40BApplication for licence by holder of lease to which Royalty Act applies

#### 40B Application for licence by holder of lease to which Royalty Act applies (1) This section applies to a lease to which the Royalty Act applies. (2) A lessee whose lease is in force may make an application to the Designated Authority for the grant by the Joint Authority of a licence: (a) where the lease is in respect of 9 or more blocks—in respect of 5 of those blocks; (b) where the lease is in respect of 8 or 7 blocks—in respect of 4 of those blocks; (c) where the lease is in respect of 6 or 5 blocks—in respect of 3 of those blocks; (d) where the lease is in respect of 4 or 3 blocks—in respect of 2 of those blocks; (e) where the lease is in respect of 2 blocks—in respect of one of those blocks; or (f) where the lease is in respect of one block—in respect of that block. (3) At any time while a lease is in force, the lessee may, instead of making an application under subsection (2) in respect of the lessee’s primary entitlement, make an application to the Designated Authority for the grant by the Joint Authority of a licence in respect of a number of blocks that is less than the lessee’s primary entitlement. (4) Where an application has been made under subsection (2) in respect of the lessee’s primary entitlement, the lessee may, at any time while the lease concerned is in force, 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 lease.