If:
(a) a person applies under section 197 or 198 for a licence over a group of blocks; and
(b) because of section 18, 197 or 198:
(i) a mining licence cannot be granted over one or more of the blocks in the group; or
(ii) the Joint Authority cannot grant the licence over one or more of the blocks in the group;
the Designated Authority and the Joint Authority may still deal with the application to the extent to which the application covers blocks:
(c) for which a mining licence can be granted; or
(d) for which the Joint Authority does have power to grant the licence applied for.
Note 1: A mining licence cannot be granted over a block that is not vacant or over a reserved block (see section 18).
Note 2: The Joint Authority for a State may grant a licence only over blocks in that State's Commonwealth - State offshore area.