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

Chapter 6 : Petroleum Exploration and Production

75. Issuing and duration of reconnaissance permit

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(1)Subject to subsection (4), the Minister must issue a reconnaissance permit if—
(a)the applicant has access to financial resources and has the technical ability to conduct the proposed reconnaissance operation;

[Section 75(1)(a) substituted by section 54 of the Mineral and Petroleum Resources Development Amendment Act, 2008]

(b)the estimated expenditure is compatible with the intended reconnaissance operation and duration of the reconnaissance programme;
(c)the reconnaissance will not result in unacceptable pollution, ecological degradation or damage to the environment and that the environmental authorization is issued;

[Section 75(1)(c) substituted by section 54 of the Mineral and Petroleum Resources Development Amendment Act, 2008]

(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); and
(e)the applicant is not in contravention of any relevant provision of this Act.

 

(2)The Minister must refuse to issue a reconnaissance permit if the application does not meet all the requirements contemplated in subsection (1).

 

(3)If the Minister refuses to issue a reconnaissance permit, the Minister must, within 30 days of the decision, in writing notify the applicant of the decision and the reasons therefor.

 

(4)A reconnaissance permit issued in terms of subsection (1) is—
(a)subject to prescribed terms and conditions;
(b)valid for a period not exceeding one year;
(c)not an exclusive right;
(d)not transferable; and
(e)not renewable.

 

(5)The holder of the reconnaissance permit must—
(a)actively conduct reconnaissance operations in respect of petroleum on the relevant area in accordance with the reconnaissance programme;
(b)comply with the terms and conditions of the reconnaissance permit, and the relevant provisions of this Act and any other law; and
(c)pay the prescribed reconnaissance fee to the designated agency.