PUBLICATION OF DECREE BY MEANS OF WHICH ADMINISTRATIVE FACILITIES FOR OBTAINING NEW CONCESSIONS OVER NATIONAL WATERS.

PUBLICATION OF DECREE BY MEANS OF WHICH ADMINISTRATIVE FACILITIES FOR OBTAINING NEW CONCESSIONS OVER NATIONAL WATERS.

On 23 March 2018, the “Decree by means of which administrative facilities are set for obtaining new concessions or assignments over national waters to users that hold concession titles with a validity term expiring as from 1 January 2004,” (herein after referred to as “Decree”), was published in the Federal Official Gazette, same that entered into force on 26 March 2018 and will be valid until next 31 December 2018.

The Decree of Administrative Facilities foresees the possibility to grant new concessions or assignments on behalf of, among others, those users that:

1. Did not request the extension of their concession titles in the terms prescribed by the National Waters Law, this is, no later than six months prior to the extinction of the respective title.
2. Had filed their extension application after the terms prescribed by Law to do so and which are pending to be answered.
3. Had ben subject of partial cancellation pronouncements for what regards the volumes granted under concession and said cancellation rulings are definite, solely for what refers to the volume subject of cancellation.

In comparison to similar decrees published in recent year, the Decree does not foresee any type of penalty concerning reduction of volumes granted under concession for the users benefiting from the administrative facilities foreseen therein.

Once the validity period of the Decree of Administrative Facilities concludes, the National Water Commission will proceed to request from the Public Registry of Water Rights to subscribe the extinction of all those concession titles of which the application foreseen in said decree was not filed.

The ​​Environmental Law Practise of the firm will be pleased to provide any additional information on the topic.

SINCERELY

Mexico City, April 3rd, 2018