Law 34/1998, Of October 7, The Hydrocarbon Sector.

Original Language Title: Ley 34/1998, de 7 de octubre, del sector de hidrocarburos.

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JUAN CARLOS I King of Spain to all that the present join together and act.

Know: That the Cortes Generales have approved and I come in to sanction the following law.

EXHIBITION grounds, this law aims to renew, integrate and homogenize the different current legal regulations in the field of hydrocarbons. It aims, therefore get a more open regulation, in which public authorities safeguard the general interests through the own rules, limiting its direct intervention in the markets when there are emergencies. This regulation should also allow free business initiative to expand its field of action and the introduction in our legal system of technical and commercial realities socially assumed, but lacking at this time, of adequate reserve requirements. Also parallel to this opening of the legislation it must be deepened in the mechanisms of the information detailed by the agents of the market to the competent authorities, to enable the realization of the attainment of the objectives proposed the liberalization of the markets.

This law aims to provide a treatment integrated into a vertically articulated industry. From the production of hydrocarbons in an underground site to use in the engine of a car, a home heating or an industrial process, occur or may occur a series of economic transactions and physical processes of transformation, treatment or simply transport which deserve a global consideration, since they are part of an economic activity that , although segmentable, responds to an integrated approach. This integration should facilitate a balanced treatment of the various activities regulated by this law and allow to keep a substantial homogeneity in the way of tackling similar problems.

The above is added to the concern of the law by the introduction of environmental protection criteria that will be present in the activities object of it, from the moment of its planning. So therefore intends to reflect the need to preserve and restore the environment as a prerequisite for improving the quality of life.

The first block of material that deals with law is the exploration, investigation and exploitation of hydrocarbons which have come to be regulated by law 21/1974, 27 June. The main innovations contained in this law are its relevance to the constitutional system, the removal of the reservation on behalf of the State, the regulation of underground storage, the creation of the figure of the operator and, finally, the emphasis on the obligations of decommissioning of installations that dealers should assume. While the constitutional adequacy is a need that is self-explanatory, the removal of the reservation on behalf of the State responds to the need to set up such a State as a regulator and not as executor of a certain industrial activities. This is not without prejudice so that, if the State deems it appropriate, to promote research in a particular area through the call of the corresponding competitions. Both underground storage and the figure of the operator are novelties that are incorporated into our legal system from the observation of the reality. The underground, lacking stores regulation, constitute a fundamental nucleus of the security of the natural gas system as other types of hydrocarbons. As for the operator, it is the entity that acts as responsible for the administration of all activities developed in the field of research and exploitation of hydrocarbons when there is shared ownership.

Oil refining and the transport, storage, distribution and marketing of petroleum products are regulated from a perspective of further liberalization, abolishing pre-existing authorization for the exercise of the activity by the mere authorization of facilities affected to an activity that requires special attention by the nature of the products handled. Only, as an exception, the authorization of activity is maintained for operators to the wholesale, where the whole of the market of liquid hydrocarbons, are responsible for the maintenance of minimum stocks of safety, basic warranty of the system.

The supply of liquefied gas as oil also receives the liberalizing impulse that this law is to extend to all the hydrocarbon sector. Requirements for the exercise of activities among which the abolition of mandatory distribution at home shall be deleted perhaps constitute the most relevant example.

The regulation of the gas sector comes forward in the liberalisation of the sector and pick up the advances made in our country in this industry since the enactment in 1987 of the law on basic provisions for a coordinated development of actions of gaseous fuels, making it compatible with a homogeneous and coherent development of the gas throughout the national system.

On the basis of the homogeneity already alluded to as a criterion that presides over this standard intends to also keep the homogeneity in the basic approach to the system of natural gas in relation to the electrical system. It is in both cases of supplies that require physical connection between producers and consumers. Having no economic sense the duplicity of these interconnections, the owner of the network is configured as a monopoly of the supply. The separation between the ownership of transport infrastructure and the service provided by the infrastructure and the escalation in this process of separation are the two tools that, like the Law 54/1997, of 27 November, in the electricity sector, this law used to transform the landscape of the industry of natural gas.

However, this law collects other technical possibilities of supply from gaseous fuels other than natural gas, within which, by its incidence, noteworthy supplies of liquefied petroleum gas by pipeline.

In addition, although this law is explicit in the intention to liberalize total or partially the prices of the transactions of the combustible gases by channeling and especially those concerning natural gas when there is sufficient market signals making it possible, expected that there is a specific for these goods economic regime, so that they are protected, from the first moment the interests both of consumers and of future producers with regard to any situation of market power.

It is also necessary to deal with three generic aspects of the Act posed a certain novelty in our law: consideration of public service shall be deleted in the gas sector. It is estimated that all the activities regulated by this law do not require the presence and responsibility of the State for its development. However, consideration of activities of general interest already collecting the law 34/1992, of 22 December, management of the oil sector has remained for all of them.

In contrast to the electric sector, whose supplies are considered to be of an essential nature, supplies of the hydrocarbon sector have a particular importance for the development of economic life, which means that the State must ensure its security and continuity and justifies the obligations of maintenance of minimum stocks of petroleum products and gas security.

It is necessary to also make reference to the National Committee on energy that is created in this law. The linkage and interdependence of the sectors of energy, the similar problems of some of them, especially, as noted, natural gas and electricity, and the progressive business relationship in this economic field recommended attributed to a single body the regulation and monitoring of the energy market, to ensure its transparency and properly coordinate the criteria for resolving issues you know.

Finally, should clarify competences distribution criteria followed with this standard, being declared basic in those precepts that so require. Article 149.1. 25th attributes to the State competition to dictate the bases of the regime of mining and energy, forecast that is completed at the Executive level with number 22 of the same article which assigns to the State competition on energy transportation infrastructure when they leave the territory of an autonomous community. Added to this, is the jurisprudence of the Constitutional Court in the material field that concerns us, especially the 24/1985, of 21 February sentence, and the more recent judgment 197/1996, 28 November. In both judgments are based on a delimitation of competence based on consideration of how single market of hydrocarbons, which inevitably has to be projected, as a unit. This forces separate from the criterion of territoriality and for each facility to determine its impact on a global market. This law respects the powers of the autonomous communities in relation to the distribution of hydrocarbons and makes them sharers in more general aspects of planning and management of the sector.

Title I General provisions article 1. Object and scope of the law.

1. the present law is to regulate the status of activities related to liquid and gaseous hydrocarbons.


2 are included in the scope of application of this law the following activities: to) exploration, research and exploitation of sites and underground storage of hydrocarbons.

(b) foreign trade, refining, transportation, storage and distribution of crude oil and petroleum products including liquefied petroleum gases.

(c) the acquisition, production, liquefaction, regasification, transport, storage, distribution and marketing of gaseous fuels by pipeline.

3. activities aimed at the supply of liquid and gaseous hydrocarbons shall be exercised under the principles of objectivity, transparency and free competition.

Article 2. Regime of activities.

1. for the purposes of article 132.2 of the Constitution they will have consideration of State public property, deposits of hydrocarbons and underground stores existing in the territory of the State and the subsoil of the territorial sea and seabed that are under the sovereignty of the Kingdom of Spain in accordance with the legislation in force and the conventions and international treaties which is part.

2 recognizes the free business initiative for the pursuit of the activities referred to in titles III and IV of this Act.

These activities shall be exercised guaranteeing the supply of petroleum products and gas by pipeline to consumer plaintiffs within the national territory and shall be regarded as activities of general economic interest. With respect to such activities, the public administrations shall exercise the powers provided for in this Act.

Article 3. Administrative skills.

1 corresponds to the Government, in the terms established in this law: to) exercise the powers of planning in terms of hydrocarbons.

(b) establish the basic regulation corresponding to the activities referred to in this law.

(c) determine the tolls for the use of facilities affected the right of access by third parties in cases where this law so establishes it and fix the types and prices of supply.

(d) establish the minimum requirements for quality and safety that govern the supply of hydrocarbons.

(2 corresponds to the General Administration of the State, in the terms established in the present law: a) grant exploration authorizations and permits for research referred to in title II, when it affects the territory of more than one autonomous community. In addition, granting concessions of exploitation referred to in the aforementioned title of this law.

(b) grant authorisations for exploration, research permits and concessions of exploitation in the areas of marine subsoil referred to in title II of this law. In addition, grant authorisations for exploration and research when its scope at the same time understand land areas and permits the marine subsoil.

(c) authorize facilities that make up the basic network of natural gas, as well as those other facilities referred to in this Act where its use affects more than one autonomous region or in the case of transportation or distribution facilities when they leave the territory of one of them.

(d) empower marketers of natural gas when its scope is to overcome the territory of an autonomous community.

(e) authorize the activity of operators to the wholesale of petroleum products and liquefied petroleum gases.

(f) provide, in the sphere of its competence, instructions relating to enlargement, improvement and adaptation of the infrastructures of transport and distribution of hydrocarbons in an adequate quality assurance and security in energy supply.

(g) inspect, in the sphere of its competence, compliance with the technical conditions and, where appropriate, economic, that are enforceable.

(h) inspecting the maintenance of minimum stocks of operators safety compliance to the wholesale resulting obliged.

(i) in accordance with the law, punish the Commission of offences established under this law in the field of their competence.

3 corresponds to the autonomous communities in the field of their respective competencies: to) legislative development and implementation of the basic legislation in the field of hydrocarbons.

(b) planning in coordination with the one made by the Government.

(c) granting of exploration permits and permits research referred to in title II of this law, when it affects its territorial scope.

(d) authorize those facilities whose use does not affect other communities or transport or distribution does not leave its territorial scope.

(e) empower marketers of natural gas when its scope will be limited to an autonomous region.

(f) provide instructions on the expansion, improvement and adaptation of the facilities of transport and distribution of hydrocarbons that are within its competence.

(g) inspect, in the field of facilities within its competence, the technical, environmental and, in appropriate conditions, economic of the companies of these facilities.

(h) inspecting the maintenance of minimum security stocks where such maintenance correspond to distributors at the retail or consumer located in its territory.

(i) in accordance with the law, punish the Commission of offences within the scope of their competence.

4. the General Administration of the State may conclude cooperation agreements with the autonomous communities to achieve more effective management of administrative actions related to the facilities referred to in this law.

Article 4. Planning in the field of hydrocarbons.

1. the planning of hydrocarbons will be indicative, except in regards to the pipelines of the basic network of strategic stocks of oil storage facilities and the definition of general criteria for the establishment of facilities for supply of petroleum products to the retail taking in these cases mandatory and enforceable minimum for assurance of supply of hydrocarbons.

2. the planning of hydrocarbons will be carried out by the Government with the participation of the autonomous communities and will be presented to the Congress of Deputies.

3 such planning shall relate to at least the following aspects: to) forecasting the demand for products derived from oil and natural gas over the referred period.

(b) estimate of supplies of petroleum products required to meet the expected demand under the criteria of quality, security of supply, energy diversification, efficiency and protection of the environment.

(c) provisions relating to the facilities of transport and storage of petroleum products in accordance with your demand forecasting, with special attention to the strategic stocks storage facilities.

d) forecasts of development of the basic natural gas transportation network, in order to meet the demand with gas in the entire country infrastructure optimization criteria.

(e) definition of the areas of priority gasification, expansion of networks and stages of its implementation, in order to ensure a homogeneous development of the gas throughout the national system.

(f) provisions relating to facilities of transport and storage of gaseous fuels, as well as receiving and regasification of liquefied natural gas plants, in order to ensure the stability of the system, gas and the regularity and continuity of supplies of fuel gases.

(g) establishing general criteria to determine a minimum supply of petroleum products to the retail depending on the density, distribution and characteristics of the population and, in his case, the density of vehicles.

(h) the criteria for environmental protection that should inform the activities subject to this law.

Article 5. Coordination with planning and road infrastructure.

1. the planning of transport of storage of strategic stocks of oil and gas, as well as the general criteria for the location of supply of petroleum products to the retail, shall be taken into account in the corresponding instrument of management of the territory, urban planning or planning of road infrastructure as appropriate, pointing out possible facilities properly qualifying land and establishing the necessary ground reserves for the location of the new facilities and the protection of the existing.

The planning of facilities referred to in the letter g) number 3 of article 4 also will be taken into consideration in the planning of roads.

2. in cases in which is has taken no account the planning of these facilities in management or planning instruments described in the preceding paragraph, or when justified reasons of urgency or exceptional interest for the supply of petroleum products or natural gas warrant the establishment of them, and whenever an instrument of land use planning is mandatory pursuant to provisions of other laws or planning according to the kind of soil affected, it shall apply provisions of the law on status of soil and land-use planning which applies.

Article 6. Other authorizations.


1. authorizations, permits and concessions subject to this law it will be without prejudice to those other authorizations that works, buildings and installations necessary for the development object of them may be required for fiscal reasons, management of the territory and urban planning, protection of the environment, protection of marine living resources, demand for the corresponding sectoral legislation or security for persons and property.

2. in relation to the safety and quality industrial technical elements and materials for installations subject to this Act, it shall apply provisions of law 21/1992, of July 16, industry, and other applicable provisions in the matter.

3. when works, buildings and facilities subject to this law are located or have to be carried out within the areas and facilities of interest to national defense, require authorization from the Ministry of defence, in accordance with the provisions of the law 8/1975 of March 12, areas and facilities of interest to national defense, and its implementing regulations.

Title II exploration, investigation and exploitation of hydrocarbons chapter I provisions general article 7. Activities subject to regulation.

This title establishes the legal regime of: to) exploration, research and exploitation of deposits of hydrocarbons.

(b) exploration, research and exploitation of underground storages for hydrocarbons.

(c) the activities of transport, storage and handling industrial obtained hydrocarbons, when they are carried out by the researchers or exploiters of fashion accessory and ancillary facilities to the production.

Article 8. Holders.

1. public or private legal persons may perform any of the activities referred to in this title, by obtaining the corresponding authorizations, permits and concessions.

Authorizations, permits and concessions referred to in this article shall be granted in accordance with the principles of objectivity, transparency and non-discrimination.

2 research permits and concessions of exploitation only may be granted, individually or in shared ownership, public or private legal persons showing their technical and financial capacity to carry out the research and, where appropriate, of exploitation of the chosen areas.

3. in the case of shared ownership of research permits or concessions of exploitation, the set of holders shall designate one of them as the operator, without prejudice to the joint and several liability against the administration by all obligations arising out of them.

The operator shall be the representative of the holders set before the Administration for the purpose of submission of documentation, management of guarantees and technical responsibilities of the work of prospecting, evaluation and exploitation.

Article 9. Status of activities.

1. the authorization of exploration empowers its holder to carry out exploration works in free areas, understanding as such geographical areas on which there is a research permit or a concession of exploitation in force.

2. the research permit empowers its holder to investigate, exclusively, in the given area, the existence of hydrocarbons and underground storages for them, under the conditions laid down in this title. The granting of a permit for research gives the holder the right to obtain concessions of exploitation, at any time of the period of validity of the permit, prior compliance with the conditions referred to in chapter III of this title.

3. the granting of exploitation empowers its holder to carry out the exploitation of the resources discovered, either by extraction of hydrocarbons, or by the use of structures as underground storage of any of those in the given area.

The holder of a concession for the exploitation shall be entitled to the relevant authorisations for construction and use of the facilities that are necessary for the development of their activity, provided that they conform to the legislation in force and the exploitation plan previously submitted.

Article 10. Investment by non-nationals.

For the purposes of this title the capital investment by legal persons domiciled abroad is free, and must conform to the provisions in the current regulations on foreign investment.

Article 11. Transferability of research permits and concessions of exploitation.

Total or partial transmission of research permits and concessions of exploitation, as well as cooperation agreements the owners thereof carried out for the development of its activities, shall be subject to authorization by the competent authority prior accreditation of the requirements to be the holder thereof.

Article 12. Obligation of information.

1. holders of authorizations of exploration, research permits and concessions of exploitation shall be obliged to provide to the competent body that had given them information requested you regarding the characteristics of the site and works, productions and investments which perform, as well as geological and geophysical reports concerning their authorizations, permits and concessions, as well as other information to be determined by regulation.

2. the information provided shall be regarded as confidential and may not be disclosed to third parties without the express permission of the owner during the term of the permit research or the granting of exploitation.

This confidentiality except data relating to other than the regulated mineral resources by this law and general informations technical or susceptible to statistical exploitation which may periodically make public the Ministry of industry and energy or the competent body of the autonomous community, in the form determined by law.

In the course of exploration permits, the confidential nature will remain during the period of five years from the date of completion of the field work.

3. all information and technical documentation generated by prospecting programs in authorization of exploration, research permits and concessions of exploitation must be forwarded to the competent authority which granted them.

4. the autonomous communities shall send at the same time information on exploration authorizations and permits research that had been granted, as well as information and technical documentation, to which paragraph 3 of this article refers, that it will be incorporated into the special technical file.

Chapter II article 13 research and exploration. Free activities.

The terrestrial surface exploration of mere geological character may be freely throughout the national territory.

Article 14. Exploration authorizations.

1. the Ministry of industry and energy, or the competent body of the autonomous region when it affects its territorial scope, may be authorized in areas free exploration of geophysical character or others that do not involve the execution of deep drilling defined thus by regulation.

2 exploration permits applicants must prove the following the terms to be established in the relevant regulations of development: to) legal, technical and financial capacity of the applicant.

(b) exploration program, with an indication of the techniques to use and environmental protection measures.

(c) situation of the places where it will be to undertake the exploration plan.

3. in no case shall be authorised these explorations with nature of monopoly or create exclusive rights.

Article 15. Research permits.

1. the research permits will be awarded by the Government or by the organs of Government of the autonomous communities does affect its territorial scope and shall confer the exclusive right to investigate the areas to be concerned for a period of six years.

In exceptional cases, this period may be extended, at the request of the person concerned, for a period of three years. The granting of extension will result in the reduction of the original surface of the permit in a 50 by 100 and will be conditioned on compliance by the permit holder's obligations for the first period of validity.

2. the surfaces of research permits will have a minimum of 10,000 hectares and a maximum of 100,000 hectares.

3. the surfaces of permits shall be defined by geographic coordinates, admitting in each research permit deviations up to 4 per 100 of the maximum limits.

Article 16. Application and registration.

1. the research permit will be requested to the Ministry of industry and energy, or to the corresponding authority of the autonomous region when it affects its territorial scope. In the aforementioned Ministry shall be a public record special, without prejudice to the possible territorial records, which shall contain the identity of the applicant, the date, the number of order which has corresponded to the request and other circumstances.

Regulations will establish the procedure for notification to the register of information related to research permits granted by the autonomous communities.


2 the applicant for permission to research must demonstrate before the competent authority the following ends in the terms that are available in each regulation development: to) legal, technical and financial capacity of the applicant.

(b) surface of the research permit which shall be defined by their geographic coordinates.

(c) research project, which includes the annual work plan, the investment plan, environmental protection measures and the restoration plan suited to the proposed work plan.

(d) supporting shelter have entered the guarantee referred to in article 21 of this law.

Article 17. Offers in competition.

1 within thirty days following the entry into the corresponding registration of the application, the competent authority shall determine that if the applicant meets the requirements of this title.

2. in the event that the applicant does not meet these requirements, the application shall be refused. If you meet them, be ordered the publication in the «Official Gazette» or the «Bulletin official of the autonomous region» of the specifications outlined in article 16 of this law, and an ad in the form established the regulations that develop this title, so that within the period of two months may submit tenders in competition or can formulate opposition who consider the requested permission to invade another or any exploitation of hydrocarbons, current or pending award. You can also claim, by way of opposition, the concurrence of any of the restrictive circumstances detailed in this title.

This procedure shall not apply to the excesses that each administration may be freely granted in favour of permit holders of research surrounding its implementing regulations established.

3. Once posted the request in the «Official Gazette» or the «Bulletin official of the autonomous region», the authorisation holder and those who submit offers in competition may submit, within the period of two months, a sealed statement containing a proposal for the improvement of the conditions offered, and that only will be opened once finished the indicated term.

4 after the period of two months will not be accepted new applications on the same surface as justifiably resolution.

Article 18. Procedure.

1. shall be governed by regulation the procedure for the allocation, the form for submission of tenders and the minimum investments in each period.

2. the resolution on the granting of permission to research will be adopted by Royal Decree or in the way that each autonomous community set to the corresponding to its territorial scope, and must expressly resolve any objections that have been formulated.

3. in the resolution of granting minimum work which should be recipients of permits, including environmental protection efforts, until their extinction or the renunciation of them shall be fixed.

Article 19. Concurrent requests.

En_caso_de concurrence of two or more applications on the same area, the competent authority, on the basis of the territorial area, will solve weighing together as causes of preference the following circumstances: to) greater amount of investment and speed of implementation of the investment program.

(b) greater technical and financial capacity to carry out the proposed exploratory programme.

(c) ownership of a permit or permits bordering.

(d) the date of submission of applications priority.

Article 20. Competition for unvested areas.

The Council of Ministers, on a proposal from the Minister of industry and energy, or the organs of Government of the autonomous communities, may be in the scope of their powers, when they deem it to be necessary to get the deal that best suits the public interest, to open competition on certain areas not granted or in processing by notice published in the «Official Gazette» or the «Bulletin official of the autonomous region» awarding them the contestant that meet the requirements, offer the best conditions.

Article 21. Warranty.

1. the warranty required by article 16 shall be fixed according to the plan of investments and the restoration plan presented by the applicant and will respond to the compliance with tax obligations, Social Security and restoration, as well as the payment of fines and penalties.

2. the guarantee that should be in favour of the corresponding Administration consist of some of those provided for in article 3 of the regulation of the General box of deposits, approved by the Royal Decree 161/1997, 7 February, or autonomic norm which, if necessary, appropriate.

3. the value of the required guarantee shall be fixed by law and will be updated on a regular basis for new permits and concessions granted, mainly considering the values of market operations in the sector.

4. the owner or the operator of each permit research or exploitation concession will be responsible for filing and maintenance, to the Ministry of industry and energy or the corresponding body of the autonomous community, in the permissions of its territorial scope, 100 per 100 of the warranty.

5. in case of refusal or permission or extinction of the renunciation, provided that the holder has fulfilled its obligations, the deposit will be returned to the person concerned or the warranty left without effect on deadlines to be determined according to the rules.

6. in the event that runs totally or partially the warranty for breach of the obligations referred to in paragraph 1 of this article, the owner will be forced to replace it within the time limit which is designated in the regulations and in the event of failure to comply with permit will be cancelled.

Article 22. Development of tasks and jobs.

1. the holder of a research permit shall be required to develop, in any case, the programme of work, recognition works and investments within the time limits specified in the resolutions of the competent authority granting.

2. exceptionally, and in cases of force majeure, the competent body may modify the deadlines referred to in paragraph 1 of this article, the work programme and investment plan, and even transfer permissions investment plan obligations to others, previous waiver of the first and provided that they are of a same owner and had been issued by the same competent authority.

3. the holder of a licence of research which discovered hydrocarbons will be obliged to report this to the administration which had granted permission of research and, in any case, the Ministry of industry and energy, and will use them to the extent that require own research operations and in any of the areas that have been or are awarded to you.

Article 23. Concurrence of mining rights.

1 May to grant permissions of research of oil even in cases in which on the whole or part of the same area there are other mining rights granted in accordance with the legislation which applies.

2. the granting of permits for research pursuant to this law will not prevent the attribution on the same areas of authorisations, permits or concessions relating to other mineral deposits and other geological resources.

3. regulations shall be determined the mode of solving any incidents that may arise because research permits or concessions of exploitation of hydrocarbons and other mineral substances and other geological resources in an area. Where tasks are incompatible, definitively or temporarily, the Ministry of industry and energy or the competent body of the autonomous community, if both activities are to develop within its territorial scope, shall decide on the substance or resource which is of greatest interest. Holder who is granted priority shall pay unto him who is it denied compensation which applicable for damages caused you. If incompatibility is temporary, suspended tasks can resume is missing after that.

Chapter III operation article 24. Concession for the exploitation of sites and underground storage.

1. the granting of exploitation gives holders the right to perform exclusively the exploitation of the site of hydrocarbons in the areas granted for a period of 30 years, renewable for two successive periods of ten, when the activity carried out by the owner is the exploitation of deposits of hydrocarbons.

An exploitation concession holders shall have the right to continue research activities in these areas and to the obtaining of authorizations for activities provided for in this title.

2. holders of a concession for the exploitation may freely sell the hydrocarbons obtained subjects authorized for its acquisition and treatment in accordance with the provisions of this law.

3. the granting of exploitation gives owners the right to exclusive store hydrocarbons of own production or property of third parties in the basement of the given area and shall be granted for a period of fifty years, renewable for two successive periods of ten years, when the activity carried out by the owner is the storage of hydrocarbons.

4. in those cases in which an exploitation concession holders stored hydrocarbons in a reservoir, which is or has been a producer of hydrocarbons, the duration of such award shall be up to ninety -nine years.


Article 25. Request for an exploitation concession.

1. concessions of exploitation may only be requested by the permit holders of research on the same areas of these and will be resolved by the General Administration of the State within a period of three months.

2 the holder of the research permit, on the terms established by law, must certify to the Ministry of industry and energy the following ends: to) location, extension and technical data of the granting of exploitation that would justify its request.

(b) general operating plan, investment, a study of environmental impact and, where appropriate, programme estimate of recoverable reserves and production profile.

(c) plan of dismantling and abandonment of facilities after the operation, as well as recovery of the environment.

(d) supporting shelter have entered the guarantee in the General deposit box.

3. the Government shall authorize, report of the autonomous community concerned, the granting of the concession of exploitation by Royal Decree. The Royal Decree shall determine the bases of the proposed operating plan, the liability insurance which shall obligatorily be signed by the holder of the concession and the economic provision of dismantling. When reasons of general interest warrant the operating plan may be modified by Royal Decree, following a report in the affected region.

Notwithstanding the provisions of the preceding paragraph, when the exploitation concession relates to underground natural gas storage which, by its nature, does not have the status of strategic storages, the authorization of the Government shall be prior favourable report from the affected region.

4. the licensee shall submit to the Ministry of industry and energy, three months before the beginning of each calendar year, an annual plan of work shall be subject to the plan of operation in force.

5. If you limit expires the deadline for a research permit before being granted the requested exploitation concession, that means extended to award record resolution.

Article 26. Surface affects and does not affect an exploitation concession.

1. surfaces that are the object of exploitation concession will have the form requesting the petitioner, but shall be defined by the Group of quadrilaterals in one minute of side, coinciding with whole minutes of latitude and longitude, town houses at least one side.

2. the surface of a concession for the exploitation will be adapted to the minimum dimensions which are necessary for their protection.

3. the part of the surface affects to a research which is not covered by concessions of exploitation granted permission will be declared open and accessible.

Article 27. Conditions and warranty.

1. grantees in their work of exploitation shall comply with the conditions and technical requirements to be determined by regulation.

2. the warranty required by article 16 of this law shall be fixed on the basis of the investment programme presented by the applicant and will respond to the fulfillment of tax obligations, Social Security, of dismantling and recovery of fines that they proceed in accordance with the penalties provided for in Title VI.

3. the guarantee of the research permit may adapt to the enforceable for the granting of exploitation, in the terms established by law.

Article 28. Extension of concessions of exploitation.

1. extensions of exploration of sites and underground storage, in accordance with the provisions of article 24 of this law, as requested to the authority that has granted the award for which the extension is requested.

2. the extension will be granted provided that the holder has fulfilled the obligations committed in the previous period and keep its activity in accordance with its operating plan.

Article 29. Reversal of facilities.

1. the cancellation or termination of a grant of exploitation will lead to his immediate reversion to the State which may require the holder the decommissioning of installations of exploitation.

In the event of not requested the dismantling revert for free to State wells, permanent equipment exploitation and conservation of those and any stable work works incorporated permanently into the work of exploitation.

2. the directors may authorize the holder of a concession for the exploitation and application of this, the use of the facilities of any kind and stable works located within the concession for exploitation and incorporated permanently into the work of exploitation and that, pursuant to this article, revert to the State, if at the time of reversal they were using for exploration or research of the same proprietor permissions service , under the conditions established by law.

3. when an exploitation concession is extinguished by the expiration of his term and is the subject of competition for further adjudication, you will have preference to acquire it, on equal terms, revenue dealer.

Chapter IV jurisdiction article 30 and the authority. Jurisdiction.

Holders of authorizations of exploration, research permits or concessions of exploitation shall be submitted in many issues arise in relation to the same laws and Spanish courts.

Article 31. Administrative inspection.

1. the Ministry of industry and energy, or the competent body of the autonomous region permits research that gives when it affects its territorial scope, may, at any time, inspect all work and activities regulated in this title, to verify the fulfilment of the obligations that are enforceable holders.

2. the Ministry of industry and energy, or the competent body of the autonomous community in the authorizations and permits research that gives when it affects its territorial scope, may request the submission by holders of permits and concessions of the annual accounts, and may be required that the accounts are properly audited, as well as the practice of supplementary audits on those ends that are considered necessary activity of exploitation of hydrocarbons in national territory of the company concerned.

Article 32. Activities in the marine subsoil.

Activities subject to this title in the subsoil of the territorial sea and other seabed that are under national sovereignty shall be governed by this law, by the legislation of coasts, territorial sea, exclusive economic zone and continental, and Platform for the international agreements and conventions which the Kingdom of Spain is a party.

When the scope of these activities at the same time understand land areas of a single autonomous community and the marine subsoil is required to report in advance of the autonomous community concerned.

Chapter V of the voidability, expiration and extinction article 33. Voidability of authorizations, permits and concessions.

1. authorizations, permits and concessions referred to in this title shall be null when it was granted contrary to the provisions of this law.

2. permissions and concessions that overlap other already granted shall be null. The annulment will only affect superimposed extension when it is in the rest of the permit or concession area sufficient to ensure compliance with the conditions prescribed in this title.

Article 34. Extinction.

1 authorizations, permits and concessions regulated under this title shall lapse: a) for breach of the conditions of their granting.

(b) for revocation upon expiration of their terms.

(c) by waiver of total or partially the owner, once fulfilled the conditions in which they were granted.

(d) by the dissolution or liquidation of the holder company.

(e) for any other reasons established by laws.

2. to extinguish a permit or concession warranty or the part thereof which corresponds in the case of partial extinction, unless appropriate execution in accordance with article 21 of this law will be returned to its owner.

3. when an exploitation concession is extinguished by the expiration of his term and is the subject of competition for further adjudication, you will have preference to acquire it, on equal terms, revenue dealer.

Article 35. Paralysis of the record.

1. where for reasons imputable to the applicant is paralyze processing a case, the competent authority shall inform him that after three months, will be the revocation of the same, and where it is a permit research or exploitation concession, as their extensions, the owner will lose in favour of the competent authority the bond or security deposited.

2 when the suspension agreed for reasons not imputable to the holder, permit or concession shall be extended by the duration of that period.

Article 36. General regulations.

Provisions of this chapter refers to without prejudice in General in the law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure, and provisions that they develop it.

Title III management of the market of products derived from oil CAPI9TULO I General provisions article 37. Scheme for activity.


1. the refining of crude oil, transport, storage, distribution and sale of petroleum products including liquefied petroleum gases, can be carried out freely in the terms provided in this law, without prejudice to the obligations arising from other provisions of the relevant sectoral legislation and, in particular, of the prosecutors, those relating to the management of the territory and the environment and protection of consumers and users.

2. the activities of import, export and intra-Community Exchange of crude oil and petroleum products will be no more requirements than those arising from the application of the Community rules, without prejudice to the applicable tax legislation.

Article 38. Prices.

Prices of petroleum products will be free.

Chapter II article 39 liquid hydrocarbons. Refining.

1. the construction, putting into operation or closure of refining facilities, shall be subject to the system of prior administrative authorisation in the terms established in this law and its development provisions.

The administrative authorisation of a refining facility closure may impose on its holder the obligation to proceed to its dismantling.

Transmission or substantial modification of these facilities must be communicated to the awarding authority of the original authorization.

2 for obtaining such authorisation, applicants must prove the following: a) the safety of the proposed facilities and technical conditions.

(b) the proper fulfilment of the conditions of protection of the environment.

(c) the appropriateness of the location of the installation to the land use planning scheme.

3. the authorizations referred to in this article shall be regulated nature and shall be granted by the Ministry of industry and energy, in accordance with the principles of objectivity, transparency and non-discrimination.

Article 40. Transport and storage.

1. the construction and operation of facilities for transport or storage of petroleum products, when the latter relate to provide service to operators referred to in article 42 of this law, shall be subject to the system of prior administrative authorisation in the terms established in this law and its development provisions.

Transmission or closure of these facilities shall be communicated to the awarding authority of the original authorization.

2 applicants for permission to transport facilities or petroleum products storage parks must prove the following: a) the safety of the proposed facilities and technical conditions.

(b) the proper fulfilment of the conditions of protection of the environment.

(c) the appropriateness of the location of the installation to the system of management of territory.

3. the authorizations referred to in this article shall be regulated nature and shall be granted by the competent authority, in accordance with the principles of objectivity, transparency and non-discrimination, taking into account the criteria of planning resulting from article 4 of this law.

Article 41. Third-party access to transport and storage facilities.

1. holders of fixed installations for storage and transportation of petroleum products, authorized pursuant to article 40 of this law, shall permit access by third parties by means of a negotiated procedure, on non-discriminatory, transparent and objective economic and technical conditions, applying prices that should be made public. However, the Government may establish tolls for access to island Territories and those areas of the country where there are no alternative transport infrastructures and storage or are deemed insufficient.

By law, the procedure of communication to the National Energy Commission of the conflicts that may arise in the negotiation of contracts for access to transport or storage facilities will be established.

2. when the applicant's access has the obligation of maintenance of minimum stocks of security, in accordance with article 50 of this law, you can request the service of storage for these stocks, which you will be granted according to the contracted operational use. If there is no available capacity for all the plaintiffs of the service, is assigned the existing with a criterion of proportionality.

3 shall have the right of access to the transport and storage facilities operators to the wholesale, as well as consumers and marketers of petroleum products that implementing regulations shall determine according to their level of annual consumption.

4 holders of facilities may refuse access by third parties in the following cases: to) that there is available capacity during the contractual period proposed by the potential user.

(b) that the applicant is not current in the payment of obligations arising from previous uses.

5. in addition, the network access may be refused when the applicant company or that you purchase the product, directly or through agreements with other providers, or those to which any of them is linked, is situated in a country in which are not recognized similar rights and considered it may be an alteration of the principle of reciprocity to companies to which access is required. All of this without prejudice to the criteria to follow regarding companies of States members of the European Union pursuant to the uniform legislation in this area to be determined.

Article 42. Operators to the wholesale.

1 will be operators to the wholesale refineries holders, its majority-owned subsidiaries, and those subjects who obtain the authorization of the activity referred to in this article.

2 will be up to the operators to the wholesale sale of petroleum products for distribution to the retail.

3 applicants for authorisations to act as operators to the wholesale must evidence compliance with the following conditions: to) its legal, technical and financial capacity to carry out the activity.

(b) ensure compliance with the obligations of maintenance of minimum stocks of security, in accordance with the provisions of article 50 of this law.

4 creates a log file, in the Ministry of industry and energy, from operators to the wholesale of petroleum products.

Article 43. Distribution to the retail petroleum products.

1 the activity of distribution to the retail of petroleum products will include: to) the supply of fuels and fuels to cars in installations enabled to this effect.

(b) the supply to fixtures for consumption in the installation itself.

(c) the supply of kerosene bound for aviation.

(d) the supply of fuel to vessels.

(e) any other provision that is intended to the consumption of these products.

2. the activity of distribution to the retail fuel and petroleum fuels may be freely exercised by any natural or legal person.

The facilities used for the exercise of this activity should have mandatory administrative authorisations for each type of installation, in accordance with the complementary technical instructions laying down technical conditions and security of these facilities, as well as comply with the rest of the current regulations that may apply, in particular the reference to metrology and metrotechnique and protection of consumers and users in each case.

3 supply agreements exclusively between the operators to the wholesale and the owners of facilities for the provision of vehicles, will collect in its clauses, if such owners request, the wholesale firm of the above products.

The companies that distribute or supplied to the lower fuel and petroleum fuels must require, to holders of fixed reception facilities for consumption in the installation itself, the documentation and accreditation of compliance with their obligations.

When under contractual supply exclusive links, both firm sale contract as Commission, facilities for the supply of fuels or fuel to vehicles may be provided from a single operator that has implanted its brand image in the installation, this shall be entitled, without prejudice to the other powers set out in the contract to establish inspection or monitoring systems suitable for control of the origin, volume and quality of fuels delivered to consumers and to check that they correspond to those supplied to the installation.

Operators shall give account to the competent authorities, if they check deviations that could be indicative of fraud to the consumer and negative which, where appropriate, to check actions.

In these cases, the competent authority shall take the necessary measures to ensure the protection of the interests of consumers and users.

4. actions of inspection and monitoring of operators to the wholesale, referred to in the preceding paragraph, a procedure that ensures the possibility of the owners or managers of the installation of contrast tests carried out by both parties must be carried out.


Article 44. Registration of distribution facilities to the retail.

1. the autonomous communities shall constitute a record of distribution facilities to the retail which must be registered all those facilities that develop this activity in its territory, prior accreditation of compliance by such facilities of the statutory and regulatory requirements that are required.

2 a record of distribution facilities is created at the Ministry of industry and energy to the retail that allows the exercise of competences that correspond to the General Administration of the State.

By law, the procedure for communication of data from facilities that have been registered by the autonomous communities in their respective registers shall be established.

Chapter III article 45 petroleum Liquefied Gases. Operators to the wholesale.

1 will be operators to the wholesale gas liquefied petroleum those subjects who obtain the authorization of the activity referred to in this article.

2 correspond to the operators to the wholesale gas liquefied petroleum packaging and distribution activities to the wholesale, as well as distribution to the wholesale bulk gases.

You must bear brand or enough operator identification in container containing liquefied petroleum gas to the wholesale carried out its distribution.

3. to obtain the authorisation referred to in paragraph 1 applicants must prove the fulfilment of the following conditions: its legal, technical and financial capacity to carry out the activity.

Having the means to comply with the obligations of maintenance of minimum stocks of security, in accordance with the provisions of article 50 of this law.

Compliance by its facilities for storage and, where appropriate, packaging, technical conditions and safety established by regulation.

4. the subjects authorized for these activities must be available to marketers to the retail of liquefied petroleum bottled gas, and, where appropriate, of its clients a service of permanent facilities of its users technical support that ensures the correct operation of the same.

5. when receiving installation for the supply of liquefied gas in bulk oil is intended for pipeline distribution will be application the legal regime laid down in chapter V of title IV.

6. dealers to the retail of liquefied gases in bulk oil and marketers to the retail of bottled liquefied petroleum gases will be responsible for the technical conditions to be fulfilled by its facilities and security resulting regulations enforceable as well as its correct maintenance.

Operators to the wholesale shall require distributors and marketers who supplied the documentation accrediting compliance with the above obligations.

Article 46. Distributors to the retail petroleum bulk liquefied gases.

1, will be wholesalers to the retail gas liquefied petroleum bulk those subjects who obtain the authorization of the activity referred to in this article.

2. to obtain such authorization, applicants must prove the fulfilment of the following conditions: its legal, technical and financial capacity to carry out the activity.

Compliance by their storage facilities of technical conditions and security to be established by regulation.

3. holders of reception facilities for liquefied gases of oil in bulk for consumption will be responsible for the technical conditions to be fulfilled by its facilities and security that are statutorily required, as well as its correct maintenance.

Companies that supply petroleum bulk liquefied gases must require the owners of facilities supporting documentation of compliance with the above obligations.

4. not necessary the authorization referred to in this article for the sale of liquefied petroleum gases bulk supply to vehicles made from fixed installations for distribution to the retail petroleum products regulated in article 43 of this law.

Article 47. Marketing to the retail of bottled liquefied petroleum gases.

1. the marketing to the retail of bottled liquefied petroleum gases will be made freely by any natural or legal person.

Facilities intended for the storage and marketing of containers of bottled liquefied petroleum gases, meet technical and safety conditions that them are statutorily required.

2 supply agreements may not be exclusive of liquefied gases of oil packaged between operators and marketers them referred to in this article, no more exception than those concluded between those and the agents Commission integrated into their distribution networks.

With agents in exclusive distribution networks must ensure users that request it the home supply of bottled liquefied petroleum gases.

3. marketers to the retail of bottled liquefied petroleum gases must be available to its customers a permanent technical assistance of consumption facilities service itself or through an operator to the wholesale, so as to guarantee an adequate service to all users.

4. holders of bottled liquefied petroleum gases consumption facilities are responsible for the technical conditions to be fulfilled by its facilities and security that are statutorily required, as well as proper maintenance of the same.

Article 48. Registration of operators to the wholesale of liquefied petroleum gases.

The operators record is created in the Ministry of industry and energy to the wholesale of liquefied petroleum gases, where the authorized subjects must be registered for the activities referred to in article 45 of this law.

By law, the procedure for communication of data which have to be included in the register will be established.

Chapter IV security of supply article 49. Security of supply.

1. all consumers shall have the right to the supply of the petroleum products in the country, under the conditions provided for in this law and its implementing rules.

2 in situations of scarcity of supply, by agreement, the Council of Ministers may adopt in the field, with the duration and the exceptions which are determined, inter alia, any or some of the following measures: to) limitations of the maximum speed of traffic rolled on public roads.

(b) limitation of the movement of any types of vehicles.

(c) limitation of the navigation of ships and aircraft.

(d) limitation of hours and days of opening of facilities for the supply of petroleum products.

(e) suspension of exports of energy products.

(f) submission to a system of intervention of the minimum stock of security referred to in the following article.

(g) limitation or allocation of supplies to consumers of all types of petroleum products, as well as restrictions on the use of the same.

(h) impose on the holders of concessions for the exploitation of hydrocarbons referred to in title II obligation to supply its product to domestic consumption.

(i) intervene the selling prices the retail of petroleum products.

(j) any other measures that may be recommended by international agencies that the Kingdom of Spain is a party, to be determined pursuant to those agreements in which they participate or those who have subscribed in the contemplated similar measures.

In relation to such measures is determined, also, the remuneration arrangements applicable to those activities that would be affected by measures taken to guarantee, in any case, a balanced allocation of costs.

Article 50. Minimum safety stock.

1. all licensed operator to distribute to the wholesale petroleum products in national territory, and any company that develops an activity of distribution to the retail petroleum fuels not acquired operators regulated by this law, shall maintain at all times minimum safety stock of products in quantity, shape and location which the Government determines by regulation , up to a maximum of one hundred twenty days of their annual sales. This maximum may be revised by the Government when required by international commitments of the State.

Consumers of fuels, in the part not supplied by operators governed by this law, shall also maintain minimum security stocks in the amount resulting regulations enforceable attending its annual consumption.

For the purposes of the computation of the minimum stock of security, which will have a monthly basis, shall be considered the totality of stocks stored by operators and enterprises referred to in paragraph first in the whole of the national territory.

2. in the case of liquefied petroleum gas distributors at the wholesale this product, as well as marketers or consumers not buying the product to dealers, will be required to maintain minimum stocks of security up to a maximum of thirty days of annual consumption or sales.


3. the inspection of the fulfilment of the obligation of maintenance of minimum stocks of safety will be up to the Ministry of industry and energy when the obligated subject is an operator to the wholesale and the regional governments where the obligation affects dealers at the retail or consumer.

By law, the procedure for communication of information between the competent public administration for inspection and the Corporation's strategic reserves of petroleum products referred to in article 52 shall be established.

Article 51. Strategic stocks.

1. regulations will determine the part of minimum stocks of qualifying security as strategic stocks, corresponding to the corporation referred to in article 52 the Constitution, maintenance, and management.

2. won't exist strategic stocks in minimum security stock corresponding to the liquefied petroleum gases.

Article 52. Entity for the Constitution, maintenance, and management of the safety stock.

1. the strategic reserves of petroleum products Corporation purpose shall be the Constitution, maintenance and management of strategic reserves and control of minimum security stocks referred to in the preceding articles. Also, as a corporation under public law with its own legal personality, shall act under private law and shall be governed by the provisions of this law and its development provisions. The Corporation will be subject, in the exercise of its activity, to the supervision of the General Administration of the State, who shall exercise it through the Ministry of industry and energy.

2. the Corporation shall be exempt from corporate income tax with respect to income derived from the financial contributions made by its members.

The contributions made by the members, as they contribute to the provision of reserves of the Corporation, shall not be fiscally deductible for the purpose of determine their taxable corporate income tax bases. Such contributions will be calculated to determine increases or decreases of heritage that correspond to the members of the Corporation, due to its low in the same or a modification of the amount of their mandatory stocks, according to the regulation of these assumptions.

Incomes who revealed the operations referred to in the previous paragraph will not give right to the deduction for double taxation of dividends in the part that corresponds to income not integrated in the base of the societies of the corporation tax.

Also, shall be exempt from tax the income that could earn the Corporation as a result of the operations of provision of strategic stocks, income which may not be subject to distribution among the members, or loans or similar financial transactions with them.

3. in order to ensure the fulfilment of the obligation to maintain strategic stocks, the Corporation may acquire crude oils and petroleum products and enter into contracts with the limits and conditions to be determined according to the rules.

Any provision of strategic stocks by the Corporation shall require the prior authorization of the Ministry of industry and energy and must be carried out at a price equal to the weighted average cost of acquisition or the market, if it is over, exceptions determined by regulation. Also, Corporation posted their stocks to the weighted average cost of acquisition since the creation of the same.

Members shall contribute to the financing of the Corporation, cede or lease you stocks and provide facilities in the form determined by law.

The financial contribution of each Member is set depending on the costs that the Corporation incurred in the Constitution, storage and maintenance of strategic stocks to come obliged to maintain, as well as the cost of the other activities of the same. In addition, this financial contribution shall allow the provision by the Corporation, on the terms determined by regulation, of the necessary reserves for the proper exercise of their activities.

Operations of purchase, sale and lease of strategic stocks, as well as those relating to storage, shall comply with standard contracts whose model shall be approved by the Ministry of industry and energy.

4. the Corporation shall also check compliance with the obligation to maintain minimum stocks of safety as provided for in article 50 of this law. Therefore you can gather the information and perform the inspections that are accurate, as well as promote, where appropriate, the initiation of the record penalties where appropriate.

Who come and obliged to maintain minimum security stocks, because in the exercise of its activity is supply with petroleum fuels not acquired operators regulated by this law, may, in cases determined by law and the conditions and depending on the volume of its activities, satisfy the obligation established in article 50 of the law on payment of a fee per tonne of product imported or acquired for consumption to finance the costs of Constitution, storage and maintenance of minimum stocks of safety that apply, including the strategic.

This fee will be determined by the Ministry of industry and energy with the necessary frequency and will be perceived by the Corporation in the form determined by law.

5. by law, the functions of the Corporation will be developed and you will be established your organization and operating regime. Administration bodies will be sufficiently represented the operators to the by greater than that referred to in article 42 of this law, as well as representatives of the Ministry of industry and energy and the National Energy Commission.

Representatives of members of the Corporation operators, will be part of your Assembly and your vote on it will graduate according to the volume of its annual financial contribution.

The President of the Corporation and the part of the members of its Board of Directors to be determined by regulation shall be designated by the Minister of industry and energy. The owner of said Department may impose its veto to those agreements of the Corporation who violates the provisions of this law and provisions of development.

Article 53. General obligations.

Under section 50 of this Act are required to keep minimum safety stock, as well as all that company which provides services of logistics of petroleum products, are obliged to comply with the guidelines issued by the Ministry of industry and energy with respect to its facilities and maintenance, safety, quality of products and providing information. Also, they will be obliged to make available priority supplies that are designated for reasons of strategy or difficulty in providing.

Title IV management of the supply of fuel gases by channeling chapter I provisions general article 54. Regime of activities.

1. the activities of manufacturing, regasification, storage, transportation, distribution and marketing of gaseous fuels to its delivery by pipeline, can be freely made in the terms provided in this title, without prejudice to the obligations arising from other provisions, and especially of the fiscal and of those relating to the management of territory and environment, and defence of consumers and users.

2. the activities of import, export and intra-Community trade of gaseous fuels without more requirements than those derived from Community legislation.

Article 55. Licensing regime.

1 will require prior administrative authorization in the terms established in this Act and provisions that it developed, the following facilities intended for the supply of gaseous fuels by pipeline users: to) plants of regasification and liquefaction of natural gas and manufacture of synthetic or manufactured combustible gases or combustible gas air mixture.

(b) installations of storage, transportation and distribution of natural gas.

(c) the storage and distribution of gaseous fuels, liquefied petroleum gases manufactured, and synthetics and blends of gas and air for delivery by pipeline.

Activities relating to the liquefied petroleum gases which are distributed to the consumers end, packed or in bulk, shall be governed by the provisions of title III.

2 may be made freely, without more requirements than those relating to compliance with the technical safety and environmental provisions, the following facilities: a) which relate to in the previous paragraph when its object is the own consumption, and may not provide to third parties.

(b) those relating to the manufacture, mixing, storage, distribution and supply of gaseous fuels from a producer Center in which the gas is a by-product.

(c) for storage, distribution and supply of liquefied gases of petroleum and natural gas of a user or users from a same block of flats.

(d) the direct lines consisting of a pipeline for natural gas whose sole object is the connection of a consumer that is qualified with the gas system installations.


3 authorisation not required for administrative projects of facilities needed for the considered national defence of military interest, in accordance with law 8/1975 of March 12, of areas and facilities of interest to national defense, and its implementing regulations.

Article 56. Production of combustible gases.

1 a the effects laid down in this Act will be considered manufacture of combustible gases, provided that these are intended for final delivery to consumers by pipeline, the following activities: to) manufacture of synthetic or manufactured gaseous fuels.

(b) the natural gas, butane or propane air mixture.

2. the manufacture of combustible gases shall conform to the criteria of planning in the field of hydrocarbons.

3. in relation to the administrative authorisation shall you apply provisions in this regard in article 73 of this law.

Article 57. The supply security.

The supply of gaseous fuels by pipeline will be held to all consumers who demand it, included in the geographic areas within the scope of authorization and the conditions of quality and safety according to the rules established by the Government, consultation to the autonomous communities.

Chapter II system of natural gas article 58. Subjects who work within the system.

Activities to the supply of natural gas by pipeline will be carried out by the following subjects: a) carriers, are those holding legal persons of facilities of regasification of liquefied natural gas, transportation or storage of natural gas.

The facilities of carriers shall constitute a transport subsystem when supply through them more than 3 per 100 market consumption.

(b) dealers, are those legal holders of distribution facilities who have the function to distribute natural gas by pipeline, as well as build, maintain and operate facilities for distribution to the gas consumption points.

(c) marketers, are companies which, accessing the facilities of third parties under the terms established in this title, acquire natural gas for sale to consumers or other traders.

Article 59. System gas and natural gas basic network.

1. the gas system includes the following facilities: those included in the basic network, secondary transport networks, networks of distribution and other supplementary facilities.

2 a the effects specified in this law, the natural gas basic network will be integrated by: to) primary transportation of natural gas high-pressure pipelines. Those whose maximum design pressure is equal to or exceeds 60 bar will be considered as such.

(b) the regasification of liquefied natural gas plants that can supply system gas and natural gas liquefaction plants.

(c) the storage strategic natural gas, that can supply the gas system.

(d) the basic deposits of natural gas in the interior or storage network connections.

(e) the international connections of the gas system Spanish with other systems or sites abroad.

3. the secondary transport networks are formed by the pipeline's maximum design pressure of between 60 and 16 bars.

4 distribution networks include pipelines with maximum pressure of design equal or less than 16 bars and those others who, regardless of their maximum design pressure, relate to driving the gas to the consumer on the basis of a basic or secondary transportation pipeline.

Article 60. Operation of the system.

1. activities carried out by the subjects referred to in article 58 will take place in free competition, in accordance with the provisions of this law and regulations which develop it.

The regasification, strategic storage, transport and distribution have character of regulated activities, whose economic and operating regime shall be adjusted as provided in this law.

2. marketing shall be exercised freely under the terms provided for in this law and its economic regime determined by the conditions that were agreed between the parties.

3. for the purposes of the acquisition of gas, consumers are classified into: qualified, understanding as such consumers, those whose facilities located on a site have in every moment consumption provided for in the fifth transitional provision. These consumers will acquire the gas marketers in freely agreed conditions or directly.

They shall be in any case consumers qualified holders of production facilities of electricity for the consumption of these when they come into competition in accordance with the Law 54/1997, of 27 November, in the electricity sector.

Non-eligible consumers who acquire the gas distributors in rates regime.

To meet the consumption rate that occur within the scope of its network, dealers will acquire gas carriers.

4. guarantees of third-party access to basic facilities and the transport and distribution facilities in the technical and economic conditions laid down in this law. The price for the use of these facilities determined by the toll road approved by the Government.

5. unless otherwise expressly agreed, ownership of gas transmission shall be produced at the time in which it has input on the premises of the buyer.

For marketers, the transmission of ownership of the gas means produced, unless otherwise agreed, when the same input in your customer's premises.

6. activities for the supply of natural gas carried out in extrapeninsulares and island Territories will be subject to singular regulatory regulation, agreement with the communities and autonomous cities affected and attend to the specific needs arising from their territorial status.

Article 61. Acquisitions of gas.

1 can purchase natural gas for consumption in Spain: carriers for resale to other carriers, as well as to distributors that they were connected to their networks to serve non-eligible consumers supplies to rate.

Marketers for resale to qualified consumers or other traders.

Qualified consumers.

2 subjects authorized to acquire natural gas shall have the right of access to re-gasification, storage, transport and distribution facilities in the terms established by law.

Article 62. Accounting and reporting.

1. institutions that develop any or some of the activities referred to in article 58 of this law, take their accounting in accordance with Chapter VII of the corporations law, even though they had no such character.

The Government will regulate the adjustments that were necessary for the assumption that the holder of the activity is not a corporation.

2. institutions must explain in the notes on the accounts the criteria applied in the distribution of costs with respect to the other companies of the group different gas-related activities.

These criteria must be maintained and remain unchanged, except for exceptional circumstances. Modifications and its justification shall be explained in the annual report for the corresponding financial year.

3. the entities acting on the gas system should provide management information that required them, especially in relation to contracts for supply and supply of gas that had been signed and its financial statements, should the latter be verified through audits of the company itself.

When these entities are part of a group of companies, information obligation shall also extend to society that exercises control of which operates gas whenever you act in some energy sector and to those of other companies of the group which carried out operations with which carries out activities in the gas system.

They must also provide to the competent authority all information about its activities, investments, quality of supply, measured according to the standards specified by the Administration, markets served and provided with maximum detail, supported and passed on prices, as well as, any other information that the competent administration creates timely for the exercise of their functions.

4. institutions shall provide in its annual report information on activities in the field of energy saving and efficiency and protect the environment.

Article 63. Separation of activities.

1. commercial companies that develop any or some of the regulated activities referred to in article 60.1 of the Act must have exclusive corporate purpose the development of them unless they can, therefore, carry out marketing activities.

2. societies dedicated to the marketing of natural gas must be unique corporate purpose in the gas sector activity, and may not engage in regasification, storage, transport or distribution.


3. in a group of companies may develop incompatible activities pursuant to the preceding paragraphs, provided that they are exercised by different societies. To that end, the purpose of an entity may include such activities provided that expected that a single activity is exercised directly and the rest through the ownership of shares or participations in other companies.

4 companies of natural gas that more exercise one of the activities listed in article 60.1 of the Act, will be in its internal accounting separate accounts for each of them, as they would be required to them if the activities were carried out by separate undertakings, in order to avoid discrimination, subsidies between different activities and distortions of competition.

Carriers must also be separate accounts of operations of purchase and sale of gas and its activity of marketing to rate vendors.

5. those companies that develop activities regulated may take shareholdings in companies that carry out activities in other economic sectors in the sector of natural gas, after obtaining the authorization referred to in the eleventh additional provision, third 1, thirteenth of this law. In any case, the companies referred to in this article must be accounting separate from all those activities that perform outside the sector of natural gas and those of any nature carried out abroad.

Chapter III technical management system of natural gas article 64. Rules of technical management of the system.

1. the Ministry of industry and energy, following a report of the National Energy Commission and the Committee of the follow-up of the gas system, shall adopt the rules of technical management of the system which purpose is to promote the proper technical operation of the gas system and to ensure the continuity, quality and security of supply of natural gas, coordinating the activity of all carriers.

2 regulations of technical management of the system referred to in the preceding paragraph shall regulate, at least the following aspects: to) the mechanisms to guarantee the necessary level of supply of natural gas from the system short and medium term and the maintenance of minimum stocks of safety.

(b) the coordination procedures that guarantee the correct operation and maintenance of the facilities of regasification, storage and transportation, in accordance with the criteria of reliability and security, specifically looking at the forecast of action plans for the replacement of the service in case of General faults in the supply of natural gas.

(c) procedures for the control of inputs and outputs of natural gas towards or from the national gas system.

(d) the calculation of the daily balance of each authorized subject procedure to introduce natural gas into the system.

(e) the procedure of management and use of international interconnections.

(f) the procedure on the measures to adopt in the case of shortages and emergencies.

3. carriers, and in particular the holders of transport subsystems, propose standards of technical management of the system, referred to in paragraph 1 of this article, and apply them to respecting, in any case, the principles of objectivity, transparency and non-discrimination.

Article 65. Committee on follow-up of the gas system.

To ensure the transparency of the basic variables of the system, is created a follow-up Committee of the gas system, which will be part carriers, distributors, marketers and consumers.

The Organization, composition and functions of the mentioned monitoring Committee of the gas system, shall be established by law.

Chapter IV regasification, transport and storage of natural gas article 66. The network of secondary transport of gaseous fuels.

1. the network of secondary natural gas transportation consists of the pipeline's maximum design pressure range between 60 and 16 bars, compression stations, regulation and measure stations.

They are also considered constituent elements of the transport network all assets of communications, protection, control, auxiliary services, land, buildings and other elements, necessary for the proper operation of specific previously defined transport network facilities.

2. carriers are responsible for the development and expansion of the transport network set out in this article, in such a way to ensure the maintenance and improvement of a network configured under homogeneous and coherent criteria.

3. be established how many technical rules are called for to ensure the reliability of the supply of gas and the transport network and the facilities it connected. These standards will tend to ensure the protection and safety of persons and their goods, quality and reliability of its operation, the unification of the conditions of supply, providing a good service and shall be objective and non-discriminatory.

Article 67. Administrative authorizations.

1 requiring prior administrative authorization, in the terms established in this law and its provisions of development, construction, operation, modification, and closure of the facilities of the basic network and transport networks outlined in article 59, without prejudice to the legal regime applicable to underground storages in accordance with title II of this law.

The transmission of these facilities must be communicated to the awarding authority of the original authorization.

The administrative authorisation of closure of a facility may impose on its holder the obligation to proceed to its dismantling.

Authorisations for construction and operation of pipelines for transport subject to mandatory planning, in accordance with article 4 of this law, shall be granted through a procedure that ensures the concurrence, promoted and resolved by the competent authority.

2 applicants for authorisations for gas installations as listed in paragraph 1 of this article must prove sufficiently the following requirements: to) the safety of the proposed facilities and technical conditions.

(b) the proper fulfilment of the conditions of protection of the environment.

(c) the appropriateness of the location of the installation to the land use planning scheme.

(d) its legal, technical and financial capacity to carry out the project.

Applicants must take the form of commercial company of Spanish nationality or, where applicable, of another Member State of the European Union with permanent establishment in Spain.

3. the authorizations referred to in paragraph 1 of this article shall be granted by the competent authority, without prejudice to the concessions and authorizations on protection of the public domain which may be necessary, in accordance with other provisions that are applicable, the corresponding sectoral legislation and in particular those relating to the regional planning, urban planning and the environment.

The procedure and the granting of the authorization will include the processing of public information.

Granted authorization and for the purposes of ensuring compliance with their obligations, the owner shall constitute a guarantee around a 2 per 100 facilities budget.

The authorization in any case means granted monopoly or be granted exclusive rights.

The lack of express resolution of applications for authorization referred to in this article, will have rejected effects. In any case, may bring an ordinary appeal to the relevant administrative authority.

4 installation of transport authorisations will contain all the requirements that must be observed in their construction and operation.

When the licensed facilities are connected to existing installations of different holder, this should allow connection under the conditions established by law.

5. the non-compliance with the conditions and requirements laid down in the authorizations or the substantial variation of the budgets that determined its granting may lead to its revocation.

The competent authority shall refuse authorization when legal requirements are not met or the company does not guarantee the legal, technical and economic capacity necessary to undertake the proposed activity.

Article 68. Obligations of holders of authorizations for the regasification, transport and storage of natural gas.

The holders of administrative authorizations for the regasification of liquefied natural gas and for the transport and storage of natural gas, will have the following obligations: to) carry out their activities in the authorized manner and in accordance with the applicable provisions, providing the service of a regular and continuous, with levels of quality to be determined and maintaining facilities in adequate conditions of conservation and technical suitability following, where appropriate, the instructions given by the competent authority.

(b) make purchases of natural gas needed to deal with the requests for supply of other carriers and distributors connected to their networks.


(c) to facilitate the use of its facilities for gas movements resulting from the provisions of this law, and support the use of all facilities by all authorized individuals, under non-discriminatory conditions, in accordance with the technical standards.

(d) be entered in the administrative registration of facilities of carriers from Gas.

(e) conclude contracts of regasification, storage and transport with those who have a right of access to its facilities.

(f) provide any other undertaking performing storage, transmission and distribution activities, sufficient information to ensure that the transport and storage of gas can produce in a way compatible with the safe operation and effective of the interconnected.

(g) to provide the information with the detail and frequency with which is required by the competent authority and communicate to the Ministry of industry and energy contracts for access to its facilities that celebrate. Also they must notify the regional authorities contracts for access to its facilities when these facilities are located total or partially in this autonomous community and the contracting of these services is a qualified consumer, a marketer or a carrier with facilities in this autonomous community.

Article 69. Rights of holders of regasification, transport and storage of natural gas facilities.

Owners regasification, transport and storage facilities shall have the right to recognition by the administration of a remuneration for the exercise of its activities within the gas system in the terms established in Chapter VII of this title of this law.

They may also require that facilities connected to the of your property meet the technical conditions laid down and when used properly.

Article 70. Access to transport networks.

1. the owners of the facilities must allow the use of these qualified consumers, marketers and carriers who fulfil the required conditions, by separately or jointly hiring the services of transport, regasification and storage, on the basis of principles of non-discrimination, transparency and objectivity. The price for the use of transport networks determined by regulations approved tolls.

2. regulations shall be governed the conditions of third-party access to facilities, the obligations and rights of owners of facilities related to the access of third parties, as well as the qualified, traders consumers and carriers. It will also define the minimum content of the contracts.

3 may be refused access to the network in the event of insufficient capacity or when access to the network prevented the obligations of supply that have been imposed or because of economic and financial difficulties that they may arise from the execution of contracts of compulsory purchase, under the conditions and with the procedure established by regulation following the criteria of the uniform legislation that will have serious.

4 may, also, prior conformity of the National Energy Commission, denied access to the network, when the supplier of gas, directly or through agreements with other providers, or those to which any of them is linked, is situated in a country in which are not recognized similar rights and considered it may be an alteration of the principle of reciprocity to companies to which access is required without prejudice to the criteria to follow with regard to enterprises of Member States of the European Union pursuant to the uniform legislation is established.

Article 71. Administrative registration of transporters of Gas installations.

He is created in the Ministry of industry and energy, an administrative register of installations of Gas carriers, in which shall be recorded all those facilities of transportation, storage, and regasification allowed and the conditions of such authorisations. According to the rules, prior report of the autonomous communities, establish your organization, as well as the procedure of registration and data communication to the administrative registration of facilities of carriers from Gas.

The autonomous communities with the skills can create and manage the corresponding territorial records in which all facilities located within the territorial scope of those must be registered.

Chapter V distribution of gaseous fuels by pipeline article 72. Regulation of the distribution.

1. the distribution of gaseous fuels will be governed by this law, its standards development and by the regulations issued by the autonomous communities in the field of its competences. The Government also established regulations that required coordination, performance and remuneration of the system.

2. the management of the distribution purpose shall be to establish and apply common principles that guarantee its proper relationship with the remaining gas activities, determining the conditions of gas transit for such networks, establish sufficient equality between those who make the activity throughout the territory and the fixing of comparable conditions common to all users.

Article 73. Authorization of distribution of natural gas facilities.

1 are considered installations of natural gas distribution pipelines with maximum design pressure equal or less than 16 bars and those others who, regardless of their maximum design pressure, relate to drive gas to the consumer on the basis of a pipeline Basic or secondary transportation, including existing facilities between transport and supply points.

2. they shall be subject to prior administrative authorisation, in the terms established in this law and its provisions of development, construction, modification, operation and closure of the facilities of natural gas distribution irrespective of their destination or use.

The transmission of these facilities must be communicated to the awarding authority of the original authorization.

The administrative authorisation of closure of a facility may impose on its holder the obligation to proceed to its dismantling.

3 applicants for authorisations for gas installations as listed in the previous section must prove sufficiently the fulfillment of the following requirements: to) the safety of the proposed facilities and technical conditions.

(b) the proper fulfilment of the conditions of protection of the environment.

(c) the appropriateness of the location of the installation to the land use planning scheme.

(d) its legal, technical and financial capacity to carry out the project.

(e) applicants shall take the form of joint-stock company of Spanish nationality or, where applicable, of another Member State of the European Union with permanent establishment in Spain.

4. the authorizations referred to in paragraph 2 of this article shall be granted by the competent authority, without prejudice to the concessions and permits that may be necessary, in accordance with other provisions that are applicable, the corresponding sectoral legislation and, in particular, those relating to the management of the territory and the environment.

The authorisation procedure will include the process of public information and the form of a resolution in the event of concurrence of two or more applications for authorization.

Granted the authorization and for the purposes of ensuring compliance with their obligations, the owner shall constitute a guarantee around a 2 per 100 facilities budget.

The authorization in any case means granted monopoly or be granted exclusive rights.

The lack of express resolution of applications for authorization referred to in this article, will have rejected effects. In any case, may bring an ordinary appeal to the relevant administrative authority.

5. the authorizations of distribution facilities will contain all the requirements that should be observed in its construction and operation, the delimitation of the zone in which the supply, the commitments of the network expansion in this area which should take the applicant company and, where appropriate, the deadline for the implementation of these facilities and their characterization should be.

When the licensed facilities are connected to existing installations of different holder, this should allow connection under the conditions established by law.

6. the breach of the conditions, requirements of authorisations or the substantial variation of the budgets that determined its granting may lead to its revocation.

The competent authority shall refuse authorization when legal requirements are not met or the company does not guarantee the legal, technical and economic capacity necessary to undertake the proposed activity.

7. authorisations for construction and operation of distribution facilities may be granted by means of a procedure that ensures the concurrence, promoted and resolved by the competent administration.

Article 74. Obligations of distributors of natural gas.

Obligations of distributors of natural gas will be:


(a) execute the supply to rate all applicant it and extending it to any subscriber who requests it, provided that there is capacity to do so and provided that the place where the delivery of the gas is to be made is understood within the geographical scope of the authorization, by subscribing to the effect the corresponding policy of fertilizer or, where appropriate, supply contract.

(b) make purchases of gas necessary for carrying out the supply.

(c) perform its activities in the authorized manner and in accordance with the provisions applicable, supplying gas to consumers in a regular and continuous basis, following instructions issued by the competent authority in relation to the third-party access to their distribution networks, where this relevant, with the quality standards to be laid down and keeping plants in appropriate conditions of conservation and technical suitability.

(d) proceed to the expansion of distribution facilities, the geographic scope of their authorization, when so required to meet new demands of gas supply, without prejudice to that obtained by the application of the regime according to the rules established for the rush.

When there are several dealers whose facilities are capable of expansion to meet new supplies and none of them decide to undertake it, the competent authority shall determine which of these distributors it should be done, according to their conditions.

(e) carry out contracts for access to third parties to the network of natural gas under the conditions determined by law.

(f) transport, storage and marketing of natural gas companies provide enough information to ensure that the gas transmission cannot occur in a manner compatible with the secure and efficient operation of the system.

(g) communicate to the competent authority that it had granted authorizations of facilities, the relevant modifications of their activity so that it forward the information to the Ministry of industry and energy, for the purposes of determination of the rates and fixing his remuneration regime.

(h) communicate to the competent authority is referred to the Ministry of industry and energy information to be determined prices, consumption, billing and conditions of sale applicable to consumers and corresponding volume by categories of consumption, as well as any information related to the activity to develop within the gas sector.

Also, they must notify each autonomous community the information requested them, relative to its territorial scope.

(i) be entered in the administrative register of distributors, marketers and consumers qualified of gaseous fuels by pipeline referred to in this title.

(j) make the rush and the coupling of new users in accordance with the regulations.

(k) proceed to the measurement of the supplies in the form determined by law, preserving, in any case, the accuracy of the same and the accessibility of the corresponding devices facilitating the control of the competent administrations.

Article 75. Rights of distributors.

1. dealers are entitled to purchase natural gas from the carrier to the network are connected to the price of transfer which will be established in accordance with the provisions of Chapter VII of this title for the supply to customers at authorized rates.

2. equally, have the right to receive the remuneration that corresponds according to the provisions of Chapter VII of this title.

Article 76. Access to the natural gas distribution networks.

1. the holders of distribution facilities shall allow the use of the same qualified consumers and marketers who fulfil the required conditions, on the basis of principles of non-discrimination, transparency and objectivity. The price for the use of networks of distribution determined by administratively approved tolls.

2. the Distributor may only deny access to the network should not have the necessary capacity. The refusal should be reasoned. Lack of capacity can only be justified by criteria of safety, regularity or quality of supplies, according to the demands for these purposes is established by law.

3. regulations shall be governed the conditions of third-party access to facilities, the obligations and rights of owners of facilities related to the access of third parties, as well as qualified, traders consumers and distributors. Likewise, the criteria of the contracts will be defined.

Article 77. Distribution of other gaseous fuels.

1. the distribution facilities of other gaseous fuels, the manufacturing plants of combustible gases referred to in article 56, storage of liquefied petroleum gas plants intended to supply these by pipeline and the necessary pipeline for supply from plants or storage prior to final consumers themselves.

2. the authorization of these facilities shall be governed by the provisions of article 73, evaluating the suitability of design and construction of support facilities for the distribution of natural gas, and they will have the rights and obligations listed in articles 74 and 75 of this Act, with the exception of obligations relating to third-party access to the facilities and the right to acquire natural gas at the price of transfer.

3. the companies facilities that regulates this article, shall be entitled to transform them, fulfilling the technical conditions of security that are applicable, for use with natural gas, which must apply for authorization to the awarding administration of authorization, by subjecting all provisions for natural gas distribution facilities.

Article 78. Direct lines.

1 means hotline a pipeline for the interconnected, to supply additional natural gas to a consumer.

2. qualified consumers can build direct lines being excluded use of the remuneration regime for transport and distribution activities established in the present law.

3. the construction of direct lines is excluded from the application of the provisions relating to expropriation and servitudes established under this Act, subject to the general law.

The opening to third parties for the use of the line will require that it be integrated into the gas system under which regulations are available.

Chapter VI supply gaseous fuels article 79. Supply.

1. the supply of gaseous fuels will be performed by the distributors in the case of consumers in tariff regime, or marketers in the case of qualified consumers.

2. the supplies consumers in rate regime are governed by a policy approved by Royal Decree, subscription or contract that may take into account the situation of those who by their volume of consumption or supply conditions require specific contractual treatment.

3 supply to consumers shall be governed according to the rules in response, at least the following aspects: to) the terms and conditions of supply to consumers.

(b) the terms on which will be effective the supply obligation, causes and procedure for refusal, suspension or deprivation of the same.

(c) the regime of verification and inspection of reception facilities for consumers.

(d) the procedure of measurement of consumption through the installation of devices of measurement and the verification of these.

(e) the procedure and conditions of billing and collection of supplies and services performed.

Article 80. Marketers of natural gas.

Those legal persons wishing to act as distributors, have prior administrative authorization, to be regulated character and will be granted by the competent authority, according to the compliance requirements established by law, which will include, in any case, sufficient legal, technical and economic capacity of the applicant. Administrative to act as marketer, authorization shall specify the geographical area in which it is intended to carry out the activity.

No authorization shall be granted monopoly nor will be granted exclusive rights.

Article 81. Obligations of marketers.

They are marketers, the following obligations: to) be registered in the administrative register of distributors, marketers and consumers qualified, which is established in this law.

(b) the obligations of maintenance of minimum stocks of security and diversification of supplies set out in Chapter VIII.

(c) conduct the development of its activity coordinated with the carrier or Distributor.

d) ensure the security of supply of natural gas to its customers subscribing regasification of liquefied natural gas transportation and storage contracts that are necessary.

(e) refer the periodical information to be determined by regulation to the competent administration for where appropriate to communicate the same to the Ministry of industry and energy. Also refer to the autonomous communities the information which is specifically claimed them relative to its territorial scope.


Article 82. Rights of marketers.

Marketers will have the following rights: to) carry out acquisitions of gas under the terms established in chapter II of this title.

(b) to sell natural gas to qualified consumers and other marketers in freely agreed conditions.

(c) access to the facilities of third parties under the terms laid down in this title.

Article 83. Obligations and rights of dealers and traders in relation to the supply.

1 shall be obligations of distributors, in relation to the supply of gaseous fuels, the following: to), in conditions of equality, to meet the demands of new gas supplies in the areas in which they operate and formalize contracts for the supply in accordance with the established by the administration.

Shall be statutorily regulated the conditions and procedure for the establishment of rush and the coupling of new users to the distribution networks.

(b) proceed to the measurement of the supplies in the form determined by law, preserving, in any case, the accuracy of the same, and the accessibility to the corresponding devices, facilitating the control of the competent administrations.

(c) apply the rate corresponding to consumers.

d) inform consumers in the choice of the most suitable tariff for them, and how many issues could apply in relation to the gas supply.

(e) implement demand management programs approved by the administration.

(f) to ensure a rational use of energy.

(g) acquire the necessary gas for the development of its activities.

(h) maintain an operating system that ensures the permanent attention and resolution of incidents which, as a matter of urgency, may occur in distribution networks and reception facilities for consumers to rate.

(i) testing prior to the delivery according to the rules defined.

(j) conduct inspection visits to the existing reception facilities, with the periodicity defined by regulation.

2 will be marketers in relation to the supply obligations: to) proceed directly or through the relevant distributor to the measurement of the supplies in the form determined by law, preserving, in any case, the accuracy of the same and the accessibility to the corresponding devices, facilitating the control of the competent administrations.

(b) to implement demand management programs approved by the administration.

(c) to ensure a rational use of energy.

(d) acquire the necessary gas for the development of its activities.

(e) provide to their customers the information and advice that could apply in relation to the gas supply.

(f) testing prior to the delivery according to the rules defined.

(g) carry out inspection visits to the existing reception facilities, with the periodicity defined by regulation.

3 distributors and marketers will have right to: to) require that facilities and receiving units to eligible technical and construction to be determined, as well as the proper use of the same and the fulfilment of the conditions laid down to allow the supply without deterioration or degradation of its quality for other users.

(b) Bill and collect the performed supply.

(c) request the verification of the proper functioning of the supplies measurement equipment.

4. without prejudice to the responsibility that is derived from the obligations corresponding to the distributors and marketers in accordance with the provisions of this article, holders of reception of natural gas facilities or facilities for consumption, will be responsible for the proper maintenance on the technical conditions and safety that are enforceable.

5. is created in the Ministry of industry and energy the administrative register of distributors, marketers and consumers qualified of gaseous fuels by pipeline. According to the rules, prior report of the autonomous communities, will establish your organization, as well as the procedures of registration and communication of data to this register.

The autonomous communities with the skills can create and manage the corresponding territorial records.

Article 84. Demand-side management programs.

1. the distributors and marketers, in coordination with the different agents that Act on the demand, gas may develop action programmes which, through appropriate demand management, improve the service provided to users and the efficiency and saving energy.

2. without limiting the foregoing, public authorities may adopt measures that encourage the improvement of the service to the users and the efficiency and energy saving, directly or through economic agents whose object is the savings and the introduction of greater efficiency in the end use of natural gas.

Article 85. Energy saving and efficiency plans.

The General Administration of the State and the autonomous communities, in the field of their respective territorial competence, may, through savings and energy efficiency, establish norms and basic principles to promote actions aimed at the achievement of the optimization of the processes of transformation of energy yields, inherent to production systems and consumption.

When these energy saving and efficiency plans established actions encouraged with public funds, cited administrations may require natural persons or legal participants presentation of an energy audit of the results.

Article 86. Quality of the supply of gaseous fuels.

1. the supply of gaseous fuels should be performed by the companies of authorizations provided for in this law, continuously when so contracted and characteristics to be determined by regulation.

To do this, gas companies will have the staff and resources necessary to ensure the quality of service required by the regulations.

The gas companies and, in particular, distributors and marketers promote the incorporation of advanced technologies in measurement and control of the quality of the supply of gaseous fuels.

2 If the low quality of the distribution of an area is continuous, or could produce serious consequences for users, or more special circumstances that can compromise security in the service gas, the competent administration regulations set performance guidelines, establishing its execution and implementation, which should be carried out by dealers to restore the quality of the service.

3 if it is found that the quality of the individual service provided by the company is less than the required, reductions shall apply in the revenue paid by the users, in accordance with the regulations established procedure to the effect.

Article 87. Inspector authority.

1. the competent administrative bodies will benefit, ex officio or upon request, the practice of many inspections and verifications are needed to verify the regularity and continuity in the delivery of supply, as well as to ensure the safety of persons and property.

2. the inspections referred to in the preceding paragraph shall ensure, at all times, that keep the characteristics of gas fuel supplied within the limits authorized officially.

Article 88. Suspension of the provision.

1. the supply of gaseous fuels to consumers only may be suspended when stating that possibility in the supply contract, which may never invoke problems of technical or economic order that hinder it, or due to force majeure or situations that may arise some threat to the safety of persons or things, except as provided in the following sections.

In the case of supply to qualified consumers will be to guarantee conditions of delivery or suspension which would have agreed.

2 may, however, be suspended temporarily when it is essential for the maintenance, security of supply, repair installations or improve service. In all these cases, the suspension will require prior administrative authorization and communication to users in the form determined by law.

3. under conditions to be determined by regulation may suspend the supply of gaseous fuels by pipeline to consumers subject to rate private when two months have elapsed since the payment, is would have been required them convincingly unless it was made effective. For this purpose the requirement be practiced by any means that allows to record the receipt by the person concerned or his representative, as well as the date, identity and the contents of the.

In the case of public administrations, two months since payment would have been required them truthfully unless the same has been made, will begin to accrue interest that will be equal to the legal interest of the money increased by 1.5 points. If four months since the first payment requirement would not become cash, the supply may be interrupted.


In no case may suspend the supply of gaseous fuels by pipeline to those facilities whose services have been declared as essential. By regulation the criteria will be established to determine which services are to be understood as essential. However, the distribution companies or distributors may affect payments received from those of their clients who have supplies linked to services declared as essential in non-performing loans situation, to the payment of the invoices corresponding to such services, regardless of the assignment the client, public or private, had attributed to these payments.

4. Once done the payment amount owed by the consumer that has supplies been suspended, this will spare him immediately.

Article 89. Standards and safety of the facilities.

1. the facilities of production, regasification, storage, transport and distribution of gaseous fuels, users, consumer equipment reception facilities, as well as the technical elements and materials for gaseous fuels installations must conform to appropriate standards of safety and quality industrial, in accordance with provisions of the law 21/1992, 16 July , of industry, without prejudice in the corresponding regional regulations.

2 technical regulations in this area will aim: to) protect persons and the integrity and functionality of the goods that may be affected by the facilities.

(b) obtain the required regularity in supplies.

(c) establishing rules of standardization to facilitate inspection of the facilities, prevent excessive diversification of the material and unify the conditions of supply.

(d) obtain the rationality and economic utilization of facilities.

(e) to increase the reliability of the facilities and the improvement of the quality of gas supplies.

(f) protect the environment and the rights and interests of consumers and users.

(g) achieving adequate levels of efficiency in the use of the gas.

3. without prejudice to the remaining authorizations covered under this title and for the purposes provided in this article, the construction, expansion or modification of gas installations will require administrative authorization in terms which are by law available.

The expansion of networks of distribution, within each authorized area, may be a joint authorisation for all the projected in the year.

Article 90. Coverage of risks.

The Government, in accordance with article 30 of law 26/1984 of 19 July, general for the defence of consumers and users, shall take the measures and initiatives needed to be established the obligatory nature of the coverage of the risks that may arise from the exercise of the activities regulated by this title for people and goods.

Chapter VII economic regime article 91. Regime of activities regulated by the law.

1. activities for the supply of gaseous fuels will be economically paid in the manner provided for in this law surcharge to fares, tolls and cannons to be determined by the Government and prices paid by eligible customers, where applicable.

2. by regulation the economic regime of rights is established by rush, hire accountants and other necessary costs related to the facilities. The rights to pay for the rush will be unique for the entire territory of the State on the basis of the maximum flow rate requested and the location of the supply. This income will be considered, for all purposes, remuneration of distribution activity.

3. the autonomous communities, with respect to distributors who develop their activity within its territorial scope, establish the rights of high economic regime, as well as the other costs of services necessary to meet the requirements of the user supplies.

Article 92. Criteria for determination of rates, tolls and fees.

1 the rates, tolls and charges should be established in such a way that its determination to respond together to the following criteria: to) ensure recovery of investments made by holders in the period of useful life of the same.

(b) allow a reasonable return of invested financial resources.

(c) to determine the system of remuneration of costs in such a way that will encourage efficient management and a productivity improvement that must be passed in part to users and consumers.

(d) do not produce distortions between supply rates regime and the excluded thereof.

2. the system for the determination of the rates, tolls and fees shall be fixed for periods of four years, proceeding to a review and adaptation, where appropriate, to the situation foreseen for the next period in the last year.

3. companies that carry out the activities regulated by this title shall provide the Ministry of industry and energy, how much information is needed for the determination of the rates, tolls and fees. This information will also be available to the autonomous communities that request it with regard to its territorial scope.

Article 93. Rates for gaseous fuels.

The Minister of industry and energy by ministerial order, prior agreement of the delegate of the Government Commission for Economic Affairs, will dictate the provisions necessary for the establishment of the rates for sale of natural gas, manufactured gas and liquefied gases of oil by pipeline to the final consumers, as well as the prices for the sale of natural gas to distributors, establishing concrete values of such fees and prices, or a determination and the same auto-update system.

Sale rates to users, will have the character of maximum and will be unique for the entire national territory, without prejudice to their specialties.

Article 94. Tolls and fees.

1. the Minister of industry and energy by ministerial order, prior agreement of the delegate of the Government Commission for Economic Affairs, shall adopt the provisions necessary for the establishment of the tolls and fees for basic services from access by third parties, establishing the specific values of such tolls or a determination and automatic updating system. The aforementioned tolls and fees of the basic services of access by third parties will have the character of Maxima.

2. the tolls and fees corresponding to the use of plants in regasification, storage and transportation networks will be only without prejudice to their specialties by levels of pressure and use of the network.

3. the tolls for the use of distribution networks will be unique and will be determined according to the pressure levels and the characteristics of consumption.

4. the enterprises transporters and distributors shall be notified to the Ministry of industry and energy charges that effectively apply. This information will also be available to the autonomous communities that request it with regard to its territorial scope.

The differences between the approved maximum tolls and that, where appropriate, carriers apply and distributors below them will be supported by them.

5. the procedure of allocation of losses of natural gas incurred on its transport and distribution shall be determined by regulation taking into account pressure levels and forms of consumption.

Article 95. Taxes and tributes.

1. the rates and tolls approved for each category of consumption shall not include value added tax.

Where gas activities were taxed with regional or local taxes, whose share is obtained by using rules not uniform for the whole of the national territory, to the resulting gas price, oalatarifa, you may be a territorial supplement, which may be different in each autonomous community.

2 to ensure that there is greater transparency in the supply of gas prices, are analysed in the billing to the user, in the form that statutorily is determined, unless the amounts for the fee and the taxes that are payable in respect of the consumption of gas, as well as territorial supplements when they correspond.

Article 96. Collection and payment of rates and prices.

The rates for gaseous fuels will be charged by the companies that carry out activities of distribution of gas through its sale to consumers, and must give entered amounts the application that proceed as laid down in this law.

Regulations will establish the procedure for payment should follow consumers qualified for their acquisitions of natural gas. In any case, qualified consumers must also pay the costs of the activities necessary for the supply of gaseous fuels and the costs of diversification and security of supply, where appropriate, in the corresponding proportions.

Article 97. Liberalization of prices.

1. where the market situation make it advisable, the Government may agree to liberalization, total or partial, of the rates, tolls and fees covered in this chapter.


2. exceptionally, the Government may establish maximum gas prices applicable by resellers to sales made to qualified consumers, when the lack of development of the gas market or market dominance situations make it advisable.

Chapter VIII security of supply article 98. Security of supply.

1. carriers embodying gas system will be required to maintain a minimum stock of security equivalent to thirty-five days of strong sales to distributors to supply customers in rates regime.

Marketers of natural gas shall maintain a minimum stock of security equivalent to 35 days of strong sales.

Qualified consumers who make use of the right of access and are not supplied from a marketer authorized, shall maintain a minimum stock of security for thirty-five days of their strong consumption.

2. this obligation may be fulfilled by the subject bound with gas from their property or renting and hiring, where appropriate, the corresponding storage services. The Ministry of industry and energy may, depending on the availability of the system, increase the number of days of strategic storage up to a maximum equivalent to sixty days of sales firm.

Article 99. Diversification of supplies.

1. carriers embodying gas system and marketers must diversify its supplies when the sum of all of them the proportion of those from a country exceeds the 60 by 100.

The Ministry of industry and energy, develop regulations the conditions for the fulfilment of this obligation according to the market situation and may modify the percentage referred to in the preceding paragraph, to the alzaoalabaja, depending on the evolution of the international natural gas markets.

2. in the terms to be determined by regulation, the Ministry of industry and energy may require similar obligations of diversification of supply to the established in the previous point consumers qualified for the part its not acquired consumer to marketers when, by its volume, and origin, can negatively influence the balance of supplies to the domestic market.

3 will be exempted from the obligation of diversification acquired gas supply addressing consumption facilities that have guaranteed alternative supplies of other fuel.

Article 100. Control by the administration.

The competent administration may inspect compliance with the requirements and conditions laid down in the preceding articles, security and diversification applying, where appropriate, how much information is needed.

Article 101. Emergency situations.

1. the Government shall establish emergency conditions in which use of strategic reserves of natural gas referred to in this title, for the required maintenance will be.

2 the Government supply shortages or those that may be threatened the security of persons, apparatus or installations or the integrity of the network may take in the field, with the duration and the exceptions which are determined, inter alia, any or some of the following measures: to) limit or temporarily modify the gas market.

(b) establish special obligations in respect of minimum stocks of natural gas safety.

(c) suspend or temporarily modify the access rights.

(d) modify the General conditions of regularity in supplying with general or referred to certain categories of consumers.

(e) subject to administrative authorization sales of natural gas for consumption abroad.

(f) any other measures, which may be recommended by international agencies, of which Spain is a party or determined in implementation of those conventions in which it participates.

In relation to such measures is determined, also, the remuneration arrangements applicable to those activities that would be affected by measures taken to guarantee, in any case, a balanced allocation of costs.

Article 102. Occupation of the heritage, public domain and public areas.

1. the holders of concessions, permits or authorizations, those referred to in article 103.2 of the present law and in the same cases that the there referred to, shall have the right to occupation of the heritage, public domain and public areas.

2. the authorization of specific occupation of the heritage, public domain and public areas will be agreed by the competent public administration body holder of those assets or rights.

The conditions and requirements established by the administrations holders of property and rights for the occupation of the same shall be, in any case, transparent and non-discriminatory.

3. without prejudice to the application of the above paragraphs earlier in the authorizations of occupation of property or rights of local ownership shall apply the provisions of the legislation of local regime.

Title V rights of occupation of the public domain, compulsory purchase, easements and limitations to property article 103. Declaration of public utility.

1 are declared of public utility for the purposes of compulsory expropriation and exercise of the servitude of passage the following facilities: a) the facilities and services required for the development of the activities of research and exploitation referred to in title II.

(b) the facilities of refining, both newly built as extensions of the existing facilities of transport by pipeline and storage of petroleum products, as well as the construction of other fixed means of transportation of liquid hydrocarbons and their storage facilities.

(c) the facilities referred to in title IV of this law.

2. holders of concessions, permits or approvals for the development of the above-mentioned activities or for the construction, modification or expansion of facilities necessary for them will enjoy the benefit of compulsory expropriation and temporary occupation of property and rights that require facilities and necessary services, as well as the easement of passage and limitations of domain, where that is necessary to access roads lines of conduction and distribution of hydrocarbons, including necessary to cater for the surveillance, maintenance and repair of the facilities.

Article 104. Application for recognition of public utility.

1. for the recognition of the public utility of the facilities referred to in the previous article, it will be necessary that the undertaking in question requests it, including a specific and individualized relationship of goods or rights which the applicant deems necessary expropriation or occupation.

2. the request shall be submitted to public information and report of the affected organs shall be sought.

3 is finished processing, the recognition of the public utility shall be agreed by the Ministry of industry and energy, if the authorization of installation corresponds to the State, without prejudice to the competence of the Council of Ministers in the event of opposition from bodies or other entities of public law, or by the competent body of the autonomous communities in other cases.

Article 105. Effects of the Declaration of public utility.

The Declaration of public utility will be implied in any case the occupation of goods or acquisition of affected rights need and will involve urgent occupation for the purposes of article 52 of the law on compulsory expropriation of December 16, 1954.

Article 106. Suppletive law.

In relation to the matters regulated by this title shall be of supplementary application in general on compulsory expropriation law and the Civil Code where appropriate.

Article 107. Easements and permits passage.

1. easements and authorizations of step to be laid down in accordance with the provisions of this chapter taxed goods in the manner and to the extent laid down in this law shall be governed by the provisions therein and its development provisions in the regulations referred to in the preceding article.

2. easements and permits passage shall include, where appropriate, occupation of the underground facilities and pipeline depth and other characteristics which mark regulations and ordinances.

3. easements and permits will also understand the right step and access, and the temporary occupation of the land or other goods needed for surveillance, maintenance and repair of installations and pipelines.

4. conditions and limitations that must be imposed in each case for safety reasons will apply in accordance with regulations and technical standards that are handed down to the effects.

Title VI infractions and sanctions Article 108. Infractions.

1 are administrative acts and omissions which are classified in the following articles.

2. the administrative offences established under this law shall not affect responsibilities civil, criminal or other nature that may be incurred by the holders of the companies that develop the activities referred to in.

Article 109. Very serious offences.

1 they are very serious infringements:


(a) carrying out activities regulated by this Act or the construction, enlargement, exploitation or modification of facilities affected to them without the necessary concessions, administrative authorization or registration in the corresponding registry where appropriate or non-compliance with regulations and conditions of the same when manifest danger to persons or property.

(b) the use of instruments, appliances or items subject to industrial safety without complying with the rules and technical obligations that for security reasons should collect appliances and installations related to the activities covered by this law when they behave danger or damage serious to people, property or to the environment.

(c) the refusal to supply gas by pipeline to consumers in rate in accordance with title IV regime.

(d) the refusal to admit inspections or regulatory verifications agreed in each case by the competent administration or obstruction to their practice.

(e) the irregular application of prices, rates or tolls of the regulated in this law.

(f) any fraudulent manipulation aimed to alter the price or the quality of petroleum products or combustible gases or supplied quantities measurement.

(g) the default by the operators to the wholesale of oil products of the obligations that are subtracted from the provisions of paragraph 3 of article 43.

(h) carrying out incompatible activities in accordance with the provisions of this law.

(i) the refusal or unjustified third-party access to facilities in the assumptions that this Act regulates alteration.

(j) the failure to comply with the instructions given by the competent authority where prejudice is to the functioning of the system.

(k) failure to comply with the rules on minimum stocks of security established in titles III and IV and the breach of the regulations on diversification of supplies established in title IV when they pose a significant alteration of quoted stocks or diversification, regimes considered such breaches in monthly periods.

(l) the actions or omissions that involve failure to comply with the measures established by the Government in application of the provisions in the law on shortages of supply in titles III and IV by those who perform activities regulated by this Act and have significant incidence in the above-mentioned provision.

2. equally, will be very serious offences serious breaches of the following article when during the three years prior to his Commission had been imposed on the offender sanction signed by the same type of infringement.

Article 110. Grave breaches.

They are serious breaches: to) activities regulated by this Act or the construction, extension or modification of facilities affected to them without the necessary concession or administrative authorization or non-compliance with regulations and conditions which do not have the consideration of infringement very grave in accordance with the previous article.

(b) interruption or unjustified suspension of activity come performed by concession or administrative authorization.

(c) the use of instruments, appliances or items subject to industrial safety without complying with the rules and technical obligations that for security reasons should collect appliances and installations related to activities subject to this law when they are not consideration of very serious offences under the preceding article.

(d) the unjustified refusal to supply petroleum products or combustible gases to consumers and users that not be applied administratively approved rates.

(e) breach of many formal obligations be imposed to those activities supply the retail of petroleum products or combustible gases by channeling in guaranteeing the rights of consumers and users.

(f) the marketing of liquid hydrocarbons under a brand image that does not correspond with the real origin and identity of the same.

(g) the failure to comply with the regulations on stock minimum of security established in titles III and IV and the breach of the regulations on diversification of supplies established in title IV when it is not violation very serious in accordance with the previous article, considered such breaches in monthly periods.

(h) the acts or omissions which involve failure to comply with the measures established by the Government in application of the provisions in the law on shortages of supply in titles III and IV by those activities are regulated in the present law and have no appreciable impact in the quoted provision.

(i) the failure to comply with the instructions given by the competent authority when not be prejudice to the functioning of the system.

(j) the occasional and isolated refusal to facilitate administration or the National Commission for energy information claimed as laid down in this law.

(k) the violations repeated in the referral of information and documentation obligations.

Article 111. Minor offences.

They constitute minor offences those infringements of precepts of forced observance included in this Act which does not constitute a serious or very serious, offences under the provisions of the preceding two articles.

Article 112. Graduation of sanctions.

For the determination of the corresponding penalties shall take into account the following circumstances: to) the hazards resulting from the infringement for the life and health of people, the security of things and the environment.

(b) the importance of the damage or damage caused.

(c) the damage produced in the continuity and regularity of supply to users.

(d) the degree of participation and the benefit obtained.

(e) the intentionality or repetition in the Commission of the offence.

(f) the reiteration by the Commission at the end of a year of more than one violation of the same nature, as it has been declared by firm resolution.

Article 113. Sanctions.

1 violations typified in the preceding articles shall be punished: a) very serious offences, a fine from 100.000.001 up to 500,000,000 of pesetas.

(b) serious offences, by a fine of from 10.000.001 to 100,000,000 pesetas.

(c) minor offences, a fine of up to 10,000,000 pesetas.

2. where as a result of the offence obtained a quantifiable benefit, the fine may reach up to twice the benefit earned.

3. the amount of the sanctions will graduate according to criteria of proportionality and circumstances specified in the preceding article.

4. the Commission of a serious offence may be associated with revocation or suspension of the administrative authorization and the consequent temporary disqualification for carrying on the business for a maximum period of one year. Revocation or suspension of authorizations will be granted, in any case, by the competent authority to grant them.

5. the application of the sanctions provided for in this article, shall be without prejudice to other legally enforceable responsibilities.

6. the penalties imposed for offences very serious, once firm, they will be published in the form determined by law.

For this purpose, the corresponding Administration will put the facts to the attention of the competent.

Article 114. Periodic penalty payments.

The competent authority, regardless of the penalties that apply, may impose periodic penalty when continue offending and conduct in the case not to attend cessation in the same requirement.

The fines imposed for an amount that shall not exceed 20 per 100 of the penalty fixed for the offence committed.

Article 115. Sanctioning procedure.

The procedure for the imposition of sanctions shall be subject to the principles of articles 127 to 138 of the law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure, yalodispuesto in the Royal Decree 1398 / 1993, of 4 August, which approves the regulation of the procedure for the exercise of the powers to impose penalties or corresponding regional rules without prejudice to regulations establish specialties of procedure for the imposition of sanctions provided for in this law.

Article 116. Powers to impose sanctions.

1 competition for the imposition of sanctions will be determined by the competence to authorize the activity in the exercise of which the offence was committed, or by the competition to authorize the corresponding facilities.

2. at the level of the General Administration of the State, very severe sanctions will be imposed by the Council of Ministers and the grave by the Minister of industry and energy. The mild sanctions shall be responsible to the Director general of the energy.

3. in the area of the autonomous communities, it will be as provided in its own regulations.

Article 117. Prescription.

Very serious offences provided for in this chapter shall be extinguished after the three years of its Commission; the grave, at the age of two, and the mild, at six months.

Sanctions imposed for very serious misconduct shall be extinguished after three years; those imposed for serious misconduct, at age two, and those imposed for minor misconduct, a year.

ADDITIONAL provisions first. Canon of surface.

Regulated in title IIA Research and exploration permit holders will be required to the payment of the fee of surface.


(a) the barrel is required per hectare and year according to the following scales: scales first Pesetas permits research 1. During the period of validity of the permit 10 2. During each extension 20 scale second Pesetas concessions of exploitation 1. During the five first years 250 2. During the following five years 700 3. During the following five years 1,850 4. During the following five years 2,300 5. During the following five years 1,850 6. During the following five years 950 7. During overtime 700 b) surface fees specified above are shall accrue in favour of the proprietor of the public domain, the first day of January of each calendar year, in terms of all permits or concessions existing at that date, and must be satisfied during the first quarter of the same.

c) when research permits or concessions of exploitation are awarded after the first of January, in the year of the grant shall be paid as canon part of annual fees that proportion corresponds to the time that mediate from the date of the grant until the end of the calendar year. In these cases, the barrel will accrue the day of the granting of the permit or concession and will have to be fulfilled within the period of ninety days from this date.

(d) the modification of the canons of surface shall be carried out by joint decree of the ministries of industry and energy and of economy and finance. The modification shall be carried out according to the evolution of the market in the sector of research and exploitation of hydrocarbons.

The second. Termination of the monopoly of oil concessions.

The concessions of oil monopoly for the supply of gasoline and automotive diesel kept under cover in the first additional provision of law 34/1992 of 22 December are definitely extinct. The object of these concessions activities continue to grow in the manner regulated in title III.

Third. Agents of equipment suppliers and managers of service stations.

1 former agents of equipment suppliers and managers of stations referred to in the additional provisions second and third of the law 34/1992, of 22 December, whose public-law relationship was extinguished, able to stay on the exploitation of the point of sale, contract of supply of private law with the entity that holds Sunday ownership of the installation and the exclusive delivery rights.

2. insofar not formalize written agreement on the conditions of the exploitation of the point of sale and supply of petroleum products with the Sunday headline of the installation, will continue to apply the conditions in force at the time of the termination of the relationship of public law.

3. in any case, the former agents and managers shall have the right to remain in operation for the remaining term to the initially granted and will receive a Commission for the sale of products on behalf of the owner of the installation which may not be less than the established relations between the holder and the agents that exploit other facilities of your property as tenants.

4. the spouse and children may subrogate the exploitation in the cases and conditions provided for in the applicable regulations for transformed relations.

-Fourth. Authorizations granted under cover of law 34/1992 of 22 December.

Authorisations granted pursuant to that established in law 34/1992, of 22 December, or declared "ex lege" by the same will remain and will take full effect without ratification, in what is not contrary to the provisions of this law.

Quinta. Oil installations for the use of the armed forces.

Inspections and reviews of the oil facilities for use by the armed forces, that are located within the area and facilities of interest to national defense, will be carried out by the relevant bodies of the armed forces.

6th. Extinction of concessions.

1. to the entry into force of this law, all concessions for activities included in the supply of fuel gases by channeling public service are extinct.

These concessions are replaced full administrative authorizations from those laid down in title IV of this law that enable its holder to exercise activities, through the corresponding facilities, which constitute the object of the extinct concessions.

2 the above authorizations will be indefinite being expressly extinguished the reversal of installations referred to in article 7.c) of law 10/1987, of 15 June.

Seventh. Maritime transport of hydrocarbons, liquid and solid.

The maritime transport of hydrocarbons will be adjusted in any case to the regime established by the Act 27/1992, of November 24, the State ports and merchant marine, as well as provisions of its implementing regulations.

Octave. Rejection of resolutions.

Requests for administrative decisions that are issued pursuant to this law may understand ignored, if not express resolution within the period which the effect is established or determined its development provisions.

Novena. Update of the amount of the sanctions.

The Government, by Royal Decree, shall periodically update the amount of the penalties laid down in Title VI taking into account changes in consumer price indices.

Tenth. Intervention of a company.

1 when the breach of the obligations of the companies that carry out activities and functions regulated by this law may affect the continuity and security of supply of hydrocarbons, and in order to ensure its maintenance, the Government may agree intervention of the corresponding company in accordance with the provisions of article 128.2 of the Constitution adopting appropriate measures for this purpose.

For this purpose shall be causes of intervention of a company: to) the suspension of payments or bankruptcy of the company.

(b) the irregular management of activity when it is attributable to him and can result in its stoppage.

(c) the serious and repeated lack of proper maintenance of the facilities which endangers the safety of them.

2. in the above cases, if the companies that develop activities and functions or that referred to in this law, make it exclusively through installations whose authorization is an autonomous Community competence, the intervention will be agreed by this.

Eleventh. National Energy Commission.

The first. Legal nature and composition.

1. it is no national Commission of the electrical system as a regulator of the electricity system, the entry into force of this law.

2 is created the National Energy Commission as regulator of the operation of energy systems, having for object to ensure effective competition therein and for the objectivity and transparency of its operation, for the benefit of all subjects that operate in these systems and consumers.

For the purposes of the provisions of the preceding paragraph means energy systems, the electricity market, as well as the markets of both liquid and gaseous hydrocarbons.

The Commission is set up as a public body with legal personality and own patrimony, as well as full capacity to act. The Commission will hold its activity to the provisions of law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure, when exercise administrative powers, the legislation of the public administrations contracts its procurement of goods and services, submitting elsewhere in its activity to private law.

Personnel who provide services in the National Energy Commission will be linked to it by a relationship subject to the rules of labour law. Of the same, with the exception of the Executive nature, selection is by public announcement and according to procedures based on the principles of equality, merit and ability. Such personnel shall be subject to the incompatibilities regime established a general rule for the staff at the service of the public administrations.

The National Energy Commission shall annually draw up a preliminary draft budget with the structure indicated by the Ministry of economy and finance and forward it to this for his elevation to the agreement of the Government and subsequent referral to the Cortes Generales integrated into the General State budget.

The economic and financial control of the National Energy Commission will be held by the General intervention of the administration of the State, without prejudice to the functions that correspond to the Court of Auditors.


The National Energy Commission will be attached to the Ministry of industry and energy, which will exercise control of efficiency of its activity and shall be governed by the provisions of this law and the implementing rules handed down, by the provisions of the General budget law which will be applied and the law 6/1997 April 14, organization and functioning of the General Administration of the State.

3. the Commission shall be governed by a Board of Directors, composed of the President, who will hold the legal representation of the Commission, by eight vowels and a Secretary who will work with voice but without vote.

The Minister of industry and energy, the Secretary of State for energy and mineral resources, or senior official of the Ministry who delegated, may attend the meetings of the Board of Directors, with voice but without vote, when they may deem it necessary in view of the issues included in the corresponding order of the day.

4. the Chairman and the members shall be appointed among persons of recognized competence technical and vocational, by Royal Decree, on a proposal from the Minister of industry and energy, prior hearing of the same and discussion in the competent Committee of the Congress of Deputies, to verify the compliance by applicants of the conditions set forth in this section.

The President and the members of the National Commission of energy shall be appointed for a period of six years and may be renewed for a period of the same duration.

However, the National Energy Commission partially renew its members every three years. Renewal affect Alternatively five or four of its members as appropriate.

If during the period of its mandate there is cessation of one of its members, its successor will cease at the end of the mandate of his predecessor. When this last dismissal occurs before one year had elapsed since the appointment, it shall not apply the limit provided for in the second paragraph of this section may be renewed the mandate on two occasions.

5 the Chairman and the members shall be terminated for the following reasons: a) expiry of the term of his mandate, continuing duties until the appointment of new members coming to his replacement.

(b) resignation accepted by the Government.

(c) permanent disability for the exercise of their functions, incompatibility produced subsequent to his appointment as a member of the Commission or conviction by fraudulent offense prior instruction of record by the Ministry of industry and energy, serious breach of their obligations and termination by the Government, a reasoned proposal of the Minister of industry and energy.

6. the Chairman and the members of the National Energy Commission will be subject to the incompatibilities regime established for the senior management of the General Administration of the State. To stop in the office and two years later, may not exercise any related energy sectors professional activity. Regulations will determine the financial compensation that corresponds to perceive under this limitation.

7 the National Commission of energy resources will be integrated by: a) goods and values that constitute its heritage, products and incomes from the same.

(b) the revenues generated as laid down in sectoral legislation.

(c) where appropriate, the transfers made out of the State budget.

Second. The Commission advisory bodies.

1. as the Commission advisory bodies will constitute two advisory councils presided over by the President of the National Commission of energy, with a maximum of 36 members, the Advisory Board of electricity, and 34 members, Advisory Board of hydrocarbons.

Electricity Advisory Board will be composed of representatives of the General Administration of the State, the Consejo de Seguridad Nuclear, the autonomous communities, the companies in the electrical sector, operators of the market and the system, consumers and users and other social agents and defense of the preservation of the environment.

The Advisory Council of hydrocarbons will be integrated by representatives of the General Administration of the State, the autonomous communities, the petroleum and gas companies, distributors and owners of facilities to the public, the Corporation of strategic reserves of petroleum products, consumers and users and other stakeholders and defense of the preservation of the environment.

2. Advisory Councils may inform actions regarding carrying out the National Energy Commission in the exercise of their functions. This report will be to turn mandatory on actions to develop functions running second, third, fourth and sixth.

3. at the heart of each one of the Advisory Councils will be created a Standing Committee which shall facilitate the work of the Advisory Councils.

The Standing Committee of the Consultative Council of electricity will be composed of 12 members, in accordance with the following participation: six representatives of the autonomous communities, a representative of the production companies, a representative of the distribution companies, as well as a representative of the market operator and a representative of the system operator, a representative of the General Administration of the State and a representative of qualified consumers.

The representatives of the autonomous communities shall be appointed in the following manner: two of the autonomous communities with higher level of electricity production; two of the autonomous communities with the highest level of per capita electricity consumption, and the remaining two appointed for two-year periods between those regions that are not represented on the basis of the above criteria, in the order which arises from its highest level of production and power consumption.

The Standing Committee of the Consultative Council of hydrocarbons will be composed of 13 members, in accordance with the following participation: a representative of the General Administration of the State, six representatives of the autonomous communities, a representative of operators to the wholesale of oil products, a representative of the distributors to the retail of petroleum products, a representative of gas carriers a representative of gas distributors, a representative of the marketers of gas and a representative of qualified consumers.

The representatives of the autonomous communities in the Permanent Committee of the Consultative Council of hydrocarbons, shall be appointed in the following manner: two of the autonomous communities with higher levels of consumption of natural gas, two of the autonomous communities with higher levels of consumption of petroleum products and the remaining two shall be appointed for two-year periods between those autonomous communities that are represented on the basis of the above criteria , according to the reverse order resulting from applying the above criteria.

Third party. Functions of the National Energy Commission.

1. the National Energy Commission will have the following functions: first: act as an advisory body to the Administration in energy.

Second: participate, through proposal or report, in the process of elaborating general provisions affecting the energy markets, and in particular, under the regulatory development of this law.

Third: participate, through proposal or report, in the energy planning process.

Fourth: participate, through proposal or report, in the process of elaboration of the projects on determination of rates, tolls, and remuneration of the energy activities.

Fifth: report on new energy facilities authorization records when they are competence of the General Administration of the State.

Sixth: issue reports requested him by the autonomous communities when they deem it appropriate in the exercise of its powers in energy matters.

Seventh: issuing circulars of development and implementation of the rules contained in the royal decrees and the orders of the Ministry of industry and energy handed down development of the energy legislation, provided that these provisions enable you express mode to do this.

These provisions will receive the designation of circular and will be published in the «Official Gazette».

Eighth: inspect, at the request of the General Administration of the State or of the competent autonomous communities, the technical conditions of the facilities, compliance with the requirements laid down in the authorizations, the economic conditions and actions of subjects insofar as they may affect the application of the rates and criteria of remuneration of the energy activities, as well as the effective separation of these activities when it is required.

Ninth: act as arbitration body in the conflicts that arise between the subjects that carry out activities in the electricity sector or hydrocarbons.

The exercise of this arbitral function will be free and will not be public.

This feature for arbitration, which will be voluntary for the parties, shall be exercised in accordance with law 36/1988, of 5 December, arbitration, and with the regulatory norm approved by the Government on the corresponding arbitration procedure.

Tenth: determine the subjects whose actions are attributable shortcomings in the supply users proposing measures that would be taken.


Eleventh: remember the initiation of the disciplinary proceedings and perform the same instruction, when they are within the competence of the General Administration of the State and report, when required to do so, those disciplinary proceedings initiated by the different public administrations, without prejudice to the powers conferred on the Corporation's strategic reserves of petroleum products in article 52.4 of the present law.

Twelfth: ensure that the subjects operating in the energy markets carried out its activity with respect for the principles of free competition. For these purposes, the Commission detected the existence of signs of restrictive competition practices prohibited by law 16/1989 of 17 July, competition, it shall inform in the service of competition, providing all the elements in fact at hand and, if necessary, a non-binding opinion of the score that deserve you the facts.

Thirteenth: resolve the conflicts that are posed to you regarding contracts for third-party access to transport networks and, where applicable, distribution, in the terms established by law.

Fourteenth: authorize contributions made by companies with activities that are regulated in any entity carrying out activities of a commercial nature. They may only deny authorizations as a consequence of the existence of significant risks or negative, direct or indirect effects on the activities regulated by this law, and for these reasons may dictate authorizations that express conditions in which the above operations can be made.

Fifteenth: mandatorily report concentrations of enterprises or taking control of one or several energy companies that perform activities in the same sector when the same shall be submitted to the Government for its decision, in accordance with the legislation on competition.

Sixteenth: remember your organization and internal functioning, select and recruit its personnel fulfilling the requirements established in the regulations on the matter within the scope of the General Administration of the State.

Seventeenth: prepare annually a report of activities that will raise the Government for their referral to the Cortes Generales.

Eighteenth: perform other functions that are attributed by laws or regulations the Government entrusted a proposal from the Minister of industry and energy.

The National Energy Commission reports provided for in the second, third, fourth and fifth functions of this section will be mandatory.

For proven exceptional reasons may apply the procedure of urgency, whereby deadlines will be reduced by half.

2. in relation to the electricity sector will be up to the Commission, in addition to the functions referred to in the preceding paragraph, the following: first: carry out the liquidation of the costs of transport and distribution of electric power, the permanent costs of the system and those other costs established for the whole of the system when its liquidation is expressly assigned to them.

Likewise, it shall every six months to the Ministry of industry and energy on the liquidation of energy carried out in collaboration with the system operator the market operator.

Second: resolve the conflicts that are posed him in relation to the economic and technical management of the system and the transport.

3. in relation to the gas sector, the Commission, in addition to the functions referred to in paragraph 1 above, shall the resolution of conflicts that are posed to you in relation to the management of the system.

4. the National Energy Commission be sought subjects operating in the energy markets the information required in the performance of their duties. To do so, the Commission will issue circulars, which shall be published in the «Official Gazette», in which the content of the information that will be requested, will be exposed in a detailed and concrete way specifying justified way function for whose development is precisely such information and use that intends to take it.

The National Energy Commission may make inspections as it considers necessary in order to confirm the veracity of the information that is provided to you pursuant to its circular.

The data and information obtained by the National Energy Commission in the performance of its functions, which are confidential matters protected by the secret commercial, industrial or statistical, being may only be assigned to the Ministry of industry and energy and the autonomous communities in the field of its competences. The staff of the National Commission of energy who are aware of these data shall be required to keep stealth for them.

Entities that must supply such data and information may be what some of them considered significant commercial or industrial, whose broadcast could affect them, and to which claim confidentiality to any persons or entities that are not the National Committee on energy, the Ministry of industry and energy or the autonomous communities, prior timely justification.

The National Energy Commission will decide, reasoned way, the information which, according to current legislation, are exempted from commercial or industrial secrecy and on the covered by confidentiality.

Likewise, the National Energy Commission will have access to records covered by State energy legislation.

5. against decisions taken by the National Committee on energy in the performance of the duties referred to in the numeros1 and 2 of this paragraph, and against their acts of procedure in the same materials that determine the impossibility to continue the procedure or produce helplessness, may bring an ordinary appeal to the Minister of industry and energy.

The resolutions that are handed down in the exercise of the second function of number 2 of this paragraph and circulars that relate to matters of information, that will end the administrative excepted pursuant to the preceding paragraph.

Twelfth. Financing of the National Energy Commission.

1. the National Energy Commission will assume the obligations and the management of those dossiers that were outstanding in the National Commission on the electric system, referred to in law 54/1997, of 27 November, in the electrical sector, as well as the remuneration that corresponds, in accordance with the aforementioned law, such Commission.

2 a the effects of provisions of this Act, the funding of the National Energy Commission will integrate the following concepts: to) the unitary amount to be determined for products sold in the domestic market by the operators referred to in article 42 of this law for this purpose.

(b) the surcharge that settles on the tolls or rates, which in the case of the electricity sector will be considered permanent cost of the system for this purpose.

Thirteenth. Modification of law 6/1997 of 14 April.

Amending the first paragraph (1) of the additional provision ten of law 6/1997, of 14 April, organization and functioning of the General Administration of the State: «1. La Commission national of the securities, the Council for Nuclear safety, the ente Público RTVE, universities not transferred, the data protection agency, the consortium of the Zec» the National Energy Commission and the Commission of the market of telecommunication shall be governed by legislation specific and supplementary by this law.»

Fourteenth. Provincial tax regimes.

The regulations contained in this Act are understood without prejudice to existing provincial tax regimes in the historical territories of the Basque country and in the region of Navarre.

15th. Cooperative societies.

Cooperative societies can only perform the activities of distribution to the retail of petroleum products within the meaning of article 43 of this law with third non-members, through the creation of an entity with legal personality to which it is applicable the general tax system.

Sixteenth. Biofuels.

1 are considered biofuels products below are related and which are intended for use as fuel, directly or mixed with conventional fuels: a) ethyl alcohol produced from agricultural products or plant origin (bioethanol) and used as such or after chemical modification.

(b) methyl alcohol (methanol), obtained from agricultural or vegetable products, whether it be used as such or after chemical modification.

(c) vegetable oils.

(d) vegetable oil, chemically modified.

2. for the purposes of this Act, the distribution and sale of these products shall be governed by the provisions of title III thereof.

17th. Law 54/1997, of 27 November, in the electricity sector.

1. amending paragraph 1 of article 12 of law 54/1997 of 27 November, the electricity sector, which is drawn up in the following terms: "1. activities for the provision of electrical energy carried out in the territories island or extrapeninsulares shall be subject to a singular regulations that cater to the specific needs arising from their territorial location» agreement with the communities or autonomous cities affected.


2. It includes a 'fifteenth additional provision. Insular electrical systems and extrapeninsulares», in law 54/1997, of 27 November, the electricity sector, which is worded in the following terms: "1. the electrical planning, which will have a nature indicative except in what refers to transportation facilities, in terms of affecting territories island or extrapeninsulares, will take place in accordance with the communities or autonomous cities affected."

2. in the case that the island or extrapeninsulares territories to be made certain risk for the delivery of the supply of electricity or situations that may arise threat to the physical integrity or security of persons, apparatus or installations or for the integrity of the network of transport or distribution of electricity the adoption of the measures provided for in article 10 of this law will correspond to the communities or autonomous cities affected, provided that such measure only affects their respective territorial scope. Such measures will not have economic impact in the electrical system, except that mediate prior agreement of the Ministry of industry and energy.

3. the determination of the Manager or managers of the network of the electrical areas located in insular and extrapeninsular territories will correspond to the respective regional administration."

3 include a third paragraph in the fifteenth transitional provision. Insular systems and extrapeninsulares, Law 54/1997 of 27 November, in the electricity sector, which is drawn up in the following terms: «the period of transition to competition referred to in paragraph first will not prevent the granting by the competent administration of permissions of electric power production facilities provided for in article 21 of this law.»

Eighteenth. Consejo de Seguridad Nuclear.

Amending article 6 of the law of creation of the Consejo de Seguridad Nuclear, in the following terms: «President, directors and Secretary general of the Council of Nuclear security charges are incompatible with any other fees or role, remunerated or not, perceiving exclusively, for the duration of its mandate or function, the remuneration that is fixed in attention to the importance of its role. To stop in the office and two years later, you may not exercise any related to nuclear safety and radiation protection professional activity. Regulations will determine the financial compensation that corresponds to perceive under this limitation.»

19th. Rights of way.

The easement of passage established in favour of the basic network of transport, transport networks and gas distribution networks, including those lines and telecommunication equipments that they can spend, so if they are to service the gas exploitation, as for public telecommunications and service, without prejudice to the fair price that, in the case It could match, aggravating this servitude.

Similarly, existing authorisations referred to in article 103.2 of the Act, include those lines and telecommunication equipments that they can spend, with the same objective scope and autonomy resulting from the preceding paragraph.

TRANSITIONAL provisions first. Application of Act 21/1974, June 27.

Research permits and concessions of exploitation granted under cover of law 21/1974, June 27, about the status of the investigation and exploitation of hydrocarbons, or earlier, are governed by this Act, except for express manifestation of holders, their desire to benefit from the regulation laying down this law for such permits and concessions.

The second. Applicable regulatory provisions.

Notwithstanding provisions of the repealing provision unique, insofar as not issued rules for the development of this law shall remain in force, in what is not contrary to, the regulations applicable in matters that constitute its object.

Third. Technical instructions.

The Government, within a maximum period of one year, by Royal Decree, will adopt the complementary technical instructions provided for in the second subparagraph of article 43.2 of this law, and meanwhile shall apply to any natural or legal person carrying out the activities provided for in this rule, the complementary technical instructions currently in force, depending on the type of activity concerned.

For these purposes, future complementary technical instructions are respectively referred to two distinct one-sided assumptions installations without delivery vehicles and on the other hand, those facilities that are carried out supplies to vehicles, notwithstanding that in each of these cases are treated differentially, according to objective criteria, the various types of installation according to the different concurrent technical elements in each case. Still, during this transitional period, the statement complementary technique MI-IP 03, «Oil installations for own use», approved by Royal Decree 1427 / 1997, of 15 September, shall apply to the entities of associative basis of transport, considering them included in section 2.1. K) of the aforementioned technical complementary instruction, provided that the supplies that correspond to a single type of fuel or fuel She is carried out exclusively in vehicles of its members pertaining to the activity of public transport and facilities not to refuel more than two vehicles simultaneously.

-Fourth. Prices of liquefied gases as petroleum.

The Government, through a formula to be determined by regulation, may establish maximum selling prices to the public of packaged petroleum liquefied gas, insofar as the conditions of competition and competition in this market will not be considered sufficient. The maximum price will incorporate the distribution costs at home.

Quinta. Qualified consumers.

1. for the purposes of the provisions of article 60, they will be considered qualified consumers those consumers whose facilities, located on a site, consumption fits in every moment the following timetable: those whose consumption is equal to or greater than 20 million Nm3, the entry into force of this law.

Those whose consumption is equal to or greater than 15 million Nm3, on 1 January of the year 2000.

Those whose consumption is equal to or greater than 5 million Nm3, on 1 January of the year 2003.

Those whose consumption is equal to or greater than 3 million Nm3, on 1 January of the year 2008.

2 starting from January 1 of the year 2013, all consumers, regardless of their level of consumption, shall be regarded as qualified.

3. during the period of three years from the moment that a consumer had agreed to the condition of qualified, the consumer may choose to continue acquiring the gas distributor to rate or buy it from a marketer in the freely agreed conditions.

6th. Term of connection and security.

For ten years from the entry into force of this law, the rates, tolls and fees regulated therein, shall include a term of connection and security system, which will be satisfied by all consumers of natural gas and which shall ensure a reasonable return to those investments in basic and secondary transport facilities to provide adequate security to the natural gas system that they had been subject of concession before the entry into force of this regulation.

Seventh. Separation of activities.

1. societies that the entry into force of this law come carrying out activities which, in accordance with article 63 should be separated for accounting purposes, shall make such effective accounting separation within the period of one year from that entry into force.

2. societies that undertake incompatible activities within the gas sector, to the entry into force of this Act will proceed to the legal separation of activities, in accordance with article 63, in the period of two years from the entry into force of this law.

3. companies that initiate activities of commercialization of fuel gases, will do so through societies having as sole corporate purpose in the gas sector that activity.

4 to the contributions of assets activities gas carried out in compliance with the requirement of separation of activities provided for in article 63 of this law shall them apply the established regime for the contributions of branches of activity in Chapter VIII of title VIII of law 43/1995, of 27 December, tax.

Duties of notaries, commercial loggers and property corresponding to the acts necessary for adapting to the above-mentioned requirement of separation of activities shall be reduced to 10 per 100.

Octave. Authorizations and concessions in processing records.

Records of authorisations and concessions relating to activities subject to regulation in title IV and are pending the entry into force of this law will be resolved in accordance with the same.

Novena. Tariffs, tolls and fees.

In order to properly assess the implementation of the new system of tolls, rates and fees, and avoid possible distortions in the regulation of the right of access to the facilities of third parties, provisions of article 92.2 of the present law shall apply within a period of superior to two years from the effective exercise of the right of access.


Tenth. The electric system National Commission.

1. Notwithstanding the provisions first, 1 of the eleventh additional provision of this law, the National Commission on the electrical system will continue in the exercise of their functions until the end of the period of five years for which the members that make up its Board of Directors to the entry into force of this law, were appointed.

During this period of time, is can hold simultaneously the office of Member of the National Committee of the electrical system and member of the National Energy Commission, provided that they have been elected by the procedure laid down in the eleventh additional provision, first paragraph, number 4, of this Act, only receiving remuneration for one of them.

2. regulations will establish the transfer of the personal and material resources of the National Commission of the electric system to the National Commission on energy, in any case, guaranteeing maximum economy of resources.

Eleventh. Members of the National Energy Commission.

In the period of three months from the entry into force of this law, shall be to the appointment of the President and vocal members of the National Commission of energy.

Twelfth. Exclusive supply contracts.

The owners of the facilities for the supply of vehicles which, at the entry into force of the present transitional provision, had agreed on a Commission basis agreement supply fuels dealer exclusive to the wholesale, are entitled, from that entry into force, to adapt the clauses of the contract regime of sale firm respecting its economic content, for which purpose will pose corresponding bargaining does not result, in any case, for this cause, the rescission or resolution of these contracts, nor the interruption of the fulfilment of the obligation to supply exclusive or any other.

Thirteenth. Previous authorizations.

Authorisations granted prior to the entry into force of this provision by virtue of the provisions of articles 7 and 8 of the law 34/1992, of 22 December, management of the oil sector, will remain in force and shall have full effect without ratification.

Fourteenth.

Processing referred to in article 77.3 of the present law, shall authorize competent administration at every time regardless that the original authorization was different to that-management.

15th. Distribution of natural gas.

On the area of distribution of natural gas from a concession which, according to the sixth additional provision of this Act, had become authorization, not be granted new authorizations for the construction of distribution facilities during a period corresponding to the time of validity of the original concession with a maximum of fifteen years since the entry into force of the Act and must, in this period, authorized enterprises, the obligations of public service development and extension of the networks, imposed under the concession, with saturation of the capacity of their facilities. All this without prejudice to the provisions of article 78 of this law.

Sole repeal provision. Repeal legislation.

Without prejudice to the provision transient second, on the entry into force of this Act are hereby repealed: to) the law 21/1974, of 27 June, on research and exploitation of hydrocarbons.

(b) Law 10/1987, of 15 June, basic provisions for a coordinated development of actions of gaseous fuels).

c) La law 34/1992, of 22 December, management of the oil sector.

(d) articles 25 to 29, both inclusive, of the Royal Decree-Law 7/1996, of 7 June.

(e) Article 86.3 of the Act 7/1985, of 2 April, and concordant provisions, in which refer to the gas supply.

(f) articles 6, 7 and 8 of law 54/1997 of 27 November, the electricity sector.

(g) any rule by law or regulation insofar as it opposes provisions in this law.

FINAL provisions first. Character of the law.

1. the present law has basic character, in accordance with article 149.1.13. ª and 25.ª of the Constitution.

2. are excluded from this basic character references to administrative procedures, which will be regulated by the competent administration, adjusting in any case to the provisions of law 30/1992, of 26 November, legal regime of public administrations and common administrative procedure.

3. the provisions of this law relating to the regime of foreign trade of crude oil and petroleum products and compulsory purchase and easements are issued in exercise of the powers conferred on the State in article 149.1.8., 10th and 18th of the Constitution.

The precepts of title II relating to exploration, investigation and exploitation of hydrocarbons are generally applicable to the protection as provided in article 149.1.13., 18th and 25.ª of the Constitution.

The second. Schools of development.

The Government, in the scope of their powers, approved by Royal Decree this law detailed rules.

Third. Entry into force.

This law shall enter into force the day following its publication in the "Official Gazette".

Therefore, command to all Spaniards, private individuals and authorities, which have and will keep this law.

Madrid, October 7, 1998.

JUAN CARLOS R.

The Prime Minister, José María AZNAR López

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