40Application for licence by holder of permit to which Royalty Act applies

#### 40 Application for licence by holder of permit to which Royalty Act applies (1A) This section applies to a permit to which the Royalty Act applies. (1) A permittee whose permit is in force in respect of a block that constitutes, or the blocks that constitute, a location, may within the application period, make an application to the Designated Authority for the grant by the Joint Authority of a licence: (a) where 9 or more blocks constitute the location concerned—in respect of 5 of those blocks; (b) where 8 or 7 blocks constitute the location concerned—in respect of 4 of those blocks; (c) where 6 or 5 blocks constitute the location concerned—in respect of 3 of those blocks; (d) where 4 or 3 blocks constitute the location concerned—in respect of 2 of those blocks; (e) where 2 blocks constitute the location concerned—in respect of one of those blocks; or (f) where one block constitutes the location concerned—in respect of that block. (2) A permittee whose permit is in force in respect of blocks that constitute a location: (a) instead of making an application under subsection (1) in respect of his primary entitlement, may, within the application period, make an application to the Designated Authority for the grant by the Joint Authority of a licence in respect of a number of those blocks that is less than his primary entitlement; and (b) being the holder of a licence referred to in paragraph (a), may, from time to time within that period, make an application to the Designated Authority for the variation of that licence to include in the licence area a number of those blocks that does not exceed the number, if any, by which his primary entitlement exceeds the number of blocks in respect of which that licence was granted and the number of blocks, if any, included in that licence by reason of any previous variations of that licence. (3) Where: (a) a permittee makes an application under subsection (1) in respect of his primary entitlement; or (b) a permittee who is the holder of a licence in respect of a number of blocks that is less than his primary entitlement makes an application under subsection (2) for a variation of that licence, and the number of blocks in respect of which that licence was granted, together with the number of blocks included, and sought to be included, in the licence area by reason of applications under that subsection, is his primary entitlement; the permittee may, within the application period, make an application to the Designated Authority for the grant by the Joint Authority of a licence in respect of any of the other blocks forming part of the location concerned. (4) Subject to subsection (5), the application period in respect of an application under this section by a permittee is: (a) the period of 2 years after the date on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location; or (b) such other period, not less than 2 years or more than 4 years after that date, as the Designated Authority, on application by the permittee, in writing, served on the Designated Authority before the expiration of the first‑mentioned period of 2 years, allows. (5) Where: (a) a permittee applies for the grant by the Joint Authority of a licence in respect of a block or blocks in respect of which the permittee has applied for a lease under section 38A; and (b) an instrument refusing to grant the lease is served on the permittee pursuant to subsection 38B(2); the application period is whichever of the following periods last expires: (c) the period that is applicable under subsection (4); (d) the period of 12 months after the day of service of the instrument.