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Free transcript, for Legal purposes please refer to original Spanish version Approved Regulation of Hydrocarbons Exploration and

Exploitation Activities SUPRE E !E"REE #$ %&'('%%)(E "*#"*R!A#"E+ R, #- %..('%%/(*S("! 0E1ergency report of Hydrocarbon activities2 !,S, #$ %.3('%%4(E , Appendix 3, Art, &/ R, #- 54.('%%.(*S("!, Appendix 6 0Procedure for the sub1ission of infor1ation about ease1ents for the construction and operation of Pipeline 7ransportation of Hydrocarbons2 7HE PRES6!E#7 *F 7HE REPU8L6" 7HEREF*RE+ 7hat, the article && of the *rganic Hydrocarbon La9, La9 #$ '5''3, stipulates that the inistry of Energy and ines 9ill issue rules regarding the technical aspects of facilities and operations of exploration and exploitation of both surface and subsurface and security: 7hat, by Supre1e !ecree #$ %//(;&(E , 9as approved the Regulation of Hydrocarbon Exploration and Exploitation Activities: 7hat, ne9 assu1ptions and re<uire1ents 1a=e it necessary to update the rules about hydrocarbons exploration and exploitation to ensure the efficient exploitation of our hydrocarbon reserves, the integrity of the hu1an person and the preservation of the environ1ent in 9hich these activities ta=e place: Under the La9 #$ '5''3 and exercising the po9ers provided in sections .2 and ')2 of Article 33. of the Political "onstitution of Peru: !E"REES+ Article 3,( *f the approval of the Regulation of Hydrocarbon Exploration and Exploitation Activities 7o approve the Regulation of Hydrocarbons Exploration and Exploitation Activities, the sa1e containing seven 042 7itles, sixteen 0352 "hapters, three hundred thirteen 0&3&2 Articles, four 0)2 Supple1entary Provisions, four 0)2 7ransitory Provisions and one 032 Appendix, 9hich for1s an integral part of this Supre1e !ecree, Article ',( *f the Repeal of the Supre1e !ecree #$ %//(;&(E Repeal the Supre1e !ecree # $ %//(;&(E that approved the Regulation of Hydrocarbons Exploration and Exploitation Activities and provisions that are contrary to the provisions of this Supre1e !ecree, Article &,( *f the Endorse1ent 7his Supre1e !ecree is endorsed by the inister of Energy and ines,

6ssued at >overn1ent House in Li1a, on the eighteenth day, of the 1onth of August, of the year t9o thousand four, ALE?A#!R* 7*LE!* "onstitutional President of the Republic ?A6 E @U6?A#!RAA SAL B# inister of Energy and ines

RE>ULA76*# *F HC!R*"AR8*# EDPL*RA76*# A#! EDPL*67A7*6# A"76E676ES 767LE 6 >eneral Provisions 767LE 66 Safety, Health and Environ1ent "hapter 6 "hapter 66 "hapter 666 "hapter 6E 767LE 666 Exploration "hapter 6 "hapter 66 767LE 6E !rilling "hapter 6 6nstalation of the !rilling E<uip1ent "hapter 66 Fell !rilling "hapter 666 Safety Aspects for !rilling and Fell Service "hapter 6E Fell "o1pletion "hapter E Fell Abandon1ent 767LE E ProducciGn "hapter 6 "hapter 66 "hapter 666 "hapter 6E "hapter E >eneral Production Production E<uip1ent Production *perations Safety easures in Production Fells FiscaliHed Hydrocarbon easure1ent Exploratory Activities Explosives Handling >eneral Provisions Safety and Health Environ1ent Safety and Health "onditions in the "a1ps

767LE E6 6nfor1ation, infringe1ents and penalties 767LE E66 Use of Public and Private Property >oods "* PLE E#7ARC PR*E6S6*#S 7RA#S676*#AL PR*E6S6*#S Appendex A #ational 7echnical Rules 767LE 6 >E#ERAL PR*E6S6*#S Article 3,( Purpose 7his Regulation is issued under the provisions of Article && of the *rganic Hydrocarbon La9, La9 #$ '5''3, and ai1s to regulate the Hydrocarbons Exploration and Exploitation activities at the national level, in order to get the axi1u1 Efficiency Recovery of Hydrocarbon Reservoirs, 9ithin the conditions for safe operation and environ1ental protection, 7his Regulation applies to "ontractors, 9ho in turn, are responsible for co1pliance 9ith it by their Subcontractors, Article ',( !efinitions

As appropriate, the definitions in the >lossary of Acrony1s and Abbreviations of the Hydrocarbon Sub sector are applicable as are not provided for in this Regulation, 6n case of discrepancy bet9een the definitions contained in both rules prevail the Regulation, For the purposes of this Regulation and in addition to those contained in the >lossary of 7er1s of the Hydrocarbon Sub Sector, 9ill be considered the follo9ing definitions and acrony1s+ Fell Abandon1ent+ For=s that are 1ade to leave sealed and in safe conditions a Fell, "apacity+ easure1ent of the rest a1ount of Li<uid Hydrocarbons in calibrated tan=s and in standard conditions of pressure and te1perature, #atural >as Storage in Reservoirs+ 6nIection of gas in depleted reservoirs for storage purposes for later use, Ris= Analysis+ 7he study to assess the potential dangers and their possible effect on an existing plant or a proIect, in order to establish preventive and protective 1easures, 7hese studies should be conducted by <ualified professional associations of the o9n "ontractor or consulting fir1s or external consultants duly registered in *S6#ER>, 8entonite+ #atural clay, a co1ponent of drilling uds,

8ES+ 6n the Exploitation activity is the unit of electrical sub1ersible artificial pu1ping, Artificial pu1ping or Artificial Uplift+ 7echni<ues used for the Fells to continue producing financially 9hen their energy is not sufficient to produce in natural up9elling First Aid Jit+ Provision of tools and 1edicines necessary to 1eet the e1ergency health ris=s fro1 specific area or type of 9or= being perfor1ed and should be inspected periodically by the co1panyKs 1edical Staff, Fellhead+ Steel unit 9ith a set of valves and connections supporting the pipelines of a Fell fro1 subsurface, allo9s to control their pressure and put into production or inIection fro1 the surface 0"hrist1as 7ree2, "asing+ "asing, Standard "onditions+ 7e1perature of fifteen degrees "elsius and five hundredths degrees "elsius (3/,/ - " 0sixty degrees Fahrenheit (5% - F2 and pressure of 3),5;5 psi, "oning+ 6rruption of 9ater andLor gas into the productive for1ation Hones of the Fell due to decreased of its pressure flo9ing, creating a flo9 cone(shaped around the oil Fell, !ata+ >eneral 6nfor1ation about 9or=s carried out, occurrences, statistics and sa1ples obtained during Hydrocarbons Exploration and Exploitation activities, !egasser+ E<uip1ent used to extract gas fro1 the ud in the process of nor1aliHing its 9eight to allo9 continued use of this fluid during the drilling of a Fell, !esander+ E<uip1ent used to extract sand fro1 the drilling !esilter+ E<uip1ent used to re1ove fine particles to drilling ud, ud,

!6"AP6+ >eneral !irectorate of "aptaincy and "oast >uard of the #avy of Peru, 61ple1enting Agency of the inistry of !efence,

!>AAE+ >eneral !irectorate of Environ1ental Energy Affairs, !>H+ >eneral !irectorate of Hydrocarbons, !>7A+ Air 7ransport >eneral !irectorate, 7ripper+ Person in charge of handling and detonation of explosives, Engravable+ 7echni<ue of placing a sand filter bet9een the "asing and 7ubing to avoid operational proble1s in the production of a Fell, !rilling E<uip1ent+ Set of operational units 01otors, 9inch, 9inches, pu1ps, generators, drill pipe, treat1ent plants, tan=s, etc,2, Fith cross(functional tea1s related to the purpose of carrying out drilling of Fells, Sti1ulation+ 7reat1ent of the productive for1ation of a Fell in order to i1prove productivity, "ho=e+ A device fitted to the 9ellhead of a Fell to reduce the dia1eter of flo9 area of fluid fro1 an oil or gas Fell, in order to regulate the output of the sa1e, Evaluation+ For=s carried out in the Fell to deter1ine its capacity to produce Hydrocarbons, Hydraulic Fracturing+ A techni<ue due to generate hydraulically a fracture in the for1ation in order to i1prove its Per1eability in the area adIacent to the Fell, Font+ "urrent ground 9ater co1ing through a natural opening 9here the 9ater line intersects the surface, >as Lift+ Artificial production syste1 9hose energy is supplied by the #atural >as high pressure, 9hich relieves the hydrostatic colu1n of the Fell, allo9ing fluids to rise to the surface, >*R+ >as(oil ratio in 1&L1& or cubic feet per barrel, 1easured at Standard "onditions, 6ncident+ *ccurrence, uncontrolled escape or discharge of HaHardous aterial that does not cause fire, explosion, death or personal inIury, but that causes or could have caused da1age to property or the environ1ent, >eophysical !ata+ !ata originated fro1 a geophysical activity, Processed >eophysical !ata+ !ata fro1 the field 9hich has been applied to a se<uence of processing seis1ic records in paper or digital for1at, 6nIection+ For= carried out for inIecting 9ater, #atural >as, nitrogen or poly1ers to for1ations 9ith Reserves re1aining Hydrocarbons for purposes of pressure 1aintenance, secondary recovery and in the case of #atural >as for storage purposes, 6PE#+ Peruvian 6nstitute of #uclear Energy, La9+ *rganic Hydrocarbon La9, La9 #$ '5''3, Li<uids of #atural >as+ li<uefiable Hydrocarbons fro1 producing for1ations of #atural >as or separation plants of li<uids andLor processing of #atural >as, Liner 0Laina2+ "asing of the Fell that does not reach the surface, Usually covers only the deep and productivity part of the Fell and hangs fro1 the last tube of "asing,

ud+ "irculating fluid during drilling *perations in the Fell, 9ith special features to =eep it clean, stable and controlled, and to recover lithological sa1ples 9ith advancing drilling, ast+ Eertical steel structure that gives the height to the drilling e<uip1ent and Fell service, Jill a Fell+ 7echni<ue by 9hich do1inates and prevents the up9elling of Fell fluids, caused by the high pressure that are found, Auto1atic easure1ent+ !eter1ination of the a1ount of effluent Hydrocarbons in pipe 9ith 1eters of continue flo9, suitably calibrated, ER 0 axi1u1 Efficient Recovery2+ Production 9hich allo9s reaching the highest technical and econo1ic recovery fro1 a reservoir, in accordance 9ith internationally accepted practices for the *il industry, Fell Seis1ic ethod of 7rip+ Seis1ic techni<ue that uses a s1all explosion in shallo9 Fells to produce shoc= 9aves that are recorded in an exploratory or !evelop1ent Fell, 6#E + inistry of Energy and ines

Sa1ple+ A representative volu1e of FiscaliHed Hydrocarbons, *perations+ All Exploration andLor Exploitation activity, if any, as 9ell as those related to 7ransportation and Storage Syste1 and the ain Pipeline and other activities related to the "ontract in relation 9ith the operation and execution thereof, Parties+ PERUPE7R* and the "ontractor, Personal+ 7he natural person lin=ed to the "ontractor through a e1ploy1ent or service contract, Fell Logging+ "ontrolled techni<ue fro1 the surface, that is used for 1easuring the petrophysical characteristics of the for1ations and fluids, crossed by the Fell, Per1eability+ Ability of a roc= or for1ation to let pass a fluid, "ontingency Plan+ Plan developed to address spills of hydrocarbons and other e1ergencies such as fires and natural disasters, Porosity+ 7he space bet9een the grains that constitute a sedi1entary roc=, 6n case of naturally fractured for1ation, should also consider such fractures, Fell+ "avity in the earthKs crust as a result of drilling carried out to discover or produce Hydrocarbons, to inIect 9ater or gas or other obIectives, Active Fell+ Fell 9hich is operated by the "ontractor either continuously or sporadically in order to recover Hydrocarbon reserves, Artesian Fell+ Fell in 9hich 9ater or oil flo9s to the surface 9ithout the use of bo1bs, because the Reservoir pressure is greater than the hydrostatic pressure, !evelop1ent Fell+ 7he one drilled to produce Hydrocarbons in the Exploitation Phase, Fildcat Fell+ *ne that is drilled 9ith the purpose of discovering hydrocarbons reserves or to deter1ine the stratigraphy of an area in Exploration,

"onfir1atory Fell+ *ne that is drilled to confir1 the discovered Reserves or to delineate the extent of a Field, Flo9ing Fell+ 7he one in 9hich the fluids co1e fro1 the crossed Reservoir or Reservoirs flo9 to the surface 9ithout using artificial 1eans, Annual Progra1 of Safety Activities 0PAAS2+ 6t is an annual docu1ent containing the obIectives and activities to develop, leading to the achieve1ent and 1aintenance of security conditions, For1ation 7est+ Evaluation techni<ue that is useful to deter1ine the characteristics and productive capacity of the for1ation and fluids, Pulling+ Fell Service For=, 9hich is perfor1ed to repair the subsoil e<uip1ent of Fells 9ith proble1s, Shot Point+ Location 9here seis1ic 9aves are produced, during the execution of seis1ic 9or=, by blasting or other 1ethods, "ontrol Point+ 7his is the place agreed by the Parties to 1easure of the Hydrocarbons fro1 the "ontract Area, 9here and for 9hich effect the "ontractor 9ill build, operate and dispose of appropriate e<uip1ent and facilities for the Production FiscaliHation, Punching+ 7echnic that allo9s controlled shoots fro1 the surface 9ith the purpose of producing 0holes in the Fell to the for1ation to establish the respective co11unication, For=over+ For= carried out in the Fell, in order to i1prove productivity by 1odifying the characteristics of their productive areas, 61proved Recovery+ 7echni<ues applied to Reservoirs to increase the final recovery fro1 their Hydrocarbons, Secondary Recovery+ 61proved Recovery techni<ue that involves the inIection of 9ater andLor gas fro1 a Reservoir or the application of ne9 technologies in order to increase the final recovery of Hydrocarbons, Regla1ento 6nterno de Seguridad 6ntegra 6nternal Regulations of 6ntegral Safety+ !ocu1ent developed by the contractor itself, 9hich contains the rules and regulations of each specific activity of Hydrocarbons designed to regulate the course of 9or=, for it ta=es place in opti1al safety conditions, *verhaul+ For= carried out in Fells te1porarily or per1anently abandoned, in order to put the1 bac= in activity, Re(inIection+ 7he action of Mre(inIectM gas, 9ater or other fluids to a reservoir 9ith existence re1nants of Hydrocarbons to i1prove its final recovery or 1aintain pressure, Strings+ >roup of geophones and L or hydrophones used during a seis1ic operation, Seal Roc=+ 61per1eable Roc= layer that prevents 1igration of Hydrocarbons or fluids in general, Line+ Set of pipes that exert a sa1e function, Safety+ All security disciplines and the set of technical standards and national andLor international legislation, designed to prevent, eli1inate andLor control possible causes of Accidents,

da1age to the environ1ent, industrial ris= andLor occupational diseases to is exposed to Personnel and facilities in Hydrocarbon Activities, Separator+ E<uip1ent 9here #atural >as andLor 9ater fro1 Li<uid Hydrocarbons produced is separated, Fells Service+ For=s carried out in the Fell to restore its nor1al production regi1e, 9ithout changing the source of production, S9abbing+ S9ab action 9ith cable to agitate andLor re1ove fluids fro1 a Fell, Subcontractor+ A natural or legal person contracted by the "ontractor to carry out 9or= relating to the activities of the "ontract, SSU+ Safety Sealing Unit, Safety sealing device to prevent spills, onitoring+ 7he actions carried out by to PERUPE7R* to verify co1pliance of "ontractorKs obligations regarding the execution of the "ontract, Pac=ers 0Pac=ers2+ Pac=ers 0ce1ent or 1echanical, per1anent, drilled or recoverable2 used to isolate a section of the Fell, 7ubing+ Pipeline by 9hich the production flo9s fro1 the Fell to the surface, "asing 0"asing2+ Pipeline designed to constitute on FellNs 9alls, 9hich 1ay be 9holly or partially ce1ented, Production "asing 0"asing of ProducciGn2+ 6nterior or operative "asing that has the Fell production syste1, Surface "asing 0"asing of Surface2+ "asing conected to the "ap and ce1ented that supports 9eight of Fell e<uip1ent, 6nter1ediate "asing 0"asing 6nter1ediate2+ "asing placed bet9een of the Surface and of the Production, 9hen it is necessary to isolate proble1 areas in bet9een, during the drilling of Fell, 7ubing+ 7ubing, Location+ >eographical location 9here the drilling e<uip1ent is installed to drill a Fell under conditions established 9here the Fellhead is, after its drilling, Prevents 8lo9out Unit 08*P2+ Ring seal valve or gate used to avoid uncontrolled lea=age of Fell fluids during *perations, UnitiHation+ Exploitation Agree1ent concluded bet9een neighbouring "ontractors to allo9 efficient develop1ent in a shared Field, aster Ealve+ ain control valve in the "hrist1as7ree of the Fell,

Eibration+ Eehicles specially designed to produce shoc= 9aves in the execution of Seis1ic Studies, Finche+ E<uip1ent used for lifting 9eights 9ith steel cable in Hydrocarbons Exploration and Exploitation activities, F*R+ Fater *il ratio 09ater oil ratio2,

Shoe+ 8otto1 tip 9hich guides a "asing or liner and is usually a chec= valve, ud Screen 0or Ru1ba2+ E<uip1ent that separates the drill cuttings fro1 screens, Article &,( Activities Hydrocarbons Exploration and Exploitation activities covered, activities inherent to search and discovery of Hydrocarbons, including field 9or= in geology, drilling of Exploratory and !evelop1ent Fells, as 9ell as Hydrocarbons Production Activities, Article ),( inistry of Energy and ines 7he inister of Energy and ines 0 6#E 2 is the governing body of Energy and ining Sector, 9hich 9ithin the functions related to Hydrocarbons Sub Sector, has the regulatory, developer and licensor authority, 8ecause of this, it is up to issue additional rules in order to have updated this Regulation, 7he 6#E through H>!, 9ithin the scope of its Iurisdiction, has the po9er to grant concession rights as 9ell as to grant, suspend, refuse and cancel ad1inistrative authoriHations that this regulation provides, as 9ell as =eep a record of the1, Article /,( PERUPE7R* PERUPE7R* is the state co1pany of private la9 of the Energy and ining Sector responsible for pro1oting, negotiate, conclude and 1onitor in its <uality of "ontracting Party, the Exploration and Exploitation activities in the fra1e9or= of contracts signed under the La9 #$ '5''3 or La9 !ecrees #$ ''44) and #$ ''44/, Article 5,( *S6#ER> *S6#ER> is the public body responsible for the supervision and fiscaliHation of co1pliance 9ith this Regulation in accordance 9ith Article / of the La9 creating *S6#ER>, La9 #$ '54&), La9 Fra1e9or= for Regulatory Agencies of Private 6nvest1ent in Public Services, La9 #$ '4&&', the "o1ple1entary La9 of 6nstitutional Strengthening of the Supervisory 8oard for 6nvest1ent in Energy 0*S6#ER>2, La9 #$ '45;; and its related supple1entary, a1ended and a1plifying regulations, Li=e9ise, this entity is e1po9ered to enact the provisions necessary to co1ply 9ith this rule 9ithin the scope of its co1petence, Article 4,( "o11unication 7he "ontractor is obliged to give notice to PERUPE7R* at the start, restart or ter1ination of its *perations, and any alteration or substantial change in its 9or= plan, Article .,( FiscaliHation Facilities 7he "ontractor is obliged to provide facilities that are 9ithin reach in the area 9here *perations are perfor1ed, so that representatives of *S6#ER> and PERUPE7R* can 1eet their fiscaliHation and 1onitoring functions, 9ithout altering the nor1al course of its *perations, Article ;,( Use and Ease1ent Rights 7he "ontractor 1ay re<uest use and ease1ent rights referred to in Articles .', .& and .) of the La9 and be liable to pay co1pensation for financial losses incurred in the exercise of such rights, 7he procedures to grant these rights 9ill carry out according 9ith the provisions in 7itle E66 of this Regulation, 767LE 66 SAFE7C, HEAL7H A#! E#E6R*# E#7 ud by vibrating

"HAP7ER 6 >E#ERAL PR*E6S6*#S Article 3%,( *bligations #ot9ithstanding the specific provisions contained in this Regulation, in relation to environ1ental protection and safety, the "ontractor and its Subcontractors shall co1ply 9ith the Regulations for Environ1ental Protection in Hydrocarbon Activities, approved by Supre1e !ecree #$ %)5(;&(E , as 9ell as its corresponding co1ple1entary rules and a1end1ents, in accordance 9ith the provisions of Article .4 of the La9 and other applicable Regulations, Article 33,( Environ1ental Protection 7he ca1ps and facilities 1eet the standards specified in the Regulations for Environ1ental Protection in Hydrocarbon Activities, Staff should co1ply 9ith regard to the protection of flora and fauna, according to the provisions of afore1entioned Regulation, Article 3',( Faste 7he 9astes and debris produced during the Exploration and Exploitation 9ill be handled as outlined in the Regulations for Environ1ental Protection in Hydrocarbon Activities, Article 3&,( Availability of rules 7o facilitate the 9or= of *S6#ER>, the "ontractor should have access to standards and specifications to use during its *perations and the ones that have used in the construction of its facilities, "HAP7ER 66 SAFE7C A#! HEAL7H Article 3),( Responsibilities 7he "ontractor shall be responsible for perfor1ing 9or= in accordance 9ith safety rules and regulations aplicable, as 9ell as the good 9or= practices of oil industry, Article 3/,( Prohibition of entry unauthoriHed Personnel 6s prohibited the entry of Personnel to the area 9here these activities perfor1 9ithout the per1ission of the "ontractor, Article 35,( 6ndustrial safety 7he "ontractor 9ill include industrial safety Personnel in field *perations, 7he responsibility of the cited Personnel 9ill include, 9ithout li1itation, 1aintenance, 1onitoring and i1ple1entation of safety guidelines, as 9ell as safety procedures at 9or= for different *perations, Article 34,( Security 1eetings 7he "ontractor and its Subcontractors should organiHe security 1eetings before the beginning of the 9or=, having special attention, 9ithout li1itation, to the follo9ing it1es+ a2 First aid, cardiopul1onary resuscitation 0"PR2, fire and survival techni<ues practices, b2 Security e<uip1ent, c2 First aid services, d2 Access control, e2 "ontingency plan,

f2 Safe distances for the use of energy sources, g2 7ransport security, h2 Health, alcohol and narcotics, i2 *ccupational health, I2 Storage and transport of explosives, fuels and che1icals, =2 Environ1ental considerations, l2 "li1atological considerations, 12 Fater operations 0if applicable2, Article 3.,( Accident reporting syste1 7he "ontractor shall i1ple1ent a reporting syste1 for accidents, aintain a 1onthly report about Security 1anage1ent, 9hich include accident statistics, 8e responsible for 1aintaining and pro1oting security and should perfor1 e1ergency drills and security 1eetings, Article 3;,( Reports of unsafe conditions 7he "ontractor 9ill i1ple1ent a syste1 to recogniHe, correct and report acts and unsafe condicitions, Article '%,( 7raining 7he "ontractor is obliged to provide per1anent training to its Personnel in the follo9ing areas+ a2 Security, b2 anage1ent vehicles, c2 First aids, d2 Fire practices, e2 Survival techni<ues, f2 "ontingency Plan, 7his obligation also enforceable 9ith regard to the Subcontractors Personnel, Si1ilarly, the "ontractor shall ensure that no Personnel 1e1ber or visitor 1oves to the area of *perations if previously not received a basic safety tal= and reports about the nature of 9or=, Article '3,( Preparation of Annual Activity Progra1 of Safety 0PAAS2 7he "ontractor shall prepare and develop a PAAS, 9hich should be sub1itted to *S6#ER> during #ove1ber of each year, 7he PAAS 9ill be for1ulated annually and include at least+ a, *bIective, b, >oals, c, Ris= "ontrol Activities+ ( 6nspections, ( Revision of 9or= Procedures 0security profiles2,

( "o11ittee d, 7raining+


( Safety and For=ing Procedures 0Security Profiles2, ( 7heoretical and practical basic training in prevention and extinguishing of fire, ( 8asic First Aid "ourses, ( Safety Lectures of / 1inutes, ( Survival "ourses 09hen correspond2, ( anage1ent and "ontrol of E1ergencies 9ith !angerous aterial, e, E1ergencies "ontrol+ 6nspection and e1ergencies, aintenance of syste1s, e<uip1ent and fire control 1aterials and other

( Revision, test 0si1ulations2 and "ontingency Plan Update 0P!"2,0O2 0O2 Article a1ended by Article ) of the Supre1e !ecree #$ %)&('%%4(E , published on August '', '%%4, 9hich reads as follo9+ PArticle '3,( Preparation of Annual Activity Progra1 of Safety 0PAAS2 6n #ove1ber each year, the "ontractor shall sub1it to *S6#ER> 6# a PAAS corresponding to the next year, 7he content, opportunity and procedure for the sub1ission of the PAAS be governed by the provisions of Security Regulation in Hydrocarbon Activities, its a1end1ents, substitute and co1ple1entary rules,Q Article '',( For1ulation of a "ontingency Plan 0P!"2 7he "ontractor shall for1ulate a "ontingency Plan for its facilities, that should be a9are of its Subcontractors, A copy of this plan 9ill be sent to *S6#ER>, '',3 7he P!" 9ill include response procedures and reports for each of the different types of e1ergencies that 1ay arise at each facility, 7hese P!" 9ill necessarily cover the follo9ing eventualities+ a, F6RE, explosion, lea=age, b, Hydrocarbons spills, c, Earth<ua=es, d, E1ergencies 9ith haHardous 1aterials, Additionally, as the case, 9ill include plans for+ a, Flooding, 1udslides or landslides, b, *perational e1ergencies, c, Accidents 9ith 1ultiple inIured, d, *ther, , '',' 7he existence of 1utual support plans 9ith other entities in the area, not detract fro1 the obligation to 1eet standards and applicable safety devices, '',& Fhen necessary, the P!" should be coordinated 9ith the authorities and entities involved,0O2 0O2 Article a1ended by Article ) of the Supre1e !ecree #$ %)&('%%4(E , published on August '', '%%4, 9hich reads as follo9+

PArticle '',( For1ulation of a "ontingency Plan 0P!"2 7he "ontractor shall for1ulate a "ontingency Plan for its facilities, that should be a9are of its Subcontractors, 7he content, opportunity and procedure for the preparation of the "ontingency Plan shall be governed by the provisions of La9 #$ './/3, La9 that establishes the obligation to prepare and sub1it "ontingency Plans, as 9ell as Safety Regulation in the Hydrocarbons Activities, its a1end1ents, substitute and co1ple1entary rules,Q Article '&,( Fater operations 7he "ontractor 9ill i1ple1ent policies and procedures for *perations in 9ater 0sea, rivers, la=es2, 7hese procedures include, 9ithout li1itation, to+ provide 1otor boats, lifeguard and e1ergency e<uip1ent, including co11unications, navigation lights, e1ergency shutdo9n syste1 for outboard 1otors and good lighting for night landings and ship1ents, 6nstruction boo=lets should be issued 9ith safety procedures, Article '),( Rivers 7he river crossings 9ill be per1itted only on points established by the "ontractor 9hich are approved by the !6"AP6, Article '/,( Ships and aircraft 7he "ontractor shall apply its safety rules and procedures for *perations 9ith ships and aircraft, Li=e9ise, 9ill include types, logistics, navigation progra1, flight schedule progra1, cargo 1onitoring reports of the *perations, 7his activity 9ill be, as is the case, ruled by the !6"AP6 or !>7A, Article '5,( Prohibitions 7he "ontractor shall prohibit the consu1ption of alcohol, narcotics and other toxic substance: ensuring that this prohibition should be 9idely disse1inated to Personnel before starting 9or=, Article '4,( Health of the 9or=ers 7he "ontractor shall ensure 0as far as reasonably practicable2that the contracted 9or=ers for their *perations are healthy, 7he Personnel in charge of food handling and preparation 9ill be periodically revie9ed, Article '.,( Safety standards 7he "ontractor shall have a 9or= per1it syste1 for evaluating high(ris= activities such as hot 9or=, 9or=ing at heights, 9or= in confined spaces and electrical 9or=, and in general for all types of activities that represent ris=s, 7his 9or= per1it syste1 shall be considered in the Ris= AnRlisis and 9ill be part of the Safety 6nternal Regulation, Article ';,( 61ple1ents 7he "ontractor 9ill provide clothes to the Personnel, suitable tools and protective e<uip1ent needed for the various tas=s to be perfor1ed, Article &%,( E1ergencies 6n places 9here che1icals are handled, including battery acid, it 9ill re<uire at least one e1ergency station for the attention of any 6ncident, Article &3,( Seatbelts 7he use of seat belts in vehicles and aircraft is 1andatory, as 9ell as lifeguard for 9ater transport vessels, Article &',( !river license Eehicle drivers have valid driverKs licenses and categories, Article &&,( Speed li1its

According to the areas 9here vehicles should travel, speed li1its are set, 9hich 9ill be located in places visible to drivers of vehicles, Article &),( "o11unications *perational units 0seis1ic activity, drilling, production or other2 9ill have direct co11unication 0radio, telephone, etc,2 Fith the base ca1p or any other operational control center, "HAP7ER 666 HEAL7H A#! SAFE7C "*#!676*#S 6# 7HE "A PS Article &/,( 8asic conditions for Staff acco11odation 7he "ontractor is obliged to provide to its Personnel basic conditions for acco11odation in order to guarantee the life, health and 9elfare of those, according to the activities underta=en and relevant environ1ental re<uire1ents, Article &5,( Priority in Staff acco11odation 7he "ontractor is re<uired to install 9ith priority, appropriate acco11odation at "a1p to the Personnel, Article &4,( 6nstallation of the base ca1p 7he base ca1p, should be installed by follo9ing these safety 1easures+ &4,3 Should be established in areas 9here it is found that there is no danger of landslides andLor dettach1ents, active geological faults, overflo9ing rivers or other9ise, 9hich present a ris= to hu1an life, &4,' 6t 9ill ta=e into account the necessary safety 1easures to avoid endangering the lives, integrity and health of the Personnel, &4,& Should be placed in open areas free of fallen trees or logs that 1ay cause accidents to Personnel, &4,) Set up ca1p on the high ground as the case and in the vicinity of a 9ater source, &4,/ 6f it 9as inevitable to have be set up on 9etlands, flood(prone areas or other situations that involve ris= to the health of Personnel, these conditions should be offset by appropriate actions and L or using co1ple1entary facilities, Article &.,( Additional facilities at base ca1p 7he base ca1p, in addition to co1plying 9ith the #ational "onstruction Regulations, approved by Supre1e !ecree # $ %5&(4%, E6as 9ell as co1ple1entary rules and a1end1ents, as applicable, shall have 9ith+ &.,3 !octor and First Aid 7opical e<uipped 9ith basic diagnostic e<uip1ent 0sphyg1o1ano1eter, stethoscope, ther1o1eter, etc,2, instru1entation for 1inor surgery and a stoc= of 1edicines pro1ptly replenished, 7his provision shall not be re<uired 9hen the base ca1p is in a place 9here there are public 1edical centers properly i1ple1ented, &.,' Radio e<uip1ent and siren for local alar1, &.,& Ade<uate fire extinguishers and strategically placed in <uantity and <uality according to the ris=s involved, as provided in this Regulation, &.,) Roofing deposits for fuel located in a ris=(free place that does not co1pro1ise the ca1p,

&.,/ 8edroo1s, =itchen, diningroo1 and foodstuff deposits, &.,5 7oilets and drin=ing 9ater services, &.,4 Safety e<uip1ent, Article &;,( Provision of 1obile ca1p 7he 1obile ca1p shall be provided 9ith+ &;,3 7ents, &;,' "a1p beds 9ith 1os<uito nets, 9here it is needed, &;,& "are =its First Aid, &;,) Food needed, &;,/ Safety e<uip1ent, &;,5 Fire extinguishers according to the ris=s involved, &;,4 Sanitary facilities as possible, 9hich should be neutraliHed 9ith a seal of calciu1 oxide before leaving, &;,. "o11unications e<uip1ent, Article )%,( 6nstallation location of base ca1ps in ende1ic areas 7he base ca1p should be installed in open spaces, surrounded by open area a9ay fro1 any condition conducive to the develop1ent of vector insects, Article )3,( !oors and 9indo9s protection 7he doors and 9indo9s of base ca1p facilities located in ende1ic areas should be protected 9ith 9ire 1esh or fine plastic 1esh enough to preclude the entry of any vector insect or other har1ful ani1al, Article )',( 6nsecticide use in external and internal areas 7he internal surfaces of the housing base ca1p located in an ende1ic area should be sprayed 9ith insecticides =no9n residual action and prolonged po9er that do not affect Personnel, 7he application period 9ill be according to the 1anufacturerKs instructions, Article )&,( Appropriate hygienic conditions 7he base ca1p located in an ende1ic area 9ill have appropriate hygienic conditions that 9ill protect the food and 9ater fro1 conta1ination and 9ill also have restroo1s, 9hich 9ere located 9ithin the sa1e, 7he Personnel in charge of handling and food preparation 9ill be periodically revie9ed, Article )),( 6nsecticides for tents 6n the case of 1obile ca1ps installed in ende1ic areas, tents should be sprayed regularly 9ith insecticide, ta=ing this to avoid the possibility of toxicity or fla11ability of the occupants, Article )/,( Provision of 1os<uito nets Each bun= bed is e<uipped 9ith fine 1esh 1os<uito net, 9hich should periodically be i1pregnated 9ith an insecticide 9ith residual effect, Article )5,( Latrines in case of te1porary ca1ps

7he te1porary ca1p should have latrines close to the ca1p and protected against insects, 7hese should be i1pregnated 9ith insecticides periodically in accordance 9ith the re<uire1ents of healthiness, Article )4,( >raduated health care personnel in te1porary ca1ps 7he te1porary ca1p should have graduated health care Personnel or nurse, 9hich should ta=e care of inspecting health facilities and 1onitoring the i1ple1entation of the rules of this "hapter, "HAP7ER 6E E#E6R*# E#7 Article ).,( Environ1ental 61pact Assess1ent 0E6A2 7he "ontractor shall sub1it to the !>AAE prior to co11ence1ent of any Exploration andLor Exploitation Activity, an Environ1ental 61pact Assess1ent 0E6A2, according to the provisions of Article 3% of 7itle 6E of the Regulations for Environ1ental Protection in Hydrocarbons Activities, Article );,( 61pact prevention 7he "ontractor shall 1ade regular chec=s of the i1pact prevention and 9ill be ta=en control 1easures according to P A, Fhen necessary, additional or alternative 1easures 9ill begin to reduce unintended i1pact, Article /%,( Audit 7he "ontractor shall conduct internal environ1ental audits according to P A, and to the Regulations for Environ1ental Protection in Hydrocarbon Activities, Article /3,( Shot(Seis1ic For seis1ic 7rip Points shall be observed the rules set in the Regulation for Environ1ental Protection in Hydrocarbons Activities, Should avoid areas of unstable soils or 9here it is =no9n of the existence of underground cavities, Article /',( Li1itation of trac=s Fill be li1ited the use of trac=ed vehicles or earth1oving e<uip1ent in the operationsin the construction and 1aintenance of roads, construction of 9ell platfor1s, pipelines or 1aIor proIects and in the case of vibrators for seis1ic, Article /&,( "onstruction of tread 7he opening of treads for seis1ic lines 9ill do, if it is neccesary, according to the Regulation for Environ1ental Protection in Hydrocarbons Activities, Fill avoid the cutting trees 9here possible, by adIusting the settings of the trip point, Article /),( Selection of routes 9ith lo9er i1pact Recognition be 1ade prior to the 1ar=ing of each seis1ic line, roads and pipelines to select the route that causes the lo9est i1pact, 6n places 9here is necessary to cross a river, its beds and ban=s 9ill be regularly inspected and crossings 9ill be under 1aintainance to prevent destabiliHation, !redge or deepen not any 9ater9ay, river or 9ater access, Article //,( Li1ited speed of the vessels Speed li1its are set to the vessels, 9hich 9ill be regulated by the !6"AP6, to ensure safe operation and to prevent erosion of riverban=s,

Article /5,( "attle protection 6n areas 9here cattle presence is verified, it should be 1oved fro1 places 9here seis1ic loads are planned to detonate at a 1ini1u1 distance of t9o hundred 0'%%2 1eters of the seis1ic line, 6f for reasons of space or other reason 9ill not be possible, special supervision is re<uired for cattle, Article /4,( Fetlands 6n case of existence of 9etlands in the "ontract Area, the "ontractor shall prepare a detailed plan in the E6A and P A, Article /.,( !isturbances in a<uatic environ1ents 7he "ontractor shall instruct its Personnel on ho9 to 1ini1iHe disruption, actual or potential, of 9ildlife, both on land and 9ater bodies, Article /;,( Protection of nesting areas Should be avoided activities or *perations in areas of nesting 9aterfo9l and terrestrial, as 9ell as resting places for 1igratory birds, breeding of reptiles, 1a11als and a<uatic, Article 5%,( Using air guns 7he relevant E6A and P A 9ill provide an specific plan for each area 9here Air guns are used, Article 53,( Prohibiting the use of explosives According to current practices, should not be used explosives in the sea, rivers, la=es and s9a1ps except in exceptional cases, for 9hich should be obtained the express authoriHation of the !>AAE, 9hich 9ill be co11unicated to *S6#ER>, 6n case dee1ed necessary, the !>AAE 1ay re<uest the technical opinion to other co1petent ad1inistrative authorities, Article 5',( Report of death or inIury to ani1al species 6f as a conse<uence of Exploration andLor Exploitation activities is detected evidence of death or substantial da1age to ani1al species, should be reported i11ediately to the !>AAE and *S6#ER>, explaining the causes and actions ta=en to solve the proble1, Article 5&,( Archeological sites 6n the Exploration andLor Exploitation activities, 9ill be avoid archeological sites, Article 5),( 7al=s about archaeological value 8efore starting Exploration andLor Exploitation activities in an area 9ith archaeological potential, the Personnel 9ill be infor1ed about the archaeological i1portance of the region, the nature of an archaeological site, ho9 to recogniHe, the proper procedure to report its existence and 1easures for its preservation, Article 5/,( Archeological discoveries 6f it is discovered a site, relics or archaeological re1ains, 9ill be i11ediately infor1ed of the finding to the #ational 6nstitute of "ulture and PERUPE7R*, 9ho 9ill notify *S6#ER> and, if appropriate, other co1petent authorities, Article 55,( Restorations of areas and property da1age Upon co1pletion of Exploration andLor Exploitation activity, and 9hen re1oved the facilities or abandoned an area or field of *perations, the area should be restored as indicated in the E6A or the correspondine environ1ental 1anage1ent tool, 6f the natural drainage 9ould have been affected in so1e 9ay, it should be restored,

7he 1odifications that 1ay have been 1ade in respect of third partiesN goods prior 9ritten per1ission of the o9ners andLor holders, as is the case, should, if possible, returned to their original state upon co1pletion of the activity for 9hich 9as 1odified, Article 54,( Restoration of soil co1paction Areas of soil that have been co1pacted, should be re1oved in depth, to help infiltration of 9ater and pro1ote natural vegetation, Article 5.,( "o1pletion of Activities Upon co1pletion of Exploration andLor Exploitation activities in the "ontract Area, should be i1ple1ented the 1easures contained in the Abandon1ent Area Plan, Article 5;,( Abandon1ent of activity 7he abandon1ent of any Exploration andLor Exploitation activity, should be reported to PERUPE7R* and *S6#ER> 9ith thirty 0&%2 days before the deadline and probably the latter, 9ill infor1 the co1petent authorities, Article 4%,( Restoration after seis1ic Fithin three 0&2 1onths after having co1pleted the seis1ic survey, the "ontractor and *S6#ER> verify the restoration of the area, 6n deter1ine places, 9ill ta=e a series of representative photographs to identify the conditions of the Seis1ic Lines at regular intervals, providing a 1easure of its recovery, 6f the "ontractor carries out verifications, the results should be sent to *S6#ER>, Article 43,( 6nfor1ation about environ1ental protection "ontractors shall be responsible that brochures or pa1phlets su11ary of the environ1ental protection policy be placed in conspicuous places in each ca1p, Article 4',( Fuel Storage Strictly controlled fuel storage in the ca1p, 7he storage of fuels, lubricants and che1icals should be in a closed roo1, covered 9ith 9aterproof, Fuel tan=s should be e<uipped 9ith safety valve 09hich is loc=able to prevent unauthoriHed use2, Any lea= or fuel conta1ination to soil or 9ater, according to Article .% of this Regulation should be reported to *S6#ER> and 6#E proceeding to clean to prevent any threat of pollution, Article 4&,( 6nventory and record of usage of fuel and pollutants Should ta=e an inventory of the volu1es of Hydrocarbons or potential conta1inants stored in the ca1ps, ships, boats or transported by tan=er or si1ilar, Additionally, =eep a record of use and storage of all fuels, lubricants and che1icals, Should also register conta1inated fuel, Article 4),( #on reused Hydrocarbons treat1ent 7he Hydrocarbons that cannot be reused should be treated according to the corresponding P A, Article 4/,( !isposal of substances 7he use, handling and disposal of che1ical substances are 1ade according to the guidelines of Safe Handling of "he1ical Substances 0SH*"2,

Article 45,( Faste disposal 8efore leaving base ca1p, all 9aste 9ill be collected and disposed properly in accordance 9ith the respective P A, Article 44,( Faste re1oval #on(biodegradable 9aste fro1 flying ca1ps 9ill be transported to base ca1p for proper treat1ent according to the respective P A, Article 4.,( Faste handling !uring the execution of the activities of Hydrocarbons Exploration and Exploitation activities, 9aste handling should be 1onitored and carried a record of the sa1e according to P A, Article 4;,( 611inent pollution 6f 6f a pollution threat to ground9ater happened, the "ontractor shall infor1 *S6#ER>, as 9ell as local authorities and notify local people of the actions to ta=e, in 9hat 9as relevant, Article .%,( Report of environ1ental accidents 7he responsibility to report environ1ental accidents to *S6#ER> and 6#E , 9ill correspond to the "ontractor, 7he report and investigation of environ1ental accidents is part of P A, 6f an Environ1ental accident occurs, it should be 1ade a9are of *S6#ER> and 6#E 9ithin t9enty(four 0')2 hours has occurred it, 9ithout preIudice to file a supple1entary report 9ithin seventy(t9o 04'2 hours of the occurrence of event, 6n addition, the "ontractor shall give both entities, 9ithin fifteen 03/2 calendar days follo9ing the occurrence of the environ1ental accident, a report on 9hich account the environ1ental da1age caused and the 1easures e1ployed to 1itigate it, Article .3,( Environ1ental accidents "onsidered environ1ental accidents+ a2 Hydrocarbons spills andLor lea=s, b2 61proper treat1ent or disposal of 9aste, c2 6nadvertent cuts or re1oval of vegetation, d2 Loss of flora and fauna, e2 *thers that affect the environ1ent, Article .',( Application procedures in environ1ental corrective 1easures 6n the field you should define an appropriate procedure enabling the ti1ely i1ple1entation of corrective 1easures for environ1ental accidents, 767LE 666 EDPL*RA76*# "HAP7ER 6 EDPL*RA7*RC A"76E676ES Article .&,( Activities "ontractors 1ay carry out the follo9ing Exploration activities, 9hich 1ention has referential character but not li1ited+ a2 >eophysical Studies 0 agneto1etry, >ravi1etry, Seis1ic2, b2 Re1ote Sensors Studies 0aerial photos, satellite i1agery, airborne radar, etc2,

c2 >eoche1ical studies, d2 >eological Survey, e2 !rilling and Fell "o1pletion, f2 Production 7esting, Article .),( Exploratory plan *nce signed the "ontract, the "ontractor shall send to PERUPE7R* an Exploration plan that includes the 1ini1u1 9or= progra1 agreed in the contract, 9ithin forty(five 0)/2 days before the start of activities, Article ./,( Seis1ic data 7he ac<uisition and processing of seis1ic data 9ill be conducted according to generally accepted standards in the industry and area conditions, Article .5,( Seis1ic report 7he "ontractor shall =eep a daily report of studies or 9or= carried out, 6n the case of seis1ic surveys include infor1ation on the siHe of the explosive load, the nu1ber of shots and accurate infor1ation about the location of the trigger points, Reports should be available for revie9 by PERUPE7R*, 0O2 0O2Paragraph a1ended by Article 3 of Supre1e !ecree #$ %..('%%;(E , published on !ece1ber 3', '%%;, 9hich reads as follo9s+ P!aily reports 9ill be sent to PERUPE7R* 9hen they are re<uired by such entity,Q "HAP7ER 66 Explosives Handling Article .4,( Storage of explosives 7he explosives should be stored according to Rules and Procedures of the Regulation of !6S"A E" or #FPA );/ rule, in the event of not apply the first, Article ..,( Explosives deposits in surface 7he deposits for explosives built on surface should have the follo9ing characteristics+ a2 8e built 9ith bulletproof 9alls, ceilings and floors covered 9ith 9ood, b2 Have doors fitted 9ith security loc=s and =eys, c2 Have doors fitted 9ith security loc=s and =eys, d2 7he interior should be 9ell ventilated, dry and clean, e2 Having lilghtning protection tea1s 0Lightning conductor2, f2 Having electrical installations explosion(proof, g2 Avoid that electrical po9er cables andLor data pass over the deposits of explosive, Article .;,( Storage of explosives and blasting caps 6t is forbidden to =eep explosives out of gunpo9der or deposits, 7he blasting caps should be stored at a 1ini1u1 distance of one hundred 03%%2 1eters of the deposits of explosive, Article ;%,( Handling of explosives and blasting caps 7he procedure to open and re1ove explosives and blasting caps fro1 their original pac=age shall do outside the deposits,

Article ;3,( Storage of boxes 9ith explosives 7he boxes that have explosives shall no put in contact 9ith the 9alls, 7hey shall pile up according to 1anufacturer instructions and in no case shall reach a height greater than t9o 0'2 1eters, Article ;',( 6nspection of the deposits Explosive deposits should be revised 9ee=ly, be provided of security ads or signs that clearly identify the1 and have ade<uate fire extinguishers according to the rule #FPA 3%, 7he area surrounding the explosives deposit 9ill be =ept clear of trash, 9eeds or 1ount to 1ini1iHe fire haHards, 6s banned the presence of fla11able products at distances less than t9enty(five 0'/2 1eters of the explosives deposits, 7he explosives deposits 9ill be guarded t9enty(four 0')2 hours of the day for <ualified surveillance Personnel, Article ;&,( Peri1eter fence in the explosive deposits Should build a peri1eter fence 9ith barbed 9ire around the explosive deposits, 7he distance bet9een the fence and deposits should be t9enty 0'%2 1eters, Local security conditions 1ay deter1ine 1aIor re<uire1ents, Article ;),( Return and disposal of unused explosives 7he explosives not used in the 1axi1u1 period of one 032 year should be returned to the 1anufacturer or destroyed under its supervision, as soon as possible, according to the 1anufacturerKs safety procedures, 6f destruction is the option, records should be prepared specifying <uantity, type and final disposal of 9aste, Article ;/,( Responsible personnel for explosives 7he deposits 9ill be in charge of experienced Personnel in storage, transport and explosive handle, Article ;5,( "ontrol in delivery of explosives, 7he delivery of explosives 9ill be 1ade to the presentation of the order duly co1pleted and signed by authoriHed Personnel, Should =eep an inventory of explosives, and only be allo9ed entry into the explosive deposits duly authoriHed persons, registering their na1e and signature 9hen entering and leaving, and the date and ti1e of occurrence, Article ;4,( Responsible for the processing to ac<uire explosives 7he "ontractor is responsible for processing the per1its for the ac<uisition or transportation of explosives to the co1petent authority, Article ;.,( Prohibition for handling explosives 6t is forbidden to transport or handle explosives under the influence of drugs or alcohol, Article ;;,( 7ransport of explosives and blasting caps For the transportation of explosives and blasting caps should 1eet the follo9ing provisions+ a2 Eehicles used to transport explosives shall be in good condition and should be inspected daily, b2 Parts of the vehicle in contact 9ith the explosive 9ill be covered 9ith suitable 1aterials so that no spar=s, c2 6n refueling the vehicle, should benoted that this is 9ithout explosive,

d2 S1o=ing is prohibited 9hen is carrying explosives, e2 Each vehicle used for transporting explosives shall be e<uipped 9ith at least t9o 0'2 extinguishers of ',/ =g,, fully charged and in good condition, f2 Eehicles transporting explosives shall avoid transit through areas of congestion of population and, if possible, not be carried explosives during the night, g2 7he explosives and blasting caps should be transported separately and in different vehicles, in 9ooden boxes to prevent electro1agnetic induction, h2 6t is banned the use of the radio 9hen you are carrying blasting caps, i2 Eehicles transporting explosives shall not par= in populated areas or ca1ps, Article 3%%,( Personnel of security in the transport of explosives Security personnel 9ill acco1pany the transport of explosives fro1 the reception point to its final destination, 7he security Personnel 9ill sign the referral guide specifying the <uantities of explosives both deliveryLdeparture and the receptionLarrival, Article 3%3,( Analogies of rules in different 1eans of transport For cases of 9ater and air transport 9ill be used si1ilar rules to those set out in the case of land transport, Article 3%',( @ualified personnel for loading and detonation Personnel responsible for loading and detonation of explosives 0trigger2 should be properly trained and <ualified in the handling, storage, preparation and use of explosives, Prior to the co11ence1ent of seis1ic *perations, 7rigger assitant Personnel, security Personnel and others 9ho 1ay have contact 9ith explosives, should receive appropriate training, Article 3%&,( *perations 9ith explosives, *perations 9ith explosvies 9ill be conducted and executed by experienced Personnel, trained and co1petent, Personnel 9ho handle explosives should+ a2 !e1onstrated that have the necessary =no9ledge, b2 8eing able to 1a=e good and safe choices in every situation, c2 7o be in opti1u1 health conditions and not be addicted to any toxic, narcotic or drug any, d2 Having =no9ledge of the local rules, La9s and regulations applicable to 9or=, e2 Have obtained a certificate for the use of explosives, given by the !6"S"A E" or entity that replaces it, 767LE 6E !R6LL6#> Article 3%),( 61ple1entation of technical rules and regulations Rules, techni<ues and specifications that used in the drilling of 9ells, both in the Exploration or Exploitation phase, are si1ilar, differing only in the 1ore de1anding 9ith regard to the safety of the exploratory operation, due to ignorance of the conditions of the subsoil, *nce =no9n the area,

these rules 9ill be adapted, 9ith appropriate Iustification, to the real conditions that are, 7he rules of this 7itle are applicable to service e<uip1ent and 9or=over, as applicable, 7he docu1entation in 9hich is re<uested the installation of a platfor1 should include the procedure to be used in its abandon1ent and recovery, "HAP7ER 6 !R6LL6#> E@U6P E#7 6#S7ALLA76*# Article 3%/,( 6nfor1ation about Fell location 7he "ontractor shall obtain prior the necessary infor1ation concerning 9ith the location of the future Fell, including its influence on populations of the area, 9eather conditions, topography and soil resistance, 9hich 9ill allo9 proper installation of drilling e<uip1ent and planning of their operations, Article 3%5,( !etection of sulfhydric acid 7he "ontractor shall in<uire into the possible presence of H'S, S*', and "*' in the area to develop the appropriate "ontingency Plan, as indicated in 3'; of this Regulation, Article 3%4,( Record of 9ells drilled in the "ontract Area At the re<uest of the "ontractor, PERUPE7R* 9ill provide infor1ation that is available about the previously drilled Fells in the "ontract Area, 7he expenses that PERUPE7R* incurred for this service shall be borne by the "ontractor, Article 3%.,( Location selection 7he selection of the location as 9ell as the construction of its access and the platfor1 9here the drilling e<uip1ent 9ill be installed, 9ill follo9 the rules specified in the Regulation for Environ1ental Protection in Hydrocarbon Activities, Article 3%;,( !rilling e<uip1ent conditions 7he "ontractor shall use suitable drilling e<uip1ent for the planned operating conditions, 9hich should have excess capacity to drill and co1plete the Fell to its target, 8efore the beginning of *perations, the one in charge of drilling shall verify in its entirety, the 9or= procedure for asse1bling of the drilling e<uip1ent, Article 33%,( *peration by <ualified Subcontractor 7he "ontractor shall verify that the co1pany that runs the drill has the experience, e<uip1ent needed and the appropriate 1eans to carry out the drilling according to the prognosis and, if necessary, to resolve proble1s that arise in the drilling of the Fell, Article 333,( "o1pliance 9ith specifications relating to platfor1s 7he "ontractor shall co1ply, in its drilling 9or=s, 9ith the follo9ing specifications concerning to the Iungle, 7hese specifications 9ill be 1odified depending on 9hether other environ1ent+ a2 7he drilling platfor1 9ill have an area not exceeding t9o 0'2 acres for a Fell and a half 0%,/2 acre for each additional 9ell to hole fro1 one location on land, offshore, river or lacustrine platfor1s, 7he di1ensions of the platfor1s on land 1ay be extended only for the approach of helicopters in an area needed for this purpose, b2 Should build contain1ent di=es 9ith interior gutters around the peri1eter of the platfor1, 7he fluvial or industrial 9aters shall be carried to the pools of separation by 1eans of gutters, c2 6f necessary, in the case of cutting of trees and earth9or=s for a location, design and construction techni<ues should 1ini1iHe the ris= of erosion,

d2 Sin=s or 9aste disposal of drilling fluids, should have the follo9ing characteristics that 1ay change if the environ1ent 9here is 9or=ing, 9arranted it+ ( 8e 9aterproof and have da1s if there is ris= of conta1ination of surface 9ater or ground9ater, ( Have a 1ini1u1 capacity of %,'5 1& per 1eter drilled 0%,/ bbl, Per foot of Fell drilled2, ( 6nclude one 032 1eter vertical clearance of capacity, depending on the variables that are expected in the drilling progra1 and according to the terrain features, ( 8e located preferably in a high portion of land 9ith slopes less than five percent 0/S2 a9ay fro1 9ater bodies, 7he excavated 1aterial should be collected into one place to facilitate the filling, of the ( ay be divided into sections for ease of decanting and use of 9ater in the reco1position ud, ( #ot used for 9aste disposal, or for other solid 9aste or other fluids, e2 #o pools 9ill be built to store *il, 7he pools built for other purposes 1ay be used to contain *il in case of e1ergency only proven, Article 33',( "overing of pools and drains At the end of drilling, pools and should be covered to ensure protection of soil and ground and surface 9ater, 7he techni<ues used are selected according to geographical location and <uality of fluids and 9astes containing, 7he techni<ue or techni<ues selected for each type of pool, should be indicated in the P A of the E6A and ensure no degradation of soil and no pollution of ground and surface 9ater, Article 33&,( ini1u1 distances to be observed 7he Fells to be drilled 9ill be located at the follo9ing 1ini1u1 distances+ At forty 0)%2 1eters of Hydrocarbon flo9 pipelines, At forty 0)%2 1eters of unpaved roads, At a hundred 03%%2 feet of any construction or facility, At a hundred 03%%2 1eters fro1 the boundary of the "ontract area 0except in the situation referred to in Article '3/ of this Regulation2, !o not allo9 unpaved roads are built or done any type of construction or installation 9ithin one hundred 03%%2 1eters of a Fell in drilling, 7his Article does not apply to *perations at sea 0offshore2, 6n the ones carried out in land, under design of offshore platfor1s *perations in order to reduce the environ1ental i1pact area of *perations, shorter distances 1ay be used, prior report to *S6#ER> and the !>AAE, 0O2 0O2Paragraph a1ended by Article 3 of Supre1e !ecree #- %);('%%;(E , published on ?une 3&, '%%;, 9hich reads as follo9s+ P7he distances listed above do not apply to *perations at sea 0*ffshore2, 6n the ones carried out in land, under design of offshore platfor1s *perations in order to redue the enviro1ental i1pact area of *perations, shorter distances 1ay be used, Tprior report to *S6#ER> 6# and the !>AAE,

6n the oil operations at sea 0*ffshore2 fishing activities should 1aintain a 1ini1u1 distance of one hundred 03%%2 1eters 9ith respect to the platfor1s, Li=e9ise, 9ater sport activities li=e s=iing, spearfishing, sailing activities, boats, a1ong others, should respect this 1ini1u1 safety distance,Q Article 33),( Production drilling platfor1s Fhen it 9as necessary and inevitable the Fell drilling incide or on production platfor1s, the "ontractor shall, before the start of this activity, infor1 to *S6#ER>, 6n this case, the "ontractor shall give at least the follo9ing infor1ation+ a2 7echnical and econo1ic reasons to Iustify the operation, b2 E<uip1ent that 9ill be used, c2 E<uip1ent that nor1ally operate in the area and 9ill be paralyHed during the operation, d2 *peration plan, e<uip1ent, sensors and alar1s to ensure the safety of the operation, e2 Fire, evacuation, notices and aid plans, in case of e1ergency, f2 For e1ergency cases, the list of supervisory Personnel responsible for transportation and 1edical assistance, as 9ell as the respective telephone nu1bers, Article 33/,( !rilling near to the bloc= boundary 6n case drilling in the vicinity of the bloc= boundary, the botto1 of the Fell should be no less than one hundred 03%%2 1eters fro1 the vertical proIection of the boundary of the "ontract Area, except the situation described in '3/ of this Regulation, Article 335,( "o11unications E<uip1ent 7he drilling e<uip1ent should have a radio or other e<uivalent 1eans that allo9s an efficient and continuous co11unication 9ith the base, Article 334,( Lighting Syste1 7he lighting syste1, including electrical cables and s9itches, should be explosion proof according to AP6 RP(/%%, AP6 RP(/%/ and #FPA(4% regulations, or those replacing, Article 33.,( Engine exhaust 7he engine exhaust of the drilling e<uip1ent should have ade<uate 9ater(cooling devices and spar= arrester, or be internal trapping exhaust spar= arrestor to prevent spar=s output abroad, 7he floor and 1etal ladders of the drilling e<uip1ent should have their steps and handrail 9ith nonslip 1aterial and in good state of conservation, Article 33;,( First Aid Units 6n place of the drilling, the e<uip1ent should have first aid and evacuation units, 6f this is not possible, the tea1 should have specialised Personnel that allo9s the attention of Staff until the evacuation unit reaches, Article 3'%,( Prohibition of s1o=ing and *pen Fire S1o=ing is prohibited 9ithin a radius of fifty 0/%2 1eters fro1 the Fell, Ads in this regard should be clearly visible, Ho9ever, s1o=ing is allo9ed indoors provided there is appropriate 9ithin this radius, 9hich should be clearly identified, Li=e9ise, do not allo9 the use of open fire 9ithin a radius of fifty 0/%2 1eters fro1 the Fell,

Article 3'3,( AP6 regulations 6n drilling activities, best practices should be used by AP6 0latest edition2, or any other institution of international standing, nor1ally used in the oil industry, Are 1entioned 9ithout li1itation+ RP 'A(LRRF! and RP 'A(LRF!(S3 Practices reco11ended for planning, designing and building fixed platfor1s offshore, SPE" '8 Specification for steel pipe 1anufacturing, SPE" '" Specifications for offshore cranes, RP'! Reco11ended practices for operation and 1aintenance of offshore cranes, SPE" 'F Specifications for 1ooring chains, SPE" 'H Specifications 1anganese carbon steel for offshore platfor1, RP '6 Reco11ended practices of 1oorings for floating drilling units, RP 'J Reco11ended practices for the use and care of co1pensators 0MRaisersM2 of 1arine drilling, RP 'L Reco11ended practices for planning, design and construction of heliports in offshore fixed platfor1s, RP ' Reco11ended practices for design testing of steel anchors for floating structures, RP 'P Reco11ended practices for 1ooring syste1 analysis of floating drilling units, RP 35 @ Reco11ended practices for design and construction of 1arine drilling co1pensators, SPE" 35R Specifications for design, range and testing coupling of 1arine drilling co1pensating, RP '7 Reco11ended practices for the design and construction of tensioned platfor1s, SPE" 'F Specifications of steel plates produced by ther1o1echanical processes for offshore structures, SPE" 'C Specifications of steel plates <uenched and te1pered for offshore structures, RP 'D Reco11ended practices for ultrasonic test of offshore structures, SPE" )F Structural specifications for drilling and Fell service, RP )> Reco11ended practices for use and 1aintenance of structures of drilling and service of Fells, SPE" .A Specifications and procedures reco11ended for inspection and 1aintenance of lifting e<uip1ent for drilling and production, SPE" ." Specifications and procedures reco11ended for inspection and 1aintenance of lifting e<uip1ent for drilling and production, RP /%% Reco11ended practices for classifying locations for electrical installations in oil facilities, RP /%/ Reco11ended practices for classifying locations for electrical installations in oil facilities classified as "lass 3, Uone %, Uone 3 and Uone ', Article 3'',( Prevents explosions(8*P 7he 8*P asse1bly should have ade<uate capacity for ris=, exposure and degree of protection needed to control Fell pressure and protect the environ1ent, 7heir lifters 1ay not be of lo9er ran= than those specified by the AP6 SPE" 5A 0or the specification that replaces or exceeds2 and should correspond to the Fellhead, Article 3'&,( 8*P ini1u1 7he 8*P asse1bly for a Fell, except in areas of proven depletaciGn, should be co1posed of+ 3 8*P of blind gates, 3 8*P of pipe gates, 3 8*P spherical or annular at the top,

7he lines to vent the Fell should be, at least, one bet9een the lo9er and 1iddle controls and one under the lo9er, Article 3'),( Pressures 7he 9or=ing pressure of the valves, lines and exhaust 1anifold should be at least e<ual to that of the control sets, Article 3'/,( Accu1ulator 7he control syste1 of the 8*P should have a battery that has at least the follo9ing features+ a2 "apacity to close a 8*P of gates and annular si1ultaneously, b2 "an close co1pletely the 8*P of gates 9ithin the period of thirty 0&%2 seconds or less, c2 "an close co1pletely an annular 8*P up to three hundred fifty 0&/%2 11 dia1eter hole in a period of sixty 05%2 seconds or less and 1ore than three hundred fifty 0&/%2 11 in the period of ninety 0;%2 seconds or less, d2 7o recover pressure drop of 9or= in a 1axi1u1 of five 0/2 1inutes, e2 Having 1ini1u1 nitrogen pressure of eighty 0.%2 =gLc1', if only operated 8*P of gates and one hundred and forty 03)%2 =gLc1' if annular 8*P operates, f2 Having 1ano1eters on each nitrogen container and valve control syste1 8*P g2 8e operated by t9o 0'2 auto1atic 1eans and one 032 1anual, Article 3'5,( "ontrols panel of the 8*P 7he control and the 1aster panel to operate the 8*P should be located at a safe distance a9ay fro1 the Fell, 7he driller should have a control panel satellite to its reach 9here conditions allo9, Article 3'4,( Record and control of drilling conditions 6n addition to the unit and instru1ents used for control and recording of drilling conditions during exploratory drilling should have at least the follo9ing control e<uip1ent+ a2 7an= level indicators and return ud used to deter1ine the volu1e of drilling fluid, 7he tan= level indicator should have audiovisual alar1 for the !riller, b2 6ndicator and record of pressure of the pu1p, c2 Record the 9eight of return d2 Record of the te1perature of e2 >as detection unit in the ud, ud input and output,

ud 9ith auto1atic alar1,

f2 An explosive detector in percentage and lo9er explosive li1it, g2 Alar1 and detector of H'S and S*' if applicable, Article 3'.,( Auto1atic >as !etector 7he auto1atic gas detector should be fitted of audivisual alar1s and adIusted to give indication to t9enty five percent 0'/S2 and seventy(five percent 04/S2 under the explosion li1it,

Article 3';,( "ontingency Plan 9ith respect to the presence of H'S and S*' 7he 1easures that should exist as a precaution against the presence of H'S and S*' should be part of the "ontingency Plan to include at least+ a2 Personnel =no9ledge of e<uip1ent, first aid, alar1s, ventilation and dangers of H'S and S*', b2 Procedure for handling safety e<uip1ent, si1ulation and Personnel training, c2 !epositions identification and responsibilities of Personnel to settle 9hen the concentrations of H'S in the at1osphere reach ten 03%2, t9enty 0'%2 and fifty 0/%2 parts per 1illion, d2 Safe places of concentration and exhaust, e2 Entities to be reported and 1edical services available, Article 3&%,( Finches conditions 7he Finches should have defenses and be 1ar=ed 9ith its per1itted capacity, Li=e9ise, the 1oving co1ponents of engines, pu1ps, co1pressors, drilling dru1, generators, belts, steering 9heels, drive chains, gears, clutches, etc,, shall be covered 9ith ade<uate protective defenses, Article 3&3,( uds circulation syste1 7he uds circulation syste1 should be 1ade at least by+ Uaranda, !egassing, !esander and !esilter, ud pu1ps and air co1pressors shall be e<uipped 9ith safety valves, the sa1e to be inspected annually, "o1ple1entary accessories such as lines, valves, fittings, hoses and others, should be appropriate to resist the pressures of 9or=, effort, te1perature, vibration, etc,, to 9hich 9ill be sub1itted, "HAP7ER 66 FELL !R6LL6#> Article 3&',( !rilling progra1 7he drilling of a Fell should follo9 the progra1 as possible, using the 1ost appropriate techni<ues used in the oil industry for this operation, Article 3&&,( !rilling onitoring 7he 1onitoring of drilling *perations 9ill be borne by the "ontractor and should be done consistently and per1anent 9ith experienced Personnel at all levels, follo9ing a set shift schedule, Article 3&),( Facilities for Personnel 7he Personnel should have facilities for resting, feeding and toilet, in case the location is re<uired to spend the night in the e<uip1ent, Article 3&/,( Reports !uring the drilling of a 9ell to be issued the follo9ing daily reports 9hether those sub1itted by the operators of subcontracted services or special *perations+ a2 !riller report: the sa1e that should consider 9hat happened in the day as co1pared to the string e<uip1ent, che1icals used, operating conditions, personnel at 9or=, detailed distribution of ti1e for each routine operation, special and accidental, the testing Explotions Prevents 08*P2, as 9ell as accidents at 9or=, if any, b2 Record of drilling conditions: each t9enty four 0')2 hours consistently and auto1atically be registered per unit of 1easure perforated at least+ the 9eight on bit, speed and pu1p pressure, speed and tor<ue of the rotary table and the penetration speed,

c2 Lithologic record+ prepared daily and continuously during drilling, based on geological analysis of gutter sa1ples, d2 Report on the conditions of drilling fluid 9ith the conditions of entry and exit of the and consu1ption of 1aterials and che1icals, at least three 0&2 ti1es could, ud

e2 Report of the 1echanic on duty recording the perfor1ance of the 9or=, inspections, 1alfunctions, 9or=ing hours and fluid consu1ed, P7he daily reports 9ill be sent to PERUPE7R* 9hen they be re<uired for that,Q 0O2 0O2 Paragraph inlcuded by Article ' of the Supre1e !ecree #$ %..('%%;(E , published on !ece1ber 3', '%%;, Article 3&5,( Lithologic and electrical profiles 6n the preparation of lithological and electric profiles, the scales to be used should be co1patible and expressed in the deci1al 1etric syste1, 7he Parties 9ill agree to use appropriate scales to the needs of infor1ation of PERUPE7R*, 0O2 0O2 Article a1ended by Article & of the Supre1e !ecree #$ %..('%%;(E , published on !ece1ber 3', '%%;, 9hich reads as follo9+ PArticle 3&5,( Profiles 3&5,3 6n preparing the profiles 0lithology, electrical, a1ong others2, the scales used should be co1patible and expressed in the deci1al 1etric syste1, 7he Parties 9ill agree to use appropriate scales to the needs of infor1ation of PERUPE7R*, 3&5,' After the co1pletion activity, 9ill be sent to PERUPE7R*, 9ithin fifteen 03/2 days, a copy of lithological, electrical and all those profiles that have ta=en to =no9 and evaluate the characteristics of the for1ations traversed and fluid containing, 3&5,& "o1pleted production tests 9ill be sent to PERUPE7R*, 9ithin fifteen 03/2 daysthe results obtained,Q Article 3&4,( Exhibition of the aintenance progra1s 7he e<uip1ents 9ill exhibit per1anently and in a visible place a picture of the 1aintenance progra1 of its 1ain co1ponents that indicate 9or= done and pendants to its total repair 0MoverhaulM2 or replace1ent, Article 3&.,( Record of daily inspections 7here should be a record of daily inspections, including the report referred to in paragraph e2 of Article 3&/ of this Regulation as 9ell as registration of 9ee=ly and 1onthly inspections of the e<uip1ent involved, Article 3&;,( 7esting of 8*P 7he 8*P should be tested to its 9or=ing pressure 9hen installed and at least once every t9o 9ee=s, Additional tests should be perfor1ed 9hen is going to drill a for1ation that presu1es to have high pressure, after co1pletion of the ce1enting and 9hen carrying out a For1ation 7est, the results being recorded in the report referred to paragraph a2 of Article 3&/ of the Regulation, 7he 9or=ing pressure should be 1aintained for at least thirty 0&%2 seconds in the gate 8*P and forty( five 0)/2 seconds in the annular, Article 3)%,( 7raining

Should be a training progra1 for Personnel that includes si1ulations 9ee=ly explosion control, All si1ulations, including those referred to in Article 3';, should be recorded in the daily report of the !riller referred paragraph a2 of Article 3&/, as 9ell as any activity related to the safety progra1, Article 3)3,( 8*P reparations 7he 8*P should be co1pletely chec=ed and repaired in the 9or=shop or factory as reco11ended by the 1anufacturer, Li=e9ise, should have docu1entation certifying this re<uire1ent, Article 3)',( @uadrant Ealve 0Jelly valve2 Fhen passing through areas 9here it is presu1ed the presence of hydrogen sulfide 9ill be available H'S and S*' detectors near the Fell and respiratory e1ergency e<uip1ent in the <uantities and appropriate diversity, A <uadrant valve 0MJelly valve M2 should be per1anently available to the cre9, Article 3)&,( Security !evices 7he security devices should al9ays be operating, Article 3)),( Storage of aterials for ud "he1ical products, 1aterials for ud and ce1ent should be stored in places close to the Fell and protected against its deterioration by natural ele1ents, Article 3)/,( Provision of sufficient additives Additives should be enough to replace the sixty percent 05%S2 of the syste1 increase their 9eight in thirty percent 0&%S2 at least during drilling, ud and to

Article 3)5,( 6nspection of elevators 7he elevators should be visually inspected before each race and be calibrated every six 1onths, Article 3)4,( Safety Regulations in drilling Should co1ply 9ith safety rules for drilling both onshore, rivers, la=es, as offshore: consisting of the follo9ing+ a2 aintain an ade<uate nu1ber of safety signs, posters or ads, placed in conspicuous places of the e<uip1ent in accordance 9ith existing ris=s, b2 Having a cable and e1ergency lo9ering syste1 located bet9een the ledge of the castle of !rilling or Service of the Fells anchored to the e1ban=1ent or Fell platfor1, so as to allo9 free entry and exit of helicopters, c2 Have e<uip1ent and fire protection, d2 Should be installed a lightning rod located in the cro9n of castle, connected to ground by electrical conductors, independent of the structure, in places 9here can present at1ospheric electrical discharges, e2 Re1ovable handrails should be provided in all corridors and platfor1s of the drilling e<uip1ent so as not to hinder the *perations, f2 !ispose of buoys re<uired by the !6"AP6, g2 !ispose of a red haHard light or flashing light, located in the cro9n of the castle, h2 !ispose of first aid and evacuation e<uip1ent,

i2 !ispose the alternative use of protection e<uip1ent against at1ospheric discharges, Article 3).,( AP6 specifications Fith respect to the drilling e<uip1ent and drilling activity, should deploy reco11ended practices by AP6 0latest edition2, or any other institution of international standing, nor1ally used in the oil industry, indicating has no li1itation the follo9ing+ SPE" 38 Specifications for type E belts for oilfields, SPE" /! Specification for drill pipe, SPE" 4 Specification for rotary drilling ele1ents, RP 4A3 Reco11ended practices for testing the friction behavior of the co1ponents of rotary drilling, SPE" 48(33 " Specifications and reco11ended practices for installation, 1aintenance and operation of reciprocating internal co1bustion engines, SPE" 4"(33 F Specifications for the installation, 1aintenance and operation of internal co1bustion engines, SPE" 4F Specifications for chain drive and sproc=ets, SPE" 4> Reco11ended practices for designing strings and operating li1its, SPE" ;A Specifications for steel cables, RP ;8 Reco11ended practices for care and use of steel cables, SPE" 3&A aterial specifications for drilling fluids, RP 3&83 Reco11ended practices to test drilling fluids based 9ater and oil, RP 3&8' Reco11ended practices for testing drilling fluids based on oil, RP 3&E Reco11ended practices for the use of netting and Sieves, RP 3&> Reco11ended practices for the for1 of the drilling fluids report, RP 3&6 Reco11ended practices for laboratory tests of drilling fluids, RP 3&? Reco11ended practices for brines tests, RP 3&J Reco11ended practices for che1ical analysis of 8arite, SPE" 35" Specifications for syste1s to =ill Fells and "ho=es, SPE" 35! Specifications for control syste1s in Fells drilling, RP ); Reco11ended practices for safety in Fells drilling 9ith H,S, RP /& Reco11ended practices for use of 8*F syste1s, RP /) Reco11ended practices industrial safety in Fells drilling, Fhen using e<uip1ent not considered in AP6 regulations, should strictly follo9 the directions for use, 1aintenance and operation of the 1anufacturer, Article 3);,( Faste handling 7o avoid environ1ental pollution, 9aste and rubbish fro1 *perations are handled follo9ing the guidelines established in the Regulations for Environ1ental Protection of Hydrocarbon Activities, Article 3/%,( Restoriaton 7he 1easures to restore the area at the end of this activity 9ill be contained in the Environ1ental anage1ent Plan 0P A2 of the Environ1ental 61pact Assess1ent 0E6A2, "HAP7ER 666 SAFE7C ASPE"7S F*R !R6LL6#> A#! FELL SERE6"E Article 3/3,( About the drilling e<uip1ent and Fells service 7he drilling e<uip1ent and Fells service, shall be provided of+ 3/3,3 A red light or flashing haHard: located in the cro9n of the castle, 3/3,' A cable and e1ergency lo9ering syste1 located bet9een the ledges of the drilling castle and anchored to the e1ban=1ent or Fell platfor1,

3/3,& Fhen drilling in for1ations 1ay have suspected the presence of hydrogen sulfide, 9ill re1ain available detection e<uip1ent and respiratory protection for Personnel, appropriate in type and a1ount, 3/3,) *n drilling to9ers, the e1ergency line for the stapler should be anchored in the ground or platfor1 so as to allo9 free access and exit of the helicopters, 9ithout the danger that they beco1e entangled in it, 3/3,/ Fire Protection E<uip1ent, 3/3,5 Re1ovable handrails in all hall9ays and platfor1 of the drilling e<uip1ent, 9hich does not hinder the *perations, 3/3,4 8eacon re<uired by !6"AP6 or !>7A as the case, 3/3,. At least, 9ith t9o 1ar=ed trac=s of escape for the Personal, incase of e1ergency, 3/3,; etal ladders of the drilling e<uip1ent, should have their steps and railings in good cleaning and 1aintenance, Si1ilarly, should be fixed and 9ithout vibration, Article 3/',( *n the e<uip1ent, castles and 1asts of drilling e<uip1ent, 9or=over and Fells service 7he M9indsM of castles and 1asts of drilling e<uip1ent, 9or=over and Fells service should necessarily be installed before the start of its *perations in the reco11ended <uantity and <uality, 7he good condition of the cables and fasteners ele1ents of M9indsM, should be chec=ed before each use, 7he drilling e<uip1ent anchors 0=illed2 or Fells service, shall be designed for the expected operating voltage, buried in the landfill to a 1ini1u1 of one 1eter and t9enty centi1eters 03,'%2 1 in depth or structure subIect to in the case of offshore or fluvial platfor1s, 7he inspection andLor 1aintenance if necessary, before use, is 1andatory, 7he retained and balances 1echanical tongs, should be anchored properly to the structure e<uip1ent, Article 3/&,( About ud pu1ps and air co1pressors Should be e<uipped 9ith safety valves, the sa1e to be inspected annually, 7he lines, valves, fittings, hoses, etc,, should be appropriate to 9ithstand the pressures of 9or=, effort, te1perature, vibration, etc,to 9hich 9ill be subIect, Article 3/),( First Aid Jit for drilling e<uip1ents and Fells Services distant fro1 the base ca1ps 7he drilling e<uip1ent and Fell Service far fro1 the base ca1ps should have a First Aid Jit 9hich 9ill have the necessary drugs for Personnel care, including antidotes for stings and bites of poisonous ani1als, and against disease by che1icals, Article 3//,( "ontrol, restriction and prohibition of traffic !ue to the ris= and vulnerability of *perations, the "ontractor has the right to control, restrict and prohibit the transit and 1ove1ent of people and vehicles in its specific areas of operation, Article 3/5,( 7ransport and supply to drilling e<uip1ent in the sea, la=es and rivers

7ransport and supply to drilling e<uip1ent by ships at sea, la=es and rivers, are governed by the Regulations of the La9 of "ontrol and Surveillance of ariti1e, River and La=e, approved by Supre1e !ecree # $ %'.(!EL >P and its concurrent regulations, Article 3/4,( Safety 1easures in 9or= of Fells service and overhaul 6n the 9or=s of Fells services and overhaul, including hydraulic fracturing and acidiHing, should ta=e the follo9ing safety 1easures+ 3/4,3 aintain close to the Fell at least three 0&2 fire extinguishers !ry "he1ical Po9der, certified 3'% 8", #7P &/%,%5' and a fire extinguisher on 9heels, 9ith certification of ter1ination of ')% 8", according to #7P &/%,%)& and &/%,%5', 3/4,' !uring fracturing operations, Personnel should stay a9ay fro1 the pu1p lines, 3/4,& For night *perations, should have ade<uate light, 3/4,) 6n preparing 1ixtures 9ith acid, it is i1portant to pour the acid into the 9ater and not 9ater to the acid, Article 3/.,( Activities that re<uire the use of steel cables, chains and ropes 6n activities that involve the use of steel cables, chains and ropes, they should be carefully selected, 7he cables and fastening ele1ents are used as 9ind, should 1eet the follo9ing+ 3/.,3 Each steel cable, rope or chain should be inspected periodically and replaced 9hen necessary, 3/.,' 7o transport heavy drilling e<uip1ent, should use steel cable and not ropes for its sto9age and fixing, 3/.,& 7he Personnel should stay a9ay fro1 suspended loads, even if they are supported by steel cables or chains, 3/.,) !uring the operation of lifting pipeline to the e<uip1ent platfor1, should use a cable as held the pipeline that is lifted, 3/.,/ For handling these ele1ents, Personnel are re<uired to use protective gloves, Article 3/;,( aintenance of the cabins, soil and platfor1s "abins, platfor1s and soil around the e<uip1ent should be =ept free of accu1ulations of *il, any other fuel, 6gnition sources should be eli1inated, Special attention should be paid in the correct application of rules and safety procedures for granting per1its for hot 9or=, Article 35%,( Provision of fire protection e<uip1ent for drilling units, 9or=over and Fells service 7he drilling units, 9or=over and Fells service, shall be provided 9ith fire protection e<uip1ent, according to the follo9ing table of 1ini1u1 re<uire1ent+ U#67 !rilling *verhaul Fells service S9abbing ED7, *# FHEELS 032 3 3 ( ( ED7, P*R7A8LE 0'2 5 & ' '



032 !ry "he1ical Extinguisher 9ith a certificate of ter1ination not less than ')%+8" according to the Peruvian 7echnical Standard 0#7P2 &/%,%)& and &/%,%5' or proven e<uivalent certification, 0'2 !ry "he1ical Extinguisher 9ith a certificate of ter1ination not less than 3'%+8" according to #7P &/%,%)& and #7P &/%,%5' or proven e<uivalent certification, 7he e<uip1ents that are selected should consider a heavy(duty construction and finish in =eeping 9ith the aggressiveness of the environ1ent 9here they are located, 7hese e<uip1ents should be properly 1ar=ed, inspected and 1aintained according to 9hat is stipulated in 7itle 6E of this Regulation, Article 353,( Provision of portable foa1 1echanical syste1s for drilling e<uip1ent 7he drilling e<uip1ent should be e<uipped 9ith a foa1 portable 1echanical syste1 based on 9ater reserve available for nor1al *perations, Article 35',( Re<uire1ents for offshore, la=e and river platfor1s 7he offshore, la=e or river platfor1 should be provided of+ 35',3 A fire fighting syste1 based on 9ater at a rate not less than 3;%% lp1 at 33 =gLc1' pressure 0/%% gp1 to 3/% psig2 9ith e<uip1ents to generate 1echanic foa1, 35',' A nu1ber of fire extinguishers according to the fire control syste1 developed for the 6nstallation, 35',& A sufficient nu1ber of boats or life rafts 9ith capacity for all Personnel assigned to the platfor1, 35',) An ade<uate nu1ber of life Iac=ets that corresponds to the nu1ber of Personnel on the platfor1, 6n all 9or= or activity 9ith ris= of falling into the 9ater is 1andatory to use lifeIac=ets, 35',/ Reflectors or flashing lights and fog sirens, according to 9hat is prescribed by Regulation of the La9 of "ontrol and Surveillance of ariti1e, River and La=e, 35',5 Peripheral handrail of protection for the 1ove1ent of Personnel in the contour of the platfor1, 35',4 A safe device for loading and unloading of Personnel andLor e<uip1ent, 35',. A radio ( telephone syste1 or other syste1 that allo9s co11unication 9ith shore facilities, as 9ell as 9ith the 1ain facility, 7he scale of the operation, distances involved and the ris= analysis, 9ill deter1ine the need to have one or 1ore fast boats, or other 1eans provided 9ith special fire fighting e<uip1ent for cooling, foa1 generation, control of *il spills, 1edical e1ergencies etc,, all of 9hich should be specifically contained in the "ontingency Plan, 35',; "rane or 9inch for cargo handling, e<uip1ent, supplies, etc, 6n the absence of an applicable national rule, 9ill consult and i1ple1ent as appropriate, rules AP6(RP(/4 and AP6(RP(3)>, Article 35&,( Re<uire1ents for 1ariti1e, la=e or river *perations

7o carry out 1ariti1e, la=e or river *perations, shall have in cosinderation the follo9ing+ 35&,3 7he use of life Iac=et is re<uired for the transport and transship1ent operations of Personnel fro1 the boat to the platfor1 andLor doc=, or vice versa, 35&,' 6n areas of rain, 9aterproof clothing should be provided to the Personnel, 35&,& 7he use of safety harness is 1andatory for Personnel 9or=ing on the ledge of the castle, as 9ell as those exposed to falls at different level, 35&,) 7he use of rubber gloves or si1ilar is re<uired for the Personal of the drilling e<uip1ent 9ho 9or=s 9ith che1icals, 35&,/ 6s prohibited the use of gasoline and other fla11able li<uids for cleaning and laundry, 35&,5 All 1achine(starter, should be provided 9ith a safety sign that indicates such condition, 35&,4 7he syste1s, devices or electrical e<uip1ent for offshore platfor1s andLor river should be electrically earthed, Article 35),( Re<uire1ents for the operation of cranes on the platfor1 7he operation of cranes on the platfor1 should be directed by a person trained in that 9or=, Steel cables, anchoring, hoo=s and pulleys that hold the sa1e should be revie9ed regularly, 7he rule RP '! VReco1ended Practices for aintenance *perations *ffshore "ranes Missued by the A1erican Petroleu1 6nstitute should be consulted to that, Article 35/,( About the explosions control All drilling e<uip1ent shall be provided 9ith an explosion control syste1, Fhen the operation re<uires, Fells service e<uip1ent shall also be e<uipped 9ith explosion control syste1s, "HAP7ER 6E FELL "* PLE76*# Article 355,( Follo9 the original For= plan 7he Fell "o1pletion be 1ade by adIusting the original 9or= plan according to the conditions found or encountered during drilling, using the appropriate and safe techni<ues used for this operation in the oil industry, 0O2 0O2 Article a1ended by Article ) of the Supre1e !ecree #$ %..('%%;(E , published on !ece1ber 3', '%%;, 9hich reads as follo9+ PArticle 355,( *f the "o1pletion and 7est of the Fell 355,3 7he Fell "o1pletion, 9ill do adIusting the original For= Plan, according to the conditions 1et or found during drilling, using the appropriate and safe techni<ues used for this operation in the oil industry, 355,' Finished the 9ell drilling, the "ontractor shall infor1 PERUPE7R* the opportunity in 9hich the 9ell 9ill be tested, as 9ell as the For= Plan 9ith the respective adIust1ents, fro1 being the case, 355,& 7he production test of the 9ell 9ill have a 1axi1u1 duration of six 0%52 1onths,

355,) 6f the test re<uires a ti1e longer than six 0%52 1onths shall be considered as a 7est of For1ation or Fell Extended 7est, 9hich 9ill re<uire the approval of the !>H, "ontractors should sub1it their application attaching the follo9ing re<uire1ents+ a, For= Plan and e<uip1ent description for the test and surface facilities, b, 7echnical Iustification regarding the need and duration of the Extended 7est, c, Results fro1 initial tests of the 9ell, d, *thers the !>H dee1ed necessary, Received the re<uest, the !>H 9ill re<uire the appropriate technical opinion to PERUPE7R*, entity 9ithin a 1axi1u1 of fifteen 03/2 business days 9ill evaluate the need for it and the docu1ents sub1itted by the "ontractor, Fithin five 0%/2 business days, of receiving PERUPE7R*Ns opinion, the !>H 9ill issue the corresponding !irectorial Resolution, authoriHing or denying the extended test,Q "*#"*R!A#"E+ S,!, #$ %..('%%;(E , Art, 5

Article 354,( Headers 7he Fellheads should have the follo9ing features+ a2 8e designed for a 9or= pressure higher than the anticipated 1axi1u1 pressure in surface, b2 8e designed for a buc=ling resistance e<ual or higher than that of the upper outer pipe 9hich is connected to, c2 Have connections 9ith 1echanical resistance and pressure range co1patible 9ith the relevant AP6 lifters or to the pipe 9hich 9ill be connected, d2 Have ade<uate resistance to co1pression to support the 9eight of the pipes to be hung, e2 7he lo9er part of the 9ellhead shall be of integral lifter and have at least one side exit to be used 9ith lifter or stud bolts, f2 Lo9 pressure headers, or in Fells of reservoirs 9ith depletaciGn, 1ay be a single body and do not have integral lifter, Article 35.,( "hrist1as 7ree 7he Fells of high pressure or #atural >as should be co1pleted 9ith a "hrist1as 7ree 9ith AP6 specifications, 9ith double aster Ealve capable of supporting the 1axi1u1 pressure expected, 7he botto1 valve re1ains open and the top 9ill be the operational, Article 35;,( aster Ealves aster Ealves should be of the sa1e internal dia1eter of the pipe and should open a hundred percent 03%%S2 0Pfull openQ2, Article 34%,( "onditions that allo9 registration of pressure 7he surface and underground facilities of a co1pleted Fell should allo9 recording pressure through the "asing and of Production, as 9ell as, botto1hole pressure and obtain production records fro1 the Fell, Article 343,( aintenance of surface and underground e<uip1ents

Should be adeopted special 1easures in surface and underground e<uip1ents operation and 1aintenance 9hen there are S*', "*' or H'S, 6n the offshore facilities, should be ta=en additional 1easures according to the surface e<uip1ents, in order to protect the1 fro1 corrosion, Article 34',( AP6 specifications *n the activities set forth in this "hapter, should be used the AP6Ks reco11ended practices 0latest edition2 or any other institution of international standing, nor1ally used in the oil industry+ SPE" 5A Fellheads and valves specifications, SPE" 5! Ealves for flo9 line specifications, SPE" 5FA Fire test for valves and connections specifications, SPE" 5F" Fire test for auto1atic valves specifications, SPE" 5F8 Fire test for connections specifications, RP 3)HReco1ended practices and specifications for instalation, 1aintenance and repair of under9ater safety valves and Headers offshore, SPE" 3)A Safety valves at the botto1 of the Fell specifications, RP 3)8 Reco1ended practices for diseign, instalation, repair and operation of underground valves, RP 3)"Reco1ended practices for analysis, design, instalation and test of surface valves on offshore production platfor1s, SPE" 34! Sub1arine Headers specifications, Article 34&,( Surface "asing, 7he Surface "asing, should be installed to provide safe support to the 8*PKs and to the e<uip1ent to hang fro1 the Header and should be ce1ented in all its full length, Article 34),( 7he Surface "asing in the presence of a<uifers 6n case that the Fell cross any body of fresh9ater that is or 1ay be used in the future as a source of 9ater, the Surface "asing should be installed covering at least t9enty(five 0'/2 1eters belo9 the lo9er li1it of the a<uifer, Article 34/,( "asing *nce the "asing is ce1ented, this should be proved 9ith *nce "asing ce1ented, it should be tested 9ith pressure e<ual to the internal pressure 9hich, according to esti1ates, 9ill be exposed, 7he pressure should not exceed eighty(five percent 0./S2 of 1axi1u1 internal pressure of the casing and should be 1aintained for at least ten 03%2 1inutes, Article 345,( Safety factors in the "asing 7he 1ini1u1 safety factors that are used in the esti1ate of the "asing 9ill be+ 7o the collapse 3,3'/ 7o tension 0connection2 ',%%% 7o tension 0body2 3,'/% 7o internal pressure 3,%%% Article 344,( "asting used !o not allo9 the use of "asing used, unless it is certified by the inspection and testing by an independent specialist co1pany, Article 34.,( Features of the "asing and 7ubing 7he design, characteristics, use and care in handling, transportation and inspection of the "asing, of the 7ubing and flo9line are duly specified by the AP6, For the case of other types of pipes, these conditions should be adIusted to the 1anufacturer 1ini1u1 specifications,

*n the activities set forth in this "hapter, should be used the AP6Ks reco11ended practices 0latest edition2 or any other institution of international standing, nor1ally used in the oil industry+ RP /A/ Reco1ended practices to inspect the ne9 "asing, 7ubing and flo9line, SPE" /8 Specifications for threading, thread 1easure1ent and inspection of "asing, 7ubing and flo9lines, RP /83 Reco1ended practices for thread 1easur1ent and inspection of "asing, 7ubing and flo9lines, RP /"3 Reco1ended practices for "asing, 7ubing caring, 8ULL /"& 8ulletin about for1ulas and calculations for "asing, 7ubing, !rilling and flo9lines properties, RP /"/Reco11ended practices to evaluate "asing and 7ubing connections, SPE" /"7 Specifications for "asing and 7ubing, 0Usual units of 1easure in the United States2, SPE" /"7 Specifications for "asing and 7ubing, 0 etric Units2, Article 34;,( "e1entation !esign 7he "e1entation should be designed to allo9 ade<uate ti1e for pu1ping and setting during operation, as 9ell as providing the necessary tensile strength and co1pression in the Fell, 6f the Fell to ce1ent is in an area 9ith salt 9ater producing for1ations at a depth less than the hydrocarbons producing for1ations, the corresponding design should consider ce1enting the Fell to at least t9o hundred 0'%%2 1eters above the top of the salt 9ater producing for1ation in order to avoid further corrosion proble1s of the "asing, Article 3.%,( Pri1ary "e1enting 7he pri1ary "e1enting should be designed to satisfy any or several of the follo9ing needs+ a2 7o obtain an effective Honal separation and protecting the "asing, b2 7o isolate the "asing of the 8orehole, c2 7o repair the "asing, d2 7o 1ini1iHe the ris= of explosions in areas of high pressure, e2 7o seal lost circulation Hones and deep Hones in anticipation of a deeper drilling, Article 3.3,( S<ueeHe "e1enting 7he s<ueeHe "e1enting should be designed to satisfy any or several of the follo9ing needs+ a2 7o repair the pri1ary "e1enting, b2 7o reduce the high relation >as(*il, or Fater(*il of a for1ation, c2 7o repair the facing, d2 7o abandon or isolate areas, Article 3.',( "o1patibility in the "e1entation 8efore the "e1entation, should be done co1patibility tests 9ith the 9ater to use and to the operative conditions of the Fell, Article 3.&,( Pressure in the "e1entation !uring the "e1enting operation, the ce1ent 1ix and 9or=ing pressures should be registe, Article 3.),( "e1ent stop

7he ce1ent stop of the 6nter1ediate "asing or 7ubing should be no less than t9o hundred 0'%%2 1eters above the area 1ost superficial isolable 0including salt(producing areas2 or on the "asing Shoe above, Article 3./,( Liner hanging casing 0Laina2 A Liner 0Laina2 should be ce1ented in its full length, unless it is proven that this is not technically necessary, Article 3.5,( "e1ent registration After ce1enting the Surface or 6nter1ediate of the "asing, should be carried out a test of the <uality of ce1enting, especially if they havenot been ce1ented in its full length, After ce1enting the "asing of Production or Liner should be ta=en "e1enting records or e<uivalent, Article 3.4,( "onsistency tests 7he consistency tests of the for1ation 0PLea= off testQ2 should be done follo9ing the Fell progra1, Article 3..,( AP6 practices in the "e1enting 6n the "e1enting activities, should be used the AP6Ks reco11ended practices 0latest edition2 or any other institution of international standing, nor1ally used in the oil industry+ SPE" 3%A "e1ents specifications for Fells, SPE" 3%! "entraliHers specifications, RP 3%8 Reco1ended practices for ce1ent tests for Fells, RP 3%F Reco1ended practices to prove "e1enting float e<uip1ent, Article 3.;,( *il or gas burners 7he *il or >as burners should be lit only by re1ote control and should have a cooling syste1 properly tested, Article 3;%,( #ight *perations li1itations !uring the night, if possible, should not begin production tests in Exploratory Fells and neither Sti1ulation *perations should be carried out 0Hydraulic Fracturing, acidiHing, etc,2, unless the "ontractor ensure safe operation, Article 3;3,( Radios situation !uring the Perforating *perations should be =ept off the radio because these 9aves could influence on the firing syste1 of the e<uip1ent, Article 3;',( Radioactive 1aterial 7he use of radioactive 1aterial should be authoriHed by 6PE#, or any entity in its place, should abide by the rules and guidelines established by this agency, Li=e9ise, in case the e<uip1ents recovered fro1 a 9ell 9ere conta1inated 9ith a radioactive substance 1ay not be reused and should be infor1ed *S6#ER> and 6PE# or entities that 1ay replace of this fact, in order to indicate the 1easures to be ta=en for9ard, "HAP7ER E FELL A8A#!*# E#7 Article 3;&,( Approval of PERUPE7R* 7he per1anent Abandon1ent Plan of the Fells shall be approved by PERUPE7R*, 9hich should be under the direct supervision of the operator or its authoriHed representative, 9ho 1ay not

be an e1ployee of the service co1pany involved in the Fells Abandon1ent, !irect supervision 1eans the supervisorKs presence in the Fell during the i1ple1entation of the afore1entioned plan, 7he unconventional abandon1ent procedures, according to the particular realities of each case, should be approved by PERUPE7R*, Article 3;),( Abandon1ent plugs 7he Fell should be abandoned 9ith ce1ent or 1echanical Plugs, insulating those areas 9here the coating has not been 1ade or 9here there could be fluid, 6n cases that for reasons of operational difficulty 9ere not feasible carry out the Abandon1ent Plan as 1entioned in the follo9ing Articles, the operator 1ay 1a=e the plan referred to using the best and appropriate techni<ues and procedures used in industry, and should report and Iustify pro1ptly to PERUPE7R* 9ith copy to *S6#ER> about that decision, Article 3;/,( Additional plugs Fell 1ay re<uire additional Plugs to cover or contain any productive horiHon or to separate a layer of 9ater, depending on the <uality of 9ater or hydrostatic pressures differ sufficiently to Iustify this separation, 7he proof of the Plugs and Rece1entation 1ay be re<uired if necessary to ensure that the Fell 9ill not da1age the natural resource, Article 3;5,( Plugging open hole under the liner Fhere there open hole under the inner1ost lining should be placed a ce1ent Plug extending fifty 0/%2 1eters above and belo9 the Shoe, 6f the for1ation conditions hinder this procedure, 9ill be placed a echanical Plug in the botto1 of the "asing of t9enty 0'%2 1eters of ce1ent on the Plug, Article 3;4,( 6solation of the perforated area Perforated areas as possible should be ce1ented under pressure and isolated 9ith Plugs, 6f it is not possible "e1entation at pressure due to the possibility of causing hydraulic fracturing, 9ill be placed a ce1ent plug covering fifty 0/%2 1eters above and belo9 the perforated area or above the closer Plug, if the distance is less than fifty 0/%2 1eters, PERUPE7R* 1ay approve the replace1ent of the Plug 0s2 of ce1ent, place1ent of one or 1ore Plugs bridge of 1etal, to be placed 9ithin the "asing and i11ediately on perforated intervals or certain depth, depending on the pressure levels, flo9 or reserves of Hydrocarbons, 6n the case of horiHontal Fell Abandon1ent, the Plug should isolate the productive Hone covering fifty 0/%2 1eters above and possibly fifty 0/%2 1eters belo9 the perforated area, or fifty 0/%2 1eters above the "asing shoe production if it is placed on the top of the productive horiHon, PERUPE7R* in coordination 9ith the *perator 9ill deter1ine if additional ce1ent Plugs or bridge Plugs are re<uired, Article 3;.,( Liners Abandon1ent A Liner 9ill be abandoned 9ith a ce1ent Plug that covers fifty 0/%2 1eters above and belo9 its point of suspension, Article 3;;,( Perforation and ce1enting for Abandon1ent 6n case that the top of ce1ent behind the "asing does not cover one hundred 03%%2 1eters above the productive area, the "asing 9ill be perforated hundred 03%%2 1eters above the productive area and ce1ented at pressure 9ith a colu1n that covers one hundred 03%%2 additional 1eters in the annular space, Article '%%,( Plugs in cases of per1anent Abandon1ent 6n case of per1anent Abandon1ent 9ill be placed a last ce1ent Plug fro1 t9o hundred 0'%%2 1eters depth to the surface,

6n cases that for reasons of proven operational difficulty is not possible to reach the t9o hundred 0'%%2 1eters, shall be placed a ce1ent plug fro1 the depth found, to the surface, Fhen using a 1echanical plug, it should be found sat at the found depth, Article '%3,( Spacing 7he spaces bet9een the Plugs and to the surface should be filled of fluids of non(corrosive characteristics, Article '%',( Fater 9ell 6f the Fell for abandon1ent had found a situation described in Article 34) of this Regulation, the Fell 9ill enable to produce 9ater, plugged to the base of the a<uifer, 6ts subse<uent perforation and operation should be coordinated by the entities responsible for the source of 9ater and therefore no longer correspond to a Petroleu1 Activity, Article '%&,( Per1anent Abandon1ent 6n case of Per1anent Abandon1ent, the Fellhead should be 1ar=ed 9ith the nu1ber of the Fell, 6n case recovery of the Fellhead, should be obtained the corresponding authoriHation fro1 PERUPE7R*, situation 9here the "asing shall be cut 1echanically, 6n this case, instead of the header, should be a steel rod of t9o 0'2 1eters high above the surface level 9ith the Fell nu1ber 9elded to the plate that covers the Fell, 7he canteen should be co1pleted and the location 9ill be restored according to the P A of the E6A or to the corresponding environ1ental 1anage1ent tool, Article '%),( Abandon1ent of the Area 6n the case that Fell Abandon1ent 1eans Abandon1ent of the Area, shall apply Article /5 of the Regulations for Environ1ental Protection in Hydrocarbon Activities, 6f not involve the Abandon1ent of the area, the Fells Abandon1ent shall be governed according to the guidelines specified in this "hapter, Article '%/,( *bligatory abandon1ent 7he "ontractor is responsible for the per1anent Abandon1ent of inactive Fells drilled during develop1ent of the "ontract, unless that the "ontract, appendixes or other agree1ents bet9een the parties, stipulating different obligations, Also responsible for the per1anent Abandon1ent of Active Fells, that for reasons of safety, environ1ental or econo1ic do not operate in the future, Article '%5,( Faculty to activate Fells 7he "ontractor 1ay intervene and incorporate into their *perations the drilled Fells and abandoned on a te1porary or per1anent by previous operators in the area, 6n the case the intervention deter1ines the inconvenience to consider the Fell as Active Fell, it should be abandoned in accordance 9ith the provisions of this Regulation, Article '%4,( Fell classification List 7he "ontractor shall sub1it to PERUPE7R* 9ith copy to *S6#ER>, a list regarding inactive Fells 0closed, te1porarily abandoned, per1anently abandoned2 containing for each of the1, to have it registered, the follo9ing infor1ation+ ( Location coordinates, ( "o1pletion updated diagra1, ( Production of fluids i11ediately before the closure or abandon1ent, 7o this infor1ation 9ill be added its esti1ate of+ ( Feasibility of future rehabilitation,

( Reference to population centers andLor hu1an settle1ents closest, ( Esti1ated date of abandon1ent, for the next year, of Fells that have lost their status as Active Fell during the ter1 of the contract and 9hich situation Iustifies per1anent abandon1ent, 6f there are changes, these 9ill be reported annually in ?une, 767LE E PR*!U"76*# "HAP7ER 6 >E#ERAL PR*!U"76*# Article '%.,( Ade<uacy Regi1e "ontractors 9ho are in a stage of Exploitation, operating facilities that are not ade<uate to this Regulation, 1ay regulariHe this situation as follo9s+ a2 Ade<uating their *perations or facilities to this Regulation, after that the operators present a diagnosis of each of their facilities and on that basis and the econo1y of each bloc= be prepared and approved the progra1 of ade<uacy of facilities 9ithin a period 9ith the reality of each bloc=, b2 ?ustifying by report to *S6#ER> the reasons 9hy can not be possible this ade<uacy, for each one of the cases, *S6#ER> 9ill evaluate the "ontractorNs Iustifications and approve the1, if applicable or 1a=ing =no9n the 1easures to be adopted, 6f the "ontractor does not agree 9ith the pronounce1ent of *S6#ER>, 1ay apply to the corresponding ad1inistrative appeal to *S6#ER>, Article '%;,( axi1u1 Efficient Recovery 0 ER2 7he "ontractor shall produce the Fells during the Exploitation phase, so as to obtain the axi1u1 Efficient Recovery, ta=ing into account the principles of conservation and proper 1anage1ent of Hydrocarbon Reserves, For that, should be evaluated productive perfor1ance of the Reservoirs in order to deter1ine in a short ti1e the characteristics of the producing for1ation, its unifor1ity, continuity and structural configuration, as 9ell as the properties of the fluid and its production syste1 1ore appropriate, according to the conditions and structural location of Fells, 7he results of these evaluations should be co11unicated to PERUPE7R* 9ith copy to *S6#ER>, 7he "ontractor 1ay conduct its *perations using the techni<ues that it dee1s 1ost appropriate, 9hich shall be consistent 9ith good oil industry practices, that lead to 1aintain the productivity of their reservoirs, and can perfor1 6nIection *perations of any fluid properly selected such as nitrogen, poly1ers, #atural >as associate or #ot Associate, 9hich is produced by itself or by a third party and is not 1ar=eted, Li=e9ise, these *perations 1ay be conducted as part of 61proved Recovery proIects in order to increase the recovery factor reservoirs, Article '3%,( 7echnical Evaluation Report Every t9o 0'2 years, in ?anuary, after five 0/2 years of the beginning of the Production of a Reservoir, the "ontractor shall sub1it to PERUPE7R* 9ith copy to *S6#ER>, a technical evaluation report in 9hich sho9s that the Fells have been producing at levels of ER, or other9ise, shall propose actions to those levels obtained during the next evaluation period, Article '33,( 61pair1ent of Proved Reserves by deficient operation

6f a Fell or >roup of Fells are being operated in conditions that cause i1pair1ent in the Proved Reserves, PERUPE7R* 1ay as= that the "ontractor corrects the situation andLor Iustifies appropriately, 7his re<uest should be infor1ed to *S6#ER>, 7he "ontractor 9ill correct the non( co1pliance giving beginning to 1easures necessary for the corresponding correction, 9ithin sixty 05%2 days of receiving the co11unication, 9hich 9ill be carried out continuously and diligently, 6n case of continued the non(co1pliance, *S6#ER> 9ill apply the appropriate 1easures, Article '3',( 61pair1ent of Proved Reserves for deficient operation and closure of Fell or Fells by *S6#ER> *S6#ER> 1ay, according to the provisions of the Article above, instruct the "ontractor the closing of these Fells or part thereof that is affecting Proved Reserves, until it is corrected or the situation Iustified, 6f the "ontractor does not agree 1ay apply to *S6#ER> the corresponding ad1inistrative appeal, Article '3&,( Fell spacing 7he spacing bet9een the Fells 9ill be deter1ined by the proper characteristics of the reservoir, by drive 1echanis1 itself, by type of 9ell to be drilled and the econo1ically recoverable volu1e of production, Article '3),( Exception 6f during the develop1ent of the established order of Fells spacing do not produce to ER, or physical i1pair1ent exists for their drilling, 1ay consider lo9er spacing, but carrying out the corresponding evaluation, Article '3/,( Unification ay be drilled Fells less than one hundred 03%%2 1eters fro1 the edge of the "ontract Area or do9nhole in the condition indicated above, if the Reservoir is co11on to t9o neighboring "ontractors and 9hether they have entered into an agree1ent to unify the !evelop1ent of the co11on field, according to Article &' of the La9, Article '35,( "onstruction of facilities Fhen a "ontractor proIects to occupy a land area of public or private property for the construction of facilities, should follo9 the procedure laid do9n in 7itle E66 of this Regulation, 6f build a Production 8attery, tan= far1, pu1ping or co1pression station or expansion, should re<uest to *S6#ER> a favorable report before construction begins, 7he infor1ation that sub1its should include the planes necessary to define the proIect and indicate that it 1eets the rules that are e1ployed in the construction of Production 8atteries, tan= far1, pu1ping or co1pression station and of their e<uip1ents, 7he 1odifications of Production 8atteries, tan= far1, pu1ping or co1pression station, that represent an expansion of activities under the Regulation for Environ1ental Protection in Hydrocarbon Activities, shall be sub1itted to !>AAE for their approval before starting the construction, 7he infor1ation that the "ontractor sub1its should include the neccesary planes to define the proIect and indicate that it 1eets the rules that are e1ployed in the construction of Production 8atteries, tan= far1, pu1ping or co1pression station and of their e<uip1ents, 7he pipes out of the production 8atteries, 7an= Far1, Pu1ping or "o1pression Stations, should be installed according to the Safety Rules set out in Appendix 3 of the Regulation of Hydrocarbons 7ransportation by Pipelines or in the rule replacing it, Article '34,( aintenance of Production Facilities 7he active Production facilities 9ill be 1aintained in good condition, preventing lea=s or escapes of produced fluids, 7he pipes and e<uip1ent should be painted and signaled so as to

identify the type of fluid, 6n its 1aintenance, cleaning should be per1anent and herbs should be eli1inated, as 9ell as fla11able 9aste 0paper, 9ood, rags, etc,2, 7he inactive Production Facilities 9ill be re1oved, restoring the area that 9as occupied, "HAP7ER 66 PR*!U"76*# E@U6P E#7S Article '3.,( Headers 7he Headers should have pressure controlling ele1ents to regulate Fell pressure in proportion to design of flo9 lines and facilities and have installed all its co1ponents, Fhen the pipe gets off its SSU should be installed, Article '3;,( Fell in a<uatic environ1ent 7he fluen Fell located in the sea, river, la=e or s9a1p, should have a safety valve at thirty 0&%2 1eters under the sea, river, la=e or s9a1p, that closes auto1atically in case occurs uncontrolled in the Fellhead, Article ''%,( High pressure 7he high pressure flo9 of the pipeline 01ore than &%% psig2 shall be posted safety 9arnings or signs at all crossings of public roads, Article ''3,( Fluid 6nIection 7he inIection, except for s9eet gas or pure 9ater, should be progra11ed to do it nor1ally by the 7ubbing, 6n these cases, a pac=er should settler on the operative for1ation and the space bet9een the 7ubbing and the "asing should be filled 9ith anticorrosive fluid, 7he exceptions to this rule should be technically Iustified, Article ''',( Artificial Survey E<uip1ents 7he artificial survey e<uip1ents should have the neccesary capacity to produce to the ER the Fells fluid, 9ithout any da1age to other facilities, Reservoir or to the sa1e Fell, 7he active Production e<uip1ents, 9ill be 1antained in good conditions, 9ith their 1oving parts properly protected 9ith safety guards, Article ''&,( *perating 8alance of the pu1ping units 7he operating balance of the 1echanical pu1ping units should be verified by dyna1o1etric tests or other 1eans at least once a year, although the pu1ping efficiency 9as acceptable, Article ''),( Electric engines For 1echanical pu1ping units should prefer the use of electric engines instead of the internal co1bustion: unless the conditions do not allo9 it, Article ''/,( AP6 practices 6n the activities established in this "hapter, should be used the AP6Ks reco11ended practices 0latest edition2 or any other institution of international standing, nor1ally used in the oil industry, SPE" 38 Specifications for belts in PEQ,

RP 'SJ Reco11ended practices for design, analysis and 1aintenance of 1ooring syste1s of the floating production, SPE" /L Specifications for flo9 pipes,

RP /L"L/L! SPE" 5H RP 33AR SPE" 33AD SPE" 338 RP 338R SPE" 33E RP 33ER RP 33>

Reco1ended practices for flo9 pies "RA, Plugs, connectors and s9ivels specifications, Reco1ended practices for the use and care of subsoil pu1ps, Subsoil pu1ps and connectors specifications, Suc=er rods and connectors specifications, Reco1ended practices for care and handling of suc=er rods, Specifications for the 1echanical pu1ping unit, Reco1ended practices for defenses of 1echanical pu1ping units, Reco1ended practices for installation and lubrication of 1echanical pu1ping units,

RP 33L Reco1ended practices for designs and conventional 1echanical pu1ping units calculations, P 33S Reco11ended practices for operation, 1anteinance and detection of faults in the facilities 8ES, RP 33S3 RP 33S' RP 33S& RP 33S) RP 33S/ SPE" 33E3 RP 33E/ RP 33E5 RP 33E4 SPE" 3/HR RP 3/LA SPE" 3/LE SPE" 3/LP SPE" 3/LR Reco11ended practices for the asse1bly report of 8ES, Reco11ended practices for 8ES test, Reco11ended practices for 8ES facilities, Reco11ended practices for 8ES facilities selection, Reco11ended practices for sub1erged cable syste1s, Specifications for valves and >as Lift orifices, Reco11ended practices for operations and 1antainance in >as Lift facilities, Reco11ended practices to design the >as Lift continue, Reco1ended practices to repair and test of the >as Lift valves, Specifications of flo9 pipe fiberglass for High pressure, Reco11ended practices for resin pipe care, Specifications for polyethylene pipes, Specifications for ther1oplastic pipe 0PE" and "PE"2, Specifications for fiberglass pipes for lo9 pressure,

Article ''5,( Production 8attery !esign 7he Production 8attery should be designed according to the characteristics of the fluid 1ixture, and to the volu1es produced fro1 #atural and Li<uids >as to be collected,

Article ''4,( Separation syste1 7he separation syste1 of a 8attery should be provided of a 1easure syste1 that allo9s to =no9 both total volu1e and individual of #atural and Li<uids >as fro1 Fells connected there, Article ''.,( Separators 7he separators should be the appropriate for the operational conditions that are expected, Should have control ele1ents to avoid its flooding by li<uid and excessive pressure, 6ts safety valves should be calibrated for a pressure not higher than the separators design pressure and should be inspected according to the 1anufacturersN especifications, Article '';,( Safety valve 7he safety valves should have individual escapes pointing to places that no haHard or be connected to co11on alleviation syste1s of sufficient capacity, 7he rupture discs should have vertical do9nload and should not have any li1itation, Article '&%,( 7an=s in batteries 7he e<uip1ents, specially the Production 8atteries tan=s, should be 1ade of 1aterial suitable to the corrosive fluid characteristics, 7he tan=s should have the necessary corrosion protection and have a co11on drain to a pool of recovery or burning, located not less than fifty 0/%2 1eters a9ay, should have gates for its cleaning and 1easure1ent facilities, 7he use of portable incinerators or refractory 1aterial, 9ill depend on the volu1e to be incinerated, Article '&3,( !istances 7he Production batteries should not be located less than fifty 0/%2 1eters of the public roads and should have identification sign, Article '&',( "apacities 7he 1ini1u1 storage capacity of 8atteries Production should be at least one 032 day of production of 9ells associated 9ith it, 7an=s can have level controls built(in for auto1atic e1ptying, Article '&&,( Retaining 9alls Retaining 9alls should contain one hundred and ten percent 033%S2 of the largest tan= volu1e, 7he 9all should have a drain out 9ith a built(in valve, 6f for exceptional reasons not to fulfill the provisions of this Article, the "ontractor shall re<uest the respective exe1ption to *S6#ER> according to Article '%. of this Regulation, 6n the collection points of crude oil 9ith a capacity up to &%% bbl, not is necessary to build retaining 9alls, Article '&),( 7an=s 6f the tan=s are used to storage the Li<uid Hydrocarbons, the "ontractor shall observe the provisions of the Safety Regulation for the Storage of Hydrocarbons or the one that replaces it, Article '&/,( #atural >as 8urner 7he Production 8attery, located 9here according to the Article ')) of this Regulation be neccesary burn #atural >as, should have a burner 9ith the follo9ing basic characteristics+ a2 7o be located at a distance no less than fifty 0/%2 1eters of any installation on the ground, sea or la=e platfor1s, b2 7o be of height and sufficient di1ensions to burn the possible volu1e to be handled, c2 7o have defenses that =eep the 9ind off the fla1es,

d2 7o have an auto1atic ignition syste1, 6f for exceptional reasons 1ay not co1ply 9ith this Article, or could perfor1 the 6nIection or Re(inIection *perations to those refered in the second paragraph of Article ')) of this Regulation, the "ontractor shall re<uest to *S6#ER> the appropriate exoneration according to Article '%. of this Regulation, Article '&5,( Protection fences Production facilities located on land should be protected by 9ire 1esh and doors loc=ed if they are located 9ithin a distance of eight hundred 0.%%2 1eters fro1 inhabited, rural or recreation areas, 6f the batteries are far a9ay, and local conditions 9arrant, they should have 9ire fence and entrance to protect livestoc= and fauna existing, Article '&4,( Electrical installations Electric installations 9ill be 1ade according to the last version of the rule #FPA(4% or e<uivalents, 7he areas classification 9ill be according to the rule AP6 RP(/%% or e<uivalent, 7he installations relating to static electricity and grounding shall co1ply 9ith the latest version of the rule #FPA(44 or e<uivalents, Article '&.,( AP6 applications 6n addition to the relation of AP6 practices laid do9n in Article ''/, in the activities set forth in this "hapter, shall ta=e into consideration the reco11ended practices by AP6 0latest edition2, or any other institution of international standing, nor1ally used in the oil industry, such as+ SPE" 3'8 SPE" 3'! SPE" 3'F Specifications of bolted tan=s for production, Specifications of 9elded tan=s in field for production, Specifications of 9elded tan=s in tent for production,

SPE" 3'>!U Specifications of >lycol dehydration units for gas, SPE" 3'? SPE" 3'J SPE" 3'L RP 3'# SPE" 3'P Separators specifications, Specifications of oil indirect heaters in the field, Specifications of e1ulsion treaters, Reco11ended practices for testing, operation and 1aintenance of burner firebox, Specifications for fiberglass tan=s,

RP 3'R3 Reco1ended practices for inspection, installation, 1aintenance and operation of tan=s in production service, RP 3)E production, Reco1ended practices for designs of pipelines installation syste1s for offshore

RP 3)F Reco1ended practices ofr design and installation of electrical syste1s for offshore production platfor1s, Article '&;,( #atural >as Plants Security 1easures to be ta=en by the "ontractor in the Processing Plants, "ryogenic Plants and Petroche1ical Plants, are contained in Regulation of Standards for Hydrocarbons Refining and Processing, or replacing it,

"HAP7ER 666 PR*!U"76*# *PERA76*#S Article ')%,( Faste 7he "ontractor 9ill ta=e appropriate 1easures to prevent 9aste of produced Hydrocarbons, Article ')3,( #atural >as "ollecting 0O2 0O27ext replaced by Article / of the Supre1e !ecree #- %).('%%;(E , published on ?une ;, '%%;, 9hich reads as follo9s+ PArticle ')3,( #atural >as and *il "ollectingQ Fells should not be operated 9ith the "asing valve opened at air, #atural gas should be collected, used or sent to 8atteries Production, PFells, 9hich extraction syste1s is via the MS9abM should be operated as follo9s+ a, Fhen they are not intervened, linings and pipes should be closed, 8efore their intervention, Fells should open ta=ing the safety 1easures and environ1ental protection that the case 1erits, b, Alternatively, Fells can be connected and open to flo9 lines that collect >as for 8atteries Production, c, 7hose Fells of MS9abM that 9hen closing build up pressure e<ual or higher than /% pounds per s<uare inch of pressure 0psi2, bet9een an intervention and another, should be connected and per1anently open to flo9 lines that collect >as for 8atteries Production,Q 0O2 0O2 Paragraph included by the Article / of the Supre1e !ecree # - %).('%%;(E , published on ?une ;, '%%;, Article ')',( Prohibition of s1o=ing S1o=ing should no be allo9ed 9ithin one hundred 03%%2 1eters fro1 the Fell, Separators, 7an=s and other unprotected potential sources of co1bustible gas, 6t is forbidden to open fire using less than one hundred 03%%2 1eters fro1 a Fell, Article ')&,( "ondensate recovery in various processes 7he recovery "ondensate at any co1pression or li<uids recovery process, should be incorporated into li<uid Hydrocarbons syste1, if is not used or co11ercialiHed, Article ')),( #atural >as use #atural gas use is deter1ined in Article )) of the La9 and the provisions on the control of air pollution that are contained in the Regulation for Environ1ental Protection in Hydrocarbon Activities, #atural >as 1ay be 6nIected or ReinIected to o9n Reservoirs or fro1 other "ontractor that 1eet the appropriate specifications for each case, 6nIection or Re(inIection *perations 1ay be done even after having extracted fro1 #atural >as li<uids that 1ay contain and for any of the follo9ing specific uses+ a2 aintenance of the pressure of these Reservoirs, b2 Allo9 secondary recovery fro1 these Reservoirs, c2 #atural >as Storage, 9hich at the ti1e of its production has not co1ercial use,

d2 For any other use that constitutes practice in the oil industry, Eent andLor burned progra1s 1ade according to the productive capacity of each battery 9ill be presented to PERUPE7R*, for its approval, 7hese progra1s in turn should be co11unicated to *S6#ER>, 0O2 0O2 Article a1ended by Article 5 of the Supre1e !ecree #- %).('%%;(E , published on ?une %;, '%%;, 9hich reads as follo9+ PArticle ')),( #atural >as use #atural >as use is deter1ined in Article )) of the La9, 9ithout preIudice to the "ontractorKs obligation to co1ply 9ith existing legislation on environ1ental issues, #atural >as that is not sold during a period valorisation 1ay be assigned to the follo9ing purposes, 9ithin or outside the "ontract Area, 9ithout i1plication in the deter1ination of retribution or royalty+ 3, Used in the "ontractorsN operations, in accordance 9ith Article )% of La9 #$ '5''3, *rganic Hydrocarbons La9, ', ReinIecting the reservoir, &, Storaged in natural reservoirs, ), 8urned, in accordance 9ith Article )) of La9 #$ '5''3, *rganic Hydrocarbons La9, 7he reinIection, storage andLor burned of #atural >as shall be done, even after that be processed andLor extracted its li<uids inside or outisde of the "ontract Area, 8urned Progra1s carried out to test Fells and according to the productive capacity of each Fell, battery andLor platfor1 9ill be presented to the Hydrocarbons >eneral !irection 0!>H2 for approval at least fifteen 03/2 business days before the Fell testing, 7he !>H should aprove the1 or if the case, sub1it the observations that dee1s appropriate in a period not exceeding three 0%&2 business days 9hich should be raised by the "ontractor 9ithin a period not exceeding three 0%&2 business days, 6n this last case, the !>H 9ill have a ter1 of three 0%&2 business days to issue the corresponding Resolution, *nce approved such progra1s, the "ontractor shall sub1it to *S6#ER> 6# at least five 0%/2 business days prior to the burning operation,Q Article ')/,( #atural >as 8urning 6n case of not having obtained approval to burn #atural >as, referred to in Article )) of the La9, the "ontractor 1ay do it in the cases of Fells evaluation and of proven e1ergency, subIect to account for this fact i11ediately to the *S6#ER> and PERUPE7R*, 6n any case, proceed as provided in the Regulation for Environ1ental Protection in Hydrocarbon Activities, 0O2 0O2Article repealed by the Article 3% of the Supre1e !ecree #- %).('%%;(E , published on ?une %;, '%%;, Article ')5,( Production regi1es 7he 1axi1u1 production regi1es that 1ay produce Hydrocarbons Reservoirs are li1ited by the follo9ing+

a2 6n *il Reservoirs 9ill not allo9 to produce Hydrocarbons fro1 Fells that produce 9ith >*R higher than five thousand 0/ %%%2 feet&Lbbl, 6n this situation the "ontractor 9ill be obliged to close those Fells, b2 6n case be expedient, 1ay be produce Petroleu1 Reservoirs 9ith Fells of >*R 1ore than five thousand 0/ %%%2 feet&Lbbl,, if there is installed a collection syste1 of #atural >as and Re( inIection of the sa1e, that 1ay lead to an outco1e in 9hich the total net >*R in the reservoir does not exceed five thousand 0/ %%%2 feet&Lbbl, 7he "ontractor should include this plan in its annual 9or= progr1a to be sub1itted and Iustified to PERUPE7R*, 9ith the favourable opiniGn of the *S6#ER>, Fhen the *il Reservoirs reach to a stage of their productive life that can not be produced according to the li1itation 1entioned in subsection b2 above, 9ill produce at total net levels >*R 1ore than five thousand 0/ %%%2 ft& L bbl, as long as is used all #atural >as produced, For this =ind of production is not allo9ed the burning neither venting of #atural >as, in this situation the "ontractor shall sub1it for approval to *S6#ER>, technical and econo1ic study that Iustifies, 6n #on Associated #atural >as Reservoirs, before starting production, the "ontractor shall sub1it to PERUPE7R* 9ith copy to *S6#ER>, for its approval, a !evelop1ent progra1, 6n this progra1 9ill indicate the possible recovery of li<uids and inIection volu1es of #atural >as, in o9n or third party Reservoirs as provided in the second paragraph of Article '%; of this Regulation, if this 9ere the case, 6f after the start of production of the originally esti1ated reservoir conditions have changed or if there is another e<ually i1portant reason, the "ontractor 1ay sub1it to PERUPE7R* for its approval, 9ith the favorable opinion of *S6#ER>, changes 1ay be necessary to introduce into its Field !evelop1ent progra1, 7he oil reservoirs in re1ote areas andLor li1ited production, 9hich productions are inter1ittent, 1ay be produced 9ith >*R higher than five thousand 0/ %%%2 ft&Lbbl, For this type of production, the "ontractor shall sub1it to PERUPE7R* a technical econo1ic study that Iustifies it, Article ')4,( Light crude 1anage1ent 7he follo9ing 1easures should apply to tan=s that collect light oil in production batteries, to prevent loss by evaporation+ a2 Fluids should be deposited at the lo9est possible te1perature, b2 7he tan=s should be light colored, c2 Should be preferred to use tan=s of lo9(capacity, the highest and of the lo9est dia1eter possible, d2 6nco1e pipes, inside the tan=, should be designed to avoid splashing the fluid, Should be sub1erged and be slotted to help the exit of the #atural >as, e2 7he gates should =eep closed and the tan=s e<ualiHer, f2 Should have a visual 1easuring on the outside, g2 Should have a co11on line of collecting of vapor to recover light li<uids or direct use as fuel, Article ').,( "ollection and 6nIection Pipe Syste1s 7he collection and 6nIection Pipe syste1s, 9ill be built according to the Regulation for Hydrocarbon 7ransportation by Pipelines, For lines to Fells authoriHation 9ill not re<uire, Article ');,( aintenance progra1

7here should be a 1aintenance progra1, inspection and calibration of the instru1ents of the battery 01eters, recorders, control valves and safety2, and a Separators cleaning progra1 and 7an=s, Additionally, according to AP6 standards, 1aintenance of pressure relief valves 0safety2 should be done every t9o 0'2 years, unless the 1anufacturerKs 1anual reco11ends a different procedure, Article '/%,( Fell production record 7he "ontractor 9ill have for each Fell a record of production fluid, as 9ell as the instruction of services and events carried out during its productive life, Article '/3,( Fells 7est 7he Fells 9ill be testing in the Production 8atteries as often as posible, according to its relative i1portance in the syste1, 7he test 9ill last the necessary to be representative of the characteristics of the fluid produced by the Fell, 6t is reco11ended to 1a=e three 0&2 do9nhole per 1onth, Article '/',( Production for 8attery Record 6n a si1ilar 9ay to the Fells, the "ontractor 9ill ta=e a record for each Production 8attery and of the total Production of the "ontract Area, Article '/&,( FiscaliHed Production Record 7he "ontractor 9ill ta=e a record of the FiscaliHed Hydrocarbons Production and of the field Production, 7he reasons of the diversion should be explained in the onthly Production report, Article '/),( Reliability of e<uip1ent in the 8attery 6n order to preserve the integrity, reliability and security of e<uip1ent and 1easure1ent in Production 8atteries, the "ontractor shall ta=e the follo9ing 1ini1u1 actions+ a2 7o =eep the 1eter in good operative conditions, b2 7o protect the 1eters properly of the possible interference of unauthoriHed persons and the environ1ent, c2 7o install valves in the Pby(passQ, 9hen this exists in the 1eters, that seals in an effective 9ay the passing of fluid, d2 Fhen the Pby(passQ is opened should register this operation in the 1eter report, e2 Should provide a 9ay of 1easuring or recording of the te1perature for inclusion to the 1easure1ent syste1, f2 Should exist a procedure to esti1ate in a reasonable 9ay the #atural >as volu1enes do not 1easure by accidental deterioration of their 1eters, Article '//,( 6nstallation of orifice 1eters 7he orifice 1eter installation shall be in accordance 9ith the AP6( P S standards, as the referenced Article '.. of this Regulation, Report #$ & of A>A, Article '/5,( 61proved Recovery 7he 61proved Recovery *perations 1ay be carried out by inIecting 9ater, poly1ers, nitrogen, #atural >as or any fluid that is appropriate according to oil industry practices, 6f in the Hydrocarbons Exploitation *perations are re<uired large a1ounts of 9ater for 61proved Recovery proIects, the operator should based on the follo9ing criteria+ a2 7o use preferably the sa1e for1ation 9ater or sea 9ater,

b2 ay use fresh 9ater of the underground or surface sources only 9hen they have per1ission of the "o1petent Authority on ter1s of 9ater resources, "opy of the authoriHation should be sent to PERUPE7R* and to *S6#ER> by the "ontractor, Article '/4,( Secondary Recovery ProIects W 6nIection Syste1 6f the "ontractor 9ishes to 1a=e a Secondary Recovery proIect should infor1 PERUPE7R*, 7he 6nIection Syste1 should fill unless the follo9ing re<ueri1ents+ a2 "ollection Syste1, 9hich is co1posed of an independent ade<uate fluid supply source, of reprocessing of produced or 1ixed 9ater, b2 A treat1ent plant that suits the fluid for inIection conditions counting 9ith controls, containers, pu1ps, devel, filters and the necessary che1ical treat1ent, c2 Fluid storage facilities for nor1al operation and e1ergency, d2 Eolu1e 6nIection syste1 of adapted fluid to proIect, co1patible 9ith the for1ation 9here 9ill be inIected and of corrosive controlled, 1ultiple 6nIections, control, pu1ps, Fellheads and Fells, e2 "orresponding 1aintenance plans, #atural >as 6nIection *perations are not subIected to the re<uire1ents set forth in paragraphs a2 and c2 of this Article, Article '/.,( Fells Service Fhen in a Fell, is necessary to carry out a repair Iob, Fells Service, Recondition or For=over, 9ill be planned 9or= based on the proble1 found, conditions that 9ant to change and behavior of neighboring Fells and their influence on the proIected 9or=, Article '/;,( Recondition or For=over For=s Fhen a "ontractor needs to perfor1 Recondition or For=over 9or=s to Fells that are located in or on the Production Platfor1s, should tell *S6#ER>, prior to co11encing the activity, Article '5%,( Fells Service in the facilities 7he "ontractor 1ay perfor1 Fells Service operations according to its progra1 and operational needs, noting the 1easures re<uired for environ1ental and security, Article '53,( Fells Service responsibilitiy 7he "ontractor is also responsible of the 9or= that executes the Fells Service Unit, S9ab or the 9ire Line, of the e<uip1ent cleaning and that these are in operative conditions, 7hese e<uip1ents 9ill have a capacity and e<uip1ent enough for the progra11ed 9or= and 9ill be e<uipped 9ith <ualified and experienced Personnel, e<uipped 9ith safety e<uip1ent re<uired by the operation, Article '5',( #ight operations of S9ab 7he Hydrocarbons S9ab *perations should not be done at night, 6f that is neccesary, they should infor1 *S6#ER> and 9ill be carried out using lubricator 9ith hydraulic pac=ing 0Moil saverM2, 6n any case, should observe the follo9ing 1easures+ a2 7o avoid soil conta1ination by oil spills using 9aterproof 1e1branes or other 1aterial, chec=ing the fit of the connections, the lubricator should be installed properly and pac=agings in good conditions,

b2 6n case of spills, the ground should be cleaned by re1oving the conta1inated soil, transporting to the 9aste area and instead placing clean soil fro1 the sa1e place, c2 7he 9ater dra9n fro1 Fells intervened to be transported along 9ith the oil to the authoriHed unload place, Article '5&,( Rules for Fells Service Units e<uip1ent Are applicable for the e<uip1ent of the Fells Service Unit, the Articles 334, 33., 33;, 3'% and 3&) of this Regulation, Article '5),( *perational security 7he "ontractor should ensure that, in addition to the 1easures outlined in the relevant rules, be 1ade the follo9ing operational security 1easures+ a2 7o verify that the Fellhead type is suitable for the operation, other9ise, replace it, b2 7o be used 8*P according 9ith expected pressures at 9or=, 6ts installation, use and 1aintenance shall be as specified by the 1anufacturerKs 1anual, c2 7o set out of the fluid that controls the 9or=ing pressures in the Fell, enough to ensure a safe operation, d2 7hat the 9or= area only ad1its authoriHed Personnel and 9ith the appropriate security ele1ents, e2 7hat the Location re1ains clean after carrying out the 9or=, Article '5/,( For=s Report 7he "ontractor shall re<uire the subcontractor of the Fell Service Unit a daily report sho9ing all 9or= done to the Fell, including the 1ove1ent and asse1bly of the service unit, replace1ent of e<uip1ent, hours 9or=ed and the final state of the e<uip1ent 9ith settle1ent depths of the Plugs 0pac=ers2, pu1ps, nu1ber of ele1ents in the different strings 0tubing, rods, etc,2, as 9ell as stopping ti1es, 9ait, 1aintenance and accidents to be the case, 7o happen spill these should be reported in the report as an environ1ental Accident, Article '55,( Service register 8ased on the report referred to in the preceding Article, the "ontractor shall, for each Fell, a record of the Services and For=over 1ade, 6n this record 9ill sho9, at the end, the facility and update situation of the Fell and should ta=e during the productive stage, until its abandon1ent, Article '54,( Spills Spill is considered, subIect to report 9hen the follo9ing a1ounts are lost, by spillage or lea=age, For li<uid Hydrocarbons+ 3,5 1& 03% barrels2, For #atural >as + . );/,3 1& 0&%% %%% feet&2,

Article '5.,( "ontingency Plan 7he "ontractor is obliged to sub1it to PERUPE7R*, 9ith copy to *S6#ER> and !>H, the "ontingency Plan for *il Spills and E1ergencies specified in the Regulation for Environ1ental Protection in Hydrocarbon Activities, 7his plan 9ill be chec= annually, Article '5;,( AP6 practices

7he activities set forth in this "hapter should be used the reco11ended practices by AP6 0latest edition2 or any other institution of international standing, nor1ally used in the oil industry, such as+ SPE" )EL)F, RP )>, SPE" .A, .8, .", SPE" 5A, 5 AR, 5!, 5 FA, 5 F", 5 F8, RP 3)HL3)!, SPE" 3)AL34!, RP 3)8L3)" RP /)/, SPE" /8, RP /8 3L/"3, 8ULL /"'L/"&, RP /"/, SPE" /"7, RP 3/A), SPE" 3/AR, Reco1ended practices for ne9 "asing inspection, 7ubbing and drillpipe,

RP 4A3, SPE" ;A, RP /), RP 33AR, SPE 33AD, SPE" 338, RP 338R, SPE" 33", RP 33S3, RP 33S', RP 33S&, RP 33E/, SPE" 33# SPE" 33P RP 33P>7 RP 34A RP &. RP &; RP )3 RP )' Sti1ulation, RP )) RP )/ RP /5 Specifications for auto1atic transfer e<uip1ent 0LA"72, Specifications for co1pact gas co1pressors, Reco1ended practices for gas turbines, Reco1ended practices for design and sub1arine production *perations, 8iological analysis of 9ater inIection, Procedure to assessing Hydraulic Fracturing fluids, Procedure for reporting the perfor1ance of Hydraulic Fracturing e<uip1ent, Reco1ended practices for laboratory testing of surface active agents for Fell Reco1ended practices for Reservoir fluid sa1pling, Reco1ended practices for analysis of oil field 9aters, Reco1ended practices to test sand for Hydraulic Fracturing,

RP /4 Reco1ended practices for "o1pletion operations, Service, For=over, Plugging and Abandon1ent in offshore Fells, RP /. RP 5% Fracturing, RP 53 Fracturing, RP 5& Reco1ended practices for use of sand in Engravable, Reco1ended practices to test 1aterials, high resXstanse pac=ers to Hydraulic Reco1ended practices to evaluate pac=ing ele1ents conductive in Hydraulic Reco1ended practices to evaluate poly1ers used in 61proved Recovery,


anual of Petroleu1

easure1ent Standard,

A>A Report #$ &, #atural >as installation re<uire1ents2,

easure1ent and other hydrocarbon fluids 0for specifications and

Article '4%,( AP6 Pools 7he "ontractor 9ill use Pools of AP6 design, inter1ediate treat1ent syste1s, advanced or si1ilar syste1s to separate 9ater fro1 oil production and provide that this production 9ater does not pollute surface 9ater or ground9ater, 7he provision of 9ater is preferably 1ade by Re(inIection, or on the surface, using the syste1 approved in the Environ1ental 61pact Assess1ent or P A, under the Regulation for Environ1ental Protection of Hydrocarbon Activities, 7he design and use of the AP6 pools are described in the follo9ing AP6Ks current publications, or 9hich can be substituted+ PU8L )'% !ischarge 9ater 1anage1ent+ "he1ical coagulation and flocculation 0Replaces anual of !isposal of Refinery Faste2, PU8L )'3 anage1ent of 9ater discharges+ design and operation of Fater Separators ( *il,

Article '43,( 7esting for tightness in lines of produced 9ater 7he lines of produced 9ater discharge should be constructed in a 9ay that can test for tightness, "HAP7ER 6E SAFE7C EASURES 6# PR*!U"76*# FELLS

Article '4',( 6dentification of Hydrocarbons and other fluid pipelines Hydrocarbons and other fluids pipelines should be identified in accordance 9ith the #7P &;;,%3', Additionally, the buried pipe should be 1ar=ed at points 9here the ris= to suffer 1echanical da1age, Article '4&,( Accessibility to active production Fells Active Production Fells should have roads properly 1aintained facilities for heliport or vessels, if applicable, Article '4),( Location of cylinders 9ith che1icals "ylinders 9ith che1icals, should be 1aintained at a distance of ten 03%2 1eters fro1 the Fellhead and far fro1 any ignition source, Article '4/,( !esign, construction, operation and 1aintainance of the production batteries, *il production batteries, should be designed, constructed, operated and 1aintained in accordance 9ith the corresponding rules, as 9ell as the AP6 reco11ended practices and specifications listed in the current rules+ '4/,3 7he battery should be provided 9ith at least t9o dry che1ical po9der portable fire extinguishers, 9ith a certification of ter1ination of 3'%,8,",, #7P &/%,%)& and &/%,%5', '4/,' Posters, notices or signs of security, according to ris=, '4/,& 7he tan= area 9ill have di=es or any other e<uivalent, '4/,) Should be =ept clean avoiding accu1ulations andLor *il spills, as 9ell as free of vegetation and other fuel ele1ents, Article '45,( >as separators fro1 batteries

>as separators fro1 production batteries should be provided of safety valves to relieve pressure and proper operation should be secured recalibrated the1 annually or 1ore fre<uently, if is reco11ended by the 1anufacturer, Article '44,( >as or vapor venting fro1 the battery 7he gas or vapors venting fro1 the battery should be collected in pipes and transported to a distance not less than fifteen 03/2 1eters fro1 the battery to be burned in a burner 9hich height is not less than six 052 1eters and be located to lee9ard, 6n the offshore, river or la=e production platfor1s, the burners 9ill be located at least fifteen 03/2 1eters, "HAP7ER E F6S"AL6UE! HC!R*"AR8*# EASURE E#7

Article '4.,( FiscaliHed *il 7he 1easure1ent and FiscaliHation of Hydrocarbons fro1 the "ontract Area shall be in the fre<uency agreed in the FiscaliHed Production Points established in the "ontract, by "apacity or Auto1atic easure1ent, FiscaliHed Hydrocarbons 1easured 9ill be recorded in the respective ballots, Article '4;,( Auto1atic easure1ent Syste1s Fhen using Auto1atic easure1ent syste1s, the "ontractor shall install t9o 1eters, one of 9hich 9ill be operational and the other 9ill be for replace1ent, they should be e<uipped 9ith 1etering ballots printer that 9ill provide a daily 9ritten record of FiscaliHed Hydrocarbons volu1en, Article '.%,( eters 7esting 7he easure1ent e<uip1ent should be tested one 032 ti1e per 9ee= at least and chec=ed periodically at the re<uest of either Party, Article '.3,( "alibrations of "apacity and easure1ent e<uip1ent 7he calibration of "apacity and Auto1atic easure1ent e<uip1ent shall be 1ade 9henever necessary or at the re<uest of either Party, Article '.',( FiscaliHed Li<uid Hydrocarbon sa1ples 6n order to verify the physicoche1ical characteristics of FiscaliHed Li<uid Hydrocarbons at FiscaliHed Sites of the Production, periodically and as needed, but no less fre<uently than one 032 ti1e per 1onth, Parties si1ultaneously collect three 0&2 sa1ple of FiscaliHed Li<uid Hydrocarbons, 7hose sa1ples 9ill be sealed and stored for 0;%2 ninety days fro1 the day of its collection, 6n case of dispute, appropriate sa1ples 9ill be retained until the dispute is resolved, 6n case of dispute or disagree1ent about the result of the analysis this 9ill be resolved according to the dispute settle1ent 1echanis1 provided in the "ontract and additionally, the 1atter shall be referred to the entity that the parties agree 0#ational University of Engineering ( U#6, 6#!E"*P6 , a1ong others2, 9hose rulings are binding on the parties, Article '.&,( Procedure 6n case of producing #atural >as in a1ounts that 1erit its co11ercialiHation, the Parties 9ill agree on the procedure for 1easuring, fiscaliHation and <uality control of #atural >as, Article '.),( E<uip1ent and Procedures for the #atural >as FiscaliHation, 62 About E<uip1ent+ FiscaliHation Points for #atural >as should include 1odern e<uip1ent to carry out+

a2 "ontinuous flo9 1easure1ent using #atural >as accepted practices and used in the Hydrocarbons 6ndustry, b2 6n addition, 1ay install continuous 1easure1ent syste1s of the <uality of #atural >as or auto1atic co1pensation for changes in specific gravity of #atural >as or other appropriate procedure, 662 6n relation to Procedure+ a2 7he unit of 1easure1ent shall be one thousand 03 %%%2 cubic feet 0'.,&34 1&2 of #atural >as a base te1perature of 3/,/5 -" 05% -F22 and base pressure of 3 =gLc1', b2 7he integration factor of the record charts of the volu1es of gas delivered shall be revie9ed every six 052 1onths at least, on the basis of the deter1ination of specific gravity average of the last six 052 1onths, c2 7he authoriHed representatives of the Parties shall 1a=e the change and sign 1easure1ent charts or cards printers, to certify the authenticity of these charts, d2 7he first 9or=ing day every three 0&2 1onths the Parties 9ill calibrate 1easuring e<uip1ents in the presence of their representatives, 6f it is necessary 9ill provide the necessary actions to readIust e<uip1ents, e2 6f any test is perfor1ed, any 1easuring e<uip1ent 9ill sho9 an inaccuracy of three percent 0&S2 or 1ore, the records 9ill be corrected in proportion to such inaccuracy, for a period that is exactly =no9n and accepted by 1utual agree1ent, 6f that period is not exactly =no9n and accepted by 1utual agree1ent, then the correction 9ill be done in half the ti1e elapsed since the last calibration date, f2 #atural >as that is assigned to a Processing Plant for extracting only li<uids that 1ay contain, 9ill be 1easured at the entrance of the Processing Plant to deter1ine its pressure and calorific po9er, 7he 1easure1ent of this #atural >as 9ill be 1ade by the 87U content per cubic foot that is 1easured at this point, 7he re1ainder >as of this Li<uids extraction that is not co11ercialiHed i11ediately, 9hich calorific po9er should also be 1easured, can be used for 6nIection or Re(inIection or stored in its o9n Reservoir or fro1 third parties until further co11ercialiHation, 7he difference of the t9o 1easure1ents of the calorific po9er content 9ill be considered for FiscaliHed effects, Article './,( #atural >as Esti1ates 6f for any reason the 1easuring e<uip1ent is out of service or unable to be repaired, so that the <uantity of #atural >as to be delivered can not be esti1ated or co1puted fro1 the readings to be ta=en until that ti1e, the #atural >as delivered during that period 9ill be esti1ated and accepted by both Parties on the basis of the best available infor1ation and using one of the follo9ing 1ethods that are feasible+ a2 Using the record of any other 1easure1ent control e<uip1ent that 9as installed and that is recording 9ith sufficient accuracy, b2 "onsidering the a1ounts that are delivered by those 1ade during previous periods under si1ilar conditions 9hen the 1easuring e<uip1ent 9as registering accurately, Article '.5,( E<uip1ents reliability 6n order to preserve the integrity, reliability and security of the fiscaliHation e<uip1ents, the "ontractor shall ta=e the necessary actions, Li=e9ise, PERUPE7R* reserves the right to re<uire the installation of specific accessories to ensure the inviolability of 1easuring e<uip1ents,

Article '.4,( Applying rules 7he procedure for Hydrocarbons "apacity, Sa1pling, easure1ent, FiscaliHation and @uality "ontrol, shall be governed by the AP6, AS7 and A>A corresponding rules, Article '..,( AP6 Applications 6n the activities set forth in this "hapter should use the AP6 reco11ended practices, latest edition, or any other institution of international standing, as contained in the P S 0 anual of Petroleu1 easure1ent Standard2 ( latest edition, or any other internationally recogniHed institution in the oil industry, 767LE E6 6#F*R A76*#, 6#FR6#>E E#7S A#! PE#AL76ES Article '.;,( "onfidentiality of infor1ation 7he infor1ation gathered by the "ontractor of its *perations should be given to PERUPE7R* and *S6#ER> under Article &4 of the La9, the sa1e is confidential until the co1pletion of the period provided by Article &. of the La9, or earlier if agreed by the Parties, 7he "ontractor is responsible for extending this rule to its Subcontractors, Article ';%,( 7echnical 6nfor1ation anual 7he infor1ation that is re<uired by PERUPE7R* to feed its database should be sub1itted by the "ontractor under the M!elivery 7echnical 6nfor1ation anualM, 9hich 9ill be supplied and updated by PERUPE7R*, "opy thereof 9ill be sent to the !>H, Article ';3,( 6nfor1ation for the !>H 7he infor1ation that the "ontractor shall deliver to the !>H, 9ith copy to PERUPE7R*, is the follo9ing+ 62 Report of Reserves of the last year, 7he "ontractor should deliver no later than ?anuary of each year, to be used in preparing the Annual Report of Reserves, the follo9ing infor1ation+ a2 Structural and net sand 1aps updated per structure, b2 Fluid infor1ation, pressures and para1eters of reservoir roc=, c2 Stoc= of proved, probable and possible locations, d2 Esti1ates of corresponding reserves, 662 Engineering of Reservoir(Production Study, econo1ics andLor geology, to Iustify changes in volu1es of reserves over the previous year, 6662 Annual production of *il, >as and Li<uids #atural >as Forecast, inIection of fluids at field level and su11ariHed at 8loc= level, until the econo1ic li1it, 6E2 Esti1ated Reserves of *il, >as and Li<uids #atural >as, classified as proved developed 0in production and non production2, proved undeveloped, probable and possible, detailed for each field and su11ariHed by 8loc= at !ece1ber &3 last year, Should be used and reported the 1ethodology and procedures approved, such as the SPE L FP", E2 Esti1ate of developed Reserves by develop1ent drilling andLor exploratory during the year preceding the current year, E62 For=overs stoc=,

E662 Reasons for the differences bet9een the esti1ated reserves figures at !ece1ber &3 last year and reported this year, E6662 Reserves to include for 9ater and L or gas inIection proIects, Article ';',( *ther reports to sub1it to *S6#ER> and other institutions "ontractors shall, in addition to that provided in the preceding Article, sub1it the follo9ing+ a2 Spill Report, Spills, according to the provisions of Article '54 of this Regulation shall report to *S6#ER> verbally and by fax 9ithin t9enty four 0')2 hours of the occurrence, according to the for1 of PREL6 6#ARC REP*R7 *F *6L *R !ER6EA76EES SP6LL *R LEAJ prepared by *S6#ER>, "opy of these reports should be sent to the !>H and PERUPE7R* by the "ontractor, After conducting the corresponding investigation, shall be sub1itted to *S6#ER> 9ithin seven 042 days after the occurrence, the REP*R7 *F SP6LL *R LEAJ *F *6L *R !ER6EA7E!, according to the for1 developed by *S6#ER>, b2 Accidents Report to *S6#ER>, c2 Security and 1antainance annual progra1s, 9ill be sent to *S6#ER>, d2 All other reports, sa1ples, plans, designs, interpretations and other ele1ents that the !>H, PERUPE7R* and the *S6#ER> as= the "otnractor 9hich cost has been recorded in boo=s as cost of *perations, Article ';&,( Punishable offences Punishable offences are the breaching of the provisions of this Regulation, At the sa1e results punishable give false infor1ation or not provide the infor1ation re<uired by PERUPE7R*, the !>H or the *S6#ER>, Sanctions 9ill be i1posed according to the current rule that approves the "lassification of *ffences and Fines and Penalties Scale fro1 *S6#ER>, 767LE E66 USE *F PU8L6" A#! PR6EA7E PR*PER7C >**!S Article ';),( Rights for the use of public and private property goods 7he "ontractor has the right to 1anage per1issions, user rights, ease1ent and land surface on private property and of the State, as 9ell as related direct a9ard of land 9hose o9nership belongs to the State, as the case, Li=e9ise, is authoriHed to use at free 7itle the soil, subsoil and air of public roads, streets, s<uares and other public property, and to establish path9ays in river crossings, bridges, rail9ays, po9er and co11unications lines, Regarding the constitution of surface rights, are governed by the provisions of this 7itle, as are applicable, Article ';/,( 7ypes of ease1ent in the Exploration and Exploitation Activities 7he ease1ent for the occupation of public and private goods, 1ay be+ a2 *f occupation of public or private goods: b2 8y the 9ay: and, c2 *f transit,

7he right of ease1ent shall include the occupation of the surface of soil and subsoil, if this is necessary, 6n cases of inco1patibility bet9een the re<uested ease1ent and any other 1ineral energetic right i1posed about the property, this inco1patibility shall be resolved by the 6#E , Article ';5,( Ease1ent constitution Legal ease1ents, as 9ell their a1end1ent are constituted by Supre1e Resolution, 7o this effect, the 6#E should follo9 the ad1inistrative procedure that is indicated in this Regulation, 6n the Supre1e Resolution that constitutes or a1ends the ease1ent right, 9ill be indicated the 1easures to be adopted to avoid the danger and inconvenience that can cause the instalations that this co1prise, Article ';4,( *bligation to inde1nify and co1pensate 7he constitution of the right of ease1ent under the La9 and this Regulation, obliges the "ontractor to inde1nify, 7his co1pensation shall be fixed by agree1ent of the parties: other9ise, shall be fixed by the 6#E , according to the provisions of Article &3% of this Regulation, 6n addition, the right of ease1ent granted to the "ontractor the right of access to the necessary area of the property, for purposes of 1onitoring and 1aintenance of facilities for 9hich the ease1ent 9as 1otivated, should ta=e the necessary 1easures to prevent da1ages being subIect, be the case, civil or cri1inal liability corresponding, 7he constitution of the right of ease1ent on properties 9hose o9nership belongs to the State is free, unless the property to be taxed is incorporated to any econo1ic process or useful purpose, in 9hich case the "ontractor shall pay the corresponding co1pensation in accordance 9ith current legislation, Article ';.,( Po9ers and obligations under the constitution of the right of ease1ent 7he right of ease1ent gives the "ontractor the right to build infrastructure or facilities necessary for the i1ple1entation of the "ontract through third(party property, on or belo9 the soil surface, and 1aintain o9nership of such facilities separate fro1 land o9nership, prior co1pensation that 1ight arise under the provisions of this Regulation, Article ';;,( Rights of the o9ner of the servient estate 7he constitution of the right of ease1ent does not prevent the o9ner of the servient estate to encircle or build in it, provided it is not 1ade on the infrastructure or facilities and its Hone of influence, or on the areas over 9hich is granted ease1ent occupation, and as let the expeditious 1eans for operation, 1aintenance and repair of facilities, co1pliance 9ith 1ini1u1 safety distances set out in this Regulation and the ter1s on 9hich is constituted the right of ease1ent, Article &%%,( Ease1ent of te1porary occupation 8y Supre1e Resolution 1ay be set to the "ontractor and as its re<uest, te1porary occupancy ease1ent on land 9hose o9nership belongs to the State and privately o9ned lands in order to use it for storage, storage of 1aterials, pipe laying or any other services necessary for the execution of the 9or=s, 7he te1porary occupancy ease1ent entitles the o9ner the servient estate to receive pay1ent as co1pensation established by the Regulation, for the ti1e re<uired for execution of 9or=s, 7he ease1ent referred to in this Article, shall lapse on the co1pletion of the 9or=s for 9hich it 9as authoriHed, Article &%3,( 7ransit ease1ent 7he right of ease1ent for access roads and transit for the purposes of the "ontract, shall be constituted in accordance 9ith the provisions of this 7itle, as are applicable,

Article &%',( Ease1ents on private properties o9ned 7he ease1ents on private properties o9nership is established by agree1ent bet9een the "ontractor and the o9ner of the property andin the absence of agree1ent, by the procedure laid do9n in this Regulation, 7he "ontractor shall re<uest in 9riting to the o9ner, the adoption of the agree1ent for the establish1ent of the right of ease1ent, 7he agree1ent bet9een the parties shall appear in docu1ent issued by a #otary Public or ?ustice of the Peace, and should be 1ade a9are of the !>H 9ithin a 1axi1u1 period of thirty 0&%2 calendar days fro1 its subscription, After thirty 0&%2 calendar days fro1 the co11unication sent by the "ontractor to the o9ner, 9ithout the parties have reached an agree1ent, 9ill expedite the "ontractorKs right to sub1it to the !>H the application for the constitution of right of ease1ent to be referred to in the follo9ing Article, 9hich shall acco1pany the record of the receipt of that co11unication by the lando9ner, Fhen the o9ner of the property to be taxed by the ease1ent is not =no9n or is uncertain, or ignore its address, or any other si1ilar situation 9hich prevented, to identify or locate the o9ner, the "ontractor shall re<uest the !>H a 1odel of notice, to publish to its charge 9ithin ten 03%2 calendar days after, Publication shall be for t9o 0'2 consecutive days in the official gaHette El Peruano and in one of the 1aIor ne9spapers 9here it is located the property concerned or the greater part of it, 7he o9ner of the property to be taxed shall 9ithin ten 03%2 calendar days to ac<uit the transfer, such period to be counted fro1 the date of last publication, After this deadline, "ontractor 1ay sub1it a re<uest for the constitution of the right of ease1ent referred to in the follo9ing Article, 9ithout having previously studied the co11unication referred to in the preceding paragraph, For this purpose, the "ontractor shall attach to the application an affidavit of not being able to establish the identity and address of o9ner, "*#"*R!A#"E+ R, #- 54.('%%.(*S("!, Appendix 6, Art, /, nu1, /,3,3

Article &%&,( Re<uire1ents to re<uest ease1ents constitution 7he re<uest for the constitution of one or 1ore ease1ents that the "ontractor sub1its to the !>H should include the follo9ing re<uire1ents+ a2 #ature and type of the ease1ent, b2 7er1, c2 7echnical and econo1ic Iustification, d2 List of properties affected, 9ith the na1e and address of each o9ner, if =no9n, 6n the case referred to in the last paragraph of Article &%', the "ontractor shall attach corresponding Affidavit, e2 !escription of the situation and current use of land and air to affect, f2 "opy of the registry corresponding to property to be affected, if applicable, g2 !escriptive specification and plans in U7 coordinates of the properties on 9hich re<uests the constitution of the right of ease1ent, 9hich 9ill be attached copy of the plans 9here the affected area is located in each of the servants properties 9ith 9hich o9ners no agree1ent exists on the a1ount of co1pensation, h2 Respective valuations of the areas affected by each ease1ent to be established, issued by any of the entities referred to in Article &3% of this Regulation,

i2 Fhole pages of the publication in the *fficial >aHette El Peruano and one of the largest circulation ne9spaper 9here the property is located, only for the case noted in the last paragraph of Article &%', Article &%),( *bservation of the application 6f the re<uest does not 1eet the re<uire1ents specified in the preceding Article shall be observed by the !>H and 9ill only be processed if the applicant corrects the observations, 9ithin a 1axi1u1 period of ten 03%2 calendar days fro1 the date of notification, other9ise the application shall be considered abandoned, Article &%/,( 7ransfer of the re<uest to the o9ner of the servient estate *nce approved the re<uest, the !>H be conveyed to the o9ner of the servient estate referred to in subparagraph g2 of Article &%&, attaching a copy of the petition and the docu1ents that support, 7he o9ner shall absolve the transfer 9ithin a 1axi1u1 period of fifteen 03/2 9or=ing days notified, 6f the right of ease1ent lies on properties 9hose o9nership belongs to the State, !>H 9ill re<uest the corresponding report to the entity or division to 9hich is assigned the land area of the ease1ent, 7he report should indicate 9hether the property to be taxed is incorporated to any econo1ic process or useful purpose, 6f 9ithin fifteen 03/2 calendar days to notify the referred entities or sectors, do not resolve the re<uired report, shall be dee1ed to have no co11ents to the re<uest of constitution of the right of ease1ent, the !>H should proceed to prepare a report and the corresponding Supre1e Resolution proIect, as provided by the Article &%., Article &%5,( *9nerKs right to obIect 7he opposition of the o9ner to the constitution of the right of ease1ent shall be duly substantiated, and if applicable, shall attach the docu1entation it dee1s appropriate and necessary to Iustify its opposition, 7he !>H shall notify the "ontractor for co1pleting the for1alities and present relevant exculpatory evidence 9ithin ten 03%2 calendar days of notified, Article &%4,( Search on the opposition 6f the "ontractor searches to the opposition of the o9ner, the right of ease1ent 9ill be established to the a1end1ents accepted by the "ontractor, 6f, as a result of opposition fro1 the o9ner to the valorisation by the "ontractor, the parties reached an agree1ent on the a1ount of co1pensation that is to pay, the Supre1e Resolution constituting the right of ease1ent 9ill establish as co1pensation the agreed a1ount by the parties, a situation in 9hich there is no recourse for recovery expert referred to the Article &3%, 6f the "ontractor does not absolve the opposition raised center of the fixed ter1, the application shall be considered abandoned, Article &%.,( Approval of the ease1ent Fithin a 1axi1u1 of five 0/2 calendar days after the deadline for the o9ner to absolve the 1ove 9ithout having done or having notice of opposition after it ac<uitted by the "ontractor and in both cases, after receiving the expert report referred to the Article &3%, if applicable, the !>H prepare the report and the draft Supre1e Resolution ordering the constitution of ease1ents and the co1pensation due, 9ithin the sa1e ti1e raising the issue acted for, Supre1e Resolution shall be issued 9ithin ten 03%2 follo9ing calendar days and shall be countersigned by the inister of Energy and ines and the inister of Agriculture, Article &%;,( "hallenges to the constitution of ease1ents 7he Supre1e Resolution that constitutes or a1ends a uni<ue ease1ent could be challenged in the ad1inistrative via by the appeal for reversal, 7his appeal is optional,

7he deadline for filing the appeal for reversal is five 0/2 9or=ing days notice of the resolution and 9ill be resolved 9ithin a 1axi1u1 of ten 03%2 9or=ing days bringing the appeal, after 9hich it is understood that has been configured the negative ad1inistrative silence, in accordance 9ith the provisions of the La9 #$ '4))), "ontentious ad1inistrative action referred to the La9 #$ '4/.), only proceed 9ith respect to the a1ount fixed as co1pensation, 7he legal challenge of the Supre1e Resolution that i1poses or 1odifies the ease1ent 9ill not suspend its execution, Article &3%,( Expert valuation of property "o1pensation shall be deter1ined by the valuation expert to conduct a professional specialty of the activity in the area of the property to be taxed by the ease1ent, designated by 7echnical "orps of Ealuations, Ealuations #ational "ouncil or the relevant professionals Associations, the sa1e that 9ill be deter1ined by the !>H, unless the o9ner of the servient estate does not absolve the transfer of the constitution re<uest of ease1ent 9ithin the period prescribed in Article &%/, in 9hich case the !>H should be considered as co1pensation the a1ounts indicated in the valuation sub1itted by the "ontractor under subparagraph h2 of Article &%&, 7he entity to be deter1ined by the !>H is an entity different fro1 the one that prepared the valuation report sub1itted by the "ontractor in its application, 7he valuation 9ill include+ a2 A co1pensation for the use of land to be taxed by the ease1ent, that in no case be less than the tariff value of the land approved by the inistry of Agriculture, b2 A possible co1pensation for loss of earnings during the ti1e horiHon of the ease1ent, calculated according to the usual activity of the conductive, 7he a1ount of the fees for the valuation entity 9ill be borne by the "ontractor, Article &33,( Pay1ent of co1pensation 7he a1ount of co1pensation set by Supre1e Resolution shall be paid by the "ontractor 9ithin ten 03%2 calendar days after the deadline to appeal for reconsideration referred to in Article &%;, in the case that this appeal had been filed, Should have brought the appeal for reconsideration, the period is counted fro1 the notification of the resolution that solves the appeal for reconsideration, or since that the person adversely has brought the corresponding appeal fro1 the expiry of the deadline to resolve the resource provisions of Article &%; 9ithout issued the Supre1e Resolution to solve it, "o1pensation shall be paid direct to the o9ner, unless this refuses to receive pay1ent or has not conclusively proven his right to property, or 9hen the o9ner of the property taxed 9as not =no9n or uncertain, or ignore his ho1e or in any other si1ilar situation 9hich prevented, to identify or locate the o9ner, or appropriate co1pensation for da1ages caused to third parties other than the o9ner to conduct or be in possession of the property, by any 7itle, according to the report of the expert, 6n such cases, the "ontractor shall record Iudicially the a1ount of co1pensation, such pay1ents being subIect to the rules of the "ivil "ode and the "ode of "ivil Procedure, Shall deposit the co1pensation 9ith the sub1ission of the copy of the 9rit ad1itting of the respective application, After 1a=ing the pay1ent or deposit the co1pensation, the "ontractor 1ay enter and ta=e possession of the property on part of 9hich the ease1ent has been established for the purpose of fulfilling the purpose for 9hich it constitutes, 7he contradiction to the re<uest for Iudicial offer of pay1ent of co1pensation in any case shall not suspend the exercise of right of ease1ent under the Supre1e Resolution exhausted ad1inistrative channels or application of negative ad1inistrative silence,

6n case of opposition by the o9ner or conductor of the servient estate the inco1e of the "ontractor for the exercise of the servitude shall be entitled to the !>H re<uest that the co1petent authority has the entry and ta=ing possession of part of the servient estate to the assistance of the public force 9ithout preIudice to initiating legal action that could ta=e place, "ontractor shall have the sa1e right in the case of ease1ents established by agree1ent of the parties referred to in Article &%', 7he exercise by the "ontractor fro1 the ease1ent i1posed under this 7itle E66 and other applicable regulations shall not be considered as an act of disrupted of the possesion of the o9ner, or o9ner of the servient estate, Article &3',( Extinction of ease1ents 8y Supre1e Resolution, at the re<uest of a party or ex officio, shall declare the extinction of ease1ents established 9hen+ a2 Fithout previous authoriHation, the "ontractor assigns the ease1ent to a different purpose for 9hich it 9as re<uested, b2 7er1 is given to the purpose for 9hich the ease1ent established, c2 8reaching the pay1ent of the co1pensation fixed by Ad1inistrative Resolution or by ?udicial Resolution fir1, Article &3&,( Extinction Procedure of the Ease1ent, 7he extinction procedure of the ease1ent 9ill begin at the inistry of Energy and ines,

*nce ad1itted the re<uest, the !>H be conveyed to the party or parties, attaching a copy of the petition and the supporting docu1ents, 7he !>H 9ill notify the party or parties concerned, 9ho shall respond to the re<uest 9ithin a 1axi1u1 of fifteen 03/2 calendar days of notification, 6f 9ithin that period is not filed an ac<uittal, is dee1ed not to have co11ents on the extinction procedure, After the period referred to in the preceding paragraph 9ithin ten 03%2 calendar days the !>H 9ill prepare the Supre1e Resolution !raft that 9ill be supported by a technical report, sub1itting the case to the hierarchical superior for its issue, 7he Supre1e Resolution shall be issued 9ithin the follo9ing fifteen 03/2 calendar days and shall be countersigned by the inisters of Energy and ines and Agriculture, "* PLE E#7ARC PR*E6S6*#S First,( Are applicable the list of rules and international practices for the *il industry 1entioned in this Regulation, alternatively, 9ill apply the best practices for use in the referred industry, Second,( "ontractors, if possible and as part of the 1anage1ent syste1 of the co1pany, tend to get the "ertifications of Environ1ental anage1ent Syste1s 06S* 3) %%% or e<uivalent2 and Ris= anage1ent, as 9eb as Safety and *ccupational Health 0*HSAS 3. %%% or e<uivalent2, 9hich should contain at least the follo9ing+ a2 Environ1ental Policy of Safety, Hygiene and *ccupational Health, b2 Ris= Analysis, c2 *bIectives and goals of each one of the ite1s,

d2 Platfor1 for Structure and Responsibility Platfor1, "o11unication and For1al !ocu1entation, e2 *perational "ontrol about critical ele1ents, f2 Plans and Education and 7raining Progra1s, g2 E1ergency Plans and Response "apacity, h2 anage1ent Revie9,

7hird,( 7he regulation does not li1it the use of syste1s, 1ethods, 1aterials or accessories e<uivalent or superior <uality, strength, effectiveness, durability and safety prescribed here, Ho9ever, the proposal that differs fro1 the Regulation shall be supported technically to the "o1petent 8odies, 6n case of discrepancy bet9een codes and standards or bet9een the1 and the rules indicated in this Regulation shall prevail the ones that give greater security to the facilities, Fourth,( 6n order to allo9 the incorporation of ne9 technological develop1ents, ne9 products or 1aterials, or ne9 re<uire1ents, the !>H 1ay approve the use of other codes and standards e<uivalent or practices of design, construction, operation or 1aintenance are not considered in this Regulation provided that their use is nor1al acceptance in international oil industry, 7he codes and standards and practices approved shall be dee1ed and incorporated into this Regulation, 7RA#S676*#AL PR*E6S6*#S First,( 6n the case of Fells that are in 7e1porary Abandon1ent "ondition 0A7A2 or Per1anent 0APA2 that are highly ris=y environ1ental liabilities to the public and the environ1ent, the co1petent authorities, according to the principles of la9 and legal nor1s, deter1ine responsibility and security 1easures ta=en for 1aintenance and per1anent abandon1ent, Second,( 6n Exploitation contracts 9hich are in force at the date of adoption of this Regulation, the first technical report of evaluation, referred to in Article '3%, 9ill be presented in ?anuary, follo9ing t9o 0'2 years the adoption of this Regulation, 7hird,( Regarding the obligation of presentation of the PAAS referred to the Article '3 of this regulation, it shall be re<uirable fro1 the 1onth of #ove1ber '%%/, Fourth,( Ad1inistrative proceedings before the entry into force of this Regulation shall be governed by the previous regulations to its conclusion,

APPE#!6D A PERUE6A# 7E"H#6"AL S7A#!AR!S #7P &;;,%3' 6dentifying colors of pipeline for transportation of fluids in gaseous or li<uid state in *nshore facilities and vessels, #7P &/%,%)& #7P &/%,%5' Selection, "ataloguing, 6nstallation and *peration of extinguishers Relative Effectiveness of Extinction 0Rating2,