812.6363/1946
The Chargé in Mexico (Schoenfeld) to
the Secretary of State
Mexico, September 15,
1926.
[Received September 24.]
No. 2830
Sir: I have the honor herewith to enclose
clipping from the Diario Oficial of September 14,
1926, covering the text of a Presidential order dated August 24, last,
modifying the order of the Department of Industry of June 8, 1926, with
regard to the granting of petroleum drilling permits.
The Department will observe that this decree is substantially in the
terms of the proposed draft thereof, transmitted in Mr. Lane’s despatch
No. 2773, of September 3, 1926,71 and that, with the possible exception of the change
in the amount of bond required in the decree of June 8 and signature
thereof by the President personally, the objections advanced by the
United States in its recent notes on the subject have not been met.
. . . . . . . . . . . . . .
I have [etc.]
[Page 684]
[Enclosure—Translation72]
Executive Decree of August 24, 1926, Regulating
the Issuance of Provisional Permits for Drilling Petroleum
Wells
Order to the Department of
Industry, Commerce, and Labor
Special conditions governing provisional permits to drill petroleum
wells on lands the acquired rights to which have not been fully
proved by the petitioning companies:
- 1.
- The permits shall be essentially provisional, and shall be
subject to the beneficiaries proving legally their rights
within the period indicated for this purpose in each case,
which can never extend beyond December 31 of the current
year.
- 2.
- In order that these permits may be issued, the petitioning
company or person must first execute a bond for $100,000
(one hundred thousand pesos), to the satisfaction of this
Department for each one of the wells drilled upon the lands
on which he has not yet proved his rights, to guarantee the
value of the rights of the Nation to the petroleum which may
be extracted from each one of the wells drilled on these
lands, in case the beneficiary of the permits shall not
fully prove the legality of those rights within the period
indicated for this purpose.
- 3.
- If, as a result of the provisions of the foregoing
articles, the permits should be canceled, the beneficiary
thereof shall be obliged to refund the value of the national
rights to the petroleum which may have been extracted under
the permit, and if he does not do so, that Department shall
realize upon the bond furnished, making use of the
compulsory economic authority, to which the bondsmen must
expressly submit.
- 4.
- These permits are authorized for the sole purpose of not
interrupting petroleum exploitation, and they shall be
continued in their provisional character until the rights of
the beneficiaries are legally proved; and it shall be stated
in the permits that their issuance confers no rights
whatsoever upon the beneficiaries, and that by the mere use
thereof the beneficiaries signify their absolute conformity
to all the conditions enumerated in this Decree.
The Order of June 8 of the present year is hereby revoked.
Sufragio Efectivo. No Reelección.
National Palace, Mexico, D. F., August 24,
1926.
The President of the Republic,
P. Elías Calles
,
Rúbrica
Let it be fulfilled.
The Minister of Industry, Commerce, and
Labor,
L. N.
Morones
,
Rúbrica
