Provinces seek seats in OGRA

The Punjab government has asked the federal government to give representation to all provinces in the Oil and Gas Regulatory Authority (Ogra) along with federal representatives in a bid to deal more effectively with administrative matters in the hydrocarbon sector. The centre has sent a summary to the Council of Common Interests (CCI), seeking to exclude the role of provinces in day-to-day administrative affairs of the oil and gas sector. The summary has been circulated to the ministries of finance, planning, development and special initiatives, law & justice, Cabinet Division and Attorney General (Pakistan) along with provinces of Sindh, Punjab, Khyber-Pakhtunkhwa and Balochistan for views and comments. However, the provinces have objected to the proposal of bypassing the CCI while tackling every-day oil and gas-related administrative matters. The government of Punjab has partially supported the proposal and has stated that regulatory bodies should function independently in accordance with the prevailing laws, rules, regulations and policies. Furthermore, it said, there should be representation from all provincial governments and the federal administration in those regulatory bodies. If any provincial government has grievances about any regulatory or administrative decision, it may refer it to the CCI. The government of Sindh has objected to the proposal (iii) of the summary and stated that Article 172(3) envisaged vesting of oil and gas, lying within the province/territorial waters adjacent thereto, jointly and equally between the federal government and provinces. It confers equal title on provinces with the right to dispose of oil and gas with the federal government by becoming a co-licensor. Therefore, the proposal may be amended that all administrative matters about the management of entities operating in the oil and gas sector are within the exclusive jurisdiction of the federal government and the respective provincial government and need not to be submitted to the CCI. The government of Khyber-Pakhtunkhwa was of the view that the power of parliament could not be denied but in the present context, the parliament could not legislate contrary to the true letter and spirit of Article 172(3) of the Constitution. "There can be no cavil that Article 172(3) of the Constitution envisages the vesting of oil and gas resources within provinces or the territorial waters adjacent thereto, jointly and equally in the federation and concerning province(s)," it said. "As such, the provinces have an equal say as the federal government in deciding the fate of these resources. The federal government in the exercise of its executive powers is to act as a fiduciary under Article 172(3) for provincial rights and not as an absolute owner." The government of Balochistan conveyed that policy matters and amendments needed to be formulated with approval of the CCI and regulatory decisions should be taken by the regulator concerned in accordance with the rules and guidelines imparted at the CCI level. "Furthermore, excluding the CCI from the administrative matters is not tenable since the cumulative provisions of Article 154, 156 and 172(3), read with Entry 2 of the Fourth Schedule of the Constitution, provide for enhanced supervisory role of the CCI in the operational framework for mineral oil and natural gas," it said. "In terms of Articles 154 and 172(3) by the apex court, it falls within the domain of the CCI to deliberate upon and render appropriate policy guidelines on the scope and modalities of executive authority of the CCI/provinces in the operational and management framework for mineral oil and natural gas."