Article 83. Decision on Mandatory Environmental Audit

1. A decision to conduct the mandatory environmental audit shall be taken by the environment protection authority within one month after the circumstances set out in Article 81.2 of this Code have been identified.

2. A decision to conduct the mandatory environmental audit shall be documented in the form of an order for mandatory environmental audit.

3. The form of an order for mandatory environmental audit should be approved by the environment protection authority.

4. An order must indicate:

1) full name or name of the audited entity;

2) location of the audited entity;

3) nature of potential risks for the environment that are posed by business and other activities of the audited entity;

4) grounds for the mandatory environmental audit; and

5) timing for submission of the findings of the mandatory environmental audit.

5. An order for mandatory environmental audit shall be sent to the director of an audited entity.

Article 84. Specifics of Mandatory Environmental Audit

1. The mandatory environmental audit shall be conducted within no longer than six months following the receipt by the audited entity of an order for mandatory environmental audit.

2. For the purpose of developing an audit plan, an environmental auditor or environmental audit firm shall review the order for mandatory environmental audit, reasons of the audit, environmental problems typical of the audited entity, and other aspects.

Article 85. Requirements to Environmental Audit Reports

1. An environmental audit report to be issued on completion of the mandatory environmental audit must contain:

1) information proving the competence of the environmental auditor and environmental audit firm;

2) general information about the audited entity;

3) reasons for an environmental audit;

4) environmental audit plan;

5) list and overview of the information gathered;

6) results of visual inspection of the audited entity and interview of its employees;

7) results of special studies;

8) assessment of environmental risks (in quantitative and qualitative terms);

9) list of recommendations to enhance environmental safety; and

10) conclusions as to the level of safety of the audited entity for the environment, violations revealed, reliability of the documentation maintained, and environment protection reports.

2. The form of the initiative environmental audit report shall be established by an environmental audit agreement.

3. The initiative environmental audit report shall be confidential. Only the audited entity may disclose the information contained in the initiative environmental audit report.

Article 86. Procedure for Consideration of Mandatory Environmental Audit Report

1. An environmental audit report issued on completion of the mandatory environmental audit shall be sent by the environmental auditor or environmental audit firm to the environment protection authority and director of the audited entity.

2. The findings of the mandatory environmental audit shall be used by the audited entity in order to take appropriate steps to comply with the environmental laws of the Republic of Kazakhstan, reduce negative effect of its activities on the environment, prevent damage to the environment, and ensure reliability of the environmental reports.

3. In the event that the mandatory environmental audit reveals that the environmental reports of an audited entity are untrue, the audited entity must, within one month from the date of receipt of the environmental audit report, bring its reports in compliance with the recommendations of the environmental auditor, take other steps to comply with the environmental laws of the Republic of Kazakhstan, and inform the environment protection authority of the steps taken.

4. The environment protection authority shall consider the environmental audit report issued on completion of the mandatory environmental audit within one month from the date of receipt of such report.

5. The findings of the mandatory environmental audit shall be used by the environment protection authority to obtain reliable information in regards to compliance by the audited entity with the environmental requirements and environment quality standards.

6. Based on the results of consideration of environmental audit reports the environment protection authority may:

1) seek in court suspension of the operation of the audited entity;

2) revise the terms and conditions of the environmental permit or make a submission to the competent government agencies proposing to revise the terms and conditions of agreements (contracts) for use and recovery of natural resources, and other nature use permits; and

3) recommend that the production environmental control programme be amended.

7. Disputes arising in respect to the environmental audit report of the mandatory environmental audit shall be resolved in the procedures established by laws of the Republic of Kazakhstan.

Article 87. Environmental Auditor

1. An environmental auditor shall be an individual licensed to perform environmental protection-related works and services.

2. An environmental auditor shall have the right to conduct the environmental audit as an individual entrepreneur or as an employee of an environmental audit firm.

Article 88. Environmental Audit Firm

1. An environmental audit firm shall be a profit-making organisation incorporated in the form of a limited liability partnership and licensed to perform environmental protection-related works and services.

2. Foreign environmental audit firms may conduct environmental audit in the Republic of Kazakhstan only through appropriate resident environmental audit firms, incorporated in the Republic of Kazakhstan.

3. The number of environmental auditors in an environmental audit firm shall be at least three.

Article 89. Chamber of Environmental Auditors

1. The chamber of environmental auditors shall be formed with a view to protecting the rights and representing the legitimate interests of environmental auditors and environmental audit firm vis-à-vis the government agencies.

The chamber of environmental auditors is a non-profit, independent, professional and self-administered organisation, acting based on its charter which shall be approved by a general meeting of its members, and shall be financed by way of membership fees and other sources not prohibited by laws of the Republic of Kazakhstan.

2. The chamber of environmental auditors shall regulate the activities of environmental auditors and environmental audit firms, and develop the standards of environmental audit based on the international practice in accordance with laws of the Republic of Kazakhstan.

Article 90. Rights of Environmental Auditors and Environmental Audit Firms

Environmental auditors and environmental audit firms may:

1) independently determine the methods of environmental audit;

2) receive and verify the documentation as may be necessary to fulfil the terms and conditions of the environmental audit;

3) engage, on a contractual basis, various experts, other than the persons indicated in Article 92 of this Code, in the environmental audit; and

4) refuse to conduct the environmental audit, or to issue an environmental audit report, in the event that an audited entity violates the terms and conditions of the environmental audit agreement.

Article 91. Obligations of Environmental Auditors and Environmental Audit Firms

Environmental auditors and environmental audit firms shall:

1) inform of impossibility to conduct the environmental audit by reason of the circumstances set out in Article 92 of this Code;

2) ensure safe-keeping of the documents received from an audited entity, and those that are prepared in the course of the environmental audit;

3) inform an audited entity of any revealed non-compliance of the documents with the requirements established by laws of the Republic of Kazakhstan;

4) keep confidential any environmental audit reports, and the information received in connection with the environmental audit, which constitute commercial and other legally protected secrets;

5) if revealed during the mandatory environmental audit, inform the environment protection authority of the violations of the environmental laws of the Republic of Kazakhstan; and

6) fulfil other requirements arising out of contract obligations under an environmental audit agreement.