Whether PDA1974 extended to Sarawak?
Emergency proclamation was declared by YDPA for the whole of Malaysia in 1969 including SS (EO 1969).
At all material times, Sarawak has its own laws to regulate mining, including oil & gas activities in Sarawak, which is Oil & Mining Ordinance 1958.
Then came Petroleum Development Act, a statute, passed by Parliament in 1974 (PDA1974) to vest all oil & gas activities in Malaysia exclusively to Petronas.
Since, the establishment of PDA1974 by Parliment done while EO1969 still in force in Malaysia, it was too extended Sarawak by virtue of Article 150 of the Federal Constitutuon (FC) without the need for it to be adopted by Sarawak bypassing the requirement of Article 76 FC.
However, the position was changed in 2011 when the Fed Govt under Najib's administration was under pressure to abolish the Internal Security Act (ISA). In 2011, the Fed Govt agreed to abolish ISA, and in doing so, the EO1969 was also revoked.
Blessing to Sarawak, Federal Govt at that time did not realise the detrimental big effect of revoking the EO1969 to the application of PDA1974 to Sarawak.
What is the effect of that revocation of EO1969 to PDA1974?
It simply means the "special pass" given to PDA1974 by virtue of EO1969 to extend its application to Sarawak bypassing Sarawak DUN as required by Article 76 of FC was no longer exist or valid.
It follows, for PDA1974 now to extend its application to Sarawak, it would need to be adopted by Sarawak DUN as required by Article 76 of FC. DUN Sarawak has not adopted the application of PDA1974. As it stands now, PDA1974 has no application to Sarawak.
The argument that the then Chief Minister Tun Rahman had consented and surrendered such oil & gas rights to Petronas exclusively must fail for reason that it was not resolved or passed by DUN Sarawak as required by the Constitution. It is plainly unconstitutional for a person, be it a Chief Minister, to unilaterally surrender Sarawak's rights without being resolved or passed by Sarawak DUN.
Further, to support Sarawak's stand, Sarawak Oil Mining Ordinance, 1958 (OMO1958) a pre-Malaysia law has never been repealed and it shall continue to be valid and effective as State law on equal standing with Federal law under the provisions of Malaysia Act.
OMO1958 established Sarawak's authorities over oil & gas activities in Sarawak. All mining, including oil & gas activities, are under the State List and subject to OMO1958 that regulate the issuance of permits and licenses for such activities.
Sea Territorial Act 2012 ia another statute passed by Parliament to supressed Sarawak's rights. It has the effect of reducing the Sarawak's sea territorial boundaries to only 3 nautical miles from the original 200 nautical miles from the coast.
Since this STA2012 affects the right of Sarawak and for it to be applicable to Sarawak, it must be adopted and passed by Sarawak DUN as required by Aritcle 76 of FC. Sarawak DUN never adopts and does not recognise STA2012.
To conclude, oil & gas activities in Sarawak are under Sarawak's authorities, and this is not open to negotiation with Federal Govt or Petronas.
Hope this will clarify.
Tq.
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