New South Wales Repealed Regulations

This legislation has been repealed.

PETROLEUM (ONSHORE) REGULATION 2007 - REG 24AB

24AB Refunds or rebates of royalty where contribution made to authorised fund providing for community benefits

(1) In this clause:

"authorised fund" means a fund the subject of an order under this clause.

"exploration phase" , in relation to a petroleum title, means the period during which the holder of that petroleum title carries out prospecting in the project area for that title under the authority of an exploration licence, assessment lease or special prospecting authority.

"project area" , in relation to a petroleum title held by a person, means the local government area in which prospecting or mining authorised by the petroleum title is carried out and any local government area adjacent to that area that is affected by that prospecting or mining.

(2) Declaration of authorised fund The Minister may, by order published in the Gazette, declare a fund that is administered by a government entity, and that has as its principal object the provision of benefit to the community, to be an authorised fund for the purpose of this clause.

(3) An order must specify the geographical area to which the authorised fund relates.

(4) An order may also specify the following:

(a) the government entity that administers the relevant authorised fund,

(b) the guidelines that must be followed by that government entity in administering the authorised fund.

(5) The entity that administers an authorised fund is to:

(a) comply with any guidelines specified in the order that declares the fund to be an authorised fund, and

(b) notify the Chief Commissioner, at the end of each financial year, of the details of any holder of a petroleum title who has made a contribution to an authorised fund and the value of the contributions made to the fund.

(6) Rebates against royalty payable For the purposes of section 91A of the Act, the holder of a petroleum title is eligible for a rebate of royalty payable by the holder in respect of petroleum recovered by that holder under that petroleum title, or any other petroleum title in the same project area as the title in respect of which royalty was paid or is payable, if:

(a) a contribution was made to an authorised fund by that holder of that title in respect of any petroleum title held by that holder in the project area, and

(b) any part of the project area to which the petroleum title relates is located within the area specified in the Ministerial order as the area to which the authorised fund relates, and

(c) refunds or rebates, or both, have not previously been paid or claimed in respect of the total amount of the contribution in the year.

(7) A rebate under this clause:

(a) first becomes payable at the end of the first full financial year (1 July to 30 June) in which the holder of the title recovers petroleum in relation to which royalty is payable under the authority of a production lease in the title's project area, and

(b) is to be offset against the amount of royalties owing by the holder of the title for any title in the same project area in the relevant financial year.

(8) To avoid doubt, in the case where the holder of a petroleum title made a contribution to an authorised fund during the exploration phase that relates to the title, the rebate is carried over and credited against royalty payable in the first full production year referred to in subclause (7) (a).

(9) The amount that a holder of a petroleum title who is liable to pay royalty in a financial year is entitled to claim as a rebate on the royalty payment in the same year as a contribution is made, or that is carried over in accordance with subclause (8), is $1 for every $2 that the holder of the title contributed to an authorised fund, up to a maximum of 10% of the royalty payable by the holder of the title in relation to production in the title's project area in that year.

(10) Refunds of royalty paid For the purposes of section 91A of the Act, the holder of a petroleum title is eligible for a refund of royalty paid by the holder in respect of petroleum recovered by that holder under that petroleum title, or any other petroleum title in the same project area as the title in respect of which royalty was paid or is payable, if:

(a) a contribution was made to an authorised fund by that holder of that title in respect of any petroleum title held by that holder in the project area, and

(b) any part of the project area to which the petroleum title relates is located within the area specified in the Ministerial order as the area to which the authorised fund relates, and

(c) an overpayment of royalty has been paid after a rebate has been calculated and any possible rebate against royalty has been exhausted, and

(d) refunds or rebates, or both, have not previously been paid or claimed in respect of the total amount of the contribution in the year.

(11) A refund under this clause first becomes payable at the end of the first full financial year (1 July to 30 June) in which the holder of the title recovers petroleum, in relation to which royalty was paid, under the authority of a production lease in the title's project area.

(12) The amount that a holder of a petroleum title who was paid royalty in a financial year is entitled to claim as a refund on royalty paid in the same year as a contribution is made is $1 for every $2 that the holder of the title contributed to an authorised fund, up to a maximum of 10% of the royalty paid by the holder of the title in relation to production in the title's project area in that year.

(13) Refunds (of royalty paid) and rebates (against royalty payable) A refund or rebate does not apply in relation to any period where the obligation to pay royalty arose because gas was beneficially produced during the exploration phase in relation to the title, in accordance with section 28B (Right to beneficial use of gas yielded through prospecting) of the Act and clause 13A.

(14) To avoid doubt, no refund or rebate is payable in relation to any interest earned on any contribution to an authorised fund.