43Notice to apply for production licence

43 Notice to apply for production licence (1) Subject to subsection (5), where the Minister is satisfied that commercial production of petroleum should commence in a retention licence area, he may, by notice served on the retention Petroleum Act 1984 42 licensee, require him to show cause why he should not apply for a production licence in relation to the blocks where the commercially exploitable accumulation of petroleum occurs and specify a date, being not earlier than 6 months after the date of the notice, by which the licensee should show cause. (2) Where a retention licensee has been served with a notice under subsection (1) and he fails to show cause to the satisfaction of the Minister, within the time specified in the notice, the Minister may, by notice served on the retention licensee, direct him to apply for a production licence and specify a date, being not earlier than 3 months after the date of the notice, by which the licensee should apply for the production licence. (3) Where, under subsection (2), a retention licensee has been directed to apply for a production licence before a date specified in the direction and the licensee has failed to so apply, the Minister may, by notice served on the licensee, cancel his licence. (4) The Minister may, by notice served on a retention licensee, vary the date in a notice under subsection (1) or (2) so as to allow a longer period for the retention licensee to show cause or apply for a production licence. (5) The Minister may not exercise his powers under this section if the blocks where the commercially exploitable accumulation of petroleum occurs are, in whole or part, Aboriginal land and no agreement in relation to the production of petroleum in that area has been reached under the Land Rights Act between the retention licensee and the Land Council or as otherwise permitted under that Act.