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Publication of the Administrative Provisions for the Social Impact Assessment in the Energy Sector in the FOG

June 01, 2018

Publication of the Administrative Provisions for the Social Impact Assessment in the Energy Sector in the FOG
 
I. Introduction:
Pursuant to the article 120 of the Electricity Industry Law, those interested parties in obtaining permits or authorizations to develop hydrocarbons and electricity industry projects shall submit before the Ministry of Energy (the “ME”) a Social Impact Assessment (the “SIA”) which shall contain the identification, characterization, prediction and assessment of the social impacts that could be caused as result of their activities, as well as the corresponding mitigation measures.

II. Background:
On March 6, 2015, the ME submitted before the National Commission for Regulatory Improvement (the “NCRI”, before the Federal Commission for Regulatory Improvement), which afterwards published the preliminary draft of the Administrative Provisions for the Social Impact Assessment in the Energy Sector (the “Provisions”) in the NCRI’s electronic system

On May 21, 2018, the NCRI published in its electronic system the final opinion to the preliminary draft to the Provisions, in which it ordered to continue with the necessary formalities for its official publication in the Federation Official Gazette (“FOG”).

Finally, on June 1, 2018 the Provisions were published in the FOG, entering into force on the day after their publication.
III. Projects:
The SIA shall be submitted regarding the following energy projects:

a. Electricity:

1. Generation of electricity.
2. Transmission and distribution of electricity.

b. Hydrocarbons:

1. Maritime surface exploration;
2. Terrestrial seismic surface exploration;
3. Exploration and extraction of hydrocarbons in assignment or contractual areas;
4. Petroleum treatment and refinement;
5. Transportation of hydrocarbons, petroliferous and petrochemicals;
6. Storage of hydrocarbons, petroliferous and petrochemicals;
7. Distribution of natural gas and petroliferous;
8. Compression, liquefaction, decompression and regasification of natural gas, and
Delivery to the public of natural gas and petroliferous.

IV. Content:

The Provisions integrates a guide regarding the procedure for the SIA, containing the minimum and essential requirements that must be accomplished for its preparation and filing, as well as the procedural elements that the ME shall fulfil for its assessment, opinion, resolution and revision.

The Provisions are intended to facilitate the filing of the SIA, as well as to reduce the fallibility in its preparation and to accelerate the administrative procedure for its filing, assessment, opinion, resolution and revision.

The essential requirements for the preparation of the SIA, among others, includes the following concepts:

a. General information of the project.
b. Technical description and stages of the project.
c. Geographical location, land use, locality and zone of the project.
d. Surface required.
e. Determination of the areas of influence.
f. Analysis of demographic, social and cultural indicators.
g. Identification of the communities located in the areas of influence of the project.
h. Identification, characterization, prediction and assessment of the social impact of the project, either positive and negative.
i. Preparation of a social management plan
j. If case, preparation of an executive summary of the project.
k. If case, the preparation of a communication program.
l. If case, the preparation of a program for the implementation of prevention, mitigation, compensation measures and extension of the corresponding social impact.
If case, the preparation of an investment program.


V. Application form:

The content of the SIA will depend of the application form applicable, according to the activities to develop.

a. Application Form A:

• Delivery of petroliferous to the public through a gasoline and diesel service station.
• Delivery of natural gas and liquefied petroleum gas to the public through a service station.
• Delivery of natural gas and liquefied petroleum gas to the public through an outlet warehouse.
• Compression and decompression of natural gas.
• Public electricity distribution services (extensions not greater than a radius of 2 kilometers).
• Generation of electricity within industrial, productive, commercial and / or operating services, with a capacity equal to or less than 10 MW.



b. Application Form B:

• Terrestrial seismic surface exploration non-invasive or not involving infrastructure.
• Distribution by pipelines of natural gas and petroliferous.
• Distribution of petroleum products through a distribution plant.
• Pipeline transportation of hydrocarbons, petroliferous and petrochemicals with length less or equal to 10 km.
• Distribution and transportation of hydrocarbons and petroliferous different than by pipelines.
• Public transmission of electricity services with location in zones or industrial parks.
• Generation of electricity with a capacity equal or less than 10 MW, except hydroelectric projects; or projects of generation of electricity with a capacity greater than 10 MW, and less than 250 MW, if they are located within industrial, productive, commercial and / or operation services.

c. Application Form C:

• Maritime surface exploration.
• Terrestrial seismic surface exploration invasive or that involves infrastructure.
• Public electricity transmission and distribution services.
• Storage of natural gas and petroliferous.
• Liquefaction and regasification of natural gas.
• Transportation by pipelines of hydrocarbons, petroliferous and petrochemical with a length greater than 10 km and less than 100 km.
• Generation of electricity through solar radiation with a capacity greater than 10 MW and less than 200 MW.
• Generation of electricity through a hydraulic power plant with a capacity of less than 80 MW.
• Generation of electricity through a wind power plant with a capacity greater than 10 MW and less than 100 MW.
• Generation of electricity through a cogeneration and thermal power plant with a capacity greater than 10 MW and less than 300 MW.
• Generation of electricity located within industrial, productive, commercial and / or operation services, with a capacity equal or greater than 250 MW.
• Other electricity generation activities through clean energies with a capacity greater than 10 MW and less than 200 MW.


d. Application Form D:

• Treatment and refinement of petroleum.
• Transport by pipelines of hydrocarbons, petroliferous and petrochemicals with length equal or greater than 100 km.
• Exploration and extraction of hydrocarbons in contractual or assignment areas.
• Generation of electricity through solar radiation with a capacity equal or greater than 200 MW.
• Generation of electricity through hydraulic power plant with a capacity equal or greater than 80 MW.
• Generation of electricity through a wind power plant with a capacity equal or greater than 100 MW.
• Generation of electricity through a cogeneration and thermal power plant with a capacity equal or greater than 300 MW.
• Other activities of generation of electricity by clean energies with a capacity equal or greater than 200 MW.

 
Alejandro Ripoll González
[email protected]
Guadalupe Esparza Sánchez
[email protected]
Diego Álvarez Ampudia
[email protected]
Alfonso J. Araujo Azuara
[email protected]
Irving Lamas Carvajal
[email protected]
Rodrigo Acuña Gorozpe
[email protected]
Sandra Bernal de Loera
[email protected]
 
IMPORTANT: The information here contained is of general nature and for informative purposes only. Please consider that what is here stated does not necessarily apply to individual circumstances. We strongly recommend not to perform any activity based on this information without the professional assistance of our lawyers.
 
Our Infraestructura, Energía y Medio Ambiente Practice Team can gladly support you in the following topics:
• Structuring and executing energy & infrastructure projects
• Negotiation and execution of D&B Agreements (design-build), EPC (engineering-procurement-construction), PMC (Project management), BT (built-transfer) and BOT (built-operation-transfer)
• Public-Private Partnerships
• Participation in Public and Private Tenders
• Alternative Dispute Resolution
• Permits and Licenses
• Permits and Licenses
• Project Finance
• Regulation & Compliance

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