Declare Is Of Interest Public National The Achievement Of The Self-Sufficiency Of Hydrocarbons. Create The Federal Council Of Hydrocarbons. Declared Of Public Utility And Subject To Expropriation 51% Of The Heritage Of Ypf Sa And Repsol Ypf Gas Sa

Original Language Title: Declárase de Interés Público Nacional el logro del autoabastecimiento de hidrocarburos. Créase el Consejo Federal de Hidrocarburos. Declárase de Utilidad Pública y sujeto a expropiación el 51% del patrimonio de YPF S.A. y Repsol YPF Gas S.A.

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DEPOSITS petroleum tax deposits petroleum tax law 26,741 declared national public interest achievement of self-sufficiency of hydrocarbons. Create is the Council Federal of hydrocarbons. Declared of public utility and subject to expropriation 51% of the heritage of YPF SA and Repsol YPF Gas SA Passed: May 3 2012 promulgated: May 4, 2012 the Senate and Chamber of deputies of the Argentina nation gathered in Congress, etc. they attest to the force of law: title I Chapter one of the sovereignty hydrocarbon of the Republic Argentina article 1 ° - declared of public interest, national and as a priority objective of the Argentina Republic the achievement of self-sufficiency of hydrocarbons, as well as the exploration, exploitation, industrialization, transport and marketing of hydrocarbons, in order to ensure economic development with social equity, job creation the increase of the competitiveness of the various economic sectors and the equitable and sustainable growth of provinces and regions.

Article 2 ° - the National Executive, in his capacity as authority responsible for setting the policy, contents 14(bis) will provide measures conducive to the fulfilment of the purposes of the present with the participation of provincial governments and public and private, national and international capital.

(Article 3 °-establishment as principles of the political hydrocarbon of the Republic Argentina them following: to) the promotion of the employment of them hydrocarbons and their derivatives as factor of development e increase of the competitiveness of them different sectors economic and of them provinces and regions;
(b) the conversion of the gas resources in proven reserves and their exploitation and the restitution of reserves;
(c) the integration of the capital public and private, national and international, in alliances strategic targeted to the exploration and exploitation of hydrocarbons conventional and not conventional;
(d) the maximization of the investment and of them resources employees for the achievement of the self-sufficiency of hydrocarbons in the short, medium and long term;
(e) the incorporation of new technologies and management arrangements that contribute to the improvement of the activities of exploration and exploitation of hydrocarbons and the promotion of technological development in the Republic of Argentina for this purpose;
(f) the promotion of the industrialization and the marketing of the hydrocarbons with high value added;
(g) the protection of the interests of consumers related to price, quality and availability of the derivatives of hydrocarbons;
(h) the obtaining of balances of exportable hydrocarbons for the improvement of the balance of payments, ensuring the rational exploitation of resources and the sustainability of its exploitation for the use of future generations.

Title II chapter one of Council Federal of hydrocarbon article 4 - create the hydrocarbon Federal Council, which will be integrated with the participation of: to) the Ministry of economy and finance, the Ministry of Federal Planning, public investment and services, the Ministry of labour, employment and Social Security and the Ministry of industry, through their respective owners;
(b) the provinces and the autonomous city of Buenos Aires, through representatives designated by each of them.

Article 5° - are functions of the Federal Council of hydrocarbons as follows: to) promote the coordinated action of the national State and the provincial States, in order to ensure the fulfilment of the objectives of the present;
(b) issue on any other matter related to the fulfilment of the objectives of this law and the fixing of the policy hydrocarbon of the Argentina Republic, the Executive branch submitted to your account.

Article 6 °-the Council will be held with the most absolute of its members and will be chaired and represented by the representative of the State national that the power Executive national designated to the effect.
It shall adopt its own rules of operation.

Title III of the recovery of Control of YPF chapter I of the expropriation article 7 - for the purposes of ensuring compliance with the objectives of the present, declared of public utility and subject to expropriation the fifty one percent (51%) of the heritage of YPF anonymous society represented by equal percentage of class D of such company shares belonging to Repsol YPF S.A., its parent, or controlled, directly or indirectly. In addition, declared of public utility and subject to expropriation the fifty-one percent (51%) of the assets of Repsol YPF GAS S.A. represented by sixty per cent (60%) of the class A of the company shares, belonging to Repsol butane S.A., its parent or controlled.

Article 8 ° - the shares subject to expropriation of companies YPF Sociedad Anonima and Repsol YPF GAS S.A., in compliance with the preceding article, shall be distributed in the following way: fifty-one percent (51%) belong to the State and forty-nine percent (49%) remaining will be distributed among the members of the Federal Organization of States producers of hydrocarbon provinces.
Regulation must contemplate the conditions of the assignment, ensuring that the distribution of shares among the provinces that accept your transfer is conducted in an equitable manner, taking also into account for this purpose the levels of production of hydrocarbons and of each one of them proved reserves.

Article 9 ° - for the purpose of ensuring the fulfilment of the objectives of the present, Executive national, itself or through the body designated, shall exercise rights politicians over all of the shares subject to expropriation until perfect transfer of political and economic rights pertaining to them referred to in the preceding article.
The transfer of political and economic rights of the shares subject to expropriation, carrying the State in favour of the provincial States of the Federal Organization of States producers of hydrocarbons, consider the exercise of the stock rights corresponding to them as unified for the minimum period of fifty (50) years through a Pact of syndication of shares.
The appointment of Directors of joint-stock company YPF corresponding nominating on behalf of subject to expropriation actions shall be made in proportion to the holdings of the national State, the provincial States and one on behalf of the workers of the company.

ARTICLE 10. -For the purposes of the implementation of the present and the registration of ownership of rights pertaining to the shares subject to expropriation, must be point that the expropriation of such actions is in cases of public usefulness and that is prohibited the future transfer of them without the authorization of the H. Congress of the nation voted for the two-thirds of its members.

ARTICLE 11. -The processes of expropriation shall be governed by the provisions of the law 21.499 and it will act as a expropiante the national executive power.

ARTICLE 12. -The price of assets subject to expropriation will be determined according the provisions of article 10 and matching of the 21.499 law. The Court of the appraisals of the nation will be pricing.

Chapter II article 13 operational continuity. -In order ensure continuity in activities of exploration, production, processing and refining of hydrocarbons to charge of joint-stock company YPF and Repsol YPF GAS S.A., as well as its transportation, marketing and distribution and the increase in the flow of investment, adequate supply of fuel necessary for the operation of the national economy within the framework of the provisions of the present , the national executive branch, through persons or bodies designated by since the entry into force of this law shall exercise all rights which expropriate shares confer under the terms of articles 57 and 59 of this standard.
The National Commission of values on the day of the promulgation of this law will convene a shareholders Assembly, for the purpose of trying to, among other matters deemed necessary and relevant for the purposes of the present, removal of all of titular and Deputy Directors and Trustees titular and Deputy and the appointment of their replacements for the term that corresponds.

ARTICLE 14. -Authorize the Executive Branch and the Comptroller of YPF Sociedad Anonima and Repsol YPF GAS S.A. appointed by it, to take all actions and precautions that may be necessary, until they take control of YPF Sociedad Anonima and Repsol YPF GAS S.A., for the purposes of ensuring the operation of enterprises, the preservation of its assets and supply of hydrocarbons.

Chapter III of the continuity legal and the management of YPF S.A.

ARTICLE 15. -For the development of its activity, YPF Sociedad Anónima and Repsol YPF GAS S.A., will continue to operate as corporations open, under the terms of chapter II, section V, of law 19.550 and standards consistent, not being applicable legislation or administrative regulations that regulate the Administration, management and control of the companies or entities in which the State

national or provincial States have participation.

ARTICLE 16. (- The management of stock rights pertaining to the shares subject to expropriation, by the national Government and the provinces, will be carried out according to the following principles: to) YPF Sociedad Anonima strategic contribution to the fulfilment of the objectives of the present;
(b) the administration of YPF Sociedad Anonima in accordance with the best practices of the industry and corporate governance, while preserving the interests of its shareholders and generating value for them;
(c) the management of YPF S.A. through a professionalized management.

ARTICLE 17. -In order comply with its purpose and the purposes of the present, YPF Sociedad Anonima attend to internal and external sources of funding and the conclusion of strategic partnerships, joint ventures, temporary marriages of companies and all kinds of cooperation and association agreements businesswoman with other public, private or mixed, national or foreign companies. article 18. -This law is of public order and shall enter into force after its publication in the Official Gazette.

ARTICLE 19. -Communicate to the Executive branch.


-REGISTERED UNDER NO. 26,741 - AMADO BOUDOU. -JULIAN A. DOMINGUEZ. -John H. Estrada. -Gervasio Bozzano.

Date of publication: 07/05/2012