Work practices and directions

(1) Every contractor shall, in carrying out petroleum operations, always act in accordance with generally accepted practices in the international petroleum industry. (2) Where the Minister considers that a contractor has not acted in accordance with such practices and in particular, with the conservation and work practices as provided for in section 24 of the Act, he may notify such contractor in writing accordingly and require him to show cause, within such reasonable time as the Minister shall specify, why he has failed to act in accordance with such practices. (3) Where, within the time specified in any notice issued under subregulation (2) above, the contractor fails to satisfy the Minister that he has acted in accordance with such practices or that his failure to so act is justified, the Minister may direct the contractor to take such steps as may be necessary to ensure compliance therewith. (4) Any contractor who fails to comply with a direction given under subregulation (3) above, commits an offence and is liable on summary conviction to a fine not exceeding US$5,000. (5) Where proceedings are instituted for an offence under subregulation (4) above, it shall be a sufficient defence if the contractor satisfies the court that he forthwith took all reasonable steps in accordance with accepted practices in the international petroleum industry to comply with such direction. (6) Where a contractor fails to comply with a direction to him under subregulation (3) above, the Minister may cause to be done all or any of the things required by such direction. 20 Petroleum (7) Any cost or expenses reasonably incurred by the Minister under subregulation (6) above shall be a debt due to the Government by the contractor to whom the direction was given and shall be paid into the Consolidated Fund. (8) Nothing in this regulation or in any direction given thereunder shall be construed as requiring any contractor to do anything which is not, or to refrain from doing anything which is, in accordance with generally accepted practices in the international petroleum industry.