38HConditions of lease

#### 38H Conditions of lease (1) A lease may be granted subject to such conditions as the Joint Authority thinks fit and are specified in the lease. (2) The conditions referred to in subsection (1) may include conditions with respect to work to be carried out by the lessee in or in relation to the lease area during the term of the lease, or amounts to be expended by the lessee in the carrying out of such work, or conditions with respect to both of those matters, including conditions requiring the lessee to comply with directions given in accordance with the lease concerning those matters. (3) A lease shall be deemed to contain: (a) in the case of a lease to which the Royalty Act applies—a condition that the lessee will comply with the provisions of the Royalty Act as in force from time to time; and (b) a condition that the lessee will, within the period of 3 months after the receipt of a written notice from the Designated Authority requesting the lessee to do so or within such further period as the Designated Authority, on application in writing served on the Designated Authority before the end of the first‑mentioned period, allows, re‑evaluate the commercial viability of petroleum production in the lease area (otherwise than by the drilling of wells) and inform the Designated Authority in writing of the results of the re‑evaluation. (4) Where a lessee has complied with a notice of the kind referred to in paragraph (3)(b) during the term of the lease, the Designated Authority shall not give to the lessee during that term a further notice of that kind.