By Which Creates And Regulates The Operation Of Savings And Stabilization Fund Oil

Original Language Title: Mediante la cual se crea y reglamenta el funcionamiento del Fondo de Ahorro y Estabilización Petrolera

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ACT 209 OF 1995

(August 30)

Official Journal No. 41,981 of 30 August 1995

By which the operation of the Oil Savings and Stabilization Fund is created and regulated.

Vigency Notes Summary

THE CONGRESS OF COLOMBIA,

DECRETA:

ARTICLE 1o. 150 of Law 1530 of 2012 > Create the Oil Savings and Stabilization Fund as an offshore account management system, without legal status and with sub-accounts to the name of the Colombian Petroleum Enterprise, Ecopetrol, of the departments and municipalities receiving royalties and monetary compensation and the National Royalty Fund, for the purposes of withholding taxes on the rights that each production unit recognizes the current legislation, especially the Law 141 1994.

The transfer of these resources to the Fund does not mean that they are appropriated by the nation. This transfer has a strictly temporary nature and exclusive purposes of fiscal saving and macroeconomic stabilization.

The non-producing municipalities of the hydrocarbon producing department are not the subject of this Law.

PARAGRAFO. The obligation to withhold resources from the Petroleum Savings and Stabilization Fund does not apply to the one linked to the Colombian Petroleum Enterprise, Ecopetrol, through an oil association agreement.

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ARTICLE 2o. 150 of Law 1530 of 2012 > For the purposes of this Law, a production unit shall be deemed to be the field or group of production fields. oil.

It will be presumed that each production unit will be made up of an oil production field, except that the National Government through the Ministries of Finance and Public Credit and Mines and Energy will have two or more more fields to be grouped together where there are reasons such as neighbourhood, joint development or use of a common service infrastructure.

PARAGRAFO. The fields of Cusiana and Cupiagua constitute a unit of production for the purposes of this Law. The National Government will not be able to annex new fields to this production unit.

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ARTICLE 3o. 150 of Law 1530 of 2012 > The Petroleum Savings and Stabilization Fund shall be administered by the Bank of the Republic, by means of a contract signed by the Ministries of Finance and Public Credit and Mines and Energy, which will only require the signatures of the Minister of Finance and Public Credit, the Minister of Mines and Energy and the Manager of the Bank of the Republic and their publication in the Official Journal, after approval of the Steering Committee of the Savings and Stabilization Fund Oil.

PARAGRAFO. The Board of Directors of the Resources of the Fund to be agreed with the Bank of the Republic, may in no case be more than three per thousand (3X1,000) of the value of the annual assets.

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ARTICLE 4. 150 of Law 1530 of 2012 > For the application of this Law, the following definitions shall be taken into account:

1. Income. It is the part of the value of the monthly production of a production unit that, according to the law, corresponds to each department or municipality receiving royalties and monetary compensations, to the National Fund of Royalties or the Colombian Petroleum Company, Ecopetrol, calculated at the royalty settlement price, which will be expressed in dollars from the United States of America.

For the conversion, the representative exchange rate of the average market for the month or quarter to which the settlement corresponds shall be taken as a reference.

The sum of the values corresponding to the entities mentioned in the first paragraph of this numeral is the income of the unit of production. The portion of crude oil owned by the entity associated with Ecopetrol shall not be part of the production unit's income.

2. Basic income. It is the income that corresponds according to the law to each of the entities referred to in the previous number, when the monthly income belonging to each category of entities in the unit of production, is one of the following values:

Million

Ecopetrol US $9,3333

National Royalty Fund 2.0911

Producer departments 2.2625

Producers 0.4670

Port Municipalities 0.3421

Non-producing departments 0.2175

The basic income of the entities that make up each category will be calculated on a monthly basis:

The basic income of the category to which it belongs multiplied by the percentage share of the entity of the total income of the month, of the corresponding category.

When the production unit consists of two oil fields in production, the values set out in this numeral shall be doubled. When it consists of three fields, it will be multiplied by 2.75 and when it consists of four or more fields per 3.25.

The values indicated in this article will be adjusted in the first month of each year with the percentage of inflation in the United States of America recorded in the year immediately preceding, as measured by the consumer price index.

3. Additional income. It is the sum that exceeds the basic income.

4. Average Additional Income. This is the average of the monthly additional revenue, calculated from the first month in which each of the entities referred to in the number 1o. of this article obtained additional income and up to the month in consideration.

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ARTICLE 5o. 150 of Law 1530 of 2012 > The Oil Savings and Stabilization Fund will be formed with the sums that the Colombian Petroleum Enterprise, Ecopetrol, will turn for the excess that present the additional income of the entities referred to in the numeral 1. of the previous article on the average additional income of the same, calculated in the respective month. However, the final settlement will be done every quarter.

Ecopetrol will rotate the Fund within ten (10) days of the date on which it receives the settlement of the advances, the resources that according to this Law will save the entities involved in it.

If, when the final quarterly settlement is carried out, a value greater than the amounts paid as a advance from that quarter, the balance to be retained for the Oil Savings and Stabilization Fund must be rotated within the ten (10) days following receipt of the settlement. If, on the other hand, when the definitive liquidation is carried out, it appears that there is a balance in favor of Ecopetrol, the latter will be deducted from the sums to be turned to the Fund in the following quarter.

PARAGRAFO. The withholding tax in favour of the Oil Savings and Stabilization Fund referred to in this Article shall only be made from 1. of January 1996. Except in the case of a producer municipality, the withholding tax may be effected only from 1 January. of January 1997.

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ARTICLE 6o. 150 of Law 1530 of 2012 > To carry out the withholding tax in favor of the Petroleum Savings and Stabilization Fund, the Ministry of Mines and Energy will proceed with the next way:

1. It will liquidate royalties, monetary compensations and participations that correspond to the departments and municipalities receiving royalties and monetary compensation and the National Royalty Fund, in accordance with the law href="ley_0141_1994.html#1"> 141 of 1994 and shall forward the settlement to Ecopetrol, within five (5) common days following its elaboration, which shall rotate them in pesos to their recipients in a portion not to be held for the Fund of Oil Saving and Stabilization.

2. The portion of royalties, monetary compensations and participations that under this Law must be retained for the Fund, shall be rotated in dollars of the United States of America by Ecopetrol in the name of each of the participating entities, prior to conversion to the representative exchange rate of the day on which the settlement is made.

Ecopetrol will use its liquidity abroad to carry out these turns.

3. Likewise, the Colombian Petroleum Enterprise, Ecopetrol, will turn to the Oil Savings and Stabilization Fund, the portion that will be the most appropriate to save on the production of crude oil from its property.

PARAGRAFO. The unit-holders of the Petroleum Savings and Stabilization Fund will be able to verify quarterly, before Ecopetrol and the Ministry of Mines and Energy, the production of their deposits, the royalties received and the participation or savings that Under this Law, it must be retained for the Petroleum Savings and Stabilization Fund, in case there are discrepancies the entities will be able to make the corresponding claim to the Board of the Savings and Stabilization Fund. Oil and this in turn, will give you the corresponding procedure.

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ARTICLE 7o. 150 of Law 1530 of 2012 > The rights of the participating entities in the Petroleum Savings and Stabilization Fund shall be represented in units of equal amount and characteristics. The number of units corresponding to each of them shall be set in proportion to the sums withheld.

The value of the units will be expressed in dollars of the United States of America and will be determined daily, according to the method established by the Bank of the Republic, after approval of the Steering Committee of the Savings Fund and Oil Stabilization.

The Bank of the Republic will define the valuation method of the Oil Savings and Stabilization Fund taking into account the class, nature and liquidity of the securities in which its resources are invested. In any event, the method to be established must ensure that profits are properly distributed.

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ARTICLE 8o. 150 of Law 1530 of 2012 > The Oil Savings and Stabilization Fund will keep separate accounts for each production unit, as well as for each entity involved.

The Fund's accounting will be carried in dollars from the United States of America.

The National Government will set the rules regarding the handling of the accounts and sub-accounts of the Petroleum Savings and Stabilization Fund, after approval of the Steering Committee of the Petroleum Savings and Stabilization Fund.

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ARTICLE 9o. 150 of Law 1530 of 2012 > The financial results of the Oil Savings and Stabilization Fund shall be counted daily in the sub-accounts of the participating entities and are reflected in the daily value of each of the units that make up the unit.

Within the first month of each calendar year, the Fund will rotate the accumulated earnings during the year immediately preceding, corresponding to each entity, which will be used in the manner provided for by the href="ley_0141_1994.html#14"> 14 and 15 of Act 141 of 1994.

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ARTICLE 10. 150 of Law 1530 of 2012 > The Oil Savings and Stabilization Fund will make its resources to the unit-holders only when the additional income average exceeds the additional income as follows:

1. The excess of the additional average income on the additional income, when such excess is equal to or less than 2.5% of the balance of the account of the month immediately preceding.

2. Where the surplus exceeds the percentage indicated in the number 1, the Fund shall, in monthly instalments, turn 2.5% of the balance of the month immediately preceding it.

3. Where the balance of an account is equal to or less than the basic income of the month, it shall be divided into three equal monthly instalments.

The sums that are to be reintegrated into the Fund, as well as the interest under which Article 9o is dealt with under this Article, are to be reintegrated into the Fund. of this Law, will be rotated by the Bank of the Republic to the Colombian Petroleum Enterprise, Ecopetrol, which must distribute them within ten (10) days after the date on which it receives it. The Banco de la República will carry out the reintegration and pay the interest in dollars of the United States of America and Ecopetrol will make the distribution of the same in Colombian legal currency, according to the representative rate of the market of the day in the payments are made.

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ARTICLE 11. 150 of Law 1530 of 2012 > The Oil Savings and Stabilization Fund will have a Steering Committee formed as follows:

a) The Minister of Finance and Public Credit, who will preside over it;

b) The Minister of Mines and Energy;

c) The Director of the National Planning Department;

d) The President of Ecopetrol;

e) The Governor of each of the producer departments in whose territory the fields referred to in this Law are located;

f) A mayor of a producer municipality for each producer department, chosen by the Departmental Assembly;

g) Two representatives of the non-producing departments and municipalities, selected by the Senate and House Committees, independently of one by the Commission.

The Manager of the Bank of the Republic, as the Fund's Administrator, will be a member of the Committee, with a voice, but without a vote.

Members of the Steering Committee may only delegate assistance to their deliberations in the official who follows them in hierarchy within their entity.

PARAGRAFO. The National Government will take the necessary measures to integrate the Fund's Steering Committee within four months prior to the date on which the first holds for the Savings Fund will be made. and Petroleum Stabilization.

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ARTICLE 12. 150 of Law 1530 of 2012 > The Steering Committee of the Petroleum Savings and Stabilization Fund will have the following functions:

1. To study and approve the Convention with the Bank of the Republic for the administration of the fund.

2. To determine the policy of financial investments with the resources of the Fund, which shall be made in foreign currency or in securities issued abroad, in conditions of security, profitability and liquidity. Investments in these resources may include the purchase of representative Colombian foreign debt securities.

3. Approve the Fund's financial statements.

4. Give yourself your own rules.

PARAGRAFO. The exercise of the privileges indicated in the number 2o. of this article requires the favorable vote of the Minister of Finance and Public Credit.

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ARTICLE 13. 150 of Law 1530 of 2012 > It will be the faculty of the Administrator of the Oil Savings and Stabilization Fund to decide autonomously on the purchase and sale of securities or securities financial, in accordance with the policy outlined by the Steering Committee.

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ARTICLE 14. 150 of Law 1530 of 2012 > The resources retained in the Oil Savings and Stabilization Fund constitute income only for the entities participating in the Fund. They will produce in favour of them the reintegrals to which they are entitled.

Consequently, they are not tax generators, nor can they be budgeted, accounted for or used as a counterpart or guarantee of credits before their actual perception.

Without prejudice to the provisions of this Law, the producers ' departments and municipalities and the new non-governmental departments of the Orinoquia will be able to dispose of the resources saved, with exclusive destination for the prepaid debt. prior to the validity of this Law.

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ARTICLE 15. 150 of Law 1530 of 2012 > The resources retained in the Oil Savings and Stabilization Fund are not part of the country's international reserves.

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ARTICLE 16. 150 of Law 1530 of 2012 > The provisions of this Law relate only to the production of crude oil and, in no case, to that of gas.

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ARTICLE 17. 150 of Law 1530 of 2012 > If the agreed income is higher than those provided for in this Law, the part of Ecopetrol's income, which should not be saved, may serve, once the investment costs of Ecopetrol are covered, to meet the requirements of the contingent resources referred to in Article 1. of the Law of the National Plan of Development and Public Investments, with the resources of entities other than Ecopetrol being excluded from this consideration.

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ARTICLE 18. 150 of Law 1530 of 2012 > This Law governs as of its enactment, amends Law 141 of 1994 and repeals the provisions that are contrary.

The President of the honorable Senate of the Republic,

JUAN GUILLERMO ANGEL MEJIA.

The Secretary General of the honorable Senate of the Republic,

PEDRO PUMAREJO VEGA.

The President of the honorable House of Representatives,

ALVARO BENEDETTI VARGAS.

The Secretary General of the honorable House of Representatives,

DIEGO VIVAS TAFUR.

COLOMBIA-NATIONAL GOVERNMENT

Publish and execute.

Dada en Santafe de Bogota, D. C., on August 30, 1995.

ERNESTO SAMPER PIZANO

The Minister of the Interior,

HORACIO SERPA URIBE.

The Minister of Finance and Public Credit,

GUILLERMO PERRY RUBIO.

The Minister of Mines and Energy,

RODRIGO VILLAMIZAR ALVARGONZÁLEZ

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