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Law No. 7.990 establishing for the States, Federal District and Municipalities, a financial compensation for the result of the exploitation of oil or natural gas, water resources for the purpose of generating electric energy, mineral resources in their respective territories.

Country/Territory
Brazil
Document type
Legislation
Date
1989 (2017)
Source
FAO, FAOLEX
Subject
Energy
Keyword
Oil Natural gas Liability/compensation Hydropower generation Energy conservation/energy production
Geographical area
Amazonia, Americas, Latin America and the Caribbean, North Atlantic, South America, South Atlantic
Entry into force notes
This Law enters into force on the date of its publication.
Abstract

This Law, consisting of 12 articles, establishes for the States, Federal District and Municipalities, a financial compensation for the result of the exploitation of oil or natural gas, water resources for the purpose of generating electric energy, mineral resources in their respective territories, continental shelf, territorial sea or exclusive economic zone, and other measures. (Article 21, XIX of the CF). It establishes the amount of the financial compensation which will correspond to a percentage factor of the energy value included in the invoice, excluding taxes and compulsory loans. The hydroelectric energy, for the private use of a producer, when used for external use of public service, shall also be recorded with the application of a factor of 6% (six percent) of the electric energy value corresponding to the billing calculated therein conditions and prices of the local public service concessionaire. It is the responsibility of the National Department of Water and Electric Energy (DNAEE) to fix, on a monthly basis, based on the current supply tariffs, an updated reference tariff for the purpose of applying financial compensation in a uniform and equalized manner over all hydroelectricity produced in the country.

Full text
Portuguese
Website
www.planalto.gov.br