LIQUEFIED PETROLEUM GAS NEW REGULATION

REGULATION´S RECOGNIZED ACTIVITIES LICENSES Transport By means of gas tanker truck, gas tanker ship, trailer, semitrailer Gas pipeline Gas pipeline for self-consumption Storage Deposit plant Supply pant LPG fuel station for self-consumption Usable Instalation for self-consumption Distribution Distribution plant LPG fuel station Commercial establishment Pipelines Art.14 LPGR

REGULATED ACTIVITIES BY THE ENERGY MINISTRY (LPG Dept) BY THE ENERGY MINISTRY (LPG Dept) Storage, Transport, and Distribution of LPG, as long as its not through pipelines, the LPG Department will grant the following licenses: Storage, Transport, and Distribution of LPG, as long as its not through pipelines, the LPG Department will grant the following licenses: Transport by means of trailers, gas trucks, or gas tankers Storage for deposit, supply plants, and commercial LPG fuel stations BY THE ENERGY REGULATORY COMMISSION BY THE ENERGY REGULATORY COMMISSION LPG first hand sales LPG first hand sales Transportation and distribution of LPG by means of pipelines Transportation and distribution of LPG by means of pipelines

OTHER REGULATED ACTIVITIES LPG products certification LPG products certification On petitioners requests, the interested parts may obtain a certification by the Energy Ministry On petitioners requests, the interested parts may obtain a certification by the Energy Ministry Validity will be determined by applicable Mexican Official Norms Validity will be determined by applicable Mexican Official Norms The interested parts in obtaining registration from the Energy Ministry for manufacturing, commercializing, and destroying storage equipment must comply with requisites of Article 83 The interested parts in obtaining registration from the Energy Ministry for manufacturing, commercializing, and destroying storage equipment must comply with requisites of Article 83 The Energy Ministrys Verification Office can authorize companies and private individuals to act as verification units The Energy Ministrys Verification Office can authorize companies and private individuals to act as verification units

SANCTIONS May be applied by the Energy Ministry or by the Energy Regulatory Commission through the powers vested in them May be applied by the Energy Ministry or by the Energy Regulatory Commission through the powers vested in them Faculties are conferred on the Federal Competition Commission in case of monopolistic activities Faculties are conferred on the Federal Competition Commission in case of monopolistic activities PEMEX is entitled to suspend supply at the request of the Energy Regulatory Commission and the Energy Ministry PEMEX is entitled to suspend supply at the request of the Energy Regulatory Commission and the Energy Ministry Office of the Federal Prosecutor for the Consumer (PROFECO) keeps powers Office of the Federal Prosecutor for the Consumer (PROFECO) keeps powers

Main differences with prior regulation More emphasis in complying with Mexican Official Norms is put on authorized entities More emphasis in complying with Mexican Official Norms is put on authorized entities More power is vested in the Federal Competition Commission More power is vested in the Federal Competition Commission New activities are regulated like Verification and LPG related products New activities are regulated like Verification and LPG related products Exclusive rights for providing services ends Exclusive rights for providing services ends