The Official Gazette dated February 27, 2009 published the Executive Decree No. 2 of January 14, 2009 by which environmental regulations for the quality of the soil for different uses are established, which is of obligatory compliance for all private, public, or mixed companies whose activity represents a risk for human health or the ecosystem.

Besides from establishing the regulations for the quality of the soil, this Executive Decree No. 2 in its article 4 establishes that the holders (term not defined in the regulation) of the "potentially dangerous activities" indicated in the Annex 1 of said decree are obliged to submit to the National Environmental Authority (ANAM), within a term not greater than two (2) years beginning with the enactment  of the decree, a PRELIMINARY REPORT REGARDING THE SITUATION OF THE SOIL which includes the chemical analysis of the PH, organic matter, and the microbiologic analysis of the dehydrogenase activity; whose content is regulated by said decree.

The purpose of the PRELIMINARY REPORT REGARDING THE SITUATION OF THE SOIL is to determine the possibility that a significant contamination of the soil is produced, as well as the actions taken regarding the remediation to the soil

The Executive Decree No. 2 establishes that other environmental studies regarding the soils under special circumstances must be drawn and in the periods established in said regulation, establishing the obligations and environmental measures with respect to the soils.

The Annex 1 indicates the potentially contaminating activities whose holders are obliged to comply with the dispositions of the Executive Decree No. 2 and the following are mentioned among them:

1. Fabrication of products from petroleum refinery and oil and nuclear fuel;
2. Elaboration of food and beverage products;
3. Construction: preparation of lands, construction of complete buildings or parts of buildings, works of civil engineering; refurbishment of buildings, termination of buildings, demolition;
4. Recycling of metallic and non-metallic waste and garbage;
5. Electricity, gas, vapor, and hot water supply.

This note is prepared as general information to our customers and other interested parties and does not constitute legal advice.  For more details you can address your questions to ARIAS FABREGA & FABREGA, at panama@arifa.com  or call (507) 205-7000.