Chile Court Exempts Railway Firm FERRONOR from Water Use Patent

The Santiago Court of Appeals ruled in favor of Empresa de Transporte Ferroviario S.A. (FERRONOR), overturning a resolution by the Dirección General de Aguas (DGA) that required the company to pay a patent for non‑use of a groundwater right in La Higuera, Elqui Province, Coquimbo Region. The court recognized that an extended drought, a dry source well, theft of capture equipment and the need to preserve water for human consumption made effective use of the right impossible. It affirmed that while the non‑use patent is intended to discourage speculative holding of water rights, exceptional circumstances such as severe scarcity justify exemption. The DGA’s position that active capture works are required for exemption was rejected in light of the extraordinary conditions documented by the agency itself.