On April 6, 2020 the Energy Regulatory Commission (“CRE”), published in the Federal Official Gazette (“DOF”), the resolution which declares the expiration of 156 (one hundred and fifty-six) distribution permits through distribution plant, transportation by means other than pipelines, retailing and retailing to the public of liquefied petroleum gas, in accordance with article 55, section I, subsection B) of the Hydrocarbons Law (the “Resolution”).
We inform you that on April 6, 2020 the Energy Regulatory Commission (“CRE”), published in the Federal Official Gazette (“DOF”), the resolution which declares the expiration of 156 (one hundred and fifty-six) distribution permits through distribution plant, transportation by means other than pipelines, retailing and retailing to the public of liquefied petroleum gas, in accordance with article 55, section I, subsection B) of the Hydrocarbons Law (the “Resolution”), in accordance with the following:
“Article 55.- Permits will expire if the Permit Holders:
I. They do not exercise the rights conferred in the title of the permit in accordance with the following:
[…]
b) In the absence of a term, for a consecutive period of three hundred and sixty-five calendar days […]”
In this regard, the CRE reviewed and supervised the compliance of the permit holders with their obligations by reviewing the files associated with each of the permits subject matter of the Resolution, observing the absence of information and/or documentation submitted by the permit holders, and warning those who do not comply with their obligations on a regular basis.
Thus, the CRE ordered verification visits to verify the permit holders' compliance with their obligations. During the visit, the CRE found that the permit holders had not begun operations, had stopped providing services or had dismantled the facilities associated with the permit, without having given any notice to this Commission, situation that was observed in each of the addresses authorized in the respective permits.
The permits listed in the Resolution have not recorded activities for more than 365 calendar days, which is why it is included that the permit holders listed; did not exercise the rights derived from the permit title or stopped carrying out the permitted activity.
For more information, please consult the following link:
For any questions or information associated with the publication of the above-mentioned Resolution, please contact our specialists in hydrocarbons issues:
Carlos Antonio Flores Flores.
Partner
Esteban de Jesús Sánchez Borboa.
Associate
