Explorations of a Hydrogeothermal Resources in the Republic of Serbia

For the purpose of establishing the potential of thermal waters as possible sources of geothermal energy, geological or hydrogeological explorations shall be conducted. Such explorations shall be conducted in compliance with the Law on Geological Explorations, technical and other regulations. The Law on Geological Explorations stipulates that resources of geothermal energy are mineral raw materials. According to the the Law in Mining, mineral raw materials, inter alia, include ground waters from which useful resources (e.g. iodine, etc.) and geothermal energy are obtained.

For the purpose of acquiring the right to geological explorations, which is the precondition for acquiring the right to exploit mineral raw materials, one has to meet a series of requirements stipulated in the Law on Geological Explorations and executive regulations under this Law. Geological explorations may be basic and detailed geological explorations. Basic geological explorations (*59) are activities of public interest and they are financed from the budget of the Republic of Serbia.

Detailed geological explorations are conducted for the purpose of getting detailed geological data on the position, size, form, composition, and constitution of a deposit, quality, and reserves of mineral raw materials and conditions of exploitation, properties of the terrain in order to establish the requirements for construction, and to draw up the program of environmental protection. Detailed geological explorations for the purpose of preparation of geotechnical and hydrogeological documents for utilization of geothermal energy may not be conducted in the terrain in which basic geological explorations have not been conducted.

It is necessary to point to the fact that certain exploratory works, within detailed geological explorations, do not need to be carried out if there are sufficiently reliable data, requirements, and documents available based on which one may start preparing the technical documentation. It is also necessary to point to the fact that such works shall be carried out in compliance with the modern scientific achievements, regulations, standards, and technical norms related to that type of works, with the regulations stipulating requirements with respect to safety at work, fire and explosion protection, and environmental protection.

Only an economic operator registered in the relevant registry for engaging in the activity, which includes: 1) Geological explorations, 2) Preparation of geological investigation designs, and 3) Preparation of the study of results of geological explorations – may carry out the specified work. Such an economic operator shall have adequate experts engaged on the tasks of management and supervision. (*60) In case data from the basic geological explorations are used for detailed geological explorations, the party using such data shall pay a charge of 5% of the real value of the conducted explorations on the particular exploration area.

The beneficiary shall conclude the contract with the Ministry of Environment and Spatial Planning on the method and terms of payment of the charge for the use of such data. Geological explorations shall be conducted on the basis of: 1) The geological investigation design, 2) The approval for the exploration. Upon completion of geological explorations, the study of results of geological explorations shall be prepared. In the course of exploitation, records shall be kept (Records Book) of exploitation of ground waters based on which the Study of reserves of geothermal waters shall be prepared.



Geological Investigation Design

The Law on Geological Explorations prescribes the contents of the geological investigation design (*61) when ground waters are in question as well. An integral part of the design shall be the report on the completed review of the design. The review shall be related to the verification of implementation of modern achievements and methods of geological science and techniques and harmonization with technical regulations, norms, and standards, as well as to the verification with respect to the implementation of relevant measures and standards for environmental protection, safety at work, safety of facilities and people and adjacent structures. The Law on Geological Explorations prescribes who may carry out the review of a geological investigation design. The review of a design may be carried out by a company or by another legal entity, which fulfills the requirements for preparation of geological investigation designs prescribed by the law.

Approval for Exploration

In order to be able to conduct geological explorations of hydrogeothermal energy on a certain exploration area, it is necessary to obtain the Approval for Exploration. This approval shall be issued by the Ministry of Environment and Spatial Planning and, for the territory of the Autonomous Province – by the competent Secretariat.

The application for the approval for exploration shall contain: 1) The data on the exploration entity; 2) The subject matter of geological explorations and the type of exploratory works; 3) Definition of the area on which the exploration shall be conducted; 4) Data on the amount of the funds for exploration; 5) The time of commencement of carrying out of the works and the duration of geological explorations. The following shall be submitted with the above application: 1) The geological investigation design including the report on and certificate of the completed review, 2) The topographic map with plotted borders of the exploration area and coordinates of breaking points in the scale: 1:25000; 3) The evidence of the paid tax for exploration right, 4) The approval from the Inter-municipal Institute for Protection of Cultural Monuments, 5) The approval from the nstitute for Nature Conservation of Serbia.

The Law on Waters prescribes that water documents are necessary for mining exploratory and exploitation works (*62). Consequently, the Water Requirements and the Water Approval (*63) shall be submitted with the application for the approval for geological exploration of ground waters. The Law on Geological Explorations does not stipulate any specific deadline for issuing the approval for exploration and, therefore, the general deadline from the Law on General Administrative Procedure (*64) shall apply to this deadline.

This approval shall regulate the actual procedure of exploration and it shall contain: 1) The name of the exploration entity, with the indication of its seat; 2) The subject matter of the exploration and the type of exploratory works; 3) The area in which exploration will take place (the exploration area); 4) The times within which the exploration entity shall report on the works and results of exploration to the Ministry of Environment and Spatial Planning, or to another authority that has issued this approval (reporting shall be on quarterly basis); 5) The time within which the exploration must commence (otherwise the right shall be forfeited) and the validity period of the approval, or the deadline for completion of the exploration. (*65)

The approval for exploration shall have two deadlines: 1) The deadline for finalization of geological exploration, and 2) The deadline for commencement of the actual exploration. In case the exploration entity does not commence the works within the period specified in the approval for exploration, the approval shall cease to be valid. Likewise, in case the exploration entity does not carry out the works continuously for six months, within a period since it has started carrying out the works, the authority that has issued the approval may revoke it, upon the completed procedure.

The Law on Geological Explorations prescribes the conduct of the authority in the case the applications for the approval have been submitted by two or more economic operators. In the specified case the priority shall have the economic operator, which provides the most favorable terms and conditions with respect to the deadlines for conducting that type of exploration, the price, and other conditions. (*66)

The authority that has issued the approval for exploration shall keep records of exploration areas and the cadastre of approved exploration areas. The data on the exploration entity, exploration area, and the subject matter of geological explorations shall be entered in this cadastre. The interested and other legal entities shall be entitled to the insight in the Cadastre of Approved Exploration Areas. It is necessary to point to the fact that in an area that is a protected area of nature, an entirety of cultural, historical, and architectural importance, a tourist and recreation entirety, a spring of special importance for regional water supply and other protected areas, conducting of geological explorations may be approved only with the previously obtained approval from the authority in charge of the relevant area in compliance with a special law. (E.g. if the works are to be carried out in the National Park of Fruška Gora-Mt. or at an archeological site).



Conducting the Geological Explorations

When carrying out the works on geological explorations, the contractor shall: 1) Carry out the works in line with the geological investigation design, technical regulations, norms, standards, and modern professional and scientific methods that apply to the carrying out of such works; 2) Implement all the prescribed measures of safety at work; 3) Undertake measures that shall ensure protection of the technological process, equipment, and plants, safety of the employees, traffic, and adjacent structures; 4) Undertake measures for environmental protection; 5) Upon completion or suspension of geological explorations in the area in which the works have been carried out, it shall implement all the safety measures, which shall permanently exclude occurrence of any threats to people, property or to the environment, and shall bring back the terrain to its original use within the time period specified in the design, and shall notify thereof the competent authority of the municipality in whose territory the works have been carried out as well as the authority, which has issued the approval for exploration; 6) Secure the borehole against uncontrolled overflow or eruption if ground water is detected, which is not going to be immediately exploited; 7) Close the borehole if it is established that it is negative, and the results of the explorations and laboratory testing demonstrate that it cannot serve for another use.

The contractor shall report on the commencement of the works, within minimum 15 days prior to the commencement of exploratory works, to the competent authority of the municipality whose territory includes the exploration area and to the authority that has issued the approval for exploration and, if the works are carried out in the area of a national park, also to the organization that manages the protected natural asset. The Law on Geological Explorations prescribes in detail the method of conducting geological explorations and treatment of the found mineral raw materials.

Exploratory works shall be carried out on the exploration area, which shall have the surface area indicated in the topographic map bordered by coordinates. The size of such an area shall be established in the approval for exploration. In the course of carrying out of the works, the exploration entity shall ensure supervision over the carrying out of geological explorations, which shall verify the quality of the works and harmonization of the works with the design, law, technical and other regulations. The supervision may be exercised by a person who meets the prescribed requirements. (*67)

The exploration entity may exercise supervision directly or may cede such supervision to another economic operator, which meets the requirements. Such supervision (review) must also be ensured for preparation of geological documentation for all the works on preparation, elaboration, and exploitation of mineral raw materials, as well as during construction of all the underground facilities and above-ground facilities intended for the utilization of mineral raw materials.

Study of Results of Geological Explorations

The study of results of geological explorations shall be prepared upon completion of the geological explorations stipulated in the design. This study shall contain in particular: 1) Presentation and evaluation of former explorations; 2) The aim and method of exploration; 3) Systematized presentation of data obtained by field explorations; 4) Presentation and explanation of results of the exploration; 5) Presentation of reserves of mineral raw materials and exploitation conditions and measures for protection of the environment, as well as 6) Techno-economic assessment of the results of the exploration.

This study shall be subject to review, which shall check whether geological explorations were conducted according to the geological investigation design, whether, based on the obtained data, an adequate conclusion on results of the explorations has been derived, and whether the study has been made in compliance with the law and other regulations. Such review shall be carried out in the manner and under the conditions prescribed for the review of geological investigation designs. (*68)

The study of results of geological explorations has the character of archival materials and shall be kept permanently in compliance with the regulations. The exploration entity shall submit one copy of the study to the authority that has issued the approval for exploration to it. The exploration entity shall also ensure keeping of macroscopic and microscopic samples of rocks and other elements of importance for geological explorations and sources prescribed under the law.

Study of Ground Water Reserves (*69)

Every fifth year, the economic operator that carries out the work (the exploration entity) shall submit the study of reserves of ground waters in an exploration or in an exploitation field to the Ministry of Environment and Spatial Planning and, if the work is carried out in the territory of the Autonomous Province, to the competent authority of the Autonomous Province – for the purpose of establishing and certifying ground water reserves.

Pursuant to the Rulebook on classification and categorization of ground water reserves, the study of reserves is made based on regime observations and monitoring of the physical an dchemical properties and other essential elementsduring one hydrological year. Inter alia, the study shall contain: 1) Data on geological and hydrogeological characteristics of the deposit; 2) Data on conducted exploratory works; 3) Methods of exploration; 4) The quality of geothermal waters; 5) Calculation of reserves; 6) Technical and economic assessment of exploitation, etc. The study may be prepared by an organization that is authorized for that type of activities.

The study shall be subject to expert supervision - review, which is within the remit of the Commission ascertaining and certifying ground water reserves, which shall be formed by the Ministry of Environment and Spatial Planning and, for the territory of the Autonomous Province – by the competent secretariat. After completion of the review, public defense of the study shall take place. Upon adoption of the study, the Commission shall issue the Decision on the Ascertained and Certified Ground Water Reserves to the user.

The entity conducting hydrogeothermal explorations shall keep the book of the state of ground water reserves in an exploration or an exploitation area, which is covered by its approval for exploration or exploitation and, each year, it shall submit the data on the state of such ground water reserves to the Ministry of Environment and Spatial Planning, or to the competent authority of the Autonomous Province, in the case the work is carried out in the territory of the Autonomous Province.

Details of Relevant Legislation

(*59) Basic geological explorations include explorations of development, composition, and constitution of the lithosphere and ascertaining the potential of an area with respect to finding mineral raw materials up to the level of exploration of reserves for CI category, ascertaining the state, properties, and characteristics of rocks and soil, ascertaining geotechnical properties of soil for the requirements of planning the use of the space and suitability of the terrain for construction, as well as for the purpose of protection of the environment and drawing of relevant geological maps. – Article 5 of the Law on Geological Explorations.

(*60) The Law on Geological Explorations and the Rulebook on Requirements, Method, and Program of Taking Licensing Examination for Preparation of Designs and Studies and Conducting Geological Explorations.

(*61) A geological investigation designshall contain in particular: 1) Terms of reference; 2) General data on the exploration area; 3) Overview of the results of previously conducted explorations; 4) Design solutions for the process of geological explorations; 5) Specification of the works by type and scope; 6) Cost estimate, time schedule of carrying out of the works and deadlines for their completion; 7) Deadlines for bringing3 the land back to the original use; 8) The exhibits that are related to the requirements for environmental protection; 9) Safety at work; 19) Fire protection; 11) As well as other exhibits stipulated under the law.

(*62) Article 117, points 18) and 24) of the Law on Waters.

(*63) More about the procedure for issuing of the above decisions in Chapter 2.2.1.1 hereof.

(*64) More about the deadlines referred to in the Law on General Administrative Procedure in the footnote No. 106 hereof.

(*65) In addition to the above requirements, the Approval for Geological Explorations shall
stipulate: 1) The scope and type of the works that must be carried out, and 2) The maximum quantity of mineral raw materials, except for crude oil and natural gases, which may be taken for the purpose of testing their quality and technological properties. These requirements apply to geothermal energy.

(*66) The Law on Geological Explorations also prescribes that, in case there are applications for approvals for exploration, which are related to exploration of different mineral raw materials on the same exploration area, it shall be possible to issue several approvals if there are conditions for unobstructed conducting of such explorations.

(*67) The Law on Geological Explorations and the Rulebook on Requirements, Method, and Program of Taking Licensing Examination for Preparation of Designs and Studies and Conducting Geological Explorations.

(*68) More about this in Chapter 2.1.1 Geological Investigation Design.

(*69) With the completion of the Study of Reserves, the detailed geological explorations stipulated in the Design of Detailed Geological Explorations shall be finished. Further activities shall take place on the basis of the the Law in Mining and the Law on Planning and Construction.

Note: This text is taken from the document-guide for investors "Construction of Plants and Heat/Electricity Generation from Hydrogeothermal Resources in the Republic of Serbia", of which authors are Dr. Branislava Lepotic Kovacevic, PhD Law, Stanislan Milosavljevic, BSc M. Eng, and Bojan Lazarevic, BSc El. Eng.

The project was implemented under the patronage of USAID, GTZ / GIZ Serbia and the Ministry of Energy in 2010.

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