55Grant or refusal of renewal of licence

#### 55 Grant or refusal of renewal of licence (1) Where: (a) an application for the renewal of a licence has been made under section 54; and (b) the conditions to which the licence is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with; the Joint Authority: (c) must if: (i) the application is in respect of the first renewal of the licence; or (ii) the application is in respect of a renewal of the licence other than the first renewal and operations for the recovery of petroleum have been carried on in the licence area within 5 years before the application for the renewal was made; or (d) may in any other case; by instrument in writing served on the person who is then the licensee, inform the person that it is prepared to grant to the person the renewal of the licence. (2) Where: (a) an application for the renewal of a licence has been made under section 54; and (b) any of the conditions to which the licence 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, but the Joint Authority is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the licence; the Joint Authority may, by instrument in writing served on the person who is then the licensee, inform the person that it is prepared to grant to the person the renewal of the licence. (3) If any of the conditions to which the licence 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 if the Joint Authority is not satisfied that special circumstances exist that justify the granting of the renewal of the licence, the Joint Authority shall, subject to subsection (4), by instrument in writing served on the person who is then the licensee, refuse to grant the renewal of the licence. (4) The Joint Authority shall not, under subsection (3), refuse to grant the renewal of a licence unless: (a) it has, by instrument in writing served on the licensee, given not less than one month’s notice of its intention to refuse to grant the renewal of the licence; (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 licensee 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 he wishes to be considered; and (d) it has taken into account any matters so submitted on or before the specified date by the licensee or by a person on whom a copy of the first‑mentioned instrument has been served. (5) Where an application has been made under section 54 in respect of a renewal other than the first renewal of the licence, the Joint Authority may, by instrument in writing served on the person who is then the licensee, refuse to grant the renewal of the licence. (7) An instrument under subsection (1) or (2) shall contain: (a) a summary of the conditions to which the licence, on the grant of the renewal, is to be subject; and (b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (8). (8) A licensee on whom there has been served an instrument under subsection (1) or (2) may, within a period of one month after the date of service of the instrument on the licensee, by instrument in writing served on the Designated Authority, request the Joint Authority to grant the renewal of the licence to the licensee. (9) Where a licensee on whom there has been served an instrument under subsection (1) or (2) has made a request under subsection (8) within the period referred to in subsection (8), the Joint Authority shall grant to him the renewal of the licence. (10) Where a licensee on whom there has been served an instrument under subsection (1) or (2) has not made a request under subsection (8) within the period referred to in subsection (8), the application lapses upon the expiration of that period. (11) Where: (a) an application for the renewal of a licence is made under section 54; and (b) the licence expires: (i) before the Joint Authority grants, or refuses to grant, the renewal of the licence; or (ii) before the application lapses as provided by subsection (10); the licence shall be deemed to continue in force in all respects: (c) until the Joint Authority grants, or refuses to grant, the renewal of the licence; or (d) until the application so lapses; whichever first happens.