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PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - LONG TITLE

An Act to vest in the Ministry of Commerce the property in
undeveloped petroleum in Northern Ireland; to make provision with
respect to searching and boring for and getting petroleum; and for
purposes connected with the matters aforesaid.{1}
[13th October 1964]
Vesting of undeveloped petroleum in the Ministry of Commerce.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 1

1.(1) Subject to the provisions of this Act, the property in
petroleum existing in its natural condition in strata in Northern
Ireland is hereby vested in the Ministry of Commerce (in this Act
referred to as "the Ministry").

(2) Subsection (1) shall not apply to any petroleum which vested in
the Ministry by virtue of section 6 of and Schedule 1 to, the
Minerals (Miscellaneous Provisions) Act (Northern Ireland) 1959 (in
this Act referred to as "the Act of 1959").

(3) Without prejudice to its powers to grant licences under section
2, the Ministry shall have the exclusive right of searching and
boring for and getting the petroleum vested in it under subsection
(1) or by virtue of the provisions of the Act of 1959 referred to
in subsection (2) ....

(4) Subsection (1) shall not apply to any petroleum vested in Her
Majesty or in any department of the Government of the United
Kingdom.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 2
Licences to search for and get petroleum.

2.(1) The Ministry may grant to such persons as it thinks fit
licences to search and bore for and get petroleum.

(2) Any such licence may be granted for such consideration, [if
any,] by way of royalties calculated in such manner, together with
such other payments, if any, as the Ministry with the consent of
the Ministry of Finance may prescribe and upon such other terms and
conditions as the Ministry may specify in the licence, including
conditions requiring the licensee to pay compensation to persons
suffering any damage or injury resulting from or arising out of the
exercise of any right authorised by the licence or of any ancillary
right which the licensee is authorised to exercise by virtue of
section 3 and conditions guaranteeing or securing the payment of
such compensation.

(3) Notwithstanding anything in the Interpretation Act (Northern
Ireland) 1954 a licence granted before the commencement of this Act
by the Ministry under the Petroleum (Production) Act 1918 (in this
Act called the "Act of 1918") shall not operate as a licence
granted under this section but where the Ministry is satisfied that
the licensee named in any such first-mentioned licence has duly
complied with all the terms and conditions thereof, the Ministry may
give reasonable preference to such licensee when granting licences
under this Act in respect of any area for the time being included
in the first-mentioned licence.

(4) Section 5 of the Stormont Regulation and Government Property Act
(Northern Ireland) 1933 shall not apply to licences granted by the
Ministry under this section.

(5) The Ministry shall as soon as may be after granting a licence
under this section publish notice of such grant in the Belfast
Gazette specifying the name of the licensee and the locality of the
area in respect of which the licence was granted.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 3
Application of Act of 1969 respecting land and ancillary rights.

3. For the purpose of enabling the Ministry or a person holding a
licence from the Ministry under this Act to acquire [or use land
or] ancillary rights, the provisions of [sections 23 to 28, 47 and
56(3) of, and Schedule 2 to, the Mineral Development Act (Northern
Ireland) 1969 (in this Act referred to as "the Act of 1969")]
shall have effect with the modifications set out in the Schedule to
this Act.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 4
Compensation.

4.(1) Compensation shall be payable in accordance with the succeeding
provisions of this Act and not otherwise in respect of petroleum
vested in the Ministry under section 1(1).

(2) Compensation under subsection (1) shall be related to royalties
payable on the following forms of petroleum:

(a)crude oil won and saved;

(b)casinghead petroleum spirit recovered;

(c)natural gas won and saved;

(d)any other form which may be prescribed.

(3) For the purposes of the succeeding provisions of this Act

"the appointed area" of a petroleum well, means the land contained
in a circle around that petroleum well having a radius of a
quarter of a mile and a centre fixed in the prescribed manner;

"the compensation area" of a petroleum well, means so much of the
appointed area thereof as consists of land whereof an estate in
underlying minerals was immediately before the commencement of this
Act vested in any person other than the Ministry not being land
which at any time before such commencement had been the subject of
a merging order made by the Ministry under section 8 of the Act
of 1959.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 5
Form and amount of compensation.

5.(1) Compensation shall be in the form of a share of the
royalties relating to a particular petroleum well.

(2) The total amount of compensation payable in relation to any
petroleum well within the area specified in a licence granted under
section 2 shall be such proportion of [the net proceeds (after
deducting so much of the costs and expenses, which may include
administrative expenses, of the Ministry as are certified by the
Ministry to be attributable or apportionable to such well)] of the
royalties reserved by the said licence in relation to such well, as
the compensation area of that well bears to the appointed area
thereof [; and a certificate of the Ministry under this subsection
shall be prima facie evidence of the matters stated therein].

(3) The total amount of compensation payable in relation to any
petroleum well sunk by or on behalf of the Ministry shall be such
proportion of [the net proceeds (after deducting so much of the
costs and expenses, which may include administrative expenses, of the
Ministry as are certified by the Ministry to be attributable or
apportionable to such well)] of the royalties which would have been
payable if that well had been within the area specified in a
licence granted under section 2 as the compensation area of the
well bears to the appointed area thereof [; and a certificate of
the Ministry under this subsection shall be prima facie evidence of
the matters stated therein].

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 6
Persons entitled to compensation.

6.(1) Subject to the succeeding provisions of this section, the
right to compensation in relation to any well shall be deemed to
have vested in the persons who, immediately before the commencement
of this Act, were entitled to any estate in any minerals (excluding
an estate in minerals which did not include petroleum) lying under
the appointed area of that petroleum well.

(2) A person shall not be entitled to compensation in respect of
petroleum underlying land which at any time before the commencement
of this Act had been the subject of a merging order made under
section 8 of the Act of 1959.

(3) A licensee under a licence granted before the commencement of
this Act by the Ministry under the Petroleum (Production) Act 1918
shall not be taken to hold, by virtue of that licence, any estate
in land or minerals.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 7
Claims for compensation.

7.(1) Where compensation is payable under sections 4 to 6 in
relation to any petroleum well the following provisions shall have
effect:

(a)the Ministry shall publish notice of that fact in one or more
newspapers circulating in the locality of the appointed area of the
well [and shall in the notice name a place or places (including at
least one place in the locality) where maps identifying the
appointed area of the well are available for inspection at all
reasonable hours;]

(b)the notice shall indicate that any person who, having regard to
the provisions of section 6, claims to be entitled to compensation
for such petroleum may submit his claim for such compensation to
the Ministry;

(c)[subject to subsections (3) and (4)] 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
[first] publication;

(d)as soon as may be after the expiration of the period specified
in paragraph (c), the Ministry shall refer every claim for such
compensation to the Lands Tribunal for Northern Ireland (in this Act
referred to as "the Tribunal").

[(2) On the expiration of the period mentioned in paragraph (c) of
subsection (1), or (if all relevant claims appear to the Ministry
to have been made) of such lesser period as appears to the
Ministry to be appropriate, the Ministry shall proceed to consider
the claims made as mentioned in that paragraph.

(3) Where the Ministry is satisfied that good reasons exist for the
failure of any person to submit a claim for compensation under
sections 4 to 6 before the expiration of the period mentioned in
subsection (1)(c), his claim may be accepted after the expiration of
that period.

(4) Any question arising as to the existence of good reasons such
as are mentioned in subsection (3), where the Ministry has not
accepted a late claim, shall, in default of agreement, be referred
to and determined by the Tribunal.]

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 8
Awards of compensation by the Tribunal.

8.(1) Where claims for compensation are referred to the Tribunal
under section 7, the Tribunal shall adjudicate upon the said claims
and embody their findings in an award.

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

(a)shall be conclusive evidence of all matters purported to be
certified therein;

(b)may, by leave of the High Court, be entered as a judgment in
terms of the award, and shall thereupon have the same force and
effect as a judgment or order of the court.

(3) In apportioning compensation for petroleum at a particular well,
the Tribunal may, as between two or more persons entitled to
compensation, have regard to the relative extent of the area of
entitlement, within the compensation area of that well, of each of
them.

(4) For the purposes of subsection (3), 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 commencement of this Act, an estate.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 9
Appearances before Tribunal.

9. On the adjudication by the Tribunal of claims for compensation
referred to the Tribunal under section 7 of this Act, the Ministry
and every claimant shall be entitled, by counsel or solicitor or in
person, to appear, be heard and adduce evidence.

S.10 rep. by 1969 c.35 (NI) s.62(2) sch.4 Pt.I

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 11
Share of persons entitled under s.13(3) of Irish Land Act 1903.

11.(1) Where royalties are received by the Ministry in respect of a
petroleum well or where the Ministry makes any profit from working
a petroleum well and the appointed area of that well contains land
under which there is situate petroleum which vested in the Ministry
under section 6 of, and Schedule 1 to, the Act of 1959, the
Ministry shall pay to the former vendors of that land such
proportion of one-quarter of those royalties or profits as the area
of that land bears to the appointed area and such payment shall be
in lieu of, and shall operate to discharge all liability of the
Ministry on foot of, the percentage required by section 13(3) of
the Irish Land Act 1903 to be paid to the former vendors in
respect of that petroleum.

(2) In this section "former vendors" in relation to any land means
the persons for the time being entitled under section 13(3) of the
Irish Land Act 1903 to receive in respect of petroleum underlying
that land the percentage provided for in that subsection.

(3) In section 8(4) of the Act of 1959 the words from "and upon
registration" to the end of the subsection shall be deemed not to
have effect in relation to petroleum.[

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 11A
Payments under section 11.

11A.(1) Where it appears to the Ministry that payments may be due
to any person in respect of the proportion mentioned in section
11(1), the Ministry shall, in notices published as mentioned in
section 7(1), indicate that any person who claims to be entitled to
the whole or any part of that proportion may submit his claim
therefor to the Ministry.

(2) Subject to subsections (4) and (5), where notices containing any
such indication are published, no claim for any part of the said
proportion shall be entertained unless it is made not later than
twelve months after the date on which the notices were published
or, if published on different dates, the date of the first
publication.

(3) On the expiration of the period mentioned in subsection (2) or
(if all relevant claims appear to the Ministry to have been made)
of such lesser period as appears to the Ministry to be appropriate,
the Ministry shall proceed to consider the claims made as mentioned
in that subsection.

(4) Where the Ministry is satisfied that good reasons exist for the
failure of any person to submit a claim for the said proportion
before the expiration of the period mentioned in subsection (2), his
claim may be accepted after the expiration of that period.

(5) Any question arising as to

(a)the entitlement of any person to the said proportion, or

(b)the amount payable by way of that proportion, or

(c)the existence of good reasons such as are mentioned in subsection
(4), where the Ministry has not accepted a late claim,

Satisfaction of claims for compensation or for payments under section
11.

[

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 11B

11B.(1) Without prejudice to any award of the Lands Tribunal, where
compensation is payable to any persons under sections 4 to 6 or
any proportion of the fraction mentioned in section 11 is payable
to any persons, the Ministry may make payments to those persons in
respect of the compensation or, as the case may be, that proportion
at such times or intervals as are reasonable having regard to the
size and nature of the payments concerned.

(2) The provisions of paragraphs 12 and 14 to 17 of Schedule 2 to
the Act of 1969 shall have effect with respect to the satisfaction
of claims for the said compensation or proportion as they have
effect with respect to the satisfaction of claims for compensation
under that Schedule with

(a)the substitution for any reference to compensation under that
Schedule of a reference to the said compensation or proportion,

(b)the substitution for any reference to the compensation fund of a
reference to the Ministry, and

(c)in paragraph 16, the substitution for the reference to the date
of the vesting of the land or ancillary rights of a reference to
the date of the expiration of one month after

(i)in the case of compensation payable under sections 4 to 6, the
date of the receipt by the Ministry of the royalties from the net
proceeds of which the compensation is payable or, where section 5(3)
applies, the date on which the royalties would have been received
if the well had been within the area specified in a licence
granted under section 2, or

(ii)in the case of the said proportion, the date of the receipt by
the Ministry of the royalties or profits from a fraction of which
that proportion falls to be calculated;

(c)and the omission of the words from "or where the compensation is
payable by instalments" to "the instalment falls due".][

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 11C
Disposal of dormant or unclaimed moneys.

11C. Section 43 of the Act of 1969 shall have effect for the
purposes of this Act with the substitution in subsection (1) thereof

(a)for any reference to mines and minerals or minerals of a
reference to petroleum, and

(b)for the reference in paragraph (a) to compensation under section
29 of that Act of a reference to compensation payable under
sections 4 to 6, and

(c)for the reference in paragraph (b) to the second proviso to
section 13(3) of the Irish Land Act 1903 of a reference to section
11(1), and

(d)for the reference to paragraph 15 of Schedule 2 to that Act as
modified by section 42(2) of that Act of a reference to that
paragraph as modified by section 11B(2).]

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 12
Account of receipts and expenditure under Act.

12. Before the first day of October in ... each ... year an
account shall be prepared by the Ministry, in such form and in
such manner as the Ministry of Finance may direct, of the moneys
received and expended by the Ministry under this Act during the
last preceding financial year, and the Comptroller and Auditor-General
shall examine and certify every such account and shall lay copies
thereof, together with his report thereon, before both Houses of
Parliament.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 13
Power to make regulations.

13.(1) The Ministry may make regulations prescribing

(a)the manner in which and the persons by whom applications for
licences under this Act may be made;

(b)the fees to be paid on any such application;

(c)conditions as to the extent and shape of areas in respect of
which licences may be granted under this Act and as to the siting
and placing of bore-holes and petroleum wells;

(d)model clauses which the Ministry may incorporate (directly or by
reference) in any licence under this Act;

(e)any other matter which under this Act may be prescribed.

(2) Regulations made under this Act shall be subject to negative
resolution.

(3) The Public Offices Fees Act 1879 shall not apply to any
prescribed fees.

S.14 rep. by 1969 c.6 (NI) s.163 sch.5

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 15
Interpretation.

15. In this Act

Definition rep. by 1969 c.35 (NI) s.62(2) sch.4 Pt.I

"Act of 1959" has the meaning assigned to it by section 1(2);

["Act of 1969" has the meaning assigned to it by section 3;]

"the appointed area" has the meaning assigned to it by section
4(3);

"casinghead petroleum spirit" means any liquid hydrocarbons obtained
from natural gas by separation or by any chemical or physical
process;

"the compensation area" has the meaning assigned to it by section
4(3);

"crude oil" means oil in its natural state before the same has
been refined or otherwise treated but excluding water and foreign
substances;

"the Ministry" has the meaning assigned to it by section 1(1) of
this Act;

"natural gas" means gas obtained from boreholes and wells and
consisting primarily of hydrocarbons;

"petroleum" includes any mineral oil or relative hydrocarbon and
natural gas existing in its natural condition in strata, but does
not include coal or bituminous shales or other stratified deposits
from which oil can be extracted by destructive distillation;

"prescribed" means prescribed by regulations; and

"the Tribunal" has the meaning assigned to it by section 7(d) of
this Act.

S.16 repeals with saving 1918 c.52 and s.1 (pt.) of 1959 c.17 (NI)

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 17
Application of this Act.

17.(1) Nothing in this Act shall be construed as imposing any
liability on any person where in the course of mining or other
lawful operations petroleum is set free.

(2) Nothing in this Act or in any licence granted under this Act
shall be construed as conferring any right to enter on or interfere
with land other than a right conferred under the provisions of the
Act of [1969] applied by section 3 but this subsection shall not
operate to prejudice or affect any right which is exercisable by
the Ministry apart from this Act.

PETROLEUM (PRODUCTION) ACT (NORTHERN IRELAND) 1964 - SECT 18
Short title.

18. This Act may be cited as the Petroleum (Production) Act
(Northern Ireland) 1964.

1. References to minerals shall be construed as including references
to petroleum, references to a mine shall be construed as including
references to a petroleum well, and references to the working of
minerals shall be construed as including references to the storing
and processing of petroleum.

2. References to a prospecting licence and a mining lease or mining
licence shall be construed as including references to, respectively,
a licence under this Act authorising a person to search and bore
for, but not to get, and such a licence authorising a person to
search and bore for and get, petroleum.

3. References to a mining facilities order or a mining facilities
permit shall be construed as references to such an order or permit
made or granted by virtue of section 3 and this Schedule.

4. Without prejudice to the generality of section 23(1) or (2) of
the Act of 1969, the ancillary rights therein mentioned shall
include, in addition to the rights mentioned in section 56(3) of
that Act, a right to enter upon land and to sink and bore holes
therein for the purpose of searching for or, as the case may
require, getting petroleum, and a right to use and occupy land for
the erection of such buildings, the construction, operation and
maintenance of such pipes and the construction of such other works
as may be required for the purpose of searching or boring for or
getting, carrying away, sorting, processing, treating or converting
petroleum.

5. In section 47 of the Act of 1969 subsections (1)(a) and (2)(a)
shall be omitted.

6. In sections 23 to 28, 47 and 56(3) of and Schedule 2 to the
Act of 1969 any reference to that Act or any provision of that
Act shall be construed as a reference to that Act or provision as
modified by this Schedule.]