Law No 17.319. Amendment. Sanctioned: October 29, 2014 Enacted: October 30, 2014
The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:
Amendments to Law 17.319
ARTICLE 1-Substitute Article 23 of Law 17.319 and its Modifiers, by the following text:
Article 23: The time limits for the exploration permits shall be fixed at each invitation to tender by the Application Authority, according to the objective of the exploration, according to the following detail: Basic Term: Exploration with conventional objective: 1st. period up to three (3) years. 2do. period up to three (3) years. Extension period: up to five (5) years. Non-conventional target scan: 1st. period up to four (4) years. 2do. period up to four (4) years. Extension period: up to five (5) years. For explorations on the continental shelf and in the territorial sea each of the periods of the Basic Term of Exploration with a conventional objective may be increased by one (1) year. The extension provided for in this Article is optional for the permissioner who has complied with the investment and the remaining obligations under his office. The partial conversion of the area of the exploration permit into a holding carried out before the expiry of the Basic Term of the permit, as laid down in Article 22, authorizes the addition of the period of the period of the concession after the scan permit, excluding the term of the extension. At any time the permit may waive all or part of the area covered by the exploration permit, without prejudice to the obligations prescribed in Article 20.
ARTICLE 2-Substitute Article 25 of Law 17.319 and its Modifiers, by the following text:
Article 25: Exploration permits shall cover areas whose area does not exceed one hundred (100) units. Those awarded on the continental shelf will not exceed one hundred and fifty (150) units.
ARTICLE 3-Substitute Article 26 of Law 17.319 and its Modifiers, by the following text:
Article 26: At the end of the first period of the Basic Term, the permissioner will decide whether to continue exploring in the area, or whether to fully revert it to the State. The permissioner will be able to maintain the entire area originally granted, provided that it has given good compliance to the emerging obligations of the permit. At the end of the Basic Term, the allowance shall be returned to the total of the area, except if it exercises the right to use the extension period, in which case the refund shall be limited to 50% (50%) of the remaining area before the end of the period. maturity of the second period of the Basic Term.
ARTICLE 4 °-Substitute Article 27 of Law 17.319 and its Modifiers, by the following text:
Article 27: The granting of exploitation confers the exclusive right to exploit the hydrocarbon deposits that exist in the areas covered by the respective concession title during the period fixed in Article 35. The holders of exploration permits and/or hydrocarbon exploitation concessions shall be entitled to apply to the Application Authority for a Concession of Non-Conventional Exploitation of Hydrocarbons in accordance with the terms laid down in this Regulation. Article 22 or Article 27a, as appropriate.
ARTICLE 5-Incorporate as Article 27a of Law 17.319 and its amendments, the following:
Article 27a: The extraction of liquid and/or gaseous hydrocarbons by non-conventional exploitation of hydrocarbons by means of non-conventional stimulation techniques applied in fields located in geological formations of rocks Shale or shale (shale gas or shale oil), compact sandstone (tight sands, tight gas, tight oil), layers of coal (coal bed methane) and/or characterised in general by the presence of low-permeability rocks. The operating concessionaire, within the concession area, may require the subdivision of the existing area into new areas of non-conventional exploitation of hydrocarbons and the granting of a new Concession of Non-Conventional Exploitation of Hydrocarbons. Such a request shall be based on the development of a pilot plan which, in accordance with acceptable technical-economic criteria, aims at the commercial exploitation of the discovered field. The national or provincial implementing authority shall, as appropriate, decide within 60 days and its validity shall be taken into account in the manner set out in Article 35. The holders of a Concession of Non-Conventional Exploitation of Hydrocarbons, which in turn are holders of an adjacent and pre-existing concession of exploitation, will be able to request the unification of both areas as a single concession of Non-conventional operation, provided that the geological continuity of these areas is demonstrated. Such a request shall be based on the development of the pilot plan provided for in the preceding paragraph. The concession corresponding to the timely concession area and not affected to the new Concession of Non-Conventional Exploitation of Hydrocarbons, will remain in force for the periods and in the conditions previously existing, owing the Authority Grant to readjust the respective title to the extension
resulting from the subdivision. It is established that the new Concession of Non-Conventional Exploitation of Hydrocarbons must have as main objective the Non-Conventional Exploitation of Hydrocarbons. However, the holder of the same may develop complementary activities for the conventional exploitation of hydrocarbons within the meaning of Article 30 and concordant with this law.
ARTICLE 6-Incorporate as Article 27b of Law 17.319 and its amendments, the following:
Article 27b: Those projects of Tertiary Production, Extra Pesos and Costa Aoutas, which, due to their productivity, location and other unfavourable technical and economic characteristics, and which are approved by the Application Authority and by The Commission on Strategic Planning and Coordination of the National Plan of Inversiones Investments, may be able to reduce royalties of up to fifty percent (50%) by the Provincial Application Authority or national, as appropriate. Production Projects are considered to be those production projects in which improved oil recovery techniques are applied (Enhanced Oil Recovery -EOR- or Improved Oil Recovery -IOR-). Extra Heavy Oil projects are considered to be those requiring special treatment (crude quality below 16 API grades and with a reservoir temperature above 1000 centipois).
ARTICLE 7-Substitute Article 29 of Law 17.319 and its Modifiers, by the following text:
Article 29: Operating concessions shall be granted, as appropriate, by the national or provincial executive branch to the natural or legal persons exercising the right agreed by Article 17 in compliance with the formalities entered into Article 22. The national or provincial executive branch, as appropriate, may also grant operating concessions on proven areas to those who meet the requirements and observe the procedures specified in Section 5 of this Title. This mode of concession does not in any way imply guaranteeing the existence in such areas of commercially exploitable hydrocarbons. The national or provincial executive branch, as appropriate, shall also grant Non-Conventional Hydrocarbon Exploitation Concessions in accordance with the requirements laid down in Articles 27 and 27a.
ARTICLE 8-Substitute Article 34 of Law 17.319 and its Modifiers, by the following text:
Article 34: The maximum area of a new concession of exploitation that is granted from the current term and that does not come from an exploration permit, will be two hundred and fifty square kilometers (250 km2).
ARTICLE 9-Substitute Article 35 of Law 17.319 and its Modifiers, by the following text:
Article 35: According to the following classification, the operating concessions shall have the following vigences, which shall be counted from the date of the decision granting them, with the additional ones resulting from the Application of Article 23: (a) Conventional exploitation of hydrocarbons: 25 (25) years. b) Concession of Non-Conventional Exploitation of Hydrocarbons: thirty-five (35) years. This deadline
include a Pilot Plan Period of up to five (5) years, to be defined by the concessionaire and approved by the Application Authority at the time of the commencement of the concession. c) Concession of exploitation with the continental shelf and in the territorial sea: thirty (30) years. The holders of the operating concessions (whether or not they have been extended to the date of commencement of the present amendment) and provided that they have complied with their obligations as operating concessionaires, are producing In the areas concerned, they will be able to request extensions for a period of 10 (10) years each, in the areas in question and present an investment plan consistent with the development of the concession. The respective application must be submitted in advance not less than one (1) year at the end of the concession. It is established that those operating concessions which, at the date of the sanction of this law, have previously been extended shall be governed until the time limits for such extensions are exhausted by the existing terms and conditions. Once these extension periods have been exhausted, the holders of the operating concessions may apply for new extensions, and must comply with the extension conditions laid down in this law.
ARTICLE 10. -replace Article 41 of Law 17.319 and its amendments by the following text:
Article 41: The concessions referred to in this Section shall be granted and extended by time equivalent to those granted for operating concessions linked to the transport concessions. Due to these deadlines, the facilities will pass to the domain of the national or provincial state as appropriate without charge or charge.
ARTICLE 11. -replace Article 45 of Law 17.319 and its amendments, by the following text:
Article 45: Without prejudice to the provisions of Article 27a, the permits and concessions covered by this law shall be awarded by means of invitations to tender in which any natural or legal person who meets the requirements may submit tenders. the conditions laid down in Article 5 ° and meet the requirements laid down in this Section. Concessions resulting from the application of Articles 29, first paragraph and 40, second paragraph, shall be awarded in accordance with the procedures laid down in Title II of this Law.
ARTICLE 12. -replace Article 47 of Law 17.319 and its amendments, by the following:
Article 47: Issued the call for tenders in any of the procedures referred to in Article 46, the Application Authority shall draw up the respective specifications, on the basis of the Model Pliego, drawn up among the Authorities of Application the provinces and the Secretariat of Energy of the Nation, which shall enter in an illustrative title and with reference to its origin, the information available concerning the presentation of proposals. The specification shall also contain the conditions and guarantees to be met by the tenders and shall set out the fundamental bases which shall be taken into account in order to assess the appropriateness of the proposals, such as the amount and time-limits for the proposals. investments in works and works that are committed. The call for tender should be disseminated for no less than ten (10) days in the places and by national and international means that are considered suitable to ensure their widest knowledge, seeking as much concurrency as possible. This will necessarily include the Official Gazette. Publications shall be made at least 60 days in advance of the
indicated for the start of receipt of tenders.
ARTICLE 13. -replace Article 48 of Law 17.319 and its amendments, by the following text:
Article 48: The Application Authority shall examine all proposals and may require those offerors who have submitted the most relevant proposals, the improvements it deems necessary to achieve satisfactory conditions. The contract shall be awarded to the offeror who has submitted the most suitable offer, which, according to the appropriate criteria of the national or provincial executive branch, as appropriate, in particular proposes the largest investment or exploratory activity. It is the attribution of the national or provincial executive branch, as appropriate, to reject all the offers submitted or to award the sole bidder in the tender.
ARTICLE 14. -Incorporate Title II of Law 17.319 and its amendments to Section VII "Canon and Royalties", which shall comprise Articles 57, 58, 59, 60, 61, 62, 63, 64 and 65, and replace Articles 57 and 58 of Law 17.319 and its amendments thereto following texts:
Article 57: The holder of an exploration permit shall pay annually and in advance a fee for each square kilometre or fraction, according to the following scale: (a) Basic Term: 1st. Period: two hundred and fifty pesos ($250). 2do. Period: 1,000 pesos ($1,000). b) Extension: During the first year of its term, it will pay in advance the sum of seventeen thousand five hundred pesos ($17,500) per Km2 or fraction, increasing that amount by twenty-five percent (25%) cumulative annual. The amount to be paid for this concept for the second Basic Term Period and the Extension Period may be adjusted by compensating for the investments actually made in the exploration within the area concerned, up to the concurrency of a minimum fee equal to 10% (10%) of the fee corresponding to the period per Km2 to be paid in all cases.
Article 58: The operating concessionaire shall pay annually and in advance a fee for each square kilometre or fraction covered by the area of pesos four thousand five hundred ($4,500).
ARTICLE 15. -Article 58a of Law 17.319 and its amendments, the following:
Article 58a: The Application Authority may lay down for carryovers of operating concessions, the payment of an extension bonus whose maximum amount shall be equal to that resulting from multiplying the proven reserves remaining at the end of the period of validity of the concession by two percent (2%) of the average basin price applicable to the respective hydrocarbons during the two (2) years prior to the granting of the extension. For cases of completion of complementary activities of conventional exploitation of hydrocarbons, from the expiration of the period of validity of the concession in time granted and within the Concession of Non-Conventional Exploitation of Hydrocarbons, the Application Authority may establish the payment of an operating bonus whose maximum amount shall be equal to that resulting from multiplying the remaining proven reserves associated with the conventional exploitation of hydrocarbons at the end of the year. of the period of validity of the concession granted in due time and by the two
(2%) of the average basin price applicable to the respective hydrocarbons during the two (2) years prior to the granting of the Non-Conventional Hydrocarbon Exploitation Concession.
ARTICLE 16. -replace Article 59 of Law 17.319 and its amendments, by the following text:
Article 59: The operating concessionaire shall pay monthly to the Conceding, in respect of the production of liquid hydrocarbons extracted in the mouth of the well, a percentage of 12% (12%). The same percentage of the value of the volumes extracted and effectively used, will pay monthly the production of natural gas, in concept of regalia. For the payment of this royalty the value of the gas shall be fixed in accordance with the procedure indicated for crude oil in Article 61. The payment in kind of this regalia shall only be made when a reasonable stay reception is assured to the concessionaire. In both cases, the national or provincial executive branch, as appropriate as the granting authorities, may reduce the same to five percent (5%) taking into account the productivity, conditions and location of the wells. Also, in the case of an extension, the payment of an additional royalty of up to 3% (3%) in respect of the royalty applicable at the time of the first extension and up to a maximum of 18% (18%) of royalty for the Subsequent extensions. In the case of the operating concessions referred to in the last paragraph of Article 35, the payment of a total royalty shall not exceed 18% (18%). For the performance of the complementary activities of conventional exploitation of hydrocarbons, referred to in Article 27a of this Law, from the expiration of the period of validity of the concession in due time The Application Authority may also set an additional royalty of up to 3% (3%) in respect of the existing royalty up to a maximum of 18% in respect of the Non-Conventional Hydrocarbon Exploitation Concession. (18%) as appropriate in accordance with the mechanism set out in Article 35. The royalty payments provided for in this Article shall be the only mechanism of income for the production of hydrocarbons that the jurisdictions holding the domain of the hydrocarbons will receive in their character as Concedents.
ARTICLE 17. -replace Article 61 of Law 17.319 and its amendments by the following text:
Article 61: The cash payment of the royalty shall be made in accordance with the value of the crude oil in the mouth of the well, which shall be declared monthly by the permit and/or concessionaire, subtracting from the fixed according to the rules set out in point (c) Article 56 (1), the freight of the product to the place which has been taken as the basis for fixing its commercial value. Where the Application Authority considers that the sale price reported by the permit and/or dealer does not reflect the actual market price, it shall raise the objections it considers to be relevant.
ARTICLE 18. -Incorporate as Article 91a of Law 17.319 and its amendments, the following:
Article 91a: The provinces and the national state, each in relation to the exploration and exploitation of the resources of their domain, will not in the future establish new areas reserved for public entities or companies. State participation, irrespective of its legal form. With respect to the areas that have been reserved for the date by the authorities of the Concedents in favor of provincial entities or enterprises with state participation, any other than their legal form, but
(a) the participation of such entities or provincial enterprises during the development stage shall be proportional to the investment in the form of partnership contracts with third parties. which are committed and which are actually carried out by them.
Regime for the Promotion of Investment for the Exploitation of Hydrocarbons
ARTICLE 19. -The National State shall incorporate into the Investment Promotion Regime for the Exploitation of Hydrocarbons, created by decree 929/13, to projects involving the realization of a direct investment in foreign currency not less than Two hundred and fifty million US dollars (U$S 250,000,000) calculated at the time of the presentation of the "Investment Project for the Exploitation of Hydrocarbons" and to be invested during the first three (3) years of the project. The benefits provided for in that decree shall be recognised from the third year after the implementation of the respective projects. The percentage of hydrocarbons in respect of which the benefits provided for in Articles 6 and 7 of that decree shall apply, shall be as follows: (a) Conventional exploitation: 20% (20%). (b) Non-Conventional Exploitation: 20% (20%). c) Offshore exploitation: sixty percent (60%). The offshore exploitation projects in which the drilling of wells is carried out in locations where the distance between the seabed and the surface, measured at the location of the sea, will be included within the preceding paragraph (c). well, on average between high and low tide, exceed 90 meters. Any other offshore operating project which does not meet these requirements shall be marked within the points (a) or (b) as appropriate.
ARTICLE 20. -The conditions for access to the Investment Promotion Regime for the exploitation of hydrocarbons provided for in Article 19 shall be governed by the entry into force of this law, recognizing the Investment Projects for the Exploitation of previously approved Hydrocarbons, investment commitments and promotional benefits committed at the time of their approval.
ARTICLE 21. -In the framework of the Investment Projects for the Exploitation of Hydrocarbons that are approved in the future by the Commission of Planning and Strategic Coordination of the National Plan of Inversiones Investments, referred to in Article 19 of this law, the following contributions are made to the producing provinces in which the investment project is developed: a) Two comma five percent (2.5%) of the initial investment amount of the project, aimed at Social Responsibility Businesswoman, to be contributed by companies. b) An amount to be determined by the Planning and Strategic Coordination Commission of the National Plan for the Investment of Hydrocarbons, according to the magnitude and scope of the investment project to finance infrastructure projects in the producing provinces, to be contributed by the national state.
ARTICLE 22. -capital goods and inputs which are essential for the execution of the
Investment plans of the companies registered in the National Registry of Investments, whether imported by such companies or by those who prove to be services of them, will be taxed the import duties indicated in Decree 927/13 or rules to replace it. Such a list may be extended to other strategic products.
Supplementary and Transitional Provisions
ARTICLE 23. -The national state and the provincial states, in accordance with the provisions of Article 41 of the National Constitution, will propose to the establishment of a uniform environmental legislation, which will have as a priority objective to implement the Best practices for environmental management to the tasks of exploration, exploitation and/or transport of hydrocarbons in order to achieve the development of the activity with adequate care of the environment.
ARTICLE 24. -The national state and the provincial states shall encourage the adoption of a uniform tax treatment that promotes the activities of the water-making activities provided for in this law to be carried out in their respective territories.
ARTICLE 25. -The National Executive Branch through the Strategic Planning and Coordination Commission of the National Plan of Investment Hydrocarbons will administer the Program of Stimulus to the Natural Gas Surplus Injection created by the resolution 1/13 and the "Natural Gas Injection Stimulus Program for Companies with Reduced Injection" created by resolution 60/13, in both cases of the Planning and Strategic Coordination Commission of the National Investment Plan Oil and gas, and the plans that with the purpose of stimulating the surplus production of natural gas establish in the future.
ARTICLE 26. -National and provincial enforcement authorities as appropriate, the Nation's Energy Secretariat and the Strategic Planning and Coordination Commission for the National Plan for the National Investment in Energy, will promote the the unification of procedures and records to comply with their respective competences and the exchange of information for that purpose and with the fulfilment of the objectives of self-supply provided for in Law 26,741.
ARTICLE 27. -Article 62 of Law 17.319 and its amendments are repealed.
ARTICLE 28. -The national or provincial executive branch, as appropriate, as the Conceding Authority, may reduce up to twenty-five percent (25%) the amount corresponding to royalties applicable to the production of hydrocarbons and during the ten (10) years following the completion of the pilot project, in favour of companies applying for a Concession of Non-Conventional Exploitation of Hydrocarbons, in the terms of Article 27a of Law 17.319 and its amendments, within thirty-six (36) months from the date of validity of this law.
ARTICLE 29. -The authorities of application of the provinces and the Secretariat of Energy of the Nation will make within one hundred and eighty (180) days to count from the beginning of validity of this law the Model Pliego established in article 47 of the Law 17.319 and its amendments, which may be revised and updated periodically according to the opportunity and appropriateness of the tenders. "
Specifications shall cover the general terms and conditions applicable to invitations to tender, including, inter alia, the guarantees to which tenders must be adjusted, the extent of the investments and the revenue which may be correspond to the respective Conceding Authorities. The Model Specifications shall also contain the special conditions applicable to awards for the purpose of the conventional exploration and/or exploitation of hydrocarbons, non-conventional exploitation, offshore oil, extra heavy oils, exploration in border areas and other situations which may be covered by those implementing authorities.
ARTICLE 30. -Repeal article 2 ° of Law 25,943, leaving to that effect reversed and transferred all permits of exploration and concessions of exploitation of hydrocarbons from the national offshore areas to the Secretariat of Energy of the Nation, in respect of which there are no contracts of association signed with the Argentine Energy Company Limited in the framework of Law 25,943. Except for such reversal to existing exploration permits or operating concessions to the entry into force of this law that have been granted prior to law 25,943. Authorize the national executive branch to negotiate by mutual agreement, within six (6) months, with the holders of association contracts that have been signed with the Argentine Energy Company Limited in the framework of Law 25,943, the conversion of such associative contracts to exploration permits or operating concessions of law 17.319 and its modifications, as appropriate.
ARTICLE 31. -When, at the date of entry into force of this law, some province had already initiated the extension process referred to in Article 35 of Law 17.319 and its modifications, in respect of concessions granted by the national State, and provided that This process would have established certain conditions precedent according to the will of the province and the respective concessionaire and the laws in force, said province will have a period of ninety (90) days to finish the process of extension by the dictation of the necessary administrative acts in charge of the Executive Branch provincial. The extensions thus determined will subsequently have the treatment provided for in Article 35 of Law 17.319 and its amendments.
ARTICLE 32. -Contact the national executive branch.
GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE TWENTY-NINE DAYS OF THE MONTH OF OCTOBER OF THE YEAR TWO THOUSAND FOURTEEN.
-REGISTERED UNDER NO 27.007-
BELOVED BOUDOU. -JULIAN A. DOMINGUEZ. -Lucas Chedrese. -Juan H. Estrada.
Date of publication: 31/10/2014