Recently, in order to deepen the reform of the management system for coalbed methane exploration and development and effectively prevent practices such as "land grabbing" and "acquiring rights without exploration" in the mineral rights market, the Shanxi Provincial Department of Finance, the Provincial Department of Natural Resources, the Provincial Tax Bureau, and the Shanxi Branch of the People's Bank of China jointly issued the “Interim Measures for the Collection of Coalbed Methane Mineral Rights Occupation Fees” (hereinafter referred to as the “Measures”), based on changes in coalbed methane prices and the needs of economic development. The “Measures” will take effect from January 1, 2024, with a validity period of three years.
　　The Measures stipulate that the fee for occupying coalbed methane mining rights is classified as non-tax government revenue and shall be strictly managed under the “separate accounts for revenues and expenditures” system. All such fees must be fully remitted to the state treasury and incorporated into general public budget management, with funds being centrally allocated for expenditures related to geological surveys and ecological protection and restoration of mining areas.
　　The fee for the occupation of coalbed methane mining rights is collected annually and paid on a yearly basis. The dynamic adjustment coefficient for the annual fee for the occupation of coalbed methane mining rights shall be jointly determined by the provincial finance department in collaboration with the provincial department of natural resources and the provincial tax authority. In principle, the dynamic adjustment coefficient for the fee for the occupation of coalbed methane mining rights shall be adjusted every three years and publicly announced before March 31 of the year in which the adjustment takes place.
　　The Measures emphasize that fiscal departments, departments in charge of natural resources, and tax authorities at all levels shall strengthen supervision and management over the collection of fees for the occupation of coalbed methane mining rights, and shall, in accordance with laws and regulations, include any instances of illegal or non-compliant behavior by relevant enterprises into the enterprise integrity system. Staff members of tax authorities, fiscal departments, and departments in charge of natural resources who fail to remit funds to the state treasury in a timely and full manner as required, abuse their powers, neglect their duties, or engage in favoritism and corruption shall be held accountable accordingly. If their actions constitute a crime, the cases shall be referred to the judicial authorities for prosecution.