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Offshore Petroleum and Greenhouse Gas Storage Act 2006

  • - C2009C00139
  • In force - Superseded Version
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Act No. 14 of 2006 as amended, taking into account amendments up to Act No. 12 of 2009
An Act about petroleum exploration and recovery, and the injection and storage of greenhouse gas substances, in offshore areas, and for other purposes
Administered by: Resources, Energy and Tourism
Registered 06 Apr 2009
Start Date 01 Apr 2009
End Date 30 Jun 2009
Table of contents.
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Collapse Volume 1Volume 1
Chapter 1—Introduction
Expand Part 1.1—Legislative formalities and backgroundPart 1.1—Legislative formalities and background
Expand Part 1.2—InterpretationPart 1.2—Interpretation
Expand Part 1.3—Joint Authorities and Designated AuthoritiesPart 1.3—Joint Authorities and Designated Authorities
Expand Part 1.4—Application of State and Territory laws in offshore areasPart 1.4—Application of State and Territory laws in offshore areas
Chapter 2—Regulation of activities relating to petroleum
Expand Part 2.1—IntroductionPart 2.1—Introduction
Expand Part 2.2—Petroleum exploration permitsPart 2.2—Petroleum exploration permits
Expand Part 2.3—Petroleum retention leasesPart 2.3—Petroleum retention leases
Expand Part 2.4—Petroleum production licencesPart 2.4—Petroleum production licences
Expand Part 2.5—Infrastructure licencesPart 2.5—Infrastructure licences
Expand Part 2.6—Pipeline licencesPart 2.6—Pipeline licences
Expand Part 2.7—Petroleum special prospecting authoritiesPart 2.7—Petroleum special prospecting authorities
Expand Part 2.8—Petroleum access authoritiesPart 2.8—Petroleum access authorities
Expand Part 2.9—Petroleum scientific investigation consentsPart 2.9—Petroleum scientific investigation consents
Expand Part 2.10—Standard proceduresPart 2.10—Standard procedures
Expand Part 2.11—Variation, suspension and exemptionPart 2.11—Variation, suspension and exemption
Expand Part 2.12—Surrender of titlesPart 2.12—Surrender of titles
Expand Part 2.13—Cancellation of titlesPart 2.13—Cancellation of titles
Expand Part 2.14—Other provisionsPart 2.14—Other provisions
Chapter 3—Regulation of activities relating to injection and storage of greenhouse gas substances
Expand Part 3.1—IntroductionPart 3.1—Introduction
Expand Part 3.2—Greenhouse gas assessment permitsPart 3.2—Greenhouse gas assessment permits
Expand Part 3.3—Greenhouse gas holding leasesPart 3.3—Greenhouse gas holding leases
Expand Part 3.4—Greenhouse gas injection licencesPart 3.4—Greenhouse gas injection licences
Expand Part 3.5—Greenhouse gas search authoritiesPart 3.5—Greenhouse gas search authorities
Expand Part 3.6—Greenhouse gas special authoritiesPart 3.6—Greenhouse gas special authorities
Expand Part 3.7—Greenhouse gas research consentsPart 3.7—Greenhouse gas research consents
Expand Part 3.8—Standard proceduresPart 3.8—Standard procedures
Expand Part 3.9—Variation, suspension and exemptionPart 3.9—Variation, suspension and exemption
Expand Part 3.10—Surrender of titlesPart 3.10—Surrender of titles
Expand Part 3.11—Cancellation of titlesPart 3.11—Cancellation of titles
Expand Part 3.12—Other provisionsPart 3.12—Other provisions
Chapter 4—Registration of transfers of, and dealings in, petroleum titles
Expand Part 4.1—IntroductionPart 4.1—Introduction
Expand Part 4.2—Register of titles and petroleum special prospecting authoritiesPart 4.2—Register of titles and petroleum special prospecting authorities
Expand Part 4.3—Transfer of titlesPart 4.3—Transfer of titles
Expand Part 4.4—Devolution of titlePart 4.4—Devolution of title
Expand Part 4.5—Change in name of companyPart 4.5—Change in name of company
Expand Part 4.6—Dealings relating to existing titlesPart 4.6—Dealings relating to existing titles
Expand Part 4.7—Dealings in future interestsPart 4.7—Dealings in future interests
Expand Part 4.8—Correction and rectification of RegisterPart 4.8—Correction and rectification of Register
Expand Part 4.9—Information‑gathering powersPart 4.9—Information‑gathering powers
Expand Part 4.10—Other provisionsPart 4.10—Other provisions
Chapter 5—Registration of transfers of, and dealings in, greenhouse gas titles
Expand Part 5.1—IntroductionPart 5.1—Introduction
Expand Part 5.2—Register of titles and greenhouse gas search authoritiesPart 5.2—Register of titles and greenhouse gas search authorities
Expand Part 5.3—Transfer of titlesPart 5.3—Transfer of titles
Expand Part 5.4—Devolution of titlePart 5.4—Devolution of title
Expand Part 5.5—Change in name of companyPart 5.5—Change in name of company
Expand Part 5.6—Dealings relating to existing titlesPart 5.6—Dealings relating to existing titles
Expand Part 5.7—Dealings in future interestsPart 5.7—Dealings in future interests
Expand Part 5.8—Correction and rectification of RegisterPart 5.8—Correction and rectification of Register
Expand Part 5.9—Information‑gathering powersPart 5.9—Information‑gathering powers
Expand Part 5.10—Other provisionsPart 5.10—Other provisions
Chapter 6—Administration
Expand Part 6.1—OperationsPart 6.1—Operations
Expand Part 6.2—Directions relating to petroleumPart 6.2—Directions relating to petroleum
Expand Part 6.3—Directions relating to greenhouse gasPart 6.3—Directions relating to greenhouse gas
Expand Part 6.4—Restoration of the environmentPart 6.4—Restoration of the environment
Expand Part 6.5—Offences and enforcementPart 6.5—Offences and enforcement
Expand Part 6.6—Safety zones and the area to be avoidedPart 6.6—Safety zones and the area to be avoided
Expand Part 6.7—Collection of fees and royaltiesPart 6.7—Collection of fees and royalties
Expand Part 6.8—Occupational health and safetyPart 6.8—Occupational health and safety
Expand Part 6.9—National Offshore Petroleum Safety AuthorityPart 6.9—National Offshore Petroleum Safety Authority
Chapter 7—Information relating to petroleum
Expand Part 7.1—Data management and gathering of informationPart 7.1—Data management and gathering of information
Expand Part 7.2—Release of regulatory informationPart 7.2—Release of regulatory information
Expand Part 7.3—Release of technical informationPart 7.3—Release of technical information
Chapter 8—Information relating to greenhouse gas
Expand Part 8.1—Data management and gathering of informationPart 8.1—Data management and gathering of information
Expand Part 8.2—Release of regulatory informationPart 8.2—Release of regulatory information
Expand Part 8.3—Release of technical informationPart 8.3—Release of technical information
Chapter 9—Miscellaneous
Expand Part 9.1—Reconsideration and review of decisionsPart 9.1—Reconsideration and review of decisions
Expand Part 9.2—Expert advisory committeesPart 9.2—Expert advisory committees
Expand Part 9.3—Information relevant to the making of designated agreementsPart 9.3—Information relevant to the making of designated agreements
Expand Part 9.4—Liability for acts and omissionsPart 9.4—Liability for acts and omissions
Expand Part 9.5—Jurisdiction of courtsPart 9.5—Jurisdiction of courts
Expand Part 9.6—Service of documentsPart 9.6—Service of documents
Expand Part 9.7—Publication in GazettePart 9.7—Publication in Gazette
Expand Part 9.8—Delegation by responsible Commonwealth MinisterPart 9.8—Delegation by responsible Commonwealth Minister
Expand Part 9.9—Public interestPart 9.9—Public interest
Expand Part 9.10—Compensation for acquisition of propertyPart 9.10—Compensation for acquisition of property
Expand Part 9.11—RegulationsPart 9.11—Regulations
Expand Part 9.12—Transitional provisionsPart 9.12—Transitional provisions
Expand Volume 2Volume 2

Offshore Petroleum and Greenhouse Gas Storage Act 2006

Act No. 14 of 2006 as amended

This compilation was prepared on 1 April 2009
taking into account amendments up to Act No. 12 of 2009

Volume 1 includes:       Table of Contents
                                    Chapters 1–9 (ss. 1–791)

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Volume 2 includes:       Table of Contents
                                    Schedules 1–7
                                    Note 1
                                    Table of Acts
                                    Act Notes
                                    Table of Amendments
                                    Repeal Table
                                    Table A
                                    Renumbering Table

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

  

  

  


Contents

Chapter 1—Introduction                                                                                                     1

Part 1.1—Legislative formalities and background                                               1

1............ Short title [see Note 1]....................................................................... 1

2............ Commencement.................................................................................. 1

3............ Object................................................................................................. 2

4............ Simplified outline................................................................................ 2

5............ Commonwealth‑State agreement (the Offshore Constitutional Settlement)            5

6............ Simplified maps.................................................................................. 7

Part 1.2—Interpretation                                                                                                    11

Division 1—General                                                                                                    11

7............ Definitions........................................................................................ 11

8............ Offshore areas of the States and Territories..................................... 34

9............ Spaces above and below offshore areas............................................ 38

10.......... Term of titles.................................................................................... 38

11.......... Renewal of titles............................................................................... 40

12.......... Variation of titles.............................................................................. 42

13.......... Tied titles.......................................................................................... 42

14.......... Vacated area...................................................................................... 43

15.......... Infrastructure facilities...................................................................... 45

16.......... Terminal station................................................................................ 46

17.......... Terminal point.................................................................................. 47

18.......... Declared greenhouse gas facility....................................................... 47

19.......... Extended meaning of explore............................................................ 47

20.......... Potential greenhouse gas storage formation...................................... 49

21.......... Eligible greenhouse gas storage formation......................................... 49

22.......... Potential greenhouse gas injection site.............................................. 52

23.......... Incidental greenhouse gas‑related substance..................................... 52

24.......... Site plan—identified greenhouse gas storage formation................... 53

25.......... Significant risk of a significant adverse impact—approval of key petroleum operations       53

26.......... Significant risk of a significant adverse impact—grant of petroleum production licence        54

27.......... Significant risk of a significant adverse impact—approval of key greenhouse gas operations                56

28.......... Significant risk of a significant adverse impact—grant of greenhouse gas injection licence     58

29.......... Significant risk of a significant adverse impact—power of responsible Commonwealth Minister to protect petroleum.......................................................................................................... 60

30.......... Direction given by the responsible Commonwealth Minister.......... 61

31.......... Securities........................................................................................... 61

32.......... Designated agreements...................................................................... 62

33.......... Graticulation of Earth’s surface and constitution of blocks............. 63

34.......... External Territories........................................................................... 65

35.......... Application of Act........................................................................... 65

36.......... Certain pipelines provisions to apply subject to international obligations             65

Division 2—Datum provisions                                                                               67

Subdivision A—Datum for ascertaining the position of points etc.                 67

37.......... Objects.............................................................................................. 67

38.......... Definitions........................................................................................ 67

39.......... Australian Geodetic Datum.............................................................. 68

40.......... Geocentric Datum of Australia......................................................... 68

41.......... Current datum, previous datum and changeover time...................... 69

42.......... Use of current datum........................................................................ 69

43.......... Use of previous datum..................................................................... 70

44.......... Variation of titles and instruments................................................... 72

45.......... Variation of applications for titles.................................................... 73

46.......... No change to actual position of point, line or area........................... 73

47.......... Transitional regulations.................................................................... 73

48.......... International Seabed Agreements...................................................... 73

Subdivision B—Certain points etc. specified in an International Seabed Agreement to be ascertained by other means                                                                                                         73

49.......... Certain points etc. specified in an International Seabed Agreement to be ascertained by other means   73

Division 3—Apportionment of petroleum recovered from adjoining title areas               75

50.......... Title.................................................................................................. 75

51.......... Titleholder and title area................................................................... 75

52.......... Petroleum recovered through inclined well....................................... 75

53.......... Petroleum pool straddling 2 title areas etc........................................ 76

54.......... Petroleum pool straddling Commonwealth title area and State title area etc.          76

55.......... Unit development............................................................................. 77

Part 1.3—Joint Authorities and Designated Authorities                                79

Division 1—Joint Authorities                                                                                79

56.......... Joint Authorities............................................................................... 79

57.......... Functions and powers of Joint Authorities...................................... 80

58.......... Procedure of Joint Authority........................................................... 80

59.......... Decision‑making............................................................................... 81

60.......... Opinion or state of mind of Joint Authority.................................... 82

61.......... Records of decisions of Joint Authority.......................................... 82

62.......... Signing of documents........................................................................ 82

63.......... Communications with Joint Authority............................................ 82

64.......... Judicial notice of signature of member of a Joint Authority............ 83

65.......... Issue of documents, and service of notices, on behalf of Joint Authority               84

66.......... Delegation by a Joint Authority for a State or the Northern Territory.. 84

67.......... Delegation by Greater Sunrise Offshore Petroleum Joint Authority 86

68.......... Delegation by Joint Authority for an external Territory.................. 86

69.......... Greater Sunrise Offshore Petroleum Joint Authority—consultations 87

Division 2—Designated Authorities                                                                   88

70.......... Designated Authorities..................................................................... 88

71.......... Functions and powers of Designated Authorities............................ 89

72.......... Delegation by Designated Authority................................................ 90

73.......... Eastern Greater Sunrise Designated Authority—consultations....... 90

74.......... Judicial notice of signature of Designated Authority....................... 90

Division 3—Finance                                                                                                    92

75.......... Payments by the Commonwealth to Western Australia—Royalty Act payments                92

76.......... Payments by the Commonwealth to the States and the Northern Territory          94

77.......... Appropriation.................................................................................. 95

Part 1.4—Application of State and Territory laws in offshore areas       96

78.......... Simplified outline.............................................................................. 96

79.......... Meaning of laws............................................................................... 96

80.......... Application of State and Territory laws in offshore areas............... 96

81.......... Disapplication and modification of laws.......................................... 98

82.......... Limit on application of laws............................................................. 99

83.......... Inconsistent law not applied............................................................ 99

84.......... Criminal laws not applied................................................................. 99

85.......... Tax laws not applied........................................................................ 99

86.......... Appropriation law not applied........................................................ 99

87.......... Applied laws not to confer Commonwealth judicial power........... 100

88.......... Applied laws not to contravene constitutional restrictions on conferral of powers on courts               100

89.......... State or Northern Territory occupational health and safety laws do not apply in relation to facilities  100

90.......... No limits on ordinary operation of law.......................................... 103

91.......... Jurisdiction of State courts............................................................. 103

92.......... Jurisdiction of Territory courts...................................................... 103

93.......... Validation of certain acts................................................................ 103

94.......... Certain provisions not affected by this Part.................................. 104

Chapter 2—Regulation of activities relating to petroleum                         105

Part 2.1—Introduction                                                                                                      105

95.......... Simplified outline............................................................................ 105

Part 2.2—Petroleum exploration permits                                                              107

Division 1—General provisions                                                                          107

96.......... Simplified outline............................................................................ 107

97.......... Prohibition of unauthorised exploration for petroleum in offshore area  108

98.......... Rights conferred by petroleum exploration permit........................ 108

99.......... Conditions of petroleum exploration permits................................ 109

100........ Declared petroleum exploration permit—approval by responsible Commonwealth Minister of key petroleum operations....................................................................................... 111

101........ Declared petroleum exploration permits........................................ 114

102........ Duration of petroleum exploration permit..................................... 116

103........ Extension of petroleum exploration permit if permittee applies for petroleum retention lease or petroleum production licence............................................................................................. 117

Division 2—Obtaining a work‑bid petroleum exploration permit    119

104........ Application for work‑bid petroleum exploration permit—advertising of blocks    119

105........ Grant of work‑bid petroleum exploration permit—offer document 120

106........ Ranking of multiple applicants for work‑bid petroleum exploration permit           121

107........ Grant of work‑bid petroleum exploration permit........................... 123

108........ Withdrawal of application.............................................................. 123

109........ Effect of withdrawal or lapse of application.................................. 124

Division 3—Obtaining a cash‑bid petroleum exploration permit      126

110........ Application for cash‑bid petroleum exploration permit................. 126

111........ Grant of cash‑bid petroleum exploration permit—only one application                127

112........ Grant of cash‑bid petroleum exploration permit—2 or more applications             128

113........ Grant of cash‑bid petroleum exploration permit............................ 130

114........ Extension of cash‑bid petroleum exploration permit...................... 131

Division 4—Obtaining a special petroleum exploration permit over a surrendered block or certain other blocks                                                                                                      133

115........ Application for a special petroleum exploration permit over a surrendered block or certain other blocks             133

116........ Grant of special petroleum exploration permit—only one application.. 135

117........ Grant of special petroleum exploration permit—2 or more applications                135

118........ Grant of special petroleum exploration permit.............................. 138

Division 5—Renewal of petroleum exploration permits                        139

119........ Application for renewal of petroleum exploration permit............. 139

120........ Non‑renewable cash‑bid petroleum exploration permits................ 140

121........ Limit on renewal of cash‑bid petroleum exploration permits......... 140

122........ Limits on renewal of work‑bid petroleum exploration permits and special petroleum exploration permits           140

123........ Standard halving rules..................................................................... 142

124........ Modified halving rules.................................................................... 144

125........ Renewal of petroleum exploration permit—offer document.......... 144

126........ Refusal to renew petroleum exploration permit............................. 145

127........ Renewal of petroleum exploration permit...................................... 146

Division 6—Locations                                                                                              147

128........ Simplified outline............................................................................ 147

129........ Nomination of blocks as a location................................................. 147

130........ Requirement to nominate blocks as a location................................ 148

131........ Declaration of location.................................................................... 149

132........ Revocation of declaration............................................................... 150

133........ Variation of declaration................................................................... 152

Part 2.3—Petroleum retention leases                                                                      154

Division 1—General provisions                                                                          154

134........ Simplified outline............................................................................ 154

135........ Rights conferred by petroleum retention lease............................... 154

136........ Conditions of petroleum retention leases....................................... 155

137........ Declared petroleum retention lease—approval by responsible Commonwealth Minister of key petroleum operations........................................................................................................ 158

138........ Declared petroleum retention leases............................................... 161

139........ Duration of petroleum retention lease............................................ 162

140........ Extension of petroleum retention lease if lessee applies for petroleum production licence    162

Division 2—Obtaining a petroleum retention lease                                 164

Subdivision A—Application for petroleum retention lease by the holder of a petroleum exploration permit                164

141........ Application for petroleum retention lease by the holder of a petroleum exploration permit  164

142........ Grant of petroleum retention lease—offer document..................... 165

143........ Refusal to grant petroleum retention lease..................................... 165

144........ Grant of petroleum retention lease................................................. 166

145........ Petroleum exploration permit ceases to be in force when petroleum retention lease comes into force   166

146........ Petroleum exploration permit transferred—transferee to be treated as applicant   166

Subdivision B—Application for petroleum retention lease by the holder of a life‑of‑field petroleum production licence                                                                                                       167

147........ Application for petroleum retention lease by the holder of a life‑of‑field petroleum production licence               167

148........ Grant of petroleum retention lease—offer document..................... 168

149........ Refusal to grant petroleum retention lease..................................... 168

150........ Grant of petroleum retention lease................................................. 169

151........ Petroleum production licence ceases to be in force when petroleum retention lease comes into force   169

152........ Petroleum production licence transferred—transferee to be treated as applicant   169

Division 3—Renewal of petroleum retention leases                               171

153........ Application for renewal of petroleum retention lease.................... 171

154........ Renewal of petroleum retention lease—offer document................ 172

155........ Refusal to renew petroleum retention lease.................................... 173

156........ Renewal of petroleum retention lease............................................. 175

Division 4—Revocation of petroleum retention leases                         177

157........ Notice of proposal to revoke petroleum retention lease................ 177

158........ Revocation of petroleum retention lease........................................ 178

Part 2.4—Petroleum production licences                                                               180

Division 1—General provisions                                                                          180

159........ Simplified outline............................................................................ 180

160........ Prohibition of unauthorised recovery of petroleum in offshore area 181

161........ Rights conferred by petroleum production licence......................... 181

162........ Conditions of petroleum production licences................................. 182

163........ Declared petroleum production licence—approval by responsible Commonwealth Minister of key petroleum operations....................................................................................... 185

164........ Declared petroleum production licences......................................... 188

165........ Duration of petroleum production licence...................................... 189

166........ Termination of life‑of‑field petroleum production licence if no recovery operations for 5 years           191

167........ Petroleum production licences to which the Royalty Act applies. 192

Division 2—Obtaining a petroleum production licence as a result of an application made by a petroleum exploration permittee or a petroleum retention lessee 193

168........ Application for petroleum production licence by permittee.......... 193

169........ Application period......................................................................... 194

170........ Application for petroleum production licence by lessee................ 195

171........ Offer document............................................................................... 196

172........ Consultation—Greater Sunrise unit reservoir petroleum production licence          198

173........ Refusal to grant petroleum production licence............................... 199

174........ Joint Authority may defer taking action on application for petroleum production licence if there is a pending application for a greenhouse gas assessment permit...................... 203

175........ Grant of petroleum production licence........................................... 204

176........ Petroleum exploration permit or petroleum retention lease ceases to be in force when petroleum production licence comes into force.............................................................................. 204

177........ Petroleum exploration permit or petroleum retention lease transferred—transferee to be treated as applicant     204

Division 3—Obtaining a cash‑bid petroleum production licence over a surrendered block or similar block                                                                                                        206

178........ Application for cash‑bid petroleum production licence over surrendered blocks or similar blocks        206

179........ Grant of cash‑bid petroleum production licence—only one application 207

180........ Grant of cash‑bid petroleum production licence—2 or more applications              208

181........ Grant of cash‑bid petroleum production licence............................ 210

Division 4—Obtaining petroleum production licences over individual blocks  212

182........ Applications for petroleum production licences over individual blocks 212

183........ Grant of petroleum production licences over individual blocks..... 212

Division 5—Renewal of fixed‑term petroleum production licences 214

184........ Application for renewal of fixed‑term petroleum production licence 214

185........ Renewal of fixed‑term petroleum production licence—offer document  215

186........ Refusal to renew fixed‑term petroleum production licence............ 217

187........ Renewal of fixed‑term petroleum production licence..................... 218

Division 6—What happens if a block is not taken up                              219

188........ Revocation of petroleum exploration permit or petroleum retention lease to the extent to which it relates to a block not taken up.......................................................................................... 219

Division 7—Petroleum field development                                                    221

Subdivision A—Directions about the recovery of petroleum                          221

189........ Direction to recover petroleum....................................................... 221

190........ Directions about the rate of recovery of petroleum....................... 221

Subdivision B—Unit development                                                                         222

191........ Unit development........................................................................... 222

Part 2.5—Infrastructure licences                                                                               227

Division 1—General provisions                                                                          227

192........ Simplified outline............................................................................ 227

193........ Prohibition of unauthorised construction or operation of an infrastructure facility in an offshore area 227

194........ Rights conferred by an infrastructure licence................................. 228

195........ Conditions of infrastructure licences.............................................. 228

196........ Duration of infrastructure licence................................................... 229

197........ Termination of infrastructure licence if no operations for 5 years. 229

Division 2—Obtaining an infrastructure licence                                        231

198........ Application for infrastructure licence............................................. 231

199........ Grant of infrastructure licence—offer document............................ 231

200........ Refusal to grant infrastructure licence............................................ 231

201........ Grant of infrastructure licence........................................................ 232

202........ Consultation with petroleum titleholders—grant of infrastructure licence             232

203........ Consultation with greenhouse gas titleholders—grant of infrastructure licence      234

Division 3—Varying an infrastructure licence                                             236

204........ Application for variation of infrastructure licence......................... 236

205........ Variation of infrastructure licence................................................... 236

206........ Consultation with petroleum titleholders—variation of infrastructure licence       237

207........ Consultation with greenhouse gas titleholders—variation of infrastructure licence                238

Division 4—Directions by responsible Commonwealth Minister    241

208........ Directions by responsible Commonwealth Minister..................... 241

Part 2.6—Pipeline licences                                                                                            242

Division 1—General provisions                                                                          242

209........ Simplified outline............................................................................ 242

210........ Prohibition of unauthorised construction or operation of a pipeline in an offshore area        242

211........ Rights conferred by pipeline licence............................................... 244

212........ Conditions of pipeline licences....................................................... 245

213........ Approval by Joint Authority of greenhouse gas substance to be conveyed in a pipeline      246

214........ Duration of pipeline licence............................................................ 247

215........ Termination of pipeline licence if no operations for 5 years.......... 248

216........ Alteration or removal of pipeline constructed in breach of this Act 249

Division 2—Obtaining a pipeline licence                                                       251

217........ Application for pipeline licence..................................................... 251

218........ Rights of petroleum production licensees following application for petroleum‑related pipeline licences by other persons........................................................................................... 252

219........ Rights of petroleum production licensees following application for greenhouse gas‑related pipeline licences by other persons........................................................................................... 253

220........ Rights of greenhouse gas injection licensees following application for greenhouse gas‑related pipeline licences by other persons........................................................................................... 254

221........ Grant of petroleum‑related pipeline licence—offer document....... 255

222........ Grant of greenhouse gas‑related pipeline licence—offer document 257

223........ Refusal to grant petroleum‑related pipeline licence........................ 262

224........ Refusal to grant greenhouse gas‑related pipeline licence................ 263

225........ Grant of pipeline licence................................................................. 266

Division 3—Varying a pipeline licence                                                            267

226........ Variation of pipeline licence on application by licensee................. 267

227........ Variation of pipeline licence at the request of a Minister or a statutory body        268

Division 4—Pipeline operation                                                                            270

228........ Ceasing to operate pipeline without consent................................. 270

Part 2.7—Petroleum special prospecting authorities                                      271

Division 1—General provisions                                                                          271

229........ Simplified outline............................................................................ 271

230........ Rights conferred by petroleum special prospecting authority....... 271

231........ Conditions of petroleum special prospecting authorities............... 272

232........ Duration of petroleum special prospecting authority.................... 272

233........ Petroleum special prospecting authority cannot be transferred..... 272

Division 2—Obtaining a petroleum special prospecting authority   273

234........ Application for petroleum special prospecting authority.............. 273

235........ Grant or refusal of petroleum special prospecting authority......... 273

236........ Holders to be informed of the grant of another petroleum special prospecting authority      274

237........ Holders to be informed of the grant of greenhouse gas search authority 274

Part 2.8—Petroleum access authorities                                                                 276

Division 1—General provisions                                                                          276

238........ Simplified outline............................................................................ 276

239........ Rights conferred by petroleum access authority............................ 276

240........ Conditions of petroleum access authorities.................................... 276

241........ Duration of petroleum access authority......................................... 277

Division 2—Obtaining a petroleum access authority                              278

242........ Application for petroleum access authority................................... 278

243........ Grant or refusal of petroleum access authority.............................. 279

244........ Consultation—grant of petroleum access authority in same offshore area             280

245........ Consultation—approval of grant of petroleum access authority in adjoining offshore area   281

Division 3—Variation of petroleum access authorities                          283

246........ Variation of petroleum access authority......................................... 283

247........ Consultation—variation of petroleum access authority in same offshore area       283

248........ Consultation—approval of variation of petroleum access authority in adjoining offshore area             284

Division 4—Reporting obligations of holders of petroleum access authorities                286

249........ Reporting obligations of holders of petroleum access authorities.. 286

Division 5—Revocation of petroleum access authorities                     287

250........ Revocation of petroleum access authority..................................... 287

Part 2.9—Petroleum scientific investigation consents                                   288

251........ Simplified outline............................................................................ 288

252........ Rights conferred by petroleum scientific investigation consent..... 288

253........ Conditions of petroleum scientific investigation consents............. 288

254........ Grant of petroleum scientific investigation consent....................... 288

Part 2.10—Standard procedures                                                                                290

255........ Application to be made in an approved manner............................. 290

256........ Application fee............................................................................... 290

257........ Application may set out additional matters................................... 291

258........ Designated Authority may require further information................. 292

259........ Offer documents............................................................................. 294

260........ Acceptance of offer—request by applicant................................... 295

261........ Acceptance of offer—payment...................................................... 299

262........ Consultation—adverse decisions.................................................... 299

263........ Responsible Commonwealth Minister may require information about negotiations for a designated agreement   301

Part 2.11—Variation, suspension and exemption                                             303

Division 1—Variation, suspension and exemption decisions relating to petroleum exploration permits, petroleum retention leases, petroleum production licences, infrastructure licences and pipeline licences                                                                                303

264........ Variation, suspension and exemption—conditions of titles........... 303

265........ Extension of term of petroleum exploration permit or petroleum retention lease—suspension or exemption       305

266........ Suspension of rights—petroleum exploration permit or petroleum retention lease                306

267........ Extension of term of petroleum exploration permit or petroleum retention lease—suspension of rights               306

Division 2—Variation, suspension and exemption decisions relating to petroleum special prospecting authorities and petroleum access authorities                    308

268........ Variation, suspension and exemption—conditions of petroleum special prospecting authorities and petroleum access authorities....................................................................................... 308

Part 2.12—Surrender of titles                                                                                      310

Division 1—Surrender of petroleum exploration permits, petroleum production licences, petroleum retention leases, infrastructure licences and pipeline licences       310

269........ Application for consent to surrender title...................................... 310

270........ Consent to surrender title............................................................... 310

271........ Surrender of title............................................................................. 313

Division 2—Surrender of petroleum special prospecting authorities and petroleum access authorities                                                                                                                    315

272........ Surrender of petroleum special prospecting authority................... 315

273........ Surrender of petroleum access authority........................................ 315

Part 2.13—Cancellation of titles                                                                                 316

Division 1—Cancellation of petroleum exploration permits, petroleum production licences, petroleum retention leases, infrastructure licences and pipeline licences       316

274........ Grounds for cancellation of title..................................................... 316

275........ Cancellation of title......................................................................... 317

276........ Consultation................................................................................... 317

277........ Cancellation of title not affected by other provisions.................... 318

Division 2—Cancellation of petroleum special prospecting authorities                321

278........ Cancellation of petroleum special prospecting authority............... 321

Part 2.14—Other provisions                                                                                         322

279........ Reservation of blocks..................................................................... 322

280........ Interference with other rights......................................................... 323

281........ No conditions about payment of money........................................ 324

282........ Certain portions of blocks to be blocks.......................................... 324

283........ Changes to the boundary of the coastal waters of a State or Territory 326

284........ Notification of discovery of petroleum in petroleum exploration permit area or petroleum retention lease area   327

285........ Property in petroleum not recovered from a Greater Sunrise unit reservoir           328

286........ Property in petroleum recovered from a Greater Sunrise unit reservoir  329

Chapter 3—Regulation of activities relating to injection and storage of greenhouse gas substances       331

Part 3.1—Introduction                                                                                                      331

287........ Simplified outline............................................................................ 331

Part 3.2—Greenhouse gas assessment permits                                                333

Division 1—General provisions                                                                          333

288........ Simplified outline............................................................................ 333

289........ Prohibition of unauthorised exploration for potential greenhouse gas storage formation, or potential greenhouse gas injection site, in offshore area......................................................... 334

290........ Rights conferred by greenhouse gas assessment permit................. 334

291........ Conditions of greenhouse gas assessment permits......................... 335

292........ Approval by responsible Commonwealth Minister of key greenhouse gas operations          337

293........ Duration of greenhouse gas assessment permit.............................. 340

294........ Extension of greenhouse gas assessment permit if permittee applies for a declaration of an identified greenhouse gas storage formation............................................................................ 342

295........ Extension of greenhouse gas assessment permit if permittee applies for a greenhouse gas holding lease or greenhouse gas injection licence......................................................................... 342

Division 2—Obtaining a work‑bid greenhouse gas assessment permit                344

296........ Application for work‑bid greenhouse gas assessment permit—advertising of blocks            344

297........ Retention lessee or production licensee to be notified of proposal to advertise blocks          345

298........ Grant of work‑bid greenhouse gas assessment permit—offer document                346

299........ Ranking of multiple applicants for work‑bid greenhouse gas assessment permit   347

300........ Grant of work‑bid greenhouse gas assessment permit................... 349

301........ Withdrawal of application.............................................................. 350

302........ Effect of withdrawal or lapse of application.................................. 351

Division 3—Obtaining a cash‑bid greenhouse gas assessment permit 353

303........ Application for cash‑bid greenhouse gas assessment permit......... 353

304........ Retention lessee or production licensee to be notified of proposal to advertise blocks          354

305........ Grant of cash‑bid greenhouse gas assessment permit—only one application         355

306........ Grant of cash‑bid greenhouse gas assessment permit—2 or more applications      356

307........ Grant of cash‑bid greenhouse gas assessment permit..................... 358

Division 4—Renewal of greenhouse gas assessment permits           360

308........ Application for renewal of greenhouse gas assessment permit...... 360

309........ Renewal of greenhouse gas assessment permit—offer document.. 361

310........ Refusal to renew greenhouse gas assessment permit...................... 364

311........ Renewal of greenhouse gas assessment permit............................... 365

Division 5—Declaration of identified greenhouse gas storage formation            367

312........ Declaration of identified greenhouse gas storage formation............ 367

313........ Variation of declaration of identified greenhouse gas storage formation  370

314........ Revocation of declaration of identified greenhouse gas storage formation               372

315........ Register of Identified Greenhouse Gas Storage Formations........... 373

Division 6—Directions                                                                                             374

316........ Responsible Commonwealth Minister may give directions to greenhouse gas assessment permittees  374

317........ Compliance with directions............................................................ 375

Part 3.3—Greenhouse gas holding leases                                                            376

Division 1—General provisions                                                                          376

318........ Simplified outline............................................................................ 376

319........ Rights conferred by greenhouse gas holding lease.......................... 377

320........ Conditions of greenhouse gas holding leases.................................. 378

321........ Approval by responsible Commonwealth Minister of key greenhouse gas operations          379

322........ Duration of greenhouse gas holding lease....................................... 383

323........ Extension of greenhouse gas holding lease if lessee applies for a special greenhouse gas holding lease or greenhouse gas injection licence............................................................................... 383

Division 2—Obtaining a greenhouse gas holding lease                         386

Subdivision A—Application for greenhouse gas holding lease by the holder of a greenhouse gas assessment permit                                                                                                       386

324........ Application for greenhouse gas holding lease by the holder of a greenhouse gas assessment permit      386

325........ Grant of greenhouse gas holding lease—offer document................ 389

326........ Refusal to grant greenhouse gas holding lease................................. 390

327........ Grant of greenhouse gas holding lease............................................ 391

328........ Greenhouse gas assessment permit ceases to be in force when greenhouse gas holding lease comes into force      391

329........ Greenhouse gas assessment permit transferred—transferee to be treated as applicant          392

Subdivision B—Application for greenhouse gas holding lease by the holder of a greenhouse gas injection licence  392

330........ Application for greenhouse gas holding lease by the holder of a greenhouse gas injection licence          392

331........ Grant of greenhouse gas holding lease—offer document................ 393

332........ Refusal to grant greenhouse gas holding lease................................. 394

333........ Grant of greenhouse gas holding lease............................................ 394

334........ Greenhouse gas injection licence ceases to be in force when greenhouse gas holding lease comes into force          395

335........ Greenhouse gas injection licence transferred—transferee to be treated as applicant               395

Subdivision C—Application for special greenhouse gas holding lease by an unsuccessful applicant for a greenhouse gas injection licence                                                                         396

336........ Application for special greenhouse gas holding lease by an unsuccessful applicant for a greenhouse gas injection licence........................................................................................................ 396

337........ Grant of special greenhouse gas holding lease—offer document.... 397

338........ Grant of special greenhouse gas holding lease................................ 398

339........ Greenhouse gas assessment permit ceases to be in force when special greenhouse gas holding lease comes into force........................................................................................................ 399

340........ Ordinary greenhouse gas holding lease ceases to be in force when special greenhouse gas holding lease comes into force........................................................................................................ 399

341........ Greenhouse gas assessment permit transfer—transferee to be treated as applicant               399

342........ Greenhouse gas holding lease transfer—transferee to be treated as applicant         400

Subdivision D—Application for greenhouse gas holding lease by the holder of a petroleum retention lease               400

343........ Application for greenhouse gas holding lease by the holder of a petroleum retention lease    400

344........ Grant of greenhouse gas holding lease—offer document................ 401

345........ Grant of greenhouse gas holding lease............................................ 402

346........ Retention lease transfer—transferee to be treated as applicant..... 402

Division 3—Renewal of greenhouse gas holding leases                       403

347........ Application for renewal of greenhouse gas holding lease............... 403

348........ Renewal of greenhouse gas holding lease—offer document............ 404

349........ Refusal to renew greenhouse gas holding lease............................... 406

350........ Renewal of greenhouse gas holding lease........................................ 408

Division 4—Directions                                                                                             409

351........ Responsible Commonwealth Minister may give directions to greenhouse gas holding lessees               409

352........ Compliance with directions............................................................ 410

Division 5—Special greenhouse gas holding lessee may be requested to apply for a greenhouse gas injection licence                                                                                 411

353........ Responsible Commonwealth Minister may request special greenhouse gas holding lessee to apply for a greenhouse gas injection licence............................................................................... 411

Division 6—Cancellation of certain greenhouse gas holding leases granted to the holders of petroleum retention leases                                                                                 412

354........ Cancellation of certain greenhouse gas holding leases granted to the holders of petroleum retention leases           412

Part 3.4—Greenhouse gas injection licences                                                      413

Division 1—General provisions                                                                          413

355........ Simplified outline............................................................................ 413

356........ Prohibition of unauthorised injection and storage of substances in offshore area   414

357........ Rights conferred by greenhouse gas injection licence..................... 414

358........ Conditions of greenhouse gas injection licences............................. 416

359........ Duration of greenhouse gas injection licence.................................. 419

360........ Termination of greenhouse gas injection licence if no injection operations for 5 years           420

Division 2—Obtaining a greenhouse gas injection licence                  422

Subdivision A—Application for greenhouse gas injection licence by the holder of a greenhouse gas assessment permit or greenhouse gas holding lease                                            422

361........ Application for greenhouse gas injection licence by greenhouse gas assessment permittee or greenhouse gas holding lessee............................................................................................... 422

362........ Offer document............................................................................... 425

363........ Refusal to grant greenhouse gas injection licence............................ 433

364........ Grant of greenhouse gas injection licence....................................... 433

365........ Deferral of decision to grant greenhouse gas injection licence—pending application for post‑commencement petroleum exploration permit.......................................................................... 434

366........ Greenhouse gas assessment permit or greenhouse gas holding lease ceases to be in force when greenhouse gas injection licence comes into force.................................................................. 434

367........ Greenhouse gas assessment permit transfer—transferee to be treated as applicant               435

368........ Greenhouse gas holding lease transfer—transferee to be treated as applicant         435

Subdivision B—Application for greenhouse gas injection licence by the holder of a petroleum production licence   436

369........ Application for greenhouse gas injection licence by the holder of a petroleum production licence        436

370........ Grant of greenhouse gas injection licence—offer document........... 440

371........ Refusal to grant greenhouse gas injection licence............................ 442

372........ Grant of greenhouse gas injection licence....................................... 443

373........ Petroleum production licence transferred—transferee to be treated as applicant   443

Division 3—Variations                                                                                             445

374........ Variation of matters specified in greenhouse gas injection licence—general            445

375........ Variation of matters specified in greenhouse gas injection licence—declaration of identified greenhouse gas storage formation varied.............................................................................. 446

Division 4—Directions                                                                                             447

376........ Responsible Commonwealth Minister may give greenhouse gas injection licensee directions to protect geological formations containing petroleum pools etc.................................... 447

377........ Consultation—directions to do something outside the licence area 449

378........ Compliance with directions............................................................ 450

Division 5—Dealing with serious situations                                                 452

379........ Serious situation............................................................................. 452

380........ Powers of responsible Commonwealth Minister to deal with serious situations   454

381........ Consultation—directions to do something outside the licence area 456

382........ Compliance with directions............................................................ 458

Division 6—Protection of petroleum discovered in the title area of a pre‑commencement petroleum title                                                                                                                    459

383........ Powers of responsible Commonwealth Minister to protect petroleum discovered in the title area of a pre‑commencement petroleum title................................................ 459

384........ Consultation—directions to do something outside the licence area 464

385........ Compliance with directions............................................................ 466

Division 7—Site closing certificates                                                                 467

386........ Application for site closing certificate............................................ 467

387........ Variation of application for site closing certificate......................... 470

388........ Issue of site closing certificate—pre‑certificate notice................... 471

389........ Acknowledgement of receipt of application for site closing certificate 473

390........ Refusal to give pre‑certificate notice.............................................. 473

391........ Pre‑certificate notice—security etc................................................ 474

392........ Issue of site closing certificate........................................................ 475

393........ Greenhouse gas injection licence transferred—transferee to be treated as applicant               475

394........ Duration of site closing certificate.................................................. 476

395........ Transfer of site closing certificate................................................... 476

396........ Transfer of securities...................................................................... 476

397........ Discharge of securities.................................................................... 477

398........ Recovery of the Commonwealth’s costs and expenses.................. 477

Division 8—Long‑term liabilities                                                                       478

399........ Closure assurance period................................................................ 478

400........ Indemnity—long‑term liability....................................................... 479

401........ Commonwealth to assume long‑term liability if licensee has ceased to exist          479

Part 3.5—Greenhouse gas search authorities                                                    481

Division 1—General provisions                                                                          481

402........ Simplified outline............................................................................ 481

403........ Rights conferred by greenhouse gas search authority..................... 482

404........ Conditions of greenhouse gas search authorities............................ 482

405........ Duration of greenhouse gas search authority.................................. 482

406........ Greenhouse gas search authority cannot be transferred................. 483

Division 2—Obtaining a greenhouse gas search authority                  484

407........ Application for greenhouse gas search authority........................... 484

408........ Grant or refusal of greenhouse gas search authority....................... 484

409........ Holders to be informed of the grant of another greenhouse gas search authority    485

410........ Holders to be informed of the grant of a petroleum special prospecting authority 485

Part 3.6—Greenhouse gas special authorities                                                   487

Division 1—General provisions                                                                          487

411........ Simplified outline............................................................................ 487

412........ Rights conferred by greenhouse gas special authority.................... 487

413........ Conditions of greenhouse gas special authorities........................... 487

414........ Duration of greenhouse gas special authority................................. 488

Division 2—Obtaining a greenhouse gas special authority                  489

415........ Application for greenhouse gas special authority.......................... 489

416........ Grant or refusal of greenhouse gas special authority...................... 490

417........ Consultation—grant of greenhouse gas special authority.............. 491

Division 3—Variation of greenhouse gas special authorities              493

418........ Variation of greenhouse gas special authority................................ 493

419........ Consultation—variation of greenhouse gas special authority........ 493

Division 4—Reporting obligations of holders of greenhouse gas special authorities    495

420........ Reporting obligations of holders of greenhouse gas special authorities 495

Division 5—Revocation of greenhouse gas special authorities         496

421........ Revocation of greenhouse gas special authority............................. 496

Part 3.7—Greenhouse gas research consents                                                    497

422........ Simplified outline............................................................................ 497

423........ Rights conferred by greenhouse gas research consent.................... 497

424........ Conditions of greenhouse gas research consents............................ 498

425........ Grant of greenhouse gas research consent...................................... 498

Part 3.8—Standard procedures                                                                                   499

426........ Application to be made in an approved manner............................. 499

427........ Application fee............................................................................... 499

428........ Application may set out additional matters................................... 500

429........ Responsible Commonwealth Minister may require further information 500

430........ Offer documents............................................................................. 501

431........ Acceptance of offer—request by applicant................................... 503

432........ Acceptance of offer—payment...................................................... 505

433........ Acceptance of offer—lodgment of security................................... 505

434........ Consultation—adverse decisions.................................................... 505

435........ Responsible Commonwealth Minister may require information about negotiations for a designated agreement   507

Part 3.9—Variation, suspension and exemption                                                509

Division 1—Variation, suspension and exemption decisions relating to greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences   509

436........ Variation, suspension and exemption—conditions of titles........... 509

437........ Extension of term of greenhouse gas assessment permit or greenhouse gas holding lease—suspension or exemption........................................................................................................ 511

438........ Suspension of rights—greenhouse gas assessment permit or greenhouse gas holding lease    512

439........ Extension of term of greenhouse gas assessment permit or greenhouse gas holding lease—suspension of rights   512

Division 2—Variation, suspension and exemption decisions relating to greenhouse gas search authorities and greenhouse gas special authorities       514

440........ Variation, suspension and exemption—conditions of greenhouse gas search authorities and greenhouse gas special authorities....................................................................................... 514

Part 3.10—Surrender of titles                                                                                      516

Division 1—Surrender of greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences                                           516

441........ Application for consent to surrender title...................................... 516

442........ Consent to surrender title............................................................... 516

443........ Surrender of title............................................................................. 520

Division 2—Surrender of greenhouse gas search authorities and greenhouse gas special authorities                                                                                                                    521

444........ Surrender of greenhouse gas search authority................................. 521

445........ Surrender of greenhouse gas special authority................................ 521

Part 3.11—Cancellation of titles                                                                                 522

Division 1—Cancellation of greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences                                           522

446........ Grounds for cancellation of title..................................................... 522

447........ Cancellation of title......................................................................... 523

448........ Consultation................................................................................... 524

449........ Cancellation of title not affected by other provisions.................... 524

Division 2—Cancellation of greenhouse gas search authorities       527

450........ Cancellation of greenhouse gas search authority............................ 527

Part 3.12—Other provisions                                                                                         528

451........ Notification of eligible greenhouse gas storage formation............... 528

452........ Notification of discovery of petroleum in greenhouse gas assessment permit area etc.          529

453........ Disposing of waste or other matter................................................ 530

454........ Additional securities etc................................................................. 531

455........ Transfer of securities...................................................................... 533

456........ Discharge of securities.................................................................... 533

457........ Approved site plans....................................................................... 533

458........ Co‑existence of greenhouse gas titles and petroleum titles............. 535

459........ Reservation of blocks..................................................................... 535

460........ Interference with other rights......................................................... 537

461........ No conditions about payment of money........................................ 538

462........ Certain portions of blocks to be blocks.......................................... 538

463........ Changes to the boundary of the coastal waters of a State or Territory 540

464........ Commonwealth may monitor the behaviour of a greenhouse gas substance stored in a part of a geological formation........................................................................................................ 541

465........ Monitoring information may be made publicly available............... 541

Chapter 4—Registration of transfers of, and dealings in, petroleum titles               542

Part 4.1—Introduction                                                                                                      542

466........ Simplified outline............................................................................ 542

467........ Definitions...................................................................................... 542

468........ Dealing—series of debentures........................................................ 543

Part 4.2—Register of titles and petroleum special prospecting authorities              544

469........ Register to be kept.......................................................................... 544

470........ Entries in Register—general............................................................ 544

471........ Entry in Register—cessation, revocation or expiry of title............ 546

Part 4.3—Transfer of titles                                                                                            547

472........ Approval and registration of transfers........................................... 547

473........ Application for approval of transfer.............................................. 547

474........ Documents to accompany application........................................... 547

475........ Application and documents to be forwarded to the responsible Commonwealth Minister    548

476........ Time limit for application............................................................... 548

477........ Date of application to be entered in Register................................. 548

478........ Approval of transfer....................................................................... 549

479........ Registration of transfer................................................................... 550

480........ Instrument of transfer does not create an interest in the title......... 550

481........ Limit on effect of approval of transfers......................................... 551

Part 4.4—Devolution of title                                                                                         552

482........ Application to have name entered on the Register as the holder of a title               552

483........ Entry of name in the Register......................................................... 552

Part 4.5—Change in name of company                                                                   553

484........ Application to have new name entered on the Register................. 553

485........ Alteration in the Register................................................................ 553

Part 4.6—Dealings relating to existing titles                                                      554

486........ Dealings to which this Part applies................................................ 554

487........ Approval and registration of dealings............................................. 555

488........ Application for approval of dealing............................................... 555

489........ Documents to accompany application........................................... 556

490........ Application and documents to be forwarded to the responsible Commonwealth Minister    557

491........ Timing of application..................................................................... 557

492........ Application date to be entered in Register..................................... 558

493........ Approval of dealing........................................................................ 558

494........ Entry of dealing in Register............................................................ 559

495........ Retention, inspection and return of instruments............................ 560

496........ Strict compliance with application provisions not required........... 561

497........ Limit on effect of approval of dealing............................................ 561

Part 4.7—Dealings in future interests                                                                     562

498........ Provisional application for approval of dealing.............................. 562

499........ Documents to accompany provisional application........................ 562

500........ Application and documents to be forwarded to the responsible Commonwealth Minister    564

501........ Timing of provisional application.................................................. 564

502........ Provisional application to be treated as an application under section 488 when title comes into existence           565

503........ Limit on approval of dealing........................................................... 565

Part 4.8—Correction and rectification of Register                                          567

504........ Corrections of clerical errors or obvious defects............................ 567

505........ General power of correction of Register......................................... 567

506........ Rectification of Register................................................................. 568

Part 4.9—Information‑gathering powers                                                               570

507........ Designated Authority may obtain information from applicants.... 570

508........ Designated Authority may obtain information from a party to an approved dealing             571

509........ Production and inspection of documents....................................... 572

510........ Designated Authority may retain documents................................. 574

Part 4.10—Other provisions                                                                                         575

511........ Designated Authority etc. not concerned with the effect of instrument lodged under this Chapter       575

512........ True consideration to be shown..................................................... 575

513........ Making a false entry in a Register.................................................. 576

514........ Falsified documents........................................................................ 576

515........ Inspection of Register and instruments.......................................... 576

516........ Evidentiary provisions................................................................... 577

517........ Assessment of fee........................................................................... 579

Chapter 5—Registration of transfers of, and dealings in, greenhouse gas titles   581

Part 5.1—Introduction                                                                                                      581

518........ Simplified outline............................................................................ 581

519........ Definitions...................................................................................... 581

520........ Dealing—series of debentures........................................................ 582

Part 5.2—Register of titles and greenhouse gas search authorities     583

521........ Register to be kept.......................................................................... 583

522........ Entries in Register—general............................................................ 583

523........ Entry in Register—cessation or expiry of title............................... 585

Part 5.3—Transfer of titles                                                                                            586

524........ Approval and registration of transfers........................................... 586

525........ Application for approval of transfer.............................................. 586

526........ Documents to accompany application........................................... 586

527........ Time limit for application............................................................... 587

528........ Date of application to be entered in Register................................. 587

529........ Approval of transfer....................................................................... 587

530........ Registration of transfer................................................................... 589

531........ Instrument of transfer does not create an interest in the title......... 590

532........ Limit on effect of approval of transfers......................................... 590

Part 5.4—Devolution of title                                                                                         591

533........ Application to have name entered on the Register as the holder of a title               591

534........ Entry of name in the Register......................................................... 591

Part 5.5—Change in name of company                                                                   592

535........ Application to have new name entered on the Register................. 592

536........ Alteration in the Register................................................................ 592

Part 5.6—Dealings relating to existing titles                                                      593

537........ Dealings to which this Part applies................................................ 593

538........ Approval and registration of dealings............................................. 594

539........ Application for approval of dealing............................................... 594

540........ Documents to accompany application........................................... 595

541........ Timing of application..................................................................... 596

542........ Application date to be entered in Register..................................... 596

543........ Approval of dealing........................................................................ 596

544........ Entry of dealing in Register............................................................ 597

545........ Retention, inspection and return of instruments............................ 598

546........ Strict compliance with application provisions not required........... 599

547........ Limit on effect of approval of dealing............................................ 599

Part 5.7—Dealings in future interests                                                                     600

548........ Provisional application for approval of dealing.............................. 600

549........ Documents to accompany provisional application........................ 600

550........ Timing of provisional application.................................................. 602

551........ Provisional application to be treated as an application under section 539 when title comes into existence           602

552........ Limit on approval of dealing........................................................... 603

Part 5.8—Correction and rectification of Register                                          604

553........ Corrections of clerical errors or obvious defects............................ 604

554........ General power of correction of Register......................................... 604

555........ Rectification of Register................................................................. 605

Part 5.9—Information‑gathering powers                                                               607

556........ Responsible Commonwealth Minister may obtain information from applicants   607

557........ Responsible Commonwealth Minister may obtain information from a party to an approved dealing   608

558........ Production and inspection of documents....................................... 609

559........ Responsible Commonwealth Minister may retain documents....... 611

Part 5.10—Other provisions                                                                                         612

560........ Responsible Commonwealth Minister not concerned with the effect of instrument lodged under this Chapter    612

561........ True consideration to be shown..................................................... 612

562........ Making a false entry in the Register............................................... 613

563........ Falsified documents........................................................................ 613

564........ Inspection of Register and instruments.......................................... 613

565........ Evidentiary provisions................................................................... 614

566........ Assessment of fee........................................................................... 616

Chapter 6—Administration                                                                                            618

Part 6.1—Operations                                                                                                        618

567........ Simplified outline............................................................................ 618

568........ Commencement of works or operations......................................... 618

569........ Work practices................................................................................ 619

570........ Work practices................................................................................ 621

571........ Insurance......................................................................................... 625

572........ Maintenance and removal of property etc. by titleholder.............. 626

Part 6.2—Directions relating to petroleum                                                          629

Division 1—Simplified outline                                                                              629

573........ Simplified outline............................................................................ 629

Division 2—General power to give directions                                            630

574........ General power to give directions.................................................... 630

575........ Notification of a direction that has an extended application.......... 632

576........ Compliance with direction.............................................................. 633

Division 3—Designated Authority may take action if there is a breach of a direction  635

577........ Designated Authority may take action if there is a breach of a direction                635

Division 4—Defence of taking reasonable steps to comply with a direction      637

578........ Defence of taking reasonable steps to comply with a direction..... 637

Part 6.3—Directions relating to greenhouse gas                                              638

Division 1—Simplified outline                                                                              638

579........ Simplified outline............................................................................ 638

Division 2—General power to give directions                                            639

580........ General power to give directions.................................................... 639

581........ Notification of a direction that has an extended application.......... 641

582........ Compliance with directions............................................................ 642

Division 3—Responsible Commonwealth Minister may take action if there is a breach of a direction                                                                                                                    644

583........ Responsible Commonwealth Minister may take action if there is a breach of a direction      644

Division 4—Defence of taking reasonable steps to comply with a direction      646

584........ Defence of taking reasonable steps to comply with a direction..... 646

Part 6.4—Restoration of the environment                                                            647

Division 1—Petroleum                                                                                             647

585........ Simplified outline............................................................................ 647

586........ Remedial directions to current holders of permits, leases and licences 647

587........ Remedial directions to former holders of permits, leases, licences and authorities etc.           650

588........ Designated Authority may take action if a direction has been breached 652

589........ Removal, disposal or sale of property by Designated Authority—breach of direction          653

590........ Removal, disposal or sale of property—limitation of action etc... 655

Division 2—Greenhouse gas                                                                                656

591........ Simplified outline............................................................................ 656

592........ Remedial directions to current holders of permits, leases and licences 656

593........ Site closing directions to current holders of greenhouse gas injection licences        659

594........ Consultation—directions to do something outside the licence area 662

595........ Remedial directions to former holders of permits, leases, licences and authorities etc.           663

596........ Responsible Commonwealth Minister may take action if a direction has been breached       665

597........ Removal, disposal or sale of property by responsible Commonwealth Minister—breach of direction 667

598........ Removal, disposal or sale of property—limitation of action etc... 669

Part 6.5—Offences and enforcement                                                                       670

Division 1—Petroleum                                                                                             670

599........ Simplified outline............................................................................ 670

600........ Appointment of petroleum project inspectors.............................. 670

601........ Monitoring powers of petroleum project inspectors..................... 671

602........ Warrants to enter residential premises........................................... 674

603........ Interfering with offshore petroleum installations or operations..... 675

604........ Forfeiture orders etc....................................................................... 676

Division 2—Greenhouse gas                                                                                678

605........ Simplified outline............................................................................ 678

606........ Appointment of greenhouse gas project inspectors....................... 678

607........ Monitoring powers of greenhouse gas project inspectors.............. 679

608........ Warrants to enter residential premises........................................... 682

609........ Interfering with greenhouse gas installations or operations............ 682

610........ Forfeiture orders etc....................................................................... 683

Division 3—Time for bringing proceedings for offences                       685

611........ Time for bringing proceedings for offences.................................... 685

Part 6.6—Safety zones and the area to be avoided                                         686

Division 1—Introduction                                                                                        686

612........ Simplified outline............................................................................ 686

613........ Simplified map of the area to which Schedule 2 applies................ 687

614........ Definitions...................................................................................... 688

615........ Authorised persons........................................................................ 691

Division 2—Petroleum safety zones                                                                 693

616........ Petroleum safety zones.................................................................. 693

Division 3—Greenhouse gas safety zones                                                    695

617........ Greenhouse gas safety zones.......................................................... 695

Division 4—Unauthorised vessel not to enter area to be avoided  697

618........ Designated Authority may authorise entry into area to be avoided 697

619........ Unauthorised vessel not to enter area to be avoided...................... 697

Division 5—Powers of authorised persons                                                   700

620........ Requirement to move vessel etc..................................................... 700

621........ Other powers of authorised persons.............................................. 701

622........ Warrants......................................................................................... 704

623........ Exercise of powers in serious circumstances.................................. 704

Part 6.7—Collection of fees and royalties                                                            706

Division 1—Fees payable under the Annual Fees Act                           706

624........ When fee due for payment............................................................. 706

625........ Late payment penalty.................................................................... 706

626........ Recovery of annual fee debts.......................................................... 707

627........ Amounts payable to the Designated Authority............................. 707

628........ Amounts payable to the Commonwealth....................................... 707

Division 2—Fees payable under the Registration Fees Act               708

629........ Fees payable to the Designated Authority..................................... 708

630........ Fees payable to the Commonwealth.............................................. 708

Division 3—Royalties payable under the Royalty Act                            709

631........ When royalty due for payment...................................................... 709

632........ When adjusted amount due for payment........................................ 709

633........ Late payment penalty.................................................................... 710

634........ Recovery of royalty debts.............................................................. 710

635........ Amounts payable to the Designated Authority............................. 711

Division 4—Fees payable under this Act                                                       712

636........ Fees payable under this Act........................................................... 712

Part 6.8—Occupational health and safety                                                             713

637........ Occupational health and safety...................................................... 713

638........ Listed OHS laws............................................................................. 713

639........ Regulations relating to occupational health and safety................... 714

640........ Commonwealth maritime legislation does not apply in relation to facilities located in offshore areas   714

641........ Commonwealth maritime legislation does not apply in relation to facilities located in designated coastal waters 715

Part 6.9—National Offshore Petroleum Safety Authority                           717

Division 1—Introduction                                                                                        717

642........ Simplified outline............................................................................ 717

643........ Definitions...................................................................................... 717

644........ Designated coastal waters............................................................... 721

Division 2—Establishment, functions and powers of the Safety Authority          723

645........ Establishment of the National Offshore Petroleum Safety Authority 723

646........ Safety Authority’s functions......................................................... 723

647........ Policy principles............................................................................. 724

648........ Safety Authority’s ordinary powers.............................................. 725

649........ References to functions and powers of the Safety Authority........ 725

650........ Safety Authority may be given additional powers in certain circumstances           726

651........ Power to refer matters to NOGSAC.............................................. 727

652........ Safety Authority is a body corporate............................................ 727

Division 3—National Offshore Petroleum Safety Authority Board  729

Subdivision A—Establishment, functions and membership                            729

653........ Establishment of Board.................................................................. 729

654........ Functions of the Board................................................................... 729

655........ Powers of the Board....................................................................... 730

656........ Membership................................................................................... 730

Subdivision B—Board procedures                                                                       731

657........ Board procedures............................................................................ 731

Subdivision C—Terms and conditions for Board members                            732

658........ Term of appointment and related matters for Board members...... 732

659........ Remuneration and allowances of Board members.......................... 732

660........ Leave of absence of Board members............................................... 732

661........ Resignation of Board members....................................................... 733

662........ Termination of appointment of Board members............................ 733

663........ Other terms and conditions of Board members.............................. 733

664........ Acting Board members................................................................... 734

Division 4—Chief Executive Officer and staff of the Safety Authority 735

665........ Appointment of the CEO............................................................... 735

666........ Duties of the CEO.......................................................................... 735

667........ Working with the Board................................................................. 735

668........ Remuneration and allowances of the CEO..................................... 736

669........ Leave of absence of the CEO.......................................................... 736

670........ Resignation of the CEO.................................................................. 736

671........ Notification of possible conflict of interest by CEO..................... 736

672........ Termination of CEO’s appointment.............................................. 737

673........ Other terms and conditions............................................................ 738

674........ Acting appointments...................................................................... 738

675........ Delegation by CEO......................................................................... 739

676........ Staff of the Safety Authority......................................................... 739

677........ Consultants and persons seconded to the Safety Authority.......... 739

Division 5—Corporate plans                                                                                741

678........ Corporate plans.............................................................................. 741

679........ Responsible Commonwealth Minister’s response to corporate plan 741

Division 6—OHS inspectors                                                                                 743

680........ Appointment of OHS inspectors................................................... 743

681........ Identity cards.................................................................................. 743

Division 7—National Offshore Petroleum Safety Account                   745

682........ National Offshore Petroleum Safety Account................................ 745

683........ Credits to the Account................................................................... 745

684........ Purposes of the Account................................................................ 746

Division 8—Other financial matters                                                                 747

685........ Fees for expenses incurred by the Safety Authority...................... 747

686........ Safety investigation levy................................................................ 747

687........ Safety case levy.............................................................................. 748

688........ Pipeline safety management plan levy........................................... 750

689........ Liability to taxation........................................................................ 750

Division 9—Miscellaneous                                                                                    752

690........ Annual reports................................................................................ 752

691........ Ministers may require the Safety Authority to prepare reports or give information             753

692........ Responsible Commonwealth Minister may give directions to the Safety Authority             754

693........ Prosecutions by the Director of Public Prosecutions under mirror provisions       756

694........ Australian Industrial Relations Commission may exercise powers under mirror provisions  756

695........ Reviews of operations of Safety Authority................................... 757

Chapter 7—Information relating to petroleum                                                   759

Part 7.1—Data management and gathering of information                        759

Division 1—Introduction                                                                                        759

696........ Simplified outline............................................................................ 759

Division 2—Data management                                                                            760

697........ Direction to keep records............................................................... 760

698........ Regulations about data management............................................... 761

Division 3—Information‑gathering powers                                                   764

699........ Designated Authority or petroleum project inspector may obtain information and documents             764

700........ Copying documents—reasonable compensation............................ 765

701........ Power to examine on oath or affirmation........................................ 766

702........ Self‑incrimination............................................................................ 766

703........ Copies of documents...................................................................... 766

704........ Designated Authority or petroleum project inspector may retain documents        767

705........ False or misleading information...................................................... 767

706........ False or misleading documents....................................................... 767

707........ False or misleading evidence........................................................... 768

Part 7.2—Release of regulatory information                                                      769

708........ Notifiable events—Gazette notice.................................................. 769

709........ Designated Authority to make documents available to responsible Commonwealth Minister               770

Part 7.3—Release of technical information                                                         771

Division 1—Introduction                                                                                        771

710........ Simplified outline............................................................................ 771

711........ Definitions...................................................................................... 771

Division 2—Protection of confidentiality of information and samples 773

Subdivision A—Information and samples obtained by the Designated Authority                773

712........ Protection of confidentiality of documentary information obtained by the Designated Authority        773

713........ Protection of confidentiality of petroleum mining samples obtained by the Designated Authority       773

714........ Designated Authority may make information or samples available to a Minister, a State Minister or a Northern Territory Minister.......................................................................... 774

Subdivision B—Information and samples obtained by a Minister                  774

715........ Protection of confidentiality of information obtained by a Minister 774

716........ Protection of confidentiality of petroleum mining samples obtained by a Minister               775

Subdivision C—Miscellaneous                                                                             775

717........ Fees................................................................................................. 775

718........ Review by Minister........................................................................ 775

719........ Privacy Act..................................................................................... 776

Division 3—Copyright                                                                                              777

720........ Publishing or making copies of applicable documents not an infringement of copyright        777

Division 4—Release of technical information given to the Designated Authority before 7 March 2000                                                                                                                    778

721........ Release of technical information given to the Designated Authority before 7 March 2000    778

Chapter 8—Information relating to greenhouse gas                                      779

Part 8.1—Data management and gathering of information                        779

Division 1—Introduction                                                                                        779

722........ Simplified outline............................................................................ 779

Division 2—Data management                                                                            780

723........ Direction to keep records............................................................... 780

724........ Regulations about data management............................................... 781

Division 3—Information‑gathering powers                                                   783

725........ Responsible Commonwealth Minister or greenhouse gas project inspector may obtain information and documents........................................................................................................ 783

726........ Copying documents—reasonable compensation............................ 785

727........ Power to examine on oath or affirmation........................................ 785

728........ Self‑incrimination............................................................................ 785

729........ Copies of documents...................................................................... 785

730........ Responsible Commonwealth Minister or greenhouse gas project inspector may retain documents       786

731........ False or misleading information...................................................... 786

732........ False or misleading documents....................................................... 787

733........ False or misleading evidence........................................................... 787

Part 8.2—Release of regulatory information                                                      788

734........ Notifiable events—Gazette notice.................................................. 788

Part 8.3—Release of technical information                                                         789

Division 1—Introduction                                                                                        789

735........ Simplified outline............................................................................ 789

736........ Definitions...................................................................................... 789

737........ Documents and samples given to the responsible Commonwealth Minister          790

Division 2—Protection of confidentiality of information and samples 791

Subdivision A—Information and samples obtained by the responsible Commonwealth Minister    791

738........ Protection of confidentiality of documentary information obtained by the responsible Commonwealth Minister........................................................................................................ 791

739........ Protection of confidentiality of eligible samples obtained by the responsible Commonwealth Minister               791

740........ Responsible Commonwealth Minister may make information or samples available to a Minister, a State Minister or a Northern Territory Minister.......................................................... 792

Subdivision B—Miscellaneous                                                                             792

741........ Fees................................................................................................. 792

742........ Privacy Act..................................................................................... 792

Division 3—Copyright                                                                                              793

743........ Publishing or making copies of applicable documents not an infringement of copyright        793

Chapter 9—Miscellaneous                                                                                            794

Part 9.1—Reconsideration and review of decisions                                        794

744........ Simplified outline............................................................................ 794

745........ Definitions...................................................................................... 794

746........ Reconsideration of reviewable delegated decision.......................... 795

747........ Review of reviewable Ministerial decision..................................... 797

Part 9.2—Expert advisory committees                                                                   798

748........ Establishment of expert advisory committees................................ 798

749........ Function of expert advisory committees........................................ 798

750........ Appointment of expert advisory committee members etc............. 800

751........ Procedures of expert advisory committees..................................... 800

752........ Remuneration and allowances......................................................... 800

753........ Leave of absence............................................................................. 801

754........ Resignation..................................................................................... 801

755........ Disclosure of interests to the responsible Commonwealth Minister 802

756........ Disclosure of interests to an expert advisory committee............... 802

757........ Other terms and conditions............................................................ 803

758........ Protection of information............................................................... 803

Part 9.3—Information relevant to the making of designated agreements  805

Division 1—Information‑gathering powers                                                   805

759........ Responsible Commonwealth Minister may obtain information and documents     805

760........ Copying documents—reasonable compensation............................ 806

761........ Self‑incrimination............................................................................ 807

762........ Copies of documents...................................................................... 807

763........ Responsible Commonwealth Minister may retain documents....... 807

764........ False or misleading information...................................................... 808

765........ False or misleading documents....................................................... 808

Division 2—Protection of information etc.                                                    809

766........ Protection of information............................................................... 809

767........ Disclosure of information to titleholder etc.................................... 809

Part 9.4—Liability for acts and omissions                                                            811

768........ Liability for acts and omissions...................................................... 811

Part 9.5—Jurisdiction of courts                                                                                   813

769........ Jurisdiction of State courts............................................................. 813

770........ Jurisdiction of Territory courts...................................................... 813

Part 9.6—Service of documents                                                                                  814

771........ Service of documents...................................................................... 814

772........ Service of documents on Joint Authority....................................... 816

773........ Service of documents on responsible Commonwealth Minister.... 816

774........ Service of documents on 2 or more registered holders of a petroleum title             816

775........ Service of documents on 2 or more registered holders of a greenhouse gas title      818

Part 9.7—Publication in Gazette                                                                                 820

776........ Publication in Gazette—State or external Territory....................... 820

777........ Publication in Gazette—Northern Territory.................................. 820

Part 9.8—Delegation by responsible Commonwealth Minister               821

778........ Delegation by responsible Commonwealth Minister..................... 821

Part 9.9—Public interest                                                                                                 822

779........ Public interest................................................................................. 822

Part 9.10—Compensation for acquisition of property                                    823

780........ Compensation for acquisition of property..................................... 823

Part 9.11—Regulations                                                                                                    824

781........ Regulations..................................................................................... 824

782........ Regulations dealing with specific matters....................................... 824

783........ Regulations may provide for matters by reference to codes of practice or standards             828

784........ Unconditional or conditional prohibition....................................... 828

785........ Regulations not limited by conditions provisions.......................... 828

786........ Exercise of Australia’s rights under international law—petroleum in the continental shelf    828

787........ Exercise of Australia’s rights under international law—injection and storage of greenhouse gas substances in the continental shelf.............................................................................. 829

788........ Exercise of Australia’s rights under international law—petroleum within territorial limits    829

789........ Exercise of Australia’s rights under international law—injection and storage of greenhouse gas substances within territorial limits............................................................................... 829

790........ Offences.......................................................................................... 830

Part 9.12—Transitional provisions                                                                            831

791........ Transitional provisions................................................................... 831


An Act about petroleum exploration and recovery, and the injection and storage of greenhouse gas substances, in offshore areas, and for other purposes

  

Chapter 1Introduction

Part 1.1Legislative formalities and background

  

1  Short title [see Note 1]

                   This Act may be cited as the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

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 and 2 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

29 March 2006

2.  Sections 3 to 5

A single day to be fixed by Proclamation.

1 July 2008 (see F2008L02273)

3.  Parts 1.2, 1.3 and 1.4

At the same time as the provision(s) covered by table item 2.

1 July 2008

4.  Chapters 2 to 6

At the same time as the provision(s) covered by table item 2.

1 July 2008

5.  Schedules 1, 2, 3, 4 and 5

At the same time as the provision(s) covered by table item 2.

1 July 2008

6.  Schedule 6, clauses 1 to 38

At the same time as the provision(s) covered by table item 2.

1 July 2008

7.  Schedule 6, clause 39

The day on which this Act receives the Royal Assent.

29 March 2006

8.  Schedule 6, clauses 40 to 42

At the same time as the provision(s) covered by table item 2.

1 July 2008

Note:          This table relates only to the provisions of this Act as originally passed by 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  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.

4  Simplified outline

                   The following is a simplified outline of this Act:

•      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.

•      An offshore area:

               (a)     starts 3 nautical miles from the baseline from which the breadth of the territorial sea is measured; and

               (b)     extends seaward to the outer limits of the continental shelf.

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

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

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

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

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

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

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

               (g)     a petroleum access authority (see Part 2.8);

               (h)     a greenhouse gas assessment permit (see Part 3.2);

                (i)     a greenhouse gas holding lease (see Part 3.3);

                (j)     a greenhouse gas injection licence (see Part 3.4);

               (k)     a greenhouse gas search authority (see Part 3.5);

                (l)     a greenhouse gas special authority (see Part 3.6).

•      Generally, the administration of this Act in relation to an offshore area of a State is divided between:

               (a)     the Joint Authority for the State (the Joint Authority is constituted by the responsible State Minister and the responsible Commonwealth Minister); and

               (b)     the Designated Authority for the State (the Designated Authority is the responsible State Minister).

•      Generally, the administration of this Act in relation to the Principal Northern Territory offshore area is divided between:

               (a)     the Joint Authority for that area (the Joint Authority is constituted by the responsible Northern Territory Minister and the responsible Commonwealth Minister); and

               (b)     the Designated Authority for that area (the Designated Authority is the responsible Northern Territory Minister).

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

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

Note:          Generally, the baseline is the line of lowest astronomical tide along the coast, but it also encompasses straight lines across bays (bay closing lines), rivers (river closing lines) and between islands, as well as along heavily indented areas of coastline (straight baselines) under certain circumstances.

5  Commonwealth‑State agreement (the Offshore Constitutional Settlement)

             (1)  This section explains the agreement known as the Offshore Constitutional Settlement, to the extent to which that agreement relates to exploring for, and exploiting, petroleum.

             (2)  The Commonwealth, the States and the Northern Territory have agreed that:

                     (a)  Commonwealth offshore petroleum legislation should be limited to the area that is outside the coastal waters of the States and the Northern Territory; and

                     (b)  for this purpose, the outer limits of State and Northern Territory coastal waters should start 3 nautical miles from the baseline of the territorial sea; and

                     (c)  the States and the Northern Territory should share, in the manner provided by this Act, in the administration of the Commonwealth offshore petroleum legislation; and

                     (d)  State and Northern Territory offshore petroleum legislation should apply to State and Northern Territory coastal waters; and

                     (e)  the Commonwealth, the States and the Northern Territory should try to maintain, as far as practicable, common principles, rules and practices in regulating and controlling the exploration for, and exploitation of, offshore petroleum beyond the baseline of Australia’s territorial sea.

             (3)  The table summarises other Acts that provide background to the Offshore Constitutional Settlement:

 

Other Acts

Item

Act

Summary of Act

1

Seas and Submerged Lands Act 1973

This Act:

(a) declared and enacted that the sovereignty in respect of the territorial sea and the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth; and

(b) gave the Governor‑General power to declare, by Proclamation, the limits of the territorial sea; and

(c) declared and enacted that the sovereignty in respect of waters of the sea that are on the landward side of the baseline of the territorial sea (but not within the limits of a State) and in respect of the associated airspace, seabed and subsoil is vested in and exercisable by the Crown in right of the Commonwealth; and

(d) declared and enacted that the sovereign rights of Australia as a coastal state in respect of the continental shelf of Australia (for the purpose of exploring it and exploiting its natural resources) are vested in and exercisable by the Crown in right of the Commonwealth; and

(e) gave the Governor‑General power to declare, by Proclamation, the limits of the continental shelf of Australia.

2

Coastal Waters (State Powers) Act 1980

This Act was enacted following a request from the Parliaments of all the States under paragraph 51(xxxviii) of the Constitution of the Commonwealth and provided that the legislative powers exercisable under the Constitution of each State extended to the making of certain laws that would operate offshore.

3

Coastal Waters (Northern Territory Powers) Act 1980

This Act makes similar provision to the Coastal Waters (State Powers) Act 1980 in relation to the Northern Territory.

4

Coastal Waters (State Title) Act 1980

This Act vested in each State certain property rights in the seabed beneath the coastal waters of the State.

5

Coastal Waters (Northern Territory Title) Act 1980

This Act makes similar provision to the Coastal Waters (State Title) Act 1980 in relation to the Northern Territory.

6

Offshore Minerals Act 1994

This Act makes provision, based on the Offshore Constitutional Settlement, for the licensing regime that applies to the exploration for, and recovery of, minerals (other than petroleum) in offshore areas.

6  Simplified maps

             (1)  This section sets out simplified maps illustrating areas off the coast of Australia that are relevant to this Act.

             (2)  In the interests of simplification:

                     (a)  coastlines and boundaries have been smoothed; and

                     (b)  the maps do not show certain waters within the limits of a State or Territory; and

                     (c)  the line marking the outer limits of the coastal waters of a State or Territory appears to be further out to sea than it actually is.

Map 1

             (3)  Map 1 illustrates the offshore areas and the scheduled areas:

Note 1:       As at the day on which the Bill that became this Act was introduced into the House of Representatives, certain maritime areas adjacent to Australia remained subject to delimitation with other countries. The full extent of Australia’s claimed exclusive economic zone and continental shelf jurisdiction has not been shown in this map. The claimed jurisdiction extends beyond the areas shown in this map.

Note 2:       Generally, the territorial sea baseline is the line of lowest astronomical tide along the coast, but it also encompasses straight lines across bays (bay closing lines), rivers (river closing lines) and between islands, as well as along heavily indented areas of coastline (straight baselines) under certain circumstances.

Note 3:       The location of the Joint Petroleum Development Area established under the Timor Sea Treaty is indicated on this map as the unshaded space abutting the offshore areas of Western Australia and the Northern Territory. The Joint Petroleum Development Area is not included in any offshore area as defined by this Act.

Map 2

             (4)  Map 2 zooms in and illustrates the offshore area of South Australia:

Map 3

             (5)  Map 3 zooms in and illustrates coastal waters and waters within the limits of South Australia:

Note:          The bays shown as being within the limits of South Australia are for illustrative purposes only.


 

Part 1.2Interpretation

Division 1General

7  Definitions

                   In this Act, unless the contrary intention appears:

Annual Fees Act means the Offshore Petroleum and Greenhouse Gas Storage (Annual Fees) Act 2006.

applied provisions has the meaning given by subsection 80(2).

approved:

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

                              (i)  Chapter 3;

                             (ii)  Chapter 5;

                            (iii)  Chapter 8;

                            (iv)  section 775;

                            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.

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

Note:          See section 457.

authority area:

                     (a)  when used in relation to a petroleum special prospecting authority—means the area constituted by the block or blocks that are the subject of the petroleum special prospecting authority; or

                     (b)  when used in relation to a petroleum access authority—means the area to which the petroleum access authority relates; 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.

block means a block constituted as provided by section 33 or 282.

cash‑bid greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Division 3 of Part 3.2.

cash‑bid petroleum exploration permit means:

                     (a)  a petroleum exploration permit granted under Division 3 of Part 2.2 of this Act; or

                     (b)  an exploration permit granted under section 22B of the repealed Petroleum (Submerged Lands) Act 1967; or

                     (c)  a petroleum exploration permit granted under Division 5 of Part 2.2 of this Act by way of the renewal of a permit referred to in paragraph (a) or (b); or

                     (d)  an exploration permit granted under section 32 of the repealed Petroleum (Submerged Lands) Act 1967 by way of the renewal of a permit referred to in paragraph (b).

charge, when used in relation to the assets of a body corporate, has the same meaning as in section 263 of the Corporations Act 2001.

closure assurance period has the meaning given by section 399.

COAG Reform Fund means the COAG Reform Fund established by section 5 of the COAG Reform Fund Act 2008.

coastal waters, in relation to a State or the Northern Territory, means so much of the scheduled area for the State or Territory as consists of:

                     (a)  the territorial sea; and

                     (b)  any waters that are:

                              (i)  on the landward side of the territorial sea; and

                             (ii)  not within the limits of the State or Territory.

For this purpose, assume that the breadth of the territorial sea of Australia had never been determined or declared to be greater than 3 nautical miles, but had continued to be 3 nautical miles.

construct includes place.

continental shelf means the continental shelf (within the meaning of the Seas and Submerged Lands Act 1973) adjacent to the coast of:

                     (a)  Australia (including the coast of any island forming part of a State or Territory); or

                     (b)  a Territory.

datum means a reference frame for defining geographic coordinates.

Note:          If the position on the surface of the Earth of a particular point is identified by a coordinate that is determined by reference to a particular datum, the use of a different datum will result in the same point being identified by a different coordinate.

debenture has the same meaning as in section 263 of the Corporations Act 2001.

declared greenhouse gas facility has the meaning given by section 18.

declared petroleum exploration permit has the meaning given by section 101.

declared petroleum production licence has the meaning given by section 164.

declared petroleum retention lease has the meaning given by section 138.

designated agreement has the meaning given by section 32.

Designated Authority has the meaning given by section 70 and, when used in the expression the Designated Authority, means the Designated Authority for the offshore area concerned.

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.

Eastern Greater Sunrise offshore area has the meaning given by Schedule 7.

Note:          The Eastern Greater Sunrise offshore area is a part of the offshore area of the Northern Territory.

eligible greenhouse gas storage formation has the meaning given by section 21.

engage in conduct means:

                     (a)  do an act; or

                     (b)  omit to perform an act.

expert advisory committee means a committee established under section 748.

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

expiry date:

                     (a)  when used in relation to a petroleum exploration permit, petroleum retention lease or petroleum production licence—has the meaning given by subsection 10(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 10(2).

explore:

                     (a)  when used in relation to petroleum—has a meaning affected by subsection 19(1); or

                     (b)  when used in relation to a potential greenhouse gas storage formation—has a meaning affected by subsections 19(2) and (3); or

                     (c)  when used in relation to a potential greenhouse gas injection site—has a meaning affected by subsection 19(4).

Federal Court means the Federal Court of Australia.

fixed‑term petroleum production licence means a petroleum production licence covered by item 2 or 3 of the table in subsection 165(1).

fundamental suitability determinants:

                     (a)  when used in relation to an eligible greenhouse gas storage formation—has the meaning given by subsection 21(8); or

                     (b)  when used in relation to an identified greenhouse gas storage formation—has the meaning given by subsection 312(11).

geographic coordinate includes:

                     (a)  a meridian of longitude by itself; and

                     (b)  a parallel of latitude by itself.

geological formation includes:

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

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

good oilfield practice means all those things that are generally accepted as good and safe in:

                     (a)  the carrying on of exploration for petroleum; or

                     (b)  petroleum recovery operations.

good processing and transport practice means all those things that are generally accepted as good and safe in:

                     (a)  the processing, conveyance, transport and storage of petroleum; and

                     (b)  the preparation of petroleum for transport.

graticular section has the meaning given by section 33.

Greater Sunrise unit area has the meaning given by Schedule 7.

Greater Sunrise unitisation agreement means the Agreement between the Government of Australia and the Government of the Democratic Republic of Timor‑Leste relating to the Unitisation of the Sunrise and Troubadour Fields, done at Dili on 6 March 2003.

Note:          In 2007, the text of international agreements was accessible through the Australian Treaties Library on the AustLII Internet site (www.austlii.edu.au).

Greater Sunrise unit reservoir petroleum production licence means a petroleum production licence in respect of one or more blocks within the Eastern Greater Sunrise offshore area that would allow the licensee to recover petroleum from either or both of the Greater Sunrise unit reservoirs.

Greater Sunrise unit reservoirs means the unit reservoirs within the meaning of the Greater Sunrise unitisation agreement.

Greater Sunrise visiting inspector means a petroleum project inspector who is specified in the identity card issued to that inspector under subsection 600(2) as being a Greater Sunrise visiting inspector.

greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Part 3.2.

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

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

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.

greenhouse gas holding lease means a greenhouse gas holding lease granted under Part 3.3.

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

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

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.

greenhouse gas injection licence means a greenhouse gas injection licence granted under Part 3.4.

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

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

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.

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).

greenhouse gas project inspector means a person appointed as a greenhouse gas project inspector under section 606.

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

greenhouse gas research consent means a greenhouse gas research consent granted under Part 3.7.

greenhouse gas search authority means a greenhouse gas search authority granted under Part 3.5.

greenhouse gas special authority means a greenhouse gas special authority granted under Part 3.6.

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.

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.

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

identified greenhouse gas storage formation has the meaning given by section 312.

incidental greenhouse gas‑related substance has the meaning given by section 23.

infrastructure facility has the meaning given by section 15.

infrastructure licence means an infrastructure licence granted under:

                     (a)  Part 2.5 of this Act; or

                     (b)  Division 3A of Part III of the repealed Petroleum (Submerged Lands) Act 1967.

infrastructure licence area means the licence area of an infrastructure licence.

infrastructure licensee means the registered holder of an infrastructure licence.

Joint Authority has the meaning given by section 56 and, when used in the expression the Joint Authority, means the Joint Authority for the offshore area concerned.

Joint Petroleum Development Area has the same meaning as in the Petroleum (Timor Sea Treaty) Act 2003.

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.

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.

lease area:

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

lessee:

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

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

licence area:

                     (a)  when used in relation to an infrastructure licence—means the place in relation to which the infrastructure licence is in force; or

                     (b)  when used in relation to a petroleum production licence—means the area constituted by the block or blocks that are the subject of the petroleum production licence; 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.

Note:          The place in relation to which an infrastructure licence is in force must be a place in an offshore area—see subsection 198(2) and section 199.

licensee:

                     (a)  when used in relation to a petroleum production licence—means the registered holder of the petroleum production licence; or

                     (b)  when used in relation to an infrastructure licence—means the registered holder of the infrastructure licence; or

                     (c)  when used in relation to a pipeline licence—means the registered holder of the pipeline licence; or

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

life‑of‑field petroleum production licence means a petroleum production licence covered by item 1, 3A or 4 of the table in subsection 165(1).

listed OHS laws has the meaning given by section 638.

location means a block or blocks in relation to which a declaration under section 131 is in force.

natural resources has the same meaning as in paragraph 4 of Article 77 of the United Nations Convention on the Law of the Sea done at Montego Bay on 10 December 1982.

Note:          Paragraph 4 of Article 77 is as follows:

The natural resources referred to in this Part consist of the mineral and other non‑living resources of the seabed and subsoil together with living organisms belonging to sedentary species, that is to say, organisms which, at the harvestable stage, either are immobile on or under the seabed or are unable to move except in constant physical contact with the seabed or the subsoil.

New Zealand boundary treaty means the Treaty between Australia and New Zealand establishing certain exclusive economic zone boundaries and continental shelf boundaries that was signed at Adelaide on 25 July 2004.

Northern Territory title means an authority, however described, under a law of the Northern Territory, to explore for, or to recover, petroleum.

offshore area means:

                     (a)  the offshore area of New South Wales; or

                     (b)  the offshore area of Victoria; or

                     (c)  the offshore area of Queensland; or

                     (d)  the offshore area of Western Australia; or

                     (e)  the offshore area of South Australia; or

                      (f)  the offshore area of Tasmania; or

                     (g)  the Principal Northern Territory offshore area; or

                     (h)  the Eastern Greater Sunrise offshore area; or

                      (i)  the offshore area of Norfolk Island; or

                      (j)  the offshore area of the Territory of Christmas Island; or

                     (k)  the offshore area of the Territory of Cocos (Keeling) Islands; or

                      (l)  the offshore area of the Territory of Ashmore and Cartier Islands; or

                    (m)  the offshore area of the Territory of Heard Island and McDonald Islands;

and, when used in the expression the offshore area, means whichever of the areas referred to in paragraph (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l) or (m) is applicable.

Note 1:       The offshore area of a State or Territory is defined by section 8.

Note 2:       The offshore area of a State or Territory corresponds to the term adjacent area under the repealed Petroleum (Submerged Lands) Act 1967.

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

original petroleum exploration permit means a petroleum exploration permit granted otherwise than by way of renewal.

original petroleum production licence means a petroleum production licence granted otherwise than by way of renewal.

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

partly cancelled means:

                     (a)  in relation to a petroleum exploration permit or petroleum production licence—cancelled as to one or more, but not all, of the blocks the subject of the permit or licence; and

                     (b)  in relation to a pipeline licence—cancelled as to a part of the pipeline the subject of the licence.

partly revoked, in relation to a petroleum exploration permit or petroleum retention lease, means revoked as to one or more, but not all, of the blocks the subject of the permit or lease.

partly surrendered, in relation to a petroleum exploration permit, petroleum production licence or greenhouse gas injection licence, means surrendered as to one or more, but not all, of the blocks the subject of the permit or licence.

partly terminated, in relation to a pipeline licence, means terminated as to a part of the pipeline the subject of the licence.

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

permit area:

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

permittee:

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

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

petroleum means:

                     (a)  any naturally occurring hydrocarbon, whether in a gaseous, liquid or solid state; or

                     (b)  any naturally occurring mixture of hydrocarbons, whether in a gaseous, liquid or solid state; or

                     (c)  any naturally occurring mixture of:

                              (i)  one or more hydrocarbons, whether in a gaseous, liquid or solid state; and

                             (ii)  one or more of the following, that is to say, hydrogen sulphide, nitrogen, helium and carbon dioxide;

and:

                     (d)  includes any petroleum as defined by paragraph (a), (b) or (c) that has been returned to a natural reservoir; and

                     (e)  for the purposes of the pipeline provisions, also includes any petroleum as defined by paragraph (a), (b), (c) or (d), where:

                              (i)  one or more things have been added; or

                             (ii)  one or more things have been wholly or partly removed;

                            or both; and

                      (f)  for the purposes of the pipeline provisions, also includes any mixture that:

                              (i)  has been recovered from a well; and

                             (ii)  includes petroleum as defined by paragraph (a), (b), (c) or (d);

                            whether or not:

                            (iii)  one or more things have been added; or

                            (iv)  one or more things have been wholly or partly removed;

                            or both.

petroleum access authority means:

                     (a)  a petroleum access authority granted under Part 2.8 of this Act; or

                     (b)  an access authority granted under section 112 of the repealed Petroleum (Submerged Lands) Act 1967.

petroleum exploration permit means:

                     (a)  a work‑bid petroleum exploration permit; or

                     (b)  a cash‑bid petroleum exploration permit; or

                     (c)  a special petroleum exploration permit.

petroleum exploration permit area means the permit area of a petroleum exploration permit.

petroleum exploration permittee means the registered holder of a petroleum exploration permit.

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).

petroleum pool means a naturally occurring discrete accumulation of petroleum.

petroleum production licence means:

                     (a)  a petroleum production licence granted under Part 2.4 of this Act; or

                     (b)  a production licence granted under Division 3 of Part III of the repealed Petroleum (Submerged Lands) Act 1967; or

                     (c)  a production licence granted under section 148 of the repealed Petroleum (Submerged Lands) Act 1967.

petroleum production licence area means the licence area of a petroleum production licence.

petroleum production licensee means the registered holder of a petroleum production licence.

petroleum project inspector means a person appointed as a petroleum project inspector under section 600.

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

petroleum retention lease means:

                     (a)  a petroleum retention lease granted under Part 2.3 of this Act; or

                     (b)  a retention lease granted under Division 2A of Part III of the repealed Petroleum (Submerged Lands) Act 1967.

petroleum retention lease area means the lease area of a petroleum retention lease.

petroleum retention lessee means the registered holder of a petroleum retention lease.

petroleum scientific investigation consent means:

                     (a)  a petroleum scientific investigation consent granted under Part 2.9 of this Act; or

                     (b)  a scientific investigation consent granted under section 123 of the repealed Petroleum (Submerged Lands) Act 1967.

petroleum special prospecting authority means:

                     (a)  a petroleum special prospecting authority granted under Part 2.7 of this Act; or

                     (b)  a special prospecting authority granted under section 111 of the repealed Petroleum (Submerged Lands) Act 1967.

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.

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

pipeline means:

                     (a)  a petroleum pipeline; or

                     (b)  a greenhouse gas pipeline.

pipeline licence means a pipeline licence granted under:

                     (a)  Part 2.6 of this Act; or

                     (b)  Division 4 of Part III of the repealed Petroleum (Submerged Lands) Act 1967.

pipeline licensee means the registered holder of a pipeline licence.

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 569(1).

post‑commencement petroleum exploration permit means:

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

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

post‑commencement petroleum production licence means:

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

                              (i)  a post‑commencement petroleum exploration permit; or

                             (ii)  a post‑commencement petroleum retention lease;

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

                     (b)  a petroleum production licence granted under section 181; or

                     (c)  a petroleum production licence granted under section 183, where the initial petroleum production licence mentioned in section 182 was a post‑commencement petroleum production licence.

post‑commencement petroleum retention lease means:

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

                              (i)  a post‑commencement petroleum exploration permit; or

                             (ii)  a post‑commencement petroleum production licence;

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

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

                              (i)  a post‑commencement petroleum exploration permit; or

                             (ii)  a post‑commencement petroleum production licence;

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

post‑commencement petroleum title means:

                     (a)  a post‑commencement petroleum exploration permit; or

                     (b)  a post‑commencement petroleum retention lease; or

                     (c)  a post‑commencement petroleum production licence.

potential greenhouse gas injection site has the meaning given by section 22.

potential greenhouse gas storage formation has the meaning given by section 20.

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

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

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

pre‑commencement petroleum title means:

                     (a)  a pre‑commencement petroleum exploration permit; or

                     (b)  a pre‑commencement petroleum retention lease; or

                     (c)  a pre‑commencement petroleum production licence.

Principal Northern Territory offshore area means so much of the offshore area of the Northern Territory as does not consist of the Eastern Greater Sunrise offshore area.

Note:          The offshore area of the Northern Territory is defined by section 8.

pumping station means:

                     (a)  a greenhouse gas pumping station; or

                     (b)  a petroleum pumping station.

Register:

                     (a)  when used in Chapter 4—has the meaning given by section 467; or

                     (b)  when used in Chapter 5—has the meaning given by section 519.

registered holder, in relation to a title, means the person whose name is shown in the Register kept under section 469 or 521 as the holder of the title. For this purpose, a title is a petroleum exploration permit, petroleum retention lease, petroleum production licence, infrastructure licence, pipeline licence, petroleum special prospecting authority, petroleum access authority, greenhouse gas assessment permit, greenhouse gas holding lease, greenhouse gas injection licence, greenhouse gas search authority or greenhouse gas special authority.

Registration Fees Act means the Offshore Petroleum and Greenhouse Gas Storage (Registration Fees) Act 2006.

regulated operation means:

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

                     (b)  an activity to which Chapter 3 applies.

For the purposes of paragraph (b), assume that each reference in subsection 356(1) to a substance were a reference to a greenhouse gas substance.

renewal:

                     (a)  when used in relation to a petroleum exploration permit, petroleum retention lease or petroleum production licence—has the meaning given by subsection 11(1); or

                     (b)  when used in relation to a greenhouse gas assessment permit or greenhouse gas holding lease—has the meaning given by subsection 11(2).

responsible Commonwealth Minister means:

                     (a)  the Minister who is responsible for the administration of this Act; or

                     (b)  another Minister acting for and on behalf of the Minister referred to in paragraph (a).

responsible Northern Territory Minister means:

                     (a)  the Minister of the Northern Territory who is authorised under a law of the Northern Territory to perform the functions of a Designated Authority under this Act; or

                     (b)  another Minister of the Northern Territory acting for and on behalf of the Minister referred to in paragraph (a).

responsible State Minister, in relation to a State, means:

                     (a)  the Minister of the State who is authorised under a law of the State to perform the functions of a Designated Authority under this Act; or

                     (b)  another Minister of the State acting for and on behalf of the Minister referred to in paragraph (a).

Royalty Act means the Offshore Petroleum (Royalty) Act 2006.

Safety Authority means the National Offshore Petroleum Safety Authority continued in existence by section 645.

scheduled area, in relation to a State or Territory, has the meaning given by Schedule 1.

secondary line means a pipe, or system of pipes, for:

                     (a)  returning petroleum to a natural reservoir; or

                     (b)  conveying petroleum for use for petroleum exploration operations; or

                     (c)  conveying petroleum for use for petroleum recovery operations; or

                     (d)  conveying petroleum that is to be flared or vented; or

                     (e)  conveying petroleum from a well, wherever located, to a terminal station in an offshore area without passing through another terminal station.

serious situation, in relation to an identified greenhouse gas storage formation, has the meaning given by section 379.

significant risk has a meaning affected by section 25, 26, 27, 28 or 29.

site closing certificate means a certificate issued under section 392.

site plan, in relation to an identified greenhouse gas storage formation, has the meaning given by section 24.

spatial extent of an eligible greenhouse gas storage formation has the meaning given by subsection 21(3).

special greenhouse gas holding lease means a greenhouse gas holding lease granted under section 338.

special petroleum exploration permit means:

                     (a)  a petroleum exploration permit granted under Division 4 of Part 2.2 of this Act; or

                     (b)  an exploration permit granted under section 27 of the repealed Petroleum (Submerged Lands) Act 1967; or

                     (c)  a petroleum exploration permit granted under Division 5 of Part 2.2 of this Act by way of the renewal of a permit referred to in paragraph (a) or (b); or

                     (d)  an exploration permit granted under section 32 of the repealed Petroleum (Submerged Lands) Act 1967 by way of the renewal of a permit referred to in paragraph (b).

State title means an authority, however described, under a law of a State, to explore for, or to recover, petroleum.

tank station means:

                     (a)  a greenhouse gas tank station; or

                     (b)  a petroleum tank station.

term:

                     (a)  when used in relation to a petroleum exploration permit, petroleum retention lease, petroleum production licence, infrastructure licence, pipeline licence, petroleum special prospecting authority or petroleum access authority—has the meaning given by subsection 10(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 10(2).

terminal point has the meaning given by section 17.

terminal station has the meaning given by section 16.

Territory means a Territory in which this Act applies or to which this Act extends.

tied, in relation to a greenhouse gas holding lease or greenhouse gas injection licence, has the meaning given by section 13.

Timor Sea Treaty means the Timor Sea Treaty between Australia and East Timor, done on 20 May 2002 [2003] ATS 13, as amended from time to time.

Note:          In 2007, the text of international agreements in the Australian Treaty Series was accessible through the Australian Treaties Library on the AustLII Internet site (www.austlii.edu.au).

Timor Sea Treaty Designated Authority means the Designated Authority within the meaning of the Petroleum (Timor Sea Treaty) Act 2003.

title:

                     (a)  when used in the definition of registered holder—has the meaning given by the second sentence of that definition; or

                     (b)  when used in Subdivision A of Division 2 of Part 1.2—has the meaning given by section 38; or

                     (c)  when used in Division 3 of Part 1.2—has the meaning given by section 50; or

                     (d)  when used in section 76—has the meaning given by subsection 76(4); or

                     (e)  when used in section 282—has the meaning given by subsection 282(6); or

                      (f)  when used in section 462—has the meaning given by subsection 462(6); or

                     (g)  when used in Chapter 4—has the meaning given by section 467; or

                     (h)  when used in section 574—has the meaning given by subsection 574(1); or

                      (i)  when used in Chapter 5—has the meaning given by section 519; or

                      (j)  when used in section 580—has the meaning given by subsection 580(1).

title area:

                     (a)  when used in Division 3 of Part 1.2—has the meaning given by section 51; or

                     (b)  when used in section 572—has the meaning given by subsection 572(1); or

                     (c)  when used in section 586—has the meaning given by subsection 586(6).

titleholder:

                     (a)  when used in Division 3 of Part 1.2—has the meaning given by section 51; or

                     (b)  when used in section 572—has the meaning given by subsection 572(1).

vacated area has the meaning given by section 14.

valve station means:

                     (a)  a greenhouse gas valve station; or

                     (b)  a petroleum valve station.

vessel means a vessel used in navigation, other than air navigation, and includes a barge, lighter or other floating vessel.

water line means a pipe, or system of pipes, for conveying water in connection with:

                     (a)  petroleum exploration operations; or

                     (b)  petroleum recovery operations; 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.

well means a hole in the seabed or subsoil made by drilling, boring or any other means in connection with:

                     (a)  exploration for petroleum; or

                     (b)  petroleum recovery operations; 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;

but does not include a seismic shot hole.

Western Greater Sunrise area has the meaning given by Schedule 7.

Note:          Activities occurring in the Western Greater Sunrise area in relation to the exploration, development and exploitation of the Greater Sunrise unit reservoirs are dealt with under the Petroleum (Timor Sea Treaty) Act 2003.

wholly cancelled, in relation to a petroleum exploration permit, petroleum production licence or pipeline licence, means cancelled as to all the blocks, or as to the whole of the pipeline, the subject of the permit or licence.

wholly revoked, in relation to a petroleum exploration permit or petroleum retention lease, means revoked as to all the blocks the subject of the permit or lease.

wholly terminated, in relation to a pipeline licence, means terminated as to the whole of the pipeline the subject of the licence.

work‑bid greenhouse gas assessment permit means a greenhouse gas assessment permit granted under Division 2 of Part 3.2.

work‑bid petroleum exploration permit means:

                     (a)  a petroleum exploration permit granted under Division 2 of Part 2.2 of this Act; or

                     (b)  an exploration permit granted under section 22 of the repealed Petroleum (Submerged Lands) Act 1967; or

                     (c)  a petroleum exploration permit granted under Division 5 of Part 2.2 of this Act by way of the renewal of a permit referred to in paragraph (a) or (b); or

                     (d)  an exploration permit granted under section 32 of the repealed Petroleum (Submerged Lands) Act 1967 by way of the renewal of a permit referred to in paragraph (b).

8  Offshore areas of the States and Territories

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

 

Offshore areas

Item

The offshore area of...

is...

1

(a) New South Wales; or

(b) Victoria; or

(c) South Australia; or

(d) Tasmania

so much of the scheduled area for that State as comprises waters of the sea that are:

(a) beyond the outer limits of the coastal waters of that State; and

(b) within the outer limits of the continental shelf.

2

Queensland

both of the following areas:

(a) so much of the scheduled area for Queensland as comprises waters of the sea that are:

(i) beyond the outer limits of the coastal waters of Queensland; and

(ii) within the outer limits of the continental shelf;

(b) the Coral Sea area (as defined by subsection (2)).

3

Western Australia

so much of the scheduled area for Western Australia as comprises waters of the sea that are:

(a) beyond the outer limits of the coastal waters of Western Australia; and

(b) within the outer limits of the continental shelf; and

(c) not within the Joint Petroleum Development Area.

4

the Northern Territory

so much of the scheduled area for the Northern Territory as comprises waters of the sea that are:

(a) beyond the outer limits of the coastal waters of the Northern Territory; and

(b) within the outer limits of the continental shelf; and

(c) not within the Joint Petroleum Development Area.

5

the Territory of Ashmore and Cartier Islands

so much of the scheduled area for that Territory as consists of land and water that is:

(a) within the outer limits of the continental shelf; and

(b) not within the Joint Petroleum Development Area.

6

Norfolk Island

the area whose boundaries are:

(a) the coastline at mean low water of Norfolk Island; and

(b) the outer limit of the superjacent waters of the continental shelf adjacent to the coast of Norfolk Island.

7

the Territory of Heard Island and McDonald Islands

the area whose boundaries are:

(a) the coastlines at mean low water of the islands comprising that Territory; and

(b) the outer limit of the superjacent waters of the continental shelf adjacent to the coasts of those islands.

8

the Territory of Christmas Island

the area whose boundaries are:

(a) the coastline at mean low water of Christmas Island; and

(b) the outer limit of the superjacent waters of the continental shelf adjacent to the coast of Christmas Island.

9

the Territory of Cocos (Keeling) Islands

both of the following areas:

(a) the area whose boundaries are the coastline at mean low water of the north atoll of that Territory (otherwise called North Keeling Island), and the outer limit of the superjacent waters of the continental shelf adjacent to the coast of that Island;

(b) the area whose boundaries are the coastlines at mean low water of the remaining islands of that Territory, and the outer limit of the superjacent waters of the continental shelf adjacent to the coasts of those islands.

Note:          The offshore area of a State or Territory corresponds to the adjacent area under the repealed Petroleum (Submerged Lands) Act 1967.

             (2)  For the purposes of this section, the Coral Sea area is so much of the area to the east of the area described in paragraph (a) of item 2 of the table in subsection (1) as comprises waters of the sea that are within the outer limits of the continental shelf, other than any part of that area that is:

                     (a)  to the south of the parallel of Latitude 25° South; or

                     (b)  on the landward side of the coastline of any island at mean low water.

Note:          For datum, see section 40.

Territory of Ashmore and Cartier Islands—land taken to be beneath the sea etc.

             (3)  This Act has effect in relation to so much of the offshore area of the Territory of Ashmore and Cartier Islands as consists of land as if that land were:

                     (a)  beneath the sea; and

                     (b)  part of the seabed and subsoil of that offshore area.

Areas of the continental shelf over which Australia does not exercise sovereign rights

             (4)  For the purposes of:

                     (a)  an item in the table in subsection (1); and

                     (b)  subsection (2);

the continental shelf does not include any area of seabed and subsoil that, as a result of an agreement in force between Australia and a foreign country, is not an area over which Australia exercises sovereign rights.

9  Spaces above and below offshore areas

                   For the purposes of this Act:

                     (a)  the space above or below an offshore area is taken to be in that area; and

                     (b)  the space above or below an area that is part of an offshore area is taken to be in that part.

10  Term of titles

Petroleum titles

             (1)  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 petroleum exploration permit; or

(b) a petroleum retention lease; or

(c) a petroleum production licence; or

(d) an infrastructure licence; or

(e) a pipeline licence; or

(f) a petroleum special prospecting authority; or

(g) a petroleum access authority;

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

2

a year of the term of:

(a) a petroleum exploration permit; or

(b) a petroleum retention lease; or

(c) a petroleum production licence; or

(d) an infrastructure licence; or

(e) a pipeline 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 petroleum exploration permit; or

(b) a petroleum retention lease; or

(c) a petroleum production licence;

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

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.

11  Renewal of titles

Petroleum titles

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

 

Renewal of titles

 

Column 1

Column 2

Item

A reference in this Act to...

is a reference to...

1

the renewal, or the grant of a renewal, of a petroleum exploration permit

the grant of a petroleum exploration permit over some or all of the blocks specified in the permit mentioned in column 1, to begin on:

(a) the day after the expiry date of the permit mentioned in column 1; or

(b) the day after the expiry date of the petroleum exploration permit granted on a previous renewal of the permit mentioned in column 1.

2

the renewal, or the grant of a renewal, of a petroleum retention lease

the grant of a petroleum retention lease over all of the blocks in relation to which the lease mentioned in column 1 was in force, to begin on:

(a) the day after the expiry date of the lease mentioned in column 1; or

(b) the day after the expiry date of the petroleum retention lease granted on a previous renewal of the lease mentioned in column 1.

3

the renewal, or the grant of a renewal, of a petroleum production licence

the grant of a petroleum production licence over the block or blocks specified in the licence mentioned in column 1, to begin on:

(a) the day after the expiry date of the licence mentioned in column 1; or

(b) the day after the expiry date of the petroleum production licence granted on a previous renewal of the licence mentioned in column 1.

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.

12  Variation of titles

Petroleum titles

             (1)  If a petroleum exploration permit, petroleum retention lease, petroleum production licence, infrastructure licence, pipeline licence, petroleum special prospecting authority or petroleum access 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.

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.

13  Tied titles

Scope

             (1)  This section applies if a greenhouse gas holding lease (the greenhouse gas lease) is granted under section 345 to the registered holder of a petroleum 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 petroleum retention lease granted by way of renewal of the petroleum lease;

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

14  Vacated area

                   For the purposes of this Act, the table has effect:

 

Vacated area

Item

In the case of...

the vacated area is...

1

a petroleum exploration permit, petroleum retention lease or petroleum production licence that has expired

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

2

a petroleum exploration permit, petroleum retention lease or petroleum production licence that has been wholly revoked or partly revoked

the area constituted by the blocks as to which the permit, lease or licence was so revoked.

3

a petroleum exploration permit or petroleum production licence that has been wholly cancelled or partly cancelled

the area constituted by the blocks as to which the permit or licence was so cancelled.

4

a petroleum retention lease that has been cancelled

the lease area.

5

a petroleum production licence that has been terminated

the licence area.

6

an infrastructure licence that has been cancelled or terminated

the licence area.

7

a pipeline licence that has been wholly or partly terminated

the part of the offshore area in which the pipeline or the part of the pipeline was constructed.

8

a pipeline licence that has been wholly cancelled or partly cancelled

the part of the offshore area in which the pipeline or the part of the pipeline was constructed.

9

a petroleum special prospecting authority that:

(a) has been surrendered or cancelled; or

(b) has expired

the authority area.

10

a petroleum access authority that:

(a) has been revoked or surrendered; or

(b) has expired

the authority area.

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.

15  Infrastructure facilities

Definition

             (1)  For the purposes of this Act, an infrastructure facility is a facility, structure or installation for engaging in any of the activities to which subsection (2) or (3) applies, so long as:

                     (a)  the facility, structure or installation rests on the seabed; or

                     (b)  the facility, structure or installation is fixed or connected to the seabed (whether or not the facility is floating); or

                     (c)  the facility, structure or installation is attached or tethered to a facility, structure or installation referred to in paragraph (a) or (b).

Petroleum activities

             (2)  This subsection applies to the following activities:

                     (a)  remote control of facilities, structures or installations used to recover petroleum in a petroleum production licence area;

                     (b)  processing petroleum recovered in any place, including:

                              (i)  converting petroleum into another form by physical or chemical means, or both (for example, converting it into liquefied natural gas or methanol); and

                             (ii)  partial processing of petroleum (for example, by removing water);

                     (c)  storing petroleum before it is transported to another place;

                     (d)  preparing petroleum for transport to another place (for example, pumping or compressing);

                     (e)  activities related to any of the above;

but, except as mentioned in paragraph (a), this subsection does not apply to exploring for, or recovering, petroleum.

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.

16  Terminal station

             (1)  The Designated Authority may, by notice published in the Gazette, declare any of the following to be a terminal station for the purposes of this Act:

                     (a)  a specified petroleum pumping station in an offshore area;

                     (b)  a specified petroleum tank station in an offshore area;

                     (c)  a specified petroleum valve station in an offshore area.

             (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.

17  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.

18  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.

19  Extended meaning of explore

Petroleum

             (1)  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 petroleum;

the person is taken to explore for petroleum.

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.

20  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.

21  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.

             (4)  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.

             (5)  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.

22  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.

23  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.

24  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.

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

             (1)  For the purposes of sections 100, 101, 137, 138, 163 and 164 and paragraph 749(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 100, 101, 137, 138, 163 and 164 and paragraph 749(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 100, 101, 137, 138, 163 and 164 and paragraph 749(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.

26  Significant risk of a significant adverse impact—grant of petroleum production licence

             (1)  For the purposes of sections 171 and 173, the question of whether there is a significant risk that any of the operations that could be carried on under a petroleum 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 171 and 173, an operation that could be carried on under a petroleum production licence (the petroleum 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 petroleum 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 171 and 173, if there is a risk that an operation that could be carried on under a petroleum production licence (the petroleum 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 petroleum production licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.

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

             (1)  For the purposes of sections 292 and 321 and paragraph 749(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 petroleum exploration permit; or

                     (b)  an existing petroleum retention lease; or

                     (c)  an existing petroleum production licence; or

                     (d)  a future petroleum exploration permit; or

                     (e)  a future petroleum retention lease; or

                      (f)  a future petroleum 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 292 and 321 and paragraph 749(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 petroleum exploration permit; or

                     (b)  an existing petroleum retention lease; or

                     (c)  an existing petroleum production licence; or

                     (d)  a future petroleum exploration permit; or

                     (e)  a future petroleum retention lease; or

                      (f)  a future petroleum 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 292 and 321 and paragraph 749(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 petroleum exploration permit; or

                     (b)  an existing petroleum retention lease; or

                     (c)  an existing petroleum production licence; or

                     (d)  a future petroleum exploration permit; or

                     (e)  a future petroleum retention lease; or

                      (f)  a future petroleum 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.

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

             (1)  For the purposes of sections 362 and 370 and paragraph 749(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 petroleum exploration permit; or

                     (b)  an existing petroleum retention lease; or

                     (c)  an existing petroleum production licence; or

                     (d)  a future petroleum exploration permit; or

                     (e)  a future petroleum retention lease; or

                      (f)  a future petroleum 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 362 and 370 and paragraph 749(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 petroleum exploration permit; or

                     (b)  an existing petroleum retention lease; or

                     (c)  an existing petroleum production licence; or

                     (d)  a future petroleum exploration permit; or

                     (e)  a future petroleum retention lease; or

                      (f)  a future petroleum 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 362 and 370 and paragraph 749(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 petroleum exploration permit; or

                     (b)  an existing petroleum retention lease; or

                     (c)  an existing petroleum production licence; or

                     (d)  a future petroleum exploration permit; or

                     (e)  a future petroleum retention lease; or

                      (f)  a future petroleum 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.

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

             (1)  For the purposes of section 383 and paragraph 749(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 383 and paragraph 749(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 383 and paragraph 749(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.

30  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.

31  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 454; 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 388.

32  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 100(5)(f);

                     (b)  paragraph 100(6)(d);

                     (c)  subsection 100(10);

                     (d)  paragraph 137(5)(f);

                     (e)  paragraph 137(6)(d);

                      (f)  subsection 137(10);

                     (g)  paragraph 163(5)(f);

                     (h)  paragraph 163(6)(d);

                      (i)  subsection 163(10);

                      (j)  paragraph 292(5)(d);

                     (k)  paragraph 292(6)(d);

                      (l)  subsection 292(11);

                    (m)  subsection 292(12);

                     (n)  paragraph 321(5)(d);

                     (o)  paragraph 321(6)(d);

                     (p)  subsection 321(11);

                     (q)  subsection 321(12);

                      (r)  subparagraph 362(1)(d)(iii);

                      (s)  subparagraph 362(1)(e)(iii);

                      (t)  subparagraph 362(2)(d)(iii);

                     (u)  subparagraph 362(2)(e)(iii);

                     (v)  paragraph 362(3)(a);

                    (w)  subparagraph 370(d)(v);

                     (x)  paragraph 370(e);

                     (y)  paragraph 370(f);

                      (z)  paragraph 370(g);

                    (za)  paragraph 383(1)(e).

33  Graticulation of Earth’s surface and constitution of blocks

Graticular sections

             (1)  For the purposes of this Act, the surface of the Earth is taken to be divided:

                     (a)  by the meridian of Greenwich and by meridians that are at an angular distance from that meridian of 5 minutes, or a multiple of 5 minutes, of longitude; and

                     (b)  by the equator and by parallels of latitude that are at an angular distance from the equator of 5 minutes, or a multiple of 5 minutes, of latitude;

into sections called graticular sections, each of which is bounded:

                     (c)  by portions of 2 of those meridians that are at an angular distance from each other of 5 minutes of longitude; and

                     (d)  by portions of 2 of those parallels of latitude that are at an angular distance from each other of 5 minutes of latitude.

Simplified map

             (2)  This subsection sets out a simplified map illustrating graticular sections off the coast of Western Australia in the vicinity of Barrow Island:

Blocks

             (3)  For the purposes of this Act:

                     (a)  a graticular section that is wholly within an offshore area constitutes a block; and

                     (b)  if a part only of a graticular section is, or parts only of a graticular section are, within an offshore area, the area of that part, or of those parts, constitutes a block.

Note:          See also section 282 (certain portions of blocks to be blocks).

Block that is constituted by a graticular section

             (4)  A reference in this Act to a block that is constituted by a graticular section includes a reference to a block that is constituted by the area of a part only, or by the areas of parts only, of a graticular section.

Graticular section that constitutes a block

             (5)  A reference in this Act to a graticular section that constitutes a block includes a reference to:

                     (a)  a graticular section only part of which constitutes a block; or

                     (b)  a graticular section only parts of which constitute a block.

Note:          For datum, see section 39.

34  External Territories

                   This Act extends to the following external Territories:

                     (a)  Norfolk Island;

                     (b)  the Territory of Christmas Island;

                     (c)  the Territory of Cocos (Keeling) Islands;

                     (d)  the Territory of Ashmore and Cartier Islands;

                     (e)  the Territory of Heard Island and McDonald Islands.

35  Application of Act

                   This Act applies to:

                     (a)  all individuals, whether or not Australian citizens, and whether or not resident in the Commonwealth or a Territory; and

                     (b)  all corporations, whether or not incorporated or carrying on business in the Commonwealth or a Territory.

36  Certain pipelines provisions to apply subject to international obligations

             (1)  This section applies to the provisions of this Act to the extent to which they relate to a pipeline for the conveyance of petroleum recovered from a place beyond the outer limits of any offshore area.

             (2)  The provisions have effect subject to Australia’s obligations under international law, including obligations under any agreement between Australia and any foreign country or countries.


 

Division 2Datum provisions

Subdivision ADatum for ascertaining the position of points etc.

37  Objects

                   The objects of this Subdivision are:

                     (a)  to use the Australian Geodetic Datum to determine the position of graticular sections or blocks; and

                     (b)  to use the Geocentric Datum of Australia to determine the position of certain other areas; and

                     (c)  to enable the position of a point, line or area to be described, in a title or other instrument under this Act, using:

                              (i)  the Geocentric Datum of Australia; or

                             (ii)  another datum identified in the regulations;

                            (but not so as to change the position of a point, line or area).

38  Definitions

                   In this Subdivision:

Australian Geodetic Datum means the Australian Geodetic Datum as defined in Gazette No. 84 of 6 October 1966 (AGD66 geodetic data set).

Geocentric Datum of Australia means the Geocentric Datum of Australia as defined in Gazette No. 35 of 6 September 1995 (GDA94 geocentric data set).

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.

instrument under this Act does not include the regulations.

petroleum title means:

                     (a)  a petroleum exploration permit; or

                     (b)  a petroleum retention lease; or

                     (c)  a petroleum production licence; or

                     (d)  an infrastructure licence; or

                     (e)  a pipeline licence; or

                      (f)  a petroleum special prospecting authority; or

                     (g)  a petroleum access authority.

this Act includes the regulations.

title means:

                     (a)  a greenhouse gas title; or

                     (b)  a petroleum title.

39  Australian Geodetic Datum

             (1)  For the purposes of this Act, the position on the surface of the Earth of a graticular section or block is to be determined by reference to the Australian Geodetic Datum.

Note:          Australian Geodetic Datum is defined in section 38.

             (2)  Subsection (1) does not apply for the purposes of describing, in a title or other instrument under this Act, the position on the surface of the Earth of a point, line or area.

40  Geocentric Datum of Australia

             (1)  For the purposes of this Act, the position on the surface of the Earth of:

                     (a)  the parallel of latitude described in subsection 8(2); or

                     (b)  an area described in Schedule 1; or

                     (c)  the area described in Schedule 2; or

                     (d)  the area described in Schedule 7;

is to be determined by reference to the Geocentric Datum of Australia.

Note 1:       Subsection 8(2) describes the Coral Sea area.

Note 2:       Schedule 1 describes the scheduled areas for the States and Territories. See also sections 48 and 49 (points and lines specified in the New Zealand boundary treaty).

Note 3:       Schedule 2 describes the area that includes the area to be avoided.

Note 3A:    Schedule 7 describes the Greater Sunrise unit area, the Eastern Greater Sunrise offshore area and the Western Greater Sunrise area.

Note 4:       Geocentric Datum of Australia is defined in section 38.

             (2)  Subsection (1) does not apply for the purposes of describing, in a title or other instrument under this Act, the position on the surface of the Earth of a point, line or area.

41  Current datum, previous datum and changeover time

             (1)  The regulations may declare that, for the purposes of describing, in a title or other instrument under this Act, the position on the surface of the Earth of a point, line or area:

                     (a)  a specified datum is the current datum; and

                     (b)  that datum replaces the previous datum.

             (2)  The previous datum is:

                     (a)  if a datum is the first datum declared to be the current datum under subsection (1)—the Geocentric Datum of Australia; or

                     (b)  in any other case—the datum that was the current datum immediately before the changeover time.

             (3)  The changeover time is the time when the declaration takes effect.

             (4)  Before the first declaration under subsection (1) takes effect, the Geocentric Datum of Australia applies for the purposes of describing, in a title or other instrument under this Act, the position on the surface of the Earth of a point, line or area.

42  Use of current datum

                   For the purposes of this Act, after the changeover time, for a title or instrument set out in the table, the position on the surface of the Earth of a point, line or area set out in the table is to be described by reference to the current datum, and the relevant title or instrument may be annotated accordingly:

 

Points, lines and areas

Item

Title or instrument

Point, line or area

1

a petroleum exploration permit

the permit area of a petroleum exploration permit granted after the changeover time

2

a petroleum retention lease

the lease area of a petroleum retention lease granted after the changeover time

3

a petroleum production licence

the licence area of a petroleum production licence granted after the changeover time

4

an infrastructure licence

the licence area of an infrastructure licence granted after the changeover time

5

a petroleum special prospecting authority

the authority area of a petroleum special prospecting authority granted after the changeover time

6

a petroleum access authority

the authority area of a petroleum access authority granted after the changeover time

7

a pipeline licence

the route of a pipeline authorised by a pipeline licence granted after the changeover time

8

any other instrument under this Act

a point, line or area set out in any other instrument under this Act made after the changeover time

Note:          A grant of a petroleum exploration permit, a petroleum retention lease or a petroleum production licence may be a grant by way of renewal—see section 11.

43  Use of previous datum

             (1)  For the purposes of this Act, after the changeover time, for a title or instrument set out in the table, the position on the surface of the Earth of a point, line or area set out in the table is to be described by reference to the previous datum:

 

Points, lines and areas

Item

Title or instrument

Point, line or area

1

a petroleum exploration permit

the permit area of a petroleum exploration permit that was in force immediately before the changeover time

2

a petroleum retention lease

the lease area of a petroleum retention lease that was in force immediately before the changeover time

3

a petroleum production licence

the licence area of a petroleum production licence that was in force immediately before the changeover time

4

an infrastructure licence

the licence area of an infrastructure licence that was in force immediately before the changeover time

5

a petroleum special prospecting authority

the authority area of a petroleum special prospecting authority that was in force immediately before the changeover time

6

a petroleum access authority

the authority area of a petroleum access authority that was in force immediately before the changeover time

7

a pipeline licence

the route of a pipeline authorised by a pipeline licence that was in force immediately before the changeover time

8

any other instrument under this Act

a point, line or area set out in any other instrument under this Act that was in force immediately before the changeover time

             (2)  Subsection (1) has effect subject to section 44 (which deals with variation of titles and instruments).

44  Variation of titles and instruments

                   The table has effect:

 

Variation of titles and instruments

Item

The regulations may authorise the Designated Authority to issue an instrument varying...

for the sole purpose of...

1

a petroleum exploration permit that was in force immediately before the changeover time

relabelling the permit area using geographic coordinates based on the current datum.

2

a petroleum retention lease that was in force immediately before the changeover time

relabelling the lease area using geographic coordinates based on the current datum.

3

a petroleum production licence that was in force immediately before the changeover time

relabelling the licence area using geographic coordinates based on the current datum.

4

an infrastructure licence that was in force immediately before the changeover time

relabelling the licence area using geographic coordinates based on the current datum.

5

a petroleum special prospecting authority or a petroleum access authority that was in force immediately before the changeover time

relabelling the authority area using geographic coordinates based on the current datum.

6

a pipeline licence that was in force immediately before the changeover time

relabelling the route of the pipeline using geographic coordinates based on the current datum.

7

any other instrument under this Act that:

(a) sets out a point, line or area; and

(b) was in force immediately before the changeover time

relabelling the point, line or area using geographic coordinates based on the current datum.

8

a title or other instrument under this Act

inserting an annotation about the applicable datum.

Note:          For publication in the Gazette of notice of the variation, see section 708.

45  Variation of applications for titles

                   The regulations may authorise the Designated Authority to issue an instrument varying an application for a title for the sole purpose of relabelling a point, line or area by reference to geographic coordinates based on the current datum.

46  No change to actual position of point, line or area

                   This Subdivision does not authorise any change to the position on the surface of the Earth of a point, line or area.

47  Transitional regulations

                   The regulations may make provision for matters of a transitional nature arising from the change from the previous datum to the current datum.

48  International Seabed Agreements

                   This Subdivision has effect subject to section 49.

Note:          Section 49 deals with International Seabed Agreements.

Subdivision BCertain points etc. specified in an International Seabed Agreement to be ascertained by other means

49  Certain points etc. specified in an International Seabed Agreement to be ascertained by other means

             (1)  This section applies if, for the purposes of this Act or the regulations, or for the purposes of an instrument under this Act or the regulations, it is necessary to determine the position on the surface of the Earth of:

                     (a)  a point or line specified in an International Seabed Agreement; or

                     (b)  a point on, or part of, such a line.

             (2)  That position must be determined in accordance with:

                     (a)  that Agreement; or

                     (b)  if that Agreement is varied—in accordance with that Agreement as varied for the time being.

             (3)  In this section:

International Seabed Agreement means:

                     (a)  the Agreement between Australia and Indonesia establishing certain seabed boundaries signed at Canberra on 18 May 1971; or

                     (b)  the Agreement between Australia and Indonesia establishing certain seabed boundaries in the area of the Timor and Arafura Seas supplementary to the Agreement referred to in paragraph (a) and signed at Jakarta on 9 October 1972; or

                     (c)  the Agreement between Australia and Indonesia concerning certain boundaries between Papua New Guinea and Indonesia signed at Jakarta on 12 February 1973; or

                     (d)  the Treaty between Australia and the Independent State of Papua New Guinea concerning sovereignty and maritime boundaries in the area between the 2 countries, including the area known as the Torres Strait, and related matters that was signed at Sydney on 18 December 1978; or

                     (e)  the New Zealand boundary treaty.


 

Division 3Apportionment of petroleum recovered from adjoining title areas

50  Title

                   In this Division:

title means:

                     (a)  a petroleum exploration permit; or

                     (b)  a petroleum retention lease; or

                     (c)  a petroleum production licence.

51  Titleholder and title area

                   For the purposes of this Division, the table has effect:

 

Titleholder and title area

Item

In the case of...

the titleholder is...

and the title area is...

1

a petroleum exploration permit

the permittee

the permit area.

2

a petroleum retention lease

the lessee

the lease area.

3

a petroleum production licence

the licensee

the licence area.

52  Petroleum recovered through inclined well

                   For the purposes of this Act, if:

                     (a)  a wellhead is situated in the title area of a title (the first title); and

                     (b)  the well from that wellhead is inclined so as to enter a petroleum pool at a place within an adjoining title area of a title (the second title) of the same titleholder; and

                     (c)  the pool does not extend to the title area of the first title;

any petroleum recovered through that well is taken to have been recovered in the adjoining title area under the second title.

53  Petroleum pool straddling 2 title areas etc.

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

                     (a)  a petroleum pool is partly in the title area of a title and partly in an adjoining title area of a title of the same titleholder (whether in the same offshore area or not); and

                     (b)  petroleum is recovered from that pool through a well or wells in one or both of the title areas;

then:

                     (c)  there is taken to have been recovered in each of the title areas, under the title in relation to the title area, such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool; and

                     (d)  the respective proportions are to be determined by agreement between:

                              (i)  the titleholder; and

                             (ii)  the Joint Authority;

                            or, in the absence of agreement, by the Federal Court or a relevant Supreme Court on the application of the titleholder or the Joint Authority.

Supreme Court

             (2)  A reference in this section to a relevant Supreme Court is a reference to the Supreme Court of the State, or one of the States, in the offshore area of which the petroleum pool is wholly or partly situated.

Northern Territory

             (3)  This section applies to the Northern Territory as if that Territory were a State.

Note:          The offshore area of a State or Territory is defined by section 8.

54  Petroleum pool straddling Commonwealth title area and State title area etc.

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

                     (a)  a petroleum pool is partly in the title area of a title and partly in an area (the State title area) in which the titleholder has authority under the law of a State to explore for, or recover, petroleum; and

                     (b)  petroleum is recovered from that pool through a well or wells in the title area of the title, the State title area, or both;

then:

                     (c)  there is taken to have been recovered in the title area of the title such proportion of all petroleum so recovered as may reasonably be treated as being derived from that area, having regard to the nature and probable extent of the pool; and

                     (d)  that proportion is to be determined by agreement between:

                              (i)  the titleholder of the title; and

                             (ii)  the Joint Authority; and

                            (iii)  the responsible State Minister;

                            or, in the absence of agreement, by the Federal Court or a relevant Supreme Court on the application of:

                            (iv)  the titleholder of the title; or

                             (v)  the Joint Authority; or

                            (vi)  the responsible State Minister.

Supreme Court

             (2)  A reference in this section to a relevant Supreme Court is a reference to the Supreme Court of the State, or one of the States, in the offshore area of which the petroleum pool is wholly or partly situated.

Northern Territory

             (3)  This section applies to the Northern Territory as if:

                     (a)  that Territory were a State; and

                     (b)  the responsible Northern Territory Minister were the responsible State Minister of that State.

Note:          The offshore area of a State or Territory is defined by section 8.

55  Unit development

                   For the purposes of this Act, if:

                     (a)  a petroleum pool is:

                              (i)  partly in a petroleum production licence area; and

                             (ii)  partly in another area (whether in the offshore area or not) in relation to which another person has authority (whether under this Act or under the law of a State or the Northern Territory) to explore for or recover petroleum; and

                     (b)  a unit development agreement in accordance with section 191 is in force between the licensee and that other person; and

                     (c)  petroleum is recovered from that pool through a well or wells in the licence area, the other area or both;

there is taken to have been recovered in that licence area such proportion of all petroleum so recovered as is specified in, or determined in accordance with, the agreement.


 

Part 1.3Joint Authorities and Designated Authorities

Division 1Joint Authorities

56  Joint Authorities

             (1)  For the purposes of this Act, there is a Joint Authority for each offshore area.

State

             (2)  The Joint Authority for an offshore area of a State is constituted by:

                     (a)  the responsible State Minister; and

                     (b)  the responsible Commonwealth Minister;

and is to be known as the Commonwealth‑[name of State] Offshore Petroleum Joint Authority.

             (3)  The Joint Authority for an offshore area of a State is taken to be the Joint Authority for the State.

Principal Northern Territory offshore area

             (4)  The Joint Authority for the Principal Northern Territory offshore area is constituted by:

                     (a)  the responsible Northern Territory Minister; and

                     (b)  the responsible Commonwealth Minister;

and is to be known as the Commonwealth‑Northern Territory Offshore Petroleum Joint Authority.

             (5)  The Commonwealth‑Northern Territory Offshore Petroleum Joint Authority is taken to be the Joint Authority for the Northern Territory.

Eastern Greater Sunrise offshore area

             (6)  The responsible Commonwealth Minister is the Joint Authority for the Eastern Greater Sunrise offshore area, and is to be known as the Greater Sunrise Offshore Petroleum Joint Authority.

             (7)  The Greater Sunrise Offshore Petroleum Joint Authority is taken not to be the Joint Authority for the Northern Territory.

External Territories

             (8)  The responsible Commonwealth Minister is the Joint Authority for the offshore area of each of the following external Territories:

                     (a)  Norfolk Island;

                     (b)  the Territory of Christmas Island;

                     (c)  the Territory of Cocos (Keeling) Islands;

                     (d)  the Territory of Ashmore and Cartier Islands;

                     (e)  the Territory of Heard Island and McDonald Islands;

and is to be known as the [name of Territory] Offshore Petroleum Joint Authority.

Note:          For example, the Joint Authority for the offshore area of the Territory of Ashmore and Cartier Islands is to be known as the Territory of Ashmore and Cartier Islands Offshore Petroleum Joint Authority.

             (9)  The Joint Authority for the offshore area of an external Territory is taken to be the Joint Authority for that Territory.

57  Functions and powers of Joint Authorities

             (1)  A Joint Authority for a State or Territory (other than the Northern Territory) has, in relation to the offshore area for that State or Territory, the functions and powers that this Act confers on a Joint Authority.

             (2)  The Joint Authority for the Principal Northern Territory offshore area has, in relation to that offshore area, the functions and powers that this Act confers on a Joint Authority.

             (3)  The Joint Authority for the Eastern Greater Sunrise offshore area has, in relation to that offshore area, the functions and powers that this Act confers on a Joint Authority.

58  Procedure of Joint Authority

             (1)  A Joint Authority for a State or the Northern Territory may conduct its business:

                     (a)  at meetings of the Joint Authority; or

                     (b)  by written or other communication between the members of the Joint Authority.

             (2)  A written communication under paragraph (1)(b) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003.

59  Decision‑making

             (1)  This section applies to decisions to be made by a Joint Authority for a State or the Northern Territory on matters that are within the Joint Authority’s functions or powers.

             (2)  If:

                     (a)  the responsible Commonwealth Minister; and

                     (b)  the responsible State Minister or the responsible Northern Territory Minister, as the case may be;

disagree about a decision, the responsible Commonwealth Minister may decide the matter, and the responsible Commonwealth Minister’s decision has effect as the Joint Authority’s decision.

             (3)  If:

                     (a)  the responsible Commonwealth Minister gives:

                              (i)  in the case of a State—the responsible State Minister; or

                             (ii)  in the case of the Northern Territory—the responsible Northern Territory Minister;

                            written notice of a decision that the responsible Commonwealth Minister thinks should be made on a matter; and

                     (b)  30 days pass after the notice is given, and:

                              (i)  in the case of a State—the responsible State Minister has not told the responsible Commonwealth Minister what decision the responsible State Minister thinks should be made; or

                             (ii)  in the case of the Northern Territory—the responsible Northern Territory Minister has not told the responsible Commonwealth Minister what decision the responsible Northern Territory Minister thinks should be made;

the responsible Commonwealth Minister may decide the matter, and the responsible Commonwealth Minister’s decision has effect as the Joint Authority’s decision.

60  Opinion or state of mind of Joint Authority

                   For the purposes of this Act, the opinion or state of mind of the Joint Authority for a State or the Northern Territory is:

                     (a)  if:

                              (i)  the responsible Commonwealth Minister; and

                             (ii)  the responsible State Minister or the responsible Northern Territory Minister, as the case may be;

                            agree on the matter concerned—the opinion or state of mind of the 2 Ministers; or

                     (b)  if the 2 Ministers disagree—the opinion or state of mind of the responsible Commonwealth Minister.

61  Records of decisions of Joint Authority

             (1)  The Designated Authority must cause to be kept written records of the decisions of the Joint Authority for a State or the Northern Territory.

             (2)  A record kept under subsection (1) is prima facie evidence that the decision was duly made as recorded if the record is signed by a person who was a member of the Joint Authority at the time when the decision was made.

             (3)  A record kept under subsection (1) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003.

62  Signing of documents

             (1)  If a document is signed by the Designated Authority on behalf of the Joint Authority for a State or the Northern Territory, the document is taken to have been duly executed by the Joint Authority.

             (2)  The document is taken to be in accordance with a decision of the Joint Authority unless the contrary is proved.

63  Communications with Joint Authority

                   All communications to or by the Joint Authority for a State or the Northern Territory are to be made through the Designated Authority.

64  Judicial notice of signature of member of a Joint Authority

Joint Authority for a State or the Northern Territory

             (1)  All courts must take judicial notice of:

                     (a)  the signature of a person who is, or has been:

                              (i)  a member of the Joint Authority for a State or the Northern Territory; or

                             (ii)  a delegate of the Joint Authority for a State or the Northern Territory; and

                     (b)  the fact that the person is, or was at a particular time:

                              (i)  a member of the Joint Authority for that State or the Northern Territory, as the case may be; or

                             (ii)  a delegate of the Joint Authority for that State or the Northern Territory, as the case may be.

Joint Authority for the Eastern Greater Sunrise offshore area

             (2)  All courts must take judicial notice of:

                     (a)  the signature of a person who is, or has been:

                              (i)  the Joint Authority for the Eastern Greater Sunrise offshore area; or

                             (ii)  a delegate of the Joint Authority for the Eastern Greater Sunrise offshore area; and

                     (b)  the fact that the person is, or was at a particular time:

                              (i)  the Joint Authority for that offshore area; or

                             (ii)  a delegate of the Joint Authority for that offshore area.

Joint Authority for an external Territory

             (3)  All courts must take judicial notice of:

                     (a)  the signature of a person who is, or has been:

                              (i)  the Joint Authority for the offshore area of an external Territory; or

                             (ii)  a delegate of the Joint Authority for the offshore area of an external Territory; and

                     (b)  the fact that the person is, or was at a particular time:

                              (i)  the Joint Authority for that offshore area; or

                             (ii)  a delegate of the Joint Authority for that offshore area.

Definition

             (4)  In this section:

court includes a person authorised to receive evidence:

                     (a)  by a law of the Commonwealth, a State or a Territory; or

                     (b)  by consent of parties.

65  Issue of documents, and service of notices, on behalf of Joint Authority

             (1)  If this Act requires or allows a Joint Authority for a State or the Northern Territory to:

                     (a)  execute or issue an instrument; or

                     (b)  give a notice; or

                     (c)  communicate a matter;

the Designated Authority is to do so on behalf of the Joint Authority in accordance with a decision of the Joint Authority.

             (2)  For the purposes of any proceedings:

                     (a)  an instrument that purports to be executed or issued by the Designated Authority on behalf of the Joint Authority is taken to have been executed or issued in accordance with a decision of the Joint Authority; and

                     (b)  a notice that purports to be given by the Designated Authority on behalf of the Joint Authority is taken to have been given in accordance with a decision of the Joint Authority; and

                     (c)  a communication that purports to be made by the Designated Authority on behalf of the Joint Authority is taken to have been made in accordance with a decision of the Joint Authority;

unless the contrary is proved.

66  Delegation by a Joint Authority for a State or the Northern Territory

             (1)  A Joint Authority for a State or the Northern Territory may, by written instrument, delegate any or all of the functions or powers of the Joint Authority under this Act or the regulations to 2 persons together, each of whom is one of the following:

                     (a)  an APS employee who is an SES employee or acting SES employee;

                     (b)  an employee of a State or of the Northern Territory.

Note:          The expressions APS employee, SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901.

             (2)  A delegation under this section:

                     (a)  must specify one person as representing the responsible Commonwealth Minister; and

                     (b)  must specify the other person as representing the responsible State Minister or responsible Northern Territory Minister of the Joint Authority; and

                     (c)  must be signed by both members of the Joint Authority.

Note:          See also sections 34AA and 34AB of the Acts Interpretation Act 1901.

             (3)  If the Joint Authority delegates a function or power under this section, the delegation continues in force despite:

                     (a)  a vacancy in the office of responsible Commonwealth Minister; or

                     (b)  a change in the identity of the holder of the office of responsible Commonwealth Minister; or

                     (c)  a vacancy in the office of responsible State Minister or responsible Northern Territory Minister, as the case may be; or

                     (d)  a change in the identity of the holder of the office of responsible State Minister or responsible Northern Territory Minister, as the case may be.

             (4)  Despite subsection (3), a delegation under this section may be revoked by the Joint Authority in accordance with subsection 33(3) of the Acts Interpretation Act 1901.

             (5)  If a delegation is made under this section, sections 59 and 60 do not apply to the delegates.

             (6)  If the delegates are unable to agree on a matter requiring decision, they must refer the matter to the Joint Authority.

             (7)  In the application to the delegates of a provision of this Act containing a reference to the opinion or state of mind of the Joint Authority, the reference is to be read as a reference to the opinion or state of mind of the 2 delegates of the Joint Authority unless they disagree.

             (8)  A referral under subsection (6) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003.

67  Delegation by Greater Sunrise Offshore Petroleum Joint Authority

             (1)  The Greater Sunrise Offshore Petroleum Joint Authority may, by written instrument, delegate to:

                     (a)  an APS employee who is an SES employee or acting SES employee; or

                     (b)  an employee of the Northern Territory;

any or all of the functions or powers of the Joint Authority under this Act or the regulations.

Note 1:       The expressions APS employee, SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901.

Note 2:       See also sections 34AA and 34AB of the Acts Interpretation Act 1901.

             (2)  If the Joint Authority delegates a function or power under this section, the delegation continues in force despite:

                     (a)  a vacancy in the office of Joint Authority; or

                     (b)  a change in the identity of the holder of the office of Joint Authority.

             (3)  Despite subsection (2), a delegation under this section may be revoked by the Joint Authority in accordance with subsection 33(3) of the Acts Interpretation Act 1901.

             (4)  A copy of each instrument making, varying or revoking a delegation under this section must be published in the Gazette.

68  Delegation by Joint Authority for an external Territory

             (1)  The Joint Authority for the offshore area of any of the following external Territories:

                     (a)  Norfolk Island;

                     (b)  the Territory of Christmas Island;

                     (c)  the Territory of Cocos (Keeling) Islands;

                     (d)  the Territory of Ashmore and Cartier Islands;

                     (e)  the Territory of Heard Island and McDonald Islands;

may, by written instrument, delegate to a person any or all of the functions or powers of the Joint Authority under this Act or the regulations.

Note:          See also sections 34AA and 34AB of the Acts Interpretation Act 1901.

             (2)  If the Joint Authority delegates a function or power under this section, the delegation continues in force despite:

                     (a)  a vacancy in the office of Joint Authority; or

                     (b)  a change in the identity of the holder of the office of Joint Authority.

             (3)  Despite subsection (2), a delegation under this section may be revoked by the Joint Authority in accordance with subsection 33(3) of the Acts Interpretation Act 1901.

             (4)  A copy of each instrument making, varying or revoking a delegation under this section must be published in the Gazette.

             (5)  A Joint Authority may delegate a function or power to an APS employee only if the APS employee is an SES employee or acting SES employee.

Note:          The expressions APS employee, SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901.

69  Greater Sunrise Offshore Petroleum Joint Authority—consultations

                   The Greater Sunrise Offshore Petroleum Joint Authority may consult with the Timor Sea Treaty Designated Authority before exercising any power, or performing any function, that is conferred on the Joint Authority under this Act or the regulations.


 

Division 2Designated Authorities

70  Designated Authorities

             (1)  For the purposes of this Act, there is a Designated Authority for each offshore area.

State

             (2)  The Designated Authority for the offshore area of a State is the responsible State Minister.

             (3)  The Designated Authority for the offshore area of a State is taken to be the Designated Authority for the State.

Principal Northern Territory offshore area

             (4)  The Designated Authority for the Principal Northern Territory offshore area is the responsible Northern Territory Minister.

             (5)  The Designated Authority for the Principal Northern Territory offshore area is taken to be the Designated Authority for the Northern Territory.

Eastern Greater Sunrise offshore area

             (6)  The responsible Commonwealth Minister is the Designated Authority for the Eastern Greater Sunrise offshore area.

             (7)  The Designated Authority for the Eastern Greater Sunrise offshore area is taken not to be the Designated Authority for the Northern Territory.

External Territories

             (8)  The responsible Commonwealth Minister is the Designated Authority for the offshore area of each of the following external Territories:

                     (a)  Norfolk Island;

                     (b)  the Territory of Christmas Island;

                     (c)  the Territory of Cocos (Keeling) Islands;

                     (d)  the Territory of Ashmore and Cartier Islands;

                     (e)  the Territory of Heard Island and McDonald Islands.

             (9)  The Designated Authority for the offshore area of an external Territory is taken to be the Designated Authority for the external Territory.

71  Functions and powers of Designated Authorities

State

             (1)  A Designated Authority for a State has, in relation to the offshore area for that State, the functions and powers that this Act confers on a Designated Authority.

Principal Northern Territory offshore area

             (2)  The Designated Authority for the Principal Northern Territory offshore area has, in relation to that offshore area, the functions and powers that this Act confers on a Designated Authority.

Eastern Greater Sunrise offshore area

             (3)  The Designated Authority for the Eastern Greater Sunrise offshore area has, in relation to that offshore area, the functions and powers that this Act confers on a Designated Authority.

External Territories

             (4)  The Designated Authority for any of the following external Territories has, in relation to the offshore area for that Territory, the functions and powers that this Act confers on a Designated Authority:

                     (a)  Norfolk Island;

                     (b)  the Territory of Christmas Island;

                     (c)  the Territory of Cocos (Keeling) Islands;

                     (d)  the Territory of Ashmore and Cartier Islands;

                     (e)  the Territory of Heard Island and McDonald Islands.

72  Delegation by Designated Authority

             (1)  A Designated Authority may, by written instrument, delegate to:

                     (a)  an APS employee who is an SES employee or acting SES employee; or

                     (b)  an employee of a State or the Northern Territory;

any or all of the powers or functions of the Designated Authority under this Act or the regulations.

Note 1:       The expressions APS employee, SES employee and acting SES employee are defined in section 17AA of the Acts Interpretation Act 1901.

Note 2:       See also sections 34AA and 34AB of the Acts Interpretation Act 1901.

             (2)  If a Designated Authority delegates a function or power under this section, the delegation continues in force despite:

                     (a)  a vacancy in the office of Designated Authority; or

                     (b)  a change in the identity of the holder of the office of Designated Authority.

             (3)  Despite subsection (2), a delegation under this section may be revoked by a Designated Authority in accordance with subsection 33(3) of the Acts Interpretation Act 1901.

             (4)  A copy of each instrument making, varying or revoking a delegation under this section must be published in the Gazette.

73  Eastern Greater Sunrise Designated Authority—consultations

                   The Designated Authority for the Eastern Greater Sunrise offshore area may consult with the Timor Sea Treaty Designated Authority before exercising any power, or performing any function, that is conferred on the Designated Authority for that offshore area under this Act or the regulations.

74  Judicial notice of signature of Designated Authority

             (1)  All courts must take judicial notice of:

                     (a)  the signature of a person who is, or has been:

                              (i)  the Designated Authority for an offshore area; or

                             (ii)  a delegate of the Designated Authority for an offshore area; and

                     (b)  the fact that the person is, or was at a particular time:

                              (i)  the Designated Authority for that offshore area; or

                             (ii)  a delegate of the Designated Authority for that offshore area.

             (2)  In this section:

court includes a person authorised to receive evidence:

                     (a)  by a law of the Commonwealth, a State or a Territory; or

                     (b)  by consent of parties.


 

Division 3Finance

75  Payments by the Commonwealth to Western Australia—Royalty Act payments

Payments to Western Australia

             (1)  If, during a particular month, the Commonwealth receives:

                     (a)  an amount of royalty payable under the Royalty Act by the registered holder of:

                              (i)  a petroleum exploration permit; or

                             (ii)  a petroleum retention lease; or

                            (iii)  a petroleum production licence;

                            in relation to petroleum recovered under the permit, lease or licence in the offshore area of Western Australia; or

                     (b)  an amount payable under Part 6.7 because of late payment of any such royalty;

then, before the end of the next month, the Commonwealth must pay to Western Australia an amount worked out using the formula:

where:

royalty rate means the percentage rate at which royalty is payable by the holder under the Royalty Act in relation to that petroleum (disregarding any determination under section 9 of the Royalty Act in relation to a well).

Reduction of payments to Western Australia—refunds of royalty

             (2)  If:

                     (a)  the Commonwealth is liable to pay an amount under subsection (1) because the Commonwealth received, during a particular month, an amount mentioned in that subsection; and

                     (b)  during that month, the Commonwealth paid a refund under paragraph 16(3)(b) of the Royalty Act to the registered holder of:

                              (i)  a petroleum exploration permit; or

                             (ii)  a petroleum retention lease; or

                            (iii)  a petroleum production licence;

                            in respect of an amount of royalty payable under the Royalty Act;

the total of the amounts payable by the Commonwealth as mentioned in paragraph (a) is to be reduced by an amount worked out using the formula:

where:

adjusted amount means the amount that would have been paid under subsection (1) in respect of the amount of royalty if it were assumed that the provisional royalty (within the meaning of section 16 of the Royalty Act) had been equal to the determined royalty (within the meaning of that section).

Payment through COAG Reform Fund

             (3)  An amount that is payable by the Commonwealth under this section must be credited to the COAG Reform Fund for the purposes of paying the amount to Western Australia.

             (4)  The Treasurer must ensure that, as soon as practicable after an amount is credited to the COAG Reform Fund under subsection (3), the COAG Reform Fund is debited for the purposes of paying the amount to Western Australia.

             (5)  For the purposes of:

                     (a)  the COAG Reform Fund Act 2008; and

                     (b)  the Financial Management and Accountability Act 1997;

the payment of an amount that the Commonwealth is liable to pay under this section is taken to be a payment by way of a grant of financial assistance.

76  Payments by the Commonwealth to the States and the Northern Territory

Scope

             (1)  This section applies if, during a particular month, the Commonwealth receives an amount (the received amount):

                     (a)  that is payable under:

                              (i)  Chapter 2, 4 or 7 of this Act (other than an amount paid for the grant of a cash‑bid petroleum exploration permit, a special petroleum exploration permit or a section 181 petroleum production licence); or

                             (ii)  section 4 of the Annual Fees Act; or

                            (iii)  section 5 or 6 of the Registration Fees Act;

                            in connection with a title or other document that relates to:

                            (iv)  a block; or

                             (v)  an infrastructure facility; or

                            (vi)  a pipeline;

                            in the offshore area of a State or the Northern Territory; or

                     (b)  that is an amount (other than a royalty) payable to the Designated Authority, on behalf of the Commonwealth, under, or under regulations made for the purposes of:

                              (i)  Chapter 2; or

                             (ii)  Chapter 4; or

                            (iii)  Chapter 7; or

                            (iv)  Schedule 5;

                            in relation to the offshore area of a State or the Northern Territory; or

                     (c)  that is payable to the Commonwealth under subsection 577(3) or 589(4) or (5) in relation to costs or expenses incurred by the Designated Authority of a State or the Northern Territory.

Note:          The offshore area of a State or Territory is defined by section 8.

Payments

             (2)  Before the end of the next month, the Commonwealth must pay to the State or to the Northern Territory, as the case may be, an amount equal to:

                     (a)  if the received amount includes a component that is attributable to goods and services tax—so much of the received amount as does not consist of that component; or

                     (b)  in any other case—the received amount.

Safety Authority

             (3)  This section does not apply to an amount payable to the Safety Authority on behalf of the Commonwealth.

Definition

             (4)  In this section:

title means a petroleum exploration permit, petroleum retention lease, petroleum production licence, infrastructure licence, pipeline licence, petroleum special prospecting authority or petroleum access authority.

77  Appropriation

                   The Consolidated Revenue Fund is appropriated for the purposes of section 76.


 

Part 1.4Application of State and Territory laws in offshore areas

  

78  Simplified outline

                   The following is a simplified outline of this Part:

•      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.

•      However, prescribed State or Northern Territory occupational health and safety laws do not apply, as laws of the Commonwealth, in relation to a facility located in the offshore area of that State or the Northern Territory.

79  Meaning of laws

                   For the purposes of this Part, laws include:

                     (a)  written laws; and

                     (b)  unwritten laws (for example, the common law); and

                     (c)  instruments having effect under laws.

80  Application of State and Territory laws in offshore areas

             (1)  The laws in force in a State or Territory (other than laws of the Commonwealth) apply, as provided by this section, as laws of the Commonwealth in the offshore area of that State or Territory as if that area were:

                     (a)  part of that State or Territory; and

                     (b)  part of the Commonwealth.

Note 1:       See also sections 81 to 89.

Note 2:       The offshore area of a State or Territory is defined by section 8.

             (2)  For the purposes of this Act, the provisions of laws applied under subsection (1) are to be known as the applied provisions.

             (3)  Subsection (1) has effect subject to:

                     (a)  this Act; and

                     (b)  the regulations.

             (4)  The laws referred to in subsection (1) apply in relation to acts, omissions, matters, circumstances and things touching, concerning, arising out of or connected with:

                     (a)  exploring the seabed or subsoil of the offshore area for petroleum, and exploiting the petroleum which occurs as a natural resource of that seabed or subsoil; or

                     (b)  the conveyance of petroleum (wherever recovered) across the offshore area; 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.

             (5)  The laws referred to in subsection (1) apply:

                     (a)  to and in relation to:

                              (i)  an act or omission that takes place in, on, above, below or in the vicinity of; and

                             (ii)  a matter, circumstance or thing that exists or arises in relation to or in connection with;

                            a vessel, aircraft, structure or installation, or equipment or other property, that is in the offshore area for any reason touching, concerning, arising out of or connected with:

                            (iii)  exploring the seabed or subsoil of the offshore area for petroleum, or exploiting the petroleum which occurs as a natural resource of that seabed or subsoil; or

                            (iv)  the conveyance of petroleum (wherever recovered) across the offshore area; or

                             (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

                     (b)  to and in relation to a person who:

                              (i)  is in the offshore area for a reason of the kind referred to in paragraph (a); or

                             (ii)  is in, on, above, below or in the vicinity of a vessel, aircraft, structure or installation, or equipment or other property, that is in the offshore area for a reason of the kind referred to in paragraph (a); and

                     (c)  to and in relation to a person in relation to:

                              (i)  the carrying on by the person of any operation; or

                             (ii)  the doing by the person of any work;

                            in the offshore area for a reason of the kind referred to in paragraph (a).

             (6)  Subsection (5) does not limit subsection (4).

             (7)  For the purposes of this section, a law is taken to be a law in force in a State or Territory even though that law applies to part only of that State or Territory.

81  Disapplication and modification of laws

             (1)  The regulations may provide that a law:

                     (a)  does not apply by reason of section 80 in an offshore area; or

                     (b)  applies by reason of section 80 in an offshore area with such modifications as are specified in the regulations.

             (2)  For the purposes of subsection (1), modifications includes additions, omissions and substitutions.

             (3)  Regulations made for the purposes of subsection (1) may make provision for, and in relation to:

                     (a)  investing a court of a State with federal jurisdiction; or

                     (b)  conferring jurisdiction on a court of a Territory.

82  Limit on application of laws

                   Section 80 does not give to the provisions of a law of a State or the Northern Territory an operation, as a law of the Commonwealth, that they would not have, as a law of the State or the Northern Territory, if it were assumed that the offshore area of the State or the Northern Territory were within the part of the scheduled area for the State or the Northern Territory that is on the landward side of the offshore area of the State or the Northern Territory.

83  Inconsistent law not applied

                   Section 80 does not apply a law in so far as the law would be inconsistent with a law of the Commonwealth (including this Act).

84  Criminal laws not applied

             (1)  Section 80 does not apply laws that are substantive criminal laws, or laws of criminal investigation, procedure and evidence, within the meaning of Schedule 1 to the Crimes at Sea Act 2000.

             (2)  This Act does not detract from the operation of the Crimes at Sea Act 2000.

85  Tax laws not applied

                   Section 80 does not operate so as to impose a tax.

86  Appropriation law not applied

                   Section 80 does not operate so as to appropriate any public money of a Territory.

87  Applied laws not to confer Commonwealth judicial power

                   Section 80 does not operate so as to confer the judicial power of the Commonwealth on a court, tribunal, authority or officer of a State or Territory.

88  Applied laws not to contravene constitutional restrictions on conferral of powers on courts

                   Section 80 does not operate so as to confer on a court of a State or Territory a power that cannot, under the Constitution, be conferred by the Parliament on such a court.

89  State or Northern Territory occupational health and safety laws do not apply in relation to facilities

State or Northern Territory OHS laws are not applied by section 80

             (1)  Section 80 of this Act, and section 6 of the Ashmore and Cartier Islands Acceptance Act 1933, do not apply a law in relation to:

                     (a)  a facility located in the offshore area of a State, the Northern Territory or the Territory of Ashmore and Cartier Islands; or

                     (b)  a person at such a facility; or

                     (c)  a person near such a facility, to the extent to which the person is affected by:

                              (i)  such a facility; or

                             (ii)  activities that take place at such a facility; or

                     (d)  activities that take place at such a facility;

if the law is:

                     (e)  a law of that State or the Northern Territory; and

                      (f)  prescribed in the regulations.

Note:          The offshore area of a State or Territory is defined by section 8.

             (2)  A law prescribed under subsection (1) must be:

                     (a)  a law relating to occupational health and safety; or

                     (b)  a law relating to occupational health and safety and to other matters.

State or Northern Territory OHS laws do not apply of their own force

             (3)  A law that is:

                     (a)  a law of a State or the Northern Territory; and

                     (b)  prescribed under subsection (1);

does not apply, by force of the law of that State or the Northern Territory, in relation to:

                     (c)  a facility located in the offshore area of that State or the Northern Territory; or

                     (d)  a person at such a facility; or

                     (e)  a person near such a facility, to the extent to which the person is affected by:

                              (i)  such a facility; or

                             (ii)  activities that take place at such a facility; or

                      (f)  activities that take place at such a facility.

Note:          The offshore area of a State or Territory is defined by section 8.

Substantive criminal provisions of State or Northern Territory OHS laws are not applied by Crimes at Sea Act 2000

             (4)  Despite subclauses 2(1) and (2) of Schedule 1 to the Crimes at Sea Act 2000, a law of a State or the Northern Territory that is:

                     (a)  referred to in those subclauses; and

                     (b)  prescribed in the regulations;

does not apply in relation to:

                     (c)  a facility located in the offshore area of that State, the Northern Territory or the Territory of Ashmore and Cartier Islands; or

                     (d)  a person at such a facility; or

                     (e)  a person near such a facility, to the extent to which the person is affected by:

                              (i)  such a facility; or

                             (ii)  activities that take place at such a facility; or

                      (f)  activities that take place at such a facility;

whether or not that application is:

                     (g)  by force of the law of that State or the Northern Territory; or

                     (h)  by force of section 6 of the Ashmore and Cartier Islands Acceptance Act 1933; or

                      (i)  by force of subclause 2(2) of that Schedule.

Note:          The offshore area of a State or Territory is defined by section 8.

             (5)  A law prescribed under subsection (4) must be:

                     (a)  a law relating to occupational health and safety; or

                     (b)  a law relating to occupational health and safety and to other matters.

Substantive criminal provisions of State or Northern Territory listed OHS laws are not applied by Crimes at Sea Act 2000

             (6)  Despite subclauses 2(1) and (2) of Schedule 1 to the Crimes at Sea Act 2000, provisions of a State or Territory PSLA, or of regulations under a State or Territory PSLA, that substantially correspond to the listed OHS laws do not apply in relation to:

                     (a)  a facility located in the offshore area of that State, the Northern Territory or the Territory of Ashmore and Cartier Islands; or

                     (b)  a person at such a facility; or

                     (c)  a person near such a facility, to the extent to which the person is affected by:

                              (i)  such a facility; or

                             (ii)  activities that take place at such a facility; or

                     (d)  activities that take place at such a facility;

whether or not that application is:

                     (e)  by force of the law of that State or the Northern Territory; or

                      (f)  by force of section 6 of the Ashmore and Cartier Islands Acceptance Act 1933; or

                     (g)  by force of subclause 2(2) of that Schedule.

Note:          The offshore area of a State or Territory is defined by section 8.

Definitions

             (7)  In this section:

facility has the same meaning as in Schedule 3.

law includes a part of a law.

State PSLA has the same meaning as in Part 6.9.

Territory PSLA has the same meaning as in Part 6.9.

Note:          See also section 640, which deals with the application of Commonwealth maritime legislation in the offshore area of a State or Territory.

90  No limits on ordinary operation of law

                   This Part does not limit the operation that a law has apart from this Part.

91  Jurisdiction of State courts

             (1)  The courts of a State are invested with federal jurisdiction in all matters arising under the laws applied under section 80 in the offshore area of the State.

Note:          The offshore area of a State is defined by section 8.

             (2)  Jurisdiction is invested under subsection (1) within the limits (other than the limits of locality) of the jurisdiction of the court (whether those limits are limits as to subject matter or otherwise).

92  Jurisdiction of Territory courts

             (1)  Jurisdiction is conferred on the courts that have jurisdiction in a Territory in all matters arising out of the laws applied under section 80 in the offshore area of the Territory.

Note:          The offshore area of a Territory is defined by section 8.

             (2)  Jurisdiction is conferred under subsection (1) within the limits (other than the limits of locality) of the jurisdiction of the court (whether those limits are limits as to subject matter or otherwise).

93  Validation of certain acts

                   If:

                     (a)  a person or a court does an act in the purported exercise of a power, or the purported performance of a function, under a law of a State or Territory; and

                     (b)  the act could have been done by the person or court in the exercise of a power, or the performance of a function, under the applied provisions;

the act is taken to have been done in the exercise of the power, or performance of the function, under the applied provisions.

Note:          Applied provisions is defined by section 7.

94  Certain provisions not affected by this Part

                   The following provisions have effect despite anything in this Part:

                     (a)  Division 2 of Part 1.2;

                     (b)  Chapters 2 to 9;

                     (c)  Schedule 5.


 

Chapter 2Regulation of activities relating to petroleum

Part 2.1Introduction

  

95  Simplified outline

                   The following is a simplified outline of this Chapter:

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

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

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

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

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

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

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

               (g)     a petroleum access authority (see Part 2.8).

•      A petroleum exploration permit authorises the permittee to explore for petroleum in the permit area.

•      If a petroleum pool is identified in a petroleum exploration permit area, the Designated Authority may declare a location over the blocks to which the petroleum pool extends.

•      After the declaration of a location, the permittee may apply for a petroleum retention lease or a petroleum production licence.

•      A petroleum retention lease is granted if the recovery of petroleum is not currently commercially viable, but is likely to become commercially viable within 15 years. The lessee may apply for a petroleum production licence.

•      A petroleum production licence authorises the licensee to carry out petroleum recovery operations in the licence area.

•      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.

•      A petroleum special prospecting authority authorises the holder to carry on petroleum exploration operations in the authority area (but not to make a well).

•      A petroleum access authority authorises the holder to carry on certain petroleum exploration operations, and certain operations relating to the recovery of petroleum, in the authority area (but not to make a well).

•      Part 2.9 provides for the grant of petroleum scientific investigation consents. A petroleum scientific investigation consent authorises the holder to carry on petroleum exploration operations in the course of a scientific investigation.


 

Part 2.2Petroleum exploration permits

Division 1General provisions

96  Simplified outline

                   The following is a simplified outline of this Part:

•      It is an offence to explore for petroleum in an offshore area except:

               (a)     under a petroleum exploration permit; or

               (b)     as otherwise authorised or required by or under this Act.

•      This Part provides for the grant of petroleum exploration permits over blocks in an offshore area.

•      A petroleum exploration permit authorises the permittee to explore for petroleum in the permit area.

•      There are 3 types of petroleum exploration permits:

               (a)     a petroleum exploration permit granted on the basis of work program bidding (a work‑bid petroleum exploration permit);

               (b)     a petroleum exploration permit granted on the basis of cash bidding (a cash‑bid petroleum exploration permit);

               (c)     a petroleum exploration permit granted over a surrendered block or certain other blocks (a special petroleum exploration permit).

•      If a petroleum pool is identified in a petroleum exploration permit area, the Designated Authority may declare a location over the blocks to which the petroleum pool extends.

97  Prohibition of unauthorised exploration for petroleum in offshore area

             (1)  A person commits an offence if:

                     (a)  the person explores for petroleum; 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 petroleum exploration 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.

98  Rights conferred by petroleum exploration permit

             (1)  A petroleum exploration permit authorises the permittee, in accordance with the conditions (if any) to which the permit is subject:

                     (a)  to explore for petroleum in the permit area; and

                     (b)  to recover petroleum on an appraisal basis in the permit area; and

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

             (2)  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.

             (3)  The regulations may provide that a petroleum 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.

             (4)  The rights conferred on the permittee by or under subsection (1) or (3) are subject to this Act and the regulations.

99  Conditions of petroleum exploration permits

             (1)  The Joint Authority may grant a petroleum exploration permit subject to whatever conditions the Joint Authority thinks appropriate.

Note:          A grant of a permit may be a grant by way of renewal—see section 11.

             (2)  The conditions (if any) must be specified in the permit.

Permit to which Royalty Act applies

             (3)  A petroleum exploration permit to which the Royalty Act applies is subject to a condition that the permittee will comply with the provisions of the Royalty Act.

Note:          The Royalty Act applies to a small number of North West Shelf titles.

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

Work‑bid petroleum exploration permits and special petroleum exploration permits

             (5)  Any or all of the following conditions may be specified in a work‑bid petroleum exploration permit or a special petroleum exploration 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.

             (6)  Subsection (5) does not limit subsection (1) or (10).

Cash‑bid petroleum exploration permits

             (7)  Despite subsection (1), a cash‑bid petroleum exploration 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.

Note:          A grant of a permit may be a grant by way of renewal—see section 11.

Declared petroleum exploration permits—approval of key petroleum operations

             (8)  A declared petroleum 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 100.

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

           (10)  If, under section 100, the responsible Commonwealth Minister approves the carrying on of one or more key petroleum operations under a declared petroleum 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 petroleum 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 6.2; or

                     (c)  Part 6.4.

           (14)  If:

                     (a)  a declared petroleum 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 petroleum 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 264.

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

             (1)  The registered holder of a declared petroleum 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 98 does not imply that a petroleum 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 438.

101  Declared petroleum exploration permits

             (1)  If:

                     (a)  a post‑commencement petroleum 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 petroleum exploration permittee, determine that the petroleum exploration permit is a declared petroleum 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 petroleum 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 petroleum exploration permittee, revoke the determination.

102  Duration of petroleum exploration permit

             (1)  The duration of a petroleum exploration permit is worked out using the table:

 

Duration of petroleum exploration permits

Item

This kind of permit...

remains in force...

1

an original petroleum exploration 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 petroleum exploration permit granted by way of renewal

for the period of 5 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 petroleum exploration permit if the permittee applies for a petroleum retention lease or petroleum production licence, see section 103.

Note 2:       For a special rule about the extension of the duration of petroleum exploration permits pending decisions on renewal applications, see subsection 119(5).

Note 3:       For a special rule about the extension of the duration of cash‑bid petroleum exploration permits, see section 114.

Note 4:       For special rules about the extension of the duration of a petroleum exploration permit following a suspension or exemption decision, see sections 265 and 267.

Note 5:       For the revocation of a petroleum exploration permit, see section 188 and clause 8 of Schedule 4.

Note 6:       For special rules about when a petroleum exploration permit ceases to be in force following the grant of a petroleum retention lease or petroleum production licence, see sections 145 and 176.

Note 7:       For the surrender of a petroleum exploration permit, see Part 2.12.

Note 8:       For the cancellation of a petroleum exploration permit, see Part 2.13.

103  Extension of petroleum exploration permit if permittee applies for petroleum retention lease or petroleum production licence

             (1)  If:

                     (a)  a petroleum exploration permit over a block or blocks cannot be renewed or further renewed; and

                     (b)  before the time when the permit would, apart from this subsection, expire, the permittee applies to the Designated Authority for the grant by the Joint Authority of a petroleum retention lease or petroleum production licence over the block or one or more of the blocks; and

                     (c)  the block or blocks covered by the application are included in a location;

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 Joint Authority gives the permittee an offer document relating to a petroleum retention lease or petroleum production 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 petroleum retention lease and the Joint Authority decides not to grant the lease to the permittee

the end of the period of one year after the day on which the notice of refusal was given to the permittee.

3

the application is for a petroleum production licence and the Joint Authority decides not to grant the licence to the permittee

notice of the decision is given to the permittee.

             (2)  Subsection (1) has effect subject to this Chapter but despite section 102.

Note:          See the notes at the end of section 102.


 

Division 2Obtaining a work‑bid petroleum exploration permit

104  Application for work‑bid petroleum exploration permit—advertising of blocks

Invitation to apply for a petroleum exploration permit

             (1)  The Joint Authority may, by notice published in the Gazette:

                     (a)  invite applications for the grant by the Joint Authority of a petroleum exploration 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 Joint Authority has published a notice under subsection 110(1) inviting applications for the grant of a petroleum exploration 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 110(1) notice.

Note:          Subsection 110(1) deals with cash‑bid petroleum exploration permits.

Application for petroleum exploration 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 2.10 contains additional provisions about application procedures.

Note 2:       Section 256 requires the application to be accompanied by an application fee.

Note 3:       Section 258 enables the Designated Authority to require the applicant to give further information.

Maximum number of blocks

             (4)  The number of blocks specified in an application under this section must not be more than 400.

Minimum number of blocks

             (5)  If 16 or more blocks are available, the number of blocks specified in an application under this section must not be less than 16.

             (6)  If less than 16 blocks are available, the number of blocks specified in an application under this section must be the number available.

             (7)  Subsections (5) and (6) do not apply to applications if the Joint Authority, for reasons that the Joint Authority thinks sufficient, includes in the subsection (1) notice a direction that subsections (5) and (6) do not apply to those applications.

Attributes of blocks

             (8)  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.

             (9)  Subsection (8) does not apply to applications if the Joint Authority, for reasons that the Joint Authority thinks sufficient, includes in the subsection (1) notice a direction that subsection (8) does not apply to those applications.

105  Grant of work‑bid petroleum exploration permit—offer document

Scope

             (1)  This section applies if an application for the grant of a petroleum exploration permit has been made under section 104.

Offer document

             (2)  The Joint Authority may:

                     (a)  give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant a petroleum exploration permit over the block or blocks specified in the offer document; or

                     (b)  by written notice given to the applicant, refuse to grant a petroleum exploration permit to the applicant.

Note 1:       Section 259 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 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 258(3).

106  Ranking of multiple applicants for work‑bid petroleum exploration permit

Scope

             (1)  This section applies if:

                     (a)  the Joint Authority publishes a notice under subsection 104(1) inviting applications for the grant of a petroleum exploration permit; and

                     (b)  at the end of the period specified in the notice, 2 or more applications have been made under section 104 for the grant of a petroleum exploration permit over the same block or blocks.

Most deserving applicant may be given offer document

             (2)  The Joint Authority may give an offer document under section 105 to whichever applicant, in the Joint Authority’s opinion, is most deserving of the grant of the petroleum exploration permit.

             (3)  In determining which of the applicants is most deserving of the grant of the petroleum exploration permit, the Joint Authority must have regard to criteria made publicly available by the Joint Authority.

Ranking of applicants

             (4)  For the purposes of this section, the Joint Authority may rank the applicants in the order in which, in the Joint Authority’s opinion, they are deserving of the grant of the petroleum exploration permit, with the most deserving applicant being ranked highest.

             (5)  The Joint Authority may exclude from the ranking any applicant who, in the Joint Authority’s opinion, is not deserving of the grant of the petroleum exploration permit.

Applicants who are equally deserving of the grant of the petroleum exploration permit

             (6)  If the Joint Authority:

                     (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 petroleum exploration permit;

the Joint Authority may, by written notice given to each of those applicants, invite them to give the Joint Authority details (the work/expenditure details) of their proposals for additional work and expenditure in relation to the block or blocks concerned.

             (7)  A notice under subsection (6) must:

                     (a)  specify the kinds of work/expenditure details that the Joint Authority considers to be relevant in determining which of the applicants is most deserving of the grant of the petroleum exploration permit; and

                     (b)  specify the period within which the work/expenditure details must be given to the Joint Authority.

             (8)  If an applicant gives work/expenditure details to the Joint Authority, and those details are:

                     (a)  of a kind specified in the notice; and

                     (b)  given within the period specified in the notice;

the Joint Authority must have regard to the details in determining which of the applicants is most deserving of the grant of the petroleum exploration permit.

Criteria

             (9)  An instrument setting out criteria under subsection (3) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Note:          See also section 109, which deals with the effect of the withdrawal or lapse of an application.

107  Grant of work‑bid petroleum exploration permit

                   If:

                     (a)  an applicant has been given an offer document under section 105; and

                     (b)  the applicant has made a request under section 260 in relation to the offer document within the period applicable under that section;

the Joint Authority must grant the applicant a petroleum exploration permit over the block or blocks specified in the offer document.

Note:          If the applicant does not make a request under section 260 within the period applicable under that section, the application lapses at the end of that period—see subsection 260(4).

108  Withdrawal of application

Scope

             (1)  This section applies if the Joint Authority publishes a notice under subsection 104(1) inviting applications for the grant of a petroleum exploration permit.

Withdrawal by single applicant

             (2)  If a person has made an application, the person may, by written notice given to the Joint Authority, withdraw the application at any time before a petroleum exploration 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 Joint Authority, withdraw the application at any time before a petroleum exploration 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 104 for the grant of a petroleum exploration permit; and

                     (b)  all of the joint applicants, by written notice given to the Joint Authority, tell the Joint Authority 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 Joint Authority had given the joint applicants an offer document in relation to the application—the Joint Authority is taken not to have given the offer document to the joint applicants.

109  Effect of withdrawal or lapse of application

Scope

             (1)  This section applies if:

                     (a)  2 or more applications have been made under section 104 for the grant of a petroleum exploration 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 Joint Authority gave an offer document in relation to a withdrawn or lapsed application, the Joint Authority is taken not to have given an offer document in relation to the withdrawn or lapsed application.

Request to grant petroleum exploration permit

             (4)  If the applicant, or one of the applicants, whose application had been withdrawn had requested the Joint Authority under section 260 to grant a petroleum exploration permit to the applicant concerned, the request is taken not to have been made.

Refusal to grant petroleum exploration permit

             (5)  If the following conditions are satisfied in relation to a remaining applicant:

                     (a)  the Joint Authority had refused to grant a petroleum exploration permit to the remaining applicant;

                     (b)  the Joint Authority did not exclude the remaining applicant from the ranking under subsection 106(5);

the refusal is taken not to have occurred.


 

Division 3Obtaining a cash‑bid petroleum exploration permit

110  Application for cash‑bid petroleum exploration permit

Invitation to apply for a petroleum exploration permit

             (1)  The Joint Authority may, by notice published in the Gazette:

                     (a)  invite applications by way of cash bidding for the grant by the Joint Authority of a petroleum exploration permit over the block or blocks specified in the notice; and

                     (b)  specify a period within which applications may be made.

             (2)  If the Joint Authority has published a notice under subsection 104(1) inviting applications for the grant of a petroleum exploration 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 104(1) notice.

Note:          Subsection 104(1) deals with work‑bid petroleum exploration permits.

             (3)  A notice under subsection (1) must:

                     (a)  state whether the permit is able to be renewed; and

                     (b)  contain a summary of the conditions to which the permit will be subject; and

                     (c)  specify the matters that the Joint Authority 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 petroleum exploration permit

             (5)  If a notice under subsection (1) specifies more than one block, an application under this section must be for a petroleum exploration 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 2.10 contains additional provisions about application procedures.

Note 2:       Section 256 requires the application to be accompanied by an application fee.

Note 3:       Section 258 enables the Designated Authority to require the applicant to give further information.

111  Grant of cash‑bid petroleum exploration permit—only one application

Scope

             (1)  This section applies if:

                     (a)  the Joint Authority publishes a notice under subsection 110(1) inviting applications for the grant of a petroleum exploration 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 110 in relation to the block or blocks.

Offer document

             (2)  The Joint Authority may:

                     (a)  give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant a petroleum exploration permit over that block or those blocks; or

                     (b)  by written notice given to the applicant, reject the application.

Note 1:       Section 259 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 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 258(3).

112  Grant of cash‑bid petroleum exploration permit—2 or more applications

Scope

             (1)  This section applies if:

                     (a)  the Joint Authority publishes a notice under subsection 110(1) inviting applications for the grant of a petroleum exploration 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 110 in relation to the block or blocks.

Rejection of applications

             (2)  The Joint Authority may reject any or all of the applications.

Unrejected applications

             (3)  If the Joint Authority does not reject all of the applications, the table has effect:

 

Unrejected applications

Item

If...

the Joint Authority 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 110(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 110(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 110(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 Joint Authority is prepared to grant the applicant a petroleum exploration permit over the block or blocks.

Note 1:       Section 259 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 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 258(3).

             (5)  If:

                     (a)  an applicant is given an offer document under this section; and

                     (b)  the application lapses as provided by section 260 or 261; 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 Joint Authority does not give an offer document to an applicant, the Joint Authority must, by written notice given to the applicant, inform the applicant that the application was unsuccessful.

113  Grant of cash‑bid petroleum exploration permit

             (1)  If:

                     (a)  an applicant has been given an offer document under section 111 or 112; and

                     (b)  the applicant has made a request under section 260 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 261;

the Joint Authority must grant the applicant a petroleum exploration permit over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 260 within the period applicable under that section, the application lapses at the end of that period—see subsection 260(4).

Note 2:       If the applicant has not paid the specified amount within the period applicable under section 261, the application lapses at the end of that period—see subsection 261(1).

             (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 petroleum exploration permit.

114  Extension of cash‑bid petroleum exploration permit

Scope

             (1)  This section applies if:

                     (a)  a cash‑bid petroleum exploration permit expires; and

                     (b)  the permit cannot be renewed.

Note:          See section 120 (non‑renewable permits) and section 121 (limit on renewal of permits).

Extension of permit—requirement to nominate blocks as location

             (2)  If, before the expiry of the permit:

                     (a)  the Designated Authority had required the permittee to nominate, under section 130, a block or blocks in relation to which the permit was in force; and

                     (b)  the permittee had not complied with the requirement;

the permit continues in force over that block or those blocks until the end of the period the permittee has to comply with the requirement.

Extension of permit—nomination of blocks as location, declaration of location

             (3)  If, before the expiry of the permit:

                     (a)  a block or blocks in relation to which the permit was in force had been nominated under section 129; or

                     (b)  both:

                              (i)  a declaration under section 131 had been made in relation to a block or blocks in relation to which the permit was in force; and

                             (ii)  the permittee had not requested that the declaration be revoked;

the permit continues in force over that block or those blocks until whichever of the following events happens first:

                     (c)  a declaration under section 131 in relation to the block or blocks is revoked;

                     (d)  a petroleum retention lease or a petroleum production licence is granted in relation to the block or blocks;

                     (e)  the application period referred to in section 141 in relation to the block or blocks ends without the permittee making an application under that section for a petroleum retention lease in relation to the block or blocks;

                      (f)  if the Royalty Act does not apply to the permit—the application period referred to in section 169 in relation to the block or blocks ends without the permittee making an application under section 168 for a petroleum production licence over the block or blocks;

                     (g)  if the Royalty Act applies to the permit—the application period referred to in clause 3 of Schedule 4 in relation to the block or blocks ends without the permittee making an application under clause 2 of Schedule 4 for a petroleum production licence over the block or blocks.

             (4)  This section has effect subject to this Chapter but despite section 102.

Note:          See the notes at the end of section 102.


 

Division 4Obtaining a special petroleum exploration permit over a surrendered block or certain other blocks

115  Application for a special petroleum exploration permit over a surrendered block or certain other blocks

Invitation to apply for a petroleum exploration permit

             (1)  If:

                     (a)  a petroleum retention lease is surrendered, cancelled or revoked to the extent to which it relates to a block or blocks; or

                     (b)  a petroleum production licence is surrendered or cancelled to the extent to which it relates to a block or blocks; or

                     (c)  a petroleum production licence that relates to a block or blocks is terminated; or

                     (d)  both:

                              (i)  a petroleum exploration permit is surrendered, cancelled or revoked to the extent to which it relates to a block or blocks; and

                             (ii)  at the time of the surrender, cancellation or revocation, the block or blocks were, or were included in, a location;

the Joint Authority may, at any later time, by notice published in the Gazette:

                     (e)  invite applications for the grant by the Joint Authority of a petroleum exploration permit over that block or such of those blocks as are specified in the notice; and

                      (f)  specify a period within which applications may be made.

             (2)  A notice under subsection (1) must state that an applicant must specify an amount that the applicant would be prepared to pay for the grant of the permit.

Application for petroleum exploration permit

             (3)  If a notice under subsection (1) specifies more than one block, an application under this section must be for a petroleum exploration permit over all of the specified blocks.

             (4)  An application under this section must:

                     (a)  be accompanied by details of:

                              (i)  the applicant’s proposals for work and expenditure in relation to the block or blocks specified in the application; and

                             (ii)  the technical qualifications of the applicant and of the applicant’s employees; and

                            (iii)  the technical advice available to the applicant; and

                            (iv)  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 2.10 contains additional provisions about application procedures.

Note 2:       Section 256 requires the application to be accompanied by an application fee.

Note 3:       Section 258 enables the Designated Authority to require the applicant to give further information.

             (5)  An application under this section must be accompanied by a deposit of 10% of the amount that the applicant has specified under paragraph (4)(b).

Refund of deposit

             (6)  If the permit is not granted, the deposit must be refunded to the applicant.

             (7)  Subsection (6) does not apply if:

                     (a)  the applicant has been given an offer document under section 116 or 117 in relation to the application; and

                     (b)  the applicant does not, under section 260, request the grant of the permit.

116  Grant of special petroleum exploration permit—only one application

Scope

             (1)  This section applies if:

                     (a)  the Joint Authority publishes a notice under subsection 115(1) inviting applications for the grant of a petroleum exploration 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 115 in relation to the block or blocks.

Offer document

             (2)  The Joint Authority may:

                     (a)  give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to grant the applicant a petroleum exploration permit over that block or those blocks; or

                     (b)  by written notice given to the applicant, reject the application.

Note 1:       Section 259 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 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 258(3).

117  Grant of special petroleum exploration permit—2 or more applications

Scope

             (1)  This section applies if:

                     (a)  the Joint Authority publishes a notice under subsection 115(1) inviting applications for the grant of a petroleum exploration 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 115 in relation to the block or blocks.

Rejection of applications

             (2)  The Joint Authority may reject any or all of the applications.

Unrejected applications

             (3)  If the Joint Authority does not reject all of the applications, the table has effect:

 

Unrejected applications

Item

If...

the Joint Authority 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 115(4)(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 115(4)(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 115(4)(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 Joint Authority is prepared to grant the applicant a petroleum exploration permit over the block or blocks.

Note 1:       Section 259 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 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 258(3).

             (5)  If:

                     (a)  an applicant is given an offer document under this section; and

                     (b)  the application lapses as provided by section 260 or 261; 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 Joint Authority does not give an offer document to an applicant, the Joint Authority must, by written notice given to the applicant, inform the applicant that the application was unsuccessful.

118  Grant of special petroleum exploration permit

             (1)  If:

                     (a)  an applicant has been given an offer document under section 116 or 117; and

                     (b)  the applicant has made a request under section 260 in relation to the offer document within the period applicable under that section; and

                     (c)  the applicant has paid the specified balance within the period applicable under section 261;

the Joint Authority must grant the applicant a petroleum exploration permit over the block or blocks specified in the offer document.

Note 1:       If the applicant does not make a request under section 260 within the period applicable under that section, the application lapses at the end of that period—see subsection 260(4).

Note 2:       If the applicant has not paid the specified balance within the period applicable under section 261, the application lapses at the end of that period—see subsection 261(2).

             (2)  For the purposes of this section, the specified balance is the balance specified in the offer document as the balance of the amount that the applicant must pay for the grant of the petroleum exploration permit.


 

Division 5Renewal of petroleum exploration permits

119  Application for renewal of petroleum exploration permit

             (1)  A petroleum exploration permittee may apply to the Designated Authority for the renewal by the Joint Authority of the permit in relation to such of the blocks the subject of the permit as are specified in the application.

Note 1:       Part 2.10 contains additional provisions about application procedures.

Note 2:       Section 256 requires the application to be accompanied by an application fee.

             (2)  Subsection (1) has effect subject to the following provisions:

                     (a)  section 120 (non‑renewable cash‑bid petroleum exploration permits);

                     (b)  section 121 (limit on renewal of cash‑bid petroleum exploration permits);

                     (c)  section 122 (limits on renewal of work‑bid petroleum exploration permits and special petroleum exploration permits);

                     (d)  section 123 (standard halving rules);

                     (e)  section 124 (modified halving rules).

             (3)  An application to renew a petroleum exploration permit must be made at least 90 days before the expiry date of the permit.

             (4)  Despite subsection (3), the Designated Authority may accept an application to renew a petroleum exploration permit if the application is made:

                     (a)  later than 90 days before the expiry date of the permit; and

                     (b)  before the expiry date of the permit.

Extension of duration of petroleum exploration permit pending decision on application

             (5)  If:

                     (a)  a petroleum exploration permittee makes an application to renew the permit; and

                     (b)  the permit would, apart from this subsection, expire:

                              (i)  before the Joint Authority grants, or refuses to grant, the renewal of the permit; or

                             (ii)  before the application lapses as provided by section 260;

the permit continues in force:

                     (c)  until the Joint Authority grants, or refuses to grant, the renewal of the permit; or

                     (d)  until the application so lapses;

whichever happens first.

             (6)  Subsection (5) has effect subject to this Chapter but despite section 102.

Note:          See the notes at the end of section 102.

120  Non‑renewable cash‑bid petroleum exploration permits

                   A petroleum exploration permittee must not apply to renew a cash‑bid petroleum exploration permit if the notice under subsection 110(1) relating to the grant of the permit stated that the permit was not able to be renewed.

121  Limit on renewal of cash‑bid petroleum exploration permits

                   A petroleum exploration permittee must not apply to renew a cash‑bid petroleum exploration permit if the Joint Authority has previously granted a renewal of the permit.

122  Limits on renewal of work‑bid petroleum exploration permits and special petroleum exploration permits

Scope

             (1)  This section applies to an application for renewal of a work‑bid petroleum exploration permit or a special petroleum exploration permit.

Limits

             (2)  The table has effect:

 

Limits on renewal

Item

In this case...

Do the standard halving rules in section 123 apply?

Do the modified halving rules in section 124 apply?

Can the permit be renewed more than twice?

1

an application for renewal of a work‑bid petroleum exploration permit, where the original petroleum exploration permit was granted:

(a) on or after 1 January 2003; and

(b) as a result of an application made in response to an invitation in a notice that was published under subsection 104(1) on or after 1 January 2003

Yes

No

No

2

an application for renewal of a special petroleum exploration permit, where the original petroleum exploration permit was granted on or after 1 January 2003

Yes

No

No

3

the first application after 6 March 2000 to renew a petroleum exploration permit, where the original petroleum exploration permit was granted before 7 March 2000

No

Yes

Yes, so long as the modified halving rules do not prevent the renewal

4

any other application for renewal of a petroleum exploration permit

Yes

No

Yes, so long as the standard halving rules do not prevent the renewal

Note:          Under clause 23 of Schedule 6 to this Act, the reference in item 1 of the table to subsection 104(1) of this Act includes a reference to subsection 20(1) of the Petroleum (Submerged Lands) Act 1967.

123  Standard halving rules

             (1)  This section sets out the standard halving rules.

Scope

             (2)  This section applies to:

                     (a)  an application for renewal of a cash‑bid petroleum exploration permit that is capable of being renewed; and

                     (b)  an application for renewal that is covered by item 1, 2 or 4 of the table in subsection 122(2).

Basic rule

             (3)  The maximum number of blocks in relation to which an application for a renewal of a permit may be made is worked out using the table:

 

Maximum number of blocks

Item

In this case...

the maximum number of blocks is...

1

the number of non‑location blocks in relation to which the permit is in force is a number (the divisible number) that is divisible by 2 without remainder

one‑half of the divisible number.

2

the number of non‑location blocks in relation to which the permit is in force is a number that is one less or one more than a number (the divisible number) that is divisible by 4 without remainder

one‑half of the divisible number.

             (4)  Subsection (3) has effect subject to subsections (5), (6), (7), (8) and (9).

Additional rules

             (5)  An application to renew a permit may include, in addition to the blocks worked out under subsection (3):

                     (a)  a block that is, or is included in, a location and in relation to which the permit is in force; or

                     (b)  2 or more blocks covered by paragraph (a).

             (6)  An application cannot be made to renew a permit in relation to only one block.

             (7)  If a permit is in force in relation to 5 or 6 blocks, an application may be made to renew the permit in relation to 4 of those blocks.

             (8)  If a permit is in force in relation to 2, 3 or 4 blocks, an application may be made to renew the permit in relation to all those blocks.

             (9)  If a permit is renewed as a result of an application referred to in subsection (8), an application may not be made for the further renewal of the permit.

Definition

           (10)  In this section:

non‑location block means a block that is neither a location nor included in a location.

124  Modified halving rules

             (1)  This section sets out the modified halving rules.

Scope

             (2)  This section applies to an application for renewal that is covered by item 3 of the table in subsection 122(2).

Modification of standard halving rules

             (3)  The modified halving rules are the rules set out in subsections 123(3), (4), (5), (7), (8), (9) and (10), modified as follows:

                     (a)  if the maximum number of blocks in relation to which an application for renewal of a permit may be made in accordance with those rules is less than 16, the Joint Authority may, by written notice given to the permittee:

                              (i)  tell the permittee that the number of blocks in relation to which the application may be made is such number, not more than 16, as is specified in the notice; and

                             (ii)  give such directions as the Joint Authority thinks fit about the blocks in relation to which the application may be made;

                     (b)  if a permit is in force in relation to only one block, an application may be made for renewal of the permit in relation to that block.

125  Renewal of petroleum exploration permit—offer document

Scope

             (1)  This section applies if an application to renew a petroleum exploration permit has been made under section 119.

Offer document—compliance with conditions etc.

             (2)  If each of the following has been complied with:

                     (a)  the conditions to which the petroleum exploration permit is, or has from time to time been, subject;

                     (b)  the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1;

                     (c)  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 renew the permit.

Note:          Section 259 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 petroleum exploration permit is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  the Joint Authority is satisfied that there are sufficient grounds to warrant the granting of the renewal of the permit;

the Joint Authority may give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to renew the permit.

Note:          Section 259 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

126  Refusal to renew petroleum exploration permit

Scope

             (1)  This section applies if an application to renew a petroleum exploration permit has been made under section 119.

Refusal on grounds of non‑compliance with conditions

             (2)  If:

                     (a)  any of:

                              (i)  the conditions to which the petroleum exploration permit is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  the Joint Authority is not satisfied that there are sufficient grounds to warrant the granting of the renewal of the permit;

the Joint Authority must, by written notice given to the applicant, refuse to renew the permit.

Note:          Consultation procedures apply—see section 262.

127  Renewal of petroleum exploration permit

                   If:

                     (a)  an applicant has been given an offer document under section 125; and

                     (b)  the applicant has made a request under section 260 in relation to the offer document within the period applicable under that section;

the Joint Authority must renew the petroleum exploration permit.

Note:          If the applicant does not make a request under section 260 within the period applicable under that section, the application lapses at the end of that period—see subsection 260(4).


 

Division 6Locations

128  Simplified outline

                   The following is a simplified outline of this Division:

•      If a petroleum pool is identified in a petroleum exploration permit area, the Designated Authority may declare a location over the blocks to which the petroleum pool extends.

•      Generally, the blocks must be nominated for declaration by the permittee.

•      The Designated Authority may require the permittee to nominate the blocks.

•      The declaration may be revoked or varied in certain circumstances.

129  Nomination of blocks as a location

Single petroleum pool

             (1)  If:

                     (a)  a petroleum pool is identified in a petroleum exploration permit area; and

                     (b)  the permittee or another person has, whether in or outside the permit area, recovered petroleum from the pool;

the permittee may nominate, for declaration as a location:

                     (c)  if the pool extends to only one block in the permit area—that block; or

                     (d)  if the pool extends to 2 or more blocks in the permit area—those blocks.

2 or more petroleum pools

             (2)  If:

                     (a)  2 or more petroleum pools are identified in a petroleum exploration permit area; and

                     (b)  the permittee or another person has, whether in or outside the permit area, recovered petroleum from each of those pools;

the permittee may, instead of making a nomination under subsection (1) in relation to each pool, nominate for declaration as a single location:

                     (c)  all of the blocks to which the pools extend; or

                     (d)  all of the blocks to which any 2 or more of the pools extend.

             (3)  To be effective, a nomination under subsection (2) that relates to 2 or more pools must be such that, in the case of each of the pools, at least one of the blocks to which the pool extends immediately adjoins a block to which the other, or another, of those pools extends.

             (4)  For the purposes of subsection (3), 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.

Form of nomination

             (5)  A nomination under this section must be:

                     (a)  in writing; and

                     (b)  given to the Designated Authority.

130  Requirement to nominate blocks as a location

Requirement to nominate

             (1)  If:

                     (a)  the Designated Authority is of the opinion that a petroleum exploration permittee is entitled to nominate a block or blocks under subsection 129(1) or (2); and

                     (b)  the permittee has not done so;

the Designated Authority may, by written notice given to the permittee, require the permittee to nominate the block or blocks within:

                     (c)  90 days after the day on which the notice was given; or

                     (d)  such longer period, not more than 180 days after the day on which the notice was given, as the Designated Authority allows.

             (2)  The Designated Authority may allow a longer period under paragraph (1)(d) only on written application made by the permittee within the period of 90 days mentioned in paragraph (1)(c).

Consequences of non‑compliance

             (3)  If the permittee does not comply with the requirement, the Designated Authority may, by written notice given to the permittee, nominate the block or blocks for declaration as a location.

131  Declaration of location

Nomination by permittee

             (1)  If:

                     (a)  a petroleum exploration permittee has made a nomination under section 129; and

                     (b)  the Designated Authority is of the opinion that the permittee is entitled under that section to nominate the block or blocks specified in the nomination;

the Designated Authority must, by writing, declare the nominated block or blocks to be a location.

             (2)  A copy of a declaration under subsection (1) must be published in the Gazette.

             (3)  The Designated Authority may form an opinion for the purposes of this section if the Designated Authority considers that there are reasonable grounds for doing so having regard to any information the Designated Authority has, whether given by the permittee or otherwise.

Nomination by Designated Authority

             (4)  If the Designated Authority has made a nomination under section 130, the Designated Authority must, by notice published in the Gazette, declare the nominated block or blocks to be a location.

132  Revocation of declaration

Revocation at the request of an exploration permittee

             (1)  If:

                     (a)  a petroleum exploration permit is in force over a block that constitutes, or the blocks that constitute, a location; and

                     (b)  the permittee requests the Designated Authority to revoke the declaration of the location;

the Designated Authority may, by writing, revoke the declaration of the location.

             (2)  A copy of a revocation under subsection (1) is to be published in the Gazette.

Revocation where block is no longer the subject of a petroleum exploration permit or a petroleum retention lease

             (3)  If:

                     (a)  a block or blocks constituting or forming part of a location was or were the subject of a petroleum exploration permit or a petroleum retention lease; and

                     (b)  that block is, or those blocks are, no longer the subject of the permit or lease;

the Designated Authority must, by notice published in the Gazette:

                     (c)  in a case where that block constitutes, or those blocks constitute, that location—revoke the declaration of that location; or

                     (d)  in a case where that block forms, or those blocks form, part of that location—revoke the declaration of that location to the extent to which the declaration relates to that block or those blocks.

             (4)  Subsection (3) does not apply in relation to a block if:

                     (a)  a person has applied for the grant of a petroleum production licence over the block, and the Joint Authority has not made a decision in relation to the application; or

                     (b)  a petroleum production licence is in force in relation to the block.

             (5)  Subsection (3) does not apply in relation to a block if:

                     (a)  a person has applied for the grant of a petroleum retention lease over the block, and the Joint Authority has not made a decision in relation to the application; or

                     (b)  a petroleum retention lease is in force in relation to the block.

Revocation if petroleum retention lease is granted

             (6)  If a petroleum retention lease is granted in relation to a block or blocks forming part of a location, the Designated Authority must, by notice published in the Gazette, revoke the declaration of the location to the extent to which the declaration relates to the block that is, or the blocks that are, not within the petroleum retention lease area.

Revocation if petroleum retention lease refused

             (7)  If:

                     (a)  the Joint Authority refuses to grant a petroleum retention lease in relation to a block or blocks constituting or forming part of a location; and

                     (b)  the reason, or one of the reasons, for the refusal is that the Joint Authority is not satisfied as to the matter referred to in subparagraph 142(b)(ii) (which deals with commercial viability);

the Designated Authority must, by notice published in the Gazette, revoke the declaration of that location.

Note:          If a petroleum exploration permit is in force over a block that constitutes a location, the permittee’s application for a petroleum retention lease over the block is rejected as mentioned in subsection (7), and the permittee wants to apply for a petroleum production licence, then the permittee must re‑nominate the block for declaration as a location before the permittee applies for the petroleum production licence.

Revocation if petroleum production licence granted

             (8)  If:

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

                              (i)  section 168 or 170; or

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

                     (b)  the application specifies 2 or more blocks; and

                     (c)  a petroleum production licence is granted in respect of:

                              (i)  only one of the blocks; or

                             (ii)  some, but not all, of the blocks; and

                     (d)  the remaining block or blocks form part of a location;

the Designated Authority must, by notice published in the Gazette, revoke the declaration of the location to the extent to which the declaration relates to the remaining block or blocks.

Note 1:       Section 168 and clause 2 of Schedule 4 deal with applications by permittees.

Note 2:       Section 170 and clause 4 of Schedule 4 deal with applications by lessees.

133  Variation of declaration

             (1)  If a petroleum exploration permit is in force over a block that constitutes, or blocks that constitute, a location, the Designated Authority may, by writing, vary the declaration of the location:

                     (a)  by adding to the location a block:

                              (i)  that is in the permit area; and

                             (ii)  to which, in the opinion of the Designated Authority, a petroleum pool within the location extends; or

                     (b)  by deleting from the location a block to which, in the opinion of the Designated Authority, no petroleum pool within the location extends.

             (2)  A copy of a variation under subsection (1) is to be published in the Gazette.

             (3)  The Designated Authority may vary a declaration only if:

                     (a)  the permittee requests the variation; or

                     (b)  all of the following conditions are satisfied:

                              (i)  the Designated Authority gives the permittee written notice of the proposed variation, identifying the block to be added to, or deleted from, the location;

                             (ii)  the notice invites the permittee to give the Designated Authority a submission about the proposed variation;

                            (iii)  the notice specifies a time limit for making the submission;

                            (iv)  the Designated Authority has considered any submission made in accordance with the notice.

             (4)  The time limit must be at least 30 days after the notice is given.

             (5)  The Designated Authority may form an opinion for the purposes of this section if the Designated Authority considers that there are reasonable grounds for doing so having regard to any information the Designated Authority has, whether given by the permittee or otherwise.


 

Part 2.3Petroleum retention leases

Division 1General provisions

134  Simplified outline

                   The following is a simplified outline of this Part:

•      This Part provides for the grant of petroleum retention leases over blocks in an offshore area.

•      A petroleum retention lease authorises the lessee to explore for petroleum in the lease area.

•      A petroleum retention lease over a block may be granted to:

               (a)     the holder of a petroleum exploration permit over the block; or

               (b)     the holder of a life‑of‑field petroleum production licence over the block.

•      The criteria for granting a petroleum retention lease over a block are:

               (a)     the block contains petroleum; and

               (b)     the recovery of petroleum is not currently commercially viable, but is likely to become commercially viable within 15 years.

135  Rights conferred by petroleum retention lease

             (1)  A petroleum retention lease authorises the lessee, in accordance with the conditions (if any) to which the lease is subject:

                     (a)  to explore for petroleum in the lease area; and

                     (b)  to recover petroleum on an appraisal basis in the lease area; and

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

             (2)  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.

             (3)  The regulations may provide that a petroleum 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.

             (4)  The rights conferred on the lessee by or under subsection (1) or (3) are subject to this Act and the regulations.

136  Conditions of petroleum retention leases

             (1)  The Joint Authority may grant a petroleum retention lease subject to whatever conditions the Joint Authority thinks appropriate.

             (2)  The conditions (if any) must be specified in the lease.

Lease to which Royalty Act applies

             (3)  A petroleum retention lease to which the Royalty Act applies is subject to a condition that the lessee will comply with the provisions of the Royalty Act.

Note:          The Royalty Act applies to a small number of North West Shelf titles.

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

Re‑evaluation of commercial viability

             (5)  A petroleum retention lease is subject to a condition that if the Designated Authority gives the lessee a written notice requesting the lessee to:

                     (a)  re‑evaluate the commercial viability of petroleum production in the lease area (otherwise than by the drilling of wells); and

                     (b)  inform the Designated Authority in writing of the results of the re‑evaluation;

the lessee must comply with the request within:

                     (c)  the period of 90 days after the notice is given; or

                     (d)  such longer period as the Designated Authority allows.

             (6)  The Designated Authority may allow a longer period under paragraph (5)(d) only on written application made by the lessee within the period of 90 days mentioned in paragraph (5)(c).

             (7)  If a petroleum retention lessee has complied with a subsection (5) request during the term of the lease, the Designated Authority must not give the lessee a further subsection (5) request during that term.

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

Work to be carried out by lessee

             (9)  Any or all of the following conditions may be specified in a petroleum retention 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);

                             (ii)  are given in accordance with the lease.

           (10)  Subsection (9) does not limit subsection (1) or (13).

Declared petroleum retention leases—approval of key petroleum operations

           (11)  A declared petroleum 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 137.

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

           (13)  If, under section 137, the responsible Commonwealth Minister approves the carrying on of one or more key petroleum operations under a declared petroleum 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 petroleum 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 6.2; or

                     (c)  Part 6.4.

           (17)  If:

                     (a)  a declared petroleum 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 petroleum 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 264.

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

             (1)  The registered holder of a declared petroleum 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 135 does not imply that a petroleum 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 438.

138  Declared petroleum retention leases

             (1)  If:

                     (a)  a post‑commencement petroleum 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 petroleum retention lessee, determine that the petroleum retention lease is a declared petroleum 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 petroleum 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 petroleum retention lessee, revoke the determination.

139  Duration of petroleum retention lease

             (1)  A petroleum retention 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)  Subsection (1) has effect subject to this Chapter.

Note 1:       For a special rule about the extension of the duration of a petroleum retention lease if the lessee applies for a petroleum production licence, see section 140.

Note 2:       For a special rule about the extension of the duration of petroleum retention leases pending decisions on renewal applications, see subsection 153(5).

Note 3:       For special rules about the duration of a petroleum retention lease once a decision has been made refusing to renew the lease, see subsections 155(6) and (7).

Note 4:       For a special rule about the extension of the duration of a petroleum retention lease following a suspension or exemption decision, see sections 265 and 267.

Note 5:       For the revocation of a petroleum retention lease, see section 188 and clause 8 of Schedule 4.

Note 6:       For a special rule about when a petroleum retention lease ceases to be in force following the grant of a petroleum production licence, see section 176.

Note 7:       For the surrender of a petroleum retention lease, see Part 2.12.

Note 8:       For the cancellation of a petroleum retention lease, see Part 2.13.

140  Extension of petroleum retention lease if lessee applies for petroleum production licence

             (1)  If:

                     (a)  a petroleum retention 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 Designated Authority for the grant by the Joint Authority of a petroleum production 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 Joint Authority gives the lessee an offer document relating to a petroleum production licence over the block or one or more of the blocks

the licence is granted, the lessee withdraws the application or the application lapses.

2

the Joint Authority decides not to grant a petroleum production licence to the lessee

notice of the decision is given to the lessee.

             (2)  Subsection (1) has effect subject to this Chapter but despite section 139.

Note:          See the notes at the end of section 139.


 

Division 2Obtaining a petroleum retention lease

Subdivision AApplication for petroleum retention lease by the holder of a petroleum exploration permit

141  Application for petroleum retention lease by the holder of a petroleum exploration permit

             (1)  If a petroleum exploration permit is in force over a block that constitutes, or the blocks that constitute, a location, the permittee may, within the application period, apply to the Designated Authority for the grant by the Joint Authority of a petroleum retention lease over that block or over one or more of those 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 area comprised in the block or blocks specified in the application; and

                     (b)  the current commercial viability of the recovery of petroleum from that area; and

                     (c)  the possible future commercial viability of the recovery of petroleum from that area.

Note 1:       Part 2.10 contains additional provisions about application procedures.

Note 2:       Section 256 requires the application to be accompanied by an application fee.

Note 3:       Section 258 enables the Designated Authority to require the applicant to give further information.

Application period

             (3)  The application period for an application under this section is:

                     (a)  the period of 2 years after the day (the declaration day) on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location; or

                     (b)  such longer period, not more than 4 years after the declaration day, as the Designated Authority allows.

             (4)  The Designated Authority may allow a longer period under paragraph (3)(b) only on written application made by the permittee within the period of 2 years mentioned in paragraph (3)(a).

142  Grant of petroleum retention lease—offer document

                   If:

                     (a)  an application for a petroleum retention lease has been made under section 141; and

                     (b)  the Joint Authority is satisfied that:

                              (i)  the area comprised in the block, or any one or more of the blocks, specified in the application contains petroleum; and

                             (ii)  the recovery of petroleum from that area is not, at the time of the application, commercially viable but is likely to become commercially viable within 15 years after that time;

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 a petroleum retention lease over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph (b).

Note 1:       Section 259 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 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 258(3).

143  Refusal to grant petroleum retention lease

             (1)  This section applies if an application for a petroleum retention lease has been made under section 141.

             (2)  If the Joint Authority is not satisfied as to the matters referred to in paragraph 142(b) in relation to the block, or all the blocks, specified in the application, the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum retention lease to the applicant.

             (3)  If:

                     (a)  the application specifies 2 or more blocks; and

                     (b)  the Joint Authority is not satisfied as to the matters referred to in paragraph 142(b) in relation to:

                              (i)  only one of the blocks; or

                             (ii)  some, but not all, of the blocks;

the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum retention lease to the applicant in relation to the block or blocks as to which the Joint Authority is not satisfied as mentioned in paragraph 142(b).

144  Grant of petroleum retention lease

                   If:

                     (a)  an applicant has been given an offer document under section 142; and

                     (b)  the applicant has made a request under section 260 in relation to the offer document within the period applicable under that section;

the Joint Authority must grant the applicant a petroleum retention lease over the block or blocks specified in the offer document.

Note:          If the applicant does not make a request under section 260 within the period applicable under that section, the application lapses at the end of that period—see subsection 260(4).

145  Petroleum exploration permit ceases to be in force when petroleum retention lease comes into force

                   When a petroleum retention lease under section 144 comes into force in relation to one or more blocks, a petroleum exploration permit ceases to be in force to the extent to which it relates to those blocks.

146  Petroleum exploration permit transferred—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a petroleum exploration permit is registered under section 479:

                     (a)  after an application has been made under section 141 for the grant of a petroleum retention lease over a block or blocks in relation to which the petroleum exploration permit is in force; and

                     (b)  before any action has been taken by the Joint Authority under section 142 or 143 in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 141 to 144 and Part 2.10 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 petroleum retention lease by the holder of a life‑of‑field petroleum production licence

147  Application for petroleum retention lease by the holder of a life‑of‑field petroleum production licence

             (1)  If:

                     (a)  a life‑of‑field petroleum production licence is in force over a block or blocks; and

                     (b)  the following conditions are satisfied in relation to an area (the unused area) that consists of the block or any or all of the blocks:

                              (i)  petroleum has been found to exist in the unused area;

                             (ii)  no petroleum recovery operations are being carried on under the licence in relation to the unused area;

the licensee may, within the application period, apply to the Designated Authority for the grant by the Joint Authority of a petroleum retention lease over the unused area.

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 unused area; and

                     (b)  the current commercial viability of the recovery of petroleum from the unused area; and

                     (c)  the possible future commercial viability of the recovery of petroleum from the unused area.

Note 1:       Part 2.10 contains additional provisions about application procedures.

Note 2:       Section 256 requires the application to be accompanied by an application fee.

Note 3:       Section 258 enables the Designated Authority to require the applicant to give further information.

Application period

             (3)  The application period for an application under this section by a petroleum production licensee is the period of 5 years that began on:

                     (a)  the day on which the licence was granted; or

                     (b)  if any petroleum recovery operations have been carried on under the licence in relation to the unused area—the last day on which any such operations were so carried on.

148  Grant of petroleum retention lease—offer document

                   If:

                     (a)  an application for a petroleum retention lease has been made under section 147; and

                     (b)  the Joint Authority is satisfied that recovery of petroleum from the unused area:

                              (i)  is not, at the time of the application, commercially viable; and

                             (ii)  is likely to become commercially viable within the period of 15 years after that time;

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 a petroleum retention lease over the unused area.

Note 1:       Section 259 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 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document—see subsection 258(3).

149  Refusal to grant petroleum retention lease

                   If:

                     (a)  an application for a petroleum retention lease has been made under section 147; and

                     (b)  the Joint Authority is not satisfied as to the matters referred to in paragraph 148(b) in relation to the unused area;

the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum retention lease to the applicant.

Note:          Consultation procedures apply—see section 262.

150  Grant of petroleum retention lease

                   If:

                     (a)  an applicant has been given an offer document under section 148; and

                     (b)  the applicant has made a request under section 260 in relation to the offer document within the period applicable under that section;

the Joint Authority must grant the applicant a petroleum retention lease over the unused area.

Note:          If the applicant does not make a request under section 260 within the period applicable under that section, the application lapses at the end of that period—see subsection 260(4).

151  Petroleum production licence ceases to be in force when petroleum retention lease comes into force

                   When a petroleum retention lease under section 150 comes into force in relation to one or more blocks, a petroleum production licence ceases to be in force to the extent to which it relates to those blocks.

152  Petroleum production licence transferred—transferee to be treated as applicant

Scope

             (1)  This section applies if a transfer of a petroleum production licence is registered under section 479:

                     (a)  after an application has been made under section 147 for the grant of a petroleum retention lease over a block or blocks in relation to which the petroleum production licence is in force; and

                     (b)  before any action has been taken by the Joint Authority under section 148 or 149 in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer, sections 147 to 150 and Part 2.10 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 petroleum retention leases

153  Application for renewal of petroleum retention lease

Application for renewal

             (1)  A petroleum retention lessee may apply to the Designated Authority for the renewal by the Joint Authority of the lease.

             (2)  An application to renew a petroleum retention 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.

             (3)  Despite subsection (2), the Designated Authority may accept an application to renew a petroleum retention 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.

             (4)  An application to renew a petroleum retention lease must be accompanied by details of:

                     (a)  the lessee’s proposals for work and expenditure in relation to the lease area; and

                     (b)  the current commercial viability of recovery of petroleum from the lease area; and

                     (c)  the possible future commercial viability of recovery of petroleum from the lease area.

Note 1:       Part 2.10 contains additional provisions about application procedures.

Note 2:       Section 256 requires the application to be accompanied by an application fee.

Note 3:       Section 258 enables the Designated Authority to require the applicant to give further information.

Extension of duration of petroleum retention lease pending decision on application

             (5)  If:

                     (a)  a petroleum retention lessee makes an application to renew the lease; and

                     (b)  the lease would, apart from this subsection, expire:

                              (i)  before the Joint Authority grants, or refuses to grant, the renewal of the lease; or

                             (ii)  before the application lapses as provided by section 260;

the lease continues in force:

                     (c)  until the Joint Authority grants, or refuses to grant, the renewal of the lease; or

                     (d)  until the application so lapses;

whichever happens first.

             (6)  Subsection (5) has effect subject to this Chapter but despite section 139.

Note:          See the notes at the end of section 139.

154  Renewal of petroleum retention lease—offer document

Scope

             (1)  This section applies if an application to renew a petroleum retention lease has been made under section 153.

Offer document—compliance with conditions etc.

             (2)  If:

                     (a)  each of the following has been complied with:

                              (i)  the conditions to which the petroleum retention lease is, or has from time to time been, subject;

                             (ii)  the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1;

                            (iii)  the regulations; and

                     (b)  the Joint Authority is satisfied that recovery of petroleum from the lease area:

                              (i)  is not, at the time of the application, commercially viable; and

                             (ii)  is likely to become commercially viable within the period of 15 years after that time;

the Joint Authority must give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to renew the lease.

Note:          Section 259 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 petroleum retention lease is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  the Joint Authority is satisfied that there are sufficient grounds to warrant the granting of the renewal of the petroleum retention lease; and

                     (c)  the Joint Authority is satisfied that recovery of petroleum from the lease area:

                              (i)  is not, at the time of the application, commercially viable; and

                             (ii)  is likely to become commercially viable within the period of 15 years after that time;

the Joint Authority may give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to renew the lease.

Note:          Section 259 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

155  Refusal to renew petroleum retention lease

Scope

             (1)  This section applies if an application to renew a petroleum retention lease has been made under section 153.

Refusal on grounds of non‑compliance with conditions

             (2)  If:

                     (a)  any of:

                              (i)  the conditions to which the petroleum retention lease is, or has from time to time been, subject; or

                             (ii)  the provisions of this Chapter, Chapter 4, Chapter 6 and Part 7.1; or

                            (iii)  the provisions of the regulations;

                            have not been complied with; and

                     (b)  the Joint Authority is not satisfied that there are sufficient grounds to warrant the granting of the renewal of the petroleum retention lease;

the Joint Authority must, by written notice given to the applicant, refuse to renew the lease.

Note:          Consultation procedures apply—see section 262.

Refusal on grounds of commercial viability

             (3)  If the Joint Authority is satisfied that recovery of petroleum from the lease area is, at the time of the application, commercially viable, the Joint Authority must, by written notice given to the applicant, refuse to renew the lease.

Note:          Consultation procedures apply—see section 262.

             (4)  If the Joint Authority is satisfied that recovery of petroleum from the lease area is unlikely to become commercially viable within the period of 15 years after the time of the application, the Joint Authority must, by written notice given to the applicant, refuse to renew the lease.

Note:          Consultation procedures apply—see section 262.

Application for petroleum production licence within 12 months after refusal

             (5)  A notice of refusal under subsection (3) must contain a statement to the effect that the lessee may, within 12 months after the notice was given, apply for a petroleum production licence over one or more of the blocks comprised in the lease.

             (6)  If:

                     (a)  the Joint Authority 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 petroleum production 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 Joint Authority grants, or refuses to grant, the petroleum production licence; or

                             (ii)  before the application lapses;

the lease continues in force until:

                     (e)  the Joint Authority grants, or refuses to grant, the petroleum production licence; or

                      (f)  the application lapses;

whichever happens first.

             (7)  If:

                     (a)  the Joint Authority 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 (6) 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.

             (8)  Subsections (6) and (7) have effect subject to this Chapter but despite section 139.

Note:          See the notes at the end of section 139.

156  Renewal of petroleum retention lease

                   If:

                     (a)  an applicant has been given an offer document under section 154; and

                     (b)  the applicant has made a request under section 260 in relation to the offer document within the period applicable under that section;

the Joint Authority must renew the petroleum retention lease.

Note:          If the applicant does not make a request under section 260 within the period applicable under that section, the application lapses at the end of that period—see subsection 260(4).


 

Division 4Revocation of petroleum retention leases

157  Notice of proposal to revoke petroleum retention lease

Scope

             (1)  This section applies if:

                     (a)  a petroleum retention lessee has been given a notice under subsection 136(5) during the term of the lease; and

                     (b)  the lessee has carried out, and has informed the Designated Authority of the results of, the re‑evaluation required by the notice; and

                     (c)  the lessee has not made an application to renew the lease; and

                     (d)  after consideration of:

                              (i)  the results of the re‑evaluation referred to in paragraph (b); and

                             (ii)  such other matters as the Joint Authority thinks fit;

                            the Joint Authority is of the opinion that recovery of petroleum from the lease area is commercially viable.

Note:          Subsection 136(5) deals with re‑evaluation of the commercial viability of petroleum production in the lease area.

Notice of proposal to revoke lease

             (2)  The Joint Authority may give the lessee, and such other persons (if any) as the Joint Authority thinks appropriate, a written notice:

                     (a)  telling the recipient of the notice that the Joint Authority:

                              (i)  has formed the opinion that recovery of petroleum from the lease area is commercially viable; and

                             (ii)  proposes to revoke the lease; and

                     (b)  inviting the recipient of the notice to make a written submission to the Joint Authority about the proposal to revoke the lease; and

                     (c)  specifying a time limit for making that submission.

Note:          All communications to the Joint Authority are to be made through the Designated Authority—see section 63.

             (3)  The time limit must be at least 30 days after the notice is given.

158  Revocation of petroleum retention lease

             (1)  If:

                     (a)  a notice under subsection 157(2) is given to:

                              (i)  the lessee of a petroleum retention lease; or

                             (ii)  the lessee of a petroleum retention lease and one or more other persons; and

                     (b)  either:

                              (i)  the lessee does not make a submission in accordance with the notice; or

                             (ii)  the Joint Authority, after consideration of any submissions made in accordance with the notice, determines that the lease should be revoked;

the Joint Authority must, by written notice given to the lessee, revoke the lease.

When revocation takes effect

             (2)  If:

                     (a)  a petroleum retention lease is revoked under subsection (1); and

                     (b)  the lessee applies for a petroleum production licence in relation to one or more of the blocks comprised in the lease within the period of 12 months beginning on the day on which the notice of revocation was given;

the revocation of the lease takes effect:

                     (c)  when the Joint Authority grants, or refuses to grant, the petroleum production licence; or

                     (d)  when the application lapses;

whichever happens first.

             (3)  If:

                     (a)  a petroleum retention lease is revoked under subsection (1); and

                     (b)  the lessee does not apply for a petroleum production licence in relation to one or more of the blocks comprised in the lease within the period of 12 months beginning on the day on which the notice of revocation was given;

the revocation of the lease takes effect at the end of that 12‑month period.

             (4)  If a petroleum retention lease is revoked under subsection (1), the lease continues in force until the revocation takes effect in accordance with subsection (2) or (3).


 

Part 2.4Petroleum production licences

Division 1General provisions

159  Simplified outline

                   The following is a simplified outline of this Part:

•      It is an offence to recover petroleum in an offshore area except:

               (a)     under a petroleum production licence; or

               (b)     as otherwise authorised or required by or under this Act.

•      This Part provides for the grant of petroleum production licences over blocks in an offshore area.

•      A petroleum production licence authorises the licensee to carry out petroleum recovery operations in the licence area.

•      There are 3 ways in which a petroleum production licence can be granted:

               (a)     grant of a petroleum production licence as a result of an application made by a petroleum exploration permittee or a petroleum retention lessee;

               (b)     grant of a petroleum production licence over a surrendered block or a similar block;

               (c)     grant of a petroleum production licence over an individual block in exchange for another licence that was in force over the same block.

160  Prohibition of unauthorised recovery of petroleum in offshore area

             (1)  A person commits an offence if:

                     (a)  the person carries on petroleum recovery operations; and

                     (b)  the operations are carried on in an offshore area.

Penalty:  Imprisonment for 5 years.

             (2)  Subsection (1) does not apply if the operations are:

                     (a)  authorised by a petroleum production licence; 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.

161  Rights conferred by petroleum production licence

             (1)  A petroleum production licence authorises the licensee, in accordance with the conditions (if any) to which the licence is subject:

                     (a)  to recover petroleum in the licence area; and

                     (b)  to recover petroleum from the licence area in another area to which the licensee has lawful access for that purpose; and

                     (c)  to explore for petroleum in the licence area; and

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

             (2)  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.

             (3)  The regulations may provide that a petroleum 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.

             (4)  The regulations may provide that, if:

                     (a)  petroleum is recovered in the licence area of a petroleum 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 petroleum 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.

             (5)  Subsections (3) and (4) do not limit subsection (1).

             (6)  The rights conferred on the licensee by or under subsection (1), (3) or (4) are subject to this Act and the regulations.

162  Conditions of petroleum production licences

             (1)  The Joint Authority may grant a petroleum production licence subject to whatever conditions the Joint Authority thinks appropriate.

Note:          A grant of a licence may be a grant by way of renewal—see section 11.

             (2)  The conditions (if any) must be specified in the licence.

Petroleum production licence to which the Royalty Act applies

             (3)  A petroleum production licence to which the Royalty Act applies is subject to a condition that the licensee will comply with the provisions of the Royalty Act.

Note:          The Royalty Act applies to a small number of North West Shelf titles.

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

General condition

             (5)  A petroleum production licence may be granted subject to a general condition requiring the licensee to:

                     (a)  explore for petroleum in the licence area with a view to determining whether there is any additional recoverable petroleum in the licence area; and

                     (b)  recover such petroleum if it is commercially viable to do so.

             (6)  Subsection (5) does not limit subsection (1) or (12).

Specific conditions

             (7)  Despite subsection (1), a petroleum production licence must not be granted subject to specific conditions requiring the licensee to:

                     (a)  make a well in the licence area; or

                     (b)  carry out a seismic survey, or any other kind of survey, in, or in relation to, the licence area; or

                     (c)  spend particular amounts on the carrying out of work in, or in relation to, the licence area.

             (8)  To avoid doubt, a condition covered by subsection (5) does not breach subsection (7).

Renewal conditions

             (9)  In making a decision about the conditions to which a petroleum production licence granted on renewal will be subject, the Joint Authority must have regard to:

                     (a)  the investment of the licensee, or of any former licensee, during the term of:

                              (i)  the original petroleum production licence; or

                             (ii)  any petroleum production licence granted on a previous renewal;

                            where the investment relates to:

                            (iii)  operations authorised by the licence concerned; or

                            (iv)  any other development connected with those operations; and

                     (b)  such other matters (if any) as the Joint Authority considers relevant.

Declared petroleum production licences—approval of key petroleum operations

           (10)  A declared petroleum 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 163.

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

           (12)  If, under section 163, the responsible Commonwealth Minister approves the carrying on of one or more key petroleum operations under a declared petroleum 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 petroleum 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 6.2; or

                     (c)  Part 6.4.

           (16)  If:

                     (a)  a declared petroleum 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 petroleum 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 264.

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