Act XXIII of on Minimum Stocks of Imported Crude Oil and Petroleum Products. 1. Interpretative provisions

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1 Act XXIII of 2013 on Minimum Stocks of Imported Crude Oil and Petroleum Products With a view to safeguarding the continuous and secure supply of energy for Hungary, and to improving the efficiency of taxation as regards the distribution of petroleum products through laying down regulations on the obligation to maintain minimum stocks of imported crude oil and petroleum products in an objective and nondiscriminatory manner, through monitoring inland consumption so as to provide solid grounds for the calculation of membership contributions, through the marking and control of petroleum products released for free circulation, imported and used, and through the ensuring the availability of emergency stocks in cases of particular urgency or crises in the supply of crude oil, Parliament has adopted the following Act in compliance with the relevant legislation of the European Union: 1. Interpretative provisions Article 1 For the purposes of this Act: 1. emergency oil stocks means the minimum stocks of crude oil and petroleum products defined in the first paragraph of Section 3.1 of Annex C to Regulation (EC) No. 1099/2008 of the European Parliament and of the Council of 22 October 2008 on energy statistics that must be maintained in accordance with this Act; 2. effective international decision to release emergency oil stocks means any decision taken by the Governing Board of the International Energy Agency to make crude oil or petroleum products available to the market by a release of its members stocks and/or additional measures; 3. major supply disruption means a substantial and sudden drop in the supply of crude oil or petroleum products to the European Union or to a Member State, irrespective of whether or not it has led to an effective international decision to release stocks; 4. physical accessibility means arrangements for locating and transporting crude oil stocks to ensure their release or effective delivery to end users and markets within time frames and conditions conducive to alleviating the supply problems which may have arisen, and for making arrangements for maintaining and managing stocks; 5. local crisis in the supply of crude oil and petroleum product means a situation where import supplies for inland consumption drop by up to 7%, and demand for inland consumption can only be satisfied from the emergency oil stocks, as well as a situation when the European Union or the International Energy Agency introduces emergency measures, such as taking an international decision to release emergency oil stocks; situations caused by price developments of crude oil or petroleum products shall not be construed as local crisis in the supply of crude oil and petroleum product. 2. Calculating the level of emergency oil stocks, calculating specific oil stocks, storage and use of emergency oil stocks Article 2 (1) Emergency oil stocks shall be maintained by way of the means and in the quantity defined by this Act, based on the average daily net imports of refinery feedstocks and petroleum products defined in Annex 1, in the period specified in Paragraph (2). (2) The average daily net imports shall be determined: a) as regards the period from 1 January to 31 March of each calendar year, on the basis of the last year but one before the calendar year in question, b) as regards the period from 1 April to 31 December of each calendar year, on the basis of the year before the calendar year in question (hereinafter referred to as reference year ).

2 (3) The level of average daily net imports shall be calculated by the Hungarian Association for the Stockpiling of Hydrocarbons (hereinafter referred to as Association ) by 31 March of each year, based on the calculation method defined in Annex 1. Article 3 (1) The Association shall calculate the levels of emergency oil stocks based on the crude oils and petroleum products referred to in Annex 2, using the methods defined therein, also in accordance with Paragraphs (2) and (3). (2) The composition of the emergency oil stocks held shall be determined in due consideration of the security of energy supply for Hungary, its dependency in oil imports, on indigenous production and processing of oil, and in accordance with product consumption indices. (3) At least one-third of emergency oil stocks shall be held in the form of petroleum products composed in accordance with subparagraphs b) f) of section 1 of Annex 2, except if the Governing Body of the Association (hereinafter referred to as Governing Body ) imposed the obligation to maintain specific oil stocks. (4) The level of emergency oil stocks maintained between 1 August of each year until 31 March of the following year shall correspond to 90 days of average daily net imports calculated according to Article 2(2) and (3). (5) The stocks held in excess of the 90 days of average daily net imports may be sold during the given year by decision of the Governing Body taking into account the foreseeable level of stockholding obligation. Such sale shall not be permitted to disturb the functioning of the market. If the Governing Body decides to allow such sales, the Association shall publish a sales notice on its website. (6) Emergency oil stocks shall be the property of the Association. (7) Emergency oil stocks may be released only upon prior written authorisation by the Association. Article 4 (1) The Association shall be entitled to maintain specific oil stocks if the Governing Body so decides. Specific oil stocks shall maintained by way of the means and in the level specified in Annex 3, comprised of the petroleum products defined therein. (2) Any oil stocks may be included simultaneously in both the emergency oil stocks and specific oil stocks, provided that those oil stocks satisfy all the conditions laid down in this Act for both types of stocks. Article 5 (1) The Association shall keep separate and up-to-date records on emergency oil stocks and specific oil stocks both, and shall safeguard the data of those records for a period of 5 years from the time of entry. (2) The records shall contain: a) the name of the site of the storage facility; b) the quantities of stocks held; c) description of the crude oil and petroleum products included in the stocks. (3) The minister in charge for energy policies (hereinafter referred to as Minister ) shall have access to such records at any time. Article 6 Emergency oil stocks and specific oil stocks may not be pledged as collateral. Article 7 Emergency oil stocks shall be held and maintained in authorised and technologically tested storage facilities, which are in conformity with the relevant safety and environmental regulations, and which are suitable: a) to preserve the quality of crude oil stocks, b) to guarantee the availability and control of crude oil stocks at any given time, c) to ensure physical accessibility to crude oil stocks, and their discharge and storage, in the interest of stockholding and enabling the release of stocks. Article 8 (1) The Association shall be able to maintain emergency oil stocks and specific oil stocks in the territory of other Member States of the European Union on the basis of intergovernmental agreement. Operators from other Member States of the European Union shall be able to discharge their stockholding obligation in the territory of Hungary. (2) If an operator from any Member State of the European Union maintains emergency oil stocks in the territory of Hungary, those stocks shall be controlled at all times by such operator on which the stockholding obligation has been imposed. (3) Where a resident natural or legal person, or unincorporated business association (hereinafter referred to as economic operator ) wishes to hold in the territory of Hungary emergency oil stocks or specific oil stocks on behalf of an operator from any Member State of the European Union on which stockholding obligation has been imposed, the relevant contract must be authorised by the Minister.

3 (4) The Association shall publish information on its website on free storage capacities for each category of petroleum products, including the conditions for the allocation of such capacities. (5) If stocks are held by way of delegation received from another Member State of the European Union, such delegation may not be subdelegated. Article 9 (1) In the event of the balance of supply and demand of crude oil and petroleum products being disrupted and if demand of consumption exceeds the potential resources of procurement, the Minister shall be authorised to impose measures by way of a decree for restricting consumption to extent deemed commensurate to restore the balance. (2) Emergency oil stocks may be released in the event of a major supply disruption, in a local crisis in the supply of crude oil and petroleum product or in the event of any difficulty in the supply of fuels (heating oil, fuel oil, natural gas) in accordance with the Minister s decree. (3) The decree referred to in Paragraph (2) shall contain: a) a description and quantity of the crude oil and petroleum product permitted to be used; b) the deadline for having the released quantities replaced, and the itemised list of products involved. (4) In the decree referred to in Paragraph (2) the Minister may: a) specify the purpose of use; b) specify the time table for use of the quantities released; c) authorise priority access for users major suppliers operating at the national level to released emergency stocks; d) impose restrictions on consumption; e) prescribe for operators of petroleum refineries the minimum yield and schedule in respect of having the released stocks to be processed on contract basis. (5) The stocks released under Paragraph (2) shall be sold by the Association in compliance with the method and conditions prescribed in the decree. (6) Crude oil and petroleum products shall be sold at a price to sufficiently cover the estimated costs of having the stocks replenished. (7) Upon the release of emergency oil stocks the Minister shall forthwith notify the European Commission (hereinafter referred to as Commission ) and the International Energy Agency in accordance with Act XXXIX of 1999 on the Promulgation of the Agreement on an International Energy Program signed at Paris on 18 November 1974, and its Protocols, and on the Promulgation of Organisation for Economic Co-operation and Development (OECD) Council Decision on the Establishment of the Agency C(74)203 (Final) (hereinafter referred to as Act XXXIX of 1999): a) on the time when the emergency oil stocks drop below the compulsory minimum level, b) on the reasons for the release of stocks, c) on the measures implemented for having the released stocks replenished, d) on the expected levels of stocks until stocks are effectively replenished. Article 10 (1) In the Coordination Group for oil and petroleum products set up by the Commission Hungary will be represented by the Minister. (2) If the Commission carries out a procedure to review the emergency preparedness and stockholding of Hungary, the Minister shall delegate an officer to participate in the review from among the government officials of the ministry directed by the Minister. (3) In the reviews referred to in Paragraph (2) the Association and the authorities affected by the reviews shall cooperate with the Commission, and shall provide for the purposes of the review access to documents relating to the stocks as well as right of access to all sites on which stocks are held. (4) The government official partaking in the review referred to in Paragraph (2), the authority affected as under Paragraph (3), and the Association may not disclose any information which has been gathered during the review and which is covered by professional secrecy. Article 11 (1) The Minister shall prepare having regard to the provisions of Article 5, point 1 of Chapter II of the international treaty referred to in Section 2 of Act XXXIX of 1999 a contingency plan to be implemented in the event of a major supply disruption, and shall have it regularly updated. (2) At the Commission s request the Minister shall send a copy of the approved contingency plan to the Commission. 3. Hungarian Association for the Stockpiling of Hydrocarbons

4 Article 12 (1) The Association in its capacity as the central organisation for stockholding is responsible for the purchasing, storage and sale of emergency oil stocks, for setting up the requisite storage sites and for operating and maintaining these sites, and for discharging the functions delegated under Act XXVI of 2006 on the Minimum Stocks of Natural Gas (hereinafter referred to as Fbkt. ). (2) Furthermore, the Association is tasked to set up a system for marking and control with facilities for the observation of petroleum products referred to in Paragraph (3), released for free circulation, imported and used, with a view to determining the levels of emergency oil stocks according to Article 3(1) and to providing on a regular basis solid grounds for the calculation of membership contributions, and to improving the efficiency of taxation as regards the distribution of petroleum products. (3) In the interest of carrying out the function specified in Paragraph (2), the Association shall use markers for the products under headings , , , , , separately for each type of products for the purpose of control and for distinguishing them. (4) In carrying out the activities specified in Paragraphs (2) and (3) hereof, the distributors and importers of the petroleum products referred to in Paragraph (3) shall cooperate with the Association for the purposes of marking and control. Article 13 (1) The Association has legal personality and shall cover its operating expenses from its own revenues, and may use its revenues for covering the costs of stockholding, for acquiring sites for the storage of oils and petroleum products, or for setting up and for the maintenance of such sites, for acquiring ownership shares in storage companies and for loan payments, for covering the costs of marking and control and the Association overhead, and for covering the costs of carrying out the responsibilities delegated under the Fbkt. The Association shall not be subject to pay corporate taxes. (2) The Association s organisation is comprised of an oil and petroleum product stockholding section (hereinafter referred to as oil section ) and a natural gas stockholding section (hereinafter referred to as natural gas section ). Article 14 (1) The activity defined in Article 40(2) may be pursued only by an economic operator who is a member of the Association. (2) Association membership shall commence at the time of taking up the activity defined in Article 40(2). Membership in the Association is terminated if the member fails to pursue the activity subject to stockholding obligation for a period of one year or more. Article 15 In addition to the stocks released for supplying the users designated by the Minister for specific purposes under Article 9(4)c), members of the oil section shall be granted right of first refusal in respect of the released stocks, as commensurate according to their net membership contributions paid up as due based on the turnover of the calendar year preceding the year when such stocks were released. Net membership contribution means the amount of contribution paid, less any refund and/or deduction. Article 16 In addition to the activities of stockholding of natural gas prescribed in this Act and in the Fbkt., the Association is entitled to pursue only activities connected therewith, as defined in its Statutes. Article 17 (1) The Association shall operate on the basis of its Statutes approved by the Minister. (2) The following shall be defined in the Statutes of the Association: a) the seat of the Association; b) the organisational structure and operation of the Association; c) the detailed rules on the institution and termination of membership in the Association; d) rights and obligations of members of the Association that are not regulated in this Act, and the legal effects for any failure to meet such obligations; e) the detailed rules relating to the Association s financial management; f) procedures for the sale of released oil and natural gas stocks; g) the detailed rules concerning the contributions to be paid by members of the Association to the Association; h) detailed regulations concerning the system of stockholding of oil and petroleum products, such as: ha) arrangements for the identification, accounting and control of those stocks so as to allow them to be verified, hb) the procedure for determining the composition of stocks held and the method for setting quantitative and qualitative specifications and requirements,

5 hc) the method of marking for the purpose of being able to determine the right of ownership of stocks, or any part thereof, and for ensuring their exemption from enforcement proceedings; i) the frequency, method and system of the replacement of stocks of crude oil and petroleum products for the purpose of the preservation of the quality of those stocks, including the provisions regarding normative losses and replacement thereof, and quality control procedure relating to natural gas stocks; j) the rules of electronic communication between members and the Association, including provisions on downtime; k) the detailed rules concerning the natural gas stockholding system; l) the Association s obligation of disclosure of information; m) the amount of interest and security payable if deferred payment is authorised pursuant to Article 38(3), and the criteria for the assessment of requests for deferred payment; n) the detailed rules relating to the financial security requirement under Article 40(6); o) all matters prescribed by this Act and by the Fbkt. as mandatory. (3) The Association s Statute shall be published in the Official Bulletin of the Hungarian Gazette, and also on the Association s website. (4) The Association s Statute, and any amendment thereto, shall enter into effect at the time of publication in the Official Bulletin of the Hungarian Gazette. Article 18 The organs of the Association are the General Meeting, the Governing Body, the Supervisory Board and the Executive Board. 4. General Meeting Article 19 The supreme body of the Association is the General Meeting, which consists of all the members of the oil and natural gas sections. Article 20 (1) The General Meeting shall convene twice annually (ordinary general meeting). (2) An extraordinary general meeting shall be called if so requested in writing by the members holding at least 15% of the total of votes, specifying the reason and purpose thereof. (3) The Director shall inform the members on the calling of the General Meeting at least 4 weeks prior its scheduled date, along with the proposed agenda. (4) The General Meeting shall have quorum if attended in both sections by the number of members representing more than 50% of the total of votes. (5) If the General Meeting does not have quorum, the second General Meeting scheduled within 8 days shall be deemed to have quorum in respect of the matters included in the original agenda, regardless of the number of members present and their percentage of votes. Article 21 Duties of the General Meeting are: a) approval and amendment of the Statutes of the Association; b) election and removal of members of the Governing Body and the Supervisory Board, to determine the remuneration of members, and the election and removal of the Director and the Deputy Director; c) deciding on all matters delegated under the competence of the General Meeting by this Act, the Fbkt. or by the Statutes. Article 22 Decisions of the General Meeting in the matters described in subparagraphs a) and b) of Article 21 shall be adopted on the basis of a two-thirds majority of the members present. Other matters, unless qualified majority is required by the Statutes, shall be decided by simple majority of votes of the members present. Article 23 (1) In respect of the decision making process of the General Meeting, all members of the Association is entitled to one vote each, which accounts for 50% of the total of votes. The other half of the votes is distributed among the members of the two sections in the proportion of membership contributions paid by each member during the previous calendar year. (2) In matters relating to emergency stocks of oil and petroleum products, the majority vote of all members of this section, and in matters relating to emergency stocks of natural gas, the majority vote of all members of the natural gas section is required as a pre-condition for the General Meeting resolution to take effect.

6 5. Governing Body Article 24 (1) The Governing Body shall: a) submit the annual budget proposal of the Association to the General Meeting; b) submit the report concerning the implementation of the previous year s budget of the Association to the General Meeting; c) motion to the General Meeting in connection with the appropriation of the revenue surplus or savings, achieved in the annual budget which are due to the Association; d) approve the Standard Terms and Conditions of the Association; e) make recommendation to the General Meeting in connection with any borrowing that may be necessary for carrying out the duties delegated in this Act; f) oversee the activities of the Executive Board; g) authorise the inspection defined in this Act to be conducted; h) discuss all matters presented by the Executive Board; i) make recommendation to the Minister for initiating the action defined in Article 9; j) make recommendation as to the persons for the Director and Deputy Director. (2) The Governing Body shall be entitled to request information from, and to give instructions to, members of the Executive Board. (3) The person nominated by the Executive Board for the office of Director or Deputy Director must be supported by the Minister, the minister in charge of public finances and by at least three members of the Hungarian Energy and Public Utility Regulatory Authority(hereinafter referred to as MEKH ). Article 25 The Governing Body shall comprise fourteen members. The General Meeting shall elect six members from the oil section, and four members from the natural gas section for a term of three years. As for the other four members, two shall represent the Minister, and one each the minister in charge of public finances and the MEKH. Article 26 The Governing Body shall elect a Chairman and a Deputy Chairman from among its members. Election shall be decided by simple majority of votes. Article 27 If the term of an elected member of the Governing Body is terminated before the end of the period defined in Article 25, a new member shall be elected for the remaining period of time. The new member shall be elected during the next General Meeting. Article 28 (1) The Governing Body shall have quorum if attended by at least eight members, representing 50% of both sections. (2) The Governing Body shall, in general, make its decision by simple majority of votes, and the event of a tie the Chairman shall have the casting vote. The nomination of a new member to the Executive Board, as defined in Article 30(2), shall require a two-third majority of votes of the members present. (3) In matters relating to emergency stocks of oil and petroleum products, the majority vote of all members of this section, and in matters relating to emergency stocks of natural gas, the majority vote of all members of the natural gas section is required as a pre-condition for the general meeting resolution to take effect. 6. Supervisory Board Article 29 (1) The Supervisory Board shall comprise seven members. Two members of the Supervisory Board shall be delegated by the Minister, one member by the minister in charge of public finances, one member by the president of the Hungarian Energy and Public Utility Regulatory Authority, two members by the oil section and one member by the natural gas section; they shall be appointed by the General Meeting for a term of three years. The members shall elect a chairperson from among themselves. The Supervisory Board shall have quorum if at least four of its members are present. The Supervisory Board shall adopt its resolutions by simple majority and in the event of a tie the Chairman shall have the casting vote. The Supervisory Board shall establish its own rules of procedure, subject to approval by the General Meeting.

7 (2) The Supervisory Board shall oversee the activities and operations of the Association under the principle of lawfulness. (3) In exercising the oversight referred to in Paragraph (2), the Supervisory Board shall: a) examine all motions on the agenda of the General Meeting related to business policy decisions; b) examine all motions presented, which fall within the exclusive competence of the General Meeting; c) examine the annual accounts specified in Act C of 2000 on Accounting (hereinafter referred to as Számvtv. ). (4) The General Meeting shall decide the issues referred to in subparagraphs a) and c) of Paragraph (3) upon receipt of the written report of the Supervisory Board. (5) The Supervisory Board falls within the supervision of the General Meeting, and shall report to the General Meeting on its activities. Members of the Supervisory Board may attend sessions of the General Meeting in an advisory capacity. Remuneration for members of the Supervisory Board shall be determined by the General Meeting. The provisions of Article 23(1) and (2) and Article 25 of Act IV of 2006 on Business Associations on conflict of interest shall apply to members of the Supervisory Board. (6) Members of the Supervisory Board must proceed in person. Members shall be entitled to request information and reports from the directors of the Association, and shall be allowed access to the Association s books and documents. (7) If the activity of the Association is contrary to the law, to the Statutes or its own resolutions, the Supervisory Board shall be entitled to call the extraordinary general meeting and to contribute to the agenda. (8) If the term of a member of the Supervisory Board is terminated before the end of the period defined in Paragraph (1), a new member shall be elected for the remaining period of time. The new member shall be elected during the next General Meeting. (9) The Supervisory Board shall report to the Minister as deemed necessary, in any case at least once in a half-year period. 7. Executive Board Article 30 (1) The General Meeting shall elect the Director and Deputy Director of the Association on a recommendation by the Governing Body (hereinafter referred to as members of the Executive Board ). The Director shall manage the affairs of the Association, and the Deputy Director shall have full authority when substituting for the Director in his absence. The General Meeting shall appoint the Director and Deputy Director for an unspecified period of time. (2) The General Meeting shall have powers to dismiss the Director and Deputy Director on grounds defined by the Statutes of the Association. If the mandate of the Director or Deputy Director is terminated, the Governing Body shall be entitled to nominate a new member to the Executive Board, who will then be confirmed in his position by the General Meeting at its next session, or a new member shall be elected by the same. Article 31 The Director: a) shall provide for the management of the Association, and shall exercise employer s rights; b) shall prepare the drafts of the annual budget of the Association, and the report concerning the implementation thereof, and shall submit such drafts to the Governing Body; c) shall decide on matters concerning the Association which are not within the competence of other bodies; d) shall forward the resolutions of the General Meeting to the Minister, and the annual budget of the Association and the report concerning the implementation thereof to the Minister and to the minister in charge of public finances; e) shall, unless this Act otherwise provides, represent the Association; f) may enter into an agreement with a business association registered in Hungary for carrying out the duties defined in Article 12(2) and (3), provided that this is seconded by the Minister, the minister in charge of public finances, and by at least three members of the Governing Body of MEKH. 8. Financial management of the Association Article 32 (1) The Association is an organisation operating on the basis of its annual budget in accordance with the Számvtv. The Association shall prepare annual accounts concerning its financial affairs for the fiscal year ending on the 31st of December of each year.

8 (2) The regulations on double-entry bookkeeping shall be apply regarding Association s accounting system. The provisions of the Számvtv. shall apply in due consideration of Article 37 hereof. (3) The Association shall keep records of its assets and liabilities, income and expenditures for its activities in maintaining emergency stocks of oil and petroleum products, and emergency stocks of natural gas, and also separate from its other activities, and shall include them in the notes to the annual accounts. Costs and expenses not directly connected to stockholding activities shall be charged to activities in maintaining emergency stocks of oil and petroleum products and to activities in maintaining emergency stocks of natural gas equally. Article 33 (1) The assets necessary for stockholding and for increasing existing stocks, and for the operation of the Association, including its other tasks, based on the annual budget, shall be made available to the Association by the members in the form of cash contributions. (2) The Association may use credit, to the extent approved by the General Meeting, for the fulfilment of its duties defined in this Act. The interest on such credit shall be shown under operating costs. (3) The Association shall, in its annual budget, provide for: a) the foreseeable costs of maintaining emergency oil and natural gas stocks; b) the foreseeable costs of discharging the duties defined in Article 12(2) and (3); c) its foreseeable operating expenses. (4) The Association shall plan its revenue from membership contributions so as to cover the foreseeable expenditures referred to in Paragraph (3), taking also into account the Association s other income from sources other than membership contributions. Income from the sale of stocks may be used only for loan payments or for the purchase of new stocks. (5) The Association shall define the unit rate of members contribution broken down by product groups on the basis of the annual budget, calculated in consideration of the following: a) the unit rate of members contribution broken down by product groups allocated for discharging the duties defined in Article 12(2) and (3) may not be less than 1% of the average monthly fuel price published by NAV according to Article 82(2) of Act CXVII of 1995 on Personal Income Tax, as applicable for the first six months of the year when the budget was approved by the General Meeting; b) if the proceeds acquired under subparagraph a) from the unit rate of members contribution broken down by product groups is more than the amount required for discharging the duties defined in Article 12(2) and (3), the surplus shall be taken into consideration for determining the final unit rate of members contribution broken down by product groups. (6) The Minister shall publish the unit rate of members contribution broken down by product groups in the Official Bulletin of the Hungarian Gazette. Article 34 (1) The Executive Board shall prepare the budget for the following year by 30 November, subject to approval by the General Meeting. (2) The budget may be presented to the General Meeting subject to prior consent by the Minister, the minister in charge of public finances and representatives of the Governing Body of MEKH. Article 35 (1) The Association shall, on approval of its annual account by 31 May of the following year review its budget defined in Article 33. (2) If the General Meeting does not accept the annual account submitted by the Executive Board, the representative of the minister in charge of public finances in the Governing Body shall initiate an investigation to be conducted by the State Audit Office. Article 36 (1) The Governing Body shall be able to modify the unit rate of members contribution broken down by product groups within a calendar year on one occasion, except where a second revision becomes necessary on account of a local crisis in the supply of crude oil and petroleum product. (2) The Governing Body shall modify the unit rate of members contribution broken down by product groups, if the Association is likely to become insolvent in the absence thereof. Article 37 (1) The Association shall prepare annual accounts for the financial year coinciding with the calendar year at the latest by 31 May of the year following the year under review. The detailed, numerical and textual explanation of the execution of the budget shall be included in the annual report. (2) The balance sheet shall be prepared in the layout and with the contents prescribed in Annex 1 to the Számvtv., drawn up in a breakdown specified in the Statutes of the Association.

9 (3) The profit and loss account shall be prepared in the layout and with the contents prescribed in Annex 2 to the Számvtv. The breakdown of profit and loss account similar to the annual budget is contained in the Statutes of the Association, in due consideration of Paragraph (4) hereof. (4) The Association shall record payments of membership contributions under other income. (5) The Association shall publish its annual account on its website. 9. Recovery and accounting of the Association s receivables Article 38 (1) In respect of the mandatory contributions payable to the Association the provisions of the Act on the Rules of Taxation shall apply subject to the exceptions set out in this Act, with the proviso that such contributions shall be collected by the Association. (2) The members in arrears of payment of membership contributions and those deducting or reclaiming contributions without legal grounds shall be subject to pay interests in the amount of the default penalty prescribed by the Act on the Rules of Taxation. (3) In exceptional and duly justified cases, the Governing Body may grant a respite for recovering the Association s receivables, subject to interest charges and financial security. The rate of interest and financial security, and the criteria for the assessment of requests for respite of payment are laid down in the Statutes. Article 39 (1) The Director of the Association shall issue a resolution to order the member being in arrears to satisfy the obligation in due time. In the event of such resolution s failure to produce results before the specified deadline, the Director of the Association shall initiate an enforcement procedure or may request the opening of insolvency and liquidation proceedings against the member in question. (2) The member, if wishing to dispute the findings of the resolution, may file an appeal in accordance with the general provisions of the Code of Civil Procedure at the court within 30 days of receipt of the resolution. Filing such appeal shall have no suspensory effect in respect of the collection of overdue receivables, however the court, upon request, may suspend the execution proceeding. (3) The amounts paid in or collected in respect of debts owed to the Association shall be applied to the default penalty, to the costs incurred and to the membership contribution, in this order. 10. Rights and obligations of members of the oil section Article 40 (1) Members of the oil section shall be liable to pay membership contribution to the Association having regard to their operations for the distribution of petroleum products or to importation for their own use, where the unit rate broken down by product groups shall be determined according to Article 33(5). (2) Members of the oil section shall be liable to pay membership contribution on the quantities of petroleum products specified in Annex 4, if: a) an authorised tax warehouse operator, registered trader or authorised importer of excise goods, acting as such, upon releasing petroleum products for free circulation under the Excise Act; b) an authorised tax warehouse operator, acting as such, upon discharging petroleum products to an exempted user under tax suspension arrangements; c) an exempted user or authorised packaging operator, acting as such, upon the importation of petroleum products from a third country under tax suspension arrangements; d) a registered consignor, acting as such, upon dispatching petroleum products imported from a third country to an exempted user or authorised packaging operator under tax suspension arrangements under the Excise Act; e) an registered trader authorised to engage in Community trading, authorised tax warehouse operator or authorised packaging operator, acting as such, upon purchasing petroleum products released for free circulation in another Member State of the European Union, from this Member State; f) an authorised tax warehouse operator, acting as such, upon the use of petroleum products inside the tax warehouse, except if used for producing excise goods; g) an authorised tax warehouse operator, acting as such, upon filling petroleum products into the fuel tank of a vessel used for the carriage of passengers and goods under tax suspension arrangements. (3) The amount of membership contribution shall be calculated based on the quantity of petroleum products released for free circulation in the case of subparagraph a) of Paragraph (2), discharged in the case of subparagraphs

10 b) and g) of Paragraph (2), imported in the case of subparagraph c) of Paragraph (2), dispatched in the case of subparagraph d) of Paragraph (2), purchased in the case of subparagraph e) of Paragraph (2), or used in the case of subparagraph f) of Paragraph (2). (4) Membership contribution shall be paid in the case of subparagraphs a), c), e), f) and g) of Paragraph (2) by the authorised operator defined therein, in the case of subparagraph b) of Paragraph (2) by the authorised tax warehouse operator, and in the case of subparagraph d) of Paragraph (2) by the registered consignor. (5) Members shall record the membership contribution defined in Paragraph (1) under other operating charges. (6) In order to secure its revenue from membership contribution, the Association shall be entitled to request financial security. The amount of financial security shall be calculated based on the proposed turnover for new members, and in the case of members already operating on the basis of the average of membership contributions paid for three months on activities underlying membership, in an amount covering at least one and at most three months membership contributions due and payable. Financial security may be provided in cash or in the form of bank guarantee by a resident bank under the title of collateral. The detailed rules on financial security is contained in the Statutes of the Association. Article 41 (1) No membership contribution shall be paid, or the membership contribution paid up may be refunded in accordance with Article 42(3) in respect of those quantities of petroleum products specified in Annex 4, imported: a) for military purposes, b) for discharging the stockholding obligation of Hungary or another Member State of the European Union, or c) as verified, for use in the chemical industry or for lubrication or corrosion protection purposes, including if sold directly to the end user. (2) No membership contribution shall be paid, or the membership contribution paid up may be refunded in accordance with Article 42(3) in respect of those quantities of petroleum products specified in Annex 4, imported by an organisation providing commercial air transport service for its aircraft of foreign or Hungarian registry, used in international routes, or if sold to such organisation for the same purpose, or if held in reserve by the airline for its own purposes. Article 42 (1) Members shall disclose to the Association by the 15th of each month the quantity of petroleum products covered by this Act they have released for free circulation, discharged, imported, dispatched, purchased, used or filled in the fuel tanks of vessels in the previous month, serving as basis for the membership contribution payable. At the Association s request, members shall disclose all data and supply all documents without delay, which are required for verifying compliance with the obligation of payment of membership contribution. (2) Based on the data provided in the monthly disclosure defined in Paragraph (1), members shall calculate the amount of membership contribution due and payable, and shall transfer such amount to the payment account of the Association by the last working day of the month. The date of payment of the membership contribution shall be the day when it is credited to the account of the Association. (3) Membership contribution paid on petroleum products identified by the Combined Nomenclature (hereinafter referred to as CN ) headings referred to in Annex 4, if sold or used for the purposes defined in Article 41, may be refunded upon request submitted to the Association within 90 days from the date of payment of the membership contribution. The quantity of any petroleum product of a specific CN heading, on the basis of which refund is requested, may not exceed the total quantity of such petroleum products indicated in the declarations submitted for the previous 90-day period, falling under the obligation of payment of membership contribution. The Association shall assess refund applications within 15 days of the date of receipt and the date of confirmation of use as shown in the books, and shall credit or transfer the amount of refund within the same timeframe. Refund may be provided on condition that it shall not result in any debt on the member s part toward the Association. (4) Members may deduct the membership contributions paid on basis of petroleum products sold abroad from the membership contribution falling due, within 90 days of such products being exported. (5) Members shall be required to submit the pertaining documents and records to credibly prove the legitimacy of refund or deduction of membership contributions. The combined amount of such refunds and deductions for one year may not exceed the amount of membership contribution paid by the member. (6) Other regulations that are not addressed in Paragraphs (2) (5) shall be governed in the Statutes pursuant to Article 17(2)g). (7) (8) Members shall submit the declaration referred to in Paragraph (1) to the Association by way of electronic means.

11 (9) In order to verify the data supplied, the Association shall send the declarations referred to in Paragraph (8) to the National Tax and Customs Authority (hereinafter referred to as NAV ) electronically. If found authentic, NAV shall affix its seal of approval on the declaration, and shall send it to the Association, and to the member via the Association. (10) Members of the oil section shall consult with the competent NAV audit body, if NAV refused to declare the data supplied in the declaration authentic. Article 43 At the member s request, the Association shall make out a certificate on the member s compliance with the obligation of disclosure to the Association and with the obligation of payment of membership contributions. 11. Cooperation with NAV, the MEKH and with the Central Statistics Office Article 44 (1) When so requested by the Association, the NAV, the MEH and the Central Statistics Office shall supply information based on the data available: a) for determining the level of emergency stocks; b) for checking payments of membership contributions; c) for discharging the Association s obligation of data disclosure, concerning the quantities of crude oil and petroleum products covered by this Act they have released for free circulation, discharged, imported, dispatched, purchased, used or filled in the fuel tanks of vessels, exported or withdrawn from free circulation. (2) The data supplied by the Central Statistics Office may not include specific data defined by the Act on Statistics. (3) The Association shall make available to NAV the information it obtains during audits. 12. Supervision of the Association, control Article 45 (1) The Association shall be supervised by the Minister. (2) The Minister within his supervisory competence: a) shall approve the Statutes of the Association, and any amendments thereto, b) shall order the Governing Body to call the General Meeting when finding any resolution of the bodies of the Association unlawful, c) may request the Association to provide information and may impose reporting obligation upon the Association, d) may inspect the documents of the Association. (3) In the case of an emergency, the Minister shall proceed in accordance with Act XXXIX of 1999, and shall: a) delegate an expert to the Commission s expert committee, b) shall notify the Commission of the actions taken. Article 46 (1) The Association shall, through its appointed inspectors (hereinafter referred to as inspector ), check the authenticity of the information provided by the members according of Article 42, as well as the existence of markers of fuels at retail and end users filling stations, and whether its members are in compliance with the provisions of this Act and the Fbkt. (2) The inspector shall be entitled to enter the facilities and premises of the member, to inspect the documents in connection with inspection described in Paragraph (1), to conduct an investigation and to request information. (3) In the control procedures referred to in Paragraph (1), the member inspected shall supply all data and information and shall make available all documents which are required for the inspection of the member s activities and membership status. 13. Data disclosure Article 47 (1) As part of the disclosure procedure, the Minister, or the organisation the Minister has delegated shall inform the Commission or the International Energy Agency in accordance with the decree on international reporting

12 requirements on oil and petroleum products concerning the emergency oil stocks and information relating to stockholding. (2) By 25 February each year, the Minister shall disclose the data referred to in Article 5(2)b) and c), as pertaining to emergency stocks existing on the last day of the previous year to the Commission upon request, within 15 days upon receipt of the Commission s request. (3) If the Association maintains specific oil stocks by decision of the Governing Body, the Minister shall inform the Commission on the quantities and on the duration of stocks held. (4) At the Commission s request, the Minister shall disclose the data referred to in Article 5(2)b) and c), as pertaining to specific oil stocks, to the Commission within 15 days. (5) Insofar as specific oil stocks are not held, the Minister shall inform the Commission by 31 January each year concerning emergency stocks as regards the measures taken in the interest of: a) availability; b) physical accessibility; c) control, including control of use in the event of any major supply disruption. 14. Breach of members and other obligations, legal effects thereof Article 48 (1) If the inspection conducted according to Article 46 reveals any discrepancy, or based on the findings of the inspection the Association finds any infringement on the part of a member, moreover, if a member fails to satisfy the obligation of disclosure or reporting under Article 42(1), or does so improperly, the Association shall advise the member to restore compliance within the time limit prescribed. (2) In the event that the advise prove ineffective, or if there is reason to believe that the inspected person is unlawfully involved in the pursuit of activities underlying membership, the Association shall request the competent authority to take action. 15. Closing provisions Article 49 The Minister is hereby authorised to decree: a) measures for restricting consumption as under Article 9(1); b) the procedure for releasing emergency oil stocks under Article 9(2); c) the detailed rules for data disclosures; d) the rules relating to the contingency plan to be applied in the event of major supply disruption or in the case provided for section 1 of Article 5 of the international treaty referred to in Article 2 of Act XXXIX of Article 50 (1) This Act, with the exceptions set forth in Paragraph (2), shall enter into force on the first day of the month following promulgation. (2) Article 42(8) and (9) and Article 54(3) shall enter into force on 1 July Article 51 (1) The Association shall redraft and approve its Statutes in accordance with this Act in its first ordinary general meeting after the time of this Act entering into force. (2) The entry into force of this Act shall be without prejudice to the membership status of members of the Executive Board, the Governing Body and the Supervisory Board. Article 52 The Association shall rework the system for marking and control required for carrying out the duties delegated under Article 12(2) and (3) within six months from the time of this Act entering into force. Article 53 (1) Article 54(2) of this Act serves the purpose of implementing Commission Regulation (EU) No. 1286/2011 of 9 December 2011 adopting a common methodology for investigating marine casualties and incidents developed pursuant to Article 5(4) of Directive 2009/18/EC of the European Parliament and of the Council. (2) This Act except for Article 54(2) serves the purpose of compliance with Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products.