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NGU & CO LAW FIRM ADVOCATES OF THE CAMEROONIAN BAR / OAPI PATENT AND TRADEMARK ATTORNEYS
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
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,
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 operators 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 victims 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 Cameroons
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.
I
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 Holders
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.
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