Chapter IX TESTING OF PETROLEUM

(1) The State Government may by notification, authorize any officer by name or by virtue of office to enter any place where petroleum is being imported, transported, stored, produced, refined or blended and to inspect and take samples of any petroleum found therein. (2) The State Government may make rules (a) regulating the taking of samples of petroleum for testing; (b) determining the cases in which payment shall be made for the value of samples taken, and mode of payment, and (c) generally regulating the procedure of officers exercising powers under this section.

(1) A standard apparatus for determining the flash-point of petroleum shall be deposited with an officer to be appointed in this behalf by the State Government by notification, (2) Such apparatus shall be engraved with the words “Standard Test Apparatus” and shall be verified and corrected from time to time and replaced when necessary in accordance with the rules made under section 47. (3) The Standard Test Apparatus shall, on payment of the prescribed fees, be open to inspection at all reasonable times by any person wishing to inspect it.

(1) The officer appointed under section 51 shall on payment of the prescribed fee, if any, compare with the Standard Test Apparatus any apparatus for determining the flash point of petroleum which may be submitted to him for this purpose. (2) If any apparatus is found by him to agree with the Standard Test Apparatus within the prescribed limits, the officers shall engrave such apparatus with a special number and with the date of comparison, and shall give a certificate in respect of it in the prescribed form, certifying that on the said date the apparatus was compared with the Standard Test Apparatus and was found to agree with it within prescribed limits, and specifying any corrections to be made in the results of tests carried out with the apparatus. (3) A certificate granted under this section shall he valid for such period as may be prescribed. (4) A certificate granted under this Section shall, during the period for which it is valid, be proof, until the contrary is proved, of any matter Stated therein. (5) The officer shall keep a register, in the prescribed form of all certificates granted by him under this section.

The State Government may authorize any officer by name or by virtue of office to test petroleum of which samples have been taken under this Act or which may have been submitted to him for test by any person and to give certificates of the results of such tests.

All tests of petroleum made under this Act shall be made with a test apparatus in respect of which there is valid certificate under section 42 and shall have, due regard to any correction specified in that certificate, and shall be carried out in accordance with rules made under section 47.

(1) The testing officer shall, after testing samples of petroleum make out a certificate in the prescribed form, stating whether the petroleum is petroleum having a flashpoint of (i) below twenty- three degrees Celsius, or (ii) twenty-three degrees Celsius and above but below sixty-five degrees Celsius or (iii) sixty-five degrees Celsius and above but below ninety-three decrees Celsius, (2) The testing officer shall furnish the person concerned, at his request, with a certified copy of the certificate on payment of the prescribed fee and such certified copy may be produced in any court or before any authority in proof of the contents of the original certificate. (3) A certificate given under this section shall be admitted ~n evidence in any proceedings which may be taken under this Act in respect of the petroleum from which samples were taken, anti shah until the contrary is proved be conclusive proof that the petroleum has the flash-point (i) below twenty-three degree Celsius, (ii) of twenty-three degree Celsius and above but below sixty-five degree Celsius, or (iii) of sixty-five degree Celsius and above hut below ninety-three degree Celsius,

(1) The owner of any receptacle or his agent, who is dissatisfied with the result of the test of petroleum may, within seven days from the date on which he received intimation of the result of the test, apply to the Officer empowered under Section 43 to have fresh samples of the petroleum taken and tested. (2) On such application and on payment of the prescribed fee, fresh samples of the petroleum shall be taken in the presence of such owner or agent or person deputed by him and shall he tested in the presence of such owner, agent or person deputed by him. (3) If on such retest it appears that the original test was erroneous, the testing officer shall cancel the original Certificate granted under Section 45, shall make out a fresh certificate, and shall furnish the owner of the petroleum or his agent, with a certified copy thereof, free of charge.

The State Government may, by notification, make rules. (a) for the specification, verification, correction and replacement of the Standard Test Apparatus. (b) prescribing fees for the inspection of the Standard Test Apparatus; (c) regulating the procedure in comparing a test apparatus with a Standard Test Apparatus; (d) prescribing the form of certificate to be given in respect of a test apparatus so compared, and the period for which such certificate shall be valid; (e) prescribing the form of the register of such certificates; (f) prescribing fees for comparing a test apparatus with the Standard Test Apparatus; (g) regulating the procedure of testing officers in carrying out tests of petroleum, providing for the arranging of results where severed samples of the same petroleum are tested and prescribing the variation from standard temperatures which may be allowed; (h) prescribing the form of certificates of tests of petroleum and the fees which may be charged therefore (i) providing, where the results of the testing of sample raise a doubt as to the uniformity of the quality of the petroleum in any lot under test, for the division of the lot into sub-lots, and for the selection and testing of samples of each sub-lot and for the arranging of results in accordance with the results of tests of those samples; (j) prescribing fees for re-test under section 46 and providing for the refund where the original test was erroneous; and (k) generally regulating the procedure of all officers performing duties connected with the testing of petroleum, and providing for any matter incidental to such testing.

The State Government may also make rules proving specially for the testing of any form of petroleum which is viscous or solid or contains sediments nr thickening ingredients, and such rules may modify or supplement any of the provisions of this Chapter or of the rules made under Section 47 in order to adapt them to the special need of such tests.

In this chapter, unless the context otherwise requires (a) “Competent Authority” means any person or authority appointed by the State Government by notification, to perform the functions of the competent authority under this Act, and different persons or authorities may he authorized to exercise all or any of the functions of the competent authority under this Act in the same area or different areas specified in the notification; (b) “corporation” means any body corporate established under any Central or State Act, and includes — (i) a company termed and registered under the Companies Act. 1956, and (ii) a company formed and registered under any law relating to company formerly in force in any part of the State, (c) words and expressions used in this chapter and not defined in chapter 1 have the meanings, respectively assigned to them in that chapter.

(1) whenever it appears to the State Government that it is necessary in the public interest that, for the transport of mineral oils and natural gas from one locality in the State to another locality in the State, pipe lines mar be laid by the State Government or a corporation, authorized by the State Government to do so and that for the purpose of laying such pipelines it is necessary to acquire the right of user in any land in the State under which such pipelines may be laid, it may, by notification declare its intention to acquire the right of user therein. (2) every notification under Sub-section (1) shall give a brief description of the land. (3) The competent authority shall cause the substance of the notification to be published at such places and in such manner as may he prescribed.

On the issue of a notification under Sub-section (1) of section 50 it shall be lawful for any person authorized by the State Government or the corporation which proposes to lay the pipelines for the transport of any mineral Oil or natural gas and its servants and workmen (a) to enter upon and survey and take levels of any land specified in the notifications; (b) to dig or bore into the sub-soil; (c) to set out the intended line of work; (d) to mark such levels, boundaries and lines by ploaing marks and cutting trenches; (e) where otherwise survey cannot be completed and levels taken and boundaries and lines marked, to cut down and clear away any part of any standing crop, fence or jungle, and (f) to do all other Acts necessary to ascertain whether pipelines can be laid under the land. Provided that while exercising any power under this Section, such person or any servant or workman of such person shall cause as little damage or injury as possible to such land

(1) Any person interested in the land specified in the notification made under section 50 may, within twenty-one days from the date of publication of the notification under sub-section (1) of section 50 object to the laying of the pipeline under the land (2) Every objection under sub-section (1) shall be made to the competent Authority in writing and shall set out the grounds thereof and the Corn patent Authority shall give to the objector a reasonable opportunity or being heard either in a person or by a legal practitioner and may, after hearing all such objections and after making such further inquiry, if any, as that Authority things necessary, by order, either allow or disallow the objections. (3) Any order made by the Competent Authority under Sub-section (2) shall be final.

(1) Where no objections under sub-section (1) of section 52 have been made to the competent authority within the period specified therein or where the Competent Authority has disallowed the objections under sub-section (2) of that Section, that Authority shall as soon as may be, either make a report in respect of the land described in the notification under sub-section (1) of section 50 or make different reports in respect or different parcels of such land, to the State Government containing his recommendations on the objections together with the records of the proceedings held by him, for the decision of that Government and upon receipt of such report the State Government shall, if satisfied that such and is required for laying any pipelines for the transport of any mineral oil or natural gas, declare, by notification, that right of user in the land for laying pipelines shall be acquired and different declarations may be made from time to time in respect of different parcels of the land described in the notification made under sub-section (1) of section 50 irrespective of whether one report or different reports have been made by the competent authority under this sub-section. (2) On the publication of the declaration under subsection (1), the right of user in the land specified therein shall vest absolutely in the State Government free from all encumbrances. (3) Where in respect of any land a notification has been made under sub-section (1) of section 50 but no declaration in respect of any parcel of land covered by that notification has been published under this section within a period of one year from the date of that notification, that notification shall cease to have effect on the expiration of that period. (4) Notwithstanding anything contained in sub-section (2), the State Government may, on such terms and conditions as it may think fit to impose, direct by order in writing, that the right of user in the land for laying the pipelines shall, instead of vesting in the State Government, vest, either on the date of publication of the declaration, or on such other date as may be specified in the direction, in the corporation proposing to lay the pipelines and thereupon the right of such user in the land shall, subject to the terms and conditions so imposed, vest in the corporation free from all incumbrances.

(1) Where the right of user in any land has been vested in the State Government or a corporation under Section 53 — (i) it shall be lawful for any person authorized by the State Government or such corporation and its servants and workmen to enter upon the land and lay pipelines or to do any other act necessary for laying pipelines Provided that no pipelines shall be laid under — (a) any land which, immediately before the date of the notification under Sub-section (1) of Section 50 was used for residential purposes; (b) any land on which there stands any permanent structure which was in existence immediately before the said date; (c) any land at a depth which is less than one metre from the surface; (ii) for laying pipelines for the transport of mineral oils or natural gas, it shall be lawful for any person authorised by the State Government or such corporation to use such land for laying pipelines for transporting any mineral oil or natural gas and where the right of user in any land has so vested for laying pipelines for transporting any mineral oil or natural gas, it shall be lawful for such person to use such land for laying pipelines for transporting such mineral oil or natural gas, and (iii) such land shall be used only for laying the pipelines and for maintaining, repairing, altering or removing any such pipelines or for doing any other act necessary for the aforesaid purposes or for the utilisation of such pipelines. If any dispute arises with regard to any matter referred to in paragraph (b) or paragraph (c) of the proviso to Clause (i) of Sub-section (1) the dispute shall be referred to the competent authority whose decision shall be final.

For maintaining, examining, repairing, altering or removing any pipeline or for doing any other act necessary for the utilisation of pipelines or for the making of any inspection or measurement for any of the aforesaid purposes, any person authorised in this behalf by the State Government or the corporation, as the case may be, may after giving a reasonable notice to the occupier of the land under which the pipelines have been laid, enter therein with such workmen and assistants as may be necessary. Provided that, where such person is satisfied that an emergency exists, no such notice shall be necessary. Provided further that while exercising any powers under this section, such person or any workman or assistant of such person shall cause as little damage or injury as possible to such land.

(1) The owner or occupier of the land with respect to which a declaration has been made under Sub-section (1) of section 53, shall be entitled to use the land for the purpose for which such land was put to use immediately before

(1) Where, in the exercise of the powers conferred by Section 50, Section 53 or Section 54 any person interested in the land under which the pipeline is proposed to be, or is being, or has been laid, the State Government or the corporation, as the case may be, shall be liable to pay compensation to such person for such damage, loss or injury, the amount of which be determined by the competent Authority in the first instance. (2) If the amount of compensation determined by the competent authority under sub-section (1) is not acceptable to either of the parties, the amount of compensation shall, on application by either of the parties to the Deputy Commissioner within the local limits of whose jurisdiction the land or any part thereof is situated, he determined by the Deputy Commissioner. (3) The competent authority or the Deputy Commissioner while determining the compensation under Sub-section (1) or Sub-section (2) as the case may be, shall have due regard to the damage, loss or injury sustained by any person interested in the land by reason of - (i) removal of trees or standing crops, if any, on the land while exercising the powers under Section 50, Section 53 or Section 54; (ii) the temporary severance of the land under which the pipeline has been laid from other lands belonging to, or in the occupation of, such person, or (iii) any injury to any other property, whether movable or immovable, or the earnings of such person in any other manner Provided that in determining the compensation no account shall be taken of any structure or other improvement made in the land after the date of the notification made under Sub-section (1) of Section 50 (4) Where the right of user of any land has vested in the State Government or the corporation, the State Government or the corporation, as the case may be, shall, in addition to the compensation, if any, payable under Sub-section (1), be liable to pay to the owner and to any other person whose right of enjoyment in that land has been affected in any manner whatsoever by reason of such vesting, compensation calculated at ten percent of the market value of the land on the date of notification made under Sub-section (1) of Section 50, (5) The market value of the land on the said date shall be determined by the Competent Authority and if the value so determined by that Authority is not acceptable to either of the parties, it shall, on an application by either of the parties, to the Deputy Commissioner referred to in Sub section (2), be determined by that Deputy Commissioner. (6) The decision of the Deputy Commissioner under Sub-section (2) of Sub-section 50 shall be final.

(1) The amount of compensation determined under Section 37 shall be deposited by the State Government or the corporation, as the case may be, with the Competent Authority within such time and in such manner as may be prescribed. (2) If the amount of compensation is not deposited within the time prescribed under Sub-section (1), the State Government or the corporation, as the case may be, shall be liable to pay interest thereon at the rate of six percent per annum from the date on which the compensation had to be the deposited till the date of the actual deposit. (3) As soon as may be after the compensation has been deposited under Sub-section (1) the Competent authority shall on behalf of the State Government or the corporation, as the case may be, pay the compensation, to the persons entitled thereto. (4) Where several persons claim to be interested in the amount of compensation deposited under Sub-section (1), the Competent Authority shall determine the person who in its opinion are entitled to receive the compensation and the amount payable to each of them. (5) If any dispute arises as to the apportionment of the compensation or any part thereof or as to the persons to whom the same or any part thereof is payable, the Competent Authority shall refer the dispute to the decision of the Deputy Commissioner within the local limits of whose jurisdiction the land or any part thereof is situated and the decision of the Deputy Commissioner thereon shall be final.

The Competent Authority shall have, for the purpose of this Act, all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908 in respect of the following matters, namely (a) summoning and enforcing the attendance of any person and examining him on oath; (b) reguiring the discovery and production of any document; (c) reception of evidence on affidavit; (d) requisitioning any public record from any court or office; (e) issuing commission for examination of witnesses.

(1) Whoever wilfully obstructs any person in doing any of the acts authorised by Section 51, Section 54 or Section 56 or wilfully fills up, destroys, damages or displaces any trench or mark made under Section 51 or wilfully does any act prohibited, under Section 56, shall be punished with imprisonment for a term which may extend to six months or with fine or with both. (2) Whoever wilfully removes, displaces, damages or destroys any pipeline laid under Section 34, shall be punished with imprisonment for a term which shall not be less than one year, but which may extend to three years and shall also be liable to fine.

(1) The State Government may, by notification, make rules for carrying out the provisions of this Chapter. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters namely:- (a) the place at which and the manner in which the substance of the notification may be published under Sub-section (3) of Section 50; (b) the time within which and the manner in which the amount of compensation may be deposited under Sub section (1) of Section 58; (c) any other matter which is required to be, or may be prescribed.

The provisions of this chapter shall be in addition to, and not in derogation of, any law for the time being in force in the State relating to the acquisition of land.