(1)  A permittee, lessee, or licensee shall, subject to this Division, pay to the Minister royalty at the prescribed rate in respect of all petroleum recovered by the permittee, lessee, or licensee in the permit area, lease area, or licence area.

(2)  Subject to subsections (3) to (8) and to section 143 , the prescribed rate in respect of petroleum recovered under a permit, lease, or licence is 10 per cent of the value at the well-head of the petroleum.

(3)  The prescribed rate in respect of petroleum recovered under a secondary licence is the percentage determined by the Minister in accordance with section 41 (1) in respect of petroleum so recovered.

(4)  Where a secondary licence is granted to the holder of a primary licence, the prescribed rate in respect of petroleum recovered under the primary licence is, as from the beginning of the next royalty period after the day from which the secondary licence has effect, the same percentage as is applicable in respect of petroleum recovered under the secondary licence.

(5)  Where –

(a) a licence is granted on an application under section 46 ; and

(b) the instrument served on the applicant under section 48 contains a statement that the applicant will be required to pay, in respect of petroleum recovered under that licence, royalty at the rate specified in that instrument –

the prescribed rate in respect of petroleum recovered under that licence is the percentage specified in that statement.

(6)  Where a licence is granted on an application under subsection (2) of section 50 , the prescribed rate in respect of petroleum recovered under that licence is the same percentage as was applicable in respect of petroleum recovered under the original licence as defined by subsection (1) of that section.

(7)  The prescribed rate in respect of petroleum recovered in the licence area referred to in a licence granted by way of renewal of a licence is the percentage that would be the prescribed rate if the immediately preceding licence has not expired.

(8)  A reference in this section or in a permit, lease, or licence to royalty at the prescribed rate or royalty at the rate that is for the time being the prescribed rate is a reference to royalty at the rate that is or was the prescribed rate applicable in accordance with the provisions of this Act as in force from time to time.