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Amendment to the Geological and Mining Law imposes new obligations on entrepreneurs

Amendment to the Geological and Mining Law imposes new obligations on entrepreneurs

On 1st June 2017, the Polish Senate adopted the Act of 25th May 2017 amending the Geological and Mining Law (hereinafter: the Amendment). The amendment aims to implement Directive 2013/30/EU of the European Parliament and of the Council of 12 June 2013 on the safety of offshore oil and gas operations and amending Directive 2004/35/EC (OJ L 178, 28.06.2013, p. 66) [hereinafter: the Directive].

According to art. 8 of the Amendment, the general rule is that the current legal provisions shall continue to be applied to proceedings concerning activities conducted within the Republic of Poland’s maritime boundaries that were initiated but not completed before the Amendment’s entry into force.

Certain exceptions to this general rule are laid down. Accordingly, the provisions of the Amendment will not apply to:

1) proceedings, conducted pursuant to the Act of 11 July 2014 amending the Geological and Mining Law and certain other laws, that were initiated but not completed before the Amendment’s entry into force;

2) geographical areas falling within the scope of a concession authority’s announcement concerning the planned initiation of the tender procedure, published before the Amendment’s entry into force.

Nevertheless, the Polish parliament decided to oblige entrepreneurs who are already engaged in the offshore prospecting, exploration and production of hydrocarbons deposits to adjust their offshore activities so as to ensure compliance with the requirements laid down in the Amendment. In particular, such entrepreneurs will be obliged to supplement their existing mining plant operations plans and to provide security for any potential claims which may arise from the aforementioned activities. The deadline for ensuring compliance with the aforementioned duties was postponed to 19th July 2018.

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