173Refusal to grant petroleum production licence

#### 173 Refusal to grant petroleum production licence Scope (1) This section applies if an application for the grant of a petroleum production licence has been made under: (a) section 168 or 170; or (b) clause 2 or 4 of Schedule 4. > Note 1: Section 168 and clause 2 of Schedule 4 deal with applications by permittees. > Note 2: Section 170 and clause 4 of Schedule 4 deal with applications by lessees. No block contains petroleum (2) If: (a) the application specifies one block; and (b) the Joint Authority is not satisfied that the block contains petroleum; the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant. (3) If: (a) the application specifies 2 or more blocks; and (b) the Joint Authority is not satisfied that any of the blocks contains petroleum; the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant. Some, but not all, blocks contain petroleum (4) If: (a) the application specifies 2 or more blocks; and (b) the Joint Authority is satisfied that: (i) only one of the blocks contains petroleum; or (ii) some, but not all, of the blocks contain petroleum; the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant in relation to the remaining block or blocks. > Note: The petroleum exploration permit or petroleum retention lease remains in force in relation to the remaining block or blocks. Technical advice and financial resources (4A) If the Joint Authority is not satisfied as to the matter in paragraph 171(1)(ba), the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant. Application for Greater Sunrise unit reservoir petroleum production licence—no approval by Timorese Designated Authority (5) If: (a) the application is for a Greater Sunrise unit reservoir petroleum production licence; and (b) the Joint Authority is not satisfied that the Timorese Designated Authority has given the approvals mentioned in paragraph 172(c); the Joint Authority must, by written notice given to the applicant, refuse to grant the licence to the applicant. Impact on greenhouse gas titles (6) If: (a) (assuming that the applicant were granted a petroleum production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph 171(1)(b)) the petroleum production licence would be a post‑commencement petroleum production licence; and (b) either: (i) the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the petroleum production licence will have a significant adverse impact on operations that are being, or could be, carried on under a greenhouse gas assessment permit or a greenhouse gas holding lease; or (ii) if one or more identified greenhouse gas storage formations are wholly situated in the permit area of a greenhouse gas assessment permit or the lease area of a greenhouse gas holding lease—the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the petroleum production licence will have a significant adverse impact on operations that could be carried on under a future greenhouse gas injection licence, where the identified greenhouse gas storage formation, or any of the identified greenhouse gas storage formations, is wholly situated in the licence area of the future greenhouse gas injection licence; and (c) the Joint Authority is not satisfied that it is in the public interest for the petroleum production licence to be granted to the applicant; the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant. (7) If: (a) (assuming that the applicant were granted a petroleum production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph 171(1)(b)) the petroleum production licence would be a post‑commencement petroleum production licence; and (b) the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the petroleum production licence will have a significant adverse impact on operations that are being, or could be, carried on under a greenhouse gas injection licence; and (c) the Joint Authority is not satisfied that: (i) the registered holder of the greenhouse gas injection licence has agreed, in writing, to the grant of the petroleum production licence; and (ii) to the extent to which the agreement is a dealing to which Part 5.6 applies—the dealing has been approved under section 543 or is reasonably likely to be approved under that section; and (iii) to the extent to which the agreement is a dealing to which Part 4.6 would apply if the petroleum production licence were to come into existence—it is reasonably likely that the dealing would, after the petroleum production licence comes into existence, be approved under section 493; the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant. Other prescribed matters (7A) If the Joint Authority is not satisfied of the matters (if any) prescribed by the regulations for the purposes of paragraph 171(1)(f), the Joint Authority may, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant. Reasons for refusal (8) A notice under this section must set out the reasons for the Joint Authority’s refusal. Public interest (9) For the purposes of paragraph (6)(c), in considering whether the grant of the petroleum production licence is in the public interest, the Joint Authority must have regard to: (a) whether the registered holder of the greenhouse gas assessment permit or greenhouse gas holding lease, as the case may be, has agreed, in writing, to the grant of the petroleum production licence; and (b) if so—the terms of that agreement. (10) Subsection (9) does not limit the matters to which the Joint Authority may have regard. Deferral of application (11) This section has effect subject to section 174.