Polish Control Chamber Audits Shale Gas Development
Poland's Supreme Audit Office is launching the examination of activities of the public administration and companies, concerning shale gas development.
NIK (Najwyzsza Izba Kontroli) announced, that the controling process would concern both administration and companies. The agency would check control and supervision, issues relating to exploration works, plans of development and fulfilling licence obligations by companies.
According to the press note, inspectors will meet experts of the Ministry of Environment, PGI (Polish Geological Institute), WUG (State Mining Authority), NFOSiGW (National Fund for Environmental Protection and Water Management) as well as the state controlled gas company PGNiG.
The results of the audit will be sent to the Parliament in the spring of 2013.
Preparations for the examination have taken over eight months. In January spokesman Pawel Biedziak informed the Natural Gas Europe, that the works on the plan of the examination had started, and that the check would concentrate on the licensing process and evaluation of “regulations concerning payments to state and local authorities.”
A few days later, the Internal Security Agency (ABW) detained seven persons, including the head of Concession Department at the Ministry for Environment, on charges of corruption in the process of granting shale gas exploration concessions.
From the 1 of January, the new Geology and Mining Law (PGiG) was introduced and the newly appointed Chief Geologist and the Deputy Minister of Environment - who oversees concessions granting process - warned, that first-come first-served principle would not be applied anymore.
Prior to 2012 exploration concessions were issued without a competitive bidding process. In the opinion of some critics, the national interest had not been properly served.
In July the Chief Geologist said, that the existing Geology and Mining Law did not guarantee means to maintain effective control over ownership of exploratory licenses.
NIK is the highest audit authority in the country, controlling management of public property by state and local governments.