# Official Journal C 448/12 D

| | ISSN 1977-091X |
| --- | --- |
| Official Journal
  of the European Union | C 448 |
| | |
| English edition | Information and Notices | Volume 6112 December 2018 |

ISSN 1977-091X

Official Journal

of the European Union

C 448

English edition

Information and Notices

Volume 6112 December 2018

---

| Contents | page |
| --- | --- |
| | IV   Notices |
| | NOTICES FROM MEMBER STATES |
| 2018/C 448/01 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 1 |
| 2018/C 448/02 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 13 |
| 2018/C 448/03 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 24 |
| 2018/C 448/04 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 35 |
| 2018/C 448/05 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 47 |
| 2018/C 448/06 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 58 |
| 2018/C 448/07 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 69 |
| 2018/C 448/08 | Communication from the Government of the Republic of Poland concerning Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 81 |

Contents

page

IV   Notices

NOTICES FROM MEMBER STATES

2018/C 448/01

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

1

2018/C 448/02

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

13

2018/C 448/03

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

24

2018/C 448/04

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

35

2018/C 448/05

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

47

2018/C 448/06

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

58

2018/C 448/07

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

69

2018/C 448/08

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

81

---

| EN | |
| --- | --- |

EN

---

IV Notices

NOTICES FROM MEMBER STATES

| 12.12.2018 | EN | Official Journal of the European Union | C 448/1 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/1

---

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

(2018/C 448/01)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Law Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Braniewo-Miłakowo’ area, parts of concession blocks Nos 52, 72 and 73.

2.   Area within which the activities are to be conducted

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

| No | X | Y |
| --- | --- | --- |
| 1 | 729 538,36 | 564 733,40 |
| 2 | 709 963,78 | 565 011,05 |
| 3 | 710 223,32 | 581 294,37 |
| 4 | 700 954,70 | 581 458,40 |
| 5 | 682 448,80 | 581 910,30 |
| 6 | 682 188,89 | 565 550,66 |
| 7 | 701 857,78 | 565 272,71 |
| 8 | 701 752,91 | 555 392,38 |
| 9 | 707 980,87 | 552 672,76 |
| 10 | 723 281,12 | 553 038,73 |
| 11 | 731 168,11 | 553 059,46 |
| between points (11) and (1), the concession boundary coincides with the state border |

No

X

Y

1

729 538,36

564 733,40

2

709 963,78

565 011,05

3

710 223,32

581 294,37

4

700 954,70

581 458,40

5

682 448,80

581 910,30

6

682 188,89

565 550,66

7

701 857,78

565 272,71

8

701 752,91

555 392,38

9

707 980,87

552 672,76

10

723 281,12

553 038,73

11

731 168,11

553 059,46

between points (11) and (1), the concession boundary coincides with the state border

The surface area of the vertical projection of the area covered by this bidding procedure is 787,86 km2.

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

| — | municipalities: Braniewo, Płoskinia, Wilczęta, Godkowo, Lubomino and Świątki, |
| --- | --- |

—

municipalities: Braniewo, Płoskinia, Wilczęta, Godkowo, Lubomino and Świątki,

| — | urban municipalities: Pieniężno, Miłakowo and Orneta, and |
| --- | --- |

—

urban municipalities: Pieniężno, Miłakowo and Orneta, and

| — | the town of Braniewo in Warmińsko-Mazurskie Province. |
| --- | --- |

—

the town of Braniewo in Warmińsko-Mazurskie Province.

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

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

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12.00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(1) of the Geological and Mining Law Act, independently, or as the operator if several entities are applying jointly for the concession.

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of the Polish geological conditions and which may be applied in those conditions); |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of the Polish geological conditions and which may be applied in those conditions);

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed; |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

5.   Minimum scope of geological information

| Concession data | name of area: Braniewo-Miłakowo
  location: onshore; concession blocks 52, 72 and 73 |
| --- | --- |
| Type of deposit | conventional and unconventional for oil |
| Structural levels | Cenozoic
  Permian-Mesozoic
  Lower Paleozoic
  Precambrian |
| Petroleum systems | I — conventional and unconventional Cambrian (tight oil)
  II — unconventional Lower Paleozoic (tight oil, shale oil) |
| Source rocks | I, II — Cambrian, Ordovician and Silurian mudstones and claystones |
| Reservoir rocks | I — Middle Cambrian sandstones
  II — limestones and marl as well as mudstones and claystones of the Ordovician and the Silurian |
| Seal rocks | I, II — Lower Paleozoic mudstones and claystones and Zechstein evaporitic rocks |
| Thickness of overburden | I, II — 1 700 -2 500  m |
| Trap type | I — structural, stratigraphic, lithological
  II — unconventional (tight, shale) |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | No deposits in Polish territory, numerous hydrocarbon deposits in Kaliningrad Oblast: in Middle Cambrian formations (Slavskoye, Slavinskoye, Gayevskoye, Yagodnoye, Krasnoborskoye, Krasnoborskoye-W, Deyminskoye, Krasnoborskoye-N, Malinovskoye, Ushakovskoye, Isakovskoye, Veselovskoye, Ladushkinskoye) and Ordovician and Silurian formations (Gusevskoye). |
| Seismic surveys completed (rightholder) | 1973 — PGSS PAN] — one 2D profile survey (State Treasury)
  1978 — Morąg-Olsztyn-Braniewo — four 2D profile surveys (State Treasury)
  1996 — Orneta — fourteen 2D profile surveys (Frontier Poland Exploration and Producing Company)
  2009 — Braniewo S — nine 2D profile surveys (State Treasury)
  one profile — PolandSPAN (ION) |
| Wells (MD) | benchmark wells:
  Henrykowo 1 (2 611,1  m)
  Henrykowo 5 (2 675,0  m)
  Orneta 1 (2 577,0  m)
  Rogity 1 (2 788,6  m)
  offset wells:
  Głębock 1 (2 800,0  m)
  Gładysze 1 (2 784,0  m)
  Młynary 3 (3 157,5  m)
  Pasłęk IG 1 (2 858,4  m) |

Concession data

name of area: Braniewo-Miłakowo

location: onshore; concession blocks 52, 72 and 73

Type of deposit

conventional and unconventional for oil

Structural levels

Cenozoic

Permian-Mesozoic

Lower Paleozoic

Precambrian

Petroleum systems

I — conventional and unconventional Cambrian (tight oil)

II — unconventional Lower Paleozoic (tight oil, shale oil)

Source rocks

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

Reservoir rocks

I — Middle Cambrian sandstones

II — limestones and marl as well as mudstones and claystones of the Ordovician and the Silurian

Seal rocks

I, II — Lower Paleozoic mudstones and claystones and Zechstein evaporitic rocks

Thickness of overburden

I, II — 1 700 -2 500  m

Trap type

I — structural, stratigraphic, lithological

II — unconventional (tight, shale)

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

No deposits in Polish territory, numerous hydrocarbon deposits in Kaliningrad Oblast: in Middle Cambrian formations (Slavskoye, Slavinskoye, Gayevskoye, Yagodnoye, Krasnoborskoye, Krasnoborskoye-W, Deyminskoye, Krasnoborskoye-N, Malinovskoye, Ushakovskoye, Isakovskoye, Veselovskoye, Ladushkinskoye) and Ordovician and Silurian formations (Gusevskoye).

Seismic surveys completed (rightholder)

1973 — PGSS PAN] — one 2D profile survey (State Treasury)

1978 — Morąg-Olsztyn-Braniewo — four 2D profile surveys (State Treasury)

1996 — Orneta — fourteen 2D profile surveys (Frontier Poland Exploration and Producing Company)

2009 — Braniewo S — nine 2D profile surveys (State Treasury)

one profile — PolandSPAN (ION)

Wells (MD)

benchmark wells:

Henrykowo 1 (2 611,1  m)

Henrykowo 5 (2 675,0  m)

Orneta 1 (2 577,0  m)

Rogity 1 (2 788,6  m)

offset wells:

Głębock 1 (2 800,0  m)

Gładysze 1 (2 784,0  m)

Młynary 3 (3 157,5  m)

Pasłęk IG 1 (2 858,4  m)

6.   Commencement date of activities

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

7.   Minimum scope of geological works, including geological operations, or mining operations

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

Phase I (18 months): analysing and interpreting archival geological data

Phase II (24 months): drilling one borehole to a maximum depth of 3 500 m, with mandatory coring of prospective intervals

Phase III (12 months): analysing the geological data obtained

8.   Period for which the concession is to be granted

The concession period is 30 years, including:

| — | a prospection and exploration phase of 4,5 years’ duration, starting from the date on which the concession is granted, |
| --- | --- |

—

a prospection and exploration phase of 4,5 years’ duration, starting from the date on which the concession is granted,

| — | an extraction phase of 25,5 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 25,5 years’ duration, starting from the date on which an investment decision is obtained.

9.   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

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

10.   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

11.   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Braniewo-Miłakowo’ area during the five-year base period is PLN 172 501,95 (in words: one hundred and seventy-two thousand, five hundred and one zlotys, ninety-five grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

12.   Information concerning requirements to be met by bids and documents required from bidders

| 1. | Bids should specify:






  (1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

(1)

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

| (2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

(2)

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

| (3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

(3)

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

| (4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

(4)

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

| (5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

(5)

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

| (6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

(6)

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

| (7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

(7)

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

| (8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

(8)

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

| (9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

(9)

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

| (10) | the scope of the geological information available to the bidder; |
| --- | --- |

(10)

the scope of the geological information available to the bidder;

| (11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

(11)

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

| (12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

(12)

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

| (13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

(13)

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

| (14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

(14)

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

| (15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

(15)

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

| (16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

(16)

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

| (17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

(17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  (1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

(1)

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

| (2) | proof that a deposit has been lodged; |
| --- | --- |

(2)

proof that a deposit has been lodged;

| (3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

(3)

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

| (4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

(4)

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

| (5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

(5)

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

| (6) | two copies of the geological operations project file. |
| --- | --- |

(6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

13.   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1.   Bid evaluation committee

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

IV.2.   Further clarifications:

Within 14 days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within 14 days from the receipt of the request, the concession authority will publish the explanations in the Public Information Bulletin (Biuletyn Informacji Publicznej), on the page of the administrative office subordinate to that authority.

IV.3   Additional information

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

| Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department) |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449; Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449; Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of: Braniewo, Płoskinia, Wilczęta, Godkowo, Lubomino and Świątki; the urban municipalities of: Pieniężno, Miłakowo and Orneta; and the town of Braniewo in Warmińsko-Mazurskie Province, the boundaries of which are defined by lines joining points (1) to (11) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 729 538,36 | 564 733,40 |
| 2 | 709 963,78 | 565 011,05 |
| 3 | 710 223,32 | 581 294,37 |
| 4 | 700 954,70 | 581 458,40 |
| 5 | 682 448,80 | 581 910,30 |
| 6 | 682 188,89 | 565 550,66 |
| 7 | 701 857,78 | 565 272,71 |
| 8 | 701 752,91 | 555 392,38 |
| 9 | 707 980,87 | 552 672,76 |
| 10 | 723 281,12 | 553 038,73 |
| 11 | 731 168,11 | 553 059,46 |
| between points (1) and (11), the concession boundary coincides with the state border |

1.

No

X

Y

1

729 538,36

564 733,40

2

709 963,78

565 011,05

3

710 223,32

581 294,37

4

700 954,70

581 458,40

5

682 448,80

581 910,30

6

682 188,89

565 550,66

7

701 857,78

565 272,71

8

701 752,91

555 392,38

9

707 980,87

552 672,76

10

723 281,12

553 038,73

11

731 168,11

553 059,46

between points (1) and (11), the concession boundary coincides with the state border

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 3 500 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Braniewo-Miłakowo’ area within one year from the date of the Agreement being concluded.

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






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

3.

(1)

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

| (2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Ordovician and Silurian formations. |
| --- | --- |

(2)

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

| 4. | The surface area of the vertical projection of the area described above is 787,86 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Law Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended), and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

| 2. | The mining usufruct rights shall be established for a period of 30 years, including 4,5 years for the prospection and exploration phase and 25,5 years for the extraction phase, subject to Sections 8(2) and 10. |
| --- | --- |

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Braniewo-Miłakowo” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send the State Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination will be invalid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the State Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  (1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND; |
| --- | --- | --- |

1.

(1)

State Treasury:

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

| (2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

(2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once 14 days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole or in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

Amendments to the Agreement shall be made in writing, failing which they will be invalid.

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---

| 12.12.2018 | EN | Official Journal of the European Union | C 448/13 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/13

---

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

(2018/C 448/02)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Law Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Bytów’ area, parts of concession blocks Nos 47, 48, 67, and 68.

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

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

| No | X | Y |
| --- | --- | --- |
| 1 | 715 916,10 | 395 018,18 |
| 2 | 715 477,11 | 420 841,77 |
| 3 | 710 216,13 | 420 752,34 |
| 4 | 709 996,53 | 434 739,13 |
| 5 | 709 994,91 | 434 842,34 |
| 6 | 682 184,52 | 434 676,55 |
| 7 | 682 361,03 | 425 652,51 |

No

X

Y

1

715 916,10

395 018,18

2

715 477,11

420 841,77

3

710 216,13

420 752,34

4

709 996,53

434 739,13

5

709 994,91

434 842,34

6

682 184,52

434 676,55

7

682 361,03

425 652,51

The surface area of the vertical projection of the area covered by this bidding procedure is 732,86 km2.

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

| — | municipalities: Czarna Dąbrówka, Parchowo, Studzienice, Sierakowice, Sulęczyno, Stężyca, Chmielno, Dziemiany, Lipusz, Kościerzyna, Stara Kiszewa and Dębnica Kaszubska; |
| --- | --- |

—

municipalities: Czarna Dąbrówka, Parchowo, Studzienice, Sierakowice, Sulęczyno, Stężyca, Chmielno, Dziemiany, Lipusz, Kościerzyna, Stara Kiszewa and Dębnica Kaszubska;

| — | urban municipality: Bytów; and |
| --- | --- |

—

urban municipality: Bytów; and

| — | the town of Kościerzyna in Pomorskie Province. |
| --- | --- |

—

the town of Kościerzyna in Pomorskie Province.

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

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

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12:00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(1) of the Geological and Mining Law Act, independently, or as the operator if several entities are applying jointly for the concession.

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of the Polish geological conditions and which may be applied in those conditions); |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of the Polish geological conditions and which may be applied in those conditions);

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed; |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

(5)   Minimum scope of geological information

| Concession data | name of area: Bytów
  location: onshore; concession blocks 47, 48, 67 and 68 |
| --- | --- |
| Type of deposit | unconventional deposits of natural gas in Lower Paleozoic shales and conventional deposits of natural gas in Lower Paleozoic formations |
| Structural levels | Cenozoic
  Permian-Mesozoic
  Lower Paleozoic
  Precambrian |
| Petroleum systems | I — unconventional
  II — conventional |
| Source rocks | I — Silurian and Ordovician mudstones and claystones
  II — Cambrian mudstone-clayey intrusions
  and overlying Silurian and Ordovician mudstones and claystones |
| Reservoir rocks | I — Silurian and Ordovician mudstones and claystones
  II — Lower and Middle Cambrian sandstones |
| Seal rocks | I — Upper Silurian rocks (Ludlow and Pridoli) and Zechstein evaporites
  II — Silurian and Ordovician mudstones and claystones and Zechstein evaporites |
| Thickness of overburden | I — from approx. 3 700  m (Bytów IG 1) to approx. 4 000  m (Kościerzyna IG 1, Gapowo B-1)
  II — approx. 4 250  m (Gapowo B-1) |
| Trap type | I — unconventional
  II — structural, stratigraphic |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | I — no shale gas deposits
  II — no natural gas deposits, but deposits which have been identified in this interval include:
  ‘Żarnowiec W’ (O) — documented in 1990; production in 2016: 60 tonnes; reserves and resources: 17 750 tonnes (industrial: 3 780 tonnes)
  ‘Dębki-Żarnowiec’ (O, two separate deposits since 1995, for which aggregate data are given here) — production in 2016: 630 tonnes; reserves and resources: 50 320 tonnes (industrial: 9 700 tonnes)
  ‘Białogóra E’ (O), — documented in 1995; production in 2016: nil; reserves and resources: nil (industrial: 380 tonnes) |
| Seismic surveys completed (rightholder) | 2012 — seven 2D survey profiles (Indiana Investments Sp. z o. o.)
  one partial profile survey — PolandSPAN (ION) |
| Wells (MD) | benchmark wells:
  Bytów IG 1 (2 569,70  m);
  Gapowo B-1/1 A (4 299,79  m)
  offset wells:
  Kościerzyna IG 1 (5 202,00  m);
  Lębork IG 1 (3 310,00  m) |

Concession data

name of area: Bytów

location: onshore; concession blocks 47, 48, 67 and 68

Type of deposit

unconventional deposits of natural gas in Lower Paleozoic shales and conventional deposits of natural gas in Lower Paleozoic formations

Structural levels

Cenozoic

Permian-Mesozoic

Lower Paleozoic

Precambrian

Petroleum systems

I — unconventional

II — conventional

Source rocks

I — Silurian and Ordovician mudstones and claystones

II — Cambrian mudstone-clayey intrusions

and overlying Silurian and Ordovician mudstones and claystones

Reservoir rocks

I — Silurian and Ordovician mudstones and claystones

II — Lower and Middle Cambrian sandstones

Seal rocks

I — Upper Silurian rocks (Ludlow and Pridoli) and Zechstein evaporites

II — Silurian and Ordovician mudstones and claystones and Zechstein evaporites

Thickness of overburden

I — from approx. 3 700  m (Bytów IG 1) to approx. 4 000  m (Kościerzyna IG 1, Gapowo B-1)

II — approx. 4 250  m (Gapowo B-1)

Trap type

I — unconventional

II — structural, stratigraphic

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

I — no shale gas deposits

II — no natural gas deposits, but deposits which have been identified in this interval include:

‘Żarnowiec W’ (O) — documented in 1990; production in 2016: 60 tonnes; reserves and resources: 17 750 tonnes (industrial: 3 780 tonnes)

‘Dębki-Żarnowiec’ (O, two separate deposits since 1995, for which aggregate data are given here) — production in 2016: 630 tonnes; reserves and resources: 50 320 tonnes (industrial: 9 700 tonnes)

‘Białogóra E’ (O), — documented in 1995; production in 2016: nil; reserves and resources: nil (industrial: 380 tonnes)

Seismic surveys completed (rightholder)

2012 — seven 2D survey profiles (Indiana Investments Sp. z o. o.)

one partial profile survey — PolandSPAN (ION)

Wells (MD)

benchmark wells:

Bytów IG 1 (2 569,70  m);

Gapowo B-1/1 A (4 299,79  m)

offset wells:

Kościerzyna IG 1 (5 202,00  m);

Lębork IG 1 (3 310,00  m)

(6)   Commencement date of activities

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

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

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

Phase I (12 months): analysing and interpreting archival geological data

Phase II (12 months): geophysical surveys — 2D seismic test (100 km excitation line) or 3D seismic test (50 km2 excitation area)

Phase III (24 months): drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

Phase IV (12 months): analysing the geological data obtained

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

The concession period is 30 years, including:

| — | a prospection and exploration phase of 5 years’ duration, starting from the date on which the concession is granted, |
| --- | --- |

—

a prospection and exploration phase of 5 years’ duration, starting from the date on which the concession is granted,

| — | an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained.

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

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

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

The model agreement is attached as an annex hereto.

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

The minimum amount of the fee for establishing mining usufruct rights for the ‘Bytów’ area during the five-year base period is PLN 160 459,70 (in words: one hundred and sixty thousand, four hundred and fifty-nine zlotys, seventy grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

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

| 1. | Bids should specify:






  1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

1)

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

| 2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

2)

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

| 3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

3)

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

| 4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

4)

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

| 5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

5)

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

| 6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

6)

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

| 7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

7)

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

| 8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

8)

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

| 9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

9)

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

| 10) | the scope of the geological information available to the bidder; |
| --- | --- |

10)

the scope of the geological information available to the bidder;

| 11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

11)

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

| 12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

12)

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

| 13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

13)

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

| 14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

14)

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

| 15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

15)

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

| 16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

16)

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

| 17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

1)

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

| 2) | proof that a deposit has been lodged; |
| --- | --- |

2)

proof that a deposit has been lodged;

| 3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

3)

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

| 4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

4)

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

| 5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

5)

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

| 6) | two copies of the geological operations project file. |
| --- | --- |

6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

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

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV. 1)   Bid evaluation committee

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

IV. 2)   Further clarifications

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

IV. 3)   Additional information

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

| Departament Geologii i Koncesji Geologicznych [Geology and Geological Concessions Department] |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449; Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449; Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of: Czarna Dąbrówka, Parchowo, Studzienice, Sierakowice, Sulęczyno, Stężyca, Chmielno, Dziemiany, Lipusz, Kościerzyna, Stara Kiszewa and Dębnica Kaszubska; the urban municipality of: Bytów; and the town of: Kościerzyna in Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (7) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 715 916,10 | 395 018,18 |
| 2 | 715 477,11 | 420 841,77 |
| 3 | 710 216,13 | 420 752,34 |
| 4 | 709 996,53 | 434 739,13 |
| 5 | 709 994,91 | 434 842,34 |
| 6 | 682 184,52 | 434 676,55 |
| 7 | 682 361,03 | 425 652,51 |

1.

No

X

Y

1

715 916,10

395 018,18

2

715 477,11

420 841,77

3

710 216,13

420 752,34

4

709 996,53

434 739,13

5

709 994,91

434 842,34

6

682 184,52

434 676,55

7

682 361,03

425 652,51

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

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






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

3.

1)

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

| 2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Ordovician and Silurian formations. |
| --- | --- |

2)

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

| 4. | The surface area of the vertical projection of the area described above is 732,86 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Law Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended), and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

| 2. | The mining usufruct rights shall be established for a period of 30 years, including 5 years for the prospection and exploration phase and 25 years for the extraction phase, subject to Sections 8(2) and 10. |
| --- | --- |

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Bytów” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send the State Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination will be invalid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the State Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND; |
| --- | --- | --- |

1.

1)

State Treasury:

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

| 2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once 14 days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole or in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

Amendments to the Agreement shall be made in writing, failing which they will be invalid.

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---

| 12.12.2018 | EN | Official Journal of the European Union | C 448/24 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/24

---

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

(2018/C 448/03)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Law Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Chełmno’ area, parts of concession blocks Nos 129 and 149.

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

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

| No | X | Y |
| --- | --- | --- |
| 1 | 615 522,00 | 457 159,00 |
| 2 | 610 550,09 | 464 193,88 |
| 3 | 587 677,51 | 449 006,78 |
| 4 | 593 202,09 | 441 301,47 |
| 5 | 599 549,00 | 445 791,00 |

No

X

Y

1

615 522,00

457 159,00

2

610 550,09

464 193,88

3

587 677,51

449 006,78

4

593 202,09

441 301,47

5

599 549,00

445 791,00

The surface area of the vertical projection of the area covered by this bidding procedure is 248,22 km2.

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

| — | municipalities: Dąbrowa Chełmińska, Dobrcz, Osielsko, Chełmno, Kijewo Królewskie, Unisław and Pruszcz; |
| --- | --- |

—

municipalities: Dąbrowa Chełmińska, Dobrcz, Osielsko, Chełmno, Kijewo Królewskie, Unisław and Pruszcz;

| — | urban municipality: Świecie; and |
| --- | --- |

—

urban municipality: Świecie; and

| — | towns/cities: Chełmno and Bydgoszcz, in Kujawsko-Pomorskie Province. |
| --- | --- |

—

towns/cities: Chełmno and Bydgoszcz, in Kujawsko-Pomorskie Province.

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

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

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12:00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(1) of the Geological and Mining Law Act, independently, or as the operator if several entities are applying jointly for the concession.

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be used in those conditions); |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be used in those conditions);

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed; |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

(5)   Minimum scope of geological information

| Concession data | name of area: Chełmno
  location: onshore; concession blocks 129 and 149 |
| --- | --- |
| Type of deposit | conventional natural gas and oil deposits |
| Structural levels | Cenozoic
  Permian-Mesozoic
  Paleozoic (Variscan) |
| Petroleum systems | I — Ordovician-Silurian-Devonian (and/or Carboniferous)
  II — Carboniferous-Permian
  III — Permian (Main Dolomite) |
| Source rocks | I — Ordovician, Silurian, Devonian — claystones and carbonate formations
  II — carboniferous (and/or an older substrate) — claystones, interlayering of carbonate rocks enriched with organic matter
  III — interlayering of organic matter-rich rocks in Main Dolomite |
| Reservoir rocks | I — Devonian (and/or Carboniferous) — sandstones
  II — Carboniferous and Rotliegend sandstones
  III — Main Dolomite carbonate formations |
| Seal rocks | I — Carboniferous and Zechstein evaporites
  II — Zechstein evaporites
  III — Zechstein evaporites |
| Thickness of overburden | I > 3 900  m
  II > 3 800  m
  III > 3 600  m |
| Trap type | I, II, III — stratigraphic, structural |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | Brzozówka (O): cumulative production (12 years) 36 396 tonnes oil, 9 797 000  m3 natural gas; production in 2016: none; deposit deleted from the register of reserves; original reserves and resources in 1991: 26 860 tonnes oil and 8 220 000  m3 natural gas
  Wierzchowo (NG): cumulative production 514 020 000  m3 (42 years); production in 2016: none; balance sheet reserves and resources in 2016: 10 780 000  m3 natural gas; industrial resources in 2016: 10 690 000  m3 natural gas |
| Seismic surveys completed (rightholder) | 1981-1983 — Unisław-Toruń — 10 profiles (State Treasury)
  1981-1982 — Bydgoszcz — 9 profiles (State Treasury)
  1984 — Rypin-Grudziądz — 1 profile (State Treasury)
  2000-2001 — Pomerania — 3 profiles (Apache) |
| Benchmark wells (MD) | Polskie Łąki PIG 1 (4 427,00  m)
  Unisław IG 1 (5 355,00  m)
  Unisław IG 2 (5 120,00  m)
  Unisław 2 (4 985,00  m)
  Unisław 4 (4 790,00  m)
  Wałdowo Królewskie 1 (5 433,00  m)
  Wudzyń 1 (4 198,00  m) |

Concession data

name of area: Chełmno

location: onshore; concession blocks 129 and 149

Type of deposit

conventional natural gas and oil deposits

Structural levels

Cenozoic

Permian-Mesozoic

Paleozoic (Variscan)

Petroleum systems

I — Ordovician-Silurian-Devonian (and/or Carboniferous)

II — Carboniferous-Permian

III — Permian (Main Dolomite)

Source rocks

I — Ordovician, Silurian, Devonian — claystones and carbonate formations

II — carboniferous (and/or an older substrate) — claystones, interlayering of carbonate rocks enriched with organic matter

III — interlayering of organic matter-rich rocks in Main Dolomite

Reservoir rocks

I — Devonian (and/or Carboniferous) — sandstones

II — Carboniferous and Rotliegend sandstones

III — Main Dolomite carbonate formations

Seal rocks

I — Carboniferous and Zechstein evaporites

II — Zechstein evaporites

III — Zechstein evaporites

Thickness of overburden

I > 3 900  m

II > 3 800  m

III > 3 600  m

Trap type

I, II, III — stratigraphic, structural

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

Brzozówka (O): cumulative production (12 years) 36 396 tonnes oil, 9 797 000  m3 natural gas; production in 2016: none; deposit deleted from the register of reserves; original reserves and resources in 1991: 26 860 tonnes oil and 8 220 000  m3 natural gas

Wierzchowo (NG): cumulative production 514 020 000  m3 (42 years); production in 2016: none; balance sheet reserves and resources in 2016: 10 780 000  m3 natural gas; industrial resources in 2016: 10 690 000  m3 natural gas

Seismic surveys completed (rightholder)

1981-1983 — Unisław-Toruń — 10 profiles (State Treasury)

1981-1982 — Bydgoszcz — 9 profiles (State Treasury)

1984 — Rypin-Grudziądz — 1 profile (State Treasury)

2000-2001 — Pomerania — 3 profiles (Apache)

Benchmark wells (MD)

Polskie Łąki PIG 1 (4 427,00  m)

Unisław IG 1 (5 355,00  m)

Unisław IG 2 (5 120,00  m)

Unisław 2 (4 985,00  m)

Unisław 4 (4 790,00  m)

Wałdowo Królewskie 1 (5 433,00  m)

Wudzyń 1 (4 198,00  m)

(6)   Commencement date of activities

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

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

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

Stage I (12 months): analysing and interpreting archival geological data

Stage II (12 months): geophysical surveys — 2D seismic test (50 km excitation line) or 3D seismic test (25 km2 excitation area)

Stage III (24 months): drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

Stage IV (12 months): analysing the geological data obtained.

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

The concession period is 30 years, including:

| — | a prospection and exploration phase of five years’ duration, starting from the date on which the concession is granted; |
| --- | --- |

—

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

| — | an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained.

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

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

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

The model agreement is attached as an annex hereto.

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

The minimum amount of the fee for establishing mining usufruct rights for the ‘Chełmno’ area during the five-year base period is PLN 54 347,77 (in words: fifty-four thousand, three hundred and forty-seven zlotys, seventy-seven grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

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

| 1. | Bids should specify:






  1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

1)

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

| 2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

2)

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

| 3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

3)

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

| 4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

4)

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

| 5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

5)

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

| 6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

6)

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

| 7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

7)

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

| 8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

8)

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

| 9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

9)

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

| 10) | the scope of the geological information available to the bidder; |
| --- | --- |

10)

the scope of the geological information available to the bidder;

| 11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

11)

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

| 12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

12)

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

| 13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

13)

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

| 14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

14)

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

| 15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

15)

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

| 16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

16)

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

| 17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

1)

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

| 2) | proof that a deposit has been lodged; |
| --- | --- |

2)

proof that a deposit has been lodged;

| 3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

3)

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

| 4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

4)

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

| 5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

5)

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

| 6) | two copies of the geological operations project file. |
| --- | --- |

6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

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

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1)   Bid evaluation committee

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

IV.2)   Further clarifications

Within 14 days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within 14 days from the receipt of the request, the concession authority will publish the explanations in the Public Information Bulletin (Biuletyn Informacji Publicznej), on the page of the administrative office subordinate to that authority.

IV.3)   Further information

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

| Departament Geologii i Koncesji Geologicznych [Geology and Geological Concessions Department] |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449 |
| Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449

Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of Dąbrowa Chełmińska, Dobrcz, Osielsko, Chełmno, Kijewo Królewskie, Unisław, Pruszcz and Świecie and the towns of Chełmno and Bydgoszcz in Kujawsko-Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (5) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 615 522,00 | 457 159,00 |
| 2 | 610 550,09 | 464 193,88 |
| 3 | 587 677,51 | 449 006,78 |
| 4 | 593 202,09 | 441 301,47 |
| 5 | 599 549,00 | 445 791,00 |

1.

No

X

Y

1

615 522,00

457 159,00

2

610 550,09

464 193,88

3

587 677,51

449 006,78

4

593 202,09

441 301,47

5

599 549,00

445 791,00

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

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






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

3.

1)

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

| 2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Devonian, Carboniferous and Permian formations. |
| --- | --- |

2)

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

| 4. | The surface area of the vertical projection of the area described above is 248,22 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Law Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

| 2. | The mining usufruct rights shall be established for a period of 30 years, including 5 years for the prospection and exploration phase and 25 years for the extraction phase, subject to Sections 8(2) and 10. |
| --- | --- |

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Chełmno” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send the State Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination shall not be valid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the State Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND; |
| --- | --- | --- |

1.

1)

State Treasury:

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

| 2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole or in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

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

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---

| 12.12.2018 | EN | Official Journal of the European Union | C 448/35 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/35

---

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

(2018/C 448/04)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Law Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Chodzież’ area, parts of concession blocks Nos 166 and 167.

2.   Area within which the activities are to be conducted

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

| No | X | Y |
| --- | --- | --- |
| 1 | 553 208,82 | 391 696,38 |
| 2 | 543 811,58 | 398 404,58 |
| 3 | 544 249,21 | 376 171,46 |
| 4 | 544 548,71 | 364 927,26 |
| 5 | 553 809,82 | 365 184,38 |
| 6 | 554 864,44 | 331 642,37 |
| 7 | 573 431,06 | 332 289,06 |
| 8 | 572 875,62 | 349 057,65 |
| 9 | 572 026,54 | 378 791,78 |
| 10 | 563 112,93 | 365 568,76 |
| 11 | 562 674,12 | 382 371,14 |
| 12 | 553 408,12 | 382 145,42 |

No

X

Y

1

553 208,82

391 696,38

2

543 811,58

398 404,58

3

544 249,21

376 171,46

4

544 548,71

364 927,26

5

553 809,82

365 184,38

6

554 864,44

331 642,37

7

573 431,06

332 289,06

8

572 875,62

349 057,65

9

572 026,54

378 791,78

10

563 112,93

365 568,76

11

562 674,12

382 371,14

12

553 408,12

382 145,42

The surface area of the vertical projection of the area covered by this bidding procedure is 1 119,08 km2.

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

| — | municipalities: Budzyń, Chodzież, Czarnków, Lubasz, Połajewo, Ryczywół, Damasławek, Mieścisko and Wągrowiec, |
| --- | --- |

—

municipalities: Budzyń, Chodzież, Czarnków, Lubasz, Połajewo, Ryczywół, Damasławek, Mieścisko and Wągrowiec,

| — | urban municipalities: Margonin, Szamocin, Trzcianka, Rogoźno, Ujście and Gołańcz, |
| --- | --- |

—

urban municipalities: Margonin, Szamocin, Trzcianka, Rogoźno, Ujście and Gołańcz,

| — | towns: Czarnków, Chodzież and Wągrowiec, in Wielkopolskie Province, and |
| --- | --- |

—

towns: Czarnków, Chodzież and Wągrowiec, in Wielkopolskie Province, and

| — | in the urban municipality of Janowiec Wielkopolski in Kujawsko-Pomorskie Province. |
| --- | --- |

—

in the urban municipality of Janowiec Wielkopolski in Kujawsko-Pomorskie Province.

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

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

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12.00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(1) of the Geological and Mining Law Act, independently, or as the operator if several entities are applying jointly for the concession.

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be used in those conditions); |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be used in those conditions);

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed; |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

5.   Minimum scope of geological information

| Concession data | name of area: Chodzież
  location: onshore; concession blocks 166 and 167 |
| --- | --- |
| Type of deposit | conventional and unconventional for natural gas |
| Structural levels | Cenozoic
  Zechstein — Mesozoic
  Carboniferous — Rotliegend |
| Petroleum systems | I — conventional in Rotliegend
  II — unconventional in Rotliegend |
| Source rocks | I, II — Lower Carboniferous mudstones and claystones |
| Reservoir rocks | I, II — Rotliegend sandstones |
| Seal rocks | I, II — Zechstein evaporites |
| Thickness of overburden | I — 4 700 -5 000  m
  II — 5 000 -5 400  m |
| Trap type | I — structural, stratigraphic
  II — unconventional |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | I — no deposits close to the area covered by the bidding procedure; the nearest deposits are:






  — | about 39 km to the S., exploited deposit at Młodasko (NG 4709), documented in 1985, |

Concession data

name of area: Chodzież

location: onshore; concession blocks 166 and 167

Type of deposit

conventional and unconventional for natural gas

Structural levels

Cenozoic

Zechstein — Mesozoic

Carboniferous — Rotliegend

Petroleum systems

I — conventional in Rotliegend

II — unconventional in Rotliegend

Source rocks

I, II — Lower Carboniferous mudstones and claystones

Reservoir rocks

I, II — Rotliegend sandstones

Seal rocks

I, II — Zechstein evaporites

Thickness of overburden

I — 4 700 -5 000  m

II — 5 000 -5 400  m

Trap type

I — structural, stratigraphic

II — unconventional

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

I — no deposits close to the area covered by the bidding procedure; the nearest deposits are:

—

about 39 km to the S., exploited deposit at Młodasko (NG 4709), documented in 1985,

| — | about 43 km to the S., exploited deposit at Jankowice (NG 4708), documented in 1985, |
| --- | --- |

—

about 43 km to the S., exploited deposit at Jankowice (NG 4708), documented in 1985,

| — | about 50 km to the S., Sędziny deposit (NG 4704), documented in 1978, |
| --- | --- |

—

about 50 km to the S., Sędziny deposit (NG 4704), documented in 1978,

| — | about 50 km to the S., Ceradz Dolny deposit (NG 4705), documented in 1978; |
| --- | --- |

—

about 50 km to the S., Ceradz Dolny deposit (NG 4705), documented in 1978;

II — no tight gas discovered in the Rotliegend

Seismic surveys completed (rightholder)

1976-1977 Czarnków-Poznań-Strzelno 2D (State Treasury)

1979 Piła-Bydgoszcz 2D (State Treasury)

1980-1981 Radęcin-Wieleń-Murowana Goślina 2D (State Treasury)

1982-1984 Wałcz-Gołańcz 2D (State Treasury)

1985-1986 Elektrownia Jądrowa Warta 2D (State Treasury)

2011 Poland SPAN Obrzycko-Zabartowo line

2014 Poland SPAN Golęczewo-Szubin line

Wells (MD)

benchmark wells:

none

offset wells:

Piła 1/IG-1 (5 482  m), Objezierze IG-1 (5 094,5  m)

6.   Commencement date of activities

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

7.   Minimum scope of geological works, including geological operations, or mining operations

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

Phase I (12 months): interpreting and analysing archival geological data;

Phase II (12 months): geophysical surveys — 2D seismic tests (100 km excitation line) or 3D seismic tests (50 km2 excitation area);

Phase III (24 months): drilling one borehole to a maximum depth of 5 500 m, with mandatory coring of prospective intervals;

Phase IV (12 months): analysing the geological data obtained.

8.   Period for which the concession is to be granted

The concession period is 30 years, including:

| — | a prospection and exploration phase of five years’ duration, starting from the date on which the concession is granted, |
| --- | --- |

—

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

| — | an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained.

9.   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

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

10.   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

11.   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Chodzież’ area during the five-year base period is PLN 245 022,57 (in words: two hundred and forty-five thousand and twenty-two zlotys, fifty-seven grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

12.   Information concerning requirements to be met by bids and documents required from bidders

| 1. | Bids should specify:






  (1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

(1)

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

| (2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

(2)

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

| (3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

(3)

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

| (4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

(4)

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

| (5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

(5)

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

| (6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

(6)

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

| (7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

(7)

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

| (8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

(8)

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

| (9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

(9)

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

| (10) | the scope of the geological information available to the bidder; |
| --- | --- |

(10)

the scope of the geological information available to the bidder;

| (11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

(11)

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

| (12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

(12)

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

| (13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

(13)

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

| (14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

(14)

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

| (15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

(15)

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

| (16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

(16)

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

| (17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

(17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  (1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

(1)

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

| (2) | proof that a deposit has been lodged; |
| --- | --- |

(2)

proof that a deposit has been lodged;

| (3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

(3)

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

| (4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

(4)

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

| (5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

(5)

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

| (6) | two copies of the geological operations project file. |
| --- | --- |

(6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

13.   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1.   Bid evaluation committee

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

IV.2.   Further clarifications

Within 14 days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within 14 days from the receipt of the request, the concession authority will publish the explanations in the Public Information Bulletin (Biuletyn Informacji Publicznej), on the page of the administrative office subordinate to that authority.

IV.3.   Additional information

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

| Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department) |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449; Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449; Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of Budzyń, Chodzież, Czarnków, Lubasz, Połajewo, Ryczywół, Damasławek, Mieścisko and Wągrowiec, the urban municipalities of Margonin, Szamocin, Trzcianka, Rogoźno, Ujście and Gołańcz and the towns of Czarnków, Chodzież and Wągrowiec in Wielkopolskie Province, and the urban municipality of Janowiec Wielkopolski in Kujawsko-Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (12) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 553 208,82 | 391 696,38 |
| 2 | 543 811,58 | 398 404,58 |
| 3 | 544 249,21 | 376 171,46 |
| 4 | 544 548,71 | 364 927,26 |
| 5 | 553 809,82 | 365 184,38 |
| 6 | 554 864,44 | 331 642,37 |
| 7 | 573 431,06 | 332 289,06 |
| 8 | 572 875,62 | 349 057,65 |
| 9 | 572 026,54 | 378 791,78 |
| 10 | 563 112,93 | 365 568,76 |
| 11 | 562 674,12 | 382 371,14 |
| 12 | 553 408,12 | 382 145,42 |

1.

No

X

Y

1

553 208,82

391 696,38

2

543 811,58

398 404,58

3

544 249,21

376 171,46

4

544 548,71

364 927,26

5

553 809,82

365 184,38

6

554 864,44

331 642,37

7

573 431,06

332 289,06

8

572 875,62

349 057,65

9

572 026,54

378 791,78

10

563 112,93

365 568,76

11

562 674,12

382 371,14

12

553 408,12

382 145,42

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 5 500 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Chodzież’ area within one year from the date of the Agreement being concluded.

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






  (1) | in Permian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits; |
| --- | --- | --- |

3.

(1)

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

| (2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Permian formations. |
| --- | --- |

(2)

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

| 4. | The surface area of the vertical projection of the area described above is 1 119,08 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended), and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

| 2. | The mining usufruct rights shall be established for a period of 30 years, including five years for the prospection and exploration phase and 25 years for the extraction phase, subject to Sections 8(2) and 10. |
| --- | --- |

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Chodzież” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send copies of proof of payment of the fee referred to in paragraph 1 to the State Treasury within seven days from the date of payment of the fee for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire.. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination shall not be valid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the State Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  (1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND; |
| --- | --- | --- |

1.

(1)

State Treasury:

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

| (2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

(2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

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

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---

| 12.12.2018 | EN | Official Journal of the European Union | C 448/47 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/47

---

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

(2018/C 448/05)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Law Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Orle’ area, parts of concession blocks Nos 127, 128, 147 and 148.

2.   Area within which the activities are to be conducted

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

| No | X | Y |
| --- | --- | --- |
| 1 | 594 148,37 | 426 960,10 |
| 2 | 582 363,26 | 418 634,95 |
| 3 | 599 426,14 | 395 809,11 |
| 4 | 604 582,91 | 399 934,60 |
| 5 | 613 883,12 | 400 129,96 |

No

X

Y

1

594 148,37

426 960,10

2

582 363,26

418 634,95

3

599 426,14

395 809,11

4

604 582,91

399 934,60

5

613 883,12

400 129,96

The surface area of the vertical projection of the area covered by this bidding procedure is 423,43 km2.

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

| — | municipalities: Sośno, Sadki, Białe Błota and Sicienko, |
| --- | --- |

—

municipalities: Sośno, Sadki, Białe Błota and Sicienko,

| — | urban municipalities: Więcbork, Szubin, Mrocza, Nakło nad Notecią and Koronowo, in Kujawsko-Pomorskie Province. |
| --- | --- |

—

urban municipalities: Więcbork, Szubin, Mrocza, Nakło nad Notecią and Koronowo, in Kujawsko-Pomorskie Province.

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

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

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12.00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(1) of the Geological and Mining Act, independently, or as the operator if several entities are applying jointly for the concession.

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing, |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions), |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions),

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed, |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection, |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project, |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

5.   Minimum scope of geological information

| Concession data | name of area: Orle
  location: onshore; concession blocks 127, 128, 147 and 148 |
| --- | --- |
| Type of deposit | conventional deposits of natural gas and oil |
| Structural levels | Cenozoic
  Permian-Mesozoic
  Carboniferous |
| Petroleum systems | I — Carboniferous-Permian
  II — Zechstein (Main Dolomite) |
| Source rocks | I — Lower Carboniferous claystones and mudstones
  II — potential Main Dolomite formations |
| Reservoir rocks | I — Carboniferous and Permian sandstones
  II — Main Dolomite carbonate rocks |
| Seal rocks | I — Zechstein evaporitic formations; argilaceous rocks in clusters between potential Rotliegend reservoir formations
  II — Zechstein evaporitic formations |
| Thickness of overburden | I — 4 200 -4 400  m
  II — 3 500  m |
| Trap type | I — Carboniferous — stratigraphic and tectonic
  I — Rotliegend — structural, tectonic, lithological
  II — Main Dolomite — lithological-facial, structural |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | No deposits in the area or in its close vicinity |
| Seismic surveys completed (rightholder) | 1978 — Piła-Bydgoszcz — 1 2D survey (State Treasury)
  1980-1982 — Bydgoszcz — 12 2D profiles (State Treasury)
  1992-1993 — Debrzno-Złotów-Zabartowo — 3 2D profiles (PGNiG S.A.) |
| Wells (MD) | benchmark wells:
  Bydgoszcz IG 1 (5 616,0  m)
  Wyrzysk IG 1 (3 654,5  m)
  offset wells:
  Zabartowo 1 (4 823,5  m)
  Zabartowo 2 (4 569,6  m) |

Concession data

name of area: Orle

location: onshore; concession blocks 127, 128, 147 and 148

Type of deposit

conventional deposits of natural gas and oil

Structural levels

Cenozoic

Permian-Mesozoic

Carboniferous

Petroleum systems

I — Carboniferous-Permian

II — Zechstein (Main Dolomite)

Source rocks

I — Lower Carboniferous claystones and mudstones

II — potential Main Dolomite formations

Reservoir rocks

I — Carboniferous and Permian sandstones

II — Main Dolomite carbonate rocks

Seal rocks

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

II — Zechstein evaporitic formations

Thickness of overburden

I — 4 200 -4 400  m

II — 3 500  m

Trap type

I — Carboniferous — stratigraphic and tectonic

I — Rotliegend — structural, tectonic, lithological

II — Main Dolomite — lithological-facial, structural

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

No deposits in the area or in its close vicinity

Seismic surveys completed (rightholder)

1978 — Piła-Bydgoszcz — 1 2D survey (State Treasury)

1980-1982 — Bydgoszcz — 12 2D profiles (State Treasury)

1992-1993 — Debrzno-Złotów-Zabartowo — 3 2D profiles (PGNiG S.A.)

Wells (MD)

benchmark wells:

Bydgoszcz IG 1 (5 616,0  m)

Wyrzysk IG 1 (3 654,5  m)

offset wells:

Zabartowo 1 (4 823,5  m)

Zabartowo 2 (4 569,6  m)

6.   Commencement date of activities

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

7.   Minimum scope of geological works, including geological operations, or mining operations

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

Phase I (12 months): analysing and interpreting archival geological data

Phase II (24 months): drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

Phase III (12 months): analysing the geological data obtained.

8.   Period for which the concession is to be granted

The concession period is 30 years, including:

| — | a prospection and exploration phase of four years’ duration, starting from the date on which the concession is granted, |
| --- | --- |

—

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

| — | an extraction phase of 26 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 26 years’ duration, starting from the date on which an investment decision is obtained.

9.   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

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

10.   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

11.   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Orle’ area during the five-year base period is PLN 92 710,00 (in words: ninety-two thousand, seven hundred and ten zlotys) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

12.   Information concerning requirements to be met by bids and documents required from bidders

| 1. | Bids should specify:






  (1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

(1)

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

| (2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

(2)

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

| (3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

(3)

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

| (4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

(4)

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

| (5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

(5)

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

| (6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

(6)

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

| (7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

(7)

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

| (8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

(8)

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

| (9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

(9)

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

| (10) | the scope of the geological information available to the bidder; |
| --- | --- |

(10)

the scope of the geological information available to the bidder;

| (11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

(11)

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

| (12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

(12)

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

| (13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

(13)

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

| (14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

(14)

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

| (15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

(15)

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

| (16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

(16)

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

| (17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

(17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  (1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

(1)

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

| (2) | proof that a deposit has been lodged; |
| --- | --- |

(2)

proof that a deposit has been lodged;

| (3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

(3)

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

| (4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

(4)

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

| (5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

(5)

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

| (6) | two copies of the geological operations project file. |
| --- | --- |

(6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

13.   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1.   Bid evaluation committee

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

IV.2.   Further clarifications

Within 14 days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within 14 days from the receipt of the request, the concession authority will publish the explanations in the Public Information Bulletin (Biuletyn Informacji Publicznej), on the page of the administrative office subordinate to that authority.

IV.3.   Additional information

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

| Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department) |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449; Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449; Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of Sośno, Sadki, Białe Błota and Sicienko and the urban municipalities of Więcbork, Szubin, Mrocza, Nakło nad Notecią and Koronowo in Kujawsko-Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (5) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 594 148,37 | 426 960,10 |
| 2 | 582 363,26 | 418 634,95 |
| 3 | 599 426,14 | 395 809,11 |
| 4 | 604 582,91 | 399 934,60 |
| 5 | 613 883,12 | 400 129,96 |

1.

No

X

Y

1

594 148,37

426 960,10

2

582 363,26

418 634,95

3

599 426,14

395 809,11

4

604 582,91

399 934,60

5

613 883,12

400 129,96

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

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






  (1) | in Carboniferous and Permian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits; |
| --- | --- | --- |

3.

(1)

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

| (2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Carboniferous and Permian formations. |
| --- | --- |

(2)

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

| 4. | The surface area of the vertical projection of the area described above is 423,43 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended), and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

| 2. | The mining usufruct rights shall be established for a period of 30 years, including four years for the prospection and exploration phase and 26 years for the extraction phase, subject to Sections 8(2) and 10. |
| --- | --- |

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Orle” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send the State Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement due to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination will be invalid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  (1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND; |
| --- | --- | --- |

1.

(1)

State Treasury:

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

| (2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

(2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

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

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---

| 12.12.2018 | EN | Official Journal of the European Union | C 448/58 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/58

---

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

(2018/C 448/06)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND. |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

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

2.   Area within which the activities are to be conducted

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

| No | X | Y |
| --- | --- | --- |
| 1 | 583 341,11 | 378 925,81 |
| 2 | 572 026,54 | 378 791,78 |
| 3 | 572 875,62 | 349 057,65 |
| 4 | 580 980,15 | 332 427,20 |
| 5 | 601 193,83 | 333 133,14 |
| 6 | 600 818,16 | 345 067,12 |

No

X

Y

1

583 341,11

378 925,81

2

572 026,54

378 791,78

3

572 875,62

349 057,65

4

580 980,15

332 427,20

5

601 193,83

333 133,14

6

600 818,16

345 067,12

The surface area of the vertical projection of the area covered by this bidding procedure is 943,37 km2.

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

| — | municipalities: Chodzież, Czarnków, Białośliwie, Kaczory, Miasteczko Krajeńskie and Szydłowo, |
| --- | --- |

—

municipalities: Chodzież, Czarnków, Białośliwie, Kaczory, Miasteczko Krajeńskie and Szydłowo,

| — | urban municipalities: Margonin, Szamocin, Trzcianka, Ujście, Wysoka, Gołańcz and Krajenka, |
| --- | --- |

—

urban municipalities: Margonin, Szamocin, Trzcianka, Ujście, Wysoka, Gołańcz and Krajenka,

| — | towns: Piła and Chodzież, in Wielkopolskie Province, and |
| --- | --- |

—

towns: Piła and Chodzież, in Wielkopolskie Province, and

| — | the municipality of Wałcz in Zachodniopomorskie Province. |
| --- | --- |

—

the municipality of Wałcz in Zachodniopomorskie Province.

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

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

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12.00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(1) of the Geological and Mining Law Act, independently, or as the operator if several entities are applying jointly for the concession.

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing, |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions), |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions),

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed, |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection, |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project, |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

5.   Minimum scope of geological information

| Concession data | name of area: Piła
  location: onshore; concession blocks 146 and 147 |
| --- | --- |
| Type of deposit | conventional and unconventional for natural gas |
| Structural levels | Permian |
| Petroleum systems | I — conventional in Rotliegend formations
  II — unconventional (tight gas) in Rotliegend formations |
| Source rocks | I, II — Carboniferous mudstones and claystones |
| Reservoir rocks | I, II — Rotliegend sandstones |
| Seal rocks | I, II — Zechstein evaporites, Rotliegend fine-grained clastic rocks |
| Thickness of overburden | I — 4 200 -5 100  m
  II — 5 000 -6 000  m |
| Trap type | I — structural and stratigraphic
  II — unconventional |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | no identified deposits in the vicinity |
| Seismic surveys completed (rightholder) | 1977 Czarnków-Poznań-Strzelno 2D (State Treasury)
  1979 Piła-Bydgoszcz 2D (State Treasury)
  1982 Bydgoszcz 2D (State Treasury)
  1982-1984 Wałcz-Gołańcz 2D (State Treasury)
  2011 Obrzycko-Zabartowo (State Treasury) |
| Wells (MD) | benchmark wells:
  Piła 1/IG-1 (5 482  m)
  offset wells:
  Złotów 2 (4 845  m) |

Concession data

name of area: Piła

location: onshore; concession blocks 146 and 147

Type of deposit

conventional and unconventional for natural gas

Structural levels

Permian

Petroleum systems

I — conventional in Rotliegend formations

II — unconventional (tight gas) in Rotliegend formations

Source rocks

I, II — Carboniferous mudstones and claystones

Reservoir rocks

I, II — Rotliegend sandstones

Seal rocks

I, II — Zechstein evaporites, Rotliegend fine-grained clastic rocks

Thickness of overburden

I — 4 200 -5 100  m

II — 5 000 -6 000  m

Trap type

I — structural and stratigraphic

II — unconventional

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

no identified deposits in the vicinity

Seismic surveys completed (rightholder)

1977 Czarnków-Poznań-Strzelno 2D (State Treasury)

1979 Piła-Bydgoszcz 2D (State Treasury)

1982 Bydgoszcz 2D (State Treasury)

1982-1984 Wałcz-Gołańcz 2D (State Treasury)

2011 Obrzycko-Zabartowo (State Treasury)

Wells (MD)

benchmark wells:

Piła 1/IG-1 (5 482  m)

offset wells:

Złotów 2 (4 845  m)

6.   Commencement date of activities

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

7.   Minimum scope of geological works, including geological operations, or mining operations

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

Phase I (12 months): analysing and interpreting archival geological data

Phase II (12 months): geophysical surveys — 2D seismic test (100 km excitation line) or 3D seismic test (50 km2 excitation area)

Phase III (24 months): drilling one borehole to a maximum depth of 6 000 m, with mandatory coring of prospective intervals

Phase IV (12 months): analysing the geological data obtained.

8.   Period for which the concession is to be granted

The concession period is 30 years, including:

| — | a prospection and exploration phase of five years’ duration, starting from the date on which the concession is granted, |
| --- | --- |

—

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

| — | an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained.

9.   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

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

10.   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

11.   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Piła’ area during the five-year base period is PLN 206 550,86 (in words: two hundred and six thousand, five hundred and fifty zlotys and eighty-six grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

12.   Information concerning requirements to be met by bids and documents required from bidders

| 1. | Bids should specify:






  (1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

(1)

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

| (2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

(2)

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

| (3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

(3)

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

| (4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

(4)

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

| (5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

(5)

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

| (6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

(6)

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

| (7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

(7)

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

| (8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

(8)

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

| (9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

(9)

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

| (10) | the scope of the geological information available to the bidder; |
| --- | --- |

(10)

the scope of the geological information available to the bidder;

| (11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

(11)

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

| (12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

(12)

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

| (13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

(13)

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

| (14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

(14)

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

| (15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

(15)

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

| (16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

(16)

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

| (17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

(17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  (1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

(1)

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

| (2) | proof that a deposit has been lodged; |
| --- | --- |

(2)

proof that a deposit has been lodged;

| (3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

(3)

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

| (4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

(4)

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

| (5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

(5)

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

| (6) | two copies of the geological operations project file. |
| --- | --- |

(6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

13.   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1.   Bid evaluation committee

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

IV.2.   Further clarifications

Within 14 days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within 14 days from the receipt of the request, the concession authority will publish the explanations in the Public Information Bulletin (Biuletyn Informacji Publicznej), on the page of the administrative office subordinate to that authority.

IV.3.   Additional information

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

| Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department) |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449; Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449; Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of Chodzież, Czarnków, Białośliwie, Kaczory, Miasteczko Krajeńskie and Szydłowo, the urban municipalities of Margonin, Szamocin, Trzcianka, Ujście, Wysoka, Gołańcz and Krajenka, and the towns of Piła and Chodzież in Wielkopolskie Province, and the municipality of Wałcz in Zachodniopomorskie Province, the boundaries of which are defined by lines joining points (1) to (6) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 583 341,11 | 378 925,81 |
| 2 | 572 026,54 | 378 791,78 |
| 3 | 572 875,62 | 349 057,65 |
| 4 | 580 980,15 | 332 427,20 |
| 5 | 601 193,83 | 333 133,14 |
| 6 | 600 818,16 | 345 067,12 |

1.

No

X

Y

1

583 341,11

378 925,81

2

572 026,54

378 791,78

3

572 875,62

349 057,65

4

580 980,15

332 427,20

5

601 193,83

333 133,14

6

600 818,16

345 067,12

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 6 000 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Piła’ area within one year from the date of the Agreement being concluded.

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






  (1) | in Permian formations, carry out activities relating to the prospection and exploration of oil and natural gas deposits; |
| --- | --- | --- |

3.

(1)

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

| (2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Permian formations. |
| --- | --- |

(2)

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

| 4. | The surface area of the vertical projection of the area described above is 943,37 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Law Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

| 2. | The mining usufruct rights shall be established for a period of 30 years, including five years for the prospection and exploration phase and 25 years for the extraction phase, subject to Sections 8(2) and 10. |
| --- | --- |

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Piła” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send the State Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement owing to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination will be invalid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the State Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  (1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND; |
| --- | --- | --- |

1.

(1)

State Treasury:

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

| (2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

(2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole or in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

Amendments to the Agreement shall be made in writing, failing which they will be invalid.

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---

| 12.12.2018 | EN | Official Journal of the European Union | C 448/69 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/69

---

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

(2018/C 448/07)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Law Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND. |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Sierpowo’ area, part of concession block No 106.

2.   Area within which the activities are to be conducted

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

| No | X | Y |
| --- | --- | --- |
| 1 | 655 747,74 | 368 036,30 |
| 2 | 635 495,40 | 367 464,85 |
| 3 | 636 550,88 | 334 376,60 |
| 4 | 656 786,04 | 335 085,46 |

No

X

Y

1

655 747,74

368 036,30

2

635 495,40

367 464,85

3

636 550,88

334 376,60

4

656 786,04

335 085,46

The surface area of the vertical projection of the area covered by this bidding procedure is 669,11 km2.

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

| — | municipalities: Grzmiąca and Szczecinek, |
| --- | --- |

—

municipalities: Grzmiąca and Szczecinek,

| — | urban municipalities: Barwice, Borne Sulinowo and Biały Bór, |
| --- | --- |

—

urban municipalities: Barwice, Borne Sulinowo and Biały Bór,

| — | town: Szczecinek, in Zachodniopormorskie Province, |
| --- | --- |

—

town: Szczecinek, in Zachodniopormorskie Province,

| — | the urban municipality of Okonek in Wielkopolskie Province, and |
| --- | --- |

—

the urban municipality of Okonek in Wielkopolskie Province, and

| — | the municipality of Rzeczenica and the urban municipality of Czarne in Pomorskie Province. |
| --- | --- |

—

the municipality of Rzeczenica and the urban municipality of Czarne in Pomorskie Province.

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

3.   Time Limit, not less than 90 days from the date of publication of the notice, and place for the submission of bids

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12.00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

Bids may be submitted by entities in respect of which a decision has been issued confirming the positive outcome of a qualification procedure, as provided for in Article 49a(16)(1) of the Geological and Mining Law Act, independently, or as the operator if several entities are applying jointly for the concession.

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions); |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions);

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed; |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

5.   Minimum scope of geological information

| Concession data | name of area: Sierpowo
  location: onshore; concession block 106 |
| --- | --- |
| Type of deposit | conventional oil and natural gas deposits |
| Structural levels | Devonian-Carboniferous
  Permian-Mesozoic |
| Petroleum systems | I — Devonian
  II — Carboniferous-Permian (Rotliegend)
  III — Permian (Main Dolomite) |
| Source rocks | I — hypothetically fine-grained clastic rocks of the Lower Paleozoic and/or Devonian
  II — fine-grained clastic rocks of the Lower Carboniferous and Devonian
  III — organic matter-rich interlayering in the Main Dolomite |
| Reservoir rocks | I — Upper Devonian carbonates,
  II — Lower Carboniferous and Rotliegend sandstones,
  III — Main Dolomite carbonates |
| Seal rocks | I — fine-grained clastic rocks of the Carboniferous, and Zechstein evaporites,
  II, III — Zechstein evaporites |
| Thickness of overburden | I > 3 800  m
  II, III > 3 000  m |
| Trap type | I — structural, lithological,
  II — structural, structural-stratigraphic, lithological,
  III — structural, lithological |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | Brzozówka (O): cumulative production (12 years): 36 396 000 tonnes oil, 9 797 000  m3 natural gas; production in 2016: none, deposit deleted from register of reserves; Original reserves and resources in 1991: 26 860 tonnes oil and 8 220 000  m3 natural gas
  Wierzchowo (NG): cumulative production 514 020 000  m3 (42 years); production in 2016: none; balance sheet reserves and resources in 2016: 10 780 000  m3 natural gas; industrial reserves in 2016: 10 690 000  m3 natural gas. |
| Seismic surveys completed (rightholder) | 1976 — 2 profiles — Szczecinek-Człuchów (State Treasury)
  1976 — 1 profile — Wierzchowo (State Treasury)
  1977 — 13 profiles — Szczecinek-Człuchów (State Treasury)
  1979 — 1 profile — Wysoka Kamieńska-Błotno (State Treasury)
  1979 — 1 profile — Bydgoszcz area (State Treasury)
  1984 — 2 profiles — Szczecinek (State Treasury)
  1985 — 5 profiles — Bielica (State Treasury)
  1985 — 3 profiles — Szczecinek-Lędyczek (State Treasury)
  1985 — 2 profiles — Szczecinek (State Treasury)
  1985 — 1 profile — Bielica (State Treasury)
  1985 — 3 profiles — Szczecinek-Lędyczek (State Treasury)
  1985 — 2 profiles — Bielica (State Treasury)
  1985 — 7 profiles — Szczecinek-Lędyczek (State Treasury)
  1986 — 1 profile — Bielica (State Treasury)
  1986 — 4 profiles — Szczecinek-Lędyczek (State Treasury)
  1987 — 5 profiles — Szczecinek-Czarne-Debrzno (State Treasury)
  1988 — 6 profiles — Okonek-Lędyczek (State Treasury)
  1988 — 10 profiles — Szczecinek-Czarne-Debrzno (State Treasury)
  1989 — 1 profile — Szczecinek-Miastko (State Treasury)
  1989 — 6 profiles — Okonek-Lędyczek (PGNiG S.A.)
  1989 — 3 profiles — Szczecinek-Czarne-Debrzno (PGNiG S.A.)
  1990 — 7 profiles — Czechy-Szczecinek (PGNiG S.A.)
  1991 — 3 profiles — Rzeczenica-Biały Bór (PGNiG S.A.)
  1992 — 10 profiles — Czarne-Zabartowo (PGNiG S.A.)
  1995 — 2 profiles — Drzonowo-Wierzchowo (PGNiG S.A.) |
| Benchmark wells (MD) | Bielica 2 (4 102  m)
  Borki 1 (3 684 )
  Borki 1Z (3 419  m)
  Borki 1Z-BIS (4 262  m)
  Brzozówka 1 (3 397  m)
  Brzozówka 1A (3 910  m)
  Brzozówka 2 (3 970  m)
  Czaplinek IG-1 (6 006  m)
  Czarne 1 (3 818  m)
  Czarne 2 (3 971  m)
  Czarne 3 (4 210  m)
  Czarne 4 (3 933  m)
  Czarne 5 (3 941  m)
  Szczecinek IG-1 (3 119  m) |

Concession data

name of area: Sierpowo

location: onshore; concession block 106

Type of deposit

conventional oil and natural gas deposits

Structural levels

Devonian-Carboniferous

Permian-Mesozoic

Petroleum systems

I — Devonian

II — Carboniferous-Permian (Rotliegend)

III — Permian (Main Dolomite)

Source rocks

I — hypothetically fine-grained clastic rocks of the Lower Paleozoic and/or Devonian

II — fine-grained clastic rocks of the Lower Carboniferous and Devonian

III — organic matter-rich interlayering in the Main Dolomite

Reservoir rocks

I — Upper Devonian carbonates,

II — Lower Carboniferous and Rotliegend sandstones,

III — Main Dolomite carbonates

Seal rocks

I — fine-grained clastic rocks of the Carboniferous, and Zechstein evaporites,

II, III — Zechstein evaporites

Thickness of overburden

I > 3 800  m

II, III > 3 000  m

Trap type

I — structural, lithological,

II — structural, structural-stratigraphic, lithological,

III — structural, lithological

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

Brzozówka (O): cumulative production (12 years): 36 396 000 tonnes oil, 9 797 000  m3 natural gas; production in 2016: none, deposit deleted from register of reserves; Original reserves and resources in 1991: 26 860 tonnes oil and 8 220 000  m3 natural gas

Wierzchowo (NG): cumulative production 514 020 000  m3 (42 years); production in 2016: none; balance sheet reserves and resources in 2016: 10 780 000  m3 natural gas; industrial reserves in 2016: 10 690 000  m3 natural gas.

Seismic surveys completed (rightholder)

1976 — 2 profiles — Szczecinek-Człuchów (State Treasury)

1976 — 1 profile — Wierzchowo (State Treasury)

1977 — 13 profiles — Szczecinek-Człuchów (State Treasury)

1979 — 1 profile — Wysoka Kamieńska-Błotno (State Treasury)

1979 — 1 profile — Bydgoszcz area (State Treasury)

1984 — 2 profiles — Szczecinek (State Treasury)

1985 — 5 profiles — Bielica (State Treasury)

1985 — 3 profiles — Szczecinek-Lędyczek (State Treasury)

1985 — 2 profiles — Szczecinek (State Treasury)

1985 — 1 profile — Bielica (State Treasury)

1985 — 3 profiles — Szczecinek-Lędyczek (State Treasury)

1985 — 2 profiles — Bielica (State Treasury)

1985 — 7 profiles — Szczecinek-Lędyczek (State Treasury)

1986 — 1 profile — Bielica (State Treasury)

1986 — 4 profiles — Szczecinek-Lędyczek (State Treasury)

1987 — 5 profiles — Szczecinek-Czarne-Debrzno (State Treasury)

1988 — 6 profiles — Okonek-Lędyczek (State Treasury)

1988 — 10 profiles — Szczecinek-Czarne-Debrzno (State Treasury)

1989 — 1 profile — Szczecinek-Miastko (State Treasury)

1989 — 6 profiles — Okonek-Lędyczek (PGNiG S.A.)

1989 — 3 profiles — Szczecinek-Czarne-Debrzno (PGNiG S.A.)

1990 — 7 profiles — Czechy-Szczecinek (PGNiG S.A.)

1991 — 3 profiles — Rzeczenica-Biały Bór (PGNiG S.A.)

1992 — 10 profiles — Czarne-Zabartowo (PGNiG S.A.)

1995 — 2 profiles — Drzonowo-Wierzchowo (PGNiG S.A.)

Benchmark wells (MD)

Bielica 2 (4 102  m)

Borki 1 (3 684 )

Borki 1Z (3 419  m)

Borki 1Z-BIS (4 262  m)

Brzozówka 1 (3 397  m)

Brzozówka 1A (3 910  m)

Brzozówka 2 (3 970  m)

Czaplinek IG-1 (6 006  m)

Czarne 1 (3 818  m)

Czarne 2 (3 971  m)

Czarne 3 (4 210  m)

Czarne 4 (3 933  m)

Czarne 5 (3 941  m)

Szczecinek IG-1 (3 119  m)

6.   Commencement date of activities

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

7.   Minimum scope of geological works, including geological operations, or mining operations

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

Phase I (12 months): analysing and interpreting archival geological data;

Phase II (12 months): geophysical surveys — 2D seismic test (80 km excitation line) or 3D seismic test (50 km2 excitation area);

Phase III (24 months): drilling 1 (one) borehole to a maximum depth of 6 000 m, with mandatory coring of prospective intervals;

Phase IV (12 months): analysing the geological data obtained.

8.   Period for which the concession is to be granted

The concession period is 30 years, including:

| — | a prospection and exploration phase of five years’ duration, starting from the date on which the concession is granted, |
| --- | --- |

—

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

| — | an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 25 years’ duration, starting from the date on which an investment decision is obtained.

9.   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

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

10.   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

11.   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Sierpowo’ area during the five-year base period is PLN 146 501,63 (in words: one hundred and forty-six thousand, five hundred and one zlotys, sixty-three grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

12.   Information concerning requirements to be met by bids and documents required from bidders

| 1. | Bids should specify:






  (1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

(1)

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

| (2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

(2)

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

| (3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

(3)

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

| (4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

(4)

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

| (5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

(5)

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

| (6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

(6)

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

| (7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

(7)

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

| (8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

(8)

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

| (9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

(9)

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

| (10) | the scope of the geological information available to the bidder; |
| --- | --- |

(10)

the scope of the geological information available to the bidder;

| (11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

(11)

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

| (12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

(12)

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

| (13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

(13)

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

| (14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

(14)

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

| (15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

(15)

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

| (16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

(16)

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

| (17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

(17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  (1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

(1)

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

| (2) | proof that a deposit has been lodged; |
| --- | --- |

(2)

proof that a deposit has been lodged;

| (3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

(3)

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

| (4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

(4)

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

| (5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

(5)

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

| (6) | two copies of the geological operations project file. |
| --- | --- |

(6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

13.   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1.   Bid evaluation committee

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

IV.2.   Further clarifications

Within 14 days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within 14 days from the receipt of the request, the concession authority will publish the explanations in the Public Information Bulletin (Biuletyn Informacji Publicznej), on the page of the administrative office subordinate to that authority.

IV.3.   Additional information

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

| Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department) |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449; Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449; Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of Grzmiąca and Szczecinek, the urban municipalities of Barwice, Borne Sulinowo and Biały Bór and the town of Szczecinek in Zachodniopomorskie Province, the urban municipality of Okonek in Wielkopolskie Province, and the municipality of Rzeczenica and urban municipality of Czarne in Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (4) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 655 747,74 | 368 036,30 |
| 2 | 635 495,40 | 367 464,85 |
| 3 | 636 550,88 | 334 376,60 |
| 4 | 656 786,04 | 335 085,46 |

1.

No

X

Y

1

655 747,74

368 036,30

2

635 495,40

367 464,85

3

636 550,88

334 376,60

4

656 786,04

335 085,46

hereby establishes mining usufruct rights for the Holder of Mining Usufruct Rights in the area described above, limited above by the lower boundary of surface land properties and below at a depth of 6 000 m, provided that the Holder of Mining Usufruct Rights obtains a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Sierpowo’ area within one year from the date of the Agreement being concluded.

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






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

3.

(1)

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

| (2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Devonian, Carboniferous and Permian formations. |
| --- | --- |

(2)

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

| 4. | The surface area of the vertical projection of the area described above is 669,11 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Law Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

| 2. | The mining usufruct rights shall be established for a period of 30 years, including five years for the prospection and exploration phase and 25 years for the extraction phase, subject to Sections 8(2) and 10. |
| --- | --- |

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Sierpowo” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send the State Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil and natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement owing to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination will be invalid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the State Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  (1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND. |
| --- | --- | --- |

1.

(1)

State Treasury:

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

| (2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

(2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole or in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

Amendments to the Agreement shall be made in writing, failing which they will be invalid.

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---

| 12.12.2018 | EN | Official Journal of the European Union | C 448/81 |
| --- | --- | --- | --- |

12.12.2018

EN

Official Journal of the European Union

C 448/81

---

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

(2018/C 448/08)

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

SECTION I: LEGAL BASIS

| 1. | Article 49h(2) of the Geological and Mining Law Act (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended) |
| --- | --- |

1.

| 2. | Cabinet Regulation of 28 July 2015 on bidding for concessions for the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and concessions for the extraction of hydrocarbons (Journal of Laws 2015, item 1171) |
| --- | --- |

2.

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

3.

SECTION II: ENTITY INVITING BIDS

| Name: Ministry of the Environment |
| --- |
| Postal address: ul. Wawelska 52/54, 00-922 Warsaw, POLAND |
| Tel. + 48 223692449, + 48 223692447; Fax + 48 223692460 |
| Website: www.mos.gov.pl |

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the ‘Wejherowo’ area, part of concession block No 29.

2.   Area within which the activities are to be conducted

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

| No | X | Y |
| --- | --- | --- |
| 1 | 765 579,52 | 435 528,73 |
| 2 | 759 982,46 | 460 170,68 |
| 3 | 737 259,22 | 467 502,29 |
| 4 | 737 770,93 | 435 133,01 |

No

X

Y

1

765 579,52

435 528,73

2

759 982,46

460 170,68

3

737 259,22

467 502,29

4

737 770,93

435 133,01

The surface area of the vertical projection of the area covered by this bidding procedure is 709,63 km2.

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

| — | municipalities: Puck, Kosakowo, Krokowa, Gniewino, Linia, Luzino, Łęczyce, Szemud and Wejherowo, |
| --- | --- |

—

municipalities: Puck, Kosakowo, Krokowa, Gniewino, Linia, Luzino, Łęczyce, Szemud and Wejherowo,

| — | towns: Reda, Rumia, Wejherowo and Gdynia, in Pomorskie Province. |
| --- | --- |

—

towns: Reda, Rumia, Wejherowo and Gdynia, in Pomorskie Province.

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

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

Bids must be submitted to the headquarters of the Ministry of the Environment no later than 12.00 CET/CEST on the last day of the 121-day period commencing on the day following the date of publication of the notice in the Official Journal of the European Union.

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

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

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

| 30 % — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

30 % —

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

| 25 % — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions); |
| --- | --- |

25 % —

technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential (including 5 % for the scope of collaboration, with regard to the development and implementation of innovative solutions for the prospection, exploration and extraction of hydrocarbons, with scientific bodies conducting research into the geology of Poland, and of analytical tools, technologies and methods for prospecting hydrocarbon deposits which take account of the specificity of Polish geological conditions and which may be applied in those conditions);

| 20 % — | scope and schedule of the geological works, including geological operations, or mining operations proposed; |
| --- | --- |

20 % —

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

| 10 % — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

10 % —

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

| 10 % — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; |
| --- | --- |

10 % —

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

| 5 % — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |
| --- | --- |

5 % —

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

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

5.   Minimum scope of geological information

| Concession data | name of area: Wejherowo
  location: onshore; concession block 29 |
| --- | --- |
| Type of deposit | oil deposits conventional in Middle Cambrian formations
  and unconventional in Middle Cambrian, Ordovician and Silurian formations |
| Structural levels | Cenozoic
  Permian-Mesozoic
  Lower Paleozoic
  Precambrian |
| Petroleum systems | I — Cambrian conventional and unconventional — tight oil and tight gas
  II — Lower Paleozoic unconventional — shale oil and shale gas |
| Source rocks | I, II — mudstones and claystones of the Upper Cambrian (Piaśnica formation), Ordovician (Sasin formation) and Silurian (Jantar bituminous claystone member, Pelplin formation) |
| Reservoir rocks | I — Middle Cambrian sandstones
  II — mudstones and claystones of the Upper Cambrian (Piaśnica formation), Ordovician (Sasin formation) and Silurian (Jantar bituminous claystone member, Pelplin formation) |
| Seal rocks | I, II — Lower Paleozoic mudstones and claystones and Zechstein evaporitic rocks |
| Thickness of overburden | I, II — 2 500 -3 000  m |
| Trap type | I — structural, stratigraphic, lithological
  II — unconventional continuous play accumulations |
| Deposits identified in the vicinity (NG — natural gas; O — oil) | four hydrocarbon deposits in Middle Cambrian formations to the north of the area:
  Żarnowiec (O) — discovered in 1972; cumulative production (45 years): 7 880 tonnes oil and 2 530 000  m3 associated gas; production in 2016: 110 tonnes condensate, 70 000  m3 associated gas; reserves and resources: 42 220 tonnes (industrial 1 570 tonnes); 6 890 000  m3 (industrial 1 320 000  m3)
  Żarnowiec W (O) — discovered in 1990; cumulative production (22 years): 4 260 tonnes condensate and 26 130 000  m3 associated gas; production in 2016: 60 tonnes condensate, 480 000  m3 associated gas; reserves and resources: 17 750 tonnes (industrial 3 780 tonnes); 1 880 000  m3 (industrial 1 030 000  m3)
  Dębki (O) — discovered in 1978; cumulative production (45 years): 36 689 tonnes oil, 10 351 000  m3 associated gas; production in 2016: 520 tonnes oil, 150 000  m3 associated gas; reserves and resources: 8 100 tonnes (industrial 8 130 tonnes); 2 860 000  m3 (industrial 2 880 000  m3)
  Białogóra-E (O) — discovered in 1991; cumulative production (16 years): 2 917 tonnes oil, 2 418 500  m3 associated gas; production in 2016: none; off-balance reserves and resources: 1 430 tonnes (industrial 380 tonnes); off-balance 860 000  m3 (industrial 1 020 000  m3) |
| Seismic surveys completed (rightholder) | 2012 — Lubocino 3D (State Treasury)
  2013 — Opalino 3D (State Treasury)
  2014 — Kochanowo-Tępcz-Cząstkowo 3D (State Treasury)
  1990 — 5 profiles from 2D survey Elektr. Jądrowa Żarnowiec (State Treasury)
  2003 — 6 profiles from 2D survey Kościerzyna-Gdańsk (State Treasury)
  2007 — 24 profiles from 2D survey Kościerzyna-Gdańsk (State Treasury)
  2010 — 13 profiles from 2D survey Opalino-Lubocino (State Treasury)
  2 profiles — PolandSPAN (ION) |
| Wells (MD) | benchmark wells:
  Darżlubie IG 1 (3 520,0  m)
  offset wells:
  Kochanowo 1 (3 275,0  m)
  Lubocino 1 (3 051,0  m)
  Lubocino 2H (3 980  m)
  Lubocino 3H (3 572  m)
  Opalino IG 1 (1 028  m)
  Opalino 2 (3 050  m)
  Opalino 3 (3 070  m)
  Opalino 4 (3 000  m)
  Orle IG 1 (1 118  m)
  Tępcz 1 (3 428  m)
  Wejherowo IG 1 (1 295,8  m)
  Żelistrzewo IG 1 (1 160  m) |

Concession data

name of area: Wejherowo

location: onshore; concession block 29

Type of deposit

oil deposits conventional in Middle Cambrian formations

and unconventional in Middle Cambrian, Ordovician and Silurian formations

Structural levels

Cenozoic

Permian-Mesozoic

Lower Paleozoic

Precambrian

Petroleum systems

I — Cambrian conventional and unconventional — tight oil and tight gas

II — Lower Paleozoic unconventional — shale oil and shale gas

Source rocks

I, II — mudstones and claystones of the Upper Cambrian (Piaśnica formation), Ordovician (Sasin formation) and Silurian (Jantar bituminous claystone member, Pelplin formation)

Reservoir rocks

I — Middle Cambrian sandstones

II — mudstones and claystones of the Upper Cambrian (Piaśnica formation), Ordovician (Sasin formation) and Silurian (Jantar bituminous claystone member, Pelplin formation)

Seal rocks

I, II — Lower Paleozoic mudstones and claystones and Zechstein evaporitic rocks

Thickness of overburden

I, II — 2 500 -3 000  m

Trap type

I — structural, stratigraphic, lithological

II — unconventional continuous play accumulations

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

four hydrocarbon deposits in Middle Cambrian formations to the north of the area:

Żarnowiec (O) — discovered in 1972; cumulative production (45 years): 7 880 tonnes oil and 2 530 000  m3 associated gas; production in 2016: 110 tonnes condensate, 70 000  m3 associated gas; reserves and resources: 42 220 tonnes (industrial 1 570 tonnes); 6 890 000  m3 (industrial 1 320 000  m3)

Żarnowiec W (O) — discovered in 1990; cumulative production (22 years): 4 260 tonnes condensate and 26 130 000  m3 associated gas; production in 2016: 60 tonnes condensate, 480 000  m3 associated gas; reserves and resources: 17 750 tonnes (industrial 3 780 tonnes); 1 880 000  m3 (industrial 1 030 000  m3)

Dębki (O) — discovered in 1978; cumulative production (45 years): 36 689 tonnes oil, 10 351 000  m3 associated gas; production in 2016: 520 tonnes oil, 150 000  m3 associated gas; reserves and resources: 8 100 tonnes (industrial 8 130 tonnes); 2 860 000  m3 (industrial 2 880 000  m3)

Białogóra-E (O) — discovered in 1991; cumulative production (16 years): 2 917 tonnes oil, 2 418 500  m3 associated gas; production in 2016: none; off-balance reserves and resources: 1 430 tonnes (industrial 380 tonnes); off-balance 860 000  m3 (industrial 1 020 000  m3)

Seismic surveys completed (rightholder)

2012 — Lubocino 3D (State Treasury)

2013 — Opalino 3D (State Treasury)

2014 — Kochanowo-Tępcz-Cząstkowo 3D (State Treasury)

1990 — 5 profiles from 2D survey Elektr. Jądrowa Żarnowiec (State Treasury)

2003 — 6 profiles from 2D survey Kościerzyna-Gdańsk (State Treasury)

2007 — 24 profiles from 2D survey Kościerzyna-Gdańsk (State Treasury)

2010 — 13 profiles from 2D survey Opalino-Lubocino (State Treasury)

2 profiles — PolandSPAN (ION)

Wells (MD)

benchmark wells:

Darżlubie IG 1 (3 520,0  m)

offset wells:

Kochanowo 1 (3 275,0  m)

Lubocino 1 (3 051,0  m)

Lubocino 2H (3 980  m)

Lubocino 3H (3 572  m)

Opalino IG 1 (1 028  m)

Opalino 2 (3 050  m)

Opalino 3 (3 070  m)

Opalino 4 (3 000  m)

Orle IG 1 (1 118  m)

Tępcz 1 (3 428  m)

Wejherowo IG 1 (1 295,8  m)

Żelistrzewo IG 1 (1 160  m)

6.   Commencement date of activities

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

7.   Minimum scope of geological works, including geological operations, or mining operations

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

Phase I (18 months): analysing and interpreting archival geological data

Phase II (24 months): drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

Phase III (12 months): analysing the geological data obtained

8.   Period for which the concession is to be granted

The concession period is 30 years, including:

| — | a prospection and exploration phase of 4,5 years’ duration, starting from the date on which the concession is granted, |
| --- | --- |

—

a prospection and exploration phase of 4,5 years’ duration, starting from the date on which the concession is granted,

| — | an extraction phase of 25,5 years’ duration, starting from the date on which an investment decision is obtained. |
| --- | --- |

—

an extraction phase of 25,5 years’ duration, starting from the date on which an investment decision is obtained.

9.   Specific conditions for carrying out the activities and for ensuring public safety, public health, environmental protection and rational management of deposits

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

10.   Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

11.   Information concerning the amount of the fee for establishing mining usufruct rights

The minimum amount of the fee for establishing mining usufruct rights for the ‘Wejherowo’ area during the five-year base period is PLN 155 373,49 (in words: one hundred and fifty-five thousand, three hundred and seventy-three zlotys, forty-nine grosz) per annum. The annual fee for establishing mining usufruct rights for the purpose of the prospection and exploration of minerals is indexed to average annual consumer price indices set cumulatively for the period from the conclusion of the agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski) (Article 49h(3)(12) of the Geological and Mining Law Act).

12.   Information concerning requirements to be met by bids and documents required from bidders

| 1. | Bids should specify:






  (1) | the name (business name) and the registered office of the bidder; |
| --- | --- | --- |

1.

(1)

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

| (2) | the subject of the bid, together with a description specifying the area within which the concession is to be granted and mining usufruct rights are to be established; |
| --- | --- |

(2)

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

| (3) | the period for which the concession is to be granted, the duration of the prospection and exploration phase and the commencement date of the activities; |
| --- | --- |

(3)

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

| (4) | the aim, scope and nature of geological works, including geological operations, or mining operations, and information about the works to be carried out to achieve the intended objective and the technologies to be used; |
| --- | --- |

(4)

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

| (5) | a schedule, broken down into years, for geological works, including geological operations, and the scope of such works; |
| --- | --- |

(5)

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

| (6) | the scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores, as referred to in Article 82(2)(2) of the Geological and Mining Law Act; |
| --- | --- |

(6)

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

| (7) | rights held by the bidder to the real property (area) within which the intended activities are to be carried out, or the right for the establishment of which that entity is applying; |
| --- | --- |

(7)

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

| (8) | a list of areas covered by nature conservation schemes; this requirement does not concern projects for which a decision on environmental conditions is required; |
| --- | --- |

(8)

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

| (9) | the way in which the adverse environmental impacts of the intended activities are to be counteracted; |
| --- | --- |

(9)

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

| (10) | the scope of the geological information available to the bidder; |
| --- | --- |

(10)

the scope of the geological information available to the bidder;

| (11) | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| --- | --- |

(11)

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

| (12) | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons and, in particular, the availability of appropriate technical, organisational, logistical and human resources potential; |
| --- | --- |

(12)

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

| (13) | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- |

(13)

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

| (14) | the proposed technology for conducting geological works, including geological operations, or mining operations; |
| --- | --- |

(14)

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

| (15) | the proposed amount of the fee for establishing mining usufruct rights, this being not less than the amount specified in the notice launching the bidding procedure; |
| --- | --- |

(15)

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

| (16) | the proposed form of providing security, as referred to in Article 49x(4) of the Geological and Mining Law Act; |
| --- | --- |

(16)

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

| (17) | if a bid is submitted jointly by several entities, it must additionally specify:






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

(17)

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

(a)

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

| (b) | the operator; |
| --- | --- |

(b)

the operator;

| (c) | the percentage shares in the costs of geological works, including geological operations, proposed in the cooperation agreement. |
| --- | --- |

(c)

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

| 2. | Bids submitted in a bidding procedure should meet the requirements and conditions laid down in the notice launching that bidding procedure. |
| --- | --- |

2.

| 3. | The following documents are to be enclosed with bids:






  (1) | evidence of the existence of the circumstances described in the bid, in particular extracts from the relevant registers; |
| --- | --- | --- |

3.

(1)

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

| (2) | proof that a deposit has been lodged; |
| --- | --- |

(2)

proof that a deposit has been lodged;

| (3) | a copy of the decision confirming the positive outcome of a qualification procedure, as provided for in Article 49a(17) of the Geological and Mining Law Act; |
| --- | --- |

(3)

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

| (4) | graphical annexes prepared in accordance with the requirements relating to mining maps, indicating the country’s administrative boundaries; |
| --- | --- |

(4)

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

| (5) | written undertakings to make technical resources available to the entity taking part in the bidding procedure if other entities’ technical resources are used when implementing the concession; |
| --- | --- |

(5)

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

| (6) | two copies of the geological operations project file. |
| --- | --- |

(6)

two copies of the geological operations project file.

| 4. | Bidders may, on their own initiative, provide additional information in their bids or attach additional documents thereto. |
| --- | --- |

4.

| 5. | Documents submitted by bidders should be originals or certified true copies of originals as provided for in the Code of Administrative Procedure. This requirement does not apply to copies of documents which are to be attached to bids and were created by the concession authority. |
| --- | --- |

5.

| 6. | Documents drawn up in a foreign language should be submitted together with a translation into Polish by a sworn translator. |
| --- | --- |

6.

| 7. | Bids are to be submitted in a sealed envelope or a sealed package bearing the name (business name) of the bidder and indicating the subject of the bidding procedure. |
| --- | --- |

7.

| 8. | Bids submitted after the expiry of the time limit for the submission of bids will be returned to the bidders unopened. |
| --- | --- |

8.

13.   Information concerning the manner of lodging a deposit, the amount of the deposit and the payment date

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

SECTION IV: ADMINISTRATIVE INFORMATION

IV.1.   Bid evaluation committee

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

IV.2.   Further clarifications

Within 14 days from the date of publication of the notice, an interested entity may request the concession authority to provide explanations concerning the detailed bid specifications. Within 14 days from the receipt of the request, the concession authority will publish the explanations in the Public Information Bulletin (Biuletyn Informacji Publicznej), on the page of the administrative office subordinate to that authority.

IV.3.   Additional information

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

| Departament Geologii i Koncesji Geologicznych (Geology and Geological Concessions Department) |
| --- |
| Ministry of the Environment |
| ul. Wawelska 52/54 |
| 00-922 Warszawa/Warsaw |
| POLSKA/POLAND |
| Tel. + 48 223692449; Fax + 48 223692460 |

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

Ministry of the Environment

ul. Wawelska 52/54

00-922 Warszawa/Warsaw

POLSKA/POLAND

Tel. + 48 223692449; Fax + 48 223692460

---

ANNEX

AGREEMENT

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

concluded at Warsaw on ..... between:

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

and

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

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

worded as follows:

Section 1

| 1. | The State Treasury, as exclusive owner of the substrata of the Earth’s crust covering the area within the municipalities of Puck, Kosakowo, Krokowa, Gniewino, Linia, Luzino, Łęczyce, Szemud and Wejherowo and the towns of Reda, Rumia, Wejherowo and Gdynia in Pomorskie Province, the boundaries of which are defined by lines joining points (1) to (4) having the following coordinates in the PL-1992 coordinate system:







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 765 579,52 | 435 528,73 |
| 2 | 759 982,46 | 460 170,68 |
| 3 | 737 259,22 | 467 502,29 |
| 4 | 737 770,93 | 435 133,01 |

1.

No

X

Y

1

765 579,52

435 528,73

2

759 982,46

460 170,68

3

737 259,22

467 502,29

4

737 770,93

435 133,01

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

| 2. | If the condition of obtaining the concession referred to in paragraph 1 is not met, the obligations arising under the Agreement shall expire. |
| --- | --- |

2.

| 3. | Within the rock mass area specified in paragraph 1, the Holder of Mining Usufruct Rights may:






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

3.

(1)

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

| (2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Ordovician and Silurian formations. |
| --- | --- |

(2)

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

| 4. | The surface area of the vertical projection of the area described above is 709,63 km2. |
| --- | --- |

4.

| 5. | The mining usufruct rights shall entitle the Holder of Mining Usufruct Rights to use the area specified in paragraph 1 on an exclusive basis for the prospection and exploration of oil and natural gas deposits, as well as for carrying out all operations and activities necessary for this purpose within that area in accordance with the legislation in force, in particular the Geological and Mining Law Act of 9 June 2011 (Journal of Laws (Dziennik Ustaw) 2017, item 2126, as amended), and decisions issued pursuant thereto. |
| --- | --- |

5.

Section 2

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

Section 3

| 1. | The Agreement shall take effect on the date on which the concession is obtained. |
| --- | --- |

1.

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

2.

| 3. | The mining usufruct rights shall expire if the concession expires, is withdrawn or becomes invalid, irrespective of the reason. |
| --- | --- |

3.

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

(a)

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

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

(b)

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

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

(c)

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

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

(d)

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

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

(e)

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

| — | subject to the provisions of paragraph 2. |
| --- | --- |

—

subject to the provisions of paragraph 2.

| 2. | If the date for payment of the fee due for a given year of mining usufruct falls between 1 January and 1 March, the Holder of Mining Usufruct Rights shall pay the fee by 1 March. However, if the fee is subject to indexation in accordance with paragraphs 3 to 5, the Holder of Mining Usufruct Rights shall pay it no earlier than the date on which the index referred to in paragraph 3 is announced, after taking that index into account. |
| --- | --- |

2.

| 3. | The fee specified in paragraph 1 shall be indexed to the average annual consumer price indices set for the period from the conclusion of the Agreement until the year preceding the date for payment of the fee, as announced by the President of the Central Statistical Office in the Polish Official Gazette (Monitor Polski). If this index for a given year is less than or equal to zero, there shall be no indexation for that year. |
| --- | --- |

3.

| 4. | If the date for payment of the fee falls in the same calendar year as that in which the Agreement was concluded, the fee shall not be indexed. |
| --- | --- |

4.

| 5. | If the Agreement was concluded and took effect in the year preceding the year in which the date for payment of the fee falls, the fee shall not be indexed if the Holder of Mining Usufruct Rights pays it by the end of the calendar year in which the Agreement is concluded and takes effect. |
| --- | --- |

5.

| 6. | If the Holder of Mining Usufruct Rights loses the mining usufruct rights established under the Agreement before the time limit specified in Section 3(2) expires, the Holder of Mining Usufruct Rights shall be required to pay the fee for the entire year of usufruct in which these rights were lost. If, however, the mining usufruct rights are lost as a result of the concession being withdrawn or for the reasons specified in Section 10(1), (3) or (4), the Holder of Mining Usufruct Rights shall pay the fee for the entire usufruct period specified in Section 3(1) and (2), indexed in accordance with paragraph 3 and without prejudice to the contractual penalty referred to in Section 10(2). The fee shall be paid within 30 days from the date on which the mining usufruct rights were lost. The loss of usufruct rights shall not release the Holder of Mining Usufruct Rights from environmental obligations relating to the subject of the mining usufruct rights, in particular obligations relating to the protection of deposits. |
| --- | --- |

6.

| 7. | The Holder of Mining Usufruct Rights shall pay the fee for the mining usufruct rights into the bank account of the Ministry of the Environment at the Warsaw branch of the National Bank of Poland, No 07 1010 1010 0006 3522 3100 0000, giving the following message on the transfer order: ‘Establishment of mining usufruct rights in connection with the granting of a concession for the prospection and exploration of oil and natural gas deposits and the extraction of oil and natural gas in the “Wejherowo” area’.
  The date of payment shall be the date on which the State Treasury’s account is credited. |
| --- | --- |

7.

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

| 8. | The fee specified in paragraph 1 shall not be subject to tax on goods and services (VAT). If legislation is amended with the result that the activities which are the subject of the Agreement are subject to taxation, or if the interpretation of legislation changes with the result that those activities are subject to VAT, the amount of the fee shall be increased by the amount of tax due. |
| --- | --- |

8.

| 9. | The State Treasury shall notify the Holder of Mining Usufruct Rights in writing of changes in the number of the account referred to in paragraph 7. |
| --- | --- |

9.

| 10. | The fee for the establishment of mining usufruct rights shall be payable to the State Treasury irrespective of the income which the Holder of Mining Usufruct Rights earns from using those rights. |
| --- | --- |

10.

| 11. | The Holder of Mining Usufruct Rights shall send the State Treasury, within seven days from the payment date, copies of proof of payment of the fee referred to in paragraph 1 for the establishment of the mining usufruct rights. |
| --- | --- |

11.

Section 8

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

1.

| 2. | If, within 30 days of the date of the investment decision specifying the conditions for the extraction of oil or natural gas the addendum referred to in paragraph 1 has not been concluded, the mining usufruct rights shall expire. |
| --- | --- |

2.

Section 9

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

Section 10

| 1. | If the Holder of Mining Usufruct Rights infringes obligations laid down in the Agreement, the State Treasury may, subject to the provisions of paragraphs 3 and 4, terminate the Agreement with immediate effect, without the Holder of Mining Usufruct Rights being entitled to make any property claims. However, the Agreement may not be terminated if the Holder of Mining Usufruct Rights has infringed obligations under the Agreement owing to force majeure. |
| --- | --- |

1.

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

2.

| 3. | If the Holder of Mining Usufruct Rights delays payment of the fee by more than seven days beyond the deadlines specified in Section 7(1) or (2), the State Treasury shall request the Holder of Mining Usufruct Rights to pay the outstanding fee within seven days from the receipt of the request, failing which the Agreement will be terminated with immediate effect. |
| --- | --- |

3.

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

4.

| 5. | The Holder of Mining Usufruct Rights shall be bound by the Agreement until the date of expiry, withdrawal or invalidity of the concession and may not terminate the Agreement. |
| --- | --- |

5.

| 6. | The Agreement shall be terminated in writing, failing which the termination will be invalid. |
| --- | --- |

6.

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

7.

| 8. | The State Treasury reserves the right to seek compensation in excess of the amount of contractual penalties on general terms if the amount of damage incurred by the State Treasury exceeds the contractual penalties. |
| --- | --- |

8.

Section 11

| 1. | The Parties have provided the following contact details for any correspondence:






  (1) | State Treasury:
  Ministry of the Environment, ul. Wawelska 52/54, 00-922 Warsaw, POLAND; |
| --- | --- | --- |

1.

(1)

State Treasury:

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

| (2) | Holder of Mining Usufruct Rights:
  (address). |
| --- | --- |

(2)

Holder of Mining Usufruct Rights:

(address).

| 2. | The Parties are obliged to inform each other in writing without delay of any change to the contact details indicated in paragraph 1. Such a change shall not require an addendum to the Agreement. Correspondence sent to a Party’s most recently provided contact details shall be deemed to have been effectively served on the other Party. |
| --- | --- |

2.

| 3. | Each of the Parties shall serve correspondence on the other Party in person, by courier or by registered letter using the contact details most recently provided by the Party. |
| --- | --- |

3.

| 4. | Registered letters sent to the most recently provided address of a Party and returned by the post office or courier company owing to the addressee not having collected it on time shall be treated as having been effectively served once fourteen days have passed from the first delivery attempt. |
| --- | --- |

4.

Section 12

| 1. | The parties shall not be liable for failure to comply with obligations under the Agreement resulting from force majeure if it can be proven that damage caused by force majeure influenced the failure to comply with the obligations. ‘Force majeure’ shall mean an external event that the Parties could not have predicted or prevented that makes it impossible for the Agreement to be implemented in whole or in part, permanently or for a given period, which a Party could not have counteracted by exercising due diligence and which did not result from errors or negligence on the part of the Party affected by it. |
| --- | --- |

1.

| 2. | In the event of force majeure, the Parties shall immediately make every effort to agree on a course of action. |
| --- | --- |

2.

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

Amendments to the Agreement shall be made in writing, failing which they will be invalid.

Section 19

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

State Treasury

Holder of Mining Usufruct Rights

---