sec.123Provisions of petroleum lease

### sec.123 Provisions of petroleum lease Each petroleum lease must state its term and area. The term must— be for at least the plan period for the initial development plan for the lease; and end no later than 30 years after the lease takes effect. The lease may also state— conditions or other provisions of the lease, other than conditions or provisions that are— inconsistent with the mandatory conditions for petroleum leases; or the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease; and a day for the lease to take effect; and a day by which petroleum production under the lease is to start. The conditions of the lease may include an Australian market supply condition applying to all or part of the area of the lease. However, the provisions of the lease may exclude or restrict the carrying out of an authorised activity for the lease. The day of effect must not be before the day the lease is granted. If no day of effect is decided, the lease takes effect on the day it is granted. The production commencement day may be more than 2 years after the day of effect only if the Minister is satisfied the holder has entered into a relevant arrangement. The matters that must be considered in deciding the provisions of the lease include the development plan criteria and capability criteria. This section applies subject to section 123A . s 123 amd 2005 No. 57 s 5 ; 2011 No. 2 s 121 ; 2011 No. 16 s 14 ; 2012 No. 20 s 281 sch 2 (sec.123-ssec.1) Each petroleum lease must state its term and area. (sec.123-ssec.2) The term must— be for at least the plan period for the initial development plan for the lease; and end no later than 30 years after the lease takes effect. (sec.123-ssec.3) The lease may also state— conditions or other provisions of the lease, other than conditions or provisions that are— inconsistent with the mandatory conditions for petroleum leases; or the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease; and a day for the lease to take effect; and a day by which petroleum production under the lease is to start. (sec.123-ssec.3A) The conditions of the lease may include an Australian market supply condition applying to all or part of the area of the lease. (sec.123-ssec.4) However, the provisions of the lease may exclude or restrict the carrying out of an authorised activity for the lease. (sec.123-ssec.5) The day of effect must not be before the day the lease is granted. (sec.123-ssec.6) If no day of effect is decided, the lease takes effect on the day it is granted. (sec.123-ssec.7) The production commencement day may be more than 2 years after the day of effect only if the Minister is satisfied the holder has entered into a relevant arrangement. (sec.123-ssec.8) The matters that must be considered in deciding the provisions of the lease include the development plan criteria and capability criteria. (sec.123-ssec.9) This section applies subject to section 123A . - (a) be for at least the plan period for the initial development plan for the lease; and - (b) end no later than 30 years after the lease takes effect. - (a) conditions or other provisions of the lease, other than conditions or provisions that are— (i) inconsistent with the mandatory conditions for petroleum leases; or (ii) the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease; and - (i) inconsistent with the mandatory conditions for petroleum leases; or - (ii) the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease; and - (b) a day for the lease to take effect; and - (c) a day by which petroleum production under the lease is to start. - (i) inconsistent with the mandatory conditions for petroleum leases; or - (ii) the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease; and