31Application for renewal of permit to be in respect of reduced

31 Application for renewal of permit to be in respect of reduced area (1) Subject to subsection (3), the number of blocks in respect of which an application for the renewal of a permit may be made shall not exceed the number calculated as follows: (a) where the number of blocks in respect of which the permit is in force is a number that is divisible by 2 without remainder – one-half of that number; or (b) where the number of blocks in respect of which the permit is in force is a number that is one less or one more than a number that is divisible by 4 without remainder – one-half of that last- mentioned number. (2) A block that is, or is included in, a location and in respect of which a permit is in force shall not be regarded as a block in respect of which the permit is in force for the purpose of making a calculation under subsection (1). (3) An application for the renewal of a permit may include, in addition to the blocks referred to in subsection (1), a block that is, or is included in, a location and in respect of which the permit is in force, or 2 or more such blocks. (4) The blocks specified in an application for the renewal of a permit shall be blocks that are constituted by or are within graticular sections that: (a) constitute a single area or a number of discrete areas; and (b) are such that each graticular section in the area, or in each area, has a side in common with at least one other graticular section in that area.

Petroleum (Submerged Lands) Act 1981 27 (5) Where the number of blocks in respect of which an application for the renewal of a permit may be made is 16 or more, each area constituted by blocks in respect of which the application is made shall be constituted by not less than 16 blocks. (6) Where the maximum number of blocks in respect of which an application for the renewal of a permit may be made in accordance with the preceding provisions of this section is less than 16, the Minister may, by notice in writing served on the permittee: (a) inform the permittee that the number of blocks in respect of which the application may be made is such number, not exceeding 16, as is specified in the notice; and (b) give such directions as he thinks fit concerning the blocks in respect of which the application may be made. (7) The Minister may: (a) direct that subsections (4) and (5) do not apply to or in relation to a proposed application for the renewal of a permit; and (b) give such directions concerning the blocks in respect of which that application may be made.