EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 316

 

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

 

Petroleum (Submerged Lands) Act 1967

 

Petroleum (Submerged Lands) (Data Management) Amendment Regulations 2007 (No. 1)

 

Section 157 of the Petroleum (Submerged Lands) Act 1967 (the Act) provides, in part, that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, of necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

The Act provides the legal framework for the exploration for, and the production of, petroleum in those parts of Australia's continental shelf which are under Commonwealth jurisdiction. Companies undertaking offshore petroleum activities are required to provide samples and data from such activities within a specified timeframe to ensure the adequate collection and timely dissemination of petroleum data for the long term benefit of the Australian community.

 

The Petroleum (Submerged Lands) (Data Management) Regulations 2004 implement a management scheme for the adequate collection, submission and release of data and samples arising from offshore petroleum activities. Those Regulations provide the processes for public disclosure of the data to enable the Government to promote efficient and sustainable exploitation of Australia's offshore petroleum resources in the national interest.

 

The Regulations increase the confidentiality periods for speculative seismic data in order to attract new investment in non-exclusive seismic activity in Australian waters. They also remove the need for quarterly reports pertaining to exploration permits and include a provision to ensure that all data and samples must be kept in Australia unless otherwise approved.

 

Details of the Regulations are set out in the Attachment.

The Regulations were developed in consultation with the relevant State and Northern Territory authorities via the Upstream Petroleum and Geothermal Subcommittee of the Ministerial Council on Mineral and Petroleum Resources and informal consultations with the Australian Petroleum Production and Exploration Association.

 

The Regulations commenced on the day they were registered on the Federal Register of Legislative Instruments.

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

 

Details of the Petroleum (Submerged Lands) (Data Management) Amendment Regulations 2007 (No. 1)

 

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 the day after they are registered.

 

Regulation 3 – Amendment of Petroleum (Submerged Lands) (Data Management) Regulations 2004

 

This regulation provides that Schedule 1 amends the Petroleum (Submerged Lands) (Data Management) Regulations 2004.

 

SCHEDULE 1 AMENDMENTS

 

Item [1] – Regulation 4, after definition of nominated address

 

This item inserts a definition for non-exclusive data which is not already defined in the Act. It is intended to provide clarification that data collected for exclusive use of a sole buyer is not entitled to the longer confidentiality period applicable to data collected for sale to any potential buyers. Non-exclusive data receives an extended confidentiality period to provide a commercial incentive for seismic survey operators to conduct speculative surveys.

 

Item [2] – Regulation 4, definition of seismic data grid, subparagraph (c) (i)

 

This item increases the interstices of the seismic data grid from 2 kilometres by 2 kilometres to 5 kilometres in length by 5 kilometres in breadth. The existing requirement to submit a 2 dimensional extracted grid on a 2 kilometres by 2 kilometres basis from 3 dimensional data is considered by seismic contractors as a disincentive to invest in speculative 3 dimensional surveys. This is because the release of a subset of the data free of charge reduces the value of the data retained and the prospects of making commercial sales of the 3 dimensional data. The amendment is designed to encourage investment in speculative 3 dimensional surveys by better balancing the interest of seismic contractors in retaining confidentiality of the data against the petroleum exploration industry's interest in gaining access to that data as quickly and cheaply as possible.

 

 

Items [3-7] – Subregulation 29(3), table, items 1 – 5, column 2

 

This is a consequential change to reflect references to the insertion of a new item 6 in the table.

 

 

 

 

 

 

Item [8] – Subregulation 29(3), table, items 5 and 6

 

This item amends existing item 5 and also inserts a new item 6 in the table which extends the confidentiality period for non-exclusive 2 dimensional and 3 dimensional seismic data. This has been changed to allow seismic contractors to retain the rights to the data for longer periods, to encourage increased investment in new non-exclusive seismic surveys.

 

Item [9] Regulation 36

 

This item provides that all data and petroleum mining samples must be kept in Australia unless otherwise approved by the Designated Authority. Under the Act the Designated Authority in respect of the adjacent area in respect of a State or the Northern Territory is the State or Northern Territory Minister.

 

This requirement was contained in the "Schedule of Specific Requirements as to Offshore Petroleum Exploration and Production" and was inadvertently omitted when the Petroleum (Submerged Lands) (Data Management) Regulations 2004 were developed. The Schedule, which is currently in the process of being replaced by regulations, comprises all the current directions of a standing or permanent nature which have been issued under section 101 of the Act.

 

Item [10] Schedule 1, item 204

 

This item repeals the need for quarterly reports about exploration carried out in an exploration permit as it has been determined they are no longer required.