(1)  Where a person makes an application in accordance with section 63 , the Minister –

(a) shall, if the application is –

(i) in respect of the construction in the adjacent area of a pipeline for the conveyance of petroleum recovered in a licence area in respect of which the applicant is the licensee and the licensee has complied with the conditions to which the licence is subject and with the provisions of this Part and of the regulations; or

(ii) by a pipeline operator under the Commonwealth Act or a corresponding law; or

(b) may, if the application is by any other person and has not been rejected under section 63 (3) –

inform the applicant, by instrument in writing served on him, that the Minister is prepared to grant a pipeline licence to him.

(2)  Where a licensee who has not complied with the conditions to which the licence is subject and with the provisions of this Part and of the regulations makes an application in accordance with section 63 for a pipeline licence in respect of the construction of a pipeline for the conveyance of petroleum recovered in the licence area, the Minister, if he is satisfied that, although the licensee has not so complied, special circumstances exist that justify the granting of a pipeline licence, may inform the licensee, by instrument in writing served on the licensee, that he is prepared to grant a pipeline licence to him.

(3)  If a licensee who has not complied with the conditions to which the licence is subject and with the provisions of this Part and of the regulations makes an application in accordance with section 63 for a pipeline licence, and if the Minister is not satisfied that special circumstances exist that justify the granting of a pipeline licence, the Minister shall, subject to subsection (4) , by instrument in writing served on the licensee, refuse to grant a pipeline licence.

(4)  The Minister shall not, under subsection (3) , refuse to grant a pipeline licence to a licensee unless –

(a) he has, by instrument in writing served on the licensee, given not less than one month's notice of his intention to refuse to grant the pipeline licence; 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 –

(i) given particulars of the reasons for the intention; and

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

(5)  Where a person, other than the licensee or the pipeline operator under the Commonwealth Act or a corresponding law, makes an application in accordance with section 63 for a pipeline licence in respect of the construction of a pipeline for the conveyance of petroleum recovered in a licence area or, as the case may be, a licence area of a production licence under the Commonwealth Act or a corresponding law, the Minister may, by instrument in writing served on the applicant, refuse to grant a pipeline licence.

(6)  Where the Minister is required, or proposes, to serve on a person an instrument under subsection (1) or (2) , he shall, by the instrument, inform that person that he will be required to lodge a security for compliance with the conditions to which the pipeline licence, if granted, will from time to time be subject and with the provisions of this Part and of the regulations.

(7)  An instrument under subsection (1) or (2) –

(a) shall specify the route to be followed by the pipeline; and

(b) shall contain a summary of the conditions subject to which the pipeline licence is to be granted; and

(c) shall contain a statement to the effect that the application will lapse if the applicant does not make a request under subsection (9) and lodge with the Minister the security referred to in the instrument.

(8)  The route to be specified in an instrument under subsection (1) or (2) shall be –

(a) the route shown in the plan accompanying the application; or

(b) if the Minister is of the opinion that, for any reason, that route is not appropriate – a route that, in the opinion of the Minister, is appropriate.

(9)  A person on whom there has been served an instrument under subsection (1) or (2) may, within a period of 3 months after the date of service of the instrument on him, or within such further period, not exceeding 3 months, as the Minister, on application in writing served on him before the expiration of the first-mentioned period of 3 months, allows –

(a) by instrument in writing served on the Minister, request the Minister to grant to him the pipeline licence; and

(b) lodge with the Minister the security referred to in the instrument so served on him.

(10)  Where a person on whom there has been served an instrument under subsection (1) or (2) –

(a) has made a request under subsection (9) ; and

(b) has lodged with the Minister the security referred to in the instrument –

within the period applicable under subsection (9) , the Minister shall grant to that person a licence to construct and operate a pipeline in respect of the pipeline specified in the instrument.

(11)  Where a person on whom there has been served an instrument under subsection (1) or (2) –

(a) has not made a request under subsection (9) ; or

(b) has not lodged with the Minister the security referred to in the instrument –

within the period applicable under subsection (9) , the application lapses upon the expiration of that period.

(12)  Where a pipeline licence is not granted on an application, an amount equal to nine-tenths of the fee paid in accordance with section 63 (1) (f) shall be refunded to the applicant.

(13)  In this section –

pipeline operator under the Commonwealth Act or a corresponding law means a person who is entitled under the Commonwealth Act or a corresponding law to carry on operations for the recovery of petroleum in an area outside the adjacent area and who the Minister is satisfied is or will be entitled to construct a pipeline from the first-mentioned area to the boundary of the adjacent area.