(1) This section applies if, after taking away all blocks or sub-blocks that, under section 113, can not be counted for the relinquishment condition, the balance of the blocks of the geothermal permit's area is less than the blocks or sub-blocks required to be relinquished under section 111.
(2) The relinquishment condition is taken to have been complied with if the geothermal permit holder gives a relinquishment notice for all of the balance.
(3) However, subsection (4) applies if--
(a) a block or sub-block not counted for the relinquishment condition was the subject of a geothermal lease application or potential geothermal commercial area; and
(b) the application is refused.
(4) The geothermal permit holder must, within 20 business days after the appeal period for the decision to refuse, give a relinquishment notice to the extent necessary to comply with section 111.