License registers - Extractive Industries Transparency … · Requirement 2.3. set out the...
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Guidance note 3 June 2016 This note has been issued by the EITI International Secretariat to provide guidance to implementing countries on meeting the requirements in the EITI Standard. Readers are advised to refer to the EITI Standard directly, and to contact the International Secretariat to seek further clarification. Contact details can be found at www.eiti.org. Website www.eiti.org Email [email protected] Telephone +47 22 20 08 00 Fax +47 22 83 08 02 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway License registers Guidance note 3 – Requirement 2.3 Summary The majority of resource rich countries have registry databases to help them manage their extractive industry licensing systems. Publication of license registers and related information on extractive rights enable citizens to see which companies have been awarded rights to exploit their natural resources. Keeping an accurate registry system is also essential to encourage investment, to optimise the sector’s contribution to the country, to clarify property rights, and to avoid conflicts over the ownership and location of tenements. The EITI requires that implementing countries maintain up-to-date and comprehensive license registers (Requirement 2.3). Requirement 2.3(b) lists the information that must be included. Requirement 2.3(c) notes that “where [this] information … is already publicly available, it is sufficient to include a reference or link in the EITI Report”. The detailed requirements are set out in full below. This note provides guidance to multi-stakeholder groups on how to address these issues as part of the EITI implementation process. Some EITI implementing countries, like Mongolia and Togo, already include disclosure of all extractive industries’ permits in their EITI Reports. In many implementing countries, this information is available from government agencies or online databases. These databases vary from simple Excel spreadsheets to sophisticated, online systems including a GIS interface for plotting the coordinates of the tenements, geological data, and other information regarding the licensing system.
Transcript of License registers - Extractive Industries Transparency … · Requirement 2.3. set out the...
Guidancenote3 June2016
ThisnotehasbeenissuedbytheEITIInternationalSecretariattoprovideguidancetoimplementingcountriesonmeetingtherequirementsintheEITIStandard.ReadersareadvisedtorefertotheEITIStandarddirectly,andtocontacttheInternationalSecretariattoseekfurtherclarification.Contactdetailscanbefoundatwww.eiti.org.
Website www.eit i .org Email secretariat@eit i .org Telephone +47 22 20 08 00 Fax +47 22 83 08 02 1 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway
LicenseregistersGuidancenote3–Requirement2.3
Summary
Themajorityofresourcerichcountrieshaveregistrydatabasestohelpthemmanagetheirextractiveindustrylicensingsystems.Publicationoflicenseregistersandrelatedinformationonextractiverightsenablecitizenstoseewhichcompanieshavebeenawardedrightstoexploittheirnaturalresources.Keepinganaccurateregistrysystemisalsoessentialtoencourageinvestment,tooptimisethesector’scontributiontothecountry,toclarifypropertyrights,andtoavoidconflictsovertheownershipandlocationoftenements.TheEITIrequiresthatimplementingcountriesmaintainup-to-dateandcomprehensivelicenseregisters(Requirement2.3).Requirement2.3(b)liststheinformationthatmustbeincluded.Requirement2.3(c)notesthat“where[this]information…isalreadypubliclyavailable,itissufficienttoincludeareferenceorlinkintheEITIReport”.Thedetailedrequirementsaresetoutinfullbelow.Thisnoteprovidesguidancetomulti-stakeholdergroupsonhowtoaddresstheseissuesaspartoftheEITIimplementationprocess.SomeEITIimplementingcountries,likeMongoliaandTogo,alreadyincludedisclosureofallextractiveindustries’permitsintheirEITIReports.Inmanyimplementingcountries,thisinformationisavailablefromgovernmentagenciesoronlinedatabases.ThesedatabasesvaryfromsimpleExcelspreadsheetstosophisticated,onlinesystemsincludingaGISinterfaceforplottingthecoordinatesofthetenements,geologicaldata,andotherinformationregardingthelicensingsystem.
Guidancenote3 June2016
Website www.eit i .org Email secretariat@eit i .org Telephone +47 22 20 08 00 Fax +47 22 83 08 02 2 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway
Requirement2.3.setouttherequirementsforlicenseregisters:
2.3 Registeroflicenses
a) Thetermlicenseinthiscontextreferstoanylicense,lease,title,permit,contractorconcessionbywhichthegovernmentconfersonacompany(ies)orindividual(s)rightstoexploreorexploitoil,gasand/ormineralresources.
b) Implementingcountriesarerequiredtomaintainapubliclyavailableregisterorcadastresystem(s)withthefollowingtimelyandcomprehensiveinformationregardingeachofthelicensespertainingtocompaniescoveredintheEITIReport:
i. Licenseholder(s).ii. Wherecollated,coordinatesofthelicensearea.Wherecoordinatesarenotcollated,thegovernmentis
requiredtoensurethatthesizeandlocationofthelicenseareaaredisclosedinthelicenseregisterandthatthecoordinatesarepubliclyavailablefromtherelevantgovernmentagencywithoutunreasonablefeesandrestrictions.TheEITIReportshouldincludeguidanceonhowtoaccessthecoordinatesandthecost,ifany,ofaccessingthedata.TheEITIReportshouldalsodocumentplansandtimelinesformakingthisinformationfreelyandelectronicallyavailablethroughthelicenseregister.
iii.Dateofapplication,dateofawardanddurationofthelicense.iv. Inthecaseofproductionlicenses,thecommoditybeingproduced.
Itisexpectedthatthelicenseregisterorcadastreincludesinformationaboutlicensesheldbyallentities,includingcompaniesandindividualsorgroupsthatarenotincludedintheEITIReport,i.e.wheretheirpaymentsfallbelowtheagreedmaterialitythreshold.Wheretherearesignificantlegalorpracticalbarrierspreventingsuchcomprehensivedisclosure,thisshouldbedocumentedandexplainedintheEITIReport,includinganaccountofgovernmentplansforseekingtoovercomesuchbarriersandtheanticipatedtimescaleforachievingthem.
c) Wheretheinformationsetoutin2.3(b)isalreadypubliclyavailable,itissufficienttoincludeareferenceorlinkintheEITIReport.Wheresuchregistersorcadastresdonotexistorareincomplete,theEITIReportshoulddiscloseanygapsinthepubliclyavailableinformationanddocumenteffortstostrengthenthesesystems.Intheinterim,theEITIReportitselfshouldincludetheinformationsetoutin2.3(b)above.Source:EITIStandard2016,p.18-19
Guidancenote3 June2016
Website www.eit i .org Email secretariat@eit i .org Telephone +47 22 20 08 00 Fax +47 22 83 08 02 3 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway
Guidance
TheEITIInternationalSecretariatrecommendsthefollowingstep-by-stepapproachtoMSGsforaddressingRequirement2.3:
1. Understandingthelicensingsystem.InaccordancewithRequirement2.3(b),implementingcountriesarerequiredtomaintainapubliclyavailableregisterorcadastresystem.Themulti-stakeholdergroupisadvisedtoapproachthisrequirementbyfirstreviewingandgaininganunderstandingofthecurrentlyavailableinformationaboutthelicensingsystem.
Guidingquestions:
• Areoil,gasandmineralrightsaddressedintheConstitution,placingownershipofnaturalresourceswiththenationanditspeople,and/orinsectorspecificlegislation?
• Whichagenciesareauthorisedtogranthydrocarbonandmineralrightsorlicenses?• AretheseagenciescurrentlyengagedintheEITIprocess?• Isthereapubliclyavailableregister/cadastresystem?
(NB:Theremaybemorethanonesystem,e.g.systemsatnational,regionalandlocallevelsand,ifso,isthereacleardelineationofcompetencesbetweenthemandifnothowdisputesaretypicallyresolved)
• Howoftenistheregister(s)updated,andwhoundertakesthiswork?• Arethereanyreformsunderwaytothecurrentlicensingsystem/s?
2. Assessingthecompletenessoftheinformationaboutlicenses.Itisexpectedthattheregisteror
cadastreincludeinformationaboutalllicensesapplicabletotheextractivesector(Requirement2.3(b)).Wheretherearesignificantlegalorpracticalbarrierspreventingsuchcomprehensivedisclosure,thisshouldbedocumentedandexplainedintheEITIReport,includinganaccountofgovernmentplansforseekingtoovercomesuchbarriersandtheanticipatedtimescaleforachievingthem(Requirement2.3(b)).Themulti-stakeholdergroupisthereforeadvisedtoanalysethecompletenessoftheavailableinformation,forexamplebyassessingwhether:
a) Thelicenseregistryiscompleteanduptodate,i.e.doesitcoverallactiveextractiveindustrylicenses?Ifnot:
o DoesitincludethelicensesheldbythecompaniescoveredintheEITIReport?Ifnotwhatpercentageoflicencesarecovered?
o What,ifany,legalandpracticalbarriersexistthatmaypreventdisclosureofinformationaboutallextractiveindustrylicenses?
o Whattypeofsystemcurrentlyexistsi.e.manualorcomputerbased?o Isthesystemuptodatei.e.howaccuratelydoesitreflectcurrentlicenceownership?
Isthereameanstoaccesschangesinlicenceownershipnotrecordedintheregister?o Aretherereformsunderwayseekingtoaddressthecomprehensivenessofthelicense
cadastre,andifsowhataretheanticipatedtimeframes?
b) ThelicenseregistrycontainsthenecessaryinformationasperRequirement2.3(b):o Whoarethelicenseholder(s)?
Guidancenote3 June2016
Website www.eit i .org Email secretariat@eit i .org Telephone +47 22 20 08 00 Fax +47 22 83 08 02 4 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway
o Whatarethecoordinatesofthelicensearea?Note:ExperiencewithimplementationhasshownthatlicensecoordinatesarenotalwayscollatedinonlineregistersorexceltablesthatcaneasilybesubmittedalongsidetheEITIReport.Wherecoordinatesarenotcollated,thegovernmentisrequiredtoensurethatthesizeandlocationofthelicenseareaaredisclosedinthelicenseregisterandthatthecoordinatesarepubliclyavailablefromtherelevantgovernmentagencywithoutunreasonablefeesandrestrictions.TheEITIReportshouldincludeguidanceonhowtoaccessthecoordinatesandthecost,ifany,ofaccessingthedata.TheEITIReportshouldalsodocumentplansandtimelinesformakingthisinformationfreelyandelectronicallyavailablethroughthelicenseregister.
o What is the duration of the license (date of application, date of award anddurationofthelicense)?
o Inthecaseofproductionlicenses,whichcommodityisbeingproduced?
3. Ensuringthattheinformationispubliclyavailable.Basedontheaboveanalysis,themulti-stakeholdergroupisadvisedtoagreehowtoincludethisinformationintheEITIReport.Requirement2.3(c)notesthat“wheretheinformationsetoutin2.3(b)aboveisalreadypubliclyavailable,itissufficienttoincludeareferenceorlinkintheEITIReport.Wheresuchregistersorcadastresdonotexistorareincomplete,theEITIReportshoulddiscloseanygapsinthepubliclyavailableinformationanddocumenteffortstostrengthenthesesystems.Intheinterim,theEITIReportitselfshouldincludetheinformationsetoutin2.3(b)above”.Thus,themulti-stakeholdergroupisadvisedtoconsider:
• IncorporatingashortsummaryoftheaboveassessmentintheEITIReport,includinganoverviewoflicensingactivityintheperiodcoveredbytheEITIReport.
• Wherethelicenseinformationistimely,comprehensiveandpubliclyavailableonline,providingalinktothelicenseregistryintheEITIReport.
• Wherethereareweaknessesintheinformationthatisavailable,includingatableintheEITIReportorontheEITIwebsitewiththerequiredinformation.
Note:ItistypicallybeyondthescopeoftheMSGtobecomeaproxylicenceregistrywherecountrysystemsareincompleteorinaccurate.TheMSGmaywishconsiderhowtheiractionscanidentifygapsorweaknessesincountrylicencingsystemsandencouragepracticalandlongtermsolutionstomakingaccurateuptodatelicencinginformationpubliclyavailable.TheMSGmayalsowishtomakerecommendationsforimprovingsectorgovernance,andmonitorprogressthroughEITIReportingandannualprogressreports.
Guidancenote3 June2016
Website www.eit i .org Email secretariat@eit i .org Telephone +47 22 20 08 00 Fax +47 22 83 08 02 5 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway
Examples
Norway’sPetroleumRegisterismaintainedbytheNorwegianPetroleumDirectorate.DataisenteredinthePetroleumregisteronanon-goingbasis,andiscopieddailytotheonlineFactPages.
Source:NorwegianPetroleumDirectorate,http://factpages.npd.no/factpages/default.aspx
Guidancenote3 June2016
Website www.eit i .org Email secretariat@eit i .org Telephone +47 22 20 08 00 Fax +47 22 83 08 02 6 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway
TheTanzaniaMinistryofEnergyandMineralsistogetherwithSpatialDimensiondevelopinganonlinecadastre.
Source:TanzaniaMinistryofEnergyandMineralsandSpatialDimensionPtyLtd-SD,http://www.flexicadastre.com/tanzania/
Togo’sEITIreportsincludeanoverviewofalllicensesheldbythecompaniescoveredintheEITIReport,includinginformationsuchasthecommoditybeingexploredand/orproduced,licensereferencenumbers,andthedurationofthelicense.
Source:Togo2011EITIReport,http://www.itietogo.org/
