Petroleum (Submerged Lands) (Royalty) Amendment Act 1991

No. 76 of 1991

An Act to amend the Petroleum (Submerged Lands) (Royalty) Act 1967

[Assented to 25 June 1991]

The Parliament of Australia enacts:

PART 1—PRELIMINARY

Short title etc.

1.  (1) This Act may be cited as the Petroleum (Submerged Lands) (Royalty) Amendment Act 1991.

(2) In this Act, “Principal Act” means the Petroleum (Submerged Lands) (Royalty) Act 1967¹.

Commencement

2.  This Act commences on the day on which it receives the Royal Assent.

Payment of royalty

3.    Section 11 of the Principal Act is amended by omitting from subsection (3) “the last preceding sub-section” and substituting “subsection (2) or paragraph 11b (2) (a)”.

4.    (1) After section 11 of the Principal Act the following sections are inserted:

Provisional payment of royalty

“11a. (1) Where, in relation to petroleum recovered during a royalty period, the value of the petroleum has not been agreed or determined under section 9, the Designated Authority may determine a provisional value.

“(2) Where:

(a)     a provisional value of any petroleum has been determined under subsection (1); and

(b)     the value of that petroleum has not yet been agreed or determined under section 9;

this Act operates in relation to that petroleum as if:

(c)     the provisional value of the petroleum were its value; and

(d)     the determination of the provisional value were an agreement or determination under section 9.

Adjustment of payments of royalty

“11b. (1) This section applies:

(a)     where subsection 11a (2) has operated in relation to petroleum recovered during a royalty period and a value of the petroleum different to the provisional value is subsequently agreed or determined under section 9; or

(b)    where an error has been made in the calculation of royalty due or in the application of a procedure by the application of which the value of the petroleum has been ascertained.

“(2) Where this section applies:

(a)     if the determined royalty is greater than the provisional royalty, the difference is payable within 28 days; and

(b)    if the determined royalty is less than the provisional royalty, the difference is deducted from any amount subsequently payable by the lessee, permittee or licensee concerned.

“(3) In this section:

‘determined royalty’ means:

(a)     where paragraph (1) (a) applies, the amount of royalty payable in relation to the petroleum on the basis of the value ascertained under section 9; and

(b)    where paragraph (1) (b) applies, the amount of royalty payable in relation to the petroleum;

‘provisional royalty’ means:

(a)     where paragraph (1) (a) applies, the amount of royalty payable in relation to the petroleum on the basis of the provisional value; and

(b)    where paragraph (1) (b) applies, the amount of royalty demanded in relation to the petroleum as a result of the erroneous calculation.”.

(2)    Sections 11a and 11b of the Principal Act, as amended by this Act, apply in relation to petroleum recovered during a royalty period commencing on or after the date of commencement of this Act.

(3)    Sections 11a and 11b of the Principal Act, as amended by this Act, apply in relation to petroleum recovered during a royalty period that commenced before the commencement of this Act if, at that commencement, the value of the petroleum had not been agreed or determined under section 9 of the Principal Act.

Royalty, etc., a debt due to the Commonwealth

5. Section 13 of the Principal Act is amended by inserting after paragraph (b) the following paragraph:

“(ba) an amount payable under paragraph 11b (2) (a) of this Act;”.

NOTE

1. No. 119, 1967, as amended. For previous amendments, see No. 37, 1976; No. 81, 1980; No. 81, 1985; and No. 145, 1987.

[Minister’s second reading speech made in—

House of Representatives on 8 May 1991

Senate on 16 May 1991]