The Petroleum (Current Model Clauses) Order 1999

Areas surrendered

7.—(1) Any area to be surrendered by the Licensee pursuant to the last three foregoing clauses in any case where, at the date at which the notice is given by the Licensee to the Minister, the licensed area is a block or has been divided into blocks, shall unless the Minister has otherwise agreed in writing prior to the date at which the notice is given by the Licensee to the Minister—

(a) be bounded by lines which unless they are boundaries of the area originally comprised in the licence run either due north and south or due east and west;

(b) not comprise any part of a block being a part having an area of less than twenty square kilometres.

(2) Any area to be surrendered by the Licensee pursuant to the last three foregoing clauses, in any case where the foregoing paragraph does not apply, shall unless the Minister has otherwise agreed in writing prior to the date at which the notice is given by the Licensee to the Minister be—

(a) not less than twenty square kilometres in extent and such that the area remaining subject to this licence after such surrender will be not less than ten square kilometres in extent;

(b) clearly defined and as far as possible compact;

(c) such that any area remaining subject to this licence after such surrender will be clearly defined and as far as possible compact; and

(d) such that the greatest length of any area remaining subject to this licence after such surrender will not exceed three times the average width thereof.

(3) Upon the date upon which any determination of the licence or any surrender of part of the licensed area in manner provided by the last three foregoing clauses is to take effect the rights granted by the licence shall cease in respect of the licensed area or of the part so surrendered as the case may be but without prejudice to any obligation or liability imposed upon the Licensee or incurred by him under the terms of the licence prior to that date.