Queensland Numbered Acts Queensland Numbered ActsAfter section 75I--
insert--
'(1) This part imposes an obligation on each 1923 Act petroleum tenure holder to do either of the following because of the taking of water necessarily taken as part of petroleum production under the tenure--
(a) take restoration measures in relation to particular water bores;
(b) compensate the owners of particular water bores.
'(2) Division 2 provides for when the obligation arises.
'(3) Divisions 3 and 4 provide for the identification of the bores through underground water impact and pre-closure reports required to be lodged by 1923 Act petroleum tenure holders.
'(4) Division 5 provides for reports by tenure holders to--
(a) monitor the taking of water necessarily taken as part of petroleum production; and
(b) assess and review underground water impact reports.
'(5) Division 6 provides for agreements for, and for the resolution of disputes about, complying with the obligation.
'(1) An existing Water Act bore, for a 1923 Act petroleum tenure, is a water bore as defined under the Water Act if--
(a) the taking of, or interference with, water from the bore is authorised under the Water Act; and
(b) if the Integrated Planning Act 1997 required a development approval under that Act in relation to the bore for operational work for the taking of, or interfering with, water under the Water Act--that approval has been granted; and
(c) the bore was in existence at the earlier of the following for the tenure--
(i) either--
(ii) the start of petroleum production for commercial purposes.
'(2) A replacement of a bore mentioned in subsection (1) to comply with the make good obligation is also an existing Water Act bore for the 1923 Act petroleum tenure.
'(1) An existing Water Act bore is unduly affected by the taking of water necessarily taken as part of petroleum production under a 1923 Act petroleum tenure if--
(a) the drop in the level of water in the bore because the taking of water necessarily taken as part of petroleum production under a 1923 Act petroleum tenure is more than the trigger threshold for aquifers in relation to which the taking is carried out; and
(b) the bore has an impaired capacity.
'(2) If the exceeding of the trigger threshold was caused by a combination of any of the following activities the existing water Act bore is unduly affected by each of the activities--
(a) the taking of water necessarily taken as part of petroleum production under 1 or more 1923 Act petroleum tenures;
(b) the exercise, under the 2004 Act, of underground water rights for 1 or more 2004 Act petroleum tenures.
'(1) An existing Water Act bore has an impaired capacity if--
(a) for a bore used for domestic purposes--it is no longer able to provide a reasonable supply of water for the domestic purpose required at its location; or
(b) for a bore used for stock purposes--there is a material reduction in the number of stock able to be watered from the bore, having regard to the stock carrying capacity of the land serviced by the bore; or
(c) for a bore from which the taking of or interference with water is authorised under a licence under the Water Act other than for domestic purposes or stock purposes--there is a material reduction in the pumping supply required to service the relevant enterprise or town water supply.
'(2) In this section--
domestic purposes includes irrigating a garden, not exceeding 0.25 ha, being a garden cultivated for domestic use and not for the sale, barter or exchange of goods produced in the garden.
stock purposes means watering stock of a number that would normally be depastured on the land on which the water is, or is to be used.
'Restoration measures, for an existing Water Act bore, means measures to--
(a) ensure the bore will no longer have an impaired capacity; or
(b) provide an alternative supply of water to the supply of water from the bore.
Examples of possible restoration measures--
deepening the bore
drilling a new bore
providing a supply of an equivalent amount of water of a suitable quality by piping it from an alternative source
'(1) This section applies if a 1923 Act petroleum tenure ends.
'(2) If the tenure was an authority to prospect and, under section 40, 1 the tenure holder became a lease holder, a reference in this part--
(a) to the 1923 Act petroleum tenure is a reference to the authority to prospect and the lease; and
(b) to the tenure holder includes a reference to the lease holder.
'(3) Otherwise, a reference in this part to the tenure holder includes a reference to the holder of the tenure immediately before it ended.
'(1) If the taking of water necessarily taken as part of petroleum production under a 1923 Act petroleum tenure unduly affects an existing Water Act bore, the holder must--
(a) within a reasonable period, take restoration measures to restore the supply of water to the owner of the bore; or
(b) compensate the owner for the bore being unduly affected.
'(2) If an existing Water Act bore is likely, after the 1923 Act petroleum tenure ends, to become unduly affected by the taking, the holder must, before the tenure ends, comply with subsection (1) as if the bore is unduly affected by the taking.2
'(3) However, subsection (2) does not apply if--
(a) the ending of the 1923 Act petroleum tenure happens under the 2004 Act, section 911;3 or
(b) the 1923 Act petroleum tenure was an authority to prospect and, under section 40, the tenure holder became a lease holder.
'(4) The obligations under subsections (1) and (2) are the make good obligation.
'(5) Despite subsections (1) and (2), the make good obligation does not apply for an existing Water Act bore if either of the following happened before the commencement of this section--
(a) the 1923 Act petroleum tenure has ended;
(b) the part of the area of the tenure on which the taking happened ceased to be part of the area of the tenure.
'(1) The make good obligation applies--
(a) whether the bore is inside or outside the area of the 1923 Act petroleum tenure; and
(b) even if the bore was first unduly affected by the taking of water necessarily taken as part of petroleum production under the tenure after it ends.
'(2) If the make good obligation under this Act or the 2004 Act applies to more than 1 1923 Act or 2004 Act petroleum tenure holder for the same existing Water Act bore, the obligations apply to each of them jointly and severally.
'(3) The make good obligation continues to apply despite the ending of the tenure.4
'(1) This subdivision provides for the fixing of a trigger threshold for aquifers in the area affected by the taking of water necessarily taken as part of petroleum production under a 1923 Act petroleum tenure.
'(2) The fixing of the trigger threshold allows the tenure holder to prepare an underground water impact report for the tenure.
'(1) The 1923 Act petroleum tenure holder may ask the chief executive what the trigger threshold is for the aquifers.
'(2) The chief executive must--
(a) if no trigger threshold already applies for the aquifers--fix a trigger threshold for the aquifers and tell the tenure holder what that trigger threshold is; or
(b) if, under section 75IL or the 2004 Act, section 253(2)(a), a trigger threshold already applies for the aquifers--tell the tenure holder what that trigger threshold is.
'(1) A trigger threshold fixed under section 75IJ(2)(a) must be the water level drop in the aquifers that the chief executive considers would be a level that causes a significant reduction in the maximum pumping rate or flow rate of the existing Water Act bores in the area affected by the taking of water necessarily taken as part of petroleum production.
'(2) In fixing the trigger threshold, the chief executive--
(a) must consider--
(i) the permeability and geometry of the aquifers; and
(ii) the water levels in the aquifers; and
(b) must allow the 1923 Act petroleum tenure holder a reasonable opportunity to make submissions about the trigger threshold proposed by the chief executive; and
(c) may ask the tenure holder to give the chief executive documents or information the chief executive reasonably requires to fix the trigger threshold.
'(3) If the request is not complied with the chief executive may fix the trigger threshold using the documents or information available to the chief executive.
'(1) This section applies if, under section 75IJ(2)(a) or the 2004 Act, section 253(2)(a),5 a trigger threshold has already been fixed for an aquifer in any part of the area affected by the taking of water necessarily taken as part of petroleum production under a 1923 Act petroleum tenure.
'(2) The trigger threshold applies for any aquifer in the area for the taking of water necessarily taken as part of petroleum production under any other 1923 Act petroleum tenure.
'(1) Each 1923 Act petroleum tenure holder must, on or before the relevant time, lodge an underground water impact report at the following office (the relevant office)--
(a) the office of the department for lodging underground water impact reports, as stated in a gazette notice by the chief executive; or
(b) if no office is gazetted under paragraph (a)--the office of the chief executive.
'(2) An underground water impact report--
(a) must comply with section 75IN; and
(b) may relate to the taking of water necessarily taken as part of petroleum production under 1 or more 1923 Act or 2004 Act petroleum tenures, held by the same person, or by different persons.
'(3) In this section--
relevant time means the earlier of any of the following--
(a) 20 business days after the end of the first year of--
(i) for a lease--the start of petroleum production under the lease for commercial purposes; or
(ii) for an authority to prospect--the approval, under the instrument for the authority, to produce petroleum;
(b) for a lease--when the lease holder is, under the 2004 Act, section 599,6 first required to lodge a royalty return for petroleum production in the area of the lease.
'(1) Subject to section 75IO, an underground water impact report must include each of the following--
(a) the trigger threshold for aquifers in the area affected by the taking of water necessarily taken as part of petroleum production under the 1923 Act petroleum tenure;
(b) details of an underground water flow model prepared by the holder to predict the drop in the water level, because of the taking, in aquifers predicted by the holder to be affected by the taking;
(c) the area and aquifers predicted by the holder to be affected by the taking;
(d) details of the existing Water Act bores predicted by the holder to be unduly affected by the taking, either alone or in combination with--
(i) the taking of water necessarily taken as part of petroleum production under another 1923 Act petroleum tenure; or
(ii) the exercise of underground water rights under the 2004 Act for a 2004 Act petroleum tenure;
(e) an estimate of when each of the bores will become unduly affected;
(f) details of a monitoring program proposed to be carried out by the holder to monitor the impact of the taking;
(g) other information or matters prescribed under a regulation.
'(2) The underground water flow model must comply with any requirements prescribed under a regulation.
'(3) If the underground water impact report is for a combination of any of the following activities carried out by different persons, it may state the liability, as between the persons, to comply with the make good obligation under this Act or the 2004 Act for each existing Water Act bore identified in the report if it is, or becomes, unduly affected--
(a) the taking of water necessarily taken as part of petroleum production under 1 or more 1923 Act petroleum tenures;
(b) the exercise, under the 2004 Act, of the underground water rights for 1 or more 2004 Act petroleum tenures.
'(4) However, a statement under subsection (3) does not affect the tenure holders' joint and several liability under section 75IH for the obligation.
'Section 75IN(1)(b) need not be complied with if the chief executive is satisfied--
(a) that, because of the need for data to be collected after the relevant time under section 75IM for lodging the report, it is not reasonably possible for the holder to prepare an appropriate underground water flow model before that time; or
(b) the report shows each of the following matters and, that because of the matters, the existing Water Act bores will not be unduly affected by the taking of water necessarily taken as part of petroleum production under the 1923 Act petroleum tenure--
(i) if there are existing Water Act bores in an aquifer other than the source aquifer for the taking--the source aquifer is not hydraulically connected to that aquifer;
(ii) any existing Water Act bore in the source aquifer is sufficiently separated in distance from the place where the taking is to happen.
'(1) If an underground water impact report (the original report) does not include details of an underground water flow model prepared by the 1923 Act petroleum tenure holder, the chief executive may require the tenure holder to, within a stated reasonable period--
(a) prepare the model; and
(b) lodge an amended underground water impact report that includes details of the model.
'(2) Subsection (1) applies despite any conclusion stated in the original report.
'(3) If the chief executive is satisfied an underground water impact report (also the original report) is inadequate in a material particular, the chief executive may require the 1923 Act petroleum tenure holder who lodged the original report to lodge an amended underground water impact report that--
(a) amends the original report in a stated way; or
(b) includes stated information or material.
Example of a possible material inadequacy--
In the circumstances, it was appropriate for the water monitoring program detailed in the report to include the construction of a water observation bore. The construction of the bore is not provided for in the report.
'(4) A requirement under this section must be made by a notice to the 1923 Act petroleum tenure holder who lodged the report.
'(5) The notice must state a reasonable period within which the requirement must be complied with.
'(6) An amended underground water impact report must be lodged at the same office at which the original report must be lodged.
'(7) A 1923 Act petroleum tenure holder of whom a requirement under this section has been made must comply with the requirement.
'(8) In this section--
underground water impact report includes an underground water impact report amended under this section.
'(1) The chief executive must decide whether to accept or reject the underground water impact report.
'(2) However, the chief executive may reject the report only if the chief executive is satisfied it is inadequate in a material particular.
'(3) On rejection of the report, the chief executive must give the 1923 Act petroleum tenure holder an information notice about the decision to reject the report.
'(4) The information notice must--
(a) require the tenure holder to lodge, under section 75IM, 7 another underground water impact report; and
(b) state a reasonable period for lodging the other report.
'(5) The tenure holder must comply with the requirement.
'(1) A 1923 Act petroleum tenure holder must, within 40 business days before the earliest of the following times, lodge a report (a pre-closure report) for the tenure that complies with section 75IS--
(a) 1 year before the end of the term of the tenure other than under the 2004 Act, section 911;8
(b) when the holder makes a surrender application for the tenure;
(c) an earlier time stated in a notice from the chief executive to the holder.
'(2) However, if at any time before the last time by which the holder can, under this Act, apply to renew the tenure, the holder gives the chief executive a written declaration stating that the holder intends to apply to renew the tenure, subsection (1)--
(a) only applies if--
(i) the holder does not, before that time, make a renewal application for the tenure; or
(ii) a renewal application for the tenure is rejected; and
(b) does not apply if a renewal application for the tenure is granted, unless--
(i) the holder makes a surrender application for the tenure; or
(ii) the chief executive gives the holder a notice stating that the holder must, at a stated time, lodge a pre-closure report.
'(3) The report must be lodged at--
(a) the office of the department for lodging pre-closure reports, as stated in a gazette notice by the chief executive; or
(b) if no office is gazetted under paragraph (a)--the office of the chief executive.
'The pre-closure report must state each of the following--
(a) the existing Water Act bores that, after the 1923 Act petroleum tenure ends, the tenure holder predicts may become unduly affected by the taking of water necessarily taken as part of petroleum production under the tenure, during its term;
(b) an estimate of when each of the bores will become unduly affected;
(c) what steps have been taken to comply with the make good obligation in relation to the bores;
(d) the information or matters prescribed under a regulation.
'(1) This section applies if, before the end of the 1923 Act petroleum tenure, the chief executive considers that the effect of the taking of water necessarily taken as part of petroleum production under the tenure is materially different to the effect predicted in the pre-closure report.
'(2) The chief executive may require the tenure holder to lodge, as required under section 75IR, an amended pre-closure report stating a prediction under section 75IS(a) that is appropriate.
'(3) A requirement under this section must include, or be accompanied by, an information notice about the decision to make the requirement.
'(4) The information notice must state a reasonable period for lodging the amended report.
'(1) This section applies from the end of the 1923 Act petroleum tenure if the former 1923 Act petroleum tenure holder--
(a) was, under section 75IR, required to lodge a pre-closure report; and
(b) has lodged a pre-closure report that complies with section 75IS; and
(c) has complied with any requirement under section 75IT.
'(2) The existing Water Act bores stated in the pre-closure report are, for section 75IG(2), 9 taken to be the only existing Water Act bores that are likely, after the 1923 Act petroleum tenure ends, to become unduly affected by the taking of water necessarily taken as part of petroleum production under the tenure.
'(1) This division requires the tenure holder to lodge monitoring reports and review reports.
'(2) The purpose of a monitoring report is to monitor the effect of the taking of water necessarily taken as part of petroleum production for a 1923 Act petroleum tenure.
'(3) The purposes of a review report are to--
(a) compare the effect of the taking with the predicted effect in the holder's relevant underground water impact report to show whether the report continues to be appropriate; and
(b) amend the underground water impact report to reflect the results of the comparison.
'(1) Subject to sections 75IZ and 75IZA, the 1923 Act petroleum tenure holder must when the holder is, under section 76F,10 required to lodge an annual report for the tenure, lodge a monitoring report for the tenure.
'(2) The monitoring report must--
(a) report on the monitoring program provided for in the tenure holder's impact report; and
(b) state the information or matters prescribed under a regulation; and
(c) be included in the annual report, or lodged together with it at--
(i) the office of the department for lodging monitoring reports, as stated in a gazette notice by the chief executive; or
(ii) if no office is gazetted under subparagraph (i)--the office of the chief executive.
'(1) Subject to sections 75IZ and 75IZA, the 1923 Act petroleum tenure holder must lodge review reports about each underground water impact report by the holder before each of the following--
(a) the first anniversary from when the underground water impact report was accepted by the chief executive;
(b) the third anniversary of the acceptance;
(c) the fifth anniversary of the acceptance;
(d) the end of each interval of 5 years after the fifth anniversary.
'(2) The review reports must--
(a) state the information or matters prescribed under a regulation; and
(b) amend the underground water impact report in a way that is consistent with the review report; and
(c) be included in the annual report that under section 76F, 11 must be lodged at the nearest point in time to when the review reports must be lodged under subsection (1).
'(3) For working out the intervals, any transition, under section 40, 12 of an authority to prospect to a lease must be disregarded.
'(4) The tenure holder may, at any time, lodge a review report at the office at which annual reports must, under section 76F, 13 be lodged.
'On the lodgment of a review report that complies with section 75IX--
(a) the underground water impact report to which it relates is taken to have been amended as provided in the review report; and
(b) if the underground water impact report conflicts with a matter provided for in the review report, the underground water impact report is taken to have been amended to agree with the review report.
'(1) The chief executive may, by notice to the 1923 Act petroleum tenure holder, change the frequency required under this division for the lodging of monitoring reports or review reports.
'(2) However, the frequency may be changed for review reports only if a review report shows that the effect of the taking of water necessarily taken as part of petroleum production under the tenure on existing Water Act bores is materially different to the effect predicted in the holder's underground water impact report.
'(1) The chief executive may, by notice to the 1923 Act petroleum tenure holder, change the day on which monitoring reports or review reports must be lodged under this division.
'(2) However, the changed day must not be more than 1 year after the day the report was otherwise required to be lodged.
'(1) This section applies if the chief executive considers that a review report does not achieve a purpose of a review report, as stated in section 75IV(3).
'(2) The chief executive may require the holder to lodge at the following office an amended review report that does achieve all of the purposes--
(a) the office of the department for lodging amended review reports, as stated in a gazette notice by the chief executive;
(b) if no office is gazetted under paragraph (a)--the office of the chief executive.
'(3) A requirement under this section must be by a notice that includes an information notice about the decision to make the requirement.
'(4) The information notice must state a reasonable period for lodging the amended report.
'(5) A 1923 Act petroleum tenure holder of whom a requirement under this section has been made must comply with the requirement.
'(6) In this section--
review report includes a review report amended under this section.
'(1) A 1923 Act petroleum tenure holder must make reasonable attempts to negotiate an agreement (a make good agreement) with an owner of an existing Water Act bore about how the make good obligation for the bore is to be complied with.
'(2) A make good agreement may be included in a compensation agreement under part 6K14 between the tenure holder and the owner.
'This subdivision applies if 1 or more 1923 Act or 2004 Act petroleum tenure holders to whom the make good obligation under this Act or the 2004 Act applies in relation to an existing Water Act bore and the owner of the bore can not agree about how the obligation is to be complied with.
'(1) Any of the tenure holders or the owner may apply to the tribunal for it to decide how the obligation must be complied with.
'(2) If the obligation arose because of a combination of any of the following activities carried out by different persons each of them must be a party to the application--
(a) the taking of water necessarily taken as part of petroleum production under another 1923 Act petroleum tenure;
(b) the exercise of underground water rights under the 2004 Act for a 2004 Act petroleum tenure.
'(1) The tribunal may decide how the obligation must be complied with.
'(2) However--
(a) the tribunal may make the decision only to the extent the obligation is not the subject of a make good or other agreement between the tenure holder and the owner; and
(b) the tribunal may decide the owner must be compensated only if the tribunal considers it is not reasonably feasible to comply with the obligation by the taking of any restoration measures.
'(3) The tribunal may make any order it considers appropriate to meet or enforce its decision on the application.
'(4) If--
(a) the obligation arose because of a combination of any of the following--
(i) the taking of water necessarily taken as part of petroleum production under 1 or more 1923 Act petroleum tenures;
(ii) the exercise, under the 2004 Act, of underground water rights for 1 or more 2004 Act petroleum tenures; and
(b) the tenures are held by different persons; and
(c) the tenure holders have not agreed between themselves about how much each must contribute to comply with the obligation;
the tribunal may decide their contributions.
'(5) However, a decision under subsection (4) does not affect the tenure holders' joint and several liability under section 75IH15 for the obligation.
'(1) This section applies if the tribunal decides that the obligation is to be complied with by compensation to the owner.
'(2) The compensation may only be for--
(a) diminution of any of the following because of the taking of water necessarily taken as part of petroleum production--
(i) the value of the owner's land on which the bore is located;
(ii) the use the owner has made, or may make, of water from the existing Water Act bore; or
(b) any cost or loss the owner suffers that is caused by the impaired capacity of the bore.
Example of a possible cost--
the cost of transporting water to the land from an alternative water source
'(3) In deciding the amount of the compensation, the tribunal may consider any restoration measures, successful or otherwise, taken or attempted by the tenure holder.
'(4) The tribunal must, as far as practicable, decide the compensation at the same time as it makes any decision about any compensation liability that the tenure holder has to the owner under part 6K.16
'(1) A make good agreement or a decision by the tribunal under subdivision 2 is for the benefit of, and is taken to have been agreed to or decided for and is binding on--
(a) the owner of the relevant existing Water Act bore; and
(b) each relevant 1923 Act or 2004 Act petroleum tenure holder; and
(c) each of their successors and assigns, including successors and assigns of the relevant 1923 Act petroleum tenure.17
'(2) Subsection (1) is subject to section 75IZI.
'(1) This section applies if, since the making of a make good agreement or a decision by the tribunal under subdivision 2 (the original agreement or decision), there has been a material change in circumstances (the change).
'(2) Any person mentioned in section 75IZH may apply to the tribunal for it to review the original agreement or decision.
'(3) In carrying out the review, the tribunal may review the agreement or decision only to the extent it is affected by the change.
'(4) The tribunal may, after carrying out the review, decide to confirm the original agreement or decision or amend it in a way the tribunal considers appropriate.
'(5) If the decision is to amend the original agreement or decision, the original agreement or decision, as amended under the decision, is for this Act, taken to be the original agreement or decision.
'(1) This section applies if a 1923 Act petroleum tenure holder has not complied with the make good obligation in relation to an existing Water Act bore and the tenure has ended.
'(2) The former tenure holder may enter the land on which the bore is located to comply with the make good obligation.
'(3) Parts 6H, 6I and 6K,18 apply to the former tenure holder as if--
(a) the tenure were still in force; and
(b) the former tenure holder is its holder; and
(c) the land is in the area of the tenure; and
(d) compliance with the make good obligation is an authorised activity for the tenure.
'(1) The chief executive must, before deciding any matter under this part, seek advice about the matter from the Water Act regulator.
'(2) A failure to comply with subsection (1) does not invalidate or otherwise affect the decision.'.