Queensland Bills Queensland Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
Queensland
PETROLEUM AND GAS
(PRODUCTION AND SAFETY)
BILL 2004
Queensland
PETROLEUM AND GAS (PRODUCTION
AND SAFETY) BILL 2004
TABLE OF PROVISIONS
Section Page
CHAPTER 1--PRELIMINARY
PART 1--INTRODUCTION
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
PART 2--PURPOSE AND APPLICATION OF ACT
3 Purpose of Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
4 Act binds all persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
5 Application of Act to coastal waters of the State . . . . . . . . . . . . . . . . . . . . . 56
6 Relationship with Mineral Resources Act . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
7 Act does not affect other rights or remedies . . . . . . . . . . . . . . . . . . . . . . . . . 58
8 Native title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
PART 3--INTERPRETATION
Division 1--Dictionary
9 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Division 2--Key definitions
10 Meaning of "petroleum" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
11 Meaning of "LPG" and "fuel gas" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
12 What is a "prescribed storage gas" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
13 What is a "natural underground reservoir" . . . . . . . . . . . . . . . . . . . . . . . . . . 61
14 What is "exploring" for petroleum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
15 When petroleum is "produced" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
16 What is a "pipeline" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
17 What is a "petroleum facility". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
2
Petroleum and Gas (Production and Safety) Bill 2004
18 Types of authority under Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
19 Who is an "eligible person". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
20 What are the "conditions" of a petroleum authority . . . . . . . . . . . . . . . . . . . 65
21 What are the "provisions" of a petroleum authority . . . . . . . . . . . . . . . . . . . 65
22 What is an "authorised activity" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
23 What is a "work program" for an authority to prospect . . . . . . . . . . . . . . . . 66
24 What is a "development plan" for a petroleum lease . . . . . . . . . . . . . . . . . . 67
Division 3--Other matters relating to interpretation
25 Notes in text. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
PART 4--PROPERTY IN PETROLEUM
26 Petroleum the property of the State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
27 Petroleum reservation in land grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
28 Property in petroleum produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
PART 5--GENERAL PROVISIONS FOR PETROLEUM
AUTHORITIES
29 Graticulation of earth's surface into "blocks" and "sub-blocks" . . . . . . . . . 69
30 Petroleum authority does not create an interest in land. . . . . . . . . . . . . . . . . 70
CHAPTER 2--PETROLEUM TENURES AND RELATED
MATTERS
PART 1--AUTHORITIES TO PROSPECT
Division 1--Key authorised activities
31 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
32 Exploration and testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
33 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Division 2--Obtaining authority to prospect
Subdivision 1--Preliminary
34 Operation of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Subdivision 2--Competitive tenders
35 Call for tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
36 Right to tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
37 Requirements for making tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
38 Right to terminate call for tenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
3
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Deciding tenders
39 Process for deciding tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
40 Provisions for preferred tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
41 Deciding whether to grant authority to prospect . . . . . . . . . . . . . . . . . . . . . . 77
42 Provisions of authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
43 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
44 Notice to unsuccessful tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Division 3--Work programs
Subdivision 1--Function and purpose of work program
45 Function and purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Subdivision 2--Requirements for proposed initial work programs
46 Operation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
47 Program period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
48 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Subdivision 3--Criteria for deciding whether to approve proposed initial
work programs
49 Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Subdivision 4--Requirements for proposed later work programs
50 Operation of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
51 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
52 Program period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
53 Implementation of evaluation program for potential commercial area . . . . . 83
54 Later work programs for proposed new authorities . . . . . . . . . . . . . . . . . . . 83
Subdivision 5--Approval of proposed later work programs
55 Application of sdiv 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
56 Authority taken to have work program until decision on whether
to approve proposed work program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
57 Deciding whether to approve proposed program . . . . . . . . . . . . . . . . . . . . . 84
58 Steps after, and taking effect of, decision . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Subdivision 6--Amending work programs
59 Restrictions on amending work program . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
60 Applying for approval to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
61 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
4
Petroleum and Gas (Production and Safety) Bill 2004
62 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
63 Steps after, and taking effect of, decision . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Division 4--Key mandatory conditions for authorities to prospect
Subdivision 1--Preliminary
64 Operation of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Subdivision 2--Relinquishment condition and related provisions
65 Relinquishment condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
66 Part usually required to be relinquished . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
67 Sub-blocks that can not be counted towards relinquishment . . . . . . . . . . . . 90
68 Adjustments for sub-blocks that can not be counted. . . . . . . . . . . . . . . . . . . 90
69 Adjustment for particular potential commercial areas . . . . . . . . . . . . . . . . . 91
70 Relinquishment must be by blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
71 Ending of authority to prospect if all of it area relinquished. . . . . . . . . . . . . 91
Subdivision 3--Other mandatory conditions
72 Restriction on flaring or venting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
73 Permitted period for production or storage testing . . . . . . . . . . . . . . . . . . . . 92
74 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 93
75 Petroleum royalty and annual rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
76 Civil penalty for nonpayment of annual rent. . . . . . . . . . . . . . . . . . . . . . . . . 93
77 Requirement to have work program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
78 Compliance with exploration activities in work program . . . . . . . . . . . . . . . 94
79 Obligation to lodge proposed later work program . . . . . . . . . . . . . . . . . . . . 94
80 Consequence of failure to comply with notice to lodge proposed
later work program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Division 5--Renewals
81 Conditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
82 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
83 Continuing effect of authority for renewal application . . . . . . . . . . . . . . . . 98
84 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
85 Provisions and term of renewed authority. . . . . . . . . . . . . . . . . . . . . . . . . . . 100
86 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
87 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
88 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
5
Petroleum and Gas (Production and Safety) Bill 2004
Division 6--Potential commercial areas
89 Applying for potential commercial area . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
90 Deciding potential commercial area application . . . . . . . . . . . . . . . . . . . . . . 103
91 Inclusion of evaluation program in work program . . . . . . . . . . . . . . . . . . . . 103
92 Term of declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
93 Extension of term of declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
94 Potential commercial area still part of authority . . . . . . . . . . . . . . . . . . . . . . 105
Division 7--Provisions to facilitate transition to petroleum lease
95 Application of div 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
96 Ministerial direction to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . 106
97 Taking proposed action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Division 8--Miscellaneous provisions
Subdivision 1--Area provisions
98 Area of authority to prospect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
99 Minister's power to decide excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
100 Minister may add excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
101 Area of authority to prospect reduced on grant of petroleum lease . . . . . . . 110
102 Effect of ending of declaration of potential commercial area . . . . . . . . . . . . 110
Subdivision 2--Dividing authorities to prospect
103 Applying to divide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
104 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
105 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
106 Provisions of new authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
107 Steps after deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
PART 2--PETROLEUM LEASES
Division 1--Key authorised activities
Subdivision 1--General provisions
108 Operation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
109 Exploration, production and storage activities . . . . . . . . . . . . . . . . . . . . . . . 115
110 Petroleum pipeline and water pipeline construction and operation . . . . . . . 116
111 Petroleum processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
112 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Provisions for coextensive natural underground
reservoirs
113 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
114 Coordination arrangement may be made about mining or production
from reservoir . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
115 Restriction on petroleum production from reservoir . . . . . . . . . . . . . . . . . . . 118
116 Dispute resolution by tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Division 2--Transition from authority to prospect to petroleum lease
Subdivision 1--Applying for petroleum lease
117 Who may apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
118 Requirements for making ATP-related application . . . . . . . . . . . . . . . . . . . . 120
119 Continuing effect of authority to prospect for ATP-related application . . . . 121
Subdivision 2--Deciding ATP-related applications
120 Right to grant if requirements for grant met . . . . . . . . . . . . . . . . . . . . . . . . . 122
121 Requirements for grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
122 Exception for particular relevant arrangements. . . . . . . . . . . . . . . . . . . . . . . 123
123 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
124 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
125 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Division 3--Obtaining petroleum lease by competitive tender
Subdivision 1--Preliminary
126 Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Subdivision 2--Calls for tenders
127 Call for tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
128 Right to tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
129 Right to terminate call for tenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Subdivision 3--Deciding tenders
130 Process for deciding tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
131 Provisions for preferred tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
132 Deciding whether to grant petroleum lease. . . . . . . . . . . . . . . . . . . . . . . . . . 129
133 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
134 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
135 Notice to unsuccessful tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
7
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Development plans
Subdivision 1--Function and purpose of development plan
136 Function and purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Subdivision 2--Requirements for proposed initial development plans
137 Operation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
138 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
139 Plan period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
140 Storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Subdivision 3--Criteria for deciding whether to approve proposed initial
development plans
141 Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Subdivision 4--Requirements for proposed later development plans
142 Operation of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
143 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
144 Later development plans for proposed new leases . . . . . . . . . . . . . . . . . . . . 134
Subdivision 5--Approval of proposed later development plans
145 Application of sdiv 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
146 Petroleum lease taken to have development plan until decision on
whether to approve proposed development plan . . . . . . . . . . . . . . . . . . . . . . 135
147 Deciding whether to approve proposed plan . . . . . . . . . . . . . . . . . . . . . . . . . 135
148 Power to require relinquishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
149 Steps after, and taking effect of, decision . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Division 5--Key mandatory conditions for petroleum leases
150 Operation of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
151 Restriction on flaring or venting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
152 Permitted period for production or storage testing . . . . . . . . . . . . . . . . . . . . 139
153 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 139
154 Obligation to commence production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
155 Petroleum royalty and annual rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
156 Civil penalty for nonpayment of annual rent. . . . . . . . . . . . . . . . . . . . . . . . . 140
157 Requirement to have development plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
158 Compliance with development plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
159 Obligation to lodge proposed later development plan. . . . . . . . . . . . . . . . . . 141
8
Petroleum and Gas (Production and Safety) Bill 2004
160 Consequence of failure to comply with notice to lodge proposed later
development plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Division 6--Renewals
161 Conditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
162 Requirements for making renewal application . . . . . . . . . . . . . . . . . . . . . . . 144
163 Continuing effect of lease for renewal application . . . . . . . . . . . . . . . . . . . . 145
164 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
165 Provisions and term of renewed lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
166 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
167 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Division 7--Miscellaneous provisions
Subdivision 1--Area and term of petroleum lease
168 Area of petroleum lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
169 Minister's power to decide excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
170 Minister may add excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Subdivision 2--Dividing petroleum leases
171 Applying to divide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
172 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
173 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
174 Provisions of new leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
175 Steps after deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
PART 3--DATA ACQUISITION AUTHORITIES
Division 1--Obtaining data acquisition authority
176 Who may apply for data acquisition authority . . . . . . . . . . . . . . . . . . . . . . . 154
177 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
178 Deciding application for data acquisition authority . . . . . . . . . . . . . . . . . . . 155
179 Notice of refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Division 2--Provisions for data acquisition authorities
180 Key authorised activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
181 Additional condition of relevant petroleum tenure . . . . . . . . . . . . . . . . . . . . 156
182 Authority holder is the relevant petroleum tenure holder from time to time 157
183 Authority ends if relevant petroleum tenure ends . . . . . . . . . . . . . . . . . . . . . 157
184 Relationship with subsequent petroleum tenure . . . . . . . . . . . . . . . . . . . . . . 157
9
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--WATER RIGHTS FOR PETROLEUM TENURES
185 Underground water rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
186 Right to allow use of associated water for domestic or stock purposes . . . . 159
187 Water monitoring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
188 Authorisation for Water Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
189 Water Act not otherwise affected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
PART 5--WATER MONITORING AUTHORITIES
Division 1--Obtaining water monitoring authority
190 Who may apply for water monitoring authority . . . . . . . . . . . . . . . . . . . . . . 161
191 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
192 Deciding application for water monitoring authority . . . . . . . . . . . . . . . . . . 161
Division 2--Key authorised activities
193 Operation of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
194 Water monitoring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
195 Limited right to take or interfere with underground water . . . . . . . . . . . . . . 163
196 Authorisation for Water Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
197 Water Act not otherwise affected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
198 Restriction on carrying out authorised activities . . . . . . . . . . . . . . . . . . . . . . 164
199 No right to petroleum discovered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Division 3--Miscellaneous provisions
200 Term of authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
201 Provision for who is the authority holder if only 1 related petroleum tenure 164
202 Additional condition of relevant petroleum tenure . . . . . . . . . . . . . . . . . . . . 164
203 Amending water monitoring authority by application . . . . . . . . . . . . . . . . . 165
PART 6--THIRD PARTY STORAGE ACCESS TO NATURAL
UNDERGROUND RESERVOIRS
Division 1--Purpose of part
204 Purpose of pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Division 2--Storage agreements and related provisions
Subdivision 1--Storage agreements
205 Meaning of "storage agreement" and "existing user" . . . . . . . . . . . . . . . . . . 166
206 Development plan overrides storage agreement . . . . . . . . . . . . . . . . . . . . . . 167
207 Existing user's obligation to give information . . . . . . . . . . . . . . . . . . . . . . . 167
10
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Negotiation obligations of petroleum lease holders
and existing users
208 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
209 Obligation to negotiate with proposed users . . . . . . . . . . . . . . . . . . . . . . . . . 168
210 Obligation about priority for proposed users . . . . . . . . . . . . . . . . . . . . . . . . 168
211 Obligation to give information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Division 3--Provisions for stored petroleum or prescribed storage gas
after petroleum lease ends
Subdivision 1--Preliminary
212 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Subdivision 2--Claiming stored petroleum or prescribed storage gas
213 Notice to claim for stored petroleum or prescribed storage gas . . . . . . . . . . 170
214 Property in stored petroleum or prescribed storage gas if no notice of
claim ............................................... 171
Subdivision 3--Deciding claims
215 Deciding claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
216 State property in stored petroleum or prescribed storage gas to
extent claims are not upheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Subdivision 4--Dealing with upheld claims
217 Application of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
218 Call for tenders required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
219 Requirement to notify change in ownership . . . . . . . . . . . . . . . . . . . . . . . . . 173
220 Preferred tender may make storage agreements . . . . . . . . . . . . . . . . . . . . . . 174
221 Negotiation notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
222 Obligation of holder to negotiate with current owners . . . . . . . . . . . . . . . . . 174
223 Taking of effect of non-owner lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
224 Cancellation of non-owner lease in particular circumstances . . . . . . . . . . . . 175
225 Annual rent for non-owner lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
226 State property in stored petroleum or prescribed storage gas in
particular circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
227 Storage rent payable by current owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Division 4--Regulatory provisions
228 Prohibition on actions preventing access . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
229 Orders to enforce prohibition on preventing access . . . . . . . . . . . . . . . . . . . 178
11
Petroleum and Gas (Production and Safety) Bill 2004
PART 7--COMMERCIAL VIABILITY ASSESSMENT
230 Minister's power to require commercial viability report. . . . . . . . . . . . . . . . 178
231 Required content of commercial viability report . . . . . . . . . . . . . . . . . . . . . 179
232 Minister's power to obtain independent viability assessment . . . . . . . . . . . . 180
233 Costs of independent viability assessment . . . . . . . . . . . . . . . . . . . . . . . . . . 181
PART 8--PETROLEUM ACTIVITIES COORDINATION
234 Arrangement to coordinate petroleum activities . . . . . . . . . . . . . . . . . . . . . . 181
235 Applying for Ministerial approval of proposed coordination arrangement. . 183
236 Ministerial approval of proposed coordination arrangement . . . . . . . . . . . . 184
237 Approval does not confer right to renew . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
238 Subleasing of 1923 Act lease provided for under coordination arrangement 185
239 Coordination arrangement overrides relevant leases. . . . . . . . . . . . . . . . . . . 185
240 Grant of pipeline licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
241 Amendment or cancellation by parties to arrangement. . . . . . . . . . . . . . . . . 186
242 Minister's power to cancel arrangement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
243 Effect of cancellation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
PART 9--EXISTING WATER ACT BORES
Division 1--Preliminary
244 Simplified outline of pt 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
245 What is an "existing Water Act bore" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
246 When an existing Water Act bore is "unduly affected" . . . . . . . . . . . . . . . . . 188
247 When an existing Water Act bore has an "impaired capacity" . . . . . . . . . . . 189
248 What are "restoration measures". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
249 References to petroleum tenure holder in pt 9 . . . . . . . . . . . . . . . . . . . . . . . 189
Division 2--Obligation to make good for existing Water Act bores
250 The make good obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
251 Provisions for application of make good obligation . . . . . . . . . . . . . . . . . . . 190
Division 3--Underground water impact reports
Subdivision 1--Fixing of trigger threshold for aquifers
252 Operation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
253 Request for trigger threshold and action on request . . . . . . . . . . . . . . . . . . . 191
254 Provisions for fixing trigger threshold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
12
Petroleum and Gas (Production and Safety) Bill 2004
255 Fixed trigger threshold applies for all underground water rights . . . . . . . . . 192
Subdivision 2--Lodging report
256 Lodging report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
257 Requirements for report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
258 Exemption from underground water flow model . . . . . . . . . . . . . . . . . . . . . 194
Subdivision 3--Consideration of underground water impact report
259 Power to require amendment of report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
260 Decision on report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Division 4--Pre-closure report
261 Obligation to lodge pre-closure report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
262 Requirements for report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
263 Power to require amendment of report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
264 Effect of lodgment of report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Division 5 --Monitoring and review reports
265 Operation of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
266 Obligation to lodge monitoring reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
267 Obligation to lodge review reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
268 Effect of lodgment of review report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
269 Chief executive's power to change frequency of reports. . . . . . . . . . . . . . . . 199
270 Chief executive's power to change reporting days . . . . . . . . . . . . . . . . . . . . 200
271 Power to require amendment of review report . . . . . . . . . . . . . . . . . . . . . . . 200
Division 6--Complying with make good obligation
Subdivision 1--Obligation to negotiate
272 Petroleum tenure holder's obligation to negotiate. . . . . . . . . . . . . . . . . . . . . 201
Subdivision 2--Tribunal decision on how the obligation must be
complied with
273 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
274 Applying to tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
275 Provisions for making decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
276 Provisions for deciding compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Subdivision 3--Miscellaneous provisions
277 Make good agreement or tribunal's decision binds successors and assigns . 203
278 Reviews by tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
13
Petroleum and Gas (Production and Safety) Bill 2004
279 Right of entry after petroleum tenure ends to comply with make
good obligation ......................................... 204
280 Advice from Water Act regulator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
PART 10--GENERAL PROVISIONS FOR PETROLEUM WELLS,
WATER SUPPLY BORES AND WATER OBSERVATION BORES
Division 1--Restrictions on drilling
281 Standard for drilling petroleum well . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
282 Restriction on who may drill water observation bore or water
observation bore .......................................... 205
Division 2--Converting petroleum well to water supply bore
283 Restrictions on making conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
284 Notice of conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Division 3--Transfers of petroleum wells, water observation bores and
water supply bores
Subdivision 1--General provisions
285 Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
286 Transfer only permitted under div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
287 Effect of transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Subdivision 2--Permitted transfers
288 Transfer of water supply bore or water observation bore to landowner . . . . 207
289 Transfer of petroleum well to holder of geothermal exploration permit
or mining tenement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
290 Transfer of water observation bore to petroleum tenure or water
monitoring authority holder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Subdivision 3--Notice of transfer
291 Notice of transfer to Water Act regulator or Mineral Resources Act
chief executive ........................................ 209
Division 4--Decommissioning of petroleum wells, water observation
bores and water supply bores
292 Obligation to decommission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
293 Right of entry to facilitate decommissioning . . . . . . . . . . . . . . . . . . . . . . . . 211
294 Responsibility for well or bore after decommissioning . . . . . . . . . . . . . . . . 211
14
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 3--PROVISIONS FOR COAL SEAM GAS
PART 1--PRELIMINARY
Division 1--Introduction
295 Main purposes of ch 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
296 How main purposes are achieved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
297 Relationship with chs 2, 5 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
298 Description of petroleum leases for ch 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Division 2--Definitions for chapter 3
299 What is "coal seam gas" and "incidental coal seam gas" . . . . . . . . . . . . . . . 216
300 What is "oil shale". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
301 What is a "coal exploration tenement" and a "coal mining lease" . . . . . . . . 216
302 What is an "oil shale exploration tenement" and an "oil shale mining lease" 217
303 What is a "coal or oil shale mining tenement" . . . . . . . . . . . . . . . . . . . . . . . 217
PART 2--OBTAINING PETROLEUM LEASE OVER LAND IN
AREA OF COAL OR OIL SHALE EXPLORATION TENEMENT
Division 1--Obtaining petroleum lease other than by or jointly with, or
with the consent of, coal or oil shale exploration tenement holder
Subdivision 1--Preliminary
304 Application of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Subdivision 2--Provisions for making petroleum lease application
305 Additional requirements for making application. . . . . . . . . . . . . . . . . . . . . . 218
306 Content requirements for CSG statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Subdivision 3--Provisions for splitting application in particular
circumstances
307 Requirement to split application if it relates to coal or oil
shale mining tenements not held by the same person . . . . . . . . . . . . . . . . . . 220
308 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 221
309 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 221
Subdivision 4--Obligations of applicant and coal or oil shale
exploration tenement holder
310 Applicant's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
311 Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
312 Consequence of applicant not complying with obligations or
requirement .......................................... 224
313 Obligations of coal or oil shale exploration tenement holder . . . . . . . . . . . . 224
15
Petroleum and Gas (Production and Safety) Bill 2004
314 Submissions by coal or oil shale exploration tenement holder . . . . . . . . . . . 225
Subdivision 5--Priority for earlier coal mining lease or oil shale mining
lease application or proposed application
315 Earlier coal mining lease or oil shale mining lease application . . . . . . . . . . 226
316 Proposed coal mining lease or oil shale mining lease for which EIS
approval given ......................................... 227
317 Proposed mining lease declared a significant project . . . . . . . . . . . . . . . . . . 228
Subdivision 6--Ministerial decision about whether to give any
preference to development of coal or oil shale resources
318 When preference decision is required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
319 Decision about whether to give any preference to development
of coal or oil shale ........................................ 230
320 Reference to tribunal before making preference decision. . . . . . . . . . . . . . . 230
321 Restrictions on giving preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
Subdivision 7--Process if preference decision is to give any preference
to development of coal or oil shale resources
322 Application of sdiv 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
323 Notice to applicant and coal or oil shale exploration tenement holder 233
324 Mining lease application for all of the land. . . . . . . . . . . . . . . . . . . . . . . . . . 233
325 Mining lease application for part of the land . . . . . . . . . . . . . . . . . . . . . . . . 233
326 No mining lease application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Subdivision 8--Deciding petroleum lease
327 Application of sdiv 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
328 Additional criteria for deciding provisions of petroleum lease . . . . . . . . . . . 235
329 Power to impose relinquishment condition . . . . . . . . . . . . . . . . . . . . . . . . . . 235
330 Publication of outcome of application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Division 2--Petroleum lease application by or jointly with, or with the
consent of, coal or oil shale exploration tenement holder
331 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
332 Right to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
333 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
334 No calls for tenders after application made. . . . . . . . . . . . . . . . . . . . . . . . . . 238
335 Requirement to split application if it relates to coal or oil
shale mining tenements not held by the same person . . . . . . . . . . . . . . . . . . 238
336 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 239
16
Petroleum and Gas (Production and Safety) Bill 2004
337 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 239
338 Priority for earlier mining lease application or proposed application . . . . . . 239
339 Priority for deciding earlier petroleum lease application . . . . . . . . . . . . . . . 239
340 Right to grant if particular requirements met . . . . . . . . . . . . . . . . . . . . . . . . 240
341 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Division 3--Petroleum lease applications in response to Mineral
Resources Act preference decision
342 Additional ground for refusing application . . . . . . . . . . . . . . . . . . . . . . . . . . 242
PART 3--OBTAINING PETROLEUM LEASE OVER LAND IN
AREA OF COAL MINING LEASE OR OIL SHALE MINING
LEASE
Division 1--Exclusion of power to call for tenders
343 Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Division 2--Petroleum lease application other than by or jointly with
coal mining lease holder or oil shale mining lease holder
344 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
345 Additional requirements for making application. . . . . . . . . . . . . . . . . . . . . . 244
346 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 244
347 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 244
348 Notice to coal mining lease holder or oil shale mining lease holder. . . . . . . 244
349 Coal mining lease holder's or oil shale mining lease holder's
obligation to negotiate ..................................... 245
350 Additional requirements for grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Division 3--Petroleum lease application by or jointly with coal mining
lease holder or oil shale mining lease holder
351 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
352 Right to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
353 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
354 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 247
355 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 248
356 Right to grant if particular requirements met . . . . . . . . . . . . . . . . . . . . . . . . 248
357 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
17
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--ADDITIONAL PROVISIONS FOR AUTHORITIES TO
PROSPECT AND DATA ACQUISITON AUTHORITIES
Division 1--Grant of authority to prospect in area of coal or oil shale
exploration tenement
358 Provisions for authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
Division 2--Restriction on authorised activities on coal mining lease or
oil shale mining lease land
359 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
360 Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
Division 3--Exception to automatic area reduction of authority to
prospect on grant of petroleum lease
361 Exception. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
Division 4--Conditions
362 Notice to coal or oil shale exploration tenement holders and applicants 251
363 Compliance with obligations under Mineral Resources Act . . . . . . . . . . . . . 251
PART 5--ADDITIONAL PROVISIONS FOR PETROLEUM
LEASES
Division 1--Restriction on authorised activities for particular petroleum
leases
364 Restriction on authorised activities on overlapping ATP land. . . . . . . . . . . . 252
Division 2--Conditions
365 Continuing requirement for coordination arrangement for
particular petroleum leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
366 Compliance with obligation to negotiate with coal or oil shale
mining lease applicant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
367 Requirement for giving of copy of relinquishment report. . . . . . . . . . . . . . . 254
368 Cessation of relinquishment condition for area not overlapping with
coal or oil shale exploration tenement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
Division 3--Amendment of relinquishment condition by application
Subdivision 1--Preliminary
369 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Subdivision 2--Making application to amend relinquishment condition
370 Conditions for applying to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
371 Obligation of coal or oil shale exploration tenement holder to negotiate . . . 255
372 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
373 Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
18
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Deciding amendment application
374 Submissions by coal or oil shale exploration tenement holder . . . . . . . . . . . 257
375 Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
376 Deciding amendment application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
Division 4--Restriction on amendment of other conditions
377 Interests of relevant coal or oil shale mining tenement holder to
be considered ......................................... 259
Division 5--Renewals
378 Applied provisions for making and deciding renewal application . . . . . . . . 259
Division 6--Restrictions on particular transfers
379 Requirement for coordination arrangement to transfer petroleum
lease in tenure area of mining lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
PART 6--ADDITIONAL PROVISIONS FOR DEVELOPMENT
PLANS
Division 1--Additional requirements for proposed initial development
plans
380 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
381 Statement about interests of coal or oil shale exploration tenement holder 261
382 Requirement to optimise petroleum production . . . . . . . . . . . . . . . . . . . . . . 261
383 Consistency with coal mining lease or oil shale mining lease
development plan and relevant coordination arrangement . . . . . . . . . . . . . . 262
Division 2--Additional development plan criteria for proposed later
development plans
384 Additional criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
PART 7--ADDITIONAL PROVISIONS FOR SAFETY
MANAGEMENT PLAN
385 Grant of petroleum lease does not affect obligation to make plan . . . . . . . . 262
386 Consultation with particular coal mining tenement or oil shale
mining tenement holders required before making plan. . . . . . . . . . . . . . . . . 263
387 Resolving disputes about provision proposed by coal or oil shale
exploration tenement holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
388 Additional content requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
389 Exemption from additional content requirements . . . . . . . . . . . . . . . . . . . . . 265
PART 8--CONFIDENTIALITY OF INFORMATION
390 Application of pt 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
391 Confidentiality obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
19
Petroleum and Gas (Production and Safety) Bill 2004
392 Civil remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
CHAPTER 4--LICENCES AND RELATED MATTERS
PART 1--SURVEY LICENCES
Division 1--Key authorised activities
393 Purpose of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
394 Surveying activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
Division 2--Obtaining survey licence
395 Applying for licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
396 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
397 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
PART 2--PIPELINE LICENCES
Division 1--Key authorised activities
Subdivision 1--Preliminary
398 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
399 What is "pipeline land" for a pipeline licence. . . . . . . . . . . . . . . . . . . . . . . . 271
Subdivision 2--General restriction on authorised activities
400 Restriction if there is an existing mining lease . . . . . . . . . . . . . . . . . . . . . . . 272
Subdivision 3--Pipeline construction and operation
401 Construction and operation of pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
402 Licence may extend transportation right to other prescribed substances . . . 273
403 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Division 2--Availability of pipeline licences
404 Licence types--area or point to point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
405 Pipeline licence can not be granted for distribution pipeline . . . . . . . . . . . . 274
406 Pipeline licence may be granted over any land . . . . . . . . . . . . . . . . . . . . . . . 274
Division 3--Obtaining pipeline licence
Subdivision 1--Applying for pipeline licence
407 Who may apply and multiple licence applications . . . . . . . . . . . . . . . . . . . . 275
408 Notice of proposed application to relevant local government . . . . . . . . . . . . 275
409 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
Subdivision 2--Deciding pipeline licence application
410 Deciding whether to grant licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
20
Petroleum and Gas (Production and Safety) Bill 2004
411 Public notice requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
412 Provisions of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
413 Restriction on imposing takeover condition . . . . . . . . . . . . . . . . . . . . . . . . . 279
414 Provision for reduction of area of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
415 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
416 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
Division 4--Key mandatory conditions for pipeline licences
417 Operation of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
418 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 281
419 Obligation to construct pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
420 Notice of completion of pipeline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
421 Notice to public road authority of pipeline constructed on public road . . . . 282
422 Obligations in operating pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
423 Annual licence fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
424 Civil penalty for nonpayment of annual licence fee . . . . . . . . . . . . . . . . . . . 283
Division 5--Amendment of point-to-point pipeline licences after
pipeline completed
425 Power to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
Division 6--Provisions for public land authorities
Subdivision 1--Public roads
426 Public road authority's obligations in aligning pipeline on road. . . . . . . . . . 284
427 Requirement to consult if construction affects existing pipeline . . . . . . . . . 284
428 Costs of pipeline works caused by public road construction . . . . . . . . . . . . 285
429 Public road authority's obligation to give holder information . . . . . . . . . . . 285
430 Consequence of not giving information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
Subdivision 2--Works directions
431 Power to give works directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
432 Compliance with works direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Division 7--Ministerial review of pipeline licence conditions
433 Application of div 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
434 Power to review licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
435 Notice of proposed amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
436 Decision on proposed amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
21
Petroleum and Gas (Production and Safety) Bill 2004
Division 8--Miscellaneous provisions
437 Limitation of transmission pipeline licence holder's liability . . . . . . . . . . . . 289
PART 3--PETROLEUM FACILITY LICENCES
Division 1--Key authorised activities
Subdivision 1--Preliminary
438 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
439 What is "petroleum facility land" for a petroleum facility licence . . . . . . . . 290
Subdivision 2--General restriction on authorised activities
440 Restriction if there is an existing mining lease . . . . . . . . . . . . . . . . . . . . . . . 291
Subdivision 3--Petroleum facility construction and operation
441 Construction and operation of petroleum facility . . . . . . . . . . . . . . . . . . . . . 292
442 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
Division 2--Obtaining petroleum facility licence
Subdivision 1--Applying for petroleum facility licence
443 Who may apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
444 Notice of proposed application to relevant local government . . . . . . . . . . . . 293
445 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
Subdivision 2--Deciding petroleum facility licence application
446 Deciding whether to grant licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
447 Provisions of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
448 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
449 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
Division 3--Key mandatory conditions for petroleum facility licences
450 Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
451 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 297
452 Obligation to construct facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
453 Obligation to operate facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
454 Annual licence fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
455 Civil penalty for nonpayment of annual licence fee . . . . . . . . . . . . . . . . . . . 298
PART 4--TAKING LAND FOR PIPELINES AND PETROLEUM
FACILITIES
456 State's power to take land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
457 Restrictions on power to take land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
22
Petroleum and Gas (Production and Safety) Bill 2004
458 Process for taking land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
459 Recovery of costs and compensation from holder or proposed holder . . . . . 300
460 Power to enter land proposed to be taken . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
461 Requirements for entry to land proposed to be taken . . . . . . . . . . . . . . . . . . 302
462 Disposal of land taken by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302
PART 5--PERMISSION TO ENTER LAND TO EXERCISE
RIGHTS UNDER A PIPELINE OR PETROLEUM FACILITY
LICENCE
Division 1--Applying for and obtaining permission
463 Applying for permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
464 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
465 Notice to owners about application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
466 Change in ownership during consultation period . . . . . . . . . . . . . . . . . . . . . 304
467 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
468 Criteria for decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
469 Statement of proposed resumption may be included. . . . . . . . . . . . . . . . . . . 306
470 Steps after and taking effect of part 5 permission . . . . . . . . . . . . . . . . . . . . . 306
Division 2--Effect and term of part 5 permission
471 Effect of part 5 permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
472 Term of part 5 permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
473 Power to cancel part 5 permission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
PART 6--AMENDING LICENCE BY APPLICATION
474 Amendment applications that may be made . . . . . . . . . . . . . . . . . . . . . . . . . 308
475 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
476 Notice requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
477 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
478 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
PART 7--RENEWALS
479 Conditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
480 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311
481 Continuing effect of licence for renewal application . . . . . . . . . . . . . . . . . . 311
482 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312
483 Provisions and term of renewed licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312
23
Petroleum and Gas (Production and Safety) Bill 2004
484 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
485 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
486 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
CHAPTER 5--COMMON PETROLEUM AUTHORITY
PROVISIONS
PART 1--SECURITY
487 Operation and purpose of pt 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
488 Power to require security for petroleum authority . . . . . . . . . . . . . . . . . . . . 316
489 Minister's power to require additional security. . . . . . . . . . . . . . . . . . . . . . . 316
490 Interest on security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
491 Power to use security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
492 Replenishment of security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
493 Security not affected by change in authority holder . . . . . . . . . . . . . . . . . . . 317
494 Retention of security after petroleum authority ends . . . . . . . . . . . . . . . . . . 318
PART 2--PRIVATE LAND
Division 1--Preliminary
495 Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
496 Provision for applying pt 2 to water monitoring authorities . . . . . . . . . . . . . 319
Division 2--Requirement for entry notice for entry to private land in
area of petroleum authority
497 Requirement for entry notice to carry out authorised activities . . . . . . . . . . 319
498 Waiver of entry notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
499 Required contents of entry notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
500 Giving entry notice by publication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
Division 3--Access to private land outside area of petroleum authority
Subdivision 1--Preliminary
501 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
Subdivision 2--Access rights and access agreements
502 Access rights of petroleum authority holder . . . . . . . . . . . . . . . . . . . . . . . . . 321
503 Restriction on exercise of access rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322
504 Owner or occupier must not unreasonably refuse to make access agreement 323
505 Principles for deciding whether access is reasonable . . . . . . . . . . . . . . . . . . 323
506 Provisions for access agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324
24
Petroleum and Gas (Production and Safety) Bill 2004
507 Access agreement binds successors and assigns . . . . . . . . . . . . . . . . . . . . . . 324
Subdivision 3--Tribunal resolution
508 Power of tribunal to decide access agreement. . . . . . . . . . . . . . . . . . . . . . . . 325
509 Power of tribunal to vary access agreement . . . . . . . . . . . . . . . . . . . . . . . . . 325
510 Criteria for deciding access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325
Division 4--Provisions for dealings or change in ownership
or occupancy
511 Entry notice or waiver of entry notice or access agreement not
affected by dealing ..................................... 326
512 Change in ownership or occupancy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
Division 5--Periodic notice after entry of land
513 Notice to owners and occupiers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327
PART 3--PUBLIC LAND
Division 1--Public roads
Subdivision 1--Preliminary
514 Significant projects excluded from div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . 328
515 What is a "notifiable road use" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328
Subdivision 2--Notifiable road uses
516 Notice of notifiable road use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
517 Directions about notifiable road use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330
518 Obligation to comply with road use directions . . . . . . . . . . . . . . . . . . . . . . . 330
Subdivision 3--Compensation for notifiable road uses
519 Liability to compensate public road authority. . . . . . . . . . . . . . . . . . . . . . . . 331
520 Compensation agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
521 Deciding compensation through tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
522 Criteria for decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
523 Tribunal review of compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333
524 Compensation to be addressed before carrying out notifiable road use . . . . 334
525 Compensation not affected by change in administration or holder 334
Division 2--Other public land
526 Public land authority approval required for particular activities . . . . . . . . . . 335
527 Conditions of public land authority approval . . . . . . . . . . . . . . . . . . . . . . . . 336
25
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--ACCESS TO LAND IN AREA OF ANOTHER
PETROLEUM AUTHORITY OR A MINING TENEMENT
528 Application of pt 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336
529 Access to land in area of mining lease or petroleum lease . . . . . . . . . . . . . . 336
530 Access to land in area of another type of mining tenement or petroleum
authority ............................................. 337
PART 5--GENERAL COMPENSATION PROVISIONS
531 General liability to compensate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
532 Compensation agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339
533 Deciding compensation through tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
534 Tribunal review of compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
535 Orders tribunal may make . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
536 Compensation to be addressed before entry to private land . . . . . . . . . . . . . 341
537 Compensation not affected by change in ownership or occupancy. . . . . . . . 342
PART 6--OWNERSHIP OF PIPELINES, EQUIPMENT AND
IMPROVEMENTS
Division 1--Pipelines
538 Application of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343
539 General provision about ownership while tenure or licence is in force
for pipeline ........................................... 343
540 Ownership afterwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
Division 2--Equipment and improvements
541 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
542 Ownership of equipment and improvements. . . . . . . . . . . . . . . . . . . . . . . . . 345
PART 7--REPORTING
Division 1--Reporting provisions for petroleum tenures
Subdivision 1--General provisions
543 Requirement of petroleum tenure holder to report outcome of testing . . . . . 346
544 Notice by petroleum tenure holder about discovery and commercial
viability .............................................. 347
545 Relinquishment report by tenure holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
546 End of tenure report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348
Subdivision 2--Records and samples
547 Requirement to keep records and samples . . . . . . . . . . . . . . . . . . . . . . . . . . 349
26
Petroleum and Gas (Production and Safety) Bill 2004
548 Requirement to lodge records and samples. . . . . . . . . . . . . . . . . . . . . . . . . . 349
Subdivision 3--Releasing required information
549 Meaning of "required information". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
550 Public release of required information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
551 Chief executive may use required information . . . . . . . . . . . . . . . . . . . . . . . 351
Division 2--Reporting provisions for all petroleum authorities
552 Obligation to lodge annual reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351
553 Power to require information or reports about authorised
activities to be kept or given . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352
PART 8--GENERAL PROVISIONS FOR CONDITIONS AND
AUTHORISED ACTIVITIES
Division 1--Other mandatory conditions for all petroleum authorities
554 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
555 Obligation to prevent spread of declared pests . . . . . . . . . . . . . . . . . . . . . . . 354
556 Requirement to consider using formed roads . . . . . . . . . . . . . . . . . . . . . . . . 355
557 Obligation to comply with Act and prescribed standards . . . . . . . . . . . . . . . 355
558 Obligation to survey if Minister requires . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
Division 2--Provisions for when authority ends or area reduced
559 Obligation to decommission pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
560 Obligation to remove equipment and improvements . . . . . . . . . . . . . . . . . . 357
561 Authorisation to enter to facilitate compliance with s 555 or div 2 . . . . . . . 358
Division 3--Provisions for authorised activities
562 General restriction on carrying out authorised activities. . . . . . . . . . . . . . . . 358
563 Who may carry out authorised activity for petroleum authority holder . . . . 359
PART 9--PETROLEUM REGISTER
564 Petroleum register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
565 Keeping of register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
566 Access to register. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
567 Chief executive may correct register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
PART 10--DEALINGS
Division 1--Permitted dealings
568 What is a "permitted dealing" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
569 Prohibited dealings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362
27
Petroleum and Gas (Production and Safety) Bill 2004
570 Conditions for permitted dealings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363
Division 2--Obtaining approval for permitted dealing
571 Minister may give indication for proposed permitted dealing . . . . . . . . . . . 363
572 Applying for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364
573 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364
574 Criteria for decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365
PART 11--SURRENDERS
575 Requirements for surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366
576 Requirements for making surrender application . . . . . . . . . . . . . . . . . . . . . . 367
577 Notice of application required for particular pipeline licences . . . . . . . . . . . 368
578 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368
579 Notice and taking effect of decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369
PART 12--ENFORCEMENT OF END OF AUTHORITY AND
AREA REDUCTION OBLIGATIONS
580 Power of authorised person to ensure compliance . . . . . . . . . . . . . . . . . . . . 369
581 Requirements for entry to ensure compliance. . . . . . . . . . . . . . . . . . . . . . . . 370
582 Duty to avoid damage in exercising remedial powers. . . . . . . . . . . . . . . . . . 371
583 Notice of damage because of exercise of remedial powers. . . . . . . . . . . . . . 371
584 Compensation for exercise of remedial powers . . . . . . . . . . . . . . . . . . . . . . 371
585 Ownership of thing removed in exercise of remedial powers . . . . . . . . . . . . 372
586 Recovery of costs of and compensation for exercise of remedial power . . . 372
PART 13--MISCELLANEOUS PROVISIONS
587 Minister's power to ensure compliance by petroleum authority holder . . . . 373
588 Interest on amounts owing to the State other than for petroleum royalty . . . 374
589 Recovery of unpaid amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374
CHAPTER 6--PETROLEUM ROYALTY
PART 1--IMPOSITION OF PETROLEUM ROYALTY
590 Imposition of petroleum royalty on petroleum producers. . . . . . . . . . . . . . . 375
591 Exemptions from petroleum royalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
592 Minister may decide measurement if not made or royalty information
not given ............................................ 377
PART 2--ROYALTY RETURNS
593 Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377
28
Petroleum and Gas (Production and Safety) Bill 2004
594 Obligation to lodge royalty return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
595 Fee for late lodgment of royalty return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
596 Approval to use estimates for royalty return . . . . . . . . . . . . . . . . . . . . . . . . . 378
597 Petroleum producer's obligations if use of estimates approved . . . . . . . . . . 379
598 Obligation to disclose inaccurate information. . . . . . . . . . . . . . . . . . . . . . . . 379
599 Annual royalty returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380
PART 3--PAYMENT OF PETROLEUM ROYALTY
600 Overpayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381
601 Underpayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381
602 Interest on unpaid petroleum royalty or additional petroleum royalty . . . . . 382
603 Recovery of unpaid petroleum royalty and interest . . . . . . . . . . . . . . . . . . . 382
604 Certificate of unpaid petroleum royalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383
PART 4--MONITORING PAYMENT OF PETROLEUM ROYALTY
Division 1--Audits by approved auditors
605 Appointment and qualifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384
606 Appointment conditions and limit on powers . . . . . . . . . . . . . . . . . . . . . . . . 384
607 Issue of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385
608 Production or display of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385
609 When approved auditor ceases to hold office . . . . . . . . . . . . . . . . . . . . . . . . 385
610 Revocation of approved auditor's appointment. . . . . . . . . . . . . . . . . . . . . . . 386
611 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
612 Return of identity card. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
613 Approved auditor's power to audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
614 Application of ch 10, pt 1, divs 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
Division 2--Audits by auditor-general
615 Auditor-general's power to audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
616 Powers in carrying out audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
617 Report on audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
CHAPTER 7--FUEL GAS QUALITY AND CHARACTERISTICS
FOR CONSUMERS
PART 1--PRELIMINARY
618 Application of ch 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
619 Who is a "consumer" of fuel gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
29
Petroleum and Gas (Production and Safety) Bill 2004
PART 2--QUALITY
Division 1--Quality restrictions
620 Prescribed quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
621 Restrictions on supplying gas not of prescribed quality . . . . . . . . . . . . . . . . 390
Division 2--Gas quality approvals
622 Chief inspector's power to approve quality. . . . . . . . . . . . . . . . . . . . . . . . . . 390
623 Criteria for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391
624 Steps after making decision about approval . . . . . . . . . . . . . . . . . . . . . . . . . 391
625 Power to cancel approval. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391
PART 3--CHARACTERISTICS
626 Fuel gas supplied through pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392
627 Prescribed odour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
628 Odour requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
CHAPTER 8--PETROLEUM AND FUEL GAS MEASUREMENT
PART 1--INTRODUCTION
Division 1--Application of chapter 8
629 Application of ch 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394
630 Relationship with Trade Measurement Act 1990 . . . . . . . . . . . . . . . . . . . . . 394
Division 2--Interpretation
631 What is a "meter" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
632 Who is the "controller" of a meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
633 What is the "measurement scheme" for a meter . . . . . . . . . . . . . . . . . . . . . . 396
634 "Measurement" includes estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396
635 What is the "tolerance for error" for a meter. . . . . . . . . . . . . . . . . . . . . . . . . 396
PART 2--MEASUREMENT SCHEMES
Division 1--Making and revision of measurement scheme
636 Obligations of controller of meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396
637 Content requirements for measurement schemes . . . . . . . . . . . . . . . . . . . . . 397
638 Power to fix competency required under measurement scheme . . . . . . . . . . 399
639 When measurement scheme must be revised . . . . . . . . . . . . . . . . . . . . . . . . 399
Division 2--Compliance with measurement scheme
640 Meter installation or use must comply with scheme . . . . . . . . . . . . . . . . . . . 400
30
Petroleum and Gas (Production and Safety) Bill 2004
641 Measurement must comply with scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
642 Controller responsible for compliance with measurement scheme. . . . . . . . 400
Division 3--Regulatory provisions
643 Chief executive's powers if no measurement scheme . . . . . . . . . . . . . . . . . . 401
644 Notice by chief executive of unsatisfactory measurement scheme . . . . . . . . 401
645 Considering submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402
646 Revision notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402
Division 4--Significant meter anomalies
647 Application of div 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
648 Restrictions on use of meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
649 Obligation to report if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
Division 5--Other reporting requirements
650 Annual measurement report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
651 Content requirements for annual measurement reports. . . . . . . . . . . . . . . . . 404
652 Power to require information about persons acting under
measurement scheme ...................................... 405
PART 3--COMPETENCY ASSESSMENTS
653 Chief executive's power to require competency assessment . . . . . . . . . . . . . 405
654 Costs of competency assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406
655 Requirements following competency assessment . . . . . . . . . . . . . . . . . . . . . 406
PART 4--GENERAL PROVISIONS ABOUT METERS
656 Controller's obligation to test if inaccuracy suspected . . . . . . . . . . . . . . . . . 407
657 Unlawfully interfering with meters or devices prohibited . . . . . . . . . . . . . . 407
658 Authorisation required to install or use pre-payment meters . . . . . . . . . . . . 408
PART 5--METER ACCURACY DISPUTES
Division 1--Preliminary
659 Application of pt 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408
660 Who is an "affected party" for a meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408
661 Who is the "service provider" for an affected party . . . . . . . . . . . . . . . . . . . 409
Division 2--Test by service provider
662 Service provider test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409
663 Content requirements for meter test certificate . . . . . . . . . . . . . . . . . . . . . . . 410
664 Refund if test shows inaccuracy in service provider's favour . . . . . . . . . . . . 410
31
Petroleum and Gas (Production and Safety) Bill 2004
665 Restriction on tester adjusting meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410
Division 3--Validation of service provider test
666 Validation test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411
667 Refund if test shows inaccuracy in service provider's favour . . . . . . . . . . . . 412
668 Service provider's obligations if test shows inaccuracy . . . . . . . . . . . . . . . . 412
CHAPTER 9--SAFETY
PART 1--SAFETY REQUIREMENTS
669 Making safety requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
PART 2--SAFETY MANAGEMENT PLANS
Division 1--Preliminary
670 What is an "operating plant" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
671 Limitation for facility or pipeline included in coal mining operation . . . . . . 415
672 What is a "stage" of an operating plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
673 Who is the "operator" of an operating plant . . . . . . . . . . . . . . . . . . . . . . . . . 416
Division 2--Operator's obligations
674 Requirement to have safety management plan . . . . . . . . . . . . . . . . . . . . . . . 416
675 Content requirements for safety management plans . . . . . . . . . . . . . . . . . . . 417
676 Publication of and access to safety management plan . . . . . . . . . . . . . . . . . 419
677 Operator responsible for compliance with safety management plan . . . . . . 420
678 When safety management plan must be revised . . . . . . . . . . . . . . . . . . . . . . 420
Division 3--Validation of safety management plans
679 Notice by chief inspector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
680 Considering submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
681 Revision notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
682 Other inspector's powers not affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
Division 4--Special provisions for safety management plans for coal
mining-CSG operating plant
683 Application of div 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
684 Integration with safety and health management system . . . . . . . . . . . . . . . . 423
685 Alternative compliance with s 676 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
686 Restriction on application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424
PART 3--SAFETY POSITIONS AND REPORT
Division 1--Executive safety manager and safety report
687 Who is the "executive safety manager" of an operating plant. . . . . . . . . . . . 424
688 Executive safety manager's general obligations . . . . . . . . . . . . . . . . . . . . . . 424
689 Executive safety manager must give annual safety report. . . . . . . . . . . . . . . 425
690 Content requirements for safety reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426
691 Obligation to give information to coal or oil shale exploration
tenement holder ..................................... 427
Division 2--Site safety manager
692 Site safety manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427
693 Site safety manager's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428
694 Operator is default site safety manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428
PART 4--OTHER SAFETY OBLIGATIONS
Division 1--Obligations relating to plant or equipment for use in
operating plant
695 Exclusion of application of division for coal mining-CSG operating
plant ................................................ 429
696 Designers, importers, manufacturers and suppliers . . . . . . . . . . . . . . . . . . . 429
697 Installers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429
Division 2--Operating plant owners
698 Owner must ensure operator is competent . . . . . . . . . . . . . . . . . . . . . . . . . . 430
Division 3--Control and management of risk at operating plant
699 General obligation to keep risk to acceptable level. . . . . . . . . . . . . . . . . . . . 430
700 What is an "acceptable level" of risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
701 When acceptable level of risk is achieved. . . . . . . . . . . . . . . . . . . . . . . . . . . 431
Division 4--Other obligations of persons at operating plant
702 Requirement to comply with safety management plan . . . . . . . . . . . . . . . . . 432
703 Requirement to comply with instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
704 Wilful or reckless acts or omissions that affect safety . . . . . . . . . . . . . . . . . 432
Division 5--Hazard reporting for operating plant on coal or oil shale
mining lease
705 Operator's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
Division 6--Prescribed incident reporting and security of incident sites
706 Requirement to report prescribed incident . . . . . . . . . . . . . . . . . . . . . . . . . . 433
707 Action to restrict access to incident site . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434
708 Offence to enter or remain in incident site if access restricted . . . . . . . . . . . 434
33
Petroleum and Gas (Production and Safety) Bill 2004
PART 5--BOARDS OF INQUIRY
Division 1--Establishment and functions
709 Minister may establish board of inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
710 Membership of board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
711 Board's functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
Division 2--Conduct of inquiry
712 Notice of inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436
713 Inquiry procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436
714 Inquiry to be public unless board directs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
715 Protection of members, representatives and witnesses . . . . . . . . . . . . . . . . . 437
716 Board's powers for inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
717 Who may participate at inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
718 Witnesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438
719 Inspection by board of documents or things . . . . . . . . . . . . . . . . . . . . . . . . . 438
Division 3--Miscellaneous provisions
720 Relationship with proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
721 False or misleading statements or document to board . . . . . . . . . . . . . . . . . 439
722 Contempt of board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
723 Change of board membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
PART 6--RESTRICTIONS ON GAS WORK
Division 1--Preliminary
724 Types of gas device . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
725 What is "gas work" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
Division 2--Restrictions
726 Gas devices (type A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
727 Gas devices (type B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
Division 3--Gas work licences and authorisations
728 Chief inspector's power to issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
729 Offence not to comply with conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442
730 Register of gas work licences and authorisations . . . . . . . . . . . . . . . . . . . . . 442
731 Access to register. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442
34
Petroleum and Gas (Production and Safety) Bill 2004
PART 7--MISCELLANEOUS PROVISIONS
732 Increase in maximum penalties in circumstances of aggravation . . . . . . . . . 443
733 Certification of gas device or gas fitting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443
734 Safety obligations of gas system installer . . . . . . . . . . . . . . . . . . . . . . . . . . . 444
CHAPTER 10--INVESTIGATIONS AND ENFORCEMENT
PART 1--INVESTIGATIONS
Division 1--Inspectors and authorised officers
735 Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445
736 Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445
737 Appointment conditions and limit on powers . . . . . . . . . . . . . . . . . . . . . . . . 446
738 Issue of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446
739 Production or display of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447
740 When inspector or authorised officer ceases to hold office . . . . . . . . . . . . . . 447
741 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447
742 Return of identity card. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448
Division 2--Powers of entry of inspectors and authorised officers
743 Power of entry--general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448
744 Inspector's additional entry power for emergency or incident . . . . . . . . . . . 449
745 Inspector's additional entry power for operating plant . . . . . . . . . . . . . . . . . 450
746 Authorised officer's additional entry power for petroleum authority . . . . . . 450
Division 3--Procedure for entry
747 Entry with consent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450
748 Application for warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451
749 Issue of warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451
750 Application by electronic communication and duplicate warrant. . . . . . . . . 452
751 Defect in relation to a warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
752 Warrants--procedure before entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
Division 4--Powers after entering a place
753 Application of div 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455
754 General powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455
755 Power to require reasonable help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456
756 Failure to comply with help requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . 456
35
Petroleum and Gas (Production and Safety) Bill 2004
Division 5--Power to obtain information
757 Power to require name and address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456
758 Power to require production of documents . . . . . . . . . . . . . . . . . . . . . . . . . . 457
759 Failure to produce document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458
760 Failure to certify copy of document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458
761 Power to require information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458
762 Failure to comply with information requirement . . . . . . . . . . . . . . . . . . . . . 458
Division 6--Seizure and forfeiture
Subdivision 1--Seizure powers
763 Power to seize things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459
764 Seizure of thing subject to security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459
Subdivision 2--Powers to support seizure
765 Directions to person in control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
766 Failure to comply with seizure direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
767 General powers for seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
768 Offence to unlawfully interfere with seized thing . . . . . . . . . . . . . . . . . . . . . 461
769 Testing seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461
Subdivision 3--Safeguards for seized property
770 Receipt and information notice for seized things . . . . . . . . . . . . . . . . . . . . . 462
771 Access to seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462
772 Return of seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463
Subdivision 4--Forfeiture
773 Forfeiture of seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463
774 Dealing with forfeited things. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465
Division 7--Notice of damage caused when exercising power
775 Application of div 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465
776 Requirement to give notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465
777 Content of notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466
Division 8--Miscellaneous provisions
778 Compensation for damage because of exercise of powers . . . . . . . . . . . . . . 466
779 Compliance with safety management plan . . . . . . . . . . . . . . . . . . . . . . . . . . 467
36
Petroleum and Gas (Production and Safety) Bill 2004
PART 2--DIRECTIONS AND ENFORCEMENT
Division 1--Direction to remedy contravention
780 Power to give compliance direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467
781 Requirements for giving compliance direction . . . . . . . . . . . . . . . . . . . . . . . 468
782 Failure to comply with compliance direction . . . . . . . . . . . . . . . . . . . . . . . . 468
Division 2--Direction to remedy dangerous situation
783 Power to give dangerous situation direction . . . . . . . . . . . . . . . . . . . . . . . . . 469
784 Requirements for giving dangerous situation direction. . . . . . . . . . . . . . . . . 469
785 Failure to comply with dangerous situation direction . . . . . . . . . . . . . . . . . . 470
Division 3--Enforcement of directions
786 Re-inspection or re-attendance to check compliance . . . . . . . . . . . . . . . . . . 470
787 Action to ensure compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470
788 Recovery of enforcement costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470
Division 4--Noncompliance procedure for all authorities under Act
Subdivision 1--Introduction
789 Operation of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471
Subdivision 2--Noncompliance action
790 Types of noncompliance action that may be taken . . . . . . . . . . . . . . . . . . . . 471
791 When noncompliance action may be taken . . . . . . . . . . . . . . . . . . . . . . . . . . 473
792 Provision for divided petroleum tenures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474
Subdivision 3--Procedure for immediate suspension of gas work licence
or authorisation
793 Application of sdiv 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475
794 Immediate suspension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475
Subdivision 4--Procedure for other noncompliance action
795 Application of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476
796 Notice of proposed noncompliance action other than immediate suspension 476
797 Considering submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477
798 Decision on proposed noncompliance action . . . . . . . . . . . . . . . . . . . . . . . . 477
799 Notice and taking effect of decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477
37
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 11--GENERAL OFFENCES
PART 1--RESTRICTIONS RELATING TO PETROLEUM
ACTIVITIES
800 Restriction on petroleum tenure activities. . . . . . . . . . . . . . . . . . . . . . . . . . . 479
801 Petroleum producer's measurement obligations . . . . . . . . . . . . . . . . . . . . . . 480
802 Restriction on pipeline construction or operation . . . . . . . . . . . . . . . . . . . . . 481
803 Restriction on petroleum facility construction or operation . . . . . . . . . . . . . 481
804 Duty to avoid interference in carrying out authorised activities . . . . . . . . . . 482
PART 2--INTERFERENCE WITH AUTHORISED ACTIVITIES
805 Obstruction of petroleum authority holder . . . . . . . . . . . . . . . . . . . . . . . . . . 482
806 Interfering with water observation bore . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
807 Restriction on building on pipeline land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
808 Restriction on changing surface of pipeline land . . . . . . . . . . . . . . . . . . . . . 483
809 Unlawful taking of petroleum or fuel gas prohibited . . . . . . . . . . . . . . . . . . 484
810 Restriction on building on petroleum facility land . . . . . . . . . . . . . . . . . . . . 484
PART 3--OTHER OFFENCES
811 Obstruction of inspector or authorised officer. . . . . . . . . . . . . . . . . . . . . . . . 484
812 Pretending to be inspector or authorised officer . . . . . . . . . . . . . . . . . . . . . . 485
813 False or misleading information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485
814 Executive officers must ensure corporation complies with Act. . . . . . . . . . . 485
815 Fuel gas suppliers must not use other supplier's containers . . . . . . . . . . . . . 486
816 Attempts to commit offences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486
CHAPTER 12--REVIEWS AND APPEALS
PART 1--REVIEW OF DECISIONS
817 Who may apply for review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
818 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
819 Stay of operation of original decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488
820 Review decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488
821 Review procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489
822 Notice of review decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489
PART 2--APPEALS
823 Who may appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490
824 Period to appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490
38
Petroleum and Gas (Production and Safety) Bill 2004
825 Starting appeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
826 Stay of operation of decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
827 Hearing procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
828 Appeal body's powers on appeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 492
829 Restriction on tribunal's powers for decision not to grant petroleum lease . 492
830 Appeals from appeal body's decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493
CHAPTER 13--EVIDENCE AND LEGAL PROCEEDINGS
PART 1--EVIDENTIARY PROVISIONS
831 Application of pt 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
832 Appointments and authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
833 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
834 Other evidentiary aids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
835 Proof of requirement for land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495
836 Safety management plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495
PART 2--OFFENCE PROCEEDINGS
837 Offences under Act are summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496
838 Statement of complainant's knowledge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496
839 Allegations of false or misleading matters . . . . . . . . . . . . . . . . . . . . . . . . . . 497
840 Conduct of representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497
841 Additional orders that may be made on conviction. . . . . . . . . . . . . . . . . . . . 498
CHAPTER 14--MISCELLANEOUS PROVISIONS
PART 1--APPLICATIONS
842 Substantial compliance with application requirements may be accepted . . . 499
843 Additional information may be required about application . . . . . . . . . . . . . 499
844 Amending applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
845 Withdrawal of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
846 Minister's power to refund application fee . . . . . . . . . . . . . . . . . . . . . . . . . . 501
PART 2--MISCELLANEOUS PROVISIONS FOR ALL
AUTHORITIES UNDER ACT
847 Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501
848 Power to correct or amend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501
849 Replacement of authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502
850 Joint and several liability for conditions and for debts to State . . . . . . . . . . 502
39
Petroleum and Gas (Production and Safety) Bill 2004
851 Notice of authority or licence holder's agents. . . . . . . . . . . . . . . . . . . . . . . . 502
PART 3--OTHER MISCELLANEOUS PROVISIONS
852 Name and address for service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503
853 Additional information about reports and other matters . . . . . . . . . . . . . . . . 503
854 References to right to enter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503
855 Application of provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504
856 Protection from liability for particular persons . . . . . . . . . . . . . . . . . . . . . . . 504
857 Delegation by Minister, chief executive or chief inspector . . . . . . . . . . . . . . 505
858 Approved forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505
859 Regulation-making power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505
CHAPTER 15--REPEAL AND TRANSITIONAL PROVISIONS
PART 1--REPEAL OF GAS (RESIDUAL PROVISIONS) ACT 1965
860 Repeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506
PART 2--TRANSITIONAL PROVISIONS FOR REPEAL OF GAS
(RESIDUAL PROVISIONS) ACT 1965
861 Definitions for pt 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506
862 Meters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506
863 Applications to test meter correctness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 507
864 Licences under repealed regulation that become a gas work licence . . . . . . 507
865 Licences under repealed regulation that become an authorisation . . . . . . . . 507
866 Applications for licence similar to gas work licence or authorisation . . . . . 508
867 Accidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508
868 Gas examiners and other officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509
869 Gas examiners' requirements under repealed Act, s 8. . . . . . . . . . . . . . . . . . 509
870 Gas examiners' powers under repealed Act, s 8(1)(e) . . . . . . . . . . . . . . . . . . 509
871 Corresponding decisions under repealed Act . . . . . . . . . . . . . . . . . . . . . . . . 510
PART 3--TRANSITIONAL PROVISIONS FOR PETROLEUM AND
GAS (PRODUCTION AND SAFETY) ACT 2004
Division 1--Provisions for particular existing mining tenements
872 Application of s 6 to particular existing mining tenements. . . . . . . . . . . . . . 510
Division 2--Provisions for coal seam gas
873 Deferral of s 115(1) for existing petroleum leases . . . . . . . . . . . . . . . . . . . . 511
40
Petroleum and Gas (Production and Safety) Bill 2004
874 Substituted restriction for petroleum leases relating to mineral
hydrocarbon mining leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511
Division 3--Miscellaneous provisions
875 Continuation of petroleum royalty exemption for flaring or
venting under 1923 Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511
876 Deferred application of s 803 for existing petroleum facilities. . . . . . . . . . . 512
877 Existing operating plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512
878 Exclusion of ch 5, pt 3, div 1 for continuance of particular existing
road uses ............................................ 513
CHAPTER 16--AMENDMENT OF ACTS
PART 1--AMENDMENT OF ABORIGINAL LAND ACT 1991
879 Act amended in pt 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514
880 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514
881 Amendment of s 88 (Royalties in relation to mining on Aboriginal land) . . 514
PART 2--AMENDMENT OF COAL MINING SAFETY AND
HEALTH ACT 1999
882 Act amended in pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
883 Insertion of new s 62A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
62A Additional requirement for coal mining operation for incidental
coal seam gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
884 Amendment of sch 2 (Subject matter for regulations) . . . . . . . . . . . . . . . . . 515
885 Amendment of sch 3 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516
PART 3--AMENDMENT OF COASTAL PROTECTION AND
MANAGEMENT ACT 1995
886 Act amended in pt 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
887 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
PART 4--AMENDMENT OF DANGEROUS GOODS SAFETY
MANAGEMENT ACT 2001
888 Act amended in pt 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
889 Amendment of s 3 (Application of Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
890 Amendment of s 126 (Notice of major accident) . . . . . . . . . . . . . . . . . . . . . 519
PART 5--AMENDMENT OF DUTIES ACT 2001
891 Act amended in pt 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519
892 Amendment of s 137 (Exemption--mining and petroleum legislation) . . . . 519
893 Amendment of sch 6 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519
41
Petroleum and Gas (Production and Safety) Bill 2004
PART 6--AMENDMENT OF ELECTRICAL SAFETY ACT 2002
894 Act amended in pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520
895 Amendment of s 6 (Application of Act to mines and petroleum plant) . . . . 520
PART 7--AMENDMENT OF ENVIRONMENTAL PROTECTION
ACT 1994
896 Act amended in pt 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520
897 Amendment of sch 3 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520
PART 8--AMENDMENT OF EXPLOSIVES ACT 1999
898 Act amended in pt 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
899 Amendment of s 6 (Act's effect on other Acts). . . . . . . . . . . . . . . . . . . . . . . 521
PART 9--AMENDMENT OF FIRE AND RESCUE SERVICE ACT
1990
900 Act amended in pt 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
901 Amendment of s 95 (Application of part) . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
PART 10--AMENDMENT OF FOREIGN OWNERSHIP OF LAND
REGISTER ACT 1988
902 Act amended in pt 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
903 Amendment of s 4 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
PART 11--AMENDMENT OF FORESTRY ACT 1959
904 Act amended in pt 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
905 Amendment of s 5 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
PART 12--AMENDMENT OF GAS PIPELINES ACCESS
(QUEENSLAND) ACT 1998
906 Act amended in pt 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
907 Amendment of s 11 (Interpretation of some expressions in the Gas
Pipelines Access (Queensland) Law and the Gas Pipelines Access
(Queensland) Regulations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
908 Amendment of s 56 (Definitions for pt 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
PART 13--AMENDMENT OF GAS SUPPLY ACT 2003
909 Act amended in pt 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
910 Amendment of s 40 (General conditions) . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
911 Amendment of s 46 (Standard for distribution pipes) . . . . . . . . . . . . . . . . . . 523
912 Amendment of s 57 (Conditions for amendment, cancellation or
suspension) .......................................... 524
913 Amendment of s 85 (General obligations in carrying out work). . . . . . . . . . 524
42
Petroleum and Gas (Production and Safety) Bill 2004
914 Amendment of s 88 (Compliance with work direction) . . . . . . . . . . . . . . . . 524
915 Amendment of s 93 (Compliance with consequential work requirement) . . 524
916 Amendment of s 98 (Compliance with remedial action requirement) . . . . . 524
917 Amendment of s 109 (Limits on provision of customer connection services) 525
918 Amendment of s 120 (When distributor may discontinue) . . . . . . . . . . . . . . 525
919 Amendment of s 123 (Recommencement) . . . . . . . . . . . . . . . . . . . . . . . . . . 525
920 Amendment of s 166 (General conditions) . . . . . . . . . . . . . . . . . . . . . . . . . . 525
921 Amendment of s 181 (Conditions for amendment, cancellation or
suspension) .......................................... 526
922 Amendment of s 204 (Limits on provision of customer retail services) . . . . 526
923 Amendment of s 222 (Individual metering option). . . . . . . . . . . . . . . . . . . . 526
924 Amendment of s 236 (Who is a "industry participant") . . . . . . . . . . . . . . . . 526
925 Amendment of s 239 (Contingency supply plan--content requirements) . . 527
926 Insertion of new s 257A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527
257A Exemption from Petroleum and Gas (Production and Safety)
Act, ss 800, 802 and 803 for person complying with direction . . . . . 527
927 Amendment of s 314 (Replacement of authority) . . . . . . . . . . . . . . . . . . . . . 528
928 Amendment of s 324 (Definitions for ch 7) . . . . . . . . . . . . . . . . . . . . . . . . . 528
929 Amendment of sch 4 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528
PART 14--AMENDMENT OF GEOTHERMAL EXPLORATION
ACT 2004
930 Act amended in pt 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529
931 Replacement of s 7 (Relationship with Petroleum Act 1923) . . . . . . . . . . . . 529
7 Relationship with petroleum legislation . . . . . . . . . . . . . . . . . . . . . . 529
932 Amendment of s 50 (Notice of significant discovery). . . . . . . . . . . . . . . . . . 529
933 Amendment of s 126 (Transfer of bore to permit holder) . . . . . . . . . . . . . . . 530
934 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530
PART 15--AMENDMENT OF INTEGRATED PLANNING ACT
1997
935 Act amended in pt 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531
936 Amendment of s 5.1.7 (Infrastructure charges). . . . . . . . . . . . . . . . . . . . . . . 531
937 Amendment of s 5.1.17 (Regulated infrastructure charges) . . . . . . . . . . . . . 531
938 Amendment of sch 9 (Development that is exempt from
assessment against a planning scheme). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531
43
Petroleum and Gas (Production and Safety) Bill 2004
PART 16--AMENDMENT OF LAND ACT 1994
939 Act amended in pt 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531
940 Amendment of s 20 (Dealing with mining interests) . . . . . . . . . . . . . . . . . . 532
PART 17--AMENDMENT OF LAND AND RESOURCES
TRIBUNAL ACT 1999
941 Act amended in pt 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 532
942 Amendment of sch 1 (Requirements for constituting tribunal). . . . . . . . . . . 532
PART 18--AMENDMENT OF LAND PROTECTION (PEST AND
STOCK ROUTE MANAGEMENT) ACT 2002
943 Act amended in pt 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533
944 Amendment of sch 3 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533
PART 19--AMENDMENT OF LAND TITLE ACT 1994
945 Act amended in pt 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533
946 Amendment of s 185 (Exceptions to s 184) . . . . . . . . . . . . . . . . . . . . . . . . . 533
PART 20--AMENDMENT OF LOCAL GOVERNMENT ACT 1993
947 Act amended in pt 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534
948 Amendment of s 4 (Meaning of "owner" of land) . . . . . . . . . . . . . . . . . . . . 534
PART 21--AMENDMENT OF MINERAL RESOURCES ACT 1989
949 Act amended in pt 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534
950 Insertion of new s 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534
3A Relationship with petroleum legislation . . . . . . . . . . . . . . . . . . . . . . 534
951 Insertion of new s 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536
6 Meaning of "mineral" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536
952 Insertion of new s 6D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537
6D Notes in text . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538
953 Amendment of s 234 (Governor in Council may grant mining lease) . . . . . 538
954 Amendment of s 235 (Entitlements of holder of mining lease) . . . . . . . . . . 538
955 Amendment of s 245 (Application for grant of mining lease) . . . . . . . . . . . 538
956 Amendment of s 269 (Tribunal's recommendation on hearing) . . . . . . . . . . 539
957 Amendment of s 271 (Minister to consider recommendation made
in respect of application for grant of mining lease). . . . . . . . . . . . . . . . . . . . 539
958 Amendment of s 276 (Conditions of mining lease) . . . . . . . . . . . . . . . . . . . 539
959 Amendment of s 298 (Mining other minerals or use for other purposes) . . . 539
44
Petroleum and Gas (Production and Safety) Bill 2004
960 Insertion of new pt 7AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540
PART 7AA--PROVISIONS FOR COAL SEAM GAS
Division 1--Preliminary
Subdivision 1--Introduction
318A Main purposes of pt 7AA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540
318AA How main purposes are achieved . . . . . . . . . . . . . . . . . . . . . . . . . . . 541
318AB Relationship with pts 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542
Subdivision 2--Definitions for part 7AA
318AC What is "coal seam gas" and "incidental coal seam gas" . . . . . . . . . 542
318AD What is "oil shale" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543
318AE What is a "coal exploration tenement", a "coal mining lease"
and a "special coal mining lease" ...................... 543
318AF What is an "oil shale exploration tenement" and an "oil shale
mining lease" ................................... 543
318AG What is a "coal or oil shale mining tenement" . . . . . . . . . . . . . . . . . 544
318AH What is a "development plan" and its "plan period" . . . . . . . . . . . . 544
318AI Petroleum tenures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544
318AJ What is a "coordination arrangement". . . . . . . . . . . . . . . . . . . . . . . . 545
318AK What is "the public interest". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545
Subdivision 3--Relationship with particular special agreement Acts
318AL Application of pt 7AA to grant of special coal mining lease
under Central Queensland Coal Associates Agreement Act 1968 . . . 545
318AM Part prevails over special agreement Acts . . . . . . . . . . . . . . . . . . . . 546
318AN No compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 546
Division 2--Obtaining coal mining lease or oil shale mining lease over
land in area of authority to prospect (other than by or jointly with, or with
the consent of, authority to prospect holder)
Subdivision 1--Preliminary
318AO Application of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 546
Subdivision 2--Provisions for making coal mining lease or oil shale
mining lease application
318AP Additional requirements for making application . . . . . . . . . . . . . . . 547
Subdivision 3--Provisions for splitting application in particular
circumstances
45
Petroleum and Gas (Production and Safety) Bill 2004
318AQ Requirement to split application if it relates to petroleum
lease and authority to prospect not held by same person. . . . . . . . . . 549
318AR Power to split application if it includes other land . . . . . . . . . . . . . . 550
318AS Power to split application at applicant's request . . . . . . . . . . . . . . . . 550
Subdivision 4--Obligations of applicant and authority to prospect holder
318AT Applicant's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550
318AU Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . 552
318AV Consequence of applicant not complying with obligations or
requirement .................................... 552
318AW Authority to prospect holder's obligations. . . . . . . . . . . . . . . . . . . . 553
318AX Submissions by authority to prospect holder . . . . . . . . . . . . . . . . . . 553
Subdivision 5--Priority for earlier petroleum lease application or
proposed application
318AY Earlier petroleum lease application. . . . . . . . . . . . . . . . . . . . . . . . . . 554
318AZ Proposed petroleum lease for which EIS approval given . . . . . . . . . 555
318B Proposed petroleum lease declared a significant project . . . . . . . . . . 556
Subdivision 6--Ministerial decision about whether to give any preference
to petroleum development
318BA When preference decision is required. . . . . . . . . . . . . . . . . . . . . . . . 556
318BB Decision about whether to give any preference to petroleum
development .................................. 558
318BC Reference to tribunal before making preference decision. . . . . . . . . 558
318BD Restrictions on giving preference . . . . . . . . . . . . . . . . . . . . . . . . . . . 559
318BE No certificate of public notice before preference decision . . . . . . . . 560
Subdivision 7--Process if preference decision is to give any preference to
petroleum development
318BF Application of sdiv 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561
318BG Notice to applicant and authority to prospect holder . . . . . . . . . . . . 561
318BH Petroleum lease application for all of the land . . . . . . . . . . . . . . . . . 561
318BI Petroleum lease application for part of the land . . . . . . . . . . . . . . . . 562
318BJ No petroleum lease application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 562
Subdivision 8--Deciding mining lease
318BK Application of sdiv 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 562
318BL Additional criteria for recommending conditions or term . . . . . . . . 563
318BM Power to determine relinquishment condition . . . . . . . . . . . . . . . . . 563
46
Petroleum and Gas (Production and Safety) Bill 2004
318BN Publication of outcome of application . . . . . . . . . . . . . . . . . . . . . . . 564
Division 3--Obtaining coal mining lease or oil shale mining lease over
land in area of authority to prospect (by or jointly with, or with the consent
of, authority to prospect holder)
318BO Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565
318BP Additional requirements for making application. . . . . . . . . . . . . . . . 565
318BQ Requirement to split application if it relates to petroleum
lease and authority to prospect not held by same person. . . . . . . . . . 566
318BR Power to split application if it includes other land . . . . . . . . . . . . . . 566
318BS Power to split application at applicant's request . . . . . . . . . . . . . . . . 567
318BT Priority for earlier petroleum lease application or proposed
application ..................................... 567
318BU Additional criteria for recommending conditions or term . . . . . . . . 567
Division 4--Coal mining lease and oil shale mining lease applications in
response to Petroleum and Gas (Production and Safety) Act preference
decision
318BV Additional ground for refusing application . . . . . . . . . . . . . . . . . . . 568
Division 5--Obtaining coal mining lease or oil shale mining lease over
land in area of petroleum lease (other than by or jointly with petroleum
lease holder)
318BW Application of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569
318BX Additional requirements for making application . . . . . . . . . . . . . . . 569
318BY Power to split application if it includes other land . . . . . . . . . . . . . . 570
318BZ Power to split application at applicant's request . . . . . . . . . . . . . . . . 570
318C Notice to petroleum lease holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570
318CA Petroleum lease holder's obligation to negotiate . . . . . . . . . . . . . . . 570
318CB Restriction on issuing certificate of public notice and additional
requirements for grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571
Division 6--Obtaining coal mining lease or oil shale mining lease over
land in area of petroleum lease (by or jointly with petroleum lease holder)
318CC Application of div 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572
318CD Additional requirements for making application . . . . . . . . . . . . . . . 573
318CE Power to split application if it includes other land . . . . . . . . . . . . . . 573
318CF Power to split application at applicant's request . . . . . . . . . . . . . . . . 574
318CG Additional criteria for recommending conditions. . . . . . . . . . . . . . . 574
47
Petroleum and Gas (Production and Safety) Bill 2004
Division 7--Additional provisions for coal and oil shale
exploration tenements
Subdivision 1--Grant of coal or oil shale exploration tenement in area of
authority to prospect
318CH Provisions for coal or oil shale exploration tenement. . . . . . . . . . . . 574
Subdivision 2--Restriction on authorised activities on petroleum
lease land
318CI Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575
Subdivision 3--Conditions
318CJ Notice of grant to authority to prospect holder or applicant . . . . . . . 575
318CK Compliance with obligations under Petroleum and Gas
(Production and Safety) Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576
Division 8--Additional provisions for coal mining leases and oil shale
mining leases
Subdivision 1--Entitlement to coal seam gas
318CL Application of div 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576
318CM Limited entitlement to mine coal seam gas . . . . . . . . . . . . . . . . . . . 576
318CN Use that may be made under mining lease of incidental coal
seam gas .......................................... 577
318CO Restriction on flaring or venting of incidental coal seam gas. . . . . . 578
Subdivision 2--Provisions for mining coal seam gas from coextensive
natural underground reservoirs
318CP Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579
318CQ Coordination arrangement may be made about mining or
production from reservoir . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579
318CR Restriction on coal seam gas mining from reservoir. . . . . . . . . . . . . 580
318CS Dispute resolution by tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580
Subdivision 3--Conditions
318CT Continuing requirement for coordination arrangement for
particular coal or oil shale mining leases. . . . . . . . . . . . . . . . . . . . . . 581
318CU Obligation to measure and record coal seam gas mined. . . . . . . . . . 582
318CV Obligation to lodge annual reports . . . . . . . . . . . . . . . . . . . . . . . . . . 583
318CW Compliance with obligation to negotiate with petroleum
lease applicant ..................................... 584
318CX Relinquishment report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 584
318CY Surrender report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585
48
Petroleum and Gas (Production and Safety) Bill 2004
318CZ Cessation of relinquishment condition for area not
overlapping with authority to prospect . . . . . . . . . . . . . . . . . . . . . . . 585
Subdivision 4--Amendment of relinquishment condition by application
318D Application of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586
318DA Conditions for applying to amend relinquishment condition . . . . . . 586
318DB Authority to prospect holder's obligation to negotiate . . . . . . . . . . . 586
318DC Requirements for making application. . . . . . . . . . . . . . . . . . . . . . . . 587
318DD Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588
318DE Submissions by authority to prospect holder . . . . . . . . . . . . . . . . . . 588
318DF Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . 589
318DG Deciding amendment application . . . . . . . . . . . . . . . . . . . . . . . . . . . 589
Subdivision 5--Restriction on recommendation to amend other conditions
318DH Interests of relevant petroleum tenure holder to be considered . . . . 590
Subdivision 6--Renewals
318DI General additional provisions for renewal application . . . . . . . . . . . 590
318DJ Applied provisions for renewal application . . . . . . . . . . . . . . . . . . . . 590
318DK Mining lease taken to have development plan until renewal
application decided ................................. 592
Subdivision 7--Consolidations
318DL Restriction on consolidation applications . . . . . . . . . . . . . . . . . . . . . 592
318DM Additional requirements for making consolidation application. . . . 592
318DN Deciding whether to approve proposed development plan. . . . . . . . 593
Subdivision 8--Restriction on assignment or subletting
318DO Requirement for coordination arrangement to assign or sublet
mining lease in area of petroleum lease. . . . . . . . . . . . . . . . . . . . . . . 593
Division 9--Development plans for coal mining leases and oil shale
mining leases
Subdivision 1--General provisions about development plans
318DP Function and purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594
318DQ Requirement to have development plan . . . . . . . . . . . . . . . . . . . . . . 594
318DR Obligation to comply with development plan. . . . . . . . . . . . . . . . . . 595
Subdivision 2--Requirements for proposed initial development plans
318DS Operation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595
318DT General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595
49
Petroleum and Gas (Production and Safety) Bill 2004
318DU Plan period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596
318DV Statement about interests of relevant petroleum tenure holder. . . . . 597
318DW Requirement to optimise use of incidental coal seam gas . . . . . . . . 597
318DX Consistency with petroleum lease development plan and
relevant coordination arrangement. . . . . . . . . . . . . . . . . . . . . . . . . . . 597
Subdivision 3--Approval of proposed initial development plans
318DY Application of sdiv 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597
318DZ Ministerial approval of proposed plan . . . . . . . . . . . . . . . . . . . . . . . 597
318E Amendment of proposed plan before approval . . . . . . . . . . . . . . . . . 598
318EA Deciding whether to approve proposed plan. . . . . . . . . . . . . . . . . . . 598
Subdivision 4--Approval of proposed later development plans
318EB Obligation to lodge proposed later development plan. . . . . . . . . . . . 599
318EC Consequence of failure to comply with notice to lodge
proposed later development plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
318ED Later development plan requirements . . . . . . . . . . . . . . . . . . . . . . . . 600
318EE Mining lease taken to have development plan until decision on
whether to approve proposed later development plan . . . . . . . . . . . . 601
318EF Criteria for deciding whether to approve proposed plan . . . . . . . . . . 602
318EG Power to require partial surrender application . . . . . . . . . . . . . . . . . 602
318EH Steps after, and taking effect, of decision . . . . . . . . . . . . . . . . . . . . . 603
Subdivision 5--Appeals
318EI Right of appeal against cancellation, deferral or refusal . . . . . . . . . . 603
Division 10--Confidentiality of information
318EJ Application of div 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604
318EK Confidentiality obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605
318EL Civil remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605
961 Renumbering of pt 7A, ss 318A318M . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605
962 Amendment of s 318EO, as renumbered under this Act (What is a
"notifiable road use"). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
963 Amendment of s 318ES, as renumbered under this Act (Liability
to compensate road authority) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
964 Amendment of s 318EW, as renumbered under this Act (Tribunal
review of compensation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
965 Amendment of s 318EY, as renumbered under this Act
(Compensation not affected by change in administration or holder) . . . . . . 607
50
Petroleum and Gas (Production and Safety) Bill 2004
966 Amendment of s 736 (Exclusion of pt 7A for continuance of
existing notifiable road uses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607
967 Amendment of s 417 (Regulation-making power) . . . . . . . . . . . . . . . . . . . . 607
968 Insertion of new pt 19, div 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607
Division 6--Transitional provisions for Petroleum and Gas (Production
and Safety) Act 2004
Subdivision 1--Preliminary
739 Definitions for div 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 608
Subdivision 2--Provisions for special agreement Acts
740 Application of div 6 to special coal mining lease under special
agreement Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611
741 Unfinished special coal mining lease applications . . . . . . . . . . . . . . 611
742 Division 6 prevails over special agreement Acts . . . . . . . . . . . . . . . . 611
743 No compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612
Subdivision 3--Provision for section 3A
744 Application of s 3A to existing mining tenements. . . . . . . . . . . . . . . 612
Subdivision 4--Unfinished coal or oil shale mining lease applications for
land in area of petroleum tenure
745 Application of pt 7AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612
Subdivision 5--Provisions for existing coal mining leases
746 Clarification provision for coal seam gas. . . . . . . . . . . . . . . . . . . . . . 613
747 Continuation of particular rights relating to coal seam gas under
mineral hydrocarbon mining leases . . . . . . . . . . . . . . . . . . . . . . . . . . 613
748 Restriction on flaring or venting coal seam gas . . . . . . . . . . . . . . . . . 615
749 Deferral of ss 318CN(2) and 318CO for particular existing coal
mining lease holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615
750 Deferral of s 318CR(1) for existing coal mining lease holders . . . . . 615
Subdivision 6--Modified application of section 318CI for particular
existing exploration tenements overlapping with petroleum lease
751 Application of sdiv 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615
752 Modified application of s 318CI until 3 months after commencement 616
753 Power to relinquish if activity restricted . . . . . . . . . . . . . . . . . . . . . . 616
Subdivision 7--Particular provision for existing mineral development
licences that overlap with a Petroleum Act lease
754 Application of sdiv 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617
51
Petroleum and Gas (Production and Safety) Bill 2004
755 Substituted restriction on authorised activities . . . . . . . . . . . . . . . . . 618
Subdivision 8--Development plans
756 Application of sdiv 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 618
757 Deferral of obligation to comply with development plan . . . . . . . . . 619
758 Obligation to lodge proposed development plan . . . . . . . . . . . . . . . . 619
759 Application of pt 7AA, div 9, sdiv 3 for approval of proposed plan . 620
760 Additional requirement for proposed development plan for
mineral hydrocarbon mining lease. . . . . . . . . . . . . . . . . . . . . . . . . . . 620
761 Additional condition for proposed development plan for mineral
hydrocarbon mining lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621
762 Omission of particular conditions to be superseded by
development plan ................................ 622
763 Development plan requirements for renewal applications if no
current development plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622
969 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623
PART 22--AMENDMENT OF NATIVE TITLE (QUEENSLAND)
ACT 1993
970 Act amended in pt 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626
971 Amendment of s 4 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626
972 Amendment of s 17 (Confirmation of ownership of natural resources etc.) . 626
973 Amendment of s 144 (Declaration about compulsory acquisitions) . . . . . . . 626
PART 23--AMENDMENT OF QUEENSLAND INTERNATIONAL
TOURIST CENTRE AGREEMENT ACT REPEAL ACT 1989
974 Act amended in pt 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
975 Amendment of s 18 (Operation of Acts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
PART 24--AMENDMENT OF THIESS PEABODY COAL PTY.
LTD. AGREEMENT ACT 1962
976 Act amended in pt 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
977 Insertion of new s 4B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
4B Termination of cl 18 of agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . 627
PART 25--AMENDMENT OF TORRES STRAIT ISLANDER
LAND ACT 1991
978 Act amended in pt 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628
979 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628
980 Amendment of s 85 (Royalties in relation to mining on Torres
Strait Islander land) ...................................... 628
52
Petroleum and Gas (Production and Safety) Bill 2004
PART 26--AMENDMENT OF VALUATION OF LAND ACT 1944
981 Act amended in pt 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
982 Amendment of s 2 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
983 Amendment of s 26 (Valuation of petroleum leases) . . . . . . . . . . . . . . . . . . 629
PART 27--AMENDMENT OF WATER ACT 2000
984 Act amended in pt 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
985 Amendment of s 203 (Definition for pt 6). . . . . . . . . . . . . . . . . . . . . . . . . . . 629
986 Amendment of s 206 (Applying for a water licence) . . . . . . . . . . . . . . . . . . 630
987 Insertion of new s 206A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 631
206A Additional requirements for application by petroleum tenure holder 631
988 Amendment of s 209 (Applications that may be decided without
public notice) ......................................... 631
989 Amendment of s 213 (Contents of water licence) . . . . . . . . . . . . . . . . . . . . . 632
990 Amendment of s 214 (Conditions of water licence) . . . . . . . . . . . . . . . . . . . 632
991 Amendment of s 222 (Transferring water licence to another person). . . . . . 632
992 Amendment of s 227 (Cancelling water licence) . . . . . . . . . . . . . . . . . . . . . 633
993 Amendment of sch 4 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633
SCHEDULE 1 . . . . . . . . . . . . . . . . . . . . . . . . 635
REVIEWS AND APPEALS
SCHEDULE 2 . . . . . . . . . . . . . . . . . . . . . . . . 640
DICTIONARY
2004
A BILL
FOR
An Act about exploring for, recovering and transporting by pipeline,
petroleum and fuel gas and ensuring the safe and efficient
carrying out of those activities, and for other purposes
s1 54 s3
Petroleum and Gas (Production and Safety) Bill 2004
The Parliament of Queensland enacts-- 1
CHAPTER 1--PRELIMINARY 2
PART 1--INTRODUCTION 3
1 Short title 4
This Act may be cited as the Petroleum and Gas (Production and Safety) 5
Act 2004. 6
2 Commencement 7
(1) Section 968, to the extent it inserts part 19, division 6, subdivisions 1 8
and 2 in the Mineral Resources Act commences on the date of assent.1 9
(2) Otherwise, this Act commences on a day to be fixed by proclamation. 10
PART 2--PURPOSE AND APPLICATION OF ACT 11
3 Purpose of Act 12
(1) The purpose of this Act is to facilitate and regulate the carrying out of 13
responsible petroleum activities and the development of a safe, efficient 14
and viable petroleum and fuel gas industry, in a way that-- 15
(a) manages the State's petroleum resources-- 16
(i) in a way that has regard to the need for ecologically 17
sustainable development; and 18
1 Section 968 (Insertion of new pt 19, div 6)
Mineral Resources Act, inserted part 19, division 6 (Transitional provisions for
Petroleum and Gas (Production and Safety) Act 2004), subdivisions 1 (Preliminary)
and 2 (Provisions for special agreement Acts)
s3 55 s3
Petroleum and Gas (Production and Safety) Bill 2004
(ii) for the benefit of all Queenslanders; and 1
(b) enhances knowledge of the State's petroleum resources; and 2
(c) creates an effective and efficient regulatory system for the 3
carrying out of petroleum activities and the use of petroleum and 4
fuel gas; and 5
(d) encourages and maintains an appropriate level of competition in 6
the carrying out of petroleum activities; and 7
(e) creates an effective an efficient regulatory system for the 8
construction and operation of transmission pipelines; and 9
(f) ensures petroleum activities are carried on in a way that 10
minimises conflict with other land uses; and 11
(g) optimises coal seam gas production and coal or oil shale mining 12
in a safe and efficient way; and 13
(h) appropriately compensates owners or occupiers of land; and 14
(i) encourages responsible land management in the carrying out of 15
petroleum activities; and 16
(j) facilitates constructive consultation with people affected by 17
activities authorised under this Act; and 18
(k) regulates and promotes the safety of persons in relation to 19
operating plant.2 20
(2) In this section-- 21
"petroleum activities" means-- 22
(a) the exploration, distillation, production, processing, refining, 23
storage and transport of petroleum; and 24
(b) the distillation, production, processing, refining, storage and 25
transport of fuel gas; and 26
(c) authorised activities for petroleum authorities; and 27
(d) other activities authorised under this Act for petroleum 28
authorities. 29
2 For what is operating plant, see section 670 (What is an "operating plant").
s4 56 s6
Petroleum and Gas (Production and Safety) Bill 2004
4 Act binds all persons 1
(1) This Act binds all persons, including the State, and, to the extent the 2
legislative power of the Parliament permits, the Commonwealth and the 3
other States. 4
(2) However, the Commonwealth or a State can not be prosecuted for an 5
offence against this Act. 6
5 Application of Act to coastal waters of the State 7
(1) This Act applies to the coastal waters of the State as if the coastal 8
waters of the State were part of the State. 9
(2) However, this Act does not apply to the adjacent area under the 10
Petroleum (Submerged Lands) Act 1982. 11
6 Relationship with Mineral Resources Act 12
(1) This section does not apply to a coal or oil shale mining tenement. 3
13
(2) The Mineral Resources Act does not limit or otherwise affect-- 14
(a) the power to grant or renew a petroleum authority over land (the 15
"overlapping land") in the area of a mining tenement; or 16
(b) a petroleum authority already granted over land (also the 17
"overlapping land") in the area of an existing mining tenement. 18
(3) However-- 19
(a) if the petroleum authority is a pipeline licence or petroleum 20
facility licence--it is subject to section 400 or 440;4 and 21
(b) if the petroleum authority is another type of petroleum 22
authority--it is subject to subsections (4) to (6). 23
(4) If the mining tenement is a mining lease (other than a transportation 24
mining lease), an authorised activity for the petroleum authority may be 25
carried out on the overlapping land only if-- 26
3 See also the Mineral Resources Act, section 3A (Relationship with petroleum
legislation).
For the relationship between this Act and the Mineral Resources Act in relation to
coal or oil shale mining tenements, see chapter 3 (Provisions for coal seam gas).
4 Sections 400 and 440 (Restriction if there is an existing mining lease)
s6 57 s6
Petroleum and Gas (Production and Safety) Bill 2004
(a) the mining lease holder has agreed in writing to the carrying out 1
of the activity; and 2
(b) a copy of the agreement has been lodged at the following office 3
(the "relevant office")-- 4
(i) the office of the department for lodging the agreement, as 5
stated in a gazette notice by the chief executive; 6
(ii) if no office is gazetted under subparagraph (i)--the office of 7
the chief executive; and 8
(c) the agreement is still in force. 9
(5) If the mining tenement is an exploration permit, mineral development 10
licence or transportation mining lease and the petroleum authority is an 11
authority to prospect, an authorised activity for the petroleum authority 12
may be carried out on the overlapping land only if-- 13
(a) the mining tenement holder has agreed in writing to the carrying 14
out of the activity, a copy of the agreement has been lodged at the 15
relevant office and the agreement is still in force; or 16
(b) carrying out the activity does not adversely affect the carrying 17
out of an authorised activity for the tenement that has already 18
started. 19
(6) If the mining tenement is an exploration permit or a mineral 20
development licence and the petroleum authority is a petroleum lease, an 21
authorised activity for the mining tenement may be carried out on the 22
overlapping land only if-- 23
(a) the petroleum lease holder has agreed in writing to the carrying 24
out of the activity; and 25
(b) a copy of the agreement has been lodged at the relevant office; 26
and 27
(c) the agreement is still in force. 28
(7) In this section-- 29
"transportation mining lease" means a mining lease granted under the 30
Mineral Resources Act, section 316.5 31
5 Mineral Resources Act, section 316 (Mining lease for transportation through land)
s7 58 s9
Petroleum and Gas (Production and Safety) Bill 2004
7 Act does not affect other rights or remedies 1
(1) Subject to sections 294 and 856 and chapter 3, part 8, this Act does 2
not affect or limit a civil right or remedy that exists apart from this Act, 3
whether at common law or otherwise.6 4
(2) Without limiting subsection (1), compliance with this Act does not 5
necessarily show that a civil obligation that exists apart from this Act has 6
been satisfied or has not been breached. 7
(3) In addition, a breach of an obligation under this Act does not, of 8
itself, give rise to an action for breach of statutory duty or another civil 9
right or remedy. 10
(4) This Act does not limit a court's powers under the Penalties and 11
Sentences Act 1992 or another law. 12
8 Native title 13
(1) This section applies for applying this Act to land where native title 14
exists. 15
(2) A native title holder within the meaning of the Commonwealth 16
Native Title Act, section 2247 has the procedural and other rights that the 17
holder has under that Act. 18
(3) Subsection (2) applies despite any other provision of this Act. 19
PART 3--INTERPRETATION 20
Division 1--Dictionary 21
9 Definitions 22
The dictionary in schedule 2 defines particular words used in this Act. 23
6 Sections 294 (Responsibility for well or bore after decommissioning) and 856
(Protection from liability for particular persons)
Chapter 3, part 8 (Confidentiality of information)
7 Commonwealth Native Title Act, section 224 (Native title holder)
s 10 59 s 10
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Key definitions 1
10 Meaning of "petroleum" 2
(1) "Petroleum" is-- 3
(a) a substance consisting of hydrocarbons that occur naturally in the 4
earth's crust; or 5
(b) a substance necessarily extracted or produced as a by-product of 6
extracting or producing a hydrocarbon mentioned in 7
paragraph (a); or 8
(c) a fluid that-- 9
(i) is extracted or produced from coal or oil shale by a chemical 10
or thermal process or that is a by-product of that process; 11
and 12
(ii) consists of, or includes, hydrocarbons; or 13
(d) another substance prescribed under a regulation, consisting of, or 14
including, hydrocarbons; or 15
(e) a gas, that occurs naturally in the earth's crust, as prescribed 16
under a regulation. 17
(2) A substance mentioned in subsection (1)(c) is a "gasification or 18
retorting product". 19
(3) To remove any doubt, it is declared that "petroleum" does not 20
include any of the following-- 21
(a) alginite; 22
(b) coal; 23
(c) lignite; 24
(d) peat; 25
(e) oil shale;8 26
(f) torbanite; 27
(g) water. 28
8 See section 300 (What is "oil shale").
s 11 60 s 11
Petroleum and Gas (Production and Safety) Bill 2004
(4) A substance does not cease to be petroleum merely because it is 1
injected or reinjected into a natural underground reservoir. 2
(5) To remove any doubt, it is declared that, for this Act and petroleum 3
authorities under it, this section preserves, for this Act, the effect of 4
section 150(2) and (3) of the 1923 Act.9 5
(6) In this section-- 6
"hydrocarbon" means a hydrocarbon in a gaseous, liquid, or solid state. 7
11 Meaning of "LPG" and "fuel gas" 8
(1) "LPG", also called `LP gas' and `liquefied petroleum gas', is a 9
substance that-- 10
(a) is in a gaseous state at standard temperature and pressure; and 11
(b) is more than half propane, propylene (also called propene) or 12
butane, in any combination; and 13
(c) has been processed to be suitable for use for any other purpose.10 14
(2) "Fuel gas" is-- 15
(a) LPG; or 16
(b) processed natural gas; or 17
(c) another substance prescribed under a regulation that is similar to 18
LPG or processed natural gas. 19
(3) In this section-- 20
"processed natural gas" means a substance that-- 21
(a) is in a gaseous state at standard temperature and pressure; and 22
(b) consists of naturally occurring hydrocarbons and other 23
substances; and 24
(c) is more than half, by volume, methane; and 25
(d) has been processed to be suitable for use by consumers of fuel 26
gas. 27
9 Section 150 of the 1923 Act (Declaration about certain permits, leases and licences)
10 See section 619 (Who is a "consumer" of fuel gas).
s 12 61 s 14
Petroleum and Gas (Production and Safety) Bill 2004
"standard temperature and pressure" means an absolute pressure 1
of 101.325 kPa at a temperature of 15ºC. 2
12 What is a "prescribed storage gas" 3
A "prescribed storage gas" is any of the following-- 4
(a) carbon dioxide; 5
(b) a gas associated with, or that results from, petroleum production; 6
7
Example--
8
fuel gas produced at a processing plant
(c) another gas prescribed under a regulation as being suitable for 9
storage in a natural underground reservoir. 10
11
Example of gases suitable for storage in a natural underground reservoir--
12
gases produced from a waste disposal tip
13 What is a "natural underground reservoir" 13
(1) A "natural underground reservoir" is a part of a geological 14
formation or structure-- 15
(a) in which petroleum or another gas prescribed under a regulation 16
has accumulated; or 17
(b) that is suitable to store petroleum or a prescribed storage gas. 18
(2) A geological formation or structure mentioned in subsection (1) does 19
not cease to be a natural underground reservoir merely because it has been 20
modified for petroleum production or storage or to store a prescribed 21
storage gas. 22
(3) In this section-- 23
"geological formation" includes a coal seam. 24
14 What is "exploring" for petroleum 25
"Exploring", for petroleum, is carrying out an activity for the purpose of 26
finding petroleum or natural underground reservoirs. 27
28
Examples--
29
· conducting a geochemical, geological or geophysical survey
s 15 62 s 17
Petroleum and Gas (Production and Safety) Bill 2004
1
·. drilling a well
2
· carrying out testing in relation to a well
3
· taking a sample for chemical or other analysis
15 When petroleum is "produced" 4
(1) For this Act, petroleum is "produced" when it is recovered or 5
released to ground level from a natural underground reservoir in which it 6
has been contained or from which it is extracted. 7
(2) If, under the Mineral Resources Act, section 318CM,11 a coal mining 8
lease or oil shale mining lease holder mines incidental coal seam gas, for 9
this Act, the lease holder "produces" it. 10
16 What is a "pipeline" 11
(1) A "pipeline" is a pipe, or system of pipes, for transporting petroleum 12
or fuel gas. 13
(2) A reference to a "pipeline" includes-- 14
(a) a part of the pipeline; and 15
(b) a thing connected to or associated with the pipeline that is 16
necessary for its operation. 17
18
Examples of things that may be included in a reference to a pipeline--
19
· meter stations, scraper stations, valve stations, pumping stations or
20
compressor stations
21
· plant and equipment, machinery and tanks
22
· corrosion protection apparatus
23
· communications equipment and towers
17 What is a "petroleum facility" 24
(1) A "petroleum facility" is a facility for the distillation, processing, 25
refining, storage or transport of petroleum, other than a distribution 26
pipeline. 27
28
Examples of things that may be a petroleum facility--
29
· a storage depot
11 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)
s 18 63 s 18
Petroleum and Gas (Production and Safety) Bill 2004
1
· a meter station
2
· a petroleum processing plant
3
· an oil refinery
4
· an LPG separation plant
(2) However, the following facilities are not a petroleum facility-- 5
(a) a facility constructed or operated under the-- 6
(i) Amoco Australia Pty. Limited Agreement Act 1961; or 7
(ii) Ampol Refineries Limited Agreement Act 1964; 8
(b) a facility for the distillation, processing, refining, storage or 9
transport of petroleum authorised under a-- 10
(i) petroleum lease or pipeline licence under this Act; or 11
(ii) 1923 Act petroleum tenure. 12
18 Types of authority under Act 13
(1) The following are the types of authority under this Act-- 14
(a) an "authority to prospect"-- 15
(i) granted under section 41;12 or 16
(ii) continued in force under section 83 or 119;13 or 17
(iii) renewed under section 84; 14
18
(b) a "petroleum lease"-- 19
(i) granted under section 120, 132, 340 or 356 or chapter 15;15 20
or 21
(ii) continued in force under section 163; or 22
(iii) renewed under section 164; 23
12 Section 41 (Deciding whether to grant authority to prospect)
13 Section 83 (Continuing effect of authority for renewal application) or 119
(Continuing effect of authority to prospect for ATP-related application)
14 Section 84 (Deciding application)
15 Section 120 (Right to grant if requirements for grant met), 132 (Deciding whether to
grant petroleum lease), 340 (Right to grant if particular requirements met) or 356
(Right to grant if particular requirements met)
Chapter 15 (Repeal and transitional provisions)
s 18 64 s 18
Petroleum and Gas (Production and Safety) Bill 2004
(c) a "data acquisition authority", granted under section 178; 1
(d) a "water monitoring authority" granted under section 192; 2
(e) a "survey licence"-- 3
(i) granted under section 396; or 4
(ii) continued in force under section 481; or 5
(iii) renewed under section 482; 6
(f) a "pipeline licence"-- 7
(i) granted under section 410; or 8
(ii) continued in force under section 481; or 9
(iii) renewed under section 482; 10
(g) a "petroleum facility licence"-- 11
(i) granted under section 446; or 12
(ii) continued in force under section 481; or 13
(iii) renewed under section 482; 14
(h) a "gas work licence" granted under section 728(1)(a); 16
15
(i) a "gas work authorisation" granted under section 728(1)(b). 16
(2) The authorities, other than a gas work licence or gas work 17
authorisation, are collectively referred to as a "petroleum authority". 18
(3) Authorities to prospect and petroleum leases are collectively referred 19
to as a "petroleum tenure". 20
16 Section 163 (Continuing effect of lease for renewal application)
Section 164 (Deciding renewal application)
Section 178 (Deciding application for data acquisition authority)
Section 192 (Deciding application for water monitoring authority)
Section 396 (Deciding survey licence application)
Section 410 (Deciding whether to grant licence)
Section 446 (Deciding whether to grant licence)
Section 481 (Continuing effect of licence for renewal application)
Section 482 (Deciding application)
Section 728 (Chief inspector's power to issue)
s 19 65 s 21
Petroleum and Gas (Production and Safety) Bill 2004
(4) Survey licences, pipeline licences17 and petroleum facility licences 1
are collectively referred to as a "licence". 2
19 Who is an "eligible person" 3
An "eligible person" is-- 4
(a) an adult; or 5
(b) a company or a registered body under the Corporations Act; or 6
(c) a government owned corporation. 7
20 What are the "conditions" of a petroleum authority 8
(1) The "conditions" of a petroleum authority are-- 9
(a) the conditions stated in it from time to time; and 10
(b) the authority holder's obligations under chapters 2 to 5; and 11
(c) any condition of the authority under chapter 2, 3 or 5; and 12
(d) a condition that an authority holder must ensure each person 13
acting for the holder who carries out an authorised activity for the 14
authority complies with its conditions to the extent they apply to 15
the carrying out of the activity.18 16
(2) A condition mentioned in subsection (1)(b) or (c) is a "mandatory 17
condition" of the authority. 18
21 What are the "provisions" of a petroleum authority 19
(1) A reference in this Act to an authority under this Act includes a 20
reference to its provisions. 21
(2) A reference in this Act to the provisions of the authority is a reference 22
to its mandatory or other conditions and any thing written in it. 23
17 For the types of pipeline licence, see section 404 (Licence types--locality or point
to point).
18 For who may carry out an authorised activity for the holder, see section 563 (Who
may carry out authorised activity for petroleum authority holder).
s 22 66 s 23
Petroleum and Gas (Production and Safety) Bill 2004
22 What is an "authorised activity" 1
(1) An "authorised activity", for a petroleum authority, is an activity 2
that its holder is, under this Act or the authority, entitled to carry out in 3
relation to the authority. 4
5
Note--
6
1. The provisions of the authority may restrict the carrying out of authorised
7
activities. See sections 42, 85, 123, 165, 178, 396, 412, 447, 484 and 790(3).19
8
2. The carrying out of authorised activities is subject to the restrictions and the
9
authority holder's rights and obligations under chapters 2 to 5. See section 562.20
10
3. For who may carry out an authorised activity for a petroleum authority holder, see
11
section 563.21
(2) An "authorised activity", for a coal or oil shale mining tenement, is 12
an activity that its holder is, under the Mineral Resources Act or the 13
tenement, entitled to carry out or exercise in relation to the tenement. 14
23 What is a "work program" for an authority to prospect 15
(1) The "work program" for an authority to prospect is its current 16
initial or later work program approved under chapter 2, part 1, division 3, 17
as amended from time to time under chapter 2, part 1, division 3, 18
subdivision 6.22 19
(2) For subsection (1), the work program is current if the period to which 20
the program applies has not ended.23 21
19 Sections 42 (Provisions of authority to prospect), 85 (Provisions and term of
renewed authority), 123 (Provisions of petroleum lease), 165 (Provisions and term
of renewed lease), 178 (Deciding application for data acquisition authority), 396
(Deciding survey licence application), 412 (Provisions of licence), 447 (Provisions
of licence), 484 (Provisions and term of renewed licence) and 790 (Types of
noncompliance action that may be taken)
20 Section 562 (General restriction on carrying out authorised activities)
21 Section 563 (Who may carry out authorised activity for petroleum authority holder)
22 Chapter 2, part 1, division 3, subdivision 6 (Amending work programs)
23 See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
See also sections 83(4) (Continuing effect of authority for renewal application), and
91 (Inclusion of evaluation program in work program).
s 24 67 s 26
Petroleum and Gas (Production and Safety) Bill 2004
24 What is a "development plan" for a petroleum lease 1
(1) The "development plan" for a petroleum lease is its current initial or 2
later development plan approved under chapter 2, part 2, division 4. 3
(2) For subsection (1), the development plan is current if the period to 4
which the plan applies has started and has not ended.24 5
Division 3--Other matters relating to interpretation 6
25 Notes in text 7
A note in the text of this Act is part of this Act. 8
PART 4--PROPERTY IN PETROLEUM 9
26 Petroleum the property of the State 10
(1) This section is subject to section 28 and chapter 2, part 6, 11
division 3.25 12
(2) All petroleum as follows is, and always has been, the property of the 13
State-- 14
(a) petroleum on the surface of land, if it was produced in the State; 15
(b) petroleum in a natural underground reservoir in the State, other 16
than petroleum in the reservoir produced outside the State and 17
injected or reinjected into the reservoir. 18
(3) To remove any doubt, it is declared that-- 19
(a) a person does not acquire any property in petroleum merely 20
because the person discovers petroleum in a natural underground 21
reservoir; and 22
24 See also section 146 (Petroleum lease taken to have development plan until decision
on whether to approve proposed development plan).
25 Chapter 2, part 6, division 3 (Provisions for stored petroleum or prescribed gas after
petroleum lease ends)
s 27 68 s 27
Petroleum and Gas (Production and Safety) Bill 2004
(b) subsection (2)(a) applies whether or not the land is freehold or 1
other land; and 2
(c) subsection (2)(b) applies whether or not the natural underground 3
reservoir is in or under freehold or other land. 4
(4) This section applies despite any other Act, grant, title or other 5
document in force from the commencement of this section. 6
(5) In this section-- 7
"the State" does not include any of the adjacent area under the Petroleum 8
(Submerged Lands) Act 1982. 9
27 Petroleum reservation in land grants 10
(1) This section applies to each grant under another Act, other than the 11
1923 Act, of a right-- 12
(a) relating to land that, immediately before the grant, was 13
unallocated State land as defined under the Land Act 1994; and 14
(b) that is, or was, issued on or after the commencement of the 1923 15
Act.26 16
(2) The grant is taken to contain a reservation to the State of-- 17
(a) all petroleum on or below the surface of the land; and 18
(b) the exclusive right do the following in relation to the land-- 19
(i) to enter and carry out any petroleum-related activity; 20
(ii) to authorise, under the provisions of this Act or another Act, 21
others to carry out any petroleum-related activity; 22
(iii) to regulate, under the provisions of this Act or another Act, 23
petroleum-related activities carried out by others. 24
(3) In this section-- 25
"grant", of a right, includes an authority, lease, licence, permit or other 26
instrument of tenure, however called. 27
"petroleum-related activity" means any activity that may be carried out 28
under this Act by the holder of any petroleum authority. 29
26 The 1923 Act commenced on 12 November 1923.
s 28 69 s 29
Petroleum and Gas (Production and Safety) Bill 2004
28 Property in petroleum produced 1
(1) If a person produces petroleum, it becomes the person's property-- 2
(a) if the petroleum is produced under this Act; or 3
(b) for incidental coal seam gas--if it is mined under the Mineral 4
Resources Act, section 318CM.27 5
(2) However, subsection (1) is subject to-- 6
(a) any coordination arrangement or storage agreement to which the 7
person is a party; and 8
(b) any order of the tribunal under section 116;28 and 9
(c) chapter 2, part 6, division 3;29 and 10
(d) any storage agreement to which the person is a party. 11
(3) Subsection (1) does not cease to apply merely because the petroleum 12
is injected or reinjected into a natural underground reservoir. 13
PART 5--GENERAL PROVISIONS FOR PETROLEUM 14
AUTHORITIES 15
29 Graticulation of earth's surface into "blocks" and "sub-blocks" 16
(1) A "block" is the land resulting from a notional division of the earth's 17
surface-- 18
(a) by 2 meridians of longitude 5 minutes apart, each meridian being 19
a multiple of 5 minutes of longitude from the meridian of 20
Greenwich; and 21
(b) by 2 parallels of latitude 5 minutes apart, each parallel being a 22
multiple of 5 minutes of latitude from the equator. 23
27 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)
28 Section 116 (Dispute resolution by tribunal)
29 Chapter 2, part 6, division 3 (Provisions for stored petroleum or prescribed storage
gas after petroleum lease ends)
s 30 70 s 30
Petroleum and Gas (Production and Safety) Bill 2004
(2) A "sub-block" is the land resulting from a notional division of a 1
block into 25 areas, each sub-block being bounded by 2 meridians 1 minute 2
of longitude apart and 2 parallels of latitude 1 minute of latitude apart. 3
(3) Each block and sub-block must be identified in the way approved by 4
the chief executive.30 5
30 Petroleum authority does not create an interest in land 6
The granting of a petroleum authority does not create an interest in any 7
land. 8
30 See however section 298 (Description of petroleum leases for ch 3).
s 31 71 s 31
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 2--PETROLEUM TENURES AND 1
RELATED MATTERS 2
3
Note--
4
1. For the requirement for a petroleum tenure, see section 800.31
5
2. Chapter 3 imposes requirements for and restrictions on the granting of, and
6
restrictions on authorised activities that may be carried out under, particular
7
petroleum tenures. See section 297.32
PART 1--AUTHORITIES TO PROSPECT 8
Division 1--Key authorised activities 9
31 Operation of div 1 10
(1) This division provides for the key authorised activities for an 11
authority to prospect.33 12
(2) The authorised activities may be carried out despite the rights of an 13
owner or occupier of land on which they are exercised. 14
(3) However, the carrying out of the authorised activities is subject to-- 15
(a) section 6; and 16
(b) chapter 3, part 4, division 2; and 17
(c) chapters 5 and 9; and 18
(d) the mandatory and other conditions of the authority; and 19
31 Section 800 (Restriction on petroleum tenure activities)
32 Chapter 3 (Provisions for coal seam gas)
Section 297 (Relationship with chs 2 and 5 and ch 15)
33 For other authorised activities, see part 4 (Water rights for petroleum tenures),
chapter 5, part 2, division 3 (Access to private land outside area of petroleum
authority) and part 8 (General provisions for conditions and authorised activities).
s 32 72 s 33
Petroleum and Gas (Production and Safety) Bill 2004
(e) any exclusion or restriction provided for in the authority on the 1
carrying out of the activities; and 2
(f) any other relevant Act or law.34 3
32 Exploration and testing 4
(1) The authority to prospect holder may carry out any of the following 5
activities in the area of the authority-- 6
(a) exploring for petroleum; 7
(b) testing for petroleum production; 8
(c) evaluating the feasibility of petroleum production; 9
(d) evaluating or testing natural underground reservoirs for 10
petroleum storage. 11
(2) However, the holder must not carry out any of the following-- 12
(a) extraction or production of a gasification or retorting product 13
from coal or oil shale by a chemical or thermal process; 14
(b) exploration for coal or oil shale to carry out extraction or 15
production mentioned in paragraph (a). 16
(3) The carrying out of activities mentioned in subsection (1), other than 17
exploring for petroleum, is subject to section 73.35 18
(4) The rights under subsection (1) may be exercised only by or for the 19
holder.36 20
33 Incidental activities 21
(1) The authority to prospect holder may carry out an activity 22
(an "incidental activity") in the area of the authority if carrying out the 23
34 Section 6 (Relationship with Mineral Resources Act)
Chapter 3 (Provisions for coal seam gas), part 4, division 2 (Restriction on
authorised activities on coal mining lease or oil shale mining lease land)
Chapters 5 (Common petroleum authority provisions) and 9 (Safety)
35 Section 73 (Permitted period for production or storage testing)
36 For who may exercise the rights for the holder, see section 563 (Who may carry out
authorised activity for petroleum authority holder).
s 34 73 s 34
Petroleum and Gas (Production and Safety) Bill 2004
activity is reasonably necessary for, or incidental to, an authorised activity 1
under section 32(1).37 2
3
Examples of incidental activities--
4
1. constructing or operating plant or works, including, for example, communication
5
systems, pipelines associated with petroleum testing, powerlines, roads, separation
6
plants, evaporation or storage ponds, tanks and water pipelines
7
2. constructing or using temporary structures or structures of an industrial or
8
technical nature, including, for example, mobile and temporary camps
9
3. removing vegetation for, or for the safety of, exploration or testing under
10
section 32(1)
(2) However, constructing or using a structure, other than a temporary 11
structure, for office or residential accommodation is not an incidental 12
activity.38 13
Division 2--Obtaining authority to prospect 14
Subdivision 1--Preliminary 15
34 Operation of div 2 16
(1) This division provides for a process for the granting of authorities to 17
prospect by competitive tender. 18
(2) To remove any doubt, it is declared that an authority to prospect can 19
only be granted under this division or division 8, subdivision 2.39 20
37 See also part 10 (General provisions for petroleum wells, water supply bores and
water observation bores), section 239 (Coordination arrangement overrides relevant
leases), chapter 5 (Common petroleum authority provisions) and section 20 (What
are the "conditions" of a petroleum authority).
38 For development generally, see the Integrated Planning Act 1997, chapter 3
(Integrated development assessment system (IDAS)) and schedule 9 (Development
that is exempt development for a planning scheme).
39 Division 8, subdivision 2 (Dividing authorities to prospect)
s 35 74 s 35
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Competitive tenders 1
35 Call for tenders 2
(1) The Minister may publish a gazette notice (a "call for tenders") 3
inviting tenders for an authority to prospect.40 4
(2) The call must state-- 5
(a) the proposed area of the authority; and 6
(b) that, under section 99,41 particular land may be excluded land for 7
the authority; and 8
(c) the day and time by which tenders in response to it must be made 9
(the "closing time" for the call); and 10
(d) that the tenders must be lodged before the closing time for the 11
call at the place stated in the approved form for making the 12
tender; and 13
(e) that details about each of the following are available at a stated 14
place-- 15
(i) any proposed conditions of the authority, other than 16
mandatory conditions, that are likely to impact significantly 17
on exploration in the proposed area; 18
(ii) the required program period for the initial work program for 19
the authority; 20
(iii) any criteria ("special criteria"), other than the work 21
program criteria and capability criteria, proposed to be used 22
to decide whether to grant the authority, or to decide its 23
provisions;42 24
(iv) the weight proposed to be given to each special criteria, 25
work program criteria and capability criteria. 26
(3) The call may state other relevant matters, including, for example, 27
matters relevant to the work program criteria and capability criteria. 28
40 See however chapter 3, part 3, division 1 (Exclusion of power to call for tenders).
41 Section 99 (Minister's power to decide excluded land)
See also section 100 (Minister may add excluded land).
42 For the capability and work program criteria, see sections 43 (Criteria for decisions)
and 49 (Criteria).
s 36 75 s 37
Petroleum and Gas (Production and Safety) Bill 2004
(4) The area of the authority must comply with section 98.43 1
(5) Subsection (2)(e)(i) does not limit the Minister's power under 2
section 4244 to decide conditions of the authority if it is granted. 3
36 Right to tender 4
(1) A person45 may, by a tender made under section 37, tender for a 5
proposed authority to prospect the subject of a call for tenders. 6
(2) However, the tender can not be made-- 7
(a) after the closing time for the call; or 8
(b) for only part of the area of the proposed authority. 9
37 Requirements for making tender 10
A tender for an authority to prospect must-- 11
(a) be in the approved form; and 12
(b) be lodged at-- 13
(i) the office or place for lodging tenders for proposed 14
authorities to prospect, as stated in a gazette notice by the 15
chief executive; or 16
(ii) if no office or place is gazetted under subparagraph (i)--the 17
office or place stated in the approved form; or 18
(iii) otherwise--the office of the chief executive; 19
(c) address the capability criteria;46 and 20
(d) include-- 21
(i) a statement about how and when the tenderer proposes to 22
consult with, and keep informed, each owner and occupier 23
of private or public land on which authorised activities for 24
43 Section 98 (Area of authority to prospect)
44 Section 42 (Provisions of authority to prospect)
45 See however section 41(2) (Deciding whether to grant authority to prospect).
46 For the criteria, see section 43 (Criteria for decisions).
s 38 76 s 40
Petroleum and Gas (Production and Safety) Bill 2004
the proposed authority are, or are likely to be, carried out;47 1
and 2
(ii) a proposed work program that complies with the initial 3
work program requirements;48 and 4
(e) be accompanied by the fee prescribed under a regulation. 5
38 Right to terminate call for tenders 6
(1) The Minister may, by gazette notice, terminate a call for tenders at 7
any time before deciding to grant an authority to prospect to a person who 8
has made a tender in response to the call. 9
(2) All tenders in response to the call lapse when the call is terminated. 10
(3) No amount, whether by way of compensation, reimbursement or 11
otherwise is payable by the State to any person for or in connection with 12
the termination. 13
Subdivision 3--Deciding tenders 14
39 Process for deciding tenders 15
Subject to section 43,49 any process the Minister considers appropriate 16
may be used to decide a call for tenders, including, for example, by a 17
process appointing a preferred tenderer on the tenders made in response to 18
the call. 19
40 Provisions for preferred tenderers 20
(1) The Minister may require a preferred tenderer for the call for tenders 21
to-- 22
(a) pay any amounts necessarily incurred, or to be incurred, to 23
enable the authority to prospect to be granted; and 24
47 See section 74 (Obligation to consult with particular owners and occupiers).
48 See division 3, subdivision 2 (Requirements for proposed initial work programs).
49 Section 43 (Criteria for decisions)
s 41 77 s 41
Petroleum and Gas (Production and Safety) Bill 2004
1
Example--
2
amounts required to comply with the Commonwealth Native Title Act,
3
part 2, division 3, subdivision P50
(b) to do all or any of the following within a stated reasonable 4
period-- 5
(i) pay the annual rent for the first year of the authority; 6
(ii) give, under section 488,51 security for the lease. 7
(2) If a preferred tenderer does not-- 8
(a) comply with a requirement under subsection (1); or 9
(b) do all things reasonably necessary to allow an authority to 10
prospect to be granted to the tenderer; 11
the Minister may appoint another tenderer to be the preferred tenderer. 12
41 Deciding whether to grant authority to prospect 13
(1) The Minister may, after the closing time for the call for tenders-- 14
(a) grant an authority to prospect to 1 tenderer; or 15
(b) refuse to grant any authority to prospect. 16
(2) However-- 17
(a) before deciding to grant the authority, the Minister must decide 18
whether to approve the applicant's proposed initial work program 19
for the authority;52 and 20
(b) the Minister can not grant the authority unless-- 21
(i) the tenderer is an eligible person; and 22
(ii) the proposed program has been approved; and 23
(iii) a relevant environmental authority for the authority to 24
prospect has been issued. 25
50 Commonwealth Native Title Act, part 2, division 3, subdivision P (Right to
negotiate)
51 Section 488 (Power to require security for petroleum authority)
52 See also division 3, subdivision 3 (Criteria for deciding whether to approve
proposed initial work programs).
s 42 78 s 42
Petroleum and Gas (Production and Safety) Bill 2004
42 Provisions of authority to prospect 1
(1) Each authority to prospect must state its term and area.53 2
(2) The term-- 3
(a) must be for at least the required program period for the initial 4
work program for the authority under the call for tenders; but 5
(b) must end no later than 12 years after the authority takes effect. 6
(3) The first relinquishment day must not be later than 4 years after the 7
day the authority is to take effect. 8
(4) The second and any later relinquishment days must not be later than 9
4 years after the previous relinquishment day. 10
(5) The authority may also state-- 11
(a) conditions or other provisions of the authority, other than 12
conditions or provisions that are-- 13
(i) inconsistent with the mandatory conditions for authorities to 14
prospect; or 15
(ii) the same as, or substantially the same as, or inconsistent 16
with, any relevant environmental condition for the 17
authority;54 and 18
(b) the day it takes effect; and 19
(c) relinquishment days for the authority.55 20
(6) However, the provisions of the authority may exclude or restrict the 21
carrying out of an authorised activity for the authority. 22
(7) The day of effect must not be before the day the authority is granted. 23
(8) If no day of effect is stated, the authority takes effect on the day it is 24
granted. 25
(9) If relinquishment days are not stated, its relinquishment days are 26
taken to be-- 27
(a) the day that is the fourth anniversary of the authority's day of 28
effect; and 29
53 See however section 98 (Area of authority to prospect).
54 See also section 99 (Minister's power to decide excluded land).
55 See section 65 (Relinquishment condition).
s 43 79 s 44
Petroleum and Gas (Production and Safety) Bill 2004
(b) each day during its term that is a 4 yearly interval after the day of 1
effect. 2
43 Criteria for decisions 3
(1) The matters that must be considered in deciding whether to grant an 4
authority to prospect or deciding its provisions include-- 5
(a) any special criteria; and 6
(b) the extent to which the Minister is of the opinion that the tenderer 7
is capable of carrying out authorised activities for the authority, 8
having regard to the tenderer's-- 9
(i) financial and technical resources; and 10
(ii) ability to manage petroleum exploration and production; 11
and 12
(c) the applicant's proposed initial work program.56 13
(2) The matters mentioned in subsection (1)(b) are the "capability 14
criteria". 15
(3) A person "satisfies" the capability criteria if the Minister forms the 16
opinion mentioned in subsection (1)(b). 17
44 Notice to unsuccessful tenderers 18
After a call for tenders has been decided, each tenderer not granted the 19
authority to prospect must be given notice of the decision.57 20
56 See also division 3, subdivision 3 (Criteria for deciding whether to approve
proposed initial work programs).
57 See also the Judicial Review Act 1991, section 32 (Request for statement of
reasons).
s 45 80 s 48
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Work programs 1
Subdivision 1--Function and purpose of work program 2
45 Function and purpose 3
(1) The work program for an authority to prospect gives detailed 4
information about the nature and extent of activities to be carried out under 5
the authority. 6
(2) The purposes of giving the information are to-- 7
(a) allow resource management decisions to be made; and 8
(b) ensure appropriate development of the authority. 9
Subdivision 2--Requirements for proposed initial work programs 10
46 Operation of sdiv 2 11
This subdivision provides for requirements (the "initial work program 12
requirements") for a proposed work program for a proposed authority to 13
prospect. 14
47 Program period 15
(1) The proposed program must state its period. 16
(2) The period must be the same as the required period under the relevant 17
call for tenders.58 18
48 General requirements 19
(1) The proposed program must provide for each of the following-- 20
(a) an overview of the activities proposed to be carried out under the 21
authority or proposed authority during all of its term; 22
(b) for each year of the program period-- 23
58 See section 35 (Call for tenders).
s 48 81 s 48
Petroleum and Gas (Production and Safety) Bill 2004
(i) the extent and nature of petroleum exploration and testing 1
for petroleum production proposed to be carried out during 2
the year; and 3
(ii) generally where the activities are proposed to be carried out; 4
and 5
(iii) the estimated cost of the activities; 6
(c) maps that show where the activities are proposed to be carried 7
out; 8
(d) any other information relevant to the matters mentioned in 9
section 49;59 10
(e) reasons why the program is considered appropriate; 11
(f) another matter prescribed under a regulation. 12
(2) A regulation may impose requirements about the form in which the 13
matters mentioned in subsection (1) must be given. 14
(3) In this section-- 15
"year", of the program period, means-- 16
(a) the period starting on the day the program period starts and 17
ending on the first anniversary of that day; and 18
(b) each subsequent period of 12 months or less during the program 19
period, starting on each anniversary of that day and ending on-- 20
(i) the next anniversary of that day; or 21
(ii) if the program period ends before the next anniversary--the 22
day the program period ends. 23
Subdivision 3--Criteria for deciding whether to approve proposed initial 24
work programs 25
26
Note--
27
For the requirement for approval of an initial work program, see section 41.60
59 Section 49 (Criteria)
60 Section 41 (Deciding whether to grant authority to prospect)
s 49 82 s 51
Petroleum and Gas (Production and Safety) Bill 2004
49 Criteria 1
(1) The matters that must be considered in deciding whether to approve a 2
proposed initial work program include the appropriateness of the tenderer's 3
proposed work program, having regard to each of the following-- 4
(a) the potential of the proposed area of the authority to prospect for 5
petroleum discovery; 6
(b) the extent and nature of the proposed petroleum exploration; 7
8
Examples--
9
· proposed geological, geophysical or geochemical surveying
10
· the number of petroleum wells the tenderer proposes to drill, and their
11
type
(c) when and where the tenderer proposes to carry out the 12
exploration. 13
(2) The matters mentioned in subsection (1) are the "work program 14
criteria". 15
Subdivision 4--Requirements for proposed later work programs 16
50 Operation of sdiv 4 17
This subdivision provides for requirements (the "later work program 18
requirements") for a proposed work program for an authority to 19
prospect.61 20
51 General requirements 21
The proposed program must-- 22
(a) other than in relation to the program period, comply with the 23
initial work program requirements; and 24
(b) state the extent to which the current work program for the 25
authority to prospect has been complied with; and 26
(c) if there have been any amendments to the authority or the current 27
work program, state-- 28
61 For the obligation to lodge a proposed later work program, see section 79
(Obligation to lodge proposed later work program).
s 52 83 s 54
Petroleum and Gas (Production and Safety) Bill 2004
(i) whether the changes have been incorporated in the proposed 1
program; and 2
(ii) any effect the changes have on the proposed program; and 3
(d) state the effect of any petroleum discovery on the proposed 4
program. 5
52 Program period 6
(1) The proposed program must state its period. 7
(2) The period must not be longer than-- 8
(a) if the term of the rest, or the renewed term, of the authority is less 9
than 4 years--the rest of its term; or 10
(b) if the term of the rest, or the renewed term, of the authority is 11
4 years or more, the following-- 12
(i) generally--4 years from the start of the period; 13
(ii) if the Minister approves a longer period--the longer period. 14
(3) However, the Minister can not approve a period longer than the rest 15
of the term of the authority. 16
53 Implementation of evaluation program for potential commercial 17
area 18
If, under section 91,62 an evaluation program is taken to be an additional 19
part of the existing work program for the authority to prospect, the 20
proposed program must include work necessary to implement the 21
evaluation program for the period of that program. 22
54 Later work programs for proposed new authorities 23
Proposed later work programs for an application under division 8, 24
subdivision 2,63 to divide an authority to prospect must have a combined 25
effect that is at least the effect of the work program for the original 26
authority. 27
62 Section 91 (Inclusion of evaluation program in work program).
63 Division 8, subdivision 2 (Dividing authorities to prospect)
s 55 84 s 57
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 5--Approval of proposed later work programs 1
55 Application of sdiv 5 2
This subdivision applies if, under this Act, a proposed later work 3
program is lodged for approval.64 4
56 Authority taken to have work program until decision on whether 5
to approve proposed work program 6
(1) This section applies until-- 7
(a) if the proposed program is approved--the holder is given notice 8
of the approval; or 9
(b) if approval of the proposed program is refused--when the refusal 10
takes effect.65 11
(2) Despite the ending of the program period for the current work 12
program for the authority to prospect-- 13
(a) the authority is taken to have a work program; and 14
(b) the holder may carry out any authorised activity for the authority. 15
57 Deciding whether to approve proposed program 16
(1) The Minister may approve or refuse to approve the proposed 17
program. 18
(2) The matters that must be considered in deciding whether to approve 19
the proposed program include each of the following-- 20
(a) the work program criteria and capability criteria and any special 21
criteria that applied for deciding the application for the authority 22
to prospect;66 23
64 For requirements to lodge a proposed later work program, see sections 79
(Obligation to lodge proposed later work program), 100 (Minister may add excluded
land) and 790 (Types of noncompliance action that may be taken), division 5
(Renewals) and division 8, subdivision 2 (Dividing authorities to prospect).
65 For when the decision takes effect, see section 58 (Steps after, and taking effect of,
decision).
66 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
s 58 85 s 59
Petroleum and Gas (Production and Safety) Bill 2004
(b) the extent to which the current work program has been complied 1
with; 2
(c) any amendments made to the authority or its current work 3
program, and the reasons for the changes; 4
(d) any notice under section 544,67 commercial viability report or 5
independent viability assessment for the authority. 6
(3) Also, if the authority was granted in response to a tender, any other 7
work program proposed by other tenderers for the authority must be taken 8
into account. 9
(4) However, subsection (3) applies only to the extent the other program 10
includes the period of the proposed plan. 11
58 Steps after, and taking effect of, decision 12
(1) On approval of the proposed later work program, the holder must be 13
given notice of the approval. 14
(2) On refusal to approve the later work program, the holder must be 15
given an information notice about the decision to refuse. 16
(3) An approval takes effect when the holder is given the notice or, if the 17
notice states a later day of effect, on that later day. 18
(4) A refusal does not take effect until the end of the appeal period for 19
the refusal.68 20
Subdivision 6--Amending work programs 21
59 Restrictions on amending work program 22
(1) An authority to prospect holder can not amend the period of the work 23
program for the authority. 24
67 Section 544 (Notice by petroleum tenure holder about discovery and commercial
viability)
68 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
s 60 86 s 62
Petroleum and Gas (Production and Safety) Bill 2004
(2) An authority to prospect holder may amend the work program in 1
another way only if the amendment has been approved under this 2
division.69 3
60 Applying for approval to amend 4
(1) An authority to prospect holder may apply for approval to amend the 5
work program for the authority. 6
(2) However, the application can not be made less than 20 business days 7
before the end of the period stated in the plan for carrying out work under 8
the existing work program. 9
61 Requirements for making application 10
The application must be-- 11
(a) lodged at-- 12
(i) the office of the department for lodging work program 13
amendment applications, as stated in a gazette notice by the 14
chief executive; or 15
(ii) if no office is gazetted--the office of the chief executive; 16
and 17
(b) accompanied by the fee prescribed under a regulation. 18
62 Deciding application 19
(1) If the proposed amendment-- 20
(a) does not relate to the initial work program for the authority to 21
prospect; and 22
(b) is to substitute the carrying out of an authorised activity 23
(the "original activity") with another authorised activity; 24
the Minister may approve the amendment if satisfied the other activity is at 25
least of an equivalent value to the original activity. 26
(2) Otherwise, the Minister may approve the amendment only if satisfied 27
it is necessary because of a circumstance-- 28
69 See also section 91 (Inclusion of evaluation program in work program).
s 63 87 s 63
Petroleum and Gas (Production and Safety) Bill 2004
(a) not related to-- 1
(i) the applicant's financial or technical resources or ability to 2
manage petroleum exploration; or 3
(ii) the results of exploration; and 4
(b) the happening of which is or was beyond the applicant's control; 5
and 6
(c) that could not have been prevented by a reasonable person in the 7
applicant's position. 8
(3) Also, if the amendment is approved under subsection (2), any 9
relinquishment day for the authority may be deferred for a period that 10
relates to a circumstance mentioned in subsection (2). 11
(4) A deferral under subsection (3)-- 12
(a) can not be for longer than 12 years after the authority took effect; 13
and 14
(b) does not defer any later relinquishment day for the authority. 15
(5) If, under this section, an amendment is approved, a condition 16
(an "additional relinquishment condition") may be imposed on the 17
authority requiring its holder to relinquish, by a notice lodged at the 18
following office, a stated percentage of the area of the authority on or 19
before a stated day-- 20
(a) the office of the department for lodging relinquishment notices, 21
as stated in a gazette notice by the chief executive; 22
(b) if no office is gazetted under paragraph (a)--the office of the 23
chief executive. 24
63 Steps after, and taking effect of, decision 25
(1) On approval of the proposed amendment, the holder must be given 26
notice of the approval. 27
(2) On refusal to approve the proposed amendment, the holder must be 28
given an information notice about the decision to refuse. 29
(3) An approval takes effect when the holder is given the notice or, if the 30
notice states a later day of effect, on that later day. 31
s 64 88 s 65
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Key mandatory conditions for authorities to prospect 1
Subdivision 1--Preliminary 2
64 Operation of div 4 3
This division provides for particular mandatory conditions for 4
authorities to prospect. 5
6
Note--
7
1. The following provisions also impose mandatory conditions on authorities to
8
prospect--
9
· division 1
10
· parts 4, 8 and 10
11
· sections 181 and 202
12
· chapter 3, part 4, division 4
13
· chapter 5.70
14
2. For what is a `mandatory condition', see section 20(2).71
Subdivision 2--Relinquishment condition and related provisions 15
65 Relinquishment condition 16
(1) It is a condition (the "relinquishment condition") of each authority 17
to prospect that its holder must relinquish part of its area, as provided for 18
under this subdivision-- 19
(a) on or before each of its relinquishment days; and 20
70 Division 1 (Key authorised activities)
Parts 4 (Water rights for petroleum tenures), 8 (Petroleum activities coordination)
and 10 (General provisions for petroleum wells, water supply bores and water
observation bores)
Sections 181 and 202 (Additional condition of relevant petroleum tenure)
Chapter 3 (Provisions for coal seam gas), part 4 (Additional provisions for
authorities to prospect and data acquisition authorities), division 4 (Conditions)
Chapter 5 (Common petroleum authority provisions)
71 Section 20 (What are the "conditions" of a petroleum authority)
s 66 89 s 66
Petroleum and Gas (Production and Safety) Bill 2004
(b) if section 68(3)72 applies--on the day provided for under that 1
subsection. 2
(2) However, if, under section 62(3),73 a relinquishment day for the 3
authority (the "original day") is deferred for a stated period, for the 4
relinquishment condition-- 5
(a) the relinquishment that was required on or before the original 6
day is taken to have been deferred until the end of the stated 7
period; but 8
(b) the relinquishments required under the relinquishment condition 9
on any later relinquishment days for the authority must be made 10
as if the deferral has not been granted. 11
(3) A relinquishment required under the relinquishment condition-- 12
(a) must be made by notice (the "relinquishment notice") lodged 13
at-- 14
(i) the office of the department for lodging relinquishment 15
notices, as stated in a gazette notice by the chief executive; 16
or 17
(ii) if no office is gazetted under subparagraph (i)--the office of 18
the chief executive; and 19
(b) takes effect on the day after lodgment under paragraph (a). 20
(4) This section does not prevent the holder from relinquishing, by 21
relinquishment notice, more than the part provided for under this 22
subdivision. 23
66 Part usually required to be relinquished 24
(1) This section is subject to sections 68 and 69.74 25
(2) The relinquishment for each relinquishment day must be such that by 26
that day at least 8.33% of the original notional sub-blocks of the authority 27
to prospect have been relinquished for each year that has passed since the 28
authority originally took effect. 29
72 Section 68 (Adjustments for sub-blocks that can not be counted)
73 Section 62 (Deciding application)
74 Sections 68 (Adjustments for sub-blocks that can not be counted) and 69
(Adjustment for particular potential commercial areas)
s 67 90 s 68
Petroleum and Gas (Production and Safety) Bill 2004
(3) The sub-blocks required to be relinquished under this section is 1
the "usual relinquishment". 2
67 Sub-blocks that can not be counted towards relinquishment 3
(1) The following can not be counted as sub-blocks relinquished for the 4
relinquishment condition-- 5
(a) sub-blocks relinquished under an additional relinquishment 6
condition;75 7
(b) sub-blocks in an area that, under section 101,76 has ceased to be 8
included in the area of an authority to prospect; 9
(c) the mere declaration of the sub-blocks as a potential commercial 10
area for the authority; 11
(d) sub-blocks the subject of an application for a petroleum lease or 12
potential commercial area; 13
(e) sub-blocks relinquished under a penalty relinquishment. 14
(2) To remove any doubt, it is declared that a potential commercial area 15
can be relinquished and can be counted as an area relinquished for the 16
relinquishment condition. 17
(3) In this section-- 18
"penalty relinquishment" means a relinquishment-- 19
(a) under a relinquishment requirement under section 790(4) made 20
because of a failure to comply with the relinquishment condition; 21
and 22
(b) to the extent of more than the sub-blocks required to be 23
relinquished under the relinquishment condition. 24
68 Adjustments for sub-blocks that can not be counted 25
(1) This section applies for a relinquishment day if, after taking away all 26
sub-blocks that, under section 67, can not be counted for the 27
relinquishment condition, the balance of the original notional sub-blocks of 28
75 See section 62(5) (Deciding application).
76 Section 101 (Area of authority to prospect reduced on grant of petroleum lease)
s 69 91 s 71
Petroleum and Gas (Production and Safety) Bill 2004
the authority to prospect are less than the sub-blocks required to be 1
relinquished under the usual relinquishment. 2
(2) The relinquishment condition is taken to have been complied with if 3
the authority holder gives a relinquishment notice for all of the balance. 4
(3) However, if-- 5
(a) a sub-block not counted for the relinquishment condition was the 6
subject of an application for a petroleum lease or potential 7
commercial area; and 8
(b) the result of the application is that it is refused; 9
the authority holder must, within 20 business days after the appeal period 10
for the decision to refuse, give a relinquishment notice for that sub-block. 11
69 Adjustment for particular potential commercial areas 12
If the only way to comply with the relinquishment condition is to 13
relinquish all or part of a potential commercial area for the authority, the 14
relinquishment condition is taken to be complied with if all other land in 15
the area of the authority is relinquished. 16
70 Relinquishment must be by blocks 17
(1) A relinquishment under the relinquishment condition can only be by 18
blocks. 19
(2) However, if a block contains an area that, under section 67, can not 20
be counted as a relinquishment, subsection (1) is complied with if all of the 21
rest of the land within the block within the area of the authority to prospect 22
is relinquished. 23
71 Ending of authority to prospect if all of it area relinquished 24
If all of the area of an authority to prospect is relinquished, the authority 25
ends. 26
s 72 92 s 73
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Other mandatory conditions 1
72 Restriction on flaring or venting 2
(1) An authority to prospect holder must not flare or vent petroleum in a 3
gaseous state produced under the authority unless the flaring or venting is 4
authorised under this section. 5
(2) Flaring the gas is authorised if it is not commercially or technically 6
feasible to use it-- 7
(a) commercially under the authority; or 8
(b) for an authorised activity for the authority. 9
(3) Venting the gas is authorised if-- 10
(a) it is not safe to use the gas for a purpose mentioned in 11
subsection (2)(a) or (b) or to flare it; or 12
(b) flaring it is not technically practicable. 13
73 Permitted period for production or storage testing 14
(1) Subject to section 72, an authority to prospect holder may carry 15
out-- 16
(a) testing ("production testing") for petroleum production from 17
each petroleum well in the area of the authority; and 18
(b) testing each natural underground reservoir in the area for 19
petroleum storage. 20
(2) However, it is a condition of the authority to prospect that production 21
testing may be carried out for more than 30 days from when the testing on 22
the petroleum well first starts only with the Minister's approval. 23
(3) The approval may be given on the conditions the Minister considers 24
appropriate. 25
(4) A condition may require the holder to pay petroleum royalty for 26
petroleum produced from production testing for all or part of the period 27
that starts at the end of the 30 days and ends when the approval ends. 28
s 74 93 s 76
Petroleum and Gas (Production and Safety) Bill 2004
74 Obligation to consult with particular owners and occupiers 1
(1) An authority to prospect holder must consult, or use reasonable 2
endeavours to consult, with each owner and occupier of private or public 3
land on which authorised activities for the authority are, or are likely to be, 4
carried out. 5
(2) The consultation must be about the carrying out of authorised 6
activities for the authority (including, for example, crossing access land for 7
the authority) to the extent they relate to the owners and occupiers. 8
(3) The consultation must be carried out in the way and at the times-- 9
(a) provided for in the authority; or 10
(b) if the authority does not provide for how the consultation must be 11
carried out--approved by the Minister. 12
(4) This section does not limit chapter 5, part 2 or 3.77 13
(5) A failure to comply with this section does not prevent authorised 14
activities for the authority from being carried out. 15
75 Petroleum royalty and annual rent 16
(1) An authority to prospect holder must pay the State-- 17
(a) petroleum royalty as required under chapter 6;78 and 18
(b) the annual rent, as prescribed under a regulation. 79
19
(2) The annual rent must be paid in the way, and on or before the day, 20
prescribed under a regulation. 21
76 Civil penalty for nonpayment of annual rent 22
(1) If an authority to prospect holder does not pay the annual rent as 23
required under section 75, the holder must also pay the State a civil penalty. 24
(2) The amount of the penalty is 15% of the rent. 25
(3) The penalty-- 26
77 Chapter 5, part 2 (Private land) or 3 (Public land)
78 Chapter 6 (Petroleum royalty)
79 See also section 588 (Interest on amounts owing to the State other than for
petroleum royalty).
s 77 94 s 79
Petroleum and Gas (Production and Safety) Bill 2004
(a) must be paid on the day after the last day for payment of the rent; 1
and 2
(b) is still payable even if the holder later pays the rent. 3
77 Requirement to have work program 4
The holder of an authority to prospect must have a work program for the 5
authority. 6
7
Note--
8
The only `work program' for an authority to prospect is its current initial or later work
9
program, as approved under division 3. See the definition of that term in section 23. For
10
the requirement to lodge a proposed later work program and its approval, see section 79
11
and division 3, subdivision 5.80
78 Compliance with exploration activities in work program 12
An authority to prospect holder must carry out the exploration activities 13
proposed in the work program.81 14
79 Obligation to lodge proposed later work program 15
(1) This section imposes an obligation on an authority to prospect holder 16
to lodge a proposed later work program for the authority. 17
18
Note--
19
1. For approval of the proposed program, see division 3, subdivision 5.82
20
2. If the holder wishes to renew the authority, a proposed later work program must be
21
included in the renewal application. See section 81(1).83
(2) The obligation is complied with only if the proposed later work 22
program-- 23
80 Division 3 (Work programs), subdivision 5 (Approval of proposed later work
programs)
Section 79 (Obligation to lodge proposed later work program)
81 For the minimum work commitment, see section 48(1)(b)(i) (General requirements).
See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
82 Division 3, subdivision 5 (Approval of proposed later work programs)
83 Section 81 (Conditions for renewal application)
s 79 95 s 79
Petroleum and Gas (Production and Safety) Bill 2004
(a) is lodged at-- 1
(i) the office of the department for lodging proposed later work 2
programs, as stated in a gazette notice by the chief 3
executive; 4
(ii) if no office is gazetted under subparagraph (i)--the office of 5
the chief executive; and 6
(b) complies with the later work program requirements;84 and 7
(c) is accompanied by the relevant fee. 8
(3) A proposed later work program must be lodged at least 20, but no 9
more than 60, business days before the end of the program period for the 10
current work program for the authority (the "current work program 11
period"). 12
(4) However, if before the end of the current plan period, a decision is 13
made not to approve a proposed later work program lodged under 14
subsection (3), the holder may, within the period, lodge another proposed 15
later work program. 16
(5) If the holder does not lodge any proposed later work program before 17
the end of the current plan period-- 18
(a) the holder must be given a notice requiring the holder to lodge a 19
proposed later work program for the authority within 20 business 20
days after the giving of the notice; and 21
(b) the holder must comply with the requirement. 22
(6) In this section-- 23
"relevant fee", for the lodgment of the proposed program, means-- 24
(a) if the proposed program is lodged within the time required under 25
subsection (3)--the fee prescribed under a regulation; or 26
(b) if the proposed program is lodged after the time required under 27
subsection (3)-- 28
(i) if it is lodged under subsection (4)--nil; or 29
(ii) if it is not lodged under subsection (4) and it is lodged 30
before the end of the current work program period--an 31
amount that is 10 times the prescribed fee; or 32
84 See division 3, subdivision 4 (Requirements for proposed later work programs).
s 80 96 s 81
Petroleum and Gas (Production and Safety) Bill 2004
(iii) if it is not lodged under subsection (4) and it is lodged after 1
the end of the current work program period--an amount 2
that is 20 times the prescribed fee. 3
80 Consequence of failure to comply with notice to lodge proposed 4
later work program 5
(1) If an authority to prospect holder does not comply with a requirement 6
under section 79(5)(a), the authority is cancelled. 7
(2) However, the cancellation does not take effect until the holder is 8
given a notice stating that the authority has been cancelled because of the 9
operation of subsection (1). 10
Division 5--Renewals 11
81 Conditions for renewal application 12
(1) An authority to prospect holder may apply to renew the authority 13
only if none of the following is outstanding-- 14
(a) annual rent for the authority; 15
(b) a civil penalty under section 76 for nonpayment of annual rent; 16
(c) interest payable under section 58885 on annual rent or a civil 17
penalty; 18
(d) petroleum royalty for petroleum produced under the authority 19
and any unpaid petroleum royalty interest on it; 20
(e) security required for the authority, as required under 21
section 488.86 22
(2) Also, the application can not be made-- 23
(a) more than 60 business days before the end of the term of the 24
authority; or 25
(b) after the authority has ended. 26
85 Section 588 (Interest on amounts owing to the State other than for petroleum
royalty)
86 Section 488 (Power to require security for petroleum authority)
s 82 97 s 82
Petroleum and Gas (Production and Safety) Bill 2004
82 Requirements for making application 1
(1) The application must-- 2
(a) be in the approved form; and 3
(b) be lodged at-- 4
(i) the office of the department for lodging authority to 5
prospect renewal applications, as stated in a gazette notice 6
by the chief executive; or 7
(ii) if no office is gazetted under subparagraph (i)--the office 8
stated in the approved form; or 9
(iii) otherwise--the office of the chief executive; and 10
(c) state whether or not the work program for the authority to 11
prospect has been complied with; and 12
(d) if the work program has not been complied with--state details 13
of, and the reasons for, each noncompliance; and 14
(e) include a proposed later work program for the renewed authority; 15
and 16
(f) include a statement about how and when the applicant proposes 17
to consult with, and keep informed, each owner and occupier of 18
private or public land on which authorised activities for the 19
renewed authority are, or are likely to be, carried out;87 and 20
(g) address the capability criteria; and 21
(h) include information about the matters that, under sections 84 22
and 86,88 must or may be considered in deciding the application; 23
and 24
(i) state whether or not the applicant has complied with chapter 5, 25
part 7,89 for reports required to be lodged in relation to the 26
authority; and 27
(j) be accompanied by-- 28
(i) the application fee prescribed under a regulation; and 29
87 See section 74 (Obligation to consult with particular owners and occupiers).
88 Sections 84 (Deciding application) and 86 (Criteria for decisions)
89 Chapter 5, part 7 (Reporting)
s 83 98 s 83
Petroleum and Gas (Production and Safety) Bill 2004
(ii) if the application is made less than 20 business days before 1
end of the term of the authority--the late fee prescribed 2
under a regulation. 3
(2) The proposed work program must comply with the later work 4
program requirements.90 5
83 Continuing effect of authority for renewal application 6
(1) This section applies if before the application is decided the term of 7
the authority to prospect ends. 8
(2) Despite the ending of the term, the authority continues in force until 9
the earlier of the following to happen-- 10
(a) the start of any renewed term of the authority; 11
(b) a refusal of the application takes effect;91 12
(c) the application is withdrawn; 13
(d) the authority is cancelled under this Act.92 14
(3) Also, if the applicant has applied for a declaration of a potential 15
commercial area for the authority, the authority continues in force until the 16
declaration application is decided, but only in relation to the area of the 17
proposed potential commercial area applied for. 18
(4) If the authority is continued in force under subsection (3), the 19
evaluation program included in the declaration application is taken to be 20
the work program for the authority. 21
(5) If the authority is renewed, subsections (2) and (3) are taken never to 22
have applied for the period from the end of the term of the authority being 23
renewed, as stated in that authority.93 24
90 See division 3, subdivision 4 (Requirements for proposed later work programs).
For approval of the proposed program, see division 3, subdivision 5 (Approval of
proposed later work programs).
91 See section 88 (When refusal takes effect).
92 See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
93 See section 85(5) (Provisions and term of renewed authority).
s 84 99 s 84
Petroleum and Gas (Production and Safety) Bill 2004
84 Deciding application 1
(1) The Minister may grant or refuse the renewal. 2
(2) However-- 3
(a) before deciding to grant the renewal, the Minister must decide 4
whether to approve the applicant's proposed later work program 5
for the renewed authority to prospect;94 and 6
(b) the renewal can not be granted unless-- 7
(i) the proposed program has been approved; and 8
(ii) the applicant satisfies the capability criteria; and 9
(iii) the Minister is satisfied the applicant-- 10
(A) continues to satisfy any special criteria that applied for 11
deciding the application for the authority to prospect 12
being renewed;95 and 13
(B) has substantially complied with the authority to 14
prospect being renewed; and 15
(iv) a relevant environmental authority for the renewed authority 16
to prospect has been issued. 17
(3) Also, if the applicant has been given a notice under section 9696 to 18
apply for a petroleum lease, the application must not be decided until the 19
issue of whether a petroleum lease will be granted is decided. 20
(4) Subsection (3) does not limit the power under section 97 to take a 21
proposed action as stated in the notice. 22
(5) The Minister may, as a condition of deciding to grant the application, 23
require the applicant to do all or any of the following within a stated 24
reasonable period-- 25
(a) pay the annual rent for the first year of the renewed authority; 26
(b) give security for the renewed authority, as required under 27
section 488.97 28
94 See division 3, subdivision 5 (Approval of proposed later work programs).
95 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
96 Section 96 (Ministerial direction to apply for petroleum lease)
97 Section 488 (Power to require security for petroleum authority)
s 85 100 s 85
Petroleum and Gas (Production and Safety) Bill 2004
(6) If the applicant does not comply with the requirement, the 1
application may be refused. 2
85 Provisions and term of renewed authority 3
(1) Subject to this section, section 4298 applies to the renewed authority 4
to prospect as if it were an authority to prospect granted under division 2.99 5
(2) The first relinquishment day must not be later than 4 years after the 6
day the renewed authority is to take effect. 7
(3) To remove any doubt, it is declared that the conditions of the renewed 8
authority may be different from the conditions or other provisions of the 9
authority to prospect being renewed. 10
(4) The area of the renewed authority must not be more than the area of 11
the authority to prospect being renewed immediately before the renewed 12
authority is to take effect. 13
(5) If the renewed authority is decided before the end of the term of the 14
authority to prospect being renewed as stated in that authority 15
(the "previous term"), the term of the renewed authority is taken to start 16
from the end of the previous term. 17
(6) If the renewed authority is decided after the previous term, the term 18
of the renewed authority starts immediately after the end of the previous 19
term, but-- 20
(a) the conditions of the renewed authority do not start until the 21
authority holder is given notice of them; and 22
(b) until the notice is given, the conditions of the authority to 23
prospect being renewed apply to the renewed authority as if they 24
were its conditions. 25
(7) The term of the renewed authority must not end more than 12 years 26
from when the authority to prospect originally took effect. 27
(8) However, if any part of the area of the renewed authority is a 28
potential commercial area, the term of the renewed authority for that part 29
may be for a longer period that-- 30
98 Section 42 (Provisions of authority to prospect)
99 Division 2 (Obtaining authority to prospect)
s 86 101 s 89
Petroleum and Gas (Production and Safety) Bill 2004
(a) ends no later that when the declaration ends;100 and 1
(b) is no more than the last term of the authority being renewed. 2
(9) To remove any doubt, it is declared that subsection (8)(b) does not 3
prevent a renewal of the renewed authority. 4
86 Criteria for decisions 5
The matters that must be considered in deciding whether to grant the 6
renewal or deciding the provisions of the renewed authority include-- 7
(a) the work program criteria;101 and 8
(b) whether the applicant continues to satisfy the capability criteria 9
and any special criteria. 10
87 Information notice about refusal 11
On refusal of the application, the applicant must be given an information 12
notice about the decision to refuse. 13
88 When refusal takes effect 14
A refusal of the application does not take effect until end of the appeal 15
period for the decision to refuse.102 16
Division 6--Potential commercial areas 17
89 Applying for potential commercial area 18
(1) The holder of an authority to prospect may apply for a declaration by 19
the Minister that all or a stated part of the area of the authority is a potential 20
commercial area for the authority. 21
(2) The application must be-- 22
(a) in the approved form; and 23
100 See section 92 (Term of declaration).
101 See section 49 (Criteria).
102 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
s 89 102 s 89
Petroleum and Gas (Production and Safety) Bill 2004
(b) lodged at-- 1
(i) the office of the department for lodging applications for 2
potential commercial area declarations, as stated in a gazette 3
notice by the chief executive; or 4
(ii) if no office is gazetted under subparagraph (i)--the office 5
stated in the approved form; or 6
(iii) otherwise--the office of the chief executive. 7
(3) The application may be made-- 8
(a) for more than 1 part of the area of the authority to prospect; and 9
(b) even if another part of the area of the authority is already a 10
potential commercial area. 11
(4) The application must include-- 12
(a) a report for, or that includes, the proposed potential commercial 13
area that-- 14
(i) meets the requirements under section 231103 for a 15
commercial viability report; and 16
(ii) is still relevant to the circumstances of the proposed 17
potential commercial area;104 and 18
(b) an evaluation program for-- 19
(i) potential petroleum production or storage in the proposed 20
potential commercial area; and 21
(ii) market opportunities for potential production or storage; 22
and 23
(c) information about the compliance or noncompliance with the 24
conditions of the authority. 25
(5) However, subsection (4)(a) does not apply if-- 26
(a) a commercial viability report or an independent viability 27
assessment relates to, or includes the proposed potential 28
commercial area; and 29
(b) the report or assessment is still relevant to the circumstances of 30
the proposed potential commercial area. 31
103 Section 231 (Required content of commercial viability report)
104 See part 7 (Commercial viability assessment).
s 90 103 s 91
Petroleum and Gas (Production and Safety) Bill 2004
90 Deciding potential commercial area application 1
(1) The Minister may declare a part the subject of the application to be a 2
potential commercial area only if satisfied-- 3
(a) the area is no more than is needed to cover the maximum extent 4
of a natural underground reservoir identified in the report; and 5
(b) petroleum production or storage in the area to be declared, is not, 6
and will not soon be, commercially viable, but is likely to 7
become viable within 15 years.105 8
(2) Also, the area declared-- 9
(a) must not be for more than 75 sub-blocks; and 10
(b) must form a single parcel of land. 11
(3) In deciding the application, regard must be had to whether the 12
conditions of the relevant authority to prospect have been substantially 13
complied with. 14
(4) On refusal of the application, the applicant must be given an 15
information notice about the decision to refuse. 16
(5) To remove any doubt, it is declared that the declaration may be made 17
even if the authority to prospect has been continued in force under 18
section 83 or 119.106 19
91 Inclusion of evaluation program in work program 20
(1) If the declaration is made, the evaluation program that accompanied 21
the application is taken to be an additional part of the existing work 22
program for the authority to prospect.107 23
(2) If there is an inconsistency between the evaluation program and the 24
rest of the work program, the evaluation program prevails to the extent of 25
the inconsistency. 26
105 See section 85(6)(b) (Provisions and term of renewed authority).
106 Section 83 (Continuing effect of authority for renewal application) or 119
(Continuing effect of authority to prospect for ATP-related application)
107 For requirements about the evaluation program in later work programs, see
section 53 (Implementation of evaluation program for potential commercial area).
s 92 104 s 93
Petroleum and Gas (Production and Safety) Bill 2004
92 Term of declaration 1
(1) Subject to section 93, a declaration of a potential commercial area 2
continues in force for-- 3
(a) 15 years from the making of the declaration; or 4
(b) if the declaration states a shorter period during which it is to be in 5
force--the shorter period. 6
(2) The matters that must be considered in deciding the shorter period 7
include-- 8
(a) when any petroleum discovery was made, whether or not a notice 9
under section 544(1)108 was lodged for the discovery; and 10
(b) any commercial viability report or independent viability 11
assessment for, or that includes, the proposed potential 12
commercial area. 13
(3) However, the declaration ceases if the authority to prospect holder 14
lodges a notice that the holder no longer wishes the area to be a potential 15
commercial area at-- 16
(a) the office of the department for lodging the notice, as stated in a 17
gazette notice by the chief executive; or 18
(b) if no office is gazetted under paragraph (a)--the office of the 19
chief executive.109 20
93 Extension of term of declaration 21
(1) If-- 22
(a) a declaration of a potential commercial area is in force for the 23
area of an authority to prospect; and 24
108 Section 544 (Notice by petroleum tenure holder about discovery and commercial
viability)
109 See also section 102 (Effect of ending of declaration of potential commercial area).
s 94 105 s 94
Petroleum and Gas (Production and Safety) Bill 2004
(b) under the Mineral Resources Act, part 7AA, division 2 or 3,110 a 1
coal mining lease or oil shale mining lease has been granted over 2
the area; 3
the Minister may, on the application of the authority to prospect holder, 4
extend the term of the declaration for a period that ends no later than 5
2 years after the mining lease ends. 6
(2) The application must be-- 7
(a) lodged at-- 8
(i) the office of the department for lodging applications under 9
this section, as stated in a gazette notice by the chief 10
executive; or 11
(ii) if no office is gazetted under subparagraph (i)--the office of 12
the chief executive; and 13
(b) accompanied by the fee prescribed under a regulation. 14
(3) On refusal of the application, the applicant must be given an 15
information notice about the decision to refuse. 16
94 Potential commercial area still part of authority 17
A declaration of a potential commercial area does not change the land 18
the subject of the declaration from being-- 19
(a) part of the area of the authority to prospect the subject of the 20
application for the declaration; and 21
(b) subject to the authority. 22
110 Mineral Resources Act, part 7AA division 2 (Obtaining coal mining lease or oil
shale mining lease over land in area of authority to prospect (other than by or jointly
with, or with the consent of, authority to prospect holder)) or 3 (Obtaining coal
mining lease or oil shale mining lease over land in area of authority to prospect (by
or jointly with, or with the consent of, authority to prospect holder))
s 95 106 s 96
Petroleum and Gas (Production and Safety) Bill 2004
Division 7--Provisions to facilitate transition to petroleum lease 1
95 Application of div 7 2
This division applies if the Minister reasonably considers the holder of 3
an authority to prospect should apply for a petroleum lease for all or part of 4
the area of the authority because-- 5
(a) petroleum production in the area-- 6
(i) is currently commercially viable; or 7
(ii) is likely to become commercially viable within 2 years; or 8
(b) a natural underground reservoir in the area is, or is likely to have, 9
commercial storage potential. 10
96 Ministerial direction to apply for petroleum lease 11
(1) The Minister may give the authority holder a notice stating each of 12
the following-- 13
(a) that the Minister proposes to do either of the following, 14
(the "proposed action") unless the holder has made an 15
appropriate lease application-- 16
(i) excise a stated area from the area of the authority; 17
(ii) cancel the authority; 18
(b) the grounds for the proposed action; 19
(c) the facts and circumstances forming the basis for the grounds; 20
(d) that the holder may, within a stated period, lodge at the following 21
office, submissions about why the holder should not make a 22
petroleum lease application for the stated area-- 23
(i) the office of the department for lodging the submissions, as 24
stated in a gazette notice by the chief executive; 25
(ii) if no office is gazetted under subparagraph (i)--the office of 26
the chief executive. 27
(2) The stated period must be reasonable, but must not be more than 28
6 months. 29
(3) In this section-- 30
s 97 107 s 98
Petroleum and Gas (Production and Safety) Bill 2004
"appropriate lease application" means a petroleum lease application 1
for-- 2
(a) the stated area or an area that is substantially the same as the 3
stated area; or 4
(b) another area the Minister reasonably considers will effectively 5
allow the holder to carry out authorised activities for a petroleum 6
lease in relation to the stated area. 7
97 Taking proposed action 8
(1) Proposed action under section 96 may be taken only if-- 9
(a) the stated period under section 96 has ended; and 10
(b) either-- 11
(i) the holder has not made an appropriate petroleum lease 12
application under section 96; or 13
(ii) any appropriate lease application under section 96 made by 14
the holder has been refused; and 15
(c) the Minister has considered any submissions lodged by the 16
holder within the period. 17
(2) The decision does not take effect until the holder is given an 18
information notice about the decision. 19
(3) A refusal of the application takes effect at end of the appeal period 20
for the decision to refuse.111 21
Division 8--Miscellaneous provisions 22
Subdivision 1--Area provisions 23
98 Area of authority to prospect 24
(1) This section provides for the area of an authority to prospect. 25
(2) The area does not include excluded land for the authority. 26
111 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
s 99 108 s 99
Petroleum and Gas (Production and Safety) Bill 2004
(3) Unless the Minister otherwise decides, the area must form a single 1
parcel of land. 2
(4) The area must not include any of the following ("unavailable 3
land")-- 4
(a) land in the area of another petroleum tenure; 5
(b) excluded land for another petroleum tenure, other than a 6
petroleum lease mentioned in section 99(5)(b); 7
(c) land in the area of a 1923 Act petroleum tenure; 8
(d) excluded land for a 1923 Act petroleum tenure; 9
(e) land that a regulation prescribes as land over which an authority 10
to prospect can not be granted. 11
(5) To remove any doubt, it is declared that if land within the original 12
notional sub-blocks of the authority ceases to be unavailable land, the 13
cessation itself does not cause the land to be within the area of the 14
authority. 15
(6) The area may include a part of a block only if the part is all areas 16
within the block that are left after taking away all unavailable land within 17
the block (a "residual block"). 18
(7) The area must be no more than 100 blocks or residual blocks, in any 19
combination. 20
99 Minister's power to decide excluded land 21
(1) The Minister may, at any time, decide excluded land for an authority 22
to prospect or proposed authority to prospect.112 23
(2) However, excluded land-- 24
(a) must be within the original notional sub-blocks of the authority; 25
and 26
(b) can not be a whole block. 27
(3) For subsection (2)(a), if the authority states that its area includes land 28
within a block without including or excluding any particular sub-block, the 29
reference to the block is a reference to all sub-blocks within the block. 30
112 See sections 42 (Provisions of authority to prospect) and 85 (Provisions and term of
renewed authority).
s 100 109 s 100
Petroleum and Gas (Production and Safety) Bill 2004
(4) Excluded land may be described in a way the Minister considers 1
appropriate, including, for example, by area or by reference to a stated type 2
of land. 3
(5) Land ceases to be excluded land for an authority to prospect if-- 4
(a) the block in which the land is located is relinquished or, for any 5
other reason, ceases to be in the area of the authority; or 6
(b) a petroleum lease is granted over any of the area of the authority 7
and the land is excluded land for the lease. 8
100 Minister may add excluded land 9
(1) The Minister may amend an authority to prospect by adding excluded 10
land for the authority to its area only if-- 11
(a) the authority as amended complies with section 98; and 12
(b) the authority holder consents. 13
(2) If land mentioned in subsection (1) is added to the area of the 14
authority the land ceases to be excluded land for the authority. 15
(3) The Minister may amend the provisions of the authority in a way that 16
reflects the inclusion of the excluded land.113 17
(4) Also, the Minister may give the authority holder a notice-- 18
(a) withdrawing, from a stated day, the approval of work program for 19
the authority; and 20
(b) directing the holder to lodge at the relevant office a proposed 21
later work program for the authority that-- 22
(i) complies with the later work program requirements; and 23
(ii) changes the work program for the authority to reflect the 24
inclusion of the excluded land. 25
(5) The amended provisions of the authority or the proposed later work 26
program must not be-- 27
(a) inconsistent with the mandatory conditions for authorities to 28
prospect; or 29
113 See also section 488 (Power to require security for petroleum authority).
s 101 110 s 102
Petroleum and Gas (Production and Safety) Bill 2004
(b) the same as, or substantially the same as, or inconsistent with, 1
any relevant environmental condition for the authority. 2
(6) In this section-- 3
"relevant office" means-- 4
(a) the office of the department for lodging proposed later work 5
programs, as stated in a gazette notice by the chief executive; or 6
(b) if no office is gazetted under paragraph (a)--the office of the 7
chief executive. 8
101 Area of authority to prospect reduced on grant of petroleum lease 9
(1) Land ceases to be included in the area of an authority to prospect if a 10
petroleum lease is granted over the land. 11
(2) If a petroleum lease is granted over all of the area of an authority to 12
prospect, the authority ends.114 13
102 Effect of ending of declaration of potential commercial area 14
(1) This section applies if all or part of the area of an authority to 15
prospect is a potential commercial area and the declaration of the potential 16
commercial area ends more than 12 years after the authority originally took 17
effect.115 18
(2) If the declaration applied to a part of the area of the authority, the part 19
ceases to be included in its area. 20
(3) If the declaration applies to all of the area of the authority, the 21
authority ends.116 22
114 See however, chapter 3, part 4, division 3 (Exception to automatic area reduction of
authority to prospect on grant of petroleum lease).
115 See section 92 (Term of declaration).
116 If the declaration ends less than 12 years after the authority originally took effect,
see section 94 (Potential commercial area still part of authority).
s 103 111 s 104
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Dividing authorities to prospect 1
103 Applying to divide 2
(1) The holder of an authority to prospect (the "original authority") 3
may apply to divide it into 2 or more authorities to prospect (the "new 4
authorities"). 5
(2) However, the holder may apply for a new authority to be granted to 6
another person only if the other person-- 7
(a) agrees to the proposed grant; and 8
(b) is an eligible person. 9
(3) Despite subsections (1) and (2), the holder can not make the 10
application if any of the following is outstanding-- 11
(a) annual rent for the original authority; 12
(b) a civil penalty under section 76 for nonpayment of annual rent; 13
(c) interest payable under section 588117 on annual rent or a civil 14
penalty; 15
(d) petroleum royalty payable for petroleum produced under the 16
original authority and any unpaid petroleum royalty interest on it; 17
(e) security for the original authority, as required under 18
section 488.118 19
104 Requirements for making application 20
The application must-- 21
(a) be in the approved form; and 22
(b) be lodged at-- 23
(i) the office of the department for lodging applications to 24
divide an authority to prospect, as stated in a gazette notice 25
by the chief executive; or 26
117 Section 588 (Interest on amounts owing to the State other than other than for
petroleum royalty)
118 Section 488 (Power to require security for petroleum authority)
s 105 112 s 105
Petroleum and Gas (Production and Safety) Bill 2004
(ii) if no office is gazetted under subparagraph (i)--the office 1
stated in the approved form; or 2
(iii) otherwise--the office of the chief executive; and 3
(c) state whether or not the work program for the original authority 4
to prospect has been complied with; and 5
(d) if the work program for the original authority has not been 6
complied with--state details of, and the reasons for, each 7
noncompliance; and 8
(e) include a proposed later work program for each proposed new 9
authority;119 and 10
(f) address the capability criteria for each proposed holder of the 11
new authorities; and 12
(g) state whether or not the holder has complied with chapter 5, 13
part 7,120 for reports required to be lodged in relation to the 14
original authority; and 15
(h) be accompanied by the fee prescribed under a regulation. 16
105 Deciding application 17
(1) The Minister may make or refuse to make the division. 18
(2) However-- 19
(a) before deciding to make the division, the Minister must decide 20
whether to approve the proposed later work programs for the new 21
authorities;121 and 22
(b) the division can not be granted unless-- 23
(i) the proposed programs have been approved; and 24
(ii) each proposed holder of the new authorities satisfies the 25
capability criteria; and 26
119 For an additional requirement for the proposed work programs, see section 54 (Later
work programs for proposed new authorities).
120 Chapter 5, part 7 (Reporting)
121 See division 3, subdivision 5 (Approval of proposed later work programs).
s 106 113 s 106
Petroleum and Gas (Production and Safety) Bill 2004
(iii) the Minister is satisfied the applicant continues to satisfy 1
any special criteria that applied for deciding the application 2
for the original authority;122 and 3
(iv) the Minister is satisfied the applicant has substantially 4
complied with the original authority. 5
(3) The matters that must be considered in making the division include 6
the work program for the original authority, the proposed later work 7
programs and the capability criteria.123 8
(4) The Minister may, as a condition of making the division, require the 9
applicant to, under section 488124, give security or additional security for all 10
or any of the new authorities within a stated reasonable period. 11
(5) If the applicant does not comply with the requirement, the division 12
may be refused. 13
106 Provisions of new authorities 14
(1) Subject to this section, section 42 applies for the provisions of a new 15
authority as if it were an authority to prospect granted under division 2.125 16
(2) However-- 17
(a) the term of each new authority must not end later than the end of 18
the term of the original authority; and 19
(b) the new authorities must have the same relinquishment days as 20
the original authority; and 21
(3) For the relinquishment condition for the new authorities-- 22
(a) the new authorities are taken to have originally taken effect when 23
the original authority originally took effect; and 24
(b) the original notional sub-blocks of the original authority are 25
divided rateably between the new authorities; and 26
(c) for working out previous relinquishments that are counted for the 27
relinquishment condition for each new authority, the 28
122 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
123 See section 57 (Deciding whether to approve proposed program).
124 Section 488 (Power to require security for petroleum authority)
125 Section 42 (Provisions of authority to prospect)
Division 2 (Obtaining authority to prospect)
s 107 114 s 108
Petroleum and Gas (Production and Safety) Bill 2004
relinquishments previously counted for the relinquishment 1
condition for the original authority are divided rateably between 2
the new authorities. 3
107 Steps after deciding application 4
(1) After the provisions of the new authorities are decided, the applicant 5
and anyone else who will be a holder of any new authority, must be given 6
notice of the relevant provisions and work program.126 7
(2) On refusal to make the division, the applicant must be given notice of 8
the refusal. 9
PART 2--PETROLEUM LEASES 10
Division 1--Key authorised activities 11
Subdivision 1--General provisions 12
108 Operation of sdiv 1 13
(1) This subdivision provides for the key authorised activities for a 14
petroleum lease.127 15
(2) The authorised activities may be carried out despite the rights of an 16
owner or occupier of land on which they are exercised. 17
(3) However, the carrying out of the authorised activities is subject to-- 18
(a) section 6; and 19
(b) subdivision 2; and 20
(c) chapter 3, part 5, division 1; and 21
126 For noncompliance action started, or that could have been taken, against the original
authority holder, see section 792 (Provision for divided petroleum tenures).
127 For other authorised activities, see part 4 (Water rights for petroleum tenures),
chapter 5, part 2, division 3 (Access to private land outside area of petroleum
authority) and part 8 (General provisions for conditions and authorised activities).
s 109 115 s 109
Petroleum and Gas (Production and Safety) Bill 2004
(d) chapters 5 and 9; and 1
(e) the mandatory and other conditions of the lease; and 2
(f) any exclusion or restriction provided for in the lease on the 3
carrying out of the activities; and 4
(g) any other relevant Act or law.128 5
109 Exploration, production and storage activities 6
(1) The lease holder may carry out the following activities in the area of 7
the lease-- 8
(a) exploring for petroleum; 9
(b) subject to section 152129-- 10
(i) testing for petroleum production; and 11
(ii) evaluating the feasibility of petroleum production; and 12
(iii) testing natural underground reservoirs for petroleum 13
storage; 14
(c) petroleum production; 15
(d) evaluating, developing and using natural underground reservoirs 16
for petroleum storage or to store prescribed storage gases, 17
including, for example, to store petroleum or prescribed storage 18
gases for others. 19
(2) However, the holder must not carry out any of the following-- 20
(a) extraction or production of a gasification or retorting product 21
from coal or oil shale by a chemical or thermal process; 22
(b) exploration for coal or oil shale to carry out extraction or 23
production mentioned in paragraph (a). 24
128 Section 6 (Relationship with Mineral Resources Act)
Subdivision 2 (Provisions for coextensive natural underground reservoirs)
Chapter 3 (Provisions for coal seam gas), part 5 (Additional provisions for
petroleum leases), division 1 (Restriction on authorised activities for particular
petroleum leases)
Chapters 5 (Common petroleum authority provisions) and 9 (Safety)
129 Section 152 (Permitted period for production or storage testing)
s 110 116 s 110
Petroleum and Gas (Production and Safety) Bill 2004
(3) The rights under subsection (1) may be exercised only by or for the 1
holder.130 2
(4) The right to store petroleum or prescribed storage gases for others is 3
subject to part 6.131 4
110 Petroleum pipeline and water pipeline construction and operation 5
(1) The lease holder may construct and operate petroleum pipelines and 6
water pipelines in the area of the lease. 7
(2) However, if a petroleum pipeline or water pipeline extends beyond 8
the area of the lease, subsection (1) applies only if the pipeline is 9
completely within-- 10
(a) the area of the lease; and 11
(b) the area of 1 or more other petroleum leases also held by the 12
holder that are contiguous to the lease.132 13
(3) Also, if the pipeline is a water pipeline, the pipeline may only be 14
operated to transport water for the carrying out of an authorised activity for 15
the lease, other than the authorised activity under section 186,133 on an area 16
mentioned in subsection (2). 17
(4) Subsection (3) does not prevent the lease holder from constructing or 18
operating a water pipeline if the holder can otherwise lawfully do so. 19
(5) In this section-- 20
"petroleum pipeline" means a pipeline as defined in section 16. 134
21
"water pipeline" means-- 22
(a) a pipe, or system of pipes for transporting water; and 23
130 See also section 800 (Restriction on petroleum tenure activities).
For who may exercise the rights for the holder, see section 563 (Who may carry out
authorised activity for petroleum authority holder).
131 Part 6 (Third party storage access to natural underground reservoirs)
132 For who owns the pipeline, see chapter 5, part 6 (Ownership of pipelines, equipment
and improvements).
133 Section 186 (Right to allow use of associated water for domestic or stock purposes)
134 Section 16 (What is a "pipeline")
s 111 117 s 112
Petroleum and Gas (Production and Safety) Bill 2004
(b) a thing connected to or associated with the pipeline that is 1
necessary for its operation, including, for example, a thing 2
mentioned in section 16(2)(b), examples 1 to 4. 3
111 Petroleum processing 4
(1) The lease holder may-- 5
(a) carry out the processing of petroleum in the area of the lease; and 6
(b) construct and operate a facility for the processing, storage or 7
transport of petroleum in the area of the lease.135 8
(2) Subsection (1) applies for petroleum produced in or outside the area. 9
(3) In this section-- 10
"processing" of petroleum-- 11
(a) includes the separation of LPG only if the separation is incidental 12
to other petroleum processing; and 13
(b) does not include refining petroleum.136 14
112 Incidental activities 15
(1) The lease holder may carry out an activity (an "incidental activity") 16
in the area of the lease if carrying out the activity is reasonably necessary 17
for, or incidental to, another authorised activity for the lease.137 18
19
Examples of incidental activities--
20
1. constructing or operating plant or works, including, for example, communication
21
systems, compressors, powerlines, pumping stations, reservoirs, roads, evaporation
22
or storage ponds and tanks
23
2. constructing or using temporary structures or structures of an industrial or
24
technical nature, including, for example, mobile and temporary camps
25
3. removing vegetation for, or for the safety of, exploration or testing under
26
section 152(1)
135 For ownership of petroleum produced, see chapter 1, part 4 (Property in petroleum).
136 For activities mentioned in paragraphs (a) and (b), see chapter 4, part 3 (Petroleum
facility licences).
137 See also part 10 (General provisions for petroleum wells, water supply bores and
water observation bores), section 239 (Coordination arrangement overrides relevant
leases), chapter 5 (Common petroleum authority provisions) and section 20(2)
(What are the "conditions" of a petroleum authority).
s 113 118 s 115
Petroleum and Gas (Production and Safety) Bill 2004
(2) However, constructing or using a structure, other than a temporary 1
structure, for office or residential accommodation is not an incidental 2
activity.138 3
Subdivision 2--Provisions for coextensive natural underground 4
reservoirs 5
113 Application of sdiv 2 6
This subdivision applies if a natural underground reservoir in the area of 7
a petroleum lease extends to-- 8
(a) the area of an adjacent petroleum lease or coal mining lease or oil 9
shale mining lease (an "adjacent lease"); or 10
(b) if a person has applied for a petroleum lease, coal mining lease or 11
oil shale mining lease that will, if granted, be an adjacent 12
lease--the area of the proposed lease. 13
114 Coordination arrangement may be made about mining or 14
production from reservoir 15
The petroleum lease holder and an adjacent lease holder, or proposed 16
adjacent lease holder, may make a coordination arrangement that provides 17
for the petroleum that can, under the Mineral Resources Act139 or this Act, 18
be produced from the reservoir from within the area of the petroleum lease 19
and the adjacent lease, or proposed adjacent lease.140 20
115 Restriction on petroleum production from reservoir 21
(1) The petroleum lease holder must not produce petroleum that comes, 22
or is likely to come, from the part of the reservoir that is in the area of an 23
adjacent lease unless the production is carried out under-- 24
138 For development generally, see the Integrated Planning Act 1997, chapter 3
(Integrated development assessment system (IDAS)) and schedule 9 (Development
that is exempt development for a planning scheme).
139 See the Mineral Resources Act, section 318CM (Limited entitlement to mine coal
seam gas).
140 For the making of coordination arrangements, see part 8 (Petroleum activities
coordination).
s 116 119 s 116
Petroleum and Gas (Production and Safety) Bill 2004
(a) a coordination arrangement mentioned in section 114; or 1
(b) a decision of the tribunal under section 116. 2
(2) However, if the adjacent lease was granted after the petroleum lease 3
was granted and, when the adjacent lease was granted, the petroleum lease 4
holder was producing petroleum mentioned in subsection (1), 5
subsection (1) does not apply to the petroleum lease holder until the later of 6
the following-- 7
(a) 6 months after granting of the adjacent lease; 8
(b) if within the 6 months the petroleum lease holder applies to the 9
tribunal under section 116--when the tribunal decides the 10
application. 11
116 Dispute resolution by tribunal 12
(1) This section applies if the petroleum lease holder or an adjacent lease 13
holder (the "parties") have not made a coordination arrangement 14
mentioned in section 114. 15
(2) Either party may apply to the tribunal for it to decide-- 16
(a) the amount or proportion of petroleum mentioned in 17
section 114(1) that, when produced, is owned by each party; and 18
(b) how the parties are to bear the costs of the production; and 19
(c) how the production is to be coordinated. 20
21
Example for paragraph (c)--
22
Fixing a minimum distance from the boundary between the petroleum
23
lease and the adjacent lease for petroleum production from the reservoir
24
under the petroleum lease.
(3) If the adjacent lease was granted after the petroleum lease was 25
granted, the decision may apply from the grant of the adjacent lease. 26
(4) In making the decision, the tribunal-- 27
(a) must consider whether the safety of production activities on any 28
adjoining mining or petroleum lease would be compromised; and 29
(b) must attempt to optimise petroleum production under the 30
petroleum lease and mining or production under the adjacent 31
lease in a way that maximises the benefit for all Queenslanders; 32
and 33
s 117 120 s 118
Petroleum and Gas (Production and Safety) Bill 2004
(c) may make the decision without having regard to the issue of who 1
would have, under another Act or law, otherwise owned the 2
petroleum. 3
(5) In considering the benefit to all Queenslanders, the tribunal must 4
have regard to the public interest. 5
Division 2--Transition from authority to prospect to petroleum lease 6
Subdivision 1--Applying for petroleum lease 7
117 Who may apply 8
(1) An authority to prospect holder may apply for a petroleum lease over 9
all or part of the area of the authority.141 10
(2) Also, a person other than the holder may apply for the lease-- 11
(a) jointly with the holder; or 12
(b) with the holder's consent. 13
(3) An application under this section is an "ATP-related application". 14
118 Requirements for making ATP-related application 15
An ATP-related application must-- 16
(a) be in the approved form; and 17
(b) be lodged at-- 18
(i) the office of the department for lodging ATP-related 19
applications, as stated in a gazette notice by the chief 20
executive; or 21
(ii) if no office is gazetted under subparagraph (i)--the office 22
stated in the approved form; or 23
(iii) otherwise--the office of the chief executive; and 24
(c) address the capability criteria; and
142
25
141 See also section 168 (Area of petroleum lease).
142 For the criteria, see section 121(1)(e) (Requirements for grant).
s 119 121 s 119
Petroleum and Gas (Production and Safety) Bill 2004
(d) include each of the following-- 1
(i) a statement about why the size of the proposed area of the 2
proposed petroleum lease is appropriate for authorised 3
activities under the lease; 4
(ii) a statement about how and when the applicant proposes to 5
consult with, and keep informed, each owner and occupier 6
of private or public land on which authorised activities for 7
the proposed lease are, or are likely to be, carried out;143 8
(iii) information about the matter under section 121(2) on which 9
the applicant seeks to rely to establish the requirements for 10
the grant; 11
(iv) a proposed development plan that complies with the initial 12
development plan requirements;144 and 13
(e) be accompanied by the fee prescribed under a regulation. 14
119 Continuing effect of authority to prospect for ATP-related 15
application 16
(1) This section applies if before the ATP-related application is decided 17
the term of the authority to prospect ends. 18
(2) Despite the ending of the term, the authority continues in force until 19
the earlier of the following to happen-- 20
(a) the start of the term of the petroleum lease; 21
(b) a refusal of the ATP-related application takes effect;145 22
(c) the application is withdrawn; 23
(d) the authority is cancelled under this Act.146 24
143 See section 153 (Obligation to consult with particular owners and occupiers).
144 See division 4, subdivision 2 (Requirements for proposed initial development plans).
145 See section 125 (When refusal takes effect).
146 See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
s 120 122 s 121
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Deciding ATP-related applications 1
120 Right to grant if requirements for grant met 2
(1) Subject to section 122, the Minister must grant the petroleum lease if 3
the Minister is satisfied the requirements mentioned in section 121 4
(the "requirements for grant") have been complied with. 5
(2) The lease must be refused if the Minister is not satisfied any 6
requirement for grant, other than the requirement mentioned 7
section 121(1)(c), has been complied with. 8
(3) If the Minister is satisfied the requirements for grant, other than the 9
requirement mentioned section 121(1)(c), have been complied with, the 10
Minister may grant the lease. 11
121 Requirements for grant 12
(1) The requirements for grant are each of the following-- 13
(a) the applicant is an eligible person; 14
(b) the proposed area of the proposed petroleum lease-- 15
(i) is appropriate for the authorised activities proposed to be 16
carried out; and 17
(ii) if the authorised activities relate to petroleum 18
production--contains adequately identified resources and 19
reserves of petroleum; and 20
(iii) if the authorised activities relate to petroleum 21
storage--contains an adequately identified reservoir that is 22
adequate for the proposed purpose of the lease; 23
(c) the conditions of the relevant authority to prospect have been 24
substantially complied with; 25
(d) the Minister has approved the applicant's proposed initial 26
development plan for the lease;147 27
147 For approval of development plans, see division 4, subdivision 2 (Requirements for
proposed initial development plans).
s 122 123 s 122
Petroleum and Gas (Production and Safety) Bill 2004
(e) the Minister is of the opinion that the applicant is capable of 1
carrying out authorised activities for the lease, having regard to 2
the applicant's-- 3
(i) financial and technical resources; and 4
(ii) ability to manage petroleum exploration and production; 5
(f) a relevant environmental authority for the lease has been issued; 6
(g) the applicant has established 1 of the matters mentioned in 7
subsection (2). 8
(2) For subsection (1)(g), the matters are any of the following-- 9
(a) commercial petroleum production in the area of the lease is, or is 10
likely, within 2 years after the lease is to take effect; 11
(b) the applicant has-- 12
(i) entered into a contract, coordination arrangement or other 13
arrangement (a "relevant arrangement") to supply 14
petroleum produced from the area of the lease; and 15
(ii) lodged at the office required for lodging ATP-related 16
applications a written declaration that the petroleum 17
produced from the area of the lease will meet all or some of 18
the petroleum required to be supplied under the relevant 19
arrangement; 20
(c) the area of the lease is suitable for underground petroleum 21
storage and the storage will, or is likely to, start before the later 22
of the following to happen-- 23
(i) the end of 5 years after the lease is to take effect; 24
(ii) the end of the plan period for the applicant's proposed 25
development plan for the lease. 26
(3) The matters mentioned in subsection (1)(e) are the "capability 27
criteria". 28
(4) A person "satisfies" the capability criteria if the Minister forms the 29
opinion about the person mentioned in subsection (1)(e). 30
122 Exception for particular relevant arrangements 31
Despite section 120, the application may be refused if the Minister-- 32
(a) is not satisfied of a matter under section 121(2)(a) or (c); and 33
s 123 124 s 123
Petroleum and Gas (Production and Safety) Bill 2004
(b) is satisfied the applicant has entered into a relevant arrangement, 1
but the Minister reasonably believes-- 2
(i) the arrangement is not an arms-length commercial 3
transaction; or 4
(ii) supply under the arrangement is unlikely to be carried out. 5
123 Provisions of petroleum lease 6
(1) Each petroleum lease must state its term and area.148 7
(2) The term must-- 8
(a) be for at least the plan period for the initial development plan for 9
the lease; and 10
(b) end no later than 30 years after the lease takes effect. 11
(3) The lease may also state-- 12
(a) conditions or other provisions of the lease, other than conditions 13
or provisions that are-- 14
(i) inconsistent with the mandatory conditions for petroleum 15
leases; or 16
(ii) the same as, or substantially the same as, or inconsistent 17
with, any relevant environmental condition for the lease;149 18
and 19
(b) a day for the lease to take effect; and 20
(c) a day by which petroleum production under the lease is to start 21
(the "production commencement day"). 22
(4) However, the provisions of the lease may exclude or restrict the 23
carrying out of an authorised activity for the lease. 24
(5) The day of effect must not be before the day the lease is granted. 25
(6) If no day of effect is decided, the lease takes effect on the day it is 26
granted. 27
148 See section 168 (Area of petroleum lease).
149 See also section 169 (Minister's power to decide excluded land).
s 124 125 s 126
Petroleum and Gas (Production and Safety) Bill 2004
(7) The production commencement day may be more than 2 years after 1
the day of effect only if the Minister is satisfied the holder has entered into 2
a relevant arrangement. 3
(8) The matters that must be considered in deciding the provisions of the 4
lease include the development plan criteria and capability criteria. 5
124 Information notice about refusal 6
On refusal of the application, the applicant must be given an information 7
notice about the decision to refuse.150 8
125 When refusal takes effect 9
A refusal of the application does not take effect until the end of the 10
appeal period for the decision to refuse.151 11
Division 3--Obtaining petroleum lease by competitive tender 12
Subdivision 1--Preliminary 13
126 Operation of div 3 14
(1) This division provides for a process for the granting of petroleum 15
leases by competitive tender. 16
(2) To remove any doubt, it is declared that a petroleum lease can only be 17
granted under this division, division 2 or division 7, subdivision 2.152 18
150 See however section 829 (Restriction on tribunal's powers for decision not to grant
petroleum lease).
151 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
152 Division 7, subdivision 2 (Dividing petroleum leases)
s 127 126 s 127
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Calls for tenders 1
127 Call for tenders 2
(1) The Minister may publish a notice (a "call for tenders") inviting 3
tenders for a petroleum lease. 4
(2) The call must state-- 5
(a) the proposed area of the lease; and 6
(b) that, under section 169, particular land may be excluded land for 7
the lease;153 and 8
(c) the day and time by which tenders in response to it must be made 9
(the "closing time" for the call); and 10
(d) that the tenders must be lodged before the closing time for the 11
call at the place stated in the approved form for making the 12
tender; and 13
(e) that details about each of the following are available at a stated 14
place-- 15
(i) any proposed conditions of the lease, other than mandatory 16
conditions for petroleum leases, that are likely to impact 17
significantly on exploration or production in the proposed 18
area of the lease; 19
(ii) the required plan period for the initial development plan for 20
the lease; 21
(iii) any criteria ("special criteria"), other than the development 22
plan criteria and capability criteria, proposed to be used to 23
decide whether to grant the lease or to decide its 24
provisions;154 25
(iv) the weight proposed to be given to each development plan 26
criteria, capability criteria and special criteria. 27
(3) The call may state other relevant matters, including, for example, 28
matters relevant to the development plan, capability or special criteria. 29
153 Section 169 (Minister's power to decide excluded land)
See also section 170 (Minister may add excluded land).
154 For the capability criteria and development plan criteria, see sections 121
(Requirements for grant) and 141 (Criteria).
s 128 127 s 129
Petroleum and Gas (Production and Safety) Bill 2004
(4) The area of the proposed lease must comply with section 168.155 1
(5) Subsection (2)(e)(i) does not limit the power under section 133156 to 2
decide conditions of the lease if it is granted. 3
128 Right to tender 4
(1) A person157 may tender for a proposed petroleum lease the subject of 5
a call for tenders. 6
(2) However, the tender-- 7
(a) must comply with the requirements under section 118158 for 8
making an ATP-related application; and 9
(b) be lodged at-- 10
(i) the office or place for lodging tenders for proposed 11
petroleum leases, as stated in a gazette notice by the chief 12
executive; or 13
(ii) if no office or place is gazetted under subparagraph (i)--the 14
office or place stated in the approved form; or 15
(iii) otherwise--the office of the chief executive; and 16
(c) can not be made-- 17
(i) after the closing time for the call; or 18
(ii) for only part of the area of the proposed petroleum lease. 19
129 Right to terminate call for tenders 20
(1) The Minister may, by gazette notice, terminate a call for tenders at 21
any time before deciding to grant a petroleum lease to a person who has 22
made a tender in response to the call. 23
(2) All tenders in response to the call lapse when the call is terminated. 24
155 Section 168 (Area of petroleum lease)
156 Section 133 (Provisions of petroleum lease)
157 See however section 132(2) (Deciding whether to grant petroleum lease).
158 Section 118 (Requirements for making ATP-related application)
s 130 128 s 131
Petroleum and Gas (Production and Safety) Bill 2004
(3) No amount, whether by way of compensation, reimbursement or 1
otherwise is payable by the State to any person for or in connection with 2
the termination. 3
Subdivision 3--Deciding tenders 4
130 Process for deciding tenders 5
Subject to section 134,159 any process the Minister considers appropriate 6
may be used to decide a call for tenders, including, for example, by a 7
process appointing a preferred tenderer on the tenders made in response to 8
the call. 9
131 Provisions for preferred tenderers 10
(1) The Minister may require a preferred tenderer for the call for tenders 11
to-- 12
(a) pay any amounts necessarily incurred, or to be incurred, to 13
enable the petroleum lease to be granted; and 14
15
Example--
16
amounts required to comply with the Commonwealth Native Title Act,
17
part 2, division 3, subdivision P160
(b) to do all or any of the following within a stated reasonable 18
period-- 19
(i) pay the annual rent for the first year of the lease; 20
(ii) give security for the lease, as required under section 488.161 21
(2) If a preferred tenderer does not-- 22
(a) comply with a requirement under subsection (1); or 23
(b) do all things reasonably necessary to allow a petroleum lease to 24
be granted to the tenderer; 25
the Minister may appoint another tenderer to be the preferred tenderer. 26
159 Section 134 (Criteria for decisions)
160 Commonwealth Native Title Act, part 2, division 3, subdivision P (Right to
negotiate)
161 Section 488 (Power to require security for petroleum authority)
s 132 129 s 134
Petroleum and Gas (Production and Safety) Bill 2004
132 Deciding whether to grant petroleum lease 1
(1) The Minister may, after the closing time for the call for tenders-- 2
(a) grant a petroleum lease to 1 tenderer; or 3
(b) refuse to grant any petroleum lease. 4
(2) However-- 5
(a) before deciding to grant the lease, the Minister must decide 6
whether to approve the applicant's proposed initial development 7
plan for the lease;162 and 8
(b) the Minister can not grant the lease unless-- 9
(i) the tenderer is an eligible person; and 10
(ii) the proposed plan has been approved; and 11
(iii) the Minister is satisfied the requirements for grant, other 12
than the requirement mentioned in section 121(1)(c),163 have 13
been complied with; and 14
(iv) a relevant environmental authority for the lease has been 15
issued. 16
133 Provisions of petroleum lease 17
Section 123164 applies to a petroleum lease granted under this division as 18
if the tender for the lease was an ATP-related application. 19
134 Criteria for decisions 20
(1) The matters that must be considered in deciding whether to grant a 21
petroleum lease or its provisions include the development plan criteria, 22
capability criteria and any special criteria. 23
(2) The Minister may give the weight to each of the development plan, 24
capability and special criteria that the Minister considers appropriate in the 25
circumstances. 26
162 See division 4, subdivision 3 (Criteria for deciding whether to approve proposed
initial development plans).
163 Section 121 (Requirements for grant)
164 Section 123 (Provisions of petroleum lease)
s 135 130 s 137
Petroleum and Gas (Production and Safety) Bill 2004
135 Notice to unsuccessful tenderers 1
After a call for tenders has been decided, each tenderer not granted the 2
petroleum lease must be given notice of the decision.165 3
Division 4--Development plans 4
Subdivision 1--Function and purpose of development plan 5
136 Function and purpose 6
(1) The development plan for a petroleum lease or proposed petroleum 7
lease (the "relevant lease") gives detailed information about the nature and 8
extent of activities to be carried out under the relevant lease. 9
(2) The development plan may-- 10
(a) also relate to another petroleum lease or proposed petroleum 11
lease if the other lease or proposed lease relates to the relevant 12
lease; and 13
(b) provide that when the plan is approved it will replace any 14
development plan for the other lease. 15
(3) The purposes of giving the information are to-- 16
(a) allow resource management decisions to be made; and 17
(b) ensure appropriate development of the lease. 18
Subdivision 2--Requirements for proposed initial development plans 19
137 Operation of sdiv 2 20
This subdivision provides for requirements (the "initial development 21
plan requirements") for a proposed initial development plan for a 22
proposed petroleum lease.166 23
165 See also the Judicial Review Act 1991, section 32 (Request for statement of
reasons).
166 For additional requirements for development plans for coal seam gas, see chapter 3,
part 6 (Additional provisions for development plans).
s 138 131 s 138
Petroleum and Gas (Production and Safety) Bill 2004
138 General requirements 1
(1) The proposed plan must provide for each of the following-- 2
(a) an overview of the activities proposed to be carried out under the 3
lease or proposed lease during all of its term; 4
(b) for each year of the plan period-- 5
(i) the nature and extent of activities proposed to be carried out 6
under the lease or proposed lease during the year; and 7
(ii) where the activities are proposed to be carried out; and 8
(iii) the estimated cost of the activities; 9
(c) for each natural underground reservoir in the area of the lease of 10
which the applicant is aware, each of the following-- 11
(i) the location and a verifiable estimate of the amount of 12
petroleum in the reservoir; 13
(ii) the standards and procedures used to make the estimate; 14
(iii) the rate and amount of production proposed from the 15
reservoir; 16
(iv) approximately when the proposed production is to start; 17
(v) a schedule for the proposed production during the plan 18
period; 19
(d) maps that show the matters mentioned in paragraph (b)(i) and (ii) 20
and (c)(i); 21
(e) any other information relevant to the development plan 22
criteria;167 23
(f) reasons why the plan is considered appropriate; 24
(g) another matter prescribed under a regulation. 25
(2) A regulation may impose requirements about the form of the 26
development plan. 27
(3) In this section-- 28
"year", of the plan period, means-- 29
167 See section 141 (Criteria).
s 139 132 s 140
Petroleum and Gas (Production and Safety) Bill 2004
(a) the period starting on the day the plan period starts and ending on 1
the first anniversary of that day; and 2
(b) each subsequent period of 12 months or less during the plan 3
period, starting on each anniversary of that day and ending on-- 4
(i) the next anniversary of that day; or 5
(ii) if the plan period ends before the next anniversary--the day 6
the plan period ends. 7
139 Plan period 8
(1) The proposed plan must state its period. 9
(2) If the proposed plan relates to a tender, the period must be the same 10
as the required period under the relevant call for tenders.168 11
(3) If the proposed plan relates to an ATP-related application, the period 12
must not be longer than-- 13
(a) if the term sought for the lease is less than 5 years from the 14
granting of the lease--the term of the lease; or 15
(b) if the term sought for the lease is 5 years or more from the start of 16
the term--5 years from the start of the term. 17
140 Storage 18
If natural underground reservoir storage is proposed, the proposed plan 19
must include the following-- 20
(a) a program for evaluating, developing and using the reservoir; 21
(b) a verifiable estimate of its storage capacity; 22
(c) the standards and procedures used to make the estimate; 23
(d) a schedule for the storage injection and withdrawal; 24
(e) another matter prescribed under a regulation. 25
168 See section 127 (Call for tenders).
s 141 133 s 143
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Criteria for deciding whether to approve proposed initial 1
development plans 2
3
Note--
4
For the requirement for approval of an initial development plan, see sections 120
5
and 132.169
141 Criteria 6
The matters that must be considered in deciding whether to approve a 7
proposed development plan include each of the following 8
(the "development plan criteria")-- 9
(a) the potential of the area of the proposed petroleum lease for 10
petroleum production and related activities; 11
(b) the nature and extent of the activities; 12
(c) when and where the activities are proposed to be carried out; 13
(d) whether petroleum production sought under the lease will be 14
optimised in the best interests of the State, having regard to the 15
public interest. 16
Subdivision 4--Requirements for proposed later development plans 17
142 Operation of sdiv 4 18
This subdivision provides for requirements (the "later development 19
plan requirements") for a proposed later development plan for a petroleum 20
lease.170 21
143 General requirements 22
(1) The proposed plan must-- 23
169 Section 120 (Right to grant if requirements for grant met) and 132 (Deciding whether
to grant petroleum lease)
170 For the obligation to lodge a proposed later development plan, see section 159
(Obligation to lodge proposed later development plan).
s 144 134 s 145
Petroleum and Gas (Production and Safety) Bill 2004
(a) comply with the initial development plan requirements, as if the 1
reference in section 139(3)171 to the term sought for the lease 2
were a reference to the remaining term, or the renewed term, of 3
the lease; and 4
(b) highlight any significant changes from the current development 5
plan for the lease; and 6
(c) if the current development plan has not been complied 7
with--state the details of, and the reasons for, each 8
noncompliance. 9
(2) If the effect of the proposed plan is to significantly change an activity 10
provided for under the current development plan for the lease, the proposed 11
plan must also state reasons for the change. 12
(3) Also, for a significant change that is a cessation or reduction of 13
petroleum production, the proposed plan must include an evaluation of-- 14
(a) petroleum production potential in the area of the lease; and 15
(b) market opportunities for petroleum production in the area of the 16
lease. 17
144 Later development plans for proposed new leases 18
Proposed later development plans for an application under division 7, 19
subdivision 2,172 to divide a petroleum lease must have a combined effect 20
that is at least the effect of the development plan for the original lease. 21
Subdivision 5--Approval of proposed later development plans 22
145 Application of sdiv 5 23
This subdivision applies if-- 24
171 Section 139 (Plan period)
172 Division 7, subdivision 2 (Dividing petroleum leases)
s 146 135 s 147
Petroleum and Gas (Production and Safety) Bill 2004
(a) under this Act, a proposed later development plan is lodged for 1
approval;173 or 2
(b) the Minister is considering an application under section 235174 3
for approval of a proposed coordination arrangement. 4
146 Petroleum lease taken to have development plan until decision on 5
whether to approve proposed development plan 6
(1) This section applies until-- 7
(a) if the proposed plan is approved--the holder is given notice of 8
the approval; or 9
(b) if approval of the proposed plan is refused--when the refusal 10
takes effect.175 11
(2) Despite the ending of the plan period for the current development 12
plan for the petroleum lease-- 13
(a) the lease is taken to have a development plan; and 14
(b) the holder may carry out any authorised activity for the lease. 15
147 Deciding whether to approve proposed plan 16
(1) The Minister may approve or refuse to approve the proposed plan. 17
(2) The matters that must be considered in deciding whether to approve 18
the proposed plan include each of the following-- 19
(a) the development plan criteria;176 20
(b) the extent to which the current development plan for the lease has 21
been complied with; 22
173 For requirements to lodge a proposed later development plan, see sections 100
(Minister may add excluded land), 159 (Obligation to lodge proposed later
development plan), 170 (Minister may add excluded land), 372 (Requirements for
making application) and 790 (Types of noncompliance action that may be taken),
division 6 (Renewals) and division 7, subdivision 2 (Dividing petroleum leases).
174 Section 235 (Applying for Ministerial approval of proposed coordination
arrangement)
175 For when the decision takes effect, see section 149 (Steps after, and taking effect of,
decision).
176 See section 141 (Criteria).
s 148 136 s 148
Petroleum and Gas (Production and Safety) Bill 2004
(c) if the proposed plan provides for a significant change that is a 1
cessation or reduction of petroleum production-- 2
(i) whether the cessation or reduction is reasonable; and 3
(ii) whether the petroleum lease holder has taken all reasonable 4
steps to prevent the cessation or reduction. 5
(3) Also, if the lease was granted in response to a tender, any other 6
development plan proposed by other tenderers for the lease must be taken 7
into account. 8
(4) However, subsection (3) applies only to the extent the other plan 9
includes the period of the proposed plan. 10
148 Power to require relinquishment 11
(1) This section applies if the proposed plan provides for a significant 12
change that is a cessation or reduction of petroleum production. 13
(2) The Minister may approve the proposed plan, but-- 14
(a) decide (a "deferral decision")-- 15
(i) to defer the taking of effect of the approval until the 16
petroleum lease holder relinquishes, by a notice lodged at 17
the following office (the "relevant office"), a stated part or 18
percentage of the area of the lease on or before a stated 19
day-- 20
(A) the office of the department for lodging relinquishment 21
notices, as stated in a gazette notice by the chief 22
executive; 23
(B) if no office is gazetted under 24
subsubparagraph (A)--the office of the chief 25
executive; and 26
(ii) that the decision to approve the proposed plan is replaced by 27
a decision not to approve it if the notice is not lodged on or 28
before the stated day; or 29
(b) impose a condition on the lease requiring its holder to relinquish, 30
by a notice lodged at the relevant office, a stated part or 31
percentage of the area of the lease at stated times or intervals. 32
(3) The public interest must be considered before making a deferral 33
decision or imposing the condition. 34
s 149 137 s 150
Petroleum and Gas (Production and Safety) Bill 2004
(4) A relinquishment under subsection (2)(a)(i) takes effect on the day 1
after the notice is lodged. 2
149 Steps after, and taking effect of, decision 3
(1) On approval of the proposed later development plan, the holder must 4
be given notice of the approval. 5
(2) The approval takes effect when the holder is given the notice or, if the 6
notice states a later day of effect, on that later day. 7
(3) The holder must be given an information notice about-- 8
(a) a decision to refuse to approve the proposed plan; or 9
(b) a decision, under section 148, to make a deferral decision or 10
impose a condition. 11
(4) A refusal does not takes effect until the end the appeal period for the 12
decision to refuse. 13
Division 5--Key mandatory conditions for petroleum leases 14
150 Operation of div 5 15
This division provides for particular mandatory conditions for petroleum 16
leases. 17
18
Note--
19
1. The following provisions also impose mandatory conditions on petroleum leases--
20
· division 1
21
· parts 4, 9 and 10
22
· sections 181 and 202
23
· part 6, division 2, subdivision 2
24
· chapter 3, part 5, division 2
s 151 138 s 151
Petroleum and Gas (Production and Safety) Bill 2004
1
· chapter 5.177
2
2. For what is a `mandatory condition', see section 20(2).178
151 Restriction on flaring or venting 3
(1) A petroleum lease holder must not flare or vent petroleum in a 4
gaseous state produced under the lease unless the flaring or venting is 5
authorised under this section. 6
(2) Flaring the gas is authorised if it is not commercially or technically 7
feasible to use it-- 8
(a) commercially under the authority; or 9
(b) for an authorised activity for the authority. 10
(3) Venting the gas is authorised if-- 11
(a) it is not safe to use the gas for a purpose mentioned in 12
subsection (2)(a) or (b) or to flare it; or 13
(b) flaring it is not technically practicable. 14
(4) Venting the incidental coal seam gas is also authorised if-- 15
(a) it is being used, or is proposed to be used, under a greenhouse 16
abatement scheme; and 17
(b) if subsection (1) were to apply, the direct or indirect benefit the 18
mining lease holder would otherwise obtain because of the use of 19
the gas under the scheme would be reduced. 20
(5) In this section-- 21
"greenhouse abatement scheme" means-- 22
177 Division 1 (Key authorised activities)
Parts 4 (Water rights for petroleum tenures), 9 (Existing Water Act bores) and 10
(General provisions for petroleum wells, water supply bores and water observation
bores)
Sections 181 and 202 (Additional condition of relevant petroleum tenure)
Part 6, division 2, subdivision 2 (Negotiation obligations of petroleum lease holders
and existing users)
Chapter 3 (Provisions for coal seam gas), part 5 (Additional provisions for
petroleum leases), division 2 (Conditions)
Chapter 5 (Common petroleum authority provisions)
178 Section 20 (What are the "conditions" of a petroleum authority)
s 152 139 s 153
Petroleum and Gas (Production and Safety) Bill 2004
(a) the Electricity Supply Act 1995 (NSW), part 8A;179 or 1
(b) the Commonwealth's Greenhouse Gas Abatement Program; or 2
(c) another scheme about the abatement of greenhouse gases 3
prescribed under a regulation. 4
152 Permitted period for production or storage testing 5
(1) Subject to section 151, a petroleum lease holder may carry out-- 6
(a) testing ("production testing") for petroleum production from 7
each petroleum well in the area of the lease; and 8
(b) testing each natural underground reservoir in the area for 9
petroleum storage. 10
(2) However, production testing may be carried out for more than 11
30 days from when the testing on the petroleum well first starts only with 12
the Minister's approval. 13
(3) The approval may be given on the conditions the Minister considers 14
appropriate. 15
(4) A condition may require the holder to pay petroleum royalty for 16
petroleum produced from production testing for all or part of the period 17
that starts at the end of the 30 days and ends when the approval ends. 18
153 Obligation to consult with particular owners and occupiers 19
(1) A petroleum lease holder must consult, or use reasonable endeavours 20
to consult, with each owner and occupier of private or public land on which 21
authorised activities for the lease are, or are likely to be, carried out. 22
(2) The consultation must be about the carrying out of authorised 23
activities for the lease (including, for example, crossing access land for the 24
lease) to the extent they relate to the owners and occupiers. 25
(3) The consultation must be carried out in the way and at the times-- 26
(a) provided for in the lease; or 27
179 See, in particular, the Greenhouse Gas Benchmark Rule (Generation) No. 2 of 2003,
paragraph 10.1 (Total greenhouse gas emissions), made under the Electricity Supply
Act 1995 (NSW), section 97K (Greenhouse gas benchmark rules).
s 154 140 s 156
Petroleum and Gas (Production and Safety) Bill 2004
(b) if the lease does not provide for how the consultation must be 1
carried out--approved by the Minister. 2
(4) This section does not limit chapter 5, part 2 or 3.180 3
(5) A failure to comply with this section does not prevent authorised 4
activities for the lease from being carried out. 5
154 Obligation to commence production 6
(1) A petroleum lease holder must start petroleum production under the 7
lease on or before the later of the following-- 8
(a) the end of 2 years after the lease takes effect; 9
(b) any production commencement day for the lease. 10
(2) However, subsection (1) does not apply if the development plan for 11
the lease only provides for natural underground reservoir storage. 12
155 Petroleum royalty and annual rent 13
(1) A petroleum lease holder must pay the State-- 14
(a) petroleum royalty as required under chapter 6; and
181
15
(b) the annual rent, as prescribed under a regulation.182 16
(2) The annual rent must be paid in the way, and on or before the day, 17
prescribed under a regulation. 18
156 Civil penalty for nonpayment of annual rent 19
(1) If a petroleum lease holder does not pay the annual rent as required 20
under section 155, the holder must also pay the State a civil penalty. 21
(2) The amount of the penalty is 15% of the rent. 22
(3) The penalty-- 23
180 Chapter 5, part 2 (Private land) or 3 (Public land)
181 Chapter 6 (Petroleum royalty)
182 See also section 588 (Interest on amounts owing to the State other than for
petroleum royalty).
s 157 141 s 159
Petroleum and Gas (Production and Safety) Bill 2004
(a) must be paid on the day after the last day for payment of the rent; 1
and 2
(b) is still payable even if the holder later pays the rent. 3
157 Requirement to have development plan 4
The holder of a petroleum lease must have a development plan for the 5
lease. 6
7
Note--
8
The only `development plan' for a petroleum lease is its current initial or later
9
development plan as approved under division 4. See the definition of that term in
10
section 24. For the requirement to lodge a proposed later development plan and its
11
approval, see section 159 and division 4, subdivision 5.183
158 Compliance with development plan 12
(1) A petroleum lease holder must comply with the development plan for 13
the lease.184 14
(2) However, subsection (1) does not apply to a failure to comply with 15
the plan that is an act or omission by the holder to ensure compliance with 16
an insufficiency of supply direction under the Gas Supply Act 2003. 17
159 Obligation to lodge proposed later development plan 18
(1) This section imposes an obligation on a petroleum lease holder to 19
lodge a proposed later development plan for the lease. 20
21
Note--
22
1. For approval of the proposed plan, see division 4, subdivision 5.185
23
2. If the holder wishes to renew the lease, a proposed later development plan must be
24
included in the renewal application. See section 162(1).186
183 Division 4 (Development plans), subdivision 5 (Approval of proposed later
development plans)
Section 159 (Obligation to lodge proposed later development plan)
184 See also section 146 (Petroleum lease taken to have development plan until decision
on whether to approve proposed development plan).
185 Division 4, subdivision 5 (Approval of proposed later development plans).
186 Section 162 (Requirements for making renewal application)
s 159 142 s 159
Petroleum and Gas (Production and Safety) Bill 2004
(2) The obligation is complied with only if the proposed later 1
development plan-- 2
(a) is lodged at-- 3
(i) the office of the department for lodging proposed later 4
development plans, as stated in a gazette notice by the chief 5
executive; or 6
(ii) if no office is gazetted under subparagraph (i)--the office of 7
the chief executive; and 8
(b) complies with the later development plan requirements;187 and 9
(c) is accompanied by the relevant fee. 10
(3) A proposed later development plan must be lodged-- 11
(a) at least 40, but no more than 80, business days before the end of 12
the plan period for its current development plan (the "current 13
plan period"); or 14
(b) as soon as reasonably practicable after the holder becomes aware 15
of the need to change an authorised activity for the lease that will 16
significantly change the type or extent of an activity provided for 17
under the development plan. 18
(4) However, if before the end of the current plan period, a decision is 19
made not to approve a proposed later development plan lodged under 20
subsection (3), the holder may, within the period, lodge another proposed 21
later development plan. 22
(5) If the holder does not lodge any proposed later development plan 23
before the end of the current plan period-- 24
(a) the holder must be given a notice requiring the holder to lodge a 25
proposed later development plan for the lease within 20 business 26
days after the giving of the notice; and 27
(b) the holder must comply with the requirement. 28
(6) In this section-- 29
"relevant fee", for the lodgment of the proposed plan, means-- 30
(a) if the proposed plan is lodged within the time required under 31
under subsection (3)--the fee prescribed under a regulation; or 32
187 See division 4, subdivision 4 (Requirements for proposed later development plans).
s 160 143 s 161
Petroleum and Gas (Production and Safety) Bill 2004
(b) if the proposed plan is lodged after the time required under 1
subsection (3) and-- 2
(i) if it is lodged under subsection (4)--nil; or 3
(ii) if it is not lodged under subsection (4) and it is lodged 4
before the end of the current plan period--an amount that is 5
10 times the prescribed fee; or 6
(iii) it is not lodged under subsection (4) and it is lodged after 7
the end of the current plan period--an amount that is 8
20 times the prescribed fee. 9
160 Consequence of failure to comply with notice to lodge proposed 10
later development plan 11
(1) If a petroleum lease holder does not comply with a requirement 12
under section 159(5)(a), the lease is cancelled. 13
(2) However, the cancellation does not take effect until the holder is 14
given a notice stating that the lease has been cancelled because of the 15
operation of subsection (1). 16
Division 6--Renewals 17
161 Conditions for renewal application 18
(1) A petroleum lease holder may apply to renew the lease only if none 19
of the following is outstanding-- 20
(a) annual rent for the lease; 21
(b) a civil penalty under section 156 for nonpayment of annual rent; 22
(c) interest payable under section 588188 on annual rent or a civil 23
penalty; 24
(d) petroleum royalty for petroleum produced under the lease and 25
any unpaid petroleum royalty interest on it; 26
(e) security for the lease, as required under section 488.189 27
188 Section 588 (Interest on amounts owing to the State other than for petroleum
royalty)
189 Section 488 (Power to require security for petroleum authority)
s 162 144 s 162
Petroleum and Gas (Production and Safety) Bill 2004
(2) Also, the application can not be made-- 1
(a) more than 80 business days before the end of the term of the 2
lease; or 3
(b) after the lease has ended. 4
(3) However, the Minister may allow the application to be made up to 5
2 years before the end of the term of the lease if the Minister is of the 6
opinion that-- 7
(a) a storage agreement is in force for the lease or the holder has 8
negotiated, or is negotiating, a proposed storage agreement for 9
the lease; and 10
(b) the agreement or proposed agreement will be in force after the 11
proposed renewed lease takes effect. 12
162 Requirements for making renewal application 13
(1) The application must-- 14
(a) be in the approved form; and 15
(b) be lodged at-- 16
(i) the office of the department for lodging petroleum lease 17
renewal applications, as stated in a gazette notice by the 18
chief executive; or 19
(ii) if no office is gazetted under subparagraph (i)--the office 20
stated in the approved form; or 21
(iii) otherwise--the office of the chief executive; and 22
(c) state whether or not the development plan for the petroleum lease 23
has been complied with; and 24
(d) if the development plan has not been complied with--state 25
details of, and the reasons for, each noncompliance; and 26
(e) include a proposed later development plan for the renewed lease; 27
and 28
(f) include a statement about how and when the applicant proposes 29
to consult with, and keep informed, each owner and occupier of 30
s 163 145 s 163
Petroleum and Gas (Production and Safety) Bill 2004
private or public land on which authorised activities for the 1
renewed lease are, or are likely to be, carried out;190 and 2
(g) state whether or not the applicant has complied with chapter 5, 3
part 7,191 for reports required to be lodged in relation to the lease; 4
and 5
(h) be accompanied by-- 6
(i) the application fee prescribed under a regulation; and 7
(ii) if the application is made less than 40 business days before 8
the end of the term of the lease--the late fee prescribed 9
under a regulation. 10
(2) The proposed later development plan must comply with the later 11
development plan requirements.192 12
163 Continuing effect of lease for renewal application 13
(1) This section applies if the term of the petroleum lease ends before the 14
application is decided. 15
(2) Despite the ending of the term, the lease continues in force until the 16
earlier of the following to happen-- 17
(a) the start of any renewed term of the lease; 18
(b) a refusal of the application takes effect;193 19
(c) the application is withdrawn; 20
(d) the lease is cancelled under this Act.194 21
(3) If the lease is renewed, subsection (2) is taken never to have applied 22
for the period from the end of the term of the lease being renewed, as stated 23
in that lease.195 24
190 See section 153 (Obligation to consult with particular owners and occupiers).
191 Chapter 5, part 7 (Reporting)
192 See division 4, subdivision 4 (Requirements for proposed later development plans).
For approval of the proposed plan, see division 4, subdivision 5 (Approval of
proposed later development plans).
193 See section 167 (When refusal takes effect).
194 See also section 146 (Petroleum lease taken to have development plan until decision
on whether to approve proposed development plan).
195 See section 165(4) (Provisions and term of renewed lease).
s 164 146 s 165
Petroleum and Gas (Production and Safety) Bill 2004
164 Deciding application 1
(1) The Minister may grant or refuse the renewal. 2
(2) However-- 3
(a) before deciding to grant the renewal, the Minister must decide 4
whether to approve the applicant's proposed later development 5
plan for the renewed petroleum lease;196 and 6
(b) the renewal can not be granted unless-- 7
(i) the proposed plan has been approved; and 8
(ii) the Minister considers the applicant satisfies the capability 9
criteria and has substantially complied with the lease being 10
renewed; and 11
(iii) a relevant environmental authority for the renewed lease has 12
been issued. 13
(3) Also, the Minister may, as a condition of deciding to grant the 14
application, require the applicant to do all or any of the following within a 15
stated reasonable period-- 16
(a) pay the annual rent for the first year of the renewed lease; 17
(b) give, under section 488,197 security for the renewed lease. 18
(4) If the applicant does not comply with the requirement, the 19
application may be refused. 20
165 Provisions and term of renewed lease 21
(1) Subject to this section, section 123198 applies to the renewed 22
petroleum lease as if it were a petroleum lease granted under division 2.199 23
(2) The conditions or other provisions of the renewed lease may be 24
different from the conditions or other provisions of the petroleum lease 25
being renewed. 26
196 See division 4, subdivision 5 (Approval of proposed later development plan).
197 Section 488 (Power to require security for petroleum authority)
198 Section 123 (Provisions of petroleum lease)
199 Division 2 (Transition from authority to prospect to petroleum lease)
s 166 147 s 166
Petroleum and Gas (Production and Safety) Bill 2004
(3) The area of the renewed lease must not be more than the area of the 1
petroleum lease being renewed immediately before the renewed lease is to 2
take effect. 3
(4) If the renewal is decided before the end of the term of the petroleum 4
lease being renewed as stated in that lease (the "previous term"), the term 5
of the renewed lease is taken to start from the end of the previous term. 6
(5) If the renewed lease is decided after the previous term, the term of the 7
renewed lease starts immediately after the end of the previous term, but-- 8
(a) the conditions of the renewed lease do not start until the lease 9
holder is given notice of them; and 10
(b) until the notice is given, the conditions of the petroleum lease 11
being renewed apply to the renewed lease as if they were its 12
conditions. 13
(6) The term of the renewed lease must not be more than-- 14
(a) if it has not been previously renewed--the original term of the 15
lease; or 16
(b) if it has been previously renewed--its last renewed term. 17
166 Information notice about refusal 18
On refusal of the application, the applicant must be given an information 19
notice about the decision to refuse. 20
s 167 148 s 168
Petroleum and Gas (Production and Safety) Bill 2004
167 When refusal takes effect 1
A refusal of the application does not take effect until the end of the 2
appeal period for the decision to refuse.200 3
Division 7--Miscellaneous provisions 4
Subdivision 1--Area and term of petroleum lease 5
168 Area of petroleum lease 6
(1) This section provides for the area of a petroleum lease. 7
(2) The area does not include excluded land for the lease. 8
(3) Unless the Minister otherwise decides, the area must form a single 9
parcel of land. 10
(4) The area must not include any of the following ("unavailable 11
land")-- 12
(a) land in the area of another petroleum tenure, other than land that 13
will, under section 101,201 cease to be included in the area of an 14
authority to prospect on the grant of the lease; 15
(b) excluded land for another petroleum tenure; 16
(c) land in the area of a 1923 Act petroleum tenure; 17
(d) excluded land for a 1923 Act petroleum tenure; 18
(e) land that a regulation prescribes as land over which a petroleum 19
lease can not be granted. 20
(5) To remove any doubt, it is declared that if land within any sub-block 21
that the lease states is included in the area of the lease ceases to be 22
unavailable land, the cessation itself does not cause the land to be within 23
the area of the lease. 24
(6) For subsection (5), if the lease states that its area includes land within 25
a block without including or excluding any particular sub-block, the 26
reference to the block is a reference to all sub-blocks within the block. 27
200 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
201 Section 101 (Area of authority to prospect reduced on grant of petroleum lease)
s 169 149 s 170
Petroleum and Gas (Production and Safety) Bill 2004
(7) The area may include a part of a sub-block only if the part is all areas 1
within the sub-block that are left after taking away all unavailable land 2
within the sub-block (a "residual sub-block"). 3
(8) The area must be no more than 75 sub-blocks or residual sub-blocks, 4
in any combination. 5
169 Minister's power to decide excluded land 6
(1) The Minister may, at any time, decide excluded land for a petroleum 7
lease or proposed petroleum lease.202 8
(2) However, excluded land-- 9
(a) must be within any sub-block that the lease states is included in 10
the area of the lease; and 11
(b) can not be a whole sub-block. 12
(3) For subsection (2)(a), if the lease states that its area includes land 13
within a block without including or excluding any particular sub-block, the 14
reference to the block is a reference to all sub-blocks within the block. 15
(4) Excluded land may be described in a way the Minister considers 16
appropriate, including, for example, by area or by reference to a stated type 17
of land. 18
(5) Land ceases to be excluded land for a petroleum lease if, for any 19
reason, the sub-block in which the land is located ceases to be in the area of 20
the lease. 21
170 Minister may add excluded land 22
(1) The Minister may amend a petroleum lease by adding excluded land 23
for the lease to its area only if-- 24
(a) the lease as amended complies with section 168; and 25
(b) the lease holder consents. 26
(2) If land mentioned in subsection (1) is added to the area of the lease, 27
the land ceases to be excluded land for the lease. 28
202 See sections 123 (Provisions of petroleum lease), 133 (Provisions of petroleum
lease) and 165 (Provisions and term of renewed lease).
s 171 150 s 171
Petroleum and Gas (Production and Safety) Bill 2004
(3) The Minister may amend the provisions of the lease in a way that 1
reflects the inclusion of the excluded land.203 2
(4) Also, the Minister may give the lease holder a notice-- 3
(a) withdrawing, from a stated day, the approval of the development 4
plan for the lease; and 5
(b) directing the holder to lodge at the relevant office a proposed 6
later development plan for the lease that-- 7
(i) complies with the later development plan requirements; and 8
(ii) changes the development plan for the lease to reflect the 9
inclusion of the excluded land. 10
(5) The amended provisions of the lease or the proposed later 11
development plan must not be-- 12
(a) inconsistent with the mandatory conditions for petroleum leases; 13
or 14
(b) the same as, or substantially the same as, or inconsistent with, 15
any relevant environmental condition for the lease. 16
(6) In this section-- 17
"relevant office" means-- 18
(a) the office of the department for lodging proposed later 19
development plans, as stated in a gazette notice by the chief 20
executive; or 21
(b) if no office is gazetted under paragraph (a)--the office of the 22
chief executive. 23
Subdivision 2--Dividing petroleum leases 24
171 Applying to divide 25
(1) The holder of a petroleum lease (the "original lease") may apply to 26
divide it into 2 or more petroleum leases (the "new leases"). 27
(2) However, the holder may apply for a new lease to be granted to 28
another person only if the other person-- 29
203 See also section 488 (Power to require security for petroleum authority).
s 172 151 s 172
Petroleum and Gas (Production and Safety) Bill 2004
(a) agrees to the proposed grant; and 1
(b) is an eligible person. 2
(3) Despite subsections (1) and (2), the holder can not make the 3
application if any of the following is outstanding-- 4
(a) annual rent for the original lease; 5
(b) a civil penalty under section 156 for nonpayment of annual rent; 6
(c) interest payable under section 588204 on annual rent or a civil 7
penalty; 8
(d) petroleum royalty payable for petroleum produced under the 9
original lease and any unpaid petroleum royalty interest on it; 10
(e) security for the original lease, as required under section 488.205 11
172 Requirements for making application 12
The application must-- 13
(a) be in the approved form; and 14
(b) be lodged at-- 15
(i) the office of the department for lodging applications to 16
divide a petroleum lease, as stated in a gazette notice by the 17
chief executive; or 18
(ii) if no office is gazetted under subparagraph (i)--the office 19
stated in the approved form; or 20
(iii) otherwise--the office of the chief executive; and 21
(c) state whether or not the development plan for the original lease 22
has been complied with; and 23
(d) if the development plan for the original lease has not been 24
complied with--state details of, and the reasons for, each 25
noncompliance; and 26
204 Section 588 (Interest on amounts owing to the State other than for petroleum
royalty)
205 Section 488 (Power to require security for petroleum authority)
s 173 152 s 173
Petroleum and Gas (Production and Safety) Bill 2004
(e) include a proposed later development plan for each proposed 1
new lease;206 and 2
(f) address the capability criteria for each proposed holder of the 3
new leases; and 4
(g) state whether or not the holder has complied with chapter 5, 5
part 7,207 for reports required to be lodged in relation to the 6
original lease; and 7
(h) be accompanied by the fee prescribed under a regulation. 8
173 Deciding application 9
(1) The Minister may make or refuse to make the division. 10
(2) However-- 11
(a) before deciding to make the division, the Minister must decide 12
whether to approve the proposed later development plans for the 13
new leases;208 and 14
(b) the division can not be made unless-- 15
(i) the proposed plans have been approved; and 16
(ii) the applicant has established 1 of the matters mentioned in 17
section 121(2);209 and 18
(iii) each proposed holder of the new leases satisfies the 19
capability criteria; and 20
(iv) the Minister is satisfied the applicant continues to satisfy 21
any special criteria that applied for deciding the application 22
for the original lease;210 and 23
(v) the Minister is satisfied the applicant has substantially 24
complied with the original lease. 25
206 For an additional requirement for the proposed development plans, see section 144
(Later development plans for proposed new leases).
207 Chapter 5, part 7 (Reporting)
208 See division 4, subdivision 5 (Approval of proposed later development plans).
209 Section 121 (Requirements for grant)
210 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
s 174 153 s 175
Petroleum and Gas (Production and Safety) Bill 2004
(3) The matters that may be considered in making the division include 1
the development plan for the original lease, the proposed later development 2
plans and the capability criteria. 3
(4) The Minister may, as a condition of making the division, require the 4
applicant to, under section 488,211 to give security or additional security for 5
all or any of the new leases within a stated reasonable period. 6
(5) If the applicant does not comply with the requirement, the division 7
may be refused. 8
174 Provisions of new leases 9
(1) Subject to this section, section 123 applies for the provisions of a 10
new lease as if it were a petroleum lease granted under division 2.212 11
(2) However, the term of each new lease must not end later than the end 12
of the term of the original lease. 13
(3) For any relinquishment condition for the new leases-- 14
(a) the new leases are taken to have originally taken effect when the 15
original lease originally took effect; and 16
(b) land within any sub-block that the original lease states is 17
included in the area of the original lease is divided rateably 18
between the new leases; and 19
(c) for working out previous relinquishments that are counted for the 20
relinquishment condition for each new lease, the relinquishments 21
previously counted for the relinquishment condition for the 22
original lease are divided rateably between the new leases. 23
175 Steps after deciding application 24
(1) After the provisions of the new leases are decided, the applicant and 25
anyone else who will be a holder of any new lease, must be given notice of 26
the relevant provisions and development plans.213 27
211 Section 488 (Power to require security for petroleum authority)
212 Section 123 (Provisions of petroleum lease)
Division 2 (Transition from authority to prospect to petroleum lease)
213 For noncompliance action started, or that could have been taken, against the original
lease holder, see section 792 (Provision for divided petroleum tenures).
s 176 154 s 177
Petroleum and Gas (Production and Safety) Bill 2004
(2) On refusal to make the division, the applicant must be given notice of 1
the refusal. 2
PART 3--DATA ACQUISITION AUTHORITIES 3
Division 1--Obtaining data acquisition authority 4
176 Who may apply for data acquisition authority 5
(1) A petroleum tenure holder may apply for a data acquisition authority 6
to allow the applicant to carry out the following activities ("data 7
acquisition activities")-- 8
(a) geophysical surveys on land (the "data acquisition land") 9
contiguous to land in the area of the tenure to enable the 10
applicant to acquire data relevant to authorised activities under 11
the tenure; 12
(b) the entering of the data acquisition land to carry out the 13
geophysical surveys. 14
(2) However, the application can not be made or granted for land in the 15
area of another petroleum tenure. 16
177 Requirements for making application 17
The application must be-- 18
(a) in the approved form; and 19
(b) lodged at-- 20
(i) the office of the department for lodging data acquisition 21
authority applications, as stated in a gazette notice by the 22
chief executive; or 23
(ii) if no office is gazetted under subparagraph (i)--the office 24
stated in the approved form; or 25
(iii) otherwise--the office of the chief executive; and 26
(c) accompanied by the fee prescribed under a regulation. 27
s 178 155 s 179
Petroleum and Gas (Production and Safety) Bill 2004
178 Deciding application for data acquisition authority 1
(1) The Minister may grant or refuse the data acquisition authority. 2
(2) However, the data acquisition authority can not be granted unless a 3
relevant environmental authority for the data acquisition authority has been 4
issued. 5
(3) The authority must state its term and the area subject to the authority. 6
(4) The term must end no later than 1 year after the authority takes effect. 7
(5) The authority may also state-- 8
(a) conditions or other provisions of the authority, other than 9
conditions or provisions that are-- 10
(i) inconsistent with section 180 or 181 or any other mandatory 11
condition for data acquisition authorities; or 12
13
Note--
14
Chapter 5 also imposes mandatory conditions on data acquisition
15
authorities. In particular, see chapter 5, part 8.214
(ii) inconsistent with a condition of the petroleum tenure to 16
which the authority relates; or 17
(iii) the same as, or substantially the same as, or inconsistent 18
with, any relevant environmental condition for the authority; 19
and 20
(b) the day it takes effect. 21
(6) However, the provisions of the authority may exclude or restrict the 22
carrying out of data acquisition activities. 23
179 Notice of refusal 24
On refusal of the application, the applicant must be given notice of the 25
decision to refuse.215 26
214 Chapter 5, part 8 (General provisions for conditions and related provisions)
215 See also the Judicial Review Act 1991, section 32 (Request for statement of
reasons).
s 180 156 s 181
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Provisions for data acquisition authorities216 1
180 Key authorised activities 2
(1) A data acquisition authority authorises its holder to carry out data 3
acquisition activities in the area of the authority. 4
(2) The authorised activities may be carried out despite the rights of an 5
owner or occupier of land on which they are exercised. 6
(3) However, the carrying out of the data acquisition activities is subject 7
to-- 8
(a) section 6; and 9
(b) chapter 3, part 4, division 2; and 10
(c) chapter 5; and 11
(d) the mandatory and other conditions of the authority; and 12
(e) any exclusion or restriction provided for in the authority on the 13
carrying out of the activities.217 14
181 Additional condition of relevant petroleum tenure 15
If a condition is imposed on a data acquisition authority (the "authority 16
condition"), it is a condition of the petroleum tenure to which the authority 17
relates that the tenure holder must comply with the authority condition. 18
19
Note--
20
Chapter 5 also imposes mandatory conditions on data acquisition authorities. In
21
particular, see chapter 5, part 2, division 3 and chapter 5, part 8.218
216 See also chapter 5 (Common petroleum authority provisions).
217 Section 6 (Relationship with Mineral Resources Act)
Chapter 3 (Provisions for coal seam gas), part 4, division 2 (Restriction on
authorised activities on coal mining lease or oil shale mining lease land)
Chapter 5 (Common petroleum authority provisions)
218 Chapter 5, part 2, division 3 (Access to private land outside area of petroleum
authority) and part 8 (General provisions for conditions and authorised activities)
s 182 157 s 184
Petroleum and Gas (Production and Safety) Bill 2004
182 Authority holder is the relevant petroleum tenure holder from 1
time to time 2
The holder of a data acquisition authority is taken to be the person who, 3
from time to time, holds the petroleum tenure to which the authority 4
relates. 5
183 Authority ends if relevant petroleum tenure ends 6
A data acquisition authority ends if the petroleum tenure to which it 7
relates ends. 8
184 Relationship with subsequent petroleum tenure 9
(1) This section applies if a petroleum tenure is granted over land in the 10
area of a data acquisition authority 11
(2) The grant does not limit the authority or its term. 12
(3) However, an authorised activity for the authority may be carried out 13
on the land only if-- 14
(a) carrying out the activity does not adversely affect the carrying 15
out of an authorised activity for the tenure; or 16
(b) the agreement conditions have been complied with. 17
(4) In this section-- 18
"agreement conditions" means that-- 19
(a) the tenure holder has agreed in writing to the carrying out of the 20
activity; and 21
(b) a copy of the agreement has been lodged at-- 22
(i) the office of the department for lodging the agreement, as 23
stated in a gazette notice by the chief executive; or 24
(ii) if no office is gazetted under subparagraph (i)--the office of 25
the chief executive; and 26
(c) the agreement is still in force. 27
s 185 158 s 185
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--WATER RIGHTS FOR PETROLEUM 1
TENURES 2
185 Underground water rights 3
(1) A petroleum tenure holder may do any of the following in relation to 4
underground water in the area of the tenure-- 5
(a) take or interfere with the water if taking or interference happens 6
during the course of, or results from, the carrying out of another 7
authorised activity for the tenure; 8
9
Examples--
10
1. Underground water necessarily or unavoidably taken during the
11
drilling of a petroleum well or water observation bore.
12
2. Underground water necessarily or unavoidably taken during petroleum
13
production authorised under section 32 or 109.219
(b) use water mentioned in paragraph (a) for carrying out of another 14
authorised activity for the tenure; 15
(c) take or interfere with the water for use in the carrying out of 16
another authorised activity for the tenure.220 17
(2) The rights under subsection (1) are the "underground water rights" 18
for the petroleum tenure. 19
(3) There is no limit to the volume of water that may be taken under the 20
underground water rights. 21
(4) Underground water taken or interfered with, under subsection (1)(a), 22
from a petroleum well is "associated water". 23
(5) The tenure holder may use associated water only for an another 24
authorised activity for the tenure. 25
219 Section 32 (Exploration and testing) or 109 (Exploration, production and storage
activities)
220 Part 1, division 1 and part 2, division 1 (Key authorised activities)
s 186 159 s 187
Petroleum and Gas (Production and Safety) Bill 2004
1
Note--
2
If the tenure holder wishes to use associated water for another purpose, the holder must
3
obtain a water licence. See sections 188 and 189 and the Water Act, section 19. To
4
obtain a water licence see the Water Act, chapter 2, part 6.221
(6) The taking or interference with water under subsection (1)(c) may be 5
carried out by drilling a bore. 6
(7) The bore and its casing, wellhead and any other works constructed in 7
connection with it is a "water supply bore". 8
(8) In this section-- 9
"another authorised activity", for the petroleum tenure, means an 10
authorised activity for the tenure under part 1, division 1 or part 2, 11
division 1. 12
186 Right to allow use of associated water for domestic or stock 13
purposes 14
A petroleum tenure holder may allow an owner or occupier of any of the 15
following land to use, on that land, associated water taken by the tenure 16
holder for domestic purposes or stock purposes-- 17
(a) land in the area of the tenure; 18
(b) land that-- 19
(i) joins land in the area of the tenure; and 20
(ii) is owned by the same person.222 21
187 Water monitoring activities 22
(1) A petroleum tenure holder may carry out any of the following 23
activities in the area of the tenure to comply with, or assess the need to 24
comply with, the make good obligation for the tenure-- 25
(a) gathering information about, or auditing, an existing Water Act 26
bore; 27
221 Sections 188 (Authorisation for Water Act) and 189 (Water Act not otherwise
affected). Water Act section 19 (Rights in all water vests in State) and chapter 2,
part 6 (Water licences and permits)
222 For taking of associated water for other purposes, see the Water Act, chapter 2,
part 6 (Water licences and permits).
s 188 160 s 189
Petroleum and Gas (Production and Safety) Bill 2004
(b) gathering information for an underground water impact report, 1
pre-closure report, monitoring report or review report; 2
(c) monitoring the effect of the exercise of the underground water 3
rights for the tenure; 4
(d) constructing or plugging and abandoning a water observation 5
bore; 6
(e) carrying out restoration measures in relation to an existing Water 7
Act bore for which the make good obligation applies. 8
(2) An activity authorised under this section is a "water monitoring 9
activity". 10
188 Authorisation for Water Act 11
For the Water Act, the following are taken to be authorised-- 12
(a) the taking or interference with or the use of water, under the 13
underground water rights; 14
(b) the use, under section 186, of associated water.223 15
189 Water Act not otherwise affected 16
To remove any doubt, it is declared that a petroleum tenure holder can 17
not take or interfere with or use water as defined under the Water Act unless 18
the taking or interference or use is authorised under this part or the Water 19
Act.224 20
223 See the Water Act, section 808 (Unauthorised taking, supplying or interfering with
water).
224 See Water Act, sections 20 (Authorised taking of water without water entitlement)
and 808 (Unauthorised taking, supplying or interfering with water).
s 190 161 s 192
Petroleum and Gas (Production and Safety) Bill 2004
PART 5--WATER MONITORING AUTHORITIES 1
Division 1--Obtaining water monitoring authority 2
190 Who may apply for water monitoring authority 3
(1) A petroleum tenure holder may apply for a water monitoring 4
authority for stated land to allow the holder to comply with, or assess the 5
need to comply with, the make good obligation for the tenure. 6
(2) The application may be made or granted for-- 7
(a) land in the area of another petroleum authority; and 8
(b) 1 or more petroleum tenures held by the same applicant. 9
191 Requirements for making application 10
The application must be-- 11
(a) in the approved form; and 12
(b) lodged at-- 13
(i) the office of the department for lodging water monitoring 14
authority applications, as stated in a gazette notice by the 15
chief executive; or 16
(ii) if no office is gazetted under subparagraph (i)--the office 17
stated in the approved form; or 18
(iii) otherwise--the office of the chief executive; and 19
(c) accompanied by the fee prescribed under a regulation. 20
192 Deciding application for water monitoring authority 21
(1) The Minister may grant or refuse the water monitoring authority. 22
(2) However, the water monitoring authority must not be granted unless 23
a relevant environmental authority for the water monitoring authority has 24
been issued. 25
(3) The authority must state its area and each petroleum tenure to which 26
it relates. 27
(4) The authority may also state-- 28
s 193 162 s 193
Petroleum and Gas (Production and Safety) Bill 2004
(a) conditions or other provisions of the authority, other than 1
conditions or provisions that are-- 2
(i) inconsistent with division 2 or section 202225 or any other 3
mandatory condition for water monitoring authorities; or 4
5
Note--
6
Chapter 5 also imposes mandatory conditions on water monitoring
7
authorities. In particular, see chapter 5, part 8.226
(ii) inconsistent with a condition of any petroleum tenure to 8
which the authority relates; or 9
(iii) the same as, or substantially the same as, or inconsistent 10
with, any relevant environmental condition for the authority; 11
and 12
(b) the day it takes effect. 13
(5) However, the provisions of the authority may exclude or restrict the 14
carrying out of water monitoring activities. 15
Division 2--Key authorised activities 16
193 Operation of div 2 17
(1) This division provides for the key authorised activities for a water 18
monitoring authority.227 19
(2) The authorised activities may be carried out despite the rights of an 20
owner or occupier of land on which they are exercised. 21
(3) However, the carrying out of the authorised activities is subject to-- 22
(a) sections 6, 197 and 198; and 23
(b) chapter 3, part 4, division 2; and 24
(c) chapter 5; and 25
(d) the mandatory and other conditions of the authority; and 26
225 Section 202 (Additional condition of relevant petroleum tenure)
226 Chapter 5, part 8 (General provisions for conditions and authorised activities)
227 For other authorised activities, see chapter 5, part 2, division 3 (Access to private
land outside area of petroleum authority) and part 8 (General provisions for
conditions and authorised activities).
s 194 163 s 197
Petroleum and Gas (Production and Safety) Bill 2004
(e) any exclusion or restriction provided for in the authority on the 1
carrying out of the activities.228 2
194 Water monitoring activities 3
The authority holder may carry out any water monitoring activity in the 4
area of the authority. 5
195 Limited right to take or interfere with underground water 6
The authority holder may take or interfere with underground water only 7
to the extent that the taking or interference is the unavoidable result of 8
carrying out a water monitoring activity in the area of the authority. 9
10
Example--
11
The taking of or interference with underground water during the drilling or
12
maintenance of a water observation bore in the area.
196 Authorisation for Water Act 13
For the Water Act, the taking of or interference with underground water, 14
under section 195, is taken to be authorised.229 15
197 Water Act not otherwise affected 16
To remove any doubt, it is declared that the water monitoring authority 17
holder can not take or interfere with water as defined under the Water Act 18
unless the taking or interference is authorised under this subdivision or the 19
Water Act.230 20
228 Section 6 (Relationship with Mineral Resources Act)
Chapter 3 (Provisions for coal seam gas), part 4, division 2 (Restriction on
authorised activities on coal mining lease or oil shale mining lease land)
Chapter 5 (Common petroleum authority provisions)
229 See the Water Act, section 808 (Unauthorised taking, supplying or interfering with
water).
230 See Water Act, sections 20 (Authorised taking of water without water entitlement)
and 808 (Unauthorised taking, supplying or interfering with water).
s 198 164 s 202
Petroleum and Gas (Production and Safety) Bill 2004
198 Restriction on carrying out authorised activities 1
In carrying out an authorised activity for the water monitoring authority, 2
the holder must not interfere with the carrying out of an authorised activity 3
for a petroleum tenure, or of another water monitoring authority, the area of 4
which includes the area of the area of the authority. 5
Maximum penalty--1 000 penalty units. 6
199 No right to petroleum discovered 7
To remove any doubt, it is declared that the discovery of petroleum while 8
carrying out an authorised activity for the authority does not, of itself, give 9
the authority holder a right to the petroleum. 10
Division 3--Miscellaneous provisions 11
200 Term of authority 12
Subject to chapter 10, part 2, division 4,231 a water monitoring authority 13
continues in force until there is no longer any petroleum tenure to which 14
the authority relates. 15
201 Provision for who is the authority holder if only 1 related 16
petroleum tenure 17
(1) This section applies if there is only 1 petroleum tenure to which a 18
water monitoring authority relates. 19
(2) The authority holder is taken to be the person who, from time to time, 20
holds the petroleum tenure to which the authority relates. 21
202 Additional condition of relevant petroleum tenure 22
If a condition is imposed on a water monitoring authority (the 23
"authority condition"), it is a condition of each petroleum tenure to which 24
the authority relates that the tenure holder must comply with the authority 25
condition. 26
231 Chapter 10, part 2, division 4 (Noncompliance procedure for all authorities under
Act)
s 203 165 s 203
Petroleum and Gas (Production and Safety) Bill 2004
203 Amending water monitoring authority by application 1
(1) The holder of a water monitoring authority may apply to amend it-- 2
(a) to increase or decrease its area; or 3
(b) to add or omit, or reflect an amendment of, a petroleum tenure 4
that relates to the authority. 5
(2) The holder can not apply to amend the authority in any other way. 6
(3) The application must be-- 7
(a) in the approved form; and 8
(b) lodged at-- 9
(i) the office of the department for lodging the application, as 10
stated in a gazette notice by the chief executive; or 11
(ii) if no office is gazetted under subparagraph (i)--the office 12
stated in the approved form; or 13
(iii) otherwise--the office of the chief executive; and 14
(c) accompanied by the fee prescribed under a regulation. 15
(4) The Minister may grant or refuse the amendment. 16
(5) The amendment may be granted (a "conditional grant") subject to 17
the applicant's written agreement to the Minister amending the authority in 18
a stated way that the Minister considers appropriate.232 19
(6) On refusal of the application or the making of a decision to make a 20
conditional grant, the applicant must be given an information notice about 21
the decision to refuse or to make the conditional grant. 22
232 See section 848 (Power to correct or amend).
See also chapter 5, part 1 (Security).
s 204 166 s 205
Petroleum and Gas (Production and Safety) Bill 2004
PART 6--THIRD PARTY STORAGE ACCESS TO 1
NATURAL UNDERGROUND RESERVOIRS 2
Division 1--Purpose of part 3
204 Purpose of pt 6 4
The purpose of this part is for the State to encourage appropriate use of 5
natural underground reservoirs for storage. 6
Division 2--Storage agreements and related provisions 7
Subdivision 1--Storage agreements 8
205 Meaning of "storage agreement" and "existing user" 9
(1) A petroleum lease holder may agree (a "storage agreement") with 10
someone else (an "existing user") to use a natural underground reservoir 11
in the area of the lease to store petroleum or a prescribed storage gas.233 12
(2) However, the lease holder can not enter into a storage agreement for 13
any of the reservoir's storage capacity already agreed to be provided under 14
another storage agreement. 15
(3) The existing user may agree with someone else to store petroleum or 16
a prescribed storage gas in the reservoir to the extent of its storage capacity 17
agreed to be used under the existing user's storage agreement with the lease 18
holder. 19
(4) However, the existing user may make the agreement only if it 20
complies with the storage agreement between the lease holder and the 21
existing user. 22
(5) An agreement under subsection (3) is also a "storage agreement". 23
(6) A person for whom petroleum or a prescribed storage gas is, or is 24
entitled to be, stored under a storage agreement under subsection (3) is also 25
an "existing user" of the reservoir. 26
233 See also section 220 (Preferred tender may make storage agreements).
s 206 167 s 208
Petroleum and Gas (Production and Safety) Bill 2004
206 Development plan overrides storage agreement 1
If a provision of a storage agreement conflicts with the development plan 2
for the relevant petroleum lease, the development plan prevails to the extent 3
of the inconsistency. 4
207 Existing user's obligation to give information 5
Each existing user of a natural underground reservoir in the area of a 6
petroleum lease must give the lease holder the information the holder 7
reasonably requires for the safe and reliable use of the reservoir. 8
Maximum penalty--500 penalty units. 9
Subdivision 2--Negotiation obligations of petroleum lease holders 10
and existing users 11
208 Application of sdiv 2 12
(1) This subdivision applies to a petroleum lease holder or an existing 13
user who has available storage capacity for a natural underground reservoir. 14
(2) A petroleum lease holder has "available storage capacity" for a 15
natural underground reservoir if the reservoir is in the area of the lease and 16
it has, or is likely to have, storage capacity that-- 17
(a) the lease holder has not already agreed to provide under a storage 18
agreement that is in force (the "contracted capacity"); and 19
(b) does not interfere with the carrying out of authorised activities 20
for the lease; and 21
(c) is either-- 22
(i) spare; or 23
(ii) would, if additions of plant were made, or works carried out 24
to increase the reservoir's storage capacity, be spare;234 and 25
(d) is technically and practicably feasible, safe and reliable to use. 26
(3) However, the contracted capacity, or a part of the contracted capacity, 27
becomes available storage capacity again if-- 28
234 Storage capacity mentioned in subparagraph (ii) is commonly called `developable
capacity'.
s 209 168 s 210
Petroleum and Gas (Production and Safety) Bill 2004
(a) the existing user of the reservoir gives the lease holder a notice 1
stating the user no longer requires that capacity; and 2
(b) the contracted capacity would otherwise be available storage 3
capacity under subsection (2). 4
(4) A notice under subsection (3)(a) may be given for all or a stated part 5
of the contracted capacity. 6
(5) An existing user of a natural underground reservoir has "available 7
storage capacity" if the reservoir has, or is likely to have, storage capacity 8
agreed to be provided to the existing user under a storage agreement that 9
the existing user is not using and does not expect to use. 10
209 Obligation to negotiate with proposed users 11
(1) A person (a "proposed user") may give the lease holder or existing 12
user a notice requiring the holder or existing user to, within a stated 13
reasonable time, start negotiations to attempt to reach a storage agreement 14
for available storage capacity for the reservoir. 15
(2) Subject to section 210, the holder or existing user must negotiate in 16
good faith with the proposed user to attempt to reach a fair and reasonable 17
storage agreement with the proposed user. 18
Maximum penalty for subsection (2)--500 penalty units. 19
210 Obligation about priority for proposed users 20
(1) If-- 21
(a) a petroleum lease holder or existing user has started negotiations 22
mentioned in section 209(2) (the "first negotiations") with a 23
proposed user; and 24
(b) after the start of the first negotiations, the lease holder or existing 25
user starts negotiations mentioned in section 209(2) (the "second 26
negotiations") with another proposed user; and 27
(c) the first negotiations have not ended; 28
the lease holder or existing user must, as far as practicable, ensure the first 29
negotiations are not unreasonably affected by the second negotiations. 30
Maximum penalty--500 penalty units. 31
s 211 169 s 211
Petroleum and Gas (Production and Safety) Bill 2004
(2) Despite subsection (1), the existing user has priority to negotiate for 1
the storage capacity of the reservoir that will, when the storage agreement 2
by the lease holder (the "existing agreement") ends, be available storage 3
capacity for the lease holder. 4
(3) However, the priority under subsection (2)-- 5
(a) applies only to the extent the storage capacity sought is no more 6
than the existing user's entitlement under the existing agreement 7
in the last year before it is to end according to its provisions; and 8
(b) ceases 2 years before the existing agreement ends. 9
211 Obligation to give information 10
(1) A proposed user may ask the lease holder or existing user for all 11
information that-- 12
(a) the lease holder or existing user has about the lease holder's or 13
existing user's available storage capacity for the reservoir; and 14
(b) is reasonably necessary to allow the proposed user to negotiate a 15
fair and reasonable storage agreement with the lease holder or 16
existing user. 17
18
Examples of possible information about available storage capacity--
19
the amount of the storage capacity and details of the nature and quality of gas already
20
stored in the reservoir
(2) The lease holder or existing user must-- 21
(a) give the information within a reasonable period after receiving 22
the request; and 23
(b) if the information has been sought by, or given to another 24
proposed user--ensure it is given on a non-discriminatory basis. 25
Maximum penalty--500 penalty units. 26
(3) For subsection (2)(b), information is given on a non-discriminatory 27
basis if it is-- 28
(a) the same, or substantially the same, information as that given to 29
other proposed users; or 30
(b) not so different from information given to other proposed users 31
as to disadvantage the proposed user. 32
s 212 170 s 213
Petroleum and Gas (Production and Safety) Bill 2004
(4) For subsection (3)(a), if the reservoir's available storage capacity has 1
changed since someone else was given the information, the information 2
given to the proposed user is taken to be substantially the same if, other 3
than for differences that reflect the change, it is the same or substantially 4
the same. 5
Division 3--Provisions for stored petroleum or prescribed storage gas 6
after petroleum lease ends 7
Subdivision 1--Preliminary 8
212 Application of div 3 9
(1) This division applies if-- 10
(a) a petroleum lease (the "old lease") ends; and 11
(b) a natural underground reservoir in the area of the old lease is, 12
under a storage agreement, being used to store petroleum or a 13
prescribed storage gas. 14
(2) For subsection (1)(a), if an application has been made to renew the 15
old lease and the application is refused, the old lease does not end until the 16
refusal takes effect.235 17
(3) Subsection (1) applies even if the storage agreement has, under its 18
own terms, ceased to have effect. 19
Subdivision 2--Claiming stored petroleum or prescribed storage gas 20
213 Notice to claim for stored petroleum or prescribed storage gas 21
(1) The Minister must by gazette notice, invite anyone who claims 22
ownership of the stored petroleum or prescribed storage gas to make that 23
claim by giving a notice that complies with subsection (2) (a "notice of 24
claim"). 25
(2) A notice of claim must-- 26
235 See section 167 (When refusal takes effect).
s 214 171 s 215
Petroleum and Gas (Production and Safety) Bill 2004
(a) be lodged at the following office within 30 business days after 1
the gazettal-- 2
(i) the office of the department for lodging notices of claim, as 3
stated in a gazette notice by the chief executive; 4
(ii) if no office is gazetted under subparagraph (i)--the office of 5
the chief executive; and 6
(b) state details, and include evidence of, each of the following-- 7
(i) any relevant storage agreement; 8
(ii) how the claimant became the owner of the stored petroleum 9
or prescribed storage gas; 10
(iii) how much of the stored petroleum or prescribed storage gas 11
is claimed; 12
(iv) steps taken by the claimant to recover the stored petroleum 13
or prescribed storage gas during the term of the old lease; 14
and 15
(c) be accompanied by the fee for deciding the claim, as prescribed 16
under a regulation. 17
214 Property in stored petroleum or prescribed storage gas if no 18
notice of claim 19
If no notice of claim is lodged within the 30 business days, the stored 20
petroleum and prescribed storage gas is taken to have become the property 21
of the State immediately after the old lease ended.236 22
Subdivision 3--Deciding claims 23
215 Deciding claims 24
(1) This section applies if within the 30 business days, a notice of claim 25
is lodged. 26
236 For property in other petroleum in the reservoir, see section 26 (Petroleum the
property of the State).
s 216 172 s 217
Petroleum and Gas (Production and Safety) Bill 2004
(2) The Minister must decide whether, immediately before the old lease 1
ended, the claimant owned any of the stored petroleum or prescribed 2
storage gas. 3
(3) The Minister may decide that the claimant does not own any of the 4
stored petroleum or prescribed storage gas if the Minister considers the 5
claimant did not take reasonable steps to recover it during the term of the 6
old lease. 7
(4) Subsection (3) applies even if the Minister would, other than for the 8
subsection, have decided that the claimant owned the stored petroleum or 9
prescribed storage gas immediately before the old lease ended. 10
(5) If it is decided that the claimant owns any of the stored petroleum or 11
prescribed storage gas, the claimant is taken to have been its owner from 12
when the old lease ended. 13
(6) On deciding a claimant does not own any the stored petroleum or 14
prescribed storage gas claimed, the claimant must be given an information 15
notice about the decision. 16
216 State property in stored petroleum or prescribed storage gas to 17
extent claims are not upheld 18
(1) If, under section 215, it is decided that no claimant owned any of the 19
stored petroleum or prescribed storage gas, the gas is taken to have become 20
the property of the State immediately after the old lease ended. 21
(2) If, under section 215, it is decided that no claimant owned part of the 22
stored petroleum or prescribed storage gas, that part is taken to have 23
become the property of the State immediately after the old lease ended. 24
Subdivision 4--Dealing with upheld claims 25
217 Application of sdiv 4 26
This subdivision applies if, under section 215, it is decided any claimant 27
owns any of the stored petroleum or prescribed storage gas. 28
s 218 173 s 219
Petroleum and Gas (Production and Safety) Bill 2004
218 Call for tenders required 1
The Minister must make a call for tenders under section 127237 for a 2
proposed petroleum lease the area of which includes the reservoir. 3
219 Requirement to notify change in ownership 4
(1) If the claimant ceases to own any of the stored petroleum or 5
prescribed storage gas, the claimant must lodge at the relevant office a 6
notice stating-- 7
(a) the name and contact details of any new owner of the stored 8
petroleum or prescribed storage gas; and 9
(b) how much of the stored petroleum or prescribed storage gas the 10
new owner became the owner of. 11
(2) If the new owner, or any one who subsequently acquires any of the 12
stored petroleum or prescribed storage gas, ceases to own any of the stored 13
petroleum or prescribed storage gas, the new owner or other person must 14
lodge a notice under subsection (1) at the relevant office. 15
(3) This section does not apply or ceases to apply if-- 16
(a) the petroleum or prescribed storage gas ceases to be stored in the 17
reservoir; or 18
(b) the claimant or any new owner is granted a petroleum lease the 19
area of which includes the reservoir; or 20
(c) a storage agreement is made for the stored petroleum or 21
prescribed storage gas to which agreement the claimant or any 22
new owner is a party; or 23
(d) under section 226,238 the stored petroleum or prescribed storage 24
gas becomes the property of the State. 25
(4) In this section-- 26
"relevant office" means-- 27
(a) the office of the department for lodging notice of change of 28
ownership, as stated in a gazette notice by the chief executive; or 29
237 Section 127 (Call for tenders)
238 Section 226 (State property in stored petroleum or prescribed storage gas in
particular circumstances)
s 220 174 s 222
Petroleum and Gas (Production and Safety) Bill 2004
(b) if no office is gazetted under paragraph (a)--the office of the 1
chief executive.