EN Official Journal of the European Union C 239/4

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

(2016/C 239/03)

PUBLIC INVITATION TO BID FOR A CONCESSION FOR THE PROSPECTION AND EXPLORATION OF NATURAL GAS DEPOSITS AND THE EXTRACTION OF 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) 2015, item 196, as amended)

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: 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 ‘Bytów’ area, concession blocks 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:

Point No X [PL-1992] Y [PL-1992] 1 717 727,830 420 880,037 2 710 216,130 420 752,340 3 709 994,910 434 842,340 4 698 409,340 434 721,120 5 682 184,522 434 676,546 6 682 361,035 425 652,512 7 715 272,850 395 605,440 8 716 494,070 396 555,860 9 715 724,310 399 111,560 10 718 080,130 401 575,960 11 718 106,130 402 821,010 12 715 616,010 404 551,170 13 715 760,230 406 358,870 14 719 743,146 407 446,849 15 719 941,330 411 157,160 16 717 910,170 410 935,090

The surface area of the vertical projection of the area covered by this bidding procedure is 779,97 km2.

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

Słupsk district: municipality of Dębnica Kaszubska (0,46 % of the area);

Bytów district: municipalities of Czarna Dąbrówka (13,34 %), Bytów (5,61 %), Parchowo (16,81 %) and Studzienice (2,75 %);

Kościerzyna district: municipalities of Dziemiany (3,44 %), Lipusz (10,37 %) and Kościerzyna (24,33 %), town of Kościerzyna (1,54 %) and municipality of Stara Kiszewa (0,03 %);

Kartuzy district: municipalities of Stężyca (7,73 %), Sulęczyno (12,21 %), Sierakowice (1,37 %) and Chmielno (0,011 %).

The aim of the works to be carried out in Palaeozoic 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.

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: Bytów location: onshore; concession blocks 47, 48, 67 and 68; Type of deposit unconventional and conventional natural gas deposits 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 borehole) 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 have been identified in this interval: Żarnowiec W (O) – discovered in 1990; cumulative production: 4 160 tonnes; production in 2014: 50 tonnes; reserves and resources 17 840 tonnes (industrial 3 880 tonnes) Dębki-Żarnowiec (O, two separate deposits since 1995, for which aggregate date are given here) – discovered in 1977; cumulative production 39 120 tonnes; production in 2014: 810 tonnes; reserves and resources: 51 680 tonnes (industrial 7 590 tonnes) Białogóra E (O) – discovered in 1995; cumulative production over 11 years: 1 410 tonnes; production in 2014: nil; reserves and resources: nil (industrial: 380 tonnes) Seismic surveys completed (owner) 2012: Seven 2D profile surveys (Indiana Investments Sp. z o. o.) Benchmark and offset wells (TVD) benchmark wells: Bytów IG-1 (2 569,70 m), Gapowo B-1/1A (4 299,79 m) offset wells: Kościerzyna IG-1 (5 202,0 m), Lębork IG-1 (3 310,0 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) or drilling one borehole to a maximum depth of 5 000 m, with mandatory coring of prospective intervals

Stage III duration: 24 months

scope: drilling one borehole to a maximum depth of 5 000 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 remove 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.

During the assessment of the draft decision and the geological data pack, an objection was raised by the municipality of Parchowo regarding the siting of the prospection and exploration works for the planned concession within its boundaries.

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 ‘Bytów’ area during the five-year base period is PLN 165 759,22 (in words: one hundred and sixty-five thousand seven hundred and fifty-nine zlotys and twenty-two grosz) per annum. The annual the 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 the 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 the 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 the 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; 16) the proposed form of providing security; 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 the 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 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) 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 website (www.mos.gov.pl) and from the

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