Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if an application to renew a petroleum retention lease has been made under section 153.
Refusal on grounds of non - compliance with conditions
(i) the conditions to which the petroleum retention lease is, or has from time to time been, subject; or
(ii) the provisions of this Chapter, Chapter 4, Chapter 5A, Chapter 6 and Part 7.1; or
(iii) the provisions of the regulations;
have not been complied with; and
(b) the Joint Authority is not satisfied that there are sufficient grounds to warrant the granting of the renewal of the petroleum retention lease;
the Joint Authority must, by written notice given to the applicant, refuse to renew the lease.
Note: Consultation procedures apply--see section 262.
Refusal on grounds of commercial viability
(3) If the Joint Authority is satisfied that recovery of petroleum from the lease area is, at the time of the application, commercially viable, the Joint Authority must, by written notice given to the applicant, refuse to renew the lease.
Note: Consultation procedures apply--see section 262.
(4) If the Joint Authority is satisfied that recovery of petroleum from the lease area is unlikely to become commercially viable within the period of 15 years after the time of the application, the Joint Authority must, by written notice given to the applicant, refuse to renew the lease.
Note: Consultation procedures apply--see section 262.
(4A) The Joint Authority must, by written notice given to the applicant, refuse to renew the lease if the Joint Authority is not satisfied that the technical advice and financial resources available to the applicant are sufficient to:
(a) carry out the operations and works that will be authorised by the lease; and
(b) discharge the obligations that will be imposed under this Act, or a legislative instrument under this Act, in relation to the lease.
Note: Consultation procedures apply--see section 262.
(4B) The Joint Authority may, by written notice given to the applicant, refuse to renew the lease if the Joint Authority is not satisfied of the matters (if any) prescribed by the regulations.
Note: Consultation procedures apply--see section 262.
Application for petroleum production licence within 12 months after refusal
(5) A notice of refusal under subsection (3) must contain a statement to the effect that the lessee may, within 12 months after the notice was given, apply for a petroleum production licence over one or more of the blocks comprised in the lease.
(a) the Joint Authority makes a decision under subsection (3) refusing to renew the lease; and
(b) a notice of refusal is given to the applicant; and
(c) within 12 months after the notice was given, the lessee applies for a petroleum production licence over one or more of the blocks comprised in the lease; and
(d) the lease would, apart from this subsection, expire:
(i) before the Joint Authority grants, or refuses to grant, the petroleum production licence; or
(ii) before the application lapses;
the lease continues in force until:
(e) the Joint Authority grants, or refuses to grant, the petroleum production licence; or
(a) the Joint Authority makes a decision under subsection (3) refusing to renew the lease; and
(b) a notice of refusal is given to the applicant; and
(c) subsection (6) does not apply; and
(d) the lease would, apart from this subsection, expire within 12 months after the notice was given;
the lease continues in force until the end of the 12 - month period beginning on the day on which the notice was given.
(8) Subsections (6) and (7) have effect subject to this Chapter but despite section 139.
Note: See the notes at the end of section 139.