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斐济石油法(勘探和开发)
Petroleum(Exploration and Exploitation) Act
【发布部门】斐济国会 【发文字号】
【发布日期】2011年03月01日 【实施日期】1978年10月06日
【时效性】现行有效 【效力级别】法律
【法规类别】斐济法规规划 【来源】斐济法律网站

斐济石油法(勘探和开发)

【法律沿革】

本法于1978年10月6日制定,并于1979年、1985年、1995年、2010年和2011年修订。

【内容介绍】

本法共分15部分,计101条。包括基础内容,勘探许可证,生产许可证,管道许可证,损害与赔偿,设施注册,记录与账目,土地使用,当地提炼,违犯与处罚以及其他规定等。

【内容出处】

https://www.laws.gov.fj/Acts/DisplayAct/749


Petroleum(Explorationand Exploitation) Act 1978

ActsNos. 14 of 1978, 12 of 1979,
17 of 1985

 [6 October 1978]

PARTI-PRELIMINARY

Short title

1.ThisAct may be cited as the Petroleum (Exploration andExploitation) Act.

Interpretation

2. In this Act, unless the context otherwiserequires-

"approved"means approved by the Minister;

"block"means a block constituted as provided in subsection (2) of section 5;

"casingheadpetroleum spirit" means any petroleum or liquid hydrocarbons obtained fromnatural gas by separation or by any chemical or physical process;

"construct"includes "place" and construction has a corresponding meaning;

"continentalshelf" means the seabed and subsoil of those submarine areas adjacent to thecoasts of the islands of Fiji, but beyond the territorial limits of Fiji, to adepth of two hundred metres below the surface of the sea, or, beyond thatlimit, to where the depth of the superjacent waters admits of exploitation ofthe natural resources of those areas;

"dealing"means any transaction of whatsoever nature by which any legal or equitableinterest in or affecting an existing or future licence is or may be created,transferred, assigned, affected or otherwise dealt with, whether directly orindirectly;

"designatedarea" means an area designated under the provisions of section 3 of the Continental Shelf Act;
(Cap. 149.)

"Director"means the Director of Mines;

"discoveryblock" means, for the purpose of sections 22 and 23, a blockwhich has been nominated under section 22;

"document"includes any map, book, record or writing;

"explorationlicence" means a licence to explore for petroleum granted under theprovisions of section 16;

"goodoil-field practice" means all those things that are generally accepted asgood and safe in the carrying on of exploration for petroleum, or in operationsfor the recovery of petroleum, as the case may be;

"holder"in relation to an exploration licence, production licence or pipeline licencemeans the person whose name is for the time being shown in the appropriateRegister as being the holder of such licence;

"inspector"means any person designated by the Minister under the provisions of section7 and includes the Director;

"licence"means and includes any exploration licence, production licence or pipelinelicence granted under the provisions of this Act; "licensed area" means any area thesubject of a licence granted under the provisions of this Act;

"location"means a block or blocks declared by the Minister to be a location under theprovisions of section 23;

"Minister"means the Minister responsible for petroleum exploitation matters;

"offshore-land"means and includes any land situated below ordinary high-water-mark;

"onshore-land"means and includes any land situated above the ordinary high-water-mark;

"petroleum"means-

(a) any naturallyoccurring hydrocarbon, whether in a liquid or solid state;

(b) any naturallyoccurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state;or

(c) any naturallyoccurring mixture of one or more hydro whether in a gaseous, liquid or solidstate, and one or the following, that is to say, hydrogen sulphide, helium andcarbon dioxide,

andincludes any petroleum as defined in paragraphs (a), (b) or (c) that has been returned to anatural reservoir;

"petroleumpool" means a naturally occurring discrete accumulation of petroleum;

"pipeline"means a pipe or system of pipes that is used for conveying petroleum; andincludes all structures for protecting or supporting a pipeline and all loadingterminals, works and buildings and all fittings, pumps, tanks, appurtenancesand appliances used in connection with a pipeline but does not include-

(a) a pipeline that isused-

(i)for returning petroleum to a natural reservoir;

(ii)for conveying petroleum for use for the purposes of petroleum explorationoperations or operations for the recovery of petroleum;

(iii)for conveying petroleum that is to be flared or vented; or

(iv)for conveying petroleum from a well-head to a terminal station without passingthrough another terminal station, or for the collection of petroleum, withinthe area of the production licence in which it is produced or recovered;

(b) a pipeline constructedunder the authority of a permit issued under the provisions of the PetroleumAct;
(Cap. 190)

(c) a pipeline constructedor to be constructed by the Crown; or

(d) a pipeline constructedor to be constructed on land used for residential, business, agricultural,commercial or industrial purposes, designed for use solely for the residential,business, agricultural, commercial or industrial purposes carried on that landand situated wholly within the boundaries of that land;

"pipelinelicence" means a licence granted under the provisions of 38;

"productionlicence" means a licence to carry out operations for the recovery ofpetroleum granted under the provisions of section 26;

"pumpingstation" means equipment for pumping petroleum or water and includes anystructure associated with that equipment;

"secondaryline" means any pipe or system of pipes used for any of the purposesreferred to in sub-paragraphs (i), (ii), (iii) or (iv) of paragraph (a) ofthe definition of "pipeline";

"tankstation" means a tank or system of tanks for holding or storing petroleumand includes any structure associated with that tank or system of tanks;

"terminalstation" means a pumping station, tank station or valve station declaredby the Minister by notice in the Gazette to be a terminal station for thepurposes of this Act;

"valvestation" means an equipment for regulating the flow of petroleum andincludes any structure associated with that equipment;

"vessel"means a vessel used in navigation, other than air navigation, and includes abarge, lighter or other floating vessel;

"waterline" means a pipe or system of pipes for conveying water in connectionwith petroleum exploration operations or operations for the recovery ofpetroleum;

"well"means a hole in the earth or in the seabed or subsoil made by drilling, boringor any other means in connection with exploration for petroleum or operationsfor the recovery of petroleum, but does not include a seismic shot hole;

"well-head",in relation to any petroleum, is such valve station as is agreed between theholder of a production licence and the Minister within such reasonable periodas may be allowed by the Minister or in default of such agreement as may bereasonably determined by the Minister as being that well-head;

"well-headvalue", in relation to any petroleum, is such amount as is agreed betweenthe holder of the production licence and the Minister as being the market valueof such petroleum at the well-head or in default of such agreement within threemonths or such further period as the Minister may reasonably allow, such amountas may be reasonably determined by the Minister as being that value.

Reservation of petroleum resources to the Crown

3. All petroleum in or under all lands within anydesignated area of whatsoever ownership or tenure and in whosoever possessionor enjoyment they may be, are, and shall be deemed always to have been, theproperty of the Crown.

Rights of Crown to explore for and exploitpetroleum resources

4. (1) Subject to the provisions of Part V, the Crowneither alone or in conjunction with any other person shall have full liberty atall times to explore for or carry out any operations for the recovery or conveyanceof petroleum on or under any lands within a designated area which are not thesubject of an exploration licence or production licence granted under theprovisions of this Act.
(2) In addition to its rights under the provisions of subsection (1), the Crowneither alone or in association with or through the agency of any other personshall have the full right and liberty at all times to carry out petroleumexploration operations in the course of any scientific investigation and forthat purpose to enter upon any lands within a designated area whether suchlands are the subject of any licence granted under the provisions of this Actor not:
Provided that all such operations shall be carried out in such a manner as toavoid any unreasonable interference with any other operations being lawfullycarried out by any other person by way of exploration for, recovery orconveyance of, any mineral, whether petroleum or not, or by way of constructionor operation of a pipeline.
(3) The rights conferred upon the Crown under the provisions of subsections (1)and (2) may only be exercised by the Minister or any person duly authorised byhim on that behalf.

Graticulation of earth's surface and constitutionof blocks

5. (1) For the purpose of this Act, the surface ofthe earth shall be deemed to be divided into graticular sections each of whichis bounded-

(a) by portions of twomeridians of longitude that are separated by six minutes of longitude from eachother and are each separated by six minutes, or any multiple of six minutes, oflongitude from the meridian of Greenwich;

(b) by portions of twoparallels of latitude that are separated by six minutes of latitude from eachother and are each separated by six minutes, or any multiple of six minutes, oflatitude from the Equator.
(Amended by Act 12 of 1979, s. 2.)

(2)For the purpose of this Act each such graticular section or any part thereofthat is within a designated area shall constitute a block.

Reservation of blocks

6. (1) The Minister may by notice in the Gazettedeclare any block o blocks specified in such notice, not being a block orblocks in respect of which an exploration licence or production licence is inforce, to be a reserved area over which no application for an explorationlicence may be made except in accordance with the provisions of subsection (2).
(2) The Minister may call for tenders for the right to explore for and exploitthe petroleum resources in the whole or any part of any reserved area under theprovisions of subsection (1) and may grant an exploration licence to any personon such terms and conditions, whether in accordance with the provisions of thisAct or not, as the Minister may think fit but, save as varied by any such termsand conditions, the provisions of this Act shall be applicable to any suchexploration licence.

Inspectors

7. Such persons as may be designated by the Ministerin writing for that purpose shall be inspectors for the purposes of this Act.

Powers of inspectors

8. (1) An inspector, at all reasonable times by dayor by night but so as not to unreasonably impede or obstruct any work inprogress-

(a) shall have access toany part of any designated area and to any structure, vessel, aircraft orbuilding in that area that, in his opinion, has peen, is being or is to be usedin connection with petroleum exploration operations, operations for the recoveryof petroleum, or operations connected with the construction or operation of apipeline in that area;

(b) may inspect, examineand test all boreholes and wells and any pl ant, equipment, buildings and otherthings that, in his opinion, have been, are being or are to be used in thatarea in connection with any of such operations;

(c) may inspect and checkthe accuracy of all appliances, weights, measurements, records, maps and planswhich are kept by any person in connection with any such operations;

(d) may inspect allsamples of strata, petroleum or water required to be kept under the provisionsof this Act;

(e) may enter anystructure, vessel, aircraft, building or place in that area, in which, in hisopinion, there are any documents relating to any of such operations and mayinspect, take extracts and make copies of any of those documents;

(f) by order in writing,may direct that any such operations shall be suspended until such arrangementshave been made as are in his opinion necessary to prevent-

(i)danger to life or property;

(ii)unreasonable interference with navigation or fishing;

(iii)pollution of any water-well, spring, stream, river, lake, reservoir, estuary orharbour, the high or territorial seas or shoreline by petroleum or mud or anyother fluid, gas or substance which might contaminate the sea; water orshoreline or cause harm or destruction to marine life;

(g) may arrest withoutwarrant any person whom he may find, or whom he reasonably suspects of havingcommitted, any offence against the provisions of this Act and the personarrested shall be taken with as little delay as possible to the nearest policestation to be dealt with according to law.

(2)Every person who is the occupier or person in charge of any building, structureor place or is the person in charge of any ship, aircraft or equipment referredto in subsection (1) shall provide an inspector with all reasonable facilitiesand assistance for the effective exercise of his powers under the provisions ofthis section.

Powers of Director, etc., to require information tobe furnished

9. (1) If the Director or any inspector has reason tobelieve that any person is capable of giving any information or producing anydocuments relating to petroleum exploration operations, operations for therecovery of petroleum or operations connected with the construction oroperation of a pipeline in a designated area, he may, by notice in writingserved on that person, require that person-

(a) to furnish him inwriting, within such period and in such manner as may be specified in suchnotice, any such information; or

(b) to attend before himor such other person as is specified in such notice, at such time and place asis so specified and there to answer questions relating to those operations andto produce such documents relating to those operations as are specified in suchnotice.

(2)No person shall be excused from furnishing any information, answering anyquestion or producing any document when required to do so under the provisionsof this section on the ground that the information so furnished, the answer tothe question or the production of the document might tend to incriminate him ormake him liable to any penalty, but any information so furnished or his answerto any such question shall not be admissible in evidence against him in anyproceedings other than any proceedings against him for any offence under theprovisions of section 92.
(3) The Director or any inspector may administer an oath to a person requiredto attend before him under the provisions of subsection (1) and may examinethat person on oath.

Compliance with CompaniesAct

10. (1) No licence shall be granted under theprovisions of this Act to any company incorporated outside Fiji unlesssuch company has first complied with the provisions of any Act for the time being in force relating to theregistration of foreign companies.
(2) Any licence granted under the provisions of this Act to any incorporated company may be cancelled bythe Minister if such company fails to comply in any material respect with anyof the provisions of any Act for the time being in force relating to companieswhich may be applicable to such company.

Power of attorney

11. On payment of the prescribed fee the holder of anylicence granted under the provisions of this Act may authorise and appoint by power of attorney anyperson to act for him or on his behalf in respect of any share or interest insuch licence and a certified or duly attested duplicate copy of such power ofattorney shall be filed with the Director.

Accredited agent

12. (1) Every partnership or company which applies fora licence un let the provisions of this Act shall at the time of such application register atthe office of the Director the name and address of an accredited agent residingin Fiji, and such agent shall, when registered, be personally responsible underthe provisions of this Act for all matters, acts and omissions in connectionwith such licence in the same manner as if such licence were granted in hisname as his own proper y.
(2) If at any time any such partnership or company revokes the registration ofits accredited agent, it shall register some other person as its accreditedagent.
(3) A registered accredited agent may at any time resign his appointment bygiving notice in writing to the Director, but such resignation shall not takeeffect until the expiration of forty-eight hours after the receipt of such noticeby the Director.
(4) Within forty-eight hours after receipt of notice from the Director of thefact that its registered accredited agent has resigned, the partnership orcompany in question shall register some other person as its accredited agent.
(5) Nothing in this section shall be deemed to relieve a company or the membersof a partnership of any obligations imposed under the provisions of thisAct in regard to any licence held by such company orpartnership.

Deposits

13.(1) As a guarantee for the due performance of anyobligation imposed by or under the provisions of this Act or of any licence granted thereunder, the Directormay require any person, either on first making application for a licence or atany time during the currency thereof, to deposit with him such sum, or suchsecurity in a like amount, as may be prescribed, and if such person fails tomake such deposit within thirty days or such further time as the Director mayspecify, the application may be refused or the licence suspended or cancelled.
(2) Where, after due notice, a person has failed to meet any obligation imposedupon him by or under the provisions of this Act or of any licence granted thereunder, the Directormay take such steps as he shall deem practicable to fulfil such obligation and,for such purposes, may expend from any deposit whatsoever made by that personsuch sum as he shall consider reasonable. Any expense incurred by the Directorin so doing shall be a lawful deduction from such deposit.
(3) Where any deposit or portion thereof has been expended in accordance withthe provisions of subsection (2), the Director may by notice in writing requirethe depositor to deposit, within such time as the Director may specify in suchnotice, a further sum equal to the amount so expended. Failure to do so withinthe time so specified shall render any licence held by the depositor under theprovisions of this Act liable to suspension or cancellation.
(4) Upon the cancellation of any licence in respect of which any sum has beendeposited with the Director, the person by whom such sum was deposited or inwhom the right of refund has been vested by transfer, may make application inwriting to the Director for the refund of such deposit or balance thereof andthe Director may authorise such refund to be made:
Provided that-

(a) the Director maywithhold such refund for such time as he may think fit so that he may make anyinvestigations he considers desirable into the obligations of the personentitled to such refund; and

(b) such refund shall bewithout prejudice to any claim or proceedings existing or which may arisethrough the breach by the holder of such licence or by his servants or agentsof any of the provisions of this Act.

(5)Upon the transfer of any licence the right to a refund of any sum depositedunder the provisions of this section shall be vested in the transferee.

Government officers prohibited from acquiringrights

14. No public officer shall knowingly acquire or holdany direct or indirect right or interest under any licence under the provisionsof this Act and any document or dealing purporting to conferany such right or interest on any such officer shall be null and void:
Provided that, with the permission of the Chairman of the Public ServiceCommission, a person temporarily employed by the Government may retain any suchright or interest acquired prior to accepting Government employment.

 

PART II-EXPLORATION LICENCES

Application for exploration licence

15.(1) Any person desirous of exploring for petroleumin any part of a designated area may apply to the Minister for the grant of anexploration licence under the provisions of this Act.
(2) Every application for an exploration licence shall be lodge with theDirector and shall-

(a) be in writing in theprescribed form addressed to the Minister;

(b) be accompanied by theprescribed fees;

(c) be in respect of notmore than seventy blocks;

(d) be accompanied byparticulars of-

(i)the proposals of the applicant for work and expenditure in respect of theblocks specified in the application;

(ii)the technical qualifications of the applicant and his employees;

(iii)the technical advice available to the applicant;

(iv)the financial resources of the applicant;

(v)such other matters that the applicant wishes to be considered by the Minister.

(3)The blocks specified in an application for an exploration licence shall beblocks that-

(a) constitute a singlearea; and

(b) are such that eachsuch block has a side in common with at least one other block specified in theapplication.

(4)The Director may, and if so directed by the Minister shall, by notice inwriting require the applicant to furnish within the time specified in suchnotice such further information in writing in connection with the applicationas in the opinion of the Director or the Minister is required for the properconsideration of the application and if such information shall not have beenfurnished within the time specified in the notice the application shall unlessthe Minister otherwise declares be deemed to have lapsed and become void.

Grant of exploration licence

16. Subject to the provisions of thisAct and to any terms and conditions not inconsistenttherewith that he may think fit the Minister may grant an exploration licencein respect of the whole or any part of the area applied for unless theprovisions of section 15:
Provided that an exploration licence may not be granted in respect of any blockor blocks which are already the subject of an exploration licence or productionlicence previously granted under the provisions of this Act.

Rights conferred by exploration licence

17. Subject to the provisions of thisAct and in accordance with the terms and conditions towhich such licence is subject, the holder of an exploration licence shall havethe exclusive right to explore for petroleum, and to carry on such operationsand execute such works as are necessary for that purpose, in the licensed area.

Term of exploration licence

18. Unless previously cancelled or surrendered underthe provisions of this Act, an exploration licence shall remain in force-

(a) in the case of alicence granted other than by way of renewal, for a period of five yearscommencing on the day from which such licence has effect; and

(b) in the case of alicence granted by way of the renewal of such a licence, for a period of threeyears commencing on the day after the day on which the last previousexploration licence in respect of the block or blocks specified in theexploration licence so granted ceases to have effect.

Renewal of exploration licence

19.(1) Subject to the provisions of section 20,the holder of an exploration licence who shall have performed and observed allof the terms, covenants and conditions thereof, may, upon payment of theprescribed fees, apply to the Minister in the prescribed form for and shall begranted the renewal of the licence in respect of such blocks the subject of thelicence as are specified in the application.
(2) An application for renewal of an exploration licence shall be lodged withthe Director not less than thirty days before the expiration of such licence:
Provided that the Minister may for reasons that he considers sufficientauthorise the Director to receive an application for the renewal of anexploration licence less than thirty days before, but not in any case after,the date of expiration of the licence.

Application for renewal to be in respect of reducedarea

20. (1) The number of blocks in respect of which anapplication for the renewal of an exploration licence may be made shall notexceed the number calculated as follows:-

(a) where the number ofblocks in respect of which the expiring licence is in force is an evennumber-one-half of that number; or

(b) where the number ofblocks in respect of which the expiring licence is in force is an oddnumber-one-half of the next highest number that is divisible by two.

(2)A block that is, or is included in, a location and in respect of which theexpiring exploration licence is in force, shall be disregarded for the purposeof making a calculation under the provisions of subsection (1).
(3) The blocks specified in an application for the renewal of explorationlicence shall be blocks that-

(a) constitute a single area;and

(b) such that each suchblock has a side in common with at least one other block specified in theapplication.

(4)The minimum number of blocks in respect of which the renewal of an explorationlicence may be granted under the provisions of this section shall be nineexcept where the number of blocks available in accordance with the calculationmade under the provisions of subsection (1) is less than nine, in which casethe renewal of the expiring exploration licence may be applied for and grantedover such number of blocks as are available in accordance with such calculationor such greater number of blocks, but not exceeding nine as the Ministerconsiders appropriate in the circumstances.

Discovery of petroleum

21. Where petroleum is discovered within any area thesubject of an exploration licence, the holder shall-

(a) forthwith notify theDirector of such discovery;

(b) within a period ofthree days after the date of such discovery, furnish the Director with full particularsin writing of such discovery;

(c) within such time asmay be reasonably required for that purpose, do all such things as may berequired to be done to determine the chemical composition and physicalproperties of that petroleum and to conduct such formation and other tests asare in keeping with good oil field practice; and

(d) within such time asthe Director may by notice in writing require, furnish the Director withparticulars in writing of any one or more of the following:-

(i)the chemical composition and physical properties of that petroleum;

(ii)the nature of the subsoil in which the petroleum occurs; and

(iii)any other matter relating to the discovery as may be specified by the Directorin such notice.
(Amended by Act 12 of 1979, s. 3.)

Nomination of block for purpose of declaringlocation

22.(1) Subject to compliance with all of therequirements of section 21, the holder of an exploration licence maynominate a block within the area other than the subject of his explorationlicence as a discovery block for the purpose of section 23.
(2) If the holder of an exploration licence fails within a period of three months,or such extended time as may be allowed by the Director, from the date ofnotification to the Director of the discovery of petroleum under the provisionsof section 21, to nominate a block as a discovery block under theprovisions of subsection (1) the Director may by notice in writing require suchholder to nominate a block and if such holder fails within a period of threemonths from the date of service on him of such notice or within such furtherperiod as the Director may allow, to make such nomination the Director maynominate any block within the licensed area as being the discovery block.
(3) A block may not be nominated as a discovery block under the provisions ofthis section if it is, or is included in an existing declared location, or ifit is such that if it were so nominated and the declaration under theprovisions of section 23 were made, the block within which the discoveryof petroleum was in fact made would not form part of the location so declared.
(4) A block may not, without the consent of the Director, be nominated by theholder of an exploration licence under the provisions of this section if suchblock immediately adjoins another block which has already been nominate as adiscovery block and that other discovery block is a block-

(a) in respect of which such exploration licence is inforce;

(b) that is included in an existing declared location;and

(c) that was specified as a discovery block for thepurpose of the declaration of that location.

Declaration of location

23. When a block has been nominated by the holder ofan exploration licence as a discovery block under the provisions of section 22,the Minister shall by notice in the Gazette declare-

(a) that block; and

(b) such of the blockswithin the same licensed area that immediately adjoin that block and are notincluded in an existing declared location,to be a location for the purposes ofthis Act:
Provided that the Minister may if-

(i)so required by the holder of the exploration licence; and if

(ii)he is satisfied that there is sufficient justification for his doing so,bynotice in the Gazette, revoke such declaration.

Immediately adjoining block

24. For the purposes ofsections 22, 23 and 25, a block shall be deemed to immediately adjoin another block ifthe two blocks have a side in common or are joined together at one point only.

 

 

PART III-PRODUCTION LICENCES

Application for production licence

25. (1) The holder of an exploration licence which isin force in respect of any block or blocks constituting a location may at anytime within the application period, apply to the Minister for the grant of aproduction licence under the provisions of this Act over such number of immediately adjoining blocksas are specified in subsections (2) and (3).
(2) The number of blocks over which the holder of an exploration licence shallbe primarily entitled to the grant of a production licence shall be-

(a) where seven or moreblocks constitute the location concerned-four of those blocks;

(b) where six or fiveblocks constitute the location concerned-three of those blocks;

(c) where four or threeblocks constitute the location concerned-two of those blocks;

(d) where two blocksconstitute the location concerned-those two blocks; and

(e) where one blockconstitutes the location-that block.

(3)Notwithstanding the provisions of subsection (2), the holder of an explorationlicence in respect of any block or blocks constituting a location may apply tothe Minister for the grant of a production licence in respect of any number ofimmediately adjoining blocks constituting the location whether such number isgreater or less than his primary entitlement as set out in subsection (2), andmay from time to time within the application period apply to the Minister forthe variation of such licence to include in the licensed area any other immediatelyadjoining block or blocks included in the location.
(4) The application period in respect of an application under the provisions ofthis section shall be-

(a) the period of twoyears after the date of declaration of the location under the provisions ofsection 23; or

(b) such other period,being not less than two years nor more than five years after the date ofdeclaration of the location as the Minister, on application in writing by theholder of the exploration licence being served on him within such period of twoyears, may allow.

(5)Every application for the grant, or variation, of a production licence shall belodged with the Director and shall-

(a) be in writing in theprescribed form and addressed to the Minister;

(b) be accompanied by theprescribed fees;

(c) be accompanied by theparticulars of the proposals of the applicant for work and expenditure inrespect of each block specified in the application; and

(d) may set out such othermatters that the applicant wishes to be considered by the Minister.

(6)The Minister may, at any time, by notice in writing require the applicant tofurnish within the time specified in such notice, such further information inwriting in connection with such application as in the opinion of the Ministeris required.

Grant of production licence

26. (1) Where an application has been made for aproduction licence under the provisions of section 25 and the applicanthas-

(a) furnished allinformation required by the Minister under the provisions of subsection (6) ofthat section; and

(b) complied with theconditions of the exploration licence in force in respect of the blocks thesubject of his application for a production licence,

theMinister shall grant to the applicant a production licence in respect of theblocks specified in the application.
(2) A production licence may be granted subject to such conditions notinconsistent with the provisions of this Act as the Minister sees fit and specifies in suchlicence.

Rights conferred by production licence

27. Subject to the provisions of thisAct, the holder of a production licence shall have theexclusive right -

(a) to carry on operationsfor the recovery of petroleum in the licensed area;

(b) to explore forpetroleum in the licensed area; and

(c) to carry on such otheroperations and execute such works in the licensed area as are necessary forthose purposes.

Term of licence

28. Unless previously cancelled or surrendered underthe provisions of this Act, a production licence shall remain in force-

(a) in the case of a licence granted otherwise than byway of renewal of a licence- for a period of twenty-one years, commencing onthe day on which the licence has effect;

(b) in the case in the case of a licence granted byway of the first renewal of a licence- for a period of twenty-one yearscommencing on the day after the day on which the previous production licenceceases to have effect; and

(c) in the case of a licence granted by way ofrenewal, other than a first renewal of a licence-for such period, not exceedingtwenty-one years as the Minister may determine and specifies in the licence,commencing on the day after the day on which the last previous productionlicence in respect of the blocks specified in the licence so granted ceases tohave effect.

Application for renewal of production licence

29. (1) The holder of a production licence may fromtime to time, upon payment of the prescribed fees, apply to the Minister in theprescribed form for the renewal of the licence in respect of such blocks thesubject of the licence as are specified in the application.
(2) An application for the renewal of a production licence shall be lodged withthe Director not less than six months before the expiration of such licence:
Provided that the Minister may for reasons that he considers sufficientauthorise the Director to receive an application for the renewal of such alicence less than six months before, but not in any case after, the expirationof the licence.

Grant or refusal of renewal of production licence

30.(1) Where the holder of a production licence whohas complied with the conditions of the licence applies under the provisions ofsection 29 for the renewal ofthe licence, the Minister-

(a) shall, if theapplication is in respect of the first renewal of such licence; or

(b) may, if theapplication is in respect of a renewal, other than the first renewal, of thelicence,

granthim the renewal of the licence.
(2) Where the holder of a production licence who has not complied with theconditions of the licence applies under the provisions of section 29 forthe renewal of the licence the Minister, if he is satisfied that specialcircumstances exist that justify the renewal of the licence, may grant therenewal of the licence or if he is not so satisfied may refuse to grant therenewal of the licence:
Provided that the Minister shall not if the application is in respect of thefirst renewal of the licence, refuse to grant the renewal of the licenceunless-

(a) he has by notice inwriting served on the holder of the licence given not less than one month'snotice of his intention to refuse to grant the renewal of the licence;

(b) he has sent a copy ofsuch notice to such other persons, if any, as he sees fit;

(c) he has in such notice-

(i)given particulars of his reason for the intention;

(ii)specified a date on or before which the holder of the licence or any personupon whom a copy of the notice is served may submit written representations onany matter that he wishes the Minister to consider;

(d) he has taken intoaccount any representations submitted to him before the date so specified.

Partial cancellation of exploration licence ongrant of production licence

31. (1) Upon the grant of a production licence underthe provisions of section 26, the exploration licence then in force inrespect of all blocks that become the subject of such production licence shallbe deemed to have been cancelled in respect of such blocks.
(2) In the event of the holder of the exploration licence n t makingapplication to the Minister within the application period referred to insubsection (4) of section 25 for the grant of a production licence inrespect of any of the blocks constituting the location the exploration licencemay be cancelled by the minister at the expiration of the said applicationperiod in respect of all or any of the blocks which are included in thelocation concerned but are not the subject of such a production licence.
(3) The Minister may, at any time after the cancellation of any explorationlicence in respect of any block under the provisions of subsection (2) call forapplications for, and may in his discretion grant, an exploration licence or aproduction licence to any person in respect of such block as he sees fit andsubject to such conditions as to royalty rates or otherwise as he sees fit:
Provided that-

(a) such conditions are nomore favourable to the holder of the licence so granted than as are otherwiserequired under the provisions of this Act; and

(b) except as modified byany such conditions the provisions of his Act shall be applicable to any exploration licence orproduction licence granted under the provisions of this subsection.

Works to be carried out

32.(1) The holder of a production licence shallsubject to any exemption granted by the Minister under the provisions ofsubsection (4) be required to carry out such works as may be approved by theMinister in relation to exploration for, or operations for the recovery of,petroleum in the licensed area.
(2) The value of the works required to be carried out under the provisions ofsubsection (1) shall be not less than-

(a) during the first yearof the term of the licence, an amount calculated by multiplying the sum of$175,000 by the number of blocks in respect of which the licence is in force;

(b) during each subsequentyear of the term of the licence-

(i)if no petroleum has been recovered from the licensed area during the lastpreceding year of the term of the licence, an amount calculated in accordancewith paragraph (a); and

(ii)if petroleum has been recovered from the licensed area during the lastpreceding year of the term of the licence, if the amount calculated inaccordance with paragraph (a)exceeds the value of that petroleum, the amount of such excess.

(3)If during any year of the term of his licence the holder of a productionlicence fails to comply with the requirements of subsection (1), the Ministermay recover from such holder, by action in a court of competent jurisdiction anamount equal to the value of the works that such holder was required to carryout during that year of the term of the licence after deduction therefrom ofthe value of all works in fact carried out by such holder in the licensed areaduring that year.
(4) The Minister may, if he is satisfied that special circumstances exist thatjustify his doing so and subject to such conditions as he thinks fit, exemptthe holder of a production licence from compliance with the requirements ofsubsection (1).
(5) For the purposes of this section the value of any petroleum shall be thewell-head value of that petroleum.

Directions as to recovery of petroleum

33.(1) Where petroleum is not being recovered from anarea the subject of a production licence and the Minister is satisfied thatthere is recoverable petroleum in that area he may, by notice in writing,served on the holder of such licence, direct such holder to take all such stepsas are necessary and practicable for the recovery of petroleum in the licensedarea.
(2) Where petroleum is being recovered in any area the subject of a productionlicence and the Minister is satisfied that the rate of recovery of suchpetroleum is either insufficient or excessive, he may, by notice in writingserved on the holder of such licence, direct such holder to take all such stepsas are necessary and practicable to increase or reduce the rate at which suchpetroleum is being recovered to such rate as the Minister specifies in suchnotice.
(3) If the Minister is not satisfied with any steps taken or being taken by theholder of a production licence to whom a direction has been given under theprovisions of either of subsections (1) or (2), he may by notice in writingserved on such holder give such directions as the Minister considers necessaryfor or in relation to the recovery of petroleum in the licensed area or theincrease or reduction in the rate of such recovery.

Unit development

34. (1) If at any time during the term of a productionlicence the area the subject of such licence includes any part of a petroleumpool any other part of which petroleum pool is included within any other areathe subject of another production licence, the holder of such licence-

(a) may subject to theapproval of the Minister enter into an agreement in writing for or in relationto the co-ordination of the operations for the recovery of petroleum from thatpetroleum pool; and

(b) shall, if so directedby the Minister by notice in writing, within such period as may be specified bythe Minister in such notice, enter into such an agreement.

(2)At any time after the expiration of the period specified in any notice givenunder the provisions of paragraph (b) of subsection (1), the Ministermay by notice in writing served on the holder of any such production licencegive to such holder such directions as the Minister thinks necessary for thepurpose of securing the more effective recovery of petroleum from thatpetroleum pool.

Licence holder to be consulted

35. The Minister shall not give a direction under theprovisions of either of sections 33 or34 unless he has given to thelicensee or licensees concerned a reasonable opportunity to makerepresentations to him concerning the proposed direction.

 

PART IV-PIPELINE LICENCES

 

Minister may authorise entry onto lands for purposeof survey

36. (1) The Minister may, on application being made tohim in writing in that behalf by any person who satisfies the Minister of hisintention to apply for a pipeline licence, grant a permit authorising suchperson either specifically or generally to enter from time to time, with suchassistants, equipment and materials as he thinks fit, upon any land within thearea specified in such permit for the purpose of making surveys and preliminaryinvestigations in respect of the construction of the pipeline to which thelicence for which he proposes to apply will relate.
(2) Any person granted a permit under the provisions of subsection (1) may doall things that he considers necessary for the purpose of the survey andinvestigation, including the drilling or digging of holes and the affixing andsetting up of such pegs, marks or poles as may be required for that purpose.
(3) Before entry on any land is made under the provisions of this section thepermit holder shall first give notice in writing to the owner or occupier ofhis intention to enter thereon and if so required by such owner or occupiershall produce the permit under which he claims authority to enter on the land:
Provided that he shall not enter on any unalienated native land unless sheshall have sent copies of such notice to the Native Land Trust Board and to theCommissioner for the Division in which such land is situated and has compliedwith all reasonable directions given by such Commissioner for the maintenanceof amicable relations with the owners of the land.

Application for a pipeline licence

37.(1) The holder of a production licence, or any otherperson who has entered, or proposes to enter, into an agreement with any suchholder conveyance of petroleum by means of a pipeline from any area the subjectof a production licence, may at any time while that production licence is inforce apply to the Minister for the grant of a pipeline licence under theprovisions of this Act.
(2) An application for a pipeline licence shall be lodged with the Director andshall-

(a) in writing in the prescribed form addressed to theMinister;

(b)be accompanied by the prescribed fee;

(c) be accompanied by particulars of-

(i)the proposed design and construction of the pipeline;

(ii)the proposed size and capacity of the pipeline;

(iii)the proposals of the applicant for work and expenditure in respect of theconstruction of the pipeline;

(iv)the technical qualification of the applicant and office employees;

(v)the technical advice available to the applicant;

(vi)the financial resources available to the applicant;

(vii)all agreements entered into or proposed to be entered into by the applicant foror in relation to the supply or conveyance of petroleum by means of thepipeline;

(viii)all agreements entered into, or proposed to be entered into, by the applicantunder the provisions of section 45or 46 with the owners oroccupiers of any onshore lands over which any of the pipeline is to beconstructed;

(d) accompanied by a plandrawn to an approved scale-

(i)showing the route proposed to be followed by the pipeline;

(ii)showing the situation of all pumping stations, tank stations valve stations,terminal facilities and other permanent appurtenances of a substantial natureintended to be use in connection with the operation of the pipeline;

(iii)specifying particulars of all onshore lands over which any part of the pipelineis to be constructed;

(e) be accompanied bycopies of all notes served in accordance with the provisions of subsection (4);and

(f) may set out any othermatters that the applicant wishes to be considered by the Minister.

(3)The Minister may at any time by notice in writing served on the applicant,require him to furnish to the Minister, within the time specified in thenotice, such further information relating to the application as may be requiredby the Minister.
(4) Before lodging his application for a pipeline licence, the applicant shallserve notice in writing on each owner and each occupier, if any, of any landover which any part of the pipeline is to be constructed, of his intention tomake such application.
(5) If the Minister is of the opinion that, for any reason, the route proposedto be followed by a pipeline is inappropriate, he may by notice in writingserved on the applicant require the applicant-

(a) to amend the planlodged under the provisions of paragraph (d)of subsection (2) to follow such other route as the Minister considersreasonable and convenient for all persons who may be affected by theconstruction of the pipeline;

(b) to serve notices inwriting of such amendments on the owners and occupiers of lands proposed to beaffected by such amendments and to deliver copies of all such notices to theDirector, within such time as may be specified by the Minister.

Grant or refusal of pipeline licence

38.(1) Where anapplication has been made for a pipeline licence under the provisions ofsection 37 and-

(a) the Minister issatisfied that the applicant has made adequate provision or gives security tothe satisfaction of the Minister for the payment of all damages andcompensation payable under the provisions of Part V; and

(b) a period of thirty dayshas elapsed since the date on which the last of the notices required to beserved under the provisions of subsections (4) and (5) of section 37 have been saved,

theMinister, after taking into consideration any representations made to him withrespect to the application and in particular the matters referred to insubsection (2),

(i)shall, if the application is in respect of the construction of a pipeline forthe conveyance of petroleum recovered in a licensed area in respect of whichthe applicant is the holder of a production licensed and the applicant hascomplied with the conditions to which such production licence is subject; or

(ii)may, if the application is made by any other person,

grantto the applicant a pipeline licence for the conveyance of petroleum over suchroute and subject to such conditions as may be specified by the Minister insuch licence.
(2) In considering an application for a pipeline licence the Minister shallhave regard to-

(a) the public interest;

(b) the financial andtechnical ability of the applicant, to construct, and maintain the pipeline;

(c) whether theconstruction of the pipeline would be likely to contravene the provisions ofany town planning scheme under the Town Planning Act; and
(Cap. 139.)

(d) whether theconstruction and operation of the pipeline along the proposed route would beunsuitable by reason of the pipeline likely to interfere unnecessarily with anyimprovements, improved land, flora, fauna or scenic attractions or for anyother reason that the Minister considers sufficient.

(3)The Minister shall not refuse to grant a pipeline licence unless he has-

(a) by notice in writing served on the applicant,given not less than one month's notice of his intention to refuse to grant suchlicence;

(b) served a copy of such notice on such other person,if any, as he considers would be adversely affected by such refusal;

(c) in such notice-

(i) given particulars of the reasons for suchintention; and

(ii) specified a date, being not less than onemonth after the date of service of such notice, on or before which theapplicant or any other person upon whom a copy of the notice is served maysubmit written representations on any matters that he wishes the Minister toconsider; and

(d) taken into account all matters so submitted forhis consideration.

(4)A pipeline licence may be granted subject to such condition not inconsistentwith the provisions of this Act as the Minister sees fit and specifies in suchlicence.
(5) The conditions referred to in subsection (4) may include a condition thatthe licence holder shall complete the construction of the pipeline within suchperiod as may be specified in the licence.

Rights conferred by a pipeline licence

39. Subject to the provisions of thisAct and in accordance with the terms and conditions towhich such licence is subject the holder of a pipeline licence shall have theright-

(a) to construct apipeline of the design, construction, size and capacity specified in suchlicence along the route and in the position so specified;

(b) to construct allpumping stations, tank stations and valve stations specified in such licence inthe positions so specified;

(c) to operate andmaintain that pipeline and those pumping stations; tank stations, and valvestations; and

(d) to carry on such otheroperations, to execute such works and to do all such things as are necessaryfor or incidental to the construction and operation of that pipeline and ofthose pumping stations, tank stations and valve stations.

Term of pipeline licence

40. (1) Unless previously cancelled or surrenderedunder the provision this Act, a pipeline licence shall remain in force-

(a) for a period oftwenty-one years; or

(b) where the Minister isof the opinion that, having regard to the dates of expiration of the productionlicences in force in respect of the licensed areas from which petroleum is, oris to be, conveyed by means of the pipeline, a shorter period is appropriate,for such period being less than twenty-one years as the Minister determines andspecifies in the pipeline licence.

(2)The period for which a pipeline licence remains in force, commences-

(a) in the case of alicence granted otherwise than by way of renewal of a licence-on the day onwhich the licence has effect; and

(b) in the case of alicence granted by way of renewal-on the day after the day on which the lastprevious licence in respect of the said pipeline ceases to have effect.

Application for renewal of pipeline licence
41.
(1) The holder of a pipeline licence may from time to time, uponpayment of the prescribed fee, apply to the Minister in the prescribed form forthe renewal of the licence.
(2) An application for the renewal of a pipeline licence shall be lodged withthe Director not less than six months before the expiration of such licence:
Provided that the Minister may for reasons that he considers sufficientauthorise the Director to receive an application for the renewal of such alicence less than six months before, but not in any case after, the expirationof the licence.

Grant or refusal of renewal of pipeline licence

42. Where the holder of a pipeline licence appliesunder the provisions of section 41for the renewal of such licence, the Minister-

(a) shall, if the holderof such licence has complied with the terms and conditions of his licence,grant him the renewal of such licence; or

(b) may, if the holder ofsuch licence has not so complied and the Minister is satisfied that specialcircumstances exist that justify the renewal of the licence, grant him therenewal of the licence; or

ifthe Minister is not so satisfied, refuse to grant the renewal of the licence:
Provided that the Minister shall not refuse to grant the renewal of a pipelinelicence unless he has first complied with the provisions of sub-section (3) ofsection 38.

Variation of pipeline licence

43. (1) The holder of a pipeline licence may at anytime on payment of the prescribed fee, apply to the Minister in the prescribedform for a variation of the licence.
(2) An application for the variation of a pipeline licence shall be lodged withthe Director and-

(a) shall be accompaniedby particulars of the proposed variation;

(b) shall specify thereasons for the proposed variation;

(c) shall, if the proposedvariation is in respect of the route followed by the pipeline, be accompaniedby a plan drawn to an approved scale-

(i)showing all variations proposed to be made to the route followed by thepipeline; and

(ii)specifying particulars of all lands proposed to be effected by such variation;

(d) shall, if the proposedvariation is in respect of the route followed by the pipeline, be accompaniedby particulars of all agreements entered into or proposed to be entered into bythe applicant under the provisions of section 45 or 46 with theowners or occupiers of any onshore lands proposed to be affected by suchvariation;

(e) shall be accompaniedby copies of all notices served in accordance with the provisions of subsection(4);

(f) may set out any othermatters that the applicant wishes to be considered by the Minister.

(3)The Minister may at any time by notice in writing served on the applicant,require him to furnish to the Minister, within the time specified in the noticesuch further information relating to the application as may be required by theMinister.
(4) Before lodging his application for variation of a pipeline licence theholder of such licence shall, if the proposed variation relates to the routefollowed by the pipeline, serve notice in writing on each owner and eachoccupier, if any, of any land proposed to be affected by such variation.
(5) If the Minister is of the opinion that for any reason the route proposed tobe followed by a pipeline as the result of any proposed variation in a pipelinelicence is inappropriate, he may by notice served on the applicant require theapplicant-

(a) to amend the planlodged under the provisions of paragraph (c)of subsection (2) to follow such other route as may be reasonable and convenientfor all persons who may be affected by the variation in the route followed bythe pipeline;

(b) to serve notice inwriting of such amendments on the owners and occupiers of all lands proposed tobe affected by such amendments; and

(c) to deliver copies ofall such notices to the Director within such time as may be specified by theMinister.
(6) After considering any representations made to him in relation to anapplication for the variation of a pipeline licence and in particular to thematters referred in subsection (7), the Minister may, at any time after aperiod of thirty days has elapsed since the date on which the last of thenotices required to be served under the provisions of subsection (4) or (5)have been served-

(a) vary the pipeline licenceto such extent as he considers necessary; or

(b) refuse to vary thelicence.

(7)If the Minister is of the opinion that it is necessary in the public interesthe may by notice served on the holder of a pipeline licence direct such holderto make such changes in the design, construction, route or position of anypipeline or of any pumping station, tank station or valve station to which thatlicence relates and as are specified in such notice.
(8) Where the Minister gives any direction under the provisions of subsection(7) and the person to whom the direction was given has complied with thedirection he may bring an action in the Supreme Court against the Crown and theSupreme Court shall hear the action and shall determine whether it is just thatthe whole or any portion of the reasonable cost incurred by such holder incomplying with the direction ought to be paid by the Crown and if the SupremeCourt determines that such a payment ought to be made it shall determine theamount of the payment and give judgment accordingly.

Direction as to the conveyance of petroleum in apipeline

44.(1) If -

(a) any person, by noticein writing served on the holder of a pipeline licence, requests such holder toenter into an agreement for the conveyance of petroleum through any pipelineconstructed under the authority of that licence; and

(b) that person and the holderof that licence do not, within a period of three months after the date ofservice of such notice, enter into such an agreement,

thatperson may apply to the Minister in the prescribed form for a direction underthe provisions of this section.
(2) Any application under the provisions of this section shall be lodged withthe Director and shall-

(a) be in writing in theprescribed form addressed to the Minister;

(b) be accompanied by theprescribed fee; and

(c) set out the mattersthat the applicant wishes the Minister to consider in relation to the application.

(3)Upon receipt of an application under the provisions of subsection (2), theDirector shall-

(a) serve notice of theapplication on the holder of the pipeline licence and on such other persons, ifany, as the Minister may direct; and

(b) specify in such noticea date on or before which the licence holder or any other person on whom thenotice is served may submit to him in writing any matter that he wishes theMinister to consider in connection with the application.

(4)After considering any matter submitted to him under the provisions ofsubsection (3) and such other matters as he considers relevant, the Minister,by notice in writing served on the applicant, the licence holder and any otherperson lawfully entitled to use that pipeline-

(a) may give suchdirection as he considers appropriate for or in relation to the use of thepipeline by the applicant, the licence holder and any other such person; or

(b) may refuse theapplication.

(5)Without limiting the generality of the provisions of subsection (4), adirection given under the provisions of paragraph (a) thereof may include directions as to the amounts to be paidto the licence holder by the applicant and by any other person lawfully entitledto use the pipeline but any such direction shall be subject to the right of thelicence holder to convey his own petroleum through the pipeline in priority toany other petroleum to be so conveyed.

 

PART V-DAMAGE AND COMPENSATION

Compensation payable for damage to land

45.(1) It shall be an implied condition of everylicence or permit granted by the Minister under the provisions of thisAct that the holder thereof shall pay compensation tothe person entitled thereto for all damage done to the surface of any onshoreland and to any improvements thereon by any operation conducted on such land bythe holder of such licence or permit under the authority of any of theprovisions of this Act:
Provided that in determining the amount of any such compensation no allowanceshall be made for any petroleum or other minerals known or supposed to be on orunder any land.
(2) The amount of compensation payable under the provisions of this sectionshall be as mutually agreed between the holder of the licence or permit and theperson entitled to such compensation.
(3) Compensation payable under the provisions of this section for damage doneshall be payable at the time when such damage occurs.
(4) When land is restored in accordance with the provisions of thisAct, no compensation shall be payable in respect ofany damage to the surface of the land so restored.
(5) When surface rent is payable pursuant to the provisions of section 46in respect of any land the subject of a licence, no compensation shall bepayable under the provisions of this section for any damage done to any improvementseffected to such land after the date on which surface rent began to be payable.
(6) Any person who has received compensation under the provisions of thissection for damage done to any improvements on any land the subject of alicence or permit shall not be entitled to claim any further compensation inrespect of the same damage but shall be entitled from time to time to receivesuch further compensation as the Director may determine for any further damagedone to any improvements on such land by the operations of the holder of suchlicence or permit.

Surface rent payable for disturbance of surfacerights

46. (1) It shall be an implied condition of everylicence granted under the provisions of this Act that the holder thereof shall pay surface rent tothe person entitled for the surface rights of any onshore land the subject ofsuch licence as compensation for any disturbance of any such rights by anyoperation on such land by the holder of such licence under the authority of anyof the provisions of this Act:
Provided that in respect of a production licence, surface rent shall be payableonly in respect of that portion of the surface of such land which the holder ofsuch licence is actually using and occupying.
(2) The amount of surface rent payable shall be mutually agreed in writingbetween the holder of the licence and the person entitled to the surface rightsof the land the subject of such licence and every such agreement or a certifiedcopy thereof shall be deposited in the office of the Director on payment of theprescribed fee.
(3) Surface rent shall be paid to the person entitled therefor half-yearly inadvance in each January and July and evidence of such payment shall bepresented to the Director within fourteen days of such payment:
Provided that before commencing operations on any land the subject of his licencethe holder of every licence in respect of which surface rent is payable shallpay surface rent on a pro rata basis up to the end of the next ensuinghalf year.

 

PART VI-REGISTRATION OF INSTRUMENTS

Register of Exploration Licences

47. (1) Every exploration licence shall be recorded ina register to be kept by the Director called the "Register of ExplorationLicences".
(2) The full particulars of every exploration licence shall be entered in theRegister of Exploration Licences, which particulars shall include-

(a) the number of theexploration licence;

(b) the name (if any) ofthe licensed area;

(c) a full description ofthe licensed area as set out in the licence;

(d) the date on which itwas issued and the date of its expiry;

(e) the name of everyholder;

(f) the shares held byeach holder;

(g) all transfers,assignments, agreements and other dealings approved by the Minister inconnection with such licence.

Registers of Production Licences and PipelineLicences

48. (1) Every production licence and pipeline licenceshall be recorded in registers to be kept by the Registrar of Titles called the"Register of Production Licences" and the "Register of PipelineLicences”.
(2) On registration, every production licence and pipeline licence shall besubject to the provisions of any Act for the time being in force relating to theregistration of title to land in so far as such provisions are not inconsistentwith the provisions of this Act, in the same manner as if such licence was amining lease granted under the provisions of the Mining Act and the provisions of subsections (2), (3) and (4)of section 45 of the MiningAct shall mutatis mutandis apply to every suchlicence.
(Cap. 146.)

Records of Production Licences and Pipeline Licences

49. The full particulars of every production licenceand every pipeline licence shall be recorded in books to be kept by theDirector and called the "Record of Production Licences" and the"Record of Pipeline Licences" respectively which particulars shallinclude-

(a) the number of thelicence;

(b) the name (if any) ofthe licensed area;

(c) a full description ofthe licensed area as set out in the licence;

(d) the date on which thelicence was issued and the date of its expiry;

(e) the name of everyholder;

(f) the shares held byeach holder;

(g) all transfers,assignments, agreements and other dealings approved by the Minister in relationto the licence.

Minister's consent required to deal in licence

50.(1) The holder of any licence or of any interesttherein shall not transfer or otherwise deal in his right or interest therein,or any part or share thereof, in any manner whatsoever without first obtainingthe approval in writing of the Minister and no evidence of any such dealing shallbe admissible in any court unless such prior approval has been obtained.
(1A) An application for approval under subsection (1) shall be accompanied bythe prescribed fee.

(Inserted by Act 17 of 1985.)

(2)Every dealing in a licence or any interest thereon shall be in writing andshall state the full and true consideration passing between the partiesthereto, otherwise the dealing shall be null and void.
(3) (a) Every dealing in alicence shall be presented to the Director for the endorsement of the approvalof the Minister, together with a duplicate or certified copy thereof whichshall be retained by the Director, and until so endorsed each such dealingshall be null and void, and no dealing shall be so endorsed unless it isstamped to the satisfaction of the Commissioner of Stamp Duties under theprovisions of the Stamp Duties Act.
(Cap. 205.)

(b) Every such dealingshall be presented for endorsement within twenty-one days from the date thereofand if such dealing is registrable shall be presented for registration withintwenty-one days from the date of endorsement by the Minister:

Providedthat the Minister may in his discretion, on reasonable cause being shown,extend the time for endorsement or registration.

(Amended by Act 12 of 1979, s. 4.)

Minister may require information as to proposeddealings

51. The Minister may require any person presenting adealing for approval under the provisions of section 50 to furnish him in writing with such information concerning thetransaction as the Minister considers necessary or advisable.

Entries in register on devolution of title

52. A person upon whom the rights of any holder of alicence have devolved by operation of law may apply in writing to the Directoror the Registrar of Titles, as may be appropriate, to be registered as theholder of such licence and the Director or Registrar of Titles, as the case maybe, shall if he is satisfied that the rights of the holder of such licence haveso devolved shall register the applicant as the holder of such licence.

Production and inspection of documents

53. The Minister or the Director may require anyperson to produce to him or to make available for inspection by him anydocuments in the possession or control of that person and relating to anydealing presented to the Director for endorsement under the provisions ofsection 50.

(Amended by Act 12 of 1979, s. 5.)

Inspection of Registers and Records

54. The Registers of Exploration Licences, ProductionLicences and Pipeline Licences and the Records of Production Licences andPipeline Licences and all dealings recorded therein shall upon payment of theprescribed fee be open to inspection by any person during such hours and onsuch days as the office of the Director is open for public business.

Proof of documents

55. Subject to the provisions of the Stamp Duties Act,in all proceedings in any court the production of any document purporting to beissued by the (Minister, the Director or any inspector under the provisions ofthis Act shall, until the contrary is proved, be sufficient evidence that thedocument is what it purports to be and that it was lawfully issued.
(Cap. 205.)

Issue of certified and duplicate copies ofdocuments
56.
(1) The Director may subject to payment of the prescribed fee issuea certified copy of any exploration licence or other document filed with himland such certified copy shall be received in evidence in any court.
(2) Upon the application of the holder thereof the Minister may, subject topayment of the prescribed fee and to such conditions as to proof of loss ordestruction as he thinks fit issue a duplicate of any exploration licence whichhe is satisfied has been lost or destroyed, and such duplicate shall beavailable for all purposes and uses and have the same force and effect as thelost or destroyed licence:
Provided that the Minister shall not issue such duplicate unless the applicanttherefor has given not less than fourteen days' notice in the Gazette and inany newspaper published and circulating in Fiji of his intention to make suchapplication.

 

PART VII-GENERAL

Forms of licences

57. Licences granted under the provisions of this Actshall be in accordance) with such forms as may be approved by the Minister.

Notice of grants of licences to be published

58. The Minister shall cause such particulars as hethinks fit of-

(a) an application for alicence;

(b) the grant or renewalof a licence;

(c) the variation of alicence;

(d) the surrender orcancellation of a licence as to all or any part of the licensed area;

(e) the expiry of alicence,

tobe published in the Gazette and in a newspaper published and circulating inFiji.

Date of effect of licence, etc.

59.(1) A licence shall have effect from and includingthe date specified for that purpose on the licence or if no date is sospecified from the date of issue of the licence.
(2) The surrender or cancellation of a licence as to the whole or any part ofthe licensed area shall have effect from and including the date specified forthat purpose in the notice of surrender or cancellation or if no date is sospecified on the day on which the notice is published in the Gazette.
(3) A variation of a licence shall have effect from and including the datespecified for that purpose in the notice of variation or if no date is sospecified from the day on which such notice is published in the Gazette.

Commencement of works

60. Where a licence is granted subject to anycondition that any works or operations specified in the licence are to becarried out, the holder of the licence shall commence to carry out those worksor operations within such time period as may be specified in the licence or, ifno period is so specified, within a period of six months after the day on whichthe licence has effect:
Provided that the Minister may, if he thinks fit, by notice in writing servedon the licence holder extend the period within which any such works oroperations are to be commenced or completed for such period as he thinks fitand specifies in such notice.

Exploration licence deemed to continue in forceuntil renewal granted or refused

61. Where an application is made for the renewal ofany licence in accordance with any of the provisions of this Act and thelicence expires before the Minister grants or refuses to grant the renewal ofsuch licence, the licence shall be deemed to continue in force in all respectsuntil such time as the Minister grants or refuses to grant the renewal of thelicence.

Work practices

62.(1) Every holder of an exploration licence orproduction licence shall carry out all petroleum exploration operations andoperations for the recovery of petroleum in the licensed area in a proper andworkmanlike manned and in accordance with good oil-field practice and shallsecure the safety, health and welfare of persons engaged in those operations inor about the licensed area, and in particular, without limiting the generalityof the foregoing, shall-

(a) take all steps practicable to-

(i)control the flow, and prevent the waste or escape in the licensed area, ofpetroleum or water;

(ii)prevent the escape in the licensed area of any mixture of water or drillingfluid with petroleum or any other matter;

(iii)prevent damage to any petroleum bearing strata in any area outside the licensedarea;

(iv)keep separate each petroleum pool discovered in the licensed area;

(v)keep separate such of the sources of water, if any, discovered in the licensedarea as the Minister, by notice in writing served on such holder, directs;

(vi)prevent the entrance of water or any other matter through wells to petroleumbearing strata or petroleum pools except when required by, and in accordance with,good oil-field practice;

(vii)prevent the pollution of any water-well, spring, stream, river, lake, estuary,harbour, the high or territorial seas and shoreline by oil or any drillingfluid or substance which might contaminate the water or shore line or whichmight cause harm or destruction to marine life;

(viii)confine all petroleum obtained from the licensed area in tanks, gas holders,pipes, pipelines or other receptacles constructed for that purpose;

(b) drain all waste oil, salt water and refuse fromtanks, gas holders and wells into proper receptacles constructed and maintainedRIT that purpose at a safe distance from all such tanks, gas holders and wellsand from all other structures whether situated in the licensed area or not anddispose of such waste oil, salt water and refuse in such manner as the Ministermay from time to time direct.

 (2) Every holder of a pipeline licence shalloperate the pipeline in all proper and workmanlike manner and shall secure thesafety, health and welfare of persons employed in or about the licensed areaand in particular without limiting the generality of the foregoing shall takeall steps practicable to prevent the waste or escape of petroleum or water fromany pipeline or from any secondary line, pumping station, tank station, valvestation or water line.

Maintenance, etc., of property

63. Every holder of an exploration licence, productionlicence or pipeline licence shall maintain in good condition and repair allstructures, equipment and other property brought into the licensed area by himor with his authority and shall further remove from the licensed area all suchstructures, equipment and other property, that are not either being used or tobe used in connection with the operations in which he is engaged under theauthority of such licence.

Sections 62and 63 to have effect subject toother provisions of this Act

64. The provisions of sections 62 and 63 shallhave effect subject to-

(a) any other provisionsof this Act;

(b) any regulations madeunder the provisions of this Act;

(c) any directions givenunder the authority of this Act.

Drilling near boundaries

65.(1) No well may be drilled under the authority ofany licence-

(a) so as to deviate atany point outside such licensed area; or

(b) except with theconsent in writing of the Minister and subject to such conditions as may be specifiedby him in such consent, so that any part of such well is less than 300 metresfrom the boundary of the licensed area in which it is drilled.

(2)If any licence holder fails to comply with any of the provisions of subsection(1) or with any conditions imposed thereunder the Director may by notice inwriting served on the licence holder direct him to do one or more of thefollowing within such period as may be specified in such notice-

(a) to plug the well;

(b) to close off the well;and

(c) to comply with suchdirections relating to the drilling or maintenance of the well as may bespecified in such notice.

Minister may give directions
66.
(1) The Minister may, by notice in writing served on the holder ofany licence, give to such holder directions as to any matter with respect towhich regulations may be made under the provisions of this Act.
(2) Any directions given under the provisions of subsection (1) shall haveeffect and shall be complied with notwithstanding anything contained in anyregulations made under the provisions of this Act and to the extent that anysuch regulations are inconsistent with such directions, the person to whom thedirections are given shall be exempt from compliance with such regulations.
(3) If any person to whom a direction is given under the provisions of this Actfails to comply with such direction, the Minister may, notwithstanding thatsuch person has been convicted of any offence under the provisions of this Actin respect of such failure, do or cause to be done all or any of the thingsrequired by the direction to be done and all costs and expense incurred by theMinister in relation thereto shall be a debt due by the person to whom thedirection was given to the Crown and recoverable in a court of competentjurisdiction.

Surrender of licence

67. (1) The holder of any licence may, at any time, onpayment of the prescribed fee, surrender-

(a) in the case of anexploration licence or production licence, all or any of the blocks includedwithin the licensed area; or

(b) in the case of apipeline licence, the whole or any part of the area the subject of suchlicence:

Providedthat-

(i)he has given not less than three months' notice in writing to the Minister ofsuch surrender;

(ii)he has carried out up to the surrender date, pro rata if appropriate,all work and expenditure conditions imposed upon him by or under the provisionsof this Act;

(iii)he has paid all fees and other amounts payable by him in respect of suchlicence under the provisions of this Act or has made arrangements to thesatisfaction of the Minister for the payment of all such fees and amounts;

(iv)he has complied with all other conditions to which the licence is subject andwith the provisions of this Act and all regulations and directions made orgiven thereunder;

(v)he has to the satisfaction of the Minister removed or caused to be removed fromthe area to which the surrender relates all property brought into that area byany person engaged or concerned in the operations authorised by such licence orhas made arrangements to the satisfaction of the Minister with respect to allsuch property;

(vi)he has to the satisfaction of the Minister plugged or closed off all wellsdrilled in that area by any person engaged or concerned in the operationsauthorised by such licence;

(vii)he has made provision to the satisfaction of the Minister for the conservationand protection of the natural resources in that area; and

(viii)he has to the satisfaction of the Minister made good all damage to the surfaceof any land or the seabed or subsoil of the seabed in that area caused by anyperson engaged or concerned in the operations authorised by such licence.

(2)Notwithstanding the provisions of subsection (1), the Minister may waivecompliance with any of the conditions thereby imposed if he is satisfied thatspecial circumstances warrant that justify such waiver.

Cancellation of licence

68. (1) If the holder of any licence-

(a) has failed to complywith any of the provisions of this Act or of any regulations or directions madeor given thereunder;

(b) has failed to complywith any condition to which such licence is subject; or

(c) fails to pay anyamount payable by him under the provisions of this Act within a period of threemonths after the day on which such amount becomes payable, the Minister may onthat ground by notice in writing served on such holder-

(i)in the case of an exploration licence or production licence, cancel suchlicence as to all or any of the blocks the subject of such licence; or

(ii)in the case of a pipeline licence, cancel such licence as to the whole or anypart of the area the subject of such licence.

(2)The Minister shall not, under the provisions of subsection (1), cancel anylicence either wholly or in part on any of the grounds specified in thatsubsection unless he has-

(a) by notice in writingserved on the licence holder, given not less than one month's notice of hisintention to cancel such licence;

(b) served a copy of suchnotice on such other persons, if any, as he considers will be adverselyaffected by such cancellation;

(c) in such notice-

(i)given particulars of the grounds for such intention;

(ii)specified a date, being not less than one month after the date of service ofsuch notice on the holder of such licence, on or before which such holder orany other person upon whom copy of the notice is served, may submit writtenrepresentations on any matters that he wishes the Minister to consider; and

(d) taken into account-

(i)all actions by the licence holder to remedy such failure and to prevent anyrecurrence of it; and

(ii)all matters submitted to him for his consideration under the provisions ofparagraph (c).

Cancellation not affected by other provisions

69. (1) A licence may be wholly or partly cancelled onany of the ground specified in paragraph (a)or (b) of subsection (1) ofsection 68 notwithstanding thatany person has been convicted of an offence by reason of any such failure.
(2) A licence may be wholly or partly cancelled on the grounds specified inparagraph (c) of subsection (1)of section 68 notwithstandingthat judgment for the amount has been obtained or that the amount or any partof it has been paid or recovered.

Removal of property by licence holder

70.(1) Upon the expiration, prior surrender orcancellation of any licence as to the whole or any part of the area the subjectof such licence the Minister may, by notice in writing served on the person whois or was the holder of such licence direct such person to do all or any or thefollowing things:-

(a) to remove or cause tobe removed from the area to which such expiration, surrender or cancellationrelates all property brought into that area by any person engaged or concernedin the operations authorised by such licence or to make arrangementssatisfactory to the Minister with respect to that property;

(b) to plug or close off,to the satisfaction of the Minister, all wells made in that area by any personengaged or concerned in those operations;

(c) to make provision tothe satisfaction of the Minister for the conservation and protection of thenatural resources in that area; and

(d) to make good to thesatisfaction of the Minister any damage to the surface of any land or to theseabed or subsoil in that area caused by any person engaged or concerned inthose operations,

withinsuch period as may be specified in such notice.
(2) If any direction given under the provisions of subsection (1) is notcomplied with or any arrangement made under the provisions of that subsectionhas not been carried out-

(a) the Minister may do orcause to be done all or any of the things required by the direction orarrangement to be done; and

(b) if any propertybrought into the area concerned, by any person engaged or concerned in theoperations authorised by the licence has not been removed in accordance withsuch direction or arrangement, the Minister may by notice in the Gazette directthat the owner or owners of that property shall remove it from that area ordispose of it to the satisfaction of the Minister, within the period specifiedin such notice and shall serve a copy of such notice on such person whom hebelieves to be an owner of that property or any part of that property.

(3)Where any direction given under the provisions of either of subsections (1) or(2) has not been complied with the Minister may do all or any of the followingthings:-

(a) remove in such manneras he thinks fit, all or any of that properly from that area concerned; and

(b) dispose of, in suchmanner as he thinks fit, all or any of that property.

Royalty

71. (1) The holder of an exploration licence shall beliable to pay to the Director royalty on all petroleum recovered from thelicensed area at the rate of 10 per cent of the well-head value of suchpetroleum.
(2) The holder of a production licence shall be liable to pay to the Directorroyalty on all petroleum recovered from the licensed area-

(a) if the number of blocksincluded in the licensed area does not exceed the primary entitlement determinedin accordance with the provisions of subsection (2) of section 25 at the rate of 10 per cent of thewell-head value of such petroleum;

(b) if the number of blocksincluded in the licensed area exceed such primary entitlement, at the rate of10 per cent of such well-head value together with an additional 0.5 per cent ofsuch well-head value for each block in excess of such primary entitlementincluded in the licensed area so that however the maximum number of blocksincluded in the licensed area in excess of such primary entitlement does notexceed five and the maximum rate of royalty payable by the holder of suchlicence does not exceed 12.5 per cent of the well-head value of all petroleumrecovered from the licensed area.

(3)For the purposes of subsections (1) and (2) royalty shall not be payable inrespect of any petroleum that-

(a) the Minister issatisfied was unavoidably lost before the quantity of petroleum wasascertained;

(b) is used by the holderof the production licence, with the approval of the Minister for the purpose ofpetroleum exploration operations, or operations for the recovery of petroleum;

(c) with the approval ofthe Minister is flared or vented in connection with operations for the recoveryof petroleum; or

(d) is with the approval ofthe Minister, returned to a natural reservoir.

(4)Unless otherwise agreed between the holder of the licence and the Minister allroyalties payable under the provisions of this section shall be payable on orbefore the last day of each month in respect of all petroleum recovered duringthe month preceding that month.

 

PART VIII-RECORDS AND ACCOUNTS

Discovery and use of water

72. Where potable water is discovered in a licensedarea the licence holder shall within a period of one month after the date ofthe discovery, furnish to the Director, in writing, particulars of thediscovery.

Survey of wells, etc.

73. (1) The Minister may at any time, by direction inwriting, served on the holder of any licence, direct such holder-

(a) to carry out a surveyof the position of any well, pipeline, water line, pumping station, tankstation, valve station, secondary line, structure or equipment specified insuch notice; and

(b) to furnish him with areport in writing of such survey.

(2)If the Minister is not satisfied with any survey or any report carried out o rfurnished under the provisions of subsection (1), he may by further directionin writing, served on such holder, direct him to carry out such further surveyor to furnish such further information in connection with such surveys as mayspecified in such further direction.

Records to be kept

74.(1) Every holder of an exploration licence orproduction licence shall keep, in such form as may be approved by the Minister,full and accurate record containing the following particulars:-

(a) the drilling,deepening, plugging or abandonment of all boreholes and wells;

(b) the strata and subsoilthrough which all boreholes and wells are drilled;

(c) the casing inserted inall boreholes and wells and any alterations to such casing;

(d) any petroleum, waterand other economic minerals encountered;

(e)the areas in which any geological or geophysical work has been carried out;

(f) such other matters asthe Minister or the Director may from time to time require.

(2)Every holder of an exploration licence or a production licence shall keepaccurate geological maps and plans and geophysical records and interpretationsrelating to the licensed area the subject of such licence and also allgeological and geophysical reports made by or for such holder.
(3) The holder of the licence shall keep all the records, maps, plans andinterpretations referred to in subsections (1) and (2) and shall permit theDirector, any inspector or any of their authorised representatives to makeinspection thereof and, when so required by the Director by direction inwriting, served on such holder, shall deliver copies thereof to him.

Records to be supplied

75. Every holder of an exploration licence or aproduction licence shall supply to the Director-

(a) within one month afterthe end of each quarter-year period-

(i)a summary of all geological and geophysical work carried out;

(ii)a list of maps, reports and other geological and geophysical data prepared byor for such holder;

(iii)notification of future exploration plans;

(b) after the grant of aproduction licence, within two months after 1 January and 1 July in each year,estimates of crude oil and natural gas production and exports for each of thefour half-year periods immediately following the said date;

(c) after the grant of aproduction licence, within four months after the end of each calendar year-

(i)estimates of economically recoverable reserves of crude oil and natural gas atthe end of that year;

(ii)a record, in a form approved by the Director, describing the results of allexploration, development and other works carried out during that year by suchholder in connection with searching for, boring for and obtaining petroleum;

(d) within six months ofcompletion of drilling, summaries of exploration wells including lithologicalgroups, letter classification boundaries and hydrocarbon zones:

Providedthat such information as cannot reasonably be obtained within such period ofsix months shall be supplied as soon as it becomes available;

(e) from time to time,such other plans and information as to the progress and results of such holder'soperations as the Director ay by direction in writing, served on such holder,require;

(f) on relinquishment ofany part of any licensed area, such maps, plans, reports, records,interpretation, data and drill cores, made or obtained by or for such holderrelating to exploration, development, production and any operation in therelinquished area as the Director may by direction in writing, served on suchholder, require.

Records, etc., to be confidential

76. All maps, plans, reports, records, interpretationsand data which the holder of a licence is or may be required to give or supplyor to permit inspection under the provisions of this Act shall be given orsupplied at the expense of such holder and shall be treated as confidential atall times whilst such licence remains in force:
Provided that the Minister, the Director or any officer of the Government dulyauthorised by the Minister in that behalf shall be entitled-

(a) at any time, to makeuse of any information received from such holder for the purpose of preparingand publishing aggregated returns and general reports on the extent ofpetroleum exploration and exploitation operations;

(b) at any time to makeuse of topographical survey information including submarine topography, for anypurpose whatsoever;

(c) at any time, to makeuse of any information received from such holder for the purpose of anyarbitration or litigation in relation to the area the subject of such licence;

(d) at any time, to make useof information regarding economic minerals other than petroleum;

(e) to publish summariesof exploration wells, including lithological groups, letter classificationboundaries and hydrocarbon zones-

(i)in the case of discovery wells, not less than two years after completion ofdrilling;

(ii)in other cases at any time.

Samples of water, petroleum and strata

77. (1) Every holder of an exploration licence or aproduction licence shall so far as reasonably practicable collect, label andpreserve for reference for a period of one calendar year characteristic samplesof the water encountered in any borehole or well and samples of any petroleumfound in any licensed area and, for a period of two calendar years,characteristic samples of the strata found in any borehole or well and beforedisposing of any such samples shall give the Director not less than threemonths' notice in writing of the intention to dispose thereof.
(2) The Director, any inspector or any person authorised by them shall be givenaccess to any sample referred to in subsection (1) and shall be entitled torequire that representative specimens of any such samples be delivered to themand may retain any specimens so delivered.

Accounts to be kept by licence holders

78. (1) Every holder of an exploration licence or aproduction licence under the provisions of this Act shall at all times duringthe continuance of such licence keep full and correct accounts in a form fromtime to time approved by the Minister, which accounts shall contain accurateentries of-

(a) the gross quantity of-

(i)crude oil obtained from the licensed area;

(ii)untreated natural gas obtained from the licensed area and separated andintroduced into main gas pipeline networks;

(b) the method and resultsof tests made on the crude oil and natural gas;

(c) the quantity sold of-

(i)crude oil;

(ii)natural gas;

(iii)casinghead petroleum spirit;

(iv)each refined petroleum product, including liquefied petroleum gases,

togetherwith the names of the purchasers, the quantity purchased and the price paid byeach purchaser;

(d) the quantity injectedinto the formation of-

(i)crude oil;

(ii)natural gas;

(iii)casinghead petroleum spirit;

(iv)each refined petroleum product, including liquefied petroleum gases;

(v)water and other liquid or gases;

(e) the quantity consumedfor drilling and other production operations (other than quantities reportedunder paragraph (d)) andconsumed in pumping to field storage and refineries in Fiji of-

(i)crude oil;

(ii)natural gas;

(iii)casinghead petroleum spirit;

(iv)each refined petroleum product, including liquefied petroleum gases;

(f) the quantity of crudeoil refined by him in Fiji and the quantity of each refined product, includingliquefied petroleum gases, obtained from it;

(g) the quantity ofnatural gas treated by him in Fiji for the removal of casinghead petroleumspirit or other liquids and liquefied petroleum gases and the quantity of-

(i)casinghead petroleum spirit;

(ii)butane;

(iii)propane;

(iv)other liquids or gases obtained from it;

(h) the quantity ofnatural gas flared;

(i) such furtherinformation as the Director may by direction, in writing, served on suchholder, from time to time require.

(2)Within two calendar months after 1 January and 1 July in each year each holderof a licence under the provisions of this Act shall deliver to the Director, ina form from time to time approved by the Minister, a summary of the accountsreferred to in subsection (1) for each half-year period together with astatement of all royalties payable in respect of each such period.

Audit

79. The Minister may from time to time appoint anauditor, who shall not be a public officer, to audit, for the purposes ofGovernment revenues and the provisions of this Act but not otherwise, the booksand accounts of any holder of a licence and such holder shall produce to suchauditor all such book, records, accounts and other documents and furnish allsuch information as the auditor may require for the purpose.

 

PART IX-ENTRY ONTO LANDS

Authority of Minister, etc., to enter land

80. (1) The Minister, the Director or any personauthorised by the Director that purpose shall at all times have the right-

(a) to enter into and uponany licensed area and the seas over any part thereof in order to search for,dig for and take therefrom any substances, other than petroleum, therein or forall and every other purpose other than those the subject of the provisions ofthis Act;

(b) to sink, build and usesuch pits, shafts, wells, levels, drains, water courses, tunnels, buildings,engines, machinery and other things whatsoever on, in or under such licensedarea as the Minister considers necessary or desirable for the purposesspecified in paragraph (a); and

(c) to grant such rights,permits or licences over any licensed area as may be reasonably required byother persons for the purpose may be if laying, operating and maintainingpipes, cables, telephone and power lines and inter-communications:

Providedthat such rights shall be exercised in such manner as does not unreasonablyinterfere with the rights of the holder of the licence.
(2) The Minister, the Director, any inspector or any other officer of theGovernment duly authorised in that behalf shall have the right-

(a) to enter onto and uponany licensed area in order to construct and maintain on the licensed area suchreservoirs, pumping stations, generating stations, radio transmitting andreceiving apparatus, waterways, roads, railways, telegraph and telephone lines,pipelines or other things whatsoever as in the opinion of the Minister, theDirector or such other officer of the Government are necessary or desirable forany purpose;

(b) to obtain from and outof any licensed area such stone, earth and other minerals as may be necessaryor required for the construction and maintenance of any thing authorised to beconstructed and maintained under the provisions of paragraph (a);

(c) at all times to drawwater from any licensed area;

(d) to go to and fro atall times on through any licensed area for all such purposes as may berequired:

Providedalways that such rights shall be exercised in such manner as does notunnecessarily interfere with the rights of the holder of the licence.

Authority of holder to enter land

81. The right on the part of the holder of any licenceto enter and occupy any licensed area shall not include the right to enter oruse any land-

(a) within any Fijianvillage;

(b) used as a place ofburial or set apart for any public purpose;

(c) within thirty metresof an inhabited house or building except with the consent in writing of theowner or occupier thereof;

(d) under crop or ploughed or otherwise cultivated andrendered fit for planting and habitually used for the planting of crops, exceptwith the consent of the owner or occupier thereof;

(e) within the boundaries of any city or town, exceptwith the consent of the owner of the surface rights;

(f) reserved for thepurpose of any railway or public road or within fifteen metres of any suchrailway or public road, except with the consent of the owner thereof or, as thecase may be, the Permanent Secretary for Works;

(g) any land within sixtymetres of any spring in use as a source of water supply or any area notified asa catchment area for water supply purposes or any artificial reservoir, waterworks or water supply buildings except with the consent of the Commissioner forWater Supply;

(h) any reserved forestdeclared as such under the provisions of the Forest Act except with the consentof, and in accordance with such conditions as may be imposed by, the Minister.
(Cap. 150.)

 

PART X-RESTRICTIONS

Restriction on rights

82.(1) No rights granted under the provisions of thisAct shall be exercised in such a way as to cause damage to any land notoccupied by the holder of a licence under the provisions of this Act.
(2) Rights granted under the provisions of this Act may be exercised on theforeshore between mean high water mark and mean low water mark only when it isnecessary to carry out effectually any operation authorised by any licencegranted under the provisions of this Act and then only in such a way as not tocause any reasonably avoidable obstruction to the use of such foreshore forother purposes.
(3) Nothing in this Act shall confer any rights on the holder of a licenceunder the provisions of this Act over the sea over any licensed area other thansuch rights as may be necessary for the carrying out of any operationsauthorised by this Act and the obtaining of petroleum from the licensed area ina proper, efficient and safe manner.

Interference with other rights

83. Every person carrying on any operations in adesignated area under the authority of any licence shall carry on thoseoperations in such a manner as not to interfere with-

(a) navigation;

(b) fishing;

(c) the conservation of thenatural resources of the sea or seabed; or

(d) any operations ofanother person lawfully carried on by way of exploration for, recovery of or conveyanceof any mineral whether petroleum or not, or by way of construction or operationof a pipeline,

toa greater extent than is necessary for the reasonable exercise of the rightsand performance of the duties of that first-mentioned person.

 

PART XI-LOCAL REFINING

Minister may require crude oil to be delivered toFiji refinery

84. The holder of a licence under the provisions ofthis Act shall, if so required by the Minister by notice in writing, withinthree months from the date of service of such notice on such holder or suchfurther time as the Minister may allow, supply to refineries in Fiji for localrefining as much of his production of petroleum from all licences granted tohim under the provisions of this Act as may be required by such refineries to amaximum of such proportion of the total demand for petroleum for refining inFiji as the holder's production of petroleum in Fiji bears to the totalproduction of petroleum in Fiji, such petroleum to be supplied at such pricehas may be mutually agreed upon between the holder and the operator of eachrefinery or in default of such agreement as may be reasonably determined by theMinister to be that at which such holder could otherwise sell such petroleum.

 

PART XII-MISCELLANEOUS

Statements as to opinions of Government officialsprohibited

85. No statement shall be made by or with the consentof the holder of any licence claiming or suggesting whether expressly or byimplication that any Minister or any public officer or any person or bodyacting on behalf of any Minister or any Department of the Government has orhave formed or expressed any opinion that any lands within any licensed areaare from their geological formation or otherwise likely to contain petroleum.

Prospectus to be submitted to Minister

86. No prospectus shall be issued by or on behalf ofany company or of any shareholder, beneficial or of record, therein calling forpublic subscription of any equity or loan capital for any enterprise relatingto any licensed area unless and until such prospectus or such portions thereofas relate to such enterprise or such licensed area has been submitted to theMinister and if the Minister so requires such prospectus shall be circulated oradvertised only with such reports or comments relating to such enterprise orsuch licensed area as the Minister may approve.

Notices

87. Any notice authorised or required by this Act tobe given or served-

(a) by the Minister or bythe Director shall be deemed to have been duly given or served on the holder ofa licence under the provisions of this Act if signed by the Minister or theDirector or by any person authorised in writing by either of them in that behalfand sent by pre-paid post to such holder at his address in Fiji as specified insuch licence or in the case of a partnership at the address of its accreditedagent registered under the provisions of section 12; and

(b) by the holder of thelicence shall be deemed to have been duly given or served if signed by suchholder, if an individual, or if a partnership, by any of the partners, or, if acompany, signed by a director or the secretary of such company or by any personor persons authorised in writing by the holder or such company on his or itsbehalf and sent by pre-paid post to the Minister,and any such notice shall bedeemed to have been given or served on the day on which it would be deliveredin the ordinary course of post.

Arbitration

88. If any question or difference shall arise betweenthe holder of a licence under this Act and the Minister or Director or theirrespective representatives or any of them touching or concerning their rightsor obligations under this Act, such question or difference shall be referredfor determination in accordance with the provisions of the ArbitrationAct to a single arbitrator who shall be appointed byagreement between the parties to the question or difference and, in default ofan agreed appointment, by the Supreme Court pursuant to the provisions ofsub-section (2) of section 6 of that Act.
(Cap. 38.)

 

PART XIII-OFFENCES AND PENALTIES

Prohibition on petroleum exploration or recoveryexcept under licence

89. Any person who within a designated area-

(a) carries out anypetroleum exploration operations; or

(b) carries out anyoperations for the recovery of petroleum,

exceptunder and in pursuance of a licence granted under the provisions of thisAct, shall be guilty of an offence and liable to afine not exceeding $2,000 for each day on which the offence occurs.

Offence relating to pipelines, etc.

90. (1) Any person who, within a designated area-

(a) commences or continues the construction of,alters, re-constructs or operates a pipeline except under and in pursuance of apipeline licence granted under the provisions of this Act; or

(b) commences or continuesthe construction of, alters, re-constructs or operates, a water line, pumpingstation, tank station, valve station or secondary line except-

(i)under and in pursuance of a pipeline licence granted under the provision of thisAct; or

(ii)with the consent in writing of the Minister and in accordance with theconditions, if any, specified in the instrument of consent,

shallbe guilty of an offence and liable to a fine not exceeding $2,000 for each dayon which the offence occurs.
(2) It shall not be an offence under subsection (1)-

(a) if, in an emergency inwhich there is a likelihood of loss or injury, or, for the purpose ofmaintaining a pipeline, water line, pumping station, tank station, valvestation or secondary line in good order or repair, a person does any act toavoid the loss or injury or to maintain the pipeline, water line, pumpingstation, tank station, valve station or secondary line in good order andrepair; and

(i)as soon as practicable notifies the Director of the act alone; and

(ii)complies with any directions given to him by the Minister, the Director or anyinspector; or

(b) if a person does anact in compliance with any direction given under any of the provisions of thisAct.

(3)Where-

(a) the construction of apipeline, waterline, pumping station, tank station, valve station or secondaryline is commenced, continued or completed in contravention of any of theprovisions of this Act; or

(b) a pipeline, waterline, pumping station, tank station, valve station or secondary line is alteredor reconstructed in contravention the provisions of this Act,the Minister may, without prejudice to anyprosecution that may be instituted in relation thereto, by notice in writingserved on the appropriate person direct him-

(i)to make such alterations to the pipeline, water line, pumping station, tankstation, valve station or secondary line as are specified in such notice; or

(ii)to move pipeline, water line, pumping station, tank station, valve station orsecondary line to such other place as may be specified in such notice or toremove it from the designated area within such period as may be specified insuch notice.

(4)For the purpose of subsection (3), the appropriate person shall be-

(a) if the construction ofthe pipeline, water line, pumping station, tank station, valve station orsecondary line has been completed-the owner thereof; or

(b) if the construction ofthe pipeline, water line, pumping station, tank station, valve station orsecondary line has not been completed-the person for whom it is beingconstructed.

(5)Where a person on whom there has been served a notice under the provisions ofsubsection (3) does not within the period specified in the notice, or suchextended time, if any, as the Minister may allow, comply with the direction theMinister may cause the Director to do all or any of the things required by thedirection to be done.
(6) The costs and expenses incurred by the Director under the provisions ofsubsection (5) shall be a debt due to the Crown by the person upon whom thenotice was served and shall be recoverable in a court of competentjurisdiction.

Assaults, obstructions etc.

91. Any person who assaults or without reasonableexcuse, obstructs or hinders the Minister, the Director or any inspector in theexercise of his powers of the performance of his duties under the provisions ofthis Act, shall be guilty of an offence and shall be liableto a fine not exceeding $500 or to imprisonment for a term not exceeding twelvemonths or to both such fine and imprisonment.

Failing to give information or giving falseinformation, etc.

92. Anyperson who-

(a) wilfully refuses or fails-

(i) to give any information which is or may berequired to be given under the provisions of this Act; or

(ii) to produce any books, plans, records, accountsor other documents which are or may be required to be produced under theprovisions of this Act; or

(b) wilfully or recklessly-

(i) gives any such information; or

(ii) makes any statement; or

(iii)produces any book, plan, record, account or other document that is false ormisleading in a material particular to the Director,shall be guilty of anoffence and shall be liable to a fine not exceeding $1,000 or to imprisonmentfor a term not exceeding two years or to both such fine and imprisonment.

Refusal or failure to comply with directions

93.(1) Any person who refuses or fails to comply withthe requirements of any direction given to him by the Minister, the Director orany inspector under any of the provisions of this Act, shall be guilty of an offence and shall be liableto a fine not exceeding $1,000 or to imprisonment for a term not exceeding twoyears or to both such fine and imprisonment.
(2) It shall be a defence if a person charged with an offence under theprovisions of subsection (1) proves that he took all reasonable steps to complywith the direction.

Misrepresentation and other fraudulent practices

94.(1) Any person who falsely represents that he hasobtained the grant of a licence under the provisions of thisAct and thereby induces or attempts to induce anyother person to invest capital in any company or syndicate connected therewithbefore he has obtained the grant of such licence shall be liable to forfeit anyclaim to the grant of such licence, and, if he already holds any licence underthe provisions of this Act shall be liable to have such licence cancelled.
(2) Any person who, with intent to defraud, does any act for the purpose ofmisleading any person as to the nature, quality or quantity of petroleumnaturally occurring at any place or who, with intent to defraud, mingles orcauses to be mingled with any sample of petroleum or any substance whatsoeverwhich will increase the value or in any way change the nature of such sample,shall be guilty of an offence and shall be liable to a fine not exceeding$2,000 or to imprisonment for a term not exceeding five years or to both suchfine and imprisonment.

Obstruction of licence holder

95. Any person who wilfully interferes with orobstructs the holder of any licence, or his servants or agents in the exerciseof any right, powers or liberty conferred by or under the provisions of thisAct, shall be guilty of an offence and shall be liableto a fine not exceeding $500 or to imprisonment for a (term not exceedingtwelve months or to both such fine and imprisonment.

Failure to show true consideration for dealings

96. Any person being a party to any dealing in anylicence or any interest therein who, with intent to defraud, executes suchdealing if the dealing does not fully and truly set forth the trueconsideration therefor, shall be guilty of an offence and shall be liable to afine not exceeding $1,000 or to imprisonment for a exceeding two years or toboth such fine and imprisonment.

(Amended by 1979, s. 6.)

Failure to comply with proper work practices

97.(1) Any person being a holder of any licence whofails to comply with any of the requirements of section 62 or section 63,shall be guilty of an offence and shall be liable to a fine not exceeding$1,000 or to imprisonment for a term not exceeding two years or to both suchfine and imprisonment.
(2) It shall be a defence if a person charged with an offence under theprovisions of subsection (1) proves that he took all reasonable steps to complywith the provisions of section 62or 63.

Contravention of section 83

98. (1) Any person carrying on any operations in adesignated area on the authority of any licence who carries out any of suchoperations in contravention of the provisions of section 83, shall be guilty of an offence andshall be liable to a fine not exceeding $1,000 or to imprisonment for a termnot exceeding two years or to both such fine and imprisonment.
(2) It shall be a defence if a person charged with an offence unless theprovisions of subsection (1) proves that he was acting under the authority oand in compliance with any consent obtained under the provisions of section 7of the Continental Shelf Act.
(Cap. 149.)

General penalty

99. Any person who-

(a) disobeys any of the provisions of thisAct by-

(i)wilfully doing any act which it forbids;

(ii)refusing or omitting to do any act which it requires to be done;

(b) refuses or wilfully omits to carry out any lawfulinstruction made, given or imposed by the Minister, the Director or anyinspector under the authority of this Act,shall be guilty of an offence and shall, where nospecific penalty is provided, be liable to a fine not exceeding $500 or toimprisonment for a term not exceeding twelve months or to both such fine andimprisonment.

 

PART XIV-REGULATIONS

Regulations

100.(1) The Minister may make regulations prescribingall matters which are required or permitted to be prescribed or which arenecessary or convenient to be prescribed for carrying out or giving effect tothe provisions of this Act.
(2) In particular and without limiting the generality of subsection (1), theregulations may make provision for securing, regulating, controlling orrestricting all or any of the following matters:-

(a) prescribing the forms to be used;

(b) prescribing the fees to be paid;

(c) prescribing the amounts of all sums required to bedeposited or secured;

(d) determining the priority to be given toapplications for licences;

(e) the payment of royalties;

(f) the use of explosives;

(g) the preservation ofsafety;

(h) the prevention ofpollution and the preservation of health;

(i) the compilation ofstatistics;

(j) the regulation,restriction and control of the disposal and export of petroleum;

(k) the exploration forpetroleum and the carrying on of operations, and the execution of works, forthat purpose;

(l) the recovery ofpetroleum and the carrying on of operations, and the execution of works, forthat purpose;

(m) conserving andpreventing the waste of, the natural resources, whether petroleum or otherwise,within any designated area;

(n) the construction andoperation of pipelines, water lines, secondary lines, pumping stations, tankstations or valve stations and the carrying on of operations, and the executionof works, for any of those purposes;

(o) the construction,erection, maintenance, operation or use of installations or equipment;

(p) the control of theflow and the prevention of the escape of petroleum or water;

(q) the prevention of theescape of water or drilling fluid or a mixture of water or drilling fluid withpetroleum or any other matter;

(r) the prevention ofdamage to petroleum-bearing strata in an area, whether in a designated area ornot, in respect of which a permit or licence is not in force;

(s) the keeping separateof-

(i)each petroleum pool discovered in a licensed area; and

(ii)each source of water discovered in a licensed area;

(t) the prevention ofwater or other matter from entering a petroleum pool through wells;

(u) the prevention of thewaste or escape of petroleum or water from a pipeline, water line, secondaryline, pumping station, tank station or valve station;

(v) the maintaining ingood condition and repair of all structures, equipment and other property inany designated area used or intended to be used for or in connection withexploration for, or the exploitation of, petroleum in the designated area;

(w) the removal from adesignated area of structures, equipment and other property brought into thedesignated area for or in connection with exploration for, or the exploitationof, petroleum that are not used or intended to be used in connection with explorationfor, or the exploitation of, petroleum in the designated area; and

(x) generally prescribingall matters and things required by this Act to be prescribed or which may appear to the Ministerto be expedient or necessary for the better carrying out of the provisions ofthis Act.

(3)The regulations may provide, in respect of an offence against the regulations,for the imposition of-

(a) a fine not exceeding$1,000;

(b) a fine not exceedingthat amount for each time the offence occurs;

(c) imprisonment for aterm not exceeding two years; or

(d) both such fine andimprisonment.

(4)The Regulations may prescribe annual fees to be paid in respect of explorationlicences, production licences and pipeline licences.

(Inserted by Act 17 of 1985, s. 5.)

PARTXV-REPEAL AND SAVING

Repeal and saving

101. The Oil Mines Act is hereby repealed:
Provided that all exploration licences issued under the provisions of that Actshall be deemed to have been issued under and subject to the provisions of thisAct and notwithstanding anything to the contrary in any such licence or anyagreement entered into with the holder of any such licence shall be deemed tohave been issued under the provisions of this Act.

 

Controlled by the Ministry of Lands, Energy andMineral Resources

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