PETROLEUM EXPLORATION LICENSE
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This indenture made this ............................... day of .................. 2003 between the Government of Mizoram (hereinafter referred to as “the State Government”, which expression shall, where the context so admits, be deemed to include its successors and assigns) of the First Part
And
Oil India Ltd., a company registered under the Companies Act, 1956 and having its Registered Office at New Delhi, and Suntera and Shivani, a company registered under the Companies Act, 1956 and having its Registered Office at Mumbai (hereinafter referred to as “the Licensee” which expression shall, where the context so admits, be deemed to include its successors and assigns) of the Second Part.
WHEREAS the Licensee has applied to the State Government, in accordance with the Petroleum and Natural Gas Rules, 1959 (hereinafter referred to as “the Rules”) made under the Oilfields (Regulation and Development) Act, 1948, for a license to prospect for petroleum and/or natural gas in the area specified in Schedule ‘A’ hereunder written and delineated in the plan hereunto annexed (hereinafter referred to as “the said area”)
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AND WHEREAS the licensee has deposited with the State Government a sum of Rs. ______ as security and Rs. ________ as Initial License Fees in respect of such license and has also paid to the State Government the sum of Rs. _________ as license fee for the first year in advance in respect of such license.
WHEREAS the State Government with the approval of the Central Government has agreed to grant the license on the terms and conditions hereinafter mentioned.
P A R T – I
In consideration of the fees, royalties, covenants and agreements hereinafter reserved and contained and on the part of the Licensee to be paid, observed and performed, the State Government with the approval of the Central Government hereby grants unto the Licensee the sole right and License for the following : -
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- To enter upon the said area as described in Schedule ‘A’ and to carry out, in addition to Geological and Geophysical surveys, information drilling and test drilling operations for petroleum.
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To carry away from the said area, not more than 18,000 litres of petroleum and 28 cubic metres of natural gas per day, as samples for experimental purposes or such additional quantities incidental to prospecting as may be produced by the Licensee in the course of prospecting operations in the said area, on payment of royalty, as hereinafter specified, at rates specified in Schedule ‘B’ hereunder written, provided that this provision shall not confer upon the License any right to use or carry away petroleum or natural gas for commercial purposes.
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Subject to the provisions of clauses 6 and 8 of Part – II hereof, for the purpose aforesaid, to clear under growth and brushwood and with the sanction of the Collector/Deputy Commissioner (hereinafter referred to as “the collector”) previously obtained in writing, to make and use any roads, drains, or water courses on the said area and, for any purpose necessary for effectively carrying on the prospecting operations and for the workmen employed therein and with the like sanction to use any water, provided always that the Licensee shall endeavor to ensure that such use shall not diminish or interface with the supply of water to which any cultivated land, village buildings or watering places for livestock has heretofore been accustomed and that no streams, springs or wells shall be fouled or polluted by such use or the prospecting operations hereby licensed but if such diminution, interference or pollution shall nevertheless occur and the Licensee shall if necessary provide an alternative supply of water at a suitable place or places and in sufficient quantity to the satisfaction of the Collector/ Deputy Commissioner.
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With the sanction of the Collector/Deputy Commissioner previously obtained in writing to erect and bring upon the said area all such structures, engines, machinery, tanks, pipe-lines, telegraphs, wireless, telephones, conveniences chattels and effects as shall be proper and necessary for effectively carrying on the prospecting operations hereby licensed or for the workmen employed therein.
Reserving, nevertheless, with the State Government full power and liberty at all times to enter into and upon and to grant or demise to any person or persons whomsoever liberty to enter into and upon the said area for all or any purposes other than those for which sole right and license are hereby expressly conferred upon the Licensee and particularly (and without in any way qualifying such general power and liberty) to make on over or through the said areas such roads, tram ways and railways as shall be considered necessary or expedient for any purpose and to obtain from and out of the said areas such stone, earth or other materials as may be necessary or requisite for making, maintaining or repairing such roads, tram ways and railways and to pass and re-pass at all times over and along such roads, tram ways and railways for all purposes and as occasion shall require causing as little interference as possible with the operations of the Licensee.
TO HOLD the said right and license unto the Licensee from the days of for the term of four years (hereafter referred to as “the term”) paying thereof annually in advance the License Fee at the rate specified in Schedule ‘C’ hereunder written for each year or portion of a year of the License for which this license is granted and also to pay royalty at the rates specified in Schedule ‘B’ hereunder written on the petroleum and natural gas won and carried away by the Licensee during the said term.
P A R T – II
COVENANTS BY THE LICENSEE
The Licensee hereby convenants with the State Government as follows : -
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To pay in advance the yearly license fee in respect of this license at the rates and time specified in schedule ‘C’ hereunder written for each year or portion of a year for which this license or any renewal thereof is granted.
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- To pay royalty to the State Government at the rates and time specified in Schedule ‘B’ hereunder written.
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(a) All license fees, royalties and other payments hereunder shall, if not paid to the State Government within the time specified for such payment, be increased by a penal rate of 200 (two hundred) basis points over the prime lending rate of State Bank of India for the delayed period.
(b) If any license fee, royalty and other payment due in respect of this license is in arrears for more than three months, the State Government, with the prior approval of the Central Government, may cancel this license and such cancellation shall be published in the Official Gazette and shall take effect from the date of such publication.
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4. (a) To maintain in good repair and condition all apparatus, appliances and wells capable of producing petroleum on the area covered by this license.
(b) To execute all prospecting operations on such area in a proper and workman like manner in accordance with such methods and practice as are customarily used in modern oil field practice and abide by all instructions, directions and orders that may be given pursuant to any rules under Chapter IV of the said Rules.
- Upon the determination of this license or upon the relinquishment of any area covered by it, to furnish to the Central Government through the State Government confidentially the complete records of all the data such as surface geological maps and sections, magnetic and gravity measurements and anomaly maps, seismic profiles, sections and structure contour maps, electrical and telluric current survey data, and other information which have a direct or indirect bearing on the petroleum and mineral possibilities in the area, collected by the Licensee or its agents or contractors.
- Recovery of helium from natural gas – (1) Nothing contained in these rules or the terms of a license or a contract will give right to a licensee to use, sell or otherwise dispose of helium which may be produced with natural gas and the licensee shall dispose off such helium in accordance with such directions as may be issued in this behalf by the Central Government or by an officer or an agency duly authorized for this purpose by the Central Government. (2) If the Central Government desires to extract helium from natural gas, the licensee, in ordered to enable the Government to install and operate equipment and facilities for carrying out helium recovery operations, shall make available to the Central Government or its nominee the area and utilities required for such operations and in such a case the licensee shall be entitled for compensation based on the internal company accounting practices to be mutually agreed between the licensee and the Central Government/its nominee.
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5. Not to work or carry on any operations hereby licensed on or under the said areas at or to any points within a distance of 50 metres from any railway line, except with the previous written permission of the Railway Administration concerned, or any building or inhabited site except with the previous written permission of the said Collector/Deputy Commissioner or any other officer authorized by the State Government in this behalf. The Railway Administration or the State Government or the said Collector/Deputy Commissioner or other officer authorized in this behalf in granting such permission may impose such conditions as it may deem fit. The said distance of 50 metres shall be measured in the case of a railway reservoir or canal horizontally from the outer toe of the bank or the outer edge of the cutting as the case may be and in the case of a building, horizontally from the plinth thereof.
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6. Not to cut or injure any tree on any unoccupied or unreserved land without the permission in writing of the proper authority, nor without such permission disturb the surface of any road, or enter on any public pleasure ground, burning or burial ground or place held sacred by any class of person, or interfere with any right of way, well or tank.
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To make reasonable satisfaction and pay such compensation as may be assessed by lawful authority in accordance with the law in force on the subject for all damage, injury, or disturbance which may be done by it in exercising of the powers granted by this license and to indemnify and keep indemnified fully and completely the State Government against all claims which may be made by any person or persons in respect of any such damage, injury or disturbance and all costs and expenses in connection therewith.
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Not to enter upon or commence prospecting in any reserved or protected forest situated upon the said area without the sanction in writing of the competent authority of the Forest Department and to observe such conditions as may be prescribed by such authority in this behalf.
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- Not to enter upon any land or in any way injure trees, crops, huts or other property without the consent of the occupier or failing such consent without the written permission of the said Collector/Deputy Commissioner.
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To also pay compensation for any damage, injury etc. done to the property of the occupier of the land or any other person.
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(a) Notwithstanding anything contained in this license, not to enter upon any Reserve Forests included in the said area without thirty days previous notice in writing to the Divisional Forest Officer Concerned. The said Divisional
Forest Officer shall take steps within thirty days either to restrict or to regulate such entry where necessary.
(b) Not to sell, cut and use any timber or trees including bamboos, canes and other forest products now standing or which hereafter may be standing upon the Reserve Forest land without the written permission of the said Divisional Forest Officer provided also that the exercise of the liberty and powers thus granted by the said Divisional Forest Officer shall also be subject to the observance of the terms and conditions of the Mizoram State Forest Regulation Act and the rules framed thereunder.
(c) The State Government in its Forest Department reserves the exclusive rights to continue enforcement of all rules and regulations of the Forest Department and to undertake any departmental operations as are usually done in Reserve Forest and also to entertain any such contracts for operation and movement of forest produces etc. as are usually done in the Reserve Forests.
(d) In no way to interfere with the activities of the Forest Department of the State Government in the Reserve Forests portion of the area for which the license is granted as well as in the un-classed State forests portion of the area wherein forest operation takes place under authority of the said Forest Department Licenses issued nor with the persons authorized by the Forest Department to carry out such works over the said area. Such operation may include operation and movement of major forest produces, minor forest produces as well elephant-hunting operations and making of roads and paths, survey and alignment, construction of building, marking of timbers, inspections etc. or any other activities as are usually done by the said Forest Department or by their authorized persons.
(e) To organize oil prospecting works in such manner as to avoid destruction of any forest growth and wherever such destruction as considered necessary and admitted by the said Forest Department to give sufficient time to the Forest Department to operate and remove the forest produce under the provisions of the licensee issued for the removal of such forest produce.
(f) In the event of the License requiring felling, cutting or removing any forest produces in the course of petroleum exploration, with previous permission of the Divisional Forest Officer to pay royalty, monopoly fees and compensation at reasonable rates fixed by the Forest Department. In cases where felling and removal of trees in
large number and/or over large areas are concerned, the Forest Department will have unfettered rights to deny such permission.
(g) To obtain written permission from the said Divisional Forest Officer in advance in the event of opening any road inside the Reserve Forests situated upon the said area.
- The Forest Department and its contractors and persons authorized by the said Forest Department shall have unrestricted rights to use the roads in the Reserve Forests made by the Licensee.
(i) The said Forest Department reserve the right to put up gates at such places is it may be necessary for control of illegal traffic and checking of forest produces whenever necessary. To abide by and ensure that the Licensees’ contractors and employees abide by the restrictions imposed by the said Forest Department at such check gates as may be necessary in the matter of movement of their vehicles.
(j) In the event of disputes arising between the Licensee and the said Divisional Forest Officer in the matter of interpretation of any of the above mentioned clauses i.e. clauses (a) to (i) or the restrictions put forward thereunder, the decision of the State Government will be final.
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As far as possible not to disturb the basti land and land under standing crops and cultivation.
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- To impose no restriction on traffic including vehicles on the roads that may be constructed by the Licensee at its own cost in so far as the operation of the License is not endangered or interfered with.
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To pay additional compensation for dwelling houses and out houses at rates to be settled by the State Government to people who will be displaced as a result of the prospecting operations of the Licensee or operations connected therewith in order to facilitate their rehabilitation.
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- Not to make or sink any new borehole or well within a horizontal distance of 50 metres from any part of the boundary of the said area which is common to the said area and to a contiguous area held under petroleum exploration license or mining lease for petroleum or natural gas by another party without the consent of such other party.
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Not to deflect any vertical boring with the intention of causing it to cross a vertical plane passing through a boundary of the said area, provided that this restriction shall not apply, firstly, if the said boundary is common boundary of two areas held under petroleum
exploration license or mining lease by the Licensee and secondly if the consent to such deflection shall have previously been obtained in writing from the holder of a petroleum exploration license or mining lease over a contiguous area to which the said boundary is common.
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Without delay to send to the Collector/Deputy Commissioner of the District in which it occurred a report of any accident causing death or serious bodily injury or seriously effecting or endangering life or property which may occur in the course of the operations under this license.
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At least once in every year and as many other times as the occasions may require will and truly to measure or weight or cause to be measured or weighted upon some part of the said area all minerals from time to time won from the said area by the Licensee which may require to be measured or weighted for the purpose of ascertaining the royalty payable under these presents. All such information and other relevant scientific information should be sent to Geology & Mining Wing, Department of Industries, Government of Mizoram which is the State Nodal Department.
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Save in the case of area over which the Licensee shall have been granted a mining lease or before the expiration or sooner determination of the license, the Licensee shall, within six months following the determination of the license or the date of abandonment of the undertaking whichever shall occur first, securely plug all bore holes and fill up or fence, all excavations that may have made in the said area, restore the surface of the land and all building thereon which may have been damaged in the course of prospecting provided that the Licensee shall not be required to restore the surface of the area or any building in respect of which full and proper compensation has already been paid under clause 7 above.
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(a) Upon determination or cancellation or relinquishment in part or in full of a license, the licensee shall deliver the area released on account of the determination or cancellation or relinquishment after restoring it in good order and condition in accordance with international practices within 6 months from the date of such determination or cancellation or relinquishment, or within such further time as the State Government may allow.
- Upon determination or cancellation or relinquishment of a license, the holder of such license shall take all necessary steps to prevent consequent hazards to human life, property, environment, marine resources or navigation, to the satisfaction of the State Government.
- The licensee shall, prior to determination or cancellation or relinquishment of licensed area, remove and dispose of any petroleum, stores, equipment, tools and machinery from such area within 6 months of handing over the area.
- If such petroleum, stores, equipment, tools, machinery and improvements are not removed or disposed off and the area restored to good order and condition within 6 months prior to the determination, relinquishment or cancellation of the license, the State Government shall proceed with the removal and disposal of such petroleum, stores, equipment, tools, machinery and restored the area at the risk of the licensee.
- The net proceeds of such sale shall be held by the State Government until applied for and obtained by the licensee.
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- Not to be controlled, permit itself to be controlled by any Trust, Syndicate, Corporation, Firm or person except with the written consent of the State Government which will obtain the sanction of the Central Government.
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Whenever the security deposit of Rs. 1,00,000/- (Rupees one lakh only) or any part thereof or any further sum hereafter deposited with the State Government in replenishment thereof shall be forfeited or applied by the State Government in pursuant to the power hereinafter declared in that behalf, forthwith to deposit with the State Government such further sum as may be sufficient with the unappropriated part thereof to bring the amount in deposit with the State Government up to the sum of Rs. 1,00,000/- (Rupees one lakh only).
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To be bound by such rules as may be made by the Central Government under section 6 of the Oilfields (Regulation and Development) Act, 1948 (Act LIII of 1948) and not to carry on operations in any way contrary to the provisions of these rules.
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- To employ Indian Nationals (particularly the local people) in its organization in preference to non-Indians whenever Indian Nationals of the requisite qualification, caliber and experience are available. The Licensee will also arrange for the training of an adequate number of Indian Nationals (particularly the local people) in India and abroad so that to the fullest extent practicable, its organization will be manned by Indians as early as possible. For this purpose the Licensee shall consult the Central Government from time to time.
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- To give the Central Government/State Government concerned all such geological and geophysical information and interpretations as the Central Government/State Government concerned may require for the purpose of training its technical staff in the task of acquiring and interpreting such information.
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Notwithstanding the terms and conditions specified herein to be prepared at all times, if so requested by the State or Central Government, to consult and agree with the State Government with the approval of the Central Government regarding the applicability to the Licensee of amendments to the said Rules.
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Within three months from the date of final determination of boundaries of the area under this license, to display notices at all conspicuous points on the area covered by the license so as to indicate its boundaries and thereafter, during the term of the license maintain such notices to the satisfaction of the State Government.
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To space oil and gas wells in accordance with instructions issued by the Central Government provided that no such wells shall be drilled at any point, within a minimum distance to be prescribed by Central Government, of any railway, pipeline or other right of way surveyed road, dwelling, industrial plant, aircraft runway, tramway, buildings used for military or public purposes, or within three kilometres of any mine, whether active or abandoned, unless the special permission of the Central Government is obtained in advance.
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Not to suspend normal drilling or producing operations, abandon an oil or gas well, recondition such a well, resume drilling operation after a previous completion, suspension or abandonment of such a well, or resume producing operations after a previous suspension without priorily giving to Central Government at least a fortnight’s notice of any or all of the aforesaid actions. Provided that if normal drilling or producing operations have to be immediately suspended for unforeseen reason, notice thereof shall be given to Central Government within 24 hours of such suspension, under intimation to the State Government.
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So far as is reasonably practicable, to collect, label and preserve for reference for a period of at least twelve months all bore-cores and characteristic samples of the strata encountered in any bore hole on the area covered by the license and samples of any petroleum or water discovered in any borehole in the said area and furnish to the Central Government detailed reports of all examinations made of such cores and samples. Such cores and samples preserved as aforesaid shall at all times be made available for examination to an agent authorized by the Central Government and may be taken for the purpose of analysis or other examination, but no information obtained as a result of such analysis shall be published without the consent of the Licensee unless the Central Government sees fit to direct otherwise.
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(i) Immediately on demand to submit to the State Government confidentially a full report of the geological data of all the minerals found during exploration of oil and/or gas and to submit without fail once a year the results of all operations,
boring and exploration to the State Government and the Central Government.
- The Licensee shall within the first 30 days of every month or within such further time as the Central Government or the State Government, as the case may be, may allow furnish or cause to be furnished, to the Central Government or the State Government, as the case may be, a full and proper return showing the quantity of all crude oil casing-head condensate and natural gas obtained during the proceeding month from the prospecting operations, conducted pursuant to the license. The monthly return required to be furnished shall be as nearly as may be, in the form specified in the Schedule, annexed to the Petroleum & Natural Gas Rules, 1959 as amended from time to time.
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32. To take all preventive measures against the hazard of fire underground and/or on the surface and to keep such equipment supplies and means to extinguish fire at all times and to pay such compensation to the third party and/or the State Government as may be determined in case of damages due to fire.
P A R T – III
POWERS OF GOVERNMENT
It is hereby agreed as follows : -
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The State Government may on written application by Licensee and if it considers that adequate reasons have been furnished and with the prior approval of the Central Government, authorize, for periods, not on any occasion exceeding six months, suspension of any or all of the terms, covenants or conditions relating to the license and, in that event, impose such conditions as the State Government may think fit for the protection of any bore holes, equipment or works on such area, or for the protection of any petroleum deposits, water or minerals in such area, or in any adjacent area, or for any other purpose whatsoever, and the licensee shall comply with such conditions as if they are incorporated in the license.
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(a) If the Licensee or its assigns at any time during the term of the license
- fails to fulfil or contravene any of the terms covenants and conditions contained therein, or
- fails to use the area covered by it, bona fide for the purposes for which it has been granted, or
- uses such area for a purpose other than that for which it has been granted, the State Government may, with the prior approval of the Central Government, where
it is satisfied that the failure, contravention or use is such as cannot be remedied, on giving thirty days notice to the Licensee, forfeit the whole or any part of the security deposit and cancel the license. Such cancellation shall be published in the Official
Gazette and shall take effect from the date of such publication. If the failure, contravention or use is of a remedial nature, the State Government shall give notice to the Licensee requiring it to remedy the same within sixty days of the receipt of the notice and informing that the penalty as aforesaid may be imposed if such remedy is not provided within such period and with the prior approval of the Central Government impose the penalty as aforesaid, if the Licensee fails to so remedy within such period.
PROVIDED THAT the failure on the part of the Licensee to fulfil any of the terms, convenants and conditions of the License shall not give the State Government any power to impose the penalty as aforesaid in so far as such failure arises from force majeure ; and if through force majeure the fulfillment of any of the terms, convenants and conditions of the license be delayed, the period of such delay shall be added to the period fixed by the license for the performance of any act. “Force majeure” includes an act of God, war, insurrection, riot, civil commotion, tide, storm, tidal wave, flood, lightning, explosion, fire, earthquake and any other happening which the Licensee could not reasonably prevent or control.
(b) The State Government may cancel the license either wholly or in part with the approval of the Central Government on the written request of the Licensee and such cancellation shall be published in the Official Gazette and shall take effect from the date of such publication ; PROVIDED THAT IN the case of a request for cancellation in part of a license, if the State Government is of opinion that survey or resurvey is necessary, such survey or resurvey shall be carried out by a mining surveyor and the Licensee shall within the period specified by the State Government pay to the State Government for such survey or resurvey such fee as the State Government determine.
- If any part of the area covered by a license is required for any public purpose during the term of license, the State Government may after the approval of the Central Government and upon one month’s notice, to the Licensee, who will be given an opportunity of being heard on the subject, cancel such license in so far as it relates to the said part of the area subject to such restrictions and conditions as it may impose and such cancellation shall be published in the Official Gazette and shall take effect from the date of such publication.
- Where the Central Government has entered into an agreement with the licensee, license shall automatically stand cancelled upon the expiry or termination of such contract.
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The State Government may, from time to time, appropriate and apply the said security deposit of Rs. 1,00,000/- or any part thereof or any further sum deposited under the Licensee’s covenant in that behalf herein before contained in or towards payment or satisfaction of any claim to compensation which may be made by any person or persons against the State Government in respect of any damage or injury done by the Licensee in exercise of any of the powers conferred by this license and or towards payment of any damages, costs and expenses which may become payable as the result of or in connection with any suits or proceedings which may be instituted against the State Government in respect of any such damage or injury and also in or towards payment of expenses of carrying out or performance of any works or matters which the Licensee shall fail to carry out or perform after the determination of this License or the abandonment of the operations hereby licensed in accordance with the covenant in that behalf herein before contained or in payment of satisfaction of any such claims, damages, costs and expenses.
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4. If any building, structures, plant, engines, machinery, implements, utensils or other property or effects or any petroleum or natural gas which ought to be removed by the Licensee from the said area in accordance with the covenant in that behalf herein before contained be not so removed within six months after notice in writing requiring their removal shall have been delivered to the Licensee by the State Government the same shall be deemed to become the property of the State Government and may be sold and disposed off for the benefit of the State Government in such manner as the State Government shall deem fit without liability to pay any compensation or to account to the Licensee in respect thereof.
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5. If any of the works or matters which in accordance with covenant in that behalf herein before contained are to be carried out or performed by the Licensee within one year after the expiration or sooner determination of this license or the abandonment of the operations hereby licensed be not so carried out or performed the State Government may cause the same to be carried out or performed and the Licensee shall pay the State Government on demand all expenses which shall be incurred in such carrying out or performance of the same.
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In the case of a national emergency in respect of petroleum, the Central Government shall at all times during such emergency have the right of pre-emption of the refined petroleum or petroleum products produced from the crude oil or natural gas where the Licensee is permitted to sell, export or dispose of it without refining within India. PROVIDED THAT the fair market price prevailing at
the time of such pre-emption shall be paid to the Licensee for petroleum or petroleum products or the crude oil or natural gas taken in pre-emption. Provided further that the Central Government shall be the sole judge as to what constitutes a national emergency in respect of petroleum and its decision in this respect shall be final.
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7. If the Central Government is satisfied after holding an inquiry that an oil or gas well is being operated in such a way that any provision of Chapter VI of the Petroleum and Natural Gas Rules, 1959 or any order of the Central Government pursuant to them has been or is being contravened, the Central Government may order that, on and after a date to be fixed by the order no production is to be permitted from the well and that it is to be shut down and kept shut down till such time as the Central Government may specify. If in the opinion of Central Government, the waste, damage to property or pollution can thereby be prevented, the Central Government may order the well to be shut down pending an inquiry as aforesaid. Provided that such inquiry shall be held within fifteen days of the making of such order.
P A R T – IV
RIGHT OF THE LICENSEE
It is hereby further agreed as follows: -
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During the subsistence of this license or of any renewal thereof the Licensee shall not assign or transfer its right, title and interest in respect of the license or in respect of the area covered by the license without the consent in writing of the Central Government being first obtained through the State Government. PROVIDED THAT in case where a Contract has been signed between the licensee and the Central Government, the transfer or the assignment, as the case may be, shall be governed by the terms and conditions of the Contract, and will be effected in the manner laid down in such Contract.
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The Licensee shall be at liberty to determine the license or relinquish any part of the area are covered by this license on giving not less than two months notice in writing to the State Government and the Central Government and upon the expiration of such notice, provided that all sums due on account of the license or the part relinquished shall have been paid, the license shall be determined in respect of the whole of the area or the part or parts so relinquished , as the case may be. If the Licensee does not desire to surrender the whole of the area, a description of the part or parts which it desires to retain shall be substituted in the instrument of license for description previously appearing therein, and the license fee payable by Licensee shall be calculated accordingly.
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Subject to compliance with the covenants of this license during the period hereby granted, the State Government, with the approval of the Central Government may grant three renewals of one year each or decline to grant even one renewal thereof without assigning any reason.
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On or before the determination of this license or renewal thereof the Licensee shall have the exclusive right to a mining lease or leases for petroleum and/or natural gas over such part of the said area as it may desire.
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If the Licensee before the determination of the period of this license or of any renewal thereof applies for the grant of a mining lease over any part of the said area the period of the petroleum exploration license shall be further extended over that part of the said area until the mining lease is granted.
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On such date, within nine calendar months after the determination of this license or of any renewal thereof, as the State Government shall elect, the amount then remaining in deposit with the State Government and not required to be applied to any of the purposes in parts – II and III of these presents mentioned shall be refunded to the Licensee or if the Licensee shall have obtained a mining lease of the said area, or any portion thereof, be retained at the credit of the Licensee’s account of the fees, rents & royalties to become payable under such lease. The amount shall in no case carry any interest whatsoever.
P A R T – V
GENERAL PROVISIONS
It is lastly agreed as follows : -
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If after receipt of an offer of compensation for any damage which is likely to arise from the proposed operations of the Licensee an occupier of the surface of any part of the said area shall refuse his consent to the exercise of the rights and powers reserved to the State Government and demised by this License the Licensee shall report the matter to the State Government and shall deposit with it the amount offered as compensation and if the State Government is satisfied that the amount of compensation is reasonable or if it is not so satisfied and the Licensee shall have deposited with it such further amount as the State Government may consider reasonable the State Government shall order the occupier to allow the Licensee to enter upon the area and carry out such operations as may be necessary for the purposes of the license. In assessing the amount of such compensation the State Government shall be guided by the principles of the Land Acquisition Act, 1894 or any statutory modification or re-enactment thereof for the time being in force.
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Any dispute (including a dispute regarding the market price referred to in rule 18 of the said Rules) between the Central/State Government and the Licensee regarding –
- any right claimed by the Licensee under the license, or
- any breach alleged to have been committed by Licensee of any of the terms, covenants or conditions of the license or any penalty proposed to be inflicted thereof, or
- the fees, royalty or rents payable under the license, or
- any other matter or thing connected with the license,
shall be settled through arbitration and conciliation proceedings under the provisions of the Arbitration and Conciliation Act, 1996 and the rules made thereunder as are applicable to such proceedings.
The venue of the arbitration shall be at Mizoram and the appropriate Court having original jurisdiction shall have jurisdiction over the matter.
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Every notice required to be given to the Licensee shall be given in writing to such person as the Licensee may appoint for the purpose of receiving such notice or if no such appointment is made then, the notice shall be sent to the Licensee by prepaid registered post addressed to it at the address shown in it is application for the License or at such other addresses in India as it may designate from time to time and every such service shall be deemed to be proper and valid service upon the Licensee and shall not be questioned or challenged by it.
IN WITNESS WHEREOF these presents have been executed in the manner hereunder appearing the day, month and year first above written.
S C H E D U L E – A
THE AREA COVERED BY THE LICENSE
The area in Northern Mizoram comprising 5340 square kilometres which falls in Aizawl District, Mamit District and Kolasib District are delineated in the map/sketch plan attached hereto and more fully described in the annexure hereto
S C H E D U L E – B
ROYALTY
The Licensee shall pay to the State Government on demand half yearly on the 30th June and 31st December each year a royalty as maybe fixed by the Central Government from time to time for crude oil and casing head condensate and 10% of well head value of natural gas obtained from operations conducted pursuant to the license by depositing to the Government of Mizoram by Demand Draft. The amount of royalty payable at this stage is nil.
S C H E D U L E – C
ANNUAL LICENSE FEE
The Licensee shall pay license fee annually in advance at the following rates per square kilometres or part thereof.
- Rs. 50/- for the first year of the license .
- Rs. 100/- for the 2nd year of the license.
- Rs. 500/- for the 3rd year of the license.
- Rs. 700/- for the 4th year of the license.
(v) Rs. 1000/- for the each subsequent year of renewal.
The aforesaid amounts shall be deposited by the Licensee to the Government of Mizoram by way of Demand Draft.
Signed by (YOGARAJA)
Secretary to the Govt. of Mizoram, Department of Industries.
for and on behalf of the Government of Mizoram
In the presence of :
i) Name : - (Dr. H. LALLENMAWIA)
- Address : - Joint Director, Geology & Mining Wing, Govt. of Mizoram
Signed by ............................................................................................
for and on behalf of (Licensee), Oil India Ltd.
In the presence of :
i) Name : - ..................................................................................
ii) Address : - ...............................................................................
................................................................................
Signed by ....................................................................................................
for and on behalf of (Licensee), Suntera.
In the presence of :
i) Name : - ..................................................................................
ii) Address : - ...............................................................................
................................................................................
Signed by ....................................................................................................
for and on behalf of (Licensee), Shivani.
In the presence of :
i) Name : - ..................................................................................
ii) Address : - ...............................................................................
................................................................................
Signed by ....................................................................................................
for and on behalf of (Licensee), REL.
In the presence of :
i) Name : - ..................................................................................
ii) Address : - ...............................................................................
................................................................................
