Why Empresa Colombiana De Gas, Ecogas, The Vice Ministry Of Hydrocarbons Is Created And Other Provisions

Original Language Title: Por la cual se crea la Empresa Colombiana de Gas, Ecogas, el Viceministerio de Hidrocarburos y se dictan otras disposiciones

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ACT 1997 (August 20)
Official Gazette No. 43,114, of 26 August 1997
Whereby Empresa Colombiana de Gas, Ecogas is created, the Vice Ministry of Hydrocarbons and dictate other provisions. Summary

Term Notes
ARTICLE 1o. CREATION. Créase a decentralized entity of national order, under the Ministry of Mines and Energy with the character of Industrial and Commercial State, with legal, administrative, financial and patrimonial autonomy, Empresa Colombiana de Gas will be called and you can use the acronym Ecogas , entity governed by the provisions of this law, by statute adopted and approved by the Board and subject to regulation, supervision and control of the competent authorities. Effective Notes

Article 2.
. OBJECT. Empresa Colombiana de Gas, Ecogas, will aim the planning, organization, expansion, maintenance, operation and commercial exploitation of transport systems own natural gas. You can also commercially exploit the capacity of gas pipelines owned by third parties for which a fee is paid availability, or agreements with them. Ecogas administer the Coordination Center for Natural Gas Transport, CTG.
To fulfill its purpose the company may perform all acts and contracts, subject to legal regulations, providing their statutes.
The Coordination Center for Natural Gas Transport, CTG will be established and will operate as a functionally independent unit within the structure of Ecogas. The competent authorities shall take the necessary measures to ensure that the CTG operates in a non-discriminatory for the benefit of the National System of Natural Gas Transportation measures. Effective Notes

Effective Jurisprudence

ARTICLE 3o. The functions of the Coordination Center for Natural Gas Transport, CTG, are as follows:
a) planning, supervising and coordinating the transport of gas through the National System of Natural Gas Transportation;
B) Receive and process nominations natural gas transport system;
C) Assign transport capacity to each of the sender, according to the type of services and operating conditions of the system;
D) Plan and ensure maximum system capacity at all times;
E) Ensure the safety and reliability of the system;
F) Ensuring quality transport service;
G) To ensure strict compliance with regulations and relevant regulations;
H) To act as a coordinating entity in an emergency;
I) Other functions assigned by law and regulations.
PARAGRAFO 1o. The Coordination Center Transport Gas Natural, CTG will use all the information that is supplied by the Main Control, CPC, belonging to different pipelines that are part of the National System of Natural Gas Transportation by the Dispatch Center Centers electric, CND and compressor stations, among others, to ensure the integrated operation of the system is appropriate for economic, safe and is done on the principle of free access and non-discrimination.
PARAGRAFO 2o. The Coordination Center Transport Natural Gas CTG, will have a Director who must meet the following conditions:
a) Be Colombian and active citizen;
B) Hold a university degree and postgraduate studies;
C) Have a recognized technical training and experience not less than five (5) years in the area of ​​hydrocarbons and energy.
PARAGRAFO 3o. The whole infrastructure of the National System of Natural Gas Transportation must comply with the rules and operational conditions that set the competent authorities directly or through the Coordination Center for Natural Gas Transport, CTG.
The Energy Regulatory Commission and Gas, establish such rules and operating conditions through the "Unico Regulation of Natural Gas Transportation".
PARAGRAFO 4o. Empower yourself creating a Main Control Centre, CPC, for the transport subsystem Llanos which will be located in the city of Yopal, Casanare, where technical conditions so require.
PARAGRAFO 5O. The headquarters of the Coordination Center for Natural Gas Transport, CTG, will be domiciled in the city of Bucaramanga. Effective Notes

Effective Jurisprudence

. Create the National Operation Council of Natural Gas, CNO, which, as an advisory body of the Coordination Center of Natural Gas Transportation, CTG, function will be to make recommendations seeking the integrated operation of the National System of Natural Gas Transportation is safe, reliable and economical. The National Council of Natural Gas Operation Technical Secretary, who will also be the Director of the Coordination Center for Natural Gas Transport, CTG. Effective Notes

Effective Jurisprudence

Editor's Notes

The 5th ARTICLE. The CNO National Operation Council will consist of: one (1) representative of the Ministry of Mines and Energy, who will preside; four (4) representatives of the companies producing at a rate of one (1) per 25% of the total gas production in the country; four (4) representatives from senders at the rate of one (1) per 25% of total demand in the country, two (2) of them representatives of the thermoelectric sector, for one (1) representative of the National Center for Electrical Firm ; by the Director of the Coordination Center for Natural Gas Transportation, CTG.
PARAGRAFO. It also will have seats in the National Gas Operations, CNO, representatives of the transport systems of natural gas that have more than 50 million cubic feet capacity. Effective Notes

. The National Council of Gas Operations, CNO, will develop its activities in coordination with producers and distributors of natural gas, with the National Electricity Dispatch Centre and the Centre for the Coordination of Gas Transportation, CTG. Effective Notes

Article 7. ADDRESS AND DURATION. Empresa Colombiana de Gas, Ecogas will be domiciled in the city of Bucaramanga, and its duration is indefinite. Effective Notes

. CAPITAL AND HERITAGE. Escíndense the heritage of the Colombian oil company Ecopetrol assets and rights related to the activity of transporting natural gas, as well as the rights arising out of contracts related to such activity, for the establishment of initial assets of Ecogas.
To this end, the National Government is authorized to make within a period of three (3) months from the effective date of this law, determine deliver assets, lease contracts, and legal relations arising between Ecopetrol and related construction contracts, operation, maintenance and transfer ( "BOMT"), among others, Cali-Mariquita and Ballena-Barrancabermeja and the Sebastopol-Medellin grant and others that may be required in Ecogas cleaving process. Ecopetrol
spin off assets linked to the activity of transporting natural gas by the book value thereof at the time of delivery. For purposes of accounting and financial inclusion of such assets to equity Ecogas, it will assess them according to a methodology to ensure the financial viability of the company. In any case, this assessment may not exceed 80% of the value of the assets in books Ecopetrol. The difference will be assumed by the Nation and disclosed in its balance sheet.
The assets of Empresa Colombiana de Gas, Ecogas may be composed also by:
a) The assets and rights that the Nation, decentralized territorially or services in any order, entities will transfer to any title ;
B) The proceeds of the investment and reinvestment of profits corresponding to the Company according to legal standards;
C) Other assets that the Company acquire any title.
PARAGRAFO. For purposes of recognition by Ecogas of economic entitled Ecopetrol to assume the payment of all obligations under service contracts to transport natural gas to in the clause 2 of this Article consideration, the two entities will design a payment scheme that does not exceed 80% of the net present value (NPV) of those obligations and to ensure the profitability and financial viability of Ecogas.
Ecogas Ecopetrol will yield to the rights of option that takes into construction contracts, operation, maintenance and transfer ( "BOMT"), among others, the Cali-Mariquita and Ballena-Barrancabermeja pipeline. Effective Notes

Article 9. ORGANS OF MANAGEMENT AND ADMINISTRATION. The Company shall have a Board which shall perform the functions assigned to him the statutes and which shall consist of the Minister of Mines and Energy, who will preside, and the Vice Minister of Hydrocarbons, who will be his deputy, the Minister of Finance and Public Credit or his delegate, and five (5) members and their respective alternates, who shall be appointed by the President of the Republic, of which two (2) members belong to the producing regions and two (2) to the consuming regions.
Business Administration will be headed by a president, who will be its legal representative and agent of the President of the Republic, their appointment and removal. The functions of the President of the Company shall be defined in the statutes.
PARAGRAFO. The President of the Republic shall appoint the members of the Board of Directors of the Company other than the Ministers of Mines and Energy and Finance and their deputies, within thirty (30) days following the publication of this law days. Effective Notes

Article 10. The Company Colombiana de Gas, Ecogas, together with the Colombian oil company Ecopetrol will form a business group that the latter will be led in the terms established by Article 28 of Law 222 of 1995 | || This business group will coordinate sole purpose of industrial and characteristics of the two companies will not generate business and enterprise unit for any legal effect.
The Boards of Directors of both entities, within a period of six (6) months from the effective date of this law, in their respective statutes, adopted the provisions and measures developing the provisions of this Article . Effective Notes

ARTICLE 11. In order to ensure efficient delivery of public service gas, fuel transport physical network to all users of the national territory, different to its exploration activities. exploitation and processing shall be governed by the provisions of Law 142 of 1994. PARAGRAPH 1.
. The exploration, exploitation, processing and transportation of crude oil and its by-products not subject to the provisions of Law 142 of 1994. These activities continue to be governed by special rules contained in the Petroleum Code, Decree 2310, 1974 and the provisions which supplement added or reformed.
PARAGRAFO 2o. The powers provided in Law 142 of 1994 in relation to the home, commercial and industrial utility fuel gas, only preached in cases where the gas is used effectively as fuel rather than as raw material for petrochemical industrial processes. Effective Notes

ARTICLE 12 LABOR REGIME. Persons who provide their services in Ecogas, except for the Chairman thereof, have the status of official employees and shall be subject to the legal regime established for that category of public servants. Effective Notes

resources Créase with Ecopetrol, the Institute for Training and Research Casanare, for the training of specialized technical personnel in the industry of hydro carbons, particularly in technologies for exploration, drilling and transportation, based in Yopal , Casanare. That institution may conclude agreements for the management and development of programs that are incumbent with public and private entities engaged in these areas. Effective Jurisprudence

PARAGRAFO. When conditions warrant, the training institution referred to in this Article, may adopt training programs in areas other than those already mentioned, in agreement with the SENA or other public or private entities.

ARTICLE 14. Authorize the national government to adopt by decree, measures of budgetary measures necessary to ensure the operation, commercial operation and initial investments Ecogas.
PARAGRAFO TRANSIENT. Within six (6) months following the entry into force of this law, the Government will identify priority investments for transportation of natural gas, needed in the areas of emergency under Law 218 of 1995
Effective notes

ARTICLE 15. In order to promote and co-finance projects aimed at developing infrastructure for the use of natural gas in municipalities and rural areas, primarily within the area of ​​influence of the main gas pipelines, and have the highest rate Unsatisfied Basic Needs (NBI), believe a special fund administered and managed by the Board of Ecogas, whose resources come from a fee-building, which shall be one and a half percent (1.5%) on the value of the rate charged for gas transportation object, actually performed.
Will be subject to the quota established in this article all natural or legal persons who are senders of the National System of Natural Gas Transportation. Effective Notes

Effective Jurisprudence

ARTICLE 16. PRIORITIES FOR NATURAL GAS SUPPLY. When insurmountable restrictions on the supply of natural gas or serious emergencies, not temporary, that ensuring a minimum supply demand, the National Government in accordance with the regulations, and parameters established in the Law 142 of 1994 introduced and prior concept of the National Council of Operation Gas, determine the order of priority in question, taking into account the effects on the population, the needs of power generation, the duly perfected contracts as well as all those criteria that allow a balanced solution consumption needs in the region or regions affected.

ARTICLE 17. Create the Vice Ministry of Hydrocarbons which have the following functions:
a) Assist in the formulation of policies or action plans hydrocarbons subsector, under the direction of the Minister;
B) coordinate the course of the bills related to the hydrocarbons subsector, for which assist the Minister in the preparation of such projects and their constitutional process and coordinate care of subpoenas to Congress;
C) Ensure, together with other authorities, compliance with the rules on protection, conservation, preservation of natural and environmental resources developed by the hydrocarbon sector;
D) To replace the temporary absence of the Minister, upon decision of the President of the Republic;
E) Prepare reports on plans and programs in the hydrocarbon sector to be submitted to the National Planning Department and other public authorities;
F) Any other duties as assigned by the Minister of Mines and Energy or the laws.
PARAGRAFO. The Deputy Minister of Hydrocarbons will be the Deputy Minister of Mines and Energy on the board of industrial and commercial enterprises of the state in the hydrocarbons subsector, such as Ecopetrol and Ecogas. Effective Jurisprudence

ARTICLE 18. EFFECTIVE DATE. This law applies from the date of its publication and repeals all provisions that are contrary.
The President of the honorable Senate,
The Secretary General of the honorable Senate,
The President of the honorable Chamber of Representatives,
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
published and execute.
Given in Bucaramanga, 20 August 1997.

Ernesto Samper Pizano Minister of Finance and Public Credit, JOSE ANTONIO OCAMPO
The Minister of Mines and Energy, RODRIGO

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