144Refusal to renew petroleum retention lease

144 Refusal to renew petroleum retention lease

(1) This section applies if an application to renew a petroleum retention lease has been made under section 142.

(i) the conditions to which the petroleum retention lease is, or has from time to time been, subject; or

(b) the Minister is not satisfied that there are sufficient grounds to warrant the granting of the renewal of the petroleum retention lease—

the Minister must, by written notice given to the applicant, refuse to renew the lease.

(3) If the Minister is satisfied that recovery of petroleum from the lease area is, at the time of the application, commercially viable, the Minister must, by written notice given to the applicant, refuse to renew the lease.

(4) If the Minister is satisfied that recovery of petroleum from the lease area is unlikely to become commercially viable within the period of 15 years after the time of the application, the Minister must, by written notice given to the applicant, refuse to renew the lease.

(5) A notice of refusal under subsection (3) must contain a statement to the effect that the lessee may, within 12 months after the notice was given, apply for a petroleum production licence over one or more of the blocks comprised in the lease.

(c) within 12 months after the notice was given, the lessee applies for a petroleum production licence over one or more of the blocks comprised in the lease; and

(d) the lease would, apart from this subsection, expire—

(i) before the Minister grants, or refuses to grant, the petroleum production licence; or

(ii) before the application lapses—

(e) the Minister grants, or refuses to grant, the petroleum production licence; or

(f) the application lapses—

(c) subsection (6) does not apply; and

(d) the lease would, apart from this subsection, expire within 12 months after the notice was given—

the lease continues in force until the end of the 12‑month period beginning on the day on which the notice was given.

(8) Subsections (6) and (7) have effect subject to this Chapter but despite section 128.