Petroleum (Production) Act (Cap. 65:05)

1. Short title.

2. Vesting of property in petroleum in the State.

3. Licences to search for and get petroleum. 4, Power to make regulations.

5. Power to grant ancillary rights for facilitating the search tor and getting of petroleum.

6. Limitation on power of granting rights.

7. Power to appoint Commissioners. lS. Appfa.aU1JJ1-s for rigbta. 9, Consideration of applications by Commissioners.

10. Provisions as to compensation.

11. Costs of application, l:l. lit'fPt<t ..,_r $""1.it nf r-ight

13. Appeals to the Full Court.

14. Oil mining leases.

15. Savings. Ao Act to vest in the State the property in petroleum and natural gas 41 ort939 within Guyana and to make provision with respect to the search for and getting or petroleum and natural gas, and for purposes connected with the matters aforesaid, [18rn NOVEMBER, 1939]

1. This Act may be cited as the Petroleum (Production) Act. Short title.

2. (1) The property in petroleum existing in its natural condition Vesting of in strata in Guyana is hereby vested in the State. and the State shall :~i have the exclusive right of searching for and getting such petroleum. ihcStatc. n (2) For the purpose of this Act the expression "petroleum" includes any mineral oil or relative hydrocarbon and natural gas existing in il~ uaturnl condition in e;tra.tn, but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation. (3) In this Act references to a person having the right to search for petroleum shall include the right to make a geological and geophysical examination of land and to bore the same, and references Cap. 65:l)S Petroleum (Production) 4 ------ to the getting of petroleum shall include references to the working, carrying away, storiug, trea.ling and cunverting of petroleum, l.1c:encos to 3. (1) The President may, on behalf of the State, grant to such IClll¢h for persons ai. he shall think fit, licences to search for and get petroleum. 11.mJ¥1,I "'""'- (I of 19121 (2) Any such licence shall be granted for such consideration (whether by way of royalty or otherwise) as the President may determine, and upon such other terms and conditions as the President shall think dt. (3) The Commissioner of Geological Surveys and Mines shan. as soon as may be after a licence has beenlit-anted under this section, C".ause a notice of the fact to he published in the Gazette stating the name of the licensee and the situation of the area in respect of which the licence has been granted. l'O"l'H h) 4, (l) Tho Minist.:or mn)', i,ubjc<:t i:o nil'gadvo resoh1tion of the mak, National Assembly, make- regulations generally for the better rtgUJatlons. [19 of 1967 carrying out of the provisions and subject as aforesaid shall, before l of 1972] granting any licence under this Act, make regulations prescribing- (u) the manner in which. and the pc:nons by whom, appli~tkm'S. fot \\een.ce,g, undtr tbii A,;:,t ma'j be made; (b) the r... to be paid on any such application: (c) the conditions as to the size and shape of areas in respect of which licences may be granted; (d) model clauses wWch shall, unless the President thinks. fit to modify or exclude them in any particular case, be ine.orromted. in any such licence, and different regulations may be made for different kinds of Ucences. (2) The Minister shall prescribe the royalties to be paid on tho products won in mining operations under this Act. Powcc10 5. (l) Where any facility, right or privilege is required in order t""'"" r.:'nl!>~ that petroleum may be properly and c.onveniently searched for and for tacilitatina got by any person to whom a licence under section 3 has ~n the: search ror granted (hereinafter referred to as "the liC(l:nsee") and the proper and getting ofpt:ttO\t\11'1\,, and effu:u:ut ""'1<:hlug for and !!,Otting of the pettolown i, unduly hampered by the inability or failure of the licensee to obtain such right, facility or privilege (hereinafter referred to as "an ancillary right"), such ancillary right may be conferred on the licensee in the manner and subject to the provisions hereinafter appearing, (2) In particular, but without prajudice to the generality of :n.1bacxnion (I), such nnoillu.ry righta shall include- Petroleum (Production) Cap. 65:05 5 (a) a right to enter upon land and to search for and get petroleum; (b) ll righ.L to utio ond ooovpy bmd for th,;:, or◊otion of ou,;ih buildings, the laying and maintenance of such pipes, and the construction of such other works as may be required for the purpose of searching for and getting petroleum; {c) a right to obtain a supply of water or other substances in connection with the search for or getting of petroleum; (d)_ a right to dispose of water or other liquid matter obtained while searching for or getting petroleum. (3) An ancillary right may be granted to a. licensee either at the time a licence under section 3 is granted to him or at any sub~ = sequent time.

6. An ancillary right shall not be granted under this Act unless Limitation it is shown that it is not reasonably practicable to obtain the right of in question by private arrangement for any of the following reasons- rlgb\s. (u) thut the persons with power to grant the right an;: numerous or have conflicting interests; (b) that the persons with power to grant the right, or any of them, cannot be ascertained or cannot be found; (c) that the persons from whom the right must be obtained, or any of them, ha\le not the necessary powers of disposition, whether by reason of defect of title, Iega1 disability or other.- wise; (d) that the person with power to grant the right unreason¥ ably refuses to grant it or, after reasonable consideration has been offered, demands tenns which, having regard to the circumstances. are unreasonable.

7. (1) For the purpose of determining any question relating to Po~to applications for ancillary rights under this Act, the Minister shall ~m~ appoint a Commi\",'<>ion consisting of th.Tee pMe.ons- (hereinafter m ~ referred to as "the Commissioners"} which shall have jurisdiction to fl of 19721 inquire into and determine the same. When appointing Cornmis¥ sioners, the Minister shall have regard to the fact that one at least of the Cornmis:1ioners shall have knowl\¾\ge a.nd experience of land conditions in Guyana. If at any time any Commissioner is for any reason unable to perform the duties of his office, the Minister may appoint another person to serve in his place and such temporary appointment mny be either for a fixed period or for an indefinite period. (2) One of the person, appointed shall be a judge of the High 6 Cap, 65:05 Petroleum (Production) Court and be shall be chairman of the CotJ...:.Jssion. (3) Each Commissioner shall he appointed for a period of five years. (4) The provisions of sections 5, 6, 9, 10, 11, 12, 13, 14 and 16 of \ht Comtniss.ioni of Enquiry Act sha\\, mutaii.r mutandis, appiy to the conduct of any proceedings before the Commissioners. (5) No Commissioner shall take any part, save a.s an interested party appearing before the Commission, in the proceedings of the Commis..'!.inn in any applicatinn in which he has ally direct or indirect personal interest. (6) There may be paid to any Gorn.missioner, from moneys provided by Parliament such remuneration as the Minister shall determine. Application& 8. (1) Any applicant for a licence, or any licensee, who is desirous forri&h~ of obtaining an .ancillary right and who considers that the circum~ O of 19721 sla111.:e1:1 1:1.R: such llial such au ancillary eight can be granted may send to the Commissioner of Geologk:al Surveys and Mines an application for the grant of ,uch a right. Sll!lh a\')\'>licatlon ,hall be made In duplicate. (2) An application under this section shall set forth the cir• cumstances alleged to justify the grant of the right, and shall be in such form, and .accompanied by such information verified in such manner. as the Commissioner of Geololrical Surveys and Mines may diroct. (3) Tho Commis.sioner of Geological Surveys and Mines shall consider the application and, if it appears to be in order, he shall- (aJ 111eonecopytnrusotnce; (b) transmit tho other copy to the chairman of the Com• mission; and (r.) cau1.e to be published in the Gazette and in one local daily newspaper a notice stating the name of the applicant, the nature of the right claimed and a sufficient description of the area in which it is desired to exercise the right. C.Onsideration 9. (1) The Commissioners, if satisfied that the requirements of ~ applicadonf this Act have been complied with in the case of the applicant and Cornrois■i"nen that it is expedient in the interest of Guyana that the right applied fur tibou1d bu granll:;(J to him, may, by order, grant Uu; fight on :mch tenns and subject to such conditions, and for such period as the Commissioners may think fit, and upon such an order being made the right speciJied in the order shall, subject to the provisions Petroleum lYroaumom ....ttinafter contained, vest in the applicant. (2) In determining whether to grant any right for which applica- tion has been made or what terms and conditions, if any, shall be imposed upon the grant of such a right, the Commissioners shall have regard, among other considerations, to the effect on the amenities of the locality of the proposed use and occupation of the land in respect of which the appHcation is made.

10. (I) Where an application for the grant of a right is granted Provision& the Commissioners shall, in default of agreement, determine the asto~ amount of compensation that shall be paid by the applicant jn ~i967J respect of the acquisition of the right and the person or persons to whom it is to be paid, either at the time when the application is granted or at any subsequent time, and the proportions thereof, being proportfons which are adequate, to be so paid to any such nersons. resnectivelv. (2) The compensation to be paid in re,pect of any right shall be assessed by the Commissioners on the basis of what would be fair and reasonable between a willing grantor and a willing grantee, having regard to the conditions Subject to which thill right is or is to be granted, and after that amount is assessed the Commissioners shall make a sufficient additional allowance of not Jess than twenty-flve per cent on account of the acql:lisition of the right being compulsory. (3) The Commissioners may impose as a condition on the grant of any right that any compensation payable in respect thereof shall be paid or, with the_ consent of the person to whom payment is to be made1 that security to the satisfaction of the Commissioners for the payment thereof shall be given before the right is com- menced to be exercised. (4) Where the person to whom any compensation is payable oonnot be found or ae.c&rtained the compensation i.:hall be paid into the registry of the Supreme Court. U. The costs incurred by the applicant in connection with the Cos~ of application shall not be ordered to be pa.id by an}' per~on from whom application, a right is sought to be obtained; and the costs so incurred by each such person shall, unless the Commissioners are satisfied that an unconditional offer in writing was made by the applicant to that pcnon of n 3U01 Q!.l compensation equal to or greater than the amo-unt of any compensation awarded to him by the Commissioners, be ordered to be paid by the applicant. ti. An anl,,illary I"ight grau~ under this Act &hall not cortfer on E:lJ'Q!;( or the person to whom it is granted any greater or other power than if ~~ of LR,0. 1/1973 Cap. 65:05 Pelro/eum (Production) lho right had been pnted by a penon with power to grant the right or relieve the grant.. from any obligation or liability to whioh be would have been subje<t had the right been granted by such a person. Appe,11b lo l3. (I) An appeal in respect of any amount on any queition ot the Full law or of fact shall lie from any order made by the Commissioners. """"· to the Full Court of the High Court. c. 3:02 (2) The provisions of Order 46 of the Rules of the High Court.. shalli mutatis TfUl.tandi.s, be applicable to all such appeals. (3) The decision of the Full Court shall be final. ...... Oil tnmlna \ljof l'Xi7}

14. The provisionll of sections 3 to 12 (inclusive) and ~ection 13 ( l) and (2) shall, mutatis mutandls, apply in relation to leases for the- purpose of searching for and getting petroleun1 thereby demised as. those provisions apply in relation to licences to search for and get petroleum, subject to the foUQ'\Vlng mOOiftca:tio~, that is to i;ay- (a) the substitution, for the word "may" in section 10(3). of the word "shall01 ; (b) the substitution, for the words 0 is commenced to t,e. exercised" in the said sub.section, of the words "vests In tbe- applicant... S.Yillp. 15. (l) Nothing in this Act shall be construed as conferring, or as. enabling the Commissioners to 1;onfer, on any person, whelher or acting on behalf the Stale or not, any right which he does not enjoy apart from this Act to enter on or interfere with land. (2) NothinJ in this Act shall be construed OS iml)Osing any liability on any person where in the course of mining or other lawfu\ operations petroleum is set free.