38GGrant or refusal of renewal of lease

#### 38G Grant or refusal of renewal of lease (1) Where: (a) an application for the renewal of a lease has been made under section 38F; (b) any further information required by the Designated Authority under subsection 38F(4) has been furnished in accordance with that subsection; (c) the Joint Authority is satisfied that recovery of petroleum from the lease area: (i) is not, at the time of the application, commercially viable; and (ii) is likely to become commercially viable within the period of 15 years after that time; the Joint Authority: (d) shall, if the conditions to which the lease is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with; or (e) may, if: (i) any of the conditions to which the lease is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with; and (ii) the Joint Authority is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the lease; by instrument in writing served on the person who is then the lessee, inform the person that it is prepared to grant to the person the renewal of the lease. (2) Subject to subsection (3), where an application for the renewal of a lease has been made under section 38F and: (a) any further information required by the Designated Authority under subsection 38F(4) has not been furnished in accordance with that subsection; (b) the Joint Authority is not satisfied as to the matters referred to in paragraph (1)(c); or (c) any of the conditions to which the permit is, or has from time to time been, subject or any of the provisions of this Part and of the regulations has not been complied with and the Joint Authority is not satisfied that special circumstances exist that justify the granting of the renewal of the lease; the Joint Authority shall, by instrument in writing served on the person who is then the lessee, refuse to grant the renewal of the lease. (3) The Joint Authority shall not refuse to grant the renewal of the lease unless: (a) it has, by instrument in writing served on the lessee, given not less than one month’s notice of its intention to refuse to grant the renewal of the lease; (b) it has served a copy of the instrument on such other persons, if any, as it thinks fit; (c) it has, in the instrument: (i) given particulars of the reasons for the intention; and (ii) specified a date on or before which the lessee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Designated Authority, submit any matters that the lessee wishes to be considered; and (d) it has taken into account any matters so submitted on or before the specified date by the lessee or by a person on whom a copy of the first‑mentioned instrument has been served. (4) An instrument referred to in subsection (1) shall contain: (a) a summary of the conditions to which the lease, on the grant of the renewal, is to be subject; and (b) a statement to the effect that the application will lapse if the lessee does not make a request under subsection (6). (5) An instrument under subsection (2) shall, where the Joint Authority refuses to grant the renewal of a lease by reason only that the Joint Authority is not satisfied as to the matter referred to in subparagraph (1)(c)(i), contain a statement to the effect that the lessee may, within the period of 12 months after the date of service of the instrument, make an application for a licence in respect of one or more of the blocks comprised in the lease. (6) A lessee on whom there has been served an instrument under subsection (1) may, within a period of one month after the date of service of the instrument on the lessee, by instrument in writing served on the Designated Authority, request the Joint Authority to grant the renewal of the lease to the lessee. (7) Where a lessee on whom there has been served an instrument under subsection (1) has made a request under subsection (6) within the period referred to in subsection (6), the Joint Authority shall grant to the lessee the renewal of the lease. (8) Where a lessee on whom there has been served an instrument under subsection (1) has not made a request under subsection (6) within the period referred to in subsection (6), the application lapses upon the expiration of that period. (9) Where: (a) an application for the renewal of a lease has been made; and (b) the lease expires: (i) before the Joint Authority grants, or refuses to grant, the renewal of the lease; or (ii) before the application lapses as provided by subsection (8); the lease shall be deemed to continue in force in all respects: (c) until the Joint Authority grants, or refuses to grant, the renewal of the lease; or (d) until the application so lapses; whichever first happens. (10) Where the Joint Authority refuses to grant the renewal of a lease by reason only that the Joint Authority is not satisfied as to the matter referred to in subparagraph (1)(c)(i), the lease shall be deemed to continue in force in all respects: (a) in a case to which paragraph (b) does not apply—until 12 months after the date of service of the instrument under subsection (2); 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 of 12 months after the date referred to in paragraph (a)—until the Joint Authority grants, or refuses to grant, the licence or until the application lapses, whichever first happens.