Compliance with Expenditure Condition (Regulation 82) (NT)

The following information relates to EL’s that are not subject to an approved expenditure project area, with the exception of action taken under section 105 to cancel part of the title area.

If the relevant expenditure condition has not been complied with in any operational year, the title holder may make application to the Minister for a variation of a condition under section 100 of the Act and pay the fee mentioned in Schedule 1 Part 1 of the Regulations.

Under the provisions of regulation 82(2), if the title holder contravenes the expenditure condition in an operational year when the title area must be reduced under section 29 of the Act (years 2, 4 and 6), the Minister need not consider an application to waive (all or part of) the required reduction of the title area made under section 29(4) of the Act.

Before making a decision to refuse an application under section 29(4), the Minister must take into account the effect that a reduction may have on the authorised activities being conducted on the project area (if applicable).

If the title holder contravenes the expenditure condition for two consecutive years, the Minister may take action under section 105 of the Act to cancel part of the EL title area.

The number of blocks subject to a cancellation for non-compliance with expenditure conditions, under section 105 relates to individual EL’s and in the case of a project area, all EL’s within that project area and will be calculated on:

• the proposed expenditure nominated for each of the two consecutive years;
• the amount to be spent on each block held in the second consecutive year (proposed expenditure divided by the number of blocks held);
• actual expenditure for the two consecutive years; and
• difference between the proposed expenditure and the actual expenditure (underspend).

The following formula will then be applied to the resultant figures: Total underspend x 50% ÷ amount to be spent per block = number of blocks subject to cancellation.

Example of calculations for block cancellation

• Total consecutive 2 year proposed expenditure ÷ number of blocks held in 2nd year of non-compliance
  = amount to be spent per block
  $145 000 ÷ 125 = $1160

• Total consecutive 2 year proposed expenditure – actual consecutive 2 year expenditure
  = underspend
  $145 000 - $72 100 = $72 900

• Total underspend x 50% ÷ amount to be spent per block
  = number of blocks subject to cancellation
  $72 900 x 50% = $36 450 ÷ $1160 = 31.42 Blocks