MINING USUFRUCT AGREEMENT
with Respect to
Prospecting for and Exploration and Exploitation of
Natural Gas and Oil
between
THE STATE TREASURY OF
THE REPUBLIC OF POLAND
and
LUBEX PETROLEUM COMPANY Sp. zo o.o.
This Agreement is entered into this 20th day of December, 1996 by and
between the STATE TREASURY OF THE REPUBLIC OF POLAND (herein the "Treasury"),
represented by the Minister of Environmental Protection, Natural Resources and
Forestry Xx. Xxxxxxxxx Xxxxxxxxxxx (herein the "Minister")
and
LUBEX PETROLEUM COMPANY Sp. z o.o., a Polish limited liability company, with its
seat at Wal Miedzeszynski 000, 00-000 Xxxxxxxx, Xxxxxx, entered into the
Commercial Register kept by the District Court in Warsaw, under number 48161
(herein the "Company"), represented by Xx. Xxxxx X. Xxxxxx.
WHEREAS, the Company desires to explore for and exploit Natural Gas and Oil
in the Republic of Poland; and
WHEREAS, the Company, through its parent company, has the experience,
financial and technical ability and resources, and professional expertise
efficiently to explore for, develop and exploit Natural Gas and Oil in the
Republic of Poland; and
WHEREAS, the ownership of all Natural Gas and Oil existing in its natural
condition within the territory of the Republic of Poland belongs to the
Treasury;
NOW, THEREFORE, the Parties agree as follows:
ARTICLE I
DEFINITIONS
1.1 The following terms when used in this Agreement shall have the meaning
ascribed to them in the Geological and Mining Law as in effect on the date of
this Agreement:
Exploration
Exploitation
Geological Documentation
Mineral Deposit
Mining Area
Prospecting
1.2 The following terms when used in this Agreement shall have the meaning
ascribed to them hereunder:
1.2.1 "Block" means the areas specified in Schedule "A". At the
effective date of this Agreement there are eight (8) Blocks, identified in
Schedule "A" hereto as Blocks 255, 275, 295, 296, 316, 336, 337 and 338.
1.2.2 "Joint Concession" or "Joint Concessions" means the
Concessions granted under the Geological and Mining Law for Prospecting for
and the Exploration and Exploitation of Natural Gas and Oil of the type
referred to in Article 24 of the Geological and Mining Law.
1.2.3 "Concession Effective Date" as to any particular Joint
Concession means the date on the Minister signs the Joint Concession.
1.2.4 "Concession Operations" means all or any of the operations
covered by the applicable Joint Concession.
1.2.5 "Exploitation Period" means the thirty (30) years beginning
on the first day after the end of the Second 3-Year Exploration Period, and
with respect to any individual Mining Area from which Natural Gas or Oil in
paying quantities is then being recovered, such Exploitation Period can be
extended from year to year so long as Natural Gas or Oil is being produced
therefrom in paying quantities.
1.2.6 "Exploration Period" means the First 3-Year Exploration
Period and the Second 3-Year Exploration Period.
1.2.7 "First 3-Year Exploration Period" means the three (3) years
beginning on the Concession Effective Date of the last Joint Concession
issued to the Company for all eight (8) Blocks specified in Schedule "A".
1.2.8 "Second 3-Year Exploration Period" means the three (3) years
beginning on the first day after the end of the First 3-Year Exploration
Period.
1.2.9 "Mining Usufruct Area" means the Block or Blocks described
in Schedule "A" excluding any portion thereof in respect of which the
Company's rights hereunder are from time to time relinquished or
surrendered by the Company.
1.2.10 "Oil" means mineral oil, asphalt, ozokerite and all kinds of
hydrocarbons and bitumens, both in solid and in liquid form, in their
natural state or obtained from Natural Gas by condensation or extraction.
1.2.11 "Designated Entity" means an entity designated by the
Minister to represent it for certain purposes under this Agreement as set
forth in Article XVII.
1.2.12 "Natural Gas" or "Gas" means hydrocarbons that are in a
gaseous state under normal atmospheric conditions of temperature and
pressure, including wet gas, dry gas, casinghead gas and all other gaseous
hydrocarbons including the residue gas remaining after the condensation or
extraction of liquid hydrocarbons from gas, but excluding condensed or
extracted liquid hydrocarbons.
1.2.13 "Parties" means the Treasury and the Company, and "Party"
means either of the Parties.
1.2.14 "Geological and Mining Law" means the Act of February 4th,
1994.
ARTICLE II
ESTABLISHMENT OF MINING USUFRUCT
2.1 The Minister acting on behalf of the Treasury, as the sole owner of
the Mineral Deposits, hereby establishes in favor of the Company a mining
usufruct in the Mining Usufruct Area regarding the Prospecting for, Exploration
and Exploitation of Natural Gas and Oil. Such right is of an exclusive nature.
2.2 The mining usufruct with respect to each of the eight (8) Blocks is
subject to the Company obtaining a Joint Concession covering such Block. The
Minister agrees to use its best efforts leading to the issuance of Joint
Concessions covering all of the Blocks and leading to the designation and
approval of Mining Area boundaries which may be requested by the Company from
time to time.
ARTICLE III
GRANT OF RIGHTS AND EFFECTIVENESS
3.1 This Agreement is effective when executed by both Parties, but may be
terminated after sixty (60) days' written notice by the Company if the eight (8)
Joint Concessions referred to in Article 2.2 are not granted within four (4)
months after the Company submits the eight (8) concession applications.
3.2 This Agreement shall terminate if no Joint Concession is granted, or
upon the expiry or withdrawal of the last Joint Concession granted to the
Company within the Mining Usufruct Area, or as otherwise provided by law.
3.3 The duration of this Agreement shall be for so long as any Joint
Concession granted to the Company within the Mining Usufruct Area remains in
effect.
ARTICLE IV
WORK PROGRAM
4.1 The Company will commence ifs work program not later than thirty (30)
days after the beginning of the First 3-Year Exploration Period.
4.2 Geological and Geophysical Evaluation
4.2.1 The Company will carry out and complete a regional
evaluation within one or more Blocks during the first twenty-four (24)
months of the First 3-Year Exploration Period. This evaluation will include
the following:
a. compile, examine, interpret and process existing seismic
data;
b. compile and interpret existing well data;
c. compile, process and interpret existing potential field
data;
d. integrate seismic, well and potential field data in a
regional report;
e. identify prospective ("target") reservoir horizons;
f. identify structural or structural-stratigraphic traps
("potential drill sites").
4.2.2 The Company will carry out and complete an initial prospect
delineation during the First 3-Year Exploration Period, during which it
will:
a. determine optimal seismic acquisition parameters; and
b. acquire 2D or 3D seismic data over 500 km of seismic lines;
4.3 During the First 3-year Exploration Period the Company will drill one
well to the depth necessary to test a Carboniferous/Devonian objective, which is
estimated to be 2,000 to 3,000 meters. The first well may be located anyplace
within the Mining Usufruct Area at the discretion of the Company.
4.4 Unless the Company has relinquished all of its interest in the Mining
Usufruct Area on or before the end of the First 3-Year Exploration Period, then
during the Second 3-year Exploration Period the Company will drill at least one
well in each of the Blocks, excluding the Blocks which have been relinquished on
or before the end of the First 3-Year Exploration Period and the Blocks in which
a well was drilled during the First 3-Year Exploration Period. Each of such
xxxxx shall be drilled to the depth necessary to test a Carboniferous/Devonian
objective, which is estimated to be 2,000 to 3,000 meters.
ARTICLE V
DESIGNATION OF MINING AREAS
5.1 During the term of this Agreement, the Company may discover Natural
Gas and Oil deposits which it believes can be extracted profitably, in which
such case the Company shall prepare appropriate documents and request:
5.1.1. approval of the Geological Documentation by the appropriate
agency of the state geological administration; and
5.1.2 a separate decision from the concessionary agency regarding the
detailed conditions for extracting the Natural Gas and Oil.
5.2 The Mining Area shall be designated based on geological documentation
and it will include the entire surface area within the contour of the deposit of
Natural Gas and Oil demonstrated by available seismic, gravity and well data.
5.3 The Company shall have the right to extract and exploit Natural Gas
and Oil upon approval of Geological Documentation and designation of a Mining
Area.
ARTICLE VI
OWNERSHIP OF DATA AND NATURAL GAS AND OIL
6.1 Ownership of all information and data obtained as a result of
Concession Operations shall be vested in the Company. The Company shall,
however, provide the Minister with the information and reports described in
Article 8.5 and 8.6.
6.2 Ownership of all Natural Gas and Oil produced by the Company from the
Mining Usufruct Area shall pass to the Company at the wellhead.
6.3 After a Concession Effective Date the Company will have access to and
the right to copy, free of cost other than reasonable costs of reproduction and
handling, all geological, geophysical, geochemical, drilling, engineering, well
logs, and other information and data relating to Natural Gas and Oil owned or
possessed by the Treasury or the Minister in relation to such Block.
ARTICLE VII
RELINQUISHMENT
7.1 The Company shall relinquish part or parts of the Mining Usufruct Area
as follows:
7.1.1 At the end of the Second 3-Year Exploration Period the Company
shall relinquish all of the lands within the Mining Usufruct Area which are
not within the boundaries of any Mining Areas that have been designated for
Exploitation or duly applied by the Company for such designation.
7.1.2 The Company may relinquish all or part of the Mining Usufruct
Area upon expiration of the First 3-Year Exploration Period and at any time
during the Second 3-Year Exploration Period subject to fulfillment of any
accrued obligations.
7.2 The areas to be relinquished under this Article shall be determined by
the Company, provided that areas to be relinquished shall be of sufficient size
and convenient shape to enable activities to be carried out thereon by others.
The Company shall give notice in writing to the Minister of said area(s) no
later than thirty (30) days prior to the end of the relevant period, including a
map showing said area(s) with the geographic location and the coordinates of the
connecting points of the boundary lines. The Minister shall advise the Company
within fifteen (15) days of such notice whether it agrees with the area(s)
selected for relinquishment in accordance with the aforementioned criteria
relating to size and shape.
ARTICLE VIII
CONDUCT OF OPERATIONS
8.1 The Company is responsible for the conduct of the Concession
Operations contemplated by this Agreement and the Joint Concessions and is to
provide all capital, machinery, equipment, technology and personnel necessary
for the conduct of Concession Operations.
8.2 The Company shall conduct the Concession Operations diligently and in
accordance with the laws of Poland and good international petroleum industry
practices as designed to permit the economic, efficient and safe exploration
for, and development and production of, Natural Gas and Oil.
8.3 The Minister will endeavor to provide the Company with assistance as
described below when the Minister believes it is in the best interest of the
Company to do so, but failure to provide the described assistance will not
result in an extension of time in which the Company is to perform the relevant
obligations, nor create any liability or responsibility on the part of the
Treasury.
8.3.1 The Minister will assist the Company in its application for and
insofar as possible in granting by national and local Polish government of
permissions required for the performance of Concession Operations,
including, but not limited to, licenses, permits, approvals,
authorizations, consents, visas, work permits, surface rights and
easements.
8.3.2 The Minister will assist in obtaining and providing to the
Company such general information as may be reasonably required by the
Company for planning and executing projects incidental to Concession
Operations.
8.4 In addition to all other notices and reports required by law, the
Company shall notify the Minister in advance (two months in advance, if
possible) of all significant scheduled field activities, such as geological and
geophysical surveys and drilling. The Company shall also notify the Minister in
advance (two months in advance, if possible) of abandonment of any xxxxx that
have been in production. In the event such advance notice is not practical, or
in the event of emergency, the Company shall notify the Minister within
forty-eight (48) hours following such event.
8.5 The Company shall provide to the Minister or to the Designated Entity,
as defined in Article XVII, data and information collected and compiled with
respect to Concession Operations in the Mining Usufruct Area, as follows:
8.5.1 one set of geological reports, studies, or interpretations
and the maps, sections and other documents related thereto;
8.5.2 one set of all geophysical recordings, measurements and
reports, with all maps profiles, sections, interpretations, studies, and
other documents relating thereto, and copies of recordings (tapes or
otherwise and all supporting data);
8.5.3 one set of final well reports and composite logs
representiing the lithology and other parameters relating to each well
drilled;
8.5.4 a representative portion of all cores, samples, fluids and
other materials taken from outcrops and xxxxx; and
8.5.5 one set of fluid measurements, analyses or other results in
final form produced by or for the Company in connection with Concession
Operations
All of such information shall be kept confidential by the Minister or the
Designated Entity for a period of one year after it is provided.
8.6 The Company shall make such other reports to the Minister in such
form, detail, and at such tune as the Minister may reasonably require with
respect to exploration, production, employment or training, or such other
matters related to the conduct of Concession Operations hereunder, provided,
however, that the Minister's requests for such reports shall not interfere
unreasonably with the Company's ability to carry out Concession Operations
efficiently or necessitate any undue expense. Pursuant to the above mentioned
determination, the Company shall submit monthly to the Minister a report of the
progress of the work and a short memorandum of the results thereof.
8.7 The Company shall give prompt written notice to the Minister in the
event of any change of the Company's name, organizational form, increase or
decrease of the Company's capital structure, petition for bankruptcy,
restructuring of debt, or liquidation. The Minister may request any necessary
clarification in these matters.
ARTICLE IX
PROTECTION OF ENVIRONMENT AND SAFETY
9.1 The Company shall conduct Concession Operations in accordance with the
laws of Poland and good international petroleum industry practice relating to
the protection of the environment, including but not necessarily limited to the
following:
9.1.1 The Company shall in particular take all commercially
reasonable steps required by Polish law and good international petroleum
industry practice to.
a. ensure that its operations minimize ecological damage or
destruction;
b. control the flow and prevent the avoidable escape or waste
of Natural Gas and Oil or ground water discovered in or produced from
the Mining Usufruct Area;
c. prevent damage to Natural Gas and Oil or ground water
bearing strata; and
d. prevent damage to land, fresh water supplies, animal life,
flora, crops, buildings or other structures.
9.1.2 If there is a release of Natural Gas or Oil or other
material on land, fresh water, or any other form of pollution or other harm
to fresh water, land, animal life or flora as a result of Concession
Operations, the Company shall promptly take all necessary measures to
control the pollution, to clean up any Natural Gas and Oil or released
material, or to repair, to the extent commercially feasible, any damage
resulting from such circumstances.
9.1.3 In the event of an emergency the Company shall notify the
Minister immediately and shall take such action as may be prescribed by the
appropriate governmental authority and otherwise act in accordance with
good international petroleum industry practice.
9.1.4 The Company shall take steps to ensure restoration of the
operating environment upon termination of the Joint Concessions. The
Company shall provide the Minister a copy of the plans for restoration of
the operating environment that are required by law.
ARTICLE X
EMPLOYMENT AND TRAINING
10.1 Subject to the applicable provisions of law, the Company shall be
free to employ such personnel and sub-contractors as it may choose for the
purpose of carrying out the Concession Operations. To the extent the Company
deems it reasonable and prudent to do so, and as far as is consistent with
efficient operations and with the Company's responsibility for the conduct of
the Concession Operations, in recruiting employee candidates the Company shall
give preference to Polish citizens who are qualified by education, training and
experience to conduct the tasks for which they are considered; and in selecting
subcontractors to carry out the Concession Operations in the Republic of Poland
the Company shall give preference to Polish sub-contractors, provided they are
competitive in terms of quality, cost, and the ability to meet required
schedules.
10.2 The Company shall provide such training as it deem appropriate
for Polish citizens employed directly or indirectly in the Concession Operations
during term of this Agreement.
10.3 Notwithstanding the above, the Company will spend US$ 25,000 per
year during the Exploration Period on training of Polish citizens, as directed
by the Minister. The amounts and kinds of such expenditures thereafter shall be
determined from time to time by further agreement between the Company and the
Minister.
ARTICLE XI
ASSIGNMENT
11.1 The Company has the right to assign or transfer all or part of
its rights and obligations under this Agreement to any affiliate or third party,
subject to the requirement that the Company obtain the prior written consent of
the Treasury, which consent shall not be unreasonably withheld or delayed
provided that the Minister shall be satisfied that any such assignee shall be
technically and financially able to carry out the terms and conditions of this
Agreement.
11.2 A change of ownership of the Company's shares shall not be
considered an assignment or transfer of rights under this Agreement.
ARTICLE XII
FORCE MAJEURE
12.1 Performance under this Agreement by the Company or the Treasury
shall be excused in the event such performance is delayed or prevented by acts
of Force Majeure. Acts of Force Majeure are events beyond the reasonable control
of the Party claiming to be affected by any such event, which have not been
brought about at its insistence and include, but are not limited to, war,
insurrection, riot, civil disorder, embargo, blockade, explosion, fire,
lightening, earthquake or other adverse weather conditions, strikes,
non-availability of equipment or any other event of a similar nature, whether or
not of the same type or kind. The foregoing is based on the proviso, however,
that the Company or the Treasury, as the case may be, shall be required to use
reasonable diligence to seek to overcome the obstacle and resume performance
within a reasonable time after the obstacle is removed.
12.2 If Concession Operations are delayed, curtailed or prevented by
such causes, then the time for carrying out the obligations affected thereby,
the duration of the relevant period of Concession Operations, the term of this
Agreement, and all rights and obligations hereunder, all shall be extended for a
period equal to the delay caused by the Force Majeure occurrence plus such
period of time as is necessary to reestablish operations.
12.3 The Party whose ability to perform its obligations is so affected
shall notify forthwith the other Party thereof in writing stating the cause, and
the Parties shall do all that is reasonably within their power to remove such
cause.
ARTICLE XIII
TERMINATION
13.1 The Company may relinquish all or any part of its rights and be
relieved of the related obligations under this Agreement on 60 days' notice to
the Minister.
13.2 In the event the Company takes an action or fails to take an
action which results in a material breach of this Agreement, then within ninety
(90) days of receiving written notice from the Minister of such alleged material
breach the Company shall take action reasonably intended to remedy such alleged
breach. If within the time allowed the Company fails to take remedial action,
then this Agreement may be terminated by the Minister on behalf of the Treasury
on 60 days' written notice.
13.3 Should the Company dispute the existence of circumstances in
Article 13.2, the Company may refer the dispute at any time before the end of
ninety (90) days after receipt of the notice of termination from the Minister to
arbitration as provided by Article XIV and termination of the Agreement by the
Minister on behalf of the Treasury shall not take effect except under the terms
of any arbitration award which results.
13.4 Termination under this Article XIII shall take place without
prejudice to any right which may have accrued to the Treasury or the Company
under the Agreement prior to such termination.
ARTICLE XIV
ARBITRATION
14.1 Any dispute as to any matter or operation arising out of or in
connection with this Agreement, including, without limitation, any dispute as to
the validity, construction, enforceability or breach of this Agreement shall be
exclusively and finally settled by arbitration, and any Party may submit such a
dispute to arbitration.
14.2 Arbitration proceedings shall be conducted by three (3)
arbitrators in accordance with the Rules of UNCITRAL, the United Nations
Commission on International Trade Law.
14.3 Unless otherwise agreed in writing by the Parties, the third
arbitrator appointed pursuant to Article 14.2 shall not be a national of Poland
or of the same nationality as the main shareholder(s) of Company.
14.4 In any arbitration proceeding hereunder:
14.4.1 proceedings shall, unless otherwise agreed in writing by the
Parties, be held in Warsaw, Poland;
14.4.2 the Polish language shall be the official language for all
purposes; and
14.4.3 the decision of the majority of the arbitrators shall be
final and binding and shall be enforceable in any court of competent
jurisdiction.
14.5 In case of arbitration, the Parties shall continue their
performance of this Agreement unless it is impossible to do so for reason of
Force Majeure or unless the Company's rights hereunder have been expropriated,
nationalized or otherwise taken.
14.6 The costs of arbitration shall be borne in the manner determined
by the arbitration tribunal.
14.7 Each of the Parties hereby irrevocably waives any and all claims
to immunity in regard to the arbitration proceedings and any proceedings to
enforce, recognize or execute any arbitral award rendered by a tribunal
constituted pursuant to this Agreement including, without limitation, immunity
from service of process, immunity from jurisdiction of any court, and immunity
of such of his property as is of a commercial nature from execution.
ARTICLE XV
GOVERNING LAW AND STABILIZATION
15.1 This Agreement shall be governed by the laws of Poland and
international treaties which Poland has adopted.
15.2 The Minister on behalf of the Treasury acknowledges that the
Company has entered into this Agreement in reliance on the Polish law as in
existence on the date the Company executes this Agreement, particularly the laws
and ordinances relating to royalties, taxation, the export of Oil, the sale of
Natural Gas, and the repatriation of profits. The Minister on behalf of the
Treasury hereby represents that all rights granted to the Company hereunder are
in conformity with Polish law as in effect on the date the Company executes this
Agreement, as such law applies to the Company. In the event that any change to
the law of Poland occurs or the Government takes any other action which
restricts, divests or limits any rights or benefits accruing to the Company or
which increases the Company's obligations or costs of operation under this
Agreement or under the law of Poland, the Company may, at any time thereafter so
notify the Minister in writing. Promptly upon receipt of such notice, the
Minister and the Company shall meet to negotiate in good faith and agree upon
the modifications which need to be made to the terms of this Agreement to
restore the Company's rights and benefits to a level equal to what they would
have been had such change not occurred, or upon such other remedy as they agree
may be appropriate. In the event the Parties are unable to agree within ninety
(90) days after the Company's notice to the Minister upon the modifications
which are needed to the Agreement or upon such other remedy as may be required,
then either Party may at any time thereafter refer the matter or matters in
dispute to arbitration pursuant to Article XIV.
ARTICLE XVI
MINING USUFRUCT FEES & OTHER PAYMENTS
16.1 The Company shall pay the Treasury a mining usufruct fee as
follows:
16.1.1 The Company shall pay the Polish zloty equivalent of US$ 2,500
per each Block within 30 days from obtaining the eight Joint Concessions
covering the entire Mining Usufruct Area;
16.1.2 Moreover, the Company will be obligated to pay the Treasury a
mining usufruct fee in Zlotys based on the market value of the reserves in
place. The fee will be negotiated by the Treasury and the Company within
the range of 0.01 to 0.5 per mil of market value of the reserves in place
as determined in accordance with standard international petroleum industry
engineering criteria. The mining usufruct fee shall:
a. apply to only so much of the reserves that can be extracted
using conventional primary recovery methods;
b. be negotiated and determined with respect to each Mining
Area at the time the boundaries thereof are designated pursuant to
Article 5.2 above; and
c. be payable in five consecutive annual installments,
commencing on the date such Mining Area is designated.
16.1.3 The mining usufruct fee shall be paid to the following bank
account:
Ministry of Environmental Protection, Natural Resources and
Forestry,
Biuro Administracyjno -Budzetowe
NBP O/O Warszawa
account # 1052-680-223-1
title: 28.31.3996 Section 64 - mining usufruct;
or such other account as the Minister may notify to the Company in
writing.
16.2 The concession fee referred to in Article 85 of the Geological
and Mining Law of February 4, 1994 shall amount to the zloty equivalent of US$
25,000 per each Joint Concession covering one Block, of which US$ 12,500 shall
be payable within 30 days from obtaining the Joint Concession and 12,500 shall
be payable within 30 days from expiration of the First 3-Year Exploration
Period. The Company may be relieved from payment of the second part of the
concession fee with respects to the Blocks it shall relinquish in accordance
with Article 7.1.1 above. 60 percent of the fee shall constitute the revenue of
the local authorities on whose territory the activities under the Joint
Concession are to be conducted and the remaining 40 percent shall constitute the
revenue of the National Fund for Environmental Protection and Water Management.
16.3 The Company envisages that it will spend the equivalent of US$
2,000,000 to US$ 4,000,000 during the First 3-Year Exploration Period and US$
4,000,000 to US$ 10,000,000 during the Second 3-Year Exploration Period.
ARTICLE XVII
DESIGNATED ENTITY
17.1 The Minister may designate an entity of its choice to represent
the Minister for the purposes of receipt and safekeeping of reports,
interpretations, maps, data, cores, samples, and other information.
17.2 The appointment of a Designated Entity notwithstanding, the
Treasury shall remain responsible to the Company for all of its obligations to
the Company as provided herein.
17.3 The Minister shall notify the Company in writing of its naming of
the Designated Entity, of the specific purpose to which such designation
relates, and of all communication and other details which the Company requires
to know about such Designated Entity. Such notification shall be made in good
time to enable the Company to comply with its obligations hereunder and so as
not to disrupt or delay Concession Operations.
ARTICLE XVIII
NOTICES
18.1 All notices, applications, requests, agreements, approval,
consents, instructions, delegations, waivers or other communications to be
given, submitted or made hereunder by any Party to another shall be sufficiently
given if in writing and delivered in person to an authorized representative of
the Party to whom such notice is directed or when sent by registered post,
postage paid, or by telegram, telex, facsimile or cable, to the address or
addressee of the other Party as follows, or to such other address as a Party may
specify in writing to the other:
for the Treasury Xxxxx Xxxxxxxxxx, Director
or the Minister: Bureau of Geological Concessions
Ministry of Environmental Protection,
Natural Resources and Forestry
00/00 Xxxxxxxx Xxxxxx
00-000 Xxxxxx
Facsimile: 25-15-03
for the Company: Xxxxx Xxxxxxx
Lubex Petroleum Company, Sp. z o.o.
Wal Xxxxxxxxxxxxx 000
00-000 Xxxxxxxx Xxxxxx
Facsimile: 000-00-00, 000-00-00
18.2 Notices when given in terms of Article 18.1 shall be made in the
Polish language shall be effective when delivered, if delivered during business
hours of working days; if received outside business hours such notices shall be
effective on the next following working day.
IN WITNESS WHEREOF, the representatives of the Parties of this Agreement
being duly authorized have hereunto set their hands and have executed these
presents this 20th day of December, 1996.
The Minister of Environmental Protection, Natural Resources and Forestry of The
Republic of Poland
by: /s/ Xx. Xxxxxxxxx Xxxxxxxx
Secretary State
Lubex Petroleum Company, Sp. z o.o.
by: /s/ Xxxxx X. Xxxxxx
Member of the Management Board
SCHEDULE "A "
MAP AND COORDINATES OF THE MINING USUFRUCT AREA
In the event of conflict between the coordinates specified below and the map
attached hereto, the coordinates shall control.
The Mining Usufruct Area shall include all of the lands within Blocks 255, 275,
295, 296, 316, 336, 337 and 338. The coordinates of the Blocks are as follows:
Block 255 21.00'00" 21.30'00"
52.00'00" 52.00'00"
21.00'00" 21.30'00"
51.45'00" 51.45'00"
Block 275 21.00'00" 21.30'00"
51.45'00" 51.45'00"
21.00'00" 21.30'00"
51.30'00" 51.30'00"
Block 295 21.00'00" 21.30'00"
51.30'00" 51.30'00"
21.00'00" 21.30'00"
51.15'00" 51.15'00"
Block 296 21.30'00" 22.00'00"
51.30'00" 51.30'00"
21.30'00" 22.00'00"
51.15'00" 51.15'00"
Block 316 21.30'00" 22.00'00"
51.15'00" 51.15'00"
21.30'00" 22.00'00"
51.00'00" 51.00'00"
Block 336 21.30'00" 22.00'00"
51.00'00" 51.00'00"
21.30'00" 22.00'00"
50.45'00" 50.45'00"
Block 337 22.00'00" 22.30'00"
51.00'00" 51.00'00"
22.00'00" 22.30'00"
50.45'00" 50.45'00"
Block 338 22.30'00" 23.00'00"
51.00'00" 51.00'00"
22.30'00" 23.00'00"