Energy Law in Brazil: Oil, Gas and Biofuels PDF
Preview Energy Law in Brazil: Oil, Gas and Biofuels
Yanko Marcius de Alencar Xavier Editor Energy Law in Brazil Oil, Gas and Biofuels Energy Law in Brazil . Yanko Marcius de Alencar Xavier Editor Energy Law in Brazil Oil, Gas and Biofuels Editor YankoMarciusdeAlencarXavier DepartmentforPublicLaw FederalUniversityofRioGrandedoNorte Natal,RioGrandedoNorte Brazil ISBN978-3-319-14267-8 ISBN978-3-319-14268-5 (eBook) DOI10.1007/978-3-319-14268-5 LibraryofCongressControlNumber:2015934455 SpringerChamHeidelbergNewYorkDordrechtLondon ©SpringerInternationalPublishingSwitzerland2015 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilarmethodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthis book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade. Printedonacid-freepaper Springer International Publishing AG Switzerland is part of Springer Science+Business Media (www.springer.com) Presentation Brazilis,withoutadoubt,anenergygiant.Byvirtueofitsnatural,environmental andclimaticconditions,thecountryhasdifferentenergymatrices,bothrenewable and nonrenewable. These include hydro energy, thermal energy, wind energy, fossil-fuel-derived energy and bioenergy. The energy sources available and explored in Brazil are diverse. This exploration cannot occur outside the law. JudicialguidelinesaretheinstrumentusedbytheStatetoallowrationalexploration ofdifferentenergysourcesinordertocatertopublicandprivateinterestslinkedto suchexploration. Itisnowonderthatfossilfuels,particularlyoil,naturalgasandtheirderivatives, are widely studied energy sources regulated by judicial guidelines. Whether because of their economic and political importance or their nonrenewable nature, Brazilian law seeks to regulate the exploration and production of these energy sourcesasawayofsafeguardingthecollectiveinterestandmakingexplorationand productionasefficientaspossible.Atthesametime,theenvironmentalvariableis alsoaconstantconcernfortheBrazilianlegalorder,especiallyduetothepotential pollutingleveloffossilfuels. Ontheotherhand,eversincetheoilcrisesofthe1970s,theBrazilianStatehas been concerned with developing biofuels, a second important renewable energy matrix, through the “National Alcohol Program” (“PROALCOOL”), encouraging the production of biofuels, which are still widely consumed today in the form of alcohol.Theadventofthissecondenergysourcecatalyzedallthedevelopmentof thebiofuelindustryinthecontemporaryenergyscenario,withspecialemphasison biodiesel. Thisbringsustothepurposeofthisbook. Notwithstanding the title (Energy Law in Brazil), the work we present here is underpinned by the study of Brazilian judicial guidelines that regulate the oil, naturalgasandbiofuelenergysectors. Thisisnotarandomchoice.Thesethreeenergysectorscurrentlymostrepresent theeconomic,politicalandBrazilianjudicialareas.Intheeconomicarea,thisisdue totheirimportanceintheBrazilianeconomyandeconomicdevelopmentinBrazil v vi Presentation as a whole. In the political realm, this is owing to the role that the three energy matrices(in particular oil andnaturalgas) play inthe Brazilian and world geopo- litical context and, in the judicial field, because of the extensive legislation regu- latingthethreeenergysources. Giventhescopeoftheissueathand,EnergyLawinBrazilexhibitsamultidis- ciplinary and polyfaceted nature in terms of judicial analysis: interdisciplinary becausetheanalysisemployedwillbenotonlyjudicialbutwillalsousetechnical, economic and political concepts and polyfaceted because the work is subdivided intodifferentchapters,eachreflectingonaspecificbranchoflaw,suchasregula- tory law, environmental law, tax law, international law, among others. Thus, in additiontopresentingageneraloverviewofenergylawinBrazil,theworkseeksto deepenitsanalysisviadifferentjudicialdisciplinesappliedtotheenergysector. Withrespecttoitsstructure,theworkisdividedinto6partsand12chapters. The first chapter of Energy Law in Brazil gives an overview of the petroleum, natural gas and biofuel sectors. Chapter 1 introduces the main premises and characteristicsoftheaforementionedenergysectorsthroughahistoricalpanorama of the oil, natural gas and biofuel industries in Brazil. The authors also present statisticalandeconomicdataontheseenergysectors. Chapter2discussestheregulatoryaspectsoftheoil,gasandbiofuelindustries. Here the judicial approach proposed by the work is initiated. Divided into three sections,eachonecoveringaparticularenergysector(oil,naturalgasandbiofuels), thepurposeofthischapteristopresent,ingeneralterms,thehistoricalevolutionof regulation in the aforementioned energy sectors, from the colonial period (in the caseofoil)tothecontemporaryregulatorycontext. Chapter3deepens the analysis ofregulationinthe oilandgas sectors,with an emphasisonFederalLawNo.9.478,ofAugust6,1997,alsodenominatedthe“Oil Law.” This law is an important regulatory guideline in the oil and natural gas industries, particularly due to the fact that, since its inception, Brazil has relinquished its monopoly on oil and natural gas exploration and production, allowing private companies to operate in the Brazilian oil market. In addition to analysisofFederalLawNo.9.478/1997,Chap.3alsopresentsthecharacteristicsof so-calledconcessioncontracts,whichregulatethejudicialrelationshipofeconomic agents that develop the exploration and production of oil and gas, in addition to analyzing “government participation,” legal instruments that allow the Brazilian Statetoshareintherevenuesgeneratedbytheoilsector. Chapter4investigates thecurrentregulatorycontextoftheoilandgassectors, with an emphasis on the judicial discipline of the so-called presalt layer. The discoveryofthepresaltlayerin2006providedBrazilwithanewenergyparadigm, especiallygiventheamountofoilandgasdepositedintheoilbasinsofthepresalt layerandthechallengesrelatedtooilandnaturalgasexplorationandproductionin the region. Thus, by virtue of its importance, Brazil introduced a new judicial regime related to oil and natural gas exploration and production in the presalt layer, with new contractual arrangements and a new model of state participation that willbe adopted for economicagents seeking to develop their activitiesin the region. Presentation vii Chapter5,inturn,presentsapanoramaofnaturalgasregulationinBrazil,with specialemphasisonFederalLawNo.11.909,ofMarch4,2009,alsoknownas“The GasLaw.”Chapter5standsoutfromtheothersinthatitfocusesontheregulatory aspects of natural gas transport and distribution in Brazil, activities that obey specificrulesthatmustbestrictlyfollowedbygastransportersanddistributors. Similarly toChap. 5, Chap. 6 investigates the regulatory aspects of the biofuel industry in Brazil. The chapter initiates its analysis by discussing the general aspects of biofuel regulation in Brazil, followed by a deeper investigation of the twomainbiofuelsproducedinBrazil:biodieselandethanol. Chapter7studiesthecharacteristicsofenvironmentallawintheoil,naturalgas andbiofuelindustries.Thisissueisofsignificantimportancetotheoil,naturalgas andbiofuelindustries,particularlyduetothepotentialenvironmentalimpactofthe firsttwoenergysectors.Inthisrespect,Chap.7startsbypresentinganoverviewof environmental law in Brazil, with particular emphasis on Guidelines contained in the Federal Constitution of 1988, which regulates environmental protection. The chapter then addresses questions related to the environmental protection judicial regime in Brazil, such as the National Environmental Policy, the institute of environmental licensing and environmental crimes. The aspects of environmental lawappliedtotheoil,naturalgasandbiofuelindustriesarehighlightedinthetopics related to regulating seismic topographic procedures, air pollution and water dis- posalatoilplatforms,amongothers. Chapter8deepensthereflectionsinitiatedinChap.7,discussingissuesrelatedto international environmental law as it pertains to petroleum and the Brazilian context. Starting his analysis by applying the principles of international law in environmentalprotection,theauthorexaminesproblemsrelatedtooilspillsatsea andBrazil’spositiononsuchincidents. Chapter9studiesBraziliantaxlawasappliedtotheoil,naturalgasandbiofuel industries. Starting with a general analysis of the Brazilian tax system, the author presentsthemainpeculiaritiesanddifferenttypesoftaxesexistinginBrazil.Next, specific taxation aspects in the oil, natural gas and biofuel sectors are examined. Finally,anumberofcharacteristicsofspecialtaxregimesasappliedtotheoiland gassectorsarepresented. Chapters 10–12, the last three chapters of the book, discuss the peculiarities existingininternationallawappliedtotheoilandgassectors. Chapter 10 analyzes the problems involved in oil and gas exploration and production contracts and foreign companies that operate in Brazil. To that end, theauthorinvestigatesthepeculiaritiesinvolvingforeigncompaniesthatengagein oil and natural gas exploration and production activities and foreign investment protectionmechanismsinBrazil. Chapter 11, in turn, discusses international arbitration as applied to the oil industryandthepositionofBrazilianlawonthisissue.Specialemphasisisgiven toarbitrationappliedtosolveconflictsoriginatinginoilandnaturalgasexploration andproductioncontractsandhowthejudicialorderinBrazilbehaveswithrespect tothistopic. viii Presentation Finally, Chap. 12 investigates the important issue of energy law, that is, the instituteof“unitization,”widelydiscussedincasesoftransboundaryoilwells.The particularity of the chapter lies in the issues involving international unitization (whentransboundaryoilfieldsbelongtodifferentcountries)andhowBrazilianlaw regulatestheissue. ItisexpectedthatthetopicspresentedherewillserveasaguidetobothBrazilian andforeign scholarsandresearchersofenergylaw, helping themunderstandhow the Brazilian judicial order regulates its energy sector. At the same time, the investigations undertaken here are the most contemporary on the issue, giving readersafirstglimpseofstate-of-the-artBrazilianenergylaw. The publication ofthis book was madepossible by the supportof the National Oil,GasandBiofuelsIndustry(ANP),Petr(cid:1)oleosBrasileirosS/A(Petrobras)andthe BrazilianInstituteofOil,GasandBiofuels(IBP). Contents PartI Introduction:TheBrazilianScenariooftheOil,Gas andBiofuelIndustries 1 TheTechnologicalandEconomicFeaturesofBrazilianOil,Gas andBiofuelIndustries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 HirdanKatarinadeMedeirosCosta,EdmilsonMoutinhodosSantos, Joa˜oPauloLimaSantos,andRafaelPuglieri 2 TheEvolutionofBrazilianOil,GasandBiofuelIndustry Regulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Fabr´ıcioGermanoAlvesandYankoMarciusdeAlencarXavier PartII TheRegulationofOilandGasIndustryinBrazil 3 RegulationoftheOilIndustryAccordingtotheBrazilian OilLaw. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 SamuelMaxGabbayandYankoMarciusdeAlencarXavier 4 TheRegulationofOilandGasIndustryConcerningExploration andProductioninPresaltLayer. . . . . . . . . . . . . . . . . . . . . . . . . . . 87 YankoMarciusdeAlencarXavierandAndersonSouzadaSilvaLanzillo 5 RegulationoftheGasIndustry. . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 AndersonSouzadaSilvaLanzillo PartIII TheRegulationofBiofuelIndustryinBrazil 6 BiofuelRegulationinBrazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 YankoMarciusdeAlencarXavier,Patr´ıciaBorbaVilarGuimara˜es, AndersonSouzadaSilvaLanzillo,andSamuelMaxGabbay ix
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