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ARTICLE · 18 MAY 2021

Amendment To Hydrocarbons Law Is Partially Suspended

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The suspensions are the result of the preliminary measures granted by judges in an amparo trial that will decide whether the new provisions are constitutional.

MexicoEnergy and Natural Resources
Vera De Brito De Gyarfas
Vera De Brito De Gyarfas
Francisco Mendez
Francisco Mendez
Claudia Ramos
Claudia Ramos
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Two district judges1 have temporarily suspended certain provisions of the amendment to the Hydrocarbons Law published in the Federal Official Gazette (Diario Oficial de la Federación,  "DOF") on May 4, 2021 (the "Amendment").

The suspensions are the result of the preliminary measures granted by judges in an amparo trial that will decide whether the new provisions are constitutional. The challenged Amendment contains the following key changes:

(a)  An addition to Article 51 now requires permit holders to prove that they have the required minimum hydrocarbons storage capacity required by the Ministry of Energy (SENER).

(b)  Since it was first enacted, the Hydrocarbons Law gave regulators the power to occupy the permit holders' facilities due to non-compliance with technical conditions of the permit, and authorities could contract with private companies to ensure the continuity of activities. A change to Article 57 (now suspended) only allows contracting with

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