Section 5 in The Petroleum and Natural Gas Rules, 1959
5. [ Grant of licenses and leases.
- ][(1) A license or lease in respect of-(i)any land or mineral underlying the ocean within the territorial waters or the continental shelf ][or the exclusive economic zone] [ Substituted by G.S.R. 295(E), dated 1.4.2003 (w.e.f. 1.4.2003).][( of India and vested in the Union, shall be granted by the Central Government, and] [Substituted by G.S.R. 371, dated 9.3.1966. ](ii)[ any land vested in a State Government, shall be granted by the State Government with the previous approval of the State Government.] [ Substituted by G.S.R. 1568, dated 7.9.1968.](2)Every license and lease shall contain such of the terms, covenants and conditions prescribed by these rules as are applicable and such additional terms, covenants and conditions as may be provided in the agreement "between the Central Government and the licensee or the lessee:Provided that [where the license or lease has been or is to be granted by the State Government] [ Inserted by G.S.R. 371, dated 9.3.1966.] the Central Government shall consult the State Government before agreeing to such additional terms, covenants and conditions.(3)The Central Government, if it deems fit, may from time to time notify in the Official Gazette, particulars regarding the basis on which the Central Government may be prepared to consider proposals for prospecting or mining operations in any specified area or areas.
