Victorian Consolidated Legislation

Petroleum (Submerged Lands) Act 1982 - SECT 38BC

Grant or refusal of lease in relation to application by licensee

38BC. Grant or refusal of lease in relation to application by licensee



(1) If-

   (a)  an application has been made under section 38BB; and

   (b)  the applicant has given any further information as and when required
        by the Minister under section 38BB(3); and

   (c)  the Minister is satisfied that recovery of petroleum from the unused
        area-

   (i)  is not, at the time of the application, commercially viable; and

   (ii) is likely to become commercially viable within the period of 15 years
        after that time- the Minister must, by written notice served on the
        applicant, inform the applicant that the Minister is prepared to grant
        to the applicant a lease in respect of the unused area.

(2) If an application has been made under section38BB and-

   (a)  the applicant has not given further information as and when required
        by the Minister under section 38BB(3); or

   (b)  the Minister is not satisfied as to the matters referred to in
        subsection (1)(c) in relation to the unused area-

the Minister must, by written notice served on the applicant, refuse to grant
a lease to the applicant.

(3) A notice under subsection (1) must contain-

   (a)  a summary of the conditions subject to which the lease is to be
        granted; and

   (b)  a statement to the effect that the application will lapse if the
        applicant does not make a request under subsection (4) in respect of
        the grant of the lease.

(4) An applicant on whom a notice has been served under subsection (1) may,
within one month after the date on which the notice was served, or within such
further period, not exceeding one month, as the Minister, on written
application made to the Minister before the end of the first-mentioned period
of one month, allows, request the Minister in writing to grant the lease to
the applicant.

(5) If an applicant on whom a notice has been served under subsection (1) has
made a request under subsection (4) within the period applicable under
subsection (4), the Minister must grant to the applicant a retention lease in
respect of the unused area.

(6) If an applicant on whom a notice has been served under subsection (1) has
not made a request under subsection (4) within the period applicable under
subsection (4), the application lapses at the end of that period.

(7) On the day on which a lease granted under this section in respect of an
unused area comes into force, the licence in respect of the block or blocks of
which the area consists or in which the area is included ceases to be in force
in respect of the area.