Northern Territory Second Reading Speeches

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PETROLEUM (SUBMERGED LANDS) AMENDMENT BILL 2005

The main purpose of this bill is to amend the Northern Territory Petroleum (Submerged Lands) Act in response to changes made to the corresponding Commonwealth legislation arising from the need to facilitate the development of the Greater Sunrise offshore petroleum resources of the Timor Sea. The Petroleum (Submerged Lands) Act makes provision for the exploration and exploitation of petroleum resources in submerged lands adjacent to the coast 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 Territory legislation should remain consistent with the corresponding Commonwealth legislation in order to retain a common regulatory regime applying to both jurisdictions.

The area seawards beyond the three nautical mile limit of the Northern Territory is constitutionally under the jurisdiction of the Commonwealth and is currently referred to as a Commonwealth adjacent area. In the spirit of cooperation, provision is made for the area to be jointly administered by the Commonwealth and the Northern Territory. However, in the event of a disagreement arising between the parties that is unable to be resolved, the Commonwealth’s view would prevail. The East Timor-Commonwealth Utilisation Agreement provides for the establishment of the Greater Sunrise field and this has resulted in the need for the Commonwealth to amend its legislation. This action has a minor impact on the corresponding Territory legislation, hence, there is a need for these minor amendments that are contained in the bill.

The newly established Greater Sunrise unit area is amalgamation of a small portion of two offshore areas that straddle the boundaries of the joint petroleum development area. Administration is jointly shared between Australia and East Timor, and the existing Commonwealth adjacent area. In the latter case, the small portion will no longer be the subject of joint Northern Territory/Commonwealth administration, but revert to the sole responsibility of the Commonwealth. While, in future, this small portion will remain part of the Commonwealth adjacent area, it will no longer be subject to joint administration, and will be known as the Eastern Greater Sunrise area.

The Commonwealth adjacent area, except for the portion known as the Eastern Greater Sunrise will continue to be jointly administered as before, by the Northern Territory and the Commonwealth, but renamed the principal Northern Territory Petroleum Submerged Land Area. These changes will come into operation following ratification of the utilisation agreement by the parliament of the Republic of East Timor and once the Commonwealth commences its amendments.

Turning to the bill, you will notice that the amendments that are proposed are minor and of an administrative nature, but are necessary so the Northern Territory Petroleum (Submerged Lands) Act remains consistent with its corresponding Commonwealth legislation. The bill amends the Petroleum (Submerged Lands) Act in the following ways: by amending the definition to include a reference to the jointly administered area as the principal Northern Territory petroleum submerged land area and a portion of the adjacent area to be known as the Eastern Greater Sunrise Area, will be exempt from the joint arrangements; the inclusion of minor drafting changes confined to Part 1, Division 2 by deleting the reference to the joint administered area as being the Commonwealth adjacent area; and substituting a new name over the principal Northern Territory principal submerged land area.

Madam Speaker, I commend the bill to the House.

Debate adjourned.

Continued from 20 October 2005.

Mrs MILLER (Katherine): Mr Acting Deputy Speaker, this bill is important to tidy up Territory legislation to conform to Commonwealth legislation on the same matter. However, I would like to take members back a little, which may help some of the newer members understand the complexities of this matter and some of the offshore debate which, at times, has been clouded in emotional rhetoric by the government and, in particular, the Chief Minister resulting in the Northern Territory government now been locked out of any serious discussions.

The Greater Sunrise International Unitisation Agreement simply unifies the Sunrise gas fields to be developed as a single unity and establishes the proportions of the field in each of the jurisdictions; that is, 79.9% in Australian waters and 20.1% in the joint petroleum development area where it is a 90:10 split in favour of Timor Leste.

The split was recognised in the Timor Sea Treaty and the IUA was negotiated and signed off by both governments at the time the treaty was ratified in 2002. Australia has ratified the IUA which needs to be done through the Commonwealth parliament. However, Timor Leste has not ratified the IUA through its parliament as it was holding a position of wanting a better deal in regards to greater share, boundaries and the like.

This did not establish a formal Greater Sunrise area as it is now called. Then followed the current situation which has taken from mid-2004 and is still not settled; that is, the Sunrise Revenue Sharing Agreement. This does not affect the IUA or treaty but, rather, defines a sharing of revenue between the two sovereign governments. This has not been signed off by Timor Leste and the last I heard, the Australian government is standing firm on the deal on offer. The terms of the revenue sharing agreement include acceptance and ratification of the IUA as it stands, and no change to maritime boundaries.

Last year, the Australian government approached the Northern Territory government and advised that, due to the diplomatic and foreign nature of the issues, it would be appropriate that the Australian government dealt directly with Sunrise rather than as a joint designated authority with the Northern Territory. That speaks volumes for how the Australian government views the Northern Territory government. It is not up to handling such a sensitive, diplomatic issue, and has been cut out of the action - all due to how the Chief Minister and her government ran around on a misguided, mismanaged campaign to get Sunrise gas onshore.

As a result of this action by the Australian government, those licences that comprise the Australian side of Sunrise are excised, and now are under sole Australian government administration.

The remainder of the Timor Sea area has been renamed so that it is clear that it is under joint Northern Territory/Australian administration as before. All of these changes were necessary to reflect the Australian government's own legislation so that it was consistent.

It is likely that the Northern Territory government may still provide services for the Australian government for the Sunrise area under a contract basis, but not by statutory right - a sad indictment that the Northern Territory government is viewed as not good enough by the Australian government. The amendments are of an administrative nature and will clearly bring clarity to one aspect of the Timor Sea business.

Mr VATSKALIS (Mines and Energy): Mr Acting Deputy Speaker, what an unbelievable statement! It has nothing to do with the Northern Territory. It had nothing to do with the Northern Territory, member for Katherine. You better talk to the person who wrote your speech and tell him to have a look at what really happened. I understand it is a technical bill and it is very difficult. I find it difficult myself. The reality is, two countries - Timor and Australia - made an agreement. Because of this agreement, part of area we jointly administered before will become the Greater Sunrise area administered by two countries. Only a small portion will come out of the joint administrative area. That will be the sole jurisdiction of the Commonwealth. The rest of the area will remain as a Commonwealth adjacent area, jointly administered by the Commonwealth and the Territory. It is very simple.

They are trying to tell us now that the Territory is not going to be able to administer the Commonwealth waters. Of course, we are not. We cannot - only with the agreement with the Commonwealth. At this stage, the Greater Sunrise is a defined area and will be administered by East Timor and the Commonwealth - full stop - two states. It has nothing to do with the Northern Territory government not being trusted by the Commonwealth government. The reality is the Commonwealth trusts the Territory, not only to administer the Commonwealth adjacent area, but to carry out environmental impact assessments for the Commonwealth. The Commonwealth trusts the Territory government to do a lot of work for the Commonwealth. It has nothing to do with trusting or not trusting the Territory government; it simply has to do with the two agreements between two states.

This is a simple, technical bill. This is a bill to amend the Territory legislation to recognise the fact that a small portion of the Commonwealth adjacent area will now go into the Greater Sunrise that will be administered by Timor Leste and the Commonwealth of Australia. It is nothing to do with trust.

If you want to go there, I would like to remind you that it was not the Labor government of the Territory that was not trusted by the Commonwealth or the Timor government, it was the ex-CLP Chief Minister. The Prime Minister of East Timor said: 'Out of the room, otherwise I sign nothing'. That was Denis Burke; it had nothing to do with us.

Not only that; I recall very well when the Chief Minister made suggestions to find a solution between Australia and East Timor and then, a few months later, came out with a solution that was very similar to what Clare Martin had suggested. It has nothing to do with trusting or not trusting the Territory. The Commonwealth trusts the Territory; we work very well together. We will work well together even in the sensitive areas like uranium. The Commonwealth trusts the Northern Territory to administer uranium mines on a day-to-day basis and will continue to do so.

It is a very technical deal, I understand. I am disappointed in the person who wrote your speech because he tried to make a political statement. That deal has nothing to do with political statements, and I would strongly suggest you have some words with that person because he has misled you.

Motion agreed to; bill read a second time.

 

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