Petroleum and Other Minerals Development Act, 1960

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Reserved area licences.

19.—(1) At any time after the grant of a petroleum lease, the Minister may grant to the lessee, in respect of a specified area surrounding the land to which the lease relates, such licence (in this Part referred to as a reserved area licence) as is authorised by this section.

(2) Every reserved area licence shall be granted on such terms (including the reservation of a rent) and conditions as the Minister thinks proper and specifies in such licence.

(3) Every reserved area licence shall be expressed and operate to vest in the licensee the same rights in respect of the area specified therein as would be exercisable by him if he were in fact the holder of an exploration licence in respect of that area.

(4) The Minister shall not, save with the consent of the licensee under a reserved area licence, grant, while the licence is in force, to any other person an exploration licence, a petroleum prospecting licence or a petroleum lease in respect of the area to which the reserved area licence extends.