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Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002)

Chapter 6 : Petroleum Exploration and Production

84. Granting and duration of production right

 

(1) The Minister must grant a production right if—
(a) the applicant has access to financial resources and has the technical ability to conduct the proposed production operation optimally;
(b) the estimated expenditure is compatible with the intended production operation and duration of the production work programme;
(c) the production will not result in unacceptable pollution, ecological degradation or damage to the environment;
(d) the applicant has the ability to comply with the relevant provisions of the Mine Health and Safety Act, 1996 (Act No.29 of 1996);
(e) the applicant is not in contravention of any relevant provision of this Act;
(f) the applicant has complied with the terms and conditions of the exploration right, if applicable;
(g) the applicant has provided financially and otherwise for a prescribed social and labour plan;
(h) the petroleum can be produced optimally in accordance with the production work programme;
(i) the granting of such right will further the object referred to in section 2(d) and (f) and in accordance with the Chapter contemplated in section 100 and the prescribed social and labour plan.

[Section 84(1)(i) substituted by section 62(a) of the Mineral and Petroleum Resources Development Amendment Act, 2008]

 

(2) The Minister must, within 60 days of receipt of the application from the designated agency, refuse to grant a production right if the application does not meet all the requirements referred to in subsection (1).

[Section 84(2) substituted by section 62(b) of the Mineral and Petroleum Resources Development Amendment Act, 2008]

 

(3) If the Minister refuses to grant a production right, the Minister must, within 30 days of the decision, notify the applicant in writing of such decision and the reasons therefor.

[Section 84(3) substituted by section 62(c) of the Mineral and Petroleum Resources Development Amendment Act, 2008]

 

(4) A production right is subject to prescribed terms and conditions and is valid for the period specified in the right, which periods, each of which may not exceed 30 years.

 

(5) A production right granted in terms of subsection (1) becomes effective on the effective date.

[Section 84(5) substituted by section 62(d) of the Mineral and Petroleum Resources Development Amendment Act, 2008]