3.—(1) The requirements of section 37(1) and (2) do not apply—
(a)to an Agency application for a full licence or transfer licence if—
(i)the application relates to abstraction at a proposed point of abstraction permitted under an existing licence held by the Agency;
(ii)it would take effect immediately after the expiry of that licence;
(iii)it would not permit the quantity of water to be abstracted under that licence to be increased; and
(iv)it would otherwise be subject to materially the same terms as that licence;
(b)to an Agency application under section 51(2) (which provides for the variation of a licence on the application of a licence holder) in relation to an existing abstraction licence held by the Agency that is to remain in force until revoked, if—
(i)the application is for the existing licence to be varied so as to specify a date on which that licence will expire;
(ii)the varied licence would not permit the quantity of water that may be abstracted under the existing licence to be increased; and
(iii)the varied licence would otherwise be subject to materially the same terms as the existing licence; or
(c)to an application for a full licence, a transfer licence or an impounding licence, or the variation of such a licence, if the relevant authority notifies the Agency that complying with those requirements in relation to that application would be contrary to the interests of national security.
(2) In paragraph (1) “the relevant authority” means—
(a)in the case of an application in relation to abstraction or to impounding works in England, the Secretary of State; and
(b)in the case of an application in relation to abstraction or to impounding works in Wales, the Secretary of State or the Assembly.