Section 6 in The Oilfields (Regulation And Development) Act, 1948
6. Power to make rules as respects mineral oils development .-(1) The Central Government may, by notification in the Official Gazette, make rules for the conservation and development of [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:-[* * *] [ Clauses (a) and (b) omitted by Act 67 of 1957, Section 32 and Schedule III (w.e.f. 1.6.1958).][* * *] [ Clauses (a) and (b) omitted by Act 67 of 1957, Section 32 and Schedule III (w.e.f. 1.6.1958).](c)the development of any [mineral oil resources] [ Substituted by Act 67 of 1957, Section 32 and Schedule III, for " mineral resources" (w.e.f. 1.6.1958).] in any area by prescribing or regulating the use of any engines, machinery or other equipment;(d)the regulation of the drilling, redrilling, deepening, shutting down, plugging and abandoning of oil-wells 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 oil;(e)the regulation of the methods of producing oil 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 mines and new bore-holes;(h)the regulation of the arrangements for the storage of [mineral oils] [ Substituted by Act 67 of 1957, Section 32 and Schedule III, for " minerals" (w.e.f. 1.6.1958).] and the stocks thereof that may be kept by any person;(i)[ the collection of royalties, and the levy and collection of fees or taxes in respect of mineral oils mined, quarried, excavated or collected;] [ Substituted by Act 39 of 1969, Section 2, for Clause (i) (w.r.e.f. 1.1.1968).](j)the submission by the owners or lessees of mines of special or periodical returns and reports, and the forms in which and the authorities to whom such returns and reports shall be submitted.[6-A. 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.](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 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.(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.] [Substituted by Act 29 of 1998, Section 2, for sub-Sections (4) and (5) (w.r.e.f. 3.10.1998). ]
