SECTION I GENERAL PROVISIONS

Article 1. The provisions set forth in this law shall govern:

1. (a) Geothermal energy;

2. (b) The concessions and tenders for the exploration or exploitation of geothermal energy;

3. (c) Constitution of the necessary easements required for the exploration or exploitation of geothermal energy;

4. (d) Safety conditions to be maintained while carrying out geothermal activities;

5. (e) The relationships between holders of concessions, the Government, owners of surface lands, holders of mining properties and parties to oil operation contracts or companies authorized by law to prospect or develop hydrocarbons, holders of water exploitation rights, in all matters relating to the exploration or exploitation of geothermal energy, and

6. (f) Government responsibilities related to geothermal energy.

Article 2. The provisions set forth in this law shall not apply to thermal waters, whether mineral or not, used for sanitary, tourism or recreational purposes.

The exploitation and drawdown of thermal waters referred to in the above subparagraph shall be governed by the provisions set forth in Statutory Decree No 237, year 1931, or by the general or special regulations which, in each case, shall be applicable.

The scope of this law shall cover the continental, insular and Antarctic territory, including inland waters, territorial sea and exclusive economic zone.

Article 3. Geothermal energy shall mean the energy obtained from the natural heat of the earth, which may be drawn from steam, water, gases – except for hydrocarbons – or through fluids artificially injected for such purposes.