Petroleum Act 1936

When the holder of a license to prospect discovers petroleum in the area of land in respect of which the license is granted, if the license is granted after the 1^st day of January 1955, he is entitled to select within 6 months of the discovery or within such extended time as the Minister may allow, so much of that area not exceeding one-half as he requires to hold under petroleum lease.

The remaining one-half of the area of the land together with any other part of the area which the holder does not require by force of this Act is reserved to Her Majesty to be disposed on in accordance with the provisions of this at and thereupon the license to prospect granted in respect of the area so reserved shall so far as it relates to the area so reserved forthwith lapse and be of no force and effect.

(a) Where, under the provisions of section 78B of this Act, the Minister disposes of any land which is reserved pursuant to the provisions of subsection (2) of this section, it shall be disposed of upon such terms and conditions including the title by which the land may be held, as the Governor may determine.

The Minister shall notify in writing the person who held the license to prospect in respect of the land at the time it was so reserved, of the terms and conditions upon which the land is to be disposed of and that person has the firs right to acquire the land or any part of it upon those terms and conditions.

If the person decides to exercise the right granted to him under the provisions of paragraph (b) of this subsection, he shall notify the Minister in writing of his decision within 90 days of the receipt by him of the notice referred to in that paragraph.