(1) If the permitee, licensee or lessee or his executor, administrator or assignee at any time during the term of the permit, licence or lease: -
(a) fails to fulfil or contravenes, any of the terms, covenants and conditions contained therein, or
(b) fails tc use the offshore area covered by it for bonafide purpose for which it has been granted, or .(c) use sueh offshore area for a purpose other than for which it has been granted, or
(d) fails to comply with Indian laws and regulations, international conventions or treaties to which Government is a party and the laws and customs governing the High Seas including those relevant to environmental protection, pollution control including hazardous wastes, or
(e) fails to abide by the lawful directives of the administering authority and Security agencies, the administering authority may, where it is satisfied that the failure, contravention or use is such as can not be remedied, may cancel the permit, licence or lease with forfeiture of whole or any part of the security deposit made under sub rule (1) of rule 11, sub rule(1) of rule 21, or rule 34, after serving a thirty days notice to such person and after considering the representation, if any, made by him and such cancellation shall be conveyed to the permitee, licensee or lessee by a registered letter and shall be effective from the date of its receipt.
CMFTII—TTO3(i)] nrca ^i TRnm : sraraR^i 133
(2) if the failure, contravention or use referred to in sub-rule (1), is considered to be of a remediable nature, the administering authority shall give notice to such person requiring him to remedy the same within sixty days from the date ot receipt of the notice and informing him that penalty as aforesaid may be imposed if such remedy is not provided within such period. The administering authority may, after considering the representation, if any, made by such permitee, licensee or lessee, impose the aforesaid penalty if such person fails to provide remedy within such period.
Provided that the failure on the part of such a person to fulfil any of the terms, covenants and conditions of the permit, licence or lease shall not give the administering authority any power to impose the aforesaid penalty in so far as such failure arises from the force majeure and if through force majeure the fulfillment of any of the terms covenants and the conditions of the permit, licence or lease is delayed, the period of such delay shall be added to the period fixed by the permit, licence or lease for the performance of any act. Explanation : For the purpose of these rules "Force majeure" includes an act of God, war, storm, lightening, explosion, fire, earthquake and any other happening which the permitee, licensee or lessee could not reasonably prevent or control.
(3) If reconnaissance, exploration or production operations are not carried out as per the scheme of reconnaissance or work programme for exploration or work programme for production, as the case may be, the administering authority may order suspension of all or any of the operations and permit continuance of only such operations as may be necessary to restore conditions as envisaged in the scheme of reconnaissance or work programme for exploration or work programme for production.
(4) If during term of a permit, licence or lease any part of the offshore area covered by it, is required for any public purpose, the administering authority, may upon one month's notice and after considering the representation, if any, made by the persor.
concerned, cancel such permit, licence or lease in so far as it relates to the said part of the offshore area subject to such restrictions and conditions as it may impose, and such cancellation shall be effective from the date of receipt of written communication by the permitee, licensee or lessee