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s 38

Duties of holder permit to explore

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Part IVPermits, Licenses, and Leases
Division 1Permits to Explore

38 Duties of holder permit to explore

(1)

The holder of a permit to explore shall, subject to this Act and the regulations —

(a)

within 3 months from the date of the issue of such permit, employ and arrange for a geologist to commence a reconnaissance, aerial, geological or geophysical survey within the oil province in respect whereof the permit is issued; and

(b)

furnish to the Minister within 30 days after the end of each quarterly a written report in the prescribed form of operations conducted during each quarter ending the last day of March, June, September and December of each year and, within a reasonable time after the end of each quarter, geological maps of the portion of the area of land which has been surveyed as aforesaid; and

(c)

carry out survey operations within the area of land specified in the permit to explore with due diligence and to the satisfaction of the Minister during the currency of such permit; and

(d)

keep an adequate record of all operations conducted, collect geological specimens of outcrops, fossils, rocks, materials encountered in drilling, take all reasonable precautions to ensure that all such materials and records shall be clearly and permanently labelled and stored in such a way as to prevent deterioration or loss thereof, and shall at all reasonable times allow the Minister or any person authorised by the Minister or the Under Secretary for Mines to examine and inspect the same;

(e)

immediately and firstly inform the Minister of the occurrence of any petroleum encountered during the course of any scout drilling on the land in respect of which the permit is issued;

(f)

immediately furnish to the Minister in writing full details of —

(i)

the composition and physical properties of the petroleum encountered during the course of any scout drilling on the land in respect of which drilling on the land in respect of which the permit is issued as determined by standard commercial methods and analyses;

(ii)

the nature and extend of the oil bearing formation so encountered and its geological age.

(2)

The holder of a permit to explore shall not undertake any drilling operations without the consent in writing of the Minister, and such consent shall not provide for other than scout-drilling operations. In the event of scout-drilling operations being approved, the core from the bore, which must consist of 66 per centum of the depth drilled, shall, unless the Minister shall otherwise approve, be preserved intact in the custody of some person and in such manner as may be prescribed for a period of not less than 12 months.

[Section 38 amended: No. 8 of 1940 s. 19; No. 12 of 1951 s. 4; No. 66 of 1954 s. 10.]

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