(1)  The Director may, on his or her own initiative, vary an environmental licence, including a licence granted by the Board.

(2)  The Director may only vary an environmental licence under subsection (1) if the Director –

(a) has, at least 14 days before varying the licence, issued a notice to the holder of the environmental licence –

(i) specifying the proposed variation; and

(ii) specifying the reasons why the Director proposes to vary the licence; and

(iii) inviting the holder of the environmental licence to provide to the Director, within 14 days after receiving the notice, written reasons as to why the licence ought not be varied as proposed; and

(b) has considered any written reasons provided to the Director under subsection (3) .

(3)  The holder of an environmental licence to whom a notice is issued under subsection (2) may provide to the Director, within 14 days after receiving the notice, written reasons as to why the licence ought not be varied as proposed.

(4)  The Director must notify the holder of an environmental licence of –

(a) a decision by the Director to vary the licence under this section; and

(b) the details of the variation and the reason for the variation; and

(c) the rights of the person under Subdivision 9 to appeal to the Appeal Tribunal in relation to a decision made by the Director under this section.

(5)  The Director may not vary under subsection (1) an environmental licence if –

(a) the licence is a licence in relation to an activity to which subsection (6)(a) and (b) , or subsection (7)(a) and (b) , relates; and

(b) the Director is permitted under subsection (6) or (7) to refer to the Board a proposal for such a variation.

(6)  The Director may refer to the Board a proposal, prepared by the Director, to vary an environmental licence in relation to an activity if –

(a) a permit is not required in relation to the activity; and

(b) there is a marine farming licence, or a permit issued under section 12 or 14 of the Living Marine Resources Management Act 1995 , in force in relation to the activity; and

(c) were the variation contained in an application to which section 42O(1) applies, the Director would be required, under section 42O(2) , to refer the application to the Board under section 42O(1) .

(7)  The Director may refer to the Board a proposal, prepared by the Director, to vary an environmental licence in relation to an activity if –

(a) a permit is not required in relation to the activity; and

(b) subsection (6)(b) does not apply in relation to the activity; and

(c) were the variation contained in an application to which section 42O(3) relates, the Director would be required under section 42O to determine that the variation is a major variation.

(8)  The Director must prepare, and refer to the Board, a proposal requiring the Board to conduct an environmental assessment in relation to an area to which an environmental licence relates (whether or not the area comprises all or part of all of the area to which the licence relates) if marine farming, or inland fish farming, of finfish under the licence has not occurred in the area for a period of not less than 10 years.

(9)  If a proposal to vary a licence is referred to the Board under subsection (6), (7) or (8), the Board may only vary under section 42Q(3) the environmental licence to which the proposal relates after assessing the proposal in accordance with section 27AA(5) , if the Board –

(a) has, at least 14 days before varying the licence under section 42Q(3) , issued a notice to the holder of the environmental licence –

(i) specifying the proposed variation; and

(ii) specifying the reasons why the Board proposes to vary the licence; and

(iii) inviting the holder of the environmental licence to provide to the Board, within 14 days after receiving the notice, written reasons as to why the licence ought not be varied as set out in the proposal; and

(b) has considered any written reasons provided to the Board under subsection (10) .

(10)  The holder of an environmental licence to whom a notice is issued under subsection (9) may provide to the Board, within 14 days after receiving the notice, written reasons as to why the licence ought not be varied as proposed.