Dimapur, Oct. 21 (EMN): Nagaland Congress has on Friday strongly objected to the alleged Memorandum of Understanding (MoU) signed between Ministry of Petroleum and Natural Gas (MOPNG), government of India, and Nagaland state in regard to payment of royalty for exploration of oil in Nagaland.
A press release issued by the president of Nagaland Pradesh Congress Committee (NPCC), K Therie, claimed the Nagaland Petroleum and Natural Gas Rules 2012 was a compromised. Therie maintained that the Nagaland Ownership and Transfer of Land and Its Resources Act 1990 give absolute authority to Nagaland state.
He has, however, objected to the split in ratio in revenue between the state and the company.
“In the present MoU between the state and ONGC, the split is 22:78% ratio of division of revenue between the state and the company. This is not acceptable. The split should be not less than 51% for the state. Special payment of 2% valorem should be in addition to the state’s 51%,” Therie said adding that there should be a clause whereby the state government has authority to terminate or restrain.
While examining MoU of other nations, Therie felt that the MoU between the Ministry of Petroleum and Natural Gas, GOI, and Nagaland state in regard to uniformity of royalty payment was not acceptable.
“We are not uniform with other states in view of Article 371(A) and therefore the MOU is a compromise,” Therie said.
“In the matter of Article 371(A), ever since the Nagaland Ownership and Transfer of Land and its Resources Act 1990 was sent for the President’s assent, the matter has been in contest between GOI and the state. We have claimed the power to frame rules relating to petroleum and natural gas belongs to Nagaland state in view of Art 371 (A) IV. However, GOI claims this power as mineral resources and listed in the Union list. Our argument is that in the foregoing note of Art.371 (A) clearly states, notwithstanding anything in this Constitution, no Act of Parliament shall apply to the contents of Art 371(A) unless the Legislative Assembly of Nagaland by a resolution so decides. As such, the Union List does not come in the way,” Therie added.
He felt that Nagaland state government should stand by the above interpretation. In view of the stand, Therie felt that the notification issued under Schedule to the Oil Fields (Regulation and Development Act 1948) in regard to fees and royalties are not applicable.