The Hides PDL 7 landowners thanked the Government and concerned stakeholders for releasing the overdue royalty and equity payment released early this month, however, they have brought to attention several demands.
In an interview, Umbrella Hides PDL 7 Association Inc. Chairman, Erick Ako Hawai said they laud the Government and all concerned stakeholders efforts in finalizing and finally paying out landowners dues but there are some issues, they must correct before future payouts.
On March 10, K33.7 million was paid to upstream PNG LNG Project landowners of Petroleum Development License (PDL 7) in Hela Province.
A total of K19.6 million was paid in cash directly into the beneficiary clan bank accounts comprised of 277 beneficiary clans and K14 million in project component made through the Mineral Resources Development Company.
These clans are grouped into six blocks that comes under five regions of Parepare, Ketereanda, Tawanda Tokaju, Timalia Kangulu, Middle and Tuguba.
He said these demands must be considered before future royalty payouts. These include;
- Review of the UBSA & UBBSA Agreements forthwith for the benefits.
- Remove the 28% royalty component given to the pipeline and plant site landowners capped in UBBSA.
- Review and remove unnecessary cost imposed by Exxon Mobil PNG Ltd such as CAPEX, OPEX and Premium on Capital Cost on the 2% royalty.
- Except the unnecessary Corporate Income Tax imposed on landowner royalty
- The landowners are only left with 0.5% of the royalty and need explanation for the 1.5%.
- We want a special review on the 2% royalty payments and demanding the Government to put hold the current royalty payments until further legal clearance on the validity and accuracy of the payments are justified.
- We want the 4.27 Kroton Equity be paid as cash component to compensate the loss on royalty for this period payments.
- We want new Board of Directors to be established for the Kroton Equity Company apart from the Block leaders represented in MRDC.
In stressing on the removal of 28 percent royalty component, Mr Hawai said the rightful landowners of the resources have been maginalised and the 28 percent of what is rightfully theirs was given away to plant site and pipeline landowners.
“According to Oil and Gas Act, royalties are only paid on wellhead value. We wellhead landowner leaders strongly believe that pipeline and plant site landowners are only entitled to rental.”
