The Verkhovna Rada of Ukraine issued the law about gas (methane) from coal deposits to define the legal, economic, environmental and organisational framework for activities related to geological exploration of coal mine methane (CMM), including research and industrial development, mining and extraction during degasification and future use of the resource. State policy on the exploration, extraction and use of CMM is based on the following principles:
- Government regulation of CMM capture and utilisation
- Improvement of safety and efficiency of operation of facilities that capture and use CMM
- Protection of the rights and interests of all related stakeholders
- Promotion of competition in the field of CMM capture and utilisation
- Improvement of the environment
- Sustainable use of mineral resources.
Article 11 of the law seeks to stimulate uptake of CMM exploration, capture and utilisation by creating attractive investment conditions backed by state guarantees and tailoring CMM project approaches at specific facilities. Furthermore, it provides tax incentives to businesses engaged in these activities, including a temporary income tax exemption that lasted until 2020. The tax code was amended in 2017 (Document No. 2245-VIII) to reflect this, exempting coal mine methane from taxation.
Article 12 of the law addresses environmental safety concerns, prohibiting coal mining in areas containing high concentrations of methane without the implementation of ventilation or degasification measures.