REPUBLIC OF LITHUANIA LAW
ON STATE STOCKS OF PETROLEUM PRODUCTS AND OIL
25 June 2002 No IX-986
Vilnius
(As last amended on 25 June 2020 – No XIII-3141)
CHAPTER ONE
GENERAL PROVISIONS
Article 1. Objective and scope of the Law
1. The objective of this Law shall be to ensure the accumulation, management, use, monitoring, regulation of constitution of state stocks of petroleum products and oil as well as specific features of the management, use and disposal of stocks of petroleum products and oil belonging to the State by the right of ownership.
2. The provisions of this Law have been harmonised with the legal acts of the European Union listed in the Annex to this Law and with the provisions of the Agreement on an International Energy Programme of 18 November 1974.
Note in the Register of Legal Acts. Paragraph 2 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
Article 2. Definitions
1. ‘Reference year’ means the calendar year of the data on inland consumption or net import of petroleum products or oil used to calculate either the stocks of petroleum products or oil to be accumulated or the stocks of petroleum products or oil actually accumulated.
2. ‘Obligated enterprises’ means petroleum refineries, enterprises importing and bringing in petroleum products and/or oil, with the exception of the public institution Lithuanian Energy Agency (hereinafter: ‘the Agency’), which, pursuant to the provisions of this Law, accumulate and manage stocks of petroleum products and oil and which refine or produce, import or bring in petroleum products and oil in quantities exceeding 100 tonnes per year. The specified quantities shall be calculated by summing up the quantities of petroleum products and oil refined or produced, imported or brought in per year by the obligated enterprises and the enterprises of the persons related with them as defined in the Law of the Republic of Lithuania on Value Added Tax.
3. ‘Commercial stocks of petroleum products and oil’ (hereinafter: ‘commercial stocks’) means those stocks of petroleum products and oil accumulated and managed by obligated enterprises which are not a requirement under this Law.
4. ‘Petroleum refinery’ means an enterprise registered in the Republic of Lithuania or a branch of a foreign enterprise which produces petroleum products for inland consumption by refining raw materials belonging to it by the right of ownership or in any other manner. These enterprises shall also comprise enterprises which make use of the service of production of petroleum products and sell the petroleum products for inland consumption.
5. ‘Enterprise importing petroleum products and/or oil’ means an enterprise registered in the Republic of Lithuania or a branch of a foreign enterprise which imports petroleum products and/or oil for inland consumption from the states or territories not covered by the customs territory of the European Union.
6. ‘Enterprise bringing in petroleum products and/or oil’ means an enterprise registered in the Republic of Lithuania or a branch of a foreign enterprise which brings in petroleum products and/or oil from another Member State for inland consumption.
7. ‘Stocks of petroleum products and oil’ (hereinafter: ‘stocks’) means stocks of the energy products listed in Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22 October 2008 on energy statistics, including specific stocks of petroleum products.
Note in the Register of Legal Acts. Paragraph 7 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
8. ‘Accumulation of stocks of petroleum products and oil’ (hereinafter: ‘stock accumulation’) means acquisition of stocks of petroleum products and oil and/or of the rights of claim in respect of petroleum products and oil in the course of fulfilment of the obligations set out by this Law.
9. ‘Use of stocks of petroleum products and oil’ (hereinafter: ‘use of stocks’)’ means the taking of stocks of petroleum products and oil for energy production or for other purposes and their sale in accordance with the procedure and restrictions laid down by this Law and other laws.
10. ‘Regulation of constitution of stocks of petroleum products and oil’ (hereinafter: ‘regulation of constitution of stocks’) means establishment of the nomenclature of stocks of petroleum products and oil, the amount of funds, the quantities of stocks, the time limits of their accumulation, and the conditions of stockholding.
11. ‘Management of stocks of petroleum products and oil’ (hereinafter: ‘stock management’) means the holding, accounting, replacement, writing-off of petroleum products and oil as well as other related actions necessary for implementation of provisions of this Law and other laws.
12. ‘Net import of petroleum products and oil’ (hereinafter: ‘net import’) means the total quantities of petroleum products and oil imported into the country for energy production and other purposes.
13. ‘Inland consumption of petroleum products and oil’ (hereinafter: ‘inland consumption’) means the total quantities of petroleum products and oil delivered within the country for energy production and other purposes. This aggregate shall include deliveries to the energy production sector and deliveries to industry, transport, households and other sectors for final consumption; it also shall include the own consumption of the energy sector, except refinery fuel.
14. ‘Specific stocks of petroleum products’ (hereinafter: ‘specific stocks’) means stocks of petroleum products accumulated by the Agency with state funds.
15. ‘Operator of a Member State’ means a Member State’s citizen or another natural person who benefits from the rights of movement within the Member States conferred upon him by European Union legal acts, or a legal person or another organisation established in a Member State, its divisions.
16. Other concepts contained in this Law shall be interpreted as they are defined in the Law of the Republic of Lithuania on Energy (hereinafter: ‘the Law on Energy').
CHAPTER TWO
OPERATORS IMPLEMENTING AND MONITORING ACCUMULATION OF STOCKS
Article 3. Operators implementing accumulation of stocks
1. The implementation and monitoring of accumulation of stocks shall be ensured by the Government of the Republic of Lithuania (hereinafter: the ‘Government’) and the Ministry of Energy of the Republic of Lithuania (hereinafter: the ‘Ministry of Energy’). Stocks shall be accumulated by the Agency and obligated enterprises in accordance with the procedure laid down by this Law.
2. The Government acting in accordance with, and adhering to the requirements of, this Law shall:
1) shape and implement state policy on accumulation of stocks;
2) approve the Rules governing the Regulation of Constitution, Management, Accumulation, Use and Monitoring of State Stocks of Petroleum Products and Oil (hereinafter: ‘the Rules’).
3. The Ministry of Energy acting in accordance with, and adhering to the requirements of, this Law shall:
1) organise, coordinate and monitor the implementation of accumulation of stocks;
2) analyse and assess the state of the import, bringing in, bringing out, export, trade, consumption of petroleum products and oil;
3) set up a state information system for stocks of petroleum products and oil (hereinafter: ‘the stocks information system’).
Article 4. Monitoring of accumulation and management of stocks
1. The National Energy Regulatory Council (hereinafter: ‘the Council’) shall, in accordance with the procedure laid down in the Rules, periodically inspect and monitor the accumulation and management of stocks by the Agency, obligated enterprises and other enterprises providing services related to accumulating and managing stocks as well as the compliance of stockholding locations and conditions with the requirements of legal acts. When performing the functions assigned to it by this Law, the Council shall have the right to carry out inspections, referred to in paragraph 2 of this Article, of the Agency, obligated enterprises and other enterprises providing services related to accumulating and managing stocks; the Council shall also enjoy other rights laid down by legal acts. If conditions to inspect stocks are not created within the time limit set by the Council or inspection of stocks is hindered otherwise, it shall be considered that the stocks have not been accumulated.
2. When carrying out inspections of the Agency, obligated enterprises and other enterprises providing services related to accumulating and managing stocks, the Council staff members shall be entitled, irrespective of the ownership of stocks, stockholding location or conditions, to enter the territory or premises of the Agency, obligated enterprises and other enterprises providing services related to accumulating and managing stocks and to verify the documents and data relating to the accumulation and management of stocks, the management and use of stocks, the technical condition of the terminals where the stocks are held and their suitability for stockholding. These inspections shall be recorded in an act, the form and filling-out procedure of which shall be determined by the Council. Representatives of other state institutions may take part in these inspections. The Council shall inform the Ministry of Energy about the results of these inspections.
3. The quality of stocks shall be controlled by the State Consumer Rights Protection Authority in accordance with the procedure laid down in the Rules.
4. Monitoring of accumulation and management of stocks held in other Member States shall be carried out in accordance with the procedure laid down by legal acts of these Member States.
Article 5. Agency
1. The Agency shall be the central organisation for the accumulation and management of petroleum products and oil stocks in the Republic of Lithuania which, acting in the general interest, performs the functions laid down by this Law.
2. In the conduct of its activities, the Agency shall, in accordance with the procedure laid down by this Law and its implementing legal acts:
1) accumulate and manage specific stocks as well as stocks that are accumulated and managed in accordance with the procedure laid down by this Law pursuant to agreements with obligated enterprises;
2) keep data and documentation relating to stocks;
3) publish, on an ongoing basis, full information, broken down by product category, on the stock volumes that the Agency can undertake to accumulate and manage for other economic operators, including the operators of other Member States; it shall also publish, at least seven months in advance, the conditions subject to which the Agency provides services related to accumulating and managing of stocks for other economic operators;
4) assist the European Commission in carrying out inspections of accumulation of stocks, provide the European Commission with the necessary information;
5) manage and administer the stocks information system, perform functions related to reporting on stocks.
3. The Agency shall, in accordance with the provisions of this Law, provide to economic operators services related to accumulating and managing stocks under objective, transparent and non-discriminatory conditions. The Ministry of Energy shall, in accordance with the procedure and within the time limits laid down in the Rules, calculate and approve the rates applied by the Agency to the service related to accumulating and managing stocks when it is provided by virtue of granting the rights of claim to the stocks accumulated by the Agency and managed by its right of property trust under a trust agreement as well as the rates applied by the Agency to the service related to accumulating and managing stocks when it is provided by virtue of acquiring the rights of claim to the stocks held by other operators. In any case, payments by the economic operators for the services of the Agency must not exceed the full costs of the services provided and shall not be required until the Agency accumulates the quantities of stocks required to be accumulated according to the agreements with the relevant economic operators. When concluding agreements on accumulation and management of stocks, an economic operator must, in accordance with the procedure laid down in the Rules, provide a guarantee of the discharge of the obligations.
4. The Agency may enter into fixed-term agreements on accumulation and management of stocks referred to in point 1 of paragraph 2 of this Article, excluding specific stocks, with:
1) other enterprises registered in the Republic of Lithuania or operators of other Member States providing services accumulating and managing stocks (without the right to subdelegate these services to third parties);
2) the central stockholding entities of petroleum products and oil set up by other Member States (hereinafter: the ‘central stockholding entity’) (without the right to subdelegate these services to other Member States or their central stockholding entities).
5. Conclusion of agreements referred to in point 1 of paragraph 4 of this Article shall be subject to prior consent of the Ministry of Energy and, in the case of the intended holding of stocks within the territories of other Member States, shall be subject to prior consents of the competent authorities of all the Member States within whose territories these stocks are to be held. Any amendment to or extension of the agreements on accumulation and management of stocks referred to in point 1 of paragraph 4 of this Article shall require a new consent of the Ministry of Energy and the competent authorities of other Member States concerned. Conclusion of agreements referred to in point 2 of paragraph 4 of this Article shall be subject to prior consent of the Ministry of Energy and, where legal acts of the Member States concerned so provide, prior consents of the competent authorities of those Member States. The procedure for granting consents by the Ministry of Energy shall be laid down in the Rules.
6. Repealed as of 1 January 2019.
CHAPTER THREE
ACCUMULATION AND HOLDING OF STOCKS
Article 6. Accumulated stocks
1. Stocks must be accumulated in the quantities calculated in accordance with the Rules to meet the greater of the following needs:
1) 90 days of average daily net imports or
2) 61 days of average daily inland consumption.
2. Part of the stocks shall be constituted of specific stocks accumulated and managed by the Agency with state funds to be accumulated by the Agency at a level corresponding to at least 30 days’ average daily inland consumption in the preceding calendar year. The remaining proportion of stocks shall be accumulated by obligated enterprises.
3. Stocks must be accumulated in the form of petroleum products and/or crude oil, intermediate petroleum products or blending components intended for refining into final petroleum products. Crude oil or intermediate petroleum products must be converted into petroleum products pursuant to the Rules. Specific stocks must be accumulated in the form of gasoline, kerosene-type jet fuel, gas oil, diesel and/or fuel oil.
4. Derogations from the quantities of stocks referred to in this Article may be granted only in the cases specified in Article 15(1) of this Law.
Article 7. Procedure for calculating quantities of stocks
By 30 April of each year, the Ministry of Energy shall, pursuant to the Rules, calculate and approve for the Agency and obligated enterprises the categories of accumulated stocks as well as concrete quantities of stocks which must be accumulated from 1 July. When approving the categories of products of specific stocks accumulated by the Agency, the Ministry of Energy shall ensure that the oil equivalent of quantities of products consumed in the reference year according to the approved categories is at least equal to 75 % of inland consumption. The procedure for applying the approved categories and quantities of accumulated stocks shall be laid down by the Rules.
Article 8. Quality of stocks
1. Petroleum products of all seasonal classes used in the Republic of Lithuania may be held as stocks. The quality of stocks must meet the requirements of European standards, technical conditions and/or standards of enterprises.
2. In accumulating petroleum products produced according to the requirements of technical conditions and standards of enterprises, where such products meet the requirements of mandatory quality indicators for petroleum products, biofuels and liquid fuels consumed in the Republic of Lithuania as approved by the order of the Minister of Energy of the Republic of Lithuania, the Minister of Environment of the Republic of Lithuania and the Minister of Transport and Communications of the Republic of Lithuania, only when blended with bio-components, it must be ensured that, before such stocks are supplied to the market of the Republic of Lithuania, such stocks are blended with a sufficient quantity of bio-components and, after blending, meet the requirements for the mandatory quality indicators for petroleum products, biofuels and liquid fuels consumed in the Republic of Lithuania.
3. The Agency may, after obtaining authorisation of the Ministry of Energy, replace stocks of gasoline and diesel oil which meet the general requirements only of European standards EN 228 and/or EN 590 by supplying such stocks to the market of the Republic of Lithuania not more than every three years from the date of acquisition of the appropriate stocks of gasoline or diesel oil.
4. In the event of an energy emergency, stocks of gasoline and diesel oil meeting the general requirements only of European standards EN 228 and/or EN 590 may be put on the market of the Republic of Lithuania.
Article 9. Manner of accumulation of stocks
1. Stocks shall be accumulated by acquiring rights of ownership or of claim to them.
2. The Agency may, on the basis of the rights of claim, accumulate up to 100 % of stocks, with the exception of specific stocks which all must be accumulated by way of ownership. Obligated enterprises may accumulate all of the stocks which they must accumulate on the basis of the rights of claim.
3. Irrespective of the manner in which stocks are accumulated, the Agency and obligated enterprises must ensure that the stocks are physical accessible, i.e. their release or effective delivery to end users is possible in the cases provided for in Article 15(1) of this Law within the time frames and conditions set out by this Law.
4. Obligated enterprises may conclude agreements on accumulation and management of stocks with:
1) the Agency;
2) other enterprises registered in the Republic of Lithuania which provide services related to accumulating and managing stocks and which have surplus stocks or available stockholding capacity (without the right to subdelegate these services to third parties);
3) the central stockholding entities of other Member States;
4) operators of other Member States which have surplus stocks or available stockholding capacity (without the right to subdelegate these services to third parties).
5. Agreements referred to in point 2 of paragraph 4 of this Article and any amendment to or extension of such agreements must be notified in advance to the Ministry of Energy in accordance with the procedure laid down in the Rules. Conclusion of agreements referred to in points 3 and 4 of paragraph 4 of this Article as well as any amendment to or extension of such agreements shall be subject to prior consent of the Ministry of Energy and of the competent authorities of all the Member States within whose territories these stocks are to be held. The procedure for granting consents by the Ministry of Energy shall be laid down in the Rules.
6. Before granting the consents referred to in paragraph 5 of this Article, the Ministry of Energy shall, pursuant to the Rules, assess the conditions under which the planned agreements on the provision of services related to accumulating and managing stocks within the territories of other Member States, determine whether the requirements of paragraphs 3 and 4 of this Article are met in respect of the stocks held by such operators, their stockholding capacity as well as the requirements of Article 10 of this Law concerning the stockholding, and whether all necessary consents are received from the competent authorities of other Member States. Obligated enterprises may not conclude agreements on accumulation and management of stocks with those operators in respect of which the Ministry of Energy has not granted prior consent.
7. Agreements on the provision of services related to accumulating and managing stocks must specify the quantity of stocks, the location of stocks, the quality of stocks, the price of stocks, the rights, obligations and liability of the parties, the period of validity of the agreement and the conditions for terminating it, the dispute settlement procedure and the procedure of holding and accounting of stocks.
Article 10. Stockholding
1. Stocks other than specific stocks may be held within the territories of other Member States. Obligated enterprises may hold up to 30 % of all the stocks within the territories of other Member States.
2. All stocks must be held within the territory of the Republic of Lithuania or within the territories of other Member States in depots (terminals)or storage facilities of petroleum products or oil that are set up as required in relevant legal acts of those Member States.
3. Stocks held within the territory of the Republic of Lithuania must be held in such a manner that they can, at the instruction of the Ministry of Energy, be delivered to end users at any time.
4. Stocks held in other Member States may be held only in such depots (terminals) and storage facilities from which the stocks can be taken and transported at any time to the Republic of Lithuania in such a manner that, at the instruction of the Ministry of Energy, they are delivered to end users within 20 days of the decision to release the stocks in the cases provided for in Article 15(1) of this Law.
5. Where specific stocks are commingled with other stocks, the operator holding such stocks shall not have the right to move those commingled stocks, to the extent of the proportion constituting specific stocks, without prior written authorisation of the Agency or, where specific stocks of another Member State are held in this manner in the Republic of Lithuania, without authorisation of the owner of those specific stocks and of the Agency.
6. The procedure of accounting of stocks shall be laid down in the Rules.
Article 101. Transfer of state property by the right of property trust under a trust agreement
1. The stocks belonging to the State by the right of ownership shall be managed by the Agency by the right of property trust under a trust agreement. A decision on the transfer, by the right of property trust, of stocks belonging to the State by the right of ownership shall be taken by the Government. Such a decision must specify the state institution or body authorised to conclude the property trust agreement.
2. No execution in respect of the Agency’s creditors may be levied against the stocks managed by the Agency by the right of property trust under a trust agreement, such stocks may not be pledged or otherwise encumbered, unless the Agency delegates under agreements to third parties the rights of claim to the stocks managed by the Agency which exceed the quantities of stocks which must be accumulated under this Law (hereinafter: ‘surplus stocks’).
3. In addition to other essential terms and conditions of a property trust agreement specified in the Civil Code of the Republic of Lithuania, a property trust agreement must provide for the obligation for the Agency to publish on the Agency’s website, not later than by 1 May of the following year, a report on the management, use and disposal of the stocks belonging to the State by the right of ownership for the preceding financial year.
Article 11. Accumulation of stocks by way of ownership
1. The State shall acquire the right of ownership to stocks when the Agency acquires these stocks in accordance with the procedure laid down in the Law of the Republic of Lithuania on Public Procurement (hereinafter: ‘the Law on Public Procurement’). The stocks accumulated with state funds may only be owned by the State. The stocks owned by the State shall be managed by the Agency by the right of property trust under a trust agreement.
2. Repealed as of 1 January 2019.
3. The stocks acquired by the State by the right of ownership as well as the stocks accumulated and managed under agreements with obligated enterprises may be held by the Agency in the petroleum product or oil depots (terminals) or storage facilities all or part whereof are managed by the Agency on the basis of property trust or rental or are at the disposal of depot (terminal) service providers.
Note in the Register of Legal Acts. Fixed-term loan for use agreements for state assets concluded before the entry into force of Law No XIII-2287 (1 October 2019) shall remain in force until their expiry date. Upon the entry into force of this Law, the lenders shall, subject to giving notice to borrowers in accordance with the procedure laid down in the Civil Code of the Republic of Lithuania, terminate all contracts of loan for use of state assets of indefinite duration.
4. Where stocks are to be held at the disposal of depot (terminal) service providers, the Agency shall select a specific provider of depot (terminal) services in accordance with the procedure laid down in the Law on Public Procurement. When entering into an agreement with the Agency on the holding of stocks, the depot (terminal) service provider must undertake to ensure that the quantity of stocks remains unchanged, having regard to natural losses and measurement errors, and the quality of stocks corresponds to the mandatory quality indicators referred to in Article 8 of this Law.
5. No execution in respect of claims of creditors of obligated enterprises may be levied against the stocks, other than commercial stocks, which are accumulated by the obligated enterprises by way of ownership, these stocks may not be pledged or otherwise encumbered.
Article 12. Accumulation of stocks by way of rights of claim
1. Rights of claim to a specific quantity of stocks shall be acquired on the basis of transactions (agreements). The requirements laid down in Article 8 of this Law shall also apply to the stocks accumulated on the basis of the rights of claim. The rights of claim held by the State to the stocks shall be managed by the Agency by the right of property trust under a trust agreement.
2. The Agency may enter into transactions/agreements referred to in paragraph 1 of this Article only with the operators specified in Article 5(4) of this Law and obligated enterprises - only with the operators specified in Article 9(4) of this Law. These transactions/agreements may be entered into only for the stocks held within the territory of the Member States, these transactions/agreements shall also be subject to the relevant restrictions specified in Article 5(5) and Article 9(5) of this Law.
3. The default risk arising from a transaction/agreement referred to in paragraph 1 of this Article must be insured or guaranteed by other means in accordance with the procedure laid down in the Rules.
Article 13. Costs of accumulation and management of stocks
1. Stocks shall be accumulated and managed with funds of the Agency, obligated enterprises, state budget appropriations (hereinafter: ‘state funds’), other lawfully received funds.
2. Obligated enterprises shall cover with their own funds all expenses related to the accumulation and management of the stocks which must be accumulated and which have been calculated in respect of the enterprises in accordance with the procedure laid down in this Law. These expenses shall be included in the cost of the goods or services sold by them and shall be accounted for separately.
CHAPTER FOUR
ACQUISITION, USE, REPLACEMENT AND TRANSFER OF STOCKS
Article 14. Acquisition of stocks
1. The Agency and obligated enterprises which are contracting authorities in accordance with the Law on Public Procurement shall acquire stocks and/or rights of claim in accordance with the procedure laid down in the Law on Public Procurement.
2. Obligated enterprises which are not contracting authorities in accordance with the Law on Public Procurement shall acquire stocks and/or rights of claim by any lawful means.
3. The procedure for verifying the conformity of transactions to national security interests as established by the Law of the Republic of Lithuania on the Protection of Objects of Importance to Ensuring National Security shall apply mutatis mutandis to the transactions of the acquisition or replacement of specific stocks concluded by the Agency.
4. The provisions of Article 17 of the Law of the Republic of Lithuania on the Protection of Objects of Importance to Ensuring National Security shall apply mutatis mutandis to the staff of the Agency who in the Agency perform the functions related to the acquisition or replacement of specific stocks.
Article 15. Use and writing-off of stocks
1. The stocks which must be accumulated under this Law may be used during the period of an energy emergency in the cases and in accordance with the procedure laid down by the Law of the Republic of Lithuania on State Reserve or in compliance with international obligations of the Republic of Lithuania, when the Governing Board of the International Energy Agency takes an international decision to use the stocks in accordance with the Agreement on an International Energy Programme of 18 November 1974 (hereinafter: an ‘international decision to use stocks’). The amount of specific stocks may, in accordance with the procedure laid down by the Rules, be temporarily reduced by carrying out the stock replacement procedures provided for in Article 16 of this Law. When the stocks are used in the cases specified in this paragraph, the stocks shall be brought back up to the required levels within the time limit set by the European Commission or the International Energy Agency.
Note in the Register of Legal Acts. Paragraph 1 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
2. In the event of an energy emergency, stocks shall be used in accordance with Articles 17 and 18 of this Law and the Description of the Procedure for Supplying Customers with Energy and/or Energy Sources in the Event of an Energy Emergency approved by the Government.
3. When an international decision to use stocks is taken, the Government or an institution authorised by it shall take a decision regarding the use of the stocks in accordance with the Description of the Procedure for Supplying Consumers with Energy and/or Energy Sources in the Event of an Energy Emergency and/or apply the measures to stabilise the supply and/or to reduce the consumption of petroleum products as set out in the Plan for the Application of Restrictions on the Supply and Consumption of Petroleum Products.
Note in the Register of Legal Acts. Paragraph 3 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
4. Where the Agency has accumulated more stocks than required under this Law, the Ministry of Energy may, in accordance with the procedure laid down in the Rules, authorise the sale of surplus stocks as accumulated by the Agency or grant, under agreements, the rights of claim to the surplus stocks accumulated by the Agency to other economic operators or to hold this surplus until new tasks of accumulation of stocks are approved in accordance with the procedure laid down in Article 7 of this Law. The funds obtained from the selling of surplus stocks accumulated by the Agency in accordance with the procedure laid down in this paragraph may be used only for the performance of the functions assigned to the Agency by this Law.
5. In accumulating and/or managing stocks, the losses of petroleum products or oil resulting from natural wastage and not exceeding the limits of the maximum allowances for natural wastage of fuel as approved by the Government or an institution authorised by it, as well as losses resulting from the samples needed for quality control laboratory testing may be written off in accordance with the procedure laid down in the Rules.
Article 16. Replacement of stocks
1. If the Agency identifies that the quality of its stocks managed by the right of property trust under a trust agreement may deteriorate to the extent that they would no longer meet the mandatory quality indicators specified in Article 8 of this Law, it shall refer in writing to the Ministry of Energy for the consent of the Ministry of Energy:
1) to replace stocks by way of direct replacement when existing stocks are replaced by new petroleum products, or
2) to replace stocks by way of purchase and sale when new petroleum products are purchased and the stocks held are sold, or
3) to extend the holding of stocks.
2. The stocks accumulated by the Agency and obligated enterprises which are contracting authorities in accordance with the Law on Public Procurement shall be replaced in accordance with the procedure laid down in the Law on Public Procurement.
3. Obligated enterprises which are not contracting authorities in accordance with the Law on Public Procurement shall replace stocks by any lawful means.
CHAPTER FIVE
ENERGY EMERGENCY
Article 17. Energy emergency
1. In the event of an energy emergency, the Government, the Ministry of Energy and the Government Emergency Commission (hereinafter: ‘the Emergency Commission’) shall take the actions specified in the Law of the Republic of Lithuania on Civil Protection, the Law on Energy and this Law.
2. In the case of an energy emergency in the oil sector, the Government, the Ministry of Energy and the Emergency Commission shall, with a view to allowing for the prompt, effective and transparent use of stocks having regard to restrictions on the supply and consumption of petroleum products during the energy emergency, take the measures specified in the Description of the Procedure for Supplying Customers with Energy and/or Energy Sources in the Event of an Energy Emergency.
3. In the event of an energy emergency, the Agency and obligated enterprises must take all necessary measures to maintain a network of supply (trading and distribution) of petroleum products to consumers existing before the declaration of this emergency and to provide the possibility to cover with the supply of petroleum products the same territory of the country which was supplied before the declaration of the energy emergency.
4. In the event of an energy emergency, economic operators shall not have the right to apply to the Agency and to obligated enterprises the rates of loading and transportation of petroleum products higher than those in force before the declaration of the energy emergency, and the prices of petroleum products may not exceed the Northwestern European market prices or the Rotterdam region prices (having regard to transportation, loading and insurance costs).
5. In the event of an energy emergency, restrictions on the supply and consumption of petroleum products shall apply least to the enterprises which produce electricity and/or heat from petroleum products, to objects of strategic importance to national security, to the state institutions designated by the Government or an institution authorised by it in consultation with the Emergency Commission, as well as to the enterprises which produce, extract, import, load or transport petroleum products or oil for inland consumption. Based on the Plan for the Application of Restrictions on the Supply and Consumption of Petroleum Products referred to in Article 18 of this Law and in view of meeting the needs of daily inland consumption, stocks held in other Member States under this Law must be brought into the Republic of Lithuania in accordance with the procedure laid down in Article 10(4) of this Law.
6. If the accumulated quantity of stocks is below the compulsory minimum level set by this Law, stocks shall be released in amounts immediately necessary for an initial response to an energy emergency, and the European Commission and the International Energy Agency shall be informed thereof immediately.
Note in the Register of Legal Acts. Paragraph 6 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
7. The stocks to be released shall be distributed among the enterprises which have a network of supply (sale, distribution) of petroleum products to consumers in proportion to the market share held by these enterprises before the declaration of an energy emergency.
8. In the event of an energy emergency, it shall be prohibited to export or bring out from the country the oil extracted and petroleum products available in the country (excluding the products carried in transit and stocks of other countries held in the Republic of Lithuania). Oil must be refined in the refineries of the country, and petroleum products must be consumed inland. Stocks shall be used for energy production and for the needs of public and special transport.
9. The Government or an institution authorised by it may take a decision not to apply all or part of the restrictions stipulated in paragraph 8 of this Article, provided that such non-application of restrictions does not adversely affect the implementation of the Plan for the Application of Restrictions on the Supply and Consumption of Petroleum Products indicated in Article 18 of this Law.
Article 18. Plan for the Application of Restrictions on the Supply and Consumption of Petroleum Products
1. The Plan for the Application of Restrictions on the Supply and Consumption of Petroleum Products shall be approved by the Government or an institution authorised by it. The Plan for the Application of Restrictions on the Supply and Consumption of Petroleum Products shall establish supply disruption levels of petroleum products, measures to stabilise the supply and/or to reduce the consumption of petroleum products where an energy emergency is declared after the supply of petroleum products is reduced to the extent that a threat emerges to the security and health of the population or to the functioning of the national economy.
Note in the Register of Legal Acts. Paragraph 1 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
2. Repealed as of 4 July 2020.
3. In an energy emergency, stabilisation of the supply and/or reduction of the consumption of petroleum products shall be subject to the measures for restricting the supply and consumption of petroleum products as specified by the Government or an institution authorised by it for the relevant level of disruption of the supply of petroleum products and as set out in the Plan for the Application of Restrictions on the Supply and Consumption of Petroleum Products.
Note in the Register of Legal Acts. Paragraph 3 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
CHAPTER SIX
PROVISION OF INFORMATION, STOCKS INFORMATION SYSTEM,
REPORTING AND INSPECTIONS
Article 19. Provision of information
The enterprises engaged in the extraction, production, import, export, trade, bringing in and bringing out of petroleum products and/or oil and the enterprises using petroleum products or oil, as well as Statistics Lithuania, the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania and the Customs Department under the Ministry of Finance of the Republic of Lithuania must provide information to the Ministry of Energy or to the Agency for the purpose of the implementation of provisions of this Law. The scope of the information provided under this Article and the procedure for providing it shall be established by the Ministry of Energy.
Article 20. Provision of information after use of stocks
After using stocks in the cases specified in Article 15(1) of this Law, energy enterprises must provide to the Ministry of Energy the following information:
1) on the day following the taking of a decision to use the stocks in the cases specified in Article 15(1) of this Law, to report on available stocks and to indicate their holding locations;
2) from the nearest Monday following the taking of a decision to use the stocks in the cases specified in Article 15(1) of this Law, to report weekly on available stocks, supply and consumption of petroleum products and oil until the accumulation of the approved quantity of the stocks.
Note in the Register of Legal Acts. Article 20 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
Article 21. Stocks information system and reports
1. The Agency shall manage and administer a regularly updated and comprehensive stocks information system indicating the exact quantities, nature, owners of stocks, the depots, refineries and storage facilities holding such stocks with reference to the categories defined in Regulation (EC) No 1099/2008, information on the costs of accumulation and management of stocks, as well as other data and information referred to in the Rules.
Note in the Register of Legal Acts. Paragraph 1 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
2. Statistics Lithuania and the Agency shall be responsible for drawing up and submitting reports on stocks to the institutions of the European Union and to the International Energy Agency. The procedures and time limits for drawing up and submitting the reports on stocks shall be laid down in the Rules.
Note in the Register of Legal Acts. Paragraph 2 will apply from the entry into force of the Agreement on an International Energy Programme of 18 November 1974 for the Republic of Lithuania.
3. Data, records, reports and documents related to the accumulation of stocks must be stored for the period of five years.
Article 22. Inspections of accumulation of stocks
1. The Council shall, within its remit, provide assistance to persons authorised by the European Commission to carry out inspections of accumulation of stocks. In carrying out the inspections of accumulation of stocks, the Agency, obligated enterprises, other state institutions shall ensure that these persons have access to the documents and information systems related to stocks and to all locations whereat stocks are held.
2. The Council, other persons, as well as members of the Coordination Group for oil and petroleum products set up in accordance with Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products must keep and not disclose information which has been collected or exchanged under this Article and which is considered to be a professional secret.
3. Personal data obtained in the course of the inspections of accumulation of stocks referred to in this Article may not be subject to processing and no use may be made thereof. If such data are obtained or collected accidentally, they must be destroyed without delay.
CHAPTER SEVEN
CENTRALISED ACCUMULATION AND MANAGEMENT OF STOCKS
Article 23. Centralised accumulation and management of stocks
1. Centralised accumulation and management of stocks shall commence on 1 January 2015. Upon commencing the centralised accumulation and management of stocks, the Agency shall be under the obligation to conclude, in accordance with the procedure laid down in Article 24 of this Law, with obligated enterprises the agreements on accumulation and management of stocks referred to in Article 9(4) of this Law.
2. Stocks shall be centrally accumulated and managed with the funds specified in Article 13 of this Law, as well as with funds of obligated enterprises paid to the Agency for the services of centralised accumulation and management of the proportion of the stocks assigned to them.
3. Pending the commencement of centralised accumulation and management of stocks, the Agency shall have the obligation to conclude, in accordance with the procedure laid down in this paragraph, the agreements on accumulation and management of stocks referred to in Article 9(4)(1) of this Law with obligated enterprises for a maximum of 10 % of the quantity of stocks which must be accumulated by the enterprise concerned. In order to make use of the option provided for in this paragraph, the obligated enterprises must inform the Agency of their choice for the coming year not later than 170 days prior to assigning the next annual task of accumulation of stocks. Where the obligated enterprises declare themselves willing to conclude agreements with the Agency for more than 10 % of the quantity of stocks which must be accumulated by the enterprise concerned, the Agency shall have the right to decide whether to conclude the agreements on the quantity of stocks exceeding 10 %.
Article 24. Obligation for the Agency to centrally accumulate and manage stocks
1. Upon commencing the centralised accumulation and management of stocks, obligated enterprises may choose on an annual basis:
1) to conclude agreements with the Agency on all or part of the stocks which they must accumulate and manage, or
2) to organise, independently and at their own expense, the accumulation and management of all or part of the stocks which they must accumulate and manage under the conditions and in accordance with the procedure laid down by this Law.
2. In order to make use of the option provided for in point 1 of paragraph 1 of this Article, obligated enterprises must inform the Agency of their choice for the coming year not later than 170 days prior to imposing the next annual task of accumulation of stocks. Where the obligated enterprises inform of their choice late, the Agency shall have the right to decide whether to conclude agreements referred to in point 1 of paragraph 1 of this Article.
CHAPTER EIGHT
FINAL PROVISIONS
Article 25. Liability
Persons in breach of the requirements of this Law shall be held liable in accordance with the procedure laid down by the Code of Administrative Offences of the Republic of Lithuania.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS
Annex to the Republic of Lithuania
Law on State Stocks of
Petroleum Products and Oil
LEGAL ACTS OF THE EUROPEAN UNION IMPLEMENTED BY THIS LAW
1. Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products.
2. Commission Implementing Directive (EU) 2018/1581 of 19 October 2018 amending Council Directive 2009/119/EC as regards the methods for calculating stockholding obligations.