154Renewal of petroleum retention lease—offer document

#### 154 Renewal of petroleum retention lease—offer document Scope (1) This section applies if an application to renew a petroleum retention lease has been made under section 153. Offer document—compliance with conditions etc. (2) If: (a) each of the following has been complied with: (i) the conditions to which the petroleum retention lease is, or has from time to time been, subject; (ii) the provisions of this Chapter, Chapter 4, Chapter 5A, Chapter 6 and Part 7.1; (iii) the regulations; and (b) the Joint Authority is satisfied that recovery of petroleum from the lease area: (i) is not, at the time of the application, commercially viable; and (ii) is likely to become commercially viable within the period of 15 years after that time; and (c) the Joint Authority is satisfied that the technical advice and financial resources available to the applicant are sufficient to: (i) carry out the operations and works that will be authorised by the lease; and (ii) discharge the obligations that will be imposed under this Act, or a legislative instrument under this Act, in relation to the lease; and (d) the Joint Authority is satisfied of the matters (if any) prescribed by the regulations; the Joint Authority must give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to renew the lease. > Note: Section 259 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions). Offer document—non‑compliance with conditions etc. (3) If: (a) any of: (i) the conditions to which the petroleum retention lease is, or has from time to time been, subject; or (ii) the provisions of this Chapter, Chapter 4, Chapter 5A, Chapter 6 and Part 7.1; or (iii) the provisions of the regulations; have not been complied with; and (b) the Joint Authority is satisfied that there are sufficient grounds to warrant the granting of the renewal of the petroleum retention lease; and (c) the Joint Authority is satisfied that recovery of petroleum from the lease area: (i) is not, at the time of the application, commercially viable; and (ii) is likely to become commercially viable within the period of 15 years after that time; the Joint Authority may give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to renew the lease. > Note: Section 259 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions). (4) Without limiting paragraph (3)(b), in deciding whether to be satisfied that there are sufficient grounds to warrant the granting of the renewal of the lease, the Joint Authority must have regard to: (a) whether the technical advice and financial resources available to the applicant are sufficient to: (i) carry out the operations and works that will be authorised by the lease; and (ii) discharge the obligations that will be imposed under this Act, or a legislative instrument under this Act, in relation to the lease; and (b) any other matters prescribed by the regulations.