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Article 268. Environmental Requirements Applicable upon Mothballing and Liquidation of Oil Facilities

1. The mothballing or liquidation of facilities for offshore oil operations, exploration, including of solid mineral resources, mineral and/or potable waters shall be carried out in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use.

2. In respect to the mothballing of wells upon completion of tests, subsoil users shall carry out mothballing operations, ensure safety of drilling foundations and the reliable sealing-in of wells until operations are resumed.

3. In liquidating wells that were drilled off a man-made ground (submarine berm or island), subsoil users shall ensure the sealing-in of wells and control over the condition of a man made foundation after having cleaned it up from possible contamination with hydrocarbons and other chemical substances. If the island (berm) is water-worn, subsoil users shall mark it up with a guidepost or buoy, until the foundation is finally levelled, and submit the coordinates to the authorised government agencies for study and use of subsoil, inland waterborne transport to enable them to mark up the nautical charts to ensure safe navigation.

4. Upon liquidation of wells that were drilled off a platform of any type, their constructions shall be fully dismantled and removed, whilst head walls of sealed wells shall be cut off at the sea bottom level to prevent obstruction to fishing and navigation.

5. Man-made mining islands that were decommissioned shall be liquidated. If metallic or reinforced concrete structures are used, reinforced concrete structures shall be removed and metallic structures shall be cut off at the sea bottom level.

6. The mothballing and liquidation of drowned and partially submerged old wells shall be carried out in accordance with the project that includes environmental impact assessment and that has passed, in accordance with the legislation the Republic of Kazakhstan, the state environmental review, a review for natural and man-made disasters and a review required to be conducted in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use. A plan for emergency response to oil spills shall be developed and approved. No operations shall be allowed to be carried out without availability of necessary equipment, specialists, transport and other means required for preventing and responding to emergencies in accordance with plans for emergency response to oil spills.

Article 269. Monitoring of the Environment of the National Nature Reserve in the Northern Part of the Caspian Sea

1. In the national nature reserve in the northern part of the Caspian Sea, the environmental protection authority shall carry out the state environmental monitoring.

2. Subsoil users that conduct any business operations in the national nature reserve in the northern part of the Caspian Sea shall conduct production environmental monitoring.

3. Environmental impact assessment materials prepared at each stage of oil operations shall envisage production monitoring that embraces:

1) baseline environmental studies prior to the start of each stage of oil operations (geophysical surveys, exploration drilling, hydrocarbons mining as well as liquidation of facilities);

2) monitoring of pollution sources;

3) monitoring of the environmental condition; and

4) monitoring of the consequences of emergency pollution of the environment.

4. The state environmental and production monitoring shall include observations of the following parameters:

1) levels of water contamination as well as sea bottom sediments according to physical, chemical and hydro-biological parameters at the Caspian Sea sections of various status (regime);

2) the balance and transformation of contaminants at certain sections of the Caspian Sea (sampling points in the open sea, bays, estuaries, rivers that run into the sea, and areas of oil operations) on the border of the air-water division and their build-ups in bottom sediments (precipitations); and

3) natural circulatory processes, hydro-meteorological parameters (temperature of water, currents, velocity and directions of winds, atmospheric precipitations, atmospheric pressure, air humidity).

5. If necessary and at request of the environment protection authority, subsoil users shall carry out additional surveys of the condition of the environment.

6. Subsoil users shall determine the types and methods of observations over the condition of the environment in a manner established by the environment protection authority.

7. In the conduct of production monitoring, subsoil users shall take into consideration the results of observations during previous years and make use of the figures of existing stations located at the operation areas (within the contract area and its surroundings) in order to carry on the long term scope of observations.

8. In the event of emergencies, immediate arrangements shall be made to initiate the monitoring of the consequences of emergency pollution of the environment.

9. Subsoil users shall submit the results of production monitoring to the environment protection authority.

Chapter 39. Environmental Requirements Applicable upon Use of Radioactive Materials, Atomic Energy and Ensuring Radiation Safety

Article 270. Transboundary Movements of Radioactive Waste and Materials

1. There shall be prohibited to import, for the purpose of storage and burial, radioactive waste into the Republic of Kazakhstan from other states, except for the Republic's own radioactive waste that had been exported for processing to other states. There shall also be prohibited to bury (place) radioactive waste and materials on the land surface and in the subsoil until special actions aimed at preventing the penetration of radioactive substances in the environment have been completed.

2. The importation of radioactive materials, semi-finished products, raw materials, and components containing radioactive substances that exceed the withdrawal levels established by radioactive safety regulations shall be carried out subject to resolutions of the Government of the Republic of Kazakhstan and after having obtained affirmative statement of opinion of the state environmental review.

3. Upon transboundary movement of radioactive materials, nature users shall take measures aimed at ensuring compliance with the rules of international law upon such movement. In such case:

1) nature users shall take measures aimed at obtaining permissions and giving preliminary notification as well as obtaining consent to the movement of the country of destination;

2) transboundary movement via the transit countries shall be carried out, provided that the international obligations that correspond to specific types of transport means, shall have been met;

3) there shall be prohibited to ship spent fuel or radioactive waste for storage or burial to a destination south off the latitude of 60 S.

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