324Simplified outline

324 Simplified outline

 This Part provides for the grant of greenhouse gas holding leases over blocks in the offshore area.

 A greenhouse gas holding lease authorises the lessee to explore in the lease area for potential greenhouse gas storage formations and potential greenhouse gas injection sites.

 A greenhouse gas holding lease may be granted to—

(a) the holder of a greenhouse gas assessment permit; or

(b) the holder of a greenhouse gas injection licence, where no greenhouse gas injection or permanent storage operations have been carried on under the licence; or

(c) an unsuccessful applicant for a greenhouse gas injection licence; or

(d) the holder of a petroleum retention lease.

 The main criteria for granting a greenhouse gas holding lease are—

(a) an identified greenhouse gas storage formation is wholly situated in the lease area; and

(b) the applicant is not currently in a position to inject and permanently store a greenhouse gas substance, but is likely to be in such a position within 15 years.

(6) This section is intended only as a guide to readers as to the general scheme and effect of this Chapter.