Northern Territory Consolidated Acts Northern Territory Consolidated Acts(1) Subject to subsection (6), where the Minister is satisfied that a commercially exploitable accumulation of petroleum may occur in an exploration permit area, the Minister may, by notice served on the permittee, require the permittee to show cause why the permittee should not apply for a production licence in relation to the blocks where the accumulation may occur and specify a date, being not earlier than 6 months after the date of the notice, before which the permittee should show cause.
(2) Subject to subsection (5), where a permittee has been served with a notice under subsection (1) and he fails to show cause to the satisfaction of the Minister, before the date specified in the notice, the Minister may, by notice served on the permittee, direct him to apply for a production licence and specify a date, being not earlier than 6 months after the date of the notice under this subsection, before which he shall apply for the production licence.
(3) Subject to subsection (5), where, under subsection (2), a permittee has been directed to apply for a production licence before the date specified in the notice and he has failed to so apply, the Minister may, by notice served on the permittee, cancel the exploration permit in relation to the blocks specified in the notice under subsection (1).
(4) The Minister may, by notice served on the permittee, vary the date in a notice under subsection (1) or (2) so as to allow a longer period for the permittee to show cause or apply for the production licence as required by the notice under subsection (1) or (2), as the case may be.
(5) Where a notice under subsection (1) or (2) has been served on a permittee and he has made an application to the Minister for a retention licence in relation to the blocks to which such a notice relates, the Minister may not exercise his powers under this section until the application for a retention licence has been determined.
(6) The Minister may not exercise his powers under this section:
(a) during the first term of the exploration permit; or
(b) if the blocks where the commercially exploitable accumulation of petroleum may occur are, in whole or part, Aboriginal land and no agreement has been reached under the Land Rights Act either between the permittee and the Land Council or as otherwise permitted under that Act, in relation to the production of petroleum in that area.