Ministry of Energy and Mining HIDROCARBUROS Rule Law 17.319. DECEMBER 6,803.

Bs. Ace. 28/10/68.

VISTO the need to regulate Act No. 17.319 in respect of compensation required for persons and concessionaires for damages incurred in superficial discharges (article 100); and

CONSIDERING:

That Act No. 17.319 has repealed the system established by Act No. 15,983, and it is therefore necessary to bring the regulations into line with the new guidelines established;

That this does not impede the maintenance of certain aspects of the derogated system, which allows the use of the accumulated experience during its validity;

That it is particularly useful to give appropriate stakeholders participation in the process within a flexible framework that ensures the agility and effectiveness of the system;

That finally state enterprises defined in the above-mentioned Act must be attained by equal standards on the basis of the analogy that keeps their situation with that of permissionaries and concessionaries;

Therefore, and the provisions of article 98 Inc. "h" of Law 17.319.

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . The administrative determination . of an area or general nature los of the amounts for compensable damages caused to surface fundes by permissionaries and concessionaries, will be carried out in accordance with the provisions of articles 98, Inc. (h) and 100 of Law 17.319 and the present regulation. Art. 2o Los The amounts determined in accordance with Article 1 may be adjusted every two years according to the variation of the factors taken into account for determination. This update may be anticipated when the variation determines a total difference that exceeds 30% of the established amount. Art. 3o La The enforcement authority of Law 17.319 shall be in charge .when the parties agree to so request la the setting of the value of the damages whose amount has not been established in advance.

In this case, the parties should limit themselves to describing the damages and requesting the determination of the compensation amount. The submission of the application implies the exercise of the option provided for in article 100 of Law 17.319.

Art. 4o . Consider an Advisory Commission that will assist the enforcement authority of Law 17.319 in the preparation and updating of the determinations referred to in Articles 1 and 2o and in the setting of the values referred to in Article 3o. The Advisory Commission shall consist of a Permanent Group, provincial representatives and external advisers. Art. 5o El The Permanent Group will consist of two holders and two alternates representing the Secretariat of State for Energy and Mining and two holders and two alternates representing the Secretariat of State for Agriculture and Livestock. Its members shall be appointed by the Ministry of Economy and Labour on the proposal of such State Secretariats. Art. 6th . The provincial representatives will be appointed by the Minister of Economy and Labour on the proposal of the Governors of the Province in which oil activity takes place and will participate exclusively in the deliberations related to their respective jurisdiction. A holder and an alternate shall be appointed for each of these provinces. Art. 7o . The external advisers shall be appointed by the members of the Permanent Group in a parity and on the proposal of the companies that carry out the activities covered by law 17.319 and the superficiaries, or of the representative entities of both interests. To that end, the Secretary of State for Energy and Mining and Agriculture and Livestock, will develop the lists of entities to which the proposal of external advisers will be requested. Art. 8o . The members of the Advisory Commission will perform their functions honoraryly. Art. 9th . Please refer to the Advisory Commission to dictate its internal rules of operation and the rules of procedure to which the parties will adjust in their representations. Art. 10 . Define themselves to the emerging obligations of Article 100 of Law No. 17.319 to state enterprises defined in this Law, which shall be subject in whole to the provisions of this decree. Art. 11 El The present decree will be endorsed by the Minister of Economy and Labour and signed by the Secretaries of State of Energy and Mining and Agriculture and Livestock. Art. 12 . Communicate, publish, give to the National Directorate of the Official Register and archvese.

NGOsANIA.. Adalbert Krieger Vasena.. Luis M. Gotelli.. Rafael García Mata.