Hydrocarbon Nationalization, Levy, and Strategic Reserve Act, 1695

Hydrocarbon Nationalization, Levy, and Strategic Reserve Act, 1695

Cortes Federales
Long title	An Act to nationalize hydrocarbon reserves, establish the Strategic Energy Reserves, and establish a levy on hydrocarbons; among other purposes.
Number	010
Introduced by	Deputy Manuel Rivas, Deputy from Alduria (FHP)
Extent	Federation of Nouvelle Alexandrie
Dates
Royal Assent	14.XIV.1697 AN
Commencement	14.XIV.1697 AN
Text of statute as originally enacted

Legislative history

Status	Date	Tabled By	Vote Outcome
Introduced in the Federal Assembly	1695 AN	Deputy Manuel Rivas (FHP)
Debated in the Federal Assembly	1697 AN
Passed in the Federal Assembly	1697 AN
Debated in the Chamber of Peers	1697 AN
Passed in the Chamber of Peers	1697 AN
Royal Assent	1697 AN

Text

HYDROCARBON NATIONALIZATION, LEVY, AND STRATEGIC RESERVE ACT, 1695

Ordered, by the Cortes Federales of Nouvelle Alexandrie,
to be Printed, 1694 AN.

_______________________________

BE IT ENACTED by the King’s Most Excellent Majesty, by and with the advice and consent of the Cortes Federales, in this present 1st session assembled, and by the authority of the same, as follows:-

PART I
GENERAL PROVISIONS.

1. CITATION.

1. This Act may be cited in all purposes as the “Hydrocarbon Nationalization, Levy, and Strategic Reserve Act, 1695.”

2. DEFINITIONS.

1. The terms used in this Act shall be defined as follows:
   1. The term “hydrocarbon” or “hydrocarbon products” shall be construed to refer to oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all products refined or separated therefrom;
   2. The term “barrel of oil” shall be defined as 42 gallons, or 159 litres, of crude oil.

PART II
NATIONALISATION OF HYDROCARBON RESOURCES.

3. HYDROCARBON DEPOSITS NATIONALIZED.

1. Hydrocarbon deposits, regardless of the state in which they are found or the form in which they are presented, are the direct, inalienable, and imprescriptible domain of the Federation of Nouvelle Alexandrie. No concession or contract may confer ownership of hydrocarbon deposits.
2. The right to explore and exploit hydrocarbon fields, and market their products is exercised by the Federation through the Federal Oil Company (hereinafter referred to as the “FOC”). #This public company, for the exploration, exploitation and commercialization of hydrocarbons, shall be allowed into joint ventures with individuals or groups, national or foreign, according to the provisions of this Act and the laws.
3. The transportation of hydrocarbons and the distribution of natural gas through networks will be subject to administrative concessions, for a limited time, in favor of individuals or groups, national or foreign, made by and through the Department of Interior.
4. The refining and industrialization of hydrocarbons will be carried out in accordance with the provisions of the laws.
5. Within 50 kilometers of the national borders, foreigners may not acquire or own real estate properties by any title, except in the case of national necessity declared by law.
6. The FOC, on behalf of the Federation, may enter into joint ventures with individual or collective foreign, public or private entities, for the exploration, exploitation and commercialization of hydrocarbons, maintaining in all cases the ownership of the proprietary right over the real estate that, for purposes of the oil industry, are built within that area and will exercise possession of them even through third parties.
7. The Federation nor the FOC shall not assume any obligation of financing or liability to third parties with respect to risk sharing agreements.
8. The oil activities subject to this Act will be executed using modern techniques and procedures for the exploitation of the fields, under the supervision of the FOC, in order to establish production levels in accordance with efficient and rational practices for the recovery of hydrocarbon reserves and the conservation of reservoirs and deposits, not being able to proceed to the burning or venting of gas, without the prior express approval of the Secretary of Interior and the supervision by the FOC.

PART III
STRATEGIC ENERGY RESERVE.

4. ESTABLISHMENT OF STRATEGIC ENERGY RESERVE.

1. The Secretary of Interior is authorized to create a Strategic Energy Reserve (hereinafter called “the Reserve”) for:
   1. the storage of up to one (1) billion barrels of petroleum and petroleum products;
   2. the storage of other government-designated energy sources, products, and material as determined by the Secretary of Interior or the Council of State;
   3. the adequate physical facilities and infrastructure for the maintenance and secure transport of the same.
2. The Secretary of Interior shall, subject to the review and oversight of the President of the Government and the Council of State, exercise authority over the development, operation, and maintenance of the Reserve.
3. The physical security of the facilities for the Reserve shall be the responsibility of the Secretary of Defense, in coordination with the Secretary of the Interior.
4. Drawdown and sale of products from the Reserve may not be made unless the President of the Government and the Council of State, have, by written instrument, determined that drawdown and sale are required by a severe energy supply interruption.
5. Whosoever shall violate this provision shall, after conviction by the court, suffer a fine equivalent to double the market price of the drawn-down petroleum or petroleum products, as applicable, payable to the Strategic Energy Reserve Fund, and imprisonment for one to twenty years, at the discretion of the court.
6. Drawdown of petroleum and petroleum products from the Strategic Energy Reserve for the use of the Federal Forces of Nouvelle Alexandrie may be made on authority of the President of the Government, on recommendation of the Secretary of Defense, if a severe energy supply interruption shall be deemed to exist if the President of the Government determines that—
   1. an emergency exists and there is a significant reduction in supply which is of significant scope and duration;
   2. a severe increase in the price of petroleum and petroleum products has resulted from such emergency;
   3. such price increase is likely to cause a major adverse impact on the national economy.
7. The Secretary of Interior shall sell products withdrawn from the Strategic Energy Reserve at public sale to the highest qualified bidder, in the amounts necessary or authorized by the President of the Government for the period, and after a notice of sale considered appropriate by the Secretary, and without regard to local regulations controlling sales of petroleum products.
8. The Secretary of Interior may, prior to actual sale and delivery, cancel in whole or in part any offer to sell as part of any drawdown and sale under this section.

5. RESERVE REPLENISHMENT.

1. Monies accruing to the Strategic Energy Reserve Fund from the drawdown and sale of products from the Reserve shall be used to purchase replenishment stores at a market price beneficial to the Government of Nouvelle Alexandrie as the President of the Government, the Secretary of Defense, or the Secretary of Interior may direct.
   

6. STRATEGIC ENERGY RESERVE FUND.

1. There is hereby created a Fund within the Federal Bank of Nouvelle Alexandrie to be known as the Strategic Energy Reserve Fund, from which all monies from sales of products from the Reserve shall accrue, as well as all fines or forfeitures in accordance with this Act.
   

7. EXEMPTIONS FROM TAXES.

1. The Government of Nouvelle Alexandrie along with state and local governments, shall take measures necessary to encourage the production of sporting goods or equipment determined by Royal Decree or an Act of the Cortes Federales (hereinafter referred to as "sporting goods, etc.") in order to promote national sports.
2. If deemed particularly necessary for the promotion of national sports, the Department of Treasury may lend money from a specially established sports encouragement fund to exemplary manufacturers designated from among those producing sporting goods in Nouvelle Alexandrie, subject to the regulations and stipulations of the laws.
3. Regional and local governments may provide for matters concerning measures necessary to encourage the production of sporting goods, etc.
   

8. NOTICE TO THE CORTES FEDERALES, DELEGATED AUTHORITIES.

1. Drawdown and sale of petroleum and petroleum products in accordance with this Act shall be reported to the Cortes Federales no later than the next session day after the drawdown order is signed by the President of the Government.
2. Authority is granted to the President of the Government and to the Secretary of Interior to issue Departmental Orders in order to ensure the proper implementation of this Act.
3. The Secretary of Interior is authorized to delegate tasks or authority vested in his office in accordance with this Act, via Departmental Orders, to a subordinate office or officer within the Department of Interior.

PART IV
HYDROCARBON LEVY.

9. HYDROCARBON LEVIES.

1. A tax of twelve (€12) écu per unit, as determined by the Department of Interior and the Micras Organisation for Standardisation, is hereby levied on all hydrocarbon products sourced and produced within the Federation of Nouvelle Alexandrie, as well as on all hydrocarbon products imported into the Federation, with:
   1. Four (€4) écu accruing to the Strategic Energy Fund;
   2. Four (€4) écu accruing to the general fund of the Department of Interior;
   3. Four (€4) écu accruing to the federal government provided that two (€2) écu shall accrue to the payment of government debts accrued.
2. Whosoever shall violate this provision shall, after conviction by the court, suffer a fine equivalent to double the market price of the untaxed or mis-taxed petroleum or petroleum products, as applicable, payable to the Strategic Energy Reserve Fund, and imprisonment for one to twenty years, at the discretion of the court.

PART V
CLOSING PROVISIONS.

10. COMMENCEMENT AND APPLICATION.

1. This Bill shall apply to all of the Federation of Nouvelle Alexandrie.
2. This Bill shall not become law unless it has been given Royal Assent.
3. This Bill shall be published and made publicly available.
4. In the event any provision or part of this Bill is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Bill, will be inoperative.