Section 6A of The Oilfields (Regulation and Development) Act, 1948 in hindi
1[6A. Royalties in respect of mineral oils.--- (1) The holders of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 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 2[produced] 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 3[or petroleum lease] granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall pay royalty in respect of any mineral oil 2[produced] 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 4[mineral oils] which is unavoidably lost or is returned to the reservoir or is used for drilling or other operations relating to the production of 5[mineral oils]. 6[(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 and different rates may be notified in respect of same mineral oil 2[produced] or collected from the areas covered by different classes of 7[petroleum 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.
- (5)If the Central Government, with a view to encourage exploration in off-shore 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.]
Summary
- Lease holders must pay royalty on any mineral oil they produce or collect.
- The royalty rates are listed in the Schedule of the Act.
- The Central Government can change royalty rates by publishing a notification.
- No royalty is paid on oil that is lost by accident or used for drilling operations.
- The government can give royalty exemptions for offshore areas to help exploration.
Practical examples
FAQ
1. How much royalty do I have to pay?
You must pay the rate specified in the Schedule for that specific mineral oil.
2. Do I pay royalty if oil leaks out of a pipe and is lost?
No, royalty is not payable on oil that is unavoidably lost.
3. Can the government lower royalties for offshore projects?
Yes, they can exempt offshore oil from some or all royalties to encourage exploration.
Test yourself
Q1.Under Section 6A of The Oilfields (Regulation and Development) Act, 1948, where are the specific rates of royalty found?
Q2.Under Section 6A of The Oilfields (Regulation and Development) Act, 1948, what is the maximum royalty rate the Central Government can set?
Q3.Under Section 6A of The Oilfields (Regulation and Development) Act, 1948, is royalty paid on oil returned to the reservoir?
Q4.Under Section 6A and Section 3 of The Oilfields (Regulation and Development) Act, 1948, who is responsible for paying royalties?
Q5.Under Section 6A of The Oilfields (Regulation and Development) Act, 1948, why might the government exempt an area from royalty?