(1) This section applies if the application covers blocks in a Commonwealth - State offshore area.
(2) If the applicant does what is required by sections 271 to 274, the Designated Authority must refer the application to the Joint Authority.
(3) If the applicant does not do what is required by sections 271 to 274, the Designated Authority:
(a) must not refer the application to the Joint Authority; and
(b) must give the applicant written notice that the application has been refused.
(4) The application lapses if a notice is given under subsection (3).