Library / Midstream Petroleum (Host Communities Development Trust) Regulations 2024
Midstream Petroleum (Host Communities Development Trust) Regulations 2024

Page 17 of 29
B 905
25.—The Board of Trustees shall in each year allocate from the Fund, a
sum equivalent to —
(a)  75% to the capital fund out of which the Board of Trustees shall
make disbursements for projects in each of the host communities as may
be determined by the management committee in furtherance of the objectives
set out in section 234 of the Act, provided that any sum not utilised in a
given financial year shall be rolled over and utilised in subsequent year;
(b)  20% to the reserve fund, which sums shall be invested for the
utilisation of the trust whenever there is a cessation in the contribution
payable by the licensee; and
(c)  an amount not exceeding 5% to be utilised solely for administrative
cost of running the trust and special projects, which shall be entrusted by
the Board of Trustees to the licensee, provided that at the end of each
financial year, the licensee shall render a full account of the utilisation of
the fund to the Board of Trustees and where any portion of the fund is not
utilised in a given year, it shall be returned to the capital fund.
26.—(1)
Money standing to the credit of the Fund shall be utilised in
accordance with these Regulations and the constitution of the Trust.
(2)  Money in the capital fund shall be disbursed for projects in each of
the host communities as shall be determined by the Board of Trustees in
accordance with these Regulations and the development plan as approved by
the Authority.
(3)  Money in the reserve fund shall be invested by the Fund Manager in
accordance with these Regulations, for utilisation of the trust in the event of a
cessation of contribution payable by the licensee in accordance with regulation
25(b) of these Regulations.
(4)  Money in the administrative expense fund account shall be utilised
solely for administrative costs in accordance with regulation 25(c) of these
Regulations.
(5)  Administrative costs shall consist of reasonable —
(a)  out-of-pocket expenses for the Board of Trustees;
(b)  remuneration for executive members of the management committee;
(c)  out-of-pocket expenses for non-executive members of the
management committee;
(d)  out-of-pocket expenses for members of the advisory committee;
(e)  fees for services rendered by  the Fund Manager;
(f )  fees payable to auditors appointed; and
(g)  costs necessary for administration of the trust and the Fund.
Allocation
of fund
Utilisation
of the Fund