New South Wales Consolidated Acts

PETROLEUM (ONSHORE) ACT 1991 - SECT 22

22 Cancellation or operational suspension of titles

(1) A petroleum title may be cancelled by the Minister if its holder, at any time during the term of the title:

(a) fails to fulfil or contravenes any of the conditions of the title, or

(b) fails to use the land comprised in the title in good faith for the purposes for which it has been granted, or

(c) uses the land for a purpose other than that for which the title has been granted.

(2) A petroleum title may be cancelled either wholly or in part by the Minister on the written request of the holder of the title.

(2AA) A request for cancellation of a petroleum title may be withdrawn by means of a written notice of withdrawal signed by the holder of the title and lodged with the Director-General. The request ceases to have effect when the notice of withdrawal is lodged.

(2A) The Minister may refuse to cancel a title in whole or in part unless:

(a) all data and reports due under the regulations have been submitted, and

(b) all data gathered, and operations carried on, during any period not covered in any such report are made the subject of a full report submitted to the Minister.

(3) If during the term of any petroleum title any part of the land comprised in the title is required for any public purpose, the Minister may, on one month’s notice given by the Minister to the holder of the title, cancel the title so far as it relates to the relevant part of the land, either with or without restrictions as to depth.

(3A) The Minister may suspend all or any specified operations under a petroleum title until further notice if the holder of the title contravenes:

(a) a requirement under this Act to pay royalty, or to give or maintain security for the performance of the holder’s obligations under the title, or

(b) any condition of the title that is identified in the title as a condition related to environmental management.

(4) Cancellation of, or suspension of operations under, a petroleum title takes effect on the date on which written notice of the cancellation or suspension concerned is served on the holder of the title, or on such later date as is specified in the notice.

(4A) Notice of a cancellation of a petroleum title is to be published in the Gazette as soon as practicable after the cancellation takes effect.

(5) No compensation is payable by the Crown for or in respect of the cancellation of, or a suspension of operations under, a petroleum title.

(6) Before cancelling a title on a ground referred to in subsection (1), or suspending operations under a title, the Minister:

(a) must cause written notice of the proposed cancellation or suspension, and of the grounds of the proposed cancellation or suspension, to be served on the holder of the title, and

(b) must give the holder of the title a reasonable opportunity to make representations with respect to the proposed cancellation or suspension, and

(c) must take any such representations into consideration.

(7) A suspension under this section is revoked on the date on which written notice from the Minister is served on the holder of the affected petroleum title or on such later date as is specified in the notice.

(8) While any operations under a petroleum title are suspended, the title confers no right on its holder to carry out the operations concerned.