The President of Nagaland Congress – K. Therie asserted that the Memorandum of Understanding (MoU) signed with the Union Ministry of Petroleum and Natural Gas (MoPNG) is not acceptable, as the revenue sharing ratio between the state and Oil and Natural Gas Corporation (ONGC) is 22:78%.

According to a press release issued by the NPCC, “The split should be not less than 51% for the state. Special payment of 2% valorem should be in addition to the state’s 51%. There should be a clause where by the state government has authority to terminate or restrain. The state may like to examine MoUs of other nations. MoU between Ministry of Petroleum and Natural Gas of GOI and Nagaland state in regard to uniformity of royalty payment is not acceptable. We are not uniform with other states in view of Art.371(A) and therefore the MOU is a compromise. This is the reason we continue to struggle and the matter is still under negotiation.”

“In the matter of Art.371(A), ever since the Nagaland Ownership And Transfer Of Land And Its Resources Act 1990, was sent for the President’s assent, the matter has been in contest between GOI and the state. We have claimed the power to frame rules relating to Petroleum and Natural Gas belongs to Nagaland state in view of Art 371(A), Not withstanding anything in this constitution, no Act of Parliament shall apply to the contents of Art 371(A) unless the Legislative Assembly of Nagaland by a resolution so decides. As such, the Union List does not come in the way,” – the release further reads.

The release added that “Nagaland state government should stand by the above interpretation. In view of the stand, the notification issued under Schedule to the Oil Fields (Regulation and Development act 1948) in regard to fees and royalties are not applicable.”