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SCHEDULE 3MODEL CLAUSES FOR PRODUCTION LICENCES RELATING TO FRONTIER AREAS—INCLUDING BREAK CLAUSE

Areas surrendered

10.—(1) Any area surrendered by the Licensee pursuant to clauses 4, 6 or 9 of this licence and any area accordingly retained by him shall, unless the Minister has otherwise agreed in writing before the date on which the appropriate notice is given by the Licensee to the Minister—

(a)be bounded by minute lines of latitude extending not less than two minutes of longitude and minute lines of longitude extending not less than two minutes of latitude;

(b)subject in the case of any area surrendered by the Licensee to clauses 4(5) and 6(5), consist of not less than thirty Sections; and

(c)subject always to clause 10(2), have boundaries which, whether they run north and south or east and west, either coincide with the corresponding boundaries of the Block or are not less than two Sections distant from those boundaries.

(2) The surrender by the Licensee of any area pursuant to clauses 4, 6 or 9 of this licence shall not, unless the Minister has otherwise agreed in writing before the date on which the appropriate notice is given by the Licensee to the Minister, result in the creation of a Fragmented Licensed Area.

(3) Upon the date on which any determination of this licence or any surrender of part of the Licensed Area in the manner provided for by any clause of this licence is to take effect the rights granted by this 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 this licence prior to that date.