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The Petroleum Licensing (Exploration and Production) (Seaward and Landward Areas) Regulations 2004

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Option to continue Licence into a Second TermU.K.

4.—(1) This clause 4 shall apply subject to the requirements of clause 9.

(2) At any time not later than one month before the expiry of the Initial Term the Licensee may, subject to payment of those sums hereinafter provided for and to performance of the terms and conditions herein contained including, without limitation, those conditions set forth in paragraph 3 of this clause, give notice in writing to the Minister in the manner hereinafter provided that he desires this licence to continue in force in relation to part of the Licensed Area (hereinafter called “the First Continuing Part”).

(3) Where the Licensee gives notice to the Minister in accordance with paragraph (2) of this clause such notice must indicate that he will determine this licence in relation to such part of the Licensed Area as shall be described by the Licensee in the notice (hereinafter called “the First Surrendered Part”) in accordance with the requirements of paragraph (4) of this clause.

(4) Subject to paragraph (5) of this clause, the First Surrendered Part must consist in an area which, when taken together with any one or more areas previously surrendered in accordance with clause 8 hereof, constitutes no less than three-quarters of the Initial Licensed Area.

(5) The Licensee shall not be obliged to surrender so much of the Licensed Area that following such surrender the Licensed Area comprises less than thirty Sections.

(6) Any notice served in accordance with paragraph (2) of this clause shall specify a date not later than expiry of the Initial Term on which the First Surrendered Part is to be surrendered.

(7) This licence shall upon the option conferred by this clause being duly exercised but subject to the provisions of clause 3 of this licence continue in respect of the First Continuing Part for the Second Term.

Commencement Information

I1Sch. 2 clause 4 in force at 5.3.2004, see reg. 1

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