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Ecological Code.doc
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Article 263. Environmental Requirements Applicable upon Conduct of Geophysical Works

1. There shall be prohibited upon conduct of geophysical operations:

1) to use explosive sources of seismic waves and pneumo-sources with parameters that have a harmful impact on the ichthyofauna and its habitat;

2) to employ devices and methods the safety of which is not evidence by documents or based on test geophysical operations;

3) to leave unattended seismic cables in the sea in avoidance of their being torn off and carried away, as well as to trawl them;

2. For the purpose of conserving the population of the Caspian seal, the conduct of seismic works and other business operations during the period from October until May shall be adjusted with seismic profiles at a distance of at lest one nautical mile from the place of concentration of seals on island and glacial rookeries. Preliminary aerial fly rounds shall be made in order to locate the places of high concentrations of seals, taking into consideration their habit of changing the location of rookery.

3. The use of devices for scaring off fish out of the zone of operations may be provided for during seismic exploration.

Article 264. Environmental Requirements Applicable upon Offshore Exploration and Production

1. Wells shall be drilled based on advanced proven principles and methods applied in international practice relating to the environmental protection upon oil operations.

2. Places for offshore drilling platforms within the contract area shall be selected taking into consideration the maximally possible conservation of marine areas of prospective importance for fishery, conservation and reproduction of valuable fish species and other objects of the fishing industry.

3. Drilling operations off a drilling barge or platform in the condition of ice covering the water body accessible for navigation shall be conducted in the permanent presence of an ice breaking ship outfitted with equipment required for containment of possible hydrocarbon spills. The requirement specified in this paragraph shall not apply to drilling operations conducted off a man-made island.

4. There shall be prohibited to carry out the opening up of a payoff horizon of the sub-salt formation and the test of wells with expected extreme pressure and the high content of sulphur hydrogen under the severe ice-bound conditions.

5. For the purpose of securing a sustainable eco-system in the national nature reserve in the northern part of the Caspian Sea and designing offshore exploration and production operations, maximum restrictions shall be imposed on the construction of drilling foundations, test of wells and navigation.

6. Subsoil users shall ensure the carrying out of actions to prevent, restrict and eliminate emergency spills during oil operations.

Article 265. Environmental Requirements Applicable upon Design and Construction of Oil And Gas Pipelines

1. Design and construction of oil and gas pipelines and associated facilities in the zone of impact of tidal fluctuations of the sea level shall be conducted taking into consideration their peak amplitudes.

2. Automated shutoff valves at oil and gas pipelines shall be design subject to assessment of risks associated with possible disturbance of the integrity of oil and gas pipelines.

3. Oil and gas pipelines shall be constructed using technical facilities and equipment that secure the minimum scope of disturbance of the sea bottom, and technologies and methods that may contain the spread of suspended matters in the water column.

4. In the national nature reserve in the northern part of the Caspian Sea there shall be mandatory to embed oil and gas pipelines so as to secure them against damages by moving ices, ship anchors and other man-made impacts.

5. Protection zones in the form of allotments of water sections stretching from the water surface to the bottom and enclosed between parallel plains 500 metres distant from the axis of the extreme pipelines on each side shall be established along oil and gas pipelines.

6. Water discharges upon hydrotesting of oil and gas pipelines shall occur outside of the borders of the national nature reserve in the northern part of the Caspian Sea.

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