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GEOTHERMAL ENERGY ACT 2010 No. 31 - SECT 549

549 Replacement of ch 3A (Provisions for GHG authorities)

Chapter 3A--

omit, insert--

'(1) Requirements and restrictions under this chapter relating to the granting of a petroleum tenure apply as well as any relevant requirements under chapter 2 or 3.

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

'(3) If a provision of this chapter conflicts with a provision of chapter 2 the provision of this chapter prevails to the extent of the inconsistency.

'(4) This chapter does not otherwise limit or affect the requirements of chapter 2.

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

'(6) Despite chapter 2, the activity is not an authorised activity for the petroleum tenure while the restriction applies or if the requirement has not been complied with.

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

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

'Subject to the other provisions of this chapter and chapters 2 and 3, 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 petroleum authority; or
(b) the carrying out of authorised activities for a petroleum authority.

'This part applies if--

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

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

(a) a statement complying with section 392AF (an information statement); and
(b) other information addressing the matters mentioned in subsection (2) (the assessment criteria), other than about attempts to consult with the overlapping tenure holder.

'(2) The assessment criteria are--

(a) compliance with the provisions of chapter 9; and
(b) the additional requirements under part 6 for proposed initial development plans; and
(c) the potential for the parties to make the following for the proposed petroleum lease--
(i) for a geothermal tenure--a geothermal coordination arrangement;
(ii) for a GHG tenure--a GHG coordination arrangement; and
(d) the economic and technical viability of the concurrent or coordinated carrying out of authorised activities for the proposed petroleum lease and the overlapping tenure; and
(e) the public interest.

'The information statement must--

(a) assess--
(i) the likely effect of proposed authorised activities for the proposed petroleum lease on the future carrying out of authorised activities for the overlapping tenure; and
(ii) the technical and commercial feasibility of coordinating the proposed authorised activities and the future carrying out of the authorised activities; and
(b) include proposals for the minimisation of potential adverse effects on possible future carrying out of authorised activities for the overlapping tenure.

'(1) The applicant must within 10 business days after making the petroleum lease application give the overlapping tenure holder a copy of the application other than any part of the application relating to the capability criteria.

'(2) If the Minister is reasonably satisfied the applicant has not complied with an obligation under this division, the petroleum lease application may be refused.

'(1) The overlapping tenure holder may lodge submissions about the petroleum 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 petroleum 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 activity 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;
(e) propose reasonable provisions for the safety management plan for the proposed petroleum lease.

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

'(1) This division 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 division 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 division does not apply, the petroleum lease application proceeds immediately to decision under chapter 2 as affected by division 7.

'The Minister must make a decision (the resource management decision) about whether to--

(a) grant the petroleum lease application; or
(b) give any overlapping authority priority for all or part of the relevant land; or
(c) not to grant the petroleum lease application and not to give any overlapping authority priority for any 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 recommended or given only if it is considered--

(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 petroleum lease is not commercially or technically feasible; and
(b) the public interest would be best served by not granting a petroleum lease to the applicant first.

'This division applies only if, under division 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 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 petroleum 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 petroleum 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 petroleum lease application may amend it so that a petroleum 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 petroleum 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 petroleum lease application may amend it so that a petroleum lease is only sought for all or part of the rest of the land.

Note--
If the petroleum lease application is not amended, see section 392AT (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 petroleum lease application may be decided.

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

(a) under division 4, a resource management decision is required; and
(b) the decision was not to grant the petroleum lease application and not to give any overlapping authority priority for any of the relevant land.

'This division applies 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 division 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 division 5 has been complied with the Minister decides to grant a petroleum lease for the land.

'The Minister may decide to refuse the petroleum lease application 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 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.

'In deciding the provisions of the petroleum lease the Minister must consider all of the following--

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

'(1) After the Minister decides whether or not to grant the petroleum lease, the chief executive must publish a notice about the outcome of the petroleum 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 petroleum lease--all the petroleum lease's conditions other than the mandatory conditions; and
(c) if, under division 4, a resource management decision is required and the decision was 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 petroleum 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 petroleum lease application; and
(d) the other proposed lease would, if it were granted, be an overlapping authority for the proposed petroleum lease;

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

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

(a) before the making of the 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 part applies if--

(a) a petroleum 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.

'(1) The Minister may 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 chapter 2 or 3 or this chapter; or
(b) satisfied the Minister about a matter that under chapter 2 or 3 or this chapter is required for the granting of the application.

'(2) Subsection (1) does not limit section 843.

Editor's note--
section 843 (Additional information may be required about application)

'(1) This section applies if land in the area of any of the following petroleum authorities is in the area of a geothermal lease or GHG lease--

(a) an authority to prospect;
(b) a data acquisition authority;
(c) a water monitoring authority.

'(2) However, this section does not apply if the same person holds the petroleum authority and the geothermal lease or GHG lease.

'(3) An authorised activity for the petroleum authority 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 (4), objected to--
(i) the carrying out of the activity; and
(ii) if chapter 9 requires a safety management plan for the petroleum authority--the safety management plan; or
(b) if an objection under paragraph (a) has been made--the Minister has, under section 392BD, decided the authorised activity may be carried out.
Note--
For notice of authorised activities, see section 392BF.

'(4) The objection must be written, given to the petroleum authority holder and lodged at the relevant departmental office.

'(1) This section applies if land in the area of any of the following petroleum authorities is in the area of a geothermal permit or a GHG authority other than a GHG lease--

(a) an authority to prospect;
(b) a data acquisition authority;
(c) a water monitoring authority.

'(2) An authorised activity for the petroleum authority 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 permit or GHG authority; and
(b) the authorised activity for the geothermal permit or GHG authority has already started.

'(1) This section applies if, under section 392BB, a geothermal lease or GHG lease holder has objected to the carrying out of an authorised activity by a petroleum authority holder.

'(2) This section also applies if there is a dispute between a petroleum authority holder and a geothermal permit or GHG authority holder about whether an authorised activity for the petroleum authority can be carried out under section 392BC.

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

(a) for section 392BB--whether the authorised activity may be carried out under that section; or
(b) for section 392BC--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 petroleum authority holder and the geothermal lease or GHG lease holder; or
(b) for a request about a matter mentioned in subsection (2)--the petroleum authority holder and the geothermal permit or GHG authority holder.

'(1) This section applies if--

(a) an authority to prospect is granted (the ATP); and
(b) land in the authority to prospect's area is in the area of, or in a proposed area under an application for any of the following (the other authority)--
(i) a geothermal permit;
(ii) a GHG permit;
(iii) a GHG data acquisition authority under the GHG storage Act.

'(2) It is a condition of the authority to prospect that its holder must, within 20 business days after the holder receives notice of the grant of the ATP, give the holder of, or the applicant for, the other authority a notice stating--

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

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

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

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

'(3) A notice under subsection (2) must 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 petroleum authority holder must give the other authority holder at least 30 business days notice stating where the activity is to be carried out.

'(5) Compliance with this section is a condition of the petroleum authority.

'(6) In this section--

designated activity means any authorised activity for the petroleum authority, other than--

(a) an incidental activity under section 33 or 112; or
(b) an activity only involving selecting places where other authorised activities for the petroleum authority may be carried out.

'(1) This section applies if--

(a) a petroleum 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 petroleum lease; and
(c) any of the following take place for the petroleum lease--
(i) a renewal;
(ii) a transfer;
(iii) a subletting of the lease or a share in the petroleum lease.

'(2) It is a condition of the petroleum lease that its holder must continue to be a party to the following for the lease while the other lease continues in force--

(a) if the other lease is a geothermal lease--a geothermal coordination arrangement;
(b) if the other lease is a GHG lease--a GHG coordination arrangement.

'If there is an overlapping tenure for a petroleum tenure, the petroleum tenure may be amended under section 848 only if the Minister has considered the interests of the overlapping tenure holder.

'This part imposes additional requirements for the following for which there is an overlapping authority (geothermal or GHG) that is an overlapping tenure--

(a) a proposed initial development plan for a proposed initial development plan for a petroleum lease;
(b) a proposed later development plan for a petroleum lease.

'The proposed development plan or amendment must include a statement of how the effects on and the interests of the overlapping tenure holder have or have not been considered having regard to the assessment criteria.

'(1) To the extent the area of the petroleum lease and the overlapping tenure coincide or will coincide, the proposed development plan must be consistent with any geothermal coordination arrangement or GHG coordination arrangement for that area.

'(2) Subsection (3) applies only if the overlapping tenure is an overlapping lease.

'(3) The proposed plan must, to the extent the area of the petroleum lease and the overlapping lease coincide, or will coincide, be consistent with the development plan for the overlapping lease.

'In deciding whether to approve the proposed development plan, the Minister must consider the assessment criteria.

'(1) This section applies if an information statement accompanies a petroleum lease application as required under this chapter.

'(2) The deciding of the application or the grant of the petroleum lease--

(a) does not affect the obligation to make a safety management plan for any operating plant in the petroleum lease's area; and
(b) is not of itself evidence that a safety management plan or purported safety management plan for an operating plant on the petroleum lease's area complies with chapter 9.

'(1) This section applies if--

(a) a person (an operator) proposes to be an operator of operating plant in the area of a petroleum tenure; and
(b) activities (relevant activities) carried out, or proposed to be carried out, at the plant may adversely affect the safe and efficient carrying out of authorised activities for an overlapping authority (geothermal or GHG) for the petroleum tenure; and
(c) the overlapping authority (geothermal or GHG) is an overlapping tenure.

'(2) Before any operator may operate relevant operating plant, each operator must have made reasonable attempts to consult with the overlapping tenure holder about relevant activities for the plant.

'(3) If there is more than 1 operator, the petroleum tenure holder may coordinate the consultation between the operators and the overlapping tenure holder.

'(4) For subsection (2), an operator is taken to have made reasonable attempts to consult if--

(a) the operator gives the overlapping tenure holder a copy of the relevant parts of the operator's proposed safety management plan concerning any relevant operating plant the operator proposes to operate for the relevant activities; and
(b) the overlapping tenure holder has not within 30 days after the giving of the copy made any proposal to the operator about provisions for the plan.

'(5) An operator must, before making or remaking a safety management plan for any relevant operating plant the operator operates or proposes to operate, have regard to any reasonable provisions for the plan proposed by the overlapping tenure holder concerning relevant activities for the plant.

'(6) However, the obligation under subsection (5) applies only to the extent the provisions are commercially and technically feasible for the operator or any relevant petroleum tenure holder.

'(7) If an operator makes a safety management plan for relevant operating plant and the plan includes provisions proposed by the overlapping tenure holder, the operator must--

(a) give the overlapping tenure holder a copy; and
(b) lodge at the relevant departmental office a notice stating any provisions proposed under subsection (5) and whether they were included in the plan.

'(8) In this section--

remaking, a safety management plan, includes an amendment or remaking of the plan of a type required under section 678.

'(1) This section applies if a dispute exists between an operator to which section 392BN applies and an overlapping tenure holder about the reasonableness of a provision proposed by the tenure holder for the operator's proposed safety management plan.

'(2) Section 387, chapter 12 and schedule 1 apply to the dispute as if it were a dispute to which those provisions apply.

Editor's note--
chapter 12 and schedule 1 (Reviews and appeals)'.


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