EN Official Journal of the European Union C 66/6

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

(2017/C 66/06)

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

SECTION I: LEGAL BASIS

1. Article 49h(2) of the Geological and Mining Law Act (Dziennik Ustaw (Journal of Laws) 2016, item 1131)

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)

SECTION II: ENTITY INVITING BIDS

Name: Ministerstwo Środowiska [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 natural gas deposits and the extraction of natural gas in the ‘Piła’ area, concession blocks 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:

Point No X [PL-1992] Y [PL-1992] 1 583 341,110 378 925,810 2 572 026,540 378 791,780 3 572 856,780 349 419,600 4 580 980,150 332 427,200 5 601 193,830 333 133,140 6 600 818,160 345 067,120

The surface area of the vertical projection of the area covered by this bidding procedure is 942,19 km2.

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

Zachodniopormorskie Province

Wałcz district: municipality of Wałcz (3,92 % of the area);

Wielkopolskie Province

Złotów district: municipality of Krajenka (2,00 %);

Piła district: municipalities of Szydłowo (18,55 %), Piła (10,89 %), Kaczory (13,90 %), Wysoka (0,40 %), Miasteczko Krajeńskie (7,38 %), Białośliwie (3,50 %), Ujście (9,32 %);

Czarnków-Trzcianka district: municipalities of Trzcianka (9,50 %), Czarnków (0,14 %);

Chodzież district: town of Chodzież (0,25 %), municipalities of Chodzież (10,09 %), Margonin (1,37 %), Szamocin (8,69 %);

Wągrowiec district: municipality of Gołańcz (0,09 %).

The aim of the works to be carried out in Permian formations is to document and extract 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 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. The number of bids and names of the bidders will be presented at a public meeting of the bid evaluation committee within 14 days from the expiry of the period for the submission of bids.

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) and (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; 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 scheduling 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 scheduling 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 Cenozoic Zechstein + Mesozoic Carboniferous + Rotliegend Petroleum systems I – conventional II – unconventional Source rocks I – Carboniferous mudstones and claystones II – Carboniferous mudstones and claystones Reservoir rocks I – Rotliegend sandstones II – Rotliegend sandstones Seal rocks I – Zechstein evaporites II – clayey sediments + capillary water Thickness of overburden I – 4 500 -4 900 m II – 4 900 -5 100 m Trap type I – structural II – stratigraphic Deposits identified in the vicinity (NG – natural gas) I – deposits in the shallower part of the basin (2 500 -3 500 m) Grodzisk Wielkopolski (NG)– discovered in 1976; exploited 1978-2004; cumulative production (27 years): 1 966,65 million m3 Radlin (NG)– discovered in 1986; cumulative production (24 years): 7 843,55 million m3; production in 2015: 178,94 million m3; reserves and resources: 3 226,45 million m3 (industrial: 1 442,23 million m3) Paproć (NG)– discovered in 1985; cumulative production (28 years): 4 230,4 million m3; production in 2015: 182,45 million m3; reserves and resources: 3 438,80 million m3 (industrial: 3 228,63 million m3) Młodasko (NG)– discovered in 1985; cumulative production (24 years): 451,9 million m3; production in 2015: 27,28 million m3; reserves and resources: 44,10 million m3 (industrial: 43,86 million m3) II – no tight gas discovered in the Rotliegend 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) Benchmark and offset wells (TVD) benchmark wells: Piła 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) 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 Law 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 Law Act.

8) 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 II duration: 12 months

scope: executing 2D seismic surveys (100 km)

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 5 500 m, with mandatory coring of prospective intervals

Stage IV duration: 12 months

scope: analysing the data obtained

9) 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,

— an extraction phase, 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:

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 land use, environmental protection, agricultural land and forests, nature, waters and waste.

The performance of activities relating to the prospection, exploration and extraction of hydrocarbons shall take account of constraints arising from various nature conservation measures, a map of which can be found on the website of the General Directorate for Environmental Protection (http://geoserwis.gdos.gov.pl).

11) 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:

The minimum amount of the fee for establishing mining usufruct rights for the ‘Piła’ area during the five-year base period is PLN 200 234,22 (in words: two hundred thousand two hundred and thirty-four zlotys and twenty-two groszy) 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 Law Act).

13) 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; 2) the subject of the bid, together with a description defining 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; 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 timetable, broken down into years, for geological works, including geological operations, and the scope of such works; 6) the scope and timetable 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; 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; 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; 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; 14) the proposed technology for conducting geological works, including geological operations, or mining operations; 15) the proposed amount of remuneration 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; 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; 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.

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; 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; 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.

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.

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.

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:

Bidders are required to lodge a deposit of PLN 1 000 (in words: one thousand zlotys) before the expiry of the the time limit for the submission of bids in the account of the Ministry of the Environment – NBP O/O Warsaw No 93 1010 1010 0006 3513 9120 0000.

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) 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.

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's Public Information Bulletin website (www.bip.mos.gov.pl) and from

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