NationalDecree 1638/2012, enacted by the Federal Executive Power on 09/06/2012 (published in the Official Gazette on 09/11/2012)

The Decree established that in order to comply with Section 22 of Law No. 25675 (Environmental General Law, “LGA” after its acronym in Spanish) two kinds of insurance may be contracted: (a) a Performance Bond Insurance Policy for Environmental Damages with a Collective Impact; or (b) a Liability Insurance Policy for Environmental Damages with a Collective Impact. Also, it provides that the Argentine Superintendence of Insurance (the “SSN” after its acronym in Spanish) must draft the text of the insurance coverage, which will be regulated only by the general and uniform conditions to be set forth by the SSN, according to the following guidelines: (i) Coverage will only guarantee the financing of the remediation of an accidental environmental damage with a collective impact, whether sudden or gradual, unless remediation is not technically possible, in which case the financing will be substituted for a monetary compensation under the provisions of Section 28 of LGA. (ii) An environmental damage with a collective impact exists when it is an unacceptable risk to human health, or it has destroyed or abusively degraded natural resources. (iii) As regards the Performance Bond Insurance Policy for Environmental Damages with a Collective Impact, the cause of the accident must occur during the term of the policy. (iv) The Liability Insurance Policy for Environmental Damages with a Collective Impact shall only cover damages first appearing or discovered during the term of the period, and duly notified to the insurer during such term or during an extended notification period. Deductibles may not exceed 10% of the sum insured.