(2022.12.15-ны өдрийн орчуулга)                                               Unofficial translation

LAW OF MONGOLIA

January 29, 2021                  State Palace, Ulaanbaatar city

ON SUPPORTING OIL REFINERY

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this law is to regulate relations pertaining to the establishment of a state-owned Oil Refinery Plant in the territory of Altanshiree soum of Dornogovi province based on domestic raw materials /hereinafter referred to as "Oil Refinery"/ and the government's support for the construction of crude oil pipelines.

Article 2.Legislation on Supporting Oil Refinery

2.1.Legislation on supporting the oil refinery comprises of the Constitution of Mongolia, the Law on Petroleum, the Law on Petroleum Products, the Construction law, the Water law, the Law on Standardization, Technical Regulation and Accreditation of Conformity Assessment, this law and other legislative acts enacted in conformity with them.

2.2.If an international treaty, to which Mongolia is party, provides otherwise than this law, then the provision of such international treaty shall prevail.

Article 3.Scope of the Law

3.1.This law regulates relations pertaining to the creation of a legal environment for the establishment of oil refinery plant and the construction and commissioning of basic technological and supporting facilities for its crude oil pipelines, as well as the organization of activities, and the government's support for such construction.

3.2.Any relations pertaining to the Oil Refinery that are not regulated by this law shall be governed by other relevant laws.

3.3.The Government shall approve the detailed procedure for the government support to oil refineries that will regulate the relations stipulated in this law.

3.4.This law shall be in force until the Oil Refinery operates at its full capacity.

CHAPTER TWO

GOVERNMENT SUPPORT FOR OIL REFINERY

Article 4.Construction activities of oil refinery and crude oil pipelines, and their main technology and supporting facilities

4.1.The design of the oil refinery and crude oil pipelines and their main technology and supporting facilities may be developed in the language of the contract, and any relations pertaining to verification, construction works, supervision on work stages, quality and safety analysis, commissioning and certification shall be regulated by the procedure specified in Article 3.3 of this law.

4.2.The international norms, rules, and standards may be used in the language of the contract for the design, verification and construction of oil refineries and crude oil pipelines and their main technology and supporting facilities.

4.3.Any registration and application of international norms, rules, and standards specified in Article 4.2 of this law in the language of the contract shall be governed by the procedure specified in Article 3.3 of this law.

4.4.The international norms, rules, and standards required for the operation of oil refineries and crude oil pipelines shall be translated into the Mongolian language and be registered and in effect in accordance with Article of 25.3.2 of the Law on Standardization, Technical Regulation and Accreditation of Conformity Assessment.

4.5.The issue on construction permits for oil refineries and crude oil pipelines and their main technology and supporting facilities shall be regulated by the procedure specified in Article 3.3 of this Law based on Article 32.1.5 of the Construction Law.

Article 5.Oil Exploration and Exploitation Operation of Oil Refinery

5.1.The oil refinery may carry out oil exploration and exploitation activities in order to ensure a stable supply of raw materials.

5.2.The government shall solve an issue on priority for allocation of areas for oil exploration and exploitation activities as specified in Article 5.1 of this law.

5.3.Oil exploration and exploitation activities may be carried out jointly with foreign and domestic business entities, and contracts shall be concluded based on the decision of the Government specified in Article 5.2 of this law.

5.4.The state central administrative body in charge of oil issues shall transfer the preliminary and processed reports, materials and information of previous exploration, geological, geophysical, hydrogeological, geochemistry and drilling works to the Oil Refinery free of charge that were carried out within the area granted in accordance with Article 5.2 of this law.

5.5.The state central administrative body in charge of oil issues shall grant a license for oil exploration and exploitation to the Oil Refinery based on Article 5.2 of this law.

5.6.Any activities related to oil exploration and exploitation conducted within the areas granted by the government to oil refinery shall be regulated in accordance with the procedure specified in Article 3.3 of this law.

Article 6.Other Supports

6.1.The government will provide the following supports to oil refineries:

6.1.1.to regulate the relations pertaining to hiring labor force and experts from abroad in the construction according to the procedure specified in Article 3.3 of this law;

6.1.2.to exempt the Oil Refinery from the payment of expenses for prospecting, exploration and research of underground water resources determined by state budget funds;

6.1.3.to regulate the transportation of machinery, equipment, accessories, raw materials, and inventory or goods necessary for construction in accordance with the procedure specified in Article 3.3 of this law;

6.1.4.to regulate the safety and security of oil refineries and crude oil pipelines in accordance with the procedures specified in Article 3.3 of this law;

6.1.5.to ensure expedited customs clearance in accordance with the Customs law when entering machinery, equipment, accessories, raw materials, and inventory or goods required for construction through the customs border;

6.1.6.to provide support from the local management for the construction of oil refineries and crude oil pipelines, oil exploration and exploitation activities;

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA G.ZANDANSHATAR