Enjoy SmartLeges Premium!

Subscribe to SmartLeges Premium and enjoy the following advantages:

  • Consult as many laws as you need with no additional charge
  • Consult almost any law in several countries with the new advanced search engine. All legislation within reach!
  • Enjoy all SmartLeges functions without restrictions
See the plans

An essential and free application for professionals and students in the legal sector

Read more
 

Sign up for free!

Would you like to consult this and other laws complete?

Sign up for free to consult all the laws of SmartLeges in your mobile phone or tablet, as well as underline text, add notes...

Sign up for free!

Share this law Other laws of India
Email Facebook Twitter Google Linkedin Tumblr

OIL FIELDS (REGULATION AND DEVELOPMENT) ACT

Ministry of Law and Justice

Act nº 53 of 1948


  • Schedules
  • Act nº 53 of 1948

Preamble

THE OILFIELDS (REGULATION AND DEVELOPMENT) ACT, 1948

[Act, No. 53 of 1948]

[8th September, 1948]

PREAMBLE

An Act to provide for the regulation of1[**] oilfields and for the development of2[mineral oil resources].

Whereas it is expedient in the public interest to provide for the regulation of1[**] oilfields and for the development of2[mineral oil resources]3[***];

It is hereby enacted as follows:--

1. The words 'Mines and' were omitted in the long title and in the Preamble, by the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).

2. Substituted for 'minerals', by the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).

3. The words 'to the extent hereinafter specified' were omitted, by the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).


Section 1. Short title, extent and commencement

(1) This Act may be called The1[Oilfields] (Regulation and Development) Act, 1948.

2[(2) It extends to the whole of India3[***].]

(3) it shall come into force on such date4as the Central Government may, by notification in the Official Gazette, appoint in this behalf.

1. Substituted for the words 'Mines and Minerals' by the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).

2. Substituted for the former sub-section, by A.I.O., 1950 (26-1-1950).

3. The words 'except the State of Jammu and Kashmir were omitted by Act 63 of 1957, Section 32 and Schedule II (with effect from 1-6-1958).

4. The Act came into force on 25-10-1949.


Section 2. Declaration as to expediency of control by Central Government

[Omitted by the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).]

Section 3. Definition

In this Act, unless there is anything repugnant in the subject or context,--

(a) the expressions 'lessor' and 'lessee' respectively include a licensor and licensee;

(b) 'mine' means any excavation for the purpose of searching for or obtaining1[mineral oils] and includes an oilwell;

(c)1["mineral oils"] include natural gas and petroleum;

(d) 'mining lease' means a lease granted for the purpose of searching for, winning, working, getting, making merchantable, carrying away or disposing of1[mineral oils] or for purposes connected therewith, and includes an exploring or a prospecting licence;

(e) '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.

1. Substituted for 'minerals' by the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).


Section 4. No mining lease to be valid unless it is in accordance with this Act

(1) No mining lease shall be granted after the commencement1of this act otherwise than in accordance with the rules made under this Act.

(2) Any mining lease granted contrary to the provisions of Sub-section (1) shall be void and of no effect.

1. That is 25-10-1949.


Section 5. Power to make rules as respects mining leases

(1) The Central Government may, by notification in the Official Gazette, make rules1for regulating the grant of mining leases or for prohibiting the grant of such leases in respect of any2[mineral oil] or in any area.

(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:--

(a) the manner in which, the3[mineral oils] or areas in respect of which and the persons by whom, applications for mining leases may be made and the fees to be paid on any such application:

(b) the authority by which, the terms on which, and the conditions subject to which, mining leases may be granted;

(c) the maximum or minimum area and the period for which any mining lease may be granted, and the terms on which leases in respect of contiguous areas may be amalgamated;

(d) the fixing of the maximum and minimum rent payable by a lessee, whether the mine is worked or not.

1. For Mineral Concession Rules, 1949.

2. Substituted for the words 'mineral' by the Mines and Minerals (Regulation and Development) At, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).

3. Substituted for the word 'mineral', by the Mines and Minerals (Regulation and Development) At, 1957 (67 of 1957), Section 32 and Schedule III (with effect from 1-6-1958).


Section 6. Power to make rules as respects mineral oils development

(1)The Central Government may, by notification in the Official Gazette, make rulesfor the conservation and development of 1 [mineral oils].

(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:--

2 [*****]

(c)the development of any 3 [mineral oil resources] in any area byprescribing or regulating the use of any engines, machinery or other equipment;

(d)the regulation of drilling, redrilling, deepening, shutting down, plugging andabandoning of oilwells in an oilfield and for the limitation or prohibition ofsuch operations and for the taking of remedial measures to prevent waste of ordamage to oil;

(e)the regulation of the methods of producing oil in any oilfield, and thelimitation or prohibition of such methods;

(f)the compulsory notification of all new borings and shaft sinkings, and thepreservation 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 1 [mineraloils] 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 inrespect of mineral oils mined, quarried, excavated or collected;]

(j)the submission by the owners or lessees of mines of special or periodicalreturns and reports, and the forms in which and the authorities to whom suchreturns and reports shall be submitted.

1.Substituted for the words 'minerals' by the Mines and Minerals (Regulation andDevelopment Act, 1957 (67 of 1957), Section 32 and Schedule III (with effectfrom 1-6-1958).

2.Clauses (a) and (b) were omitted, by the Mines and Minerals (Regulation andDevelopment Act, 1957 (67 of 1957), Section 32 and Schedule III (with effectfrom 1-6-1958).

3.Substituted for 'mineral resources', by the Mines and Minerals (Regulation andDevelopment Act, 1957 (67 of 1957), Section 32 and Schedule III (with effectfrom 1-6-1958).

4.Substituted for former Clause (i) Oilfields (Regulation and Development)Amendment Act, 1969 (39 of 1969), Section 2 (with retrospective effect from1-1-1968).


Section 6A. Royalties in respect of mineral oils

1[6A. Royalties in respect of mineral oils

(1) The holder of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969, shall, notwithstanding 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.

(2) The holder of a mining lease granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969, shall pay royalty in respect of any mineral oil mined, quarried, excavated or collected by him from the leased area at the 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

2["(4) The Central Government may, 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 and different rates may be notified in respect of same mineral oil mined, quarried, excavated or collected from the areas covered by different classes of mining leases:

Provided that the Central Government shall not fix the rates 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 well-head, as the case may be.

(5) If the Central Government, with a view to encourage exploration in offshore areas, is satisfied that it is necessary in the public interest so to do, it may by notification in the Official Gazette, exempt generally, either absolutely or subject to such conditions as may be specified in the notification, mineral oil produced from such areas from the whole or any part of the royalty leviable thereon.".]

1. Inserted by Oilfields (Regulation and Development) Amendment Act, 1969), Section 3 (with retrospective effect from 1-1-1968).

2. Substituted by the Oilfields (Regulation and Development) (Amdt) Act, 1998 w.e.f. 03-09-1998. Prior to Substitution it read as under

"(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 well-head, as the case may be, or

(b) enhane the rate of royalty in respect of any mineral oil more than once during any period of [three years]

[(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 royalty payable in respect of mineral oil, produced during the period beginning on the 1st day of April, 1990 and ending on the 31st 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.]


Section 7. Power to make rules for modification of existing lease

(1) The Central Government may, by notification in the Official Gazette, make rules for the purpose of modifying or altering the terms and conditions of any mining lease granted prior to the commencement of this Act so as to bring such lease into conformity with the rules made under Sections 5 and 6:

Provided that any rules so made which provide for the matters mentioned in Clause (c) of Sub-section (2) shall not come into force until they have been approved, either with or without modifications, by1[the House of the People].

(2) The rules made under Sub-section (1) shall provide--

(a) for giving previous notice of the modification or alteration proposed to be made thereunder to the lessee, and where the lessor is not the Central Government also the lessor, and for affording them an opportunity of showing cause against the proposal;

(b) for the payment of compensation by the party who would benefited by the proposed modification or alteration to the party whose right under the existing lease would thereby be adversely affected; and

(c) for the principles on which, the manner in which and the authority by which the said compensation shall be determined.

1. Substituted for the words 'the Central Legislation' by A.L.O., 1950 (26-1-1950).


Section 8. Delegation

The Central Government may, by notification in the Official Gazette, direct that any power exercisable under this Act shall be exercised subject to such conditions, if any, as may be specified therein by such officer or authority as may be specified in the direction.

Section 9. Penalties

(1) Any rule made under any of the provisions of this Act may provide that any contravention thereof shall be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.

(2) Whoever, after having been convicted of any offence referred to in Sub-section (1), continues to commit such offence shall be punishable for each day after the date of the first conviction during which he continues so to offend, with fine which may extend to one hundred rupees.

Section 10. Laying of rules and notifications

1[10. Laying of rules and notifications

Every rule made under this Act and every notification issued2[under Sub-section (4) or Sub-section (5) or Section 6A] shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.]

1. Substituted by Oilfields (Regulation and Development) Amendment Act (20 of 1984) Section 3 (11-5-84).

2. Substituted for "under Sub-section (4) of Section 6A" by the oilfields(Regulation and Development) (Amdt) Act, 1998 Act, 1998 w.e.f. 03-09-1998.


Section 11. Power of inspection

(1) For the purpose of ascertaining the position of the working, actual or prospective, of any mine or abandoned mine or for any other purpose mentioned in this Act or the rules made thereunder, any officer authorised by the Central Government in this behalf shall have the right to--

(a) enter and inspect any mine;

(b) order the production of any document, book, register or record in the possession or power of any person having the control of or connected with, any mine;

(c) examine any person having the control of, or connected with, any mine.

(2) Any officer authorised by the Central Government under Sub-section (1) shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code.

Section 12. Relaxation of rules in special cases

The Central Government may, if satisfied that it is in the public interest so to do, authorise in any case the granting of any mining lease or the working of any mine on terms and conditions different from those laid down in the rules made under Sections 5 and 6.

Section 13. Act to be binding on the Government

1[13. Act to be binding on the Government

The provisions of this Act shall be binding on the Government.]

1. Substituted for the former Section 13, by A.L.O., 1950 (26-1-1950).