OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT (SIGNIFICANT INCIDENT DIRECTIONS) BILL 2011

i Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident

Directions) Bill 2011 No. , 2011

Contents

1 Short

title

...........................................................................................

2 Commencement

.................................................................................

3 Schedule(s)

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Schedule 1--Amendments

Offshore Petroleum and Greenhouse Gas Storage Act 2006

Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident Directions)

Bill 2011 No. , 2011 1

A Bill for an Act to amend the Offshore Petroleum

and Greenhouse Gas Storage Act 2006, and for other

purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Offshore Petroleum and Greenhouse

Gas Storage Amendment (Significant Incident Directions) Act

2011.

2 Commencement

(1) Each provision of this Act specified in column 1 of the table

commences, or is taken to have commenced, in accordance with

column 2 of the table. Any other statement in column 2 has effect

according to its terms.

2 Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident

Directions) Bill 2011 No. , 2011

Commencement information

Column 1

Column 2

Column 3

Provision(s) Commencement

Date/Details

1. Sections 1 to 3

and anything in

this Act not

elsewhere covered

by this table

The day this Act receives the Royal Assent.

2. Schedule 1

The later of:

(a) the start of the day after this Act receives

the Royal Assent; and

(b) immediately after the commencement of

Parts 1 and 2 of Schedule 2 to the

Offshore Petroleum and Greenhouse Gas

Storage Amendment (National

Regulator) Act 2011.

However, the provision(s) do not commence

at all if the event mentioned in paragraph (b)

does not occur.

Note:

This table relates only to the provisions of this Act as originally

enacted. It will not be amended to deal with any later amendments of

this Act.

(2) Any information in column 3 of the table is not part of this Act.

Information may be inserted in this column, or information in it

may be edited, in any published version of this Act.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

Amendments Schedule 1

Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident Directions)

Bill 2011 No. , 2011 3

Schedule 1--Amendments

Offshore Petroleum and Greenhouse Gas Storage Act 2006

1 Section 7 (paragraphs (h), (ha) and (i) of the definition of

title)

Repeal the paragraphs, substitute:

(ga) when used in Chapter 5--has the meaning given by

section 519; or

(h) when used in section 574--has the meaning given by

subsection 574(1); or

(ha) when used in section 574A--has the meaning given by

subsection 574A(1); or

(i) when used in Division 2A of Part 6.2--has the meaning

given by subsection 576A(3); or

2 Section 7 (after paragraph (b) of the definition of title area)

Insert:

(ba) when used in Division 2A of Part 6.2--has the meaning

given by subsection 576A(3); or

3 Paragraph 569(8)(c)

Omit "or 574A", substitute ", 574A or 576B".

4 At the end of subsection 569(8)

Add:

Note 1:

A general direction may be given to a petroleum titleholder under

section 574 (by NOPSEMA) or 574A (by the responsible

Commonwealth Minister).

Note 2:

A direction may be given by NOPSEMA to a petroleum titleholder

under section 576B in relation to a significant offshore petroleum

incident in the petroleum title area.

5 Paragraph 572(7)(c)

After "574A", insert ", 576B".

6 At the end of subsection 572(7)

Add:

Schedule 1 Amendments

4 Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident

Directions) Bill 2011 No. , 2011

Note 1:

A general direction may be given to a petroleum titleholder under

section 574 (by NOPSEMA) or 574A (by the responsible

Commonwealth Minister).

Note 2:

A direction may be given by NOPSEMA to a petroleum titleholder

under section 576B in relation to a significant offshore petroleum

incident in the petroleum title area.

7 Section 573

After "other persons.", insert:

�

If there is a significant offshore petroleum incident in a

petroleum title area, NOPSEMA may give a specific direction

to the titleholder to deal with the escape of petroleum resulting

from the incident, whether within or outside the title area.

8 At the end of subsection 574(2)

Add:

Note 4:

A direction under this section also has no effect to the extent of any

inconsistency with a direction under section 576B (which relates to

significant offshore petroleum incidents): see subsection 576C(2).

9 At the end of subsection 574A(2)

Add:

Note 3:

For inconsistency between directions under this Division and

Division 2A (which relates to significant offshore petroleum

incidents), see subsection (12) of this section and subsection 576C(2).

10 After Division 2 of Part 6.2

Insert:

Amendments Schedule 1

Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident Directions)

Bill 2011 No. , 2011 5

Division 2A--Directions for significant offshore petroleum

incidents

576A Directions for significant offshore petroleum incidents--

definitions for Division 2A

Significant offshore petroleum incidents

(1) In this Division, a significant offshore petroleum incident is a

significant incident or occurrence that relates to any or all of the

following operations in an offshore area:

(a) petroleum exploration operations;

(b) petroleum recovery operations;

(d) operations relating to the preparation of petroleum for

transport;

(e) operations connected with the construction or operation of a

pipeline;

(f) operations relating to the decommissioning or removal of

structures, equipment or other items of property that have

been brought into an offshore area for or in connection with

any of the operations mentioned in paragraph (a), (b), (c), (d)

or (e).

Note:

For inquiries into significant offshore petroleum and greenhouse gas

incidents, see Part 9.10A.

(2) Paragraph (1)(f) does not, by implication, limit paragraph (1)(a),

(b), (c), (d) or (e).

Titles and title areas

(3) In this Division, the table has effect:

Titles and title areas

Item A

title is any of the following:

The title area for the title is ...

a petroleum exploration permit

the permit area.

a petroleum retention lease

the lease area.

a petroleum production licence

the licence area.

an infrastructure licence

the licence area.

Schedule 1 Amendments

6 Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident

Directions) Bill 2011 No. , 2011

Titles and title areas

Item A

title is any of the following:

The title area for the title is ...

a pipeline licence

the part of the offshore area in which

the pipeline is constructed.

(4) In this Division:

related title means a title mentioned in the table in subsection

572(1).

related title area, for a related title, means the title area for the

related title mentioned in the table in subsection 572(1).

related titleholder, for a related title, means the titleholder for the

related title mentioned in the table in subsection 572(1).

Note:

A related title, related title area or related titleholder may cover

petroleum or greenhouse gas operations.

576B Directions for significant offshore petroleum incidents--

NOPSEMA power to give directions

Power to give direction

(1) If a significant offshore petroleum incident has occurred in a title

area that has caused, or that might cause, an escape of petroleum,

NOPSEMA may, in accordance with this section, give a direction

by written notice to the registered holder of the title.

(2) The direction may require the registered holder of the title to do

any (or all) of the following within a reasonable period stated in the

direction:

(a) to take any action stated in the direction for the purpose of

any (or all) of the following:

(i) preventing the escape of petroleum;

(ii) eliminating the escape of petroleum;

(iii) mitigating the effects of the escape of petroleum;

(iv) managing the effects of the escape of petroleum;

(v) remediating the effects of the escape of petroleum;

(b) to take any other action stated in the direction in relation to

the escape of petroleum and its effects;

Amendments Schedule 1

Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident Directions)

Bill 2011 No. , 2011 7

escape of petroleum and its effects.

(3) The direction may require the registered holder of the title to take

an action (or not to take an action) mentioned in any (or all) of

paragraphs (2)(a), (b) and (c) in relation to the possible escape of

petroleum, or the possible effects of an escape of petroleum.

(4) For the purposes of subsection (2) or (3), the direction may prohibit

the doing of an action:

(a)

unconditionally;

(b) subject to conditions, including conditions requiring the

consent or approval of a person specified in the direction.

Action directed inside or outside of title area

(5) The direction may require the registered holder of the title to take

an action (or not to take an action) mentioned in subsection (2) or

(3) (or both) anywhere in the offshore area, whether within or

outside the title area.

(6) If the direction requires the registered holder of the title to take an

action in, or in relation to, a related title area, NOPSEMA must

give a copy of the direction to the related titleholder as soon as

practicable after the direction is given to the registered holder.

Standing or permanent directions

(7) NOPSEMA must not give a direction under this section of a

standing or permanent nature except with the approval of the Joint

Authority, but the validity of a direction is not affected by a breach

of this subsection.

Note 1:

See also section 576C, which provides for matters related to directions

made under this section.

Note 2:

Breach of a direction under this section is an offence under

section 576D.

Schedule 1 Amendments

8 Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident

Directions) Bill 2011 No. , 2011

576C Directions for significant offshore petroleum incidents--

related matters

Relationship with other directions and certain laws

(1) A direction under section 576B has effect, and must be complied

with, despite:

(a) any previous direction under section 576B; and

(b) any other direction under this Part (see sections 574 and

574A); and

(d) the applied provisions.

Note 1:

Under section 574, NOPSEMA may give a general direction to a

petroleum titleholder. Under section 574A, a general direction may be

given by the responsible Commonwealth Minister.

Note 2:

For applied provisions, see subsection 80(2).

Note 3:

A direction under section 576B also overrides the obligations of the

registered holder of the title under sections 569 (work practices) and

572 (structures, equipment and property): see subsections 569(8) and

572(7).

(2) If a direction under section 574 or 574A is inconsistent with a

direction under section 576B, the direction under section 574 or

574A has no effect to the extent of the inconsistency.

Former registered holders of titles

(3) A person to whom a direction has been given under section 576B

remains subject to the direction even if the person stops being the

registered holder of the title.

Codes of practice and standards

(4) A direction under section 576B may make provision in relation to a

matter by applying, adopting or incorporating (with or without

modification) a code of practice or standard contained in an

instrument as in force or existing at the time when the direction

takes effect, to the extent that the code of practice or standard is

relevant to that matter.

(5) To avoid doubt, subsection (4) applies to an instrument, whether

issued or made in Australia or outside Australia.

Amendments Schedule 1

Offshore Petroleum and Greenhouse Gas Storage Amendment (Significant Incident Directions)

Bill 2011 No. , 2011 9

(6) If a direction under section 576B makes provision in relation to a

matter by applying, adopting or incorporating (with or without

modification) a code of practice or standard, NOPSEMA must

ensure that the text of the code of practice or standard applied,

adopted or incorporated is published on NOPSEMA's website.

(7) Subsection (6) does not apply if the publication would infringe

Directions are not legislative instruments

(8) A direction made under section 576B is not a legislative

instrument.

576D Directions for significant offshore petroleum incidents--

compliance

A person commits an offence of strict liability if:

(a) the person is subject to a direction under section 576B; and

(b) the person engages in conduct; and

Penalty: 100 penalty units.

Note 1:

For strict liability, see section 6.1 of the Criminal Code.

Note 2:

NOPSEMA may do anything required to be done under a direction in

the event of a breach of the direction (see section 577).

Note 3:

It is a defence in a prosecution for an offence against this section if the

defendant proves that the defendant took all reasonable steps to

comply with the direction (see section 578).

11 At the end of section 780A

Add:

Note:

NOPSEMA may issue directions to petroleum titleholders in relation

to significant offshore petroleum incidents (other than those to which

subsection (9) relates): see Division 2A of Part 6.2.

Commonwealth of Australia Bills

OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE AMENDMENT (SIGNIFICANT INCIDENT DIRECTIONS) BILL 2011