Schedule 3 MODEL CLAUSES FOR PRODUCTION LICENCES RELATING TO FRONTIER AREAS—INCLUDING BREAK CLAUSEC1

United Kingdom

1. 1Interpretation, etc.
2. 2Grant of Licence
3. 3Term of Licence
4. 4Option to continue Licence into a Second Term
5. 5Expiry of the Licence on Failure to Complete Certain Work
6. 6Option to Continue Licence into a Third Term
7. 7Option to continue the Licence after the Third Term
8. 8Power further to extend term of Licence
9. 9Right of Licensee to determine Licence or surrender part of Licensed Area
10. 10Areas surrendered
11. 10AProvision of contact details to Minister
12. 11Payment of consideration for Licence
13. 12Measurement of Petroleum obtained from the Licensed Area
14. 13Keeping of accounts
15. 14Working obligations
16. 15Development and production programmes
17. 16Provisions supplementary to clause 15
18. 17Commencement and abandonment and plugging of Wells
19. 18Distance of Wells from boundaries of Licensed Area
20. 19Control of Development Wells
21. 20Provision of storage tanks, pipes, pipelines or other receptacles
22. 21Avoidance of harmful methods of working
23. 22Appointment of operators
24. 23Fishing and navigation
25. 24Training
26. 25Unit development
27. 26Directions as to Oil Fields across boundaries
28. 27Licensee to keep records
29. 28Returns
30. 29Licensee to keep samples
31. 30Reports to be treated as confidential
32. 31Inspection of records etc.
33. 32Rights of access
34. 33Power to execute works
35. 34Right of distress
36. 35Diligence
37. 36Indemnity against third party claims
38. 37Advertisements, prospectuses etc.
39. 38Restrictions on assignment, etc.
40. 38AChange in control of Licensee
41. 39Power of revocation
42. 39APower of partial revocation
43. 40Arbitration
44. 41Ministry of Defence
45. 42Department for the Environment Food and Rural Affairs/Scottish Executive