Bs. As., 2/12/92

VISTO Law No. 24.076 and its Regulations adopted by Decree No. 1738/92; and

CONSIDERING:

That said law declares "subject to total privatization" to GAS of the SOCIEDAD STATE STATE and approves the new regulatory framework for the transport and distribution of natural gas.

That Decree No. 1189 of 10 July 1992 provides for the privatization of STATE SOCIEDAD GAS and approves the scheme recommended by the Implementing Authority for the transport system and gas distribution networks.

That Decree No. 1738 of 18 September 1992 in regulating Act No. 24,076 provided that the qualifications provided for in article 4 of the Act included the form of transport and gas distribution licences and defined the essential requirements for such licences.

That the models of transport licence and natural gas distribution proposed by SECRETARIAT OF ENERGIA are suitable for the provision of public service and meet the requirements set out in article 4 of Decree 1738/92.

It is appropriate to clarify that for the purposes of the computation of the margin of the VEINTE BY CIENTO (20 %) provided for in Article 34(3) of Decree 1738 of 18 September 1992, both the direct supplies of producers to the respective distributor, and those indirectly made through other producers or intermediaries, will be computed in order to avoid diversions in the interpretation of such restriction.

It is appropriate to adjust the text of Chapter I, Title XII of Decree 1738 of 18 September 1992 to the requirements of this model of licence.

It is advisable to exclude the application of the limit of article 31 of Law No. 19.550, in view of the amount of foreseeable investments, as permitted by the same rule and has already been resolved in other privatization processes.

That the NATIONAL EXECUTIVE POWER is entitled to the dictation of the present pursuant to articles 10 and 15, paragraphs 7 and 13, of Act No. 23,696 and amendments, Act No. 24,076 and article 86, paragraphs (1) and (2) of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

Right.

Article 1 - Replace article 34 (3) of the Regulations of Law No. 24,076, adopted by Decree No. 1738 of 18 September 1992 with the following:

(3) For the purposes of the first two pairs of this article shall not be considered included in the restriction there provided to the groups of producers, of storage, of distributors, or of consumers who contract directly with producers, although they possess, in conjunction, more of CINCUENTA per CIENTO (50 %) of the capital or of the votes in the controlling inverting society of a carrier or distributor, if they do not supply or receive more For the purposes of such VEINTE BY CIENTO (20 %) the direct supplies of the producers will be computed to the respective distributor, such as those made indirectly through other producers or marketers.

Art. 2° - Rule 36 of Act No. 24.076 as follows:

"ARTICULO 36. - It will not apply to shareholders in the companies constituted by Decree 1189/92, and in the Inverting Societies which are in turn shareholders in the latter, the limit provided for in Article 31 of Law No. 19.550 (T. 1984). "

Art. 3rd - Replace subparagraphs (3), (6) and (10) of Article 71 to 73 of the Regulation of Law No. 24.076, adopted by Decree 1738 of 18 September 1992 with the following:

(3) It shall not be considered a violation:

(a) Failures derived from force majeure while properly accredited.

(b) The minor infractions that the Licensor corrects in the event of the application of sanctions by the Regulatory Authority.

This waiver shall not apply if the breach results in serious or irreparable harm or great social impact or has prompted an earlier intimation.

It will not be the obligation of the Regulatory Authority to extend such an intimation to the Licensor prior to the imposition of sanctions.

(6) The final sanctioning act at the administrative headquarters shall constitute an antecedent for the purpose of considering the repetition of the infringement as set by the regulation.

(10) Any fine shall be paid in cash within the QUINCE (15) days of being signed at administrative headquarters, subject to notice of execution, not being eligible for compensation.

Art. 4° - Incorporate as Article 71 to 73 of the Regulations of Law No. 24.076, adopted by Decree No. 1738 of 18 September 1992:

(11) The above rules shall also apply, as appropriate, to offences committed by non-render third parties.

Art. 5° - Approve the model of transport license and the gas distribution model that, as Annexes "A" and "B", respectively, form an integral part of this act, including their respective Sub-Annex I (Basic Rules), II (Service Regulation) and III (Tarifa).

Art. 6° Corporations created by Decree 1189 of 10 July 1992 shall be holders of licences whose model is approved by the preceding Article and shall be granted by the NATIONAL EXECUTIVE PODER, in the terms of Article 6 of the Decree.

Art. 7° - Communicate the BICAMERAL COMMISSION established by article 14 of Law No. 23,696 and the General SINDICATURA of PUBLIC COMPANIES.

Art. 8° - Communicate, publish, give to the National Directorate of the Official Register and archvese. - MENEM. - Domingo F. Cavallo.

NOTE: This Decree is published without Annexes.