Oilfields (Regulation and Development) Amendment Bill, 2024

1. Expanded Definition of Mineral Oils

The bill broadens the definition of mineral oils to include:

• Shale gas and oil
• Coal bed methane
• Any naturally occurring hydrocarbons This diversification reflects India’s goal of tapping into unconventional energy sources to strengthen its energy security.

2. Introduction of Petroleum Lease

Replacing the traditional mining lease, the petroleum lease is tailored specifically for oil and gas operations. This new classification simplifies regulatory processes, streamlining activities like exploration, production, and the development of hydrocarbons.

3. Ease of Doing Business

• The bill delinks petroleum operations from traditional mining activities, reducing administrative hurdles for granting leases.
• It allows shared usage of production and processing facilities, fostering cooperation among operators.
• Alternative dispute resolution mechanisms have been proposed, offering faster resolutions for industry disputes.

4. Decriminalization of Offenses

• The earlier provision of imprisonment for violations is replaced with financial penalties. For example, operating without a valid lease now incurs a penalty of ₹25 lakhs, with additional daily fines for continued violations.
• This measure aligns with broader government initiatives to reduce criminal liabilities in business regulations.

5. Environmental Safeguards

The bill introduces new obligations for lessees, such as:

• Reporting greenhouse gas emissions
• Facilitating renewable energy projects, including solar and wind, at oilfields
• Promoting the adoption of technologies like carbon capture, utilization, and storage (CCUS)