Building a modern mechanism exemption budget in mining rent

This article discusses the nature and principles of operation of settlementprices used in the extractive industries in a planned economy. To do this the article focuses on the forms and types of settlementprices used in a planned economy, methods of determining the size, structure and components of the prices used in various sectors ofthe mining industry, as well as the types and forms of settlement centres used to organize the functioning of the mechanisms ofsettlement in prices. In a market economy, estimated prices may be used for creating a modern mechanism for the full collection ofthe rent for mountain usage to the state budget. The price for groups of extractive industries (oil fields) or any extractive industry isset up on the basis of the relative similarity of the natural conditions of mining operations on these fields. For groups of miningcompanies (deposits) rent will be installed on a single group settlement price that is based on mean group costs (production costsmean group) of minerals. The difference between the price fixed for the given group of deposits and the price fixed for groups ofmining companies (deposits) are in the worst conditions of production. The rent will be calculated basing on the mean groups ofcosts and expenses multiplied by the volume of production; the deposit and the rent would amount to the mountain rent for a givenfield. Thus, the proposed mechanism will be a separate way to collect mining rent to the state. The author also considers the locationand function of the centre, which is the basis of functioning of the proposed mechanism of collecting mining rent, and its stimulatingeffect on the decline in oil prices. There is a detailed discussion of the possible functions of the proposed settlement centre, such asthe definition of the geological and other conditions of production, distribution of oil fields in groups with similar, in terms ofnatural rents factors, conditions of extraction, and analysis of oil production costs in selected groups, the definition of future oilprices on domestic market, etc. The heterogeneity of the considered functions that the proposed settlement centres will executesuggests the feasibility of establishing a system of settlement centres (as it was in a planned economy) and their functional andterritorial divisions. The structure of oil prices also shows the location of rental income in the price structure of the oil industry.

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