(1)  An application for a lease is pending from the marking out of the land until whichever of the following happens first:

(a) the application is granted;

(b) the application is refused;

(c) the application lapses;

(d) the application is withdrawn.

(2)  An application for a lease lapses 12 months after the marking out unless the Director extends that period.

(3)  The Director may only extend the period of 12 months if satisfied that –

(a) the failure to determine the application is not caused by default of the applicant; or

(b) there is sufficient reason to do so.