Section 6-A   [ View Judgements ]

Royalties in respect of mineral oils


(1) The holder of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969, shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any mineral oil mined, quarried, excavated or collected by him from the leased area after such commencement, at the rate for the time being specified in the Schedule in respect of that mineral oil.



(2) The holder of a mining lease granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969, shall pay royalty in respect of any mineral oil mined, quarried, excavated or collected by him from the leased area at the rate for the time being specified in the Schedule in respect of that mineral oil.



(3) Notwithstanding anything contained in Sub-section (1) or Sub-section (2), no royalty shall be payable in respect of any crude oil, casing-head condensate or natural gas which is unavoidably lost or is returned to the reservoir or is used for drilling or other operations relating to the production of petroleum, or natural gas or both



[2] ["(4) The Central Government may, notification in the Official Gazette, amend the Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral oil with effect from such date as may be specified in the notification and different rates may be notified in respect of same mineral oil mined, quarried, excavated or collected from the areas covered by different classes of mining leases:



Provided that the Central Government shall not fix the rates of royalty in respect of any mineral oil so as to exceed twenty per cent of the sale price of the mineral oil at the oilfields or the oil well-head, as the case may be.



[3] (5) If the Central Government, with a view to encourage exploration in offshore areas, is satisfied that it is necessary in the public interest so to do, it may by notification in the Official Gazette, exempt generally, either absolutely or subject to such conditions as may be specified in the notification, mineral oil produced from such areas from the whole or any part of the royalty leviable thereon.".]

FOOTNOTES:

1. Inserted by Oilfields (Regulation and Development) Amendment Act, 1969), Section 3 (with retrospective effect from 1-1-1968).

2. Substituted by the Oilfields (Regulation and Development) (Amdt) Act, 1998 with effect from . 03-09-1998. Prior to Substitution it read as under



"(4) The central Government may, by notification in the Official Gazette, amend the Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral oil with effect from such date as may be specified in the notification:



Provided that the Central Government shall not-



(a) fix the rate of royalty in respect of any mineral oil so as to exceed twenty per cent of the sale price of the mineral oil at the oilfields or the oil well-head, as the case may be, or



(b) enhance the rate of royalty in respect of any mineral oil more than once during any period of



(Substituted for the words "four years", by Oilfields (Regulation and Development) Amendment Act, 1969), (20 of 1984) Section 2 (11-5-84).)[three years]

3. Substituted by the Oilfields (Regulation and Development) (Amdt) Act, 1998 with effect from . 03-09-1998. Prior to Substitution it read as under



"[(5) Notwithstanding anything contained in sub-section (4), the Central Government may, by notification in the Official Gazette, amend the Schedule so as to enhance the rate royalty payable in respect of mineral oil, produced during the period beginning on the 1st day of April, 1990 and ending on the 31st day of March, 1993, to 24.52 per cent of the sale price of mineral oil at the oilfields or the oil well-head, as the case may be.]

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