A changed perspective

Nagaland sits atop an estimated 600 million metric tons of crude oil, a vast reserve that has remained largely unexploited. Apart from exploratory and trial operations conducted by the Oil and Natural Gas Corporation Limited (ONGC) in the early 1970s, no significant efforts have been made to tap into this potential resource. ONGC’s initial exploratory operations soon transitioned into a trial phase, during which hundreds of metric tons of crude oil were transported to nearby refineries in Assam. However, there are concerns that this activity was marred by deception, as the Nagaland government failed to properly monitor the extraction process. The absence of oversight enabled ONGC to operate without full accountability, ultimately paying a meager sum of Rs. 33 crore as revenue to the state-an amount calculated unilaterally by the corporation. With no effective monitoring mechanisms in place, Nagaland had little leverage to demand a fairer share.By 1994, growing opposition from various organizations forced the state government to halt ONGC’s operations. However, the consequences of the abandoned oil wells, particularly in Changpang and Tsorri villages, have been severe. Years of neglect have led to oil leakage, contaminating soil and groundwater, posing environmental hazards, and endangering local communities. Had the state government recognized these risks earlier, it could have ensured ONGC took preventive measures to mitigate the damage. Today, the environmental devastation in the affected areas is estimated to be worth over Rs. 100 crore, as vast tracts of agricultural land and groundwater sources have suffered irreversible damage.Despite these challenges, the Nagaland government has long maintained a laissez-faire approach to oil exploration. Successive elected representatives have hesitated to push forward a clear policy, largely due to the prevailing sentiment that decisions regarding oil and gas should be tied to the broader issue of Naga sovereignty. Under Article 371A of the Indian Constitution, Nagas enjoy special provisions that safeguard their ownership of land and resources, along with their traditional cultural, economic, and judicial practices. This unique status means that no parliamentary law can override their rights unless the state assembly explicitly agrees.After nearly two decades of inaction, the Neiphiu Rio-led Naga People’s Front (NPF) government introduced the Nagaland Petroleum and Natural Gas Regulation (NPNG) in 2012. However, this legislation faced opposition from the Union Petroleum Ministry, which argued that only Parliament has the authority to regulate oil operations under Entry 53 of List I of the Seventh Schedule, as well as the Mines and Minerals (Regulation and Development) Act of 1957. The central government’s stance effectively rendered the NPNG Act redundant. Even after the BJP came to power in 2014, the legal position remained unchanged, reinforcing the central government’s control over oil and mineral regulation. The debate over oil exploration in Nagaland resurfaced in April 2023 when the Union Ministry of Environment, Forests, and Climate Change (MoEFCC), perhaps with an aim to benefit Assam more than Nagaland, granted permission for petroleum exploration in the Disputed Area Belt (DAB) between the two states. Discussions in the recent state assembly centered mainly around oil and gas exploration. It is also evident that public perception has shifted when political complexities during five decades hindered oil extraction but today, there is growing emphasis on revenue generation and economic benefits. This changing attitude underscores the urgent need for a well-structured policy that balances economic aspirations with environmental responsibility and local rights.