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Act on Danish subsoil exploitation (No. 1533 of 2019).

Country
Type of law
Legislation
Date of original text
Source

Abstract
This Act sets rules on the appropriate exploitation of the Danish underground and its natural resources in adherence to EU regulations. It applies to Danish EEZ and on the Danish continental shelf area and particularly to the planning of extraction of raw materials of the subsoil which has not been subject to economic exploitation in Denmark prior to 23 February 1932, to the exploitation of underground storage or for any purpose other than extraction of raw materials, and to scientific studies of the subsurface. The Minister of Climate and Energy shall grant permission for a period of max. 3 years to studies for the exploration and production of commodities covered in this Act and/or the exploitation of underground storage or purpose other than recovery. Expropriation activities are subject to licence and companies involved in this sector business shall pay a governmental fee thereof in addition to a tax calculated on the basis of area size covered by the permit (land tax) and a tax calculated on the amount of extracted raw materials (production tax); there may be conditions on the payment to pay the government a share of these activities economic revenues. Permit of research and exploration of hydrocarbons shall be notified after the Minister of Climate and Energy decides methods thereof. Permission granted shall be based on two criteria: a) expertise and financial background and b) the research applicants must notify method planned to perform in specific area. Successfully granted permits shall then be given a commencement date when to begin such extraction activities. The Minister of Climate and Energy shall decide on state-owned companies to have the purchase right of max. 50% of a licensee's current production of liquid hydrocarbons. Permits for exploration and production of geothermal energy shall be notified after the public call for applications through gazette. The subsoil suitability for geological storage of CO2, which criteria is determined on the basis of the characterization and assessment of the potential storage and surrounding area, shall be governed by the Minister of Climate and Energy criteria decisions.
This Act consists of 10 Chapters: General Provisions (1); Prospecting (2); Exploration and extraction of raw materials (3); Special provisions on the exploration and production of hydrocarbons (4); Special provisions on exploration and production of geothermal energy (4a); State purchase right of liquid hydrocarbons (5); Other exploitations (6); Special provisions for geological storage and pipeline transport of CO2 (6a); Scientific studies (7); Requirements for technical and financial capacity, designation and approval of operators, insurance, provision of security and division of permits, etc. (7a); Supervision (8); Other provisions (9); Penalty and entry into force provisions (10).
Date of consolidation/reprint
Notes
This Act does not apply to Greenland nor the Faroe Islands.Consolidated version of the Act on Danish subsoil exploitation No. 293 of 1981.
Repealed
No
Source language

English

Legislation Amendment
No
Original title
Bekendtg relse af lov om anvendelse af Danmarks undergrund.