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WRIT OF SUMMONS MALAYSIA

IN THE HIGH COURT IN SABAH AND SARAWAK AT KOTA KINABALU

SUIT NO. ____________________________________

BETWEEN

LAHIRUL BIN LATIGU (NRIC NO. 760719-12-5747) ….. 1ST PLAINTIFF

MOHD JULPIKAR BIN AB MIJAN (NRIC NO. 810102-12-5459) … 2ND PLAINTIFF

ZAINAL BIN AJAMAIN (NRIC NO. 561019-12-5285) …. 3RD PLAINTIFF

JOSEPH WILFRED (NRIC NO. 691002-12-6025) …. 4TH PLAINTIFF

DULI @ DULLIE BIN MARI @ MARIE …. 5TH PLAINTIFF (NRIC NO. 510109-12-5027)

MICHAEL PETER GOVIND @ MICK GOVIIND …. 6TH PLAINTIFF

AND PETROLIAM NASIONAL BERHAD …. 1ST DEFENDANT

STATE GOVERNMENT OF SABAH …. 2ND DEFENDANT YANG AMAT ARIF TAN SRI DATUK SERI PANGLIMA RICHARD MALANJUM, P.S.M., S.P.S.K., S.S.A.P., S.I.M.P., S.P.D.K., P.G.D.K., CHIEF JUDGE OF THE HIGH COURT IN SABAH AND SARAWAK IN THE NAME AND ON BEHALF OF SERI PADUKA BAGINDA YANG DI-PERTUAN AGONG. To: (1) PETROLIAM NASIONAL BERHAD,

Level 2, Menara PERTONAS Kota Kinabalu, No. 2, Jalan Belia, Locked Bag No. 110, 88100 Kota Kinabalu, Sabah

(2) STATE GOVERNMENT OF SABAH

Menara Tun Mustapha, Teluk Likas Kota Kinabalu, Sabah

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To verify the true copy of the document received, please access this link. URL Link: http://www.highcourt.sabah.sarawak.gov.my/apps/highcourt/sabah/verify

Verification Code:12-263649-509144-502044

WE COMMAND you, that within FOURTEEN (14) days after the service of this Writ on you, inclusive of the day of such service, you do cause an appearance to be entered for you in a cause at the suit of the Plaintiffs all of Kota Kinabalu, Sabah. AND TAKE NOTICE that in default of you so doing the Plaintiffs may proceed therein to Judgment and execution. WITNESS MR AZHAHARI KAMAL BIN RAMLI, REGISTRAR OF THE HIGH COURT IN

SABAH AND SARAWAK the ________ day of ________________________________

____________________________ ___________________________________ MARCEL JUDE JOSEPH (2000) & CO DEPUTY/SENIOR ASST. REGISTRAR SOLICITORS FOR THE PLAINTIFFS HIGH COURT IN SABAH AND SARAWAK AT KOTA KINABALU

MEMORANDUM TO BE SUBSCRIBED ON THE WRIT The Writ may not be served more than six (6) calendar months after the above date unless renewed by order of court. The Defendant (or Defendants) may appear hereto by entering an appearance (or appearances) other personally or by a solicitor at the Registry of the High Court. A Defendant appearing personally may, if he desires, enter his appearance by post and appropriate forms may be obtained by sending Postal Order for RM_________ with an addressed envelope to the Registrar, High Court, Kota Kinabalu.

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STATEMENT OF CLAIM 1. The 1st Plaintiff is a person belonging to the State of Sabah and a citizen of

Malaysia and a businessman having a place at Lot 4, Tingkat 2, Block A, Riverside Plaza, Kingfisher Park, 88450 Kota Kinabalu, Sabah.

2. The 2nd Plaintiff is a person belonging to the State of Sabah and a citizen of Malaysia and a businessman having a place at Lot 4, Tingkat 2, Blok A, Riverside Plaza, Kingfisher Park, 88450 Kota Kinabalu, Sabah.

3. The 3rd Plaintiff is a person belonging to the State of Sabah and a citizen of

Malaysia and a businessman having a place of business at No. 16, Taman Sinar Baru, Jalan Kenawai 6A, 88450 Kota Kinabalu, Sabah.

4. The 4th Plaintiff is a person belonging to the State of Sabah and a citizen of

Malaysia and a businessman having a place at Kg Tebobon Bulat Inanam, Sabah.


Malaysia and a businessman having a place at House No. 8, Kg. Muhibbah, Petagas Putatan 88200 Penampang, Sabah.


Malaysia and a businessman having a place at Lot 4, Tingkat 2, Block A, Riverside Plaza, Kingfisher Park, 88450 Kota Kinabalu, Sabah.

7. The 1st Defendant is a company incorporated under the Company’s Act whose

registered office is situated at No.136, Jalan Pudu, Kuala Lumpur. 8. The 2nd Defendant is the lawful Government and authority for the State of Sabah in

the Federation of Malaysia. 9. On or about October 1974, Federal Parliament of Malaysia passed the Petroleum

Development Act 1974 which reads as follows:- “PETROLEUM DEVELOPMENT ACT 1974 (Act 144) An Act to provide for exploration and exploitation of petroleum whether onshore or offshore by a Corporation in which will be vested the entire ownership in and the exclusive rights, powers, liberties and privileges in respect of the said petroleum, and to control the carrying on of downstream activities and development relating to petroleum and its products; to provide for the establishment of a Corporation under the Companies


Act, 1965 or under the law relating to the incorporation of companies and for the powers of that Corporation; and to provide for matters connected therewith or incidental thereto. [Date of commencement: 1.10.1974 - PU(B) 501/74] as amended by Petroleum Development (Amendment) Act 1975 (Act A290) w.e.f. 1.10.1974 Petroleum Development (Amendment) Act 1977 (Act A382) w.e.f. 1.5.1975 and 1.10.1974 Petroleum Development (Amendment) Act 1985 (Act A613) w.e.f. 1.10.1974 Petroleum Development (Amendment) Act 1993 (Act A842) w.e.f. 5.2.1993 1. Short title and commencement

This Act may be cited as the Petroleum Development Act 1974 and shall come into force on such date as the Prime Minister may notify in the Gazette .

2. Ownership (1) The entire ownership in, and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether onshore or offshore of Malaysia shall be vested in a Corporation to be incorporated under the Companies Act 1965 or under the law relating to incorporation of companies. (2) The vesting of the ownership, rights, powers, liberties and privileges referred to in subsection (1) shall take effect on the execution of an instrument in the form contained in the Schedule to this Act. (3) The ownership and the exclusive rights, powers, liberties and privileges so vested shall be irrevocable and shall enure for the benefit of the Corporation and its successor. 3. The Corporation (1) Notwithstanding the provisions of section 22 of the Companies Act 1965 relating to the names of companies, the Corporation shall be styled as the Petroleum NasionalBerhad or in short form PETRONAS. (2) The Corporation shall be subject to the control and direction of the Prime Minister who may from time to time issue such direction as he may deem fit. (3) Notwithstanding the provisions of the Companies Act 1965 or any other written law to the contrary, the direction so issued shall be binding on the Corporation. 3A. Powers of the Corporation (1) In additional to all the powers of the Corporation as prescribed in its Memorandum and Articles of Association, the Corporation shall have the power to take over or acquire by agreement, assignment, purchase or by any other means the whole or any part of any commercial undertaking, business or enterprise of whatever form of any person or body of persons (corporate or unincorporate) and carry out or enter into


any activity, whether mentioned in this Act or not, which prior to such taking over or acquisition was carried out by, and for the purpose of, that undertaking, business or enterprise. (2) The powers conferred on the Corporation under subsection (1) shall be in addition to and not in derogation of any of the rights, powers liberties, privileges and benefits conferred on the Corporation by this Act or any other written law. [s3A inserted by Act A613] 4. Cash payment by the Corporation In return for the ownership and the rights, powers, liberties and privileges vested in it by virtue of this Act, the Corporation shall make to the Government of the Federation and the Government of any relevant State such cash payment as may be agreed between the parties concerned. 5. National Petroleum Advisory Council (1) There shall be established a Council to be known as the National Petroleum Advisory Council consisting of such persons including those from the relevant States as the Prime Minister may appoint. (2) It shall be the duty of the National Petroleum Advisory Council to advise the Prime Minister on national policy, interests and matters pertaining to petroleum, petroleum industries, energy resources and their utilization. 6. Prime Minister's permission required for downstream operations (1) Notwithstanding the provisions of any other written law, no business of processing or refining of petroleum or manufacturing of petro-chemical products from petroleum, may be carried out by any person other than PETRONAS unless there is in respect of any such business a permission given by the Prime Minister. [subs(1) amended by Act A290] (2) Any person who on the commencement of this Act is carrying on any business referred to in subsection (1) may continue to do so but shall, not later than six months from the date of the commencement of this Act, apply in writing to the Prime Minister for his permission referred to in subsection (1). [subs(2) amended by Act A290] (3) Subsection (1) shall apply to any business of marketing or distributing of petroleum or petro-chemical products; and any person who on the commencement of this subsection is carrying on any such business may continue to do so but shall, not later than six months from the date of commencement of this subsection, apply in writing to the Prime Minister for his permission referred to in subsection (1). [subs(3) inserted by Act A290] (3A) Subsection (3) shall not apply to any person who is licensed under the Gas Supply Act, 1993 to supply gas to consumers through pipelines. [subs(3A) inserted by Act A842]


(3B) For the purpose of subsection (3A), the terms "gas", "consumers" and "pipelines" shall have the same meaning assigned to them respectively by the Gas Supply Act 1993. [subs(3B) inserted by Act A842] (4) Where the Prime Minister grants his permission under this section he may, at his discretion, impose such terms and conditions as he may deem fit. [subs(4) inserted by Act A290] (5) Any person who acts in contravention of this section or fails to comply with any term or condition of any permission granted under this section shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a continuing offence he shall be liable to a further fine not exceeding one hundred thousand ringgit for each day or part of a day during which the offence continues after the first day in respect of which the conviction is recorded; and all machinery, tools, plant, buildings and other property or thing used or intended to be used in the commission of the offence and any petroleum or its products thereby obtained shall be liable to forfeiture. [subs(5) inserted by Act A290] (6) The Prime Minister may by notification in the Gazette exempt any business referred to in subsections (1) and (3) or any company or class of company carrying on any such business from the provisions of this section. [subs(6) inserted by Act A382] 6A. (Repealed) [s6A inserted by Act A290 and subsequently repealed by Act A382] 7. Power to make regulations The Prime Minister may make regulations for the purpose of carrying into effect the provisions of this Act and, without prejudice to the generality of the foregoing, such regulations may, in particular, provide for - (a) the conduct of or the carrying on of - (i) any business or service relating to the exploration, exploitation, winning or obtaining of petroleum; (ii) any business involving the manufacture and supply of equipment used in the petroleum industry; (iii) downstream activities and development relating to petroleum; (b) the marketing and distribution of petroleum and its products; (c) penalties in the form of a fine not exceeding one hundred thousand ringgit or imprisonment not exceeding five years or both such fine and imprisonment for breach of any of the regulations and for non-compliance with any term or condition of any licence, permission or approval issued or granted under the regulations; (d) the forfeiture of anything used or intended to be used in the commission of any such breach or non-compliance. [s7 substituted by Act A290]


7A. Delegation The Prime Minister may, by notification in the Gazette , delegate, subject to such conditions and restrictions as may be prescribed in such notification, the exercise of any of his powers or the performance of any of his duties under this Act, other than his powers and duties under sections 3(2), 5(1) and 7, to any person described by name or office. [s7A inserted by Act A290] 7B. Offences by bodies of persons and by servants and agents (1) Where an offence against this Act or any regulations made thereunder has been committed by any company, firm, society or other body of persons, any person who at the time of the commission of the offence was a director, manager or other similar officer or a partner of the company, firm, society or other body of persons or was purporting to act in such capacity shall be deemed to be guilty of that offence. (2) Whenever it is proved to the satisfaction of the court that a contravention of the provisions of this Act or any regulations made thereunder has been committed by any clerk, servant or agent when acting in the course of his employment the principal shall also be liable for such contravention and to the penalty provided therefor: Provided that nothing in this section shall be deemed to exempt the liability of the clerk, servant or agent in respect of any penalty provided by this Act or any regulations made thereunder for any contravention proved to have been committed by him. [s7B inserted by Act A290] 7C. Jurisdiction of courts Notwithstanding anything contained in any other written law to the contrary, a Sessions Court or, in Sabah and Sarawak, a Court of a Magistrate of the First Class, shall have jurisdiction to try any offence under this Act or any regulations made thereunder and on conviction to impose the full penalty therefor. [s7C inserted by Act A290] 8. Saving (1) Save for section 14 thereof, the Petroleum Mining Act 1966 shall not apply to the Corporation. (2) In the application of section 14 of that Act to the Corporation, any reference to the licensee shall be construed as a reference to the Corporation, and any reference to the exercising of any rights contained in the licence shall be construed as a reference to the exercising of the rights, powers, liberties and privileges vested in the Corporation by virtue of section 2(1) of this Act. [s8 substituted by Act A290]


9. Transitional (1) Any exploration licences issued and any petroleum agreements entered into pursuant to the Petroleum Mining Act 1966 and any licences, leases and agreements issued or made under any written law in force relating to prospecting, exploration or mining for petroleum shall continue to be in force for a period of six months from the date of the coming into force of this Act or for such extended period as the Prime Minister may allow. [subs(1) amended by Acts A290 and A382] (2) Where the six months' period has elapsed and no extension thereto under subsection (1) is allowed, the licences, leases or agreements mentioned in that subsection shall determine or cease to have effect and there shall be paid to the person whose rights under the licence, lease or agreement have been so determined, adequate compensation which may be in the form of a single sum or in the form of periodical payments of money or in such other form as may be determined by the Federal Government or under any arrangement agreed upon between such person and other person designated by the Federal Government. [subs(2) inserted by Act A382] 10. Definition For the purpose of this Act, the expression "petroleum" means any mineral oil or relative hydrocarbon and natural gas existing in its natural condition and casinghead petroleum spirit including bituminous shales and other stratified deposits from which oil can be extracted. [Ins. Act A382] SCHEDULE (Section 2(2)) GRANT OF RIGHTS, POWERS, LIBERTIES AND PRIVILEGES IN RESPECT OF PETROLEUM I, ...................................................................................................... .........................................................................................................on behalf of the Government of .............................................................. .............................on this ...........day of ..................197 ......... , hereby grant in perpetuity and convey to and vest in PETRONAS the ownership in and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether lying onshore or offshore of Malaysia. The grant, conveyance and vesting made hereunder shall be irrevocable and shall enure for the benefit of PETRONAS and its successor. IN WITNESS whereof I on behalf of the Government of ................................................................................................ hereunto set my hand the day and year first herein above written. ................................................... ................................................... on behalf of the Government of ...................................................


Witness's signature: ................................................... ................................................... _________________________________________________________ Act done or transaction carried out before enactment of this Act. (1) Every act done or transaction carried out by PETRONAS before the enactment of this Act that would have been lawful if this Act had been enacted and in force when such act was done or transaction was carried out is hereby declared to be and always to have been lawfully done or carried out by PETRONAS, and such act or transaction may be continued and dealt with under the principal Act as amended by this Act. (2) The provisions of this Act shall apply to all legal proceedings of whatever from or nature now pending, or which may hereafter be instituted, in any court. - Act A613 I, ............................................................... on behalf of PETRONAS hereby accept the grant, conveyance and the vesting made above. ............................................... ............................................... ............................................... Witness's signature. ............................................... ............................................... Done at ......................................................this ............................... day of......................................................................197............ 10. After the passing of the Petroleum Development Act 1974 on the 14th day of June

1976, the 1st and 2nd Defendants entered into the following agreement pursuant to section 4 of the aforesaid Act regarding the cash payment of 5 per cent of the value of the petroleum won and saved from areas in Sabah and sold by the 1st Defendant or its agents or contractors to be made by the 1st Defendant to the 2nd Defendant in return for the ownership and the rights, powers, liberties and privileges vested in respect of petroleum in the 1st Defendant. The said agreement reads as follows:-

AN AGREEMENT made this 14th day of June 1976 BETWEEN the Government of the State of Sabah (hereinafter referred to as the GOVERNMENT of the one part and Petroliam Nasional Berhad, a company incorporated under the Companies Act, 1965 whose registered office is situated at No. 136, Jalan Pada, Kuala Lumpur (hereinafter referred to as PETRONAS) of the other part.


WHEREAS – By the Petroleum Development Act, 1974, the entire ownership and the exclusive rights, powers, liberties and privileges of exploring, exploiting, winning and obtaining petroleum whether lying onshore or offshore of Malaysia is vested in PETRONAS; The vesting of the ownership, rights, powers, liberties and privileges hereinbefore mentioned has taken effect pursuant to the execution of the instrument in that behalf; and The GOVERNMENT and PETRONAS are desirous of entering into an agreement pursuant to section 4 of the aforesaid Act regarding the cash payment to be made by PETRONAS to the GOVERNMENT in return for the ownership and the rights, powers, liberties and privileges vested as aforesaid in respect of petroleum: NOW THEREFORE in return for the ownership and the rights, powers, liberties and privileges in respect of petroleum vested by the GOVERNMENT in PETRONAS. IT IS HEREBY AGREED as follows: (1) PETRONAS shall make to the GOVERNMENT cash payment in the form of yearly sum amounting to the equivalent of 5% of the value of the petroleum won and saved from areas in Sabah and sold by PETRONAS or its agents or contractors during the period provided in Clause 2. (2) The value to be applied for the purpose of subclause (1) of this Clause shall be the realized six-monthly average f.o.b. prize obtained by PETRONAS or its agents, (3) Any petroleum which is used by PETRONAS, its agents or contractors for the purpose of carrying on drilling and production operations shall be deemed to be sold for the purpose of calculating the cash payment under this Clause. 2. The cash payment payable under this Agreement shall be paid semi-annually. Payment in respect of petroleum won, saved and sold in the first half-year period shall be made on or before the first day of September and payment in respect of petroleum won, saved and sold in the second half-year period shall be made on or before the first day of March of the following year. 3. It is agreed and declared that the cash payment payable under this Agreement shall be payable only for so long as petroleum is obtained and shall not be so payable if petroleum ceases to be obtained due to any reason or cause whatsoever, in which case no payment by way of compensation shall be payable for the loss of the cash payment which would otherwise be payable under this Agreement. 4. It is further agreed that in consideration of the above premises, the GOVERNMENT hereby waives any right to royalty or any other payment payable pursuant to any oil mining lease, license or agreement under the Land Ordinance of Sabah or any other written law relating to petroleum for the time being in force in Sabah:


Provided that this Clause shall not apply where under any petroleum agreements made by the GOVERNMENT under any written law in force relating to petroleum, rents are payable to the State in respect of mining operations, provisions of living quarters and office premises and any other buildings whatever on State land and in such case where the petroleum agreements cease to be in force pursuant to the provisions of section 9 of Petroleum Development Act, 1974 such rents shall continue to be payable to the State by PETRONAS or its agents or contractors at a rate to be mutually agreed by the parties to this Agreement. 5. In this Agreement, the word “petroleum” has the meaning assigned to it by the Petroleum Development Act, 1974. 6. The marginal notes are for conveniences only and do not form part of this Agreement. 7. This Agreement shall be expressed in Bahasa Malaysia and in the English Language. In case of doubt the text of the Agreement in the English language shall prevail. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed. SIGNED, SEALED AND DELIVERED ) For and on behalf of the Government ) Of the State of Sabah by ) DATUK HARRIS ) BIN MOHD. SALLEH, the ) Honourable the Chief Minister of ) Sabah in the presence of: ) THE COMMON SEAL OF PETROLIAM ) NASIONAL BERHAD was hereunto ) Affixed in the presence of: )

11. In June 2008 it was reported in the media under the title that “Sabah has potential

of becoming biggest oil and gas producer” whereunder it was reported that “Sabah can be a major economic force in the country if the plan to build a 300mw power plant by Petronas and Yayasan Sabah as well as the emphasis on downstream oil and gas industry with the proposed construction of a petrochemical plant in Kimanis materialise. The announcement on the two mega projects by Prime Minister Datuk Seri Abdullah Ahmad Badawi has brought about much promise of a vibrant future as this will create substantial economic and industrial spin-offs by opening doors to business opportunities and providing employment opportunities.


Assistant Minister of Resource Development and IT, Donald Mojuntin also said Sabah has the potential of becoming the biggest oil and gas producer not only in Malaysia, but in the whole of South East Asia. It has the potential to produce 1 million barrels of oil a day,” he said. “The estimated reserves from the present Sabah oilfields is 1.4 billion barrels of oil and 7.7 trillion scf of gas.” With that in mind, it is only logical and fair that Petronas should develop the oil and gas industry in Kimanis. Donald said Petronas had done so in Terengganu, transforming, Kertih, a former fishing village to a vibrant and thriving oil and gas industrial site. It has also benefitted Bintulu and Miri in Sarawak . “With the Prime Minister’s announcement, at last PETRONAS is showing that it is sensitive to the economic wellbeing of Sabah and the needs of her people,” he said. Donald also said that PETRONAS would support those who were willing to invest for the long term to build capacity and human capital. Meanwhile, Donald suggested that the State Government relook and restudy the 1976 agreement with Petronas to find out whether natural gas extraction was also part and parcel of the oil agreement. It is possible that the 5 per cent oil royalty is calculated solely on the volume of crude oil production. Anyone who appreciates the economic and developmental needs of the State has to ask the question whether Sabah has thus far received anything from the sales of gas whether in LNG or in other processed form.”

12. Meanwhile in November 2011 it was again reported in the media that “Petronas

Discovers Substantial Oil Reserves Offshore Sabah, Malaysia” whereunder it was said “Malaysia’s national oil corporation PETRONAS Carigali Sdn Bhd , has encountered substantial oil reserves within Block 2G-2j, offshore Sabah. The finding was made at the Wakid-1 well , about 100km northwest of the capital of Sabah state in East Malaysia, Kota Kinabalu. Malaysian oil giant sad that the well was spudded on 30 May 2011 and was completed on 4 July 2011. It reached a total vertical depth of 3,330m and confirmed the presence of significant oil, as well as some gas-bearing, reservoirs.

Three production tests were conducted in three different reservoirs which flowed oil at a combined maximum rate of 8,200 barrels per day. Current preliminary estimation of the hydrocarbon-in-place from this discovery is 227 million barrels of oil equivalent (mmboe), with expected upside potential.

PETRONAS Carigali plans to further appraise the discovery in the near future. Wakid-1 is the second well drilled in Block 2G-2J since the award of its Production Sharing Contract (PSC) in October 2010. The block’s first well, Tambuku-1, was drilled early this year, but produced a only minor gas discovery. PETRONAS


Carigali is the sole equity holder of the PSC for the block. Petronas has recently signed an agreement with Shell for two 30-year production sharing contracts (PSCs) for enhanced oil recovery (EOR) projects offshore Sarawak and Sabah. The main objective of the agreement is to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields”.

13. The said agreement dated the 14th day of June 1976 is null and void and ultra

vires article 74 of the Federal Constitution and the Ninth Schedule of the Federal Constitution.

PARTICULARS – NINTH SCHEDULE Federal powers: In schedule 9. List of the Federal Constitution, the following topics are assigned to the Federal Government: a) Except as to State rights over permits and licenses, the Federal Government has rights over development of mineral resources, mines, mining, minerals and mineral ores, oils and oil-fields, petroleum products, safety in mines and oilfields: Para 8(j). b) Gas and gasworks, production and distribution of power and energy: Para 11 (c). c) Foreign and extra-territorial jurisdiction: Para 1 (g). d) Treaties, agreements and conventions with other countries and all matters which bring the Federation into relations with any other country: Para 1(a) and 1(b). State Powers: When it comes to Malaysian States, the following matters fall in State hands: Land: Schedule 9 List II, Para 2(a). Under the interpretation Acts, 1948 and 1967, Section 3, land includes “the surface of the earth…all substances therein…all vegetations and other natural products…whether on or below the surface…and land covered by water”. The territorial waters of Kelantan will come within the definition of “land covered by water”. Territorial waters are defined by section 4(2) of the Emergency (Essential Powers) Ordinance No 7, 1969. Subject to some exceptions. They refer to three nautical miles. Revenue from lands: schedule 10, part III, Para 2. In addition to the income from land, one notes that in Article 110(3a) there is provision for discretionary payment on such terms and conditions as maybe prescribed by or under federal law of the export duty on “mineral oils” produced in the state. Petroleum comes within the meaning of “mineral oils” under Section 10 of the Petroleum Development Act.


Sabah & Sarawak: In addition to the right of the states, Sabah and Sarawak enjoy some special sources of revenue. a) Schedule 10, part IV, Para 1 assigns import duty and excise duty on petroleum products to Sabah and Sarawak. b) Schedule 10, Part V, Para3 assigns royalty and export duty on “mineral oils” totaling 10% to Sabah and Sarawak. “Petroleum”, as defined in the Petroleum Development Act, falls within the meaning of “mineral oils” and, therefore, 10% combined royalty and export duty on it constitutes part of the guaranteed revenue for Sabah and Sarawak.

14. Furthermore the said agreement 14th day of June 1976 is unenforceable by reason of the Petroleum Act 1974 being in contravention of Article 13 of the Federal Constitution of Malaysia which states that no law shall provide for compulsory acquisition or the use of property without compensation.

15. Thirdly the said agreement 14th day of June 1976 was executed by the executive

arm of the State Government of Sabah and has yet to receive the approval and consent of the State Legislative Assembly and is therefore ultra vires null and void.

16. Fourthly, the said agreement dated the 14th day of June 1976 is merely a vesting deed and todate there is no agreement or contract between the 1st and 2nd Defendants in regard to the sharing and exploitation of the onshore and offshore resources of petroleum belonging to the state of Sabah. In consequence thereof, the said agreement is ultra vires null and void.

17. Fifthly, the vesting of the petroleum resources of Sabah under the said agreement

dated the 14th day of June 1976 by the 2nd Defendant into the hands of the 1st Defendant by which is neither the executive or legislative part of the Federal Government of Malaysia but merely a company incorporated under the Company’s Act 1965 is ultra vires null and void.

18. Meanwhile it was reported in the local media on 20th September 2012 that there

was the signing orf the Kuchiing Declaration. According to the mass media reports the declaration was to honor the spirit and the 20-point Malaysia Agreement of 1963, which they said had not been fulfilled by the BN government for the last 49 years.

The de facto leader of Pakatan, Anwar Ibrahim, told the thousands who braved the drenching downpour at Chonglin Park, Kuching, that the declaration was to affirm Pakatan's commitment to the Malaysia Agreement if it takes power in the 13th GE.


In short, the declaration pledges to restore the rightful place of Sabah and Sarawak in Malaysia. The pledges of Pakatan if it takes over the federal government can be summarised as below:

Article One: Equal partners Pakatan will restore the spirit of the Malaysia Agreement and the position of Sarawak and Sabah as equal partners within Malaysia by restoring autonomy to Sarawak and Sabah within the framework of the federal constitution. Article Two: Fair representation PR will increase national integration between Sarawak, Sabah and Peninsular Malaysia through a fair power-sharing arrangement that fully upholds the spirit of the Malaysia Agreement. Article Three: Citizenship PR will set up a royal commission to solve the perennial national problem of illegal immigration and citizenship, particularly in Sarawak and Sabah. Article Four: Restoration of native customary rights over land PR will endorse the authority already vested in the state laws of Sarawak and Sabah to set up land commissions to investigate, resolve disputes, redress, survey and restore Native Customary Rights over Native Customary Lands. Article Five: Competent Sarawak and Sabah PR will endorse the appointment of Sarawak and Sabah citizens to head government departments in their own respective states and by the powers vested in the state secretaries of both states as well as give first priority to the appointment of Sarawak and Sabah citizens at federal government level functioning within Sarawak and Sabah. Article Six: Oil justice PR will raise the royalties paid on petroleum and hydrocarbon resources to Sarawak and Sabah to 20 percent from the present 5 percent. Article Seven; Equitable development PR will bring the level of infrastructure development in Sarawak and Sabah up to par with Peninsular Malaysia.

16. In so far as Article 6 on oil justice is concerned the said Declaration if brought into effect would be unlawful, ultra vires null and void article 74 of the Federal Constitution and the Ninth Schedule of the Federal Constitution.


PARTICULARS – NINTH & TENTH SCHEDULE Federal powers: In Schedule 9. List of the Federal Constitution, the following topics are assigned to the Federal Government: a) Except as to State rights over permits and licenses, the Federal Government has rights over development of mineral resources, mines, mining, minerals and mineral ores, oils and oil-fields, petroleum products, safety in mines and oilfields: Para 8(j). b) Gas and gasworks, production and distribution of power and energy: Para 11 ( c ). c) Foreign and extra-territorial jurisdiction: Para 1 (g). d) Treaties, agreements and conventions with other countries and all matters which bring the Federation into relations with any other country: Para 1(a) and 1(b). State Powers: When it comes to Malaysian States, the following matters fall in State hands: a) Land: Schedule 9 List II, Para 2(a). Under the interpretation Acts, 1948 and 1967, Section 3, land includes “the surface of the earth…all substances therein…all vegetations and other natural products…whether on or below the surface…and land covered by water”.. b) Revenue from lands: schedule 10, part III, Para 2. c) In addition to the income from land, in Article 110(3a) there is provision for discretionary payment on such terms and conditions as maybe prescribed by or under federal law of the export duty on “mineral oils” produced in the state. Petroleum comes within the meaning of “mineral oils” under Section 10 of the Petroleum Development Act. Sabah & Sarawak: In addition to the right of the states, Sabah enjoys some special sources of revenue. a) Schedule 10, part IV, Para 1 assigns import duty and excise duty on petroleum products to Sabah and Sarawak. b) Schedule 10, Part V, Para3 assigns royalty and export duty on “mineral oils” totaling 10% to Sabah. “Petroleum”, as defined in the Petroleum Development Act, falls within the meaning of “mineral oils” and, therefore, 10% combined royalty and export duty on it constitutes part of the guaranteed revenue for Sabah.


17. Furthermore the said Declaration in so far as petrol justice is concerned is unenforceable by reason of being in contravention of Article 13 (2) of the Federal Constitution of Malaysia which states that no law shall provide for compulsory acquisition or the use of property without compensation. The said Declaration fails to recognise that the State of Sabah is entitled to one hundred (100) per cent of the proceeds and income from the extraction of petroleum offshore and onshore of Sabah waters

AND THE 1st, 2nd, 3rd, 4th, 5th & 6th PLAINTIFFS CLAIM:- a. A declaration that the agreement dated 18th June 1976 between the 1st

Defendant and the 2nd Defendant is ultra vires null and void;

b. A declaration that the Petroleum Development Act in so far as it applies to the agreement dated 18th June 1976 between the 1st Defendant and the 2nd Defendant is ultra vires null and void;

c. Damages to be assessed; d. Costs; e. Statutory Interest; f. Any other relief deemed fit by this Honourable Court. Dated the 25th day of September, 2012. _________________________________________ MESSRS MARCEL JUDE JOSEPH (2000) & CO Solicitors for the Plaintiffs

[advocate_sign]


And RM225.00 (or such sum as may be allowed on taxation for costs, and also, if the Plaintiff obtains in order for substituted service, the further sum of RM60.00 (or such sum as may be allowed on taxation). If the amount claimed and costs be paid to the Plaintiff or his solicitor within 8 days after service hereof (inclusive of the day of service), further proceedings will be stayed, but if it appears from the indorsement on the writ that the Plaintiffs is resident outside the scheduled territories, as defined by the Exchange Control Act, 1953, or is acting by order or on behalf of a person so resident, proceedings will only be stayed if the amount claimed and costs is paid into court within the said time and notice of such payment is given to the Plaintiffs or his solicitor.

INDORSEMENT AS TO ADVOCATE AND ADDRESS THIS WRIT is issued by Messrs Marcel Jude Joseph (2000) & Co., Advocates & Solicitors for the Plaintiffs whose address for service is at c/o Borneobest House, Lot No. 3A12, Level 3, Central Shopping Plaza, 88200 Kota Kinabalu, Sabah.

INDORSEMENT AS TO SERVICE THIS WRIT was served by _____________________________________________________by way of personal service on the 1st and 2nd Defendants (who is known to me)(or who was pointed out to me by _________________________________________________ (or who admitted to me that he was ______________________________________________________) at________________________________________________________________________________________________________________________________ (place) on __________________ the _________ day of __________________________ 20_________. INDORSED the _________ day of _______________________ 20_______. (Signed) : ________________________________ Process Server: ________________________________ (Address) : _________________________________ _________________________________ _________________________________


WRIT OF SUMMONS MALAYSIA

IN THE HIGH COURT IN SABAH AND SARAWAK AT KOTA KINABALU

SUIT NO. ____________________________________

BETWEEN

LAHIRUL BIN LATIGU (NRIC NO. 760719-12-5747) ….. 1ST PLAINTIFF

MOHD JULPIKAR BIN AB MIJAN (NRIC NO. 810102-12-5459) … 2ND PLAINTIFF

ZAINAL BIN AJAMAIN (NRIC NO. 561019-12-5285) …. 3RD PLAINTIFF

JOSEPH WILFRED (NRIC NO. 691002-12-6025) …. 4TH PLAINTIFF

DULI @ DULLIE BIN MARI @ MARIE …. 5TH PLAINTIFF (NRIC NO. 510109-12-5027)

MICHAEL PETER GOVIND @ MICK GOVIIND …. 6TH PLAINTIFF

AND PETROLIAM NASIONAL BERHAD …. 1ST DEFENDANT

STATE GOVERNMENT OF SABAH …. 2ND DEFENDANT

______________________________________

W R I T O F S U M M O N S _____________________________________

Filed by:-

MESSRS. MARCEL JUDE JOSEPH (2000) & CO ADVOCATES & SOLICITORS

BORNEOBEST HOUSE, LOT 3A12, LEVEL 3 CENTRAL SHOPPING PLAZA

JALAN BANJARAN 88200 KOTA KINABALU, SABAH

[case_no]


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