(1) Where an
application for a primary licence has been made and, before or after the grant
of the primary licence, the applicant makes an application for a secondary
licence, the Minister shall determine a rate at which royalty is to be payable
in respect of petroleum recovered, whether under the primary licence or under
the secondary licence, being a rate that is not less than 11% or more than
12½ % of the royalty value of that petroleum.
(2) The Minister shall
not, under subsection (1), determine the rate at which royalty is to be
payable unless he has given to the applicant an opportunity to confer with him
concerning that rate.
[Section 42 amended: No. 11 of 1994 s. 9.]