Salient Features
- Separation of Operations:
- Petroleum operations are severed from mining operations.
- Definition of Mineral Oils:
- Includes naturally occurring hydrocarbons, coal bed methane, and shale gas/oil.
- Excludes coal, lignite, and helium.
- Inclusion of “Petroleum Lease”:
- A lease now encompasses prospecting, exploration, development, production, processing, and transportation of mineral oils.
- Rule-Making Powers with Central Government:
- Regulation of leases, conservation, and royalties retained with the Central Government.
- New provisions introduced for:
- Consolidation of leases.
- Common carrier use.
- Environmental safeguards.
- Dispute resolution.
- Decriminalization of the Act:
- Penal provisions replaced with monetary penalties.
- Adjudication and Appeals:
- Appeals against penalties will be heard by the Appellate Tribunal under the Petroleum and Natural Gas Regulatory Board Act, 2006.
Importance of the Amendment
- Ensures energy access, security, and affordability.
- Reduces dependency on imports.
- Attracts increased investment in the sector.
- Strengthens the enforcement mechanism.
About the Petroleum and Natural Gas Regulatory Board (PNGRB)
- Formation:
- Established under the Petroleum and Natural Gas Regulatory Board Act, 2006.
- Functions:
- Regulates refining, transportation, distribution, storage, and marketing of petroleum products and natural gas.
- Ensures competitive markets for natural gas.
- Appellate Process:
- Appeals against PNGRB decisions are addressed by the Appellate Tribunal for Electricity.
This amendment revitalizes the regulatory framework for oilfields, aligning with global standards to enhance the efficiency, sustainability, and resilience of the energy sector.
