Draft LAW OF THE KYRGYZ REPUBLIC On Amendments and Addenda to the Land Code of the Kyrgyz Republic Article 1. To introduce the following amendments and addenda to the Land Code of the Kyrgyz Republic (Bulletin of the Jogorku Kenesh of the Kyrgyz Republic, 1999, N 9, art. 440): 1. Article 1: "Concepts Applied in This Code" shall be supplemented with sub-item 31) as follows: "31) The State Reserve of Lands with Mineral Deposits (lands for subsoil use) is the land with prospected deposits and manifestations of mineral resources with reserves and resources recorded in the State Balance of Mineral Reserves. 32) The authorized body on subsoil use is a state body specified by the Government of the Kyrgyz Republic and which provides land parcels for subsoil use from the State Reserve of Lands with Mineral Deposits"; 2. Item 3 of article 5 shall be amended as follows: - in part 1 after words “agricultural lands ” with words “and lands provided for subsoil use”; - with part 2 of the following content: “Lands for subsoil use for foreign persons shall be provided for a temporary use in the same way as for subsoil users who have Kyrgyz republic citizenship” 3. Article 10: "Land Fund" shall be supplemented with sub-item 8) as follows: "8) lands for the State Reserve of Mineral Deposits". 4. Chapter Two shall be supplemented with Article 19-1 as follows: Article 19-1. "Competence of the State Body on Subsoil Use in the Sphere of Land Relations Management". The competence of the state body on subsoil use in relation to the land for subsoil use shall include: 1) maintaining the State Reserve of Lands with Mineral Deposits; 2) granting the right to use land parcels at the boundary of lands of State Reserve of Lands with Mineral Deposits; 3) maintaining the land cadastre of the State Reserve of Lands with Mineral Deposits, approval of land management schemes and project designs for subsoil use; 4) control over the use and protection of lands from the State Reserve of Lands with Mineral Deposits, reclamation of land parcels when subsoil use has been completed; 5) submitting to the Government of the Kyrgyz Republic information on lands to be transferred to the category of lands in the reserves of lands with mineral deposits; 6) addressing other issues pertaining to regulation of land relations as envisaged by this Code". 5. Article 28 shall be revised and worded as follows: 1. The right to use a land parcel from the lands of the State Reserve of Mineral Deposits shall be granted by the authorized body on subsoil use. 2. Land parcels for subsoil use may be granted only for temporary use for a time period while the right to subsoil use is valid. 3. Borders and the size of the land parcel shall be specified by the technical design or a technological scheme for withdrawal of subsoil waters. 4. Should mineral reserves be prospected in the land parcel owned or used, then the Government of the Kyrgyz Republic upon recommendation of the authorized state body on subsoil use shall make a decision on transfer of these lands to the category of lands of the State Reserve of Mineral Deposits. 6. If the land parcel with prospected mineral resources is owned or used by third persons, then the state, when taking a decision on their development or expropriation of the land parcel, shall be obliged to compensate the losses incurred by the owner of the land user and provide him/her another equivalent land parcel ". 6. Chapter Three shall be supplemented with Articles 28-1, 28-2, 28-3 with the following wording: "Article 28-1. Procedure to Provide Land for Subsoil Use 1. To obtain the right to temporary use of a land parcel for subsoil use, the person, who has the right to prospect or develop mineral deposits shall submit the following to the state body on subsoil use: 1) an application; 2) drawings with corner points coordinates for mining and land allotments of the subsoil use object; 3) in case of disturbing land integrity calculations for compensation of losses of agricultural production of the forestry fund. 2. The time period for consideration of the application and issuing a document for the right to use the land parcel may not exceed 30 calendar days during which land rights holder shall make a decision on providing the land plot. Private land owners can provide land plots to subsoil users on the basis of agreement. 3. In case the requested land parcel has been allocated to another subsoil user, who earlier obtained the right to subsoil use, the person, who has the right to subsoil use, shall agree with the owner of land right the procedure for the land parcel use according to the technical design. 4. In case of transfer (surrender) of the right to subsoil use to the third person, the latter shall be also transferred the right to temporary use of the land parcel on the date of the transfer. Article 28-2. Conditions for Development of the Area with Mineral Deposits 1. It shall be prohibited to design and construct settlements, industrial complexes and other auxiliary facilities until receiving a conclusion on the presence of lack of mineral resources in the plots of the development area from the authorized state body on subsoil use. 2. Development of the areas with mineral deposits in the land for subsoil use, as well as building underground facilities at these deposits not related to development of mineral resources shall be allowed upon agreement with the state body on subsoil use in the following exclusive cases: 1) if estimates on ground surface deformation caused by future development do not exceed the values allowed for the facility to be built; 2) if the site for the facility to be built has been specified over the recovered mineral resources. Article 28-3. Use of the Land Parcel when Prospecting and Surveying Mineral Deposits 2 1. In case of a geological survey of subsoil (prospecting mineral deposits and other design and survey works), the land parcel shall not be expropriated, and the subsoil user shall receive a written consent from the local state administration or the local self-government for temporary use of the land parcel. 2. In case of a geological survey of subsoil, which disturbs the integrity of the ground surface (prospecting mineral deposits and other design and survey works), the land parcel shall not be expropriated, and the subsoil user shall receive a written consent from the local state administration or the local self-government for temporary use of the land parcel with a mandatory payment for disturbances of the integrity of the ground surface and subsequent reclamation of the land parcel. 3. The consent to provide a land parcel shall not be a transaction on the land parcel lease, the fee for its provision shall not be levied on the subsoil user. 4. The lands on which the consent has been granted to conduct geological survey of subsoil may be used by the owner of the right to land for agricultural and other purposes.". 7. Article 60 shall be changed as follows: In Item 2: - Exclude words “with a period of 2 years with following prolongation”; - Word “Agreement” shall be changed into “Annex” in Item 3: - Word “Agreement” shall be changed into “Annex” Sub-item 7 of Item 1 of the article 66 shall be excluded. 8. Article 62 shall be amended with sub-item 11 of the following content: “11) while termination of concession agreement, agreement on mining concession, agreement on production sharing and subsoil use right. 9. Chapter 14-1 shall be amended with the following: "Article 83-1. Lands of the State Reserve of Mineral Deposits 1. Lands of the State Reserve of Mineral Deposits shall be the land with prospected deposits and manifestations of minerals with the reserves and resources recoded in the State Balance of minerals of Kyrgyz Republic. 2. Lands of the State Reserve of Mineral Deposits shall be provided by the authorized body on subsoil use only for the purpose of developing mineral deposits in accordance with legislation of the Kyrgyz Republic on subsoil. 3. Construction of any buildings or facilities not related to development and exploitation of mineral deposits on the lands of the State Reserve of Mineral Deposits shall be prohibited. 4. Before mineral deposits are developed, lands of the State Reserve of Mineral Deposits may be provided for temporary use to citizens of the Kyrgyz Republic for agricultural use. 5. After full or partial development of mineral resources lands of the State Reserve of Mineral Deposits shall be subject to reclamation and be transferred by the Government of the Kyrgyz Republic to another category". 6. After reclamation of disturbed lands on full or partial development of mineral deposit an authorized state agency for subsoil use provides the Government of KR information on reclamation works held on these lands for their subsequent transfer into different category of land fund of KR. Article 2. Within one year the Government of the Kyrgyz Republic shall transfer the lands with 3 mineral deposits recorded in the State Balance of mineral deposits to the category of lands of the lands of State reserve of lands of mineral deposits. Article 3. To establish, that re-registration of title and entitlement documents in connection with the adoption of this law shall not be required for the land parcels provided earlier for development of mineral deposits. Article 4. The Government of KR shall bring its legal and regulatory documents into harmony according to the present Law. Article 5. This Law shall become effective from one month after its publication. President of the Kyrgyz Republic 4