38Grant or refusal of renewal of retention licence

38 Grant or refusal of renewal of retention licence (1) Where, under section 37, the Minister accepts an application by a retention licensee for the first renewal of the licensee's retention licence, the Minister: (a) shall, where the retention licensee has complied with the conditions to which the licence is subject, the lawful directions, if any, given to the licensee by the Minister and with this Act; or (b) may, where the retention licensee has not so complied and the Minister is satisfied that, although the licensee has not so licence, by notice in writing, inform the licensee that the Minister is prepared to renew the licence. (2) Where, under section 37, the Minister accepts an application by a retention licensee for the renewal of the licensee's retention licence, other than the first renewal of the retention licence, the Minister may inform the licensee, by notice served on the licensee, that the Minister is prepared to renew the retention licence and, if the retention licence is so renewed, it is renewed for a term of 5 years. (3) Where, under section 37, the Minister accepts an application by a retention licensee for the renewal of the licensee's retention licence but the retention licensee has not complied with the conditions to which the licence is subject, the lawful directions, if any, given to the licensee by the Minister and this Act and, in the case of an application for the first renewal of the retention licence, the Minister is not satisfied that circumstances exist that justify the renewal of the licence, the Minister shall, subject to subsection (5), by notice served on the retention licensee, refuse to renew the licence. (3A) A notice of the Minister's refusal to renew a retention licence must (4) Before exercising his or her powers under subsection (1), (2) or (3), the Minister may, by notice served on the applicant, require the applicant to lodge with the Minister, before the date specified in the notice: (a) an analysis of the work undertaken and expenditure incurred during the term of the licence and details of the results of the work; (b) a statement of the reasons why the applicant has not applied for a production licence in relation to the licence area; Petroleum Act 1984 39 (c) a technical works programme for the term of the proposed renewal; and (d) such other information as the Minister thinks fit. (5) The Minister shall not refuse to renew a retention licence unless the Minister has: (a) by notice served on the retention licensee, given not less than 28 days notice of the Minister's intention to refuse to renew the licence; (b) in the notice: (i) given particulars of the reasons for the Minister's intention to refuse to renew the licence; and (ii) specified a date on or before which the retention licensee may, by notice served on the Minister, submit any matters that the licensee wishes the Minister to consider; and (c) taken into account any matters so submitted to the Minister on or before the specified date by the retention licensee. (6) Notices under subsections (1) and (2) shall contain: (a) a statement of the conditions to which the retention licence on its renewal is to be subject; and retention licensee does not make a request under subsection (7). (7) A retention licensee served with a notice under subsection (1) or (2) may, within 28 days after service of the notice or a longer period agreed by the Minister, by notice served on the Minister, request the Minister to renew the retention licence. (8) If a retention licensee makes a request under subsection (7) within the time referred to in that subsection, the Minister must renew the retention licence. (12) Where a retention licensee has been served with a notice under subsection (1) or (2) but has not made the request referred to in subsection (7) within the period referred to in that subsection, the Petroleum Act 1984 40 (13) Where: (a) an application for the renewal of a retention licence has been accepted; and (b) the retention licence would, but for this subsection, expire before: (i) the Minister renews, or refuses to renew, the retention (ii) the application lapses as provided by subsection (12), the retention licence shall be deemed to continue in force in all respects until: (c) the Minister renews, or refuses to renew, the retention licence; or (d) the application so lapses,