Thursday , 26 April 2018

Farmers to receive shale gas compensation in Coahuila

An agreement has been reached for the peasant farmers who don’t legally possess title to the land in Coahuila to receive benefits from exploration and production of shale gas on their property. “We now have a permanent agreement in place for farmers where shale gas reserves exist. Instead of expropriation, they will receive a monthly compensation,” said Ramón Verduzco González, representative of Coahuila´s Confederación Nacional Campesina.

According to an article published in the local newspaper, El Diario de Coahuila, the agreement was reached with the coordinator of the Mining Petroleum Cluster, Rogelio Montemayor Seguy, the peasant farmers and the Governor of Coahuila, Rubén Moreira Valdez.

The agreement also applies to Guerrero, Villa Unión and Hidalgo, where they are undergoing exploration activities and possible production of shale gas.

It is worth mentioning that there was another proposal presented by Senator Gerardo Sanchez that outlined a plan for the peasant farmers to become shareholders or partners in the operating company involved in the gas exploration and production. This proposal did not go very far.

In Mexico, an “ejido” is an area of communal land used for agriculture, on which community members individually possess and farm a specific parcel. Ejidos are registered with Mexico’s National Agrarian Registry but the individual peasant who works the land does not necessarily own it, which makes it difficult to transfer, sell to a third party or even claim mineral rights in the case of the upcoming oil and gas exploration initiatives in Mexico by foreign or domestic energy companies.

by Redacción Gas Shale México

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