Restrictions on investor activities under production sharing agreements

Plots under production sharing agreements that are provided for use by the investor, or their parts may cover wetlands, fertile black soils, and the boundaries of the field may approach settlements.

For the most part, states make a move to meet investors as a concession to the latter's compliance with environmental legislation.

However, despite environmental liberalism, investors are still obliged to at least minimally consider environmental standards and rules in the field of natural resource protection.

In terms of compliance with restrictions and prohibitions that are not included in the package obligation of investors, three regime environmental burdens should be distinguished in the form of regimes that the investor must comply with, namely:

1) the regime of the nature reserve fund.

2) the water protection regime.

3) the sanitary and protective regime.

Any activity that may negatively affect the state of natural and historical and cultural complexes is prohibited on the lands of the nature reserve fund and lands of historical and cultural significance.

Given that the state is in one ecosystem; to simplify the conclusion of production sharing agreements, the state establishes a limited regime for the nature reserve fund, limiting obligation of the investors narrowing to obey the law of the protection of the lands of reserves, sanctuaries, and natural parks.

That is, the use of land plots or part thereof within the nature reserve fund may be established to the extent of separating the above-mentioned objects from residential development areas.

Therefore, we recommend that investors consider the need to preserve natural habitats and species of natural fauna and flora in the long term when planning or implementing activities.

Sometimes the coordinates of the corner points of the sections are located within the boundaries of river sections.

Water protection zones are areas of economic activity where the use of persistent, potent pesticides, the establishment of cemeteries, animal burial grounds, landfills, and the discharge of untreated wastewater using lowland relief, as well as in streams, is prohibited.

In some cases, sand and gravel extraction is permitted outside the water fund lands in the dry part of the floodplain, in the ancient riverbeds.

The boundaries of water protection zones are determined by specially developed projects; therefore, we recommend that investors consider financing developed water protection zone projects.

Within sanitary protection zones, the construction of residential buildings, social infrastructure facilities associated with the constant presence of people around facilities that are sources of the release of harmful substances, odors, increased noise levels, vibration, ultrasonic and electromagnetic waves is prohibited to limit economic activity.

As an exception to the rules (sanitary protection zones), within the boundaries of the deposit area, it is allowed to locate depots, baths, laundries, garages, warehouses (except public and specialized food warehouses), buildings, departments, design bureaus, educational institutions, industrial and technical schools, premises for emergency personnel on duty, parking lots for transport, and local communications.