Home > Compensations > Text

CompensationsIn case of divergence of interpretation, the Chinese text shall prevail.

Notice of the General Office of the Ministry of Land and Resources on Properly Carrying out the Collection of Compensations for Sino-foreign Cooperative Exploitation of Petroleum Resources

Document No.:Guo Tu Zi Ting Fa [2012] No.14

Taxes:Compensations

Date of Promulgation:2012-03-31

IssueDepartment:Ministry of Land and Resources

Date of Implementatio:2012-03-31

Annex:

For the purpose of carrying out the spirits of the "Decision of the State Council on Revising the 'Regulations of the People's Republic of China on the Exploitation of On-shore Petroleum Resources in Cooperation with Foreign Enterprises'" (Order No.606 of the State Council), the "Notice of the State Council on Revising the 'Regulations of the People's Republic of China on the Exploitation of Off-shore Petroleum Resources in Cooperation with Foreign Enterprises'" (Order No.607 of the State Council), and the "Notice of the Ministry of Land and Resources on Revising the 'Supplementary Provisions on Several Issues in the Management of Collection of Compensations on Mineral Resources'" (Guo Tu Zi Fa [2011] No.229), and doing a good job with the collection of compensations for Sino-foreign cooperative exploitation of petroleum resources, in accordance with the "Mineral Resources Law of the People's Republic of China" and the "Provisions on the Administration of Collection of Compensations on Mineral Resources" (Order No.150 of the State Council), the relevant issues are hereby notified:

I. Chinese and foreign enterprises shall pay compensations for mineral resources according to law for cooperative exploitation of onshore and offshore petroleum resources within the territory of the People's Republic of China and the sea areas under the jurisdiction of the People's Republic of China. The petroleum resources mentioned in the Notice shall include conventional oil, natural gas and such unconventional oil and gas resources as coal-bed methane. 

II. The compensation for Sino-foreign cooperative exploitation of onshore and offshore petroleum resources shall be collected locally by provincial in-charge departments of land and resources of the province (autonomous region, municipality) where the mining-right cooperative block is located. If the scope of mining rights of onshore cooperative blocks covers cross-provincial administrative regions, the provincial in-charge land and resources departments as authorized by the Ministry of Land and Resources shall be responsible for the collection of compensation; administrative areas of offshore cooperative blocks shall be determined according to the administrative boundaries of waters approved by the State Council, and the provincial in-charge  land and resources departments of the administrative areas are responsible for the collection; for  waters that crosses the administrative boundaries or if the administrative boundaries of waters have not yet been determined, the provincial in-charge land and resources department as authorized by the Ministry of Land and Resources shall be responsible for the collection.

III. The compensation for Sino-foreign cooperative exploitation of onshore and offshore petroleum resources shall be calculated and collected according to the calculation formula and the rates provided for in Order No. 150. One shall be taken as the coefficient of extract recovery rate, unless otherwise provided, in which case the provisions shall prevail.

IV. The compensation for Sino-foreign cooperative exploitation of onshore and offshore oil resources shall be paid by the holders of mining rights and included in the network report system for statistics of the collection of compensations on mineral resources.

V. The holders of mining rights of Sino-foreign cooperative blocks may apply for tax relief according to relevant provisions in Order No.150. In-charge departments of land and resources of relevant provinces (autonomous regions, municipalities) shall standardize the specific conditions of tax relief as well as the reporting and approval requirements. Those who are granted tax relief shall, within 1 month as of the date of approval, report to the Ministry of Land and Resources for the record.

VI. For the purpose of the annual inspection of enterprises' development and utilization of Sino-foreign cooperative exploitation of oil resources, the related materials, such as relevant bills for the payment of compensation and contract documents of the cooperative exploitation of oil resources, are required to be submitted, and in-charge departments of land and resources at the provincial level need to issue relevant documents to prove whether or not the compensation has been paid as required. For those who fail to obtain the supporting document therein, their annual inspections shall not be passed, furthermore, their applications for continuation, change and transfer of mining rights shall not be handled.

VII. Both Chinese enterprises and foreign enterprises that are engaged in the Sino-foreign cooperative exploitation of oil resources shall actively fulfill their legal obligations, and pay the required compensations on time. For those who fail to pay the compensations of mineral resources in a full amount within the stipulated period, or who make false reporting, concealment and other means for non-payment or under payment of compensations, and who fail to submit the relevant information according to reporting requirements, the in-charge departments of land and resources shall impose appropriate punishment under the relevant provisions of the Order No.150.

VIII. For contracts that had been signed before November 1, 2011 for the purpose of Sino-foreign cooperative exploitation of onshore and offshore oil resources, the mining royalty shall still be paid, within the life of contract as agreed, according to relevant state provisions prevailed at that time.

The collection of compensations of mineral resources from Sino-foreign cooperative oil resources projects is an important statutory function of the in-charge departments of land and resources, consequently, these departments at all related provinces (autonomous regions, municipalities) shall attach great importance to it and take effective measures to ensure the proper collection and management.

The Notice shall be valid and remain in force for 8 years from the date of promulgation.

2012-03-31


Customer service

88393678(Information Support)

songf@eshui.net(Information Support)

Public messages

Disclaimer

All the information on this website is reprinted from government websites, newspapers, Gazettes, domestic and foreign medias and other publications.

Please check the official publications, originals of outgoing documents and sources of reprint for purposes of authenticity, accuracy and legitimacy of the information published on this website.

The information on, the materials provided and the performance of this website is provided on an "as is" and "as available" basis. We make no warranty of any kind in relation to or connection with the availability, accuracy or reliability of this website or any of its materials and information, including but not limited to any warranties, representations, and guarantees as to, title, risk, non-infringement, accuracy, reliability, merchantability, use, correctness, fitness for a particular purpose or otherwise, or that use of this website will be uninterrupted or error-free. If you become aware of any inaccuracies or errors in any materials or information on our website, we would be appreciate it if you would inform us of such inaccuracies or errors immediately by emailing us at songf@eshui.net.

We shall not under any circumstances be liable for any direct, indirect, incidental, special or consequential damages, losses, liabilities or any business interruption in relation to the use of or inability to use any information contained on this website (whether foreseeable or not and even if we have been informed of such likelihood).

This website may contain links to third-party websites which are not maintained by us. We are not responsible for the content of those websites. The inclusion of any link to such websites does not imply approval or an endorsement by us of the linked websites or the contents thereof and we make no representations or warranties concerning the linked sites nor shall it be liable for the same.

Copyright: Ministry of Commerce, the People's Republic of China

Supported by:China International Electronic Commerce Center

Tel: (86 10) 68651200(Customer Service)

Fax: (86 10) 65677512

Information Support: Beijing Zerui Certified Public Accountants Co.,Ltd.

Approved by:Department of Electronic Commerce and Informatization, Ministry of Commerce, PRC

Jing ICP Bei No. 05004093

E-mail:hanlx358@126.com

Tel: 61943289 - 8001