THE PETROLEUM ACT, 2008 ARRANGEMENT OF SECTIONS Sectton Tille PART I I'RELIMTNARY PROVISIONS L Short title. 2. Application. 3. Interpretation. PART II ADMINISTRATION AND REGULATION 4. Minister's superviliOI")' powers. 5. Functions of the Authority. 6. Offence for contravening Authority's direction. PART ill PETROLEUM OPERATING LICENCES 7. Obligation to obtain a licence. 8. Application for a licence. 9. Approval of application. 10. Duration oflicence. 11. Transferring of licence. 12. Suspension, revocation or termination of licence. PART IV APl'llOVAl OF WORKS FOR THE Ctention OCl:lll'S or continues and the court may order forfeiture of the petroleum, premises, vessels or vehicle used to the Government or otherwise deal wilh in such other manner as it thinks proper. (e) Dislrlbution 44.---( I) A person may distribute petroleum or petroleum products only if such petroleum or petroleum products conforms with the qual- ity, safety and environmental specification set by the Minister. (2) Subject to subsection (I), any person who- with (a) tempers with the quality of petroleum or petroleum products; quali~. (b) conduclS petroleum or petroleum products business with()llt safety equipment; or "'"' andemri- - (c) sells petroleum or petroleum products in unauthorized prem- ro-nmen- tal~- ises; commits an offence and shall be liable on conviction to a fine of not e!lceeding ten million shillings or to imprisonment for a term of five years or to both. -•- ing of 24 No. 4 Petroleum 2008 45. Notwithstanding any provision of this part, the Minister may, in consultRtion with the Authority make regulations prescribing the method whereby petroleum or petroleum products unfit for use can be rec:overed. PARTX OFFENCES AND PENALTIES Offence, 46. Any person who- {a) refuses, delays or fails 10 produce any documents or other information relating to petroleum Sllpflly operations and installations which he may be required to produce under this Act; (b) knowingly furnishes documents or od!er information which are false or misleading in any material aspect. whether upon demand or otherwise; (c) publishes or otherwise discloses any information in contra- vention of any provision of this Act; (d) resists, hinders or obslrucls an inspector or other officer of the Authority or any other person who aclS on behalf of the Authority, to enter or inspect any premises or 10 stop and = h any vehicle or to examine any books, accounts or other records or lo otherwise comply with his duties and rights under this Act; (d) refuses, delays or fails to comply with any order, prohibition, direc:tion, demand, requirement or notice lawfully made, served, published or otherwise given under this Act, commits an offence. 47.--(1) Any pe,son who commits an offence for which uo specific penalty is prescribed shall on conviction be liable to a fine not exceed- ing five million shillings or to imprisonment for a term not exceeding two years or to both. (2) Upon a second or subsequent conviction of any offence under this Act that person shall be liable to a fine of not less than seven mil- lion shillings or to imprisonment for a tenn of not less lhan three years or 1o both. No. 4 Petroleum 2008 25 48.-{J) Where a person chmged with an offence under this Act is a Joint lia- body corporate, every person who, at the time of commission of the bilizy offence was a director, manager or as the case may he an officer of such body corporate, may he charged jointly in the same proceedings with the body corporate. (2) Any partner in any firm shall he answerable and jointly and severally .liable for the acts or omissions of any other partner in the same finn in so far as they concern the firm. (3) Any employer who emplo~ in or for his operation or place of business an agent, cleik, servant or other person, shall he answerable and liable for any acts or omissions of such employees in so far as they concern the business of the employer. 49. Any consumer of petroleum products or any recognised con- loihation sumer organisation may initiate action against any licensee for offences under this A_!:t, if that consumer bad previously filed a com- .," aerie .. ,~~ plaint with the Authority and is aggrieved by the decision of the mm Authority in response to such complainL ,._ ,_ 50.-{1) Where any person has committed any offence under this ur.ditll! Part other than an offence under this Act the Authority may, subject to such directions as the Minister may give on that behalf, at any time ,,_ "'., prior to the commencement of the hearing by any court of any charge in relation to the offence committed, compound such offence aud order such person to pay such sum of money, not exceeding one half of the amount of the fine to which such person would have been liable if he had been convicted of such offence. (2) The Authority shall not e...ercise powers under this section unless the person concerned admits in writing that he has committed the offence for which he is charged. (3) Where the Authority compounds an offence under this section, then the order referred to in subsection (I) of this section shall- (a) he reduced in writing and there shall be attached to it the writ- ten admission and request referred to in subsection (2) and copy of such order shall he given, if he so l'IX[Uests, to the per- son who committed the offence; 26 No. 4 Petroleum , ... (b) specify the offence committed. Ille sum of money ordered to be paid, and the date or dates on which payment is lo be made; (c) be final and shall not, subject lo the provisions of subsection (3), be subject lo any appeal; (d) not be invalid by reason only of non-compliance with any direction given by the Minister; and (e) be enforced in the same manner as a decree ofa court for the payment of the amount stated in the order. (3) Where any person is aggrieved by any order made nnder sub- section (I), he may, within thirty days of such order being made, appeal against such order to the High Court, and the provisions of the Criminal Procedure Act shall apply in !he same manner to every such appeal as if it Whe an appeal against a sentence passed by a district court in the exercise of its original criminal jurisdiction. {4) Where the Authority compounds any offence under this sec- . lion, the person concerned shall not be liable to any prosecntion in respect of such offence and, if any such prosecution is brought in the eow1, it shall be a good defence for such p,mon to prove that such offence has been compounded under this section. PART XI DISPUfES SETTLEMENT Settle• 51.--{l) A dispute arising between licensees in petroleum supply ment of industry or between licensees and the Authority or any other dispute, Government authority relating to application of this Act may be brought before the Fair Competition Commission for mediation. (2) A dispute arising between the licensees in petroleum supply industry and the Authority regarding application of this Act may be brought before the Fair Competition ToDunal for deletminatlon. Petroleum 2008 27 52.---(1) Any person who is aggrieved by the decision of the Authority, may appeal to the Fair Competition Tribunal in BC<:ordance Fair with the provisions of Part XIII of the fair Competition AcL Competi• tion (2) Notwithstanding the right of appeal conferred by subsection Tribunal {I), any person aggrieved by an act of the Authority shall not have the obligation to refer the dispute to the Fair Competition Commission for mediation as a condition for being heanl by the Fair Competition Tribunal. PART XII M!SCELLANOUS PROVISIONS 53.---( 1) The Minister may make regulations generally for the better Reg1!1.- carryiog out of the provisions and purposes of this Act. lions (2) Regulations uniter this section shall be published in the Gai:e11e. 54. The Minister may, in consultation with the Minister responsible for food and the Minister responsible for land, make regulations pre- scribing the use of food crops and the use of land for production ofbio- fuel. 55.--1 I) The Petroleum {Conservation) Act is hereby repealed. '-' Cap. )92 (2) Notwithstanding the repeal of the Petroleum (Conservation) Act, all subsidiary legislation, rules or exemptions made or given or deemed to have been given or made under that Act shall be deemed to have been made or given under this Act, and shall remain in force until revoked by subsidiary legislation made under this Act or until other- wise expire or cease to have effect. - 56.---( I) Where any lawful act or thing required or permitted to be Tnm:ii- tional done by or under this Act was done before the effective date of this Act, it shall be deemed to have been done under or by virtue of this and sav- Act. •~ (2) The current participants in the supply chain shall, whether licensed or not under the Petroleum Rules, or any other applicable leg- islation, and within a year adjust their operations and facilities in order to comply with the provisions of this Act. 28 No, 4 Petroleum 2008 (3) Subject to subsectioo (2) after the el(!)iratio11 of the period, each participant in the supply chain shall apply for the licence and permit in accordance with this Act. Acti11g Cieri: of the Natuma/ Assembly