PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 210 Obligation about priority for proposed users

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 210

210 Obligation about priority for proposed users

(1) If—

(a) a petroleum lease holder or existing user has started negotiations mentioned in section 209 (2) (the
"first negotiations" ) with a proposed user; and

(b) after the start of the first negotiations, the lease holder or existing user starts negotiations mentioned in section 209 (2) (the
"second negotiations" ) with another proposed user; and

(c) the first negotiations have not ended;

the lease holder or existing user must, as far as practicable, ensure the first negotiations are not unreasonably affected by the second negotiations.

Penalty—

Maximum penalty—500 penalty units.

(2) Despite subsection (1) , the existing user has priority to negotiate for the storage capacity of the reservoir that will, when the storage agreement by the lease holder (the
"existing agreement" ) ends, be available storage capacity for the lease holder.

(3) However, the priority under subsection (2) —

(a) applies only to the extent the storage capacity sought is no more than the existing user’s entitlement under the existing agreement in the last year before it is to end according to its provisions; and

(b) ceases 2 years before the existing agreement ends.