Petroleum (Exploration, Development and Production) Act (No. 3).

This Act provides rules relative to petroleum activities, including licensing, exploration, development, production and cessation of petroleum activities or decommissioning and seeks to establish an effective legal framework and institutional structures to ensure that the exploration, development and production of petroleum resources of Uganda is carried out in a sustainable manner that guarantees optimum benefits for all Ugandans, both the present and future generations and to ensure transparency and accountability in the conduct of all activities regulated under this Act. The Act also seeks to ensure public safety and protection of public health and the environment in petroleum activities.
A licensee and any other person who exercises or performs functions, duties or powers under this Act in relation to petroleum activities shall comply with environmental principles and safeguards prescribed by the National Environment Management Act and other applicable laws. Waste management licences shall be granted by the National Environment Management Authority (NEMA). A petroleum production licence shall require the licensee to carry out an environmental impact assessment.
The Act provides for restrictions of the rights of licensees in respect to land on which petroleum activities are carried out. A licensee shall not exercise any right under a licence - within fifty metres of any land which has been cleared or ploughed or otherwise bona fide prepared for the growing of agricultural crops or on which agricultural crops are growing; upon any land from which, during the year immediately preceding, agricultural crops have been reaped; or upon any land which is the site of or which is within one hundred metres of a cattle dip-tank, dam or water used by human beings or cattle. A land owner in an exploration or development area shall retain the right to graze stock upon or to cultivate the surface of the land insofar as the grazing or cultivation does not interfere with petroleum activities or safety zones in the area. The rights conferred by a licence shall be exercised reasonably so as to affect as little as possible the interests of any land owner of the land on which the rights are exercised; and petroleum activities shall be carried out in a proper manner. Subject to section 135 and to any law relating to acquisition of land, a holder of a petroleum production licence may, if he or she requires the exclusive use of the whole or any part of a block in a development area, obtain a lease of the land or other rights to use it upon such terms as to the rent to be paid for the land, the duration and extent or area of the land to which the lease or other right of the lease shall relate as may be agreed upon between the holder of a licence and the land owner. Development in a national park o wildlife reserve requires the authorization of the Uganda Wildlife Authority, whereas development in a forest reserve requires the authorization of the National Forestry Authority.