Nagaland · 1993 · Act 1
The Nagaland (Ownership & Transfer of Land and its Resources Act,1990
In forceFull text· GEOLOGY & MINING
This Act is not split into sections here yet, so this is the full text read from its official PDF. Older scans can carry reading errors: check the PDF before you quote it, and for tables and schedules.
THE NAGALAND OWNERSHIP AND TRANSFER OF LAND AND ITS
RESOURCES ACT, 1990
(THE NAGALAND ACT NO. 1 OF 1993) Received the assent of the Governor of Nagaland on 27-5-93 and published in
the Nagaland Gazette extraordinary Dated 6th July, 1993,
An
Act.
to provide, in the public interest, for the ownership and transfer of land and its
resources in the State of Nagaland, for the imposition of tax on mineral rights, for the
further amendment of law relating to acquisition of land and its resources in
Nagaland, and for matters connected therewith or incidental thereto.
WHEREAS by virtue of the provisions of Clause (1) (a) (iv) of Article 371-A of the
constitution, no Act of Parliament in respect of the ownership and transfer of land and
its resources shall apply to the State of Nagaland unless the Legislative Assembly of
Nagaland, by a resolution, so decides
AND WHEREAS no such resolution has been passed by the Legislative Assembly of
Nagaland
AND WHEREAS in the absence of any such resolution, it has become necessary for
the Legislative Assembly of Nagaland to regulate by law, the ownership and transfer
of land and its resources in the State of Nagaland,
IT IS, THEREFORE, enacted by the Legislative Assembly of the State of Nagaland
in the Forty-first Year of the Republic of India as follows:
CHAPTER 1
PRELIMINARY
1. (1) This Act may be called the Nagaland (Ownership and Transfer of Land and its
Resources) Act, 1990.
(2) It extends to the whole of the State of Nagaland.
(3) Sections 4, 10, 11, 16, 20, 60, 72, to 76, (both inclusive) and 87 shall come
into force on the appointed day and the remaining provisions of this Act shall
be deemed always to have come into force on the 1st day of December, 1963
that is to say, the date on which the Constitution (Thirteenth Amendment) Act,
1963 came into force.
Definitions 2. In this Act, unless the context otherwise requires,
(a) “appointed day” in relation to any provision of this Act, means such day as
the State Government, by notification published in the Official Gazette,
appoint in relation to that provision, and different dates may be appointed for
different provisions of this Act, and any reference in any provision of this Act
to the appointed day shall be construed as a reference to the commencement
of that provision;
(b) “drilling operations” means any operations, whether by drilling or otherwise,
for the purpose of locating or proving oil-field or other sources of mineral
deposits;
(c) “Government company” means any company in which not less then fifty-one
percent of the paid-up share capital is held by the Central Government or any
State Government or Governments or partly by the Central Government and
partly by one or more State Governments and includes a company which is a
subsidiary of a Government company as so defined;
(d) “land and its resources” means advantages derived from the surface of the
land and all that is below it and which is valuable or is a source of money or
income, and includes:-
(i) minerals,
(ii) mineral oils, petroleum and petroleum products (including liquid
petroleum gas) and
(iii) every other product of mines including forest and forest products.
(e) “minerals” means all substances which can be obtained from the earth by
mining, digging, drilling, dredging hydraulicing, quarrying or by any other
operation, and includes mineral oils (which in turn include crude oil, natural
gas and petroleum);
(f) “mining lease” means a lease granted for the purpose of undertaking mining
operations, and includes a sub-lease granted for all or any of such purposes;
(g) “mining operations” means any operation undertaken for the purpose of
winning any mineral.
(h) “minor minerals” means building stones, gravel, ordinary clay, ordinary sand
other than sand used for any of the prescribed purposes, and includes any
other mineral which the State Government may, by notification, declare to be
a minor mineral,
(i) “motor conveyance” means any vehicle, vessel or aircraft for the conveyance
of human beings, other animals or goods by land, water or air in which crude
or mineral oils or natural gas or any other source of energy is used to generate
the motive power;
(j) “notification” means a notification published in the Official Gazette;
(k) “oil field” means any area where any operation for the purpose of obtaining
natural gas or petroleum, or both, crude oil, partially refined oil and any of
the products of petroleum in liquid form or solid State is be, or is to being
carried on;
(l) “Petroleum” means any liquid hydrocarbon or mixture of hydrocarbons, and
any inflammable mixture liquid, viscous or solid, containing any
hydrocarbon;
(m) “Prescribed” means prescribed by rules made under this Act;
(n) “Prospecting licence” means a licence granted under this Act for carrying out
prospecting operations in the State for the purpose of locating or proving die
existence of any mineral, oil-field or other source of minerals;
(o) “Prospecting operations” means any operations (including drilling)
undertaken for the Purpose of exploring, locating or proving the existence of
any mineral deposit or oil-field or other source of minerals;
(p) “State” means the State of Nagaland.
(q) “to transport minerals” means to move minerals from one place in the State to
another place, whether, within or outside the State, by any means whatsoever,
and includes movement from one place in the State to another place in the
state across a territory which is not a part of the State;
(r) “to store minerals” means to keep any mineral in one or more places in the
State but does not include any detention happening during the ordinary
course of transport;
(s) “to import minerals” means to bring any mineral into the State by land, air,
pipeline or otherwise;
Central Act 35 of 1952 (t) the expressions “mine”, “minerals” and “owner” have the meanings,
respectively, assigned to them in the Mines Act, 1952.
CHAPTER II
GENER&L RESTRICTIONS ON UNDERTAKING, PROSPECTING
AND MINING OPERATIONS
Prospecting or mining operations to be under licence or lease 3. (1) No person shall undertake any prospecting or mining operations in any area in
the State except under, and in accordance with, the terms and conditions of a
prospecting licence or, as the case may be, a mining lease granted under this
Act and the rules made thereunder
Provided that nothing in this Subsection shah apply to any prospecting operations
undertaken by the Geological Survey of India, Bureau of Mines, Atomic Minerals
Division of the Department of Atomic Energy of the Central Government, directorate of
Mining and Geology of the State Government by whatever name called or a Government
company or any other authority specified under this Act;
(2) No Prospecting licence or mining lease shall be granted otherwise than in
accordance with the provisions of this Act and the rules made thereunder;
(3) The holder of a prospecting licence or a mining lease, whether granted under
sub-section (i) of this section or continued under Sub-section 4, shall have,
while carrying on such prospecting or mining operations, the same powers,
and shall be subject to the same obligations, conditions and restrictions as the
authority specified under Section 21 may exercise and be subject to the
provisions of the said Section 21, and the provisions of the said Section except
Sub-section (6) thereof shall apply to such holder of prospecting licence or
mining lease to the same extent as they apply to the specified authority and for
this purpose, reference in the said Section 21 to the “specified authority” shall
be construed as references to such holder of prospecting licence or mining
lease;
Existing prospecting licences and mining Leases and rights acquired or liability
incurred thereunder to continue 4. (1) Every prospecting licence or mining lease granted before the appointed day
under any Act of Parliament and the rules made thereunder, and in force
immediately before the appointed day, shall continue to be in force until the
expiry of the period of validity or termination thereof, whichever is earlier, as
if such licence or mining lease were granted under the corresponding
provisions of this Act and the rules made thereunder.
(2) Every prospecting licence or mining lease which continues to be in force by
virtue of the provisions of Sub-section (1), shall be held under the same terms,
conditions and restrictions on which they were held immediately before the
appointed day as if such terms, conditions and restrictions were imposed by or
under the corresponding provisions of this Act or the rules made there under,
and every inquiry instituted, right acquired or liability incurred, immediately
before the appointed day may be continued, enforced or imposed, as the case
may be, as if such inquiry were instituted, rights were acquired or liability
were incurred under the corresponding provisions of this Act and the rules
made there under :
Provided that no person shall be subjected to a penalty greater than that which might have
been ifliced under the Act of Parliament and the rules made there under as in force at the
time of the commission of the offence.
Termination of prospecting licence or mining lease 5. (1) Where the State Government is of opinion that it is expedient in the interest of
regulation of mines and mineral development, preservation of natural
environment, control of floods, prevention of pollution or to avoid danger to
public health or communication or to ensure safety of buildings, monuments
or other structures or for the conservation of mineral resources or for safety in
mines, or for such other purposes as the State Government may think fit, it is
necessary in the public interest so to do in respect of any area within the State,
it may make an order making a premature termination of such prospecting
licence or mining lease with respect to such area or part thereof, and granting a
fresh prospecting license or mining lease in respect of such area in favour of
such Government company or corporation owned or controlled by
Government as it may think fit :
Provided that no such termination shall be made after giving to the holder of such
prospecting licence or the lease of such mining lease a reasonable opportunity of being
heard.
(2) Where the holder of a prospecting licence or mining lease fails to undertake
prospecting or mining operations for a period of one year from the date of the
issue of the licence or, as the case may be, lease, or having commenced
prospecting or mining operations, has discontinued the same for a period of
one year, the prospecting licence or the mining lease, as the case may be, shall
lapse on the expiry of the period of one year from the date for issue or as the
case may be, the discontinuance of the prospecting or mining operations :
Provided that the State Government may, on an application made by the holder of such
licence or lease before the expiry of the said period of one year, and on being satisfied that
it will not be possible for the holder of such licence or lease to undertake prospecting or
mining operations or to continue such operations for reasons beyond his control, make an
order, subject to such conditions as may be prescribed, to the effect that the said licence or
lease shall not lapse.
(3) Where a prospecting licence or mining lease has lapsed under Sub-section (2)
the State Government may, on an application made to it by the, holder of such
licence or lease, submitted within a period of six months from the date of its
lapse and on being satisfied that such non-commencement or discontinuance
was due to reasons beyond the control of the holder of such licence or lease,
revive the licence or lease, as the case may be, from such prospective or
retrospective date as it thinks fit but not earlier than the date of lapse of the
licence or lease :
Provided that no licence or lease shall be revived under this Sub-section for more than
twice during the entire period of the licence or lease, as the case may be.
Restrictions on the grant of prospecting licence or mining lease 6. (1) No prospecting licence or mining lease shall be granted to any person unless
he-
(a) holds a certificate of approval in the prescribed form from the State
Government,
(b) satisfies such other conditions as may be prescribed.
Explanation : For the purpose of this Sub-section, a person shall be deemed to hold a
certificate of approval notwithstanding that at the relevant time his certificate of approval has
expired, if an application for its renewal is pending at that time.
(2) No prospecting licence or mining lease shall be granted to any person who is
not an Indian national.
Explanation : For the purpose of this Sub-section, a person shall he deemed to be an Indian
national,
Central Act 1 of 1956 (a) in the case of a public company as defined in the Companies Act, 1956,
only if a majority of the directors of the company are citizens of India and
not less than fifty-one percent of the share capital thereof is held by
persons who are either citizens of India or companies as defined in the
said Act:
(b) in the case of a private company as defined in said Act, only if all the
members of the company are citizens of India;
(c) in the case of a firm or other association of individuals, only if the
partners or members of the firm or association are citizens of India; and
(d) in the case of an individual, if he is a citizen of India,
(3) No prospecting licence or mining lease shall be granted unless the State
Government is satisfied that —.
(a) there is evidence to show that the area for which prospecting licence or
lease has been applied for has been prospected earlier and the existence of
mineral prospects therein has been established :
Provided that nothing in this Clause shall apply to any area if such area has already been
prospected by a Department or an agency of the Government and the existence of mineral
contents there has been established;
(b) there is a mining plan duly approved by the State Government for the
development of mineral deposits in the area concerned.
Maximum area for which a prospecting licence or a mining lease can be granted 7. (1) No person shall acquire in the State in respect of any mineral or prescribed
group of associated minerals
(a) One or more prospecting licences covering a total area of more than
twenty-five square kilometers in the case of minerals (other than mineral
oils) and two hundred and twenty-five square kilometers in the case of
mineral oils;
(b) One more mining lease covering a total area of not more than ten square
kilometers, in case of all minerals (except mineral oil) and seventy five
square kilometers in case of mineral oils:
Provided that if the State Government is of opinion that in the interest of the development
of any mineral, it is necessary so to do, it may, for reasons to be recorded by it in writing,
permit any person to acquire one or more prospecting licences or mining leases covering
an area in excess of the aforesaid total area;
(c) Any prospecting licence or mining lease in respect of an area which is not
compact or contiguous;
Provided that if the State Government is of opinion that in the interest, of the development
of any mineral, it is necessary so to do, it may, for reasons to be recorded by it in writing,
permit any person to acquire a prospecting licence or mining lease in relation to any area
which is not compact or contiguous.
(2) For the purpose of this Section, a person acquiring by, or in the name of
another person, a prospecting licence or mining lease which is intended of for
himself shall be deemed to be acquiring it himself.
(3) For the purpose of determining the total area referred to in Sub-section (1), the
area held under a prospecting licence or mining lease by a person as a member
of a co-operative society, company or other corporation, or a partner of a firm,
shall be deducted from the area refereed to in Subsection (1) so that the sum
total of area held by such person, under a prospecting licence or a mining
lease, whether as such member or partner, or individually, may not in any
case, exceed the total area specified in Sub-section (1).
Periods for which prospecting licence may be granted or renewed 8. (1) The period for which a prospecting licence may he grants shall not -
(i) in the case of mica, exceed two years; and
(ii) in the case of any other mineral, exceed four years.
(2) If the State Government is satisfied that longer period is required, in the public
interest, to enable the licencees to complete prospecting operations it may
renew a prospecting licence for a further period of one year at a time, but such
further period shall not exceed four years in the aggregate.
Periods for which mining leases may be granted or renewed 9. (1) The period for which a mining lease may be granted shall not exceed twenty
years.
(2) A mining lease may be renewed for two periods but each of such period shall
not exceed ten years
(3) Notwithstanding anything contained in Sub-section (2), if the State
Government is of opinion that in the interest of mineral development, it is
necessary so to do in the public interest, it may, for reasons to be recorded by
it in writing, authorize renewal of a mining lease for a further period or
periods not exceeding in the each case the period or periods not exceeding in
each case the period for which the mining lease was originally granted.
Royalties in respect of mining leases 10. (1) The holder of a mining lease granted, or continue under Section 4, on or after
the appointed day shall, notwithstanding anything contained in the instrument
of lease, pay to the State Government royalty in respect of any mineral
removed or consumed by him or by his agent, manager, employee, contractor
or sub lease from the leased area at the rate for the time specified in the First
Schedule in respect of that mineral.
(2) Notwithstanding anything contained in Sub-section (1) the holder of a mining
lease, whether granted before or after the appointed day, shall not be 1iable to
pay any royalty in respect of any coal consumed by workman engaged in
acolliery, provided that such consumption by the workman does not exceed
one-third of a tone per month :
Provided further that no royalty shall be payable in respect of any crude oil, casing head
condensate as natural gas which is unavoidably lost or returned to the reservoir or is used
for operations relating to the production of petroleum or natural gas or both.
(3) The State Government may, by notification, amend the First Schedule so as to
enhance or reduce the rate at which royalty shall be payable in respect of any
mineral with effect from such date as may be specified in the notification:
Provided that the State Government shall not enhance the rate of royalty in respect of any
mineral more then once during any period of two years.
Dead rent to be paid by leases
11. (1) The holder of a mining lease granted or continued under Section 4, on or after
the appointed day shall, notwithstanding anything contained in the instrument
of lease, pay to the State Government dead rent at such rates as may be
specified for the time being in the Second Schedule, for all the areas of the
State included in the instrument of lease.
(2) The State Government may, by notification, amend the Second Schedule so as
to enhance or reduce the rate at which dead rent shall be payable, in respect of
any area covered by a mining lease and such enhancement or reduction shall
take effect from such date as may be specified in the notification.
Provided that the State Government shall not enhance the rate of dead rent in respect of
any such area more than once during any period to two years.
CHAPTER III
PROCEDURE FOR OBTAINING PROSPECTING LICENCES OR
MINING LEASES IN RESPECT OF LAND
Application for prospecting licence or mining lease 12. (1) An application for a prospecting licence or mining lease in respect of any land
within the State in which minerals vest in the State Government shall be made
to the State Government in the prescribed from and shall be accompanied by
the prescribed fee.
(2) Where an application received under Sub-section (1) there shall be sent to the
applicant an acknowledgement of its receipt within the prescribed time in the
prescribed form;
(3) On receipt of an application under this Section, the State Government may
having regard to the provisions of this Act and the rules made thereunder,
grant or refuse to grant the licence or lease
Provided that no such refusal shall be made except after giving to the applicant a
reasonable opportunity of being heard.
Preferential rights of certain persons 13. (1) Where prospecting licence has been granted in respect of any land within the
State, the holder of the licence shall have a preferential right for obtaining a
mining lease in respect of that land over any other person:
Provided that the State Government is satisfied that the licencee had not committed any
breach of the terms and conditions of the prospecting licence and is otherwise a fit person
for being granted the mining lease.
(2) Subject to the provisions of Sub-section (1), where two or more persons have
applied for prospecting licence or a mining lease in respect of the same land,
the applicant whose application was received earlier shall have a preferential
right for the grant of the licence or lease, as the case may be, over the
applicant whose application was received later:
Provided that where any such application is received on the same day, the State
Government may, after taking into consideration the matters specified in Sub-section(3),
grant the prospecting licence or mining lease, as the case may be, to such one of the
applicants as it may deem fit.
(3) The matters referred to in Sub-section (2) are the following:
(a) any special knowledge of, or experience in, prospecting operations or
mining operations, as the case may be, possessed by the applicant;
(b) The financial resources of the applicant;
(c) The nature and quality of the technical staff employed or to be employed,
by the applicant;
(d) Such other matters as may be prescribed.
(4) Notwithstanding anything contained in Sub-section (2) but subject to the
provisions of Sub-section (1), the State Government may, for any specified
reasons to be recorded by it in writing, grant a prospecting licence or a mining,
grant a prospecting licence or a mining lease to an applicant whose application
was received later in preference to an applicant whose application was
received earlier.
Register of prospecting licences and mining leases 14. (1) The State Government shall cause to be maintained, in the prescribed form;
(a) a register of applications for prospecting licences;
(b) a register of applications for mining leases;
(c) a register of applications for prosecuting leases;
(d) a register of mining leases.
(2) Every such register shall be open to inspection by any person on payment of
such fee as may be prescribed.
CHATER IV
RULES FOR REGULATING THE GRANT OF
PROSPECTING LICENCES AND MINING LEASES
Power of State Government to make rules in respect of minerals 15. (1) The State Government may by notification, make rules regulating the grant of
prospecting licences and mining leases in respect of minerals and for purposes
connected therewith.
(2) In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for au or any of the following matters namely:
(a) the persons by whom and the manner in which applications for
prospecting licence, quarry lease, mining lease or other concessions may
be made and the fees to be paid therefore;
(b) the time within which and the form in which acknowledgement of the
receipt of any such application may be sent;
(c) the matters which may be considered where applications in respect of the
same land are received within the same day;
(d) the persons to whom certificates of approval may be granted, the form of
such certificate and the fee payable for the grant or renewal of such
certificate;
(e) the terms on which, and tile conditions subject to which and the authority
by which prospecting licences, quarry leases, mining leases or other
mineral concessions may he granted or renewed in respect of land of
which minerals vest in the State Government;
(f) the procedure for obtaining prospecting licences, quarry leases, mining
leases or other mineral concessions;
(g) the facilities to be afforded by holders of quarry leases, mining leases or
other mineral concessions to persons deputed by the Government for the
purpose of undertaking research or training in matters relating to mining
operation;
(h) the fixing and collection of rent, royalty, cess, dead rent, fines or other
charges and the time within which and the manner in which these shall be
payable;
(i) the manner in which right of any owner of land may he protected
(whether by way of payment of compensation or otherwise) in cases
where any owner is prejudicially affected by reason or any prospecting or
mining operations; and the person by whom and the manner in which
such protections shall, be made, or, as the case may be, the compensation
shall be paid, and in the event of any dispute as to such protective work or
as to the amount or such compensation, the authority by whom such
disputes shall he settled;
(j) the manner, in which rehabilitation of flora and other vegetation, such as
trees, shrubs and the like, destroyed by reasons of any prospecting,
quarrying or mining operations shall he made in the same area or any
other area selected by the State Government (whether by way of
reimbursement of the cost to rehabilitation or otherwise) by the person
holding the prospecting licence, quarrying or mining lease;
(k) the construction, maintenances and use of road, transmission lines,
tramways, railways, aerial, ropeways, pipelines and the making of
passage for water for mining purposes on any land comprised in a quarry
or mining lease or other mineral concession;
(l) the form of registers to be maintained under this Act;
(m) the reports and Statements to be submitted by holders of prospecting
licences, quarry or mining leases or other mineral concessions and the
authority to which such reports and Statements shall be submitted;
(n) the period within which and the manner in which and the authority to
which appeal or revision of any order passed by any authority under these
rules may be made, the fees to be paid therefore, and the powers of the
appellate and revisional authority; and
(o) any other matter which is to be, or may be, prescribed.
Sections 3 to 15 not to apply to minor minerals 16. The provisions of Sections 3 to 15 (both inclusive) shall not apply to quarry
leases, mining leases or other mining concessions in respect of minor minerals.
Power of State Government to make rules in respect of minor minerals 17. (1) The State Government may, by notification, make rules for regulating the
grant of quarry leases or other mining concessions in respect of minor
minerals and for purposes connected therewith.
(2) Until rules are made under Sub-section (1), the State Government may,
declare by notification, that the rules made by such State Government as is
specified in the notification, regulating the grant of quarry leases, mining
leases or other minerals concessions in respect of minor minerals which were
in force immediately before the appointed day, shall continue to be in force.
CHAPTER V
SPECIAL POWERS OF STATE GOVERNMENT TO UNDERTAKE
PROSPECTING OR MINING OPERATION IN CERTAIN CASES
Special power of State Government to undertake prospecting or mining operation in
any land within the State 18. (1) The provisions of this section shall apply to land within the State.
(2) Notwithstanding anything contained in this Act, the State Government may
undertake prospecting or mining operations in any area not already held under
any prospecting licence or mining lease, and where it proposes to do so, it
shall, by notification,
(a) specify the boundaries of such areas;
(b) State whether prospecting or mining operations will be carried out in the
areas; and
(c) specify the mineral or minerals in respect of which such operations will
be carried out.
(3) The State Government may, with a view to enabling it to exercise the powers
conferred on it by Subsection (2), by notification, declare that no prospecting
licence or mining lease shall be granted in respect of any land specified in the
notification.
Power of State Government to make reservation to area for conservation etc. 19. (1) The State Government may, if it is of opinion that with a view to conserving
any mineral it is necessary, in the public interest, so to do, reserve any area
which is not already held under any prospecting licence or mining lease, for
the purpose of such conservation.
Provided that before making any such reservation, the State Government shall specify by
notification, the boundaries of such area and the mineral or minerals in respect of which
such area is proposed to be reserved and shall take a decision after considering such
objections with regard to the proposed action as may be received by it within thirty days
from the date of publication of the notification aforesaid.
(2) The State Government may, if it is of opinion that it is necessary in the public
interest so to do, reserve any area, which is not already held under a
prospecting licence or mining lease, for undertaking mining operations in that
area through a Government company or corporation owned or controlled by
the State Government.
Provided that before making am such reservation, the State Government shall specify by
notification, the boundaries of such area and the mineral or minerals in respect of which
such area is proposed to he reserved for a Government company or corporation owned or
controlled by the State Government to undertake mining operations in that area and no
such reservation shall he made except after considering such objections as may he received
by the State Government within thirty days from the date of publication of the notification
a for said.
CHAPTER VI
DEVELOPMENT OF MINERALS
Mineral development 20. (1) It shall be the duty of the of the State Government to take all such steps as
may be necessary for the conservation and development of minerals in the
State, and for the protection of environment by preventing or controlling any
pollution which may be caused by prospecting or mining operations and, for
the purpose, the State Government may, by notifications, make such rules it
may think fit.
(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 opening of new mines and the regulation of mining operations in any
area
(b) the regulation of the excavation or collection of minerals from any mine.
(c) the measures to be taken by leases of mines for the purpose of
beneficiation of ores, including the provision of suitable contrivances for
such purpose
(d) the development of mineral resources in any area.
(e) the notification of all new borings and shaft sinking and the preservation
or bore-hole records, and specimens of cores of all new bore-holes.
(f) the regulation of the arrangements for the storage of minerals and the
stocks thereof that may be kept by any person.
(g) the submission of samples of minerals from any mine by the lessees
thereof and the manner in which, and the authority to which, such
samples shall be submitted, and the taking of samples of any minerals
from any mine by the State Government or any other authority specified
by it in that behalf:
(h) the submission by lessees of mines of such special or periodical returns
and reports as may be specified, and the form in which and the authority
to which such returns and reports shall be submitted
(i) regulation of prospecting operations;
(j) the employment of qualified geologists or mining engineers to supervise
prospecting or mining operations;
(k) the disposal or discharge of waste, slime or tailings arising from any
mining or metallurgical operations carried out in the mine;
(1) the manner in which, and the authority by which, directions may be
issued to the owners of any mine to do or refrain from doing such things
as may be prescribed in the interests of conservation or systematic
development of minerals or for the protection of environment by
preventing or controlling pollution which may be caused by prospecting
or mining operations;
(m) maintenance and submission of such plans, register or records as may be
specified by the State Government;
(n) submission of records or reports by persons carrying on prospecting or
mining operations regarding any research in mining or geology carried
out by them;
(o) facilities to be afforded by persons carrying out prospecting or mining
operations to persons authorized by the State Government for the purpose
of undertaking research or training in matters relating to mining or
geology;
(p) procedure for, and manner of, imposition of fines for the contravention of
any of the rules made under this section and the authority who may
impose such fines ;
(q) the authority to which the period within which, the form and manner in
which, application for revision of any order passed by any authority under
this section or any rule made thereunder may he made, the fee to the paid
for, and the documents which should accompany such application.
(r) All rules made under this section shall be binding on the State
Government.
Power to authorize Geological Survey of India etc. to make investigation: 21. (1) Where the State Government is of opinion that for the conservation and
development of any mineral in the State it is necessary to collect as precise
information as possible with regard to any mineral available in or under any
land in relation to which any prospecting licence or mining lease has been
granted, the State Government may authorize the Geological Survey of India
or such authority or agency as it may specify in this behalf to carry out such
detailed investigations for the purpose of obtaining such information as may
be necessary.
(2) On the issue of an authorization under Sub-section (1), it shall he lawful for
the Geological Survey of India or the specified authority or agency and its
servants and workmen.
(a) to enter upon such land,
(b) to dig or bore into the sub-soil,
(c) to do all other Acts necessary to determine the extent of any mineral
available in or under such land,
(d) to set out boundaries of the land in which any mineral is expected to be
found,
(e) to mark such boundaries and line by placing marks.
(f) where otherwise the survey cannot be completed on the boundaries and
line marked, to cut down and clear away any part of any standing crop,
fence or jungle;
Provided that no such authority or agency shall enter into any building or upon any
enclosed courtyard or garden attached to the dwelling house (except with the consent of
the occupier thereof) without previously giving such occupier atleast seven days’ notice in
writing of its intention to do so,
(3) Whenever any action of the nature specified in Sub-section (2) is to he taken,
the State Government shall, before or at the time when such action in taken,
pay or tender payment for all necessary damage which is likely to be caused,
and in case of dispute as to the sufficiency of the amount so paid or tendered
or as to the person to whom it would be paid or tendered, the State
Government shall refer the dispute to such authority as is empowered to
exercise the functions or the principal civil court of original jurisdiction over
the land in question.
(4) The fact that there exists any such dispute as is referred to in Sub-sections (3)
shall not be a bar to the taking of any action under Sub-section (2)
(5) After the completion of the investigation, the Geological Survey of India or
the specified authority or agency by which the investigation was made shall
submit to the State Government a detailed report indicating therein the extent
and nature of any mineral which lies deposited in or under the land.
(6) The costs of investigation made under this section shall be borne by the State
Government.
Provided that where the State Government or other person in whom the minerals are
vested or the holder of any prospecting licence or mining lease applies to the State
Government to furnish to him a copy of the report submitted under Sub-section (5), the
State Government or other person or the holder of a prospecting licence or mining lease, as
the case may be, shall bear such reasonable part of the costs of investigation as the State
Government may specify in this behalf and shall, on payment of such part of the costs of
investigation, be entitled to receive form the State Government a true copy of the report
submitted to it under Sub- section (5).
CHAPTER VII
OBLIGATIONS OF HOLDER OF PROSPECTING
LICENCES AND MINING LEASES
Notice to be given of prospecting or mining operations 22. (1) The holder of a prospecting licence and the holder of a mining lease shall,
before the commencement of any prospecting or, as the case may be, mining
operations, given to such authority as the State Government may, by
notification, specify, a notice in writing, in such form and containing such
particulars as may be prescribed, of his intention to commence such
prospecting of mining operations.
(2) Any notice given under Sub section (1) shall he so given as to reach the
specified authority atleast one month before the commencement of any such
prospecting or mining operation.
Duties and responsibilities of holder of prospecting licences or mining lease 23. (1) The holder of every prospecting licence or mining lease shall he responsible
for making financial and other provisions and for taking such other steps as
may be necessary for compliance with the provisions of this Act and the rules
made thereunder to ensure the safety of the mines and minerals that may be
explored or exploited as a result of such prospecting or mining operations and
for the safety and security of the persons employed for the purpose of
carrying out such operations.
(2) The holder of a prospecting licence or mining lease shall each be responsible
for the compliance with the rules made under Sub-section (1) and it shall not
be a defence that such holder of licence or lease had appointed a manager or
other officials to carry out such prospecting or mining operations.
(3) The holder of a prospecting licence or a mining lease shall also be
responsible to make such provisions for the health and safety of the persons
employed in connection with such prospecting or mining operations as may
be prescribed.
Power of inspection of State Government 24. (1) If the State Government on any authority empowered by it in this behalf has
any reason to believe that any mine or part thereof or any matter or thing or
practice in, or connected with, the prospecting or mining operations, or
control, su- pervision management or direction thereof, is dangerous to
human life or safety or defective so as to threaten, or tend to threaten the
bodily injury to any person, that Government or as the case may be, that
authority may give a notice in writing to the holder of the prospecting licence
or mining lease, stating therein the particulars it respect of which that
Government or authority consider the mine or part thereof or the matter thing
or practice to be dangerous or defective and require the same to be remedied
within such time and in such manner as may be specified in the notice.
(2) Without prejudice to the provisions of Sub-section (1), the State Government
or the authority empowered under Sub section (1) may, by order in writing,
addressed to the holder of, the prospecting licence or mining lease, prohibit
the extraction or reduction of pillars or blocks of minerals in any land or mine
or part thereof if, in the opinion of that Government or, as the case may be,
that authority, such operation is likely to cause the crushing of pillars or
blocks of minerals or the premature collapse of any part working or otherwise
endanger the land or mine or the life or safety of persons employed therein or
if adequate provisions against the outbreak of fire or flooding has not been
made by providing for the sealing off and isolation of the part of the land or
in which such operation has been undertaken or is contemplated and for
restricting the area that might he affected by fire or flooding.
(3) If the authority empowered in this behalf under Sub-section on (1) is of
opinion that there is urgent or immediate danger to the life or safety of any
person employed in any land or mine or part thereof. it may, by an order in
writing, containing a Statement of the grounds of his opinion prohibit until it
is satisfied that the danger has been removed, the employment in or about the
land or mine on the concerned part thereof any person, whose employment is
not, in its opinion reasonably necessary for the purpose of removing the
danger,
(4) Every person whose employment is prohibited under Sub-section (3) shall be
entitled to thee payment of full wages for wages for the period for which he
would have been, but for the prohibition, in employment and the holder of the
prospecting licence or, as the case may be, mining lease shall be liable for the
payment of the full wages of the person so prohibited from being employed.
Provided that the holder of the prospecting licence or mining lease may, instead of paying
such full wages, provide such, person with the alternative employment at the same wages
which such person was receiving in the employment which was prohibited.
(5) Where a notice has been given under Sub-section (1) or an order has been
made under Sub-section (4), the holder of the prospecting licence or, as the
case. may be, mining lease may, within ten days of the receipt of the notice or
order, as the case may be, appeal against the same to the State Government
and that Government may, after giving to the appellant a reasonable
opportunity of being heard, confirm, modify or cancel the notice or order.
(6) An appeal shall not operate as a stay of operation of any notice or order
unless the operation of such notice or order has been stayed by the appellate
authority and in the absence of any such stay order, such notice or order shall
he complied with.
Steps which may be taken in the event of omission to take steps for providing safety 25. (1) Where any holder of a prospecting Licence or mining lease omits or fails to
comply with the provision of this Act or any rule made thereunder of relating
to safety, the authority empowered under Section 23 may give notice in
writing requiring such holder of prospecting licence or mining lease to
comply with the provisions relating to safety within such time as may be
specified in the notice or within such extended time as that authority may,
from time to time, allow.
(2) Where the holder of the prospecting licence or mining lease fails to comply
with the terms of the notice given under Sub- section (1) within the period
specified in the notice or, as the case may be, within extended time allowed
under that Subsection, the empowered authority may, by order in writing,
prohibit the employment in or about the land or mine or any part thereof, of
any person whose employment is not, in the opinion of that authority,
reasonably necessary for securing compliance with the terms of the notice.
(3) Every person whose employment is prohibited under Sub-section (2) shall be
entitled to payment of full wages for the period for which he would have
been, but for the prohibition, in employment, and the holder of the
prospecting licence or mining lease, as the case may be, shall be liable for
payment of such full wages of the person.
Provided that the holder of the prospecting licence or, as the case may be, mining lease
may, instead of paying such full wages provide alternative employment at the same wages
which such employee was receiving in the employment which he was prohibited under
Sub-section (2).
Notice to be given of accidents 26. (1) Whenever there occurs in any land in which any prospecting operation is
being carried on or in a mine :
(a) an accident causing loss life or serious bodily injury; or
(b) an explosion, ignition, spontaneous heating, outbreak of fire or eruption
or inrush of water or other liquid matter; or
(c) an influx of inflammable or noxious gases; or
(d) a breakage of ropes, chains or other gear by which persons or materials
are lowered, raised in a shaft or an incline; or
(e) an overwinding of cages or other means of conveyance in any shaft
while persons or materials are being lowered or raised, or
(f) a premature collapse of any part of the workings, or
(g) Any other accident which may be prescribed, the holder of the
prospecting licence or, as the case may be, mining lease shall give notice
of such accident to such authority and within such time as may be
prescribed and shall simultaneously post one copy of the notice on a
special notice-board in the prescribed manner at place where it may be
inspected by trade union officials, and shall ensure that the notice is kept
on the notice-board for not less than fourteen days from the date of such
posting.
(2) Where an accident, of which notice has been given under Sub- section (1),
causes loss of the life prescribed authority shall hold an inquiry into the
occurrence within two months of the receipt of the notice.
(3) Where any bodily injury to any person is caused, whether by reason of an
accident of which notice has been given under Sub- section (1) or otherwise.
resulting in the enforced absence from work of the person injured for a period
exceeding twenty-four hours, the holder of the prospecting licence or, as the
case may be, mining lease shall enter in a register in the prescribed form and
copies of such entries shall be furnished to the prescribed authority.
(4) Wherever there occurs in or about a land in which prospecting operations are
being carried on, or in any mine, an accident causing loss of life or serious
bodily injury to any person, the place of the accident shall not be disturbed or
altered before the arrival, or without the consent, of the prescribed authority
to whom the notice of the accident is required to be given under Sub-section
(I), unless such disturbance or alteration is necessary to prevent any further
accident, to remove bodies of the deceased or to rescue any person from
danger or unless discontinuance of work at the place of accident would
seriously impede the prospecting operation or of the mine;
Provided that where the prescribed authority fails to inspect the place of the accident
within seventy-two hours of the time of the accident, work may be resumed at the place of
the accident.
Power of State Government to appoint a Court of Inquiry in case of accidents 27. (1) Where any accident of the nature referred to in Sub- section (1) of section 26
occurs in or on, any land in which prospecting operations are being carried
on, or, as the case may be, in or about a mine, the State Government may, if it
is of opinion that a formal inquiry into the causes and circumstances
attending the accident ought to be held, appoint a competent person to hold
such inquiry and may also appoint one or more persons possessing legal or
special knowledge to Act assessor or assessors in holding the inquiry.
(2) The person appointed to hold any such inquiry shall have all the powers of a
civil court under the Code of Civil procedure, 1908, for the purpose of
summoning and enforcing the attendance of witnesses and compelling the
production of documents and material objects.
Central Act 5 of 1908
(3) Any person holdings an inquiry under this section may exercise such of the
powers of the prescribed authority as he may think it necessary or expedient
for the purpose of the inquiry.
(4) The person holding an inquiry under this section shall make a report to the
State Governing stating the causes of the accident and its circumstances and
adding any observations which he or any assessor may think fit to make.
Estt, of group gathering station 28. (1) There shall be established by every person making exploration in an oil field
as many “group gathering station” as he may consider fit for the gathering
and separation of solid, liquid and gas.
(2) All mineral oils (including crude oil), petroleum, petroleum products and
natural gas obtained from land within the State shall, before they are moved
for refining or for distribution shall be brought to the “ground gathering
station”.
(3) No movement, disposal or distribution of minerals referred to in sub-section
(2) and natural gas shall be made from any place in the State other than
through the concerned “group gathering station”.
Obligation of lessee to sell Natural gas to State Government etc. 29. (1) If the State Government is satisfied that it is necessary in the public interest
so to do, it may by a notice served on the lessee require him to sell to the
State Government or such Corporation owned or controlled by the State
Government as may be specified by that Government all the natural gas
obtained by him from the “group gathering station” within the State.
(2) The condition of the lease made to a person for exploration from oil fields in
the State shall be deemed to include a condition to the effect that such lessee
shall be under an obligation to sell all the natural gas obtained by him at the
“group gathering station” in the State to the State Government or to such
Corporation owned or controlled by the State Government as may be
specified by that Government and to no one else at such price as may be
agreed upon by and in between the lessee and the State Government or such
Corporation as the case may be, and in default of such agreement, as may be
determined by the competent authority appointed under this Act.
CHAPTER VIII
CONTROL OVER PETROLEUM
Import, Transport etc. of petroleum to be made under a licence 30. No one shall Import, export, transport store, reline or blend petroleum in the
State save under, and in accordance with a licence granted or renewed under the
rules made under section 39.
Power of State Government to make rules regulating import etc. of petroleum 31. The State Government may make rules
(a) providing for the manner in which, an application for a licence under section
38 shall be made, and conditions under which such licence shall be granted,
renewed or held;
(b) providing for the period for which a licence granted or renewed under this
section shall be in force;
(c) providing the condition on the breach of non-observance of which a licence
granted or renewed under section 38 may be cancelled or withdrawn.
Provided that no licence granted or renewed under section 38 shall be cancelled or the
holder of the licence a reasonable opportunity of being heard,
(d) providing for the places where petroleum may he imported, and prohibiting
its import elsewhere,
(e) regulating the import, export or transport of petroleum,
(f) providing for the disposal, by confiscation or otherwise, of any petroleum in
respect of which a licence has not been applied for within the prescribed
period or has been refused, cancelled or withdrawn, and which has not been
exported:
(g) specifying the nature and condition of all receptacles and pipe-lines in
which, or by which, petroleum may be transported;
(h) regulating the places at which, and the conditions subject to which,
petroleum may be stored;
(i) specifying the nature and condition of all receptacles in which petroleum
may be stored;
(j) determining the cases or class of cases in which a licence for the transport of
petroleum shall be obtained by the consignee, consignor or carrier,
(k) specifying the proportion in which any specified poisonous substance may
be added to petroleum and prohibiting the import, export, transport or
storage of petroleum in which the proportion of each such poisonous
substance exceeds the prescribed proportion;
(l) generally providing for any matter which is in its opinion expedient for
proper control over the import, export, transport or storage of petroleum.
Production, refining and blending of petroleum 32. (1) No one shall produce, refine or blend petroleum save under, and in
accordance with the rules made under sub-section (2).
(2) The State Government may make rules
(a) providing the conditions subject to which petroleum may be produced,
refined or blended; and
(b) regulating the removal of petroleum from places where it is produced.
refined or blended and preventing the storage therein and removal there-
from of any petroleum which has not satisfied the prescribed tests.
Receptacles of dangerous petroleum to show warning 33. All receptacles, containing petroleum shall have a stamped, embossed, painted or
printed warning either on the receptacle itself or, when that is impracticable,
displayed near the receptacle exhibiting in conspicuous character the words,
“PETROL” or “MOTOR SPIRIT”, or an equivalent warning of the dangerous
nature of petroleum;
Provided that this section shall not apply to
(a) any securely stoppered glass, stone-ware or metal receptacle of less than ten
litres capacity containing petroleum which is not for sale; or
(b) tank incorporated in a motor conveyance, or attached to an internal
combustion engine, and containing petroleum intended to be used to
generate motive power for the motor conveyance or engine, or
(c) a pipe-line for the transport of petroleum, or
(d) any tank which is wholly underground, or
(e) any class of receptacles which the State Government may, by notification,
exempt from the operation of this section.
No licence needed for transport or storage of limited quantities of certain petroleum 34. Notwithstanding anything contained in this Chapter, a person need not obtain in
licence for the transport or storage of;
(i) Petroleum having a flashpoint to twenty three degrees Celsius if the total
quantity in his pm session at any one place does not exceed two thousand
five hundred litres and none of it is contained in a receptacle exceeding one
thousand litres in capacity, or
(ii) petroleum having a flashpoint of sixty-five degrees Celsius and above but
below ninety-three celsius,
Explanation: In this Act “flashpoint” of any petroleum means the lowest temperature at
which it yields a vapour which will give a momentary flash when ignited, determined in
accordance with the provisions of Chapter VII and the rules made thereunder.
Exemption for motor conveyance and stationary engines:
35. (1) The owner of a motor conveyance who complies with the requirements of law
for the time being in force relating to the registration and licensing of such
conveyance and its driver or pilot and the owner of any stationary internal
combustion engine, shall not require a licence.
(a) for the import or storage of any petroleum contained in any fuel tank
incorporated in the conveyance or attached to the internal combustion
engine, or
(b) for the transport or storage of petroleum having a flashpoint below twenty
–three degrees Celsius, not exceeding one hundred litres in quantity,
possessed under Cause (a) provided that the petroleum is intended to be
used to generate motive power for the motor conveyance or engine;
Provided further that the total quantity of such petroleum which may be stored without a
licence under Clause (b) shall not exceed one hundred litres, notwithstanding that such
owner may possess other motor conveyance or engine.
(2) Petroleum having flashpoint below twenty-three degree Celsius transported
or stored without a licence under Clause(b) of sub-section(1) shall be kept a
Provided in sub-section (2) of section 42 and if it exceeds thirty litres in
quantity shall be stored in an isolated place which does not communicate with
any room where any persons resides or works or in any room where persons
assemble.
No licence needed by or any other carrier or by any other carier 36. Notwithstanding anything contained in this chapter, a railway administration as
defined in the Indian Railway Act, 1890, or any other carrier need not obtain any
licence for the import or transport if any petroleum in its capacity as a carrier.
Central Act 9 of 1890Exemption of heavy oils 37. Nothing in this chapter shall apply to any petroleum which has its flashpoint not
below ninety-three degree Celsius.
General Power of Exemption 38. The State Government may, by notification exempt any petroleum specified in
the notification from all or any of the provisions of this chapter.
Inspection of Places 39. (1) The Government may authorize any officer by name or by virtue of office to
enter any place where petroleum is being imported , stored, produced, refined
or blended or ids under transport and inspect all receptacles, plant and
appliances used in connection with petroleum in order to ascertain if they are
in accordance with the provisions of this chapter and the rules made
thereunder.
(2) The State Government may make rules regarding the procedure of
authorizing officers under this section.
CHAPTER IX
TESTING OF PETROLEUM
Inspection and sampling of petroleum 40. (1) The State Government may by notification, authorize any officer by name or
by virtue of office to enter any place where petroleum is being imported,
transported, stored, produced, refined or blended and to inspect and take
samples of any petroleum found therein.
(2) The State Government may make rules
(a) regulating the taking of samples of petroleum for testing;
(b) determining the cases in which payment shall be made for the value of
samples taken, and mode of payment, and
(c) generally regulating the procedure of officers exercising powers under
this section.
Standard test Apparatus 41. (1) A standard apparatus for determining the flash-point of petroleum shall be
deposited with an officer to be appointed in this behalf by the State
Government by notification,
(2) Such apparatus shall be engraved with the words “Standard Test Apparatus”
and shall be verified and corrected from time to time and replaced when
necessary in accordance with the rules made under section 47.
(3) The Standard Test Apparatus shall, on payment of the prescribed fees, be
open to inspection at all reasonable times by any person wishing to inspect it.
Certification of other test apparatus 42. (1) The officer appointed under section 51 shall on payment of the prescribed
fee, if any, compare with the Standard Test Apparatus any apparatus for
determining the flash point of petroleum which may be submitted to him for
this purpose.
(2) If any apparatus is found by him to agree with the Standard Test Apparatus
within the prescribed limits, the officers shall engrave such apparatus with a
special number and with the date of comparison, and shall give a certificate in
respect of it in the prescribed form, certifying that on the said date the
apparatus was compared with the Standard Test Apparatus and was found to
agree with it within prescribed limits, and specifying any corrections to be
made in the results of tests carried out with the apparatus.
(3) A certificate granted under this section shall he valid for such period as may
be prescribed.
(4) A certificate granted under this Section shall, during the period for which it is
valid, be proof, until the contrary is proved, of any matter Stated therein.
(5) The officer shall keep a register, in the prescribed form of all certificates
granted by him under this section.
Testing Officers 43. The State Government may authorize any officer by name or by virtue of office
to test petroleum of which samples have been taken under this Act or which may
have been submitted to him for test by any person and to give certificates of the
results of such tests.
Manner of testing 44. All tests of petroleum made under this Act shall be made with a test apparatus in
respect of which there is valid certificate under section 42 and shall have, due
regard to any correction specified in that certificate, and shall be carried out in
accordance with rules made under section 47.
Certificate of Testing 45. (1) The testing officer shall, after testing samples of petroleum make out a
certificate in the prescribed form, stating whether the petroleum is petroleum
having a flashpoint of
(i) below twenty- three degrees Celsius, or
(ii) twenty-three degrees Celsius and above but below sixty-five degrees
Celsius or
(iii) sixty-five degrees Celsius and above but below ninety-three decrees
Celsius,
(2) The testing officer shall furnish the person concerned, at his request, with a
certified copy of the certificate on payment of the prescribed fee and such
certified copy may be produced in any court or before any authority in proof
of the contents of the original certificate.
(3) A certificate given under this section shall be admitted ~n evidence in any
proceedings which may be taken under this Act in respect of the petroleum
from which samples were taken, anti shah until the contrary is proved be
conclusive proof that the petroleum has the flash-point
(i) below twenty-three degree Celsius,
(ii) of twenty-three degree Celsius and above but below sixty-five degree
Celsius, or
(iii) of sixty-five degree Celsius and above hut below ninety-three degree
Celsius,
Right to require Retest
46. (1) The owner of any receptacle or his agent, who is dissatisfied with the result
of the test of petroleum may, within seven days from the date on which he
received intimation of the result of the test, apply to the Officer empowered
under Section 43 to have fresh samples of the petroleum taken and tested.
(2) On such application and on payment of the prescribed fee, fresh samples of
the petroleum shall be taken in the presence of such owner or agent or person
deputed by him and shall he tested in the presence of such owner, agent or
person deputed by him.
(3) If on such retest it appears that the original test was erroneous, the testing
officer shall cancel the original Certificate granted under Section 45, shall
make out a fresh certificate, and shall furnish the owner of the petroleum or
his agent, with a certified copy thereof, free of charge.
Power of State to make rules 47. The State Government may, by notification, make rules.
(a) for the specification, verification, correction and replacement of the Standard
Test Apparatus.
(b) prescribing fees for the inspection of the Standard Test Apparatus;
(c) regulating the procedure in comparing a test apparatus with a Standard Test
Apparatus;
(d) prescribing the form of certificate to be given in respect of a test apparatus
so compared, and the period for which such certificate shall be valid;
(e) prescribing the form of the register of such certificates;
(f) prescribing fees for comparing a test apparatus with the Standard Test
Apparatus;
(g) regulating the procedure of testing officers in carrying out tests of
petroleum, providing for the arranging of results where severed samples of
the same petroleum are tested and prescribing the variation from standard
temperatures which may be allowed;
(h) prescribing the form of certificates of tests of petroleum and the fees which
may be charged therefore
(i) providing, where the results of the testing of sample raise a doubt as to the
uniformity of the quality of the petroleum in any lot under test, for the
division of the lot into sub-lots, and for the selection and testing of samples
of each sub-lot and for the arranging of results in accordance with the results
of tests of those samples;
(j) prescribing fees for re-test under section 46 and providing for the refund
where the original test was erroneous; and
(k) generally regulating the procedure of all officers performing duties
connected with the testing of petroleum, and providing for any matter
incidental to such testing.
Power of State Government to make special rules for viscous or solid forms of
petroleum 48. The State Government may also make rules proving specially for the testing of
any form of petroleum which is viscous or solid or contains sediments nr
thickening ingredients, and such rules may modify or supplement any of the
provisions of this Chapter or of the rules made under Section 47 in order to adapt
them to the special need of such tests.
CHAPTER-X
POWER TO ACQUIRE RIGHT OF USER IN LAND FOR
LAYING PIPE LINES FOR THE TRANSPORT OF
MINERAL OILS AND NATURAL GAS.
Interpretations 49. In this chapter, unless the context otherwise requires
(a) “Competent Authority” means any person or authority appointed by the
State Government by notification, to perform the functions of the com-
petent authority under this Act, and different persons or authorities may he
authorized to exercise all or any of the functions of the competent authority
under this Act in the same area or different areas specified in the
notification;
(b) “corporation” means any body corporate established under any Central or
State Act, and includes —
Central Act I of 1956 (i) a company termed and registered under the Companies Act. 1956, and
(ii) a company formed and registered under any law relating to company
formerly in force in any part of the State,
(c) words and expressions used in this chapter and not defined in chapter 1
have the meanings, respectively assigned to them in that chapter.
Publication of notification for acquisition
50. (1) whenever it appears to the State Government that it is necessary in the public
interest that, for the transport of mineral oils and natural gas from one locality
in the State to another locality in the State, pipe lines mar be laid by the State
Government or a corporation, authorized by the State Government to do so
and that for the purpose of laying such pipelines it is necessary to acquire the
right of user in any land in the State under which such pipelines may be laid,
it may, by notification declare its intention to acquire the right of user therein.
(2) every notification under Sub-section (1) shall give a brief description of the
land.
(3) The competent authority shall cause the substance of the notification to be
published at such places and in such manner as may he prescribed.
Power to enter, survey etc. 51. On the issue of a notification under Sub-section (1) of section 50 it shall be
lawful for any person authorized by the State Government or the corporation
which proposes to lay the pipelines for the transport of any mineral Oil or natural
gas and its servants and workmen
(a) to enter upon and survey and take levels of any land specified in the
notifications;
(b) to dig or bore into the sub-soil;
(c) to set out the intended line of work;
(d) to mark such levels, boundaries and lines by ploaing marks and cutting
trenches;
(e) where otherwise survey cannot be completed and levels taken and
boundaries and lines marked, to cut down and clear away any part of any
standing crop, fence or jungle, and
(f) to do all other Acts necessary to ascertain whether pipelines can be laid
under the land.
Provided that while exercising any power under this Section, such person or any servant or
workman of such person shall cause as little damage or injury as possible to such land
Hearing of objections 52. (1) Any person interested in the land specified in the notification made under
section 50 may, within twenty-one days from the date of publication of
the notification under sub-section (1) of section 50 object to the laying of the
pipeline under the land
(2) Every objection under sub-section (1) shall be made to the competent
Authority in writing and shall set out the grounds thereof and the Corn patent
Authority shall give to the objector a reasonable opportunity or being heard
either in a person or by a legal practitioner and may, after hearing all such
objections and after making such further inquiry, if any, as that Authority
things necessary, by order, either allow or disallow the objections.
(3) Any order made by the Competent Authority under Sub-section (2) shall be
final.
Declaration of acquisition of right of user 53. (1) Where no objections under sub-section (1) of section 52 have been made to
the competent authority within the period specified therein or where the
Competent Authority has disallowed the objections under sub-section (2) of
that Section, that Authority shall as soon as may be, either make a report in
respect of the land described in the notification under sub-section (1) of
section 50 or make different reports in respect or different parcels of such
land, to the State Government containing his recommendations on the
objections together with the records of the proceedings held by him, for the
decision of that Government and upon receipt of such report the State
Government shall, if satisfied that such and is required for laying any
pipelines for the transport of any mineral oil or natural gas, declare, by
notification, that right of user in the land for laying pipelines shall be
acquired and different declarations may be made from time to time in respect
of different parcels of the land described in the notification made under sub-
section (1) of section 50 irrespective of whether one report or different
reports have been made by the competent authority under this sub-section.
(2) On the publication of the declaration under subsection (1), the right of user in
the land specified therein shall vest absolutely in the State Government free
from all encumbrances.
(3) Where in respect of any land a notification has been made under sub-section
(1) of section 50 but no declaration in respect of any parcel of land covered
by that notification has been published under this section within a period of
one year from the date of that notification, that notification shall cease to
have effect on the expiration of that period.
(4) Notwithstanding anything contained in sub-section (2), the State Government
may, on such terms and conditions as it may think fit to impose, direct by
order in writing, that the right of user in the land for laying the pipelines
shall, instead of vesting in the State Government, vest, either on the date of
publication of the declaration, or on such other date as may be specified in
the direction, in the corporation proposing to lay the pipelines and thereupon
the right of such user in the land shall, subject to the terms and conditions so
imposed, vest in the corporation free from all incumbrances.
State Government or corporation to lay pipelines. 54. (1) Where the right of user in any land has been vested in the State Government
or a corporation under Section 53 —
(i) it shall be lawful for any person authorized by the State Government or
such corporation and its servants and workmen to enter upon the land
and lay pipelines or to do any other act necessary for laying pipelines
Provided that no pipelines shall be laid under — (a) any land which, immediately before the date of the notification
under Sub-section (1) of Section 50 was used for residential
purposes;
(b) any land on which there stands any permanent structure which was in
existence immediately before the said date;
(c) any land at a depth which is less than one metre from the surface;
(ii) for laying pipelines for the transport of mineral oils or natural gas, it
shall be lawful for any person authorised by the State Government or
such corporation to use such land for laying pipelines for transporting
any mineral oil or natural gas and where the right of user in any land has
so vested for laying pipelines for transporting any mineral oil or natural
gas, it shall be lawful for such person to use such land for laying
pipelines for transporting such mineral oil or natural gas, and
(iii) such land shall be used only for laying the pipelines and for maintaining,
repairing, altering or removing any such pipelines or for doing any other
act necessary for the aforesaid purposes or for the utilisation of such
pipelines.
If any dispute arises with regard to any matter referred to in paragraph (b) or
paragraph (c) of the proviso to Clause (i) of Sub-section (1) the dispute shall be
referred to the competent authority whose decision shall be final.
Power to enter land for inspection etc 55. For maintaining, examining, repairing, altering or removing any pipeline or for
doing any other act necessary for the utilisation of pipelines or for the making of
any inspection or measurement for any of the aforesaid purposes, any person
authorised in this behalf by the State Government or the corporation, as the case
may be, may after giving a reasonable notice to the occupier of the land under
which the pipelines have been laid, enter therein with such workmen and
assistants as may be necessary.
Provided that, where such person is satisfied that an emergency exists, no such notice shall
be necessary.
Provided further that while exercising any powers under this section, such person or any
workman or assistant of such person shall cause as little damage or injury as possible to
such land.
Restrictions regarding use of land 56. (1) The owner or occupier of the land with respect to which a declaration has
been made under Sub-section (1) of section 53, shall be entitled to use the
land for the purpose for which such land was put to use immediately before
the date of the notification under Sub-section (1) of section 50.
Provided that such owner or occupier shall not after the declaration made under the Sub-
section (1) of section 53:-
(i) construct any building or any other structure,
(ii) construct or excavate any tank, well reservoir or dam, or
(iii) plant any tree, on that land.
(2) The owner or occupier of the land under which any pipeline has been laid
shall not do any act or permit any act to be done which will or is likely to
cause any damage in any manner whatsoever to the pipeline.
(3) Where the owner or occupier of the land with respect to which a declaration
has been made under Sub-section (1) of Section 53
(a) constructs any building or any other Structure, or
(b) constructs or excavates any well, tank. Reservoir or dam, or
(c) plant any tree
on that land, the authority exercising the powers of the court of District Judge
within the local limits of whose jurisdiction such land is situated may, on an
application made to it by the Competent Authority and after holding of such
inquiry as it may deem fit, cause the building, structure, reservoir, dam or tree to
be removed or the well or tank to be filled up, and the cost of such removal or
filling up shall be recoverable from such owner or occupier in the same manner
as if the order for the recovery of such costs were a decree made by that
Authority.
Compensation 57. (1) Where, in the exercise of the powers conferred by Section 50, Section 53 or
Section 54 any person interested in the land under which the pipeline is
proposed to be, or is being, or has been laid, the State Government or the
corporation, as the case may be, shall be liable to pay compensation to such
person for such damage, loss or injury, the amount of which be determined
by the competent Authority in the first instance.
(2) If the amount of compensation determined by the competent authority under
sub-section (1) is not acceptable to either of the parties, the amount of
compensation shall, on application by either of the parties to the Deputy
Commissioner within the local limits of whose jurisdiction the land or any
part thereof is situated, he determined by the Deputy Commissioner.
(3) The competent authority or the Deputy Commissioner while determining the
compensation under Sub-section (1) or Sub-section (2) as the case may be,
shall have due regard to the damage, loss or injury sustained by any person
interested in the land by reason of -
(i) removal of trees or standing crops, if any, on the land while exercising
the powers under Section 50, Section 53 or Section 54;
(ii) the temporary severance of the land under which the pipeline has been
laid from other lands belonging to, or in the occupation of, such person,
or
(iii) any injury to any other property, whether movable or immovable, or the
earnings of such person in any other manner
Provided that in determining the compensation no account shall be taken of any structure
or other improvement made in the land after the date of the notification made under Sub-
section (1) of Section 50
(4) Where the right of user of any land has vested in the State Government or the
corporation, the State Government or the corporation, as the case may be,
shall, in addition to the compensation, if any, payable under Sub-section (1),
be liable to pay to the owner and to any other person whose right of
enjoyment in that land has been affected in any manner whatsoever by reason
of such vesting, compensation calculated at ten percent of the market value of
the land on the date of notification made under Sub-section (1) of Section 50,
(5) The market value of the land on the said date shall be determined by the
Competent Authority and if the value so determined by that Authority is not
acceptable to either of the parties, it shall, on an application by either of the
parties, to the Deputy Commissioner referred to in Sub section (2), be
determined by that Deputy Commissioner.
(6) The decision of the Deputy Commissioner under Sub-section (2) of Sub-
section 50 shall be final.
Deposit and payment of compensation 58. (1) The amount of compensation determined under Section 37 shall be deposited
by the State Government or the corporation, as the case may be, with the
Competent Authority within such time and in such manner as may be
prescribed.
(2) If the amount of compensation is not deposited within the time prescribed
under Sub-section (1), the State Government or the corporation, as the case
may be, shall be liable to pay interest thereon at the rate of six percent per
annum from the date on which the compensation had to be the deposited till
the date of the actual deposit.
(3) As soon as may be after the compensation has been deposited under Sub-
section (1) the Competent authority shall on behalf of the State Government
or the corporation, as the case may be, pay the compensation, to the persons
entitled thereto.
(4) Where several persons claim to be interested in the amount of compensation
deposited under Sub-section (1), the Competent Authority shall determine the
person who in its opinion are entitled to receive the compensation and the
amount payable to each of them.
(5) If any dispute arises as to the apportionment of the compensation or any part
thereof or as to the persons to whom the same or any part thereof is payable,
the Competent Authority shall refer the dispute to the decision of the Deputy
Commissioner within the local limits of whose jurisdiction the land or any
part thereof is situated and the decision of the Deputy Commissioner thereon
shall be final.
Competent Authority to have certain powers of Civil Courts. Ceniral Act 5 of 1908 59. The Competent Authority shall have, for the purpose of this Act, all the powers
of a civil court while trying a suit under the Code of Civil Procedure, 1908 in
respect of the following matters, namely
(a) summoning and enforcing the attendance of any person and examining him
on oath;
(b) reguiring the discovery and production of any document;
(c) reception of evidence on affidavit;
(d) requisitioning any public record from any court or office;
(e) issuing commission for examination of witnesses.
Penalties 60. (1) Whoever wilfully obstructs any person in doing any of the acts authorised by
Section 51, Section 54 or Section 56 or wilfully fills up, destroys, damages or
displaces any trench or mark made under Section 51 or wilfully does any act
prohibited, under Section 56, shall be punished with imprisonment for a term
which may extend to six months or with fine or with both.
(2) Whoever wilfully removes, displaces, damages or destroys any pipeline laid
under Section 34, shall be punished with imprisonment for a term which shall
not be less than one year, but which may extend to three years and shall also
be liable to fine.
Power to make rules.
61. (1) The State Government may, by notification, make rules for carrying out the
provisions of this Chapter.
(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 place at which and the manner in which the substance of the
notification may be published under Sub-section (3) of Section 50;
(b) the time within which and the manner in which the amount of
compensation may be deposited under Sub section (1) of Section 58;
(c) any other matter which is required to be, or may be prescribed.
Application of other laws 62. The provisions of this chapter shall be in addition to, and not in derogation of,
any law for the time being in force in the State relating to the acquisition of land.
CHAPTER XI
APPLICATION AND AMENDMENT OF THE
NAGALAND (REQUISITION AND ACQUISITION) ACT, 1965
Power to undertake investigation for development of land and its resources 63. Whenever the State Government is of opinion that for the purpose of
development of any land in the State for conservation, exploration of its
resources it is necessary so to do, it may, by notification, authorise such authority
as it may think fit to undertake a survey or other investigation to determine
whether the whole of the State or any region or any part of the territory thereof
contains or may hereafter contain any mineral resources, and on the issue of such
notification, it shall be the duty of the authority so specified to make the
determination aforesaid.
Acquisition of land for conservation etc. shall be deemed to be for a public purpose 64. (1) Whenever any land in the State is proposed to be acquired for the purpose of
conservation, development, exploration or exploitation of any land and its
resources or for the establishment or development of any industry or for any
other purposes of this Act, such acquisition shall he deemed to be needed for
a public purpose.
3 of 1965 (2) The provisions of the Nagaland (Requisition and Acquisition) Act, 1965 shall
apply to every acquisition of land for the purposes specified in Sub-section
(1), and in its application to any acquisition of land for any such purpose, the
Act aforesaid shall apply subject to the following amendments, namely:-
(i) in Section 2, in the Explanation to Clause (a), for the words “and
easements”, the words “easements and minerals and minerals oils” shall
be substituted;
(ii) after Section 9, the following Section shall be inserted, namely:-
Speedy acquisition of land for mineral development etc. 9A. (1) Notwithstanding anything contained elsewhere in this Act, if in the opinion of
the State Government, it is necessary or expedient to acquire speedily any
land for public works including the development of such land for the purpose
of exploration, exploitation or conservation of minerals or for the purpose of
establishment or development of any industry, that Government may, by an
order in writing, acquire the land and on such order being made, the
provisions of Sub-section (2) of Section 9 with regard to the service of an
order for the acquisition of land under Sub-section (1) of Section 9 shall also
apply to the service of an order for acquisition of any land made under this
Section and references therein to Sub-section (1) of Section 9 shall be
construed as including references to an order made under this Section.
(2) The provisions of Section 10 with regard to the vesting and taking
possession of land acquired under Sub-section (1) of section 9 shall also
apply to the vesting and taking possession of land acquired under Sub-section
(1) of Section 9A and references in Section 10 to Section 9 shall be construed
as including references to an order made under Sub-section (I) of the Section
9A,
(3) The provisions of Sub-sections (1) and (2) of Section 11 with regard to the
determination of compensation to be paid for the acquisition of any land
under Sub-section (1) of Section 9 shall also-apply to the determination of
compensation to be paid for the acquisition of any land under Sub-section (1)
of this Section and references in the said Sub-sections of Section 11 to
Section 9 shall be construed as including references to the determination of
compensation to be paid for requisition of any land under this Section”
Compensation to be comprehensive 65. The compensation to be paid for acquisition of any land for the purpose of
conservation, development, exploration or exploitation of any mineral resources
under the Nagaland (Requisition and Acquisition) Act, 1965 shall be deemed to
be a comprehensive one and shall be deemed to include compensation for
whatever is on, in, over or under, the surface of the land so acquired.
Explanation : For the removal of doubts, it is hereby declared that no compensation shall
be separately payable for the acquisition of any mineral, mineral oil that may be found in, or
under, the land so acquired.
CHAPTER XII
LEVY AND COLLECTION OF TAX ON
MINERALRIGHTS
Power Of State Government To Levy And Collect Tax On Mineral Rights 66. (1) On and from such date as may he appointed by the State Government, by
notification, there shall be levied and collected by that Government, in each
financial year, a tax on the mineral rights every holder of a mining lease, and
different dates, may be appointed for different minerals.
(2) The amount of tax to be levied and collected under Sub-section (1) shall not
exceed the amount of the royalty payable under this Act by the holder of the
mining lease for the financial year immediately preceding the financial year
in respect of which such tax has been levied, as may he specified by the State
Government in the notification referred to in Sub- section (1) and different
amounts may be specified for different minerals.
(3) The tax referred to in Sub-section (1) shall be payable by the holder of the
mining lease in addition to the royalty payable by him for the relevant
financial year.
Determination of tax 67. (1) The amount of tax payable under section 66 shall be determined in
accordance with the provisions of that section by such authority as maybe
specified by the State Government by notification.
(2) Before levying any tax, the specified authority shah cause a notice of demand
to be served, in such manner as may be prescribed, on the holder of the
concerned mining lease specifying therein the amount of the tax which has
been determined under Sub-section (1) as being payable by him.
(3) The amount specified in the notice of demand served under Sub-section (2)
shall he paid within thirty days from the date of service of the notice
aforesaid.
(4) If any omission or default is made in payment of the tax specified in the
notice of demand within the period of thirty days aforesaid, the amount of
such tax shall be recoverable as a public demand
Appeal 68. Any person aggrieved by the levy or determination of the tax under Section 66
or, as the case may be, Section 67 may, within thirty days from the date of
service on him of the notice of demand under Section d7, prefer an appeal to such
authority as the State Government may appoint by notification and such authority
as the State Government may appoint by notification and such authority may,
after giving to the appellant and the authority levying and determining the
mineral tax a reasonable opportunity of being heard, pass such or errs on the
appeal as it may think fit, and the order passed on such appeal shall, subject to
the provisions of Section 69, be final.
Revision 69. The State Government may, either on its own motion or on an application made
by the aggrieved person, call for and examine the records relating to the proceed-
ings for the levy, determination or collection of mineral tax by any officer or
authority under this Chapter, for the purpose of satisfying itself as to the
correctness, legality or propriety of the order made by such officer or authority
or, as the case may be, and if in any case, it appears to the State Government that
such order or proceeding should he modified annulled, reversed or remitted for
reconsideration, it may pass orders accordingly.
Provided that no order adversely affecting any person shall be passed unless such person
has been given a reasonable opportunity of making his representation in relation to the
matter.
Rules to include certain matters 70. The rules made under this Act shall include the manner in which a notice of
demand issued under this Chapter and notices of appeal shall be served.
CHAPTER XIII
PENALTIES AND PROCEDURE FOR
THEIR IMPOSITION
Penalties
71. (1) Whoever contravenes the provisions of Sub-section (1) of Section 3 shall be
punished with imprisonment for a term which may extend to one year or with
fine which may extend to five thousand rupees, or with both.
(2) Whoever-
(a) in contravention of any provisions of this Actor any of the Rules made
thereunder other than Sub-section 1 of section 3 or Rules made
thereunder prospects, mines and stores. produces any mineral oil or
imports, exports, stores, refines or blends any petroleum or
(b) being for the time being in control or incharge of any place where an
mineral is being prospected, stored or produced or is under transport
imported, refined or blended contravenes any provision or this Act or
any rule made thereunder or suffers any such provision to be contravene
d or refuses or neglects to show to any officer authorised under this Act
or any rule made thereunder, any receptacle, plant or appliance used in
such place in connection with any mineral or in way obstructs or fails to
render reasonable assistance to such officer during inspection.
(c) being required to give information of an accident, fails to give such
information shall be punished with simple imprisonment for a term
which may extend to one month, or with fine which may extend to one
thousand rupees, or with both.
(3) in any case in which an offence under Sub-section (2) has been committed,
the convicting Magistrate or other authority to which he is subordinate may
direct that the mineral in respect of which the offence has been committed,
shall, together with the receptacles in which is contained, shall be
confiscated,
(4) Any rule made under any provision of this Act may provide that any
contravention thereof shall be punishable with imprisonment for a term which
may extend to six months, or with fine which may extend to one thousand
rupees, or with both, and in the case of a continuing contravention, with an
additional fine which may extent, to one thousand rupees for every day
during which such contravention continued after conviction for the first such
contravention,
Cognizance of offences 72. Notwithstanding anything contained in any rule or order relating to Criminal
Procedure Code in force in the state, no court or other authority shall take
cognizance of an offence punishable under this Act or any rule made thereunder
except upon a complaint, in writing, made by a person authorised in this behalf
by the State Government.
Bar of jurisdiction to try offences 73. No court or other tribunal or other authority inferio in status to that of a
Magistrate of the first Class shall try any offence punishable under this Act or
any rule made thereunder.
Offences to be cognizable and bailable 74. Every offence punishable under this Act shall be cognizable and bailable.
Offences by companies 75. (1) If the person committing an offence punishable under this Act or any rule
made thereunder is a company, the company the company and every person
who at the time the offence was committed was in charge of, and was
responsible to the company for the conduct of business of the company, shall
be deemed to be guilty of the offence and shall be liable to be proceeded
against and punished according1y:
Provided that nothing contained in this Sub-section shall render any such person liable to
any punishment if he proves that the offence was committed without his knowledge or that
he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in Sub-section (1), where an offence
punishable under this Act or any rule made thereunder has been committed
with the consent or connivance of any director, manager, secretary or other
officer shall be deemed to be guilt of that offence and shall) be liable to be
proceeded against and punished accordingly.
Explanation: For the purpose of this Section.
(a) “company” means any body corporate arid includes a firm or other
association of individuals;
(b) “director” in relation to a firm means a partner in the firms.
Compounding of offence 76. (1) No offence under this Act shall be compounded except in accordance with the
provisions of Sub-section (2).
(2) Any offence punishable under this Act or any rule made thereunder may,
either before or after the institution of the prosecution, be compounded by the
person authorised under Section 72 to make ‘a complaint to the Court with
respect to that, offence, on payment to that person, for credit to the State
Government of such sum as that person may specify.
Provided that in the case of an offence punishable with fine only, no such sum shall
exceed the maximum amount of fine which may be imposed for that offence.
(3) Where an offence is compounded under Sub-section (2), no proceeding or
further proceeding, as the case may be, shall be taken against the offender in
respect of the offence so compounded and the offender, if in custody, shall be
released forthwith.
CHAPTER XIV
MISCELLANEOUS
Provisions of the Act to over-ride other laws 77. Save as otherwise provided elsewhere in this Act, the provisions or this Act shall
have effect notwithstanding anything to the contrary contained in any other law
for the time being in force in the State or in any contract or instrument having
effect by virtue of any enactment or in any usage having the force of law in the
State and every such law, contract, instrument or usage, as the case may be, shall
be, to the extent of the repugnance with this Act, be void and inoperative in the
State.
Protection of action taken in good faith 78. (1) No suit, prosecution or other legal proceeding shall lie against any person for
anything which is in good faith done or intended to be done in pursuance of
the provisions of this Act or any rule or notification made thereunder.
(2) No suit or other legal proceeding shall lie against the State Government, the
competent authority or corporation for any damage, loss or injury caused or
likely to be caused by anything which is in good faith done or intended to he
done in pursuance of any provision of this Act or of any rule or notification
made thereunder.
Bar of Jurisdiction of Civil Courts 79. Save as otherwise expressly provided in this Act, no civil court shall have
jurisdiction in respect of any action taken or proposed to be taken by the
authority in. pursuance of any power conferred by or under, this Act.
Prospecting licence and mining leases to be void if in contravention of the Act 80. Any prospecting licence or mining lease granted, renewed or acquired in
contravention of the provision or this Act or any rule or order made thereunder
shall be void and or no effect
Explanation : Where a person has acquired more then one prospecting licence or mining
lease in the State and the aggregate area covered by such licences or lessees as the case may
be, exceeds the maximum area permissible under Section 7,only that Prospecting licence or
mining lease, the acquisition of which has resulted in such maximum area being exceeded
shall be deemed to be void.
Power to convict trespassers 81. Where any person trespasses into any land in contravention of the provisions of
Sub-section (1) of Section 3, such trespassers may be served with an order of
eviction by the State Government, or any authority empowered in this behalf by
that Government and the State Government or such authorised officer may, if
necessary, obtain the help of police to evict the trespassers form the land.
Power of entry and search 82. (1) The State Government may, by notification, authorise any officer by name or
by virtue of office to enter and search any place where he has reason to
believe that any mineral oil is being prospected, transported, stored, produced
otherwise than in accordance with the provisions of this Act and the rules
made thereunder, and to seize, detain or remove any or all of the petroleum in
respect of which, in his opinion, an offence under this Act has been
committed.
(2) The provisions of law for the time being in force in the State relating to
Search and seizure shall, so far as they are applicable, apply to the searches
and seizures by officers authorised under this Section.
(3) The State Government may make rules regulating the procedure of authorised
officers in the exercise of their powers under this Section subject, however, to
the provisions of Sub-section (2)
Power of Magistrate to seize any mineral etc 83. (1) Whenever any person raises, without any authority, any mineral from any
land and for that purpose brings on the land any tool, equipment, vehicle or
other thing, such mineral tool, equipment, vehicle or other thing shall be
liable to be seized by a Magistrate or other authority specially empowered by
the State Government in this behalf,
(2) Whenever any person raises, without any lawful authority, any mineral from
any land, the State Government may recover from such person the mineral so
raised or, where such mineral has already been disposed of, the price thereof,
and may also recover from such person, rent, royalty, or tax as the case he,
for the period during, which the land was occupied by such person without
any lawful authority.
Power of entry and inspection of mine or abandoned mine 84. (1) For the purpose of ascertaining the position of the working, actual or
prospective, of any mine or abandoned mine or for any other purpose
connected with this Act or the rules made thereunder, any person authorised
by the State Government in this behalf, by general or special order, may:-
(a) enter and inspect any mine or abandoned mine;
(b) survey and take measurements in mine;
(c) weigh measure or take measurement of the stocks of minerals lying at
any mine;
(d) examine any document, book register or record in the possession or
power of any person having the control, of, or connected with, any such
mine and place marks of identification thereon, and take extracts from or
make copies of such document, book, register or record;
(e) order the production of any such document book, register or record as is
referred to in clause (d, and f)
(f) examine any person having the control of or connected with any such
mine
Central 45 of 1860 (2) Every person authorised by the State Government under Sub- section (1)
shall be deemed to be a public servant within the meaning of Section 21 of
the Indian Penal Code, 1860, and every person to whom an order or summon
issued by virtue of the powers conferred by Clause (e) or Clause (f) of that
Sub-section shall be legally bound to comply with such order or summons, as
the case may be.
Recovery of certain sums as arrears of land revenue 85. (1) Any rent, royalty, tax, fee, cess or other sum due to the State Government
either under this Act or any rule made thereunder or under the terms and
conditions of any prospecting licence or mining lease may, on a certificate of
such officer as may be specified by the State Government in this behalf by
general special order, be recovered in the same manner as if it were a public
demand and every such sum, which becomes due to the Government after
the appointed day, together with the interest due thereon, shall be a first
charge on the assets of the holder of the prospecting licence or mining lease,
as the case may be.
Delegation of powers 86. (1) The State Government may, by notification, direct that any power exercisable
by it under this Act may, in relation to such matters and subjects to such
conditions, if any, as may be specified in the notification, be exercisable also
by such officer or authority subordinate to the State Government.
(2) Any rule made under this Act may confer powers and impose duties or
authorise the conferring of powers and imposition of duties upon any officer
or authority subordinate to the State Government.
Rule and notifications to be laid before state Legislative Assembly 87. (1) Every rule and every notification made by the State Government under this
Act shall be laid. as soon as may be after it is made before the Legislative
Assembly of the State while it is in session for a total period of seven 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 successive sessions aforesaid, the Legislative Assembly makes any
modification in the rule or notification or decides that the rule or notification
should not be made, the rule or notification shall have effect thereafter 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.
Existing rules to continue 88. All rules made or purporting to have been made under any enactment made by
Parliament before the commencement of the Constitution (Thirteenth Amend-
ment) Act, 1962, that is the first day of December. 1963, shall, in so far as they
relate to matters for which provision is made in this Act and are not inconsistent
therewith, be deemed to have been made under this Act as if this Act had been in
force on the day on which such rules were made and shall continue in force
unless and until they are superseded by any rule made under this Act:
Power of revision of State Government 89. The State Government may, of its own motion or on application made within the
prescribed time by an aggrieved party, revise any order made by it or any
authority subordinate to it in exercise of the power conferred on it by or under
this Act
Relaxation of rules in special cases 90. The State Government may, if it is of opinion that in the interests of mineral
development in the State it is necessary so to do, by an order, in writing, and for
reasons to be recorded, authorize, in any case, the grant, renewal or transfer of
any prospecting licence or mining lease or working of any mine for the purpose
of searching for or winning any mineral on terms and conditions different from
those laid down in the rules made under Section 15.
Validation of certain Acts 91. All acts of executive authority done, proceeding taken and sentences passed
under any enactment made by Parliament on or before the first day of December,
1963, and in force immediately before the appointed day with respect to the
regulation of mines and development of minerals in the State by Government or
by any officer of the Government or by any other authority, in the belief or
purported belief that the acts, proceedings or sentences were being done, taken or
passed under the said enactment, shall be as valid and operative as if they had
been done, taken or passed in accordance with law and no suit or other legal
proceedings shall be maintained or continued against any person whatsoever on
the ground that any such act, proceeding or sentence were not done, taken or
passed in accordance with law.
Power to make rules with retrospective effect 92. Any rule made under this Act may provide that it shall have effect from such
earlier or later date, not being a date earlier than the commencement of
provisions under which the concerned rule is made.
Provided that no person shall be prosecuted or punished for anything done at any time
prior to the date on which the rules so made were first published in the Official Gazette.
THE FIRST SCHEDULE
(See Section 10)
RATES OF ROYALTY
1. Mineral oils, petroleum and petroleum products (including Liquid petroleum gas).
(i) Petroleum Rs. 192/— per metric tonne
(ii) Natural Gas 10% of the value of NG
(iii) Gasoline from gas at well read
(iv) Oil Shale Ditto
2. Agate Rs. 55/— per tonne
3. All precious and Semiprecious stones 20% of the sale price
(except agate and diamond) at pit’s month
4. Apatite and Rock phosphate
(a) Ores with more than Rs. 43/— per tonne
27% 205
(b) Ores with 20% F205 Rs. 25/— per tonne
to: 27% P205
(c) Ores with less than Rs. 10/— per tonne
20%: P205
5. Asbestos
(a) Chrysotile Rs. 285/— per tonne
(b) Amphibole Rs. 15/— per tonne
6. Barytes
(a) White (including snow Rs. 20/— per tonne
white and super snow
white)
(b) 0ff-colour Rs. 10/— per tonne
7. Bauxite Rs. 10/— per tonne
8. Cadmium Rs. 16/— unit Pc of cadmium
metal per tonne ore and on
provata basis.
9. Calcite Rs. 15/— per tonne
10. China clay; also called Kaolin
(including ball clay) and white shale
(a) Crude Rs. 8/— per tonne
(b) Processed (including washed) Rs. 35/— per tonne
11. Chromites (both lumpy non- friable ore
and concentrates)
(a) Containing 48% Cr2O3 and above Rs. 60/— per tonne
(b) Containing less than 48% Cr2O3 Rs. 25/— per tonne
and more than 40% Cr2O3
(c) Containing 30% to 40% Cr2O3 Rs. 20/— per tonne
(d) Containing less than 30% Cr203 Rs. 5/— per tonne
12. Coals
(i) Group-I Coals.
(a) Coking coal steel grade-I, Rs. 7/— per tonne
steel grade-II, washery grade-I
(b) Hand picked coal Rs. 7/— per tonne
(ii) Group-IT, Coals
(a) Coking coal washery grade-II, Rs. 6/50 per tonne
coking coal washery grade-III
(b) Semi-coking coal grade-I Rs. 6/50 per tonne
Semi-coking coal grade-II
(c) Non-coking grade-A Rs. 6/50 per tonne
Non -coking coal grade-B
(d) Ungraded R.O.M. Coal Rs. 6/50 per tonne
(iii) Group-III coals.
(a) Coking coal washery grade-IV Rs. 5/50 per tonne
(b) Non-coking coal grade-C Rs. 5/50 per tonne
(iv) Group-IV coals; Non-coking, Rs. 5/50 per tonne
coal grade-D, Non-coking coal
grade-E
(v) Group-V coals; Non-coking coal Rs. 2/50 per tonne
grade-F, Non-coking coal grade-G
(vi) Coal Group-VI coats produced in Rs. 5/— per tonne
Andra Pradesh (Singareni colleries Ltd.)
Explanation For the purpose of this item the specification of each such grade of coal shall
be prescribed by the State Government.
13. Copper ore Rs. 5/— per unit Pc. metal
per tonne of ore.
14. Corrundum Rs. 110/— per tonne
15. Diamond 15% of sale price at pit’s month
16. Diaspore Rs. 30/— per tonne
17. Dolomite Rs. 8/— per tonne
18. Felspar Rs. 6/— per tonne
19. Fire clay including plastic pipe, lithographic Rs. 5/-per tonne
and natural (pozolanic) clay
20. Flurospar (also called Fluorite)
(a) Containing 85% CaF2 or more Rs.110/- per tonne
(b) Containing 70% CaF2 or more Rs. 75/— per tonne
but less than 85% CaF2
21. Gold Rs. 2/— one gram gold per tonne
of ore
22. Garnet (abrasive) Rs. 15/— per tonne
23. Graphite
(a) with80%orrnorefixed carbon Rs. 75/— per tonne
(b) with40%ormorefixed carbon but Rs. 40/— per tonne
less than 80% fixed carbon
(c) with 20% or more fixed carbon but Rs. 15/ — per tonne
less than 40% fixed carbon
(d) with less than 20% fixed carbon Rs. 10/— per tonne
24. Gypsum Rs. 8/— per tonne
25. Illmenite Rs. 10/— per tonne
26. Iron (i) Ore Lumps
(a) with 65% Fe or more Rs. 6/— per tonne
(b) with 62% Fe or more but less than 65% Fe. Rs. 3/50 per tonne
(c) with 60% Fe or more but less than 62% Fe Rs. 2/50 per tonne
(d) with less than 60% Fe Rs. 21— per tonne (ii) ore fines
(A) Fines (including natural fines produced
incidental to mining and sizing of ore)
(a) with 65% Fe or more Rs. 3/50 per tonne
(b) with 62% Fe or more
Rs. 2/— per tonne but less than
65% Fe
(c) with less than 62% Fe Rs. 1/50 per tonne
(B) Concentrates prepared by beneficiation and/or Rs. 0.50 per tonne
concentration of low grade ore containing
40% Fe or less
27. Kyanite Andalusite Rs. 40/— per tonne
28. Lead ore Rs. 3/— per unit Pc of metal per
tonne of ore
29. Limeshell (including Calcareous) Rs. 10/- per tonne
30. Limestone (including lime Kankar) Rs, 10/— per tonne
31. Magnesite Rs. 10/— per tonne
32. Maganese dioxide
(a) (containing 78 percent or more of MnO2 Rs. 45/ — per tonne
and 4 percent or below Fe)
(b) 46% Mn and above Rs, 15/— per tonne
(c) 35% Mn and above but below 46% Mn Rs. 9/ — per tonne
(d) Below 35% Mn but above 25% Mn Rs. 6/— per tonne
(e) 25% Mn or below Rs. 2/— per tonne
33. Mica
(a) crude mica Rs. 10/— per 100 kgs
(b) Trimmed mica of qualities other than Rs. 60/— per tonne
heavy stained, Dense stained or spotted
second quality
(c) Trimmed mica of heavy stained, Dense- Rs. 30/— per tonne
stained or spotted second quality
(d) Waste and scrap mica Rs. 4/— per 100 kgs
(e) Waste rounds Rs. 5/— per 100 kgs
34. Monazite Rs. 40/— per unit Pc of nickel
metal per tonne of ore.
35. Nickel Ore Rs. 2/— per unit Pc ore
36. Ochre Rs, 6/— per tonne
37. Pyrites Rs. 0.25 p per unit Pc Sulphure
per tonne of ore.
38. Pyrophyllite Rs. 10/— per tonne
39. Quartz and silica sand and moulding sand Rs. 5/— per tonne
40. Quartzite Rs, 5/— per tonne
41. Rutile Rs. l00/— per tonne
42. Sand for stowing Rs.0.40p per tonne
43. Salenite Rs. 25/— per tonne
44. Silimanite Rs. 50/— per tonne
45. Silver Rs.150/— per kg of metal
46 .Slate Rs. 18/— per kg of metal
47. Talc, Steatite and Soapstone
(a) insecticide grade Rs. 10/— per tonne
(b) other than insecticide grade Rs. 30/— per tonne
48. Tungsten Ore Rs. 12/— per unit Pc of WO3
per tonne of ore
49. Vermiculite Rs. 8/— per tonne
50. Wollastonite Rs. 30/— per tonne
51. Zinc ore Rs. 6/— per unit Pc of Zn
metal per tonne of ore
52. Zircon Rs. 90/— per tonne
53. All other minerals not here no-before 10% of the sale price
specified at pit’s mouth
.
THE SECOND SCHEDULE
(See Section .11)
DEAD RENT
(1) The rates of dead rent applicable to the leases other than those obtained for supply of
raw material to the industry owned by the concerned lessee:
(RATES OF DEAD RENT IN RUPEES PER HECTARE PER ANNUM)
Category of the Mining
Lease
1st
year of
the
lease
2nd to 5th
year of the
lease
6th to 10th
year of
the lease
11th year
of the
lease &
onwards
1 2 3 4 5
1. Lease area upto 50
hectares
Nil 30 60 90
2. Lease area upto, 50
hectares, but not
exceeding 100
hectares
Nil 40 80 120
3. Lease are a above 10
hectares
Nil 60 100 150
(2) In the case of lease obtained for the supply of raw material for the industry
owned by the concerned lessee, the rates of dead rent would he applicable as
given in respect of item No. 1 above irrespective of the lease area.