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Minerals Report - International Seabed Authority

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the one whose burning is authorised by ANP are proportionally divided<br />

amongst the wells, in accordance to the output of natural gas of each well.<br />

A specific contract between the landowner and the concessionaire<br />

must be signed, with a copy for ANP, so that payment may begin. Such<br />

payment must come through until the last day of the second month following<br />

the one of the production. ANP must receive, until 30 days following the<br />

payment, a document proving that the payment was actually made.<br />

All payments to be made by the concessionaires shall be calculated<br />

based on reference prices, as set by the Presidential Decree number 2,705/98.<br />

For the oil, it will be the highest value between the sale price actually<br />

practised by the concessionaire and a price set by ANP, for each current flow,<br />

based on Brent oil price, more or less a differential that is established<br />

according to the oil refining profile. Whilst the concessionaire must notify<br />

ANP, until the 15 th day of the following month, the volume of oil sold and the<br />

respective sales price, ANP will publish monthly in the Union Official Journal<br />

the prices set for each field. The highest between the two figures will be the<br />

reference to calculate the payments to be done by the concessionaire.<br />

For natural gas, reference price is equivalent to the average sale price<br />

practised by the concessionaire, free of taxes, deducting transportation costs.<br />

However, transportation costs may only be deducted if the gas sale contract<br />

contains such a specific clause.<br />

Regularly published ANP regulations set the reference prices both for<br />

the petroleum and for natural gas.<br />

As stated before, there are several rules in the regulations and in the<br />

concession contract concerning environmental matters. But, in Brazil, the<br />

Conama – Conselho Nacional do Meio Ambiente (National Council on<br />

Environment) has its specific resolutions dealing with environment<br />

protection. One resolution deserves special attention for those who work in<br />

the petroleum and natural gas industry: Conama Ordinance number 23, of<br />

December 7, 1994.<br />

INTERNATIONAL SEABED AUTHORITY 830

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