Section 21 in The Petroleum Concession Rules, 1949
21. Conditions of an exploring licence .-Every exploring licence shall, in addition to such other conditions as may be found necessary in any particular case, contain the following conditions:--
(i)The licensee shall pay annually, in advance, an exploring fee of Re. 1 per square mile of land covered by the licence for each year or portion of a year for which the licence is granted.(ii)The licence shall not confer upon the licensee any right to win or carry away petroleum:Provided that for experimental purposes, the licensee may carry away petroleum from the surface seepages, if any, up to a maximum quantity of 1,000 gallons, free of royalty.(iii)The licensee shall make a reasonable satisfaction and pay such compensation as may be assessed by lawful authority in accordance with the law on the subject applying to 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, without the permission in writing of the proper authority, cut or injure any tree on unoccupied and unreserved land nor disturb the surface of any road, or enter on any public pleasure, ground, burning or buying 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 licence or any right or interest to person, holding a certificate of approval for petroleum, on payment to the Central Government of a fee of rupees one 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 one month's notice in writing to the Central Government.(viii)In case of breach of any of the conditions of the licence 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 17 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, 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, and 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 arbitration 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 for 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 prospecting licence or mining lease, he shall, within three months following the determination of the licence or the date of abandonment of the undertaking, whichever, shall occur first, securely plug any bore-holes and fill up or fence any excavations or ditches that he may have made on the land:Provided that he shall not be required to restore that surface of the land in respect of which full and proper compensation has already been paid under condition (iii) above.
