PETROLEUM (ONSHORE) ACT 1991 - SECT 86
Reduction of royalty in certain cases
PETROLEUM (ONSHORE) ACT 1991 - SECT 86
Reduction of royalty in certain cases
86 Reduction of royalty in certain cases
(1) If--
(a) the Minister is
satisfied that the rate of recovery of petroleum from a well has become so
reduced that, having regard to the rate or rates of royalty applicable under
this Act, further recovery of petroleum from that well would be uneconomic, or
(b) petroleum is being recovered by the holder of a title as a consequence of
a requirement made under this Act, or
(c) other circumstances exist which, in
the opinion of the Minister, justify a determination under this section,
the
Minister may, by instrument in writing, determine that the royalty in respect
of all or any of the petroleum recovered from that well on or after a date
specified in the determination is to be at such rate (being a rate lower than
the rate that would be otherwise applicable) as the Minister specifies.
(2)
The Minister may, by instrument in writing, revoke or vary a determination
under this section and the revocation or variation applies to petroleum
recovered on or after a date specified in the instrument.
(3) Determinations
of the Minister under this section have effect despite the regulations.
(4)
The Chief Commissioner is to remit the interest or penalty tax on any royalty
that ceases to be payable because of a decision of the Minister under this
section.
