Purposive interpretation of pipeline law allowed water to be treated as a mineral and carried through existing pipelines.

A contextual and purposive reading of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 was applied to the incorporated definition of "minerals" from the Mines Act, 1952, and water was treated as falling within that definition because it can be obtained from the earth by drilling. The statutory scheme was therefore read to permit transportation of water through pipelines laid under the Act. The same scheme also allowed acts necessary for laying, maintenance and utilisation of the pipeline, so additional pipeline activity for carrying water was regarded as permissible without a fresh acquisition process.

---

---

Issues: (i) Whether water falls within the definition of mineral under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 so as to permit its transportation through pipelines laid under the Act; (ii) Whether, after right of user in land has vested under the Act, laying pipelines for carrying water can be treated as an act necessary for the utilisation of the pipeline under the Act.

Issue (i): Whether water falls within the definition of mineral under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 so as to permit its transportation through pipelines laid under the Act

Analysis: The definition of minerals in the Act adopts by incorporation the meaning assigned in the Mines Act, 1952. The incorporated definition in the Mines Act is wide enough to cover substances obtained from the earth by drilling and other similar operations, and water may be obtained from subterranean sources by drilling. The definition was introduced by amendment to enable transport not only of petroleum but also of minerals through pipelines. A contextual and purposive reading of the statutory scheme shows that the word mineral cannot be confined to the popular or common-man sense.

Conclusion: Yes. Water is a mineral for the purposes of the Act and may be transported through pipelines under the statutory scheme.

Issue (ii): Whether, after right of user in land has vested under the Act, laying pipelines for carrying water can be treated as an act necessary for the utilisation of the pipeline under the Act

Analysis: Section 7 permits use of land for laying pipelines and for doing any act necessary for the laying, maintenance and utilisation of such pipelines. Once pipelines were lawfully laid for transporting petroleum or minerals, carrying water for the efficient working of the gas processing plant was treated as connected with the utilisation of the pipeline within the statutory framework. The provision was therefore read to allow the additional pipeline activity without requiring a fresh acquisition process.

Conclusion: Yes. The proposed laying of pipelines for carrying water was held to be permissible as an act for the utilisation of the pipeline under Section 7.

Final Conclusion: The statutory scheme was held to permit transportation of water through the existing pipeline corridor, and the challenge to the notice failed.

Ratio Decidendi: Where a statute incorporates a technical definition from another enactment and the statutory object is to permit transport of petroleum and minerals through pipelines, the term mineral must be construed contextually and purposively, so as to include water capable of being obtained from the earth by drilling and to allow allied acts necessary for utilisation of the pipeline.

---