(1) In considering an expenditure report for an EL or ELR, the Minister must be satisfied the title holder has complied with the expenditure condition.
Note for subregulation (1)
The Minister may exercise the discretion under section 105 of the Act to cancel the EL or ELR, or cancel the title for part of the title area, for a contravention of a condition.
(2) If the title holder of an EL has contravened the expenditure condition during an operational year when the title area of the EL must be reduced under section 29 of the Act, the Minister need not consider any application made by the title holder under section 29(4) of the Act.
(3) Subregulation (2) does not prevent the Minister from also taking action under section 105 of the Act to cancel the EL for all or part of the title area.
(4) If the title holder of the ELs in a project area contravenes the expenditure condition for the project area:
(a) this regulation applies in relation to all of the ELs for the area; and
(b) the Minister may take the action the Minister considers appropriate in relation to all or any of the ELs.
Examples for subregulation (4)(b)
1 The Minister need not consider an application under section 29(4) of the Act relating to any one or more of the ELs.
2 The Minister may cancel some of the ELs and take no action in relation to the others.
3 The Minister may cancel all of the ELs in relation to some of the blocks in each title area of the ELs.
4 The Minister may cancel all of the ELs.