Section 7: Oil pipeline licence.

(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 on 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 construct, 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 price 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.