29Reduction of title area of EL

29 Reduction of title area of EL (1) This section applies in relation to the operational years of an EL: (a) during the term for which the EL is first granted; and (b) only if it is possible to reduce the title area to comply with subsection (3)(a). (2) Unless the Minister decides otherwise under subsection (4), the title area of an EL must be reduced at the end of each period of 2 operational years (a reduction period), including the last 2 operational years if the title holder applies for a renewal of the EL. (3) Before the end of a reduction period, the title holder must give the Minister a notice nominating the blocks to be retained in the title area of the EL: (a) so that the title area after the reduction will comprise no more than 3 separate areas of at least 4 adjoining blocks each; and (b) in the following way: (i) if the title area comprises an even number of blocks – by nominating no more than half that number; Mineral Titles Act 2010 19 (ii) if the title area comprises an odd number of blocks – by increasing the number of blocks by one and nominating no more than half that number. (4) However, the Minister may, on application by the title holder or on the Minister's own initiative, decide: (a) no reduction of the title area is required at the end of a reduction period; or (b) a lesser reduction than is required under subsection (3)(b), as specified in the decision, is permitted at the end of a reduction period; or (c) to defer the reduction of the title area by a period, specified in the decision, not exceeding 12 months. (5) Before making a decision under subsection (4), the Minister must take into account: (a) the extent to which a reduction of the title area may affect the authorised activities conducted under the EL; and (b) any other matter prescribed by regulation.