In this connection, the National Government announced that a new project of law regarding the petroleum royalties regime would be presented to Congress during the first part of this month, with an urgency message attached to it (the President's constitutional power to expedite the legislative process).
The project of law incorporates the concept of variable royalties by means of which royalties are paid at rates between 5% and 20% depending on the size of the pit. The 25% maximum royalty established under Law 619 of 2000 is not contemplated in this project.
With the emergency message attached the Government expects the law to be ready for the President's signature by December of 2001.
As mentioned in the judgment from the Constitutional Court in connection with Law 619 of 2000, the issuance of this law is essential for the petroleum business in Colombia, taking into account that the regulations on royalties in effect before the issuance of Law 619 of 2000 do not seem to make the petroleum business feasible.
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