120Standard conditions of petroleum retention leases

120 Standard conditions of petroleum retention leases

(1) A petroleum retention lease is subject to a condition that if the Minister gives the lessee a written notice requesting the lessee to—

(a) re‑evaluate the commercial viability of petroleum production in the lease area (otherwise than by the drilling of wells); and

(b) inform the Minister in writing of the results of the re‑evaluation—

the lessee must comply with the request within—

(c) the period of 90 days after the notice is given; or

(d) such longer period as the Minister allows.

(2) The Minister may allow a longer period under subsection (1)(d) only on written application made by the lessee within the period of 90 days mentioned in subsection (1)(c).

(3) If a petroleum retention lessee has complied with a subsection (1) request during the term of the lease, the Minister must not give the lessee a further subsection (1) request during that term.

(4) Despite section 119(2), the condition mentioned in subsection (1) does not need to be specified in the lease.

(5) Any or all of the following conditions may be specified in a petroleum retention lease—

(a) conditions requiring the lessee to carry out work in, or in relation to, the lease area;

(b) conditions about the amounts that the lessee must spend in carrying out such work;

(c) conditions requiring the lessee to comply with directions that—

(i) relate to the matters covered by paragraphs (a) and (b);

(ii) are given in accordance with the lease.

S. 120(6) amended by No. 16/2018 s. 19.

(6) Subsection (5) does not limit section 119(1), 121(3) or 121A(1).