RAJKUMAR UNIVERSITY OF PETROLEUM & ENERGY STUDIES

GOI to make laws The Government of India is empowered under the constitution to make laws with regard to regulation and development of oil fields and mineral oil resources and petroleum and petroleum products

EXISTING LEGAL FRAMEWORK FOR UPSTREAM EXPLORATION Oilfield (Regulation & Development) Act, 1948 – Oilfield and development of mineral & oil resources

The Oilfields (Regulation & Development) Act, 1948 Basic enabling statute (ACT) for regulation of oil fields and for development of mineral oil resources including licensing and leasing of petroleum and gas blocks by the appropriate government

Definitions Covers mineral oils which is defined as including natural gas and petroleum [S.3(c)] Mining lease is defined exhaustively to cover all forms of exploring and exploiting mineral oils and all purposes connected thereto [S.3(d)] Oilfield means any area where any operation for the purpose of obtaining natural gas and petroleum, crude oil, refined oil, partially refined oil and any of the products of petroleum in a liquid or solid state is to be or is being carried on

Definitions The expression lessor and lessee respectively include a licensor and licensee

The Oilfields (Regulation & Development) Act, 1948 MAIN PROVISIONS Mining Lease should be granted in accordance with the rules made under the act [Section 4] Mining Lease granted contrary to section 4 shall be void and of no effect Authorises central government to make rules with regard to regulating grant of mining leases [S.5] Also empowers central government to make rules for the development of mineral oil [S.6]

SECTION 5 RULES HAS TO BE MADE WITH REGARD TO FEES TO BE PAID PERIOD OF LEASE RENT PAYABLE

SECTION 6 RULES HAS TO BE MADE WITH REGARD TO DEVELOPMENT OF MINERAL OIL REGULATE USE OF TOOLS REGULATE DRILLING, REDRILLING AND ABANDONING ETC… COLLECTION OF ROYALTY, TAX ETC…

The Oilfields (Regulation & Development) Act, 1948 Any contravention of the rule made under this act shall be punishable with imprisonment which may extend to six months or which fine of thousand rupees or both [Section 9(1)] Under section 11(1) the officer authorized by the central government is vested with power to inspect any mine, order the production of any document maintained in this regard or examine any person having the control of or connected with any mine Such officer shall be deemed to be a public servant within the meaning of section 21 of Indian Penal Code.

Section 12 Additional terms and conditions different from those rules (Production Sharing Agreement)