ENERGY POLICY : SHALE GAS: WARSAW PICKS UP PACE.
The new law on shale gas operations in Poland is meant to be very investor-friendly
Prime Minister Donald Tusk applauded his government's effective lobbying in Brussels, with support from the UK government, to keep the EU from adopting "excessive rules and regulations" on shale gas operations in Europe. Poland's new geological and mining law, adopted on 11 March by the Council of Ministers, aims to "drastically speed up research and exploitation operations" in the country. "We adopted solutions that should give serious incentives to those interested in shale gas operations in Poland," Tusk told the press.
The legislative package, which includes a strong tax incentive, seems to be tailor-made to please investors. There will be no taxation at all on shale gas operations until 2020. After that date, total taxation is not expected to exceed 40% of investors' gross earnings. According to Tusk, the administrative procedures for awarding concessions will be "drastically simplified". A single concession system will be put in place, compared with three at present (prospection, exploration and extraction). Lastly, no new oversight authority will be established. This subject was a major source of disagreement between industry and government. Existing oversight bodies will nonetheless be reinforced. The new measures will be presented to parliament within two weeks. If the legislative process can be concluded swiftly, implementation may be effective in six months.
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|Comment:||ENERGY POLICY : SHALE GAS: WARSAW PICKS UP PACE.|
|Date:||Mar 26, 2014|
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