In brief
On 27 October 2026, the National Energy Commission (CNE) published in the Federal Official Gazette (Diario Oficial de la Federación (DOF)) the Accord initiating administrative permit expiration proceedings against the holders of 132 permits for the commercialization of hydrocarbons, petroleum products, and petrochemicals, on the grounds that they are allegedly subject to expire, as set forth in Article 88, Section I, subsection b, of the Hydrocarbons Sector Law (“Accord”).
The CNE identified indications that various permit holders failed to exercise the rights granted under their respective permits during a consecutive period of 365 calendar days, from 1 September 2025, through 31 August 2026.
The Accord does not declare the expiration of the permits. Rather, it initiates the corresponding proceedings, in which permit holders may submit statements, evidence, and arguments to demonstrate that they exercised the rights granted under their permits before the corresponding resolution is issued.
Recommended measures
Companies holding permits for the commercialization of hydrocarbons, petroleum products, or petrochemicals should, as a matter of priority, consider the following actions:
- Verify whether any of their commercialization permits is among the 132 permits identified in the Accord published by the CNE.
- Review internally whether they have documentation demonstrating the exercise of the rights granted under their permits during the period from 1 September 2025, through 31 August 2026, such as records of transactions involving hydrocarbons, petroleum products, or petrochemicals; information reports filed with the authority; volumetric controls; and any other records evidencing the conduct of commercial activities covered by the permit.
- Prepare and submit to the CNE the corresponding statements and evidence within the 15 business day period following the publication of the Accord in the DOF and notification of the initiation of the proceeding, as well as submit arguments within the additional five business day period thereafter.
- Take into consideration that failure to respond within the time periods established in the Accord will result in the loss of the right to present a defense, in which case the CNE will issue its determination based on the information contained in the administrative file, which could result in a declaration that the corresponding permit has expired.
- Assess that a declaration of permit expiration does not release the permit holder from any responsibilities or obligations incurred during the term of the permit; that inactivity may give rise not only to permit expiration, but also to additional regulatory non-compliance; and that continuing to conduct commercialization activities without a valid permit could create additional regulatory exposure, including sanction proceedings.
More details
- What did the CNE publish? The CNE published the Accord initiating administrative permit expiration proceedings with respect to 132 permits for the commercialization of natural gas, liquefied petroleum gas, petroleum products other than liquefied petroleum gas, and petrochemicals. The authority stated that, following a review of permit files on 1 September 2026, it identified that the rights granted under such permits had not exercised during a consecutive period of 365 calendar days, from 1 September 2025, through 31 August 2026.
- What is the ground for permit expiration invoked by the CNE? The Hydrocarbons Sector Law provides that a permit expires when its holder fails to exercise the rights granted thereunder during the period referred to above. According to the Accord, permit expiration constitutes a mechanism of control and reallocation that is not intended to deter or punish conduct, but rather operates as a consequence of inactivity, omission, or lack of interest in exercising the rights granted under the permit.
- Does the publication of the Accord mean that the permits have already been declared expired? No. The Accord itself provides that inactivity must be analyzed and assessed within each administrative proceeding, while respecting the permit holders’ right to be heard. Accordingly, the Accord merely marks the commencement of the corresponding administrative proceedings and does not constitute a final determination as to whether the grounds for permit expiration have been met.
- What options will permit holders have? The holders of the affected permits will have a period of 15 business days, counted from the publication of the Accord in the DOF and the notification by the CNE of the initiation of the proceeding, to submit to the CNE the statements and evidence demonstrating that they exercised the rights granted under their permits. In addition, they will have a period of five business days (counted from the day following the end of the fifteen business day period) to submit arguments before the authority issues the corresponding resolution. The Accord took effect on 27 October 2026, the date of its publication in the DOF, and the foregoing periods are counted from the business day following such publication and the corresponding notification.
- What happens if a permit holder does not appear within the time periods established in the Accord? If a permit holder fails to respond within the applicable time periods, its right to submit statements in its defense will be deemed forfeited. In such case, the CNE will issue its determination based on the information contained in the corresponding administrative file, which could result in a declaration that the relevant permit has expired.
Call to action
The publication of the Accord highlights the importance for companies holding permits for the commercialization of hydrocarbons, petroleum products, and petrochemicals to timely review compliance with their regulatory obligations and verify that they have sufficient documentation to demonstrate the exercise of the rights granted under their permits, particularly in light of the deadlines and consequences set forth in the Accord.
In this regard, it is important for permit holders to ensure the continuous exercise of the rights granted under their permits, maintain records, notices, and other documentation evidencing the conduct of transactions involving hydrocarbons, petroleum products, or petrochemicals, and timely comply with their information reporting obligations before the authority.
Baker & McKenzie can assist with reviewing the regulatory status of permits, assessing risks associated with potential inactivity scenarios, and developing strategies to respond to requests or proceedings initiated by the authority.
Sofía Franco, Law Clerk, has contributed to this legal update.