Streamline approvals for exploratory drilling, states told

The Union environment ministry has streamlined the approval process for surveys and exploratory drilling in forest areas to facilitate mineral exploration, according to a letter to principal secretaries and additional chief secretaries (forests) from all states and Union territories (UTs) last month.

HT reported on August 5 that the FAC (forest advisory committee) of the ministry exempted surveys involving drilling and felling of up to 100 trees for the prospecting of hydropower and other developmental projects in forest areas from obtaining prior forest clearance.

The FAC noted that such preliminary drilling is crucial for project design, preparation of a detailed project report and estimating the financial provisions of the proposed development project.

Now, the ministry has issued detailed guidelines and timelines for state governments or UTs to permit such projects. It has asked states to authorise the nodal officer (dealing with land diversion under the Van (Sanrakshan Evam Samvardhan) Adhiniyam “to grant permissions” to proposals of survey and exploratory drilling in a forest area involving drilling of a 25-bore hole of 4-inch diameter per 10sq km, 80 shot hole of 6.5-inch diameter per sq km and/or felling of 100 trees in the entire prospecting/survey area.

The divisional forest officer, within a period of one month, after receiving of the proposal, shall record his observations and recommendations and directly forward the online application to the nodal officer along with a demand for making the payment of net present value (NPV) and other compensatory levies (to be paid against diversion of forest land), as applicable, the letter said.

The nodal officer, after receipt and examination of the proposal from the divisional forest officer, within a period of 15 days, shall give permission, through the Parivesh portal along with a demand for making the payment of NPV and other compensatory levies, the letter added.

The letter said the ministry of mines and secretary general, Federation of Indian Mineral Industry, recently requested the environment ministry to streamline the approval process for proposals pertaining to surveys and exploratory drilling in forest areas.

The user agency, in this case the company conducting drilling or surveying, after receiving the approval from the nodal officer, within a period of 15 days, shall deposit the compensatory levies (for planting of trees against loss of trees from the forest). In case, the user agency fails to make payment against the demand raised within 15 days, 12% interest per month shall be levied on the amount not paid in time, the letter said. The divisional forest officer, in pursuance of the approval granted by the nodal officer and after deposition of the compensatory levies, will allow the company to undertake survey or exploratory drilling.

Exemption to exploratory drilling and surveys was a key amendment made under the Van (Samrakshan Evam Samvardhan) Adhiniyam, 1980 passed last year.

The new guidelines seek to boost production of all minerals while oil and gas exploration in India is being boosted through a recently introduced amendment.The Oilfields Amendment Bill, 2024 was passed in the Rajya Sabha last week. It aims to attract investment and regulate the exploration and extraction of natural gas and petroleum. The bill expands the definition of mineral oils to include: (i) any naturally occurring hydrocarbon, (ii) coal bed methane, and (iii) shale gas/oil. It clarifies that mineral oils will not include coal, lignite or helium.

The bill empowers the central government to make rules on several matters related to oil and gas exploration and production. These include: merger and combination of petroleum leases, (ii) sharing of production and processing facilities, (iii) obligations of lessees towards protecting environment and reducing emissions among others. It also decriminalises various offences of exploring, prospecting, and production without a valid lease, according to PRS Legislative Research.

“We had sought streamlining and relaxation of environmental permits for all minerals. This will help exploration of iron ore, bauxite, coal, non-metallic mineral and all other critical minerals. For oil and gas, the streamlining is being done through an amendment which separates the oil and gas sector from the mining sector completely,” said an industry body member who declined to be quoted.

Experts clarified that the authority to permit or not permit such projects still lies with the states. “The use of the term ‘shall give permission’ in reference to the state’s nodal officer can be construed as an imposition on the state forest department to grant approval, thereby curtailing its authority to reject a proposal. Section 2 of the Van Adhiniyam merely stipulates that the Union government’s permission is required in addition to that of the state or any other competent authority before diverting forest land for non-forest purposes. The primary authority to either reject or grant such permission, even under the framework of the Van Adhiniyam, lies exclusively with the state,” said Debadityo Sinha, lead, climate & ecosystems initiative at Vidhi Centre for Legal Policy.