822.6363/27

The Minister in Ecuador (Hartman) to the Acting Secretary of State

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.]

Chas. S. Hartman
[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.

José Luis Tamayo
  1. Not printed.