Regulations on Administration of Geological Exploration Qualifications

Order of the State Council [2008] No.520

March 3, 2008

The Regulations on Administration of Geological Exploration Qualifications are hereby promulgated and shall be effective as of July 1, 2008.

Premier, WenJiabao

Appendix:Regulationson Administration of Geological Exploration Qualifications

Chapter I General Provisions

Article 1 These Regulations are formulated for the purpose of enhancing the administration of geological exploration activities, safeguarding the order of the geological exploration market, ensuring the quality of geological exploration and promoting the development of the geological exploration industry.

Article 2 Any unit that intends to conduct geological exploration shall obtain a qualification certificate for geological explorationin accordance with the provisions of these Regulations.

Article 3 The competent land and resources department of the State Council and the competent land and resourcesdepartments of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall, in accordance with the provisions of these Regulations, be responsiblefor examining the qualifications for geological exploration, granting approval,issuing qualification certificates and exercising supervision and administration in this respect.
The competent land and resources departments of the people's governments of cities and counties shall,in accordance with the provisions of these Regulations, be responsible for exercising supervision and administration in respect of the qualifications for geological exploration within their respective administrative areas.

Article 4 Thegeological exploration qualificationsconsist of the qualifications for comprehensive geological explorationand the qualifications for specialized geological exploration.
The qualifications for comprehensive geological exploration include the qualifications for regional geological survey, for marine geological survey, for petroleum and natural gas mineral exploration, for liquid mineral exploration (excluding petroleum), for gas mineral exploration (excluding natural gas), for solid mineral exploration including coal,and for survey of hydrogeology, engineering geology and environmental geology.
The qualifications for specialized geological exploration include the qualifications for geophysicalexploration,for geochemical exploration,for airborne geological survey, for remote sensing geological survey, for geological drilling (tunneling) and for geological laboratory tests.

Article 5 The qualifications for regional geological survey, for marine geological survey, for petroleum and natural gas mineral exploration, for gas mineral exploration (excluding natural gas), for airborne geological survey, for remote sensing geological survey and for geological laboratory testsare classified into Class A and Class B; the qualifications for the other types of geological exploration are classified intoClass A, Class B and Class C.

Article 6 Allunitsand individuals have the right to report to the competent land and resourcesdepartments any geological exploration activities conducted in violation of the provisions of these Regulations.
The competent land and resources departments shall, upon receiving the reports, investigate and handle the casesin accordance with law, and keep thereporting persons confidential.

Chapter II Application and Acceptance

Article 7 A unit that applies forthe geological explorationqualifications shall meet the following basic conditions:
1.having the status as a legal person of an enterprise or institution;
2.having the qualified explorationalspecialists commensurate with thecategory and class of the geological exploration qualifications it applies for;
3. having the explorational equipment and instruments needed for the category and class of the geological exploration qualifications it applies for; and
4. having the quality control system and work safety management system needed for the category and class of the geological exploration qualifications it applies for.
The specific standards and conditions for the different categories and classes ofgeological exploration qualifications shall be established by the competent land and resourcesdepartment of the State Council.

Article 8 The following geological exploration qualifications shall be subject to examination and approval by the competent land and resourcesdepartment of the State Counciland the qualification certificates shall be issued by the said department:
1.the qualifications for marine geological survey, for petroleum and natural gas mineral exploration and for airborne geological survey; and
2. other geological exploration qualifications underClass A.
The geological exploration qualifications other than the ones specified in the first paragraph of this
Article shall be subject to examination and approval by the competent land and resources departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government, and the qualification certificates shall be issued by the said departments.

Article 9 A unit that applies for the geological exploration qualifications shall submit the following documents to the approval authority:
1. written application for geological exploration qualifications;
2. certification for its status asa legal person;
3. roster of the explorationalspecialists, their identitycertificates and qualification certificates, and the appointment documentsof the persons in charge of technology;
4. list of the explorational equipment and instruments and the necessary verification document; and
5. documents regarding the quality control system and the work safety management system.
The applicant shall be responsible for the authenticity of the documents for application.

Article 10 Applicationsfor geological exploration qualifications shall be accepted in accordance with the relevant provisions of the Administrative Permission Law of the People's Republic of China.

Chapter III Examination and Decision

Article 11 The approvalauthority shall complete examination of an application for geological exploration qualifications within 20 working days from the date it accepts the application.
The approvalauthority shall make known to the public the applicant that passes the examination, which shall last for a period of not less than 10 working days.If no objections are raised at the expiration of the period, the authority shall grant the application and issue the qualification certificate for geological exploration within 10 working days; otherwise, it shall, within 10 working days, notify the applicant that it submits materials for explanation.
Wherean applicant fails to pass the examination, the approval authority shall notify it of the fact in writing and explain the reasons.

Article 12 The approval authority shall,in a timely manner, publish the qualification certificates for geological exploration it issues and provide convenience for public consultation.

Article 13 A qualification certificate for geological exploration shall include the following items:
1. name and domicile of the unit and its legal representative;
2. category and class of the geological explorationqualifications;
3. term of validity; and
4. authority and date of issue and the number of the certificate.
The format of the qualification certificates for geological exploration shall be decidedon by the competent land and resourcesdepartment of the State Council.

Article 14 Where a geological exploration unit intends to alter its name or domicile or replace its legal representative, itshall, within 20 working days from the date it alters its industrial and commercial registration or its registration as an institution, approach the original approval authority for going through the formalities for the alterations to be made in its qualification certificate for geological exploration.
Where because of merging or separation or for other reasons, a geological exploration unit needs to alter the category or class of qualifications specified in its qualification certificate for geological exploration, it shall apply anew for the qualifications in accordance with the provisions of these Regulations.

Article 15 Where a geological exploration unit intends to terminate its geological exploration activities because of dissolution or for other reasons, it shall, within 10 working days from the date of termination, approach the original approval authority for going through the formalities for cancelingits qualificationcertificatefor geological exploration. If it fails to do so at the expiration of the period, the said authority shall cancelthe certificate.

Article 16 A unit that has obtained Class A geological exploration qualifications may conduct all geological exploration activities within the corresponding category of qualifications.
The scope of geological exploration activities to be conducted by the unitsthat have obtained Class B or Class C geological exploration qualifications shall be defined by the competent land and resourcesdepartment of the State Council.

Article 17 A qualification certificate for geological exploration shall be validfor a period of five years.
Where a geological exploration unit intends to continue its geological exploration activities when the period of validity of itsqualification certificate for geological exploration expires, it shall apply to the original approval authority forextension of the period three months before the period expires.
The approval authority shall decide whetheror notto grant the application for extension before the period of validity of the qualificationcertificatefor geological exploration expires; if it fails to do so at the expiration of the period, it shall be deemedto grant the application for extension.

Chapter IV Supervision and Administration

Article 18 The competent land and resources departments of the people's governments at or above the county level shall strengthen their supervision and inspection of geological exploration activities.
When conducting supervision or inspection, the competent land and resources departments of the people's governments at or above the county level may look through, or require the geological exploration units to provide, the documents regarding their geological exploration qualifications.
The geological exploration units shall truthfully provide the related documents and shall not reject or hinder supervision and inspection.

Article 19 When conducting supervision or inspection, the supervisors or inspectors shall produce their credentials, keep confidential the technological and business secrets of the unit under inspection and make a record of the supervision or inspection conducted and the problems discovered and handled, and the record shall be signed by way of confirmation by the supervisors or inspectors and the person in charge of the unit under inspection. If the person in charge of the said unit refuses to sign the record, the supervisors or inspectors shall put the fact on record.

Article 20 The approval authority shall establish a sound management system for the files on the performance of geological exploration units. Such files shall include the records of the work experiences of the units, of their achievements and professional credibility, of the inspection and assessment conducted, of the complaints from the public, of their illegal activities, etc.

Article 21 When through supervision or inspection, the approval authority finds that a geological exploration unit no longer meets the necessary conditions for the category or class of qualifications specified in its qualification certificate for geological exploration, it shall order the unit to rectify within a time limit.

Article 22 Under one of the following circumstances, the approval authority shall cancel the qualification certificate for geological exploration:
1. the certificate is issued by a staff member of the approval authority who abuses his power or neglects his duties;
2. the certificate is issued in excess of the statutory powers;
3. the certificate is issued in violation of the statutory procedures; or
4. the certificate is issued to an applicant that does not meet the conditions specified in these Regulations.

Article 23 If a geological exploration unit loses its qualification certificate for geological exploration, it shall make the fact known to the public nationwide, for a period of 30 days at least. It shall not approach the original approval authority for going through the formalities for reissue of such a certificate until the said period expires.

Article 24 A geological exploration unit shall not conduct geological exploration activities beyond the category or class of qualifications specified in its qualification certificate for geological exploration, or produce false reports on geological exploration.
A geological exploration unit shall not subcontract geological exploration projects it undertakes to another unit, and shall not allow another unit to conduct geological exploration in its name.
A geological exploration unit shall not conduct commissioned geological exploration of minerals before the commissioning party has obtained the exploration or mining license for mineral resources.
No unit or individual shall forge, alter or transfer the qualification certificate for geological exploration.

Chapter V Legal Liability

Article 25 Where the competent land and resources department of the people's government at or above the county level or one of its staff members violates the provisions of these Regulations under one of the following circumstances, the person in charge with competent accountability and other persons with competent accountability shall be given sanctions in accordance with law; if one of the said persons commits a crime, he shall be investigated for criminal liability in accordance with law:
1. issuing a qualification certificate for geological exploration to an applicant that does not meet the conditions specified in these Regulations, or issuing such a certificate in excess of the statutory powers;
2. refusing to issue a qualification certificate for geological exploration to an applicant that meets the conditions specified in these Regulations, or failing to issue such a certificate within the statutory time limit;
3. failing to investigate and punish the violations of the provisions of these Regulations when discovered, or failing to handle a case in accordance with law after receiving a report thereof; or
4. committing other illegal activities in examining the qualifications for geological exploration, granting approval or issuing the qualification certificates or in exercising supervision and administration.

Article 26 Where in the process of application for qualifications, a geological exploration unitconceals the truth or provides false documents, the approval authority shall reject its application or refuse to issue to it a qualification certificate for geological exploration, and shall give it a warning.
Where a geological exploration unit has obtained a qualification certificate for geological exploration by fraud, bribery or otherillegitimate means, the original approval authority shall revoke its certificate and shall fine it not less than CNY20,000 but not more than CNY100,000; if a crime is committed, criminal liability shall be investigated for in accordance with law.

Article 27 Where a unit or individual conducts geological exploration without a qualification certificate for geological exploration, or a unit continues to conduct geological exploration when the period of validity of its certificate has expired and fails to go through the formalities for extension of the period as is required by the provisions of these Regulations, the competent land and resources department of the people's government at or above the county level shall order it or him to make corrections within a time limit and shall fine it or him not less than CNY50,000 but not more than CNY200,000; its or his illegal gains, if any, shall be confiscated.

Article 28 Where a geological exploration unit fails to go through the formalities for alterations to be made in its qualification certificate for geological exploration, as is required by the provisions of these Regulations, when it alters its name or domicile or replaces its legal representative, the original approval authority shall order it to make corrections within a time limit; if it fails to do so at the expiration of the time limit, its qualification certificate for geological exploration shall be suspended or rescinded.

Article 29 Where a geological exploration unit commits one of the following acts, the competent land and resources department of the people's government at or above the county level shall order it to make corrections within a time limit and shall fine it not less than CNY50,000 but not more than CNY200,000; its illegal gains, if any, shall be confiscated; if the unit fails to make corrections at the expiration of the time limit, the original approval authority shall rescind its qualification certificate for geological exploration:
1. failing to conduct geological exploration activities in compliance with the category or class of qualifications as specified in its qualification certificate for geological exploration;
2. providing a false report on geological exploration;
3. subcontracting the geological exploration project it undertakes to another unit;
4. allowing another unit to conduct geological exploration in its name; or
5. conducting commissioned geological exploration of minerals before the commissioning party has obtained the exploration or mining license for mineral resources.

Article 30 Where a geological exploration unit under supervision or inspection fails to truthfully provide the related documents, or rejects or hinders supervision or inspection, the competent land and resources department of the people's government at or above the county level shall order it to make corrections within a time limit; if the unit fails to do so at the expiration of the time limit, the original approval authority shall suspend or rescind its qualification certification for geological exploration.

Article 31 Where a geological exploration unit, which is ordered to rectify within a time limit, fails to do so at the expiration of the time limit or still fails to meet the necessary conditions for the category or class of qualifications specified in its qualification certificate for geological exploration after rectification, the original approval authority shall suspend or rescind its certificate.

Article 32 Where a unit or individual forges or alters a qualification certificate for geological exploration or transfers it to another one, the competent land and resources department of the people's government at or above the county level shall confiscate the forged or altered certificate, or the original approval authority shall rescind the transferred certificate, and the said department or authority shall fine the unit or individual not less than CNY50,000 but not more than CNY200,000; its or his illegal gains, if any, shall be confiscated; if the act constitutes a violation of administration of public security, the public security organ shall impose on the unit or individual a penalty for administration of public security in accordance with law; if a crime is committed, criminal liability shall be investigated for in accordance with law.

Article 33 A unit whose qualification certificate for geological exploration is rescinded in accordance with law due to violation of the provisions of these Regulations shall not apply again for the geological exploration qualifications within one year from the date when its certificate is rescinded.

Chapter VI Supplementary Provisions

Article 34 A unit that has obtained a qualification certificate for geological exploration in accordance with law before these Regulations become effective shall, 30 working days before the period of validity of its certificate expires, apply again for the geological exploration qualifications in accordance with the provisions of these Regulations. If it fails to make such application at the expiration of the time limit, it shall not continue to conduct geological exploration.

Article 35 The qualifications for surveying of construction projects shall be administered in accordance with the relevant provisions of the Regulations on Administration of Surveying and Designing of Construction Projects.

Article 36 These Regulations shall be effective as of July 1, 2008.

(Source:http://www.mlr.gov.cn/mlrenglish/)