October 27, 2025
The expiration of rights over concessioned waters is a legal mechanism established under the National Water Law and its Regulations, which allows for the total or partial termination of the rights granted under a Concession Title when there has been inactivity in the exploitation or use of national waters for a consecutive period of two (2) years.
Non-Expiration Guarantee Fee for Water Volumes
The expiration of water volumes shall not apply when a justified cause exists, as provided in Article 29 Bis 3, Section VI of the National Water Law. Such causes include extraordinary circumstances affecting the Concession Title, as well as actions that the concessionaire may undertake, such as the payment of a non-expiration guarantee fee before the National Water Commission (“CONAGUA").
This fee constitutes a voluntary measure that holders of water concessions may choose to pay in order to preserve their rights and prevent the loss of unused water volumes. The payment must be completed within the first fifteen (15) business days of January 2026, after submitting a prior notice to CONAGUA.
Importance of the Measure
The purpose of the expiration mechanism is to promote the rational and efficient use of water resources by encouraging concessionaires to assess the feasibility of maintaining rights over unused water volumes, as well as the economic costs associated with doing so. While such rights remain valid, the unused volumes cannot be reassigned to third parties who could make effective use of the resource.
Potential Beneficiaries
This measure may benefit concession holders who have ceased to exploit or use, totally or partially, the national water volumes granted under their Concession Titles for two (2) consecutive years; namely, those volumes not used during 2024 and 2025.
Recommendation
If the holder of a Concession Title has not exploited or used national water volumes for two (2) consecutive years, it is recommended that they proceed with the payment of the non-expiration guarantee fee. This measure aims to prevent the declaration of expiration of such volumes and preserve the rights granted under the Concession Title.
At Basham, Ringe y Correa, S.C., we have the team and experience necessary to advise on the determination and payment of the non-expiration guarantee fee. Our administrative and environmental law practice groups are available to provide the required support for all procedures related to this matter.
SINCERELY,
Juan Carlos Serra
Adolfo Athie
Jesus Colunga
Diana Rangel