On October 9, 2019, Mexico’s Deputy Ministry of Revenue (Subsecretaría de Ingresos) of the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público, “SHCP”) published the Official Letter number 349-B-521 (the “Official Letter”) on the Federal Official Gazette (Diario Oficial de la Federación). Pursuant to applicable Mexican regulations, a water concession title may be totally or partially cancelled if the title holder ceases to use or exploit the totality of the water volumes authorized under such concession for a period of two consecutive years.

With such determination, concessionaires and title holders for the use and exploitation of national waters are now aware of the guarantee quotas to avoid the expiration of national water rights when the volume of water granted is not used for two consecutive years.

To read the full GT Alert titled “Mexico’s National Water Law – The Ministry of Finance and Public Credit Authorizes the Payment of Government Fees to Avoid Reduction or Cancellation of Authorized Water Volumes,” click here.