Queensland Consolidated Regulations

GEOTHERMAL ENERGY REGULATION 2022 - REG 43

43 Working out wellhead value of geothermal energy

(1) The wellhead value of geothermal energy produced by or for a geothermal producer in a royalty return period is—

(a) the amount the geothermal producer could reasonably expect to realise if the geothermal energy were sold on a commercial basis (the
"projected amount" ); less

(b) the sum of the following for the period—

(i) the operating expenses for the geothermal energy;

(ii) any negative wellhead value deductable under subsection (2) .

(2) If, for a royalty return period, the operating expenses are more than the projected amount—

(a) the amount of the excess is a
"negative wellhead value" for the royalty return period; and

(b) the negative wellhead value may be deducted under subsection (1) (b) (ii) in a later royalty return period in the same year.

(3) To remove any doubt, it is declared that a geothermal producer is not entitled to receive any payment in relation to a negative wellhead value.