Victorian Consolidated Legislation

Petroleum (Submerged Lands) Act 1982 - SECT 38E

Notice of intention to cancel lease

38E. Notice of intention to cancel lease



(1) Where-



   (a)  a lessee has been given a notice of the kind referred to in section
        38H(3) during the term of the lease and has carried out, and has
        informed the Minister of the results of, the re-evaluation required by
        the notice;

   (b)  the lessee has not made an application for the renewal of the lease;
        and



   (c)  after consideration of the results of the re-evaluation referred to in
        paragraph (a) and such other matters as the Minister thinks fit, the
        Minister is of the opinion that recovery of petroleum from the lease
        area is commercially viable-

the Minister may serve on the lessee and on such other persons as the Minister
thinks appropriate an instrument in writing-

   (d)  informing the lessee or the other person that the Minister has formed
        that opinion and that the Minister intends to cancel the lease; and

   (e)  stating that the lessee or the other person may serve an instrument in
        writing on the Minister within the period specified in the
        first-mentioned instrument, not being a period ending earlier than one
        month after the date of service of the first-mentioned instrument,
        setting out any matters that the lessee or the other person, as the
        case may be, wishes to be considered.

(2) Where-

   (a)  an instrument under subsection (1) is served on a lessee; and

   (b)  the lessee does not, within the period referred to in subsection
        (1)(e), serve on the Minister an instrument setting out matters that
        the lessee wishes to be considered or the Minister, after
        consideration of matters set out in an instrument served on the
        Minister by the lessee within that period, determines that the lease
        should be cancelled-

the Minister shall, by instrument in writing served on the lessee, cancel the
lease.

(3) The cancellation of a lease under subsection (2) has effect-

   (a)  in a case to which paragraph (b) does not apply-at the end of the
        period of 12 months commencing on the date of service of the
        instrument of cancellation; or

   (b)  in a case where the lessee makes an application for a licence in
        respect of one or more of the blocks comprised in the lease within the
        period referred to in paragraph (a)-when the Minister grants, or
        refuses to grant, the licence or when the application lapses,
        whichever first happens.

(4) Where a lease is cancelled under subsection (2), the lease shall be deemed
to continue in force in all respects until the cancellation has effect in
accordance with subsection (3).