YORMARY TORRES

Group: 212032-49
Date: 16 October

1 OTHER CRITERIA -
ROYALTIES
Royalties are an economic consideration
received by the State for the exploitation
of non-renewable natural resources,
which can be collected in cash or in
2 kind.

Royalties are the payment made by

oil and mining companies to the
Colombian State, for exploiting
deposits of a non-renewable
natural resource. Oil companies
deliver to the state between 8%
and 25% of the value of crude oil
production. They are used to solve
the unsatisfied basic needs of the
departments and municipalities
such as basic education, health,
drinking water and sewerage,
among others, and to finance large
projects that bring progress to the
region.

General System of Royalties (SGR): is

the new scheme implemented by the
national government to determine the
distribution, objectives, purposes,
administration, execution, control,
efficient use and destination of the
income from the exploitation of non-
renewable natural resources,
specifying the conditions of
participation of its beneficiaries.

Regarding the royalty method, the state is

really the one who should put them to
good use, because for companies in the oil
and mining sector it is more a tax for
exploiting the sector, therefore the state is
the one who is obliged to create better
opportunities with them.

NATIONAL OPEN AND DISTANCE UNIVERSITY