(1)  A permittee, lessee, or licensee shall carry out all petroleum exploration operations and operations for the recovery of petroleum in the permit area, lease area, or licence area in a proper and workmanlike manner and in accordance with good oil-field practice and shall secure the safety, health, and welfare of persons engaged in those operations in or about the permit area, lease area, or licence area.

(2)  In particular, and without limiting the generality of subsection (1) , but subject to any authorization given or requirement made by or under this Act or any directions given under this Act, a permittee, lessee, or licensee shall –

(a) control the flow and prevent the waste or escape in the permit area, lease area, or licence area of petroleum or water; and

(b) prevent the escape in the permit area, lease area, or licence area of any mixture of water or drilling fluid with petroleum or any other matter; and

(c) prevent damage to petroleum-bearing strata in an area, whether within the adjacent area or not, in respect of which the permit, lease, or licence is not in force; and

(d) keep separate –

(i) each petroleum pool discovered in the permit area, lease area, or licence area; and

(ii) such of the sources of water, if any, discovered in that area as the Minister, by instrument in writing served on that person, directs; and

(e) prevent water or any other matter entering any petroleum pool through wells in the permit area, lease area, or licence area except when required by, and in accordance with, good oil-field practice.

(3)  A pipeline licensee shall operate the pipeline in a proper and workmanlike manner and shall secure the safety, health, and welfare of persons engaged in operations in connection with the pipeline.

(4)  In particular and without limiting the generality of subsection (3) , a pipeline licensee shall prevent the waste or escape of petroleum or water from the pipeline or from any secondary line, pumping station, tank station, valve station, or water line.

(5)  A person who is the holder of a special prospecting authority or an access authority shall carry out all petroleum exploration operations in the area in respect of which the special prospecting authority or access authority is in force in a proper and workmanlike manner and in accordance with good oil-field practice and shall secure the safety, health, and welfare of persons engaged in those operations in or about that area.

(6)  Any person –

(a) being a licensee or permittee, fails to comply with subsection (1) or (2) ; or

(b) being a pipeline licensee, fails to comply with subsection (3) or (4) ; or

(c) being the holder of a special prospecting authority, fails to comply with subsection (5) –

is guilty of an offence and is liable on conviction to a fine not exceeding 100 penalty units.

(7)  It is a defence if a person charged with an offence against subsection (6) , or a defendant in civil proceedings arising out of a failure by the defendant to comply with a provision of this section, proves that he took all reasonable steps to comply with that provision.