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

Chapter 6 : Petroleum Exploration and Production

85. Application for renewal of production right

 

(1) Any holder of a production right who wishes to apply to the Minister for the renewal of a production right must lodge the application—
(a) at the office of the designated agency;
(b) in the prescribed manner, and
(c) together with the prescribed non-refundable application fee.

 

(2) An application for renewal of a production right must—
(a) state the reasons period for which the renewal is required;
(b) be accompanied by a detailed report reflecting the production results, the interpretation thereof and the production expenditure incurred;
(c) be accompanied by a report reflecting the extent of compliance with the requirements of the approved environmental management programme, the rehabilitation to be completed and the estimated cost thereof; and
(d) include a detailed production work programme for the renewal period.

 

(3) The Minister must grant the renewal of a production right if the application complies with subsections (1) and (2) and the holder of the production right has complied with the—
(a) terms and conditions of the production right is not in contravention of any relevant provision of this Act or any other law;
(b) production work programme;
(c) the requirements of the prescribed social and labour plan; and
(d) requirements of the approved environmental management programme.

 

(4) A production right may be renewed for further periods each of which shall not exceed 30 years at a time.

 

(5) A production right in respect of which an application for renewal has been lodged, shall despite its expiry date, remain in force until such time as such application has been granted or refused.

[Section 85(5) substituted by section 63 of the Mineral and Petroleum Resources Development Amendment Act, 2008]