ICHTHYS LNG PROJECT BILL 2008 Explanatory Statement

Northern Territory Explanatory Statements

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ICHTHYS LNG PROJECT BILL 2008

2008

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

CHIEF MINISTER

ICHTHYS LNG PROJECT(SPECIAL PROVISIONS) BILL 2008
SERIAL NO. 10

EXPLANATORY STATEMENT

GENERAL OUTLINE

§ The Bill is to provide for reduced regulatory and or sovereign risk for Ichthys LNG Project.
§ Negotiations between the Northern Territory Government and the proponents for the Ichthys LNG Project have identified a number of areas within the Northern Territory Regulatory Framework which may increase risk for the Project.
§ The Bill authorises the Ichthys LNG Project Project Development Agreement which ensures that the deciding authority such as the Minister for Lands exercises their discretion in the manner agreed in the Agreement.
§ The Bill provides for the making of Regulations in relation to matters arising from the Agreement during a period of one year from the date of commencement of the Act.

NOTES ON CLAUSES

Clause 1. Short Title

This is a formal clause which provides for the citation of the Bill. The Bill when passed may be cited as the Ichthys LNG Project (Special Provisions) Act 2008.

Clause 2. Commencement

The Act is taken as having commenced 18 July 2008.

Clause 3. Act binds Crown

This clause makes it clear that the Act binds the Crown to the extent allowed by the legislative power of the Territory.

Clause 4. Definitions

Definitions are provided to aide in the interpretation and understanding of the Bill. In this case a definition is provided for Agreement and the Territory.

By defining Agreement the Bill clearly identifies the Agreement to which it applies.

It also inserts a definition for the Territory. Typically where an Act refers to the Territory the Minister responsible for the Act is taken as representing the Territory for the purposes of the Act. For avoidance of doubt the Bill defines the Territory as including the Minister responsible for the Crown Lands Act.

Clause 5. Implementation of, and giving effect to, Agreement

Clause 5.1

This Clause through authorises the implementation of the Agreement, ensures that actions to be taken by decision makers under Territory Statute involving the exercise of discretion are taken in accordance with the Agreement.

Clause 5.2

Defines the provisions to which Clause 5.3 applies. They are provisions that:
(a) Require the Grant of agreed tenure over Crown Land. Tenure includes an estate in fee simple, lease, license, or other tenure;
(b) Confer an option for the provision of an estate in fee simple in or a lease of Crown Land;
(c) Fixing of a purchase price in accordance with either the agreed fixed price or the agreed procedure for fixing the purchase price;
(d) Require the renewal or extension of the term of a lease;
(e) Require or authorize consent to the assignment, mortgage, charge or encumbrance of a lease;
(f) Require the grant of an easement;
(g) Require the Territory to enter into a covenant that runs with the land; and
(h) Restrains the Territory from dealing with the land.

Clause 5.3

In effect this Act takes precedent over other Acts, such as the Crown Lands Act to allow the Territory to give effect to the Agreement.

Clause 6 Land Development Corporation to give effect to Agreement

The Land Development Corporation while not a party to the Agreement is bound to act as if it were a party to the Agreement and fulfil its obligations under the Agreement. This includes requiring the Land Development Corporation to accept the transfer of certain lands and proving an interest in those lands in accord with the Agreement.

Clause 7 Specific Performance of Agreement

Stipulates that an order for specific performance may be made against the Territory or the Land Development Corporation requiring the Territory or the Land Development Corporation to fulfil their obligations as specified in the Agreement.

Clause 8 Regulation

Allows Regulations to be promulgated to amend the application of Territory Acts. This power is solely applicable to matters connected to or arising from the Agreement. It is limited to a period of 1 year from the date of commencement of the Act; that is, 18 July 2008.For the avoidance of doubt as this Act has retrospective application an action under this clause shall not diminish the rights of, or impose a liability on, a person save where this person is the Territory.

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