Petroleum and other Minerals Development Act , 1960

PART I. Preliminary.

1 Short title.

1.—This Act may be cited as the Petroleum and Other Minerals Development Act, 1960.

PART II. Petroleum.

Chapter I. Interpretation (Part II).

2 Definitions (Part II).

2.—(1) In this Part—

“ancillary rights” has the meaning assigned to it by section 3 of this Act;

“the Board” means the Mining Board established by section 33 of the Minerals Development Act, 1940 (No. 31 of 1940);

“exploration licence” has the meaning assigned to it by section 8 of this Act;

“land” includes foreshore and land covered with water;

“the Land Commission” means the Irish Land Commission;

“land purchase annuity” means a land purchase annuity payable under the Land Purchase Acts to the Land Commission;

“the Minister” means the Minister for Industry and Commerce;

“the operative date” means the date of the passing of this Act;

“petroleum” includes any mineral oil or relative hydrocarbon and natural gas and other liquid or gaseous hydrocarbons and their derivatives or constituent substances existing in its natural condition in strata (including, without limitation, distillate, condensate, casinghead gasoline and such other substances as are ordinarily produced from oil and gas wells) and includes any other mineral substance contained in oil and natural gas brought to the surface with them in the normal process of extraction, but does not include coal and bituminous shales and other stratified deposits from which oil can be extracted by distillation;

“petroleum lease” has the meaning assigned to it by section 13 of this Act;

“petroleum prospecting licence” has the meaning assigned to it by section 9 of this Act;

“petroleum well” means a boring or other excavation in the earth's crust made for the purpose of extracting petroleum;

“prescribed” means prescribed by regulations;

“regulations” means regulations made by the Minister under this Part;

“rent” includes any periodical payment in the nature of rent;

“reserved area licence” has the meaning assigned to it by section 19 of this Act;

“royalty rent” means a rent calculated by reference to the quantity, price or value of petroleum gotten;

“State petroleum” means petroleum, the property in which was immediately before the operative date vested in the State;

“surface” when used in relation to land, includes any buildings, works, or thing erected, constructed or growing on such land;

“working” when used in relation to petroleum, includes digging, searching for, boring for, getting, raising, taking, carrying away, storing and treating petroleum, and cognate words shall be construed accordingly;

“working facilities acquisition order” has the meaning assigned to it by section 23 of this Act;

“working facilities permit” has the meaning assigned to it by section 26 of this Act;

“working facilities (State land) permit” has the meaning assigned to it by section 27 of this Act.

(2) In this Part, references to the licensee under a licence granted under this Part shall, where the context so permits, be construed as including references to the executors, administrators and assigns of the licensee.

3 “Ancillary rights”.

3.—The following rights shall be ancillary rights for the purposes of this Part, and, in this Part, the expression “ancillary rights” shall be construed accordingly, that is to say:—

(a) a right to let down the surface, including a right to let down superincumbent or adjacent strata up to and including the surface;

(b) a right of air-way, shaft-way, or surface or underground way-leave, or other right for the purpose of access to or conveyance of petroleum or machinery or the ventilation or drainage or working of petroleum wells;

(c) a right to do any of the following things—

(i) to construct, operate and maintain roads and railways for the purpose of ingress and egress to or from any land specified in a petroleum lease,

(ii) to build, maintain and operate on any such land such roads and railways as may be needed for the purpose of carrying on the exploration, prospecting, working, drilling and development of petroleum under such land, and for the purpose of access to any petroleum well, and the conveyance of petroleum from any petroleum well,

(iii) for all or any of the purposes aforesaid to use and occupy land and to exercise any rights in or over land or water;

(d) a right to lay pipe-lines, and to erect pumping and storage stations, loading racks, terminals and other facilities for the transport of petroleum;

(e) a right to use and occupy the surface of land for the excavation of reservoirs and settling ponds, laying of pipes, erection of facilities for pumping, storage, production of petroleum or manufacture of by products, or other works, or for dwellings for persons employed in connection with the working of petroleum or with any such works as aforesaid;

(f) a right to a supply of water or other substances in connection with the working of petroleum, including a right to dig or drill wells;

(g) a right to dispose in a particular manner of water or other liquid matter obtained from petroleum wells or any by-product works;

(h) a right to dispose in a particular manner of waste products obtained in connection with the working of petroleum;

(i) a right to dam or divert any river or watercourse, including an artificial watercourse;

(j) a right to divert sewers, watermains and pipes;

(k) a right to divert a public road, street or way, or a private way, and to substitute for any existing bridge another bridge on a different site;

(l) a right to divert a railway or a tramway;

(m) a right to demolish buildings which impede the proper working of petroleum.

Chapter II. Vesting of property in petroleum in the Minister.

4 Vesting of State petroleum in the Minister.

4.—On the operative date, all State petroleum shall vest in the Minister and his successors.

5 Vesting of other petroleum in the Minister.

5.—(1) On the operative date, the property in all petroleum which is not State petroleum shall vest in the Minister and his successors.

(2) Compensation shall be payable by the Minister in respect of all petroleum vested in the Minister and his successors by subsection (1) of this section, and the provisions of Chapter VI of this Part shall apply in respect of such compensation.

Chapter III. Exploration and development of petroleum

6 Restrictions on searching for and getting petroleum.

6.—(1) No person, other than the Minister, shall search for petroleum in any area in the State unless—

(a) he is the licensee under an exploration licence, a petroleum prospecting licence or a reserved area licence which is for the time being in force and includes that area, or

(b) he is the lessee under a petroleum lease which has not expired and which includes that area.

(2) No person, other than the Minister, shall get, raise, take or carry away petroleum found in any area in the State unless he is the lessee under a petroleum lease which has not expired and which includes that area.

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

(4) In a prosecution for an offence under this section, a certificate purporting to be signed by an officer of the Minister and to certify any one or more of the following matters—

(a) that the person charged was not on a specified day the holder of an exploration licence which was then in force and included a specified area,

(b) that the person charged was not on a specified day the holder of a petroleum prospecting licence which was then in force and included a specified area,

(c) that the person charged was not on a specified day the holder of a reserved area licence which was then in force and included a specified area,

(d) that the person charged was not on a specified day the lessee under a petroleum lease which had not then expired and included a specified area,

shall, without proof of the signature of the person purporting to sign such certificate or that he was an officer of the Minister, be evidence until the contrary is proved of such of those matters as are purported to be certified in and by such certificate.

7 Undertaking to grant exploration licences and petroleum prospecting licences.

7.—(1) The Minister may enter into an undertaking with any person to grant to him an exploration licence or a petroleum prospecting licence or both those licences.

(2) Where the Minister enters into an undertaking under this section it shall be lawful for him to carry out the undertaking.

8 Exploration licences.

8.—(1) The Minister may grant to any person such licence (in this Part referred to as an exploration licence) as is authorised by this section.

(2) Every exploration licence shall be granted upon such terms and conditions and in respect of such areas as the Minister thinks fit and specifies therein.

(3) On the granting of the exploration licence the licensee shall pay to the Minister such consideration therefor as the Minister, with the concurrence of the Minister for Finance, may determine.

(4) Every exploration licence shall be expressed and operate to vest in the licensee the exclusive right of searching for petroleum in the area to which the licence extends.

(5) (a) An exploration licence shall not confer on the licensee any right to enter on land.

(b) Paragraph (a) of this subsection shall not be construed as preventing the licensee under an exploration licence from entering on land with the consent of the owner of the surface of that land.

(6) Every exploration licence shall contain an indemnity clause whereby the licensee indemnifies the Minister against any claim arising out of the exercise by the licensee of his rights under the licence.

(7) In this section “searching for petroleum” means the doing by the licensee under an exploration licence of all such things as are in his opinion necessary or desirable for the purpose of ascertaining the character, extent or value of the petroleum in the area to which the licence extends and, in particular and without prejudice to the generality of the foregoing power, includes exploring for petroleum by using geological, geophysical, geochemical and topographic examination, making borings, sinking pits, removing water from old workings and taking and removing reasonable quantities of petroleum and other minerals for analysis, test, trial or experiment.

9 Petroleum prospecting licences.

9.—(1) The Minister may, subject to subsection (2) of this section, grant to any person a licence (in this Part referred to as a petroleum prospecting licence) in respect of petroleum under any land.

(2) The Minister shall not grant a petroleum prospecting licence in respect of petroleum under any land unless, at least twenty-one days before doing so, he has—

(a) published, in one or more newspapers circulating in the locality, notice of his intention to do so, and

(b) deposited in the office of the Geological Survey, Dublin and in one or more places in the locality, a map showing the boundaries of such land.

(3) Every petroleum prospecting licence shall be granted upon such terms and conditions as the Minister thinks fit and specifies therein.

(4) On the granting of a petroleum prospecting licence, the licensee shall pay to the Minister such consideration therefor as the Minister, with the consent of the Minister for Finance, may determine.

(5) Every petroleum prospecting licence shall be expressed and operate to authorise the licensee, during the currency of such period as is specified in the licence, to enter on the land specified in the licence and there do all such things as the licensee considers necessary or desirable for the purpose of ascertaining the character, extent or value of the petroleum under such land and, in particular and without prejudice to the generality of the foregoing power, for the purpose aforesaid, to make geological, geophysical, geochemical and topographic examinations and to make borings, sink pits, remove water from old workings and take and remove reasonable quantities of petroleum and other minerals for the purpose of analysis, test, trial or experiment.

(6) Every petroleum prospecting licence shall contain an indemnity clause whereby the licensee indemnifies the Minister against any claim or demand whatsoever in respect of the land the subject of the licence or in any way arising out of the exercise by the licensee of the rights conferred on him by the licence.

(7) Every petroleum prospecting licence shall contain a clause requiring the licensee to exercise the rights conferred on him by the licence in such manner as not to interfere unnecessarily with the amenities of the area to which the licence relates.

(8) (a) A petroleum prospecting licence shall not confer on the licensee a right to sell or otherwise dispose of any petroleum found under the land specified in the licence.

(b) Nothing in paragraph (a) of this subsection shall be construed as preventing the licensee under a petroleum prospecting licence from taking and removing reasonable quantities of petroleum for the purposes of analysis, test, trial or experiment.

10 Undertaking by Minister to grant petroleum lease.

10.—(1) The Minister may enter into an undertaking to grant a petroleum lease to take effect from such date, as may be specified in the petroleum lease.

(2) Every such undertaking as is mentioned in subsection (1) of this section shall be in such form as the Minister, with the consent of the Minister for Finance, shall determine and may specify the terms and conditions (if any) upon which the petroleum lease which is the subject of the undertaking shall be granted.

(3) Whenever the Minister enters into an undertaking to grant a petroleum lease under this section, it shall be lawful for the Minister to carry out the undertaking in accordance with the terms thereof.

11 Right of Minister to explore and prospect for petroleum.

11.—(1) Where there is not in relation to any area an existing exploration licence, a petroleum prospecting licence, a reserved area licence or a petroleum lease—

(a) the Minister may exercise in relation to that area all the powers which could be exercised by him if he were in fact the holder of an exploration licence in relation to that area,

(b) the Minister, with the consent of the Minister for Finance, may, subject to subsection (2) of this section, exercise, in relation to that area, all the powers which could be exercised by him if he were in fact the holder of a petroleum prospecting licence in relation to that area.

(2) The Minister shall not exercise the powers conferred on him by paragraph (b) of subsection (1) of this section in relation to any area unless, at least twenty-one days before doing so, he has—

(a) published, in one or more newspapers circulating in the locality, notice of his intention to do so, and

(b) deposited in the office of the Geological Survey, Dublin and in one or more places in the locality, a map showing the boundaries of that area.

12 Compensation for damage or nuisance caused by licensee under a petroleum prospecting licence or by Minister exercising powers under section 11 (1) (b).

12.—Whenever damage to the surface of land or to mineral deposits or to water supplies or a nuisance is caused whether directly or indirectly, either—

(a) by the exercise by the licensee under a petroleum prospecting licence of his rights under the licence, or

(b) by exercise by the Minister of the powers conferred on him by paragraph (b) of subsection (1) of section 11 of this Act,

the licensee or the Minister (as the case may be) shall be liable to pay compensation for such damage or nuisance, and the provisions of Chapter VII of this Part shall apply in respect of such compensation.

13 Petroleum leases.

13.—(1) If, in the opinion of the Minister, it is in the public interest that petroleum under specified land should be granted by way of lease to any person, the Minister may demise such petroleum to that person by way of lease (in this Part referred to as a petroleum lease) for such term as the Minister thinks proper.

(2) The following provisions shall apply in relation to every petroleum lease—

(a) such lease shall be made subject to the payment to the Minister of such moneys, whether by way of fine or preliminary payment or by way of rent (including a royalty rent) or by any or all of such ways as the Minister, with the concurrence of the Minister for Finance, shall think proper and shall agree upon with the lessee;

(b) such lease shall contain such (if any) covenants, conditions and subsidiary agreements on the part of the Minister or of the lessee as the Minister shall consider proper or desirable in the public interest and shall agree upon with the lessee;

(c) such lease may contain a clause providing for the renewal or successive renewals thereof, either unconditionally or subject to such conditions as shall be stated in such lease;

(d) the Minister for Finance shall be a party to such lease.

14 Right of Minister to work and dispose of petroleum.

14.—(1) It shall be lawful for the Minister, with the consent of the Minister for Finance, at any time, subject to the terms of any licence or lease granted under this Part, to work petroleum in any area or areas and to sell or otherwise dispose of petroleum obtained by such working.

(2) Before commencing to work petroleum in exercise of the powers conferred on him by subsection (1) of this section, the Minister shall—

(a) specify the area or areas (each of which shall not be less than two square miles or more than five square miles in extent) within which he proposes to exercise those powers,

(b) publish in the Iris Oifigiúil a notice stating the locality and extent of such area or areas.

(3) The Minister may authorise any person in writing to exercise for and on behalf of the Minister the powers conferred on the Minister by this section and any act done by such person in pursuance of such authority shall for the purposes of this Part be deemed the act of the Minister.

(4) Where the Minister sells or disposes of petroleum under this section, the proceeds of such sale or disposal shall be paid into the Exchequer in such manner as the Minister for Finance shall direct.