The government will consider withdrawing the operating license or making concessions to companies for environmental violations.

The government proposes a new project that will change General environmental law establish new penalties for companies committing environmental offenses.

According to a recent newspaper report Control, executive branch is preparing a new project that will allow the license or concession to be revoked from companies in the midst of environmental sanctions.

The initiative, which will be titled “An Act that Incorporates and Amends Articles of Law No. 28611, General Environmental Law,” includes Article 136-A1.

With this change, the draft states that when a company is subject to sanctions for failing to comply with precautionary measures prescribed by the Environmental Assessment and Enforcement Agency (OEFA) in the midst of an environmental emergency declaration, it may revoke the permit. title.

This draft also indicates that only through the administrative process sanction for recall without recourse to the judicial authorities.

When revoking a license or concession, the rule specifies that the competent authority will take “exceptional measures” to continue the activity until the activity is terminated.

Currently, the maximum sanction set by OEFA is a fine of up to UIT 30,000, equivalent to approximately SGD 138 million.

Most of environmental administrative measures introduced by OEFA were installed in the industrial sector (46%), followed by mining (35%), agriculture (10%), hydrocarbons (7%) and fisheries (2%).

Cases in which this measure would be applied

One case where the permit could have been revoked if the measure were in place would be the case of Repsol.

Recall that at the beginning of the year it was reported about the oil spill in Ventanilla due to the responsibility La Pampilla Refinery Repsol company.

With regard to Petroperú, it is indicated that the state-owned company has recorded several oil spills on the Norperuano pipeline, but the management report indicates that it will seek to exempt the state-owned company from sanctions of this type.