Petroleum Tax Laws: Policies and Fiscal Systems

Discuss about the Petroleum Tax Laws for Policies and Fiscal Systems.

Answer:

Introduction

Petroleum revenue is of fundamental importance for oil producing countries to escape mismanagement and it is imperative that policies and fiscal measures to  be implemented  to have the capacity manage petroleum industry effectively and efficiently (Arbitration, 2007). However, many are times when petroleum laws are contested therefore the need to appoint arbiters for resolution of these disputes.

Any indication related to both the number of arbitrators and their selection, in accordance with the provisions of this Regulation and the appointment of arbitrator in cases required intervention center; comments relating to arbitration of petroleum tax laws, policies and fiscal systems are final after the ruling.

Composition of the Court

Article seven in chamber of commerce rules on arbitration includes the decision by parties on appointment, replacement and conformation of an arbitrator being final and needless of explanation.

Article eight stipulates the number of arbitrator in resolving of a dispute;

The number of arbitrators to resolve a dispute may be one or three.

In the absence of agreement between the parties on the of arbitrators numbers, the dispute shall be settled by only one arbitrator unless the chamber of commerce determines that the tribunal arbitral be composed of any three arbitrators (International arbitration, 1984). For parties in latter case, every party will be given only 15 days to appoint independent arbitrator, after notification receipt of the decision of the chamber in this regard, for confirmation. In the event that the parties should agree that the dispute will be resolved by one arbitrator, may appoint by common agreement for confirmation by chamber.

Arbitratration charges

Pursuant to arbitration rules, there must be a filing fee of us $3000. The filing fee is non –refundable. Advance on costs  comprises the advance fees on arbiters and shall be fixed by the arbitrations cost. Based on the amount to be claimed, the arbitrator shall set the administrative espenses and the rules requires that the amounts shall not esceed the claimants amount. It should also be noted that each party shall be liable to pay its equal share of the total costs advanced. A bank guarantee shall be posted if the amount exceeds the threshold amounts which is usually $ 500,000 and the court may modify the threshold according to articles 36(2) and articles 36(4).

Appointment, Confirmation and Acceptance of Arbitrators

Unless otherwise agreed by the parties, the chamber shall, to appoint or confirm one or more arbitrators as appropriate, consider the background such as the nationality of the different parts and the rest of the arbitral tribunal, should be collegial, also his availability and suitability of arbitrators who are chosen to conduct the arbitration in accordance with this Regulation.

In the event that the dispute be resolved by a single arbitrator, his nationality is different from the parties, unless the chamber deems otherwise after consultation with the parties, which may object on grounds. The same applies in the case of the president of a tribunal of three members.

In which there is no agreement on the appointment event will be the chamber who made the appointment of the arbitrator in question.

Every arbitrator must be and remain, at all times, independent and impartial party. In an arbitration tribunal of three arbitrators, if an arbitrator refuses to participate in the arbitration despite not the termination of their functions have been formally declared, the other members of the arbitral tribunal may continue the arbitral proceedings. If the arbitrators decide to continue with the arbitration proceedings, any decision, procedural order or award will be fully valid.

That said, the most important reform for Petroleum industry is referred to a comprehensive fiscal reform, which allows one to take the oil company of the federal budget and reinvest their income, making the opening of the oil industry competitive attractive to private investment.

Conclusion

Petroleum industry needs to rebuild its "fiscal cushions or pads and" as protection against possible negative shocks, under the fragile global economic environment. However, reconstruct the "fiscal buffers" can be a long and complicated process to address the decline in oil production in the medium term and spending. (Sarin & Sarin, 2010)

References

Arbitration. (2007). [Washington, D.C.].

Commercial arbitration. (1911). [New York?].

International arbitration. (1984). [London?].

Rules and by-laws of the Chamber of Commerce of Minneapolis, Minnesota. (1934). [Minneapolis, Minn.].

Sarin, H. & Sarin, M. (2010). Encyclopaedia of petroleum laws. New Delhi: Universal Law Pub. Co.