(1) Each petroleum lease must state its
term and area.
(2) The term must—
(a) be for at least the plan period for
the initial development plan for the lease; and
(b) end no later than 30
years after the lease takes effect.
(3) The lease may also state—
(a)
conditions or other provisions of the lease, other than conditions or
provisions that are—
(i) inconsistent with the mandatory conditions for
petroleum leases; or
(ii) the same as, or substantially the same as, or
inconsistent with, any relevant environmental condition for the lease; and
(b) a day for the lease to take effect; and
(c) a day by which petroleum
production under the lease is to start.
(3A) The conditions of the lease may
include an Australian market supply condition applying to all or part of the
area of the lease.
(4) However, the provisions of the lease may exclude or
restrict the carrying out of an authorised activity for the lease.
(5) The
day of effect must not be before the day the lease is granted.
(6) If no day
of effect is decided, the lease takes effect on the day it is granted.
(7)
The production commencement day may be more than 2 years after the day of
effect only if the Minister is satisfied the holder has entered into a
relevant arrangement.
(8) The matters that must be considered in deciding the
provisions of the lease include the development plan criteria and capability
criteria.
