| (1) | Any 0P26 mining lease in force immediately before this Act took effect continues in force for a period of five years from the date on which this Act took effect, subject to the terms and conditions under which it was granted. |
| (2) | Any holder of a lease contemplated in subitem (1) who wishes to convert the lease into a production right in terms of this Act, must lodge an application for the conversion of the lease at the designated agency together with— |
| (b) | a sketch plan or diagram depicting the area for which the conversion is required, which area may not be larger than the area for which he or she holds the lease; |
| (c) | a statement setting out the period during which he or she conducted production operations before the date on which this Act took effect; |
| (d) | a statement setting out the period for which the production right is required substantiated by a mining work programme; |
| (e) | an affidavit verifying that the holder is conducting production operations on the area of the land to which the conversion relates and setting out the period for which such production operation has been conducted; |
| (f) | a prescribed social and labour plan; |
| (g) | information as to whether or not the old order 0P26 lease is encumbered by any mortgage bond or other right registered at the Deeds Office or Mineral and Petroleum Titles Registration Office; |
| (h) | a statement setting out the terms and conditions which apply to the lease; |
| (j) | an undertaking to the effect that, and a statement setting out the manner in which, the holder of the lease or sublease will give effect to the object referred to in section 2(d) and 2(f). |
| (3) | The Minister must convert the lease if the holder— |
| (a) | has complied with the provisions of subitem (2); |
| (b) | is producing petroleum in respect of the lease in question; |
| (c) | indicates that he or she will continue to conduct production upon the conversion of such lease; and |
| (d) | has paid the prescribed conversion fee. |
| (4) | No terms and conditions applicable to the lease remain in force if they are contrary to any provision of the Constitution or this Act. |
| (5) | The holder must lodge the right converted under subitem (3) within 90 days from the date on which he or she received notice of conversion at the Mineral and Petroleum Titles Registration Office for registration and simultaneously at the Deeds office or the Mineral and Petroleum Titles Registration Office for deregistration of OP26 lease, as the case may be. |
[Item 5(5) of Schedule II substituted by section 81(a) of the Mineral and Petroleum Resources Development Amendment Act, 2008]
| (6) | If a mortgage bond has been registered in terms of the Deeds Registries Act, 1937 (Act No. 47 of 1937), or the Mining Titles Registration Act, 1967 (Act No. 16 of 1967), over the lease, the production right into which it is converted must be registered subject to such mortgage bond, and the relevant registrar must make such endorsements on any relevant document and such entries in his or her registers as may be necessary in order to give effect this subitem, without payment of transfer duty; stamp duty; registration fees or charges. |
| (7) | Upon the conversion of the lease and the registration of the production right into which it was converted, the lease ceases to exist. |
[Item 5(7) of Schedule II substituted by section 81(b) of the Mineral and Petroleum Resources Development Amendment Act, 2008]
| (8) | If the holder fails to lodge the lease for conversion before the expiry of the period referred to in subitem (1) the sublease ceases to exist. |
