Home India Ministry of Petroleum and Natural Gas In partial modification of Coal Bed Methane CBM Policy Notif...
Date: 2018-05-11 Category: Extra Ordinary State: Union Government Country: India

In partial modification of Coal Bed Methane CBM Policy Notification

Issued by Ministry of Petroleum and Natural Gas · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary:** This notification outlines the consolidated terms and conditions for granting Coal India Limited (CIL) and its subsidiaries exploration and exploitation rights for Coal Bed Methane (CBM) in their coal-bearing areas. It deems existing coal mining leases as sufficient for CBM extraction, removing the need for separate licenses under PNG Rules, 1959. The notification establishes royalty, fees, and tax obligations, and sets timelines for Field Development Plan (FDP) submission and production commencement, with penalties for delays. The notification is effective from May 8, 2018. **Key Points / Main Content:** * **Grant of Rights:** * CIL and its subsidiaries, holding mining leases for coal, are granted exploration and exploitation rights for CBM. * Existing coal mining leases are deemed sufficient; no separate license under PNG Rules, 1959, is required. * **Compliance and Regulations:** * CIL and its subsidiaries must comply with the Oilfields Regulation and Development (ORD) Act 1948 and PNG rules 1959 for CBM operations. * Existing Government of India policies for natural gas utilization and pricing apply. * **Financial Obligations:** * Lessees must pay royalty, fees, levies, and taxes at prevailing rates for natural gas. * A royalty of 10% ad valorem of sale value at the wellhead is payable to the State Government. * A one-time signature bonus of US$0.3 million (in Indian Rupees) is payable to the Central Government upon signing the CBM contract. * A Production Level Payment (PLP) of 2.5% of the sale value of CBM produced is payable to the Central Government. * Exemption from customs duty on imports is applicable as per notification no. 50/2017. * Income tax is payable as per the Income Tax Act, 1961. * **Planning and Timelines:** * Annual coal mining plans must include details of CBM operations, work program, and production targets. * Within 24 months of contract signing, a Field Development Plan (FDP) must be submitted to DGH, with intimation to the Ministry of Coal (MOC). * FDP requires approval from the lessee's board. * The Ministry of Petroleum and Natural Gas (MoPNG) may extend the FDP submission deadline by 12 months with sufficient justification. * Production must start no later than the projected date in the FDP. * **Penalties:** * Delay in submitting appraisal plan and FDP beyond 36 months incurs a penalty of Rs. One lakh per month. * Delay in production incurs a penalty of Rs. One lakh per month. * **Equity and Operations:** * Equity participation for CBM exploitation is limited to Central or State PSUs with CBM operations experience. * The lessee must hold the majority share. * Engagement of experienced technical developers or service contractors is permitted. * Relinquishment of CBM mining lease is coterminous with coal lease. * CBM areas covered under coal mining lease should be utilized to facilitate CBM extraction prior to or simultaneously with coal mining operations. * **Statutory Compliance:** * Lessees must comply with all statutory requirements related to Environment and Safety. **Impact Analysis** **Coal India Limited (CIL) and its Subsidiaries:** * *Impact:* Granted rights for CBM exploration and exploitation in existing coal-bearing areas, subject to specific terms and conditions. Responsible for compliance, payments, planning, and operational execution. * *Action Required:* Comply with ORD Act 1948 and PNG rules 1959. Pay royalties, fees, and taxes as specified. Submit Field Development Plan (FDP) within specified timelines. Include CBM operation details in annual coal mining plans. Sign contract with the Ministry of Petroleum and Natural Gas. Ensure compliance with environment and safety regulations. **Central Government (Ministry of Petroleum and Natural Gas, DGH):** * *Impact:* Responsible for overseeing and regulating CBM operations by CIL and its subsidiaries. Receives payments, monitors compliance, and has authority to grant extensions and levy penalties. * *Action Required:* Ensure CIL and its subsidiaries comply with the terms and conditions. Monitor FDP submissions and production timelines. Collect royalties, fees, and taxes. Evaluate requests for FDP submission extensions. **State Government:** * *Impact:* Receives royalty payments from CBM production within their jurisdiction. * *Action Required:* Receive and manage royalty payments.

Key Entities Referenced

Ministry of Petroleum and Natural Gas: A ministry of the Government of India responsible for the exploration, production, refining, distribution, marketing, and import/export of petroleum, natural gas, and petrochemicals. Coal Bed Methane CBM Policy: A policy related to the exploration and exploitation of Coal Bed Methane (CBM) resources. Oilfields Regulation and Development Act, 1948: An act of the Government of India that regulates the oilfields and their development. Coal India Limited CIL: An Indian government-owned coal mining and refining company. Coal Bearing Areas Acquisition Development Act, 1957: An act related to the acquisition and development of coal-bearing areas. PNG Rules 1959: Rules pertaining to petroleum and natural gas. Income Tax Act, 1961: An act related to income tax regulations in India. New Delhi, Delhi: The location where the notification was issued, the capital of India.
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L.-33004/99 vlk/kj.k EXTRAORDINARY Hkkx I—[k.M 1 PART I—Section 1 izkf/dkj ls izdkf'kr PUBLISHED BY AUTHORITY la- 172] ubZ fnYyh] 'kqØokj] ebZ 11] 2018@ oS'kk[k 21] 1940 No. 172] NEW DELHI, FRIDAY, MAY 11, 2018/VAISAKHA 21, 1940 पपपप(cid:3)(cid:3)ेे(cid:3)(cid:3)ेे ोोोोििििललललययययमममम औऔऔऔरररर (cid:12)(cid:12)(cid:12)(cid:12)ााााककककृृृृििििततततकककक गगगगससैैससैै ममममं(cid:21)ं(cid:21)ं(cid:21)ं(cid:21)ााााललललयययय अअअअििििधधधधससससचचूूचचूू ननननाााा नई (cid:4)द(cid:6)ल ी, 8 मई, 2018 फफफफाााा.... सससस....ंंंं 11119999000011118888////11112222////2222000011115555----ओओओओएएएएननननजजजजीीीी----I....————(cid:4)दनांक 19.07.1997 क(cid:12) कोल बडे िमथने (सीबीएम) नीित अिधसूचना सं(cid:29)य ा ओ-12011/1/97/ओएनजी.डीओ.IV म(cid:31) आंिशक संशोधन करते #ए और (cid:4)दनांक 03 नवबं र, 2015 क(cid:12) अिधसूचना सं(cid:29) या 19018/12/2015-ओएनीजी-I के अिध(मण म(cid:31) भारत सरकार तेल +े, (िविनयमन और िवकास) अिधिनयम, 1948 (1948 का 53) क(cid:12) धारा (12) के तहत .द/त शि0य1 का उपयोग करत े #ए कोल इंिडया िल. (सीआईएल) और उसक(cid:12) सहायक कंपिनय1 को कोयला धा7रत +े,1, िजनके िलए उनके पास कोयला हते ु खनन प:ा ह,ै म(cid:31) अ< वेषण और दोहन के अिधकार .दान करने के िलए समे(cid:4)कत िनबंधन और शत> को िन?न ानुसार एतद@ारा अिधसूिचत करती ह ै:- i. कोयला धा7रत +े, (अिधBहण और िवकास) अिधिनयम, 1957 अथवा कोयला खान (राC Dीयकरण) अिधिनयम अथवा कोEकग कोयला खान (राCD ीयकरण) अिधिनयम, 1972 अथवा यथा िविनFदCट (cid:4)कसी अ< य अिधिनयम के तहत सीआईएल और उसक(cid:12) सहायक कंपिनय1 के पास कोयले के उ/ खनन हते ु िनिहत अिधकार/खनन प:े को पीएनजी िनयम 1959 के तहत सीबीएम के अ<व ेषण और दोहन के िलए .दान (cid:4)कया गया खनन प:ा माना जाएगा। सीआईएल और उसक(cid:12) सहायक कं पिनय1 को ऐसे +े,1 के िलए सीबीएम के उ/खनन हते ु पीएनजी िनयम 1959 के तहत अलग स े लाइस(cid:31)स/प:ा .दान करने के िलए आवेदन करन े क(cid:12) जOरत नहP ह।ै ii. प:ाधारक के Oप म(cid:31) सीआईएल और उसके सहायक कं पिनयां ऐसे सभी Qल ॉक1/+,े 1 म(cid:31) सीबीएम .चालन1 के िलए ओआरडी अिधिनयम 1948 और पीएंडएनजी िनयम 1959 का अनुपलान कर(cid:31)गी। 2610 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] iii. प:ाधारक .ाकृितक गैस के उपयोग और मू(cid:6)य िनधारW ण के िलए भारत सरकार क(cid:12) मौजूदा नीित का अनुपालन कर(cid:31)गे। iv. प:ाधारक1 @ारा राY य/क(cid:31)Z सरकार को समय-समय पर यथालाग ू रॉय(cid:6)टी तथा अपेि+त शु(cid:6)क 1, उगािहय1 और कर1 का भुगतान .ाकृितक गैस के िलए (cid:4)कए जाने वाले अपेि+त भुगतान1 के समान .चिलत दर1 और समय-समय पर यथासशं ोिधत दर1 पर (cid:4)कया जाना अपेि+त होगा। v. सीआईएल और उसक(cid:12) सहायक कं पिनय1 @ारा संबंिधत राYय सरकार को कूप शीषW पर 10 .ितशत यथा िब((cid:12) मू(cid:6) य क(cid:12) दर से रॉय(cid:6) टी का भगु तान तथा क(cid:31)Z सरकार को सीबीएम संिवदा ह[त ा+र (cid:4)कए जाने क(cid:12) तारीख को भारतीय \पए म(cid:31) 0.3 िमिलयन अमरीक(cid:12) डॉलर के िनधाW7रत एकबारगी िस]न चे र बोनस का भुगतान तथा सीबीएम उ/प ादन पर उ/प ा(cid:4)दत सीबीएम के िब((cid:12) मू(cid:6)य के 2.5 .ितशत क(cid:12) दर स े उ/ पादन [ तर भगु तान (पीएलपी) (cid:4)कया जाना अपेि+त होगा। vi. (cid:4)दनांक 30 जून, 2017 क(cid:12) अिधसूचना सं(cid:29)या 50/2017-क[ट ?स के (म सं(cid:29)य ा 404, उसम(cid:31) िनिहत अ< य सबं ंिधत .ावधान1 तथा इस सबं ंध म(cid:31) सरकार @ारा समय समय पर जारी अ<य अिधसूचना^ के तहत आयात1 पर सीमा शु(cid:6) क के भुगतान से छूट लाग ू होगी। vii. आयकर अिधिनयम, 1961 के अनुसार आय कर दये होगा। viii. वा_षक कोयला खनन योजना म(cid:31) वषW के दौरान सीबीएम .चालन के िलए खनन प:ा हते ु मािनत +े, के Q यौरे, .ितब‘ कायW काय(W म तथा सीबीएम के उ/प ादन के िलए लaय शािमल होगा,और कोयला मं,ालय (एमओसी) तथा प:ाधारक के बीच (cid:4)कए गए समझौता cापन म(cid:31) इसे शािमल (cid:4)कया जाएगा। ix. सीआईएल और उसक(cid:12) सहायक कंपिनयां सीबीएम के िलए +े, क(cid:12) पहचान कर(cid:31)गी और पेDोिलयम और .ाकृितक गैस म,ं ालय के साथ संिवदा पर ह[त ा+र कर(cid:31)गी। संिवदा पर ह[त ा+र (cid:4)कए जाने के 24 माह के भीतर, प:ाधारक सूचना और 7रकाडW हते ु +े, िवकास योजना (एफडीपी) डीजीएच को .[ तुत करेगा और इसक(cid:12) सूचना कोयला मं,ालय को दी जाएगी। इस .कार .[त ुत क(cid:12) एफडीपी को प:ाधारक के बोडW का अनुमोदन .ाf त होगा। x. एमओपीएंडएनजी @ारा पयाWf यत यथोिचत कारण1 के साथ तथा मामला-दर-मामला आधार पर एफडीपी .[त ुितकरण क(cid:12) समयाविध को 12 माह के िलए बढ़ाया जा सकता ह।ै xi. मू(cid:6) यांकन योजना और एफडीपी .[त िु तकरण म(cid:31) 36 माह से अिधक का िवलंब होने पर,प:ाधारक को .ित माह एक लाख \पए का दडं दने ा होगा। xii. एफडीपी म(cid:31) अनुमािनत तारीख से पहले प:ाधारक उ/प ादन शुO नहP करेगा। उ/प ादन म(cid:31) िवलंब होने क(cid:12) ि[ थित म,(cid:31) प:ाधारक को िवलबं के ./य के माह के िलए एक लाख \पए का दंड दने ा होगा। xiii. सीबीएम दोहन के िलए सीबीएम .चालन का अनुभव रखने वाले के<Z अथवा राYय सरकार के पीएसयूज क(cid:12) समान भागीदारी होगी और मु(cid:29)य शेयरधा7रता प:ाधारक क(cid:12) रहगे ी। इससे प:ाधारक @ारा सीबीएम िनC कषWण कायW के िलए घेरलू अथवा िवदशे ी अनुभवी तकनीक(cid:12) िडवले पर1 अथवा सेवा संिवदाकार1 क(cid:12) िनयुिj त पर कोई .भाव नहP पड़ेगा। xiv. सीबीएम खनन प:ा क(cid:12) अविध तभी समाfत होगी जब कोयला प:ा क(cid:12) अविध समाfत होगी। xv. प:ाधारक @ारा कोयला खनन प:ा के अतं गतW आने वाले सीबीएम +े,1 का उपयोग इस .कार (cid:4)कया जाएगा (cid:4)क कोयला खनन काय> स े पहले सीबीएम का िनCक षWण काय W सहज ढंग से हो सके अथवा¹Hkkx Iµ[k.M 1º Hkkjr dk jkti=k % vlk/kj.k 3 कोयला खनन .चालन1 के साथ साथ (cid:4)कया जाए ता(cid:4)क सीबीएम का इCट तम Oप से िवकास और संर+ण (cid:4)कया जा सके। 2. प:ाधारक @ारा संबंिधत संिविधय1 के .ावधान1 के अनुसार पयावW रण, सुर+ा आ(cid:4)द से संबिं धत सभी सांिविध(cid:4)क अपे+ा^ का अनुपालन (cid:4)कया जाएगा। (cid:4)दवाकर नाथ िमmा, सयं ुj त सिचव MINISTRY OF PETROLEUM AND NATURAL GAS NOTIFICATION New Delhi, the 8th May, 2018 F. No. 19018/12/2015-ONG-I.—In partial modification of Coal Bed Methane (CBM) Policy Notification No.O-12011/1/97/ONG.DO.IV dated 19.07.1997 and in supersession of the notification no. 19018/12/2015-ONG-I dated 3rd November, 2015 the Government of India exercising the powers conferred under section (12) of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948) hereby notifies the consolidated terms and conditions for grant of exploration and exploitation rights to Coal India Limited (CIL) and its subsidiaries from coal bearing areas for which they possess mining lease for coal, as hereunder: i. The right vested/mining lease with CIL and its subsidiaries for extraction of coal under the Coal Bearing Areas (Acquisition & Development) Act, 1957 or Coal Mines (Nationalization) Act or Coking Coal Mines (Nationalisation) Act, 1972 or any other act so specified, would be deemed to be a mining lease granted under the PNG Rules 1959 for exploration and exploitation of CBM. CIL and its subsidiaries need not apply for separate grant of license/lease under the PNG Rules, 1959 for extraction of CBM, for such areas. ii. As a lease holder CIL and its subsidiaries will comply with the ORD Act 1948 and P&NG rules 1959 for CBM operations in all such blocks/ fields; iii. Lessee(s) would comply with existing policy of Government of India for utilization and pricing of natural gas. iv. Lessee(s) will be required to pay royalty and requisite fees, levies and taxes as applicable from time to time to State/Central Government at prevailing rates at par with payments which are required to be made for natural gas and as revised from time to time. v. CIL and its subsidiaries will, at present, require to pay royalty @ 10 % ad valorem sale value at the well head to concerned State Government, a fixed one time signature bonus equivalent to US$ 0.3 Million in Indian Rupees on the date of signing of the CBM Contract and also Production Level Payment (PLP) on the CBM production @ 2.5% of the Sale Value of the CBM produced, to Central Government. vi. Exemption from payment of customs duty on imports under SI no. 404 of notification no. 50 /2017 –Customs dated 30th June, 2017, other relevant provisions therein and any4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1] other notifications issued in this regard from time to time by the government will be applicable. vii. Income tax will be payable as per the income Tax Act, 1961. viii. Annual coal mining plans will include details of the area deemed to be mining lease for CBM operation, committed work programme and target for production of CBM during the year, and the same will be incorporated in the MOU between Ministry of Coal (MOC) and the lessee. ix. CIL and its subsidiaries will identify the area for CBM operation and sign the contract with the Ministry of Petroleum and Natural Gas. Within 24 months of signing of contract, the lessee shall submit Field Development Plan (FDP) to DGH for information and record, under intimation to the MOC. FDP so submitted shall have the approval of the Board of the lessee. x. The time period for submission of FDP may be extended by 12 months by MoP&NG on a case to case basis with sufficient justifications. xi. For delay in submission of appraisal plan and FDP beyond 36 months, the lessee will be liable to pay a penalty of Rs. One lakh per month. xii. The lessee shall start production not later than the projected date in the FDP. For delay in production; lessee would be liable to pay a penalty of Rs. One lakh per month of delay. xiii. Equity participation for CBM exploitation shall be limited to Central or State PSUs with experience in CBM operations with the majority share holding remaining with the Lessee. This shall not restrict the engagement of experienced technical developers or service contractors, whether domestic or foreign, for CBM extraction by the Lessee. xiv. Relinquishment of CBM mining lease will be co-terminus with coal lease. xv. CBM areas covered under coal mining lease area will be utilized by the lessee in a manner so as to facilitate extraction of CBM prior to coal mining operations or simultaneously with coal mining operations to optimally develop and conserve CBM. 2. All statutory requirements relating to Environment, Safety, etc. shall be complied with by the Lessee in accordance with the provisions of the relevant statutes. DIWAKAR NATH MISRA, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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