Nienu seeks review on Nagaland sharing oil royalty with Assam

Kohima: Leader of NPF Legislature Party, Kuzholuzo Nienu, on Tuesday raised concern over Nagaland government sharing oil royalty with Assam government from oil wells within Naga villages, and implored the legislative assembly to review the Act.

Nienu was addressing the house on the last day of the first session of the 14^th Nagaland Legislative Assembly, while participating in the general discussion on the budget for the year 2023-2024.

The NPF leader maintained that he had submitted a letter to Secretary of Geology & Mining department on October 19, 2022, urging the latter not to proceed with signing of Memorandum of Understandings (MOUs) – Bipartite MoU and Tripartite MoU –wherein he also cautioned that “Signing of these would be the gravest mistake in Naga economic history.”

But despite his appeal, Nienu said he was shocked when he came to know on March 27 that the state Chief Secretary, J Alam, had already communicated to his Assam counterpart on March 16, 2023.

 “Why should the state government share with Assam the oil & gas from Tokishe, Pihekhu and Nikihe which are purely Naga villages under Niuland District?” Nienu questioned while adding that the remaining oil-bearing fields in the so-called Disputed Area Belt (DAB) are also almost under Naga villages.

The NPF leader disclosed that during the two-day Assembly break (March 17 and the 18^th), he had personally visited the DAB and found that out of the four wells one was still operational and gases were being tapped, though the state government was reported to have stopped extraction in March 2021.

Asserting that the elected members should not allow the state to share revenue with Assam when the oil fields are under the state of Nagaland, he suggested that Nagaland Government should sit across the table with the Government of Assam and work out on the contentious “disputed areas.”

He was of the view that revenue from oil extraction from the disputed areas can be shared by both the states while revenue from oil wells which fall under Nagaland should come to the state government.

The NPF MLA also said that in his 2022 letter to the Secretary, Geology & Mining, he had implored for immediate oil exploration in the state during the last assembly, but not as per the present Bipartite MoU and Tripartite MoU.

Nienu said his contention against the Bipartite MoU is Article 2.7 of the MoU which mentions “ad valorem royalty at the special rate of 2% over and above the applicable rates.” (The present rates are 12.3% for crude oil and 10% for natural gas).

Further, he added that the under the interim arrangement, the Government of Nagaland has little to benefit. Taking into consideration Article 371 (A) of the Constitution, Nienu said Government of Nagaland should find a bigger agreement where it can be a bigger stakeholder to get more revenues.

Towards this, he implored the Chief Minister and the members of the house to review the Oil and Gas Act.

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