Commonwealth Numbered Regulations - Explanatory Statements

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PETROLEUM (SUBMERGED LANDS) FEES AMENDMENT REGULATIONS 2003 (NO. 1) 2003 NO. 24

Statutory Rules 2003 No. 24

Issued by the Authority of the Minister for Industry, Tourism and Resources

Petroleum (Submerged Lands) Fees Act 1994

Petroleum (Submerged Lands) Fees Amendment Regulations 2003 (No. 1)

Section 7 of the Petroleum (Submerged Lands) Fees Act 1994 (the Fees Act) states that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Petroleum (Submerged Lands) Act 1967 (the Principal Act) involves a large number of decisions relating to the day-to-day administration of the Act, including the granting of exploration permits, retention leases, production, pipeline and infrastructure licences.

Section 4 of the Fees Act provides that the holders of these titles (permits, leases and licences) must pay a fee to the Designated Authority for each year of the term of the title. The fee is specified in, or calculated in accordance with, the Petroleum (Submerged Lands) Fees Regulations 1994.

The Regulations increase the level of prescribed fees to account for rises in the costs of administering petroleum titles since the last fees increase in 1990. Since that time the consumer price index has increased by around 30 per cent. The increase for these fees also incorporates a component to reflect the introduction of the goods and services tax.

In keeping with the Offshore Constitutional Settlement and section 129 of the Principal Act, the Commonwealth will continue to repay all fees (excluding the goods and services tax component) received for the day-to-day administration of the regime to State and Northern Territory Authorities to offset their costs.

Details of the Regulations are set out in the Attachment.

The Regulations commenced on 1 March 2003.

Authority: Section 7 of the Petroleum (Submerged Lands) Fees Act 1994

ATTACHMENT

Regulation 1 - Name of Regulations

This Regulation provides the title of the Regulations.

Regulation 2 - Commencement

This Regulation provides for the commencement of the Regulations on 1 March 2003.

Regulation 3 - Amendment of Petroleum (Submerged Lands) Fees Regulations 1994

This Regulation provides that the amendments to the Petroleum (Submerged Lands) Fees Regulations 1994 are as set out in Schedule 1.

SCHEDULE 1       AMENDMENTS

Item 1 - Paragraphs 4 (a) and (b)

This item increases the prescribed annual fee for an Exploration Permit from $1000 to $1,500 per permit or from $50 to $72 for each block to which the permit relates (whichever is the greater).

Item 2 - Regulation 5

This item increases the prescribed annual fee for a Retention Lease from $6,000 to $8,600 for each block to which the lease relates.

Item 3 - Regulation 6

This item increases the prescribed annual fee for a Production Licence from $18,000 to $25,800 for each block to which the licence relates.

Item 4 - Regulation 7

This item increases the prescribed annual fee for a Pipeline Licence from $80 to $115 per kilometre, or part kilometre, of the length of the pipeline.