# C_2018163EN.01000101.xml

| 8.5.2018 | EN | Official Journal of the European Union | C 163/1 |
| --- | --- | --- | --- |

8.5.2018

EN

Official Journal of the European Union

C 163/1

---

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

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

(2018/C 163/01)

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

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

SECTION I: LEGAL BASIS

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

1.

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

Dziennik Ustaw

| 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.

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

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

3.

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

SECTION II: ENTITY INVITING BIDS

Name: Ministry of the Environment

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

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

Website: www.mos.gov.pl

SECTION III: SUBJECT OF THE PROCEDURE

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

Type of activities for which the concession is to be granted

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

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

Area within which the activities are to be conducted

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

| Point No | X [PL-1992] | Y [PL-1992] |
| --- | --- | --- |
| 1 | 234 844,361 | 560 392,571 |
| 2 | 236 207,601 | 566 125,529 |
| 3 | 236 033,680 | 566 047,350 |
| 4 | 235 039,210 | 566 833,730 |
| 5 | 234 435,410 | 567 891,740 |
| 6 | 234 919,040 | 569 098,080 |
| 7 | 236 899,729 | 569 036,197 |
| 8 | 237 511,440 | 571 608,680 |
| 9 | 238 239,180 | 593 185,130 |
| 10 | 235 643,890 | 601 614,750 |
| 11 | 232 987,600 | 601 605,370 |
| 12 | 232 886,196 | 599 665,936 |
| 13 | 234 314,529 | 599 626,240 |
| 14 | 234 138,401 | 593 300,605 |
| 15 | 232 471,033 | 593 346,944 |
| 16 | 231 635,971 | 587 283,158 |
| 17 | 231 660,823 | 587 179,604 |
| 18 | 231 619,154 | 587 161,046 |
| 19 | 231 446,800 | 585 909,500 |
| 20 | 231 067,402 | 576 041,636 |
| 21 | 231 535,859 | 574 373,847 |
| 22 | 231 062,273 | 574 226,570 |
| 23 | 230 992,755 | 574 100,127 |
| 24 | 230 896,960 | 571 608,570 |
| 25 | 230 642,809 | 560 453,662 |

Point No

X [PL-1992]

Y [PL-1992]

1

234 844,361

560 392,571

2

236 207,601

566 125,529

3

236 033,680

566 047,350

4

235 039,210

566 833,730

5

234 435,410

567 891,740

6

234 919,040

569 098,080

7

236 899,729

569 036,197

8

237 511,440

571 608,680

9

238 239,180

593 185,130

10

235 643,890

601 614,750

11

232 987,600

601 605,370

12

232 886,196

599 665,936

13

234 314,529

599 626,240

14

234 138,401

593 300,605

15

232 471,033

593 346,944

16

231 635,971

587 283,158

17

231 660,823

587 179,604

18

231 619,154

587 161,046

19

231 446,800

585 909,500

20

231 067,402

576 041,636

21

231 535,859

574 373,847

22

231 062,273

574 226,570

23

230 992,755

574 100,127

24

230 896,960

571 608,570

25

230 642,809

560 453,662

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

| Point No | X [PL-1992] | Y [PL-1992] |
| --- | --- | --- |
| 26 | 236 852,989 | 574 680,836 |
| 27 | 236 886,191 | 575 398,936 |
| 28 | 235 707,297 | 575 415,667 |
| 29 | 235 696,650 | 574 665,742 |
| 30 | 236 756,068 | 574 650,707 |

Point No

X [PL-1992]

Y [PL-1992]

26

236 852,989

574 680,836

27

236 886,191

575 398,936

28

235 707,297

575 415,667

29

235 696,650

574 665,742

30

236 756,068

574 650,707

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

2

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

| — | municipalities: Mogilany, Kłaj, Biskupice, Gdów, Bochnia, |
| --- | --- |

—

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

| — | towns and municipalities: Skawina, Świątniki Górne, Wieliczka, Niepołomice, |
| --- | --- |

—

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

| — | towns: Bochnia, Kraków. |
| --- | --- |

—

towns: Bochnia, Kraków.

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

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

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

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

Official Journal of the European Union

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

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

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

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

| 30 % | — | financial capacities offering an adequate guarantee that activities relating to, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons will be carried out, and in particular the sources and methods of financing the intended activities, including the share of own funds and external financing; |
| --- | --- | --- |
| 25 % | — | technical capacities for, respectively, the prospection and exploration of hydrocarbon deposits and the extraction of hydrocarbons, and in particular the availability of appropriate technical, organisational, logistical and human resources potential; |
| 20 % | — | scope and schedule of the geological works, including geological operations, or mining operations proposed; |
| 10 % | — | experience in the prospection and exploration of hydrocarbon deposits or the extraction of hydrocarbons, ensuring safe operation, the protection of human and animal life and health, and environmental protection; |
| 10 % | — | the proposed technology for conducting geological works, including geological operations, or mining operations, using innovative elements developed for this project; |
| 5 % | — | scope and schedule of the mandatory collection of samples obtained during geological operations, including drill cores. |

30 %

—

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

25 %

—

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

20 %

—

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

10 %

—

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

10 %

—

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

5 %

—

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

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

(5)   Minimum scope of geological information

Minimum scope of geological information

| Concession data | name of area: Bochnia
  location: onshore; concession blocks 393, 412 and 413 |
| --- | --- |
| Type of deposit | conventional oil and natural gas deposits |
| Structural levels | Carpathian orogen, West European platform |
| Petroleum systems | I – Paleozoic-Mesozoic bedrock petroleum system
  II – petroleum system developed in the Carpathian nappes;
  III – Carpathian Foredeep autochthonous Miocene petroleum system; |
| Source rocks | I – Lower Carboniferous carbonate and clastic rocks, Lower Carboniferous clastic rocks
  (Productive Carboniferous in paralic and limnic series), (?) Middle Jurassic claystones and mudstones;
  II – Lower Cretaceous Cieszyn, Wierzowice, Grodzisk and Lgota shales,
  Oligocene menilite shales;
  III – Carpathian and Lower Badenian fine-grained clastic rocks |
| Reservoir rocks | I — Cambrian sandstones; Lower Devonian limestones and Dolomites; Upper Devonian and Lower Carboniferous limestones and Dolomites; Upper Jurassic limestones;
  II – flysch of Silesian Nappe: Grodzisk, Wierzowice, Lgota and Istebna strata, Ciężkowickie and Menilite sandstones, Krosno strata, flysch of Subsilesian Nappe: Wierzowice and Lgota strata
  III – Carpathian Foredeep autochthonous Miocene clastics (Badenian and Sarmatian) |
| Seal rocks | I, III – evaporites which seal traps in the Paleozoic-Mesozoic bedrock system, fine-grained Carpathian Foredeep autochthonous Miocene formations
  II – fine-grained flysch formations which isolate hydrocarbons present in Carpathian Foredeep Miocene rocks and coarse-grained horizons within the flysch succession |
| Thickness of overburden | I – autochthonous Miocene claystones, Badenian evaporites and local rocks of the Carpathian flysch (Silesian and Subsilesian nappes): 500-1 000 m
  II – impermeable fine-grained flysch formations: 0-100 m
  III – argilaceous intra-Miocene lithosomes, flysch of Subsilesian and Silesian nappes: 100-500 m |
| Trap type | I – structural, stratigraphic
  II – structural or structural-lithological, lithological
  III – compaction, structural anticlines |
| Deposits identified in the vicinity (NG — natural gas; OI — oil) | Grabina – Nieznanowice (NG), discovered in 1972; cumulative production (37 years) 161 250 000 m3; balance sheet reserves and resources: 328 000 000  m3, production in 2015: 1 960 000 m3, industrial resources: 12 960 000 m3; non-industrial: 431 770 000 m3.
  Grabina – Nieznanowice S (NG), discovered in 1987; cumulative production (22 years) 17 250 000 m3; balance sheet reserves and resources: 205 740 000  m3, production in 2015: 1 960 000 m3, industrial resources: 110 540 000 m3; non-industrial: 95 200 000 m3.
  Łapanów (NG), discovered in 2008, cumulative production (2 years) 18 004 000 m3; in 2015: production 17 920 000 m3; reserves and resources (industrial: 307 280 000 m3).
  Łąkta (NG, OI) – discovered in 1971, cumulative production: gas from gas horizons (40 years) 96 150 000 m3, gas from condensate horizons (28 years) 721 380 000 m3, condensate (30 years) 50 540 tonnes; in 2015: production — gas 3 020 000 m3, oil — none, reserves and resources — gas 211 720 000 m3, condensate 4 580 tonnes.
  Raciborsko (NG), discovered in 1978; cumulative production (37 years) 25 750 000 m3; production in 2015: 220 000 m3, balance sheet reserves and resources: 431 650 000  m3; industrial resources: 16 310 000 m3. |
| Seismic surveys completed (rightholder) | 1976 Brzesko-Pilzno-Olszyny Geofizyka Kraków Sp. z o.o., Kraków (Treasury)
  1977 Bochnia-Czchów-Tarnów, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury)
  1978 Górnośląskie Zagłębie Węglowe, Przeds, Bad, Geofiz, Warsaw, (Treasury)
  1978 Żywiec-Wadowice-Gdów, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury)
  1992 Dobczyce-Gdów-Wolica, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)
  1993 Liplas-Grobla-Żukowice, [Liplas-Grobla], Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)
  1993 Liplas-Puszcza, [Liplas-Grobla-Żukowice], Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)
  1994 Lachowice-Myslenice, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)
  2003 Puszcza-Krzeczów-Borek, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)
  2004 Kamyk-Niepołomice, Geofizyka Kraków Sp. z o.o., Kraków, (PGNiG, Warsaw)
  1987–1989 Niepołomice-Gdów-Myślenice, Geofizyka Kraków Sp. z o.o., Kraków, (Treasury) |
| Benchmark wells (MD) | Cichawa 8 1 (1 029 m)
  Cikowice 1 (1 465,5 m)
  Trąbki 1 (862 m)
  Mogilany 1 (2 500 m) |

Concession data

name of area: Bochnia

location: onshore; concession blocks 393, 412 and 413

Type of deposit

conventional oil and natural gas deposits

Structural levels

Carpathian orogen, West European platform

Petroleum systems

I – Paleozoic-Mesozoic bedrock petroleum system

II – petroleum system developed in the Carpathian nappes;

III – Carpathian Foredeep autochthonous Miocene petroleum system;

Source rocks

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

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

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

Oligocene menilite shales;

III – Carpathian and Lower Badenian fine-grained clastic rocks

Reservoir rocks

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

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

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

Seal rocks

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

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

Thickness of overburden

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

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

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

Trap type

I – structural, stratigraphic

II – structural or structural-lithological, lithological

III – compaction, structural anticlines

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

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

3

3

3

3

3

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

3

3

3

3

3

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

3

3

3

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

3

3

3

3

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

3

3

3

3

Seismic surveys completed (rightholder)

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

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

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

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

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

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

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

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

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

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

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

Benchmark wells (MD)

Cichawa 8 1 (1 029 m)

Cikowice 1 (1 465,5 m)

Trąbki 1 (862 m)

Mogilany 1 (2 500 m)

(6)   Commencement date of activities

Commencement date of activities

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

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

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

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

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

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

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

| | Stage I duration: 12 months
  scope: interpreting and analysing archival geological data |
| --- | --- |

Stage I duration: 12 months

scope: interpreting and analysing archival geological data

| | Stage II duration: 12 months
  scope: geophysical surveys - 2D seismic test (excitation line 50 km in length) or 3D seismic test (excitation area 50 km2) |
| --- | --- |

Stage II duration: 12 months

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

2

| | Stage III duration: 24 months
  scope: drilling one borehole to a maximum depth of 4 500 m, with mandatory coring of prospective intervals |
| --- | --- |

Stage III duration: 24 months

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

| | Stage IV duration: 12 months
  scope: analysing the data obtained |
| --- | --- |

Stage IV duration: 12 months

scope: analysing the data obtained

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

Period for which the concession is to be granted

The concession period is 10 years, including:

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

—

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

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

—

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

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

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

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

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

Model agreement on the establishment of mining usufruct rights

The model agreement is attached as an annex hereto.

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

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

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

Monitor Polski

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

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.

Bids should specify:

1)

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

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

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 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 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 Act; |
| --- | --- |

16)

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

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






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

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.

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

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






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

3.

The following documents are to be enclosed with bids:

1)

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

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

2)

proof that a deposit has been lodged;

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

3)

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

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

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.

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

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

5.

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

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

6.

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

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

7.

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

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

8.

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

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

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

Bid evaluation committee

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

IV.2)   Additional explanations

Additional explanations

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

Biuletyn Informacji Publicznej

IV.3)   Additional information

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

Pakiet danych geologicznych

| 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 ‘Bochnia’ area, hereinafter referred to as ‘the Agreement’

concluded at Warsaw on ... between:

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

and

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

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

worded as follows:

Section 1

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







  No | X | Y |
| --- | --- | --- | --- |
| 1 | 234 844,361 | 560 392,571 |
| 2 | 236 207,601 | 566 125,529 |
| 3 | 236 033,680 | 566 047,350 |
| 4 | 235 039,210 | 566 833,730 |
| 5 | 234 435,410 | 567 891,740 |
| 6 | 234 919,040 | 569 098,080 |
| 7 | 236 899,729 | 569 036,197 |
| 8 | 237 511,440 | 571 608,680 |
| 9 | 238 239,180 | 593 185,130 |
| 10 | 235 643,890 | 601 614,750 |
| 11 | 232 987,600 | 601 605,370 |
| 12 | 232 886,196 | 599 665,936 |
| 13 | 234 314,529 | 599 626,240 |
| 14 | 234 138,401 | 593 300,605 |
| 15 | 232 471,033 | 593 346,944 |
| 16 | 231 635,971 | 587 283,158 |
| 17 | 231 660,823 | 587 179,604 |
| 18 | 231 619,154 | 587 161,046 |
| 19 | 231 446,800 | 585 909,500 |
| 20 | 231 067,402 | 576 041,636 |
| 21 | 231 535,859 | 574 373,847 |
| 22 | 231 062,273 | 574 226,570 |
| 23 | 230 992,755 | 574 100,127 |
| 24 | 230 896,960 | 571 608,570 |
| 25 | 230 642,809 | 560 453,662 |

1.

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

No

X

Y

1

234 844,361

560 392,571

2

236 207,601

566 125,529

3

236 033,680

566 047,350

4

235 039,210

566 833,730

5

234 435,410

567 891,740

6

234 919,040

569 098,080

7

236 899,729

569 036,197

8

237 511,440

571 608,680

9

238 239,180

593 185,130

10

235 643,890

601 614,750

11

232 987,600

601 605,370

12

232 886,196

599 665,936

13

234 314,529

599 626,240

14

234 138,401

593 300,605

15

232 471,033

593 346,944

16

231 635,971

587 283,158

17

231 660,823

587 179,604

18

231 619,154

587 161,046

19

231 446,800

585 909,500

20

231 067,402

576 041,636

21

231 535,859

574 373,847

22

231 062,273

574 226,570

23

230 992,755

574 100,127

24

230 896,960

571 608,570

25

230 642,809

560 453,662

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

| No | X | Y |
| --- | --- | --- |
| 26 | 236 852,989 | 574 680,836 |
| 27 | 236 886,191 | 575 398,936 |
| 28 | 235 707,297 | 575 415,667 |
| 29 | 235 696,650 | 574 665,742 |
| 30 | 236 756,068 | 574 650,707 |

No

X

Y

26

236 852,989

574 680,836

27

236 886,191

575 398,936

28

235 707,297

575 415,667

29

235 696,650

574 665,742

30

236 756,068

574 650,707

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

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

2.

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

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






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

3.

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

1)

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

| 2) | in the rest of the area, carry out any operations and activities that are necessary in order to gain access to the Cambrian, Devonian, Permian, Triassic, Jurassic, Cretaceous, Palaeogene and autochthonous Miocene formations. |
| --- | --- |

2)

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

| 4. | The surface area of the vertical projection of the area described above is 218,90 km2. |
| --- | --- |

4.

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

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

5.

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

Section 2

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

Section 3

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

1.

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

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

2.

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

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

3.

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

Section 4

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

Section 5

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

Section 6

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

Section 7

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






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

1.

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

(a)

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

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

(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.

| 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.

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

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

3.

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

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

4.

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

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

5.

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

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

6.

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

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

7.

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

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

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

8.

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

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

9.

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

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

10.

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

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

11.

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

Section 8

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

1.

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

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

2.

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

Section 9

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

Section 10

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

1.

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

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

2.

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

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

3.

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

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

4.

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

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

5.

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

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

6.

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

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

7.

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

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

8.

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

Section 11

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






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

1.

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

1)

Treasury:

| 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.

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

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

3.

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

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

4.

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

Section 12

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

1.

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

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

2.

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

Section 13

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

Section 14

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

Section 15

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

Section 16

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

Section 17

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

Section 18

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

Section 19

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

Treasury

Holder of Mining Usufruct Rights

---