50Notifications of commencement of commercial production

50 Notifications of commencement of commercial production

50 Notifications of commencement of commercial production

(Former clause 25 of 2007 Reg)

(1) It is a condition of every assessment lease or production lease in force under the Act that—

(a) the holder of the lease must notify the Secretary in writing of the date on which commercial production first commences on the land to which the lease relates, and

(b) the notification must be given within the period of 7 days after that date.

(2) In this clause—

commercial production of petroleum means the use by, or supply to, any person (including the holder of a petroleum title or of a mining lease under the Mining Act 1992) of any petroleum extracted from an area of land to which a petroleum title or mining lease relates for any purpose (but not for well assessment, flaring or equipment testing that does not result in the generation of energy or supply of petroleum for commercial purposes).