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Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008

  • - C2008A00117
  • In force - Latest Version
Act No. 117 of 2008 as made
An Act to amend the Offshore Petroleum Act 2006, and for other purposes
Administered by: Resources, Energy and Tourism
Originating Bill: Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008
Registered 25 Nov 2008
Date of Assent 21 Nov 2008
Table of contents.
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1 Short title
2 Commencement
Expand 3 Schedule(s)3 Schedule(s)
2A Object
11A Tied titles
14A Terminal point
14B Declared greenhouse gas facility
15A Potential greenhouse gas storage formation
15B Eligible greenhouse gas storage formation
15C Potential greenhouse gas injection site
15D Incidental greenhouse gas‑related substance
15E Site plan—identified greenhouse gas storage formation
15F Significant risk of a significant adverse impact—approval of key petroleum operations
15FA Significant risk of a significant adverse impact—grant of production licence
15FB Significant risk of a significant adverse impact—approval of key greenhouse gas operations
15FC Significant risk of a significant adverse impact—grant of greenhouse gas injection licence
15FD Significant risk of a significant adverse impact—power of responsible Commonwealth Minister to protect petroleum
15G Direction given by the responsible Commonwealth Minister
15H Securities
15J Designated agreements
79A Declared exploration permit—approval by responsible Commonwealth Minister of key petroleum operations
79B Declared exploration permits
114A Declared retention lease—approval by responsible Commonwealth Minister of key petroleum operations
114B Declared retention leases
138A Declared production licence—approval by responsible Commonwealth Minister of key petroleum operations
138B Declared production licences
146A Joint Authority may defer taking action on application for production licence if there is a pending application for a greenhouse gas assessment permit
174A Consultation with greenhouse gas titleholders—grant of infrastructure licence
177A Consultation with greenhouse gas titleholders—variation of infrastructure licence
177B Directions by responsible Commonwealth Minister
181A Approval by Joint Authority of greenhouse gas substance to be conveyed in a pipeline
186A Rights of production licensees following application for greenhouse gas‑related pipeline licences by other persons
186B Rights of greenhouse gas injection licensees following application for greenhouse gas‑related pipeline licences by other persons
187A Grant of greenhouse gas‑related pipeline licence—offer document
188A Refusal to grant greenhouse gas‑related pipeline licence
201A Holders to be informed of the grant of greenhouse gas search authority
226A Responsible Commonwealth Minister may require information about negotiations for a designated agreement
249AA Simplified outline
249AB Simplified outline
249AC Prohibition of unauthorised exploration for potential greenhouse gas storage formation, or potential greenhouse gas injection site, in offshore area
249AD Rights conferred by greenhouse gas assessment permit
249AE Conditions of greenhouse gas assessment permits
249AF Approval by responsible Commonwealth Minister of key greenhouse gas operations
249AH Duration of greenhouse gas assessment permit
249AHA Extension of greenhouse gas assessment permit if permittee applies for a declaration of an identified greenhouse gas storage formation
249AI Extension of greenhouse gas assessment permit if permittee applies for a greenhouse gas holding lease or greenhouse gas injection licence
249AJ Application for work‑bid greenhouse gas assessment permit—advertising of blocks
249AJA Retention lessee or production licensee to be notified of proposal to advertise blocks
249AK Grant of work‑bid greenhouse gas assessment permit—offer document
249AL Ranking of multiple applicants for work‑bid greenhouse gas assessment permit
249AM Grant of work‑bid greenhouse gas assessment permit
249AN Withdrawal of application
249AO Effect of withdrawal or lapse of application
249AP Application for cash‑bid greenhouse gas assessment permit
249APA Retention lessee or production licensee to be notified of proposal to advertise blocks
249AQ Grant of cash‑bid greenhouse gas assessment permit—only one application
249AR Grant of cash‑bid greenhouse gas assessment permit—2 or more applications
249AS Grant of cash‑bid greenhouse gas assessment permit
249ASA Application for renewal of greenhouse gas assessment permit
249ASB Renewal of greenhouse gas assessment permit—offer document
249ASC Refusal to renew greenhouse gas assessment permit
249ASD Renewal of greenhouse gas assessment permit
249AU Declaration of identified greenhouse gas storage formation
249AUA Variation of declaration of identified greenhouse gas storage formation
249AUB Revocation of declaration of identified greenhouse gas storage formation
249AUBA Register of Identified Greenhouse Gas Storage Formations
249AV Responsible Commonwealth Minister may give directions to greenhouse gas assessment permittees
249AW Compliance with directions
249BA Simplified outline
249BB Rights conferred by greenhouse gas holding lease
249BC Conditions of greenhouse gas holding leases
249BD Approval by responsible Commonwealth Minister of key greenhouse gas operations
249BF Duration of greenhouse gas holding lease
249BG Extension of greenhouse gas holding lease if lessee applies for a special greenhouse gas holding lease or greenhouse gas injection licence
249BH Application for greenhouse gas holding lease by the holder of a greenhouse gas assessment permit
249BI Grant of greenhouse gas holding lease—offer document
249BJ Refusal to grant greenhouse gas holding lease
249BK Grant of greenhouse gas holding lease
249BL Greenhouse gas assessment permit ceases to be in force when greenhouse gas holding lease comes into force
249BM Greenhouse gas assessment permit transferred—transferee to be treated as applicant
249BN Application for greenhouse gas holding lease by the holder of a greenhouse gas injection licence
249BO Grant of greenhouse gas holding lease—offer document
249BP Refusal to grant greenhouse gas holding lease
249BQ Grant of greenhouse gas holding lease
249BR Greenhouse gas injection licence ceases to be in force when greenhouse gas holding lease comes into force
249BS Greenhouse gas injection licence transferred—transferee to be treated as applicant
249BSA Application for special greenhouse gas holding lease by an unsuccessful applicant for a greenhouse gas injection licence
249BSB Grant of special greenhouse gas holding lease—offer document
249BSC Grant of special greenhouse gas holding lease
249BSD Greenhouse gas assessment permit ceases to be in force when special greenhouse gas holding lease comes into force
249BSE Ordinary greenhouse gas holding lease ceases to be in force when special greenhouse gas holding lease comes into force
249BSF Greenhouse gas assessment permit transfer—transferee to be treated as applicant
249BSFA Greenhouse gas holding lease transfer—transferee to be treated as applicant
249BSG Application for greenhouse gas holding lease by the holder of a retention lease
249BSH Grant of greenhouse gas holding lease—offer document
249BSI Grant of greenhouse gas holding lease
249BSJ Retention lease transfer—transferee to be treated as applicant
249BT Application for renewal of greenhouse gas holding lease
249BU Renewal of greenhouse gas holding lease—offer document
249BV Refusal to renew greenhouse gas holding lease
249BW Renewal of greenhouse gas holding lease
249BZ Responsible Commonwealth Minister may give directions to greenhouse gas holding lessees
249BZA Compliance with directions
249BZB Responsible Commonwealth Minister may request special greenhouse gas holding lessee to apply for a greenhouse gas injection licence
249BZC Cancellation of certain greenhouse gas holding leases granted to the holders of retention leases
249CB Simplified outline
249CC Prohibition of unauthorised injection and storage of substances in offshore area
249CD Rights conferred by greenhouse gas injection licence
249CE Conditions of greenhouse gas injection licences
249CF Duration of greenhouse gas injection licence
249CG Termination of greenhouse gas injection licence if no injection operations for 5 years
249CH Application for greenhouse gas injection licence by greenhouse gas assessment permittee or greenhouse gas holding lessee
249CI Offer document
249CJ Refusal to grant greenhouse gas injection licence
249CJA Grant of greenhouse gas injection licence
249CK Deferral of decision to grant greenhouse gas injection licence—pending application for post‑commencement exploration permit
249CO Greenhouse gas assessment permit or greenhouse gas holding lease ceases to be in force when greenhouse gas injection licence comes into force
249CP Greenhouse gas assessment permit transfer—transferee to be treated as applicant
249CPA Greenhouse gas holding lease transfer—transferee to be treated as applicant
249CQ Application for greenhouse gas injection licence by the holder of a production licence
249CR Grant of greenhouse gas injection licence—offer document
249CRA Refusal to grant greenhouse gas injection licence
249CRB Grant of greenhouse gas injection licence
249CRE Production licence transferred—transferee to be treated as applicant
249CT Variation of matters specified in greenhouse gas injection licence—general
249CTA Variation of matters specified in greenhouse gas injection licence—declaration of identified greenhouse gas storage formation varied
249CXA Responsible Commonwealth Minister may give greenhouse gas injection licensee directions to protect geological formations containing petroleum pools etc.
249CXB Consultation—directions to do something outside the licence area
249CY Compliance with directions
249CZ Serious situation
249CZA Powers of responsible Commonwealth Minister to deal with serious situations
249CZAA Consultation—directions to do something outside the licence area
249CZB Compliance with directions
249CZC Powers of responsible Commonwealth Minister to protect petroleum discovered in the title area of a pre‑commencement petroleum title
249CZCA Consultation—directions to do something outside the licence area
249CZD Compliance with directions
249CZE Application for site closing certificate
249CZEA Variation of application for site closing certificate
249CZF Issue of site closing certificate—pre‑certificate notice
249CZFB Acknowledgement of receipt of application for site closing certificate
249CZG Refusal to give pre‑certificate notice
249CZGAA Pre‑certificate notice—security etc.
249CZGA Issue of site closing certificate
249CZH Greenhouse gas injection licence transferred—transferee to be treated as applicant
249CZJ Duration of site closing certificate
249CZJA Transfer of site closing certificate
249CZJB Transfer of securities
249CZJC Discharge of securities
249CZM Recovery of the Commonwealth’s costs and expenses
249CZN Closure assurance period
249CZO Indemnity—long‑term liability
249CZP Commonwealth to assume long‑term liability if licensee has ceased to exist
249GA Simplified outline
249GB Rights conferred by greenhouse gas search authority
249GC Conditions of greenhouse gas search authorities
249GD Duration of greenhouse gas search authority
249GE Greenhouse gas search authority cannot be transferred
249GF Application for greenhouse gas search authority
249GG Grant or refusal of greenhouse gas search authority
249GH Holders to be informed of the grant of another greenhouse gas search authority
249GJ Holders to be informed of the grant of a special prospecting authority
249HA Simplified outline
249HB Rights conferred by greenhouse gas special authority
249HC Conditions of greenhouse gas special authorities
249HD Duration of greenhouse gas special authority
249HE Application for greenhouse gas special authority
249HF Grant or refusal of greenhouse gas special authority
249HG Consultation—grant of greenhouse gas special authority
249HI Variation of greenhouse gas special authority
249HJ Consultation—variation of greenhouse gas special authority
249HK Reporting obligations of holders of greenhouse gas special authorities
249HL Revocation of greenhouse gas special authority
249HM Simplified outline
249HN Rights conferred by greenhouse gas research consent
249HO Conditions of greenhouse gas research consents
249HP Grant of greenhouse gas research consent
249JA Application to be made in an approved manner
249JB Application fee
249JC Application may set out additional matters
249JD Responsible Commonwealth Minister may require further information
249JE Offer documents
249JF Acceptance of offer—request by applicant
249JG Acceptance of offer—payment
249JGAA Acceptance of offer—lodgment of security
249JH Consultation—adverse decisions
249JHA Responsible Commonwealth Minister may require information about negotiations for a designated agreement
249KA Variation, suspension and exemption—conditions of titles
249KB Extension of term of greenhouse gas assessment permit or greenhouse gas holding lease—suspension or exemption
249KC Suspension of rights—greenhouse gas assessment permit or greenhouse gas holding lease
249KD Extension of term of greenhouse gas assessment permit or greenhouse gas holding lease—suspension of rights
249KE Variation, suspension and exemption—conditions of greenhouse gas search authorities and greenhouse gas special authorities
249LA Application for consent to surrender title
249LB Consent to surrender title
249LC Surrender of title
249LCA Surrender of greenhouse gas search authority
249LD Surrender of greenhouse gas special authority
249MA Grounds for cancellation of title
249MB Cancellation of title
249MC Consultation
249MD Cancellation of title not affected by other provisions
249ME Cancellation of greenhouse gas search authority
249NA Notification of eligible greenhouse gas storage formation
249NB Notification of discovery of petroleum in greenhouse gas assessment permit area etc.
249NC Disposing of waste or other matter
249NCA Additional securities etc.
249NCB Transfer of securities
249NCC Discharge of securities
249ND Approved site plans
249NDA Co‑existence of greenhouse gas titles and petroleum titles
249NE Reservation of blocks
249NF Interference with other rights
249NG No conditions about payment of money
249NH Certain portions of blocks to be blocks
249NJ Changes to the boundary of the coastal waters of a State or Territory
249NK Commonwealth may monitor the behaviour of a greenhouse gas substance stored in a part of a geological formation
249NL Monitoring information may be made publicly available
250 Simplified outline
258A Application and documents to be forwarded to the responsible Commonwealth Minister
272A Application and documents to be forwarded to the responsible Commonwealth Minister
281A Application and documents to be forwarded to the responsible Commonwealth Minister
298‑250 Simplified outline
298‑251 Definitions
298‑252 Dealing—series of debentures
298‑253 Register to be kept
298‑254 Entries in Register—general
298‑255 Entry in Register—cessation or expiry of title
298‑256 Approval and registration of transfers
298‑257 Application for approval of transfer
298‑258 Documents to accompany application
298‑259 Time limit for application
298‑260 Date of application to be entered in Register
298‑261 Approval of transfer
298‑262 Registration of transfer
298‑263 Instrument of transfer does not create an interest in the title
298‑264 Limit on effect of approval of transfers
298‑265 Application to have name entered on the Register as the holder of a title
298‑266 Entry of name in the Register
298‑267 Application to have new name entered on the Register
298‑268 Alteration in the Register
298‑269 Dealings to which this Part applies
298‑270 Approval and registration of dealings
298‑271 Application for approval of dealing
298‑272 Documents to accompany application
298‑273 Timing of application
298‑274 Application date to be entered in Register
298‑275 Approval of dealing
298‑276 Entry of dealing in Register
298‑277 Retention, inspection and return of instruments
298‑278 Strict compliance with application provisions not required
298‑279 Limit on effect of approval of dealing
298‑280 Provisional application for approval of dealing
298‑281 Documents to accompany provisional application
298‑282 Timing of provisional application
298‑283 Provisional application to be treated as an application under section 298‑271 when title comes into existence
298‑284 Limit on approval of dealing
298‑285 Corrections of clerical errors or obvious defects
298‑286 General power of correction of Register
298‑287 Rectification of Register
298‑288 Responsible Commonwealth Minister may obtain information from applicants
298‑289 Responsible Commonwealth Minister may obtain information from a party to an approved dealing
298‑290 Production and inspection of documents
298‑291 Responsible Commonwealth Minister may retain documents
298‑292 Responsible Commonwealth Minister not concerned with the effect of instrument lodged under this Chapter
298‑293 True consideration to be shown
298‑294 Making a false entry in the Register
298‑295 Falsified documents
298‑296 Inspection of Register and instruments
298‑297 Evidentiary provisions
298‑298 Assessment of fee
316‑301 Work practices
304 Simplified outline
316‑304 Simplified outline
316‑305 General power to give directions
316‑306 Notification of a direction that has an extended application
316‑307 Compliance with directions
316‑308 Responsible Commonwealth Minister may take action if there is a breach of a direction
316‑309 Defence of taking reasonable steps to comply with a direction
316‑310 Simplified outline
316‑311 Remedial directions to current holders of permits, leases and licences
316‑311A Site closing directions to current holders of greenhouse gas injection licences
316‑311B Consultation—directions to do something outside the licence area
316‑312 Remedial directions to former holders of permits, leases, licences and authorities etc.
316‑313 Responsible Commonwealth Minister may take action if a direction has been breached
316‑314 Removal, disposal or sale of property by responsible Commonwealth Minister—breach of direction
316‑315 Removal, disposal or sale of property—limitation of action etc.
316‑317 Simplified outline
316‑318 Appointment of greenhouse gas project inspectors
316‑319 Monitoring powers of greenhouse gas project inspectors
316‑320 Warrants to enter residential premises
316‑321 Interfering with greenhouse gas installations or operations
316‑322 Forfeiture orders etc.
335‑329 Greenhouse gas safety zones
339A Amounts payable to the Commonwealth
340A Fees payable to the Commonwealth
406‑406 Simplified outline
406‑407 Direction to keep records
406‑408 Regulations about data management
406‑409 Responsible Commonwealth Minister or greenhouse gas project inspector may obtain information and documents
406‑410 Copying documents—reasonable compensation
406‑411 Power to examine on oath or affirmation
406‑412 Self‑incrimination
406‑413 Copies of documents
406‑414 Responsible Commonwealth Minister or greenhouse gas project inspector may retain documents
406‑415 False or misleading information
406‑416 False or misleading documents
406‑417 False or misleading evidence
406‑418 Notifiable events—Gazette notice
406‑420 Simplified outline
406‑421 Definitions
406‑421A Documents and samples given to the responsible Commonwealth Minister
406‑422 Protection of confidentiality of documentary information obtained by the responsible Commonwealth Minister
406‑423 Protection of confidentiality of eligible samples obtained by the responsible Commonwealth Minister
406‑424 Responsible Commonwealth Minister may make information or samples available to a Minister, a State Minister or a Northern Territory Minister
406‑427 Fees
406‑429 Privacy Act
406‑430 Publishing or making copies of applicable documents not an infringement of copyright
435A Establishment of expert advisory committees
435B Function of expert advisory committees
435C Appointment of expert advisory committee members etc.
435D Procedures of expert advisory committees
435E Remuneration and allowances
435F Leave of absence
435G Resignation
435H Disclosure of interests to the responsible Commonwealth Minister
435J Disclosure of interests to an expert advisory committee
435K Other terms and conditions
435L Protection of information
435N Responsible Commonwealth Minister may obtain information and documents
435P Copying documents—reasonable compensation
435Q Self‑incrimination
435R Copies of documents
435S Responsible Commonwealth Minister may retain documents
435T False or misleading information
435U False or misleading documents
435V Protection of information
435W Disclosure of information to titleholder etc.
440A Service of documents on responsible Commonwealth Minister
441A Service of documents on 2 or more registered holders of a greenhouse gas title
442B Delegation by responsible Commonwealth Minister
442C Public interest
442D Compensation for acquisition of property
446A Regulations not limited by conditions provisions
447A Exercise of Australia’s rights under international law—injection and storage of greenhouse gas substances in the continental shelf
448A Exercise of Australia’s rights under international law—injection and storage of greenhouse gas substances within territorial limits
13A Petroleum project inspectors—early commencement of greenhouse gas provisions
Expand 13B Petroleum project inspectors—late commencement of greenhouse gas provisions13B Petroleum project inspectors—late commencement of greenhouse gas provisions

 

 

 

 

 

 

Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008

 

No. 117, 2008

 

 

 

 

 

An Act to amend the Offshore Petroleum Act 2006, and for other purposes

  

  


Contents

 

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 2

3............ Schedule(s).......................................................................................... 2

Schedule 1—Amendments relating to greenhouse gas storage etc.          4

Offshore Petroleum Act 2006                                                                                     4

Schedule 2—Amendments to change references to petroleum titles etc. 408

Part 1—Definitions                                                                                                        408

Offshore Petroleum and Greenhouse Gas Storage Act 2006                           408

Part 2—References to petroleum titles etc.                                                         419

Offshore Petroleum and Greenhouse Gas Storage Act 2006                           419

Part 3—Consequential amendments                                                                      427

Offshore Petroleum (Royalty) Act 2006                                                              427

Petroleum Excise (Prices) Act 1987                                                                    429

Petroleum Resource Rent Tax Assessment Act 1987                                         429

Schedule 3—Other consequential amendments                                                430

Australian Energy Market Act 2004                                                                    430

Australian Postal Corporation Act 1989                                                           430

Coral Sea Islands Act 1969                                                                                   430

Corporations Act 2001                                                                                           430

Crimes at Sea Act 2000                                                                                          430

Customs Act 1901                                                                                                    431

Customs Tariff Act 1995                                                                                         431

Environment Protection and Biodiversity Conservation Act 1999               431

Income Tax Assessment Act 1936                                                                          431

International Tax Agreements Act 1953                                                             432

Maritime Transport and Offshore Facilities Security Act 2003                     432

Migration Act 1958                                                                                                 432

Navigation Act 1912                                                                                               432

Occupational Health and Safety (Maritime Industry) Act 1993                    433

Offshore Minerals Act 1994                                                                                   433

Offshore Petroleum Amendment (Greater Sunrise) Act 2007                          434

Offshore Petroleum (Repeals and Consequential Amendments) Act 2006   434

Offshore Petroleum (Royalty) Act 2006                                                              434

Petroleum Excise (Prices) Act 1987                                                                    434

Petroleum Resource Rent Tax Assessment Act 1987                                         435

Quarantine Act 1908                                                                                              437

Radiocommunications Act 1992                                                                           438

Sea Installations Act 1987                                                                                     438

Telecommunications Act 1997                                                                              438

Trade Practices Act 1974                                                                                       438

Schedule 4—Renumbering the Offshore Petroleum and Greenhouse Gas Storage Act 2006        440

Part 1—Renumbering the Offshore Petroleum and Greenhouse Gas Storage Act 2006          440

Offshore Petroleum and Greenhouse Gas Storage Act 2006                           440

Part 2—Consequential amendments                                                                      442

Offshore Petroleum (Repeals and Consequential Amendments) Act 2006   442

Offshore Petroleum (Royalty) Act 2006                                                              442

Petroleum Resource Rent Tax Assessment Act 1987                                         442

Part 3—References in other Acts etc. to renumbered provisions              444

 


 

 

Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008

No. 117, 2008

 

 

 

An Act to amend the Offshore Petroleum Act 2006, and for other purposes

[Assented to 21 November 2008]

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Offshore Petroleum Amendment (Greenhouse Gas Storage) Act 2008.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

21 November 2008

2.  Schedule 1

The day after this Act receives the Royal Assent.

22 November 2008

3.  Schedule 2

Immediately after the commencement of the provision(s) covered by table item 2.

22 November 2008

4.  Schedule 3

The day after this Act receives the Royal Assent.

22 November 2008

5.  Schedule 4, Part 1

Immediately after the commencement of the provision(s) covered by table item 3.

22 November 2008

6.  Schedule 4, Part 2

Immediately after the commencement of the provision(s) covered by table item 4.

22 November 2008

7.  Schedule 4, Part 3

Immediately after the commencement of the provision(s) covered by table item 3.

22 November 2008

Note:          This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

             (2)  Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


 

Schedule 1Amendments relating to greenhouse gas storage etc.

  

Offshore Petroleum Act 2006

1  Title

Omit “offshore petroleum”, substitute “petroleum exploration and recovery, and the injection and storage of greenhouse gas substances, in offshore areas”.

2  Section 1

After “Offshore Petroleum”, insert “and Greenhouse Gas Storage”.

Note:       This item amends the short title of the Act. If another amendment of the Act is described by reference to the Act’s previous short title, that other amendment has effect after the commencement of this item as an amendment of the Act under its amended short title (see section 10 of the Acts Interpretation Act 1901).

2A  After section 2

Insert:

2A  Object

                   The object of this Act is to provide an effective regulatory framework for:

                     (a)  petroleum exploration and recovery; and

                     (b)  the injection and storage of greenhouse gas substances;

in offshore areas.

3  Section 3

Omit:

•      This Act sets up a system for regulating the following activities in offshore areas:

               (a)     exploration for petroleum;

               (b)     recovery of petroleum;

               (c)     construction and operation of petroleum‑related infrastructure facilities;

               (d)     construction and operation of petroleum pipelines.

substitute:

•      This Act sets up a system for regulating the following activities in offshore areas:

               (a)     exploration for petroleum;

               (b)     recovery of petroleum;

               (c)     construction and operation of infrastructure facilities relating to petroleum or greenhouse gas substances;

               (d)     construction and operation of pipelines for conveying petroleum or greenhouse gas substances;

               (e)     exploration for potential greenhouse gas storage formations;

               (f)     injection and storage of greenhouse gas substances.

4  Section 3

Omit:

•      This Act provides for the grant of the following titles:

               (a)     an exploration permit (see Part 2.2);

               (b)     a retention lease (see Part 2.3);

               (c)     a production licence (see Part 2.4);

               (d)     an infrastructure licence (see Part 2.5);

               (e)     a pipeline licence (see Part 2.6);

               (f)     a special prospecting authority (see Part 2.7);

               (g)     an access authority (see Part 2.8).

substitute:

•      This Act provides for the grant of the following titles:

               (a)     an exploration permit (see Part 2.2);

               (b)     a retention lease (see Part 2.3);

               (c)     a production licence (see Part 2.4);

               (d)     an infrastructure licence (see Part 2.5);

               (e)     a pipeline licence (see Part 2.6);

               (f)     a special prospecting authority (see Part 2.7);

               (g)     an access authority (see Part 2.8);

               (h)     a greenhouse gas assessment permit (see Part 2A.2);

                (i)     a greenhouse gas holding lease (see Part 2A.3);

                (j)     a greenhouse gas injection licence (see Part 2A.4);

               (k)     a greenhouse gas search authority (see Part 2A.5);

                (l)     a greenhouse gas special authority (see Part 2A.6).

5  Section 3

Before:

•      The National Offshore Petroleum Safety Authority is responsible for the administration of occupational health and safety provisions.

insert:

•      The responsible Commonwealth Minister is responsible for the administration of greenhouse gas injection and storage provisions.

6  Section 6 (definition of Annual Fees Act)

After “Offshore Petroleum”, insert “and Greenhouse Gas Storage”.

7  Section 6 (definition of approved)

Repeal the definition, substitute:

approved:

                     (a)  when used in any of the following provisions:

                              (i)  Chapter 2A;

                             (ii)  Chapter 3A;

                            (iii)  Chapter 5A;

                            (iv)  section 441A;

                            means approved in writing by the responsible Commonwealth Minister; or

                     (b)  in any other case—means approved in writing by the Designated Authority.

This definition does not apply to the expression approved site plan.

8  Section 6

Insert:

approved site plan means a site plan in respect of which an approval is in force under the regulations.

Note:          See section 249ND.

9  Section 6 (at the end of the definition of authority area)

Add:

               ; or (c)  when used in relation to a greenhouse gas search authority—means the area constituted by the block or blocks that are the subject of the greenhouse gas search authority; or

                     (d)  when used in relation to a greenhouse gas special authority—means the area to which the greenhouse gas special authority relates.

10  Section 6

Insert:

cash‑bid greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Division 3 of Part 2A.2.

10A  Section 6

Insert:

closure assurance period has the meaning given by section 249CZN.

11  Section 6

Insert:

declared exploration permit has the meaning given by section 79B.

12  Section 6

Insert:

declared greenhouse gas facility has the meaning given by section 14B.

13  Section 6

Insert:

declared production licence has the meaning given by section 138B.

14  Section 6

Insert:

declared retention lease has the meaning given by section 114B.

14A  Section 6

Insert:

designated agreement has the meaning given by section 15J.

15  Section 6

Insert:

detection agent means a substance, whether in a gaseous or liquid state, that:

                     (a)  when added to:

                              (i)  another substance; or

                             (ii)  a mixture of other substances;

                            facilitates the monitoring of the behaviour of that other substance or that mixture, as the case may be; and

                     (b)  is specified in the regulations.

15A  Section 6

Insert:

eligible greenhouse gas storage formation has the meaning given by section 15B.

15B  Section 6

Insert:

expert advisory committee means a committee established under section 435A.

15C  Section 6

Insert:

expert advisory committee member means a member of an expert advisory committee, and includes the Chair of an expert advisory committee.

16  Section 6 (definition of expiry date)

Repeal the definition, substitute:

expiry date:

                     (a)  when used in relation to an exploration permit, retention lease or production licence—has the meaning given by subsection 9(1); or

                     (b)  when used in relation to a greenhouse gas assessment permit or a greenhouse gas holding lease (other than a special greenhouse gas holding lease)—has the meaning given by subsection 9(2).

17  Section 6 (definition of explore)

Repeal the definition, substitute:

explore:

                     (a)  when used in relation to petroleum—has a meaning affected by subsection 15(1); or

                     (b)  when used in relation to a potential greenhouse gas storage formation—has a meaning affected by subsections 15(2) and (3); or

                     (c)  when used in relation to a potential greenhouse gas injection site—has a meaning affected by subsection 15(4).

18  Section 6

Insert:

fundamental suitability determinants:

                     (a)  when used in relation to an eligible greenhouse gas storage formation—has the meaning given by subsection 15B(8); or

                     (b)  when used in relation to an identified greenhouse gas storage formation—has the meaning given by subsection 249AU(10).

19  Section 6

Insert:

geological formation includes:

                     (a)  any seal or reservoir of a geological formation; and

                     (b)  any associated geological attributes or features of a geological formation.

20  Section 6 (definition of Greater Sunrise visiting inspector)

Before “project”, insert “petroleum”.

21  Section 6

Insert:

greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Part 2A.2.

22  Section 6

Insert:

greenhouse gas assessment permit area means the permit area of a greenhouse gas assessment permit.

23  Section 6

Insert:

greenhouse gas assessment permittee means the registered holder of a greenhouse gas assessment permit.

24  Section 6

Insert:

greenhouse gas facility line means a pipe, or system of pipes, that is:

                     (a)  for conveying a greenhouse gas substance; and

                     (b)  part of a declared greenhouse gas facility.

25  Section 6

Insert:

greenhouse gas holding lease means a greenhouse gas holding lease granted under Part 2A.3.

26  Section 6

Insert:

greenhouse gas holding lease area means the lease area of a greenhouse gas holding lease.

27  Section 6

Insert:

greenhouse gas holding lessee means the registered holder of a greenhouse gas holding lease.

28  Section 6

Insert:

greenhouse gas infrastructure line means a pipe, or system of pipes, that is:

                     (a)  for conveying a greenhouse gas substance; and

                     (b)  part of an infrastructure facility.

29  Section 6

Insert:

greenhouse gas injection licence means a greenhouse gas injection licence granted under Part 2A.4.

30  Section 6

Insert:

greenhouse gas injection licence area means the licence area of a greenhouse gas injection licence.

31  Section 6

Insert:

greenhouse gas injection licensee means the registered holder of a greenhouse gas injection licence.

32  Section 6

Insert:

greenhouse gas injection line means a pipe, or system of pipes, for:

                     (a)  conveying a greenhouse gas substance to be compressed, processed or otherwise prepared for injection into an identified greenhouse gas storage formation; or

                     (b)  conveying a greenhouse gas substance for storage prior to being injected into an identified greenhouse gas storage formation; or

                     (c)  conveying a greenhouse gas substance for injection into an identified greenhouse gas storage formation;

so long as the greenhouse gas substance does not pass through a terminal point on the pipe, or system of pipes, as the case may be, before it is injected into the identified greenhouse gas storage formation.

33  Section 6

Insert:

greenhouse gas pipeline means:

                     (a)  a pipe, or system of pipes, in an offshore area for conveying a greenhouse gas substance, other than:

                              (i)  a greenhouse gas injection line; or

                             (ii)  a greenhouse gas infrastructure line; or

                            (iii)  a greenhouse gas facility line; or

                            (iv)  a pipe, or a system of pipes, that is specified in the regulations; or

                     (b)  a part of a pipe covered by paragraph (a); or

                     (c)  a part of a system of pipes covered by paragraph (a).

34  Section 6

Insert:

greenhouse gas project inspector means a person appointed as a greenhouse gas project inspector under section 316‑318.

35  Section 6

Insert:

greenhouse gas pumping station means equipment for pumping a greenhouse gas substance or water, and includes any structure associated with that equipment.

36  Section 6

Insert:

greenhouse gas research consent means a greenhouse gas research consent granted under Part 2A.7.

37  Section 6

Insert:

greenhouse gas search authority means a greenhouse gas search authority granted under Part 2A.5.

38  Section 6

Insert:

greenhouse gas special authority means a greenhouse gas special authority granted under Part 2A.6.

39  Section 6

Insert:

greenhouse gas substance means:

                     (a)  carbon dioxide, whether in a gaseous or liquid state; or

                     (b)  a prescribed greenhouse gas, whether in a gaseous or liquid state; or

                     (c)  a mixture of any or all of the following substances:

                              (i)  carbon dioxide, whether in a gaseous or liquid state;

                             (ii)  one or more prescribed greenhouse gases, whether in a gaseous or liquid state;

                            (iii)  one or more incidental greenhouse gas‑related substances, whether in a gaseous or liquid state, that relate to either or both of the substances mentioned in subparagraphs (i) and (ii);

                            (iv)  a prescribed detection agent, whether in a gaseous or liquid state;

                            so long as:

                             (v)  the mixture consists overwhelmingly of either or both of the substances mentioned in subparagraphs (i) and (ii); and

                            (vi)  if the mixture includes a prescribed detection agent—the concentration of the prescribed detection agent in the mixture is not more than the concentration prescribed in relation to that detection agent.

40  Section 6

Insert:

greenhouse gas tank station means a tank, or system of tanks, for holding or storing a greenhouse gas substance, and includes any structure associated with that tank or system of tanks.

41  Section 6

Insert:

greenhouse gas valve station means equipment for regulating the flow of a greenhouse gas substance, and includes any structure associated with that equipment.

42  Section 6

Insert:

identified greenhouse gas storage formation has the meaning given by section 249AU.

43  Section 6

Insert:

incidental greenhouse gas‑related substance has the meaning given by section 15D.

44  Section 6

Insert:

key greenhouse gas operation means:

                     (a)  an operation to make a well; or

                     (b)  an operation to inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation; or

                     (c)  an operation to store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation; or

                     (d)  an operation to inject, on an appraisal basis, air, petroleum or water into a part of a geological formation; or

                     (e)  an operation to store, on an appraisal basis, air, petroleum or water in a part of a geological formation; or

                      (f)  an operation to carry out a seismic survey or any other kind of survey; or

                     (g)  an operation to monitor the behaviour of:

                              (i)  a greenhouse gas substance; or

                             (ii)  air; or

                            (iii)  petroleum; or

                            (iv)  water;

                            stored in a part of a geological formation; or

                     (h)  an operation to carry out baseline investigations relating to the storage of a greenhouse gas substance in a part of the geological formation; or

                      (i)  an operation to take samples of the seabed or subsoil of an offshore area; or

                      (j)  an operation specified in the regulations.

45  Section 6

Insert:

key petroleum operation means:

                     (a)  an operation to make a well; or

                     (b)  an operation to inject a substance into a part of a geological formation; or

                     (c)  an operation to store a substance in a part of a geological formation; or

                     (d)  an operation to carry out a seismic survey or any other kind of survey; or

                     (e)  an operation to monitor the behaviour of a substance stored in a part of a geological formation; or

                      (f)  an operation to take samples of the seabed or subsoil of an offshore area; or

                     (g)  an operation specified in the regulations.

46  Section 6 (definition of lease area)

Repeal the definition, substitute:

lease area:

                     (a)  when used in relation to a retention lease—means the area constituted by the block or blocks that are the subject of the retention lease; or

                     (b)  when used in relation to a greenhouse gas holding lease—means the area constituted by the block or blocks that are the subject of the greenhouse gas holding lease.

47  Section 6 (definition of lessee)

Repeal the definition, substitute:

lessee:

                     (a)  when used in relation to a retention lease—means the registered holder of the retention lease; or

                     (b)  when used in relation to a greenhouse gas holding lease—means the registered holder of the greenhouse gas holding lease.

48  Section 6 (at the end of the definition of licence area) (before the note)

Add:

               ; or (c)  when used in relation to a greenhouse gas injection licence—means the area constituted by the block or blocks that are the subject of the greenhouse gas injection licence.

49  Section 6 (at the end of the definition of licensee)

Add:

               ; or (d)  when used in relation to a greenhouse gas injection licence—means the registered holder of the greenhouse gas injection licence.

49A  Section 6

Insert:

original greenhouse gas assessment permit means a greenhouse gas assessment permit that was granted otherwise than by way of renewal.

50  Section 6

Insert:

original retention lease means a retention lease that was granted otherwise than by way of renewal.

51  Section 6 (definition of partly surrendered)

Omit “or production licence”, substitute “, production licence or greenhouse gas injection licence”.

52  Section 6

Insert:

part of a geological formation includes a part of a combination of geological formations.

53  Section 6 (definition of permit area)

Repeal the definition, substitute:

permit area:

                     (a)  when used in relation to an exploration permit—means the area constituted by the block or blocks that are the subject of the exploration permit; or

                     (b)  when used in relation to a greenhouse gas assessment permit—means the area constituted by the block or blocks that are the subject of the greenhouse gas assessment permit.

54  Section 6 (definition of permittee)

Repeal the definition, substitute:

permittee:

                     (a)  when used in relation to an exploration permit—means the registered holder of the exploration permit; or

                     (b)  when used in relation to a greenhouse gas assessment permit—means the registered holder of the greenhouse gas assessment permit.

55  Section 6

Insert:

petroleum pipeline means:

                     (a)  a pipe, or system of pipes, in an offshore area for conveying petroleum (whether or not the petroleum is recovered from an offshore area), other than a secondary line; or

                     (b)  a part of a pipe covered by paragraph (a); or

                     (c)  a part of a system of pipes covered by paragraph (a).

56  Section 6

Insert:

petroleum project inspector means a person appointed as a petroleum project inspector under section 318.

57  Section 6

Insert:

petroleum pumping station means equipment for pumping petroleum or water, and includes any structure associated with that equipment.

58  Section 6

Insert:

petroleum tank station means a tank, or system of tanks, for holding or storing petroleum, and includes any structure associated with that tank or system of tanks.

59  Section 6

Insert:

petroleum valve station means equipment for regulating the flow of petroleum, and includes any structure associated with that equipment.

60  Section 6 (definition of pipeline)

Repeal the definition, substitute:

pipeline means:

                     (a)  a petroleum pipeline; or

                     (b)  a greenhouse gas pipeline.

61  Section 6 (definition of pipeline provisions)

Repeal the definition, substitute:

pipeline provisions means the following:

                     (a)  Part 2.6;

                     (b)  the definition of greenhouse gas pipeline in this section;

                     (c)  the definition of greenhouse gas pumping station in this section;

                     (d)  the definition of greenhouse gas tank station in this section;

                     (e)  the definition of greenhouse gas valve station in this section;

                      (f)  the definition of petroleum pipeline in this section;

                     (g)  the definition of petroleum pumping station in this section;

                     (h)  the definition of petroleum tank station in this section;

                      (i)  the definition of petroleum valve station in this section;

                      (j)  the definition of pipeline in this section;

                     (k)  item 3 of the table in subsection 301(1).

62  Section 6

Insert:

post‑commencement exploration permit means:

                     (a)  an original exploration permit that was granted after the commencement of this section; or

                     (b)  an exploration permit that was granted by way of renewal, where the original exploration permit was granted after the commencement of this section.

63  Section 6

Insert:

post‑commencement petroleum title means:

                     (a)  a post‑commencement exploration permit; or

                     (b)  a post‑commencement retention lease; or

                     (c)  a post‑commencement production licence.

64  Section 6

Insert:

post‑commencement production licence means:

                     (a)  a production licence that was granted to the registered holder of:

                              (i)  a post‑commencement exploration permit; or

                             (ii)  a post‑commencement retention lease;

                            that was in force over the block or blocks to which the production licence relates; or

                     (b)  a production licence granted under section 153; or

                     (c)  a production licence granted under section 155, where the initial production licence mentioned in section 154 was a post‑commencement production licence.

65  Section 6

Insert:

post‑commencement retention lease means:

                     (a)  an original retention lease that was granted to the registered holder of:

                              (i)  a post‑commencement exploration permit; or

                             (ii)  a post‑commencement production licence;

                            that was in force over the block or blocks to which the original retention lease relates; or

                     (b)  a retention lease that was granted by way of renewal, where the original retention lease was granted to the registered holder of:

                              (i)  a post‑commencement exploration permit; or

                             (ii)  a post‑commencement production licence;

                            that was in force over the block or blocks to which the original retention lease related.

66  Section 6

Insert:

potential greenhouse gas injection site has the meaning given by section 15C.

67  Section 6

Insert:

potential greenhouse gas storage formation has the meaning given by section 15A.

68  Section 6

Insert:

pre‑commencement exploration permit means an exploration permit other than a post‑commencement exploration permit.

69  Section 6

Insert:

pre‑commencement petroleum title means:

                     (a)  a pre‑commencement exploration permit; or

                     (b)  a pre‑commencement retention lease; or

                     (c)  a pre‑commencement production licence.

70  Section 6

Insert:

pre‑commencement production licence means a production licence other than a post‑commencement production licence.

71  Section 6

Insert:

pre‑commencement retention lease means a retention lease other than a post‑commencement retention lease.

72  Section 6 (definition of project inspector)

Repeal the definition.

73  Section 6 (definition of pumping station)

Repeal the definition, substitute:

pumping station means:

                     (a)  a greenhouse gas pumping station; or

                     (b)  a petroleum pumping station.

74  Section 6 (definition of Register)

Repeal the definition, substitute:

Register:

                     (a)  when used in Chapter 3—has the meaning given by section 251; or

                     (b)  when used in Chapter 3A—has the meaning given by section 298‑251.

75  Section 6 (definition of registered holder)

After “Register”, insert “kept under section 253 or 298‑253”.

76  Section 6 (definition of registered holder)

Omit “or access authority”, substitute “, access authority, greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority”.

77  Section 6 (definition of Registration Fees Act)

After “Offshore Petroleum”, insert “and Greenhouse Gas Storage”.

78  Section 6 (definition of regulated operation)

Repeal the definition, substitute:

regulated operation means:

                     (a)  an activity to which Chapter 2 applies; or

                     (b)  an activity to which Chapter 2A applies.

For the purposes of paragraph (b), assume that each reference in subsection 249CC(1) to a substance were a reference to a greenhouse gas substance.

79  Section 6 (definition of renewal)

Repeal the definition, substitute:

renewal:

                     (a)  when used in relation to an exploration permit, retention lease or production licence—has the meaning given by subsection 10(1); or

                     (b)  when used in relation to a greenhouse gas assessment permit or greenhouse gas holding lease—has the meaning given by subsection 10(2).

80  Section 6

Insert:

serious situation, in relation to an identified greenhouse gas storage formation, has the meaning given by section 249CZ.

81  Section 6

Insert:

significant risk has a meaning affected by section 15F, 15FA, 15FB, 15FC or 15FD.

82  Section 6

Insert:

site closing certificate means a certificate issued under section 249CZGA.

83  Section 6

Insert:

site plan, in relation to an identified greenhouse gas storage formation, has the meaning given by section 15E.

83A  Section 6

Insert:

spatial extent of an eligible greenhouse gas storage formation has the meaning given by subsection 15B(3).

84  Section 6

Insert:

special greenhouse gas holding lease means a greenhouse gas holding lease granted under section 249BSC.

85  Section 6 (definition of tank station)

Repeal the definition, substitute:

tank station means:

                     (a)  a greenhouse gas tank station; or

                     (b)  a petroleum tank station.

86  Section 6 (definition of term)

Repeal the definition, substitute:

term:

                     (a)  when used in relation to an exploration permit, retention lease, production licence, infrastructure licence, pipeline licence, special prospecting authority or access authority—has the meaning given by subsection 9(1); or

                     (b)  when used in relation to a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority—has the meaning given by subsection 9(2).

87  Section 6

Insert:

terminal point has the meaning given by section 14A.

87A  Section 6

Insert:

tied, in relation to a greenhouse gas holding lease or greenhouse gas injection licence, has the meaning given by section 11A.

88  Section 6 (after paragraph (e) of the definition of title)

Insert:

                    (ea)  when used in section 249NH—has the meaning given by subsection 249NH(6); or

89  Section 6 (paragraph (h) of the definition of title)

Repeal the paragraph, substitute:

                     (h)  when used in Chapter 3A—has the meaning given by section 298‑251; or

                      (i)  when used in section 316‑305—has the meaning given by subsection 316‑305(1).

90  Section 6 (definition of valve station)

Repeal the definition, substitute:

valve station means:

                     (a)  a greenhouse gas valve station; or

                     (b)  a petroleum valve station.

91  Section 6 (at the end of the definition of water line)

Add:

               ; or (c)  exploration for potential greenhouse gas storage formations; or

                     (d)  exploration for potential greenhouse gas injection sites; or

                     (e)  the injection of a greenhouse gas substance into an identified greenhouse gas storage formation; or

                      (f)  the injection, on an appraisal basis, of a greenhouse gas substance into a part of a geological formation; or

                     (g)  the injection, on an appraisal basis, of air, petroleum or water into a part of a geological formation.

92  Section 6 (at the end of paragraph (b) of the definition of well)

Add “or”.

93  Section 6 (after paragraph (b) of the definition of well)

Insert:

                     (c)  exploration for potential greenhouse gas storage formations; or

                     (d)  exploration for potential greenhouse gas injection sites; or

                     (e)  the injection of a greenhouse gas substance into an identified greenhouse gas storage formation; or

                      (f)  the injection, on an appraisal basis, of a greenhouse gas substance into a part of a geological formation; or

                     (g)  the injection, on an appraisal basis, of air, petroleum or water into a part of a geological formation;

94  Section 6

Insert:

work‑bid greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Division 2 of Part 2A.2.

95  Section 9

Before “For”, insert “(1)”.

Note:       The following heading to subsection 9(1) is inserted “Petroleum titles”.

96  At the end of section 9

Add:

Greenhouse gas titles

             (2)  For the purposes of this Act, the table has effect:

 

Term of title etc.

Item

A reference in this Act to...

is a reference to...

1

the term of:

(a) a greenhouse gas assessment permit; or

(b) a greenhouse gas holding lease; or

(c) a greenhouse gas injection licence; or

(d) a greenhouse gas search authority; or

(e) a greenhouse gas special authority;

the period during which the permit, lease, licence or authority remains in force.

2

a year of the term of:

(a) a greenhouse gas assessment permit; or

(b) a greenhouse gas holding lease; or

(c) a greenhouse gas injection licence;

a period of one year beginning on:

(a) the day on which the permit, lease or licence comes into force; or

(b) any anniversary of that day.

3

the expiry date of:

(a) a greenhouse gas assessment permit; or

(b) a greenhouse gas holding lease (other than a special greenhouse gas holding lease);

the day on which the permit or lease ceases to be in force.

97  Section 10

Before “For”, insert “(1)”.

Note:       The following heading to subsection 10(1) is inserted “Petroleum titles”.

98  At the end of section 10

Add:

Greenhouse gas titles

             (2)  For the purposes of this Act, the table has effect:

 

Renewal of title

 

Column 1

Column 2

Item

A reference in this Act to...

is a reference to...

1A

the renewal, or the grant of a renewal, of a greenhouse gas assessment permit

the grant of a greenhouse gas assessment permit over all of the blocks in relation to which the permit mentioned in column 1 was in force, to begin on the day after the expiry date of the permit mentioned in column 1.

1

the renewal, or the grant of a renewal, of a greenhouse gas holding lease

the grant of a greenhouse gas holding lease over all of the blocks in relation to which the lease mentioned in column 1 was in force, to begin on the day after the expiry date of the lease mentioned in column 1.

99  Section 11

Before “If”, insert “(1)”.

Note:       The following heading to subsection 11(1) is inserted “Petroleum titles”.

100  At the end of section 11

Add:

Greenhouse gas titles

             (2)  If:

                     (a)  a greenhouse gas assessment permit; or

                     (b)  a greenhouse gas holding lease; or

                     (c)  a greenhouse gas injection licence; or

                     (d)  a greenhouse gas search authority; or

                     (e)  a greenhouse gas special authority;

is varied, a reference in this Act to the permit, lease, licence or authority is a reference to the permit, lease, licence or authority as varied.

100A  After section 11

Insert:

11A  Tied titles

Scope

             (1)  This section applies if a greenhouse gas holding lease (the greenhouse gas lease) is granted under section 249BSI to the registered holder of a retention lease (the petroleum lease).

Tied titles

             (2)  For the purposes of this Act, each of the following:

                     (a)  the greenhouse gas lease;

                     (b)  a greenhouse gas holding lease granted by way of renewal of the greenhouse gas lease;

                     (c)  a greenhouse gas injection licence derived from a lease referred to in paragraph (a) or (b);

is tied to each of the following:

                     (d)  the petroleum lease;

                     (e)  a retention lease granted by way of renewal of the petroleum lease;

                      (f)  a production licence derived from a lease referred to in paragraph (d) or (e).

101  Section 12 (at the end of the table)

Add:

11

a greenhouse gas assessment permit that has expired

the area constituted by the blocks over which the permit was in force but has not been renewed.

12

a greenhouse gas holding lease (other than a special greenhouse gas holding licence) that has expired

the area constituted by the blocks over which the lease was in force but has not been renewed.

13

a greenhouse gas assessment permit that has been cancelled

the permit area.

14

a greenhouse gas holding lease that has been cancelled

the lease area.

15

a greenhouse gas injection licence that has been cancelled

the licence area.

16

a greenhouse gas search authority that:

(a) has been surrendered or cancelled; or

(b) has expired

the authority area.

17

a greenhouse gas special authority that:

(a) has been revoked or surrendered; or

(b) has expired

the authority area.

102  Subsection 13(1)

After “(2)”, insert “or (3)”.

Note:       The heading to subsection 13(2) is replaced by the heading “Petroleum activities”.

103  At the end of section 13

Add:

Greenhouse gas activities

             (3)  This subsection applies to the following activities:

                     (a)  activities preparatory to injecting a greenhouse gas substance into an identified greenhouse gas storage formation (for example, controlling the flow of a greenhouse gas substance into the relevant well);

                     (b)  preparing a greenhouse gas substance for injection into an identified greenhouse gas storage formation (for example, pumping, processing or compressing);

                     (c)  preparing a greenhouse gas substance for transport to another place (for example, pumping or compressing);

                     (d)  storing a greenhouse gas substance before it is:

                              (i)  transported to another place; or

                             (ii)  injected into an identified greenhouse gas storage formation; or

                            (iii)  subjected to any other activity at a facility, structure or installation;

                     (e)  monitoring the behaviour of a greenhouse gas substance stored in an identified greenhouse gas storage formation;

                      (f)  remote control of facilities, structures or installations used to:

                              (i)  inject a greenhouse gas substance into an identified greenhouse gas storage formation; or

                             (ii)  store a greenhouse gas substance in an identified greenhouse gas storage formation; or

                            (iii)  do anything mentioned in any of the above paragraphs;

                     (g)  activities related to any of the above.

             (4)  For the purposes of subsection (3), the injection of a greenhouse gas substance into an identified greenhouse gas storage formation is taken to take place at the top of the relevant well.

104  Paragraphs 14(1)(a), (b) and (c)

After “specified”, insert “petroleum”.

105  At the end of section 14

Add:

             (3)  To avoid doubt, a declaration may be made under subsection (1) whether or not a person has applied for a pipeline licence.

106  After section 14

Insert:

14A  Terminal point

             (1)  The responsible Commonwealth Minister may, by notice published in the Gazette, declare that a specified point on a pipe, or system of pipes, for conveying a greenhouse gas substance is a terminal point for the purposes of this Act.

             (2)  A declaration under subsection (1) has effect accordingly.

             (3)  To avoid doubt, a declaration may be made under subsection (1) whether or not a person has applied for a pipeline licence.

14B  Declared greenhouse gas facility

             (1)  The responsible Commonwealth Minister may, by notice published in the Gazette, declare that a specified facility, structure or installation in a greenhouse gas injection licence area is a declared greenhouse gas facility for the purposes of this Act.

             (2)  A declaration under subsection (1) has effect accordingly.

107  Section 15

Before “For”, insert “(1)”.

Note:       The following heading to subsection 15(1) is inserted “Petroleum”.

108  At the end of section 15

Add:

Potential greenhouse gas storage formation

             (2)  For the purposes of this Act, if:

                     (a)  a person:

                              (i)  carries out a seismic survey, or any other kind of survey, in an offshore area; or

                             (ii)  takes samples of the seabed or subsoil of an offshore area; and

                     (b)  the person does so with the intention that the person or another could use the survey data, or information derived from the samples, as the case may be, for the purpose of discovering one or more potential greenhouse gas storage formations;

the person is taken to explore for those potential greenhouse gas storage formations.

             (3)  For the purposes of this Act, if:

                     (a)  a person has reasonable grounds to suspect that a part of a geological formation could be an eligible greenhouse gas storage formation; and

                     (b)  the person carries out an activity for the purposes of ascertaining either or both of the following:

                              (i)  the spatial extent of the eligible greenhouse gas storage formation;

                             (ii)  any of the fundamental suitability determinants of the eligible greenhouse gas storage formation;

the person is taken to explore for a potential greenhouse gas formation.

Potential greenhouse gas injection site

             (4)  For the purposes of this Act, if:

                     (a)  a person:

                              (i)  carries out a seismic survey, or any other kind of survey, in an offshore area; or

                             (ii)  takes samples of the seabed or subsoil of an offshore area; and

                     (b)  the person does so with the intention that the person or another could use the survey data, or information derived from the samples, as the case may be, for the purpose of discovering one or more potential greenhouse gas injection sites;

the person is taken to explore for those potential greenhouse gas injection sites.

109  After section 15

Insert:

15A  Potential greenhouse gas storage formation

             (1)  For the purposes of this Act, a potential greenhouse gas storage formation is a part of a geological formation, where that part is suitable, with or without engineering enhancements, for the permanent storage of a greenhouse gas substance injected into that part.

             (2)  For the purposes of subsection (1), it is not necessary to identify the greenhouse gas substance.

             (3)  For the purposes of subsection (1), in determining whether a part of a geological formation is suitable, with or without engineering enhancements, for the permanent storage of a greenhouse gas substance injected into that part, regard may be had to reasonably foreseeable technological developments.

15B  Eligible greenhouse gas storage formation

             (1)  For the purposes of this Act, an eligible greenhouse gas storage formation is a part of a geological formation, where that part:

                     (a)  is suitable, without engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period; or

                     (b)  is suitable, with engineering enhancements, for the permanent storage of a particular amount of a particular greenhouse gas substance injected at a particular point or points into that part over a particular period.

             (2)  An amount referred to in paragraph (1)(a) or (b) must be at least 100,000 tonnes.

Spatial extent

             (3)  For the purposes of this Act, the spatial extent of an eligible greenhouse gas storage formation is the expected migration pathway or pathways, over the period:

                     (a)  beginning at the start of the particular period referred to in whichever of paragraph (1)(a) or (b) is applicable; and

                     (b)  ending at the notional site closing certificate time;

of the particular amount of the particular greenhouse gas substance injected as mentioned in whichever of paragraph (1)(a) or (b) is applicable.

          (3A)  In determining the spatial extent of an eligible greenhouse gas storage formation, regard must be had to:

                     (a)  the fundamental suitability determinants; and

                     (b)  such other matters as are relevant.

             (4)  The regulations may provide that the expected migration pathway or pathways are to be ascertained on the basis of:

                     (a)  one or more assumptions (if any) specified in the regulations; and

                     (b)  a level of probability specified in the regulations; and

                     (c)  a methodology (if any) specified in the regulations.

Notional site closing certificate time

             (6)  For the purposes of the application of this section to a part of a geological formation covered by paragraph (1)(a), the notional site closing certificate time is worked out as follows:

                     (a)  assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that paragraph over the particular period referred to in that paragraph;

                     (b)  assume that, throughout that period, that part was an identified greenhouse gas storage formation;

                     (c)  assume that, throughout that period, operations for the injection of the greenhouse gas substance into that part:

                              (i)  were authorised by a greenhouse gas injection licence; and

                             (ii)  complied with the requirements of this Act and the regulations;

                     (d)  assume that, at the end of that period, operations for the injection of the greenhouse gas substance into that part ceased;

                     (e)  estimate the earliest time after the end of that period when the responsible Commonwealth Minister would be in a position to issue a site closing certificate in relation to the identified greenhouse gas storage formation;

                      (f)  that time is the notional site closing certificate time.

             (7)  For the purposes of the application of this section to a part of a geological formation covered by paragraph (1)(b), the notional site closing certificate time is worked out as follows:

                     (a)  assume that the engineering enhancements referred to in that paragraph had been made;

                     (b)  assume that the particular amount of the particular greenhouse gas substance referred to in that paragraph was injected at the particular point or points referred to in that paragraph over the particular period referred to in that paragraph;

                     (c)  assume that, throughout that period, that part was an identified greenhouse gas storage formation;

                     (d)  assume that, throughout that period, operations for the injection of the greenhouse gas substance into that part:

                              (i)  were authorised by a greenhouse gas injection licence; and

                             (ii)  complied with the requirements of this Act and the regulations;

                     (e)  assume that, at the end of that period, operations for the injection of the greenhouse gas substance into that part ceased;

                      (f)  estimate the earliest time after the end of that period when the responsible Commonwealth Minister would be in a position to issue a site closing certificate in relation to the identified greenhouse gas storage formation;

                     (g)  that time is the notional site closing certificate time.

Fundamental suitability determinants

             (8)  For the purposes of this Act, the following are the fundamental suitability determinants of an eligible greenhouse gas storage formation:

                     (a)  the particular amount referred to in whichever of paragraph (1)(a) or (b) is applicable;

                     (b)  the particular greenhouse gas substance referred to in whichever of paragraph (1)(a) or (b) is applicable;

                     (c)  the particular point or points referred to in whichever of paragraph (1)(a) or (b) is applicable;

                     (d)  the particular period referred to in whichever of paragraph (1)(a) or (b) is applicable;

                     (e)  if paragraph (1)(b) is applicable—the engineering enhancements referred to in that paragraph;

                      (f)  the effective sealing feature, attribute or mechanism that enables the permanent storage referred to in whichever of paragraph (1)(a) or (b) is applicable.

15C  Potential greenhouse gas injection site

                   For the purposes of this Act, a potential greenhouse gas injection site is a place that:

                     (a)  is a suitable place to make a well or wells to inject a greenhouse gas substance into a part of a geological formation; and

                     (b)  is wholly situated in one or more offshore areas.

15D  Incidental greenhouse gas‑related substance

Scope

             (1)  This section applies if either or both of the following substances (primary greenhouse gas substances) are captured from a particular source material:

                     (a)  carbon dioxide;

                     (b)  one or more prescribed greenhouse gases.

Incidental greenhouse gas‑related substance

             (2)  For the purposes of this Act, the following are incidental greenhouse gas‑related substances in relation to a primary greenhouse gas substance:

                     (a)  any substance that is incidentally derived from the source material;

                     (b)  any substance that is incidentally derived from the capture;

                     (c)  if the primary greenhouse gas substance, whether in a pure form or in a mixture with other substances, is transported—any substance that is incidentally derived from the transportation;

                     (d)  if the primary greenhouse gas substance, whether in a pure form or in a mixture with other substances, is injected into a part of a geological formation—any substance that is incidentally derived from the injection;

                     (e)  if the primary greenhouse gas substance, whether in a pure form or in a mixture with other substances, is stored in a part of a geological formation—any substance that is incidentally derived from the storage.

15E  Site plan—identified greenhouse gas storage formation

                   For the purposes of this Act, a site plan, in relation to an identified greenhouse gas storage formation, is a document that:

                     (a)  relates to the identified greenhouse gas storage formation; and

                     (b)  complies with such requirements as are specified in the regulations; and

                     (c)  is divided into the following parts:

                              (i)  Part A, which sets out predictions for the behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage formation;

                             (ii)  Part B, which deals with other matters.

15F  Significant risk of a significant adverse impact—approval of key petroleum operations

             (1)  For the purposes of sections 79A, 79B, 114A, 114B, 138A and 138B and paragraph 435B(2)(a), the question of whether there is a significant risk that a key petroleum operation will have a significant adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

is to be determined in a manner ascertained in accordance with the regulations.

             (2)  A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:

                     (a)  the probability, or range of probabilities, of the occurrence of the adverse impact; and

                     (b)  the economic consequences of the adverse impact; and

                     (c)  the economic consequences of the adverse impact relative to the potential economic value of the operations referred to in whichever of paragraph (1)(a) or (b) is applicable.

             (3)  Subsection (2) does not limit the matters that may be taken into account.

             (4)  Subsections (1) and (2) have effect subject to subsections (5) and (6).

             (5)  For the purposes of sections 79A, 79B, 114A, 114B, 138A and 138B and paragraph 435B(2)(a), a key petroleum operation will have an adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

(the relevant greenhouse gas operations) if, and only if, the key petroleum operation will result in:

                     (c)  an increase in the capital costs (other than prescribed costs) of the relevant greenhouse gas operations; or

                     (d)  an increase in the operating costs (other than prescribed costs) of the relevant greenhouse gas operations; or

                     (e)  a reduction in the rate of injection of the greenhouse gas substance; or

                      (f)  a reduction in the quantity of the greenhouse gas substance that will be able to be stored.

             (6)  For the purposes of sections 79A, 79B, 114A, 114B, 138A and 138B and paragraph 435B(2)(a), if there is a risk that a key petroleum operation will have an adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability‑weighted impact cost of the key petroleum operation is less than the amount that, under the regulations, is taken to be the threshold amount.

15FA  Significant risk of a significant adverse impact—grant of production licence

             (1)  For the purposes of sections 145 and 146, the question of whether there is a significant risk that any of the operations that could be carried on under a production licence will have a significant adverse impact on operations that are being, or could be, carried on under:

                     (a)  a greenhouse gas assessment permit; or

                     (b)  a greenhouse gas holding lease; or

                     (c)  a greenhouse gas injection licence;

is to be determined in a manner ascertained in accordance with the regulations.

             (2)  A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:

                     (a)  the probability, or range of probabilities, of the occurrence of the adverse impact; and

                     (b)  the economic consequences of the adverse impact; and

                     (c)  the economic consequences of the adverse impact relative to the potential economic value of the operations that are being, or could be, carried on under the permit, lease or licence referred to in whichever of paragraph (1)(a), (b) or (c) is applicable.

             (3)  Subsection (2) does not limit the matters that may be taken into account.

             (4)  Subsections (1) and (2) have effect subject to subsections (5) and (6).

             (5)  For the purposes of sections 145 and 146, an operation that could be carried on under a production licence (the production licence operation) will have an adverse impact on operations (the relevant greenhouse gas operations) that are being, or could be, carried on under:

                     (a)  a greenhouse gas assessment permit; or

                     (b)  a greenhouse gas holding lease; or

                     (c)  a greenhouse gas injection licence;

if, and only if, the production licence operation will result in:

                     (d)  an increase in the capital costs (other than prescribed costs) of the relevant greenhouse gas operations; or

                     (e)  an increase in the operating costs (other than prescribed costs) of the relevant greenhouse gas operations; or

                      (f)  a reduction in the rate of injection of the greenhouse gas substance; or

                     (g)  a reduction in the quantity of the greenhouse gas substance that will be able to be stored.

             (6)  For the purposes of sections 145 and 146, if there is a risk that an operation that could be carried on under a production licence (the production licence operation) will have an adverse impact on operations that are being, or could be, carried on under:

                     (a)  a greenhouse gas assessment permit; or

                     (b)  a greenhouse gas holding lease; or

                     (c)  a greenhouse gas injection licence;

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability‑weighted impact cost of the production licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.

15FB  Significant risk of a significant adverse impact—approval of key greenhouse gas operations

             (1)  For the purposes of sections 249AF and 249BD and paragraph 435B(2)(b), the question of whether there is a significant risk that a key greenhouse gas operation will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence;

is to be determined in a manner ascertained in accordance with the regulations.

             (2)  A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:

                     (a)  the probability, or range of probabilities, of the occurrence of the adverse impact; and

                     (b)  the economic consequences of the adverse impact; and

                     (c)  the economic consequences of the adverse impact relative to the potential economic value of the petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under the permit, lease or licence referred to in whichever of paragraph (1)(a), (b), (c), (d), (e) or (f) is applicable.

             (3)  Subsection (2) does not limit the matters that may be taken into account.

             (4)  Subsections (1) and (2) have effect subject to subsections (5) and (6).

             (5)  For the purposes of sections 249AF and 249BD and paragraph 435B(2)(b), a key greenhouse gas operation will have an adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence;

if, and only if, the key greenhouse gas operation will result in:

                     (g)  an increase in the capital costs (other than prescribed costs) of the petroleum exploration operations or petroleum recovery operations; or

                     (h)  an increase in the operating costs (other than prescribed costs) of the petroleum exploration operations or petroleum recovery operations; or

                      (i)  a reduction in the rate of recovery of the petroleum; or

                      (j)  a reduction in the quantity of the petroleum that will be able to be recovered.

             (6)  For the purposes of sections 249AF and 249BD and paragraph 435B(2)(b), if there is a risk that a key greenhouse gas operation will have an adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence;

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability‑weighted impact cost of the key greenhouse gas operation is less than the amount that, under the regulations, is taken to be the threshold amount.

15FC  Significant risk of a significant adverse impact—grant of greenhouse gas injection licence

             (1)  For the purposes of sections 249CI and 249CR and paragraph 435B(2)(c), the question of whether there is a significant risk that any of the operations that could be carried on under a greenhouse gas injection licence will have a significant adverse impact on operations that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence;

is to be determined in a manner ascertained in accordance with the regulations.

             (2)  A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:

                     (a)  the probability, or range of probabilities, of the occurrence of the adverse impact; and

                     (b)  the economic consequences of the adverse impact; and

                     (c)  the economic consequences of the adverse impact relative to the potential economic value of the operations that are being, or could be, carried on under the permit, lease or licence referred to in whichever of paragraph (1)(a), (b), (c), (d), (e) or (f) is applicable.

             (3)  Subsection (2) does not limit the matters that may be taken into account.

             (4)  Subsections (1) and (2) have effect subject to subsections (5) and (6).

             (5)  For the purposes of sections 249CI and 249CR and paragraph 435B(2)(c), an operation that could be carried on under a greenhouse gas injection licence (the injection licence operation) will have an adverse impact on operations (the relevant petroleum operations) that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence;

if, and only if, the injection licence operation will result in:

                     (g)  an increase in the capital costs (other than prescribed costs) of the relevant petroleum operations; or

                     (h)  an increase in the operating costs (other than prescribed costs) of the relevant petroleum operations; or

                      (i)  a reduction in the rate of recovery of the petroleum; or

                      (j)  a reduction in the quantity of the petroleum that will be able to be recovered.

             (6)  For the purposes of sections 249CI and 249CR and paragraph 435B(2)(c), if there is a risk that an operation that could be carried on under a greenhouse gas injection licence (the injection licence operation) will have an adverse impact on operations that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence;

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability‑weighted impact cost of the injection licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.

15FD  Significant risk of a significant adverse impact—power of responsible Commonwealth Minister to protect petroleum

             (1)  For the purposes of section 249CZC and paragraph 435B(2)(d), the question of whether there is a significant risk that any of the operations that are being, or could be, carried on under a greenhouse gas injection licence will have a significant adverse impact on:

                     (a)  operations to recover petroleum; or

                     (b)  the commercial viability of the recovery of petroleum;

is to be determined in a manner ascertained in accordance with the regulations.

             (2)  A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account:

                     (a)  the probability, or range of probabilities, of the occurrence of the adverse impact; and

                     (b)  the economic consequences of the adverse impact; and

                     (c)  the economic consequences of the adverse impact relative to the potential economic value of the operations or recovery referred to in whichever of paragraph (1)(a) or (b) is applicable.

             (3)  Subsection (2) does not limit the matters that may be taken into account.

             (4)  Subsections (1) and (2) have effect subject to subsections (5) and (6).

             (5)  For the purposes of section 249CZC and paragraph 435B(2)(d), an operation that could be carried on under a greenhouse gas injection licence (the injection licence operation) will have an adverse impact on:

                     (a)  operations to recover petroleum; or

                     (b)  the commercial viability of the recovery of petroleum;

if, and only if, the injection licence operation will result in:

                     (c)  an increase in the capital costs (other than prescribed costs) of the recovery of the petroleum; or

                     (d)  an increase in the operating costs (other than prescribed costs) of the recovery of the petroleum; or

                     (e)  a reduction in the rate of recovery of the petroleum; or

                      (f)  a reduction in the quantity of the petroleum that will be able to be recovered.

             (6)  For the purposes of section 249CZC and paragraph 435B(2)(d), if there is a risk that an operation that is being, or could be, carried on under a greenhouse gas injection licence (the injection licence operation) will have an adverse impact on:

                     (a)  operations to recover petroleum; or

                     (b)  the commercial viability of the recovery of petroleum;

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability‑weighted impact cost of the injection licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.

15G  Direction given by the responsible Commonwealth Minister

                   A reference in this Act to a direction given by the responsible Commonwealth Minister does not include a reference to a direction given by the responsible Commonwealth Minister:

                     (a)  in his or her capacity as, or as a member of, the Joint Authority for an offshore area; or

                     (b)  in his or her capacity as the Designated Authority for an offshore area.

15H  Securities

Greenhouse gas titles

             (1)  For the purposes of this Act, if:

                     (a)  a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is in force; and

                     (b)  either:

                              (i)  the successful applicant for the permit, lease or licence lodged a security with the responsible Commonwealth Minister in response to the offer document for the permit, lease or licence; or

                             (ii)  the registered holder, or a former registered holder, of the permit, lease or licence lodged a security with the responsible Commonwealth Minister in response to a notice under section 249NCA; and

                     (c)  the security has not been wholly discharged;

the security is taken to be in force in relation to the permit, lease or licence.

Site closing certificate

             (2)  For the purposes of this Act, if:

                     (a)  a site closing certificate is in force; and

                     (b)  the successful applicant for the certificate lodged a security with the responsible Commonwealth Minister in response to the pre‑certificate notice for the site closing certificate; and

                     (c)  the security has not been wholly discharged;

the security is taken to be in force in relation to the site closing certificate.

Note:          For pre‑certificate notice, see section 249CZF.

15J  Designated agreements

                   For the purposes of this Act, a designated agreement is an agreement of the kind referred to in any of the following provisions:

                     (a)  paragraph 79A(5)(f);

                     (b)  paragraph 79A(6)(d);

                     (c)  subsection 79A(10);

                     (d)  paragraph 114A(5)(f);

                     (e)  paragraph 114A(6)(d);

                      (f)  subsection 114A(10);

                     (g)  paragraph 138A(5)(f);

                     (h)  paragraph 138A(6)(d);

                      (i)  subsection 138A(10);

                      (j)  paragraph 249AF(5)(d);

                     (k)  paragraph 249AF(6)(d);

                      (l)  subsection 249AF(11);

                    (m)  subsection 249AF(12);

                     (n)  paragraph 249BD(5)(d);

                     (o)  paragraph 249BD(6)(d);

                     (p)  subsection 249BD(11);

                     (q)  subsection 249BD(12);

                      (r)  subparagraph 249CI(1)(d)(iii);

                      (s)  subparagraph 249CI(1)(e)(iii);

                      (t)  subparagraph 249CI(2)(d)(iii);

                     (u)  subparagraph 249CI(2)(e)(iii);

                     (v)  paragraph 249CI(3)(a);

                    (w)  subparagraph 249CR(d)(v);

                     (x)  paragraph 249CR(e);

                     (y)  paragraph 249CR(f);

                      (z)  paragraph 249CR(g);

                    (za)  paragraph 249CZC(1)(e).

109A  Section 21

Insert:

greenhouse gas title means:

                     (a)  a greenhouse gas assessment permit; or

                     (b)  a greenhouse gas holding lease; or

                     (c)  a greenhouse gas injection licence; or

                     (d)  a greenhouse gas search authority; or

                     (e)  a greenhouse gas special authority.

109B  Section 21

Insert:

petroleum title means:

                     (a)  an exploration permit; or

                     (b)  a retention lease; or

                     (c)  a production licence; or

                     (d)  an infrastructure licence; or

                     (e)  a pipeline licence; or

                      (f)  a special prospecting authority; or

                     (g)  an access authority.

109C  Section 21 (definition of title)

Repeal the definition, substitute:

title means:

                     (a)  a greenhouse gas title; or

                     (b)  a petroleum title.

110  Subparagraph 55(1)(a)(i)

Before “this Act”, insert “Chapter 2, 3 or 5 of”.

111  Subparagraph 55(1)(a)(ii)

Before “the”, insert “section 4 of”.

112  Subparagraph 55(1)(a)(iii)

Before “the”, insert “section 5 or 6 of”.

113  Section 57

Omit:

•      The general body of laws in force in a State or Territory applies, as laws of the Commonwealth, to petroleum exploration, exploitation and conveyance activities in the offshore area of that State or Territory.

substitute:

•      The general body of laws in force in a State or Territory applies, as laws of the Commonwealth, to:

               (a)     petroleum exploration, exploitation and conveyance activities in the offshore area of that State or Territory; and

               (b)     greenhouse gas injection and storage activities in the offshore area of that State or Territory.

114  At the end of subsection 59(4)

Add:

               ; or (c)  exploring the seabed or subsoil of the offshore area for a potential greenhouse gas storage formation or a potential greenhouse gas injection site; or

                     (d)  the injection of a greenhouse gas substance into the seabed or subsoil of the offshore area; or

                     (e)  the storage of a greenhouse gas substance in the seabed or subsoil of the offshore area; or

                      (f)  the conveyance of a greenhouse gas substance across the offshore area.

115  Subparagraph 59(5)(a)(iv)

Omit “and”, substitute “or”.

116  At the end of paragraph 59(5)(a)

Add:

                             (v)  exploring the seabed or subsoil of the offshore area for a potential greenhouse gas storage formation or a potential greenhouse gas injection site; or

                            (vi)  the injection of a greenhouse gas substance into the seabed or subsoil of the offshore area; or

                           (vii)  the storage of a greenhouse gas substance in the seabed or subsoil of the offshore area; or

                           (viii)  the conveyance of a greenhouse gas substance across the offshore area; and

117  Section 75

Omit:

•      An infrastructure licence authorises the licensee to construct and operate an infrastructure facility in the licence area.

•      A pipeline licence authorises the licensee to construct and operate a pipeline.

substitute:

•      An infrastructure licence authorises the licensee to construct and operate an infrastructure facility in the licence area. An infrastructure facility may relate to petroleum or a greenhouse gas substance.

•      A pipeline licence authorises the licensee to construct and operate a pipeline. A pipeline may be used to convey petroleum or a greenhouse gas substance.

117A  After subsection 78(1)

Insert:

          (1A)  Express references in this Act to the injection or storage of a substance do not imply that subsection (1) does not operate so as to authorise the permittee:

                     (a)  to carry on operations to inject a substance into the seabed or subsoil of an offshore area; or

                     (b)  to carry on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area.

          (1B)  The regulations may provide that an exploration permit authorises the permittee, in accordance with the conditions (if any) to which the permit is subject:

                     (a)  to explore in the permit area for a potential greenhouse gas storage formation; and

                     (b)  to explore in the permit area for a potential greenhouse gas injection site; and

                     (c)  to carry on such operations, and execute such works, in the permit area as are necessary for those purposes.

117B  Subsection 78(2)

Omit “subsection (1)”, substitute “or under subsection (1) or (1B)”.

118  At the end of subsection 79(6)

Add “or (10)”.

119  At the end of section 79

Add:

Declared exploration permits—approval of key petroleum operations

             (8)  A declared exploration permit is subject to the condition that the permittee will not carry on key petroleum operations under the permit unless the responsible Commonwealth Minister has approved the operations under section 79A.

             (9)  Despite subsection (2), the condition mentioned in subsection (8) does not need to be specified in the permit.

           (10)  If, under section 79A, the responsible Commonwealth Minister approves the carrying on of one or more key petroleum operations under a declared exploration permit, the responsible Commonwealth Minister may, by written notice given to the permittee, vary the permit by imposing one or more conditions to which the permit is subject.

           (11)  A variation of a declared exploration permit under subsection (10) takes effect on the day on which notice of the variation is given to the permittee.

           (12)  A condition imposed under subsection (10) may require the permittee to ensure that:

                     (a)  all wells; or

                     (b)  one or more specified wells;

made in the permit area by any person engaged or concerned in operations authorised by the permit are made in a manner, and to a standard, that will facilitate the plugging or closing off of the wells in a way that restores or maintains the suitability of a part of a geological formation for the permanent storage of greenhouse gas substances.

           (13)  Subsection (12) does not limit:

                     (a)  subsection (10); or

                     (b)  Part 4.2; or

                     (c)  Part 4.3.

           (14)  If:

                     (a)  a declared exploration permit is subject to a condition; and

                     (b)  the condition was imposed under subsection (10);

the responsible Commonwealth Minister may, by written notice given to the permittee, vary or revoke the condition.

           (15)  A variation of a declared exploration permit under subsection (14) takes effect on the day on which notice of the variation is given to the permittee.

           (16)  Subsection (14) does not limit section 227.

120  After section 79

Insert:

79A  Declared exploration permit—approval by responsible Commonwealth Minister of key petroleum operations

             (1)  The registered holder of a declared exploration permit may apply to the responsible Commonwealth Minister for approval to carry on one or more key petroleum operations under the permit.

             (2)  If an application for approval is made under subsection (1), the responsible Commonwealth Minister may:

                     (a)  give the approval; or

                     (b)  by written notice given to the applicant, refuse to give the approval.

Responsible Commonwealth Minister must have regard to certain matters

             (3)  In deciding whether to give the approval, the responsible Commonwealth Minister must comply with subsections (4), (5), (6) and (7).

             (4)  The responsible Commonwealth Minister must have regard to the impact (if any) that any of those key petroleum operations could have on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under:

                     (c)  an existing greenhouse gas assessment permit; or

                     (d)  an existing greenhouse gas holding lease; or

                     (e)  an existing greenhouse gas injection licence; or

                      (f)  if a greenhouse gas assessment permit or a greenhouse gas holding lease is in force over a block or blocks:

                              (i)  a future greenhouse gas holding lease over the block or any of the blocks; or

                             (ii)  a future greenhouse gas injection licence over the block or any of the blocks.

             (5)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under:

                     (c)  an existing greenhouse gas assessment permit held by a person other than the applicant; or

                     (d)  an existing greenhouse gas holding lease held by a person other than the applicant; or

                     (e)  an existing greenhouse gas injection licence held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                      (f)  whether the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence, as the case may be, has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (g)  if so—the terms of that agreement.

             (6)  If:

                     (a)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that could be carried on under:

                            (iii)  a future greenhouse gas holding lease over a block or blocks; or

                            (iv)  a future greenhouse gas injection licence over a block or blocks; and

                     (b)  a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is in force over the block or any of the blocks; and

                     (c)  the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                     (d)  whether the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence covered by paragraph (b) has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (e)  if so—the terms of that agreement.

             (7)  The responsible Commonwealth Minister must have regard to the public interest.

             (8)  Subsections (4), (5) and (6) do not limit subsection (7).

             (9)  Subsections (4), (5), (6) and (7) do not limit the matters to which the responsible Commonwealth Minister may have regard.

Responsible Commonwealth Minister must not give approval in certain circumstances

           (10)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under an existing greenhouse gas injection licence, the responsible Commonwealth Minister must not give the approval unless the registered holder of the greenhouse gas injection licence has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied.

No right to an approval

           (11)  To avoid doubt, section 78 does not imply that an exploration permittee who applies for approval under subsection (1) of this section is entitled to be given the approval.

Suspension of rights

           (12)  For the purposes of this section, disregard a suspension of rights under section 249KC.

79B  Declared exploration permits

             (1)  If:

                     (a)  a post‑commencement exploration permit is in force; and

                     (b)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the key petroleum operations that could be carried on under the permit will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that are being, or could be, carried on under:

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                           (viii)  a future greenhouse gas injection licence;

the responsible Commonwealth Minister may, by written notice given to the exploration permittee, determine that the exploration permit is a declared exploration permit for the purposes of this Act.

             (2)  If:

                     (a)  a determination is in force under subsection (1) in relation to a post‑commencement exploration permit; and

                     (b)  the responsible Commonwealth Minister is not satisfied that there is a significant risk that any of the key petroleum operations that could be carried on under the permit will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that are being, or could be, carried on under:

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                           (viii)  a future greenhouse gas injection licence;

the responsible Commonwealth Minister must, by written notice given to the exploration permittee, revoke the determination.

120A  After subsection 113(1)

Insert:

          (1A)  Express references in this Act to the injection or storage of a substance do not imply that subsection (1) does not operate so as to authorise the lessee:

                     (a)  to carry on operations to inject a substance into the seabed or subsoil of an offshore area; or

                     (b)  to carry on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area.

          (1B)  The regulations may provide that a retention lease authorises the lessee, in accordance with the conditions (if any) to which the lease is subject:

                     (a)  to explore in the lease area for a potential greenhouse gas storage formation; and

                     (b)  to explore in the lease area for a potential greenhouse gas injection site; and

                     (c)  to carry on such operations, and execute such works, in the lease area as are necessary for those purposes.

120B  Subsection 113(2)

Omit “subsection (1)”, substitute “or under subsection (1) or (1B)”.

121  At the end of subsection 114(10)

Add “or (13)”.

122  At the end of section 114

Add:

Declared retention leases—approval of key petroleum operations

           (11)  A declared retention lease is subject to the condition that the lessee will not carry on key petroleum operations under the lease unless the responsible Commonwealth Minister has approved the operations under section 114A.

           (12)  Despite subsection (2), the condition mentioned in subsection (11) does not need to be specified in the lease.

           (13)  If, under section 114A, the responsible Commonwealth Minister approves the carrying on of one or more key petroleum operations under a declared retention lease, the responsible Commonwealth Minister may, by written notice given to the lessee, vary the lease by imposing one or more conditions to which the lease is subject.

           (14)  A variation of a declared retention lease under subsection (13) takes effect on the day on which notice of the variation is given to the lessee.

           (15)  A condition imposed under subsection (13) may require the lessee to ensure that:

                     (a)  all wells; or

                     (b)  one or more specified wells;

made in the lease area by any person engaged or concerned in operations authorised by the lease are made in a manner, and to a standard, that will facilitate the plugging or closing off of the wells in a way that restores or maintains the suitability of a part of a geological formation for the permanent storage of greenhouse gas substances.

           (16)  Subsection (15) does not limit:

                     (a)  subsection (13); or

                     (b)  Part 4.2; or

                     (c)  Part 4.3.

           (17)  If:

                     (a)  a declared retention lease is subject to a condition; and

                     (b)  the condition was imposed under subsection (13);

the responsible Commonwealth Minister may, by written notice given to the lessee, vary or revoke the condition.

           (18)  A variation of a declared retention lease under subsection (17) takes effect on the day on which notice of the variation is given to the lessee.

           (19)  Subsection (18) does not limit section 227.

123  After section 114

Insert:

114A  Declared retention lease—approval by responsible Commonwealth Minister of key petroleum operations

             (1)  The registered holder of a declared retention lease may apply to the responsible Commonwealth Minister for approval to carry on one or more key petroleum operations under the lease.

             (2)  If an application for approval is made under subsection (1), the responsible Commonwealth Minister may:

                     (a)  give the approval; or

                     (b)  by written notice given to the applicant, refuse to give the approval.

Responsible Commonwealth Minister must have regard to certain matters

             (3)  In deciding whether to give the approval, the responsible Commonwealth Minister must comply with subsections (4), (5), (6) and (7).

             (4)  The responsible Commonwealth Minister must have regard to the impact (if any) that any of those key petroleum operations could have on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under:

                     (c)  an existing greenhouse gas assessment permit; or

                     (d)  an existing greenhouse gas holding lease; or

                     (e)  an existing greenhouse gas injection licence; or

                      (f)  if a greenhouse gas assessment permit or a greenhouse gas holding lease is in force over a block or blocks:

                              (i)  a future greenhouse gas holding lease over the block or any of the blocks; or

                             (ii)  a future greenhouse gas injection licence over the block or any of the blocks.

             (5)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under:

                     (c)  an existing greenhouse gas assessment permit held by a person other than the applicant; or

                     (d)  an existing greenhouse gas holding lease held by a person other than the applicant; or

                     (e)  an existing greenhouse gas injection licence held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                      (f)  whether the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence, as the case may be, has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (g)  if so—the terms of that agreement.

             (6)  If:

                     (a)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that could be carried on under:

                            (iii)  a future greenhouse gas holding lease over a block or blocks; or

                            (iv)  a future greenhouse gas injection licence over a block or blocks; and

                     (b)  a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is in force over the block or any of the blocks; and

                     (c)  the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                     (d)  whether the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence covered by paragraph (b) has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (e)  if so—the terms of that agreement.

             (7)  The responsible Commonwealth Minister must have regard to the public interest.

             (8)  Subsections (4), (5) and (6) do not limit subsection (7).

             (9)  Subsections (4), (5), (6) and (7) do not limit the matters to which the responsible Commonwealth Minister may have regard.

Responsible Commonwealth Minister must not give approval in certain circumstances

           (10)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under an existing greenhouse gas injection licence, the responsible Commonwealth Minister must not give the approval unless the registered holder of the greenhouse gas injection licence has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied.

No right to an approval

           (11)  To avoid doubt, section 113 does not imply that a retention lessee who applies for approval under subsection (1) of this section is entitled to be given the approval.

Suspension of rights

           (12)  For the purposes of this section, disregard a suspension of rights under section 249KC.

114B  Declared retention leases

             (1)  If:

                     (a)  a post‑commencement retention lease is in force; and

                     (b)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the key petroleum operations that could be carried on under the lease will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that are being, or could be, carried on under:

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                           (viii)  a future greenhouse gas injection licence;

the responsible Commonwealth Minister must, by written notice given to the retention lessee, determine that the retention lease is a declared retention lease for the purposes of this Act.

             (2)  If:

                     (a)  a determination is in force under subsection (1) in relation to a post‑commencement retention lease; and

                     (b)  the responsible Commonwealth Minister is not satisfied that there is a significant risk that any of the key petroleum operations that could be carried on under the lease will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that are being, or could be, carried on under:

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                           (viii)  a future greenhouse gas injection licence;

the responsible Commonwealth Minister must, by written notice given to the retention lessee, revoke the determination.

125  After subsection 137(1)

Insert:

          (1A)  Express references in this Act to the injection or storage of a substance do not imply that subsection (1) does not operate so as to authorise the licensee:

                     (a)  to carry on operations to inject a substance into the seabed or subsoil of an offshore area; or

                     (b)  to carry on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area.

          (1B)  The regulations may provide that a production licence authorises the licensee, in accordance with the conditions (if any) to which the licence is subject:

                     (a)  to explore in the licence area for a potential greenhouse gas storage formation; and

                     (b)  to explore in the licence area for a potential greenhouse gas injection site; and

                     (c)  to carry on such operations, and execute such works, in the licence area as are necessary for those purposes.

          (1C)  The regulations may provide that, if:

                     (a)  petroleum is recovered in the licence area of a production licence (the first licence); and

                     (b)  operations for the recovery or processing of the petroleum are carried on using a facility located in the licence area of another production licence (the second licence); and

                     (c)  a prescribed substance (which may be a hydrocarbon) is recovered as an incidental consequence of the recovery of the petroleum;

the second licence authorises the licensee of the second licence, in accordance with the conditions (if any) to which the second licence is subject:

                     (d)  to inject the substance into the seabed or subsoil of the licence area of the second licence; and

                     (e)  to store (whether on a permanent basis or otherwise) the substance in the seabed or subsoil of the licence area of the second licence; and

                      (f)  to carry on such operations, and execute such works, in the licence area of the second licence as are necessary for those purposes.

          (1D)  Subsections (1B) and (1C) do not limit subsection (1).

125A  Subsection 137(2)

Omit “subsection (1)”, substitute “or under subsection (1), (1B) or (1C)”.

126  At the end of subsection 138(6)

Add “or (12)”.

127  At the end of section 138

Add:

Declared production licences—approval of key petroleum operations

           (10)  A declared production licence is subject to the condition that the licensee will not carry on key petroleum operations under the licence unless the responsible Commonwealth Minister has approved the operations under section 138A.

           (11)  Despite subsection (2), the condition mentioned in subsection (10) does not need to be specified in the licence.

           (12)  If, under section 138A, the responsible Commonwealth Minister approves the carrying on of one or more key petroleum operations under a declared production licence, the responsible Commonwealth Minister may, by written notice given to the licensee, vary the licence by imposing one or more conditions to which the licence is subject.

           (13)  A variation of a declared production licence under subsection (12) takes effect on the day on which notice of the variation is given to the licensee.

           (14)  A condition imposed under subsection (12) may require the licensee to ensure that:

                     (a)  all wells; or

                     (b)  one or more specified wells;

made in the licence area by any person engaged or concerned in operations authorised by the licence are made in a manner, and to a standard, that will facilitate the plugging or closing off of the wells in a way that restores or maintains the suitability of a part of a geological formation for the permanent storage of greenhouse gas substances.

           (15)  Subsection (14) does not limit:

                     (a)  subsection (12); or

                     (b)  Part 4.2; or

                     (c)  Part 4.3.

           (16)  If:

                     (a)  a declared production licence is subject to a condition; and

                     (b)  the condition was imposed under subsection (12);

the responsible Commonwealth Minister may, by written notice given to the licensee, vary or revoke the condition.

           (17)  A variation of a declared production licence under subsection (16) takes effect on the day on which notice of the variation is given to the licensee.

           (18)  Subsection (17) does not limit section 227.

128  After section 138

Insert:

138A  Declared production licence—approval by responsible Commonwealth Minister of key petroleum operations

             (1)  The registered holder of a declared production licence may apply to the responsible Commonwealth Minister for approval to carry on one or more key petroleum operations under the licence.

             (2)  If an application for approval is made under subsection (1), the responsible Commonwealth Minister may:

                     (a)  give the approval; or

                     (b)  by written notice given to the applicant, refuse to give the approval.

Responsible Commonwealth Minister must have regard to certain matters

             (3)  In deciding whether to give the approval, the responsible Commonwealth Minister must comply with subsections (4), (5), (6) and (7).

             (4)  The responsible Commonwealth Minister must have regard to the impact (if any) that any of those key petroleum operations could have on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under:

                     (c)  an existing greenhouse gas assessment permit; or

                     (d)  an existing greenhouse gas holding lease; or

                     (e)  an existing greenhouse gas injection licence; or

                      (f)  if a greenhouse gas assessment permit or a greenhouse gas holding lease is in force over a block or blocks:

                              (i)  a future greenhouse gas holding lease over the block or any of the blocks; or

                             (ii)  a future greenhouse gas injection licence over the block or any of the blocks.

             (5)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under:

                     (c)  an existing greenhouse gas assessment permit held by a person other than the applicant; or

                     (d)  an existing greenhouse gas holding lease held by a person other than the applicant; or

                     (e)  an existing greenhouse gas injection licence held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                      (f)  whether the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence, as the case may be, has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (g)  if so—the terms of that agreement.

             (6)  If:

                     (a)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that could be carried on under:

                            (iii)  a future greenhouse gas holding lease over a block or blocks; or

                            (iv)  a future greenhouse gas injection licence over a block or blocks; and

                     (b)  a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is in force over the block or any of the blocks; and

                     (c)  the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence is held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                     (d)  whether the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence covered by paragraph (b) has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (e)  if so—the terms of that agreement.

             (7)  The responsible Commonwealth Minister must have regard to the public interest.

             (8)  Subsections (4), (5) and (6) do not limit subsection (7).

             (9)  Subsections (4), (5), (6) and (7) do not limit the matters to which the responsible Commonwealth Minister may have regard.

Responsible Commonwealth Minister must not give approval in certain circumstances

           (10)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key petroleum operations will have a significant adverse impact on:

                     (a)  operations for the injection of a greenhouse gas substance; or

                     (b)  operations for the storage of a greenhouse gas substance;

that are being, or could be, carried on under an existing greenhouse gas injection licence, the responsible Commonwealth Minister must not give the approval unless the registered holder of the greenhouse gas injection licence has agreed, in writing, to the applicant carrying on the key petroleum operations in respect of which the responsible Commonwealth Minister is so satisfied.

No right to an approval

           (11)  To avoid doubt, section 137 does not imply that a production licensee who applies for approval under subsection (1) of this section is entitled to be given the approval.

Suspension of rights

           (12)  For the purposes of this section, disregard a suspension of rights under section 249KC.

138B  Declared production licences

             (1)  If:

                     (a)  a post‑commencement production licence is in force; and

                     (b)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the key petroleum operations that could be carried on under the licence will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that are being, or could be, carried on under:

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                           (viii)  a future greenhouse gas injection licence;

the responsible Commonwealth Minister must, by written notice given to the production licensee, determine that the production licence is a declared production licence for the purposes of this Act.

             (2)  If:

                     (a)  a determination is in force under subsection (1) in relation to a post‑commencement production licence; and

                     (b)  the responsible Commonwealth Minister is not satisfied that there is a significant risk that any of the key petroleum operations that could be carried on under the licence will have a significant adverse impact on:

                              (i)  operations for the injection of a greenhouse gas substance; or

                             (ii)  operations for the storage of a greenhouse gas substance;

                            that are being, or could be, carried on under:

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                           (viii)  a future greenhouse gas injection licence;

the responsible Commonwealth Minister must, by written notice given to the production licensee, revoke the determination.

128A  Section 139 (note 8)

Omit “249”, substitute “442D”.

128B  Subsection 140(4) (note)

Omit “249”, substitute “442D”.

129  Section 145

Before “If:”, insert “(1)”.

130  At the end of paragraph 145(c)

Add “and”.

131  After paragraph 145(c)

Insert:

                     (d)  in a case where (assuming that the applicant were granted a production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph (b)) the production licence would be a post‑commencement production licence, and:

                              (i)  the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the production licence will have a significant adverse impact on operations that are being, or could be, carried on under a greenhouse gas assessment permit or a greenhouse gas holding lease; or

                             (ii)  if one or more identified greenhouse gas storage formations are wholly situated in the permit area of a greenhouse gas assessment permit or the lease area of a greenhouse gas holding lease—the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the production licence will have a significant adverse impact on operations that could be carried on under a future greenhouse gas injection licence, where the identified greenhouse gas storage formation, or any of the identified greenhouse gas storage formations, is wholly situated in the licence area of the future greenhouse gas injection licence;

                            the Joint Authority is satisfied that it is in the public interest for the production licence to be granted to the applicant; and

                     (e)  in a case where:

                              (i)  (assuming that the applicant were granted a production licence over the block or blocks as to which the Joint Authority is so satisfied as mentioned in paragraph (b)) the production licence would be a post‑commencement production licence; and

                             (ii)  the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the production licence will have a significant adverse impact on operations that are being, or could be, carried on under a greenhouse gas injection licence;

                            the Joint Authority is satisfied that:

                            (iii)  the registered holder of the greenhouse gas injection licence has agreed, in writing, to the grant of the production licence; and

                            (iv)  to the extent to which the agreement is a dealing to which Part 3A.6 applies—the dealing has been approved under section 298‑275 or is reasonably likely to be approved under that section; and

                             (v)  to the extent to which the agreement is a dealing to which Part 3.6 would apply if the production licence were to come into existence—it is reasonably likely that the dealing would, after the production licence comes into existence, be approved under section 275;

132  Section 145

After “so satisfied”, insert “as mentioned in paragraph (b)”.

133  At the end of section 145

Add:

Public interest

             (2)  For the purposes of paragraph (1)(d), in considering whether the grant of the production licence is in the public interest, the Joint Authority must have regard to:

                     (a)  whether the registered holder of the greenhouse gas assessment permit or greenhouse gas holding lease, as the case may be, has agreed, in writing, to the grant of the production licence; and

                     (b)  if so—the terms of that agreement.

             (3)  Subsection (2) does not limit the matters to which the Joint Authority may have regard.

Deferral of decision

             (4)  This section has effect subject to section 146A.

134  After subsection 146(4A)

Insert:

Impact on greenhouse gas titles

          (4B)  If:

                     (a)  (assuming that the applicant were granted a production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph 145(1)(b)) the production licence would be a post‑commencement production licence; and

                     (b)  either:

                              (i)  the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the production licence will have a significant adverse impact on operations that are being, or could be, carried on under a greenhouse gas assessment permit or a greenhouse gas holding lease; or

                             (ii)  if one or more identified greenhouse gas storage formations are wholly situated in the permit area of a greenhouse gas assessment permit or the lease area of a greenhouse gas holding lease—the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the production licence will have a significant adverse impact on operations that could be carried on under a future greenhouse gas injection licence, where the identified greenhouse gas storage formation, or any of the identified greenhouse gas storage formations, is wholly situated in the licence area of the future greenhouse gas injection licence; and

                     (c)  the Joint Authority is not satisfied that it is in the public interest for the production licence to be granted to the applicant;

the Joint Authority must, by written notice given to the applicant, refuse to grant a production licence to the applicant.

          (4C)  If:

                     (a)  (assuming that the applicant were granted a production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph 145(1)(b)) the production licence would be a post‑commencement production licence; and

                     (b)  the Joint Authority is satisfied that there is a significant risk that any of the operations that could be carried on under the production licence will have a significant adverse impact on operations that are being, or could be, carried on under a greenhouse gas injection licence; and

                     (c)  the Joint Authority is not satisfied that:

                              (i)  the registered holder of the greenhouse gas injection licence has agreed, in writing, to the grant of the production licence; and

                             (ii)  to the extent to which the agreement is a dealing to which Part 3A.6 applies—the dealing has been approved under section 298‑275 or is reasonably likely to be approved under that section; and

                            (iii)  to the extent to which the agreement is a dealing to which Part 3.6 would apply if the production licence were to come into existence—it is reasonably likely that the dealing would, after the production licence comes into existence, be approved under section 275;

the Joint Authority must, by written notice given to the applicant, refuse to grant a production licence to the applicant.

135  At the end of section 146

Add:

Public interest

             (6)  For the purposes of paragraph (4B)(c), in considering whether the grant of the production licence is in the public interest, the Joint Authority must have regard to:

                     (a)  whether the registered holder of the greenhouse gas assessment permit or greenhouse gas holding lease, as the case may be, has agreed, in writing, to the grant of the production licence; and

                     (b)  if so—the terms of that agreement.

             (7)  Subsection (6) does not limit the matters to which the Joint Authority may have regard.

Deferral of application

             (8)  This section has effect subject to section 146A.

136  After section 146

Insert:

146A  Joint Authority may defer taking action on application for production licence if there is a pending application for a greenhouse gas assessment permit

Scope

             (1)  This section applies if:

                     (a)  an application for the grant of a production licence has been made under:

                              (i)  section 142 or 144; or

                             (ii)  clause 2 or 4 of Schedule 4; and

                     (b)  assuming that the applicant were granted a production licence over the block or blocks as to which the Joint Authority is so satisfied as mentioned in paragraph 145(1)(b), the production licence would be a post‑commencement production licence; and

                     (c)  when the application for the grant of the production licence was made, an application for a greenhouse gas assessment permit was being considered by the responsible Commonwealth Minister; and

                     (d)  the Joint Authority is satisfied that it would be in the public interest to defer taking any action under section 145 or 146 in relation to the application for the grant of the production licence until the application for the greenhouse gas assessment permit is finalised.

Deferral

             (2)  The Joint Authority must not take any action under section 145 or 146 in relation to the application for the grant of the production licence until 24 hours after whichever of the following events happens first:

                     (a)  the responsible Commonwealth Minister grants a greenhouse gas assessment permit to the applicant for the permit;

                     (b)  the application for the greenhouse gas assessment permit lapses;

                     (c)  the responsible Commonwealth Minister refuses to grant a greenhouse gas assessment permit to the applicant for the permit.

137  Section 147

Omit “in section 145”, substitute “in paragraph 145(1)(b)”.

138  Section 164

Omit:

•      An infrastructure licence authorises the licensee to construct and operate an infrastructure facility in the licence area.

substitute:

•      An infrastructure licence authorises the licensee to construct and operate an infrastructure facility in the licence area. An infrastructure facility may relate to petroleum or a greenhouse gas substance.

138A  Paragraphs 166(1)(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  in the case of an infrastructure licence granted before the commencement of this section:

                              (i)  to construct infrastructure facilities in the licence area; and

                             (ii)  to operate infrastructure facilities in the licence area;

                            so long as those facilities are for engaging in:

                            (iii)  a subsection 13(2) activity; or

                            (iv)  a subsection 13(3) activity specified in the licence as the result of a variation under section 176; or

                     (b)  in the case of an infrastructure licence granted after the commencement of this section:

                              (i)  to construct infrastructure facilities in the licence area; and

                             (ii)  to operate infrastructure facilities in the licence area;

                            so long as those facilities are for engaging in:

                            (iii)  a subsection 13(2) activity specified in the licence; or

                            (iv)  a subsection 13(3) activity specified in the licence.

138B  At the end of section 167

Add:

             (3)  An infrastructure licence is subject to the condition that, if:

                     (a)  regulations are made for the purpose of subsection (4); and

                     (b)  those regulations impose requirements on the licensee;

the licensee will comply with those requirements.

             (4)  The regulations may establish a regime for third party access to services provided by means of the use of an infrastructure facility that is for engaging in any of the activities to which subsection 13(3) applies.

Note:          Subsection 13(3) applies to certain greenhouse gas activities.

             (5)  Despite subsection (2), the condition mentioned in subsection (3) does not need to be specified in the licence.

138C  Subsection 169(4) (note)

Omit “249”, substitute “442D”.

139  Section 171 (note 3)

Omit “section 174”, substitute “sections 174 and 174A”.

Note:       The heading to section 174 is altered by inserting “with petroleum titleholders” after “Consultation”.

140  At the end of Division 2 of Part 2.5

Add:

174A  Consultation with greenhouse gas titleholders—grant of infrastructure licence

Scope

             (1)  This section applies if:

                     (a)  an application for an infrastructure licence (the proposed infrastructure licence) has been made under section 170 in relation to a place in a block; and

                     (b)  the block:

                              (i)  is the subject of a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence; or

                             (ii)  is the subject of a greenhouse gas search authority or greenhouse gas special authority; and

                     (c)  the applicant is not the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority; and

                     (d)  if subparagraph (b)(i) applies—the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence has not given written consent to the grant of the proposed infrastructure licence; and

                     (e)  if subparagraph (b)(ii) applies:

                              (i)  the registered holder of the greenhouse gas search authority or greenhouse gas special authority has not given written consent to the grant of the proposed infrastructure licence; or

                             (ii)  the greenhouse gas search authority or greenhouse gas special authority will not expire before any construction or operation of infrastructure facilities under the proposed infrastructure licence would occur.

Consultation

             (2)  Before the Joint Authority gives the applicant an offer document under section 171, the Joint Authority must:

                     (a)  by written notice given to the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority, give at least 30 days notice of the Joint Authority’s proposal to give the applicant the offer document; and

                     (b)  give a copy of the notice to such other persons (if any) as the Joint Authority thinks fit.

             (3)  The notice must:

                     (a)  set out details of the proposed infrastructure licence; and

                     (b)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the Joint Authority about the proposal; and

                     (c)  specify a time limit for the making of that submission.

Note:          All communications to the Joint Authority are to be made through the Designated Authority—see section 45.

             (4)  In deciding:

                     (a)  whether to give the applicant the offer document; and

                     (b)  the conditions (if any) to which the proposed infrastructure licence should be subject;

the Joint Authority must take into account any submissions made in accordance with the notice.

141  Subsection 176(1) (note)

Omit “section 177”, substitute “sections 177 and 177A”.

Note:       The heading to section 177 is altered by inserting “with petroleum titleholders” after “Consultation”.

142  At the end of Division 3 of Part 2.5

Add:

177A  Consultation with greenhouse gas titleholders—variation of infrastructure licence

Scope

             (1)  This section applies if:

                     (a)  an infrastructure licence (the first infrastructure licence) relates to a place in a block; and

                     (b)  an application for variation of the first infrastructure licence is made under section 175; and

                     (c)  the block:

                              (i)  is the subject of a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence; or

                             (ii)  is the subject of a greenhouse gas search authority or greenhouse gas special authority; and

                     (d)  the applicant is not the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority; and

                     (e)  if subparagraph (c)(i) applies—the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence has not given written consent to the variation of the first infrastructure licence; and

                      (f)  if subparagraph (c)(ii) applies:

                              (i)  the registered holder of the greenhouse gas search authority or greenhouse gas special authority has not given written consent to the variation of the first infrastructure licence; or

                             (ii)  the greenhouse gas search authority or greenhouse gas special authority will not expire before any construction or operation of infrastructure facilities under the first infrastructure licence, as proposed to be varied, would occur.

Consultation

             (2)  Before varying the first infrastructure licence, the Joint Authority must:

                     (a)  by written notice given to the registered holder of the greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority, give at least 30 days notice that the Joint Authority is considering the application; and

                     (b)  give a copy of the notice to such other persons (if any) as the Joint Authority thinks fit.

             (3)  The notice must:

                     (a)  set out details of the proposed variation; and

                     (b)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the Joint Authority about the proposal; and

                     (c)  specify a time limit for the making of that submission.

Note:          All communications to the Joint Authority are to be made through the Designated Authority—see section 45.

             (4)  In deciding whether to vary the first infrastructure licence, the Joint Authority must take into account any submissions made in accordance with the notice.

143  At the end of Part 2.5

Add:

Division 4Directions by responsible Commonwealth Minister

177B  Directions by responsible Commonwealth Minister

             (1)  The responsible Commonwealth Minister may, by written notice given to the Joint Authority, give the Joint Authority a direction in relation to the exercise by the Joint Authority of a power conferred on the Joint Authority by this Part in relation to:

                     (a)  a specified application for an infrastructure licence, where any of the infrastructure facilities to which the licence relates is an infrastructure facility as a result of subsection 13(3); or

                     (b)  a specified infrastructure licence, where any of the infrastructure facilities to which the licence relates is an infrastructure facility as a result of subsection 13(3).

             (2)  The Joint Authority must comply with a direction under subsection (1).

             (3)  A direction under subsection (1) is not a legislative instrument.

144  Section 178

Omit:

•      A pipeline licence authorises the licensee to construct and operate a pipeline.

substitute:

•      A pipeline licence authorises the licensee to construct and operate a pipeline. A pipeline may be used to convey petroleum or a greenhouse gas substance.

145  At the end of section 181

Add:

Approval of greenhouse gas substance

             (5)  A pipeline licence is subject to the condition that the licensee will not operate the pipeline to convey a greenhouse gas substance unless the Joint Authority has approved the greenhouse gas substance under section 181A.

             (6)  Despite subsection (2), the condition mentioned in subsection (5) does not need to be specified in the licence.

             (7)  Subsection (5) does not limit subsection (1).

Access regime

             (8)  A pipeline licence is subject to the condition that, if:

                     (a)  regulations are made for the purposes of subsection (9); and

                     (b)  those regulations impose requirements on the licensee;

the licensee will comply with those requirements.

             (9)  The regulations may establish a regime for third party access to services provided by means of the use of greenhouse gas pipelines.

           (10)  Despite subsection (2), the condition mentioned in subsection (8) does not need to be specified in the licence.

           (11)  Subsection (8) does not limit subsection (1).

146  After section 181

Insert:

181A  Approval by Joint Authority of greenhouse gas substance to be conveyed in a pipeline

             (1)  A pipeline licensee may apply to the Joint Authority for approval of a greenhouse gas substance that is to be conveyed by means of the pipeline.

             (2)  If an application for approval is made under subsection (1), the Joint Authority may, by written notice given to the applicant:

                     (a)  give the approval, with or without conditions to which the approval is subject; or

                     (b)  refuse to give the approval.

             (3)  In deciding whether to give an approval, the Joint Authority must have regard to:

                     (a)  in a case where it is proposed to inject the greenhouse gas substance into an identified greenhouse gas storage formation:

                              (i)  whether the greenhouse gas substance is suitable for injection into the identified greenhouse gas storage formation; and

                             (ii)  whether the greenhouse gas substance is suitable for permanent storage in the identified greenhouse gas storage formation; and

                     (b)  in a case where it is proposed to inject the greenhouse gas substance, on an appraisal basis, into a potential greenhouse gas storage formation (other than an identified greenhouse gas storage formation):

                              (i)  whether the greenhouse gas substance is suitable for injection, on an appraisal basis, into the potential greenhouse gas storage formation; and

                             (ii)  whether the greenhouse gas substance is suitable for storage, on an appraisal basis, in the potential greenhouse gas storage formation; and

                     (c)  such other matters (if any) as the Joint Authority considers relevant.

             (4)  To avoid doubt, section 180 does not imply that a pipeline licensee who applies for approval under subsection (1) of this section is entitled to be given the approval.

             (5)  The responsible Commonwealth Minister may, by written notice given to the Joint Authority, give the Joint Authority a direction in relation to the exercise by the Joint Authority of the power conferred on the Joint Authority by subsection (2) in relation to a specified application.

             (6)  The Joint Authority must comply with a direction under subsection (5).

             (7)  A direction under subsection (5) is not a legislative instrument.

146A  Subsection 183(4) (note)

Omit “249”, substitute “442D”.

147  After subsection 183(4)

Insert:

          (4A)  For the purposes of subsection (3), the failure to obtain a greenhouse gas substance for conveyance in the pipeline, or a part of the pipeline, is not a circumstance beyond the licensee’s control.

148  Paragraph 185(2)(g)

After “petroleum”, insert “or greenhouse gas substances”.

149  At the end of subsection 185(3) (before the notes)

Add:

             ; and (d)  the location of any point that the applicant wants to be declared under section 14A to be a terminal point in connection with the pipeline.

150  Paragraph 186(1)(a)

After “of a”, insert “petroleum”.

Note:       The heading to section 186 is altered by inserting “petroleum‑related” before “pipeline”.

151  After section 186

Insert:

186A  Rights of production licensees following application for greenhouse gas‑related pipeline licences by other persons

Application by production licensee

             (1)  If:

                     (a)  a person applies for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a production licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a production licence area to a place in the production licence area; and

                     (b)  either:

                              (i)  if subparagraph (a)(i) applies—the greenhouse gas substance is a by‑product of petroleum recovery operations carried on under the production licence; or

                             (ii)  if subparagraph (a)(ii) applies—the greenhouse gas substance is to be injected into the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the production licence; and

                     (c)  the person is not the production licensee;

the production licensee may, within:

                     (d)  90 days after the publication in the Gazette of notice of the application; or

                     (e)  such longer period, not more than 180 days, as the Joint Authority allows;

apply under section 185 for such a pipeline licence and, in the application, request that the application mentioned in the Gazette notice be rejected.

Note:          For publication in the Gazette of notice of the application, see section 418.

Rejection of application by other person

             (2)  If a pipeline licence is granted to the production licensee as a result of an application covered by subsection (1), the Joint Authority must, by written notice given to the person mentioned in paragraph (1)(a), reject the application mentioned in paragraph (1)(d).

Extension of time

             (3)  The Joint Authority may allow a longer period under paragraph (1)(e) only on written application made by the production licensee within the period of 90 days mentioned in paragraph (1)(d).

186B  Rights of greenhouse gas injection licensees following application for greenhouse gas‑related pipeline licences by other persons

Application by greenhouse gas injection licensee

             (1)  If:

                     (a)  a person applies for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a greenhouse gas injection licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a greenhouse gas injection area to a place in the greenhouse gas injection licence area; and

                     (b)  the greenhouse gas substance is to be injected into an identified greenhouse gas storage formation that is wholly situated in the greenhouse gas injection licence area; and

                     (c)  the person is not the greenhouse gas injection licensee;

the greenhouse gas injection licensee may, within:

                     (d)  90 days after the publication in the Gazette of notice of the application; or

                     (e)  such longer period, not more than 180 days, as the Joint Authority allows;

apply under section 185 for such a pipeline licence and, in the application, request that the application mentioned in the Gazette notice be rejected.

Note:          For publication in the Gazette of notice of the application, see section 418.

Rejection of application by other person

             (2)  If a pipeline licence is granted to the greenhouse gas injection licensee as a result of an application covered by subsection (1), the Joint Authority must, by written notice given to the person mentioned in paragraph (1)(a), reject the application mentioned in paragraph (1)(d).

Extension of time

             (3)  The Joint Authority may allow a longer period under paragraph (1)(e) only on written application made by the greenhouse gas injection licensee within the period of 90 days mentioned in paragraph (1)(d).

152  Paragraph 187(2)(a)

After “of a”, insert “petroleum”.

Note:       The heading to section 187 is altered by inserting “petroleum‑related” before “pipeline”.

153  Paragraph 187(3)(a)

After “of a”, insert “petroleum”.

154  Paragraph 187(4)(a)

After “of a”, insert “petroleum”.

155  Subsection 187(5)

After “of a”, insert “petroleum”.

156  Subsection 187(6)

After “by the”, insert “petroleum”.

157  After section 187

Insert:

187A  Grant of greenhouse gas‑related pipeline licence—offer document

Scope

             (1)  This section applies if an application for a pipeline licence has been made under section 185.

Offer document—grant of pipeline licence to a person other than production licensee

             (2)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a production licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a production licence area to a place in the production licence area; and

                     (b)  either:

                              (i)  if subparagraph (a)(i) applies—the greenhouse gas substance is a by‑product of petroleum recovery operations carried on under the production licence; or

                             (ii)  if subparagraph (a)(ii) applies—the greenhouse gas substance is to be injected into the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the production licence; and

                     (c)  the applicant is not the production licensee; and

                     (d)  the application has not been rejected under subsection 186A(2);

the Joint Authority may gave the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant the pipeline licence.

Offer document—grant of pipeline licence to production licensee

             (3)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a production licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a production licence area to a place in the production licence area; and

                     (b)  either:

                              (i)  if subparagraph (a)(i) applies—the greenhouse gas substance is a by‑product of petroleum recovery operations carried on under the production licence; or

                             (ii)  if subparagraph (a)(ii) applies—the greenhouse gas substance is to be injected into the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the production licence; and

                     (c)  the applicant is the production licensee; and

                     (d)  each of the following has been complied with:

                              (i)  the conditions to which the production licence is, or has from time to time been, subject;

                             (ii)  the provisions of this Chapter, Chapter 3, Chapter 4 and Part 5.1;

                            (iii)  the regulations;

the Joint Authority must give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant the pipeline licence.

             (4)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a production licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a production licence area to a place in the production licence area; and

                     (b)  either:

                              (i)  if subparagraph (a)(i) applies—the greenhouse gas substance is a by‑product of petroleum recovery operations carried on under the production licence; or

                             (ii)  if subparagraph (a)(ii) applies—the greenhouse gas substance is to be injected into the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the production licence; and

                     (c)  the applicant is the production licensee; and

                     (d)  any of:

                              (i)  the conditions to which the production licence is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3, Chapter 4 and Part 5.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (e)  the Joint Authority is satisfied that there are sufficient grounds to warrant the granting of the pipeline licence;

the Joint Authority may give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant the pipeline licence.

Offer document—grant of pipeline licence to a person other than greenhouse gas injection licensee

             (5)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a greenhouse gas injection licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a greenhouse gas injection area to a place in the greenhouse gas injection licence area; and

                     (b)  the greenhouse gas substance is to be injected into an identified greenhouse gas storage formation that is wholly situated in the greenhouse gas injection licence area; and

                     (c)  the applicant is not the greenhouse gas injection licensee; and

                     (d)  the application has not been rejected under subsection 186B(2);

the Joint Authority may gave the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant the pipeline licence.

Offer document—grant of pipeline licence to greenhouse gas injection licensee

             (6)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a greenhouse gas injection licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a greenhouse gas injection area to a place in the greenhouse gas injection licence area; and

                     (b)  the greenhouse gas substance is to be injected into an identified greenhouse gas storage formation that is wholly situated in the greenhouse gas injection licence area; and

                     (c)  the applicant is the greenhouse gas injection licensee; and

                     (d)  each of the following has been complied with:

                              (i)  the conditions to which the greenhouse gas injection licence is, or has from time to time been, subject;

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1;

                            (iii)  the regulations;

the Joint Authority must give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant the pipeline licence.

             (7)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a greenhouse gas injection licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a greenhouse gas injection area to a place in the greenhouse gas injection licence area; and

                     (b)  the greenhouse gas substance is to be injected into an identified greenhouse gas storage formation that is wholly situated in the greenhouse gas injection licence area; and

                     (c)  the applicant is the greenhouse gas injection licensee; and

                     (d)  any of:

                              (i)  the conditions to which the greenhouse gas injection licence is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (e)  the Joint Authority is satisfied that there are sufficient grounds to warrant the granting of the pipeline licence;

the Joint Authority may give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant the pipeline licence.

Route to be followed by pipeline

             (8)  An offer document under this section must specify the route to be followed by the greenhouse gas pipeline, and that route must be:

                     (a)  the route shown in the plan accompanying the application; or

                     (b)  if the Joint Authority is of the opinion that, for any reason, that route is not appropriate—a route that, in the opinion of the Joint Authority, is appropriate.

Note 1:       Section 223 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 222 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 222(3).

158  Paragraph 188(2)(a)

After “of a”, insert “petroleum”.

Note:       The heading to section 188 is altered by inserting “petroleum‑related” before “pipeline”.

159  Paragraph 188(3)(a)

After “of a”, insert “petroleum”.

160  After section 188

Insert:

188A  Refusal to grant greenhouse gas‑related pipeline licence

Scope

             (1)  This section applies if an application for a pipeline licence has been made under section 185.

Application by licensee of production licence

             (2)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a production licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a production licence area to a place in the production licence area; and

                     (b)  either:

                              (i)  if subparagraph (a)(i) applies—the greenhouse gas substance is a by‑product of petroleum recovery operations carried on under the production licence; or

                             (ii)  if subparagraph (a)(ii) applies—the greenhouse gas substance is to be injected into the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the production licence; and

                     (c)  the applicant is the production licensee; and

                     (d)  any of:

                              (i)  the conditions to which the production licence is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3, Chapter 4 and Part 5.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (e)  the Joint Authority is not satisfied that there are sufficient grounds to warrant the granting of a pipeline licence;

the Joint Authority must, by written notice given to the applicant, refuse to grant the pipeline licence.

Note:          Consultation procedures apply—see section 226.

Application by a person who is not a production licensee

             (3)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a production licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a production licence area to a place in the production licence area; and

                     (b)  either:

                              (i)  if subparagraph (a)(i) applies—the greenhouse gas substance is a by‑product of petroleum recovery operations carried on under the production licence; or

                             (ii)  if subparagraph (a)(ii) applies—the greenhouse gas substance is to be injected into the seabed or subsoil for the purpose of enhancing petroleum recovery operations carried on under the production licence; and

                     (c)  the applicant is not the production licensee;

the Joint Authority may, by written notice given to the applicant, refuse to grant the pipeline licence.

Application by licensee of greenhouse gas injection licence

             (4)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a greenhouse gas injection licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a greenhouse gas injection area to a place in the greenhouse gas injection licence area; and

                     (b)  the greenhouse gas substance is to be injected into an identified greenhouse gas storage formation that is wholly situated in the greenhouse gas injection licence area; and

                     (c)  the applicant is the greenhouse gas injection licensee; and

                     (d)  any of:

                              (i)  the conditions to which the greenhouse gas injection licence is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (e)  the Joint Authority is not satisfied that there are sufficient grounds to warrant the granting of a pipeline licence;

the Joint Authority must, by written notice given to the applicant, refuse to grant the pipeline licence.

Note:          Consultation procedures apply—see section 226.

Application by a person who is not a greenhouse gas injection licensee

             (5)  If:

                     (a)  the application is for a pipeline licence in relation to the construction, in an offshore area, of a greenhouse gas pipeline for:

                              (i)  the conveyance of a greenhouse gas substance within a greenhouse gas injection licence area in that offshore area; or

                             (ii)  the conveyance of a greenhouse gas substance from a place outside a greenhouse gas injection licence area to a place in the greenhouse gas injection licence area; and

                     (b)  the greenhouse gas substance is to be injected into an identified greenhouse gas storage formation that is wholly situated in the greenhouse gas injection licence area; and

                     (c)  the applicant is not the greenhouse gas injection licensee;

the Joint Authority may, by written notice given to the applicant, refuse to grant the pipeline licence.

161  Paragraph 189(a)

After “187”, insert “or 187A”.

162  Section 194

Omit:

•      A special prospecting authority may be granted over a block so long as no exploration permit, retention lease or production licence is in force over the block.

substitute:

•      A special prospecting authority may be granted over a block so long as none of the following is in force over the block:

               (a)     an exploration permit;

               (b)     a retention lease;

               (c)     a production licence;

               (d)     a greenhouse gas assessment permit;

               (e)     a greenhouse gas holding lease;

               (f)     a greenhouse gas injection licence.

163  Subsection 199(1)

Repeal the subsection, substitute:

             (1)  A person may apply to the Designated Authority for the grant of a special prospecting authority over a block or blocks, so long as none of the following is in force over that block or any of those blocks:

                     (a)  an exploration permit;

                     (b)  a retention lease;

                     (c)  a production licence;

                     (d)  a greenhouse gas assessment permit;

                     (e)  a greenhouse gas holding lease;

                      (f)  a greenhouse gas injection licence.

164  At the end of Division 2 of Part 2.7

Add:

201A  Holders to be informed of the grant of greenhouse gas search authority

Scope

             (1)  This section applies if:

                     (a)  a person (the first person) is the registered holder of a special prospecting authority over a block; and

                     (b)  a greenhouse gas search authority is granted to another person (the second person) over the block.

Holders to be informed

             (2)  The responsible Commonwealth Minister must, by written notice given to the first person, inform the first person of:

                     (a)  the operations authorised by the greenhouse gas search authority granted to the second person; and

                     (b)  the conditions of the greenhouse gas search authority granted to the second person.

             (3)  The Designated Authority must, by written notice given to the second person, inform the second person of:

                     (a)  the petroleum exploration operations authorised by the special prospecting authority granted to the first person; and

                     (b)  the conditions of the special prospecting authority granted to the first person.

165  Subsection 226(1) (table)

At the end of the table, add:

 

6

section 188A

refusal to grant a pipeline licence to a production licensee

the licensee.

7

section 188A

refusal to grant a pipeline licence to a greenhouse gas injection licensee

the licensee.

165AA  At the end of Part 2.10

Add:

226A  Responsible Commonwealth Minister may require information about negotiations for a designated agreement

Scope

             (1)  This section applies to the following applications:

                     (a)  an application under subsection 79A(1) for approval to carry on one or more key petroleum operations under a declared exploration permit;

                     (b)  an application under section 114A for approval to carry on one or more key petroleum operations under a declared retention lease;

                     (c)  an application under subsection 138A(1) for approval to carry on one or more key petroleum operations under a declared production licence;

where either or both of the following are relevant to the responsible Commonwealth Minister’s decision on the application:

                     (d)  the existence or non‑existence of a designated agreement;

                     (e)  the terms of a designated agreement.

Report about negotiations

             (2)  The responsible Commonwealth Minister may, by written notice given to the applicant, require the applicant to give to the responsible Commonwealth Minister, within the period specified in the notice, a written report about negotiations, or attempts at negotiations, relating to:

                     (a)  the entering into of the designated agreement; and

                     (b)  the terms of the designated agreement.

Consequences of breach of requirement

             (3)  If the applicant breaches the requirement, the responsible Commonwealth Minister may, by written notice given to the applicant:

                     (a)  refuse to consider the application; or

                     (b)  refuse to take any action, or any further action, in relation to the application.

             (4)  Subsection (3) has effect despite any provision of this Act that requires the responsible Commonwealth Minister to:

                     (a)  consider the application; or

                     (b)  take any particular action in relation to the application.

165A  Subsection 229(1) (note)

Omit “249”, substitute “442D”.

166  Subsection 229(3)

Omit “give”, substitute “given”.

167  After subsection 247(3)

Insert:

          (3A)  Subsections (2) and (3) do not apply if the petroleum is discovered by:

                     (a)  a greenhouse gas assessment permittee; or

                     (b)  a greenhouse gas holding lessee; or

                     (c)  a greenhouse gas injection licensee.

Note:       The heading to section 247 is altered by adding at the end “in exploration permit area or retention lease area”.

168  Section 249

Repeal the section.

169  After Chapter 2

Insert:

Chapter 2ARegulation of activities relating to injection and storage of greenhouse gas substances

Part 2A.1Introduction

  

249AA  Simplified outline

                   The following is a simplified outline of this Chapter:

•      This Chapter provides for the grant of the following titles:

               (a)     a greenhouse gas assessment permit (see Part 2A.2);

               (b)     a greenhouse gas holding lease (see Part 2A.3);

               (c)     a greenhouse gas injection licence (see Part 2A.4);

               (d)     a greenhouse gas search authority (see Part 2A.5);

               (e)     a greenhouse gas special authority (see Part 2A.6).

•      A greenhouse gas assessment permit authorises the permittee to explore in the permit area for potential greenhouse gas storage formations and potential greenhouse gas injection sites.

•      If an eligible greenhouse gas storage formation is identified in a greenhouse gas permit area, the responsible Commonwealth Minister may declare that the formation is an identified greenhouse gas storage formation.

•      After the declaration of an identified greenhouse gas storage formation in a greenhouse gas permit area, the permittee may apply for a greenhouse gas holding lease or a greenhouse gas injection licence.

•      A greenhouse gas holding lease is granted if the applicant is not currently in a position to inject and store a greenhouse gas substance, but is likely to be in such a position within 15 years. The lessee may apply for a greenhouse gas injection licence.

•      A greenhouse gas injection licence authorises the licensee to carry out greenhouse gas injection and storage operations in the licence area.

•      A greenhouse gas search authority authorises the holder to carry on operations in the authority area relating to the exploration for potential greenhouse gas storage formations or potential greenhouse gas injection sites (but not to make a well).

•      A greenhouse gas special authority authorises the holder to carry on certain greenhouse gas‑related operations in the authority area (but not to make a well).

•      Part 2A.7 provides for the grant of greenhouse gas research consents. A greenhouse gas research consent authorises the holder to carry on greenhouse gas‑related operations in the course of a scientific investigation.

Part 2A.2Greenhouse gas assessment permits

Division 1General provisions

249AB  Simplified outline

                   The following is a simplified outline of this Part:

•      It is an offence to explore in an offshore area for a potential greenhouse gas storage formation, or a potential greenhouse gas injection site, except:

               (a)     under a greenhouse gas assessment permit; or

               (b)     as otherwise authorised or required by or under this Act.

•      This Part provides for the grant of greenhouse gas assessment permits over blocks in an offshore area.

•      A greenhouse gas assessment permit authorises the permittee to explore in the permit area for potential greenhouse gas storage formations and potential greenhouse gas injection sites.

•      There are 2 types of greenhouse gas assessment permits:

               (a)     a greenhouse gas assessment permit granted on the basis of work program bidding (a work‑bid greenhouse gas assessment permit);

               (b)     a greenhouse gas assessment permit granted on the basis of cash bidding (a cash‑bid greenhouse gas assessment permit).

•      If an eligible greenhouse gas storage formation is identified in a greenhouse gas permit area, the responsible Commonwealth Minister may declare that the formation is an identified greenhouse gas storage formation.

249AC  Prohibition of unauthorised exploration for potential greenhouse gas storage formation, or potential greenhouse gas injection site, in offshore area

             (1)  A person commits an offence if:

                     (a)  the person explores for:

                              (i)  a potential greenhouse gas storage formation; or

                             (ii)  a potential greenhouse gas injection site; and

                     (b)  the exploration occurs in an offshore area.

Penalty:  Imprisonment for 5 years.

             (2)  Subsection (1) does not apply to conduct that is:

                     (a)  authorised by a greenhouse gas assessment permit; or

                     (b)  otherwise authorised or required by or under this Act.

Note:          The defendant bears an evidential burden in relation to the matter in subsection (2)—see subsection 13.3(3) of the Criminal Code.

249AD  Rights conferred by greenhouse gas assessment permit

             (1)  A greenhouse gas assessment permit authorises the permittee, in accordance with the conditions (if any) to which the permit is subject:

                     (a)  to explore in the permit area for a potential greenhouse gas storage formation; and

                     (b)  to explore in the permit area for a potential greenhouse gas injection site; and

                     (c)  to inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation, so long as the relevant well is situated in the permit area; and

                     (d)  to store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation, so long as the injection of the stored greenhouse gas substance takes place at a well situated the permit area; and

                     (e)  to inject, on an appraisal basis:

                              (i)  air; or

                             (ii)  petroleum; or

                            (iii)  water;

                            into a part of a geological formation for purposes in connection with the exploration authorised by paragraph (a) or (b), so long as the relevant well is situated in the permit area; and

                      (f)  to store, on an appraisal basis:

                              (i)  air; or

                             (ii)  petroleum; or

                            (iii)  water;

                            in a part of a geological formation for purposes in connection with the exploration authorised by paragraph (a) or (b), so long as the injection of the stored air, petroleum or water takes place at a well situated in the permit area; and

                     (g)  with the written consent of the responsible Commonwealth Minister, to recover petroleum in the permit area for the sole purpose of appraising a discovery of petroleum that was made as an incidental consequence of:

                              (i)  the exploration authorised by paragraph (a) or (b); or

                             (ii)  the injection authorised by paragraph (c) or (e); and

                     (h)  to carry on such operations, and execute such works, in the permit area as are necessary for those purposes.

             (2)  The rights conferred on the permittee by subsection (1) are subject to this Act and the regulations.

             (3)  If petroleum is recovered by the permittee in the permit area as authorised by paragraph (1)(g), the petroleum does not become the property of the permittee.

             (4)  A greenhouse gas storage permit does not authorise the permittee to make a well outside the permit area.

249AE  Conditions of greenhouse gas assessment permits

             (1)  The responsible Commonwealth Minister may grant a greenhouse gas assessment permit subject to whatever conditions the responsible Commonwealth Minister thinks appropriate.

             (2)  The conditions (if any) must be specified in the permit.

Approval of key greenhouse gas operations

             (3)  A greenhouse gas assessment permit is subject to the condition that the permittee will not carry on key greenhouse gas operations under the permit unless:

                     (a)  the responsible Commonwealth Minister has approved the operations under section 249AF; and

                     (b)  the permittee complies with the conditions (if any) to which the approval is subject.

Securities

             (4)  A greenhouse gas assessment permit is subject to the condition that, if the permittee is given a notice under section 249NCA, the permittee will comply with the notice.

Work‑bid greenhouse gas assessment permits

             (5)  Any or all of the following conditions may be specified in a work‑bid greenhouse gas assessment permit:

                     (a)  conditions requiring the permittee to carry out work in, or in relation to, the permit area (including conditions requiring the permittee to carry out the work during a period of 12 months or longer, or during periods each of which is 12 months or longer);

                     (b)  conditions relating to the amounts that the permittee must spend in carrying out such work;

                     (c)  conditions requiring the permittee to comply with directions that:

                              (i)  relate to the matters covered by paragraphs (a) and (b); and

                             (ii)  are given in accordance with the permit.

Cash‑bid greenhouse gas assessment permits

             (6)  Despite subsection (1), a cash‑bid greenhouse gas assessment permit must not be granted subject to conditions requiring the permittee to:

                     (a)  carry out work in, or in relation to, the permit area; or

                     (b)  spend particular amounts on the carrying out of work in, or in relation to, the permit area.

Other provisions

             (7)  Despite subsection (2), the conditions mentioned in subsections (3) and (4) do not need to be specified in the permit.

             (8)  Subsections (3), (4) and (5) do not limit subsection (1).

249AF  Approval by responsible Commonwealth Minister of key greenhouse gas operations

             (1)  A greenhouse gas assessment permittee may apply to the responsible Commonwealth Minister for approval to carry on one or more key greenhouse gas operations under the permit.

             (2)  If an application for approval is made under subsection (1), the responsible Commonwealth Minister may:

                     (a)  give the approval, with or without conditions to which the approval is subject; or

                     (b)  by written notice given to the applicant, refuse to give the approval.

Responsible Commonwealth Minister must have regard to certain matters

             (3)  In deciding whether to give the approval, the responsible Commonwealth Minister must comply with subsections (4), (5), (6), (7) and (8).

             (4)  The responsible Commonwealth Minister must have regard to the impact (if any) that any of those key greenhouse gas operations could have on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence.

             (5)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing exploration permit held by a person other than the applicant; or

                     (b)  an existing retention lease held by a person other than the applicant; or

                     (c)  an existing production licence held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                     (d)  whether the registered holder of the exploration permit, retention lease or production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (e)  if so—the terms of that agreement.

             (6)  If:

                     (a)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under:

                              (i)  a future exploration permit over a block or blocks; or

                             (ii)  a future retention lease over a block or blocks; or

                            (iii)  a future production licence over a block or blocks; and

                     (b)  an exploration permit, retention lease or production licence is in force over the block or any of the blocks; and

                     (c)  the exploration permit, retention lease or production licence is held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                     (d)  whether the registered holder of the exploration permit, retention lease or production licence covered by paragraph (b) has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (e)  if so—the terms of that agreement.

             (7)  If any of those key greenhouse gas operations is:

                     (a)  an operation to inject, on an appraisal basis, a substance into a part of a geological formation; or

                     (b)  an operation to store, on an appraisal basis, a substance in a part of a geological formation;

the responsible Commonwealth Minister must have regard to the composition of the substance.

             (8)  The responsible Commonwealth Minister must have regard to the public interest.

             (9)  Subsections (4), (5), (6) and (7) do not limit subsection (8).

           (10)  Subsections (4), (5), (6), (7) and (8) do not limit the matters to which the responsible Commonwealth Minister may have regard.

Circumstances in which the approval must not be given

           (11)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing pre‑commencement petroleum title held by a person other than the applicant; or

                     (b)  an existing post‑commencement production licence held by a person other than the applicant;

the responsible Commonwealth Minister must not give the approval unless the registered holder of the pre‑commencement petroleum title, or the post‑commencement production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied.

           (12)  If:

                     (a)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre‑commencement petroleum title over a block or blocks; and

                     (b)  the existing pre‑commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant;

the responsible Commonwealth Minister must not give the approval unless the registered holder of the existing pre‑commencement petroleum title has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied.

No right to an approval

           (13)  To avoid doubt, section 249AD does not imply that a greenhouse gas assessment permittee who applies for approval under subsection (1) of this section is entitled to be given the approval.

Suspension of rights

           (14)  For the purposes of this section, disregard a suspension of rights under section 229.

249AH  Duration of greenhouse gas assessment permit

             (1)  The duration of a greenhouse gas assessment permit is worked out using the table:

 

Duration of greenhouse gas assessment permits

Item

This kind of permit...

remains in force...

1

an original greenhouse gas assessment permit

for the period of 6 years beginning on:

(a) the day on which the permit is granted; or

(b) if a later day is specified in the permit as the day on which the permit is to come into force—that later day.

2

a greenhouse gas assessment permit granted by way of renewal

for the period of 3 years beginning on:

(a) the day on which the permit is granted; or

(b) if a later day is specified in the permit as the day on which the permit is to come into force—that later day.

 

             (2)  Subsection (1) has effect subject to this Chapter.

Note 1:       For a special rule about the extension of the duration of a greenhouse gas assessment permit if the permittee applies for a declaration of an identified greenhouse gas storage formation, see section 249AHA.

Note 1A:    For a special rule about the extension of the duration of a greenhouse gas assessment permit pending a decision on a renewal application, see subsection 249ASA(6).

Note 2:       For a special rule about the extension of the duration of a greenhouse gas assessment permit if the permittee applies for a greenhouse gas holding lease or greenhouse gas injection licence, see section 249AI.

Note 3:       For special rules about when a greenhouse gas assessment permit ceases to be in force following the grant of a greenhouse gas holding lease or greenhouse gas injection licence, see sections 249BL and 249CO.

Note 4:       For special rules about the extension of the duration of a greenhouse gas assessment permit following a suspension or exemption decision, see sections 249KB and 249KD.

Note 5:       For the surrender of a greenhouse gas assessment permit, see Part 2A.10.

Note 6:       For the cancellation of a greenhouse gas assessment permit, see Part 2A.11.

249AHA  Extension of greenhouse gas assessment permit if permittee applies for a declaration of an identified greenhouse gas storage formation

             (1)  If:

                     (a)  a greenhouse gas assessment permit is in force; and

                     (b)  before the time when the permit would, apart from this subsection, expire, the permittee applies to the responsible Commonwealth Minister for a declaration of an identified greenhouse gas storage formation; and

                     (c)  if the declaration were made in accordance with the application, the identified greenhouse gas storage formation would be wholly situated in the permit area;

the permit continues in force until whichever is the latest of the following times:

                     (d)  if the responsible Commonwealth Minister makes a declaration of an identified greenhouse gas storage formation that is wholly situated in the permit area—the end of the period of 12 months after the day on which the declaration is made;

                     (e)  if the responsible Commonwealth Minister refuses to make a declaration of an identified greenhouse gas storage formation that is wholly situated in the permit area—the time when notice of the refusal is given to the permittee;

                      (f)  the time when the permit would, apart from this subsection, expire.

             (2)  Subsection (1) has effect subject to this Chapter, but despite section 249AH.

Note:          See the notes at the end of section 249AH.

249AI  Extension of greenhouse gas assessment permit if permittee applies for a greenhouse gas holding lease or greenhouse gas injection licence

             (1)  If:

                     (a)  a greenhouse gas assessment permit is in force over a block or blocks; and

                     (b)  before the time when the permit would, apart from this subsection, expire, the permittee applies to the responsible Commonwealth Minister for the grant of a greenhouse gas holding lease or greenhouse gas injection licence over the block or one or more of the blocks;

the table has effect:

 

Extension of permit

Item

In this case...

the permit continues in force over the block or blocks covered by the application until...

1

the responsible Commonwealth Minister gives the permittee an offer document relating to a greenhouse gas holding lease or greenhouse gas injection licence over the block or one or more of the blocks

the lease or licence is granted, the permittee withdraws the application or the application lapses.

2

the application is for a greenhouse gas holding lease and the responsible Commonwealth Minister refuses to grant the lease to the permittee

the end of the period of 12 months after the day on which the notice of the refusal was given to the permittee.

3

the application is for a greenhouse gas injection licence and the responsible Commonwealth Minister refuses to grant the licence to the permittee on a ground covered by paragraph 249CI(1)(c), (d), (e), (f) or (g)

the end of the period of 90 days after the day on which the notice of the refusal was given to the permittee.

4

the application is for a greenhouse gas injection licence and the responsible Commonwealth Minister refuses to grant the licence to the permittee on a ground not mentioned in item 3

notice of the refusal is given to the permittee.

             (2)  Subsection (1) has effect subject to this Chapter but despite section 249AH.

Note:          See the notes at the end of section 249AH.

Division 2Obtaining a work‑bid greenhouse gas assessment permit

249AJ  Application for work‑bid greenhouse gas assessment permit—advertising of blocks

Invitation to apply for a greenhouse gas assessment permit

             (1)  The responsible Commonwealth Minister may, by notice published in the Gazette:

                     (a)  invite applications for the grant of a greenhouse gas assessment permit over the block, or any or all of the blocks, specified in the notice; and

                     (b)  specify a period within which applications may be made.

             (2)  If the responsible Commonwealth Minister has published a notice under subsection 249AP(1) inviting applications for the grant of a greenhouse gas assessment permit over a block, the block must not be specified in a notice under subsection (1) of this section at any time during the period specified in the subsection 249AP(1) notice.

Note:          Subsection 249AP(1) deals with cash‑bid greenhouse gas assessment permits.

Application for greenhouse gas assessment permit

             (3)  An application under this section must be accompanied by details of:

                     (a)  the applicant’s proposals for work and expenditure in relation to the block or blocks specified in the application; and

                     (b)  the technical qualifications of the applicant and of the applicant’s employees; and

                     (c)  the technical advice available to the applicant; and

                     (d)  the financial resources available to the applicant.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Attributes of blocks

             (4)  The blocks specified in an application under this section must be blocks that are constituted by graticular sections that:

                     (a)  constitute a single area; and

                     (b)  are such that each graticular section in that area has a side in common with at least one other graticular section in that area.

             (5)  Subsection (4) does not apply to applications if the responsible Commonwealth Minister, for reasons that the responsible Commonwealth Minister thinks sufficient, includes in the subsection (1) notice a direction that subsection (4) does not apply to those applications.

249AJA  Retention lessee or production licensee to be notified of proposal to advertise blocks

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to publish a notice under subsection 249AJ(1) specifying a block that is the subject of a retention lease or production licence; and

                     (b)  at the time of the proposal, the lessee or licensee is entitled to make an application for the grant of a greenhouse gas holding lease over the block.

Notification

             (2)  The responsible Commonwealth Minister must, at least 60 days before the proposed publication of the subsection 249AJ(1) notice, notify the lessee or licensee of the proposed publication.

Deferral of publication of notice

             (3)  If, during the period:

                     (a)  beginning when the lessee or licensee is given the notification under subsection (2); and

                     (b)  ending at the end of the day of proposed publication of the subsection 249AJ(1) notice;

the lessee or licensee makes such an application, the responsible Commonwealth Minister must not publish the subsection 249AJ(1) notice until:

                     (c)  the application lapses; or

                     (d)  the lessee withdraws the application; or

                     (e)  the responsible Commonwealth Minister refuses to grant the greenhouse gas holding lease or greenhouse gas injection licence.

249AK  Grant of work‑bid greenhouse gas assessment permit—offer document

Scope

             (1)  This section applies if an application for the grant of a greenhouse gas assessment permit has been made under section 249AJ.

Offer document

             (2)  The responsible Commonwealth Minister may:

                     (a)  give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas assessment permit over the block or blocks specified in the offer document; or

                     (b)  by written notice given to the applicant, refuse to grant a greenhouse gas assessment permit to the applicant.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

Decision must be made within 12 months

             (3)  The responsible Commonwealth Minister must make a decision under subsection (2) within 12 months after the end of the period specified in the relevant notice under subsection 249AJ(1).

249AL  Ranking of multiple applicants for work‑bid greenhouse gas assessment permit

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister publishes a notice under subsection 249AJ(1) inviting applications for the grant of a greenhouse gas assessment permit; and

                     (b)  at the end of the period specified in the notice, 2 or more applications have been made under section 249AJ for the grant of a greenhouse gas assessment permit over the same block or blocks.

Most deserving applicant may be given offer document

             (2)  The responsible Commonwealth Minister may give an offer document under section 249AK to whichever applicant, in the responsible Commonwealth Minister’s opinion, is most deserving of the grant of the greenhouse gas assessment permit.

             (3)  In determining which of the applicants is most deserving of the grant of the greenhouse gas assessment permit, the responsible Commonwealth Minister must have regard to criteria made publicly available by the responsible Commonwealth Minister.

          (3A)  Criteria under subsection (3) must consist of, or include, criteria relating to proposals for work and expenditure in relation to the block or blocks concerned.

          (3B)  Criteria under subsection (3) may include criteria relating to any or all of the following matters:

                     (a)  economic matters;

                     (b)  commercial matters;

                     (c)  public interest matters.

          (3C)  Subsection (3B) does not limit subsection (3).

Ranking of applicants

             (4)  For the purposes of this section, the responsible Commonwealth Minister may rank the applicants in the order in which, in the responsible Commonwealth Minister’s opinion, they are deserving of the grant of the greenhouse gas assessment permit, with the most deserving applicant being ranked highest.

             (5)  The responsible Commonwealth Minister may exclude from the ranking any applicant who, in the responsible Commonwealth Minister’s opinion, is not deserving of the grant of the greenhouse gas assessment permit.

Applicants who are equally deserving of the grant of the greenhouse gas assessment permit

             (6)  If the responsible Commonwealth Minister:

                     (a)  has considered the information accompanying the applications; and

                     (b)  is of the opinion that 2 or more of the applicants are equally deserving of the grant of the greenhouse gas assessment permit;

the responsible Commonwealth Minister may, by written notice given to each of those applicants, invite them to give the responsible Commonwealth Minister:

                     (c)  details (the work/expenditure details) of their proposals for additional work and expenditure in relation to the block or blocks concerned; and

                     (d)  any other information that is relevant in determining which of the applicants is most deserving of the grant of the greenhouse gas assessment permit.

             (7)  A notice under subsection (6) must:

                     (a)  specify the kinds of work/expenditure details that the responsible Commonwealth Minister considers to be relevant in determining which of the applicants is most deserving of the grant of the greenhouse gas assessment permit; and

                     (b)  specify the kinds of other information that the responsible Commonwealth Minister considers to be relevant in determining which of the applicants is most deserving of the grant of the greenhouse gas assessment permit; and

                     (c)  specify the period within which the work/expenditure details and the other information must be given to the responsible Commonwealth Minister.

             (8)  If an applicant gives work/expenditure details or other information to the responsible Commonwealth Minister, and those details are or that information is:

                     (a)  of a kind specified in the notice; and

                     (b)  given within the period specified in the notice;

the responsible Commonwealth Minister must have regard to the details or information in determining which of the applicants is most deserving of the grant of the greenhouse gas assessment permit.

Criteria

             (9)  An instrument setting out criteria under subsection (3) is not a legislative instrument.

Note:          See also section 249AO, which deals with the effect of the withdrawal or lapse of an application.

249AM  Grant of work‑bid greenhouse gas assessment permit

                   If:

                     (a)  an applicant has been given an offer document under section 249AK; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas assessment permit over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

249AN  Withdrawal of application

Scope

             (1)  This section applies if the responsible Commonwealth Minister publishes a notice under subsection 249AJ(1) inviting applications for the grant of a greenhouse gas assessment permit.

Withdrawal by single applicant

             (2)  If a person has made an application, the person may, by written notice given to the responsible Commonwealth Minister, withdraw the application at any time before a greenhouse gas assessment permit is granted as a result of the application.

Withdrawal by all joint applicants

             (3)  If 2 or more persons have made a joint application, all of those persons may, by written notice given to the responsible Commonwealth Minister, withdraw the application at any time before a greenhouse gas assessment permit is granted as a result of the application.

Withdrawal by one or more, but not all, joint applicants

             (4)  If:

                     (a)  a joint application was made under section 249AJ for the grant of a greenhouse gas assessment permit; and

                     (b)  all of the joint applicants, by written notice given to the responsible Commonwealth Minister, tell the responsible Commonwealth Minister that one or more, but not all, of them, as specified in the notice, withdraw from the application;

then:

                     (c)  the application continues in force as if it had been made by the remaining applicant or applicants; and

                     (d)  if the responsible Commonwealth Minister had given the joint applicants an offer document in relation to the application—the responsible Commonwealth Minister is taken not to have given the offer document to the joint applicants.

249AO  Effect of withdrawal or lapse of application

Scope

             (1)  This section applies if:

                     (a)  2 or more applications have been made under section 249AJ for the grant of a greenhouse gas assessment permit over the same block or blocks; and

                     (b)  one or more, but not all, of the applications are withdrawn or have lapsed.

Application is taken not to have been made

             (2)  A withdrawn or lapsed application is taken not to have been made.

Offer document is taken not to have been given

             (3)  If the responsible Commonwealth Minister gave an offer document in relation to a withdrawn or lapsed application, the responsible Commonwealth Minister is taken not to have given an offer document in relation to the withdrawn or lapsed application.

Request to grant greenhouse gas assessment permit

             (4)  If the applicant, or one of the applicants, whose application had been withdrawn had requested the responsible Commonwealth Minister under section 249JF to grant a greenhouse gas assessment permit to the applicant concerned, the request is taken not to have been made.

Discharge of security

             (5)  If:

                     (a)  the offer document in relation to a withdrawn application specified the form and amount of a security to be lodged by the applicant; and

                     (b)  the applicant had lodged the security;

the security is discharged.

Refusal to grant greenhouse gas assessment permit

             (6)  If the following conditions are satisfied in relation to a remaining applicant:

                     (a)  the responsible Commonwealth Minister had refused to grant a greenhouse gas assessment permit to the remaining applicant;

                     (b)  the responsible Commonwealth Minister did not exclude the remaining applicant from the ranking under subsection 249AL(5);

the refusal is taken not to have occurred.

Division 3Obtaining a cash‑bid greenhouse gas assessment permit

249AP  Application for cash‑bid greenhouse gas assessment permit

Invitation to apply for a greenhouse gas assessment permit

             (1)  The responsible Commonwealth Minister may, by notice published in the Gazette:

                     (a)  invite applications by way of cash bidding for the grant of a greenhouse gas assessment permit over the block or blocks specified in the notice; and

                     (b)  specify a period within which applications may be made.

             (2)  If the responsible Commonwealth Minister has published a notice under subsection 249AJ(1) inviting applications for the grant of a greenhouse gas assessment permit over a block, the block must not be specified in a notice under subsection (1) of this section at any time during the period specified in the subsection 249AJ(1) notice.

Note:          Subsection 249AJ(1) deals with work‑bid greenhouse gas assessment permits.

             (3)  A notice under subsection (1) must:

                     (a)  contain a summary of the conditions to which the permit will be subject; and

                     (b)  specify the matters that the responsible Commonwealth Minister will take into account in deciding whether to reject an application.

             (4)  If a notice under subsection (1) specifies more than one block, those blocks must be constituted by graticular sections that:

                     (a)  constitute a single area; and

                     (b)  are such that each graticular section in that area has a side in common with at least one other graticular section in that area.

Application for greenhouse gas assessment permit

             (5)  If a notice under subsection (1) specifies more than one block, an application under this section must be for a greenhouse gas assessment permit over all of the specified blocks.

             (6)  An application under this section must:

                     (a)  be accompanied by details of:

                              (i)  the technical qualifications of the applicant and of the applicant’s employees; and

                             (ii)  the technical advice available to the applicant; and

                            (iii)  the financial resources available to the applicant; and

                     (b)  specify the amount that the applicant would be prepared to pay for the grant of the permit.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

249APA  Retention lessee or production licensee to be notified of proposal to advertise blocks

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to publish a notice under subsection 249AP(1) specifying a block that is the subject of a retention lease or production licence; and

                     (b)  at the time of the proposal, the lessee or licensee is entitled to make an application for the grant of a greenhouse gas holding lease or a greenhouse gas injection licence over the block.

Notification

             (2)  The responsible Commonwealth Minister must, at least 60 days before the proposed publication of the subsection 249AP(1) notice, notify the lessee or licensee of the proposed publication.

Deferral of publication of notice

             (3)  If, during the period:

                     (a)  beginning when the lessee or licensee is given the notification under subsection (2); and

                     (b)  ending at the end of the day of proposed publication of the subsection 249AP(1) notice;

the lessee or licensee makes such an application, the responsible Commonwealth Minister must not publish the subsection 249AP(1) notice until:

                     (c)  the application lapses; or

                     (d)  the lessee withdraws the application; or

                     (e)  the responsible Commonwealth Minister refuses to grant the greenhouse gas holding lease or greenhouse gas injection licence.

249AQ  Grant of cash‑bid greenhouse gas assessment permit—only one application

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister publishes a notice under subsection 249AP(1) inviting applications for the grant of a greenhouse gas assessment permit over a block or blocks; and

                     (b)  at the end of the period specified in the notice, only one application has been made under section 249AP in relation to the block or blocks.

Offer document

             (2)  The responsible Commonwealth Minister may:

                     (a)  give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas assessment permit over that block or those blocks; or

                     (b)  by written notice given to the applicant, reject the application.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

249AR  Grant of cash‑bid greenhouse gas assessment permit—2 or more applications

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister publishes a notice under subsection 249AP(1) inviting applications for the grant of a greenhouse gas assessment permit over a block or blocks; and

                     (b)  at the end of the period specified in the notice, 2 or more applications have been made under section 249AP in relation to the block or blocks.

Rejection of applications

             (2)  The responsible Commonwealth Minister may reject any or all of the applications.

Unrejected applications

             (3)  If the responsible Commonwealth Minister does not reject all of the applications, the table has effect:

 

Unrejected applications

Item

If...

the responsible Commonwealth Minister may give a written notice (called an offer document) to...

1

only one application remains unrejected

the applicant.

2

(a) 2 or more applications remain unrejected; and

(b) the amounts specified in the applications under paragraph 249AP(6)(b) are equal

one of those applicants.

3

(a) 2 or more applications remain unrejected; and

(b) the amounts specified in the applications under paragraph 249AP(6)(b) are not equal; and

(c) the amount specified in one of the applications is higher than the amount or amounts specified in the remaining application or applications

whichever of those applicants specified the highest amount.

4

(a) 3 or more applications remain unrejected; and

(b) 2 or more of the amounts specified in the applications under paragraph 249AP(6)(b) are:

(i) equal; and

(ii) higher than the amount or amounts specified in the remaining application or applications

one of the applicants who specified the equal highest amount.

             (4)  An offer document given to an applicant must tell the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas assessment permit over the block or blocks.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If an applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

             (5)  If:

                     (a)  an applicant is given an offer document under this section; and

                     (b)  the application lapses as provided by section 249JF, 249JG or 249JGAA; and

                     (c)  there are one or more remaining unrejected applications;

subsections (3) and (4) of this section apply in relation to the remaining unrejected applications.

Unsuccessful applications

             (6)  If the responsible Commonwealth Minister does not give an offer document to an applicant, the responsible Commonwealth Minister must, by written notice given to the applicant, inform the applicant that the application was unsuccessful.

249AS  Grant of cash‑bid greenhouse gas assessment permit

             (1)  If:

                     (a)  an applicant has been given an offer document under section 249AQ or 249AR; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  the applicant has paid the specified amount within the period applicable under section 249JG; and

                     (d)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas assessment permit over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not paid the specified amount within the period applicable under section 249JG, the application lapses at the end of that period—see section 249JG.

Note 3:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

             (2)  For the purposes of this section, the specified amount is the amount specified in the offer document as the amount that the applicant must pay for the grant of the greenhouse gas assessment permit.

Division 3ARenewal of greenhouse gas assessment permits

249ASA  Application for renewal of greenhouse gas assessment permit

Application for renewal

             (1)  The registered holder of a greenhouse gas assessment permit may apply to the responsible Commonwealth Minister for the renewal by the responsible Commonwealth Minister of the permit.

             (2)  A greenhouse gas assessment permit cannot be renewed more than once.

             (3)  An application to renew a greenhouse gas assessment permit must be made:

                     (a)  not more than 12 months before the expiry date of the permit; and

                     (b)  at least 180 days before the expiry date of the permit.

             (4)  Despite subsection (3), the responsible Commonwealth Minister may accept an application to renew a greenhouse gas assessment permit if the application is made:

                     (a)  later than 180 days before the expiry date of the permit; and

                     (b)  before the expiry date of the permit.

             (5)  An application to renew a greenhouse gas assessment permit must be accompanied by details of:

                     (a)  the permittee’s proposals for work and expenditure in relation to the permit area; and

                     (b)  such other information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Extension of duration of greenhouse gas assessment permit pending decision on application

             (6)  If:

                     (a)  a greenhouse gas assessment permittee makes an application to renew the permit; and

                     (b)  the permit would, apart from this subsection, expire:

                              (i)  before the responsible Commonwealth Minister grants, or refuses to grant, the renewal of the permit; or

                             (ii)  before the application lapses as provided by section 249JF;

the permit continues in force:

                     (c)  until the responsible Commonwealth Minister grants, or refuses to grant, the renewal of the permit; or

                     (d)  until the application so lapses;

whichever happens first.

             (7)  Subsection (6) has effect subject to this Chapter but despite section 249AH.

Note:          See the notes at the end of section 249AH.

249ASB  Renewal of greenhouse gas assessment permit—offer document

Scope

             (1)  This section applies if an application to renew a greenhouse gas assessment permit has been made under section 249ASA.

Offer document—compliance with conditions etc.

             (2)  If:

                     (a)  each of the following has been complied with:

                              (i)  the conditions to which the greenhouse gas assessment permit is, or has from time to time been, subject;

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1;

                            (iii)  the provisions of the regulations; and

                     (b)  during the period when the permit was in force, at least one notice was given under section 249NA about a part of a geological formation wholly situated in the permit area;

the responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to renew the permit.

Note:          Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Offer document—non‑compliance with conditions etc.

             (3)  If:

                     (a)  any of:

                              (i)  the conditions to which the greenhouse gas assessment permit is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  in a case where:

                              (i)  the permit is a work‑bid greenhouse gas assessment permit; and

                             (ii)  the permit is subject to one or more conditions of the kind mentioned in subsection 249AE(5); and

                            (iii)  one or more of those conditions have not been complied with;

                            the responsible Commonwealth Minister is satisfied that the non‑compliance is attributable to unavoidable delays caused by the unavailability of essential services or essential equipment, or both; and

                     (c)  the responsible Commonwealth Minister is satisfied that there are sufficient grounds to warrant the granting of the renewal of the greenhouse gas assessment permit;

the responsible Commonwealth Minister may give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to renew the permit.

Note:          Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Offer document—no section 249NA notice

             (4)  If:

                     (a)  each of the following has been complied with:

                              (i)  the conditions to which the greenhouse gas assessment permit is, or has from time to time been, subject;

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1;

                            (iii)  the provisions of the regulations; and

                     (b)  during the period when the greenhouse gas assessment permit was in force, no notice under section 249NA was given about a part of a geological formation wholly situated in the permit area; and

                     (c)  the responsible Commonwealth Minister is satisfied that there are sufficient grounds to warrant the granting of the renewal of the greenhouse gas assessment permit;

the responsible Commonwealth Minister may give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to renew the permit.

Note:          Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Work program condition

             (5)  For the purposes of this section, if:

                     (a)  the greenhouse gas assessment permit is subject to a condition requiring the permittee to carry out work in, or in relation to, the permit area during a particular period; and

                     (b)  the application for renewal of the permit was made during that period;

then, in determining whether the condition has been complied with, assume that the period had ended immediately before the application for renewal was made.

249ASC  Refusal to renew greenhouse gas assessment permit

Scope

             (1)  This section applies if an application to renew a greenhouse gas assessment permit has been made under section 249ASA.

Refusal to renew

             (2)  If:

                     (a)  any of:

                              (i)  the conditions to which the greenhouse gas assessment permit is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  in a case where:

                              (i)  the permit is a work‑bid greenhouse gas assessment permit; and

                             (ii)  the permit is subject to one or more conditions of the kind mentioned in subsection 249AE(5); and

                            (iii)  one or more of those conditions have not been complied with;

                            the responsible Commonwealth Minister is not satisfied that the non‑compliance is attributable to unavoidable delays caused by the unavailability of essential services or essential equipment or both; and

                     (c)  the responsible Commonwealth Minister is not satisfied that there are sufficient grounds to warrant the granting of the renewal of the greenhouse gas assessment permit;

the responsible Commonwealth Minister must, by written notice given to the applicant, refuse to renew the permit.

Note:          Consultation procedures apply—see section 249JH.

             (3)  If:

                     (a)  each of the following has been complied with:

                              (i)  the conditions to which the greenhouse gas assessment permit is, or has from time to time been, subject;

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1;

                            (iii)  the provisions of the regulations; and

                     (b)  during the period when the permit was in force, no notice was given under section 249NA about a part of a geological formation wholly situated in the permit area; and

                     (c)  the responsible Commonwealth Minister is not satisfied that there are sufficient grounds to warrant the granting of the renewal of the greenhouse gas assessment permit;

the responsible Commonwealth Minister must, by written notice given to the applicant, refuse to renew the permit.

Note:          Consultation procedures apply—see section 249JH.

Work program condition

             (4)  For the purposes of this section, if;

                     (a)  the greenhouse gas assessment permit is subject to a condition requiring the permittee to carry out work in, or in relation to, the permit area during a particular period; and

                     (b)  the application for renewal of the permit was made during that period;

then, in determining whether the condition has been complied with, assume that the period had ended immediately before the application for renewal was made.

249ASD  Renewal of greenhouse gas assessment permit

                   If:

                     (a)  an applicant has been given an offer document under section 249ASB; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must renew the greenhouse gas assessment permit.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

Division 4Declaration of identified greenhouse gas storage formation

249AU  Declaration of identified greenhouse gas storage formation

Scope

             (1)  This section applies if:

                     (a)  a greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, retention lease or production licence is in force; and

                     (b)  the permittee, lessee or licensee has reasonable grounds to believe that:

                              (i)  a part of a geological formation is an eligible greenhouse gas storage formation; and

                             (ii)  that part is wholly situated in the permit area, lease area or licence area.

Application for declaration of identified greenhouse gas storage formation

             (2)  The permittee, lessee or licensee may apply to the responsible Commonwealth Minister for the declaration of the part referred to in paragraph (1)(b) as an identified greenhouse gas storage formation.

             (3)  An application under this section must set out:

                     (a)  the applicant’s reasons for believing that the part referred to in paragraph (1)(b) is an eligible greenhouse gas storage formation; and

                     (b)  assuming that the part referred to in paragraph (1)(b) is an eligible greenhouse gas storage formation:

                              (i)  the fundamental suitability determinants of the eligible greenhouse gas storage formation; and

                             (ii)  an estimate of the spatial extent of the eligible greenhouse gas storage formation; and

                     (c)  such other information (if any) as is specified in the regulations.

          (3A)  An estimate of spatial extent must comply with such requirements as are specified in the regulations.

Requirement to give further information or carry out further analysis

             (4)  The responsible Commonwealth Minister may, by written notice given to the applicant, require the applicant:

                     (a)  to give the responsible Commonwealth Minister, within the period specified in the notice, further information in connection with the application; or

                     (b)  to:

                              (i)  carry out such further analysis of relevant information as is specified in the notice; and

                             (ii)  give the responsible Commonwealth Minister, within the period specified in the notice, a written report of the results of that analysis.

             (5)  If the applicant breaches a requirement under subsection (4), the responsible Commonwealth Minister may, by written notice given to the applicant:

                     (a)  refuse to consider the application; or

                     (b)  refuse to take any action, or any further action, in relation to the application.

Variation of application

             (6)  At any time before the responsible Commonwealth Minister makes a decision on an application under this section, the applicant may, by written notice given to the responsible Commonwealth Minister, vary:

                     (a)  any or all of the fundamental suitability determinants specified in the application; or

                     (b)  the spatial extent estimated in the application.

             (7)  A variation of an application must be made in the approved manner.

             (8)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

             (9)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

Declaration

           (10)  If:

                     (a)  an application is made under this section in relation to a part of a geological formation; and

                     (b)  the responsible Commonwealth Minister is satisfied that, using the fundamental suitability determinants set out in the application:

                              (i)  that part is an eligible greenhouse gas storage formation; and

                             (ii)  the estimate of the spatial extent set out in the application is a reasonable estimate of the spatial extent of the eligible greenhouse gas storage formation;

the responsible Commonwealth Minister must, by writing:

                     (c)  declare that part to be an identified greenhouse gas storage formation for the purposes of this Act; and

                     (d)  declare that, for the purposes of this Act, the spatial extent of the identified greenhouse gas storage formation is the spatial extent estimated in the application; and

                     (e)  declare that the fundamental suitability determinants specified in the application are the fundamental suitability determinants of the identified greenhouse gas storage formation for the purposes of this Act.

           (11)  A declaration under paragraph (10)(d) must set out the estimate of the spatial extent specified in the application.

           (12)  A declaration under paragraph (10)(e) must set out the fundamental suitability determinants specified in the application.

           (13)  A copy of a declaration under subsection (10) must be published in the Gazette.

Refusal to make declaration

           (14)  If:

                     (a)  an application is made under this section in relation to a part of a geological formation; and

                     (b)  the responsible Commonwealth Minister is not required by subsection (10) to make declarations under that subsection in relation to that part;

the responsible Commonwealth Minister must, by written notice given to the applicant, refuse to declare that part to be an identified greenhouse gas storage formation.

249AUA  Variation of declaration of identified greenhouse gas storage formation

Scope

             (1)  This section applies if a declaration is in force under section 249AU in relation to a part of a geological formation.

Variation of declaration

             (2)  The responsible Commonwealth Minister may, by writing, vary the declaration.

             (3)  A variation of the declaration may be made:

                     (a)  if the part is wholly situated in:

                              (i)  the permit area of a greenhouse gas assessment permit; or

                             (ii)  the lease area of a greenhouse gas holding lease; or

                            (iii)  the licence area of a greenhouse gas injection licence; or

                            (iv)  the licence area of a production licence; or

                             (v)  the lease area of a retention lease;

                            on the application of the registered holder of the permit, lease or licence; or

                     (b)  on the responsible Commonwealth Minister’s own initiative.

Application for variation

             (4)  An application for a variation of the declaration must:

                     (a)  set out the proposed variation; and

                     (b)  specify the reasons for the proposed variation.

Criteria

             (5)  In deciding whether to vary the declaration, the responsible Commonwealth Minister must have regard to:

                     (a)  any new information; and

                     (b)  any new analysis; and

                     (c)  any relevant scientific or technological developments; and

                     (d)  such other matters (if any) as the responsible Commonwealth Minister considers relevant.

Consultation

             (6)  Before varying a declaration under subsection (2) on the responsible Commonwealth Minister’s own initiative, the responsible Commonwealth Minister must consult:

                     (a)  if the part is wholly situated in the permit area of a greenhouse gas assessment permit—the permittee; or

                     (b)  if the part is wholly situated in the lease area of a greenhouse gas holding lease—the lessee; or

                     (c)  if the part is wholly situated in the licence area of a greenhouse gas injection licence—the licensee; or

                     (d)  if the part is wholly situated in the licence area of a production licence—the licensee; or

                     (e)  if the part is wholly situated in the lease area of a retention lease—the lessee.

Publication

             (7)  A copy of a variation under subsection (2) must be published in the Gazette.

Varied declarations

             (8)  If a declaration in force under section 249AU is varied, a reference in this Act to the declaration is a reference to the declaration as varied.

249AUB  Revocation of declaration of identified greenhouse gas storage formation

Scope

             (1)  This section applies if a declaration is in force under section 249AU in relation to a part of a geological formation.

Revocation of declaration

             (2)  The responsible Commonwealth Minister may revoke the declaration if the responsible Commonwealth Minister is satisfied that, using any set of fundamental suitability determinants, the part is not an eligible greenhouse gas storage formation.

             (3)  A copy of a revocation under subsection (2) must be published in the Gazette.

Consultation

             (4)  Before revoking a declaration under subsection (2), the responsible Commonwealth Minister must consult:

                     (a)  if the part is wholly situated in the permit area of a greenhouse gas assessment permit—the permittee; or

                     (b)  if the part is wholly situated in the lease area of a greenhouse gas holding lease—the lessee; or

                     (c)  if the part is wholly situated in the licence area of a greenhouse gas injection licence—the licensee; or

                     (d)  if the part is wholly situated in the licence area of a production licence—the licensee; or

                     (e)  if the part is wholly situated in the lease area of a retention lease—the lessee.

Responsible Commonwealth Minister must consider whether to vary a declaration

             (5)  If the responsible Commonwealth Minister proposes to revoke a declaration under subsection (2), the responsible Commonwealth Minister must consider whether the responsible Commonwealth Minister should instead vary the declaration under section 249AUA.

249AUBA  Register of Identified Greenhouse Gas Storage Formations

             (1)  The responsible Commonwealth Minister is to maintain a register, to be known as the Register of Identified Greenhouse Gas Storage Formations, in which the responsible Commonwealth Minister includes particulars of:

                     (a)  declarations made under section 249AU; and

                     (b)  variations of such declarations; and

                     (c)  revocations of such declarations.

             (2)  The Register may be maintained by electronic means.

             (3)  The Register is to be made available for inspection on the Internet.

             (4)  The Register is not a legislative instrument.

Division 5Directions

249AV  Responsible Commonwealth Minister may give directions to greenhouse gas assessment permittees

             (1)  The responsible Commonwealth Minister may, by written notice given to a greenhouse gas assessment permittee, give the permittee a direction for the purpose of:

                     (a)  eliminating; or

                     (b)  mitigating; or

                     (c)  managing;

the risk that operations carried on under the permit could have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (d)  an existing exploration permit; or

                     (e)  an existing retention lease; or

                      (f)  an existing production licence; or

                     (g)  a future exploration permit; or

                     (h)  a future retention lease; or

                      (i)  a future production licence.

             (2)  A direction under this section has effect, and must be complied with, despite:

                     (a)  any previous direction under this section; and

                     (b)  anything in the regulations or the applied provisions.

             (3)  A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument:

                     (a)  as in force or existing at the time when the direction takes effect; or

                     (b)  as in force or existing from time to time;

so long as the code of practice or standard is relevant to that matter.

             (4)  To avoid doubt, subsection (3) applies to an instrument, whether issued or made in Australia or outside Australia.

             (5)  A direction under this section may prohibit the doing of an act or thing:

                     (a)  unconditionally; or

                     (b)  subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

             (6)  A direction under this section is not a legislative instrument.

249AW  Compliance with directions

             (1)  A person commits an offence if:

                     (a)  the person is given a direction under section 249AV; and

                     (b)  the person engages in conduct; and

                     (c)  the person’s conduct breaches the direction.

Penalty:  100 penalty units.

             (2)  An offence against subsection (1) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

Part 2A.3Greenhouse gas holding leases

Division 1General provisions

249BA  Simplified outline

                   The following is a simplified outline of this Part:

•      This Part provides for the grant of greenhouse gas holding leases over blocks in an offshore area.

•      A greenhouse gas holding lease authorises the lessee to explore in the lease area for potential greenhouse gas storage formations and potential greenhouse gas injection sites.

•      A greenhouse gas holding lease may be granted to:

               (a)     the holder of a greenhouse gas assessment permit; or

               (b)     the holder of a greenhouse gas injection licence, where no greenhouse gas injection or permanent storage operations have been carried on under the licence; or

               (c)     an unsuccessful applicant for a greenhouse gas injection licence; or

               (d)     the holder of a retention lease.

•      The main criteria for granting a greenhouse gas holding lease are:

               (a)     an identified greenhouse gas storage formation is wholly situated in the lease area; and

               (b)     the applicant is not currently in a position to inject and permanently store a greenhouse gas substance, but is likely to be in such a position within 15 years.

249BB  Rights conferred by greenhouse gas holding lease

             (1)  A greenhouse gas holding lease authorises the lessee, in accordance with the conditions (if any) to which the lease is subject:

                     (a)  to explore in the lease area for a potential greenhouse gas storage formation; and

                     (b)  to explore in the lease area for a potential greenhouse gas injection site; and

                     (c)  to inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation, so long as the relevant well is situated in the lease area; and

                     (d)  to store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation, so long as the injection of the stored greenhouse gas substance takes place at a well situated in the lease area; and

                     (e)  to inject, on an appraisal basis:

                              (i)  air; or

                             (ii)  petroleum; or

                            (iii)  water;

                            into a part of a geological formation for purposes in connection with the exploration authorised by paragraph (a) or (b), so long as the relevant well is situated in the lease area; and

                      (f)  to store, on an appraisal basis:

                              (i)  air; or

                             (ii)  petroleum; or

                            (iii)  water;

                            in a part of a geological formation for purposes in connection with the exploration authorised by paragraph (a) or (b), so long as the injection of the stored air, petroleum or water takes place at a well situated in the lease area; and

                     (g)  with the written consent of the responsible Commonwealth Minister, to recover petroleum in the lease area for the sole purpose of appraising a discovery of petroleum that was made as an incidental consequence of:

                              (i)  the exploration authorised by paragraph (a) or (b); or

                             (ii)  the injection authorised by paragraph (c) or (e); and

                     (h)  to carry on such operations, and execute such works, in the lease area as are necessary for those purposes.

             (2)  The rights conferred on the lessee by subsection (1) are subject to this Act and the regulations.

             (3)  If petroleum is recovered by the lessee in the lease area as authorised by paragraph (1)(g), the petroleum does not become the property of the lessee.

             (4)  A greenhouse gas holding lease does not authorise the lessee to make a well outside the lease area.

249BC  Conditions of greenhouse gas holding leases

             (1)  The responsible Commonwealth Minister may grant a greenhouse gas holding lease subject to whatever conditions the responsible Commonwealth Minister thinks appropriate.

             (2)  The conditions (if any) must be specified in the lease.

Approval of key greenhouse gas operations

             (3)  A greenhouse gas holding lease is subject to the condition that the lessee will not carry on key greenhouse gas operations under the lease unless:

                     (a)  the responsible Commonwealth Minister has approved the operations under section 249BD; and

                     (b)  the lessee complies with the conditions (if any) to which the approval is subject.

Securities

             (4)  A greenhouse gas holding lease is subject to the condition that, if the lessee is given a notice under section 249NCA, the lessee will comply with the notice.

Work to be carried out by lessee

             (5)  Any or all of the following conditions may be specified in a greenhouse gas holding lease:

                     (a)  conditions requiring the lessee to carry out work in, or in relation to, the lease area;

                     (b)  conditions about the amounts that the lessee must spend in carrying out such work;

                     (c)  conditions requiring the lessee to comply with directions that:

                              (i)  relate to the matters covered by paragraphs (a) and (b); and

                             (ii)  are given in accordance with the lease.

Other provisions

             (6)  Despite subsection (2), the conditions mentioned in subsections (3) and (4) do not need to be specified in the lease.

             (7)  Subsections (3), (4) and (5) do not limit subsection (1).

249BD  Approval by responsible Commonwealth Minister of key greenhouse gas operations

             (1)  A greenhouse gas holding lessee may apply to the responsible Commonwealth Minister for approval to carry on one or more key greenhouse gas operations under the lease.

             (2)  If an application for approval is made under subsection (1), the responsible Commonwealth Minister may:

                     (a)  give the approval, with or without conditions to which the approval is subject; or

                     (b)  by written notice given to the applicant, refuse to give the approval.

Responsible Commonwealth Minister must have regard to certain matters

             (3)  In deciding whether to give the approval, the responsible Commonwealth Minister must comply with subsections (4), (5), (6), (7) and (8).

             (4)  The responsible Commonwealth Minister must have regard to the impact (if any) that any of those key greenhouse gas operations could have on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing exploration permit; or

                     (b)  an existing retention lease; or

                     (c)  an existing production licence; or

                     (d)  a future exploration permit; or

                     (e)  a future retention lease; or

                      (f)  a future production licence.

             (5)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing exploration permit held by a person other than the applicant; or

                     (b)  an existing retention lease held by a person other than the applicant; or

                     (c)  an existing production licence held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                     (d)  whether the registered holder of the exploration permit, retention lease or production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (e)  if so—the terms of that agreement.

             (6)  If:

                     (a)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under:

                              (i)  a future exploration permit over a block or blocks; or

                             (ii)  a future retention lease over a block or blocks; or

                            (iii)  a future production licence over a block or blocks; and

                     (b)  an exploration permit, retention lease or production licence is in force over the block or any of the blocks; and

                     (c)  the exploration permit, retention lease or production licence is held by a person other than the applicant;

the responsible Commonwealth Minister must have regard to:

                     (d)  whether the registered holder of the exploration permit, retention lease or production licence covered by paragraph (b) has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied; and

                     (e)  if so—the terms of that agreement.

             (7)  If any of those key greenhouse gas operations is:

                     (a)  an operation to inject, on an appraisal basis, a substance into a part of a geological formation; or

                     (b)  an operation to store, on an appraisal basis, a substance in a part of a geological formation;

the responsible Commonwealth Minister must have regard to the composition of the substance.

             (8)  The responsible Commonwealth Minister must have regard to the public interest.

             (9)  Subsections (4), (5), (6) and (7) do not limit subsection (8).

           (10)  Subsections (4), (5), (6), (7) and (8) do not limit the matters to which the responsible Commonwealth Minister may have regard.

Circumstances in which the approval must not be given

           (11)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (a)  an existing pre‑commencement petroleum title held by a person other than the applicant; or

                     (b)  an existing post‑commencement production licence held by a person other than the applicant;

the responsible Commonwealth Minister must not give the approval unless the registered holder of the pre‑commencement petroleum title, or the post‑commencement production licence, as the case may be, has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied.

           (12)  If:

                     (a)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of those key greenhouse gas operations will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre‑commencement petroleum title over a block or blocks; and

                     (b)  the existing pre‑commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant;

the responsible Commonwealth Minister must not give the approval unless the registered holder of the existing pre‑commencement petroleum title has agreed, in writing, to the applicant carrying on the key greenhouse gas operations in respect of which the responsible Commonwealth Minister is so satisfied.

No right to an approval

           (13)  To avoid doubt, section 249BB does not imply that a greenhouse gas holding lessee who applies for approval under subsection (1) of this section is entitled to be given the approval.

Suspension of rights

           (14)  For the purposes of this section, disregard a suspension of rights under section 229.

249BF  Duration of greenhouse gas holding lease

             (1)  A greenhouse gas holding lease (other than a special greenhouse gas holding lease) remains in force for the period of 5 years beginning on:

                     (a)  the day on which the lease is granted; or

                     (b)  if a later day is specified in the lease as the day on which the lease is to come into force—that later day.

             (2)  A special greenhouse gas holding lease remains in force indefinitely.

             (3)  Subsections (1) and (2) have effect subject to this Chapter.

Note 1:       For a special rule about the extension of the duration of a greenhouse gas holding lease if the lessee applies for a special greenhouse gas holding lease or greenhouse gas injection licence, see section 249BG.

Note 2:       For a special rule about the cancellation of a special greenhouse gas holding lease, see section 249BZB.

Note 2A:    For a special rule about the cancellation of a greenhouse gas holding lease granted to the holder of a retention lease, see section 249BZC.

Note 3:       For a special rule about the extension of the duration of a greenhouse gas holding lease pending a decision on a renewal application, see subsection 249BT(6).

Note 4:       For special rules about the duration of a greenhouse gas holding lease once a decision has been made refusing to renew the lease, see subsections 249BV(4) and (5).

Note 5:       For special rules about the extension of the duration of a greenhouse gas holding lease following a suspension or exemption decision, see sections 249KB and 249KD.

Note 6:       For a special rule about when a greenhouse gas holding lease ceases to be in force following the grant of a greenhouse gas injection licence, see section 249CO.

Note 7:       For the surrender of a greenhouse gas holding lease, see Part 2A.10.

Note 8:       For the cancellation of a greenhouse gas holding lease, see Part 2A.11.

249BG  Extension of greenhouse gas holding lease if lessee applies for a special greenhouse gas holding lease or greenhouse gas injection licence

             (1)  If:

                     (a)  a greenhouse gas holding lease (other than a special greenhouse gas holding lease) is in force over a block or blocks; and

                     (b)  before the time when the lease would, apart from this subsection, expire, the lessee applies to the responsible Commonwealth Minister for the grant of a special greenhouse gas holding lease or greenhouse gas injection licence over the block or one or more of the blocks;

the table has effect:

 

Extension of lease

Item

In this case...

the lease continues in force over the block or blocks covered by the application until...

1

the responsible Commonwealth Minister gives the lessee an offer document relating to a special greenhouse gas holding lease or greenhouse gas injection licence over the block or one or more of the blocks

the special greenhouse gas holding lease or greenhouse gas injection licence is granted, the lessee withdraws the application or the application lapses.

2

the application is for a special greenhouse gas holding lease and the responsible Commonwealth Minister refuses to grant the lease to the lessee

notice of the refusal is given to the lessee.

3

the application is for a greenhouse gas injection licence and the responsible Commonwealth Minister refuses to grant the licence to the lessee on a ground covered by paragraph 249CI(2)(c), (d), (e), (f) or (g)

the end of the period of 90 days after the day on which the notice of the refusal was given to the lessee.

4

the application is for a greenhouse gas injection licence and the responsible Commonwealth Minister refuses to grant the licence to the lessee on a ground not mentioned in item 3

notice of refusal is given to the lessee.

             (2)  Subsection (1) has effect subject to this Chapter but despite section 249BF.

Note:          See the notes at the end of section 249BF.

Division 2Obtaining a greenhouse gas holding lease

Subdivision AApplication for greenhouse gas holding lease by the holder of a greenhouse gas assessment permit

249BH  Application for greenhouse gas holding lease by the holder of a greenhouse gas assessment permit

Scope

             (1)  This section applies if:

                     (a)  a greenhouse gas assessment permit is in force; and

                     (b)  one or more identified greenhouse gas storage formations are wholly situated in the permit area.

Single identified greenhouse gas storage formation

             (2)  If a single identified greenhouse gas storage formation extends to:

                     (a)  only one block in the permit area; or

                     (b)  2 or more blocks in the permit area;

the permittee may, within the application period, apply to the responsible Commonwealth Minister for the grant of a greenhouse gas holding lease over the block or blocks to which the identified greenhouse gas storage formation extends.

Note:          For application period, see subsection (8).

Multiple identified greenhouse gas storage formations

             (3)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to only one block in the permit area; and

                     (b)  a vertical line would not pass through a point in each of those identified greenhouse gas storage formations;

the permittee may, within the application period, apply to the responsible Commonwealth Minister for the grant of a greenhouse gas holding lease over the block to which the identified greenhouse gas storage formations, when considered together, extend.

Note:          For application period, see subsection (8).

             (4)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to:

                              (i)  only one block in the permit area; or

                             (ii)  2 or more blocks in the permit area; and

                     (b)  a vertical line would pass through a point in each of those identified greenhouse gas storage formations;

the permittee may, within the application period, apply to the responsible Commonwealth Minister for the grant of a greenhouse gas holding lease over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend.

Note:          For application period, see subsection (8).

             (5)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to 2 or more blocks in the permit area; and

                     (b)  a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

                     (c)  for each identified greenhouse gas storage formation, at least one of the blocks to which the identified greenhouse gas storage formation extends immediately adjoins a block to which the other, or another, of those identified greenhouse gas storage formations extends;

the permittee may, within the application period, apply to the responsible Commonwealth Minister for the grant of a greenhouse gas holding lease over the blocks to which the identified greenhouse gas storage formations, when considered together, extend.

Note:          For application period, see subsection (8).

             (6)  For the purposes of subsection (5), a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block:

                     (a)  have a side in common; or

                     (b)  are joined together at one point only.

Application

             (7)  An application under this section must be accompanied by:

                     (a)  details of the applicant’s proposals for work and expenditure in relation to:

                              (i)  if there is a single identified greenhouse gas storage formation—the block or blocks, as the case may be, to which the identified greenhouse gas storage formation extends; or

                             (ii)  if there are 2 or more identified greenhouse gas storage formations—the block or blocks, as the case may be, to which the identified greenhouse gas storage formations, when considered together, extend; and

                     (b)  such other information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Application period

             (8)  The application period for an application under this section is:

                     (a)  the period of 12 months after:

                              (i)  if there is a single identified greenhouse gas storage formation—the day on which the declaration of the identified greenhouse gas storage formation was made by the responsible Commonwealth Minister; or

                              (i)  if there are 2 or more identified greenhouse gas storage formations—the earliest day on which a declaration of any of the identified greenhouse gas storage formations was made by the responsible Commonwealth Minister; or

                     (b)  such longer period, not more than 180 days after that day, as the responsible Commonwealth Minister allows.

             (9)  The responsible Commonwealth Minister may allow a longer period under paragraph (8)(b) only on written application made by the permittee within the period of 12 months mentioned in paragraph (8)(a).

Variation of application

           (10)  At any time before an offer document, or notice of refusal, relating to the application is given to the applicant, the applicant may, by written notice given to the responsible Commonwealth Minister, vary the application.

           (11)  A variation of an application must be made in the approved manner.

           (12)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

           (13)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

           (14)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

249BI  Grant of greenhouse gas holding lease—offer document

Single identified greenhouse gas storage formation

             (1)  If:

                     (a)  an application for a greenhouse gas holding lease has been made under subsection 249BH(2); and

                     (b)  the responsible Commonwealth Minister is satisfied that the applicant is not, at the time of the application, in a position to:

                              (i)  inject a greenhouse gas substance into the identified greenhouse gas storage formation concerned; and

                             (ii)  permanently store the greenhouse gas substance in the identified greenhouse gas storage formation concerned;

                            but is likely to be in such a position within 15 years;

the responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas holding lease over the block or blocks specified in the application.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

Multiple identified greenhouse gas storage formations

             (2)  If:

                     (a)  an application for a greenhouse gas holding lease has been made under subsection 249BH(3), (4) or (5); and

                     (b)  the responsible Commonwealth Minister is satisfied that the applicant is not, at the time of the application, in a position to:

                              (i)  inject a greenhouse gas substance into at least one of the identified greenhouse gas storage formations concerned; and

                             (ii)  permanently store the greenhouse gas substance in at least one of the identified greenhouse gas storage formations concerned;

                            but is likely to be in such a position within 15 years;

the responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas holding lease over the block or blocks specified in the application.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

249BJ  Refusal to grant greenhouse gas holding lease

Scope

             (1)  This section applies if an application for a greenhouse gas holding lease has been made under section 249BH.

Refusal notice

             (2)  If the responsible Commonwealth Minister is not satisfied as to:

                     (a)  in the case of an application made under subsection 249BH(2)—a matter referred to in paragraph 249BI(1)(b); or

                     (b)  in the case of an application made under subsection 249BH(3), (4) or (5)—a matter referred to in paragraph 249BI(2)(b);

the responsible Commonwealth Minister must, by written notice given to the applicant, refuse to grant a greenhouse gas holding lease to the applicant.

249BK  Grant of greenhouse gas holding lease

                   If:

                     (a)  an applicant has been given an offer document under section 249BI; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas holding lease over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

249BL  Greenhouse gas assessment permit ceases to be in force when greenhouse gas holding lease comes into force

                   When a greenhouse gas holding lease under section 249BK comes into force in relation to one or more blocks, a greenhouse gas assessment permit ceases to be in force to the extent to which it relates to those blocks.

249BM  Greenhouse gas assessment permit transferred—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a greenhouse gas assessment permit is registered under section 298‑262:

                     (a)  after an application has been made under section 249BH for the grant of a greenhouse gas holding lease over a block or blocks in relation to which the greenhouse gas assessment permit is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249BI or 249BJ in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249BH to 249BK and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

Subdivision BApplication for greenhouse gas holding lease by the holder of a greenhouse gas injection licence

249BN  Application for greenhouse gas holding lease by the holder of a greenhouse gas injection licence

             (1)  If:

                     (a)  a greenhouse gas injection licence is in force over a block or blocks; and

                     (b)  one or more identified greenhouse gas storage formations are wholly situated in the licence area;

the licensee may, within the application period, apply to the responsible Commonwealth Minister for the grant of a greenhouse gas holding lease over the block or blocks.

Note:          For application period, see subsection (3).

             (2)  An application under this section must be accompanied by details of:

                     (a)  the applicant’s proposals for work and expenditure in relation to the block or blocks specified in the application; and

                     (b)  such other information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Application period

             (3)  The application period for an application under this section by a licensee is the period of 5 years that began on the day on which the licence was granted.

Variation of application

             (4)  At any time before an offer document, or a notice of refusal, relating to the application is given to the applicant, the applicant may, by written notice given to the responsible Commonwealth Minister, vary the application.

             (5)  A variation of an application must be made in the approved manner.

             (6)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

             (7)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

             (8)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

249BO  Grant of greenhouse gas holding lease—offer document

                   If:

                     (a)  an application for a greenhouse gas holding lease has been made under section 249BN; and

                     (b)  the responsible Commonwealth Minister is satisfied that the applicant is not, at the time of the application, in a position to:

                              (i)  inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                             (ii)  store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned;

                            but is likely to be in such a position within 15 years;

the responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas holding lease over the block or blocks specified in the application.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

249BP  Refusal to grant greenhouse gas holding lease

                   If:

                     (a)  an application for a greenhouse gas holding lease has been made under section 249BN; and

                     (b)  the responsible Commonwealth Minister is not satisfied as to the matter referred to in paragraph 249BO(b) in relation to the block or blocks specified in the application;

the responsible Commonwealth Minister must, by written notice given to the applicant, refuse to grant a greenhouse gas holding lease to the applicant.

Note:          Consultation procedures apply—see section 249JH.

249BQ  Grant of greenhouse gas holding lease

                   If:

                     (a)  an applicant has been given an offer document under section 249BO; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas holding lease over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

249BR  Greenhouse gas injection licence ceases to be in force when greenhouse gas holding lease comes into force

                   When a greenhouse gas holding lease under section 249BQ comes into force in relation to one or more blocks, a greenhouse gas injection licence ceases to be in force to the extent to which it relates to those blocks.

249BS  Greenhouse gas injection licence transferred—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a greenhouse gas injection licence is registered under section 298‑262:

                     (a)  after an application has been made under section 249BN for the grant of a greenhouse gas holding lease over the block or blocks in relation to which the greenhouse gas injection licence is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249BO or 249BP in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249BN to 249BQ and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

Subdivision CApplication for special greenhouse gas holding lease by an unsuccessful applicant for a greenhouse gas injection licence

249BSA  Application for special greenhouse gas holding lease by an unsuccessful applicant for a greenhouse gas injection licence

             (1)  If:

                     (a)  either of the following is in force:

                              (i)  a greenhouse gas assessment permit;

                             (ii)  a greenhouse gas holding lease (other than a special greenhouse gas holding lease); and

                     (b)  one or more identified greenhouse gas storage formations are wholly situated in the permit area or lease area; and

                     (c)  the permittee or lessee makes an application under section 249CH for the grant of a greenhouse gas injection licence over the block or blocks in which the identified greenhouse gas storage formation or formations are wholly situated; and

                     (d)  if the applicant holds a greenhouse gas assessment permit—the responsible Commonwealth Minister refuses to grant the greenhouse gas injection licence on a ground covered by paragraph 249CI(1)(c), (d), (e), (f) or (g); and

                     (e)  if the applicant holds a greenhouse gas holding lease—the responsible Commonwealth Minister refuses to grant the greenhouse gas injection licence on a ground covered by paragraph 249CI(2)(c), (d), (e), (f) or (g);

the permittee or lessee may, within the application period, apply to the responsible Commonwealth Minister for the grant of a special greenhouse gas holding lease over the block or blocks covered by the unsuccessful application for the greenhouse gas injection licence.

Note:          For application period, see subsection (3).

             (2)  An application under this section must be accompanied by such information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Application period

             (3)  The application period for an application under this section by a permittee or lessee is the period of 90 days that began on the day on which the permittee or lessee was notified of the refusal to grant the greenhouse gas injection licence.

Variation of application

             (4)  At any time before an offer document relating to the application is given to the applicant, the applicant may, by written notice given to the responsible Commonwealth Minister, vary the application.

             (5)  A variation of an application must be made in the approved manner.

             (6)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

             (7)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

             (8)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

249BSB  Grant of special greenhouse gas holding lease—offer document

Scope

             (1)  This section applies if an application for a special greenhouse gas holding lease has been made under section 249BSA.

Offer document

             (2)  The responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a special greenhouse gas holding lease over the block or blocks covered by the application.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

249BSC  Grant of special greenhouse gas holding lease

             (1)  If:

                     (a)  an applicant has been given an offer document under section 249BSB; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas holding lease over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

             (2)  A greenhouse gas holding lease granted under subsection (1) is to be known as a special greenhouse gas holding lease.

249BSD  Greenhouse gas assessment permit ceases to be in force when special greenhouse gas holding lease comes into force

                   When a special greenhouse gas holding lease under section 249BSC comes into force in relation to one or more blocks, a greenhouse gas assessment permit ceases to be in force to the extent to which it relates to those blocks.

249BSE  Ordinary greenhouse gas holding lease ceases to be in force when special greenhouse gas holding lease comes into force

                   When a special greenhouse gas holding lease under section 249BSC comes into force in relation to one or more blocks, a greenhouse gas holding lease (other than a special greenhouse gas holding lease) ceases to be in force to the extent to which it relates to those blocks.

249BSF  Greenhouse gas assessment permit transfer—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a greenhouse gas assessment permit is registered under section 298‑262:

                     (a)  after an application has been made under section 249BSA for the grant of a special greenhouse gas holding lease over a block or blocks in relation to which the greenhouse gas assessment permit is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249BSB in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249BSB and 249BSC and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

249BSFA  Greenhouse gas holding lease transfer—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a greenhouse gas holding lease is registered under section 298‑262:

                     (a)  after an application has been made under section 249BSA for the grant of a special greenhouse gas holding lease over a block or blocks in relation to which the first‑mentioned greenhouse gas holding lease is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249BSB in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249BSB and 249BSC and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

Subdivision DApplication for greenhouse gas holding lease by the holder of a retention lease

249BSG  Application for greenhouse gas holding lease by the holder of a retention lease

             (1)  If:

                     (a)  a retention lease is in force over a block or blocks; and

                     (b)  one or more identified greenhouse gas storage formations are wholly situated in the lease area;

the lessee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas holding lease over the block or blocks.

             (2)  An application under this section must be accompanied by such information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Variation of application

             (3)  At any time before an offer document relating to the application is given to the applicant, the applicant may, by written notice given to the responsible Commonwealth Minister, vary the application.

             (4)  A variation of an application must be made in the approved manner.

             (5)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

             (6)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

             (7)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

249BSH  Grant of greenhouse gas holding lease—offer document

Scope

             (1)  This section applies if an application for a greenhouse gas holding lease has been made under section 249BSG.

Offer document

             (2)  The responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas holding lease over the block or blocks covered by the application.

Note 1:       Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 2:       If the applicant breaches a requirement under section 249JD to provide further information, the responsible Commonwealth Minister may refuse to give the applicant an offer document—see subsection 249JD(3).

249BSI  Grant of greenhouse gas holding lease

                   If:

                     (a)  an applicant has been given an offer document under section 249BSH; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas holding lease over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

249BSJ  Retention lease transfer—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a retention lease is registered under section 262:

                     (a)  after an application has been made under section 249BSG for the grant of a greenhouse gas holding lease over a block or blocks in relation to which the retention lease is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249BSH in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249BSH and 249BSI and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

Division 3Renewal of greenhouse gas holding leases

249BT  Application for renewal of greenhouse gas holding lease

Application for renewal

             (1)  The registered holder of a greenhouse gas holding lease (other than a special greenhouse gas holding lease) may apply to the responsible Commonwealth Minister for the renewal by the responsible Commonwealth Minister of the lease.

             (2)  A greenhouse gas holding lease cannot be renewed more than once.

             (3)  An application to renew a greenhouse gas holding lease must be made:

                     (a)  not more than 12 months before the expiry date of the lease; and

                     (b)  at least 180 days before the expiry date of the lease.

             (4)  Despite subsection (3), the responsible Commonwealth Minister may accept an application to renew a greenhouse gas holding lease if the application is made:

                     (a)  later than 180 days before the expiry date of the lease; and

                     (b)  before the expiry date of the lease.

             (5)  An application to renew a greenhouse gas holding lease must be accompanied by details of:

                     (a)  the lessee’s proposals for work and expenditure in relation to the lease area; and

                     (b)  such other information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Extension of duration of greenhouse gas holding lease pending decision on application

             (6)  If:

                     (a)  a greenhouse gas holding lessee makes an application to renew the lease; and

                     (b)  the lease would, apart from this subsection, expire:

                              (i)  before the responsible Commonwealth Minister grants, or refuses to grant, the renewal of the lease; or

                             (ii)  before the application lapses as provided by section 249JF;

the lease continues in force:

                     (c)  until the responsible Commonwealth Minister grants, or refuses to grant, the renewal of the lease; or

                     (d)  until the application so lapses;

whichever happens first.

             (7)  Subsection (6) has effect subject to this Chapter but despite section 249BF.

Note:          See the notes at the end of section 249BF.

249BU  Renewal of greenhouse gas holding lease—offer document

Scope

             (1)  This section applies if an application to renew a greenhouse gas holding lease has been made under section 249BT.

Offer document—compliance with conditions etc.

             (2)  If:

                     (a)  each of the following has been complied with:

                              (i)  the conditions to which the greenhouse gas holding lease is, or has from time to time been, subject;

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1;

                            (iii)  the regulations; and

                     (b)  the responsible Commonwealth Minister is satisfied that the applicant is not, at the time of the application, in a position to:

                              (i)  inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                             (ii)  permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned;

                            but is likely to be in such a position within 10 years;

the responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to renew the lease.

Note:          Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Offer document—non‑compliance with conditions etc.

             (3)  If:

                     (a)  any of:

                              (i)  the conditions to which the greenhouse gas holding lease is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  the responsible Commonwealth Minister is satisfied that there are sufficient grounds to warrant the granting of the renewal of the greenhouse gas holding lease; and

                     (c)  the responsible Commonwealth Minister is satisfied that the applicant is not, at the time of the application, in a position to:

                              (i)  inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                             (ii)  permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned;

                            but is likely to be in such a position within 10 years;

the responsible Commonwealth Minister may give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to renew the lease.

Note:          Section 249JE sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

249BV  Refusal to renew greenhouse gas holding lease

Scope

             (1)  This section applies if an application to renew a greenhouse gas holding lease has been made under section 249BT.

Refusal on grounds of non‑compliance with conditions

             (2)  If:

                     (a)  any of:

                              (i)  the conditions to which the greenhouse gas holding lease is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  the responsible Commonwealth Minister is not satisfied that there are sufficient grounds to warrant the granting of the renewal of the greenhouse gas holding lease;

the responsible Commonwealth Minister must, by written notice given to the applicant, refuse to renew the lease.

Note:          Consultation procedures apply—see section 249JH.

Refusal on grounds that the applicant is in a position to inject and permanently store a greenhouse gas substance

             (3)  If the responsible Commonwealth Minister is satisfied that the applicant is, at the time of the application, in a position to:

                     (a)  inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                     (b)  permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned;

the responsible Commonwealth Minister must, by written notice given to the applicant, refuse to renew the lease.

Note:          Consultation procedures apply—see section 249JH.

             (4)  If:

                     (a)  the responsible Commonwealth Minister makes a decision under subsection (3) refusing to renew the lease; and

                     (b)  a notice of refusal is given to the applicant; and

                     (c)  within 12 months after the notice was given, the lessee applies for a greenhouse gas injection licence over one or more of the blocks comprised in the lease; and

                     (d)  the lease would, apart from this subsection, expire:

                              (i)  before the responsible Commonwealth Minister grants, or refuses to grant, the greenhouse gas injection licence; or

                             (ii)  before the application lapses;

the lease continues in force until:

                     (e)  the responsible Commonwealth Minister grants, or refuses to grant, the greenhouse gas injection licence; or

                      (f)  the application lapses;

whichever happens first.

             (5)  If:

                     (a)  the responsible Commonwealth Minister makes a decision under subsection (3) refusing to renew the lease; and

                     (b)  a notice of refusal is given to the applicant; and

                     (c)  subsection (4) does not apply; and

                     (d)  the lease would, apart from this subsection, expire within 12 months after the notice was given;

the lease continues in force until the end of the 12‑month period beginning on the day on which the notice was given.

             (6)  Subsections (4) and (5) have effect subject to this Chapter but despite section 249BF.

Note:          See the notes at the end of section 249BF.

249BW  Renewal of greenhouse gas holding lease

                   If:

                     (a)  an applicant has been given an offer document under section 249BU; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must renew the greenhouse gas holding lease.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

Division 4Directions

249BZ  Responsible Commonwealth Minister may give directions to greenhouse gas holding lessees

             (1)  The responsible Commonwealth Minister may, by written notice given to a greenhouse gas holding lessee, give the lessee a direction for the purpose of:

                     (a)  eliminating; or

                     (b)  mitigating; or

                     (c)  managing;

the risk that operations carried on under the lease could have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                     (d)  an existing exploration permit; or

                     (e)  an existing retention lease; or

                      (f)  an existing production licence; or

                     (g)  a future exploration permit; or

                     (h)  a future retention lease; or

                      (i)  a future production licence.

             (2)  A direction under this section has effect, and must be complied with, despite:

                     (a)  any previous direction under this section; and

                     (b)  anything in the regulations or the applied provisions.

             (3)  A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument:

                     (a)  as in force or existing at the time when the direction takes effect; or

                     (b)  as in force or existing from time to time;

so long as the code of practice or standard is relevant to that matter.

             (4)  To avoid doubt, subsection (3) applies to an instrument, whether issued or made in Australia or outside Australia.

             (5)  A direction under this section may prohibit the doing of an act or thing:

                     (a)  unconditionally; or

                     (b)  subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

             (6)  A direction under this section is not a legislative instrument.

249BZA  Compliance with directions

             (1)  A person commits an offence if:

                     (a)  the person is given a direction under section 249BZ; and

                     (b)  the person engages in conduct; and

                     (c)  the person’s conduct breaches the direction.

Penalty:  100 penalty units.

             (2)  An offence against subsection (1) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

Division 5Special greenhouse gas holding lessee may be requested to apply for a greenhouse gas injection licence

249BZB  Responsible Commonwealth Minister may request special greenhouse gas holding lessee to apply for a greenhouse gas injection licence

             (1)  If:

                     (a)  a special greenhouse gas holding lease is in force; and

                     (b)  one or more identified greenhouse gas storage formations are wholly situated in the lease area; and

                     (c)  the responsible Commonwealth Minister is satisfied that, if the lessee were to apply under section 249CH for the grant of a greenhouse gas injection licence over the block or blocks in which the identified greenhouse gas storage formation or formations are wholly situated, the responsible Commonwealth Minister would not refuse to grant the greenhouse gas injection licence on a ground covered by paragraph 249CI(2)(c), (d), (e), (f) or (g);

the responsible Commonwealth Minister may, by written notice given to the lessee:

                     (d)  request the lessee to notify the responsible Commonwealth Minister, within 180 days after the day on which the notice is given to the lessee, of the lessee’s intention to apply for the greenhouse gas injection licence; and

                     (e)  request the lessee to apply for the greenhouse gas injection licence within 2 years after the day on which the notice is given to the lessee.

             (2)  If the lessee does not comply with a request under subsection (1), the responsible Commonwealth Minister may cancel the lease.

Division 6Cancellation of certain greenhouse gas holding leases granted to the holders of retention leases

249BZC  Cancellation of certain greenhouse gas holding leases granted to the holders of retention leases

Scope

             (1)  This section applies if:

                     (a)  a greenhouse gas holding lease is tied to a retention lease; and

                     (b)  the retention lease is cancelled, surrendered or wholly revoked.

Cancellation of greenhouse gas holding lease

             (2)  The responsible Commonwealth Minister must cancel the greenhouse gas holding lease.

Part 2A.4Greenhouse gas injection licences

Division 1General provisions

249CB  Simplified outline

                   The following is a simplified outline of this Part:

•      It is an offence to:

               (a)     inject a substance into the seabed or subsoil of an offshore area; or

               (b)     store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area;

       except:

               (c)     under a greenhouse gas injection licence; or

               (d)     as otherwise authorised or required by or under this Act or any other law of the Commonwealth; or

               (e)     if the injection or storage operations are specified in the regulations.

•      This Part provides for the grant of greenhouse gas injection licences over blocks in an offshore area.

•      A greenhouse gas injection licence authorises the licensee to carry out operations for the injection and permanent storage of greenhouse gas substances in the licence area, so long as the greenhouse gas substance is injected into, or permanently stored in, an identified greenhouse gas storage formation.

•      There are 2 ways in which a greenhouse gas injection licence can be granted:

               (a)     grant of a greenhouse gas injection licence as a result of an application made by a greenhouse gas assessment permittee or greenhouse gas holding lessee;

               (b)     grant of a greenhouse gas injection licence as a result of an application made by a production licensee.

249CC  Prohibition of unauthorised injection and storage of substances in offshore area

             (1)  A person commits an offence if:

                     (a)  the person carries on operations to inject a substance into the seabed or subsoil of an offshore area; or

                     (b)  the person carries on operations to store (whether on a permanent basis or otherwise) a substance in the seabed or subsoil of an offshore area.

Penalty:  Imprisonment for 5 years.

             (2)  Subsection (1) does not apply if the operations are:

                     (a)  authorised by a greenhouse gas injection licence; or

                     (b)  otherwise authorised or required by or under:

                              (i)  this Act; or

                             (ii)  any other law of the Commonwealth; or

                     (c)  specified in the regulations.

Note:          The defendant bears an evidential burden in relation to the matter in subsection (2)—see subsection 13.3(3) of the Criminal Code.

249CD  Rights conferred by greenhouse gas injection licence

             (1)  A greenhouse gas injection licence authorises the licensee, in accordance with the conditions (if any) to which the licence is subject:

                     (a)  to inject a greenhouse gas substance into an identified greenhouse gas storage formation that is wholly situated in the licence area, so long as the relevant well is situated in the licence area; and

                     (b)  to permanently store a greenhouse gas substance in an identified greenhouse gas storage formation that is wholly situated in the licence area, so long as the injection of the stored greenhouse gas substance takes place at a well situated in the licence area; and

                     (c)  to explore in the licence area for a potential greenhouse gas storage formation; and

                     (d)  to explore in the licence area for a potential greenhouse gas injection site; and

                     (e)  to inject, on an appraisal basis, a greenhouse gas substance into a part of a geological formation, so long as the relevant well is situated in the licence area; and

                      (f)  to store, on an appraisal basis, a greenhouse gas substance in a part of a geological formation, so long as the injection of the stored greenhouse gas substance takes place at a well situated in the licence area; and

                     (g)  to inject, on an appraisal basis:

                              (i)  air; or

                             (ii)  petroleum; or

                            (iii)  water;

                            into a part of a geological formation for purposes in connection with the exploration authorised by paragraph (c) or (d), so long as the relevant well is situated in the licence area; and

                     (h)  to store, on an appraisal basis:

                              (i)  air; or

                             (ii)  petroleum; or

                            (iii)  water;

                            in a part of a geological formation for purposes in connection with the exploration authorised by paragraph (c) or (d), so long as the injection of the stored air, petroleum or water takes place at a well situated in the licence area; and

                      (i)  with the written consent of the responsible Commonwealth Minister, to recover petroleum in the licence area for the sole purpose of appraising a discovery of petroleum that was made as an incidental consequence of:

                              (i)  the injection authorised by paragraph (a), (e) or (g); or

                             (ii)  the exploration authorised by paragraph (c) or (d); and

                      (j)  to carry on such operations, and execute such works, in the licence area as are necessary for those purposes.

             (2)  The rights conferred on the licensee by subsection (1) are subject to this Act and the regulations.

             (3)  If petroleum is recovered by the licensee in the licence area as authorised by paragraph (1)(i), the petroleum does not become the property of the licensee.

             (4)  A greenhouse gas injection licence does not authorise the licensee to make a well outside the licence area.

249CE  Conditions of greenhouse gas injection licences

             (1)  The responsible Commonwealth Minister may grant a greenhouse gas injection licence subject to whatever conditions the responsible Commonwealth Minister thinks appropriate.

             (2)  The conditions (if any) must be specified in the licence.

Injection and storage of greenhouse gas substance

             (3)  A greenhouse gas injection licence is subject to the condition that the licensee will not:

                     (a)  inject a greenhouse gas substance into an identified greenhouse gas storage formation that is wholly situated in the licence area; or

                     (b)  permanently store a greenhouse gas substance in an identified greenhouse gas storage formation that is wholly situated in the licence area;

unless:

                     (c)  the identified greenhouse gas storage formation is specified in the licence; and

                     (d)  the greenhouse gas substance is of a kind that is specified in the licence; and

                     (e)  the greenhouse gas substance complies with such requirements (if any) as are specified in the licence; and

                      (f)  the origin or origins of the greenhouse gas substance are as specified in the licence; and

                     (g)  the greenhouse gas substance is injected at a potential greenhouse gas injection site or sites specified in the licence; and

                     (h)  the greenhouse gas substance is injected during a period specified in the licence; and

                      (i)  the sum of:

                              (i)  the total amount of greenhouse gas substance that has already been injected into the identified greenhouse gas storage formation; and

                             (ii)  the total amount of greenhouse gas substance that is proposed to be injected into the identified greenhouse gas storage formation;

                            does not exceed the amount specified in the licence; and

                      (j)  the rate, or range of rates, of injection of the greenhouse gas substance is as specified in the licence; and

                     (k)  in a case where the fundamental suitability determinants of the identified greenhouse gas storage formation include particular engineering enhancements—those engineering enhancements have been made.

             (4)  The matters specified in the licence as mentioned in paragraphs (3)(d) to (k) must not be inconsistent with the fundamental suitability determinants of the identified greenhouse gas storage formation concerned.

             (5)  To avoid doubt, 2 or more identified greenhouse gas storage formations may be specified in a greenhouse gas injection licence as mentioned in paragraph (3)(c).

             (6)  If 2 or more identified greenhouse gas storage formations are specified in a greenhouse gas injection licence, different matters may be specified in the licence as mentioned in paragraphs (3)(d) to (j) for different identified greenhouse gas storage formations.

             (7)  For the purposes of paragraph (3)(f), disregard any incidental greenhouse gas‑related substances in determining the origin of a greenhouse gas substance.

          (7A)  If a greenhouse gas injection licence is granted under section 249CRB to the registered holder of a production licence, the origin or origins specified under paragraph (3)(f) of this section must be situated in the licence area of the production licence.

          (7B)  If a greenhouse gas injection licence is tied to a production licence, the origin or origins specified under paragraph (3)(f) of this section must be situated in the licence area of the production licence.

             (8)  The condition mentioned in subsection (3) must be specified in the licence.

Securities

             (9)  A greenhouse gas injection licence is subject to the condition that, if the licensee is given a notice under section 249NCA, the licensee will comply with the notice.

Access regime

           (10)  A greenhouse gas injection licence is subject to the condition that, if:

                     (a)  regulations are made for the purposes of subsection (11); and

                     (b)  those regulations impose requirements on the licensee;

the licensee will comply with those requirements.

           (11)  The regulations may establish a regime for third party access to services provided by means of the use of:

                     (a)  identified greenhouse gas storage formations; or

                     (b)  wells, equipment or structures for use in injecting greenhouse gas substances into identified greenhouse gas storage formations; or

                     (c)  equipment or structures for use in the processing, compressing or storing of greenhouse gas substances prior to the injection of the substances into identified greenhouse gas storage formations.

Imposition of additional conditions

           (12)  The responsible Commonwealth Minister may, by written notice given to the registered holder of a greenhouse gas injection licence, vary the licence by imposing one or more conditions to which the licence is subject.

           (13)  A variation of a greenhouse gas injection licence under subsection (12) takes effect on the day on which notice of the variation is given to the licensee.

           (14)  If:

                     (a)  a greenhouse gas injection licence is subject to a condition; and

                     (b)  the condition was imposed under subsection (12);

the responsible Commonwealth Minister may, by written notice given to the licensee, vary or revoke the condition.

           (15)  A variation of a greenhouse gas injection licence under subsection (14) takes effect on the day on which notice of the variation is given to the licensee.

           (16)  Subsection (15) does not limit section 249KA.

Other provisions

           (17)  Despite subsection (2), the conditions mentioned in subsections (9) and (10) do not need to be specified in the licence.

           (18)  Subsections (3), (9) and (10) do not limit subsection (1) or (12).

249CF  Duration of greenhouse gas injection licence

             (1)  A greenhouse gas injection licence remains in force indefinitely.

             (2)  Subsection (1) has effect subject to this Chapter.

Note 1:       For a special rule about when a greenhouse gas injection licence ceases to be in force following the grant of a greenhouse gas holding lease, see section 249BR.

Note 2:       For the termination of a greenhouse gas injection licence if there have been no injection operations for 5 years, see section 249CG.

Note 3:       For the surrender of a greenhouse gas injection licence, see Part 2A.10.

Note 4:       For the cancellation of a greenhouse gas injection licence, see Part 2A.11.

249CG  Termination of greenhouse gas injection licence if no injection operations for 5 years

Scope

             (1)  This section applies to a greenhouse gas injection licence if:

                     (a)  both:

                              (i)  a single identified greenhouse gas storage formation is specified in the licence; and

                             (ii)  no operations to inject a greenhouse gas substance into the identified greenhouse gas storage formation have been carried on under the licence at any time during a continuous period of at least 5 years; or

                     (b)  both:

                              (i)  2 or more identified greenhouse gas storage formations are specified in the licence; and

                             (ii)  no operations to inject a greenhouse gas substance into any of those identified greenhouse gas storage formations have been carried on under the licence at any time during a continuous period of at least 5 years.

Termination of licence

             (2)  The responsible Commonwealth Minister may, by written notice given to the licensee, tell the licensee that the responsible Commonwealth Minister proposes to terminate the licence after the end of 30 days after the notice is given.

             (3)  At any time after the end of 30 days after the notice is given to the licensee, the responsible Commonwealth Minister may, by written notice given to the licensee, terminate the licence.

Note:          For remedial directions following termination, see section 316‑312.

             (4)  In working out, for the purposes of this section, the period in which no operations to inject a greenhouse gas substance into an identified greenhouse gas storage formation were carried on under a greenhouse gas injection licence, disregard:

                     (a)  any period in which no such operations were carried on because of circumstances beyond the licensee’s control; and

                     (b)  any period in which no such operations were carried on because of a suspension under section 249CZC.

             (5)  For the purposes of paragraph (4)(a), the failure to obtain a greenhouse gas substance for injection into an identified greenhouse gas storage formation is not a circumstance beyond the licensee’s control.

Consultation

             (6)  The responsible Commonwealth Minister may give a copy of a notice under subsection (2) to such other persons (if any) as the responsible Commonwealth Minister thinks fit.

             (7)  A notice under subsection (2) must:

                     (a)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the responsible Commonwealth Minister about the proposal to terminate the licence; and

                     (b)  specify a time limit for making that submission.

             (8)  In deciding whether to terminate the licence, the responsible Commonwealth Minister must take into account any submissions made in accordance with the notice.

Division 2Obtaining a greenhouse gas injection licence

Subdivision AApplication for greenhouse gas injection licence by the holder of a greenhouse gas assessment permit or greenhouse gas holding lease

249CH  Application for greenhouse gas injection licence by greenhouse gas assessment permittee or greenhouse gas holding lessee

Scope

             (1)  This section applies if:

                     (a)  a greenhouse gas assessment permit or greenhouse gas holding lease is in force; and

                     (b)  one or more identified greenhouse gas storage formations are wholly situated in the permit area or lease area.

Single identified greenhouse gas storage formation

             (2)  If a single identified greenhouse gas storage formation extends to:

                     (a)  only one block in the permit area or lease area; or

                     (b)  2 or more blocks in the permit area or lease area;

the permittee or lessee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formation extends.

Multiple identified greenhouse gas storage formations

             (3)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to only one block in the permit area or lease area; and

                     (b)  a vertical line would not pass through a point in each of those identified greenhouse gas storage formations;

the permittee or lessee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the block to which the identified greenhouse gas storage formations extend.

             (4)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to:

                              (i)  only one block in the permit area or lease area; or

                             (ii)  2 or more blocks in the permit area or lease area; and

                     (b)  a vertical line would pass through a point in each of those identified greenhouse gas storage formations;

the permittee or lessee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend.

             (5)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to 2 or more blocks in the permit area or lease area; and

                     (b)  a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

                     (c)  for each identified greenhouse gas storage formation, at least one of the blocks to which the identified greenhouse gas storage formation extends immediately adjoins a block to which the other, or another, of those identified greenhouse gas storage formations extends;

the permittee or lessee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the blocks to which the identified greenhouse gas storage formations, when considered together, extend.

             (6)  For the purposes of subsection (5), a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block:

                     (a)  have a side in common; or

                     (b)  are joined together at one point only.

Limit on application

          (6A)  If a greenhouse gas holding lease was granted under section 249BSI (or was granted by way of renewal of such a lease), the lessee is not entitled to make an application under this section unless:

                     (a)  the greenhouse gas holding lease is tied to a production licence; and

                     (b)  the lessee is the registered holder of the production licence.

Application

             (7)  An application under this section must set out, for each identified greenhouse gas storage formation, each of the matters which the applicant seeks to have specified in the licence as mentioned in paragraphs 249CE(3)(d) to (k).

             (8)  The matters set out in the application in accordance with subsection (7) must not be inconsistent with the fundamental suitability determinants of the identified greenhouse gas storage formation concerned.

             (9)  An application under this section must be accompanied by:

                     (a)  a draft site plan for the identified greenhouse gas storage formation or draft site plans for each of the identified greenhouse gas storage formations; and

                     (b)  details of the applicant’s proposals for work and expenditure in relation to:

                              (i)  if there is a single identified greenhouse gas storage formation—the block or blocks, as the case may be, to which the identified greenhouse gas storage formation extends; or

                             (ii)  if there are 2 or more identified greenhouse gas storage formations—the block or blocks, as the case may be, to which the identified greenhouse gas storage formations, when considered together, extend; and

                     (c)  details of:

                              (i)  the technical qualifications of the applicant and of the applicant’s employees; and

                             (ii)  the technical advice available to the applicant; and

                            (iii)  the financial resources available to the applicant; and

                     (d)  such other information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Variation of application

           (10)  At any time before an offer document, or a notice of refusal, relating to the application is given to the applicant, the applicant may, by written notice given to the responsible Commonwealth Minister, vary the application.

           (11)  A variation of an application must be made in the approved manner.

           (12)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

           (13)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

           (14)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

249CI  Offer document

Application by permittee

             (1)  If:

                     (a)  an application for the grant of a greenhouse gas injection licence has been made under section 249CH by a greenhouse gas assessment permittee; and

                     (b)  the responsible Commonwealth Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to:

                              (i)  inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                             (ii)  permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                     (c)  if the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                              (i)  an existing post‑commencement exploration permit; or

                             (ii)  an existing post‑commencement retention lease (other than a retention lease granted under section 126); or

                            (iii)  a future post‑commencement production licence over the block or any of the blocks to which an existing post‑commencement exploration permit, or an existing post‑commencement retention lease (other than a retention lease granted under section 126), relates;

                            the responsible Commonwealth Minister is satisfied that the grant of the greenhouse gas injection licence is in the public interest; and

                     (d)  if the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                              (i)  an existing pre‑commencement petroleum title held by a person other than the applicant; or

                             (ii)  an existing production licence held by a person other than the applicant;

                            the responsible Commonwealth Minister is satisfied that:

                            (iii)  the registered holder of the pre‑commencement petroleum title or the production licence, as the case may be, has agreed, in writing, to the grant of the greenhouse gas injection licence; and

                            (iv)  to the extent to which the agreement is a dealing to which Part 3.6 applies—the dealing has been approved under section 275 or is reasonably likely to be approved under that section; and

                             (v)  to the extent to which the agreement is a dealing to which Part 3A.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 298‑275; and

                     (e)  if:

                              (i)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre‑commencement petroleum title over a block or blocks; and

                             (ii)  the existing pre‑commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant;

                            the responsible Commonwealth Minister is satisfied that:

                            (iii)  the registered holder of the existing pre‑commencement petroleum title has agreed, in writing, to the grant of the greenhouse gas injection licence; and

                            (iv)  to the extent to which the agreement is a dealing to which Part 3.6 applies—the dealing has been approved under section 275 or is reasonably likely to be approved under that section; and

                             (v)  to the extent to which the agreement is a dealing to which Part 3.6 would apply if the future pre‑commencement petroleum title were to come into existence—it is reasonably likely that the dealing would, after the future pre‑commencement petroleum title comes into existence, be approved under section 275; and

                            (vi)  to the extent to which the agreement is a dealing to which Part 3A.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 298‑275; and

                      (f)  if:

                              (i)  the responsible Commonwealth Minister is satisfied that the area comprised in the block, or any one or more of the blocks, specified in the application contains petroleum; and

                             (ii)  the block or blocks as to which the responsible Commonwealth Minister is so satisfied are within the licence area of a production licence, the permit area of a pre‑commencement exploration permit or the lease area of a pre‑commencement retention lease; and

                            (iii)  the recovery of the petroleum passes the commercial viability test set out in subsection (5);

                            the responsible Commonwealth Minister is satisfied that there is no significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on operations to recover the petroleum; and

                     (g)  the responsible Commonwealth Minister is satisfied that:

                              (i)  the technical qualifications of the applicant and of the applicant’s employees; and

                             (ii)  the technical advice available to the applicant; and

                            (iii)  the financial resources available to the applicant;

                            are adequate; and

                     (h)  the responsible Commonwealth Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations;

the responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in paragraphs 249CE(3)(d) to (k) will be in accordance with the application.

Application by lessee

             (2)  If:

                     (a)  an application for the grant of a greenhouse gas injection licence has been made under section 249CH by a greenhouse gas holding lessee; and

                     (b)  the responsible Commonwealth Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to:

                              (i)  inject a greenhouse gas substance into the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                             (ii)  permanently store the greenhouse gas substance in the identified greenhouse gas storage formation, or at least one of the identified greenhouse gas storage formations, concerned; and

                     (c)  if the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                              (i)  an existing post‑commencement exploration permit; or

                             (ii)  an existing post‑commencement retention lease (other than a retention lease granted under section 126); or

                            (iii)  a future post‑commencement production licence over the block or any of the blocks to which an existing post‑commencement exploration permit, or an existing post‑commencement retention lease (other than a retention lease granted under section 126), relates;

                            the responsible Commonwealth Minister is satisfied that the grant of the greenhouse gas injection licence is in the public interest; and

                     (d)  if the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                              (i)  an existing pre‑commencement petroleum title held by a person other than the applicant; or

                             (ii)  an existing production licence held by a person other than the applicant;

                            the responsible Commonwealth Minister is satisfied that:

                            (iii)  the registered holder of the pre‑commencement petroleum title or the production licence, as the case may be, has agreed, in writing, to the grant of the greenhouse gas injection licence; and

                            (iv)  to the extent to which the agreement is a dealing to which Part 3.6 applies—the dealing has been approved under section 275 or is reasonably likely to be approved under that section; and

                             (v)  to the extent to which the agreement is a dealing to which Part 3A.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 298‑275; and

                     (e)  if:

                              (i)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre‑commencement petroleum title over a block or blocks; and

                             (ii)  the existing pre‑commencement petroleum title in force over the block or any of the blocks is held by a person other than the applicant;

                            the responsible Commonwealth Minister is satisfied that:

                            (iii)  the registered holder of the existing pre‑commencement petroleum title has agreed, in writing, to the grant of the greenhouse gas injection licence; and

                            (iv)  to the extent to which the agreement is a dealing to which Part 3.6 applies—the dealing has been approved under section 275 or is reasonably likely to be approved under that section; and

                             (v)  to the extent to which the agreement is a dealing to which Part 3.6 would apply if the future pre‑commencement petroleum title were to come into existence—it is reasonably likely that the dealing would, after the future pre‑commencement petroleum title comes into existence, be approved under section 275; and

                            (vi)  to the extent to which the agreement is a dealing to which Part 3A.6 would apply if the greenhouse gas injection licence were to come into existence—it is reasonably likely that the dealing would, after the greenhouse gas injection licence comes into existence, be approved under section 298‑275; and

                      (f)  if:

                              (i)  the responsible Commonwealth Minister is satisfied that the area comprised in the block, or any one or more of the blocks, specified in the application contains petroleum; and

                             (ii)  the block or blocks as to which the responsible Commonwealth Minister is so satisfied are within the licence area of a production licence, the permit area of a pre‑commencement exploration permit or the lease area of a pre‑commencement retention lease; and

                            (iii)  the recovery of the petroleum passes the commercial viability test set out in subsection (5);

                            the responsible Commonwealth Minister is satisfied that there is no significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on operations to recover the petroleum; and

                     (g)  the responsible Commonwealth Minister is satisfied that:

                              (i)  the technical qualifications of the applicant and of the applicant’s employees; and

                             (ii)  the technical advice available to the applicant; and

                            (iii)  the financial resources available to the applicant;

                            are adequate; and

                     (h)  the responsible Commonwealth Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations;

the responsible Commonwealth Minister must give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in paragraphs 249CE(3)(d) to (k) will be in accordance with the application.

Public interest

             (3)  For the purposes of paragraphs (1)(c) and (2)(c), in considering whether the grant of the greenhouse gas injection licence is in the public interest, the responsible Commonwealth Minister must have regard to:

                     (a)  whether the registered holder of the existing post‑commencement exploration permit or existing post‑commencement retention lease, as the case may be, has agreed, in writing, to the grant of the greenhouse gas injection licence; and

                     (b)  if so—the terms of that agreement.

             (4)  Subsection (3) does not limit the matters to which the responsible Commonwealth Minister may have regard.

Commercial viability test

             (5)  For the purposes of subparagraphs (1)(f)(iii) and (2)(f)(iii), the recovery of petroleum passes the commercial viability test if, and only if, the responsible Commonwealth Minister is satisfied that:

                     (a)  the recovery is commercially viable; or

                     (b)  the recovery is not commercially viable, but is likely to become commercially viable within 15 years.

Deferral of decision

             (6)  This section has effect subject to section 249CK.

249CJ  Refusal to grant greenhouse gas injection licence

Scope

             (1)  This section applies if:

                     (a)  an application for a greenhouse gas injection licence has been made under section 249CH; and

                     (b)  the responsible Commonwealth Minister is not required by section 249CI to give the applicant an offer document.

Notice

             (2)  The responsible Commonwealth Minister must, by written notice given to the applicant, refuse to grant the applicant a greenhouse gas injection licence.

Deferral of decision

             (3)  This section has effect subject to section 249CK.

249CJA  Grant of greenhouse gas injection licence

                   If:

                     (a)  an applicant has been given an offer document under section 249CI; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas injection licence over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

249CK  Deferral of decision to grant greenhouse gas injection licence—pending application for post‑commencement exploration permit

Scope

             (1)  This section applies if:

                     (a)  an application for the grant of a greenhouse gas injection licence has been made under section 249CH; and

                     (b)  when the application for the greenhouse gas injection licence was made, an application for a post‑commencement exploration permit was being considered by the Joint Authority; and

                     (c)  the responsible Commonwealth Minister considers that it would be in the public interest to defer taking any action under section 249CI or 249CJ in relation to the application for the grant of the greenhouse gas injection licence until the application for the post‑commencement exploration permit is finalised.

Deferral

             (2)  The responsible Commonwealth Minister must not take any action under section 249CI or 249CJ in relation to the application for the greenhouse gas injection licence until 24 hours after whichever of the following events happens first:

                     (a)  the Joint Authority grants the post‑commencement exploration permit to the applicant for the permit;

                     (b)  the application for the post‑commencement exploration permit lapses;

                     (c)  the Joint Authority refuses to grant the post‑commencement exploration permit to the applicant for the permit.

249CO  Greenhouse gas assessment permit or greenhouse gas holding lease ceases to be in force when greenhouse gas injection licence comes into force

                   When a greenhouse gas injection licence under section 249CJA comes into force in relation to one or more blocks, a greenhouse gas assessment permit or greenhouse gas holding lease ceases to be in force to the extent to which it relates to those blocks.

249CP  Greenhouse gas assessment permit transfer—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a greenhouse gas assessment permit is registered under section 298‑262:

                     (a)  after an application has been made under section 249CH for the grant of a greenhouse gas injection licence over a block or blocks in relation to which the greenhouse gas assessment permit is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249CI or 249CJ in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249CH to 249CJA and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

249CPA  Greenhouse gas holding lease transfer—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a greenhouse gas holding lease is registered under section 298‑262:

                     (a)  after an application has been made under section 249CH for the grant of a greenhouse gas injection licence over a block or blocks in relation to which the greenhouse gas holding lease is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249CI or 249CJ in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249CH to 249CJA and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

Subdivision BApplication for greenhouse gas injection licence by the holder of a production licence

249CQ  Application for greenhouse gas injection licence by the holder of a production licence

Scope

             (1)  This section applies if:

                     (a)  a production licence is in force; and

                     (b)  one or more identified greenhouse gas storage formations are wholly situated in the licence area.

Single identified greenhouse gas storage formation

             (2)  If:

                     (a)  a single identified greenhouse gas storage formation extends to:

                              (i)  only one block in the licence area; or

                             (ii)  2 or more blocks in the licence area; and

                     (b)  none of the following is in force over the block or blocks to which the identified greenhouse gas storage formation extends:

                              (i)  a greenhouse gas injection licence;

                             (ii)  a greenhouse gas holding lease;

                            (iii)  a greenhouse gas assessment permit;

the production licensee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formation extends.

Multiple identified greenhouse gas storage formations

             (3)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to only one block in the licence area; and

                     (b)  a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

                     (c)  none of the following is in force over the block to which the identified greenhouse gas storage formations, when considered together, extend:

                              (i)  a greenhouse gas injection licence;

                             (ii)  a greenhouse gas holding lease;

                            (iii)  a greenhouse gas assessment permit;

the production licensee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the block to which the identified greenhouse gas storage formations, when considered together, extend.

             (4)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to:

                              (i)  only one block in the licence area; or

                             (ii)  2 or more blocks in the licence area; and

                     (b)  a vertical line would pass through a point in each of those identified greenhouse gas storage formations; and

                     (c)  none of the following is in force over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend:

                              (i)  a greenhouse gas injection licence;

                             (ii)  a greenhouse gas holding lease;

                            (iii)  a greenhouse gas assessment permit;

the production licensee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the block or blocks to which the identified greenhouse gas storage formations, when considered together, extend.

             (5)  If:

                     (a)  2 or more identified greenhouse gas storage formations, when considered together, extend to 2 or more blocks in the licence area; and

                     (b)  a vertical line would not pass through a point in each of those identified greenhouse gas storage formations; and

                     (c)  for each identified greenhouse gas storage formation, at least one of the blocks to which the identified greenhouse gas storage formation extends immediately adjoins a block to which the other, or another, of those identified greenhouse gas storage formations extends; and

                     (d)  none of the following is in force over the blocks to which the identified greenhouse gas storage formations, when considered together, extend:

                              (i)  a greenhouse gas injection licence;

                             (ii)  a greenhouse gas holding lease;

                            (iii)  a greenhouse gas assessment permit;

the production licensee may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas injection licence over the blocks to which the identified greenhouse gas storage formations, when considered together, extend.

             (6)  For the purposes of subsection (5), a block immediately adjoins another block if the graticular section that constitutes or includes that block and the graticular section that constitutes or includes that other block:

                     (a)  have a side in common; or

                     (b)  are joined together at one point only.

Application

             (7)  An application under this section must set out, for each identified greenhouse gas storage formation, each of the matters which the applicant seeks to have specified in the licence as mentioned in paragraphs 249CE(3)(d) to (k).

             (8)  The matters set out in the application in accordance with subsection (7) must not be inconsistent with the fundamental suitability determinants of the identified greenhouse gas storage formation concerned.

             (9)  An application under this section must be accompanied by:

                     (a)  a draft site plan for the identified greenhouse gas storage formation or draft site plans for each of the identified greenhouse gas storage formations; and

                     (b)  details of the applicant’s proposals for work and expenditure in relation to:

                              (i)  if there is a single identified greenhouse gas storage formation—the block or blocks, as the case may be, to which the identified greenhouse gas storage formation extends; or

                             (ii)  if there are 2 or more identified greenhouse gas storage formations—the block or blocks, as the case may be, to which the identified greenhouse gas storage formations, when considered together, extend; and

                     (c)  details of:

                              (i)  the technical qualifications of the applicant and of the applicant’s employees; and

                             (ii)  the technical advice available to the applicant; and

                            (iii)  the financial resources available to the applicant; and

                     (d)  such other information (if any) as is specified in the regulations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

Variation of application

           (10)  At any time before an offer document, or a notice of refusal, relating to the application is given to the applicant, the applicant may, by written notice given to the responsible Commonwealth Minister, vary the application.

           (11)  A variation of an application must be made in the approved manner.

           (12)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

           (13)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

           (14)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

249CR  Grant of greenhouse gas injection licence—offer document

                   If:

                     (a)  an application for a greenhouse gas injection licence has been made under section 249CQ by the registered holder of a production licence; and

                     (b)  the responsible Commonwealth Minister is satisfied that, if the greenhouse gas injection licence were granted to the applicant, the applicant will, within 5 years after the grant, commence operations to:

                              (i)  inject a greenhouse gas substance into the identified greenhouse gas storage formation or formations concerned; and

                             (ii)  permanently store the greenhouse gas substance in the identified greenhouse gas storage formation or formations concerned; and

                     (c)  either:

                              (i)  the responsible Commonwealth Minister is satisfied that all of the greenhouse gas substance injected into the identified greenhouse gas storage formation or formations concerned will be obtained as a by-product of petroleum recovery operations carried on under the production licence; or

                             (ii)  the responsible Commonwealth Minister is satisfied that some or all of the greenhouse gas substance injected into the identified greenhouse gas storage formation or formations concerned will be obtained as a by-product of petroleum recovery operations carried on under any production licence, and that the grant of the greenhouse gas injection licence is in the public interest; and

                     (d)  if the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under:

                              (i)  an existing post‑commencement exploration permit; or

                             (ii)  an existing post‑commencement retention lease (other than a retention lease granted under section 126); or

                            (iii)  a future post‑commencement production licence over the block or any of the blocks to which an existing post‑commencement exploration permit, or an existing post‑commencement retention lease (other than a retention lease granted under section 126), relates;

                            the responsible Commonwealth Minister is satisfied that:

                            (iv)  the grant of the greenhouse gas injection licence is in the public interest; or

                             (v)  the registered holder of the exploration permit or retention lease, as the case may be, has agreed, in writing, to the grant of the greenhouse gas injection licence to the applicant; and

                     (e)  if the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that are being, or could be, carried on under an existing pre‑commencement petroleum title—the responsible Commonwealth Minister is satisfied that the registered holder of the pre‑commencement petroleum title has agreed, in writing, to the grant of the greenhouse gas injection licence to the applicant; and

                      (f)  if:

                              (i)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on petroleum exploration operations, or petroleum recovery operations, that could be carried on under a future pre‑commencement petroleum title over a block or blocks; and

                             (ii)  an exploration permit, retention lease or production licence is in force over the block or any of the blocks;

                            the responsible Commonwealth Minister is satisfied that the registered holder of the exploration permit, retention lease or production licence covered by subparagraph (ii) has agreed, in writing, to the grant of the greenhouse gas injection licence; and

                     (g)  if the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that could be carried on under the greenhouse gas injection licence will have a significant adverse impact on:

                              (i)  petroleum explorations operations; or

                             (ii)  petroleum recovery operations;

                            that are being, or could be, carried on under an existing production licence held by a person other than the applicant—the responsible Commonwealth Minister is satisfied that the registered holder of the production licence has agreed, in writing, to the grant of the greenhouse gas injection licence to the applicant; and

                     (h)  the responsible Commonwealth Minister is satisfied that:

                              (i)  the technical qualifications of the applicant and of the applicant’s employees; and

                             (ii)  the technical advice available to the applicant; and

                            (iii)  the financial resources available to the applicant;

                            are adequate; and

                      (i)  the responsible Commonwealth Minister is satisfied that the draft site plan that accompanied the application satisfies the criteria specified in the regulations;

the responsible Commonwealth Minister may give the applicant a written notice (called an offer document) telling the applicant that the responsible Commonwealth Minister is prepared to grant the applicant a greenhouse gas injection licence over the block or blocks specified in the application, on the basis that the matters to be specified in the greenhouse gas injection licence as mentioned in paragraphs 249CE(3)(d) to (k) will be in accordance with the application.

249CRA  Refusal to grant greenhouse gas injection licence

Scope

             (1)  This section applies if:

                     (a)  an application for a greenhouse gas injection licence has been made under section 249CQ; and

                     (b)  the responsible Commonwealth Minister refuses to give the applicant an offer document.

Notice

             (2)  The responsible Commonwealth Minister must, by written notice given to the applicant, refuse to grant the applicant a greenhouse gas injection licence.

249CRB  Grant of greenhouse gas injection licence

                   If:

                     (a)  an applicant has been given an offer document under section 249CR; and

                     (b)  the applicant has made a request under section 249JF in relation to the offer document within the period applicable under that section; and

                     (c)  if the offer document specified the form and amount of a security to be lodged by the applicant—the applicant has lodged the security within the period applicable under section 249JGAA;

the responsible Commonwealth Minister must grant the applicant a greenhouse gas injection licence over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 249JF within the period applicable under that section, the application lapses at the end of that period—see subsection 249JF(4).

Note 2:       If the applicant has not lodged the security within the period applicable under section 249JGAA, the application lapses at the end of that period—see section 249JGAA.

249CRE  Production licence transferred—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a production licence is registered under section 262:

                     (a)  after an application has been made under section 249CQ for the grant of a greenhouse gas injection licence over a block or blocks in relation to which the production licence is in force; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249CR or 249CRA in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249CQ to 249CRB and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

Division 3Variations

249CT  Variation of matters specified in greenhouse gas injection licence—general

Application

             (1)  A greenhouse gas injection licensee may apply to the responsible Commonwealth Minister for the variation by the responsible Commonwealth Minister of a matter specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k).

Note 1:       Consultation procedures apply—see section 249JH.

Note 2:       Part 2A.8 contains additional provisions about application procedures.

Note 3:       Section 249JB requires the application to be accompanied by an application fee.

Note 4:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

             (2)  An application under subsection (1) must:

                     (a)  set out the proposed variation; and

                     (b)  specify the reasons for the proposed variation.

Variation

             (3)  If an application is made under subsection (1), the responsible Commonwealth Minister may, by written notice given to the licensee:

                     (a)  vary the matter in accordance with the application; or

                     (b)  refuse to vary the matter in accordance with the application.

             (4)  If a matter specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k) is varied under this section, the varied matter must not be inconsistent with the fundamental suitability determinants of the identified greenhouse gas storage formation concerned.

             (5)  A variation of a matter under this section takes effect on the day on which notice of the variation is published in the Gazette.

Note:          For publication in the Gazette of notice of the variation, see section 406‑418.

249CTA  Variation of matters specified in greenhouse gas injection licence—declaration of identified greenhouse gas storage formation varied

Scope

             (1)  This section applies in relation to a greenhouse gas injection licence if:

                     (a)  a declaration is in force under section 249AU in relation to an identified greenhouse gas storage formation that is wholly situated in the licence area; and

                     (b)  the declaration is varied under section 249AUA; and

                     (c)  apart from this section, a matter specified in the declaration would be inconsistent with a matter specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k).

Variation of a matter specified in the licence

             (2)  The responsible Commonwealth Minister must, by written notice given to the licensee, vary the matter specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k) for the purposes of removing that inconsistency.

             (3)  A variation of a matter under this section takes effect on the day on which notice of the variation is published in the Gazette.

Note:          For publication in the Gazette of notice of the variation, see section 406‑418.

Division 4Directions

249CXA  Responsible Commonwealth Minister may give greenhouse gas injection licensee directions to protect geological formations containing petroleum pools etc.

             (1)  The responsible Commonwealth Minister may, by written notice given to a greenhouse gas injection licensee, give the licensee a direction for the purpose of:

                     (a)  eliminating; or

                     (b)  mitigating; or

                     (c)  managing;

the risk that operations carried out under the licence could:

                     (d)  have a significant adverse impact on a geological formation, or a part of a geological formation, that contains, or is likely to contain, a petroleum pool; or

                     (e)  otherwise compromise the exploitation of any petroleum that occurs as a natural resource.

             (2)  A direction under this section may require the licensee to do something:

                     (a)  in the licence area; or

                     (b)  in an offshore area but outside the licence area.

             (3)  A direction under this section has effect, and must be complied with, despite:

                     (a)  any previous direction under this section; and

                     (b)  anything in the regulations or the applied provisions.

             (4)  A direction under this section prevails over:

                     (a)  anything in an approved site plan for an identified greenhouse gas storage formation specified in the licence; or

                     (b)  anything specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k);

to the extent of any inconsistency.

             (5)  A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument:

                     (a)  as in force or existing at the time when the direction takes effect; or

                     (b)  as in force or existing from time to time;

so long as the code of practice or standard is relevant to that matter.

             (6)  To avoid doubt, subsection (5) applies to an instrument, whether issued or made in Australia or outside Australia.

             (7)  A direction under this section may prohibit the doing of an act or thing:

                     (a)  unconditionally; or

                     (b)  subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

             (8)  A direction under this section is not a legislative instrument.

             (9)  If:

                     (a)  a direction under this section is in force in relation to a greenhouse gas injection licence; and

                     (b)  apart from subsection (4), the direction would be inconsistent with a matter specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k);

the responsible Commonwealth Minister may, by written notice given to the licensee, vary the matter for the purposes of removing that inconsistency.

           (10)  A variation of a matter under subsection (9) takes effect on the day on which notice of the variation is published in the Gazette.

Note:          For publication in the Gazette of notice of the variation, see section 406‑418.

           (11)  The regulations may provide that, if:

                     (a)  a direction under this section is in force in relation to a greenhouse gas injection licence; and

                     (b)  apart from subsection (4), the direction would be inconsistent with anything in an approved site plan for an identified greenhouse gas storage formation specified in the licence;

then:

                     (c)  the licensee must, within the period ascertained in accordance with the regulations:

                              (i)  prepare a draft variation of the approved site plan for the purposes of removing that inconsistency; and

                             (ii)  give the draft variation to the responsible Commonwealth Minister; and

                     (d)  the responsible Commonwealth Minister must, by written notice given to the licensee:

                              (i)  approve the variation; or

                             (ii)  refuse to approve the variation; and

                     (e)  if the responsible Commonwealth Minister approves the variation—the approved site plan is varied accordingly.

           (12)  If an approved site plan is varied, a reference in this Act to the approved site plan is a reference to the approved site plan as varied.

249CXB  Consultation—directions to do something outside the licence area

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to give a direction under section 249CXA to a greenhouse gas injection licensee; and

                     (b)  the direction requires the licensee to do something in an area (the action area) in an offshore area but outside the licence area; and

                     (c)  the action area is, to any extent, the subject of:

                              (i)  a greenhouse gas assessment permit; or

                             (ii)  a greenhouse gas holding lease; or

                            (iii)  a greenhouse gas injection licence; or

                            (iv)  a greenhouse gas search authority; or

                             (v)  an exploration permit; or

                            (vi)  a retention lease; or

                           (vii)  a production licence; or

                           (viii)  a special prospecting authority; and

                     (d)  the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

                     (e)  the registered holder of the permit, lease, licence or authority mentioned in paragraph (c) has not given written consent to the giving of the direction.

Consultation

             (2)  Before giving the direction, the responsible Commonwealth Minister must:

                     (a)  by written notice given to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c), give at least 30 days notice of the responsible Commonwealth Minister’s intention to give the direction; and

                     (b)  give a copy of the notice to such other persons (if any) as the responsible Commonwealth Minister thinks fit.

             (3)  The notice must:

                     (a)  set out details of the direction that is proposed to be given; and

                     (b)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the responsible Commonwealth Minister about the proposal; and

                     (c)  specify a time limit for making that submission.

             (4)  In deciding whether to give the direction, the responsible Commonwealth Minister must take into account any submissions made in accordance with the notice.

Emergencies

             (5)  However, if the responsible Commonwealth Minister is satisfied that the direction is required to deal with an emergency:

                     (a)  subsections (2), (3) and (4) do not apply to the direction; and

                     (b)  as soon as practicable after the direction is given, the responsible Commonwealth Minister must give a copy of the direction to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c).

249CY  Compliance with directions

             (1)  A person commits an offence if:

                     (a)  the person is given a direction under section 249CXA; and

                     (b)  the person engages in conduct; and

                     (c)  the person’s conduct breaches the direction.

Penalty:  100 penalty units.

             (2)  An offence against subsection (1) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

Division 5Dealing with serious situations

249CZ  Serious situation

             (1)  For the purposes of this Act, a serious situation exists in relation to an identified greenhouse gas storage formation specified in a greenhouse gas injection licence if:

                     (a)  a greenhouse gas substance injected into the identified greenhouse gas storage formation:

                              (i)  has leaked; or

                             (ii)  is leaking;

                            from the identified greenhouse gas storage formation; or

                     (b)  there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will leak from the identified greenhouse gas storage formation; or

                     (c)  a greenhouse gas substance:

                              (i)  has leaked; or

                             (ii)  is leaking;

                            in the course of being injected into the identified greenhouse gas storage formation; or

                     (d)  there is a significant risk that a greenhouse gas substance will leak in the course of being injected into the identified greenhouse gas storage formation; or

                     (e)  a greenhouse gas substance injected into the identified greenhouse gas storage formation:

                              (i)  has behaved; or

                             (ii)  is behaving;

                            otherwise than as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation; or

                      (f)  there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will behave otherwise than as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation; or

                     (g)  either:

                              (i)  the injection of a greenhouse gas substance into the identified greenhouse gas storage formation; or

                             (ii)  the storage of a greenhouse gas substance in the identified greenhouse gas storage formation;

                            has had, or is having, a significant adverse impact on the geotechnical integrity of the whole or a part of a geological formation or geological structure; or

                     (h)  there is a significant risk that:

                              (i)  the injection of a greenhouse gas substance into the identified greenhouse gas storage formation; or

                             (ii)  the storage of a greenhouse gas substance in an identified greenhouse gas storage formation;

                            will have a significant adverse impact on the geotechnical integrity of the whole or a part of a geological formation or geological structure; or

                      (i)  the identified greenhouse gas storage formation is not suitable (with or without engineering enhancements) for the permanent storage of the relevant amount of the relevant greenhouse gas substance injected at the relevant point or points over the relevant period.

             (2)  For the purposes of paragraph (1)(i):

                     (a)  the relevant amount is the total amount of greenhouse gas substance authorised to be injected into the identified greenhouse gas storage formation under the licence; and

                     (b)  the relevant greenhouse gas substance is the kind of greenhouse gas substance that is authorised to be injected into the identified greenhouse gas storage formation under the licence; and

                     (c)  the relevant point or points is the potential greenhouse gas injection site or sites at which the greenhouse gas substance is authorised to be injected into the identified greenhouse gas storage formation under the licence; and

                     (d)  the relevant period is the period during which the greenhouse gas substance is authorised to be injected into the identified greenhouse gas storage formation under the licence.

Note:          See subsection 249CE(3).

249CZA  Powers of responsible Commonwealth Minister to deal with serious situations

             (1)  If the responsible Commonwealth Minister is satisfied that a serious situation exists in relation to an identified greenhouse gas storage formation specified in a greenhouse gas injection licence, the responsible Commonwealth Minister may, by written notice given to the licensee, direct the licensee:

                     (a)  to take all reasonable steps to ensure that operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation are carried on in a manner specified in the direction; or

                     (b)  to take all reasonable steps to ensure that operations for the storage of a greenhouse gas substance in the identified greenhouse gas storage formation are carried on in a manner specified in the direction; or

                     (c)  to cease or suspend the injection of a greenhouse gas substance at a site or sites specified in the direction; or

                     (d)  to inject a greenhouse gas substance into the identified greenhouse gas storage formation at a site or sites specified in the direction; or

                     (e)  to cease or suspend operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation; or

                      (f)  to undertake such activities as are specified in the direction for the purpose of:

                              (i)  eliminating; or

                             (ii)  mitigating; or

                            (iii)  managing; or

                            (iv)  remediating;

                            the serious situation; or

                     (g)  to take such action as is specified in the direction; or

                     (h)  not to take such action as is specified in the direction.

             (2)  A direction under this section may require the licensee to do something:

                     (a)  in the licence area; or

                     (b)  in an offshore area but outside the licence area.

             (3)  Paragraphs (1)(a) to (f) do not limit paragraph (1)(g).

             (4)  Paragraphs (1)(a) to (f) do not limit paragraph (1)(h).

             (5)  A direction under this section has effect, and must be complied with, despite:

                     (a)  any previous direction under this section; and

                     (b)  anything in the regulations or the applied provisions.

             (6)  A direction under this section prevails over:

                     (a)  anything in an approved site plan for the identified greenhouse gas storage formation; or

                     (b)  anything specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k);

to the extent of any inconsistency.

             (7)  A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument:

                     (a)  as in force or existing at the time when the direction takes effect; or

                     (b)  as in force or existing from time to time;

so long as the code of practice or standard is relevant to that matter.

             (8)  To avoid doubt, subsection (7) applies to an instrument, whether issued or made in Australia or outside Australia.

             (9)  A direction under this section may prohibit the doing of an act or thing:

                     (a)  unconditionally; or

                     (b)  subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

           (10)  A direction under this section is not a legislative instrument.

           (11)  If:

                     (a)  a direction under this section is in force in relation to a greenhouse gas injection licence; and

                     (b)  apart from subsection (6), the direction would be inconsistent with a matter specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k);

the responsible Commonwealth Minister may, by written notice given to the licensee, vary the matter for the purposes of removing that inconsistency.

           (12)  A variation of a matter under subsection (11) takes effect on the day on which notice of the variation is published in the Gazette.

Note:          For publication in the Gazette of notice of the variation, see section 406‑418.

           (13)  The regulations may provide that, if:

                     (a)  a direction under this section is in force in relation to a greenhouse gas injection licence; and

                     (b)  apart from subsection (6), the direction would be inconsistent with anything in an approved site plan for the identified greenhouse gas storage formation;

then:

                     (c)  the licensee must, within the period ascertained in accordance with the regulations:

                              (i)  prepare a draft variation of the approved site plan for the purposes of removing that inconsistency; and

                             (ii)  give the draft variation to the responsible Commonwealth Minister; and

                     (d)  the responsible Commonwealth Minister must, by written notice given to the licensee:

                              (i)  approve the variation; or

                             (ii)  refuse to approve the variation; and

                     (e)  if the responsible Commonwealth Minister approves the variation—the approved site plan is varied accordingly.

           (14)  If an approved site plan is varied, a reference in this Act to the approved site plan is a reference to the approved site plan as varied.

249CZAA  Consultation—directions to do something outside the licence area

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to give a direction under section 249CZA to a greenhouse gas injection licensee; and

                     (b)  the direction requires the licensee to do something in an area (the action area) in an offshore area but outside the licence area; and

                     (c)  the action area is, to any extent, the subject of:

                              (i)  a greenhouse gas assessment permit; or

                             (ii)  a greenhouse gas holding lease; or

                            (iii)  a greenhouse gas injection licence; or

                            (iv)  a greenhouse gas search authority; or

                             (v)  an exploration permit; or

                            (vi)  a retention lease; or

                           (vii)  a production licence; or

                           (viii)  a special prospecting authority; and

                     (d)  the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

                     (e)  the registered holder of the permit, lease, licence or authority mentioned in paragraph (c) has not given written consent to the giving of the direction.

Consultation

             (2)  Before giving the direction, the responsible Commonwealth Minister must:

                     (a)  by written notice given to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c), give at least 30 days notice of the responsible Commonwealth Minister’s intention to give the direction; and

                     (b)  give a copy of the notice to such other persons (if any) as the responsible Commonwealth Minister thinks fit.

             (3)  The notice must:

                     (a)  set out details of the direction that is proposed to be given; and

                     (b)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the responsible Commonwealth Minister about the proposal; and

                     (c)  specify a time limit for making that submission.

             (4)  In deciding whether to give the direction, the responsible Commonwealth Minister must take into account any submissions made in accordance with the notice.

Emergencies

             (5)  However, if the responsible Commonwealth Minister is satisfied that the direction is required to deal with an emergency:

                     (a)  subsections (2), (3) and (4) do not apply to the direction; and

                     (b)  as soon as practicable after the direction is given, the responsible Commonwealth Minister must give a copy of the direction to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c).

249CZB  Compliance with directions

             (1)  A person commits an offence if:

                     (a)  the person is given a direction under section 249CZA; and

                     (b)  the person engages in conduct; and

                     (c)  the person’s conduct breaches the direction.

Penalty:  100 penalty units.

             (2)  An offence against subsection (1) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

Division 6Protection of petroleum discovered in the title area of a pre‑commencement petroleum title

249CZC  Powers of responsible Commonwealth Minister to protect petroleum discovered in the title area of a pre‑commencement petroleum title

Elimination of risk

             (1)  If:

                     (a)  the licence area of a greenhouse gas injection licence overlaps, in whole or in part:

                              (i)  the permit area of a pre‑commencement exploration permit held by a person other than the registered holder of the greenhouse gas injection licence; or

                             (ii)  the lease area of a pre‑commencement retention lease held by a person other than the registered holder of the greenhouse gas injection licence; or

                            (iii)  the licence area of a pre‑commencement production licence held by a person other than the registered holder of the greenhouse gas injection licence; and

                     (b)  petroleum is discovered in the area of overlap; and

                     (c)  the responsible Commonwealth Minister is satisfied that:

                              (i)  the recovery of the petroleum is commercially viable; or

                             (ii)  the recovery of the petroleum is not commercially viable, but is likely to become commercially viable at some time in the future; and

                     (d)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

                              (i)  operations to recover the petroleum; or

                             (ii)  the commercial viability of the recovery of the petroleum; and

                     (e)  the registered holder of the exploration permit, retention lease or production licence, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

                      (f)  the responsible Commonwealth Minister is satisfied that it is practicable to eliminate the risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

                              (i)  operations to recover the petroleum; or

                             (ii)  the commercial viability of the recovery of the petroleum;

the responsible Commonwealth Minister must, by written notice given to the registered holder of the greenhouse gas injection licence:

                     (g)  give the registered holder of the greenhouse gas injection licence a direction for the purpose of eliminating the risk that operations that are being, or could be, carried on under the greenhouse gas injection licence could have a significant adverse impact on:

                              (i)  operations to recover the petroleum; or

                             (ii)  the commercial viability of the recovery of the petroleum; or

                     (h)  suspend, either:

                              (i)  for a specified period; or

                             (ii)  indefinitely;

                            any or all of the rights conferred by the greenhouse gas injection licence; or

                      (i)  cancel the greenhouse gas injection licence.

             (2)  A direction under paragraph (1)(g) may require the licensee to do something:

                     (a)  in the licence area; or

                     (b)  in an offshore area but outside the licence area.

Mitigation, management or remediation of risk

             (3)  If:

                     (a)  the licence area of a greenhouse gas injection licence overlaps, in whole or in part:

                              (i)  the permit area of a pre‑commencement exploration permit held by a person other than the registered holder of the greenhouse gas injection licence; or

                             (ii)  the lease area of a pre‑commencement retention lease held by a person other than the registered holder of the greenhouse gas injection licence; or

                            (iii)  the licence area of a pre‑commencement production licence held by a person other than the registered holder of the greenhouse gas injection licence; and

                     (b)  petroleum is discovered in the area of overlap; and

                     (c)  the responsible Commonwealth Minister is satisfied that:

                              (i)  the recovery of the petroleum is commercially viable; or

                             (ii)  the recovery of the petroleum is not commercially viable, but is likely to become commercially viable at some time in the future; and

                     (d)  the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

                              (i)  operations to recover the petroleum; or

                             (ii)  the commercial viability of the recovery of the petroleum; and

                     (e)  the registered holder of the exploration permit, retention lease or production licence, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

                      (f)  the responsible Commonwealth Minister is satisfied that it is not practicable to eliminate the risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

                              (i)  operations to recover the petroleum; or

                             (ii)  the commercial viability of the recovery of the petroleum;

the responsible Commonwealth Minister must, by written notice given to the registered holder of the greenhouse gas injection licence:

                     (g)  give the registered holder of the greenhouse gas injection licence a direction for the purpose of mitigating, managing or remediating the risk that operations that are being, or could be, carried on under the greenhouse gas injection licence could have a significant adverse impact on:

                              (i)  operations to recover the petroleum; or

                             (ii)  the commercial viability of the recovery of the petroleum; or

                     (h)  suspend, either:

                              (i)  for a specified period; or

                             (ii)  indefinitely;

                            any or all of the rights conferred by the greenhouse gas injection licence; or

                      (i)  cancel the greenhouse gas injection licence.

             (4)  A direction under paragraph (3)(g) may require the licensee to take action:

                     (a)  in the licence area; or

                     (b)  in an offshore area but outside the licence area.

Other provisions

             (5)  A direction under this section has effect, and must be complied with, despite:

                     (a)  any previous direction under this section; and

                     (b)  anything in the regulations or the applied provisions.

             (6)  A direction under this section prevails over:

                     (a)  anything in an approved site plan for an identified greenhouse gas storage formation specified in the greenhouse gas injection licence; or

                     (b)  anything specified in the greenhouse gas injection licence as mentioned in any of paragraphs 249CE(3)(c) to (k);

to the extent of any inconsistency.

             (7)  A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument:

                     (a)  as in force or existing at the time when the direction takes effect; or

                     (b)  as in force or existing from time to time;

so long as the code of practice or standard is relevant to that matter.

             (8)  To avoid doubt, subsection (7) applies to an instrument, whether issued or made in Australia or outside Australia.

             (9)  A direction under this section may prohibit the doing of an act or thing:

                     (a)  unconditionally; or

                     (b)  subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

           (10)  A direction under this section is not a legislative instrument.

           (11)  If:

                     (a)  a direction under this section is in force in relation to a greenhouse gas injection licence; and

                     (b)  apart from subsection (6), the direction would be inconsistent with a matter specified in the licence as mentioned in any of paragraphs 249CE(3)(c) to (k);

the responsible Commonwealth Minister may, by written notice given to the licensee, vary the matter for the purposes of removing that inconsistency.

           (12)  A variation of a matter under subsection (11) takes effect on the day on which notice of the variation is published in the Gazette.

Note:          For publication in the Gazette of notice of the variation, see section 406‑418.

           (13)  The regulations may provide that, if:

                     (a)  a direction under this section is in force in relation to a greenhouse gas injection licence; and

                     (b)  apart from subsection (6), the direction would be inconsistent with anything in an approved site plan for an identified greenhouse gas storage formation specified in the licence;

then:

                     (c)  the licensee must, within the period ascertained in accordance with the regulations:

                              (i)  prepare a draft variation of the approved site plan for the purposes of removing that inconsistency; and

                             (ii)  give the draft variation to the responsible Commonwealth Minister; and

                     (d)  the responsible Commonwealth Minister must, by written notice given to the licensee:

                              (i)  approve the variation; or

                             (ii)  refuse to approve the variation; and

                     (e)  if the responsible Commonwealth Minister approves the variation—the approved site plan is varied accordingly.

           (14)  If an approved site plan is varied, a reference in this Act to the approved site plan is a reference to the approved site plan as varied.

249CZCA  Consultation—directions to do something outside the licence area

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to give a direction under section 249CZC to a greenhouse gas injection licensee; and

                     (b)  the direction requires the licensee to do something in an area (the action area) in an offshore area but outside the licence area; and

                     (c)  the action area is, to any extent, the subject of:

                              (i)  a greenhouse gas assessment permit; or

                             (ii)  a greenhouse gas holding lease; or

                            (iii)  a greenhouse gas injection licence; or

                            (iv)  a greenhouse gas search authority; or

                             (v)  an exploration permit; or

                            (vi)  a retention lease; or

                           (vii)  a production licence; or

                           (viii)  a special prospecting authority; and

                     (d)  the licensee mentioned in paragraph (a) is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (c); and

                     (e)  the registered holder of the permit, lease, licence or authority mentioned in paragraph (c) has not given written consent to the giving of the direction.

Consultation

             (2)  Before giving the direction, the responsible Commonwealth Minister must:

                     (a)  by written notice given to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c), give at least 30 days notice of the responsible Commonwealth Minister’s intention to give the direction; and

                     (b)  give a copy of the notice to such other persons (if any) as the responsible Commonwealth Minister thinks fit.

             (3)  The notice must:

                     (a)  set out details of the direction that is proposed to be given; and

                     (b)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the responsible Commonwealth Minister about the proposal; and

                     (c)  specify a time limit for making that submission.

             (4)  In deciding whether to give the direction, the responsible Commonwealth Minister must take into account any submissions made in accordance with the notice.

Emergencies

             (5)  However, if the responsible Commonwealth Minister is satisfied that the direction is required to deal with an emergency:

                     (a)  subsections (2), (3) and (4) do not apply to the direction; and

                     (b)  as soon as practicable after the direction is given, the responsible Commonwealth Minister must give a copy of the direction to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(c).

249CZD  Compliance with directions

             (1)  A person commits an offence if:

                     (a)  the person is given a direction under section 249CZC; and

                     (b)  the person engages in conduct; and

                     (c)  the person’s conduct breaches the direction.

Penalty:  100 penalty units.

             (2)  An offence against subsection (1) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

Division 7Site closing certificates

249CZE  Application for site closing certificate

             (1)  A greenhouse gas injection licensee may apply to the responsible Commonwealth Minister for a site closing certificate in relation to a particular identified greenhouse gas storage formation specified in the licence.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

Note 3:       Section 249JD enables the responsible Commonwealth Minister to require the applicant to give further information.

             (2)  An application under this section must be accompanied by:

                     (a)  a written report that sets out:

                              (i)  the applicant’s modelling of the behaviour of the greenhouse gas substance injected into the identified greenhouse gas storage formation; and

                             (ii)  information relevant to that modelling; and

                            (iii)  the applicant’s analysis of that information; and

                     (b)  a written report that sets out the applicant’s assessment of:

                              (i)  the behaviour of the greenhouse gas substance injected into the identified greenhouse gas storage formation; and

                             (ii)  the expected migration pathway or pathways of that greenhouse gas substance; and

                            (iii)  the short‑term consequences of the migration of that greenhouse gas substance; and

                            (iv)  the long‑term consequences of the migration of that greenhouse gas substance; and

                     (c)  the applicant’s suggestions for the approach to be taken by the Commonwealth, after the issue of the certificate, to the monitoring of the behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage formation; and

                     (d)  such other information (if any) as is specified in the regulations.

          (2A)  Subsection (2) does not apply if there have not been any operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation.

Mandatory application—cessation of injection operations

             (3)  If:

                     (a)  a greenhouse gas injection licence is in force; and

                     (b)  operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation concerned have ceased;

the licensee must, within the application period, make an application under subsection (1) for a site closing certificate in relation to the identified greenhouse gas storage formation.

             (4)  The application period for an application referred to in subsection (3) is:

                     (a)  the period of 30 days after the day on which the cessation referred to in paragraph (3)(b) occurred; or

                     (b)  such longer period, not more than 90 days after that day, as the responsible Commonwealth Minister allows.

             (5)  The responsible Commonwealth Minister may allow a longer period under paragraph (4)(b) only on written application made by the licensee within the period of 30 days mentioned in paragraph (4)(a).

             (6)  A person commits an offence if:

                     (a)  the person is subject to a requirement under subsection (3); and

                     (b)  the person omits to do an act; and

                     (c)  the omission breaches the requirement.

Penalty:  100 penalty units.

             (7)  An offence against subsection (6) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

Mandatory application—grounds for cancellation of licence

             (8)  If:

                     (a)  a greenhouse gas injection licence is in force; and

                     (b)  under Division 1 of Part 2A.11, there is a ground for cancelling the licence;

the responsible Commonwealth Minister may, by written notice given to the licensee, direct the licensee:

                     (c)  to make an application under subsection (1) for a site closing certificate in relation to each identified greenhouse gas storage formation specified in the licence; and

                     (d)  to do so within the period specified in the notice.

             (9)  A period specified under paragraph (8)(d) must not be shorter than 30 days.

           (10)  A person commits an offence if:

                     (a)  the person is given a direction under subsection (8); and

                     (b)  the person omits to do an act; and

                     (c)  the omission breaches the requirement.

Penalty:  100 penalty units.

           (11)  An offence against subsection (10) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

Mandatory application—greenhouse gas injection licence tied to a retention lease or production licence

           (12)  If:

                     (a)  a greenhouse gas injection licence is in force; and

                     (b)  the greenhouse gas injection licence is tied to a retention lease or production licence; and

                     (c)  the retention lease or production licence ceases to be in force as a result of being surrendered, cancelled, terminated or wholly revoked;

the licensee of the greenhouse gas injection licence must, within the application period, make an application under subsection (1) for a site closing certificate in relation to the identified greenhouse gas storage formation, or each of the identified greenhouse gas storage formations, specified in the greenhouse gas injection licence.

           (13)  The application period for an application referred to in subsection (12) is:

                     (a)  the period of 30 days after the day on which the cessation referred to in paragraph (12)(c) occurred; or

                     (b)  such longer period, not more than 90 days after that day, as the responsible Commonwealth Minister allows.

           (14)  The responsible Commonwealth Minister may allow a longer period under paragraph (13)(b) only on written application made by the licensee within the period of 30 days mentioned in paragraph (13)(a).

           (15)  A person commits an offence if:

                     (a)  the person is subject to a requirement under subsection (12); and

                     (b)  the person omits to do an act; and

                     (c)  the omission breaches the requirement.

Penalty:  100 penalty units.

           (16)  An offence against subsection (15) is an offence of strict liability.

Note:          For strict liability, see section 6.1 of the Criminal Code.

249CZEA  Variation of application for site closing certificate

Scope

             (1)  This section applies if an application for a site closing certificate has been made under section 249CZE.

Variation of application

             (2)  At any time before a decision on the application is made by the responsible Commonwealth Minister, the applicant may, by written notice given to the responsible Commonwealth Minister, vary the application.

             (3)  A variation of an application must be made in the approved manner.

             (4)  A variation of an application may be made:

                     (a)  on the applicant’s own initiative; or

                     (b)  at the request of the responsible Commonwealth Minister.

             (5)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

             (6)  If an application under this section is varied, a reference in this Act to the application is a reference to the application as varied.

249CZF  Issue of site closing certificate—pre‑certificate notice

             (1)  If:

                     (a)  an application for a site closing certificate has been made under section 249CZE; and

                     (b)  either:

                              (i)  the responsible Commonwealth Minister is satisfied that operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation concerned have ceased; or

                             (ii)  the responsible Commonwealth Minister is satisfied that there have not been any operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation concerned;

the responsible Commonwealth Minister may give the applicant a written notice (called a pre‑certificate notice) telling the applicant that the responsible Commonwealth Minister is prepared to issue to the applicant a site closing certificate in relation to the identified greenhouse gas storage formation.

Note:          See also section 249CZGAA.

Responsible Commonwealth Minister must have regard to certain matters

             (2)  If the responsible Commonwealth Minister is satisfied that there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on:

                     (a)  navigation; or

                     (b)  fishing; or

                     (c)  any activities being lawfully carried on, or that could be lawfully carried on, by way of the construction or operation of a pipeline; or

                     (d)  the enjoyment of native title rights (within the meaning of the Native Title Act 1993);

then, in deciding whether to give the applicant a pre‑certificate notice, the responsible Commonwealth Minister must have regard to that significant risk.

             (3)  Subsection (2) does not limit the matters to which the responsible Commonwealth Minister may have regard.

Circumstances in which a pre‑certificate notice may be refused

             (4)  The responsible Commonwealth Minister may refuse to give the applicant a pre‑certificate notice in relation to the identified greenhouse gas storage formation if:

                     (a)  the responsible Commonwealth Minister is not satisfied that the greenhouse gas substance injected into the identified greenhouse gas storage formation is behaving as predicted in Part A of the approved site plan for the identified greenhouse gas storage formation; or

                     (b)  the responsible Commonwealth Minister is satisfied that there is a significant risk that a greenhouse gas substance injected into the identified greenhouse gas storage formation will have a significant adverse impact on:

                              (i)  the conservation or exploitation of natural resources (whether in an offshore area or elsewhere); or

                             (ii)  the geotechnical integrity of the whole or a part of a geological formation or geological structure; or

                            (iii)  the environment; or

                            (iv)  human health or safety.

             (5)  Subsection (4) does not limit the matters to which the responsible Commonwealth Minister may have regard in deciding whether to refuse to give the applicant a pre‑certificate notice.

Circumstances in which a pre‑certificate notice must not be given

             (6)  The responsible Commonwealth Minister must not give the applicant a pre‑certificate notice in relation to the identified greenhouse gas storage formation unless the responsible Commonwealth Minister is satisfied that:

                     (a)  either:

                              (i)  the relevant statutory requirements have been complied with; or

                             (ii)  any of the relevant statutory requirements have not been complied with, but there are sufficient grounds to warrant the issue of the site closing certificate; or

                     (b)  if any conditions are specified in the regulations—those conditions have been satisfied.

             (7)  For the purposes of paragraph (6)(a), each of the following is a relevant statutory requirement:

                     (a)  the conditions to which the greenhouse gas injection licence is, or has from time to time been, subject;

                     (b)  the provisions of this Chapter, Chapter 3A, Chapter 4 and Part 5A.1;

                     (c)  the provisions of the regulations.

Decision must be made within 5 years

             (8)  If an application for a site closing certificate has been made under section 249CZE, the responsible Commonwealth Minister must make a decision on the application within 5 years after the application was made.

249CZFB  Acknowledgement of receipt of application for site closing certificate

Scope

             (1)  This section applies if an application has been made under section 249CZE for a site closing certificate.

Acknowledgement of receipt of application

             (2)  The responsible Commonwealth Minister must give the applicant notice of receipt of the application.

249CZG  Refusal to give pre‑certificate notice

Scope

             (1)  This section applies if:

                     (a)  an application has been made under section 249CZE for a site closing certificate; and

                     (b)  the responsible Commonwealth Minister refuses to give a pre‑certificate notice to the applicant.

Notice of refusal

             (2)  The responsible Commonwealth Minister must give written notice of the refusal to the applicant.

249CZGAA  Pre‑certificate notice—security etc.

             (1)  A pre‑certificate notice that relates to an application for a site closing certificate must:

                     (a)  specify a program of operations proposed to be carried out by the Commonwealth for the purposes of monitoring the behaviour of a greenhouse gas substance stored in the identified greenhouse gas storage formation concerned; and

                     (b)  set out an estimate of the total costs and expenses of carrying out the program; and

                     (c)  specify the form and amount of a security to be lodged by the applicant in respect of the compliance, by the holder for the time being of the site closing certificate, with the holder’s obligations under section 249CZM in relation to the costs and expenses of carrying out the program; and

                     (d)  contain a statement to the effect that the application will lapse if the applicant does not lodge the security with the responsible Commonwealth Minister within the period applicable under subsection (3).

             (2)  The amount of the security must equal the estimate referred to in paragraph (1)(b).

             (3)  The period for lodging the security is:

                     (a)  60 days after the pre‑certificate notice was given to the applicant; or

                     (b)  such longer period, not more than 180 days after the pre‑certificate notice was given to the applicant, as the responsible Commonwealth Minister allows.

             (4)  If the applicant does not lodge the security with the responsible Commonwealth Minister within the period applicable under subsection (3), the application lapses at the end of that period.

             (5)  The regulations may provide that an estimate referred to in paragraph (1)(b) is to be made on the basis of:

                     (a)  an assumption that costs and expenses will increase at an annual rate specified in the regulations; and

                     (b)  such other assumptions (if any) as are specified in the regulations.

             (6)  Subsection (1) does not apply if the responsible Commonwealth Minister is satisfied that there have not been any operations for the injection of a greenhouse gas substance into the identified greenhouse gas storage formation concerned.

249CZGA  Issue of site closing certificate

                   If:

                     (a)  an applicant has been given a pre‑certificate notice under subsection 249CZF(1); and

                     (b)  if subsection 249CZGAA(1) applies—the applicant has lodged the specified security within the period applicable under subsection 249CZGAA(3);

the responsible Commonwealth Minister must issue to the applicant a site closing certificate in relation to the identified greenhouse gas storage formation specified in the pre‑certificate notice.

Note:          If the applicant does not lodge the security with the responsible Commonwealth Minister within the period applicable under subsection 249CZGAA(3), the application lapses at the end of that period—see subsection 249CZGAA(4).

249CZH  Greenhouse gas injection licence transferred—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a greenhouse gas injection licence is registered under section 298‑262:

                     (a)  after an application has been made under section 249CZE for a site closing certificate in relation to an identified greenhouse gas storage formation specified in the greenhouse gas injection licence; and

                     (b)  before any action has been taken by the responsible Commonwealth Minister under section 249CZF or 249CZG in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 249CZE to 249CZGA and Part 2A.8 have effect in relation to the application as if any reference in those sections and that Part to the applicant were a reference to the transferee.

249CZJ  Duration of site closing certificate

             (1)  A site closing certificate remains in force indefinitely.

             (2)  Subsection (1) has effect subject to this Chapter.

249CZJA  Transfer of site closing certificate

                   If:

                     (a)  a site closing certificate is held by the registered holder of a greenhouse gas injection licence; and

                     (b)  a transfer of the licence is registered under section 298‑262;

the site closing certificate is, by force of this section, transferred to the transferee of the licence.

249CZJB  Transfer of securities

                   If:

                     (a)  a security is in force in relation to a site closing certificate; and

                     (b)  the site closing certificate is transferred;

then:

                     (c)  the interest of the transferor in the security is, by force of this section, transferred to the transferee; and

                     (d)  a document setting out or relating to the security has effect, after the transfer, as if a reference in the document to the transferor were a reference to the transferee.

249CZJC  Discharge of securities

                   The regulations may make provision in relation to the discharge, in whole or in part, by the responsible Commonwealth Minister of securities in force in relation to site closing certificates.

249CZM  Recovery of the Commonwealth’s costs and expenses

Scope

             (1)  This section applies if:

                     (a)  a site closing certificate is in force in relation to an identified greenhouse gas storage formation; and

                     (b)  the Commonwealth incurs reasonable costs or expenses in carrying out the program specified in the pre‑certificate notice for the site closing certificate.

Recovery of costs and expenses

             (2)  The costs or expenses:

                     (a)  are a debt due to the Commonwealth by the holder of the certificate; and

                     (b)  are recoverable in a court of competent jurisdiction.

             (3)  The total of the costs and expenses recoverable under subsection (2) must not exceed the estimate set out in the pre‑certificate notice.

Division 8Long‑term liabilities

249CZN  Closure assurance period

             (1)  If:

                     (a)  a site closing certificate is in force in relation to an identified greenhouse gas storage formation; and

                     (b)  the responsible Commonwealth Minister is satisfied that operations for the injection of a greenhouse gas substance into the formation ceased on a day (the cessation day) before the application for the site closing certificate was made; and

                     (c)  on a day (the decision day) that is at least 15 years after the issue of the site closing certificate, the responsible Commonwealth Minister is satisfied that:

                              (i)  the greenhouse gas substance injected into the formation is behaving as predicted in Part A of the approved site plan for the formation; and

                             (ii)  there is no significant risk that a greenhouse gas substance injected into the formation will have a significant adverse impact on the geotechnical integrity of the whole or a part of a geological formation or geological structure; and

                            (iii)  there is no significant risk that a greenhouse gas substance injected into the formation will have a significant adverse impact on the environment; and

                            (iv)  there is no significant risk that a greenhouse gas substance injected into the formation will have a significant adverse impact on human health or safety; and

                             (v)  since the cessation day, there have not been any operations for the injection of a greenhouse gas substance into the formation;

the responsible Commonwealth Minister may, by writing, declare that the period:

                     (d)  beginning at the end of the cessation day; and

                     (e)  ending at the end of the decision day;

is the closure assurance period in relation to the formation for the purposes of this Act.

             (2)  A copy of a declaration under subsection (1) is to be given to the holder of the site closing certificate.

249CZO  Indemnity—long‑term liability

Scope

             (1)  This section applies if:

                     (a)  a site closing certificate is in force in relation to an identified greenhouse gas storage formation; and

                     (b)  when the application for the certificate was made, the formation was specified in a greenhouse gas injection licence; and

                     (c)  there is a closure assurance period in relation to the formation; and

                     (d)  the following conditions are satisfied in relation to a liability of an existing person who is or has been the registered holder of the licence (whether or not the licence is in force):

                              (i)  the liability is a liability for damages;

                             (ii)  the liability is attributable to an act done or omitted to be done in the carrying out of operations authorised by the licence in relation to the formation;

                            (iii)  the liability is incurred or accrued after the end of the closure assurance period in relation to the formation;

                            (iv)  such other conditions (if any) as are specified in the regulations.

Indemnity

             (2)  The Commonwealth must indemnify the person against the liability.

249CZP  Commonwealth to assume long‑term liability if licensee has ceased to exist

Scope

             (1)  This section applies if:

                     (a)  a site closing certificate is in force in relation to an identified greenhouse gas storage formation; and

                     (b)  when the application for the certificate was made, the formation was specified in a greenhouse gas injection licence; and

                     (c)  there is a closure assurance period in relation to the formation; and

                     (d)  a person who has been the registered holder of the licence (whether or not the licence is in force) has ceased to exist; and

                     (e)  if the person had continued in existence, the following conditions would have been satisfied in relation to a liability of the person:

                              (i)  the liability is a liability for damages;

                             (ii)  the liability is attributable to an act done or omitted to be done in the carrying out of operations authorised by the licence in relation to the formation;

                            (iii)  the liability is incurred or accrued after the end of the closure assurance period in relation to the formation;

                            (iv)  such other conditions (if any) as are specified in the regulations; and

                      (f)  apart from this section, the damages are irrecoverable because the person has ceased to exist.

Commonwealth to assume liability

             (2)  The liability is taken to be a liability of the Commonwealth.

Part 2A.5Greenhouse gas search authorities

Division 1General provisions

249GA  Simplified outline

                   The following is a simplified outline of this Part:

•      This Part provides for the grant of greenhouse gas search authorities over blocks in an offshore area.

•      A greenhouse gas search authority may be granted over a block so long as none of the following is in force over the block:

               (a)     a greenhouse gas assessment permit;

               (b)     a greenhouse gas holding lease;

               (c)     a greenhouse gas injection licence;

               (d)     an exploration permit;

               (e)     a retention lease;

               (f)     a production licence.

•      A greenhouse gas search authority authorises the holder to carry on the following operations in the authority area:

               (a)     operations relating to the exploration for potential greenhouse gas storage formations;

               (b)     operations relating to the exploration for potential greenhouse gas injection sites.

 •     A greenhouse gas search authority does not authorise the holder to make a well.

249GB  Rights conferred by greenhouse gas search authority

             (1)  A greenhouse gas search authority authorises the registered holder, in accordance with the conditions (if any) to which the authority is subject, to carry on, in the authority area, the operations relating to:

                     (a)  the exploration for potential greenhouse gas storage formations; and

                     (b)  the exploration for potential greenhouse gas injection sites;

that are specified in the authority.

             (2)  A greenhouse gas search authority does not authorise the registered holder to make a well.

             (3)  The rights conferred on the registered holder by subsection (1) are subject to this Act and the regulations.

249GC  Conditions of greenhouse gas search authorities

             (1)  The responsible Commonwealth Minister may grant a greenhouse gas search authority subject to whatever conditions the responsible Commonwealth Minister thinks appropriate.

Note:          See also section 302, which deals with insurance.

             (2)  The conditions (if any) must be specified in the greenhouse gas search authority.

249GD  Duration of greenhouse gas search authority

             (1)  A greenhouse gas search authority comes into force on the day specified in the authority as the day on which the authority is to come into force.

             (2)  A greenhouse gas search authority remains in force for the period specified in the authority.

             (3)  The period specified under subsection (2) must not be longer than 180 days.

             (4)  Subsection (2) has effect subject to this Chapter.

Note 1:       For the surrender of a greenhouse gas search authority, see Part 2A.10.

Note 2:       For the cancellation of a greenhouse gas search authority, see Part 2A.11.

249GE  Greenhouse gas search authority cannot be transferred

                   A greenhouse gas search authority cannot be transferred.

Division 2Obtaining a greenhouse gas search authority

249GF  Application for greenhouse gas search authority

             (1)  A person may apply to the responsible Commonwealth Minister for the grant of a greenhouse gas search authority over a block or blocks, so long as none of the following is in force over that block or any of those blocks:

                     (a)  a greenhouse gas assessment permit;

                     (b)  a greenhouse gas holding lease;

                     (c)  a greenhouse gas injection licence;

                     (d)  an exploration permit;

                     (e)  a retention lease;

                      (f)  a production licence.

             (2)  An application under this section must specify:

                     (a)  the operations relating to:

                              (i)  the exploration for potential greenhouse gas storage formations; and

                             (ii)  the exploration for potential greenhouse gas injection sites;

                            that the applicant proposes to carry on; and

                     (b)  the block or blocks within which the applicant proposes to carry on those operations.

Note 1:       Part 2A.8 contains additional provisions about application procedures.

Note 2:       Section 249JB requires the application to be accompanied by an application fee.

249GG  Grant or refusal of greenhouse gas search authority

                   If an application for a greenhouse gas search authority has been made under section 249GF, the responsible Commonwealth Minister may:

                     (a)  grant the applicant a greenhouse gas search authority; or

                     (b)  by written notice given to the applicant, refuse to grant a greenhouse gas search authority to the applicant.

249GH  Holders to be informed of the grant of another greenhouse gas search authority

Scope

             (1)  This section applies if:

                     (a)  a person (the first person) is the registered holder of a greenhouse gas search authority over a block; and

                     (b)  another greenhouse gas search authority is granted to another person (the second person) over the block.

Holders to be informed

             (2)  The responsible Commonwealth Minister must, by written notice given to the first person, inform the first person of:

                     (a)  the operations authorised by the greenhouse gas search authority granted to the second person; and

                     (b)  the conditions of the greenhouse gas search authority granted to the second person.

             (3)  The responsible Commonwealth Minister must, by written notice given to the second person, inform the second person of:

                     (a)  the operations authorised by the greenhouse gas search authority granted to the first person; and

                     (b)  the conditions of the greenhouse gas search authority granted to the first person.

249GJ  Holders to be informed of the grant of a special prospecting authority

Scope

             (1)  This section applies if:

                     (a)  a person (the first person) is the registered holder of a greenhouse gas search authority over a block; and

                     (b)  a special prospecting authority is granted to another person (the second person) over the block.

Holders to be informed

             (2)  The Designated Authority must, by written notice given to the first person, inform the first person of:

                     (a)  the operations authorised by the special prospecting authority granted to the second person; and

                     (b)  the conditions of the special prospecting authority granted to the second person.

             (3)  The responsible Commonwealth Minister must, by written notice given to the second person, inform the second person of:

                     (a)  the operations authorised by the greenhouse gas search authority granted to the first person; and

                     (b)  the conditions of the greenhouse gas search authority granted to the first person.

Part 2A.6Greenhouse gas special authorities

Division 1General provisions

249HA  Simplified outline

                   The following is a simplified outline of this Part:

•      This Part provides for the grant of greenhouse gas special authorities over blocks in an offshore area.

•      A greenhouse gas special authority authorises the holder to carry on certain operations in the authority area (but not to make a well).

249HB  Rights conferred by greenhouse gas special authority

             (1)  A greenhouse gas special authority authorises the registered holder, in accordance with the conditions (if any) to which the authority is subject, to carry on, in the authority area, the operations specified in the authority.

             (2)  A greenhouse gas special authority does not authorise the registered holder to make a well.

             (3)  The rights conferred on the registered holder by subsection (1) are subject to this Act and the regulations.

249HC  Conditions of greenhouse gas special authorities

             (1)  The responsible Commonwealth Minister may grant a greenhouse gas special authority subject to whatever conditions the responsible Commonwealth Minister thinks appropriate.

Note:          See also section 302, which deals with insurance.

             (2)  The conditions (if any) must be specified in the greenhouse gas special authority.

249HD  Duration of greenhouse gas special authority

             (1)  A greenhouse gas special authority comes into force on the day specified in the authority as the day on which the authority is to come into force.

             (2)  A greenhouse gas special authority remains in force for the period specified in the authority, but may be extended by the responsible Commonwealth Minister for a further specified period.

             (3)  Subsection (2) has effect subject to this Chapter.

Note 1:       For the surrender of a greenhouse gas special authority, see Part 2A.10.

Note 2:       For the revocation of a greenhouse gas special authority, see section 249HL.

Division 2Obtaining a greenhouse gas special authority

249HE  Application for greenhouse gas special authority

             (1)  The table has effect:

 

Application for greenhouse gas special authority

 

Column 1

Column 2

Column 3

Item

This person...

may apply to...

for the grant of a greenhouse gas special authority to enable the person to...

1

the registered holder of a greenhouse gas assessment permit, greenhouse gas holding lease or greenhouse gas injection licence relating to a particular offshore area

the responsible Commonwealth Minister

carry on, in an area that is:

(a) part of that offshore area but outside the permit area, lease area or licence area; or

(b) part of an adjoining offshore area;

any or all of the following:

(c) operations relating to the exploration for potential greenhouse gas storage formations;

(d) operations relating to the exploration for potential greenhouse gas injection sites;

(e) operations relating to the injection of a greenhouse gas substance into a part of a geological formation;

(f) operations relating to the storage of a greenhouse gas substance in a part of a geological formation;

(g) operations to carry out baseline investigations relating to the storage of a greenhouse gas substance in a part of a geological formation;

(h) operations relating to the monitoring of the behaviour of a greenhouse gas substance stored in a part of a geological formation.

2

the registered holder of a greenhouse gas search authority relating to a particular offshore area

the responsible Commonwealth Minister

carry on either or both of the following:

(a) operations relating to the exploration for potential greenhouse gas storage formations;

(b) operations relating to the exploration for potential greenhouse gas injection sites;

in an area that is:

(c) part of that offshore area but outside the authority area of the greenhouse gas search authority; or

(d) part of an adjoining offshore area.

             (2)  An application under this section must specify:

                     (a)  the operations that the applicant proposes to carry on; and

                     (b)  the area in which the applicant proposes to carry on those operations.

Note:          Part 2A.8 contains additional provisions about application procedures.

249HF  Grant or refusal of greenhouse gas special authority

                   If:

                     (a)  an application for a greenhouse gas special authority has been made under section 249HE; and

                     (b)  the responsible Commonwealth Minister is satisfied that it is necessary or desirable to grant the greenhouse gas special authority for:

                              (i)  the more effective exercise of the applicant’s rights; or

                             (ii)  the proper performance of the applicant’s duties;

                            in the applicant’s capacity as the registered holder of:

                            (iii)  a greenhouse gas assessment permit; or

                            (iv)  a greenhouse gas holding lease; or

                             (v)  a greenhouse gas injection licence; or

                            (vi)  a greenhouse gas search authority;

the responsible Commonwealth Minister may:

                     (c)  grant the applicant a greenhouse gas special authority; or

                     (d)  by written notice given to the applicant, refuse to grant a greenhouse gas special authority to the applicant.

Note:          Consultation procedures apply—see section 249HG.

249HG  Consultation—grant of greenhouse gas special authority

Scope

             (1)  This section applies if:

                     (a)  an application for a greenhouse gas special authority has been made under section 249HE in relation to an area (the application area); and

                     (b)  the application area is, to any extent, the subject of:

                              (i)  a greenhouse gas assessment permit; or

                             (ii)  a greenhouse gas holding lease; or

                            (iii)  a greenhouse gas injection licence; or

                            (iv)  a greenhouse gas search authority; and

                     (c)  the applicant is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (b); and

                     (d)  the registered holder of the permit, lease, licence or authority mentioned in paragraph (b) has not given written consent to the grant of the greenhouse gas special authority.

Consultation

             (2)  Before granting the greenhouse gas special authority, the responsible Commonwealth Minister must:

                     (a)  by written notice given to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(b), give at least 30 days notice of the responsible Commonwealth Minister’s intention to grant the greenhouse gas special authority; and

                     (b)  give a copy of the notice to such other persons (if any) as the responsible Commonwealth Minister thinks fit.

             (3)  The notice must:

                     (a)  set out details of the greenhouse gas special authority that is proposed to be granted; and

                     (b)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the responsible Commonwealth Minister about the proposal; and

                     (c)  specify a time limit for making that submission.

             (4)  In deciding:

                     (a)  whether to grant the greenhouse gas special authority; and

                     (b)  the conditions (if any) to which the greenhouse gas special authority should be subject;

the responsible Commonwealth Minister must take into account any submissions made in accordance with the notice.

Division 3Variation of greenhouse gas special authorities

249HI  Variation of greenhouse gas special authority

                   The responsible Commonwealth Minister may, by written notice given to the registered holder of a greenhouse gas special authority, vary the greenhouse gas special authority.

Note:          Consultation procedures apply—see section 249HJ.

249HJ  Consultation—variation of greenhouse gas special authority

Scope

             (1)  This section applies if:

                     (a)  the responsible Commonwealth Minister proposes to vary a greenhouse gas special authority; and

                     (b)  the authority area is, to any extent, the subject of:

                              (i)  a greenhouse gas assessment permit; or

                             (ii)  a greenhouse gas holding lease; or

                            (iii)  a greenhouse gas injection licence; or

                            (iv)  a greenhouse gas search authority; and

                     (c)  the applicant is not the registered holder of the permit, lease, licence or authority mentioned in paragraph (b); and

                     (d)  the registered holder of the permit, lease, licence or authority mentioned in paragraph (b) has not given written consent to the variation of the greenhouse gas special authority.

Consultation

             (2)  Before varying the greenhouse gas special authority, the responsible Commonwealth Minister must:

                     (a)  by written notice given to the registered holder of the permit, lease, licence or authority mentioned in paragraph (1)(b) give at least 30 days notice of the responsible Commonwealth Minister’s intention to vary the greenhouse gas special authority; and

                     (b)  give a copy of the notice to:

                              (i)  the registered holder of the greenhouse gas special authority; and

                             (ii)  such other persons (if any) as the responsible Commonwealth Minister thinks fit.

             (3)  The notice must:

                     (a)  set out details of the variation that is proposed to be made; and

                     (b)  invite a person to whom the notice, or a copy of the notice, has been given to make a written submission to the responsible Commonwealth Minister about the proposal; and

                     (c)  specify a time limit for making that submission.

             (4)  In deciding whether to vary the greenhouse gas special authority, the responsible Commonwealth Minister must take into account any submissions made in accordance with the notice.

Division 4Reporting obligations of holders of greenhouse gas special authorities

249HK  Reporting obligations of holders of greenhouse gas special authorities

             (1)  If:

                     (a)  at any time during a particular month, a greenhouse gas special authority is in force in relation to an area that consists of, or includes, a block that is the subject of:

                              (i)  a greenhouse gas assessment permit; or

                             (ii)  a greenhouse gas holding lease; or

                            (iii)  a greenhouse gas injection licence; and

                     (b)  the registered holder of the greenhouse gas special author