Offshore Areas Operating Right Rules, 2024
[16th
October 2024]
PREAMBLE
In exercise of the powers
conferred by section 35 of the Offshore Areas Mineral (Development and
Regulation) Act, 2002 (17 of 2003) and in supersession of the Offshore Areas
Mineral Concession Rules, 2006 except as respects things done or omitted to be
done before such supersession, the Central Government hereby makes the
following rules, namely:-
CHAPTER 1 PRELIMINARY
Rule 1. Short title and commencement.
(1)
These rules may be called the Offshore Areas
Operating Right Rules, 2024.
(2)
They shall come into force on the date of
their publication in the Official Gazette.
Rule 2. Definitions.
(1)
In these rules, unless the context otherwise
requires, -
(a)
"Act" means the Offshore Areas
Mineral (Development and Regulation) Act, 2002 (17 of 2003);
(b)
"auction premium" means the amount
payable by the lessee under sub-rule (2) of rule 13 of the Offshore Areas
Mineral (Auction) Rules, 2024;
(c)
"Form" means form appended to these
rules;
(d)
"illegal mining" means any
reconnaissance operation or exploration operation or production operation
undertaken by any person or company in any offshore area without holding an
operating right as required under sub-section (1) of section 5 of the Act or,
outside the boundaries of the offshore area for which the operating right has
been granted:
Provided that violation of
any rules, other than the rules made under clause (pa) of sub-section (2) of
section 35 of the Act, within the licence area or lease area, by a licensee or
a lessee shall not be construed as illegal mining;
(e)
"incidental mineral extraction"
means any extraction or excavation of minerals from an offshore area while
undertaking any infrastructure project or other works by the Government or any
person duly authorised by the Government to undertake such project or works and
shall not include extraction by a holder of operating right in the area for
which the operating right has been granted to him;
(f)
"lease area" means the area for
which a production lease has been granted in accordance with the Act and the
rules made thereunder;
(g)
"licence area" means the area for
which a composite licence has been granted in accordance with the provisions of
the Act and the rules made thereunder;
(h)
"run-of-mine" means the raw
unprocessed or uncrushed material in its natural state obtained after dredging
or mining, from the mineralised zone of a lease area;
(i)
"Schedule" means the Schedule
appended to these rules; and
(j)
"threshold value in respect of atomic
minerals" means the grade of atomic mineral, specified as percentage of
weight of the prescribed substances contained in the ore, as specified and
notified in Schedule A of the Atomic Mineral Concession Rules, 2016 made under
the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) as
the threshold value for the particular atomic mineral occurring as such, or in
association with one or more minerals.
(2)
The words and expressions used herein but not
defined herein but in the Act shall have the same meaning as assigned to them
in the Act or the rules made thereunder.
Rule 3. Application.
These rules shall apply to
all minerals in the offshore areas, except-
(i)
mineral oils and hydrocarbons as specified in
sub-section (1) of section 3 of the Act; and
(ii)
atomic minerals having grade equal to or
greater than the threshold value in respect of atomic minerals.
Rule 4. Saving of rules made under other enactments.
Nothing in these rules shall
affect the provisions of rules made under the Atomic Energy Act, 1962 (33 of
1962) in respect of licensing relating to minerals specified in Part B of the
First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957
(67 of 1957).
CHAPTER 2 AVAILABILITY OF OFFSHORE AREAS FOR
GRANT OF OPERATNG RIGHT
Rule 5. Availability of offshore areas for grant of operating right.
(1)
No offshore area shall be available for grant
of any operating right unless the availability of the area for grant is
notified by the administering authority in the Official Gazette specifying a
date from which such area shall be available for grant under section 10 of the
Act.
(2)
The Central Government shall consult the
Ministry of Defence; Ministry of Environment, Forest and Climate Change;
Ministry of Home Affairs; Ministry of External Affairs; Department of Space; Department
of Telecommunications; Department of Fisheries under the Ministry of Fisheries,
Animal Husbandry and Dairying; Ministry of Earth Sciences; Ministry of Ports,
Shipping and Waterways; Ministry of Petroleum and Natural Gas; Ministry of
Science and Technology; Ministry of New and Renewable Energy; Department of
Atomic Energy and any other Ministry or Department as may be considered
necessary by the Central Government, before notifying any offshore area under
sub-rule (1).
(3)
Where a reconnaissance operation or
exploration operation is to be undertaken by any agency specified or notified
under the proviso to sub-section (1) of section 5 of the Act, no notification
under sub-rule (1) shall be required:
Provided that the
administering authority shall issue an order thirty days prior to the
commencement of the operations giving details of the offshore area and period
for which the reconnaissance operation or exploration operations are to be
undertaken and a copy of such order shall be endorsed to the Ministries or
Departments as specified under sub-rule (2).
CHAPTER 3 OPERATING RIGHTS TO GOVERNMENT,
GOVERNMENT COMPANIES OR CORPORATIONS
Rule 6. Grant of operating rights to Government, Government companies or corporations.
(1)
The administering authority may grant
operating rights for any offshore area reserved under sub-section (1) of
section 8 of the Act, or any part thereof, to the Government, or a Government
company or a corporation, in accordance with sub-section (3) of section 8 of
the Act.
(2)
The Central Government shall consult the
Ministries or Departments as specified under sub-rule (2) of rule 5 before
grant of any operating rights under sub-rule (1).
(3)
All production leases granted to the
Government, Government company or corporation for minerals under sub-section
(3) of section 8 of the Act shall be for a period of fifty years.
(4)
All composite licences granted to the
Government, Government company or corporation for minerals under sub-section
(3) of section 8 of the Act shall be for a period of three years:
Provided that the
administering authority may, on an application made by the licensee within a
period of three months before the lapse of the said period, for reasons to be
recorded in writing and subject to such conditions as may be specified, grant
an extension for a period of two years to the licensee for satisfactory
completion of the exploration operations:
Provided further that no
further extension shall be granted upon expiry of the extended period, if any,
granted under the first proviso.
(5)
All the terms and conditions, including
payment of amounts under the Act, applicable to a licensee or a lessee,
selected in accordance with the Offshore Areas Mineral (Auction) Rules, 2024
shall, except for the procedure for grant of composite licence or a production
lease, apply mutatis mutandis to the Government, or a Government company, or a
corporation which has been granted composite licence or a production lease
under sub-section (3) of section 8 of the Act.
CHAPTER 4 TERMS AND CONDITIONS OF OPERATING
RIGHTS
Rule 7. Terms and conditions of a composite licence.
(1)
An exploration licence deed of the composite
licence containing the terms of the composite licence shall be executed in Form
I with a successful bidder under subrule (4) of rule 18 of the Offshore Areas Mineral
(Auction) Rules, 2024.
(2)
Every composite licence granted under these
rules, shall, in addition to any other conditions that may be specified
therein, be subject to the following conditions, namely:-
(a)
for mineral block, the licensee may win and
carry, for purposes other than commercial purposes-
(i)
any quantity of such minerals within the
limits specified in column (3) of the Schedule without any payment;
(ii)
any quantity of such minerals not exceeding
the limits specified in column (4) of the Schedule on payment of royalty
specified in the First Schedule to the Act in respect to those minerals:
Provided that if any
quantity in excess of the quantities referred to in this clause is won and
carried away, the administering authority shall recover the value of the excess
quantity of minerals won and carried away and may initiate action under section
23 of the Act;
(b)
with the prior approval of the administering
authority, the licensee may carry away quantities of minerals in excess of the
limits specified in the Schedule, on payment of royalty specified in the First
Schedule to the Act, for chemical, metallurgical, beneficiation or ore-dressing
and other test purposes;
(c)
if the licensee is convicted of illegal
mining and there are no orders of any court of law suspending the operation of
the order of such conviction, the Central Government may, without prejudice to
any other proceedings that may be initiated under the Act or the rules made
thereunder, terminate such composite licence and forfeit the performance security
submitted by the licensee, after giving such licensee an opportunity of being
heard and for reasons to be recorded in writing and communicated to the
licensee;
(d)
the licensee shall take all necessary steps
and measures for enabling the natural rehabilitation of the seabed affected by
exploration operations, including any measures as may be specified by the
Central Government;
(e)
the licensee shall comply with the provisions
of the Act and the rules made thereunder including rules made under section 19A
of the Act and directions issued under section 21 of the Act;
(f)
the licensee shall make available all
exploration data, reports, samples, including the data pertaining to quantum of
such samples won and extracted, and other relevant information collected by him
pursuant to an exploration operation, and shall submit the following reports,
namely:-
(i)
quarterly report within a period of thirty
days after the close of the quarter;
(ii)
annual report within a period of sixty days
after the close of the year;
(iii)
any other report as may be specified in the
composite licence, to the Geological Survey of India, administering authority,
Indian Bureau of Mines and such other authority as may be specified;
(g)
the licensee shall not share any data
collected during the course of exploration operations with any third party for
storage, processing or interpretation without the prior approval of the
administering authority;
(h)
the licensee shall allow any officer
authorised by the administering authority or the Central Government to enter
upon any vessel, platform, installation or any other infrastructure in the
licence area for the purpose of inspecting the same;
(i)
the licensee shall maintain an accurate and
true account of all the expenses incurred by it on exploration operations, and
also the quantity and other particulars of all minerals obtained during such
operations and their dispatch;
(j)
the licensee shall maintain a daily log of
data collected during the course of exploration operations on the vessel or
installation whereby such operations are being carried out in the licence area
and shall allow any officer authorised by the Central Government or the
administering authority in this behalf to inspect such data logs and the
licensee shall also comply with any other reporting requirements specified in
the composite licence;
(k)
the licensee shall have the right to deploy
vessels, drones and bring upon the licence area all such temporary buoys,
structures, steam and other engines, machineries, conveniences, and effects as
may be deemed proper and necessary for effectively carrying on its exploration
operations or for the employment of workmen thereon;
(l)
the licensee shall comply with all applicable
laws and regulations pertaining to movement and deployment of vessels,
installations, machineries, engine, platforms, drones and other installations
or implements in the offshore areas;
(m)
the licensee shall ensure that any vessel,
installation, machinery, engine, platform, drone and other installations or
implements that have been deployed by it in the offshore areas have on board,
and use equipments, such as satellite tracking equipments and voyage data
recorder, that monitors and reports their activity;
(n)
the licensee shall, within a period of six
months after the expiry or termination of the composite licence or date of
abandonment of operations or surrender of excess area in accordance with the
first proviso to sub-rule (7) of rule 18 of the Offshore Areas Mineral
(Auction) Rules, 2024, whichever is earlier-
(i)
take all necessary steps enabling the natural
rehabilitation of the seabed affected by exploration operations, including any
measures as may be specified by the Central Government; and
(ii)
remove expeditiously at his own cost, all
vessels, structures, buoys, engines, machineries, implements, equipments and
other property and effects erected or brought by the licensee on or in the
licence area together with all minerals won by the licensee:
Provided that the provisions
of this clause shall not apply, in the case of the area over which the licensee
has been granted a production lease on or before the expiry or termination of
the composite licence, as the case may be;
(o)
the licensee shall give at least two months
notice prior to commencement of the exploration operation to the administering
authority, the Indian Bureau of Mines and Naval Headquarters (Directorate of
Naval Intelligence), Ministry of Defence, to ensure that such operations do not
interfere with any naval exercise in the area;
(p)
in case foreign domiciled entities or foreign
entities or contractors, personnel, vessels or equipments are engaged or
deployed, for undertaking exploration operations, prior approval shall be
obtained from the Government authorities, including any specific approvals
mandated by the Central Government; any data collected and work carried out
shall be under the supervision and control of Indian representatives of the
licensee, who shall ensure appropriate security safeguards;
(q)
the licensee shall ensure that the data
generated during exploration operations, including any geological data, is
processed, by foreign entities or contractors, in India and such processed and
unprocessed data may be imparted to any foreign entity only with prior approval
of the administering authority;
(r)
prior to their deployment all vessels, to be
deployed and installations to be erected, for exploration operations by the
licensee himself or contracted companies, shall undergo and clear security
inspection of the Indian Navy under the aegis of the Flag Officer
Commanding-in-Chief of the concerned Naval Command and Flag Officer, Offshore
Defence Advisory Group and a clear one months notice shall be given by the
licensee to the said officers to facilitate such inspection and clearance;
(s)
all vessels to be deployed for exploration
operations by the licensee shall obtain prior clearance from the Directorate
General of Shipping in terms of the Merchant Shipping Act, 1958 (44 of 1958)
and the rules made thereunder;
(t)
intimation regarding award of contracts to
contracted companies or persons along with relevant details of the contracts,
including the name of the contracted entity, duration of the contract, subject
matter of the contract, nature of equipment employed and data to be collected,
if any, shall be forwarded to the Naval Headquarters (Directorate of Naval
Intelligence), Ministry of Defence, along with a copy to the administering
authority, before commencement of the operations by the licensee, providing six
monthly long case on vessels deployment by operating companies;
(u)
visa, and such other permissions as may be
required under the law for the time being in force, shall have to be obtained
from the Government authority for all foreign personnel on board the vessel;
(v)
the licensee shall take all precautionary
measures for safety and security of all vessels and equipments deployed for
exploration operations and the personnel onboard;
(w)
the licensee shall, for issuing the marine
safety warnings, immediately inform the Flag Officer, Offshore Defence Advisory
Group and the administering authority, the location indicating co-ordinates of
all vessels, existing and under construction offshore installations or
platforms, equipments and machineries deployed within the licence area, and
thereafter its new location as and when it is shifted;
(x)
the licensee shall not interfere with any
right of way in recognised sea lanes for the purposes of navigation or any
other purpose as may be authorised by the Central Government;
(y)
the licensee shall allow reasonable
facilities of access to the licensees or lessees over any area which is
comprised in or adjoins or is reached by the licence area held by the licensee:
Provided that no substantial
hindrance or interference shall be caused by the licensees or lessees to the
operations of the licensee and fair compensation, as may be mutually agreed
upon or in the event of disagreement as may be decided by the administering
authority, shall be paid by them to the licensee for any loss or damage
sustained by the licensee;
(z)
the licensee shall use its best efforts to
avoid obstructions to or interference with any petroleum operations or any
operations pertaining to offshore wind power projects or such other operations
being carried out or proposed to be carried out by an operator, duly authorised
by the Government authority, within the licence area;
(za)
failure on the part of the licensee to fulfil any of the terms and conditions
of the Act and the rules made thereunder or under the composite licence shall
not give the Central Government or the administering authority any claim against
the licensee or be deemed a breach of the composite licence, in so far as such
failure is considered by the Central Government to arise from a force majeure
and in the event of any delay by the licensee to fulfill any of the terms and
conditions of the Act and the rules made thereunder or under the composite
licence on account of a force majeure, the period of such delay shall be added
to the period fixed by these rules or the composite licence;
Explanation.- For the
purposes of this clause, the expression "force majeure" means act of
god, war, insurrection, riot, civil commotion, strike, earthquake, storm, tidal
wave, flood, lightning, explosion, fire, or any other happening which the
licensee could not reasonably prevent or control;
(zb)
the licensee shall ensure that all personnels, vessels, installations,
equipments and infrastructure deployed for the purposes of exploration
operations in the licence area shall, at all times during the term of the
composite licence, be insured by the licensee in accordance with such
regulatory requirements, as applicable under any law for the time being in
force, and such other terms and conditions as may be specified by the Central
Government or the administering authority;
(zc)
the Central Government shall at all times have the right of pre-emption of the
minerals won from the licence area in respect of which the composite licence
has been granted:
Provided that the average
sale price as published by the Indian Bureau of Mines prevailing at the time of
pre-emption shall be paid to the licensee for all such minerals;
(zd)
the licensee shall not carry on or allow to be carried on, any exploration
operations at any point within a distance of five hundred metres from any
telecommunication cables, offshore wind turbine generators, offshore power
sub-stations, oil platform or pipelines, underwater archaeological sites,
defence installations or any port area, except under and in accordance with the
prior approval of the competent authority and any officer authorised by the administering
authority or the Central Government in this behalf and the said distance of
five hundred metres shall be measured from the outer edge of the relevant
vessel, structure or installation, as applicable;
(ze)
the Central Government, or any lessee or person authorised by it in that behalf
by the administering authority or the Central Government, shall have the right
to enter into or upon the licence area and lay upon or maintain, repair or
replace, over or through the same, any pipelines, cables, offshore wind turbine
generators, offshore power sub-stations or any other purpose authorised by the
Central Government or the administering authority, as the case may be:
Provided that no substantial
hindrance or interference shall be caused to, or with, the liberties, powers
and privileges of the licensee, and fair compensation, as may be mutually
agreed upon, or in the event of disagreement, as may be decided by the
administering authority, shall be made -
(i)
to the licensee for all loss or damage or
substantial hindrance or interference caused to the licensee by such other
lessee or person authorised by the administering authority or the Central
Government, as the case may be;
(ii)
by the licensee for all loss or damage or
substantial hindrance or interference caused to such other lessee or person
authorised by the administering authority or the Central Government, as the
case may be;
(zf)
the licensee shall forward to the Directorate General of Shipping, Director
General, Indian Coast Guard, administering authority and any other Government
authority, without delay, a report of any accident causing death or serious
bodily injury or serious injury to property or seriously affecting or
endangering life or property which may occur in the course of its exploration
operations;
(zg)
the licensee shall not employ, in connection with the exploration operations,
any person who is not an Indian national except with prior approval of the
administering authority;
(zh)
the licensee shall not carry on his operations in a manner that would injure
any person or prejudicially affect any installations, vessels, works, property
or rights of other persons and no offshore area shall be used by the licensee
for exploration operations for works or purposes not included in the composite
licence;
(zi)
the licensee shall ensure the safety of vessels, installations or any other
implements in the licence area, to the satisfaction of the administering
authority or any other Government authority, as the case may be; and
(zj)
the licensee shall work and carry on the exploration operations in a proper,
skilful and workman-like manner.
(3)
In addition to the conditions specified in
sub-rule (2), a composite licence may contain following conditions, as the
administering authority or the Central Government as may deem fit to impose,
namely:-
(i)
indemnity to the Central Government and
administering authority against claims of third parties;
(ii)
measures, as specified by the Central
Government, pertaining to prevention and control of pollution and conservation
of marine ecosystem in protected areas including, marine national parks, marine
sanctuaries or any other area, as may be specified by the Central Government;
(iii)
restrictions on exploration operations in any
area prohibited by any competent authority;
(iv)
the reporting of accidents;
(v)
conditions regarding entry in certain parts
of offshore areas;
(vi)
facilities to be given by the licensee for
working other minerals, mineral oil and hydrocarbon resources in the licence
area or adjacent areas; and
(vii)
any other conditions specified in the tender
document for auction for grant of composite licence.
(4)
The administering authority may, either with
the prior approval of the Central Government or at the instance of the Central
Government, impose such further conditions as may be necessary in the interest
of conservation and development of minerals.
(5)
In the case of breach of any condition
imposed on any licensee under the Act and the rules made thereunder, the
Central Government, by order in writing, terminate the composite licence and
forfeit, in whole or part, the performance security submitted by the licensee
and take such other action in accordance with the Act and the rules made
thereunder:
Provided that no such order
shall be made without giving the licensee a reasonable opportunity of being
heard and without recording the reasons in writing.
Rule 8. Terms and conditions of a production lease.
(1)
The production lease granted by way of a
production lease deed to-
(a)
a successful bidder under sub-rule (7) of
rule 10 of the Offshore Areas Mineral (Auction) Rules, 2024; or
(b)
the holder of a composite licence under
sub-rule (9) of rule 18 of the Offshore Areas Mineral (Auction) Rules, 2024,
who has made an application for grant of production lease under clause (b) of
sub-rule (6) of rule 18 of the Offshore Areas Mineral (Auction) Rules, 2024 in
Form II, shall be, in each case, in Form III.
(2)
Every production lease shall be subject to
the following conditions, namely:-
(a)
the lessee shall pay, for every year of the
production lease period, such yearly fixed rent at the rates specified in the
Second Schedule to the Act, and if the production lease permits the working of
more than one mineral in the same area, the Central Government shall not charge
separate fixed rent in respect of each mineral:
Provided that the lessee
shall be liable to pay the fixed rent or royalty in respect of each mineral,
whichever is higher;
(b)
the lessee shall also pay for any area used by
it for the purposes of production operations, surface rent and other applicable
charges, fees, taxes, cess, duties and levies, applicable for such area, as may
be specified or imposed by the Central Government;
(c)
the lessee shall commence production operations
within a period of two years, as specified under clause (c) of section 14 of
the Act, from the date of execution of the production lease deed and shall
thereafter conduct such operations in a proper, skilful and workman-like
manner;
Explanation.- For the
purposes of this clause, "production operations" shall include
deployment of any vessel, erection of buoys, operation of engines or
machineries, implementation of equipments, construction of artificial island or
platform and premises in the lease area or any other operation undertaken for
the purpose of winning of minerals;
(d)
the lessee shall not carry on or allow to be
carried on, any production operations at any point within a distance of five
hundred metres from any telecommunication cables, offshore wind turbine
generators, offshore power sub-stations, oil platform or pipelines, underwater
archaeological sites, defence installations or any port area, except under and
in accordance with the prior approval of the competent authority and any officer
authorised by the administering authority or the Central Government in this
behalf and the said distance of five hundred metres shall be measured from the
outer edge of the relevant vessel, structure or installation, as applicable;
(e)
the lessee shall keep accurate and true
accounts showing the quantity and other particulars of -
(i)
all minerals obtained and dispatched from the
lease area;
(ii)
waste material excavated from the lease area;
(iii)
the number and nationality of persons
employed therein;
(iv)
complete plans of the lease area, and shall
allow any officer authorised by the Central Government or administering
authority in this behalf to examine at any time any accounts, plans, data logs
and records maintained by him and shall furnish the administering authority with
such information and returns as it or any officer authorised by it in this
behalf may require; and
(v)
any other reporting requirements specified in
the production lease;
(f)
the lessee shall keep accurate records of all
excavations, pits and drillings made by the lessee in the course of production
operations carried on by the lessee under the production lease and shall allow
any officer authorised by the Central Government or administering authority to
inspect the same and such records shall contain the following particulars,
namely:-
(i)
the subsoil and strata below the seabed
through which such excavations, pits or drillings pass;
(ii)
details of any mineral encountered; and
(iii)
such other particulars as the Central
Government or administering authority may require;
(g)
the lessee shall comply with all applicable
laws and regulations pertaining to movement and deployment of vessels,
installations, machineries, engines, platforms, drones and other installations
or implements in the offshore areas;
(h)
the lessee shall ensure that any vessel,
installation, machinery, engine, platform, drone and other installations or
implements that have been deployed by it in the offshore areas have on board,
and use equipment, such as satellite tracking equipment and voyage data
recorder, that monitors and reports their activity;
(i)
the lessee shall allow any officer authorised
by the administering authority or the Central Government to enter upon any
vessel, platform, installation or any other infrastructure in the lease area
for the purpose of inspecting the same;
(j)
the Central Government shall at all times
have the right of pre-emption of the minerals won from the lease area in
respect of which the production lease has been granted:
Provided that the average
sale price as published by the Indian Bureau of Mines prevailing at the time of
pre-emption shall be paid to the lessee for all such minerals;
(k)
the lessee shall store and maintain accounts
properly within the lease area of the unutilised or non-saleable sub-grade ores
or minerals for future beneficiation;
(l)
the lessee shall take all necessary steps and
measures enabling the natural rehabilitation of the seabed affected by
production operations, including any measures as may be specified by the
Central Government;
(m)
the lessee shall comply with the provisions
of the Act and the rules made thereunder including rules made under section 19A
of the Act and directions issued under section 21 of the Act;
(n)
the lessee shall not carry on his operations
in a manner that would injure any person or prejudicially affect any
installation, vessel, work, property or right of other persons and no offshore
area shall be used by the lessee for production operations for works or
purposes not included in the production lease;
(o)
the lessee shall not interfere with any right
of way in recognised sea lanes for the purposes of navigation or any other
purpose authorised by the Central Government;
(p)
the lessee shall allow reasonable facilities
of access to any licensees or lessees over any area which is comprised in or
adjoins or is reached by the lease area held by the lessee:
Provided that no substantial
hindrance or interference shall be caused by the licensees or lessees to the
operations of the lessee and fair compensation, as may be mutually agreed upon
or in the event of disagreement, as may be decided by the administering
authority, shall be paid by them to the lessee for any loss or damage sustained
by the lessee;
(q)
the lessee shall use its best efforts to
avoid obstructions to or interference with any petroleum operations or any
operation pertaining to offshore wind power projects or such other operations
being carried out or proposed to be carried out by an operator, duly authorised
by the Government authority, within the lease area;
(r)
the Central Government, or any lessee or
person authorised by it in that behalf by the administering authority or the
Central Government, shall have the right to enter into or upon the lease area
and lay upon or maintain, repair or replace, over or through the same, any
pipelines, cables, offshore wind turbine generators, offshore power
sub-stations or any other purpose authorised by the Central Government or the
administering authority, as the case may be:
Provided that no substantial
hindrance or interference shall be caused to, or with, the liberties, powers
and privileges of the lessee, and fair compensation, as may be mutually agreed
upon, or in the event of disagreement, as may be decided by the administering
authority, shall be made -
(i)
to the lessee for all loss or damage or
substantial hindrance or interference caused to the lessee by such other lessee
or person authorised by the administering authority or the Central Government,
as the case may be;
(ii)
by the lessee for all loss or damage or
substantial hindrance or interference caused to such other lessee or person
authorised by the administering authority or the Central Government, as the
case may be;
(s)
the lessee shall at his own expense, erect,
maintain, display and keep in repair all notices or floaters or signage or
buoys, marking the boundary of the lease area to the satisfaction of the
administering authority and other concerned Government authorities, including
the Indian Coast Guard and the Indian Navy;
(t)
the lessee shall maintain daily logs of data
collected during the course of production operations on the vessel or
installation whereby such operations are being carried out in the lease area
and shall allow any officer authorised by the Central Government or the
administering authority in this behalf to inspect such data logs and the lessee
shall also comply with any other requirements specified in the production
lease;
(u)
the lessee shall make available all
production data, reports, samples, including the data pertaining to number of
persons engaged, geological and geophysical data relating to production fields,
engineering surveys, investigation of atomic minerals, quantum of minerals won
and extracted, and other relevant information collected by him pursuant to a
production operation, and shall submit the following reports, namely:-
(i)
annual report within a period of sixty days
after the close of the year;
(ii)
any other report as may be specified in the
production lease, to the Geological Survey of India, administering authority,
Indian Bureau of Mines and such other authority as may be specified;
(v)
the lessee shall not share any data collected
during the course of production operations with any third party for storage,
processing or interpretation without the prior approval of the administering
authority;
(w)
the lessee shall pay compensation in
accordance with the law for the time being in force for the damage, injury or
disturbance which may be caused by him and shall indemnify and keep
indemnified, the administering authority and the Central Government against all
claims which may be made by any person or persons in respect of any such
damage, injury or disturbance and all costs and expenses in connection
therewith;
(x)
in case foreign domiciled entities or foreign
entities or contractors, personnels, vessels or equipments are engaged or
deployed, for undertaking production operations, prior approval shall be
obtained from the Government authorities, including any specific approval
mandated by the Central Government, and any data collected and work carried out
shall be under the supervision and control of Indian representatives of the
lessee, who shall ensure appropriate security safeguards;
(y)
the lessee shall ensure the safety of
vessels, installations or any other implements in the lease area, to the
satisfaction of the administering authority or any other Government authority,
as the case may be;
(z)
the lessee shall ensure that data generated
during the production operations, including any geological data, is processed,
by foreign entities or contractors, in India and such processed and unprocessed
data may be imparted to any foreign entity only with prior approval of the
administering authority;
(za)
the lessee shall give at least two months notice prior to commencement of the
operations to the administering authority, the Indian Bureau of Mines and the
Naval Headquarters (Directorate of Naval Intelligence), Ministry of Defence, to
ensure that such operations do not interfere with any naval exercise in the
area;
(zb)
prior to their deployment, the lessee shall ensure that all vessels to be
deployed and installations to be erected in the lease area by the lessee or by
the contracted companies, shall undergo and clear naval security inspection of
the Indian Navy under the aegis of the Flag Officer Commanding-in-Chief of the
concerned Naval Command and Flag Officer, Offshore Defence Advisory Group and
clear one months notice shall be given by the lessee to the aforesaid officers
to facilitate such inspection and clearance;
(zc)
all vessels to be deployed for production operations by the lessee shall obtain
prior clearance from the Directorate General of Shipping in terms of the
Merchant Shipping Act, 1958 (44 of 1958) and the rules made thereunder;
(zd)
the lessee shall ensure that intimation regarding award of contracts to
contracted companies or persons along with relevant details of the contracts,
including the name of the contracted entity, duration of the contract, subject
matter of the contract, nature of equipment employed and data to be collected,
if any, shall be forwarded to the Naval Headquarters (Directorate of Naval
Intelligence), Ministry of Defence, along with a copy to the administering
authority, before commencement of the operations by the lessee, providing six
monthly long case on vessels deployment by operating companies;
(ze)
visa, and such other permissions as may be required under the law for the time
being in force, shall have to be obtained from the Government authority for all
foreign personnel on board the vessel;
(zf)
the lessee shall take all precautionary measures for safety and security of all
vessels and equipments deployed for production operations and the personnel
onboard;
(zg)
the lessee shall, for issuing the marine safety warnings, immediately inform
the Flag Officer, Offshore Defence Advisory Group and the administering authority,
the location indicating co-ordinates of all vessels, existing and under
construction offshore installations or platforms, equipments and machineries
deployed within the lease area, and thereafter its new location as and when it
is shifted;
(zh)
the lessee shall forward to the Directorate General of Shipping, Director
General, Indian Coast Guard, administering authority and any other Government
authority, without delay, a report of any accident causing death or serious
bodily injury or serious injury to property or seriously affecting or
endangering life or property which may occur in the course of its production
operations;
(zi)
the lessee shall maintain a copy of the production plan at the vessel or
installation by way of which production operations are being carried out in the
lease area, or at an earmarked site;
(zj)
the lessee shall not employ, in connection with the production operations, any
person who is not an Indian national except with the prior approval of the
administering authority;
(zk)
the lessee shall allow any officer authorised by the Central Government or the
administering authority as the case may be, to enter upon any portion of lease
area to inspect the lease area at all reasonable times and shall also supply,
on demand all applicable plans and sections of the lease area as also the
quantity of reserves grade-wise;
(zl)
the lessee shall, unless specifically exempted by the administering authority,
provide, and at all times keep, within the lease area or at point of discharge
from the lease area and at the port of unloading or discharge in India, at
which the minerals shall be brought, a properly constructed and efficient
weighing or measurement system, which may be specified;
(zm)
the lessee shall weigh or measure, or cause to be weighed or measured, all the
produced and dispatched minerals in accordance with the manner as may be
specified:
Provided that the lessee
shall at the close of each day ensure that the total data on production and
dispatch of minerals, including all weights and measurements be entered in the
books of accounts maintained by the lessee:
Provided further that the
lessee shall at all times during the term of the production lease, permit the
administering authority and the Central Government to employ any person or
persons to be present at the weighing or the measurement of the said minerals
as aforesaid, and to keep accounts thereof, and to check the accounts kept by
the lessee and the lessee shall give seven days prior notice in writing to the
administering authority and authorised officer of the Indian Bureau of Mines
for every such weighing, or measuring, in order that he or some officer on his
behalf may be present thereat;
(zn)
the lessee shall at any time during the term of the production lease, allow any
person or persons appointed in that behalf by the administering authority or
the Central Government to examine and test every weighing machine or
measurement system to be provided and kept as aforesaid and the weights or
systems used therewith in order to ascertain whether the same respectively are
correct and in good repair and order:
Provided that if upon any
such examination or testing, any such weighing machine or weights or
measurement system is found incorrect, or out of order, the administering authority
may require that the same be adjusted and put in order, by and at the expense
of the lessee and if such requisition is not complied with within a period of
fourteen days after the same has been made, the administering authority or any
person authorised by the Central Government in this behalf may not grant
transit permit till such weighing machine or weights or measurement system is
calibrated and put in order;
(zo)
if upon any such examination or testing as aforesaid, any error is discovered
in any weighing machine or weights to the prejudice of the administering
authority or the Central Government, such error shall be regarded as having
existed for a period of three months prior to the discovery thereof or from the
last occasion of examining and testing the same weighing machine, weights and
measurement system, in case such occasion is within the said period of three
months, and the lessee shall, in addition to any other penalty or civil
liability which may be imposed under the Act or rules made thereunder, pay the
rent, royalty, auction premium or any such other payment as applicable,
accounted for accordingly;
(zp)
if the lessee fails to carry out or perform any of its obligations under this
sub-rule or under the production lease deed within the time specified in that
behalf, the administering authority may, at its discretion, cause the same to
be carried out or performed and the lessee shall pay the administering
authority, on demand, all expenses incurred in this regard by the administering
authority and the decision of the administering authority as to such expenses
shall be final;
(zq)
failure on the part of the lessee to fulfil any of the terms and conditions of
the Act and the rules made thereunder or under the production lease shall not
give the Central Government or administering authority any claim against the
lessee or be deemed a breach of the production lease, in so far as such failure
is considered by the Central Government to arise from a force majeure and in
the event of any delay by the lessee to fulfill any of the terms and conditions
of the Act and the rules made thereunder or under the production lease on
account of a force majeure, the period of such delay shall be added to the
period fixed by these rules or the production lease.
Explanation. - For the
purposes of this clause the expression "force majeure" means act of
god, war, insurrection, riot, civil commotion, strike, earthquake, storm, tidal
wave, flood, lightning, explosion, fire, or any other happening which the lessee
could not reasonably prevent or control;
(zr)
the lessee may, after paying the rents, rates and royalties payable under the
Act and the rules made thereunder or under the production lease deed, at the
expiry or termination of the production lease term or within a period of six
months thereafter (unless the production lease is terminated for default of the
lessee, and in that case at any time not less than three months nor more than
six months after such termination) dismantle and remove for its own benefit,
all or any ore mineral excavated during the term of the production lease,
vessels, installations, engines, machineries, pipelines, structures,
equipments, platforms, and infrastructure, erections and conveniences which may
have been erected, set up or placed by the lessee in or upon the lease area and
which the lessee is not bound to deliver to the Central Government or which the
Central Government does not desire to purchase;
(zs)
if at the end of a period of six months after the expiry or termination of the
production lease term there shall remain in or upon the lease area, any ore or
mineral, engine, machinery, pipeline, structure, equipment, platform, and other
work, erections and conveniences or other property which are not required by
the lessee, the same shall, if not removed by the lessee within a period of one
month of being notified to do so by the administering authority, be deemed to
become the property of the Central Government and may be sold or disposed of,
at the cost of the lessee, in such manner as the administering authority or the
Central Government as may deem fit without liability to pay any compensation or
to account to the lessee in respect thereof; and
(zt)
the lessee shall ensure that all personnels, vessels, installations, equipments
and infrastructure deployed for the purposes of production operations in the
lease area shall, at all times during the term of the production lease, be
insured by the lessee in accordance with such regulatory requirements, as
applicable under any law for the time being in force, and such other terms and
conditions as may be specified by the Central Government or the administering
authority.
(3)
The lessee shall report to the administering
authority, the discovery in the lease area of any mineral not specified in the
production lease as soon as reasonably practicable, and in no event later than
a period of sixty days from the date of such discovery, and shall not win and
dispose of such discovered mineral without inclusion of such discovered mineral
in the production lease deed.
(4)
In addition to the conditions specified in
sub-rule (2), a production lease may contain following conditions as the
administering authority or Central Government as may deem fit to impose,
namely:-
(a)
the time-limit, mode and place of payment of rents
and royalties;
(b)
measures, as specified by the Central
Government, pertaining to prevention and control of pollution and conservation
of marine ecosystem in protected areas including, marine national parks, marine
sanctuaries or any other area, as may be notified by the Central Government;
(c)
restrictions on production operations in any
area prohibited by any competent authority;
(d)
the notice by lessee for:-
(i)
entering into the lease area prior to
commencement of production operations; and
(ii)
commencement of production operations;
(e)
the provision of proper weighment of mineral
dispatched;
(f)
the reporting of accidents;
(g)
the indemnity to Central Government and
administering authority against claims of third parties;
(h)
the delivery of possession of lease area on
the surrender, expiration or termination of the production lease;
(i)
the forfeiture of property left after
termination of the production lease;
(j)
the power to take possession of the lease
area, vessels, installations and other infrastructure in the event of war or
emergency; and
(k)
any other conditions specified in the tender
document for auction for grant of production lease.
(5)
The administering authority may, either with
the prior approval of the Central Government or at the instance of the Central
Government, impose such further conditions as may be necessary in the interest
of conservation and development of minerals.
(6)
When a production lease is granted by the
Central Government, arrangements shall be made by the administering authority,
at the expense of the lessee, for the survey and demarcation of the lease area.
(7)
Subject to the conditions specified in this
rule, the lessee for the purposes of production operations on lease area shall
have the right to -
(a)
work the mines, win and carry away the
mineral;
(b)
sink pits;
(c)
erect, install or deploy, as the case may be,
any vessel, platform, equipment, installation and other infrastructure;
(d)
use sea water if required for production
operations or transportation;
(e)
use any part of offshore lease area for
storage purpose; and
(f)
do any other thing specified in the
production lease.
(8)
If the lessee does not allow entry, or
inspection under clauses (e), (f), (i), (r), (t), (zk), (zm) or (zn) of
sub-rule (2), the administering authority shall give notice in writing to the
lessee requiring him to show cause within such time as may be specified in the
notice as to why the production lease should not be terminated and the
performance security submitted by the lessee be forfeited and if the lessee
fails to show cause within the aforesaid time to the satisfaction of the
administering authority, the administering authority may terminate the
production lease and forfeit the whole or part of the performance security
submitted by the lessee, and take such other action in accordance with the Act
and the rules made thereunder.
(9)
If the lessee is convicted of illegal mining
and there are no orders of any court of law suspending the operation of the
order of such conviction, the Central Government may, without prejudice to any
other proceedings that may be initiated under the Act or the rules made
thereunder, terminate such production lease and forfeit the performance
security submitted by the lessee, after giving such lessee an opportunity of
being heard and for reasons to be recorded in writing and shall communicate to
the lessee.
(10)
If the lessee makes any default in the
payment of royalty as required under sub-section (1) of section 16 of the Act
or payment of fixed rent as required under sub-section (1) of section 17 of the
Act or contribution towards the International Seabed Authority as required
under section 18 of the Act or contribution to the Offshore Areas Mineral Trust
as required under sub-section (5) of section 16A of the Act or commits a breach
of any of the conditions specified in sub-rules (2), (3) and (6), the
administering authority shall give notice to the lessee requiring him to pay
the royalty or fixed rent or contribution to the International Seabed Authority
or to the Offshore Areas Mineral Trust to remedy the breach, as the case may
be, within a period of sixty days from the date of the receipt of the notice
and if the royalty or fixed rent or contribution to the International Seabed
Authority or to the Offshore Areas Mineral Trust is not paid or the breach is
not remedied within the said period, the Central Government may, without
prejudice to any other proceedings that may be initiated against him, terminate
the production lease and forfeit the whole or part of the performance security
submitted by the lessee.
CHAPTER 5 EXPIRY, LAPSE, SURRENDER OR
TERMINATION
Rule 9. Auction.
On the expiry of the
production lease period, the lease area may be put up for auction as per the
procedure specified in section 13 of the Act and the Chapter II of the Offshore
Areas Mineral (Auction) Rules, 2024, and the process of such auction may be
commenced one year in advance of such expiry.
Rule 10. Lapsing of composite licence.
(1)
Where the licensee fails to commence
exploration operation within a period of one year after the grant of composite
licence, or upon commencement, discontinues the operation for a period of two
years, the administering authority shall, subject to the provisions of subrule
(1) of rule 12, by an order, declare the composite licence, as lapsed from the
date of execution of the composite licence or, as the case may be,
discontinuance of the operation, and communicate the declaration to the
licensee.
(2)
The administering authority may forfeit the
performance security submitted by the licensee, in full or in part, upon the
lapse of a composite licence.
(3)
The licensee shall pay for any expenditure
incurred by the administering authority, over and above the performance
security, towards carrying out any protective measures or taking any necessary
steps, or measures, as may be specified by the Central Government, to enable
the natural rehabilitation of the seabed affected by the exploration
operations.
(4)
The administering authority shall intimate
the Indian Bureau of Mines in writing about such lapse of a composite licence.
Rule 11. Lapsing of production lease.
(1)
Where the lessee fails to commence production
operations within a period of two years after the grant of production lease, or
upon commencement, discontinues the production operations for a period of two
years, the administering authority shall, subject to sub-rule (1) of rule 12,
by an order, declare the production lease as lapsed from the date of execution
of the production lease or, as the case may be, discontinuance of the
operation, and communicate the declaration to the lessee.
(2)
Where production and dispatch has not
commenced within a period of four years after the execution of the production
lease, or is discontinued for a period of two years after commencement of
production and dispatch, the administering authority shall, subject to sub-rule
(1) of rule 12, by an order, declare the production lease as lapsed on the
expiry of the period of four years from the date of its execution or, as the
case may be, two years from the date of discontinuance of the production and
dispatch, and communicate the declaration to the lessee.
(3)
The administering authority may forfeit the
performance security submitted by the lessee, in full or in part, upon the
lapse of a production lease.
(4)
The lessee shall pay any expenditure incurred
by the administering authority, over and above the performance security,
towards carrying out any protective measures or taking any necessary steps, or
such other measures, as may be specified by the Central Government, to enable
the natural rehabilitation of the seabed affected by the production operations.
(5)
The administering authority shall intimate
the Indian Bureau of Mines in writing about such lapse of a production lease.
Rule 12. Application for extension of periods.
(1)
Where -
(a)
a licensee is unable to commence exploration
operation or upon commencement, discontinues the operation within the period
specified under sub-rule (1) of rule 10;
(b)
a lessee is -
(i)
unable to commence production operations or
upon commencement, discontinues the operation within the period specified under
sub-rule (1) of rule 11; or
(ii)
unable to commence the production and
dispatch, or upon commencement, such production and dispatch is discontinued
for the period specified under sub-rule (2) of rule 11, in each case, for
reasons beyond its control, it may submit an application to the administering
authority at least three months before the expiry of such period, seeking an
extension of such period duly explaining the reasons for the same:
Provided that where the
licensee or the lessee has failed to make the application within such time due
to the reasons beyond its control but has made application before the lapse of
the composite licence, or the production lease, as the case may be, the
administering authority may condone the delay in making such application.
(2)
Every application made under sub-rule (1)
shall specify -
(a)
the reasons on account of which it was not
possible for the licensee or lessee, as the case may be, to undertake
exploration operations or production operations or production and dispatch, as
the case may be, or continue exploration operations or production operations or
production and dispatch, as the case may be;
(b)
the manner in which such reasons were beyond
the control of the licensee or lessee; and
(c)
the steps that have been taken by the
licensee or lessee to mitigate the impact of such reasons.
(3)
Every application under sub-rule (1) shall be
accompanied by a fee of rupees one lakh.
(4)
The administering authority shall after
examining the adequacy and genuineness of the reasons for the non-commencement
of exploration operations or production operations, or production and dispatch,
or discontinuance thereof, as the case may be, pass an order, within a period
of three months from the date of receipt of the application made under sub-rule
(1) or before the date on which the composite licence or production lease, as
the case may be, would have otherwise lapsed, whichever is earlier, either
granting or rejecting such application:
Provided that any such
extension shall not be granted for a period exceeding one year and such
extension shall not be granted for more than once during the entire period of
the composite licence or the production lease, as the case may be.
Rule 13. Surrender of production lease.
(1)
The lessee may make an application to the
administering authority for surrendering of the entire or a part of the lease
area after giving a notice in writing of not less than a period of six months
from the intended date of surrender.
(2)
The administering authority may allow
surrender of a production lease under sub-rule (1) subject to the following
conditions, namely:-
(a)
every application for surrender of lease
area, or part thereof, shall be accompanied by an approved final mine closure
plan;
(b)
the lessee has submitted documents to
evidence implementation of the approved final mine closure plan;
(c)
surrender of a part of the lease area shall
comprise only contiguous standard blocks along the boundaries of the existing
lease area and such area shall have been properly surveyed;
(d)
all dues with respect to the production lease
have been settled;
(e)
the lessee shall deposit an amount equal to
the estimated expenditure (in excess of the existing performance security), if
any, to be incurred by the Central Government or the administering authority,
as determined by the administering authority, towards protective measures or
take any necessary steps or such other measures, as may be specified by the
Central Government, to enable the natural rehabilitation of the seabed affected
by production operations in the lease area;
(f)
the provisions regarding systematic
development of mineral deposit provided in the production plan including the
measures for protection of environment have been complied with.
(3)
In case of surrender of the entire lease area
before the exhaustion of the mineral resources, the performance security
submitted by the lessee shall stand forfeited:
Provided that the
performance security submitted by the lessee shall not be forfeited in case -
(i)
the lessee faces hindrances in production
operations due to operations of other lessees of petroleum or offshore wind
power projects or operations of Government security agencies or other
government agencies; or
(ii)
ten years have elapsed after execution of
production lease and the lessee finds the production operations are uneconomic.
(4)
The administering authority may refuse to
accept such surrender of the entire or a part lease area for the reasons to be
communicated in writing to the lessee.
(5)
The lessee shall pay any expenditure over and
above the performance security to be incurred by the administering authority as
determined by the administering authority, towards carrying out any protective
measures or taking any necessary steps, or measures, including as specified by
the Central Government, to enable the natural rehabilitation of the seabed
affected by the production operations in the lease area which has been
surrendered.
Rule 14. Termination.
(1)
The Central Government, after consulting with
the administering authority, may terminate a production lease or composite
licence under the provisions of sub-section (1) of section 7 of the Act, if it
is of the opinion that such termination is expedient in public interest,
strategic interest of the country, in the interest of development and
regulation of offshore mineral resources, preservation of natural environment
and prevention of pollution, avoidance of danger to public health or
communication, ensuring safety of any offshore structure or conservation of
mineral resources or for any other reason.
(2)
Without prejudice to sub-rule (1) and subject
to clause (za) of sub-rule (2) of rule 7 or clause (zq) of sub-rule (2) of rule
8, as the case may be, the Central Government may terminate a composite licence
or production lease, if such licensee or lessee, as the case may be, at any
time during the term of the composite licence or production lease-
(a)
fails to fulfil, or contravenes, any of the
terms, covenants and conditions contained therein or in the Act or the rules
made thereunder; or
(b)
fails to use the offshore area covered by it
for bonafide purpose for which it has been granted; or
(c)
uses such offshore area for a purpose other
than for which it has been granted; or
(d)
fails to comply with Indian laws and
regulations, international conventions or treaties to which India is a party
including those applicable for environmental protection, pollution control,
hazardous wastes; or
(e)
fails to abide by the directives of the
administering authority, the Central Government or Government security
agencies.
(3)
No order for premature termination of
operating right under this rule shall be made except after giving the lessee or
the licensee, as the case may be, a reasonable opportunity of being heard,
except in cases where premature termination is being done on the grounds of
strategic interest of the country.
(4)
Notwithstanding anything contained in this
rule, if any failure, contravention or use referred to in sub-rule (2), is of a
remediable nature, the Central Government may give notice to such person
requiring him to remedy the same within a period of sixty days from the date of
receipt of the notice and informing him that his composite licence or
production lease, may be terminated without any further notice, in case such
failure, contravention or use is not remedied within such period specified
above.
(5)
In the event of termination of a production
lease or composite licence, the administering authority may forfeit the
performance security submitted by the lessee or the licensee.
(6)
The lessee or the licensee shall deposit an
amount equal to the estimated expenditure (in excess of the forfeited
performance security), if any, to be incurred by the Central Government or the
administering authority, as determined by the administering authority, towards
carrying out any protective measures or taking any necessary steps, or such
other measures, as may be specified by the Central Government, to enable the
natural rehabilitation of the seabed affected by the exploration operations or
production operations, as the case may be.
CHAPTER 6 TRANSFERS
Rule 15. Transfer of production lease or composite licence.
(1)
The holder of a production lease or composite
licence (hereinafter referred to as the transferor) may transfer his production
lease or composite licence, as the case may be, to any person eligible to hold
a production lease or composite licence in accordance with the provisions of
section 13B of the Act and the rules made thereunder (hereinafter referred to
as the transferee) with the prior approval of the administering authority.
(2)
The transferor and the transferee shall,
prior to the transfer, jointly submit an application to the administering
authority in Form IV which shall contain details of the consideration payable
by the transferee for the transfer, including the consideration in respect of
the exploration operations or production operations or both, as the case may
be, already undertaken and the reports and data generated during the
operations.
(3)
The administering authority shall, subject to
approval of the Central Government, convey its decision to approve or reject
such transfer for the reasons to be recorded in writing:
Provided that no such
transfer of a production lease or of a composite licence shall be made in
contravention of any condition subject to which the production lease or the
composite licence was granted.
(4)
All transfers effected under this rule shall
be subject to the condition that all dues with respect to the composite licence
or the production lease, as the case may be, shall be settled prior to such
transfer, and that the transferee has accepted all the conditions and
liabilities under any law for the time being in force which the transferor was
subject to in respect of such a production lease or composite licence, as the
case may be.
(5)
On and from the date of transfer, the transferee
shall be liable towards the administering authority and the Central Government
with respect to any and all liabilities with respect to the composite licence
or the production lease, as the case may be.
(6)
The transferor and the transferee shall
jointly submit a registered deed, in Form V within a period of thirty days from
the date of receipt of a letter of approval from the administering authority as
specified in sub-rule (3).
(7)
If a registered transfer deed is not
submitted to the administering authority in accordance with subrule (6), then
the transfer application made under sub-rule (2) shall become ineligible.
(8)
The date of commencement of the transfer deed
shall be the date on which an executed transfer deed is registered.
(9)
Every holder of a composite licence or a
production lease who transfers such composite licence or production lease, in
accordance with the provisions of the Act or the rules made thereunder, to any
other person, shall, within a period of thirty days of the date of such
transfer, send an intimation thereof in Form VI to the Controller General,
Indian Bureau of Mines and the administering authority.
(10)
The administering authority shall intimate
the Indian Bureau of Mines, Naval Headquarters (Directorate of Naval
Intelligence), Ministry of Defence and such other authority or department as
specified by the Central Government, in writing about any transfer of a
composite licence or a production lease, as the case may be.
(11)
The Central Government on the recommendation
of the administering authority may, by an order in writing terminate any
production lease or composite licence, as the case may be, and forfeit the
performance security, at any time if the lessee or licensee has, in the opinion
of the Central Government, committed a breach of any of the provisions of this
rule or has transferred such production lease or composite licence or any
right, title, or interest therein otherwise than in accordance with this rule:
Provided that no such order
shall be made without giving the lessee or licensee a reasonable opportunity of
being heard.
Rule 16. Mutation of production lease or composite licence.
(1)
In case of death of a lessee or licensee
during the term of the production lease or composite licence, the legal heirs
may apply to the administering authority for mutation of their name in the
production lease or composite licence in place of the deceased lessee or
licensee, as the case may be.
(2)
The administering authority within a period
of ninety days from the date of receiving such application for mutation shall
enter the names of such legal heirs in the records in place of the deceased
lessee or licensee or reject such mutations for the reasons to be recorded in
writing:
Provided that no such
mutation of name in a production lease or a composite licence shall be made in
contravention of any condition subject to which such production lease or
composite licence was granted.
(3)
The administering authority shall intimate
the Indian Bureau of Mines, Naval Headquarters (Directorate of Naval
Intelligence), Ministry of Defence and such other authority or department as
specified by the Central Government, in writing about any mutation under this
rule.
Rule 17. Encumbrance and enforcement of security interest.
(1)
A person holding a composite licence or a
production lease may create any encumbrance over such composite licence or
production lease.
(2)
In the event of enforcement of security interest
with respect to such encumbrance, the operating right shall be assigned only to
such transferee who meets all the eligibility conditions which were required to
be met by the transferor for grant of such composite licence or production
lease and in the manner as specified in rule 15:
Provided that in such cases
the creditors enforcing the security interest may submit the transfer
application on behalf of the transferee.
CHAPTER 7 MINERALS VALUATION
Rule 18. Sale value.
Sale value is the gross
amount payable by the purchaser as indicated in the sale invoice where the sale
transaction is on an arms length basis and the price is the sole consideration
for the sale, excluding taxes and contribution to International Seabed
Authority, if any.
Explanation. - For the
purposes of computing sale value, no deduction from the gross amount shall be
made in respect of fixed rent, royalty, payments to the Offshore Areas Mineral
Trust.
Rule 19. Payment of royalty.
(1)
Royalty shall be charged on the run-of-mine
irrespective of its processing within or outside the lease area:
Provided that the royalty
shall be payable at the time of dispatch from the lease area.
(2)
Where the First Schedule to the Act specifies
that the royalty in respect of any mineral is to be paid on an ad valorem
basis, the royalty shall be calculated at the specified percentage of the
average sale price of such mineral grade or concentrate, for the month of
removal or consumption, as published by the Indian Bureau of Mines minus the
amount payable towards royalty and the Offshore Areas Mineral Trust, as
calculated on the average sale price published by the Indian Bureau of Mines.
(3)
Where the First Schedule to the Act specifies
that the royalty in respect of any mineral, including polymetallic nodules and
crusts, is to be paid based on the London Metal Exchange or the London Bullion
Market Association price or any other index, publication or exchange, the
royalty shall be calculated at the specified percentage of the average sale
price of the metal for the month as published by the Indian Bureau of Mines,
for the metal contained in the ore removed or the total by-product metal
actually produced, as the case may be, of such mineral for the month:
Provided that deduction of
amount payable towards royalty and Offshore Areas Mineral Trust as stipulated
under sub-rule (2) shall not be applicable for minerals covered under this
sub-rule.
(4)
Where the First Schedule to the Act specifies
that the royalty of any mineral is to be paid on tonnage basis, the royalty
shall be calculated as product of mineral removed or consumed from the lease
area and the specified rate of royalty.
Rule 20. Provisional assessment and adjustment.
(1)
At the time of removal or consumption of
mineral from the lease area, the lessee shall calculate the amount of royalty
and payments to the Offshore Areas Mineral Trust based on the latest available
average sale price of the said mineral grade and pay the same to the Central
Government as provisional payment for the same.
(2)
After the publication of the average sale
price of the minerals for the month by the Indian Bureau of Mines, due
adjustment of the actual amounts payable against the provisional payment may be
made.
Rule 21. Royalty chargeable on dry basis.
The royalty shall be
chargeable on the weight of the mineral removed, measured on dry basis.
Rule 22. Computation of average sale price.
(1)
The ex-mine price shall be used to compute
average sale price of mineral grade or concentrate.
(2)
The ex-mine price of mineral grade or
concentrate shall be -
(a)
where export has occurred, the free-on-board
price of the mineral less the actual expenditure incurred beyond the lease area
towards transportation charges by sea, road, loading and unloading charges,
railway freight (if applicable), port handling charges, export duty, charges
for sampling and analysis, rent for the plot at the stocking yard, handling
charges in port, charges for stevedoring and trimming, any other incidental
charges incurred outside the lease area as notified by the Indian Bureau of
Mines, divided by the total quantity exported;
(b)
where domestic sale has occurred, sale value
of the mineral less the actual expenditure incurred towards transportation,
loading, unloading, rent for the plot at the stocking yard, charges for
sampling and analysis and any other charges beyond the lease area as notified
by the Indian Bureau of Mines, divided by the total quantity sold;
(c)
where sale has occurred, between related
parties or where the sale is not on arms length basis, or where the mineral has
been used for its own consumption by the lessee, then such sale shall not be
recognised as a sale for the purpose of this rule:
Provided that where no
declaration for sale between related parties or for sale not on arms length
basis or for own consumption has been made by the lessee or subsequently and
before publication of average sale price for that month, such declaration is
discovered to be factually incorrect or misrepresented, such quantity of
mineral shall be considered as sold and the latest available average sale price
published monthly by the Indian Bureau of Mines for that mineral grade or
concentrate shall be considered as the ex-mine price for this quantity;
(d)
where sale has not occurred, the latest
available average sale price published monthly by the Indian Bureau of Mines
for that mineral grade or concentrate.
(3)
The average sale price of any mineral grade
or concentrate in respect of a month shall be the weighted average of the
ex-mine prices computed in accordance with sub-rules (1) and (2), the weight
being the quantity dispatched from the lease area of mineral grade or
concentrate relevant to each ex-mine price.
Rule 23. Publication of average sale price.
The Indian Bureau of Mines
shall publish the average sale price of each mineral grade or concentrate removed
from the lease area in a month within a period of thirty days from the due date
for filing the monthly returns.
Rule 24. Average sale price of metal.
The Indian Bureau of Mines
shall publish every month, the average sale price of the metals, elements or
their compounds in Indian Rupees, whose prices are available in the London
Metal Exchange or the London Bullion Market Association or any other
publication, exchange or index, as may be specified by the Central Government,
in the following manner, namely:-
(a)
in case daily price is available, such price
available during all the days of the month shall be multiplied by the reference
rate, for the day, of the Reserve Bank of India or any other agency authorised
by such bank, for the currency in which the price is obtained;
(b)
in case price is not available on daily
basis, but available on weekly basis, such weekly prices published in a month
shall be multiplied by, the reference rate of the Reserve Bank of India or any
agency authorised by such bank, for the currency in which the price is
obtained, for the day of publication of such weekly price;
(c)
in case price is not available on daily or
weekly basis, but available on monthly basis, such monthly price shall be
multiplied by the monthly average of the reference rate of the Reserve Bank of
India or any agency authorised by such bank, for the currency in which the
price is obtained;
(d)
where the Reserve Bank of India reference
rate is not available for any day on which the price of publication, exchange
or index is available, the Reserve Bank of India reference rate for the
immediately preceding day shall be used;
(e)
the Central Government may specify any
conversion factor to be applied for certain ore or compound of a metal or
element for arriving at monthly average sale price of a metal or element on
case to case basis, which shall be used by the Indian Bureau of Mines to
publish the average sale price.
Rule 25. Average sale price of polymetallic nodules and crusts.
The average sale price of
polymetallic nodules and crusts shall be the sum of percentage of individual
element contained in the polymetallic nodules and crusts multiplied by average
sale price of that element or metal as published by the Indian Bureau of Mines
based on the London Metal Exchange or the London Bullion Market Association
price or any other index, publication or exchange as per the following formula:
-
Average sale price = ? (Qi X
Pi)
Where:
Qi = Percentage of ith
element or metal in the polymetallic nodules and crusts;
Pi = Average sale price of
ith element or metal in the polymetallic nodules and crusts:
Provided that, where average
sale price of relevant element or metal is not published by the Indian Bureau
of Mines under these rules, the average sale price of the highest grade of ore
of such element or metal published under the Minerals (Other than Atomic and
Hydro Carbons Energy Minerals) Concession Rules, 2016 shall be considered:
Provided further that, for a
mine or a group of mines, the Indian Bureau of Mines shall specify the elements
which contribute five per cent. or more weightage by value to the calculation
of average sale price which shall be included for calculation of average sale
price.
Rule 26. Power to issue directions by Controller General.
The Controller General,
Indian Bureau of Mines may issue directions, as and when necessary, to give
effect to the provisions of this Chapter.
CHAPTER 8 PAYMENTS
Rule 27. Fees and deposit to be made.
Any amount payable under the
Act or the rules made thereunder, shall be paid in such manner as the Central
Government may specify in this behalf.
Rule 28. Payment of interest.
The Controller General,
Indian Bureau of Mines may, without prejudice to the provisions contained in
the Act or the rules made thereunder, charge simple interest at the rate of
twelve per cent. per annum on any rent, royalty or fee or other sum due to the Central
Government under the Act or rules made thereunder or terms and conditions of
composite licence or production lease from the expiry of the date fixed by the
administering authority or the Central Government, as the case may be, for
payment of such royalty, rent, fee or other sum and until payment of such
royalty, rent, fee or other sum is made.
Rule 29. Payments under section 16A and section 18 of the Act.
In addition to the payments
specified herein, the holder of a production lease shall be required to pay to
the Offshore Areas Mineral Trust and International Seabed Authority in
accordance with the provisions of section 16A and section 18 of the Act, and
the rules made thereunder.
Rule 30. Payments under rule 13 of the Offshore Areas Mineral (Auction) Rules, 2024.
In addition to the payments
specified in this Chapter, the holder of a production lease shall pay the
auction premium to the Central Government, on a monthly basis, on the average
sale price of the mineral grade or concentrate published by the Indian Bureau
of Mines for the relevant month minus the amount payable towards royalty and
Offshore Areas Mineral Trust, as calculated on the average sale price published
by the Indian Bureau of Mines:
Provided that deduction of
amount payable towards royalty and the Offshore Areas Mineral Trust shall not
be applicable for minerals, including polymetallic nodules and crusts, for
which average sale price is published on the basis of the London Metal Exchange
or the London Bullion Market Association price or any other index, publication
or exchange.
Rule 31. Payment for overburden or waste not sold or consumed economically.
Notwithstanding anything
contained in rules 19, 29 and 30, no payment towards royalty, the Offshore
Areas Mineral Trust or auction premium shall be payable in case of removal of
overburden or waste from a mine if such overburden or waste is not sold or
consumed economically.
CHAPTER 9 PENALTY
Rule 32. Penalty.
Whoever contravenes the
provisions of rules 7 and 8, sub-rule (5) of rule 13, sub-rule (6) of rule 14,
rules 15, 17, 20, 29, 30, 39, 40, 41, 42 and 44 shall be punishable with
imprisonment for a term which may extend to five years or with fine of fifty
lakh rupees, which may extend to one crore rupees, or with both, and in the case
of a continuing contravention, with additional fine which may extend to five
lakh rupees for every day during which such contravention continues after
conviction for the first such contravention.
CHAPTER 10 APPEAL
Rule 33. Application for appeal.
(1)
Any person aggrieved by any order passed by
the administering authority or any officer in exercise of the powers conferred
on it by the Act or any rules made thereunder may prefer an appeal to the
Central Government in triplicate in Form VII, within a period of three months
from the date of receipt of the order:
Provided that any such
appeal may be entertained after the period of three months if the appellant
satisfies the Central Government that he had sufficient cause for not
preferring the appeal within the stipulated time.
(2)
The appeal shall be accompanied by a fee of
ten thousand rupees payable either by way of a bank draft drawn on a Scheduled
Bank in the name of "Pay and Accounts Officer, Ministry of Mines"
payable at New Delhi or by any other mode of payment specified by the Central
Government.
(3)
Every appeal made under sub-rule (1) shall be
made only after impleading all the necessary parties and serving a copy of the
memorandum of appeal on such parties by way of advance service and furnish
proof thereof.
(4)
The appellant shall, along with the
memorandum of appeal under sub-rule (1), submit as many copies thereof as may
be specified by the Central Government.
(5)
On receipt of the memorandum of appeal, the
Central Government shall send a notice to each of the parties impleaded under
sub-rule (3) specifying a date on or before which he may make his
representations, if any, against the appeal.
(6)
The Central Government shall be empowered to
specify any applicable procedures or requirements for deciding appeals under
this rule.
Rule 34. Orders on appeal.
(1)
On receipt of a memorandum of appeal under
rule 33, the Central Government shall forward the copies of such memorandum of
appeal to the administering authority or other authority calling upon them to
make such comments as they may like to make within a period of three months
from the date of issue of the communication, and the administering authority or
other authority, while furnishing comments to the Central Government shall
simultaneously endorse a copy of the comments to the other parties.
(2)
The comments received from any party under
sub-rule (1) shall be forwarded to the other parties for making such further
comments as they may like to make within a period of one month from the date of
issue of the communication and the parties making further comments shall send
them to all the other parties.
(3)
The application for appeal, the
communications containing comments and counter comments referred to in
sub-rules (1) and (2) shall constitute the records of the case.
(4)
After considering the records referred to in
sub-rule (3), and after giving the parties to the appeal a reasonable
opportunity of being heard and after making such inquiry as it deems proper,
the Central Government may confirm, modify or reverse the order appealed
against or send back the case with such directions as it may deem fit for a
fresh order after taking additional evidence, if necessary.
(5)
During the pendency of appeal, the Central
Government may, for sufficient cause, stay the execution of the order against
which an appeal has been preferred.
CHAPTER 11 MISCELLANEOUS
Rule 35. Amalgamation of production leases.
(1)
The Central Government may, in the interest
of mineral development and with reasons to be recorded in writing, permit
amalgamation of two or more adjoining production leases held by a lessee:
Provided that the period of
amalgamated production leases shall be co-terminus with the production lease
whose period shall expire first.
(2)
Without prejudice to the provisions of the
Act or any rules made thereunder or the terms and conditions of a production
lease, every holder of a production lease shall, within a period of thirty days
of the date of amalgamation of production leases carried out under sub-rule
(1), send an intimation thereof to the Indian Bureau of Mines and the
administering authority.
Rule 36. Power to rectify apparent mistakes.
Any clerical or arithmetical
mistake in any order passed by the Central Government or the administering
authority or any other authority or officer under these rules and any error
arising therein due to accidental slip or omission, may, within a period of two
years from the date of the order, be corrected by such Government, authority or
officer, as the case may be:
Provided that no
rectification order prejudicial to any person shall be passed unless such
person has been given a reasonable opportunity of being heard.
Rule 37. List of operating rights, copies of composite licences and production leases, annual returns and reports to be supplied to other authorities.
(1)
Upon grant of any operating right, a list
containing the details of the offshore areas for which such operating right has
been granted by the Central Government shall be furnished by the administering
authority to the Ministries and Departments as specified under sub-rule (2) of
rule 5.
(2)
A copy of every production lease or composite
licence granted under the Act and the rules made thereunder shall be furnished
by the administering authority within a period of two months of such grant to
the Controller General, Indian Bureau of Mines and the Director General,
Directorate General of Mines Safety.
(3)
A consolidated annual return of all
production leases and licences granted under the Act and the rules made
thereunder shall be furnished by the administering authority to the Controller
General, Indian Bureau of Mines in such form as may be specified by him, not
later than the 30th day of June following the year to which the return relates,
a copy of which shall also be furnished by the administering authority to the Director
General, Directorate General of Mines Safety at the same time.
(4)
All relevant data, reports, samples and other
relevant information pertaining to exploration operations and production
operations as submitted by the licensee under clause (f) of sub-rule (2) of
rule 7 and by the lessee under clause (u) of sub-rule (2) of rule 8, shall be
submitted by the administering authority to the Chief Hydrographer to the
Government of India within one month from the date of receipt.
Rule 38. Registers relating to operating rights.
A register of operating
rights granted by the Central Government shall be maintained by the
administering authority in the format specified in Form VIII.
Rule 39. Supply of certain information to new operating right holder.
Where any area has
previously been held under an operating right, the person who was granted such
operating right shall make available to the new operating right holder the
original or certified copies of all plans, including abandoned workings, in
that area.
Rule 40. Change of name, nationality, etc. to be intimated.
(1)
The licensee or lessee shall intimate to the
administering authority within a period of sixty days any change that may take
place in its name, nationality, registered office and details of majority owners
or other particulars furnished to the administering authority.
(2)
If licensee or lessee fails without
sufficient cause to furnish the information referred to in sub-rule (1), the
Central Government may impose a fine of five lakhs rupees which may extend to
ten lakh rupees and in the case of continued contravention of the provisions of
sub-rule (1) the Central Government may terminate the operating right and
forfeit the performance security:
Provided that no such order
shall be made without giving the licensee or the lessee, as the case may be, a
reasonable opportunity of stating his case.
Rule 41. Change in majority ownership or control.
(1)
Any change in majority ownership or change in
control of the lessee or the licensee may only be effected with the prior
approval of the administering authority.
(2)
The lessee or the licensee shall submit an
application to the administering authority containing the existing shareholding
pattern, the shareholding pattern that would result following a change in
majority ownership or control and the following details of the incoming owner,
namely:-
(a)
Permanent Account Number or Tax Deduction and
Collection Account Number;
(b)
registered office or office address; and
(c)
copy of certificate of incorporation and
constitutional documents, in case of body corporates.
(3)
The lessee or the licensee shall provide such
additional information as may be sought by the administering authority.
(4)
The administering authority shall, subject to
the approval of the Central Government, convey its decision on the application
made under sub-rule (2) within a period of ninety days.
Explanation.- For the
purposes of this rule, the expression "control" shall have the
meaning assigned to it in clause (27) of section 2 of the Companies Act, 2013
(18 of 2013).
Rule 42. Furnishing of geophysical data, etc.
(1)
An operating right holder shall furnish-
(a)
all geophysical data relating to exploration
or production or engineering surveys such as anomaly maps, sections, plans,
structures, contour maps, logging collected by him during the course of
exploration operations or production operations, to the Director General,
Geological Survey of India and any other authority as may be specified by the
Central Government;
(b)
all information pertaining to incidental
investigations of atomic minerals discovered and stored by him during the
course of exploration operations or production operations to the Director,
Atomic Minerals Directorate for Exploration and Research, and as may be
specified by the Central Government.
(2)
Data or information referred to in sub-rule
(1) shall be furnished every year reckoned from the date of commencement of the
period of the operating right.
Rule 43. Ownership and confidentiality of exploration data.
(1)
All data obtained as a result of exploration
operations or production operations including, but not limited to, all
geophysical data relating to exploration or production or engineering surveys
such as anomaly maps, sections, plans, structures, contour maps, logging,
reports, samples, including the data pertaining to quantum of such samples won
and extracted, shall be the sole property of the Central Government:
Provided that such licensee
or lessee or agency specified or notified under the proviso to sub-section (1)
of section 5 of the Act may make use of such data, free of cost, for the
purpose of such exploration operations or production operations, as the case
may be.
(2)
While submitting reports under clause (f) of
sub-rule (2) of rule 7, the licensee may specify that the whole or any part of
the reports and data submitted by him shall be kept confidential, and the
concerned authorities shall thereupon, keep such portions of the submitted
reports and data as confidential as may be deemed fit:
Provided that the Central
Government may use such confidential reports and data for its own purposes:
Provided further that if the
licensee fails to apply for a production lease within the time period
stipulated in sub-section (6) of section 12 of the Act, or if an application
for production lease is submitted by the licensee is rejected by the Central
Government or the administering authority, or upon termination or expiration of
the composite licence, or abandonment of operations or surrender of excess area
in accordance with the first proviso to sub-rule (7) of rule 18 of the Offshore
Areas Mineral (Auction) Rules, 2024, all reports and data submitted by the said
licensee shall become the sole property of the Central Government.
(3)
While submitting reports under clause (u) of
sub-rule (2) of rule 8, the lessee may specify that the whole or any part of
the reports and data submitted by him shall be kept confidential, and the
concerned authorities shall thereupon, keep such portions of the submitted
reports and data as confidential as it may deem fit:
Provided that the Central Government
may use such confidential reports and data for its own purposes:
Provided further that upon
termination or expiration or surrender or abandonment of the production lease,
all reports and data submitted by the said lessee shall become the sole property
of the Central Government.
Rule 44. Discovery of new minerals.
(1)
Notwithstanding anything contained in these
rules, the exploration operations or production operations shall be subject to
the following conditions, namely:-
(a)
if a lessee or licensee discovers any mineral
(including any atomic mineral) in the lease area or licence area which is not
specified in the production lease or composite licence, the discovery of such
mineral shall be reported to the administering authority or, in the case of any
atomic mineral to the Director, Atomic Minerals Directorate for Exploration and
Research and Department of Atomic Energy, as soon as practically possible, but
in no case later than a period of sixty days from the date of discovery of such
mineral:
Provided that consequent
upon such reporting, the lessee or licensee may subject to clause (b), apply
for inclusion of such newly discovered mineral in the production lease or
composite licence to the concerned authority specified at clause (a), and
subject to the receipt of approval of the concerned authority, such mineral
shall be included in the production lease or composite licence, as the case may
be, except for the minerals to which these rules do not apply:
Provided further that the
administering authority shall obtain prior approval of the Central Government
before approving inclusion of such newly discovered mineral in the composite
licence or production lease;
(b)
the lessee or licensee shall not win and
dispose of any atomic mineral having grade equal to, or greater than the
threshold value in respect of atomic minerals, so discovered, and the same
shall be dealt in accordance with the first proviso to section 6 of the Act:
Provided, that in case the
lessee or licensee is the Government, or a Government company or a corporation,
the said lessee or licensee shall, upon discovery of an atomic mineral having
grade equal to or greater than the threshold value in respect of atomic
minerals, apply to the Department of Atomic Energy through the administering
authority, for grant of a lease or licence to handle such minerals under the
provisions of the Atomic Energy Act, 1962 (33 of 1962) and the Act, including
the rules made thereunder and the Department of Atomic Energy shall intimate
the administering authority regarding any issue of a production lease or
composite licence, as the case may be;
(c)
the quantities of atomic minerals recovered
incidental to such exploration operations or production operations shall be
collected and stored separately and a report to that effect shall be sent to
the Department of Atomic Energy and the Director, Atomic Minerals Directorate
for Exploration and Research every three months for such further action by the
lessee or licensee as may be directed by the Atomic Minerals Directorate for
Exploration and Research or the Department of Atomic Energy.
(d)
the licensee or lessee shall, if encountered
during exploration operations or productions operations, as the case may be, in
the licence area or the lease area, report indications of any form of mineral
oil, namely, oil, gas, gas hydrate, oil sands or any other hydrocarbon
compound, to the administering authority within a period of sixty days from the
date of such encounter, who in turn shall pass on the information to the
Ministry of Petroleum and Natural Gas.
Rule 45. Incidental mineral extraction.
(1)
Notwithstanding anything contained in these
rules or any other rules made under the Act, any person whose operations or
activities may result in incidental mineral extraction shall-
(a)
give an intimation to the administering
authority thirty days prior to commencement of any such operations or
activities;
(b)
obtain approval of the administering
authority prior to the removal or consumption of any mineral from its
authorised area:
Provided that no approval
shall be required in case, removal of any mineral is done for the purpose of
maintenance of ports or installation of any infrastructure or any such activity
and the mineral thus removed is not being sold or consumed.
(2)
The intimation under clause (a) of sub-rule
(1) shall include the following, namely:-
(a)
name of the infrastructure project or other
works to be undertaken and the date of commencement of such projects or works
and duration thereof; and
(b)
copy of work order or concession agreement
issued by the appropriate authority.
(3)
The application for approval under clause (b)
of sub-rule (1) shall include the following, namely:-
(a)
details pertaining to the nature of
infrastructure project or other works to be undertaken and the date of commencement
of such projects or works and duration thereof;
(b)
copy of work order or concession agreement
issued by the appropriate authority;
(c)
proposed quantity and minerals for which such
application is being made;
(d)
proposed plan for removal or consumption of
any mineral from its authorised area; and
(e)
report of a National Accreditation Board for
Testing and Calibration Laboratories accredited laboratory on the composition
of such mineral.
(4)
On receipt of application, the administering
authority may grant its approval for removal or consumption of such mineral
subject to such terms and conditions as it may specify:
Provided that the
administering authority may seek such additional information or data as it may
require including a no-objection from Department of Atomic Energy.
(5)
In case, it is found that the mineral
extracted pursuant to incidental mineral extraction contains any atomic
mineral, such person shall not be permitted to remove or consume such minerals,
and the same shall be dealt with in the manner as directed by the Department of
Atomic Energy.
(6)
Any mineral removed or consumed by such
person pursuant to incidental mineral extraction shall be subject to payment of
applicable royalty in the manner as specified by the administering authority or
the Central Government:
Provided that no royalty
shall be payable in case, removal of any mineral is done for the purpose of
maintenance of ports or installation of any infrastructure or any such activity
and the mineral thus removed is not being sold or consumed.
(7)
The Central Government shall at all times
have the right of pre-emption of the minerals extracted pursuant to incidental
mineral extraction.
Rule 46. Lease period for more than one mineral in an area.
Where more than one mineral
is found in an area granted through auction, the period of production lease for
all minerals shall be co-terminus with that for which the production lease was
originally granted.
Rule 47. Completion of any requirement on a public holiday.
When the day of completion
of any requirement under these rules is falling due on a public holiday, the
day of completion shall be deemed to be due on the next working day.
Explanation.-For the
purposes of this rule, the expression public holiday includes Saturday, Sunday
and any other day declared to be a public holiday by the Central Government.
Rule 48. Boundaries below sea level.
The boundaries of a
composite licence or a production lease shall be indicated by the longitudes
and latitudes and shall run vertically downwards below the sea surface towards
the centre of the earth.
Rule 49. Place of dispute resolution.
The courts at New Delhi
shall have exclusive jurisdiction over any disputes arising under any composite
licence or production lease granted under the Act.
Form I
[See
rule 7(1)]
EXPLORATION
LICENCE
This deed for grant of an
exploration licence of composite licence ("Licence") is made by and
between the following:
PARTIES:
2
The President of India, acting through Ministry of Mines (the "Central
Government") represented by the administering authority.
AND
3
[Name of the Licensee] incorporated in India under the Companies Act, 2013 with
Corporate Identity Number [CIN], whose registered office is at [address of
registered office], India and principal place of business is at [address of
principal place of business, if different from registered office] OR [an
individual who is a citizen of India, having income tax permanent account
number [number], residing at [address] OR [persons listed in Schedule A
organised as a [firm/association of persons] in the name of [name of the firm
or association of individuals], all of whom are Indian citizens and resident in
India] (the "Licensee").
BACKGROUND:
(A)
The Licensee had participated in an
electronic auction for grant of a composite licence for [insert details of
licence area], as more specifically described in Schedule B, pursuant to which
the Licensee has become eligible for grant of a composite licence and the
Licensee has completed the requirements under the Offshore Areas Mineral
(Development and Regulation) Act, 2002 ("Act") and the rules made
thereunder for grant of a composite licence.
(B)
Accordingly, the Central Government is now
executing this deed for grant of a Licence to the Licensee in consideration of
the fee, royalties, covenants and agreements hereinafter reserved and contained
on the part of the Licence to be paid, observed and performed.
(1)
DEFINITIONS
The expressions used in this
Licence shall have the same meaning as ascribed to them under the Act and the
rules made thereunder.
(2)
GRANT OF LICENCE
The Central Government
hereby grants the Licence to the Licensee over an area described in Schedule B
("Licence Area") for conducting exploration operations for a period
of 3 (three) years, commencing from the date of the registration of the duly
executed licence deed with respect to the following mineral(s).
[name of the minerals]
("Minerals").
(3)
RIGHTS AND OBLIGATIONS
3.1.
The rights and obligations of the Central Government and the Licensee shall be
as specified in the Act and the rules made thereunder, including, without
limitation, the Offshore Areas Operating Right Rules, 2024.
3.2.
Without prejudice to the generality of the foregoing,
(a)
the Licensee shall-
(i)
at all times comply with the provisions of
the Act, the rules made thereunder and any other applicable law;
(ii)
make prompt payment of royalty and any
charges or other payment required to be made by the Licensee;
(iii)
pay compensation in accordance with the law
for the time being in force for the damage, injury, or disturbance which may be
done by the Licensee and to indemnify and keep indemnified the Central
Government and administering authority against all claims which may be made by
any person or persons in respect of any such damage, injury or disturbance and
all costs and expenses in connection therewith;
(iv)
take all necessary steps and measures for
enabling the natural rehabilitation of the seabed affected by exploration
operations, including any measures as may be specified by the Central
Government;
(v)
without delay forward to the Directorate
General of Shipping, Director General, Indian Coast Guard, Directorate General
of Mine Safety, administering authority and any other Government authority, a
report of any accident causing death or serious bodily injury or serious injury
to property or seriously affecting or endangering life or property which may
occur in the course of the operations under this Licence;
(vi)
weigh or measure, or cause to be weighed or
measured upon some part of the Licence Area, all minerals won from the Licence
Area, with [seven days] prior notice in writing being given to the
administering authority and authorised officer of the Indian Bureau of Mines
for every such weighing or measuring in order that he or some person on his
behalf may be present thereat;
(vii)
pay stamp duty and registration charges as
may be applicable in respect of this Licence;
(viii)
enter in the Licence Area and carry out
exploration operations for minerals specified in this deed in accordance with
the provisions of the Act and the rules made thereunder;
(ix)
work and carry on the exploration operations
in a proper, skilful and workman-like manner;
(x)
comply with the provisions of the Act and the
rules made thereunder including rules made under section 19A of the Act and
directions issued under section 21 of the Act;
(xi)
submit the following reports , namely:-
(a)
a quarterly report of the work done by the
Licensee stating the number of persons engaged and disclosing in full the geological,
geophysical, or other data collected during the period. The report shall be
submitted within a period of thirty days after the close of the quarter to
which it relates;
(b)
an annual report, containing the full details
of the work done by the Licensee and disclose all information acquired by the
Licensee in the course of the operations carried on under this Licence
regarding the geology and mineral resources of the area covered by the Licence.
The report shall be submitted within a period of sixty days after the close of
the year to which it relates:
to the Geological Survey of
India, administering authority, Indian Bureau of Mines and such other authority
as may be specified;
Provided that, subject to
provisions of the Act and the rules made thereunder, the Licensee may specify
that the whole or any part of reports and data furnished pursuant to this
sub-clause shall be kept confidential, and the concerned authorities shall
thereupon, keep such portions of the submitted reports and data as confidential
as may be deemed fit:
Provided further that the
Central Government may freely use such confidential reports and data for its
own purposes:
Provided also that if the
Licensee fails to apply for a production lease within the time period
stipulated in sub-section (6) of section 12 of the Act or if an application for
production lease preferred by the Licensee is rejected by the Central
Government or the administering authority, or upon termination or expiration of
the Licence or abandonment of exploration operations or surrender of excess
area in accordance with the first proviso to sub-rule (7) of rule 18 of the
Offshore Areas Mineral (Auction) Rules, 2024, whichever is earlier, all reports
and data submitted by the said Licensee shall become the sole property of the
Central Government.
(xii)
submit to the Central Government, at any time
before the performance security is returned to it or transferred to any other
account, or within a period of three months after the termination or expiration
of the Licence, or abandonment of the exploration operations, or surrender of
excess area in accordance with the first proviso to sub-rule (7) of rule 18 of
the Offshore Areas Mineral (Auction) Rules, 2024 whichever is earlier, a full
report of the work done by the Licensee, and disclose all information acquired
by the Licensee in the course of the exploration operations carried on under
this Licence regarding the geology and mineral resources of the Licence Area:
Provided that, subject to
provisions of the Act and the rules made thereunder, the Licensee may specify
that the whole or any part of the full report and data submitted by him shall
be kept confidential, and the Central Government shall thereupon keep such
portions of the submitted reports and data as confidential as may be deemed
fit:
Provided further that the
Central Government may freely use such confidential reports and data for its
own purposes:
Provided also that if the
Licensee fails to apply for a production lease within the time period
stipulated in sub-section (6) of section 12 of the Act or if an application for
production lease preferred by the Licensee is rejected by the Central
Government or the administering authority, or upon termination or expiration of
the Licence or abandonment of exploration operations or surrender of excess
area in accordance with the first proviso to sub-rule (7) of rule 18 of the
Offshore Areas Mineral (Auction) Rules, 2024, whichever is earlier, all
exploration data submitted by the said Licensee shall become the sole property
of the Central Government;
(xiii)
ensure that the equipments or vessels
deployed for the purpose are so placed, marked, buoyed and lighted as not to
constitute danger to shipping;
(xiv) ensure
that no interference is caused to any right of way in any recognised sea lanes for
the purposes of navigation, or for any other purpose as may be authorised by
the Central Government;
(xv)
take appropriate steps and measures as
specified by the Central Government to ensure systematic disposal of solid or
liquid waste, including hazardous waste, arising out of exploration operations
within the licence area;
(xvi) take
measures, as specified by the Central Government pertaining to prevention and
control of pollution and conservation of marine ecosystem in protected areas
including marine national parks, marine sanctuaries or any other area, as may
be specified by the Central Government.
(xvii) not
carry on or allow to be carried on, any exploration operations at any point
within a distance of five hundred metres from any telecommunication cables,
offshore wind turbine generators, offshore power sub-stations, oil platform or
pipelines, underwater archaeological sites, defence installations or any port
area, except under and in accordance with the prior approval of the competent
authority and any officer authorised by the administering authority or the
Central Government in this behalf and the said distance of five hundred metres
shall be measured from the outer edge of the relevant vessel, structure or
installation, as applicable.
(b)
the Central Government shall-
(i)
have the right, at all times to enter into
and upon and to grant or demise to any person or persons whomsoever, liberty to
enter into and upon the Licence Area for all or any purposes other than those
for which sole rights and Licence are hereby expressly conferred upon the
Licensee, including without limitation, to deploy on, over or through the
Licence Area such vessels, equipments, platforms, pipelines, telecommunication
cables and other such implements, as shall be considered necessary or expedient
for any purposes, and to obtain from and out of the Licence Area such stone,
earth or other materials as may be necessary or requisite for deploying,
repairing or maintaining such vessels, equipments, platforms, pipelines,
telecommunication cables and other such implements, to pass and repass at all
times over such area for all purposes and as occasion shall require;
(ii)
have the right to appropriate any performance
security provided by the Licensee in accordance with terms of such performance
security and require the Licensee to replenish the performance security. In
case the performance security has been provided through a security deposit,
after termination of the Licence and fulfilment of all obligations of the
Licensee, such security deposit shall be returned to the Licensee after
appropriate deductions. It is clarified that the security deposit shall not
carry any interest;
(iii)
have the right to carry out or perform any
work or matters which in accordance with the covenants in that behalf are to be
carried out or performed by the Licensee, but have not been so carried out or
performed within the time specified in that behalf, and the Licensee shall pay
the Central Government on demand all expenses which shall be incurred in
carrying out or performance of the same;
(iv)
have power to authorise any other
licensee/lessee or person in its behalf to enter into and upon the Licence Area
and (i) to search for, dig, raise and carry away petroleum and natural gas;
(ii) lay upon or maintain, repair or replace offshore wind turbine generators,
offshore power substations; (iii) for these purposes or any other purpose
authorised by the Central Government or the administering authority, as the
case may be, to sink, drive, erect, construct, maintain, and use such plant,
installations, pipeline, cables, waterways, engines, machineries and
conveniences as may be deemed necessary:
Provided that in the
exercise of such power no substantial hindrance or interference shall be caused
to the rights of the Licensee under these presents and that fair compensation,
as may be mutually agreed upon or in the event of disagreement as may be
decided by the administering authority, shall be paid-
(i)
by such licensee/lessee or such other person
to the Licensee for any loss or damage sustained by the Licensee by reason of
the exercise of this power by the Central Government, as the case may be;
(ii)
to such licensee/lessee or such other person
by the Licensee for any loss or damage sustained by such licensee/lessee or
such other person by reason of the exercise of this power by the Central
Government, as the case may be; and
(v)
have the power to grant and demise to any
other licensee or lessee or operator duly authorised by the government
authority the power to enter into and upon the said areas and to lay pipelines
or install pumping station for the purposes of extracting petroleum or natural
gas by such licensee or lessee or operator duly authorised by the government
authority and the Licensee shall use its best efforts to avoid obstructions to
or interference with any petroleum operations or any operations pertaining to
offshore wind power projects or such other operations being carried out or
proposed to be carried out by an operator, duly authorised by the Government
authority within the Licence Area.
3.3.
If the Central Government is desirous of exercising its right of pre-emption
with respect to any mineral(s), the Central Government shall pay the average
sale price of such minerals as published by the Indian Bureau of Mines
prevailing at the time of pre-emption.
3.4.
In the event of the existence of a state of war or emergency (of which
existence the President of India shall be the sole judge and a notification to
this effect in the Gazette of India shall be conclusive proof) the Central
Government shall at all times during the said term have the right (to be
exercised by a notice in writing to the Licensee) to forthwith take possession
and control of the vessels, installations, platforms, pipelines, plants,
machineries, equipments and premises of the Licensee on or in connection with
the Licence Area or the operations under this Licence and during such
possession or control, the Licensee shall conform to and obey all directions
given by or on behalf of the Central Government regarding the use of employment
of such vessels, installations, platforms, pipelines, plants, machineries,
equipments, premises and minerals, provided that fair compensation, which shall
be determined in default of agreement by the Central Government shall be paid
to the Licensee for all loss or damage sustained by him/them by reason or in
consequence of the exercises of the powers conferred by this clause and
provided also that the exercise of such power shall not terminate the said term
hereby granted or affect the terms and provisions of this clause.
3.5.
Every notice required to be given to the Licensee shall be given in writing to
such person as may be nominated by the Licensee and such nomination shall be
informed to the administering authority in writing. If no such nomination is
made then the notice shall be sent to the Licensee by registered post/ speed
post/ e-mail addressed to the Licensee at the address shown in the application
for the Licence or at such other address in India as the Licensee may designate
and every such service shall be deemed to be proper and valid service upon the
Licensee and shall not be questioned or challenged by him.
3.6.
If in any event the orders of the administering authority are revised, reviewed
or cancelled by the Central Government in pursuance of proceedings under the
Offshore Areas Operating Right Rules, 2024, the Licensee shall not be entitled
to compensation for any loss sustained by the Licensee in exercise of the
powers and privileges conferred upon the Licensee by these presents.
(4)
FORCE MAJEURE
4.1.
In this clause the expression "force majeure" means act of god, war,
insurrection, riot, civil commotion, strike, earthquake, storm, tidal wave,
flood, lightning, explosion, fire, or any other happening which the Licensee
could not reasonably prevent or control.
4.2.
Failure on the part of the Licensee to fulfil any of the terms and conditions
of this Licence shall not give the Central Government any claim against the
Licensee or be deemed a breach of this Licence, in so far as such failure is
considered by the Central Government to arise from a force majeure, and if the
fulfilment by the Licensee of any of the terms and conditions of this Licence
be delayed from force majeure, the period of such delay shall be added to the
period fixed by this Licence.
4.3.
The administering authority or the Central Government shall not be liable in
any manner, whatsoever, to the Licensee in respect of any loss relating to, or
arising out of, the occurrence or existence of any force majeure.
(5)
GOVERNING LAW
This Licence and all
questions of its interpretation shall be construed in accordance with the laws
of India. Subject to the provisions contained in section 28 of the Act, the
courts at New Delhi shall have exclusive jurisdiction over disputes arising
under this deed.
In witness whereof there
presents have been executed at the [name of place] on [date].
SCHEDULE A
LIST
OF PERSONS
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S. No
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Name
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PAN Number
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Address
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SCHEDULE B
AREA
OF EXPLORATION LICENCE
(Description
of offshore area, including latitudes and longitudes, to be provided.)
Form
II
[See
rule 8(1) (b)]
FORMAT
OF APPLICATION BY HOLDER OF COMPOSITE LICENCE FOR GRANT OF PRODUCTION LEASE
To
[Address]
I/We request that a
production lease under these rules be granted to me/us.
|
S. No.
(1)
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Item Detail
(2)
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Particulars
(3)
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1.
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Name of applicant with address (In case of a firm or
other association of individuals, provide names of each person constituting
the firm or the association of individuals, as the case may be.)
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2.
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Address of the applicant (In case of a firm or other
association of individuals, provide addresses of each person constituting the
firm or the association of individuals, as the case may be.)
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3.
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Status of the applicant
• Individual
• Firm
• Other association of individuals
• Company
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4.
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Composite licence number
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5.
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Date of registration of exploration licence deed of
composite licence and the date of expiry
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6.
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Application fee payable (to be calculated at the rate
of rupees five lakh per standard block.)
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7.
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Name of bank, demand draft or challan number with date,
through which application fee has been paid.
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8.
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Mineral (s) for which the production lease is being
applied for
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9.
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Extent of the area for which production lease is
required [Nos of standard blocks included in the Licence Area and boundary
co-ordinates of the proposed area to be under production lease]
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Yes/No
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10.
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Geo co-ordinates of the area
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11.
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NHO Chart number
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12.
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Particulars of any licence or lease granted by any
government authority, including in relation to petroleum and natural gas or
wind power project, or any infrastructure projects such as port, cable,
pipeline in existence in the area applied for
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13.
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Whether the area applied for, forms part of a marine
national park or marine sanctuary or other protected areas, as specified by
the Central Government.
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Yes/No
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14.
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If yes, enclose the map of marine national park or
marine sanctuary or other protected areas, as specified by the Central
Government with area under application marked. If such map is not available,
the area should be marked on sketch plan drawn to scale showing all the
features.
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15.
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Subject to the provisions of section 13A of the
Offshore Areas Mineral (Development and Regulation) Act, 2002, particulars of
the area mineral-wise in the offshore areas for which the applicant
individually or jointly-
(a) already holds under a production lease;
(b)has applied for a production lease but not granted;
and
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(c) being applied for a production lease
simultaneously.
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16.
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Has the applicant carried out the exploration
operations over the area held under the composite licence and prepared the
geological report in conformity with the Offshore Areas (Existence of Mineral
Resources) Rules, 2024?
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Yes/No
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17.
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Has the copy of geological report been attached with
the application form?
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Yes/No
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18.
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Has the applicant committed any breach of the terms and
conditions of the composite licence?
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Yes/No
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19.
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Has the applicant become ineligible under the
provisions of the Act?
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Yes/No
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20.
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Has the applicant made an application within the time
period specified in clause (c) of first proviso to sub-section (6) of section
12 of the Act?
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Yes/No
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21.
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Has the applicant been convicted for illegal mining by
any court?
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Yes/No
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I/We do hereby declare that
the particulars furnished above are correct and am/are ready to furnish any
other details including accurate plans and1st instalment of Upfront Payment, as
may be required by you.
Yours faithfully
Date:
Place:
Signature of the applicant
Instructions to applicants:
(a)
The applicant must submit a valid clearance
certificate in the form specified by the administering authority, of payment of
dues, such as royalty or fixed rent and other payment payable under the Act or
the rules made thereunder, along with the application:
Provided that in case the
applicant is a firm or association of individuals such certificate shall be
furnished by all partners of the firm or, as the case may be, all members of
the association of individuals:
Provided further that where
a person has furnished an affidavit to the satisfaction of the administering
authority stating that he does not hold and has not held an operating right
other than the composite licence, it shall not be necessary for him to produce
the said valid clearance certificate:
Provided also that the grant
of a clearance certificate shall not discharge the holder of such certificate
from the liability to pay any dues which may subsequently be found to be
payable by him under the Act or the rules made thereunder.
(b)
The application must be signed by a duly
authorised representative of the applicant, in case the applicant is a company.
In case the applicant is an individual, the applicant must personally sign the
application. In case of a firm or association of individuals, all the persons
constituting the firm or association of individuals shall sign the application.
(c)
The corporate authorisation of the authorised
signatory of the applicant (which is a company) must be enclosed with the
application. Any change in such corporate authorisation must be immediately
intimated to the administering authority.
Form III
[See
rule 8(1)(b)]
FORMAT
OF PRODUCTION LEASE
This deed for grant of a
production lease ("Lease") is made by and between the following:
PARTIES:
2
The President of India, acting through Ministry of Mines (the "Central
Government") represented by the administering authority.
AND
3
[Name of the Lessee] [incorporated in India under the Companies Act, 2013 with
Corporate Identity Number [CIN], whose registered office is at [address of
registered office], India and principal place of business is at [address of
principal place of business, if different from registered office] OR [an
individual who is a citizen of India, having income tax permanent account
number [number], residing at [address] OR [persons listed in Schedule A
organised as a [firm/association of persons] in the name of [name of the firm
or association of individuals], all of whom are Indian citizens and resident in
India] (the "Lessee").
BACKGROUND:
(a)
The Lessee [had participated in an electronic
auction for grant of a production lease, pursuant to which the Lessee has
become eligible for grant of a production lease] OR [had participated in an
electronic auction for grant of a composite licence, pursuant to which he/it
has completed the exploration operations and has become eligible for grant of a
production lease] under the Offshore Areas Mineral (Development and Regulation)
Act, 2002 ("Act") and the rules made thereunder for grant of a
production lease].
(b)
Accordingly, the Central Government is now
executing this deed for grant of a Lease to the Lessee in consideration of the
fee, royalties, covenants and agreements hereinafter reserved and contained on
the part of the Lessee to be paid, observed and performed.
(1)
DEFINITIONS
The expressions used in this
Lease shall have the same meaning as ascribed to them under the Act and the
rules made thereunder.
(2)
GRANT OF LEASE
2.1.
The Central Government hereby grants the Lease to the Lessee over an area
described in Schedule B ("Lease Area") for conducting production
operations for a period of 50 (fifty) years, commencing from the date on which
this duly executed production lease deed is registered with respect to the
following mineral(s):- [name of the minerals] ("Minerals").
2.2.
The Lease shall be with respect to all deposits of the Minerals situated, lying
or being in or under the Lease Area.
2.3.
Subject to the Lessee paying the royalties and making other payments required
to be paid and observing and performing all the covenants and agreements herein
contained and on the part of the Lessee to be observed and performed shall and
may quietly hold and enjoy the rights and premises of the Lease Area for and
during the term hereby granted without any unlawful interruption from or by the
Central Government, or any person rightfully claiming under it.
(3)
RIGHTS AND OBLIGATIONS
3.1.
The rights and obligations of the Central Government and the Lessee shall be as
specified in the Act and the rules made thereunder, including without
limitation to the Offshore Areas Operating Right Rules, 2024 and the Offshore
Mineral Development and Production Agreement dated [date].
3.2.
Without prejudice to the generality of the foregoing,
(a)
the Lessee shall-
(i)
at all times comply with the provisions of
the Act, the rules made thereunder and any other applicable law;
(ii)
make prompt payment of royalty and any
charges or other payment required to be made by the Lessee;
(iii)
pay compensation in accordance with the law
for the time being in force for the damage, injury, or disturbance which may be
done by the Lessee and to indemnify and keep indemnified the Central Government
and administering authority against all claims which may be made by any person
or persons in respect of any such damage, injury or disturbance and all costs
and expenses in connection therewith;
(iv)
take all necessary steps and measures, for
enabling the natural rehabilitation of the seabed affected by production
operations, including any measures as may be specified by the Central
Government;
(v)
without delay forward to the Directorate
General of Shipping, Director General, Indian Coast Guard, Directorate General
of Mine Safety, administering authority and any other Government authority, a
report of any accident causing death or serious bodily injury or serious injury
to property or seriously affecting or endangering life or property which may
occur in the course of the operations under this Lease;
(vi)
weigh or measure, or cause to be weighed or
measured upon some part of the Lease Area, all the produced and dispatched
minerals from the Lease Area with seven days prior notice in writing being
given to the administering authority and authorised officer of the Indian
Bureau of Mines for every such weighing or measuring in order that he or some
person on his behalf may be present thereat;
(vii)
pay stamp duty and registration charges as
may be applicable in respect of this deed;
(viii)
during the term of the Lease, enter upon the
Lease Area and carry out production operations for minerals specified in this
deed, in accordance with the provisions of the Act and the rules made
thereunder;
(ix)
comply with the provisions of the Act and the
rules made thereunder including rules made under section 19A of the Act and
directions issued under section 21 of the Act;
(x)
prior to their deployment, ensure that all
vessels, to be deployed and installations to be erected in the Lease Area by
the Lessee or by the contracted companies, shall undergo and clear naval
security inspection of the Indian Navy under the aegis of the Flag Officer
Commanding-in-Chief of the concerned Naval Command and Flag Officer, Offshore
Defence Advisory Group and a clear one months notice shall be given by the
Lessee to the aforesaid offices to facilitate such inspection and clearance;
(xi)
take measures, as specified by the Central
Government pertaining to prevention and control of pollution and conservation
of marine ecosystem in protected areas including marine national parks, marine
sanctuaries or any other area, as may be specified by the Central Government;
(xii)
not carry on or allow to be carried on, any
production operations at any point within a distance of five hundred metres
from any telecommunication cables, offshore wind turbine generators, offshore
power sub-stations, oil platform or pipelines, underwater archaeological sites,
defence installations or any port area, except under and in accordance with the
prior approval of the competent authority, and any officer authorised by the
administering authority or the Central Government in this behalf and the said
distance of five hundred metres shall be measured from the outer edge of the
relevant vessel, structure or installation, as applicable;
(xiii)
furnish -
(a)
an annual report, containing the full details
of the work done by the Lessee and disclose all information acquired by the
Lessee in the course of the operations carried on under this Lease regarding
the geology and mineral resources of the area covered by the Lease to the
Geological Survey of India, administering authority, Indian Bureau of Mines and
such other authority as may be specified. The report shall be submitted within
a period of sixty days after the close of the year to which it relates;
(b)
submit to the Central Government, at any time
before the performance security is returned to it or transferred to any other
account, or within a period of three months after the expiration or termination
or abandonment or surrender of the Lease, whichever is earlier, a full report
of the work done by the Lessee, and disclose all information acquired by the
Lessee in the course of the production operations carried on under this Lease
regarding the geology and mineral resources of the Lease Area:
Provided that, subject to
provisions of the Act and the rules made thereunder, the Lessee may specify
that the whole or any part of the reports and data submitted by him pursuant to
clause 3.2 (a) (xiii) above shall be kept confidential, and the concerned
authorities shall thereupon, keep such portions of the submitted reports and
data as confidential as may be deemed fit:
Provided further that the
Central Government may freely use such confidential reports and data for its
own purposes:
Provided also that upon
termination or expiration or surrender or abandonment of the Lease, whichever
is earlier, all reports and data submitted by the said Lessee shall become the
sole property of the Central Government.
(xiv) ensure
that no interference is caused to any right of way in any recognised sea lanes
for the purposes of navigation, or for any other purpose as may be authorised
by the Central Government;
(xv)
erect, maintain, display and keep in repair
all notices or floaters or signage or buoys, marking the boundary of the Lease
Area to the satisfaction of the administering authority and other concerned
government authorities, including the Indian Coast Guard and the Indian Navy;
and
(xvi) take
appropriate steps and measures as specified by the Central Government to ensure
systematic disposal of solid or liquid waste, including hazardous waste,
arising out of production operations, beneficiation or processing operations
within the lease area;
(xvii) work
and carry on the production operations in a proper, skilful and workman-like
manner.
(b)
the Central Government shall-
(i)
have the right, at all times to enter into
and upon and to grant or demise to any person or persons whomsoever, liberty to
enter into and upon the Lease Area for all or any purposes other than those for
which sole rights and Lease are hereby expressly conferred upon the Lessee,
including without limitation, to deploy on, over or through the Lease Area such
vessels, equipments, platforms, pipelines, telecommunication cables and other
such implements as shall be considered necessary or expedient for any purposes,
and to obtain from and out of the Lease Area such stone, earth or other
materials as may be necessary or requisite for deploying, repairing or
maintaining such vessels, equipments, platforms, pipelines, telecommunication
cables and other such implements, to pass and repass at all times over such
area for all purposes and as occasion shall require;
(ii)
have the right to appropriate any performance
security provided by the Lessee in accordance with terms of such performance
security and require the Lessee to replenish the performance security. In case
the performance security has been provided through a security deposit, after
termination of the Lease and fulfilment of all obligations of the Lessee, such
security deposit shall be returned to the Lessee after appropriate deductions.
It is clarified that the security deposit shall not carry any interest; and
(iii)
have the right to carry out or perform any
work or matters which in accordance with the covenants in that behalf are to be
carried out or performed by the Lessee, but have not been so carried out or
performed within the time specified in that behalf, and the Lessee shall pay
the Central Government on demand all expenses which shall be incurred in
carrying out or performance of the same.
(iv)
have power to authorise any other
licensee/lessee or person in its behalf to enter into and upon the Lease Area
and (i) to search for, dig, raise and carry away petroleum and natural gas;
(ii) lay upon or maintain, repair or replace offshore wind turbine generators,
offshore power sub-stations; (iii) for these purposes or any other purpose
authorised by the Central Government or the administering authority, as the
case may be, to sink, drive, erect, construct, maintain, and use such plants,
installations, pipeline, cables, waterways, engines, machineries and
conveniences as may be deemed necessary:
Provided that in the
exercise of such power no substantial hindrance or interference shall be caused
to the rights of the Lessee under these presents and that fair compensation, as
may be mutually agreed upon or in the event of disagreement as may be decided
by the administering authority, shall be paid-
(i)
by such licensee/lessee or such other person
to the Lessee for any loss or damage sustained by the Lessee by reason of the
exercise of this power by the Central Government, as the case may be;
(ii)
to such licensee/lessee or such other person
by the Lessee for any loss or damage sustained by such licensee/lessee or such
other person by reason of the exercise of this power by the Central Government,
as the case may be; and
(v)
have the power to grant and demise to any
other licensee or lessee or operator duly authorised by the government
authority the power to enter into and upon the said areas and to lay pipelines
or install pumping station for the purposes of extracting petroleum or natural
gas by such licensee or lessee or operator duly authorised by the government authority
and the Lessee shall use its best efforts to avoid obstructions to or
interference with any petroleum operations or any operations pertaining to
offshore wind power projects or such other operations being carried out or
proposed to be carried out by an operator, duly authorised by the Government
authority within the Lease Area.
3.3.
If the Central Government is desirous of exercising its right of pre-emption
with respect to any mineral(s), the Central Government shall pay the average
sale price of such minerals as published by the Indian Bureau of Mines
prevailing at the time of pre-emption.
3.4.
In the event of the existence of a state of war or emergency (of which
existence the President of India shall be the sole judge and a notification to
this effect in the Gazette of India shall be conclusive proof) the Central
Government shall at all times during the said term have the right (to be
exercised by a notice in writing to the Lessee) to forthwith take possession
and control of the vessels, installations, platforms, pipelines, plants,
machineries, equipments and premises of the Lessee on or in connection with the
Lease Area or the operations under this Lease and during such possession or
control, the Lessee shall conform to and obey all directions given by or on
behalf of the Central Government regarding the use of employment of such
vessels, installations, platforms, pipelines, plants, machineries, equipments,
premises and minerals, provided that fair compensation, which shall be
determined in default of agreement by the Central Government shall be paid to
the Lessee for all loss or damage sustained by him/them by reason or in
consequence of the exercises of the powers conferred by this clause and
provided also that the exercise of such power shall not terminate the said term
hereby granted or affect the terms and provisions of this clause.
3.5.
Every notice required to be given to the Lessee shall be given in writing to
such person as may be nominated by the Lessee and such nomination shall be
informed to the administering authority in writing. If no such nomination is
made, then the notice shall be sent to the Lessee by registered post/speed
post/ e-mail addressed to the Lessee at the address shown in the application
for the Lease or at such other address in India as the Lessee may designate and
every such service shall be deemed to be proper and valid service upon the
Lessee and shall not be questioned or challenged by him.
3.6.
If in any event the orders of the administering authority are revised, reviewed
or cancelled by the Central Government in pursuance of proceedings under the
Offshore Areas Operating Right Rules, 2024, the Lessee shall not be entitled to
compensation for any loss sustained by the Lessee in exercise of the powers and
privileges conferred upon the Lessee by these presents.
(4)
FORCE MAJEURE
4.1.
In this clause the expression "force majeure" means act of god, war,
insurrection, riot, civil commotion, strike, earthquake, storm, tidal wave,
flood, lightning, explosion, fire, or any other happening which the Lessee
could not reasonably prevent or control.
4.2.
Failure on the part of the Lessee to fulfil any of the terms and conditions of
this Lease shall not give the Central Government any claim against the Lessee
or be deemed a breach of this Lease, in so far as such failure is considered by
the Central Government to arise from a force majeure, and if the fulfilment by
the Lessee of any of the terms and conditions of this Lease be delayed from
force majeure, the period of such delay shall be added to the period fixed by
this Lease.
4.3.
The administering authority or the Central Government shall not be liable in
any manner, whatsoever, to the Lessee in respect of any loss relating to, or
arising out of, the occurrence or existence of any force majeure.
(5)
GOVERNING LAW
This Lease and all questions
of its interpretation shall be construed in accordance with the laws of India.
Subject to the provisions contained in section 28 of the Act, the courts at New
Delhi shall have exclusive jurisdiction over disputes arising under this deed.
In witness whereof there
presents have been executed at the [name of place] on [date].
SCHEDULE A
LIST
OF PERSONS
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S. No
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Name
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PAN Number
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Address
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SCHEDULE B
AREA
OF PRODUCTION LEASE
(Description
of offshore area, including latitudes and longitudes, to be provided.)
Form
IV
[See
rule 15(2)]
FORMAT
OF TRANSFER APPLICATION
To
[Address]
I/We request for seeking
transfer of production lease/ composite licence.
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S. No.
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Item Detail
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Particulars
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(1)
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(2)
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(3)
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1.
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Name of the transferor
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2.
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Address of the transferor
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3.
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Name of the transferee
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4.
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Address of the transferee
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5.
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Production lease/composite licence number
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6.
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Particulars of any licence or lease granted by any
government authority, including in relation to petroleum and natural gas or
wind power project, or any infrastructure projects such as port, cable,
pipeline in existence in the area applied for
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7.
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Date of registration of production lease/composite
licence
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8.
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Whether the transferee is eligible to hold the
production lease/composite licence in accordance with the provisions of the
Act and the rules made thereunder?
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Yes/No
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9.
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The consideration payable by the transferee, including
the consideration in respect of the exploration operations already undertaken
and the reports and data generated during the operations.
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10.
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Whether the transferee is agreeable to accept all the
conditions and liabilities under any law for the time being in force which
the transferor was subject to in respect of such a production lease/composite
licence.
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Yes/No
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We do hereby declare that
the particulars furnished above are correct and am/are ready to furnish any
other details, as may be required by you.
The transferee and
transferor also undertake to comply with the provisions of section 13B of the
Act and the Offshore Areas Operating Right Rules, 2024 with respect to the
transfer of the production lease/composite licence.
Yours faithfully,
Transferor
................
Transferee
................
Place: ................
Date: ................
Instructions to applicants:
(a)
The application must be signed by a duly
authorised representative of the applicants, in case the applicant is a
company. In case the applicant is an individual, the applicant must personally
sign the application. In case of a firm or association of individuals, all the
persons constituting the firm or association of individuals shall sign the
application.
(b)
The corporate authorisation of the authorised
signatory of the applicant (which is a company) must be enclosed with the
application. Any change in such corporate authorisation must be immediately
intimated to the Central Government.
(c)
Documentary evidence to confirm eligibility
of the transferee to hold the production lease/composite licence in accordance
with the provisions of the Act and the rules made thereunder, must be submitted
along with the application.
Form V
[See
rule 15(6)]
TRANSFER
DEED
PART
A
FORMAT
OF TRANSFER DEED FOR COMPOSITE LICENCE
The Transfer Deed
("Deed") is made on this [day] day of [month], [year] between:
(1)
(Name of the person with address and
occupation) (hereinafter referred to as the "Transferor" which
expression shall where the context so admits be deemed to include his heirs,
executors, administrators, representatives and permitted assigns); or
(Name of person with address
and occupation) and (Name of person with address and occupation) (hereinafter
referred to as the "Transferor" which expression shall where the
context so admits be deemed to include their respective heirs, executors,
administrators, representatives and their permitted assigns); or
(Name of the person with address
of all the partners) all carrying on business in partnership under the firm
name and style of (Name of the firm) registered under the Indian Partnership
Act, 1932 (9 of 1932) and having their registered office at [address]
(hereinafter referred to as the "Transferor" which expression where
the context so admits be deemed to include all the said partners, their
respective heirs, executors, legal representatives and permitted assigns; or
(Name of Company), a company
registered under the (Act under which incorporated) and having its registered
office at [address] (hereinafter referred to as the "Transferor"
which expression shall where the context so admits be deemed to include its
successors and permitted assigns) of the first part;
AND
(2)
(Name of person with the address and
occupation) (hereinafter referred to as the "Transferee" which
expression shall where the context so admits be deemed to include his heirs,
executors, administrators, representatives and permitted assigns; or
(Name of the person with address
and occupation) and (Name of person with address and occupation) (hereinafter
referred to as the "Transferee" which expression shall where the
context so admits be deemed to include their respective heirs, executors,
administrators, representatives and their permitted assigns; or
(Name and address of all the
partners) all carrying on business in partnership under the firm name and style
of (Name of the firm) registered under the Indian Partnership Act, 1932 (9 of
1932) and having their registered office at [address] (hereinafter referred to
as the "Transferee" which expression where the context so admits be
deemed to include all the said partners, their respective heirs, executors,
legal representatives and permitted assigns; or
(Name of the Company), a
company registered under (Act under which incorporated) and having its
registered office at [address] (hereinafter referred to as the
"Transferee" which expression shall where the context so admits be
deemed to include its successors and permitted assigns) of the second part;
AND
(3)
The President of India acting through
Ministry of Mines represented by the administering authority (hereinafter
referred to as the "Central Government" which expression shall where
the context so admits be deemed to include the successors and assigns) of the
third part.
WHEREAS:
(A)
The Transferor has been granted a Composite
Licence by the Central Government through auction on [date] ("Composite
Licence") and a copy of the Exploration Licence Deed of the Composite
Licence in attached hereto as Annexure A.
(B)
In terms of the Composite Licence, the
Transferor is entitled to conduct Exploration Operations of the area under the
Composite Licence (more particularly set out in Annexure B) ("Licence
Area") to ascertain existence of mineral resources in accordance with the
Offshore Areas (Existence of Mineral Resources) Rules, 2024, for the term and
subject to the payment of the applicable fees and royalties and observance and
performance of the Transferors covenant and conditions in the Composite Licence
including a covenant not to transfer the Composite Licence in violation of
applicable laws.
(C)
The Transferor has, pursuant to its transfer
application letter dated [date], requested the administering authority for its
approval in connection with transfer of the Composite Licence to the
Transferee.
(D)
The administering authority has, pursuant to
its letter dated [date] conveyed approval of the Central Government to the
transfer application of the Transferor subject to compliance by the Transferee
of the terms and conditions contained in this Deed.
NOW THIS DEED WITNESSETH AS
FOLLOWS:
(1)
Capitalised terms used but not defined in
this Deed shall, unless the context otherwise requires, have the respective
meanings ascribed thereto in the Composite Licence or the Offshore Areas
Mineral (Development and Regulation) Act, 2002, ("Act") and the rules
made thereunder as the case may be.
(2)
The Transferee hereby covenants with the
Central Government that from and after the transfer and assignment of the Composite
Licence, the Transferee shall be bound by, and be liable to perform, observe
and conform and be subject to all the provisions of all the covenants,
stipulations and conditions contained in the Composite Licence in the same
manner in all respects as if the Composite Licence had been granted to the
Transferee as the licensee thereunder and he/ it had originally executed it as
such.
(3)
It is further hereby agreed and declared by
the Transferor of the one part and the Transferee of the other part that:
3.1.
The Transferee and the Transferor declare that the Transferee meets and shall
continue to meet all the eligibility conditions which were required to be met
by the Transferor for grant of the Composite Licence.
3.2.
The Transferor and the Transferee declare that they have ensured that the
mineral rights over the Licence Area for which the Composite Licence is being
transferred vest in the Central Government.
3.3.
The Transferee acknowledges that he/ it has received a copy of, and has read
and understands the Composite Licence, and covenants, agrees and confirms that
it shall be bound by all provisions of the Composite Licence as if it was an
original party thereto.
3.4.
The Transferor hereby declares that he/ it has not assigned or in any other
manner transferred the Composite Licence now being transferred and that no
other person or persons has any right, title or interest where under in the
present Composite Licence being transferred.
3.5.
The Transferee hereby declares that he/ it has accepted all the conditions and
liabilities which the Transferor was having in respect of such Composite
Licence.
3.6.
The Transferee further declares that he/ it is financially capable of and shall
directly undertake exploration operations.
3.7.
The Transferor has supplied to the Transferee the original or certified copies
of all maps, sections, plans of exploration and abandoned area in the Licence
Area.
3.8.
The Transferee hereby further declares that as a consequence of this transfer,
the total area while held by him/ it under operating rights are not in
contravention of the provisions of the Act or the rules made thereunder.
3.9.
The Transferor has paid all fees, royalties, and other dues towards the Central
Government till the date, in respect of the Composite Licence.
In witness whereof the
parties hereto have signed on the, date and year first above written.
For and on behalf of the
Central Government:
Name:
Designation:
For and on behalf of the
Transferor:
Name:
For and on behalf of the
Transferee:
Name:
ANNEXURE A:
Copy of Exploration Licence
Deed of the Composite Licence
ANNEXURE B:
Location and area of the
Composite Licence
[Particulars of area,
including Geo-coordinates, latitude and longitude, to be provided]
PART B
FORMAT
OF TRANSFER DEED FOR PRODUCTION LEASE
The Transfer Deed
("Deed") is made on this [day] day of [month], [year] between:
(1)
(Name of the person with address and
occupation) (hereinafter referred to as the "Transferor" which
expression shall where the context so admits be deemed to include his heirs,
executors, administrators, representatives and permitted assigns); or
(Name of person with address
and occupation) and (Name of person with address and occupation) (hereinafter
referred to as the "Transferor" which expression shall where the
context so admits be deemed to include their respective heirs, executors,
administrators, representatives and their permitted assigns); or
(Name of the person with
address of all the partners) all carrying on business in partnership under the
firm name and style of (Name of the firm) registered under the Indian
Partnership Act, 1932 (9 of 1932) and having their registered office at
[address] (hereinafter referred to as the "Transferor" which
expression where the context so admits be deemed to include all the said
partners, their respective heirs, executors, legal representatives and
permitted assigns); or
(Name of Company), a company
registered under the (Act under which incorporated) and having its registered
office at [address] (hereinafter referred to as the "Transferor"
which expression shall where the context so admits be deemed to include its
successors and permitted assigns) of the first part;
AND
(2)
(Name of person with the address and
occupation) (hereinafter referred to as the "Transferee" which
expression shall where the context so admits be deemed to include his heirs,
executors, administrators, representatives and permitted assigns; or
(Name of the person with
address and occupation) and (Name of person with address and occupation)
(hereinafter referred to as the "Transferee" which expression shall
where the context so admits be deemed to include their respective heirs,
executors, administrators, representatives and their permitted assigns; or
(Name and address of all the
partners) all carrying on business in partnership under the firm name and style
of (Name of the firm) registered under the Indian Partnership Act, 1932 (9 of
1932) and having their registered office at [address] (hereinafter referred to
as the "Transferee" which expression where the context so admits be
deemed to include all the said partners, their respective heirs, executors,
legal representatives and permitted assigns; or
(Name of the Company), a
company registered under (Act under which incorporated) and having its
registered office at [address] (hereinafter referred to as the
"Transferee" which expression shall where the context so admits be
deemed to include its successors and permitted assigns) of the second part;
AND
(3)
The President of India acting through
Ministry of Mines represented by the administering authority (hereinafter
referred to as the "Central Government" which expression shall where
the context so admits be deemed to include the successors and assigns) of the
third part.
WHEREAS:
(A)
The Transferor has been granted a production
lease by the Central Government in respect of which the Central Government and
the Transferor have executed:
(a)
a Offshore Mineral Development and Production
Agreement, dated [date]; and
(b)
a lease deed dated [date] and registered as
no. [number] on [date] [ at the office of the Sub-Registrar] of [address] in
connection with the production lease (collectively "Concession
Documents") and the same is attached hereto as Annexure A.
(B)
In terms of the Concession Documents, the
Transferor is entitled to search for, win and work offshore mines and minerals
in respect of (Name of minerals) in the offshore area described in the
schedules to the Concession Documents (more particularly set out in Annexure B)
("Lease Area"), for the term and subject to the payment of the rents
and royalties and observance and performance of the Transferors covenant and
conditions in the Concession Documents including a covenant not to transfer the
production lease in violation of applicable laws.
(C)
The Transferor has, pursuant to its transfer
application letter dated [date], requested the administering authority for its
approval in connection with transfer of the production lease to the Transferee.
(D)
The administering authority has, pursuant to
its letter dated [date] conveyed approval of the Central Government to the
transfer application of the Transferor subject to compliance by the Transferee
of the terms and conditions contained in this Deed.
NOW THIS DEED WITNESSETH AS
FOLLOWS:
(1)
Capitalised terms used but not defined in
this Deed shall, unless the context otherwise requires, have the respective
meanings ascribed thereto in the Concession Documents or the Offshore Areas
Mineral (Development and Regulation) Act, 2002 ("Act") and the rules
made thereunder as the case may be.
(2)
The Transferee hereby covenants with the
Central Government that from and after the transfer and assignment of the
production lease, the Transferee shall be bound by, and be liable to perform,
observe and conform and be subject to all the provisions of all the covenants,
stipulations and conditions contained in the Concession Documents in the same
manner in all respects as if the production lease had been granted to the
Transferee as the lessee thereunder and he/ it had originally executed the
Concession Documents as such.
(3)
It is further hereby agreed and declared by
the Transferor of the one part and the Transferee of the other part that:
3.1.
The Transferee and the Transferor declare that the Transferee meets and shall
continue to meet all the eligibility conditions which were required to be met
by the Transferor for grant of the production lease.
3.2.
The Transferor and the Transferee declare that they have ensured that the
mineral rights over the Lease Area for which the production lease is being
transferred vest in the Central Government.
3.3.
The Transferee acknowledges that he/ it has received a copy of, and has read
and understands the Concession Documents, and covenants, agrees and confirms
that it shall be bound by all provisions of the Concession Documents as if it
was an original party thereto.
3.4.
The Transferor hereby declares that he/ it has not assigned or in any other
manner transferred the production lease now being transferred and that no other
person or persons has any right, title or interest where under in the present
production lease being transferred.
3.5.
The Transferee hereby declares that he/ it has accepted all the conditions and
liabilities which the Transferor was having in respect of such production
lease.
3.6.
The Transferor has supplied to the Transferee the original or certified copies
of all maps, sections and plans of abandoned workings in the Lease Area.
3.7.
The Transferee hereby further declares that as a consequence of this transfer,
the total area while held by him/ it under operating rights are not in
contravention of the provisions of the Act or the rules made thereunder.
3.8.
The Transferor has paid all the rent, royalties, and other dues towards the
Central Government till the date, in respect of the production lease.
In witness whereof the
parties hereto have signed on the, date and year first above written.
For and on behalf of the
Central Government:
Name:
Designation:
For and on behalf of the
Transferor:
Name:
For and on behalf of the
Transferee:
Name:
ANNEXURE A:
Copy of Concession Documents
ANNEXURE B:
Location and area of the
production lease
[Particulars of area,
including Geo-coordinates, latitude and longitude, to be provided]
Form VI
[See
rule 15(9)]
(Notice
of transfer of composite licence or production lease)
IMPORTANT
INSTRUCTIONS FOR FILLING THE FORM
(i)
This Form, duly filled in must reach the
concerned authorities as prescribed within the rule, within a period of thirty
days of the date of such transfer, by online or Email.
(ii)
This should also be sent to the Regional
Controller in whose territorial jurisdiction the operating right falls as
notified by the Controller General.
(iii)
The Form should be digitally signed by the
concerned person.
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1.
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Type of Operating Right
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Check which is applicable
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(a) Composite licence
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(b) Production lease
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2
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IBM Registration Number
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3.
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Unique IBM Operating Right Number
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(a) Composite licence
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(b) Production lease Code
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4.
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Mine Code
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5.
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Name of Mine
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6.
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Name of the mineral or minerals for which composite
licence or production lease has been granted
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(Information will be system generated)
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7.
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Name and address of the Operating Right holder
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(Information will be system generated)
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8.
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Particulars of the Operating Right
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(Information will be system generated)
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9.
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Location of the lease area/ licence area
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(Information will be system generated)
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10.
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Name and address of the Transferee or Assignee
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Name
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Address
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Email
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PAN number and TAN number (if applicable)
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Aadhar number/Registration Number (in case of company
or LLP)
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Passport number/ GST number (in case of company or LLP)
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Mobile number
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11.
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Letter number and date of transfer order issued by the administering
authority
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Place:
Date:
Signature
Name in full:
Designation:
Owner/Geologist/Mining Engineer
Form VII
[See
rule 33(1)]
FORMAT
OF MEMORANDUM OF APPEAL
To
[Address]
I/We submit the following
appeal with the following particulars.
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S. No.
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Item Detail
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Particulars
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(1)
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(2)
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(3)
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1.
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Name of appellant (In case of a firm or other
association of individuals, provide names of each person constituting the
firm or the association of individuals, as the case may be.)
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2.
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Address of the appellant (in case of a firm or other
association of individuals, provide addresses of each person constituting the
firm or the association of individuals, as the case may be.)
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3.
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Status of the appellant
• Individual
• Firm
• Other association of individuals
• Company
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4.
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Whether the appeal is filed within the prescribed time
period
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Yes/No
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5.
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If not, the reasons for not presenting it within the
prescribed limit and seeking condonation of delay.
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6.
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Purpose of the appeal
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7.
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Appellant to specify-
(a) number and date of communication of the order to
the appellant and authority passing the order against which an appeal is
preferred.
(b) whether in relation to composite licence or
production lease;
(c) any other matter
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8.
|
Fee payable for the appeal
|
|
|
9.
|
Name of bank, demand draft or challan number with date,
through which the fee has been paid.
|
|
|
10.
|
Mineral or minerals for which the appeal is filed
|
|
|
11.
|
Details of area with respect to which the appeal is
filed (give latitude and longitude covering the area).
|
|
|
12.
|
Name and complete address of the party/parties
impleaded
|
|
|
13.
|
Number of copies of memorandum of appeal attached
(Memorandum of appeal is to be submitted in triplicate if no party is
impleaded. Besides these, for each party impleaded one additional copy is to
be enclosed)
|
|
|
14.
|
Grounds of appeal
|
|
|
15.
|
Prayer(s) sought
|
|
I/We do hereby declare that
the particulars furnished above are correct and am/are ready to furnish any
other details, as may be required by you.
Yours faithfully
Place:
Date:
Signature of the appellant
Instructions to appellants:
(a)
The appeal must be signed by a duly
authorised representative of the appellant, in case the appellant is a company.
In case the appellant is an individual, the appellant must personally sign the
appeal. In case of a firm or association of individuals, all the persons
constituting the firm or association of individuals shall sign the appeal.
(b)
The corporate authorisation of the authorised
signatory of the appellant (which is a company) must be enclosed with the
appeal. Any change in such corporate authorisation must be immediately
intimated to the administering authority.
Form VIII
[See
rule 38]
PART
A
Register
of Composite Licences
(1)
Serial number.
(2)
Name of the licensee.
(3)
Address of registered office and residence of
the licensee.
(4)
Number and date of notice inviting tender for
auction of the composite licence and date of the notification of reservation
under section 8 of the Act.
(5)
(a) Number and date of grant of the composite
licence.
(b) Date of execution of
exploration licence deed of the composite licence.
(c) Date of registration of
exploration licence deed of the composite licence.
(6)
Geo co-ordinates of the offshore area.
(7)
Total offshore area for which composite
licence has been granted.
(8)
Auction premium (in percentage).
(9)
The mineral or minerals for which composite
licence has been originally granted:
(10)
Mineral or minerals added to the composite
licence with date.
(11)
The details of the offshore area for which
composite licence was originally granted.
(12)
Period for which composite licence is
granted.
(13)
Date of change together with details of
change that take place in name, nationality, registered office, majority owners
or other particulars of the licensee.
(14)
Date of transfer of the composite licence, if
any and the name and address of the transferee. (make separate entry for each
transfer).
(15)
Royalty and any other payments, if payable.
(16)
Details of performance security.
(17)
Date of application for production lease (if
any).
(18)
Date of expiry or termination of composite
licence or abandonment of operations or surrender of any excess area or grant
of production lease.
(19)
Date from which the area is available for
regrant.
(20)
Any other information as may be required by
administering authority.
(21)
Remarks.
(22)
Signature of the officer.
PART B
Register
of Production Lease
(1)
Serial number.
(2)
Name of the lessee.
(3)
Address of registered office and residence of
the lessee.
(4)
Number and date of notice inviting tender for
auction of the production lease and date of the notification of reservation
under section 8 of the Act.
(5)
(a) Number and date of grant of production
lease.
(b) Date of execution of
production lease deed.
(c) Date of registration of
production lease deed.
(6)
Geo co-ordinates of the offshore area.
(7)
Total offshore area for which production
lease has been granted.
(8)
Auction premium (in percentage).
(9)
The mineral or minerals for which production
lease has been originally granted.
(10)
Mineral or minerals added to the production
lease with date.
(11)
The details of the offshore area for which
production lease was originally granted.
(12)
Period for which the production lease is
granted.
(13)
Date of change together with details of
change that take place in name, nationality, registered office, majority owners
or other particulars of the lessee.
(14)
Date of transfer of the production lease, if
any and the name and address of the transferee. (make separate entry for each
transfer).
(15)
Royalty and any other payments, if payable.
(16)
Details of performance security.
(17)
Date of expiry or termination or abandonment
or surrender.
(18)
Date from which the offshore area is
available for regrant.
(19)
Any other information as may be required by
administering authority.
(20)
Remarks.
(21)
Signature of the officer.
SCHEDULE
[See
rule 7(2)(a)(i) and (ii)]
MAXIMUM
QUANTITIES OF ORES AND MINERALS REMOVABLE FROM LICENCE AREA
|
Class
|
Mineral
|
Quantities that can be carried away without
any payment
|
Maximum quantity that can be carried away
by payment of royalty
|
|
(1)
|
(2)
|
(3)
|
(4)
|
|
Class - I
|
Silica sand, Calcareous sands, Lime mud
|
5 tonnes
|
200 tonnes
|
|
Class - II
|
Phosphatic sediment, Polymetallic nodules, manganese
nodules, cobalt rich encrustation, phosphatic nodules minerals of rare earths
group.
|
5 tonnes
|
200 tonnes
|
|
Class - III
|
All other minerals not specified above
|
3 tonnes
|
200 tonnes
|
To
be deleted if the Licensee is not an association of individuals.
To
be deleted if the Lessee is not an association of individuals.