Act 141 1994

Original Language Title: LEY 141 de 1994

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141 OF 1994

(June 28)

Official Journal No. 41,414, July 30, 1994

For which the National Royalty Fund is created, the National Royalty Commission, which regulates the right of the State to receive royalties for the exploitation of non-renewable natural resources, establishes the rules for its liquidation and distribution and other provisions are dictated.

THE CONGRESS OF COLOMBIA,

DECRETA:

CHAPTER I.

NATIONAL ROYALTY FUND

ARTICLE 1o. CONSTITUTION OF THE NATIONAL ROYALTY FUND. Create the National Royalty Fund with revenues from royalties not assigned to the departments and municipalities producers and to the port municipalities in accordance with the provisions of this Law.

The Fund will be a separate management system of accounts, without legal status. Its resources will be used in accordance with article 361 of the National Constitution, the promotion of mining, the preservation of the environment and the financing of regional investment projects defined as priorities in the development plans of the respective territorial entities.

PARAGRAFO 1o. 37 of Law 756 of 2002. The new text is as follows: > During the fifteen (15) years following the enactment of this law, the Fund will allocate 15% (15%) of its resources to finance regional energy investment projects, which are presented by the territorial entities and which are defined as priorities in the respective development plans.

Of these, twenty percent (20%) will be allocated to the financing of regional investment projects in distribution infrastructure for the provision of the public fuel gas service in strata 1 and 2.

When it comes to electrical projects, resources can be applied to the generation, transport, transformation, expansion and remodeling of networks, maintenance, control and reduction of energy losses, distributed as follows:

1. Forty per cent (40 per cent) for interconnected areas. Eight percent (8%) of these resources to finance the execution of regional hydroelectric projects in the Department of Santander, approved through their electrifying, sie mpre and when they are included in the national expansion plan and defined as priorities in the regional development plans. The surplus of these resources will be allocated to rural electrification, with priority for those areas with less coverage in the service, until similar regional coverage is obtained throughout the country, and

2. Forty per cent (40 per cent) for non-interconnected areas.

The regulations will have the criteria for the selection of projects. In any case, the implementation of these projects will require the approval of the Ministry of Mines and Energy, based on the development plans of the companies in the sector.

PARAGRAFO 2o. 2 of Law 756 of 2002. The new text is as follows: > The total resources of the National Royalty Fund, once the allocations referred to in Article 1are discounted, article 5or. paragraph, article 8or. 8, this percentage will be raised to one percent (1%) of the actual collections made by the National Royalty Fund, taking into account for its calculation the income of the immediately preceding semester and the estimated revenue projections for the next term, and of article 30 of this law, will be used for the promotion of mining, the preservation of the environment and the financing of regional investment projects, applying the following percentages as a minimum: 15% for the promotion of mining, 30% for the preservation of the environment, 54% for the financing of regional investment projects defined as priorities in the development plans of the respective territorial entities. The third part of the resources allocated to the preservation of the environment, will be used exclusively for the implementation of basic sanitation and sewage sanitation projects, primarily in the areas of the country where the provision of such services is below the national average until they reach this average, in which case the resources will be used for the treatment and reuse of the wastewater.

PARAGRAFO 3o. The resources for the financing or co-financing of regional investment projects shall be distributed equitably between the regions integrated by the regional Corpes, or by the entities that replace it, taking into account the population density, the unmet basic needs of the population and other indicators of poverty, in accordance with the criteria laid down in this Law and in the regulations issued for the effect by the National Commission of Royalties *.

When the National Royalty Fund receives resources for royalties originating from holdings in indigenous territories that do not belong to any municipality, the sum received shall be separated from the portion that has been allocated to the municipality of having existed, and shall be used for the financing of projects to promote mining, environmental protection, and for regional projects defined as priorities in the development plans of the respective indigenous department or territory, and which directly benefit the communities that inhabit the departmental corregimiento. departmental inspection or the indigenous territory where the exploitation originating the royalties is advanced.

PARAGRAFO 4o. 1 of Law 858 of 2003. The new text is as follows: > One hundred percent (100%) of the resources for the promotion of mining should be applied in the terms of Article 62 of Law 141 of 1994. Of these, thirty percent (30%) will be executed by the Instituto de Investigaciones e Información Geocientíficas, Minero-Ambiental y Nuclear, Ingeominas, mainly to the lifting of the geological-basic cartography of the entire national territory in scale 1:100,000 (scale one in a hundred thousand). Seventy percent (70%) of the National Mining Company, Minercol Ltda., or who does its own times, which will distribute it according to the priorities of the National Government and the development needs of the three (3) mining subsectors, namely: Metals and precious stones, minerals and industrial materials and energy minerals.

Of the annual resources administered by the National Mining Company, or who does its times, forty percent (40%) will be used for the execution of the special and community mining projects and those referred to in Article 62 of Law 141 of 1994. Territorial entities may be implementing projects for the promotion of mining, as long as they are approved by the mining authority, as follows: If they are developed within the jurisdiction of a municipality, they will be executed by the municipality; if it covers the territory of more than one municipality, its execution will be carried out by the respective department.

Territorial entities will be able to advance projects and program the promotion of mining directly, through agreements with other public bodies or through private contractors.

During the next five (5) years, counted from the sanction of this law, up to zero point three percent (0.3%) of the allocation of the resources of the National Royalty Fund, aimed at promoting and promoting small and medium coal mining, will co-finance projects for the rectification, improvement and adaptation of the road infrastructure in the area of coal influence of the departments of Boyaca, Cundinamarca, Antioquia and Norte de Santander.

PARAGRAFO 5o. 7 of Law 756 of 2002. The new text is as follows: > Two thirds (2/ 3) of the resources allocated to environmental preservation will have the following destination:

1. Not less than twenty percent (20%) will be channelled towards the financing of environmental sanitation in the Amazon, Choco, San Andrés Archipelago, Providencia and Santa Catalina, the Cienaga Grande de Santa Marta, the Sauso Lagoon in Valle del Cauca, the Guajaro reservoir in the Atlantic, the Tayrona National Park, the Tota Lagoon and the Sapaya Cienaga, and the environmental sanitation and sustainable development of indigenous guard lands located in areas of special environmental significance.

2. Not less than twelve per cent (12 per cent) for the recovery and conservation of river basins across the country. The sixth part of this 12% will be applied for the financing of research projects, management and development of dry areas and the fight against desertification and drought affecting territorial entities and/or Regional Autonomous Corporations.

3. Not less than twenty-one percent (21 percent) to finance programs and projects for the decontamination of the Bogota River.

4. Not less than three percent (3%) for the decontamination of the Cauca River. These resources will be used exclusively to contribute to the payment of the debt service of the project PTAR Canaveralejo until it is covered. In its absence, these resources will be used to finance the complementary works that will allow to treat one hundred percent (100%) of the wastewater in the city of Santiago de Cali.

5. Not less than two points five percent (2.5%) for decontamination, preservation and for the reconstruction and environmental protection of the area of La Mojana.

6. Not less than seven percent (7 percent) for the preservation and environmental protection of renewable natural resources in the Colombian Massif. Of these, two percent (2%) will be assigned to environmental projects that advance the Regional Autonomous Corporations in the departments of Cauca, Huila, Narino, Tolima, Caqueta, Putumayo and Valle, and the surplus, that is, five percent (5%), for municipalities located in the Colombian Massif in the departments of Cauca, Huila and Narino, under the coordination of environmental policy for the Colombian Massif. The projects will be implemented by the municipalities.

7. Not less than one point five percent (1.5%) for the municipality of San Fernando and zero point five percent (0.5%) for the municipality of Santa Rosa del Sur, for the financing of environmental recovery projects department of Bolivar.

8. Zero point five percent (0.5%) for the department of Sucre for the conservation and decontamination of San Benito Abad, Caimito and San Marcos.

9. Zero point five percent (0.5%) for the protection, preservation, reforestation and decontamination of the rivers Cusiana, Charte, Upia, Juneña, Cravo Sur, Tocaria, Pauto, Ariporo, Tua, Casanare, and for the basic sanitation of the urban centers of influence.

10. The surplus, up to a hundred percent (100%), will be allocated to the financing of environmental projects that advance the Regional Autonomous Corporations in the territorial entities, and will be distributed as follows:

(a) Not less than forty-five percent (45%) of these resources, for projects submitted by the municipalities of the jurisdiction of the fifteen (15) Regional Autonomous Corporations of lower tax revenue in the previous budget;

(b) Not less than 25% (25%), for projects submitted by the municipalities of Regional Autonomous Corporations with special schemes;

c) The surplus to 100% (100%), for environmental projects in municipalities belonging to the Regional Autonomous Corporations other than the previous ones.

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ARTICLE 2o. AUTHORISED OPERATIONS. The Commission, with the resources of the National Royalty Fund, by means of reimbursable allocations, shall finance or co-finance eligible projects submitted to it by the territorial entities.

When the allocations are to be repaid, the corresponding credit operations will be executed by granting credit lines to discount financial entities.

PARAGRAFO. The territorial entities receiving allocations from the fund will be able to generate the counterpart resources with their own income or by obtaining loans under the ordinary rules that regulate their indebtedness.

When territorial entities with natural resources in operation whose contributions to the National Royalty Fund exceed five percent (5%) of the Fund's own annual income, they will be able to guarantee the counterpart with partial payment of future royalties.

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ARTICLE 3o. ELIGIBILITY OF PROJECTS. 6o. of Law 344 of 1996. The new text is as follows: > For a regional investment project to be eligible, it must be presented by the territorial entities, or indigenous residents, individually, jointly or by association or through the Regional Councils of Economic and Social Planning, Corpes or the entities that do their times, for the concept of the corresponding ministry, which must be issued within the following month, and its presentation to the National Commission of Royalties *, according to the regulations issued by the Government.

These projects should be defined as priorities in the corresponding Territorial Development Plan and be accompanied by the Feasibility Studies or Preinvestment, according to the case that includes the Social, Economic and Environmental Impact.

PARAGRAFO 1o. Once the allocation for the projects submitted for consideration by the Commission has been approved, they shall be entered in the Investment Projects Bank referred to in Law 38 of 1989.

PARAGRAFO 2o. 25 of Law 756 of 2002. The new text is as follows: > For the purposes of this law, it is understood as a regional project those that, when executed, benefit groups of municipalities of different departments or of the same department.

For the case of the road investments, the Archipelago department of San Andrés, Providencia and Santa Catalina are excepted, who will be able to define the type of route to which they will apply their investment.

PARAGRAFO 3o. In exceptional cases, projects considered by the Government to be of national interest with due application from the territorial authorities and approved by the National Royalty Commission * may receive support from the national budget.

PARAGRAFO 4o. 25 of Law 756 of 2002. The new text is as follows: > The National Royalties Commission, in accordance with the provisions of article 10 numeral 2 of Law 141 of 1994, with the aim of controlling and monitoring the correct use of royalties and compensation in the terms of Articles 14 and 15 of the aforementioned law, may arrange for the hiring of financial and administrative interventories with public entities or with private firms or entities, to monitor the use of the participation of royalties and compensation from the respective territorial entities. The value of these contracts may not exceed one per cent (1%) of these resources.

The National Royalty Commission * will ask the collecting entity to discount this concept.

PARAGRAFO 5o. The annual surpluses resulting from the National Fund for Uncommitted Royalties will be used by the National Royalties Commission * to finance regional investment projects.

PARAGRAFO. 4o. of Law 344 of 1996. The text is as follows: > Treating the secondary road network is considered regional impact the secondary roads connecting the Troncal Network and the Tertiary Network which connect municipalities of more than one department.

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ARTICLE 4. INVESTMENT OF RESOURCES AND LINE OF FINANCING. The cash surpluses of the National Royalty Fund may be placed only in debt documents issued by the National Government or the Bank of the Republic, or in foreign financial papers, which have market returns and high liquidity, in accordance with the regulations issued by the National Government.

The departmental assemblies and municipal councils of the producing territorial entities and of the port municipalities, will regulate in the same sense regarding the surplus of liquidity from the royalties and compensations.

With resources from the National Royalty Fund, a funding line will be created to support pre-investment and feasibility studies of projects that are eventually eligible as provided for in Article 3or. of this Law.

The National Board of Royalties * will regulate the operation of the financing line that will be able to operate on a non-refundable basis for local or regional lower development entities, which will have priority, and through a contract of loyalty with Fonade.

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ARTICLE 5o. DISTRIBUTION OF RESOURCES AMONG ELIGIBLE PROJECTS. To distribute the resources among the various eligible projects and to establish the magnitude of the allocations in relation to the total value of each project, the Commission will take into account, among others, the following criteria:

1. Regional balance based on the basic unmet needs of the population.

2. Harmonious development of the country and the different regions that make it up, according to the forecasts contained in the National Development Plan.

3. Distribution of the resources of the National Royalty Fund among the projects presented to finance the promotion of mining, environmental protection and regional investment projects in the country, in accordance with the provisions of Article 1or. of this Law.

4. Environmental, social and economic impact of projects.

5. Degree of participation of the Regional Councils of Economic and Social Planning, Corpes, and Regional Autonomous Corporations, in the study, design and execution of the projects.

6. Effects caused to the respective territorial entity as a consequence of the activities of exploration, transport, handling and shipment of non-renewable natural resources or their derivatives.

7. Financing of the development plans of the respective territorial entity.

8. Population density.

PARAGRAFO. 6 of Law 756 of 2002. The new text is as follows: > The National Royalty Commission * will allocate fifteen points five percent (15.5%) of the Fund's annual collections, for projects submitted by the territorial entities in accordance with this law and for the exclusive purposes prescribed by article 361 of the Political Constitution, distributed as follows:

1. One point five percent (1.5%) for the department of Cordoba until 2010 inclusive, for regional investment projects defined as priorities in the respective development plans of the territorial entity.

2. The one point twenty-five percent (1.25%) to the municipalities of the area of environmental influence of the cement factories, distributed proportionally according to the volume of production of each one of them, destined to the preservation of the environment.

3. One per cent (1%) to the municipalities in the area of environmental influence of steelmakers and steelworks, distributed proportionally according to the volume of production of each of them, with a view to the preservation of the environment.

4. In place of the obligations laid down in Articles 3o, 4. and 5o. Decree 1246 of 1974, the two point seventy-five percent (2.75%) for municipalities where petrochemical refining processes of crude and/or gas are carried out, distributed proportionally according to their volume, destined to the preservation of the environment and to the execution of the development works defined in article 15 of Law 141 of 1994.

5. One point, twenty-five percent (1.25 percent), to the metropolitan area of Barranquilla Municipality, aimed at the residual decontamination of the waters of the Magdalena River in that area.

6. One point twenty-five percent (1.25%) to the municipality of Buenaventura, destined for the decontamination of the environment in that municipality.

7. Zero point five percent (0.5%) destined for the residual decontamination of the waters of the Bay of Tumaco and the defense of the ecosystem that begins in its basin extends to the Paramo of the Popes.

8. Zero percentage point 25 percent (0.125 percent) to the municipality of Caucasia, destined for the decontamination of the rivers where the gold is exploited.

9. Zero percentage point 25 percent (0.125%) for the municipality of Ayapel, aimed at the preservation and decontamination of the morass.

10. Zero percentage point 25 percent (0.125%) distributed as follows: For the municipality of Pasto (Narino), thirty percent (30%) and for the municipality of Aquitaine (Boyaca), seventy percent (70%), destined for the conservation, preservation and decontamination of the waters of the Laguna de Cocha and Lake Tota.

11. Zero point twenty-five percent (0.25%) with destination, in equal parts, for the municipalities comprised between the jurisdictions of the Natural Parks, the Nevados del Ruiz, Santa Isabel, Quindio, Tolima and Central; for the preservation, conservation and decontamination of the environment.

12. Zero percentage point 25 percent (0.125%) for the municipality of Lorica, destined for the preservation and decontamination of the Cienaga Grande.

13. Zero point 25 percent (0.125 percent) for municipalities between the jurisdictions of the Fuquene Lagoon for the preservation, conservation and decontamination of the lagoon.

14. Zero point twenty-five percent (0.25%) for the municipality of Puerto Boyaca for the preservation of the environment.

15. One percent (1%) distributed as follows: zero point five percent (0.5%) destined for the department of Choco to recover the areas affected by the mining of the barequeo and for the promotion of small mining, and zero point five percent (0.5%) destined for the departments of Vaupes and Guainia for the same purposes.

16. Zero point twenty-five percent (0.25%) for the departments of Antioquia, Narino and Risaralda for the promotion of gold mining projects in the gold-producing municipalities.

17. The zero point eight hundred and seventy-five percent (0.875%) up to the year 2010 inclusive, for the department of Sucre, destined for the decontamination and channeling of the creeks and canoes.

18. Zero point fifty percent (0.50%) to the municipalities of Chimichagua, Chiriguana, Curumani, Tamalameque, Cesar department, and El Banco, Magdalena department, by parts proportional to their territorial participation in the cenagous system, for the conservation, preservation and decontamination of the Cienaga del Zapatosa.

19. Zero point fifty percent (0.50%) for the municipality of Monteria until 2010 inclusive, destined for projects: investment priorities, preferably basic sanitation.

20. Zero point fifty percent (0.50%), for the municipality of Neiva, Huila, destined for the recovery and preservation of the river basin Las Ceibas.

21. Zero point five percent (0.5%) for projects to improve the environment and infrastructure for small and medium-sized coal and gold mining areas in the department of Antioquia.

22. Zero point five percent (0.5 percent) for the recovery of the Guaitiquia river dam in the city of Villavicencio, resources that will have to be executed by the department's governor.

The area of environmental influence will be that defined by the Environment Ministry.

The provisions of this article do not in any way exempt the polluters from repairing the damage caused to the environment or the performance of their environmental obligations.

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ARTICLE 6o. CONDITIONALITY OF DISBURSEMENTS. The disbursements of resources from the Fund shall be subject to compliance with the financial and technical conditions laid down in the approval of the respective project.

CHAPTER II.

NATIONAL ROYALTY COMMISSION

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ARTICLE 7o. NATIONAL ROYALTY COMMISSION. 149 of 2004. View Notes of Vigency > Create the National Royalty Commission, as a special administrative unit, without legal status, attached to the Ministry of Mines and Energy.

The Commission shall, within the terms and parameters set out in this Law, control and monitor the correct use of the resources resulting from royalties and compensations caused by the exploitation of non-renewable natural resources of State ownership and the administration of the resources of the National Royalty Fund.

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ARTICLE 8o. FUNCTIONS OF THE NATIONAL ROYALTY COMMISSION. 149 of 2004. View Notes of Vigency > It will be the Commission's functions as follows:

1. To monitor, by itself or to commission other public or private entities, that the use of the shares and the allocations of resources, from the National Royalty Fund, to which the territorial entities are entitled, is in accordance with the requirements of the National Constitution and this Law.

2. In the cases provided for in the number 4. Article 10 of this Law, ask the respective collecting entity (administrative and planning regions-or regions as a territorial entity-producers ' departments and municipalities and port municipalities to retain the rotation of the resources required for the execution of such projects.

3. In the cases provided for in the number 3o. Article 10 of this Law, order the National Royalty Fund to withhold all or part of the money required for the execution of such projects.

4. Approve the Technical Committee's previous concept of the item number 12 in article 8or. projects submitted by territorial entities receiving allocations from the National Royalty Fund, with the obligation to ensure an equitable allocation of resources in accordance with the parameters set out in the second paragraph of Article 1or. of this Law.

5. Establish project execution control systems.

6. To designate for the cases of regional investment projects, to the executor of the project in agreement with the territorial entities.

7. Distribute the holdings in royalties and compensation that correspond to the port municipalities, maritime and river, used in an ordinary way, in the loading and unloading of non-renewable natural resources or products derived from non-renewable natural resources; and those who are under their influence, according to the rules set out in the paragraph of article 26 and in Articles 29 and 55 of this Law.

8. Approve The National Royalty Fund annual budget project. Operating expenditure shall not exceed zero point 5 per cent (0.5%) per year of the Fund's own revenue.

9. To authorise the temporary investment of the liquidity surpluses of the National Royalty Fund.

10. Appoint and remove Commission staff.

11. Review, by itself, or commission other public or private entities, when determined, the settlement of holdings by the collecting entities of royalties and other compensation, and take appropriate measures.

12. The creation of a technical committee, made up of five experts of recognized experience in the evaluation of projects, appointed by the President of the Republic for five (5) years, will have exclusive dedication and will bear the remuneration to be set by the Government. In these appointments the President of the Republic will give participation to the different regions of the country.

The technical committee will aim to ensure through the technical analysis and study the quality of the investment projects that seek to finance itself with resources from the National Royalty Fund. In all cases, the Committee shall give a preliminary opinion on the technical and financial feasibility of the projects under consideration.

The technical committee will generally point out the parameters for the social, economic, and environmental assessment of the projects funded and co-financed with resources from the National Royalty Fund.

The first appointment of experts will be done as follows: Two (2) experts for a period of three (3) years and three (3) for a period of five (5) years. Experts may be re-elected.

The technical committee will issue its own regulations.

13. To appoint an oil controller who will be responsible for verifying compliance with this Law, especially regarding the liquidation, payment and destination of the resources from royalties and compensation; his term will be four (4) years and will pay the remuneration to be assigned to him by the commission. The financial controller may be re-elected.

14. Dictate your own regulations.

15. The other necessary for the implementation of the objectives of the Commission.

PARAGRAFO. According to Law 80 of 1993, I authorized the Commission for the conclusion of the contracts of Fiducia, a fiduciary order or other similar nature, when it considers it necessary for the efficient use of the financial resources of the National Royalty Fund.

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ARTICLE 9o. INTEGRATION OF THE NATIONAL ROYALTY COMMISSION. 149 of 2004. View Notes of Vigency > The Commission will be integrated as follows:

1. The Minister of Mines and Energy, who will preside over it, or in his absence the Deputy Minister.

2. The Chief of the National Planning Department, or in his absence, the Subchief.

3. The representative at national level of the environmental and natural resources governing body, or its delegate.

4. 7o. of Law 344 of 1996. The new text is as follows: > The Minister of Transport, who will be able to delegate his participation to the Deputy Minister.

5. Department Governors of each Regional Economic and Social Planning Council, Corpes, three (3) of them, coming from non-producer departments, and two (2) of them from producer departments, elected by the Governors that make up each Corpes. They will act as alternate mayors, three (3) of them coming from non-producing departments, and two (2) of them from producer departments, elected by the municipalities of the region, who will prevent the regions that make up the respective Corpes from which the governors are part.

6. A mayor of the port municipalities as a principal member and one (1) as an alternate, elected by the National Federation of Municipalities.

7. The Mayor of the Capital District of Santafe of Bogota as principal and one (1) Mayor as alternate, elected the latter by the National Federation of Municipalities.

The alternate mayors will be able to attend all the meetings of the committee with a voice and will only have a vote in the absence of the corresponding Governor or Mayor.

PARAGRAFO 1o. Among the elected, principal or alternate members, to integrate the National Royalty Commission, there may not be, in any case, more than one (1) originating in the same department.

PARAGRAFO 2o. 4 of Law 756 of 2002. The new text is as follows: > It is defined as the Productor Department, whose income by concept of royalties and compensation, including those of its producer municipalities, is equal to or greater than three percent (3%) of the total royalties and compensations generated by the country. No account will be taken of the National Royalty Fund's own resources allocations, nor those received by the departments as a product of the reallocations set out in Article 54 of Law 141 of 1994.

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ARTICLE 10. MECHANISMS TO ENSURE THE CORRECT USE OF THE SHARES IN ROYALTIES AND COMPENSATION. 149 of 2004. View Notes of Vigency > In the development of the inspection and control powers on the correct use of royalties and compensation the Commission will have the following powers:

1. 5 of Law 756 of 2002. The new text is as follows: > Practice, directly or through delegates, inspection visits to the territorial entities benefiting from royalties and compensations and suspend the disbursement of them when it has been proven that the territorial entity is making use of the same in an inefficient or inadequate way, until the situation is overcome.

2. Arrange financial and administrative intervention for to monitor the use of shareholdings and allocations from the National Royalty Fund.

3. Order that the execution of the projects financed with allocations from the Fund be carried out by other public entities, when the territorial entity would benefit from such allocations, directly or through contracts with third parties, is executing the projects in an irresponsible or negligent manner without complying with the terms and conditions established in the act of approval of the allocations. The Commission will order that the public entity to be entrusted with the execution of the project will hand over the financial resources provided for this purpose.

4. Request that the execution of the funded projects with participation of royalties and compensation be carried out by other public entities, administrative and planning regions, of the regions as a territorial entity, of the departments and municipalities, as the case may be, when the territorial entity would benefit from such participations or compensations, directly or through contracts with third parties, is managing or executing projects in the form irresponsible or negligent or without complying with the terms and conditions set out in the respective contracts. The Commission may, in such cases, refrain from approving new investment projects to the responsible territorial entities until the corrective of the case is taken and request that the entity to be entrusted with the execution of the project be given the financial resources provided for this purpose.

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ARTICLE 11. DECISIONS TAKEN BY THE COMMISSION. 149 of 2004. See Notes of Vigence > Decisions shall be taken by the Commission, by resolutions issued by its President and endorsed by the Secretary, against which only the replacement resource shall proceed in the terms provided for in the Administrative Code. The Executive Secretary shall authorise and subscribe to the acts to be carried out in the course of the Fund's operations.

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ARTICLE 12. PERSONAL OF THE COMMISSION. 149 of 2004. See Notes of Vigency > The Commission shall have the professional, technical and administrative staff necessary for the performance of its duties, in accordance with what the Government determines and taking into account the provisions of the 8th. of article 8or. of this Law.

The Commission will have an executive secretary, of free appointment and removal, who will have the character of a public employee. Their pay scale will be set by the Government.

CHAPTER III.

ROYALTY AND COMPENSATION REGIME GENERATED BY THE EXPLOITATION OF NON-RENEWABLE NATURAL RESOURCES

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ARTICLE 13. GENERALITY OF ROYALTIES. 5 of Law 619 of 2000. View Effective Case-law >

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ARTICLE 14. USE BY THE DEPARTMENTS OF THE UNITS ESTABLISHED IN THIS LAW. 2 of Law 1283 of 2009. The new text is as follows: > The royalty and monetary compensation resources distributed to the producer departments will have the following destination:

(a) 90% (90%), investment in priority projects that are included in the Department's Development Plan or in the development plans of its municipalities, and of these, not less than fifty percent (50%) for the priority projects that are contemplated in the Development Plans of the municipalities of the same department, that do not receive direct royalties, of which more than fifteen percent (15%) cannot be allocated to the same municipality. In any case, priority will be given to projects benefiting two or more municipalities. Of this percentage, the beneficiary entities must allocate at least one percent (1%) of these resources to projects of investment in nutrition and food security for which they will sign Interadministrative Conventions with the Colombian Institute of Family Welfare-ICBF;

(b) Up to 10% (10%) for the technical intervention of the Projects to be implemented with these resources.

By means of resources that do not come from Hydrocarbon Projects, 7.5% will be used for the technical intervention of the Projects that will be implemented with these resources, and 2.5% will pay for the management and administration costs that the national law entities will have in charge of collecting and distributing royalties and compensations.

As long as the departmental entities do not reach minimum coverage in infant mortality indicators, basic health and education coverage, drinking water, and sewage, the corresponding departmental entity must allocate no less than sixty percent (60%) of the total of its royalties for these purposes. The annual budget will clearly separate the resources from royalties to the sectors mentioned here.

The National Government will regulate the minimum coverage.

PARAGRAFO 1o. For the purposes of this article, the transfers that the departments of the participation of royalties and compensations do in favor of the Regional Councils of Economic and Social Planning, COMPANIES, or of the Entity that replaces them, and of the Funds of Regional Investment, FIR will also have as investment.

PARAGRAFO 2o. All transfers of participations to public entities that under previous laws, decrees and conventions have been carried out will continue to apply.

PARAGRAFO 3o. For all intents and purposes, the Comptroller General of the Republic shall exercise the fiscal control over these resources.

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ARTICLE 15. USE BY THE MUNICIPALITIES OF THE UNITS ESTABLISHED IN THIS LAW. 1 of Law 1283 of 2009. The new text is as follows: > The resources of royalties and monetary compensations distributed to the producing municipalities and to the port municipalities, will have the following destination:

a) 90% (90%) investment in municipal and district development projects, contained in the development plan, with priority for those aimed at the construction, maintenance and improvement of the tertiary network in charge of the territorial entities, productive projects, environmental sanitation and for those destined for investments in the health services, basic education, public media, electricity, drinking water, sewerage and other essential basic public services, without prejudice to the article 129 of the Mining Code (Law 685 of 2001). Of this percentage, the beneficiary entities must allocate at least one percent (1%) of these resources to projects of investment in nutrition and food security for which they will sign inter-administrative agreements with the Colombian Institute of Family Welfare-ICBF;

(b) Up to 10% (10%) for the technical intervention of the Projects to be implemented with these resources.

By means of resources that do not come from Hydrocarbon Projects, 7.5% will be used for the technical intervention of the Projects that will be implemented with these resources, and 2.5% will pay for the management and administration costs that have a national order to which the function of collecting and distributing royalties and compensation will be charged.

As long as municipal entities do not reach minimum coverage in the sectors of health, education, drinking water, sewage, and infant mortality, they will allocate at least seventy-five percent (75%) of the total of their units for these purposes. The annual budget shall clearly separate the resources from the royalties for the previous purposes.

The National Government will regulate the minimum coverage.

PARAGRAFO. For all intents and purposes, the Comptroller General of the Republic shall exercise the fiscal control of these resources.

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ARTICLE 16. MONTO OF THE ROYALTIES. 16 of Law 756 of 2002. The new text is as follows: > Set as royalty for the exploitation of non-renewable natural resources of national ownership, on the value of the production on the mouth or edge of mine or well, as appropriate, the percentage that results from applying the following table:

Coal (exploitation greater than 3 million tonnes per year) 10%

Coal (operating less than 3 million tonnes per year) 5%

Nickel 12%

Iron and copper 5%

Gold and silver 4%

Barrage gold in concession contracts 6%

Platinum 5%

Salt 12%

Limestone, sand, clays and gravel 1%

radioactive minerals 10%

Metal Minerals 5%

Non-metallic Minerals 3%

Build Materials 1%

Set as a royalty for the exploitation of national property hydrocarbons on the value of the well-mouthed production, the percentage that results from applying the following scale:

daily production month Percentage
For a production equal to or less than 5 KBPD 8%
For production greater than 5 KBPD and less than or equal to 125 KBPD X%
Where X = 8 + (production KBPD-5 KBPD) (0.10)
For production greater than 125 KBPD and less than or equal to 400 KBPD 20%
For production greater than 400 KBPD and less than or equal to 600 KBPD Y%
Where Y = 20 + (Production KBPD-400 KBPD) (0.025)
For production greater than 600 KBPD 25%

PARAGRAFO 1o. For all purposes, "production KBPD" means the average daily production month of a field, expressed in thousands of barrels per day. For the calculation of royalties applied to the exploitation of gaseous hydrocarbons, the following equivalence shall apply:

One (1) barrel of oil is equivalent to five thousand seven hundred (5,700) cubic feet of gas.

The royalty regime for gas exploitation projects will remain so:

For exploitation in fields located on dry land and offshore up to a depth of less than or equal to one thousand (1,000) feet, eighty percent (80%) of the equivalent royalties for the exploitation of crude will be applied; for exploitation in fields located offshore at a depth of over a thousand (1,000) feet, a royalty of sixty percent (60%) of the royalties equivalent to the exploitation of crude will be applied.

PARAGRAFO 2o. This standard shall apply for new hydrocarbon discoveries in accordance with Article 2or. of Law 97 of 1993, or the rules which supplement, replace or repeal it, which are carried out after the date of enactment of this law.

PARAGRAFO 3o. This provision will also apply to incremental production from the incremental production contracts previously approved by the Ministry of Mines and Energy and the undeveloped discovered fields. Incremental production is understood to be from the contracts signed by Ecopetrol with third parties that have as their object to obtain from the fields already existing, new reserves coming from new investments oriented to the application of technologies, for the improved recovery in the subsoil that increase the factor of recovery of the fields, or for the addition of new reserves. Incremental production will also be understood as the projects advanced by Ecopetrol for the same purposes.

PARAGRAFO 4o. Of the percentage for royalties and compensation agreed in the current contract for the exploitation of the nickel in Cerromatoso, Montelibano municipality, the first four percent (4 percent) of royalties will be applied and the remaining four percent (4 percent) will be compensated. For future contracts or extensions, if any, the percentage of royalties set out in this article will be applied and distributed as follows: Seven percent (7%) on royalty and five percent (5%) remaining, on compensation.

PARAGRAFO 5o. In the contract of association between Carbool and Intercor, the legal royalty will be of a fifteen percent (15%) in charge of Intercor or the acquiring company of its shares, as stipulated by the contract, which will be distributed as established in article 32 of this law. In the event that the company Carbocol is liquidated, privatised or is the subject of a private capitalization process, the entity that acquires the rights of the company must pay ten percent (10%) on the value of the production in the mouth of mine, which will be settled thus: the first five percent (5%) will be applied as royalties and will be distributed in the terms of the article 32 of this law; the remaining five percent (5%) will be applied as compensation that will be distributed like this: fifty percent (50%) for the Corporation Regional Autonomous Region in whose territory the holdings are carried out; 25% (25%) for the administrative region of planning or the region as a territorial entity to which the respective department belongs, and 25% (25%) for the coal-producing municipalities of the same department. The liquidation, collection and distribution of these royalties and compensation corresponds to the Ministry of Mines and Energy or to the entity that this delegate.

While creating the Administrative Region of Planning or the region as a territorial entity, the resources allocated to it will be administered and implemented by the Regional Autonomous Corporation in whose territory the holdings are made.

PARAGRAFO 6o. The tax stipulated in the contracts or licences in force for the exploitation of coal will be replaced by a royalty whose amount will be equal to that of the tax, in charge of the contractor, dealer or operator.

PARAGRAFO 7o. In cases in which the integration of mining small mining titles is carried out before 31 December 2005, the holders of such integration will be obliged to pay during the twenty-five (25) years following the date of the same, thirty percent (30%) of the total percentage of royalties and compensations to which they are obliged by application of this law.

PARAGRAFO 8o. For the purposes of liquidating the royalties for the exploitation of salt mines, the price of the product will be taken, net of freight rates and costs of processing. It will be taken for the price of realization, the sale price of the Concession Salinas or the company that will do its times.

PARAGRAFO 9o. The value of gram gold, silver and platinum in mine mouth to liquidate the royalties, will be eighty percent (80%) of the average international price of the last month, published by the London Metal Exchange in its Pasado Meridiano version.

PARAGRAFO 10. For the exploitation of heavy hydrocarbons of an API gravity equal to or less than fifteen degrees (15o.), the royalties will be seventy-five percent (75%) of the applied regalia for light and semi-ilivian hydrocarbons. This provision will apply to production coming from new discoveries, incremental production contracts or undeveloped discovered fields.

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ARTICLE 17. ROYALTIES CORRESPONDING TO EMERALDS AND OTHER PRECIOUS STONES. 19 of Law 756 of 2002. The new text is as follows: > Regards corresponding to emeralds and other precious stones. The royalties corresponding to the exploitation of emeralds and other precious stones shall be one point five percent (1.5%) of the value of the exploited material placed in the mouth or edge of the mine, shall be settled by the Ministry of Mines and Energy or by the entity designated by it and shall be declared and paid in accordance with the distribution provided for in Article 35 of this Law.

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ARTICLE 18. ROYALTIES APPLICABLE TO OTHER MINERALS. Non-renewable natural resources that are not subject to specific royalties or taxes on the basis of their exploitation, in advance of this Law, will pay them at the rate of three percent (3%) on the gross value of the production on the mouth or the edge of the mine, as appropriate.

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ARTICLE 19. DETERMINATION OF THE BASE PRICES FOR THE SETTLEMENT OF ROYALTIES. 160 of Law 1530 of 2012. View Vigency Notes >

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ARTICLE 20. BASE PRICE FOR THE LIQUIDATION OF ROYALTIES GENERATED BY THE EXPLOITATION OF PETROLEUM. 160 of Law 1530 of 2012. View Vigency Notes >

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ARTICLE 21. REFERENCE VALUE FOR THE SETTLEMENT OF ROYALTIES GENERATED BY THE EXPLOITATION OF HYDROCARBONS. 160 of Law 1530 of 2012. View Notes of Vigency. The current text is as follows: >

...

PARAGRAFO 1o. For the purposes of liquidating the regalia for gas exploitation, no account shall be taken of the reinjection into the fields, or of the gas used for the operation of the field.

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ARTICLE 22. BASE PRICE FOR THE LIQUIDATION OF ROYALTIES GENERATED BY THE EXPLOITATION OF COAL. 160 of Law 1530 of 2012. View Notes of Vigency. The current text is as follows: >

...

PARAGRAFO. The collection of royalties for the exploitation of coal and limestone destined for the consumption of thermoelectric, cement industries and iron industries will be in charge of these, according to the price that the Ministry of Mines and Energy will fix to these minerals, taking into account the average cost of the operation and transportation.

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ARTICLE 23. BASE PRICE FOR THE SETTLEMENT OF ROYALTIES AND MONETARY COMPENSATION GENERATED BY THE EXPLOITATION OF NICKEL. In the new concessions or in the extensions of the current contract, if any, for the fixing of the basic price in the mouth or the edge of mine for the liquidation of the royalties and monetary compensations, the weighted average of the FOB price in Colombian ports will be taken as a basis in the immediately preceding quarter, discounting the seventy-five percent (75%) of the costs of processing in the oven, of the costs of handling, of the transportation and port costs.

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ARTICLE 24. COLLECTION OF ROYALTIES. 160 of Law 1530 of 2012. View Vigency Notes >

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ARTICLE 25. METHOD OF COLLECTING ROYALTIES. 160 of Law 1530 of 2012. View Vigency Notes >

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ARTICLE 26. SPECIFIC TAXES AND ECONOMIC CONSIDERATION. The specific taxes provided for in the mining legislation, for the gold, platinum and coal holdings, will not continue to tax the holdings of non-renewable natural resources of national property, which will be subject only to the royalties established in this Law and to the compensation that the industrial and commercial enterprises of the State or those subjected to this regime agree.

PARAGRAFO. 160 of Law 1530 of 2012. View Vigency Notes >

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ARTICLE 27. PROHIBITION OF TERRITORIAL ENTITIES. Except for the forecasts contained in the existing legal rules, the territorial entities may not impose any charge on the exploitation of non-renewable natural resources.

CHAPTER IV.

HOLDINGS IN ROYALTIES AND COMPENSATION

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ARTICLE 28. THE RIGHT OF THE DEPARTMENTS AND THE MUNICIPALITIES IN WHOSE TERRITORY THE HOLDINGS ARE BROUGHT FORWARD. The departments and municipalities will participate in the royalties and monetary compensations from the exploitation of the non-renewable natural resources made in their respective territories.

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ARTICLE 29. RIGHTS OF THE PORT MUNICIPALITIES. For the purposes of the third indent of Article 360 of the Political Constitution, the beneficiaries of the participation in royalties and monetary compensation from the transportation of the non-renewable natural resources are the municipalities in whose jurisdiction permanent, terrestrial and maritime facilities are located, constructed and operated for the loading and unloading of ordinary and usual vessels, such resources or their derivatives.

For the purposes of the distribution of the participation that for royalties and compensations corresponds to each of the marine harbour municipalities for the shipment of the non-renewable natural resources and their derivatives, for export, will be taken as base the transported volumes and the capacity of storage used, terrestrial and marine, in each one of them.

There will be a redistribution of the royalties corresponding to the marine harbour municipalities , when environmental and environmental impact factors determine that the area of direct influence of a port includes several municipalities or departments. The Commission will review and determine the cases at the request of the municipalities in the area of influence concerned, and for once, within the year following the enactment of this Law, it will redistribute the percentages (%) of participation between the municipalities and departments. In any case, the rights of the municipality or of the municipalities, ports or departments, as the case may be, shall be preserved and the whole of the royalties shall be preserved, as set out in the preceding paragraph, until the redistribution is operated, or after the end of the year referred to in this Article, without any other decision being made by the Commission.

For the purposes of the distribution of the participation that for royalties and compensation corresponds to each of the river municipalities for the shipment of the non-renewable natural resources and their derivatives, the Commission, within the year following the enactment of this Law, will determine its distribution taking into account the following criteria:

1. Volumes transported.

2. Environmental impact.

3. Basic unmet needs.

4. Zone of influence.

PARAGRAFO 1o. 15 of Law 756 of 2002. The new text is as follows: > The royalties and compensations caused by the transport of non-renewable natural resources or their derivatives, by the municipalities seaports in the departments of Cordoba and Sucre will be distributed within the following area of influence like this:

a) For municipalities in the department of Sucre 50%

b) For the municipalities of the Department of Cordoba 50%

Total a) + b) = 100%

All of these resources must be invested by the territorial entities benefited under the terms of Article 15 of Law 141 of 1994.

50% (50%) corresponding to the municipalities of the department of Sucre will be directly rotated as follows:

1. Eight percent (8%) for the maritime port municipality of the department of Sucre where the non-renewable natural resources or their derivatives are transported.

2. Six points five percent (6.5 percent) for the municipality of Santiago de Tolu.

As of the validity of this law and for the first three years, divided into semesters, the percentages to be distributed to the maritime port municipality of the department of Sucre where the non-renewable natural resources or their derivatives are transported, and to the municipality of Santiago de Tolu, will be as follows:

1 Year 2 Year 3
Semester
1
Semester
2
Semester
3
Semester
4
Semester
5
Semester
6
Port Municipality 6.5% 6.5% 7.0% 7.0% 7.5% 8.0%
Santiago de Tolu coastal municipality 8.0% 8.0% 7.5% 7.5% 7.0% 6.5%

The three percent (3%) of the resources corresponding to the municipalities of Sucre will be directly rotated by the collecting entity to the department of Sucre, who will have to allocate them for the financing of programs for the decontamination of the canos and streams located in their territorial area, with special emphasis on the Arroyo Grande de Corozal as well as for the maintenance of its micro-basins.

In the event that the maritime port municipality of the department of Sucre where the non-renewable natural resources are transported or its derivatives disappear from the legal system and the municipality of Santiago de Tolu will recover its status as a port municipality, the corresponding royalties will be distributed as follows:

The fourteen point five percent (14.5%) for the maritime port municipality of the department of Sucre where natural resources or their derivatives are transported.

Of this fourteen point five percent (14.5%), the third part will have to be invested within the area of influence of the port, in the municipality of Covenas, which will be handled in separate account. Failure to comply with this mandate is a cause of misconduct, sanctioned with removal.

3. Three percent (3%) in an egalitarian way among the other maritime port municipalities in the department of Sucre in the Gulf of Morrosquillo, with the exception of the municipality of Santiago de Tolu.

The surplus to completion of fifty percent (50%), i.e. the twenty-nine point five percent (29.5%) will be distributed among the remaining municipalities of the department of Sucre not covered by the previous incissos, nor producers of large mining, using the following weighting mechanisms:

a) Twenty-five percent (25%) will be distributed equally, among all the municipalities of the department, not referred to in the previous paragraph, nor producers of large mining;

b) Thirty-two-point five percent (32.5%) of the same allocation will be distributed proportionally based on the population census of each beneficiary municipality;

c) The remaining forty-two-point five percent (42.5%) will be distributed in relation directly proportional to the number of inhabitants with basic unmet needs of each beneficiary municipality.

To obtain the figures to be distributed among the municipalities, the following formula will be used:

RCM = T * [(0.25/NoM) + 0.325 (PM/PT) + 0.425 PMNBI/PTNBI)]

RCM = Resources for each municipality.

T = Total resources to distribute.

PT = Total population municipalities to benefit.

PM = Township population.

PTNBI = Total population with NBI of municipalities to benefit.

The proportionality used in relation to the population and the basic unmet needs will be given by reason of the sum that they throw the beneficiary municipalities, excluding the data of the marine harbour municipality of the department of Sucre where the non-renewable natural resources are transported or their derivatives and the remaining marine harbour municipalities of the department of Sucre in the Gulf of Morroquillo.

50% (50%) corresponding to the municipalities of Cordoba will be directly rotated as follows:

1. Eleven point five percent (11.5%) for the port and maritime municipality of Cordoba where the non-renewable natural resources or their derivatives are transported.

2. Nine percent (9.0 percent) in equal form among the other maritime port municipalities in the department of Cordoba.

3. Twenty-seven-point five percent (27.5%) in equal form among the remaining municipalities of the department of Cordoba not covered by the previous incissos or producers of large mining.

4. The surplus to be completed fifty percent (50 percent), that is, two percent (2 percent), to the department of Cordoba to be transferred to the Autonomous Corporation of the Valleys of the Sinu and the San Jorge "CVS" for reforestation.

In the event that I will become a department (Cordoba or Sucre), two (2) or more maritime port municipalities, for which the non-renewable resources or their derivatives are transported, the percentage allocated to these municipalities will be applied to the volumes transported by each of them.

The step-step set out in Article 53 of Law 141 of 1994, will be applied independently by each port municipality where the hydrocarbons or their derivatives are transported.

Of the total amount or amount of royalties and compensation that the present paragraph deals with, each municipality will be deducted the sums that the Colombian Petroleum Enterprise, Ecopetrol, or the Nation has delivered or will give to them in the form of loans or advances.

PARAGRAFO 2o. 21 of Law 1530 of 2012. View Notes of Vigency. The new text is as follows: > If non-renewable natural resources are not transported through sea and river ports, the percentage of the distribution of royalties and compensation assigned to them will pass to the department in whose jurisdiction the respective resource was operated.

PARAGRAFO 3o. In the event that a non-renewable natural resource of national production, or its derivative, is transported between sea or river ports, the municipalities or districts in which the operation of loading and unloading will be carried out shall receive the royalties corresponding to the volume transported, in accordance with the rules and parameters established by this Law.

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ARTICLE 30. RIGHTS OF THE COASTAL MUNICIPALITIES OF THE MAGDALENA RIVER. 3 of Law 1283 of 2009. The new text is as follows: > The Regional Autonomous Corporation of the Rio Grande de la Magdalena, Cormagdalena, will receive ten percent (10%) of the annual income of the National Royalty Fund.

As a special mechanism for the implementation of the resources of the National Royalties Fund, the projects financed with these resources will be prioritized and approved by the Board of Directors of Cormagdalena, prior to the concept of the viability of the competent Sectoral Ministry. The Corporation shall report to the National Royalty Fund within five (5) working days of the approval of the Projects, specifying the ratio of the projects and their value. On the basis of this information, the Fund shall issue the administrative act by allocating the resources within five (5) working days of receipt thereof.

Of the resources that will be appropriated in each fiscal year, investments will be prioritized for environmental protection programs, ichthyological resources, and other renewable resources in the municipalities of the Colombian massif subregion, within the jurisdiction of Cormagdalena.

The allocations from the National Royalty Fund, corresponding to the approved investment projects, will be turned into a single account that will be used for the Cormagdalena effect.

The control and monitoring of the correct use of these resources will be exercised by the National Planning Department and the rotation of these resources will be subject to the mechanisms established for the correct use of the resources of the National Royalty Fund.

This provision will apply to other allocations from the National Royalty Fund, run Cormagdalena.

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ARTICLE 31. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF HYDROCARBONS. 27 of Law 756 of 2002. The new text is as follows: > Without prejudice to the provisions of Articles 48, 49 and 50 of this law, royalties derived from the exploitation of hydrocarbons shall be distributed as follows:

TABLE 1

Departments 47.5%
Producers or producer districts 12.5%
Municipalities or port districts 8.0%
National Royalty Fund 32.0%

PARAGRAFO 1o. In case the total production of a municipality or district is less than ten thousand (10,000) barrels daily average daily, the corresponding royalties will be distributed as follows:

TABLE 2

Departments 52%
Producers or producer districts 32%
Municipalities or port districts 8%
National Royalty Fund 8%

In case the total production of a municipality or district is greater than ten thousand (10,000) barrels, and less than twenty thousand (20,000) barrels daily average monthly, the royalties corresponding to the surplus over the ten thousand (10,000) barrels daily average monthly, will be distributed like this:

TABLE 3

Departments 47.5%
Producers or producer districts 25%
Municipalities or port districts 8%
National Royalty Fund 19.5%

PARAGRAFO 2o. When the total hydrocarbon production of a municipality or district is greater than twenty thousand (20,000) and less than fifty thousand (50,000) barrels daily average monthly, the royalties corresponding to the first twenty thousand (20,000) barrels will be distributed according to the previous paragraph and the surplus in the form set out in Table 1 of the same.

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ARTICLE 32. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF COAL. Without prejudice to the provisions of Articles 51 and 52 of this Law, royalties derived from the exploitation of coal shall be distributed as follows:

(a) Holdings larger than three (3) million tonnes per year:

Producers Departments ........................... 42.0%

Municipalities or producer districts .................. 32.0%

Port municipalities or districts ................... 10.0%

National Royalty Fund .......................... 16.0%

b) Holdings under three (3) million tonnes per year:

Producers Departments ........................... 45.0%

Municipalities or producer districts .................. 45.0%

Port municipalities or districts ................... 10.0%

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ARTICLE 33. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF NICKEL. The royalties derived from the exploitation of nickel will be distributed as follows:

Producer departments ............................ 55.0%

Municipalities or producer districts ................... 37.0%

Port Municipalities or Districts ..................... 1.0%

National Royalty Fund ............................ 7.0%

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ARTICLE 34. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF IRON, COPPER AND OTHER METALLIC MINERALS. The royalties derived from the exploitation of iron, copper and other minerals will be distributed as follows:

a) Iron and other metal ores:

Producers Departments .............................. 50.0%

Municipalities or producer districts ..................... 40.0%

Port municipalities or districts ....................... 2.0%

National Royalty Fund .............................. 8.0%

b) Copper:

Producers Departments ............................. 20.0%

Municipalities or producer districts .................... 70.0%

Municipalities or port districts ...................... 2.0%

National Royalty Fund ............................ 8.0%

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ARTICLE 35. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF PRECIOUS STONES. 20 of Law 756 of 2002. The new text is as follows: >

Department of Cundinamarca 10%
Boyaca Department 10%
Muzo Township 6%
Quipama Township 6%
San Pablo de Borbur Township 6%
Maripi Township 6%
Pause Township 6%
Buena Vista Municipality 3%
Otanche Township 5%
Coper Township 3%
Briceno Township 3%
Tunungua Municipality 3%
The Victoria Municipality 3%
Chivor Township 6%
Macanal Township 3%
Almeida Municipality 3%
Somondoco Municipality 3%
Chiquinquira Municipality 3%
Caldas Township 2%
Ubala Township 3%
Gachala Township 3%
Guveta Municipality <Guayata > 2%
National Royalty Fund 2%
Total 100%
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ARTICLE 36. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF GOLD, SILVER AND PLATINUM. 28 of Law 756 of 2002. The new text is as follows: > The royalties for the exploitation of gold, silver and platinum will be distributed as follows:

Department 10%
Producers or producer districts 87%
National Royalty Fund 3%
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ARTICLE 37. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF SALT. The royalties for the salt export will be distributed as follows:

Producers Departments ............................. 20.0%

Municipalities or producer districts .................... 60.0%

Port municipalities or districts ....................... 5.0%

National Royalty Fund ............................ 15.0%

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ARTICLE 38. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF LIMESTONE, SAND, CLAYS, GRAVEL AND OTHER NON-METALLIC MINERALS. The royalties for the exploitation of limestone, sand, clays, gravel and other non-metallic minerals shall be distributed as follows:

Producers Departments .............................. 20.0%

Municipalities or producer districts ..................... 67.0%

Municipalities or port districts ........................ 3.0%

National Royalties Fund ............................. 10.0%

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ARTICLE 39. DISTRIBUTION OF ROYALTIES DERIVED FROM THE EXPLOITATION OF RADIOACTIVE MINERALS. The royalties derived from the exploitation of radioactive minerals will be distributed as follows:

Producer departments ................................ 17.0%

Municipalities or producer districts ....................... 63.0%

Municipalities or port districts ......................... 5.0%

National Royalty Fund ............................... 15.0%

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ARTICLE 40. DISTRIBUTION OF MONETARY COMPENSATION RESULTING FROM THE EXPLOITATION OF COAL. The monetary compensation provided for in the contracts for the exploitation of coal will be distributed as follows:

Producer departments .............................. 12.0%

Municipalities or producer districts ...................... 2.0%

Port municipalities or districts ...................... 10.0%

Industrial and Industrial Enterprise of the State,

Ecocarbon, or who does its times ..................... 50.0%

Regional Corpes or Entity that

replace on whose territory

farms ...................................... 10.0%

Regional Autonomous Corporation in whose

territory is operated ................... 10.0%

Carbon Development Fund ............................ 6.0%

PARAGRAFO. If there is no Regional Autonomous Corporation, the compensation in favor of these will increase those assigned to the Fund for the Development of Coal.

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ARTICLE 41. DISTRIBUTION OF MONETARY COMPENSATION ARISING FROM THE EXPLOITATION OF NICKEL. 22 of Law 756 of 2002. The new text is as follows: > The monetary compensations stipulated in the contracts for the exploitation of nickel will be distributed as follows:

Departments 42.0%
Producers or Producer Districts 2.0%
Municipalities or Districts port 1.0%
Autonomous Corporation
On whose territory the exploitation is performed
55.0%

PARAGRAFO. The monetary compensation for the exploitation of nickel assigned to the department of Cordoba as a producer department, will be distributed among the non-producing municipalities of the San Jorge area:

Liberator Municipality 9.0%
Ayapel Township 8.0%
Municipality of Planet Rica 8.0%
Town Township 7.0%
Buenavista Municipality 5.0%
Township 5.0%
Total 42.0%
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ARTICLE 42. DISTRIBUTION OF MONETARY COMPENSATION DERIVED FROM THE EXPLOITATION OF IRON, COPPER AND OTHER METALLIC MINERALS. The monetary compensations provided for in the contracts for the exploitation of iron, copper and other metal minerals of State ownership shall be distributed as follows:

a) Iron and other metal ores:

Producers Departments .............................. 10.0%

Municipalities or producer districts ..................... 4.0%

Municipalities or collection districts ........................ 50.0%

State Industrial and Commercial Enterprise ........ 36.0%

b) Copper:

Producers Departments .............................. 28.0%

Municipalities or producer districts ..................... 70.0%

Municipalities or Collection Districts ........................ 2.0%

PARAGRAFO. The compensation for the exploitation of the iron in the Department of Boyaca will be distributed as follows:

Nobsa Municipality ............................................... 17.0%
Sogamoso Municipality ....................................... 17.0%
Rio Peace Municipality ...................................... 17.0%
Gameza Township ........................................... 1.0%
Corral Township ........................................... 1.0%
Topaga Township ............................................ 1.0%
Iza Municipality .................................................. 1.0%
Firavitup Township .......................................... 1.0%
Tibasosa Township ........................................... 1.0%
Fishing Township ............................................... 1.0%
Cuitive Township .............................................. 1.0%
Mongui Township ............................................. 1.0%
Mongua Township ............................................ 1.0%
Tasco Township ............................................... 1.0%
Sativorte Township ..................................... 1.0%
Sativasur Township ......................................... 1.0%
Industrial and Commercial Enterprise ........ 36.0%
Total ..................................................................... 100.0%
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ARTICLE 43. DISTRIBUTION OF MONETARY COMPENSATION ARISING FROM THE EXPLOITATION OF EMERALDS AND OTHER PRECIOUS STONES. 21 of Law 756 of 2002. The new text is as follows: > Monetary compensations arising from the exploitation of emeralds and other precious stones shall be distributed as follows:

Department of Cundinamarca 10%
Boyaca Department 10%
Muzo Township 6%
Quipama Township 6%
San Pablo de Borbur Township 6%
Maripi Township 6%
Pause Township 6%
Buena Vista Municipality 3%
Otanche Township 5%
Coper Township 3%
Briceno Township 3%
Tunungua Township 3%
The Victoria Municipality 3%
Chivor Township 6%
Macanal Township 3%
Almeida Municipality 3%
Somondoco Municipality 3%
Chiquinquira Municipality 3%
Caldas Township 2%
Ubala Township 3%
Gachala Township 3%
Guveta Municipality <Guayata > 2%
National Royalty Fund 2%
Total 100%
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ARTICLE 44. DISTRIBUTION OF MONETARY COMPENSATION RESULTING FROM THE EXPLOITATION OF OTHER PRECIOUS STONES. The monetary compensations stipulated in the contracts for the exploitation of other precious stones of State ownership shall be distributed as follows:

Producers Departments ........................... 45.0%

Municipalities or producer districts .................. 40.0%

State Commercial and Industrial Enterprise,

Mineralco S.A., or who does its times............. 15.0%

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ARTICLE 45. DISTRIBUTION OF MONETARY COMPENSATION RESULTING FROM THE EXPLOITATION OF SALT. 4 of Law 1283 of 2009. The new text is as follows: > The monetary compensations stipulated in the contracts for the exploitation of the salt, will be distributed as follows:

-- Producer departments 10.0%

-- Municipalities or producer districts 85.0%

-- Municipalities or port districts 5.0%

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ARTICLE 46. DISTRIBUTION OF MONETARY COMPENSATION RESULTING FROM THE EXPLOITATION OF OTHER NON-RENEWABLE NATURAL RESOURCES. The monetary compensation provided for in the mining or oil contracts which aim at the exploitation of non-renewable natural resources of State ownership, which are not expressly regulated in this Law, shall be distributed as follows:

Producers Departments ........................... 10.0%

Municipalities or producer districts .................. 65.0%

Municipalities or port districts .................... 5.0%

Regional Investment Fund ..................... 10.0%

Regional Autonomous Corporation in whose

territory is made from holdings ............ 10.0%

PARAGRAFO. In the case of no Regional Autonomous Corporation, the compensation for these increases is granted to the Regional Investment Fund (FIR).

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