Supervision authority extends across multiple regulatory bodies including the hydroelectric concessionaire, the Dam Safety Regulatory Body (ORSEP), and the Interjurisdictional Authority of the Limay, Neuquén and Negro River Basins (AIC). ORSEP issued specific recommendations noting that certain pipeline sections will sit below both normal and extraordinary maximum levels of the Mari Menuco reservoir, presenting technical challenges for the state oil company.
Authorization depends on YPF’s strict compliance with Resolution 672/2026 from Neuquén’s Environment and Natural Resources Secretariat, which approved the project’s Environmental Report with binding operational requirements. These include installing safety shutoff valves at water body crossings, securing adequate environmental insurance coverage, and fulfilling a remediation schedule for the LLL-401 environmental incident at Loma La Lata, pending since 2020.
YPF established a sworn guarantee in favor of the hydroelectric concessionaire to secure payment of potential indemnifications for damages arising from construction or environmental remediation work. The company reported that sampling of extracted and treated material showed no concentrations of total petroleum hydrocarbons, BTEX compounds, polycyclic aromatic hydrocarbons, or metals exceeding current guideline levels, requesting authorization for definitive site closure.
Edison Inversiones granted project approval but conditioned work commencement on documented resolution of the outstanding 2020 excavation incident at Loma La Lata. The AIC determined the construction does not significantly affect water management standards or aquatic ecosystem protection norms under the concession contract, though it emphasized YPF must maximize prevention measures in an area classified as having high water sensitivity.
The Neuquén environmental authority’s approval requires YPF to notify start dates, execution timelines, and completion of work, while maintaining onsite copies of environmental reports and approval resolutions. Contractors managing waste must hold Special Environmental Certificates and provincial registrations. Non-compliance may result in license revocation and administrative sanctions.
This article was curated and published as part of our South American energy market coverage.
