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OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE ACT 2006 - SECT 190

Directions about the rate of recovery of petroleum

Initial direction

  (1)   If petroleum is being recovered in a petroleum production licence area, the Joint Authority may, by written notice given to the licensee, direct the licensee to take all necessary and practicable steps to increase or reduce the rate at which petroleum is being recovered:

  (a)   in the licence area; or

  (b)   from a petroleum pool in the licence area;

to the rate specified in the notice.

Further direction

  (2)   If:

  (a)   a direction is in force under subsection   (1) in relation to a licensee; and

  (b)   the Joint Authority is not satisfied with the steps taken or being taken by the licensee;

the Joint Authority may, by written notice given to the licensee, give the licensee such directions as the Joint Authority thinks necessary and practicable for, or in relation to, the increase or reduction of the rate at which petroleum is being recovered:

  (c)   in the licence area; or

  (d)   from a petroleum pool in the licence area.

Matters to be taken into account

  (3)   In deciding whether to give a direction under this section, the Joint Authority may take into account matters relating to the effects on Commonwealth revenue of the proposed direction.

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

Good oilfield practice

  (5)   The Joint Authority must not give a direction under this section if the direction would require action to be taken that is contrary to good oilfield practice.


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