South Australian Numbered Acts South Australian Numbered Acts21—Substitution of sections 28 and 29
Sections 28 and 29—delete the sections and substitute:
28—Retention licences
(1) There will be
3 categories of retention licence:
(a) a
"petroleum retention licence";
(b) a
"geothermal retention licence";
(c) a
"gas storage retention licence".
(2) A retention
licence protects the interests of the licensee in a regulated resource of the
kind relevant to the category of the licence for a reasonable period in
connection with 1 or more of the following purposes:
(a) to
facilitate—
(i)
proper evaluation of the productive potential of a
discovery that has been made by the licensee; or
(ii)
carrying out the work necessary to bring the discovery to
commercial production; or
(iii)
without limiting a preceding subparagraph, in the case of
a gas storage retention licence—the testing of the natural reservoir for
the storage of petroleum or another regulated substance;
(b)
without limiting paragraph (a), to provide a means by which the licensee
may maintain an interest in a regulated resource until production is
commercially feasible (subject to limits and conditions under this Act);
(c) to
facilitate other activities considered appropriate by the Minister.
(3) Accordingly, a
retention licence authorises the licensee to carry out in the licence area
(according to the terms of the licence)—
(a)
operations to establish the nature and extent of a discovery of regulated
resources; and
(b)
operations to establish the commercial feasibility of production and
appropriate production techniques; and
(c)
other regulated activities specified in the licence.