The ADMINISTRATIVE PROVISIONS THAT SET FORTH THE GUIDELINES FOR COMPREHENSIVE MANAGEMENT OF WASTE REQUIRING SPECIAL MANAGEMENT IN THE HYDROCARBONS SECTOR (the “Guidelines”) were published in Mexico’s Federal Official Gazette on May 2, 2018 and became effective the following day. The purpose of these provisions is to establish the guidelines that Regulated Entities1 and Service Providers must comply with in the comprehensive management of Waste Requiring Special Management in the Hydrocarbons Sector.2

The Guidelines apply to: (i) the Regulated Entities that perform Hydrocarbon Sector activities in accordance with Article 3, paragraph XI of the Law of the National Agency for Industrial Safety and Environmental Protection of the Hydrocarbons Sector (“ASEA”)3; and (ii) Service Providers that directly engage in its comprehensive management.

Regulated Entities that intend to develop a project in the Hydrocarbons Sector that generate Waste Requiring Special Management must be recorded as generator of that kind of waste by ASEA 45 working days prior the development of the activities.

Regulated Entities that generate 10 tons or more of Waste Requiring Special Management must record a Management Plan before ASEA.

Generators that intend to carry out recycling or treatment activities with respect to Waste Requiring Special Management that they generate do not require authorization from ASEA unless those activities release pollutants in the environment, creating a health risk.

Regulated Entities that intend to manage Waste Requiring Special Management not generated within their facilities, as well as individuals or legal entities that intend to be Service Providers of the Hydrocarbons Sector for the comprehensive management of that waste, having a contractual relationship with the Regulated Entity, require prior authorization from ASEA.

Areas for the storage of Waste Requiring Special Management must comply with the conditions indicated in the Guidelines.

Regulated Entities and Service Providers must submit before ASEA an annual report in April or May on generation, management and transportation of Waste Requiring Special Management carried out in the previous year.