>As I recall from long ago, the 35 years is the exclusive production period. So John is assuming production has been proven and the 35 yr period had started ?

35 years is actually the maximum term of a concession contract, not the maximum term of a production license (aka Mining Lease). TXM already had the concession for 8 years before getting the Mining Plot on May 22, 2007, so the remaining term then was 27 years. The concession contract can be renewed for an additional 17.5 years.

Mining Act Section 12 (1) The Minister shall conclude a concession contract with the winner of the competition. The concession contract may be concluded for a period of no more than 35 years, which may be extended on one occasion, by no more than half of the term of the concession contract.

However, once a Mining Lease is issued, production has to start within 5 years, but the owner of the lease can apply for an extention.

(5) The mining entrepreneur shall commence exploitation, the operational underground storage of hydrocarbons within 5 years reckoned from the designation of the mining lease. The mining entrepreneur may, in relation to a mining lease, request no more than on one occasion from the mining supervision to extend the deadline set for the commencement of exploitation or operational storage, by no more than 5 years. In case of extension the mining entrepreneur shall pay compensation.

If production is not started within that timeframe, the concession is then put up for tender. This is done by an announcement in the Official Journal of the European Union

(6) In case of defaulting the deadline set for the commencement of exploitation or operational storage, in the absence of license, furthermore, the failure of the mining entrepreneur to meet his obligation to pay the prescribed compensation, as well as in case of the termination without legal successor of the mining entrepreneur the mining supervision shall cancel right of mining of the mining entrepreneur, and it shall publish right of mining existing for the mining lease for the purpose of transfer on the homepage of mining supervision in the Mining Journal, and, in case of hydrocarbons, also in the Official Journal of the European Union.

Which is exactly what the head of the Mining Bureau stated in Fridays news article:

"If there is no production in the Makó Trough by 2012, Falcon Oil & Gas could lose the production licence acquired in May of 2007, and the area would become free again to anyone."

" According to the rules, when the area becomes open again then the applicants are required to submit a tender in the EU's official journal."