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Petroleum and Gas (Production and Safety) Act 2004
sec.210Obligation about priority for proposed users
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### sec.210 Obligation about priority for proposed users
If—
a petroleum lease holder or existing user has started negotiations mentioned in section 209 (2) (the first negotiations ) with a proposed user; and
after the start of the first negotiations, the lease holder or existing user starts negotiations mentioned in section 209 (2) (the second negotiations ) with another proposed user; and
the first negotiations have not ended;
the lease holder or existing user must, as far as practicable, ensure the first negotiations are not unreasonably affected by the second negotiations.
Maximum penalty—500 penalty units.
Despite subsection (1) , the existing user has priority to negotiate for the storage capacity of the reservoir that will, when the storage agreement by the lease holder (the existing agreement ) ends, be available storage capacity for the lease holder.
However, the priority under subsection (2) —
applies only to the extent the storage capacity sought is no more than the existing user’s entitlement under the existing agreement in the last year before it is to end according to its provisions; and
ceases 2 years before the existing agreement ends.
(sec.210-ssec.1) If— a petroleum lease holder or existing user has started negotiations mentioned in section 209 (2) (the first negotiations ) with a proposed user; and after the start of the first negotiations, the lease holder or existing user starts negotiations mentioned in section 209 (2) (the second negotiations ) with another proposed user; and the first negotiations have not ended; the lease holder or existing user must, as far as practicable, ensure the first negotiations are not unreasonably affected by the second negotiations. Maximum penalty—500 penalty units.
(sec.210-ssec.2) Despite subsection (1) , the existing user has priority to negotiate for the storage capacity of the reservoir that will, when the storage agreement by the lease holder (the existing agreement ) ends, be available storage capacity for the lease holder.
(sec.210-ssec.3) However, the priority under subsection (2) — applies only to the extent the storage capacity sought is no more than the existing user’s entitlement under the existing agreement in the last year before it is to end according to its provisions; and ceases 2 years before the existing agreement ends.
- (a) a petroleum lease holder or existing user has started negotiations mentioned in section 209 (2) (the first negotiations ) with a proposed user; and
- (b) after the start of the first negotiations, the lease holder or existing user starts negotiations mentioned in section 209 (2) (the second negotiations ) with another proposed user; and
- (c) the first negotiations have not ended;
- (a) applies only to the extent the storage capacity sought is no more than the existing user’s entitlement under the existing agreement in the last year before it is to end according to its provisions; and
- (b) ceases 2 years before the existing agreement ends.