42Determination of rate of royalty

#### 42 Determination of rate of royalty (1) Where an application for a primary licence has been made and, before or after the grant of the primary licence, the applicant makes an application for a secondary licence, the Joint Authority shall determine a rate at which royalty is to be payable in respect of petroleum recovered, whether under the primary licence or under the secondary licence, being a rate that is not less than 11% nor more than 121/2% of the value at the well‑head of that petroleum. (2) The Joint Authority shall not, under subsection (1), determine the rate at which royalty is to be payable unless it has given to the applicant an opportunity to confer with the Designated Authority concerning that rate and the Designated Authority has reported to it concerning any such conferring.