Issue

Issue	Concern	Status
1. Approval of Costs
	The budget and cost approval, and cost variance processes are tedious, time consuming and a subject of much debate � which need to be streamlined and made painless
2. Timeline of approval process
	For time bound contracts � time bound approvals are critical. Set time frames � deemed approvals � stopping clock for enquiries � deemed approval documents � are some of the ideas which need to be explored in this context.
3. Marketing Rights
	Lack of free / deep market � Government constraints � Imposition of Utilization policy � are matters of concern to the industry
4. Technical assessment
	What kind of information needs to be reviewed by Government Agencies � Independence and capability of the assessing agency and the time taken for assessment are matters of concern and discussion.
5. Empowered IM Group
	Inter ministerial issues need to be speedily resolved and a mechanism needs to be created to resolve these in a defined timeframe.
6. Exploration Holiday
	Global shortage of rigs, high prices, manpower issues are causing unprecedented delays in exploration programs. An exploration holiday, as already granted in US and some other countries needs to be considered to resolve the issue.	1. Representation made to DGH and MOPNG. 2. Draft policy suffers from lacunae 3. Awaiting final decision
7. Essentiality Certificates
	Issue of SOP�s for essentiality certificates is felt, to avoid individual interpretation and re-inventing of wheel
8. Customs Inspection & Appraisal
	Lack of clear guidelines results in non uniform procedures, which end up causing delays.
9. MOHA Compliance of e-clearance
	e-clearance in MOHA and MOD shall greatly speed up time and effort required for different clearances.
10. Delays in Pre-NELP blocks & Cess/Royalty reimbursement
	A delay in decision on Cess and Royalty is causing delayed and stalemated MC�s for Pre NELP Blocks. Result is reduced production, reduced recovery and sometimes a lost well.	1. MOPNG appraised of the issues
2. Environmental Clearance for Exploration
	Current EC procedures could cause substantial delays, without any value added from delayed decisions. Modified system needs to be implemented to fast track at least the exploration phase.	1. MOEF appraised of the issue
3. Forest Clearance
	Forest clearance procedure needs to be simplified, as it has many repetitive and serial steps which cause long delays.
4. Service Tax
	Service tax adds to exploration costs, cannot be recovered in case of non – recovery and upsets the fiscal stability provisions. In case of discovery, it adds nothing to the exchequer. Exemption for upstream is desirable	1. MOPNG/MOF appraised of the issue
5.Evacuation from Small fields
	Small fields are dependent on the whims of Government nominees, for evacuation. They being large buyers are relatively unaffected by these off-takes. With a history of many stoppages in the past, a policy initiative is desirable.	1. AOGO has made recommendations to MOPNG
6. Mineral Oil Definition
	Because of a lack of definition in clause 12 of IT act, issues have arisen for exemption status of gas	1. MOPNG and MOF appraised of the issue.
7. IT Section 46 Clarifications
	Because of a drafting oversight, some Pre NELP PSC�s are unable to enjoy the intended benefit.
8. OALP
	Working group shall define the desirables for the forthcoming OALP
9. Operating Environment
	Pooling of members experience to improve the efficiency, transparency and levelled treatment of upstream operating environment.
10. Flexibility of Tax Holiday
	Full intended benefit cannot be availed, without a flexibility to choose the exemption period.	1. MOPNG & MOF appraised.
11. Customs List 12 & 13 amendments
	List needs to be amended	1. MOPNG & MOF appraised
12. Infrastructure Status for E & P
	E&P fulfills all the pre-qualifications used for above classification , and should be so declared
13. CAG Audit
	This has never been envisaged in PSC and should not be imposed
14. National Data Repository
	Unanimously agreed to be highly desirable at the earliest � but much delayed and poorly funded activity.