VISTO Issue No. 750-002516/96 of the Register of the MINISTERY of ECONOMY AND ARTWS AND PUBLIC SERVICES, by which it processes the regime of determination of the area on which the canon of exploitation provided for in Article 58 of Law No. 17.319 must be liquidated and paid,
That the dilution of the above-mentioned issue, whose background works glossed in these acts, requires that it be considered not only in the light of the provisions of Law No. 17.319 and its regulatory decrees, but also under the view of Law No. 23.696, in the special regime that allowed the expansion of the national oil industry.
That one of the fundamental pillars of the State Reform was the deregulation of the hydrocarbons industry, through the reconversion and transfer of the rights of the state-owned ex-YACEFUL PETROLIFERS SOCIEDAD OF THE STATE to private activity.
That the implementation of this policy made it necessary to bring the regulations into line with Law No. 17.319 with the powers granted to the NATIONAL EXECUTIVE PODER by Law No. 23.696, which authorized non-substantial deviations from that regulation.
As a result, the question of the canon of exploitation is focused on the surfaces of the areas of the concessions of exploitation granted under the provisions of Decree No. 1055 of 10 October 1989, Decree No. 1212 of 8 November 1989, Decree No. 1589 of 27 December 1989, and Decree No. 2411 of 12 November 1991 and Law No. 2445.1.
That the objective of incentivizing the investment of risk, of expanding the number of participants in the industry and obtaining a quantity of free availability hydrocarbons that would allow the deregulation of the prices and industrial activities of the sector, implied the respect of the rights acquired by the contractors of the ex-YACENCIAS PETROLIFEROS SOCIEDAD DEL ESTADO, which constituted sufficient basis for the areas of the concessions.
That this situation, in which the areas of the concessions exceed the lots of exploitation has led to differences of criterion between the Implementation Authority and the concessionaries for the exploitation of hydrocarbons.
That the solution of the dispute should reconcile the legal and political aspects of the deregulation of the hydrocarbon sector, that is, greater exploration, the development of reserves and greater production.
That in that sense, the canon regime appears as a useful tool for the purpose of further exploration of the non-orelic surfaces of the areas granted, and to induce the advance restitution of those surfaces that the concessionaire considers not attractive to his projects.
The Implementation Authority has the evidence to establish a regime for the payment of the canon of exploitation that conjures the explicit objectives while ensuring respect for the rights acquired by the concession holders.
That is why it is appropriate to instruct SECRETARIAT OF ENERGY under the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES in order to dictate the technical regulation for the implementation of Article 58 of Law No. 17.319, so that the emerging situations of deregulation and transformation of the sector are contemplated.
That the NATIONAL EXECUTIVE POWER is empowered to issue this measure under the emerging powers of Article 99, paragraphs 1 and 2 of the NATIONAL CONSTITUTION, and Articles 4 and 98 of Act No. 17.319.
THE PRESIDENT OF THE ARGENTINA NATION
RIGHT:Article 1Instruct the SECRETARIAT OF ENERGIA under the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES so that in its capacity as the Authority for the Application of Law No. 17.319 dictate the technical regulation for the implementation of Article 58 of the same Law, in relation to concessions of exploitation and supplementary exploration of hydrocarbons that fall over the following groups of Areas:
(a) AREAS SECUNDARIAS, understood by such concessions of exploitation, supplementary exploration and development of hydrocarbons granted by the International Public Competition as a result of Decrees No. 1055 of 10 October 1989, No. 1212 of 8 November 1989, and No. 1589 of 27 December 1989.
(b) AREAS RECONVERTIDAS, understood by such those covered by concessions of exploitation granted as a result of Decrees No. 1055 of 10 October 1989, No. 1212 of 8 November 1989, No. 1589 of 27 December 1989 and No. 2411 of 12 November 1991.
(c) AREAS DE YPF SOCIEDAD ANONIMA, understood by such those covered by concessions of exploitation granted as a result of Article 4 of Law No. 24.145.Art. 2o-The issuance of the technical regulation provided for in the previous article shall determine the conditions of operation of the remaining areas located between the lots that integrate the area and the limit of the concession, determined by the Decrees of Adjudication, in accordance with the basic budgets established in this Decree. Art. 3o-The basic budgets under which the SECRETARIAT OF ENERGIA under the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICS shall issue the above-mentioned regulations:
(a) Scope of Application: The regime will apply to the concessions of exploitation granted by the NATIONAL EXECUTIVE PODER, in respect of the so-called SECUNDARY AREAS, RECONVERTIDATED AREAS and AREAS DE YPF SOCIEDAD ANONIMA.
(b) Areas to be considered: The areas granted in concession shall be divided for the purposes of this Decree, as follows:
I) Concession Area, II) Exploitation Lots, and III) Remanent Area.
(c) Canon: According to the preceding subparagraph, different canons should be considered according to the surface concerned, allowing the application of progressive canons for the purpose of inducing the advance restitution of surfaces.
(d) Pre-surface restitution: The Remanent Surface shall be associated with a regime of successive deadlines that may not be superior in a VEINTICINCO BY CIENTO (25%) to the periods of exploration provided for in Article 23 of Law No. 17.319, and the applicable canon shall be increased in accordance with the periods established. At the end of each of the periods referred to, the concessionaires may exercise the option of maintaining such surfaces or carrying out partial restitutions that in no case will be less than VEINTICINCO per SCIENT (25%) of the remaining surface of each period.
(e) Compensation by working units: Regardless of the obligation to develop and explore the area inherent in any exploitation concession, an option regime may be established for concessionaires to offset canon obligations with investment commitments in exploration, through the presentation of detailed and guaranteed work programmes to the satisfaction of the Implementation Authority.
(f) Rules of procedure: Special rules of procedure should be established to transparent the process of developing the initiative and its reasonableness.Art. 4o-Contact, post, give to the National Directorate of the Official Register and archívese.-MENEM.-Jorge A. Rodríguez.- Roque B. Fernández.