The Union of Turkish Public Notaries (“Union”) has clarified to notaries that a permit from the Ministry of Energy and Natural Resources (“Ministry”) is not required to execute royalty agreements between license holders and third parties. The Union issued an Information Letter dated 20 January 2016, in line with a related letter issued by the General Directorate of Mining Affairs dated 14 December 2015.

2015 amendments to Mining Law Number 3213 stated that a permit from the Ministry is required to execute royalty agreements between license holders and third parties before notaries. Accordingly, the Union declared in February 2015 that a permit from the Ministry was required to notarize royalty agreements.

However, upon learning that the Ministry actually issues the relevant permit after execution of royalty agreements, the Union asked the General Directorate of Mining Affairs at the Ministry (“General Directorate”) to clarify the situation, to ensure all notaries adopt a consistent approach.

The General Directorate clarified the situation in an information letter dated 14 December 2016. It stated that when a royalty agreement between license holders and third persons is delivered to the General Directorate to be entered in the mining registry, the General Directorate evaluates such agreement in the light of the Mining Law and the Application Regulation for Mining Affairs. If the General Directorate finds the agreement appropriate, it will then send the agreement to the Ministry to obtain a permit (in accordance with Additional Article 7 of the Mining Law). Therefore, the General Directorate stated that since royalty agreements executed before notaries will not be submitted to the Ministry until after the General Directorate’s examination, notaries should not require a Ministry permit in order to notarize the royalty agreements.

Please see this link for the full text of the Union’s Information Letter (only available in Turkish).

Information first published in the MA | Gazette, a fortnightly legal update newsletter produced by Moroğlu Arseven.