By Baker & McKenzie

On June 8 2005 a new Law for Ecological Balance and Environmental Protection for the State of Chihuahua ("State Law") was enacted, abrogating the prior State Ecological Law. The State Law will become effective on August 31, 2005 and will generate new obligations, sanctions or penalties for the industrial sector, its legal representatives and its personnel.

The State Law includes new provisions for the classification and management of waste. It establishes additional reporting requirement and the mandatory implementation of management plans.

In the area of wastewater, the State Law fails to resolve the controversy regarding State and Municipal jurisdiction over wastewater discharges into urban sewer systems. As a result, the implementation of these new provisions should be carefully reviewed.

The State Law increases the areas where regulators may impose administrative penalties, for failing to comply with it.

Also, the State Law includes specific criminal penalties against parties incurring in any of the activities defined as crimes.

The following crimes carry a prison sentence of:

Up to 8 years:
1. Ordering or authorizing the implementation of an activity that causes or may cause harm to the ecosystems.

2. Ordering or authorizing the discharge, deposit or infiltration of wastewater discharges or wastes into water bodies, if the polluted water is delivered for consumption to a population center.

Up to 5 years:
1. Those who surpass the maximum permissible limits established by the Official Mexican Standards.

2. If serious harm is caused to the public health or the ecosystems.

Up to 4 years:
1. Those who record false information in the registries, logs or any other environmental document.

2. Those who destroy, alter or hide the information or documents.

3. Those who do not comply with the technical, corrective or security measures imposed by the regulators.

The State Law imposes additional obligations to industry. Therefore, the increase in attributions granted to the Department of Ecology and Urban Development, upon its entry into force, requires people working in the industrial sector to be keenly aware of its obligations and rights.

We will be happy to provide you or your company information or advice on the implications of the State Law and on how to comply with its provisions.