LEGAL UPDATE October, 2014 ISSUANCE OF SECONDARY LEGISLATION REGULATIONS On October 31, 2014 the various regulations and regulatory policies that will contribute to the implementation of the different laws on energy matters issued and amended on August 11, 2014 (the “Secondary Legislation”), as a result of the Decree which amended and added articles 25, 27, and 28 of the Political Constitution of the United Mexican States (Constitución Política de los Estados Unidos Mexicanos) (the “Energy Reform”), were published in the Official Federal Gazette (Diario Oficial de la Federación). The Executive Branch issued the following regulations in order to provide for the strict compliance with the Secondary Legislation at an administrative level. Oil and Gas Revenue Law Regulations (Reglamento de la Ley de Ingresos sobre Hidrocarburos); Internal Regulations of the National Agency of Industrial Safety and Environmental Protection (Reglamento Interior de la Agencia Nacional de Seguridad Industrial y de Protección al Medio Ambiente del Sector Hidrocarburos); Electric Industry Law Regulations (Reglamento de la Ley de la Industria Eléctrica); Internal Regulations of the Ministry of Energy (Reglamento Interior de la Secretaría de Energía); Regulations of Petroleos Mexicanos Law (Reglamento de la Ley de Petróleos Mexicanos); Geothermal Energy Law Regulations (Reglamento de la Ley de Energía Geotérmica); Regulations of the Oil and Gas Law (Reglamento de la Ley de Hidrocarburos); Regulations of the activities referred to in Chapter Three of the Oil and Gas Law (Reglamento de las actividades a que se refiere el Título Tercero de la Ley de Hidrocarburos); and Regulations of the Energy Regulatory Commission Law (Reglamento de la Ley de la Comisión Federal de Electricidad). Also, the following decrees amending the existing regulatory instruments which are relevant for the development of the energy sector were published: Decree amending and supplementing various provisions of the Public Partnerships Law Regulation (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley de Asociaciones Público Privadas); Decree amending and supplementing various provisions of the Federal Budget and Treasury Accountability Law (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley Federal de Presupuesto y Responsabilidad Hacendaria); Decree amending and supplementing various provisions of the Internal Regulation for the Ministry of Finance and Public Credit (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento Interior de la Secretaría de Hacienda y Crédito Público); Decree amending and supplementing various provisions of the Regulations of hte General Law for Sustainable Forestry Development (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley General de Desarrollo Forestal Sustentable); Decree amending and supplementing various provisions of the Regulations of the General Law of Ecological Balance and Environmental Protection on Environmental Impact Assessment (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley General del Equilibrio Ecológico y la Protección al Ambiente en Materia de Evaluación del Impacto Ambiental); Decree amending and supplementing various provisions of the Regulations of the General Law of Ecological Balance and Environmental Protection regarding prevention and Control of Air Pollution (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley General del Equilibrio Ecológico y la Protección al Ambiente en Materia de Prevención y Control de la Contaminación de la Atmósfera); Decree amending and supplementing various provisions for the Regulations of the General Law for Prevention and Integral Waste Management (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley General para la Prevención y Gestión Integral de Residuos); Decree amending and supplementing various provisions of the Regulations of the General Law of Ecological Balance and Environmental Protection on Environmental Zoning(Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley General del Equilibrio Ecológico y la Protección al Ambiente en Materia de Ordenamiento Ecológico); Decree amending and supplementing various provisions of the Regulations of the General Law of Ecological Balance and Environmental Protection regarding Emissions to the Atmosphere and Transfer of Pollutants(Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley General del Equilibrio Ecológico y la Protección al Ambiente en Materia de Registro de Emisiones y Transferencia de Contaminantes); Decree amending and supplementing various provisions of the Internal Regulations of the Ministry of Environment and Natural Resources (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento Interior de la Secretaría de Medio Ambiente y Recursos Naturales); Decree amending and supplementing various provisions of the Regulations of the General Law of Ecological Balance and Environmental Protection on Self-Regulation and Environmental Audits (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley General del Equilibrio Ecológico y la Protección al Ambiente en Materia de Autorregulación y Auditorías Ambientales); Decree amending and supplementing various provisions of the Regulations of the Mining Law (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley Minera); Decree amending and supplementing various provisions of the Regulations of the Foreign Investment Law and of the National Registry of Foreign Investment (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras); Decree amending and supplementing various provisions of the Internal Regulations of the Ministry of Economics (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento Interior de la Secretaría de Economía); and Decree amending and supplementing various provisions of the Internal Regulations of the Ministry of Agrarian, Territory, and Urban Development (Decreto por el que reforman, adicionan y derogan diversas disposiciones del Reglamento Interior de la Secretaría de Desarrollo Agrario, Territorial y Urbano). Similarly, in order to implement the provisions of the Secondary Legislation, Guidelines establishing criteria for the granting of Clean Energy Certificates and the corresponding acquisition requirements were issued, and the Decree which amended the executive order of creation of the Mexican Petroleum Institute as a Decentralized Agency (Decreto por el que se reforma el diverso por el que se crea el Instituto Mexicano del Petróleo como Organismo Descentralizado) published on August 26, 1965, were issued. The issuance of the aforementioned regulatory instruments represents the ongoing progress towards the full implementation of the Energy Reform; now, the issuance of certain regulatory instruments that will complement the provisions published to this date, and which include the Rules of the Electric Industry Market (Reglas del Mercado de la industria eléctrica), the General Conditions for the Provision of the Public Service of Transmission and Distribution of Electric Power (Condiciones Generales para la prestación del Servicio Público de Transmisión y Distribución de Energía Eléctrica), and the administrative contracting procedures of Petroleos Mexicanos (disposiciones administrativas de contratación de Petróleos Mexicanos), among other regulatory instruments, are pending issuance, once such instruments are issued and duly published, they will complete the regulatory legal framework on energy matters for all activities involving the energy industry in Mexico. If you require additional information, please contact your entrusted partner or with any of the following lawyers of our Firm: Mexico City Office: Lic. Juan Carlos Machorro G., [email protected] (Partner) Lic. Gloria Park T., [email protected] (Partner) Lic. Antonio Massieu A., [email protected] (Associate) Lic. Cecilia Sarabia D., [email protected] (Associate) Tel: (+52 55) 5279-5400 Monterrey Office: Lic. Jorge Barrero, [email protected] (Partner) Tel: (+52 81) 8133-6000 Tijuana office: Aarón Levet V., [email protected] Phone: (+52 664) 633-7070 Queretaro office: José Ramón Ayala A., [email protected] Phone: (+52 442) 290-0290