Western Australian Current Acts Western Australian Current Acts (1) For the purposes
of section 91M(1), an exploration requirement is a requirement to do either or
both of the following after the farm-in transaction is made —
(a)
expend, on exploration carried out by the farmee after the farm-in transaction
is made, an amount that is specified in, or determined in accordance with, the
farm-in transaction;
(b)
carry out exploration as specified in, or determined in accordance with, the
farm-in transaction.
(2) In subsection
(1)(a) and (b), references to exploration are to —
(a)
subject to paragraph (b) and subsection (4), exploration that consists, and
only consists, of the following —
(i)
if only section 91M(1)(a)(i) applies — exploration
of each relevant mining tenement;
(ii)
if only section 91M(1)(a)(ii) applies — exploration
of each relevant derivative mining right;
(iii)
if both section 91M(1)(a)(i) and (ii) apply —
exploration of each relevant mining tenement and each relevant derivative
mining right;
and
(b) in
relation to exploration of a relevant derivative mining right, exploration
that consists only of either or both of the following —
(i)
mining that is authorised by the relevant derivative
mining right;
(ii)
activities that are solely incidental to mining that is
so authorised.
(3) Subsection (4)
—
(a)
applies to any relevant mining tenement that has not been granted when the
farm-in transaction is made; but
(b)
cannot be relied upon in a way that would mean, in effect, that —
(i)
no amount is required to be expended as referred to in
subsection (1)(a); and
(ii)
no exploration is required to be carried out as referred
to in subsection (1)(b).
(4) Despite subsection
(2)(a)(i) and (iii), the exploration on which an amount is required to be
expended as referred to in subsection (1)(a), or that is required to be
carried out as referred to in subsection (1)(b), need not include any
exploration of the relevant mining tenement.
(5) In relation to a
concessional farm-in transaction, the exploration amount is, as the case
requires —
(a) the
amount required to be expended as referred to in subsection (1)(a); or
(b) the
amount expended by the farmee after the concessional farm-in transaction is
made on the exploration required to be carried out as referred to in
subsection (1)(b); or
(c) the
amount required to be expended as referred to in subsection (1)(a) and any
additional amount expended by the farmee after the concessional farm-in
transaction is made on the exploration required to be carried out as referred
to in subsection (1)(b).
(6) The Commissioner
may, in relation to an agreement, allow expenditure on administrative costs
that would not otherwise be regarded as expenditure on exploration for the
purposes of this section to be so regarded, subject to any limits or other
conditions imposed by the Commissioner.
[Section 91N inserted: No. 37 of 2022 s. 8.]
[Heading inserted: No. 37 of 2022 s. 8.]