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Natural Gas Regulation Of The Law 24076 - Updated Text Of The Norm

Original Language Title: GAS NATURAL REGLAMENTACION DE LA LEY 24076 - Texto actualizado de la norma

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NATURAL GAS Decree 1738/92 Approve the "Regulation of Law No. 24.076", which regulates the transport and distribution of natural gas as a national public service.

Bs. As., 18/9/92

See Background

VISTO Act No. 24,076, regulating the transport and distribution of natural gas as National Public Service, and

CONSIDERING:

It is necessary to regulate the precepts contained in the Act for the purpose of its immediate application and its knowledge by those interested in participating in the process of privatization of Gas of the State Society of the State.

That the economic, social and environmental interests of the Nation and its long-term inhabitants are fully compatible with the increase in the use of natural gas, as this is a preferred source of energy for the preservation of the environment and relatively abundant in the territory of the Nation.

That such an increase in the consumption of natural gas should be accompanied by measures that encourage the maximum efficiency in the use of resources for its transport and distribution, avoiding practices that waste natural gas or damage the environment, and discouraging those that are unnecessaryly onerous when other more appropriate sources of energy are available.

That the best allocation of long-term resources is achieved through the structuring of markets in which the access of the offerors and applicants is as wide as possible, giving rise to the dynamic competition game among the largest number of participants.

That the need to maintain a sustained supply in the long term of public service in safety and quality conditions comparable to countries of similar characteristics is associated with a tariff policy that encourages the efficient operation of service providers.

That the subsidies or privileges that the State decides to grant to certain individuals or regions for reasons of general interest should be explicit, limited in time and have the corresponding resources in the national budget law, without their cost affecting the good functioning of the natural gas industry.

That the new legal framework in force based on Act No. 24,076 and the privatization of Gas of the State Society of the State requires the granting of time and conditions to adapt to it the pre-existing legal situations.

That the National Executive Power is empowered to issue the present act in exercise of its powers under Article 86 (1) and (2) of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . Approve the "Regulation of Law No. 24.076", which as Annex I is an integral part of this Decree.

Art. 2° todas Deplore as of 1 January 1993 all the rules concerning pricing contrary to the provisions of Law 24.076 and its regulations.

Art. 3rd . Starting from the start of operations of societies created by Decree 1.189 of 10 July 1992, the rules of Decree 44 of 7 January 1991 shall cease to apply to the transport and distribution of gas regulated by Annex I to this decree.

Art. 4° Todos All subsidies relating to the price of natural gas granted prior to the date of entry into force of this decree are derogated from 1 January 1993.

Art. 5° This decree shall enter into force from the date of its publication in the Official Gazette.

Art. 6. Communicate, publish, give to the National Directorate of the Official Registry and archvese. .MENEM. . Domingo F. Cavallo.

Annex I

Law No. 24,076

CHAPTER I

REGULAR FRAMEWORK OF ACTIVITY

I - Object

Article 1 de For the purposes of the regulation of Law No. 24.076:

(1) The following definitions shall apply:

"Essential Actives" means (i) that part of the Assets, and (ii) all extensions, aggregates, improvements, replacements, renewals and substitutions made to the Assets during the term of the License, in both cases to the extent that they are indispensable to the provision of the Licensed Service.

"Almacenaje": means the activity of keeping Gas in installations, underground or not, for a period of time, and includes the injection, deposit and withdrawal of the Gas and, if necessary, the liquefaction and regasification of the Gas.

"Captation": means the Gas movement through a Captation System.

"Charger" means the one who hires a Transportation Service either as a user, producer, distributor, storage or marketer.

"Distribution" means the Gas movement through a Distribution System.

"Distributor": It means the distribution service provider.

"Dólar": It is the legal currency in the United States of America.

"Ente": means the National Gas Regulator entity or, to date provided for in Article 90 of this Regulation, the Secretariat.

"Date of Operations Start": means the date on which the licensee companies created by Decree 1.189/92 begin to operate the Transport and Distribution Systems or, if this occurs on various dates, those of such dates as determined by the entity.

"Gas": means processed or unprocessed natural gas, vaporized natural gas, synthetic gas, or any mixture of these gaseous gases, which consist primarily of methane.

"Gas of the State" means Gas of the State Society.

"Law" means Law No. 24.076.

"Ministry" means the Ministry of Economy and Public Works and Services of the Nation or the body that replaces it in its functions and powers.

"Transition period" means the period provided for in Article 83 of the Law, including, where appropriate, the extension provided for.

"Pliego": means the fold of bases and conditions of international public tender No. 33-0150 for the privatization of Gas of the State approved by Resolution MEOSP 874/92 and its modifications.

"Executive Power" means the National Executive Power.

"Prester" means the Carrier or Distributor.

"Regulation" means the present Annex.

"Service Regulation": means the rules and conditions of delivery of the Transportation or Distribution Service that are attached to each habilitation.

"Secretariat" means the Energy Secretariat or the body that replaces it in its functions and powers.

"Uninterruptable service": it will have the meaning indicated in the Service Regulation.

"Captation System" means:

(a) In the case of existing pipes at the date of the Law ' s sanction, existing pipes between a gas production point and a point of entry to a Transport System;

(b) In the case of pipes built after the date of sanction of the Law (i) a pipe system used for the Gas movement from the point of production of the Gas to its entry to a Transport System, or between intermediate points, provided that its length does not exceed the 50 (50) kilometers and its diameter the 12 inches, or (ii) a system of pipes declared "System to Captation" by the effects of the

"Distribution System" means one of the gas pipeline systems and networks for the Gas movement from a Transport System to end users or consumers, described in Annex D of the Fold.

"Transport System" means a gas pipeline system, primarily of high pressure, that:

(a) In the case of pipelines built prior to the sanction of the Law, they integrate the gas pipeline system of the S.A. Gas Conveyor or the S.A. Gas Conveyor, as described in Annex D of the Pliego, or are operated under a transport concession granted under Law No. 17.319;

(b) In the case of pipelines built after the sanction of the Law, (i) exceed in length 50 (50) kilometers or in diameter the 12) inches and have not been declared, for the purposes of the law, members of an Ente Captation System, or (ii) have been declared members of an Ente Transportation System.

"Subdistributor": means the natural or legal person (i) who operates gas pipes that connect a Distribution System with a group of users, or (ii) that operates gas pipes that connect a Transport System with a group of users and has been declared Subdistrubuidor by the Ente either because of being operating such facilities at the date of sanction of the Law, or by being a successor in the rights of the person who so has been breached.

"Transport": means the Gas movement through a Transport System.

"Transporter" means the provider of the Transportation Service.

"Treatment" means dehydration and removal of impurities from the Gas and other steps necessary to put the Gas in a position to be transported.

(2) The period of days provided for in the Law and the Regulations shall be computed in correct days unless otherwise expressly specified or the duration of which does not exceed 15 days.

(3) The public service of Transport and Gas Distribution is subject to national jurisdiction throughout the territory of the Republic.

II General General Policy

Article 2 El The entity shall comply with the objectives set out in Article 2 of the Law, taking into account the following guidelines:

(1) Consumers shall have the right to secure and continuous gas supply services, at prices that are fair and compatible with the long-term maintenance of a public service with such characteristics, taking due account of the efficiency and economy in the provision of the service.

(2) In order to promote the competitiveness of the supply and demand markets of Gas, in the application of the Law or in the successive regulatory rules that are issued, artificial barriers (whether economic, regulatory or any other nature) that restrict the entry to such markets will be eliminated or minimized, as well as the increase in the number of users of the Gas services.

(3) With the exception of Article 83 of the Law for the Transition Period, it is of general interest that the price of the Gas (excluding the price of the Transport and Distribution Services) results from the free market game. It is also of general interest to encourage investments that adequately ensure the provision of long-term Gas, and the construction and maintenance of the necessary infrastructure for such purposes.

(4) The entity will promote the objectives of the Law by applying policies that allow, through the respective rates, the recovery of all reasonable costs, including the cost of capital, to those who efficiently operate the services of Tranporte and Distribution.

(5) In order to apply the policy of free access, the Ente shall issue general rules that are consistent with such principle, including: (i) provisions that set the basis for the equitable sharing of the available capacity among the parties concerned, without prejudice to the priority that corresponds to the non-interruptable service, (ii) provisions that encourage investment to increnate the capacity of the system, and (iii) provisions that incite the most efficient use of the available capacity

(6) In the exercise of its powers in relation to the transport and distribution of Gas, including the fulfilment of its obligation to ensure fair and reasonable rates, the entity must take due account of (i) the need to attract new capitals intended to ensure reliable service, the expansion of markets and the proper maintenance of the facilities, and (ii) the rights of consumers to access a safe and long-term service.

(7) In order to comply with Article 2 (g) of the Act, the entity shall collect such reports as may be necessary to determine the prices of the transport and distribution services in force in the markets of other comparable countries. At the same time, you should take into account the level of rates for the different categories of users and the consumption patterns of the same.

III - Export and Import of Natural Gas

ARTICLE 3° : For the purposes of Article 3° of the Law:

(1) Export authorizations will be issued by MINISTERY OF ENERGY AND MINERY, once the applications are evaluated in accordance with the current regulations. The MINISTERY OF ENERGY And MINERIA will be able to issue the complementary standards necessary for that purpose. (Replaced by art. 2° Decree No. 962/2017 B.O. 27/11/2017)

(2) When natural gas exports involve the construction of pipelines or new connections thereof and/or new installations, the export authorization to be granted as provided in the preceding paragraph, or the tacit approval provided for in Article 3 of the Law, shall not imply authorization for construction or new connections. (Replaced by art. 1 Decree No. 1705/2007 B.O. 21/11/2007)

(3) Export agreements involving the construction of new facilities and/or new connections to pipelines, or the use of any of the existing systems, or other transport alternatives, will be approved by the MINISTERY OF ENERGY and MINERY, following the intervention of the entity. (Replaced by art. 3° Decree No. 962/2017 B.O. 27/11/2017)

(4) The period provided for in Article 3 of the Law shall be computed in working days, and shall begin to run the day following the date on which the regulatory requirements for the granting of export authorization are met. (Replaced by art. 1 Decree No. 1705/2007 B.O. 21/11/2007)

(5) The authorizations issued by the MINISTERY OF ENERGY AND MINERY may provide for the export of surplus gas to the amounts established therein, provided that they are subject to interruption when there are problems of internal supply. In this case it will not be necessary to obtain the approval of each surplus export operation in the authorization, only to be presented to the entity, for information purposes only, the respective contract of which the condition of interruptability must arise and the absence of compensation in the event of such interruption. (Incision replaced by art. 4° Decree No. 962/2017 B.O. 27/11/2017)

(6) Unless a different period of time is foreseen in each authorization, the same will expire if exports do not begin an appropriate regime within 180 days of the date of the authorization or the date on which it was considered.

IV - Transport and Distribution

Article 4° : For the purposes of Article 4 of the Law:

(1) The entity shall determine the requirements to be required in each case in order for the Executive Power to authorize the provision of services for the transportation or distribution of gas by the private legal person and to set up cases of exception in which, in accordance with Article 4 of the Law, it is appropriate to enable a person of public law. The corresponding qualifications shall be granted by the Executive.

(2) Please provide the Ministry with agreements with legal persons of public law that owns pipes connected with existing Gas Transport or Distribution Systems to date, in order to transfer their facilities to the society authorized for the Transport or Distribution, as appropriate, with the system or in the corresponding area. If an agreement is not reached up to Thirty (30) days prior to the date of submission of the offers, the company enabled for the respective system or area will negotiate directly for a period that may not exceed Twelve (12) months counted from the Start of Operations. Alternatively, within those Twelve (12) months the legal person of public law owning the facilities in question may be transformed into a legal person of private law or transfer such facilities to a legal person of private law, in both cases provided that the Ente is authorized to act as a Subdistributor from there on. After the Twelveth (12) months, the subsistence of a legal person of public law shall not be allowed acting in the provision of the service of Transport or Distribution of Gas.

(3) The enabled society shall provide the service in the terms and conditions of the habilitation to all users of their respective system or zone. In its case, if it was essential to use existing facilities in the same facility that had not been owned by Gas of the State and there had not been an agreement with its owner referred to in the preceding paragraph, the Ente shall submit to the Minister of Economy and Public Works and Services for its lifting to the Executive Power the draft law of declaration of public utility and expropriation of the facilities concerned for its timely transfer to those who have been authorized for its exploitation in the conditions.

(4) The appropriate qualifications shall establish the authority of the Providers to reach agreements on the payment of the balance of the cost of the infrastructure works owed to the Start of Operations, which they would have taken over. If the parties fail to reach an agreement within the time limit provided for in the qualification, at the request of a party, the Ent shall establish the conditions under which the Providers may terminate their duties which remain without prejudice to the judicial remedy provided for in Article 66 of the Law.

(5) The qualifications referred to in Article 4 of the Law and which are granted to the beneficiaries resulting from the privatization of Gas of the State shall re-velocate the form of license. Such licenses should include rules on the following points:

(a) Object.

(b) Term of duration.

(c) Service delivery system.

(d) Regime of assets affected to service.

(e) Public domain occupation regime.

(f) Servers and domain restrictions.

(g) Extension and improvement system.

(h) Service and Rates Regulations.

(i) Penalties.

(j) Termination of the license and legal consequences thereof.

(k) Treatment of complaints from users.

(l) Tax regimen.

(m) Supply system.

(n) Relations with the Regulatory Authority.

(o) Applicable law and jurisdiction.

(p) Causes of expiration due to non-observance of the License.

The licenses granted may not be rescued by the Administration, nor will they be modified during their validity without the consent of the licensees. No modifications to the licence (i) shall be deemed to be any modifications that the entity enters in the Service Regulations, without prejudice to the right of the entity or the licensee to require the corresponding adjustment of the rates if the net effect of such modification alters in a favourable or unfavourable sense, respectively, the economic-financial balance existing prior to such modification; and (ii) the adjustments of the Tariff that are attached to the license and that apply, In the event of the termination of a licence, the Ente may modify the terms of the license in force until that time.

(6) In exceptional cases where transportation or distribution services are not provided by private legal persons, the qualification shall be granted in the form of concession.

(7) Entitlements shall be in accordance with the rules of the Act and those of these Regulations. In turn, the Providers shall adjust their performance to the Act, these Regulations and other regulations governing the matter, their respective qualifications and, as appropriate, the transfer contract that they have signed in the context of the privatization process, which shall be in accordance with the applicable regulations.

(8) Only legal persons of private law shall be considered, for the purposes of the first paragraph of Article 4 of the Law, those legal persons which review organizational forms of private law and, either, do not have ownership shares of any of the entities listed in Article 1 of Law No. 23,696, be such entities of national, provincial or municipal jurisdiction or, if such participation is available, are fully subject to the Competition Act.

Article 5° . No regulation.

Article 6 . The Provider shall have the right to a single extension of ten years from the expiration of the initial period of Thirty-Five (35) years of its qualification, provided that he has fulfilled in substance (including the correction of deficiencies observed by the Regulatory Authority) all obligations under Article 4 (7) of this Regulation. The burden of proof of non-compliance shall be borne by the entity.

Article 7° : For the purposes of Article 7 of the Law:

(1) The Ente shall establish the rules of procedure and requirements that shall be required for the tendering of services in case of termination of the qualifications.

(2) The existing Provider who has been subject to satisfactory evaluation in its performance by the Ente may match the best offer of a third party in order to be enabled by a new period of Thirty-Five (35) years when the termination of the qualification has occurred due to the expiration of the corresponding period.

(3) In the event of corresponding the declaration of expiry of the qualification, the Ente shall, in accordance with the circumstances of the case, have the configuration of the actuaries in the authorized society and the best protection of the public interest, (i) that the tender involves the sale of the majority share of the authorized company, in which case operated such sale shall not have effect the declaration of expiry or if established, The option set out in the preceding paragraph (i) shall not exist in cases where the entity so provides when authorizing the liquidation of the Inversion Society as provided for in point 8.4.8 of the solicitation.

Article 8° El The entity shall give notice at least in advance of Ninety (90) days to the requested Provider to continue the provision of the service beyond the date of expiration of the period of its habilitation. During the period of the extension, the legal rules on fees will continue to apply and therefore the Provider may apply for the appropriate adjustments in accordance with the same.

V - Subjects

Article 9° . The Warehouse is subject to the regulation and control of the entity only in matters of security.

Article 10. . No regulation.

Article 11. . No regulation.

Article 12. : For the purposes of Article 12 of the Law:

(1) The Distributors shall have the exclusiveness for the provision of the Distribution Service within the area defined in the respective Entity subject to (i) the access of third parties as authorized by the Ent in accordance with Article 16 of the Law and its respective regulation; (ii) the provisions for the transient continuation of the exploitation of the local distribution networks according to the provisions of Article 4 (2) of the present Regulations; and (iii) the private subsistence of the existing

(2) The activity of the Subdistributors will be regulated by the Ente. Such regulation shall impose on the Subdistributors in their relations with the users the same obligations governing the Distributors.

(3) The liquid oil gas products vaporized, or the mixtures thereof, (whether diluted or not with inert gases) that are distributed through pipes will be subject to regulation in the same way as the Gas.

Article 13. Los The following requirements will apply to situations in which a consumer wants to exercise his right to purchase Gas directly from a producer or marketer:

(1) In all cases, and unless you have agreed on a shorter time with your respective Distributor, the consumer must notify the Ente and the Distributor that corresponds to the area in which the Gas will be received, at least six (6) months in advance, the intention of acquiring Gas to a producer or marketer. This term may not be extended by contractual provision or requirement of the Distributors; and may be reduced by the entity taking into account the market situation. Once again to receive the supply of the Distributor of your area, the agreement of the Distributor will be necessary; in case of refusal the Ente will resolve. (Note Infoleg: By art. 5o of the Resolution No. 1748/2000 from ENARGAS B.O. 16/06/2000, the maximum period referred to in this article is reduced from six (6) to three (3) months so that a consumer can exercise his right to acquire gas to alternative suppliers. )

(2) In advance of the direct acquisition of Gas to the producers or marketers, the user must install at its cost the measuring and flow control equipment of the type accepted by the Distributor or by the Carrier according to the case, unless he agrees with the Distributor or Carrier to pay, in replacement of such installation, a surcharge on the rates whose amount and duration will be fixed in the respective habilitation or, in default, by the entity.

(3) Unless it has direct connection facilities to a Carrier or Producer, the consumer must comply with all the obligations under the Distributor Service Regulations, which result in the transportation and delivery of the Gas subject of direct purchases, in accordance with Article 49 of the Law, and its regulation.

(4) Those who acquire Gas for sale as a motor fuel are excluded from the right granted by Article 13 of the Law. The entity, considering the conduct of the market, may modify this restriction and establish the conditions of exercise of the right.

(5) The Service Regulation will specify the definition of "consumer".

Article 14. . Distributors will not be required to sell Gas to marketers.

Article 15. . The subjects included in Article 15 of the Law shall not be considered, by such inclusion, producers.

VI - Common provisions for Carriers and Distributors

Article 16. El The Ente will establish the rules to be observed in the construction of facilities that require prior authorization to operate.

(1) The Ente will verify compliance with the mandatory investments required by the terms of the qualifications. The Providers shall submit to the Ente the mandatory investment plans within the Twelve (12) months of the Start of Operations Date. Using comparative criteria the Ente will be able to observe the aforementioned plans, whether in terms of physical volumes, unit prices or application schedules. If the Provider does not accept such observations, the discrepancy shall be ventilated in a public hearing.

(2) Any work of magnitude in the pipelines or distribution networks must be approved by the Ente, for which the Providers must inform them using the guidelines and models approved by the Ente. The determination of the works of magnitude that will require the approval of the Entity shall be given by the qualification or, failing, by the Ent.

(3) Unless otherwise provided for in the respective qualification, if these are facilities for the Transport of Gas not provided for in the corresponding qualification, the Carrier shall not be obliged to extend the facilities, but shall permit the construction of the connection and measurement facilities to be determined by the Ente, the cost of which shall be exclusively for those who request them.

(4) Distributors may not object to the connection of their Distribution System with the installations of a third party requesting it, provided that (i) this is required by the Ente; (ii) the Distributor has had the option to build such facilities and has refused to do so; (iii) the third applicant takes full charge of its cost; and (iv) the construction or operation of the new installations is not generally uneconomical, nor does it become uneconomical.

(5) Whenever the Ente empowers a third party to build, in charge of it, facilities connected with a Distributor, the third party will own the facilities that it builds and will be subject to the Law and its regulation.

(6) Whenever the Ente empowers a third party to operate, in charge of it, installations connected with a Distributor, such third party will be considered a Distributor in all that the Ente does not expressly provide otherwise.

Article 17. . Facúltase al Ente a promover de oficio, o a solicitude de interested, todas las acciones legales y medidas cautelares que fuera necesarias para la suspension de la construcción de obras no autorizados, o sudestruct, en cualquier fuero o jurisdicción correspondientes, siendo a dicho efecto de aplicación lo disposiciones por el Article 72 de la Ley, sin perjuicio de las sanciones previstos por la habilitación respectiva o por el Article 71 de la Ley.

Article 18. El The entity shall establish the procedure to be observed by the carriers or distributors for the construction of new works, and the expansion or modification of existing ones. Such a procedure shall include appropriate pre-release publications in order to allow the views of the parties concerned to be heard, and to resolve any problems or objections arising prior to the commencement of the work. The objections made by a Provider based on the prejudice that the construction or expansion of the facilities proposed by another Provider causes or may cause it shall be considered in a restrictive manner. The opponent's Provider must prove that the proposed work will result in a harmful alteration of the economic equation - financial considered in the respective habilitation, or an unjustified increase in the rates.

Article 19. . In order to authorize the abandonment of transportation or distribution facilities, or the cessation of service delivery. The entity shall consider among other factors of importance to the Interest of the parties receiving the service that will be abandoned to the impact of the continuation of the service on the party requesting the abandonment, the interest of the parties receiving the service that will be abandoned, and the general interest of the third parties.

No Provider may be obliged to maintain a service that is provided to a consumer or user who does not comply with its regulatory or conventional obligations.

Article 20. . No regulation.

Article 21. . No regulation.

Article 22. s In connection with the servitudes provided for in Articles 22 and 52 (k) of the Law, the following rules shall be applied:

(1) The rights granted to carriers and distributors by Article 22 of the Law include those provided for in all the regulations of the Mining Code listed by Article 66 of Law 17.319.

(2) The procedure provided for in Article 22 of the Law on the Settlement of Disputes shall apply to the new servitudes authorized by the entity from the validity of the Act.

(3) The permits to Carriers or Distributors shall include the assignment of existing administrative servitudes in their favour, without requiring for registration the express conformity of the owner or occupant of the affected property, or that of the owner at the time of the granting of the same. Such assignment shall be communicated to the owners or occupants of the preds affected by the procedure established by the Ente.

(4) Owners or occupants for any title of the affected properties shall have the right to be compensated for the damages arising from the constitution of the bonds, without in any case being able to oppose their constitution and/or registration. Owners or occupants may not object to the occupation of the properties affected to the servitude for the purposes of the construction, use and maintenance of the facilities used in the public service, provided that the respective Provider successfully affidavits, by means of affidavit provided to the Ente, any damages.

(5) The Registers of Property shall register the existing bonds for Gas of the State under the provisions of the Law, directly on behalf of the Carrier or Distributor concerned. To that end, the certified copy by public scribe of the respective administrative resolution issued by the Ente shall be sufficient, together with the documents that determine the regulations that the same sanction, and from which the authorized trace of the pipeline or distribution network arises and the restrictions on the use of the affected properties.

(6) The Registers of Property shall be recorded in the certificates and records that render the existence of the administrative servitudes provided for in Article 22 of the Law that had been communicated to them by the entity, even if their registration is in progress, indicating such circumstances.

(7) Expenditures requiring registration of existing or used State Gas bonds to the Start of Operations date, and in the case of payment of the balance of the indemnities agreed upon or due for the constitution and use of such bonds until the end of the five (5) years from that date, shall be satisfied by Gas of the State, or in the absence of the respective State, which may apply to such licenses and may apply to such effect upon the recharge. (Note Infoleg: By arts. 1 and 2° Decree No. 186/1999 B.O. 15/3/99, the period originally provided for in this article for three (3) years is extended to complete the Regularization Task of Gas Pipelines that were owned by the Company ex-GAS OF THE STATE SOCIEDAD and which were transferred to the current Gas Transport and Distribution Licensors. The extension provided is to the sole effect of completing the registration task and complying with the awards due by the Company ex-GAS OF THE STATE SOCIEDAD and/or the NATIONAL STATE, but in any way implies extending the time limit for the Gas Licensors to take charge, starting from the original expiration date, of the payments for periodic meat for the affected superficiaries.);

(8) Invite the Provinces to implement procedures to simplify, systematize and reduce the cost of the registration procedure of the existing gas pipeline administrative bonds in their respective jurisdictions and authorized by the Ente or the divisions that preceded it, and authorize the Ente to conclude the agreements with the Provinces that need to do so.

(9) No provision of the Act or of this Regulation may be construed as derogating from prescriptions already fulfilled or suspending or discontinuing prescriptive periods in progress.

(10) The qualifications may provide for the right of their holders to be compensated by legal persons of national, provincial or municipal law, and private or mixed enterprises providing public services or contractors of public works, which require, in accordance with the Regulatory Authority, the removal of the facilities of such holders for the execution of other public works.

Article 23. . The Ente shall have initial administrative jurisdiction to deal with complaints of unfair competition or abuse of dominant position on the market by Carriers or Distributors, any complaints received by the enforcement authorities of Laws No. 22.802 and No. 22.262 concerning Providers subject to the Ente shall be forwarded without further processing to the Ente. The Ente shall process the respective case, which shall be elevated, with its proposal of decision, to the competent administrative body which shall ultimately resolve.

The entity may establish criteria for determining general rules of action.

When the Ente plans to issue an act of general scope by applying Article 23 of the Law, it shall publish its project and grant a time limit to the interested parties to submit their comments thereon.

Article 24. : For the purposes of article 24 of the Law:

(1) Distributors and Carriers shall inform the Ente, on a regular basis determined by the Ente, of any precautions they have taken to assure users of the Uninterrupted Service.

(2) The Ente shall establish the minimum conditions to be met by the Distributors, from the dates specified by the Ente, so that the service is not considered interrupted.

VII - Servicing

Article 25. . For the purposes of Article 25 of the Law it shall be understood that a request for services within the area of a Distributor is not reasonable when it cannot be satisfied by obtaining a benefit according to the terms of the qualification. To the extent that there is a disagreement between the Distributor and an applicant for the service in relation to whether a request for new services is or is not reasonable, the entity shall exercise its authority in accordance with Article 29 of the Law upon request of any of the parties. In all cases the greatest costs for the Distributor, if any, shall be fully offset by the requester.

Article 26. : For the purposes of Article 26 of the Law:

(1) The provision of services for the Transport or Distribution of Gas implies (i) the existence of a contract between the parties that in each case corresponds to the Law, its regulation and the Regulation of the Service that is included in the respective habilitation, or (ii) the application of the Regulations of the Service included in the respective habilitation and corresponding according to the category of the user or consumer.

(2) Undiscriminatory and free access to the capacity available at every time of the Carriers, or Distributors, where appropriate, is an essential condition for meeting the objectives of the Law.

(3) Undiscriminatory and free access will mean, according to the Service Regulations, the right to access the available capacity of the Carrier or Distributor on an equal basis with other clients.

(4) In no case shall access to service be conditioned upon the provision of other non-related services or accessories, or subject to other obligations other than those included in the corresponding Service Regulations.

(5) Facify the entity to issue rules of general scope that govern open access, to include them as a requirement of the corresponding qualifications, and to review the Regulations of the Service of the Providers in order to adjust the same to this end.

(6) The qualifications will also include the rules to be observed for the interruption of service by force majeure or other justified circumstances, the modalities of access to each type of service, and other modalities that the Ente deems appropriate to include.

(7) Users who hire services with their zonal dealer, where there are charges for reserve capacity, obligations to take or pay or other equivalents, will be authorized to resell the service received at the delivery point of the corresponding transport system ("city gate"), without the need for approval of the firm Licensor of zone distribution.

Users (or those acting on their own) who use the right to resell such services shall be subject to the procedures of the ELECTRONIC MERCATE OF GAS. (Concluded by art. 26 Decree No. 180/2004 B.O. 16/2/2004)

Article 27. . No regulation.

Article 28. . If a carrier or distributor refuses to provide a requested service, the Ente shall inform the Ente in writing of the reasons for such refusal within the period established by Article 28 of the Law.

Article 29. El The entity will establish the complementary rules of the procedure that the parties will observe in order to resolve their differences in the supply of Gas or access to the available transport capacity. In relation to the Carriers and the Distributors, the provisions of Article 16 of the Law and these Regulations shall apply.

Article 30. . The quality specifications of the transportable gas applicable to the carriers or distributors will be those established in the respective Regulations of the Service. Any modification to such requirements must be previously authorized by the entity.

Article 31. . The entity shall monitor the performance by the Carriers and Distributors of their obligations under the investment programme committed by them, and the maintenance of the facilities, in order to ensure the continuity and security of the service, and shall periodically evaluate the quality of the services provided, in the terms of Articles 32 and 39 of the Law. For such purposes, it may require such reports as may be necessary from the Providers.

Article 32. . Each enabling will specify the required investments and procedures that allow the entity to control and revise the investment program and its compliance.

VIII - Limitations

Article 33. . Transporters (i) are prohibited from the usual purchase or sale of Gas on their own or of third parties, directly or through marketers; and (ii) the intermediation or brokerage in the sale of Gas. Periodically the Transporters will be able to purchase Gas to meet their normal operating needs of the system. If necessary, they may also periodically dispose of amounts of Gas as a result of reductions in the operational inventory by selling such inventory surplus.

The entity shall periodically review the inventory volumes, volume and frequency of the above-mentioned operations in order to verify compliance with Article 33 of the Law, and that the inventory levels are not reduced below the required limit to maintain the operation of the systems as determined by each Carrier.

The prohibition of Article 33 of the Law does not include the sale of raw materials, or by-products that are not Gas basically consisting of methane in gaseous state.

Article 34. de For the purposes of applying the limitations established by Article 34 of the Law, the following rules shall be taken into account:

(1) For the purposes of the first four paragraphs of this article, legal persons who are subject to common control with another legal person expressly subject to restriction shall also be deemed to be included in the restriction.

(2) For the purposes of the first two paragraphs of that article, the groups in which controlling participation is reached only by the sum of the participations of Two (2) or more of the different categories of subjects mentioned there shall not be considered included in the restriction provided.

(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. (Replaced by art. 1 Decree No. 2255/92 B.O. 7/12/1992);

(4) The subjects of the Act shall inform the Ent (i) of the existence of agreements between shareholders or transfers of shares that may originate situations of control not permitted by Article 34 of the Law or that they exceed the Five by Hundred (5%) of shares with the right to vote, within the Ten (10) days of the respective agreement or transfer; or ()ii) annually, the composition of their share capital.

(5) Carriers or Distributors may provide own or third-party Warehouse services, or exploit separate gas plants or processors by maintaining separate accounting, or by controlled companies as provided by the entity.

(6) The restrictions imposed by the first two paragraphs of the article also reach the Carrier or Distributor who operates as a producer or who controls a producer.

(7) Licensors of the gas distribution service by networks, or their shareholders, may have a controlling participation in no more than one company that, not being a distributor, subdistributor or natural gas producer, is engaged in the marketing of gas, in the terms of Articles 14 and 83 of Law No. 24.076 and its regulation. Such a company must be organized in the form of "anonymous society" with non-endoseable nominative actions, and register in the Register of Enabling Commercializers, its social object will be exclusively the commercialization of gas, and may not have any direct or indirect participation in any other Subject of the Gas Industry. The SECRETARIAT OF ENERGIA dependent on the FEDERAL MINISTERY OF PLANIFICATION, PUBLICA INVERSION AND SERVICES, may establish maximum limits to market participation, in the licensed area of the distributor in question, applicable to those dealers in which the distributors or their shareholders possess, directly or indirectly, part or the total of the capital. In addition, the SECRETARIAT OF ENERGIA under FEDERAL PLANNING MINISTERY, PUBLICA INVERSION and SERVICES, may set limits on the participation of commercial companies on the different gas and transport markets, according to the observed evolution of the industry. (Apartment incorporated by art. 28 of Decree No. 180/2004 B.O. 16/2/2004)

Article 35. . No regulation.

Article 36. ). It will not apply to shareholdings 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). (text incorporated by art. 2° Decree No. 2255/1992 B.O. 7/12/1992);

IX - Rates

Article 37. : For the purposes of Article 37 of the Law:

(1) Gas Price: means the following price of the Gas at the point of entry to the Transport System: (i) during the Transition Period, the one established by the Ministry; (ii) after the end of the Transition period, which is negotiated in accordance with Articles 12 and 13 of the Law.

(2) Transport fee: means the remuneration of the Transport Service, in its different modalities, contracted by any Charger.

(3) Distribution fee: means the remuneration of the Distribution Service, which (i) in the case of purchase of Gas by the user to the Distributor, will be included in the final rate of the Gas to the user; or (ii) in the case of purchase of Gas by the user to whom it is not the Distributor of its respective area, will consist of a separate charge.

(4) The rates in force at each time will be included in the four rate of each Provider who operates as an annex to the corresponding qualification.

(5) Variations of the purchase price of the Gas will be transferred to the final rate to the user in such a way that they do not produce benefits or losses to the Distributor or the Carrier under the mechanism, within the time frames and with the periodicity established in the corresponding habilitation.

(6) The variations of the Transport Rate that the Distributors suffer will be transferred to the final rate to the user under the mechanism, within the time frames, and with the periodicity established in the corresponding habilitation.

(7) The Ente shall establish the information requirements necessary to control the proper application of the mechanism provided for in the habilitation, not being able to suspend, limit or reject the adjustments in the rates except when and to the extent that (i) errors have been detected in the calculations or their base and/or in the procedures applied, or (ii) the pevista circumstance has been set out in Article 38 of this Regulation.

Article 38. El The entity may require the active subjects of the Law to submit copies of the contracts for the sale of Gas and Transport to be concluded, and/or the provision of aggregate information on the matter.

In the exercise of the powers conferred by Article 38 (c) of the Law, the entity shall not use an automatic criterion of less cost, but shall, for information purposes, take into account all the circumstances of the case, including the levels of prices in the markets in conditions and similar volumes. The Ente may publish, for information purposes, the observed price levels in general and without violating commercial confidentiality.

In the absence of bad faith, prices freely negotiated between independent parties will be presumed fair and reasonable. In the face of such presumption the challenger will bear the burden of proof of unjustified excess. The entity shall determine in which cases it should be considered not to be independent parties. The Ente shall have the right to obtain information from the subjects of the Act without violating commercial confidentiality. The decision of the entity to prevent the transfer of excess in the price paid by the Distributor shall not invalidate contracts and their effects between the parties involved.

Rule 39. Unregulated.

Article 40. Unregulated.

Article 41. s In the normal and periodic adequacy of the fees authorized, the entity will conform to the following guidelines:

(1) Transportation and Distribution fees will be calculated in Dollars. The resulting Schedule of Tariffs shall be expressed in convertible weights under Law No. 23.928, taking into account for its conversion to weight the parity established in Article 3 of Decree No. 2.128/91.

(2) The efficiency factor mentioned in the first paragraph of Article 41 of the Law consists of two elements whose value must be determined by the entity on the basis of hearing all interested parties.

The first element that will be included in the corresponding formulas will act as a moderator of periodic adjustments in order to induce greater efficiency in service delivery. This item will have a value equal to Zero (0) during the first Five (5) years counted from the Start of Operations, in consideration of the investment requirements required to reach international service levels.

The remaining element shall be applied only if the entity or other competent authority in accordance with the Ente requires additional investments to those originally provided for in the respective qualifications and cannot be recovered by the current rates. The entity shall, after consultation with the interested parties, establish a substantial value to the element mentioned here sufficient for the Providers to obtain income in accordance with Article 39 of the Law.

(3) The methodology for adjusting the rates of Transporters and Distributors on the basis of international market indicators referred to in Article 41 of the Law shall be included in the respective qualifications. The entity shall establish the necessary information requirements to control the proper application of the mechanism provided for in the qualification, within the time frames and with the periodicity established therein. The entity may not suspend, limit or reject such tariff adjustments except when and to the extent that errors have been detected in the calculations and/or the procedures applied.

The Providers may freely agree less than the maximum rates established by the Ente, unless the terms of the respective Entity or decision expressly provide otherwise in relation to any of the services or categories of users, but in no case the same may charge fees (i) less than the incremental cost of the service rendered, or (ii) charge for equal service preferential rates between Similar Users located in undifferentiated geographical areas.

Article 42. . Within the Thirty-six (36) months of the Start of Operations date, the entity shall issue rules to which the Carriers and the Distributors shall adjust with respect to the methodology for the review of the fees referred to in Article 42 of the Law.

The overall review of the method used for calculating tariffs will never have retroactive effects or compensatory adjustments, and will be maintained for a new period of five (5) years after its validity, seeking to observe the principles of stability, coherence and predictability for both the Consumers and the Providers.

The entity shall establish the rules of procedure for the revision of the method used in the calculation of the rates that ensure the participation of the subjects of the Law.

Article 43. El The entity may establish specific rules regarding discount rates, or differences in the respective tariff tables and regulations of the Service, including by exemplizing and disseminating cases of differences that it authorizes or prohibits because it is discriminatory, through acts of general or individual scope, which may be taken as precedents. In the case of acts of general scope, the Ente may notify the interested parties in order to enable them to participate prior to the issuance of an act, without prejudice to taking such urgent measures that prevent irreparable damage.

Rule 44. . Initial fees included in the respective qualifications should include the information required by Article 44 of the Law. The entity shall establish the procedure for recording the tariff tables and regulations of the Service for consultation by consumers and stakeholders.

Article 45. . Within the Twelve (12) months of the Start of Operations date, the entity shall issue rules to which the Carriers and the Distributors shall conform with respect to the aspects referred to in article 45 of the Law.

Within the same period, the entity shall propose the criteria for determining the profitability referred to in Article 39 of the Law.

Article 46. El The entity must establish the requirements to be met by the Carriers, Distributors or Consumers in their requests for modification of Rates or the Service Regulation in order to establish the need for such modifications.

The amendments provided for in Article 46 of the Law shall be based on specific circumstances not previously provided, and may not be recurrent. They do not include the readjustment provided for in Article 42 of the Law.

The modifications to the Service Regulations that do not imply the alteration of the current rates may be requested, in the form and with the frequency that establishes the regulation that dictates the Ente, after a year of validity of the respective qualification. Mediating justified cause may require such modifications prior to such time period.

Article 47. . In the procedure provided for in Article 47 of the Law, whoever requests or promotes the modification will bear the burden of proof of necessity and reasonability of the requested modification or proposal of office.

Article 48. . In the granting of subsidies, privileges or preferences, or in the decision to continue the existing subsidies to the date of the sanction of the Law, the principle of indifference for the Distributor or Carrier shall be observed, in such a way that its income is not altered, nor should it bear financial costs, or see the regular flow of its collection modified for that cause.

The Carrier or Distributor shall have the right to be compensated for by the reduction of income or increase of the financial costs incurred by such measures during the same period in which they occur.

Article 49. . When a consumer who has usually received Gas through the use of the Distributor's facilities, exercises his right to install a direct connection with the Carrier or Producer, in order to acquire Gas directly from a producer or marketer, the provisions of Article 13 of this Regulation shall apply.

X - National Gas Regulator

Article 50. . In application of Article 50, in fine, of the Law, the entity shall promote the participation of the provinces that correspond to each area of Distribution in the regional delegations in the conditions that it determines, to ensure the uniformity of criteria applicable to similar situations in all regions of the country.

Rule 51. La The autarchy of the Ente will be full and include, among others, budgetary and administrative aspects. Please refer to the Ministry to determine and transfer to the entity, the movable and immovable property owned by the National State or Gas State of which the latter is the sole owner.

Rule 52. Las The functions and powers provided for in Article 52 of the Law shall be regulated and applied by the entity in accordance with the Basic Rules of Entitlements granted by the Executive Branch and the following guidelines:

(1) In order to comply with the provisions of Article 2 (e) of the Law, the entity shall be entitled to order short-term temporary reassignments of the firm (i) capacity of one Carrier to another, and (ii) between Distributors, in case, and to the extent, that the entity determines that such reassignment is necessary to prevent or mitigate the restriction of higher priority uses. In making such decisions, the entity shall establish its duration.

(2) In order to comply with Article 2 (f) of the Act, the entity shall be empowered to issue regulations in order to avoid or diminish the inefficient use of gas, and to protect the environment and increase the rational use of Gas.

(3) Pursuant to Article 52 (p) of the Law, the entity shall publish an annual report containing the developments produced during the year, as well as a chapter on the performance of the industry in such areas as customer claims, compliance with the standards of service, breaches of the security standards, etc., and may make public an order of merit of the Providers for their performance in these aspects.

(4) The Providers should make the greatest efforts to ensure that the maximum number of consumer claims is resolved in the first instance by themselves, avoiding as far as possible they are referred to the entity. This may impose charges on the Providers for the processing of cases that could be solved by themselves.

(5) The Ente will be empowered to determine the type of insurance that the Providers will have to hire, as well as the minimum amounts insured, including liability insurance.

(6) The Ente shall sanction, with the prior intervention of the Providers, the rules governing the access of the Providers to public and private properties in order to review the meters and to control and verify the devices and equipment that use Gas.

(7) The Ente will process consumer claims and conflicts between operators using an internal administrative process for simple cases, and through public hearings in complex or large cases or when no solution has been achieved through the use of the first method.

(8) The Ente will be empowered to conduct surprise audits to the Providers when it properly presumes the existence of dishonest practices or simple concealment of the information.

Article 53. El The Executive Power will specify, by designating the directors of the entity, who assumes as president, vice president, first, second and third vowel.

Article 54. . For the purposes of the appointment of the members of the Board of Directors, the Secretariat will conduct a selection process to ensure that the final choice is made between professionals with sufficient knowledge and background.

Article 55. . In the event that the Commission of the Congress of the Nation, referred to in the second paragraph of Article 55 of the Law, the Executive Power shall communicate the basis of the designations or remotions to the presidents of both Houses.

Article 56. . No regulation.

Article 57. . No regulation.

Article 58. El The directory may not be sessed without the presence of the president of the Ente or the vice president who replaces it, or of those who have previously appointed in its replacement.

Article 59. . No regulation.

Article 60. . The entity, within the Sixty (60) business days counted from the dictation of the act of designation of the members of its directorate, shall elevate to the Ministry for the purpose of its approval a general rule that regulates its financial, heritage and accounting management.

Rule 61. El The entity will have financial autarchy in accordance with the budgetary guidelines approved by the National Congress.

Article 62. El The entity will set the value of the control and control rate in its annual budget. In the event of not being approved Thirty (30) days before the start of its administrative period, the rate of the previous year may be applied provisionally until the approval of the annual budget.

Article 63. . The Ente will determine the mechanisms for the collection and administration of the control and control rate. Any surplus resulting from the budget execution shall be assigned to the following year. The verification and control rate initially applicable will be set by the Ministry and announced before the submission of the offers in the process of privatization of Gas of the State.

Article 64. El The entity shall regulate the interest rate and the mechanisms to apply in case of a arrears by the control and control rate.

XI - Procedures and Jurisdictional Control

Article 65 to 70. Las The provisions of Section XI of Chapter I of the Law shall be regulated by the entity in accordance with the following rules and principles:

(1) Unless the Act or this Regulation expressly provides for a different time limit, administrative silence shall be set according to the time limits provided for by the Administrative Procedures Act; the entity may, in its regulations, abbreviate but not extend these last time periods, or provide the affirmative nature of silence.

(2) The procedures adopted by the Entity for the settlement of disputes or the investigation of complaints shall provide for:

(a) Preventing the handling of manifestly improper allegations, or whose entity does not justify the availability of administrative activity;

(b) to accumulate in one file all complaints that may be handled simultaneously and which may result in contradictory decisions provided that this does not imply retrogressing the status of the proceedings;

(c) To prevent the accused from being tried more than once for the same offence;

(d) The costs and costs involved in the challenge and the defence are correct.

(3) The remedy provided for in Article 66 of the Law shall be freely and for the sole purpose of return. (Replaced by art. 1 Decree No. 692/1995 B.O. 23/5/1995);

(4) The public hearings shall be notified to the parties in accordance with article 41 of Decree 1.759/72 t.o. 1991 and to the other parties concerned by edicts published sufficiently in advance in the form, places, and by means of the regulation issued by the Ente.

(5) It will not be necessary to exhaust the administrative way if by the nature of the disputed issue, and the preceding acts of the entity, the administrative will contrary to the position sustained by the person concerned is known, resulting in such a futile delay. This subparagraph shall not apply where there are actually controversial issues.

(6) All information received by the Ente of the holders of the qualifications will be available to the public within the guidelines set to allow their use without disrupting the management of the Ente. The information that such holders request is fundamentally considered confidential is excluded, when the entity confines it to such character, in which case the entity shall take the necessary measures to ensure, within reasonably possible, such confidentiality.

(7) The entity shall issue the rules of procedure applicable to the resolution of disputes under Article 66 of the Law. They may include requirements that seek the brevity and synthesis of individual presentations in order to facilitate their consideration by the entity.

(8) Without prejudice to the other topics that the Entity decides to include, Article 68 (a) of the Law shall be deemed to include the five-year review of the tariff table provided for in Article 42 thereof.

(9) The requirement of the public hearing under Article 68 of the Law shall be limited to the resolution of specific disputes.

(10) The sanction of general rules shall be preceded by the publicity of the project or its basic guidelines and by the granting of a time limit to those concerned to submit written comments. The public hearing procedure may be used to this effect only when the public impact of the subject so warrants.

(11) The filing of an appeal shall not be necessary for administrative proceedings to be exhausted for the purposes of the judicial remedy provided for in Article 70 of the Law.

(12) The appeal shall not be appropriate when the dispute has arisen between a Provider and another subject of the Law or industry or another particular, in which case the remedy provided for in article 66 of the Law shall proceed.

13) (Devoted part) by art. 5° Decree No. 962/2017 B.O. 27/11/2017)

XII - Contraventions and Sanctions

Article 71 to 73: The provisions of Section XII of Chapter I of the Law shall be regulated by the entity in accordance with the following rules and principles:

(1) The penalties for the benefitors, their directors, employees or shareholders shall be provided in the terms of the respective qualification, subject to application of the general rules provided for in this article.

(2) Sanctions will be paid attention to:

(a) The gravity and reiteration of the offence.

(b) The difficulties or damages caused by the violation to the users of the service provided or to third parties.

(c) The degree of public interest involvement.

(d) The degree of compliance with the conditions laid down in the qualification for the service concerned, if any.

(e) The deliberate concealment of the infractional situation through incorrect registrations, erroneous statements or other similar arbits.

(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.

(Section 3 replaced by art. 3rd Decree No. 2255/1992 B.O. 7/12/1992);

(4) The application of sanctions shall be independent of the obligation to reintegrate or compensate the unduly perceived rates of users, with interest, or to compensate the damages caused to the State, users or third parties for the offence.

(5) Offences to the regulatory rules shall be formal and shall be set up irrespective of the dolo or the fault of the offender, except where the contrary is expressly provided in this Decree or in the respective qualifications.

(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. (Replaced by art. 3° Decree No. 2255/1992 B.O. 7/12/1992);

(7) The application of sanctions will not prevent the Ente from promoting actions that persecute or extinguish the habilitation.

(8) The application of sanctions will follow the procedure established by the Ente with due respect for 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 discard.

(9) (a) The remedy provided for in article 73 of Law No. 24076 shall have suspensive effect, provided that with its filing it is credited to having made the order of the Tribunal a dinerary deposit in custody, equivalent to the amount of the penalty incurred. Failure to comply with such a deposit will be the only return effect.

(b) If the penalty imposed is confirmed, the deposit in caption shall be charged with the payment of the penalty, without prejudice to the other compensations corresponding to interest and costs.

(c) In the event of a complete or partial revoking of the penalty, the deposit in caption shall be returned in its entirety or in the appropriate part upon notification of the judgement.

(Section 9 replaced by art. 2° Decree No. 692/1995 B.O. 23/5/1995);

(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. (Replaced by art. 3° Decree No. 2255/1992 B.O. 7/12/1992);

(11) The above rules shall also apply, as appropriate, to offences committed by non-render third parties. (Included by Article 4 of the Decree No. 2255/1992 B.O. 7/12/1992);

CHAPTER II

STATE GAS PRIVATIZATION

Article 74 to 81. de For the purposes of Articles 74 to 81 of the Law:

(1) Decree 1.189/92 is a regulation of Chapter II of the Law.

(2) The start-up balance of the companies constituted by Decree 1.189/92 will reflect the assets and liabilities assigned to each of them, evaluating the first on the basis of the sale price of the respective majority package proportionally adjusted and adding the total amount of the liabilities transferred to the respective company.

CHAPTER III

TRANSITION

Article 82. . Article 3 of Decree No. 437/92 shall also apply to the first paragraph of Article 82 of the Law.

Article 83. . No regulation.

Article 84. de It will be authority to apply the Law:

(a) With regard to its Chapters II and III, except the last part of Article 84, the Ministry.

(b) With regard to its remaining provisions, the Ent.

CHAPTER IV

TRANSITORY PROVISIONS

Article 85. . Article 85 of the Law is covered by the powers referred to in Article 11 of Decree 1189/92.

Article 86. : For the purposes of Article 86 of the Law:

(1) The powers recognized in the contracts or agreements in which Gas of the State is a party and in his favour, in terms of the control of security, the dictation of quality standards and regulations of general scope, shall be exercised by the entity, beginning with the Date of Operations.

(2) Within the Twelve (12) months of the Start of Operations date, the Ente will issue the technical and security standards by adapting those currently in force according to the guidelines followed in third countries with a similar regulatory system. This work will be done with the collaboration of the Providers.

Article 87. . No regulation.

Article 88. . The contracts for the purchase, sale, or processing of Gas, or ethank, propane or butano, and the commitments for the transportation of Gas held prior to the Law for Gas of the State, shall be adapted to the new regulatory framework in force from the Start of Operations, and to the new tariff scheme without prejudice to the provisions of article 88 of the Law for the aforementioned assumptions.

Producers who have acquired contractual rights to transport capacity prior to the Start of Operations shall affect such capacity, first of all, to the attention of the needs of the Distributor Non-Interruptable Service, until the entity determines that there is surplus transport capacity. The parties, their successors or assignees shall endeavour in good faith to equitably adapt their obligations to the new conditions in force, preserving as far as possible the continuity of service.

The remaining contracts or agreements entered into prior to the application of the Act which, at the discretion of the Secretariat, contain clauses contrary to the said Law or to this Regulation, or whose compliance becomes impossible as a result of the new applicable legal framework or the process of privatization of State Gas, or are incompatible with such legal framework or process, or impossipulate such process, may be terminated by a pre-avise of Treinta (30) Compensation shall be set by the Secretariat in accordance with Article 48 of Law No. 23,696, subject to judicial review. No dispute concerning the termination or enforcement of such contracts, or due compensation, may be used as a cause to suspend or in any way hinder the process of privatization of State Gas.

Article 89. . No regulation.

Article 90. El The Ministry shall determine the date on which, after the steps provided for in Article 90 of the Law, the entity shall assume the processing and resolution of matters attributed to it by the Law.

Article 91. . No regulation.

CHAPTER V

COMPLEMENTARY PROVISIONS

Article 93. . No regulation.

Article 94. . No regulation.

Article 95. : For the purposes of Article 95 of the Law:

(1) It is presumed, except evidence to the contrary, that all facilities operated by Gas del Estado to the Start of Operations without having in their respect an express act emanated from Gas del Estado recognizing the property of third parties, are owned by Gas del Estado.

(2) No natural or legal person, of public law or of private law, may claim any law that obstructs, prevents or delays the privatization process provided for by Decree 1.189/92 and the rules that are issued to supplement, modify or replace it. In its case, the property rights affected by Article 95 of the Law and which are eventually invoked shall be replaced by compensation equivalent to the value of investments made and not amortized, which shall be fixed by the entity, subject to judicial review, and supported by Gas of the State unless otherwise expressly provided in the respective qualification.

Article 96. todas Default all provisions, resolutions and other administrative acts of general or particular scope to date, to the extent that they are contradictory to the new regulatory framework for the Gas industry.

Article 97. . No regulation.

Article 98. . No regulation.

Background

- Annex I, article 3, paragraph (1) incorporated by art. 1st Decree No. 893/2016 B.O. 26/07/2016. Watch: from the date of publication;

- Annex I, article 3, paragraph (1) replaced by art. 1 Decree No. 1705/2007 B.O. 21/11/2007;

- Annex I, article 3, Substituted by art. 1 Decree No. 1705/2007 B.O. 21/11/2007;

- Annex I, article 3, Substituted by art. 1 Decree No. 1705/2007 B.O. 21/11/2007;

- Annex I, article 65 to 70, subparagraph 13) incorporated by art. 32 Decree No. 180/2004 B.O. 16/2/2004;

- Annex I, article 3°, subparagraphs (1), (2), (3), (4) and (5), replaced by art. 1 Decree No. 951/1995 B.O. 11/7/1995.