Thermal Water Extraction Licence
Extraction of groundwater, which is treated as a mineral (thermal waters in this case), is an activity that requires a licence. This arises directly from the PGM Act whereunder the activity involving extraction of minerals from deposits requires a licence.
Purpose of the licence
The government regulates the possibility of extracting minerals so for lawful operation of a geothermal power plant or heating plant, the investor must first secure a thermal water extraction licence.
When is the licence required?
The licence is required in any case before the geothermal power plant or heating plant starts to extract the thermal water.
Elements of a licence application
The licence application must specify:
- the owners (perpetual users) of the real properties on which the intended activity is to be performed and the references of those real properties in accordance with the register of land and buildings; this requirement does not apply to search for and identification of hydrocarbon deposits; the circumstances must be confirmed through attachment of an extract from the register of land and buildings;
- the applicant’s title to the real property (space) where the activity is to be performed or the title for which the applicant is applying;
- the requested licence term and the activity start date;
- the funds the applicant has at its disposal to guarantee proper performance of the planned activity;
- a list of areas covered by nature conservation; this requirement does not apply to projects which require an environmental decision;
- how any negative environmental impacts of the planned activity are going to be prevented;
- the name, registered office and address of the entrepreneur or their residence address and principal place of business;
- number in the KRS register of companies, if any, and the tax identification number (NIP);
- the type and scope of the planned activity;
- the mineral deposit or the part thereof that is going to be extracted;
- the size and method of the planned mineral extraction;
- the extent of the planned utilisation of the usable resources of the intake, including the accompanying minerals and the concomitant trace elements, as well as the means to achieve this;
- the planned location of the mining area and the mining site presented in accordance with the requirements for mining maps, with outlined boundaries of the country’s territorial division;
- the geological and hydrogeological conditions of the extraction or, where applicable, the conditions of water injection into the ground.
The following shall be attached to the application:
- evidence confirming the applicant’s right to use geological disclosures for the planned activity and a copy of the decision approving the geological documentation;
- evidence confirming the applicant’s title to the land on which the mineral extraction activity relying on surface mining is to be performed or evidence confirming a commitment to establish this title;
- a deposit management design which defines the requirements of rational mineral management, especially through comprehensive and rational use of the principal mineral and the accompanying minerals, and the mineral extraction technology, which must limit any negative environmental impacts. This obligation does not apply to licences issued by the county administrator (Polish: starosta).
Additionally, a licence application addressed to the county administrator must also define the anticipated mine operation method, which must take into account the requirements set forth in Article 108(2) of the PGM Act, and the forecast way of shutting down the mine, taking into account the obligations laid down in Article 129(1) of the PGM Act.
On top of that, if geological documentation has already been prepared for the space covered by the application, the licensing authority may request access to that documentation.
A licence application preceded by an environmental decision issued in a procedure with mandatory participation of the public must include a visual appendix specifying the anticipated project implementation site and the anticipated project impact area, provided that the submission of this appendix was required by the regulations in effect on the date of applying for the environmental decision, and especially the map referred to in Article 74(1)(3a) of the EIA Act.
The process
The competent authority checks if the application is correct in terms of content and formal aspects and, if necessary, it seeks opinions from relevant bodies. If the verification is positive, the competent authority issues a decision which specifies:
- the type and performance method of the planned activity;
- the space within which the planned activity is to be performed;
- the licence term;
- the start date of the activity defined by the licence or, where necessary, the criteria to be met for the activity to be deemed commenced.
The licence may define other requirements for the licensed activity, especially in the area of general safety and environmental protection, such as:
- minimum deposit utilisation and the undertakings required to ensure rational deposit management;
- the conditions of water injection to the ground; in such a case, the legislation on the use of waters and on fees for use of the environment does not apply.
A licence granted by the county administrator must also define the mine operation method, which must take into account the requirements set forth in Article 108(2) of the PGM Act and the way of shutting down the mine, taking into account the obligations laid down in Article 129(1) of the PGM Act.
The licence also defines the boundaries of the mining area and site. The mining area must be entered in the register of mining areas and closed underground carbon dioxide storage spaces.
Any off-licence use of water (mineral) deposits also requires signing a contract with the State Treasury to establish the deposit mining right. The deposit mining contract for thermal water as a mineral is signed on behalf of the State Treasury by the province marshal. The mining right is in effect during the term of the extraction licence. The mining activities under the signed contract are performed in return for a charge. This means that the user is obligated to pay the fee defined in the contract.
The licensing authority denies a licence if:
- the intended activity is contrary to the public interest, particularly in relation to state security, including energy security, or the state’s resource interests or environmental protection, including rational management of mineral deposits, implementation of the energy transition, including the possibility of obtaining financial resources for its implementation, or would prevent the use of real estate or maritime areas of the Republic of Poland in accordance with their designated purpose as specified in the Local Zoning Plan, in spatial development plans for internal maritime waters, the territorial sea and the exclusive economic zone, or in separate regulations, and in the absence of such plans – would prevent the use of real estate or maritime areas of the Republic of Poland in a manner resulting from the general municipal plan or separate regulations;
- the space and type of activity or – in the case of a licence application regarding search for or identification of a mineral deposit or a licence application regarding mineral extraction from the deposit – the type of mineral defined in the licence application is already covered by a licence granted to another entity.
The licensing authority has the right to deny a licence if a decision has been issued which prevents the rights under the entrepreneur’s shares from being exercised pursuant to the Polish Act on Audit of Certain Investments of 24 July 2015 (Journal of Laws of 2023 No. 183 item 221, as amended), where this is a matter of public interest linked especially to national security or environmental protection, including rational mineral deposit management.
Duration of the process
Up to 1 month,
particularly complex cases – up to 2 months from process initiation (in the case of submitting a complete application together with all required documentation).
Authority competent for granting the licence
A thermal water extraction licence is in principle granted by the province marshal. However, a thermal water extraction licence is issued by the county administrator if the following requirements are jointly met:
- the documented deposit area not covered by a mining title does not exceed 2 ha;
- the extraction of the mineral from the deposit will not exceed 20,000 m3 in the calendar year;
- the activity will rely on surface mining and will not use blasting agents.
Licence validity period
The licence is granted for an indefinite term, not shorter than 3 years and not longer than 50 years, unless the entrepreneur requests a shorter term.
What is the fee for the licence?
A stamp duty for a thermal water extraction licence is PLN 616.
The stamp duty for an authorisation is PLN 17.
The stamp duty for a power of attorney is also PLN 17.
How to appeal?
After receiving a decision issued by the province marshal, the applicant has 14 days to appeal against the decision to the Minister competent for environmental matters. If the decision was issued by the county administrator, the applicable may appeal to the Local Appeal Body. Subsequent available remedies include a complaint to the Provincial Administrative Court and, as the next step, to the Supreme Administrative Court.
Can the application be filed online?
The applicable regulations do not provide for a possibility of applying online. However, some public administration bodies competent for the matter allow the applicants to use the ePUAP service.
This option should be checked before the submission of the application.