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3.—(1) These Regulations shall have effect in relation to applications for, and the model clauses to be prescribed for inclusion (unless the Secretary of State thinks fit to modify or exclude them in any particular case) in, licences:–
(a)to search and bore for, and get, petroleum in strata in the islands on the seaward side of lines drawn in accordance with the provisions of Schedule 1 to these Regulations, in the sea bed and subsoil beneath waters which lie on the seaward side of the said lines and, where such lines are not the outward limit of territorial waters adjacent to Great Britain, within that limit, and in the sea bed and subsoil within any area designated under section 1(7) of the Continental Shelf Act 1964(1) (in these Regulations referred to as “seaward areas”); and
(b)to search for petroleum in strata in the areas of Great Britain and beneath the waters adjacent thereto which lie in the landward areas between the said lines and the low water line (in these Regulations referred to as “landward areas below the low-water line”).
(2) The provisions of the Regulations specified in Schedule 2 hereto shall cease to have effect in relation to:–
(a)applications made after the date of coming into force of these Regulations for production licences in respect of seaward areas and exploration licences in respect of seaward areas and landward areas below the low water line;
(b)model clauses to be incorporated in any such licence to be granted after the date of coming into force of these Regulations in pursuance of an application lodged after that date.
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