Chapter III.

Exploration and development of petroleum

6. —(1) No person, other than the Minister, shall search for petroleum in any area in the State unless—

(a) he is the licensee under an exploration licence, a petroleum prospecting licence or a reserved area licence which is for the time being in force and includes that area, or

(b) he is the lessee under a petroleum lease which has not expired and which includes that area.

(2) No person, other than the Minister, shall get, raise, take or carry away petroleum found in any area in the State unless he is the lessee under a petroleum lease which has not expired and which includes that area.

(3) Every person who contravenes subsection (1) or (2) of this section shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds, together with, in the case of a continuing offence, a further fine not exceeding one hundred pounds for every day on which the offence is continued, or in the discretion of the Court, to imprisonment for a term not exceeding six months or to both such fine and such imprisonment.

(4) In a prosecution for an offence under this section, a certificate purporting to be signed by an officer of the Minister and to certify any one or more of the following matters—

(a) that the person charged was not on a specified day the holder of an exploration licence which was then in force and included a specified area,

(b) that the person charged was not on a specified day the holder of a petroleum prospecting licence which was then in force and included a specified area,

(c) that the person charged was not on a specified day the holder of a reserved area licence which was then in force and included a specified area,

(d) that the person charged was not on a specified day the lessee under a petroleum lease which had not then expired and included a specified area,

shall, without proof of the signature of the person purporting to sign such certificate or that he was an officer of the Minister, be evidence until the contrary is proved of such of those matters as are purported to be certified in and by such certificate.

7. —(1) The Minister may enter into an undertaking with any person to grant to him an exploration licence or a petroleum prospecting licence or both those licences.

(2) Where the Minister enters into an undertaking under this section it shall be lawful for him to carry out the undertaking.

8. —(1) The Minister may grant to any person such licence (in this Part referred to as an exploration licence) as is authorised by this section.

(2) Every exploration licence shall be granted upon such terms and conditions and in respect of such areas as the Minister thinks fit and specifies therein.

(3) On the granting of the exploration licence the licensee shall pay to the Minister such consideration therefor as the Minister, with the concurrence of the Minister for Finance, may determine.

(4) Every exploration licence shall be expressed and operate to vest in the licensee the exclusive right of searching for petroleum in the area to which the licence extends.

(5) (a) An exploration licence shall not confer on the licensee any right to enter on land.

(b) Paragraph (a) of this subsection shall not be construed as preventing the licensee under an exploration licence from entering on land with the consent of the owner of the surface of that land.

(6) Every exploration licence shall contain an indemnity clause whereby the licensee indemnifies the Minister against any claim arising out of the exercise by the licensee of his rights under the licence.

(7) In this section “searching for petroleum” means the doing by the licensee under an exploration licence of all such things as are in his opinion necessary or desirable for the purpose of ascertaining the character, extent or value of the petroleum in the area to which the licence extends and, in particular and without prejudice to the generality of the foregoing power, includes exploring for petroleum by using geological, geophysical, geochemical and topographic examination, making borings, sinking pits, removing water from old workings and taking and removing reasonable quantities of petroleum and other minerals for analysis, test, trial or experiment.

9. —(1) The Minister may, subject to subsection (2) of this section, grant to any person a licence (in this Part referred to as a petroleum prospecting licence) in respect of petroleum under any land.

(2) The Minister shall not grant a petroleum prospecting licence in respect of petroleum under any land unless, at least twenty-one days before doing so, he has—

(a) published, in one or more newspapers circulating in the locality, notice of his intention to do so, and

(b) deposited in the office of the Geological Survey, Dublin and in one or more places in the locality, a map showing the boundaries of such land.

(3) Every petroleum prospecting licence shall be granted upon such terms and conditions as the Minister thinks fit and specifies therein.

(4) On the granting of a petroleum prospecting licence, the licensee shall pay to the Minister such consideration therefor as the Minister, with the consent of the Minister for Finance, may determine.

(5) Every petroleum prospecting licence shall be expressed and operate to authorise the licensee, during the currency of such period as is specified in the licence, to enter on the land specified in the licence and there do all such things as the licensee considers necessary or desirable for the purpose of ascertaining the character, extent or value of the petroleum under such land and, in particular and without prejudice to the generality of the foregoing power, for the purpose aforesaid, to make geological, geophysical, geochemical and topographic examinations and to make borings, sink pits, remove water from old workings and take and remove reasonable quantities of petroleum and other minerals for the purpose of analysis, test, trial or experiment.

(6) Every petroleum prospecting licence shall contain an indemnity clause whereby the licensee indemnifies the Minister against any claim or demand whatsoever in respect of the land the subject of the licence or in any way arising out of the exercise by the licensee of the rights conferred on him by the licence.

(7) Every petroleum prospecting licence shall contain a clause requiring the licensee to exercise the rights conferred on him by the licence in such manner as not to interfere unnecessarily with the amenities of the area to which the licence relates.

(8) (a) A petroleum prospecting licence shall not confer on the licensee a right to sell or otherwise dispose of any petroleum found under the land specified in the licence.

(b) Nothing in paragraph (a) of this subsection shall be construed as preventing the licensee under a petroleum prospecting licence from taking and removing reasonable quantities of petroleum for the purposes of analysis, test, trial or experiment.

10. —(1) The Minister may enter into an undertaking to grant a petroleum lease to take effect from such date, as may be specified in the petroleum lease.

(2) Every such undertaking as is mentioned in subsection (1) of this section shall be in such form as the Minister, with the consent of the Minister for Finance, shall determine and may specify the terms and conditions (if any) upon which the petroleum lease which is the subject of the undertaking shall be granted.

(3) Whenever the Minister enters into an undertaking to grant a petroleum lease under this section, it shall be lawful for the Minister to carry out the undertaking in accordance with the terms thereof.

11. —(1) Where there is not in relation to any area an existing exploration licence, a petroleum prospecting licence, a reserved area licence or a petroleum lease—

(a) the Minister may exercise in relation to that area all the powers which could be exercised by him if he were in fact the holder of an exploration licence in relation to that area,

(b) the Minister, with the consent of the Minister for Finance, may, subject to subsection (2) of this section, exercise, in relation to that area, all the powers which could be exercised by him if he were in fact the holder of a petroleum prospecting licence in relation to that area.

(2) The Minister shall not exercise the powers conferred on him by paragraph (b) of subsection (1) of this section in relation to any area unless, at least twenty-one days before doing so, he has—

(a) published, in one or more newspapers circulating in the locality, notice of his intention to do so, and

(b) deposited in the office of the Geological Survey, Dublin and in one or more places in the locality, a map showing the boundaries of that area.

12. —Whenever damage to the surface of land or to mineral deposits or to water supplies or a nuisance is caused whether directly or indirectly, either—

(a) by the exercise by the licensee under a petroleum prospecting licence of his rights under the licence, or

(b) by exercise by the Minister of the powers conferred on him by paragraph (b) of subsection (1) of section 11 of this Act,

the licensee or the Minister (as the case may be) shall be liable to pay compensation for such damage or nuisance, and the provisions of Chapter VII of this Part shall apply in respect of such compensation.

13. —(1) If, in the opinion of the Minister, it is in the public interest that petroleum under specified land should be granted by way of lease to any person, the Minister may demise such petroleum to that person by way of lease (in this Part referred to as a petroleum lease) for such term as the Minister thinks proper.

(2) The following provisions shall apply in relation to every petroleum lease—

(a) such lease shall be made subject to the payment to the Minister of such moneys, whether by way of fine or preliminary payment or by way of rent (including a royalty rent) or by any or all of such ways as the Minister, with the concurrence of the Minister for Finance, shall think proper and shall agree upon with the lessee;

(b) such lease shall contain such (if any) covenants, conditions and subsidiary agreements on the part of the Minister or of the lessee as the Minister shall consider proper or desirable in the public interest and shall agree upon with the lessee;

(c) such lease may contain a clause providing for the renewal or successive renewals thereof, either unconditionally or subject to such conditions as shall be stated in such lease;

(d) the Minister for Finance shall be a party to such lease.

14. —(1) It shall be lawful for the Minister, with the consent of the Minister for Finance, at any time, subject to the terms of any licence or lease granted under this Part, to work petroleum in any area or areas and to sell or otherwise dispose of petroleum obtained by such working.

(2) Before commencing to work petroleum in exercise of the powers conferred on him by subsection (1) of this section, the Minister shall—

(a) specify the area or areas (each of which shall not be less than two square miles or more than five square miles in extent) within which he proposes to exercise those powers,

(b) publish in the Iris Oifigiúil a notice stating the locality and extent of such area or areas.

(3) The Minister may authorise any person in writing to exercise for and on behalf of the Minister the powers conferred on the Minister by this section and any act done by such person in pursuance of such authority shall for the purposes of this Part be deemed the act of the Minister.

(4) Where the Minister sells or disposes of petroleum under this section, the proceeds of such sale or disposal shall be paid into the Exchequer in such manner as the Minister for Finance shall direct.

15. —(1) The lessee under a petroleum lease may enter on the land specified in the lease and use such land in such manner as may be reasonably necessary for the working of petroleum or for any purpose incidental thereto.

(2) The Minister exercising the powers conferred on him by section 14 of this Act may enter on any land within the area in respect of which those powers are exercisable and use such land in such manner as may be reasonably necessary for the working of petroleum or for any purpose incidental thereto.

16. —Where damage to the surface of land or to mineral deposits or to water supplies or a nuisance is caused directly or indirectly, either—

(a) by working or doing anything incidental to the working of petroleum, or

(b) by exercising the right of entry on and user of land conferred by section 15 of this Act,

the person causing such damage or nuisance, whether he is the lessee under a petroleum lease or the Minister, shall be liable to pay compensation for such damage or nuisance, and the provisions of Chapter VII of this Part shall apply in respect of such compensation.

17. —(1) Every lessee under a petroleum lease shall—

(a) as soon as may be after petroleum is brought to the surface for the first time at any borehole—notify the Minister of that fact;

(b) furnish to the Minister, within twenty-eight days after being required by the Minister so to do, such information as the Minister may at any time require in relation to the petroleum demised by such lease or to the working of such petroleum.

(2) The Minister may make regulations in relation to the furnishing by lessees of petroleum leases of information in regard to the petroleum or the working of the petroleum demised by such leases, and such regulations may require the furnishing of such information in addition and without prejudice to the information required to be furnished under subsection (1) of this section.

(3) If any person who is required by this section or by any regulation made thereunder to furnish any information to the Minister,—

(a) fails or refuses to furnish such information, or

(b) knowingly furnishes any such information which is false or misleading in a material particular, or

(c) otherwise makes default in complying with the provisions of this section or of any regulation made thereunder,

such person shall be guilty of an offence under this section, and shall be liable on summary conviction thereof to a fine not exceeding ten pounds and, in the case of a continuing offence, a further fine not exceeding ten pounds for every day during which such offence is continued.

18. —(1) (a) Where operations in connection with petroleum by any person, who is or was the licensee under a licence under this Part or the lessee under a petroleum lease, have been abandoned or discontinued and it appears to the Minister that any borehole shaft or outlet used in connection with those operations is in such a condition as to be likely to cause an accident, the Minister may serve by registered post on that person a notice requiring him, within a specified time, to cause the top or entrance of the borehole shaft or outlet to be covered or fenced so as to prevent accidents.

(b) Where notice is served under paragraph (a) of this subsection and the person on whom the notice is served (in this subsection referred to as the defaulter) does not comply with the notice, the following provisions shall have effect—

(i) the Minister may take such action as was required by the notice to be taken by the defaulter,

(ii) the Minister may, for the purpose of exercising the powers conferred by subparagraph (i) of this paragraph, enter on any land,

(iii) any expenses incurred by the Minister in exercise of the powers conferred by subparagraph (i) of this paragraph shall be recoverable by the Minister from the defaulter as a simple contract debt in any court of competent jurisdiction,

(iv) where damage to the surface of land or to mineral deposits or to water supplies is caused directly or indirectly by exercising the powers conferred by subparagraph (i) or (ii) of this paragraph—

(I) the Minister shall be liable to pay compensation for such damage, and the provisions of Chapter VII of this Part shall apply in respect of such compensation,

(II) where the Minister pays compensation under clause (I) of this subparagraph, then, unless the damage in respect of which the compensation is payable was caused by his negligence, the Minister shall be entitled to recover as a simple contract debt in any court of competent jurisdiction from the defaulter a sum equal to the amount of such compensation,

(v) where the Minister is entitled under subparagraph (iii) or (iv) of this paragraph to recover any sum from the defaulter, a certificate sealed with the official seal of the Minister and certifying the amount of that sum shall be prima facie evidence of the amount of that sum.

(2) The Minister may authorise any person in writing to exercise for and on behalf of the Minister the powers conferred by subsection (1) of this section on the Minister, and, whenever the Minister so authorises any person, such person (in this section referred to as an agent of the Minister) may in the name and for and on behalf of the Minister exercise such powers.

(3) If any person obstructs or interferes with an agent of the Minister in exercise of the powers conferred on such agent by virtue of the foregoing provisions of this section, such person shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding five pounds.

(4) Nothing in this section contained shall exempt any person from any liability under any other Act or otherwise.

19. —(1) At any time after the grant of a petroleum lease, the Minister may grant to the lessee, in respect of a specified area surrounding the land to which the lease relates, such licence (in this Part referred to as a reserved area licence) as is authorised by this section.

(2) Every reserved area licence shall be granted on such terms (including the reservation of a rent) and conditions as the Minister thinks proper and specifies in such licence.

(3) Every reserved area licence shall be expressed and operate to vest in the licensee the same rights in respect of the area specified therein as would be exercisable by him if he were in fact the holder of an exploration licence in respect of that area.

(4) The Minister shall not, save with the consent of the licensee under a reserved area licence, grant, while the licence is in force, to any other person an exploration licence, a petroleum prospecting licence or a petroleum lease in respect of the area to which the reserved area licence extends.

20. —The lessee under a petroleum lease may, with the consent of the Minister, assign the lessee's interest under that petroleum lease to another person.

21. —(1) In this section “licence” means a licence being—

(a) an exploration licence,

(b) a petroleum prospecting licence, or

(c) a reserved area licence.

(2) The licensee under a licence may, with the consent of the Minister, transfer the licence to another person.

(3) Where the licensee under a licence, being an individual, dies, the following provisions shall notwithstanding anything contained in section 6 of this Act, have effect—

(a) the rights conferred by the licence may be exercised until the happening of whichever of the following events first happens, namely—

(i) the grant of probate of the will or letters of administration of the personal estate of the licensee,

(ii) the expiration of the licence,

(iii) the expiration of six months from the death of the licensee;

(b) if the personal representative of the licensee applies to the Minister, not later than twelve months from the death of the licensee for leave to transfer the licence and the licence is then in force—

(i) the Minister may grant or refuse the application,

(ii) if the Minister refuses the application, the licence shall on such refusal terminate.

22. —(1) In this section “licence” means a licence being—

(a) an exploration licence,

(b) a petroleum prospecting licence, or

(c) a reserved area licence.

(2) The Minister may revoke a licence if he is satisfied that any of the conditions attached to it have been contravened.

(3) A licence shall terminate, if the licensee thereunder is an individual, on his bankruptcy or, if the licensee thereunder is a body corporate, on its dissolution.

(4) On the revocation or termination of a licence under this section—

(a) all rights and powers exercisable by the licensee shall cease and determine but without prejudice to any obligation or liability imposed on the licensee by this Part or by the licence;

(b) where the licensee paid any consideration for the grant of the licence, he shall not be entitled to be repaid such consideration or any part thereof.