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OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE ACT 2006 - SECT 383

Powers of responsible Commonwealth Minister to protect petroleum discovered in the title area of a pre - commencement petroleum title

Elimination of risk

  (1)   If:

  (a)   the licence area of a greenhouse gas injection licence overlaps, in whole or in part:

  (i)   the permit area of a pre - commencement petroleum exploration permit held by a person other than the registered holder of the greenhouse gas injection licence; or

  (ii)   the lease area of a pre - commencement petroleum retention lease held by a person other than the registered holder of the greenhouse gas injection licence; or

  (iii)   the licence area of a pre - commencement petroleum production licence held by a person other than the registered holder of the greenhouse gas injection licence; or

  (iv)   the area covered by a pre - commencement State/Territory petroleum exploration title held by a person other than the registered holder of the greenhouse gas injection licence; or

  (v)   the area covered by a pre - commencement State/Territory petroleum retention title held by a person other than the registered holder of the greenhouse gas injection licence; or

  (vi)   the area covered by a pre - commencement State/Territory petroleum production title held by a person other than the registered holder of the greenhouse gas injection licence; and

  (b)   petroleum is discovered in the area of overlap; and

  (c)   the responsible Commonwealth Minister is satisfied that:

  (i)   the recovery of the petroleum is commercially viable; or

  (ii)   the recovery of the petroleum is not commercially viable, but is likely to become commercially viable at some time in the future; and

  (d)   the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

  (i)   operations to recover the petroleum; or

  (ii)   the commercial viability of the recovery of the petroleum; and

  (e)   if subparagraph   (a)(i), (ii) or (iii) applies--the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

  (ea)   if subparagraph   (a)(iv), (v) or (vi) applies--the holder of the State/Territory petroleum exploration title, State/Territory petroleum retention title or State/Territory petroleum production title, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

  (f)   the responsible Commonwealth Minister is satisfied that it is practicable to eliminate the risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

  (i)   operations to recover the petroleum; or

  (ii)   the commercial viability of the recovery of the petroleum;

the responsible Commonwealth Minister must, by written notice given to the registered holder of the greenhouse gas injection licence:

  (g)   give the registered holder of the greenhouse gas injection licence a direction for the purpose of eliminating the risk that operations that are being, or could be, carried on under the greenhouse gas injection licence could have a significant adverse impact on:

  (i)   operations to recover the petroleum; or

  (ii)   the commercial viability of the recovery of the petroleum; or

  (h)   suspend, either:

  (i)   for a specified period; or

  (ii)   indefinitely;

    any or all of the rights conferred by the greenhouse gas injection licence; or

  (i)   cancel the greenhouse gas injection licence.

  (2)   A direction under paragraph   (1)(g) may require the licensee to do something:

  (a)   in the licence area; or

  (b)   in an offshore area but outside the licence area.

Mitigation, management or remediation of risk

  (3)   If:

  (a)   the licence area of a greenhouse gas injection licence overlaps, in whole or in part:

  (i)   the permit area of a pre - commencement petroleum exploration permit held by a person other than the registered holder of the greenhouse gas injection licence; or

  (ii)   the lease area of a pre - commencement petroleum retention lease held by a person other than the registered holder of the greenhouse gas injection licence; or

  (iii)   the licence area of a pre - commencement petroleum production licence held by a person other than the registered holder of the greenhouse gas injection licence; or

  (iv)   the area covered by a pre - commencement State/Territory petroleum exploration title held by a person other than the registered holder of the greenhouse gas injection licence; or

  (v)   the area covered by a pre - commencement State/Territory petroleum retention title held by a person other than the registered holder of the greenhouse gas injection licence; or

  (vi)   the area covered by a pre - commencement State/Territory petroleum production title held by a person other than the registered holder of the greenhouse gas injection licence; and

  (b)   petroleum is discovered in the area of overlap; and

  (c)   the responsible Commonwealth Minister is satisfied that:

  (i)   the recovery of the petroleum is commercially viable; or

  (ii)   the recovery of the petroleum is not commercially viable, but is likely to become commercially viable at some time in the future; and

  (d)   the responsible Commonwealth Minister is satisfied that there is a significant risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

  (i)   operations to recover the petroleum; or

  (ii)   the commercial viability of the recovery of the petroleum; and

  (e)   if subparagraph   (a)(i), (ii) or (iii) applies--the registered holder of the petroleum exploration permit, petroleum retention lease or petroleum production licence, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

  (ea)   if subparagraph   (a)(iv), (v) or (vi) applies--the holder of the State/Territory petroleum exploration title, State/Territory petroleum retention title or State/Territory petroleum production title, as the case may be, has not agreed, in writing, to the registered holder of the greenhouse gas injection licence carrying on those operations; and

  (f)   the responsible Commonwealth Minister is satisfied that it is not practicable to eliminate the risk that any of the operations that are being, or could be, carried on under the greenhouse gas injection licence will have a significant adverse impact on:

  (i)   operations to recover the petroleum; or

  (ii)   the commercial viability of the recovery of the petroleum;

the responsible Commonwealth Minister must, by written notice given to the registered holder of the greenhouse gas injection licence:

  (g)   give the registered holder of the greenhouse gas injection licence a direction for the purpose of mitigating, managing or remediating the risk that operations that are being, or could be, carried on under the greenhouse gas injection licence could have a significant adverse impact on:

  (i)   operations to recover the petroleum; or

  (ii)   the commercial viability of the recovery of the petroleum; or

  (h)   suspend, either:

  (i)   for a specified period; or

  (ii)   indefinitely;

    any or all of the rights conferred by the greenhouse gas injection licence; or

  (i)   cancel the greenhouse gas injection licence.

  (4)   A direction under paragraph   (3)(g) may require the licensee to take action:

  (a)   in the licence area; or

  (b)   in an offshore area but outside the licence area.

Other provisions

  (5)   A direction under this section has effect, and must be complied with, despite:

  (a)   any previous direction under this section; and

  (b)   anything in the regulations or the applied provisions.

  (6)   A direction under this section prevails over:

  (a)   anything in an approved site plan for an identified greenhouse gas storage formation specified in the greenhouse gas injection licence; or

  (b)   anything specified in the greenhouse gas injection licence as mentioned in any of paragraphs 358(3)(c) to (k) or 358A(3)(c) to (k);

to the extent of any inconsistency.

  (7)   A direction under this section may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) a code of practice or standard contained in an instrument as in force or existing at the time when the direction takes effect, so long as the code of practice or standard is relevant to that matter.

  (8)   To avoid doubt, subsection   (7) applies to an instrument, whether issued or made in Australia or outside Australia.

  (9)   A direction under this section may prohibit the doing of an act or thing:

  (a)   unconditionally; or

  (b)   subject to conditions, including conditions requiring the consent or approval of a person specified in the direction.

  (10)   A direction under this section is not a legislative instrument.

  (11)   If:

  (a)   a direction under this section is in force in relation to a greenhouse gas injection licence; and

  (b)   apart from subsection   (6), the direction would be inconsistent with a matter specified in the licence as mentioned in any of paragraphs 358(3)(c) to (k) or 358A(3)(c) to (k);

the responsible Commonwealth Minister may, by written notice given to the licensee, vary the matter for the purposes of removing that inconsistency.

  (12)   A variation of a matter under subsection   (11) takes effect on the day on which notice of the variation is published in the Gazette .

Note:   For publication in the Gazette of notice of the variation, see section   734.

  (13)   The regulations may provide that, if:

  (a)   a direction under this section is in force in relation to a greenhouse gas injection licence; and

  (b)   apart from subsection   (6), the direction would be inconsistent with anything in an approved site plan for an identified greenhouse gas storage formation specified in the licence;

then:

  (c)   the licensee must, within the period ascertained in accordance with the regulations:

  (i)   prepare a draft variation of the approved site plan for the purposes of removing that inconsistency; and

  (ii)   give the draft variation to the responsible Commonwealth Minister; and

  (d)   the responsible Commonwealth Minister must, by written notice given to the licensee:

  (i)   approve the variation; or

  (ii)   refuse to approve the variation; and

  (e)   if the responsible Commonwealth Minister approves the variation--the approved site plan is varied accordingly.

  (14)   If an approved site plan is varied, a reference in this Act to the approved site plan is a reference to the approved site plan as varied.


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