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PETROLEUM AND GEOTHERMAL ENERGY ACT 2000 - SECT 28

PETROLEUM AND GEOTHERMAL ENERGY ACT 2000 - SECT 28

28—Retention licences

        (1)         There will be 3 categories of retention licence:

            (a)         a "petroleum retention licence";

            (b)         a "geothermal retention licence";

            (c)         a "gas storage retention licence".

        (2)         A retention licence protects the interests of the licensee in a regulated resource of the kind relevant to the category of the licence for a reasonable period in connection with 1 or more of the following purposes:

            (a)         to facilitate—

                  (i)         proper evaluation of the productive potential of a discovery that has been made by the licensee; or

                  (ii)         carrying out the work necessary to bring the discovery to commercial production; or

                  (iii)         without limiting a preceding subparagraph, in the case of a gas storage retention licence—the testing of the natural reservoir for the storage of petroleum or another regulated substance;

            (b)         without limiting paragraph (a), to provide a means by which the licensee may maintain an interest in a regulated resource until production is commercially feasible (subject to limits and conditions under this Act);

            (c)         to facilitate other activities considered appropriate by the Minister.

        (3)         Accordingly, a retention licence authorises the licensee to carry out in the licence area (according to the terms of the licence)—

            (a)         operations to establish the nature and extent of a discovery of regulated resources; and

            (b)         operations to establish the commercial feasibility of production and appropriate production techniques; and

            (c)         other regulated activities specified in the licence.