619 OF 2000

(October 20)

Official Journal No 44.200 of 20 October 2000

COLOMBIA CONGRESS

By which the Law 141 of 1994 is amended, distribution criteria are established and other provisions are dictated.

DECRETA:

ARTICLE 1o. When a field of a non-renewable natural resource is located in two or more territorial entities, the distribution of royalties and compensation shall be in the form of proportional to the participation of each entity in that field, in the terms stipulated in Law 141 of 1994, regardless of the area that is being exploited on the date of the liquidation. The Ministry of Mines and Energy, taking into account the area of the field and the production volumes, for each case, by resolution, will define the participation that corresponds to each territorial entity.

ARTICLE 2o. For the non-renewable natural resource holdings located in the jurisdictional maritime spaces, the distribution of the participation of royalties and the compensation it shall carry out in proportion to territorial entities with sea coasts that are located up to 40 nautical miles from the holding area, in the terms stipulated in Law 141 of 1994. The Ministry of Mines and Energy, for each case, by resolution, will define which and in what proportion each territorial entity will participate.

PARAGRAFO 1o. In events in which the field of the non-renewable natural resource located in the jurisdictional maritime spaces, benefits two or more territorial entities, the distribution of the royalties and compensation will be made by applying the criteria in article 1or. of this law.

PARAGRAFO 2o. The royalties and compensations that are caused by the new farms of non-renewable natural resources in the maritime spaces jurisdictional of the Caribbean Sea where the producer departments are different to the Archipelago Department of San Andrés and Providencia and Santa Catalina will give to this Department ten percent (10%) of the shares of royalties and compensations, which must be used in the terms established in article 14 of Law 141 of 1994.

ARTICLE 3o. When, for the first time, it is carried out by a port, maritime or river municipality, non-renewable natural resources and their derivatives, the National Royalties Commission, prior to study and The Ministry of Mines and Energy's concept will make the respective distribution of royalties and compensations caused, in accordance with the criteria of article 29 of Law 141 of 1994. The Commission shall establish whether the area of influence by the loading and unloading of these resources covers other neighbouring municipalities and, consequently, shall have them as beneficiaries of the respective distribution.

ARTICLE 4o. When in an indigenous guard, or at a point located no more than five (5) kilometers from the area of the indigenous guard, non-renewable natural resources are exploited, five percent (5%) of the value of the royalties corresponding to the Department for that exploitation, and twenty percent (20%) of those corresponding to the municipality will be assigned to investment in the areas where the indigenous communities are located and will be used in the terms established in article 15 of Law 141 of 1994.

PARAGRAFO. When the indigenous guard is a territorial entity, it will be able to receive and execute the resources directly, in a different case, the resources will be received by the municipalities and executed in consultation with the indigenous authorities by the respective municipality, having regard to the provisions of this Article.

ARTICLE 5o. In non-renewable natural resource holdings of subsoil private property, the subsoil owner will pay the percentage equivalent to that established as royalty in the article 16 of Act 141 of 1994 for the holdings of these resources, which will be distributed under the same terms and conditions as laid down in Law 141 of 1994, with the amendments and regulations.

ARTICLE 6o. For the purposes of the liquidation of the carboniferous royalties and in order to avoid artificial fractionations in the mining companies, the liquidation shall be made on the total production that corresponds to to the holding unit of the same holder, applying the volumes and percentages set out in Article 16 of Law 141 of 1994. The National Government will make the relevant regulations and the Ministry of Mines and Energy, by resolution, will define the boundaries of the respective operating unit.

ARTICLE 7o. The second paragraph of article 9or. Thus, it is defined as a producer department whose income from royalties and compensations, including those of its producer municipalities, is equal to or greater than three percent (3%) of the total royalties and compensations that are generated in the country. No account shall be taken of the own resources allocations of the National Royalty Fund or those received by the departments as a result of the reallocations set out in Article 54 of Law 141 of 1994.

ARTICLE 8o. The first paragraph of the paragraph of Article 5or Law 141 of 1994, shall be as follows:

The Commission will allocate 13% (13%) of the Fund's own annual revenues, for projects submitted by the territorial entities in accordance with this law and for the exclusive purposes prescribed in Article 361 of the Political Constitution, distributed as follows:

This paragraph is added to the numeral 17 which will remain so:

" 17. The zero point three hundred and seventy-five percent (0.375%) to the municipality of Sincelejo, for the next ten years, destined for the decontamination and channeling of the creeks and canoes. "

ARTICLE 9o. The fourth paragraph of article 1or. of Law 141 of 1994, will remain so:

One hundred percent (100%) of resources for the promotion of mining should be applied in the terms of Article 62 of this law. Of these, thirty percent (30%) will be administered by the Institute of Research of Geosciences, Mining and Chemistry, Ingeominas and the seventy percent (70%) remaining by the National Mining Company, Minercol, which will distribute it according to With the priorities of the National Government and the development needs of the three mining subsectors to know: metals and precious stones, minerals and industrial materials, and energy minerals.

Of the annual resources administered by the National Mining Company, forty percent (40%) will be allocated to the execution of the special mining projects and those referred to in Article 62 the present law. For this purpose, territorial entities must submit annually to the mining authority and for approval in the National Royalty Fund a program integrated by the special mining projects to be developed in the territory of their territory. competence.

ARTICLE 10. The numeral 1o. Article 10 of Law 141 of 1994 will thus remain:

1. Practice, directly or through delegates, inspection visits to the territorial entities benefiting from royalties and compensation, and suspend the disbursement of them when the territorial entity is making use of the same in form inefficient or inadequate, until the situation is overcome.

ARTICLE 11. Article 14 of Law 141 of 1994 will remain so:

ARTICLE 14. Use by the departments of the units established in this law. Royalty and monetary compensation resources distributed to the producer departments will have the following destination:

a) Ninety percent (90%) to investment in priority projects that are covered by the Department's overall development plan or the development plans of its municipalities, and

(b) 10% (10%) for the financial controller and the implementation of projects to be implemented with these resources.

While departmental entities reach minimum coverage in infant mortality indicators, basic health and education coverage, drinking water, and sewage, the corresponding departmental entity will have to allocate at least the Fifty percent (50%) of the total of their 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 made by the departments of the royalties and compensation units in favor of the Regional Councils of the Economic and Social Planning, Corpes, or the entity that replaces it, and the Regional Investment Funds, FIR.

PARAGRAFO 2o. All transfers of participations to public entities that under previous laws, decrees and conventions will continue to be in force, have been carried out by the departments and municipalities.

ARTICLE 12. Article 15 of Law 141 of 1994 will remain so:

ARTICLE 15. Use by the municipalities of the units established in this law. The resources of royalties and monetary compensation distributed to the producing municipalities and the port municipalities will have the following destination:

(a) In ninety percent (90%) investment in municipal development projects contained in the development plan with priority for those aimed at environmental sanitation and for those aimed at the construction and expansion of the structure of health, education, electricity, drinking water, sewerage and other essential basic public services, without prejudice to Article 132 of the Code of Mines (Decree-Law No 2655 of 1998);

(b) 10% (10%) for the financial controller and the implementation of projects to be implemented with these resources.

As long as municipal entities do not reach minimum coverage in the sectors indicated, they will allocate at least seventy-five percent (75%) of the total of their units for these purposes.

The annual budget will clearly separate the resources from royalties for the previous purposes.

The National Government will regulate the minimum coverage.

ARTICLE 13. Paragraph 1o. Article 29 of Law 141 of 1994, shall be as follows:

" The royalties and compensation caused by the transport of non-renewable natural resources or their derivatives, by the maritime ports of the Gulf of Morrosquillo in the departments of Cordoba and Sucre will be distributed within the next area of influence as follows:

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. Seventeen point five percent (17.5%) for the maritime port municipality of the department of Sucre where the non-renewable natural resources or their derivatives are transported.

Of this seventeen point five percent (17.5%) the third part will have to be invested within the area of influence of the port, in the Corregimiento of Covenas, which will be handled in separate account. Failure to comply with this mandate is a cause of misconduct, sanctioned with removal.

2. Three percent (3%) in equal form among the remaining maritime port municipalities of the department of Sucre in the Gulf of Morrosquillo.

3. The surplus to be completed by 50% (50%), i.e. the twenty-nine point five percent (29.5%) will be distributed among the other municipalities in the department of Sucre not covered by the above, nor large producers. mining, using the following weighting mechanisms:

Thirty percent (30%) will be distributed equally, among all the municipalities of the department, not referred to in the previous paragraph, nor producers of large mining.

40% (40%) of the same allocation will be distributed proportionally based on the population census of each beneficiary municipality.

The remaining 30% (30%) will be distributed 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 (030 + 0.4 PM + 0.3 PMNBI)

NoM PT 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 from municipalities to benefit

PMNBI = Township NBI Population

NoM = Number 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 or their derivatives are transported and the other maritime port municipalities of the department of Sucre in the Gulf of Morrosquillo. "

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

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

2. Nine percent (9%) in an egalitarian way among the other maritime port municipalities of the department of Cordoba in the Gulf of Morrosquillo.

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 them municipalities shall apply to the volumes transported by each of them.

The step-step established 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 deliver to them as a loans or advances. '

ARTICLE 14. Article 41 of Law 141, 1994, will be as follows:

" ARTICLE 41. Distribution of monetary compensation arising from the exploitation of nickel. The monetary compensation provided for in the contracts for the exploitation of nickel shall be distributed as follows:

Producers 42.0%

Municipalities or producer districts 2.0%

Municipalities or port districts 1.0%

Regional Autonomous Corporation in which

territory 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:

9.0% Liberator Port Municipality

Ayapel 8.0% municipality

Municipality of Planet Rica 8.0%

New Town Township 7.0%

Buenavista Municipality 5.0%

5.0% Parking Township

Total 42.0% "

ARTICLE 15. For the purposes of this law, they shall be understood as small mining projects, the following:

a) For metals and precious stones. When the total capacity of extraction of useful and sterile materials per year is up to two hundred and fifty thousand cubic meters (250,0003) If it is open pit mining, or up to eight thousand (8,000) tons if it is underground mining;

b) For coal. When the total capacity for extraction of useful and sterile materials per year is up to twenty-four thousand (24,000) tons of coal if it is open-pit mining, or up to thirty thousand (30,000) tons of coal if it is mining underground;

c) For building materials. When the total capacity of extraction of useful and sterile materials per year is up to ten thousand (10,000) cubic meters of material if it is open pit mining, or up to thirty thousand (30,000) tons of material if it is mining underground;

d) For other materials not included in the above literals: When the total capacity for extraction of useful and sterile materials per year is up to one hundred thousand (100,000) tons of material if it is open-pit mining, or up to Thirty thousand (30,000) tons of material if it is underground mining.

ARTICLE 16. Article 62 of Law 141 of 1994 is added to the following paragraph:

" Paragraph. For the purposes of this law, it will also be understood to promote mining, which is done through the transfer of resources from royalties, preferably for the projects of integration of small titles. mining, given their social, economic and environmental conditions; in order to make such projects, a sustainable mining. "

ARTICLE 17. Monto of the royalties. Article 16 of Law 141 of 1994 will be amended as follows:

" ARTICLE 16. Establish 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

tons per year) 10%

Coal (operating less than 3 million

tons 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%

Establish as a royalty for the exploitation of national-owned hydrocarbons on the value of the production in the well mouth, the percentage that results from applying the following scale:

Average Daily Production Month Percent

For production equal to or less than 5 KBPD 5%

For production greater than 5 KBPD and less than 125 KBPD

Where X = 5 + (production KBPD-5 KBPD) * (0.125)             X%

For production greater than 125 KBPD and less than 400 KBPD 20%

For production greater than 400 KBPD and less than 600 KBPD Y%

Where Y = 20 + (KBPD Production-400 KBPD) * (0.025)

For production equal to or 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 the royalties applicable to the exploitation of gaseous hydrocarbons, the following equivalence shall apply: for fields located on dry land and offshore at a depth of less than 1,000 feet, one (1) barrel of oil is equivalent to ten thousand (10,000) cubic feet of gas; for fields located offshore at a depth equal to or greater than one thousand (1,000) feet, one (1) barrel of oil is equivalent to twelve thousand five hundred (12,500) cubic feet of gas.

PARAGRAFO 2o. This rule will apply for all 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 be applied to incremental production from incremental production projects.

PARAGRAFO 4o. The second paragraph of article 16 of Law 141 of 1994, will remain as follows: From the percentage by royalties and compensations agreed in the current contract for the exploitation of the Nickel in Cerromatoso, Montelibano municipality, will apply the first four percent (4 percent) to royalties and the remaining four percent (4 percent) to compensation. For future contracts or carryovers, if any, the percentage of royalties set out in this article will be applied and distributed as follows: Seven per cent (7 per cent) per royalty and five per cent (5 per cent) remaining, to compensation.

PARAGRAFO 5o. The 3o paragraph. Article 16 of Law 141 of 1994, will be thus: " In the contract of association between Carbocol and Intercor, the legal regalia will be of fifteen percent (15%) in charge of the particular associate according to the stipulated for such a contract, which will be distributed as set out in article 32 of this law. In the event that the company Carbocol is liquidated, privatized 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 The five (5) first percentage numbers will be applied as royalties and will be distributed in the terms of Article 32 of Law 141 of 1994 and the five (5) percentage points. The remainder will be applied as compensation, which will be distributed as follows: 50% (50%) for the Regional Autonomous Corporation in whose territory the holdings are carried out and fifty percent (50%) for the administrative region of planning or the region as a territorial entity to which the respective department belongs.

While creating the administrative region of planning or the region as a territorial entity, the respective resources will be administered by the Regional Autonomous Corporation in whose territory the farms are carried out.

PARAGRAFO 6o. The tax stipulated in the contracts or licenses 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, concessionaire or exploiter.

PARAGRAFO 7o. In cases in which the integration of mining small mining titles is operated before 31 December 2010, the holders of such integration will be obliged to pay during the twenty-five years. (25) years after the date of the same, thirty per cent (30%) of the total percentage of royalties and compensation to which they are bound by this law.

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

ARTICLE 18. Article 49 of Law 141 of 1994 will remain so:

" ARTICLE 49. Limits to the participation in royalties and compensation from the exploitation of hydrocarbons in favor of the producer departments. To the shares in royalties and compensations arising from the exploitation of hydrocarbons in favour of the producer departments, without prejudice to the provisions of paragraph 2o. of Article 14 and in Article 31 of Law 141 of 1994, the following step shall apply:

Monthly Average Share on Your Percentage

of barrels/day departments

For the first 200,000 barrels 100%

Over 200,000 and up to 600,000 barrels 10%

Over 600,000 barrels 5%

PARAGRAFO 1o. When production is greater than two hundred thousand (200,000) barrels daily average monthly, the excess royalty and compensation resulting from the application of this article will be distributed as follows!: sixty and five percent (65%) for the National Royalty Fund and thirty-five percent (35%) to be used in accordance with the provisions of Article 54 of Law 141 of 1994.

PARAGRAFO 2o. The steps referred to in this Article shall apply for all contracts considered as new hydrocarbon discoveries in accordance with Article 2or. of Law 97 of 1993 or the rules which supplement, replace or repeal them, which are carried out after the date of enactment of Law 141 of 1994. "

ARTICLE 19. Article 50 of Law 141 of 1994 will remain so:

" ARTICLE 50. Limits to the participation in royalties and compensation from the exploitation of hydrocarbons in favor of the producing municipalities. To the shares in royalties and compensations arising from the exploitation of hydrocarbons in favour of the producing municipalities, without prejudice to the provisions of paragraph 2. of Article 14 and in Article 31 of Law 141 of 1994, the following step shall apply:

Monthly Average Barrels/Days Share on Percentage

of the municipalities

For the first 200,000 barrels 100%

Over 200,000 barrels 10%

PARAGRAFO 1o. For the application of 5or, 49 , and 50items, a barrel of oil equals 10,000 cubic feet of gas for fields located on dry land and offshore at a depth of less than one thousand feet and twelve thousand five hundred (12,500) cubic feet of gas for fields located offshore at a depth equal to or greater than a thousand (1,000) feet.

PARAGRAFO 2o. When production is greater than two hundred thousand (200,000) barrels per day, the excess royalty and compensation resulting from the application of this article will be distributed as follows: Forty percent (40%) for the National Royalty Fund and sixty percent (60%) to be used as set forth in article 55 of Law 141 of 1994.

PARAGRAFO 3o. The steps referred to in this Article shall not apply to contracts whose fields were declared commercial before the entry into force of the Political Constitution of 1991. "

ARTICLE 20. Article 17 of Law 141 of 1994 will remain so:

" ARTICLE 17. Royalties corresponding to emeralds and other precious stones. The royalties for the exploitation of precious stones shall be one point five per cent (1.5%) of the value of the exploited material, shall be settled by the Ministry of Mines and Energy, or by the entity designated by it and declared and pay directly to the municipality of the respective producer municipality.

The royalties corresponding to the emeralds and other precious stones that have been exploited outside the State concessionaires will be four percent (4 percent) and will be declared and paid directly at the city's mayor's office. respective producer municipality ".

ARTICLE 21. Regional projects will be those that benefit groups of municipalities in different departments or in the same department.

PARAGRAFO. The National Royalty Commission according to the article 1or. number 2 of Law 141 of 1994, in order to control and monitor the correct use of royalties and compensation in the terms of Articles 14 and 15 of the This law may provide for the hiring of financial and administrative, public and/or private financial controllers to monitor the use of royalty and compensation partitions from the respective territorial entities. The value of these contracts may not exceed one per cent (1%) of these resources.

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

ARTICLE 22. Article 35 of the fourth chapter of Law 141 of 1994 will remain so:

" Distribution of royalties derived from the exploitation of emeralds and other precious stones.

Boyaca Department 10%

Department of Cundinamarca 20%

Muzo Township 6%

Quipama municipality 6%

San Pablo de Borbur municipality 6%

Maripi Township 6%

Pause 5% Municipality

Buena Vista Municipality 2%

Otanche Municipality 6%

Coper Township 2%

Briceno Township 2%

Tunungua Municipality 2%

La Victoria Municipality 2%

Chivor Municipality 8%

Ubala Township 2%

Gachala Municipality 2%

Macanal Township 2%

Almeida Municipality 2%

Somondoco Municipality 2%

Chiquinquira municipality 2%

National Royalty Fund 5%

100% Total

ARTICLE 23. Article 43 of Chapter IV of Law 141, 1994, will be as follows:

" Distribution of monetary compensation derived from the exploitation of emeralds. Monetary compensation arising from the exploitation of the emerald shall be distributed as follows:

Boyaca Department 10%

Department of Cundinamarca 20%

Muzo Township 7%

Quipama Municipality 7%

San Pablo de Borbur Municipality 7%

Maripi Municipality 7%

Pause 5% Municipality

Buena Vista Municipality 2%

Otanche Municipality 5%

Coper Township 2%

Briceno Township 2%

Tunungua Municipality 2%

La Victoria Municipality 2%

Chivor Municipality 7%

Ubala Township 2%

Gachala Municipality 2%

Macanal Township 2%

Almeida Municipality 2%

Somondoco Municipality 2%

Chiquinquira municipality 2%

Minercol 3%

100% Total

ARTICLE 24. This law governs from its enactment and repeals all provisions that are contrary to it.

MARIO URIBE ESCOBAR

The President of the honorable Senate of the Republic

MANUEL ENRIQUEZ ROSERO

The Secretary General of the honorable Senate of the Republic

BASILIO VILLAMIZAR TRUJILLO

The President of the honorable House of Representatives,

ANGELINO LIZANO RIVERA

The Secretary General of the Honourable House of Representatives

COLOMBIA-NATIONAL GOVERNMENT

PUBLISH AND EXECUTE

Dada in Bogotá, D. C., on October 20, 2000.

ANDRES PASTRANA ARANGO

JUAN MANUEL SANTOS CALDERÓN

The Minister of Finance and Public Credit

CARLOS CABALLERO ARGAEZ

The Minister of Mines and Energy