approval may be revised once during the twoyear validity period of such approval. (ii) Exploitation (for use of geothermal resources) and power plants: Licenses/approvals for exploitation and power plants are perpetual (as mentioned above). 7.2 Does the license granting authority have the power to revoke or terminate licenses? If yes, what actions of the license holder would warrant the termination of the license? (i) Exploration (including drilling): While drilling for exploration does not require a license, if there is any evidence that the drilling has had a material impact on the yield, temperature or composition of geothermal fluid, the local government authority can order the party conducting such drilling to take any necessary measures to remedy such impact. (ii) Exploitation: The local government authority can revoke the license/approval if: a) In the case of exploitation involving drilling only (and not the exploitation of geothermal resources), it is determined that the drilling will have an impact on the yield, temperature and composition of thermal fluid. b) It is determined that the drilling facilities do not meet the required technical criteria for prevention of accidents caused by natural gas in drilling. c) In the case of exploitation involving drilling only (and not the exploitation of geothermal resources), it is determined that there are risks of damage to public interests (e.g. landslide, overflow or land subsidence). d) The license holder has violated the Hot Spring Act or governmental orders under the Hot Spring Act. e) The license holder is not in compliance with the conditions of the license/approval.
It is possible for the License Granting Authority to impose additional conditions into licenses which provide stricter terms and conditions for licensees, e.g. in connection with health and safety requirements, preservation of thermal water, prevention of accidents. However, the License Granting Authority cannot provide more lenient terms and conditions for licensees. 7.4 Which remedies does the license granting authority have in order to enforce compliance to the terms and conditions of a license, other than by revoking the license? If the licensee is not complying with the terms and conditions of a license, the License Granting Authority may issue “administrative guidance� (which is not legally enforceable) to the licensee. The License Granting Authority may also issue an order to the licensee to take measures to preserve thermal water and/or prevent accidents caused by combustible natural gas, or otherwise to protect public interests. Failure to comply with such an order is punishable by a fine of up to 500,000 yen and/or imprisonment for up to 6 months. The final remedy available to the License Granting Authority is revocation of the license
8. Regulatory and information obligations 8.1 Briefly outline the surveillance carried out by the regulatory authorities during the license period, e.g. with regards to reporting duties and/or on-site visits? (i) Exploitation: Local government authorities may impose reporting duties on the license holder (e.g. periodic monitoring and reporting regarding geothermal resources) and/or carry out on-site inspections during the license period. (ii) Power plants: The license holder is required to periodically conduct internal inspections of the power plant facilities in accordance with
JAPAN
(iii) Power plant: METI may order a power plant operator to suspend or restrict its use of the power plant if the power plant does not meet the required technical criteria.
7.3 Can the license granting authority set forth conditions into licenses which provide for (i) stricter terms and conditions for licensees or (ii) more lenient terms and conditions for licensees, when such terms and conditions (whether stricter or more lenient) are not otherwise provided for by law?
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