364Refusal to renew greenhouse gas holding lease

364 Refusal to renew greenhouse gas holding lease

(1) This section applies if an application to renew a greenhouse gas holding lease has been made under section 362.

(2) The Minister must, by written notice given to the applicant, refuse to renew the lease if—

(i) the conditions to which the greenhouse gas holding 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 greenhouse gas holding lease.

(3) The Minister must, by written notice given to the applicant, refuse to renew the lease if the Minister is satisfied that the applicant is, at the time of the application, in a position to—

(a) inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

(b) permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned.

(c) within 12 months after the notice was given, the lessee applies for a greenhouse gas injection 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 greenhouse gas injection licence; or

(ii) before the application lapses—

(e) the Minister grants, or refuses to grant, the greenhouse gas injection licence; or

(f) the application lapses—

(c) subsection (4) 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.

(6) Subsections (4) and (5) have effect subject to this Chapter but despite section 332.