HIDROCARBUROS Decree 44/91 Regulation on the transport of hydrocarbons renamed by pipelines, gasoduuctos, polyducts and/or any other service provided by means of permanent and fixed facilities for the transport, load, dispatch, capture infrastructure, compression, conditioning and treatment of the same. General provisions. Operation Regime of Oleoducts and Poliductos. Obligations and Responsibilities of the Carrier. Control and control. Sanctionary regimen. Transitional provisions. Bs. As. 7/1/91
VISTO Law No. 17.319, Law No. 23.696 and Decrees No. 1.055/89, 1.212/89 and 1,589/89 and
CONSIDERING:
That the policy implemented by the National Government on hydrocarbons is based on the deregulation of the parameters governing the activity, thus establishing the free availability and marketing of hydrocarbons.
That the scheme adopted in this regard is based on the full functioning of the rules of the market and on the free competition, all in the framework of the opening of the national economy.
To that end, the granting of concessions of exploitation, the reconversion of the contracts of exploitation, the free availability option for the contracts signed in the terms of Plan Houston, the association of Petroliferous Taxes S.A. in the so-called central areas, thus increasing the participation of private capital in this activity, also seeking to increase the level of reserves and optimize the production of hydrocarbons.
That the policies and programmes detailed above require the integration and effective economic development of each phase of the oil industry.
In this regard, the transport of hydrocarbons becomes a determining factor in commercial operations, the same must be adapted to the new modality in the production, processing and marketing of hydrocarbons.
That the current system of transport of hydrocarbons by pipelines, polyducts and gas pipelines has monopoly characteristics, being operated mostly by Petroliferous Taxes S.A. and Gas of the S.A. State, being in turn these Societies of the States that own the facilities inherent in this system.
Such monopoly features require ensuring the interests and rights of the users of the transport system, as well as establishing a regulatory and regulatory framework of activity, including it to the loaders and transporters.
That for the effective deregulation of the activity it is necessary to limit the priority of S.A. Petroleum Deposits for the transport of its own production.
It is up to the Authority for the Implementation of Act No. 17.319 to exercise control and control over the matter, thereby giving it the powers, powers and means that permit it.
That on the basis of the characteristics that are characteristic of both the transport of liquid and gaseous hydrocarbons and according to the different factors related to their operativity, it is pertinent to the development of particular norms and technical conditions for each of them.
That the next deregulation of the oil industry makes it necessary to establish the operating and tariff framework to ensure the transport of hydrocarbons to those who so require.
That Law No. 23.696, Law No. 17.319 and Decrees No. 1.055/89, 1.212/89 and 1,589/89 give powers for the dictation of the present.
Therefore,
THE PRESIDENT OF THE ARGENTINA NATION
RIGHT:
Article 1 - Regulate the transport of hydrocarbons carried out by pipelines, pipelines, polyducts and/or any other service provided by means of permanent and fixed facilities for transport, cargo, dispatch, capture, compression, conditioning and treatment of hydrocarbons, in accordance with the provisions of this Decree.
CHAPTER I - GENERAL PROVISIONS
Art. 2° - Refer to the Under-Secretary of Energy of the Ministry of Economy of the Nation the application and exercise of these regulations as the Authority of Application established in Article 97 of Law No. 17.319.
Art. 3rd - The scope of the application of this regulation to the pipelines, pipelines, polyducts and/or any other permanent and fixed installation for the transport, cargo, dispatch, infrastructure of capture, of compression, conditioning and treatment of hydrocarbons, directly related to the transport by ducts by which the company has been granted or granted a concession of transport or authorization for its construction and operation to the individual companies
Art. 4° - The Implementation Authority shall exercise administrative and technical regulation, control, control and verification of the transport of hydrocarbons by pipelines, gas pipelines, polyducts and/or any other relevant and fixed installation for transport, cargo, dispatch, capture, compression infrastructure, conditioning and treatment of hydrocarbons, subject to the general legislation and existing technical standards, without prejudice to the other legal powers and competences established by the Authority. It shall exercise its functions exclusively so that there shall be no concurrent competence in matters assigned to it by this Decree.
Art. 5° - Carriers will pay annually and in advance a rate to be set by the Implementation Authority on the basis of estimated income for the entire hydrocarbon transport system. The proceeds of the application of this rate shall be intended to meet the costs incurred in the exercise of the regulatory, control and control framework and the police power by the Commissions which the Implementation Authority shall create for that purpose.
Art. 6° - The following terms shall be governed as appropriate:
Ducto: It is a part of a transport system consisting of a pipe, usually metal and its main components, including the insulation valves.
Oleoduct: It is the duct for the transport of crude oil from the point of load to a terminal or another pipeline, and it includes the necessary facilities and equipment for such transport.
Gasoduct: It is the duct for the transport of natural gas and/or gaseous oil products, from the point of load to a terminal or another gas pipeline and that includes the equipment necessary for such transport.
Polyduct: It is the duct for the transport of products derived from crude oil or extracted from natural gas, from the point of load to an industrial installation or a terminal or another polyduct, and which includes the necessary facilities and equipment for that transport. (Definition of Polyduct replaced by art. 1 Decree No. 115/2019 B.O. 08/02/2019)
Fixed and Permanent Installations: It consists of all facilities and installations attached to the ground, which constitute the functional package of transport of hydrocarbons by ducts between specified points and which are constituted by the own ducts, including its derivations, extensions, storage facilities, pumps, equipment and installations of load and discharge and maritime terminals of any type and eventually related rivers, infrastructure of capture, of installations, use other means This definition does not include any goods or installation related to the exploitation, processing or refinement of hydrocarbons, ports not linked to the transport by ducts, trucks, railways, ships and any other means of transport for hydrocarbons, whether land or sea.
Crude oil: For the purposes of transport means the treated product, dehydrated, degassed, tanked, rested and stabilized.
Liquid hydrocarbons: They are crude oil, products derived from crude oil and liquids extracted from natural gas. (Definition of Liquid Hydrocarbons replaced by art. 1 Decree No. 115/2019 B.O. 08/02/2019)
Underground: Except clarification on the contrary means UN (1) cubic meter of crude oil to 15o C.
Carrier: It is the natural or legal person, company of the State or society of the State, its singular or universal successors, holders in all or part of a concession of transport or authorization to build and operate a system of transport.
Charger: It refers to the transport user.
Maximum Transport Capacity: It is the operational capacity informed by the conveyor depending on the condition of the pipes and their related and complementary installations, verified and approved by the Application Authority.
Capacity Available: The difference between the maximum transport capacity of the duct and the specific requirements of the conveyor approved by the Implementing Authority. (Article 43 of Law No. 17.319).
Loading point: It is the point from which the hydrocarbons to be transported pass from the loading system to the conveyor.
Return point: is the point from which the transported hydrocarbons pass from the conveyor system to the return receiver.
Rate: It is the retribution that the shipper must pay to the transporter for the transport, storage, load and dispatch, capture, compression, conditioning and treatment of hydrocarbons.
Transport: is the displacement of hydrocarbons, made from the place of reception or capture the place of delivery or return, to onerous title, by means of pipelines, pipelines or polyducts.
Authorization: It is the legal qualification for the construction of ducts by the respective state company, either directly or through its contractors.
Concession: It is the agreed right to a particular provided for in Title II, Section 4 of Law No. 17.319.
Art. 7° - The Implementation Authority shall exercise the following powers and functions:
(a) Apply, interpret and enforce the laws, decrees and other regulations governing the transport of hydrocarbons by pipelines, pipelines, polyducts and/or any other permanent and fixed installation for transport, cargo, dispatch, capture, compression, conditioning and treatment of hydrocarbons.
(b) Dictate the regulations and approve the technical standards of coordination and complementation for the design, construction, operation and abandonment of pipelines, gas pipelines, polyducts and/or any permanent and fixed installation for transport, load, dispatch, capture infrastructure, compression, conditioning and treatment of hydrocarbons
(c) Provide the protection of the property and the environment and the public safety and the personnel of the transporter in the construction, operation and abandonment of pipelines, pipelines, polyducts and/or any other permanent and fixed installation for the transport, cargo, dispatch, capture infrastructure, conditioning and treatment of hydrocarbons.
(d) Establish the basis for the calculation of rates and conditions for the presentation of the transport service.
(e) Approv the fees applicable to shippers for the transport services of hydrocarbons by pipelines, pipelines, polyducts and/or any other permanent and fixed installation for transport, cargo, dispatch, capture, compression, conditioning and treatment of hydrocarbons.
(Note Infoleg: by art. 1 of Decree No. 115/2019 B.O. 08/02/2019 states that the rates referred to in this paragraph (e) of this article shall be adjusted each CINCO (5) years. If, prior to the end of that period, there were significant variations in the base indicators for tariff calculations, at the request of the concessionaire, such rates could be revised by the Implementation Authority. For the financing and repayment of new investments, the Application Authority may contemplate a longer period for the validity of the tariff calculation)
(f) Prevent anti-competitive, monopolistic, discriminatory and uneven behaviours between transporters and shippers.
(g) Control and control the presentation of the services, to ensure the maintenance of the services under the conditions laid down in the present and to ensure respect for the modalities, restrictions and limitations imposed by this Decree and the regulations accordingly.
(h) Control and approve the conditions and specifications established by transporters to shippers for the use of the service
(i) Establish standards to ensure and control the quality, operation and technical compatibility of fixed and permanent facilities used for the provision of services.
(j) Resolve administratively the complaints and claims of the carriers, shippers or other interested parties on matters falling within their competence. To that end, it may hold public hearings by quoting the parties involved, making statements to witnesses and collecting evidence that it deems necessary or appropriate to fulfil its functions, ensuring the consideration of all the topics involved and the granting of opportunity to the parties concerned to present their views.
(k) To advise the NATIONAL EXECUTIVE PODER on conditions, requirements and procedures for the granting, extension and declaration of expiry or nullity of transport concessions.
(l) To investigate, grant, approve transfers, extend, renew or revoke authorizations to natural or legal persons for the construction and operation of pipelines, pipelines, polyducts and/or any other permanent and fixed installation for transport.
(ll) Temporarily suspend the operation of pipelines, pipelines, polyducts and/or any other permanent and fixed installation for transport, loading and dispatch, capture, compression, conditioning and treatment of hydrocarbons, where sufficient technical basis considers that there is an imminent danger to people, goods or the environment.
(m) Where, on sufficient technical basis, it considers that there is an imminent danger to persons, goods or the environment or that the system, installation or operation does not provide security, it will order the repair, reconstruction or alteration of pipelines, pipelines, polyducts and/or any other permanent and fixed installation for transport, cargo and dispatch, capture, compression, conditioning and treatment of hydrocarbons.
(n) Receiving and administering the permanent and fixed facilities that pass to the domain of the National State for the expiry of the time limit by which a concession of transport was granted and dispose of its subsequent destination.
(o) Require service providers, the information necessary to maintain up-to-date and statistical data on the state, plans and works of maintenance and repair, valuation and capabilities of the facilities and equipment of the personnel used and of the hydrocarbons transported, stored, loaded and dispatched, captured, compressed, conditioned and treated. Such information, data and statistics will be published periodically by the Implementation Authority.
(p) Dictate the internal regulations and procedures necessary for the exercise of their functions.
(q) Participate in the development and negotiation of international treaties, agreements or conventions on the transport of hydrocarbons by pipelines, pipelines and pipelines, advising the official body exercising national representation.
Art. 8° - The Implementation Authority shall exercise its functions in order to ensure the continuity, regularity, equality, free access, non-discrimination and generality of the services and to promote the transport of hydrocarbons by pipelines, pipelines and polyducts, and/or any other permanent and fixed installation for the transport, loading and dispatch, infrastructure for the capture, of compression, conditioning and treatment, of reasonable hydrocarbons, as well as fair prices and services.
CHAPTER II
REGIME OF OPERATION OF OLODUCTS AND POLIDUCTS
Art. 9th - The transport of liquid hydrocarbons shall be carried out as a public service, ensuring open and free access subject to the provisions of this Decree, to the system of transport to anyone who requires it, without discrimination and by the same rate on an equal basis, provided that there is available capacity, as defined in Article 6 of this Decree.
Art. 10. - The fees received by the transport will be approved by the Application Authority and will be equal for any shipper, under similar circumstances and conditions regarding the traffic of liquid hydrocarbons of equal specification, transported by identical route.
Art. 11. The available capacity defined in Article 6 of this Decree shall be declared annually by the transport concessionaires, in accordance with the procedure established by the Implementing Authority.
(Article replaced by art. 1 Decree No. 115/2019 B.O. 08/02/2019)
Art. 12. - The priority set out in Article 43 of Law No. 17.319 with regard to the production of crude oil from S.A. Petroleum Oils will be limited to the programmed and committed volumes that will periodically be determined by the Implementing Authority.
Art. 13. - Each transport concessionaire who can access the preference of Article 43 of Law No. 17.319 will inform the Authority of Application of the volumes of liquid hydrocarbons that it will produce and will need to transport by it.
Individuals and/or legal entities that are jointly holders of a transport concession shall credit the percentages of interest or property corresponding to each of them for the Application Authority, if the preference of Article 43 of Law No. 17.319 is applicable, to establish the transport requirements of each holder.
Art. 14. - When the available capacity of a transport system is not sufficient to transport the volumes of liquid hydrocarbons that the whole of the loaders demand, such available capacity will be assessed. The apportionment shall be made by the conveyor, in direct proportion to the volumes of liquid hydrocarbons whose transport demands each shipper.
Art. 15. - If the preference established in Article 43 of Law No. 17.319 is applicable in favour of a transport concessionaire, it shall not be transferred in any way.
Art. 16. - Approve the particular rules and technical conditions governing the transport of crude oil under the provisions of this Decree, as Annex I thereof.
Art. 17. - Please refer to the Implementation Authority to incorporate into the specific rules and technical conditions of Annex I to the present Decree, possible modifications related to the adequacy, updating and evolution of the activity and the system of transporting hydrocarbons by ducts throughout the National Territory.
CHAPTER III
OBLIGATIONS AND TRANSPORTER RESPONSIBILITIES
Art. 18. The conveyor must:
(a) To receive, transport and return the hydrocarbons entrusted to it, with due care and diligence and without delay, except for the specific exceptions, conditions and regularizations approved by the Implementation Authority.
(b) Operate the transport system uninterruptedly and continuously except for emergencies, fortuitous case or force majeure or additional construction.
(c) Schedule and fulfill in each return or delivery with the volumes and specifications in the agreed time frames and locations.
(d) Provide suitable and suitable facilities for reception, measurement, transport, return and storage of hydrocarbons.
(e) Act, operate and render the service, in a manner that does not discriminate in fees, services or facilities.
(f) Control, schedule and manage transport efficiently, so as to allow an orderly flow of hydrocarbons, trying to obtain a maximum of charge to the lower costs, without exceeding the pressure limits of the system.
(g) Establish control systems, forecast and prevent the repair and maintenance of the transport system.
(h) Separately and independently maintain your performance as an operator of a transport system and other activities that you develop, including when transporting hydrocarbons from your property.
(i) To comply with and enforce the present regulations and the rules that are issued accordingly to the natural or legal person responsible for the operation of the transport system being jointly responsible for the performance of the transport system.
Art. 19. - The conveyor shall be responsible for the total or partial loss and deterioration of the hydrocarbons entrusted to it, unless it proves that the damages come from an incidental or force majeure.
Art. 20. - The liability of the shipper shall be effective from the moment it receives the hydrocarbons and until their return or delivery.
Art. 21. - In the event that a plurality of transporters must intervene, they will be jointly responsible against the shipper.
CHAPTER IV
FISCALIZATION AND CONTROL
Art. 22. - The Implementation Authority shall initiate proceedings aimed at monitoring compliance with the conditions of transport concessions, authorizations, regulations and applicable rules, ex officio or at a request from users or any other interested party which, verily, emphasizes violations thereof. The periodicity of prosecutions, except in the case of serious violations and the conduct thereof, shall, as far as possible, prevent the handling of the carrier in question. An action may also be initiated at the request of the carrier wishing to modify the conditions of its concession or authorization.
Art. 23. Any control and action by the Implementation Authority shall respect the right of defence of the parties. The Administrative Procedures Act and Decree No. 1.759/72 and its amendments will be applicable in this regard.
Art. 24. In the event of the undue reluctance of the carrier in the provision of information or refusal to allow the entry of the staff members who are outstanding for the purpose of completing the inspections that the Authority has ordered, the Authority may apply to the competent court for the assistance of the public force, without prejudice to the application of the penalties that such reluctance or refusal entails.
Art. 25. ∙ Any information received by the Authority for the Application of Conveyors and Loggers shall be made available to the public under the guidelines set for official use and not disrupt the management of the Implementation Authority. It excludes from this rule the information that such conveyors and shippers request, on the basis of which they are considered confidential, provided that the Authority of Implementation expressly admits such a character.
Art. 26. Decisions adopted by the Implementation Authority, in the matter regulated by the present Act, shall exhaust the administrative channel for the purposes of Article 23 of the Law on Administrative Procedures, without prejudice to the hierarchical recourse to the NATIONAL EXECUTIVE PODER by which the applicant may otherwise, without the delegation being applicable in favour of the Ministers.
Art. 27. ∙ Shippers or third parties who consider that the carrier has violated the terms and conditions under which a concession or authorization has been granted, or the applicable regulations, may request the intervention of the Application Authority.
CHAPTER V
REGIME SANCIONATORIO
Art. 28. - The penalties applicable by the Authority of Implementation to transporters and shippers, in violation of this regulation, to the corresponding rules and to the terms and conditions under which a transport concession or authorization is granted to build and operate a transport system, shall be as follows:
(a) Sanctions shall consist of receipt, fine, expiration of authorization to build and operate a transport system and request to the NATIONAL EXECUTIVE PODER to declare the expiry of the transport concession.
(b) The Applicable Authority may provide for the publication of the penalty where there is a recidivism in the same offence or where the social impact of the penalty makes public knowledge of the penalty appropriate.
(c) Sanctions shall be subject to the seriousness and repetition of the offence; the difficulties or damages that the infringement entails to the service provided, to the users and third parties; and the degree of impact of the public interest.
(d) The application of sanctions shall be independent of the obligation to return or compensate the unduly perceived rates of the shippers, with updating and interest, or to compensate the damages caused to the State, the shippers or third parties for the offence.
(e) Offences will have a formal character and will be configured regardless of the dolo or fault of the carrier or the shipper and the persons for whom they must respond.
(f) The final sanctioning act at the administrative headquarters shall constitute a valid precedent for the purpose of reiterating the offence.
(g) The application of sanctions will not prevent the Implementation Authority from promoting judicial actions that persecute the enforcement of applicable rules violated, with more accessory rights.
(h) The application of the sanctions shall follow the procedure established by the Implementation Authority, which shall ensure the right of defence of the accused. To this end, the accused must be notified and given a period not less than TEN (10) administrative working days for the production of the relevant waste.
(i) Any fine shall be paid to the Authority of Application, within the TREINTA (30) days of signature, subject to notice of execution.
Art. 29. - The fines to be applied for violation of Act No. 17.319 and this regulation shall be graduated from a minimum equivalent to the value of VEINTIDOS (22) cubic meters of national crude oil in the domestic market and a maximum of DOS MIL DOSCIENTOS (2,200) cubic meters of the same hydrocarbon for each offence. (Articles No. 87 and 102 of Act No. 17.319).
CHAPTER VI
TRANSITORY PROVISIONS
Art. 30. - Instruct the Ministry of the Economy of the Nation to take the measures and precautions that allow the Authority of Implementation defined in Article 2 of the present to have the means to achieve the full and effective fulfilment of each of the functions assigned to it and to ensure the full exercise of the powers and powers granted to it by this Decree.
Art. 31. - Instruct the Undersecretariat for Energy, Ministry of Economics of the Nation to develop within a period of SESENTA (60) and CIENTO VEINTE (120) days from the validity of the present, the particular rules and technical conditions regarding the transport by gas pipelines and by polyducts respectively, all in the framework of the provisions for liquid hydrocarbons in this Decree.
Art. 32. - Invite the Undersecretariat for Energy and the Ministry of Economy to approve, within a period of QUINCE (15) days, from the date of validity of the present, the tariff that will govern the transport of liquid hydrocarbons according to the requirements of this Decree.
Art. 33. - The provisions of this Decree shall enter into force from the date of publication in the Official Gazette.
Art. 34. Communicate, publish, give to the National Bureau of Official Records and archvese. .MENEM. Antonio E. González.
Annex I
(Annex replaced by art. 1 Resolution No. 571/2019 of the Ministry of Energy B.O. 25/9/2019. Watch: from the day of publication in the Official Gazette)
PARTICULAR COUNTRIES AND TECHNICAL CONDITIONS FOR THE TRANSPORT OF LIQUID HIDROCARBERS BY DUCTS AND TRAINING MARITIES AND FLUVIAL
CONTENTS
1. Servicing.
2. Program of deliveries and returns. Projections.
3. Delivery and return points. Responsibilities.
4. Responsibilities between the parties.
5. Specifications.
6. Transport time. Volumes for operational stock.
7. Reception and return. Service disruptions.
8. Measurement procedures.
9. Transport and storage of crude oil mixtures. Quality adjustments.
10. Transport or storage of crude oil mixtures with other liquid hydrocarbons. Quality adjustments.
11. Transport and storage of crude oils, other liquid hydrocarbons and refined products in potholes or remittances.
12. Volumetric deductions.
13. Liquid hydrocarbon deliveries out of specifications.
14. Maintenance and security of facilities.
15. Maritime or river methodology.
16. Transport and storage capacities. Extensions and reforms.
17. Capacity available. Determination. Distribution. Criteria.
18. Restrictions of service by contingencies. Priorities.
19. Suspension of service.
20. Installations in the load and return points. Operating conditions.
21. Communications.
1. PRESTATION OF SERVICE 1.1. The provision of the service of transport of liquid hydrocarbons through ducts and of maritime and river terminals shall be subject to the provisions of Law 17.319, Decree 44/1991, Decree 115/2019, these Particular Regulations and Technical Conditions and the Internal Regulations established by the respective concessionaire of transport of the corresponding transport system.
1.2. The Internal Regulations shall be submitted by the carrier to the Implementation Authority, which may require any modifications or adjustments it deems relevant for the purposes of its compatibility with the rules of application, within thirty (30) days of submission. For the existing concessions, the carriers must deliver within a period not exceeding sixty (60) days the Internal Regulations governing the rules for their corresponding transport systems.
1.3. After thirty (30) days without observations by the Implementation Authority, the transport concessionaire will publish the Internal Regulations on its website, which will apply to all its shippers.
1.4. The provisions of Decrees 44/1991 and 115/2019 and the Internal Regulations shall govern the contractual relationship between the shipper and the carrier, and the latter must inform the former of the regulations prior to the use of the service.
2. PROGRAMME OF ENTREGATIONS AND REVOLUTIONS. PROJECTIONS 2.1. The shipper will inform the carrier, as necessary in advance in accordance with the Internal Regulations, of its transportation requirements in order to coordinate the loads and returns of the hydrocarbons and to avoid operational inconveniences.
2.2. In order for the carrier to comply with the information requirements requested by the Implementing Authority, the shipper will inform you of its best estimate regarding the volumes to be transported with a projection of up to five (5) years, in order to keep the Record of Transport Capacity and Storage of Liquid Hydrocarbons, by means of the tables that work as Annex II.A Transport (IF-2019-84952860-HA
This information, in the case of the maritime terminals, will be used to define the capacity of the terminal and organize its logistics.
2.3. The carrier must return to the shipper the volumes of raw received, at the delivery points that the shipper indicates when loading or later, affected by the quality factors defined in paragraph 9 and the volumetric deductions defined in paragraph 12, having to operate the system efficiently, managing the returns in such a way as to reduce the physical transport of the liquids that transport themselves, optimizing the handling of the same.
2.4. The monthly delivery and return program will be accepted by the carrier when, for any day of the scheduled month, a sufficient operating storage capacity is ensured to ensure the uninterrupted operation of the service during that month.
3. BETWEEN AND REVOLUTION. RESPONSIBILITIES 3.1. The shipper and the carrier will agree and identify the loading and return points for liquid hydrocarbons to be transported.
3.2. Once the delivery of the product by the shipper at the specified loading point, maintaining the ownership of its hydrocarbons, the carrier shall be transferred to the carrier for the custody and responsibility of the load, until the return is made at the agreed point.
3.3. The maintenance and security of the facilities between the loading point and the return point will be carried exclusively by the carrier. On the other hand, the measurement facilities and the existing ones between these and the loading point will be carried out by the shipper, as well as those existing between the loading point and the entry to the installation of the carrier, unless otherwise agreed by the parties based on technical or operational reasons.
4. RESPONSIBILITIES BETWEEN THE PARTIES 4.1. Each of the parties will be responsible to the other for the sinisters,
incidents and/or losses occurring in their respective facilities.
4.2. If the cause of the sinister or incident was attributable to the fault of any party, the loss of the product would be borne by those who had the duty to act carefully and diligently, and had not.
4.3. Any loss or spill that occurs, for reasons other than the negligence or fault of the carrier before the liquid hydrocarbons enter the conveyor's facilities, will be supported by the shipper determining the lost volume of common agreement between the parties.
4.4. In the event that a sinister or incident occurs at the conveyor's facilities on a fortuitous case or force majeure, the loss of liquid hydrocarbons will be supported in proportion to the volumes of each shipper, for the case of ducts that were loaded with the same destination and route within five (5) days prior to the fact. For the terminals, this loss will be supported by all the chargers who have made use of them in the previous five (5) days.
4.5. The party with the sole responsibility for the maintenance and security of the facilities in which the incident occurred shall be liable for damages to third parties.
4.6. Both the carrier and the shipper must keep the corresponding insurances updated to cover the risks of the activity they develop.
5. SPECIFICATIONS 5.1. The shipper will deliver to the carrier the volumes of crude oil in commercial specification that should not contain more than: one percent (1%) of water and impurities, one hundred grams per cubic metre (100 gr/m3) of salts, and one hundred three kilopascales with forty-two hundredths (103,42 kPa.) to thirty-seven degrees Celsius with eight tenths (37.8 °C), in the steam value Re.
5.2. For the rest of the liquid hydrocarbons such as condensed, gasoline, reduced crude and reconstituted crude, the carrier shall establish in its Internal Regulations the basic technical conditions of quality that the transported products must comply with. Such conditions should be informed
Implementation Authority.
5.3. The carrier has the responsibility to establish the specific specifications of its system that must meet the hydrocarbons to be transported and the hydrocarbons to be stored in the terminal, to ensure the operation of the transport system efficiently and in accordance with the good practices of the industry. These ranges will be reported to the Implementation Authority, together with the Internal Regulations.
5.4. The carrier must keep the list of dangerous or disruptive substances on its website. The shipper must inform the carrier beforehand when its fluid contains hazardous or contaminating substances that may affect the commercial value of the liquid hydrocarbons transported, or that they are disruptive to the system. The carrier will decide the implications of transporting hydrocarbons with such components.
5.5. The shipper whose hydrocarbons contain the substances referred to in the preceding paragraph, and had not properly informed the carrier, shall be liable to the penalties applicable in accordance with the current regulation, without prejudice to the compensation appropriate for damages.
6. TRANSPORT TIME. OPERATIVE STOCK VOLUMES 6.1. Liquid hydrocarbons will be returned by the carrier to the shipper or to the addressee indicating, within a period not exceeding the time required for transport from the load point to the return point, which must be informed by the carrier to the shipper before the start of the transport operation.
6.2. The stock necessary for the operation of the duct or the boarding terminal will be provided by the shippers themselves with the product in transit.
7. RECEPTION AND REVOLUTION. INTERRUPTIONS OF SERVICE 7.1. If due to operational problems, inconveniences at reception or return points, lack of storage capacity, additional constructions, scheduled maintenance operations previously informed to the
Application Authority, or emergency cases, the carrier could not operate the transport system uninterruptedly and continuously, will be exempted from liability for a total and joint period not exceeding seventy-two (72) hours per calendar month provided that the cause of interruption had not been caused by its fault. The liability of the carrier shall not be subject to indirect damage, except express agreement between the carrier and the shipper.
7.2. In the event of interruption of the service due to instances of fortuitous case or force majeure, the carrier will communicate it to the shipper in a fruitful way within forty-eight (48) hours of the incident. Overcoming this cause of interruption, the carrier will communicate to the shipper the re-establishment of the service. The carrier shall not be liable for the damages that the shippers may suffer due to the lack of service caused in the cases referred to.
7.3. Where for reasons attributable to the cargo recipient, the liquid hydrocarbons transported could not be delivered at the return point, for reasons not attributable to the carrier, the carrier may interrupt the receipt of new volumes of the liquid hydrocarbon with the same destination, until the receipt at the return point is normalized.
8. PROCEDURES OF MEDITION 8.1. The methodologies and procedures for determining the quantities and physical-chemical characteristics of liquid hydrocarbons to be transported, whether they are carried out through the use of tanks or automatic measurement units, as appropriate, shall be part of the Internal Regulations of the concession.
8.2. The above-mentioned methodologies and procedures will be established in accordance with the standards, requirements, practices and recommendations set out in the Manual of Oil Measurement Standards of the North American Petroleum Institute (MPMS - API), as follows: Manual of Petroleum Measurement Standars - American Petroleum Institute, the North American Society for Testing and Materials (ASTM).
American Society for Testing and Materials) and other complementary national and international standards and norms adopted by the industry according to its latest current review.
8.3. The determined crude oil volumes will be corrected and expressed at fifteen degrees Celsius (15 °C) of temperature and one (1) pressure atmosphere.
8.4. For the rest of the liquid hydrocarbons, the carrier will establish the basic technical conditions of quality in its Internal Regulations.
8.5. The elements used in routine measurements or as control patterns must have the respective check, calibration and traceability certificates.
It should be established under what circumstances, conditions or frequencies the calibration of the tanks, meters and calibrators of the Automatic Measuring Units will be carried out, having to comply with the provisions of Resolution 318 of the former Energy Secretariat of 22 April 2010 and the approval of the National Institute of Industrial Technology (INTI), or the rules that replace them in the future.
8.6. All measurements and determinations referred to both receptions and returns shall be carried out with representatives from both parties, based on verifiable records. In the event that the shipper does not participate in such measurement, the register reported by the carrier shall be considered. When the returns are made by handing over to a station that in turn is carrier, the latter will act on behalf of the shipper.
8.7. For the case where the deliveries are made in tanks of the terminal operator, the storage time necessary for the reception and measurement of the liquid hydrocarbon from the ducts in the terminal will be considered operational and will not produce any storage cost for the shipper.
9. TRANSPORT AND ALMACENAJE DE MEZCLAS DE PETRÓLEOS CRUDOS. Goodness 9.1. The carrier must establish a compensation methodology called the Quality Bank, as equal as possible to adjust in volume to the shippers for the devaluation or valorization of the liquid hydrocarbon that they receive at the return point compared to the product entered in the return point.
load point.
9.2. In the pipeline systems that receive only crude oils for their transport, and the operation is not carried out through remittances, the crude oil will be received by the carrier on condition that it will be subject to changes in density or quality while in transit, as a result of the transport and the mixing of such crude oil with others that are in the pipelines or tanks of the carrier, the Bank must adjust the quality of the market.
9.3. The methodology and calculation of the volume of return will be proposed by the carrier in consensus with its affected chargers, and must be authorized by the Implementation Authority for each duct system that operates. In the event that a charger of that system expressly manifests its dissent, the Application Authority shall resolve the particular case.
9.4. For transport systems in operations at the date of entry into force of this standard, the carriers shall submit within 90 days the proposal of the Quality Bank to apply in their service. For new ducts or terminals, the Quality Bank must be presented before starting operations.
9.5. The carrier will not modify the quality adjustment to the loaders of the system, having to request authorization from the Application Authority, who may require the studies, technical and economic backings that support the respective procedure. Until this happens, you must use the following formula:
In API degrees:
Vd = [1 + Ca (APIc - APId)] Vc (1) Being:
Vd: volume returned Vc: volume loaded
APId: IPR grade of crude oil returned to 15.56°C
APIc: IPR grade of crude oil charged to 15.56°C
Ca: Adjustment coefficient = 0.005 (0.5% per API grade)
9.6. The alternative quality adjustment to the formula detailed in the preceding paragraph, approved by the Implementing Authority for a transport system prior to the entry into force of these regulations, will continue to apply.
10. TRANSPORT OR ALMACENAJE DE MEZCLAS DE PETRÓLEOS CRUDOS WITH OTHER LIQUID HIDROCARBUROS. Goodness 10.1. In the systems of ducts or terminals in which, in addition to crude oils, different types of liquid hydrocarbons, such as condensed, gasoline, reduced crude and reconstituted crude oils, are received for transport and storage, and the operation is not carried out in remittances, liquid hydrocarbons will be received by the carrier on condition that they will be subject to changes in the normal density, quality and other characteristics according to what is produced.
10.2. As a result of the mixture in a single common flow of liquid hydrocarbons of varied quality characteristics and market values, some shippers will receive at the return point a hydrocarbon of a higher quality than they had loaded into the transport system, while others will receive at the return point a hydrocarbon of a lower quality than they would have charged.
10.3. The carrier will be authorized to load and store, as a mixture, liquid hydrocarbons that are not covered under the condition and definition of crude oil. In the event that a charger of such a system expressly manifests its dissent with this fact, the Application Authority shall decide on the particular case.
10.4. The procedure established as a Quality Bank shall be proposed by the carrier within a period of ninety (90) working days to the Application Authority, for approval, for each transport system operating under the conditions described in this section.
10.5. For new ducts or terminals, the Quality Bank must be presented
before starting operations.
10.6. The conveyor shall not apply or modify the quality adjustment to the loaders of the system until authorized by the Implementing Authority. This may require technical and economic studies and backings that support the procedure. While an alternative adjustment is not authorized, you must use the formula set out in paragraph 5 of item 9 of this rule.
10.7. The Quality Bank may be regularly updated by the carrier for the purpose of considering material changes in the composition of the liquid mixture subject to its transport, and must inform the Implementation Authority of such modifications, and publish them on its website.
11. TRANSPORT AND ALMACENAJE DE PETRÓLEOS CRUDOS, OTHER LIQUID AND PRODUCTS IN BACHES OR REMESES 11.1. The carrier, if its facilities permit, may offer the transfer service in remittances of one or more types of hydrocarbons owned or segregated storage. The shipper concerned may request the carrier to provide such a mode of service.
11.2. The carrier will provide the service requested by the shipper provided that the requirements required by its Internal Regulations are met, in relation to the frequencies and volumes of the minimum and maximum receptions, pressures and flows, and the characteristics and capacity of the related special facilities to be planned and built by the shipper at the load and return points.
11.3. In case the requested service can be carried out, the carrier must make its greatest effort to substantially return the same type of hydrocarbon received from the shipper. However, it should be accepted that the returned product may not be identical to that received.
11.4. The product accepted for remittance transport will be subject to changes in composition and quality as it is transported due to the mixture with another similar product present in the transport system in question, and the pollution produced in the interfaces and other remittances.
Accordingly, a similar product can be delivered to the shipper at a regular return point.
11.5. The damage or losses due to contamination or the deterioration of the segregated hydrocarbon will not be attributable to the carrier, including, but not limited to changes in density, colour, steam pressure, quantity or value as a result of its mixture - while it is being transported - with another similar hydrocarbon at the conveyor's facilities.
11.6. The shipper must provide the quantities of the product required by the carrier to conform the work stock for the different types of product to be segregated.
11.7. The shipper must take into account -in accordance with the requirements of the carrier - at the designated load points and return points, the provision, disposition and final treatment of the volume of hydrocarbons to be used as a separating and interface material applicable to the transport of your product.
11.8. The shipper and the carrier shall agree on all the details inherent in the provision of remittance transport through effective compliance agreements between the parties, which shall be referred to the Implementation Authority for their knowledge.
12. VOLUMETRIC DEDUCTIONS 12.1. The shipper will recognize in favour of the carrier a percentage of deduction of the volume of liquid hydrocarbons delivered to the carrier, in order to adjust any physical defect resulting from the evaporation, volumetric contraction phenomena of the mixtures and differences in the measurement systems as a result of the transport, manipulation or losses of liquid hydrocarbons due to clandestine connections, derrames, greater fortuitous operation
12.2. This deduction will be applied to the volumes of net liquid hydrocarbons of each of the deliveries made at the loading point, and will be established specifically for the different types and characteristics of the liquid hydrocarbons entering the system of transport by ducts or loaded into the terminal. The carrier must regularly report the percentage of dermas considered, and if that percentage is reduced, it must return the amount of hydrocarbons corresponding to that adjustment to the loaders of its system.
12.3. For the case of the pipelines in which crude oil mixtures or remittances are transported only, the carrier will apply a maximum deduction of two tenths per cent (0.20%). Also, for the case where terminals operate with mixtures or remittances of crude oils only, the operator will apply a maximum deduction of two tenths per cent (0.20%).
12.4. In the case of the pipelines in which, in addition to crude oil, different types of liquid hydrocarbons (e.g., condensed and gasoline) are received for transport and in which the operation is not carried out through remittances, the carrier will apply a maximum deduction of three tenths per cent (0.30%). In the case of reduced crudes and reconstituted crudes and in which the operation is not carried out through remittances, a maximum deduction of sixty-tenths per cent (0.60%) is agreed.
12.5. In the case of maritime terminals where remittances of different types of liquid hydrocarbons are stored and transported, the carrier will apply for condensed, petrol and products derived from crude oil, to a maximum of three tenths per cent (0.30%). For liquefied petroleum gas and natural gas (LGN) liquids, a deduction of three and a half-tenths per cent (0.35 per cent).
12.6. In the case of polyducts in which remittances are transported from different types of liquid hydrocarbons, the carrier will apply for condensed, petrol, and products derived from crude oil, to a maximum of twenty-five hundredths per cent (0.25 per cent). For liquefied petroleum gas (LPG) and natural gas (LGN) liquids transported in continuous flow, it will allocate a maximum of three tenths per cent (0.30%). For the case of reduced crudes and reconstituted crudes, such deduction may be up to sixty-tenths per cent (0.60%).
12.7. In all cases, the Application Authority shall authorize the carrier to apply the volumetric deductions by mermas to be applied in its systems, and may require the carrier to that end the technical data and studies that demonstrate the volume loss invoked.
12.8. All previously defined volumetric deductions may be modified by the Application Authority in the event that the carrier warrants significant changes in the composition of the liquids transported and stored in the system. 12.9. The concepts indicated are summarized in the following table:
13. LIQUID HIDROCARBURES OUT OF SPECIFICATIONS 13.1. If exceptionally liquid hydrocarbon deliveries are produced outside of the specifications established in the basic technical conditions of quality, the shipper will be responsible for the claims that originate as a result of this, by the carrier, of the other chargers, of the raw purchasers or their refiners.
13.2. In the event that the shipper requires the delivery of liquid hydrocarbons out of specification, he shall coordinate with the carrier, who shall determine whether the receipt of liquid hydrocarbons out of specification, as set out in the preceding point, does not substantially alter the conditions already in his custody and the security of the process.
13.3. In this case the carrier may authorize the receipt of liquid hydrocarbons out of specification, establishing volume limits, storage times and quality in each particular case.
13.4. This tolerance in the receipt of liquid hydrocarbons out of specification, with or without the collection of fines or penalties, shall not be interpreted as the release of the liability of the shipper or the carrier for the claims referred to in this point.
14. MAINTENANCE AND SECURITY 14.1. The maintenance and security of the measuring facilities will be carried out by their operators, pursuant to Resolution 318 of the former Energy Secretariat of 22 April 2010.
14.2. The maintenance and safety of the duct of the terminal and its associated installations from the loading point to the return point will be exclusively provided by the carrier.
14.3. The carrier and the shipper must define a protocol to be applied in case of sinisters within the loader and conveyor facilities, in terms of the drive of the derivative valves. Such a protocol should be agreed between the parties and informed of the Implementation Authority.
15. MATTERS OR FLUVIAL All related to the operations of shipments of crude oil or eventually other liquid hydrocarbons, in tank vessels and its methodology, including the nomination of shipment, the arrival of the tank vessel, the operations at the terminal, stay, on stays, delays and charges of the terminal will be governed by the harbour regulations or other regulations of the terminal of each carrier.
16. TRANSPORT AND ALMACENAJE CAPACITIES. AMPLIATIONS AND REFORMS 16.1. The carrier must have an operating storage capacity appropriate to the volumes that operate in its transport system, which does not mean that such capacity will be available beyond the agreed, attentive to the requirements of the different types of loads. For this reason, hydrocarbons should be withdrawn according to the schedule agreed with the carrier, and if not done, a stay ticket equivalent to triple the corresponding rate, per day or day fraction, will be applied on the unretired volume, in case the service is feeble. These conditions shall be specified in the Internal Regulations of the Carrier. The payment of the above-mentioned fine does not exempt the shipper from his or her liability, and the latter must keep the carrier unpaid for third-party claims.
16.2. When the status and characteristics of fixed and permanent facilities entail any operational risk, to the environment or third parties, the carrier shall raise to the consideration of the Implementation Authority the projects aimed at minimizing or eliminating such risks.
16.3. When the transport or storage capacity of a transport system is insufficient to permanently operate with higher volumes of oil or other liquid hydrocarbons than planned for that system, the carrier may propose to the Implementation Authority the expansion projects required to respond to unsatisfied demand for transportation or storage.
17. AVAILABLE CAPACITY. DETERMINATION. DISTRIBUTION. CRITERIA 17.1. The available capacity will be informed annually by the carrier to the Implementation Authority, based on the requirements of the Register of Transport Capacities and Liquid Hydrocarbon Storage. To this end, each concessionaire who can access the preference of Article 43 of Law 17.319 will inform the Authority of Application of the volumes of liquid hydrocarbons that you will need to transport.
17.2. The carrier shall inform the Authority of Implementation of the contracts of standing with its shippers under article 5 of Decree 115/2019, for the purpose of accounting for such volumes in the available capacity of the system.
17.3. In the administration of available capacity, the carrier must faithfully observe the principles of transparency, adequate advertising, fair treatment, free competition and competition.
17.4. The carrier must respond to any request for service within the thirty
(30) days of reception. The eventual negative response must be duly substantiated.
17.5. When the available capacity is not sufficient to load the entire volume required by the chargers, the assigned volume must be assessed. The available capacity will be assigned by considering the average volume transported to each shipper for the six (6) months before such capacity is filled. This limitation shall not apply to firm capacity reserve contracts in the terms of Article 5 of Decree 115/2019.
18. RESTRICTIONS FOR CONTINGENCE SERVICE. PRIORITIES 18.1. In the event that the available capacity of a transport system is not sufficient to transport or store the volumes of liquid hydrocarbons that the whole of the chargers demands due to a contingency, the available capacity of that system will be assessed, provided that the contingency is not attributable to a charger.
18.2. If the shipper responsible for the contingency is identified, the total volume of that shipper will not be transported until such contingency is resolved.
18.3. The apportionment of the available capacity shall be made in direct proportion to the volumes of liquid hydrocarbons whose transport demands each charger other than that mentioned at the previous point, according to the recorded average volume transported by each of them in the last six (6) months. These values must be reported by the carrier.
18.4. Any shipper who credits the priority set out in article 43 of Law 17.319 with regard to the production of hydrocarbons from its deposits shall be limited to the programmed and committed volumes that have informed the Implementation Authority, which are in force at the date of the restriction.
18.5. The shippers may submit to the approval of the Application Authority, different allocation criteria, which shall be accepted by all concerned.
18.6. If the inability to transport or store the volumes demanded by all shippers becomes permanent, the carrier must present a project to expand its facilities to meet that demand.
18.7. The extension indicated in the previous point will be of optional application to the transport capacity of concessions granted under article 28 of Law 17.319.
19. SUSPENSION OF SERVICE 19.1. If the shipper fails to comply with the conditions and procedures set out in the Internal Regulations, he will be inestimated to comply with the agreed requirements. Once the deadline for regularization has passed, without the shipper having complied with the agreement, the carrier may immediately suspend the service.
19.2. In the light of the breach by the shipper of the substantial conditions or procedures for the maintenance of the security of persons, goods, and the care of the environment, including the proper maintenance of its facilities, the carrier may suspend the service at any time in order to avoid situations of imminent risk or danger, and shall inform the Implementation Authority of this situation.
20. INSTALATIONS IN CARGA AND DEVOLUTION POINTs. OPERATIONAL CONDITIONS 20.1. The carrier will receive the liquid hydrocarbons of the charger through the installations provided by the charger, an agent or a connection carrier.
20.2. It will also determine the operating conditions regarding the frequencies of the receptions, pressures, minimum and maximum flow rates, the characteristics and capabilities of the related installations to be provided by the shipper at the loading point, in order to meet the requirements, security and operating conditions at that point.
20.3. It will not be obligatory for the carrier to accept liquid hydrocarbons for transport unless such installations and requirements at the load points have been provided and completed, respectively.
20.4. The carrier will return the liquid hydrocarbons of the shipper at the return points provided in the transport system, connected to pipelines, polyducts or other fixed and permanent installations provided by the shipper, a customer, a consignee, or a carrier or connection operator.
20.5. It will also determine the operating conditions for the frequencies of returns, pressures, minimum and maximum flows, the characteristics and capabilities of the related facilities to be provided by the shipper at the return point, to meet the requirements, security and operational conditions at this point.
20.6. It will not be mandatory for the carrier to accept liquid hydrocarbons for transportation unless such facilities and requirements at the return points have been provided and filled respectively.
21. COMMUNICATIONS 21.1. The loading company must provide the carrier with an up-to-date record of the persons authorized to represent the shipper validly in front of the carrier, to deliver, communicate, nominate and report everything established in relation to the service.
21.2. The carrier will do the same with the shipper regarding the persons authorized to report everything concerning the Operative and Control Procedures, Internal Regulations, Harbour Regulations, programming and any other necessary information related to the service.
