Section 14. Protection of action taken in good faith

1[(5) In respect of early commencement of commercial production from contracts areas awarded under Hydrocarbon Exploration and Licensing Policy in respect of bids invited on or after the coming into force of this paragraph, all the provisions of concessional rates of royalty applicable for crude oil shall apply mutatis mutandis to condensates.] (1) PRODUCTION FROM AREAS OUTSIDE NEW EXPLORATION LICENSING POLICY (NELP) REGIME A. NOMINATION BLOCKS (i) from 1.4.1993 to 31.3.1996: @ Rs. 539.20 Per Metric Tonne (ii) from 1.4.1996 to 31.3.1998: @ Rs. 603.95 Per Metric Tonne B. PRODUCTION FROM AREAS AWARDED ON NOMINATION BASIS TO NATIONAL OIL COMPANIES (NOCS), EXPLORATION BLOCKS AWARDED TO PRIVATE/ JOINT VENTURE (PRIVATE /JOINT VENTURE) CONTRACTORS PRIOR TO NELP AND ONLAND DISCOVERED FIELDS AWARDED TO PRIVATE/JOINT VENTURE CONTRACTORS: (i) from 1.4.1998 to 31.3.2002 : Monthly average rate per Metric Tonne as per Statement appended: (ii) With effect from 1.4.2002: - (a) On land areas: @ 20% of Well Head Price. (b) Shallow water offshore areas (upto 400 Mtr water depth): @ 10% of Well Head Price. (c) Deep water offshore areas (> 400 Mtr. Water depth): @ 5% of well head price during first 7 years after commercial production and normal rates as applicable to Shallow water areas (upto 400 Mtr. Water depth) during other periods. (d) Reduced rates of royalty, as may be notified by the Government from time to time, will be levied on production from fields under Enhanced Oil Recovery (EOR)/ Improved Oil Recovery (IOR). C. PRODUCTION FROM OFFSHORE DISCOVERED FIELDS AWARDED TO PRIVATE /JOINT VENTURE CONTRACTORS: At the rates as specified in respective Production Sharing Contracts (PSCs). 14. Protection of action taken in good faith .—No suit, prosecution or other legal proceeding whatever shall lie against any person for anything which is in good faith done or intended to be done under this Act. 1. Subs. by Act 20 of 1984, s. 3, for the original section 10. 2. Subs. by Act 29 of 1998, s. 3, for "under sub-section (4) of section 6A" (w.e.f. 3-9-1998). 3. Ins. by Act 6 of 2025, s. 9 (w.e.f. 15-4-2025). 4. Subs. by s. 10, ibid. , for "mine" (w.e.f. 15-4-2025). 5. Subs. by s. 11, ibid ., for "mining lease" (w.e.f. 15-4-2025). 6. Subs. by s. 11, ibid ., for "mine" (w.e.f. 15-4-2025). 7. Subs. by the A. O. 1950, for s. 13 (w.e.f. 26-1-1950). 8. Ins. by Act 6 of 2025, s. 12 (w.e.f. 15-4-2025). 1[THE SCHEDULE ( See section 6A) RATES OF ROYALTY 1. CRUDE OIL: 2[(5) Concessional rates of royalty in case of early commercial production from contract areas awarded under Hydrocarbon Exploration and Licensing Policy: For contract areas awarded under Hydrocarbon Exploration and Licensing Policy in respect of bids invited on or after the coming into force of this paragraph, concessional rates of royalty shall apply if there is early commencement of commercial production as below: (A) In case of on-hand blocks: If commercial production is commenced within four years from the effective date as specified in the respective contract: - (a) in Category—I Basins: 11.25% - (b) in Category—II Basins: 10% - (c) in Category—III Basins: 8.75% (B) In case of shallow water blocks; If commercial production is commenced within four years from the effective date as specified in the respective contract: - (a) in Category—I Basins: 6.75% - (b) in Category—II Basins: 6% - (c) in Category—III Basins: 5.25% - (C) In case of deep water blocks; If commercial production is commenced within five years from the effective date as specified in the respective contract: No royalty shall be payable for the first seven years from the date of commercial production and shall be payable thereafter as below: - (a) in Category—I Basins: 4.5% - (b) in Category—II Basins: 4% - (c) in Category—II Basins: 3.5% - (D) In case of ultra deep water blocks: If commercial production is commenced within five years from the effective date specified in the respective contract: No royalty shall be payable for the first seven years from the date of commercial production and shall be payable thereafter as below: - (a) in Category—I Basins: 1.8% - (b) in Category—II Basins: 1.6% - (c) in Category—III Basins:1.4%.] 1. Ins. by S.O. 367(E), dated 14.1.2019. 2. Ins. by S.O. 1597, dated 11.4.2019. 2. CASING HEAD CONDENSATE: (2) PRODUCTION FROM AREAS UNDER NELP REGIME: \At the rates determined in accordance with the provisions under respective Production Sharing Contracts (PSCs). 1[(3) Production from contracts awarded under Bid Round-II of Discovered Small Field Policy, 2015:] 2[(a) 12.5 per cent of the value of condensate receivable from the buyer in respect of production from on-shore contracts. (b) 10 per cent of the value of condensate receivable from the buyers in respect of production from off-shore shallow water (up to 400 meters water depth) contracts. (c) 5 per cent of the value of condensate receivable from the buyers in respect of production from deep water offshore (>400 meters water depth) contracts for the first seven years after commercial production in the contract area and normal rates as applicable to shallow water (up to 400 meters water depth) contracts during remaining periods.] 3[(4) In respect of production form contracts awarded under Bid Round-II of Discovered Small Field Policy and Hydrocarbon Exploration and Licensing Policy (HELP) all the provisions of royalty on crude oil shall apply mutatis mutandis to condensates."] 1. Ins. by S.O. 173 (E), dated 15.1.2016 and further substituted by S.O. 367(E), dated 14.1.2019. 2. Ins. by S.O. 173(E), dated 15.1.2016. 3. Ins. by S.O. 367(E), dated 14.1.2019.