DON JUAN CARLOS I

KING OF SPAIN

To all who present it and understand,

Sabed: That the General Courts have approved and I come to sanction the following Law:

PRELIMINARY TITLE

Article first.

One. The National Hydrocarbons Institute shall be established, which shall have the consideration of an Entity governed by public law as provided for in Article 6 (1) (b) of the General Budget Law, and shall be governed by this Law and other provisions. applicable.

Two. The National Hydrocarbons Institute will not be applicable to the provisions of the Law on Autonomous State Entities.

Article 2.

The National Hydrocarbons Institute will coordinate and control, in accordance with government guidelines, the public sector's business activities in the area of hydrocarbons. The Institute shall also be responsible for any business initiative that the public sector promotes in this field.

It will also promote research and technological development, both of the research and exploitation systems of fields and of chemical processes and of energy transformation, in the field of their competences. sectorial.

Third item.

The National Hydrocarbons Institute is attached to the Ministry of Industry and Energy.

TITLE FIRST

Of the governing bodies of the Institute

Article 4.

The governing bodies of the National Hydrocarbons Institute are: the Board of Directors, the President, the Vice President and the Executive Committee.

Article 5.

One. The President of the National Hydrocarbons Institute holds the legal representation of the Institute and exercises the powers delegated to it by the Board of Directors.

Two. The Vice President assists the President and replaces him in cases of vacancy, absence or illness.

Three. The President and the Vice-President shall be appointed by Royal Decree, on the proposal of the Minister of Industry and Energy, among those who have recognized competence and experience in the field of the economy or the Company.

Four. The term of office of the President shall be four years, at the end of which it may be renewed. The early termination may only be agreed upon by the Government by the waiver of the holder or by virtue of duly justified cause in the manner that it is regulated.

Five. The performance of the positions of President and Vice-President shall be incompatible with the exercise of any professional, commercial or public activity outside the scope of the Institute and its participating companies.

Article 6.

One. The Board of Directors is responsible for directing the action of the National Hydrocarbons Institute in the framework of the hydrocarbon policy indicated by the Government, to raise the proposals for acts that require the approval of the administration. the State and control the management of the Institute's enterprises.

Two. The Management Board shall be composed of:

a) The President and the Vice President.

b) Eight Councillors representing the Administration.

c) Four designated members among persons who have recognized competence and experience in the field of economy or enterprise.

Three. The Directors will be appointed by the Government, on a proposal from the Minister of Industry and Energy.

Item seventh.

The Executive Committee shall have the delegated composition and powers to be established by the Council.

TITLE II

Of the assets and means of the National Hydrocarbons Institute

Article 8.

It is generally attributed to the National Hydrocarbons Institute that the property and units belonging to the State and other state agencies in the area of hydrocarbons, as well as the management of such units, in terms resulting from the following items.

Article ninth.

The founding heritage of the National Hydrocarbons Institute will be integrated by:

a) An initial allocation of 300 million pesetas.

b) The actions and rights pertaining to the State in the "Company Iberian Refiner of Petroleum, Company Anonymous" (PETROLIBER), and "Hispanica de Petróleos" (HISPANOIL).

(c) The shares and rights belonging to the State and the Banco de España in the "Company of the Monopoly of Petroleum, S. A." (CAMPSA).

d) The actions and rights currently belonging to the National Institute of Industry in the "National Petroleum Enterprise, S. A." (ENPETROL); 'Hispanica de Petroleos, S. A.' (HISPANOIL); "National Company for Research and Exploitation of Petroleum, S. A." (ENIEPSA); "National Gas Company, S. A." (ENAGAS), and, "Butano, S. A.".

e) The properties and rights of the State affected by the Monopoly of Petroleum that do not form part, proceed, nor will be destined for the distribution system.

Article ten.

The Petroleum Monopoly is maintained in how many import, distribution and sales activities it currently carries out.

The investments of the Petroleum Monopoly by way of acquisition or amortization can only be realized for the purpose of maintenance and development of the network and the activities of distribution. The amount shall be shown annually in the expenditure items of the General Budget of the State.

The amount of the Petroleum Income will be entered directly into the Treasury without the possibility of any more detactions than those provided for in the current legislation.

Item eleven.

One. The Company of the Petroleum Monopoly shall have the character of the company's administrator, without, by virtue of its relationship with the State and in such a concept, it must perform or be able to fulfil other purposes than those referred to in Article 10 of the This Act.

Two. The Company's regime shall be that established by the legislation in force as amended by this Law.

Three. The Directors representing the capital of the National Hydrocarbons Institute in CAMPSA will be appointed by the Government on a joint proposal of the Ministers of Finance and Industry and Energy, in accordance with the National Hydrocarbon Institute.

Four. The Government Delegate in CAMPSA will be appointed by the Council of Ministers on a joint proposal from the Ministers of Finance and Industry and Energy.

TITLE III

From the functions and faculties and personal means of the National Hydrocarbons Institute

Article twelve.

In order to fulfill its objectives, the National Hydrocarbons Institute will be able to carry out all kinds of management and disposition, commercial and industrial activities, as well as all kinds of financial operations with the shares, take money on loan and issue nominative and bearer obligations, subject to authorization by the Government, without any limitations other than those laid down in this Law and other provisions of application.

Article thirteen.

The personnel that the National Hydrocarbons Institute uses for the performance of its functions will be governed by the rules of labor law, preferably coming from the organic staff of the companies or organizations that are fully or partially integrated into the Institute. Where such staff meets the status of a public servant, they may be placed in a supernumerary situation in their home body.

Article fourteen.

The contracts of the National Hydrocarbons Institute will be governed by the rules of private law.

Article fifteen.

The budgetary and control regime shall be the one that results from the consideration of the State Society that the National Hydrocarbons Institute attributes to the first article of this Law.

Article sixteen.

The net benefits that, if any, the National Hydrocarbons Institute will obtain will be used for the formation of reserve funds, social security contributions and partial financing of the Program of Activities, Investments and Financing, directly entering the Treasury a minimum of 50 per 100 of those.

ADDITIONAL PROVISIONS

First.

Corresponds to Government:

One. To set the policy on hydrocarbons.

Two. Approve the Annual Fuel Program.

Three. Authorise the activities of exploration and research, production, transport, storage, purification and refining of hydrocarbons, except those whose competence has been transferred to the corresponding Autonomous Communities.

Four. To fix the sales prices of the various products and the transfer prices of the importer or manufacturer to the distributor, as well as the prices of the national production hydrocarbons.

Five. Approve the Program of Activities, Investments and Financing of the National Hydrocarbons Institute and through it of its Companies, as well as to designate the governing bodies of the National Hydrocarbons Institute in the regulated terms in This Law. It will also require the government's approval to set up new companies and the increase or transfer of equity shares.

Six. The remaining privileges granted to you by the current legislation.

Correspond to the Ministry of Industry and Energy the powers of approval and, where appropriate, proposal, related to the functions described in this provision, except as provided in the additional provision next.

Second.

It is up to the Ministry of Finance to have the powers of approval and, where appropriate, proposed, related to the Petroleum Monopoly.

However, the Ministers of Finance and Industry and Energy, together, are attributed the functions of approval and, where appropriate, proposed in the following areas:

a) Fixing sales prices to the public of monopolized products.

(b) Fixing the purchase prices of the products to the refineries and the annual liquidation of the products.

c) Monopoly Investments.

d) Annual product delivery program to the Monopoly area.

Third.

All the heritage transmissions and operations necessary for the establishment and operation of the National Hydrocarbons Institute shall be exempt from any tax.

Fourth.

An extraordinary appropriation of three hundred million pesetas is granted to Section 20 of the State's General Budget, "to cover the initial allocation of the National Hydrocarbons Institute," which will be financed By means of a reduction in the amount of the credit included in Section 20, Ministry of Industry and Energy, Service Zero one, Ministry, Sub-Secretariat and General Services, concept seven hundred and twenty-three.

Fifth.

The government is authorized to liberalize the marketing of non-energy petroleum products.

Sixth.

The Government, on the proposal of the Minister of Finance, will determine within six months the relationship of goods and rights that are transferred to the National Hydrocarbons Institute in compliance with the provisions of Article 9, paragraph (e) of this Law.

FINAL PROVISIONS

First.

The Government will enact, within a maximum of one year, a proposal from the Minister of Industry and Energy, and after obtaining the opinion of the State Council, the Regulation of the National Hydrocarbons Institute.

Second.

The government will promulgate within six months, on a joint proposal from the Ministers of Finance and Industry and Energy, and after the State Council's opinion, the relationship of existing and repealed rules as a result of the the entry into force of this Law.

Third.

The Government will regulate the new nature, structure and functions of the Government Delegation in CAMPSA, in order to accommodate it in accordance with the provisions of this Law. In the meantime, the delegation will continue to exercise the functions assigned to it by the legislation, in so far as they are not amended by this Law.

Fourth.

The Ministry of Finance is authorized to carry out the necessary credit transfers in order to apply to the National Hydrocarbons Institute the proportional share of the planned budgetary appropriations. for the financial year 1981, in favour of the National Institute of Industry and the General Directorate of the State's Heritage, in view of the shares transferred to the National Hydrocarbons Institute.

Fifth.

The entry into force of this Law will be repealed the Royal Decree-Law eight/thousand nine hundred and eighty-one, of twenty-nine of April, of creation of the National Institute of Hydrocarbons.

Sixth.

This Law shall enter into force on the day following its publication in the "Official State Gazette".

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Baqueira Beret at twenty-eight in December of a thousand nine hundred and eighty-one.

JOHN CARLOS R.

The President of the Government,

LEOPOLD CALVO-SOTELO AND BUSTELO