{"id":146208,"date":"2024-12-09T19:12:58","date_gmt":"2024-12-09T13:42:58","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=146208"},"modified":"2024-12-09T19:12:58","modified_gmt":"2024-12-09T13:42:58","slug":"oilfields-amendment-bill","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/oilfields-amendment-bill","title":{"rendered":"Oilfields Amendment Bill, 2024"},"content":{"rendered":"<p><b>Rajya Sabha <\/b><span style=\"font-weight: 400;\">recently passed the <\/span><b>Oilfields (Regulation and Development) Amendment Bill, 2024, <\/b><span style=\"font-weight: 400;\">aiming to encourage domestic petroleum production and attract private investment to reduce India&#8217;s import dependency.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Bill amends the<\/span><b> 1948 Oilfields Act <\/b><span style=\"font-weight: 400;\">to delineate its scope from the Mines and Minerals (Development and Regulation) Act, 1957, focusing exclusively on petroleum and mineral oils.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>About the Oilfields (Regulation and Development) Amendment Bill, 2024<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Definition of Mineral Oil<\/b><span style=\"font-weight: 400;\">: Mineral oil is defined as \u201cany naturally occurring hydrocarbon,\u201d including crude oil, petroleum, and natural gas in various forms.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Excludes coal, lignite, and helium <\/b><span style=\"font-weight: 400;\">associated with petroleum or coal, which<\/span><b> remain governed by the Mines and Minerals Act, 1957.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Introduction of Petroleum Leases: <\/b><span style=\"font-weight: 400;\">Replaces<\/span><b> &#8220;mining leases&#8221;<\/b><span style=\"font-weight: 400;\"> with<\/span><b> &#8220;petroleum leases,&#8221;<\/b><span style=\"font-weight: 400;\"> which cover activities such as exploration, production, and transportation of mineral oils.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Empowers the Centre to regulate<\/b><span style=\"font-weight: 400;\"> and grant petroleum leases.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Private Investment Promotion:<\/b><span style=\"font-weight: 400;\"> Encourages private sector participation to boost domestic production of petroleum.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Ensures no alteration of existing leases<\/b><span style=\"font-weight: 400;\"> to the lessee&#8217;s disadvantage.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Adjudication of penalties:<\/b><span style=\"font-weight: 400;\"> The central government will appoint an officer of the rank of Joint Secretary or above for adjudication of penalties.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7992%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b>About the Petroleum and Natural Gas Regulatory Board (PNGRB)<\/b><\/span><\/h3>\n<ul>\n<li><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The PNGRB was established under the <\/span><b>Petroleum and Natural Gas Regulatory Board Act, 2006.<\/b><\/span><\/li>\n<li><span style=\"color: #000000;\"><b>Nodal Ministry:<\/b><span style=\"font-weight: 400;\"> It functions under the Ministry of Petroleum and Natural Gas, which oversees its operations and policy alignment.<\/span><\/span><\/li>\n<li><span style=\"font-weight: 400; color: #000000;\">One of the primary tasks of the PNGRB is to foster competitive markets for natural gas, ensuring transparency and fair trade practices.<\/span><\/li>\n<li><span style=\"color: #000000;\"><b>Key Functions of PNGRB:<\/b><\/span><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">The PNGRB regulates various aspects of the petroleum and natural gas sector, including:<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">Refining of petroleum products.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">Transportation of petroleum and natural gas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">Distribution and storage of these resources.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">Marketing, supply, and sale of petroleum products and natural gas.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400; color: #000000;\">Ensuring Competitive Markets<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Appeals Against Decisions: <\/b><span style=\"font-weight: 400;\">Decisions made by the PNGRB can be challenged before the<\/span><b> Appellate Tribunal for Electricity.<\/b><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">This provides a legal avenue for addressing grievances and disputes.<\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<ul>\n<li><b>Adjudication of penalties: <\/b><span style=\"font-weight: 400;\">Appeals against the decisions of the Adjudicating Authority will lie before the Appellate Tribunal specified in the<\/span><b> Petroleum and Natural Gas Board Regulatory Board Act, 2006.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Penalties Instead of Criminal Punishment: <\/b><span style=\"font-weight: 400;\">Replaces imprisonment penalties with monetary fines.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Violators could face fines of up to \u20b925 lakh and an additional \u20b910 lakh per day for continued violations.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Environmental Considerations: <\/b><span style=\"font-weight: 400;\">Empowers the Centre to establish rules for reducing carbon and greenhouse gas emissions and promoting renewable energy projects at oilfields.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Rule-Making Powers of the Central Government<\/b><\/span><\/h2>\n<p><b>The Ac<\/b><span style=\"font-weight: 400;\">t authorizes the central government to make rules on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Grant of Leases<\/b><span style=\"font-weight: 400;\">: Regulating the process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lease Terms<\/b><span style=\"font-weight: 400;\">: Minimum\/maximum area, period, and conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mineral Oil Development<\/b><span style=\"font-weight: 400;\">: Conservation and development methods.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Oil Production<\/b><span style=\"font-weight: 400;\">: Defining production methods.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Revenue Collection<\/b><span style=\"font-weight: 400;\">: Manner of collecting royalties, fees, and taxes.<\/span><\/li>\n<\/ul>\n<p><b>The Bill adds provisions for rules on:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Petroleum Lease Mergers<\/b><span style=\"font-weight: 400;\">: Managing mergers and combinations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Shared Facilities<\/b><span style=\"font-weight: 400;\">: Sharing production and processing infrastructure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Environmental Obligations<\/b><span style=\"font-weight: 400;\">: Protecting the environment and reducing emissions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Dispute Resolution<\/b><span style=\"font-weight: 400;\">: Alternative mechanisms for lease-related disputes.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+CSE+Books\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC CSE Books From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Concerns Raised Against the Bill<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>State Rights:<\/b><span style=\"font-weight: 400;\"> Opposition members argue the Bill undermines states&#8217; authority to tax mining activities under<\/span><b> Entry 50 of the State List (Schedule 7).<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Critics suggest the shift from<\/span><b> &#8220;mining leases&#8221;<\/b><span style=\"font-weight: 400;\"> to <\/span><b>&#8220;petroleum leases&#8221; <\/b><span style=\"font-weight: 400;\">could bring regulation under<\/span><b> Entry 53 of the Union List,<\/b><span style=\"font-weight: 400;\"> centralizing control with the Union government.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Environmental Implications:<\/b><span style=\"font-weight: 400;\"> Concerns over allowing private players greater operational discretion, which might lead to environmental degradation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Emphasis on public companies like ONGC was recommended to ensure environmentally responsible exploration.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accountability and Oversight: <\/b><span style=\"font-weight: 400;\">Replacing criminal penalties with fines could dilute enforcement and accountability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Need for Review<\/b><span style=\"font-weight: 400;\">: Calls for referring the Bill to a select committee to address ambiguities and safeguard state interests.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Way Forward<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Balancing State and Union Roles:<\/b><span style=\"font-weight: 400;\"> Ensure clarity in jurisdiction between states and the Union to uphold states\u2019 fiscal rights while enabling efficient governance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Environmental Safeguards:<\/b><span style=\"font-weight: 400;\"> Mandate stricter environmental regulations and ensure compliance by both private and public operators.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Transparent Private Participation<\/b><span style=\"font-weight: 400;\">: Frame clear operational guidelines for private companies to maintain accountability and prevent misuse of resources.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stakeholder Engagement<\/b><span style=\"font-weight: 400;\">: Engage stakeholders, including states, environmental experts, and industry players, to create a balanced framework for resource management.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Review Mechanism:<\/b><span style=\"font-weight: 400;\"> Introduce periodic reviews of the policy\u2019s implementation to address emerging concerns and ensure effective regulation.<\/span><\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; 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