Power to make rules as respects mineral oils development

Section 6 of the Oilfields (Regulation and Development) Act, 1948 deals with power to make rules as respects mineral oils development. The Central Government may, by notification in the Official Gazette, make rules for the [exploration, development, production and conservation] of [mineral oils]. The Act came into force on 25 Oct 1949.

6. Power to make rules as respects ¹[mineral oils] development.--- (1) The Central Government may, by notification in the Official Gazette, make rules for the ²[exploration, development, production and conservation] of ³[mineral oils].

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: ---

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(c) the development of any ⁵[mineral oil resources] in any area by prescribing or regulating the use of any engines, machinery or other equipment;

(d) the regulation of drilling, re-drilling, deepening, shutting down, plugging and abandoning of ⁶[mineral oil wells and decommissioning and site restoration activities] in an oilfield and for the limitation or prohibition of such operations and for the taking of remedial measures to prevent waste of or damage to ⁷[mineral oils];

(e) the regulation of the methods of producing ⁷[mineral oils] in any oilfield, and the limitation or prohibition of such methods;

(f) the compulsory notification of all new borings and shaft sinkings, and the preservation of boring records and specimens of cores of all new bore-holes;

(g) the taking of samples from ⁸[oilfields] and new bore-holes;

⁹[(ga) the collection, aggregation, dissemination, use or sharing of the data and samples related to mineral oils with the Central Government or any other party nominated by the Central Government, for the purposes of economic development, academic research and public welfare;]

(h) the regulation of the arrangements for the storage of ³[mineral oils] and the stocks thereof that may be kept by any person;

¹⁰[(i) the collection of royalties, and the levy and collection of fees or taxes, in respect of mineral oils ¹¹[produced];]

(j) the submission by the ¹²[lessees of oilfields of special or periodical returns and reports, and the formats] in which and the authorities to whom such returns and reports shall be submitted.

¹³[(k) the sharing of production and processing facilities and other infrastructure, both on land and offshore, by two or more lessees for more efficient development of oilfields or production of mineral oils;

(l) the safety at oilfields including safety mechanisms, standards and protocols for conduct of mineral oil operations, protection of persons and infrastructure such as terminals, installations, other structures and devices, and mineral oils;

(m) the sound management of mineral oils in accordance with good international petroleum industry practices including obligations of lessees towards protection of environment during operations and while abandoning, decommissioning and undertaking site restoration activities;

(n) the unitisation of leases across States, Union territories and offshore leases, where there is reservoir continuity or connectivity, or for efficient exploration, development or production of mineral oils;

(o) promote and facilitate adoption of measures for reducing carbon and greenhouse gas emissions and decarbonising operations including but not limited to use of oilfields for other purposes, such as, production of hydrogen, carbon capture utilisation and storage or coal gasification;

(p) reporting of carbon and greenhouse gas emissions related to, arising out of, or resulting from, mineral oil operations;

(q) promote and facilitate development of comprehensive energy projects at oilfields, including planning, development, installation, sharing and use of infrastructure for carrying out mineral oil operations and solar, wind or other form of renewable energy projects;

(r) any other matter which is required to be, or may be made by rules, or in respect of which provision is to be made under this section.]

Section 6, The Oilfields (Regulation and Development) Act, 1948 (Act 53 of 1948).