Nigerian Legislation

1.             This Act may be cited as the Oil Pipelines Act and shall apply Federation.

(a)           permits to survey routes for oil pipelines; and

(b)           licences to construct, maintain and operate oil pipelines.

4.     (1)           Any person may make an application to the Minister in accordance with the provisions of this Act and of any regulations made thereunder for the grant of a permit to survey the route for an oil pipeline for the transport of mineral oil, natural gas, or any product of such oil or such gas to any point of destination to which such person requires such oil, gas or product to be transported for any purpose connected with petroleum trade or operations.

(2)            Every application for a permit to survey shall specify the approximate route or alternative routes proposed.

(3)           The Minister may -

(a)           grant the permit to survey on payment of the fees require of this Act to be paid by the applicant on the submission of the application and on grant of the permit to survey respectively; or

(b)           for reasons which to him appear sufficient, refuse to grant the permit to survey.

(4)           If the Minister refuses to grant the permit to survey he shall notify the applicant in writing of such refusal and the reasons therefor.

5.    (1)            A permit to survey shall entitle the holder, subject to the section 6 of this Act, to enter together with his officers, agents, workmen and other servants and with any necessary equipment or vehicles, on any land upon the route specified in the permit or reasonably close to such route for the following purposes -

(a)           to survey and take levels of the land;

(b)           to dig and bore into the soil and subsoil;

(c)           to cut and remove such trees and other vegetation as may impede the purposes specified in this subsection; and

(d)           to do all other acts necessary to ascertain the suitability of establishment of an oil pipeline or ancillary installations,

(2)           The Minister may, upon application by the holder of a permit to survey, vary the route specified in such permit, but such variation shall not invalidate or make illegal any act done by the holder pursuant to the permit prior to such variation, nor prejudice the rights of any person under this Act with reference to any act done by the holder pursuant to the permit prior to such variation.

6.     (1)            Except with the previous consent of the owner or occupier no person shall under the authority of section 5 of this Act enter any building or upon any enclosed court or garden attached to any building, without having given the owner or occupier at least fourteen days' notice of his intention to do so, nor enter upon any cultivated land without without having given such notice to the owners or occupiers thereof or having affixed some prominent position upon such land.

(2)           No person shall under the authority of section 5 of this Act enter any of the lands described in section 15 of this Act except with the prior assent of the owners or occupiers or persons in charge of such lands.

(3)           The holder of a permit to survey acting under the authority of section 5 of this Act shall take all reasonable steps to avoid unnecessary damage to any land entered upon and any buildings, crops or profitable trees thereon, shall make compensation to the owners or occupiers for any damage done under such authority and not made good.

(4)           In the event of dispute as to the amount of compensation to be paid as to whether or to whom any compensation shall be paid the provision of Part IV of this Act shall apply.

7.    (1)           The holder of a permit to survey may make an application to the Minister in accordance with the Provisions of this Act and of any regulations made thereunder for the grant of an oil pipeline licence in respect of any oil pipeline the survey of the route for which has been completed by the applicant.

(2)           The Minister may_

(a)           grant the licence on payment of the fees required by section 31 of this Act to be paid by the applicant on the submission of the application and the grant of the licence respectively; or

(b)           for reasons which the Minister considers sufficient, refuse to grant the licence.

(3)           If the Minister refuses to grant the licence, he shall notify the application in writing of such refusal and the reasons therefor.

(4)           No person other than the holder of a licence shall construction, maintain or operate an oil pipeline.

(5)           Every person who acts in contravention of subsection (4) shall be guilty of an offence and shall be liable on conviction to a term of imprisonment not exceeding two years or to a fine not exceeding one thousand naira or to both such imprisonment and such fine.

(6)            The Minister may require any person who is convicted of an offence under this section to have the pipeline in respect of which the offence was committed and any ancillary installation removed to the extent that Minister does not elect to purchase such pipeline or any such installation or any part thereof. In the event of failure to agree on the purchase same shall be determined by arbitration.

(7)           An offender who is required by the Minister under subsection (6) of this section to have a pipeline or any ancillary installation removed shall make good any damage done to any land by such removal.

8.    (1)            An applicant for a licence shall deliver to the Minister an application for the same stating the terminal points and giving a description and accompanied by a plan of the proposed route of the pipeline sufficient to identify the land affected thereby and the position of any pumping stations, tanks or other ancillary installations. The Minister shall upon application appoint a date not less than six weeks ahead for the hearing of objections, if any, and shall nominate the person or persons by whom and the place or places at which any such objections shall be heard, and shall thereupon cause a notification of such date and other particulars and of the places at which objections shall be lodged to be made in the Federal Gazette and of each State concerned.

(2)           Before or upon application being made in accordance with accordance of this section mace of the application shall be given by the applicant in the following manner_

(a)           by publication thereof in the State Gazette of each State through which the route of the projected pipeline passes;

(b)           by Publication thereof in such newspapers circulating in the areas through which the route of the projected pipeline passes as the Minister may require;

(c)           by posting or delivering the same to the following persons entitled to be carrying on operations in the area which would be affected by the grant of the licence

(i)            holders of exclusive prospecting licences, mining rights, oil exploration licences, and oil prospecting licenses,

(ii)             lessees of mining leases, temporary mining leases or oil mining leases,

(d)           by publication in areas likely to be affected by the licence in such other manner as the Minister may direct,

(3)           Such notice shall contain a description of the proposed pipeline and its route and the proposed ancillary installations and shall set out a list of places and times at which copies of a plan sufficient to identify the land affected thereby may be inspected, and each copy of such notice shall require that objections (if any) shall be made at least seven days before the date be appointed by the Minister for the hearing of objections and delivered at the places to be appointed by him for such lodgment.

9.    (1)           An person whose land or interest in land may be injuriously affected by the grant of a licence may within the period specified for objections lodge verbally or in writing at one of the specified addresses notice of objection stating the interest of the objector and the grounds of objection.

(2)           Matters relating to quantum of compensation shall not be material grounds to include a notice of objection under this section.

(3)           It shall be the duty of any public officer who receives a verbal objection in the course of his duties to record the name and address, interest and grounds of objection of any person lodging such a verbal objection in accordance with this section.

10.   (1)           Upon the date fixed for the hearing of objections, the persons appointed by the Minister shall inquire report into any such objection, giving all parties concerned an opportunity to be heard, and a report thereof shall be made without delay to the Minister.

(2)           Matters relating to quantum of compensation shall not be material grounds for objection under this section.

(3)           If, after consideration of the report, the Minister considers that the licence should be granted he shall inform the President accordingly, but if the Minister considers that a licence should not be granted in respect of the proposed route or any part of it, he shall so inform the applicant or the objector or objectors concerned, and thereupon the applicant shall be entitled to receive a permit to survey such other route or routes as he may propose or to submit an application for a licence in respect of another route and the provisions of Parts II and III of this Act will apply in respect thereof

11.   (1)            A licence shall entitle the holder, his officers, agents, workmen servants with any necessary equipment or vehicles, subject to the provisions of sections 14, 15 and 16 of this Act, to enter upon, take possession of or use a strip of land of a width not exceeding two hundred feet or of such other width or widths as may be specified in the licence and upon the specified in the licence, and thereon thereover or thereunder construct, maintain and operate an oil pipeline and ancillary installations.

(2)            For the purpose of this Act, an oil pipeline means a pipeline for the conveyance of mineral oils, natural gas and any of their derivatives or components, and also any substance (including steam and water) used or intended to be used in the production or refining or conveying of mineral oils, natural gas, and any of their derivatives or components.

(3)           The power to construct, maintain and operate an oil pipeline shall include a power to construct, maintain and operate on the route of such pipeline all other installations (referred to in this Act as "ancillary installation") that are ancillary to the construction, maintenance and operation of such pipeline, including roadways, telephone and telegraph lines (subject to the section 4 of the Telegraphs Act), electric power. cables (subject to the provision of the Electricity Act), pumping stations, storage tanks and loading terminal.

(4)           The holder of a licence shall have power to dig and get free of charge any gravel, sand, clay, stone or other similar substance (not being a mineral within the meaning assigned thereto in the Minerals Act) within any land included within the area covered by the licence to the extent that such gravel, sand, clay, stone or other substance, will facilitate the construction or maintenance of a pipeline or any ancillary installation.

(5)           The holder of a licence shall pay compensation -

(a)            to any person whose land or interest in land (whether or not it is land respect of which the licence has been granted) is injuriously affected by the exercise of the rights conferred by the licence, for any such injurious affection not otherwise made good; and

(b)           to any person suffering damage by reason of any neglect on the part of the holder or his agents, servants or workmen to protect, maintain or repair any work structure or thing executed under the licence, for any such damage not otherwise made good; and

(c)           to any person suffering damage (other than on account of his own default or on account of the malicious act of a third person) as a consequence of any breakage of or leakage from the pipeline or an ancillary installation, for any such damage not otherwise made good.

(6)           For the removal of doubt it is hereby declared that the powers granted to the holder of a licence under this Act shall: be exercisable only subject to the provisions of this Act and of any other enactment or rule of law.

12.   (1)           It shall be lawful for the President upon application by the holder of a licence at the time of the grant of such licence or at any time thereafter, to make an order ancillary on use of to such licence prohibiting or restricting the construction of Coloring any building or type of building, or the carrying of any cultivation or industrial or mining or oil mining activity within a specified type of cultivation or industrial or mining or oil mining within a specified distance, not exceeding one hundred feet, from the boundaries of the land or of any part of the land in respect of which such licence is granted.

(2)            An order made in accordance with the provisions of this shall be deemed to be part of the licence to which it is ancillary and the provision of this Act shall apply accordingly, and in the event of an application for such an order being made after the grant of the licence to which it is ancillary the provisions of sections 8, 9 and 10 of this Act shall apply as though the application were for a new licence.

13.  (1)           The right to make a deviation from the route specified in the licence may be granted at any time by the President either by amendment of the licence or by a new licence.

(2)           Sections 8, 9 and 10 of this Act shall apply to an application in respect of a deviation from the route specified in the licence as though it were an application for a new licence:

(3)           The grant of the right to' make a deviation under this section shall not invalidate or make illegal any act done by the holder of the licence prior to such grant, nor prejudice the rights of any person under this Act with reference to any act done by the holder prior to such grant.

(a)           construct any works upon any land which is the site of or is within fifty yards of any public road, dam, reservoir or building belonging to or occupied by the Federal or a State Government or Local Government, or upon any land appropriated for any railway or situate within one hundred of any railway; or

(b)           make such alteration in the flow of water in any navigable waterway, or construct such works in, under or over any navigable waterway, as might obstruct or interfere with the free and safe passage of vessels, canoes or other craft; or

(c)           construct such works in, under or over, or deposit such material in or make such alteration in the flow of water required for domestic, industrial or irrigational use as would diminish or restrict the quantity of water available for such purpose, or construct such works or make such deposit in any waterway as would cause flooding or erosion,

15.   (1)           A licence shall not authorise any person to enter upon, take possession of or use any of the following lands unless the owners or occupiers or the persons in charge thereof have given their prior assent -

(a)            any land occupied by any burial ground or cemetery;

(b)            any land containing any grave, grotto, area, tree or thing held to be sacred or the object of veneration.

(2)           If any doubt shall arise whether any lands fall within those described in this section, or who the owners or occupiers or persons in charge thereof are, the decision of the High Court shall be final.

16.  (1)           The holder of a licence shall make and maintain for the accommodation of the owners or occupiers of any land in respect of which the license been granted or of the Owners or occupiers of adjoining land or for the accommodation of the users of any customary track or path such crossing, bridges, culverts, drains or passages as may be necessary for the purpose of making good any interruption to the use of such land or the amenities thereof or to the use of such customary track or path caused by the exercise of the powers granted in accordance with this Act:

(2)           The holder of a licence may for the purpose of exercising the powers conferred upon him alter the level or position of any pipe, conduit, watercourse, drain, or electric, telephone or telegraph wire or post, but shall give reasonable notice of his intention so to do to the person in control thereof and shall execute the work to the reasonable satisfaction of the person.

(3)            Where there is a danger that a tree standing near an oil pipeline may fall and damage such pipeline or an ancillary installation the holder of the may after giving notice to an administrative officer having responsibility in the area fell the tree or otherwise deal with it, and in such event shall upon application by any person interested in the tree pay such compensation as such officer shall consider necessary.

17.  (1)           A licence may be granted for such period not exceeding twenty years as the Minister may direct; and

(2)           Nothing in subsection (1) of this section shall affect the validity of any licence granted before the commencement of this Act for a period exceeding twenty years and every such licence shall, unless earlier revoked, be valid for the period for which it was granted.

(3)           The holder of a licence may at any time during the term of licence determine the licence in respect of all or any part of the land included therein by giving to the Minister not less than three months previous notice in writing to that effect.

(4)           Every licence shall be subject to the provisions contained in this Act as in force at the date of its grant and to such regulations concerning public safety, the avoidance of interference with works of public utility in, over and under the land included in the licence and the prevention of pollution of such land or any waters as may from time to time be force.

(5)           In the absence of express provision to the contrary, a licence shall deemed to include the following conditions to be performed and observed by the holder -

(a)           to commence the construction of an oil pipeline within a period to be specified by the Minister and to complete the same and all necessary ancillary installations with reasonable despatch, and to maintain the same during the currency of the licence;

(b)           to allow free access to any public officer authorised by or behalf of the Minister in writing, to enter and inspect any work, structure or thing made or done in accordance with the licence;

(c)           to indemnify the Minister against any claims arising from injury to any person or damage to any public or private property as a result of any act or thing done by the holder of the licence or his agents, servants or workmen in accordance with the licence;

(d)           not to assign, sublet, mortgage or otherwise part with the licence or any right or Interest thereunder without the previous consent in writing of the Minister.

(5)           Every licence shall be deemed to include a provision that any question dispute arising between the President or the Minister and the holder of the licence regarding the licence or any matter connected therewith shall if it cannot be resolved by agreement be referred to arbitration.

18.   (1)           An application may be made to the Minister with respect any pipeline constructed, maintained and operated in pursuance of a licence granted under this Act by any person other than the owner of the pipeline who seeks a right to have conveyed by the pipeline on his behalf any of the things mentioned in subsection (2) of section 11 of this Act which the pipeline is designed to convey.

(2)           Every such application shall be made in the prescribed manner and form containing the prescribed particulars.

(3)           The Minister shall consider every such application in consultation with the applicant and the owner of the pipeline to which the application relates.

(4)           If upon such consideration the Minister is satisfied that the pipeline could, without Prejudice to the proper and efficient operation thereof for the purpose of the conveyance on behalf of the owner, in the quantity required by him, of the thing which it is designed to convey, be so operated as to permit of the conveyance thereby on behalf of the applicant of the thing the right to the conveyance of which is sought by the applicant, the Minister shall declare that he is so satisfied.

(5)           Subject to the subsequent provisions of this section, the condition of the use of the pipeline by the applicant may be determined by agreement between the owner and the applicant and, failing such agreement, shall, subject as aforesaid, be determined by the Minister.

(6)           Where the Minister makes under subsection (4) of this section a declaration with regard to a pipeline, he may by notice served on the owner impose such requirements as he thinks it necessary or expedient to impose for all or any of the following purposes, namely -

(a)           securing to the person whose application resulted in the making of the declaration the right to have conveyed by the pipeline the thing to which the application related;

(b)           regulating the charges to be made for the conveyance of such thing by the pipeline on behalf of that person;

(c)           securing that the exercise of a right secured by virtue of paragraph (a) of this subsection is not prevented or impeded,

(7)           A notice served on the owner of a pipeline under subsection (6) may authorise such owner to recover, from the person to whom a right is secured by the notice by virtue of paragraph (a) of that subsection, payments of such amounts as may be determined in accordance with provisions in that behalf contained in the notice, being payments in consideration of the rights being secured to such person.

(8)           If the owner of a pipeline fails to comply with a requirement imposed by a notice served on him under subsection (6) of this section with reference to the pipeline, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding one thousand naira; and, if the failure continues after his conviction he shall be guilty of a further offence and liable, in respect thereof, to a fine not exceeding fifty naira for each day on which the failure.

(9)            The Minister may by notice to the owner of a pipeline whose failure to comply with any such requirement as aforesaid continues after his conviction of a first offence under subsection (8) of this section revoke the licence of such owner.

20.  (1)           If a claim is made under subsection (3) of section of 6 of this Act, the court shall award such compensation as it considers just in respect of any damage done to any buildings, lion crops or profitable trees by the holder of the permit in the exercise of his rights thereunder and in addition may award such sum in respect of disturbance (if any) as it may consider Just.

(2)           If a claim is made under subsection (5) of section 11 the court shall award such compensation as it considers just having regard to -

(a)           any damage done to any buildings, crops or profitable trees by the holder of the licence in the exercise of the rights conferred by the licence; and

(b)           any disturbance caused by the holder in the exercise of such rights; and

(c)           any damage suffered by any person by reason of any neglect on the part of the holder or his agents, servants or workmen to protect, maintain or repair any work, structure or thing executed under the licence; and

(d)            any damage suffered by any person (other than as stated in such subsection (5) of this section) as a consequence of any breakage of or leakage from the pipeline or an ancillary installation; and

(e)           loss (if any) in value of the land or interests in land by reason of the exercise of the rights as aforesaid,

(3)           In determining the loss in value of the land or interests inland of a claimant the court shall assess the value of the land or the interests injuriously affected at the date immediately before the grant of the licence and shall assess the residual value to the claimant of the same land or interests consequent upon and at the date of the grant of the licence and shall determine the loss suffered by the claimant as the difference between the values so found, if such residual value is a lesser sum.

(4)           No compensation shall be awarded in respect of unoccupied land as defined in the Land Use Act, except to the extent and in the circumstances specified in that Act.

(5)            In determining compensation in accordance with the provisions of this section the court shall apply the provisions of the Land Use Act so far as they are applicable and not in conflict with anything in this Act as if the land or interests concerned were land or interests acquired by the President for a public purpose.

(6)           If the total sum awarded by the court in accordance with this section exceeds an amount already offered to the claimant by the holder of the licence the court may order such holder to pay the costs of the proceedings; and if the sum so awarded does not exceed the amount offered by such holder the court shall either order the claimant to pay the cost of the proceedings or order each side to bear its own costs.

(7)            Compensation (if any) awarded by the court in accordance with this section shall be a sum of money payable forthwith or shall consist of periodical instalments or partly one and partly the other:

27.   (1)            If there shall be a breach of any of the terms or conditions upon which a licence has been granted the Minister may by notice in writing require the holder of the licence to remedy such breach within such period being not less than three months as may be specified in such notice.

(2)           If the holder of the licence shall fail within the period so specified to remedy such breach the Minister may by notice to the holder revoke the said licence, without prejudice to anything lawfully done thereunder and without prejudice to any claims for compensation against the holder made in accordance with the provisions of this Act.

28.   (1)            Upon the expiration or sooner determination of a licence, the holder of the licence shall before or within three, months after the termination of such licence be at liberty upon giving three weeks notice to the Minister to remove such pipeline and any ancillary installation to the extent that the Minister does not elect to purchase such pipeline or any such installation or any part thereof. In the event of the Minister and the holder of the licence not agreeing as to the purchase price the same shall be determined by arbitration.

(2)            The holder of a licence shall make good any damage done to the land included in the licence by removal of a pipeline or ancillary installation.

30.   (1)            A copy of any permit to survey and of any licence granted under this Act, certified by the Director-General having supervision over the department of the Federal Government carrying out the provisions of this Act to be a true copy, together with any plans or documents that may be prescribed by regulations made under this Act, shall be delivered by the holder of such permit or licence to the registry established under the Land Use Act for each State to which such permit or licence relates.

(2)            The provisions of the Land Use Act shall not apply to any such permit or licence, but any such permit or licence shall in so far as it affects any land take effect as against other instruments affecting the same land as though d had been registered under that Act upon the date of the grant of such permit or licence.

(3)            The grant of a permit or licence under this Act shall not be invalid by reason of any provision of the Land Use Act nor shall a permit or licence be subject to any provision of either of such Act.

31.   (1)           The applicant for a permit to survey shall pay a fee of twenty naira upon submitting his application, and a fee of fifty naira upon the grant of such permit.

(2)            The applicant for a licence shall pay a fee of fifty naira upon submitting his application, and a fee of two hundred naira upon the grant of such licence.

(3)           The holder of a permit shall pay a fee of fifty naira in respect of each variation of such permit.

(4)            The holder of a licence shall pay a fee of two hundred naira in respect of each variation of such licence.

(5)            An annual fee shall be paid on each licence of twenty naira per mile of the length of the pipeline subject to a minimum of two hundred naira.

(6)            The holder of a licence shall pay a fee of one hundred naira upon submitting his application for a restriction order under section 12 of this Act, and a fee of such amount as the Minister may determine not exceeding four hundred naira on such order being made.

(a)            the manner in which any application in accordance with the provisions of this Act shall be made and the forms to be used;

(b)            the manner in which the holders of exclusive prospecting licences, mining rights and mining leases granted under the Minerals Act or a licence granted under the Nigerian Coal Corporation Act or licences or leases granted under the Mineral Act may operate over an area subject to an oil pipeline licence and the manner in which the area covered by an oil pipeline licence may infringe on the area subject to an exclusive prospecting licence, mining right or mining lease or other licence or lease so granted;

(c)            measures in respect of public safety, the avoidance of interference wit} works of public utility in, over and under any land and the prevention of pollution of any land or water;

(d)            such matters relating to the construction maintenance and operation of oil pipelines as the Minister considers it necessary or appropriate to prescribe;

(e)           generally for carrying into effect the purposes and provisions of this Act.