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Union of India - Section

Section 35 in The Petroleum Concession Rules, 1949

35. Conditions of prospecting licence .-Every licence shall, in addition to such other conditions as may in any particular case be found necessary, contain the following conditions:--

(i)The licensee shall pay annually, in advance, such prospecting fee as may be fixed by the Central Government, not less than eight annas and not more than Re. 1 per acre of the land covered by the licence, for each year or portion of a year of the term for which the licence is granted. When a licence is renewed, the prospecting fees shall be fixed by the Central Government, subject to a minimum of Re. 1 per acre but not exceeding the following rates:-
Rs. 1.25 for 1st year of renewal; Per acre.
Rs. 1.50 for 2nd year of renewal;
Rs. 1.75 for 3rd year of renewal;
Rs. 2.00 for 4th and subsequent year of renewal;
(ii)The licence shall not confer upon the licensee any right to win or, carry away petroleum for commercial purposes:
Provided that he may carry away-
(a)any quantity up to 4,000 gallons without any payment; and
(b)any quantity exceeding the above which is incidental to prospecting, on payment of royalty at the rates specified in Schedule 1"> (b) any quantity exceeding the above which is incidental to prospecting, on payment of royalty at the rates specified in Schedule 1.
(iii)The licensee shall make reasonable satisfaction and pay such compensation as may be assessed by the lawful authority in accordance with the law in force on the subject applying to the lands over which the licence has been granted, for any damage, injury or disturbance which may be done by him in exercise of the powers granted by the licence and shall indemnify the Government against all claims which may be made by third parties in respect of any such damage, injury or disturbance.
(iv)The licensee shall not cut or injure any tree on unoccupied and unreserved land without the permission in writing of the proper authority, nor disturb the surface of any road, or enter on any public pleasure ground, burning or burying ground or place held sacred by any class of persons, or interfere with any right-of-way, well or tank.
(v)The licensee may, with the previous consent of the Central Government, transfer his license or any right or interest therein to a person holding a certificate of approval for petroleum on payment to the Central Government of a fee of rupees two hundred.
(vi)The licensee shall not be controlled by any trust, syndicate, corporation, firm or person, except with the written consent of the Central Government.
(vii)The licensee shall be at liberty to determine the licence or surrender or relinquish any part of the licensed area on giving not less than three calendar months' notice in writing to the Central Government.
(viii)In case of breach of any of the conditions of the licence by the licensee or his transferee or assignee the Central Government may, where it is satisfied that the breach is such as cannot be remedied, on giving thirty days' notice to the licensee or his transferee or assignee, forfeit the whole or part of the deposit made under rule 3, or determine the licence. In case the Central Government considers the breach to be of a remediable nature, it shall give notice to the licensee, or his transferee or assignee, as the case may be, requiring him to remedy the breach within thirty days from the date of receipt of the notice informing him of the penalty proposed to be inflicted if such remedy is not made within such period:
Provided that if the licensee or his transferee or assignee claims that he has not committed any such breach, or that the penalty proposed therefor is unduly severe or that the breach is of a remediable nature, he may submit the dispute to arbitration as provided in rule 64 within thirty days from the date of receipt of the notice, and if he does so, the Central Government shall not take any action under this clause till the award of the arbitrators is announced, and in case the arbitrators, or the umpire find that a breach has been committed and that it is of a remediable nature the thirty days' time remedying the same shall run from the date of announcement of the award.
(ix)Save in the case of land over which the licensee has been granted a mining lease on or before the determination of his licence, he shall, within six months following the determination of the licence or the date of abandonment of the undertaking, whichever shall occur first, securely plug all bore-holes and fill up or fence all excavations that he may have made in the land and shall restore the surface of the land and all buildings thereon which may have been damaged in the course of prospecting:-
Provided that the licensee shall not be required to restore the surface of the land or any buildings in respect of which full and proper compensation has already been paid under condition (iii) above.