39ENotice of intention to cancel lease

#### 39E Notice of intention to cancel lease 39E Notice of intention to cancel lease > > (1) Where— > > > > > (a) a lessee has been given a notice of the kind referred to in section 39H (3) during the term of the lease and has carried out, and has informed the Minister of the results of, the re-evaluation required by the notice, > > > > > (b) the lessee has not made an application for the renewal of the lease, and > > > > > (c) after consideration of the results of the re-evaluation referred to in paragraph (a) and such other matters as the Minister thinks fit, the Minister is of the opinion that recovery of petroleum from the lease area is commercially viable, > > > > the Minister may serve on the lessee and on such other persons as the Minister thinks appropriate an instrument in writing— > > > > > (d) informing the lessee or the other person that the Minister has formed that opinion and that the Minister intends to cancel the lease, and > > > > > (e) stating that the lessee or the other person may serve an instrument in writing on the Minister within the period specified in the firstmentioned instrument, not being a period ending earlier than one month after the date of service of the firstmentioned instrument, setting out any matters that the lessee or the other person, as the case may be, wishes to be considered. > > > (2) Where— > > > > > (a) an instrument under subsection (1) is served on a lessee, and > > > > > (b) the lessee does not, within the period referred to in subsection (1) (e), serve on the Minister an instrument setting out matters that the lessee wishes to be considered or the Minister, after consideration of matters set out in an instrument served on the Minister by the lessee within that period, determines that the lease should be cancelled, > > > > the Minister shall, by instrument in writing served on the lessee, cancel the lease. > > > (3) The cancellation of a lease under subsection (2) has effect— > > > > > (a) in a case to which paragraph (b) does not apply—at the end of the period of 12 months commencing on the date of service of the instrument of cancellation, or > > > > > (b) in a case where the lessee makes an application for a licence in respect of one or more of the blocks comprised in the lease within the period referred to in paragraph (a)—when the Minister grants, or refuses to grant, the licence or when the application lapses, whichever first happens. > > > (4) Where a lease is cancelled under subsection (2), the lease shall be deemed to continue in force in all respects until the cancellation has effect in accordance with subsection (3). > > **ss 39C–39E:** Ins 1986 No 59, Sch 4.