822.6363/27
The Minister in Ecuador (Hartman) to
the Acting Secretary of State
Quito, December 21,
1920.
[Received January 15, 1921.]
No. 626
Sir: I have the honor to confirm my telegram
No. 82 of December 17, 11 a.m.,40 wherein I gave present status of Ecuadorean oil
legislation and transmitted the body of the decree approved November 25,
1920.
I now enclose, for the information of the Department, triplicate copies
of Registro Oficial containing the said decree of
November 25, 1920, together with triplicate copies of the translation of
the decree.
I have [etc.]
[Page 214]
[Enclosure—Translation]
Legislative Decree of November 25, 1920,
Providing for a Petroleum Mining Law
The Congress of the Republic of
Ecuador Considering:
- 1st.
- That the Legislative Decree approved October 18, 1919, was of
a purely transitory character, adopted pending the passage of a
special Petroleum Law.
- 2nd.
- That in view of the singular importance of this law it should
receive careful study, which the present Congress, for lack of
time, is not prepared to give it; and
- 3rd.
- That in the said Legislative Decree, in the supposition that
the said special law would be enacted promptly, were included
provisions which if continued in force for a longer time might
affect rights already acquired, with injury to the national
interests and to the holders of these rights acquired in
conformity with the laws in force at the time of their
acquisition.
Decrees:
- Article 1. Article 3 of the
transitory Legislative Decree of October 18, 1919, will read:
“The rights of concessionaires who within the period of
five years from the date this law goes into effect,
shall not have commenced the scientific working of the
mines adjudicated, by means of the installation of
machinery suitable for this class of work, shall also,
ipso facto, cease.
“If one person alone or corporation shall have in
possession concessions exceeding 5,000 hectares, the
period of time will be understood as extended in the
proportion of five years for each 5,000 hectares in
excess.”
- Article 2. The following is
substituted for Art. 4 of the said Decree:
“Pending the enactment of the new law, the rights
previously acquired in petroleum mines may not, in any
manner, be sold or transferred among living persons,
without previous authorization of the Chief Executive,
who, in his discretion, may refuse to grant such
authorization.”
- Article 3. Petroleum mines which
have been definitely adjudicated through the extension of the
respective titles, continue subject to the provisions of the
Mineral Code as amended, including the amendments of the
transitory Legislative Decree of October 18, 1919.
- Article 4. The Executive Power will
name a commission of three persons, who will prepare the draft
of a special petroleum law which will be presented by the proper
Ministry at the first session of the next ordinary
Congress.
Approved Nov. 25, 1920.
