Bylaws for Hydrocarbons Operations

Last updated: 30 March 2022

This legislation outlines the regulatory structure of the oil and gas sector, including upstream, midstream and downstream activities. The Hydrocarbon Regulation and Control Agency (ARCH) is the technical-administrative body in charge of regulating, controlling and supervising technical and operational activities of the different segments of oil and gas industry.


The regulation does not have methane provisions, but establishes requirements that may affect related emissions, including safety measures and operational procedures for the different sectors of oil and gas industry. Furthermore, it states that developers shall conduct their activities in accordance with applicable standards and safety regulations, as well as industry best practice. 


It also charges the ARCH to supervise operations in order to ensure that these are carried out efficiently. Under Article 71, operators may be required to deliver free of charge the gas that is not used in their operations. The related beneficiary public company will pay only for the adaptation expenses necessary for this delivery. 

Art. 73 establishes that regulated entities should reduce as possible the waste, emissions, and flare of associated and natural gas to the atmosphere. If associated or natural gas is to be flared due to technical reasons, these shall be presented and approved by the Secretariat of Hydrocarbons. Some of the criteria used for the approval are the quantity and quality of gas, as well as the economic feasibility for transportation/utilization.

Regulated entities should also perform the measurement of gas to determine the amount that is used during processing and flaring.

The regulation also establishes requirements related to measurement, calibration, information provision, inspections, enforcement and pertaining sanctions.

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