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

Chapter 6 : Petroleum Exploration and Production

80. Granting and duration of exploration right

Purchase cart Previous page Return to chapter overview Next page

 

(1)The Minister must grant an exploration right if—
(a)the applicant has access to financial resources and has the technical ability to conduct the proposed exploration operation optimally in accordance with the exploration work programme;
(b)the estimated expenditure is compatible with the intended exploration operation and duration of the exploration work programme;
(c)the Minister has issued an environmental authorization;

[Section 80(1)(c) substituted by section 58(a) 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);
(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 technical co-operation permit, if applicable; and
(g)the granting of such right will further the objects referred to in section 2(d) and (f).

 

(2)The Minister may, having regard to the type of petroleum resource concerned and extent of exploration project, request that the applicant gives effect to section 2(d).

[Section 80(2) substituted by section 58(b) of the Mineral and Petroleum Resources Development Amendment Act, 2008]

 

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

[Section 80(3) substituted by section 58(c) of the Mineral and Petroleum Resources Development Amendment Act, 2008]

 

(4)If the Minister refuses to grant an exploration right, the Minister must, within 30 days of the decision, in writing notify the applicant of the decision and the reasons therefor.

 

(5)An exploration right is subject to prescribed terms and conditions and is valid for the period specified in the right. which period may not exceed three years.

 

(6)An exploration right granted in terms of subsection (1) comes into effect on the effective date.

[Section 80(6) inserted by section 58(d) of the Mineral and Petroleum Resources Development Amendment Act, 2008]