PETROLEUM (SUBMERGED LANDS) AMENDMENT BILL 2005 Explanatory Statement

Northern Territory Explanatory Statements

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PETROLEUM (SUBMERGED LANDS) AMENDMENT BILL 2005

2005

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

MINISTER FOR PRIMARY INDUSTRIES AND FISHEREIS

NORTHERN TERRITORY PETROLEUM (SUBMERGED LANDS) AMENDMENT BILL 2005

SERIAL NO. 26

EXPLANATORY STATEMENT

GENERAL OUTLINE

The purpose of this Bill is to amend the Petroleum (Submerged Lands) Act (”the Act”) in response to changes made to the corresponding Commonwealth legislation, arising from the need to facilitate the development of the Greater Sunrise offshore oil and gas field in the Timor Sea.

The changes to the Act are minor and administrative in nature but are necessary so the Act remains consistent its corresponding Commonwealth legislation

The Act is amended in the following ways:
· insert in the definitions new terms that refer to the new jointly administered area of the Principal Northern Territory PSL area and the exempt portion of the Commonwealth Adjacent area, known as the Eastern Greater Sunrise area
· minor drafting changes confined the Part 1, Division 2, by deleting references to the jointly administered area as being the Commonwealth Adjacent area and substituting with the new name of the Principal Northern Territory PSL area.

The Act makes provision for the exploration and exploitation of petroleum resources in submerged lands adjacent to the cost of the Northern Territory. It applies to the coastal waters of the Territory from the mean low water mark seaward to the three nautical mile limit. The corresponding Commonwealth legislation, the Commonwealth Petroleum (Submerged Lands) Act applies to Australian waters beyond this point.

To the extent necessary, the Act should remain consistent with the corresponding Commonwealth legislation in order to retain a common regulatory regime applying to both jurisdictions.

The Commonwealth has amended its legislation following the Greater Sunrise Unitisation Agreement between Australian and the Republic of East Timor. The unitised area is an amalgamation of a small portion of two offshore areas that straddle the boundaries of the administrative areas of the Joint Petroleum Development Area (Timor/Australia) and the Commonwealth Adjacent Area.

These changes mean that the area of the offshore adjacent area that is the subject of joint Northern Territory and the Commonwealth administration is altered and the area is renamed as the Principal Northern Territory PSL Area. This means the part of the Commonwealth Adjacent area that is comprised of all that adjacent area, apart from that portion that is exempted and known as Eastern Greater Sunrise.

The offshore adjacent area is constitutionally Commonwealth jurisdiction and the joint administrative arrangements with the Territory represent a co-operative approach by the Commonwealth. However, in the event of a disagreement, the Commonwealth Minister’s view prevails.

NOTES ON CLAUSES

Clause 1. Short Title

This is a formal clause which provides for the citation of the Bill. The Bill when passed may be cited as the

Petroleum (Submerged Lands) Amendment Act 2005

Clause 2. Commencement

Once the amendments are passed they will only start once the Commonwealth commences it amendments dealing with the implementation of the Unitisation Agreement.

Clause 3. Principal Act Amended

Petroleum (Submerged Lands) Act.

Clause 4. Amendment of Part 1, Division 2 heading

Omits heading and substitutes with a new heading that reflects the new name of the offshore adjacent waters that the Northern Territory is involved in the joint administration with the Commonwealth.

Clause 5. Amendment of section 10 (Definitions)

Inserts two new terms in the definitions that reflect the new names to be used to describe different offshore areas. They are Eastern Greater Sunrise area; and the Principal Northern Territory PSL area.

Clause 6. Amendment of section 13 (Minister as Designated Authority)

Omits from section 13 the “Commonwealth adjacent area” and substitutes with the “Principal Northern Territory PSL area”.

Clause 7. Amendment of section 14 (Delegations under the Commonwealth Act).

Omits reference to “Commonwealth adjacent area” and substitutes with the “Principal Northern Territory PSL area”.

Clause 8. Amendment of section 15 (Public servants performing functions under the Commonwealth Act)

Omits form section 15 the reference to Commonwealth adjacent area and substitutes with “Principal Northern Territory PSL area.

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