File No. 812.512/1241

Special Representative Rodgers to the Secretary of State

No. 85

Sir: I have the honor, in further acknowledgment of the Department’s telegram No. 116, June 2, 5 p.m., and with reference to my telegram in reply, to forward herewith translation of the decree which provides for the payment of the sum of 300 pesos National gold every two months as an inspection fee in the matter of the exploitation of oil lands.

I have [etc.]

James L. Rodgers

Direction of Mines and Petroleum—Petroleum Department

Circular No. 13

In view of the fact that the petroleum industry is being developed by means of the formation of a large number of companies with capital sufficient to contribute in an equitable manner to defray public expenses, and considering that the services which are rendered to said companies by the Department of Petroleum, as well as the technical commission, and by the inspectors’ offices established in the petroleum field occasion considerable expense to the National Treasury, this Secretariat, by decision of the Citizen First Chief of the Constitutionalist Army, in charge of the Executive Power, under to-day’s date has ordered the following:

First. From the first day of June next, each one of the individuals or companies now registered in the Secretariat of Fomento and those which hereafter shall so register, submitting the corresponding manifestation in conformity with Circular No. 11, with the object of exploiting the petroleum industry in any of its branches, shall pay the sum of ($300) three hundred pesos national gold every two months as inspection fee, whatever may be the amount of the capital stock manifested, such fee to be paid bimonthly in advance in the offices of the Secretariat of Hacienda.

Second. This Secretariat will not concede permits for the drilling of wells or for the execution of any class of work pertaining to the exploitation of the petroleum industry, to the companies or individuals who do not duly pay the corresponding inspection fee and not only from those having work under way, but also from such as have not yet commenced work, who do not pay the fee referred to, it shall be collected by the Secretariat of Hacienda under economic coactive authority, without prejudice to the suspension of work in process of execution being also ordered by this Secretariat.

Third. Companies which by virtue of previous contracts contribute a stipulated amount for inspection expenses, are excluded from the payment of this fee.

The foregoing is hereby given to the public and to the companies or individuals interested, for their due knowledge and observance.

Constitution and Reforms.

Pastor Rouaix,

The Secretary in charge of the Office