Environmental

Companies wishing to develop an energy or environmental infrastructure project, build a manufacturing facility, or conduct business in environmentally sensitive areas or heavily regulated industries in Mexico are subject to a myriad of federal, state and local permitting requirements, particularly related to the environment. Mexican environmental authorities — especially at the state and local level —exercise considerable discretion when reviewing environmental and land-use permitting applications, creating additional risk for investors. Likewise, recent changes to Mexican environmental law have established that property owners may be jointly and severally liable for pre-existing environmental pollution.  

Therefore, industry and project developers must keep abreast of regulatory developments and proposed policy changes that may affect their investments, have a voice before decision-makers, and, if necessary, be positioned to file or defend claims before applicable administrative and judicial authorities. 

To this end, Solcargo advises and guides their clients through the related issues and procedures with respect to Mexican and international environmental law. Specific services offered by our well-renowned team of environmental attorneys are divided across four sub-practice areas:

  • Permitting and audits

  • Project development

  • Environmental litigation

  • Supporting our corporate team on transactions involving environmental issues

Permitting and audits 

Working with the client’s in-house or outside technical environmental team, Solcargo files, processes and defends a variety of permits, licenses, registrations, authorizations, concessions and other consents before federal, state and local authorities, including:

  • Mandatory environmental standards and product labeling certifications

  • Federal environmental consents, including water rights concessions and discharge permits; handling and treatment authorizations for hazardous waste generation; environmental impact assessments; risk assessments and single integrated environmental licenses (LAUs) before the SEMARNAT (Secretariat of the Environment & Natural Resources) and the National Water Commission  (CNA)

  • State and local land use, zoning, construction and operating consents

  • Rights of way before federal and local land use offices and private landowners

  • Design and implementation of environmental audits and other voluntary compliance instruments

Project development 

Solcargo’s environmental team advises and guides our clients throughout the feasibility, pre-construction, construction, and operational phases of developing projects and greenfield investments. Specific services during each of these phases are outlined below.

Feasibility analysis – including: (i) overviewing and briefing clients on the Mexican environmental regulatory framework; (ii) conducting environmental legal and regulatory feasibility analysis with respect to the proposed activity or project; and (iii) liaising with and advocating on behalf of clients before applicable government agencies in support of a proposed project. 

Pre-construction – including: (i) filing and processing before SEMARNAT the environmental impact authorization and risk study, as well as negotiating the conditions of such authorizations; (ii) designing and implementing a community relations strategy needed to obtain local and international financing as well as to obtain the environmental impact authorization; (iii) transfer of rights and duties when the environmental impact authorization has been obtained by a state enterprise in connection with a public bid; and (iv) analyzing site selection issues, such as environmental liabilities and other site risks.

Construction – including: (i) advising clients with respect to soil and water pollution measures; (ii) ensuring compliance with conditions imposed in the environmental impact authorization; (iii) attending to visits and inspections of the Federal Attorney’s Office for Environmental Protection (PROFEPA); and (iv) providing counsel on and monitoring contractual arrangements with subcontractors and suppliers to limit environmental liability.

Operation - see permitting description above. 

Environmental litigation

Solcargo handles numerous amounts of administrative, judicial and quasi-judicial proceedings related to environmental issues in Mexico. These actions range from inspection and compliance proceedings before PROFEPA, the CNA and their state law counterparts, to constitutional injunction (Amparo) suits filed in federal court that are appealing allegedly unlawful agency action.

Solcargo also represents clients with respect to criminal investigations before the federal Attorney’s General Office as well as during criminal Amparo proceedings before criminal courts.

Finally, the Firm represents clients with respect to: (i) citizen submissions before PROFEPA, (ii) submissions before the Mexico City Attorney’s Office for Environment and Zoning and similar agencies in other states, (iii) citizen submissions before the Commission for Environmental Cooperation, and (iv) NAFTA Chapter XI litigation related to environmental matters.

Representative clients and deals 

Recently, Solcargo has represented the following clients related to environmental matters, among others, in Mexico:

  • The Commission for Environmental Cooperation, created under the NAFTA framework and responsible for overseeing the correct administration and application of environmental laws in the three treaty countries

  • Saint Martin Construcciones, S.A. de C.V., a leading hydrocarbon-contaminated soil remediation company, in the client’s dealings with PEMEX, Mexico’s state-owned oil giant, including the performance of contracts valued at over US$80 million.

  • RECSA del Centro, S.A. de C.V. Solcargo a subsidiary of the French company TREDI, in their operations in Mexico, particularly regarding the handling, transportation and final disposition of Polychlorinated Biphenyls (PCB’s).

  • Proeco Corporation, a Canadian environmental services company, in negotiating and drafting contracts with public and private sector clients in hazardous waste management and infrastructure.

  • Biogas Technology LTD y Eco Securities LTD, in negotiating with various municipal governments concessions to exploit landfill gas and convert it to electricity and carbon credits under the Kyoto Protocol, as well as negotiating drafting environmental infrastructure agreements with the client’s multinational customers in Mexico.

  • Hotel Iberostar (Riviera Maya) in processing and obtaining environmental consents for constructing the hotel’s golf club and course.

  • Gurpo Tancah, the most important urban developer in Tulum, Quintana Roo, in designing a strategy, for their developments, to ensure compliance with environmental and urban planning regulations.

  • A Veracruz housing construction company in negotiating with authorities the environmental consents related to developing a low-income housing project adjacent to a mangrove ecosystem.

  •  Nabors Mexico, an offshore oil platform construction company, in environmental permitting matters.

Useful government sites: