Mexico: New CONAGUA regulations published, reshaping the strategy for preserving water rights
The new regulation governing the determination and payment of the non-expiration guarantee fee for national water rights redefines how to prevent the expiration of water rights, with clearer deadlines, digitized procedures and a reset of payment and extension opportunities, requiring companies to review their compliance and water resource management strategies.
On June 16, 2026, the draft decree issuing the new regulation governing the determination and payment of the non-expiration guarantee fee for national water rights was published on the Integrated Regulatory Governance Platform.
The draft decree repeals the regulation in force since May 27, 2011 and introduces substantive amendments that national water concessionaires and assignees must consider for the proper preservation of their rights.
Main changes
The new instrument redefines the procedure through which concessionaires and assignees of national waters may avoid the expiration of volumes that have not been exploited, used or utilized for two consecutive years, through the payment of an economic fee.
The most relevant changes include: (i) clarification of the deadlines for submitting notices, payments and extension requests; (ii) the digitization of procedures through CONAGUA electronic platforms; (iii) a more detailed extension regime allowing up to two extensions during the term of the title; and (iv) a particularly relevant transitional regime that resets the calculation of payment and extension opportunities for all existing titles, regardless of payments made under the prior regulation.
What is the non-expiration guarantee fee?
The non-expiration guarantee fee is the amount that a concessionaire or assignee may elect to pay in order to avoid a declaration of total or partial expiration with respect to the volume of water that has not been exploited, used or utilized for two consecutive years (eight quarters).
Payment of the fee interrupts the expiration process and allows the concessioned or assigned volumes to be preserved.
How is it calculated?
The fee is determined by multiplying the authorized fee per cubic meter (established annually by the Ministry of Finance and Public Credit in the Federal Revenue Law) by the minimum volume of water not utilized during the last eight quarters.
That volume is obtained by comparing, for each of the two years comprising the analysis period, the difference between the concessioned volume and the volume actually utilized, taking the lower result as the basis.
Key deadlines and obligations
The regulation establishes a more precise compliance framework that must be strictly observed:
- Prior notice. The interested party must submit a notice to CONAGUA, through the relevant electronic platform or system, at least fifteen business days before the end of the eighth quarter.
- Payment of the fee. Payment must be made within 45 business days following the end of the two-consecutive-year period, either through the mechanisms authorized by the Ministry of Finance and Public Credit or through the electronic systems enabled by CONAGUA.
- Submission of proof of payment. Once payment has been made, the interested party will have 15 business days to submit the corresponding proof of payment to CONAGUA so that the authority may validate the interruption of expiration.
Extension regime
The regulation allows up to two extensions to be requested during the term of the title, whether consecutively or otherwise.
The request must be submitted at least 15 business days before the end of the eighth quarter and must be accompanied by duly documented justification explaining the reasons why the concessioned volume was not utilized and the reasons for preserving it. CONAGUA must resolve the request within 45 business days following its submission.
Where extensions are not requested consecutively, the intervening period does not constitute authorization to cease exploiting the volumes covered by the title.
Consequences of non-compliance
Volumes that are not protected through payment of the fee (referred to as uncovered volumes) will be subject to the declaration of expiration provided for in the National Waters Law and its regulations.
In practical terms, this entails the definitive loss of the right to utilize those volumes.
In addition, where CONAGUA detects inconsistencies or omissions in the information submitted, it may request clarifications within 30 business days following the expiration of the payment period, granting up to 15 business days to cure the observations made.
The “clean slate” under the transitional regime
Undoubtedly, the most relevant aspect of the draft decree is the transitional regime that accompanies the new regulation.
- Reset of the calculation of opportunities
The fourth transitional article provides that the first payment opportunity and the two extensions contemplated in the regulation will begin to be calculated as from the first complete two-consecutive-year period without exploitation that occurs after the decree enters into force.
Accordingly, regardless of the payments or extensions exercised under the 2011 regulation, holders of concessions and assignments will begin with a new three-opportunity framework: a first payment opportunity and up to two extensions.
- Pending procedures
Procedures initiated before the new regulation enters into force will continue to be processed and resolved in accordance with the provisions in force at the time of their submission.
- Transitional regime
Titles that, upon the entry into force of the decree, have accumulated periods of non-exploitation of less than two years and whose term concludes thereafter must, on a one-time basis, be subject to the 2011 regulation.
However, any payment made under this special framework will not be counted within the new opportunities contemplated in the regulation.
Failure to make such payment, however, will prevent the titleholder from benefiting from this transitional treatment.
Digitization of procedures
The draft decree expressly incorporates the possibility of submitting notices, requests and payments through electronic platforms and systems administered by CONAGUA, consolidating the digitization of a procedure that has historically been managed predominantly in person.
Final comments
The new regulation provides a clearer and more structured framework for the preservation of water rights in the face of expiration.
In particular, the reset of the calculation of payment and extension opportunities represents a relevant window of opportunity for holders of concessions and assignments, who should strategically review their authorized volumes and adopt timely compliance measures.
However, the loss of volumes due to expiration remains a consequence with significant impact on assets, making it essential to implement monitoring mechanisms that allow risks of non-compliance to be identified in a timely manner and the benefits provided under the new regime to be leveraged.
Contacts
-
+52 55 5029 8500
-
+52 55 5029 8500
