Supreme Court summons La Pampa in Los Nihuiles royalty dispute

The Supreme Court of Argentina has ordered the province of La Pampa to be summoned to participate in a legal dispute regarding the distribution of hydroelectric royalties from the Los Nihuiles Complex. The court has granted La Pampa 60 days to issue a statement regarding the lawsuit.

The litigation was initiated in 2022 by the province of Mendoza against the National Executive Power. Mendoza is seeking the “absolute and irreparable nullity” of Decree 1560/1973, arguing that the regulation improperly transferred 50 percent of the royalties produced by the complex to La Pampa despite the facility being located on the Atuel River.

Mendoza is requesting that the National State be condemned to pay damages and restore 100 percent of the royalties, plus interest and costs, dating back to the decree's implementation in 1973. As of December 2021, Mendoza estimated the total claim at $67,338 million.

Judges Horacio Rosatti, Carlos Rosenkrantz, and Ricardo Lorenzetti declined to rule on the statute of limitations at this stage, determining it to be a matter of the core merits of the case. The court instead granted the request to incorporate La Pampa into the proceedings.