[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
2013
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Offshore Petroleum and Greenhouse Gas
Storage Amendment (Cash Bidding) Bill
2013
No. , 2013
(Industry)
A Bill for an Act to amend the Offshore Petroleum
and Greenhouse Gas Storage Act 2006, and for
related purposes
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedule(s) ........................................................................................ 2
Schedule 1--Cash-bid petroleum exploration permits
3
Offshore Petroleum and Greenhouse Gas Storage Act 2006
3
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
1
A Bill for an Act to amend the Offshore Petroleum
1
and Greenhouse Gas Storage Act 2006, and for
2
related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Offshore Petroleum and Greenhouse
6
Gas Storage Amendment (Cash Bidding) Act 2013.
7
2 Commencement
8
This Act commences on the day after this Act receives the Royal
9
Assent.
10
2
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
No. , 2013
3 Schedule(s)
1
Each Act that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
Cash-bid petroleum exploration permits Schedule 1
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
3
Schedule 1
--
Cash-bid petroleum exploration
1
permits
2
3
Offshore Petroleum and Greenhouse Gas Storage Act 2006
4
1 Section 110 (heading)
5
Repeal the heading, substitute:
6
110 Cash-bid petroleum exploration permit--application
7
2 Paragraph 110(1)(a)
8
Repeal the paragraph, substitute:
9
(a) invite applications for the grant by the Joint Authority of a
10
petroleum exploration permit by way of cash bidding over
11
the block or blocks specified in the notice; and
12
3 Paragraph 110(3)(c)
13
Repeal the paragraph, substitute:
14
(c) specify the matters that the Joint Authority will take into
15
account in deciding under section 111 whether to invite the
16
applicant to make a cash bid.
17
4 After subsection 110(3)
18
Insert:
19
Reserve price
20
(3A) Before publishing a notice under subsection (1), the Joint Authority
21
must, in writing, determine a reserve price for the grant of the
22
permit.
23
(3B) A notice under subsection (1) may specify the reserve price so
24
determined, but does not need to do so.
25
(3C) A determination under subsection (3A) is not a legislative
26
instrument.
27
Schedule 1 Cash-bid petroleum exploration permits
4
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
No. , 2013
More than one block
1
5 Subsection 110(6)
2
Repeal the subsection (not including the notes), substitute:
3
(6) An application under this section must be accompanied by details
4
of:
5
(a) the technical qualifications of the applicant and of the
6
applicant's employees; and
7
(b) the technical advice available to the applicant; and
8
(c) the financial resources available to the applicant.
9
6 Sections 111 and 112
10
Repeal the sections, substitute:
11
111 Cash-bid petroleum exploration permit--cash bids
12
Invitations to make a cash bid
13
(1) For each application for a cash-bid petroleum exploration permit in
14
accordance with a notice under subsection 110(1), the Joint
15
Authority must, taking into account the matters specified in the
16
notice under paragraph 110(3)(c), by written notice to each
17
applicant:
18
(a) invite the applicant (an eligible applicant) to make a cash bid
19
for the grant of the permit within a period stated in the
20
invitation; or
21
(b) reject the application.
22
How to make a cash bid
23
(2) An eligible applicant may make a single cash bid in response to the
24
invitation under subsection (1) by written notice to the Joint
25
Authority:
26
(a) given within the period stated in the invitation; and
27
(b) specifying an amount (the cash bid) the applicant would be
28
prepared to pay for the grant of a permit; and
29
(c) accompanied by a deposit of 10% of the cash bid.
30
Note 1:
A cash bid must be made in an approved manner (see section 255).
31
Cash-bid petroleum exploration permits Schedule 1
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
5
Note 2:
The Joint Authority can only make an offer of the grant of a permit to
1
an applicant at a price that is equal to or higher than the reserve price
2
(see sections 112 and 112A). The reserve price may be specified in the
3
notice under subsection 110(1), but it need not be (see
4
subsection 110(3B)).
5
(3) A deposit accompanying a notice under subsection (2) is taken to
6
be paid to the Titles Administrator on behalf of the
7
Commonwealth.
8
Lapsed applications
9
(4) If an eligible applicant does not respond to the invitation in
10
accordance with subsection (2), the application lapses.
11
112 Cash-bid petroleum exploration permit--cash bids less than the
12
reserve price
13
Scope
14
(1) This section applies to an eligible applicant for the grant of a
15
cash-bid petroleum exploration whose cash bid under section 111
16
is less than the reserve price determined under section 110 for the
17
grant of the permit.
18
Note:
The reserve price may be specified in the notice under
19
subsection 110(1) in relation to the grant of the permit, but it need not
20
be (see subsection 110(3B)).
21
Rejection of applications generally
22
(2) The Joint Authority must reject the application by written notice to
23
the applicant unless:
24
(a) the reserve price is not specified in the notice under
25
subsection 110(1); and
26
(b) the applicant's cash bid is:
27
(i) the only cash bid, or the highest cash bid, for the grant
28
of the permit that is less than the reserve price; or
29
(ii) equal to one or more other cash bids which are the only
30
cash bids, or the highest cash bids, for the grant of the
31
permit that are less than the reserve price.
32
Note:
Applications to which paragraphs (a) and (b) apply may be rejected
33
under subsection (3) of this section, or following the grant of the
34
Schedule 1 Cash-bid petroleum exploration permits
6
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
No. , 2013
permit to another applicant under section 113. They may also lapse
1
under section 260A if the applicant fails to respond to an offer made
2
under subsection (3) of this section.
3
Offer of grant of permit at reserve price
4
(3) The following table applies if:
5
(a) the reserve price is not specified in the notice under
6
subsection 110(1); and
7
(b) the only cash bids for the grant of the permit made under
8
section 111 are less than the reserve price.
9
10
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
11
example, a requirement that an offer document must contain a
12
summary of conditions).
13
Cash-bid petroleum exploration permits Schedule 1
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
7
Note 2:
If an applicant breaches a requirement under section 258 to provide
1
further information, the Joint Authority may refuse to give the
2
applicant an offer document.
3
(4) In considering whether to give an offer document to an applicant
4
under subsection (3), the Joint Authority must have regard to the
5
difference between the applicant's cash bid and the reserve price.
6
Refund of deposit to rejected applicants
7
(5) If the Joint Authority rejects an application under this section, the
8
Titles Administrator, on behalf of the Commonwealth, must refund
9
to the applicant an amount equal to the applicant's deposit under
10
section 111.
11
112A Cash-bid petroleum exploration permit--highest cash bids at
12
or over the reserve price
13
Scope
14
(1) This section applies in relation to a cash bid (a qualifying cash bid)
15
under section 111 by an eligible applicant for the grant of a
16
cash-bid petroleum exploration permit that is equal to or higher
17
than the reserve price determined under section 110.
18
Issue of offer documents etc.
19
(2) The following table sets out the circumstances in which the Joint
20
Authority must give an offer document, or an invitation to make a
21
tie-breaking cash bid, to an eligible applicant who makes a
22
qualifying cash bid.
23
24
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
invite each tied applicant, by written
notice (a tie-breaking invitation), to
Schedule 1 Cash-bid petroleum exploration permits
8
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
No. , 2013
Issue of offer documents or tie-breaking invitations
Item
If ...
the Joint Authority must ...
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
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
1
example, a requirement that an offer document must contain a
2
summary of conditions).
3
Note 2:
If an applicant breaches a requirement under section 258 to provide
4
further information, the Joint Authority may refuse to give the
5
applicant an offer document.
6
112B Cash-bid petroleum exploration permit--tie-breaking
7
invitation
8
Scope
9
(1) This section applies if the Joint Authority, under section 112A,
10
makes a tie-breaking invitation to 2 or more tied applicants for the
11
grant of a cash-bid petroleum exploration permit.
12
Responses to the tie-breaking invitation
13
(2) Before the end of the period stated in the tie-breaking invitation, a
14
tied applicant may, by written notice to the Joint Authority, make a
15
further cash bid (a tie-breaking cash bid) higher than the
16
applicant's previous cash bid.
17
Note:
A tie-breaking cash bid must be made in an approved manner (see
18
section 255).
19
(3) The following table sets out the process for dealing with responses
20
(if any) to the tie-breaking invitation.
21
22
Responses to the tie-breaking invitation
Item
If ...
then ...
1
a tied applicant makes a tie-breaking
the Joint Authority must give a
Cash-bid petroleum exploration permits Schedule 1
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
9
Responses to the tie-breaking invitation
Item
If ...
then ...
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
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
1
example, a requirement that an offer document must contain a
2
summary of conditions).
3
Note 2:
If an applicant breaches a requirement under section 258 to provide
4
further information, the Joint Authority may refuse to give the
5
applicant an offer document.
6
7 Section 113 (heading)
7
Repeal the heading, substitute:
8
113 Cash-bid petroleum exploration permit--grant
9
8 Paragraph 113(1)(a)
10
Omit "111 or 112", substitute "112, 112A or 112B".
11
9 Paragraph 113(1)(c)
12
Repeal the paragraph, substitute:
13
Schedule 1 Cash-bid petroleum exploration permits
10
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
No. , 2013
(c) the applicant has, within the applicable period under
1
section 260, paid to the Titles Administrator, on behalf of the
2
Commonwealth, the amount specified in the offer document
3
as the balance of the permit price;
4
10 Subsection 113(2)
5
Repeal the subsection, substitute:
6
(2) If the Joint Authority grants a petroleum exploration permit to an
7
applicant under subsection (1):
8
(a) the Joint Authority must reject all other applications for the
9
permit (other than those that have already been rejected, or
10
have lapsed), by written notice to each of those applicants
11
(each rejected applicant); and
12
(b) the Titles Administrator, on behalf of the Commonwealth,
13
must refund to each rejected applicant an amount equal to the
14
rejected applicant's deposit under section 111.
15
Note 1:
An application may have already been rejected under section 111 (if
16
the applicant is not invited to make a cash bid) or 112 (if the
17
applicant's cash bid is less than the reserve price).
18
Note 2:
An application may have already lapsed under section 111 (if the
19
applicant fails to respond to a cash-bid invitation) or 260A (if the
20
applicant fails to respond to an offer).
21
11 Section 255 (heading)
22
Repeal the heading, substitute:
23
255 Application and cash bid to be made in an approved manner
24
12 After subsection 255(1)
25
Insert:
26
(1A) This section also applies to a cash bid, or a tie-breaking cash bid,
27
made under section 111 or 112B for the grant of a petroleum
28
exploration permit.
29
13 Subsection 255(2)
30
After "application", insert ", cash bid or tie-breaking cash bid".
31
Cash-bid petroleum exploration permits Schedule 1
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
11
14 Paragraphs 259(3)(a) and (b)
1
Repeal the paragraphs, substitute:
2
(a) specify, as the permit price:
3
(i) the amount of the cash bid, or tie-breaking cash bid, in
4
relation to which the offer document is given; or
5
(ii) in the case of an offer document given under
6
section 112--the amount of the reserve price
7
determined under section 110 for the grant of the
8
permit; and
9
(b) specify, as the balance of the permit price, an amount equal
10
to the difference between the permit price and the deposit
11
given by the applicant under section 111; and
12
(c) contain a statement to the effect that if the applicant does not
13
pay the balance of the permit price to the Commonwealth
14
within the period allowed for making a request under
15
section 260:
16
(i) the application will lapse; and
17
(ii) except in the case of an offer document given under
18
section 112--the applicant's deposit will be forfeited to
19
the Titles Administrator on behalf of the
20
Commonwealth.
21
Note:
An offer document may be given under section 112 for the grant of a
22
permit at the reserve price to an applicant whose cash bid is less than
23
the reserve price.
24
15 Subsection 260(1) (table item 2)
25
Omit "30 days", substitute "14 days".
26
16 Subsection 260(4)
27
After "item of the table", insert ", except item 2,".
28
17 At the end of subsection 260(4)
29
Add:
30
Note:
For the failure to request the grant of cash-bid petroleum exploration
31
permits under item 2 of the table, or the failure to pay for such
32
permits, see section 260A.
33
Schedule 1 Cash-bid petroleum exploration permits
12
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
No. , 2013
18 After section 260
1
Insert:
2
260A Cash-bid petroleum exploration permits--failure to respond
3
to offer
4
Scope
5
(1) This section applies if:
6
(a) an offer document has been given to an applicant (the
7
non-responding applicant) for the grant of a cash-bid
8
petroleum exploration permit who has made a cash bid, or a
9
tie-breaking cash bid, for the grant of the permit; and
10
(b) at the end of the applicable period under section 260, the
11
non-responding applicant:
12
(i) has not made a request under that section; or
13
(ii) has not paid the amount specified in the offer document
14
as the balance of the permit price that the applicant must
15
pay for the permit.
16
Lapse of application and forfeit of deposit
17
(2) At the end of the applicable period:
18
(a) the application lapses; and
19
(b) unless the offer document was given under section 112--an
20
amount equal to the non-responding applicant's deposit under
21
section 111 is forfeited to the Commonwealth; and
22
(c) if the offer document was given under section 112--the
23
Titles Administrator, on behalf of the Commonwealth, must
24
refund to the non-responding applicant an amount equal to
25
that applicant's deposit under section 111.
26
Further offers
27
(3) The following table requires or allows an offer document to be
28
given to an applicant other than the non-responding applicant by
29
applying sections 112, 112A and 112B as if applicants whose
30
applications have lapsed or been rejected (lapsed or rejected
31
applicants), including the non-responding applicant, had not made
32
cash bids.
33
Cash-bid petroleum exploration permits Schedule 1
No. , 2013
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
13
1
Further offers
Item
If ...
then, at the end of the applicable
period ...
1
there are any cash bids for the
permit remaining at the end of the
applicable period (apart from those
made by lapsed or rejected
applicants) that are equal to or
higher than the reserve price
determined under section 110
sections 112A and 112B apply as if
the lapsed or rejected applicants had
not made cash bids under
section 111.
2
(a) the reserve price determined
under section 110 for the grant of
the permit is not specified in the
notice under subsection 110(1);
and
(b) the only remaining cash bids
under section 111 (apart from
those made by lapsed or rejected
applicants) are less than the
reserve price
section 112 applies as if the lapsed
or rejected applicants had not made
cash bids under section 111.
Note:
Sections 112, 112A and 112B set out the circumstances in which the
2
Joint Authority may, or must, give an offer document to an applicant
3
for a cash-bid petroleum exploration permit.
4
19 Section 261 (heading)
5
Repeal the heading, substitute:
6
261 Special petroleum exploration permits and s 181 petroleum
7
production licences--failure to pay
8
20 Subsection 261(1)
9
Repeal the subsection.
10
21 Subsection 261(2) (heading)
11
Repeal the heading.
12
22 Subsection 261(2)
13
Omit "(2) If:", substitute "If:".
14
Schedule 1 Cash-bid petroleum exploration permits
14
Offshore Petroleum and Greenhouse Gas Storage Amendment (Cash
Bidding) Bill 2013
No. , 2013
23 Section 695K (heading)
1
Repeal the heading, substitute:
2
695K Purposes of the Account and transfers to general CRF
3
24 Section 695K
4
Before "The purposes", insert "(1)".
5
25 At the end of section 695K
6
Add:
7
(2) The following amounts must be debited from the Account:
8
(a) if a cash-bid petroleum exploration permit is granted to an
9
applicant in accordance with section 113--an amount equal
10
to the amount specified as the permit price in the offer
11
document given to the applicant;
12
(b) if a deposit paid by an applicant for the grant of a cash-bid
13
petroleum exploration permit is forfeited to the
14
Commonwealth under subsection 260A(2)--an amount equal
15
to the amount of the deposit.
16
Note 1:
Amounts equal to the amounts mentioned in this subsection are paid
17
into the Special Account under section 695J. The effect of this
18
subsection is to transfer those amounts from the Special Account to
19
the general Consolidated Revenue Fund.
20
Note 2:
Subsection 260A(2) provides for a deposit made by an applicant for
21
the grant of a permit to be forfeited to the Commonwealth if the
22
applicant fails to respond to an offer for the grant of the permit.
23
26 After paragraph 695M(1)(a)
24
Insert:
25
(aa) a cash-bid petroleum exploration permit; and
26
[Index] [Search] [Download] [Related Items] [Help]