Legal counsel: S’wak retained ownership of petroleum found within territory, gas distribution rights on M’sia Day

A file photo of an aerial view of Sarawak Legislative Assembly (DUN) Complex.
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By DayakDaily Team

KUCHING, Feb 15: Sarawak retained its legal rights and ownership over petroleum found within the onshore areas and in the subbed and subsoils of the continental shelf within its extended boundaries, as well as gas distribution rights, on Malaysia Day.

According to Sarawak’s legal counsel, Dato Sri JC Fong, when the concept of Malaysia was first proposed in 1961, Sarawak was a British Crown Colony, and the British had always stated their intention to prepare the people of Sarawak for self-governance.

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“As found by the Cobbold Commission, Sarawakians then did not want to change from one form of colonisation under London to another form of colonisation under Kuala Lumpur. This message was accepted by the governments in London and in KL.

“Thus, the Inter-Governmental Committee (IGC) was established to chart out the constitutional safeguards for the special interests and positions of Sarawak (and Sabah) when they become ‘federated’ with the States of Malaya to form the new Federation of Malaysia,” he said during a forum titled ‘Fifty Shades of Federalism’ at the Subang National Golf Club today.

The recommendations of the IGC, he said, were either incorporated into the Constitution of the new Federation or by way of legislative process, executive orders, and administrative action as provided by Article VIII of the Federation.

“Article III of The Malaysia Agreement (MA63) provides that on the date when the Federation comes into being, the State Constitutions of Sabah and Sarawak annexed to the MA63 will come into force.

“Articles 47 and 48 of the Sarawak Constitution read with the Malaysia Act 1963 of the United Kingdom, sovereignty over and assets and property rights and land in the Colony of Sarawak hitherto vested in Her Majesty Queen Elizabeth were never vested or transferred to the federation but vested and transferred in the State of Sarawak.

“That was done to ensure that Sarawak retains its sovereignty, rights to assets or property and land. On this point, the petroleum found in the seabed and subsoil of the continental shelf of Sarawak which was ‘Crown land’ were never vested by the British in the federal government,” he said.

He elaborated that the IGC, which comprised representatives of the Malayan Agreement, recommended that the legislative powers over electricity and distribution of gas shall belong to the Borneo States.

This recommendation was implemented under Article VIII of MA63 by executive order, namely the Borneo State (Legislative Powers) Order 1963 made by the Yang di-Pertuan Agong under Article 95C(1)(a), he said.

“On Malaysia Day, when the Federal Constitution, as amended by the Malaysia Act 1963, came into force, item 2(c) of the State List (List II) of Ninth Schedule, the legislative (and hence) executive powers over prospecting licences, mining leases and mining certificates (over minerals on Land) belong to the State.

“The federal powers under item 8(j) (Federal List) over development of minerals, mining, oil and oilfields is subject to item (2)(c) in the State List, meaning the development of minerals, mining of petroleum, oil, and oil fields is subject to prospecting licences, mining lease, and certificate issued by the State under State laws like the Oil Mining Ordinance (OMO),” he said.

Therefore, he concluded that on Malaysia Day, Sarawak actually retained its legal rights and ownership over petroleum found within the onshore areas and in the subbed and subsoils of the continental shelf within its extended boundaries which are Crown land vested in Sarawak as State land.

Additionally, he said, the law governing oil mining is the OMO, a State law that Sarawak can constitutionally pass under Item 2(c) in the State List.

At the same time, he said pursuant to the IGC Report and the Borneo States (Legislative Powers) Order, the Sarawak has the right over distribution of gas, allowing it to have control over the distribution of the natural gas produced in the State. — DayakDaily

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