sec.121Requirements for grant

### sec.121 Requirements for grant The requirements for grant are each of the following— the applicant is an eligible person; the proposed area of the proposed petroleum lease— is appropriate for the authorised activities proposed to be carried out; and if the authorised activities relate to petroleum production—contains commercial quantities of petroleum; and if the authorised activities relate to storage of petroleum or a prescribed storage gas—contains an adequately identified natural underground reservoir that is adequate for the proposed purpose of the lease; the conditions of the relevant authority to prospect have been substantially complied with; the Minister has approved the applicant’s proposed initial development plan for the lease; the Minister is of the opinion that the applicant is capable of carrying out authorised activities for the lease, having regard to the applicant’s— financial and technical resources; and ability to manage petroleum exploration and production; a relevant environmental authority for the lease has been issued; the applicant has established 1 of the matters mentioned in subsection (2) ; the applicant has paid the annual rent for the first year of the proposed lease; the applicant has given, under section 488 , security for the lease. For subsection (1) (g) , the matters are any of the following— commercial petroleum production in the area of the lease is, or is likely, within 2 years after the lease is to take effect; the applicant has— entered into a contract, coordination arrangement or other arrangement (a relevant arrangement ) to supply petroleum produced from the area of the lease; and lodged a written declaration that the petroleum produced from the area of the lease will meet all or some of the petroleum required to be supplied under the relevant arrangement; the area of the lease is suitable for underground storage of petroleum or a prescribed storage gas and the storage will, or is likely to, start before the later of the following to happen— the end of 5 years after the lease is to take effect; the end of the plan period for the applicant’s proposed development plan for the lease. The matters mentioned in subsection (1) (e) are the capability criteria . A person satisfies the capability criteria if the Minister forms the opinion about the person mentioned in subsection (1) (e) . s 121 amd 2004 No. 26 s 100 ; 2005 No. 3 s 51 ; 2009 No. 16 s 77 ; 2010 No. 31 s 429 ; 2011 No. 2 s 121 ; 2012 No. 20 s 281 sch 2 ; 2014 No. 29 s 124E (sec.121-ssec.1) The requirements for grant are each of the following— the applicant is an eligible person; the proposed area of the proposed petroleum lease— is appropriate for the authorised activities proposed to be carried out; and if the authorised activities relate to petroleum production—contains commercial quantities of petroleum; and if the authorised activities relate to storage of petroleum or a prescribed storage gas—contains an adequately identified natural underground reservoir that is adequate for the proposed purpose of the lease; the conditions of the relevant authority to prospect have been substantially complied with; the Minister has approved the applicant’s proposed initial development plan for the lease; the Minister is of the opinion that the applicant is capable of carrying out authorised activities for the lease, having regard to the applicant’s— financial and technical resources; and ability to manage petroleum exploration and production; a relevant environmental authority for the lease has been issued; the applicant has established 1 of the matters mentioned in subsection (2) ; the applicant has paid the annual rent for the first year of the proposed lease; the applicant has given, under section 488 , security for the lease. (sec.121-ssec.2) For subsection (1) (g) , the matters are any of the following— commercial petroleum production in the area of the lease is, or is likely, within 2 years after the lease is to take effect; the applicant has— entered into a contract, coordination arrangement or other arrangement (a relevant arrangement ) to supply petroleum produced from the area of the lease; and lodged a written declaration that the petroleum produced from the area of the lease will meet all or some of the petroleum required to be supplied under the relevant arrangement; the area of the lease is suitable for underground storage of petroleum or a prescribed storage gas and the storage will, or is likely to, start before the later of the following to happen— the end of 5 years after the lease is to take effect; the end of the plan period for the applicant’s proposed development plan for the lease. (sec.121-ssec.3) The matters mentioned in subsection (1) (e) are the capability criteria . (sec.121-ssec.4) A person satisfies the capability criteria if the Minister forms the opinion about the person mentioned in subsection (1) (e) . - (a) the applicant is an eligible person; - (b) the proposed area of the proposed petroleum lease— (i) is appropriate for the authorised activities proposed to be carried out; and (ii) if the authorised activities relate to petroleum production—contains commercial quantities of petroleum; and (iii) if the authorised activities relate to storage of petroleum or a prescribed storage gas—contains an adequately identified natural underground reservoir that is adequate for the proposed purpose of the lease; - (i) is appropriate for the authorised activities proposed to be carried out; and - (ii) if the authorised activities relate to petroleum production—contains commercial quantities of petroleum; and - (iii) if the authorised activities relate to storage of petroleum or a prescribed storage gas—contains an adequately identified natural underground reservoir that is adequate for the proposed purpose of the lease; - (c) the conditions of the relevant authority to prospect have been substantially complied with; - (d) the Minister has approved the applicant’s proposed initial development plan for the lease; - (e) the Minister is of the opinion that the applicant is capable of carrying out authorised activities for the lease, having regard to the applicant’s— (i) financial and technical resources; and (ii) ability to manage petroleum exploration and production; - (i) financial and technical resources; and - (ii) ability to manage petroleum exploration and production; - (f) a relevant environmental authority for the lease has been issued; - (g) the applicant has established 1 of the matters mentioned in subsection (2) ; - (h) the applicant has paid the annual rent for the first year of the proposed lease; - (i) the applicant has given, under section 488 , security for the lease. - (i) is appropriate for the authorised activities proposed to be carried out; and - (ii) if the authorised activities relate to petroleum production—contains commercial quantities of petroleum; and - (iii) if the authorised activities relate to storage of petroleum or a prescribed storage gas—contains an adequately identified natural underground reservoir that is adequate for the proposed purpose of the lease; - (i) financial and technical resources; and - (ii) ability to manage petroleum exploration and production; - (a) commercial petroleum production in the area of the lease is, or is likely, within 2 years after the lease is to take effect; - (b) the applicant has— (i) entered into a contract, coordination arrangement or other arrangement (a relevant arrangement ) to supply petroleum produced from the area of the lease; and (ii) lodged a written declaration that the petroleum produced from the area of the lease will meet all or some of the petroleum required to be supplied under the relevant arrangement; - (i) entered into a contract, coordination arrangement or other arrangement (a relevant arrangement ) to supply petroleum produced from the area of the lease; and - (ii) lodged a written declaration that the petroleum produced from the area of the lease will meet all or some of the petroleum required to be supplied under the relevant arrangement; - (c) the area of the lease is suitable for underground storage of petroleum or a prescribed storage gas and the storage will, or is likely to, start before the later of the following to happen— (i) the end of 5 years after the lease is to take effect; (ii) the end of the plan period for the applicant’s proposed development plan for the lease. - (i) the end of 5 years after the lease is to take effect; - (ii) the end of the plan period for the applicant’s proposed development plan for the lease. - (i) entered into a contract, coordination arrangement or other arrangement (a relevant arrangement ) to supply petroleum produced from the area of the lease; and - (ii) lodged a written declaration that the petroleum produced from the area of the lease will meet all or some of the petroleum required to be supplied under the relevant arrangement; - (i) the end of 5 years after the lease is to take effect; - (ii) the end of the plan period for the applicant’s proposed development plan for the lease.