Library / Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024
Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024

Page 21 of 35
 
 
 
 
Page 21 of 35 
 
(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) All 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 management 
committee in accordance with these Regulations and 
the 
development plan as approved by the Board of Trustees. 
 
(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 - 
(a) remuneration in form of sitting allowance for the Board of Trustees; 
(b) remuneration for the management committee; 
(c) remuneration in form of stipends for the advisory committee; 
(d) fees of the fund manager;  
(e) fees payable to auditors appointed; and 
(f) such other costs wholly reasonable and necessary for the 
administration of the Trust and the Fund. 
 
(6) Any money not utilised in administrative expense fund at the end of 
each year shall be remitted into the capital fund account.  
 
Utilisation of 
the Fund  
 
27. Withdrawals shall not be made from the Fund - 
(a) unless one of the signatories to the account authorising the 
withdrawal is the representative of the licensee; 
Withdrawals from 
the Fund