PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 209
Obligation to negotiate with proposed users
PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 209
Obligation to negotiate with proposed users
209 Obligation to negotiate with proposed users
(1) A person (a
"proposed user" ) may give the lease holder or existing user a notice
requiring the holder or existing user to, within a stated reasonable time,
start negotiations to attempt to reach a storage agreement for available
storage capacity for the reservoir.
(2) Subject to section 210, the holder
or existing user must negotiate in good faith with the proposed user to
attempt to reach a fair and reasonable storage agreement with the proposed
user.
Penalty—
Maximum penalty for subsection (2) —500 penalty units.
