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

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(3)  Where an act of vandalism, sabotage or civil unrest occurs that
causes damage to the facilities used in petroleum operations of the licensee
within the host communities or disrupts petroleum operations, the licensee
shall notify the Authority within 24 hours of the disruptive act.
(4)  A licensee shall within 15 days of the disruptive act, submit a report
on the disruptive act to the Authority and the Board of Trustees.
(5)  The report referred to in subregulation (4) of this regulation shall
contain —
(a)  a description of the disruptive act;
(b)  the area of the licensee’s operations affected by the disruptive act;
(c)  the extent of damage to the licensee’s facilities used in midstream or
downstream petroleum operations;
(d)  an estimate of the value of petroleum liquids spilled or natural gas
released as a result of the act;
(e)  the estimated cost of repair of damage to the licensee’s facilities
used in midstream petroleum operations, and where the damage requires a
replacement of the facility, the estimated cost of the replacement; and
(f )  in case of a shut-down of the licensee’s operations, the operating
expenditures incurred during the shutdown period;
(6)  The damage calculated shall not include loss of profits or other
losses not specifically included in this regulation.
(7)  The Authority shall, on the basis of the reports from the joint
investigation team and loss adjusters appointed by the licensee, determine
whether the disruptive act was due to technical or natural cause or third-party
interference and establish the costs and tax recovery and any adjustment
required in the cash flow.
39.—(1)
Where a licence is assigned, transferred or surrendered,
revoked, terminated or expired in accordance with the Act, the licensee shall
fulfil its surviving obligations and where these obligations have been complied
with, the licensee shall have no further obligations, partly or wholly, with respect
to the area that was surrendered.
(2)  Where a licensee adjusts its area of operations in a manner that
increases or reduces the host communities earlier covered by the trust, the
area of operations shall be considered adjusted for the purpose of calculating
the annual contribution to the Fund.
(3)  A licensee shall, in the event of the adjustment stated under sub-
regulation (2) of this regulation, apply to the Authority for its approval of the —
(a)  host communities that the licensee —
(i)  proposes to include in the trust, or
(ii)   no longer considers its responsibility;
Cessation of
licensee’s
interest