THE FUTURE OF HYDROCARBON
DEVELOPMENT IN THE GULF OF MEXICO
By Richard J. McLaughlin
Harte Research Institute for Gulf of Mexico Studies
Texas A&M University – Corpus Christi
Affiliate Scholar, Center for U.S. and Mexican Law
University of Houston Law Center
1982 United Nations Law of the Sea
Convention
• Completed after 10 continuous years of negotiations
• Extraordinarily important because:
– Involved every nation on earth
– Decisions were made based on consensus
– Created instantaneous customary law (with a few exceptions)
166 nations are parties to UNCLOS
Mexico ratified Convention in 1983
Cuba ratified Convention in 1984
U.S. refused to become party but accepts as customary
law – Senate is currently debating accession
Entered into force in Nov. 1994 without U.S.
Marine Juridical Zones
• UNCLOS creates marine
juridical zones from
land seaward into the
oceans
• The coastal nation has
the most legal rights
close to shore and the
least legal rights farther
out to sea
• These zones begin at
the low-tide baseline
- Map of Exclusive Economic Zones
Eastern Gap
Cuba Exclusive
Economic Zone
Source: PEMEX
National Oil Spill Commission Report
Calls for Tri-national Cooperation
Distribution of spilled oil in water (black) and shorelines (red)
DWH
(2010)
3 (4.9 mi BBL)
5,000 ftmdepth
• 780,000
206
million
gallons
• 87
days
(Apr-Jul)
87 days
(Apr-Jul)
• 1,500
m depth
• 66
50km
miles
offshore
offshore
• Dispersants at depth and
surface
(1979-80)
200 km
• 480,000
m3 (3 mi BBL)
170 ft depth
• 9.7
(Jun-Mar)
140months
million
gallons
• 50
depth (Jun-Mar)
9.7mmonths
• 80
offshore
50km
miles
offshore
• Dispersants on surface
U.S and Mexico Agreement Finalized
February 20, 2012
Summary of Agreement’s Operational
Provisions
• Agreement applies to all hydrocarbons located
within 3 statute miles of maritime boundary
• Does not apply in Texas State Waters (10.3 mi.)
• Obligation to notify other party of a
transboundary reservoir within 60 days
• For the first time, Mexican State-owned
hydrocarbons company PEMEX may enter into
joint ventures with foreign companies
• Establishes a system for determining the
allocation of the transboundary reservoir
– If parties cannot agree, an expert will be named
– If parties still cannot agree, a Joint Commission
representing each nation will break deadlock
– If no agreement, either party may submit to
arbitration
• Encourages, but does not require, that a
unitization agreement be completed
• Depletion of other nation’s resources could
violate international law
Summary of Agreement’s
Safety/Environmental Provisions
• Subject to national law, each party has the right
to inspect all facilities in the unit area
• If necessary to avert “risk to life or serious
personal injury or significant damage to the
environment” inspectors from either nation may
stop all operations for a period of 4 hours
• Parties shall adopt “where appropriate” common
safety and environmental standards
Status of Hydrocarbon Agreement
• Ratified by the Mexican Senate April 12, 2012
• Ratified by the United States December 23,
2013
• Energy Reform = Amendments to Mexico’s
Constitution signed into law Dec. 20, 2013
• Currently both nations are developing
secondary legislation
Gracias
The University of Houston is an EEO/ AA institution.