OIL PIPELINES ACT

Section 18: Use of oil pipeline by a person other than the owner.

1956Section 18 of 34Federal Republic of Nigeria

(1) An application may be made to the Minister with respect to an oil 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 is related;
(b)
regulating the charge 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,
but requirements imposed for the purpose specified in paragraph (a) of this subsection shall be so framed as, in the Minister's opinion, to secure that compliance therewith will not prejudice the proper and efficient operation of the pipeline for the purpose of the conveyance on behalf of the owner thereof, in the quantity required by him, of the thing which it is designed to convey.
(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 continues.
(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.

Cite this section

Section 18, OIL PIPELINES ACT (1956).

https://repo.podus.ai/laws/oil-pipelines-act/section/18/