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Offshore Petroleum and Greenhouse Gas Storage Act 2006

Authoritative Version
  • - C2014C00504
  • In force - Superseded Version
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Act No. 14 of 2006 as amended, taking into account amendments up to Offshore Petroleum and Greenhouse Gas Storage Amendment (Regulatory Powers and Other Measures) Act 2014
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: Industry
Registered 01 Aug 2014
Start Date 18 Jul 2014
End Date 30 Sep 2014

Description: Commonwealth Coat of Arms

Offshore Petroleum and Greenhouse Gas Storage Act 2006

No. 14, 2006 as amended

Compilation start date:                     18 July 2014

Includes amendments up to:            Act No. 80, 2014

This compilation has been split into 3 volumes

Volume 1:       sections 1–465

Volume 2:       sections 466–791

Volume 3:       Schedules

                        Endnotes

Each volume has its own contents

 

About this compilation

This compilation

This is a compilation of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 as in force on 18 July 2014. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 30 July 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Chapter 1—Introduction                                                                                       1

Part 1.1—Legislative formalities and background                                            1

1............ Short title............................................................................................. 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                                                                                                  13

Division 1—General                                                                                                    13

7............ Definitions........................................................................................ 13

8............ Offshore areas of the States and Territories...................................... 40

9............ Spaces above and below offshore areas............................................ 43

10.......... Term of titles..................................................................................... 44

11.......... Renewal of titles................................................................................ 46

12.......... Variation of titles............................................................................... 47

13.......... Tied titles........................................................................................... 48

14.......... Vacated area...................................................................................... 48

15.......... Infrastructure facilities....................................................................... 50

16.......... Terminal station................................................................................. 52

17.......... Terminal point................................................................................... 52

18.......... Declared greenhouse gas facility....................................................... 53

19.......... Extended meaning of explore............................................................ 53

20.......... Potential greenhouse gas storage formation...................................... 54

21.......... Eligible greenhouse gas storage formation........................................ 55

22.......... Potential greenhouse gas injection site.............................................. 58

23.......... Incidental greenhouse gas‑related substance..................................... 58

24.......... Site plan—identified greenhouse gas storage formation.................... 59

25.......... Significant risk of a significant adverse impact—approval of key petroleum operations          59

26.......... Significant risk of a significant adverse impact—grant of petroleum production licence          61

27.......... Significant risk of a significant adverse impact—approval of key greenhouse gas operations 62

28.......... Significant risk of a significant adverse impact—grant of greenhouse gas injection licence     64

29.......... Significant risk of a significant adverse impact—power of responsible Commonwealth Minister to protect petroleum.......................................................................................................... 66

30.......... Direction given by the responsible Commonwealth Minister............ 68

31.......... Securities........................................................................................... 68

32.......... Designated agreements...................................................................... 69

33.......... Graticulation of Earth’s surface and constitution of blocks............... 70

34.......... External Territories............................................................................ 72

35.......... Application of Act............................................................................. 72

36.......... Certain pipelines provisions to apply subject to international obligations 73

Division 2—Datum provisions                                                                               74

Subdivision A—Datum for ascertaining the position of points etc.             74

37.......... Objects.............................................................................................. 74

38.......... Definitions........................................................................................ 74

39.......... Australian Geodetic Datum............................................................... 75

40.......... Geocentric Datum of Australia.......................................................... 75

41.......... Current datum, previous datum and changeover time........................ 76

42.......... Use of current datum......................................................................... 76

43.......... Use of previous datum...................................................................... 78

44.......... Variation of titles and instruments..................................................... 80

45.......... Variation of applications for titles..................................................... 82

46.......... No change to actual position of point, line or area............................. 82

47.......... Transitional regulations..................................................................... 83

48.......... International Seabed Agreements...................................................... 83

Subdivision B—Certain points etc. specified in an International Seabed Agreement to be ascertained by other means                                                                                                         83

49.......... Certain points etc. specified in an International Seabed Agreement to be ascertained by other means      83

Division 3—Apportionment of petroleum recovered from adjoining title areas              85

50.......... Title................................................................................................... 85

51.......... Titleholder and title area.................................................................... 85

52.......... Petroleum recovered through inclined well....................................... 85

53.......... Petroleum pool straddling 2 title areas etc......................................... 86

54.......... Petroleum pool straddling Commonwealth title area and State title area etc.             86

55.......... Unit development.............................................................................. 88

Part 1.3—Joint Authorities                                                                                            89

Division 1—Joint Authorities                                                                                 89

56.......... Joint Authorities................................................................................ 89

57.......... Functions and powers of Joint Authorities....................................... 90

58.......... Procedure of Joint Authority............................................................. 91

59.......... Decision‑making............................................................................... 91

60.......... Opinion or state of mind of Joint Authority...................................... 92

61.......... Records of decisions of Joint Authority............................................ 92

62.......... Signing of documents....................................................................... 93

63.......... Communications with Joint Authority.............................................. 93

64.......... Judicial notice of signature of member of a Joint Authority.............. 93

65.......... Issue of documents, and service of notices, on behalf of Joint Authority 95

66.......... Delegation by a Joint Authority for a State (other than Tasmania) or the Northern Territory   95

66A....... Delegation by Joint Authority for Tasmania..................................... 97

67.......... Delegation by Greater Sunrise Offshore Petroleum Joint Authority. 98

68.......... Delegation by Joint Authority for an external Territory.................... 98

69.......... Greater Sunrise Offshore Petroleum Joint Authority—consultations 99

Division 3—Finance                                                                                                   100

75.......... Payments by the Commonwealth to Western Australia—Royalty Act payments     100

Part 1.4—Application of State and Territory laws in offshore areas 102

78.......... Simplified outline............................................................................ 102

79.......... Meaning of laws............................................................................. 102

80.......... Application of State and Territory laws in offshore areas............... 102

81.......... Disapplication and modification of laws......................................... 104

82.......... Limit on application of laws............................................................ 105

83.......... Inconsistent law not applied............................................................ 105

84.......... Criminal laws not applied................................................................ 105

85.......... Tax laws not applied....................................................................... 105

86.......... Appropriation law not applied......................................................... 106

87.......... Applied laws not to confer Commonwealth judicial power............. 106

88.......... Applied laws not to contravene constitutional restrictions on conferral of powers on courts   106

89.......... State or Northern Territory occupational health and safety laws do not apply in relation to facilities       106

90.......... No limits on ordinary operation of law........................................... 109

91.......... Jurisdiction of State courts.............................................................. 109

92.......... Jurisdiction of Territory courts........................................................ 109

93.......... Validation of certain acts................................................................. 110

94.......... Certain provisions not affected by this Part..................................... 110

Chapter 2—Regulation of activities relating to petroleum 111

Part 2.1—Introduction                                                                                                    111

95.......... Simplified outline............................................................................ 111

Part 2.2—Petroleum exploration permits                                                            113

Division 1—General provisions                                                                          113

96.......... Simplified outline............................................................................ 113

97.......... Prohibition of unauthorised exploration for petroleum in offshore area 114

98.......... Rights conferred by petroleum exploration permit.......................... 114

99.......... Conditions of petroleum exploration permits.................................. 115

100........ Declared petroleum exploration permit—approval by responsible Commonwealth Minister of key petroleum operations........................................................................................................ 118

101........ Declared petroleum exploration permits.......................................... 121

102........ Duration of petroleum exploration permit....................................... 122

103........ Extension of petroleum exploration permit if permittee applies for petroleum retention lease or petroleum production licence............................................................................................. 123

Division 2—Obtaining a work‑bid petroleum exploration permit    125

104........ Application for work‑bid petroleum exploration permit—advertising of blocks      125

105........ Grant of work‑bid petroleum exploration permit—offer document. 126

106........ Ranking of multiple applicants for work‑bid petroleum exploration permit              127

107........ Grant of work‑bid petroleum exploration permit............................. 129

108........ Withdrawal of application............................................................... 129

109........ Effect of withdrawal or lapse of application.................................... 130

Division 3—Obtaining a cash‑bid petroleum exploration permit     132

110........ Cash‑bid petroleum exploration permit—application...................... 132

111........ Cash‑bid petroleum exploration permit—cash bids......................... 133

112........ Cash‑bid petroleum exploration permit—cash bids less than the reserve price         134

112A..... Cash‑bid petroleum exploration permit—highest cash bids at or over the reserve price           136

112B..... Cash‑bid petroleum exploration permit—tie‑breaking invitation..... 138

113........ Cash‑bid petroleum exploration permit—grant............................... 139

114........ Extension of cash‑bid petroleum exploration permit....................... 140

Division 4—Obtaining a special petroleum exploration permit over a surrendered block or certain other blocks                                                                                                      142

115........ Application for a special petroleum exploration permit over a surrendered block or certain other blocks 142

116........ Grant of special petroleum exploration permit—only one application 144

117........ Grant of special petroleum exploration permit—2 or more applications 144

118........ Grant of special petroleum exploration permit................................. 147

Division 5—Renewal of petroleum exploration permits                        148

119........ Application for renewal of petroleum exploration permit................ 148

120........ Non‑renewable cash‑bid petroleum exploration permits................. 149

121........ Limit on renewal of cash‑bid petroleum exploration permits........... 149

122........ Limits on renewal of work‑bid petroleum exploration permits and special petroleum exploration permits               149

123........ Standard halving rules..................................................................... 151

124........ Modified halving rules.................................................................... 153

125........ Renewal of petroleum exploration permit—offer document............ 154

126........ Refusal to renew petroleum exploration permit............................... 155

127........ Renewal of petroleum exploration permit........................................ 155

Division 6—Locations                                                                                              156

128........ Simplified outline............................................................................ 156

129........ Nomination of blocks as a location................................................. 156

130........ Requirement to nominate blocks as a location................................. 157

131........ Declaration of location.................................................................... 158

132........ Revocation of declaration................................................................ 159

133........ Variation of declaration................................................................... 161

Part 2.3—Petroleum retention leases                                                                     163

Division 1—General provisions                                                                          163

134........ Simplified outline............................................................................ 163

135........ Rights conferred by petroleum retention lease................................. 163

136........ Conditions of petroleum retention leases......................................... 164

137........ Declared petroleum retention lease—approval by responsible Commonwealth Minister of key petroleum operations........................................................................................................ 167

138........ Declared petroleum retention leases................................................ 170

139........ Duration of petroleum retention lease.............................................. 171

140........ Extension of petroleum retention lease if lessee applies for petroleum production licence        172

Division 2—Obtaining a petroleum retention lease                                  174

Subdivision A—Application for petroleum retention lease by the holder of a petroleum exploration permit      174

141........ Application for petroleum retention lease by the holder of a petroleum exploration permit      174

142........ Grant of petroleum retention lease—offer document....................... 175

143........ Refusal to grant petroleum retention lease....................................... 175

143A..... Time limit for making decision about grant of petroleum retention lease  176

144........ Grant of petroleum retention lease................................................... 177

145........ Petroleum exploration permit ceases to be in force when petroleum retention lease comes into force      177

146........ Petroleum exploration permit transferred—transferee to be treated as applicant       177

Subdivision B—Application for petroleum retention lease by the holder of a life‑of‑field petroleum production licence                                                                                          178

147........ Application for petroleum retention lease by the holder of a life‑of‑field petroleum production licence   178

148........ Grant of petroleum retention lease—offer document....................... 179

149........ Refusal to grant petroleum retention lease....................................... 180

149A..... Time limit for making decision about grant of petroleum retention lease  180

150........ Grant of petroleum retention lease................................................... 181

151........ Petroleum production licence ceases to be in force when petroleum retention lease comes into force      181

152........ Petroleum production licence transferred—transferee to be treated as applicant       181

Division 3—Renewal of petroleum retention leases                                 183

153........ Application for renewal of petroleum retention lease...................... 183

154........ Renewal of petroleum retention lease—offer document.................. 184

155........ Refusal to renew petroleum retention lease..................................... 186

155A..... Time limit for making decision about renewal of petroleum retention lease              188

156........ Renewal of petroleum retention lease.............................................. 188

Division 4—Revocation of petroleum retention leases                           190

157........ Notice of proposal to revoke petroleum retention lease................... 190

158........ Revocation of petroleum retention lease.......................................... 191

Part 2.4—Petroleum production licences                                                            193

Division 1—General provisions                                                                          193

159........ Simplified outline............................................................................ 193

160........ Prohibition of unauthorised recovery of petroleum in offshore area 194

161........ Rights conferred by petroleum production licence.......................... 194

162........ Conditions of petroleum production licences.................................. 195

163........ Declared petroleum production licence—approval by responsible Commonwealth Minister of key petroleum operations........................................................................................................ 198

164........ Declared petroleum production licences.......................................... 201

165........ Duration of petroleum production licence....................................... 203

166........ Termination of life‑of‑field petroleum production licence if no recovery operations for 5 years              205

167........ Petroleum production licences to which the Royalty Act applies.... 206

Division 2—Obtaining a petroleum production licence as a result of an application made by a petroleum exploration permittee or a petroleum retention lessee 207

168........ Application for petroleum production licence by permittee............. 207

169........ Application period........................................................................... 208

170........ Application for petroleum production licence by lessee.................. 209

171........ Offer document............................................................................... 210

172........ Consultation—Greater Sunrise unit reservoir petroleum production licence            213

173........ Refusal to grant petroleum production licence................................. 213

173A..... Time limit for making decision about grant of petroleum production licence            217

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.......................................... 219

175........ Grant of petroleum production licence............................................ 220

176........ Petroleum exploration permit or petroleum retention lease ceases to be in force when petroleum production licence comes into force......................................................................................... 220

177........ Petroleum exploration permit or petroleum retention lease transferred—transferee to be treated as applicant           221

Division 3—Obtaining a cash‑bid petroleum production licence over a surrendered block or similar block                                                                                                        222

178........ Application for cash‑bid petroleum production licence over surrendered blocks or similar blocks          222

179........ Grant of cash‑bid petroleum production licence—only one application 223

180........ Grant of cash‑bid petroleum production licence—2 or more applications                224

181........ Grant of cash‑bid petroleum production licence.............................. 226

Division 4—Obtaining petroleum production licences over individual blocks   228

182........ Applications for petroleum production licences over individual blocks 228

183........ Grant of petroleum production licences over individual blocks....... 228

Division 5—Renewal of fixed‑term petroleum production licences 231

184........ Application for renewal of fixed‑term petroleum production licence 231

185........ Renewal of fixed‑term petroleum production licence—offer document 232

186........ Refusal to renew fixed‑term petroleum production licence.............. 234

186A..... Time limit for making decision about renewal of fixed‑term petroleum production licence      235

187........ Renewal of fixed‑term petroleum production licence...................... 235

Division 6—What happens if a block is not taken up                              237

188........ Revocation of petroleum exploration permit or petroleum retention lease to the extent to which it relates to a block not taken up........................................................................................... 237

Division 7—Petroleum field development                                                      239

Subdivision A—Directions about the recovery of petroleum                     239

189........ Direction to recover petroleum........................................................ 239

190........ Directions about the rate of recovery of petroleum.......................... 239

Subdivision B—Unit development                                                                     240

191........ Unit development............................................................................ 240

Part 2.5—Infrastructure licences                                                                             245

Division 1—General provisions                                                                          245

192........ Simplified outline............................................................................ 245

193........ Prohibition of unauthorised construction or operation of an infrastructure facility in an offshore area     245

194........ Rights conferred by an infrastructure licence.................................. 246

195........ Conditions of infrastructure licences............................................... 247

196........ Duration of infrastructure licence.................................................... 247

197........ Termination of infrastructure licence if no operations for 5 years... 247

Division 2—Obtaining an infrastructure licence                                       250

198........ Application for infrastructure licence.............................................. 250

199........ Grant of infrastructure licence—offer document............................. 250

200........ Refusal to grant infrastructure licence............................................. 250

200A..... Time limit for making decision about grant of infrastructure licence 251

201........ Grant of infrastructure licence......................................................... 252

202........ Consultation with petroleum titleholders—grant of infrastructure licence                252

203........ Consultation with greenhouse gas titleholders—grant of infrastructure licence        254

Division 3—Varying an infrastructure licence                                           256

204........ Application for variation of infrastructure licence........................... 256

205........ Variation of infrastructure licence................................................... 256

206........ Consultation with petroleum titleholders—variation of infrastructure licence           257

207........ Consultation with greenhouse gas titleholders—variation of infrastructure licence  259

Division 4—Directions by responsible Commonwealth Minister      262

208........ Directions by responsible Commonwealth Minister....................... 262

Part 2.6—Pipeline licences                                                                                            263

Division 1—General provisions                                                                          263

209........ Simplified outline............................................................................ 263

210........ Prohibition of unauthorised construction or operation of a pipeline in an offshore area           263

211........ Rights conferred by pipeline licence................................................ 264

212........ Conditions of pipeline licences........................................................ 265

213........ Approval by Joint Authority of greenhouse gas substance to be conveyed in a pipeline          266

214........ Duration of pipeline licence............................................................. 267

215........ Termination of pipeline licence if no operations for 5 years............ 268

216........ Alteration or removal of pipeline constructed in breach of this Act. 270

Division 2—Obtaining a pipeline licence                                                        272

217........ Application for pipeline licence....................................................... 272

218........ Rights of petroleum production licensees following application for petroleum‑related pipeline licences by other persons........................................................................................................ 273

219........ Rights of petroleum production licensees following application for greenhouse gas‑related pipeline licences by other persons............................................................................................ 274

220........ Rights of greenhouse gas injection licensees following application for greenhouse gas‑related pipeline licences by other persons............................................................................................ 275

221........ Grant of petroleum‑related pipeline licence—offer document......... 276

222........ Grant of greenhouse gas‑related pipeline licence—offer document. 279

223........ Refusal to grant petroleum‑related pipeline licence.......................... 284

224........ Refusal to grant greenhouse gas‑related pipeline licence................. 285

225........ Grant of pipeline licence.................................................................. 288

Division 3—Varying a pipeline licence                                                            289

226........ Variation of pipeline licence on application by licensee................... 289

227........ Variation of pipeline licence at the request of a Minister or a statutory body            290

Division 4—Pipeline operation                                                                            293

228........ Ceasing to operate pipeline without consent.................................... 293

Part 2.7—Petroleum special prospecting authorities                                    294

Division 1—General provisions                                                                          294

229........ Simplified outline............................................................................ 294

230........ Rights conferred by petroleum special prospecting authority.......... 294

231........ Conditions of petroleum special prospecting authorities................. 295

232........ Duration of petroleum special prospecting authority....................... 295

233........ Petroleum special prospecting authority cannot be transferred........ 295

Division 2—Obtaining a petroleum special prospecting authority  296

234........ Application for petroleum special prospecting authority................. 296

235........ Grant or refusal of petroleum special prospecting authority............ 296

236........ Holders to be informed of the grant of another petroleum special prospecting authority          297

237........ Holders to be informed of the grant of greenhouse gas search authority  297

Part 2.8—Petroleum access authorities                                                                 299

Division 1—General provisions                                                                          299

238........ Simplified outline............................................................................ 299

239........ Rights conferred by petroleum access authority.............................. 299

240........ Conditions of petroleum access authorities..................................... 299

241........ Duration of petroleum access authority........................................... 300

Division 2—Obtaining a petroleum access authority                              301

242........ Application for petroleum access authority..................................... 301

243........ Grant or refusal of petroleum access authority................................ 302

244........ Consultation—grant of petroleum access authority in same offshore area                303

245........ Consultation—approval of grant of petroleum access authority in adjoining offshore area      304

Division 3—Variation of petroleum access authorities                          306

246........ Variation of petroleum access authority.......................................... 306

247........ Consultation—variation of petroleum access authority in same offshore area          306

248........ Consultation—approval of variation of petroleum access authority in adjoining offshore area                307

Division 4—Reporting obligations of holders of petroleum access authorities 309

249........ Reporting obligations of holders of petroleum access authorities.... 309

Division 5—Revocation of petroleum access authorities                      310

250........ Revocation of petroleum access authority....................................... 310

Part 2.9—Petroleum scientific investigation consents                                  311

251........ Simplified outline............................................................................ 311

252........ Rights conferred by petroleum scientific investigation consent....... 311

253........ Conditions of petroleum scientific investigation consents............... 311

254........ Grant of petroleum scientific investigation consent......................... 311

Part 2.10—Standard procedures                                                                              313

255........ Application and cash bid to be made in an approved manner.......... 313

256........ Application fee................................................................................ 313

257........ Application may set out additional matters...................................... 314

258........ Titles Administrator may require further information...................... 315

259........ Offer documents............................................................................. 317

260........ Acceptance of offer—request by applicant...................................... 319

260A..... Cash‑bid petroleum exploration permits—failure to respond to offer 323

261........ Special petroleum exploration permits and s 181 petroleum production licences—failure to pay             325

262........ Consultation—adverse decisions.................................................... 325

263........ Responsible Commonwealth Minister may require information about negotiations for a designated agreement      327

Part 2.11—Variation, suspension and exemption                                          329

Division 1—Variation, suspension and exemption decisions relating to petroleum exploration permits, petroleum retention leases, petroleum production licences, infrastructure licences and pipeline licences                                                                                 329

264........ Variation, suspension and exemption—conditions of titles............. 329

265........ Extension of term of petroleum exploration permit or petroleum retention lease—suspension or exemption           331

266........ Suspension of rights—petroleum exploration permit or petroleum retention lease   332

267........ Extension of term of petroleum exploration permit or petroleum retention lease—suspension of rights  333

Division 2—Variation, suspension and exemption decisions relating to petroleum special prospecting authorities and petroleum access authorities                    334

268........ Variation, suspension and exemption—conditions of petroleum special prospecting authorities and petroleum access authorities........................................................................................ 334

Part 2.12—Surrender of titles                                                                                    336

Division 1—Surrender of petroleum exploration permits, petroleum production licences, petroleum retention leases, infrastructure licences and pipeline licences          336

269........ Application for consent to surrender title........................................ 336

270........ Consent to surrender title................................................................ 336

271........ Surrender of title............................................................................. 340

Division 2—Surrender of petroleum special prospecting authorities and petroleum access authorities                                                                                                                    341

272........ Surrender of petroleum special prospecting authority..................... 341

273........ Surrender of petroleum access authority......................................... 341

Part 2.13—Cancellation of titles                                                                                342

Division 1—Cancellation of petroleum exploration permits, petroleum production licences, petroleum retention leases, infrastructure licences and pipeline licences          342

274........ Grounds for cancellation of title...................................................... 342

275........ Cancellation of title.......................................................................... 343

276........ Consultation.................................................................................... 343

277........ Cancellation of title not affected by other provisions....................... 344

277A..... NOPSEMA to notify the Titles Administrator of grounds for cancellation of title   346

Division 2—Cancellation of petroleum special prospecting authorities                348

278........ Cancellation of petroleum special prospecting authority.................. 348

Part 2.14—Other provisions                                                                                        349

279........ Reservation of blocks...................................................................... 349

280........ Interference with other rights.......................................................... 350

281........ No conditions about payment of money.......................................... 351

282........ Certain portions of blocks to be blocks........................................... 351

283........ Changes to the boundary of the coastal waters of a State or Territory 353

284........ Notification of discovery of petroleum in petroleum exploration permit area, petroleum retention lease area or petroleum production licence area.................................................................... 355

285........ Property in petroleum not recovered from a Greater Sunrise unit reservoir              356

286........ Property in petroleum recovered from a Greater Sunrise unit reservoir 356

286A..... Notification requirements—registered holders of titles................... 358

286B..... Publication of prescribed time limits............................................... 361

286C..... Report about decisions not made within time limits........................ 361

Chapter 3—Regulation of activities relating to injection and storage of greenhouse gas substances                                                                                          362

Part 3.1—Introduction                                                                                                    362

287........ Simplified outline............................................................................ 362

Part 3.2—Greenhouse gas assessment permits                                                364

Division 1—General provisions                                                                          364

288........ Simplified outline............................................................................ 364

289........ Prohibition of unauthorised exploration for potential greenhouse gas storage formation, or potential greenhouse gas injection site, in offshore area.......................................................... 365

290........ Rights conferred by greenhouse gas assessment permit.................. 365

291........ Conditions of greenhouse gas assessment permits.......................... 367

292........ Approval by responsible Commonwealth Minister of key greenhouse gas operations            368

293........ Duration of greenhouse gas assessment permit............................... 372

294........ Extension of greenhouse gas assessment permit if permittee applies for a declaration of an identified greenhouse gas storage formation............................................................................ 373

295........ Extension of greenhouse gas assessment permit if permittee applies for a greenhouse gas holding lease or greenhouse gas injection licence......................................................................... 374

Division 2—Obtaining a work‑bid greenhouse gas assessment permit  376

296........ Application for work‑bid greenhouse gas assessment permit—advertising of blocks              376

297........ Petroleum retention lessee or petroleum production licensee to be notified of proposal to advertise blocks             377

298........ Grant of work‑bid greenhouse gas assessment permit—offer document 378

299........ Ranking of multiple applicants for work‑bid greenhouse gas assessment permit     379

300........ Grant of work‑bid greenhouse gas assessment permit.................... 381

301........ Withdrawal of application............................................................... 382

302........ Effect of withdrawal or lapse of application.................................... 383

Division 3—Obtaining a cash‑bid greenhouse gas assessment permit 385

303........ Application for cash‑bid greenhouse gas assessment permit........... 385

304........ Petroleum retention lessee or petroleum production licensee to be notified of proposal to advertise blocks             386

305........ Grant of cash‑bid greenhouse gas assessment permit—only one application           387

306........ Grant of cash‑bid greenhouse gas assessment permit—2 or more applications        388

307........ Grant of cash‑bid greenhouse gas assessment permit..................... 390

Division 4—Renewal of greenhouse gas assessment permits              392

308........ Application for renewal of greenhouse gas assessment permit....... 392

309........ Renewal of greenhouse gas assessment permit—offer document... 393

310........ Refusal to renew greenhouse gas assessment permit...................... 396

311........ Renewal of greenhouse gas assessment permit............................... 397

Division 5—Declaration of identified greenhouse gas storage formation            399

312........ Declaration of identified greenhouse gas storage formation............ 399

313........ Variation of declaration of identified greenhouse gas storage formation  402

314........ Revocation of declaration of identified greenhouse gas storage formation               404

315........ Register of Identified Greenhouse Gas Storage Formations........... 405

Division 6—Directions                                                                                             406

316........ Responsible Commonwealth Minister may give directions to greenhouse gas assessment permittees     406

317........ Compliance with directions............................................................. 407

Part 3.3—Greenhouse gas holding leases                                                            408

Division 1—General provisions                                                                          408

318........ Simplified outline............................................................................ 408

319........ Rights conferred by greenhouse gas holding lease.......................... 409

320........ Conditions of greenhouse gas holding leases.................................. 410

321........ Approval by responsible Commonwealth Minister of key greenhouse gas operations            411

322........ Duration of greenhouse gas holding lease....................................... 415

323........ Extension of greenhouse gas holding lease if lessee applies for a special greenhouse gas holding lease or greenhouse gas injection licence............................................................................... 416

Division 2—Obtaining a greenhouse gas holding lease                          418

Subdivision A—Application for greenhouse gas holding lease by the holder of a greenhouse gas assessment permit                                                                                                       418

324........ Application for greenhouse gas holding lease by the holder of a greenhouse gas assessment permit       418

325........ Grant of greenhouse gas holding lease—offer document................ 421

326........ Refusal to grant greenhouse gas holding lease................................ 423

327........ Grant of greenhouse gas holding lease............................................ 423

328........ Greenhouse gas assessment permit ceases to be in force when greenhouse gas holding lease comes into force      424

329........ Greenhouse gas assessment permit transferred—transferee to be treated as applicant              424

Subdivision B—Application for greenhouse gas holding lease by the holder of a greenhouse gas injection licence                                                                                                       425

330........ Application for greenhouse gas holding lease by the holder of a greenhouse gas injection licence          425

331........ Grant of greenhouse gas holding lease—offer document................ 426

332........ Refusal to grant greenhouse gas holding lease................................ 427

333........ Grant of greenhouse gas holding lease............................................ 427

334........ Greenhouse gas injection licence ceases to be in force when greenhouse gas holding lease comes into force          428

335........ Greenhouse gas injection licence transferred—transferee to be treated as applicant 428

Subdivision C—Application for special greenhouse gas holding lease by an unsuccessful applicant for a greenhouse gas injection licence                                                                 429

336........ Application for special greenhouse gas holding lease by an unsuccessful applicant for a greenhouse gas injection licence........................................................................................................ 429

337........ Grant of special greenhouse gas holding lease—offer document.... 430

338........ Grant of special greenhouse gas holding lease................................ 431

339........ Greenhouse gas assessment permit ceases to be in force when special greenhouse gas holding lease comes into force........................................................................................................ 432

340........ Ordinary greenhouse gas holding lease ceases to be in force when special greenhouse gas holding lease comes into force........................................................................................................ 432

341........ Greenhouse gas assessment permit transfer—transferee to be treated as applicant   432

342........ Greenhouse gas holding lease transfer—transferee to be treated as applicant           433

Subdivision D—Application for greenhouse gas holding lease by the holder of a petroleum retention lease        433

343........ Application for greenhouse gas holding lease by the holder of a petroleum retention lease      433

344........ Grant of greenhouse gas holding lease—offer document................ 436

345........ Grant of greenhouse gas holding lease............................................ 437

346........ Petroleum retention lease transfer—transferee to be treated as applicant  438

Division 3—Renewal of greenhouse gas holding leases                         439

347........ Application for renewal of greenhouse gas holding lease............... 439

348........ Renewal of greenhouse gas holding lease—offer document........... 440

349........ Refusal to renew greenhouse gas holding lease.............................. 442

350........ Renewal of greenhouse gas holding lease....................................... 444

Division 4—Directions                                                                                             445

351........ Responsible Commonwealth Minister may give directions to greenhouse gas holding lessees                445

352........ Compliance with directions............................................................. 446

Division 5—Special greenhouse gas holding lessee may be requested to apply for a greenhouse gas injection licence                                                                                 447

353........ Responsible Commonwealth Minister may request special greenhouse gas holding lessee to apply for a greenhouse gas injection licence............................................................................... 447

Division 6—Cancellation of certain greenhouse gas holding leases granted to the holders of petroleum retention leases                                                                                  448

354........ Cancellation of certain greenhouse gas holding leases granted to the holders of petroleum retention leases             448

Part 3.4—Greenhouse gas injection licences                                                     449

Division 1—General provisions                                                                          449

355........ Simplified outline............................................................................ 449

356........ Prohibition of unauthorised injection and storage of substances in offshore area     450

357........ Rights conferred by greenhouse gas injection licence..................... 450

358........ Conditions of greenhouse gas injection licences............................. 452

359........ Duration of greenhouse gas injection licence.................................. 456

360........ Termination of greenhouse gas injection licence if no injection operations for 5 years             456

Division 2—Obtaining a greenhouse gas injection licence                   459

Subdivision A—Application for greenhouse gas injection licence by the holder of a greenhouse gas assessment permit or greenhouse gas holding lease                              459

361........ Application for greenhouse gas injection licence by greenhouse gas assessment permittee or greenhouse gas holding lessee............................................................................................... 459

362........ Offer document............................................................................... 462

363........ Refusal to grant greenhouse gas injection licence............................ 470

364........ Grant of greenhouse gas injection licence....................................... 471

365........ Deferral of decision to grant greenhouse gas injection licence—pending application for post‑commencement petroleum exploration permit........................................................................... 471

366........ Greenhouse gas assessment permit or greenhouse gas holding lease ceases to be in force when greenhouse gas injection licence comes into force.................................................................. 472

367........ Greenhouse gas assessment permit transfer—transferee to be treated as applicant   472

368........ Greenhouse gas holding lease transfer—transferee to be treated as applicant           473

Subdivision B—Application for greenhouse gas injection licence by the holder of a petroleum production licence                                                                                                       474

369........ Application for greenhouse gas injection licence by the holder of a petroleum production licence           474

370........ Grant of greenhouse gas injection licence—offer document........... 478

371........ Refusal to grant greenhouse gas injection licence............................ 481

372........ Grant of greenhouse gas injection licence....................................... 481

373........ Petroleum production licence transferred—transferee to be treated as applicant       482

Division 3—Variations                                                                                             483

374........ Variation of matters specified in greenhouse gas injection licence—general            483

375........ Variation of matters specified in greenhouse gas injection licence—declaration of identified greenhouse gas storage formation varied.............................................................................. 484

Division 4—Directions                                                                                             486

376........ Responsible Commonwealth Minister may give greenhouse gas injection licensee directions to protect geological formations containing petroleum pools etc...................................... 486

377........ Consultation—directions to do something outside the licence area. 488

378........ Compliance with directions............................................................. 490

Division 5—Dealing with serious situations                                                  491

379........ Serious situation.............................................................................. 491

380........ Powers of responsible Commonwealth Minister to deal with serious situations      493

381........ Consultation—directions to do something outside the licence area. 496

382........ Compliance with directions............................................................. 497

Division 6—Protection of petroleum discovered in the title area of a pre‑commencement petroleum title                                                                                                                    498

383........ Powers of responsible Commonwealth Minister to protect petroleum discovered in the title area of a pre‑commencement petroleum title.................................................................................. 498

384........ Consultation—directions to do something outside the licence area. 503

385........ Compliance with directions............................................................. 505

Division 7—Site closing certificates                                                                  506

386........ Application for site closing certificate............................................. 506

387........ Variation of application for site closing certificate........................... 509

388........ Issue of site closing certificate—pre‑certificate notice..................... 510

389........ Acknowledgement of receipt of application for site closing certificate 513

390........ Refusal to give pre‑certificate notice................................................ 513

391........ Pre‑certificate notice—security etc.................................................. 513

392........ Issue of site closing certificate......................................................... 514

393........ Greenhouse gas injection licence transferred—transferee to be treated as applicant 515

394........ Duration of site closing certificate................................................... 515

395........ Transfer of site closing certificate.................................................... 516

396........ Transfer of securities....................................................................... 516

397........ Discharge of securities.................................................................... 516

398........ Recovery of the Commonwealth’s costs and expenses................... 516

Division 8—Long‑term liabilities                                                                        518

399........ Closure assurance period................................................................ 518

400........ Indemnity—long‑term liability........................................................ 519

401........ Commonwealth to assume long‑term liability if licensee has ceased to exist            520

Part 3.5—Greenhouse gas search authorities                                                   521

Division 1—General provisions                                                                          521

402........ Simplified outline............................................................................ 521

403........ Rights conferred by greenhouse gas search authority..................... 522

404........ Conditions of greenhouse gas search authorities............................. 522

405........ Duration of greenhouse gas search authority.................................. 522

406........ Greenhouse gas search authority cannot be transferred................... 523

Division 2—Obtaining a greenhouse gas search authority                  524

407........ Application for greenhouse gas search authority............................. 524

408........ Grant or refusal of greenhouse gas search authority....................... 524

409........ Holders to be informed of the grant of another greenhouse gas search authority     525

410........ Holders to be informed of the grant of a petroleum special prospecting authority    525

Part 3.6—Greenhouse gas special authorities                                                   527

Division 1—General provisions                                                                          527

411........ Simplified outline............................................................................ 527

412........ Rights conferred by greenhouse gas special authority..................... 527

413........ Conditions of greenhouse gas special authorities............................ 527

414........ Duration of greenhouse gas special authority.................................. 528

Division 2—Obtaining a greenhouse gas special authority                  529

415........ Application for greenhouse gas special authority............................ 529

416........ Grant or refusal of greenhouse gas special authority....................... 530

417........ Consultation—grant of greenhouse gas special authority................ 531

Division 3—Variation of greenhouse gas special authorities              533

418........ Variation of greenhouse gas special authority................................. 533

419........ Consultation—variation of greenhouse gas special authority.......... 533

Division 4—Reporting obligations of holders of greenhouse gas special authorities     535

420........ Reporting obligations of holders of greenhouse gas special authorities 535

Division 5—Revocation of greenhouse gas special authorities          536

421........ Revocation of greenhouse gas special authority.............................. 536

Part 3.7—Greenhouse gas research consents                                                   537

422........ Simplified outline............................................................................ 537

423........ Rights conferred by greenhouse gas research consent.................... 537

424........ Conditions of greenhouse gas research consents............................ 538

425........ Grant of greenhouse gas research consent...................................... 538

Part 3.8—Standard procedures                                                                                539

426........ Application to be made in an approved manner............................... 539

427........ Application fee................................................................................ 539

428........ Application may set out additional matters...................................... 540

429........ Responsible Commonwealth Minister may require further information 541

430........ Offer documents............................................................................. 542

431........ Acceptance of offer—request by applicant...................................... 543

432........ Acceptance of offer—payment........................................................ 546

433........ Acceptance of offer—lodgment of security..................................... 546

434........ Consultation—adverse decisions.................................................... 547

435........ Responsible Commonwealth Minister may require information about negotiations for a designated agreement      548

Part 3.9—Variation, suspension and exemption                                             550

Division 1—Variation, suspension and exemption decisions relating to greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences       550

436........ Variation, suspension and exemption—conditions of titles............. 550

437........ Extension of term of greenhouse gas assessment permit or greenhouse gas holding lease—suspension or exemption........................................................................................................ 552

438........ Suspension of rights—greenhouse gas assessment permit or greenhouse gas holding lease   553

439........ Extension of term of greenhouse gas assessment permit or greenhouse gas holding lease—suspension of rights   554

Division 2—Variation, suspension and exemption decisions relating to greenhouse gas search authorities and greenhouse gas special authorities                                 555

440........ Variation, suspension and exemption—conditions of greenhouse gas search authorities and greenhouse gas special authorities........................................................................................ 555

Part 3.10—Surrender of titles                                                                                    557

Division 1—Surrender of greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences                                             557

441........ Application for consent to surrender title........................................ 557

442........ Consent to surrender title................................................................ 557

443........ Surrender of title............................................................................. 561

Division 2—Surrender of greenhouse gas search authorities and greenhouse gas special authorities                                                                                                                    563

444........ Surrender of greenhouse gas search authority................................. 563

445........ Surrender of greenhouse gas special authority................................ 563

Part 3.11—Cancellation of titles                                                                                564

Division 1—Cancellation of greenhouse gas assessment permits, greenhouse gas holding leases and greenhouse gas injection licences                                             564

446........ Grounds for cancellation of title...................................................... 564

447........ Cancellation of title.......................................................................... 565

448........ Consultation.................................................................................... 566

449........ Cancellation of title not affected by other provisions....................... 566

Division 2—Cancellation of greenhouse gas search authorities        569

450........ Cancellation of greenhouse gas search authority............................. 569

Part 3.12—Other provisions                                                                                        570

451........ Notification of eligible greenhouse gas storage formation............... 570

452........ Notification of discovery of petroleum in greenhouse gas assessment permit area etc.            571

453........ Disposing of waste or other matter................................................. 572

454........ Additional securities etc.................................................................. 573

455........ Transfer of securities....................................................................... 575

456........ Discharge of securities.................................................................... 575

457........ Approved site plans........................................................................ 575

458........ Co‑existence of greenhouse gas titles and petroleum titles.............. 577

459........ Reservation of blocks...................................................................... 578

460........ Interference with other rights.......................................................... 579

461........ No conditions about payment of money.......................................... 580

462........ Certain portions of blocks to be blocks........................................... 580

463........ Changes to the boundary of the coastal waters of a State or Territory 582

464........ Commonwealth may monitor the behaviour of a greenhouse gas substance stored in a part of a geological formation........................................................................................................ 583

465........ Monitoring information may be made publicly available................. 584


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

                   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 the responsibility of the Joint Authority for the State. The Joint Authority for a State (other than Tasmania) is constituted by the responsible State Minister and the responsible Commonwealth Minister. The Joint Authority for Tasmania is constituted by the responsible Commonwealth Minister.

•      Generally, the administration of this Act in relation to the Principal Northern Territory offshore area is the responsibility of the Joint Authority for that area (the Joint Authority is constituted by the responsible Northern Territory Minister and the responsible Commonwealth Minister).

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

•      The National Offshore Petroleum Safety and Environmental Management Authority is responsible for the administration of:

               (a)     occupational health and safety provisions; and

              (b)     structural integrity provisions; and

               (c)     environmental management provisions.

•      The National Offshore Petroleum Titles Administrator is responsible for:

               (a)     assisting and advising the Joint Authority and the responsible Commonwealth Minister; and

              (b)     keeping registers of titles; and

               (c)     data and information management.

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:

Description: offshore maps 1 new

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:

Description: offshore maps 2 new

Map 3

             (5)  Map 3 zooms in and illustrates coastal waters and waters within the limits of South Australia:

Description: seasact03m3v3a

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:

applied provisions has the meaning given by subsection 80(2).

approved:

                     (a)  when used in Chapter 3—means approved in writing by the responsible Commonwealth Minister; or

                     (b)  in any other case—means approved in writing by the Titles Administrator.

This definition does not apply to:

                     (c)  the expression approved site plan; or

                     (d)  section 286A; or

                     (e)  section 650; or

                      (f)  subsection 695B(3); or

                     (g)  section 695F.

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).

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.

Commissioner means a person appointed under section 780A.

Commission of inquiry means an inquiry conducted, or to be conducted, by a person appointed under section 780A.

constitutional corporation means a corporation to which paragraph 51(xx) of the Constitution applies.

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.

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:

                     (a)  means a person who, at any time before the commencement of Part 6.10, was a Designated Authority (within the meaning of this Act); and

                     (b)  when used in the expression the Designated Authority, means a person who, at any time before the commencement of Part 6.10, was the Designated Authority (within the meaning of this Act) 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 website (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.

Ministers responsible for mineral and energy resources matters means a group of Ministers established or recognised by the Council of Australian Governments whose members include Commonwealth, State, Territory and New Zealand Ministers with responsibility for energy and resource matters.

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.

NOPSEMA means the National Offshore Petroleum Safety and Environmental Management Authority.

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.

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.

Regulatory Levies Act means the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003.

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, and exercise the powers, of a member of the Joint Authority for the Northern Territory 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)  whichever of the following applies:

                              (i)  the Minister of the State (other than Tasmania) who is authorised under a law of the State to perform the functions, and exercise the powers, of a member of the Joint Authority for the State under this Act;

                             (ii)  the Minister of Tasmania who is responsible for the State PSLA for Tasmania, within the meaning of Part 6.9 (see section 643); or

                     (b)  another Minister of the State acting for and on behalf of the Minister referred to in paragraph (a).

Royal Commission has the same meaning as in the Royal Commissions Act 1902.

Royalty Act means the Offshore Petroleum (Royalty) Act 2006.

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.

Secretary means the Secretary of the Department.

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.

structural integrity includes the following:

                     (a)  structural soundness;

                     (b)  structural strength;

                     (c)  stability;

                     (d)  fitness for purpose;

                     (e)  mechanical integrity;

                      (f)  systems integrity;

in connection with:

                     (g)  the containment of:

                              (i)  petroleum; or

                             (ii)  a greenhouse gas substance; or

                            (iii)  any other substance; or

                     (h)  the health and safety of persons engaged in:

                              (i)  offshore petroleum operations (within the meaning of Part 6.9); or

                             (ii)  offshore greenhouse gas operations (within the meaning of Part 6.9).

For the purposes of paragraph (f), systems integrity includes the integrity of the following:

                      (i)  electrical systems;

                      (j)  electronic systems;

                     (k)  hydraulic systems;

                      (l)  chemical systems;

                    (m)  dynamic positioning systems;

                     (n)  other systems.

structural integrity law means the provisions of this Act or the regulations to the extent to which the provisions relate to the structural integrity of:

                     (a)  facilities (within the meaning of Schedule 3); or

                     (b)  wells; or

                     (c)  well‑related equipment.

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 website (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

                     (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

                    (ga)  when used in Chapter 5—has the meaning given by section 519; or

                     (h)  when used in section 574—has the meaning given by subsection 574(1); or

                   (ha)  when used in section 574A—has the meaning given by subsection 574A(1); or

                      (i)  when used in Division 2A of Part 6.2—has the meaning given by subsection 576A(3); 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

                   (ba)  when used in Division 2A of Part 6.2—has the meaning given by subsection 576A(3); or

                     (c)  when used in section 586—has the meaning given by subsection 586(6); or

                     (d)  when used in section 586A—has the meaning given by subsection 586A(7).

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).

Titles Administrator means the National Offshore Petroleum Titles Administrator.

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.

well‑related equipment means any:

                     (a)  plant; or

                     (b)  equipment; or

                     (c)  other thing;

for containing pressure in a well.

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 Titles Administrator 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.

          (7A)  In making an estimate under paragraph (6)(e) or (7)(f), disregard subsection 388(8).

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 in his or her capacity as, or as a member of, the Joint 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:

Description: map5_20nov2greys

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

a greenhouse gas assessment permit

the permit area of a greenhouse gas assessment permit granted after the changeover time

9

a greenhouse gas holding lease

the lease area of a greenhouse gas holding lease granted after the changeover time

10

a greenhouse gas injection licence

the licence area of a greenhouse gas injection licence granted after the changeover time

11

a greenhouse gas search authority

the authority area of a greenhouse gas search authority granted after the changeover time

12

a greenhouse gas special authority

the authority area of a greenhouse gas special authority granted after the changeover time

13

any other instrument under this Act

a point, line or area set out in any other instrument made under this Act made after the changeover time

Note 1:       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.

Note 2:       A grant of a greenhouse gas holding lease 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

a greenhouse gas assessment permit

the permit area of a greenhouse gas assessment permit that was in force immediately before the changeover time

9

a greenhouse gas holding lease

the lease area of a greenhouse gas holding lease that was in force immediately before the changeover time

10

a greenhouse gas injection licence

the licence area of a greenhouse gas injection licence that was in force immediately before the changeover time

11

a greenhouse gas search authority

the authority area of a greenhouse gas search authority that was in force immediately before the changeover time

12

a greenhouse gas special authority

the authority area of a greenhouse gas special authority that was in force immediately before the changeover time

13

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

Petroleum titles and instruments

             (1)  The table has effect:

 

Variation of titles and instruments

Item

The Titles Administrator may 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 petroleum 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.

Greenhouse gas titles and instruments

             (2)  The table has effect:

 

Variation of titles and instruments

Item

The responsible Commonwealth Minister may issue an instrument varying...

for the sole purpose of...

1

a greenhouse gas assessment permit that was in force immediately before the changeover time

relabelling the permit area using geographic coordinates based on the current datum.

2

a greenhouse gas holding lease that was in force immediately before the changeover time

relabelling the lease area using geographic coordinates based on the current datum.

3

a greenhouse gas injection licence that was in force immediately before the changeover time

relabelling the licence area using geographic coordinates based on the current datum.

4

a greenhouse gas search authority that was in force immediately before the changeover time

relabelling the authority area using geographic coordinates based on the current datum.

5

a greenhouse gas special authority that was in force immediately before the changeover time

relabelling the authority area using geographic coordinates based on the current datum.

6

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.

7

a greenhouse gas 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

Petroleum titles

             (1)  The Titles Administrator may issue an instrument varying an application for a petroleum title for the sole purpose of relabelling a point, line or area by reference to geographic coordinates based on the current datum.

Greenhouse gas titles

             (2)  The responsible Commonwealth Minister may issue an instrument varying an application for a greenhouse gas 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 Ter ritory) 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

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 (other than Tasmania) 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.

          (2A)  The responsible Commonwealth Minister is the Joint Authority for the offshore area of Tasmania. That Joint Authority is to be known as the Commonwealth‑Tasmania 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. That Joint Authority 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 such a Joint Authority 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 or the regulations confer 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 or the regulations confer 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 or the regulations confer on a Joint Authority.

58  Procedure of Joint Authority

             (1)  A Joint Authority for a State (other than Tasmania) 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 (other than Tasmania) 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 (other than Tasmania) 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 Titles Administrator must cause to be kept written records of the decisions of a Joint Authority.

             (2)  A record kept under subsection (1) in relation to the Joint Authority for a State (other than Tasmania) or the Northern Territory 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.

          (2A)  A record kept under subsection (1) in relation to the Joint Authority for:

                    (aa)  Tasmania; or

                     (a)  the Eastern Greater Sunrise Offshore area; or

                     (b)  an external Territory;

is prima facie evidence that the decision was duly made as recorded if the record is signed by a person who was 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 Titles Administrator on behalf of a Joint Authority, 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 a Joint Authority are to be made through the Titles Administrator.

64  Judicial notice of signature of member of a Joint Authority

Joint Authority for a State (other than Tasmania) 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 (other than Tasmania) or the Northern Territory; or

                             (ii)  a delegate of the Joint Authority for a State (other than Tasmania) 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 Tasmania

          (1A)  All courts must take judicial notice of:

                     (a)  the signature of a person who is, or has been:

                              (i)  the Joint Authority for Tasmania; or

                             (ii)  a delegate of the Joint Authority for Tasmania; and

                     (b)  the fact that the person is, or was at a particular time:

                              (i)  the Joint Authority for Tasmania; or

                             (ii)  a delegate of the Joint Authority for Tasmania.

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 to:

                     (a)  execute or issue an instrument; or

                     (b)  give a notice; or

                     (c)  communicate a matter;

the Titles Administrator 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 Titles Administrator 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 Titles Administrator 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 Titles Administrator 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 (other than Tasmania) or the Northern Territory

             (1)  A Joint Authority for a State (other than Tasmania) 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 the relevant State, or of the Northern Territory, as the case requires.

Note:          The expressions APS employee, SES employee and acting SES employee are defined in section 2B 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.

66A  Delegation by Joint Authority for Tasmania

             (1)  The Joint Authority for Tasmania 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 2B of the Acts Interpretation Act 1901.

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 2B 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 2B 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 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 Public Governance, Performance and Accountability Act 2013;

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.

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 Joint 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 Joint 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 Titles Administrator 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 Titles Administrator 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  Cash‑bid petroleum exploration permit—application

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 by way of cash bidding 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 under section 111 whether to invite the applicant to make a cash bid.

Reserve price

          (3A)  Before publishing a notice under subsection (1), the Joint Authority must, in writing, determine a reserve price for the grant of the permit.

          (3B)  A notice under subsection (1) may specify the reserve price so determined, but does not need to do so.

          (3C)  A determination under subsection (3A) is not a legislative instrument.

More than one block

             (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 be accompanied by details of:

                     (a)  the technical qualifications of the applicant and of the applicant’s employees; and

                     (b)  the technical advice available to the applicant; and

                     (c)  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 Titles Administrator to require the applicant to give further information.

111  Cash‑bid petroleum exploration permit—cash bids

Invitations to make a cash bid

             (1)  For each application for a cash‑bid petroleum exploration permit in accordance with a notice under subsection 110(1), the Joint Authority must, taking into account the matters specified in the notice under paragraph 110(3)(c), by written notice to each applicant:

                     (a)  invite the applicant (an eligible applicant) to make a cash bid for the grant of the permit within a period stated in the invitation; or

                     (b)  reject the application.

How to make a cash bid

             (2)  An eligible applicant may make a single cash bid in response to the invitation under subsection (1) by written notice to the Joint Authority:

                     (a)  given within the period stated in the invitation; and

                     (b)  specifying an amount (the cash bid) the applicant would be prepared to pay for the grant of a permit; and

                     (c)  accompanied by a deposit of 10% of the cash bid.

Note 1:       A cash bid must be made in an approved manner (see section 255).

Note 2:       The Joint Authority can only make an offer of the grant of a permit to an applicant at a price that is equal to or higher than the reserve price (see sections 112 and 112A). The reserve price may be specified in the notice under subsection 110(1), but it need not be (see subsection 110(3B)).

             (3)  A deposit accompanying a notice under subsection (2) is taken to be paid to the Titles Administrator on behalf of the Commonwealth.

Lapsed applications

             (4)  If an eligible applicant does not respond to the invitation in accordance with subsection (2), the application lapses.

112  Cash‑bid petroleum exploration permit—cash bids less than the reserve price

Scope

             (1)  This section applies to an eligible applicant for the grant of a cash‑bid petroleum exploration whose cash bid under section 111 is less than the reserve price determined under section 110 for the grant of the permit.

Note:          The reserve price may be specified in the notice under subsection 110(1) in relation to the grant of the permit, but it need not be (see subsection 110(3B)).

Rejection of applications generally

             (2)  The Joint Authority must reject the application by written notice to the applicant unless:

                     (a)  the reserve price is not specified in the notice under subsection 110(1); and

                     (b)  the applicant’s cash bid is:

                              (i)  the only cash bid, or the highest cash bid, for the grant of the permit that is less than the reserve price; or

                             (ii)  equal to one or more other cash bids which are the only cash bids, or the highest cash bids, for the grant of the permit that are less than the reserve price.

Note:          Applications to which paragraphs (a) and (b) apply may be rejected under subsection (3) of this section, or following the grant of the permit to another applicant under section 113. They may also lapse under section 260A if the applicant fails to respond to an offer made under subsection (3) of this section.

Offer of grant of permit at reserve price

             (3)  The following table applies if:

                     (a)  the reserve price is not specified in the notice under subsection 110(1); and

                     (b)  the only cash bids for the grant of the permit made under section 111 are less than the reserve price.

 

Offer of grant of permit at reserve price

Item

If …

then …

1

the applicant’s cash bid is:

(a) the only cash bid; or

(b) the single highest cash bid

the Joint Authority must:

(a) give a written notice (called an offer document) to the applicant telling the applicant that the Joint Authority is prepared to grant the permit to the applicant for a specified permit price that is equal to the reserve price; or

(b) reject the application by written notice to the applicant.

2

2 or more applicants (tied applicants) make cash bids that are:

(a) equal to each other’s cash bids; and

(b) either the only cash bids, or higher than all the other cash bids

the Joint Authority must:

(a) give an offer document to the tied applicant whose cash bid was received earliest telling that tied applicant that the Joint Authority is prepared to grant the permit to the tied applicant for a specified permit price that is equal to the reserve price; or

(b) reject the application, and those of all the other tied applicants, by written notice to each tied 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 an applicant breaches a requirement under section 258 to provide further information, the Joint Authority may refuse to give the applicant an offer document.

             (4)  In considering whether to give an offer document to an applicant under subsection (3), the Joint Authority must have regard to the difference between the applicant’s cash bid and the reserve price.

Refund of deposit to rejected applicants

             (5)  If the Joint Authority rejects an application under this section, the Titles Administrator, on behalf of the Commonwealth, must refund to the applicant an amount equal to the applicant’s deposit under section 111.

112A  Cash‑bid petroleum exploration permit—highest cash bids at or over the reserve price

Scope

             (1)  This section applies in relation to a cash bid (a qualifying cash bid) under section 111 by an eligible applicant for the grant of a cash‑bid petroleum exploration permit that is equal to or higher than the reserve price determined under section 110.

Issue of offer documents etc.

             (2)  The following table sets out the circumstances in which the Joint Authority must give an offer document, or an invitation to make a tie‑breaking cash bid, to an eligible applicant who makes a qualifying cash bid.

 

Issue of offer documents or tie‑breaking invitations

Item

If …

the Joint Authority must …

1

the applicant’s cash bid is:

(a) the only qualifying cash bid; or

(b) the single highest qualifying cash bid

give a written notice (called an offer document) to the applicant telling the applicant that the Joint Authority is prepared to grant the permit to the applicant.

2

2 or more eligible applicants (tied applicants) make qualifying cash bids that are:

(a) equal to each other’s cash bids; and

(b) either the only qualifying cash bids, or higher than all the other qualifying cash bids

invite each tied applicant, by written notice (a tie‑breaking invitation), to make a higher cash bid within a period stated in the tie‑breaking invitation.

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.

112B  Cash‑bid petroleum exploration permit—tie‑breaking invitation

Scope

             (1)  This section applies if the Joint Authority, under section 112A, makes a tie‑breaking invitation to 2 or more tied applicants for the grant of a cash‑bid petroleum exploration permit.

Responses to the tie‑breaking invitation

             (2)  Before the end of the period stated in the tie‑breaking invitation, a tied applicant may, by written notice to the Joint Authority, make a further cash bid (a tie‑breaking cash bid) higher than the applicant’s previous cash bid.

Note:          A tie‑breaking cash bid must be made in an approved manner (see section 255).

             (3)  The following table sets out the process for dealing with responses (if any) to the tie‑breaking invitation.

 

Responses to the tie‑breaking invitation

Item

If …

then …

1

a tied applicant makes a tie‑breaking cash bid within the period stated in the tie‑breaking invitation that is:

(a) the only tie‑breaking cash bid; or

(b) the single highest tie‑breaking cash bid

the Joint Authority must give a written notice (called an offer document) to that tied applicant telling the applicant that the Joint Authority is prepared to grant the permit to the applicant.

2

there are 2 or more tie‑breaking cash bids by applicants (further‑tie applicants) made within the period stated in the tie‑breaking invitation that are:

(a) equal to each other; and

(b) either the only tie‑breaking cash bids, or higher than all the other tie‑breaking cash bids

the Joint Authority must give an offer document to the further‑tie applicant whose tie‑breaking cash bid was received earliest.

3

none of the tied applicants makes a tie‑breaking cash bid within the period stated in the tie‑breaking invitation

the Joint Authority must give an offer document to the tied applicant whose cash bid under section 111 was received earliest.

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.

113  Cash‑bid petroleum exploration permit—grant

             (1)  If:

                     (a)  an applicant has been given an offer document under section 112, 112A or 112B; 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, within the applicable period under section 260, paid to the Titles Administrator, on behalf of the Commonwealth, the amount specified in the offer document as the balance of the permit price;

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)  If the Joint Authority grants a petroleum exploration permit to an applicant under subsection (1):

                     (a)  the Joint Authority must reject all other applications for the permit (other than those that have already been rejected, or have lapsed), by written notice to each of those applicants (each rejected applicant); and

                     (b)  the Titles Administrator, on behalf of the Commonwealth, must refund to each rejected applicant an amount equal to the rejected applicant’s deposit under section 111.

Note 1:       An application may have already been rejected under section 111 (if the applicant is not invited to make a cash bid) or 112 (if the applicant’s cash bid is less than the reserve price).

Note 2:       An application may have already lapsed under section 111 (if the applicant fails to respond to a cash‑bid invitation) or 260A (if the applicant fails to respond to an offer).

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 Joint 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 Titles Administrator 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 Titles Administrator 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 Titles Administrator 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 Joint 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 Joint 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 Joint Authority.

130  Requirement to nominate blocks as a location

Requirement to nominate

             (1)  If:

                     (a)  the Joint 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 Joint 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 Joint Authority allows.

             (2)  The Joint 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 Joint 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 Joint Authority is of the opinion that the permittee is entitled under that section to nominate the block or blocks specified in the nomination;

the Joint 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 Joint Authority may form an opinion for the purposes of this section if the Joint Authority considers that there are reasonable grounds for doing so having regard to any information the Joint Authority has, whether given by the permittee or otherwise.

Nomination by Joint Authority

             (4)  If the Joint Authority has made a nomination under section 130, the Joint 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 a petroleum 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 Joint Authority to revoke the declaration of the location;

the Joint 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 Joint 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 Joint 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 Joint 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 Joint 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 Joint 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 Joint Authority, a petroleum pool within the location extends; or

                     (b)  by deleting from the location a block to which, in the opinion of the Joint 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 Joint Authority may vary a declaration only if:

                     (a)  the permittee requests the variation; or

                     (b)  all of the following conditions are satisfied:

                              (i)  the Joint 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 Joint Authority a submission about the proposed variation;

                            (iii)  the notice specifies a time limit for making the submission;

                            (iv)  the Joint 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 Joint Authority may form an opinion for the purposes of this section if the Joint Authority considers that there are reasonable grounds for doing so having regard to any information the Joint 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 Titles Administrator 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 Titles Administrator 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 Titles Administrator allows.

             (6)  The Titles Administrator 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 Titles Administrator 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 Titles Administrator 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 Titles Administrator 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 Titles Administrator 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 Titles Administrator allows.

             (4)  The Titles Administrator 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).

143A  Time limit for making decision about grant of petroleum retention lease

             (1)  The Joint Authority must make a decision under section 142 or 143, in relation to an application under section 141, within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (2)  If the Titles Administrator, by written notice under subsection 258(2), requires the applicant to give further information in connection with the application, the period referred to in subsection (1) of this section is extended by one day for each day during the period:

                     (a)  beginning on the day on which the notice is given; and

                     (b)  ending when the applicant gives the Titles Administrator the information.

             (3)  The Joint Authority is not required to comply with subsection (1) unless a number of days is prescribed for the purposes of subparagraph (1)(b)(ii).

             (4)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (1)(b)(i).

             (5)  A failure to comply with subsection (1) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

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 Titles Administrator 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 Titles Administrator 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.

149A  Time limit for making decision about grant of petroleum retention lease

             (1)  The Joint Authority must make a decision under section 148 or 149, in relation to an application under section 147, within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (2)  If the Titles Administrator, by written notice under subsection 258(2), requires the applicant to give further information in connection with the application, the period referred to in subsection (1) of this section is extended by one day for each day during the period:

                     (a)  beginning on the day on which the notice is given; and

                     (b)  ending when the applicant gives the Titles Administrator the information.

             (3)  The Joint Authority is not required to comply with subsection (1) unless a number of days is prescribed for the purposes of subparagraph (1)(b)(ii).

             (4)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (1)(b)(i).

             (5)  A failure to comply with subsection (1) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

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 Titles Administrator 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 Titles Administrator 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 Titles Administrator 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.

155A  Time limit for making decision about renewal of petroleum retention lease

             (1)  The Joint Authority must make a decision under section 154 or 155, in relation to an application under section 153, within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (2)  If the Titles Administrator, by written notice under subsection 258(2), requires the applicant to give further information in connection with the application, the period referred to in subsection (1) of this section is extended by one day for each day during the period:

                     (a)  beginning on the day on which the notice is given; and

                     (b)  ending when the applicant gives the Titles Administrator the information.

             (3)  The Joint Authority is not required to comply with subsection (1) unless a number of days is prescribed for the purposes of subparagraph (1)(b)(ii).

             (4)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (1)(b)(i).

             (5)  A failure to comply with subsection (1) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

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 Titles Administrator 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 Titles Administrator—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

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

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

                     (a)  give the approval; or

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

Responsible Commonwealth Minister must have regard to certain matters

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

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

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

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

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

                     (c)  an existing greenhouse gas assessment permit; or

                     (d)  an existing greenhouse gas holding lease; or

                     (e)  an existing greenhouse gas injection licence; or

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

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

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

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

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

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

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

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

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

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

the responsible Commonwealth Minister must have regard to:

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

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

             (6)  If:

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

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

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

                            that could be carried on under:

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

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

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

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

the responsible Commonwealth Minister must have regard to:

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

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

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

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

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

Responsible Commonwealth Minister must not give approval in certain circumstances

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

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

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

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

No right to an approval

           (11)  To avoid doubt, section 161 does not imply that a petroleum production licensee who applies for approval under subsection (1) of this section is entitled to be given the approval.

Suspension of rights

           (12)  For the purposes of this section, disregard a suspension of rights under section 438.

164  Declared petroleum production licences

             (1)  If:

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

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

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

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

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

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                          (viii)  a future greenhouse gas injection licence;

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

             (2)  If:

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

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

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

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

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

                            (iii)  an existing greenhouse gas assessment permit; or

                            (iv)  an existing greenhouse gas holding lease; or

                             (v)  an existing greenhouse gas injection licence; or

                            (vi)  a future greenhouse gas assessment permit; or

                           (vii)  a future greenhouse gas holding lease; or

                          (viii)  a future greenhouse gas injection licence;

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

165  Duration of petroleum production licence

             (1)  The duration of a petroleum production licence is worked out using the table:

 

Duration of petroleum production licences

Item

This kind of petroleum production licence...

remains in force...

1

an original petroleum production licence granted on or after 30 July 1998

indefinitely.

2

an original petroleum production licence granted before 30 July 1998

for the period of 21 years beginning on:

(a) the day on which the licence is granted; or

(b) if a later day is specified in the licence as the day on which the licence is to come into force—that later day.

3

a petroleum production licence granted by way of the first renewal of a petroleum production licence (other than petroleum production licence WA‑1‑L, WA‑3‑L, WA‑5‑L, WA‑6‑L, VIC/L 13, VIC/L 14, AC/L1 or AC/L2), where the original petroleum production licence was granted before 30 July 1998

for the period of 21 years beginning on:

(a) the day on which the licence is granted; or

(b) if a later day is specified in the licence as the day on which the licence is to come into force—that later day.

3A

a petroleum production licence granted by way of the first renewal of petroleum production licence WA‑1‑L, WA‑3‑L, WA‑5‑L, WA‑6‑L, VIC/L 13, VIC/L 14, AC/L1 or AC/L2

indefinitely.

4

a petroleum production licence granted by way of the second renewal of a petroleum production licence, where the original petroleum production licence was granted before 30 July 1998

indefinitely.

             (2)  Subsection (1) has effect subject to this Chapter.

             (3)  A petroleum production licence covered by item 1, 3A or 4 of the table in subsection (1) is called a life‑of‑field petroleum production licence.

             (4)  A petroleum production licence covered by item 2 or 3 of the table in subsection (1) is called a fixed‑term petroleum production licence.

Note 1:       For a special rule about the extension of the duration of licences pending decisions on renewal applications, see subsection 184(6).

Note 2:       For special rules about the duration of licences granted over individual blocks, see subsections 183(3) and (4).

Note 3:       For the revocation of an initial petroleum production licence mentioned in section 182, see subsection 183(7).

Note 4:       For a special rule about when a petroleum production licence ceases to be in force following the grant of a petroleum retention lease, see section 151.

Note 5:       For the surrender of a petroleum production licence, see Part 2.12.

Note 6:       For the cancellation of a petroleum production licence, see Part 2.13.

Note 7:       For the termination of a life‑of‑field petroleum production licence if there have been no recovery operations for 5 years, see section 166.

Note 8:       See also section 780 (compensation for acquisition of property).

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

Termination of licence

             (1)  If:

                     (a)  a petroleum production licence is a life‑of‑field petroleum production licence; and

                     (b)  no petroleum recovery operations under the licence have been carried on at any time during a continuous period of at least 5 years;

the Joint Authority may, by written notice given to the licensee, tell the licensee that the Joint Authority proposes to terminate the licence after the end of 30 days after the notice is given.

             (2)  At any time after the end of 30 days after the notice is given to the licensee, the Joint Authority may, by written notice given to the licensee, terminate the licence.

Note:          For remedial directions following termination, see section 587 or 587A.

             (3)  In working out, for the purposes of subsection (1), the period in which no petroleum recovery operations were carried on under a licence, disregard any period in which no such operations were carried on because of circumstances beyond the licensee’s control.

             (4)  For the purposes of subsection (3), the depletion of recoverable petroleum is not a circumstance beyond the licensee’s control.

Note:          See also section 780 (compensation for acquisition of property).

Consultation

             (5)  The Joint Authority may give a copy of a notice under subsection (1) to such other persons (if any) as the Joint Authority thinks fit.

             (6)  A notice under subsection (1) must:

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

                     (b)  specify a time limit for making that submission.

Note:          All communications to the Joint Authority are to be made through the Titles Administrator—see section 63.

             (7)  In deciding whether to terminate the licence, the Joint Authority must take into account any submissions made in accordance with the notice.

167  Petroleum production licences to which the Royalty Act applies

             (1)  Schedule 4 has effect.

             (2)  A reference in this Act to this Chapter includes a reference to Schedule 4.

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

168  Application for petroleum production licence by permittee

Scope

             (1)  This section applies to a petroleum exploration permit if the Royalty Act does not apply to the permit.

Note:          Schedule 4 deals with applications for petroleum production licences by the holders of petroleum exploration permits to which the Royalty Act applies.

Application

             (2)  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 Titles Administrator for the grant by the Joint Authority of a petroleum production licence over that block or over one or more of those blocks.

Note:          For application period, see section 169.

Variation of application

             (3)  At any time before an offer document relating to the application is given to the applicant, the applicant may, by written notice given to the Titles Administrator, vary the number of blocks specified in the application.

             (4)  A variation of an application must be made in an approved manner.

             (5)  A variation of an application may set out any additional matters that the applicant wishes to be considered.

Proposals for work and expenditure

             (6)  An application, or a variation of an application, under this section must be accompanied by details of the applicant’s proposals for work and expenditure in relation to the area comprised in the block or blocks covered by the application or the varied application, as the case may be.

Greater Sunrise unit reservoir petroleum production licence

             (7)  An application under this section for the grant of a Greater Sunrise unit reservoir petroleum production licence must also:

                     (a)  nominate a person to be the unit operator, as defined in the Greater Sunrise unitisation agreement; and

                     (b)  be accompanied by each Joint Venturers’ Agreement, as defined in the Greater Sunrise unitisation agreement; and

                     (c)  be accompanied by a copy of the proposed Development Plan, as defined in the Greater Sunrise unitisation agreement.

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 Titles Administrator to require the applicant to give further information.

169  Application period

             (1)  The application period for an application under section 168 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 Titles Administrator allows.

             (2)  The Titles Administrator may allow a longer period under paragraph (1)(b) only on written application made by the permittee within the period of 2 years mentioned in paragraph (1)(a).

             (3)  Despite subsection (1), if:

                     (a)  a petroleum exploration permittee has applied for a petroleum retention lease under section 141 over a block or blocks; and

                     (b)  a notice refusing to grant the petroleum retention lease has been given to the permittee under section 143;

the application period for an application made by the permittee under section 168 for the grant of a petroleum production licence over the block or blocks is whichever of the following periods ends last:

                     (c)  the period that is applicable under subsection (1);

                     (d)  the period of 12 months after the day on which the notice was given.

Note:          A failure to make an application within the application period results in revocation of the petroleum exploration permit to the extent to which it relates to the block concerned—see section 188.

170  Application for petroleum production licence by lessee

Scope

             (1)  This section applies to a petroleum retention lease if the Royalty Act does not apply to the lease.

Note:          Schedule 4 deals with applications for petroleum production licences by the holders of petroleum retention leases to which the Royalty Act applies.

Application for petroleum production licence

             (2)  If a petroleum retention lease is in force over a block or blocks, the lessee may apply to the Titles Administrator for the grant by the Joint Authority of a petroleum production licence over that block or over one or more of those blocks.

Proposals for work and expenditure

             (3)  An application under this section must be accompanied by details of the applicant’s proposals for work and expenditure in relation to the area comprised in the block or blocks specified in the application.

Greater Sunrise unit reservoir petroleum production licence

             (4)  An application under this section for the grant of a Greater Sunrise unit reservoir petroleum production licence must also:

                     (a)  nominate a person to be the unit operator, as defined in the Greater Sunrise unitisation agreement; and

                     (b)  be accompanied by each Joint Venturers’ Agreement, as defined in the Greater Sunrise unitisation agreement; and

                     (c)  be accompanied by a copy of the proposed Development Plan, as defined in the Greater Sunrise unitisation agreement.

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 Titles Administrator to require the applicant to give further information.

171  Offer document

             (1)  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 Joint Authority is satisfied that the area comprised in the block, or any one or more of the blocks, specified in the application contains petroleum; and

                     (c)  in the case of an application for a Greater Sunrise unit reservoir petroleum production licence—section 172 has been complied with; and

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

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

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

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

                     (e)  in a case where:

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

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

                            the Joint Authority is satisfied that:

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

                            (iv)  to the extent to which the agreement is a dealing to which Part 5.6 applies—the dealing has been approved under section 543 or is reasonably likely to be approved under that section; and

                             (v)  to the extent to which the agreement is a dealing to which Part 4.6 would apply if the petroleum production licence were to come into existence—it is reasonably likely that the dealing would, after the petroleum production licence comes into existence, be approved under section 493;

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 production licence over the block or blocks as to which the Joint Authority is so satisfied as mentioned in paragraph (b).

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.

Note 3:       Section 259 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

Note 4:       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).

Public interest

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

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

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

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

Deferral of decision

             (4)  This section has effect subject to section 174.

172  Consultation—Greater Sunrise unit reservoir petroleum production licence

                   Before the Greater Sunrise Offshore Petroleum Joint Authority gives an offer document to an applicant for the grant of a Greater Sunrise unit reservoir petroleum production licence, the Joint Authority must:

                     (a)  give to the Timor Sea Treaty Designated Authority a written notice that:

                              (i)  states that the Joint Authority is considering granting the licence to the applicant and naming the person whom the applicant has nominated to be the unit operator; and

                             (ii)  is accompanied by a copy of each Joint Venturers’ Agreement that accompanied the application; and

                            (iii)  is accompanied by a copy of the proposed Development Plan that accompanied the application; and

                     (b)  approve:

                              (i)  a unit operator for the development of the Greater Sunrise unit reservoirs in the blocks to which the licence relates; and

                             (ii)  each Joint Venturers’ Agreement for the development; and

                            (iii)  the Development Plan for the development; and

                     (c)  be satisfied that the Timor Sea Treaty Designated Authority has approved the same unit operator, Joint Venturers’ Agreements and Development Plan for the development.

173  Refusal to grant petroleum production licence

Scope

             (1)  This section applies if an application for the grant of a petroleum production licence has been made under:

                     (a)  section 168 or 170; or

                     (b)  clause 2 or 4 of Schedule 4.

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.

No block contains petroleum

             (2)  If:

                     (a)  the application specifies one block; and

                     (b)  the Joint Authority is not satisfied that the block contains petroleum;

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

             (3)  If:

                     (a)  the application specifies 2 or more blocks; and

                     (b)  the Joint Authority is not satisfied that any of the blocks contains petroleum;

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

Some, but not all, blocks contain petroleum

             (4)  If:

                     (a)  the application specifies 2 or more blocks; and

                     (b)  the Joint Authority is satisfied that:

                              (i)  only one of the blocks contains petroleum; or

                             (ii)  some, but not all, of the blocks contain petroleum;

the Joint Authority must, by written notice given to the applicant, refuse to grant a petroleum production licence to the applicant in relation to the remaining block or blocks.

Note:          The petroleum exploration permit or petroleum retention lease remains in force in relation to the remaining block or blocks.

Application for Greater Sunrise unit reservoir petroleum production licence—no approval by Timor Sea Treaty Designated Authority

             (5)  If:

                     (a)  the application is for a Greater Sunrise unit reservoir petroleum production licence; and

                     (b)  the Joint Authority is not satisfied that the Timor Sea Treaty Designated Authority has given the approvals mentioned in paragraph 172(c);

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

Impact on greenhouse gas titles

             (6)  If:

                     (a)  (assuming that the applicant were granted a petroleum production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph 171(1)(b)) the petroleum production licence would be a post‑commencement petroleum production licence; and

                     (b)  either:

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

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

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

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

             (7)  If:

                     (a)  (assuming that the applicant were granted a petroleum production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph 171(1)(b)) the petroleum production licence would be a post‑commencement petroleum production licence; and

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

                     (c)  the Joint Authority is not satisfied that:

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

                             (ii)  to the extent to which the agreement is a dealing to which Part 5.6 applies—the dealing has been approved under section 543 or is reasonably likely to be approved under that section; and

                            (iii)  to the extent to which the agreement is a dealing to which Part 4.6 would apply if the petroleum production licence were to come into existence—it is reasonably likely that the dealing would, after the petroleum production licence comes into existence, be approved under section 493;

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

Reasons for refusal

             (8)  A notice under this section must set out the reasons for the Joint Authority’s refusal.

Public interest

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

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

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

           (10)  Subsection (9) does not limit the matters to which the Joint Authority may have regard.

Deferral of application

           (11)  This section has effect subject to section 174.

173A  Time limit for making decision about grant of petroleum production licence

Scope

             (1)  This section applies if an application for the grant of a petroleum production licence (other than a Greater Sunrise unit reservoir petroleum production licence) has been made under section 168 or 170.

Note 1:       Section 168 deals with applications by permittees.

Note 2:       Section 170 deals with applications by lessees.

Time limit

             (2)  The Joint Authority must make a decision under section 171 or 173, in relation to the application, within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (3)  If:

                     (a)  section 174 applies in relation to the application; and

                     (b)  the Joint Authority defers taking any action in relation to the application in accordance with that section;

the period referred to in subsection (2) of this section is extended by one day for each day during which the deferral continues.

             (4)  If the Titles Administrator, by written notice under subsection 258(2), requires the applicant to give further information in connection with the application, the period referred to in subsection (2) of this section is extended by one day for each day during the period:

                     (a)  beginning on the day on which the notice is given; and

                     (b)  ending when the applicant gives the Titles Administrator the information.

             (5)  The Joint Authority is not required to comply with subsection (2) unless a number of days is prescribed for the purposes of subparagraph (2)(b)(ii).

             (6)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (2)(b)(i).

             (7)  A failure to comply with subsection (2) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

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

Scope

             (1)  This section applies 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)  assuming that the applicant were granted a petroleum production licence over the block or blocks as to which the Joint Authority is so satisfied as mentioned in paragraph 171(1)(b), the petroleum production licence would be a post‑commencement petroleum production licence; and

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

                     (d)  the Joint Authority is satisfied that it would be in the public interest to defer taking any action under section 171 or 173 in relation to the application for the grant of the petroleum production licence until the application for the greenhouse gas assessment permit is finalised.

Deferral

             (2)  The Joint Authority must not take any action under section 171 or 173 in relation to the application for the grant of the petroleum production licence until 24 hours after whichever of the following events happens first:

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

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

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

175  Grant of petroleum production licence

                   If:

                     (a)  an applicant has been given an offer document under section 171; 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 production licence over the block or blocks as to which the Joint Authority is satisfied as mentioned in paragraph 171(1)(b).

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 an application made by a petroleum exploration permittee in relation to a block lapses, the petroleum exploration permit is revoked to the extent to which it relates to that block—see section 188 or clause 8 of Schedule 4.

Note 3:       If an application made by a petroleum retention lessee in relation to a block lapses, the petroleum retention lease is revoked to the extent to which it relates to that block—see section 188 or clause 8 of Schedule 4.

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

                   When a petroleum production licence under section 175 comes into force in relation to one or more blocks, a petroleum exploration permit or petroleum retention lease ceases to be in force to the extent to which it relates to those blocks.

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

Scope

             (1)  This section applies if a transfer of a petroleum exploration permit or petroleum retention lease is registered under section 479:

                     (a)  after an application has been made:

                              (i)  under section 168 or clause 2 of Schedule 4 for the grant of a petroleum production licence over a block in relation to which the petroleum exploration permit is in force; or

                             (ii)  under section 170 or clause 4 of Schedule 4 for the grant of a petroleum production licence over a block in relation to which the petroleum retention lease is in force; and

                     (b)  before any action has been taken by the Joint Authority under section 171 or 173 in relation to the application.

Transferee to be treated as applicant

             (2)  After the transfer:

                     (a)  in the case of an application under section 168—that section has effect in relation to the application as if any reference in subsection (3) of that section to the applicant were a reference to the transferee; and

                     (b)  if the Royalty Act applies to the permit or lease—subsection 6(2) of the Royalty Act has effect in relation to the application as if any reference in that subsection to a person who has applied or applies for such a petroleum production licence were a reference to the transferee; and

                     (c)  in all cases—sections 171 and 175 and Part 2.10 of this Act 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 3Obtaining a cash‑bid petroleum production licence over a surrendered block or similar block

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

Invitation to apply for a cash‑bid petroleum production licence

             (1)  If:

                     (a)  a petroleum production licence is surrendered or cancelled to the extent to which it relates to a block; or

                     (b)  a petroleum production licence is terminated to the extent to which it relates to a block; or

                     (c)  a petroleum exploration permit or petroleum retention lease is surrendered, cancelled or revoked to the extent to which it relates to a block:

                              (i)  that, at the time of the surrender, cancellation or revocation, was, or was included in, a location; and

                             (ii)  in which, in the opinion of the Joint Authority, there is petroleum;

the Joint Authority may, at any later time, by notice published in the Gazette:

                     (d)  invite applications for the grant by the Joint Authority of a petroleum production licence over that block; and

                     (e)  specify a period within which applications may be made.

             (2)  A notice under subsection (1) must state that an applicant is required to specify an amount that the applicant would be prepared to pay for the grant of the licence.

Application for cash‑bid petroleum production licence

             (3)  An application under this section must:

                     (a)  be accompanied by details of the applicant’s proposals for work and expenditure in relation to the area comprised in the block; and

                     (b)  specify the amount that the applicant would be prepared to pay for the grant of the licence.

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 Titles Administrator to require the applicant to give further information.

Deposit

             (4)  An application under this section must be accompanied by a deposit of 10% of the amount that the applicant has specified under paragraph (3)(b).

Refund of deposit

             (5)  If the petroleum production licence is not granted, the deposit must be refunded to the applicant.

             (6)  Subsection (5) does not apply if:

                     (a)  the applicant has been given an offer document under subsection 179(2) or 180(3) in relation to the application; and

                     (b)  the applicant does not, under section 260, request the grant of the petroleum production licence.

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

Scope

             (1)  This section applies if:

                     (a)  the Joint Authority publishes a notice under subsection 178(1) inviting applications for the grant of a petroleum production licence over a block; and

                     (b)  at the end of the period specified in the notice, only one application has been made under section 178 in relation to the block.

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 production licence over that block; 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).

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

Scope

             (1)  This section applies if:

                     (a)  the Joint Authority publishes a notice under subsection 178(1) inviting applications for the grant of a petroleum production licence over a block; and

                     (b)  at the end of the period specified in the notice, 2 or more applications have been made under section 178 in relation to the block.

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 178(3)(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 178(3)(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 178(3)(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 production licence over the block.

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).

Lapsed applications

             (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.

181  Grant of cash‑bid petroleum production licence

             (1)  If:

                     (a)  an applicant has been given an offer document under section 179 or 180; 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)  in the case of an offer document under section 180—the applicant has paid the specified balance within the period applicable under section 261;

the Joint Authority must grant the applicant a petroleum production licence over the block 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:       In the case of an offer document under section 180, 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 production licence.

Division 4Obtaining petroleum production licences over individual blocks

182  Applications for petroleum production licences over individual blocks

Scope

             (1)  This section applies to a petroleum production licence (the initial petroleum production licence) if:

                     (a)  the licence is in force over 2 or more blocks; and

                     (b)  the blocks do not form a location or part of a location.

Application for petroleum production licence

             (2)  The licensee of the initial petroleum production licence may apply to the Joint Authority for the grant of 2 or more new petroleum production licences over the blocks that were the subject of the initial petroleum production licence, in exchange for the initial petroleum production licence.

             (3)  An application under this section:

                     (a)  must specify the number of new petroleum production licences required; and

                     (b)  must specify the block or blocks that were the subject of the initial petroleum production licence and for which each new petroleum production licence is sought.

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.

183  Grant of petroleum production licences over individual blocks

Scope

             (1)  This section applies if a licensee of an initial petroleum production licence mentioned in section 182 has made an application under that section.

Grant of petroleum production licence

             (2)  The Joint Authority must grant the licensee new petroleum production licences in accordance with the application.

Duration of new petroleum production licence

             (3)  If the initial petroleum production licence is a fixed‑term petroleum production licence, a new petroleum production licence granted under this section remains in force for the remainder of the term of the initial petroleum production licence.

             (4)  If the initial petroleum production licence is a life‑of‑field petroleum production licence, a new petroleum production licence granted under this section remains in force indefinitely.

             (5)  Subsections (3) and (4) have effect subject to this Chapter but despite section 165.

Note:          See the notes at the end of section 165.

Conditions of new petroleum production licence

             (6)  A new petroleum production licence under this section must be granted subject to conditions corresponding as closely as practicable to the conditions to which the initial petroleum production licence was subject.

Revocation of initial petroleum production licence

             (7)  If new petroleum production licences are granted under this section:

                     (a)  the initial petroleum production licence is revoked; and

                     (b)  the revocation has effect on the day on which those new licences come into force.

Time limit for making decision

             (8)  The Joint Authority must make a decision under subsection (2) within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (9)  The Joint Authority is not required to comply with subsection (8) unless a number of days is prescribed for the purposes of subparagraph (8)(b)(ii).

           (10)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (8)(b)(i).

           (11)  A failure to comply with subsection (8) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

Division 5Renewal of fixed‑term petroleum production licences

184  Application for renewal of fixed‑term petroleum production licence

Scope

             (1)  This section applies to a fixed‑term petroleum production licence.

Application for renewal

             (2)  A petroleum production licensee may apply to the Titles Administrator for the renewal by the Joint Authority of the licence.

             (3)  An application to renew a petroleum production licence must be made at least 180 days before the expiry date of the licence.

             (4)  Despite subsection (3), the Titles Administrator may accept an application to renew a petroleum production licence if the application is made:

                     (a)  later than 180 days before the expiry date of the licence; and

                     (b)  before the expiry date of the licence.

Proposals for work and expenditure

             (5)  An application to renew a petroleum production licence must be accompanied by details of the licensee’s proposals for work and expenditure in relation to the licence 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.

Extension of duration of petroleum production licence pending decision on application

             (6)  If:

                     (a)  a petroleum production licensee makes an application to renew the licence; and

                     (b)  the licence would, apart from this subsection, expire:

                              (i)  before the Joint Authority grants, or refuses to grant, the renewal of the licence; or

                             (ii)  before the application lapses as provided by section 260;

the licence continues in force:

                     (c)  until the Joint Authority grants, or refuses to grant, the renewal of the licence; or

                     (d)  until the application so lapses;

whichever happens first.

             (7)  Subsection (6) has effect subject to this Chapter but despite section 165.

Note:          See the notes at the end of section 165.

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

Scope

             (1)  This section applies if an application to renew a fixed‑term petroleum production licence has been made under section 184.

Offer document—compliance with conditions etc., first renewal

             (2)  If:

                     (a)  each of the following has been complied with:

                              (i)  the conditions to which the petroleum production licence 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 application is for the first renewal of the petroleum production licence;

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 licence.

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—compliance with conditions etc., second renewal, recovery of petroleum

             (3)  If:

                     (a)  each of the following has been complied with:

                              (i)  the conditions to which the petroleum production licence 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)  both:

                              (i)  the application is for the second renewal of the petroleum production licence; and

                             (ii)  petroleum recovery operations have been carried on in the licence area within 5 years before the application for the renewal was made;

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 licence.

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., sufficient grounds to warrant renewal

             (4)  If:

                     (a)  any of:

                              (i)  the conditions to which the petroleum production licence 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 renewal of the petroleum production licence;

the Joint Authority may give the applicant a written notice (called an offer document) telling the applicant that the Joint Authority is prepared to renew the licence.

Note:          Section 259 sets out additional requirements for offer documents (for example, a requirement that an offer document must contain a summary of conditions).

186  Refusal to renew fixed‑term petroleum production licence

Scope

             (1)  This section applies if an application to renew a fixed‑term petroleum production licence has been made under section 184.

Refusal on grounds of non‑compliance with conditions

             (2)  If:

                     (a)  any of:

                              (i)  the conditions to which the petroleum production licence 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 renewal of the petroleum production licence;

the Joint Authority must, by written notice given to the applicant, refuse to renew the licence.

Note:          Consultation procedures apply—see section 262.

Refusal on grounds of inactivity

             (3)  If:

                     (a)  the application relates to a renewal other than the first renewal; and

                     (b)  no petroleum recovery operations have been carried on in the licence area within 5 years before the application for the renewal was made;

the Joint Authority may, by written notice given to the applicant, refuse to renew the licence.

186A  Time limit for making decision about renewal of fixed‑term petroleum production licence

             (1)  The Joint Authority must make a decision under section 185 or 186, in relation to an application under section 184, within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (2)  The Joint Authority is not required to comply with subsection (1) unless a number of days is prescribed for the purposes of subparagraph (1)(b)(ii).

             (3)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (1)(b)(i).

             (4)  A failure to comply with subsection (1) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

187  Renewal of fixed‑term petroleum production licence

                   If:

                     (a)  an applicant has been given an offer document under section 185; 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 production licence.

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 6What happens if a block is not taken up

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

Permittee does not apply for a petroleum production licence

             (1)  If:

                     (a)  a petroleum exploration permittee could apply under section 168 for a petroleum production licence in relation to a block or blocks; and

                     (b)  the permittee does not, within the application period, make the application;

then:

                     (c)  the petroleum exploration permit is revoked to the extent to which it relates to that block or those blocks; and

                     (d)  the revocation has effect at the end of the application period.

Note:          For application period, see section 169.

Permittee’s application lapses

             (2)  If an application made by a petroleum exploration permittee under section 168 in relation to a block or blocks lapses:

                     (a)  the petroleum exploration permit is revoked to the extent to which it relates to that block or those blocks; and

                     (b)  the revocation has effect:

                              (i)  at the end of the application period; or

                             (ii)  on the lapsing of the application;

                            whichever is the later.

Note:          For lapsing of applications, see section 260.

Lessee’s application lapses

             (3)  If an application made by a petroleum retention lessee under section 170 in relation to a block or blocks lapses:

                     (a)  the petroleum retention lease is revoked to the extent to which it relates to that block or those blocks; and

                     (b)  the revocation has effect on the lapsing of the application.

Note 1:       For lapsing of applications, see section 260.

Note 2:       See also subsection 132(3) (revocation of declaration of location where block is no longer the subject of a petroleum exploration permit or a petroleum retention lease).

Division 7Petroleum field development

Subdivision ADirections about the recovery of petroleum

189  Direction to recover petroleum

Initial direction

             (1)  If:

                     (a)  petroleum is not being recovered in a petroleum production licence area; and

                     (b)  the Joint Authority is satisfied that there is recoverable petroleum in that area;

the Joint Authority may, by written notice given to the licensee, direct the licensee to take all necessary and practicable steps to recover that petroleum.

Further direction

             (2)  If:

                     (a)  a direction is in force under subsection (1) in relation to a licensee; and

                     (b)  the Joint Authority is not satisfied with the steps taken or being taken by the licensee;

the Joint Authority may, by written notice given to the licensee, direct the licensee to take such steps as the Joint Authority thinks necessary and practicable for, or in relation to, the recovery of petroleum in the licence area.

190  Directions about the rate of recovery of petroleum

Initial direction

             (1)  If petroleum is being recovered in a petroleum production licence area, the Joint Authority may, by written notice given to the licensee, direct the licensee to take all necessary and practicable steps to increase or reduce the rate at which petroleum is being recovered:

                     (a)  in the licence area; or

                     (b)  from a petroleum pool in the licence area;

to the rate specified in the notice.

Further direction

             (2)  If:

                     (a)  a direction is in force under subsection (1) in relation to a licensee; and

                     (b)  the Joint Authority is not satisfied with the steps taken or being taken by the licensee;

the Joint Authority may, by written notice given to the licensee, give the licensee such directions as the Joint Authority thinks necessary and practicable for, or in relation to, the increase or reduction of the rate at which petroleum is being recovered:

                     (c)  in the licence area; or

                     (d)  from a petroleum pool in the licence area.

Matters to be taken into account

             (3)  In deciding whether to give a direction under this section, the Joint Authority may take into account matters relating to the effects on Commonwealth revenue of the proposed direction.

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

Good oilfield practice

             (5)  The Joint Authority must not give a direction under this section if the direction would require action to be taken that is contrary to good oilfield practice.

Subdivision BUnit development

191  Unit development

Meaning of unit development

             (1)  In this section, the expression unit development:

                     (a)  applies in relation to a petroleum pool (other than either of the Greater Sunrise unit reservoirs) that is partly in a particular licence area of a licensee of a petroleum production licence and partly in:

                              (i)  the licence area of another licensee of a petroleum production licence; or

                             (ii)  an area that is not within an offshore area but in which a person other than the first‑mentioned licensee is lawfully entitled to carry on petroleum recovery operations from the pool; and

                     (b)  means the carrying on of petroleum recovery operations from that pool under cooperative arrangements between the persons entitled to carry on such operations in each of those areas.

Unit development agreement

             (2)  A licensee of a petroleum production licence may from time to time enter into a written agreement for, or in relation to, the unit development of a petroleum pool, but nothing in this subsection derogates from the operation of section 487.

Direction to enter into unit development agreement

             (3)  The Joint Authority, on the Joint Authority’s own initiative or on application made to the Joint Authority in writing by:

                     (a)  a licensee of a petroleum production licence in whose licence area there is a part of a particular petroleum pool; or

                     (b)  a person who is lawfully entitled to carry on petroleum recovery operations in an area outside the offshore area that includes part of a particular petroleum pool that extends into the offshore area;

may, for the purpose of securing the more effective recovery of petroleum from the petroleum pool, direct any licensee of a petroleum production licence whose licence area includes part of the petroleum pool, by written notice given to the licensee, to:

                     (c)  enter into a written agreement, within the period specified in the notice, for, or in relation to, the unit development of the petroleum pool; and

                     (d)  lodge an application in accordance with section 488 for approval of any dealing to which the agreement relates.

Unit development scheme

             (4)  If:

                     (a)  a licensee of a petroleum production licence who is directed under subsection (3) to enter into an agreement for, or in relation to, the unit development of a petroleum pool does not enter into such an agreement within the specified period; or

                     (b)  the licensee enters into such an agreement, but:

                              (i)  an application for approval of a dealing to which the agreement relates is not lodged with the Titles Administrator; or

                             (ii)  if an application is so lodged—the dealing is not approved under section 493;

the Joint Authority may, by written notice given to the licensee, direct the licensee to submit to the Joint Authority, within the period specified in the notice, a scheme for, or in relation to, the unit development of the petroleum pool.

Directions

             (5)  At any time after the end of the period within which a scheme for, or in relation to, the unit development of a petroleum pool is to be submitted by a licensee under subsection (4), the Joint Authority may, by written notice given to the licensee, give to the licensee such directions as the Joint Authority thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool.

             (6)  If a person is the licensee of petroleum production licences in relation to 2 or more licence areas in each of which there is part of a particular petroleum pool, the Joint Authority may, by written notice given to the licensee, give to the licensee such directions as the Joint Authority thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool.

             (7)  If:

                     (a)  an agreement under this section is in force; or

                     (b)  the Joint Authority has given directions under subsection (5) or (6);

the Joint Authority may, having regard to additional information that has become available, by written notice given to the licensee or licensees concerned, give to the licensee or licensees such directions, or further directions, as the case may be, as the Joint Authority thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool.

             (8)  The Joint Authority must not give a direction under subsection (6) or (7) unless the Titles Administrator has given to the licensee or licensees concerned an opportunity to confer with the Titles Administrator about the proposed direction.

             (9)  Directions under subsection (5), (6) or (7) may include directions as to the rate at which petroleum is to be recovered.

Definition

           (10)  In this section:

dealing means a dealing to which Part 4.6 applies.

Consultation

           (11)  If a petroleum pool extends, or is reasonably believed by the Titles Administrator to extend, from the offshore area in respect of a State or Territory into lands to which:

                     (a)  the laws of that State or Territory relating to exploiting petroleum resources apply; or

                     (b)  the laws of another State or Territory relating to exploiting petroleum resources apply;

the Titles Administrator must consult about exploiting the petroleum pool with the appropriate authority of a State or Territory referred to in paragraph (a) or (b).

Note:          The offshore area of a State or Territory is defined by section 8.

Approval

           (12)  If subsection (11) applies in relation to a petroleum pool, a Joint Authority must not:

                     (a)  approve an agreement under this section; or

                     (b)  give a direction under this section;

in relation to that petroleum pool except with the approval of any other Joint Authority concerned and any State or Territory authority concerned.

Part 2.5Infrastructure licences

Division 1General provisions

192  Simplified outline

                   The following is a simplified outline of this Part:

•      It is an offence to construct or operate an infrastructure facility in an offshore area except:

               (a)     under an infrastructure licence; or

              (b)     as otherwise authorised or required by or under this Act.

•      This Part provides for the grant of infrastructure licences.

•      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.

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

             (1)  A person commits an offence if:

                     (a)  the person:

                              (i)  starts to construct or reconstruct an infrastructure facility; or

                             (ii)  continues to construct or reconstruct an infrastructure facility; or

                            (iii)  starts to alter an infrastructure facility; or

                            (iv)  continues to alter an infrastructure facility; or

                             (v)  operates an infrastructure facility; and

                     (b)  the person’s conduct occurs in an offshore area.

Penalty:  Imprisonment for 5 years.

             (2)  Subsection (1) does not apply if the conduct is:

                     (a)  authorised by an infrastructure 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.

194  Rights conferred by an infrastructure licence

             (1)  An infrastructure licence authorises the licensee, in accordance with the conditions (if any) to which the licence is subject:

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

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

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

                            so long as those facilities are for engaging in:

                            (iii)  a subsection 15(2) activity; or

                            (iv)  a subsection 15(3) activity specified in the licence as the result of a variation under section 205; or

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

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

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

                            so long as those facilities are for engaging in:

                            (iii)  a subsection 15(2) activity specified in the licence; or

                            (iv)  a subsection 15(3) activity specified in the licence.

             (2)  The rights conferred on the licensee by subsection (1) are subject to this Act and the regulations.

             (3)  To avoid doubt, the grant of an infrastructure licence is not a precondition to doing anything that could be authorised by a petroleum exploration permit, petroleum retention lease, petroleum production licence or pipeline licence.

195  Conditions of infrastructure licences

             (1)  The Joint Authority may grant an infrastructure licence subject to whatever conditions the Joint Authority thinks appropriate.

             (2)  The conditions (if any) must be specified in the licence.

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

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

                     (b)  those regulations impose requirements on the licensee;

the licensee will comply with those requirements.

             (4)  The regulations may establish a regime for third party access to services provided by means of the use of an infrastructure facility that is for engaging in any of the activities to which subsection 15(3) applies.

Note:          Subsection 15(3) applies to certain greenhouse gas activities.

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

196  Duration of infrastructure licence

             (1)  An infrastructure licence remains in force indefinitely.

             (2)  Subsection (1) has effect subject to this Chapter.

Note 1:       For the surrender of an infrastructure licence, see Part 2.12.

Note 2:       For the cancellation of an infrastructure licence, see Part 2.13.

Note 3:       For the termination of an infrastructure licence if there have been no operations for 5 years, see section 197.

197  Termination of infrastructure licence if no operations for 5 years

Termination of licence

             (1)  If an infrastructure licence is in force, and the licensee:

                     (a)  has not carried out any construction work under the licence at any time during a continuous period of at least 5 years; and

                     (b)  has not used the infrastructure facilities constructed under the licence at any time during a continuous period of at least 5 years;

the Joint Authority may, by written notice given to the licensee, tell the licensee that the Joint Authority proposes to terminate the infrastructure licence after the end of 30 days after the notice is given.

             (2)  At any time after the end of 30 days after the notice referred to in subsection (1) is given to the licensee, the Joint Authority may, by written notice given to the licensee, terminate the infrastructure licence.

Note:          For remedial directions following termination, see section 587 or 587A.

             (3)  In working out, for the purposes of subsection (1):

                     (a)  the period in which an infrastructure licensee did not carry out any construction work under the licence; or

                     (b)  the period in which an infrastructure licensee did not use the infrastructure facilities constructed under the licence;

disregard any period in which construction work was not carried out, or the infrastructure facilities were not used, as the case may be, because of circumstances beyond the licensee’s control.

             (4)  For the purposes of subsection (3), the depletion of recoverable petroleum is not a circumstance beyond the licensee’s control.

Note:          See also section 780 (compensation for acquisition of property).

Consultation

             (5)  The Joint Authority may give a copy of a notice under subsection (1) to such other persons (if any) as the Joint Authority thinks fit.

             (6)  A notice under subsection (1) must:

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

                     (b)  specify a time limit for making that submission.

Note:          All communications to the Joint Authority are to be made through the Titles Administrator—see section 63.

             (7)  In deciding whether to terminate the licence, the Joint Authority must take into account any submissions made in accordance with the notice.

Division 2Obtaining an infrastructure licence

198  Application for infrastructure licence

             (1)  A person may apply to the Titles Administrator for the grant by the Joint Authority of an infrastructure licence.

Details

             (2)  An application under this section must be accompanied by details of the applicant’s proposals for the construction and operation of infrastructure facilities at a place that is:

                     (a)  in an offshore area; and

                     (b)  described 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.

Note 3:       Section 258 enables the Titles Administrator to require the applicant to give further information.

199  Grant of infrastructure licence—offer document

                   If an application for the grant of an infrastructure licence has been made under section 198, the Joint Authority may give the applicant a written notice (called an offer document) telling the applicant the Joint Authority is prepared to grant the applicant an infrastructure licence in relation to the place described in 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).

Note 3:       For consultation procedures, see sections 202 and 203.

200  Refusal to grant infrastructure licence

                   If:

                     (a)  an application for the grant of an infrastructure licence has been made under section 198; and

                     (b)  the Joint Authority decides not to give the applicant an offer document under section 199;

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

200A  Time limit for making decision about grant of infrastructure licence

             (1)  The Joint Authority must make a decision under section 199 or 200, in relation to an application under section 198, within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (2)  If the Titles Administrator, by written notice under subsection 258(2), requires the applicant to give further information in connection with the application, the period referred to in subsection (1) of this section is extended by one day for each day during the period:

                     (a)  beginning on the day on which the notice is given; and

                     (b)  ending when the applicant gives the Titles Administrator the information.

             (3)  The Joint Authority is not required to comply with subsection (1) unless a number of days is prescribed for the purposes of subparagraph (1)(b)(ii).

             (4)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (1)(b)(i).

             (5)  A failure to comply with subsection (1) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

201  Grant of infrastructure licence

                   If:

                     (a)  an applicant has been given an offer document under section 199; 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 the infrastructure licence concerned.

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).

202  Consultation with petroleum titleholders—grant of infrastructure licence

Scope

             (1)  This section applies if:

                     (a)  an application for an infrastructure licence (the proposed infrastructure licence) has been made under section 198 in relation to a place in a block; and

                     (b)  the block:

                              (i)  is the subject of a petroleum exploration permit, petroleum retention lease or petroleum production licence; or

                             (ii)  is, or is proposed to be, transected by a pipeline in accordance with the provisions of a pipeline licence; or

                            (iii)  includes the whole or a part of a place that is the subject of another infrastructure licence; or

                            (iv)  is the subject of a petroleum special prospecting authority or petroleum access authority; and

                     (c)  the applicant is not the registered holder of the petroleum exploration permit, petroleum retention lease, petroleum production licence, pipeline licence, other infrastructure licence, petroleum special prospecting authority or petroleum access authority; and

                     (d)  if subparagraph (b)(i), (ii) or (iii) applies—the registered holder of the petroleum exploration permit, petroleum retention lease, petroleum production licence, pipeline licence or other infrastructure licence has not given written consent to the grant of the proposed infrastructure licence; and

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

                              (i)  the registered holder of the petroleum special prospecting authority or petroleum access authority has not given written consent to the grant of the proposed infrastructure licence; or

                             (ii)  the petroleum special prospecting authority or petroleum access authority will not expire before any construction or operation of infrastructure facilities under the proposed infrastructure licence would occur.

Consultation

             (2)  Before the Joint Authority gives the applicant an offer document under section 199, the Joint Authority must:

                     (a)  by written notice given to the registered holder of the petroleum exploration permit, petroleum retention lease, petroleum production licence, pipeline licence, other infrastructure licence, petroleum special prospecting authority or petroleum access authority, give at least 30 days notice of the Joint Authority’s proposal to give the applicant the offer document; and

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

             (3)  The notice must:

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

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

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

Note:          All communications to the Joint Authority are to be made through the Titles Administrator—see section 63.

             (4)  In deciding:

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

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

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

203  Consultation with greenhouse gas titleholders—grant of infrastructure licence

Scope

             (1)  This section applies if:

                     (a)  an application for an infrastructure licence (the proposed infrastructure licence) has been made under section 198 in relation to a place in a block; and

                     (b)  the block:

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

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

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

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

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

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

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

Consultation

             (2)  Before the Joint Authority gives the applicant an offer document under section 199, the Joint Authority must:

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

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

             (3)  The notice must:

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

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

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

Note:          All communications to the Joint Authority are to be made through the Titles Administrator—see section 63.

             (4)  In deciding:

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

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

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

Division 3Varying an infrastructure licence

204  Application for variation of infrastructure licence

             (1)  An infrastructure licensee may apply to the Titles Administrator for the variation by the Joint Authority of the licence.

             (2)  An application under this section must:

                     (a)  be accompanied by details of the proposed variation; and

                     (b)  set out the reasons for the proposed variation.

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 Titles Administrator to require the applicant to give further information.

205  Variation of infrastructure licence

             (1)  If an infrastructure licensee applies under section 204 for a variation of the licence, the Joint Authority may, by written notice given to the licensee:

                     (a)  vary the licence to such extent as the Joint Authority thinks necessary; or

                     (b)  refuse to vary the licence.

Note:          For consultation procedures, see sections 206 and 207.

When variation takes effect

             (2)  A variation of an infrastructure licence under this section takes effect on the day on which notice of the variation is published in the Gazette.

Note:          For publication in the Gazette of notice of the variation, see section 708.

Time limit for making decision

             (3)  The Joint Authority must make a decision under subsection (1) within the period that:

                     (a)  begins when the application was made; and

                     (b)  runs for:

                              (i)  if a written agreement between the applicant and the Joint Authority in relation to the application specifies a number of days for the purposes of this subparagraph—that number of days; or

                             (ii)  if no such agreement is in force—the prescribed number of days.

             (4)  If the Titles Administrator, by written notice under subsection 258(2), requires the applicant to give further information in connection with the application, the period referred to in subsection (3) of this section is extended by one day for each day during the period:

                     (a)  beginning on the day on which the notice is given; and

                     (b)  ending when the applicant gives the Titles Administrator the information.

             (5)  The Joint Authority is not required to comply with subsection (3) unless a number of days is prescribed for the purposes of subparagraph (3)(b)(ii).

             (6)  The applicant and the Joint Authority may vary or terminate an agreement referred to in subparagraph (3)(b)(i).

             (7)  A failure to comply with subsection (3) in relation to a decision does not affect the validity of the decision.

Note:          See also sections 286B and 286C.

206  Consultation with petroleum titleholders—variation of infrastructure licence

Scope

             (1)  This section applies if:

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

                     (b)  an application for variation of the first infrastructure licence is made under section 204; and

                     (c)  the block:

                              (i)  is the subject of a petroleum exploration permit, petroleum retention lease or petroleum production licence; or

                             (ii)  is, or is proposed to be, transected by a pipeline in accordance with the provisions of a pipeline licence; or

                            (iii)  includes the whole or a part of a place that is the subject of another infrastructure licence; or

                            (iv)  is the subject of a petroleum special prospecting authority or petroleum access authority; and

                     (d)  the applicant is not the registered holder of the petroleum exploration permit, petroleum retention lease, petroleum production licence, pipeline licence, other infrastructure licence, petroleum special prospecting authority or petroleum access authority; and

                     (e)  if subparagraph (c)(i), (ii) or (iii) applies—the registered holder of the petroleum exploration permit, petroleum retention lease, petroleum production licence, pipeline licence or other infrastructure licence has not given written consent to the variation of the first infrastructure licence; and

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

                              (i)  the registered holder of the petroleum special prospecting authority or petroleum access authority has not given written consent to the variation of the first infrastructure licence; or

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

Consultation

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

                     (a)  by written notice given to the registered holder of the petroleum exploration permit, petroleum retention lease, petroleum production licence, pipeline licence, other infrastructure licence, petroleum special prospecting authority or petroleum access authority, give at least 30 days notice that the Joint Authority is considering the application; and

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

             (3)  The notice must:

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

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

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

Note:          All communications to the Joint Authority are to be made through the Titles Administrator—see section 63.

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

207  Consultation with greenhouse gas titleholders—variation of infrastructure licence

Scope

             (1)  This section applies if:

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

                     (b)  an application for variation of the first infrastructure licence is made under section 204; and

                     (c)  the block:

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

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

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

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

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

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

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

Consultation

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

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

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

             (3)  The notice must:

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

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

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

Note:          All communications to the Joint Authority are to be made through the Titles Administrator—see section 63.

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

Division 4Directions by responsible Commonwealth Minister

208  Directions by responsible Commonwealth Minister

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

                     (a)  a specified application for an infrastructure licence, where any of the infrastructure facilities to which the licence relates is an infrastructure facility as a result of subsection 15(3); or

                     (b)  a specified infrastructure licence, where any of the infrastructure facilities to which the licence relates is an infrastructure facility as a result of subsection 15(3).

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

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

Part 2.6Pipeline licences

Division 1General provisions

209  Simplified outline

                   The following is a simplified outline of this Part:

•      It is an offence to construct or operate a pipeline in an offshore area without a pipeline licence.

•      This Part provides for the grant of pipeline licences.

•      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 pipeline licensee must not cease to operate the pipeline without the consent of the Joint Authority.

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

General offence

             (1)  A person commits an offence if:

                     (a)  the person:

                              (i)  starts to construct or reconstruct a pipeline; or

                             (ii)  continues to construct or reconstruct a pipeline; or

                            (iii)  starts to alter a pipeline; or

                            (iv)  continues to alter a pipeline; or

                             (v)  operates a pipeline; and

                     (b)  the person’s conduct occurs in an offshore area.

Penalty:  Imprisonment for 5 years.

             (2)  Subsection (1) does not apply to conduct that is authorised by a pipeline licence.

Note 1:       The defendant bears an evidential burden in relation to the matter in subsection (2)—see subsection 13.3(3) of the Criminal Code.

Note 2:       See also subsections (7) and (8) of this section.

Defences

             (7)  Subsection (1) does not apply if:

                     (a)  in an emergency in which there is a likelihood of loss or injury; or

                     (b)  for the purpose of maintaining a pipeline in good order or repair;

the person engages in the conduct to avoid that loss or injury, or to maintain the pipeline in good order and repair, and the person:

                     (c)  as soon as practicable, notifies NOPSEMA and the Titles Administrator of the conduct; and

                     (d)  complies with any directions given to the person by NOPSEMA or the responsible Commonwealth Minister.

Note:          The defendant bears an evidential burden in relation to the matter in subsection (7)—see subsection 13.3(3) of the Criminal Code.

             (8)  Subsection (1) does not apply to anything done in compliance with a direction under:

                     (a)  this Act; or

                     (b)  the regulations.

Note:          The defendant bears an evidential burden in relation to the matter in subsection (8)—see subsection 13.3(3) of the Criminal Code.

211  Rights conferred by pipeline licence

             (1)  A pipeline licence authorises the licensee, in accordance with the conditions (if any) to which the licence is subject:

                     (a)  to construct in the offshore area specified in the licence a pipeline:

                              (i)  of the design, construction, size and capacity specified in the licence; and

                             (ii)  along the route specified in the licence; and

                            (iii)  in the position, in relation to the seabed, specified in the licence; and

                     (b)  to construct in the offshore area specified in the licence the pumping stations, tank stations and valve stations specified in the licence in the positions specified in the licence; and

                     (c)  to operate:

                              (i)  that pipeline; and

                             (ii)  those pumping stations, tank stations and valve stations; and

                     (d)  to carry on such operations, to execute such works and to do all such other things in the offshore area specified in the licence as are necessary for, or incidental to, the construction or operation of:

                              (i)  that pipeline; and

                             (ii)  those pumping stations, tank stations and valve stations.

             (2)  The rights conferred on the licensee by subsection (1) are subject to this Act and the regulations.

212  Conditions of pipeline licences

             (1)  The Joint Authority may grant a pipeline licence subject to whatever conditions the Joint Authority thinks appropriate.

             (2)  The conditions (if any) must be specified in the licence.

Completion of pipeline

             (3)  A pipeline licence may be granted subject to a condition that the licensee must complete the construction of the pipeline within the period specified in the licence.

             (4)  Subsection (3) does not limit subsection (1).

Approval of greenhouse gas substance

             (5)  A pipeline licence is subject to the condition that the licensee will not operate the pipeline to convey a greenhouse gas substance unless the Joint Authority has approved the greenhouse gas substance under section 213.

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

             (7)  Subsection (5) does not limit subsection (1).

Access regime

             (8)  A pipeline licence is subject to the condition that, if:

                     (a)  regulations are made for the purposes of subsection (9); and

                     (b)  those regulations impose requirements on the licensee;

the licensee will comply with those requirements.

             (9)  The regulations may establish a regime for third party access to services provided by means of the use of greenhouse gas pipelines.

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

           (11)  Subsection (8) does not limit subsection (1).

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

             (1)  A pipeline licensee may apply to the Joint Authority for approval of a greenhouse gas substance that is to be conveyed by means of the pipeline.

             (2)  If an application for approval is made under subsection (1), the Joint Authority may, by written notice given to the applicant:

                     (a)  give the approval, with or without conditions to which the approval is subject; or

                     (b)  refuse to give the approval.

             (3)  In deciding whether to give an approval, the Joint Authority must have regard to:

                     (a)  in a case where it is proposed to inject the greenhouse gas substance into an identified greenhouse gas storage formation:

                              (i)  whether the greenhouse gas substance is suitable for injection into the identified greenhouse gas storage formation; and

                             (ii)  whether the greenhouse gas substance is suitable for permanent storage in the identified greenhouse gas storage formation; and

                     (b)  in a case where it is proposed to inject the greenhouse gas substance, on an appraisal basis, into a potential greenhouse gas storage formation (other than an identified greenhouse gas storage formation):

                              (i)  whether the greenhouse gas substance is suitable for injection, on an appraisal basis, into the potential greenhouse gas storage formation; and

                             (ii)  whether the greenhouse gas substance is suitable for storage, on an appraisal basis, in the potential greenhouse gas storage formation; and

                     (c)  such other matters (if any) as the Joint Authority considers relevant.

             (4)  To avoid doubt, section 211 does not imply that a pipeline licensee who applies for approval under subsection (1) of this section is entitled to be given the approval.

             (5)  The responsible Commonwealth Minister may, by written notice given to the Joint Authority, give the Joint Authority a direction in relation to the exercise by the Joint Authority of the power conferred on the Joint Authority by subsection (2) in relation to a specified application.

             (6)  The Joint Authority must comply with a direction under subsection (5).

             (7)  A direction under subsection (5) is not a legislative instrument.

214  Duration of pipeline licence

             (1)  A pipeline licence comes into force:

                     (a)  on the day on which the pipeline licence is granted; or

                     (b)  if a later day is specified in the pipeline licence as being the day on which the pipeline licence is to come into force—on that later day.

             (2)  A pipeline licence remains in force indefinitely.

             (3)  Subsection (2) has effect subject to this Chapter.

Note 1:       For the surrender of a pipeline licence, see Part 2.12.

Note 2:       For the cancellation of a pipeline licence, see Part 2.13.

Note 3:       For the termination of a pipeline licence if there have been no operations for 5 years, see section 215.

215  Termination of pipeline licence if no operations for 5 years

Termination of licence

             (1)  If a pipeline licence is in force, and the licensee:

                     (a)  has not carried out any construction work under the licence at any time during a continuous period of at least 5 years; and

                     (b)  has not used the pipeline or a part of the pipeline at any time during a continuous period of at least 5 years;

the Joint Authority may, by written notice given to the licensee, tell the licensee that the Joint Authority proposes to:

                     (c)  terminate the pipeline licence; or

                     (d)  terminate the pipeline licence in relation to the part of the pipeline;

as the case may be, after the end of 30 days after the notice is given.

             (2)  At any time after the end of 30 days after the notice referred to in subsection (1) is given to the licensee, the Joint Authority may, by written notice given to the licensee:

                     (a)  terminate the pipeline licence; or

                     (b)  terminate the pipeline licence in relation to the part of the pipeline;

as the case may be.

Note:          For remedial directions following termination, see section 587 or 587A.

             (3)  In working out, for the purposes of subsection (1):

                     (a)  the period in which a pipeline licensee did not carry out any construction work under the licence; or

                     (b)  the period in which a pipeline licensee did not use the pipeline or a part of the pipeline;

disregard any period in which construction work was not carried out, or the pipeline or part of the pipeline was not used, as the case may be, because of circumstances beyond the licensee’s control.

             (4)  For the purposes of subsection (3), the depletion of recoverable petroleum is not a circumstance beyond the licensee’s control.

Note:          See also section 780 (compensation for acquisition of property).

             (5)  For the purposes of subsection (3), the failure to obtain a greenhouse gas substance for conveyance in the pipeline, or a part of the pipeline, is not a circumstance beyond the licensee’s control.

Consultation

             (6)  The Joint Authority may give a copy of a notice under subsection (1) to such other persons (if any) as the Joint Authority thinks fit.

             (7)  A notice under subsection (1) must:

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

                              (i)  terminate the pipeline licence; or

                             (ii)  terminate the pipeline licence in relation to the part of the pipeline; and

                     (b)  specify a time limit for making that submission.

Note:          All communications to the Joint Authority are to be made through the Titles Administrator—see section 63.

             (8)  In deciding whether to:

                     (a)  terminate the pipeline licence; or

                     (b)  terminate the pipeline licence in relation to the part of the pipeline;

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

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

Scope

             (1)  This section applies if:

                     (a)  the construction of a pipeline is started, continued or completed in breach of this Act; or

                     (b)  a pipeline is altered or reconstructed in breach of this Act.

Direction by responsible Commonwealth Minister

             (2)  The responsible Commonwealth Minister may, by written notice given to whichever of the following persons is applicable:

                     (a)  if the construction of the pipeline has been completed—the owner of the pipeline;

                     (b)  if the construction of the pipeline has not been completed—the person for whom the pipeline is being constructed;

direct the person:

                     (c)  to make specified alterations to the pipeline; or

                     (d)  to move the pipeline to a specified place in the offshore area; or

                     (e)  to remove the pipeline from the offshore area;

within the period specified in the direction.

             (3)  The period specified in the direction must be reasonable.

Responsible Commonwealth Minister may take action if direction is not complied with

             (4)  If a person does not comply with a direction under subsection (2) within:

                     (a)  the period specified in the direction; or

                     (b)  such longer period as the Titles Administrator allows;

the responsible Commonwealth Minister may do any or all of the things r