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Published: 2000

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CAP. 225, PETROLEUM ACT - SUBSIDIARY LAW BELIZE

PETROLEUM ACT CHAPTER 225

REVISED EDITION 2003 SHOWING THE SUBSIDIARY LAWS AS AT 31ST OCTOBER, 2003

This is a revised edition of the Subsidiary Laws, prepared by the Law Revision Commissioner under the authority of the Law Revision Act, Chapter 3 of the Substantive Laws of Belize, Revised Edition 2000.

ARRANGEMENT OF SUBSIDIARY LAWS

BELIZE

PETROLEUM ACT CHAPTER 225

REVISED EDITION 2003 SHOWING THE SUBSIDIARY LAWS AS AT 31ST OCTOBER, 2003

This is a revised edition of the Subsidiary Laws, prepared by the Law Revision Commissioner under the authority of the Law Revision Act, Chapter 3 of the Substantive Laws of Belize, Revised Edition 2000.

This edition contains a consolidation of the following laws- Page

PETROLEUM ACT (COMMENCEMENT) ORDER 3 - 4

PETROLEUM REGULATIONS 5 - 39

OIL MINING REGULATIONS 40 - 59

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CHAPTER 225

PETROLEUM ACT (COMMENCEMENT ) ORDER

1. Short title.

2. Commencement of Chapter 225.

__________

ARRANGEMENT OF PARAGRAPHS

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CHAPTER 225

PETROLEUM ACT (COMMENCEMENT) ORDER

(Section 1)

[5th October, 1991.]

1. This Order may be cited as the

PETROLEUM ACT (COMMENCEMENT) ORDER.

2. In exercise of the powers conferred upon me by section 1 (2) of the Petroleum Act and all other powers thereunto me enabling, I, FLORENCIO MARIN, Minister of Natural Resources, do hereby appoint the 1st day of October, 1991 as the day on which the said Act shall come into force.

MADE this 1st day of October, 1991.

(FLORENCIO MARIN) Minister of Natural Resources

Minister responsible for petroleum affairs

128 of 1991 Act 8 of 1991.

Short title.

Commencement of Chapter 225.

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CHAPTER 225

PETROLEUM REGULATIONS

ARRANGEMENT OF REGULATIONS

1. Short title.

2. Interpretation.

3. Constitution of blocks.

4. Applications.

5. Additional Information to be furnished.

6. Selection criteria.

7. Rejection of applications.

8. Exploration operations.

9. Exploration period.

10. Development and production operations.

11. Development and production period.

12. Mandatory and voluntary relinquishment.

13. Transfers and assignment.

14. Work practices and directions.

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15. Environment and pollution control.

16. Drilling practices and abandonment.

17. Construction of pipelines and related facilities

18. Measurement.

19. Notice of Commencement.

20. Quarterly reports.

21. Annual work programme.

22. Annual report.

23. Periodic reports.

24. Records, accounts, etc. to be maintained.

25. Final reports.

26. Modification of duties.

27. Confidentiality.

28. Power of entry and inspection.

29. Fees and rentals Schedules.

30. Royalty Schedule.

31. Transitional. SCHEDULE

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CHAPTER 225

PETROLEUM REGULATIONS (Sections 15, 27,33, and 40)

[ 29th August, 1992.]

PART I

PRELIMINARY

1. These Regulations may be cited as the

PETROLEUM REGULATIONS

2. In these Regulations, unless the context otherwise requires -

“commercial discovery” means a discovery of petroleum which can be produced commercially, based on consideration of all pertinent technical and financial data according to generally accepted practices in the international petroleum industry;

“development and production operations” means operations for or in connection with the production of petroleum;

“drilling” means operations for or in connection with the perforation of the earth’s surface, whether the hole is vertical, inclined or horizontal, and includes all operations for preventing the hole from becoming filled by extraneous materials (including water) and the fitting of wellheads, or coring or logging, and any operations incidental thereto;

“effective date” means the date of the contract between the Government of Belize and the contractor;

112 of 1992. Act 8 of 1991.

Short title.

Interpretation.

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“exploration operations” means operations for or in connection with exploration for petroleum;

“field” means an area, as determined pursuant to the terms of a contract, in which a commercial discovery of petroleum has been made;

“Inspector of petroleum” means the Inspector of petroleum appointed under section 4 of the Act;

“well” means any opening in the ground made or being made by drilling or boring, or in any other manner, in connection with exploration operations or development and production operation, other than a seismic hole.

PART II

BLOCKS

3. (1) The Universal Transverse Mercatorial Zone 16, Clark 1886 spheroid, hereinafter referred to as UTM grid, shall be used to establish the blocks referred to in section 15 of the Petroleum Act.

(2) Each block shall be bounded by the lines of a UTM grid spaces at 10 kilometer intervals.

(3) Each block shall be divided into 25 sub-blocks by reference to a UTM grid spaced at 2 kilometer intervals.

(4) Where a portion of the UTM grid contains land inside Belize and land outside Belize, only that portion of the land in Belize shall constitute a block for purposes of these Regulations.

Constitution of blocks.

8 of 1991.

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PART III

BIDS

4. (1) Any individual or corporation intending to carry out activities relating to petroleum operations shall apply to the Minister in writing and every application shall include inter alia, the following information:

(a) the name, address and nationality of the applicant;

(b) where the applicant is a corporation:

(i) the applicant’s place of registration or incorporation, its principal place of business, its board of directors and senior management, the domicile and nationality of the members of the board of directors and its capital structure,

(ii) the form of organization of the applicant, including information concerning the bidder’s relationship with its parent company, if any, and other affiliated companies, and

(iii) the financial structure of the applicant and its parent company, if any, including annual reports, audited balance sheets and profit and loss statements for the past three years, and any reports which the applicant or its parent company may have filled with government agencies responsible for securities regulation during that period;

Applications.

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(c) the manner in which exploration and development activities would be financed if the application is successful and how performance would be guaranteed; and

(d) the applicant’s previous experience in petroleum exploration, development, production, refining and marketing.

(2) Where, an application is submitted by a group of two or more persons, the information referred to in sub-regulation (1) above shall be submitted for each person and the group shall designate one person as the negotiator.

(3) Where, following the submission of the information referred to in sub-regulation (1) above, but prior to the selection of the successful applicant, there has been any change in the information so submitted, the applicant shall forthwith inform the Minister, specifying all particulars of the change.

5. (1) Each application shall also include inter alia, the following:

(a) a description of the block or blocks applied for, and if the application is made in respect of more than one block, the priority assigned to each block;

(b) a detailed description of the exploration programme proposed for the block or blocks applied for;

(c) the minimum work and expenditure obligations to be undertaken during the exploration period;

(d) proposals with respect to the training of nationals

Additional Information to be furnished.

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of Belize and expenditures to be incurred therefor;

(e) proposals with respect to the sharing of net revenues or production between the applicant, and the Government; and

(f) such other matters as may be required by the Minister or which the applicant wishes the Minister to consider.

(2) Additional information on all matters referred to in the preceding sub-regulation shall be promptly supplied by the applicant, if so requested by the Minister at any time after the application has been received.

6. The following shall be the criteria for the evaluation of all applications and selection of applicants for negotiations:

(a) the technical competence and experience of the bidder with respect to petroleum operations;

(b) the financial resources available to the applicant to fulfil the petroleum exploration, development and production obligations under a contract;

(c) the extent to which the applicant will provide advanced technology and skills to the Belizean petroleum industry, and

(d) the specific contents of the application.

7. No rights of any kind shall be created in favour of any applicant by virtue of the submission of a bid proposal and the Minister reserves the right to accept or reject any or all of the application without assigning any reason therefor.

Selection criteria.

Rejection of application.

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PART IV

PETROLEUM OPERATIONS

8. The exploration operations shall include geological studies, geochemical studies, geophysical studies, aerial mapping, seismic surveys, investigations relating to the subsurface geology including structure test drilling, stratigraphic test drilling, drilling of exploration and appraisal wells, and other related activities such as surveying, drill site preparation and all work necessarily connected therewith, that is conducted in connection with petroleum exploration.

9. (1) The exploration period shall comprise –

(a) an initial period not exceeding two years in duration; and

(b) upon renewal in the prescribed manner, three further periods each not exceeding two years in duration:

Provided that each period may be further extended to permit the completion of a well which was commenced before the end of such period, and provided further that the final period may be further extended to appraise a discovery of petroleum. In the case of an extension to permit the appraisal of a discovery the extension shall apply to the discovery area only, the contractor shall perform such additional work as the Minister, after consultation with the contractor, may specify and the extension period shall be:

(i) one year on land;

(ii) up to two years, one year at a time, in waters of up to 200 meter in depth;

Exploration operations.

Exploration period.

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(iii) up to three years, one year at a time, in waters of more than 200 meter in depth;

(2) A contractor may, not later than ninety days prior to the expiration of the then current exploration period, apply to the Minister for a renewal of the initial period or of the first or subsequent renewal periods, referred to in sub-regulation (1) of this Regulation.

(3) An application for a renewal shall be made in writing to the Minister and shall be accompanied by:

(a) Particulars of the work carried out and the amount expended in the contract area during the initial period, or, where the application is for a second or subsequent extension to the initial period, during the preceding period of extension, up to and including the date of application; and

(b) proposals concerning the work to be carried out and the amount to be expended during the period of extension for which application is made; and

(c) such other matters as may be required under the contract or which the contractor may wish the Minister to consider.

(4) The Minister shall grant a renewal where –

(a) the contractor has fulfilled all his obligations under the contract for the then current period; and

(b) the proposals accompanying the application pursuant to sub-regulation (2) (b) in respect of work and expenditure for the period of extension are

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consistent with his commitments therefor under the contract.

10. (l) In the event that a discovery of petroleum is made in a contract area which the contractor considers to be commercial, the contractor shall, prior to the commencement of development and production operations, submit to the Minister the following:

(a) a description and map of the area containing such discovery which the contractor proposes to delineate as a field defined by reference to the UTM grid;

(b) a detailed report accompanied by supporting data and all analyses and interpretations thereof, which demonstrates that the area described in paragraph (a) above contains alone or in conjunction with other areas, as the case may be, a commercial discovery;

(c) full information as to the contractor’s current financial status, technical competence and experience;

(d) detailed proposals for the construction, establishment and operation of all facilities and services for and incidental to the development, extraction, production, storage, transportation, sale and other disposal of petroleum, and a proposed time table for the commencement of petroleum production;

(e) a detailed forecast of capital investment requirements, operating costs and sales revenues

Development and production operations.

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and the anticipated type and source of financing; and

(f) such other matters as may be required under the contract or as the Minister may reasonably require, including, without limitation, an environmental impact statement environmental protection plan.

(2) No development and production operations may be commenced by a contractor unless –

(a) the proposals of the contractor referred to in sub-regulation (1) above ensure the most efficient, beneficial and timely use of the petroleum resources concerned, consistent with accepted practices in the international petroleum industry;

(b) the contractor has adequate financial resources, technical and industrial competence and experience to effective development and production operations; and

(c) the contractor has fulfilled his obligations under the contract and is willing and able to comply with the terms and conditions of the contract thereafter.

11. (1) The development and production period shall start from the date of declaration of the commercial discovery. The initial term of development and production period for each field shall be for twenty five (25) years.

(2) A contractor may, not later than one (1) year prior to the expiration of the then current development and production period, apply to the Minister for an extension to the initial term referred to in sub-regulation (1) of this Regulation.

Development and production period.

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(3) An application for an extension shall be made in writing to the Minister and shall be accompanied by:

(a) a complete and up-to-date detailed report on the total production, sale and other disposal of petroleum from the field(s);

(b) a complete and up-to-date detailed report on the actual revenues generated, royalties, taxes and other fees paid to the Government;

(c) a detailed forecast of production rates, reserve estimates, economic feasibility, number of years for which the extension is applied for; and

(d) such other matters as may be required under the contract or as the Minister may reasonably require.

(4) The Minister shall grant an extension where –

(a) the contractor has fulfilled all his obligations under the current development and production period; and

(b) the proposals accompanying the application pursuant to sub-regulation (3) (c) of this Regulation are consistent with his commitments to continue production.

12. (1) A contractor shall, at such times and in such manner as may be provided in the contract, relinquish such part or parts of the contract area as provided therein and shall notify the Minister in writing not less than ninety days prior to the effective date of any such relinquishment of –

Mandatory and voluntary relinquishment.

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(a) the description of the part or parts of the contract area to be relinquished; and

(b) the description of the remaining contract area.

(2) A contractor may, at such times and in such manner as may be provided in the contract, relinquish all or any part of the contract area by giving to the Minister not less than ninety days’ notice and shall, in the case of a relinquishment of part or parts of the contract area, include –

(a) a description of the part or parts to be relinquished; and

(b) a description of the remaining contract area.

(3) The description of any area relinquished, or of the contract area remaining following such relinquishment, as referred to in sub-regulations (1) and (2) above shall be made by reference to the UTM grid.

(4) Any notice of relinquishment given pursuant to sub- regulations (1) or (2) above shall be accompanied by –

(a) full particulars of the petroleum operations carried out in the area to be relinquished;

(b) an undertaking by the contractor that, prior to the effective date of such relinquishment, he shall carry out all clean-up operations and render the area safe and in a condition which is in accordance with accepted practices in the international petroleum industry; and

(c) such other information as the Minister may reasonably require.

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(5) Where the entire contract area is relinquished pursuant to this regulation, the contract relating thereto shall terminate.

13. (1) An application for approval to assign, encumber or transfer any contract, or any rights or obligations arising out of a contract, shall be made in writing to the Minister, and every such application shall include –

(a) the name and nationality of the proposed assignee or transferee, and, in the case of a corporate assignee or transferee, the place of its incorporation and principal place of business;

(b) evidence of the proposed assignee’s or transferee’s technical and financial ability to assume and undertake the work obligations and other commitments set forth in the contract concerned;

(c) an unconditional written undertaking by the assignee or transferee to assume all the obligations assigned and transferred by the transferor or assignor under the contract; and

(d) such other particulars as the Minister may reasonably require.

(2) In addition to any information required under sub-regulation (1) above the contractor may be requested, before the application is disposed of, to submit further relevant information within a specified reasonable time, and where such further information is not supplied within the time specified, the application shall be deemed to have been withdrawn.

Transfers and assignments.

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(3) The assignment, encumbrance or transfer of any contract or interest therein shall not affect any liability of the transferor or assignor incurred before the date upon which such assignment, encumbrance or transfer takes effect, nor, unless a contract otherwise provides, shall it relieve the transferor or assignor from liability for the performance by the transferee or assignee of the obligations undertaken by the transferor or assignor at the time the contract was entered into.

PART V

WORK PRACTICES

14. (1) Every contractor shall, in carrying out petroleum operations, always act in accordance with generally accepted practices in the international petroleum industry.

(2) Where the Minister considers that a contractor has not acted in accordance with such practices and in particular, with the conservation and work practices as provided for in section 24 of the Act, he may notify such contractor in writing accordingly and require him to show cause, within such reasonable time as the Minister shall specify, why he has failed to act in accordance with such practices.

(3) Where, within the time specified in any notice issued under sub-regulation (2) above, the contractor fails to satisfy the Minister that he has acted in accordance with such practices or that his failure to so act is justified, the Minister may direct the contractor to take such steps as may be necessary to ensure compliance therewith.

(4) Any contractor who fails to comply with a direction given under sub-regulation (3) above, commits an offence and is liable on summary conviction to a fine not exceeding US$5,000.

Work practices and directions.

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(5) Where proceedings are instituted for an offence under sub-regulation (4) above, it shall be a sufficient defence if the contractor satisfies the court that he forthwith took all reasonable steps in accordance with accepted practices in the international petroleum industry to comply with such direction

(6) Where a contractor fails to comply with a direction to him under sub-regulation (3) above, the Minister may cause to be done all or any of the things required by such direction.

(7) Any cost or expenses reasonably incurred by the Minister under sub-regulation (6) above shall be a debt due to the Government by the contractor to whom the direction was given and shall be paid into the Consolidated Fund.

(8) Nothing in this regulation or in any direction given thereunder shall be construed as requiring any contractor to do anything which is not, or to refrain from doing anything which is, in accordance with generally accepted practices in the international petroleum industry.

15. (1) The Minister shall appoint an environmental pollution control board to ensure that all petroleum operations comply with the requirements of environmental standards and the relevant laws of Belize at an appropriate time as he deems fit.

(2) The Minister may provide in a contract such reasonable considerations for establishment of a common fund to which the contractor(s) would contribute, to be held in trust and managed for the sole purpose of indemnification against any or all environmental damage(s) caused during petroleum operations.

(3) Nothing contained in sub-regulation (2) above shall be construed to relieve a contractor from his obligations of indemnification as set out in his contract.

Environment and pollution control.

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16. (1) Every contractor shall ensure that his well design and conduct of drilling operations, including his casing, cementing, well spacing, plugging operations, etc. are in accordance with generally accepted practices in the international petroleum industry.

(2) Every well shall be identified by a geographic name, number and geographic co-ordinates which shall be shown on maps, plans and similar records which a contractor is required to keep and the Minister shall at once be notified in writing of any change of the name of a well.

(3) Before commencing any work on or drilling any well, or recommencing work on any well on which work has been discontinued for more than six months, a contractor shall give the Minister seven days’ notice in writing of his intention and such notice shall include:

(a) the official name and number of the well;

(b) a description of its precise location by reference to geographical co-ordinates;

(c) a detailed report on the drilling technique to be employed, an estimate of the time to be taken and depth objective, the material to be used, and the safety measures to be employed, in the drilling of the well; and

(d) a summary of the geological and geophysical data, and any interpretations thereof, upon which the contractor made his decision to drill the well in the particular location.

(4) Where any work or drilling relating to any well is discontinued for a period exceeding thirty days, a contractor shall notify the Minister in writing to that effect.

Drilling practices and abandonment.

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(5) Before recommencing any work on or drilling, with respect to any well on which work has been discontinued for more than thirty days but for less than six months, a contractor shall give forty-eight hours notice in writing of his intention to do so.

(6) Except with the approval of the Minister, no contractor shall drill a well from any surface area within the contract area which is less than five hundred meters from a boundary of such contract area.

(7) No well shall be drilled from within a contract area through any vertical boundary of such contract area.

(8) A directional well drilled under a contract area from a surface location on nearby land not within such contract area shall be deemed to have the same effect for all purposes of the Act as a well drilled from a surface location within such contract area and, in such circumstances, the production of petroleum from the contract area through a directional well surfaced on nearby land, or drilling or reworking of any such directional well shall be considered production, drilling or reworking operations, as the case may be, in the contract area.

(9) Nothing contained in sub-regulation (8) above shall be construed to grant to a contractor any leasehold interest, license, easement, right-of-way or other right which such contractor is required to acquire under the Act or any other written law.

(10) Before abandoning any well, the contractor shall give in the case of a producing well, not less than thirty days, and, in the case of any other well, not less than twenty-four hours’ written notice to the Minister of his intention to abandon and such notice shall be accompanied by a satisfactory programme for the abandonment and plugging of the well identified in the notice.

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(11) Subject to the terms and conditions of a contract, a contractor may, upon the expiration of the relevant period of notice or upon receipt by the contractor of the written approval of the Minister of the programme submitted pursuant to the preceding sub-regulation, whichever is earlier, commence the abandonment operations in relation to such well:

Provided that in all cases –

(i) the contractor shall undertake to securely plug such well to prevent pollution and possible damage to the deposit, and shall, except as the Minister may otherwise direct or his contract may otherwise provide, remove all equipment materials and facilities relating thereto;

(ii) cemented strings or other forms of casing shall not be withdrawn without the prior written approval of the Minister; and

(iii) the contractor shall permit a representative of the Government to observe such operations.

17. (1) Each contractor shall, prior to commencing the construction, alteration or operation of a pipeline, pumping station, storage facility or any other related facilities for the conveyance or storage of petroleum from a contract area, apply in writing to the Minister for authorization.

(2) The written application submitted pursuant to sub-regulation (1) above shall be accompanied by particulars of -

(a) the proposed design and construction of the pipeline, pumping station, storage facility or other related

Construction of pipelines and related facilities.

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facilities;

(b) the proposed work programme and budget and the technical and financial resources available to the contractor for the construction, alteration or operation of the pipeline, pumping station, storage facility or any other related facilities; and

(c) the proposed route to be followed by the pipeline and the location of any pumping station, storage facility or other related facilities to be constructed, altered or operated.

(3) Subject to any conditions which may have been agreed in a contract and the provisions of sub-regulation (4) below and upon receipt of the Minister’s written approval, a contractor may commence the construction, alteration or operation of the pipeline, pumping station, storage facility or related facilities.

(4) Nothing contained in this regulation is intended, or shall be construed, to grant any leasehold interest, license, easement, right-of-way or other right which the contractor is required to acquire lawfully under the Act or any other written law.

18. (1) Each contractor shall supply, operate and maintain equipment for measuring the volume and quality of any petroleum produced and saved pursuant to his contract, including gravity, density, temperature and pressure measuring devices and any other devices that may be required, and all such equipment and devices shall, prior to their installation or usage be approved by the Inspector and following such installation or usage shall not be replaced or altered without the prior approval of the Inspector.

(2) Measurement equipment and devices shall be available for inspection and testing at all reasonable times by the Inspector or any person

Measurement.

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duly authorized by him:

Provided that any such inspection or testing shall not interfere with the normal operation of the facilities involved.

(3) Each contractor shall measure the volume and quality of the petroleum produced and saved pursuant to his contract, consistent with generally accepted practices in the international petroleum industry, with the frequency and according to procedures which shall be approved by the Minister.

(4) Each contractor shall give to the Minister timely notice of his intention to conduct measuring operations and the Minister shall have the right to be present at and supervise, either directly or through authorized persons, such operations.

(5) Where it is determined, following an inspection or test carried out by an authorized person, that the equipment, devices or procedures used for measurement are inaccurate and exceed the permissible tolerances approved under sub-regulation (1) of this Regulation which shall be established by prior approval to the installation and usage of such equipment, devices or procedures, and such determination is verified by an independent surveyor acceptable to the Minister and the contractor, such inaccuracy shall be deemed to have existed for one-half of the period since the last such inspection or test, unless it is proved that the inaccuracy has been in existence for a longer or shorter period, and appropriate adjustments covering such period shall be made within thirty days from date of such determination.

PART VI

RETURNS, RECORDS, PLANS, ETC.

19. (1) Every contractor shall, prior to the commencement of petroleum operations, or recommencement of petroleum operations which have been discontinued for a period exceeding ninety days, give the Minister not less than

Notice of Commencement.

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forty-eight hours’ notice in writing of his intention to commence or recommence such operations.

(2) Any notice given pursuant to sub-regulation (1) above shall include the name and address of the local resident manager under whose supervision such operations are to be carried out.

20. (1) Every contractor shall submit to the Inspector, on or before the 30th day of January, April, July and October, a report in respect of the preceding quarter containing or showing –

(a) a description of the results of all petroleum operations carried out by the contractor;

(b) in the case of exploration operations, a summary of all geological and geophysical work carried out by the contractor, including a summary of all drilling activities;

(c) a list of maps, reports and other geological and geophysical data prepared by, or on behalf of, the contractor in respect of the period concerned;

(d) in the case development and production operations, the gross volume and quality of all petroleum produced, saved, sold or otherwise disposed of from his contract area, the consideration accrued or received the quantity disposed of and identity of the person to whom such quantity was disposed, and the balance of stocks on hand at the end of the period concerned;

(e) the average number of persons employed in Belize, in terms of nationals of Belize and expatriate

Quarterly reports.

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personnel, in connection with the petroleum operations carried out;

(f) the sums disbursed in Belize in respect of wages, overtime, allowances or other emoluments or benefits;

(g) the sums disbursed in Belize and externally, for the purchase of fuels, stores, foodstuffs or other materials, equipment or, services;

(h) the total operating and capital expenditures incurred, both in Belize and externally, in respect of the petroleum operations carried out, determined in accordance with his contract; and

(i) any other relevant information which may be required by his contract or which the Minister may reasonably require.

(2) With respect to paragraphs (f), (g) and (h) of sub-regulation (1) above, when the precise amount is not ascertainable by the

date upon which the report is due, figures which are the best possible approximation shall be given.

21. Every contractor shall submit to the Minister, on the anniversary of the effective date of the contract of each year, a complete programme of work to be carried out during the following year, together with a detailed budget of the expenditures to be incurred.

22. On or before the 31st day of March of each year, every contractor shall submit to the Minister an annual report in respect of the preceding year containing –

Annual work programme.

Annual report.

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(a) the information required by sub-regulation (1) (a) to (i) of Regulation 20 for the entire year;

(b) estimates (if available) of economically recoverable reserves of crude oil and natural gas at the end of the year concerned; and

(c) (i) the boundaries of the contract area,

(ii) the total surface area of the contract area in acres,

(iii) the location of any wells drilled by the contractor during that year, and

(iv) the location or routing of any platforms, pipelines and similar permanent installations.

23. (1) During the conduct of drilling operations, every contractor shall be required to submit daily drilling reports to the Inspector describing the progress and results of such operations.

(2) Every contractor shall within one hundred and eighty days of the completion of any survey, test or drilling operations, or, in the case of data that cannot reasonably be obtained or compiled in that period, as soon as possible thereafter, submit to the Inspector the following data including any interpretations thereof:

(a) geological data including –

(i) surface/subsurface maps of the area explored,

Periodic reports.

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(ii) stratigraphic data, including measured stratigraphic surface sections, lithological groups, information relating to the porosity and the permeability of petroleum, bearing zones,

(iii) lithologic and/or paleontologic samples, and

(iv) summary reports of the geological data including references to the survey and processing techniques utilized;

(b) geophysical data including –

(i) seismic data, including –

(A) shot point and elevation maps,

(B) interpretive contour maps on critical or outstanding mapping horizons,

(C) seismic record sections, and

(D) summary reports of the seismic data including references to the survey and processing techniques utilized,

(E) copy of seismic tapes,

(ii) gravimetric data, including-

(A) observed gravity value contour maps and any derivative maps,

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(B) gravimetric survey notes, and

(C) summary reports of the gravimetric data including references to the survey and processing techniques utilized,

(D) recorded gravity values,

(iii) magnetic data, including –

(A) station and/or flight line base maps

(B) total intensity value maps and any derivative maps, and

(C) summary reports of the magnetic data including references to the survey and processing techniques utilized,

(D) recorded magnetic values;

(c) completion reports including –

(i) engineering data,

(ii) geological data,

(iii) drill stem/production test results,

(iv) all wireline logs (at recommended scales of 1:1000, 1:500 and 1:200),

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(v) samples and sample descriptions, and

(vi) core samples, core descriptions and laboratory analyses of the same; and

(d) such other data as the Minister may, by written notice to the contractor, reasonably require him to so submit;

(e) confidentiality of the data acquired during the terms of the contract and the time limit on the contractor to vest all the original data to the State of Belize.

24. (1) Every contractor shall, in respect of his contract area, keep at his registered office in Belize, accurate records containing full particulars of the following matters:

(a) the drilling, operation, deepening, plugging or abandonment of wells;

(b) the strata and subsoil through which wells are drilled;

(c) the casing inserted in wells and any alteration to such casing;

(d) any petroleum, water and other economic minerals encountered;

(e) the areas in which any geological or geophysical work has been carried out;

(f) accurate geological maps and plans, geophysical records representative geological samples and test

Records, accounts, etc. to be maintained.

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results, and all interpretations thereof, and

(g) such other matters as may be provided in his contract or as the Minister may reasonably require by notice in writing to the contractor.

(2) Every contractor shall keep at his registered office in Belize accurate accounts containing full particulars of the following:

(a) the gross quantity of any crude oil and natural gas produced and saved from the contract area;

(b) the grades and gravity of any crude oil produced and the composition of any natural gas produced;

(c) any quantities of crude oil, natural gas and sulphur, in any form, or any other minerals, gases, liquids or solids disposed of by way of sale or otherwise, the consideration received, the quantity disposed of and the name and address of the person or company to whom any such quantity was disposed;

(d) the quantity of crude oil, natural gas and other liquids or gases injected into a formation;

(e) the quantity of crude oil and natural gas consumed for drilling and other development and production operations (other than quantities reported under paragraph (d) above and consumed in pumping to field storage, refineries in Belize or the point of export;

(f) the quantity of crude oil refined by or for the

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contractor in Belize;

(g) the quantity of natural gas treated in Belize by him or on his behalf for the removal of liquids and liquified petroleum gases and the quantity of butane, propane and any other liquids, gases or any other solids obtained;

(h) the quantity of natural gas flared; and

(i) such further information as may be required by his contract or as the Minister may reasonably require.

25. Prior to the termination of a contract, or upon the relinquishment of any part of a contract area, the contractor shall forthwith submit to the Minister, in relation to the contract area or part thereof, copies of –

(a) all records including technical and financial which the contractor maintained pursuant to this Part;

(b) all plans or maps of such area which were prepared by or on behalf of the contractor;

(c) all tapes, diagrams, profiles and charts which were so prepared; and

(d) such other documents or materials as the Minister may, by notice given to the contractor, reasonably require the contractor to so submit.

26. The Minister may, on application made to him in writing by a contractor, by notice in writing, dispense with or modify any of the requirements of regulations 19 to 24 to the extent and on such conditions as may be stated in the notice.

Final reports.

Modification of duties.

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27. (1) All returns, reports, plans and other information submitted under these Regulations shall be treated as confidential by the Government and shall not, unless otherwise provided in a contract, be disclosed to third persons prior to the relinquishment of the area to which they relate or prior to the end of the exploration period if such area is not sooner relinquished:

Provided that –

(a) any surface geological maps and interpretations may be utilized at any time by the Government departments concerned for incorporation into official maps;

(b) annual statistical information may be published at any time by the Government in a form which does not disclose the operations of any particular contractor; and

(c) the Government may make such returns, reports, plans, data and other information available at any time to professional consultants, legal counsel, accountants, underwriters, lenders and such Government entities as may need to be made aware thereof.

(2) No contractor shall, unless otherwise provided in a contract, disclose any returns, reports, plans, data, records and other information compiled, received, maintained or submitted pursuant to these Regulations or the terms and conditions of contract without the prior written approval of the Minister

Provided that –

(a) a contractor may make such returns, reports,

Confidentiality.

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plans, records and other information available, without the approval of the Minister, to professional consultants, legal counsel, accountants, underwriters, lenders, companies in which a contractor maintains a controlling interest and such Government entities as may need to be made aware thereof or have the right to require such disclosure; and

(b) any disclosure made by a contractor to third parties pursuant to this sub-regulation shall only be made on terms which ensure that the information so disclosed is treated as confidential by the recipient.

28. (1) Any authorized person may at all reasonable times –

(a) enter any area, building, structure, vehicle, vessel or aircraft or examine or have examined by a qualified person any machinery or equipment, which has been, is being or is be, used in connection with petroleum operations;

(b) take or remove samples of petroleum, water or others substances for the purpose of testing or analysis;

(c) inspect, make copies of or take extracts from, any document, book or data relating to petroleum operations; and

(d) make such examinations and enquiries and carry out such functions as may be necessary to ensure that the provision of the Act or the terms and conditions of a contract are being complied with.

Power of entry and inspection.

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(2) Where there is a person present who is or appears to be in charge of the area, building, structure, vehicle, vessel, aircraft, machinery, equipment or matter or thing in respect of which any of the powers under sub-regulation (1) above are to be exercised, any authorized person shall, before exercising any such power, identify himself to that first mentioned person and shall, if so requested by that person, produce evidence of his authority.

(3) In exercising his power under sub-regulation (1) above, an authorized person shall not unduly interfere with any petroleum operations being carried out.

(4) Any person who is an occupier or person in charge of an area, building or structure, or the person in charge of any vehicle, vessel, aircraft, machinery, equipment or matter or thing referred to in sub-regulation (1) above shall provide the authorized person with all reasonable facilities and assistance for the effective exercise of his functions under these regulations.

PART VII

FINANCIAL PROVISIONS

29. (1) The fees and surface rentals set out in the Schedule shall be payable in respect of the matters specified therein.

(2) All annual fees and surface rentals payable under these regulations shall be paid into the Consolidated Fund of Belize in advance and without demand.

30. (1) A royalty or production payment shall be payable at the rates prescribed in Part II of the Schedule in respect of the annual gross production of –

(a) crude oil produced and saved in each year from a contract area, and

Fees and rentals Schedule.

Royalty Schedule.

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(b) natural gas produced, saved and sold in each year from a contract area.

(2) The royalty due shall be payable within thirty days of the end of each quarter.

31. (1) Subject to sub-paragraph (2) below the Petroleum (Production) Oil Mining Regulations are hereby revoked.

(2) Notwithstanding sub-paragraph (1) above where any person holds any licence granted or renewed under the Petroleum (Production) Act 1937 to the extent that there is an inconsistency between the provisions of the Petroleum (Production) Oil Mining Regulations and these Regulations, the provisions of the Petroleum (Production) Oil Mining Regulations shall prevail.

MADE by the Minister of Natural Resources this 18th August, 1992.

(FLORENCIO MARIN) Minister of Natural Resources

____________

Transitional.

CAP. 184 R.E. 1980 - 1990.

Sub-leg. Vol. 111 P.R. 1613

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SCHEDULE

[Regulations 29 and 30]

Fees and Surface Rentals

1. Fees for inspection of the Register: US$

- for general research and examination of the Register 5.00

- for the supply of a copy of any entry on the Register 10.00

2. Surface rentals:

- annual surface rentals for a contract area during the exploration period, per acre:

Years 1 and 2 $ 0.10

Years 3 and 4 0.15

Years 5 and 6 0.20

Years 7 and 8 0.40

- annual surface rentals for the surface area of a field, per acre: $5.00

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3. Administrative fees:

- application fee $100.00

- annual administration fee $10,000.00

PART II

Royalty or Production Payment

1. Crude Oil:

At a rate of not less than 7.5% (seven and one-half percent) of the well head value.

2. Natural Gas:

At a rate of not less than 5% (five percent) of the wellhead value.

Note:

“Wellhead value” for the purpose of this Part means the net realized price received by a contractor at the point of export or other agreed delivery point from the sale or other disposition of crude oil or natural gas, as the case may be, less such costs as the Minister may reasonably allow in respect of handling and transportation from wellhead to such point of export of other agreed point of delivery.

__________

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CHAPTER 225

OIL MINING REGULATIONS

ARRANGEMENT OF REGULATIONS

1. Short title.

2. Interpretation.

3. Persons by whom application may be made.

4. Manner in which application may be made.

5. Separate application to be made for each area.

6. Grant of more than one licence or lease to the same person.

7. Licence or lease not assignable without consent.

8. Method of making application for assignment.

9. Reciprocity.

10. Application by an alien or a company incorporated outside the Commonwealth.

11. Lapse of right to licence or lease.

12. Publication.

13. Model clauses.

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14. Bond.

15. Licence or lease over land and sea or sea.

16. Minister may grant oil exploration licence.

17. Area.

18. Period.

19. Renewal.

20. Minister may grant oil prospecting licence.

21. Size of area.

22. Comprehensive oil prospecting licence.

23. Shape of area.

24. Period.

25. Renewal.

26. Working obligations.

27. Yearly rent.

28. Royalties.

29. Minister may grant oil mining lease.

30. Size of area.

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31. Comprehensive oil mining lease.

32. Shape of area.

33. Survey at expense of applicant.

34. Period.

35. Yearly rent.

FIRST SCHEDULE

SECOND SCHEDULE

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CHAPTER 225

OIL MINING REGULATIONS1

(Section 41)

PART I

GENERAL

1. These Regulations may be cited as the

OIL MINING REGULATIONS

2. In these Regulations and in every licence and lease issued hereunder the following terms shall respectively have the meanings assigned to them unless inconsistent with the context, or unless expressly varied in such licence or lease:

“alienated lands” means lands the oil rights in which are vested in the Government but the surface of which has been alienated at any time whether such surface has revested in the Government or not;

“casinghead petroleum spirit” means any liquid hydrocarbons obtained from natural gas (before the crude oil from which it is derived has been measured for royalty) by separation or by any chemical or physical process;

“Commonwealth” includes British protectorates and protected states and any territory in respect of which a mandate has been accepted by Her Majesty and is being exercised by the government of any part of Her Majesty’s dominions;

______________ 1 These Regulations were made under the Petroleum Production Act Chapter 184 of the Laws of Belize, Revised Edition 1980-1990, and were revoked by Section 41 of the Petroleum Act, Chapter 225 of the Substantive Laws of Belize with savings. See also Regulation 31

of the Petroleum Regulations.

Ch. 126. Ch. 184. 38/1964. 29/1965. 52/1978. 114/1989.

Short title.

Interpretation.

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“Commonwealth citizen” includes a person under Her Majesty’s protection;

“crude oil” means oil in its natural state before the same has been refined or otherwise treated but excluding water and foreign substances;

“lessee” means a person to whom a lease under these Regulations is granted, his successors in title and the persons deriving title under him;

“licensee” means a person to whom a licence under these Regulations is granted, his successors in title and the persons deriving title under him;

“national lands” includes all lands, inland waters, caves, reefs and submarine areas now being or hereafter becoming part of Belize, but shall not include alienated land as defined herein;

“natural gas” means gas obtained from boreholes and wells and consisting primarily of hydrocarbons;

“person” includes a company.

“petroleum” includes any mineral oil or relative hydrocarbon and natural gas existing in its natural condition in strata, but does not include coal or bituminous shales or other stratified deposits from which oil can be extracted by destructive distillation;

3. Any person may apply in accordance with the Regulations for-

(a) an oil exploration licence;

(b) an oil prospecting licence;

(c) an oil mining lease, in respect of national lands or of alienated lands or of both.

Persons by whom application may be made.

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4. (1) Every application shall be made in writing on the form set out in the First Schedule hereto addressed to the Minister.

(2) The application shall state –

(a) in the case of an application by an individual, his address, nationality and occupation;

(b) in the case of an application by a company, the nature of, and the principal place of business of the company (and if the principal place of business is outside Belize, the name and address of a duly authorised agent in Belize), the names and nationality of the directors thereof, and the names and holdings of the principal shareholders.

(3) An application by an alien or a company incorporated outside the Commonwealth shall contain, in addition to the matters specified in paragraph (2) of this regulation, full particulars of the company to be incorporated in Belize or in some other part of the Commonwealth or elsewhere in accordance with regulation 10 of these Regulations for the purpose of receiving the grant of and exploiting any licence or lease which may be granted in pursuance of the application.

(4) With the application there shall be sent the prescribed fee, that is to say -

for an oil exploration licence fifty dollars;

for an oil prospecting licence one hundred dollars;

for an oil mining lease one hundred and fifty dollars.

Manner in which application may be made.

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But if the application shall be refused the Minister will repay to the applicant one half of the fee thus paid.

(5) To the application there shall be attached two copies of a plan upon which shall be delineated the boundaries of the area in respect of which a licence or lease is applied for.

(6) The instruments referred to in the Second Schedule hereto (which are not published with these Regulations) shall at all reasonable times be made available for inspection at the Minister’s Office.

(7) The applicant shall, with his application, furnish evidence as to his financial and technical qualifications, and as to his ability to comply with any terms and conditions contained in the model clauses referred to in the Second Schedule to these Regulations relating to the licence or lease for which application is made, and in the case of an application by an alien or a company incorporated outside the Commonwealth, the like evidence in relation to the company to be incorporated in accordance with regulation 10 of these Regulations in Belize or in some other part of the Commonwealth for the purpose of receiving the grant of and exploiting any licence or lease which may be granted in pursuance of the application. The applicant shall forthwith, upon request by the Minister furnish further evidence relating to such matters, and if such further evidence shall not have been furnished to the satisfaction of the Minister within three months of the request therefor the application shall, unless the Minister otherwise determines, be deemed void.

(8) All information comprised in, or furnished to the Minister in pursuance of an application made in accordance with these Regulations shall be treated by the Minister as confidential.

5. Where an applicant requires a licence or lease for two or more separate areas, a separate application shall be made in respect of each such area.

Separate application to be made for each area.

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6. Nothing in these Regulations shall prevent more than one licence or lease being granted to the same person.

7. A licence or lease shall not be assigned without the previous consent in writing of the Minister.

8. An application by a licensee or lessee for the assignment of a licence or lease shall be made in writing addressed to the Minister and shall be accompanied by a fee of fifty dollars. With the application the applicant shall furnish the like particulars in respect of the proposed assignee as are required to be furnished in the case of applicants for licences and leases under regulation 4 of these Regulations.

9. A licence or lease shall not be granted to or held by any person who is or becomes controlled directly or indirectly by a national of or by a company incorporated in any country the laws and customs of which do not permit Commonwealth citizens or companies incorporated in the Commonwealth or companies incorporated in that country controlled directly or indirectly by Commonwealth citizens or companies incorporated in the Commonwealth to acquire hold and operate petroleum concessions on conditions which in the opinion of the Minister are reasonably comparable with the conditions upon which such rights are granted to nationals of that country with the addition of conditions corresponding to those imposed by Clause 12 (Special Clause) and Clause 13 (Reciprocity) of the Model Clauses referred to in Part I of the Second Schedule hereto.

10. In the case of an application for a licence or a lease by an alien or a company incorporated outside the Commonwealth or in the case of an application by a licensee or lessee for the Minister’s consent to the assignment of a licence or lease to an alien or a company incorporated outside the Commonwealth the Minister may require a company to be incorporated in Belize or in some other

Grant of more than one licence or lease to the same person.

Licence or lease not assignable without consent.

Method of making application for assignment.

Reciprocity. 29/1965.

Application by an alien or a company incorporated outside the Commonwealth.

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part of the Commonwealth for the purpose of receiving and exploiting any such licence or lease.

11. If a licence or lease is not executed within six months after approval of the application by the Minister the right of the applicant to such licence or lease shall be deemed to have lapsed, unless the Minister considers that the delay is not attributable to the fault of the applicant.

12. The Minister shall, as soon as may be after the grant, surrender, determination or assignment of any licence or lease under these Regulations, publish notice of the fact in the Gazette stating the name of the licensee or lessee or assignee and the situation of the area concerned.

13. Every oil exploration licence and oil prospecting licence and oil mining lease shall incorporate such of the model clauses respectively referred to in Parts I, II and III of the Second Schedule hereto as shall be appropriate, subject to such modifications and exclusions as the Minister thinks fit, and such additional clauses covering ancillary matters as the Minister thinks necessary.

14. Before the grant of any such licence or lease a bond shall be executed in the form appropriate to such licence or lease and set out in the Second Schedule hereto.

15. In the case of a licence or lease over land and sea or sea only, the following provisions shall apply:

(a) the licensee or lessee shall adopt all practical precautions to prevent the pollution of coastal water by oil, mud or any other fluid or substance which might contaminate the sea water or shore line or which might cause harm or destruction to marine life;

Lapse of right to licence or lease.

Publication.

Model clauses.

Bond.

Licence or lease over land and sea or sea.

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(b) the licensee or lessee shall at all times maintain and keep in good repair, working order and condition and if so required by the Minister illuminate between the hours of sunset and sunrise, in a manner satisfactory to the Harbour Master, all derricks, piers, survey marks or any other installations erected in the area under licence or lease;

(c) the licence or lease shall not confer any surface rights to the foreshore lying between high water mark and low water mark at ordinary spring tides and no use shall be made thereof unless and until the approval of the Minister, which shall not be unreasonably withheld, has been first obtained.

PART II

OIL EXPLORATION LICENCES

16. The Minister may at his discretion grant an oil exploration licence over the lands specified therein subject to the payment by the licensee of a fee of two hundred and fifty dollars for every one thousand square miles comprised in the licensed area:

Provided that the fee payable shall not be less than five hundred dollars and shall not exceed five thousand dollars.

17. An oil exploration licence shall not be granted in respect of any area of less than eight square miles.

18. The initial term of an oil exploration licence shall not exceed two years.

Minister may grant oil exploration licence.

Area.

Period.

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19. The Minister may at his discretion, on application made by the licensee on two months’ notice in writing, renew any oil exploration licence for periods not exceeding twelve months in respect of the whole of the licensed area or any part thereof which complies with regulation 17 of these Regulations:

Provided that the total period of validity of the licence shall not exceed four years from the grant to the licensee of the first licence.

PART III

OIL PROSPECTING LICENCES

20. The Minister may grant an oil prospecting licence over the lands specified therein whether or not the applicant has been the holder of an oil exploration licence under these Regulations. Subject to the rights of an applicant who is the holder of a valid oil exploration licence, the grant of an oil prospecting licence shall be at the discretion of the Minister.

21. An oil prospecting licence shall not be granted in respect of any area of –

(a) more than two hundred square miles; or

(b) less than eight square miles; save in cases where special exemption is granted by the Minister.

22. Subject to the provisions of regulation 5 of these Regulations, the Minister may grant one comprehensive oil prospecting licence in respect of two or more separate areas provided they are situated reasonably close together and provided further that the sum of such areas shall not exceed two hundred square miles.

23. Each separate area in respect of which an oil prospecting licence is granted shall be, so far as possible, compact and shall either be limited by well

Renewal.

Minister may grant oil prospecting licence.

Size of area.

Comprehensive oil prospecting licence.

Shape of area.

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marked permanent physical boundaries or be bounded by straight lines. The greatest length of any area for which an oil prospecting licence is granted shall not be more than three times the average width in the case of an area of eight square miles, or more than four and one half times the average width in the case of an area of two hundred square miles. In the case of an area of intermediate size, such maximum ratio shall vary between three and four and one half in proportion to the size of the area.

24. The initial term of an oil prospecting licence shall not exceed four years.

25. (1) The Minister may from time to time renew an oil prospecting licence for further terms of twelve months.

(2) Any application for renewal shall be made in writing at least three months before the licence is due to expire and may be in respect of the whole or any part or parts of the licensed area provided that such part or parts comply with the provisions of regulations 21 and 23 of these Regulations.

26. The licensee shall in respect of the area or areas covered by each licence carry out with due diligence such scheme of prospecting, including any geological and/or geophysical survey and/or programme of test drilling, as shall be agreed between the Commissioner of Lands and Surveys and the licensee:

Provided that in the event of more than one oil prospecting licence being granted to the same licensee a programme of test drilling covering two or more licensed areas where the geological objective is the same for the purpose of determining whether commercial deposits of petroleum exist within those areas shall be agreed between the Commissioner of Lands and Surveys and the licensee.

27. The licensee shall pay annually in advance a yearly rent at the following rates:

(a) in respect of each year of the initial term of an oil prospecting licence, ten cents, and

Period.

Renewal. 38/1964.

Working obligations.

Yearly rent.

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(b) in respect of each renewal of a term of an oil prospecting licence, twenty cents

for each acre comprised in the licensed area:

Provided that the Minister may from time to time vary the rates set out in the foregoing provisions of this regulation:

Provided also that where a licensee has not by the end of its fourth year of licence drilled according to the terms and conditions stipulated in its licence or other agreement entered into with the Government, or to the depth mutually agreed upon by both parties in order to reach either the geological conditions which indicate the presence, or alternatively, exclude the presence of petroleum in commercial quantities in respect of the lands under licence, the Minister may increase the annual rental to be paid by such licensee to such sum as he thinks fit but not exceeding twenty dollars per acre.

28. (1) The licensee shall pay the royalties hereunder specified-

(a) on crude oil and casing head petroleum spirit won and saved, an amount equal to 12 1/2% of the value of the oil produced from on-land or in marine waters of depth not exceeding twenty metres; 10% of the value of the oil produced from location in marine waters of depths between twenty and two hundred metres, and 7 1/2% of the value of the oil produced from location in marine waters of depths greater than two hundred metres.

(b) on the natural gas, 12 1/2% of the value at the well head in the site of production in land or in marine waters of depth not exceeding twenty metres; 10% of the value at the well head in the site of production in marine waters of depths

Royalties. 52/1978. 114/1989.

52/1978.

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between twenty and two hundred metres, and 7½ % of the value at the well head in the site of production in marine waters of depths greater than two hundred metres. The depths defined in (a) and (b) are with reference to the Low Tide level:

Provided that the Minister may from time to time by Order published in the Gazette, vary the rates set out in the foregoing provisions of this paragraph.

(2) The said royalties shall be assessed and paid in the manner provided in Part II of the Second Schedule hereto.

PART IV

OIL MINING LEASES

29. The Minister may grant an oil mining lease over the lands specified therein. An oil mining lease shall only be granted in respect of –

(a) an area which has previously been included either in an oil prospecting licence granted under these Regulations to the applicant or in an oil mining lease granted to a former lessee; or

(b) an additional area adjoining that already held under an oil mining lease by the applicant.

30. An oil mining lease shall not be granted in respect of any area of –

(a) more than one hundred square miles; or

(b) less than four square miles, save in cases where special exemption is granted by the Minister.

Minister may grant oil mining lease.

Size of area.

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31. Subject to the provisions of regulation 5 of these Regulations, the Minister may grant a comprehensive oil mining lease in respect of two or more separate areas provided they are situated on the same geological structure or cover a group of geologically similar and related structures and provided also that the sum of such areas does not exceed one hundred square miles.

32. Each separate area in respect of which an oil mining lease is granted shall either be limited by well marked permanent physical boundaries or be laid out in a block or blocks bounded by straight lines between well defined points. The greatest length of any area for which an oil mining lease is granted shall not be more than three times the average width in the case of an area of four square miles or more than five times the average width in the case of an area of one hundred square miles. In the case of an area of intermediate size, such maximum ratio shall vary between three and five in proportion to the size of the area.

33. Before an oil mining lease is granted by the Minister the applicant, if so required by the Minister, shall at his own expense cause a topographical survey of the lands specified therein to be made to a scale normally required for oil mining purposes.

34. The initial term of an oil mining lease shall not exceed thirty years, but the lease shall contain a clause permitting renewal for a further period not exceeding thirty years.

35. The lessee shall pay annually in advance a yearly rent at the following rates for each acre or part of an acre comprised in the leased area:

Per Acre Per Annum

In respect of the 1st year of the term of an oil mining lease 1.00

In respect of the 2nd year of the term of an oil mining lease 1.40

Comprehensive oil mining lease.

Shape of area.

Survey at expense of application.

Period.

Yearly rent. 52/1978.

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In respect of the 3rd year of the term of an oil mining lease 1.80

In respect of the 4th year of the term of an oil mining lease 2.20

In respect of the 5th year of the term of an oil mining lease 2.60

In respect of the 6th year of the term of an oil mining lease 3.00

In respect of the 7th year of the term of an oil mining lease 3.40

In respect of the 8th year of the term of an oil mining lease 3.80

In respect of the 9th year of the term of an oil mining lease 4.20

In respect of the 10th year of the term of an oil mining lease 4.60

In respect of the 11th year and each subsequent year of the term of the lease ........................................................ 5.00

Provided that the Minister may from time to time vary the rates set out in the foregoing provisions of this regulation.

36. (1) The lessee shall pay the royalties hereunder specified –

(a) on crude oil, an amount equal to 18% of the value of the oil;

(b) on casinghead petroleum spirit, an amount equal to 18% of the value;

(c) on natural gas, 18% of the value at the well head in the field of production subject to a reduction of one half where the gas is sold to other licensees or lessees for repressuring purposes:

52/1978.

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Provided that the Minister may, from time to time vary the rates set out in the foregoing provisions of this paragraph.

(2) The said royalties shall be assessed and paid in the manner provided in Part III of the Second Schedule hereto.

(3) Every oil mining lease shall contain a clause providing for the periodical revision of royalties in the manner provided in Part III of the Second Schedule hereto.

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FIRST SCHEDULE.

APPLICATION FOR AN OIL EXPLORATION LICENCE, AN OIL PROSPECTING LICENCE OR AN OIL MINING LEASE.

(1) Name (s) of Applicants (s) in full ....................................................

(2) If application is by an individual or individuals

(a) Address .........................................................................................

(b) Nationality .....................................................................................

(c) Occupation ....................................................................................

(3) If application is by a company

(a) Principal place of business ..............................................................

(b) If principal place of business is outside Belize, name and address of duly authorised agent in Belize

THE SUBSIDIARY LAWS OF BELIZE REVISED EDITION 2003 Printed by the Government Printer,



57

......................................................................................................

......................................................................................................

......................................................................................................

(c) Nature of business .........................................................................

(d) Names of directors Nationality ............................................................... .............................. ............................................................... ..............................

(e) Names of principal shareholders Amount of shareholding ................................................................ .............................. ................................................................ ..............................

(4) State whether an Oil Exploration Licence, an Oil Prospecting Licence or an Oil Mining Lease is required and whether the appli- cation is in respect of National lands or Alienated lands or both ....................................................... ..............................

(5) Period for which licence or lease is required ........................................................... ..............................

(6) Situation and approximate size of the area for which application is made ................. ..............................

(7) Brief particulars of previous experience in oil prospecting or oilfield develop- ment work .......................................................... ..............................

(8) Names and qualifications of tech- nical experts or advisers ....................................... ..............................

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(9) State amount of capital for operations under the licence or lease applied for

(a) At present available ........................ ..............................

(b) Which applicant can make available and the source ................................

...............................

(10) If the applicant is an alien, or a company incorporated outside the Commonwealth state full particulars of the company to be incorporated by the applicant in Belize or in some other part of the Commonwealth for the purpose of receiving the grant of and exploiting any licence or lease which may be granted, including particulars similar to those specified in (3) (d) and (8) above and the amount of the capital proposed. .................................................................................................................... ...................................................................................................................

I/We hereby declare that all the foregoing particulars are correct.

Date ............................. Signature (s) of Applicant (s) .................................. (If the applicant is a Company state capacity in which form is signed.)

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59

52,53 SECOND SCHEDULE

Part I. - Oil Exploration Licence (Model Clauses): - National and Alienated Lands.

Part II.- Oil Prospecting Licence (Model Clauses): - National Lands; Alienated Lands; National and Alienated Lands.

Part III. - Oil Mining Lease (Model Clauses): - National Lands; Alienated Lands; National and Alienated Lands.

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