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GEOTHERMAL ENERGY ACT 2010 No. 31 - SECT 525

525 Replacement of pt 7AAC (Provisions for GHG authorities)

Part 7AAC--

omit, insert--

'(1) Requirements and restrictions under this part apply as well as any relevant requirements and restrictions under parts 3 to 7AAB.

'(2) If this part imposes a requirement for or a restriction on the granting of a mining lease, the mining lease can not be granted if the restriction applies or if the requirement has not been complied with.

'(3) If a provision of this part conflicts with a provision of any of parts 3 to 7AAB the provision of this part prevails to the extent of the inconsistency.

'(4) This part does not otherwise limit or affect the requirements of parts 3 to 7AAB.

'(5) Subsection (6) applies if this part imposes a requirement for or a restriction on the carrying out of an authorised activity for a mining tenement.

'(6) Despite parts 3 and 7, the activity is not an authorised activity for the mining tenement while the restriction applies or if the requirement has not been complied with.

'(1) An overlapping authority (geothermal or GHG), for a mining tenement, is any geothermal tenure or GHG authority all or part of the area of which is in the mining tenement's area.

'(2) An overlapping authority (geothermal or GHG), for a proposed mining tenement, is any geothermal tenure or GHG authority all or part of the area of which will, if the proposed mining tenement is granted, be in the mining tenement's area.

'Subject to the other provisions of this part and parts 3 to 7AAB, the Geothermal Act, GHG storage Act, a geothermal tenure or a GHG authority does not limit or otherwise affect--

(a) the power under this Act to grant a mining tenement over land in the area of an overlapping authority (geothermal or GHG) for the proposed mining tenement; or
(b) the carrying out of authorised activities for a mining tenement.

'This division applies if--

(a) a person (the applicant) wishes to make a mining lease application; and
(b) there is an overlapping authority (geothermal or GHG) for the proposed mining lease; and
(c) the overlapping authority (geothermal or GHG) is a geothermal tenure or GHG tenure (the overlapping tenure).

'(1) The mining lease application must include--

(a) a statement complying with section 318ELAR (an information statement); and
(b) other information addressing the matters mentioned in subsection (2) (the assessment criteria).
Note--
Part 7AA, division 9 also imposes development plan requirements for a proposed coal mining lease or oil shale mining lease.

'(2) The assessment criteria are--

(a) the potential for the parties to make the following for the proposed mining lease--
(i) for a geothermal tenure--a geothermal coordination arrangement;
(ii) for a GHG tenure--a GHG coordination arrangement; and
(b) the economic and technical viability of the concurrent or coordinated carrying out of authorised activities for the proposed mining lease and the overlapping tenure; and
(c) the public interest.

'The information statement must assess--

(a) the likely effect of proposed activities under the proposed mining lease on the future carrying out of authorised activities for the overlapping tenure; and
(b) the technical and commercial feasibility of coordinating the proposed activities and the future carrying out of the authorised activities.

'(1) The applicant must within 10 business days after making the mining lease application give the overlapping tenure holder a copy of the application.

'(2) If the Minister is reasonably satisfied the applicant has not complied with subsection (1), the Minister may refuse the mining lease application.

'(1) The overlapping tenure holder may lodge submissions about the mining lease application (holder submissions) at the relevant departmental office.

'(2) However, holder submissions may be lodged only within 4 months after the holder is given a copy of the application.

'(3) Holder submissions may do all or any of the following--

(a) state that the holder does not object to the granting of the proposed mining lease;
(b) if the overlapping tenure is a geothermal permit or GHG permit--
(i) state that the holder does not wish any priority for the carrying out of authorised activities for any future lease that may arise from the permit (overlapping authority priority); or
(ii) include a proposal by the overlapping tenure holder for the authorised activities for which overlapping authority priority is sought;
(c) include information about authorised activities carried out under the overlapping tenure;
(d) include information relevant to the assessment criteria.

'(4) The holder must give the applicant a copy of the holder submissions.

'(1) This subdivision applies if--

(a) the overlapping tenure is a geothermal permit or GHG permit (the overlapping permit); and
(b) the overlapping permit holder has lodged holder submissions within 4 months after the holder was given a copy of the application; and
(c) the submissions state that the holder wishes overlapping authority priority.

'(2) However, this subdivision does not apply if under the Geothermal Act, chapter 5 or the GHG storage Act, chapter 4, overlapping authority priority has been given for any of the relevant land.

Note--
If this subdivision does not apply, the mining lease application proceeds immediately to a decision under part 7 as affected by subdivision 7.

'This subdivision provides for the Minister to make a decision (the resource management decision) about whether to--

(a) recommend, under section 271, the grant of the mining lease; or
(b) give any overlapping authority priority for all or part of the relevant land; or
(c) not to recommend the granting of the mining lease and not to give any overlapping authority priority for all or part of the relevant land.

'The Minister must consider the following in making the resource management decision--

(a) the information statement;
(b) the assessment criteria;
(c) the holder submissions;
(d) the public interest.

'Overlapping authority priority may be given only if the Minister considers--

(a) either--
(i) it is unlikely the applicant and the overlapping permit holder will enter into--
(A) for a geothermal permit--a geothermal coordination arrangement; or
(B) for a GHG permit--a GHG coordination arrangement; or
(ii) an arrangement mentioned in subparagraph (i) for the proposed mining lease is not commercially or technically feasible; and
(b) the public interest would be best served by not granting a mining lease to the applicant first.

'This subdivision applies only if under subdivision 4, a resource management decision is required and the decision is to give overlapping authority priority for all or part of the relevant land.

'(1) The chief executive must give the applicant and the overlapping permit holder written notice of the resource management decision.

'(2) The notice must invite the overlapping permit holder to, within 6 months after the giving of the notice (the overlapping authority application period), apply for a lease as follows (an overlapping lease) for the land mentioned in subsection (3)--

(a) if the overlapping permit is a geothermal permit--a geothermal lease;
(b) if the overlapping permit is a GHG permit--a GHG lease.

'(3) For subsection (2), the land is--

(a) if the overlapping authority priority is for all of the land--for all of the land; or
(b) if the priority is for part of the land--for that part.

'(1) This section applies if--

(a) the overlapping authority priority is for all of the land; and
(b) within the overlapping authority application period the overlapping permit holder applies for an overlapping lease for all of the land.

'(2) A further step can not be taken to decide the mining lease application until after the overlapping lease application has been decided.

Note--
The Geothermal Act, chapter 5, part 5 and the GHG storage Act, chapter 4, part 5 provide for refusal of the overlapping lease application if it is not pursued in a timely manner.

'(3) If the decision on the overlapping lease application is to grant an overlapping lease for all of the land, the mining lease application is taken to have lapsed.

'(1) This section applies if the overlapping permit holder applies for an overlapping lease for part of the land within the overlapping authority application period.

'(2) The person who made the mining lease application may amend it so that a mining lease is only sought for all or part of the rest of the land.

'(3) Unless the amendment is made, a further step can not be taken to decide the mining lease application until after the overlapping lease application has been decided.

'(4) If--

(a) the amendment has not been made; and
(b) the decision on the overlapping lease application is to grant an overlapping lease for part of the land;

the person who made the mining lease application may amend it so that a mining lease is only sought for all or part of the rest of the land.

Note--
If the mining lease application is not amended, see section 318ELBF (Application may be refused if no reasonable prospects of future geothermal or GHG coordination arrangement).

'If the overlapping permit holder does not apply for an overlapping lease for any of the land within the overlapping authority application period, the mining lease application may be decided.

'The mining lease application is taken to have lapsed if--

(a) under subdivision 4, a resource management decision is required; and
(b) the decision was not to recommend the granting of the mining lease and not to give any overlapping authority priority for any of the relevant land.

'This subdivision applies only if--

(a) the overlapping tenure holder has not lodged holder submissions within 4 months after the holder was given a copy of the application (the submission period) or at all; or
(b) the overlapping tenure holder has lodged holder submissions within the submission period stating that the holder does not wish any overlapping authority priority; or
(c) under subdivision 4, a resource management decision is required and--
(i) the resource management decision is not to give overlapping authority priority for any of the relevant land; or
(ii) the resource management decision is to give overlapping authority priority for all or part of the relevant land and after subdivision 5 has been complied with the Minister decides to recommend the granting of a mining lease for the land.

'(1) This section applies if--

(a) the Minister is satisfied the applicant and the overlapping tenure holder have made reasonable attempts to reach the following (a relevant arrangement)--
(i) if the overlapping tenure is a geothermal permit--a proposed geothermal coordination arrangement;
(ii) if the overlapping tenure is a GHG permit--a proposed GHG coordination arrangement; and
(b) either--
(i) the overlapping tenure holder has lodged a written notice at the relevant departmental office stating there are no reasonable prospects of a relevant arrangement being made; or
(ii) a relevant arrangement has not been lodged for approval by the Minister and the Minister considers the applicant and the overlapping tenure holder have had a reasonable opportunity to make a relevant arrangement.

'(2) The Minister may decide to refuse the application without making any recommendation to the Governor in Council about the application.

'(1) In making a recommendation as follows, regard must be had to the prescribed criteria--

(a) recommending conditions of the mining lease, to be determined under section 276(1)(n);
(b) recommending, under section 284, the term of the mining lease.

'(2) In this section--

prescribed criteria means all of the following--
(a) the information statement;
(b) the assessment criteria;
(c) any holder submissions;
(d) the effect of the mining lease on the safe and efficient carrying out of authorised activities for the overlapping tenure;
(e) for an overlapping permit--the effect of the mining lease on the safe and efficient carrying out of authorised activities for any future lease that may arise from the permit.

'(1) After the Governor in Council decides whether or not to grant the mining lease, the chief executive must publish a notice about the outcome of the mining lease application in or on at least 1 of the following--

(a) the gazette;
(b) the department's website;
(c) another publication the chief executive considers appropriate.

'(2) The notice must state--

(a) the decision; and
(b) if the decision was to grant the mining lease--all conditions decided by the Governor in Council; and
(c) if, under subdivision 4, a resource management decision is required and the decision is to give overlapping authority priority for all or part of the land--the decision and the reasons for it.

'(3) However, if the chief executive considers information in a condition is commercial-in-confidence, the chief executive may instead of publishing the condition publish a statement about its intent.

'If--

(a) a mining lease application is made; and
(b) before the making of that application, an application (the other application) was made for a geothermal lease or GHG lease (the other proposed lease) but not decided; and
(c) the other application had not been decided before the making of the mining lease application; and
(d) the other proposed lease would, if it were granted, be an overlapping authority (geothermal or GHG) for the proposed mining lease;

the mining lease application must not be decided until the other application has been decided.

'(1) This section applies for a mining lease application if--

(a) before the making of the application, an approval under the Environmental Protection Act, chapter 3, part 2 was granted for the voluntary preparation of an EIS; and
(b) the EIS is for a project that is, or includes, a proposed geothermal lease or GHG lease (the proposed lease) for land the subject of the application.

'(2) The application must not be decided until--

(a) if no application is made for the proposed lease within 1 year after the granting of the approval--the end of that year; or
(b) if an application is made for the proposed lease within that year--that application is decided.

'(1) This section applies for a mining lease application if--

(a) before the making of the mining lease application a significant project was declared; and
(b) the project is, or includes, a proposed geothermal lease or GHG lease (the proposed lease) for land the subject of the application.

'(2) The application must not be decided until--

(a) if no application is made for the proposed lease within 1 year after the making of the declaration--the end of that year; or
(b) if an application is made for the proposed lease within that year--that application is decided.

'This division applies if--

(a) a mining lease application is made in response to an invitation given because of a resource management decision under the Geothermal Act or the GHG storage Act; and
(b) the application is made within 6 months after the giving of the invitation.

'The Minister may, without making any recommendation to the Governor in Council about the application, decide to refuse the application if satisfied the applicant has not in a timely manner--

(a) taken any step for the application required of the applicant under part 7, part 7AA or this part; or
(b) satisfied the Minister about a matter that, under part 7, part 7AA or this part, is required for the Minister to recommend the granting of the mining lease.

'(1) This section applies if--

(a) land in the area of a prospecting permit is in the area of a geothermal lease or GHG lease; and
(b) the prospecting permit and the geothermal lease or GHG lease are not held by the same person.

'(2) An authorised activity for the prospecting permit may be carried out on the land only if--

(a) the geothermal lease or GHG lease holder has not, in the way required under subsection (3), objected to the carrying out of the activity; or
(b) if an objection under paragraph (a) has been made--the Minister has, under section 318ELBP, decided the authorised activity may be carried out.
Note--
For notice of authorised activities, see section 318ELBS.

'(3) The objection must be written and given to the prospecting permit holder and lodged at the relevant departmental office.

'(1) This section applies if land is in the area of a mining tenement and a geothermal tenure or GHG authority and section 318ELBN does not apply.

'(2) An authorised activity for the mining tenement can not be carried out on the land if--

(a) carrying out the activity adversely affects the carrying out of an authorised activity for the geothermal tenure or GHG authority; and
(b) the authorised activity for the geothermal tenure or GHG authority has already started.

'(1) This section applies if, under section 318ELBN, a geothermal lease or GHG lease holder has objected to the carrying out of an authorised activity by a prospecting permit holder.

'(2) This section also applies if--

(a) section 318ELBO applies to a mining tenement holder and a geothermal tenure or GHG authority holder; and
(b) there is a dispute between the holders about whether an authorised activity for the mining tenement can be carried out under that section.

'(3) Either of the parties may, by a notice in the approved form, ask the Minister to decide--

(a) for section 318ELBN--whether the authorised activity may be carried out under that section; or
(b) for section 318ELBO--whether the authorised activity may be carried out under that section.

'(4) Before making the decision, the Minister must give the parties a reasonable opportunity to make submissions about the request within a reasonable period.

'(5) The Minister must, after complying with subsection (4) and considering any submission made under that subsection, decide the matter and give the parties notice of the decision.

'(6) The Minister's decision binds the parties.

'(7) If the request is about a matter mentioned in subsection (1), the Minister may impose conditions on any decision that the authorised activity may be carried out.

'(8) In this section--

parties means--

(a) for a request about a matter mentioned in subsection (1)--the authority to prospect holder and the geothermal lease or GHG lease holder; or
(b) for a request about a matter mentioned in subsection (2)--the mining tenement holder and the geothermal tenure or GHG authority holder.

'(1) This section applies if--

(a) a mining tenement as follows is granted--
(i) a mining claim;
(ii) a mineral development licence;
(iii) an exploration permit; and
(b) land in the mining tenement's area is in the area of, or in a proposed area under an application for, a geothermal tenure or GHG authority other than a geothermal lease or GHG lease.

'(2) It is a condition of the mining tenement that its holder must within 20 business days after the holder receives notice of the grant of the tenement give the geothermal tenure or GHG authority holder or the applicant a written notice stating--

(a) the mining tenement has been granted; and
(b) the mining tenement holder's name; and
(c) the term of the mining tenement.

'If there is an overlapping authority (geothermal or GHG) for a mining lease, a recommendation under section 294 for the variation of a condition of the mining lease must not be made unless the interests of the authority holder have been considered.

'(1) This section applies to a mining tenement holder if there is either of the following (the other authority) for the mining tenement--

(a) an overlapping authority (geothermal or GHG);
(b) a geothermal tenure or GHG authority sharing a common boundary with the mining tenement.

'(2) Before the mining tenement holder first starts a designated activity in the other authority's area, the mining tenement holder must give the other authority holder at least 30 business days notice of the activity.

'(3) A notice under subsection (2) must be written and state--

(a) when the designated activity is to start; and
(b) where the designated activity is to be carried out; and
(c) the nature of the activity.

'(4) Before changing the land on which the designated activity is being carried out, the mining tenement tenure holder must give the other authority holder at least 30 business days notice in writing stating where the activity is to be carried out.

'(5) Compliance with this section is a condition of the mining tenement.

'(6) In this section--

designated activity means any authorised activity for the mining tenement, other than--

(a) an authorised activity for the mining tenement that is the same as or similar to an incidental activity under the Petroleum and Gas (Production and Safety) Act, section 33 or 112; or
(b) an activity only involving selecting places where other authorised activities for the mining tenement may be carried out.

'(1) This section applies if--

(a) a mining lease has an overlapping authority (geothermal or GHG) that is a geothermal lease or GHG lease (the other lease); and
(b) a geothermal coordination arrangement or GHG coordination arrangement applies to the mining lease; and
(c) a renewal, assignment, consolidation or subletting takes place for the mining lease.

'(2) It is a condition of the mining lease that its holder must continue to be a party to a GHG coordination arrangement for the mining lease while the other lease continues in force.'.



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