691Reduction of royalty for petroleum in certain cases

691 Reduction of royalty for petroleum in certain cases

(1) This section applies if the Minister is satisfied that the rate of recovery of petroleum from a well has become so reduced that, having regard to the applicable rate of royalty under section 690, further recovery of petroleum from that well would be uneconomic.

(2) The Minister may, by instrument, determine that the royalty in respect of all or any of the petroleum recovered from the well on or after a date specified in the determination will be at the rate of royalty the Minister specifies in the determination.

(3) A rate of royalty that the Minister specifies in a determination under subsection (2) must be a rate that is lower than the applicable rate of royalty under section 690 in respect of all or any of the petroleum recovered from the well.

(4) The prescribed rate in respect of petroleum to which a determination under subsection (2) is applicable is the rate specified in a determination.