On Gas and Gas Supply

The Law of the Republic of Kazakhstan dated 9 January 2012 No. 532-IV

Unofficial translation

      Note of RCLI!
      The order of enforcement of this Law of the Republic of Kazakhstan see Article 35

      Footnote. Throughout the whole text the words “public-private partnership in the sphere of gas and gas supply” and “public-private partnerships in the sphere of gas and gas supply” are respectively substituted by the words “partnership in the sphere of gas and gas supply” and “partnerships in the sphere of gas and gas supply” by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      This Law determines legal, economic and organisational regulatory frameworks of social relations in the sphere of gas and gas supply in the Republic of Kazakhstan and aimed at provision of conditions to meet the internal necessities of the Republic of Kazakhstan in gas, as well as for effective, reliable and safe operation of objects of gas supply systems.

Chapter 1. GENERAL PROVISIONS

      Article 1. Basic definitions used in this Law

      The following basic definitions shall be used in this Law:
      1) a filling station – a technological complex intended for storage and retail trade of the liquefied petroleum gas to vehicle owners, using it as fuel;
      2) a gas-filling compressor station – a technological complex intended for compressing, storage and retail trade of commercial gas to vehicle owners, using it as fuel;
      3) an accreditation – a procedure of official recognition by an authorised body of gas-network organisations as complying with the requirements, established by the legislation of the Republic of Kazakhstan on gas and gas supply;
      4) a retail trade – entrepreneurial activity on the sale of commercial and (or) liquefied petroleum gas to customers in the territory of the Republic of Kazakhstan for own needs without the purposes of further sales;
      5) a single right of way – a hookup of main gas pipelines (or divisions) and gas pipelines systems (including with different pressure), ensuring the transporting of commercial gas in a single direction (transportation flow), laid in a parallel on one route;
      6) gas –raw, commercial, liquefied petroleum and liquefied natural gas;
      7) gas supply – an activity in the sphere of production, transporting (transportation), storage and sales of commercial, liquefied petroleum and (or) liquefied natural gas;
      8) a protective zone of objects of gas supply systems – a territory with the special use conditions, that shall be established all-around the objects of gas supply systems in order to secure safe operation conditions and eliminate a risk of their damaging;
      9) a gas supply system – a set of technologically connected objects, intended for production, transporting (transportation), storage, sales and consumption of commercial or liquefied petroleum gas;
      10) gasification – a set of actions aimed at usage of the commercial and (or) liquefied petroleum gas as fuel on objects of municipal housing economy, industrial, agricultural and other objects;
      11) gas facilities – technical products of the full operational compatibility, used as component elements of gas pipelines (expansion joints, condensate gathering tanks, safety valve, stop valve), as well as gas-burning appliances (gas appliance, ovens and stoves);
      12) a partnership in the sphere of gas and gas supply – a form of interaction of the state and investor on the mutually beneficial conditions for solution of strategic and social objectives on securing advanced processing of associated gas belonged to the Republic of Kazakhstan and manufacturing of products with the high added value;
      13) a gas-network organisation – a legal entity that has accreditation certificate and carrying out an operation of gas-filling station, grouped tank installations, as well as wholesale and retail trade of liquefied petroleum gas on conditions, established by this Law;
      14) a gas pipeline –a construction that consists of pipes with the stop valves, connected together and designed for transporting of gas in gaseous or two phase state;
      15) a gas-distribution system – a set of technologically connected constructions that consists of gas pipelines (line pipes) and objects associated with them, designed for transporting of commercial gas from a main gas pipeline to gas-consuming systems;
      16) a gas-distribution organisation – a legal entity that carries out transporting of commercial gas on a gas-distribution system, technical operation of a gas-distribution system, as well as wholesale and retail trade of commercial gas on conditions, established by this Law;
      17) a gas transportation organisation – a legal entity that renders services on transporting of commercial gas in connecting, main gas pipelines and (or) storage of commercial gas in commercial gas storages on conditions, established by this Law;
      18) a gas-filling item – an engineering construction designed for storage, discharge and filling of the liquefied petroleum gas to domestic bottles;
      19) a gas-filling station – a set of technologically connected production and other objects, designed for storage, discharge and filling of the liquefied petroleum gas to railway tanks, liquefied gas carriers, domestic bottles, as well as repair and utilization of domestic bottles;
      20) a gas-consuming system – a set of gas pipelines (line pipe) and gas facilities, designed for intake of commercial gas from gas-distribution system or liquefied petroleum gas from grouped tank installation, as well as their usage in as fuel and (or) raw materials;
      21) metering instruments –measuring tools and other technical equipment, that fulfil the following functions: measuring, accumulation, storage, display of information on expenses, volume, temperature, pressure of the gas and operating hours of the instruments;
      22) a connecting gas pipeline – a gas pipeline designed for transporting of the raw gas from the contract area to a gas processing plant or business customer of the raw gas or for transporting of commercial gas from a gas processing plant to main gas pipeline;
      23) a flow gas pipeline – a gas pipeline designed for transporting of the gas within the contract area;
      24) a municipal consumer – an individual or legal entity that acquires commercial and (or) liquefied petroleum gas for public living needs during entrepreneurial, non-commercial or other activity without the purposes of its following sales;
      25) an authorised body in the field of municipal economy – a central executive body that carries out management and cross-sector coordination in the sphere of gas and gas supply within the boundaries (lines) of inhabited localities;
      26) a wholesale trade – entrepreneurial activity on sale of commercial, liquefied petroleum and (or) liquefied natural gas on a local market for the purpose of following sale or beyond the boundaries of the Republic of Kazakhstan;
      27) internal necessities of the Republic of Kazakhstan – volumes of commercial and (or) liquefied petroleum gas, required for consumption in the territory of the Republic of Kazakhstan;
      28) a main gas pipeline – an engineering construction that consists of one or several gas pipelines (line pipe) and objects, associated with them, securing increase and reduction of pressure of the transportable gas, remote operations, communication and other communication facilities, designed for transporting of commercial gas. Composition of objects of main gas pipeline shall be determined by design documentation and requirements of technical regulations;
      29) a producer – a legal entity that carries out manufacturing of commercial, liquefied petroleum and (or) liquefied natural gas;
      30) a business customer – a legal entity that acquires gas for using as fuel and (or) raw materials in industrial production;
      31) a liquefied petroleum gas – a mixture of light hydrocarbons (propane-butane fraction, propane, butane) transformed into liquid state for the purpose of transporting and storage, satisfying requirements of technical regulations and national standard on quality and quantitative content of components;
      32) a liquefied natural gas – a multicomponent mixture of hydrocarbons with predominant content of methane transformed into liquid state for the purpose of transporting and storage, that is a product of processing of the raw gas and satisfying requirements of technical regulations and national standard on quality and quantitative content of components;
      33) transporting – an operating procedure of transfer of the raw or commercial gas through pipelines;
      34) a commercial gas – a multicomponent mixture of hydrocarbons with predominant content of methane in the gaseous state, that is a product of processing of the raw gas and satisfying requirements of technical regulations and national standard on quality and quantitative content of components;
      35) a commercial gas storage – a set of technologically connected production and other objects, designed for commercial gas storage;
      36) a grouped tank installation – an engineering construction that consists of a group of storage capacities, stop and control valves, gas pipelines and designed for storage and feeding of the liquefied petroleum gas in gas-consuming systems;
      37) a domestic customer – an individual who acquires commercial and (or) liquefied petroleum gas for domestic needs with no intend to use in entrepreneurial activity and its following sales;
      38) a consumption rate – a rated quantity for domestic customers who do not have the metering instruments, reflecting average monthly amount of commercial or liquefied petroleum gas, used by them;
      39) a customer – a domestic, municipal or business customer;
      40) an authorised body – a central executive body that carries out the state regulation of production, transporting (transportation), storage and wholesale trade of gas, as well as retail trade and consumption of commercial and liquefied petroleum gas beyond the boundaries of inhabited localities;
      41) a national operator – a legal entity where the state or national controlling holding company or national company determined by the Government of the Republic of Kazakhstan is an owner of controlling block of stock, and that carries out activity in the sphere of gas and gas supply in order to provide internal necessities of the Republic of Kazakhstan in commercial gas;
      42) a raw gas – a produced crude natural, associated, slate gas, gas of coal basins, as well as a hydrogen gas of other origin.
      Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 10.07.2012 No. 31-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 2. Legislation of the Republic of Kazakhstan on gas and gas supply

      1. The legislation of the Republic of Kazakhstan on gas and gas supply shall be based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.
      2. If an international agreement, ratified by the Republic of Kazakhstan establishes the other rules, than those, containing in this Law, the rules of international agreement shall be applied.

      Article 3. The scope of application of this Law

      1. This Law shall extend to relations in the sphere of gas and gas supply.
      2. Provisions of this Law shall not extend to relations, arising during sales of liquefied petroleum gas in the bottles, the capacity of which is less than one kilogram.

      Article 4. Main objectives, principles and goals of state regulation in the sphere of gas and gas supply

      1. The provision of energy and ecological security, improvement of social and economic conditions of population of the Republic of Kazakhstan is the objectives of state regulation in the sphere of gas and gas supply.
      2. The state regulation in the sphere of gas and gas supply shall be based on the following principles:
      1) security and reliability of gas supply;
      2) rational use of gas resources;
      3) priority of meeting the internal necessities of the Republic of Kazakhstan in commercial and liquefied petroleum gas, manufactured in the territory of the Republic of Kazakhstan;
      4) priority in gasification of the objects, located in the territory of the Republic of Kazakhstan;
      5) balance of a pricing policy in the sphere of gas and gas supply.
      3. The goals of state regulation in the sphere of gas and gas supply shall be:
      1) establishment of unified commercial gas supply system;
      2) arrangement of conditions for uninterrupted supply of internal necessities of the Republic of Kazakhstan in commercial and liquefied petroleum gas;
      3) increase of commercial and liquefied petroleum gas ratio in the common volume of consumed fuel and energy resources in the Republic of Kazakhstan.

Chapter 2. COMPETENCE OF BODIES OF STATE ADMINISTRATION IN THE SPHERE OF GAS AND GAS SUPPLY

      Article 5.Competence of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan shall:
      1) develop principal directions of a state policy in the sphere of gas and gas supply;
      2) determine a national operator;
      3) approve the procedure for preparation of general gasification scheme of the Republic of Kazakhstan;
      4) approve the general gasification scheme of the Republic of Kazakhstan;
      5) confirm the procedure for price determination of the raw and commercial gas, acquired by a national operator within the frame of preferential right of the state;
      6) approve the limit prices of wholesale trade of commercial and liquefied petroleum gas on a local market and procedure for their determination;
      7) approve the procedure for planning on delivery of the liquefied petroleum gas on a local market of the Republic of Kazakhstan;
      8) approve the rules of accreditation of gas-network organisations;
      9) approve the procedure and conditions of transferring the associated gas to investors within the frame of a partnership in the sphere of gas and gas supply;
      10) approve the procedure for carrying out the centralised operational dispatch management of operating regimes of objects of unified commercial gas supply system;
      11) approve the procedure for submission of information on manufacturing monitoring, transporting (transportation), storage and sales of commercial, liquefied petroleum and liquefied natural gas;
      12) approve standard form contracts of wholesale trade of commercial and liquefied petroleum gas, as well as of maintenance support of gas-consuming systems and gas facilities of municipal and domestic customers;
      13) approve the procedure for wholesale trade and use of commercial and liquefied petroleum gas;
      14) approve the procedure for settlement and confirmation of consumption rate of commercial and liquefied petroleum gas;
      15) approve the technical regulations in the sphere of gas and gas supply;
      16) approve the requirements on safety of objects of gas supply systems;
      17) regulate export of commercial, liquefied petroleum and liquefied natural gas;
      18) decide on construction of export and (or) transit gas pipelines;
      19) fulfil other functions, assigned on it by the Constitution, this Law, other Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

      Article 6.Competence of authorised body

      An authorised body shall:
      1) ensure implementation of a state policy in the sphere of gas and gas supply;
      2) develop and approve the regulatory legal acts, governing relations in the sphere of gas and gas supply within its competence;
      3) develop the procedure for preparation of the general gasification scheme of the Republic of Kazakhstan;
      4) develop the general gasification scheme of the Republic of Kazakhstan;
      5) control over implementation of the general gasification scheme of the Republic of Kazakhstan;
      6) develop the procedure for price determination of the raw and commercial gas, acquired by a national operator within the frame of preferential right of the state;
      7) develop the proposals about the level of limit prices of wholesale trade of commercial and liquefied petroleum gas on a local market and procedure for their determination;
      8) develop the procedure and conditions of transferring the associated gas to investors within the frame of a partnership in the sphere of gas and gas supply;
      9) coordinate the alienation of objects of unified commercial gas supply system, that is a property of national operator or gas transportation and (or) gas-distribution organisations, where fifty and more percent of voting shares (partnership shares) belong to a national operator;
      10) organise the balancing of production, sales and consumption of commercial and liquefied petroleum gas;
      11) develop the procedure for carrying out the centralised operational dispatch management of operating regimes of objects of unified commercial gas supply system;
      12) develop the standard form contracts of wholesale trade of commercial and liquefied petroleum gas, as well as of maintenance support of gas-consuming systems and gas facilities of municipal and domestic customers;
      13) develop the procedure for submission of information on manufacturing monitoring, transporting (transportation), storage and sales of commercial, liquefied petroleum and liquefied natural gas;
      14) develop the procedure for wholesale trade and use of commercial and liquefied petroleum gas;
      15) develop technical regulations in the sphere of gas and gas supply;
      16) develop and approve the standard technical documents in the sphere of gas and gas supply beyond the boundaries (lines) of inhabited localities;
      17) develop and approve the forms of mandatory departmental reporting forms, prompt sheets, risk assessment criteria, semi-annual inspection plans in accordance with the Law of the Republic of Kazakhstan On State Control and Supervision in the Republic of Kazakhstan;
      18) develop the procedure for planning on the liquefied petroleum gas delivery on a local market of the Republic of Kazakhstan;
      19) approve the plan on the liquefied petroleum gas delivery on a local market of the Republic of Kazakhstan on a monthly basis;
      20) develop the rules of accreditation of gas-network organisations;
      21) carry out the accreditation of gas-network organisations;
      22) carry out other powers, provided by the Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      Footnote. Article 6 as amended by the Law of the Republic of Kazakhstan dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 7. Competence of other authorised state bodies in the sphere of gas and gas supply

      1. An authorised body in the field of municipal economy shall:
      1) form and carry out a state policy and carry out a cross-sector coordination in the sphere of gas and gas supply within the boundaries (lines) of inhabited localities;
      2) participate in implementation of general gasification scheme of the Republic of Kazakhstan;
      3) develop and approve the standard technical documents in the sphere of gas and gas supply within the boundaries (lines) of inhabited localities;
      4) develop the procedure for settlement and confirmation of consumption rate of commercial and liquefied petroleum gas;
      5) carry out other powers, provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      2. An authorised body in the field of industrial safety shall:
      1) control over compliance with requirements of safety operation of domestic bottles and objects of gas supply systems, with the exception of gas-consuming systems and gas facilities of domestic and municipal customers;
      2) develop safety requirements of objects of gas supply systems;
      3) carry out other powers, provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      3. An authorised body, carrying out management in the spheres of natural monopolies and on regulated markets shall:
      1) approve the consumption rates of commercial and liquefied petroleum gas;
      2) carry out other powers, provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      4. An authorised body, carrying out management and cross-sector coordination in the field of strategic and economic planning, formulation and formation of budget policy shall:
      1) coordinate proposals about the level of limit prices of wholesale trade of commercial and liquefied petroleum gas on a local market;
      2) carry out other powers, provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      5. Local executive bodies of region, cities of republican significance and capital shall:
      1) control over compliance with requirements of safety operation of gas-consuming systems and gas facilities of domestic and municipal customers;
      2) participate in implementation of general gasification scheme of the Republic of Kazakhstan;
      3) submit the consumption forecast of liquefied petroleum gas to the authorised body in the territory of region, city of republican significance, capital;
      4) submit information on sales and consumption of liquefied petroleum gas to authorised body in the territory of region, city of republican significance, capital;
      5) reserve the land plots, on which the construction of objects of gas supply systems are provided by the general gasification scheme of the Republic of Kazakhstan in the manner, prescribed by the legislation of the Republic of Kazakhstan;
      6) provide the land plots in the manner, prescribed by the legislation of the Republic of Kazakhstan for construction of objects of gas supply systems;
      7) carry out other powers, assigned on the local executive bodies by the legislation of the Republic of Kazakhstan in behalf of the local state administration.

Chapter 3. FUNCTIONING AND DEVELOPMENT OF GAS SUPPLY SYSTEMS

      Article 8. Unified commercial gas supply system

      1. Unified commercial gas supply system shall be established in the Republic of Kazakhstan for the purpose of uninterrupted securing of internal necessities in commercial gas, safety operation of objects of gas supply systems, organisations of continuous supervisory control of transporting, storage of commercial gas and establishment of its single accounting system in the Republic of Kazakhstan.
      2. Unified commercial gas supply system shall include connecting, main gas pipelines, storage structures of commercial gas, gas-distribution and gas-consuming systems, gas filling compressor stations and other technological facilities, designed for production, transporting, storage, sales and consumption of commercial gas.
      Unified commercial gas supply system shall not include flow gas pipelines, gas-consuming systems of domestic and municipal customers, technological facilities designed for production and re-gasification of liquefied natural gas, as well as for transporting, storage, sales and consumption of liquefied petroleum gas.
      3. Objects of unified commercial gas supply system may be in the state or private property.
      4. Subjects of unified commercial gas supply system shall be:
      1) a national operator;
      2) producers of commercial gas;
      3) subsoil users that are the owners of commercial gas, manufactured during processing of the raw gas produced by them;
      4) owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan;
      5) owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan from the raw gas, produced in the Republic of Kazakhstan, on the basis of international treaties of the Republic of Kazakhstan;
      6) gas transportation and gas-distribution organisations;
      7) owners of gas filling compressor stations;
      8) business customers of commercial gas.
      5. An authorised body shall keep record and publish on the website a list of producers of commercial gas, subsoil users that are the owners of commercial gas manufactured during processing of the raw gas produced by them, owners of commercial gas manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan, owners of commercial gas manufactured beyond the territory of the Republic of Kazakhstan from the raw gas produced in the Republic of Kazakhstan on the basis of international treaties of the Republic of Kazakhstan, gas transportation and gas-distribution organisations.
      6. For the purpose of effective operation of unified commercial gas supply system, producers of commercial gas, gas transportation and gas-distribution organisations shall comply with established operating conditions regimes of objects of unified commercial gas supply system.

      Article 9. A national operator

      1. A national operator shall carry out the following functions:
      1) participate in implementation of a state policy in the sphere of gas and gas supply;
      2) participate in development and implementation of general gasification scheme of the Republic of Kazakhstan;
      3) carry out preferential right of the state on acquisition of raw and commercial gas in accordance with this Law;
      4) carry out priority right of the state on acquisition of objects of unified commercial gas supply system, shares in the right of common property on objects of unified commercial gas supply system and block of stocks (participation shares) of legal entities that are owners of objects of unified commercial gas supply system in accordance with this Law;
      5) secure uninterrupted transporting and storage of commercial gas, as well as by conclusion of agreements with gas transportation and gas-distribution organisations;
      6) carry out the wholesale trade of commercial gas, as well as retail trade of commercial gas to customers, joined to the main gas pipelines and (or) gas-distribution systems;
      7) secure the centralized operational dispatch management by operating regimes of objects of unified commercial gas supply system;
      8) provide information to authorised body on transporting, storage and sales of commercial gas in the territory of the Republic of Kazakhstan, on acquisition of raw and commercial gas within the state preferential right, as well as the forecast of internal necessities in commercial gas of the Republic of Kazakhstan for a forthcoming calendar year;
      9) secure cooperation with gas transmission systems of neighbouring states on management and securing of the constancy of transporting regime of commercial gas;
      10) secure establishment and functioning of automated commercial gas fiscal metering system, that is in the unified commercial gas supply system.
      2. A national operator shall:
      1) provide customers, jointed to objects of unified commercial gas supply system with uninterrupted commercial gas supply, on conditions, established by this Law;
      2) secure construction, operation, modernization and (or) reconstruction of objects of unified commercial gas supply system in accordance with the general gasification scheme of the Republic of Kazakhstan;
      3) secure use of energy efficiency and clean technologies and equipment on objects of unified commercial gas supply system, that are in possession of national operator.
      3. Objects of unified commercial gas supply system, that are at the property of national operator or gas transportation and (or) gas-distribution organisations, where fifty and more percent of voting shares (partnership shares) belong to national operator, may be alienated as may be agreed with an authorised body.

      Article 10. Liquefied petroleum gas supply systems

      1. Liquefied petroleum gas supply systems shall be presented as the set of gas-filling stations, gas filling items, grouped tank installations, gas-consuming systems, filling stations and other production facilities, intended for transportation, storage, sales and consumption of liquefied petroleum gas.
      2. Objects of liquefied petroleum gas supply systems may be in the state or private property.
      3. Subjects of liquefied petroleum gas supply systems shall be:
      1) producers of liquefied petroleum gas;
      2) owners of liquefied petroleum gas, manufactured during processing of raw hydrocarbons, belonged to them as property and on other reasonable grounds;
      3) owners of liquefied petroleum gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan;
      4) gas-network organisations;
      5) owners of gas-filling items and filling stations;
      6) business customers of liquefied petroleum gas.
      4. An authorised body shall keep record and publish on the website a list of producers of liquefied petroleum gas, owners of liquefied petroleum gas manufactured during processing of raw hydrocarbons belonged to them as property and on other reasonable grounds, owners of liquefied petroleum gas manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan, gas-network organisations and business customers of liquefied petroleum gas.

      Article 11. A general gasification scheme of the Republic of Kazakhstan

      1. A gasification of the territory of the Republic of Kazakhstan shall be carried out in accordance with the general gasification scheme of the Republic of Kazakhstan.
      2. A general gasification scheme of the Republic of Kazakhstan shall be developed in recognition with priority of meeting the internal necessities of the Republic of Kazakhstan in commercial and liquefied petroleum gas on the basis of budgeted balance sheet of production, sales and consumption of commercial and liquefied petroleum gas.
      3. A general gasification scheme of the Republic of Kazakhstan shall include the allocation scheme of objects of gas supply systems, list and specifications of objects of gas supply systems planned for construction, modernization and (or) reconstruction, required financial resources and their sources, prospective resources of commercial and liquefied petroleum gas, as well as the gas shipment scheme on existent and planning for construction objects of gas supply systems.
      4. A general gasification scheme of the Republic of Kazakhstan shall be developed in recognition with priority of using domestic and municipal customers of commercial gas, including the gas received during re-gasification of liquefied natural gas.
      5. The financing of implementation of general gasification scheme of the Republic of Kazakhstan shall be carried out at the expense of national operator’s income, budget sources and other sources that are not prohibited by the legislation of the Republic of Kazakhstan.
      6. Reservation of land plots for implementation of the general gasification scheme shall be carried out in the manner, prescribed by the Land Code of the Republic of Kazakhstan.

      Article 12. Designing, construction, modernisation and (or) reconstruction of objects of gas supply systems

      1. Designs of construction, modernization and (or) reconstruction of main gas pipelines shall coordinate with authorised bodies and other state bodies in accordance with the legislation of the Republic of Kazakhstan on architectural, worn planning and building activity.
      2. Designs of construction, modernization and (or) reconstruction of gas-distribution systems and objects of the liquefied gas supply systems shall coordinate with authorised body in the field of municipal economy.
      3. Decision on construction of export and (or) transit gas pipelines shall be adopted by the Government of the Republic of Kazakhstan.
      4. Technical conditions on connection to the main pipeline, gas-distribution system or grouped tank installation shall be issued to gas transportation or gas-distribution or gas-network organisation, operating this object. The issued technical conditions shall be the ground for designing of newly constructed, modernized and (or) reconstructed objects of gas supply systems.
      5. Expenses, linked with connection of objects of gas supply systems to main pipeline, gas-distribution system or grouped tank installation shall be incurred at the expense of owners of connecting objects of gas supply systems.
      6. Reconnected and reconstructed gas facilities of consumers shall be exercised in accordance with technical regulations and standard technical documents, as well as shall be guaranteed by design documentation.

      Article 13. Regulation of land use during construction and operation of objects of gas supply systems

      1. The lands granted for construction and operation of objects of gas supply systems shall conform to the town planning and ecological requirements, established by the legislation of the Republic of Kazakhstan.
      2. An owner or land user shall provide the right of restricted intended use of a land plot, on which he (she) owns the right of property or land use to interested individuals and legal entities, in accordance with the legislation of the Republic of Kazakhstan, for access to objects of gas supply systems.
      3. The land plots shall be provided to the organisations operating the objects of gas supply systems for a temporary use in accordance with the Land Code of the Republic of Kazakhstan for performance of works on a capital repair, provision of services, modernization and (or) reconstruction of these objects.

Chapter 4. LEGAL BASIS OF GAS SUPPLY

      Article 14. Priority right of the state in the sphere of gas and gas supply

      1. The Republic of Kazakhstan shall have a priority right over other persons to acquire an alienated objects of unified commercial gas supply system, shares in the right of common property on objects of unified commercial gas supply system and block of shares (partnership shares) of legal entities that are owners of objects of unified commercial gas supply system (hereinafter –priority right of the state) in order to ensure the energy security and meet the internal necessities in commercial gas.
      2. The realization of priority right of the state in respect of the objects, referred to strategic objects in accordance with the civil legislation of the Republic of Kazakhstan, shall be carried out in accordance with the Law of the Republic of Kazakhstan On state-owned property.
      3. The realization of priority right of the state in respect of the objects, not referred to strategic objects in accordance with the civil legislation of the Republic of Kazakhstan, shall be carried out through a national operator in the manner prescribed by paragraphs 4-6 of this Article.
      4. A person, intended to alienate an object of unified commercial gas supply system, shares in the right of common property on object of unified commercial gas supply system and (or) block of shares (participation shares) of legal entity that is an owner of object of unified commercial gas supply system shall direct the commercial proposal with indication of price and other conditions of this allocation to a national operator.
      5. A national operator shall adopt decision on realization of priority right of the state or on its waiver and notify a person, directed commercial proposal on adopted decision in a written form within one month from the date of receipt of commercial proposal.
      6. In case if a national operator waived the realization of priority right of the state in a written form or has not directed the written notification on intension of its realization within one month, a person, mentioned in paragraph 4 of this Article shall have the right to carry out the allocation of object of unified commercial gas supply system, shares in the right of common property on object of unified commercial gas supply system and (or) block of shares (participation shares) of legal entity that is an owner of object of unified commercial gas supply system to other persons. The conditions of allocation shall be as much as favourable for a person, mentioned in paragraph 4 of this Article, than conditions, suggested to national operator by him (her).
      7. Provisions of this Article shall not extend to the cases of:
      1) allocation of gas filling compressor stations and gas-consuming systems of business customers;
      2) allocation of stocks traded on a regulated market of securities;
      3) transfer of objects of unified commercial gas supply system, shares in the right of common property on objects of unified commercial gas supply system and (or) stocks of shares (participation shares) of legal entities that are owners of objects of unified commercial gas supply system:
      to subsidiary, in which not less than ninety nine percent of participation share (block of stocks) directly or indirectly belongs to owner of unified commercial gas supply system;
      between legal entities, in each of which not less than ninety nine percent of participation shares (blocks of stocks) directly and indirectly belong to the same person;
      4) transfer of stocks (participation shares) in a legal entity that is an owner of object of unified commercial gas supply system, if in the result of this transfer, a person acquires the right to directly or indirectly (through the third parties) disposition of less than 0.1 percent of participation share (block of stocks) in the charter capital of legal entity that is an owner of object of unified commercial gas supply system.

      Article 15. Preferential right of the state in the sphere of gas and gas supply

      1. The Republic of Kazakhstan shall have a preferential right over other persons to acquire an alienated raw gas belonged to subsoil users in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use and subsoil use contracts, as well as a commercial gas manufactured by subsoil users during processing of the raw gas produced by them and belonged to them in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use and subsoil contracts (hereinafter – preferential right of the state) in order to ensure the energy security and meet the internal necessities in commercial gas.
      2. Realization of preferential right of the state shall be carried out through a national operator.
      3. A price for raw materials, acquired by a national operator within the preferential right of the state shall be determined by subsoil user in the manner prescribed by the Government of the Republic of Kazakhstan, and shall include:
      1) expenses for the raw gas production, determined on the basis of manufacturing costs of volume unit of the raw gas, calculated in accordance with international standards of financial accountability and requirements of the legislation of the Republic of Kazakhstan on accounting and financial accountability;
      2) expenses for transporting of the raw gas to the place of its sales to national operator;
      3) level of profitability in amount of no more than ten percent.
      4. A price for commercial gas, acquired by a national operator within the preferential right of the state shall be determined by subsoil user in the manner, prescribed by the Government of the Republic of Kazakhstan and includes:
      1) expenses for raw gas production, determined on the basis of manufacturing costs of volume unit of the raw gas, calculated in accordance with international standards of financial accountability and requirements of the legislation of the Republic of Kazakhstan on accounting and financial accountability;
      2) expenses for production of commercial gas from the raw gas;
      3) expenses for transporting of commercial gas to the place of its sales to national operator;
      4) level of profitability in amount of no more than ten percent.
      5. A price for raw or commercial gas, acquired within the preferential right of the state shall be subject to expert examination and confirmation by an authorised body.
      6. Subsoil users, intended to alienate the raw and (or) commercial gas in the forthcoming calendar year shall direct to an authorised body for expert examination the duly documented price calculations of raw and (or) commercial gas, to be acquired by a national operator within the preferential right of the state.
      7. According to results of expert examination of the calculated price of raw and (or) commercial gas, to be acquired by a national operator within the preferential right of the state, an authorised body shall direct notification on confirmation of calculated price of the raw and (or) commercial gas, to be acquired by a national operator within the preferential right of the state, or motivated conclusion on necessity of its changing within thirty calendar days from the date of receipt of materials.
      8. Subsoil users shall not exceed the price confirmed by an authorised body of raw and (or) commercial gas, to be acquired by a national operator within the preferential right of the state.
      9. Subsoil users, intended to alienate the raw and (or) commercial gas in the forthcoming calendar year shall not later than five months before beginning of planned period direct the commercial proposal to national operator, with indication of:
      1) volumes of alienated raw and (or) commercial gas;
      2) prices of alienated raw and (or) commercial gas;
      3) a delivery point of the raw and (or) commercial gas.
      10. A national operator shall adopt decision on realization of preferential right of the state or its waiver within one month from the date of receipt of commercial proposal and shall notify a person, directed the commercial proposal about adopted decision in a written form within the same period.
      11. In case if a national operator waived the realization of preferential right of the state in a written form or has not directed the written notification on intension of its realization within one month, an owner of commercial gas, subsoil user shall have the right to carry out alienation of the raw and (or) commercial gas to other persons in accordance with requirements of this Law.
      12. Contracts between subsoil users and national operator, concluded during realizing the preferential right of the state by a national operator, may be concluded for the period more than one calendar year.
      13. Upon the parties' agreement the mentioned contracts may be amended, providing increase of the volume of alienated raw and (or) commercial gas and (or) extension of contract duration without complying with the procedures, provided by paragraphs 5-7, 9 and 10 of this Article.
      14. Provisions of this Article shall not extent to the cases of alienation of:
      1) the raw gas, produced on gas and (or) gas-condensate fields;
      2) the commercial gas, manufactured from the raw gas, produced on gas and (or) gas-condensate fields;
      3) the liquefied natural gas and commercial gas, received during its re-gasification;
      4) the raw gas, sold in accordance with international agreements of the Republic of Kazakhstan;
      5) the commercial gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan;
      6) the commercial gas, manufactured beyond the territory of the Republic of Kazakhstan from the raw gas, produced in the Republic of Kazakhstan, on the basis of international agreements of the Republic of Kazakhstan;
      7) the raw gas, manufactured on the basis of agreement, concluded within a partnership in the sphere of gas and gas supply;
      8) the raw and (or) commercial gas produced (manufactured) by subsoil user under agreement (contract) on production sharing, that has the tax stability in accordance with Article 308-1 of the Code of the Republic of Kazakhstan On Taxes and Other Obligatory Payments into the Budget (Tax code), the provisions of which shall provide the preferential right of the state to acquire the alienated raw and (or) commercial gas.
      Footnote. Article 15 as amended by the Law of the Republic of Kazakhstan dated 22.06.2012 No. 21-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 16. Regulation of relations, linked with associated gas

      1. The state shall own the associated gas:
      1) produced by subsoil user and belonged to the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use;
      2) transferred by subsoil users into state property, according to previously concluded subsoil use contracts, in which the property of subsoil user on produced associated gas is provided.
      2. The associated gas, mentioned in paragraph 1 of this Article shall be transferred according to a decision of an authorised body in the volumes, determined by it, in the manner and on conditions, established by the Government of the Republic of Kazakhstan into property of engaged investor on the basis of contract, concluded within a partnership in the sphere of gas and gas supply.
      3. Subsoil users, manufactured commercial and (or) liquefied petroleum gas from the associated gas, belonged to Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan on subsoil and subsoil use by decision of an authorised body shall transfer the commercial gas to a national operator or commercial and (or) liquefied petroleum gas to engaged investor for the following use within partnership in the sphere of gas and gas supply at the price, coordinated by the parties.
      4. A contract concluded by investor with an authorised body within the partnership in the sphere of gas and gas supply, shall also contain the following conditions:
      1) processing of the associated gas into commercial, liquefied petroleum and (or) liquefied natural gas;
      2) delivery of the certain volumes of manufactured commercial, liquefied petroleum and (or) liquefied natural gas in order to meet a high priority internal necessities of the Republic of Kazakhstan subject to the general gasification scheme of the Republic of Kazakhstan.

      Article 17. General conditions of sales of commercial, liquefied petroleum and liquefied natural gas

      1. For the purpose of environmental protection and protection of public health of the Republic of Kazakhstan, customers may be delivered only by commercial and (or) liquefied petroleum gas, with the exception of sales of the raw gas to business customers for using as raw materials.
      2. Sales of commercial gas subject to requirements of this Law shall be allowed exceptionally to:
      1) national operator;
      2) producers of commercial gas;
      3) subsoil users, that are the owners of commercial gas, manufactured during processing of the raw gas produced by them;
      4) owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan;
      5) owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan from the raw gas, produced in the Republic of Kazakhstan, on the basis of international agreements of the Republic of Kazakhstan;
      6) gas-distribution organisations;
      7) owners of gas filling compressor stations.
      3. Sales of liquefied natural gas shall be carried out by individuals and legal entities subject to priority of meeting the internal necessities of the Republic of Kazakhstan within the general gasification scheme of the Republic of Kazakhstan.
      4. Sales of liquefied petroleum gas subject to requirements of this Law shall be allowed exceptionally to:
      1) producers of the liquefied petroleum gas;
      2) owners of the liquefied petroleum gas, manufactured during processing of the raw hydrocarbons belonged to them as property and on other reasonable grounds;
      3) owners of the liquefied petroleum gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan;
      4) gas-network organisations;
      5) owners of gas-filling items and fuel filling stations.
      5. Sales of commercial, liquefied petroleum and (or) liquefied natural gas shall be carried out with mandatory reallocation through the control metering instruments, with the exception of cases, established by this Law.
      6. Contracts of wholesale trade of commercial and liquefied petroleum gas shall be concluded in accordance with the standard form contracts.
      Provision of this paragraph shall not extend to the cases of retail trade of:
      1) commercial and liquefied petroleum gas to municipal and business customers;
      2) commercial gas by owners of gas filling compressor stations;
      3) liquefied petroleum gas by owners of filling stations;
      4) liquefied petroleum gas in domestic bottles.
      7. Domestic and municipal customers shall have the preferential right of use of commercial or liquefied petroleum gas.
      8. Gas transportation or gas-distribution, or gas-network organisation shall secure customers jointed to the gas-distribution system or grouped tank installation of this organisation by uninterrupted commercial or liquefied petroleum gas supply, on conditions established by this Law.
      9. In the following cases gas transportation or gas-distribution, or gas-network organisation shall have the right to suspend supply of commercial and liquefied petroleum gas to customer in its discretion until violations are fixed:
      1) violation by a customer of safety rules of the object of gas supply systems;
      2) technical failure of the objects of gas supply systems;
      3) unauthorised attachment to gas facilities by a customer;
      4) non-admission of representatives of gas transportation or gas-distribution, or gas-network organisation to the gas pipelines, gas facilities and metering instruments;
      5) existence of debtor indebtedness for supplied commercial and liquefied petroleum gas in accordance with contract on retail trade of commercial or liquefied petroleum gas.

      Article 18. Accreditation of gas-network organisations

      1. Gas-network organisations shall be subject to accreditation in an authorised body in accordance with the rules of accreditation of gas-network organisations.
      2. An accreditation shall be carried out at the expense of the funds of accrediting subject and shall be confirmed by accreditation certificate.
      3. An accreditation certificate shall be valid in the whole territory of the Republic of Kazakhstan, unlimited, unalienable and may not be granted to other individual or legal entity.
      4. The loss of effect of an accreditation certificate shall come into force in the following cases:
      1) voluntary return of an accreditation certificate;
      2) termination of possession of a gas-filling station and (or) grouped tank installations as property or on other legal grounds;
      3) liquidation of legal entity or its reorganisation in the form of split-up;
      4) deprivation of an accreditation certificate.
      5. Suspension of validity, deprivation of an accreditation certificate shall be carried out in the manner, prescribed by the Laws of the Republic of Kazakhstan.

      Article 19. Operation of gas-consuming systems and gas facilities of customers

      1. Owners of gas-consuming systems and gas facilities shall ensure their proper technical condition and safety.
      2. Business customers shall have the qualified staff for technical service of gas-consuming systems belonged to them, as well as a person responsible for the safe operation of gas-consuming systems, or shall conclude a contract on technical service of gas-consuming systems belonged to them with a specialized organisation that carry out the technical service of gas-consuming systems and that certified in accordance with the legislation of the Republic of Kazakhstan in the field of industrial safety on the right of performance of the works in the field of industrial safety.
      3. Municipal and domestic customers shall conclude a contract on technical service of gas-consuming systems belonged to them with a gas-distribution or gas-network organisation that carry out supply of commercial or liquefied petroleum gas, or with an independent specialized organisation that carries out the technical service of gas-consuming systems and certified in accordance with the legislation of the Republic of Kazakhstan in the field of industrial safety on the right of performance of works in the field of industrial safety.
      4. Municipal and domestic customers, using the liquefied petroleum gas in domestic bottles shall conclude a contract on technical service of gas facilities, belonged to them with a gas-network organisation or owner of gas filling item that carry out retail trade of liquefied petroleum gas in domestic bottles.
      5. Operation of gas-consuming systems and gas facilities of municipal and domestic customers without conclusion of a contract on their technical service shall be prohibited.
      6. Organisation that carries out the technical service of gas-consuming systems, gas facilities of municipal and domestic customers shall ensure their proper technical condition.

      Article 20. State regulation of prices of the wholesale trade of commercial and liquefied petroleum gas on a local market

      1. State regulation of prices of the wholesale trade of commercial and liquefied petroleum gas on a local market shall be carried out in the Republic of Kazakhstan.
      2. Limit prices of the wholesale trade of commercial gas on a local market shall be established for a half year, separately for every region, city of republican significance, capital in recognition of economic and social gas supply conditions of regions of the Republic of Kazakhstan.
      3. An authorised body shall in the manner, prescribed by the Government of the Republic of Kazakhstan develop and direct proposals on the level of limit prices of the wholesale trade of commercial gas on a local market for the forthcoming half year, subject to an approval by an authorised body carrying out management and cross-sector coordination in the field of strategic and economic planning, formulation and formation of budget policy, not later than one month before beginning of the planned period.
      4. The Government of the Republic of Kazakhstan shall not later than fifteen calendar days before beginning of the planned period approve the limit prices of the wholesale trade of commercial gas on a local market for the forthcoming half year on the basis of proposals, mentioned in paragraph 3 of this Article,.
      5. Limit price of the wholesale trade of the liquefied petroleum gas on a local market shall be established quarterly and remain in force in the whole territory of the Republic of Kazakhstan.
      6. An authorised body shall in the manner, prescribed by the Government of the Republic of Kazakhstan develop and direct proposals on the level of limit prices of the wholesale trade of the liquefied petroleum gas on a local market for the forthcoming quarter, subject to an approval by an authorised body carrying out management and cross-sector coordination in the field of strategic and economic planning, formulation and formation of budget policy, not later than one month before beginning of the planned period.
      7. The Government of the Republic of Kazakhstan shall not later than fifteen calendar days before beginning of the planned period approve the limit prices of the wholesale trade of the liquefied petroleum gas on a local market for the forthcoming quarter, on the basis of proposals, mentioned in paragraph 6 of this Article.
      8. Persons who carry out the wholesale trade of commercial or liquefied petroleum gas in the territory of regions, cities of republican significance and capital shall be obliged not to exceed established limit prices of the wholesale trade of commercial or liquefied petroleum gas.
      9. Limit prices of the wholesale trade of commercial gas on a local market, established by this Article shall not extend to relations on the sales of commercial gas:
      1) to national operator within the frame of preferential right of the state;
      2) to national operator by the owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan from the raw gas, produced in the Republic of Kazakhstan on the basis of international agreements of the Republic of Kazakhstan;
      3) received in a result of re-gasification of the liquefied natural gas;
      4) produced (manufactured) by a subsoil user within the frame of agreement (contract) on production sharing that enjoys tax stability in accordance with Article 308-1 of the Code of the Republic of Kazakhstan On Taxes and Other Obligatory Payments into the Budget (Tax Code), provisions of which provide the preferential right of the state to acquire alienated raw and (or) commercial gas.
      Footnote. Article 20 as amended by the Law of the Republic of Kazakhstan dated 22.06.2012 No. 21-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 21. Monitoring of production, transporting (transportation), storage and sales of commercial, liquefied petroleum and liquefied natural gas

      1. An authorised body shall carry out the monitoring of production, transporting (transportation), storage and sales of commercial, liquefied petroleum and liquefied natural gas, which includes:
      1) monitoring of production volumes of commercial, liquefied petroleum and liquefied natural gas in the Republic of Kazakhstan;
      2) monitoring of volumes of transporting and storage of commercial gas;
      3) monitoring of sales volumes, including export and import of commercial, liquefied petroleum and liquefied natural gas in the Republic of Kazakhstan;
      4) monitoring of the wholesale prices for commercial, liquefied petroleum and liquefied natural gas, sold in the Republic of Kazakhstan;
      5) monitoring of the retail prices for commercial and liquefied petroleum gas, sold in the Republic of Kazakhstan;
      6) monitoring of the internal necessities of the Republic of Kazakhstan in commercial and liquefied petroleum gas.
      2. Persons who carry out wholesale and (or) retail trade of commercial gas shall monthly submit to an authorised body the information about the sales of commercial gas, including gas, imported for consumption in the territory of the Republic of Kazakhstan not later than the twentieth day of the month, next to the accounting month.
      3. Gas transportation, gas-distribution organisations shall monthly submit to a national operator the information about the volumes of transporting and storage of commercial gas, not later than the fifth day of the month, next to the accounting month.
      4. A national operator shall submit the following information to an authorised body:
      1) information about commercial gas transporting volumes through the main gas pipelines and its storage in the storage structures of commercial gas, on a monthly basis, not later than the twentieth day of the month, next to the accounting month;
      2) information about acquired raw and commercial gas volumes within the frame of preferential right of the state, annually, not later than the first of February of the year, next to the accounting month;
      3) forecast of internal necessities of the Republic of Kazakhstan in commercial gas for the forthcoming calendar year, annually, not later than three months before beginning of the planned period.
      5. Producers shall submit the following information to an authorised body:
      1) information on manufacturing of commercial, liquefied petroleum and liquefied natural gas, on a monthly basis, not later than the fifth day of the month, next to the accounting month;
      2) estimated production volume of commercial, liquefied petroleum and liquefied natural gas for the forthcoming five years, annually, not later than three months before beginning of the planned period.
      6. Persons who carry out the wholesale and (or) retail trade of the liquefied petroleum gas shall submit information on the sales of liquefied petroleum gas, including the gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan to local executive bodies of regions, cities of republican significance and capital, in the territory of which the sales are carried out, on a monthly basis, not later than the fifth day of the month, next to the accounting month.
      7. Local executive bodies of region, city of republican significance, capital shall submit the following information to an authorised body:
      1) information on sales and consumption of the liquefied petroleum gas in the territory of region, city of republican significance, capital, on a monthly basis, not later than the fifteenth day of the month, next to the accounting month;
      2) consumption forecast of the liquefied petroleum gas for the forthcoming calendar year, in the territory of region, city of republican significance, capital, annually, not later than three months before beginning of the planned period.
      8. Persons who carry out the wholesale trade of the liquefied natural gas shall submit information about sales of the liquefied petroleum gas, including the gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan to an authorised body, on a monthly basis, not later than the fifth day of the month, next to the accounting month.
      9. Information, provided in paragraphs 2-8 of this Article shall be submitted in accordance with the manner, prescribed by the Government of the Republic of Kazakhstan.
      10. An authorised body in the field of customs affairs shall submit information about import and export of commercial, liquefied petroleum and liquefied natural gas in the Republic of Kazakhstan to an authorised body, on a monthly basis, not later than the fifteenth day of the month, next to the accounting month.
      11. An authorised body shall compose the budgeted balance sheet of manufacturing, sales and consumption of commercial and liquefied petroleum gas in the territory of the Republic of Kazakhstan for the forthcoming calendar year on the basis of monitoring data.

Chapter 5. STATE REGULATION OF TRANSPORTING, STORAGE, SALES AND ACCOUNTING OF COMMERCIAL GAS

      Article 22. Transporting and storage of commercial gas

      1. Gas transportation organisations shall render the services of commercial gas transporting through the connecting, main gas pipelines, as well as the services on the storage of commercial gas.
      2. Operation of the same connecting, main gas pipelines and storages of commercial gas by two and more gas transportation organisations shall be prohibited.
      3. Gas transportation organisations shall have the right to render the transporting services of commercial gas through the main gas pipelines beyond the territory of the Republic of Kazakhstan, exceptionally to:
      1) a national operator;
      2) producers of commercial gas;
      3) subsoil users, that are the owners of commercial gas, manufactured during processing of the raw gas, produced by them;
      4) owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan, intended to carry out its transporting through the territory of the Republic of Kazakhstan.
      4. Gas transportation, gas-distribution organisations shall:
      1) grant access to the main gas pipeline powers, storage of commercial gas or gas-distribution system to the owners of commercial gas on equal conditions, subject to restrictions, provided by paragraph 3 of this Article, in accordance with the legislation of the Republic of Kazakhstan on natural monopolies and regulated markets;
      2) provide information about existence of available main gas pipeline powers, commercial gas storage, gas-distribution system, as well as their use program upon request of an authorised body;
      3) inform owners of commercial gas and (or) customers about planning repair and maintenance works, that have an effect on execution of obligations on the transporting, storage and (or) retail trade of commercial gas.
      5. Gas transportation organisation shall deny transporting and (or) storage of commercial gas to owner of commercial gas, in cases of:
      1) non-compliance of commercial gas with requirements of technical regulations and national standards;
      2) failure to give the written refusal of a national operator by subsoil user from preferential right of the state to acquire the commercial gas volumes, planned for transporting, or the documents, confirming receipt by a national operator of commercial proposal on alienation of commercial gas volumes the month ahead of appeal by subsoil user to the gas transportation organisation.
      6. Gas transportation organisations shall bear a liability for unjustified refusal of transporting and storage of commercial gas in the manner, prescribed by the Laws of the Republic of Kazakhstan and agreement on provision of services on transporting and storage of commercial gas.
      Footnote. Article 22 as amended by the Law of the Republic of Kazakhstan dated 10.07.2012 No. 31-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 23.Wholesale trade of commercial gas

      1. Wholesale trade of commercial gas may be carried out by:
      1) a national operator;
      2) producers of commercial gas;
      3) subsoil users, that are the owners of commercial gas, produced during processing of the raw gas produced by them;
      4) owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan;
      5) owners of commercial gas, manufactured beyond the territory of the Republic of Kazakhstan from the raw gas, produced in the Republic of Kazakhstan, on the basis of international agreements of the Republic of Kazakhstan, in the cases of sale of commercial gas to a national operator and (or) beyond the territory of the Republic of Kazakhstan;
      6) gas-distribution organisations in the cases of sales of commercial gas to a national operator and (or) owners of the gas filling compressor stations.
      Other persons shall have no right to carry out the wholesale trade of commercial gas.
      2. A person, acquiring commercial gas from persons, mentioned in paragraph 1 of this Article shall be prohibited to carry out its wholesale trade, with the exception of cases of its wholesale trade to national operator and (or) owners of gas filling compressor stations by gas-distribution organisations.
      Provision of this paragraph shall not extend to a national operator.

      Article 24. Retail trade of commercial gas

      1. Retail trade of commercial gas shall be carried out by:
      1) gas-distribution organisations;
      2) owners of the gas filling compressor stations;
      3) a national operator;
      4) producers of commercial gas, subsoil users that are the owners of commercial gas manufactured during processing of the raw gas produced by them, owners of commercial gas manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan, in the case of retail trade of commercial gas to business customers, the gas-consuming systems of which are directly connected to the main or connecting gas pipelines.
      Other persons shall have no rights to carry out retail trade of commercial gas.
      2. Connection of gas facilities of individuals and legal entities to the gas-distribution system, the modernization and (or) reconstruction of the objects of gas supply systems, required for cover of additional loads of connected customers in the case of absence of free powers, as well as change of technical diagram of this connection shall be carried out by a gas-distribution organisation at the expense of these customers.
      3. Gas feeding to the gas-consuming system of customers shall be carried out by a gas transportation or gas-distribution organisation.

      Article 25. Accounting of commercial gas

      1. Transporting, storage and sales of commercial gas without accounting of its volume shall not be allowed.
      2. Accounting of commercial gas volume, transported through the main gas pipelines shall be carried out by a gas transportation organisation at the gas measuring stations on the gas metering instruments with a permanent data confirmation on commercial gas metering instruments, established on receiving (transfer) point of commercial gas. Gas transportation organisations shall ensure the data transfer on accounting of transportable commercial gas to a national operator.
      3. Accounting of commercial gas volume, transported through the gas-distribution systems shall be carried out by gas-distribution organisations on the metering instruments. Gas-distribution organisations shall ensure the data transfer on accounting of sold commercial gas to a national operator.
      4. Accounting of commercial gas volume, used by business and municipal customers shall be carried out:
      1) on the metering instruments, established on receiving (transfer) points of commercial gas;
      2) on the power of gas-consuming equipment – in the absence of metering instruments, their failure or non-compliance with gas facility conditions.
      5. Accounting of commercial gas volume, used by domestic customers shall be carried out:
      1) on individual metering instruments;
      2) on collective metering instruments in apartment buildings;
      3) on collective metering instruments in individual residential houses, established on the cabinet of regulatory or gas regulating units;
      4) on consumption rate, confirmed by an authorised body, carrying out management in the spheres of natural monopolies and on regulated markets, - in the absence of individual or collective metering instruments, their failure or non-compliance with the gas facility conditions.
      6. Metering instruments of commercial gas shall conform to requirements of technical regulations and national standards.
      Footnote. Article 25 as amended by the Law of the Republic of Kazakhstan dated 10.07.2012 No. 31-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 6. STATE REGULATION OF TRANSPORTATION, STORAGE, SALES AND ACCOUNTING OF THE LIQUEFIED PETROLEUM AND LIQUEFIED NATURAL GAS

      Article 26. Transportation of the liquefied petroleum and liquefied natural gas by railway, highway, marine and inland water transport

      1. Transportation of the liquefied petroleum and liquefied natural gas by railway, highway, marine and inland water transport shall be allowed via specially equipped and eligible transport for transportation in accordance with requirements, imposed by the legislation of the Republic of Kazakhstan to the transportation of dangerous goods.
      2. Transportation of the liquefied petroleum and liquefied natural gas by railway, highway, marine and inland water transport beyond the territory of the Republic of Kazakhstan, independently or with engaging of persons, rendering services on transportation of the liquefied petroleum and (or) liquefied natural gas, may be carried out by:
      1) producers of the liquefied petroleum and liquefied natural gas;
      2) owners of the liquefied petroleum and (or) liquefied natural gas, manufactured during the processing of raw hydrocarbons, belonged to them as property and on other legal grounds;
      3) owners of the liquefied petroleum and (or) liquefied natural gas manufactured beyond the territory of the Republic of Kazakhstan, intended to carry out its transportation through the territory of the Republic of Kazakhstan;
      4) gas-network organisations.
      3. Persons, rendering services on transportation of the liquefied petroleum and (or) liquefied natural gas beyond the territory of the Republic of Kazakhstan shall have the right to render this services only to persons, mentioned in paragraph 2 of this Article.
      4. Documents, linked with transportation of the liquefied petroleum and (or) liquefied natural gas by railway, highway, marine and inland water transport shall conform to requirements, established by the legislation of the Republic of Kazakhstan for transportation of dangerous goods for each type of transport.
      5. Construction and operation conditions of the storage and transport means of the liquefied petroleum or liquefied natural gas by railway, highway, marine and inland water transport shall conform to requirements of the technical regulations.
      Footnote. Article 26 as amended by the Law of the Republic of Kazakhstan dated 22.06.2012 No. 21-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 27. Wholesale trade of the liquefied petroleum gas

      1. Wholesale trade of the liquefied petroleum gas may be carried out by:
      1) producers of the liquefied petroleum gas;
      2) owners of the liquefied petroleum gas, manufactured during the processing of raw hydrocarbons, belonged to them as property or on other legal grounds;
      3) owners of the liquefied petroleum gas, manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan;
      4) gas-network organisations in the case of sales of the liquefied petroleum gas to the owners of gas-filling items and (or) filling stations, as well as beyond the territory of the Republic of Kazakhstan subject to provisions of the part 2 of paragraph 6 of this Article.
      Other persons shall have no right to carry out the wholesale trade of the liquefied petroleum gas.
      2. A person who acquired the liquefied petroleum gas from persons, mentioned in paragraph 1 of this Article, shall not be allowed to carry out its wholesale trade, with the exception of cases of wholesale trade by gas-network organisations to the owners of gas-filling items and (or) filling stations, as well as beyond the territory of the Republic of Kazakhstan subject to provisions of the part 2 of paragraph 6 of this Article.
      3. In order to satisfy necessities in the liquefied petroleum gas of a local market of the Republic of Kazakhstan, on a monthly basis, not later than the fifth day of the month, preceding the planned month, in the manner prescribed by the Government of the Republic of Kazakhstan an authorised body shall approve the plan of the liquefied petroleum gas delivery on a local market of the Republic of Kazakhstan, that shall determine:
      1) a list of producers, owners of the liquefied petroleum gas, manufactured during the processing of raw hydrocarbons, belonged to them as property or on other legal grounds;
      2) the volume of liquefied petroleum gas, that is subject to mandatory sales on a local market of the Republic of Kazakhstan;
      3) a list of gas-network organisations, to which the owners of the liquefied petroleum gas manufactured during the processing of raw hydrocarbons and belonged to them as property or on other legal grounds shall sale the liquefied petroleum gas.
      4. Delivery plan of the liquefied petroleum gas on a local market of the Republic of Kazakhstan shall be developed on the basis of applications, directed by gas-network organisations to authorised body not later than the fifteenth day of the month, preceding the planned month.
      5. The volume of liquefied petroleum gas, mandatory for sales on a local market of the Republic of Kazakhstan shall be determined by an authorised body particularly for each producer, owner of the liquefied petroleum gas manufactured during the processing of raw hydrocarbons belonged to it as property or on other legal grounds, proportionally to production volume of the liquefied petroleum gas, proceeding from the applications of gas-network organisations.
      6. Gas-network organisations shall have the right to acquire the liquefied petroleum gas, sold in accordance with delivery plan of the liquefied petroleum gas on a local market of the Republic of Kazakhstan.
      The volumes of liquefied petroleum gas, acquired in accordance with delivery plan of the liquefied petroleum gas on a local market of the Republic of Kazakhstan shall be sold by gas-network organisations exceptionally on a local market of the Republic of Kazakhstan.
      7. Producers, owners of the liquefied petroleum gas manufactured during the processing of raw hydrocarbons, belonged to them as property or on other legal grounds shall fulfil delivery plan of the liquefied petroleum gas on a local market of the Republic of Kazakhstan.
      8. Provisions of paragraphs 3, 5 and 7 of this Article shall not extend to:
      1) producers, the estimated capacity of the liquefied petroleum gas production of which do not exceed five thousand tons per year;
      2) owners of the liquefied petroleum gas, manufactured beyond the territory of the Republic of Kazakhstan from the raw gas, produced in the Republic of Kazakhstan, on the basis of international agreements of the Republic of Kazakhstan.
      Footnote. Article 27 as amended by the Law of the Republic of Kazakhstan dated 22.06.2012 No. 21-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 28.Retail trade of the liquefied petroleum gas

      1. Retail trade of the liquefied petroleum gas shall be carried out by:
      1) gas-network organisations;
      2) owners of the gas-filling items;
      3) owners of the filling stations;
      4) producers, owners of the liquefied petroleum gas manufactured during the processing of raw hydrocarbons, belonged to them as property or on other legal grounds, owners of the liquefied petroleum gas manufactured beyond the territory of the Republic of Kazakhstan and imported for consumption in the territory of the Republic of Kazakhstan, in case of retail trade of the liquefied petroleum gas to business customers.
      Other persons shall have no right to carry out retail trade of the liquefied petroleum gas.
      2. A gas-network organisation, operating grouped tank installations shall ensure their safety and proper technical condition.
      3. Connection of gas facilities of individuals and legal entities to the liquefied petroleum gas supply system, modernization and (or) reconstruction of the objects of liquefied petroleum gas supply system, as well as change of technical connection diagram shall be carried out by a gas-network organisation at the expense of these persons.
      4. Retail trade of the liquefied petroleum gas to customers through the grouped tank installations shall be carried out on the basis of retail trade agreement of the liquefied petroleum gas between a customer and gas-network organisation.
      5. Retail trade of the liquefied petroleum gas in domestic bottles shall be carried out by gas-network organisations and owners of the gas-filling items which shall ensure proper technical condition of domestic bottles.
      The filling with liquefied petroleum gas of domestic bottles shall be allowed on the gas-filling items and gas-filling stations.
      6. Gas-network organisations and owners of the gas-filling items shall:
      1) carry out the subscriber accounting of customers, acquiring the liquefied petroleum gas in domestic bottles;
      2) enquire the filled domestic bottles with respect to technical integrity;
      3) carry out a marking of domestic bottles by a trademark of a gas-network organisation or owner of gas-filling item;
      4) issue a warranty card of quality for each domestic bottle, sold to customers;
      5) secure emergency and scheduled maintenance of compressed gas installations.
      7. It shall be prohibited to:
      1) store and (or) use the liquefied petroleum gas in domestic bottles in apartment buildings with more than two floors;
      2) operate the same gas-filling stations and (or) grouped tank installations by two and more gas-network organisations at the same time;
      3) use the gas-filling items and filling stations for the sales of liquefied petroleum gas by two and more individuals and (or) legal entities at the same time.
      8. A gas-network organisation, operating domestic gas facilities, intended for liquefied petroleum gas supply to the gas-consuming systems of customers, shall secure its safety and proper technical condition.
      Provision of this paragraph shall not extend to the gas facilities inside dwelling places.

      Article 29. Accounting of the liquefied petroleum gas

      1. Accounting of the liquefied petroleum gas on the filling stations, gas-filling stations, gas-filling items and in the grouped tank installations shall be carried out in accordance with the procedure for retail trade and use of commercial and liquefied petroleum gas, approved by the Government of the Republic of Kazakhstan.
      2. Accounting of the liquefied petroleum gas, sold to customers shall be carried out on the metering instruments, with the exception of case, provided by subparagraph 2) of paragraph 3 of this Article.
      3. Accounting of the liquefied petroleum gas, sold to domestic customers through the grouped tank installations shall be carried out by volumetric method:
      1) on individual metering instruments;
      2) on consumption rates, approved by an authorised body, carrying out management in the spheres of natural monopolies and on regulated markets – in the absence of individual metering instruments, their failure or non-conformity to the gas facilities conditions.
      4. Provisions of paragraphs 2 and 3 of this Article shall not extend to the liquefied petroleum gas, sold to customers in domestic bottles.

Chapter 7. SAFETY PROVISION OF THE GAS SUPPLY SYSTEMS

      Article 30. Safety provision of the gas supply systems

      1. Safety provision of the gas supply systems shall be carried out in accordance with the legislation of the Republic of Kazakhstan in the field of industrial, fire security, emergencies of natural and man-induced character and environmental legislation of the Republic of Kazakhstan.
      2. Owners of the objects of gas supply systems shall secure their safety operation and proper condition, perform maintenance activities or conclude agreement on the technical services of the objects, belonged to them.
      3. Individuals and legal entities, carrying out maintenance activities of the objects of gas supply systems shall secure their quality and timely execution.
      4. Owners of the chimney and air flues, sealing engineering services of the buildings, premises shall secure their proper technical condition.
      5. Gas transportation, gas-distribution and gas-network organisations shall have emergency service as a part with around-the-clock work, including non-working days and holidays.
      6. Gas transportation, gas-distribution and gas-network organisations shall have the right to engage on the basis of contract the emergency service of other organisations for liquidation of accidental situations.
      7. Objects of gas supply systems shall be the objects of uninterrupted power supply. Organisations of power supply shall be prohibited to carry out performance measures on restriction of established limits of power consumption on the objects of gas supply systems without securing approval of organisations, operating the objects of gas supply systems.
      8. Operation of single right of way by two and more organisations shall be prohibited.

      Article 31. State control and supervision in the sphere of gas and gas supply

      1. State control and supervision in the sphere of gas and gas supply shall be carried out in the form of audit and other forms.
      2. Audit shall be carried out in accordance with the Law of the Republic of Kazakhstan On State Control and Supervision in the Republic of Kazakhstan. The other forms of state control and supervision shall be carried out in accordance with the Laws of the Republic of Kazakhstan.

      Article 32. Protective zone of objects of gas supply system

      1. Protective zones shall be established for the purpose of public safety provision, prevention of environmental harm, as well as arrangement of conditions for the safe operation of the objects of gas supply systems in the territories, adjacent to them. One protective zone shall be established for the single right of way.
      2. The boundaries of protective zones’ of objects of gas supply systems shall be established in accordance with requirements of technical regulations.
      3. In the protective zone of objects of gas supply systems, the construction, erecting, ground, loading and unloading works, prospecting works, linked with installation of cased holes and surface holes, development of the sites, motor vehicle parks, locating a market, storage of materials, execution of obstacles and hoardings, discharge and draining of caustic corrosive and fuel and lubrication materials shall be prohibited without written permission, issued by an organisation, operating the objects of gas supply systems.
      4. Persons, carrying out economic activity without written permission of organisation, operating the objects of gas supply systems shall bear the liability for violations of safety requirements in the protective zone.

Chapter 8. FINAL AND TRANSITIONAL PROVISIONS

      Article 33. Liability for violation of the legislation of the Republic of Kazakhstan on gas and gas supply

      Violation of the legislation of the Republic of Kazakhstan on gas and gas supply shall entail liability, established by the Laws of the Republic of Kazakhstan.

      Article 34. Transitional provisions

      1. This Law shall be applied to relations, arising after its enforcement, with the exception of cases, provided by paragraph 2 of this Article.
      2. In relation to the buy and sell agreement of the raw, commercial and (or) liquefied petroleum gas, as well as on the technical services of gas-consuming systems and gas facilities of municipal and domestic customers, concluded before enforcement of this Law for a period of more than one calendar year, a seller or performer shall carry out their renegotiation subject to provisions of this Law until 31 December 2012.
      Provision of this paragraph shall not extend to buy and sell agreements of the raw, commercial and (or) liquefied petroleum gas, concluded within the frame of implementation of international agreements of the Republic of Kazakhstan.
      3. Legal entities, carrying out operation of gas-filling station, grouped tank installations, as well as wholesale and retail trade of the liquefied petroleum gas in the territory of the Republic of Kazakhstan shall bring their activity into conformity with this Law and undergo the accreditation procedures for up to 1 July 2012 for continuation of mentioned activity as gas-network organisations.

      Article 35. The order of enforcement of this Law

      This Law shall enter into force upon expiry of ten calendar days after its first official publication, with the exception of:
      1) subparagraphs 3) and 4) of paragraph 1 of Article 9, Articles 14, 15, paragraph 3, subparagraph 2) of paragraph 5 of Article 22, paragraphs 2 and 3 of Article 26 that shall be enforced from 1 April 2012;
      2) subparagraph 6) of Article 5, paragraphs 4 and 7 of Article 20 that shall be enforced from 1 June 2012;
      3) subparagraph 18) of Article 6, paragraph 2 and 4 of Article 17, paragraph 1 of Article 23, paragraph 1 of Article 24, paragraphs 1-3, 5-7 of Article 27, subparagraphs 2) and 3) of paragraph 7 of Article 28 that shall be enforced from 1 July 2012;
      4) subparagraph 1 of paragraph 7 of Article 28 that shall be enforced from 1 July 2013.

      The President
      of the Republic of Kazakhstan              N. Nazarbayev