89ZNDecision of Minister

1. The Minister, after following the processes set out in sections 89ZL and 89ZM, must—

2. determine the acceptable financial security arrangement to be put in place and maintained by or on behalf of the permit holder or licence holder, including, without limitation,—
   1. the amount, or the mechanism for determining the amount, secured by each financial security comprised in the financial security arrangement:
   2. the time by which the financial security arrangement must be in place (including, if applicable, the times when different financial securities that comprise the financial security arrangement must or may be in place):
   3. if applicable, how the financial securities that comprise the financial security arrangement are to be held and who is to hold them:
   4. the circumstances in which 1 or more parties to each financial security will be released from their obligations to maintain that financial security:
   5. any other matters that the Minister considers appropriate:
3. impose any conditions of the financial security arrangement that the Minister considers appropriate.

4. The Minister may also direct how the financial security arrangement must operate, in accordance with the prescribed requirements (if any).

5. If the financial security arrangement required includes a bond or a monetary deposit paid to the chief executive, then,—

6. if the bond or monetary deposit relates to a participating interest in a permit, section 97 (except subsection (4)) applies:
7. if the bond or monetary deposit relates to a licence or a participating interest in a licence, section 47H of the Petroleum Act 1937 (as preserved by clause 12(1)(a) of Schedule 1 of this Act) applies.

8. If the financial security arrangement required includes a bond or a monetary deposit held either in accordance with section 97 or separately by a third party (for example, in an escrow account), the permit holder or licence holder may, with the consent of the Minister, use a part or all of those amounts to carry out the decommissioning to which that financial security arrangement relates.

9. The Minister must give the permit holder or licence holder a notice of the Minister’s decision specifying the acceptable financial security arrangement to be put in place and maintained, including, without limitation,—

10. the amount, or the mechanism to be used for determining the amount, to be secured by each financial security comprised in the financial security arrangement:
11. the time by which the financial security arrangement must be in place, including, if applicable, the times when different financial securities that comprise the financial security arrangement must or may be in place:
12. if applicable, how the financial securities that comprise the financial security arrangement are to be held and who must hold them:
13. the circumstances in which 1 or more parties to each financial security will be released from their obligation to maintain the financial security:
14. any other matters the Minister considers appropriate:
15. a summary of the reasons for the Minister’s decision.

16. To avoid doubt, the Minister may enter into, be a party to, or execute any financial security on behalf of the Crown.