Nomination of block for purposes of declaring location
36 Nomination of block for purposes of declaring location
Where a permit is in force in respect of a discovery block (not being a block that is, or is included in, a location) the permittee—
may; or
shall, if required to do so by the Minister by instrument in writing served on the permittee;
by instrument in writing served on the Minister nominate a block in respect of which the permit is in force for the purpose of the making of a declaration under section 37.
Where a permittee who has been required, by instrument in writing served on the permittee under subsection (1), to nominate a block does not, within a period of 3 months after the date of service of the instrument on the permittee, or within such further period as the Minister, on application in writing served on the Minister before the expiration of that period of 3 months, allows, nominate the block, the Minister may, by instrument in writing served on the permittee, nominate the block.
Where a permittee or the Minister nominates a block under this section, the permittee or the Minister shall specify in the instrument of nomination a discovery block to form part of the location to be declared under section 37, but this subsection does not prevent other discovery blocks in the permit area forming part of the location.
A block shall not be nominated under subsection (1) or (2)—
if it is, or is included in, a location; or
if it is such that, if the block were so nominated and the declaration under section 37 were made, the discovery block specified in the instrument of nomination would not form part of the location.
Where a discovery block in a permit area immediately adjoins another discovery block and that other discovery block—
is a block—
in respect of which the permit is in force; and
that is, or is included in, a location; and
that was specified under subsection (3) in relation to the declaration of that location; or
is a block—
that was specified under subsection (3) in relation to the declaration of a location; and
in respect of which the permit has ceased to be in force by reason of the operation of section 44(5);
the permittee shall not, without the consent of the Minister, specify the first mentioned discovery block under subsection (3).
The Minister may, for reasons that the Minister thinks sufficient, refuse to give consent under subsection (5).
In this section—
discovery block means a block in which petroleum has been discovered.
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