On August 4, 2026, the Decree issuing the Regulation for the Determination and Payment of the Non-Forfeiture Guarantee Fee for National Water Rights (the “Regulation”) was published in the Official Gazette of the Federation (the “OGF”). The Regulation entered into force on August 5, 2026, and repealed the previous regulation published in the OGF on May 27, 2011, subject to the exceptions described below.
The Regulation establishes the procedure for determining and paying the non-forfeiture guarantee fee and, where applicable, requesting an extension before the National Water Commission (“CONAGUA”).
In practical terms, concession holders or assignees who, for two consecutive years (eight quarters), have not fully or partially exploited, used, or utilized the volumes covered by their respective titles may avoid forfeiture of such volumes by paying the corresponding fee.
The computation is performed on a quarterly basis (January–March, April–June, July–September, and October–December); therefore, concession holders must continuously monitor their utilization volumes. Any period of eight consecutive quarters without active exploitation, use, or utilization may trigger the risk of forfeiture.
This requirement represents a significant administrative burden, particularly for holders of multiple concessions located in different basins.
The Regulation allows for up to two extensions, whether consecutive or non-consecutive, during the term of the relevant title. The request must be filed at least 15 business days before the end of the eighth quarter. In addition, the request must include a justification explaining the reasons for the lack of use, the grounds for retaining the volume, its relationship to the purpose of the concession, and the corresponding supporting documentation.
The requirement to demonstrate the reasons for the lack of use, the grounds for retaining the volume, and its connection to the purpose of the concession grants CONAGUA a degree of discretion in evaluating the merits of an extension request. Although CONAGUA has 45 business days to issue a decision, the Regulation does not establish objective criteria for such evaluation or clarify the consequences of a potential denial. This could create uncertainty for concession holders and assignees regarding the preservation of the corresponding volumes.
For any questions or comments, please do not hesitate to contact our expert team.
Legal Notice: This Client Alert is for informational purposes only and does not constitute legal advice or a formal opinion on any specific matter. The information contained herein reflects a general analysis prepared by our attorneys based on information available at the time of publication. Any reproduction, citation, or reference to this content must be expressly attributed to Mijares and should not be construed as a public statement or comment made by the firm to the media.
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