Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies to an eligible applicant for the grant of a cash - bid petroleum exploration whose cash bid under section 111 is less than the reserve price determined under section 110 for the grant of the permit.
Note: The reserve price may be specified in the notice under subsection 110(1) in relation to the grant of the permit, but it need not be (see subsection 110(3B)).
Rejection of applications generally
(2) The Joint Authority must reject the application by written notice to the applicant unless:
(a) the reserve price is not specified in the notice under subsection 110(1); and
(b) the applicant's cash bid is:
(i) the only cash bid, or the highest cash bid, for the grant of the permit that is less than the reserve price; or
(ii) equal to one or more other cash bids which are the only cash bids, or the highest cash bids, for the grant of the permit that are less than the reserve price.
Note: Applications to which paragraphs (a) and (b) apply may be rejected under subsection (3) of this section, or following the grant of the permit to another applicant under section 113. They may also lapse under section 260A if the applicant fails to respond to an offer made under subsection (3) of this section.
Offer of grant of permit at reserve price
(3) The following table applies if:
(a) the reserve price is not specified in the notice under subsection 110(1); and
(b) the only cash bids for the grant of the permit made under section 111 are less than the reserve price.
Offer of grant of permit at reserve price | ||
Item | If ... | then ... |
1 | the applicant's cash bid is: (a) the only cash bid; or (b) the single highest cash bid | the Joint Authority must: (a) give a written notice (called an offer document ) to the applicant telling the applicant that the Joint Authority is prepared to grant the permit to the applicant for a specified permit price that is equal to the reserve price; or (b) reject the application by written notice to the applicant. |
2 | 2 or more applicants ( tied applicants ) make cash bids that are: (a) equal to each other's cash bids; and (b) either the only cash bids, or higher than all the other cash bids | the Joint Authority must: (a) give an offer document to the tied applicant whose cash bid was received earliest telling that tied applicant that the Joint Authority is prepared to grant the permit to the tied applicant for a specified permit price that is equal to the reserve price; or (b) reject the application, and those of all the other tied applicants, by written notice to each tied applicant. |
Note 1: Section 259 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).
Note 2: If an applicant breaches a requirement under section 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document.
(4) In considering whether to give an offer document to an applicant under subsection (3), the Joint Authority must have regard to the difference between the applicant's cash bid and the reserve price.
Refund of deposit to rejected applicants
(5) If the Joint Authority rejects an application under this section, the Titles Administrator, on behalf of the Commonwealth, must refund to the applicant an amount equal to the applicant's deposit under section 111.