59Unit development

59 Unit development (1) In this section, the expression unit development: (a) applies in relation to a petroleum pool that is partly in a particular licence area of a licensee and partly in a licence area of another licensee or in an area that is not within an adjacent area but in which a person other than the first- mentioned licensee is lawfully entitled to carry on operations for the recovery of petroleum from the pool; and (b) means the carrying on of operations for the recovery of petroleum from that pool under co-operative arrangements between the persons entitled to carry on such operations in each of those areas. (2) A licensee may, from time to time, enter into an agreement in writing for or in relation to the unit development of a petroleum pool, but nothing in this subsection derogrates from the operation of section 81(2). (3) The Minister of his own motion or on application made to him in writing by: (a) a licensee in whose licence area there is a part of a particular petroleum pool; or

Petroleum (Submerged Lands) Act 1981 61 (b) a person who is lawfully entitled to carry on operations for the recovery of petroleum in an area outside an adjacent area that includes part of a particular petroleum pool that extends into the adjacent area, may for the purpose of securing the more effective recovery of petroleum from the petroleum pool, direct any licensee whose licence area includes part of the petroleum pool, by instrument in writing served on the licensee, to enter into an agreement in writing, within the period specified in the notice, for or in relation to the unit development of the petroleum pool and to lodge an application in accordance with section 81 for approval of any dealing to which the agreement relates. (a) a licensee who is directed, under subsection (3), to enter into an agreement for or in relation to the unit development of a petroleum pool does not enter into such an agreement within the specified period; or (b) the licensee enters into such an agreement but an application for approval of a dealing to which the agreement relates is not lodged with the Minister or, if an application is so lodged, the dealing is not approved under section 81, the Minister may, by notice in writing served on the licensee, direct the licensee to submit to him, within the period specified in the notice, a scheme for or in relation to the unit development of the petroleum pool. (5) At any time after the expiration of the period within which a scheme for or in relation to the unit development of a petroleum pool is to be submitted by a licensee under subsection (4), the Minister may, by notice in writing served on the licensee, give to the licensee such directions as the Minister thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool. (6) Where a person is the licensee in respect of 2 or more licence areas in each of which there is part of a particular petroleum pool, the Minister may, by notice in writing served on the licensee, give to the licensee such directions as the Minister thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool. (7) Where an agreement under this section is in force or the Minister has given directions under subsection (5) or (6), the Minister may, having regard to additional information that has become available,