Business News | Oilfields (Regulation and Development) Amendment Bill, 2024 Passed in Rajya Sabha

New Delhi [India], December 3 (ANI): Oilfields (Regulation and Development) Amendment Bill, 2024 to expand the definition of mineral oils and include petroleum and natural gas passed in the Rajya Sabha on Tuesday.

The bill was introduced by Union petroleum and natural gas minister Hardeep Singh Puri for consideration and passing. The Bill will regulate the exploration and extraction of natural gas and petroleum. The amended bill expands the definition of mineral oils to include petroleum and natural gas in it.

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The amended bill includes any naturally occurring hydrocarbon, coal bed methane, and shale gas/oil in the category of mineral oils. However, it clarifies that mineral oils will not include coal, lignite or helium.

The amended bill also provides for mining leases, this will include various activities such as exploration, prospecting, production, making merchantable, and disposal of mineral oils.

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Prospecting is the initial stage in the search for oil and gas fields, involving the assessment of potential petroleum accumulations across large areas.

The new bill will replace the mining lease with a petroleum lease to cover a similar set of activities. However, existing mining leases granted under the old Act will continue to be valid.

The new bill will empower the central government to make rules on several matters like regulating the grant of leases, terms and conditions of leases including the minimum and the maximum area and the period of the lease, conservation and development of mineral oils, methods for producing oil, and manner of collection of royalties, fees, and taxes.

The proposal also empowers the central government to make rules on the merger and combination of petroleum leases, sharing of production and processing facilities, obligations of lessees towards protecting the environment and reducing emissions and alternative mechanisms for resolving disputes in relation to the grant of petroleum leases.

For cases of violation of rules, the bill provides to hike the punishment and penalty from a current fine of Rs 1000 to Rs 25 lakhs. In cases of exploring, prospecting and production without a valid lease a penalty of Rs 25 lakhs and continued violations will attract a penalty of Rs 10 lakh per day.

For dispute resolution, the central government will appoint an officer of the rank of joint Secretary or above for adjudication of penalties. Appeals against the decision of the adjudication officer can be filed at the Appellate tribunal specified in the Petroleum and Natural Gas Board Regulatory Board Act, 2006. (ANI)

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