The Oilfields (Regulation and Development) Act, 1948

--- Section 1. Section 1.Short title, extent and commencement. --- (1) This Act may be called The 1 [Oilfields] (Regulation and Development) Act, 1948. 2 [(2) It extends to the whole of India 3 ***]. (3) it shall come into force on such date 4 as the Central Government may, by notification in the Official Gazette, appoint in this behalf. [Footnotes] 1. Subs. by s. 32 and the Third Schedule, ibid ., for "Mines and Minerals" (w.e.f. 1-6-1958). 2. Subs. by the A.O. 1950, for sub-section 2. 3. The words "except the State of Jammu and Kashmir" omitted by Act 67 of 1957, s. 32 and the Third Schedule,(w.e.f. 1-6- 1958). 4. 25th October, 1949 see Notification No. M-II-155 (24)-I, dated 18th October 1949, Gazette of India, Extraordinary, 1949. --- Section 2. Section 2.[Omitted.]. --- [Declaration as to expediency of control by Central Government.] mitted by the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), s. 32 and the Third Schedule (w.e.f. 1-6-1958).] --- Section 3. Section 3.Definitions. --- In this Act, unless there is anything repugnant in the subject or context,--- (a) the expressions "lessor" and "lessee" respectively include a licensor and licensee; 1 * * * * * 2 [(c) "mineral oils" means any naturally occurring hydrocarbon, whether in the form of natural gas or in a liquid, viscous or solid form, or a mixture thereof, and includes crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil, gas hydrate in their usual industrial connotation and other gases occurring in association with mineral oils, but does not include coal, lignite and helium occurring in association with petroleum or coal or shale;] (d) "mining lease" means a lease granted for the purpose of searching for, winning, working, getting, making merchantable, carrying away or disposing of 3 [mineral oils] or for purposes connected therewith, and includes an exploring or a prospecting license 4 [granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 2025]; (e) "oilfield" means any area where any operation for the purpose of obtaining 5 [mineral oils], refined oil, partially refined oil and any of the products of petroleum in a liquid or solid state, is to be or is being carried on. 6 [(f) "petroleum lease" means a lease granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 2025, for the purpose of prospecting, exploration, development, production, making merchantable, carrying away or disposing of mineral oils or for purposes connected therewith, and includes a mining lease granted before the commencement of the said Act.] [Footnotes] 1. Cl. (b) omitted by Act 6 of 2025, s. 2 (w.e.f. 15-4-2025). 2. Subs. by s. 2, ibid., for clause (c) (w.e.f. 15-4-2025). 3. Subs. by Act 67 of 1957, s. 32 and the Third Schedule, for minerals (w.e.f. 1-6-1958). 4. Ins. by Act 6 of 2025, s. 2, (w.e.f. 15-4-2025). 5. Subs. by s. 2, ibid ., for "natural gas and petroleum, crude oil" (15-4-2025). 6. Ins. by s. 2, ibid ., (w.e.f. 15-4-2025). --- Section 4. Section 4.No petroleum lease to be valid unless it is in accordance with this Act. --- 4. No 1 [petroleum lease] to be valid unless it is in accordance with this Act.--- (1) No 1 [petroleum lease] shall be granted after the commencement of this act otherwise than in accordance with the rules made under this Act. (2) Any 1 [petroleum lease] granted contrary to the provisions of sub-section (1) shall be void and of no effect. [Footnotes] 1. Subs. by Act 6 of 2025, s. 3, for "mining lease" (w.e.f. 15-4-2025) --- Section 4A. Section 4A.prospecting, etc., of mineral oils. --- 1 [ 4A. Prospecting, etc., of mineral oils.--- No person shall undertake any operation in any part of India or in its territorial waters, continental shelf and exclusive economic zone for the purposes of prospecting, exploration, development or production, making merchantable, carrying away or disposing of mineral oils, except under a valid lease granted under this Act and the rules made thereunder: Provided that nothing in this section shall affect any operation undertaken in any area in accordance with the terms and conditions of a license or lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 2025.] [Footnotes] 1. Ins. by Act 6 of 2025, s. 4 (w.e.f. 15-4-2025). --- Section 5. Section 5.Power to make rules as respects petroleum leases. --- 5. Power to make rules as respects 1 [petroleum leases].--- (1) The Central Government may, by notification in the Official Gazette, make rules for regulating the 2 [grant or extension or renewal of petroleum leases or for prohibiting the grant or extension or renewal] of such leases in respect of any 3 [mineral oil] or in any area. (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: --- (a) the manner in which, the 3 [mineral oil] or areas in respect of which and the persons by whom, applications for 4 [petroleum leases] may be made and the fees to be paid on any such application; (b) the authority by which, the terms on which, and the conditions subject to which, 5 [petroleum leases may be granted or extended or renewed]; 6 [(c) the maximum or minimum area of the petroleum leases; (ca) the period for which any petroleum lease may be granted or extended or renewed; (cb) the terms on which petroleum leases may be merged or combined;] (d) the fixing of the maximum and minimum rent payable by a lessee, whether the 7 [oilfield] is worked or not. 8 [(e) the mechanism to enable resolution of disputes arising out of, or in relation to the petroleum leases or any authorisation granted by the Central Government for working of an oilfield through alternative dispute resolution methods under any law for the time being in force, in a place within India or outside India; (f) any other matter which is required to be, or may be made by rules or in respect of which provision is to be made under this section.] 8 [(3) The terms and conditions of a petroleum lease shall remain stable during the period of the lease for expeditious and efficient development of oilfields or production of mineral oils and shall not be altered to the disadvantage of the lessee during the period of the lease.] [Footnotes] 1. Subs. by Act 6 of 2025, s. 5, for "mining leases" (w.e.f. 15-4-2025). 2. Subs. by s. 5, ibid ., for certain words (w.e.f. 15-4-2025). 3. Subs. by Act 67 of 1957, s. 32 and the Third Schedule, for "minerals" (w.e.f.1-6-1958). 4. Subs. by Act 6 of 2025, s. 5, for "mining leases" (w.e.f. 15-4-2025). 5. Subs. by s. 5, ibid ., for "mining leases may be granted" (w.e.f. 15-4-2025). 6. Subs. by s. 5, ibid ., for clause (c) (w.e.f. 15-4-2025). 7. Subs. by s. 5, ibid ., for "mine" (w.e.f. 15-4-2025). 8. Ins. by s. 5, ibid . (w.e.f. 15-4-2025). --- Section 6. Section 6.Power to make rules as respects mineral oils development. --- 6. Power to make rules as respects 1 [mineral oils] development. --- (1) The Central Government may, by notification in the Official Gazette, make rules for the 2 [exploration, development, production and conservation] of 3 [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: --- 4 * * * * * (c) the development of any 5 [mineral oil resources] in any area by prescribing or regulating the use of any engines, machinery or other equipment; (d) the regulation of drilling, re-drilling, deepening, shutting down, plugging and abandoning of 6 [mineral oil wells and decommissioning and site restoration activities] 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 7 [mineral oils]; (e) the regulation of the methods of producing 7 [mineral oils] 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 8 [oilfields] and new bore-holes; 9 [(ga) the collection, aggregation, dissemination, use or sharing of the data and samples related to mineral oils with the Central Government or any other party nominated by the Central Government, for the purposes of economic development, academic research and public welfare;] (h) the regulation of the arrangements for the storage of 3 [mineral oils] and the stocks thereof that may be kept by any person; 10 [(i) the collection of royalties, and the levy and collection of fees or taxes, in respect of mineral oils 11 [produced];] (j) the submission by the 12 [lessees of oilfields of special or periodical returns and reports, and the formats] in which and the authorities to whom such returns and reports shall be submitted. 13 [(k) the sharing of production and processing facilities and other infrastructure, both on land and offshore, by two or more lessees for more efficient development of oilfields or production of mineral oils; (l) the safety at oilfields including safety mechanisms, standards and protocols for conduct of mineral oil operations, protection of persons and infrastructure such as terminals, installations, other structures and devices, and mineral oils; (m) the sound management of mineral oils in accordance with good international petroleum industry practices including obligations of lessees towards protection of environment during operations and while abandoning, decommissioning and undertaking site restoration activities; (n) the unitisation of leases across States, Union territories and offshore leases, where there is reservoir continuity or connectivity, or for efficient exploration, development or production of mineral oils; (o) promote and facilitate adoption of measures for reducing carbon and greenhouse gas emissions and decarbonising operations including but not limited to use of oilfields for other purposes, such as, production of hydrogen, carbon capture utilisation and storage or coal gasification; (p) reporting of carbon and greenhouse gas emissions related to, arising out of, or resulting from, mineral oil operations; (q) promote and facilitate development of comprehensive energy projects at oilfields, including planning, development, installation, sharing and use of infrastructure for carrying out mineral oil operations and solar, wind or other form of renewable energy projects; (r) any other matter which is required to be, or may be made by rules, or in respect of which provision is to be made under this section.] [Footnotes] 1. Subs. by Act 6 of 2025, s. 6, for "mineral" (w.e.f.15-4-2025). 2. Subs. by s. 6, ibid. , for "conservation and development" (w.e.f.15-4-2025). 3. Subs. by Act 67 of 1957, s. 32 and the Third Schedule, for "minerals" (w.e.f.1-6-1958). 4. Clauses (a) and (b) omitted by s. 32 and the Third Schedule, ibid. , (w.e.f.1-6-1958). 5. Subs. by s. 32 and the Third Schedule, ibid. , for "mineral resources" (w.e.f.1-6-1958). 6. Subs. by Act 6 of 2025, s. 6, for "oil wells" (15-4-2025). 7. Subs. by s. 6, ibid. , for "oil" (15-4-2025). 8. Subs. by s. 6, ibid. , for "mines" (15-4-2025). 9. Ins. by s. 6, ibid. (15-4-2025). 10. Subs. by Act 39 of 1969, s. 2, for clause (i) (w.e.f. 1-1-1968). 11. Subs. by Act 6 of 2025, s. 6, for "mined, quarried, excavated or collected" (w.e.f. 15-4-2025). 12. Subs. by s. 6, ibid. , for certain words (w.e.f. 15-4-2025). 13. Ins. by s. 6, ibid. (w.e.f. 15-4-2025). --- Section 6A. Section 6A.Royalties in respect of mineral oils. --- 1 [6A. Royalties in respect of mineral oils. --- (1) The holders of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 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 2 [produced] 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 3 [or petroleum lease] granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall pay royalty in respect of any mineral oil 2 [produced] 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 4 [mineral oils] which is unavoidably lost or is returned to the reservoir or is used for drilling or other operations relating to the production of 5 [mineral oils]. 6 [(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 2 [produced] or collected from the areas covered by different classes of 7 [petroleum 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 off-shore 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.] [Footnotes] 1. Ins. by Act 39 of 1969, s. 3 (w.e.f. 1-1-1968). 2. Subs. by Act 6 of 2025, s. 7, for "mined, quarried, excavated" (w.e.f. 15-4-2025). 3. Ins. by s. 7, ibid. (w.e.f. 15-4-2025). 4. Subs. by s. 7, ibid. , for "crude oil, casing-head condensate or natural gas" (w.e.f. 15-4-2025). 5. Subs. by s. 7, ibid. , for "petroleum or natural gas, or both" (w.e.f. 15-4-2025). 6. Subs. by Act 29 of 1998, s. 2, for sub-section (4) (w.e.f. 3-9-1998). 7. Subs. by Act 6 of 2025, s. 7, for "mining leases" (w.e.f. 15-4-2025). --- Section 7. Section 7.Power to make rules for modification of existing leases. --- (1) The Central Government may, by notification in the Official Gazette, make rules for the purpose of modifying or altering the terms and conditions of any mining lease granted prior to the commencement of this Act so as to bring such lease into conformity with the rules made under sections 5 and 6: Provided that any rules so made which provide for the matters mentioned in clause (c) of subsection (2) shall not come into force until they have been approved, either with or without modifications, by 1 [the House of the People]. (2) The rules made under sub-section (1) shall provide-- (a) for giving previous notice of the modification or alteration proposed to be made thereunder to the lessee, and where the lessor is not the Central Government, also to the lessor, and for affording them an opportunity of showing cause against the proposal; (b) for the payment of compensation by the party who would be benefited by the proposed modification or alteration to the party whose right under the existing lease would thereby be adversely affected; and (c) for the principles on which, the manner in which and the authority by which the said compensation shall be determined. [Footnotes] 1.Subs. by the A. O. 1950, for "the Central Legislature". --- Section 8. Section 8.Delegation. --- The Central Government may, by notification in the Official Gazette, direct that any power exercisable under this Act shall be exercised,subject to such conditions, if any, as may be specified therein by such officer or authority as may be specified in the direction. --- Section 9. Section 9.Penalties. --- 1 [ 9. Penalties. --- (1) Whoever contravenes the provisions of section 4A or sub-section (1) or sub-section (2) of section 6A shall be liable to a penalty of twenty-five lakh rupees. (2) Any rule made under any of the provisions of this Act may provide that any contravention thereof shall be liable to a penalty of twenty-five lakh rupees. (3) Whoever, after having been punished with penalty as referred to in sub-section (1) or sub-section (2) , continues to contravene any of the provisions of this Act or rules made thereunder, shall be liable to pay a further penalty which may extend to ten lakh rupees per day for the entire duration during which the contravention continues commencing from the date of imposition of the first penalty.] [Footnotes] 1. Subs. by Act 6 of 2025, s. 8, for section 9 (w.e.f. 15-4-2025). --- Section 9A. Section 9A.Adjudication. --- 1 [ 9A. Adjudication. --- (1) The Central Government shall, by notification in the Official Gazette, make rules for providing eligibility criteria for designating an adjudicating authority and for the manner of conducting inquiry and imposing penalty under the provisions of this Act: Provided that no officer below the rank of Joint Secretary to the Government of India shall be designated as an adjudicating authority. (2) The adjudicating authority may summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document, which in his opinion may be useful for or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the person concerned has contravened the provisions of this Act or the rules made thereunder, he may determine such penalty in accordance with the provisions of this Act. (3) No penalty shall be imposed on any person under this section or any rules made thereunder without affording an opportunity of being heard.] [Footnotes] 1. Subs. by Act 6 of 2025, s. 8, for section 9 (w.e.f. 15-4-2025). --- Section 9B. Section 9B.Appeal. --- 1 [ 9B. Appeal. --- (1) Every appeal against the order of the adjudicating authority under this section shall lie with the Appellate Tribunal referred to in section 30 of the Petroleum and Natural Gas Regulatory Board Act, 2006, (19 of 2006) and the provisions contained in sections 33, 34, 35 and 36 of that Act, shall, mutatis mutandis apply, in relation to every such appeal. (2) The provisions contained in section 37 of the Petroleum and Natural Gas Regulatory Board Act, 2006, (19 of 2006) shall mutatis mutandis apply, in relation to every appeal against the order of the Appellate Tribunal referred to in sub-section (1).] [Footnotes] 1. Subs. by Act 6 of 2025, s. 8, for section 9 (w.e.f. 15-4-2025). --- Section 10. Section 10.Laying of rules and notifications. --- 1 [10. Laying of rules and notifications.-- Every rule made under this Act and every notification issued 2 [under sub-section (4) or sub-section (5) or section 6A] 3 [or section 8] shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.] [Footnotes] 1. Subs. by Act 20 of 1984, s. 3, for the original section10. 2. Subs. by Act 29 of 1998, s. 3, for "under sub-section (4) of section 6A" (w.e.f. 3-9-1998). 3. Ins. by Act 6 of 2025, s. 9 (w.e.f. 15-4-2025). --- Section 11. Section 11.Power of inspection. --- (1) For the purpose of ascertaining the position of the working, actual or prospective, of any 1 [oilfield] or abandoned 1 [oilfield] or for any other purpose mentioned in this Act or the rules made thereunder, any officer authorised by the Central Government in this behalf shall have the right to--- (a) enter and inspect any 1 [oilfield]; (b) order the production of any document, book, register or record in the possession or power of any person having the control of, or connected with, any 1 [oilfield]; (c) examine any person having the control of, or connected with, any 1 [oilfield]. (2) Any officer authorised by the Central Government under sub-section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860). [Footnotes] 1. Subs. by Act 6 of 2025, s. 10, for "mine" (w.e.f. 15-4-2025). --- Section 12. Section 12.Relaxation of rules in special cases. --- The Central Government may, if satisfied that it is in the public interest so to do, authorise in any case the granting of any 1 [petroleum lease], or the working of any 2 [oilfield] on terms and conditions different from those laid down in the rules made under sections 5 and 6. [Footnotes] 1. Subs. by Act 6 of 2025, s. 11, for "mining lease" (w.e.f. 15-4-2025). 2. Subs. by s. 11, ibid., for "mine" (w.e.f. 15-4-2025). --- Section 13. Section 13.Act to be binding on the Government. --- 1 [13. Act to be binding on the Government.-- The provisions of this Act shall be binding on the Government.] [Footnotes] 1. Subs. bythe A.O. 1950,fors.13 (w.e.f. 26-1-1950). --- Section 13A. Section 13A.Validity of leases and licenses. --- 1 [ 13A. Validity of leases and licenses. --- All mining leases and licenses granted before commencement of the Oilfields (Regulation and Development) Amendment Act, 2025, shall continue to be valid for their respective tenure subject to the terms and conditions governing the grant of such leases and licenses.] [Footnotes] 1. Ins. by Act 6 of 2025, s. 12 (w.e.f. 15-4-2025). --- Section 14. Section 14.Protection of action taken in good faith. --- No suit, prosecution or other legal proceeding whatever shall lie against any person for anything which is in good faith done or intended to be done under this Act.