Oro Negro: Mexico Passes Secondary Legislation Making Energy Reform a Reality
|
|
- Joseph Leonard
- 7 years ago
- Views:
Transcription
1 Oro Negro: Mexico Passes Secondary Legislation Making Energy Reform a Reality Prepared by Luis Fernando Gomar OVERVIEW On August 6, 2014, both houses of the Mexican Congress passed the secondary laws needed to make the long-awaited energy reform in Mexico a reality. The bills have been sent to President Peña Nieto for execution, who has indicated he expects the same to be published in the Official Gazette next week, making the laws effective. As a result, private participants, both foreign (through wholly-owned Mexican subsidiaries) and domestic, will soon (most likely by mid-2015) be able to participate in upstream, midstream and downstream activities in Mexico. As discussed in a prior Energy, Oil & Gas Newsletter (Mexican Congress Opens the Door for Private Investment in Energy Industry), in December 2013 both houses of the Mexican Congress passed reforms to Articles 25, 27 and 28 of the Mexican Constitution (the 2013 Amendments ) ending a 70-plus year PEMEX monopoly over all hydrocarbon activities in Mexico and beginning this historic and market-changing process. The 2013 Amendments required the passage of secondary laws dealing with the energy sector as well as amendments to many other existing laws necessary for implementing the new energy regime. A summary of the amendments and new laws we believe most relevant to the oil and gas industry follows. Although not addressed here, Mexico s electric power generation laws have also undergone historic changes. Participants in the private sector will now be allowed to generate and sell electricity directly to very large consumers or to the Mexican government-owned utility, Comisión Federal de Electricidad. We plan to address those changes in one or more subsequent publications. THE SECONDARY LAWS The 2013 Amendments called for the implementation of new laws such as the Hydrocarbons Law (Ley de Hidrocarburos) and the Law Relating to Income From Hydrocarbons (Ley de Ingresos Sobre Hidrocarburos) ( Hydrocarbons Income Law ) and amendments to various other existing laws, such as the Foreign Investment Law (Ley de Inversión Extranjera), the Law Regarding Public Private
2 Partnerships (Ley de Asociaciones Publico Privadas) and the Mining Law (Ley Minera) and the Law Regulation PEMEX (Ley de Petróleos Mexicanos), among others. The new regime separates upstream activities from the midstream and downstream sectors. The new Hydrocarbons Law authorizes the Ministry of Energy (Secretaria de Energía) ( SENER ) to regulate all hydrocarbon activities in Mexico, either by itself (for permits dealing with the refining of hydrocarbons or the processing of natural gas as well as export and import of hydrocarbons) or through the National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos ) ( CNH ) for upstream activities or the Energy Regulatory Commission (Comisión Reguladora de Energia) ( CRE ) for midstream and downstream activities (other than refining and processing undertakings). UPSTREAM ACTIVITIES Under the new regime, the CNH may grant Asignaturas (designations of specific blocks of production) to State Productive Enterprises (Empresas Productivas del Estado), including PEMEX, or enter into contractual arrangements with private parties that allocate the right to carry out specified exploration and/or production activities in a stated territory. Unlike Asignaturas to State Productive Enterprises, contractual arrangements with private parties will be awarded through a public bid process to be overseen by the CNH. Designations to State Productive Enterprises (Including PEMEX) As for Asignaturas, the secondary laws have now clarified certain questions left unanswered when the 2013Amendments were initially passed. For example, the Hydrocarbons Law makes it clear that State Productive Enterprises (namely PEMEX) cannot transfer an Asignatura granted to it to a third party absent the approval of the SENER and the recommendation of the CNH. Furthermore, State Productive Enterprises can only enter into service agreements in relation to an Asignatura if such agreements would be expected to result in proven higher production and higher profits. Service providers must be paid a specified amount set forth in the service agreement, in cash, and may not receive in-kind payments such as a portion of hydrocarbons produced. The Hydrocarbons Law also clarifies that if a State Productive Enterprise elects to transfer an Asignatura, the SENER must undertake a bidding process with respect to such Asignatura. State Productive Enterprises may lose an Asignatura if they fail to meet criteria set forth in the Hydrocarbons Law, including following the applicable plan of operations provided to the SENER upon the Asignatura being granted. Contracts with Private Parties The CNH is also tasked with bidding out, entering into and regulating contracts with private sector parties for exploration and production activities. The nature of the blocks to be auctioned and which of the contracts created under the new regime will be entered into for such blocks will be determined by the SENER in consultation with the CNH. Similarly, the economic terms of such contracts will be determined by the Taxing Authorities (Secretaria de Hacienda y Crédito Publico) after consulting with the CNH. Once these terms have been determined, the CNH will set the parameters of the bid, select the winner, enter into a contract with the winner and regulate the resulting contracts. The Hydrocarbons Law provides limited guidance regarding the public bidding processes, establishes certain circumstances under which contracts may be rescinded and explains procedures for appealing any such rescission. The Bidding Process The Hydrocarbons Law provides little guidance as to how any bidding process will be carried out. The law gives ample authority to the CNH to conduct public bids in connection with the upstream activities. The CNH is required to publish all public bids in the Official Gazette. Parties must pre-qualify to bid. Prequalification will depend on each potential contracting party meeting certain criteria, including that the bidding party is a Mexican entity (whether wholly-owned by foreigners or not), meets certain financial thresholds (to be established at the time the public bid is made public) and other requirements. All parties wishing to bid will have at least 90 days from the date that the bid is published to respond to the CNH. The Hydrocarbons Law makes clear that the CNH is required to carry out bids in the most
3 transparent way possible but the process by which the bidding will be conducted is at the discretion of the CNH. The Contracts There are four main types of contracts that will allow private sector parties to engage in exploration and production activities relating to hydrocarbons: license agreements, profit sharing agreements, production sharing agreements and services agreements. The following summarizes each: License Agreements. License agreements will grant the licensee the right to freely carry out exploration and production activities in the area contracted for, including the operation and commercialization of hydrocarbons extracted in the contracted area. Under license agreements, Mexico retains all mineral rights and title to the hydrocarbons produced by the licensee will pass to the licensee at the wellhead. However, licensees may book the value of their economic rights under the agreements and the potential reserves, as long as their financial statements make clear that the minerals are owned by Mexico. Production Sharing Agreements. Production sharing agreements would be entered into between a contractor and the Mexican government, through the CNH. The parties will divide the oil and gas produced within the area contracted for at the wellhead according to percentages specified in the agreement. As with license agreements, Mexico owns the minerals, and ownership of the produced hydrocarbons passes at the wellhead, but unlike license agreements, only for that percentage of the hydrocarbons agreed to in the contract. The rest of the oil and gas production remains the property of Mexico and will be transferred to the Mexican Petroleum Fund (Fondo Mexicano del Petróleo) or its designee. Profit-sharing Agreements. Profit-sharing agreements will likely be based on the premise that a portion of the profits the contractor makes upon the sale of the hydrocarbons is payable to the government, based upon a contracted division of profits. Under profit sharing agreements, once the hydrocarbon is produced, it is delivered to an authorized broker for sale. Once sold, the proceeds are delivered to the Mexican Petroleum Fund, which in turn will pay the contractor its portion of the proceeds. Services Agreements. Service agreements will resemble the current services agreements that exist with PEMEX (known as Multiple Service Contracts ). Service providers will be paid an agreed fixed price for their services in cash. Economic Terms Under License, Production and Profit Sharing Arrangements: Economically, each of the license, production and profit sharing agreements summarized above is similar, with a few notable exceptions. The following summarizes the economic structure set forth in the Hydrocarbons Income Law for each such contractual arrangement. First Payment (For License Agreements Only) - Upon execution of the applicable agreement, an execution fee would be payable, with the fee to be established by the Taxing Authorities after consultation with the CNH, for each such agreement. Second Payment - During the exploration phase, the contractor would be required to pay a deferral fee as follows: I. During the first 60 months of the contract, the payment will be 1,150 Mexican pesos per square kilometer. II. As of month 61 of the contract the payment will be 2,750 Mexican pesos per square kilometer until production starts.
4 Third Payment - A royalty based on the following parameters: I. For oil produced, a rate equal to: a. If oil is below USD$48 per barrel, 7.5% per barrel; and b. If oil is at or higher than USD $48 per barrel: percentage rate = [(0.125 x Price of Contract Value) 1.5] For example, if crude is at USD$75 per barrel, then the royalty payment would be [(0.125 x USD$75) 1.5] or 7.875%. II. For natural gas produced, the following rates will apply: a. For associated natural gas (dissolved in oil deposits): Rate = Price of the Natural Gas 100 For example if natural gas is at USD$4 per MCF, then the rate payable would be 4 cents per MCF. b. For non-associated natural gas (natural gas found in deposits without oil): i. When the contract price of the natural gas is equal or lower to USD$5.00 per million BTUs, 0%; ii. When the contract price of the natural gas is higher than USD$5.00 per million BTUs but lower than USD$5.50, a rate equal to: Rate = [(Contract Price of Natural Gas 5) x 60.5] % Contract Price of Natural Gas iii. When the contract price of natural gas is equal to or higher than USD$5.50 per million BTUs, a rate equal to: Rate = Contract Price of Natural Gas 100 III. The following rate shall apply to the Contract Value of Condensed Gas: a. When the contract price is below USD$60 per barrel, 5%; and b. When the contract price is equal to or higher than USD$60 per barrel: Rate = [(0.125 x Contract Price) 2.5] % Fourth Payment - An additional payment equal to a percentage of gross income set forth in each applicable agreement will be due. This additional payment may be paid in kind with a portion of actual production going to the Mexican Petroleum Fund (or its designee) or as a portion of profits. The determination of profits will be limited by allowed deductions defined in the Hydrocarbons Income Law and the specific agreements. For instance, expenses such as consulting and legal fees, financing costs, real estate and right of way costs, donations, penalties and risk management costs, some training costs, some research and development costs, some reserve funds, broker fees, royalties and other government fees incurred during exploration and other contractual exclusions cannot be deducted. Additionally, all profits, regardless of the type of agreement, will be subject to applicable Mexican taxes such as income taxes (Impuesto Sobre la Renta).
5 Contractual Arrangement Generally Although the above structure sets forth relatively clear guidelines as is always the case, the proof of the pudding will be in the eating most specifically the negotiation of the fourth payment due to government. Private parties must determine whether the total monies payable to the Mexican government under an agreement will be within the range of international standards for the specific contracted activity. Another important component to consider is that all upstream activities will require the use of 35% national content (except in deep water). The SENER, in consultation with the CNH and the Ministry of Economy (Secretaria de Economía), will determine whether the requirement is met. Criteria for that decision will include: goods and services contracted (taking into account their origin), labor (skilled and unskilled), training of local labor, investment in local and regional infrastructure, and technology transfer, among others. The foregoing merely summarizes certain of the main concepts of the available contractual options. Exceptional situations exist. For instance, companies with current mining permits may engage in production of natural gas without bidding for and entering into an agreement with the CNH as long as (with certain exceptions) the production is related to mining of carbon. Midstream and Downstream activities The CRE will regulate and award permits for engaging in midstream activities. Parties who transport oil and gas products, including through pipeline, will apply to receive permits to be issued at the discretion of the CRE. Furthermore, the CRE is required to create a national integrated system for the transportation of natural gas. The system will be run independently and include pipelines, storage facilities, and all equipment and installations involved in the transportation and storage of natural gas. The CRE may also designate other private integrated systems that may or may not be connected to the national system. The national system, along with independent private systems, will be required without exception to allow public access to their systems to those who prove ownership or rights to the natural gas being transported or stored. In the case of pipeline activities, parties granted permits will be responsible for the infrastructure cost in connection with building a pipeline network and may charge market prices for the use of such pipelines. Although there are certain exceptions, pipeline permittees generally may not use their pipelines to transport oil and gas products produced by them. As previously mentioned, the SENER will be the body that grants permits for the refining of crude oil or the processing of natural gas, as well as permits to export or import the refined products. Property Rights and Use of Surface Estates In an attempt to make the process as straightforward as possible, the Mexican Congress included provisions in the secondary laws making clear that any and all activities in connection with the energy sector are of public interest and therefore take priority over any other use, whether commercial or otherwise, of surface estates. Thus, lawmakers established a procedure by which private landowners MUST enter into agreements with contractors or permittees, as applicable, to rent, obtain a right of way, or acquire the properties in question, for all oil and gas activities. If, however, the parties cannot reach an agreement within 90 days from the date that the contractor or permittee, as applicable, provides a written proposal to the landowner, the contractor or permittee may seek a legal servitude for use of the land for hydrocarbon-related activities be established by a district court (or, if the land is subject to the Agrarian Law, with the applicable Agrarian Tribunal). Interestingly, contracts for land use in connection with hydrocarbon activities may not contain confidentiality provisions and must provide for payments as result of any damage from hydrocarbon activities. Additionally, all contracts in connection with the exploration and production of oil and gas in marketable quantities must contain a royalty payment provision (in addition to royalties paid to the Mexican government as set forth above). Royalties payable to land owners may vary in terms of percentages paid but may not be less than 0.5% of gross income or more than 2.0% of gross income in the
6 case of oil, or 3.0% of gross income in the case of natural gas. All determinations of gross income for purposes of these royalty payments are made after all payments have been made to the Mexican government. Payments made in connection with use of the land may be made in cash or other arrangements such as the hiring of labor, acquiring goods or services from the land owners, commitments to invest in local or community projects or developments or a combination thereof. FINAL THOUGHTS The steps taken by both houses of Mexican Congress to pass the secondary legislation opening the energy sector to the private sector are without precedent. Based on how quickly the laws passed, the fact that the laws were passed without major debate by the PRI and PAN parties, and that the provisions of the laws establish relatively clear guidelines, the Mexican government appears to have a great deal of interest in attracting foreign investment in the energy sector. As with any new laws, however, the devil will be in the details. Questions regarding exactly how private parties will be able to take advantage of the opportunities, including the specifics of the public bidding process, will follow and the economics of the contracts will remain unknown until the first public bids are published. Specifically, although the components on deferral fees and royalties are clear, the fourth payment component creates uncertainty as to the economics of the agreements. Further, in the case of license agreements, parties should be ready to make an unknown execution fee payment upon entering into the license agreement with the CNH. This overhaul will be for naught if, taking into account all monies payable to all parties including the government and landowners, exploration and production activities are not economically competitive. Mexico has taken a great step towards creating a new industry, and U.S. and other foreign companies should consider whether it makes sense to be at the forefront of this great opportunity. However, we will not know until the actual bid packages are released whether the new legislation will actually be the expected transformational change. For more information on the changes to Mexico s energy laws, please contact: Mexico City: Luis F. Gomar, Partner-in-Charge, , luis.gomar@strasburger.com Dallas: Jules Brenner, Partner , jules.brenner@strasburger.com Houston: Garney Griggs, Partner, , garney.griggs@strasburger.com New York City: Mary Rose Brusewitz, Partner, , maryrose.brusewitz@strasburger.com San Antonio: Gilbert F. Vazquez, Partner, , gilbert.vazquez@strasburger.com About Strasburger & Price, LLP One of the fastest growing law firms in Texas, Strasburger & Price, LLP stands ready to fill the full range of legal needs for Texasbased, middle-market companies, while also performing run the company work for national and international clients. The firm, which celebrates its 75th anniversary this year, has consistently been recognized as a premier Texas law firm, in both the courtroom and the boardroom. With experience in more than 30 practice areas, Strasburger attorneys provide legal advice to a variety of businesses from start-ups to Fortune 500 companies, both publicly and privately held as well as individuals and governmental entities. Strasburger has Texas offices in Austin, Collin County, Dallas, Houston, and San Antonio, as well as offices in New York City, Washington, D.C. and, as Strasburger & Price, S.C., in Mexico City. For more information about Strasburger, please visit DISCLAIMER: Articles contained within this media release provide information on general legal issues and are not intended to provide advice on any specific legal matter or factual situation. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional counsel. ADVERTISEMENT NOTICE: This may constitute a commercial electronic mail message subject to the CAN- SPAM Act of If you do not wish to receive further commercial electronic mail messages from the sender, please send an to Strasburger@Strasburger.com and request that your address be removed from future mailings.
Mexico is living in very interesting times. With a new reform
Mexico s ongoing energy reform and infrastructure trends: new investment opportunities Julián J Garza C and Héctor Arangua L of Nader Hayaux & Goebel in Mexico City look at the possibilities opening up
More informationThe Oil & Gas Fiscal Regime in Mexico. Energy and Natural Resources Group Tax and Legal
The Oil & Gas Fiscal Regime in Mexico Energy and Natural Resources Group Tax and Legal The Oil & Gas Fiscal Regime in Mexico Following the constitutional amendments of December 2013 and the so-called secondary
More informationMEXICAN ENERGY REFORMS
MEXICAN ENERGY REFORMS JOHNS HOPKINS UNIVERSITY School of Advanced International Studies Dr. Francisco Barnés de Castro Comisión Reguladora de Energía Abril 29, 2014 1. Brief history of the energy industry
More informationTestimony for Texas Senate Committee on Natural Resources Subcommittee Studying Impacts of Mexico s Energy Reforms on Texas
Testimony for Texas Senate Committee on Natural Resources Subcommittee Studying Impacts of Mexico s Energy Reforms on Texas September 19, 2014 ALFREDO RAMOS Houston and Mexico City Offices 713.276.5298
More informationMexican Oil & Gas industry Investment opportunities post reform
Mexican Oil & Gas industry Investment opportunities post reform Eagle Ford Consortium Meeting January 29th 2014 Texas A&M International University Student Center Ballroom Laredo, Texas Antonio Juárez January
More informationGlobal Energy Industry review
Winter 2014 Global Energy Industry review 1 Analysis of Mexico s New Hydrocarbons Legal Regime 12 Analysis of Mexico s New Electric Industry Law 17 Romania Energy Investment Opportunities 21 Power Sector
More informationMexico s Energy Reform. 2 LATAM Oil & Gas Summit
Mexico s Energy Reform 2 LATAM Oil & Gas Summit September 10th, 2014 Dirección Jurídica Why was the Energy Reform necessary? Because PEMEX had to be strengthened and it had to diversify its risks The inertial
More informationChoice of Business Entity: Do Self- Employment Taxes Disfavor Limited Liability Companies? (An Update)
Choice of Business Entity: Do Self- Employment Taxes Disfavor Limited Liability Companies? (An Update) Prepared by Jim Browne In a previous newsletter i, I argued that a properly structured limited liability
More informationInvestment in Mexico Arising from the Energy Reform. Beatriz Camarena Maney
Investment in Mexico Arising from the Energy Reform Beatriz Camarena Maney Overview National Infrastructure Program & Key Factors of The Energy Reform for the Midstream Sector! Currently, Mexico does not
More informationENERGY REFORM. Strengthen the stewardship of the State as the owner of the oil and gas, and as regulator of the oil industry.
I. The Objectives of the Reform. The bill being submitted by the Federal Executive for the consideration of the Congress of the Union, proposes that Constitutional Article 27 return to state what President
More informationMEXICO TAXATION GUIDE
THE FLORES LAW FIRM Attorney and Counselor at Law 9901 IH-10 West, Suite 800 San Antonio, TX 78230 TEL. (210) 340-3800 FAX (210) 340-5200 MEXICO TAXATION GUIDE I. RECOGNIZED MEXICAN BUSINESS ENTITIES A.
More informationOnly in case of serious legal break
MEXICO Electricity and Hydrocarbons Regulator NAME WEBSITE LATEST ANNUAL REPORT Comisión Reguladora de Energía or Energy Regulatory Commission CRE http://www.cre.gob.mx http://www.cre.gob.mx/pagina_a.aspx?id=25
More informationMexico s Energy Reform A Game Changer in the Nation s History
December 2013 David Enríquez Senior Partner Oil & Gas Maritime Mexico s Energy Reform A Game Changer in the Nation s History I BACKGROUND AND PARLIAMENTARY WORK A 3 PROPOSALS Contract model Concession
More informationEconomic Watch. Opportunities from Mexico s Energy Reform. United States. Mexico passes major Constitutional reform
Economic Watch United States Opportunities from Mexico s Energy Reform Houston, January 22, 2014 Economic Analysis Nathaniel Karp nathaniel.karp@bbvacompass.com Mexico s energy reform will offer abundant
More informationAccounting of the reserves exploration and extraction contracts
Accounting of the reserves exploration and extraction contracts Accounting of the reserves exploration and extraction contracts In December 2013, the Mexican government amended its Constitution, effectively
More informationComparison of State Severance Taxes on Oil and Gas Utah and Selected Oil and Gas Producing States
Comparison of State Severance es on Oil and Gas Utah and Selected Oil and Gas Producing States Prepared for Utah Review Commission April 22, 2005 Draft State Oil Natural Gas Conservation Fee or Alaska
More informationPartner. International Law Journal
nicolas.borda@haynesboone.com PRACTICES: Energy, Power and Natural Resources, Oil and Gas, Corporate, Midstream, Liquefied Natural Gas (LNG), Mining and Metals, International, Mexico, Latin America and
More informationSummary of Mexico s Production-Sharing Contract Terms for Shallow Water Areas
Legal Update January 13, 2015 Summary of Mexico s Production-Sharing Contract Terms for Shallow Water Areas The Mexican National Hydrocarbons Commission (CNH) has published the model production-sharing
More informationLICENSE CONTRACT FOR THE EXTRACTION OF HYDROCARBONS (DEEP WATER) ENTERED INTO BY THE NATIONAL HYDROCARBONS COMMISSION, ABC, AND XYZ
CONSORTIUM MODEL LICENSE CONTRACT FOR THE EXTRACTION OF HYDROCARBONS (DEEP WATER) ENTERED INTO BY THE NATIONAL HYDROCARBONS COMMISSION, ABC, AND XYZ CONTENT ARTICLE 1. DEFINITIONS AND INTERPRETATION...
More informationFREQUENTLY ASKED QUESTIONS
INTEREST OWNER RELATIONS CONTACT INFORMATION 810 Houston St, Fort Worth, TX 76102 Toll Free Phone: 1-866-886-2613 Hours of Operation: 8:00am-5:00pm/Central Time FREQUENTLY ASKED QUESTIONS 1. What are the
More informationThis summary covers decrees containing secondary energy laws issued by the Federal Executive in the Official Gazette dated August 11 of this year.
* This summary covers decrees containing secondary energy laws issued by the Federal Executive in the Official Gazette dated August 11 of this year. 2 Index The Mexican Petroleum Law..5 The Federal Electricity
More informationOverview of New Mexico Taxes on Oil and Gas Production Presented to the Revenue Stabilization and Tax Policy Committee
Overview of New Mexico Taxes on Oil and Gas Production Presented to the Revenue Stabilization and Tax Policy Committee Thomas Clifford PhD, Policy and Research Director N.M. Taxation and Revenue Department
More informationMEXICO S ENERGY REFORM
MEXICO S ENERGY REFORM March 8th, 20156 Austin, Texas 1 The legislative energy reform: Articles 26, 27 and 28, and 21 transitory articles to provide framework Constitution December 2013 Key aspects: Allow
More informationFrequently Asked Questions Concerning the Public Bidding and Prevailing Wage Requirements of New Jersey Charter Schools
Frequently Asked Questions Concerning the Public Bidding and Prevailing Wage Requirements of New Jersey Charter Schools 1. Are charter schools required to comply with New Jersey public bidding requirements
More informationHYDROCARBONS LAW. Title I General Provisions
HYDROCARBONS LAW Title I General Provisions Article 1.- This law is regulatory of Articles 25, fourth paragraph; 27, seventh paragraph; and 28, fourth paragraph of the Constitution of the United Mexican
More informationMineral rights. Free entry system - first settler has preferential right to mining
Mineral rights Australia UK Miner has right to enter and explore public lands and acquire title to minerals by staking a claim (free entry system). Ownership of most minerals vested in the State General
More informationCENTURY ENERGY LTD. FORM 51-102F1 MANAGEMENT DISCUSSION AND ANALYSIS FOR THE YEAR ENDED AUGUST 31, 2014
CENTURY ENERGY LTD. FORM 51-102F1 MANAGEMENT DISCUSSION AND ANALYSIS FOR THE YEAR ENDED AUGUST 31, 2014 The following management s discussion and analysis ( MD&A ), prepared as of December 11, 2014, should
More informationINTERNATIONAL REAL ESTATE BRIEFING
September 2004 INTERNATIONAL REAL ESTATE BRIEFING CONTENTS LAND USE RIGHTS IN CHINA 1 I.1 Introduction 1 I.2 State-owned and Collectively-owned Land 2 I.3 Land Use Rights 2 a. Granted land use rights 2
More informationBlack Stone Minerals, L.P.
July 30, 2015 cc:pa:lpd:pr (reg-132634-14), Room 5203 Internal Revenue Service P.O. Box 7604 Ben Franklin Station Washington, DC 20044 Re: Taxpayer Comments on Proposed reg-132634-14 To Whom It May Concern:
More informationPurchase Price Allocations for Solar Energy Systems for Financial Reporting Purposes
Purchase Price Allocations for Solar Energy Systems for Financial Reporting Purposes July 2015 505 9th Street NW Suite 800 Washington DC 20004 202.862.0556 www.seia.org Solar Energy Industries Association
More informationPrograma Ejecutivo Internacional: Regulación de Hidrocarburos
Programa Ejecutivo Internacional: Regulación de Hidrocarburos REGULATION OF HYDROCARBONS TRAINING COURSE I. General Theme: The forces of globalization test the ability of states to manage and sustain their
More informationSupporting technology development: The role of the public sector in Mexico
Supporting technology development: The role of the public sector in Mexico Heavy Oil Working Group August 2011 Dr. Edgar Rangel Germán Commissioner 1 Outline Mexico s s energy reform and the new E&P regulatory
More informationIRS Issues Final FATCA Regulations
IRS Issues Final FATCA Regulations The United States Internal Revenue Service (IRS) has issued long-awaited final regulations (the Final Regulations) under the Foreign Account Tax Compliance Act (FATCA).
More informationChapter 200 Light Sweet Crude Oil Futures
Chapter 200 Light Sweet Crude Oil Futures 200100. SCOPE OF CHAPTER This chapter is limited in application to Light Sweet Crude Oil futures. The procedures for trading, clearing, delivery and settlement
More informationPRIVATE EQUITY INSIGHTS
In this Energy Investment Education Whitepaper, we discuss, Why It Is Financially Better To Own A Portfolio Of Producing Oil & Gas Working Interest Instead of Producing Royalty Interest. Paul Anthony Thomas
More informationMexico. Rodolfo Trampe, Jorge Díaz, José Palomar and Carlos López. Von Wobeser y Sierra, S.C.
Mexico Rodolfo Trampe, Jorge Díaz, José Palomar and Carlos López Market overview 1 What kinds of outsourcing take place in your jurisdiction? In Mexico, a subcontracting regime (understood as the regime
More informationTAX ISSUES RAISED BY LNG PROJECTS
TAX ISSUES RAISED BY LNG PROJECTS Jon Lobb Baker Botts L.L.P. ABSTRACT This paper discusses tax issues that may be encountered by a company investing in an LNG project. 1. Income Taxes A seller's income
More informationMEMORANDUM ON LIMITED LIABILITY COMPANIES IN THE UNITED STATES
MEMORANDUM ON LIMITED LIABILITY COMPANIES IN THE UNITED STATES This memorandum describes certain general characteristics of limited liability companies in the U.S. which we have found to be of interest
More informationAlfredo Ramos. Partner, Corporate
Alfredo Ramos Partner, Corporate Alfredo Ramos is an experienced energy/international project development attorney, and former in-house counsel, focused primarily on serving the energy industry and business
More informationAcisition of Real Estate by a Non-Resident
IBA REAL ESTATE COMMITTEE REAL ESTATE IN A NUTSHELL: MEXICO OWNERSHIP/RESTRICTIONS ON OWNERSHIP BY NON-RESIDENTS Name: LUIS MORENO, GERARDO CARRILLO Law Firm and City/Country: HAYNES & BOONE, S.C., MEXICO
More information586475 (Rev 03) Cash Sweep Program Disclosure Statement
586475 (Rev 03) Cash Sweep Program Disclosure Statement Cash Sweep Program Disclosure Statement Summary Please consult the full text of the disclosure statement below for further information at the pages
More information2015: Year of changes and opportuni7es in the Mexican energy sector
2015: Year of changes and opportuni7es in the Mexican energy sector Gerardo Bazán G. Enero 2015 Content 1. 2013-2014: Structural reforms 2. Energy sector development 3. New energy strategy and general
More informationLICENSE CONTRACT MODEL ROUND 1: THIRD INVITATION TO BID, ONSHORE FIELDS. Bidding Process CNH-R01-C03/2015
LICENSE CONTRACT MODEL ROUND 1: THIRD INVITATION TO BID, ONSHORE FIELDS Bidding Process CNH-R01-C03/2015 May, 2015 Round 1 FIRST APPROACH 2 Round 1 NORTH REGION FIELDS 9 Contractual areas 9 Dry gas fields
More informationCAMPAIGN FINANCE GUIDE
CAMPAIGN FINANCE GUIDE State Ballot Question Committees Office of Campaign and Political Finance Commonwealth of Massachusetts Revised 08/2016 T his guide is designed to introduce the state campaign finance
More informationREAL ESTATE TAX CERTIFICATE LIENS (House Bill 371)
REAL ESTATE TAX CERTIFICATE LIENS (House Bill 371) SUMMIT COUNTY FISCAL OFFICE BEGAN IMPLEMENTING THE NEW DELINQUENT PROPERTY TAX COLLECTION METHOD IN 1998 The information contained within will help explain
More informationPENNSYLVANIA PERSONAL INCOME TAX GUIDE TABLE OF CONTENTS
CHAPTER 23: NATURAL RESOURCES TABLE OF CONTENTS I. FEDERAL INCOME TAX TREATMENT OF DEPLETION... 3 A. Depletion Overview... 3 B. Federal Statute... 3 C. Economic Interest... 4 D. Cost Depletion... 4 E.
More informationNATIONAL HYDROCARBONS COMMISSION
NATIONAL HYDROCARBONS COMMISSION BIDDING GUIDELINES FOR THE AWARD OF PRODUCTION SHARING CONTRACTS FOR THE EXTRACTION OF HYDROCARBONS IN SHALLOW WATERS SECOND INVITATION TO BID Bidding Process CNH-R01-L02/2015
More informationMexico s Guidelines for Clean Energy Certificates Will Support Renewable Energy Development
Client Alert Latin America Energy Finance October 27, 2014 Mexico s Guidelines for Clean Energy Certificates Will Support Renewable Energy Development By Michael S. Hindus, Eric Save and John B. McNeece
More informationSAMPLE MODEL LANGUAGE FOR EDWARD JONES TRUST COMPANY FOR THE USE OF LEGAL COUNSEL ONLY
SAMPLE MODEL LANGUAGE FOR EDWARD JONES TRUST COMPANY FOR THE USE OF LEGAL COUNSEL ONLY This sample model language is provided for the reference of the drafting attorney as an educational and informational
More informationQUALIFYING FOR PUBLIC CHARITY STATUS: The Section 170(b)(1)(A)(vi) and 509(a)(1) Test and the Section 509(a)(2) Test
QUALIFYING FOR PUBLIC CHARITY STATUS: The Section 170(b)(1)(A)(vi) and 509(a)(1) Test and the Section 509(a)(2) Test Tax-exempt status under Section 501(c)(3) of the Internal Revenue Code permits a charitable
More informationInternal Revenue Service
Internal Revenue Service Number: 201323016 Release Date: 6/7/2013 Index Number: 856.00-00 -------------------------------------------------- -------------------------------------------- ----------------------------------
More informationReport on Proposed Mexico Model Contract and Bid Conditions for First Shallow Water Bid Round
Report on Proposed Mexico Model Contract and Bid Conditions for First Shallow Water Bid Round December 15, 2014 Dr. Pedro van Meurs J. Jay Park, Q.C. Report on Proposed Mexico Model Contract and Bid Conditions
More informationMineral rights ownership what is it and why is it so unique in the USA?
Mineral rights ownership what is it and why is it so unique in the USA? Introduction This document is designed to explain the concept of mineral rights ownership, and how such ownership differs between
More informationCOMMISSION Director INTRODUCTION ARKANSAS OIL AND GAS COMMISSION
COMMISSION Director ARKANSAS OIL AND GAS COMMISSION INTRODUCTION The purpose and mission of the Arkansas Oil and Gas Commission (Commission) is to serve the public, prevent waste, encourage conservation,
More informationMay 2013. Processing of restricted U.S. and Canadian Securities
May 2013 Processing of restricted U.S. and Canadian Securities Table of Contents 1. Terms 3 2. What are restricted securities? 4 2.1 U.S. market 4 2.2 Canadian market 4 3. Delivery of restricted securities
More informationANNEX 7.1 Guide to Land Acquisition and Compensation (GLAC) LAND ACQUISITION
ANNEX 7.1 Guide to Land Acquisition and Compensation (GLAC) LAND ACQUISITION Overview Expropriation is a legal way to enable the government or a public legal entity to use immovable assets owned by natural
More informationGlobal Transfer Pricing Review
GLOBAL TRANSFER PRICING SERVICES Global Transfer Pricing Review Mexico kpmg.com TAX 2 Global Transfer Pricing Review Mexico KPMG observation Mexico has been very active in transfer pricing. The tax authority
More informationWhat Every Member of the Trade Community Should Know About: Buying and Selling Commissions
What Every Member of the Trade Community Should Know About: Buying and Selling Commissions AN INFORMED COMPLIANCE PUBLICATION OCTOBER 2006 NOTICE: This publication is intended to provide guidance and information
More informationFORM 7 MONTHLY PROGRESS REPORT
FORM 7 MONTHLY PROGRESS REPORT Name of CNSX Issuer: GoviEx Uranium Inc. (the Issuer ). Trading Symbol: GXU Number of Outstanding Listed Securities: 168,151,349 Class A Common Shares Date: November 5, 2015
More informationNamibia. Koep & Partners. Introduction
Koep & Partners Introduction Key legislation and regulatory structure Once largely ignored by international oil and gas companies, has in recent times been called one of the last frontiers of oil and gas
More informationProcess safety in Shell
Process safety in Shell 1 Process safety in Shell Our assets are safe and we know it Given the nature of the risks involved, ensuring the safety and integrity of our assets is paramount to Shell. For us,
More informationSample Property Management Agreement PROPERTY MANAGEMENT AGREEMENT
Sample Property Management Agreement Property Manager s Address Tel. 321.867.5309 New Rochelle, New York XXXXX Fax (912) 867.5309 PROPERTY MANAGEMENT AGREEMENT THIS AGREEMENT made this 1st day of _November,
More information450 Lexington Ave 1350 I Street, NW Suite 3320 Suite 1100 New York, NY 10017 Washington, DC 20005
Eric van Aalst Mark Riedy Citco Corporate Services Inc. Andrews Kurth LLP 450 Lexington Ave 1350 I Street, NW Suite 3320 Suite 1100 New York, NY 10017 Washington, DC 20005 Structuring International Operations
More informationSaudi Arabian Oil Company (Saudi Aramco)
Saudi Arabian Oil Company (Saudi Aramco) Summary Plan Description Retirement Income Plan U.S. Dollar Employees January 1, 2016 Table of Contents WHO IS ELIGIBLE... 1 COST AND FUNDING... 2 VESTING... 2
More informationSale of Partnership and LLC Interests: A Walk Through Purchase and Sale Agreements
The University of Texas School of Law Presented: Partnerships, Limited Partnerships and LLCs July 19-20, 2007 Austin, TX Sale of Partnership and LLC Interests: A Walk Through Purchase and Sale Agreements
More informationOIL SALES MASTER AGREEMENT
University Oil Royalty In Kind Program OIL SALES MASTER AGREEMENT This OIL SALES MASTER AGREEMENT (this Agreement ) is made effective for all purposes as of April 1, 1998, by and between the ("Seller")
More informationTanzania. Rex Attorneys. Introduction
Rex Attorneys Introduction Key legislation and regulatory structure s upstream oil and gas sector is currently enjoying a boom experienced elsewhere in East Africa following major discoveries of natural
More informationExchange Rate Regimes in Mexico since 1954
Exchange Rate Regimes in Mexico since 1954 SEPTEMBER 2009 Disclaimer: This document is not intended to substitute its original version in Spanish for any legal purpose. It is intended solely for guidance
More informationST. LOUIS LABORERS VACATION FUND SUMMARY PLAN DESCRIPTION
ST. LOUIS LABORERS VACATION FUND SUMMARY PLAN DESCRIPTION REVISED JANUARY 2012 TABLE OF CONTENTS JOINT BOARD OF TRUSTEES... 1 1. THE NAME OF THE PLAN... 3 2. THE TYPE OF THE PLAN... 3 3. PLAN IDENTIFICATION
More informationALERT. New Proposed 752 Regulations to Alter Partnership- Level Debt Allocations. Tax March 2014
ALERT Tax March 2014 New Proposed 752 Regulations to Alter Partnership- Level Debt Allocations On January 29, 2014, the Internal Revenue Service and Treasury Department issued a notice of proposed rule-making,
More informationDIVIDEND REINVESTMENT PLAN
DIVIDEND REINVESTMENT PLAN 2000 Post Oak Boulevard, Suite 100/Houston, TX 77056-4400 www.apachecorp.com Dear Apache Stockholder: The Dividend Reinvestment Plan is open to all holders of record of Apache
More informationAbdelly & Associés. Key legislation and regulatory structure. Introduction
Abdelly & Associés Introduction s current proven reserves are approximately 838m barrels, of which 51 per cent is oil and 49 per cent is gas. Approximately two-thirds of s proven gas reserves are located
More informationPROCUREMENT GUIDE: CHP FINANCING
PROCUREMENT GUIDE: CHP FINANCING 1. Overview The decision of whether and how to finance a CHP system is a critical step in the development of a CHP project. CHP systems require an initial investment to
More informationPETRÓLEOS MEXICANOS (Exact name of registrant as specified in its charter)
20-F 1 d715090d20f.htm FORM 20-F UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for
More informationEvaluating Oil & Gas Lease Proposals
Evaluating Oil & Gas Lease Proposals Theodore A. (Ted) Feitshans Department of Agricultural & Resource Economics North Carolina State University 919-515-5195 ted_feitshans@ncsu.edu April 26, 2011 The author
More informationINVESTMENT CONSULTING SERVICES AGREEMENT
INVESTMENT CONSULTING SERVICES AGREEMENT THIS AGREEMENT is made this day of, 20 by and between I.Q. Trends Private Client Asset Management (the Advisor ), a California corporation, whose principal place
More informationInformation Regarding U.S. Federal Income Tax Calculations in connection with the Acquisition of DIRECTV by AT&T
Information Regarding U.S. Federal Income Tax Calculations in connection with the Acquisition of DIRECTV by AT&T The following information is provided to illustrate how to determine taxable gain on DIRECTV
More informationGENERAL LAWS OF MASSACHUSETTS
GENERAL LAWS OF MASSACHUSETTS PART I. ADMINISTRATION OF THE GOVERNMENT. TITLE II. EXECUTIVE AND ADMINISTRATIVE OFFICERS OF THE COMMONWEALTH. CHAPTER 21E. MASSACHUSETTS OIL AND HAZARDOUS MATERIAL RELEASE
More informationCAPITAL AREA HOUSING FINANCE CORPORATION
CAPITAL AREA HOUSING FINANCE CORPORATION APPLICATION FOR FINANCING QUALIFIED RESIDENTIAL RENTAL PROJECTS INSTRUCTIONS AND APPLICATION FORM EFFECTIVE JUNE 1, 2013 4101 Parkstone Heights Drive, Suite 280
More information44. Kazakhstan. Statutory rules
44. Kazakhstan Introduction Kazakhstan, unlike other central Asian countries and Russia, adopted a separate law concerning transfer pricing, which included the arm s-length concept and took effect from
More informationH.R. 702 A bill to adapt to changing crude oil market conditions
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE September 29, 2015 H.R. 702 A bill to adapt to changing crude oil market conditions As reported by the House Committee on Energy and Commerce on September 25,
More informationDeveloping Estonian energy policy hand in hand with EU energy packages
Developing Estonian energy policy hand in hand with EU energy packages Einari Kisel Secretary General of Energy of the Estonian Ministry of Economic Affairs and Communications 2008 will go down in history
More informationNevada enacts Commerce Tax effective July 1, 2015
from State and Local Tax Services Nevada enacts Commerce Tax effective July 1, 2015 June 10, 2015 In brief Signed on June 10, 2015, and effective July 1, 2015, S.B. 483 imposes an annual commerce tax on
More informationThe Bank of Nova Scotia Shareholder Dividend and Share Purchase Plan
The Bank of Nova Scotia Shareholder Dividend and Share Purchase Plan Offering Circular Effective November 6, 2013 The description contained in this Offering Circular of the Canadian and U.S. income tax
More informationACCOUNTING FOR LEASES AND HIRE PURCHASE CONTRACTS
Issued 07/85 Revised 06/90 New Zealand Society of Accountants STATEMENT OF STANDARD ACCOUNTING PRACTICE NO. 18 Revised 1990 ACCOUNTING FOR LEASES AND HIRE PURCHASE CONTRACTS Issued by the Council, New
More informationGas Supplies & Pricing Law
Article: 1 Definitions Gas Supplies & Pricing Law The following Terms and expressions shall have the meanings set forth below unless otherwise stated herein: - Saudi Aramco: Saudi Arabian Oil Company -
More informationOffice of Legislative Research Connecticut General Assembly OLR ACTS AFFECTING. Banking. By: Jennifer Gelb, Associate Attorney
Office of Legislative Research Connecticut General Assembly OLR ACTS AFFECTING Banking By: Jennifer Gelb, Associate Attorney 2004-R-0473 June 9, 2004 Mary M. Janicki, Director Phone (860) 240-8400 FAX
More informationSAMPLE DURABLE POWER OF ATTORNEY. John Doe
This document was prepared by: John Doe 100 Main Street Austin, Texas 80201 Return To: John Doe 555 Simple Street Austin, Texas 80201 DURABLE POWER OF ATTORNEY OF John Doe NOTICE: THE POWERS GRANTED BY
More informationClient Alert. Real Estate Activities Under the Framework of the Bank Holding Company Act: Limits and Opportunities
January 14, 2009 Client Alert Jointly Prepared by Goodwin Procter s Financial Services and RE, REITs & RE Capital Markets Groups Real Estate Activities Under the Framework of the Bank Holding Company Act:
More informationAGREEMENT made on between Berrett-Koehler Publishers, Inc. ( the Publisher ) and ( the Author ).
AGREEMENT made on between Berrett-Koehler Publishers, Inc. ( the Publisher ) and ( the Author ). The Author and Publisher agree to collaborate in the publication of a work ( the Work ) on (tentative title)
More informationFINANCIAL INSTITUTIONS REGULATORY UPDATE
OCTOBER 19, 2009 FINANCIAL INSTITUTIONS REGULATORY UPDATE The Financial Institutions Regulatory Practice Group of Sidley Austin LLP The Financial Institutions Regulatory Practice group offers counseling,
More informationChapter 200 1999 EDITION. Disadvantaged, Minority, Women and Emerging Small Business Enterprises
Chapter 200 1999 EDITION Disadvantaged, Minority, Women and Emerging Small Business Enterprises GENERAL PROVISIONS 200.005 Definitions for ORS 200.005 to 200.075 200.015 Legislative findings 200.025 Advocate
More informationBuying and Selling Oil & Gas Assets In Bankruptcy Cases. June 16, 2015
Buying and Selling Oil & Gas Assets In Bankruptcy Cases June 16, 2015 Two Main Paths for Disposition of Debtor s Assets and/or Business Through Bankruptcy o Section 363 sale advanced by motion practice
More informationBackground. When the Government Is the Landlord. 1 Norway's oil and gas reserves are all offshore.
Regional Details: Norway In this appendix, we describe the methods the government uses to obtain revenues from oil and gas production in Norway. We present quantitative estimates of revenues as well as
More informationSEC ADOPTS FINAL RULES TO THE INVESTMENT ADVISERS ACT OF 1940 IMPLEMENTING PROVISIONS OF THE DODD FRANK ACT
SEC ADOPTS FINAL RULES TO THE INVESTMENT ADVISERS ACT OF 1940 IMPLEMENTING PROVISIONS OF THE DODD FRANK ACT 1. INTRODUCTION On 22 June 2011, the Securities and Exchange Commission ("SEC") adopted final
More informationAFFORDABLE HOUSING ACTION PLAN
AFFORDABLE HOUSING ACTION PLAN ACT LAND RENT SCHEME - FREQUENTLY ASKED QUESTIONS LAND What is the ACT Land Rent Scheme? The Land Rent Scheme is an ACT Government initiative to increase access to affordable
More informationATLANTA COMMERCIAL BOARD OF REALTORS, INC. EXCLUSIVE LISTING AGREEMENT FOR SALE OF REAL PROPERTY
ATLANTA COMMERCIAL BOARD OF REALTORS, INC. EXCLUSIVE LISTING AGREEMENT FOR SALE OF REAL PROPERTY THIS EXCLUSIVE LISTING AGREEMENT (this Agreement ), dated, is made and entered into by and between as owner
More informationADMINISTRATIVE POLICY 11-01
SHARON R. BOCK Clerk & Comptroller Palm Beach County ADMINISTRATIVE POLICY 11-01 TO: EFFECTIVE DATE: SUBJECT: Our Foreclosure Sale Customers June 17, 2011 CLERK'S JUDICIAL SALES PROCEDURE (Note: this policy
More informationE-ALERT Energy and Natural Resources
E-ALERT Energy and Natural Resources October 3, 2014 UK ISSUES PROPOSED RULE TO IMPLEMENT EU EXTRACTIVE AND LOGGING INDUSTRY REPORTING REQUIREMENTS The UK Government recently announced the publication
More information