NATIONALIZATION ENERGY AND COMBUSTIBLES
Act No. 14.773
He will be in charge of Y.P.F., State Gas and Fiscal Carbonifers deposits concerning solid, liquid and gaseous hydrocarbons, prohibiting the granting of new concessions.
Sanctioned: November 10, 1958.
Promulgated: November 12, 1958. BY How much?:
The Senate and Chamber of Deputies of the Argentine Nation gathered in Congress, etc., sanction with force
LEY:
ARTICLE 1
The solid, liquid and gaseous hydrocarbon deposits in the territory of the Argentine Republic and those of its submarine platform are exclusive, imprescriptible and inalienable property of the National State. The Provinces in whose territory they are and the National Territory of Tierra del Fuego, Argentinian Antarctica and South Atlantic Islands, will have their participation in accordance with the provisions of this law on their production. ARTICLE 2° -
The activities of the national State relating to the study, exploration, exploitation, industrialization, transport and commercialization of such hydrocarbons shall be the responsibility of the Petroliferous Public Prosecutors, Gas of the State and Carboniferous Public Prosecutors, which, to that end, shall enjoy full autarchy, shall have the powers determined in their organic regime and shall exercise their powers throughout the national territory. The provinces will integrate the senior management agencies of these entities.
ARTICLE 3° - Existing rights in favour of individuals as at 1 May 1958 on the deposits and activities mentioned in the previous articles will be respected.
ARTICLE 4° - The granting of new concessions over the deposits of hydrocarbons referred to in the present law is prohibited throughout the national territory, as well as the holding of any other contract, whatever its denomination, which contains harmful clauses of our economic independence or which could in any way encumber the self-determination of the Nation.
ARTICLE 5° - The National State recognizes and guarantees to the provinces in whose territory there are solid, liquid or gaseous hydrocarbon deposits, and to the National Territory of Tierra de Fuego, Antártida Argentina and South Atlantic Islands, a share equal to 50% of the net production of the corresponding exploitation. This exploitation will take effect until the Petroliferous Fiscal deposits have sufficiently explored the Argentine territory, at which time it can be increased by the relevant legislative reform.
ARTICLE 6 Fiscal Petroliferous deposits, State Gas and Fiscal Carboniferous Deposits will build a special fund to finance the study and exploration of hydrocarbon deposits in the yet unexplored territories.
ARTICLE 7° - The assets and activities of the Fiscal Petroliferous Deposits, State Gas and Fiscal Carbonifers deposits are exempt from all kinds of tax, taxes and rates of national, provincial, and municipal, current and future character. The contributions of improvements by actual works and the retributive rates of services actually provided are not covered by the exemption.
ARTICLE 8° - The increase in the production of hydrocarbons and their debris for the purpose of self-supplying in the country is urgently needed. Investments for this purpose will have a priority in the implementation of Estate resources.
ARTICLE 9 Until the liquidation of 50 per cent of the exploitation referred to in Article 5 reaches an amount equal to that received by the provinces, in accordance with the legal regime in force at the date of the promulgation of this Act, the Petrolfer Tax Deposits will continue to pay the royalty of 12 per cent of the gross product, which may never be less than the liquidation resulting from this percentage.
ARTICLE 10. - Contact the Executive.
Given in the meeting room of the Argentine Congress in Buenos Aires, 10 November 1958.
J. M. GUIDO F. F. MONJARDIN
Luis A. Viscay Eduardo T. Oliver
Registered under number 14.773
