Northern Territory Consolidated Acts Northern Territory Consolidated Acts(1) A permittee, lessee or licensee shall carry out all petroleum exploration operations and operations for the recovery of petroleum in the permit area, lease area or licence area in a proper and workmanlike manner and in accordance with good oilfield practice and shall secure the safety, health and welfare of persons engaged in those operations in or about the permit area, lease area or licence area.
(2) In particular, and without limiting the generality of subsection (1), but subject to any authorization or requirement given or made by or under this Act or regulations or directions under this Act, a permittee, lessee or licensee shall:
(a) control the flow and prevent the waste or escape in the permit area, lease area or licence area of petroleum or water;
(b) prevent the escape in the permit area, lease area or licence area of any mixture of water or drilling fluid with petroleum or any other matter;
(c) prevent damage to petroleum-bearing strata in an area, whether in the adjacent area or not, in respect of which the permit, lease or licence is not in force;
(d) keep separate:
(i) each petroleum pool discovered in the permit area, lease area or licence area; and
(ii) such of the sources of water, if any, discovered in that area as the Minister, by notice in writing served on that person, directs; and
(e) prevent water or any other matter entering any petroleum pool through wells in the permit area, lease area or licence area except when required by, and in accordance with, good oilfield practice.
(3) A pipeline licensee shall operate a pipeline in a proper and workmanlike manner and shall secure the safety, health and welfare of persons engaged in operations in connection with the pipeline.
(4) In particular, and without limiting the generality of subsection (3), a pipeline licensee shall prevent the waste or escape of petroleum or water from a pipeline or from any secondary line, pumping station, tank station, valve station or water line.
(5) A person who is the holder of a special prospecting authority or an access authority shall carry out all petroleum exploration operations in the area in respect of which the special prospecting authority or access authority is in force in a proper and workmanlike manner and in accordance with good oilfield practice and shall secure the safety, health and welfare of persons engaged in those operations in or about that area.
(7) It is a defence if a person charged with failing to comply with a provision of this section, or a defendant in an action arising out of a failure by the defendant to comply with a provision of this section, proves that he took all reasonable steps to comply with that provision.
Penalty: If the offender is a natural person – 200 penalty units.
If the offender is a body corporate – 1 000 penalty units.