Geothermal Law

This Geothermal Law is one of the "21 secondary laws" passed by the Mexican legislation after the constitutional reform. This particular law included following statements that have a key impact on geothermal energy sector in Mexico. The law:

• Provides a legal framework for identifying, exploring and exploiting geothermal sites
• Provides a clear definition of hydrothermal geothermal fields
• Defines geothermal concessions and regulates prospection and exploration.

The concessions can last up to 30 years, cannot be sold but can be transferred after formal notification.

According to the law explorations permits require the deposit of a refundable guarantee of 1% of total planed exploration budget. Exploitation concessioners require the deposit of a guarantee of 0.5% of total investment required until commercial operation, at which point it is refundable.

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