Second National Reconcilation Study EITI Peru - unofficial…

Consultancy for the Second National Reconciliation Study of the Extractive
Industries Transparency Initiative (EITI) in Peru (2008 – 2010) (Continuation)
VII.4. Gas Canon
In order to show gas canon distribution, we have separated the distribution of the gas royalty canon from
Income Tax canon.
VII.4.1 Gas Canon – Gas Royalty
Perupetro calculates gas company royalties on a bi-monthly basis. Furthermore, Perupetro calculates the
applicable canon, the sole beneficiary of which is, presently, the Department of Cusco. The canon amount
calculated by Perupetro is submitted monthly by an official communication to the Decentralisation
Secretariat of PCM, which distributes such amount to the local governments (district and provincial
municipalities) and to the Cusco regional government using the distribution ratios determined by DGDFAS
-MEF (former DGAES-MEF).
Official distribution of the gas canon is made by PCM in aggregate form to the various local and/or regional
(Cusco) departments, as applicable. However, the information provided by Perupetro allows identifying the
amounts distributed by company on a departmental level only, with no specification as to the government
to which the canon is to be distributed
Therefore, we performed recalculations to verify the figures provided by Perupetro in its various reports,
and compare these figures to the information provided by PCM.
It should be noted, for purposes of this Second Study, that companies included in the in the gas canon
review are part of Consorcio Camisea, for which reason Cusco is the sole beneficiary department. This is
the case because, as provided in the Canon Law, companies that have started operations in departments
with no specific legislation in this respect, are required to apply the gas canon distribution methodology. In
other words, companies producing gas in areas where hydrocarbon laws were in place prior to Canon
Law, will continue with the same methodology as the oil canon and sobrecanon (royalty surtax).
To make reviewed information comparable for purposes of distribution by the companies signed up to the
Second Study, we have compared the information contained in the bi-monthly and monthly reports
provided by Perupetro (with proven calculations by Ernst & Young for the canon calculated) for each
company and each department. Furthermore we have compared the entire information reported monthly
by Perupetro to PCM, to the information PCM reports to DGTP - MEF in order to proceed with respective
transfers. It should be noted that the information handled by Perupetro is denominated in US dollars and
converted to Peruvian New Soles at the exchange rate applicable at the time of being reported to PCM.
Amounts in domestic currency do not allow determining the distribution by company because such
amounts are departmental aggregate amounts.
Consultancy for the EITI Peru Multi-Sector Permanent Working Committee
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