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This is a Bill, not an Act. For current law, see the Acts databases.
OFFSHORE PETROLEUM BILL 2005
2004-2005
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Offshore Petroleum Bill 2005
No. , 2005
(Industry, Tourism and Resources)
A Bill for an Act about offshore petroleum, and for
other purposes
i Offshore Petroleum Bill 2005 No. , 2005
Contents
Chapter 1--Introduction
1
Part 1.1--Legislative formalities and background
1
1
Short title.......................................................................................1
2
Commencement .............................................................................2
3
Simplified outline ..........................................................................3
4
Commonwealth-State agreement (the Offshore
Constitutional Settlement) ..............................................................4
5
Simplified maps.............................................................................7
Part 1.2--Interpretation
13
Division 1--General
13
6
Definitions...................................................................................13
7
Offshore areas..............................................................................25
8
Spaces above and below offshore areas.........................................28
9
Term of titles ...............................................................................28
10
Renewal of titles ..........................................................................29
11
Variation of titles .........................................................................30
12
Vacated area ................................................................................31
13
Infrastructure facilities .................................................................32
14
Terminal station...........................................................................33
15
Extended meaning of explore .......................................................33
16
Graticulation of Earth's surface and constitution of blocks.............33
17
External Territories ......................................................................36
18
Application of Act........................................................................36
19
Certain pipelines provisions to apply subject to international
obligations...................................................................................37
Division 2--Datum provisions
38
Subdivision A--Datum for ascertaining the position of points etc.
38
20
Objects ........................................................................................38
21
Definitions...................................................................................38
22
Australian Geodetic Datum ..........................................................38
23
Current datum, previous datum and changeover time.....................39
24
Use of current datum....................................................................39
25
Use of previous datum..................................................................40
26
Variation of titles and instruments ................................................41
27
Variation of applications for titles.................................................42
28
No change to actual position of point, line or area .........................43
29
Transitional regulations................................................................43
Offshore Petroleum Bill 2005 No. , 2005 ii
30
International Seabed Agreements..................................................43
Subdivision B--Certain points etc. specified in an International
Seabed Agreement to be ascertained by other
means
43
31
Certain points etc. specified in an International Seabed
Agreement to be ascertained by other means.................................43
Division 3--Apportionment of petroleum recovered from
adjoining title areas
45
32
Title.............................................................................................45
33
Titleholder and title area...............................................................45
34
Petroleum recovered through inclined well....................................45
35
Petroleum pool straddling 2 title areas etc. ....................................46
36
Petroleum pool straddling Commonwealth title area and
State title area etc.........................................................................46
37
Unit development.........................................................................47
Part 1.3--Joint Authorities and Designated Authorities
49
Division 1--Joint Authorities
49
38
Joint Authorities...........................................................................49
39
Functions and powers of Joint Authorities.....................................50
40
Procedure of Joint Authority.........................................................50
41
Decision-making..........................................................................50
42
Opinion or state of mind of Joint Authority...................................51
43
Records of decisions of Joint Authority.........................................51
44
Signing of documents...................................................................52
45
Communications with Joint Authority...........................................52
46
Judicial notice of signature of member of a Joint Authority ...........52
47
Issue of documents, and service of notices, on behalf of Joint
Authority .....................................................................................53
48
Delegation by a Joint Authority for a State or the Northern
Territory ......................................................................................54
49
Delegation by Joint Authority for an external Territory .................55
Division 2--Designated Authorities
57
50
Designated Authorities.................................................................57
51
Functions and powers of Designated Authorities ...........................57
52
Delegation by Designated Authority .............................................58
53
Judicial notice of signature of Designated Authority......................59
Division 3--Finance
60
54
Payments by the Commonwealth to Western Australia--
Royalty Act payments ..................................................................60
iii Offshore Petroleum Bill 2005 No. , 2005
55
Payments by the Commonwealth to the States and the
Northern Territory........................................................................61
56
Appropriation ..............................................................................63
Part 1.4--Application of State and Territory laws in offshore
areas
64
57
Simplified outline ........................................................................64
58
Meaning of laws ..........................................................................64
59
Application of State and Territory laws in offshore areas...............64
60
Disapplication and modification of laws .......................................66
61
Limit on application of laws .........................................................66
62
Inconsistent law not applied .........................................................66
63
Criminal laws not applied.............................................................67
64
Tax laws not applied ....................................................................67
65
Appropriation law not applied ......................................................67
66
Applied laws not to confer Commonwealth judicial power ............67
67
Applied laws not to contravene constitutional restrictions on
conferral of powers on courts........................................................67
68
State or Northern Territory occupational health and safety
laws do not apply in relation to facilities .......................................67
69
Gas pipelines access legislation ....................................................70
70
No limits on ordinary operation of law..........................................71
71
Jurisdiction of State courts............................................................71
72
Jurisdiction of Territory courts......................................................71
73
Validation of certain acts..............................................................71
74
Certain provisions not affected by this Part ...................................72
Chapter 2--Regulation of activities relating to
petroleum
73
Part 2.1--Introduction
73
75
Simplified outline ........................................................................73
Part 2.2--Exploration permits
75
Division 1--General provisions
75
76
Simplified outline ........................................................................75
77
Prohibition of unauthorised exploration for petroleum in
offshore area................................................................................76
78
Rights conferred by exploration permit .........................................76
79
Conditions of exploration permits.................................................76
80
Duration of exploration permit......................................................78
Offshore Petroleum Bill 2005 No. , 2005 iv
81
Extension of exploration permit if permittee applies for
retention lease or production licence .............................................79
Division 2--Obtaining a work-bid exploration permit
81
82
Application for work-bid exploration permit--advertising of
blocks..........................................................................................81
83
Grant of work-bid exploration permit--offer document.................82
84
Ranking of multiple applicants for work-bid exploration
permit..........................................................................................83
85
Grant of work-bid exploration permit............................................85
86
Withdrawal of application ............................................................85
87
Effect of withdrawal or lapse of application ..................................86
Division 3--Obtaining a cash-bid exploration permit
88
88
Application for cash-bid exploration permit ..................................88
89
Grant of cash-bid exploration permit--only one application ..........89
90
Grant of cash-bid exploration permit--2 or more
applications..................................................................................90
91
Grant of cash-bid exploration permit.............................................92
92
Extension of cash-bid exploration permit ......................................93
Division 4--Obtaining a special exploration permit over a
surrendered block or certain other blocks
95
93
Application for a special exploration permit over a
surrendered block or certain other blocks ......................................95
94
Grant of special exploration permit--only one application.............97
95
Grant of special exploration permit--2 or more applications..........97
96
Grant of special exploration permit.............................................100
Division 5--Renewal of exploration permits
101
97
Application for renewal of exploration permit .............................101
98
Non-renewable cash-bid exploration permits...............................102
99
Limit on renewal of cash-bid exploration permits........................102
100
Limits on renewal of work-bid exploration permits and
special exploration permits.........................................................102
101
Standard halving rules................................................................104
102
Modified halving rules ...............................................................105
103
Renewal of exploration permit--offer document.........................106
104
Refusal to renew exploration permit............................................107
105
Renewal of exploration permit....................................................107
Division 6--Locations
109
106
Simplified outline ......................................................................109
107
Nomination of blocks as a location .............................................109
108
Requirement to nominate blocks as a location .............................110
v Offshore Petroleum Bill 2005 No. , 2005
109
Declaration of location ...............................................................111
110
Revocation of declaration...........................................................112
111
Variation of declaration..............................................................114
Part 2.3--Retention leases
116
Division 1--General provisions
116
112
Simplified outline ......................................................................116
113
Rights conferred by retention lease .............................................116
114
Conditions of retention leases.....................................................117
115
Duration of retention lease..........................................................118
116
Extension of retention lease if lessee applies for production
licence.......................................................................................119
Division 2--Obtaining a retention lease
120
Subdivision A--Application for retention lease by the holder of an
exploration permit
120
117
Application for retention lease by the holder of an
exploration permit......................................................................120
118
Grant of retention lease--offer document....................................121
119
Refusal to grant retention lease...................................................121
120
Grant of retention lease ..............................................................122
121
Exploration permit ceases to be in force when retention lease
comes into force.........................................................................122
122
Exploration permit transferred--transferee to be treated as
applicant....................................................................................123
Subdivision B--Application for retention lease by the holder of a
life-of-field production licence
123
123
Application for retention lease by the holder of a life-of-field
production licence......................................................................123
124
Grant of retention lease--offer document....................................124
125
Refusal to grant retention lease...................................................125
126
Grant of retention lease ..............................................................125
127
Production licence ceases to be in force when retention lease
comes into force.........................................................................125
128
Production licence transferred--transferee to be treated as
applicant....................................................................................126
Division 3--Renewal of retention leases
127
129
Application for renewal of retention lease ...................................127
130
Renewal of retention lease--offer document...............................128
131
Refusal to renew retention lease..................................................130
132
Renewal of retention lease..........................................................132
Offshore Petroleum Bill 2005 No. , 2005 vi
Division 4--Revocation of retention leases
133
133
Notice of proposal to revoke retention lease................................133
134
Revocation of retention lease......................................................134
Part 2.4--Production licences
136
Division 1--General provisions
136
135
Simplified outline ......................................................................136
136
Prohibition of unauthorised recovery of petroleum in
offshore area..............................................................................137
137
Rights conferred by production licence .......................................137
138
Conditions of production licences...............................................137
139
Duration of production licence....................................................139
140
Termination of life-of-field production licence if no recovery
operations for 5 years .................................................................141
141
Production licences to which the Royalty Act applies..................142
Division 2--Obtaining a production licence as a result of an
application made by an exploration permittee or a
retention lessee
143
142
Application for production licence by permittee ..........................143
143
Application period .....................................................................144
144
Application for production licence by lessee ...............................145
145
Offer document..........................................................................145
146
Refusal to grant production licence.............................................146
147
Grant of production licence ........................................................147
148
Exploration permit or retention lease ceases to be in force
when production licence comes into force...................................148
149
Exploration permit or retention lease transferred--transferee
to be treated as applicant ............................................................148
Division 3--Obtaining a cash-bid production licence over a
surrendered block or similar block
150
150
Application for cash-bid production licence over surrendered
blocks or similar blocks..............................................................150
151
Grant of cash-bid production licence--only one application ........151
152
Grant of cash-bid production licence--2 or more
applications................................................................................152
153
Grant of cash-bid production licence...........................................154
Division 4--Obtaining production licences over individual
blocks
156
154
Applications for production licences over individual blocks.........156
155
Grant of production licences over individual blocks ....................156
vii Offshore Petroleum Bill 2005 No. , 2005
Division 5--Renewal of fixed-term production licences
158
156
Application for renewal of fixed-term production licence ............158
157
Renewal of fixed-term production licence--offer document ........159
158
Refusal to renew fixed-term production licence...........................161
159
Renewal of fixed-term production licence...................................162
Division 6--What happens if a block is not taken up
163
160
Revocation of exploration permit or retention lease to the
extent to which it relates to a block not taken up..........................163
Division 7--Petroleum field development
165
Subdivision A--Directions about the recovery of petroleum
165
161
Direction to recover petroleum ...................................................165
162
Directions about the rate of recovery of petroleum ......................165
Subdivision B--Unit development
166
163
Unit development.......................................................................166
Part 2.5--Infrastructure licences
171
Division 1--General provisions
171
164
Simplified outline ......................................................................171
165
Prohibition of unauthorised construction or operation of an
infrastructure facility in an offshore area.....................................171
166
Rights conferred by an infrastructure licence...............................172
167
Conditions of infrastructure licences...........................................172
168
Duration of infrastructure licence................................................172
169
Termination of infrastructure licence if no operations for 5
years..........................................................................................173
Division 2--Obtaining an infrastructure licence
175
170
Application for infrastructure licence..........................................175
171
Grant of infrastructure licence--offer document..........................175
172
Refusal to grant infrastructure licence.........................................175
173
Grant of infrastructure licence ....................................................176
174
Consultation--grant of infrastructure licence ..............................176
Division 3--Varying an infrastructure licence
179
175
Application for variation of infrastructure licence........................179
176
Variation of infrastructure licence...............................................179
177
Consultation--variation of infrastructure licence.........................180
Part 2.6--Pipeline licences
182
Division 1--General provisions
182
178
Simplified outline ......................................................................182
Offshore Petroleum Bill 2005 No. , 2005 viii
179
Prohibition of unauthorised construction or operation of a
pipeline in an offshore area.........................................................182
180
Rights conferred by pipeline licence ...........................................185
181
Conditions of pipeline licences ...................................................185
182
Duration of pipeline licence........................................................186
183
Termination of pipeline licence if no operations for 5 years .........186
184
Alteration or removal of pipeline constructed in breach of
this Act......................................................................................188
Division 2--Obtaining a pipeline licence
190
185
Application for pipeline licence ..................................................190
186
Rights of production licensees following application for
pipeline licences by other persons...............................................191
187
Grant of pipeline licence--offer document..................................192
188
Refusal to grant pipeline licence .................................................194
189
Grant of pipeline licence ............................................................195
Division 3--Varying a pipeline licence
196
190
Variation of pipeline licence on application by licensee...............196
191
Variation of pipeline licence at the request of a Minister or a
statutory body ............................................................................197
Division 4--Pipeline operation
199
192
Common carrier.........................................................................199
193
Ceasing to operate pipeline without consent................................200
Part 2.7--Special prospecting authorities
201
Division 1--General provisions
201
194
Simplified outline ......................................................................201
195
Rights conferred by special prospecting authority........................201
196
Conditions of special prospecting authorities...............................201
197
Duration of special prospecting authority....................................202
198
Special prospecting authority cannot be transferred .....................202
Division 2--Obtaining a special prospecting authority
203
199
Application for special prospecting authority ..............................203
200
Grant or refusal of special prospecting authority..........................203
201
Holders to be informed of the grant of another special
prospecting authority..................................................................203
Part 2.8--Access authorities
205
Division 1--General provisions
205
202
Simplified outline ......................................................................205
203
Rights conferred by access authority...........................................205
ix Offshore Petroleum Bill 2005 No. , 2005
204
Conditions of access authorities..................................................205
205
Duration of access authority .......................................................206
Division 2--Obtaining an access authority
207
206
Application for access authority..................................................207
207
Grant or refusal of access authority.............................................208
208
Consultation--grant of access authority in same offshore
area ...........................................................................................208
209
Consultation--approval of grant of access authority in
adjoining offshore area...............................................................210
Division 3--Variation of access authorities
211
210
Variation of access authority ......................................................211
211
Consultation--variation of access authority in same offshore
area ...........................................................................................211
212
Consultation--approval of variation of access authority in
adjoining offshore area...............................................................212
Division 4--Reporting obligations of holders of access
authorities
214
213
Reporting obligations of holders of access authorities..................214
Division 5--Revocation of access authorities
215
214
Revocation of access authority....................................................215
Part 2.9--Scientific investigation consents
216
215
Simplified outline ......................................................................216
216
Rights conferred by scientific investigation consent ....................216
217
Conditions of scientific investigation consents ............................216
218
Grant of scientific investigation consent......................................216
Part 2.10--Standard procedures
218
219
Application to be made in an approved manner ...........................218
220
Application fee ..........................................................................218
221
Application may set out additional matters..................................219
222
Designated Authority may require further information.................220
223
Offer documents ........................................................................222
224
Acceptance of offer--request by applicant..................................223
225
Acceptance of offer--payment ...................................................227
226
Consultation--adverse decisions ................................................227
Offshore Petroleum Bill 2005 No. , 2005 x
Part 2.11--Variation, suspension and exemption
230
Division 1--Variation, suspension and exemption decisions
relating to exploration permits, retention leases,
production licences, infrastructure licences and
pipeline licences
230
227
Variation, suspension and exemption--conditions of titles ..........230
228
Extension of term of exploration permit or retention lease--
suspension or exemption ............................................................232
229
Suspension of rights--exploration permit or retention lease.........233
230
Extension of term of exploration permit or retention lease--
suspension of rights....................................................................233
Division 2--Variation, suspension and exemption decisions
relating to special prospecting authorities and
access authorities
235
231
Variation, suspension and exemption--conditions of special
prospecting authorities and access authorities..............................235
Part 2.12--Surrender of titles
237
Division 1--Surrender of exploration permits, production
licences, retention leases, infrastructure licences and
pipeline licences
237
232
Application for consent to surrender title.....................................237
233
Consent to surrender title............................................................237
234
Surrender of title ........................................................................240
Division 2--Surrender of special prospecting authorities and
access authorities
242
235
Surrender of special prospecting authority...................................242
236
Surrender of access authority......................................................242
Part 2.13--Cancellation of titles
243
Division 1--Cancellation of exploration permits, production
licences, retention leases, infrastructure licences and
pipeline licences
243
237
Grounds for cancellation of title..................................................243
238
Cancellation of title....................................................................243
239
Consultation ..............................................................................244
240
Cancellation of title not affected by other provisions ...................245
Division 2--Cancellation of special prospecting authorities
248
241
Cancellation of special prospecting authority ..............................248
xi Offshore Petroleum Bill 2005 No. , 2005
Part 2.14--Other provisions
249
242
Reservation of blocks.................................................................249
243
Interference with other rights......................................................250
244
No conditions about payment of money ......................................251
245
Certain portions of blocks to be blocks........................................251
246
Changes to, or reassessment of the location of, the baseline
of Australia's territorial sea ........................................................253
247
Notification of discovery of petroleum........................................255
248
Property in petroleum.................................................................255
249
Compensation for acquisition of property....................................256
Chapter 3--Registration and dealings
258
Part 3.1--Introduction
258
250
Simplified outline ......................................................................258
251
Definition ..................................................................................258
252
Dealing--series of debentures ....................................................258
Part 3.2--Register of titles and special prospecting authorities
259
253
Register to be kept .....................................................................259
254
Entries in Register--general.......................................................259
255
Entry in Register--cessation, revocation or expiry of title ...........261
Part 3.3--Transfer of titles
262
256
Approval and registration of transfers .........................................262
257
Application for approval of transfer ............................................262
258
Documents to accompany application .........................................262
259
Time limit for application...........................................................263
260
Date of application to be entered in Register ...............................263
261
Approval of transfer ...................................................................263
262
Registration of transfer...............................................................264
263
Instrument of transfer does not create an interest in the title.........265
264
Limit on effect of approval of transfers .......................................265
Part 3.4--Devolution of title
266
265
Application to have name entered on the Register as the
holder of a title...........................................................................266
266
Entry of name in the Register .....................................................266
Part 3.5--Change in name of company
267
267
Application to have new name entered on the Register ................267
268
Alteration in the Register............................................................267
Offshore Petroleum Bill 2005 No. , 2005 xii
Part 3.6--Dealings relating to existing titles
268
269
Dealings to which this Part applies .............................................268
270
Approval and registration of dealings..........................................269
271
Application for approval of dealing.............................................269
272
Documents to accompany application .........................................270
273
Timing of application.................................................................271
274
Application date to be entered in Register ...................................272
275
Approval of dealing ...................................................................272
276
Entry of dealing in Register........................................................273
277
Retention, inspection and return of instruments ...........................273
278
Strict compliance with application provisions not required ..........274
279
Limit on effect of approval of dealing.........................................275
Part 3.7--Dealings in future interests
276
280
Provisional application for approval of dealing............................276
281
Documents to accompany provisional application .......................276
282
Timing of provisional application ...............................................278
283
Provisional application to be treated as an application under
section 271 when title comes into existence ................................278
284
Limit on approval of dealing.......................................................279
Part 3.8--Correction and rectification of Register
280
285
Corrections of clerical errors or obvious defects..........................280
286
General power of correction of Register......................................280
287
Rectification of Register.............................................................281
Part 3.9--Information-gathering powers
283
288
Designated Authority may obtain information from
applicants ..................................................................................283
289
Designated Authority may obtain information from a party to
an approved dealing ...................................................................284
290
Production and inspection of documents .....................................285
291
Designated Authority may retain documents ...............................287
Part 3.10--Other provisions
288
292
Designated Authority etc. not concerned with the effect of
instrument lodged under this Chapter..........................................288
293
True consideration to be shown ..................................................288
294
Making a false entry in a Register...............................................289
295
Falsified documents ...................................................................289
296
Inspection of Register and instruments........................................290
297
Evidentiary provisions................................................................290
298
Assessment of fee ......................................................................292
xiii Offshore Petroleum Bill 2005 No. , 2005
Chapter 4--Administration
294
Part 4.1--Operations
294
299
Simplified outline ......................................................................294
300
Commencement of works or operations ......................................294
301
Work practices...........................................................................295
302
Insurance ...................................................................................297
303
Maintenance and removal of property etc. by titleholder..............299
Part 4.2--Directions
301
Division 1--Simplified outline
301
304
Simplified outline ......................................................................301
Division 2--General power to give directions
302
305
General power to give directions.................................................302
306
Notification of a direction that has an extended application..........304
307
Compliance with direction..........................................................305
Division 3--Designated Authority may take action if there is a
breach of a direction
307
308
Designated Authority may take action if there is a breach of
a direction..................................................................................307
Division 4--Defence of taking reasonable steps to comply with a
direction
309
309
Defence of taking reasonable steps to comply with a
direction ....................................................................................309
Part 4.3--Restoration of the environment
310
310
Simplified outline ......................................................................310
311
Remedial directions to current holders of permits, leases and
licences......................................................................................310
312
Remedial directions to former holders of permits, leases,
licences and authorities etc. ........................................................312
313
Designated Authority may take action if a direction has been
breached ....................................................................................315
314
Removal, disposal or sale of property by Designated
Authority--breach of direction...................................................316
315
Removal, disposal or sale of property--limitation of action
etc. ............................................................................................317
316
Removal, disposal or sale of property--compensation for
acquisition of property ...............................................................318
Part 4.4--Offences and enforcement
320
317
Simplified outline ......................................................................320
Offshore Petroleum Bill 2005 No. , 2005 xiv
318
Appointment of project inspectors ..............................................320
319
Monitoring powers of project inspectors .....................................321
320
Warrants to enter residential premises.........................................324
321
Interfering with offshore petroleum installations or
operations..................................................................................324
322
Forfeiture orders etc. ..................................................................325
323
Time for bringing proceedings for offences.................................326
Part 4.5--Safety zones and the area to be avoided
328
Division 1--Introduction
328
324
Simplified outline ......................................................................328
325
Simplified map of the area to which Schedule 2 applies...............328
326
Definitions.................................................................................329
327
Emergency periods--modification of definition of relevant
vessel.........................................................................................332
328
Authorised persons.....................................................................333
Division 2--Safety zones
335
329
Safety zones...............................................................................335
Division 3--Unauthorised vessel not to enter area to be avoided
337
330
Designated Authority may authorise entry into area to be
avoided......................................................................................337
331
Unauthorised vessel not to enter area to be avoided .....................337
Division 4--Powers of authorised persons
340
332
Requirement to move vessel etc..................................................340
333
Other powers of authorised persons ............................................341
334
Warrants....................................................................................344
335
Exercise of powers in serious circumstances ...............................344
Part 4.6--Collection of fees and royalties
346
Division 1--Fees payable under the Annual Fees Act
346
336
When fee due for payment..........................................................346
337
Late payment penalty .................................................................346
338
Recovery of annual fee debts......................................................347
339
Amounts payable to the Designated Authority.............................347
Division 2--Fees payable under the Registration Fees Act
348
340
Fees payable to the Designated Authority ...................................348
Division 3--Royalties payable under the Royalty Act
349
341
When royalty due for payment....................................................349
342
When adjusted amount due for payment......................................349
343
Late payment penalty .................................................................350
xv Offshore Petroleum Bill 2005 No. , 2005
344
Recovery of royalty debts...........................................................350
345
Amounts payable to the Designated Authority.............................351
Division 4--Fees payable under this Act
352
346
Fees payable under this Act ........................................................352
Part 4.7--Occupational health and safety
353
347
Occupational health and safety ...................................................353
348
Listed OHS laws........................................................................353
349
Regulations relating to occupational health and safety .................354
350
Commonwealth maritime legislation does not apply in
relation to facilities located in offshore areas...............................354
351
Commonwealth maritime legislation does not apply in
relation to facilities located in designated coastal waters..............355
Part 4.8--National Offshore Petroleum Safety Authority
357
Division 1--Introduction
357
352
Simplified outline ......................................................................357
353
Definitions.................................................................................357
354
Designated coastal waters...........................................................360
Division 2--Establishment, functions and powers of the Safety
Authority
362
355
Establishment of the National Offshore Petroleum Safety
Authority ...................................................................................362
356
Safety Authority's functions.......................................................362
357
Policy principles ........................................................................363
358
Safety Authority's ordinary powers ............................................364
359
References to functions and powers of the Safety Authority.........364
360
Safety Authority may be given additional powers in certain
circumstances ............................................................................365
361
Power to refer matters to NOGSAC ............................................366
362
Safety Authority is a body corporate ...........................................366
Division 3--National Offshore Petroleum Safety Authority
Board
368
Subdivision A--Establishment, functions and membership
368
363
Establishment of Board ..............................................................368
364
Functions of the Board ...............................................................368
365
Powers of the Board...................................................................369
366
Membership...............................................................................369
Subdivision B--Board procedures
370
367
Board procedures .......................................................................370
Offshore Petroleum Bill 2005 No. , 2005 xvi
Subdivision C--Terms and conditions for Board members
370
368
Term of appointment and related matters for Board members ......370
369
Remuneration and allowances of Board members........................371
370
Leave of absence of Board members...........................................371
371
Resignation of Board members...................................................371
372
Termination of appointment of Board members...........................371
373
Other terms and conditions of Board members ............................372
374
Acting Board members...............................................................372
Division 4--Chief Executive Officer and staff of the Safety
Authority
374
375
Appointment of the CEO............................................................374
376
Duties of the CEO......................................................................374
377
Working with the Board .............................................................374
378
Remuneration and allowances of the CEO ..................................375
379
Leave of absence of the CEO......................................................375
380
Resignation of the CEO..............................................................375
381
Notification of possible conflict of interest by CEO.....................375
382
Termination of CEO's appointment ............................................376
383
Other terms and conditions.........................................................377
384
Acting appointments ..................................................................377
385
Delegation by CEO ....................................................................378
386
Staff of the Safety Authority.......................................................378
387
Consultants and persons seconded to the Safety Authority...........378
Division 5--Corporate plans
380
388
Corporate plans..........................................................................380
389
Responsible Commonwealth Minister's response to
corporate plan ............................................................................380
Division 6--OHS inspectors
382
390
Appointment of OHS inspectors .................................................382
391
Identity cards .............................................................................382
Division 7--National Offshore Petroleum Safety Account
384
392
National Offshore Petroleum Safety Account..............................384
393
Credits to the Account................................................................384
394
Purposes of the Account.............................................................385
Division 8--Other financial matters
386
395
Fees for expenses incurred by the Safety Authority .....................386
396
Safety investigation levy ............................................................386
397
Safety case levy .........................................................................387
398
Pipeline safety management plan levy.........................................389
xvii Offshore Petroleum Bill 2005 No. , 2005
399
Liability to taxation....................................................................390
Division 9--Miscellaneous
391
400
Annual reports ...........................................................................391
401
Ministers may require the Safety Authority to prepare reports
or give information ....................................................................392
402
Responsible Commonwealth Minister may give directions to
the Safety Authority ...................................................................393
403
Prosecutions by the Director of Public Prosecutions under
mirror provisions........................................................................395
404
Australian Industrial Relations Commission may exercise
powers under mirror provisions ..................................................395
405
Reviews of operations of Safety Authority..................................396
Chapter 5--Information
398
Part 5.1--Data management and gathering of information
398
Division 1--Introduction
398
406
Simplified outline ......................................................................398
Division 2--Data management
399
407
Direction to keep records............................................................399
408
Regulations about data management ...........................................400
Division 3--Information-gathering powers
403
409
Designated Authority or project inspector may obtain
information and documents ........................................................403
410
Copying documents--reasonable compensation..........................405
411
Power to examine on oath or affirmation.....................................405
412
Self-incrimination ......................................................................405
413
Copies of documents..................................................................406
414
Designated Authority or project inspector may retain
documents .................................................................................406
415
False or misleading information..................................................406
416
False or misleading documents ...................................................407
417
False or misleading evidence......................................................407
Part 5.2--Release of regulatory information
408
418
Notifiable events--Gazette notice...............................................408
419
Designated Authority to make documents available to
responsible Commonwealth Minister ..........................................409
Part 5.3--Release of technical information
410
Division 1--Introduction
410
420
Simplified outline ......................................................................410
Offshore Petroleum Bill 2005 No. , 2005 xviii
421
Definitions.................................................................................410
Division 2--Protection of confidentiality of information and
samples
412
Subdivision A--Information and samples obtained by the
Designated Authority
412
422
Protection of confidentiality of documentary information
obtained by the Designated Authority .........................................412
423
Protection of confidentiality of petroleum mining samples
obtained by the Designated Authority .........................................412
424
Designated Authority may make information or samples
available to a Minister, a State Minister or a Northern
Territory Minister ......................................................................413
Subdivision B--Information and samples obtained by a Minister
413
425
Protection of confidentiality of information obtained by a
Minister.....................................................................................413
426
Protection of confidentiality of petroleum mining samples
obtained by a Minister................................................................414
Subdivision C--Miscellaneous
414
427
Fees...........................................................................................414
428
Review by Minister....................................................................415
429
Privacy Act................................................................................415
Division 3--Copyright
416
430
Publishing or making copies of applicable documents not an
infringement of copyright...........................................................416
Division 4--Release of technical information given to the
Designated Authority before 7 March 2000
417
431
Release of technical information given to the Designated
Authority before 7 March 2000...................................................417
Chapter 6--Miscellaneous
418
Part 6.1--Reconsideration and review of decisions
418
432
Simplified outline ......................................................................418
433
Definitions.................................................................................418
434
Reconsideration of reviewable delegated decision .......................419
435
Review of reviewable Ministerial decision..................................421
Part 6.2--Liability for acts and omissions
422
436
Liability for acts and omissions ..................................................422
Part 6.3--Jurisdiction of courts
424
437
Jurisdiction of State courts..........................................................424
xix Offshore Petroleum Bill 2005 No. , 2005
438
Jurisdiction of Territory courts....................................................424
Part 6.4--Service of documents
425
439
Service of documents .................................................................425
440
Service of documents on Joint Authority.....................................427
441
Service of documents on 2 or more registered holders of a
title............................................................................................427
Part 6.5--Publication in Gazette
429
442
Publication in Gazette ................................................................429
Part 6.6--Regulations
430
443
Regulations................................................................................430
444
Regulations dealing with specific matters....................................430
445
Regulations may provide for matters by reference to codes of
practice or standards...................................................................431
446
Unconditional or conditional prohibition.....................................432
447
Exercise of Australia's rights under international law--
continental shelf.........................................................................432
448
Exercise of Australia's rights under international law--
petroleum within territorial limits ...............................................432
449
Offences ....................................................................................432
Part 6.7--Transitional provisions
434
450
Transitional provisions...............................................................434
Schedule 1--Scheduled areas for the States and
Territories
435
1
Scheduled area for New South Wales..........................................435
2
Scheduled area for Victoria ........................................................436
3
Scheduled area for Queensland...................................................437
4
Scheduled area for South Australia .............................................440
5
Scheduled area for Western Australia .........................................441
6
Scheduled area for Tasmania......................................................446
7
Scheduled area for the Northern Territory...................................448
8
Scheduled area for the Territory of Ashmore and Cartier
Islands .......................................................................................450
9
References to this Schedule in other laws....................................453
Schedule 2--Area that includes the area to be avoided
454
1
Area that includes the area to be avoided.....................................454
Offshore Petroleum Bill 2005 No. , 2005 xx
Schedule 3--Occupational health and safety
455
Part 1--Introduction
455
1
Objects ......................................................................................455
2
Simplified outline ......................................................................455
3
Definitions.................................................................................457
4
Facilities....................................................................................461
5
Operator of a facility or proposed facility....................................463
6
Operator must ensure presence of operator's representative .........463
7
Health and safety of persons using an accommodation
facility.......................................................................................464
8
Contractor..................................................................................464
Part 2--Occupational health and safety
465
Division 1--Duties relating to occupational health and safety
465
9
Duties of operator ......................................................................465
10
Duties of persons in control of parts of facility or particular
work ..........................................................................................467
11
Duties of employers ...................................................................469
12
Duties of manufacturers in relation to plant and substances..........470
13
Duties of suppliers of facilities, plant and substances...................472
14
Duties of persons erecting facilities or installing plant .................474
15
Duties of persons in relation to occupational health and
safety.........................................................................................475
16
Reliance on information supplied or results of research ...............476
Division 2--Regulations relating to occupational health and
safety
478
17
Regulations relating to occupational health and safety .................478
Part 3--Workplace arrangements
480
Division 1--Introduction
480
18
Simplified outline ......................................................................480
Division 2--Designated work groups
481
Subdivision A--Establishment of designated work groups
481
19
Establishment of designated work groups by request ...................481
20
Establishment of designated work groups at initiative of
operator .....................................................................................482
Subdivision B--Variation of designated work groups
482
21
Variation of designated work groups by request ..........................482
22
Variation of designated work groups at initiative of operator .......484
xxi Offshore Petroleum Bill 2005 No. , 2005
Subdivision C--General
484
23
Referral of disagreement to reviewing authority ..........................484
24
Manner of grouping members of the workforce...........................485
Division 3--Health and safety representatives
486
Subdivision A--Selection of health and safety representatives
486
25
Selection of health and safety representatives..............................486
26
Election of health and safety representatives ...............................486
27
List of health and safety representatives......................................487
28
Members of designated work group must be notified of
selection etc. of health and safety representative..........................488
29
Term of office............................................................................488
30
Training of health and safety representatives...............................489
31
Resignation etc. of health and safety representatives....................489
32
Disqualification of health and safety representatives....................490
33
Deputy health and safety representatives.....................................491
Subdivision B--Powers of health and safety representatives
492
34
Powers of health and safety representatives.................................492
35
Assistance by consultant.............................................................493
36
Information................................................................................494
37
Obligations and liabilities of health and safety
representatives ...........................................................................495
38
Provisional improvement notices................................................495
39
Effect of provisional improvement notice....................................497
Subdivision C--Duties of the operator and other employers in
relation to health and safety representatives
499
40
Duties of the operator and other employers in relation to
health and safety representatives.................................................499
Division 4--Health and safety committees
502
41
Health and safety committees .....................................................502
42
Functions of health and safety committees ..................................503
43
Duties of the operator and other employers in relation to
health and safety committees......................................................504
Division 5--Emergency procedures
506
44
Action by health and safety representatives.................................506
45
Direction to perform other work .................................................507
Division 6--Exemptions
509
46
Exemptions................................................................................509
Offshore Petroleum Bill 2005 No. , 2005 xxii
Part 4--Inspections
510
Division 1--Introduction
510
47
Simplified outline ......................................................................510
48
Powers, functions and duties of OHS inspectors..........................510
Division 2--Inspections
512
49
Inspections.................................................................................512
Division 3--Powers of OHS inspectors in relation to the conduct
of inspections
513
Subdivision A--General powers of entry and search
513
50
Powers of entry and search--facilities ........................................513
51
Powers of entry and search--regulated business premises
(other than facilities) ..................................................................514
52
Powers of entry and search--premises (other than regulated
business premises) .....................................................................515
53
Warrant to enter premises (other than regulated business
premises) ...................................................................................516
54
Obstructing or hindering OHS inspector .....................................517
Subdivision B--Offence-related searches and seizures
518
55
What is evidential material? .......................................................518
56
Offence-related searches and seizures--OHS inspector
already present at facility............................................................518
57
Offence-related searches and seizures--OHS inspector not
already present at facility, premises or vessel ..............................521
58
Data access powers ....................................................................524
59
Data seizure powers ...................................................................526
60
Access to computer data.............................................................527
61
Compensation for damage to equipment .....................................528
62
Copies of things seized to be provided ........................................529
63
Operator's representative, occupier or master entitled to be
present during search..................................................................530
64
Receipts for things seized...........................................................531
65
Retention of things seized...........................................................531
66
Magistrate may permit a thing seized to be retained for a
further period.............................................................................531
67
Magistrate may issue warrant .....................................................532
68
Reasonable grounds for issuing warrant etc.................................533
69
Contents of warrant....................................................................534
70
Provisions relating to issue of warrant by telephone etc. ..............534
71
Proceedings involving warrant issued by telephone etc................536
72
This Subdivision does not limit other powers ..............................536
xxiii Offshore Petroleum Bill 2005 No. , 2005
Subdivision C--Other powers
537
73
Power to require assistance.........................................................537
74
Power to require the answering of questions and the
production of documents or articles ............................................538
75
Power to take possession of plant, take samples of
substances etc. ...........................................................................541
76
Power to direct that workplace etc. not be disturbed ....................542
77
Power to issue prohibition notices...............................................544
78
Power to issue improvement notices ...........................................546
79
Notices not to be tampered with or removed................................549
Division 4--Reports on inspections
550
80
Reports on inspections ...............................................................550
Division 5--Appeals
552
81
Appeals against decisions of OHS inspectors ..............................552
Part 5--General provisions
555
82
Notifying and reporting accidents and dangerous occurrences......555
83
Records of accidents and dangerous occurrences to be kept .........557
84
Codes of practice .......................................................................557
85
Use of codes of practice in criminal proceedings .........................558
86
Interference etc. with equipment etc............................................558
87
Members of workforce not to be levied.......................................559
88
Employer not to dismiss etc. employees on certain grounds.........559
89
Institution of prosecutions ..........................................................560
90
Conduct of directors, employees and agents ................................562
91
Schedule not to give rise to other liabilities etc............................563
92
Circumstances preventing compliance may be defence to
prosecution ................................................................................563
93
Regulations--general.................................................................564
Schedule 4--Production licences to which the Royalty
Act applies
565
Part 1--Introduction
565
1
Definitions.................................................................................565
Part 2--Applying for a production licence
566
2
Application for production licence by holder of exploration
permit to which the Royalty Act applies......................................566
3
Application period .....................................................................569
4
Application for production licence by holder of retention
lease to which the Royalty Act applies........................................570
Offshore Petroleum Bill 2005 No. , 2005 xxiv
Part 3--Obtaining a production licence
573
5
Secondary production licence--offer document must specify
rate of royalty ............................................................................573
6
Limit on grant of secondary production licence...........................573
Part 4--Variation of licence area
574
7
Variation of licence area of production licence............................574
Part 5--What happens if a block is not taken up
575
8
Revocation of exploration permit or retention lease to the
extent to which it relates to a block not taken up..........................575
Schedule 5--Release of technical information given to
the Designated Authority before 7 March
2000
577
1
Simplified outline ......................................................................577
2
Definitions.................................................................................577
3
Time of receipt of certain information.........................................578
4
Protection of the confidentiality of information ...........................578
5
Designated Authority may make information available to a
Minister, a State Minister or a Northern Territory Minister ..........579
6
Disclosure of basic information given in connection with an
application.................................................................................579
7
Disclosure of basic information after authorised release day ........580
8
Disclosure of information that is in the public domain.................583
9
Disclosure of derivative information after 5 years........................584
10
Transitional--section 118 of the repealed Petroleum
(Submerged Lands) Act 1967......................................................587
Schedule 6--Transitional provisions
588
Part 1--Basic provisions
588
1
Definitions.................................................................................588
2
Re-enactment of the Petroleum (Submerged Lands) Act 1967......589
3
Old titles continue in force .........................................................589
4
Transitional--eligible instruments ..............................................589
5
Transitional--acts or things done before commencement ............590
6
Transitional--conditions of old titles ..........................................591
7
Translation of references in documents .......................................591
8
Transitional regulations..............................................................594
Part 2--Specific provisions
595
9
Joint Authority...........................................................................595
xxv Offshore Petroleum Bill 2005 No. , 2005
10
Joint Authority for an external Territory......................................595
11
Designated Authority .................................................................595
12
Chief Executive Officer of the National Offshore Petroleum
Safety Authority.........................................................................596
13
Project inspectors.......................................................................596
14
Offshore area .............................................................................596
15
Registers....................................................................................596
16
Registration fees--transfer .........................................................597
17
Registration fees--dealings ........................................................597
18
Retention and inspection of documents .......................................598
19
Assessment of registration fee ....................................................598
20
Payments by the Commonwealth to the States and the
Northern Territory......................................................................599
21
Adjustment to period required or allowed for doing an act or
thing etc.....................................................................................599
22
Old titles--continuation in force beyond date of expiry ...............601
23
Renewal of exploration permits ..................................................602
24
Renewal of retention leases ........................................................602
25
Grant of production licences over individual blocks ....................602
26
Renewal of fixed-term production licences..................................603
27
Grant of pipeline licences ...........................................................603
28
Requirement to provide further information in connection
with application for title .............................................................603
29
Revocation of exploration permits, retention leases,
production licences and access authorities...................................604
30
Surrender of title ........................................................................604
31
Cancellation of old titles.............................................................605
32
Commencement of works or operations ......................................605
33
Deduction of debts from proceeds of sale of property ..................606
34
Authorised persons.....................................................................606
35
Release of regulatory information...............................................607
36
Release of technical information--deemed time of receipt of
certain information and samples .................................................607
37
Liability for acts and omissions ..................................................608
38
Reconsideration and review of decisions.....................................608
39
Meaning of petroleum in the Petroleum (Submerged Lands)
Act 1967 ....................................................................................608
40
OHS inspections ........................................................................608
41
OHS prosecutions ......................................................................609
42
Disqualification of health and safety representatives....................610
Offshore Petroleum Bill 2005 No. , 2005 1
A Bill for an Act about offshore petroleum, and for
1
other purposes
2
The Parliament of Australia enacts:
3
Chapter 1--Introduction
4
Part 1.1--Legislative formalities and background
5
6
1 Short title
7
This Act may be cited as the Offshore Petroleum Act 2005.
8
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
Section 2
2 Offshore Petroleum Bill 2005 No. , 2005
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
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.
2. Sections 3 to 5
A single day to be fixed by Proclamation.
3. Parts 1.2, 1.3
and 1.4
At the same time as the provision(s) covered
by table item 2.
4. Chapters 2 to 6
At the same time as the provision(s) covered
by table item 2.
5. Schedules 1, 2,
3, 4 and 5
At the same time as the provision(s) covered
by table item 2.
6. Schedule 6,
clauses 1 to 38
At the same time as the provision(s) covered
by table item 2.
7. Schedule 6,
clause 39
The day on which this Act receives the
Royal Assent.
8. Schedule 6,
clauses 40 to 42
At the same time as the provision(s) covered
by table item 2.
Note:
This table relates only to the provisions of this Act as originally
7
passed by the Parliament and assented to. It will not be expanded to
8
deal with provisions inserted in this Act after assent.
9
(2) Column 3 of the table contains additional information that is not
10
part of this Act. Information in this column may be added to or
11
edited in any published version of this Act.
12
Introduction Chapter 1
Legislative formalities and background Part 1.1
Section 3
Offshore Petroleum Bill 2005 No. , 2005 3
3 Simplified outline
1
The following is a simplified outline of this Act:
2
·
This Act sets up a system for regulating the following
3
activities in offshore areas:
4
(a)
exploration for petroleum;
5
(b)
recovery of petroleum;
6
(c)
construction and operation of petroleum-related
7
infrastructure facilities;
8
(d)
construction and operation of petroleum pipelines.
9
·
An offshore area:
10
(a)
starts 3 nautical miles from the baseline from
11
which the breadth of the territorial sea is measured;
12
and
13
(b)
extends seaward to the outer limits of the
14
continental shelf.
15
·
This Act provides for the grant of the following titles:
16
(a)
an exploration permit (see Part 2.2);
17
(b)
a retention lease (see Part 2.3);
18
(c)
a production licence (see Part 2.4);
19
(d)
an infrastructure licence (see Part 2.5);
20
(e)
a pipeline licence (see Part 2.6);
21
(f)
a special prospecting authority (see Part 2.7);
22
(g)
an access authority (see Part 2.8).
23
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
Section 4
4 Offshore Petroleum Bill 2005 No. , 2005
·
Generally, the administration of this Act in relation to an
1
offshore area of a State or the Northern Territory is divided
2
between:
3
(a)
the Joint Authority for the State or Territory (the
4
Joint Authority is constituted by the responsible
5
State/Territory Minister and the responsible
6
Commonwealth Minister); and
7
(b)
the Designated Authority of the State or Territory
8
(the Designated Authority is the responsible
9
State/Territory Minister).
10
·
The National Offshore Petroleum Safety Authority is
11
responsible for the administration of occupational health and
12
safety provisions.
13
Note:
Generally, the baseline is the line of lowest astronomical tide along
14
the coast, but it also encompasses straight lines across bays (bay
15
closing lines), rivers (river closing lines) and between islands, as well
16
as along heavily indented areas of coastline (straight baselines) under
17
certain circumstances.
18
4 Commonwealth-State agreement (the Offshore Constitutional
19
Settlement)
20
(1) This section explains the agreement known as the Offshore
21
Constitutional Settlement, to the extent to which that agreement
22
relates to exploring for, and exploiting, petroleum.
23
(2) The Commonwealth, the States and the Northern Territory have
24
agreed that:
25
(a) Commonwealth offshore petroleum legislation should be
26
limited to the area that is outside the coastal waters of the
27
States and the Northern Territory; and
28
(b) for this purpose, the outer limits of State and Northern
29
Territory coastal waters should start 3 nautical miles from the
30
baseline of the territorial sea; and
31
(c) the States and the Northern Territory should share, in the
32
manner provided by this Act, in the administration of the
33
Commonwealth offshore petroleum legislation; and
34
Introduction Chapter 1
Legislative formalities and background Part 1.1
Section 4
Offshore Petroleum Bill 2005 No. , 2005 5
(d) State and Northern Territory offshore petroleum legislation
1
should apply to State and Northern Territory coastal waters;
2
and
3
(e) the Commonwealth, the States and the Northern Territory
4
should try to maintain, as far as practicable, common
5
principles, rules and practices in regulating and controlling
6
the exploration for, and exploitation of, offshore petroleum
7
beyond the baseline of Australia's territorial sea.
8
(3) The table summarises other Acts that provide background to the
9
Offshore Constitutional Settlement:
10
11
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
Section 4
6 Offshore Petroleum Bill 2005 No. , 2005
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.
Introduction Chapter 1
Legislative formalities and background Part 1.1
Section 5
Offshore Petroleum Bill 2005 No. , 2005 7
Other Acts
Item
Act
Summary of Act
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.
5 Simplified maps
1
(1) This section sets out simplified maps illustrating areas off the coast
2
of Australia that are relevant to this Act.
3
(2) In the interests of simplification:
4
(a) coastlines and boundaries have been smoothed; and
5
(b) the maps do not show certain waters within the limits of a
6
State or Territory; and
7
(c) the line marking the outer limits of the coastal waters of a
8
State or Territory appears to be further out to sea than it
9
actually is.
10
Map 1
11
(3) Map 1 illustrates the offshore areas and the scheduled areas:
12
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
Section 5
8 Offshore Petroleum Bill 2005 No. , 2005
1
Note 1:
As at the day on which the Bill that became this Act was introduced
2
into the House of Representatives, certain maritime areas adjacent to
3
Australia remained subject to delimitation with other countries. The
4
full extent of Australia's claimed exclusive economic zone and
5
continental shelf jurisdiction has not been shown in this map. The
6
claimed jurisdiction extends beyond the areas shown in this map.
7
Note 2:
Generally, the territorial sea baseline is the line of lowest astronomical
8
tide along the coast, but it also encompasses straight lines across bays
9
(bay closing lines), rivers (river closing lines) and between islands, as
10
well as along heavily indented areas of coastline (straight baselines)
11
under certain circumstances.
12
Note 3:
The location of the Joint Petroleum Development Area established
13
under the Timor Sea Treaty is indicated on this map as the unshaded
14
space abutting the offshore areas of Western Australia and the
15
Introduction Chapter 1
Legislative formalities and background Part 1.1
Section 5
Offshore Petroleum Bill 2005 No. , 2005 9
Northern Territory. The Joint Petroleum Development Area is not
1
included in any offshore area as defined by this Act.
2
Map 2
3
(4) Map 2 zooms in and illustrates the offshore area of South
4
Australia:
5
6
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
Section 5
10 Offshore Petroleum Bill 2005 No. , 2005
Map 3
1
(5) Map 3 zooms in and illustrates coastal waters and waters within the
2
limits of South Australia:
3
Introduction Chapter 1
Legislative formalities and background Part 1.1
Section 5
Offshore Petroleum Bill 2005 No. , 2005 11
1
Chapter 1 Introduction
Part 1.1 Legislative formalities and background
Section 5
12 Offshore Petroleum Bill 2005 No. , 2005
Note:
The bays shown as being within the limits of South Australia are for
1
illustrative purposes only.
2
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 6
Offshore Petroleum Bill 2005 No. , 2005 13
1
Part 1.2--Interpretation
2
Division 1--General
3
6 Definitions
4
In this Act, unless the contrary intention appears:
5
access authority means an access authority granted under:
6
(a) Part 2.8 of this Act; or
7
(b) section 112 of the repealed Petroleum (Submerged Lands)
8
Act 1967.
9
Annual Fees Act means the Offshore Petroleum (Annual Fees) Act
10
2005.
11
applied provisions has the meaning given by subsection 59(2).
12
approved means approved in writing by the Designated Authority.
13
authority area:
14
(a) when used in relation to a special prospecting authority--
15
means the area constituted by the block or blocks that are the
16
subject of the special prospecting authority; or
17
(b) when used in relation to an access authority--means the area
18
to which the access authority relates.
19
block means a block constituted as provided by section 16 or 245.
20
cash-bid exploration permit means:
21
(a) an exploration permit granted under:
22
(i) Division 3 of Part 2.2 of this Act; or
23
(ii) section 22B of the repealed Petroleum (Submerged
24
Lands) Act 1967; or
25
(b) an exploration permit granted under:
26
(i) Division 5 of Part 2.2 of this Act; or
27
(ii) section 32 of the repealed Petroleum (Submerged
28
Lands) Act 1967;
29
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 6
14 Offshore Petroleum Bill 2005 No. , 2005
by way of the renewal of a permit referred to in
1
paragraph (a).
2
charge, when used in relation to the assets of a body corporate, has
3
the same meaning as in section 263 of the Corporations Act 2001.
4
coastal waters, in relation to a State or the Northern Territory,
5
means so much of the scheduled area for the State or Territory as
6
consists of:
7
(a) the first 3 nautical miles of the territorial sea from the
8
baseline; and
9
(b) any waters that are within the baseline and not within the
10
limit of the State or Territory.
11
construct includes place.
12
continental shelf means the continental shelf (within the meaning
13
of the Seas and Submerged Lands Act 1973) adjacent to the coast
14
of:
15
(a) Australia (including the coast of any island forming part of a
16
State or Territory); or
17
(b) a Territory.
18
datum means a reference frame for defining geographic
19
coordinates.
20
Note:
If the position on the surface of the Earth of a particular point is
21
identified by a coordinate that is determined by reference to a
22
particular datum, the use of a different datum will result in the same
23
point being identified by a different coordinate.
24
debenture has the same meaning as in section 263 of the
25
Corporations Act 2001.
26
Designated Authority has the meaning given by section 50 and,
27
when used in the expression the Designated Authority, means the
28
Designated Authority of the State or Territory concerned.
29
engage in conduct means:
30
(a) do an act; or
31
(b) omit to perform an act.
32
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 6
Offshore Petroleum Bill 2005 No. , 2005 15
expiry date, in relation to an exploration permit, retention lease or
1
production licence, has the meaning given by section 9.
2
exploration permit means:
3
(a) a work-bid exploration permit; or
4
(b) a cash-bid exploration permit; or
5
(c) a special exploration permit.
6
exploration permit area means the permit area of an exploration
7
permit.
8
exploration permittee means the registered holder of an
9
exploration permit.
10
explore, in relation to petroleum, has a meaning affected by
11
section 15.
12
Federal Court means the Federal Court of Australia.
13
fixed-term production licence means a production licence covered
14
by item 2 or 3 of the table in subsection 139(1).
15
geographic coordinate includes:
16
(a) a meridian of longitude by itself; and
17
(b) a parallel of latitude by itself.
18
good oilfield practice means all those things that are generally
19
accepted as good and safe in:
20
(a) the carrying on of exploration for petroleum; or
21
(b) petroleum recovery operations.
22
good processing and transport practice means all those things that
23
are generally accepted as good and safe in:
24
(a) the processing, conveyance, transport and storage of
25
petroleum; and
26
(b) the preparation of petroleum for transport.
27
graticular section has the meaning given by section 16.
28
infrastructure facility has the meaning given by section 13.
29
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 6
16 Offshore Petroleum Bill 2005 No. , 2005
infrastructure licence means an infrastructure licence granted
1
under:
2
(a) Part 2.5 of this Act; or
3
(b) Division 3A of Part III of the repealed Petroleum
4
(Submerged Lands) Act 1967.
5
infrastructure licence area means the licence area of an
6
infrastructure licence.
7
infrastructure licensee means the registered holder of an
8
infrastructure licence.
9
Joint Authority has the meaning given by section 38 and, when
10
used in the expression the Joint Authority, means the Joint
11
Authority of the State or Territory concerned.
12
Joint Petroleum Development Area has the same meaning as in
13
the Petroleum (Timor Sea Treaty) Act 2003.
14
lease area, when used in relation to a retention lease, means the
15
area constituted by the block or blocks that are the subject of the
16
lease.
17
lessee, when used in relation to a retention lease, means the
18
registered holder of the lease.
19
licence area:
20
(a) when used in relation to an infrastructure licence--means the
21
place in relation to which the infrastructure licence is in
22
force; or
23
(b) when used in relation to a production licence--means the
24
area constituted by the block or blocks that are the subject of
25
the production licence.
26
Note:
The place in relation to which an infrastructure licence is in force must
27
be a place in an offshore area--see subsection 170(2) and section 171.
28
licensee:
29
(a) when used in relation to a production licence--means the
30
registered holder of the production licence; or
31
(b) when used in relation to an infrastructure licence--means the
32
registered holder of the infrastructure licence; or
33
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 6
Offshore Petroleum Bill 2005 No. , 2005 17
(c) when used in relation to a pipeline licence--means the
1
registered holder of the pipeline licence.
2
life-of-field production licence means a production licence
3
covered by item 1 or 4 of the table in subsection 139(1).
4
listed OHS laws has the meaning given by section 348.
5
location means a block or blocks in relation to which a declaration
6
under section 109 is in force.
7
natural resources has the same meaning as in paragraph 4 of
8
Article 77 of the United Nations Convention on the Law of the Sea
9
done at Montego Bay on 10 December 1982.
10
Note:
Paragraph 4 of Article 77 is as follows:
11
The natural resources referred to in this Part consist of the mineral and
12
other non-living resources of the seabed and subsoil together with
13
living organisms belonging to sedentary species, that is to say,
14
organisms which, at the harvestable stage, either are immobile on or
15
under the seabed or are unable to move except in constant physical
16
contact with the seabed or the subsoil.
17
New Zealand boundary treaty means the Treaty between Australia
18
and New Zealand establishing certain exclusive economic zone
19
boundaries and continental shelf boundaries that was signed at
20
Adelaide on 25 July 2004.
21
Northern Territory title means an authority, however described,
22
under a law of the Northern Territory, to explore for, or to recover,
23
petroleum.
24
offshore area means an offshore area of a State or Territory within
25
the meaning of section 7 and, when used in the expression the
26
offshore area, means the offshore area of the State or Territory
27
concerned.
28
Note:
The offshore area corresponds to the term adjacent area under the
29
repealed Petroleum (Submerged Lands) Act 1967.
30
original exploration permit means an exploration permit granted
31
otherwise than by way of renewal.
32
original production licence means a production licence granted
33
otherwise than by way of renewal.
34
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 6
18 Offshore Petroleum Bill 2005 No. , 2005
partly cancelled means:
1
(a) in relation to an exploration permit or production licence--
2
cancelled as to one or more, but not all, of the blocks the
3
subject of the permit or licence; and
4
(b) in relation to a pipeline licence--cancelled as to a part of the
5
pipeline the subject of the licence.
6
partly revoked, in relation to an exploration permit or retention
7
lease, means revoked as to one or more, but not all, of the blocks
8
the subject of the permit or lease.
9
partly surrendered, in relation to an exploration permit or
10
production licence, means surrendered as to one or more, but not
11
all, of the blocks the subject of the permit or licence.
12
partly terminated, in relation to a pipeline licence, means
13
terminated as to a part of the pipeline the subject of the licence.
14
permit area, when used in relation to an exploration permit, means
15
the area constituted by the block or blocks that are the subject of
16
the exploration permit.
17
permittee, when used in relation to an exploration permit, means
18
the registered holder of the exploration permit.
19
petroleum means:
20
(a) any naturally occurring hydrocarbon, whether in a gaseous,
21
liquid or solid state; or
22
(b) any naturally occurring mixture of hydrocarbons, whether in
23
a gaseous, liquid or solid state; or
24
(c) any naturally occurring mixture of:
25
(i) one or more hydrocarbons, whether in a gaseous, liquid
26
or solid state; and
27
(ii) one or more of the following, that is to say, hydrogen
28
sulphide, nitrogen, helium and carbon dioxide;
29
and:
30
(d) includes any petroleum as defined by paragraph (a), (b) or (c)
31
that has been returned to a natural reservoir; and
32
(e) for the purposes of the pipeline provisions, also includes any
33
petroleum as defined by paragraph (a), (b), (c) or (d), where:
34
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 6
Offshore Petroleum Bill 2005 No. , 2005 19
(i) one or more things have been added; or
1
(ii) one or more things have been wholly or partly removed;
2
or both; and
3
(f) for the purposes of the pipeline provisions, also includes any
4
mixture that:
5
(i) has been recovered from a well; and
6
(ii) includes petroleum as defined by paragraph (a), (b), (c)
7
or (d);
8
whether or not:
9
(iii) one or more things have been added; or
10
(iv) one or more things have been wholly or partly removed;
11
or both.
12
petroleum pool means a naturally occurring discrete accumulation
13
of petroleum.
14
pipeline means:
15
(a) a pipe, or system of pipes, in an offshore area for conveying
16
petroleum (whether or not the petroleum is recovered from an
17
offshore area), other than a secondary line; or
18
(b) a part of a pipe covered by paragraph (a); or
19
(c) a part of a system of pipes covered by paragraph (a).
20
pipeline licence means a pipeline licence granted under:
21
(a) Part 2.6 of this Act; or
22
(b) Division 4 of Part III of the repealed Petroleum (Submerged
23
Lands) Act 1967.
24
pipeline licensee means the registered holder of a pipeline licence.
25
pipeline provisions means the following:
26
(a) Part 2.6;
27
(b) the definition of pipeline in this section;
28
(c) the definition of pumping station in this section;
29
(d) the definition of tank station in this section;
30
(e) the definition of valve station in this section;
31
(f) item 3 of the table in subsection 301(1).
32
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 6
20 Offshore Petroleum Bill 2005 No. , 2005
production licence means a production licence granted under:
1
(a) Part 2.4 of this Act; or
2
(b) Division 3 of Part III of the repealed Petroleum (Submerged
3
Lands) Act 1967; or
4
(c) section 148 of the repealed Petroleum (Submerged Lands)
5
Act 1967.
6
production licence area means the licence area of a production
7
licence.
8
production licensee means the registered holder of a production
9
licence.
10
project inspector means a person appointed as a project inspector
11
under section 318.
12
pumping station means equipment for pumping petroleum or
13
water, and includes any structure associated with that equipment.
14
Register means:
15
(a) a Register kept under section 253; and
16
(b) when used in relation to the Designated Authority for an
17
offshore area--means the Register kept under section 253 by
18
that Designated Authority.
19
registered holder, in relation to a title, means the person whose
20
name is shown in the Register as the holder of the title. For this
21
purpose, a title is an exploration permit, retention lease, production
22
licence, infrastructure licence, pipeline licence, special prospecting
23
authority or access authority.
24
Registration Fees Act means the Offshore Petroleum (Registration
25
Fees) Act 2005.
26
regulated operation means an activity to which Chapter 2 applies.
27
renewal, in relation to an exploration permit, retention lease or
28
production licence, has the meaning given by section 10.
29
responsible Commonwealth Minister means:
30
(a) the Minister who is responsible for the administration of this
31
Act; or
32
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 6
Offshore Petroleum Bill 2005 No. , 2005 21
(b) another Minister acting for and on behalf of the Minister
1
referred to in paragraph (a).
2
responsible Northern Territory Minister means:
3
(a) the Minister of the Northern Territory who is authorised
4
under a law of the Northern Territory to perform the
5
functions of a Designated Authority under this Act; or
6
(b) another Minister of the Northern Territory acting for and on
7
behalf of the Minister referred to in paragraph (a).
8
responsible State Minister, in relation to a State, means:
9
(a) the Minister of the State who is authorised under a law of the
10
State to perform the functions of a Designated Authority
11
under this Act; or
12
(b) another Minister of the State acting for and on behalf of the
13
Minister referred to in paragraph (a).
14
retention lease means a retention lease granted under:
15
(a) Part 2.3 of this Act; or
16
(b) Division 2A of Part III of the repealed Petroleum
17
(Submerged Lands) Act 1967.
18
retention lease area means the lease area of a retention lease.
19
retention lessee means the registered holder of a retention lease.
20
Royalty Act means the Offshore Petroleum (Royalty) Act 2005.
21
Safety Authority means the National Offshore Petroleum Safety
22
Authority continued in existence by section 355.
23
scheduled area, in relation to a State or Territory, has the meaning
24
given by Schedule 1.
25
scientific investigation consent means a scientific investigation
26
consent granted under:
27
(a) Part 2.9 of this Act; or
28
(b) section 123 of the repealed Petroleum (Submerged Lands)
29
Act 1967.
30
secondary line means a pipe, or system of pipes, for:
31
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 6
22 Offshore Petroleum Bill 2005 No. , 2005
(a) returning petroleum to a natural reservoir; or
1
(b) conveying petroleum for use for petroleum exploration
2
operations; or
3
(c) conveying petroleum for use for petroleum recovery
4
operations; or
5
(d) conveying petroleum that is to be flared or vented; or
6
(e) conveying petroleum from a well, wherever located, to a
7
terminal station in an offshore area without passing through
8
another terminal station.
9
special exploration permit means:
10
(a) an exploration permit granted under:
11
(i) Division 4 of Part 2.2 of this Act; or
12
(ii) section 27 of the repealed Petroleum (Submerged
13
Lands) Act 1967; or
14
(b) an exploration permit granted under:
15
(i) Division 5 of Part 2.2 of this Act; or
16
(ii) section 32 of the repealed Petroleum (Submerged
17
Lands) Act 1967;
18
by way of the renewal of a permit referred to in
19
paragraph (a).
20
special prospecting authority means a special prospecting
21
authority granted under:
22
(a) Part 2.7 of this Act; or
23
(b) section 111 of the repealed Petroleum (Submerged Lands)
24
Act 1967.
25
State title means an authority, however described, under a law of a
26
State, to explore for, or to recover, petroleum.
27
tank station means a tank, or system of tanks, for holding or
28
storing petroleum, and includes any structure associated with that
29
tank or system of tanks.
30
term, in relation to an exploration permit, retention lease,
31
production licence, infrastructure licence, pipeline licence, special
32
prospecting authority or access authority, has the meaning given by
33
section 9.
34
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 6
Offshore Petroleum Bill 2005 No. , 2005 23
terminal station has the meaning given by section 14.
1
territorial sea has the same meaning as in the Seas and Submerged
2
Lands Act 1973.
3
Territory means a Territory in which this Act applies or to which
4
this Act extends.
5
title:
6
(a) when used in the definition of registered holder--has the
7
meaning given by the second sentence of that definition; or
8
(b) when used in Subdivision A of Division 2 of Part 1.2--has
9
the meaning given by section 21; or
10
(c) when used in Division 3 of Part 1.2--has the meaning given
11
by section 32; or
12
(d) when used in section 55--has the meaning given by
13
subsection 55(4); or
14
(e) when used in section 245--has the meaning given by
15
subsection 245(6); or
16
(f) when used in Chapter 3--has the meaning given by
17
section 251; or
18
(g) when used in section 305--has the meaning given by
19
subsection 305(1); or
20
(h) when used in section 441--has the meaning given by
21
subsection 441(7).
22
title area:
23
(a) when used in Division 3 of Part 1.2--has the meaning given
24
by section 33; or
25
(b) when used in section 303--has the meaning given by
26
subsection 303(1); or
27
(c) when used in section 311--has the meaning given by
28
subsection 311(5).
29
titleholder:
30
(a) when used in Division 3 of Part 1.2--has the meaning given
31
by section 33; or
32
(b) when used in section 303--has the meaning given by
33
subsection 303(1).
34
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 6
24 Offshore Petroleum Bill 2005 No. , 2005
vacated area has the meaning given by section 12.
1
valve station means equipment for regulating the flow of
2
petroleum, and includes any structure associated with that
3
equipment.
4
vessel means a vessel used in navigation, other than air navigation,
5
and includes a barge, lighter or other floating vessel.
6
water line means a pipe, or system of pipes, for conveying water in
7
connection with:
8
(a) petroleum exploration operations; or
9
(b) petroleum recovery operations.
10
well means a hole in the seabed or subsoil made by drilling, boring
11
or any other means in connection with:
12
(a) exploration for petroleum; or
13
(b) petroleum recovery operations;
14
but does not include a seismic shot hole.
15
wholly cancelled, in relation to an exploration permit, production
16
licence or pipeline licence, means cancelled as to all the blocks, or
17
as to the whole of the pipeline, the subject of the permit or licence.
18
wholly revoked, in relation to an exploration permit or retention
19
lease, means revoked as to all the blocks the subject of the permit
20
or lease.
21
wholly terminated, in relation to a pipeline licence, means
22
terminated as to the whole of the pipeline the subject of the licence.
23
work-bid exploration permit means:
24
(a) an exploration permit granted under:
25
(i) Division 2 of Part 2.2 of this Act; or
26
(ii) section 22 of the repealed Petroleum (Submerged
27
Lands) Act 1967; or
28
(b) an exploration permit granted under:
29
(i) Division 5 of Part 2.2 of this Act; or
30
(ii) section 32 of the repealed Petroleum (Submerged
31
Lands) Act 1967;
32
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 7
Offshore Petroleum Bill 2005 No. , 2005 25
by way of the renewal of a permit referred to in
1
paragraph (a).
2
7 Offshore areas
3
(1) For the purposes of this Act, the table has effect:
4
5
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.
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 7
26 Offshore Petroleum Bill 2005 No. , 2005
Offshore areas
Item
The offshore area of...
is...
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.
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 7
Offshore Petroleum Bill 2005 No. , 2005 27
Offshore areas
Item
The offshore area of...
is...
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 corresponds to the adjacent area under the repealed
1
Petroleum (Submerged Lands) Act 1967.
2
(2) For the purposes of this section, the Coral Sea area is so much of
3
the area to the east of the area described in paragraph (a) of item 2
4
of the table in subsection (1) as comprises waters of the sea that are
5
within the outer limits of the continental shelf, other than any part
6
of that area that is:
7
(a) to the south of the parallel of Latitude 25° South; or
8
(b) on the landward side of the coastline of any island at mean
9
low water.
10
Note:
For datum, see section 22.
11
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 8
28 Offshore Petroleum Bill 2005 No. , 2005
Territory of Ashmore and Cartier Islands--land taken to be
1
beneath the sea etc.
2
(3) This Act has effect in relation to so much of the offshore area of
3
the Territory of Ashmore and Cartier Islands as consists of land as
4
if that land were:
5
(a) beneath the sea; and
6
(b) part of the seabed and subsoil of that offshore area.
7
Areas of the continental shelf over which Australia does not
8
exercise sovereign rights
9
(4) For the purposes of:
10
(a) an item in the table in subsection (1); and
11
(b) subsection (2);
12
the continental shelf does not include any area of seabed and
13
subsoil that, as a result of an agreement in force between Australia
14
and a foreign country, is not an area over which Australia exercises
15
sovereign rights.
16
8 Spaces above and below offshore areas
17
For the purposes of this Act:
18
(a) the space above or below an offshore area is taken to be in
19
that area; and
20
(b) the space above or below an area that is part of an offshore
21
area is taken to be in that part.
22
9 Term of titles
23
For the purposes of this Act, the table has effect:
24
25
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 10
Offshore Petroleum Bill 2005 No. , 2005 29
Term of title etc.
Item
A reference in this Act to...
is a reference to...
1
the term of:
(a) an exploration permit; or
(b) a retention lease; or
(c) a production licence; or
(d) an infrastructure licence; or
(e) a pipeline licence; or
(f) a special prospecting
authority; or
(g) an access authority;
the period during which the permit,
lease, licence or authority remains in
force.
2
a year of the term of:
(a) an exploration permit; or
(b) a retention lease; or
(c) a 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) an exploration permit; or
(b) a retention lease; or
(c) a production licence;
the day on which the permit, lease or
licence ceases to be in force.
10 Renewal of titles
1
For the purposes of this Act, the table has effect:
2
3
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 11
30 Offshore Petroleum Bill 2005 No. , 2005
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 an exploration
permit
the grant of an 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
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 retention lease
the grant of a 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
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 production licence
the grant of a 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
production licence granted on a
previous renewal of the licence
mentioned in column 1.
11 Variation of titles
1
If an exploration permit, retention lease, production licence,
2
infrastructure licence, pipeline licence, special prospecting
3
authority or access authority is varied, a reference in this Act to the
4
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 12
Offshore Petroleum Bill 2005 No. , 2005 31
permit, lease, licence or authority is a reference to the permit,
1
lease, licence or authority as varied.
2
12 Vacated area
3
For the purposes of this Act, the table has effect:
4
5
Vacated area
Item
In the case of...
the vacated area is...
1
an exploration permit, retention
lease or 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
an exploration permit, retention
lease or 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
an exploration permit or 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 retention lease that has been
cancelled
the lease area.
5
a 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 special prospecting authority that:
(a) has been surrendered or
cancelled; or
(b) has expired
the authority area.
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 13
32 Offshore Petroleum Bill 2005 No. , 2005
Vacated area
Item
In the case of...
the vacated area is...
10
an access authority that:
(a) has been revoked or
surrendered; or
(b) has expired
the authority area.
13 Infrastructure facilities
1
Definition
2
(1) For the purposes of this Act, an infrastructure facility is a facility,
3
structure or installation for engaging in any of the activities to
4
which subsection (2) applies, so long as:
5
(a) the facility, structure or installation rests on the seabed; or
6
(b) the facility, structure or installation is fixed or connected to
7
the seabed (whether or not the facility is floating); or
8
(c) the facility, structure or installation is attached or tethered to
9
a facility, structure or installation referred to in paragraph (a)
10
or (b).
11
Activities
12
(2) This subsection applies to the following activities:
13
(a) remote control of facilities, structures or installations used to
14
recover petroleum in a production licence area;
15
(b) processing petroleum recovered in any place, including:
16
(i) converting petroleum into another form by physical or
17
chemical means, or both (for example, converting it into
18
liquefied natural gas or methanol); and
19
(ii) partial processing of petroleum (for example, by
20
removing water);
21
(c) storing petroleum before it is transported to another place;
22
(d) preparing petroleum for transport to another place (for
23
example, pumping or compressing);
24
(e) activities related to any of the above;
25
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 14
Offshore Petroleum Bill 2005 No. , 2005 33
but, except as mentioned in paragraph (a), this subsection does not
1
apply to exploring for, or recovering, petroleum.
2
14 Terminal station
3
(1) The Designated Authority may, by notice published in the Gazette,
4
declare any of the following to be a terminal station for the
5
purposes of this Act:
6
(a) a specified pumping station in an offshore area;
7
(b) a specified tank station in an offshore area;
8
(c) a specified valve station in an offshore area.
9
(2) A declaration under subsection (1) has effect accordingly.
10
15 Extended meaning of explore
11
For the purposes of this Act, if:
12
(a) a person:
13
(i) carries out a seismic survey, or any other kind of survey,
14
in an offshore area; or
15
(ii) takes samples of the seabed or subsoil of an offshore
16
area; and
17
(b) the person does so with the intention that the person or
18
another could use the survey data, or information derived
19
from the samples, as the case may be, for the purpose of
20
discovering petroleum;
21
the person is taken to explore for petroleum.
22
16 Graticulation of Earth's surface and constitution of blocks
23
Graticular sections
24
(1) For the purposes of this Act, the surface of the Earth is taken to be
25
divided:
26
(a) by the meridian of Greenwich and by meridians that are at an
27
angular distance from that meridian of 5 minutes, or a
28
multiple of 5 minutes, of longitude; and
29
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 16
34 Offshore Petroleum Bill 2005 No. , 2005
(b) by the equator and by parallels of latitude that are at an
1
angular distance from the equator of 5 minutes, or a multiple
2
of 5 minutes, of latitude;
3
into sections called graticular sections, each of which is bounded:
4
(c) by portions of 2 of those meridians that are at an angular
5
distance from each other of 5 minutes of longitude; and
6
(d) by portions of 2 of those parallels of latitude that are at an
7
angular distance from each other of 5 minutes of latitude.
8
Simplified map
9
(2) This subsection sets out a simplified map illustrating graticular
10
sections off the coast of Western Australia in the vicinity of
11
Barrow Island:
12
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 16
Offshore Petroleum Bill 2005 No. , 2005 35
1
Blocks
2
(3) For the purposes of this Act:
3
(a) a graticular section that is wholly within an offshore area
4
constitutes a block; and
5
(b) if a part only of a graticular section is, or parts only of a
6
graticular section are, within an offshore area, the area of that
7
part, or of those parts, constitutes a block.
8
Chapter 1 Introduction
Part 1.2 Interpretation
Division 1 General
Section 17
36 Offshore Petroleum Bill 2005 No. , 2005
Note:
See also section 245 (certain portions of blocks to be blocks).
1
Block that is constituted by a graticular section
2
(4) A reference in this Act to a block that is constituted by a
3
graticular section includes a reference to a block that is constituted
4
by the area of a part only, or by the areas of parts only, of a
5
graticular section.
6
Graticular section that constitutes a block
7
(5) A reference in this Act to a graticular section that constitutes a
8
block includes a reference to:
9
(a) a graticular section only part of which constitutes a block; or
10
(b) a graticular section only parts of which constitute a block.
11
Note:
For datum, see section 22.
12
17 External Territories
13
This Act extends to the following external Territories:
14
(a) Norfolk Island;
15
(b) the Territory of Christmas Island;
16
(c) the Territory of Cocos (Keeling) Islands;
17
(d) the Territory of Ashmore and Cartier Islands;
18
(e) the Territory of Heard Island and McDonald Islands.
19
18 Application of Act
20
This Act applies to:
21
(a) all individuals, whether or not Australian citizens, and
22
whether or not resident in the Commonwealth or a Territory;
23
and
24
(b) all corporations, whether or not incorporated or carrying on
25
business in the Commonwealth or a Territory.
26
Introduction Chapter 1
Interpretation Part 1.2
General Division 1
Section 19
Offshore Petroleum Bill 2005 No. , 2005 37
19 Certain pipelines provisions to apply subject to international
1
obligations
2
(1) This section applies to the provisions of this Act to the extent to
3
which they relate to a pipeline for the conveyance of petroleum
4
recovered from a place beyond the outer limits of any offshore
5
area.
6
(2) The provisions have effect subject to Australia's obligations under
7
international law, including obligations under any agreement
8
between Australia and any foreign country or countries.
9
Chapter 1 Introduction
Part 1.2 Interpretation
Division 2 Datum provisions
Section 20
38 Offshore Petroleum Bill 2005 No. , 2005
1
Division 2--Datum provisions
2
Subdivision A--Datum for ascertaining the position of points
3
etc.
4
20 Objects
5
The objects of this Subdivision are:
6
(a) to maintain the use of the Australian Geodetic Datum to
7
determine the position of blocks and certain other areas; and
8
(b) to enable the position of a point, line, block or other area to
9
be described, in a title or other instrument under this Act,
10
using another datum (but not so as to change the position of a
11
point, line, block or area).
12
21 Definitions
13
In this Subdivision:
14
Australian Geodetic Datum means the Australian Geodetic Datum
15
as defined in Gazette No. 84 of 6 October 1966 (AGD66 geodetic
16
data set).
17
instrument under this Act does not include the regulations.
18
this Act includes the regulations.
19
title means an exploration permit, retention lease, production
20
licence, infrastructure licence, pipeline licence, special prospecting
21
authority or access authority.
22
22 Australian Geodetic Datum
23
(1) For the purposes of this Act, the position on the surface of the
24
Earth of:
25
(a) a graticular section or block; or
26
(b) the parallel of latitude described in subsection 7(2); or
27
(c) an area described in Schedule 1; or
28
Introduction Chapter 1
Interpretation Part 1.2
Datum provisions Division 2
Section 23
Offshore Petroleum Bill 2005 No. , 2005 39
(d) the area described in Schedule 2;
1
is to be determined by reference to the Australian Geodetic Datum.
2
Note 1:
Subsection 7(2) describes the Coral Sea area.
3
Note 2:
Schedule 1 describes the scheduled areas for the States and
4
Territories. See also sections 30 and 31 (points and lines specified in
5
the New Zealand boundary treaty).
6
Note 3:
Schedule 2 describes the area that includes the area to be avoided.
7
Note 4:
Australian Geodetic Datum is defined in section 21.
8
(2) Subsection (1) does not apply for the purposes of describing, in a
9
title or other instrument under this Act, the position on the surface
10
of the Earth of a point, line or area.
11
23 Current datum, previous datum and changeover time
12
(1) The regulations may declare that, for the purposes of describing, in
13
a title or other instrument under this Act, the position on the
14
surface of the Earth of a point, line or area:
15
(a) a specified datum is the current datum; and
16
(b) that datum replaces the previous datum.
17
(2) The previous datum is:
18
(a) if a datum is the first datum declared to be the current datum
19
under subsection (1)--the Australian Geodetic Datum; or
20
(b) in any other case--the datum that was the current datum
21
immediately before the changeover time.
22
Note:
Under clause 4 of Schedule 6 to this Act, a declaration under
23
subsection 150N(1) of the repealed Petroleum (Submerged Lands) Act
24
1967 has effect as if it were a declaration under subsection (1) of this
25
section.
26
(3) The changeover time is the time when the declaration takes effect.
27
24 Use of current datum
28
For the purposes of this Act, after the changeover time, for a title
29
or instrument set out in the table, the position on the surface of the
30
Earth of a point, line or area set out in the table is to be described
31
by reference to the current datum, and the relevant title or
32
instrument may be annotated accordingly:
33
Chapter 1 Introduction
Part 1.2 Interpretation
Division 2 Datum provisions
Section 25
40 Offshore Petroleum Bill 2005 No. , 2005
1
Points, lines and areas
Item
Title or instrument
Point, line or area
1
an exploration permit
the permit area of an exploration
permit granted after the changeover
time
2
a retention lease
the lease area of a retention lease
granted after the changeover time
3
a production licence
the licence area of a 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 special prospecting authority
the authority area of a special
prospecting authority granted after
the changeover time
6
an access authority
the authority area of an access
authority granted after the
changeover time
7
a pipeline licence
the route of a pipeline authorised by
a pipeline licence granted after the
changeover time
8
any other instrument under this Act
a point, line or area set out in any
other instrument under this Act
made after the changeover time
Note:
A grant of an exploration permit, a retention lease or a production
2
licence may be a grant by way of renewal--see section 10.
3
25 Use of previous datum
4
(1) For the purposes of this Act, after the changeover time, for a title
5
or instrument set out in the table, the position on the surface of the
6
Earth of a point, line or area set out in the table is to be described
7
by reference to the previous datum:
8
9
Introduction Chapter 1
Interpretation Part 1.2
Datum provisions Division 2
Section 26
Offshore Petroleum Bill 2005 No. , 2005 41
Points, lines and areas
Item
Title or instrument
Point, line or area
1
an exploration permit
the permit area of an exploration
permit that was in force immediately
before the changeover time
2
a retention lease
the lease area of a retention lease
that was in force immediately before
the changeover time
3
a production licence
the licence area of a 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 special prospecting authority
the authority area of a special
prospecting authority that was in
force immediately before the
changeover time
6
an access authority
the authority area of an access
authority that was in force
immediately before the changeover
time
7
a pipeline licence
the route of a pipeline authorised by
a pipeline licence that was in force
immediately before the changeover
time
8
any other instrument under this Act
a point, line or area set out in any
other instrument under this Act that
was in force immediately before the
changeover time
(2) Subsection (1) has effect subject to section 26 (which deals with
1
variation of titles and instruments).
2
26 Variation of titles and instruments
3
The table has effect:
4
Chapter 1 Introduction
Part 1.2 Interpretation
Division 2 Datum provisions
Section 27
42 Offshore Petroleum Bill 2005 No. , 2005
1
Variation of titles and instruments
Item
The regulations may authorise the
Designated Authority to issue an
instrument varying...
for the sole purpose of...
1
an 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 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 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 special prospecting authority or an
access authority that was in force
immediately before the changeover
time
relabelling the authority area using
geographic coordinates based on the
current datum.
6
a pipeline licence that was in force
immediately before the changeover
time
relabelling the route of the pipeline
using geographic coordinates based
on the current datum.
7
any other instrument under this Act
that:
(a) sets out a point, line or area; and
(b) was in force immediately before
the changeover time
relabelling the point, line or area
using geographic coordinates based
on the current datum.
8
a title or other instrument under this
Act
inserting an annotation about the
applicable datum.
Note:
For publication in the Gazette of notice of the variation, see
2
section 418.
3
27 Variation of applications for titles
4
The regulations may authorise the Designated Authority to issue an
5
instrument varying an application for a title for the sole purpose of
6
Introduction Chapter 1
Interpretation Part 1.2
Datum provisions Division 2
Section 28
Offshore Petroleum Bill 2005 No. , 2005 43
relabelling a point, line or area by reference to geographic
1
coordinates based on the current datum.
2
28 No change to actual position of point, line or area
3
This Subdivision does not authorise any change to the position on
4
the surface of the Earth of a point, line or area.
5
29 Transitional regulations
6
The regulations may make provision for matters of a transitional
7
nature arising from the change from the previous datum to the
8
current datum.
9
30 International Seabed Agreements
10
This Subdivision has effect subject to section 31.
11
Note:
Section 31 deals with International Seabed Agreements.
12
Subdivision B--Certain points etc. specified in an International
13
Seabed Agreement to be ascertained by other means
14
31 Certain points etc. specified in an International Seabed
15
Agreement to be ascertained by other means
16
(1) This section applies if, for the purposes of this Act or the
17
regulations, or for the purposes of an instrument under this Act or
18
the regulations, it is necessary to determine the position on the
19
surface of the Earth of:
20
(a) a point or line specified in an International Seabed
21
Agreement; or
22
(b) a point on, or part of, such a line.
23
(2) That position must be determined in accordance with:
24
(a) that Agreement; or
25
(b) if that Agreement is varied--in accordance with that
26
Agreement as varied for the time being.
27
(3) In this section:
28
Chapter 1 Introduction
Part 1.2 Interpretation
Division 2 Datum provisions
Section 31
44 Offshore Petroleum Bill 2005 No. , 2005
International Seabed Agreement means:
1
(a) the Agreement between Australia and Indonesia establishing
2
certain seabed boundaries signed at Canberra on 18 May
3
1971; or
4
(b) the Agreement between Australia and Indonesia establishing
5
certain seabed boundaries in the area of the Timor and
6
Arafura Seas supplementary to the Agreement referred to in
7
paragraph (a) and signed at Jakarta on 9 October 1972; or
8
(c) the Agreement between Australia and Indonesia concerning
9
certain boundaries between Papua New Guinea and Indonesia
10
signed at Jakarta on 12 February 1973; or
11
(d) the Treaty between Australia and the Independent State of
12
Papua New Guinea concerning sovereignty and maritime
13
boundaries in the area between the 2 countries, including the
14
area known as the Torres Strait, and related matters that was
15
signed at Sydney on 18 December 1978; or
16
(e) the New Zealand boundary treaty.
17
Introduction Chapter 1
Interpretation Part 1.2
Apportionment of petroleum recovered from adjoining title areas Division 3
Section 32
Offshore Petroleum Bill 2005 No. , 2005 45
1
Division 3--Apportionment of petroleum recovered from
2
adjoining title areas
3
32 Title
4
In this Division:
5
title means:
6
(a) an exploration permit; or
7
(b) a retention lease; or
8
(c) a production licence.
9
33 Titleholder and title area
10
For the purposes of this Division, the table has effect:
11
12
Titleholder and title area
Item
In the case of...
the titleholder is...
and the title area is...
1
an exploration permit
the permittee
the permit area.
2
a retention lease
the lessee
the lease area.
3
a production licence
the licensee
the licence area.
34 Petroleum recovered through inclined well
13
For the purposes of this Act, if:
14
(a) a wellhead is situated in the title area of a title (the first title);
15
and
16
(b) the well from that wellhead is inclined so as to enter a
17
petroleum pool at a place within an adjoining title area of a
18
title (the second title) of the same titleholder; and
19
(c) the pool does not extend to the title area of the first title;
20
any petroleum recovered through that well is taken to have been
21
recovered in the adjoining title area under the second title.
22
Chapter 1 Introduction
Part 1.2 Interpretation
Division 3 Apportionment of petroleum recovered from adjoining title areas
Section 35
46 Offshore Petroleum Bill 2005 No. , 2005
35 Petroleum pool straddling 2 title areas etc.
1
(1) For the purposes of this Act, if:
2
(a) a petroleum pool is partly in the title area of a title and partly
3
in an adjoining title area of a title of the same titleholder
4
(whether in the same offshore area or not); and
5
(b) petroleum is recovered from that pool through a well or wells
6
in one or both of the title areas;
7
then:
8
(c) there is taken to have been recovered in each of the title
9
areas, under the title in relation to the title area, such
10
proportion of all petroleum so recovered as may reasonably
11
be treated as being derived from that area, having regard to
12
the nature and probable extent of the pool; and
13
(d) the respective proportions are to be determined by agreement
14
between:
15
(i) the titleholder; and
16
(ii) the Joint Authority;
17
or, in the absence of agreement, by the Federal Court or a
18
relevant Supreme Court on the application of the titleholder
19
or the Joint Authority.
20
Supreme Court
21
(2) A reference in this section to a relevant Supreme Court is a
22
reference to the Supreme Court of the State, or one of the States, in
23
the offshore area of which the petroleum pool is wholly or partly
24
situated.
25
Northern Territory
26
(3) This section applies to the Northern Territory as if that Territory
27
were a State.
28
36 Petroleum pool straddling Commonwealth title area and State
29
title area etc.
30
(1) For the purposes of this Act, if:
31
Introduction Chapter 1
Interpretation Part 1.2
Apportionment of petroleum recovered from adjoining title areas Division 3
Section 37
Offshore Petroleum Bill 2005 No. , 2005 47
(a) a petroleum pool is partly in the title area of a title and partly
1
in an area (the State title area) in which the titleholder has
2
authority under the law of a State to explore for, or recover,
3
petroleum; and
4
(b) petroleum is recovered from that pool through a well or wells
5
in the title area of the title, the State title area, or both;
6
then:
7
(c) there is taken to have been recovered in the title area of the
8
title such proportion of all petroleum so recovered as may
9
reasonably be treated as being derived from that area, having
10
regard to the nature and probable extent of the pool; and
11
(d) that proportion is to be determined by agreement between:
12
(i) the titleholder of the title; and
13
(ii) the Joint Authority; and
14
(iii) the responsible State Minister;
15
or, in the absence of agreement, by the Federal Court or a
16
relevant Supreme Court on the application of:
17
(iv) the titleholder of the title; or
18
(v) the Joint Authority; or
19
(vi) the responsible State Minister.
20
Supreme Court
21
(2) A reference in this section to a relevant Supreme Court is a
22
reference to the Supreme Court of the State, or one of the States, in
23
the offshore area of which the petroleum pool is wholly or partly
24
situated.
25
Northern Territory
26
(3) This section applies to the Northern Territory as if:
27
(a) that Territory were a State; and
28
(b) the responsible Northern Territory Minister were the
29
responsible State Minister of that State.
30
37 Unit development
31
For the purposes of this Act, if:
32
Chapter 1 Introduction
Part 1.2 Interpretation
Division 3 Apportionment of petroleum recovered from adjoining title areas
Section 37
48 Offshore Petroleum Bill 2005 No. , 2005
(a) a petroleum pool is:
1
(i) partly in a production licence area; and
2
(ii) partly in another area (whether in the offshore area or
3
not) in relation to which another person has authority
4
(whether under this Act or under the law of a State or
5
the Northern Territory) to explore for or recover
6
petroleum; and
7
(b) a unit development agreement in accordance with section 163
8
is in force between the licensee and that other person; and
9
(c) petroleum is recovered from that pool through a well or wells
10
in the licence area, the other area or both;
11
there is taken to have been recovered in that licence area such
12
proportion of all petroleum so recovered as is specified in, or
13
determined in accordance with, the agreement.
14
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Joint Authorities Division 1
Section 38
Offshore Petroleum Bill 2005 No. , 2005 49
1
Part 1.3--Joint Authorities and Designated
2
Authorities
3
Division 1--Joint Authorities
4
38 Joint Authorities
5
(1) For the purposes of this Act, there is a Joint Authority for each
6
offshore area.
7
State
8
(2) The Joint Authority for an offshore area of a State is constituted
9
by:
10
(a) the responsible State Minister; and
11
(b) the responsible Commonwealth Minister;
12
and is to be known as the Commonwealth-[name of State] Offshore
13
Petroleum Joint Authority.
14
Northern Territory
15
(3) The Joint Authority for the offshore area of the Northern Territory
16
is constituted by:
17
(a) the responsible Northern Territory Minister; and
18
(b) the responsible Commonwealth Minister;
19
and is to be known as the Commonwealth-Northern Territory
20
Offshore Petroleum Joint Authority.
21
External Territories
22
(4) The responsible Commonwealth Minister is the Joint Authority for
23
the offshore area of each of the following external Territories:
24
(a) Norfolk Island;
25
(b) the Territory of Christmas Island;
26
(c) the Territory of Cocos (Keeling) Islands;
27
(d) the Territory of Ashmore and Cartier Islands;
28
(e) the Territory of Heard Island and McDonald Islands;
29
Chapter 1 Introduction
Part 1.3 Joint Authorities and Designated Authorities
Division 1 Joint Authorities
Section 39
50 Offshore Petroleum Bill 2005 No. , 2005
and is to be known as the [name of Territory] Offshore Petroleum
1
Joint Authority.
2
Note:
For example, the Joint Authority for the offshore area of the Territory
3
of Ashmore and Cartier Islands is to be known as the Territory of
4
Ashmore and Cartier Islands Offshore Petroleum Joint Authority.
5
39 Functions and powers of Joint Authorities
6
A Joint Authority for a State or Territory has, in relation to the
7
offshore area for that State or Territory, the functions and powers
8
that this Act confers on a Joint Authority.
9
40 Procedure of Joint Authority
10
(1) A Joint Authority for a State or the Northern Territory may
11
conduct its business:
12
(a) at meetings of the Joint Authority; or
13
(b) by written or other communication between the members of
14
the Joint Authority.
15
(2) A written communication under paragraph (1)(b) is not a
16
legislative instrument for the purposes of the Legislative
17
Instruments Act 2003.
18
41 Decision-making
19
(1) This section applies to decisions to be made by a Joint Authority
20
for a State or the Northern Territory on matters that are within the
21
Joint Authority's functions or powers.
22
(2) If:
23
(a) the responsible Commonwealth Minister; and
24
(b) the responsible State Minister or the responsible Northern
25
Territory Minister, as the case may be;
26
disagree about a decision, the responsible Commonwealth Minister
27
may decide the matter, and the responsible Commonwealth
28
Minister's decision has effect as the Joint Authority's decision.
29
(3) If:
30
(a) the responsible Commonwealth Minister gives:
31
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Joint Authorities Division 1
Section 42
Offshore Petroleum Bill 2005 No. , 2005 51
(i) in the case of a State--the responsible State Minister; or
1
(ii) in the case of the Northern Territory--the responsible
2
Northern Territory Minister;
3
written notice of a decision that the responsible
4
Commonwealth Minister thinks should be made on a matter;
5
and
6
(b) 30 days pass after the notice is given, and:
7
(i) in the case of a State--the responsible State Minister
8
has not told the responsible Commonwealth Minister
9
what decision the responsible State Minister thinks
10
should be made; or
11
(ii) in the case of the Northern Territory--the responsible
12
Northern Territory Minister has not told the responsible
13
Commonwealth Minister what decision the responsible
14
Northern Territory Minister thinks should be made;
15
the responsible Commonwealth Minister may decide the matter,
16
and the responsible Commonwealth Minister's decision has effect
17
as the Joint Authority's decision.
18
42 Opinion or state of mind of Joint Authority
19
For the purposes of this Act, the opinion or state of mind of the
20
Joint Authority for a State or the Northern Territory is:
21
(a) if:
22
(i) the responsible Commonwealth Minister; and
23
(ii) the responsible State Minister or the responsible
24
Northern Territory Minister, as the case may be;
25
agree on the matter concerned--the opinion or state of mind
26
of the 2 Ministers; or
27
(b) if the 2 Ministers disagree--the opinion or state of mind of
28
the responsible Commonwealth Minister.
29
43 Records of decisions of Joint Authority
30
(1) The Designated Authority must cause to be kept written records of
31
the decisions of the Joint Authority for a State or the Northern
32
Territory.
33
Chapter 1 Introduction
Part 1.3 Joint Authorities and Designated Authorities
Division 1 Joint Authorities
Section 44
52 Offshore Petroleum Bill 2005 No. , 2005
(2) A record kept under subsection (1) is prima facie evidence that the
1
decision was duly made as recorded if the record is signed by a
2
person who was a member of the Joint Authority at the time when
3
the decision was made.
4
(3) A record kept under subsection (1) is not a legislative instrument
5
for the purposes of the Legislative Instruments Act 2003.
6
44 Signing of documents
7
(1) If a document is signed by the Designated Authority on behalf of
8
the Joint Authority for a State or the Northern Territory, the
9
document is taken to have been duly executed by the Joint
10
Authority.
11
(2) The document is taken to be in accordance with a decision of the
12
Joint Authority unless the contrary is proved.
13
45 Communications with Joint Authority
14
All communications to or by the Joint Authority for a State or the
15
Northern Territory are to be made through the Designated
16
Authority.
17
46 Judicial notice of signature of member of a Joint Authority
18
Joint Authority for a State or the Northern Territory
19
(1) All courts must take judicial notice of:
20
(a) the signature of a person who is, or has been:
21
(i) a member of the Joint Authority for a State or the
22
Northern Territory; or
23
(ii) a delegate of the Joint Authority for a State or the
24
Northern Territory; and
25
(b) the fact that the person is, or was at a particular time:
26
(i) a member of the Joint Authority for that State or the
27
Northern Territory, as the case may be; or
28
(ii) a delegate of the Joint Authority for that State or the
29
Northern Territory, as the case may be.
30
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Joint Authorities Division 1
Section 47
Offshore Petroleum Bill 2005 No. , 2005 53
Joint Authority for an external Territory
1
(2) All courts must take judicial notice of:
2
(a) the signature of a person who is, or has been:
3
(i) the Joint Authority for the offshore area of an external
4
Territory; or
5
(ii) a delegate of the Joint Authority for the offshore area of
6
an external Territory; and
7
(b) the fact that the person is, or was at a particular time:
8
(i) the Joint Authority for that offshore area; or
9
(ii) a delegate of the Joint Authority for that offshore area.
10
Definition
11
(3) In this section:
12
court includes a person authorised to receive evidence:
13
(a) by a law of the Commonwealth, a State or a Territory; or
14
(b) by consent of parties.
15
47 Issue of documents, and service of notices, on behalf of Joint
16
Authority
17
(1) If this Act requires or allows a Joint Authority for a State or the
18
Northern Territory to:
19
(a) execute or issue an instrument; or
20
(b) give a notice; or
21
(c) communicate a matter;
22
the Designated Authority is to do so on behalf of the Joint
23
Authority in accordance with a decision of the Joint Authority.
24
(2) For the purposes of any proceedings:
25
(a) an instrument that purports to be executed or issued by the
26
Designated Authority on behalf of the Joint Authority is
27
taken to have been executed or issued in accordance with a
28
decision of the Joint Authority; and
29
(b) a notice that purports to be given by the Designated
30
Authority on behalf of the Joint Authority is taken to have
31
Chapter 1 Introduction
Part 1.3 Joint Authorities and Designated Authorities
Division 1 Joint Authorities
Section 48
54 Offshore Petroleum Bill 2005 No. , 2005
been given in accordance with a decision of the Joint
1
Authority; and
2
(c) a communication that purports to be made by the Designated
3
Authority on behalf of the Joint Authority is taken to have
4
been made in accordance with a decision of the Joint
5
Authority;
6
unless the contrary is proved.
7
48 Delegation by a Joint Authority for a State or the Northern
8
Territory
9
(1) A Joint Authority for a State or the Northern Territory may, by
10
written instrument, delegate any or all of the functions or powers of
11
the Joint Authority under this Act to 2 persons together.
12
(2) A delegation under this section:
13
(a) must specify one person as representing the responsible
14
Commonwealth Minister; and
15
(b) must specify the other person as representing the responsible
16
State Minister or responsible Northern Territory Minister of
17
the Joint Authority; and
18
(c) must be signed by both members of the Joint Authority.
19
Note:
See also sections 34AA and 34AB of the Acts Interpretation Act 1901.
20
(3) If the Joint Authority delegates a function or power under this
21
section, the delegation continues in force despite:
22
(a) a vacancy in the office of responsible Commonwealth
23
Minister; or
24
(b) a change in the identity of the holder of the office of
25
responsible Commonwealth Minister; or
26
(c) a vacancy in the office of responsible State Minister or
27
responsible Northern Territory Minister, as the case may be;
28
or
29
(d) a change in the identity of the holder of the office of
30
responsible State Minister or responsible Northern Territory
31
Minister, as the case may be.
32
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Joint Authorities Division 1
Section 49
Offshore Petroleum Bill 2005 No. , 2005 55
(4) Despite subsection (3), a delegation under this section may be
1
revoked by the Joint Authority in accordance with subsection 33(3)
2
of the Acts Interpretation Act 1901.
3
(5) If a delegation is made under this section, sections 41 and 42 do
4
not apply to the delegates.
5
(6) If the delegates are unable to agree on a matter requiring decision,
6
they must refer the matter to the Joint Authority.
7
(7) In the application to the delegates of a provision of this Act
8
containing a reference to the opinion or state of mind of the Joint
9
Authority, the reference is to be read as a reference to the opinion
10
or state of mind of the 2 delegates of the Joint Authority unless
11
they disagree.
12
(8) A Joint Authority may delegate a function or power to an APS
13
employee only if the APS employee is an SES employee or acting
14
SES employee.
15
Note:
The expressions APS employee, SES employee and acting SES
16
employee are defined in section 17AA of the Acts Interpretation Act
17
1901.
18
(9) A referral under subsection (6) is not a legislative instrument for
19
the purposes of the Legislative Instruments Act 2003.
20
49 Delegation by Joint Authority for an external Territory
21
(1) The Joint Authority for the offshore area of any of the following
22
external Territories:
23
(a) Norfolk Island;
24
(b) the Territory of Christmas Island;
25
(c) the Territory of Cocos (Keeling) Islands;
26
(d) the Territory of Ashmore and Cartier Islands;
27
(e) the Territory of Heard Island and McDonald Islands;
28
may, by written instrument, delegate to a person any or all of the
29
functions or powers of the Joint Authority under this Act or the
30
regulations.
31
Note:
See also sections 34AA and 34AB of the Acts Interpretation Act 1901.
32
Chapter 1 Introduction
Part 1.3 Joint Authorities and Designated Authorities
Division 1 Joint Authorities
Section 49
56 Offshore Petroleum Bill 2005 No. , 2005
(2) If the Joint Authority delegates a function or power under this
1
section, the delegation continues in force despite:
2
(a) a vacancy in the office of Joint Authority; or
3
(b) a change in the identity of the holder of the office of Joint
4
Authority.
5
(3) Despite subsection (2), a delegation under this section may be
6
revoked by the Joint Authority in accordance with subsection 33(3)
7
of the Acts Interpretation Act 1901.
8
(4) A copy of each instrument making, varying or revoking a
9
delegation under this section must be published in the Gazette.
10
(5) A Joint Authority may delegate a function or power to an APS
11
employee only if the APS employee is an SES employee or acting
12
SES employee.
13
Note:
The expressions APS employee, SES employee and acting SES
14
employee are defined in section 17AA of the Acts Interpretation Act
15
1901.
16
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Designated Authorities Division 2
Section 50
Offshore Petroleum Bill 2005 No. , 2005 57
1
Division 2--Designated Authorities
2
50 Designated Authorities
3
(1) For the purposes of this Act, there is a Designated Authority for
4
each offshore area.
5
State
6
(2) The Designated Authority for the offshore area of a State is the
7
responsible State Minister.
8
Northern Territory
9
(3) The Designated Authority for the offshore area of the Northern
10
Territory is the responsible Northern Territory Minister.
11
External Territories
12
(4) The responsible Commonwealth Minister is the Designated
13
Authority for the offshore area of each of the following external
14
Territories:
15
(a) Norfolk Island;
16
(b) the Territory of Christmas Island;
17
(c) the Territory of Cocos (Keeling) Islands;
18
(d) the Territory of Ashmore and Cartier Islands;
19
(e) the Territory of Heard Island and McDonald Islands.
20
51 Functions and powers of Designated Authorities
21
State
22
(1) A Designated Authority for a State has, in relation to the offshore
23
area for that State, the functions and powers that this Act confers
24
on a Designated Authority.
25
Chapter 1 Introduction
Part 1.3 Joint Authorities and Designated Authorities
Division 2 Designated Authorities
Section 52
58 Offshore Petroleum Bill 2005 No. , 2005
Northern Territory
1
(2) The Designated Authority for the Northern Territory has, in
2
relation to the offshore area for the Northern Territory, the
3
functions and powers that this Act confers on a Designated
4
Authority.
5
External Territories
6
(3) The Designated Authority for any of the following external
7
Territories has, in relation to the offshore area for that Territory,
8
the functions and powers that this Act confers on a Designated
9
Authority:
10
(a) Norfolk Island;
11
(b) the Territory of Christmas Island;
12
(c) the Territory of Cocos (Keeling) Islands;
13
(d) the Territory of Ashmore and Cartier Islands;
14
(e) the Territory of Heard Island and McDonald Islands.
15
52 Delegation by Designated Authority
16
(1) A Designated Authority may, by written instrument, delegate to a
17
person any or all of the functions or powers of the Designated
18
Authority under this Act or the regulations.
19
Note:
See also sections 34AA and 34AB of the Acts Interpretation Act 1901.
20
(2) If a Designated Authority delegates a function or power under this
21
section, the delegation continues in force despite:
22
(a) a vacancy in the office of Designated Authority; or
23
(b) a change in the identity of the holder of the office of
24
Designated Authority.
25
(3) Despite subsection (2), a delegation under this section may be
26
revoked by a Designated Authority in accordance with subsection
27
33(3) of the Acts Interpretation Act 1901.
28
(4) A copy of each instrument making, varying or revoking a
29
delegation under this section must be published in the Gazette.
30
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Designated Authorities Division 2
Section 53
Offshore Petroleum Bill 2005 No. , 2005 59
(5) A Designated Authority may delegate a function or power to an
1
APS employee only if the APS employee is an SES employee or
2
acting SES employee.
3
Note:
The expressions APS employee, SES employee and acting SES
4
employee are defined in section 17AA of the Acts Interpretation Act
5
1901.
6
53 Judicial notice of signature of Designated Authority
7
(1) All courts must take judicial notice of:
8
(a) the signature of a person who is, or has been:
9
(i) the Designated Authority for an offshore area; or
10
(ii) a delegate of the Designated Authority for an offshore
11
area; and
12
(b) the fact that the person is, or was at a particular time:
13
(i) the Designated Authority for that offshore area; or
14
(ii) a delegate of the Designated Authority for that offshore
15
area.
16
(2) In this section:
17
court includes a person authorised to receive evidence:
18
(a) by a law of the Commonwealth, a State or a Territory; or
19
(b) by consent of parties.
20
Chapter 1 Introduction
Part 1.3 Joint Authorities and Designated Authorities
Division 3 Finance
Section 54
60 Offshore Petroleum Bill 2005 No. , 2005
1
Division 3--Finance
2
54 Payments by the Commonwealth to Western Australia--Royalty
3
Act payments
4
Payments to Western Australia
5
(1) If, during a particular month, the Commonwealth receives:
6
(a) an amount of royalty payable under the Royalty Act by the
7
registered holder of:
8
(i) an exploration permit; or
9
(ii) a retention lease; or
10
(iii) a production licence;
11
in relation to petroleum recovered under the permit, lease or
12
licence in the offshore area of Western Australia; or
13
(b) an amount payable under Part 4.6 because of late payment of
14
any such royalty;
15
then, before the end of the next month, the Commonwealth must
16
pay to Western Australia an amount worked out using the formula:
17
Royalty rate - 4
Amount received by
the Commonwealth
Royalty rate
18
where:
19
royalty rate means the percentage rate at which royalty is payable
20
by the holder under the Royalty Act in relation to that petroleum
21
(disregarding any determination under section 9 of the Royalty Act
22
in relation to a well).
23
Reduction of payments to Western Australia--refunds of royalty
24
(2) If:
25
(a) the Commonwealth is liable to pay an amount under
26
subsection (1) because the Commonwealth received, during a
27
particular month, an amount mentioned in that subsection;
28
and
29
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Finance Division 3
Section 55
Offshore Petroleum Bill 2005 No. , 2005 61
(b) during that month, the Commonwealth paid a refund under
1
paragraph 16(3)(b) of the Royalty Act to the registered
2
holder of:
3
(i) an exploration permit; or
4
(ii) a retention lease; or
5
(iii) a production licence;
6
in respect of an amount of royalty payable under the Royalty
7
Act;
8
the total of the amounts payable by the Commonwealth as
9
mentioned in paragraph (a) is to be reduced by an amount worked
10
out using the formula:
11
Amount paid under subsection (1)
Adjusted amount
in respect of the amount of royalty
12
where:
13
adjusted amount means the amount that would have been paid
14
under subsection (1) in respect of the amount of royalty if it were
15
assumed that the provisional royalty (within the meaning of
16
section 16 of the Royalty Act) had been equal to the determined
17
royalty (within the meaning of that section).
18
55 Payments by the Commonwealth to the States and the Northern
19
Territory
20
Scope
21
(1) This section applies if, during a particular month, the
22
Commonwealth receives an amount (the received amount):
23
(a) that is payable under:
24
(i) this Act (other than an amount paid for the grant of a
25
cash-bid exploration permit, a special exploration
26
permit or a section 153 production licence); or
27
(ii) the Annual Fees Act; or
28
(iii) the Registration Fees Act;
29
in connection with a title or other document that relates to:
30
(iv) a block; or
31
(v) an infrastructure facility; or
32
Chapter 1 Introduction
Part 1.3 Joint Authorities and Designated Authorities
Division 3 Finance
Section 55
62 Offshore Petroleum Bill 2005 No. , 2005
(vi) a pipeline;
1
in the offshore area of a State or the Northern Territory; or
2
(b) that is an amount (other than a royalty) payable to the
3
Designated Authority, on behalf of the Commonwealth,
4
under, or under regulations made for the purposes of:
5
(i) Chapter 2; or
6
(ii) Chapter 3; or
7
(iii) Chapter 5; or
8
(iv) Schedule 5;
9
in relation to the offshore area of a State or the Northern
10
Territory; or
11
(c) that is payable to the Commonwealth under subsection
12
308(3) or 314(4) or (5) in relation to costs or expenses
13
incurred by the Designated Authority of a State or the
14
Northern Territory.
15
Payments
16
(2) Before the end of the next month, the Commonwealth must pay to
17
the State or to the Northern Territory, as the case may be, an
18
amount equal to:
19
(a) if the received amount includes a component that is
20
attributable to goods and services tax--so much of the
21
received amount as does not consist of that component; or
22
(b) in any other case--the received amount.
23
Safety Authority
24
(3) This section does not apply to an amount payable to the Safety
25
Authority on behalf of the Commonwealth.
26
Definition
27
(4) In this section:
28
title means an exploration permit, retention lease, production
29
licence, infrastructure licence, pipeline licence, special prospecting
30
authority or access authority.
31
Introduction Chapter 1
Joint Authorities and Designated Authorities Part 1.3
Finance Division 3
Section 56
Offshore Petroleum Bill 2005 No. , 2005 63
56 Appropriation
1
The Consolidated Revenue Fund is appropriated for the purposes
2
of this Division.
3
Chapter 1 Introduction
Part 1.4 Application of State and Territory laws in offshore areas
Section 57
64 Offshore Petroleum Bill 2005 No. , 2005
1
Part 1.4--Application of State and Territory laws in
2
offshore areas
3
4
57 Simplified outline
5
The following is a simplified outline of this Part:
6
·
The general body of laws in force in a State or Territory
7
applies, as laws of the Commonwealth, to petroleum
8
exploration, exploitation and conveyance activities in the
9
offshore area of that State or Territory.
10
·
However, prescribed State or Northern Territory occupational
11
health and safety laws do not apply, as laws of the
12
Commonwealth, in relation to a facility located in the offshore
13
area of that State or the Northern Territory.
14
58 Meaning of laws
15
For the purposes of this Part, laws include:
16
(a) written laws; and
17
(b) unwritten laws (for example, the common law); and
18
(c) instruments having effect under laws.
19
59 Application of State and Territory laws in offshore areas
20
(1) The laws in force in a State or Territory (other than laws of the
21
Commonwealth) apply, as provided by this section, as laws of the
22
Commonwealth in the offshore area of that State or Territory as if
23
that area were:
24
(a) part of that State or Territory; and
25
(b) part of the Commonwealth.
26
Note:
See also sections 60 to 68.
27
Introduction Chapter 1
Application of State and Territory laws in offshore areas Part 1.4
Section 59
Offshore Petroleum Bill 2005 No. , 2005 65
(2) For the purposes of this Act, the provisions of laws applied under
1
subsection (1) are to be known as the applied provisions.
2
(3) Subsection (1) has effect subject to:
3
(a) this Act; and
4
(b) the regulations.
5
(4) The laws referred to in subsection (1) apply in relation to acts,
6
omissions, matters, circumstances and things touching, concerning,
7
arising out of or connected with:
8
(a) exploring the seabed or subsoil of the offshore area for
9
petroleum, and exploiting the petroleum which occurs as a
10
natural resource of that seabed or subsoil; or
11
(b) the conveyance of petroleum (wherever recovered) across the
12
offshore area.
13
(5) The laws referred to in subsection (1) apply:
14
(a) to and in relation to:
15
(i) an act or omission that takes place in, on, above, below
16
or in the vicinity of; and
17
(ii) a matter, circumstance or thing that exists or arises in
18
relation to or in connection with;
19
a vessel, aircraft, structure or installation, or equipment or
20
other property, that is in the offshore area for any reason
21
touching, concerning, arising out of or connected with:
22
(iii) exploring the seabed or subsoil of the offshore area for
23
petroleum, or exploiting the petroleum which occurs as
24
a natural resource of that seabed or subsoil; or
25
(iv) the conveyance of petroleum (wherever recovered)
26
across the offshore area; and
27
(b) to and in relation to a person who:
28
(i) is in the offshore area for a reason of the kind referred to
29
in paragraph (a); or
30
(ii) is in, on, above, below or in the vicinity of a vessel,
31
aircraft, structure or installation, or equipment or other
32
property, that is in the offshore area for a reason of the
33
kind referred to in paragraph (a); and
34
(c) to and in relation to a person in relation to:
35
Chapter 1 Introduction
Part 1.4 Application of State and Territory laws in offshore areas
Section 60
66 Offshore Petroleum Bill 2005 No. , 2005
(i) the carrying on by the person of any operation; or
1
(ii) the doing by the person of any work;
2
in the offshore area for a reason of the kind referred to in
3
paragraph (a).
4
(6) Subsection (5) does not limit subsection (4).
5
(7) For the purposes of this section, a law is taken to be a law in force
6
in a State or Territory even though that law applies to part only of
7
that State or Territory.
8
60 Disapplication and modification of laws
9
(1) The regulations may provide that a law:
10
(a) does not apply by reason of section 59 in an offshore area; or
11
(b) applies by reason of section 59 in an offshore area with such
12
modifications as are specified in the regulations.
13
(2) For the purposes of subsection (1), modifications includes
14
additions, omissions and substitutions.
15
(3) Regulations made for the purposes of subsection (1) may make
16
provision for, and in relation to:
17
(a) investing a court of a State with federal jurisdiction; or
18
(b) conferring jurisdiction on a court of a Territory.
19
61 Limit on application of laws
20
Section 59 does not give to the provisions of a law of a State or the
21
Northern Territory an operation, as a law of the Commonwealth,
22
that they would not have, as a law of the State or the Northern
23
Territory, if it were assumed that the offshore area were within the
24
part of the scheduled area for the State or the Northern Territory
25
that is on the landward side of the offshore area.
26
62 Inconsistent law not applied
27
Section 59 does not apply a law in so far as the law would be
28
inconsistent with a law of the Commonwealth (including this Act).
29
Introduction Chapter 1
Application of State and Territory laws in offshore areas Part 1.4
Section 63
Offshore Petroleum Bill 2005 No. , 2005 67
63 Criminal laws not applied
1
(1) Section 59 does not apply laws that are substantive criminal laws,
2
or laws of criminal investigation, procedure and evidence, within
3
the meaning of Schedule 1 to the Crimes at Sea Act 2000.
4
(2) This Act does not detract from the operation of the Crimes at Sea
5
Act 2000.
6
64 Tax laws not applied
7
Section 59 does not operate so as to impose a tax.
8
65 Appropriation law not applied
9
Section 59 does not operate so as to appropriate any public money
10
of a Territory.
11
66 Applied laws not to confer Commonwealth judicial power
12
Section 59 does not operate so as to confer the judicial power of
13
the Commonwealth on a court, tribunal, authority or officer of a
14
State or Territory.
15
67 Applied laws not to contravene constitutional restrictions on
16
conferral of powers on courts
17
Section 59 does not operate so as to confer on a court of a State or
18
Territory a power that cannot, under the Constitution, be conferred
19
by the Parliament on such a court.
20
68 State or Northern Territory occupational health and safety laws
21
do not apply in relation to facilities
22
State or Northern Territory OHS laws are not applied by
23
section 59
24
(1) Section 59 of this Act, and section 6 of the Ashmore and Cartier
25
Islands Acceptance Act 1933, do not apply a law in relation to:
26
Chapter 1 Introduction
Part 1.4 Application of State and Territory laws in offshore areas
Section 68
68 Offshore Petroleum Bill 2005 No. , 2005
(a) a facility located in the offshore area of a State, the Northern
1
Territory or the Territory of Ashmore and Cartier Islands; or
2
(b) a person at such a facility; or
3
(c) a person near such a facility, to the extent to which the
4
person is affected by:
5
(i) such a facility; or
6
(ii) activities that take place at such a facility; or
7
(d) activities that take place at such a facility;
8
if the law is:
9
(e) a law of that State or the Northern Territory; and
10
(f) prescribed in the regulations.
11
(2) A law prescribed under subsection (1) must be:
12
(a) a law relating to occupational health and safety; or
13
(b) a law relating to occupational health and safety and to other
14
matters.
15
State or Northern Territory OHS laws do not apply of their own
16
force
17
(3) A law that is:
18
(a) a law of a State or the Northern Territory; and
19
(b) prescribed under subsection (1);
20
does not apply, by force of the law of that State or the Northern
21
Territory, in relation to:
22
(c) a facility located in the offshore area of that State or the
23
Northern Territory; or
24
(d) a person at such a facility; or
25
(e) a person near such a facility, to the extent to which the
26
person is affected by:
27
(i) such a facility; or
28
(ii) activities that take place at such a facility; or
29
(f) activities that take place at such a facility.
30
Introduction Chapter 1
Application of State and Territory laws in offshore areas Part 1.4
Section 68
Offshore Petroleum Bill 2005 No. , 2005 69
Substantive criminal provisions of State or Northern Territory
1
OHS laws are not applied by Crimes at Sea Act 2000
2
(4) Despite subclauses 2(1) and (2) of Schedule 1 to the Crimes at Sea
3
Act 2000, a law of a State or the Northern Territory that is:
4
(a) referred to in those subclauses; and
5
(b) prescribed in the regulations;
6
does not apply in relation to:
7
(c) a facility located in the offshore area of that State, the
8
Northern Territory or the Territory of Ashmore and Cartier
9
Islands; or
10
(d) a person at such a facility; or
11
(e) a person near such a facility, to the extent to which the
12
person is affected by:
13
(i) such a facility; or
14
(ii) activities that take place at such a facility; or
15
(f) activities that take place at such a facility;
16
whether or not that application is:
17
(g) by force of the law of that State or the Northern Territory; or
18
(h) by force of section 6 of the Ashmore and Cartier Islands
19
Acceptance Act 1933; or
20
(i) by force of subclause 2(2) of that Schedule.
21
(5) A law prescribed under subsection (4) must be:
22
(a) a law relating to occupational health and safety; or
23
(b) a law relating to occupational health and safety and to other
24
matters.
25
Substantive criminal provisions of State or Northern Territory
26
listed OHS laws are not applied by Crimes at Sea Act 2000
27
(6) Despite subclauses 2(1) and (2) of Schedule 1 to the Crimes at Sea
28
Act 2000, provisions of a State or Territory PSLA, or of regulations
29
under a State or Territory PSLA, that substantially correspond to
30
the listed OHS laws do not apply in relation to:
31
(a) a facility located in the offshore area of that State, the
32
Northern Territory or the Territory of Ashmore and Cartier
33
Islands; or
34
Chapter 1 Introduction
Part 1.4 Application of State and Territory laws in offshore areas
Section 69
70 Offshore Petroleum Bill 2005 No. , 2005
(b) a person at such a facility; or
1
(c) a person near such a facility, to the extent to which the
2
person is affected by:
3
(i) such a facility; or
4
(ii) activities that take place at such a facility; or
5
(d) activities that take place at such a facility;
6
whether or not that application is:
7
(e) by force of the law of that State or the Northern Territory; or
8
(f) by force of section 6 of the Ashmore and Cartier Islands
9
Acceptance Act 1933; or
10
(g) by force of subclause 2(2) of that Schedule.
11
Definitions
12
(7) In this section:
13
facility has the same meaning as in Schedule 3.
14
law includes a part of a law.
15
State PSLA has the same meaning as in Part 4.8.
16
Territory PSLA has the same meaning as in Part 4.8.
17
Note:
See also section 350, which deals with the application of
18
Commonwealth maritime legislation in the offshore area of a State or
19
Territory.
20
69 Gas pipelines access legislation
21
(1) This section applies to an offshore area of a State or the Northern
22
Territory if the gas pipelines access legislation of the State or the
23
Northern Territory, as the case may be, is not in force (with or
24
without modifications) in the part of the scheduled area for the
25
State or the Northern Territory, as the case may be, that is on the
26
landward side of that offshore area.
27
(2) Despite any law that is in force as a law of the Commonwealth in
28
the offshore area of the State or Territory because of section 59, the
29
Gas Pipelines Access (Commonwealth) Act 1998 applies as a law
30
of the Commonwealth in that offshore area.
31
Introduction Chapter 1
Application of State and Territory laws in offshore areas Part 1.4
Section 70
Offshore Petroleum Bill 2005 No. , 2005 71
(3) This section has effect subject to section 192.
1
Note:
Section 192 is about common carriers.
2
(4) In this section:
3
Gas Pipelines Access Law has the same meaning as in subsection
4
5(1) of the Gas Pipelines Access (Commonwealth) Act 1998.
5
gas pipelines access legislation has the same meaning as in the
6
Gas Pipelines Access Law.
7
70 No limits on ordinary operation of law
8
This Part does not limit the operation that a law has apart from this
9
Part.
10
71 Jurisdiction of State courts
11
(1) The courts of a State are invested with federal jurisdiction in all
12
matters arising under the laws applied under section 59 in the
13
offshore area of the State.
14
(2) Jurisdiction is invested under subsection (1) within the limits (other
15
than the limits of locality) of the jurisdiction of the court (whether
16
those limits are limits as to subject matter or otherwise).
17
72 Jurisdiction of Territory courts
18
(1) Jurisdiction is conferred on the courts that have jurisdiction in a
19
Territory in all matters arising out of the laws applied under
20
section 59 in the offshore area of the Territory.
21
(2) Jurisdiction is conferred under subsection (1) within the limits
22
(other than the limits of locality) of the jurisdiction of the court
23
(whether those limits are limits as to subject matter or otherwise).
24
73 Validation of certain acts
25
If:
26
Chapter 1 Introduction
Part 1.4 Application of State and Territory laws in offshore areas
Section 74
72 Offshore Petroleum Bill 2005 No. , 2005
(a) a person or a court does an act in the purported exercise of a
1
power, or the purported performance of a function, under a
2
law of a State or Territory; and
3
(b) the act could have been done by the person or court in the
4
exercise of a power, or the performance of a function, under
5
the applied provisions;
6
the act is taken to have been done in the exercise of the power, or
7
performance of the function, under the applied provisions.
8
Note:
Applied provisions is defined by section 6.
9
74 Certain provisions not affected by this Part
10
The following provisions have effect despite anything in this Part:
11
(a) Division 2 of Part 1.2;
12
(b) Chapters 2 to 6;
13
(c) Schedule 5.
14
Regulation of activities relating to petroleum Chapter 2
Introduction Part 2.1
Section 75
Offshore Petroleum Bill 2005 No. , 2005 73
1
Chapter 2--Regulation of activities relating
2
to petroleum
3
Part 2.1--Introduction
4
5
75 Simplified outline
6
The following is a simplified outline of this Chapter:
7
·
This Chapter provides for the grant of the following titles:
8
(a)
an exploration permit (see Part 2.2);
9
(b)
a retention lease (see Part 2.3);
10
(c)
a production licence (see Part 2.4);
11
(d)
an infrastructure licence (see Part 2.5);
12
(e)
a pipeline licence (see Part 2.6);
13
(f)
a special prospecting authority (see Part 2.7);
14
(g)
an access authority (see Part 2.8).
15
·
An exploration permit authorises the permittee to explore for
16
petroleum in the permit area.
17
·
If a petroleum pool is identified in an exploration permit area,
18
the Designated Authority may declare a location over the
19
blocks to which the petroleum pool extends.
20
·
After the declaration of a location, the permittee may apply
21
for a retention lease or a production licence.
22
·
A retention lease is granted if the recovery of petroleum is not
23
currently commercially viable, but is likely to become
24
Chapter 2 Regulation of activities relating to petroleum
Part 2.1 Introduction
Section 75
74 Offshore Petroleum Bill 2005 No. , 2005
commercially viable within 15 years. The lessee may apply
1
for a production licence.
2
·
A production licence authorises the licensee to carry out
3
petroleum recovery operations in the licence area.
4
·
An infrastructure licence authorises the licensee to construct
5
and operate an infrastructure facility in the licence area.
6
·
A pipeline licence authorises the licensee to construct and
7
operate a pipeline.
8
·
A special prospecting authority authorises the holder to carry
9
on petroleum exploration operations in the authority area (but
10
not to make a well).
11
·
An access authority authorises the holder to carry on certain
12
petroleum exploration operations, and certain operations
13
relating to the recovery of petroleum, in the authority area (but
14
not to make a well).
15
·
Part 2.9 provides for the grant of scientific investigation
16
consents. A scientific investigation consent authorises the
17
holder to carry on petroleum exploration operations in the
18
course of a scientific investigation.
19
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
General provisions Division 1
Section 76
Offshore Petroleum Bill 2005 No. , 2005 75
1
Part 2.2--Exploration permits
2
Division 1--General provisions
3
76 Simplified outline
4
The following is a simplified outline of this Part:
5
·
It is an offence to explore for petroleum in an offshore area
6
except:
7
(a)
under an exploration permit; or
8
(b)
as otherwise authorised or required by or under this
9
Act.
10
·
This Part provides for the grant of exploration permits over
11
blocks in an offshore area.
12
·
An exploration permit authorises the permittee to explore for
13
petroleum in the permit area.
14
·
There are 3 types of exploration permits:
15
(a)
an exploration permit granted on the basis of work
16
program bidding (a work-bid exploration permit);
17
(b)
an exploration permit granted on the basis of cash
18
bidding (a cash-bid exploration permit);
19
(c)
an exploration permit granted over a surrendered
20
block or certain other blocks (a special exploration
21
permit).
22
·
If a petroleum pool is identified in an exploration permit area,
23
the Designated Authority may declare a location over the
24
blocks to which the petroleum pool extends.
25
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 1 General provisions
Section 77
76 Offshore Petroleum Bill 2005 No. , 2005
77 Prohibition of unauthorised exploration for petroleum in offshore
1
area
2
(1) A person commits an offence if:
3
(a) the person explores for petroleum; and
4
(b) the exploration occurs in an offshore area.
5
Penalty: Imprisonment for 5 years.
6
(2) Subsection (1) does not apply to conduct that is:
7
(a) authorised by an exploration permit; or
8
(b) otherwise authorised or required by or under this Act.
9
Note:
The defendant bears an evidential burden in relation to the matter in
10
subsection (2)--see subsection 13.3(3) of the Criminal Code.
11
78 Rights conferred by exploration permit
12
(1) An exploration permit authorises the permittee, in accordance with
13
the conditions (if any) to which the permit is subject:
14
(a) to explore for petroleum in the permit area; and
15
(b) to recover petroleum on an appraisal basis in the permit area;
16
and
17
(c) to carry on such operations, and execute such works, in the
18
permit area as are necessary for those purposes.
19
(2) The rights conferred on the permittee by subsection (1) are subject
20
to this Act and the regulations.
21
79 Conditions of exploration permits
22
(1) The Joint Authority may grant an exploration permit subject to
23
whatever conditions the Joint Authority thinks appropriate.
24
Note:
A grant of a permit may be a grant by way of renewal--see
25
section 10.
26
(2) The conditions (if any) must be specified in the permit.
27
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
General provisions Division 1
Section 79
Offshore Petroleum Bill 2005 No. , 2005 77
Permit to which Royalty Act applies
1
(3) An exploration permit to which the Royalty Act applies is subject
2
to a condition that the permittee will comply with the provisions of
3
the Royalty Act.
4
Note:
The Royalty Act applies to a small number of North West Shelf titles.
5
(4) Despite subsection (2), the condition mentioned in subsection (3)
6
does not need to be specified in the permit.
7
Work-bid exploration permits and special exploration permits
8
(5) Any or all of the following conditions may be specified in a
9
work-bid exploration permit or a special exploration permit:
10
(a) conditions requiring the permittee to carry out work in, or in
11
relation to, the permit area (including conditions requiring
12
the permittee to carry out the work during a period of 12
13
months or longer, or during periods each of which is 12
14
months or longer);
15
(b) conditions relating to the amounts that the permittee must
16
spend in carrying out such work;
17
(c) conditions requiring the permittee to comply with directions
18
that:
19
(i) relate to the matters covered by paragraphs (a) and (b);
20
and
21
(ii) are given in accordance with the permit.
22
(6) Subsection (5) does not limit subsection (1).
23
Cash-bid exploration permits
24
(7) Despite subsection (1), a cash-bid exploration permit must not be
25
granted subject to conditions requiring the permittee to:
26
(a) carry out work in, or in relation to, the permit area; or
27
(b) spend particular amounts on the carrying out of work in, or in
28
relation to, the permit area.
29
Note:
A grant of a permit may be a grant by way of renewal--see
30
section 10.
31
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 1 General provisions
Section 80
78 Offshore Petroleum Bill 2005 No. , 2005
80 Duration of exploration permit
1
(1) The duration of an exploration permit is worked out using the
2
table:
3
4
Duration of exploration permits
Item
This kind of permit...
remains in force...
1
an original 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
an 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.
5
Note 1:
For a special rule about the extension of the duration of an exploration
6
permit if the permittee applies for a retention lease or production
7
licence, see section 81.
8
Note 2:
For a special rule about the extension of the duration of exploration
9
permits pending decisions on renewal applications, see subsection
10
97(5).
11
Note 3:
For a special rule about the extension of the duration of cash-bid
12
exploration permits, see section 92.
13
Note 4:
For special rules about the extension of the duration of an exploration
14
permit following a suspension or exemption decision, see sections 228
15
and 230.
16
Note 5:
For the revocation of an exploration permit, see section 160 and
17
clause 8 of Schedule 4.
18
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
General provisions Division 1
Section 81
Offshore Petroleum Bill 2005 No. , 2005 79
Note 6:
For special rules about when an exploration permit ceases to be in
1
force following the grant of a retention lease or production licence, see
2
sections 121 and 148.
3
Note 7:
For the surrender of an exploration permit, see Part 2.12.
4
Note 8:
For the cancellation of an exploration permit, see Part 2.13.
5
81 Extension of exploration permit if permittee applies for retention
6
lease or production licence
7
(1) If:
8
(a) an exploration permit over a block or blocks cannot be
9
renewed or further renewed; and
10
(b) before the time when the permit would, apart from this
11
subsection, expire, the permittee applies to the Designated
12
Authority for the grant by the Joint Authority of a retention
13
lease or production licence over the block or one or more of
14
the blocks; and
15
(c) the block or blocks covered by the application are included in
16
a location;
17
the table has effect:
18
19
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 retention lease or
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 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.
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 1 General provisions
Section 81
80 Offshore Petroleum Bill 2005 No. , 2005
Extension of permit
Item
In this case...
the permit continues in force over
the block or blocks covered by the
application until...
3
the application is for a
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
1
section 80.
2
Note:
See the notes at the end of section 80.
3
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a work-bid exploration permit Division 2
Section 82
Offshore Petroleum Bill 2005 No. , 2005 81
1
Division 2--Obtaining a work-bid exploration permit
2
82 Application for work-bid exploration permit--advertising of
3
blocks
4
Invitation to apply for an exploration permit
5
(1) The Joint Authority may, by notice published in the Gazette:
6
(a) invite applications for the grant by the Joint Authority of an
7
exploration permit over the block, or any or all of the blocks,
8
specified in the notice; and
9
(b) specify a period within which applications may be made.
10
(2) If the Joint Authority has published a notice under subsection 88(1)
11
inviting applications for the grant of an exploration permit over a
12
block, the block must not be specified in a notice under
13
subsection (1) of this section at any time during the period
14
specified in the subsection 88(1) notice.
15
Note:
Subsection 88(1) deals with cash-bid exploration permits.
16
Application for exploration permit
17
(3) An application under this section must be accompanied by details
18
of:
19
(a) the applicant's proposals for work and expenditure in relation
20
to the block or blocks specified in the application; and
21
(b) the technical qualifications of the applicant and of the
22
applicant's employees; and
23
(c) the technical advice available to the applicant; and
24
(d) the financial resources available to the applicant.
25
Note 1:
Part 2.10 contains additional provisions about application procedures.
26
Note 2:
Section 220 requires the application to be accompanied by an
27
application fee.
28
Note 3:
Section 222 enables the Designated Authority to require the applicant
29
to give further information.
30
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 2 Obtaining a work-bid exploration permit
Section 83
82 Offshore Petroleum Bill 2005 No. , 2005
Maximum number of blocks
1
(4) The number of blocks specified in an application under this section
2
must not be more than 400.
3
Minimum number of blocks
4
(5) If 16 or more blocks are available, the number of blocks specified
5
in an application under this section must not be less than 16.
6
(6) If less than 16 blocks are available, the number of blocks specified
7
in an application under this section must be the number available.
8
(7) Subsections (5) and (6) do not apply to applications if the Joint
9
Authority, for reasons that the Joint Authority thinks sufficient,
10
includes in the subsection (1) notice a direction that subsections (5)
11
and (6) do not apply to those applications.
12
Attributes of blocks
13
(8) The blocks specified in an application under this section must be
14
blocks that are constituted by graticular sections that:
15
(a) constitute a single area; and
16
(b) are such that each graticular section in that area has a side in
17
common with at least one other graticular section in that area.
18
(9) Subsection (8) does not apply to applications if the Joint Authority,
19
for reasons that the Joint Authority thinks sufficient, includes in the
20
subsection (1) notice a direction that subsection (8) does not apply
21
to those applications.
22
83 Grant of work-bid exploration permit--offer document
23
Scope
24
(1) This section applies if an application for the grant of an exploration
25
permit has been made under section 82.
26
Offer document
27
(2) The Joint Authority may:
28
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a work-bid exploration permit Division 2
Section 84
Offshore Petroleum Bill 2005 No. , 2005 83
(a) give the applicant a written notice (called an offer document)
1
telling the applicant that the Joint Authority is prepared to
2
grant the applicant an exploration permit over the block or
3
blocks specified in the offer document; or
4
(b) by written notice given to the applicant, refuse to grant an
5
exploration permit to the applicant.
6
Note 1:
Section 223 sets out additional requirements for offer documents (for
7
example, a requirement that an offer document must contain a
8
summary of conditions).
9
Note 2:
If the applicant breaches a requirement under section 222 to provide
10
further information, the Joint Authority may refuse to give the
11
applicant an offer document--see subsection 222(3).
12
84 Ranking of multiple applicants for work-bid exploration permit
13
Scope
14
(1) This section applies if:
15
(a) the Joint Authority publishes a notice under subsection 82(1)
16
inviting applications for the grant of an exploration permit;
17
and
18
(b) at the end of the period specified in the notice, 2 or more
19
applications have been made under section 82 for the grant of
20
an exploration permit over the same block or blocks.
21
Most deserving applicant may be given offer document
22
(2) The Joint Authority may give an offer document under section 83
23
to whichever applicant, in the Joint Authority's opinion, is most
24
deserving of the grant of the exploration permit.
25
(3) In determining which of the applicants is most deserving of the
26
grant of the exploration permit, the Joint Authority must have
27
regard to criteria made publicly available by the Joint Authority.
28
Ranking of applicants
29
(4) For the purposes of this section, the Joint Authority may rank the
30
applicants in the order in which, in the Joint Authority's opinion,
31
they are deserving of the grant of the exploration permit, with the
32
most deserving applicant being ranked highest.
33
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 2 Obtaining a work-bid exploration permit
Section 84
84 Offshore Petroleum Bill 2005 No. , 2005
(5) The Joint Authority may exclude from the ranking any applicant
1
who, in the Joint Authority's opinion, is not deserving of the grant
2
of the exploration permit.
3
Applicants who are equally deserving of the grant of the
4
exploration permit
5
(6) If the Joint Authority:
6
(a) has considered the information accompanying the
7
applications; and
8
(b) is of the opinion that 2 or more of the applicants are equally
9
deserving of the grant of the exploration permit;
10
the Joint Authority may, by written notice given to each of those
11
applicants, invite them to give the Joint Authority details (the
12
work/expenditure details) of their proposals for additional work
13
and expenditure in relation to the block or blocks concerned.
14
(7) A notice under subsection (6) must:
15
(a) specify the kinds of work/expenditure details that the Joint
16
Authority considers to be relevant in determining which of
17
the applicants is most deserving of the grant of the
18
exploration permit; and
19
(b) specify the period within which the work/expenditure details
20
must be given to the Joint Authority.
21
(8) If an applicant gives work/expenditure details to the Joint
22
Authority, and those details are:
23
(a) of a kind specified in the notice; and
24
(b) given within the period specified in the notice;
25
the Joint Authority must have regard to the details in determining
26
which of the applicants is most deserving of the grant of the
27
exploration permit.
28
Criteria
29
(9) An instrument setting out criteria under subsection (3) is not a
30
legislative instrument for the purposes of the Legislative
31
Instruments Act 2003.
32
Note:
See also section 87, which deals with the effect of the withdrawal or
33
lapse of an application.
34
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a work-bid exploration permit Division 2
Section 85
Offshore Petroleum Bill 2005 No. , 2005 85
85 Grant of work-bid exploration permit
1
If:
2
(a) an applicant has been given an offer document under
3
section 83; and
4
(b) the applicant has made a request under section 224 in relation
5
to the offer document within the period applicable under that
6
section;
7
the Joint Authority must grant the applicant an exploration permit
8
over the block or blocks specified in the offer document.
9
Note:
If the applicant does not make a request under section 224 within the
10
period applicable under that section, the application lapses at the end
11
of that period--see subsection 224(4).
12
86 Withdrawal of application
13
Scope
14
(1) This section applies if the Joint Authority publishes a notice under
15
subsection 82(1) inviting applications for the grant of an
16
exploration permit.
17
Withdrawal by single applicant
18
(2) If a person has made an application, the person may, by written
19
notice given to the Joint Authority, withdraw the application at any
20
time before an exploration permit is granted as a result of the
21
application.
22
Withdrawal by all joint applicants
23
(3) If 2 or more persons have made a joint application, all of those
24
persons may, by written notice given to the Joint Authority,
25
withdraw the application at any time before an exploration permit
26
is granted as a result of the application.
27
Withdrawal by one or more, but not all, joint applicants
28
(4) If:
29
(a) a joint application was made under section 82 for the grant of
30
an exploration permit; and
31
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 2 Obtaining a work-bid exploration permit
Section 87
86 Offshore Petroleum Bill 2005 No. , 2005
(b) all of the joint applicants, by written notice given to the Joint
1
Authority, tell the Joint Authority that one or more, but not
2
all, of them, as specified in the notice, withdraw from the
3
application;
4
then:
5
(c) the application continues in force as if it had been made by
6
the remaining applicant or applicants; and
7
(d) if the Joint Authority had given the joint applicants an offer
8
document in relation to the application--the Joint Authority
9
is taken not to have given the offer document to the joint
10
applicants.
11
87 Effect of withdrawal or lapse of application
12
Scope
13
(1) This section applies if:
14
(a) 2 or more applications have been made under section 82 for
15
the grant of an exploration permit over the same block or
16
blocks; and
17
(b) one or more, but not all, of the applications are withdrawn or
18
have lapsed.
19
Application is taken not to have been made
20
(2) A withdrawn or lapsed application is taken not to have been made.
21
Offer document is taken not to have been given
22
(3) If the Joint Authority gave an offer document in relation to a
23
withdrawn or lapsed application, the Joint Authority is taken not to
24
have given an offer document in relation to the withdrawn or
25
lapsed application.
26
Request to grant exploration permit
27
(4) If the applicant, or one of the applicants, whose application had
28
been withdrawn had requested the Joint Authority under
29
section 224 to grant an exploration permit to the applicant
30
concerned, the request is taken not to have been made.
31
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a work-bid exploration permit Division 2
Section 87
Offshore Petroleum Bill 2005 No. , 2005 87
Refusal to grant exploration permit
1
(5) If the following conditions are satisfied in relation to a remaining
2
applicant:
3
(a) the Joint Authority had refused to grant an exploration permit
4
to the remaining applicant;
5
(b) the Joint Authority did not exclude the remaining applicant
6
from the ranking under subsection 84(5);
7
the refusal is taken not to have occurred.
8
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 3 Obtaining a cash-bid exploration permit
Section 88
88 Offshore Petroleum Bill 2005 No. , 2005
1
Division 3--Obtaining a cash-bid exploration permit
2
88 Application for cash-bid exploration permit
3
Invitation to apply for an exploration permit
4
(1) The Joint Authority may, by notice published in the Gazette:
5
(a) invite applications by way of cash bidding for the grant by
6
the Joint Authority of an exploration permit over the block or
7
blocks specified in the notice; and
8
(b) specify a period within which applications may be made.
9
(2) If the Joint Authority has published a notice under subsection 82(1)
10
inviting applications for the grant of an exploration permit over a
11
block, the block must not be specified in a notice under
12
subsection (1) of this section at any time during the period
13
specified in the subsection 82(1) notice.
14
Note:
Subsection 82(1) deals with work-bid exploration permits.
15
(3) A notice under subsection (1) must:
16
(a) state whether the permit is able to be renewed; and
17
(b) contain a summary of the conditions to which the permit will
18
be subject; and
19
(c) specify the matters that the Joint Authority will take into
20
account in deciding whether to reject an application.
21
(4) If a notice under subsection (1) specifies more than one block,
22
those blocks must be constituted by graticular sections that:
23
(a) constitute a single area; and
24
(b) are such that each graticular section in that area has a side in
25
common with at least one other graticular section in that area.
26
Application for exploration permit
27
(5) If a notice under subsection (1) specifies more than one block, an
28
application under this section must be for an exploration permit
29
over all of the specified blocks.
30
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a cash-bid exploration permit Division 3
Section 89
Offshore Petroleum Bill 2005 No. , 2005 89
(6) An application under this section must:
1
(a) be accompanied by details of:
2
(i) the technical qualifications of the applicant and of the
3
applicant's employees; and
4
(ii) the technical advice available to the applicant; and
5
(iii) the financial resources available to the applicant; and
6
(b) specify the amount that the applicant would be prepared to
7
pay for the grant of the permit.
8
Note 1:
Part 2.10 contains additional provisions about application procedures.
9
Note 2:
Section 220 requires the application to be accompanied by an
10
application fee.
11
Note 3:
Section 222 enables the Designated Authority to require the applicant
12
to give further information.
13
89 Grant of cash-bid exploration permit--only one application
14
Scope
15
(1) This section applies if:
16
(a) the Joint Authority publishes a notice under subsection 88(1)
17
inviting applications for the grant of an exploration permit
18
over a block or blocks; and
19
(b) at the end of the period specified in the notice, only one
20
application has been made under section 88 in relation to the
21
block or blocks.
22
Offer document
23
(2) The Joint Authority may:
24
(a) give the applicant a written notice (called an offer document)
25
telling the applicant that the Joint Authority is prepared to
26
grant the applicant an exploration permit over that block or
27
those blocks; or
28
(b) by written notice given to the applicant, reject the
29
application.
30
Note 1:
Section 223 sets out additional requirements for offer documents (for
31
example, a requirement that an offer document must contain a
32
summary of conditions).
33
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 3 Obtaining a cash-bid exploration permit
Section 90
90 Offshore Petroleum Bill 2005 No. , 2005
Note 2:
If the applicant breaches a requirement under section 222 to provide
1
further information, the Joint Authority may refuse to give the
2
applicant an offer document--see subsection 222(3).
3
90 Grant of cash-bid exploration permit--2 or more applications
4
Scope
5
(1) This section applies if:
6
(a) the Joint Authority publishes a notice under subsection 88(1)
7
inviting applications for the grant of an exploration permit
8
over a block or blocks; and
9
(b) at the end of the period specified in the notice, 2 or more
10
applications have been made under section 88 in relation to
11
the block or blocks.
12
Rejection of applications
13
(2) The Joint Authority may reject any or all of the applications.
14
Unrejected applications
15
(3) If the Joint Authority does not reject all of the applications, the
16
table has effect:
17
18
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 88(6)(b) are
equal
one of those applicants.
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a cash-bid exploration permit Division 3
Section 90
Offshore Petroleum Bill 2005 No. , 2005 91
Unrejected applications
Item
If...
the Joint Authority may give a written
notice (called an offer document) to...
3
(a) 2 or more applications
remain unrejected; and
(b) the amounts specified in
the applications under
paragraph 88(6)(b) are not
equal; and
(c) the amount specified in
one of the applications is
higher than the amount or
amounts specified in the
remaining application or
applications
whichever of those applicants specified the
highest amount.
4
(a) 3 or more applications
remain unrejected; and
(b) 2 or more of the amounts
specified in the
applications under
paragraph 88(6)(b) are:
(i) equal; and
(ii) higher than the
amount or amounts
specified in the
remaining
application or
applications
one of the applicants who specified the
equal highest amount.
(4) An offer document given to an applicant must tell the applicant
1
that the Joint Authority is prepared to grant the applicant an
2
exploration permit over the block or blocks.
3
Note 1:
Section 223 sets out additional requirements for offer documents (for
4
example, a requirement that an offer document must contain a
5
summary of conditions).
6
Note 2:
If an applicant breaches a requirement under section 222 to provide
7
further information, the Joint Authority may refuse to give the
8
applicant an offer document--see subsection 222(3).
9
(5) If:
10
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 3 Obtaining a cash-bid exploration permit
Section 91
92 Offshore Petroleum Bill 2005 No. , 2005
(a) an applicant is given an offer document under this section;
1
and
2
(b) the application lapses as provided by section 224 or 225; and
3
(c) there are one or more remaining unrejected applications;
4
subsections (3) and (4) of this section apply in relation to the
5
remaining unrejected applications.
6
Unsuccessful applications
7
(6) If the Joint Authority does not give an offer document to an
8
applicant, the Joint Authority must, by written notice given to the
9
applicant, inform the applicant that the application was
10
unsuccessful.
11
91 Grant of cash-bid exploration permit
12
(1) If:
13
(a) an applicant has been given an offer document under
14
section 89 or 90; and
15
(b) the applicant has made a request under section 224 in relation
16
to the offer document within the period applicable under that
17
section; and
18
(c) the applicant has paid the specified amount within the period
19
applicable under section 225;
20
the Joint Authority must grant the applicant an exploration permit
21
over the block or blocks specified in the offer document.
22
Note 1:
If the applicant does not make a request under section 224 within the
23
period applicable under that section, the application lapses at the end
24
of that period--see subsection 224(4).
25
Note 2:
If the applicant has not paid the specified amount within the period
26
applicable under section 225, the application lapses at the end of that
27
period--see subsection 225(1).
28
(2) For the purposes of this section, the specified amount is the
29
amount specified in the offer document as the amount that the
30
applicant must pay for the grant of the exploration permit.
31
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a cash-bid exploration permit Division 3
Section 92
Offshore Petroleum Bill 2005 No. , 2005 93
92 Extension of cash-bid exploration permit
1
Scope
2
(1) This section applies if:
3
(a) a cash-bid exploration permit expires; and
4
(b) the permit cannot be renewed.
5
Note:
See section 98 (non-renewable permits) and section 99 (limit on
6
renewal of permits).
7
Extension of permit--requirement to nominate blocks as location
8
(2) If, before the expiry of the permit:
9
(a) the Designated Authority had required the permittee to
10
nominate, under section 108, a block or blocks in relation to
11
which the permit was in force; and
12
(b) the permittee had not complied with the requirement;
13
the permit continues in force over that block or those blocks until
14
the end of the period the permittee has to comply with the
15
requirement.
16
Extension of permit--nomination of blocks as location, declaration
17
of location
18
(3) If, before the expiry of the permit:
19
(a) a block or blocks in relation to which the permit was in force
20
had been nominated under section 107; or
21
(b) both:
22
(i) a declaration under section 109 had been made in
23
relation to a block or blocks in relation to which the
24
permit was in force; and
25
(ii) the permittee had not requested that the declaration be
26
revoked;
27
the permit continues in force over that block or those blocks until
28
whichever of the following events happens first:
29
(c) a declaration under section 109 in relation to the block or
30
blocks is revoked;
31
(d) a retention lease or a production licence is granted in relation
32
to the block or blocks;
33
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 3 Obtaining a cash-bid exploration permit
Section 92
94 Offshore Petroleum Bill 2005 No. , 2005
(e) the application period referred to in section 117 in relation to
1
the block or blocks ends without the permittee making an
2
application under that section for a retention lease in relation
3
to the block or blocks;
4
(f) if the Royalty Act does not apply to the permit--the
5
application period referred to in section 143 in relation to the
6
block or blocks ends without the permittee making an
7
application under section 142 for a production licence over
8
the block or blocks;
9
(g) if the Royalty Act applies to the permit--the application
10
period referred to in clause 3 of Schedule 4 in relation to the
11
block or blocks ends without the permittee making an
12
application under clause 2 of Schedule 4 for a production
13
licence over the block or blocks.
14
(4) This section has effect subject to this Chapter but despite
15
section 80.
16
Note:
See the notes at the end of section 80.
17
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a special exploration permit over a surrendered block or certain other blocks
Division 4
Section 93
Offshore Petroleum Bill 2005 No. , 2005 95
1
Division 4--Obtaining a special exploration permit over a
2
surrendered block or certain other blocks
3
93 Application for a special exploration permit over a surrendered
4
block or certain other blocks
5
Invitation to apply for an exploration permit
6
(1) If:
7
(a) a retention lease is surrendered, cancelled or revoked to the
8
extent to which it relates to a block or blocks; or
9
(b) a production licence is surrendered or cancelled to the extent
10
to which it relates to a block or blocks; or
11
(c) a production licence that relates to a block or blocks is
12
terminated; or
13
(d) both:
14
(i) an exploration permit is surrendered, cancelled or
15
revoked to the extent to which it relates to a block or
16
blocks; and
17
(ii) at the time of the surrender, cancellation or revocation,
18
the block or blocks were, or were included in, a
19
location;
20
the Joint Authority may, at any later time, by notice published in
21
the Gazette:
22
(e) invite applications for the grant by the Joint Authority of an
23
exploration permit over that block or such of those blocks as
24
are specified in the notice; and
25
(f) specify a period within which applications may be made.
26
(2) A notice under subsection (1) must state that an applicant must
27
specify an amount that the applicant would be prepared to pay for
28
the grant of the permit.
29
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 4 Obtaining a special exploration permit over a surrendered block or certain
other blocks
Section 93
96 Offshore Petroleum Bill 2005 No. , 2005
Application for exploration permit
1
(3) If a notice under subsection (1) specifies more than one block, an
2
application under this section must be for an exploration permit
3
over all of the specified blocks.
4
(4) An application under this section must:
5
(a) be accompanied by details of:
6
(i) the applicant's proposals for work and expenditure in
7
relation to the block or blocks specified in the
8
application; and
9
(ii) the technical qualifications of the applicant and of the
10
applicant's employees; and
11
(iii) the technical advice available to the applicant; and
12
(iv) the financial resources available to the applicant; and
13
(b) specify the amount that the applicant would be prepared to
14
pay for the grant of the permit.
15
Note 1:
Part 2.10 contains additional provisions about application procedures.
16
Note 2:
Section 220 requires the application to be accompanied by an
17
application fee.
18
Note 3:
Section 222 enables the Designated Authority to require the applicant
19
to give further information.
20
(5) An application under this section must be accompanied by a
21
deposit of 10% of the amount that the applicant has specified under
22
paragraph (4)(b).
23
Refund of deposit
24
(6) If the permit is not granted, the deposit must be refunded to the
25
applicant.
26
(7) Subsection (6) does not apply if:
27
(a) the applicant has been given an offer document under
28
section 94 or 95 in relation to the application; and
29
(b) the applicant does not, under section 224, request the grant of
30
the permit.
31
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a special exploration permit over a surrendered block or certain other blocks
Division 4
Section 94
Offshore Petroleum Bill 2005 No. , 2005 97
94 Grant of special exploration permit--only one application
1
Scope
2
(1) This section applies if:
3
(a) the Joint Authority publishes a notice under subsection 93(1)
4
inviting applications for the grant of an exploration permit
5
over a block or blocks; and
6
(b) at the end of the period specified in the notice, only one
7
application has been made under section 93 in relation to the
8
block or blocks.
9
Offer document
10
(2) The Joint Authority may:
11
(a) give the applicant a written notice (called an offer document)
12
telling the applicant that the Joint Authority is prepared to
13
grant the applicant an exploration permit over that block or
14
those blocks; or
15
(b) by written notice given to the applicant, reject the
16
application.
17
Note 1:
Section 223 sets out additional requirements for offer documents (for
18
example, a requirement that an offer document must contain a
19
summary of conditions).
20
Note 2:
If the applicant breaches a requirement under section 222 to provide
21
further information, the Joint Authority may refuse to give the
22
applicant an offer document--see subsection 222(3).
23
95 Grant of special exploration permit--2 or more applications
24
Scope
25
(1) This section applies if:
26
(a) the Joint Authority publishes a notice under subsection 93(1)
27
inviting applications for the grant of an exploration permit
28
over a block or blocks; and
29
(b) at the end of the period specified in the notice, 2 or more
30
applications have been made under section 93 in relation to
31
the block or blocks.
32
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 4 Obtaining a special exploration permit over a surrendered block or certain
other blocks
Section 95
98 Offshore Petroleum Bill 2005 No. , 2005
Rejection of applications
1
(2) The Joint Authority may reject any or all of the applications.
2
Unrejected applications
3
(3) If the Joint Authority does not reject all of the applications, the
4
table has effect:
5
6
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 93(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 93(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.
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Obtaining a special exploration permit over a surrendered block or certain other blocks
Division 4
Section 95
Offshore Petroleum Bill 2005 No. , 2005 99
Unrejected applications
Item
If...
the Joint Authority may give a written
notice (called an offer document) to...
4
(a) 3 or more applications
remain unrejected; and
(b) 2 or more of the amounts
specified in the
applications under
paragraph 93(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
1
that the Joint Authority is prepared to grant the applicant an
2
exploration permit over the block or blocks.
3
Note 1:
Section 223 sets out additional requirements for offer documents (for
4
example, a requirement that an offer document must contain a
5
summary of conditions).
6
Note 2:
If an applicant breaches a requirement under section 222 to provide
7
further information, the Joint Authority may refuse to give the
8
applicant an offer document--see subsection 222(3).
9
(5) If:
10
(a) an applicant is given an offer document under this section;
11
and
12
(b) the application lapses as provided by section 224 or 225; and
13
(c) there are one or more remaining unrejected applications;
14
subsections (3) and (4) of this section apply in relation to the
15
remaining unrejected applications.
16
Unsuccessful applications
17
(6) If the Joint Authority does not give an offer document to an
18
applicant, the Joint Authority must, by written notice given to the
19
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 4 Obtaining a special exploration permit over a surrendered block or certain
other blocks
Section 96
100 Offshore Petroleum Bill 2005 No. , 2005
applicant, inform the applicant that the application was
1
unsuccessful.
2
96 Grant of special exploration permit
3
(1) If:
4
(a) an applicant has been given an offer document under
5
section 94 or 95; and
6
(b) the applicant has made a request under section 224 in relation
7
to the offer document within the period applicable under that
8
section; and
9
(c) the applicant has paid the specified balance within the period
10
applicable under section 225;
11
the Joint Authority must grant the applicant an exploration permit
12
over the block or blocks specified in the offer document.
13
Note 1:
If the applicant does not make a request under section 224 within the
14
period applicable under that section, the application lapses at the end
15
of that period--see subsection 224(4).
16
Note 2:
If the applicant has not paid the specified balance within the period
17
applicable under section 225, the application lapses at the end of that
18
period--see subsection 225(2).
19
(2) For the purposes of this section, the specified balance is the
20
balance specified in the offer document as the balance of the
21
amount that the applicant must pay for the grant of the exploration
22
permit.
23
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Renewal of exploration permits Division 5
Section 97
Offshore Petroleum Bill 2005 No. , 2005 101
1
Division 5--Renewal of exploration permits
2
97 Application for renewal of exploration permit
3
(1) An exploration permittee may apply to the Designated Authority
4
for the renewal by the Joint Authority of the permit in relation to
5
such of the blocks the subject of the permit as are specified in the
6
application.
7
Note 1:
Part 2.10 contains additional provisions about application procedures.
8
Note 2:
Section 220 requires the application to be accompanied by an
9
application fee.
10
(2) Subsection (1) has effect subject to the following provisions:
11
(a) section 98 (non-renewable cash-bid exploration permits);
12
(b) section 99 (limit on renewal of cash-bid exploration permits);
13
(c) section 100 (limits on renewal of work-bid exploration
14
permits and special exploration permits);
15
(d) section 101 (standard halving rules);
16
(e) section 102 (modified halving rules).
17
(3) An application to renew an exploration permit must be made at
18
least 90 days before the expiry date of the permit.
19
(4) Despite subsection (3), the Designated Authority may accept an
20
application to renew an exploration permit if the application is
21
made:
22
(a) later than 90 days before the expiry date of the permit; and
23
(b) before the expiry date of the permit.
24
Extension of duration of exploration permit pending decision on
25
application
26
(5) If:
27
(a) an exploration permittee makes an application to renew the
28
permit; and
29
(b) the permit would, apart from this subsection, expire:
30
(i) before the Joint Authority grants, or refuses to grant, the
31
renewal of the permit; or
32
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 5 Renewal of exploration permits
Section 98
102 Offshore Petroleum Bill 2005 No. , 2005
(ii) before the application lapses as provided by section 224;
1
the permit continues in force:
2
(c) until the Joint Authority grants, or refuses to grant, the
3
renewal of the permit; or
4
(d) until the application so lapses;
5
whichever happens first.
6
(6) Subsection (5) has effect subject to this Chapter but despite
7
section 80.
8
Note:
See the notes at the end of section 80.
9
98 Non-renewable cash-bid exploration permits
10
An exploration permittee must not apply to renew a cash-bid
11
exploration permit if the notice under subsection 88(1) relating to
12
the grant of the permit stated that the permit was not able to be
13
renewed.
14
99 Limit on renewal of cash-bid exploration permits
15
An exploration permittee must not apply to renew a cash-bid
16
exploration permit if the Joint Authority has previously granted a
17
renewal of the permit.
18
100 Limits on renewal of work-bid exploration permits and special
19
exploration permits
20
Scope
21
(1) This section applies to an application for renewal of a work-bid
22
exploration permit or a special exploration permit.
23
Limits
24
(2) The table has effect:
25
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Renewal of exploration permits Division 5
Section 100
Offshore Petroleum Bill 2005 No. , 2005 103
1
Limits on renewal
Item
In this case...
Do the
standard
halving
rules in
section 10
1 apply?
Do the
modified
halving
rules in
section 10
2 apply?
Can the
permit be
renewed
more than
twice?
1
an application for renewal of a
work-bid exploration permit,
where the original 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 82(1) on or after
1 January 2003
Yes
No
No
2
an application for renewal of a
special exploration permit,
where the original exploration
permit was granted on or after
1 January 2003
Yes
No
No
3
the first application after
6 March 2000 to renew an
exploration permit, where the
original 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 an 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
2
the table to subsection 82(1) of this Act includes a reference to
3
subsection 20(1) of the Petroleum (Submerged Lands) Act 1967.
4
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 5 Renewal of exploration permits
Section 101
104 Offshore Petroleum Bill 2005 No. , 2005
101 Standard halving rules
1
(1) This section sets out the standard halving rules.
2
Scope
3
(2) This section applies to:
4
(a) an application for renewal of a cash-bid exploration permit
5
that is capable of being renewed; and
6
(b) an application for renewal that is covered by item 1, 2 or 4 of
7
the table in subsection 100(2).
8
Basic rule
9
(3) The maximum number of blocks in relation to which an application
10
for a renewal of a permit may be made is worked out using the
11
table:
12
13
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
14
(9).
15
Additional rules
16
(5) An application to renew a permit may include, in addition to the
17
blocks worked out under subsection (3):
18
(a) a block that is, or is included in, a location and in relation to
19
which the permit is in force; or
20
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Renewal of exploration permits Division 5
Section 102
Offshore Petroleum Bill 2005 No. , 2005 105
(b) 2 or more blocks covered by paragraph (a).
1
(6) An application cannot be made to renew a permit in relation to
2
only one block.
3
(7) If a permit is in force in relation to 5 or 6 blocks, an application
4
may be made to renew the permit in relation to 4 of those blocks.
5
(8) If a permit is in force in relation to 2, 3 or 4 blocks, an application
6
may be made to renew the permit in relation to all those blocks.
7
(9) If a permit is renewed as a result of an application referred to in
8
subsection (8), an application may not be made for the further
9
renewal of the permit.
10
Definition
11
(10) In this section:
12
non-location block means a block that is neither a location nor
13
included in a location.
14
102 Modified halving rules
15
(1) This section sets out the modified halving rules.
16
Scope
17
(2) This section applies to an application for renewal that is covered by
18
item 3 of the table in subsection 100(2).
19
Modification of standard halving rules
20
(3) The modified halving rules are the rules set out in subsections
21
101(3), (4), (5), (7), (8), (9) and (10), modified as follows:
22
(a) if the maximum number of blocks in relation to which an
23
application for renewal of a permit may be made in
24
accordance with those rules is less than 16, the Joint
25
Authority may, by written notice given to the permittee:
26
(i) tell the permittee that the number of blocks in relation to
27
which the application may be made is such number, not
28
more than 16, as is specified in the notice; and
29
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 5 Renewal of exploration permits
Section 103
106 Offshore Petroleum Bill 2005 No. , 2005
(ii) give such directions as the Joint Authority thinks fit
1
about the blocks in relation to which the application
2
may be made;
3
(b) if a permit is in force in relation to only one block, an
4
application may be made for renewal of the permit in relation
5
to that block.
6
103 Renewal of exploration permit--offer document
7
Scope
8
(1) This section applies if an application to renew an exploration
9
permit has been made under section 97.
10
Offer document--compliance with conditions etc.
11
(2) If each of the following has been complied with:
12
(a) the conditions to which the exploration permit is, or has from
13
time to time been, subject;
14
(b) the provisions of this Chapter, Chapter 3, Chapter 4 and
15
Part 5.1;
16
(c) the regulations;
17
the Joint Authority must give the applicant a written notice (called
18
an offer document) telling the applicant that the Joint Authority is
19
prepared to renew the permit.
20
Note:
Section 223 sets out additional requirements for offer documents (for
21
example, a requirement that an offer document must contain a
22
summary of conditions).
23
Offer document--non-compliance with conditions etc.
24
(3) If:
25
(a) any of:
26
(i) the conditions to which the exploration permit is, or has
27
from time to time been, subject; or
28
(ii) the provisions of this Chapter, Chapter 3, Chapter 4 and
29
Part 5.1; or
30
(iii) the provisions of the regulations;
31
have not been complied with; and
32
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Renewal of exploration permits Division 5
Section 104
Offshore Petroleum Bill 2005 No. , 2005 107
(b) the Joint Authority is satisfied that there are sufficient
1
grounds to warrant the granting of the renewal of the permit;
2
the Joint Authority may give the applicant a written notice (called
3
an offer document) telling the applicant that the Joint Authority is
4
prepared to renew the permit.
5
Note:
Section 223 sets out additional requirements for offer documents (for
6
example, a requirement that an offer document must contain a
7
summary of conditions).
8
104 Refusal to renew exploration permit
9
Scope
10
(1) This section applies if an application to renew an exploration
11
permit has been made under section 97.
12
Refusal on grounds of non-compliance with conditions
13
(2) If:
14
(a) any of:
15
(i) the conditions to which the exploration permit is, or has
16
from time to time been, subject; or
17
(ii) the provisions of this Chapter, Chapter 3, Chapter 4 and
18
Part 5.1; or
19
(iii) the provisions of the regulations;
20
have not been complied with; and
21
(b) the Joint Authority is not satisfied that there are sufficient
22
grounds to warrant the granting of the renewal of the permit;
23
the Joint Authority must, by written notice given to the applicant,
24
refuse to renew the permit.
25
Note:
Consultation procedures apply--see section 226.
26
105 Renewal of exploration permit
27
If:
28
(a) an applicant has been given an offer document under
29
section 103; and
30
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 5 Renewal of exploration permits
Section 105
108 Offshore Petroleum Bill 2005 No. , 2005
(b) the applicant has made a request under section 224 in relation
1
to the offer document within the period applicable under that
2
section;
3
the Joint Authority must renew the exploration permit.
4
Note:
If the applicant does not make a request under section 224 within the
5
period applicable under that section, the application lapses at the end
6
of that period--see subsection 224(4).
7
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Locations Division 6
Section 106
Offshore Petroleum Bill 2005 No. , 2005 109
1
Division 6--Locations
2
106 Simplified outline
3
The following is a simplified outline of this Division:
4
·
If a petroleum pool is identified in an exploration permit area,
5
the Designated Authority may declare a location over the
6
blocks to which the petroleum pool extends.
7
·
Generally, the blocks must be nominated for declaration by
8
the permittee.
9
·
The Designated Authority may require the permittee to
10
nominate the blocks.
11
·
The declaration may be revoked or varied in certain
12
circumstances.
13
107 Nomination of blocks as a location
14
Single petroleum pool
15
(1) If:
16
(a) a petroleum pool is identified in an exploration permit area;
17
and
18
(b) the permittee or another person has, whether in or outside the
19
permit area, recovered petroleum from the pool;
20
the permittee may nominate, for declaration as a location:
21
(c) if the pool extends to only one block in the permit area--that
22
block; or
23
(d) if the pool extends to 2 or more blocks in the permit area--
24
those blocks.
25
2 or more petroleum pools
26
(2) If:
27
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 6 Locations
Section 108
110 Offshore Petroleum Bill 2005 No. , 2005
(a) 2 or more petroleum pools are identified in an exploration
1
permit area; and
2
(b) the permittee or another person has, whether in or outside the
3
permit area, recovered petroleum from each of those pools;
4
the permittee may, instead of making a nomination under
5
subsection (1) in relation to each pool, nominate for declaration as
6
a single location:
7
(c) all of the blocks to which the pools extend; or
8
(d) all of the blocks to which any 2 or more of the pools extend.
9
(3) To be effective, a nomination under subsection (2) that relates to 2
10
or more pools must be such that, in the case of each of the pools, at
11
least one of the blocks to which the pool extends immediately
12
adjoins a block to which the other, or another, of those pools
13
extends.
14
(4) For the purposes of subsection (3), a block immediately adjoins
15
another block if the graticular section that constitutes or includes
16
that block and the graticular section that constitutes or includes that
17
other block:
18
(a) have a side in common; or
19
(b) are joined together at one point only.
20
Form of nomination
21
(5) A nomination under this section must be:
22
(a) in writing; and
23
(b) given to the Designated Authority.
24
108 Requirement to nominate blocks as a location
25
Requirement to nominate
26
(1) If:
27
(a) the Designated Authority is of the opinion that an exploration
28
permittee is entitled to nominate a block or blocks under
29
subsection 107(1) or (2); and
30
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Locations Division 6
Section 109
Offshore Petroleum Bill 2005 No. , 2005 111
(b) the permittee has not done so;
1
the Designated Authority may, by written notice given to the
2
permittee, require the permittee to nominate the block or blocks
3
within:
4
(c) 90 days after the day on which the notice was given; or
5
(d) such longer period, not more than 180 days after the day on
6
which the notice was given, as the Designated Authority
7
allows.
8
(2) The Designated Authority may allow a longer period under
9
paragraph (1)(d) only on written application made by the permittee
10
within the period of 90 days mentioned in paragraph (1)(c).
11
Consequences of non-compliance
12
(3) If the permittee does not comply with the requirement, the
13
Designated Authority may, by written notice given to the
14
permittee, nominate the block or blocks for declaration as a
15
location.
16
109 Declaration of location
17
Nomination by permittee
18
(1) If:
19
(a) an exploration permittee has made a nomination under
20
section 107; and
21
(b) the Designated Authority is of the opinion that the permittee
22
is entitled under that section to nominate the block or blocks
23
specified in the nomination;
24
the Designated Authority must, by writing, declare the nominated
25
block or blocks to be a location.
26
(2) A copy of a declaration under subsection (1) must be published in
27
the Gazette.
28
(3) The Designated Authority may form an opinion for the purposes of
29
this section if the Designated Authority considers that there are
30
reasonable grounds for doing so having regard to any information
31
Chapter 2 Regulation of activities relating to petroleum
Part 2.2 Exploration permits
Division 6 Locations
Section 110
112 Offshore Petroleum Bill 2005 No. , 2005
the Designated Authority has, whether given by the permittee or
1
otherwise.
2
Nomination by Designated Authority
3
(4) If the Designated Authority has made a nomination under
4
section 108, the Designated Authority must, by notice published in
5
the Gazette, declare the nominated block or blocks to be a location.
6
110 Revocation of declaration
7
Revocation at the request of an exploration permittee
8
(1) If:
9
(a) an exploration permit is in force over a block that constitutes,
10
or the blocks that constitute, a location; and
11
(b) the permittee requests the Designated Authority to revoke the
12
declaration of the location;
13
the Designated Authority may, by writing, revoke the declaration
14
of the location.
15
(2) A copy of a revocation under subsection (1) is to be published in
16
the Gazette.
17
Revocation where block is no longer the subject of an exploration
18
permit or a retention lease
19
(3) If:
20
(a) a block or blocks constituting or forming part of a location
21
was or were the subject of an exploration permit or a
22
retention lease; and
23
(b) that block is, or those blocks are, no longer the subject of the
24
permit or lease;
25
the Designated Authority must, by notice published in the Gazette:
26
(c) in a case where that block constitutes, or those blocks
27
constitute, that location--revoke the declaration of that
28
location; or
29
(d) in a case where that block forms, or those blocks form, part
30
of that location--revoke the declaration of that location to
31
Regulation of activities relating to petroleum Chapter 2
Exploration permits Part 2.2
Locations Division 6
Section 110
Offshore Petroleum Bill 2005 No. , 2005 113
the extent to which the declaration relates to that block or
1
those blocks.
2
(4) Subsection (3) does not apply in relation to a block if:
3
(a) a person has applied for the grant of a production licence
4
over the block, and the Joint Authority has not made a
5
decision in relation to the application; or
6
(b) a production licence is in force in relation to the block.
7
(5) Subsection (3) does not apply in relation to a block if:
8
(a) a person has applied for the grant of a retention lease over the
9
block, and the Joint Authority has not made a decision in
10
relation to the application; or
11
(b) a retention lease is in force in relation to the block.
12
Revocation if retention lease is granted
13
(6) If a retention lease is granted in relation to a block or blocks
14
forming part of a location, the Designated Authority must, by
15
notice published in the Gazette, revoke the declaration of the
16
location to the extent to which the declaration relates to the block
17
that is, or the blocks that are, not within the retention lease area.
18
Revocation if retention lease refused
19
(7) If:
20
(a) the Joint Authority refuses to grant a retention lease in
21
relation to a block or blocks constituting or forming part of a
22
location; and
23
(b) the reason, or one of the reasons, for the refusal is that the
24
Joint Authority is not satisfied as to the matter referred to in
25
subparagraph 118(b)(ii) (which deals with commercial
26
viability);
27
the Designated Authority must, by notice published in the Gazette,
28
revoke the declaration of that location.
29
Note:
If an exploration permit is in force over a block that constitutes a
30
location, the permittee's application for a retention lease over the
31
block is rejected as mentioned in subsection (7), and the permittee
32
wants to apply for a production licence, then the permittee must
33
re-nominate the block for declaration as a location before the
34