325Rights conferred by greenhouse gas holding lease

325 Rights conferred by greenhouse gas holding lease

(1) A greenhouse gas holding lease authorises the lessee, in accordance with the conditions (if any) to which the lease is subject—

(a) to explore in the lease area for a potential greenhouse gas storage formation; and

(b) to explore in the lease area for a potential greenhouse gas injection site; and

(c) to inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation, so long as the relevant well is situated in the lease area; and

(d) to store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation, so long as the injection of the stored greenhouse gas substance takes place at a well situated in the lease area; and

(e) to inject, on an appraisal basis—

into a part of a geological formation for purposes in connection with the exploration authorised by paragraph (a) or (b), so long as the relevant well is situated in the lease area; and

(f) to store, on an appraisal basis—

in a part of a geological formation for purposes in connection with the exploration authorised by paragraph (a) or (b), so long as the injection of the stored air, petroleum or water takes place at a well situated in the lease area; and

(g) with the written consent of the Minister, to recover petroleum in the lease area for the sole purpose of appraising a discovery of petroleum that was made as an incidental consequence of—

(i) the exploration authorised by paragraph (a) or (b); or

(ii) the injection authorised by paragraph (c) or (e); and

(h) to carry on such operations, and execute such works, in the lease area as are necessary for those purposes.

(2) The rights conferred on the lessee by subsection (1) are subject to this Act and the regulations.

(3) If petroleum is recovered by the lessee in the lease area as authorised by subsection (1)(g), the petroleum does not become the property of the lessee.

(4) A greenhouse gas holding lease does not authorise the lessee to make a well outside the lease area.