Offshore Minerals Act 1998
sec.436Penalty if fee or royalty overdue
Start here
Get a plain-English read of sec.436
Turn the raw legal text into a practical explanation grounded in Offshore Minerals Act 1998.
sec.436 Penalty if fee or royalty overdue
Subject to this section, a tenure holder must pay a penalty to the Minister for any fee or amount of royalty that the holder fails to pay when it becomes payable. The penalty is calculated— on the amount of the fee or royalty that remains unpaid; and at the rate of 0.33% for each day during which the fee or royalty is unpaid. A penalty is not payable under subsection (1) on an amount of royalty for any period until 7 days after— the landed value of the mineral has been agreed or decided under section 432 , if the rate of royalty is related to the landed value of the mineral; or the quantity of the mineral has been agreed or decided under section 433 , if the rate of royalty is related to the quantity of the mineral recovered. (sec.436-ssec.1) Subject to this section, a tenure holder must pay a penalty to the Minister for any fee or amount of royalty that the holder fails to pay when it becomes payable. (sec.436-ssec.2) The penalty is calculated— on the amount of the fee or royalty that remains unpaid; and at the rate of 0.33% for each day during which the fee or royalty is unpaid. (sec.436-ssec.3) A penalty is not payable under subsection (1) on an amount of royalty for any period until 7 days after— the landed value of the mineral has been agreed or decided under section 432 , if the rate of royalty is related to the landed value of the mineral; or the quantity of the mineral has been agreed or decided under section 433 , if the rate of royalty is related to the quantity of the mineral recovered.
- (a) on the amount of the fee or royalty that remains unpaid; and
- (b) at the rate of 0.33% for each day during which the fee or royalty is unpaid.
- (a) the landed value of the mineral has been agreed or decided under section 432 , if the rate of royalty is related to the landed value of the mineral; or
- (b) the quantity of the mineral has been agreed or decided under section 433 , if the rate of royalty is related to the quantity of the mineral recovered.