The energy crisis has given a singular economic importance to the Hydrocarbons Sector and to the management, in it, of the State's interests, whose administrative dispersion has so far not favored coherence and the necessary efficiency of the public undertaking in the implementation of the Government's energy policy.

This situation is included in the National Energy Plan, which proposes better coordination of the public sector of the sector.

This advises to group state holdings in the Hydrocarbons Sector into a public law entity, the National Hydrocarbons Institute, which is created by this provision.

The regularization is complete with the attribution to the Ministry of Industry and Energy, of which the new entity will depend, of the competences directly related to the energy policy, preserving the Ministry of Finance Those referring to the tax management of the Petroleum Monopoly.

These measures do not affect public functions in relation to the sector that correspond to the government, and that will continue to apply with equal transparency and fairness to state and private enterprises.

It seems, finally, that the new organization can immediately enter into force to avoid situations in interinity.

In its virtue, after deliberation of the Council of Ministers at its meeting of the twenty-fourth day of April of a thousand nine hundred and eighty-one and in use of the authorization contained in the article eighty-six of the Constitution,

DISPONGO:

Article first.

The National Hydrocarbons Institute will be created that will have the consideration of the Public Law Entity of those provided for in article six-one-b of the General Budget Law, and will be governed by the present Royal Decree-Law and other applicable provisions.

Article 2.

The National Hydrocarbons Institute will coordinate, 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.

Third item.

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

Article 4.

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

a) An initial allocation of three hundred million pesetas.

b) The shares and rights belonging to the State in the "Refinery Iberian Refinery of Petrolos, S. A." (PETROLIBER) and "Hispanica de Petroleos" (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 Instituto Nacional de Industria en la "Empresa Nacional del Petróleos, S. A." (ENPETROL), 'Hispanica de Petroleos, S. A.' (HISPANOIL), "National Company for Research and Exploitation of Petroleum, S. A." (ENIEPSA), "Empresa Nacional de Gas, S. A." (ENAGAS) and "Butano, S. A.".

e) The properties and rights of the State affected by the Monopoly of Petroleum that are not a party, will not be destined for the distribution system.

Article 5.

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

Article 6.

The governing bodies of the National Hydrocarbons Institute are:

(a) The Board of Directors, which will be responsible for directing the action of the National Hydrocarbons Institute in the framework of the hydrocarbon policy indicated by the Government, will raise the proposals for acts that require approval of the State Administration and control the management of the companies of the Institute.

(b) The President, who shall hold the legal representation of the Institute and exercise the powers conferred upon him by the Board of Directors.

c) The Vice President, who will assist the President and replace him in the case of vacancy, absence or illness.

(d) The Executive Committee, with the composition and delegated powers to be established by the Council.

Item seventh.

One. 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 economics or enterprise.

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

Article 8.

The President and the Vice President will 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.

The term of office of the President will be four years, at the end of which it can 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.

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 ninth.

In order to fulfill its objectives, the National Hydrocarbons Institute will be able to carry out all kinds of management and disposition acts, as well as all commercial and industrial activities related to them, without further limitations than those set forth in this Royal Decree-law and other laws that apply to it.

The personnel that the National Hydrocarbons Institute uses for the performance of its functions will be governed by the rules of labor law. Where such staff meets the status of a public servant, they may be placed in a supernumerary situation in their home body.

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

The budgetary and control regime will be the one that results from the consideration of state society that the National Hydrocarbons Institute attributes to the first article of the present Royal Decree-Law.

The total amount of the benefits that, if any, the National Hydrocarbons Institute will get into the Treasury.

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.

Corresponds to Government:

One. To set the policy on hydrocarbons.

Two. Approve the Annual Fuel Program.

Three. Authorize the activities of exploration and research, production, transport, storage, purification and refining of hydrocarbons.

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 PAIF of the National Institute of Hydrocarbons and its companies, as well as designate the governing bodies of the National Hydrocarbons Institute in the terms regulated in this Royal Decree-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 with the powers of approval and, where appropriate, proposal, related to the functions described in this Article, except as provided in the following article.

Article twelve.

Correspond to the Ministry of Finance with the powers of approval and, where appropriate, proposals related to the Oil Monopoly.

However, the Finance and Industry and Energy Ministers are attributed jointly to the discharge functions and, where appropriate, proposals related to the Oil Monopoly.

However, the Finance and Industry and Energy Ministers are attributed jointly to the discharge functions and, where appropriate, to the following matters:

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.

Article thirteen.

The Company of the Petroleum Monopoly will have the character of the manager of the company without, by virtue of its relationship with the State and in such a concept, it must perform or be able to fulfill other purposes than those mentioned in the Article ten of this Royal Decree-law.

The regime of the company will be established by the legislation in force in the unmodified by the present Royal Decree-Law.

Advisors representatives of 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 Council of Administration of the National Hydrocarbons Institute.

Article fourteen.

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.

ADDITIONAL PROVISIONS

First.

The National Hydrocarbons Institute will be the guarantor of the National Institute of Industry in respect of all the obligations that the borrower or guarantor has in respect of the latter at the moment of entry into force of this Royal Decree-law.

Second.

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

Third.

An extraordinary appropriation of three hundred million pesetas is granted to Section 20 of the General Budget of the State "to cover the initial allocation of the National Institute of Hydrocarbons", 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, Undersecretary and General Services. Concept seven hundred and twenty-three.

Fourth.

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

Fifth.

The Government at the proposal of the Ministry of Finance will determine the relationship of goods and rights that are transferred to the National Hydrocarbons Institute in compliance with the provisions of the fourth paragraph of this Article. Royal Decree-law.

FINAL PROVISIONS

First.

The Government will promulgate the proposal of 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 a joint proposal of the Ministers of Finance and Industry and Energy and after the State Council has delivered an opinion, the relationship of existing and repealed rules as a consequence of the entry into force of the present Royal Decree-law.

Third.

The Government will regulate the new nature, structure and functions of the Government Delegation in CAMPSA, in order to accommodate it to the provisions of this Royal Decree-Law. In the meantime, the delegation will continue to exercise the functions that the legislation currently assigns to it in what is not modified by the present Royal Decree-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 of a thousand nine hundred and eighty-one, in favor of the National Institute of Industry and the General Directorate of the State Heritage in reason of the participations that are transferred to the National Institute of Hydrocarbons.

Fifth.

This Royal Decree-law will enter into force the day after its publication in the "Official State Gazette".

Given in Madrid to twenty-four of April thousand nine hundred and eighty-one.

JOHN CARLOS R.

The President of the Government,

LEOPOLD CALVO-SOTELO AND BUSTELO