65Grant or refusal of pipeline licence

#### 65 Grant or refusal of pipeline licence Notification of preparedness to grant pipeline licence relating to licence area to person other than production licensee (1) Where a person makes an application in accordance with section 64 for a pipeline licence in respect of the construction in an adjacent area, or a part of an adjacent area, of a pipeline for the conveyance of petroleum recovered in a licence area within or outside that, or another, adjacent area, or a part of an adjacent area, the Joint Authority may, if: (a) that person is not the registered holder of the production licence for that licence area; and (b) the application has not been rejected under subsection 64(3); inform that person, by instrument in writing served on the person, that it is prepared to grant the person a pipeline licence. Notification of preparedness to grant pipeline licence relating to licence area to production licensee (2) Where an application for a pipeline licence in respect of the construction in an adjacent area, or a part of an adjacent area, of a pipeline for the conveyance of petroleum recovered in a licence area is made in accordance with section 64 by the registered holder of the production licence for that licence area (the licensee), the Joint Authority: (a) shall, if the conditions to which the production licence for that licence area is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with; or (b) may, if: (i) any of the conditions to which the production licence for that licence area 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 (ii) the Joint Authority is, nevertheless, satisfied that special circumstances exist that justify the granting of a pipeline licence; by instrument in writing served on the person who is then the registered holder of the production licence for that licence area (the licensee), inform the person that it is prepared to grant to the person a pipeline licence. Notification of preparedness to grant other pipeline licences (2A) If a person makes an application in accordance with section 64 for a pipeline licence in respect of the construction in an adjacent area, or a part of an adjacent area, of a pipeline for the conveyance of petroleum recovered from a place beyond the outer limits of any adjacent area, the Joint Authority may inform the person, by instrument in writing served on the person, that it is prepared to grant the person a pipeline licence. Joint Authority may refuse to grant pipeline licence relating to licence area if production licence conditions not complied with, etc. (3) Where an application for a pipeline licence in respect of the construction in an adjacent area, or a part of an adjacent area, of a pipeline for the conveyance of petroleum recovered in a licence area is made in accordance with section 64 by the registered holder of the production licence for that licence area (the licensee), the Joint Authority shall, if: (a) any of the conditions to which the production 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 (b) the Joint Authority is not satisfied that special circumstances exist that justify the granting of a pipeline licence; by instrument in writing served on the person who is then the registered holder of the production licence for that licence area (the licensee), refuse to grant a pipeline licence. Joint Authority must not refuse to grant pipeline licence to production licensee under subsection (3) unless notice given (4) The Joint Authority shall not, under subsection (3), refuse to grant a pipeline licence for the conveyance of petroleum recovered in a licence area to the registered holder of the production licence for that area (the licensee) 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 pipeline 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. Joint Authority may refuse to grant pipeline licence relating to a licence area to a person other than the production licensee (5) Where a person other than the registered holder of the production licence for a licence area makes an application in accordance with section 64 for a pipeline licence in respect of the construction of a pipeline for the conveyance of petroleum recovered in that licence area, the Joint Authority may, by instrument in writing served on the applicant, refuse to grant a pipeline licence. Instrument indicating preparedness to grant a pipeline licence must specify route of pipeline and conditions of licence (7) An instrument under subsection (1), (2) or (2A): (a) shall specify the route to be followed by the pipeline; (b) shall contain a summary of the conditions subject to which the pipeline licence is to be granted; and (c) shall contain a statement to the effect that the application will lapse if the applicant does not make a request under subsection (9). Route to be specified in respect of all pipeline licences (8) The route to be specified in an instrument under subsection (1), (2) or (2A) shall be: (a) the route shown in the plan accompanying the application; or (b) if the Joint Authority is of the opinion that, for any reason, that route is not appropriate—a route that, in the opinion of the Joint Authority, is appropriate. All persons notified of preparedness to grant pipeline licence have 3 months to request grant of licence (9) A person on whom there has been served an instrument under subsection (1), (2) or (2A) may, within a period of 3 months after the date of service of the instrument on him, or within such further period, not exceeding 3 months, as the Designated Authority on application in writing served on him before the expiration of the first‑mentioned period of 3 months, allows, by instrument in writing served on the Designated Authority, request the Joint Authority to grant to the person the pipeline licence. If request for grant of pipeline licence is made within due time, Joint Authority must grant licence (10) Where a person on whom there has been served an instrument under subsection (1), (2) or (2A) has made a request under subsection (9) within the period applicable under subsection (9), the Joint Authority shall grant to that person a licence to construct and operate a pipeline in respect of the pipeline specified in the instrument. If grant of pipeline licence not requested within time, application for licence lapses (11) Where a person on whom there has been served an instrument under subsection (1), (2) or (2A) has not made a request under subsection (9) within the period applicable under subsection (9), the application lapses upon the expiration of that period.