Queensland Numbered Acts Queensland Numbered ActsChapter 2—
insert—
'An Australian market supply condition, for land, is a condition under which—
(a) gas produced from the land must not be supplied other than to the Australian market; and
(b) any contract or other arrangement for the supply of the gas must include a condition that the gas must not be further supplied other than to the Australian market.
'Australian market, in relation to the supply of gas, means an entity or entities that will—
(a) consume the gas within Australia; or
(b) supply the gas to an entity or entities that will consume the gas within Australia.
'(1) The holder of a petroleum tenure for PGPLR land—
(a) must not supply gas produced from the land other than to the Australian market; and
(b) must include in any contract or other arrangement for the supply of the gas a condition that the gas must not be further supplied other than to the Australian market.
Maximum penalty—1000 penalty units.
'(2) However, if the application of the Australian market supply condition to the land has been suspended under section 175G(1) for a stated period, subsection (1) does not apply to the holder for the stated period.
'(3) An entity to which gas produced from PGPLR land is supplied—
(a) must not further supply the gas other than to the Australian market; and
(b) must include in any contract or other arrangement for the supply of the gas a condition that the gas must not be further supplied other than to the Australian market.
Maximum penalty—1000 penalty units.
'(4) However, if the entity holds an exemption under section 175G(2) for a stated period in relation to the land, subsection (3) does not apply to the entity, for the stated period, in relation to gas produced from the land.
'(5) Subsection (3)(a) applies subject to section 175D.
'(1) Subsection (2) applies if—
(a) an entity is a consumer of gas; and
(b) because of technical or operational problems, the entity is unable to consume gas produced from PGPLR land and supplied to the entity; and
(c) the entity has taken all reasonable steps to supply the gas to the Australian market but the entity considers it is not commercially viable to do so; and
(d) the entity supplies the gas other than to the Australian market; and
(e) the entity gives notice of the supply of the gas, the reason for the supply and the date the technical or operational problem arose, to the chief executive within 5 days after starting to supply the gas.
Example of a technical or operational problem for paragraph (b)—
the failure of the entity's plant or machinery
'(2) Section 175C(3)(a) does not apply to the entity for 30 days after the technical or operational problem arises.
'(1) The holder of a petroleum tenure for PGPLR land may apply to the Minister for a suspension, for a stated period, of the application of the Australian market supply condition to the land if—
(a) market analysis indicates that, during the stated period, sufficient gas may be produced from existing and proposed petroleum tenures in the State to supply both the Australian market and export demand; or
(b) the holder has taken all reasonable steps to supply the gas produced from the PGPLR land to the Australian market but it is not commercially viable to do so.
'(2) An entity to which gas produced from PGPLR land is supplied may apply to the chief executive for an exemption, for a stated period, from section 175C(3) in relation to the land if—
(a) market analysis indicates that, during the stated period, sufficient gas may be produced from existing and proposed petroleum tenures in the State to supply both the Australian market and export demand; or
(b) the entity has taken all reasonable steps to supply the gas produced from the PGPLR land to the Australian market but it is not commercially viable to do so.
'In assessing commercial viability of the supply of gas produced from PGPLR land for section 175E, the Minister or the chief executive may have regard to the following—
(a) whether the rate of return on the investment of money required to produce gas from the land and supply it to the Australian market at least meets the rate of return considered acceptable by a reasonable petroleum producer or a lender to a petroleum producer;
(b) the market conditions at the time the application is made under section 175E including, for example, access to markets, the expected duration of a contract or other arrangement for the supply of the gas, the price likely to be paid for the gas and the certainty and timing of market opportunities;
(c) whether, if commercial viability is dependent on the applicant reaching agreement with another entity or using the other entity's facilities or technology, the applicant can complete the agreement or use the facilities or technology on terms the applicant considers provide a reasonable rate of return for the applicant.
'(1) The Minister may grant an application mentioned in section 175E(1) only if the Minister is satisfied about a matter mentioned in section 175E(1)(a) or (b).
'(2) The chief executive may grant an application mentioned in section 175E(2) only if the chief executive is satisfied about a matter mentioned in section 175E(2)(a) or (b).
'(3) If the Minister or chief executive refuses to grant an application, the applicant must be given an information notice for the decision.
'(1) This section applies to the following (each a selling entity)—
(a) the holder of a petroleum lease for PGPLR land who supplies gas produced from the land;
(b) another entity that supplies gas produced from PGPLR land.
'(2) A selling entity must, for the period and in the way prescribed under a regulation, keep the records prescribed under a regulation for each supply by the selling entity of gas produced from PGPLR land.
Maximum penalty—500 penalty units.
'(3) If the chief executive gives a selling entity a notice asking for a copy of a record kept under subsection (2), the selling entity must give a copy of the record to the chief executive within the reasonable period stated in the notice.
Maximum penalty—500 penalty units.
'(1) This section applies if, on the application of the chief executive, the District Court is satisfied—
(a) the holder of a petroleum tenure for PGPLR land is supplying gas produced from the land other than to the Australian market, contrary to section 175C(1)(a); or
(b) an entity to which gas produced from PGPLR land was supplied is further supplying the gas other than to the Australian market, contrary to section 175C(3)(a).
'(2) The court may make either or both of the following orders—
(a) an order granting an injunction, on terms the court considers appropriate, restraining the holder or other entity from supplying the gas other than to the Australian market;
(b) another order the court considers appropriate.
'(3) The court may decide not to make an order under this section in relation to the holder if the court considers that section 790(1)(b) or (c) provides a more appropriate way of dealing with the issue.'.