Udayavni Special

Petroleum Min proposes changes in law to include hydrogen in mineral oil


PTI, Jun 17, 2021, 4:31 PM IST

Source: Unsplash

New Delhi: The petroleum ministry has proposed amendments to existing law to include cleaner sources of energy like hydrogen within the definition of ‘mineral oils’ for which the government gives out licence to explore and produce.

Seeking stakeholder comments, the ministry said the Oilfields (Regulation and Development) Amendment Bill 2021 proposes to amend the present Act to ”create opportunities for exploration, development and production of next-generation cleaner fuels and mitigate regulatory challenges and risks.” It also proposes a new definition of ‘mineral oils’ by including within its ambit modern and cleaner sources of energy like hydrogen.

Conventionally, mineral oil is understood to mean hydrocarbons in various forms including natural gas and petroleum oil.

In the aftermath of the COVID-19 pandemic and the Paris Climate Change Agreement, the global community is committed to developing and using clean energy sources. Hydrogen gas is one such clean source of energy, which can be produced, distributed and regulated in conjunction with natural gas, it said.

”Presently, the Oilfields (Regulation & Development) Act, 1948 deals with ‘mineral oils’ as understood in the conventional sense. In order to facilitate the development and production of alternative/derivative clean energy sources that are being or may be developed in future, this Bill seeks to redefine ‘mineral oil’,” the draft said.

The term as defined in the Bill includes not merely hydrocarbons but also the next-gen fuels viz. ‘other gases which are capable of being used as fuels occurring in association with mineral oils or can be produced from mineral oils such as hydrogen’.

The Bill also seeks to foster investment in the exploration and production of oil and gas by offering a lease on stable terms and enabling the government to prescribe a compensation mechanism to protect the investment.

The compensation shall be payable in case of suspension, revocation or cancellation of the lease or in case of restriction of access to the leased area.

The Bill also seeks to explicitly enumerate the power of the government to prescribe rules for the extension of the period of the lease, the maximum or minimum area of the lease, a mechanism for determination of the economic life of the oilfield, terms for merger or combination of leases and resolution of disputes.

It provides for the imposition of fines of up to Rs 1 crore for the first contravention of provisions of any rules. Subsequent contraventions will attract a fine of up to Rs 10 lakh per day.

The Bill also seeks to empower the government to recover royalty, cess, lease or licence fee, penalty payment under the law, the draft said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

1,987 new COVID-19 cases, 37 deaths in Karnataka

Women’s hockey enters QFs for 1st time in 41 years

K’taka-Ker SRTC, private buses to stay off roads for a week from Aug 1

Glad that I have learnt from my mistakes and capitalised on opportunities after that: Pant

Terrorist arrested as NIA raids 15 locations in J-K

Bommai must constitute his Cabinet at the earliest: Siddu

Tokyo Olympics: Sindhu loses to Tai Tzu in semifinals, to fight for bronze now


Related Articles More

Terrorist arrested as NIA raids 15 locations in J-K

Lalan Singh replaces RCP Singh as JD(U) president

Over Rs 15.8 Cr spent on advertisements about Pusa bio-decomposer: Delhi govt to Assembly

Babul Supriyo to leave politics; to quit as MP

Assam CM wants neutral agency to probe border clash with Mizoram

MUST WATCH

DC G Jagdish talked covid case in udupi

Accused should be punished

COMEDY KHILADIGALU’S RAKESH POOJARY ON HIS BBM DEGREE

WHY AGRICULTURE IS A BETTER PROFESSION THAN ANY OTHER JOBS?

Cattle thief at koppa

Latest Additions

1,987 new COVID-19 cases, 37 deaths in Karnataka

Women’s hockey enters QFs for 1st time in 41 years

K’taka-Ker SRTC, private buses to stay off roads for a week from Aug 1

Glad that I have learnt from my mistakes and capitalised on opportunities after that: Pant

Terrorist arrested as NIA raids 15 locations in J-K

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.