ARTICLE ON THE MINING LAW IN CAMEROON

Rights and Obligations of Petroleum Operators.

1. Conduct of petroleum operation (section 78)
   1. Carry out their activities: Petroleum operators have the right to carry out their activities thus, petroleum operations,
2. Can sub-contract.

• Holders of Petroleum contracts can sub-contract to qualified petroleum operators for which they are responsible.
• Sub-contractors shall comply with the provisions of the laws and regulations in force.
• Subcontracts of a value above the ceiling amount in the amount concluded in the petroleum contract, shall be disclosed to the minister in charge of hydrocarbons (MINHC).
• Holders of petroleum contracts can delegate part of petroleum operations or activity to another holder equally acting as an operator for less than 12 months subject to the approval of MINHC.
• Holders and their sub-contractors shall comply with the relevant hygiene and safety standards during petroleum operations in accordance with the law and regulatory pro…..
• Holders shall within 48 hours report any accidents to the competent administrative authorities.
• Holders shall comply with all measures they may be instructed to take by the minister in charge of hydrocarbon, including the uninstallation, at their expenses, of equipment required to prevent or eliminate dangers that their petroleum operations may cause to public safety, the safety of civilian personnel, the environment or the conservation of classified sites and reserves, waters sources or public roads as provided for by the legislation and regulations in force.

Holders of petroleum contracts in case of commercial hydrocarbons production and where the minister in charge of hydrocarbons so request to satisfy the needs of the Cameroon domestic market, holders shall as a matter of priority, sell to the state or any duly mandated or any mandated body, the share of the hydrocarbon product to which they are entitled. The terms and conditions for fulfilling such obligation shall be specified by regulation. Where the needs of the Cameroonian domestic market are satisfied, the holders shall freely dispose of the state of hydrocarbon production to which they are entitled.

The conclusion of a petroleum contract confers the right to refine or process hydrocarbons and/or sell and distribute products derived there from within the territory of Cameroon, since the said activity fall within the downstream petroleum sector, unless expressly authorized by the state.

Where a hydrocarbon deposit covers several contract areas or resulting from separate petroleum contract different provision within regard to entitlement to hydrocarbons, the holders may enter into an agreement known as ……. Agreement to exploit such deposit.

This agreement which contains a join exploitation plan, shall be approved by the minister in charge of hydrocarbons.

1. Compulsory insurance and civil liability.

Holders and their sub-contractors shall be bound to take out insurance policies with local insurance companies to cover civil liability and damages resulting from the conduct of petroleum operations.

 

The petroleum contract shall lay down the terms and conditions for guarantee and insurance policies which the holder is bound to take out for the state, third parties, the public and the environment.

Holders of petroleum permits or contracts who due to their actions or that of their sub-contractors …..any physical or material damages shall be without proof of fault, be subject to civil liability when related with their operations.

2. Local Content.

-The petroleum contract must help to assess local content as defined in 5.2 of the code.

-the local content involves the use of local goods, local service supply companies as well as human resource development.

The local content developed in petroleum contracts shall include:

1. A vocational and technical training program for Cameroonians in order to scale up their skills in the petroleum trade.
2. Any other aspect like to enhance local content.

• Holders of petroleum contracts shall recruit Cameroonians (in case of equal competence) qualified Cameroonians in all.

1. Petroleum contract holders and their sub-contractors shall be bound as a matter of priority, to award construction, insurance goods and services, material equipment and products supply contracts to companies under Cameroonian law, and with registered offices in Cameroon.
2. The Minister of hydrocarbon and or any mandated body (SNH) shall ensure the complementation and monitoring of this.

 

Environmental Protection Obligation that are envisage by:

Environmental protection section91 of the petroleum Code.

Petroleum operators shall carry out their activities in such a manner that will conserve natural resources, the environment persons and property, natural surroundings and the ecosystem.

Petroleum contract holders shall at their expense, carry out an environmental and social impact assessment in accordance with the environmental protection laws and regulations in force.

Even before commencing operation, the petroleum operators need to carry out environmental impact studies.

These studies are done once but in the event of expansion or renovation, an alternative or another environmental impact studies will be requested.

These studies are aimed at determining the favorable and unfavorable effects likely to be caused by the project to the environment, allowing the negative effects to be avoided, eliminated or compensated for.

Environment and social impact studies or assessment systematic examination aimed at examining…

Environmental impact statement.

A report on small scale projects that are not subject to an environmental to an environmental and social impact assessment.

The studies might be in summary or in detailed.

The project cannot commence without approval of the related environmental and social impact assessment.

The content of the summary environmental and social impact assessment:

1. Summary of the report in plain language in English and in French.
2. Description of the environment of the site and the region.

• Project description.

1. Review of the legal and institutional framework.
2. Report of field visit.
3. The convention and description of the project’s impact on the environment and the mitigation measures envisaged, (planned)

• Reference term of study.
• Environmental and social management plan, related bibliography References.

Request for an Environmental and Social Impact Assessment.

Company name

Share capital.

Sector of activity and number of jobs foreseen in the plan.

Term of reference of the study together with a descriptive and satisfactory memorandum of the project emphasizing on preservation and the reason for the choice of the site.

The payment of the applicable fee as set out in Art. 17.

After filing, a receipt is issued with and No. of file. After receipt of the file …. Has 10 days to.

If the ministry of the environment remains silent after 30 days following submission of the file, the promoter may consider the terms of reference admissible, administration has 20 days to its opinion.

Any promoter of a project is requested to submit to the competent administration and the ministry in charge of the environment in addition to the general project file, including company name, share capital, sector of activity, number of jobs foreseen in the plan.

The promoter must call on the consultancy firm, a consultant, NGO or association of his choice to carry out impact assessment of its project.

Submit to the commune same documents above, filing six copies of the impact notice with a local municipality.

1.500.000

1996 Law Relating To Environmental Management.

The government shall draw up a national environmental management plan. The plan shall be amended every 5 years.

Implement the Montreal Protocol and amendments relating thereto.

Offender shall within a time-limit of 20days as from the date of notification to contest the report. After this time limit, any contesting shall be inadmissible.

3. Environmental protection.

Holders shall ensure the conservation of natural resources, preserve safety of persons and property, conserve and protect the environment natural surroundings, and ecosystem.

Holders shall at their own expense carry out environmental and social impact assessment studies.

The impact assessment is mandatory and shall be ….

Technical supervision and financial and accounting control.

Petroleum operations shall be submitted to the supervision control and safety address provided in the code.

The Minister in charge of hydrocarbon shall supervise and ensure the implantation of petroleum contract obligations. The minister in collaboration with SNH, ensure the administrative and technical supervision, economic, accounting and financial control of petroleum operations.

The state shall have the right to audit the accounts of holders/operators through the Ministry of Finance.

Under pain of legal proceedings, civil servant, public officials and employees of public/semi-public bodies shall not, in petroleum companies have any interest, relation that might impair their independence.

Rules governing control and disclosure (6).

The holder shall provide the Minister in charge of hydrocarbons and /or any duly mandated government body with data within a maximum period of 30 days with effect from the date the data was generated. Such data shall include all field measurements documents, information, samples and periodic reports derived or resulting from petroleum operations.

All the data generated during petroleum operations shall remain state property. The terms and address for submitting such data shall be specified in the petroleum contract.

After a specific period, this data shall become part of public domain and may be accessed by any natural or legal person.

7) The preparation and submission of the work program and corresponding budgets for the purpose of enabling the operation committee to make a decision.

8) Obligation to supply the state as soon as possible with information, documentation, data pertaining to the petroleum operations.

The right during the term of the contract of the contract to dispose and freely export without having to pose, bond or guarantee, its share of the hydrocarbon. But shall be requested to fulfill all administrative formalities required by the current petroleum laws.

Comply with operating committee.

Required to pay taxes, fees and other miscellaneous payments provided for in this contract and by law.

Acquire permits, permissions approval and easements for access or occupancy at that may be necessary in order to carry out petroleum operations under the law.

Complete the minimum work program

The contractor is responsible for the conduct and performance of the petroleum operations in the contract area during the term of the contract.

Protection of the atmosphere.

The following shall be prohibited endangering the quality of air or provoking any form of modification of its characteristics.

Discharging pollutants in the air, smoke, toxic, corrosive or radioactive active dust or gases beyond the limit.

To avoid a….. pollution, building should be constructed.

Specially protected areas subject to particular measures shall be enacted where necessary. Protection of continental walls or flood plains.

The administration in charge of water resources shall make an inventory establishing the extent of pollution of continental waters in keeping with physical, chemical, biological and bacteriological criteria. This inventory is amended periodically. Protection of the coast and maritime waters.

Protection of soils and sub-soils.

Holders of mining permits shall rehabilitate the exploited sites.

Protection of human settlements