中华人民共和国对外合作开采陆上石油资源条例（修订） State Council, PRC Exploitation of Onshore Oil Resources in Cooperation wi

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　　PART THREE　OIL OPERATIONS

　　Article 20　The operator must formulate a plan for the overall development of the oil (gas) field and obtain the approval of the department designated by the State Council before it carries out development operations and production operations.

　　Article 21　The personnel required in the oil operations may be agreed in the oil contract, and the operator may recruit Chinese citizens in preference.

　　Article 22　In carrying out oil operations, the operator and contractor shall comply with the laws, regulations and standards of the state concerning environmental protection and safe operation, and shall follow international practices to protect agricultural land, aquatic resources, forest resources and other natural resources and prevent pollution and damage to the atmosphere, oceans, rivers, lakes, ground water and other land environment.

　　Article 23　Land use in carrying out oil operations shall be handled in accordance with the PRC, Administration of Land Law and other relevant provisions of the State.

　　Article 24　Title to the data, records, samples, evidences and other original information of various oil operations set out in Article 18 hereof shall be vested in the Chinese Oil Companies.

　　The use, transfer, donation, exchange, sale or publication of the data, records, samples, evidences and other original information set out in the preceding paragraph or the shipment or transmission of them out of the territory of the People's Republic of China must be carried out in accordance with the relevant provisions of the State.

　　PART FOUR　DISPUTE RESOLUTION

　　Article 25　If a dispute arises between the parties to a contract for cooperative exploitation of onshore oil resources in connection with the performance of the contract, the dispute shall be resolved through consultation or conciliation. If the parties are not willing to carry out consultation or conciliation, or if the consultation or conciliation fails, the dispute may be submitted to arbitration by a Chinese arbitration institution o

r other arbitration institution in accordance with the arbitration provision of the contract or the arbitration agreement made subsequently in writing.

　　If the parties have not agreed on an arbitration provision in the contract and fail to subsequently enter into an arbitration agreement in writing, a suit may be brought to a people's court.

　　PART FIVE　LEGAL LIABILITIES

　　Article 26　If anyone violates these Regulations by committing any of the following acts, the department designated by the State Council will, according to its authority, order it to correct the act within a time limit and give it a warning. If it fails to correct the act within the time limit, the department may order to stop carrying out the oil operations. If the act constitutes a crime, criminal liabilities shall be pursued according to law.

　　1. in violation of the first paragraph of Article 9 hereof, entry into a foreign cooperative block without authorization to carry out oil exploration or entry into an agreement with a foreign enterprise for oil exploitation in that foreign cooperative block;

　　2. in violation of Article 18 hereof, failure in the course of contract performance to timely and accurately report the oil operations to the Chinese Oil Companies, failure to provide the information and samples as well as various reports on technical, economic, accounting and administrative matters to the Chinese Oil Companies as required;

　　3. in violation of Article 20 hereof, carrying out of development operations and production operations without authorization before the overall development plan of the oil (gas) field has been approved; or

　　4. in violation of the second paragraph of Article 24 hereof, use, transfer, donation, exchange, sale or publication of the data, records, samples, evidences and other original information of oil operations or shipment or transmission of them out of the territory of the People's Republic of China, all without authorization.

　　Article 27　If anyone violates Article 11, Article 16, Article 22 or Article 23 hereof, the relevant state authority will impose punishment in accordance with the relevant laws and regulations. If the violation constitutes a crime, criminal liability shall be pursued according to law.

　　PART SIX　SUPPLEMENTARY PROVISIONS

　　Article 28　The following terms in these Regulations shall have the following meanings:

　　1. "Oil" means the crude oil and natural gas existing underground, being extracted or already extracted.

　　2. "Onshore oil resources" means underground oil resources existing on land anywhere (including beaches, islands and sea area extending to the depth of 5 metres).

　　3. "Exploitation" means exploration, development, production and sale of oil and the activities relating thereto.

　　4. "Oil operations" means the exploration, development and production operations and their related activities that are carried out in contract performance.

　　5. "Exploration operations" means all the works that are carried out using geological, geophysical and geochemical methods, including drilling wells, for discovering oil traps and all the works, such as the drilling of evaluation wells, the feasibility studies and the formulation of the overall development plan of the oil (gas) field, that are carried out on a discovered oil trap for determining its commercial value.

　　6. "Development operations" means the designing, construction, installation, drilling and related researches that are carried out after the date of the approval of the overall development plan of the oil (gas) field in order to achieve oil production, including the production activities prior to the commercial production.

　　7. "Production operations" means all the operations and related activities that are carried out for production of oil from the date of commercial production of an oil (gas) field.

>　　Article 29　Provisions of Articles 4, 11, 12, 15, 16, 17 and 21 hereof are applicable to foreign contractors.

　　Article 30　Exploitation of coalbed methane resources in cooperation with foreign parties shall be implemented exclusively by China United Coalbed Methane Co., Ltd. by reference to these Regulations.

　　Article 31　These Regulations shall be implemented as of the date of promulgation

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