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Article 322. Procedure for Compensating Damage Caused by a Violation of the Environmental Legislation of the Republic of Kazakhstan

1. A party who has caused damage to the environment shall have the right to repair such damage voluntarily or otherwise compensate it. The person’s responsibility with respect to the repair or compensation of damage shall be set out in a letter of guarantee.

2. The compensation may be paid in a monetary form at the violator’s own cost, or it may be covered by insurance.

3. The monetary form of compensation includes monies paid for restoration of the environment to the state it was in prior to the damage, the cost of measures on reproduction of natural resources, monies to compensate other losses incurred by the injured party, including loss of profit.

4. If parties agree so, the court may decide that the damage must be compensated in-kind by obliging the party at fault to carry out measures on restoration of the environment.

5. In-kind forms of compensation of damage include the measures on restoration of the environment to the state it existed prior to the damage and provision of an equivalent-value natural resource in exchange for the destroyed or damaged resource. In-kind compensation of damage shall be carried by concluding an agreement and/or contract setting out procedures, conditions, deadlines and extent to which the damage caused would be compensated.

6. The collected amounts of the compensation shall be paid to the state budget or, in cases provided for by the legislation of the Republic of Kazakhstan, to the injured party.

7. Compensation of damage shall not release the party at fault from administrative and criminal liability.

Article 323. Resolution of Environmental Disputes

1. Environmental disputes shall be resolved by courts in the procedure as set out by the legislative acts of the Republic of Kazakhstan.

2. Environmental disputes involving various parties within the context of environmental law may be resolved through negotiations, including with the assistance of experts, or under a pre-agreed procedure of dispute resolution.

Chapter 47. Final and Transition Provisions

Article 324. Transition Provisions

1. Nature use permits that had been obtained by nature users before this Code has entered into force shall remain in force until the expiry of their term of validity.

2. After expiry of the nature use permits individuals and legal entities of the Republic of Kazakhstan must obtain environmental permits.

3. The owners of landfills and long-term waste storages must prepare and reconcile with the environment protection authority actions plans to bring their facilities in compliance with the environmental requirements as set out in Chapter 43 by 31 December 2007.

4. Within one year after this Code has entered into force individuals and legal entities having licenses for environmental project design, regulatory services, environmental appraisal and environmental audit must re-register their licenses with the environment protection authority in the procedure set out by the legislation of the Republic of Kazakhstan. Such licenses shall cease to be valid after expiry of their term.

5. Licenses for carrying out environmentally-hazardous activities as per the list approved by the Government of the Republic of Kazakhstan which may not be subject to licensing under this Code shall cease to be valid on the date this Code enters into force.

Within six months after this Code has entered into force, individuals and legal entities that have licenses for carrying out environmentally-hazardous activities as per the list approved by the Government of the Republic of Kazakhstan shall return such licenses to the environment protection authority.

Article 325. Application of this Code

This Code shall apply to legal relationships that have arisen after this Code has entered into force.

Legal acts regulating the relationships in the field of environment protection, reproduction and use of natural resources, which had been adopted before this Code entered into force, shall apply to the extent they do not contradict the provisions of this Code.

Article 326. Entry into Force

1. This Code shall enter into force on expiry of ten calendar days of its official publication.

2. The following laws of the Republic of Kazakhstan shall be recognised as having ceased to be in force:

1) Law of the Republic of Kazakhstan dated 18 March 1997 “ On Environmental Review” (the Bulletin of the Parliament of the Republic of Kazakhstan, 1997, issue No. 6, page 67; 1998, issue No. 24, page 443; 1999, issue No. 11, page 357; 2003, issue No. 14, page 112; 2004, issue No. 23, page 142);

2) Law of the Republic of Kazakhstan dated 15 July 1997 “ On the Environmental Protection” (the Bulletin of the Parliament of the Republic of Kazakhstan, 1997, issue No. 17-18, page 213; 1998, issue No. 24, page 443; 1999, issue No. 11, page 357; issue No. 23, page 931; 2001, issue No. 13-14, page 171; issue No. 24, page 338; 2002, issue No. 17, page 155; 2004, issue No. 10, page 57, issue No. 23, page 137 and 142; 2005, issue No. 7-8, page 23, issue No. 14, page 57; 2006, issue No. 1, page 5; issue No. 3, page 22);

3) Law of the Republic of Kazakhstan dated 11 March 2002 “On the Protection of the Atmospheric Air” (the Bulletin of the Parliament of the Republic of Kazakhstan, 2002, issue No. 5, page 54; 2004, issue No. 23, page 142; 2006, issue No. 1, page 5; issue No. 3, page 22).

President of the Republic of Kazakhstan

N. NAZARBAYEV

Astana, Akorda, 9 January 2007

No. 212-III ZRK

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