Chapter VI.

Provisions in relation to compensation payable under section 5.

33. —(1) In this Chapter—

“appointed area”, in relation to a petroleum well, means the land contained in a circle surrounding that petroleum well and having a radius of a quarter of a mile and a centre fixed in the prescribed manner;

“compensation” means compensation payable under section 5 of this Act;

“compensation area”, in relation to a petroleum well, means so much of the appointed area in relation to that petroleum well as consists of land directly under which there are situate minerals, an estate in which was immediately before the operative date vested in any person other than a Minister of State;

“petroleum” means petroleum the property in which is vested in the Minister by section 5 of this Act.

(2) For the purposes of this Chapter, the lessee under a lease granted under section 11 of the Mines and Minerals Act, 1931 , or under a lease granted, before the operative date, under section 36 of the Minerals Development Act, 1940 , shall be deemed not to have been entitled immediately before the operative date, to an estate in the minerals to which the lease relates.

34. —Compensation shall not be payable for petroleum unless and until it is brought to the surface and used or sold.

35. —Where petroleum is brought to the surface at a petroleum well and used or sold by the lessee under a petroleum lease or by the Minister exercising the powers conferred on him by section 14 of this Act, a right to compensation in respect of such petroleum shall be deemed to have become vested on the operative date in the persons (other than a Minister of State) who, immediately before the operative date, were entitled to any estate in any minerals (excluding an estate in minerals which did not include petroleum) directly under the appointed area in relation to that petroleum well.

36. —(1) Compensation for petroleum shall be in the form of a royalty rent.

(2) The total amount of compensation for petroleum brought to the surface at a petroleum well within the area specified in a petroleum lease and used or sold shall be such proportion of one-third of the royalty rent reserved by the said lease in relation to such petroleum well, as the compensation area in relation to such petroleum well bears to the area contained in a circle of a quarter-mile radius.

(3) The total amount of compensation for petroleum brought to the surface at a petroleum well within an area specified under subsection (2) of section 14 of this Act and used or sold, shall be such proportion of one-third of the royalty rent which would have been payable in relation to such petroleum well if the petroleum in the area so specified had been the subject of a petroleum lease reserving a royalty rent of seven and a half per cent. of the prescribed value of the petroleum (excluding petroleum used by the Minister in searching for or working petroleum in the area), as the compensation area in relation to such petroleum well bears to the area contained in a circle of a quarter-mile radius.

37. —Where petroleum is for the first time brought to the surface at a petroleum well and used or sold by the lessee under a petroleum lease or by the Minister exercising the powers conferred on him by section 14 of this Act the following provisions shall have effect—

(a) the Minister shall publish notice of that fact in one or more newspapers circulating in the locality of the appointed area in relation to such petroleum well; and deposit in the office of the Geological Survey, Dublin and in such other places as the Minister thinks proper, a map showing the boundaries of the said appointed area;

(b) the notice shall indicate that any person who, having regard to the provisions of section 35 of this Act, claims to be entitled to compensation for such petroleum may submit his claim for such compensation to the Minister;

(c) no claim for compensation for the petroleum shall be entertained unless it is made not later than twelve months after the date on which such notices were published or, if published on different dates, the date of the last publication;

(d) as soon as may be after the expiration of the period specified in paragraph (c) of this subsection, the Minister shall refer every claim for such compensation to the Board.

38. —(1) Where claims for compensation are referred to the Board under section 37 of this Act, the Board shall adjudicate upon the said claims and embody their findings in an award which shall—

(a) specify the amount of the royalty rent which, having regard to section 36 of this Act, is to constitute the total compensation,

(b) specify the name of each claimant found by them to be entitled to the compensation,

(c) if the Board find that two or more claimants are entitled to payment of the royalty rent, apportion the royalty rent between the claimants so entitled.

(2) Every award made by the Board under subsection (1) of this section—

(a) shall be signed by all members of the Board,

(b) shall be conclusive evidence of all matters purported to be certified therein.

(3) (a) In apportioning, under paragraph (c) of subsection (1) of this section, a royalty rent payable as compensation for petroleum brought to the surface at a particular petroleum well, the Board may, as between the persons entitled to compensation, have regard to the relative extent of the area of entitlement (within the compensation area in relation to such petroleum well) of each of them.

(b) For the purposes of paragraph (a) of this subsection, the area of entitlement of a person shall be taken to be the area directly over the minerals in which he or the person through whom he claims had, immediately before the operative date, an estate.

39. —On the adjudication by the Board of claims for compensation referred to the Board under section 37 of this Act, the following persons shall be entitled, by counsel or solicitor or in person, to appear, be heard and adduce evidence—

(a) the Minister,

(b) every claimant.