# The Petroleum Licensing (Production) (Seaward Areas) Regulations 2008, Paragraph 6: Option to continue licence into a Second Term

Extent: E+W+S+N.I.

(1) At any time not later than one month before the expiry of Phase C of the Initial Term, or such shorter notice period as the OGA may in its discretion permit, the Licensee may—
(a) subject to payment of the sums specified in Schedule 2 and to performance of the terms and conditions contained in this licence including, without limitation, those conditions set out in paragraph (3) of this clause; and
(b) conditional upon due performance by the Licensee of the Work Programme before the expiry of Phase C of the Initial Term,
give notice in writing to the OGA in the manner hereinafter provided that he desires this licence to continue in force in relation to part of the Licensed Area (“the Continuing Part”).
(2) Where the Licensee gives notice to the OGA in accordance with paragraph (1) of this clause such notice must indicate that he will determine this licence in relation to such part of the Licensed Area as shall be described by the Licensee in the notice (“the Surrendered Part”) in accordance with the requirements of paragraph (3) of this clause.
(3) Subject to paragraph (4) of this clause, the Surrendered Part must consist in an area which, when taken together with any one or more areas previously surrendered, is no less than the Mandatory Surrender Area.
(4) The Licensee shall not be obliged to surrender so much of the Licensed Area that following such surrender the Licensed Area comprises less than thirty Sections.
(5) Any notice served in accordance with paragraph (1) of this clause shall specify a date not later than the expiry of Phase C of the Initial Term on which the Surrendered Part is to be surrendered.
(6) This licence shall upon the option conferred by this clause being duly exercised but subject to the provisions of clause 3 of this licence continue in respect of the Continuing Part for the Second Term.

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Source: https://www.legislation.gov.uk/uksi/2008/225/schedule/paragraph/6 (the official version)
Page: https://openlegislation.uk/petroleum-licensing-production-seaward-areas-regulations-2008/schedule/paragraph-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.