INSPECTION OF WORK SAFETY ON INSTALLATION, EQUIPMENT AND APPLIED

TECHNIQUE IN THE MINING OF OIL AND NATURAL GAS AND EXERTION OF

GEOTHERMIC RESOURCES

REGULATION OF THE MINISTER OF MINING AND ENERGY

No. : 06 P/0746/M.PE/1991

THE MINISTER OF MINING AND ENERGY

Considering : a. that in connection with the increasing development of activities on

the mining of oil and natural gas and geothermic resources applying
high technology, it is necessary to do efforts to ensure work safety
and environment protection by conducting of inspection on the
work safety on the installation, equipment and the technique
applied in a framework of protecting manpower, installation and
equipment safeguarding as well as safeguarding of oil and natural
gas and geothermic resources.

b. that in order to be able to implement inspection on the mentioned

work safety on letter a above it is necessary to have fairly proper
experts, various equipments and sophisticated technologies;

c. that relevant to the above matters, it is deemed necessary to

reenact regulation on the inspection on work safety over the
installations, equipments and technique used in the Mining of Oil
and Gas as well as Geothermic Resources in a Regulation of the
Minister of Mining and Energy.

In view of : 1. Law Number 44 Government Regulation of 1960 (State Gazettes

Number 133 of 1960, Supplement to State Gazettes Number
2070);

2. Law Number 8 of 1971 (SGN 76 of 1971, SSG Number 2971);

3. MPR 1930 (State Gazettes Number 341 of 1930);

4. The Government Regulation Number 11 of 1979 ( SGN 18 of 1979,

SSG Number 3135);

5. Decree of the President Number 22 of 1981 date on 1 June 1981

Juncto Decree of the President Number 45 0f 1991 date on 1 Oc-
Tober 1991;

6. The Decree of the President Number 15 of 1984 date on 6 March

1984;

7. Decree of the President Number 64/M of 1988 date on 21 March

1988;

8. The Regulation of the Minister of Mining Number 02/P/M/Pertamb/

1975 date on 10 March 1975;

9. The Decree of the Minister of Mining and Energy Number 02/P/M/

 Pertamb/1979 date on 30 June 1979;

10. The Decree of the Minister of Mining and Energy Number 521/Kpts/
M/Pertamb/1979 date on 20 June 1979;

DECIDES :

Withdrawing the Regulation of the Minister of Mining and Energy Number 01/P/M/Pertamb/
1980 date on 22 March 1980,

To stipulate:

THE REGULATION OF THE MINISTER OF MINING AND

ENERGY REGARDING INSPECTION ON WORK SAFETY ON
INSTALLATION, EQUIPMENT AND APPLIED TECHNIQUE IN THE
MINING OF OIL AND NATURAL GAS AND EXERTION OF
GEOTHERMIC RESOURCES

Article 1

In this Decree what is meant with :

a. Inspection on Work Safety is a technical inspection on the work capability of an instal-
lation, equipment and technique used in the operation of oil and natural gas mining re-
lated to the aspects of work safety and environmental safety;

b. Operation of the mining of oil and natural gas is any activity carried out in an exploration
and exploitation field, operational location of refinery and processing , operational locati-
on of transportation including oil and natural gas special harbour, selling location inclu-
ding installation/depot and Public Gas Station, Aviation Filling Depot, other operational
location of the mining of oil and natural gas, operational location of city gas business
and the field of exploration and exploitation of geothermic resources.

c. Installation is a collection of equipments assembled in a construction used to perform

a certain function in the mining operation of oil and natural gas.

d. Equipment is any tool used in a mining operation of oil and natural gas, which due to
the characteristic and its type it need to be inspected to ensure security, work safety
and protection of the environment;

e. Applied technique is a method or procedure to be used in a mining operation of oil and

natural gas to ensure security, work safety and protection of environment;

f. Director General is the Director General of Oil and Natural Gas.

Article 2

It is an obligation for the installation, equipment and the applied technique in a mining
operation of oil and natural gas to be subjected to inspection on work safety.
 Article 3
(1) The Inspection on Work Safety mentioned in Article 2 is carried out by the Head of Ins-
pection Executor on Mine.

(2) Inspection Executor on Mine is appointed by the Director General among the employee
of the Directorate General of Oil and Natural Gas who is obliged to meet the expertise
and mastering the necessity theories of oil and natural gas mining and already has fair-
ly enough experiences.

Article 4
If it is deemed necessary the Director General can appoint other party meeting the require-
ments to assist the implementation of the inspection on work safety mentioned in Article 2.

Article 5
The Inspection on a working safety mentioned in Article 2 is conducted as follows :

a. During an installation and or mounting of the equipments;

b. During a performance of the applied technique to be used;
c. Periodically according to the characteristic and the type of the installation, equipments
and the applied technique.

d. Any time if it is deemed necessary by the Director General cq the Director of the Direc-
torate Technique of Oil and Natural Gas Mining.

Article 6
The Director General issues Certificate of Feasibility of Use of the installation, equipments
and the applied technique following the inspection of work safety.

Article 7
A company is obliged to submit a report to the Director General at any time a disorder is
found on the installation and or equipment used in the mining operation of oil and natural
gas to get repeated inspection on the work safety.

Article 8
(1) The duration of the Certificate of Feasibility of Use mentioned in Article 6 will be further
stipulated by the Director General.

(2) After ending the duration mentioned in paragraph (1) , then the installation, equipment
and the applied technique is subjected to inspection on work safety as mentioned in the
Article 2.

Article 9
(1) In case the inspection on work safety on the installation, equipment and applied tech-
nique is conducted by other party as mentioned in Article 4, the cost of the inspection
 should be the responsible of the company using the service of inspection.

(2) The Director General can stipulate a maximum cost of an inspection mentioned in pa-
ragraph (1) of this Article.

Article 10
The Director General stipulates further the implementation of this Ministry Regulation.

Article 11
This Ministry Regulation takes effect as of the date of its stipulation.

Stipulated in Jakarta
On 19 November 1991

MINISTER OF MINING AND ENERGY

GINANDJAR KARTASAMITA