Obligations of contractor

(1) In addition to the provisions of section 17 of this Act, every contract shall require the contractor to undertake the following obligations, (a) to employ and train nationals of Belize in petroleum operations to the fullest extent possible with a view to the replacement of foreign personnel as soon as may be practicable, such training and employment to be carried out in accordance with a programme approved by the Minister; 16 (b) to maintain, and furnish to the Inspector, periodic reports, records, returns, samples and all borehole and field data concerning (c) to keep current financial and cost accounting records of with pertinent records and vouchers, during the term of the contract, in accordance with normal accounting in the international petroleum industry; (d) to permit the Government or its authorized representatives reasonable inspection and audit rights over all petroleum operations and over all records, reports and returns maintained or submitted to the Inspector; (e) to purchase Belizean goods and services, if, in terms of price, quality and availability, such goods and services are within such margins of competitiveness with imported goods and services as may be agreed in the (f) to expend not less than a specified amount of money and carry out not less than a specified minimum work programme in the contract area during the exploration period; (g) to present annually to the Inspector, complete work programmes and budgets for petroleum operations to be conducted for each year of the contract; (h) to report immediately to the Minister any discovery of petroleum, and supply a sample thereof to the Inspector within a reasonable time after the date of such discovery; 17 (i) in the case of a commercial discovery of petroleum, to delimit the area involved, develop the discovery and commence production with due diligence; (j) to appoint, in cases where the contractor is a person who is not resident in Belize or whose head office is elsewhere than in Belize, a representative and in his absence a replacement there for, with the following powers, (i) during the exploration period, full powers to accept service of documents or notices under this Act on behalf of the contractor; (ii) during the development and production period, full powers to represent the contractor in all matters relating to petroleum operations, including the obligations imposed by this Act; and (k) if so requested by the Minister, to supply to the Government out of any petroleum to which he is entitled pursuant to the contract such quantity of petroleum as may be required to meet the requirements of Belize for internal consumption, Provided that the quantity of petroleum to be so supplied by any contractor shall be determined on a basis that does not discriminate against any individual contractor and that the price there for shall be fair and reasonable. (2) A contractor shall also be required to maintain such insurance as a prudent operator would obtain in the circumstances. 18 (3) Any person who contravenes paragraph (d) of subsection (1) of this section, commits an offence and shall be liable on summary conviction to a fine not exceeding one thousand dollars ($1,000).