Gas Act, 1976

Certain gas to be offered for sale to Board.

37.—(1) Subject to subsection (2) of this section, all natural gas landed in the State, or got within the jurisdiction of the State, for consumption therein, by the licensee under an exploration licence or the lessee of a petroleum lease shall be offered for sale to the Board on reasonable terms and any gas which is offered pursuant to this section and which is purchased by the Board shall, unless a consent is given by the Minister under section 8 (7) of this Act, be disposed of by the Board for consumption in the State.

(2) Subsection (1) of this section shall not apply as regards natural gas which pursuant to—

(a) terms and conditions upon which an exploration licence is granted by the Minister for Industry and Commerce, or

(b) conditions or a subsidiary agreement contained in a petroleum lease,

the Minister for Industry and Commerce, in approving a plan for the development or exploitation of a deposit of natural gas, requires to be offered for sale to a person, other than the Board, for an industrial purpose specified in the requirement.

(3) If any dispute arises as to the reasonableness of terms on which natural gas is offered for sale to the Board, pursuant to the requirements of subsection (1) of this section, such dispute shall be determined by arbitration pursuant to the Arbitration Act, 1954 , and in determining such a dispute expenses, other than the geological, geophysical, drilling or other exploration expenses which may properly be attributed to the discovery, delineation or development of the deposit from which the relevant natural gas is to be got, shall not be taken into account by the arbitrator.