Document ID: chunk:federal_register_of_legislation:C2024C00828:section:136:p1
Version: federal_register_of_legislation:C2024C00828
Segment Type: section
Provision Reference: s 136 (pt 1/2)
Character Range: 347616–350396

136  Conditions of petroleum retention leases
 (1) The Joint Authority may grant a petroleum retention lease subject to whatever conditions the Joint Authority thinks appropriate.
 (2) The conditions (if any) must be specified in the lease.
 (2A) Subsection (1) does not apply to a petroleum retention lease granted under section 152A.

Lease to which Royalty Act applies
 (3) A petroleum retention lease to which the Royalty Act applies is subject to a condition that the lessee will comply with the provisions of the Royalty Act.
Note: The Royalty Act applies to a small number of North West Shelf titles.
 (4) Despite subsection (2), the condition mentioned in subsection (3) does not need to be specified in the lease.

Re‑evaluation of commercial viability
 (5) A petroleum retention lease is subject to a condition that if the Titles Administrator gives the lessee a written notice requesting the lessee to:
 (a) re‑evaluate the commercial viability of petroleum production in the lease area (otherwise than by the drilling of wells); and
 (b) inform the Titles Administrator in writing of the results of the re‑evaluation;
the lessee must comply with the request within:
 (c) the period of 90 days after the notice is given; or
 (d) such longer period as the Titles Administrator allows.
 (6) The Titles Administrator may allow a longer period under paragraph (5)(d) only on written application made by the lessee within the period of 90 days mentioned in paragraph (5)(c).
 (7) If a petroleum retention lessee has complied with a subsection (5) request during the term of the lease, the Titles Administrator must not give the lessee a further subsection (5) request during that term.
 (8) Despite subsection (2), the condition mentioned in subsection (5) does not need to be specified in the lease.

Work to be carried out by lessee
 (9) Any or all of the following conditions may be specified in a petroleum retention lease:
 (a) conditions requiring the lessee to carry out work in, or in relation to, the lease area;
 (b) conditions about the amounts that the lessee must spend in carrying out such work;
 (c) conditions requiring the lessee to comply with directions that:
 (i) relate to the matters covered by paragraphs (a) and (b);
 (ii) are given in accordance with the lease.
 (10) Subsection (9) does not limit subsection (1), (13) or (20).

Declared petroleum retention leases—approval of key petroleum operations
 (11) A declared petroleum retention lease is subject to the condition that the lessee will not carry on key petroleum operations under the lease unless the responsible Commonwealth Minister has approved the operations under section 137.
 (12) Despite subsection (2), the condition mentioned in subsection (11) does not need to be specified in the