Indonesia has a long history in oil and gas sector since the era of Dutch Occupation. From that era until now, various changes had occurred in regards to how we run our oil and gas industry. From the concession system, contract of work (kontrak karya), until the system we use these days which is the production sharing contract. Our regulatory framework in oil and gas industry is based on Law No. 22 of 2001 on Oil and Gas. It furthers regulated in the Government Regulation No. 35 of 2004 on Oil and Gas Upstream Business Activities that require the production sharing contract to use the cost recovery system. But earlier this year, through the Regulation of the Minister of Energy and Mineral Resources No. 8 of 2017 on Gross Split Production Sharing Contract, the cost recovery system in the production sharing contract was changed into the gross split system. The problem arose as the cost recovery system was implemented through a government regulation and the gross split system through a minister regulation which is a lower lever norm based on the hierarchy created by Law No. 12 of 2011 on the Formulation of Regulations. This thesis is trying to explain whether the gross split system on production sharing contract can be implemented even though it contradicts with a higher norm with a normative legal research method by conducting a literature study. The research found that the gross split system on production sharing contract can be implemented even though it is contradicting with a higher norm. So the gross split production sharing contract that has already been made can still be applied.