ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet has rejected objections of Law Ministry and Khyber Pakhtunkhawa (KP) government over allocation of gas at wellhead from OGDCL's dormant fields, official sources told Business Recorder.

Subsequent to the passage of the 18th Constitutional Amendment, Petroleum Ministry had submitted a summary to the ECC in January 2012 for allocation of gas from Nur, Bagla, Jakhro and Sara west fields to the Government of Sindh at wellhead with conditions.

However, the ECC was informed on May 15, 2012 that a series of meetings took place between OGDCL and Government of Sindh to decide the modalities, but no decision could be reached because of the demand of Government of Sindh to either transfer the lease to them after cancellation or allocate the hydrocarbon at the lowest price ever received by OGDCL.

Meanwhile, in the wake of severe gas shortfall in the country, Petroleum Ministry in consultation with OGDCL has explored various other options for development of dormant fields so that gas from those fields could be allocated to SSGCL/other companies/consumers located in Sindh. As such, Ministry of Petroleum sought reversal of the ECC decision of January 25, 2012.

During the ensuing discussions, it was stated that Sindh has verbally agreed to the proposed reversal of the ECC decision. It was, however, pointed out that a reference has been made to the meetings held with Sindh and the agreement of Sindh to the proposal, but no written consent has been placed on record.

It was explained that legally there was no such requirement as the dormant fields vested in the OGDCL.

The representative of the Government of Khyber Pakhtunkhwa argued that under article 154 of the Constitution, matters related to mineral oil and natural gas, having been included in Part-II of the Federal Legislative List, fall in the domain of the Council of Common Interests (CCI) and accordingly the Economic Coordination Committee of the Cabinet was not the competent forum to take a decision in these matters.

He further stated that 'day to day working/matters' referred to in the case titled M/s Gadoon Textile Mills v/s WAPDA (1997-SCMR-641) referred to those matters where decisions are required to be taken at ministries' level and those matters where approval of some higher forum was required, are not covered under 'day to day working/matters'.

All such cases fall in the domain of the CCI. Secretary Law and Justice Division, while endorsing the viewpoint of the Government of Khyber Pakhtunkhwa, stated that all matters listed in Part-II of the Federal Legislative List contained in the Fourth Schedule of the Constitution are the domain of the CCI. Attention of the meeting was also drawn to the opinion of the Law and Justice Division contained in that Division's letter of February 03, 2012, wherein it was clearly stated that affairs related to day to day affairs of the Federal government and related institutions are not required to be placed before the CCI.

During discussion, ECC observed that the issue under consideration did not involve any legislative exercise. It was a purely administrative matter involving reversal of its earlier decision and as such this matter can be decided by the ECC.

After detailed deliberations, ECC approved allocation of gas at wellhead from OGDCL's dormant fields subject to no objection of Sindh.

"We have received ECC decision on Friday and now we are seeking NoC from Sindh," said an official of Petroleum Ministry.-MUSHTAQ GHUMMAN