Brazilian Regulations for Petroleum Industry

Brazilian Regulation related to the Petroleum Industry
INDEX 1 Introduction ..02 The Norms and Brazilian Institutions.02 2 Presentation .06 3 ANP and Petroleum Law _ Law # 9.478/9707 4 Environmental ..11 The Environmental Licensing for Oil Industrys Activities ..11 Mandatory Environmental Licenses ... 13 Law # 9.985 /2000 SNUC... 16 Law # 9.605/1998 Environmental Crimes Law.... 16 Law # 5.197/1967 Fauna Law.... 17 5 - Health, Safety and Environment.. 17 Law # 9.966/2000 - Oil Pollution Control... 18 Decree # 2.508/1998 Marpol 73/78... 19 Decree # 2.870/199819 5.1-Environmental Risk Management and Individual Emergency Plan . 20 Conama Resolution # 293/2001 - Individual Emergency Plan..20 ANPs Administrative Rule # 3/2003 .20 Decree # 4.871/2003 - Plans for the combat of pollution caused by oil...21 5.2 - Work Safety.21 NR 30...21 6 - Technical Responsibility.23 7 Bibliography. 23
BRAZILIAN LEGISLATION PETROLEUM INDUSTRY 1 Introduction The Norms and Brazilian Institutions Regarding the petroleum and gas sectors, the activities are regulated by laws and normative administrative procedures, e.g. the Ordinances emitted by ANP and the Resolutions emitted by CONAMA. However, all normative administrative acts must be in accordance with the law. Legally, the Brazilian norms are classified according with the relevance of the themes, so that the Federal government (Union) must legislate the themes of national relevance and the States must regulate the points that the Federal government considers of least importance. According to the constitutional norm, the Brazilian legal system is composed by the following norms, numbered by their importance: 1 Federal Constitution 2 Constitutional Amendments 3 Complementary Laws 4 Ordinary Laws Conventions/Treatments (Legislative Decrees). 5 Temporary Measure 6 Regular Decrees 7 Other norms of inferior hierarchy As in other countries, the Federal Constitution is the mother law, so that the other Constitutions must respect the legal principles established by it, under punishment when unconstitutionally declared. The Constitutional Amendments are the laws that partially change the Constitution. Normally, these amendments are incorporated to the text of the Constitution. Complementary Laws are those whose elaboration are already indicated or suggested in the Constitution text to complement or regulate of certain issues. Ordinary Laws are common laws. They are elaborated to regulate all and any subject of Brazilians interest. The Treaties and International Conventions have the same status as the ordinary federal laws. Treaty is the general term, which encloses expressions, such as Agreement, Convention, Declaration, Pact, etc. There are many Treaties that have in their contents Common Law rules, to be applied in all of the signatory countries. Those rules can be related to Civil Law, Commercial, Administrative or any other subdivision of Law. These Common Law rules, presented by the Treaties, become part of the National Law as legislative decrees and start to play the same role as ordinary laws.
The temporary measures are norms of law power. The temporary measures are an exception in the legislative process. When there is no law regarding an urgent issue to be regulated, the Republic President is able to elaborate a law and immediately submit it to the Federal Congress to be approved. Regular Decrees are issued by the Legislative Power and regards subjects of its competence. Figure 1.1 illustrates the Brazilian regulation hierarchy.
ANP Oil and Gas Activity IBAMA Environmental Federal Constitution
Laws
# 9478/95 # 5.811/72 # 6938/05
Decree
Decree #2.455/98 Decree # 2705/98 Decree # 2953/99 Decree # 3.179/99 Decree # 2508/98
Administrative rules
ANP Ordinances = ANP Administrative Rules MTE`S Administrative Rule CONAMA Resolutions MMA`S Administrative Rule / IBMA`s Administrative Rule
Oil Industry Best Practise INMETRO / NBR ABNT

Figure X - Brazilian regulation hierarchy For better understanding, lets discuss the example of the end of petroleum monopole by Petrobras and the market opening. The Federal Constitution CRFB/88, in its art. 177, item I, foresaw as a Federal Government monopoly the research and exploration of oil and natural gas pits as well as other fluid hydrocarbons, as well as, in its item IV the offshore transport of crude oil of Brazilian origin or basic oil by-products produced in the Country, like the transport, through pipeline, of its by-products and natural gas of any origin. In 1995, Constitutional Amendment # 9 altered the wording of paragraph 1 of art. 177 of CRFB/88, allowing the Federal Government to contract state or private companies to perform the activities foreseen in items I to IV of this same article. Later on, the Law #. 9478 dated 08/06/97, which governs the national energy policy and the activities related to the oil monopoly, amongst others.
Table 1.1 Examples for regulation hierarchy Nomenclature and Hierarchy of the Laws Federal Constitution Constitutional Amendment Complementary Law Ordinary Law Regular Decree Examples: Art. # 177 EC # 9/1995 inserted 1 and 2 Law # 9.478/97 Law 5.811/72 Law # 7.990/89 Decree # 2.455/98 - ANP
The other norms related to petroleum and gas enterprises are part of the administrative sphere. Normative instructions, ordinances and resolutions are the administrative acts. In this case, the entities linked to their respective ministries are: ANP (Petroleum National Agency), which is linked to MME, and IBAMA, linked to MMA. Both entities are autarchies part of the Federal Public Administration. Besides the different point areas of acting, another difference is the purpose of the entities. ANP intends to regulate, contract and supervise the economical activities regarding the petroleum industry, in accordance with Law n 9.478/97, in the guidelines emanated of the Energetic Policy National Counsel (CNPE) and in accordance with the country interests. IBAMA intends to monitor and supervise any alterations in the environment quality of regional and national ambit. CONAMA regulates and elaborates the environmental guidelines to be followed and IBAMA supervises the activities and the implementation of the guidelines established by CONAMA. The Technical Norm Brazilian Association (ABNT) is the department responsible for the elaboration of technical norms regulated for the country and providing the necessary basis to the technological development of the country. In practice, the normalization established by NBRs/ABNT is applied in the fabrication of products, in technology transfer exchange, in the improvement of the life quality through norms related to health, safety and environmental preservation. As an example, the attendance of NBR # 10.004/1987 that classifies solid waste regarding its risks to the environment and human health, in accordance to Conama Resolution #05/1993 and 362/2005. The main objective of these NBRs is to produce norms in order to guarantee the quality of the products, i.e., provide to society efficient ways to check the quality of the products. Besides that, it avoids the existence of conflicting regulations about products and services in different countries, facilitating the commercial interchange. The same can be told about INMETRO National Institute of Metrology, Standardization and Industrial Quality, Institute entailed to Ministry of Development, Industry and Foreign Trade, responsible for normalization, inspection, certification and fiscalization of metrologic, materials and functional characteristics of the manufactured goods, the national ones and the foreign ones as well. In the administrative sphere, the activities of exploration and production of petroleum and gas are under supervision and must respect the procedures coming from the Ministry of Mines and Energy- MME and the environmental norms and rules, because the activity is a potential
pollutant. In this last case, the highest department of regulation is the Environmental Ministry MMA. Both Ministries present specific Secretariats, collegiate departments and linked entities (see appendix Flip Chart). One example is the National Counsel of Energetic Policy CNPE, which is an collegiate department linked to the Ministry of Mines and Energy and to National Environmental Counsel CONAMA. These collegiate departments are responsible for the elaboration of guidelines, norms, criteria and standards related to the control and maintenance of the energy and environment divisions, respectively. Regarding navigation procedures, the Navy is responsible for standardization and fiscalization of waters in national jurisdiction. Brazilian Navy is one of the national Armed Forces, subordinated to the Ministry of Armed Forces. The norms issued by the naval authorities are nominated NORMANs. These norms are issued by the Brazilian Navy and have power of law, i.e., are laws issued by the Navy, not submitting itself to any other norm or legislation. As examples, the NORMAN 16 establishes conditions and requirements for concession and delegation of assistance and boat rescue activities, as well as goods in danger on the sea, ports and navigable ways, and the NORMAN 20, that establishes the procedures of water and ship ballast management. Other norms that may be observed by the company are the administrative rules issued by the Port Captain. Each estate has it Captain and each Captain has it own jurisdiction and procedures. Usually, these regulations treat of ports, drafts and procedures that are adopted for utilization and anchorage on Brazilian ports. According to Brazilian legislation, the company also responds for their employees and workers involved in the activity. The activities shall be performed in accordance with the Law # 5.811/1972, which disposes about employees work regime in the activities of exploration, drilling, production and oil refinement. The entity responsible for fiscalization and standardization of work is the Ministry of Work. This Entity issues Regulatory Norms NR, related to safety and work medicine. Those NRs are mandatory for private and public companies and for public entities of direct and indirect administration. The observance of Regulatory Norms does not exempt companies to obey other conditions that are included in municipal or state civil work standards or sanitary regulations, derived from conventions and union work agreements. It is important to observe in Brazilian legislation that Federal Government, States and Municipalities have autonomy to legislate and standardize certain subjects. There is a common band, of legislative competence intersected by the three spheres of public authority. These subjects are listed in Article 24 of Federal Constitution, such as subject related to pollution control and to the Conservation Units. However, Article 22 of Federal Constitution lists subjects that are Federal Government private competence, as subjects related to marine area, ports regime, energy and exploration of deposits, mines and other mineral resources. Therefore, the legislation and fiscalization of oil and gas exploration and production activities are accrued to Federal Government through IBAMA and ANP.
2 Presentation In Brazil, the oil and natural gas activities exploration is the object of a specific license Law #. 9478 dated 08/06/97, which governs the national energy policy and the activities related to the oil monopoly, amongst others. On the other hand, the Federal Constitution CRFB/88, in its art. 177, item I, foresaw as a Federal Government monopoly the research and exploration of oil and natural gas pits as well as other fluid hydrocarbons, as well as, in its item IV the offshore transport of crude oil of Brazilian origin or basic oil by-products produced in the Country, like the transport, through pipeline, of its by-products and natural gas of any origin. In 1995, Constitutional Amendment # 9 altered the wording of paragraph 1 of art. 177 of CRFB/88, allowing the Federal Government to contract state or private companies to perform the activities foreseen in items I to IV of this same article. The referred Law # 9.478/97, lists amongst its principles and objectives the protection of the environment (item IV). According to this legal instrument all rights to explore and produce oil and natural gas within the national territory, comprising the onshore section, the territorial sea, the continental shelf and exclusive economic zone, belong to the Federal Government, its administration being the responsibility of ANP1 (art.21). It also determines, in its art. 23 that the exploration activities, development and production of oil and natural gas shall be exercised after concession contracts, preceded by a bidding, as set forth in this Law. In 1998, the National Petroleum Agency ANP and Petrobras signed a concession contract for the exploration and production of offshore natural gas and oil in the Brazilian coast. Since then, IBAMA, in cooperation with ANP has been working in the organization of information on the sensitive environmental areas, as a means to guide the undertakings regarding the licensing of activities as foreseen in the Bidding Rounds. As explained by Paulo Affonso Leme Machado (in, Direito Ambiental Brasileiro) the granting of the concession does not waive the need of an environmental licensing according to art. 10 of Law # 6.938/81. Thus, ANPs decision-making process does not substitute the environmental study procedures foreseen by the countrys legislation. It must also be noticed that, according to art 44, item V of Law # 9.478/97 the concessionaire must bear the civil responsibility for the acts of its representatives, indemnifying any and all damages derived from the exploration, development and production activities contracted, reimbursing ANP or the Federal Government for any onus these may incur as a consequence of eventual requirements caused by acts for which the concessionaire is responsible for (objective liability).
Whatever is the civil responsibility attributed to the enterprising, the bestowed or company responsible for the operation may criminally respond when harmful activities or behaviors to the
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ANP - National Petroleum Agency.
environment are detected. Law # 9.605, de 12/02/98, regulated by Ordinance # 3.179/99 arranges about penal and administrative sanctions derived from harmful activities to the environment. It typifies some environmental crimes, e.g., to promote the perishment of the aquatic fauna in rivers, lakes, dams, bays or Brazilian jurisdiction waters (art.33) by the emission of effluent or material leaching; to cause the pollution of any sort at levels that may damage humans health or provoke the animals slaughter or significant destruction of the flora (art. 54), as well as, install or perform any potentially pollutant work or service at any part of the national territory without the proper license or authorization of the competent environmental organs (art. 60). Note that any citizen can be legitimate part to propose any popular action that intends to override the harmful behavior to the environment and the cultural historical patrimony, as arranged in art. 5, paragraph LXXIII of the Federal Constitution. 3 ANP and Petroleum Law _ Law # 9.478/972 All rights to petroleum and natural gas exploration and production in Brazil, included the onshore area, the territorial sea, the continental shelf, and the exclusive economic zone, are federal property, and must be administered by the ANP (art. 21, Law 9.478/97). The National Petroleum Agency ANP (Agncia Nacional do Petroleo) was created by Law # 9.478, of August 6, 1997 witch disposes concerning national energy policy and activities related to the petroleum monopoly, and institutes the National Council or Energy Policy (Conselho Nacional de Poltica Energetica) and the ANP. However, the ANP is an instrument of the National Energy Policy specifically involved with the oil and gas sector. The Petroleum Law, in article 7, establishes the ANP as an entity integrated within the Federal Administration, subjet to the special autarchic system as a regulative body for the petroleum industry and is connected with the Ministry of Mining and Energy. In conformance with art. 8, the ANP has the goal of promoting the regulation, hiring and monitoring of economic activities integral to the petroleum industry, amongst them: - to implement, with its sphere of duties, national petroleum and natural gas policy, set forth in the national energy policy in terms of Heading I of this Law, with an emphasis on guaranteeing the supply of oil derivatives in every national territory and protecting the interests of consumers as to prince, quality and availability of products; - to promote studies for delimiting blocks for the concession of activities of exploration, development and production (ANPs Administrative Rule # 84/00, ANPs Administrative Rule # 283/01, ANPs Administrative Rule # 114/01, ANPs and INMETRO Administrative Rule # 1/00)
In Appendix.
- to promote the execution of geological and geophysical services applicable to oil-related testing aimed at the gathering of technical data intended for commercialization in non-exclusive bases (ANPs Administrative Rule # 188/98, ANPs Administrative Rule # 9/00, ANPs Administrative Rule # 75/00, ANPs Administrative Rule # 76/00, ANPs Administrative Rule # 259/00, ANPs Administrative Rule # 283/01); - to prepare publications and promote bids for granting exploration, development and production, heeding current contracts and monitoring their execution (ANPs Administrative 84/00, ANPs Administrative Rule # 90/00, ANPs Administrative Rule # 279/03; - to monitor directly, or through agreements with bodies of the States and Federal District, activities integral to the oil and gas industry, as well as to apply administrative sanctions and penalties foreseen by law, regulation or contract (ANPs Administrative Rule # 123/00, ANPs Administrative Rule # 234/03, ANPs Administrative Rule # 100/00 and section V, art. 43, III of the Law #9.478/97); - to draw up documents with a view to declaring of public interest, for the purposes of the appropriation and establishment of public easement, areas necessary for the exploration, development and natural gas, and construction of refineries, pipelines and terminals; - to carry out good conservation practices and the reasonable use of oil, its derivatives, natural gas, and to preserve the environment (ANPs Administrative Rule # 3/03, Decree # 3.665/00, ANPs Administrative Rule # 14/00). The supervision of the activities related to petroleum industry and the national supply of fuels will be performed by National Petroleum Agency ANP (Decree # 2.953/1999). ANP supervision will also comprise the construction and operation of installations and equipments destined to any activity related to petroleum industry and the national supply of fuels. ANP supervision will be directly exerted or intermediated by the institution of the Public Administration, Federal Government, States and Cities through agreements, in which the conditions of the feature performance are already defined, with de delegation of powers to the infractions evaluation, instruction and judgment of the filings and application of the penalties. Note that any citizen that verifies infraction can conduct representation to ANP to the effects of the exert of the policy power. The petroleum and natural gas exploration, development and production activities must be carried out through concession contracts, preceded by tender (art.23, Law # 9.478/97). Only enterprises complying with the technical, economic and legal requirements established by the ANP may obtain a concession to explore for- and produce petroleum and natural gas.
The article 24 establish that the concession contracts3 must comprise two phases: exploration and production. The exploration phase will also include the appraisal activities of eventual discoveries of petroleum or natural gas, with the purpose to assess their commerciality and the production phase will also include the development activities. In the case of successful exploration, the concessionaire4 shall submit the relevant development and production plans and projects to the approval of the ANP. The concession contracts are for determined stated period and must contain the duration of the exploration phase and the conditions for its extension. The contract must establish that the concessionaire is obliged to immediately report the discovery of any accumulation of petroleum, natural gas, other hydrocarbons or minerals to the ANP; make the appraisal of the discovery, under the terms of the program submitted to the ANP, presenting a report on its commerciality, and informing its interest in developing the field; submit to the ANP, the development plan of any field declared commercial, including investments schedule and estimates. The concessionaire can present ANP a Discovery Evaluation Plan and perform a test of Long Duration Well before presenting the Development Plan, in order to better evaluate the discovery, accumulation of petroleum, natural gas, other hydrocarbons or minerals. According to ANP Ordinance # 259, December 5th, 2000, the concessionaire that decides to evaluate a discovery is obliged to present ANP the Discovery Evaluation Plan, in the term established in the Agreement of Exploration, Development and Production Grant. It must be started only after the environmental licensing of the activity. The Development Plan is regulated by ANP Ordinance # 90, May 31st, 2000. This Ordinance defines the content and establishes procedures related to the presentation template of the Plan. This Regulation is applicable to the initial development of fields still not explored, fields in production that require complementary plans or alterations to the improvement or restart of the production. The Development proposed to each petroleum or natural gas field must attend the basic principles below numbered, which are mandatory to the approval of the Development Plan: a) guarantee the conservation of petroliferous resources, corresponding to: the effective recovery of hydrocarbons of the petroleum and natural gas deposits, the control of the resources decline and the minimization of losses on the surface; b) guarantee the operational safety that strikes the use of norms and procedures regarding the occupational safety and the prevention of operational accidents; c) guarantee the environmental preservation, which considers the use of processes that minimize the impacts of the operations to the environment.
Contracts celebrated for the ANP (National Petroleum Agency). Law # 8.987, of February 13, 1995. Art. 1 The concessions of public services and public works, and permissions for public services shall be regulated by the terms of srt. 175 of Federal Constitution, by this Law, by pertinent legal rules and provisions of indispensable contracts. 4 Grantee.
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The Plan must present the following information and itemisation: (i) executive summary; (ii) field localization; (iii) geology and reservoir, showing information about the exploration historical, geological model of the field area and reservoir, and reservoir engineering; (iv) Reserves, presenting the description of all reserves per reservoir; (v) prediction of the production and fluid mobilization; (vi) wells; (vii) Collection system of the production; (viii) unit of production; (ix) fluids processing and utilities; (x) production draining system; (xi) field deactivation; (xii) activities timetable; (xiii) economical viability assessment, considering the investiment, operational costs, field deactivation costs, taxes as government take, tributes, and others, and (xiv) required reviews. About investments, the concession will have to pay to ANP for the government take. In the article 45 dispose on the following government take, foreseen in the bidding announcement: signature bonus; royalties; special participation and fees for the occupation or retention of area. Note that the royalties benefit during the production phase has been wakening the interest of the society in the offshore activities. The petroleum royalties are a financial compensation given to the State by the companies that explore and produce petroleum in the country. It is a remuneration to the society for the exploration of a scarce resource and not replaceable(Law # 7.990/89 and Law # 9.478/97). The royalties are calculated by the production value, which generally corresponds to 10% of the total estimated value. The operator must gather the value referring to the royalties and send it to National Petroleum Agency - ANP. The Agency is also responsible for the calculus, apportionment and the distribution of the parcels in debt. The value is apportioned among the State, Cities and the Federal Government. About environmental, the contracts of concession are extremely generic with respect to the inclusion of provisions referring to performance and with respect to environmental legislation and the obligations resulting from them. A model was adopted which, in practice, has left all environmental questions to the regulatory field, excluding them from the contracts ambit. It is obvious that, in the way in with the contracts are established, environmental advantages and disadvantages exist. The main disadvantage, whether to the contracting party or to the environment, is that the environmental exigencies to be implemented throughout the contract are not properly established. They will vary according to the whims of those who, at any determined moment, exercise environmental regulatory functions. In to plans of development, there are determinations concerning their minimum contents, which should contain licensing requirements and impact and environmental studies, and other provisions which may be necessary for applicable legislative force of the instructions of ANP, or recommended in accordance with the best practices of the petroleum industry. In this case, the concessionaire assume and respond wholly and objectively for losses and damages caused, directly or indirectly, by the operations and their execution independently of the existence of blame, as to third parties the ANP and Union (art. 26, Law # 9.478/97).
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The concessionaire has the exclusive right to perform operations in the area of concession, obligating him to plan, prepare, execute and control the operations in a diligent, efficient and appropriate manner, in accordance with the best practices of the petroleum industry, always respecting contractual and legal dispositions, as well as other rules in force, including those concerning operations issued by, or witch come to be issued by, the ANP, and to not practice any act which entails or could entail an infraction of the economic order. In resume, the concessionaire is obligated to adopt, in all operations, the necessary measures for the conservation of reservoirs and other natural resource, the safety of personnel and equipment, and the protection of the environment (art. 44, I Law # 9,478/97). 4 - Environmental In its art. 225 the Federal Constitution protects the environment, determining that all are entitled to an ecologically balanced environment, as well as the common use by the people, being essential to a healthy life quality. Therefore the Public Power and the collectivity have the duty to protect it and maintain it for future generations. In order to assure the effectiveness of this right, it has been determined that the Public Power is responsible for, amongst other things, demand, according to the law, a previous study of the environmental impact, for the implementation of works or activities which may potentially cause a significant degradation of the environment, in special about Conservation Unit (Law # 9.985/00) existing in the activity influence area, which shall be fully informed. It is further determined that the conducts and activities considered harmful to the environmental shall subject the violators to penal and administrative sanctions, irrespective of the repairs to the damage caused. Through the Environmental Impact Study, the positive and negative impacts of project`s exploration, and subsequent products oil, can be evaluated and mitigation measures can be incorporated at different stages. The study, serves as a technical-scientific project, pointing out the mitigation measures and subsidizing licensing administrative procedures. It is also a public information document for discussions with the community. The Environmental Licensing for Oil Industrys Activities The Brazilian environmental licensing is a legal obligation prior to the installation of any potentially polluting or environmentally degrading undertaking or activity. Hence, all undertakings which may potentially cause pollution or environmental degradation, or yet those using natural resources, require environmental licensing. It is worth stressing that the licensing of offshore oil activities is the responsibility of IBAMA (Law # 7.735/89), and is performed by the Oil Licensing Coordination, organized at Licensing Office of Petroleum and Nuclear Activities ELPN/IBAMA. The ELPN is IBAMAs Executive Management in Rio de Janeiro.
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The main guidelines for the environmental licensing, not only on a federal level to be carried out by IBAMA, but also on a state level carried out by the state environmental offices, are expressed in Law # 6.938, dated 31 August 1981 and in CONAMAs Resolutions # 001/86 and 237/97. According to the provisions contained in these legal instruments, it is IBAMAs responsibility to license considering the technical analysis carried out by the State and Municipalities environmental offices the undertakings and activities with significant environmental impact within a national or regional scope, described below: located or developed jointly in Brazil and in a bordering country; in the continental shelf, exclusive economic zone; in indigenous lands; in a conservation unit belonging to the Federal Government; as well as in its subsoil and aerial space, whenever these influence the ecosystem or when integrated in its limits; located and developed in two or more States; whose environmental impacts surpass the territorial limits of the country or of one or more States; military bases or undertakings, whenever applicable. In these cases, IBAMA shall provide the licensing after considering the technical examination required by the States and Municipalities environmental offices where the activity or undertaking is located, as well as, whenever applicable, the report from the other competent offices of the Federal, State and Federal District Governments, as well as the municipalities involved in the licensing process( Conama Resolution # 237/97, art. 4, 1). Conama Resolution # 23/94 refers to the specific licensing of the activities related to the exploration and mining of liquid fuels and natural gas pits. Establishing in its art. 3, that the mining and exploration of liquid fuels and natural gas pits shall depend on the previous environmental licensing pursuant to the terms of this Resolution. It must be stressed that the licensing process on a federal level (IBAMA) is carried out in a participating way, and IBAMA takes into account the technical examinations carried out by the State and Municipality environmental offices, as well as, whenever applicable, the report from other competent offices of the Federal, State Federal District and Municipal offices involved in the procedure. The state and municipal offices involved participate through reports considered along with the other criteria during the environmental analysis process carried out by IBAMA. This participation also occurs through contributions to prepare the Term of Reference and follow up of inspections and Public Hearings (Conama Resolution # 09/1987). The documents guiding the environmental license requirement should also contain the Municipal Town Hall certificate, stating that that type of undertaking and the respective installation site comply with the legislation on the use and occupation of soil.
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Mandatory Environmental Licenses The environmental permitting process is designed to meet the needs of both the company as well as the community, which is represented by environmental agencies and non-governmental organizations. By requiring technical assessments and environmental impact studies, agencies, and later the community during public hearings, have the opportunity to evaluate the environmental feasibility of the projects, and, where applicable, establish requirements that must be incorporated during the stages of licensing. Environmental licensing is regulated by CONAMA Resolution #237/1997. In general, any activity that can potentially cause signification impacts on the environment, for example a development production. In this case the ELPN/IBAMA requires the following licenses: Preliminary License (LP): This is granted during the project`s planning phase, approving its location and conception, attesting to its environmental feasibility and establish basic guidelines to be accomplished in the subsequent stages of licensing. Installation Licence (LI): This authorizes the implementation of the project in accordance with the plans and specifications, including environmental control measeures, and; Operation License (LO): This authorizes the operation of the project, following the effective verification that all measeures required in earlier licenses, including environmental control measures, have been met, and may establish requirements that must be complied with during the useful life of project.
In accordance with the CONAMA 237/1997 prior to obtaining licenses, the competent environmental agency will define the environmental study that will be necessary to obtain a permit, keeping in mind the specific characteristics of the project and its potential to impact the environment. In ordere to provide for a flexible process, the permitting agency may, in specific cases, expedite licensing in accordance with the nature, characteristics and phase of the activity or project. CONAMA may also, if it deems necessary, require specific environmental licenses, observing the nature and characteristics of licensing process with the steps of planning, implementation and operation. To the exploration projects the ELPN/IBAMA comes applying the Conama Resolution # 023/94, establishes in its art. 5 the environmental licenses necessary to the development of activities connected to the oil industry. Namely: PREVIOUS DRILLING LICENSE LPper, authorizes the drilling activity; the undertaker is to present, for the granting of this license, the Environmental Control Report RCA, referring to the activities and delimitating the intended area of action.
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PREVIOUS RESEARCH PRODUCTION LICENSE LPpro, authorizes the production for the research of the economic feasibility of the pit; the undertaker is to present, for the granting of this license, the Environmental Feasibility Study EVA; INSTALLATION LICENSE LI, authorizes, after approval of the EIA or RCA and contemplating other existing environmental studies in the area of interest, the installation of the units and systems necessary for the production and flow. OPERATION LICENSE LO, authorizes, after approval of the Environmental Control Project PCA, the commencement of the operations in the undertaking or units, installations and systems integrating the activity in the area of interest.
The Conama Resolution # 023/94, lists also, in art. 6, the necessary management instruments for the concession of each of the environmental licenses: ENVIRONMENTAL IMPACT STUDY EIA and the respective RIMA, according to the general guidelines established by Conama Resolution # 001, dated 23 January 1986.
The Conama Resolution # 001/86 which establishes norms for the elaboration and presentation of these two documents, the EIA ( Environmental Impact Study) is a technical document and the RIMA ( Environment Impact Report) is directed to the layperson, guaranteeing the ample dissemination of the project and potential impacts. The EIA/RIMA is evaluated by the community during a public hearing and, finally, approved by the corresponding environmental council. ENVIRONMENTAL CONTROL REPORT RCA, prepared by the undertaker, containing the description of the drilling activity, environmental risks, identification of impacts and mitigating measures; ENVIRONMENTAL FEASIBILITY STUDY EVA, prepared by the undertaker, containing the production development plan for the intended research with environmental assessment and indication of control measures to be adopted; ENVIRONMENTAL ASSESSMENT REPORT RAA, prepared by the undertaker, containing environmental diagnostic of the area where the activity is implemented, description of new undertaking or expansions, identification and assessment of environmental impacts and mitigating measures to be adopted, considering the introduction of other undertakings; ENVIRONMENTAL CONTROL PROJECT PCA, prepared by the undertaker, containing the executive projects for the minimization of the environmental impacts assessed in the LPper, LPpro and LI stages, along with the respective documents.
The data mentioned above comes from the project information and the approval of the development plan sent to ANP. The Concessionaire must require the environmental license of
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the activity from IBAMA through a letter protocoled in the Licensing Office of Petroleum and Nuclear Activities ELPN/IBAMA. Regarding the development of production field, a installation license must be solicited. The environmental institution will issue the Reference Term (TR) to the elaboration of the Environmental Impact Study EIA/RIMA. The Reference Term solicitation must present the following information: - descriptive memorial of the project; - georreferenced localization map (block or field) where the activity will be performed; - grant contract showing the enterprising as an operator. The ELPN/IBAMA with the aid of the Concessionaire will define the documents, projects and environmental studies required to the beginning of licensing process, as established by Art. 10, Paragraph I, Resolution CONAMA # 237/97. Currently, the ELPN/IBAMA proceeds the publishing of the Reference Term sent to the enterprising. The Concessionaire can request ELPN/IBAMA a meeting to discuss, clarification and adjustments of the Reference Term (TR). The Reference Term will contemplate, at least the following data: identification of the enterprising activity characterization of the activity General description of the activity influence area of the activity environmental diagnostic environmental impacts identification and evaluation risk assessment and management mitigating and compensating measures and environmental projects (effluents and wastes management, biota monitoring, social communication, employees training and Emergency Action Plan, etc) The CONAMA Resolution # 23/94, the norm relating to the licensing of activities of the petroleum industry, does not establish standards for environmental quality as a criterial base for licensing exigencies and conditions. The licenses are composed by two groups of conditionings: (i) general conditionings, which comprise the assembly of legal requirements related to the environmental licensing, and (ii) specific conditionings, which comprise the assembly of technical requirements and restrictions associated, particularly, with the activity to be licensed. The validity of the environmental license depends on the compliment of the conditionings discriminated, which must be attended until the respective terms. The other constant appendixes of the process are integrant of the license body, though they are not transcribed in it. Note that the official language of the Federative Republic of Brazil in the Portuguese language, Art. 13 of the Constitution. Consequently, all documents related to the process must be written in Portuguese.
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About standards for environmental quality and environmental licensing of activities of Petroleum Industry, among the general norms concerning environmental licensing, only Decree # 99.274/90 generically deals with the standards for environment quality. Article 18 establish that: the state body for the environment is IBAMA, in supplementary Charcter, without prejudice to reasonable pecuniary penalties, shall determine, whenever necessary, the reduction of pollution-generating activities, in order to maintain gaseous emissions or liquid effluents and solid residues with conditions and limits stipulated in the granted license. Due to the enormous quantity of norms applicable to the environmental licensing, to cite some norms that must be respected during the operation: Law # 9.985, dated 06/18/2000 - National Nature Conservation Units System / SNUC Regulates art. 225, 1, items I, II, III, and VII of the Federal Constitution and implements the National Nature Conservation Units System SNUC. According to provisions of art. 36, in the cases of environmental licensing of undertakings presenting significant environmental impact, considered as such by the competent environmental office, based on environmental study, the undertaker must support the implementation and maintenance of a conservation unit of the Full Protection Group, namely: Ecological Stations, Biological Reserves, National Parks, Natural Monuments and Sylvan Life Shelters. The sum of the funds to be provided by the undertaker, for this purpose cannot be less than 0,5% of the total costs foreseen for the implementation of the undertaking. It is the licensing environmental offices responsibility to establish the percentage according to the level of environmental impact caused by the undertaking, as well as to define the conservation units to be benefited, considering the proposals presented in the environmental study and after hearing the undertaker. The Decree # 4.340/02 regulates the articles of Law no 9.985/2000, which refers to the National Conservation Units System SNUC. Law # 9.605, dated 02/12/98 Environmental Crimes Law Refers to the penal and administrative sanctions derived from the conducts and activities prejudicial to the environment, regulated by Decree # 3.179/99. Typifies some environmental crimes, such as, for example, through the emission of effluents or dislocation of materials, the perishing of aquatic fauna species which exist in rivers, lakes, dams, lagoons, bays or Brazilian jurisdictional waters (art.33); the pollution of any nature, at levels which result or may result in damages to human health or which cause death of animals or significant destruction of flora (art. 54), and also, the installation or causing of the operation, in any part of the national territory, of potentially polluting works or services, without the due license or authorization from the competent environmental offices (art. 60).
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The decree # 3.179, dated 09/21/99 it refers to the specification of sanctions damaging the environment. It considers as environmental administrative breach all action or omission breaching juridical rules governing the use, enjoyment, promotion, protection and recovery of the environment. Other norms about the subject: Conama Resolution #2 date 18/04/1996, Conama Resolution #10 date 14/12/1988, Conama Resolution #13/1990. Law # 5.197, dated 01/03/67 Fauna Law It refers to the protection of fauna. Art. 1 protects animals of any species which live naturally outside captivity constituting the sylvan fauna as well as nests, shelters and natural nurseries, forbidding the use, chase, destruction, hunt or collection. Furthermore the professional hunting activity (art. 2) and the commerce of sylvan fauna specimens as well as products which imply in hunting, chasing, destruction or collection (art. 3) are also forbidden. 5 - Health, Safety and Environment As previously stood out, the concessionaire responds for all costs and risks related to the operation, and even to third party contracting. The legislation describes the principles to risk control and minimization in the process of development and production, including workers safety, damages to the community, the environment or goods, as well as the minimization of environmental impacts. HSE comprises preventive actions and workers training to transport oil, gas, wastes and other products, in order to adequate the installations and equipments to a safe operation of the activity. By this way, the legislation foresees applicable procedures to the control of pollution, wastes management, environmental risks management and individual emergency plan. The activities must be developed in conformity with the main rules: Oil Pollution Control in Waters of National Jurisdiction - Law # 9.966 dated 04/28/2000 It refers to the prevention, control and inspection of pollution caused by the release of oil or other noxious or dangerous substances in waters of the Brazilian jurisdiction. The sole paragraph of art. 1 establishes that this law shall be applied in the absence of the presuppositions for the application of the International Convention for Pollution Prevention Caused by Ships (Marpol 73/78), ratified by Brazil, or in complement thereof. According to this legal instrument, every organized port, port facility and platform, as well as its support facilities shall necessarily count on facilities or adequate means to receive and treat several types of residues and to combat pollution, observing the norms and criteria set forth by the competent environmental office (art 5). It determines further that the facilities or means
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aimed at receiving and treating residues and pollution combat may be required to the port facilities specialized in other cargos which are not oil and noxious or hazardous substances. It must be stressed that the institutions exploring organized ports and port premises and the owners or operators of platforms should prepare an internal procedures manual to manage pollution risks, as well as to manage the several residues generated or which derive from the operation and storage of oil and noxious or damaging substances, to be approved by the competent environmental office, in this case IBAMA, in compliance with the effective legislation, norms and technical guidelines. In the case of areas concentrating platforms which is the case of the Campos Basin, the individual emergency plan shall be consolidated in one single emergency plan for the whole area subject to the pollution risk, which shall establish the joint action mechanisms to be implemented. The consolidation of the individual emergency plans into one single emergency plan shall be the responsibility of the owners or operators of platforms under the coordination of IBAMA. It is compulsory that platforms and ships with a gross measurement of more than fifty, transporting oil or using it for transportation or operation, should necessarily have on board, an oil registration book, approved pursuant to the terms of Marpol 73/78, in which notes related to all oil transportation, ballast and oily mixtures will be registered, and which may be requested by the maritime authority, the competent environmental office and the oil industry regulating office. Law # 9.966/2000 determines also that the release, in waters of the Brazilian jurisdiction, of noxious or harmful substances is forbidden, including those provisionally classified as such, apart from ballast water, tank washing residues or other mixtures containing such substances. Exceptionally, the release of oil, oily mixtures, noxious or harmful substances of any category and garbage may be tolerated in order to safeguard human lives, research or ship safety. From the point of view of controlling water pollution, Brazilian legislation is based upon two criteria: receiving body together with the discharge of effluent liquids. CONAMA Resolution # 357/2005 and CONAMA Resolution # 274/2000 establish the classifications of water, disposing concerning their limits and conditions, both in relation to bodies of controlling water and to effluent liquids. In relation to the receiving body, quality standards are established in terms of preponderant uses. The salinity of water is the factor utilized for this classification, with water divided into fresh water (salinity at or less than 5%), brackish water (between 5% and 30%) and salt water (greater than 30%). Decree # 2.508/1998 Marpol 73/78 This Decree promulgate the International Convention for the Prevention of Pollution from ships, 1973, as modified by the Protocol of 1978 relating thereto (Marpol 73/78).
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This Convention is very extensive; many mechanisms of prevention and pollution control are created, instituting reports, surveys and inspections certificates of ships that operate at marine environment. The so called Marpol 73/78 is currently considered the international norm of greatest importance in the prevention of marine pollution caused not only by petroleum, but also by other harmful substances. The implantation of the Port State Control is considered a significant advance in the prevention of marine pollution by oil, which is the Portuary State Control that guarantees the inspection of ships coming from any country, consonant to the norms and the established standards, among other Marpol instruments that grants the ports the autonomy to detain suspected ships until the elimination of harmful risks to the environment. Marpol was completed by Law # 9.966/2000 as it is a Convention to ships, this law enables that the situations not contemplated by Marpol, which comprise the installations of ports, companies or any other installations that were undergone the prevention norms. Decree # 2.870/1998 The International Convention about Preparation, Response and Cooperation in case of Oil Pollution (OPRC 90), celebrated in London on November 30th, 1990 was approved by Legislative Decree # 43, on May 29th, 1998, and promulgated by Decree # 2.870, on December 10th, 1998. It is a Convention of cooperation among the States worried about the preservation and prevention of the damages to the environment, to which one State may seize cooperation from others, when there is an accident. Besides, it predicts the establishment of national plants of contingency by the governments, as well as to ships and installations where there is risk of pollution, emergency plans capable to effectively respond to the incident, and provided by technical staffs properly trained. Other norms about the subject: Decree # 76.389/75 e Decree # 79.437/77, Decree # 87.566/1982, Decree # 98.044/1988, Decree # 98.973/1990 and CONAMA Resolution # 5/1993. 5.1 - Environmental Risk Management and Individual Emergency Plan Individual Emergency Plan - Conama Resolution # 293, dated 12/12/2001 The Individual Emergency Plan presents the minimum content to pollution accidents by oil coming from organized ports, terminal installations, piping, platforms, as well as their respective support installation. This resolution considers the need of the establishment of guidelines to the elaboration of the Individual Emergency Plan, arranged in Lei # 9.966, April 28, 2000, as well as the need of the establishment of environmental impacts prevention and management by organized ports, port or terminal installations, piping, platforms and their respective support installations registered all over the country.
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The presentation of the referred Plan shall occur upon the environmental licensing and its approval, at the concession of the Previous Drilling License. - Appendix I of this Resolution presents the minimum content to the elaboration of the Individual Emergency Plan. - Appendix II presents bibliographic information to the elaboration of the Individual Emergency Plan. - Appendix III shows the criteria to the Dimensioning of the Minimum Capacity of Response. ANPs Administrative Rule # 3, dated 01/10/2003 It establishes the procedure for the communication of incidents to be adopted by the concessionaires and companies authorized by ANP to exercise exploration, production, refining, processing, storage, transport and distribution activities of oil and its by-products and natural gas, biodiesel and a mixture of diesel/biodiesel oil, whenever applicable. It understands as incident any event which occurs due to an intentional or accidental fact or act involving: risk of damage to the environment or human health; damage to the environment or human health, losses to its own or any third partys assets; fatalities or severe injuries for its own or any third parties personnel or for the population; or the interruption of unit or facilities operation for more than 24 (twenty four) hours ( 1 of art. 1). The concessionaire or the authorized company is responsible for immediately informing ANP on oil spillages and release of noxious or hazardous substances derived from its own or any third parties facilities or units reaching its concession or authorization area or waters under national jurisdiction and it shall also present, within a maximum of 48 hours, as of the verification of the event, the Incidents Report related to the incidents coming from its own facilities or units. Plans for the combat of pollution caused by oil in waters of the national jurisdiction - Decree # 4.871 dated 11/06/2003 It refers to the implementation of the Area Plans for the combat of pollution caused by oil in waters of the national jurisdiction. Paragraph 2 of art. 3 establishes that it is the responsibility of the competent environmental office to, amongst other things, coordinate the preparation of the Area Plan, after discussion with the public and private institutions involved. This plan shall contain, at least (art. 4): an environmental sensitivity map, identification of accident scenarios requiring the activation thereof, physical characterization of the area, criteria for availability and replacement of foreseen resources, communication plan, training programs and simulation exercise instruments for the integration with other Plans, ending criteria, procedures for the communication between involved institutions and response in the event of oil pollution incident of unknown origin or which cannot be immediately identified. Other norms about the subject: Decree # 4.136/02; Decree # 5.098/2004, Conama Resolution # 3/1990, Conama Resolution # 5/1993, Conama Resolution # 269/2000, Conama Resolution #
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274/2000, Conama Resolution # 306/2002, Conama Resolution #313/2002, Conama Resolution # 314/2002, Conama Resolution # 316/2002, Conama Resolution #357/2005; ANPs Administrative Rule no 3/03; IBAMA`s Administrative Rule # 64-N/92; IBAMA`s Administrative Rule # 28/01; MMA`s Administrative Rule # 09; MMA`s Administrative Rule # 16; NBR ABNT 10.004/87; NBR ABNT 12.235/88 e NBR ABNT 13.221/94. 5.2 - Work Safety The work regime of the employees in the activities of petroleum exploration, drilling, production and refining and in the correlated areas, e.g. the petrochemical industry and the transport of petroleum and its derived is regulated by Law # 5.811, of October 11th, 1972. However, the personnel security is differently dealt; once the security rules and norms to the personnel that work at platforms are regulated by NR-30 of the Employment and Work Ministry. According to Employment and Work Ministry, the companies are obliged to elaborate a Program of Occupational Health Medical Control PCMSO, objecting the preservation of the personnel health, as arranged in NR 07. Regarding aquivirios5 workers, the NR-30, in Index II numbers the examinations that must be performed in the PCMSO plan. NR 30 The NR-30 explicits all rules related to the health and safety in the personnel job, in the offshore petroleum exploration and production sectors, industrial fishing and others. In Merchant Ships of national flag with more than 500 brute gauging (AB), the constitution of a Health and Safety Group in the Onboard Work (GSSTB) is compulsory, which under responsibility of the ship officer. According to art. 30.4.9.1, in other vessels, the officer must communicate and inform the legal norms and sanctions that may occur when the noncompliance of the Regulated Norms, referring to the onboard work. Besides the terms referring to health protection, the norm also establishes rules related to the conditions of work, hygiene, feeding, onboard comfort, cleaning and the vessel support. The security rules of the aquivirio traffic must also be observed in Brazilian jurisdiction, as described in Law # 9.537/97. Other norms about the subject: NR-06; NR-07, NR-09; NR-15; NR-25; NR-29; According to the report of the International Labor Organization ILO, 1993 _ Labor Safety in Offshore Oil Facilities and Connected Matters ", amongst the difficulties indicated in the report to improve the quality of labor conditions, there are the difficulties in the regulation of numerous mobile facilities which require determined criteria, particularly to reduce to a
5
People who work embarked.
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minimum the duplication, avoiding conflicts between municipal, state and federal legislations, apart from international maritime agreements. The diversity of characters and regulating and inspecting institutions as for example, the Navy and several public offices in the health, labor and environment areas, apart from powerful political and economic interests involved, turn regulating and inspection activities in the area even more complex. The Offshore Work is currently being debated at the ILO conference; between 7 to 23 February there will be the Offshore Meeting at the 94th International Labor Conference of the International Labor Organization (ILO), in Geneva, Switzerland. It aims at analyzing the norm deemed important for the sector: the Coinvention on Offshore Labor, 2006. The convention project establishes the right of circa 1.2 million offshore workers, so that they can enjoy decent labor conditions, including topics such as health, social security, minimum age, recruiting and working hours, amongst others. If approved, the Convention will consolidate and update more than 65 international labor norms adopted along the past 80 years. According to the project, the countries should estabish a more efficient control system, supported by a certified method and regular inspection to assure its compliance. To maintain the Convention updated, the ILO proposes a simplified amendment procedure allowing the latter to keep up to date with constant changes in operations and offshore transport technology. The objective of the Convention project is also to avoid unlawful competition. A clause prevents ships from countries which do not ratify the Convention from being treated in a more favorable way than ships which hold flags from a signatory Country. In this meeting, Brazil presides the Selection committee and integrates the Steering Committee of the Conference. Concomitantly, ANP presents a regulation proposal to the operational security in marine activities of exploration and production. This project is still being developed. The Resolution draft is based on the international legislation, especially in countries as Norway, United Kingdom, Canada, USA and Australia. The proposal consists of the development of an Operational Safety Management System- SGSO to be applied in the production and exploration activities until the end of 2005, establishing the concessionaire responsibilities and ANP attributions related to the theme. Firstly, the proposal intends to adjust the SGSO with the characteristics of the installation, so that the concessionaire or the operator must inform ANP how the safety management will be conducted in the installation. According to the proposal, the concessionaire is responsible for operating the SGSO in the installation, perform the internal audition of the SGSO; verify whatever the safety critical elements are and also send ANP the documentation of operational safety as foreseen in the technical. The following documents must be in the proposal: (i) Operational Security Program; (ii) Report of Technical Information and Operational Security; (iii) Report of Critical Elements of Occupational Security.
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Regarding ANP attributions, the agency must analyze the documentation presented by the concessionaire, accomplish the SGSO Auditions of the Installation, inspect the critical elements of occupational security in the installation, investigate the accidents occurred and apply penalties/sanctions in case of nonconformity with the technical regulation and the other applicable norms. Once this proposal is implemented, the Resolution will comprise the maritime installations of drilling unities, as well as the production and storage unities (FPSO and FSO). The greatest impasse to the current implementation of this Resolution is the conflicts of attributions and competence among ANP, Employment Ministry and IBAMA to the regulation and inspection of the issue. Note that there is no norm in Brazil that specifically arranges the work in maritime unities of natural gas and petroleum exploration and production. 6 - Technical Responsibility The layer Bianca Maria Abreu Mazurec, from ENSR International Brasil Ltda., was the responsible for the preration of this report.
Profissional Registry 117000 OAB/RJ IBAMA Registry 323397
Name Bianca Maria Abreu Mazurec
Profession Lawyer and Sociologist
Signature
7 Bibliography ANP National Petroleum Agency, Brazilian Legislation. www.anp.gov.br. Antunes, Paulo de Bessa. Proteo Ambiental nas Atividades de Explorao e Produo de Petrleo. Lmen Jris. Rio de Janeiro,2003. En Cana, ENSR International Ltda. RCA - ENVIRONMENTAL CONTROL REPORT BM-C- 7. Rio de Janeiro, 2002. MTE Mistrio do Trabalho e do Emprego. Normas Reguladoras, Governo Federal. www.mtb.gov.br.
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Appendix Legislation
Law/ Regulation Description
All are entitled to an ecologically balanced environment, as well as the common use by the people, being essential to a healthy life quality. Therefore the Public Power and the collectivity have the duty to protect it and maintain it for future generations.
Topic covered
Main Requirements
Establishes that procedures and activities considered as harmful to the environment shall subject the infractors, be they individuals or legal entities, to penal, and administrative sanctions, without prejudice to the obligation to repair the damages caused.
Article and related Laws
NATIONAL ENVIRONMENTAL POLICY / CONSERVATION UNITS
Federal Constitution
Environmental
Article: Art. 225, Paragraph 3.
Law # 5.197/1967
It refers to the protection of fauna.
Protection of the environmental resources
The presentation of the Environmental Monitoring Project shall occur upon the environmental licensing and its approval, at the concession of the Previous Drilling License. It is important to notice that the Ministry of the Environment, Water Resources and Amazon Affairs establishes resolutions regarding species in process of extinction.
Law # 6.938/1967 And Law # 9.605/1998
Law # 6.938/1981
Establishes the National Environmental Policy with the objective of planning, inspection and control of the use of the natural resources and potentially polluting activities. Regulated by Decree # 99.274/1990.
Establishes the obligatoriness of the environmental licensing and the study of environmental impact to potentially pollutants. Protection of the environmental resources Establishes controlling instruments such as zoning and licensing; defines pollution, polluter and environmental resources; establishes strict liability for environmental damages; and establishes the National Environmental Systems (SISNAMA). Article: Art. 2, III, V, Art. 3, III, IV and V and Art. 9.
Law # 7.661/1981
Establishes the National Plan of Coastal Management. Regulated by Decree # 5.300/2004.
The presentation of the environmental projects shall occur upon the environmental licensing and its approval, at the concession of the Previous Drilling License.
The National Plan of Coastal Management. Law # 6.938/1967 Law # 9.605/1998
Law/ Regulation
Description
Refers to the penal and administrative sanctions derived from the conducts and activities prejudicial to the environment. Regulated by Decree # 3.179/99.
Topic covered
Main Requirements
Environmental Licensing and operate in conformity with procedural and environmental norms. Notice that there are specifics sanctions regarding pollution and operation without environmental license.
Law # 9.605/1998
FC art. 225, law # 6.938/1981 and Conama Resolution #23/1994.
Law # 9.985/2000
Institutes the National System of Nature Conservation Units SNUC, establishing criteria and norms for the creation, implementation and management of conservation units. Regulated by Decree # 4.340/2002.
Establishes the environmental compensation which is at least 0.5% of the project total investment and determine that the manager of the conservation unit must authorize the project when it damages the referred UC.
Art. 36 and paragraphs Conama Resolutions #13/1990 and #02/1996
Decree # 99.274/1990
Regulates the National Environmental Policy, the National Environmental System and the National Counsel for the Environment (CONAMA).
Attend the norms of environmental guidelines of the institution.
Law # 6.938/1981
Decree # 5.300/2004
Regulates the Law # 7.661/1981 and establishes rules for the use and occupation of the coastal zone and criteria for the coastal management.
Establishes the coastal management instruments such as the environmental zoning and the National Plan of Coastal Management. Art. 3, Art.7, VIII. The presentation of the Social Communication project shall occur upon the environmental licensing and its approval, at the concession of the Previous Drilling License.
Environmental Licensing ENVIRONMENTAL LICENSING

Law # 6.938/1981 Establishes the National Environmental Policy and institutes the environmental licensing process. Regulated by Decree # 99.274/1990. Environmental licensing Establishes the obligatoriness of the environmental licensing and the study of environmental impact to potentially pollutants. Art. 10 Law # 7.735/1989, Decree 99.274/1990, Conama Resolution # 237/1997
Law # 7.735/1989
Creates the Instituto Brasileiro de Meio Ambiente e dos Recursos Renovveis IBAMA (National Environmental Agency).
Environmental licensing
The environmental licenses must be sent to the licensing institution IBAMA/ ELPN
Law # 6.938/1981, and IBAMA Ordinance # 166-N/1998 which institutes ELPN
Law/ Regulation
Description
Topic covered
Main Requirements
Conama Base of evaluation of Environment Impact Resolution # Assessment and Environment Impact Report 01/1986 EIA/RIMA.
Requirements that must be attended in the elaboration of the Study of Environmental Impact EIA/RIMA
Conama Resolutions # 23/ 1994, # 237/1997
Conama Resolution # 6/1986
About the approval of templates to requirements of concession licenses.
Obligatoriness and models that must be followed to publish the environmental license.
ENVIRONMENTAL LICENSING
About the realization of Public Hearings.
A Public Hearing must be performed where the Study of Environmental Impact will be presented EIA/RIMA
Conama Resolution # 23/ 1994
Refers to the specific environmental licensing process of the activities related to the exploration and mining of liquid fuels and natural gas pits.
Requirements and procedures that must be followed in the environmental licensing of the petroleum and gas activities.
Conama Resolution # 237/1997 Conama Resolution # 281/2001
Regulates the National Environmental Licensing System.
Requirements and procedures that must be followed in the environmental licensing
Conama Resolutions # 01/1986, # 6/1986, # 09/1987, # 23/ 1994, # 281/2001, # 350/2004
Establishes that projects with not significant environment impact should have different licensing publishing templates.
Obligatoriness and simplified models to publish the licensing, to perform the renewal and concession by the competent institutions.
Conama Resolution #350/2004
Establishes rules for the environmental licensing process of seismic activities.
Presentation of Seismic Environmental Control Plan and Seismic Research License LPS.
Conama Resolution # 01/1986, # 23/1994 and # 237/1997.
Establishes minimum requirements and terms of reference to be followed in environmental audits by oil and gas industry.
Inspection and Environmental Audition
The drilling unity must be in conformity with Brazilian legislation. A biannual audition must be performed by ANP in the unities of gas and petroleum production.
Law # 9.966/ 2000, and Decree 4.136/2002
Law/ Regulation
Description
Topic covered
Main Requirements Pollution Control
POLLUTION AND ENVIRONMENTAL RISK MANAGEMENT
Law # 9.966/ 2000
Oil Pollution Control in Waters of National Jurisdiction.
Pollution control
The presentation of the Individual Emergency Plan shall occur upon the environmental licensing and its approval, at the concession of the Previous Drilling License.
The sole paragraph of Art. 1 establishes that this law shall be applied in the absence of the pre-suppositions for the application of the International Convention for Pollution Prevention Caused by Ships (Marpol 73/78), ratified by Brazil, or in complement thereof. States that even if the unloading has been authorized, the person in charge is not exempt from repairing the damages caused to the environment and from indemnifying the economic activities and the public assets for losses derived from the unloading, pursuant to the objective and full responsibility principle related to environmental damages (Art 21). Conama #293/2001 Decree # 2.508/1998 - MARPOL 73/78
Decree # 79.437/1977
Promulgate the International Convention on Civil Liability for Oil Pollution Damage, 1969.
Pollution Control
Law # 9.966/ 2000
Decree # 87.566/1982
Promulgate the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972.
Pollution Control
Law # 9.966/ 2000
Decree 4.136/2002
It refers to the specification of penalties applicable to breaches of rules related to the prevention, control and inspection of pollution Pollution Control caused by the release of oil and other noxious or dangerous substances in Brazilian waters, foreseen in Law # 9.966/2000.
Law # 9.966/ 2000
Decree # 4.871/2003
It refers to the implementation of the Area Plans for the combat of pollution caused by oil in national waters.
Pollution Control
Law # 9.966/ 2000, Conama Resolution # 293/2001
Law/ Regulation
Description
Topic covered
Pollution Control
Main Requirements
The applicability of this resolution to the prevention of pollution by gassy emissions coming from ships is in discussion.

Law # 6.938/81 Marpol 73/78, appendix 6.
Establishes the air quality standards.
Determines that the production, import, marketing and use of chemical dispersants for the combat of spillage of oil and its byproducts in the sea can only be carried out after obtaining the registration of the product Pollution Control with IBAMA, and which determines the criteria for the use and application as well as methods and forms of application of dispersant into the sea, and the monitoring, communication and assessment measures.
All registers of chemical dispersers must be annexed to PEI and they must be in conformity with Brazilian legislation. The presentation of the Individual Emergency Plan PEI shall occur upon the environmental licensing and its approval, at the concession of the Environmental License.
Law # 9.966/ 2000 and Decree # 4.136/2002
Conama Resolution # 293/2001 Conama Resolution # 314/2002
Individual Emergency Plan
Pollution Control
The presentation of the referred Plan shall occur upon the environmental licensing and its approval, at the concession of the Previous Drilling License.
Law # 9.966/ 2000, Decree # 4.136/2002, Decree # 4.871/2003
Establishes the registry of products used in remediation.
Pollution Control
The presentation of the Individual Emergency Plan - Remediation substances shall be registered before PEI shall occur upon the environmental licensing and Brazilian Institute of Renewable Natural Resources its approval, at the concession of the Environmental IBAMA for production, import, trade and use purposes. License. Law # 9.966/ 2000, Decree # 4.136/2002 The concessionaire will immediately inform ANP, as prescribed by Decree n 4.136/ 2002, oil spillages and discharge of noxious or hazardous substances coming from the facilities, their own units or units belonging to third parties reaching its concession area authorized area or waters under national jurisdiction, including discharges admitted in articles 15 and 16 of Law n 9.966, dated 28 April 2000, as applicable. Incidents are understood as any event, due to a fact or intentional or accidental act, involving:
ANP Resolution #03/2003, modified by the Resolution # 40/2004
I risk of damage to the environment or to human health; Establishes the procedures for operational accidents and accidental spill reporting, to be followed by the concessionaires and other companies authorized to conduct activities Pollution Control related to oil and gas exploration and production II damage to the environmental or human health; The presentation of the Individual Emergency Plan - III material losses to its own assets or assets belonging PEI shall occur upon the environmental licensing and its approval, at the concession of the Environmental License.
Law/ Regulation
Description
Topic covered
Main Requirements

to third parties; IV fatality or serious injuries caused to its own personnel, thrigh parties or population; or V interruption of operations at the unit or facility for more than 24 (twenty four) hours.
ANP Resolution #03/2003, modified by the Resolution # 40/2004
Establishes the procedures for operational accidents and accidental spill reporting, to be followed by the concessionaires and other companies authorized to conduct activities Pollution Control related to oil and gas exploration and production
Irrespective of the communication foreseen in art. 2 of this Administrative Rule, the concessionaire shall present The presentation of the Individual Emergency Plan - ANP, the Incidents Report related to incidents coming PEI shall occur upon the environmental licensing and from the facilities or its own units, within a maximum of 48 its approval, at the concession of the Environmental (forty eight) hours, as of the moment when events License. referred to in art. 2, are noticed. The non-compliance of the provisions contained in this Administrative Rule shall subject the violators to the penalties foreseen in Law n 9.847/1999, in Decree n 2.953/1999 and in Decree n 4.136/2002, as well as the other applicable provisions.
Decree # 96.044/1988
Approve the rules for road transportation of hazardous products.
Wastes Management
The presentation of the Pollution Control project shall occur upon the environmental licensing and its approval, at the concession of the Previous Drilling License.
Decree # 4.097/2002, ANTT and Resolution # 420/2004
Decree # 4.097/2002, ANTT and Resolution # 420/2004 Art. 30, Art. 31, Art. 41 -52 - Establishes the necessary documents for the railway transportation of hazardous products and the civil liability of expeditor, addressee, manufacturer and carrier. Emergency procedures in rules NBR 7503 e NBR 8285
Decree # 98.973/1990
Approve the rules for railway transportation of hazardous products.
Wastes Management
The presentation of the Pollution Control project shall occur upon the environmental licensing and its approval, at the concession of the Environmental License.
Decree # 2.508/1998
Promulgate the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol f 1978 relating thereto (MARPOL 73,78)
Wastes Management
Law # 9.966/ 2000
Law/ Regulation
Decree # 3.665/2000
Description
Topic covered
Wastes Management
Main Requirements
This Decree lists in its annex the substances subjects to inspections by the Brazilian Army, among them chemical products used by the oil and gas industry.
Establishes rules regarding the inspection of controlling substances (R-105)
Decree # 5.098/2004
Establishes the National Plan for Prevention, Preparedness and Rapid Response in Environmental Emergencies regarding Hazardous Substances P2R2
Wastes Management
This P2R2 aims to prevent accidents involving hazardous products and improve the Brazilian preparedness and response system regarding chemical emergencies.
Establishes rules regarding solid waste from health system, ports, airports, and rail and road terminals.
Wastes Management
The sub-contracted companies must be in accordance with theis Resolution, especially where the support base in land is located.
Conama Resolution # 06/1991 and NBR N 10.004
Establishes that lubricant oil shall have an adequate destination in order to not damage the environment.
Wastes Management
NBR-10004
Classify Brazilian water in sweet, brackish or saline and establishes parameters for effluent disposal. Establish the color code to different types of wastes, to be adopted in the identification of collectors and carriers, as well as in the informative campaigns to the selective collection.
Wastes Management
The presentation of the Pollution Control Project shall occur upon the environmental licensing and its approval, at the concession of the Environmental License.
Wastes management
Segregation and classification of wastes in accordance with the law.
Conama Resolution # 313//2002
Establishes the National Inventory for Industry Waste.
Wastes Management
It is normally applicable in the industrial unities.
All industries listed in this Resolution shall present to the Environmental Agency information about production, characteristics, storage, transport and destination of its solid waste according to annexes I to III
Law/ Regulation
Description
Establishes procedures and criteria regarding solid waste thermal treatment.
Topic covered
Wastes Management
Main Requirements
The presentation of the Pollution Control Project Establishes operational procedures, emission limits, and shall occur upon the environmental licensing and its performance, control, treatment and disposal criteria in approval, at the concession of the Environmental order to minimize the damages to environment and public License. health, resulting from the activity of burning solid waste. The presentation of the Pollution Control Project shall occur upon the environmental licensing and its approval, at the concession of the Environmental License. The parameters established in this decree must be considered in the Risk Assessment presented in the environmental study upon the environmental licensing and its approval, at the concession of the Environmental License. Rules regarding health and safety in the local of work comprising offshore exploration and production of petroleum, industrial fishing, submerse work, and others.
Water quality and effluent disposal parameters.
Wastes Management
Conama Resolution # 274/2000 ,.
Decree # 2.870/1998
Promulgate the International Convention on Oil Pollution Preparedness, Response and Cooperation, 1990.
Risk Assessment
Law # 9.966/ 2000
NR 30
Regulates Health and Safety rules regarding sea work labours.
Sea work
NR 16
Establishes rules regarding dangerous activities and operations
Sea work
This Ordinance also defines risk areas and establishes an increase of 30% in the labour salary.
NR 09
Establishes the Environment Risks Prevention Program - PPRA
This Environmental Risks Prevention Program must be implemented in all companies that have employees in order to preserve their health and physical integrity, considering the protection of the environment and natural resources. Sea work The employer should make sure that, if environmental risks occur in work sites, placing one or more workers under a serious and imminent risk situation, the latter can immediately interrupt their activities, informing the fact to the hierarchically superior employee so that the due measures can be taken. Wastes Management Elaborate the Wastes Management Plan in conformity with this NBR.
NBR ABNT 10.004/1987
Classify solid waste regarding its risks to the environment and human health.
Conama Resolutions # 05/1993 and # 362/2005
Appendix II - PETROLEUM ACTIVITY

Law/ Regulation Description
Foresaw as a Federal Government monopoly - the research and exploration of oil and natural gas pits as well as other fluid hydrocarbons.
Topic covered
Main Requirements
Federal Constitution
exploration of oil and natural gas in Brazil
Perform the requirements stated by ANP. These requirements are published in the bidding of maritime blocks to exploration.
Article 177, I Law # 9478 de 6/08/1997
Law # 9478 /1997
The Petroleum Law
exploration of oil and natural gas in Brazil
Operate in conformity with the principles and concepts established in this law. Requirements of competence and attributions of ANP in the regulation, contract and inspection of the exploration and production activities of petroleum and natural gas.
All rights to explore and produce oil and natural gas within the national territory, comprising the onshore section, the territorial sea, the continental shelf and exclusive economic zone, belong to the Federal Government, its administration being the responsibility of ANP.
ACTIVITY
Decree # 2.455/1998
It creates National Petroleum Agency - ANP
ANP - Petroleum Agency
Law # 9.478/1997
PETROLEUM
Decree # 2.926/1999
Establishes guidelines to exportation of petroleum, its derived, natural and condensed gas, and provides other supports. Confirms the Regulation regarding the procedures to the performance of blocks bidding destined to the contracting of exploration activities, gas and petroleum development and production.
Petroleum export.
Attend the requirements established by ANP
Law # 9.478/1997
ANP # 84 / 2000 and ANP# 174/1999
Bidding and Grant Contract
Qualification regarding the company that presents technical, economical and financial qualification, juridical regulation and has paid taxes of bidding participation.
Law # 9478/99, art. 39, paragraph I. ANP 174/1999
Technical Data
ANP # 188/ 1998 Establishes the definitions to acquisition of data applicable to petroleum. Seismic Require authorization of ANP to perform by its responsibility the acquisitions of non exclusive data in sedimentary basins. Refers to the responsibility of Data Acquisition Companies (Empresas de Aquisio de Dados - EAD), of the Concessionaire and ANPs.
Exploration
ANP # 283 /2001
Establishes the procedures to the collection of rock and fluids samples from borings drilled by the operators in Brazilian sedimentary basins.
Exploration and Production of oil and natural gas
To be performing maritime drillings.
Technical Regulation ANP 4/2001( in appendix) Law # 9.847/ 1999 Results of the analysis of samples, whether from rock or fluid, as well as
Law/ Regulation
Description
Topic covered
Main Requirements

the reports and other interpretations based thereon, should be forwarded to ANP within 120 (one hundred and twenty) days, as of the date of conclusion of the Well. Law # 9.478/1997, art. 8, inc.VII Inspection activities under this Regulation are related to the exploration, development and production concession contracts for oil and natural gas, comprising also: I bidding of blocks for exploration, development and production of oil and natural gas; and II assignment of rights over concession contracts and authorizations of exploration, development and production related activities, connected to oil and natural gas.
ANP # 234 /2003
Approves the Regulation that defines the imposition procedures of applicable punishments to the infractors and constant terms of the grant contracts, bidding notice and in the applicable legislation.
To be performing maritime drillings.
The Concessionaires breaching legal and contractual provisions related to the exercise of the activities shall be subject to the following administrative sanctions without prejudice to the applicable civil and penal sanctions: a) warning; b) fines; c) temporary, partial or total suspension of activities exercise; d) temporary suspension of the right to participate in future biddings to obtain new concessions and contract with ANP; e) interdiction; f) seizure; and g) termination of concession contract. Law # 9.478/1997, art.6. It is ANPs responsibility to provide name, chronological numbering and well enrollment after receiving from the operator or data acquisition company, the Well Drilling commencement Notice which is to be forwarded to the Agency up to 06 (sic) hours after the beginning of well drilling (art.7).
ANP # 75 /2000
Approves the Regulation that regards the procedure to Wells Codification, related to the exploration or production of petroleum and/or gas. Approves the Regulation regarding the procedures to the Wells Reclassification, related to the exploration or production of petroleum and/or gas.
Communicate the beginning of the marine drilling activities to ANP.
ANP # 76 /2000
Communicate the beginning of the marine drilling activities to ANP.
Law # 9.478/1997, art. 6
Law/ Regulation
Description
Topic covered
Main Requirements

Law # 9.847/ 1999 The removal of a facility connected to the oil and natural gas exploration activity, in the event of termination or not of the concession contract shall occur exclusively through the concessionaire, including the removal of goods which are not the object of reversion or disposal as well as the environmental recovery of the occupied area. If the removal is not recommended due to safety reasons or environmental protection as determined by the competent authorities, the facilities shall be free from products which may cause pollution. The delivery of the Return Notice or Return Report does not imply in the acknowledgement of any type of settlement from ANP.
ANP # 114 /2000
Approves the Technical Regulation that defines the procedures to be adopted in the devolution of granted areas in the exploration phase.
Exploration and Production of oil and natural gas.
Present Devolution Notification and Devolution Report to ANP
The offshore facilities shall always be removed from the concession area, except if otherwise specified in the subsequent items: - The location of each of the facilities or parts of facilities which are eventually left in the area, due to unsuitable removal, shall be informed to the maritime authority. - Facilities at water depths of more than 80 meters should be cut at 20 meters below sea ground in areas subject to erosive processes. Otherwise the facilities shall be cut at sea ground. - Facilities or part of facilities at water depths of more than 80 meters whose removal are technically unsuitable from the safety or environmental impact point of view can be left at the site, however they should be cut enabling 80 meters of free water depth. - After the removal of all facilities or part of facilities, sea ground should be clean from any and all scrap at water depth equal or below 80 meters.
ANP # 25/2002
Approves the Regulation related to abandonment of wells installed to petroleum and/or gas exploration and production.
During the production phase, ANP authorization must be required to abandon the well. During the Law # 9.478/1997, art. 8, inc. IX exploratory phase, a notification from ANP #114 /2001 ANP must be required to abandon the well. The project of well inactivation Characteristics of the cements used to make tampons, as well as the must be presented to IBAMA, in procedures to mixture the cement cream must obey API SPEC 10 A, API conformity with the Reference Term RP 10 B, NBR 9831, NBR 5732 or NBR 11578 ( art.7). published by the environmental institution ELNP/IBAMA.
Law/ Regulation
Description
Establishes the procedure to accidents communication to be adopted by the concessionaries and companies authorized by ANP to perform exploration, production, refine, processing, storage, transport and distribution activities of petroleum and its derived and natural gas as well.
Topic covered
Main Requirements

Law # 9.966, art. 15,16 and 22
ANP # 3 /2003
Presentation of the Individual Emergency Plan to the environmental licensing and presentation of the Environment and Health and Safety Management Plan to ANP.
Law # 9.478/ 1997, art. 8, IX . Decree # 4.136/2002, Decree # 2.953/1999 Law # 9.847/1999
Development and Production

Art. 2, I and IV. Approves the Technical Regulation of Natural Gas and Petroleum Measurement, which establishes the conditions and minimum requirements to the systems of natural gas and petroleum measurement, providing accurate and complete results. Decree # 2.705 / 1998, art. 3, IV, art. 4 and art. 5. Production of oil and natural gas To be operating a field of production in the country. Measurement systems where fiscal volumetric measurements of oil and natural gas produced in the fields will be carried out. Measurement systems where volumetric measurements of water will be carried out for the operational control of volumes produced, captured, injected and discarded. ANP Technical Regulation # 001/2000 (in appendix). In the beginning of the concession production stage the oil and gas reserves shall only be officially acknowledged by ANP after the approval of the Development Plan of that field (art. 4). ANP # 9/ 2000 Defines the terms related to natural gas and petroleum resources, establishes criteria to appropriation of resources and traces guidelines to estimate them. Production of oil and natural gas Presentation and approval of Discovery Evaluation Plan by ANP. In the event of a reassessment of oil and gas reserves, the new values will be reported in the Reserves Annual Bulleting pertinent to the year (until 15 January), followed by duly instructed justification with the pertinent data and information. If the variation between the foreseen and reassessed reserves is equal or higher than 10% (ten per cent), the Development Plan and the Annual Production Program of the field in question will be revised by the Concessionaire (art. 5).
ANP / INMETRO # 1 / 2000
Law/ Regulation
Description
Topic covered
Main Requirements

Law # 9.478/ 1997, art. 44, paragraph IV Applies to the initial development of fields not yet explored, productive fields which require complementary plans or alteration for improvement or resumption of production. The Development Plan which includes Pilot Projects of Advanced Production should discriminate separately the physical data and financial data related to these stages.
ACTIVITY
ANP # 90 /2000
Approves the Technical Regulation of the Development Plan that defines the contents and establishes the procedures related to the presentation template of the Natural Gas and Petroleum Resources Development Plan.
Production of oil and natural gas
Presentation and approval of Discovery Evaluation Plan by ANP.
If the field to be developed shares production facilities with other fields, the description of the development activities of this field should detail the components and equipment shared. The information on investments related to these facilities should include proportions to be allocated to each field. If there is a forecast to use new technologies developed by the Concessionaire or the application of unusual technologies related to oil and gas engineering, these technologies shall be described in the pertinent item of the Development Plan. Law # 9.478, art.43, inc VII.
PETROLEUM
ANP # 100/2000
Approves the Technical Regulation of the Production Annual Program to Natural Gas and Petroleum resources ( in appendix), which comprises issues regarding the inspection and escort of the production activities.
The Annual Production Program of an oil or gas field, referred to in the Concession Contract applies to the development and production stages, the Production Stage and the wells submitted to long term tests during the Presentation and approval of Exploration Stage, duly approved by ANP. Development Plan and keep operating in a production field. The Annual Production Program should include apart from the oil, gas and water production and transportation forecasts, the discrimination of burning and natural gas loss forecast, the injection of special fluids in the reservoirs, so as to improve the recovery and production and discarding of solid residues derived from the production process.
Law/ Regulation
Description
Topic covered
Main Requirements

Law # 9.478 /1997, Section V, art. 43, paragraph III.
ANP # 123 /2000
Establishes the Technical Regulation of the Budget and Work Annual Program to Natural Gas and Petroleum Resources, which arranges issues regarding the inspection and escort of the production activities, defining the content and establishing procedures related to the template of its presentation.
Law # 9.847/1999. Presentation and approval of Technical Regulation is applied to Development and Production Stages of Discovery Evaluation Plan by ANP, in the Production Stage and to wells submitted to long tests during the case of a Long Duration Test and Exploration Stage, duly approved by ANP. presentation of a Development Plan in case of development of the In the Annual Labor Program and Budget the following should be production. included: activities schedule, budget; well drilling and complementary information. For the first year, the Concessionaire should inform the investments on assets and services to be performed every quarter and all year long, and for the subsequent four years the total investments for each year. Law # 9.478/1999, Section VI, art. 47, 3. Decree # 2.705/1998, Cap.II, art. 3, inc. XI. Decree # 2.953/ 1999 ANP 90/2000 and ANP 100/2000 The standard measurement condition is established on art. 3, item I, of Decree No. 2.705 /1998, where the absolute pressure is 0,101325MPa and temperature 20C. Burnings and Loss of Oil and Natural Gas To be operating a field of production The associated gas volume, effectively burnt in each field, each month, in the country. cannot be higher than 15% in relation to the burning level foreseen for that month in the Annual Production Program under way. Except when this variation results from reasons of evident operational need, according to a justification to be presented to ANP, in the Monthly Production Bulletin. The associated gas volume, effectively burnt in each field, each year, cannot be higher than 10% in relation to the foreseen burning for that year in the Annual Production Program under way, except when this variation results from evident operational need, according to justification to be presented to ANP, until 31 January of the following year.
PETROLEUM
ACTIVITY
ANP # 249/2000
Approves the Technical Regulation of Burnings and Loss of Oil and Natural Gas, referring to issues related to burning in flares and losses of natural gas with maximum limits and authorized losses, not subject to the payment of royalties.
Law/ Regulation
Description
Topic covered
Main Requirements

Law # 9.478, art. 44, inc. III. The Oil and/or Natural Gas Discovery assessment Plan shall contain at least, the following topics: Executive Summary, Description of the Discovery, Geology and Reservoirs, Assessment Program, Activities Schedule, Investments Forecast and Safety and Environment. A summary shall be presented with the relevant aspects from the operational safety and environmental preservation point of view such as: a) the treatment and destination of fluids using in the drilling of wells and to operate equipment and also those fluids which are produced during the Assessment;
ANP # 259 /2000
Approves the Technical Regulation of the Evaluation Plan of Petroleum and/or Natural Gas Discovery.
b) aspects associated to assessment activities which are potentially polluting or which may represent risk to life, operational safety or to the Perform activity of exploratory drilling environment. with discovery and development c) presents mitigating actions to be taken in the case of accidents; possibility. Along with the Oil and/or natural Gas Discovery Assessment Plan, the Concessionaire shall deliver to ANP, in magnetic means, the Seismic and Geological Interpretation Project enabling the consideration of the proposed Assessment Plan. After concluding the Discovery Assessment, pursuant to the terms of the Plan submitted to ANP, the concessionaire shall forward the Final Oil and/or Natural Gas Discovery Assessment Report. If the Marketability Statement occurs after the conclusion of the assessment, the map with the limits of the area to be declared as commercial, i.e., the Development Area shall be presented, defining the function of the limits of the mines effectively assessed according to criteria defined in this regulation.
Law/ Regulation
Description
Topic covered
Main Requirements

Law # 9.478/1997, art. 27. Marginal oil fields: are those which predominantly produce oil, whose oil production at the time when the assignment term is executed does not surpass 500 barrels a day and whose last foreseen production forecast approved by ANP does not surpass this limit.
ANP # 279 /2003
Approves the procedure to the total cease of rights inherent to grant contracts of marginal resources of petroleum or natural gas ( in appendix).
Participate in the marginal fields bidding.
ACTIVITY
Margin natural gas fields: are those fields predominantly producing nonassociated natural gas, whose natural gas production at the time of the execution of the assignment term does not surpass 70,000 cubic meters daily of non-associated gas and whose last production forecast approved by ANP does not surpass this limit. If there is no infra-structure close to (up to 10 km away) for the outflow of produced gas, the limit for the definition of the marginal natural gas field will go from 70.000 to 150.000 cubic meters daily of non-associated gas.
Control and Inspection

Refers to the inspection of activities related to the oil industry and the national supply of fuels as well as the adequate operation of the National Fuel Stocks System and the compliance with the Annual Strategic Fuel Stocks Plan. Refers to the administrative procedures for the application of penalties due to breaches committed in activities related to the oil industry and the national supply of fuels and other measures. Establishes minimum requirements and terms of reference to be followed for environmental audits of oil and gas industry. Approves the Technical Regulation of the Production Annual Program to Natural Gas and Petroleum resources, which comprises issues regarding the inspection and escort of the production activities. Law # 9.478/1997 Act in conformity with the regulations established by the Brazilian norms. The control and inspection of activities related to the oil industry will be carried out by ANP. ANP inspection will include also the construction and operation of facilities and equipment used in the exercise of any activity connected to the oil industry and the national supply of fuels. ANPs inspection will be exercised directly by it or through offices of the Public Administration, the Federal, State or Municipal offices. Control and Inspection. Financial Demonstrative must be presented in accordance with the technician regulation. ANP # 180 de /2003 Technical Regulation (attached) to be used in financial statements. Law # 9.478, art.43, inc VII. Control and I inspection Attend the requirements established in the technical regulation. Law # 9.847/1999 Decree # 2.953/1999. Technical Regulation of the Production Annual Program to Natural Gas and Petroleum ( in appendix).
PETROLEUM
Law # 9.847/1999
Control and Inspection.
Decree # 2.953/ 1999
Control and Inspection.
Act in conformity with the regulations established by the Brazilian norms.
Conama Resol. 306/2002
ANP # 100 /2000
Law/ Regulation
ANP # 170 /2002 and ANP # 39 /2004
Description
Regulates the construction, expansion and the operation of installations a de transport of bulk oil, its by-products, natural gas, through water ways, comprising the long way navigations, cabotage, maritime support and port and inland support.
Topic covered
Main Requirements

Law # 9478/199/, art. 56
Unit of Natural Gas and Petroleum Drilling and Transportation Unit
A formal clarification is suggested to be solicited to ANP, regarding the applicability of this norm to the construction of marine unities of petroleum and gas production and storage.
Regulation which govern the water transport activities: Law # 9.432/ 1997, Law # 9.537/1997 ANP 39 of 11/24/2004 alters the amendment of ANP Administrative Rule # 170, of 25 September 2002; Alters art. 1, item I and V of art. 3, the title of Annex I of ANP Administrative Rule # 170, of 25 September 2002; The other provisions of ANP Administrative Rule # 170, of 25 September 2002 remain ratified.
Government take
Implements, for the States, Federal District and Municipalities a financial compensation for the result of oil or natural gas exploration of water resources for the generation of electric energy, mineral resources in their respective territories, continental shelf, territorial sea or exclusive economic zone and other measures. Must be paid in case of production field development. ANP must define the influence area and the percentage to be shared among the Cities, the State and Federal Governament. A Demonstrative Report of Expenses must be presented to ANP, presenting the value. Law # 9478/1997, art.45 Decree # 2705/1998 Law # 10.261/2001 Decree #3.739/2001 The use of water resources for the generation of electric energy and mineral resources, shall lead to the financial compensation to the States, Federal District and Municipalities to be calculated, distributed and applied pursuant to this Law. Law # 9478/1997, Art. 45 51 Government Participations are payments to be carried out by the concessionaires of exploration and production activities related to oil and natural gas pursuant to the terms of arts. 45 to 51 of Law # 9.478/ 1997 and this Decree.
Law # 7.990 /1989
taxes and tributes
Decree # 2705 /1998
Defines the criteria for calculation and collection of governmental participations referred to in Law n 9478 of 06 August 1997 applicable to exploration, development and production activities connected to oil and natural gas, and other measures.
Must be paid in case of production field development. ANP must define percentage to be paid. taxes and tributes
The concession contract shall refer to the following governmental A Demonstrative Report of Expenses participations foreseen in the bidding notice: must be presented to ANP, presenting I execution bonus; the value. II - royalties; III special participation; IV payment for the occupation and retention of the area. These governmental participations shall be compulsory.
Law/ Regulation
Description
Establishes the criteria to establish a minimum oil price monthly produced in each field to be adopted for calculation of government participations.
Topic covered
Main Requirements
Must be paid in case of production field development. A Demonstrative Report of Expenses must be presented to ANP, presenting the value.
ANP # 206/2000
taxes and tributes
Law # 9.478/1997, Cap. V, Sec.VI. Decree # 2.705, art. 7, 11
ANP # 29 /2001
ACTIVITY
Establishes criteria to be adopted for the distribution of the 7.5% (seven and a half per cent) over the value of royalties exceeding 5% (five per cent) of the oil or natural gas production in each field, to be carried out to the Municipalities affected by the oil and gas embarking and disembarking operations.
taxes and tributes
Must be paid in case of production field development. A Demonstrative Report of Expenses must be presented to ANP, presenting the value.
Law # 9.478/1997, art. 47, inc I, c, I, d, inc. II The distribution to each Municipality where the oil or gas embarking or disembarking facility, along with the Municipalities which belong to the facilitys area of influence, shall be carried out as follows: - 40% to the Municipality where the oil or gas embarking or disembarking facility is located - 60% to the Municipalities which belong to the facilitys area of influence.
PETROLEUM
ANP # 58/2001
Approves the Technical Regulation to be used in the preparation of the Special Participation Verification Statement.
taxes and tributes
The value must be paid and later verified by ANP in case of production field development.
Decree #2705/1998, art. 25. Special Participations
Investment in research and development

Among the taxes applicable in cases of production field development, a percentage is headed to research and development area. research and development A Demonstrative Report of Expenses must be presented to ANP, presenting the value The investment must be presented in the Demonstrative Report of Expenses to be presented to ANP. ANP #05/2005 ANP#06/2005
Decree # 2.851/1998
Arranges about programs to support the scientific and technological research that are applicable to petroleum industry, and provides other supports.
Law # 9.478/1997, art. 49 " d ", I, e " f ", lI, and 1 and 2.
10
Law/ Regulation
Description
Topic covered
Main Requirements
Among the taxes applicable in cases of production field development, a percentage is headed to research and development area.
Technical Note CTC # 01/2005
Final Considerations on the regulation of the Investment in Research and Development Clause contained in the Concession Contracts.
research and development
Oslo Manual Frascati Manual ANP #05/2005 ANP#06/2005
A Demonstrative Report of Expenses must be presented to ANP, presenting the value. The investment must be presented in the Demonstrative Report of Expenses to be presented to ANP.
ANP # 33 /2005
Approves the Technical Regulation which defines the norms related to investments in Brazil in research and development and the preparation of the statement report referred to in the Clause on Investment in Research and Development of Concession Contracts for the Exploration, Development and Production of Oil and/or Natural Gas. Technical Regulation for Investments in Research and Development and the Preparation of the Realized Expenses Statement Report. Technical Regulation for the Accreditation of Research and Development Institutions.
The investment must be presented in the Demonstrative Report of Expenses to be presented to ANP
Board of Directors Resolution # 372, of 18 November 2005 ANP # 5/2005 ANP # 6/2005 Oslo Manual Frascati Manual Refers to the 1% of special participations in Oil and/or Natural Gas Exploration, Development and Production Concession contracts effective on the date of the publication of Resolution. ANP #33/05 CTC Technical Note #1/2005 ANP #05/2005 ANP#06/2005
ANP # 05 NOVEMBRO/ 2005
ANP # 06 NOVEMBRO/ 2005
Approved for the ANP Resolution # 34 de 11/24/2005 ANP #05/2005 ANP#06/2005
11
Ministry of Mines and Energy`s Organogram
Environmental Ministry`s Organogram
IBAMA`s Organogram Environmental Licensing
DILIQ CGLIC
COLIC COAIR
CGQUA
COGEQ COASQ
ELMIAST
ELPN
ELSTEZC
ELEND

Brazilian Regulations for Petroleum Industry

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Brazilian Regulations for Petroleum Industry

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Brazilian Regulation related to the Petroleum Industry

ANP Oil and Gas Activity IBAMA Environmental Federal Constitution

Oil Industry Best Practise INMETRO / NBR ABNT

ANP - National Petroleum Agency.

People who work embarked.

Name Bianca Maria Abreu Mazurec

Profession Lawyer and Sociologist

Article and related Laws

NATIONAL ENVIRONMENTAL POLICY / CONSERVATION UNITS

Article: Art. 225, Paragraph 3.

It refers to the protection of fauna.

Protection of the environmental resources

Law # 6.938/1967 And Law # 9.605/1998

Establishes the National Plan of Coastal Management. Regulated by Decree # 5.300/2004.

Protection of the environmental resources

The National Plan of Coastal Management. Law # 6.938/1967 Law # 9.605/1998

Article and related Laws

FC art. 225, law # 6.938/1981 and Conama Resolution #23/1994.

Protection of the environmental resources

Art. 36 and paragraphs Conama Resolutions #13/1990 and #02/1996

Protection of the environmental resources

Attend the norms of environmental guidelines of the institution.

Protection of the environmental resources

Environmental Licensing ENVIRONMENTAL LICENSING

Law # 6.938/1981, and IBAMA Ordinance # 166-N/1998 which institutes ELPN

Article and related Laws

Conama Resolutions # 23/ 1994, # 237/1997

Conama Resolution # 6/1986

About the approval of templates to requirements of concession licenses.

Conama Resolution # 281/2001

Conama Resolution # 09/1987

About the realization of Public Hearings.

Conama Resolution # 237/1997

Conama Resolution # 23/ 1994

Conama Resolution # 237/1997

Conama Resolution # 237/1997 Conama Resolution # 281/2001

Regulates the National Environmental Licensing System.

Requirements and procedures that must be followed in the environmental licensing

Conama Resolutions # 01/1986, # 6/1986, # 09/1987, # 23/ 1994, # 281/2001, # 350/2004

Conama Resolution # 6/1986

Conama Resolution #350/2004

Establishes rules for the environmental licensing process of seismic activities.

Conama Resolution # 01/1986, # 23/1994 and # 237/1997.

Conama Resolution # 306/2002

Inspection and Environmental Audition

Law # 9.966/ 2000, and Decree 4.136/2002

Main Requirements Pollution Control

Article and related Laws

POLLUTION AND ENVIRONMENTAL RISK MANAGEMENT

Law # 9.966/ 2000

Oil Pollution Control in Waters of National Jurisdiction.

Law # 9.966/ 2000

Law # 9.966/ 2000

Law # 9.966/ 2000

Law # 9.966/ 2000, Conama Resolution # 293/2001

Article and related Laws

Establishes the air quality standards.

Conama Resolution # 269/ 2000

Law # 9.966/ 2000 and Decree # 4.136/2002

Conama Resolution # 293/2001 Conama Resolution # 314/2002

Individual Emergency Plan

Law # 9.966/ 2000, Decree # 4.136/2002, Decree # 4.871/2003