigation opened by the minister in charge of classified establishments, under conditions laid down by regulations.

(2) The authorization shall specify the conditions for locating and operating the establishment as well as the technical prescriptions for the protection of the interests mentioned in section 2 above.

(3) The authorization shall be issued, subject to third party rights.

Section 7: -As concerns the protection of the interests referred to in section 2 of this law, The minister in charge of classified establishments shall, under conditions laid down by regulations, demarcate a security zone around class 1 establishments within which the building of homes and the carrying out of any other activity incompatible with the functioning of the said establishments shall be forbidden

Section 8: - (1) Class 1 establishment, which cause solid, liquid, or gaseous pollution, shall monitor their waste.

(2) Standards set by regulations shall determine the acceptable levels of waste emissions.

PART III

Specific Provisions Applicable to Class II Establishments
Section 9: - The opening of a class II establishment shall be subject to a prior written declaration sent to the minister in charge of classified establishments who shall, upon the recommendation of the other government services

Section 10: - Class II establishments shall be subject to the general prescriptions laid down by the regulations for the protection of the interests referred to Section 2 of this law.

Section 11: - (1) Supplementary prescriptions may, as and when necessary, be laid down against the inconveniences inherent in the operation of a Class II establishment, under conditions laid down by regulations.

(2) The manager of a Class II establishment may, by an application with reasons therefore sent to the minister in charge of classification establishments, obtain the cancellation or alleviation of some of the prescriptions to which he is subjected.

PART IV

COMMON PROVISION APPLICABLE

TO CLASSIFIED ESTABLISHMENTS

CHAPTER I
FUNCTIONING OF CLASSIFIED ESTABLISHMENTS
Section 12- (1) The operator of any classified establishment shall be bound to draw up an emergency plan through which the competent authorities and neighboring inhabitants can be alerted in case of disaster or impending disaster. Such plan shall also provide for the evacuation of personnel as well as the means to contain the disaster.

(2) The emergency plan must be approved by the competent government services, which shall periodically ascertain the good state and reliability of the equipment needed to execute the plan.

Section 13: - Any change of operator or of the name of a classified establishment shall be reported.

Section 14: - An additional authorization or a new declaration shall be required for the transfer of a classified establishment to another site or for modifications hereto, depending on its class.

Section 15: - Where a classified establishment has been authorized or declared but is not operational within two years with effect from notification of the authorization or issue of the declaration receipt, or where it has not been operating for two consecutive years, a new authorization or declaration shall be required before it resumes its activities.

Section 16: -The minister in charge of classified establishments may close down a classified establishment whose operation is dangerous or inconvenient to the interests mentioned in Section 2 of this law.

CHAPTER II
Inspection and control of classified Establishments
Section 17: - Within the meaning of this law its instruments of application, inspection and control of a dangerous, unhealthy or obnoxious classified establishment shall refer to all the operations carried out within the establishment for administrative and technical supervision purposes, and designed to avert the dangers and inconveniences mentioned in Section 2 above

Section 18: - Classified establishments shall be inspected and controlled by sworn officials of the ministry in charge of such establishments or of any other competent government service.

Section 19: - (1) the task of the officials referred to in Section 18 above shall consist in:

- Controlling the functioning of classified establishments;

- Auditing them and drawing up reports thereon;

- Ensuring compliance with the technical prescriptions and with the provisions of this law and of its instruments of application.

(2) They shall have the right to visit establishments subject to their supervision at any time, and at least once every six months.

Section 20: - The ministry in charge of classified establishments may approve specialized natural persons or corporate bodies either to control and audit classified establishments, or to run laboratories, which can determine the quantity and type of effluent, dumped by the said establishments. This shall be done under conditions laid down by regulations.

PART V
Financial Provisions
Section 21: - Establishments classified as dangerous, unhealthy or obnoxious shall be required to pay a fee for the issue of the operating authorization or of the declaration receipt at rates fixed by regulations.

Section 22: - Periodic inspection and control fees of Class II establishments shall be calculated on the basis of the area occupied by the establishments and currently according to successive brackets, as follows:

Area Fee
From 0 m2 to 10 m2 inclusive 10,000 frs

From 10 m2 to 50 m2 inclusive 200 frs /m2

From 50 m2 to 100 m2 inclusive 120 frs /m2

From 100 m2 to 200 m2 inclusive 60 frs/m2

From 200 m2 to 1,000 m2 inclusive 40 frs/m2

Above 1,000 m2 30 frs/m2

(2) The above rates shall be halved for the non-built-on areas of the establishment concerned.

(3) These rates shall be reduced by 50% for craftsmen employing not more than 4 (four) workers.

Section 23: The fees for the inspection and control of Class I establishments shall be calculated following the method provided for in Section 22 above. The amount of the fees shall be doubled.

Section 24: The fees for the inspection and control of classified establishments shall be borne by the operators thereof.

Section 25: (1) classified establishments, which pollute the environment, shall be liable to an annual pollution tax.

(2) The amount of the tax paid by each establishment shall be equal to the product of a base rate times a multiplier coefficient.

(3) The rate and method of calculating the pollution tax shall be determined by the finance law.

(4) The parameters relating to the type and quantity of waste produced by such establishments shall be determined under conditions laid down by regulations.

Section 26: - (1) Classified enterprises which import equipment used in eliminating greenhouse gases, carbon dioxide and chlorofluorocarbons from their production processes or products, or to reduce any from of pollution, shall be granted a reduced customs tariffs on such equipment in the proportions and for periods determined as and when necessary by the finance law.

(2) Operators of classified establishments who take environmental protection measures shall be granted a deduction from taxable profits under conditions laid down by the finance law.

Section 27: (1) The fee for the issue of the operating authorization or the declaration receipt, inspection and control fees, the pollution tax as well as the penalties provided for in this law shall be calculated by the sworn inspectors for classified establishments and collected by treasury officials

(2) The fees for the control and inspection of classified establishments, the annual pollution tax and various penalties must be paid within 45 (forty-five) days following notification of the statements of amounts due prepared by the sworn inspectors who carry out a control or established the lack of waste treatment equipment or the presence of a public health hazard.

(3) All sums collected shall be paid into the Treasury and shared under conditions laid down in the finance law

Part VI
Administrative Penalties

Section 28: -(1) Without prejudice to the penalties provided for under this law, where an inspector responsible for controlling classified establishments records the non-compliance with the conditions required of the operator, the minister in charge of the said establishments shall serve the operator with a notice, requesting him to fulfill the conditions within a time-limit to be determined by him but in any case, not exceeding three months

(2) If, upon expiry of the above time limit, the operator fails to comply, the minister in charge of classified establishments may:

- Automatically execute the prescribed measures at the operator’s cost;

- Oblige the operator to pay to the public accountant an amount corresponding to the cost of work to be carried out, which amount shall be reimbursed to the operator as the work progresses and, if need be, collect such funds by force;

- Suspend the activities of the establishment by order until the imposed conditions are complied with.

Section 29: - (1) Where a classified establishment is operated without the declaration or authorization required by this law, the minister in charge of classified establishments shall serve notice on the operator, requesting him to regularize his situation within a determined time-limit not exceeding 2 (two) months. The minister in charge of classified establishments shall, by order issued with reasons therefore, suspend the activities of a dangerous, unhealthy and obnoxious establishment until it files its declaration or applies for the authorization to operate.

(2) Where the operator of a classified establishment ignores the notice issued him to regularize his situation or where his application for authorization is rejected, the minister in charge of classified establishments may, if necessary, close down or ban such establishment.

(3) Where the operator of a classified establishment fails to comply within the time limit fixed, the minister in charge of classified establishments shall apply the measures laid down section 28 above.

Section 30: - The minister in charge of classified establishments shall use the forces of law and order to seal any such establishment which continues to operate either in violation of a closure or ban order or an order rejecting the operation of such establishment.

Section 31: - During the period of suspension imposed in accordance with the provision of section 28 and 29 above, the operator of classified establishment shall be bound to take steps to provide security in the premises of such establishment.
Part VII

Liability and penalties

Chapter I
Liability

Section 32: - (1) Without prejudice to the penalties inflicted on persons with criminal liability, and notwithstanding the inspectors responsible for controlling classified establishments, any operator thereof shall, without need to prove an offence committed made by them, be vicariously liable where their establishment causes bodily injury or damage due to the improper functioning of such establishment.

(2) The liability referred to in paragraph (1) above shall be shared where the person who caused the bodily injury or damage can prove that it occurred as a result of the victim’s fault. The person shall be exonerated in case of force majeure.

Section 33: - the proprietor, operator, director or manager as the case may be, of a classified establishment where the offence was committed may be declared vicariously liable to repairs of the site.

Chapter II
Penalties

Section 34: -(1) a fine of from 500,000 (five hundred thousand) to 2,000,000 (two million) CFA francs and imprisonment for from six months to one year, or both such imprisonment and fine, shall be imposed on whoever:

- Operates an establishment falling under one of the categories of classified establishments without prior authorization or declaration;

- Continues to operate a classified establishments which has been ordered to be closed;

- Obstructs the inspection, control, evaluation and analysis provided for under this law

(2) In case of a repeat offence, the highest of the penalties provided for in paragraph (1) above shall be doubled and imposed on him.

Section 35: -the penalties laid down in this law shall be supplemented by those provided for by the Penal Code and the laws relating to environmental protection.

Section 36: -the provisions of sections 54 and 90 of the penal code relating to suspended sentence and extenuating circumstances shall not be applicable to the penalties provided for in this law.

Chapter III
Recording violations
Section 37: - (1) without prejudice to the prerogatives of the legal department and of judicial police offices with general jurisdiction the sworn officials of the government services in charge of classified establishments or the other government services concerned, in particular those in charge of the environment and health, shall be responsible for making enquiries, recording cases of violation and instituting legal proceedings against offenders in accordance with the provisions of this law.
(2) The persons referred to in paragraph (1) above shall, at the request of the service concerned, take an oath before a competent court under the conditions defined in the decree to implement this law.

(3) While on duty, the sworn officials referred to above shall be bound to carry their professional cards.

Section 38: - (1) any violations shall be duly recorded in a report.

(2) Violation shall be detected and recorded by 2 (two) persons who shall sign the report which shall be considered authentic until proved otherwise.

Section 39: - (1) A report on established violations must be submitted forthwith to the government service in charge of classified establishments and notified to the offender. The latter shall be allowed 20 (twenty) days from the date of notification to file a petition against the report. No petition shall be accepted after that period.

(2) In the event of a petition filed within the time limit provided for in paragraph (1) above, the matter should be examined by the service in charge of classified establishments.

Where the petition is founded, the report shall be considered null and void.

Conversely, and in the absence of settlement, the service in charge of classified establishments shall institute proceedings in accordance with the laws in force.

Chapter IV

Settlement

Section 40- the ministry in charge of classified establishments shall have full powers to enter into a settlement. To that end, the matter should be duly referred to it by the offender.

(2) The amount of the settlement shall be fixed in consultation with the ministry in charge of finance. This amount may not be less than the corresponding minimum penal fine.

(3) The settlement procedure shall precede any possible legal procedure, under pain of being declared null and void.

(4) The proceeds of the settlement shall be paid in full to the national Environment and Sustainable Development Fund, as provided for in Section 11 of Law No. 96-12 of 5 August 1996: outline law on environmental management.

Part VIII
Miscellaneous, Transitional and Final Provisions
Section 41: - Where the operation of an unclassified establishment poses serious inconveniences for the protection of the interests mentioned in Section 2 of this law, the minister in charge of classified establishments may:

- Notify the operator to take the necessary measures to eliminate such dangers and inconveniences;

- If need be, suspend the operation of the establishment pending its classification.

Section 42: - for the purpose of applying this law to classified establishments operated by national defence or security services, the duties conferred on sworn employees of the ministry in charge of classified establishments or of other ministries concerned shall be performed by officers and civilian employees of the armed forces appointed for this purpose. Such appointment shall be notified to the ministry in charge of classified establishments.

Section 43: - Classified establishments run by government services, regional and local authorities and charity institutions shall be exempted from inspection and control fees.

Section 44: - (1) The authorizations granted and the receipts issued before the publication of this law shall remain valid.

(2) Operators of classified establishments governed by this law shall have a time limit of 6 (six) months with effect from the date of enactment of the said law to comply with it.

Section 45: Decrees to implement this law shall define, as and when necessary, the conditions thereof.

Section 46: all previous provisions repugnant hereto, in particular those of Law No. 76-3 of 8 July 1976 to fix the fees for the inspection and control of dangerous, unhealthy or obnoxious establishments, are hereby repealed.

Section 47: this law shall be registered, published in accordance with the procedure of urgency, and inserted in the Official Gazette in English and French

Yaoundé, 14 July 1998

Paul Biya

President of Republic.

Law N°99-13 of 22 December 1999 to Institute the Petroleum Code
The National Assembly deliberated and adopted, the President of the Republic hereby enacts the law set out below:

Part I
General Provisions
Section 1: This law institutes the Petroleum Code. To this end it shall:

- Promote Petroleum Operations throughout the national territory;

- Lay down conditions for hydrocarbons prospection, exploration, exploitation and transportation;

- Lay down the legal, fiscal and customs and exchange schedule of Petroleum Operations, subject to the provisions of section 118 below;

- Determine the right and obligations relating to petroleum operations.

Section 2: For purposes of this Code and its texts of application, the terms herein after shall have the following meaning:

a) “Authorisation (s)”: any or all of the authorisations granted under this Code;

b) “Exploitation Authorisation”: the Authorisation for Hydrocarbons Exploitation;

c) “Prospection Authorisation”: the Authorisation for Hydrocarbons prospection;

d) “Provisional Exploitation Authorisation”: the provisional Authorisation for Hydrocarbons Exploitation;

e) “Exploration Authorisation”: the Authorisation for Hydrocarbons Exploration;

f) “Domestic Transportation Authorisation”: the Authorisation for Transportation of Hydrocarbons by pipeline;

g) “Concession Contract”: Petroleum Contract attached to a Hydrocarbons Exploration permit and, as the case may be, to one or more Exploitation concessions;

h) “Production Sharing Contract”: Petroleum Contract whereby the Holder receives compensation in kind by being entitled to a share of production;

i) “Petroleum Contract”: Concession Contract or Production sharing Contract entered into between the State and a Holder after the date of promulgation, of this Code for the purpose of carrying out, on an exclusive basis, the Exploration and Exploitation of Hydrocarbons within a specified area;

j) “Exploitation”: operation intended to extract Hydrocarbons for commercial purposes, in particular the development and production operations as well as ancillary activities, such as abandonment of wells and Hydrocarbons deposits;

k) “Hydrocarbons”: liquid or gaseous hydrocarbons as found in their natural state, otherwise referred to as crude oil or natural gas as the case may be, as well as all related products and substance extracted in association with the said Hydrocarbons;

l) “Operator”: A Petroleum Company which is a Holder or a co-Holder, responsible for the conduct and performance of the Petroleum Operations pursuant to the provisions of the Petroleum Contract. The Operator must be able to show a satisfactory record as operator, particularly in areas and under conditions similar to those of the area applied for, with regard to environmental protection;

m) “Petroleum Operations”: Hydrocarbons Prospection, Exploration, Exploitation, Transportation activities, and storage activities, excluding refining and distribution activities of petroleum products;

n) “Prospection”: preliminary activities of prospection and detection of possibilities of the existence of Hydrocarbons, particularly through the use of geological, geophysical or geochemical methods, excluding drillings that exceed a depth of three hundred (300) meters;

o) “Exploration”: delayed Prospection activities including drilling of Exploration wells intended to discover commercial Hydrocarbons deposits, as well as activities of appraisal and delineation of a Hydrocarbons discovery which is presumed to be commercial and the abandonment of Exploration wells;

p) “Petroleum Company”: a commercial company or an industrial and commercial public body which has shown evidence that it possesses the necessary technical and financial capabilities to properly carry out Petroleum Operations as well as to protect the environment. This company may be constituted either under the laws of Cameroon or under any foreign law. In the latter case, it must, throughout the duration of the Petroleum Contract, have a permanent establishment in the Republic of Cameroon, registered on the registry of Commerce, and comply with the legislation and regulation in force on commercial companies;

q) “Territory of Cameroon”: land and maritime area as well as the Exclusive Economic Zone (EEZ) of the Republic of Cameroon;

r) “Hydrocarbons Mining Title”: An Exploration permit or the Hydrocarbons Exploitation concession issued in connection with a Concession Contract;

s) “Holder”: A Petroleum Company or a consortium of commercial companies at least one of which is a Petroleum Company, bound to be the State by a Petroleum Contract the term Holder also include the co-Holders;

t) “Transportation”: activities of Transportation by pipeline of extracted Hydrocarbons up to the loading points, refinery, or major consumption centres on the territory of Cameroon, which do not fall within the scope of Law no 96-14 of 5 August 1996 regulating the transportation of Hydrocarbons via pipeline from third-party countries, excluding gathering lines from the fields;

u) “Special Petroleum Operations Zones”: portions of the Hydrocarbons national mining lands on which Exploration and Exploitation operations require an increased effort, particularly as regards the type of production, the type, grade, make up of quality of Hydrocarbons, the techniques of enhanced recovery utilised, the water depth for the deep offshore zones located within the Republic of Cameroon’s exclusive Economic Zone, the type of the terrain, the distance from the means of transportation or the fragility of the environment.

Section 3: (1) All deposits or natural accumulations of Hydrocarbons located within the soil or sub-soil of the Territory of Cameroon, whether or not discovered, are and shall remain the exclusive property of the State.

(2) For purposes of Petroleum Operations, the State exercises sovereign rights over the entire Territory of Cameroon.

Section 4: (1) Natural persons or legal entities, including the owners of the surface area, may only undertake Petroleum Operations, if previously authorised so to do by the State, in a manner which is consistent with the provisions of this Code.

(2) Any person who engages in Petroleum Operations may occupy the land necessary for such operations, both within and beyond the area covered by its Authorisation or Petroleum Contract. The occupational use of such land is subject to the legislation in force relating to land tenure and state lands.

(3) In order to have access to the land required for the said Petroleum Operations, the Holder shall apply to the competent authority for a public inquiry into the status of land, under the conditions specified in Chapter 1 of Part IV of this Code.

Section 5 : (1) The State reserves the right to undertake Petroleum Operations either directly or through duly mandated government bodies or units.

(2) The State may also authorise commercial companies to carry out Petroleum Operations in furtherance of a Petroleum Contract entered into between them and the State, in accordance with the provisions of this Code.

Section 6: (1) The State, either directly or through a duly mandated government body or unit, reserves the right to acquire or have acquired, an interest under any legal form whatsoever, in all or part of the Petroleum Operations which are the subject of a Petroleum Contract, in accordance with the terms and conditions provided in such Petroleum Contract.

(2) In the case referred to in subsection (1) above, the state or the duly mandated government body or unit shall have the same rights and obligations as the Holder to the extent of its participation in the Petroleum operations under the arrangements specified in the Petroleum Contract.

Section 7: (1) A Petroleum Contract may only be entered into with a Petroleum Company or jointly with several commercial companies at least one of which is a Petroleum Company. The Authorizations derived there from and the Hydrocarbons Mining Titles may be granted only to such companies. A Petroleum Company may be the Holder of several Petroleum Contracts.

(2) Several commercial companies, one of which must be a Petroleum Company, may form a joint venture for the purpose of entering into and executing a Petroleum Contract. a Petroleum Company under the conditions set forth by the Petroleum Contract as long as the non-Petroleum Company has a minority interest in the consortium, which is the Holder of the Petroleum Contract, and is not the Operator.

(3) Copies of all protocols, contracts or agreements relating to any joint venture, including the appointment of the Petroleum Company, which will act, as Operator shall be forwarded to the State for information.

(4) Activities related to Petroleum Operations are considered commercial transactions.

Section 8: (1) Subject to any acquired rights, the state may decide after consultation with the relevant government bodies or units, upon the areas to be open to Petroleum Operations for which Petroleum Contracts may be entered into or, where applicable for which authorisation or Hydrocarbons Mining Titles may be granted.

Such areas may be divided into blocks in accordance with the terms and conditions to be laid down by the decree of application of this Code.

(2) For reasons of general interest certain areas may, by regulation, be closed to Petroleum Operations.

Section 9: (1) The State addresses offers for Petroleum Contracts and applications for Authorisations at its absolute discretion. Absolute or conditional rejection shall not entitle the applicant to any recourse or to claim compensation of whatsoever form from the State.

(2) Subject to any acquired rights, no right of priority may be claimed in case of competing applications or offers received simultaneously.

(3) The information, which must be contained in, offers for Petroleum Contracts and applications for Authorisations, as well as the criteria for their award, and the procedures terms for their renewal, assignment or transfer, shall be laid down by regulation.

Section 10: (1) The validity of an Authorisation or a Petroleum Contract over a given area does not preclude the granting to another entity of mining titles for the exploration and exploitation of mineral substances other than Hydrocarbons over all or part of the given area, pursuant to the provisions of applicable legislation and regulation.

In like manner, the validity of the mining titles for the exploration of mineral substances other than Hydrocarbons does not preclude the entering into of a Petroleum Contract or of an Authorisation over all or part of the area in question.

(2) Where rights pertaining to different mineral substances overlap on the same area, the activity of the Holder with the most recent rights shall be conducted in such a way as not to hinder the activity of the Holder of the most senior rights in point of time.

Part II
Petroleum Contracts
Chapter I
Provisions Common to Petroleum Contracts

Section 11: (1) The Petroleum Contracts is negotiated and signed, on behalf of the State, by the government or any of its bodies or unit duly mandated for such purpose, and by the legal representative of the applicant(s).

It becomes effective upon its execution by the parties. However, for a Concession Contract, the corresponding Exploration permit will be granted by decree. The effective date of the Concession Contract shall be deemed to be the date of the grant of the exploration permit.

(2) The Petroleum Contract shall be governed and interpreted in accordance with Cameroonian law.

Section 12: A Petroleum Contract shall set forth:

a) The area of the Exploration Authorisation;

b) The minimum Exploration work programmes and corresponding financial commitments which the Holder undertakes to complete for the initial period of validity of its Exploration Authorisation and for each renewal period;

c) The duration of the Contract and of the different periods of validity of the Exploration Authorisation as well as the conditions for its renewal and extension, including the terns applicable to the reduction of the contract area;

d) Obligations relating to a commercial discovery and the development of a commercial field;

e) Terms and conditions for the granting of an Exploitation Authorisation, its different periods of validity and the conditions for its renewal and extension;

f) The rights and obligations of the contracting parties;

g) The work programmes and budgets and the procedures for supervising their execution;

h) The rights and obligations of the Holder with regard to Transportation of the extracted Hydrocarbons subject to the applicable regulatory provisions;

i) The rules relating to ownership of the production and its sharing between the contracting parties;

j) The legal regime applicable to property, whether real or personal, necessary to carry out Petroleum Operations, including the terms and conditions for its transfer to the State at the termination and expiration of the Contract;

k) The provisions relating to the participation of the State, or a government body or unit duly mandated for such purpose, in all or part of the Petroleum Operations, including the terms and conditions for its transfer to the State at the termination and expiration of the Contract;

l) Obligations relating to the training and employment of Cameroonian human resources;

m) Financial clauses, book-keeping and accounting rules specific to Petroleum Operations;

n) The obligations relating to environmental protection, which are in addition to those prescribed by the applicable legislation and regulations;

o) The obligations relating to the abandonment of deposits and of wells which must be met prior to expiration of the Petroleum Contract or Authorisation;

p) In the event the State carries on with Exploitation after termination or expiration of the Petroleum Contract, the basic terms which govern (i) the transfer to the State of the rights and obligations relating to the Exploitation notably the transfer of the service contracts which bind the Holder to its employees and sub-contractors, and (ii) the settlement by the Holder of outstanding liabilities;

q) The terms and conditions for the termination of the Petroleum Contract;

r) The clauses relating to the stabilization of economic and tax provisions which impact the profitability of investments;

s) Cases of force majeur;

t) The procedures for settling disputes, subject to the regulatory provisions in force relating to the settlement of disputes of a technical nature;

Chapter II
Types of Petroleum Contracts
Section 13: (1) The State may enter into Petroleum Contracts for the Exploration and the Exploitation of Hydrocarbons such as:

a) Concession Contracts which shall relate to the granting of Hydrocarbons Mining Titles consisting of Exploration permits and, where applicable, Exploitation concessions; or

b) Production Sharing Contracts.

(2) Wherever so required, the subject of a Petroleum Contract may be limited to the Exploitation of one or more Hydrocarbons deposits already discovered and delineated, unrelated to the prior grant of an Exploration Authorisation.

Concession Contract

Section 14: (1) A Concession Contract is entered into prior to the granting of a Hydrocarbons Exploration permit. It sets forth the rights and obligations of the state and Holder during the period of validity of the Exploration permit and, in the event of the discovery of a commercial Hydrocarbons field, during the period of validity of the Exploitation concession(s) attached thereto.

(2) The Holder of the Concession Contract shall be responsible for financing the Petroleum Operations and shall, in accordance with the provisions of the Concession Contract, be entitled to the Hydrocarbons extracted during the period of validity of such Contract, subject to the right of the State to collect royalty in kind.

II
Production Sharing Contract
Section 15: (1) In a Production Sharing Contract, the State directly or through a duly mandated public body or unit contracts for the services of a Holder for the purpose of carrying out, on its behalf and in an exclusive manner, within a specified area, Exploration activities and, in the event of a discovery of a commercial Hydrocarbons field, Exploitation activities.

The Holder shall be responsible for financing the Petroleum Operations.

(2) Petroleum Operations of a Production Sharing Contract shall give rise, depending on their nature, to an exclusive Authorisation for Exploitation covering the Exploitation of a commercial Hydrocarbons field.

Section 16: (1) Under a Production Sharing Contract. The Hydrocarbons production shall be shared between the State and the Holder in accordance with the terms of such Contract. The Holder shall receive a share of production as reimbursement for its costs and as compensation in kind, according to the following terms and conditions:

a) As specified in the Petroleum Contract, a share of the total Hydrocarbons productions shall be allocated to the reimbursement of petroleum costs actually incurred by the Holder under the Contract for the Petroleum Operations. This share, commonly referred to as cost oil or production for the recovery of costs; may not exceed the percentage of production specified in the Production Sharing Contract, which defines the recoverable petroleum costs, special amortisation terms for such costs as well as the terms and conditions for their recovery by taking a share of the production.

b) The remainder of the total Hydrocarbons production, after deduction of the share taken pursuant to paragraph a) above, commonly referred to as profit oil or production for compensation shall be shared between the State and the Holder in accordance with the terms set forth in the Petroleum Contract.

(2) The Production Sharing Contract may also provide for compensation in cash to the Holder rather than compensation in the form of a share of Hydrocarbons production. In such a case, the Contract shall be deemed to be a risk services contract.

Chapter III
Assignments and Surrenders of Petroleum Contracts

I
Assignments

Section 17 : (1) The rights and obligations under a Petroleum Contract as well as the Exploration Authorisation, and, where applicable, Provisional Exploitation Authorisations and Exploitation Authorisations deriving from the Petroleum Contract are assignable and transferable in whole or in part, subject to the prior approval of the Minister in charge of Hydrocarbons in accordance with the terms and conditions laid down by regulations in force and by the said Contract.

Special conditions for assignment or transfer to an affiliate or between co-Holders may also be specified in the Contract.

(2) The assignee of a right or an obligation under this Chapter must fulfil the conditions provided for in this Code and its texts of application.

Section 18 : The Holder of the Petroleum Contract shall submit to the Minister in charge of Hydrocarbons for approval any draft contract or agreement whereby the Holder promises to entrust assign or transfer, or whereby it entrusts, assigns or transfers in whole or in part, the rights and obligations resulting from the Petroleum Contract.

Any such contract or agreement shall only be entered into subject to be condition precedent of the approval mentioned above. Any instrument executed in breach of the provisions above shall be null and void and may lead to the forfeiture by the State of the Petroleum Contract, in accordance with the provisions of Section 116 of this Code.

Section 19 : (1) Where a transaction results in a change of control of the Holder company, the said company shall apply for the approval of the Minister in charge of Hydrocarbons in accordance with the terms and conditions specified by decree. The Minister in charge of Hydrocarbons may oppose it and compel the Holder to cancel such transaction, under the terms and conditions specified by the decree of application of this Code and by the Petroleum Contract.

(2) A refusal to cancel the transaction may result in the forfeiture of the Mining Title, or the termination by the State of the Petroleum Contract, as provided in the Petroleum Contract.

Section 20: Without prejudice to the provisions of article 7 above where a Petroleum Contract is entered into by several co-Holders, the forfeiture of one or more of them shall not result in the cancellation of the Authorizations deriving from the Contract, nor the termination of the Contract, if the remaining co-Holder(s) assume the obligations under the Contract. This forfeiture shall be deemed accepted by the Minister in charge of Hydrocarbons.

II
Surrenders

Section 21: (1) The Holder of an Exploration Authorisation may relinquish, in whole or in part, its rights over the surface areas covered by its Authorisation, provided a two (2) months notice is given to the Minister in charge of Hydrocarbons. The relinquishment shall take effect when accepted by the Minister in charge of Hydrocarbons. This shall result in the cancellation of the Authorisation over the area covered by such relinquishment.

(2) Except as otherwise provided in the Petroleum Contract, a partial surrender does not affect the Holder’s contractual obligations.

(3) On a total surrender the Petroleum Contract shall lapse. This surrender shall be effective only where the Holder has fulfilled all the obligations prescribed by the Petroleum Contract and by applicable regulations, particularly those relating to environmental protection, and the abandonment of the wells and deposits, and where applicable, when the compensation due to the State as defined in the Petroleum Contract has been paid.

Section 22: (1) The Holder of an Exploitation Authorisation may relinquish, in whole or in part, its rights over the surface areas covered by its Authorisation, provided a one (1) year notice is given to the Minister in charge of Hydrocarbons and the Holder has fulfilled the obligations prescribed by the Petroleum Contract and by applicable regulations, particularly with regard to environmental protection and the abandonment of wells and deposits.

(2) The relinquishment shall only be effective after acceptance by the Minister in charge of Hydrocarbons.

Part III
Authorisations

Chapter I
Prospection Authorisation

Section 23: (1) A Prospection Authorisation shall apply to areas not covered by a Petroleum Contract and may be granted to a natural person or a legal entity by decision of the Minister in charge of Hydrocarbons, who prescribes its terms.

(2) The Prospection Authorisation shall confer upon its holder the non-exclusive right to carry out preliminary Prospection work within a specified area. Such Authorisation does not constitute a Hydrocarbons Mining Title and is neither assignable nor transferable.

(3) The Prospection Authorisation does not confer upon its holder any right to obtain a Hydrocarbons Mining Title or to enter into a Petroleum Contract.

(4) Notwithstanding the above, where exceptional circumstances so warrant, in particular for Special Petroleum Operations Zones, should a Petroleum Contract eventually be entered into covering all or part of the relevant area, the Prospection Authorisation may, while valid, confer upon its Holder either a preferential right on equivalent terms and conditions, or an exclusive right of limited duration to enter into a Petroleum Contract for all or part of the area.

(5) The Prospection Authorisation is granted subject to third-party rights.

(6) Where applicable, the State may also grant Prospection Authorisation for the sole purposes of collecting technical information.

Section 24: Conditions for obtaining and renewing the Prospection Authorisation are determined by regulation.

Section 25: (1) Several Prospection Authorisation may concurrently be granted for the same area.

(2) Without prejudice to the provisions of Section 23 paragraph (4) herein above, the State may also at any time grant a Hydrocarbons Mining Title or enter into a Petroleum Contract for all or part of the area which is the subject of a Prospection Authorisation, in which case the said Authorisation shall lapse ipso jure with regard to the relevant area; such lapse should not entitle the holder to any compensation whatsoever.

Chapter II
Exploration and Provisional Exploitation Authorisations

I
Exploration Authorisation

Section 26: The Exploration Authorisation, attached to a Petroleum Contract may be either a Hydrocarbons Exploration permit in the case of a Concession Contract, or an exclusive Exploration authorisation, in the case of a Production Sharing Contract.

Section 27: An Exploration Authorisation confers upon its Holder the exclusive right to carry out, at its risk and expense, all Hydrocarbons Prospection and Exploration work within the limits of the relevant area, and to an indefinite depth except as may be otherwise provided for in the Petroleum Contract.

It shall also confer upon Holder the right to dispose of its share of Hydrocarbons, which may be extracted during Exploration work and production tests, subject to prior declaration to the Minister in charge of Hydrocarbons.

Section 28: (1) The Exploration Authorisation shall be granted for an initial maximum term of three (3) years. However, where necessary such term shall be extended to five (5) years in the case of Special Petroleum Operations Zones. Such Authorisation is granted by decree. However, in the case of a Production Sharing Contract, the signature of the Contract by the parties shall constitute the grant of the Exploration Authorisation.

(2) An Exploration Authorisation shall be renewable twice for a period of two (2) years each time. The holder may file an application for the renewal of an Exploration Authorisation, according to the required procedure and in accordance with the terms and conditions for renewal determined by decree, and provided the Holder has fulfilled its obligations for the current period of validity. Such renewals are granted by regulation.

(3) Subject to the provisions of the last paragraph (5) of this Section, and of Sections 35 and 116 of this Code, the term of the Exploration Authorisation, including the term of the two (2) renewals, may not exceed seven (7) years, or nine (9) years for Special Petroleum Operations Zones.

(4) Upon each renewal, the surface area of the Exploration Authorisation shall be reduced in accordance with the terms of the Petroleum Contract.

(5) The period of validity of the Exploration Authorisation may, where necessary, be extended according to the terms and conditions of the Contract, in order to allow:

a) For the completion of Exploration wells in progress or the appraisal and delineation of a Hydrocarbons discovery of non-associated natural gas or a discovery located in a Special Petroleum Operations Zone, and

b) The search for markets in case of a discovery of non-associated natural gas.

Section 29: The Holder of an Exploration Authorisation is required to carry out the minimum Exploration work and expenditure programme specified in the Exploration Authorisation and in the Petroleum Contract, during the initial term and, where applicable, during each renewal period.

Section 30: Should the Holder of an Exploration Authorisation not fulfil the work and expenditure obligations referred to in Section 29 above within the given time-limits and in accordance with the terms of the Petroleum Contract, the State may claim from the Holder the payment of a compensation amount equal to the cost of the unfulfilled obligation, under the conditions specified in the Petroleum Contract.

Section 31: (1) The Holder of the Exploration Authorisation shall notify the Minister in charge of Hydrocarbons as soon as possible of any Hydrocarbons discovery.

(2) When such discovery leads to the presumption of the existence of a commercially exploitable deposit, the Holder of the Explorations Authorisation shall diligently carry out the work required for the appraisal and delineation of such deposit. This appraisal may involve the delineation of the field in question and/or the appraisal of nearby structure and prospects within the contract area. Upon completion of such work, the Holder shall determine whether such a discovery is commercial or not.

Section 32: (1) The Holder of the Exploration Authorisation who has furnished proof of the existence of a commercially exploitable Hydrocarbons deposits in the area covered by its Authorisation, shall be entitled to apply for the grant of Exploitation activities within a maximum period of three (03) years from the Date of the grant of the Exploitation Authorisation. Failure to take action within the time limit prescribed shall result in the cancellation of the exploitation Authorisation without the Holder having any right to claim any compensation whatsoever.

(2) The granting of an Exploitation Authorisation shall entail the cancellation of the Exploration Authorisation inside the Exploitation area, but allows said Authorisation to remain valid outside such area up until its expiration date, without amending the minimum Exploration work programme undertaken by the Holder.

Section 33: When an Exploration Authorisation is due renewal or final expiration before a decision on a properly filed application by the Holder for an extension or renewal or for an Exploitation Authorisation is made, the Holder of the Exploration Authorisation shall remain solely authorised to continue Exploration work within the limits of the area(s) covered by its application.

Section 34: Upon total or partial expiration of an Exploration Authorisation, either at the end of each period of validity or in the case of surrender or cancellation, the Holder must carry out, at its own expense, the abandonment of fields and wells as well as environmental protection operations prescribed by applicable law and regulation as well as by the Petroleum Contract. The Holder shall provide the State with all petroleum information and technical data in its possession relating to the area surrendered.

II
Provisional Exploitation Authorization

Section 35: (1) During the validity of an Exploration Authorization, the Holder may apply for the grant of a Provisional Exploitation Authorization by regulation. The grant of a Provisional Exploitation Authorisation allows the Exploration Authorisation to remain valid, but does not prolong its period of validity.

(2) The Provisional Exploitation Authorisation confers upon its Holder the right to operate productive wells on a provisional basis for a maximum period of two (2) years during which the Holder shall be required to carry out the appraisal and delineation of the relevant deposit, in accordance with the provisions of Section 28 above and the terms of the Petroleum Contract.

(3) The Provisional Exploitation Authorisation may be forfeited by the same procedure in the event of non-compliance with the provisions of Sections 29 and 30 above. Such authorisation shall lapse with the expiration of the Exploration Authorisation for the specified area for any reason whatsoever, unless an application in proper form for an Exploitation Authorisation is filed within the time limit.

(4) The application procedures and the conditions for the filing of an application for a Provisional Exploitation Authorisation, its extension to new wells and its forfeiture shall be laid down by the decree of application of this Code.

Chapter III
Exploitation Authorizations

Section 36: An Exploitation Authorization, attached to a Petroleum Contract, may be either an Exploitation concession in the case of a Concession Contract, or an exclusive Exploitation authorization in the case of a Production Sharing Contract.

Section 37: (1) The Exploitation Authorisation covers the surface projection of a commercial Hydrocarbons deposit. It confers upon its Holder the exclusive right to carry out, at its own risk and expense, all Petroleum Operations within the limits of the pertinent area and to an indefinite depth, as well as the right to dispose of all or part of the Hydrocarbons production, in accordance with the provisions of the Petroleum Contract.

(2) The granting of an Exploitation Authorisation shall under no circumstances confer ownership of the deposits; it creates a right of limited duration which is not mortgageable and which is distinct from the ownership of the surface area; the said right is assignable and transferable under the condition provided in Section 39 of this Code.

Section 38: (1) The initial term of the Exploitation Authorisation shall not exceed twenty-five (25) years for liquid Hydrocarbons and thirty-five (35) years for gaseous Hydrocarbons.

(2) The Exploitation Authorisation may be renewed once on application by the Holder for a maximum additional term of ten (10) years, according to the procedures provided in Section 41 below and pursuant to applicable legislation and regulations. To be so entitled the Holder must have fulfilled its obligations and shown evidence of the possibility of continuing commercial production of Hydrocarbons beyond the current period of validity. The conditions for such renewal may be subject to renegotiation of the terms of the Petroleum Contract.

Section 39: Only the Holder of a currently valid Exploration Authorisation may obtain an Exploitation Authorisation within the area covered by the said Exploration Authorisation.

Section 40: The Holder of an Exploration Authorisation, who provides proof of the existence of a commercially exploitable Hydrocarbons deposit within its contract area, may proceed with the exploitation of the deposit in accordance with the terms and conditions laid down by this Code and its decree of application.

Section 41: The Exploitation Authorisation is granted by decree, which shall specify its duration and the delineation of the Exploitation area.

Section 42: The extent of the Exploitation area is limited to the surface area determined by vertical lines based on the area defined on the surface, unless otherwise provided by the Petroleum Contract. Moreover, the Exploitation area shall be delineated in such a way as to include the surface area of the deposit over which the Holder holds rights.

Section 43: Except in the case of force majeur, should the work on the deposit covered by the Exploitation Authorisation not be diligently carried out, or should the Exploitation be suspended for more than six (6) months, the forfeiture of the Exploitation Authorisation may be ordered by regulation, after a three (3) month notice of non-compliance has been served.

Section 44: (1) Before the expiration of the exploitation Authorisation, either at the end of its normal term or in the event of surrender or forfeiture, the Holder shall, unless otherwise decided by the Minister in charge of Hydrocarbons, carry out at its own expense operations for the abandonment of the deposit as laid down by applicable legislation and regulations as well as by the Petroleum Contract.

(2) Notwithstanding the provisions of the preceding paragraph, and should the State wish to carry on with the Exploitation operations, the facilities, materials and lands related to the Exploitation Authorisation which are required to carry on the Exploitation shall, at the request of the Minister in charge of Hydrocarbons, be transferred to the State, without compensation to the Holder, subject to the provisions of Section 12p herein above.

(3) Incorporation into the private land of the State of the portions of the national territory relating to the said transfer shall be done by regulation. The assignment of leases on private land belonging to individuals and deemed necessary in order for the State to continue Exploitation, shall be done by decree.

Chapter IV
Domestic Transportation Authorisation

Section 45: (1) A Domestic Transportation Authorisation shall be granted by decree upon an application by a Holder during the term of a valid Petroleum Contract, under the conditions set out in this Part.