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Home New Regulatory Model - Brazil Supreme Court of Brazil files action on the pre-salt royalties

Supreme Court of Brazil files action on the pre-salt royalties

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05 Feb 2010 - by PreSalt.com - Source: Agência Brasil

The minister of the Supreme Court (STF), Eros Grau, filed today (4) the injunction, of the Congressman Eduardo Cunha (PMDB-RJ) to the House of Representatives was barred from acting on the amendment that deals with royalties of the pre-salt (subsalt).

The minister said that "there is nothing to decide now," because he has not completed the legislative process and is in the House, including an appeal to reject the amendment, against the decision of its president, Michel Temer.

The amendment was tabled by Ibsen Pinheiro (PMDB-RS) and Humberto Souto (PPS-MG) and provides for the division of royalties and resources of the special participation by exploration of the areas already bid and exploration and production of pre-salt under the system of sharing, all states and municipalities, according to the criteria adopted in the distribution of Fund Participation of (FPE) and municipalities (FPM).

The amendment proposes the division of resources equally among the producing states and non-oil producers, which would cause a reduction in the transfer of resources to producing states such as Rio de Janeiro and Espirito Santo.

Eduardo Cunha wanted the Supreme Court to declare the absence of the amendment because among the lawmakers who signed the report is the deputy leader of the party representing 15 members, a number well below the 103 signatures required by the Rules of Procedure in cases of amendments that are channeled to projects under emergency

 

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