Bill excludes coal, lignite, helium from mineral oils definition

This Bill amends the Oilfields (Regulation and Development) Act, 1948 to modernize the legal framework for the exploration and production of mineral oils. It aims to attract investment, ensure energy security, and create an investor-friendly environment by updating definitions and lease terms to reflect current global energy contexts.

The law affects any person, business, or entity undertaking operations for the prospecting, exploration, development, production, or disposal of mineral oils in India, its territorial waters, continental shelf, and exclusive economic zone. It also applies to lessees of oilfields and the Central Government, which retains powers to grant leases and make rules.

• Redefines 'mineral oils' to include natural gas, crude oil, condensate, coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil, and gas hydrates, while explicitly excluding coal, lignite, and helium.
• Replaces the term 'mining lease' with 'petroleum lease' throughout the Act.
• Prohibits any person from undertaking mineral oil operations without a valid lease granted under the Act, except for operations under licenses or leases granted before the Amendment Act's commencement.
• Mandates that the terms and conditions of a petroleum lease must remain stable during the lease period and cannot be altered to the disadvantage of the lessee.
• Establishes a penalty of 25 lakh rupees for contravening specific sections (4A or 6A) or rules, with an additional penalty of up to 10 lakh rupees per day for continued contravention after the initial penalty.
• Creates an adjudicating authority (not below the rank of Joint Secretary) to conduct inquiries and impose penalties, with appeals lying to the Appellate Tribunal under the Petroleum and Natural Gas Regulatory Board Act, 2006.
• Allows for the unitization of leases across states and offshore areas where there is reservoir continuity, and promotes measures for reducing carbon emissions and developing renewable energy projects at oilfields.
• Confirms that all mining leases and licenses granted before the commencement of this Amendment Act remain valid for their respective tenure.

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