CELEX: 52006PC0709
Language: lt
Date: 2006-11-14
Title: Pasiūlymas Tarybos sprendimas dėl Bendrijos pozicijos Energijos bendrijos Ministrų taryboje dėl tam tikrų su Energijos bendrijos biudžetu susijusių procedūrinių klausimų, dėl šalių priėmimo stebėtojų teisėmis procedūrinių taisyklių ir Energijos bendrijos stebėtojų teisių ir pareigų bei dėl Moldovos, Ukrainos, Norvegijos ir Turkijos priėmimo į Energijos bendriją stebėtojų teisėmis

EUROPOS BENDRIJŲ KOMISIJA

                                                          Briuselis, 14.11.2006
                                                          KOM(2006) 709 galutinis

                                             Pasiūlymas

                                    TARYBOS SPRENDIMAS

     dėl Bendrijos pozicijos Energijos bendrijos Ministrų taryboje dėl tam tikrų su Energijos
         bendrijos biudžetu susijusių procedūrinių klausimų, dėl šalių priėmimo stebėtojų
      teisėmis procedūrinių taisyklių ir Energijos bendrijos stebėtojų teisių ir pareigų bei dėl
       Moldovos, Ukrainos, Norvegijos ir Turkijos priėmimo į Energijos bendriją stebėtojų
                                              teisėmis

                                        (pateiktas Komisijos)

LT                                                                                                 LT
 ---pagebreak---                                AIŠKINAMASISI MEMORANDUMAS

     2006 m. lapkričio 17 d. įvyks pirmasis Energijos bendrijos Ministrų tarybos posėdis.

     Posėdyje ypatingas dėmesys bus skiriamas Energijos bendrijos sutartyje numatytų
     procedūrinių aktų, kurių reikia Energijos bendrijos sklandžiai veiklai vykdyti ir funkcionuoti,
     priėmimui. Remiantis Energijos bendrijos sutarties 88 straipsniu, su biudžeto klausimais
     susijusius teisės aktus rengia ir Energijos bendrijai pateikia Europos Komisija.

     Kitas Ministrų tarybos posėdžio darbotvarkės punktas yra Moldovos, Ukrainos, Norvegijos ir
     Turkijos priėmimas į Energijos bendriją stebėtojų teisėmis jų pačių prašymu pagal Energijos
     bendrijos sutarties 96 straipsnį.

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 ---pagebreak---                                                   Pasiūlymas

                                             TARYBOS SPRENDIMAS

             dėl Bendrijos pozicijos Energijos bendrijos Ministrų taryboje dėl tam tikrų su
           Energijos bendrijos biudžetu susijusių procedūrinių klausimų, dėl šalių priėmimo
           stebėtojų teisėmis procedūrinių taisyklių ir Energijos bendrijos stebėtojų teisių ir
           pareigų bei dėl Moldovos, Ukrainos, Norvegijos ir Turkijos priėmimo į Energijos
                                       bendriją stebėtojų teisėmis

     EUROPOS SĄJUNGOS TARYBA,

     atsižvelgdama į Europos bendrijos steigimo sutartį, ypač į jos 300 straipsnio 2 dalies antrą
     pastraipą,

     atsižvelgdama į Komisijos pasiūlymą,

     kadangi:

     (1)      Energijos bendrijos sutarties 74 ir 88 straipsniuose nustatyta, kad Energijos bendrijos
              Ministrų taryba priima procedūrinį aktą, nurodantį biudžeto įgyvendinimo bei sąskaitų
              pateikimo ir audito bei patikrinimo tvarką.

     (2)      Remiantis Energijos bendrijos sutarties 96 straipsniu, Energijos bendrijos Ministrų
              taryba gali vieningai priimti kaimyninę trečiąją šalį stebėtojos teisėmis.

     (3)      Remiantis Energijos bendrijos sutarties 86 straipsniu, Energijos bendrijos
              institucijoms suteikiama teisė priimti procedūrinius aktus, reglamentuojančius
              organizacinius, biudžeto ir skaidrumo klausimus.

     (4)      Bulgarijai ir Rumunijai įstojus į Europos Sąjungą, šių šalių įnašus į Energijos
              bendrijos biudžetą, nustatytus Energijos bendrijos sutarties IV priede, padengs
              Europos bendrija pagal Stojimo akto1 6 straipsnį ir, remiantis Energijos bendrijos
              sutarties 99 straipsniu, šios šalys taps Energijos bendrijos dalyvėmis,

     1
              OL L 157, 2005 6 21, p. 203.

LT                                                    3                                                 LT
 ---pagebreak---      NUSPRENDĖ:

                                               1 straipsnis

     Pozicija, kurią Bendrija turi priimti Energijos bendrijos Ministrų taryboje dėl biudžeto
     įgyvendinimo, sąskaitų pateikimo, audito ir patikrinimų procedūros, yra apibrėžta
     pridedamame procedūrinio akto projekte dėl Energijos bendrijos biudžeto sudarymo ir
     įgyvendinimo bei audito ir patikrinimo procedūrų priėmimo, pateiktame A priede.

                                               2 straipsnis

     Pozicija, kurią Bendrija turi priimti Energijos bendrijos Ministrų taryboje dėl Energijos
     bendrijos sutarties IV priedo įgyvendinimo po Bulgarijos, Rumunijos įstojimo į Europos
     Sąjungą, yra apibrėžta pridedamame procedūrinio akto projekte dėl Energijos bendrijos
     steigimo sutarties IV priedo įgyvendinimo Bulgarijos ir Rumunijos, kurios tampa Energijos
     bendrijos dalyvėmis, atžvilgiu, pateiktame B priede.

                                               3 straipsnis

     Pozicija, kurią Bendrija turi priimti Energijos bendrijos Ministrų taryboje dėl šalių priėmimo
     stebėtojų teisėmis procedūrinių taisyklių ir Energijos bendrijos stebėtojų teisių ir pareigų, yra
     apibrėžta pridedame procedūrinio akto projekte dėl šalių priėmimo į Energijos bendriją
     stebėtojų teisėmis procedūrinių taisyklių priėmimo ir stebėtojų teisių ir pareigų, pateiktame C
     priede.

                                               4 straipsnis

     Pozicija, kurią Bendrija turi priimti Energijos bendrijos Ministrų taryboje dėl Moldovos,
     Ukrainos, Norvegijos ir Turkijos priėmimo į Energijos bendriją stebėtojų teisėmis yra ta, kad
     šios šalys priimamos į Energijos bendriją stebėtojų teisėmis.

     Priimta Briuselyje,

                                                  Tarybos vardu
                                                  Pirmininkas

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 ---pagebreak---                                              ANNEX A

                                                Draft

     PROCEDURAL ACT OF THE MINISTERIAL COUNCIL OF THE ENERGY COMMUNITY

     2006/…../MC-EnC: Ministerial Council Decision of 17 November 2006 on adoption of
     Energy Community Procedures for the Establishment and Implementation of Budget,
     Auditing and Inspection

     The Ministerial Council of the Energy Community,

     Having regard to the Treaty Establishing the Energy Community, and in particular Article 74
     thereof,

     Having regard to Article 88 of the Treaty Establishing the Energy Community,

     Having regard to the proposal, made by the European Commission, dated ………..,

     HAS DECIDED AS FOLLOWS:

     Article 1

     Adopts the Procedures for the Establishment and Implementation of Budget of the Energy
     Community, Auditing and Inspection presented in annex to this procedural act.

     Article 2

     The Director of the Energy Community Secretariat shall be responsible for the
     implementation of these rules.

     Article 3

     This decision is addressed to all Parties and institutions under the Treaty Establishing the
     Energy Community.

     Article 4

     The Director of the Energy Community Secretariat shall make this decision and its annex
     available to all Parties and institutions under the Treaty Establishing the Energy Community
     within 7 days after its adoption.

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 ---pagebreak---      Article 5

     This decision shall enter into force upon adoption.

     Done at …………… (place), ……… (date).

     For the Ministerial Council

     ……………… (signed by Presidency)

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 ---pagebreak---                                          Annex to the

                                        Procedural Act

                                               on

     Adoption of Energy Community Procedures for the Establishment and Implementation
                           of Budget, Auditing and Inspection

                                           TITLE I

                                SCOPE AND APPLICATION

                                            Article 1

       This Procedural Act on Budgetary Issues (hereinafter “Rules”) spells out the essential
       financial rules for the administration of the Energy Community budget.

                                           TITLE II

                             OBLIGATIONS OF THE PARTIES

                                            Article 2
          1. Parties assume full responsibility for the operational expenditure of the Energy
             Community, by way of annual contributions as set out in Annex IV of the Treaty,
             as stipulated in the relevant article 74 of the Treaty.

          2. The annual contributions of the Parties are to be transferred to the Energy
             Community budget during the first quarter of each budget year.

          3. Annual contributions of the Parties to the Energy Community budget are paid in
             Euros.

          4. If a Party fails to meet its obligation to the Energy Community, the Budget
             Committee shall report to the Ministerial Council that in turn determine the
             existence of a breach by a Party pursuant to article 91 of the Treaty.

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 ---pagebreak---                                              TITLE III

                                   BUDGETARY PRINCIPLES

                                              Article 3
        The establishment and implementation of the budget of the Energy Community
        (hereinafter "the budget") shall comply with the principles of unity and budget accuracy,
        annuality, equilibrium, unit of account, universality, specification, sound financial
        management and transparency as provided for in these rules.

                                     CHAPTER 1
                      PRINCIPLE OF UNITY AND BUDGET ACCURACY

                                              Article 4

     The budget is the instrument which, for each financial year, forecasts and authorises the
     revenue and expenditure considered necessary for the functioning of the Energy Community
     and its relevant institutions.

                                              Article 5

     The budget shall comprise:

               a. Revenue made up of the financial contributions by the Parties to the Treaty, in
                  accordance with Article 2(1) of these Rules,

               b. Revenue assigned to specific items of expenditure in accordance with Article
                  15(1) of these Rules,

               c. Carry over of the previous year in accordance with Article 10 of these Rules,

               d. The expenditure of the Energy Community, in accordance in Article 74 of the
                  Treaty, including administrative expenditure.

                                              Article 6

        1. No revenue shall be collected and no expenditure effected unless booked to a line in
           the budget.

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 ---pagebreak---      2. An appropriation must not be entered in the budget, if it is not for an item of
        expenditure considered necessary.

     3. No expenditure may be committed or authorised in excess of the appropriations
        authorised by the budget.

                                       CHAPTER 2
                                PRINCIPLE OF ANNUALITY

                                            Article 7
     1. According to Article 74 of the Treaty, the Ministerial Council adopts every two years
        the budget of two consecutive years. Each year is covered by a separate budget
        endorsed by the Ministerial Council on an annual basis.

     2. The appropriations entered in the budget shall be authorised for one financial year
        which shall run from 1 January to 31 December.

                                            Article 8

     1. The budget shall contain administrative appropriations which are non-differentiated
        and which shall consist of commitment appropriations and payment appropriations.

     2. Commitment appropriations shall cover the total cost of the legal commitments
        entered into during the current financial year.

     3. Payment appropriations shall cover payments made to honour the legal commitments
        entered into in the current financial year and/or earlier financial years.

     4. Administrative expenditure arising from contracts covering periods that extend beyond
        the financial year, either in accordance with local practice or relating to the supply of
        equipment, shall be charged to the budget of the financial year in which it is effected.

                                            Article 9

     1. The revenue of the Energy Community referred to in Article 5 shall be entered in the
        accounts for the financial year on the basis of the amounts collected during the
        financial year in accordance with Article 2(2) of these Rules.

     2. The appropriations authorised in the budget for a relevant year may be used solely to
        cover expenditure committed and paid in that financial year, and to cover amounts due
        against commitments from the previous financial year

     3. Commitments shall be entered in the accounts on the basis of the legal commitments
        entered into up to 31 December.

     4. Payments shall be entered in the accounts for a financial year on the basis of the
        payments effected by the accounting officer by 31 December of that year at the latest.

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 ---pagebreak---                                                Article 10
        1. Appropriations which have not been used at the end of the financial year for which
           they were entered shall be carried over into the following budget year as revenue.

        2. Appropriations carried over shall be identified respectively in the accounts.

                                        CHAPTER 3
                                 PRINCIPLE OF EQUILIBRIUM

                                               Article 11
        1. The budget revenue and expenditure must be in balance.

        2. The Energy Community may not raise loans.

                                       CHAPTER 4
                              PRINCIPLE OF UNIT OF ACCOUNT

                                               Article 12

     The budget shall be drawn up and implemented in Euro and the accounts shall be presented in
     Euro.

                                        CHAPTER 5
                                PRINCIPLE OF UNIVERSALITY

                                               Article 13

     Total revenue shall cover total expenditure. All revenue and expenditure shall be entered in
     full without any adjustment against each other.

                                               Article 14
        1. Revenue earmarked for specific purposes in the form of donations (Other income)
           shall be used only to finance them in accordance with these Rules.

        2. All items of revenue within the meaning of paragraph 1 shall cover all direct or
           indirect expenditure incurred by the activity or purpose in question.

        3. The budget shall carry lines to accommodate the categories of assigned revenue
           referred to in paragraph 1 and shall indicate the amount.

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 ---pagebreak---                                                Article 15
        1. The Director may accept donations to the Energy Community only upon in advance
           agreement of the Budget Committee, based on written information about the amount
           and the purpose of the donation and the financial charges involved.

        2. The yearly financial report to the Ministerial Council shall include explicit information
           on proposed and received donations and their usage.

                                               Article 16
        1. The following deductions may be made from payment requests, invoices or statements,
           which shall then be passed for payment of the net amount:

            (a) penalties imposed on parties to contracts, including procurement contracts;

            (b) adjustments for amounts paid unduly, which can be made by means of direct
                deduction against a new payment of the same type to the same payee under the
                chapter, article and financial year in respect of which the excess payment was made,
                and which give rise to interim payments or payments of balances.

        2. Discounts, refunds and rebates on invoices and payment requests shall not be recorded
           as revenue of the Energy Community.

        3. Any negative balance shall be entered in the budget as expenditure.

                                         CHAPTER 6
                                 PRINCIPLE OF SPECIFICATION

                                               Article 17

     The appropriations in their entirety shall be earmarked for specific purposes by title and
     chapter; the chapters shall be further subdivided into articles and items.

                                               Article 18
        1. The Director shall take decisions on transfers of appropriations [(excluding human
           resources budget line)] within the lines of the budget within the a total limit of [10%]
           of the appropriations for the financial year.

        2. The Director shall inform the Chairman of the Budget Committee within 7 days upon
           deciding on transfers in accordance with item 1 of this Article.

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 ---pagebreak---      3. Other transfers than those referred to in paragraph 1 have to receive the preliminary
        agreement of the Budget Committee.

                                            Article 19

     Appropriations corresponding to assigned revenue may be transferred only, if they are used
     for the purpose to which the revenue is assigned. Appropriations may be transferred only
     to budget lines for which the budget has authorised appropriations or carries a token entry.

                                  CHAPTER 7
                  PRINCIPLE OF SOUND FINANCIAL MANAGEMENT

                                            Article 20
     1.          Budget appropriations shall be used in accordance with the principle of sound
          financial management, i.e., in accordance with the principles of economy, efficiency
          and effectiveness.

     2.   The principle of economy requires that the resources used by the Energy Community
          for the pursuit of its activities shall be made available in due time, in appropriate
          quantity and quality and at the best price.

     3.   The principle of efficiency is concerned with the best relationship between resources
          employed and results achieved.

     4.   The principle of effectiveness is concerned with attaining the specific objectives set
          and achieving the intended results. These results shall be evaluated.

     5.   The annual work programme of the Energy Community adopted by the Ministerial
          Council shall contain objectives and performance indicators.

                                     CHAPTER 8
                             PRINCIPLE OF TRANSPARENCY

                                            Article 21
     1. The budget shall be drawn up and implemented and the accounts presented in
        compliance with the principle of transparency.
     2. The budget and amending budgets, as finally adopted, shall be published on the
        website of the Energy Community Secretariat.

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 ---pagebreak---                                               TITLE IV

                                     BUDGET COMMITTEE

                                              Article 22
     1. A Budget Committee is hereby established.

     2. The Budget Committee supervises and advises the Director in the financial management
        of the operations of the Energy Community and, in case of disagreement with the
        Director, reports to the Ministerial Council in accordance with these rules.

     3. The Director shall inform regularly the Budget Committee on all matters relating to
        budgetary and financial management. The Budget Committee shall be empowered to
        obtain any necessary information or explanations regarding budgetary matters.

                                              Article 23
     1.          The Budget Committee of the Energy Community shall consist of one member
          from each of the Contracting Parties and two members of the European Community,
          represented by the European Commission.

     2.          The European Community and each Contracting Party nominate their
          representatives. The term of office of the Budget Committee is 2 years.

     3.        Meetings of the Budget Committee will be chaired by the European
          Commission. The Chairperson may appoint a Co-chair.

     4.   The Budget Committee shall hold at least four ordinary meetings a year. In addition it
          shall meet at the instance of the Chairperson or at the request of at least one third of its
          members

     5.   The Budget Committee shall adopt its internal rules of procedure. Its decisions may be
          taken by written procedure. Budget Committee shall act by simple majority of the
          votes including the positive vote of the European Community. In case of a equal votes,
          the European Community shall have the deciding vote.

     6.   The Secretariat of the Budget Committee shall be provided by the Energy Community
          Secretariat.

     7.   The Energy Community Secretariat shall be represented at the meetings of the Budget
          Committee without voting rights.

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 ---pagebreak---                                                  TITLE V

                     ESTABLISHMENT AND STRUCTURE OF THE BUDGET

                                              CHAPTER 1

                                ESTABLISHMENT OF THE BUDGET

                                                 Article 24

     The budget shall be established in accordance with the Article 74 and 75 of the Treaty. It shall
     cover the operational expenses of the Energy Community necessary for functioning of its
     institutions in accordance with t he tasks of those defined in Title V ("Institutions of the
     Energy Community") of the Treaty. The expenditure of each Institution shall be set out in a
     different part of the budget.

                                                  Article 25

        1. For each year, the Director of the Energy Community Secretariat shall propose to the
           European Commission an estimate of the revenue and expenditure of the Energy
           Community of year N+1, by 31 March each year at the latest. This proposal shall be
           accompanied by explanatory general budgetary assumptions.

        2.    The European Commission shall submit this estimate to the Ministerial Council and
             propose the amount of the appropriations for the Energy Community in accordance
             with Annex IV of the Treaty. It shall also propose the number of staff of the Secretariat
             it considers that the Energy Community needs to carry out the tasks given under the
             Treaty in the budget period in question.

        3. The budget proposal of the Energy Community , in addition to the stipulations of point
           (2) above, shall contain the following:
                 a. Outline of the work programme of the Energy Community for the budget
                    period in question.

LT                                                  14                                                   LT
 ---pagebreak---                 b. An establishment plan setting the number of permanent and temporary posts
                   authorised within the limits of the budget appropriations;

                c. a statement justifying the request for new posts- where there is a change in the
                   number of persons in post.

                                               Article 26

     Any required amendment to the budget related to the estimated expenditures, including the
     number staff of the Secretariat, shall be subject of an amended budget adopted by the
     Ministerial Council by the same procedure as the initial budget.

                                    CHAPTER 2
                     STRUCTURE AND PRESENTATION OF THE BUDGET

                                               Article 27

     The budget shall comprise a statement of revenue and a statement of expenditure.

                                               Article 28

     The budget shall show:

       1.   In the statement of revenue:
                a. The estimated revenue of the Energy Community for the financial year in
                   question;

                b. The estimated revenue of the Energy Community for the preceding financial
                   year;

                c.         Appropriate remarks on each revenue line;
       2.   In the statement of expenditure:
                a. Appropriations for the financial year in question;

                b. Appropriations for the preceding financial year;

                c.         Appropriate remarks on each subdivision.

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 ---pagebreak---                                                Article 29

     The establishment plan referred to in Article 24 shall show next to the number of posts
     authorised for the financial year, the number authorised for the preceding year and the number
     of posts actually filled.

     It shall constitute an absolute limit for the Energy Community; no appointment may be made
     in excess of the limit set.

                                               Article 30

     The draft Budget presented for adoption to the Ministerial Council shall contain an explanatory
     memorandum prepared by the Director and agreed by the European Commission setting out the
     considerations which have guided the preparation of the budget, together with a summary table
     showing the proposed appropriations apportioned by the major items of the Energy Community
     expenditure.

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 ---pagebreak---                                               TITLE VI

                             IMPLEMENTATION OF THE BUDGET

                                         CHAPTER 1
                                     GENERAL PROVISIONS

                                               Article 31

     The Director shall perform the duties of authorising officer. He shall implement the budget in
     compliance with these rules on the ground of Article 74 of the Treaty, on his own
     responsibility and within the limits of the appropriations authorised.

                                               Article 32
       1.   The Director may delegate his powers of budget implementation to staff of the
            Secretariat. Those so empowered may act only within the limits of the powers
            expressly conferred upon them.

                                               Article 33
       1.   All financial actors within the meaning of Chapter 2 of this Title shall be prohibited
            from taking any measures of budget implementation which may bring their own
            interests into conflict with those of the Energy Community. Should such a case arise,
            the actor in question must refrain from such measures and refer the matter to the
            competent authority.

       2.   There is a conflict of interests where the impartial and objective exercise of the
            functions of an actor in the implementation of the budget or an internal auditor is
            compromised for reasons involving family, emotional life, political or national
            affinity, economic interest or any other shared interest with the beneficiary or
            contractor.

       3.   The competent authority referred to in paragraph 1 shall be the immediate superior of
            the member of staff concerned. If the member of staff is the Director, the competent
            authority shall be the Chairperson of the Budget Committee.

                                               Article 34

       Technical expertise tasks and administrative, preparatory or ancillary tasks involving
       neither the exercise of public authority nor the use of discretionary powers of judgement
       may be entrusted by contract to external private-sector entities or bodies, where this proves
       to be indispensable.

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 ---pagebreak---                                            CHAPTER 2
                                       FINANCIAL ACTORS

                                            SECTION 1
                               PRINCIPLE OF SEGREGATION OF DUTIES

                                               Article 35

     The duties of authorising officer and accounting officer shall be segregated and mutually
     incompatible.

                                            SECTION 3
                                        AUTHORISING OFFICER

                                               Article 36
       1.   The authorising officer shall be responsible for implementing revenue and expenditure
            in accordance with the budgetary principles as described in Title III of this Procedural
            Act, and for ensuring that the requirements of legality and regularity are complied
            with.

       2.   To implement expenditure, the authorising officer shall make budget commitments
            and legal commitments, shall validate expenditure and authorise payments in
            accordance with the relevant provisions of this Procedural Act, and shall undertake the
            preliminaries for the implementation of appropriations.

       3.   Implementation of revenue shall comprise drawing up estimates of amounts
            receivable, establishing entitlements to be recovered and issuing recovery orders. It
            shall involve waiving established entitlements where appropriate.

       4.   The authorising officer shall assure that all the supporting documents related to
            operations carried out for a period of five years from the date of the decision granting
            discharge in respect of implementation of the budget are properly preserved.

                                               Article 37
       1.   Having due regard to the risks associated with the management environment and the
            nature of the actions financed, the authorising officer shall put in place the
            organisational structure, internal management, control systems and procedures
            (hereinafter “Internal Management Rules of the Energy Community”) suited to the
            performance of his duties, including where appropriate ex post verifications

       2.   Before an operation is authorised, the operational and financial aspects shall be
            verified by members of staff other than the one who initiated the operation. Initiation
            and the ex ante and ex post verification of an operation shall be separate functions.

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 ---pagebreak---        3.   The staff responsible for the verifications shall be different from those initiating the
            operation and shall not be their subordinates.

                                               Article 38

     The Director, as authorising officer, shall report to Ministerial Council and inform the Budget
     Committee on the performance of his duties in the form of an annual activity report
     (hereinafter "Authorising officer's report"), together with financial and management
     information.

                                               Article 39

     Any member of staff involved in the financial management and control of transactions who
     considers that a decision he is required by his superior to apply or to agree to is irregular or
     contrary to the budgetary principles, as defined in Title III of this Procedural Act, or the
     professional rules he is required to observe shall inform the Director in writing and, if the
     latter fails to take action within a reasonable period, the Budget Committee. In the event of
     evidence of any illegal activity, fraud or corruption which may harm the interests of the
     Community, he shall inform the authorities and bodies designated by the applicable
     legislation of the domicile country.

                                               Article 40

     Where powers of budget implementation are delegated, Article 36 of these Rules shall apply
     mutatis mutandis to the authorised officers.

                                               SECTION 3
                                         ACCOUNTING OFFICER

                                               Article 41
       1.   Upon proposal of the European Commission, the Director shall appoint an accounting
            officer, in accordance with the Procedural Act applicable to Rules for the recruitment,
            working conditions and geographic equilibrium of the Secretariat, who shall be
            responsible in the Secretariat for:
                a. Proper implementation of payments, collection of revenue and recovery of
                   amounts established as being receivable;

                b. Preparing and presenting the accounts in accordance with Title VI;

                c. Keeping the accounts in accordance with Title VI;

                d. Implementing, in accordance with Title VI, the accounting rules and methods
                   and the chart of accounts;

LT                                                 19                                                   LT
 ---pagebreak---              e. Laying down and validating the accounting systems and where appropriate
                validating systems laid down by the authorising officer to supply or justify
                accounting information;

             f. Treasury management.

     2.   Subject paragraph 3 the accounting officer is alone empowered to manage monies and
          other assets. He shall be responsible for their safekeeping.

     3.   If necessary, the accounting officer may delegate certain tasks, with respect to the
          principle of segregation of duties.

                                     CHAPTER 3
                         LIABILITY OF THE FINANCIAL ACTORS

                                           SECTION 1
                                         GENERAL RULES

                                             Article 42
     1.   The responsibility under these Rules is personal.

     2.   Any member of staff may be required to make good, in whole or in part, any damage
          suffered by the Energy Community as a result of misconduct on his part in the course
          of or in connection with the performance of his duties assigned to him in accordance
          with the relevant duty description.

                                             Article 43
     1.   Without prejudice to any disciplinary action, the authorising officer may withdraw any
          delegation at any time temporarily or definitively. The Chairman of the Budget
          Committee shall be immediately informed for such an action with a proper
          justification.

     2.   Without prejudice to any disciplinary action, the accounting officer may at any time be
          suspended temporarily or definitively from his duties by the Director, upon
          preliminary agreement of      the European Commission. On a proposal of the
          European Commission, the Director shall appoint an interim accounting officer and
          consequently a permanent accounting officer in accordance with the recruitment rules
          of the Energy Community.

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 ---pagebreak---                                                 Article 44

     1.    The provisions of this chapter are without prejudice to the criminal law liability
          which the authorising officer and the persons referred to in this Chapter may incur as
          provided in the applicable national law of the domicile country and in the provisions in
          force on the protection of the Energy Communities' financial interests and on the fight
          against corruption involving officials of the Energy Community or officials of the
          Parties.

     2.    Any person, who has authority under these Rules, shall be respectively liable to
          disciplinary action in accordance with them and/or the applicable legislation of the
          domicile country. In the event of evidence of illegal activity, fraud or corruption which
          may harm the interests of the Energy Community, the matter will be referred to the
          competent authorities and bodies.

                                               SECTION 2
                         RULES APPLICABLE TO THE AUTHORISING OFFICER

                                                Article 45
     1.   The authorising officer may be required to make good, in whole or in part, any
          damage suffered by the Energy Community as a result of serious misconduct on his
          part in the course of or in connection with the performance of his duties, in particular
          if he determines entitlements to be recovered or issues recovery orders, commits
          expenditure or signs a payment order without complying with this Procedural Act. The
          same shall apply where, through serious misconduct, he fails to draw up a document
          establishing an amount receivable or if he fails to issue a recovery order or is, without
          justification, late in issuing it, or if he fails to issue a payment order or is late in issuing
          it, thereby rendering the Energy Community liable to civil action by third parties.

     2.   An authorising officer by delegation who considers that a decision falling under his
          responsibility is irregular or contrary to the principles of sound financial management
          shall inform the delegating authority in writing. If the delegating authority then gives a
          reasoned instruction in writing to the authorising officer by delegation to implement
          the decision in question, the latter must implement it and may not be held liable.

     3.   In the event of delegation, the authorising officer shall continue to be responsible for
          the effectiveness of the internal management rules put in place and for the choice of
          the authorising officer by delegation.

     4.   The Authorising officer shall not be held responsible for any rulings, provided by the
          Budget Committee and/or the Ministerial Council, in case they are strictly followed.
          Should the Authorising officer disagree with any of these rulings, he has the right to
          notify the relevant authority in writing. However, he is obliged to follow the relevant
          rulings.

LT                                                  21                                                       LT
 ---pagebreak---                                                SECTION 3
                          RULES APPLICABLE TO THE ACCOUNTING OFFICER

                                                Article 46

     In case of misconduct, the accounting officer may be liable to disciplinary action, in particular
     but not exclusively, where:

                a. he loses or damages money, assets and documents in his keeping or causes
                   them to be lost or damaged by his negligence;

                b. he alters bank accounts or postal giro accounts without notifying the
                   authorising officer in advance;

                c. he recovers or pays amounts which are not in conformity with the
                   corresponding recovery or payment orders;

                d. he fails to take all necessary measures to collect revenue due.

                                          CHAPTER 4
                                      REVENUE OPERATIONS

                                             SECTION 1
                                         GENERAL PROVISIONS

                                                Article 47

     The Energy Community shall receive contributions from the Parties as laid down in Article 2
     of this document.

                                                Article 48

     The funds paid to the Energy Community by the Parties shall bear interest for the benefit of
     the Energy Community budget.

LT                                                  22                                                   LT
 ---pagebreak---                                             SECTION 2
                                 ESTIMATE OF AMOUNTS RECEIVABLE

                                                    Article 49

     An estimate of the amount receivable shall first be made by the authorising officer responsible
     in respect of any measure or situation which may give rise to or modify an amount owing to
     the Community body.

                                          SECTION 3
                             ESTABLISHMENT OF AMOUNTS RECEIVABLE

                                                    Article 50

     1.      Establishment of an amount receivable is the act by which the authorising officer or
             authorising officer by delegation:

             (a)   verifies that the debt exists;

             (b)   determines or verifies the reality and the amount of the debt;

             (c)   verifies the conditions in which the debt is due.

     2.      Any amount receivable that is identified as being certain, of a fixed amount and due
             must be established by a recovery order given to the accounting officer, accompanied
             by a debit note sent to the debtor. Both of these documents shall be drawn up and
             sent by the authorising officer responsible.

     3.      Without prejudice to the provisions laid down in the rules, contract or agreement
             applicable, any debt not repaid on the due date laid down in the debit note shall bear
             interest.

     4.      In duly substantiated cases, certain routine revenue items may be established
             provisionally.

             Provisional establishment shall cover the recovery of several individual amounts
             which need not therefore be established individually.

             Before the end of the financial year, the authorising officer shall amend the amounts
             established provisionally to ensure that they correspond to the amounts receivable
             actually established.

LT                                                     23                                              LT
 ---pagebreak---                                                Article 51

     The authorisation of recovery is the act whereby the authorising officer responsible instructs
     the accounting officer, by issuing a recovery order, to recover an amount receivable which
     he/she has established.

                                               Article 52

     1.      Amounts wrongly paid shall be recovered.

     2.      The accounting officer shall act on recovery orders for amounts receivable duly
             established by the authorising officer or authorising officer responsible. He/she shall
             exercise due diligence to ensure that the Energy Community receives its revenue and
             shall see that its rights are safeguarded.

     3.      Where the authorising officer responsible is planning to waive recovery of an
             established amount receivable, he/she shall ensure that the waiver is in order and
             complies with the principle of sound financial management.

             Such a waiver shall be by decision of the authorising officer, which must be
             substantiated. The authorising officer may not delegate such a decision.

             The waiver decision shall state what action has been taken to secure recovery and the
             points of law and fact on which it is based.

     4.      The authorising officer responsible shall cancel an established amount receivable
             when the discovery of a mistake as to a point of law or fact reveals that the amount
             had not been correctly established. Such cancellation shall be by decision of the
             authorising officer responsible and shall be suitably substantiated.

     5.      The authorising officer responsible shall adjust the amount of an established debt
             upwards or downwards when the discovery of a factual error entails the alteration of
             the amount of the debt, provided that this correction does not involve the loss of the
             established entitlement of the Energy Community. Such an adjustment shall be by
             decision of the authorising officer responsible and shall be suitably substantiated.

                                               Article 53

     1.      Upon actual recovery of the sum due, the accounting officer shall make an entry in
             the accounts and shall inform the authorising officer responsible.

     2.      A receipt shall be issued in respect of all cash payments made to the accounting
             officer.

LT                                                24                                                   LT
 ---pagebreak---                                                    Article 54

     1.          If actual recovery has not taken place by the due date stipulated in the debit note, the
                 accounting officer shall inform the authorising officer responsible and immediately
                 launch the procedure for effecting recovery by any means offered by the law,
                 including, where appropriate, by offsetting and, if this is not possible, by enforced
                 recovery.

     2.          The accounting officer shall recover amounts by offsetting them against equivalent
                 claims that the Energy Community has on any debtor who himself has a claim on the
                 Community body that is certain, of a fixed amount and due, provided that offsetting
                 is legally possible.

                                                   Article 55

     The accounting officer, in collaboration with the authorising officer responsible, may allow
     additional time for payment only at the written request of the debtor, with due indication of
     the reasons, provided that the following two conditions are met:

     (a)         the debtor undertakes to pay interest at the rate specified for the entire additional
                 period allowed, starting from the date on which the payment was originally due;

     (b)         in order to safeguard the rights of the Energy Community, the debtor provides a
                 financial guarantee covering both the principal sum and the interest.

                                            CHAPTER 5
                                      EXPENDITURE OPERATIONS

                                                   Article 56
           1.   Every item of expenditure shall be committed, validated, authorised and paid.

           2.   Every commitment of expenditure shall be preceded by a justified financing decision.

           3.   The work programme of the Energy Community shall be equivalent to the financing
                decisions for the activities it covers, provided that they are clearly identified and the
                underlying criteria are spelled out precisely.

           4.   Administrative appropriations related to the every-day operations of the Energy
                community and its institutions may be implemented without a prior financing decision.

LT                                                     25                                                   LT
 ---pagebreak---                                            SECTION 1
                                COMMITMENT OF EXPENDITURE

                                           Article 57
     1.   The budget commitment is the operation reserving the appropriation necessary to
          cover subsequent payments to honour a legal commitment.

     2.   The legal commitment is the act whereby the authorising officer responsible enters
          into or establishes an obligation which results in a charge for the budget.

     3.   The budget commitment is individual when the beneficiary and the amount of the
          expenditure are known.

     4.   The budget commitment is global when at least one of the elements necessary to
          identify the individual commitment is still not known.

                                           Article 58
     1.   In respect of any measure which may give rise to expenditure chargeable to the
          budget, the authorising officer responsible must first make a budget commitment
          before entering into a legal obligation with third parties.

     2.   Individual legal commitments relating to individual budget commitments shall be
          concluded by 31 December of the current financial year.

     3.   The legal commitments entered into for actions extending over more than one
          financial year and the corresponding budget commitments shall, save in the case of
          officials expenditure, have a final date for implementation set in compliance with the
          principle of sound financial management.

                                           Article 59

     1. In respect of any measure which may give rise to expenditure chargeable to the
        budget, the authorising officer responsible must first make a budget commitment
        before entering into a legal obligation with third parties.

     2. Global budget commitments shall cover the total cost of the corresponding individual
        legal commitments concluded up to 31 December of year n + 1.

     3. Individual legal commitments relating to individual budget commitments shall be
        concluded by 31 December of year N.

LT                                             26                                                  LT
 ---pagebreak---         4. At the end of the periods referred to in the paragraphs 2 and 3, the unused balance of
           these budget commitments shall be decommitted by the authorising officer
           responsible.

        5. The legal commitments entered into for actions extending over more than one
           financial year and the corresponding budget commitments shall, save in the case of
           staff expenditure, have a final date for implementation set in compliance with the
           principle of sound financial management.

             Any parts of such commitments which have not been executed six months after that
             final date shall be decommitted

        6. Where a legal commitment has not then resulted in a payment after a period of three
           years, the authorising officer responsible shall decommit it.

                                                Article 60

     When adopting a budget commitment, the authorising officer responsible shall ensure that:

                b. The expenditure has been charged to the correct item in the budget;

                c. The appropriations are available;

                d. The expenditure conforms to the applicable provisions, in particular those of
                   the Treaty, the internal management rules of the institutions of the Energy
                   Community;

                e. The principle of sound financial management is complied with.

                                               SECTION 2
                                    VALIDATION OF EXPENDITURE

                                                Article 61

     Validation of expenditure is the act whereby the authorising officer responsible:

                a. Verifies the existence of the creditor's entitlement;

                b. Verifies the conditions in which payment is due;

                c. Determines or verifies the reality and the amount of the claim.

                                                Article 62
        1.   Validation of any expenditure shall be based on supporting documents attesting the
             creditor's entitlement, on the basis of a statement of services actually rendered,
             supplies actually delivered or work actually carried out, or on the basis of other
             documents justifying payment.

LT                                                 27                                               LT
 ---pagebreak---      2.    The validation decision shall be expressed by the signing of a "passed for payment"
           voucher by the authorising officers responsible.

                                           SECTION 3
                                  AUTHORISATION OF EXPENDITURE

                                              Article 63
      1.    Authorisation of expenditure is the act whereby the authorising officer responsible,
            by issuing a payment order, instructs the accounting officer to pay an item of
            expenditure which he has validated. .

      2.    The payment order shall be dated and signed by the authorising officer responsible,
            then sent to the accounting officer. The supporting documents shall be kept by the
            authorising officer responsible in accordance with Article 36(4).

      3.    Where appropriate, the payment order sent to the accounting officer shall be
            accompanied by a document certifying that the goods have been entered in the
            inventories referred to in Article 71.

                                              SECTION 4
                                      PAYMENT OF EXPENDITURE

                                              Article 64
     1.    Payment shall be made on production of proof that the relevant action has been
           carried out in accordance with the provisions of the basic act and shall cover one of
           the following operations:
              a.            Payment of the entire amount due;

              b.            Payment of the amount due in any of the following ways:

                       i. pre-financing, which may be divided into a number of payments;

                      ii.          one or more interim payments;

                     iii.          payment of the balance of the amounts due.

           Pre-financing shall count in full or in part against the interim payments.

           The entire pre-financing and interim payments shall count against the payment of
           balances.

LT                                                28                                               LT
 ---pagebreak---         2.   A distinction shall be made in the accounts between the different types of payment
             referred to in paragraph 1 at the time they are made.

        3.   The validation, authorisation and payment of expenditure must be carried out within
             the time-limits specified in - and in accordance with the provisions of - the detailed
             rules for implementation provided for in Article 88.

                                               Article 65

     Payment of expenditure shall be made by the accounting officer within the limits of the funds
     available.

LT                                                 29                                                 LT
 ---pagebreak---                                            TITLE VII

                               PROCUREMENT AND GRANTS

                                            Article 66

     As regards procurement, the relevant provisions for public procurement of the domicile
     country shall apply.

                                            Article 67

     The Energy Community Secretariat may not award grants.

                                           TITLE VIII

                 PRESENTATION OF THE ACCOUNTS AND ACCOUNTING

                                     CHAPTER 1
                            PRESENTATION OF THE ACCOUNTS

                                            Article 68

     The annual accounts of the Energy Community shall comprise:

               a. The financial statements of the Energy Community

               b. The report on implementation of the budget of the Energy Community

               c. The annual accounts of the Energy Community shall by accompanied by
                  explanations referring to the financial statements, consisting of the balance
                  sheet, income statement as well as assets analysis of the Energy Community.

                                            Article 69

     The accounts must comply with the fundamental accounting rules and be accurate and
     comprehensive and present a true and fair view:

LT                                              30                                                LT
 ---pagebreak---                 a. as regards the financial statements, of the assets and liabilities, charges and
                   income, entitlements and obligations not shown as assets or liabilities and cash
                   flow;

                b. as regards report on budget implementation, of revenue and expenditure
                operations

                                               Article 70

     The financial statements shall be drawn up in accordance with the generally accepted
     accounting principles, namely:

                a. Going concern;

                b. Prudence;

                c. Consistent accounting methods;

                d. Comparability of information;

                e. Materiality[];

                f.   No netting;

                g. Fair presentation;

                h. Accrual-based accounting.

                                               Article 71
        1.           In accordance with the principle of accrual-based accounting revenue and
              expenses are recorded in the period in which they are earned or incurred regardless of
              the date of payment or collection.

        2.    The value of assets and liabilities shall be determined in accordance with the
              valuation rules laid down by the accounting methods provided for in International
              Accounting Standard and, if necessary, in National standards of the domicile country.

                                               Article 72
         1.   The financial statements shall be presented in Euro and shall comprise:
                a. The balance sheet and the income statement, which represent the assets and
                   liabilities and result of the financial year at 31 December in comparison with
                   the previous year;

                b. The cash-flow statement showing amounts collected and disbursed during the
                   year and the final treasury position;

LT                                                 31                                                  LT
 ---pagebreak---                  c. The statement of changes in equity during the financial year.
         2.   The annex to the financial statements shall supplement and comment on the
              information presented in the statements referred to in paragraph 1 and shall supply
              all the additional information prescribed by internationally accepted accounting
              practice where such information is relevant to the Energy Community's activities.

                                             CHAPTER 2
                                            ACCOUNTING

                                               SECTION 1
                                         COMMON PROVISIONS

                                                Article 73
        1.    The accounting system of the Energy Community is the set of manual and
              computerized procedures and controls that provide for identifying relevant
              transactions or events; preparing accurate source documents, entering data into the
              accounting records accurately, processing transactions accurately, updating master
              files properly, and generating accurate documents and reports.

        2.    The accounts shall consist of general accounts and budget accounts. These accounts
              shall be kept in Euro on the basis of the calendar year.

        3.    The figures in the general accounts and the budget accounts shall be adopted at the
              close of the budget year so that the accounts referred to in Chapter 1 can be drawn up.

        4.    The accounting officer shall adopt accounting rules and methods which take account
              of the internationally accepted accounting standards for the public sector, and if
              necessary of the rules applied by the public authorities of the [domicile country] or
              [European Communities].

                                               SECTION 2
                                          GENERAL ACCOUNTS

                                                Article 74

     The general accounts shall record, in chronological order using the double entry method, all
     events and operations which affect the economic and financial situation and the assets and
     liabilities of the Energy Community.

LT                                                  32                                                  LT
 ---pagebreak---                                                Article 75
        1.   Movements on the accounts and the balances shall be entered in the accounting
             ledgers.

        2.   All accounting entries, including adjustments to the accounts, shall be based on
             supporting documents, to which they shall refer.

        3.   The accounting system must be such as to leave a trail for all accounting entries.

                                               Article 76

     The accounting officer of the Energy Community shall, after the close of the budget year and
     up to the date of presentation of the final accounts, make any adjustments which, without
     involving disbursement or collection in respect of that year, are necessary for a true and fair
     presentation of the accounts in compliance with these rules.

                                             SECTION 3
                                          BUDGET ACCOUNTS

                                               Article 77
        1.   The budget accounts shall provide a detailed record of budget implementation.

        2.   For the purposes of paragraph 1, the budget accounts shall record all budget revenue
             and expenditure operations provided for in Title V of these rules.

                                             CHAPTER 3

                                    PROPERTY INVENTORIES

                                               Article 78

        The Energy Community shall keep inventories showing the quantity and value of all the
        tangible, intangible and financial assets constituting Energy Community property.

LT                                                 33                                                  LT
 ---pagebreak---                                                TITLE IX

                              EXTERNAL AUDIT AND DISCHARGE

                                           CHAPTER 1
                                         EXTERNAL AUDIT

                                                Article 79
     Each year, the accounting officer establishes the accounts of the previous year no later than
     the 31 March. These accounts are validated by the Director.

                                                Article 80

     The Director shall, subject to approval by the Budget Committee, designate an independent
     External Auditor to carry out the annual audit of the Energy Community as defined under the
     Treaty, the Terms of Reference for which shall also be approved by the Budget Committee. The
     term of service of the External Auditors is renewable every year, unless otherwise specified by
     the Ministerial Council.

                                                Article 81
        1.   The External Auditors shall submit to the Ministerial Council and the Budget
             Committee a report, together with the statement of assets and liabilities and certified
             accounts, not later than eight months after the end of the financial year to which they
             relate.

        2.   The Director shall make such observations as he considers appropriate on the
             External Auditors' report.

        3.   The External Auditors shall conduct such audits as deemed necessary, in accordance
             with their approved Terms of Reference The External Auditors shall, in particular,
             inspect the accounting records and procedures of the Energy Community for the
             purpose of verifying the accuracy and completeness of the records. The external audit
             determines the overall validity of financial statements.

        4.   The External Auditors shall as a part of the annual audit, review the Internal
             Management Rules of the Energy Community and its operational implementation.

        5.   The External Auditors shall submit an audit report and certified accounts, together
             with a statement of assurance relating to the reliability of the accounts and the legality
             and regularity of the underlying transactions, to the Budget Committee so that they
             may be available to the Ministerial Council not later than eight months after the end
             of the financial year to which the accounts relate. The Budget Committee shall make
             to the Ministerial Council such observations on the documents submitted by the
             Auditors as it may consider appropriate.

LT                                                  34                                                    LT
 ---pagebreak---                                           CHAPTER 2
                                          DISCHARGE

                                             Article 82

         Taking account of the potential observations of the Budget Committee, and with a view
     to granting the discharge to the Director, the Ministerial Council shall examine the certified
     accounts and financial statements of the Energy Community. It shall also examine the report
     of the external auditors and the auditors' statement of assurance.

                                             Article 83

     On the basis of this report, and, the Ministerial Council shall discharge the Director from his
     management and administrative responsibility in respect of the budget before 31 December
     N+ 1.

                                             Article 84
     1.   The Director shall take all appropriate steps to act on the observations accompanying
          the Ministerial Council’s discharge decision.
     2.   At the request of the Ministerial Council or of the Budget Committee, the Director
          shall report on the measures taken in the light of these observations and comments.

LT                                               35                                                    LT
 ---pagebreak---                                                  TITLE X

                            TRANSITIONAL AND FINAL PROVISIONS

                                                 Article 85

     [These rules are in compliance with the fundamental principles of the accounting of the
     Commercial Code of the domicile country as well as of the International Accounting
     Standards.]

                                                 Article 86

     The Ministerial Council, Budget Committee and the Parties to the Treaty shall be empowered to
     obtain any necessary information or explanations regarding budgetary matters within their fields
     of competence.

                                                 Article 87

     Upon approval of the European Commission, the Director shall, as far as is necessary, adopt
     detailed rules for implementing of these rules applicable to the Energy Community.

                                                 Article 88

     Till the formal establishment of a Budget Committee, its functions will be performed by the
     European Commission.

                                                 Article 89

     This Procedural Act shall be binding in its entirety on all Parties to the Treaty and the
     Institutions set up under the Treaty.

     The Ministerial Council may amend these rules upon a proposal of the European Community.

     This Procedural Act has been adopted by the Ministerial Council of the Energy Community
     on the ground of Article 74 of the Treaty Establishing the Energy Community on ………. and
     become effective upon the day of their adoption.

LT                                                  36                                                  LT
 ---pagebreak---                                              ANNEX B

                                                Draft

                                        PROCEDURAL ACT

                                 OF THE MINISTERIAL COUNCIL

                                  OF THE ENERGY COMMUNITY

     2006/…../MC-EnC: Ministerial Council Decision of 17 November 2006 on the
     implementation of Annex IV of the Treaty establishing the Energy Community with
     respect to Bulgaria and Romania becoming Participants of the Energy Community

     The Ministerial Council of the Energy Community,

     Having regard to the Treaty Establishing the Energy Community, and in particular to Articles
     86 and 99 thereof,

     Having regard to Article 73 of Treaty Establishing the Energy Community, which provides
     for a procedure for a review of Annex IV of that Treaty and that procedure can be applied by
     analogy,

     Whereas,

     (1) Annex IV provides that Bulgaria and Romania shall, respectively, cover 1 and 2.2 % of
     the Energy Community Budget.

     (2) On 1st January 2007, Bulgaria and Romania will join the European Union, and thus will
     become Participants in the Energy Community as provided for Article 99 of the Treaty and
     without any further act of any institution of the Energy Community being necessary to that
     effect,

     (3) From 1st January 2007, the contributions of Bulgaria and Romania to the budget of the
     Energy Community specified in Annex IV to the Treaty will, in accordance with the internal
     rules of the European Community respectively be covered by the European Community,

LT                                               37                                                 LT
 ---pagebreak---      HAS DECIDED AS FOLLOWS:

     Article 1

     The financial contributions to the budget of the Energy Community of Bulgaria and Romania
     upon their accession to the European Union shall be covered by the European Community.

     Article 2

     This decision is addressed to all Parties and institutions under the Treaty Establishing the
     Energy Community.

     Article 3

     The Director of the Energy Community Secretariat shall make this decision and its annex
     available to all Parties and institutions under the Treaty Establishing the Energy Community
     within 7 days after its adoption.

     Article 4

     This decision shall enter into force upon adoption.

     Done at …………… (place), ……… (date).

     For the Ministerial Council

     ……………… (signed by Presidency)

LT                                                 38                                               LT
 ---pagebreak---                                               ANNEX C

                                                  Draft

                                         PROCEDURAL ACT

                                  OF THE MINISTERIAL COUNCIL

                                   OF THE ENERGY COMMUNITY

     2006/…../MC-EnC: Ministerial Council Decision of 17 November 2006 on adoption of
     Procedural Rules on Acceptance of Countries as Observers to the Energy Community
     and on Rights and Obligations of Observers

     The Ministerial Council of the Energy Community,

     Having regard to the Treaty Establishing the Energy Community, and in particular Article 86
     thereof,

     Having regard to the proposals, made by the Permanent High Level Group, dated 16
     November 2006,

     Having regard to Article 96 of the Treaty,

     HAS DECIDED AS FOLLOWS:

     Article 1

     Adopts Procedural Rules on Acceptance of Countries as Observers to the Energy Community
     and on Rights and Obligations of Observers as presented in annex to this procedural act.

     Article 2

LT                                                 39                                              LT
 ---pagebreak---      This decision is addressed to all Parties and institutions under the Treaty Establishing the
     Energy Community.

     Article 3

     The Director of the Energy Community Secretariat shall make this decision and its annex
     available to all Parties and institutions under the Treaty Establishing the Energy Community
     within 7 days after its adoption.

     Article 4

     This decision shall enter into force upon its adoption.

     Done at …………… (place), ……… (date).

     For the Ministerial Council

     ……………… (signed by Presidency)

LT                                                  40                                              LT
 ---pagebreak---                                           Annex to the

                                         Procedural Act

                                               On

     Rules on Acceptance of Countries as Observers to the Energy Community and Rights
                               and Obligations of Observers

      I.     GENERAL

      1. Without prejudice to Article 96(1), second sentence, of the Treaty Establishing the
         Energy Community (hereinafter: “the Treaty”), these rules establish the procedure for
         the acceptance of a country as an Observer to the Energy Community in accordance
         with Article 96 of the Treaty. These Rules further set forth the rights and obligations
         of the Observer(s).

      2. In accordance with the Treaty and its objectives, Observer status might be granted to a
         neighboring country ready to gradually take up the acquis.

      II.    PROCEDURAL STEPS

      1. The Observer status is granted by the Ministerial Council of the Energy Community
         upon a reasoned request by the applicant country submitted to the Presidency.

      2. The Presidency shall notify the request to the Ministerial Council at the next meeting
         of the Ministerial Council following the receipt of the request. In parallel, the
         Presidency, after consultation with the Vice-Presidents and prior to the Ministerial
         Council’s meeting, may ask the Secretariat to prepare additional information in
         relation to the request.

      3. The decision of the Ministerial Council under subparagraph 1 shall be taken
         unanimously. It shall refer to Article 96(1) of the Treaty and these Rules.

      III.   PRINCIPAL RIGHTS AND OBLIGATIONS OF THE OBSERVERS

      1. The Observers to the Energy Community have the rights to be represented at the
         meetings of the Ministerial Council, the Permanent High Level Group, the Regulatory
         Board and the Fora (one representative per meeting, excluding the Fora, where any
         Observer might have up to three representatives).

LT                                             41                                                  LT
 ---pagebreak---        2. The Observers are entitled to receive any information distributed before, during and
          after the relevant meetings which is related to the discussed topics.

       3. The Observers follow any requirements for confidentiality, which are valid to the
          Parties.

       4. The Observers may make statements upon request and consequent permission by the
          chair of the meeting at which they want to make statement.

       5. Observers have no right to participate in voting.

       6. In case of conflict between these Rules and the specific Internal Rules of Procedure of
          any institution of the Energy Community, the Internal Rules of Procedure of the
          institution in question shall prevail.

       IV.    MISCELLANEOUS AND CONCLUSIVE REMARKS

       1. The Observer status, granted to any country by the Ministerial Council, prior to the
          adoption of these rules, shall not be affected by them.

       2. The rules have been adopted by the Ministerial Council on the ground of Articles 86
          and 96 of the Treaty.

       3. The rules enter into force on the day of their adoption.

     These rules have been adopted on …………………..

LT                                               42                                                 LT