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 5 of 35

 
 
 
 
Page 5 of 35 
 
3. A licensee shall not later than 12 months from the commencement 
date of these Regulations incorporate a host community trust fund in 
accordance with the provisions of these Regulations. 
 
Incorporation of 
Host Community 
Trust Fund 
4. The Authority shall have powers to –  
(a) 
ensure implementation of proposed projects of 
midstream or downstream petroleum communities at all 
stages, which shall include project initiation, contract award, 
project execution and project closure. 
 
(b) 
conduct a periodic assessment of the performance of 
each fund using a performance matrix published on its 
website; 
 
(c) 
investigate 
cases 
of 
fraud, 
mismanagement, 
misappropriation, or misapplication of funds of the Trust; 
 
(d) 
initiate action to trace and recover the funds of the 
trust, where the funds are mismanaged, or misappropriated; 
and 
 
(e) 
set up a mechanism for members of the midstream 
petroleum host communities under a trust to report any 
incidents of fraud, mismanagement, misappropriation, or 
misapplication of the fund. 
 
Powers of the 
Authority 
 
5. (1) The licensee shall be responsible for ensuring compliance with 
these Regulations.  
 
(2) Where a licence is held by more than one licensee or a separate 
operator under a joint operating agreement or other agreement, the 
operator appointed under the joint operating agreement or other 
agreement, shall be responsible for compliance on behalf of the 
licensees. 
 
(3) Notwithstanding the provisions of sub-regulation (2) of this 
regulation, a licensee shall be liable for any failure on the part of the 
operator to comply with the provisions of these Regulations. 
 
Responsibility for 
Compliance