PETROLEUM (SUBMERGED LANDS) AMENDMENT BILL 2004 Second Reading Speech

Northern Territory Second Reading Speeches

PETROLEUM (SUBMERGED LANDS) AMENDMENT BILL 2004

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Bill presented and read a first time.

Mr VATSKALIS (Mines and Energy): Madam Speaker, I move that the bill be now read a second time.

The main purpose of this bill is to mirror amending provisions in the Commonwealth Petroleum (Submerged Lands) Act 1967, allowing for a single National Offshore Petroleum Safety Authority. This authority is expected to provide a more efficient offshore petroleum safety administration regime.

The Northern Territory Petroleum (Submerged Lands) Act applies to the coast line of the Northern Territory at the mean low water marks seaward to a three nautical mile limit. This area is referred to as the Territory’s [inaudible] area. The corresponding Commonwealth act applies to Australian waters outside this.

The offshore petroleum industry is a major contributor to the economy and to domestic gas supplies in Australia. The industry also supports thousands of jobs. Over the past 25 years, the petroleum legislation has evolved. This evolution has assisted in ensuring security of oil and gas supplies and, as part of this, safety has been paramount. Safety is not only for those working in the industry, but also the general public.

Offshore safety is regulated according to whether the facility lies in Commonwealth or state or territory adjacent waters. Operators in several jurisdictions may be subject to two or more regulatory regimes. In 2001, the Commonwealth prepared a report on Offshore Safety, which found that the current system of petroleum regulation was inadequate.

[inaudible] limitations, overlapping acts and inconsistent application between Commonwealth and state jurisdictions. The Commonwealth responded to the report by initiating the creation of a National Offshore Petroleum Safety Authority, commonly referred to as NOPSA. NOPSA will regulate occupational health and safety matters on offshore petroleum facilities in both Commonwealth and territory waters.

The industry fully supported this because it was subject to different and, at times, overlapping sets of legal documents between Commonwealth and Territory laws. The Commonwealth has already passed a legislation to enable the authority to undertake regulatory activities in Commonwealth waters and to provide the safety authority with the ability to fully recover the cost of its operations through industry fees and levies.

With the offshore constitutional settlement in 1967, the Commonwealth, states and Northern Territory agreed to, as far as practicable, to administer the exploration and exploitation of petroleum resources with common principles and practices.

This obligation requires the Territory to enact legislation to mirror the legislative changes made by the Commonwealth, to enable the safety authority to carry out its occupational health and safety role in the Territory’s adjacent area waters. This will mean that certain Territory laws, which currently regulate occupational health and safety matters on offshore facilities, will be unapplied and a new Occupational Health and Safety Schedules inserted into the act.

Currently, occupational health and safety is covered by other Territory legislation. The new provisions in this schedule contain similar provisions to those that are currently in force in the Northern Territory. The new professional health and safety schedule outlines the duties that have to be carried out by various people with responsibilities on an offshore facility, including the operator of the facility and employees or workers. It also extends to the manufacturers and suppliers of plant and substances to be used on the offshore facility to ensure that when properly used it is safe and without risk to the health and safety of the workers.

The occupational health and safety regime will be supported by the safety cage approach outlined in the regulations of the act. Safety cage approach requires the owner/operators of offshore facilities to provide for high standards of occupational health and safety procedures. The safety cage approach is currently used in the offshore petroleum industry in Australia and other countries, such as the United Kingdom and Norway.

The proposed amendment will allow the Northern Territory to apply the Commonwealth Petroleum (Submerged Lands) Act in relation to (inaudible) in the Territory and adjacent area waters. The current Territory regime utilises an older outdated set of directions which are issued at the Titles Office. Those directions predate the new safety cage regime currently adopted by the Commonwealth, other states and some overseas countries. By adopting these regulations, the Territory will be assured of maintaining the highest standards in offshore regulations, ensuring that companies exploring our waters come under the same requirement as well as in other jurisdictions.

The bill provides for the functions of the Safety Authority, which include the promotion of the professional health and safety of persons on offshore petroleum facilities, and the development and implementation of monitoring and enforcement strategies to ensure compliance with occupational health and safety regulations. The Safety Authority is also able to investigate occupational health and safety issues, and make reports and recommendations to the Territory and Commonwealth ministers on occupational health and safety matters. The Safety Authority is also empowered to cooperate with other Territory and Commonwealth agencies that may also have functions relating to offshore petroleum operations.

The bill gives the Territory minister the power to require the Safety Authority to prepare reports or give information in relation to the performance of the Safety Authority or in the exercise of its powers in Territory waters. The minister must also cause a review to be undertaken of the operations of the Safety Authority in Territory waters every three years, and a copy of the review is to be tabled in parliament.

The bill also provides for a Safety Authority Board, which has the functions of giving advice and to make recommendations to the chief executive officer of the Safety Authority, state, territory or Commonwealth minister and the Ministerial Council on Mineral and Petroleum Resources. Advice may be given on policy or strategic matters in relation to occupational health and safety issues on offshore facilities or the performance of the Safety Authority. The Safety Authority will commence operation on 1 January 2005.

I believe the provisions of this bill will benefit the petroleum industry by providing consistent applications of health and safety regulations on offshore facilities by a national safety authority that will be staffed by people with a unique mix of technical (inaudible) judgement and skills. I am confident that the new Safety Authority will provide a high degree of confidence in the regulation of safety on offshore facilities, and the protection of the offshore workers.

In conclusion, it is important we act now to amend our legislation to mirror amended provisions in the Commonwealth Petroleum (Submerged Lands) Act 1967, allowing for a single national legislative authority safety approach. Madam Speaker, I commend the bill to honourable members.

Debate adjourned.

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