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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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1. Ins. by Act 39 of 1969, s. 3 (w.e.f. 1-1-1968).
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2. Subs. by Act 6 of 2025, s. 7, for "mined, quarried, excavated" (w.e.f. 15-4-2025).
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3. Ins. by s. 7,_ibid._ (w.e.f. 15-4-2025).
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4. Subs. by s. 7,_ibid._, for "crude oil, casing-head condensate or natural gas" (w.e.f. 15-4-2025).
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5. Subs. by s. 7, _ibid._, for "petroleum or natural gas, or both" (w.e.f. 15-4-2025).
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6. Subs. by Act 29 of 1998, s. 2, for sub-section _(4)_ (w.e.f. 3-9-1998).
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7. Subs. by Act 6 of 2025, s. 7, for "mining leases" (w.e.f. 15-4-2025).
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