Delta State Oil Producing Areas Development Commission Law, 2015

DELTA STATE OIL PRODUCING AREAS DEVELOPMENT COMMISSION LAW, 2015

1. Short Title and Commencement. This Law may be cited as the Delta State Oil Producing Areas Development Commission Law, 2015 and shall be deemed to have come into force on the 6th day of August, 2015.

2. Interpretation. In this Law, unless the context other requires: "Auditor-General of the State" means Auditor-General (State); "Board" means Governing Board of the Commission established in section 4 of this Law; "Chairman" means Chairman of the Board; "Commission" means the Delta State Oil Producing Areas Development Commission established by section 3 of this Law; "Communities" means Oil and Gas Producing Communities; "Ethnic Nationalities" means the Ijaws, Itsekiris, Urhobos, Tsokos and Ndokwas from Delta State; "Governor" means the Govemor of Delta State; "Impacted Community" means any community that is situate within 5 kilometre square diameter to any oil and gas exploring, producing and processing facility; "Member" means a Member of the Board and it includes the Chairman; "Managing Director" means the Managing Director of the Commission; "Oil Producing Areas" means Oil and Gas Producing and impacted Communities in the State; "Quantum" means verified Oil and Gas Production figures obtained from NNPC, DPR and NAPIMS subject to annual review; "State" means Delta State of Nigeria; "The House" means the Delta State House of Assembly.

3. Establishment of the Commission. (1) There is hereby established a body to be known as the Delta State Oil Producing Areas Development Commission. (2) The Commission shall: (a) be a body corporate with perpetual succession and common seal; and (b) may sue and be sued in its corporate name.

4. Composition of The Board. The Governing Board of the Commission shall consist of: (i) the Chairman; (ii) the Managing Director; (iii) four (4) Executive Directors; (iv) nine (9) representative of Oil Producing Areas in the State, at least 2 (two) per Senatorial District; (v) two (2) ex-officio members namely: (a) representative of the Ministry Finance; and (b) representative of the Ministry of Economic Planning

5. Qualification of Members. The Chairman, Members, the Executive Directors and the Managing Director of the Commission other than the ex-officio members shall be indigenes of the Oil producing cornmunities of the State.

6. Secretariat. (1) The Commission shall have its Head Offce at Warri. (2) There shall be an Area Office in each of the Oil Producing Local Government Areas in the State.

7. Appointment and Tenure of office. (1) (a) the Chairman and other Members of the Board shall be appointed by the Governor subject to the confirmation of the House. (b) the appointment of the Chairman, Members, the Managing Director and the Executive Directors shall be on rotational basis amongst the Oil producing areas of the State. (c) in compliance with paragraph (b) of subsection (1) above, any oil Producing nationality that has produced or is producing a Chairman of the Commission shall not succeed itself until the rotational circle amongst the oil producing ethnic nationalities is completed. (2) The Chairman and other members, including the ex-officio members of the Board shall hold offce for a single tenure of three years.

8. Remuneration. There shall be paid to every member of the Board such remunerations, salary and allowances as are obtainable in Commissions of equal status in the State.

9. Supervision and Control. The Commission shall in the performance of its functions under this Law subject to the directions, control and supervision of the Governor.

10. Schedule. The supplementary provisions contained in the schedule to this Law have effect with respect to the proceedings of the Board and other matters contained therein.

11. Cessation of Membership. The office of the Chairman or a member of the Board shall become vacant if (i) he resigns his membership by notice in writing to the Governor and that member shall on the date of receipt of the notice by the Governor cease to be a member; (ii) he is adjudged or declared bankrupt under any law in force in any part of Nigeria; (iii) under any Law in force in Nigeria, he is adjudged to be a lunatic or otherwise declared to be of unsound mind; (iv) he has absented himself from three consecutive meetings of the Board without a just cause; (v) he is otherwise disqualified by any Law in force in the State; and (vi) he is removed from office by the Governor subject to the approval of the House. 12. Dissolution of the Board. The Board shall be dissolved by; (a) the Governor subject to a simple majority of the House; or (b) the House upon a resolution of 2/3 majority of members.

13. Functions of Commission. The Commission shall: (i) Receive and administer exclusively the fifty percent (50%) of the thirteen percent (13%) Oil Derivation Fund accruing to the State for: (a) the rehabilitation and development of Oil producing Areas in the State, and (b) other development projects as may be determined from time to time by the Commission (ii) liaise with the relevant Federal and State Government Authorities and oil prospecting and producing companies on the control and effective methods of tackling the problems of coastal erosion, oil pollution, spillages and other ecological/environmental problems in the Oil Producing Areas of the State. (iii) ensure fair and equitable distribution of developmental projects in the Oil Producing Areas of the State; (iv) ensure the judicious utilization of the fund accruing to the Commission; (v) ensure that not less than 3% and not more than 5 % of derivation fund accruable to the Commission be used for investment; (vi) enlighten the Communities in the Oil Producing Areas of the State on the functions; policies and activities of the Commission; (vii) execute such other works and projects and perform such other functions which in the opinion of the Commission are necessary for the sustainable development of the Oil Producing Areas of the State.

14. Powers of the Board. The Board shall have powers to: (i) manage and supervise the affairs of the Commission; (ii) enter into contract as may be necessary or expedient for the discharge of its functions and ensure the efficient performance of the functions of the Commission in accordance with government financial regulations; (iii) establish such and maintain each Number of departments as it may deem fit for the effective discharge of its functions; (iv) pay the staff of the Commission such remuneration and allowances as appropriate; (v) make rules and regulations for carrying out the functions of the Commission; and (vi) do such other things as are necessary and expedient for the efficient performance of the functions of the Commission.

15. Appointment and Qualification of the Managing Director and Executive Directors. (1) The Managing Director and the Executive Directors who shall be indigenes of Oil Producing Communities shall be appointed by the Governor subject to the Confirmation of the House, and the appointments shall be in such a manner as to ensure that each Oil Producing Ethnic Nationality shall have at least the Managing Director or one of the Executive Directors position. (2) The Managing Director and the Executive Directors shall: (a) have such qualifications and experience as are appropriate for persons required to perform the functions of those offices under this Law and must be university graduate or its equivalent or not less than 10 years; and (b) hold offices on such terms and conditions as to emolument, conditions of service as may be specified in their letters of appointment. (3) The appointments in subsection (1) of this section shall be on a rotational basis among the Oil Producing Areas of the State; provided that any Oil producing area that has produced or is producing a Managing Director or Executive Director shall not succeed itself until the rotational circle among the oil producing areas is completed. (4) The Managing Director shall be Chief Executive and Accounting Officer of the Commission.

16. Powers/Functions of the Managing Director. The Managing Director shall subject to the general direction of the Board, be responsible for (a) the day to day administration of the Commission; (b) keeping the books and proper records of proceedings of the Commission; and (c) the administration of the Secretariat of the Commission and the general direction and control of all other employees of the Commission. 17. Establishment of Directorates. (1) There shall be in the Head Office of the Commission, the following Directorates: (a) Finance and Administration; (b) Project; and (c) Social Services Development. (2) An Executive Director shall head a Directorate and shall carry out such other functions as may be assigned by the Board.

18. Appointment of Aides and Assistants. (1) (a) The Commission shall have power to employ directly such number of staff as it may require; or second from any civil or public department of the state, such number of employees to assist the Commission in the discharge of any its functions under this Law. (b) Pay to persons so employed such salaries and allowances as it may determine from time to time, provided, that such salaries and allowances are not less than what obtains in the Public Service of the State. (2) persons employed by the Commission shall in respect of their service in the Commission be entitled to pensions, gratuities and other retirement benefits as obtains in the Public Service of the State. (3) (a) the Chairman and the Managing Director shall be entitled to three Aides as follows: (i) two Special Assistants one of whom shall be appointed from amongst the staff of the Commission; and (ii) one Personal Assistant (b) the Executive Directors shall be entitled to one Special Assistant and one Personal Assistant (c) the Members of the Board other than the ex-Officio Members, shall be entitled to one Personal Assistant each. 19. Funds and Accounts (1) The sources of funds of the Commission shall be: (a) fifty percent (50%) of the thirteen percent (13%) Derivation Fund or any other percentage (%) approved accruing to the State from the Federation Account; (b) any other source of fund accruable to it under any law in force in the State; and (c) all other assets that may from time to time accrue to the Commission. (2) The Commission may with the approval of the Governor accept gift, donations, grants, land and any other testamentary disposition on such terms and conditions as may be specified, provided that such terms and conditions are not onerous and/or in conflict with the effective performance of the functions of the Commission. (3) The funds shall be managed in accordance with the rules made by the Commission subject to the financial regulations applicable in the Public Service of the State and without prejudice to the generality of the power to make rules under this sections, the rules shall in particular contain provisions: (a) specifying the manner in which the assets of the Commission are to be held: and regulating the mode of payment into and out of the funds; and (b) requiring the keeping of proper account and records for the purpose of funds. (4) The Managing Director of the Commission shall before each financial year prepare estimates of recurrent and capital expenditure, and when approved by the Board, shall forward them to the Governor who in turn shall submit same to the House for scrutiny and approval. (5) The Managing Director of the Commission shall keep proper accounts and records in relation thereto. (6) The Board shall prepare and submit a quarterly report on the activities and administration of the Commission to the Governor. (7) The Accounts of the Commission shall be audited annually by Lhe Auditor-general of the State and the audited report shall be submitted to the House not later than 30th June of the succeeding year.

20. Expenditure of the Commission. The commission may from time to time apply the proceeds of the fund established pursuant to section 19 of this Law to: (i) the cost of administration of the Commission; (ii) the payment of salaries, fees and remunerations; allowances, pension and gratuities payable to members and employees of the Commission; (iii) the payment for contracts, including mobilization fluctuation, variations, legal fees and cost on contract administration; (v) the payment for purchases; undertake such other activities as are connected with all or any of the functions Of the Commission under this Law; and (vi) undertake the execution of projects for the benefit of the Oil Producing Areas and Communities for distribution on the basis of production quantum.

21. Borrowing Power. The Commission may with the consent of the Governor subject to the ratification of the House, borrow on such terms and conditions such sums of money as the Commission may require in the exercise of the functions conferred on it under this Law.

22. Limitation of action Against the Commission. (1) Notwithstanding the provision of any other law, no cause of action shall be instituted against the Commission, or any member of the Commission or any employee of the Commission in respect of any duty performed or any authority in any court, unless such action is commenced within three (3) months next after the act, neglect or default complained of is caused. In the case of a continuous damage or injury such action shall lie within three months from the abatement of such damage or injury. (2) No suit shall be commenced against the Commission before the expiration of a period of one (1) month after written notice of intention to commence the suits shall have been served upon the Commission by the intending plaintiff or his agent, and the notice shall clearly and explicitly state the cause of action, the particulars of the claims, the name and place of abode of the intending plaintiff(s) and the relief which he claims.

23. Service of Summons. The notice referred to in section 22(2) of this Law and any summons, notice or any other documents required or authorized to be served upon the Commission under the provisions of this Law or any other enactment or Law may be served by delivering the same to the Chairman or the Managing Director of the Commission or by sending it by registered post addressed to the Managing Director at the Head office of the Commission.

24. Restriction on Execution against the Property of the Commission. In any action or suit against the Commission, no execution or attachment or process in the nature thereof shall be issued against the Commission and any sum of money which may be the judgment of the court be awarded against the Commission shall subject to any direction given by the court where notice of appeal has not been given by the Commission, be paid from the general reserve fund of the Commission.

25. Indemnity of Member of the Commission and Employees of the Commission. Every member of the Commission, agent, auditor or employee, for the time being shall be indemnified out of the assets of the Commission against any liability incurred by him in defending the Commission in any proceedings whether civil or criminal, if such proceedings are brought against him in his capacity as such member, agent, auditor or employee aforesaid.

26. Offices and Premises of the Commission. For the purpose of providing necessary offices and premises for the performance of its functions under this Law, the Commission may subject to the Land Use Act (a) purchase or take on lease any interest in land or other property; and or (b) construct offices and premises and equip and maintain same; and (c) sell or lease out any office or premises held by it.

27. Repeal of Cap. D32 of Laws of Delta State, 2006. The Delta State Oil Producing Areas Development Commission Law, Cap. D32 Laws of Delta State, 2006 is hereby repealed.

28. Savings. Notwithstanding the provision of section 27 of this Law, anything done or purported to have been done under the Delta State Oil Producing Areas Development Commission Law, Cap. D32 Laws of Delta State, 2006 remains valid, subject to the Provisions of this Law. DELTA STATE OIL PRODUCING AREAS DEVELOPMENT COMMISSION LAW, 2015 Section 10 SUPPLEMENTARY PROVISIONS RELATING TO THE COMMISSION

1. Meetings The Board shall meet for the conduct of its business at such time as it may determine.

2. Notice of Meetings. The Board shall meet: (a) Whenever it is summoned by the Chairman; and (b) If the Chairman is required to do so by notice given to him by not less than three (3) members.

3. Regulation and Standing Orders. The Board shall have power to regulate its proceedings and make standing orders for that purpose and subject to any standing orders made pursuant to section 4 of this schedule, may function notwithstanding:- (a) any vacancy in its membership or the absence of any member; (b) any defect in the appointment of a member; or (c) that a person not entitled to do so took part in its proceedings.

4. Quorum The quorum at any meeting of the Board shall be a simple majority of the members.

5. Co-opted Person Where standing orders made under section 2 of this schedule provide for the Board to co- opt persons who are not members of the Board such persons may attend meetings of the Board and advise it on any matter referred to them by the Board but shall not count towards a quorum and shall not be entitled to vote at any meeting of the Board.

6. Presiding Office at Meeting At any meeting of the Board, the Chairman shall preside but if he is absent, the members present at the meeting shall appoint a member among themselves to preside at the meeting.

7. Committees (1) The Board may appoint one or more committees to advise it on the exercise of its functions under this Law and shall have power to regulate the proceedings of its committees. (2) (a) The Committees appointed under this section shall consist of such member of persons as may be determined by the Board. (b) The decision of the committees shall not have any effect until it is confirmed by the Board. MISCELLANEOUS

8. Contract or Instruction or Arrangement (1) Any contract or instruction which if entered into or executed by a person not being a body corporate which would not be required to be made under seal may be entered into or executed on behalf Of the Commission by any person generally specifically authorized in that behalf by the Commission. (2) Any member of the Board or of a committee thereof, who has a personal interest in any contract or arrangement entered into so proposed to be considered by the Board or the committee thereof, shall forthwith disclose his interest to the Board or committee, as the case may be and shall not vote on any question relating to such contract or arrangement.

9. Seal (1) The fixing of the seal of the Commission shall be authenticated by the signatures of the Chairman and the Managing Director or any other member of the Commission authorized by the Board to act for that purpose. (2) Any document purporting to be a document duly executed under the Seal of the Commission shall be received in evidence and shall, unless the contrary is proved be deemed to be so executed.