Div 2ARetention leases for petroleum

Division 2A—Retention leases for petroleum 37A—Application by permittee for lease (1) A permittee whose permit is in force in respect of a block that constitutes, or the blocks that constitute, a location may, within the application period, make an application to the Minister for the grant of a lease in respect of that block, or in respect of one or more of those blocks, as the case may be. (2) An application under subsection (1)— (i) the proposals of the applicant for work and expenditure in respect of the area comprised in the blocks specified in the application; and (ii) the commercial viability of the recovery of petroleum from the area comprised in the blocks specified in the application at the time of the application, and particulars of the possible future commercial viability of the recovery of petroleum from that area; and (d) may set out any other matters that the applicant wishes to be considered; and (3) The Minister may, at any time, by instrument in writing served on the applicant, require the applicant to furnish, within the time specified in the instrument, further information in writing in connection with the application. (4) The application period in respect of an application under this section by a permittee is— (a) the period of 2 years after the date on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location; or (b) such other period, not less than 2 years or more than 4 years after that date, as the Minister, on application in writing by the permittee, served on the Minister before the end of the firstmentioned period of 2 years, allows. 37B—Grant or refusal of lease in relation to application (a) an application has been made under section 37A; and (b) the applicant has furnished any further information as and when required by the Minister under section 37A(3); and (c) the Minister is satisfied that recovery of petroleum from the area comprised in the blocks specified in the application— (i) is not, at the time of the application, commercially viable; and (ii) is likely to become commercially viable within the period of 15 years after that time, the Minister shall, by instrument in writing served on the applicant, inform the applicant that the Minister is prepared to grant to the applicant a lease in respect of the block or blocks specified in the application. (2) Where an application has been made under section 37A and— (a) the applicant has not furnished any further information as and when required by the Minister under section 37A(3); or (b) the Minister is not satisfied as to the matters referred to in subsection (1)(c) in relation to the blocks specified in the application, the Minister shall, by instrument in writing served on the applicant, refuse to grant a lease to the applicant. (3) An instrument under subsection (1) shall contain— (a) a summary of the conditions subject to which the lease is to be granted; and (b) a statement to the effect that the application will lapse if the applicant does not make a request under subsection (4) in respect of the grant of the lease. (4) An applicant on whom there has been served an instrument under subsection (1) may, within a period of one month after the date of service of the instrument, or within such further period, not exceeding one month, as the Minister, on application in writing served on the Minister before the end of the firstmentioned period of one month, allows, by instrument in writing served on the Minister, request the Minister to grant the lease to the applicant. (5) Where an applicant on whom there has been served an instrument under subsection (1) has made a request under subsection (4) within the period applicable under subsection (4), the Minister must grant to the applicant a retention lease in respect of the block or blocks specified in the instrument. (6) Where an applicant on whom there has been served an instrument under subsection (1) has not made a request under subsection (4) within the period applicable under subsection (4), the application lapses upon the expiration of that period. (7) On the day on which a lease granted under this section in respect of a block or blocks comes into force, the permit in respect of the block or blocks ceases to be in force in respect of those blocks. 37BA—Application of sections 37A and 37B where permit is transferred (a) after an application has been made under section 37A(1) in relation to a block or blocks in respect of which a permit is in force; and (b) before a decision has been made by the Minister under section 37B(1) or (2) in relation to the application, a transfer of the permit is registered under section 77, sections 37A and 37B have effect, after the time of the transfer, as if a reference in those sections to the applicant were a reference to the transferee. 37C—Rights conferred by lease A lease, while it remains in force, authorises the lessee, subject to this Act and in accordance with the conditions to which the lease is subject, to explore for petroleum, and to carry on such operations and execute such works as are necessary for that purpose, in the lease area. 37D—Term of lease Subject to this Part, a lease (whether granted by way of renewal of a lease or otherwise) remains in force for a period of 5 years commencing on the day on which the lease was granted or, if a later day is specified in the lease as being the day on which the lease is to come into force, on that later day. 37E—Notice of intention to cancel lease (a) a lessee has been given a notice of the kind referred to section 37H(3)(b) during the term of the lease and has carried out, and has informed the Minister of the results of, the re-evaluation required by the notice; and (b) the lessee has not made an application for the renewal of the lease; and (c) after consideration of the results of the re-evaluation referred to in paragraph (a) and such other matters as the Minister thinks fit, the Minister is of the opinion that recovery of petroleum from the lease area is commercially viable, the Minister may serve on the lessee and on such other persons as the Minister thinks appropriate an instrument in writing— (d) informing the lessee or the other person that the Minister has formed that opinion and that the Minister intends to cancel the lease; and (e) stating that the lessee or the other person may serve an instrument in writing on the Minister within the period specified in the firstmentioned instrument, not being a period ending earlier than one month after the date of service of the firstmentioned instrument, setting out any matters that the lessee or the other person, as the case may be, wishes to be considered. (a) an instrument under subsection (1) is served on a lessee; and (b) the lessee does not, within the period referred to in subsection (1)(e), serve on the Minister an instrument setting out matters that the lessee wishes to be considered or the Minister, after consideration of matters set out in an instrument served on the Minister by the lessee within that period, determines that the lease should be cancelled, the Minister shall, by instrument in writing served on the lessee, cancel the lease. (3) The cancellation of a lease under subsection (2) has effect— (a) in a case to which paragraph (b) does not apply—at the end of the period of 12 months commencing on the date of service of the instrument of cancellation; or (b) in a case where the lessee makes an application for a licence in respect of one or more of the blocks comprised in the lease within the period referred to in paragraph (a)—when the Minister grants, or refuses to grant, the licence or when the application lapses, whichever first happens. (4) Where a lease is cancelled under subsection (2), the lease shall be deemed to continue in force in all respects until the cancellation has effect in accordance with subsection (3). 37F—Application for renewal of lease (1) A lessee may, from time to time, make an application to the Minister for the renewal of the lease. (2) An application for the renewal of a lease— (b) subject to subsection (3), shall be made in an approved manner not less than 6 months or more than 12 months before the day on which the lease ceases to be in force; and (i) the proposals of the applicant for work and expenditure in respect of the lease area; and (ii) particulars of the commercial viability of recovery of petroleum from the lease at the time of the application and particulars of the possible future commercial viability of recovery of petroleum from the lease area; and (d) shall be accompanied by the prescribed fee. (3) The Minister may, for reasons that the Minister thinks sufficient, receive an application for the renewal of the lease less than 6 months before, but not in any case after, the day on which the lease ceases to be in force. (4) Where an application has been made for the renewal of a lease, the Minister may, at any time, by instrument in writing served on the lessee, require the lessee to furnish, within the time specified in the instrument, further information in writing in connection with the application. 37G—Grant or refusal of renewal of lease (a) an application for the renewal of a lease has been made under section 37F; and (b) any further information required by the Minister under section 37F(4) has been furnished in accordance with that section; and (c) the Minister is satisfied that recovery of petroleum from the lease area— (i) is not, at the time of the application, commercially viable; and (ii) is likely to become commercially viable within the period of 15 years after that time, the Minister— (d) must, if the conditions to which the lease is, or has from time to time been, subject and the provisions of this Part and of the regulations have been complied with; or (e) may, if— (i) any of the conditions to which the lease is, or has from time to time been, subject or any of the provisions of this Part or of the regulations has not been complied with; and (ii) the Minister is, nevertheless, satisfied that special circumstances exist that justify the granting of the renewal of the lease, by instrument in writing served on the person who is then the lessee, inform the person that the Minister is prepared to grant to the person the renewal of the lease. (2) Subject to subsection (3), where an application for the renewal of a lease has been made under section 37F and— (a) any further information required by the Minister under section 37F(4) has not been furnished in accordance with that section; or (b) the Minister is not satisfied as to the matters referred to in subsection (1)(c); or (c) any of the conditions to which the permit is, or has from time to time been, subject or any of the provisions of this Part or of the regulations has not been complied with and the Minister is not satisfied that special circumstances exist that justify the granting of the renewal of the lease, the Minister must, by instrument in writing served on the person who is then the lessee, refuse to grant the renewal of the lease. (3) The Minister shall not refuse to grant the renewal of the lease unless— (a) the Minister has, by instrument in writing served on the lessee, given not less than one month's notice of his or her intention to refuse to grant the renewal of the lease; and (b) the Minister has served a copy of the instrument on such other persons, if any, as he or she thinks fit; and (c) the Minister has, in the instrument— (ii) specified a date on or before which the lessee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that the lessee wishes to be considered; and (d) the Minister has taken into account any matters so submitted on or before the specified date by the lessee or by a person on whom a copy of the firstmentioned instrument has been served. (4) An instrument referred to in subsection (1) shall contain— (a) a summary of the conditions to which the lease, on the grant of the renewal, is to be subject; and (b) a statement to the effect that the application will lapse if the lessee does not make a request under subsection (6). (5) An instrument under subsection (2) shall, where the Minister refuses to grant the renewal of a lease by reason only that he or she is not satisfied as to the matter referred to in subsection (1)(c)(i), contain a statement to the effect that the lessee may, within the period of 12 months after the date of service of the instrument, make an application for a licence in respect of one or more of the blocks comprised in the lease. (6) A lessee on whom there has been served an instrument under subsection (1) may, within a period of one month after the date of service of the instrument on the lessee, by instrument in writing served on the Minister, request the Minister to grant to the lessee the renewal of the lease. (7) Where a lessee on whom there has been served an instrument under subsection (1) has made a request under subsection (6) within the period referred to in subsection (6), the Minister must grant to the lessee the renewal of the lease. (8) Where a lessee on whom there has been served an instrument under subsection (1) has not made a request under subsection (6) within the period referred to in subsection (6), the application lapses upon the expiration of that period. (9) Where— (a) an application for the renewal of a lease has been made; and (b) the lease expires— (i) before the Minister grants, or refuses to grant, the renewal of the lease; or (ii) before the application lapses as provided by subsection (8), the lease shall be deemed to continue in force in all respects— (c) until the Minister grants, or refuses to grant, the renewal of the lease; or (10) Where the Minister refuses to grant the renewal of a lease by reason only that the Minister is not satisfied as to the matter referred to in subsection (1)(c)(i), the lease shall be deemed to continue in force in all respects— (a) in a case to which paragraph (b) does not apply—until 12 months after the date of service of the instrument under subsection (2); or (b) in a case where the lessee makes an application for a licence in respect of one or more of the blocks comprised in the lease within the period of 12 months after the date referred to in paragraph (a)—until the Minister grants, or refuses to grant, the licence or until the application lapses, whichever first happens. 37H—Conditions of lease (1) A lease may be granted subject to such conditions as the Minister thinks fit and are specified in the lease. (2) The conditions referred to in subsection (1) may include conditions with respect to work to be carried out by the lessee in or in relation to the lease area during the term of the lease, or amounts to be expended by the lessee in the carrying out of such work, or conditions with respect to both of those matters, including conditions requiring the lessee to comply with directions given in accordance with the lease concerning those matters. (3) A lease shall be deemed to contain— (a) a condition that the lessee will comply with the provisions of this Act; and (b) a condition that the lessee will, within the period of 3 months after the receipt of a written notice from the Minister requesting the lessee to do so or within such further period as the Minister, on application in writing served on the Minister before the end of the firstmentioned period, allows, re-evaluate the commercial viability of petroleum production in the lease area (otherwise than by the drilling of wells) and inform the Minister in writing of the results of the re-evaluation (4) Where a lessee has complied with a notice of the kind referred to in paragraph (3)(b) during the term of the lease, the Minister shall not give to the lessee during that term a further notice of that kind 37J—Discovery of petroleum to be notified (1) Where petroleum is discovered in a lease area, the lessee— (a) shall forthwith inform the Minister of the discovery; and (b) shall, within a period of 3 days after the date of the discovery, furnish to the Minister particulars in writing of the discovery. (2) Where petroleum is discovered in a lease area, the Minister may, from time to time, by instrument in writing served on the lessee, direct the lessee to furnish to the Minister, within the period specified in the instrument, particulars in writing of any one or more of the following: (a) the chemical composition and physical properties of the petroleum; (b) the nature of the subsoil in which the petroleum occurs; (c) any other matters relating to the discovery that are specified by the Minister in the instrument. 37K—Directions by Minister on discovery of petroleum (1) Where petroleum is discovered in a lease area, the Minister may, by instrument in writing served on the lessee, direct the lessee to do, within the period specified in the instrument, such things as the Minister thinks necessary and specifies in the instrument to determine the chemical composition and physical properties of that petroleum and to determine the quantity of petroleum in the petroleum pool to which the discovery relates or, if part only of that petroleum pool is within the lease area, in such part of that petroleum pool as is within the lease area.