Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section deals with the mandatory reduction of the licence area covered by an exploration licence when the licence is renewed.
(2) Subject to paragraph (4)(b), on each surrender day of an exploration licence, the licence holder must surrender:
(a) 50% of the number of blocks in the licence area; or
(b) if 50% of that number is a whole number and a fraction--the next higher whole number.
(3) Subject to paragraph (4)(a), the blocks that remain in the licence area after a surrender under subsection (2) must form a discrete area.
(4) Subject to subsection (5), the Designated Authority may:
(a) give permission for the surrender of blocks in a licence area if the licence area remaining after the proposed surrender would consist of not more than 3 discrete areas; or
(b) give permission for a licence area to be reduced by less than 50% if the Designated Authority considers that there are special circumstances present in relation to the renewal application.
(5) The Designated Authority may give permission under subsection (4) only with the approval of the Joint Authority.
(6) Subsection (5) does not apply to a block in an external territory offshore area.
Note: The responsible Commonwealth Minister is both the Designated Authority (see subsection 29(3)) and the Joint Authority (see subsection 32(3)) for an external territory offshore area.