Adjustment of payments of royalty
148B Adjustment of payments of royalty
This section applies—
where section 148A(2) has operated in relation to petroleum recovered during a royalty period and a value of the petroleum different to the provisional value is subsequently agreed or determined under section 146; or
where an error has been made in the calculation of royalty due or in the application of a procedure by the application of which the value of the petroleum has been ascertained.
Where this section applies—
if the determined royalty is greater than the provisional royalty, the difference is payable within 28 days; and
if the determined royalty is less than the provisional royalty, the difference is deducted from any amount subsequently payable by the lessee, permittee or licensee concerned.
In this section—
determined royalty means—
where subsection (1)(a) applies, the amount of royalty payable in relation to the petroleum on the basis of the value ascertained under section 146; and
where subsection (1)(b) applies, the amount of royalty payable in relation to the petroleum;
provisional royalty means—
where subsection (1)(a) applies, the amount of royalty payable in relation to the petroleum on the basis of the provisional value; and
where subsection (1)(b) applies, the amount of royalty demanded in relation to the petroleum as a result of the erroneous calculation.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.