AZERBAIJAN: Law No. 439-IG of 1998 on Subsoil (2019 Ed.)

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1998
Effective Start Year: 
2019
Scope: 
National
Document Type: 
Law
Economic Sector: 
Energy
Energy Types: 
Coal
Issued by: 
Office of the President of the Republic of Azerbaijan
Source: 
Electric Power Council of the Commonwealth of Independent States (RU)
Database of CIS Legislation (EN)
E-Qanun (AZ)
File: 
Law No. 439-IG of 1998 on Subsoil (2019 Ed.)(RU)
Law No. 439-IG of 1998 on Subsoil (2019 Ed.)(AZ)
Overall Summary: 
The Law was adopted in 1998 to establish legal framework for subsoil in the Republic of Azerbaijan. The focus areas of the present Law include efficient and sustainable use of subsoil resources, expansion of exploration activities along with sustaining the base of mineral resources, protection and restoration of the environment, enabling favorable conditions for investments into the subsoil sector. The policy highlights main drivers and challenges for the development of mineral resources in Azerbaijan, addresses gaps in productive capacities and identifies existing environmental concerns. Significant attention is given to the issue of nature conservation and restoration in the area of the Caspian Sea. ---- The present Law complies with the provisions of the Constitution of the Republic of Azerbaijan and other relevant legal acts on subsoil. ---- Art. 8 stipulates that individuals and legal entities have rights over exploration and exploitation of mineral resources in the Republic of Azerbaijan.
Environment
Energy environmental priorities: 
Art. 11 underscores that the regulation of subsoil exploration will be based on due consideration of environmental priorities. Exploration activities thereby can be limited to a certain extent or fully prohibited in case they pose significant threats to the environment or human health. Activities on the use of subsoil in residential settlements, zones adjacent to cities, in transportation or communication areas that pose danger to human health are partially or fully prohibited. --- The obligation of regulatory bodies is to enforce the permission granting system in the exploration of mineral resources (Art. 10). --- Chapter 3, art. 21 places an additional emphasis on the issue of nature conservation with respect to resource exploration activities. A comprehensive set of measures to enhance sustainability in the subsoil sector includes prevention of pollution, reduction of associated radiation, fire and flood risks. ---- Art. 37 focuses on regulatory priorities and underscores the need for ensuring compliance with the established norms and standards in the area of exploration, preservation and use of the subsoil. Furthermore, the policy aims to strengthen the system of state environmental management.
Governance
Energy management principles: 
Art. 15. Regulatory efforts aim to unbundle the competitive elements in Azerbaijan subsoil sector. The policy seeks to secure greater access to the industry for contractors, enable a competitive environment and improve transparency of natural resource markets. Provisions are made for restraining monopolistic activities.