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OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE ACT 2010 - SECT 31

Significant risk of a significant adverse impact—power of Minister to protect petroleum

    (1)     For the purposes of sections 410 and 768(2)(d), the question of whether there is a significant risk that any of the operations that are being, or could be, carried on under a greenhouse gas injection licence will have a significant adverse impact on—

        (a)     operations to recover petroleum; or

        (b)     the commercial viability of the recovery of petroleum

is to be determined in a manner ascertained in accordance with the regulations.

    (2)     A manner ascertained in accordance with regulations made for the purposes of subsection (1) must take into account—

        (a)     the probability, or range of probabilities, of the occurrence of the adverse impact; and

        (b)     the economic consequences of the adverse impact; and

        (c)     the economic consequences of the adverse impact relative to the potential economic value of the operations or recovery referred to in whichever of subsection (1)(a) or (b) is applicable.

    (3)     Subsection (2) does not limit the matters that may be taken into account.

    (4)     Subsections (1) and (2) have effect subject to subsections (5) and (6).

    (5)     For the purposes of sections 410 and 768(2)(d), an operation that could be carried on under a greenhouse gas injection licence (the injection licence operation ) will have an adverse impact on—

        (a)     operations to recover petroleum; or

        (b)     the commercial viability of the recovery of petroleum

if, and only if, the injection licence operation will result in—

        (c)     an increase in the capital costs (other than prescribed costs) of the recovery of the petroleum; or

        (d)     an increase in the operating costs (other than prescribed costs) of the recovery of the petroleum; or

        (e)     a reduction in the rate of recovery of the petroleum; or

        (f)     a reduction in the quantity of the petroleum that will be able to be recovered.

    (6)     For the purposes of sections 410 and 768(2)(d), if there is a risk that an operation that is being, or could be, carried on under a greenhouse gas injection licence (the injection licence operation ) will have an adverse impact on—

        (a)     operations to recover petroleum; or

        (b)     the commercial viability of the recovery of petroleum

then that risk is not to be treated as significant, and that adverse impact is not to be treated as significant, if the amount that, under the regulations, is taken to be the probability-weighted impact cost of the injection licence operation is less than the amount that, under the regulations, is taken to be the threshold amount.



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