Bill redefines 'mineral oils' to include shale gas, coal bed methane and gas hydrates

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 and increase domestic production by creating an investor-friendly environment with stable lease terms and broader definitions of hydrocarbons.

The law affects any person or entity undertaking operations for prospecting, exploration, development, or production of mineral oils in India, its territorial waters, continental shelf, and exclusive economic zone. It specifically applies to lessees holding petroleum leases and those seeking new grants, extensions, or renewals of such leases.

• 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 excluding coal, lignite, and helium.
• Replaces the term 'mining lease' with 'petroleum lease' throughout the Act.
• Prohibits any person from undertaking mineral oil operations except under a valid petroleum lease granted under the Act.
• Mandates that the terms and conditions of a petroleum lease remain stable and shall not be altered to the disadvantage of the lessee during the lease period.
• Empowers the Central Government to make rules for sharing production facilities, ensuring safety, managing environmental protection, unitizing leases across states/offshore, and promoting carbon reduction and renewable energy projects at oilfields.
• Establishes a penalty of 25 lakh rupees for contravening specific sections, with an additional penalty of up to 10 lakh rupees per day for continued contravention.
• 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.
• 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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