The Action: Mexico's Ministry of Environment and Natural Resources has published administrative Provisions relative to pipelines transporting petroleum, petroleum products, and petrochemicals.
The Result: The Provisions cover nearly every activity relating to the planning and operation of hydrocarbon pipelines.
Looking Ahead: Published in the Official Gazette of the Federation, the Provisions entered into force on April 1, 2017. Parties currently executing construction projects and operating pipelines have 180 calendar days to comply.
On March 31, 2017, the Ministry of Environment and Natural Resources published general administrative provisions in the Official Gazette of the Federation. These administrative provisions establish the guidelines for industrial and operational safety and environmental protection for inland transportation through petroleum, petroleum products, and petrochemical pipelines ("Provisions"). This includes specifications, characteristics, and requirements for the design, construction, pre-start, operation, maintenance, closure, dismantling, and abandonment of land transportation systems by means of pipes of petroleum, petroleum products, and petrochemicals ("OPP") in order to prevent damages to the population and environmental impacts ("Decree").
The Provisions are applicable to: (i) inland transportation systems though OPP pipes linked to natural gas processing plants; (ii) segments of pipelines of the transportation systems that are located between pumping stations; (iii) OPP transportation pipelines and associated facilities; (iv) instrumentation pipelines and other facilities connected to the pipelines; and (v) modifications and/or changes in technology, trajectory changes, repairs, as well as typical operational modifications in the system.
The Provisions outline design specifications for the development of transportation systems. Along with other design considerations, these specifications apply to the structural design, material selection, temperature, fluid, and operating pressure of the system.
As for the construction of the transportation system, the Provisions establish the obligations of: (i) obtaining a federal environmental impact and risk authorization prior to the initiation of construction activities; (ii) having elements of structural and personnel safety throughout the entire construction works process; (iii) following the procedures related to the installation of valves,...