Commonwealth Numbered Acts

PETROLEUM EXCISE (PRICES) AMENDMENT ACT 1997 No. 79, 1997 - SCHEDULE 1

SCHEDULE 1-AMENDMENT OF THE PETROLEUM EXCISE (PRICES) ACT 1987 1 Subsection
4(1) Insert:
limited production area means a production area that is declared to be a
limited production area under subsection 6(1B). 2 Subsection 4(1) Insert:
production area means a production area within the meaning of section 5B of
the Excise Tariff Act 1921:

   (a)  from which stabilised crude petroleum oil is obtained; and

   (b)  which is prescribed to be the whole or part of an oil producing
        region. 3 Subsection 4(1) (definition of reference price) Repeal the
        definition. 4 Subsection 4(1) (at the end of paragraphs (aa) and (a)
        of the definition of reviewable decision) Add "or". 5 Subsection 4(1)
        (after paragraph (aa) of the definition of reviewable decision)
        Insert:

   (ab) a decision under subsection 6(1B) refusing to declare a production
        area to be a limited production area; or

   (ac) a decision under subsection 6(1E) to revoke a declaration that a
        production area is a limited production area; or 6 Section 5 Repeal
        the section. 7 After subsection 6(1) Insert:

(1A) The information prescribed for the purposes of subsection (1) may differ
according to whether or not the transaction entered into by the oil producer
relates to excisable crude petroleum oil produced from a production area while
that area is declared to be a limited production area.

(1B) If, in respect of excisable crude petroleum oil produced by an oil
producer from a particular production area:

   (a)  the volume of that oil entered for home consumption before the end of
        each of 3 consecutive months (whether in the same financial year or
        not) is less than 80% of the free volume of excisable crude petroleum
        oil in respect of that month, worked out in accordance with subsection
        (1G); and

   (b)  the Minister is satisfied that the volume of that oil likely to be
        entered for home consumption before the end of any future month is
        unlikely, having regard to production statistics and any other
        relevant factor known to the Minister, to exceed 80% of the free
        volume of that oil in respect of that future month, worked out in
        accordance with subsection (1G); the Minister may declare in writing
        that production area to be a limited production area and, if the
        Minister does so, he or she must notify the oil producer concerned of
        that declaration.

(1C) If, in respect of excisable crude petroleum oil produced by an oil
producer from a particular production area:

   (a)  paragraph (1B)(a) applies in respect of any period of 3 consecutive
        months; but

   (b)  the Minister does not declare that production area to be a limited
        production area within 15 days after the end of that period; the
        Minister is taken to have refused, under subsection (1B), to make that
        declaration.

(1D) If, because the Minister does not declare a production area to be a
limited production area within 15 days after the end of a period of 3
consecutive months, the Minister is taken, under subsection (1C), to have
refused to make that declaration:

   (a)  that subsection does not prevent the Minister making such a
        declaration, in accordance with subsection (1B), at the end of any
        period of 3 consecutive months to which paragraph (1B)(a) applies (a
        subsequent period) that ends after that first-mentioned period; but

   (b)  if the Minister does not, within 15 days after the end of a subsequent
        period, make such a declaration, the Minister is again taken to have
        refused, under subsection (1B), to make such a declaration.

(1E) If:

   (a)  a particular production area has been declared to be a limited
        production area; and

   (b)  at any time after the declaration, the volume of excisable crude
        petroleum oil produced in that area and entered for home consumption
        exceeds the free volume of that oil in respect of that month, worked
        out in accordance with subsection (1G); then:

   (c)  the Minister must, by written notice given to the oil producer
        concerned, revoke the declaration; and

   (d)  the producer must give to the Minister, in respect of all excisable
        crude petroleum oil produced in that area and entered for home
        consumption after the making of the declaration, the information that,
        but for the making of the declaration, would have been required in
        respect of each transaction concerning that oil.

(1F) The information required to be given to the Minister under subsection
(1E), or particular parts of that information, must be given to the Minister:

   (a)  unless the Minister otherwise indicates in the notice revoking the
        declaration-in the form specified for the purpose of subsection (2);
        and

   (b)  within a time or times specified by the Minister in that notice.

(1G) For the purposes of this section, the free volume of excisable crude
petroleum oil that is entered for home consumption before the end of a month
is the maximum volume of such oil that, if entered for home consumption before
the end of that month would, under section 6B, 6C or 6D of the Excise Tariff
Act 1921, be a volume of oil to which no notional duty was applicable. Note:
Subsection (4) of section 6B, 6C or 6D of the Excise Tariff Act 1921
specifies, among other things, the minimum volume of oil to which notional
duty becomes applicable. The effect of that subsection is modified by
subsection (9) of each of those sections. 8 After subsection 7(2) Insert:

(2A) Nothing in this section implies that the Minister, or a person authorised
by the Minister to exercise the Minister's powers under this section, cannot
determine an interim VOLWARE price for a month and an oil producing region at
any time during the month concerned, whether or not there is available at that
time any information concerning the prices for which excisable crude petroleum
oil obtained from that region and entered for home consumption during that
month has been sold, or is likely to be sold. 9 After subsection 7(3) Insert:

(3A) In spite of subsections (2) and (3), neither the Minister nor a person
authorised by the Minister to exercise the Minister's powers under this
section is required to determine an interim VOLWARE price, or a final VOLWARE
price, in respect of an oil producing region and a month if, at all times
during that month:

   (a)  if the region consists of a single production area-there is in force a
        declaration under subsection 6(1B) that that area is a limited
        production area; or

   (b)  if the region consists of 2 or more production areas-there are in
        force declarations under subsection 6(1B) that each of those areas is
        a limited production area.

(3B) Nothing in subsection (3A) affects the obligation of the Minister or of a
person authorised by the Minister to exercise the Minister's powers under this
section to determine an interim VOLWARE price, or a final VOLWARE price, in
respect of an oil producing region and a month if a declaration under
subsection 6(1B) relating to a production area in that region that was in
force during that month is subsequently revoked. 10 Paragraph 8(a) Omit
"Comptroller", substitute "CEO". 11 Saving (1) The
Petroleum Excise (Prices) Act 1987 as in force immediately before the
commencement day continues to apply in relation to excisable crude petroleum
oil obtained from an oil producing region and entered for home consumption
during a month occurring before that day.

(2) In this item:
commencement day means the day on which this Act commences.
excisable crude petroleum oil, oil producing region and month have the same
meanings as in subsection 4(1) of the Petroleum Excise (Prices) Act 1987 as in
force immediately before the commencement day.

(Minister's second reading speech made in-
House of Representatives on 26 March 1997
Senate on 15 May 1997)