MOSCOW, August 2 - RAPSI. The Fourteenth Commercial Court of Appeals has confirmed the court decision to dismiss the environmental watchdog's lawsuit to recover $16.93 million from Naryanmarneftegaz, the court told the Russian Legal Information Agency on Thursday.

Earlier, the Federal Service for the Supervision of Natural Resources contested in the appeals instance the Arkhangelsk Regional Commercial Court's decision refusing to recover the amount in question. The Arkhangelsk court issued the ruling on June 8.

The watchdog asked the court to obligate Naryanmarneftegaz to pay for disposing saline waste water generated from hydrocarbon production and oil treatment in the first and second quarters of 2007.

In July 2010, Naryanmarneftegaz had already paid 1.1 million rubles ($37,400) on the assumption that bottom water was a waste product. However, the watchdog sought $17.3 million, arguing that bottom water falls within the fourth hazardous class.

However, the court disagreed with the watchdog's arguments and the oil company produced its own calculations, proving that its payments were correct.

LUKOIL holds 70 percent of Naryanmarneftegaz and ConocoPhillips holds 30 percent.

The company is developing the South-Kliuchevskoe field in the Nenets Autonomous District. The field was discovered in 1981 with proved reserves estimated at over 500 million barrels.