Queensland Numbered Acts Queensland Numbered ActsSection 591--
omit, insert--
'(1) Petroleum produced on or after 31 December 2004 is exempt from the petroleum royalty if the Minister is satisfied--
(a) the petroleum was unavoidably lost before it could be measured; or
(b) the petroleum was used--
(i) if it was produced under a petroleum tenure or 1923 Act petroleum tenure--in the production of petroleum from that tenure; or
(ii) if the petroleum is coal seam gas--for mining the coal that produced the gas; or
(c) that, before the petroleum was produced in the State, it was produced outside the State and injected or reinjected into a natural underground reservoir in the State; or
(d) the petroleum is petroleum on which petroleum royalty has already been paid; or
(e) the petroleum was flared or vented as part of testing for the presence of petroleum during the drilling of a well.
'(2) However--
(a) subsection (1) ceases to apply if, under chapter 2, part 6, division 3,31 the petroleum becomes the property of the State; and
(b) subsection (1)(c) does not apply if, after the petroleum royalty was paid, property in the petroleum is taken to have passed to the State under chapter 2, part 6, division 3.
'(3) Despite subsection (1)(b)(ii), if the first underground mining of coal in a mining lease commenced before 31 December 2004, petroleum produced on the mining lease and used beneficially for mining under the mining lease is exempt from petroleum royalty.
'(4) However, subsection (5) applies if the petroleum mentioned in subsection (1)(b)(ii) or subsection (3) is used to generate electricity that is--
(a) partly used for mining under the mining lease; and
(b) partly used for another purpose.
'(5) Subsection (1)(b)(ii) and subsection (3) apply only to the proportion of the petroleum that is equivalent to the proportion of the electricity generated from the petroleum that is used for mining under the mining lease.
'(6) In this section--
petroleum tenure includes a 1923 Act petroleum tenure.'.