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Special participation is a special financial compensation payable by concessionaires only in caseof substantial production volumes or high profitability. It is payable per field of a given concessionarea as from the quarter on which the respective production begins.The payment for area occupation and retention is due on an annual basis. It is specified in theconcession contract and assessed per square kilometer of the block.Finally, if the awarded exploration block is located onshore, a payment must be made to thelandowners at a rate that may vary from 0.5% to 1% of the oil and natural gas production, atANP's discretion.24.7. New regulatory framework: The Pre-SaltRecently, Law 12,351/2010 (“Pre-Salt Act”) introduced a new regulatory framework for theexploration and production of oil, natural gas and other fluid hydrocarbons located in the pre-saltlayer and other areas designated as strategic. These areas are subject to a production sharingregime. The Pre-Salt Act assigned new duties to the ANP, MME and CNPE under this newregime. It also created a social fund to invest the federal government's revenues from the pre-saltfields.Two other laws further regulate the sector. Law 12,304/2010, which authorized the creation ofPré-Sal Petróleo S.A. (PPSA) and defined the roles of the state-owned company that will act onbehalf of the government to manage the production sharing agreements between the Ministry ofMines and Energy and oil companies and the contracts of sale of oil and natural gas from thepre-salt areas.Law 12,276/2010, in turn, authorized the onerous assignment by the federal government toPetrobras of the right to carry out oil exploration and extraction activities in pre-salt areas with upto 5 billion barrels of oil equivalent, in return for the government's right to buy additional shares inPetrobras.24.8. Pré-Sal Petróleo S.A. (PPSA)Decree 8,063 of August 1 st , 2013, created Empresa Brasileira de Administração de Petróleo eGás Natural S.A. (Pré-Sal Petróleo S.A. or PPSA, for its acronym in Portuguese), a state-ownedcompany in the form of a closed corporation (sociedade anônima de capital fechado) linked tothe Ministry of Mines and Energy.124