Legal Update: Agreement by which various reporting, supervision and surveillance agreements of various NOMs for hydrocarbon sector activities are repealed

printable version | February 2022

On February 8, 2022, the Ministry of Environment and Natural Resources (“SEMARNAT”) published in the Official Gazette of the Federation (“DOF”) the “Agreement repealing the Procedure for the supervision and surveillance of the Mexican Official Standards (“NOMs”) regarding Petroleum Products, Liquefied Petroleum Gas, and Natural Gas, subject to compliance by the regulated holders of transportation permits by means other than pipelines for Liquefied Petroleum Gas, as well as for the Distribution and Sale to the Public of Petroleum Products, Liquefied Petroleum Gas, and Natural Gas” (the “Agreement”).

The Agreement repeals the following agreements:

1. “Procedure for the supervision and surveillance of NOMs regarding Petroleum Products, Liquefied Petroleum Gas and Natural Gas, subject to compliance by the regulated holders of transportation permits by means other than Liquefied Petroleum Gas pipelines, as well as Distribution and Sale to the Public of Petroleum Products, Liquefied Petroleum Gas and Natural Gas”, published in the DOF on April 3, 2018.
2. Agreement announcing the single format of Technical Report Type C (Installation) - Distribution of liquefied petroleum gas through a distribution plant, applicable to the procedure for the supervision and surveillance of the NOMs regarding petroleum products, liquefied petroleum gas and natural gas, subject to compliance by the regulated holders of transportation permits by means other than liquefied petroleum gas pipelines, as well as distribution and sale to the public of petroleum products, liquefied petroleum gas and natural gas”, published in the DOF on November 29, 2018.
3. "Agreement announcing the single format of Technical Report Type D Sale to the public of liquefied petroleum gas, through a service station with a specific purpose, applicable to the Procedure for the supervision and surveillance of the NOMs regarding petroleum products, liquefied petroleum gas and natural gas, subject to observance by the regulated holders of transportation permits by means other than liquefied petroleum gas pipelines, as well as distribution and sale to the public of petroleum products, liquefied petroleum gas and natural gas", published in the DOF on November 29, 2018.

The Quality Infrastructure Law (“LIC”) establishes that the NOMs must be reviewed by the Standardizing Authority^[1] corresponding at least every five years after its publication in the DOF or its last modification, through a systematic review process in terms of the LIC Regulations. In this sense, a NOM must establish the infrastructure for the Conformity Assessment^[2] applicable to it, which is of utmost importance since this is the determination of the degree of compliance with the NOMs. In relation to the Conformity Assessment, there are Conformity Assessment Bodies^[3], who are responsible for carrying out the evaluation of the NOM in question.

It is important to mention that the Agreement does not exempt regulated subjects.^[4] to comply with the obligations contained in the various NOMs and administrative provisions that regulate said activities in the hydrocarbon sector.

The Agreement entered into force the day after its publication in the DOF.

^[1] LIC Article 4, VI.- Standardizing Authority: the competent departments or entities of the Federal Public Administration that have express powers or faculties to carry out normalization and standardization activities.

^[2] LIC Article 4, XI.- Quality Assessment: the technical process that allows demonstrating compliance with the Mexican Official Standards, Standards, International Standards referred to therein or other legal provisions. It includes, among others, sampling, testing, inspection, evaluation and certification procedures.

^[3] LIC Article 4, XVII.- Conformity Assessment Bodies: the person accredited by an Accreditation Entity or, where appropriate, by the Standardizing Authority and, when it comes to Mexican Official Standards, Standards, International Standards referred to therein or other legal provisions; in the event that the accreditation is carried out by an Accreditation Entity, the Body must be approved by the competent Standardizing Authority to carry out the Conformity Assessment.

^[4] Holders of permits for transportation by means other than pipelines of Liquefied Petroleum Gas, as well as for Distribution and Sale to the Public of Petroleum Products, Liquefied Petroleum Gas and Natural Gas.

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