Regulatory environment

The ORLEN Group operates on regulated markets. Consequently, regulatory compliance is a key aspect of its business.

The ORLEN Group has in place the 'Decision on the principles of managing regulatory risk in the ORLEN Group'. The document covers the Group’s operations in the context of the regulatory environment construed as the relevant international, EU and domestic laws. The Decision also incorporates the 'Model Instruction for regulatory risk management disclosures at the ORLEN Group', which has been adopted by all key companies across the ORLEN Group (except ORLEN Upstream). The purpose of the Instruction is to coordinate information flow and disclosure as part of the regulatory risk management process in the Group.

Information about fines/penalties and pending court/administrative proceedings is disclosed in financial reports on a quarterly basis. The materiality threshold is PLN 50m. Current reports filed with the WSE present information on proceedings concerning liabilities and receivables of PKN ORLEN and its subsidiaries if their value is equal to or exceeds 10% of PKN ORLEN's equity (currently PLN 1.78bn).


The key bodies in the Company’s regulatory environment in Poland are:

  • Ministry of Energy
  • President of the Material Reserves Agency
  • President of the Office of Competition and Consumer Protection / Trade Inspection Authority
  • President of the Energy Regulatory Office
  • Customs Service
  • Ministry of the Environment / Environmental Protection Inspection Authority

Security- MANDATORY STOCKS – every producer and trader of liquid fuels is legally required to create and maintain mandatory stocks of crude oil and fuels and to pay the mandatory stocks charge pursuant to the Act of February 16th 2007 on stocks of crude oil, petroleum products and natural gas, and on the rules to be followed in the event of threat to national fuel security or disruptions on the petroleum market, as well as secondary legislation thereto;

EU: Council Directive No. 2009/119/EC of September 14th 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products (OJ L 265/9 of October 9th 2009).

Quality- FUELS QUALITY – every producer of liquid fuels and every entity engaging in trade in liquid fuels, including trade in liquid fuels with foreign partners, is legally required to produce, market and sell only those liquid fuels which meet the quality specifications provided for in the Act of August 25th 2006 on fuel quality monitoring and control systems and secondary legislation thereto;

EU: Directive 98/70/EC of the European Parliament and of the Council of October 13th 1998 relating to the quality of petrol and diesel fuels and amended by Directive 2003/17/EC of the European Parliament and of the Council of March 3rd 2003.

Taxes- EXCISE TAX– liquid fuels marketed by their producers or traders, which are classified as energy products under the excise tax law, are subject to excise tax payable on the terms and in the amounts provided for in the Excise Tax Act of December 6th 2008 and secondary legislation thereto;

EU: Council Directive 2008/118/EC of December 16th 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC.


  • Industrial emissions – the Act of July 11th 2014 amending the environmental protection law and certain other acts, whose primary goal is to counteract the negative environmental impact of industrial plants through more effective reduction of emissions so as to achieve high level of protection of both human health and the natural environment while eliminating administrative barriers;

    EU: Directive 2010/75/EU of the European Parliament and of the Council of November 14th 2010 on industrial emissions (integrated pollution prevention and control).

  • Biofuels – NIT – all producers of petrol and diesel fuel and all entities engaging in trade in such liquid fuels with foreign partners consisting in their import and sale in Poland are legally required to implement the National Indicative Target for liquid biofuels in every calendar year, that is to ensure the minimum share of biocomponents and liquid biofuels in the total volume of petrol and diesel fuel produced in or brought to Poland, as specified in the Act of August 25th 2006 on biocomponents and liquid biofuels and secondary legislation thereto;

    EU: Directive 2009/28/EC of the European Parliament and the Council of April 23rd 2009 on the promotion of energy use from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC.

Under the regulatory risk management policy, PKN ORLEN and the other ORLEN Group companies engage in fully transparent and open dialogue based on applicable laws and engage in reviewing drafts of legislative solutions at the domestic and EU legislation levels. In an effort to ensure maximum transparency of the process in 2015, the Company launched an “OPINIONS” tab at, presenting positions of PKN ORLEN and industry organisations on changes in the regulatory environment and other key publicly debated initiatives.

To support the process of combating the grey market in liquid fuels in Poland, PKN ORLEN has joined the ‘Check your fuel supplier’ educational and information campaign initiated last year by the Polish Organisation of Oil Industry and Trade.


The key bodies in Unipetrol´s regulatory environment in the Czech Republic are:

  • Ministry of Industry and Trade
  • Ministry of the Environment
  • Ministry of Finance
  • Office for the Protection of Competition
  • Energy Regulatory Office
  • Customs Administration
  • Environmental Inspection
  • Commercial Inspection

Key legislation having influence on Unipetrol´s business on the Czech market:

  • Act on fuels and fuel stations n. 311/2006 Coll.
  • Excise Duty Act n. 353/2003 Coll.
  • Act on VAT n. 235/2004 Coll.
  • Act on business conditions and state administration in energy sectors and amending certain laws (Energy Act) n. 458/2000 Coll.
  • Act on Renewable Sources of Energy n. 165/2012 Coll.
  • Act on stabilization of public budgets (energy tax) n. 261/2007 Coll. – coal, CNG tax,
  • Air Protection Act n. 201/2012 Coll. – bio-duty,
  • Government notice on the criteria of sustainability of biofuels n. 351/2012 Coll.
  • Act on area Planning and Building Code (Building Act) n. 183/2006 Coll.
  • Water Act and amending certain laws n. 254/2001 Coll.
  • Waste Act n. 185/2001 Coll.
  • Act on Integrity Pollution Prevention and Control n. 76/2002 Coll.
  • Accidents Prevention Act n. 224/2015 Coll.
  • Environmental Impact Assessment Act n. 100/2001 Coll.
  • Labour Code n. 262/2006 Coll.


Regulatory environment of Germany’s ORLEN Deutschland:

  • Private/Civil Law – regulations concerning relations of individuals e.g. general civil law commercial law, company law, the right of intellectual property and competition law
  • Public Law – regulations concerning relationship of the individuals to the public authorities e.g. Constitutional Law, Administrative Law, Tax Law
  • Criminal Law as an independent part of public law is mainly regulated in the Criminal Code
  • Procedural Law is also an independent part of public law and deals with the judicial process to decide contentious legal relationships.

ORLEN Deutschland is subject to the following laws and regulations:

  • Sales of fuel: The main regulations are out of the areas No.1 (e.g. commercial law, company law, general civil law, competition law) and No. 2. (e.g. Construction/Building law, Pollution control law, waste law, German Water Act, soil conservation law, conservation law, laws on transport of dangerous goods, laws governing industrial safety, environmental- and consumer protection)
  • Non-fuel products / gastronomy: The main regulations are out of the areas No.1 (e.g. commercial law, company law, general civil law, competition law) and No. 2. (e.g. food law, etc.).

There are various main important local authorities and institutions, e.g. municipal administration (including building authorities, water management authorities, waste management authorities, etc.), state authorities (including data protection and security authority, etc.), and federal authorities (including Federal Cartel Office, etc.)


Lithuania’s ORLEN Lietuva’s regulatory environment:

  • Ministry of Energy
  • Ministry of Transport
  • Ministry of the Environment
  • Regulations governing energy producers
  • Regulations on licensing trade in fuels
  • Regulations on biofuels, fuel blending and fuel quality
  • Regulations on mandatory stocks and fuel reserves.


Canadian companies operating in the oil and natural gas industry are subject to extensive regulation and control of operations (including land tenure, exploration, development, production, refining and upgrading, transportation, and marketing) as a result of legislation enacted by various levels of government with respect to the pricing and taxation of oil and natural gas through agreements among the governments of Canada, Alberta, British Columbia, Saskatchewan, and New Brunswick, all of which should be carefully considered by investors in the oil and gas industry, including ORLEN Upstream Canada. All current legislation is a matter of public record. Outlined below are some of the principal aspects of legislation, regulations and agreements governing the oil and gas industry both federally and in the Provinces the ORLEN Group operates in.

Federal acts, regulations, and regulators

Acts and regulations

  • Canada Oil and Gas Operations Act
  • The Canada Petroleum Resources Act
  • Canadian Environmental Assessment Act

Federal regulators

National Energy Board – oversees the international and inter-provincial aspects of the oil, gas, and electric utility industries. It regulates the construction and operation of oil and natural gas pipelines that cross international or provincial borders.

Natural Resources Canada – is the federal ministry of natural resources. It develops policies and programmes that enhance the contribution of the natural resource sector to the economy. It seeks to enhance the responsible development and use of Canada's natural resources and the competitiveness of Canada's natural resources products.

Canadian Environmental Assessment Agency – is responsible for conducting environmental assessments under the Canadian Environmental Assessment Act.

Provincial acts, regulations, and regulators

Alberta Acts and Regulations

  • Mines and Minerals Act
  • Responsible Energy Development Act
  • Gas Resources Preservation Act
  • Oil and Gas Conservation Act
  • Pipeline Act
  • Environmental Protection and Enhancement Act

Alberta regulators

Alberta Energy (Ministry) – manages the development of Alberta's non-renewable resources, grants industry the right to explore and develop, and seeks to assure sustained prosperity through the stewardship of energy and mineral resource systems, responsible development, and wise use of energy.

Alberta Energy Regulator – is responsible for regulating the life cycle of oil, oil sands, natural gas, and coal projects in Alberta from application and construction to production, abandonment, and reclamation. Also conducts environmental assessments.

Natural Resources Conservation Board – is responsible for reviews of proposed major natural resource projects, and for the regulation of confined feeding operations in Alberta. As a decision maker, it strives to exemplify integrity and foresight in the best interests of Alberta.

Surface Rights Board – is a quasi-judicial tribunal that grants right of entry and assists landowners/occupants and operators resolve disputes about compensation when operators require access to private land or occupied crown land to develop subsurface resources such as oil, gas, and coal or to build and operate pipelines and power transmission lines.

New Brunswick acts and regulations

  • Oil and Natural Gas Act
  • Petroleum Act
  • Clean Environment Act

New Brunswick regulators

  • Department of Energy and Mines Resource/Exploration/Development/Management (Division)
  • Department of Environment
  • Local Government

British Columbia acts and regulations

  • Petroleum and Natural Gas Act
  • Oil and Gas Activities Act
  • Environmental Management Act

British Columbia regulators

  • Ministry of Natural Gas Development
  • Oil and Gas Commission
  • Surface Rights Board

Saskatchewan acts and regulations

  • Oil and Gas Conservation Act
  • Crown Minerals Act
  • Environmental Assessment Act
  • Environmental Management and Protection Act

Saskatchewan regulators

  • Ministry of Economy
  • Ministry of Environment.

See also

Macroeconomic factorsThe ORLEN Group and its environment

see more

Market environmentThe ORLEN Group and its environment

see more

Social environmentThe ORLEN Group and its environment

see more

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