Amalgamation of production lease areas
33 Amalgamation of production lease areas
The Minister may, on application by the holder of 2 or more production leases for amalgamation of the lease areas into a single production lease area, substitute the original leases with a production lease over the amalgamated lease area.
The following rules apply to the substitution of leases under this regulation:
the holder of each original lease must be the same person;
the substitution must not involve a change in the lessee;
the original leases must be of the same class;
the substitution must not involve a change in the class of lease;
the term of the substituted lease must be for the aggregate of the balance of the terms of the original leases, divided by the number of original leases;
the lease areas of the original leases must be adjoining;
the lease area of the substituted lease must be the aggregate of the lease areas of the original leases;
the substituted lease area must not have more than 6 corners except in exceptional circumstances approved by the Minister;
the conditions of the substituted lease must be the same as the conditions of the original leases, except for conditions designating a lease area or conditions relating to marking out the boundaries of a lease area.
An application for amalgamation of lease areas—
must be made to the Minister in the manner and form required by the
Minister; and
must be accompanied by a plan delineating—
the lease areas of the original leases; and
the licence areas of the corresponding licences relating to the original leases; and
the lease area to be substituted; and
the licence areas of the corresponding licences that are to relate to the substituted lease; and
if the public register includes a notation that a specified person has an interest in the original leases—must be accompanied by evidence that the person consents to the amalgamation; and
must be accompanied by the prescribed fee.
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