Section 6A — Royalties in respect of mineral oils.

1 [6A. Royalties in respect of mineral oils. --- (1) The holders of a mining lease granted before the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any mineral oil 2 [produced] or collected by him from the leased area after such commencement, at the rate for the time being specified in the Schedule in respect of that mineral oil. (2) The holder of a mining lease 3 [or petroleum lease] granted on or after the commencement of the Oilfields (Regulation and Development) Amendment Act, 1969 (39 of 1969) shall pay royalty in respect of any mineral oil 2 [produced] or collected by him from the leased area at the rate for the time being specified in the Schedule in respect of that mineral oil. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2) , no royalty shall be payable in respect of any 4 [mineral oils] which is unavoidably lost or is returned to the reservoir or is used for drilling or other operations relating to the production of 5 [mineral oils]. 6 [(4) The Central Government may, by notification in the Official Gazette, amend the Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral oil with effect from such date as may be specified in the notification and different rates may be notified in respect of same mineral oil 2 [produced] or collected from the areas covered by different classes of 7 [petroleum leases]: Provided that the Central Government shall not fix the rates of royalty in respect of any mineral oil so as to exceed twenty per cent. of the sale price of the mineral oil at the oilfields or the oil well-head, as the case may be. (5) If the Central Government, with a view to encourage exploration in off-shore areas, is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally, either absolutely or subject to such conditions as may be specified in the notification, mineral oil produced from such areas from the whole or any part of the royalty leviable thereon.]

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