On 5 May 2021, a decree amending the Hydrocarbons Law came into effect. Among others, the change allows to condition the attribution and continuity of permits to carry out hydrocarbon operations on the compliance with provision of a level of infrastructure defined by the Ministry of Energy. It also grants the "Secretaría de Energía y la Comisión Reguladora de Energía" with the power to suspend and to revoke hydrocarbon concessions in case of imminent danger to national security, energy security, or the national economy. Mexican authorities are also granted the power to temporarily occupy or intervene in oil facilities to guarantee the interests of the nation.
"Article 1.- This Law regulates Articles 25, fourth paragraph; 27, seventh paragraph and 28, fourth paragraph of the Political Constitution of the United Mexican States, in matters of Hydrocarbons.
The Nation is the direct, inalienable and imprescriptible owner of all Hydrocarbons found in the subsoil of the national territory, including the continental shelf and the exclusive economic zone located outside and adjacent to the territorial sea, in layers or deposits, whatever their physical state. [...]
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Article 2.- The purpose of this Law is to regulate the following activities on national territory:
I. Surface Exploration and Reconnaissance, and Exploration and Extraction of Hydrocarbons;
II. The treatment, refining, sale, commercialisation, transport and storage of petroleum;
III. The processing, compression, liquefaction, decompression and regasification, as well as the transport, storage, distribution, marketing and sale to the public of natural gas;
IV. The transport, storage, distribution, marketing and sale to the public of petroleum products; IV. Petroleum products, and
V. Transport by pipeline and Storage linked to pipelines, of Petrochemicals. Petrochemicals.
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Article 53.- The assignment of permits or of the performance of regulated activities under such permits may only be carried out with the prior authorisation of the Ministry of Energy or the Energy Regulatory Commission, as the case may be, provided that the permits are in force, that the assignor has complied with all its obligations, as well as that the assignee meets the requirements to be a Permit Holder and undertakes to comply with the obligations set forth in such permits in their terms. permits.
The Ministry of Energy or the Energy Regulatory Commission, depending on the permit in question, shall resolve the assignment request within ninety calendar days from the day following receipt of the request. If no resolution is issued by the Ministry of Energy or the Energy Regulatory Commission, as the case may be, within the established period, it shall be understood to be in the sense of the following established, it shall be understood to be negative.
Any transfer made without complying with the provisions of this article shall be null and void. null and void.
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Article 57.- In relation to the permits referred to in this Law, the issuing authority may carry out temporary occupation, intervention or suspension in order to guarantee the interests of the Nation, on the understanding that the rights of third parties shall be safeguarded.
For the continuity in the operation of the activities covered by the permit, the authority may contract State productive companies for the management and control of the occupied, intervened or suspended installations, intervened or suspended installations.
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Article 59 Bis.- The Ministry of Energy and the Energy Regulatory Commission may, within the scope of their respective competences, suspend permits issued under the terms established in this Law, when an imminent danger to national security, energy security or the national economy is foreseen. for the national economy. [...]" (Hydrocarbons Law, implemented 11 August 2014, last amended 20 May 2021, Articles, 1, 2, 53, 57, 59 bis [google translation])
Hydrocarbons Law, implemented 11 August 2014, last amended 20 May 2021
[<a href="https://www.diputados.gob.mx/LeyesBiblio/pdf/LHidro_200521.pdf">Law</a>]