In recent rounds sum fixed for initial period and then escalated to a maximum to encourage earlier drilling. In frontier areas level of fees is lower. Approval criteria related to good oilfield practice and maximum economic recovery. Government can require increase in proposed capacity and access to pipelines by third parties. Code of Practice whereby pipeline owners publish indicative tariffs for third party use on non-discriminatory basis.
Government has powers to regulate depletion rates in national interest.
Powers generally not employed. Generally burden was increased when oil prices rose. Since 1983 burden for new developments has been reduced. For new fields developed since March 1993 neither royalty nor PRT are payable. Loan interest not deductible.