PUBLICATION OF THE NEW FEES FOR THE DETERMINATION AND PAYMENT OF THE NON-CANCELLATION GUARANTEE FEE

Mexico City, October 14^th, 2019.

Last October 9, 2019, the Non-Tax Revenues Policy Unit of the Income Undersecretary of the Ministry of Treasure and Public Credit, published, in the Federal Official Gazette, Official Notice No. 349-B-521 by means of which it authorizes the National Water Commission (“CONAGUA”), under the exploits figure, the fees per cubic meter necessary for the determination and payment of the non-cancellation guarantee fee.

As per the National Water Act, CONAGUA is empowered to declare the total or partial cancellation of the national waters granted under concession or assignment, when the holders do not exploit, use or enjoy them for a two consecutive year period. Concessionaires or assignees may decide to pay the non-cancellation guarantee fee to avoid for CONAGUA to declare the cancelation of the unused volumes of water.

Below the listing of the new amounts of the fees for the determination and payment of the non-cancellation guarantee fee:

As long as the exploits for the 2020 financial year are not authorized, those in force as per December 31, 2019 will apply, multiplied by the restatement factor foreseen in the Federal Revenue Act for the 2020 financial year, applicable for the month in which the exploit was authorized.

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