Oleg Mitvol told RIA Novosti that Rosneft-Yuganskneftegaz is failing to implement the development terms of the license, including associated gas utilization procedures on the Priobskoye oil field in western Siberia.
Mitvol said that in line with the license, the company was to have utilized 95% of its associated gas by 2002, but in 2005, the figure was still only 1.9%.
The environmental watchdog, the Federal Service for the Oversight of Natural Resources, said some 1.3 billion cu m of associated gas was flared at the deposit in 2005.
The regulator said other violations included pollution of soil with oil, and unauthorized emissions of polluting gases.
Rosneft was not immediately available for comment.
The Priobskoye oil field's proven reserves total some 700 million metric tons (5.14 billion bbl). Crude production in 2005 totaled around 20.5 million metric tons (412,808 bbl/d).
Earlier, Yuganskneftegaz, formerly the core production unit of bankrupt oil company Yukos, announced plans to implement an associated gas utilization program at a cost of 17 billion rubles ($640.1 million), including the construction of two compressor plants and a gas-turbine unit, to enable full processing of the gas.
Russian regulators have carried out several crackdowns on oil companies in recent months.
Royal Dutch Shell, TNK-BP, and Russia's LUKoil have all faced possible license revocation over breaches of environmental rules and contract agreements.
