OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE ACT 2006

Commonwealth Consolidated Acts

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OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE ACT 2006 - SECT 569

Work practices

(1) The table has effect:

Work practices
Item
This person...
must...
1
the registered holder of a petroleum exploration permit, petroleum retention lease or petroleum production licence
(a) carry out all petroleum exploration operations in the permit area, lease area or licence area in a proper and workmanlike manner and in accordance with good oilfield practice; and
(b) carry out all petroleum recovery operations in the permit area, lease area or licence area in a proper and workmanlike manner and in accordance with good oilfield practice; and
(c) control the flow, and prevent the waste or escape, in the permit area, lease area or licence area, of petroleum or water; and
(d) prevent the escape, in the permit area, lease area or licence area, of any mixture of water or drilling fluid with petroleum or any other matter; and
(e) prevent damage to petroleum - bearing strata in an area (whether in the offshore area or not) in relation to which the permit, lease or licence is not in force; and
(f) keep separate each petroleum pool discovered in the permit area, lease area or licence area; and
(g) keep separate such of the sources of water (if any) discovered in the permit area, lease area or licence area as the Titles Administrator, by written notice given to the registered holder, directs; and
(h) prevent water or any other matter entering any petroleum pool through wells in the permit area, lease area or licence area except when required by, and in accordance with, good oilfield practice.
2
the registered holder of an infrastructure licence
(a) carry out operations authorised by the licence in a safe manner and in accordance with good oilfield practice and good processing and transport practice; and
(b) control the flow, and prevent the waste or escape, from an infrastructure facility constructed under the licence, of water, petroleum or any product derived by processing petroleum.
3
the registered holder of a pipeline licence
(a) operate the pipeline in a proper and workmanlike manner; and
(b) prevent the waste or escape of petroleum or water from the pipeline or from any secondary line, pumping station, tank station, valve station or water line.
4
the registered holder of a petroleum special prospecting authority or petroleum access authority
carry out all petroleum exploration operations in the authority area in a proper and workmanlike manner and in accordance with good oilfield practice.

Work practices
1	the registered holder of a petroleum exploration permit, petroleum retention lease or petroleum production licence	(a) carry out all petroleum exploration operations in the permit area, lease area or licence area in a proper and workmanlike manner and in accordance with good oilfield practice; and (b) carry out all petroleum recovery operations in the permit area, lease area or licence area in a proper and workmanlike manner and in accordance with good oilfield practice; and (c) control the flow, and prevent the waste or escape, in the permit area, lease area or licence area, of petroleum or water; and (d) prevent the escape, in the permit area, lease area or licence area, of any mixture of water or drilling fluid with petroleum or any other matter; and (e) prevent damage to petroleum - bearing strata in an area (whether in the offshore area or not) in relation to which the permit, lease or licence is not in force; and (f) keep separate each petroleum pool discovered in the permit area, lease area or licence area; and (g) keep separate such of the sources of water (if any) discovered in the permit area, lease area or licence area as the Titles Administrator, by written notice given to the registered holder, directs; and (h) prevent water or any other matter entering any petroleum pool through wells in the permit area, lease area or licence area except when required by, and in accordance with, good oilfield practice.
2	the registered holder of an infrastructure licence	(a) carry out operations authorised by the licence in a safe manner and in accordance with good oilfield practice and good processing and transport practice; and (b) control the flow, and prevent the waste or escape, from an infrastructure facility constructed under the licence, of water, petroleum or any product derived by processing petroleum.
3	the registered holder of a pipeline licence	(a) operate the pipeline in a proper and workmanlike manner; and (b) prevent the waste or escape of petroleum or water from the pipeline or from any secondary line, pumping station, tank station, valve station or water line.
4	the registered holder of a petroleum special prospecting authority or petroleum access authority	carry out all petroleum exploration operations in the authority area in a proper and workmanlike manner and in accordance with good oilfield practice.

(2) Paragraphs (c) to (h) of item 1, and paragraph (b) of item 2, of the table in subsection (1) have effect subject to any authorisation given, or requirement made, by or under:

(a) this Act; or

(b) the regulations; or

(3) Paragraphs (b) to (h) of item 1 of the table in subsection (1) do not limit paragraph (a) of that item.

(4) Paragraph (b) of item 2 of the table in subsection (1) does not limit paragraph (a) of that item.

(5) Paragraph (b) of item 3 of the table in subsection (1) does not limit paragraph (a) of that item.

Offence

(6) A person commits an offence if:

(a) the person is subject to a requirement under subsection (1); and

(b) the person engages in conduct; and

Penalty: 100 penalty units.

(6A) An offence against subsection (6) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code .

Civil penalty

(6B) A person is liable to a civil penalty if the person contravenes a requirement under subsection (1).

Civil penalty: 1,000 penalty units.

Defence

(7) In:

(a) a prosecution for an offence against subsection (6) in relation to a breach of a paragraph of an item of the table in subsection (1); or

(aa) proceedings for a civil penalty order for the purposes of subsection (6B) in relation to a breach of a paragraph of an item of the table in subsection (1); or

(b) an action arising out of a breach of a paragraph of an item of the table in subsection (1);

it is a defence if the defendant proves that the defendant took all reasonable steps to comply with that paragraph.

Note: In a prosecution for an offence, the defendant bears a legal burden in relation to the matter in subsection (7)--see section 13.4 of the Criminal Code .

This section has effect subject to certain other provisions etc.

(8) This section has effect subject to:

(a) any other provision of this Act; and

(b) the regulations; and

(d) any other law.

Note: A petroleum titleholder is required to comply with any directions by NOPSEMA or the responsible Commonwealth Minister given under the following provisions:

(a) sections 574 and 576B (by NOPSEMA);

(b) section 574A (by the responsible Commonwealth Minister).

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Work practices
Item	This person...	must...
1	the registered holder of a petroleum exploration permit, petroleum retention lease or petroleum production licence	(a) carry out all petroleum exploration operations in the permit area, lease area or licence area in a proper and workmanlike manner and in accordance with good oilfield practice; and (b) carry out all petroleum recovery operations in the permit area, lease area or licence area in a proper and workmanlike manner and in accordance with good oilfield practice; and (c) control the flow, and prevent the waste or escape, in the permit area, lease area or licence area, of petroleum or water; and (d) prevent the escape, in the permit area, lease area or licence area, of any mixture of water or drilling fluid with petroleum or any other matter; and (e) prevent damage to petroleum - bearing strata in an area (whether in the offshore area or not) in relation to which the permit, lease or licence is not in force; and (f) keep separate each petroleum pool discovered in the permit area, lease area or licence area; and (g) keep separate such of the sources of water (if any) discovered in the permit area, lease area or licence area as the Titles Administrator, by written notice given to the registered holder, directs; and (h) prevent water or any other matter entering any petroleum pool through wells in the permit area, lease area or licence area except when required by, and in accordance with, good oilfield practice.
2	the registered holder of an infrastructure licence	(a) carry out operations authorised by the licence in a safe manner and in accordance with good oilfield practice and good processing and transport practice; and (b) control the flow, and prevent the waste or escape, from an infrastructure facility constructed under the licence, of water, petroleum or any product derived by processing petroleum.
3	the registered holder of a pipeline licence	(a) operate the pipeline in a proper and workmanlike manner; and (b) prevent the waste or escape of petroleum or water from the pipeline or from any secondary line, pumping station, tank station, valve station or water line.
4	the registered holder of a petroleum special prospecting authority or petroleum access authority	carry out all petroleum exploration operations in the authority area in a proper and workmanlike manner and in accordance with good oilfield practice.