Regulations published in 2010 which have an impact on gas activities in Spain are set out below:

• Resolution under which available capacity in basic establishments is published of natural gas for the period between 1 April 2010 and 31 March 2011 (Official State Gazette 29/1/2010).
• Royal Decree 104/2010 under which supply of last resort start-up is regulated, within the natural gas industry (Official State Gazette 26/2/2010).

This Royal Decree establishes the legal system that applies to consumers with the right to make use of the tariff of last resort and introduces the necessary measures applying to the terms indicated in Act 127/2007 (fifth transitory provision), with regard to determining prices that consumers who transitorily do not have a supply contract in force or a commercial operator must pay.

The rights and obligations of last resort suppliers are established, over and above the terms indicated in Article 81 of the Hydrocarbon Sector Act 34/1998. Measures that apply to distributors and commercial operators are also established, in order to ensure the transfer to last resort supply is compatible with boosting competition.

We stress (as indicated in Article 1 of this Royal Decree) that, for all purposes, consumers under the tariff of last resort will be considered consumers on the liberalised market.

• Resolution under which Resolution of 14 March 2010 is modified, the latter indicating specific aspects related to the management of underground storage facilities in the basic grid and the establishment of rules for capacity auctions (Official State Gazette 5/3/2010).
• Royal Decree 197/2010, which has adaptedspecific regulations concerning the hydrocarbon sector to the terms established under Act 25/2009, modifying various acts for adaptation to the law governing free access to service activities and the exercise thereof (Official State Gazette 18/3/2010).

Among other rulings, this Royal Decree modifies the regulation concerning the distribution of oil liquefied gases, approved under Royal Decree 1085/1992, and Royal Decree 1434/2002, which regulates transport, distribution, commercial operations, supply and authorisation of natural gas facilities. These modifications aim to create easier access with regard to carrying out the activities regulated under the modified Royal Decrees.

Administrative authorisation is still required for companies who wish to act as a commercial operator and who hold nationality (the parent company of the group to which it belongs) of a country that is not a member of the EU and which does not recognise similar rights.

• Resolution under which the natural gas tariff of last resort is published (Official State Gazette 31/3/2010).

This resolution is approved and published according to current regulations, indicating that both TUR currently in existence will be reviewed on 1 January, 1 April, 1 July and 1 October. This standard (Order ITC/1660/2009, Article 9) indicates: The variable term will be updated every quarter ………. provided that the raw material cost varies upwards or downwards by more than 2%.

• The reported resolution of 13 May 2010 which called for the coordinated allocation procedure of the natural gas interconnection capacity between Spain and France to be available from 2015, in the MidCat and Irún interconnection points.
• Order ITC/1306/2010, which determines Madrileña Red de Gas, S.A. remuneration, linked to natural gas distribution in certain municipalities of the Community of Madrid (Official State Gazette 20/5/2010).
• Royal Decree 560/2010, which modifies various standards regarding industrial safety to adapt them to Act 17/2009 on free access to service activities, and to Act 25/2009 which modifies various acts for adjustment to the Act on free access to services activities (Official State Gazette 22/5/2010).

Please note that Article 13 modifies Royal Decree 919/2006, which establishes the technical regulation for distribution and use of gaseous fuels and the supplementary technical instructions thereof.

• Order ITC/1506/2010, modifying Order ITC/1660/2009, under which methodology for calculation of the natural gas tariff of last resort is established (Official State Gazette 11/6/2010).

This calculation procedure includes the price resulting from an international auction. Corresponding access tolls are also included, in accordance with principles established under Article 93 of Act 34/1998. Through Order ITC/1506/2010, formulas adapted to the increase of the number of auctions are updated. Some modifications to toll formulas have also been introduced.

• Resolution which awards Escal Ugs S.L. administrative authorisation and public utility recognition of the facilities for the Castor underground storage project (Official State Gazette 15/6/2010).
• Resolution under which the natural gas tariff of last resort is published (Official State Gazette 29/6/2010).

This tariff will become valid from 1 July and will remain in force until 30 September.

• Order ITC/1890/2010, which regulates specific aspects related to third-party access and regulated payments in the natural gas system (Official State Gazette 15/7/2010).

Issues such as decreases in regasification plants, defining decrease rates in various types of gas facilities, carrying out a study on interrupted access, improving measures and applying smart meters and administrative simplification measures are considered in this Ministerial Order, among other components.

• Resolution which awards Enagás administrative authorisation, project approval and public utility recognition, to build facilities related to Addendum 1 of the Algete–Yela pipeline project (Official State Gazette 3/8/2010).
• Resolution which modifies Resolution of 25 July 2006, regulating the conditions related to allocation and the applicable procedure governing interruptible natureof the gas system (Official State Gazette of 6/8/2010).
• Resolution under which the natural gas tariff of last resortis published (Official State Gazette 30/9/2010).
• Resolution which awards Enagás administrative authorisation and project approval to build facilities for the pipeline Duplication of Tivissa–Paterna pipeline, section 3, position 15.18.d and position 15.25.d (Official State Gazette 6/10/2010).

A subsequent resolution awarded Enagás the authorisation to build a pipeline between Ramal and Besós (Official State Gazette 12/10/2010).

• Order ITC/2906/2010 which endorses the annual programme of exceptional facilities and activities for electrical energy and natural gas transmission networks (Official State Gazette 12/11/2010).

Royal Decree 1955/2000 establishes that the yearly schedule of the electrical energy transmission network facilities will be approved annually. The Spanish Ministry believes that extending this obligation to natural gas would also be appropriate (indicating so in Order ITC/2906/2010).

• Resolution which approves the Winter Action Plan for the operation of the gas system (Official State Gazette 16/11/2010).

Mention should be made regarding the fact that the Official State Gazette has continued to publish resolutions corresponding to the maximum sale price of piped LPG, which become valid on the third Tuesday of each month. Moreover, the (quarterly) decision regarding maximum sale price of packaged LPG, in containers with a capacity equal to or exceeding eight kilograms.

• Order ITC/3354/2010, which establishes tolls and royalties linked to third-party access to gas facilities and payment of regulated activities (Official State Gazette 29/12/2010). Valid since 1 January 2011.
• Resolution under which the natural gas tariff of last resort is published (Official State Gazette 29/12/2010). Valid since 1 January 2011.