While the matter of Petroleum and Natural Gas issue is sub judice as a result of the PIL filed by some members of Lotha Hoho on the matter, the undersigned are compelled to issue this press release as it is deemed that some news items invariably create confusion in the minds of the general public both within and outside the Community (Lotha). Lotha Hoho while reacting to the appeal made by NGBF to withdraw the PIL file by the former on Nagaland P&NG Regulation and Rules mentioned that six memorandums and appeals, including that of Lotha Legislators in 2008 have been submitted to the Government and that response was being awaited. The Legislators submitted no memorandum in 2008 as implied. Therefore, this is a clarification of the Lotha Legislators of the 11th NLA (2008-13) to allay any confusions or misunderstanding that may have resulted. In view of the fact that all the four Legislators of the District were in the treasury bench of the Government, Lotha Community raised hopefulness that its Legislators will take good initiatives and leadership for all round development of the District and in particular, to revive exploration and extraction of oil in the District. Accordingly, on this issue(oil exploration and extraction) multiple meetings were held with the Lotha Gazette Officers’ Union, the Kyong Hoho and its frontal Units, LLRPO, Kohima and Dimapur Lotha Hohos, The Kyong Students’ Union, the concerned Land Owners etc. Discussions mainly focused on Changpang oil fields, which are already producing fields. After these deliberations, consensual points specially related to installation of mid downstream facilities and protection of the rights of the landownersin terms of rehabilitation, employment and land usewere hammered out. These were summarized into a concise charter and a DO Letter was written to the Principal Secretary Department of Geology and Mining; Govt. of Nagaland on 15th July 2008 by the four Legislators on behalf of the Lotha Community (barely four months after the formation of the 11th House of the NLA). The wish of the people of Wokha District was also brought to the notice of the then Chief Minister Shri Neiphi-u Rio with whom the Legislators had a very progressive discussion.
With this consensus among different Lotha leaders and the landowners,the issue was taken up for Cabinet discussions. This in time led to the formation of a Cabinet Sub-Committee on oil led by Shri T. R. Zeliang, the then Minister Planning and present Hon. Chief Minister of the State. Shri Y. Patton Hon. Minister Home who was the then Parliamentary Secretary holding the charge of Geology and Mining was also made a member of the CSC. The first step taken by the CSC was to advice the Cabinet on the need to pass an assembly Resolution on Article 371 A. Accordingly the 26th July 2010 Assembly Resolution on Article came into being which is now a history. The CSC painstakingly researched into all aspects of oil exploration& Extraction searching out worldwide experiences by involving experts in the field, but always keeping Article 371 A in the picture making it the basis of all discussions. Ultimately, after a process of consultations involving Tribal Hohos, the Nagaland P&NG Regulations 2012 was passed in the Assembly on 22nd September 2012 and the Nagaland P&NG Rules 2012 was framed and notified on 7th December 2012.
Again, following laying of the draft Regulations for discussion, Lotha Community leaders raised points of shortfalls and for inclusion in the Regulations. Therefore, a meeting of Wokha District Legislators, Lotha Gazetted Officers’ Union, Kyong Hoho, LLRPO, Kohima Lotha Hoho, Dimapur Lotha Hoho, CLOU, Kyong Eloe Hoho and Kyong Students’ Union was convened on 9 September 2012 at Hotel Japfu. All but Dimapur Lotha Hoho attended the meeting. The five hour long meeting which started at 02:00 pm deliberated on revenue sharing, infrastructure, employment opportunities, issue related to land use and the need for inclusive and consultative approach. Finally, a 5 (five) point charter of demands were filtered and agreed upon by raise of hands and the same with appended signatures were submitted to the Convener CSC the same night. The Convener CSC was very receptive as all the demand made were duly taken into consideration except the revenue sharing which the convener said was done after much research and rates laid were minimum and base point subject to variability on bidding. Meaning, the shares will be invariably more than what has been laid in the Regulations. After all these participatory approach, many Lothas were taken by surprise by the PIL. Let it be known that the present PIL is not a conscious decision of Lotha Tribe but a decision of a handful of people from the Tribe. Importantly, it (the PIL) also does not have the will of the landowners of the District at stake.
The following excerpts from the Nagaland P&NG Regulations 2012 & The Nagaland P&NG Rules 2012will make clear how diligently the Regulations and Rules explicated Article 371 A and sought in all possible ways to protect Naga Customary Law and the rights of the landowners and importantly an inclusive approach involving Tribal Hohos. 1. Indicators of protection of Naga Customary Law.
Regulation 5 No owner of land or oil and gas well in Nagaland, whether an individual or a village body or the State Government shall alienate land or such well in favour of a non-Naga or a Company but may give consent to a non-Naga or a Company to access land or oil or gas well for pre-production, production and post-production operation in a zone, which shall revert to the owner at the end of the operations.
Regulation 12 (f) The Company should have trust in Nagas, their culture, customs and way of life. Regulation 16
The company operating under these Rules shall name all petroleum and natural gas products and by-products by prefixing to the name of every such product or by product the Brand Name “Naga”…… Regulation 22 (1) Every company, before being issue with a permit for pre-production production or post-production operations shall give an undertaking to the State Government that it shall bind itself to the Naga customary practices of the respective Tribes.
Rules 9 (2)(iii) Every expression of interest shall contain… An undertaking that the company shall bind itself to the Naga customary practices of the respective tribes as required under Regulation No. 22.
Rules 24 (2) The Hoho(s) will have primordial responsibility in adjudging the ground situation in the Zones and in serving as a link between the State Government and the Land owners and the Village Councils, so that the customary practices of the Nagas and the corporate practices of the companies are harmonized in the best ways with the least detriment to each other.
2. Indicators of the inclusive nature of The P&NG Regulation & Rules2012 and delegation of authority to Tribal Hohos and Village Councils.
Regulation 4 (1); 3 An individual owner of oil or gas well in Nagaland and /or lands in a zone shall be certified to be so by the village council concerned.
Regulation 13
(3) No permit for pre-production or post-production operations shall be issue to a company and no renewal of permit or fresh issue of permit shall be done, without an agreement providing for the land access annually in advance to the land owners, being signed between the Government on behalf of the landowners, and the company, with the Tribal Hoho(s) and the Village Councils concerned as witnesses.
Regulation 13 (4) Immediately upon signing of the Agreement as in clause 13(3), another Agreement shall be signed between the land owners and the company for handing over the land for access to the company for the requisite period, with the Village Council concerned as witness.
Regulation 14 (5) No permit for production operations shall be issued to a company without an agreement to the aforesaid revenue sharing arrangement signed between the Government on behalf of the landowners, and the company, with the Tribal Hoho(s) and the Village Councils concerned as witnesses.
Regulation 23 (2) Monitoring and Reporting: There shall be a Committee at the District level of the Zone(s) concerned with Deputy Commissioner as the Head and the President(s) of Tribal Hoho(s) as members with representatives drawn from the private landowners and village councils.
Regulation 24 (4) The Government of Nagaland shall consult the Tribal Hoho(s) while framing rules under the provision.
Rules 5
The President of Naga Hoho and the President ENPO shall be ex-officio permanent invitees to the Meeting of the Board (Nagaland P&NG Board). There is objection to this clause from certain sections because of the fact that Naga Hoho jurisdiction has expanded to areas outside Nagaland and therefore the awkward possibility of a Non-Nagaland Naga holding the post of Naga Hoho president. This is not a big issue, the State Government of Nagaland can direct Naga Hoho and ENPO to create a Committee on P&NG in their respective Organizations with members comprising of Nagas of Nagaland only. The Conveners of the two Committees can be made the permanent ffxinvitees to the Nagaland P&NG Board. Rules 12 (2), Rules 19 (7), 21 (4) may also be accordingly amended. Rules 12 (2)
The President of Naga Hoho, the President of ENPO and the Presidents of respective Tribal Hoho(s) of the Zone(s) may be invited as special invitees to the meeting. (of the Ministerial Group). Rules 13 (1)
The Chairman of the Board will request the President of Naga Hoho/ENPO to obtain consent of the landowners in writing in the form of a “no objection certificate” for undertaking the operations.
Rules 15 (2) …. Immediately upon signing Agreement under Regulation 14 (5), another Agreement shall be signed between the land owners and the company for handing over the land for access to the company for the requisite period, with the village council concerned as witness…. Rules 17 (2)
The Deputy Commissioner shall, before finalizing the list of land owners, shall consult (i) the Village Councils; (ii) the Tribal Hohos concerned …… Rules 19 (7)
(Land Access Fee): All disputes relating to payment or nonpayment of moneys in this behalf by the company and to the land owners shall be dealt with by the Board at special sittings convened for the purpose during which the President of Naga Hoho/ENPO and the Presidents of Hohos of the Zone(s) concerned shall assist the Board. Rules 21 (4) (revenue share): All disputes relating to payment or nonpayment of moneys in this behalf by the company and to the land owners shall be dealt with by the Board at special sittings convened for the purpose during which the President of Naga Hoho/ENPO and the Presidents of Hohos of the Zone(s) concerned shall assist the Board. Rules 24
(1) Hoho(s) to play lead role:
The Naga Hoho, the ENPO and the respective Tribal Hoho(s) shall have a lead role in maximizing economic benefits for the landowners, a sustainable development of the areas under operations and other infrastructure and commercial investments in the zones and the State as a whole. Rules 24 (2) (stated above)
3. Indicators that the rightsand benefits of the landowners have been duly considered. …..the State Government shall carefully keep in view … Regulation 12
(b) The plan of the Company in regards to corporate social responsibility especially for providing a sustainable income generation ambience to the people of the areaconcerned and for promoting health, education and infrastructural development.
Regulation 12 (c)
The utmost care the company takes in environmental protection issue. Regulation 12 (d) The trust the company enjoys in the eyes especially of the landowners. Regulation 12 (e) The Company’s ability to set up refineries, other ancillary industries and in utilizing gas. Regulation 13 (1) …… a company shall pay to the State Government for further disbursement to the landowners, a land access fee for using their land at such uniform rates as are currently applicable in the State for such land… Regulation 14 (1)
(a) Share of revenue: Not less than two percent both in case of petroleum and natural gas collectively to the individual land owners who owns oil or gas wells in a zone. Regulation 14 (1)
(b) Share of Revenue:Not less than four person in case of Petroleum and not less than two percent in case of natural gas collectively to other individual and land ownerswho do not own oil or gas well in a zone. Regulations 14 (1)
(c) Share of revenue: Not less than two percent both in case of petroleum and not less than two percent in the case of natural gas to the District Development Board of that zone. Regulation 17 (1) …. Shall compulsorily reserve not less than 50 % jobs of unskilled category and 10% of non-technical white-collar jobs to Naga youths from the respective oil/gas bearing Districts in all (i) pre-production (ii) production and (iii) post-production operations.
These excerpts from the Regulation and Rules are enough indicators that all due consideration have been given to our customary practices and the rights of landowners. Also that, the Tribal Hohos and Village Councils of the producing zones are empowered.The landowners stand to have multiple benefits viz. from the revenue share, the land access fee, employment and from corporate social actions and also not forgetting by reversion of the land to the respective owners on completion of operations.
Fellow Nagas,its high time truth goes into our minds and understand without confusion that,notwithstanding anything laid in the Constitution of India, Article 371 A, only seeks to empowers the State Legislative Assembly to resolve on whether or not to accept any Acts of Parliament in respect of (i) Religious and Social practices of Nagas, (ii) Naga customary law and procedure, (iii) administration of civil and criminal justice involving decisions according to Naga customary law. (iv) ownership and transfer of land and its resources. In regards to P&NG,this means that, Indian Petroleum Act 1934 and the Indian Petroleum Rules 1976 should not be applicable to the State of Nagaland ifNagaland State Assembly resolves not to. Otherwise our State will continue to be bound by the same Indian Act & Rules on P&NG.
Framing of Nagaland P&NG Regulations and Rules 2012 was therefore in the right direction and constitutional. The opening statement of the Nagaland P&NGRegulation 2012 is quoted here for readers’ understanding; “…WHEREAS the Nagaland Legislative Assembly, in exercise of its powers under Article 371-A(1)(a) of the Constitution of India, had unanimously passed a Resolution on the 26th July 2010 rendering inter alia all Acts of Parliament governing petroleum and natural gas inapplicable to the State of Nagaland….
… NOW THEREFORE, in continuation of the legislative affirmation as contained in the Resolution dated the 26th July, 2010 and in exercise of its special Constitutional powers conferred upon it by the provisions in article 371-A(1)(a) of the Constitution of India, the Nagaland Legislative Assembly hereby resolves to re-state the customary practices of Nagas to “ownership of land and its resources” particularly in relation to petroleum and natural gas within the territory of Nagaland by enacting the following Regulations.” In conclusion, the undersigned also urge the Lotha Hoho to withdraw the PIL on P&NG as it tantamount to challenging the constitutional authority of Nagaland Legislative Assembly as provided under Article 371 A and also not to mislead people with wrong information.
Y. Patton Minister Home Govt. of Nagaland Dr. Chumben Murry Former Minister RalanthungYanthan Former Dy. Speaker Er. W. Kithan Former Parliamentary Secretary
