Law No. 12 of 1968 regulating the natural resources affairs

Article (1) This Law shall be called (The Organization of Natural Resources Affairs Law for the year 1968 ) and shall be become effective from the date of its promulgation in the Official Gazette.

Article (2) The following words and expressions wherever stated in this Law, shall have the meanings assigned to them here below, unless the context indicates otherwise: 1- "Kingdom" means the Hashemite Kingdom of Jordan. 2- "Government" means the Government of the Hashemite Kingdom of Jordan. 3- "Natural Resources" means all inanimate resources of natural wealth whether metallic or non-metallic, existing on the surface of, or under, the ground or in the territorial or inland waters or rivers. It shall also mean all surface and underground water resources, including rivers, streams, wadis, lakes, reservoirs, pools, water springs, rainfalls and natural vapours, as well as all minerals and pertinent ores, precious stones and similar others; and also soil, rock materials and their by-products used in constructional and paving works, including stones used for decoration purposes. 4- "Authority" means the Natural Resources Authority established in accordance with this Law. 5- "Board or Board of Directors" means the Board of Directors of the Natural Resources Authority. *6- "Minister" means the Minister of Energy and Mineral Resources. * As ammended by article (2) of the Law No. 12 of 1985. 7- "Individual" means any Jordanian individual who has reached his majority and is legally qualified. It shall also mean any commercial house, company, society, union, corporation, village, municipality, government administration, or organization with legal entity. * 23- "Prospecting" means any investigation, aerial survey, or ground survey in any area determined with the approval of the President with a view to ascertain the existence of minerals or rocky materials therein. Prospecting also includes consultation as well as economic, technical and geological surveys. 24 - "Exploration" means any work relating to investigation and exploration of minerals and rock materials for the purpose of ascertaining their existence and determining their quantities and qualities including drilling, excavation, assaying and necessary detailed examination. 25 - "Discovery" means the announcement of the existence of a mineral or minerals in exploitable quantities, to be submitted to the Vice President by the discoverer, at a site located on the set technical maps after obtaining permits from the concerned authority for exploring or prospecting for minerals. 26 - "Mine" means any locality where underground mirunq operations take place for the purpose of extracting natural ores. 27 - "Quarry" means any locality where mining operations take place for the purpose of extracting rocks or associated materials. 28 - "Minerals" means all ores of economic value excludinq petroleum, natural gas, rock materials or associates used in building construction, road construction or for ornamental purposes such as granite and marble. * Clauses 8 to 22 from Article (2) are deleted, because they are related to water 29 - "Mining Operations or Mining Facilities" means any work necessary for the extraction or exploration of rock minerals or associated materials or any relative action. This includes drilling, pitting, driving of tunnels, construction of water canals, reservoirs, dams, main sewage outlets and tanks, in addition to the construction of railways, laying pipe-lines, installation of machinery and construction of buildings whether for mining operations or housing of employees, as well as for the exploitation, dressing and marketing of minerals. * 31 - "Holder of Exploration Permit, Prospecting License or Certificate of Discovery or Mining Right" means the person who is granted the permit, license, certificate or right, whether in full or in part by inheritance, assignment, abdication or any other way.

Article (3) An Authority called the "Natural Resources Authority" shall be established in accordance with this Law and shall be entrusted with the responsibility of prospecting, geological and economic studies needed for the natural resources, supervising technically the methods of mining, and exploiting such in accordance with the provisions of this Law.

Article (4) The Authority shall be considered and autonomous body corporate. lt may lease, purchase and acquire movable and immovable properties, may conclude contracts and sue legal cases and lodge them in its name. In connection with any litigation in which the Authority is involved or for any other purposes, it may delegate one of the staff of the Attorney General or assign its own attorney from the Authority staff or from outside.

** Article (5) The Authority shall be attached to the Minister and the Minister shall be its President. * Clauses 30, 32 to 36 are deleted from Article (2) of the Law, because they are related to water ** As amended by Article (4) of the Law No. (30) of 1985.

Article (6) The Authority, in its capacity as an independent government agency established to act for and on behalf of the Government of Jordan and according to this Law, shall have the right to avail itself of all grants, revenues, loans, credits and any other local financial means that may become available for performing its works and projects. The Authority shall also have the right to contract debts through mortgage, sale of financial bonds or any other means which may become available from the anticipated revenues for executing any of its projects.

Article (7) The Authority may operate and maintain all its supplies, equipment and vehicles at its own workshops and may utilize the services of public and government agencies.

* Article (8) The Board of Directors shall be entrusted with the following responsibilities: 1- Laying out the general policy of the Authority. 2- Recommending to get internal and external loans with the Cabinet's approval. 3- Using experts, advisors and agents. 4- Preparing the Authority's annual budget. 5- Signing contracts and agreements with others and delegating such to representatives. 6- Preparing the Laws and Regulation pertaining to the Authority.

** Article (9) a- The Authority Board of Directors shall be Composed of the Minister as Chairman and the membership of : 1- Under-Secretary of the Ministry of Energy and Mineral Resources. 2- Director General. 3- Representative from the Ministry of Economy and Trade. 4- Representative from the Ministry of Public Works. 5- Representative from the Ministry of Planning. 6- Three persons appointed by the Council of Ministers for two years renewable upon the recommendation of the Minister. b - The Board selects a Vice-Chairman from its members. * As amended by Article (5) of the Law No. (30) of 1985. ** As amended by Article (6) of the Law No. (30) of 1985.

Article (10) a - The Board shall meet upon a written invitation from the President of the Authority or his Deputy or at a written request submitted by four members of the Board to the Chairman stating therein the reasons for holding the meeting. b- At least five of the members must be present at a meeting to establish a quorum, and decisions shall be taken by a majority of votes of not less than five of the members present. c- The Board shall meet under the chairmanship of the President and in case of his absence his Vice President presides over and if both are absent, the Board elects a temporary chairman for the session. d- The Board may, if it deems appropriate, request experts, consultants, officials or supervisors to attend its meetings for seeking their advice without having the right to vote.

* Article (11) a - The remuneration of the Board of Directors shall be decided by a resolution from the Council of Ministers according to a recommendation by the Minister and shall not exceed the limit mentioned in the civil service regulation in effect. b- No member of the Board of Directors or official of the Authority is entitled to make profit from any of the Authority's projects or any project or source related to it, or work in these projects or benefit from them in any other way except what he earns as salaries or remunerations within the limits specified explicitly in this Law or any regulations issued accordingly.

Article (12) a- The Council of Ministers, on the recommendation of the Board of Directors, shall appoint a Director General to the Authority provided that he should be an engineer who graduated from an accredited college and should have the qualifications and experience which the Council of Ministers would deem necessary. The Council of Ministers determines the salary and terms of employment of the Director General as recommended by the Board of Directors. * As amended by Article (7) of the Law No. (30) of 1985. b- The Director General shall practice the authorities delegated to him by the President of the Authority for the purpose of organizing the Authority, managing its works and organizing its staff and offices, and without prejudice to the above mentioned functions, he shall practice the following authorities and carry our the following duties: 1- Preparation of the draft of the Authority annual budget for submitting to the Board at least four months before the beginning of the fiscal year. The Director General should include in the draft budget the funds which are to be allocated by the Government to the Authority and the fund anticipated from other sources such as grant, national and foreign loans. 2- Implementation of the Board's decisions. 3- Coordination of work in all projects of the Authority and maintenance of efficiency, cooperation and harmony between all departments, divisions and units of the Authority. 4- Keeping the records necessary for showing works, assets, liabilities, revenues and expenditures of the Authority as well as preparing the annual accounting statements and submitting to the Board. 5- Preparation of the reports which should be submitted by the Board of Directors to the council of Ministers in accordance with the previsions of this Law. 6- Management of the affairs of the officials, employees and laborers of the Authority. 7- Preparation of the drafts of the regulations necessary for the implementation of the provisions of this Law and submission to the Board.

Article (13) The Board, with the recommendation of the President, shall appoint assistants to the Director General, the directors of departments and chiefs of divisions of the Authority on condition that the directors of the technical departments should be specialized and it is preferable that they should have had experience in their field of specialization and have assumed its responsibilities. The Board shall determine the salary and terms of employment of each. Directors of departments and chiefs of divisions shall practice the authorities and carry out the duties assigned to them by the Vice President.

* Article (14) The Authority shall be responsible for: b- Establishing a policy for developing and exploiting rock and mineral resources in the Kingdom in cooperation with the concerned authorities and submitting this policy to the Council of Ministers for approval, g- Giving technical and advisory services as possible for mining purposes. These services include planing, specifications and methods of financing, maintenance and others. i-Taking necessary actions to establish mmmg projects which their budgets have been allocated in the Authority's budget or those which their financial capabilities have been founded in a way satisfactory to the Authority. j- Any responsibilities trusted to the Authority by the Council of Ministers.

Article (15) The Authority shall have its employees, and Law No. 34 of 1959 and its amendments shall be implemented on the classifies employees, also they shall be subject to the civil service Regulations No. 23 of 1966 and any other legislation replacing such , but for those who are not classified, the Authority shall have its own regulation which will be issued according to the provisions of this Law, the provisions of this regulation to organize how these employees to be appointed, their rights, degrees, termination, indemnification and all other administrative affairs, provided that the regulation will take in consideration as long as this is possible the employment conditions implemented in other governmental instrumentalities.

** Article (29) Nothing in this Law shall contradict or annual any existing agreement whether international or having an international trait existing before the issuance of this Law. * Clauses a, c, d, e, f , and h are deleted, because they are related to water. ** Articles 16 to 28 are deleted, because they are related to water.

Article (30) All minerals existing within the borders of the Hashemite Kingdom of Jordan, whether found on the surface, underground or in territorial waters, rivers and internal seas, shall be considered state domain. Hence the exploitation or transfer of or trade in minerals, is prohibited without the consent of the President in accordance with the provisions of laws and regulations in effect, and after obtaining the mining right in the area in which such mining is intended.

Article (31) Mining shall be deemed a public utility when interpreting any law or ordinance dealing with the expropriation of lands for public interest.

Article (32) The right of mining minerals within the boundaries of any land for which an exploration permit, prospecting license or mining rights was granted shall not cover what extends of these minerals or their veins or ramifications beyond such boundaries.

Article (33) a - No exploration permit, prospecting license or mining right may be granted for Governmental, Mulk or Waqf land unless approved by their owners. If the landowner or tenant does not permit exploration, prospecting or mining In his land, the President may, with the approval of the Council of Ministers, grant permission for the same if public interest so demands. If the landowner or tenant does not agree to sell or rent his land to the holder of an exploration permit , prospecting license or mining right against a price to be agreed upon between them, the Council of Ministers may decide giving him a fair compensation by the applicant for the price or rental of his land, or may decide its expropriation according to law. b - No Government official or employee, whether civil or military, may be granted, directly or indirectly, any exploration permit, prospecting license, certificate of discovery or mining right. c - No exploration permit, prospecting license or mining right given in accordance with this Law shall entitled the Holder to explore, prospect or mine within the following areas without the prior approval of the concerned authorities supervising them: 1- Antiquity sites or Holy places. 2- Forest Areas. 3- Railway lands. 4- Municipal areas. 5- Reservoirs, pipelines and sewage disposal areas.

Article (34) According to the provrsrons of this Law, the exploration and exploitation of minerals and rock materials shall be divided into the following stages: 1- Prospecting 2- Exploration 3- Discovery 4- Mining

Article (35) a - The President may grant an exploration permit or a prospecting license to any person submitting an application to him after payment of fees. The following area excluded: 1- Any person under 25 years of age. 2- Any person who has been convicted of an offense under this Law or has previously held any permit, license or right which has been forfeited by reason of a breach of the terms or conditions thereof; except with the consent of the Cabinet. 3- Any person who is unable to give satisfactory evidence that he has sufficient technical qualification in geology or mining engineering either personally or by employing specialists acceptable to the Authority and that he possesses sufficient funds to enable him carry out the required work properly and pay any compensation which he should pay upon assuming the powers conferred on him in the permit. b- Application for a permit to explore, or a license to prospect for, minerals should be submitted to the President for his approval on the form prescribed by the Authority, in compliance with Para (a) of this Article.

Article (36) Foreigners may not be given exploration permits, prospecting licenses or mining rights except according to special agreements the Authority Board concludes with them, on the approval of the Council of Ministers, in accordance with laws and regulations in force.

Article (37) Permits for exploring, licenses for prospecting for, or rights in exploiting, oil and natural gas may not be granted to applicants except according to special agreements the Authority Board concludes with them, on the approval of the Council of Ministers, in compliance with laws and regulations in force.

Article (38) Certificate of discovery of minerals. Anyone who carries out exploration according to a permit and discovers minerals in commercial quantities, and hence registers his discovery with the President, shall be issued a certificate of discovery according to the from prescribed by the Authority, and shall have priority right in mining for a period of two years from the date of this certificate.

Article (39) Any person who provides the Authority with information leading to the discovery of minerals in commercial quantities shall be given a financial reward in accordance with regulations to be established by the Authority with the approval of the Council of Ministers.

Article (40) The Authority as it deems appropriate and with the approval of the Council of Ministers, is entitled to issue from time to time the regulations necessary for determining the fees for exploration permits, prospecting licenses, certificates of discovery and mining rights, and other dues relative to mineral production.

Article (41) 1 - The holder of a prospecting license has the exclusive right to explore the area defined in his license. For accomplishing this he may carry out the following: a- Obtain access to the area concerned together with his agents and laborers in order to establish the existence or otherwise of minerals therein or for topographical or geographical survey of the area. b- Undertake such excavations as are necessary for prospecting purposes. c- Take mineral specimens or samples for analyses for other laboratory tests. d- Introduce and assemble any equipment required for prospecting purposes. e- Open such reads as are necessary for prospecting operations . 2- a- Construct and maintain houses and bUildings necessary for his own use and that of his agents and workmen. b- Storage of materials extracted subsequent to mining operations in places approved by the President or his Deputy. c- Laying water pipes, construction of drainage, pools and tanks, and establishment and maintenance of necessary transportation and communication means.

Article (42) 1 - The Authority with the approval of the Council of Ministers is entitled to issue a mining right to any person holding a certificate of discovery and who has applied for this right within the period of two years mentioned in Article (38) according to the following terms: a- The area of the field covered by the mining right should not exceed 24 square kilometers, and this field should be one unsegmented tract of rectangular boundaries. b- The duration of the mining right should not exceed thirty years. The holder of this right has priority to renew it under conditions deemed fit by the Authority with the approval of the Council of Ministers. c- The applicant should submit a topographical map of the field in which the mining right is applied for on a scale of 1/5000. d- The applicant should submit a geological map of the same field detailed on a scale of 1/5000. e- The applicant should submit accurate estimates on the reserve quantities of ores proved to exist in the area by detailed prospecting. f- Submit a report on the feasibility of the mineral intended to be exploited. g- The applicant should prove his technical and financial capabilities. 2- If the holder of a certificate of discovery fails to apply for the mining right within two years from the date of the certificate as per Para (1) of this Article, the President may give such mining right to any person who applies for it, provided that the holder of the certificate of discovery shall be rewarded under the provisions of Article (39) of this Law. a- If the owner of the mining right fails to comply with any of the conditions included in the right, the President shall notify him of his failure in writing and shall give him a reasonable period of time to comply. If he still fails to comply with the conditions within the specified period, the President with the approval of the Council of Ministers may cancel the mining right given to him. b- If a mining right is canceled, such cancellation shall be published in the Official Gazette and such publication shall be considered a decisive evidence for the cancellation. Then the President with the approval of the Council of Ministers shall have the exclusive right to dispose of the area covered by the mining right in any manner he deems necessary for public interest. c- In case of canceling any mining right, its owner has no right to transfer or move or dispose any of the assets of the mine or open cut or make any changes to its condition in particular what relates to the safety and maintenance of the work without the written permission of the President.

Article (43) Only with the prior approval of the Council of Ministers and the publication in the Official Gazette may the holder of a mining right assign, transfer or mortgage his right according to the established principles of the laws and regulations in force.

Article (44) The holder of an exploration license or mining right shall not appropriate or take water from any lake, river, source or flow of water or canal bordering or passing through licensed land nor change its course without the written permission of the President after obtaining the agreement of the owners (if any) . In case of their refusal, the provisions of Par (a) of Article (33) of this Law, shall be applied.

Article (45) 1 - The holder of a mining right shall submit to the President a detailed annual report during January of each year showing the following: a- Value of the tonnage extracted during the preceding year. b- Number of laborers and technical and administrative staff employed by him. c- Work plan and program for the coming year. 2- The holder of a mining right shall submit to the President once a year and within one month from the date of submission of the annual report, a copy of the financial report for the preceding financial year including the profit and loss account and detailed total cost per unit of production. The President has the right to delegate e of his officials to examine the registers and other books relating to the technical, administrative and financial aspects of the project. 3- a- The holder of a mining right shall submit to the President plans, drawings and sections which illustrate the work procedure from the technical aspect before starting to open any mine or open cut. b- If they concern a mining operation the plans shall particularly show the following: 1- General mine plan. 2- Mining method. 3- Method of roof support and nature of supports to be used. 4- Underground haulage and layout of roads. 5- Systems of mine ventilation (on a detailed board). 6- Tunnel widths, dimension of pillars and their methods of maintenance. 7- Type of machinery and equipment to be used underground. 8- Plans and vertical sections showing layout of major parts of the mine. 9- A special notice board for safety precaution and maintenance instructions required by the work in each part of the mine. They should be established in accordance with the provisions of this Law and the regulations issued accordingly.

Article (46) The President shall have the right to prohibit, in a notice issued by him and published in the Official Gazette, prospecting, exploration or mining in any area for a specified or unspecified period with the approval of the Council of Ministers.

Article (47) 1 - Any official or employee authorized by the President to exercise the powers vested with him by this Law, or delegated by him in accordance with the provisions of this Law for achieving its objectives, shall have the right to carry out the works stated herebelow at all suitable times during the day or night: a- To enter any place exploited or used for mining operations for examination or inspection. b- To examine and make necessary investigations into the conditions and ventilation of the mine and all matters relating to the safety and health of the persons employed therein. c- To inspect the explosive stores and issue instructions on how the explosives should be stored and used. d- To inspect and examine the external parts of the machinery used in the mine and the state of all operations and roads. e- To check books, accounts , maps and other documents dealing with the mining operations and take copies or outlines of them and all other transactions. f- To exercise all powers necessary for achieving the objects of this Law. 2- In case the official or employee mentioned in the previous Article finds a defect in the mine, open cut or quarry, he should give notice in writing to the owner, agent or manager of the mine stating the particulars of the defect and requiring the same to be remedied within an appropriate and reasonable period. If the owner, agent or manager of the mine refuses to comply with the notice and has not lodged an objection with the President within seven days from the date of the notice, the president shall have the right to impose on him a fine of not less than 50 dinars and not more than 200 dinars.

Article (48) a - If an accident occurs due to mining operations in a mine, open cut, quarry or around it, whether at the surface or underground, and causes death, physical injury or material damage, the owner, agent or manager of the mine shall notify the President in writing of the accident within 24 hours after the occurrence of same. b- In case any bodily injury of which notice is required to be sent in accordance with this Article results in the death of the person injured, the owner, agent or manager of the mine shall, within 24 hours after being informed of such death, notify the President accordingly. c- The President shall designate one of the officials , or employees of the Authority to make investigations into the accident and submit a detailed report on the same so that the President will take the necessary action.

Article (49) 1 - Any person may open quarries and transport rock materials after obtaining a license from the President, provided that he complies with the following: a- If the land out of which it is proposed to get stones is owned by another, the owner of the quarry shall obtain the approval of the landowner before starting his therein. b- If the area where it is proposed to open a quarry is of the areas excluded in accordance with Para (c) of

Article (33) of this Law or if it is a state domain, then the quarry owner should obtain approval of the concerned authorities before starting his work therein. c- The sites of the quarries shall be located by distinct marks or on a map, if possible, which should be attached to the application for a quarrying license. 2- Quarries are considered as a mining operation and are subject to control and inspection in the same way as mines and open cuts. The owner of every quarry must abide with respect to the precautionary measures contained in the provisions of this Law and the regulations issued accordingly.

Article (50) Any dispute arising between the Authority and the holder of an exploration permit, prospecting license, certificate of discovery or mining right, and not provided for in this Law, shall be settled by arbitration. The dispute shall be referred to a committee consisting of three arbitrators, one appointed by each of the two parties in dispute and the third by the Minister of Justice. Arbitration shall be made in accordance with the provisions of Arbitration Law in force. General Articles

Article (51) The Authority shall, with the approval of the Council of Ministers, avail itself of all national grants and loans and shall accept grants and obtain loans from foreign governments, international organizations, agencies and corporations in accordance with the laws and regulations in force.

Article (52) Authority funds shall be considered to be Government funds. The Authority shall collect its debts in accordance with the provisions of the Government Fund Collection Law in force. The Authority, for this purpose, shall exercise all powers delegated to the administrative governor and the Government fund collection committee provided for in the said law.

Article (53) a - The Board shall study the Authority's draft budget submitted by the President any may return this draft to him for making necessary modifications. Then the Board shall submit the budget, after approving it, to the Council of Ministers, at least two months before the beginning of the fiscal year to be included in the state General Budget. b- The Board shall carry over balance of credits set forth in a fiscal year to a succeeding year and shall continue spending from these balance on projects not completed by the end of the fiscal year. c- Spending from the Authority budget shall be made in compliance with a financial regulation to be issued in accordance with the provisions of this Law.

Article (54) a - A special cash box shall be established for the Authority, and all Authority cash shall be deposited therein. Money of the cash box shall be deposited in a special account or accounts at the bank or banks agreed upon by the Board. Money is drawn from this account or these accounts in the way specified in the financial regulations of the Authority and until such regulations are issued drawing is made as determined by the Board. b- The Authority shall have the right to invest its surplus funds and the Board shall determine, with the approval of the Council of Ministers, where and how such investment shall be made.

Article (55) Authority accounts shall be audited by the Audit Bureau.

Article (56) The Authority Board shall submit to the Council of Ministers the following reports and statements: a- A work Progress Report for the previous fiscal year and full expenditures during the respective year including administrative, planning, organizational and implemental expenses and similar others. b- A report on the projects accomplished wholly or partially, during the previous fiscal year with relative expenses. c- A report on the planning works and the projects covered by them during the previous fiscal year. d- A yearly report including the report of the national chartered accountants or of the Audit Bureau on the previous fiscal year together with the estimate of assets. e- Any other reports or statements required by the Council of Ministers,

Article (57) a - The Authority is authorized to enter into contracts respecting any of its works or to accomplish such works in any other manner it deems to be appropriate, b- The Authority may maintain, operate and otherwise manage any completed or partially completed project until such project is transferred to, and responsibility for maintenance and operation is fully assumed by the village or municipality or any other public body. The Authority shall not remove the control on any project until sufficient assurances are given that the project will be operated and maintained in a manner to insure maximum useful life of the project,

Article (58) a - The Authority may vest any Ministry or Government Department with the responsibility for executing any of its projects or parts thereof or execute its projects by Jordanian contractors or others. In case Authority's projects are executed should select them on free competition basis and in compliance with the regulations issued in accordance with the provisions of this Law, b- In case the sources financing the projects are not confined to the Jordanian Treasury , the Authority should carry out the project according to the agreement concluded between the Government and the financing authorities.

* Article (66) Penalties - any person who violates any of the provisions of this Law or the regulations issued accordingly shall be subject to imprisonment for a period not exceeding two years, or a fine of not less than five dinars and not more than five hundred dinars, or to both penalties,

Article (67) Cancellation of Laws and Regulations - all laws shall be canceled to the extent which they are inconsistent with the provisions of this Law including: * Articles 59 to 65 are deleted, because they are related to water and penalties on violators that enter lands, whether irrigated or not, and on destroyers of water and irrigation projects. 1- The East Ghor Canal Temporary Law No. 31 for the Year 1962. 2- The Organization of Water Affairs Law No. 51 for the Year 1956. 3- Mining Law No.8 for the Year 1964 . Any other amendments of the above laws, provided that the Regulations issued in accordance with the provisions of same shall remain in force until superseded by new Regulations to be issued under this Law.

Article (6~) The Council of Ministers, on the recommendation of the Authority, shall be entitled to issue the regulations it deems necessary for enforcing the provisions of this Law.

Article (69) Enforcement of the Law - The Prime Minister and the Ministers are responsible for enforcing the provisions of this Law. Issued in the Official Gazette No. 2076 dated 15/2/1968 Note: All provisions related to water and irrigation issues in this Law are deleted due to the provisions of : 1- The Law for the development of the Jordan Valley No. (18) of 1997 2- The Law of Water Authority NO. (34) of 1983 .