CASE COMMENTS : STATE AIDS - MINING SECTOR – FEES – SELECTIVE NATURE – COMBINATION OF AN AGREEMENT WITH A LAW

Mining industry : The General Court of the European Union considers that an agreement concluded between the State and an operator, which protects the latter against an increase of mining fees in connection with the extraction of hydrocarbons, is not always selective (MOL)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. In 2005, the Hungarian authorities and MOL, an oil and gas company, signed an agreement to extend the latter's mining rights for 12 hydrocarbon deposits for which it had an operating licence but had not started production. Under the agreement, MOL was to pay a mining royalty applicable to all its deposits for the entire duration of the agreement (i.e. 15 years), the rate of the royalty being determined solely by the provisions of the agreement. The rate of this royalty was higher than the statutory royalty applicable under Hungarian law at the time. In 2007, Hungary decided to significantly increase the mining royalty rate. However, the new law did not

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  • European Commission - Legal Service (Brussels)

Quotation

Bruno Stromsky, Mining industry : The General Court of the European Union considers that an agreement concluded between the State and an operator, which protects the latter against an increase of mining fees in connection with the extraction of hydrocarbons, is not always selective (MOL), 12 November 2013, Concurrences N° 1-2014, Art. N° 63494, pp. 166-167

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