The Petroleum (Current Model Clauses) Order 1999

Security

(1) In this clause—

(a) “deposit” means the sum deposited with the Minister of Power by the Licensee on the execution of this licence, and

(b) “banker’s guarantee” means the banker’s guarantee furnished to that Minister by the Licensee on the execution of this licence as an alternative to a deposit,

in accordance with this licence as it had effect when granted and as security for the observance and performance by the Licensee of the terms and conditions of this licence and for the purposes hereinafter mentioned.

(2) If the Licensee shall, within 28 days of the receipt from the Minister of an account of expenditure incurred in respect of any works executed by him under the provisions of this licence, fail to discharge any such account the Minister may recoup himself for such expenditure from and to the extent of any such deposit or, as the case may be, the bankers guarantee.

(3) Subject to the provisions of sub-clause (2) hereof upon the determination of this licence any such deposit shall be returned to the Licensee or any such bankers guarantee shall be released.