Centro de Investigaciones y Desarrollo Científico –CIDC

I. The Ministry of Energy will sanction the following:

a) Failure to comply with the terms and conditions established in the Assignments, with a fine between 15,000 and 75,000 times the amount of the minimum wage;

b) For starting the implementation of the Exploration plan or Extraction development plan without the corresponding authorization, with a fine between 150,000 to 450,000 times the amount of the minimum wage;

c) Assigning, transferring, selling, or encumbering, wholly or partially, the rights or obligations arising from an Assignment in contravention of the provisions of this Law, with a fine between 375,000 to 750,000 times the amount of the minimum wage;

d) The Exploration and Extraction of Hydrocarbons without an Assignment or Exploration and Extraction Contract in force, as referred to in this Law, with a fine between 5,000,000 to 7,500,000 times the amount of the minimum wage, plus an amount equal to the value of the extracted Hydrocarbons in accordance with the estimation made by the National Hydrocarbons Commission for such purpose; and

e) Other violations to Title II of this Law and its regulatory provisions, as well as the regulations, guidelines, and administrative provisions issued by the Ministry of Energy, with a fine between 7,500 to 225,000 times the amount of the minimum wage.

II. The National Hydrocarbons Commission will sanction the following:

a) If the information collected as a result of surface inspection and exploration is not delivered in a timely manner pursuant to the regulation and corresponding authorizations, with a fine of 7,500 to 225,000 times the amount of the minimum wage;

b) Failure to comply with the terms and conditions established in the authorizations issued for Surface Exploration and Extraction activities, with a fine between 7,500 to 75,000 times the amount of the minimum wage;

c) Starting the Surface Exploration and Extraction works without the corresponding authorization, with a fine between 150,000 to 450,000 times the amount of the minimum wage;

d) Starting the Surface Exploration and Extraction works by assignees and contractors without giving the corresponding notice referred to in Article 37, third paragraph, of this Law, with a fine between 15,000 to 75,000 times the amount of minimum wage;

e) Drilling without the corresponding authorization in accordance with the regulation to be issued by the Commission for such purpose, with a fine between 150,000 to 375,000 times the amount of minimum wage;

f) Starting the implementation of the Exploration plan or Extraction development plan without the corresponding authorization, with a fine between 750,000 to 3,000,000 times the amount of the minimum wage;

g) Failure to comply with the Exploration plan or Extraction development plan, with a fine between 150,000 to 3,000,000 times the amount of minimum wage;

h) Failure to comply with the agreements reached through negotiation or the measures decreed by the Federal Executive or the competent courts concerning the use and occupation of land surface referred to in Chapter IV of this Title, with a fine between 150,000 to 3,000,000 times the amount of minimum wage;

i) Carrying out Hydrocarbon production and development activities without a measuring system approved by the Commission, with a fine between 3,000,000 to 6,000,000 times the amount of minimum wage;

j) Assigning, transferring, selling, or encumbering, wholly or partially, the rights or obligations derived from an Exploration and Extraction Contract in contravention of the provisions of this Law, with a fine between 750,000 to 6,000,000 times the amount of the minimum wage;

k) Carrying out any action that prevents the exploration, development, and production of Hydrocarbons, the activities related the execution of geological, geophysical, or other works violating the provisions of this Law and the regulations issued by the Commission, with a fine between 75,000 to 225,000 times the amount of the minimum wage; and

l) Other violations to Title II of this Law and its regulatory provisions, as well as the regulations, guidelines, and administrative provisions issued by the National Hydrocarbons Commission, will be sanctioned with a fine between 15,000 to 400,000 times the amount of the minimum wage.

III. The Ministries of Finance and Public Credit, Energy, and Economy, the National Hydrocarbons Commission, or the Agency, will sanction in their areas of competence the following:

a) Restricting access to inspectors and verifiers to facilities related to activities of the Hydrocarbon industry, with a fine between 75,000 to 225,000 times the amount of the minimum wage;

b) Interference or failure to comply with the obligation to inform or report any situation related to this Law or its regulations, in accordance with the applicable legal provisions, with a fine between 7,500 to 150,000 times the amount of the minimum wage;

The foregoing will apply to third parties operating on behalf of the Assignees or Contractors which interfere or fail to comply with the obligation to notify or report to the competent authorities, pursuant to the provisions established in this Law and other applicable provisions; and

c) Providing false, altered information or simulating accounting records in accordance with the legal provisions, with a fine between 3,750,000 to 7,500,000 times the amount of the minimum wage.

IV. The violations to Title II of this Law and its regulatory provisions, as well as the regulations, guidelines, and administrative provisions issued by the Agency, will be sanctioned with a fine between 750,000 and 7,500,000 times the amount of the minimum wage.

Article 81.- Violations to Title III of this Law and regulatory provisions will be sanctioned by taking into