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GREENHOUSE GAS STORAGE ACT 2009 No. 3 - SECT 554

554 Insertion of new ch 3A

After chapter 3--

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 GHG authority, for a petroleum authority is any GHG authority, all or part of the area of which is in the petroleum authority's area.

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

'The GHG public interest is a consideration of each of the following--

(a) government policy;
(b) environmental impacts;
(c) employment creation;
(d) social impacts;
(e) the overall economic benefit for the State, or a part of the State, in the short and long term;
(f) impacts on aesthetic, amenity or cultural values.

'Subject to the other provisions of this chapter and chapters 2 and 3, the GHG storage Act 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 GHG authority for the proposed petroleum lease; and
(c) the GHG authority is a GHG tenure.

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

(a) a statement that complies with section 392AG (a GHG statement); and
(b) other information that addresses the matters mentioned in subsection (2) (the GHG assessment criteria), other than about attempts to consult with the GHG tenure holder.

'(2) The GHG 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 a GHG coordination arrangement for the proposed petroleum lease; and
(d) the economic and technical viability of the concurrent or coordinated carrying out of authorised activities for the proposed petroleum lease and the GHG tenure; and
(e) the GHG public interest.

'(1) The GHG statement must--

(a) assess--
(i) the likely effect of proposed authorised activities for the proposed petroleum lease on the future carrying out of GHG storage activities under the GHG tenure; and
(ii) the technical and commercial feasibility of coordinating the proposed authorised activities and the future carrying out of the GHG storage activities; and
(b) include a proposed safety management plan for all operating plant proposed to be operated under the proposed petroleum lease that may affect the possible future safe and efficient carrying out of the GHG storage activities.

'(2) The proposed safety management plan must--

(a) for activities of the plant that may affect future safe and efficient future carrying out of the GHG storage activities--comply with the requirements under section 675 for a safety management plan; and
(b) include proposals for the minimisation of potential adverse effects on possible future carrying out of GHG storage activities under the GHG tenure.

'(1) The applicant must within 10 business days after making the petroleum lease application give the GHG 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 GHG 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 GHG tenure is a GHG permit--
(i) state that the holder does not wish any priority (overlapping authority priority) for GHG stream storage under any future GHG lease that may arise from the GHG permit; and
(ii) include a proposal by the GHG tenure holder for GHG stream storage under any future GHG lease that may arise from the GHG permit;
(c) include information about authorised activities carried out under the GHG tenure;
(d) include information relevant to the GHG 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 GHG tenure is a GHG permit; and
(b) the GHG 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 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 GHG statement;
(b) the GHG assessment criteria;
(c) the holder submissions;
(d) the GHG public interest.

'Overlapping authority priority may be recommended or given only if it is considered--

(a) either--
(i) it is unlikely that the applicant and the GHG permit holder will enter into a GHG coordination arrangement; or
(ii) a GHG coordination arrangement for the proposed petroleum lease is not commercially or technically feasible; and
(b) the GHG 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 that decision was to give overlapping authority priority for all or part of the relevant land.

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

'(2) The notice must invite the GHG permit holder to, within 6 months after the giving of the notice (the overlapping GHG lease application period), apply for a GHG lease--

(a) if the 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 the priority is for all of the land and within the overlapping GHG lease application period the overlapping GHG permit holder applies for a GHG lease for all of the land.

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

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

'(3) If the decision on the GHG lease application is to grant a GHG lease for all of the land, the petroleum lease application is taken to have lapsed.

'(1) This section applies if the overlapping GHG permit holder applies for a GHG lease for part of the land within the overlapping GHG lease 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 GHG lease application has been decided.

'(4) If--

(a) the amendment has not been made; and
(b) the decision on the GHG lease application is to grant a GHG 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 392AU (Application may be refused if no reasonable prospects of GHG coordination arrangement).

'If the GHG permit holder does not apply for a GHG lease for any of the land within the overlapping GHG lease 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) that 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 GHG 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 GHG 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 was not to give overlapping authority priority for any of the relevant land; or
(ii) the resource management decision was 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 GHG tenure holder have made reasonable attempts to reach a proposed GHG coordination arrangement (a relevant arrangement); and
(b) either--
(i) the GHG 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 GHG 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 GHG statement;
(b) the GHG assessment criteria;
(c) any holder submissions;
(d) the affect of the petroleum lease on the safe and efficient carrying out of GHG storage activities under the GHG tenure;
(e) if the GHG tenure is a GHG permit--the affect of the petroleum lease on the safe and efficient carrying out of GHG storage activities under any future GHG 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 conditions of the petroleum lease other than the mandatory conditions; and
(c) if under division 4, a resource management decision was required and that 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 that information in any condition is commercial-in-confidence, the chief executive may, instead of publishing the condition, publish a statement about the intent of the condition.

'If--

(a) a petroleum lease application is made; and
(b) before the making of that application a GHG lease application had been made but not decided; and
(c) the GHG lease application had not been decided before the making of the GHG lease application; and
(d) if the petroleum lease and the GHG lease were both granted, the GHG lease would be an overlapping GHG authority for the petroleum lease;

the petroleum lease application must not be decided until the GHG lease 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 GHG lease for land the subject of the application.

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

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

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

(a) if no application is made for the GHG lease within 1 year after the making of the declaration--the end of that year; or
(b) if an application is made for the GHG 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 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 (2) 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 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 GHG lease and the petroleum authority.

'(3) An authorised activity for the petroleum authority may be carried out on the land only if--

(a) the 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 decided under section 392BE that the authorised activity may be carried out.
Note--
For notice of authorised activities, see section 392BG.

'(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 GHG permit--

(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 it out adversely affects the carrying out of an authorised activity for the GHG permit; and
(b) the authorised activity for the GHG permit has already started.

'(1) This section applies if, under section 392BC, a 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 GHG permit holder about whether an authorised activity for the petroleum authority can be carried out under section 392BD

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

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

'(1) This section applies if--

(a) an authority to prospect is granted; and
(b) land in the authority to prospect's area is in the area of, or in a proposed area under an application for, a GHG authority other than a GHG lease.

'(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, give the holder of, or the applicant for, the GHG authority a notice stating--

(a) that the authority to prospect has been granted; and
(b) the authority to prospect holder's name; and
(c) the term of the authority to prospect.

'(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 GHG authority;
(b) a GHG authority that shares 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--

GHG storage reservoir see the GHG storage Act, section 13(a).

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 that only involves 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 GHG authority that is a GHG lease; and
(b) a 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 a GHG coordination arrangement for the lease while the GHG lease continues in force.

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

'This part imposes additional requirements for the following for which there is an overlapping GHG authority that is a GHG 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 plan or amendment must include a statement of how the effects on and the interests of the GHG tenure holder have or have not been considered having regard to the GHG assessment criteria.

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

'(2) Subsection (3) applies if the GHG tenure is a GHG lease.

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

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

'(1) This section applies if a GHG 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 GHG storage activities under an overlapping GHG authority for the petroleum tenure; and
(c) the overlapping GHG authority is a GHG tenure.

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

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

(a) the operator gives the GHG 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
Editor's note--
Section 392AG (Content requirements for GHG statement)
(b) the GHG 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 GHG 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 that includes provisions proposed by the GHG tenure holder, the operator must--

(a) give the GHG 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 392BO applies and a GHG tenure holder about the reasonableness of a provision proposed by the GHG 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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