First Previous (Chapter VIII. Provisions ancillary to Chapters VI and VII.) Next (PART III. Amendment of the Minerals Development Act, 1940.)

7 1960

PETROLEUM AND OTHER MINERALS DEVELOPMENT ACT, 1960

Chapter IX.

Miscellaneous and General.

Provisions in relation to petroleum operations.

52. —(1) (a) Regulations may provide for all or any of the following matters—

(i) the siting and spacing of petroleum wells,

(ii) safety measures in relation to petroleum operations,

(iii) restrictions on the production of petroleum from boreholes commenced or completed nearer the boundaries of land to the petroleum under which a petroleum lease applies than the distance specified in the regulations,

(iv) the conservation of petroleum,

(v) restrictions on the disposal of water and waste products,

(vi) the blocking of abandoned boreholes,

(vii) the measurement of petroleum,

(viii) such other matters in relation to petroleum operations as the Minister thinks necessary or expedient to provide for.

(b) If any person (being the licensee under a licence granted under this Part or the lessee under a petroleum lease) contravenes (by act or omission) any regulation made under this subsection, such person shall be guilty of an offence under this subsection.

(2) (a) If it appears to the Minister that a petroleum operation is being conducted in such a manner (whether by act or omission) as to cause loss, contamination, deterioration or misuse of petroleum products or other minerals which would not normally occur if the operation were conducted in accordance with good oilfield practice, then, he may serve by registered post on the person conducting the operation a notice requiring him to take, within a specified time, such remedial action as will prevent such loss, contamination, deterioration or misuse occurring.

(b) If it appears to the Minister that a petroleum operation is being conducted in such a manner (whether by act or omission) as to cause or to be likely to cause unnecessary damage, then, he may serve by registered post on the person conducting the operation, a notice requiring him to take, within a specified time, such remedial action as will prevent such damage occurring.

(c) Where a notice is served under paragraph (a) or (b) of this subsection and the person on whom the notice is served (in this paragraph referred to as the defaulter) does not comply with the notice, the following provisions shall have effect—

(i) the defaulter shall be guilty of an offence under this subsection,

(ii) the Minister may (whether proceedings have or have not been taken against the defaulter under sub-paragraph (i) of this paragraph) take such remedial action as was required by the notice to be taken by the defaulter, and may recover any expenses incurred by him in doing so from the defaulter as a simple contract debt in any court of competent jurisdiction.

(d) Where the Minister is entitled under subparagraph (ii) of paragraph (c) of this subsection to recover any expenses, a certificate sealed with the official seal of the Minister and certifying the amount thereof shall be prima facie evidence of the amount of such expenses.

(3) Every person guilty of an offence under subsection (1) or (2) of this section shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds, together with, in the case of a continuing offence, a further fine not exceeding one hundred pounds for every day on which the offence is continued.

(4) Where the same set of facts constitutes an offence under both subsection (1) and subsection (2) of this section and the offender is charged with both offences, the offender shall be liable to be punished for one of the offences only.

Royalty rents for petroleum acquired under the Mines and Minerals Act, 1931, and the Minerals Development Act, 1940.

53. —Where—

(a) a royalty rent has been fixed, by an award made under the Mines and Minerals Act, 1931 or by an agreement made under that Act, as compensation for petroleum acquired under that Act, or

(b) a royalty rent has been fixed, by an award made under the Minerals Development Act, 1940 or by an agreement made under that Act, as compensation for petroleum acquired under that Act,

the said royalty rent, in respect of so much if any of that petroleum as is brought to the surface at a petroleum well within the appointed area in relation to that petroleum well (as defined by subsection (1) of section 33 of this Act), shall, in lieu of being at the rate fixed by the relevant award or agreement, be at a rate which bears to the rate fixed by the relevant award or agreement the same proportion as that part of the area to which the relevant award or agreement relates and which is inside the said appointed area bears to the said appointed area.

Right to drill for and take away petroleum not to be a rateable hereditament.

54. —(1) In this section, “oil pool” means an underground natural reservoir containing or appearing to contain an accumulation of petroleum separated or appearing to be separated from any other such reservoir or accumulation in the general geological structure.

(2) For the purposes of the Valuation Acts, the right to drill for and take away petroleum shall be deemed not to be a rateable hereditament in relation to a particular oil pool until the expiration of twenty years from the date on which petroleum was first produced from that oil pool.

Payments to lessees under petroleum leases.

55. —If the total amount paid by the lessee under a petroleum lease as such lessee in respect of rent, royalties, income-tax, sur-tax, corporation profits tax and rates for any period exceeds such amount as the Minister, with the consent of the Minister for Finance, may determine, the Minister, with the consent of the Minister for Finance, may, out of moneys provided by the Oireachtas, make to the lessee a payment equal to the excess.

Minister to be given notice of sinking of shafts or boreholes.

56. —(1) Where a person proposes, for the purpose of getting petroleum, to sink a shaft or borehole intended to reach a depth of more than twenty feet below the surface, he shall before commencing such sinking, give to the Minister fourteen days' notice of his intention to do so or such shorter notice as the Minister may permit.

(2) Every person who, for the purpose of searching for or getting petroleum, sinks a shaft or borehole intended to reach a depth of more than twenty feet below the surface shall keep a journal thereof and shall retain for such period (not more than three months) as the Minister may direct such specimens of the strata passed through as may have been obtained in the course of the sinking thereof, either as cores or fragments.

(3) Every person who keeps in pursuance of subsection (2) of this section a journal of a shaft or a borehole shall, if so requested by the Minister, furnish to him a copy of the journal and a site map, which site map shall be returned by the Minister.

(4) An inspector shall be entitled at all reasonable times to do all or any of the following things, that is to say:—

(a) to have free access to any such shaft, borehole or core as aforesaid;

(b) to inspect and take copies of journals of such shafts or boreholes;

(c) to inspect all specimens so obtained and kept;

(d) to take representative samples of any such specimens or cores.

(5) If any person sinking any such shaft or borehole as aforesaid gives notice in writing to the Minister requesting him to treat as confidential any information about such shaft or borehole which was furnished by that person to the Minister, the Minister shall not, during the period of five years after the information is furnished, disclose such information to any person (not being an officer of the Minister) except with the consent of the person who furnished the information.

(6) If any person sinking any shaft or borehole—

(a) fails to comply with the obligations imposed by this section, or

(b) obstructs or impedes an inspector in the exercise of any of the powers conferred on him by this section,

such person shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding fifty pounds.

(7) In this section, the word “inspector” means a person appointed in writing (either generally or for a particular occasion) by the Minister to be an inspector for the purposes of this section.

Laying of half-yearly reports before Houses of the Oireachtas.

57. —As soon as may be after every 30th day of June and every 31st day of December, the Minister shall cause to be laid before each House of the Oireachtas a half-yearly report showing, in respect of the period of six months ending on such 30th day of June or such 31st day of December, all of the following matters, that is to say:—

(a) particulars of all petroleum leases, licences and working facilities permits made or granted by him under this Part and for the time being current;

(b) the total amount of all moneys collected by the Minister, either by way of fine or lump sum payment or by way of rent, under or by virtue of any such lease, licence or permit;

(c) any other matter relating to petroleum or to the development and working of petroleum which the Minister thinks proper to include in such report.

Disposal of moneys received as consideration.

58. —All moneys received by the Minister (whether in the nature of a fine or lump sum, or in the nature of rent or other periodical payment) as consideration for any sale, lease, licence or permit made or granted by him under this Part or as compensation under section 28 of this Act, shall, as and when received, be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance shall direct.

Collection and disposal of fees.

59. —(1) All fees payable under this Part, whether to the Minister or the Board, shall be collected and taken in such manner as the Minister for Finance shall from time to time direct and shall be paid into or disposed of for the benefit of the Exchequer in accordance with the directions of the Minister for Finance.

(2) The Public Offices Fees Act, 1879, shall not apply in respect of any fees payable under this Part.

Regulations in relation to applications for licences under Part II, fees thereon, and size and shape of areas for which those licences may be granted.

60. —Regulations may provide for all or any of the following matters—

(a) the manner in which and the persons by whom application for licences under this Part may be made,

(b) the fees to be paid on any of those applications,

(c) the conditions to be complied with by applicants for those licences,

(d) the furnishing by every applicant for any of those licences of evidence as to his character, financial standing and technical qualifications and the giving by him of security for the fulfilment of his obligations under the licence,

(e) the size and shape of areas for which those licences may be granted.

General provisions as to regulations.

61. —(1) The Minister may make regulations—

(a) for any purpose for which regulations are provided for by any of the provisions of this Part, and

(b) for prescribing any matter or thing referred to in this Part as prescribed.

(2) Where the Minister proposes to make any regulation under this Part, he shall before doing so—

(a) cause a draft of the proposed regulation to be made,

(b) publish in one or more newspapers circulating in the State, a notice which shall state—

(i) that a draft of the proposed regulation has been prepared and may be inspected at the office of the Minister in Dublin at specified times,

(ii) the provision of this Act under which it is proposed to make the proposed regulation,

(iii) that the Minister will consider any representations in relation to the proposed regulation which are made to him not later than such date as the Minister thinks proper and specifies in the notice.

(3) Every regulation made under this Part shall be laid before each House of the Oireachtas as soon as may be after it is made and if a resolution annulling such regulation is passed by either such House within the next subsequent twenty-one days on which such House has sat after such regulation is laid before it, such regulation shall be annulled accordingly but without prejudice to the validity of anything previously done under such regulation.

Prosecution of offences.

62. —Any offence under any section contained in this Part may be prosecuted by the Minister.

Expenses.

63. —The expenses incurred by the Minister in the administration of this Part shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

Repeal of Petroleum (Production) Act, 1918.

64. —The Petroleum (Production) Act, 1918, is hereby repealed.

Saving for powers and duties of the Revenue Commissioners under the enactments relating to customs and excise.

65. —The provisions of this Part of this Act shall be without prejudice to the powers and duties of the Revenue Commissioners under any enactment in force, whether passed before or after this Act, for the management, collection or protection of the revenue of customs and excise.

Deductions from compensation of debts due to the State.

66. —Where the amount of any compensation which is payable under this Act by the Minister to any person is determined by an award, and a debt is due and owing by that person to any Minister of State or to the Central Fund, the Minister may deduct the amount of the debt from such compensation, and may direct that the amount so deducted be (as the case may require) either paid to the appropriate Minister of State or paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance may direct.