104Mandatory reduction of licence area on renewal of exploration licence

104 Mandatory reduction of licence area on renewal of exploration licence

104 Mandatory reduction of licence area on renewal of exploration licence

(1) This section deals with the mandatory reduction of the licence area covered by an exploration licence when the licence is renewed.

(2) Subject to subsection (4) (b), on each surrender day of an exploration licence, the licence holder must surrender:

(a) 50% of the number of blocks in the licence area, or

(b) if 50% of that number of the blocks is a whole number and a fraction, the next higher whole number of the blocks.

(3) Subject to subsection (4) (a), the blocks that remain in the licence area after a surrender under subsection (2) must form a discrete area.

(4) The Minister may:

(a) give permission for the surrender of blocks in a licence area if the licence area remaining after the proposed surrender would consist of not more than 3 discrete areas, or

(b) give permission for a licence area to be reduced by less than 50% if the Minister considers that there are special circumstances present in relation to the renewal application.