In force · As amended up to 2026-08
5. Cls. (a) and (b) omitted by s. 32 and the Third Sch., ibid. (w.e.f.1-6-1958).
6. Subs. by s. 32 and the Third Sch., ibid ., for "mineral resources" (w.e.f.1-6-1958).
7. Subs. by Act 6 of 2025, s. 6, for "oil wells" (w.e.f. 15-4-2025).
8. Subs. by s. 6, ibid ., for "oil" (w.e.f. 15-4-2025).
9. Subs. by s. 6, ibid ., for "mines" (w.e.f. 15-4-2025).
10. Ins. by s. 6, ibid . (w.e.f. 15-4-2025).
11. Subs. by Act 39 of 1969, s. 2, for cl. (i) (w.e.f. 1-1-1968).
12. Subs. by Act 6 of 2025, s. 6, for "mined, quarried, excavated or collected" (w.e.f. 15-4-2025).
13. Subs. by s. 6, ibid ., for certain words (w.e.f. 15-4-2025).
14. Ins. by s. 6, ibid. (w.e.f. 15-4-2025).
(l) the safety at oilfields including safety mechanisms, standards and protocols for conduct of mineral oil operations, protection of persons and infrastructure such as terminals, installations, other structures and devices, and mineral oils;
(m) the sound management of mineral oils in accordance with good international petroleum industry practices including obligations of lessees towards protection of environment during operations and while abandoning, decommissioning and undertaking site restoration activities;
(n) the unitisation of leases across States, Union territories and offshore leases, where there is reservoir continuity or connectivity, or for efficient exploration, development or production of mineral oils;
(o) promote and facilitate adoption of measures for reducing carbon and greenhouse gas emissions and decarbonising operations including but not limited to use of oilfields for other purposes, such as, production of hydrogen, carbon capture utilisation and storage or coal gasification;
(p) reporting of carbon and greenhouse gas emissions related to, arising out of, or resulting from, mineral oil operations;
(q) promote and facilitate development of comprehensive energy projects at oilfields, including planning, development, installation, sharing and use of infrastructure for carrying out mineral oil operations and solar, wind or other form of renewable energy projects;
(r) any other matter which is required to be, or may be made by rules, or in respect of which provision is to be made under this section.]
1[6A. Royalties in respect of mineral oils. —(1) The holders of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any mineral oil[2] [produced] or collected by him from the leased area after such commencement, at the rate for the time being specified in the Schedule in respect of that mineral oil.
(2) The holder of a mining lease[3] [or petroleum lease] granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall pay royalty in respect of any mineral oil[2] [produced] or collected by him from the leased area at the rate for the time being specified in the Schedule in respect of that mineral oil.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), no royalty shall be payable in respect of any[4] [mineral oils] which is unavoidably lost or is returned to the reservoir or is used for drilling or other operations relating to the production of[5] [mineral oils].
6[(4) The Central Government may, by notification in the Official Gazette, amend the Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral oil with effect from such date as may be specified in the notification and different rates may be notified in respect of same mineral oil 2[produced] or collected from the areas covered by different classes of[7] [petroleum leases]:
Provided that the Central Government shall not fix the rates of royalty in respect of any mineral oil so as to exceed twenty per cent. of the sale price of the mineral oil at the oilfields or the oil well-head, as the case may be.
1. Ins. by Act 39 of 1969, s. 3 (w.e.f. 1-1-1968).
2. Subs. by Act 6 of 2025, s. 7, for "mined, quarried, excavated" (w.e.f. 15-4-2025).
3. Ins. by s. 7, ibid. (w.e.f. 15-4-2025).
4. Subs. by s. 7, ibid. , for "crude oil, casing-head condensate or natural gas" (w.e.f. 15-4-2025).
5. Subs. by s. 7, ibid ., for "petroleum or natural gas, or both" (w.e.f. 15-4-2025).
6. Subs. by Act 29 of 1998, s. 2, for sub-section (4) (w.e.f. 3-9-1998).
7. Subs. by Act 6 of 2025, s. 7, for "mining leases" (w.e.f. 15-4-2025).
(5) If the Central Government, with a view to encourage exploration in off-shore areas, is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally, either absolutely or subject to such conditions as may be specified in the notification, mineral oil produced from such areas from the whole or any part of the royalty leviable thereon.]
Source: India Code