OFFSHORE MINERALS ACT 1994 - SECT 104 Mandatory reduction of licence area on renewal of exploration licence

OFFSHORE MINERALS ACT 1994 - SECT 104

  (1)   This section deals with the mandatory reduction of the licence area covered by an exploration licence when the licence is renewed.

  (2)   Subject to paragraph   ( 4)(b), on each surrender day of an exploration licence, the licence holder must surrender:

  (a)   50% of the number of blocks in the licence area; or

  (b)   if 50% of that number is a whole number and a fraction--the next higher whole number.

  (3)   Subject to paragraph   ( 4)(a), the blocks that remain in the licence area after a surrender under subsection   ( 2) must form a discrete area.

  (4)   Subject to subsection   ( 5), the Designated Authority may:

  (a)   give permission for the surrender of blocks in a licence area if the licence area remaining after the proposed surrender would consist of not more than 3 discrete areas; or

  (b)   give permission for a licence area to be reduced by less than 50% if the Designated Authority considers that there are special circumstances present in relation to the renewal application.

  (5)   The Designated Authority may give permission under subsection   ( 4) only with the approval of the Joint Authority.

  (6)   Subsection   ( 5) does not apply to a block in an external territory offshore area.

Note:   The responsible Commonwealth Minister is both the Designated Authority (see subsection   29(3)) and the Joint Authority (see subsection   32(3)) for an external territory offshore area.