86Reduction of royalty in certain cases

#### 86 Reduction of royalty in certain cases 86 Reduction of royalty in certain cases > > (1) If— > > > > > (a) the Minister is satisfied that the rate of recovery of petroleum from a well has become so reduced that, having regard to the rate or rates of royalty applicable under this Act, further recovery of petroleum from that well would be uneconomic, or > > > > > (b) petroleum is being recovered by the holder of a title as a consequence of a requirement made under this Act, or > > > > > (c) other circumstances exist which, in the opinion of the Minister, justify a determination under this section, > > > > the Minister may, by instrument in writing, determine that the royalty in respect of all or any of the petroleum recovered from that well on or after a date specified in the determination is to be at such rate (being a rate lower than the rate that would be otherwise applicable) as the Minister specifies. > > > (2) The Minister may, by instrument in writing, revoke or vary a determination under this section and the revocation or variation applies to petroleum recovered on or after a date specified in the instrument. > > > (3) Determinations of the Minister under this section have effect despite the regulations. > > > (4) The Chief Commissioner is to remit the interest or penalty tax on any royalty that ceases to be payable because of a decision of the Minister under this section. > > **s 86:** Am 2014 No 37, Sch 4.6 \[4\].