On May 21, 2020, a new policy on the closing, dismantling and abandonment ("CDA") of facilities in the hydrocarbons sector enacted by the National Agency for Industrial Safety and Environmental Protection of the Hydrocarbons Sector ("ASEA") was published in the Federal Official Gazette (Diario Oficial de la Federación) (the "CDA Guidelines")1.
The new CDA Guidelines became effective on May 22, 2020 and are applicable to all the participants of the hydrocarbons industry, which qualify as a "Regulated Entity" and are supervised by ASEA. Regulated Entities are those companies or individuals participating in the hydrocarbons sector including upstream, midstream and downstream activities. The CDA Guidelines will not be applicable to entities operating oil and petrochemical pipelines, LNG facilities, or non-conventional oil fields.
However, the new regulation includes obligations for some participants of the oil industry who as of May 22, 2020 fall into any of the categories described below:
- Regulated Entities with facilities currently in a definitive suspension stage (except for oil wells) shall file a new CDA program including the new requirements provided by the CDA Guidelines by May 2021;
- Regulated Entities currently performing termination operations shall file the new information required by the CDA Guidelines (Exhibit I Section A) by November 2020;
- Regulated Entities currently performing dismantling and abandonment activities shall file a report on the activities performed and a new CDA Program based on the new CDA Guidelines (Exhibit I Section A) by November 2020; and
- Regulated Entities with a closing and dismantling program or who had filed the corresponding notice, shall file an update for the next phase of their program in compliance with the CDA Guidelines by November 2020.
The CDA Guidelines are at the link below in Spanish.
https://www.dof.gob.mx/nota_detalle.php?codigo=5593629&fecha=21/05/2020
Footnote
1 "Guidelines on Industrial and Operational Safety and Environmental Protection for the Closing, Dismantling and Abandonment of Facilities in the Hydrocarbons Sector " (Lineamientos en materia de Seguridad Industrial, Seguridad Operativa y protección al medio ambiente para las etapas de Cierre, Desmantelamiento y/o Abandono de Instalaciones del Sector Hidrocarburos.
Originally published June 3, 2020.
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