Notice Of Public Hearing And Consultation No. 31/2014: New Resolution - Regulations Forcconstruction, Expansion And Operation Of Storage And Transportation Facilities Of Oil, Natural Gas, Oil Products And Biofuels - Oil, Gas & Electricity

Keywords: ANP, new resolution

The Notice of Public Hearing and Consultation No. 31/2014 of the National Agency for Petroleum, Natural Gas and Biofuels ("ANP") was published on December 31, 2014, in order to propose the draft of a new Resolution to regulate the construction, expansion and operation of storage and transportation facilities for oil, natural gas, oil products, biofuels and other products regulated by the ANP ("Products"), revoking Ordinance ANP No. 170/1998 ("Ordinance").

The draft of the Resolution was made available on January 05, 2015 and reflects the most recent legislative changes, particularly the enactment of Law No. 11.909/2009 (Gas Law), its Regulating Decree and Law No. 12.490/2011, which amended Law No. 9.478/1997 (Oil Law), as well as the experience acquired by ANP in the analysis of projects submitted for granting authorization to construct, expand and operate based on the current Ordinance.

The draft of the new Resolution reiterates the understanding, currently applied by ANP, that the construction, extension and operation of facilities and transference and production flow pipelines associated to areas under the exploration, development and production agreement must be bound to the relevant Development Plan, in accordance with Ordinance ANP No. 90/2000. The draft of the Resolution proposed by the Notice of Public Hearing and Consultation No. 31/2014 (Resolution not yet published), already refers to the specific documentation to be presented during the Development Phase for approval of the construction and operation of such facilities and pipelines.

Therefore, according to the provisions of the Gas Law and its Regulating Decree, the new Resolution will apply only in relation to natural gas transport pipelines subject to the authorization regime, excluding those subject to the concession regime.

The requirement to obtain authorizations for storage and handling of Products not expressly described in the draft of the new Resolution will be assessed on a case by case basis by ANP.

The proposal also introduces a new regime of prior registration of the company or consortium interested in obtaining authorization from ANP, regardless of not having all the listed documentation required, but the company must ensure registration is kept up to date. The draft of the new Resolution also introduces new rules on decommissioning of facilities and the authorization procedure for the transfer of ownership, subject to prior assessment of ANP and compliance with the new Resolution's requirements.

The Public Consultation started on January 5, 2015, and will last for 30 (thirty) days with the Public Hearing being held on March 11, 2015, from 14hrs to 17hrs, in ANP's auditorium.

In order to access the full text of the Notice of Public Hearing and Consultation No. 31/2014 and minutes of the new Resolution related to the review of the Ordinance, click here and here.

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.