Section 9
Single petroleum agreement for contiguous areas
Notwithstanding subsection 8(2) and subject to subsection
(2)
, the Petroleum Authority may enter into a single petroleum agreement in respect of two or more contiguous areas of land although the total area covered by the agreement exceeds 4,000
square miles.
(2)
Where the total area covered by a single petroleum agreement entered into in respect of two or more contiguous areas exceeds 4,000 square miles, the obligations with respect to expenditure commitments and fixed yearly payments under the agreement shall be increased proportionately in the proportion that the excess area bears to the area of 4,000 square miles.
10
(3)
For the purpose of this section, “contiguous areas” means areas which are situated on the same geological structure or cover a group of geologically similar and related structures.