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CHILE'S ENVIRONMENTAL FRAMEWORK LAW: CONSIDERATIONS FOR FOREIGN INVESTORS

(c) John A. Detzner and Pedro Aylwin Ch.


I.     INTRODUCTION

     Chile's anticipated accession to the North American Free Trade Agreement ("NAFTA") is due in large part to the country's successful economic policies, including the consistent and transparent operation of its foreign investment regime. International recognition of this remarkable economic development and stability is reflected perhaps most strongly in the growing level of foreign investment in Chile. In early 1995 the Chilean Foreign Investment Committee reported a record $4.66 billion of materialized foreign investment in 1994, a 70.1 percent increase over the previous year.1This demonstration of investor confidence likely will continue and increase as negotiations go forward over Chile's accession to NAFTA.

     In positioning Chile for NAFTA negotiations, successive Chilean administrations have recognized the need not only for a transparent foreign investment regime, but also for an equally transparent and viable environmental protection regime.2 As summarized recently by the Director of Chile's National Commission on the Environment:3 "What NAFTA does require . . . is the existence of adequate legislation, regulation, and norms that protect the environment, as well as the existence of adequate mechanisms for their implementation and enforcement, and that we are creating here now."4

     Potential foreign investors, anticipating both Chile's accession to NAFTA and the country's promulgation and enforcement of new environmental regulations, are now looking carefully at the proposed implementation of Chile's Environmental Framework Law, enacted on March 1, 1994.5 Following a brief summary of Chile's foreign investment regime, this article explains provisions of Law No. 19.300 that will affect foreign investment projects in Chile.

II.     OVERVIEW OF CHILE'S FOREIGN INVESTMENT REGIME

     A.     Decree Law 600

     Chile's foreign investment regime is based primarily on the Foreign Investment Statute, Decree Law 600 of 1974, as amended.6 This law generally guarantees non-discriminatory and non-discretionary treatment to foreign investors. Among the specific guarantees it provides are the following:

     Decree Law 600 applies to foreign individuals and legal entities, as well as to Chileans residing or domiciled abroad who invest in Chile.13

     B.     Foreign Investment Approval Procedures

     Chile's procedure for review and approval of foreign investments is straightforward, involving, first, completion of a standardized form requesting basic information concerning the foreign investor and the investment project, which must be submitted together with a power of attorney for the investor's representative in Chile. Foreign companies must also provide a copy of their articles and certificate of incorporation. All materials must be submitted in Spanish, and must be legalized and notarized.

     The Foreign Investment Committee's review and approval of proposed foreign investment projects of less than $5 million can be reviewed and approved directly at the Executive Secretariat level,14 generally in less than 20 days. Larger projects, and projects involving utilities such as telecommunications, require approval by the full Committee, and, in certain sectors, approval by a government ministry,15 resulting in a review and approval period of approximately eight weeks.

     Once approved, the foreign investment is officially authorized through a contract signed by the foreign investor and the Foreign Investment Committee, on behalf of the State of Chile.16 The contract, which specifies the rights and obligations of both parties, is considered to be a "Contract Law," and therefore cannot be unilaterally modified by the State of Chile. This designation maximizes the stability of the agreement's terms, including the guarantees summarized above.

     C.     Repatriation of Profits and Capital, and Foreign Exchange

     When repatriating profits and capital, the foreign investor is guaranteed free access to the official foreign exchange market, i.e., the right to acquire foreign currency at the highest official market rate of exchange.17 With regard to profits, the foreign investor presents documentation of such profits, such as balance sheets and company records, together with a certificate indicating that corresponding taxes have been paid. Authorization to acquire foreign currency for the remittance of profits generally is provided within 48 hours.

     Similar procedures are followed for capital repatriation after the one-year minimum period, with any capital gains subject to general Chilean tax laws.18 Although prior approval is required in order to sell the investment before one year, the capital repatriation time limit can be avoided if the buyer is another foreign person and the payment is made abroad. The original "Contract Law," however, must be amended, making the new foreign investor subject to the same rights and obligations as its predecessor.

III.     CHILE'S CURRENT ENVIRONMENTAL PROTECTION REGIME

     Although the Chilean Political Constitution of 1980 recognizes the right to live in a pollution-free environment,19 the need for a comprehensive environmental protection regime in Chile was apparent for many years prior to the enactment of Law No. 19.300. By 1994 "[o]ver 800 conflicting legal and regulatory requirements were scattered throughout the Chilean legal code, involving over 70 different government ministries and agencies."20

     These laws and regulations currently require different permits and authorizations from a number of different regulatory agencies.21 For example, the Chilean National Forestry Corporation22 is responsible for overseeing and controlling forestry projects, and must approve the related forestry project management plan.23 To the extent the proposed project may affect native forests and certain other natural resources, the project participants must address the restrictions imposed by Chile's Forestry Law.24 In the event the proposed project may affect certain public lands designated as national wildlife areas, consideration must also be given to the standards and procedures provided under a law, pending but not yet in force, concerning a national system for the protection of such wildlife areas.25

     In the event that forestry project includes a wood chip or wood pulp processing plant, and a related purification or neutralization system for liquid or solid wastes, another permit is required from the Governor of the respective Chilean region.26 Another authorization likewise is required, prior to commencement of the waste treatment plant, from the Chilean National Health Service pursuant to Chile's Health Code of 1968.

     Should the proposed forestry project raise issues of air contamination, the National Health Service must first review the proposed project, define its impact and determine its influence on local pollution levels. In sum, a host of laws and regulatory systems come into play,27 making it difficult to determine the final viability of the proposed project, or predict if and when all required permits and authorizations will be obtained.

     In overhauling this current regulatory system, Chile has conferred with other countries, particularly its anticipated NAFTA partners. For example, in 1992 Chile entered into an agreement with the United States to establish an Enterprise for the Americas Environmental Fund and Environmental Board.28 On January 26, 1995, CONAMA signed a memorandum of understanding on environmental cooperation with Canada's counterpart agency. This agreement seeks to promote bilateral cooperation and establish a work program to harmonize environmental legislation and policies, and address common issues such as air pollution and wastewater treatment. The agreement also calls on the two countries to establish a Joint Environment Committee to oversee implementation of the work program.29

     Such efforts have not eliminated international criticism of Chile's current environmental protection regime. The World Bank, for example, recently praised Chile's commitment to environmental protection, but found the country's current environmental protection regime to be "fragmented," and "without coordination or effective enforcement."30

IV.     OVERVIEW OF CHILE'S ENVIRONMENTAL FRAMEWORK LAW NO. 19.300 OF 1994

     Law No. 19.300 reflects a major environmental reform effort to address such concerns, while at the same time balancing adequate environmental protection with continued economic development. It is a general framework law for environmental protection, and is designed to serve as a basis for additional laws and regulations that will focus on specific environmental issues. In particular, Law No. 19.300 requires designated ministries to develop environmental quality standards,31 including emission standards.32 Both primary and secondary environmental quality standards will be enacted by executive branch "supreme decree," and must be reviewed every five years.33

     This environmental framework law also provides for the development of management, prevention and decontamination plans for the use and development of natural resources,34 including the establishment of tradable emission permits.35 In addition, Law No. 19.300 provides for the protection of wildlife and wildlife areas, and the development of related procedures.36

     Further, it establishes the legal basis for imposing sanctions for environmental damage,37 and defines a standard of liability, providing for potential penalties for violators,38 including fines and the temporary or permanent closing of a project or activity.39 It also provides for related procedures for imposing such sanctions.40

     Finally, Law No. 19.300 establishes an Environmental Protection Fund,41 and establishes by law the National Environmental Commission and its various administrative entities, such as its Advisory Council, as well as the Regional Environmental Commissions.42

V.     ENVIRONMENTAL IMPACT EVALUATION PROCEDURE UNDER LAW NO. 19.300

     Law No. 19.300 provides for procedures to evaluate the anticipated environmental impact of a proposed project or activity, and to determine whether that environmental impact falls within acceptable environmental standards.43 Those procedures, once developed and published in the Diario Oficial, will be administered by the applicable Regional Environmental Commission ("COREMA"), or in the case of potential projects affecting more than one region, the National Environmental Commission, CONAMA. Until those regulations are promulgated and published, however, the current laws and regulations will remain in force.

     Although those regulations have not yet been published, Law No. 19.300 provides enough detail to enable foreign investors to anticipate the types of projects affected, and the related procedures that will soon be required, pursuant to this new environmental framework law. Those project approval procedures are summarized below.

     A.      Projects and Activities Requiring Environmental Impact Review

     Law No. 19.300 requires the preparation and submittal of an Environmental Impact Study or an Environmental Impact Declaration for a wide range of projects and activities. These include the following: dikes, dams, reservoirs and similar alterations of natural bodies of water or water courses; high voltage electric transmission lines and substations; electric power plants of more than three megawatts; nuclear reactors and related establishments and installations; airports, truck depots, bus and railway terminals; highways and public roads that can affect protected areas; ports, navigation channels, shipyards and maritime terminals; urban or tourist development projects; regional urban development plans, intercommunal plans, and industrial or real estate projects which modify those plans, or which are implemented in areas declared to be "latent" or "saturated";44 coal, petroleum, gas and other mining development projects, as well as oil pipes, gas pipes, and mining ducts; industrial plants of various types; agroindustries, slaughterhouses, and industrial-size facilities for breeding and dairy production; forestry development and related wood and paper processing industries; projects involving the production, storage, transportation or disposal of substances that are toxic, explosive, radioactive, inflammable, or corrosive; projects of environmental sanitation, including sewage and potable water systems, sanitary landfills, and other systems for the treatment and disposal of industrial liquid or solid wastes; projects located in national parks, national reserves, national monuments, national sanctuaries, and other protected areas; and other types of projects identified therein.45

     In addition, foreign investors and others who propose projects or activities not identified in Article 10 of Law No. 19.300 may voluntarily provide either an Environmental Impact Declaration, or an Environmental Impact Study, as appropriate.46

     The Environmental Impact Declarations and Environmental Impact Studies must be submitted to the COREMA responsible for the region where the project or activity will be located. In the event a project or activity could have an environmental impact in more than one region, an appropriate Declaration or Study must be filed with the Executive Director CONAMA.47

     B.      Environmental Impact Study

          1.     Potential Effects Requiring a Study

     An Environmental Impact Study is required if the proposed project or activity will result in any one of the following: risk to the health of the affected population due to the quantity of effluents, emissions or residues; significant adverse effects on the quantity and quality of the natural renewable resources, including the soil, water and air; resettlement of human communities, or the significant alteration of the way of life and customs of the affected human population; establishment of the project or activity in proximity to protected locations, resources or areas susceptible of being affected, as well as the environmental value of the territory in which the project or activity will be located; significant alteration, in magnitude or duration, of the scenic or tourist value of the affected zone; or, the alteration of monuments, sites of anthropological, archaeological, or historical value, and, in general, locations deemed to belong to the cultural patrimony.48

          2.     Required Contents of Study

     The Environmental Impact Study must include the following: a detailed description of the project or activity; the environmental baseline of the area to be affected by the project; a detailed description of the effects, characteristics, or circumstances referenced in Article 11 of Law No. 19.300 which gave rise to the requirement for the Environmental Impact Study; a description of the anticipated environmental impact of the project or activity and an evaluation of that anticipated impact, including potential risks; measures that will be taken to minimize the adverse effects of the project or activity, including restoration activities where applicable; a follow-up plan addressing the relevant environmental variables that gave rise to the Environmental Impact Study; and a compliance plan concerning applicable environmental legislation.49

          3.     Procedures for Review and Approval of Study

     Although Law No. 19.300 requires the Ministry of the General Secretariat of the Presidency to prepare and implement regulations for the review and evaluation of the Environmental Impact Study, the law requires that those regulations at a minimum provide: a list of environmental permits by sector, including the requirements for obtaining those permits and the technical and formal content required for substantiating compliance; detailed requirements for the minimum contents of the Environmental Impact Studies; and detailed administrative procedures for reviewing, approving and rejecting the Environmental Impact Studies, as outlined in Article 14 of the law.50

     The law requires the Regional or National Environmental Commission to issue a decision within 120 days of receipt of the Environmental Impact Study. A favorable decision will be accompanied by all environmental permits or decisions required from other governmental agencies. In the event the Regional or National Environmental Commission does not obtain any sectorial or environmental permit or approval required within the 120-day period, the appropriate Commission shall request, from the relevant governmental agency, the issuance of the permit or decision within a 30-day period. If that term lapses before a response from the appropriate governmental agency, the permit or approval will be deemed to have been given.51

     The Commission may request clarifications and additional information, during which the 120-day period will be suspended. Once the clarification or additional information is provided, the period will begin to run again.52 Provisional authorization, for the initiation of the project or activity during the review period, can be obtained if the interested party submits, together with the Environmental Impact Study, an insurance policy covering the risk of potential damage to the environment.53

     Failure of the Regional or National Commission to issue a decision within these time periods will result in the automatic approval of the Study.54 In general, the Environmental Impact Study must be approved if it complies with relevant environmental regulations, taking into account both the potential impact (identified pursuant to Article 11 of the law) and responsive measures for mitigation, compensation, or reparation.

     In the event of an unfavorable decision (denial or the imposition of conditions or requirements considered to be unreasonable), the resolution issued by the Regional or National Environmental Committee must identify the grounds for the denial, as well as the specific requirements that must be met in order for such a project or activity to be approved.55 Such an unfavorable decision may be appealed by filing a claim with the Directive Council of CONAMA within thirty days of notification of the adverse decision. The Directive Council then has sixty days to issue a final determination. This final determination, if adverse, must be appealed within thirty days to the competent civil court,56 in accordance with normal judicial procedures.57 The law provides for similar review, evaluation and appeal procedures for public sector projects and activities.58

     C.      Environmental Impact Declaration

     Projects or activities that do not require an Environmental Impact Study, but which are still likely to affect the environment, require an Environmental Impact Declaration. This Declaration must be submitted in the form of an affidavit declaring that the project or activity will be in compliance with relevant environmental legislation.59 The Regional or National Environmental Commission then has a period of sixty days in which to respond to the Declaration, with additional time permitted to enable a response to requests for clarifications or additional information.60

     In the event that sixty-day period lapses before related governmental agencies have provided all required sectorial permits or authorizations for the proposed project or activity, the Regional or National Environmental Commission, at the request of the interested party, shall require such permits or authorizations within a period of thirty days. If there is no response within those thirty days, the proposed project or activity shall be deemed to have received the required permit or authorization.61

     In the event an Environmental Impact Declaration is rejected (for failure to correct errors, omissions or discrepancies, or because the Commission has determined that a Study is required rather than a Declaration62 ), the aggrieved party has thirty days to file a claim with the Executive Director of CONAMA. Subsequent appeal procedures are similar to those for the rejection of a Study, as explained above.63

     In sum, although Law No. 19.300 provides the framework required for an effective environmental impact review procedure, it is clear that the implementing regulations are necessary not only to implement this framework procedure, but also to ensure the degree of transparency needed by foreign investors in order to evaluate prospective projects accordingly.

     D.      Community Participation in the Environmental Impact Evaluation

     Law No. 19.300 also provides for procedures to ensure "the informed participation of the organized community in the qualification process of the Environmental Impact Studies" submitted to the Regional or National Environmental Commissions.64 Although the public can obtain certain information and documents related to the Environmental Impact Study, proprietary technical and financial information may be safeguarded from public access.65

     As outlined by the law, this "community participation" procedure is initiated by publication in the Diario Oficial of an abstract of the submitted Environmental Impact Study, as well as publication of the abstract in a newspaper or journal of the capitol of the region where the project or activity will be located (or a newspaper or journal of national circulation).66 The Regional or National Environmental Commission must also send a copy of the abstract of the Study to the municipalities to be affected by the proposed project or activity.67 Civic organizations and other interested parties have sixty days from the publication of the abstract in which to comment on the Environmental Impact Study.68 The Commission must then consider and respond to those comments. The law provides for an appeal procedure in the event the civic organization or other interested party is not satisfied with that response, although the law makes it clear that this appeal process will not suspend the Commission's approval procedure or result.69

     In the case of Environmental Impact Declarations, the Regional or National Environmental Commission must publish a monthly list of such projects or activities for which Declarations have been received during the proceeding month.70 In addition, the Regional or National Environmental Commission must also send a copy of the Declaration list to the municipalities in which the proposed project or activity will be implemented.71 It is interesting to note that the law does not provide for a comment or appeal procedure for civic organizations or other interested parties affected by a Declaration.72

VI.     SOURCES OF GUIDANCE PENDING PUBLICATION OF THE NEW REGULATIONS

     Although implementing regulations for Law No. 19.300 have not yet been published,73 various drafts of those regulations have been prepared and circulated among the Chilean Ministries represented on the CONAMA Board of Directors, and the publication of those regulations can been expected in the near future. Until those regulations are promulgated and published, however, compliance with the Environmental Impact Statement and Declaration provisions of Law No. 19.300 remains voluntary.74 During this interim period, foreign investors can seek related guidance from at least two sources.

     A.     Presidential Instructions to Public Bodies and Administrative Agents

     The Presidential Instructions to Public Bodies and Administrative Agents ("Instructions")75 provide detailed guidelines to assist Chilean agencies in assessing the environmental impact of investment projects, including procedures for the review and evaluation of Environmental Impact Studies. In addition, the Instructions provide detailed guidance for the preparation of such Environmental Impact Studies.

     These Instructions, and the guidelines they provide, may be followed during the transitional period before the procedures under Law No. 19.300 come into force. Although an Environmental Impact Study currently may not be required under Law No. 19.300, those foreign investors willing to prepare and submit such Studies on a voluntary basis may do so according to the detailed procedures contained in the Instructions.

     Further, these procedures may be imposed by an applicable governmental agency if it determines, pursuant to existing laws and regulations, that the execution of a project under its jurisdiction requires a study of the related environmental impact.

     B.     Standards and Procedures under the Foreign Investor's National Laws

     While some foreign investors voluntarily are abiding by the terms and procedures of Law No. 19.300, and submitting Environmental Impact Studies in accordance with the Instructions, others are applying the environmental standards of their own country, even though such foreign requirements are not enforceable in Chile. The recent World Bank report, for example, noted that Chile's transparent foreign investment regime had "beneficial consequences for the environment through foreign investors who apply the environmental standards of their own country even if they are not legally binding in Chile (for example, in the mining industry)."76

VII.     CONCLUSION

     Law No. 19.300 of 1994 generally has been recognized as a positive and balanced first step in the effort to develop an environmental protection system that is transparent, predictable, and workable. The predictability of foreign investment under Decree Law 600 will be enhanced, however, once detailed implementing regulations for Law No. 19.300 are finalized and published. During the interim period, many foreign investors are seeking assurance of environmental compliance of their proposed projects in Chile on a voluntary basis, in accordance with the Instructions issued in 1993, or in accordance with the environmental laws and regulations of their home countries.

     Law No. 19.300 and its related regulations, once implemented, should also play an important role during the NAFTA accession negotiations among Chile, Canada, Mexico, and the United States. Regardless of the ultimate timetable for the completion of those negotiations, environmental considerations likely will be an area of intense public focus.

     Finally, Chile's emerging environmental protection system, like Chile's many innovative economic programs, may well serve as a model for other countries in the region, for it strikes a reasonable balance in the effort to protect the environment while fostering economic development.

ENDNOTES

1     "Strong Foreign Investment in 1994," 276 Chile Economic Report 10 (1995). Of this 1994 total for materialized foreign investment, $2.53 billion entered the country through Chile's Foreign Investment Statute, Decree Law 600, $407.1 million through Chapter XIV of the Chilean Central Bank's International Exchange Norms, and $1.72 billion through American Depository Receipts ("ADR's"). Authorized foreign investment for 1994 totaled $5.90 billion, an increase of 171.8 percent over the previous year, representing 334 new projects totaling $5.20 billion, and 152 expansions of current projects totaling $704 million. Id.

2     For a summary of the arguments Mexico faced during debates over the NAFTA supplemental accord on the environment, entered into by the United States, Mexico, and Canada, see Foster and Alexander, Prospects of a U.S.-Chile Free Trade Agreement (Dordrecht, The Netherlands: 1994), pp. 11-12.

3     Comisi—n Nacional del Medio Ambiente, hereinafter "CONAMA." CONAMA, created by the Aylwin administration in June of 1990, is responsible for designing and enacting environmental policies and legislation, and creating institutions to promote sustainable economic development. See CONAMA, Repertorio de la Legislaci—n de Relevancia Ambiental Vigente en Chile (June, 1992).

4     "Prospect of Accession to NAFTA Seen as Upping Environmental Ante,"18 International Environment Reporter 90 (February 8, 1995).

5     Ley Sobre Bases Generales del Medio Ambiente, Ley No. 19.300, published in the Diario Oficial de la Repœblica de Chile on March 9, 1994, hereinafter "Law No. 19.300."

6     Decree Law 600 of 1974, hereinafter "Decree Law 600," was amended in 1981, 1985, 1987, 1989, 1990, and 1993, progressively improving the legal framework for foreign investors. See: Law No. 18.065, published in the Diario Oficial on December 10, 1981; Law No. 18.474, published in the Diario Oficial on November 30, 1985; Law No. 18.682, published in the Diario Oficial on December 31, 1987; Law No. 18.840, published in the Diario Oficial on October 10, 1989; Law No. 18.904, published in the Diario Oficial on January 25, 1990; and Law No. 19.207, published in the Diario Oficial on March 31, 1993.

7     Article 4 of Decree Law 600, as amended.

8     Article 4 of Decree Law 600, as amended. The previous capital repatriation period of three years was reduced to one year by the 1993 amendment, Law No. 19.207, published in the Diario Oficial on March 31, 1993.

9     Article 9 of Decree Law 600, as amended.

10     See Article 4 of Decree Law 600, as amended.

11     See Articles 7 and 11 Bis of Decree Law 600, as amended.

12     See Articles 4 and 5 of Decree Law 600, as amended.

13     Article 1 of Decree Law 600, as amended.

14     Articles 16 and 17 of Decree Law 600, as amended.

15     Article 16 of Decree Law 600, as amended.

16     Article 3 of Decree Law 600, as amended.

17     Article 4 of Decree Law 600, as amended.

18     The 1993 amendments also improved the terms of tax invariability. This option of "locking in" a fixed overall income tax rate for a period of 10 years, can now be obtained by the payment of 42 percent tax on profit remittance, reduced in 1993 from the previous rate of 49.5 percent. The usual tax rate for investors who do not choose tax invariability is 35 percent. By paying either the 35 percent or 42 percent tax rate, investors obtain a credit for whatever corporate taxes they have to pay per year, at the current rate of 15 percent. The foreign investor may waive this tax invariability at any time, and become subject to Chile's general tax legislation, involving the same rights and obligations of Chilean investors. The waiver of tax invariability, however, is irrevocable. See Article 7 of Decree Law 600, as amended.

19     Article 19, No. 8, of the Constituci—n Pol’tica de Chile de 1980 provides as follows: "The Constitution assures all persons: . . . the right to live in an environment free of contamination. It is the duty of the State to ensure that this right is not affected and to protect the preservation of nature. The law may establish specific restrictions on the exercise of determined rights or liberties in order to protect the environment."

20     U.S. General Accounting Office, "U.S.-Chilean Trade," GAO/CGD 94-198, September 1994, p. 38.

21     As explained herein, pending the enactment of implementing regulations for Law No. 19.300, the current regulatory system is still in force.

22     Corporaci—n Nacional Forestal, hereinafter "CONAF."

23     See Decree Law No. 701 of 1974, as amended by Decree Law No. 2.565 of 1979, and its implementing regulations, Decree No. 259 of 1980.

24     Supreme Decree No. 4363 of 1931.

25     Law No. 18.362 of 1984.

26     Chile is officially divided geographically into twelve numbered regions, in addition to the Santiago metropolitan region.

27     See, for example: Decree Law No. 3.557 of 1980, concerning contamination of agricultural lands; Law No. 18.378 of 1984, concerning conservation of agrarian lands threatened by erosion; Law No. 3.133 of 1916, concerning the discharge of industrial wastes; Decree No. 5 of 1983, concerning the discharge of contaminants into rivers and other water channels; Supreme Decree No. 1 of 1992, concerning the prevention and control of aquatic pollution; Supreme Decrees 474 and 476 of 1977, concerning the prevention of water pollution; Ministry of Public Health Resolution 1215 of 1978, concerning the prevention and control of air pollution; Supreme Decree No. 144, concerning the National Health Service's evaluation of potential air pollution and related prevention measures; Supreme Decree No. 78 of 1978, concerning minimum environmental and health conditions on worksites; Decree No. 94 of 1991, concerning environmental and safety requirements for transportation of timber products; and a number of other laws and regulations concerning occupational health and safety, pollution occurring during navigation in harbors, rivers and lakes, and many other areas of concern that may arise in planning and implementing such a project.

28     Signed at Santiago, and entered into force, February 27, 1992. U.S. Treaties and Other International Acts Series 11883.

29     "Chile, Canada Sign Environmental Agreement," Environment Watch Latin America, Vol. 5, No. 3 (March 1, 1995).

30     Chile - Managing Environmental Problems: Economic Analysis of Selected Issues, World Bank Publication No. 13061-CH (1995).

31     Articles 32-33 of Law No. 19.300.

32     Id. See also Article 40 of Law No. 19.300.

33     Article 32 of Law No. 19.300.

34     Articles 41-48 of Law No. 19.300.

35     Article 47 of Law No. 19.300.

36     Articles 34-39 of Law No. 19.300.

37     Articles 51-59 of Law No. 19.300. See also Article 3 of Law No. 19.300, which provides as follows: "Everyone who negligently or willfully causes environmental damage, shall be obligated to repair it, at his cost, restoring it materially, if possible, and indemnify in accordance with the law, without prejudice to the penalties indicated in the law."

38     Articles 51-59 of Law No. 19.300.

39     Article 56 of Law No. 19.300.

40     Articles 60-63 Law No. 19.300. See also Articles 54-59 of Law No. 19.300.

41     Articles 66-68 of Law No. 19.300.

42     Articles 69-92 of Law No. 19.300.

43     Articles 8-25 of Law No. 19.300.

44     Law No. 19.300 defines a "latent zone" as one "in which the measurement of the concentration of contaminants in the air, water or soil falls between 80 percent and 100 percent of the value of the respective norm of environmental quality." It defines a "saturated zone" as that "in which one or more of the rules of environmental quality are exceeded." See Article 2 of Law No. 19.300.

45     See Article 10 of Law No. 19.300.

46     Article 9 of Law No. 19.300.

47     Id. In addition, CONAMA serves as coordinator and national representative for government agencies on environmental projects involving international financing and assistance.

48     Article 11 of Law No. 19.300.

49     Article 12 (a)-(g) of Law No. 19.300.

50     Article 13 of Law No. 19.300. Article 14 requires that the administrative procedure include consultation and coordination with all applicable governmental agencies, related time periods for this internal review, mechanisms for clarification and request for additional information in the Environmental Impact Studies, and procedures for notice to interested parties.

51     Article 15 of Decree Law No. 19.300.

52     Article 16 of Decree Law No. 19.300. Article 16 also provides for a one-time extension of 60 days for this review period.

53     Article 15 of Law No. 19.300.

54     Article 17 of Law No. 19.300.

55     Article 16 of Law No. 19.300.

56     Article 20 of Law No. 19.300.

57     Articles 20 and 60-63 of Law No. 19.300.

58     Articles 22-25 of Law No. 19.300.

59     Article 18 of Law No. 19.300.

60     Articles 18 and 19 of Law No. 19.300.

61     Article 18 of Law No. 19.300.

62     Article 19 of Law No. 19.300.

63     Articles 19-20 of Law No. 19.300. In the event an Environmental Impact Declaration is declared inadmissible, or an Environmental Impact Study is rejected, the interested party may also submit a new Declaration or Study, as required, for the project or activity. Article 21 of Law No. 19.300.

64     Article 26 of Law No. 19.300.

65     Article 28 of Law No. 19.300.

66     Articles 26-31 of Law No. 19.300.

67     Article 31 of Law No. 19.300.

68     Article 29 of Law No. 19.300.

69     Id.

70     Article 30 of Law No. 19.300.

71     Article 31 of Law No. 19.300.

72     See Articles 26-31 of Law No. 19.300.

73     As of October 6, 1995.

74     Transitory Article 1 of Law No. 19.300 provides as follows: "The system of evaluating environmental impact, regulated by Section 2 of Title II of this law, shall become effective once the regulations referred to in article 13 have been published in the Diario Oficial."

75     Issued by the President of the Republic of Chile on September 30, 1993.

76     Chile - Managing Environmental Problems: Economic Analysis of Selected Issues, World Bank Publication No. 13061-CH (1995).



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