Social Impact Assessment In Mexico's Energy Sector

06/06/2018

On June 1, 2018 the Ministry of Energy published in the Federal Official Gazette the ADMINISTRATIVE PROVISIONS ON THE SOCIAL IMPACT ASSESSMENT IN THE ENERGY SECTOR (the “Provisions”), which became effective on June 2, 2018.

The purpose of these Provisions is to establish: (i) the requirements for the preparation and presentation of the Social Impact Assessment (analysis of socio-economic impacts on communities in the area of the project); and, (ii) the proceeding to be followed before the Ministry of Energy (“SENER”) to obtain the corresponding approval and recommendations, if any. These Provisions include the methodology to define the area of influence and to identify and evaluate the social impact of energy projects.

The project sponsor or developer may use a third party to perform the Social Impact Assessment, who in turn must comply with these Provisions. The following activities require a Social Impact Assessment:

I. Hydrocarbons Sector

  • Seismic exploration offshore 
  • Seismic exploration onshore
  • Exploration and extraction of hydrocarbons in contractual or assignment areas
  • Treatment and refining of oil
  • Transportation of hydrocarbons, oil products and petrochemicals
  • Storage of hydrocarbons, oil products and petrochemicals
  • Distribution of natural gas and oil products
  • Compression, liquefaction, decompression and regasification of natural gas
  • Sale to the public of natural gas and oil products

II. Electricity Sector

  • Generation of electric power  
  • Transmission and distribution of electric power as a public service

The following activities do not require a Social Impact Assessment:

  • Commercialization of hydrocarbons, oil products and petrochemicals, as well as the import and export of hydrocarbons and oil products
  • Activities within the E&P block on which the Social Impact Assessment has been presented
  • Modifications to permits and authorizations with respect to activities not included in Articles 4 and 5 of the Regulations of the Activities referred to in the Third Title of the Hydrocarbons Law
  • Power generation plants that do not require permit in accordance with Article 17 of the Electric Power Industry Law

These Provisions include four formats, depending on the activities to be performed. 

If you have any questions about this topic, please contact the following lawyer:

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