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/