Notification by the Hungarian Government under Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons (Text with EEA relevance )
Date: 2007-05-04
Institutions: Hungary
Subjects: Hungary, energy site, exchange of information, exploitation of resources, hydrocarbon, mineral prospecting

C 100/14

EN

Official Journal of the European Union

4.5.2007

Notification by the Hungarian Government under Directive 94/22/EC of the European Parliament
and of the Council of 30 May 1994 on the conditions for granting and using authorizations for the
prospection, exploration and production of hydrocarbons

(Text with EEA relevance)

(2007/C 100/11)

According to Articles 3 and 5 of the Directive 94/22/EC of the European Parliament and of the Council of
30 May 1994 on the conditions for granting and using authorizations for the prospection, exploration and
production of hydrocarbons (1) (hereinafter referred to as ‘the Directive’), the Hungarian Government hereby
notifies the European Commission as follows.

The Hungarian authority responsible for implementing Article 3 of the Directive — taking into account the
provisions of Act XLVIII. of 1993 on mining — is the Mining and Geological Bureau of Hungary.

In Hungary the Mining and Geological Bureau of Hungary and its regional organizations, the district mining
inspectorates, are responsible for the public administration tasks concerning mining. The Minister of
Economy and Transport supervises the Mining and Geological Bureau of Hungary, and the Minister makes
the decisions about the designation of concession areas, calls for concession tenders, and the conclusion of
concession contracts, taking into account the relevant legal provisions in the Act and other legislation. These
decisions of the Minister of Economy and Transport are prepared by the Mining and Geological Bureau of
Hungary.

Based on the power set out in Act XLVIII. of 1993 on mining, the Hungarian Government has designated
the seats and competence areas of the district mining inspectorates of the Mining and Geological Bureau of
Hungary in Government Decree 267/2006. (XII. 20.) on the Mining and Geological Bureau of Hungary. In
matters concerning mining, with the defined exemptions, the authorities in the first instance are the region-
ally competent district mining inspectorates; and the authority in the second instance is the Mining and
Geological Bureau of Hungary.

Act XVI. of 1991 on concessions declares that a concession contract can only be terminated in the cases set
out in Act XVI. of 1991 on concessions, and based on the conditions set out in the concession contract. If a
concession contract is terminated on other grounds, it will be regarded as breach of contract, and the party
in breach can be sued. According to Act XLVIII. of 1993 on mining, if the licensee of the concession does
not begin production by the deadline set out in the concession contract, the licensee shall pay compensation
to supplement the outstanding mining supplies set out in the concession contract; if this obligation is not
met, the concession is terminated with the power of law. In the aforementioned cases the area concerned by
the concession contract goes back to the free areas, and according to the provisions of Act XLVIII. of 1993
on mining, calling for a call for concession tenders may be issued or administrative action taken.

In accordance with Article 3(1) of the Directive, Hungary follows the procedure laid down in Article 3(2) a)
of the Directive.

According to Act XLVIII. of 1993 on mining, a public call for tender shall be published in the Official Journal
of the European Union at least 90 days before the closing date for submitting applications.

In accordance with Article 3(3) of
geographic areas are suitable for the prospection, exploration and production of hydrocarbons,

in the territory of

the Directive,

the Republic of Hungary those

— which are not subject to previously concluded concession contracts,

— on which the concession has been terminated by the power of law,

— which are not affected by an already allocated (existing) mining right,

— which exploration areas were given back by the licensees,

i.e. the areas represented in white on the enclosed map. The data on free areas and the areas affected by
concessions and mining rights can be found on the website of the Mining and Geological Bureau of
Hungary (www.mbh.hu).

Information on conditions and requirements in the case of authorizations granted on the basis of Article 3
(3) of the Directive and other information are available from the Mining and Geological Bureau of Hungary
(H-1051 Budapest, Arany János utca 25; postal address: H-1372 Budapest, PO BOX 477; telephone: (36-1)
301 29 47; fax: (36-1) 301 29 03; e-mail: hivatal@mbh.hu).

(1) OJ L 164, 30.6.1994, p. 3.

4.5.2007

EN

Official Journal of the European Union

C 100/15

Applications for gaining hydrocarbon exploration right on free areas are to be submitted to the competent
district mining inspectorate. When granting exploration rights, the district mining inspectorate consults the
authorities listed in the legislation in the proceedings for approving technical operating plans. In the cases
set out in the legislation, the authorities can impose conditions, restrict or even prohibit the authorization
of exploration activity even if exploration rights have been granted.

Applications will be considered by the district mining inspectorates — taking into account the provisions of
Act XLVIII. of 1993 on mining, and of the Governmental Decree 203/1998. on the enforcement of certain
provisions of Act XLVIII. of 1993 on mining — in the order that they are received in.

In accordance with Article 5(1) of the Directive, the criteria used when granting authorizations, without
prejudice to the provisions set out in Act XVI. of 1991 on concessions, are the following:

a) the financial resources of the applicant;

b) the technical competence and experience of the applicant;

c) the work programme proposed by the applicant;

d) where relevant, any previous performance of the applicant under any other previous authorization;

e) if the authorization is put up for sale, the price which the entity is prepared to pay in order to obtain the

authorization.

According to Act XLVIII. of 1993 on mining, calls for tender shall contain the concrete criteria for evalua-
tion of submitted tenders. According to Act XLVIII. of 1993 on mining, after the evaluation of the submitted
tenders, the Minister of Economy and Transport shall decide on the award of concessions.

In accordance with Article 5(2) of the Directive, information on the conditions and requirements concerning
the pursuit or termination of the activity is given in calls for tender.

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