Section 217: Contravention and enforcement of conditions of leases, licences or permits where it appears.

1 Where it appears to the Commission or Authority that the holder of a lease, licence or permit is contravening, has contravened or is likely to contravene any of the conditions of the lease, licence or permit, the Commission or Authority, as the case may be, may publish a notice in a manner as it considers appropriate to draw the attention of other persons affected or likely to be affected by the contravention or threatened contravention of the lease, licence or permit -
a specifying the actual or potential contravention;
b directing the holder to do or not to do, the things specified;
c specifying the remedy and the timeframe for compliance; and
d notifying the holder of the lease, licence or permit of its intention to issue an enforcement order.

2 The holder of the lease, licence or permit and any other interested party shall be entitled to make representations against or in support of a notice published under subsection (1) on a date specified in the notice.

3 Where a holder of the lease, licence or permit fails to comply with a notice published under subsection (1), the Commission or Authority, as the case may be, may issue an enforcement order.

4 The Commission or Authority may not issue an enforcement order if the holder of the lease, licence or permit -
a is able to demonstrate to its satisfaction that it is not contravening or about to contravene a condition of a lease, licence or permit, or
b has ceased to contravene a condition of the lease, licence or permit:

Provided that where the earlier contravention was deliberate, the Commission or Authority, as the case may be, may, at its discretion, impose a penalty as prescribed by regulation.

5 A holder of a lease, licence or permit who fails to comply with the enforcement order under this section, contravenes the provisions of this Act and is liable as follows, the
a Commission shall revoke the permit or recommend to the Minister to suspend or revoke the licence or lease;
b Authority shall revoke the permit or recommend to the Minister to suspend or revoke the lease, licence; or
c Commission or Authority, as the case may be, shall impose any other penalty prescribed by regulations.

6 The penalty issued under subsection (5) may be reviewed in regulation, in order to reflect the effect of inflation or for other justified reasons.

7 The Commission or Authority, as the case may be, may order the sealing up of any premises, including any facility or plant engaged in petroleum operations, where there has been a contravention of this Act or any regulation.

8 Subject to any other provisions in this Act, any dispute between a lessee, licensee or permit holder and the Commission or the Authority shall be settled by the Federal High Court.