Petroleum and Other Minerals Development Act, 1960

Royalty rents for petroleum acquired under the Mines and Minerals Act, 1931, and the Minerals Development Act, 1940.

53.—Where—

(a) a royalty rent has been fixed, by an award made under the Mines and Minerals Act, 1931 or by an agreement made under that Act, as compensation for petroleum acquired under that Act, or

(b) a royalty rent has been fixed, by an award made under the Minerals Development Act, 1940 or by an agreement made under that Act, as compensation for petroleum acquired under that Act,

the said royalty rent, in respect of so much if any of that petroleum as is brought to the surface at a petroleum well within the appointed area in relation to that petroleum well (as defined by subsection (1) of section 33 of this Act), shall, in lieu of being at the rate fixed by the relevant award or agreement, be at a rate which bears to the rate fixed by the relevant award or agreement the same proportion as that part of the area to which the relevant award or agreement relates and which is inside the said appointed area bears to the said appointed area.