(1)  Where a permittee, lessee, licensee, or pipeline licensee –

(a) has not complied with a condition to which the permit, lease, licence, or pipeline licence is subject; or

(b) has not complied with a direction given to him under this Part by the Minister; or

(c) has not complied with a provision of this Part or of the regulations; or

(d) has not paid any amount payable by him under this Act, within a period of 3 months after the day on which the amount became payable –

the Minister may, on that ground, by instrument in writing served on the permittee, lessee, licensee, or pipeline licensee, as the case may be –

(e) in the case of a permit or licence – cancel the permit or licence as to all or some of the blocks in respect of which it is in force; or

(ea) in the case of a lease – cancel the lease as to all of the blocks in respect of which it is in force; or

(f) in the case of a pipeline licence – cancel the pipeline licence as to the whole or a part of the pipeline in respect of which it is in force.

(2)  The Minister shall not, under subsection (1) , cancel a permit, licence, or pipeline licence as to all or some of the blocks, or as to the whole or a part of the pipeline, in respect of which it is in force, or cancel a lease as to all of the blocks in respect of which it is in force, on a ground referred to in that subsection unless –

(a) he has, by instrument in writing served on the permittee, lessee, licensee, or pipeline licensee, as the case may be, given not less than 1 month's notice of his intention to cancel the permit, lease, licence, or pipeline licence on that ground; and

(b) he has served a copy of the instrument on such other persons, if any, as he thinks fit; and

(c) he has, in the instrument, specified a date on or before which the permittee, lessee, licensee, or pipeline licensee or a person on whom a copy of the instrument is served may, by instrument in writing served on the Minister, submit any matters that he wishes the Minister to consider; and

(d) he has taken into account –

(i) any action taken by the permittee, lessee, licensee, or pipeline licensee, as the case may be, to remove that ground or to prevent the recurrence of similar grounds; and

(ii) any matters so submitted to him on or before the specified date by the permittee, lessee, licensee, or pipeline licensee or by a person on whom a copy of the first-mentioned instrument has been served.