Petroleum and Other Minerals Development Act, 1960

Chapter IX.

Miscellaneous and General.

Provisions in relation to petroleum operations.

52.—(1) (a) Regulations may provide for all or any of the following matters—

(i) the siting and spacing of petroleum wells,

(ii) safety measures in relation to petroleum operations,

(iii) restrictions on the production of petroleum from boreholes commenced or completed nearer the boundaries of land to the petroleum under which a petroleum lease applies than the distance specified in the regulations,

(iv) the conservation of petroleum,

(v) restrictions on the disposal of water and waste products,

(vi) the blocking of abandoned boreholes,

(vii) the measurement of petroleum,

(viii) such other matters in relation to petroleum operations as the Minister thinks necessary or expedient to provide for.

(b) If any person (being the licensee under a licence granted under this Part or the lessee under a petroleum lease) contravenes (by act or omission) any regulation made under this subsection, such person shall be guilty of an offence under this subsection.

(2) (a) If it appears to the Minister that a petroleum operation is being conducted in such a manner (whether by act or omission) as to cause loss, contamination, deterioration or misuse of petroleum products or other minerals which would not normally occur if the operation were conducted in accordance with good oilfield practice, then, he may serve by registered post on the person conducting the operation a notice requiring him to take, within a specified time, such remedial action as will prevent such loss, contamination, deterioration or misuse occurring.

(b) If it appears to the Minister that a petroleum operation is being conducted in such a manner (whether by act or omission) as to cause or to be likely to cause unnecessary damage, then, he may serve by registered post on the person conducting the operation, a notice requiring him to take, within a specified time, such remedial action as will prevent such damage occurring.

(c) Where a notice is served under paragraph (a) or (b) of this subsection and the person on whom the notice is served (in this paragraph referred to as the defaulter) does not comply with the notice, the following provisions shall have effect—

(i) the defaulter shall be guilty of an offence under this subsection,

(ii) the Minister may (whether proceedings have or have not been taken against the defaulter under sub-paragraph (i) of this paragraph) take such remedial action as was required by the notice to be taken by the defaulter, and may recover any expenses incurred by him in doing so from the defaulter as a simple contract debt in any court of competent jurisdiction.

(d) Where the Minister is entitled under subparagraph (ii) of paragraph (c) of this subsection to recover any expenses, a certificate sealed with the official seal of the Minister and certifying the amount thereof shall be prima facie evidence of the amount of such expenses.

(3) Every person guilty of an offence under subsection (1) or (2) of this section shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds, together with, in the case of a continuing offence, a further fine not exceeding one hundred pounds for every day on which the offence is continued.

(4) Where the same set of facts constitutes an offence under both subsection (1) and subsection (2) of this section and the offender is charged with both offences, the offender shall be liable to be punished for one of the offences only.