(1) Where a petroleum
pool is identified in a permit area, the permittee may nominate the block in
which the pool is situated, or the blocks (being blocks within the permit
area) to which the pool extends, for declaration as a location.
(2) Where 2 or more
petroleum pools are identified in a permit area, the permittee may, instead of
making a nomination under subsection (1) in relation to each pool, nominate
all of the blocks to which the pools extend, or to which any 2 or more of the
pools extend, for declaration as a single location.
(3) A nomination may
not be made under subsection (2) unless, in the case of each of the pools to
which the nomination relates, at least one of the blocks to which the pool
extends immediately adjoins a block to which the other, or another, of those
pools extends.
(4) A nomination by a
permittee shall be in writing and served on the Minister.
(5) A nomination may
not be made by a permittee unless the permittee or another person has, whether
within or outside the permit area, recovered petroleum from the petroleum pool
to which the nomination relates or, if the nomination relates to more than one
pool, from each of those pools.
(6) Where —
(a) the
Minister is of the opinion that a permittee is entitled to nominate a block or
blocks under subsection (1) or (2); and
(b) the
permittee has not done so,
the Minister may
require the permittee to exercise the permittee’s right to nominate the
block or blocks within 3 months after the date of the making of the
requirement.
(7) A requirement by
the Minister under subsection (6) shall be by written notice served on the
permittee.
(8) On written request
by a permittee within the period fixed by subsection (6), the Minister may
extend the time for compliance with a requirement under that subsection by not
more than 3 months.
(9) If a permittee
fails to comply with a requirement under subsection (6), the Minister may, by
written notice served on the permittee, nominate the block or blocks for
declaration as a location.
[Section 36 inserted: No. 12 of 1990 s. 172.]