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Petroleum Act


Published: 1979-06-15

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PETROLEUM

THE PETROLEUM ACT

ARRANGEMENT OF SECTIONS

PART I. Preliminary

1. Short title.

2. Interpretation.

PART D. Vesting ofPetroleum

3. All petroleum in its natnral state in strata vested in Ule Crown.

4. Control of certain operations relating to petroleom.

PART 111. The Pelroleum Corporation ofJanlaica

5. Establishment of the Petroleum Corporation of Jamaica

6 Functions of the Corporation.

7. Policy directions and guidelines.

8. Borrowing powers.

9. Advances, grants and guarantee of borrowings.

10. Repayment of, and interest on, advances and sums issued to meet
guarantees.

11. Securities.

12. Reselve fund.

13. Accounts and audit.

14. Annual report and estimates.

15. [Deleted by Act 28 of2003, S 2.1

16. [Deleted by Act 28 of 2003, S. 2.1

17. Power to appoint secretary and other staff and agents.

PART IIIA. The Petrocaribe Development Fund

17A. Interpretation.

178. Establishment of the Petrocaribe Development Fund,

17C. Functions of the Fund.

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PETROLEUM

17D. Establishment of Board of Management.

17E. Policy directions.

17F. Payment into Fund.

17G. Issuance of Promissory Notes.

17H. Application of revenue.

171. Power to invest moneys.

17J. Accounts and audit.

17K. Annual report

17L. Exemption from income tax.

PART IV. Miscellaneous

18. Specified conlrxlon.

19. General rights to enter land and canyon operations thereon

20. Notice to owner and occupier of land, and security for
cornpensation.

21. Compensation to owner and occupier of land.

22. [Deleted byAcf 36 of 199.5, Sch.]

23. [Delefed byAct36 of199.5, Sch.]

24. [Deleted by Act 36 of 1995. Sch.]

25. [Deleted by Act 36 of199.5, Sch.]

26. Regulations.

27. Offences.

27A. Seizure of petroleum prior to conviction.

27B. Additional penalties.

28. Extension of laws of Jamaica to certain areas and vessels.

SCHEDULES

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PETROLEW 3

THE PETROLEUM ACT
Sch,

11 of 1990,

[ISth June, 1979.1 l6;%"'
33 of1991
S. 22,

36 of 1995
PART I. Preliminary S C ~ ,

28 a W H U
s. 2.

16 012006.

1. This Act may be cited as the Petroleum Act. shlrrt title.
2. In this Act- ~ ~ ~ ~ t s t i o n .

"chairman" means the chairman of the Corporation;
"contractor" means any person, firm or entity with whom

the Corporation has entered into any agreement for the
exploration and development of petroleum resources
and the refining, processing, marketing, trading,
exporting or importing of petroleum or petroleum
products;

"the Corporation" means the Petroleum Corporation of
Jamaica established under this Act;

"debenture" includes debenture stock;
"development" means the drilling and completion of wells,

the production of petroleum, and the carrying on of
activities related thereto, after the discovery of
petroleum;

"energy resource" means petroleum, oilshale, tarsand, coal
of any form, peat and any other hydrocarbon resource,
material or substance containing or capable of creating
energy in any form;

"exploration" means search for petroleum by geological
and geophysical methods, the drilling of a test well or
wells to discover petroleum and the carrying on of
other activities related to those activities;

"functions" includes powers and duties;

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PETROLEUM

All petroleum
in its natural
State in strata
vested in the
crown.
3311991
S . 22.

Cuotrol of
certain
operations
relatine to -
petroleum.
3311991
S. 22.

"oil" means crude petroleum oil and other liquid
hydrocarbons, including liquid hydrocarbons known
as distillate or condensate recovered or extracted from
gas;

"passageway" means any highway, road, street, foot-
path, right of way, easement, or any installation
of any railway, tramway, wireline, conveyor belt,
cable way, chute, pipe, sewer, drain, tunnel, chan-
nel or duct;

"petroleum" means oil, natural gas or any other form of
hydrocarbon substance but does not include coal or
bituminous shale or any other stratified deposit from
which oil can be extracted by destructive distillation;

"petroleum product" means any product derived from
petroleum by any refining process;

"specified contractor" means any contractor declared under
section 19 to be a specified contractor.

PART 11. Vesting ofPefroleum

3. There is hereby vested in the Crown all petroleum
existing in its natural state in strata in Jamaica including
the bed and subsoil of its territorial sea, its continental shelf
and the exclusive economic zone.

4 . 1 ) Subject to subsection (Z), no person shall, except in
accordance with the provisions of this Act and any regulations
made thereunder-

(a) explore or develop petroleum resources; or

(b) acquire any right, title, interest or estate in any
petroleum,

which is vested by section 3 in the Crown.

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PETROLEUM 5

(2) Any exploration or development of petroleum 33/1991 s. 22. resources or the acquisition of any right, title, interest or
estate in any petroleum in the exclusive economic zone shall
be subject to the provisions of the Exclusive Economic Zone
Act or any order made under section 11 of that Act.

PART 111. The Petroleum Corporation of Jamaica
5.-(1) There shall be established for the purposes of this Establish-

Act a body to be called the Petroleum Corporation of Petroleum
Jamaica which shall be a body corporate to which section ~ ~ ~ ~ ~ ~ , ~ n
28 of the Interpretation Act shall apply.

ment of the

(2) The provisions of the Schedule shall have effect as Schedule.
to the constitution of the Corporation and otherwise in
relation thereto.

6.-(1) Subject to the provisions of subsections (2) and rg;Fs
(3), the Corporation shall have the exclusive right to ex- Corporation.
plore and develop the resources of petroleum which are
vested by section 3 in the Crown.

(2) Subject to the provisions of this Act the Corpora-
tion may, for the purposes of performing any of its functions
under this Act, do anything and enter into any transaction
which, in the opinion of the Corporation, is necessary to
ensure the proper performance of its functions.

(3) In particular, and without prejudice to the general-
ity of the provisions of subsections (1) and (2), the Corpora-
tion may-

(a) either alone or in association with contractors,
explore, develop and manage petroleum resources;

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6 PETROLEUM

(b) enter into agreements or arrangements providing
for the participation, assistance or co-operation of
contractors in connection with the exploration,
development or management of petroleum re-
sources;

(c) either alone or in association with contractors, ac-
quire, construct, maintain, manage or operate any
refining or processing facilities, marketing facili-
ties or outlets of any kind and type, pipelines,
tankers, trucks and other facilities for the trans-
portation of petroleum and petroleum products,
and any other facilities related to the processing,
refining, storage, exchange, sale or distribution of
petroleum and petroleum products;

(4 either alone or in association with contractors, buy,
sell, store, trade, barter, exchange, import and
export petroleum and petroleum products; and

(e) with the approval of the Minister, form subsidiary
corporations under the Companies Act to carry
on any of the activities which the Corporation has
power under this Act to carry on.

(4) The term of any agreement or arrangement made
pursuant to paragraph (b) of subsection (3) shall not exceed
twenty-five years, but any such agreement or arrangement
may be renewed for further terms, not exceeding twenty-five
years in the case of each renewal.

(5) The Corporation shall-
(a) promote an orderly and rational development of

the petroleum resources of Jamaica;
(b) endeavour to ensure that Jamaica receives the

greatest benefits obtainable from the exploitation
of its petroleum resources;

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PETROLEUM '7

promote the training of Jamaican personnel in
all aspects of the exploration, development and
management of petroleum resources and of the
processing, refining, storage, sale and distribution
of petroleum and petroleum products;
promote the development in Jamaica of technology
relating to the exploration, development and
management of, petroleum resources and to the
processing, refining, storage and distribution of
petroleum and petroleum products;
endeavour to ensure the effective transfer to Jamaica
of technology relating to the matters specified in
paragraph (4;
ensure that operations in relation to the explora-
tion and development of petroleum resources, and
any other operations ancillary to those operations,
are conducted in such a manner as to prevent and
minimize accidents and to prevent adverse effects
on the environment and other resources of Jamaica;
advise the Minister on all matters in respect of
which he seeks from the Corporation advice in
relation to exploration, development and manage-
ment of petroleum resources and to the processing,
refining, storage, marketing and importation of
petroleum and petroleum products.

(6) The Minister may by order, which shall be subject
to affirmative resolution, extend the functions of the Corp-
oration to include such energy resources other than petro-
leum, as the order shall specify; and such order may contain
such consequential or ancillary provisions as the Minister
may consider necessary or desirable.

7.-(1) The Minister may, after consultation with the Policy
directions chairman, give to the Corporation directions of a general and

character as to the policy to be followed in the performance guidelines.

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8 PETROLEUM

of any of its functions in relation to matters appearing to
him to concern the public interest and the Corporation shall
give effect to any such directions.

(2) The Minister may from time to time issue for use
by the Corporation, guidelines pertaining to substantive
matters to be included in the agreements or arrangements
described in paragraph (b) of subsection (3) of section 6 .

Borrowing 8 4 1 ) Subject to the provisions of subsection (2), the
Corporation may borrow sums required by it for meeting
any of its obligations or discharging any of its functions.

powers.

(2) The power of the Corporation to borrow in ex-
cess of such limits as the Minister responsible for finance
may from time to time fix, shall be exercisable only with
the approval of the Minister after consultation with the
Minister responsible for finance as to the amount, source
of borrowing and the terms on which the borrowing may
be effected, and an approval given in any respect for the
purposes of this subsection may be either general or limited
to a particular borrowing or otherwise, and may be either
unconditional or subject to conditions.

Advances, 9.-(1) The Minister may from time to time make ad-
andguar- vances and grants to the Corporation out of moneys pro-
borrowing. vided by Parliament for the purpose.

grants

antee of

(2) With the approval of the House of Representatives
the Minister responsible for finance may guarantee, in such
manner and on such conditions as he thinks fit, the repay-
ment of the principal and the payment of interest on any
authorized borrowings of the Corporation made otherwise
than by way of advance under subsection (1).

(3) Where the Minister responsible for finance is
satisfied that there has been default in the repayment of any
principal moneys or the payment of interest guaranteed
under the provisions of this section he shall direct the re-

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PETROLEUM

payment or, as the case may be, the payment, out of the
Consolidated Fund of the amount in respect of which there has
been such default and any such repayment or payment shall be a
charge on the Consolidated Fund.

10. The Corporation shall make to the Accountant- Repayment
General, at such times and in such manner as the Minister
may direct, payments of such amounts as may be so directed advancer

and sums in or towards repayment of advances made to the Corpora- mued to
tion under subsection (1) of section 9 and of any sums meel
issued in hlfilment of any guarantee given under that sec- *""'"".
tion, and payments of interests on any sum outstanding
for the time being in respect of such advances and of any
sums so issued at such rate as the Minister may direct, and
different rates of interest may be directed as respects
different advances or sums and as respects interest for
different periods.

11. The Corporation, with the approval of the Minister Securities.
and the Minister responsible for finance-

(a) may create and issue stock including debentures
and bonds, for the purpose of exercising its bor-
rowing powers under section 8;

(6) shall establish a sinking fund for the redemption
of debentures so created;

(c) may suspend sinking fund contributions for such
period or periods of time and subject to such con-
ditions as may be approved.

12.-41) The Corporation shall establish and maintain a R08We
reserve fund to meet contingencies and for such other purposes fund.

as it may think fit.

(2) The management of the reserve fimd, the sums
to be carried from time to time to the credit thereof, the
charges to be made against it and any other application of
the moneys comprised therein shall be as the Corporation
may determine.

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Ac~ounts 13.-(1) The Corporation shall keep proper accounts and
and audit. other records in relation to its business and shall prepare

annually a statement of accounts in a form satisfactory to
the Minister, being a form which conforms with established
accounting principles.

(2) The accounts of the Corporation shall be audited
annually by an auditor or auditors appointed annually by
the Corporation and approved by the Minister.

(3) The Auditor-General shall be entitled, on the
general directions of the Minister, at all reasonable times to
examine the accounts and other records in relation to the
business of the Corporation.

A ~ l u a l 14.-(1) The Corporation shall, in each year-
reporls and
estimates. (a) on or before the 15th day of June, submit to the
1111990
S. 2. Minister a report of its activities during the twelve

months ending on the 31st day of March in that
year, including a statement of its accounts audited
in accordance with the provisions of section 13;

(b) on or before the 15th day of January, submit to
the Minister for his approval its estimates of reve-
nue and expenditure for the financial year com-
mencing on the 1st day of April of that year.

(2) The Minister shall cause a copy of the report
together with the annual statement of accounts and the
auditor's report thereon and on the accounts to be laid on
the Tables of the House of Representatives and of the
Senate and to be published in the Gazette.

15. [Deleted by Act 28 of 2003, S. 21

16. [Deleted by Act 28 oj2003, S. 21

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PETROLEUM 11

17.-(1) The Corporation may appoint and employ, at Pow""u
appoint a

such remuneration and on such t e n s and conditions as it mief
thinks fit, a chief executive officer, a secretary and such other executive

offrscr,
officers, agents and servants as it thinks necessary for the s,cret,,and
proper performance of its functions. other staff

and agents.

(2) The Governor-General may, subject to such con-
ditions as he may impose, approve of the appointment of any
public officer in the service of the Government to any office
with the Corporation, and any public officer so appointed shall,
in relation to pension, gratuity or other allowance, and in
relation to other rights as a public officer, be treated as
continuing in the service of the Government.

PART IIIA. The Petrocaribe Development find 1612U06 S. 2.

17A. In this Part- Interpre-
tat,"".

"Board" means the Board of Management of the Fund,
established under section 17D;

"Fund" means the Petrocaribe Development Fund
established under section 17B;

"Minister" unless the context otherwise requires means the
Minister responsible for finance;

"PDVSA" means Petroleos de Venezuela S.A., the entity in
Venezuela that supplies oil and petroleum products to
Jamaica under the Petrocaribe Agreement;

"Petrocaribe Agreement" means the Energy Cooperation
Agreement Petrocaribe between the Government of the
Bolivarian Republic of Venezuela and the Government
of Jamaica signed in Montego Bay, Jamaica on August
23,2005 and any agreement in succession thereto.

17B.--(I) There is hereby established for the purposes of this zz't*e
Part, a body to be known as the Petrocaribe Development Fund pe"~~aribe
which shall be a body corporate to which section 28 of the P3!$dd
Interpretation Act shall apply.

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12

Second
Schedule.

Funcliorw of
the Fund.

Establishment
of B w d of
Management.

PETROLEUM

(2) The provisions of the Second Schedule shall have
effect as to the constitution of the Fund and otherwise in relation
thereto.

17C. The Fund shall perform the functions of-

(a) receiving-

(i) loan proceeds accruing to Jamaica under the
Petrocaribe Agreement;

(ii) loan repayments from borrowers from the
Fund; and

(iii) other proceeds which might accrue from the
investments of the Fund;

(b) financing projects and programmes in accordance with
section 17H;

(c) settling debt service obligations of Jamaica for the
purchase of oil and petroleum products under the
Petrocaribe Agreement or any other bilateral agree-
ment or arrangement between Jamaica and the
Bolivarian Republic of Venezuela.

1 7 D . l ) There shall be established for the purposes of this
Part, a Board of Management of the Fund which shall, subject to
the provisions of this Act, be responsible for-

(a) the general management of the resources of the Fund
within the guidelines established by the Minister;

(b) the policy and general administration of the affairs of
the Fund;

(c) recommending to the Minister such projects and
the programmes to be financed from the Fund, the
purposes of which fall within section 17H;

(d) investing the moneys of the Fund;
(e) meeting the financial obligations of Jamaica under the

Petrocaribe Agreement;

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PETROLEUM

V) monitoring the implementation of projects financed by
the Fund;

(g) doing or causing to be done such other things as are
necessary or expedient for or in connection with the
proper performance of the functions of the Fund.

(2) The provisions of the Third Schedule shall have
effect as to the constitution of the Board and otherwise in Schedule

relation thereto.

17E. The Minister shall give to the Board such directions of a policy
general character as to the policy to be followed by the Board in
the performance of its functions as he may consider necessary
for the achievement of the following objectives-

(a) developing the procedures necessary for-

(i) the operation of the Fund;

(ii) accessing resources from the Fund;

(h) developing the terms and conditions for loans to be
provided through the Fund;

(c) ensuring the sustainability of the Fund by matching
withdrawals against inflows to ensure that debt
obligations under the Petrocaribe Agreement can be
met from its resources when such debts become due;
and

(4 developing investment guidelines for the resources of
the Fund.

17F.-41) There shall be paid into the Fund- payment imo
Fund.

(a) such moneys as may from time to time be placed at its
disposal for the purposes of this Act by Parliament;

(b) moneys collected by way of loan proceeds accruing to
Jamaica under the Peterocaribe Agreement;

(c) all amounts which accrue from interest, loan repay-
ments and other accretions to the Fund;

PETROLEUM

Issuance of
Promissory
Notes.

Application
of revenue.

( 4 the amounts due to the Fund whether, as determined by
the Minister, in-

(i) the currency of the United States of America;
or

(ii) the equivalent amount in Jamaican currency
converted at the current rate of exchange;

(e) any other sum lawhlly paid into, or credited to, the
Fund.

(2) In this section "current rate of exchange" means the
spot market weighted average 'selling rate of exchange for
United States dollars published by the Bank of Jamaica on the
relevant day.

176.-(1) The Minister shall authorize the Corporation, the
Fund or any other body authorized by the Minister to issue
Promissory Notes to the Government of the Bolivariafi Republic
of Venezuela to secure the sums loaned to Jamaica under the
Petrocaribe Agreement.

(2) Copies of Notes issued pursuant to subsection (1)
shall be delivered to the Financial Secretary.

17H.-(1) The financial resources of the Fund shall be
applied for the purposes authorized by this Act and, without
prejudice to the generality of the foregoing, such financial
resources shall, so far as practicable, be used-

(a) to upgrade the social and physical infrastructure of
Jamaica;

(b) to implement projects which impact on the develop-
ment of the human resources of Jamaica;

(c) for the refinancing of Government of Jamaica domestic
debt;

( 4 for projects relating to energy that are aimed at re-
ducing the reliance of Jamaica on oil, and which
promote the development of alternative sources of
energy;

(e) for projects designed to stimulate economic expansion

[The inclusion of this page is authorized by L.N. 80d20081

directly, through modernization and retooling of
sectors which either earn or save foreign currency;

V) for the administration and management of the Fund;

(g) for the grant of loans-

(i) subject to subsection (Z), to public bodies that
are self-financing; and

(ii) subject to subsection (4), to the Ministry
responsible for finance and planning in order
to finance projects undertaken by Government
ministries, agencies and departments whose
expenditures are financed by appropriations
through the Budget; or

(h) for other related purposes, on such terms and conditions
as may be prescribed.

(2) A loan may be granted to a public body referred to in
subsection (I)(g) upon application in writing by that body to the
Fund and such application shall be supported in writing by the
Ministry assigned responsibility for that body.

(3) The grant of such a loan shall be evidenced by an
agreement in writing between the body referred to in subsection
(l)(g) and the Fund.

(4) Projects referred to in subsection (l)(g)(ii) may
qualify for financing from the Fund if they have the potential
to generate savings or expand revenue inflows to the
Government.

(5) In this section "public body" means a statutoly body
or authority or a government company.

171. All moneys of the Fund not immediately required to be POWat0
m w t

expended in meeting any of its obligations or discharging any of ,
its hnctions may, with due regard to the level of inflows and
debt service requirements, be invested in such interest bearing

PETROLEUM

securities in local and foreign currency as may be approved
either generally or specifically by the Minister.

Aewunts
and audit

175.-41) The Fund shall keep proper accounts and other
records in relation to its business and shall prepare annually a
statement of accounts in a form satisfactory to the Minister,
being a form which complies with generally accepted
accounting principles.

(2) The accounts of the Fund shall be audited annually
by auditors appointed by the Fund.

(3) As soon as the accounts of the Fund have been
audited, the Board shall send its audited financial statements to
the Minister, together with a copy of any report thereon made by
the auditors.

b d ~ e p * . 17K.-(1) The Board shall, within four months after the end
of each financial year, cause to be made and shall submit to the
Minister a report-

(a) dealing generally with the proceedings and activities of
the Fund during the preceding financial year; and

(6) containing-

(i) a full statement showing the assets and
liabilities of the Fund; and

(ii) the operational plans within which the Fund
proposes to carry out its functions.

(2) The Minister shall cause a copy of the report,
together with the audited annual financial statements to be laid
on the Table of the House of Representatives and of the
Senate.

Exemption
&om income

17L. The income of the Fund shall be exempt fiom the pay-
tax. ment of income tax.

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PETROLEUM 13

PART IK Miscellaneous

18. The Minister shall, as soon as is practicable after the Specified
Corporation has made an agreement or arrangement put- Co*a""S.
suant to paragraph (b) of subsection (3) of section 6, by
order declare the contractor with whom that agreement or
arrangement was made to be a specified contractor for the
purposes of this Part.

19. Subject to the provisions of this Act the Corporation cffnera~
and any specified contractor shall have the right to enter
any land and carry out thereon any operations connected andcarry
with the exploration or development of petroleum resources. ~ ~ , ~ ~ ~ ; -

On.

20.--(I) The Corporation or a specified contractor shall Noticeto
owner and not less than fourteen days before the Corporation or the ,,,,pierof

contractor enters any land pursuant to section 19- land, and
security for
compensa-
mn.

(a) give to the owner and the occupier of the land
notice of the intention so to do and of the opera-
tions which are intended to be carried out on the
land;

(b) if so required by the owner, occupier, or the
Minister, lodge with the Accountant-General such
sum or give such security as the Minister may
direct for the payment of any compensation which
may be payable under section 2 1.

(2) Upon the termination of the operations in res-
pect of which any sum was lodged or any security was
given in accordance with a requirement under subsection
(I), the person who lodged that sum or gave that security
may apply in writing to the Minister for the rehnd of
that sum or the balance thereof or for the release of that
security, as the case may require, and the Minister may-

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PETROLEUM

(a) authorize the refund or release if he is satisfied
that the refund or release should be made; or

(b) refuse to authorize the refund or release until such
time as he is satisfied that the refund or release
should be made.

(3) The making of a refund or release under sub-
section (2) shall be without prejudice to any claim or pro-
ceeding for compensation under section 21 which has arisen
or may arise against the person to whom the refund or re-
lease is made.

(4) Sums lodged under this section may be otherwise
dealt with in such manner as may be prescribed.

cow--
tion to owner

2 1 4 1 ) The Corporation or a specified contractor shall,
,,,,,,,pi, upon the demand of the owner or occupier of any land on
of land. which the Corporation or that contractor has carried out, or is

canying out, operations pursuant to section 19, pay
that owner or occupier fair and reasonable compensation
for any disturbance of his surface rights and for any damage
done to the surface of the land or to any live or dead stock,
crops, trees, buildings or works as a result of those operations.

(2) The amount of compensation payable under sub-
section (1) shall be determined by agreement between the
parties or, if the parties are unable to reach agreement, any
of them may take proceedings in the Resident Magistrate's
Court without limit of amount.

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PETROLEUM

(3) If the compensation determined by agreement in
accordance with subsection (2) is not paid, the owner or
occupier may take proceedings in the Resident Magistrate’s
Court for an order for payment without limit of amount.

(4) The sum awarded by the Resident Magistrate,
or when there has been an appeal, by the Court of Appeal,
shall be paid by the person against whom the award was
made to the person entitled to that sum, within fourteen
days after the date of the award.

(5) Without prejudice to any other means of recov-
ery if the sum awarded is not paid within the time specified
in subsection (4) it may, on application to the Minister, be
paid out of the sum, if any, lodged in accordance with sec-
tion 20.

(6) The Minister may, by notice to any person who
has failed to pay any sum awarded under this section, sus-
pend the rights of that person to carry on operations on the
land pursuant to section 19 until he pays that sum and
lodges with the Accountant-General such further sum as
the Minister may demand as security for any future com-
pensation payable.

(7) Where it is not practicable, after reasonable en-
quiry, to ascertain the name or address of the owner or
occupier of any land on which the Corporation or a speci-
fied contractor has carried out, or is carrying out, operations
pursuant to section 19, the Corporation or that contractor,
as the case may require, shall apply to the Resident
Magistrate’s Court for determination of the amount of
compensation payable to that owner or occupier without
limit of amount.

22. [Deleted by Act 36 of 1995, Sch.]
23. [Deleted by Act 36 of 1995, Sch.]
24. [Deleted by Act 36 of 1995, Sch.]
25. [Deleted by Act 36 of 1995, Sch.]

_ _ _ _ . _ _ _ _ _ _ _ _ _ ____
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16 PETROLEUM

Regula- 26.-(1) The Minister may make replations generally
for the proper carrying out of the provisions and purposes
of this Act, and in particular, but without prejudice to the
generality of the foregoing, may make regulations-

(a) for ensuring safe construction, maintenance and
operation of installations and facilities used in
connection with operations in relation to petroleum
resources, and for safe practices in the exploration
and development of, those resources;

tions.

(b) providing for the safety, health and welfare of
persons employed in operations in relation to
petroleum resources and generally for safety
measures of all kinds;

(c) for the prevention of pollution and the taking of
remedial action in respect of any pollution which
occurs;

(d) for the inspection of areas in which operations in
relation to petroleum resources are carried on and
of any plant, machinery, installations and facilities
within those areas;

(4 for the reporting of, and inquiries into, accidents;
(f> providing for the keeping and inspection of records,

books, accounts, statistics and plans;
(g) for the relinquishment of portions of areas to

which agreements or arrangements made pursuant
to paragraph (b) of subsection (3) of section 6 in
respect of development of petroleum resources
apply;

(h) providing for the protection of fishing, navigation
and other activities carried on within, or in the
vicinity of areas in which operations in relation to
petroleum resources are carried on;

(i) providing for the making of reports and returns;
______ -

me inclusion orf this page is authorized by LN. 96/ 19981

(j) prescribing standards for petroleum and petroleum
products and for the transportation of petroleum and
petroleum products;

(k) prescribing, subject to the provisions of subsection (2),
the rates of royalties to be paid to the Government, the
method of calculation of the amount of those royalties,
and the manner and time of payment thereof;

(0 prescribing the size of the area which may be allocated
to any specified contractor for the purposes of
exploration;

(m) providing for the determination of the value of oil and
natural gas after taking into account all relevant
factors;

(n) requiring the Corporation to submit to the Minister, at
such times and in respect of such periods a s the
regulations shall specify, the investment programmes
of the Corporation;

(0) providing for the conservation of petroleum and other
energy resources and the avoidance of unnecessary
waste of such resources;

@) prescribing any other matter or anything which may be,
or is required by this Act to be, prescribed.

(2) Regulations under this section may provide in respect ' 6 / 2 0 ~
S. 3.

of a breach of any of the provisions thereof that the offender
shall be liable on summary conviction before a Resident
Magistrate to a fine not exceeding one million dollars or to
imprisonment for a term not exceeding six months, or to both
such fine and imprisonment.

27.-(1) Any person who- ORences.
(a) unlawfblly interferes with or obstructs the Corporation,

any contractor or their servants or agents in the
exercise of any right under this Act;

(b) wilfully obstructs, hinders or assaults any other person
in the exercise or execution of any right, power or duty
under this Act; or

PETROLEUM

(c) contravenes any of the provisions of this Act,

Seizure of
pevoleum
prior to
conviction.
1612lJUb
S. 5.

Additional
penalties.
1612006
S. 5.

shall be guilty of an offence and shall be liable on summary
conviction before a Resident Magistrate to a fine not exceeding
one million dollars or to imprisonment for a term not exceeding
twelve months, or to both such fine and imprisonment.

(2) The Minister may, by order, subject to affirmative
resolution, amend the penalties specified in this Act.

27A. Where a constable has reasonable cause to suspect that
petroleum resources are being or have been explored in
contravention of this Act or any agreement or arrangement
provided for under this Act, the constable may seize the
petroleum and it shall be dealt with pursuant to section 27B or
otherwise according to law.

27B.--(I) Where any petroleum is seized pursuant to section
27A and any person is convicted in relation thereto of an
offence under this Act or any regulations made hereunder, the
Court may, in addition to imposing a fine, make an order-

(a) for the sale or other disposal of the petroleum seized;
(b) for the payment by that person to the Crown of an

amount equal to the proceeds of the sale of petroleum
so seized; or

(c) upon the Court's assessment of the quantity of
petroleum seized and the market value at the well-
head, for the payment by the person to the Crown of-

(i) an amount equivalent to such market value
assessed; or

(ii) such part of the market value assessed as the
Court, having regard to all the circumstances,
thinks fit.

(2) Where the Court is satisfied that an order made under
subsection (1) (a) cannot, for any reason, be enforced, the Court
may, upon the application of the person by whom the
proceedings were brought, set aside the order and make either of
the orders referred to in paragraphs (b) and (c) of that sub-
section.

[The ~nclwlm of lhw pap. m sulhonzul by LN 80N20081

PETROLEUM 19

(3) The Court may, before making an order under this
section, require notice to be given to, and hear, such persons as
the Court thinks fit.

28. The laws of Jamaica extend- Extension
aflaws of

(a) to the continental shelf; Jamaica to
cettain

(b) to the exclusive economic zone; areas and
vessels.

(c) to all artificial islands and other structures built on the 3311991
areas mentioned in paragraphs (a) and (b), and any S. 22.

vessels stationed over those areas, for the purpose of
exploring for or developing petroleum resources or
removing or transporting therefrom any petroleum or
petroleum product,

to the same extent as if the continental shelf and those areas,
islands, structures or vessels (hereinafter referred to as the
maritime extensions) were located in Jamaica; and for the
purposes of the jurisdiction of any court in Jamaica any such
maritime extension shall be treated as if it were located in the
parish in which proceedings are brought.

[The itchion of this pay is aulhohd by L.N. 801/2WS]

20

Constitutim
ofthe Cor-
poration

Appuid-
"lent of
memhen.

Chaim~an

h a v e of
ahsence.

Acting
appoint-
ments.

Resigna-
tions.

Revocation
of appoint-
ments.

Garelling of
appoid-
ments.

Seal, and
execution
of docu-
ments.

PETROLEUM

FIRST SCHEDULE (Section 5)

1. The Corporation shall consist of such number of persons, not being
less than five nor more than twelve, as the Minister may from time to time
detemune.

2. The members of the Corporation shall be appointed by the Minister by
instrument in writing and, subject to the prwisions of this Schedule, shall
hold office for such period, not exceeding two years, as the Mis te r may
direct, but shall be eligible for reappointment.

3. The Minister shall appoint one of the members of the Corporation to
be the chairman thereof.

4. The Minister may grant to any member of the Corporation leave of
absence in respect of his duties as a member of the Corporation.

5. If the chairman or any other member of the Corporation is absent or
unable to act, the Minister may appoint any person to act in the place of the
chairman or such other member.

6.-(1) Any member of the Corporation, other than the chairman, may a1
any time resign his office by instrument in writing addressed to the Minister
and transmitted through the chairman, and from the date of receipt by the
Minister of that instrument, that member shall cease to be a member of the
Corporation.

(2) The chairman may at any time resign his office by instrument in
writing addressed to the Minister, and such resignation shall take effect as
from the date of receipt by the Minister of that instrument.

7. The Minister may at any time revoke the appointment of any member
of the Corporation if he thinks it expedient so to do.

8. The names of all members of the Corporation as first constituted and
every change in membership thereof shall be published in the Gazette.

- ( ) The seal of the Corporation shall be kept in the custody of the
chairman or the secretary and shall be affixed to instruments pursuant to a
resolution of the Corporation in the presence of the chairman, or any other
member of the Corporation, and the secretary.

(2) The seal of the Corporation shall be authenticated by the
signatures of the chairman, or any other member authorized to act in that
behalf, and the secretary.

(3) All documents, other than those required by law to be under sea4
made by, and all decisions of, the Cotporation may be signified under the

PETROLEUM

hands of the chairman, or any other member authorized to act in that behalf,
and the secretary.

lo.--(]) The Corporation shall meet at such times as may be necessary hcedure
or expedient for the transaction of its business, and snch meetings shall be
held at such places and times and on snch days as the Corporation may
determine.

(2) The chairman may at any time call a special meeting of the
Corpomtion and shall call a special meeting within seven days of the receipt
of a written requisition for that purpose addressed to him by any two
members of the Corporation.

(3) The chairman shall preside at all meetings of the Corporation at
which he is present, and in the case of his temporary absence the members
present and constituting a quorum shall elect a chairman from among their
number to preside at the meeting.

(4) The q u o m of the Corporation shall be such number as the
Minister may from time to time determine, but shall not be less than one-half
the total number of members of the Corporation.

(5) The decisions of the Corporation shall be by a majority of votes
and, in addition to an original vote, the chairman or other person presiding at
the meeting shall have a casting vote in any case in which the voting is
equal.

(6) Minutes in proper form of each meeting of the Corporation shall
be kept and shall be confirmed as swn as practicable thereafter at a
subsequent meeting.

(7) The validity of the proceedings of the Corporation shall not be
affected by any vacancy amongst the members thereof or by any defect in the
appointment of a member thereof

(8) Subject to the provisions of this Schedule, the Corporation may
regulate its own proceedings.

11.-(1) The Corporation may delegate to any member or co~~ni t t ee pow- to
thereof such of the functions of the Corporation as the Corporation may de'egatete.
decide.

(2) Evely delegation under this paragraph shall be revocable by the
Corporation and no delegation shall prevent the exercise by the Corporation
of any function delegated.

12. A member of the Corporation who is directly or indirectly interested Disclosure
in a contract made or proposed to be made by the Corpotation- of interest.

(The iinclusion of Lis pngc is auUmircd by LN. 80*12008]

PETROLEUM

kotectron of
members.

Rmumer-
ation of
members.

m c e of
member
not a public
office.

Seal and
execution of
documcnls.
1612006
S. 6(b).

Appoint-
mmt and
employment
of office".

(a) shall disclose the nature of his interest at a meeting of the Cor-
poration; and

(b ) shall not take part in any deliberation or decision of the Cor-
poration with respect to that contract.

13.-(1) No member of the Corporation shall be personally liable for any
act or default of the Corporation done or omitted to be done in good faith
in the course of the operation of the Corporation.

(2) Whcre any member of the Corporation is exempt from liability
by reason only of the provisions of this paragraph the Corporation shall be
liable to the extent that it would be if the member was a servant or agent of
the Corporation.

IS. There shall be paid from the funds of the Corporation to the chainnan
and other members of the Corporation such remuneration whether by way of
honorarium, salary or fees. and such allowances as the Minister may
determine.

IS. The ofice of the chairman or member of the Corporation shall not
be a public office for lhe purpose of Chapter V of the Constitution of
Jamaica.

SECOND SCHEDULE (Section 17B(2))

The Petrocaribe Development Fund

1.-(1) The seal of the Fund shall be kept in the custody of the
chairman or of any officer of the Fund authorized by the Board in that
behalf, and shall be affixed to instruments pursuant to a molution of the
Board in the presence of the chairman or any other member duly authorized
to act in that behalf, and the secretary.

(2) The seal of the Fund shall be authenticated by the signature of the
secretary or any other member of the Board duly authoriLed to act in that
behalf.

2 . 4 1 ) Subject to sub-paragraph (2), the Fund shall appoint and employ
at such remuneration and on such terms and conditions as it thinks fit such
officers and employees as it thinks necessary for the proper canying out of
the provisions of this Act.

(2) The Fund shall act in accordance with such guidelines in

PETROLEUM

relation to emo1nments payable to the staff of public bodies, as are issued
from time to time by the Ministcr responsible for the public service.

3. All documents, other than those required by law to be under seal, Documems
made by, and all decisions of, the Fund may be signifled under the band of to be ~ i g -
the chairman or any member of the Board anthorizcd to act in that behalf or lUfied.
an ofkicer of the Fund so authorized.

4. The expenses of the Fund (including the remuneration of the staff Ewenses of
thereof and members of the Board) shall be defrayed out of the financial Fund
resources of the Fund.

THIRD SCHEDULE (Section 17D(2))

The ~oard'of~unu~ernent of he Fund

1. The Board shall consist of such number of members being not less ~onstitu~ion
than five nor more than nine as the Minister may from time to time appoint ofthe
including- Uonrd.

(a) the following persons who shall be ex-oflcio members

(i) the Permanent Secretary of the OMice of the Prime
Minister or his nominee;

(ii) the Secretary to the Cabinet or his nominee;

(iii) the Permanent Secretary of the Ministry with respon.
sibility for energy or his nominee;

(iv) the Chief Executive Officer of the Corporation;

(v) the Financial Secrekuy.

(vi) the Director Gene& of lhe Planning Institute of
Jamaica;

(b) such other persons who appear to the Minister to have ability and
experience in matters relating to the activities of the Fund (herem-
after referred to as "selected members").

2.-41) The Miniier shall appoint- Chairmu,
and deputy

(a) the Financial Secretary to be chairman of the Board; and chairman.
(b) a deputy chairman from among the other menlbers.

(2) In the case of the absence or inability to act of the chairman, the
deputy chairman shall exercise the functions of the chairman

(3) In the case of the absence or inability to act at any meeting of

PETROLEUM

Tern) of
oiiice.

Acting ap-
pointments.

Resignation.

Revocation
of appoint-
ments.

Gazetting of
appointmenls.

Leave of
absence.

Procedure
and meetings.

both the chairman and the deputy chairman, the remaining members shall
elect one of their number to act as chairman of that meeting.

3. Subject to the provisions of this Schedule, a selected member of the
Board shall hold oflice for a period not exceeding three years and each such
member shall be eligible for re-appointn~ent.

4. The Minister may appoint any person to act in the place of any
member of the Board in the case of the absence or inability to act of such
member.

5. A selected member of the Board may at any time resign his office by
instrument in writing addressed to the Minister and transmitted through the
chairman, and from the date of Ule receipl by the Minister of such instrument,
such member shall cease to be a member of the Board.

6. The Minister may at any time revoke the appointment of a selected
member if be considers it expedient so to do.

7. The names of all members of the Board as first constituted and every
change in membership thereof shall be published in the Gazette.

8.-(1) The Minister may, on the application of any selected member of
the Board, grant leave of absence to such member.

(2) The appointment of a selected member shall be regarded as
terminated if, without the grant of leave of absence, that member is absent
from thee consecutive meetings of the Board.

9.-41) The Board shall meet at such times as may be necessary or
expedient for the transaction of business (but at least six meetings shall be
held within each financial year) and such meetings shall be held at such
places and times and on such days as the Board shall determine.

(2) The chairman may at any time call a special meeting of the Board
to be held within seven days of a written request for the purpose addressed to
him by any two members of the Board.

(3) The chairman or, in the case of the absence or inability to act of
the chairman, the deputy chairman or the person elected to act as chainnan in
accordance with paragraph 2(3) shall preside at the meetings of the Board,
and when so presiding the chairman deputy chairman or the person elected
as aforesaid to act as chairman, as the case may be, shall have an original and
a casting vote.

(4) The quorum of the Board shall be one-half the number of the
membership.

(5) The decisions of the Board shall be by a majority of votes and, in

[Tho inclusion of h i s pax= is aulhnizd by L.N. 80d2W8]

PETROLEW

addition to an original vote, the chainnan or other member pres~ding at
the meeting shall have a casting vote in any case in which the voting is
cqual.

(6) Minutes in propcr form of each meeting of the Board shall be
kept.

(7) Subject to the provisions of this Schedule the Board may regulate
its own proceedings.

10. A member of the Board who is directly or indirectly interested in any Disdo~ure
matter which is being dealt with by the Board shall- of interest

(a) disclose the nature of his interest at a meeting of the Board; and

( b ) not take part in any deliberation or decision of the Board with
respect to that matter.

11.-(1) The Board may appoint such committees as it thinks fit, Appoimmenl
consisting wholly or partly of members of the Board and may delegatc to ofcum-
such committees such ofthe Board's functions as it thinks fit. milless.

(2) A delegation under subparagraph (1) shall not prevent the
exercise by the Board of any function so delegated.

12. There shall be paid lo the chairman and each member of the Board Remuneration
such remuneration, if any (whether by way of honorarium, salary or fees) and of*i'e&s
such allowances as the Minister may determine.

13. No act done or proceeding taken under this Act by the Board shall be Proledion of
questioned on the ground of- office.

(a) the existence of any vacancy in the chairmanship of, or any defect
in the constitution of, the Board; or

( 6 ) any omission, defect or irregularity no1 atfecting the merits of the
case.

14.-41) No member of the Board shall be personally liable for any act Pmtcciion
or default of the Board done or omitted to be doue in good faith in the course ofmembers
of the operation of the Board. of Board.

(2) Where any member of the Board is exempt horn liability by
reason only of the provisions of this paragraph, the Fund shall be liable lo the
extent that it would be if that member were an employee or agent of the
Fund.

15. The offrcc of a selected member of the Board shall not be a public office of
office for the purposes of Chapter V of the Constitution of Jamaica. mernbcr not

nublic

[The in~lwion of this pp is aulharilrd by L.N. 80*12008]