Republic of Lithuania                                     
                               Law                                              
                                                                                
                                                                                
                 Taxes on State Natural Resources                               
                                                                                
                                                                                
     In the  Republic of  Lithuania, taxation  on  State  natural               
resources shall  be a  form of  realization of  natural  resource               
ownership.                                                                      
     The objective  of this law is to increase the responsibility               
of users  of natural  resources for  the effective and economical               
utilization  of   the  national  resources  which  are  at  their               
disposal, and  to compensate the amount spent by the State on the               
investigation  of   natural  resources   and  on   the   measures               
implemented for  the  preservation  of  the  amount  and  quality               
thereof.                                                                        
                                                                                
           1. Object of Taxation and Taxable Entities                           
                                                                                
     Article 1.                                                                 
                                                                                
     State natural  resources shall be taxable objects. Taxes not               
prescribed by this law shall be established by other laws.                      
                                                                                
     Article 2.                                                                 
                                                                                
     Taxable  entities  liable  to  taxation  for  State  natural               
resources shall  be natural  and legal  persons  acquiring  State               
natural resources  of the  Republic of  Lithuania in  the  manner               
prescribed by law.                                                              
                                                                                
   2. Rates of Taxes and the Procedure for their Establishment                  
                                                                                
     Article 3.                                                                 
                                                                                
     Legal and natural persons shall pay taxes at the established               
rate according  to the amount and quality of the acquired natural               
resources.                                                                      
                                                                                
                        3. Tax Deductions                                       
                                                                                
     Article 4.                                                                 
                                                                                
     Land users  who utilize  raw materials for the manufacturing               
of construction  materials, or  who utilize  water extracted from               
the allotted  plot of  land for  economic  (ie.  not  commercial)               
needs, shall be exempt from taxes.                                              
                                                                                
             4. Procedure and Control of Tax Payment                            
                                                                                
     Article 5.                                                                 
                                                                                
     The amount  of tax  due shall be calculated according to the               
established form,  and shall  be paid  by the  users  of  natural               
resources.                                                                      
                                                                                
     Article 6.                                                                 
                                                                                
     Taxes shall  be paid  once every  three months, on or before               
the 15th  day of  the first  month of  the next calendar quarter.               
Taxes shall  be payed  in  advance,  and  in  equal  installments               
computed from  the total  amount of tax due for the given taxable               
year; the  total amount  of tax  shall be  computed based  on the               
amount of  resources expected  to be  used. At  the close  of the               
taxable year,  the amount  of tax  shall be computed based on the               
amount of  the extracted resources, and shall be submitted to the               
State Tax Inspectorate either on or before the 1st of February of               
the following year.                                                             
                                                                                
     Article 7.                                                                 
                                                                                
     The Department  of Environmental  Protection of the Republic               
of Lithuania  shall control  the validity  of  tax  computations.               
Taxes shall  be imposed for any concealed resources, and economic               
sanctions shall  be applied by increasing the established rate of               
tax tenfold.                                                                    
                                                                                
     Article 8.                                                                 
                                                                                
     Legal  and   natural  persons   who  fail   to  fulfill  the               
computation of  State natural  resources in the prescribed manner               
shall use  an amount of State natural resources as established on               
the basis of State environmental protection control data.                       
                                                                                
     Article 9.                                                                 
                                                                                
     If a  tax is  not imposed  on time,  the taxpayer  shall  be               
liable for  taxes not  exceeding the  amount of the two preceding               
years. The  period for  making corrections  in an  inaccurate tax               
computation, as  well as  for the  refund or recovery of the tax,               
shall be two years.                                                             
                                                                                
     Article 10.                                                                
                                                                                
     Failure to  pay the  required tax  on time shall subject the               
taxable entity  to liability  for interest  at the  rate  of  0.5               
percent for each day that the tax remains unpaid.                               
                                                                                
     Article 11.                                                                
                                                                                
     Taxes on  State  natural  resources  shall  be  included  in               
production costs and shall be paid to the State Budget.                         
     Upon application  of economic  sanctions, amounts  shall  be               
recovered from  the surplus  profit of  the taxpaying  entity and               
shall be paid to the State environmental protection fund.                       
                                                                                
                                                                                
Vytautas Landsbergis                                                            
                                                                                
President Supreme Council                                                       
Republic of Lithuania                                                           
                                                                                
                                                                                
Vilnius                                                                         
21 March 1991                                                                   
No. I-1163