On May 26, 2021, the notice was published in the Official Gazette of the Federation (“DOF”) informing the general public of the suspension of all effects and consequences arising from Article 57 of the Hydrocarbons Law (the “Law”), as well as of the fourth and sixth transitory articles of the “Decree amending and adding various provisions of the Hydrocarbons Law,” published on May 4, 2021 in the DOF.
Article 57 of the Law that was amended provides that the authority that has issued a permit under such Law may carry out the suspension, temporary occupation or intervention thereof in order to safeguard the interests of the nation, as well as contract exclusively productive State enterprises for the management and control of the suspended facilities. As a result of various amparo proceedings filed by the private sector against such amendment and, specifically, against Article 57 of the Hydrocarbons Law, the Second District Judge in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, residing in Mexico City and with jurisdiction throughout the Republic, ruled to grant a precautionary measure to provisionally suspend the effects of Article 57 of the Hydrocarbons Law. Such suspension was granted by the Second District Judge with general scope, so that it will be effective for all permit holders in the sector. On the other hand, the First District Judge in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications also ruled to grant a precautionary measure for purposes of provisionally suspending the effects of both Article 57 and Article 59 bis of the Hydrocarbons Law, which empowers the authority to suspend the permits granted under the Law when an imminent danger to national security, energy security or the national economy is foreseen. It is important to mention that, although such suspensions have general effects, the Collegiate Circuit Courts could revoke them, so it is essential that permit holders file an amparo proceeding against the amended articles to protect their rights. Likewise, given that the effects and consequences of Article 57 of the Hydrocarbons Law are provisionally suspended, the text of Article 57 of such Law that was in force prior to the amendment will remain in effect until the amparo proceeding from which the suspension incident derives is resolved. It should be noted that the suspension of Article 57 of the Hydrocarbons Law took effect from the moment the Second District Judge in Administrative Matters issued the precautionary measure. Finally, we remind you that the last day to file an amparo proceeding against the amended articles of the Hydrocarbons Law is next June 16, 2021, so our firm is at your service to analyze your current situation, as well as to prepare and file the corresponding amparo, in order to protect the rights of permit holders. For additional information about our firm and our team, click here. Likewise, you may contact our experts: Alberto Córdoba, Partner: +52 (55) 5258-1016 | acordoba@vwys.com.mx Luis Burgueño, Partner: +52 (55) 5258-1003 | lburgueno@vwys.com.mx Edmond Grieger, Partner: +52 (55) 5258-1048 | egrieger@vwys.com.mx Adrián Magallanes, Partner: +52 (55) 5258-1077 | amagallanes@vwys.com.mx
