On May 17, 2016, the “Decree through which administrative facilities for the granting of new concessions or assignments of national waters to the users, holders of concession titles expired from January 1st, 2004 onwards” was published in the Federal Official Gazette (DOF for its acronym in Spanish).
The Decree sets forth certain administrative facilities to grant new concession titles to particular parties situated in one of the following conditions:
1.- That they are holders of concession titles of which their validity expired as of January 1st, 2004 and the extension application was not filed.
2.- That they are holders of expired concession titles, granted in areas where the free extraction of national waters is suspended.
3.- That their concession titles have been revoked, extinguished, cancelled for the lack of use (totally or partially) or annulled for reasons attributable to them, as long as the ruling was challenged and the later was solved, definitively, in behalf of the private party’s interests.
Similarly, the Decree sets forth administrative facilities to extend the validity of the concession titles granted on behalf of private parties as long as they fall into one of the following scenarios:
1.- That they are holders of concession titles in force, but that the extension application was not filed for at least six months prior to the expiration date.
In order to obtain the benefits established in the Decree, it is necessary of the private parties to observe and comply all of the requirements set forth in it. In addition, in the event that the granting or the extension of the new concession title or the extension of an existent title is authorized, the National Water Commission is empowered to reduce up to 30% of the volume initially granted under concession on behalf of the private party that decided to cleave to the Decree.
The Decree will be in force from May 18th to December 31st 2016.
The lawyers specialized in matters of national waters at the firm, are at your disposal to further discuss the content of this note.
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Mexico City, May 18th 2016