Oil Fields (Regulation and Development) Act,1948
Act No : 53
Section :
Power to make rules as respects mineral development.
6. Power to make rules as respects mineral development. (1) The Central Government may, by notification in the Official Gazette, make rules for the conservation and development of 1[mineral oils]. --------------------------------------------------------------------- 1 Subs. by Act 67 of 1957, s. 32 and Sch. III, for "minerals" (w.e.f. 1-6-1958). 2For the Mineral Concession Rules, 1949, see Gazette of India, 1949, Pt.I,p.2075 and for the Petroleum Concession Rules, 1949, see ibid., Extraordinary, p. 2713. 3Subs. by Act 67 of 1957, s. 32 and Sch. III, for "mineral" (w.e.f.1- 6-1958). --------------------------------------------------------------------- 7 (2)In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: - 1 * * * * * (c) the development of any 2[mineral oil resources] in any area by prescribing or regulating the use of any engines machinery or other equipment; (d) the regulation of the drilling, redrilling, deepening, shutting down, plugging and abandoning of oilwells in an oilfied and for the limitation or prohibition of such operation and for the taking of remedial measures to prevent waste of or damage to oil; (e) the regulation of the methods of producing oil in any oilfield, and the limitation or prohibition of such methods; (f) the compulsory notification of all new borings and shaft sinkings, and the preservation of boring records and specimens of cores of all new bore-holes; (g) the taking of samples from mines and new bore- holes; (h) the regulation of the arrangements for the storage of 3[mineral oils] and the stocks thereof that may be kept by any person; 4[(i) the collection of royalties, and the levy and collection of fees or taxes, in respect of mineral oils mined, quarried, excavated or collected;] (j) the submission by the owners or lessees of mines of special or periodical returns and reports, and the forms in which and the authorities to whom such returns and reports shall be submitted. 5[6A. Royalties in respect of mineral oils. (1) The holders of a mining lease granted before the commencement of the Oilfields (Regul- ation and Development) Amendment Act, 1969 (39 of 1969), shall, not- withstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any mineral oil mined, quarried, excavated or collected by him from the leased area after such commencement, at the rate for the time being specified in the Schedule in respect of that mineral oil. --------------------------------------------------------------------- 1Cls. (a) and (b) omitted by Act 67 of 1957, s. 32 and Sch.III (w.e.f.1-6-1958). 2Subs. by s.32 and Sch. III, ibid., for "mineral resources" (w.e.f. 1-6-1958). 3Subs. by s.32 and Sch. III, ibid,, for "minerals" (w.e.f. 1-6-1958). 4Subs. by Act 39 of 1969, s. 2, for cl. (i) (w.e.f. 1-1-1968). 5Ins. by s. 3, ibid. (w.e.f. 1-1-1968). ---------------------------------------------------------------------- 8 (2) The holder of a mining lease granted on or after the com- mencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1959),shall pay royalty in respect of any mineral oil mined, quarried, excavated or collected by him from the leased area at the 3 rate for the time being specified in the Schedule in respect of that mineral oil. (3)Notwithstanding anything contained in sub-section (1) or sub-section (2), no royalty shall be payable in respect of any crude oil, casing-head condensate or natural gas which is unavoidably lost or is returned to the reservoir or is used for drilling or other operations relating to the production of petroleum, or natural gas, or both. (4)The Central Government may, by notification in the Official Gazette, amend the Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral oil with effect from such date as may be specified in the notification: Provided that the Central Government shall not- (a) fix the rate of royalty in respect of any mineral oil so as to exceed twenty per cent of the sale price of the mineral oil at the oilfields or the oil wellhead, as the case may be, or (b)enhance the rate of royalty in respect of any mineral oil more than once during any period of three years] 2[(5) Notwithstanding anything contained in sub-section (4), the Central Government may, by notification in the Official Gazette, amend the Schedule so as to enhance the rate of royalty payable in respect of mineral oil, produced during the period beginning on the lst day of April, 1990 and ending on the 3lst day of March, 1993, to 24.52 per cent of the sale price of mineral oil at the oilfields or the oil well-head, as the case may be.]
Read All Comments
