Commonwealth Consolidated Acts Commonwealth Consolidated ActsNote: See section 167.
In this Schedule:
"lessee's primary entitlement" has the meaning given by subclause 4(3).
"permittee's primary entitlement" has the meaning given by subclause 2(3).
"primary petroleum production licence" means a petroleum production licence granted as a result of an application under any of the following provisions:
(a) subclause 2(2) of this Schedule;
(b) subclause 2(4) of this Schedule;
(c) subclause 4(2) of this Schedule;
(d) subclause 4(4) of this Schedule;
(e) subsection 40(1) or (2) or 40B(2) or (3) of the repealed Petroleum (Submerged Lands) Act 1967 .
"secondary petroleum production licence" means a petroleum production licence granted as a result of an application under any of the following provisions:
(a) subclause 2(6) of this Schedule;
(b) subclause 4(6) of this Schedule;
(c) subsection 40(3) or 40B(4) of the repealed Petroleum (Submerged Lands) Act 1967 .
Part 2 -- Applying for a petroleum production licence
2 Application for petroleum production licence by holder of petroleum exploration permit to which the Royalty Act applies
Scope
(1) This clause applies to a petroleum exploration permit if the Royalty Act applies to the permit.
Note: The Royalty Act applies to a small number of North West Shelf titles.
Application for primary petroleum production licence--permittee's primary entitlement
(2) If a petroleum exploration permit is in force over a block that constitutes, or the blocks that constitute, a location, the permittee may, within the application period, apply to the Titles Administrator for the grant by the Joint Authority of a petroleum production licence over the block or blocks worked out using the table:
Permittee's primary entitlement | ||
Item | In this case... | the permittee may apply for a petroleum production licence over... |
1 | 5 of those blocks. | |
2 | 4 of those blocks. | |
3 | 3 of those blocks. | |
4 | 2 of those blocks. | |
5 | one of those blocks. | |
6 | that block. | |
Note: For application period , see clause 3.
(3) The number of blocks worked out using the table is the permittee's primary entitlement .
Application for primary petroleum production licence--blocks less than the permittee's primary entitlement
(4) If:
(a) a petroleum exploration permit is in force over blocks that constitute a location; and
(b) the permittee has not made an application under subclause (2) for a petroleum production licence over the permittee's primary entitlement;
the permittee may, within the application period, apply to the Titles Administrator for the grant by the Joint Authority of a petroleum production licence over a number of those blocks that is less than the permittee's primary entitlement. The permittee is not entitled to make more than one application under this subclause.
Note: For application period , see clause 3.
Application for variation of petroleum production licence
(5) If a petroleum exploration permittee is granted a petroleum production licence as a result of an application under subclause (4), the permittee may, within the application period, make an application, or a series of applications, to the Titles Administrator for the variation of the licence so as to include in the licence area any or all of the blocks that:
(a) formed part of the permittee's primary entitlement; and
(b) were not the subject of the application under subclause (4).
Note: For application period , see clause 3.
Application for secondary petroleum production licence
(6) If:
(a) a petroleum exploration permittee applies under subclause (2) for a petroleum production licence over the permittee's primary entitlement; or
(b) all of the following conditions are satisfied:
(i) the permittee is the holder of a petroleum production licence as a result of an application under subclause (4);
(ii) the licence is over some of the blocks forming the permittee's primary entitlement;
(iii) the permittee makes an application, or a series of applications, under subclause (5) for the variation of the licence;
(iv) the application, or series of applications, under subclause (5) covers the remainder of the blocks forming the permittee's primary entitlement;
the permittee may, within the application period, apply to the Titles Administrator for the grant by the Joint Authority of a petroleum production licence over any of the other blocks forming part of the location concerned.
(7) An application under this clause must:
(a) be in the approved form; and
(b) be accompanied by any information or documents required by the form.
(8) If the approved form requires the application to be accompanied by information or documents, an application under this clause is taken to be accompanied by the information or documents if the information or documents are given to the Titles Administrator before the end of the application period.
Note 1: Part 2.10 contains additional provisions about application procedures.
Note 2: Section 258 enables the Titles Administrator to require the applicant to give further information.
Note 3: An application under this clause is dealt with under Division 2 of Part 2.4.
(1) The application period for an application under clause 2 is:
(a) the period of 2 years after the day (the declaration day ) on which the block that constitutes the location concerned was, or the blocks that constitute the location concerned were, declared to be a location; or
(b) such longer period, not more than 4 years after the declaration day, as the Titles Administrator allows.
(2) The Titles Administrator may allow a longer period under paragraph (1)(b) only on written application made by the permittee within the period of 2 years mentioned in paragraph (1)(a).
(3) Despite subclause (1), if:
(a) a petroleum exploration permittee has applied for a petroleum retention lease under section 141 over a block or blocks; and
(b) a notice refusing to grant the petroleum retention lease has been given to the permittee under section 143; and
(ba) the reason for the refusal is that the Joint Authority is not satisfied as to the matter referred to in subparagraph 142(b)(ii);
the application period for an application made by the permittee under clause 2 for the grant of a petroleum production licence over the block or blocks is whichever of the following periods ends last:
(c) the period that is applicable under subclause (1);
(d) the period of 12 months after the day on which the notice was given.
Note: Clause 8 deals with the consequences of a failure to make an application within the application period.
4 Application for petroleum production licence by holder of petroleum retention lease to which the Royalty Act applies
Scope
(1) This clause applies to a petroleum retention lease if the Royalty Act applies to the lease.
Note: The Royalty Act applies to a small number of North West Shelf titles.
Application for primary petroleum production licence--lessee's primary entitlement
(2) If a petroleum retention lease is in force over one or more blocks, the lessee may apply to the Titles Administrator for the grant by the Joint Authority of a petroleum production licence over the blocks worked out using the table:
Lessee's primary entitlement | ||
Item | In this case... | the lessee may apply for a petroleum production licence over... |
1 | The lease is over 9 or more blocks | 5 of those blocks. |
2 | The lease is over 8 or 7 blocks | 4 of those blocks. |
3 | The lease is over 6 or 5 blocks | 3 of those blocks. |
4 | The lease is over 4 or 3 blocks | 2 of those blocks. |
5 | The lease is over 2 blocks | one of those blocks. |
6 | The lease is over one block | that block. |
(3) The number of blocks worked out using the table is the lessee's primary entitlement .
Application for primary petroleum production licence--blocks less than the lessee's primary entitlement
(4) If:
(a) a petroleum retention lease is in force over one or more blocks; and
(b) the lessee has not made an application under subclause (2) for a petroleum production licence over the lessee's primary entitlement;
the lessee may apply to the Titles Administrator for the grant by the Joint Authority of a petroleum production licence over a number of those blocks that is less than the lessee's primary entitlement. The lessee is not entitled to make more than one application under this subclause.
Application for variation of petroleum production licence
(5) If a petroleum retention lessee is granted a petroleum production licence as a result of an application under subclause (4), the lessee may make an application, or a series of applications, to the Titles Administrator for the variation of the licence so as to include in the licence area any or all of the blocks that:
(a) formed part of the lessee's primary entitlement; and
(b) were not the subject of the application under subclause (4).
Application for secondary petroleum production licence
(6) If:
(a) a petroleum retention lessee applies under subclause (2) for a petroleum production licence over the lessee's primary entitlement; or
(b) all of the following conditions are satisfied:
(i) the lessee is the holder of a petroleum production licence as a result of an application under subclause (4);
(ii) the licence is over some of the blocks forming the lessee's primary entitlement;
(iii) the lessee makes an application, or a series of applications, under subclause (5) for the variation of the licence;
(iv) the application, or series of applications, under subclause (5) covers the remainder of the blocks forming the lessee's primary entitlement;
the lessee may apply to the Titles Administrator for the grant by the Joint Authority of a petroleum production licence over any of the other blocks forming part of the lease.
(7) An application under this clause must:
(a) be in the approved form; and
(b) be accompanied by any information or documents required by the form.
(8) If the approved form requires the application to be accompanied by information or documents, an application under this clause is taken to be accompanied by the information or documents if the information or documents are given to the Titles Administrator before the end of the 10 - day period that began on the day after the application was made.
Note 1: Part 2.10 contains additional provisions about application procedures.
Note 2: Section 258 enables the Titles Administrator to require the applicant to give further information.
Note 3: An application under this clause is dealt with under Division 2 of Part 2.4.
Part 3 -- Obtaining a petroleum production licence
5 Secondary petroleum production licence--offer document must specify rate of royalty
If an offer document under section 171 relates to an application for a secondary petroleum production licence, the offer document must specify the rate of royalty determined by the Joint Authority under subsection 6(2) of the Royalty Act.
6 Limit on grant of secondary petroleum production licence
A secondary petroleum production licence may be granted to a petroleum exploration permittee or lessee over any one or more of the blocks that constitute a location only if:
(a) a primary petroleum production licence has been granted over a block or blocks forming part of that location; and
(b) the aggregate of:
(i) the number of blocks over which the primary petroleum production licence was granted; and
(ii) the number of blocks included in that petroleum production licence because of variations of the licence under clause 7;
is the permittee's or lessee's primary entitlement.
Part 4 -- Variation of licence area
7 Variation of licence area of petroleum production licence
Variation
(1) If:
(a) a licensee applies under subclause 2(5) or 4(5) for a variation of the petroleum production licence; and
(b) the Joint Authority is satisfied that the area comprised in the block, or any one or more of the blocks, specified in the application contains petroleum;
the Titles Administrator must, by written notice given to the licensee, vary the licence to include in the licence area the block or blocks which the Joint Authority is satisfied contains or contain petroleum.
When variation takes effect
(2) A variation of a petroleum production licence under this clause takes effect on the day on which notice of the variation is published in the Gazette .
Effect of variation
(3) On and after the day on which a variation of a petroleum production licence under this clause has effect:
(a) the blocks included in the licence area because of the variation are, for the remainder of the term of the licence, blocks in relation to which the licence is in force; and
(b) if the application for variation was made under subclause 2(5)--the petroleum exploration permit that is in force over those blocks ceases to be in force over those blocks; and
(c) if the application for variation was made under subclause 4(5)--the petroleum retention lease that is in force over those blocks ceases to be in force over those blocks.
(4) Paragraph (3)(a) has effect subject to Chapter 2.
Part 5 -- What happens if a block is not taken up
8 Revocation of petroleum exploration permit or petroleum retention lease to the extent to which it relates to a block not taken up
Permittee does not apply for a petroleum production licence or a petroleum retention lease
(1) If:
(a) a petroleum exploration permittee could apply under clause 2 in relation to a block; and
(b) the permittee does not:
(i) within the application period mentioned in subclause 3(1), make the application; or
(ii) within the application period mentioned in subsection 141(3), apply under section 141 for a petroleum retention lease;
then:
(c) the petroleum exploration permit is revoked to the extent to which it relates to that block; and
(d) the revocation has effect at the end of whichever is the later of the application periods mentioned in paragraph (b).
Permittee does not apply for a petroleum production licence
(1A) If:
(a) a petroleum exploration permittee applies under section 141 for a petroleum retention lease in relation to a block or blocks; and
(b) a notice refusing to grant the petroleum retention lease is given to the permittee under section 143; and
(c) the reason for the refusal is that the Joint Authority is not satisfied as to the matter referred to in subparagraph 142(b)(ii); and
(d) after the section 143 notice is given, the permittee does not, within the application period mentioned in subclause 3(3), apply under clause 2 for a petroleum production licence in relation to that block or those blocks;
then:
(e) the petroleum exploration permit is revoked to the extent to which it relates to that block or those blocks; and
(f) the revocation has effect at the end of the application period mentioned in subclause 3(3).
Permittee's application lapses
(2) If all applications made by a petroleum exploration permittee under clause 2 in relation to a block have lapsed:
(a) the petroleum exploration permit is revoked to the extent to which it relates to that block; and
(b) the revocation has effect:
(i) at the end of the application period; or
(ii) on the lapsing of the last of the applications;
whichever is the later.
Lessee's application lapses
(3) If all applications made by a petroleum retention lessee under clause 4 in relation to a block have lapsed:
(a) the petroleum retention lease is revoked to the extent to which it relates to that block; and
(b) the revocation has effect on the lapsing of the last of those applications.
Application for secondary petroleum production licence
(4) Despite subclauses (1), (2) and (3), if a petroleum exploration permittee or lessee applies for a secondary petroleum production licence:
(a) the petroleum exploration permit or petroleum retention lease is revoked to the extent to which it relates to any blocks forming part of the location concerned that are not the subject of:
(i) that application; or
(ii) any application for a primary petroleum production licence; or
(iii) an application for the variation of a primary petroleum production licence; and
(b) the revocation has effect on the making of the application.
Exception--permit affected by a change to the boundary of the coastal waters of a State or Territory
(5) This clause does not apply in relation to a petroleum exploration permit if:
(a) the permit has been granted on the basis that an area (the relevant area ) is within the offshore area of a State or the Northern Territory; and
(b) as a result of a change to the boundary of the coastal waters of the State or Territory, the relevant area:
(i) ceases to be within the offshore area of the State or Territory; and
(ii) falls within the coastal waters of the State or Territory; and
(c) immediately before the change, the relevant area was a part of the permit area.
(6) For the purposes of subclause (5):
(a) disregard section 283; and
(b)
it is immaterial whether the change occurred before, at or after the
commencement of this subclause.