SCHEDULE 1MODEL CLAUSES FOR EXPLORATION LICENCES
Avoidance of harmful methods of working9
1
The Licensee shall maintain all apparatus and appliances and all Wells which have not been abandoned and plugged as provided by clause 7 of this licence in good repair and condition and shall execute all operations in or in connection with the Exploration Area in a proper and workmanlike manner in accordance with methods and practice of exploration customarily used in good oilfield practice and without prejudice to the generality of the foregoing provision the Licensee shall take all steps practicable in order—
a
to prevent the escape or waste of Petroleum discovered in the Exploration Area;
b
to conserve the Exploration Area for productive operations;
c
to prevent damage to Petroleum-bearing strata;
d
to prevent the entrance of water through Wells to Petroleum-bearing strata; and
e
to prevent the escape of Petroleum into any waters in or in the vicinity of the Exploration Area.
2
The Licensee shall comply with any instructions from time to time given by the Minister in writing relating to any of the matters set out in the foregoing paragraph. If the Licensee objects to any such instruction on the ground that it is unreasonable he may, within fourteen days from the date upon which the same was given, refer the matter to arbitration in manner provided by clause 21 of this licence.
3
The Licensee shall give notice to the Minister of any event causing escape or waste of Petroleum, damage to Petroleum-bearing strata or entrance of water through Wells to Petroleum-bearing strata forthwith after the occurrence of that event and shall, forthwith after the occurrence of any event causing escape of Petroleum into the sea, give notice of the event to the Chief Inspector of Her Majesty’s Coastguard.