PROSPECTING FOR OIL

Taranaki Daily News, 18 October 1927, Page 11

PROSPECTING FOR OIL

BILL PROVIDES NEW RULES THE REGULATION OF LICENSES. FACILITIES AND RESTRICTIONS. (By Wire—Special Reporter.) Wellington, Last Night. A Bill to encourage the production of petroleum from Crown and other lands, and to provide for the issue of warrants and licenses for the winning of oil, was introduced into the House of Representatives to-night. Except where warrants and licenses have already been issued under the Mining Act, the Bill provides that in future it will be illegal to prospect for petroleum unless a prospecting warrant or license has first of all been obtained. This prohibition applies to the owner of any land equally with other- persons. Power is given to the Governor-Gen-eral to issue proclamations declaring lands open for prospecting or for the winning of petroleum. The proclamations may relate to any Crown, Native, private or other lands whether subject to lease, license, mortgage, reservation or other restrictions. Provision is contained in the Bill for the lodging of objections to the issue of a proclamation, and these will be heard by a Magistrate. The Minister is given discretion to uphold or reject an objection after he has received the Magistrate’s recommendation. Thirty days is allowed in which to lodge objections.

The Minister may allow geological surveys to be made of any lands for the purpose of ascertaining whether it is oil-bearing or not. - The consent of the owner must be obtained to carry out prospecting on land used as a garden, orchard, vineyard, nursery, plantation or ornamental pleasure ground, on areas within borough or town districts less than a quarter of an acre in extent, or on land which is the site of or is situated within 100 feet of any house, factory, hospital, church, public building, cemetery or waterworks. An applicant for a prospecting warrant must deposit a sum to be fixed by the Minister or enter into a bond as security for compliance with the terms of the warrant. Money recovered under this section may be utilised in restoring or protecting property in- ! juriously affected by failure to comply with the terms of the Act. Boring equipment must be installed, and put into operation within three months of the granting of a warrant to prospect and the work must be continued until the Minister is satisfied that the well is unsuccessful. The Minister may issue a license to a person, notwfetanding that he does possess a prospecting warrant, but this provision does not apply to land in respect to which a warrant has been issued, unless the holder of the warrant agrees. Power is given io the licensee to divert water for the purpose of his mining operations. The licensee may not assign, transfer or sub-let his license without the Minister’s consent. A licensee having the use of pipe lines may be required to carry petroleum belonging io other licensees. If the Minister has reason to believe that the license holder has failed to comply with the provision of the Act or license ho may require the licensee to appear before a Magistrate or warden to show cause why the license or warrant should not be cancelled.

Persons injuriously affected by the operations of the Act may claim compensation in the manner laid down in the Public Works Act. Licensees will be required to pay royalties equal to 10 per cent, of the value of the crude petroleum won, to the Under-Secretary of Mines to meet the expenses of administration and other charges. A sum not exceeding 10 per cent, of the royalties shall be paid in to the Consolidated Fund and the residue will go to the owners of the lan<L The Bill contains a number of miscellaneous provisions, including one giving the Crown the right in priority to purchase the output of petroleum in lime of emergency, and a number of clauses dealing with the powers oi inspectors. The Bill was referred to' the Lands Comrrittee.