Sharing of royalty from oil & other mineral resources

A land blessed with natural richness, admired by people, loved and protected by the blood and tears of our ancestors, diverse tribes and languages and exquisiteness of festivals, a land we proudly call ‘Nagaland’. We all love our land and are ready to protect our land and its resources as our ancestors have done so. The Naga history has witnessed many transformations and episodes. The current issue on ‘ownership of land and its resources’ is another episode which we the present generation is to encounter and decide the future of our natural resources. As we all are aware that natural resources like minerals and petroleum are conventional source of energy or non-renewable and hence, the exploitation and use of it should be carefully studied and as far as possible minimize its use. A trivial mistake at present may consequence to an irreparable damage in the future. A corollary which not we, but, our future generations have to counter for their survival.
The word ‘oil’ just a three letter word but has almost same value as ‘diamond’. This oil has been the cause of many wars even in the developed and civilized nations of the world. The virus has touched our beloved land. It is sad but true and it is happening before our eyes. We all love our land and its resources and so are ready not to compromise. Custom is the source of our laws and since time immemorial we are governed by custom. Since time immemorial we neither require any permit nor pay taxes or royalty to any authority for the resources exploited from private land for instance, log, bamboo, coal, agricultural and forest production or any other resources grown and found in private lands. The uniqueness of our legal system is customary law and practices and this has been given Constitutional recognition under Article 371A of the Constitution of India. However, Article 371A endorsed to the Legislative Assembly of Nagaland the final policy decision making power unlike the custom and practices we have been practicing since time immemorial. Such system is based on modern Indian democratic principle and may not cater successfully to the aspirations and wants of the Naga people. It cannot be denied that the MLAs are elected by the people and represents the people’s interest but it also cannot be denied that there may be possibilities of misuse of Article 371A by the legislators. The rejection of the Women Reservation Bill by the Legislative Assembly of Nagaland on the ground that Naga customary law do not allow women in policy decision making is a blatant violation of Article 15(3) and 13 of the Constitution and a direct insult to the Naga women. There are historical and political reasons behind the INSERT IGNOREion of Article 371A and therefore should be respected and its use be irrespective of any discrimination and prejudice intentions.
It is Constitutional right that no person can be deprived of his property save by the authority of law even though the state is the dominion owner of the land and its resources. However, in the case of the Nagas, the land and its resources are owned by private individual and regulated by customary law. The Nagaland (Ownership and Transfer of Land its Resources) Act, 1990 hereinafter referred to as the said Act is an effort made by the Government of Nagaland to codify our customary law and which was assented by the Governor of Nagaland on 27th May, 1993 and published in the Nagaland Gazette extraordinary on 6th July, 1993. Henceforth, the customary law on ownership and transfer of land and its resources is statutory law and binding within the State of Nagaland. The said Act not only violates the customary rights of the land owners but is also inevitably biased depicting the egocentric interest of our legislators by making only the minerals and petroleum within the jurisdiction of the Act and left the other resources as it was. This clearly portrays the outlook of our Naga legislators that they are interested only in money and not for the welfare and protection of assets of the people.
The First Schedule of the said Act lays down the different amounts of royalty for different minerals to be paid to State Government. However, it fails to specify what kind of royalty has to be paid to the State Government i.e., royalty out of the royalty paid to the land owners by the company or royalty by the company to the State Government. In case if royalty out of the royalty paid to the land owners by the company the State Government seems to be greedy and fails to recognize the customary rights of the land owners. Even if the company pays to the State Government, the royalty to be paid to the land owners if fixed and the company may have to divide the royalty between the land owners and State Government. In both cases it cuts the share of the land owners. Hence, none of it is feasible. At the most, the land owners may get 10% of the total production at royalty from the company while it is evident that the State Government gets more than 8% of the total production at taxes alone. Thus, the question of charging royalty from land owners by the State Government is gluttonous and voracious. In India oil is sold and bought at international market price and hence, the table here shows the calculation of oil prices and royalty at current approximate international market price. The table here is an approximate estimate of taxation on oil and petroleum by the State Government of Nagaland.
The demand of the State Government to charge royalty from the land owners, if analyzed from point of view of Naga custom is not practicable because since time immemorial we have not paid any kind of royalty to any authority for the use and exploitation of resources found or grown in our private land. The same custom is given Constitutional recognition and the State Government should not try to alter our agelong preserved custom merely on the excuse of development of the State. Moreover, royalty is a share of the profit reserved by the owner for permitting another to use the property and in the case of Nagas, the individual land owners are the sole legitimate owner and so the royalty is paid to them. The land owner exists long before the State Government of Nagaland and just by mere virtue of being elected for a fixed term to legislate cannot obliterate the age old custom and Constitutional rights of the Naga people.
The constitutional recognition under Article 371A is a right and a freedom enshrined by the Constitution of India to the people of Nagaland. This right is the outcome of the Naga people’s demand and struggle and not the State Government of Nagaland and therefore this right exclusively vests with the Naga people. The State Government of Nagaland was not even born when Article 371A was INSERT IGNOREed in the Constitution of India by the Constitution (Thirteenth Amendment) Act, 1962. The claim of the State Government of Nagaland the right to legislate a statutory law for sharing of royalty is against the customary right of the Naga people. Nevertheless, Article 371A authorize the Legislative Assembly of Nagaland the right to legislate, the spirit behind such sanction of power is to protect the customs, practices, cultures, traditions and rights of the Naga people. The right to have full royalty from any profit generated out of the resources found in ones land or property is a custom and customary right since time immemorial. It is the duty of the State Government to protect such custom and rights of the people and uphold the principle and spirit behind Article 371A of the Constitution of India and not to jeopardize such noble principle and spirit of Article 371A of the Constitution of India.
     
(In the wake of the State Government intentions and plans to make a statutory law for sharing of benefit and royalty from the exploitation and sale of oil and other mineral resources found in our State and inviting public opinion on the same we (authors) share with the public and Government of Nagaland through your esteemed daily our opinions an d views on the same. We believe that this article would be informative to the public of Nagaland and as such would help the public and Government in bringing to a unanimous settlement for the development of the State and welfare of the public).



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