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This is a Bill, not an Act. For current law, see the Acts databases.


PETROLEUM AND OTHER LEGISLATION AMENDMENT BILL 2004

         Queensland



Petroleum and Other
Legislation Amendment
Bill 2004

 


 

 

Queensland Petroleum and Other Legislation Amendment Bill 2004 Contents Page Part 1 Preliminary 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Part 2 Amendment of Petroleum Act 1923 3 Act amended in pt 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 4 Amendment of s 2 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . 32 5 Replacement of s 3 (Words and expressions used in Mineral Resources Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 3 Relationship with Mineral Resources Act . . . . . . . . . . 49 4 Relationship with Nature Conservation Act 1992 . . . . 50 6 Amendment of s 7 (Application of Act) . . . . . . . . . . . . . . . . . . . . . 50 7 Insertion of new s 7B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 7B Notes in text . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 8 Omission of pt 2 (Petroleum Advisory Board) . . . . . . . . . . . . . . . 51 9 Amendment of s 10 (Reservations in grants) . . . . . . . . . . . . . . . . 51 10 Omission of ss 11­16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 11 Replacement of pt 4, heading (Prospecting permits and leases). 51 12 Omission of s 17 (Permits and leases). . . . . . . . . . . . . . . . . . . . . 51 13 Amendment of s 18 (Authority to prospect) . . . . . . . . . . . . . . . . . 51 14 Insertion of new s 18A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 18A Minister's power to decide excluded land for authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 15 Replacement of s 20 (Renewal of authority to prospect) . . . . . . . 53 20 Area of authority to prospect reduced on grant of lease ................................ 53 16 Amendment of s 21 (Surrender of authority to prospect) . . . . . . . 53 17 Omission of s 22 and 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

 


 

2 Petroleum and Other Legislation Amendment Bill 2004 18 Amendment of s 24 (Qualification of permittees and lessees) . . . 54 19 Replacement of s 25 (Limit to number of permits and leases) . . . 55 Division 2 Work programs Subdivision 1 Requirements for proposed later work programs 25 Operation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 25A General requirements. . . . . . . . . . . . . . . . . . . . . . . . . 55 25B Program period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Subdivision 2 Approval of proposed later work programs 25C Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 57 25D Authority taken to have work program until decision on whether to approve proposed work program . . . . . 58 25E Deciding whether to approve proposed program . . . . 58 25F Steps after, and taking effect of, decision. . . . . . . . . . 59 Subdivision 3 Amending work programs 25G Restrictions on amending work program . . . . . . . . . . 59 25H Applying for approval to amend . . . . . . . . . . . . . . . . . 61 25I Requirements for making application . . . . . . . . . . . . . 61 25J Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 61 25K Steps after, and taking effect of, decision. . . . . . . . . . 63 Division 3 Renewals 25L Conditions for renewal application . . . . . . . . . . . . . . . 63 25M Requirements for making application . . . . . . . . . . . . . 64 25N Continuing effect of authority for renewal application 66 25O Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 66 25P Term and area of renewed authority. . . . . . . . . . . . . . 67 25Q Other provisions and taking effect of renewed authority .............................. 68 25R Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . 69 25S Information notice about refusal . . . . . . . . . . . . . . . . . 69 25T When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . 69 Division 4 Expiry of part 25U Expiry of pt 4 and ending of authorities to prospect . . 70 20 Omission of pt 5, other than s 35 . . . . . . . . . . . . . . . . . . . . . . . . . 70 21 Amendment of s 35 (Rights to water etc.) . . . . . . . . . . . . . . . . . . 70 22 Insertion of new pt 6, div 1, hdg . . . . . . . . . . . . . . . . . . . . . . . . . . 70

 


 

3 Petroleum and Other Legislation Amendment Bill 2004 23 Amendment of s 40 (Lease to holder of authority to prospect or permittee) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 24 Insertion of new ss 40A and 40B . . . . . . . . . . . . . . . . . . . . . . . . . 71 40A Continuing effect, for s 40 application, of authority to prospect and its work program . . . . . . . . . . . . . . . . . 71 40B Minister's power to decide excluded land for lease . . 72 25 Omission of ss 41­43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 26 Amendment of s 44 (Form etc. of lease) . . . . . . . . . . . . . . . . . . . 73 27 Amendment of s 45 (Entitlement to renewal of lease) . . . . . . . . . 73 28 Replacement of s 46 (Rent) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 46 Annual rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 29 Amendment of s 47 (Reservations, conditions and covenants of lease) .................................... 76 30 Omission of ss 49 and 50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 31 Amendment of s 51 (Use and occupation of mining area on private or improved land) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 32 Amendment of s 52 (Surrender and determination of lease) . . . . 76 33 Insertion of new s 52A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 52A Application of 2004 Act provisions about coextensive natural underground reservoirs . . . . . . . . . . . . . . . . . 77 34 Replacement of s 53 (Proceedings for forfeiture) . . . . . . . . . . . . . 78 Division 2 Development plans Subdivision 1 Requirements for proposed later development plans 53 Operation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 53A General requirements. . . . . . . . . . . . . . . . . . . . . . . . . 78 53B Plan period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Subdivision 2 Approval of proposed later development plans 53C Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 80 53D Lease taken to have development plan until decision on whether to approve proposed development plan. . 80 53E Deciding whether to approve proposed plan . . . . . . . 81 53F Power to require relinquishment . . . . . . . . . . . . . . . . . 82 53G Steps after, and taking effect of, decision. . . . . . . . . . 82 35 Omission of pt 7, hdg (Provisions applicable to permits and leases) ....................................... 83 36 Replacement of pt 7, div 1 (Signing applications) . . . . . . . . . . . . 83 37 Omission of pt 7, div 2, hdg (Royalties) . . . . . . . . . . . . . . . . . . . . 83 38 Omission of ss 55 and 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

 


 

4 Petroleum and Other Legislation Amendment Bill 2004 39 Omission of ss 58­60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 40 Omission of pt 7, div 3, hdg (Assignments and other dealings with permits and leases). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 41 Replacement of ss 61­64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 61 Obstruction of 1923 Act petroleum tenure holder. . . . 84 42 Amendment of s 65 (Reservations in favour of State) . . . . . . . . . 85 43 Omission of pt 7, div 4, hdg (Refinery and entry permissions and pipeline licences) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 44 Omission of ss 66­72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 45 Amendment of s 73 (Recovery of amounts payable to the State) 85 46 Replacement of ss 74­82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Part 6A Key mandatory conditions and related provisions Division 1 Preliminary 74 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Division 2 Specific mandatory conditions for authorities to prospect and related provisions Subdivision 1 Standard relinquishment condition and related provisions 74A Standard relinquishment condition . . . . . . . . . . . . . . . 86 74B Consequence of failure to comply with relinquishment condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 74C Part usually required to be relinquished . . . . . . . . . . . 88 74D Sub-blocks that can not be counted towards relinquishment ..................... 88 74E Adjustments for sub-blocks that can not be counted . 89 74F Relinquishment must be by blocks . . . . . . . . . . . . . . . 89 74G Ending of authority to prospect if all of area relinquished .......................... 90 Subdivision 2 Work programs 74H Requirement to have work program . . . . . . . . . . . . . . 90 74I Compliance with exploration activities in work program 91 74J Penalty relinquishment if work program not completed within extended period . . . . . . . . . . . . . . . . . . . . . . . . 91 74K Obligation to lodge proposed later work program. . . . 91 74L Consequence of failure to comply with notice to lodge proposed later work program . . . . . . . . . . . . . . . . . . . 93 Subdivision 3 Miscellaneous conditions 74M Restriction on flaring or venting . . . . . . . . . . . . . . . . . 93

 


 

5 Petroleum and Other Legislation Amendment Bill 2004 74N Petroleum royalty and annual rent . . . . . . . . . . . . . . . 94 Division 3 Specific mandatory conditions for leases and related provisions Subdivision 1 Development plans 74O Requirement to have development plan . . . . . . . . . . . 94 74P Compliance with development plan . . . . . . . . . . . . . . 94 74Q Obligation to lodge proposed later development plan 95 74R Consequence of failure to comply with notice to lodge proposed later development plan . . . . . . . . . . . . . . . . 97 Subdivision 2 Other mandatory conditions for leases 74S Restriction on flaring or venting . . . . . . . . . . . . . . . . . 97 74T Obligation to commence production . . . . . . . . . . . . . . 98 Division 4 Provisions for all 1923 Act petroleum tenures Subdivision 1 Preliminary 74U Application of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Subdivision 2 General mandatory conditions 74V Obligation to consult with particular owners and occupiers ............................ 99 74W Civil penalty for nonpayment of annual rent . . . . . . . . 99 74X Obligation to prevent spread of declared pests . . . . . 100 74Y Requirement to consider using formed roads . . . . . . 101 74Z Obligation to comply with Act and prescribed standards ............................. 101 75 Obligation to survey if Minister requires . . . . . . . . . . . 101 Division 5 Mandatory conditions and related provisions for when 1923 Act petroleum tenure ends or area reduced 75A Obligation to decommission pipelines . . . . . . . . . . . . 102 75B Obligation to remove equipment and improvements . 103 75C Authorisation to enter to facilitate compliance with s 74X or this division . . . . . . . . . . . . . . . . . . . . . . . . . 104 Part 6B Provisions relating to authorised activities 75D General restriction on carrying out authorised activities .............................. 105 75E Who may carry out authorised activity for holder . . . . 105 Part 6C Commercial viability assessment 75F Minister's power to require commercial viability report 106 75G Required content of commercial viability report . . . . . 107

 


 

6 Petroleum and Other Legislation Amendment Bill 2004 75H Minister's power to obtain independent viability assessment .......................... 107 75I Costs of independent viability assessment . . . . . . . . 108 Part 6D Wells, water supply bores and water observation bores Division 1 Restrictions on drilling 75J Requirements for drilling well . . . . . . . . . . . . . . . . . . . 109 75K Restriction on who may drill water observation bore or water supply bore ......................... 109 Division 2 Converting well to water supply bore 75L Restrictions on making conversion. . . . . . . . . . . . . . . 109 75M Notice of conversion . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Division 3 Transfers of wells, water observation bores and water supply bores Subdivision 1 General provisions 75N Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 75O Transfer only permitted under div 3 . . . . . . . . . . . . . . 111 75P Effect of transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Subdivision 2 Permitted transfers 75Q Transfer of water observation bore or water supply bore to landowner. . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 75R Transfer of well to holder of geothermal exploration permit or mining tenement . . . . . . . . . . . . . . . . . . . . . 112 75S Transfer of water observation bore to 1923 Act petroleum tenure holder . . . . . . . . . . . . . . . . . . . . . . . 113 Subdivision 3 Notice of transfer 75T Notice of transfer to Water Act regulator or Mineral Resources Act chief executive ........... 113 Division 4 Decommissioning of wells, water observation bores and water supply bores 75U Obligation to decommission . . . . . . . . . . . . . . . . . . . . 114 75V Right of entry to facilitate decommissioning . . . . . . . . 115 75W Responsibility for well or bore after decommissioning 116 Part 6E Reporting Division 1 General reporting provisions 75X Requirement to report outcome of testing . . . . . . . . . 117 75Y Notice about discovery and commercial viability . . . . 117 75Z Relinquishment report . . . . . . . . . . . . . . . . . . . . . . . . 118 76 End of tenure report . . . . . . . . . . . . . . . . . . . . . . . . . . 119

 


 

7 Petroleum and Other Legislation Amendment Bill 2004 Division 2 Records and samples 76A Requirement to keep records and samples . . . . . . . . 120 76B Requirement to lodge records and samples. . . . . . . . 121 Division 3 Releasing required information 76C Meaning of required information. . . . . . . . . . . . . . . . . 122 76D Public release of required information . . . . . . . . . . . . 122 76E Chief executive may use required information . . . . . . 123 76F Obligation to lodge annual reports . . . . . . . . . . . . . . . 123 76G Power to require information or reports about authorised activities to be kept or given . . . . . . . . . . . 124 Part 6F Provisions for coal seam gas Division 1 Preliminary Subdivision 1 Introduction 76H Main purposes of pt 6F. . . . . . . . . . . . . . . . . . . . . . . . 125 76I How main purposes are achieved . . . . . . . . . . . . . . . 126 76J Relationship with other provisions of Act . . . . . . . . . . 127 Subdivision 2 Definitions for pt 6F 76K What is coal seam gas and incidental coal seam gas 128 76L What is oil shale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 76M What is a coal exploration tenement and a coal mining lease ................................... 128 76N What is an oil shale exploration tenement and an oil shale mining lease . . . . . . . . . . . . . . . . . . . . . . . . . 129 76O What is a coal or oil shale mining tenement . . . . . . . . 129 Division 2 Additional provisions for authorities to prospect Subdivision 1 Grant of authority to prospect in area of coal or oil shale exploration tenement 76P Provisions for authority to prospect . . . . . . . . . . . . . . 130 Subdivision 2 Restriction on authorised activities on coal mining lease or oil shale mining lease land 76Q Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 130 76R Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Subdivision 3 Condition 76S Compliance with obligations under Mineral Resources Act .............................. 131 Division 3 Renewal provisions Subdivision 1 Lease area overlapping with coal or oil shale exploration tenement

 


 

8 Petroleum and Other Legislation Amendment Bill 2004 76T Application of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 132 76U Additional requirements for making application . . . . . 132 76V Content requirements for CSG statement . . . . . . . . . 133 76W Applicant's obligations . . . . . . . . . . . . . . . . . . . . . . . . 134 76X Minister may require further negotiation. . . . . . . . . . . 136 76Y Consequence of applicant not complying with obligations or requirement ................. 137 76Z Obligations of coal or oil shale exploration tenement holder ............................... 137 77 Submissions by coal or oil shale exploration tenement holder ................................ 137 Subdivision 2 Renewal application by petroleum lease holder 77A Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 139 77B Additional requirement for making application . . . . . . 139 77C Power to split application if it includes other land . . . . 139 77D Power to split application at applicant's request . . . . . 140 77E Notice to coal mining lease holder or oil shale mining lease holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 77F Coal mining lease holder's or oil shale mining lease holder's obligation to negotiate ............. 140 77G Additional requirements for grant . . . . . . . . . . . . . . . . 141 Subdivision 3 Renewal application by coal mining lease holder or oil shale mining lease holder 77H Application of sdiv 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 142 77I Additional requirement for making application . . . . . . 142 77J Power to split application if it includes other land . . . . 142 77K Power to split application at applicant's request . . . . . 143 77L Right to grant if particular requirements met . . . . . . . 143 77M Provisions of renewed lease. . . . . . . . . . . . . . . . . . . . 144 Division 4 Other additional provisions for leases Subdivision 1 Conditions 77N Compliance with obligation to negotiate with coal or oil shale mining lease applicant . . . . . . . . . . . . . . . . . 145 77O Requirement for giving of copy of relinquishment report ................................ 145 77P Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement ........................... 146 Subdivision 2 Amendment of relinquishment condition by application

 


 

9 Petroleum and Other Legislation Amendment Bill 2004 77Q Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 146 77R Conditions for applying to amend . . . . . . . . . . . . . . . . 146 77S Obligation of coal or oil shale exploration tenement holder to negotiate . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 77T Requirements for making application . . . . . . . . . . . . . 147 77U Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . 148 77V Submissions by coal or oil shale exploration tenement holder .............................. 148 77W Minister may require further negotiation. . . . . . . . . . . 149 77X Deciding amendment application . . . . . . . . . . . . . . . . 150 Subdivision 3 Restriction on amendment of conditions 77Y Interests of relevant coal or oil shale mining tenement holder to be considered . . . . . . . . . . . . . . . 150 Division 5 Restrictions on particular transfers 77Z Requirement for coordination arrangement to transfer lease in tenure area of mining lease . . . . . . . . . . . . . 151 Division 6 Proposed later development plans 78 Additional criteria for deciding whether to approve. . . 151 Division 7 Confidentiality of information 78A Application of div 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 78B Confidentiality obligations. . . . . . . . . . . . . . . . . . . . . . 152 78C Civil remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Part 6G Security 78D Operation and purpose of pt 6G. . . . . . . . . . . . . . . . . 153 78E Power to require security for 1923 Act petroleum tenure ................................ 154 78F Minister's power to require additional security . . . . . . 154 78G Interest on security . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 78H Power to use security . . . . . . . . . . . . . . . . . . . . . . . . . 156 78I Replenishment of security . . . . . . . . . . . . . . . . . . . . . 156 78J Security not affected by change in holder . . . . . . . . . 156 78K Retention of security after 1923 Act petroleum tenure ends .............................. 157 Part 6H Private land Division 1 Preliminary 78L Application of pt 6H . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Division 2 Requirement for entry notice for entry to private land in area of 1923 Act petroleum tenure

 


 

10 Petroleum and Other Legislation Amendment Bill 2004 78M Requirement for entry notice to carry out authorised activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 78N Waiver of entry notice. . . . . . . . . . . . . . . . . . . . . . . . . 158 78O Required contents of entry notice. . . . . . . . . . . . . . . . 159 78P Giving entry notice by publication. . . . . . . . . . . . . . . . 160 Division 3 Requirement for further notice before carrying out authorised activities on private land 78Q Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 160 78R Requirement to give further notice . . . . . . . . . . . . . . . 161 78S Failure to give further notice . . . . . . . . . . . . . . . . . . . . 161 Division 4 Provisions for dealings or change in ownership or occupancy 78T Entry notice or waiver of entry notice not affected by permitted dealing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 78U Change in ownership or occupancy . . . . . . . . . . . . . . 162 Division 5 Periodic notice after entry of land 78V Notice to owners and occupiers . . . . . . . . . . . . . . . . . 163 Division 6 Access to carry out rehabilitation or environmental management 78W Right of access for authorised activities includes access for rehabilitation and environmental management ..................... 164 Part 6I Public land Division 1 Public roads Subdivision 1 Preliminary 78X Significant projects excluded from div 1 . . . . . . . . . . . 164 78Y What is a notifiable road use . . . . . . . . . . . . . . . . . . . 165 Subdivision 2 Notifiable road uses 78Z Notice of notifiable road use . . . . . . . . . . . . . . . . . . . . 165 79 Directions about notifiable road use . . . . . . . . . . . . . . 166 79A Obligation to comply with road use directions . . . . . . 167 Subdivision 3 Compensation for notifiable road uses 79B Liability to compensate public road authority . . . . . . . 167 79C Compensation agreement . . . . . . . . . . . . . . . . . . . . . 168 79D Deciding compensation through tribunal . . . . . . . . . . 169 79E Criteria for decision . . . . . . . . . . . . . . . . . . . . . . . . . . 169 79F Tribunal review of compensation . . . . . . . . . . . . . . . . 170 79G Compensation to be addressed before carrying out notifiable road use . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

 


 

11 Petroleum and Other Legislation Amendment Bill 2004 79H Compensation not affected by change in administration or holder . . . . . . . . . . . . . . . . . . . . . . . 172 Division 2 Other public land 79I Requirement for entry notice to carry out authorised activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 79J Waiver of entry notice. . . . . . . . . . . . . . . . . . . . . . . . . 173 79K Required contents of entry notice. . . . . . . . . . . . . . . . 173 79L Conditions public land authority may impose . . . . . . . 174 Part 6J Access to land in area of another 1923 Act petroleum tenure or a mining tenement 79M Application of pt 6J . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 79N Access to land in area of lease under this Act or a mining lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 79O Access to land in area of another type of mining tenement or 1923 Act petroleum tenure ........ 176 Part 6K General compensation provisions 79P General liability to compensate . . . . . . . . . . . . . . . . . 177 79Q Compensation agreement . . . . . . . . . . . . . . . . . . . . . 178 79R Deciding compensation through tribunal . . . . . . . . . . 179 79S Tribunal review of compensation . . . . . . . . . . . . . . . . 180 79T Orders tribunal may make . . . . . . . . . . . . . . . . . . . . . 180 79U Compensation to be addressed before entry to private land ............................... 180 79V Compensation not affected by change in ownership or occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 Part 6L Ownership of pipelines, equipment and improvements Division 1 Pipelines 79W Application of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 79X General provision about ownership while tenure is in force for pipeline ....................... 182 79Y Ownership afterwards. . . . . . . . . . . . . . . . . . . . . . . . . 183 Division 2 Equipment and improvements 79Z Application of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 184 80 Ownership of equipment and improvements . . . . . . . 185 Part 6M Petroleum register 80A Petroleum register . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 80B Keeping of register . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 80C Access to register . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186

 


 

12 Petroleum and Other Legislation Amendment Bill 2004 80D Chief executive may correct register . . . . . . . . . . . . . 187 Part 6N Dealings Division 1 Permitted dealings 80E What is a permitted dealing . . . . . . . . . . . . . . . . . . . . 188 80F Dealings other than permitted dealings of no effect . . 189 80G Conditions for permitted dealings . . . . . . . . . . . . . . . . 189 Division 2 Obtaining approval for permitted dealing 80H Minister may give indication for proposed permitted dealing ............................. 189 80I Applying for approval . . . . . . . . . . . . . . . . . . . . . . . . . 190 80J Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 190 80K Criteria for decision . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Part 6O Enforcement of end of tenure and area reduction obligations 80L Power of authorised person to ensure compliance . . 193 80M Requirements for entry to ensure compliance . . . . . . 194 80N Duty to avoid damage in exercising remedial powers. 194 80O Notice of damage because of exercise of remedial powers ............................ 195 80P Compensation for exercise of remedial powers . . . . . 195 80Q Ownership of thing removed in exercise of remedial powers ........................... 195 80R Recovery of costs of and compensation for exercise of remedial power . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 Part 6P Noncompliance procedure Division 1 Introduction 80S Operation of pt 6P . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Division 2 Noncompliance action 80T Types of noncompliance action that may be taken . . . 197 80U When noncompliance action may be taken . . . . . . . . 199 Division 3 Procedure for noncompliance action 80V Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 80W Notice of proposed noncompliance action . . . . . . . . . 200 80X Considering submissions . . . . . . . . . . . . . . . . . . . . . . 201 80Y Decision on proposed noncompliance action. . . . . . . 201 80Z Notice and taking effect of decision . . . . . . . . . . . . . . 202 81 Consequence of failure to comply with relinquishment requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202

 


 

13 Petroleum and Other Legislation Amendment Bill 2004 Part 6Q Other common provisions for 1923 Act petroleum tenures'. 47 Amendment of s 83 (Restrictions on location of drills) . . . . . . . . . 203 48 Amendment of s 84 (Prevention of waste etc.). . . . . . . . . . . . . . . 203 49 Amendment of s 85 (Casting well) . . . . . . . . . . . . . . . . . . . . . . . . 204 50 Amendment of s 86 (Water rights) . . . . . . . . . . . . . . . . . . . . . . . . 204 51 Omission of s 87 (Abandonment of well) . . . . . . . . . . . . . . . . . . . 205 52 Amendment of s 88 (Conduct of operations on land) . . . . . . . . . . 205 53 Amendment of s 89 (Compliance with Act etc.) . . . . . . . . . . . . . . 206 54 Amendment of s 90 (Regulations may prescribe further provisions) ................................... 206 55 Omission of s 91 (Minister's powers concerning petroleum) . . . . 206 56 Amendment of s 92 (Delivery of premises in case of forfeiture) . . 206 57 Amendment of s 93 (Right to mine for other minerals). . . . . . . . . 207 58 Amendment of s 95 (Limits on use of water from natural source) 207 59 Amendment of s 96 (Who bound by terms of permits and leases etc.) .................................. 207 60 Omission of ss 97­99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 61 Replacement of ss 101 and 102. . . . . . . . . . . . . . . . . . . . . . . . . . 208 101 Minister's power to ensure compliance by 1923 Act petroleum tenure holder . . . . . . . . . . . . . . . . . . . . . . . 208 102 Interest on amounts owing to the State under this Act 209 103 Recovery of unpaid amounts . . . . . . . . . . . . . . . . . . . 210 Part 7 Appeals 104 Who may appeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 105 Period to appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 106 Starting appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 107 Stay of operation of decision . . . . . . . . . . . . . . . . . . . 211 108 Hearing procedures . . . . . . . . . . . . . . . . . . . . . . . . . . 211 109 Tribunal's powers on appeal . . . . . . . . . . . . . . . . . . . . 212 Part 8 Evidence and legal proceedings Division 1 Evidentiary provisions 110 Application of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 111 Appointments and authority . . . . . . . . . . . . . . . . . . . . 212 112 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 113 Other evidentiary aids . . . . . . . . . . . . . . . . . . . . . . . . 213 Division 2 Offence proceedings

 


 

14 Petroleum and Other Legislation Amendment Bill 2004 114 Offences under Act are summary. . . . . . . . . . . . . . . . 214 115 Statement of complainant's knowledge . . . . . . . . . . . 214 116 Allegations of false or misleading matters . . . . . . . . . 214 117 Conduct of representatives. . . . . . . . . . . . . . . . . . . . . 215 118 Additional orders that may be made on conviction. . . 216 62 Insertion of new pt 9, divs 1­3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 Division 1 Applications 119 Application of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 120 Substantial compliance with application requirements may be accepted . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217 121 Additional information may be required about application .............................. 217 122 Amending applications . . . . . . . . . . . . . . . . . . . . . . . . 218 123 Withdrawal of application . . . . . . . . . . . . . . . . . . . . . . 218 124 Minister's power to refund application fee . . . . . . . . . 219 Division 2 Miscellaneous provisions for 1923 Act petroleum tenures 125 Power to correct or amend . . . . . . . . . . . . . . . . . . . . . 219 126 Replacement of instrument for tenure . . . . . . . . . . . . 220 127 Joint and several liability for conditions and for debts to State ................................ 220 128 Notice of agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Division 3 Other miscellaneous provisions 129 Name and address for service . . . . . . . . . . . . . . . . . . 221 130 Additional information about reports and other matters 221 131 References to right to enter . . . . . . . . . . . . . . . . . . . . 222 132 Application of provisions. . . . . . . . . . . . . . . . . . . . . . . 222 133 Protection from liability for particular persons . . . . . . 222 134 Delegation by Minister or chief executive . . . . . . . . . . 223 135 Approved forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 63 Amendment of s 144 (Interference with pipeline etc.) . . . . . . . . . 223 64 Omission of s 144A­146 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 65 Amendment of s 148 (Other rights of action not affected) . . . . . . 224 66 Replacement of s 149 (Regulation-making power) . . . . . . . . . . . 224 149 Regulation-making power. . . . . . . . . . . . . . . . . . . . . . 224 67 Amendment of s 150 (Declaration about certain permits, leases and licences) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225 68 Insertion of new pt 10 and schedule. . . . . . . . . . . . . . . . . . . . . . . 225

 


 

15 Petroleum and Other Legislation Amendment Bill 2004 Part 10 Transitional provisions for 1923 Act petroleum tenures from 2004 Act start day Division 1 General transitional provisions Subdivision 1 Particular unfinished applications 151 Unfinished authority to prospect applications for which a Commonwealth Native Title Act s 29 notice has been given ........................ 226 152 Additional condition of authority to prospect granted under s 151 ............................ 227 153 Lapsing of unfinished former s 42 applications . . . . . 227 Subdivision 2 Authorities to prospect 154 Area of land in area of coal mining lease or oil shale mining lease becomes excluded land . . . . . . . . 228 155 Conditions of an authority to prospect about expenditure or work becomes its work program. . . . . 228 Subdivision 3 Leases 156 Program for development and production for a lease becomes its development plan . . . . . . . . . . . . . . . . . . 228 Subdivision 4 Conflict between 1923 Act petroleum tenure conditions and relevant environmental conditions 157 Environmental conditions prevail . . . . . . . . . . . . . . . . 229 Subdivision 5 Securities 158 Provision for existing demands for additional or alternative security under former s 43(8) . . . . . . . . . . 230 159 Monetary securities . . . . . . . . . . . . . . . . . . . . . . . . . . 230 160 Non-monetary securities . . . . . . . . . . . . . . . . . . . . . . 231 Subdivision 6 Notices of entry under Petroleum Regulation 1966 relating to 1923 Act petroleum tenure 161 Conversion to entry notice . . . . . . . . . . . . . . . . . . . . . 232 Subdivision 7 Compensation 162 Accrued compensation rights relating to 1923 Act petroleum tenure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 163 Existing compensation agreements relating to 1923 Act petroleum tenure . . . . . . . . . . . . . . . . . . . . . . . . . 233 Subdivision 8 Continuation of former cancellation provision in particular circumstances 164 Continued application of former s 22 for previous acts or omissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Subdivision 9 Existing road uses

 


 

16 Petroleum and Other Legislation Amendment Bill 2004 165 Exclusion of pt 6I, div 1 for continuance of particular existing road uses ......................... 234 Subdivision 10 Miscellaneous provisions 166 Provision for cancellation of particular conditions of lease 191 ........................... 235 167 Application of s 3 to particular existing mining tenements ........................... 235 168 Deferral of s 52A for existing leases . . . . . . . . . . . . . . 236 169 Deferral of s 79I for particular 1923 Act petroleum tenure holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 Division 2 Relinquishment condition until first renewal after 2004 Act start day, and related provisions 170 Application of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 171 What is the current term of an authority to prospect . 237 172 What are the transitional notional sub-blocks of an authority to prospect. . . . . . . . . . . . . . . . . . . . . . . . . . 237 173 Relinquishment condition if authority includes a reduction requirement . . . . . . . . . . . . . . . . . . . . . . . . 238 174 Relinquishment condition if authority does not include a reduction requirement . . . . . . . . . . . . . . . . . . . . . . . 238 Division 3 Leases overlapping with an existing or proposed mineral development licence Subdivision 1 Preliminary 175 Definitions for div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 176 Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Subdivision 2 Additional provisions 177 Obligation of lessee to give access to MDL holder. . . 240 178 Additional requirements for later development plans for lease ................................ 241 179 Minister may require further negotiation. . . . . . . . . . . 242 Subdivision 3 Confidentiality of information 180 Application of sdiv 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 243 181 Confidentiality obligations. . . . . . . . . . . . . . . . . . . . . . 243 182 Civil remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 Part 3 Amendment of Petroleum and Gas (Production and Safety) Act 2004 69 Act amended in pt 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 70 Insertion of new s 6A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 6A Relationship with Nature Conservation Act 1992 . . . . 246 71 Amendment of s 11 (Meaning of LPG and fuel gas) . . . . . . . . . . 246

 


 

17 Petroleum and Other Legislation Amendment Bill 2004 72 Amendment of s 16 (What is a pipeline) . . . . . . . . . . . . . . . . . . . 246 73 Amendment of s 20 (What are the conditions of a petroleum authority) ..................................... 246 74 Amendment of s 28 (Property in petroleum produced) . . . . . . . . 247 75 Amendment of s 48 (General requirements) . . . . . . . . . . . . . . . . 247 76 Amendment of s 52 (Program period) . . . . . . . . . . . . . . . . . . . . . 247 77 Replacement of s 59 (Restrictions on amending work program) . 247 59 Restrictions on amending work program . . . . . . . . . . 248 78 Amendment of s 62 (Deciding application). . . . . . . . . . . . . . . . . . 249 79 Replacement of ch 2, pt 1, div 4, sdiv 2, hdg (Relinquishment condition and related provisions) . . . . . . . . . . . . . . . . . . . . . . . . . 250 80 Amendment of s 65 (Relinquishment condition). . . . . . . . . . . . . . 250 81 Insertion of new s 65A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 65A Consequence of failure to comply with relinquishment condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 82 Amendment of s 66 (Part usually required to be relinquished) . . 251 83 Amendment of s 67 (Sub-blocks that can not be counted towards relinquishment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 84 Amendment of s 68 (Adjustments for sub-blocks that can not be counted) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 85 Amendment of s 69 (Adjustment for particular potential commercial areas) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 86 Amendment of s 70 (Relinquishment must be by blocks). . . . . . . 252 87 Amendment of s 73 (Permitted period for production or storage testing) ...................................... 252 88 Amendment of s 77 (Requirement to have work program). . . . . . 252 89 Insertion of new s 78A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253 78A Penalty relinquishment if work program not completed within extended period . . . . . . . . . . . . . . . . . . . . . . . . 253 90 Amendment of s 79 (Obligation to lodge proposed later work program) .................................... 253 91 Amendment of s 82 (Requirements for making application). . . . . 254 92 Amendment of s 93 (Extension of term of declaration) . . . . . . . . 254 93 Amendment of s 98 (Area of authority to prospect) . . . . . . . . . . . 254 94 Amendment of s 99 (Minister's power to decide excluded land) . 254 95 Amendment of s 110 (Petroleum pipeline and water pipeline construction and operation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 96 Amendment of s 113 (Application of sdiv 2). . . . . . . . . . . . . . . . . 255 97 Amendment of s 115 (Restriction on petroleum production from reservoir) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256

 


 

18 Petroleum and Other Legislation Amendment Bill 2004 98 Amendment of s 116 (Dispute resolution by tribunal). . . . . . . . . . 257 99 Replacement of s 119 (Continuing effect of authority to prospect for ATP-related application) . . . . . . . . . . . . . . . . . . . . . . 257 119 Continuing effect of authority to prospect for ATP-related application . . . . . . . . . . . . . . . . . . . . . . . 257 100 Amendment of s 121 (Requirements for grant) . . . . . . . . . . . . . . 258 101 Amendment of s 151 (Restriction on flaring or venting) . . . . . . . . 258 102 Amendment of s 152 (Permitted period for production or storage testing) ...................................... 258 103 Amendment of s 157 (Requirement to have development plan) . 259 104 Amendment of s 159 (Obligation to lodge proposed later development plan) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 105 Amendment of s 162 (Requirements for making renewal application) .................................. 260 106 Amendment of s 169 (Minister's power to decide excluded land) 260 107 Amendment of s 173 (Deciding application). . . . . . . . . . . . . . . . . 261 108 Amendment of s 178 (Deciding application for data acquisition authority) .................................... 261 109 Insertion of new s 184A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 184A Annual rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 110 Amendment of s 187 (Water monitoring activities). . . . . . . . . . . . 262 111 Amendment of s 190 (Who may apply for water monitoring authority) .................................... 262 112 Amendment of s 192 (Deciding application for water monitoring authority) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 113 Replacement of s 201 (Provision for who is the authority holder if only 1 related petroleum tenure). . . . . . . . . . . . . . . . . . . 263 201 Provision for who is the authority holder. . . . . . . . . . . 263 114 Insertion of new s 202A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 202A Annual rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 115 Amendment of s 228 (Prohibition on actions preventing access). 264 116 Amendment of s 234 (Arrangement to coordinate petroleum activities) .................................... 264 117 Amendment of s 235 (Applying for Ministerial approval of proposed coordination arrangement) . . . . . . . . . . . . . . . . . . . . . . 264 118 Amendment of s 240 (Grant of pipeline licence) . . . . . . . . . . . . . 265 119 Amendment of s 250 (The make good obligation) . . . . . . . . . . . . 265 120 Amendment of s 266 (Obligation to lodge monitoring reports). . . 265 121 Replacement of s 281 (Standard for drilling petroleum well) . . . . 265 281 Requirements for drilling petroleum well . . . . . . . . . . 265

 


 

19 Petroleum and Other Legislation Amendment Bill 2004 122 Amendment of s 292 (Obligation to decommission). . . . . . . . . . . 266 123 Amendment of s 295 (Main purposes of ch 3) . . . . . . . . . . . . . . . 266 124 Amendment of s 297 (Relationship with chs 2, 5 and 15) . . . . . . 267 125 Amendment of s 298 (Description of petroleum leases for ch 3) . 267 126 Amendment of s 305 (Additional requirements for making application) ................................... 267 127 Amendment of s 313 (Obligations of coal or oil shale exploration tenement holder) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 128 Amendment of s 318 (When preference decision is required) . . . 268 129 Amendment of s 321 (Restrictions on giving preference). . . . . . . 268 130 Amendment of s 328 (Additional criteria for deciding provisions of petroleum lease). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 131 Amendment of s 341 (Provisions of petroleum lease) . . . . . . . . . 269 132 Amendment of s 350 (Additional requirements for grant). . . . . . . 269 133 Amendment of s 356 (Right to grant if particular requirements met) ......................................... 269 134 Amendment of s 360 (Restriction) . . . . . . . . . . . . . . . . . . . . . . . . 269 135 Replacement of ch 3, pt 4, div 3 (Exception to automatic area reduction of authority to prospect on grant of petroleum lease) . . 269 Division 3 Exceptions to particular area provisions 361 Exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270 136 Amendment of s 364 (Restriction on authorised activities on overlapping ATP land) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270 137 Amendment of s 367 (Requirement for giving copy of relinquishment report) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 138 Amendment of s 376 (Deciding amendment application). . . . . . . 271 139 Replacement of ch 3, pt 6, div 1, hdg. . . . . . . . . . . . . . . . . . . . . . 271 140 Amendment of s 380 (Operation of div 1) . . . . . . . . . . . . . . . . . . 271 141 Amendment of s 381 (Statement about interests of coal or oil shale exploration tenement holder) . . . . . . . . . . . . . . . . . . . 272 142 Amendment of s 382 (Requirement to optimise petroleum production) ................................... 272 143 Insertion of new ch 3, pt 6, div 1, sdiv 2 . . . . . . . . . . . . . . . . . . . . 272 Subdivision 2 Other additional provisions 383A Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 272 383B Additional criteria for approval . . . . . . . . . . . . . . . . . . 273 383C Restriction on approval. . . . . . . . . . . . . . . . . . . . . . . . 273 144 Replacement of ch 3, pt 6, div 2, hdg. . . . . . . . . . . . . . . . . . . . . . 273 Division 2 Later development plans

 


 

20 Petroleum and Other Legislation Amendment Bill 2004 Subdivision 1 Additional requirements for proposed later development plans 383D Additional requirements under div 1, sdiv 1 apply . . . 273 145 Replacement of s 386 (Consultation with particular coal mining tenement or oil shale mining tenement holders required before making plan) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274 386 Requirements for consultation with particular coal or oil shale mining tenement holders . . . . . . . . . . . . . . . 274 146 Amendment of s 388 (Additional content requirements) . . . . . . . 275 147 Amendment of s 389 (Exemption from additional content requirements) ................................. 276 148 Amendment of s 391 (Confidentiality obligations) . . . . . . . . . . . . 277 149 Amendment of s 396 (Deciding application). . . . . . . . . . . . . . . . . 277 150 Amendment of s 399 (What is pipeline land for a pipeline licence) 277 151 Amendment of s 401 (Construction and operation of pipeline) . . 278 152 Amendment of s 408 (Notice of proposed application to relevant local government) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278 153 Amendment of s 409 (Requirements for making application). . . . 278 154 Amendment of s 411 (Public notice requirement) . . . . . . . . . . . . 279 155 Amendment of s 441 (Construction and operation of petroleum facility) ...................................... 279 156 Amendment of s 443 (Who may apply) . . . . . . . . . . . . . . . . . . . . 279 157 Amendment of s 445 (Requirements for making application). . . . 279 158 Amendment of s 447 (Provisions of licence) . . . . . . . . . . . . . . . . 280 159 Amendment of s 448 (Criteria for decisions) . . . . . . . . . . . . . . . . 280 160 Insertion of new s 448A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 448A Provision for facility already the subject of a pipeline licence ............................. 280 161 Amendment of s 456 (State's power to take land) . . . . . . . . . . . . 281 162 Insertion of new s 478A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 478A Survey licence can not be renewed . . . . . . . . . . . . . . 281 163 Amendment of s 479 (Conditions for renewal application) . . . . . . 281 164 Amendment of s 480 (Requirements for making application). . . . 281 165 Amendment of s 487 (Operation and purpose of pt 1) . . . . . . . . . 282 166 Amendment of s 488 (Power to require security for petroleum authority) ................................... 282 167 Amendment of s 489 (Minister's power to require additional security) ................................... 282 168 Amendment of s 493 (Security not affected by change in authority holder) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283

 


 

21 Petroleum and Other Legislation Amendment Bill 2004 169 Amendment of s 497 (Requirement for entry notice to carry out authorised activities). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 170 Insertion of new ch 5, pt 2, div 2A . . . . . . . . . . . . . . . . . . . . . . . . 284 Division 2A Requirement for further notice before carrying out authorised activities on private land 500A Application of div 2A . . . . . . . . . . . . . . . . . . . . . . . . . . 284 500B Requirement to give further notice . . . . . . . . . . . . . . . 284 500C Failure to give further notice . . . . . . . . . . . . . . . . . . . . 285 171 Amendment of s 511 (Entry notice or waiver of entry notice or access agreement not affected by dealing) . . . . . . . . . . . . . . . 285 172 Amendment of s 512 (Change in ownership or occupancy). . . . . 285 173 Insertion of new ch 5, pt 2, div 6. . . . . . . . . . . . . . . . . . . . . . . . . . 286 Division 6 Access to carry out rehabilitation and environmental management 513A Right of access for authorised activities includes access for rehabilitation and environmental management ............................ 286 174 Amendment of s 526 (Public land authority approval required for particular activities). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 526 Requirement for entry notice to carry out authorised activities'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 175 Insertion of new ss 526A and 526B . . . . . . . . . . . . . . . . . . . . . . . 287 526A Waiver of entry notice. . . . . . . . . . . . . . . . . . . . . . . . . 287 526B Required contents of entry notice. . . . . . . . . . . . . . . . 288 176 Amendment of s 527 (Conditions of public land authority approval) 288 177 Amendment of s 531 (General liability to compensate) . . . . . . . . 289 178 Amendment of s 532 (Compensation agreement) . . . . . . . . . . . . 290 179 Amendment of s 533 (Deciding compensation through tribunal) . 290 180 Amendment of s 536 (Compensation to be addressed before entry to private land). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 181 Amendment of s 539 (General provision about ownership while tenure or licence is in force for pipeline) . . . . . . . . . . . . . . . 291 182 Amendment of s 544 (Notice by petroleum tenure holder about discovery and commercial viability) . . . . . . . . . . . . . . . . . . . . . . . 291 183 Amendment of s 546 (End of tenure report). . . . . . . . . . . . . . . . . 292 184 Amendment of s 548 (Requirement to lodge records and samples) .................................... 293 185 Amendment of s 550 (Public release of required information) . . . 293 186 Amendment of s 551 (Chief executive may use required information) ................................. 293

 


 

22 Petroleum and Other Legislation Amendment Bill 2004 187 Amendment of s 553 (Power to require information or reports about authorised activities to be kept or given) . . . . . . . . . . . . . . 294 188 Amendment of s 559 (Obligation to decommission pipelines) . . . 294 189 Amendment of s 560 (Obligation to remove equipment and improvements) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 190 Amendment of s 569 (Prohibited dealings) . . . . . . . . . . . . . . . . . 294 191 Amendment of s 571 (Minister may give indication for proposed permitted dealing). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 192 Amendment of s 573 (Deciding application). . . . . . . . . . . . . . . . . 295 193 Insertion of new s 574A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296 574A Authority to prospect can not be surrendered . . . . . . 296 194 Amendment of s 575 (Requirements for surrenders) . . . . . . . . . . 296 195 Amendment of s 577 (Notice of application required for particular pipeline licences) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 196 Amendment of s 586 (Recovery of costs of and compensation for exercise of remedial power) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 197 Amendment of s 590 (Imposition of petroleum royalty on petroleum producers) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 198 Amendment of s 591 (Exemptions from petroleum royalty) . . . . . 297 199 Insertion of new s 591A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 591A Exemption for production testing . . . . . . . . . . . . . . . . 298 200 Amendment of s 592 (Minister may decide measurement if not made or royalty information not given) . . . . . . . . . . . . . . . . . . 299 201 Amendment of s 597 (Petroleum producer's obligations if use of estimates approved) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 202 Amendment of s 599 (Annual royalty returns) . . . . . . . . . . . . . . . 300 203 Amendment of s 605 (Appointment and qualifications) . . . . . . . . 300 204 Amendment of s 612 (Return of identity card) . . . . . . . . . . . . . . . 300 205 Amendment of s 648 (Restrictions on use of meter) . . . . . . . . . . 301 206 Amendment of s 675 (Content requirements for safety management plans) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 207 Amendment of s 687 (Who is the executive safety manager of an operating plant) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 208 Amendment of s 688 (Executive safety manager's general obligations) ................................... 302 209 Amendment of s 690 (Content requirements for safety reports) . 302 210 Amendment of s 691 (Obligation to give information to coal or oil shale exploration tenement holder) . . . . . . . . . . . . . . . . . . . 303 211 Amendment of s 699 (General obligation to keep risk to an acceptable level) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303

 


 

23 Petroleum and Other Legislation Amendment Bill 2004 212 Insertion of new s 699A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 699A Operator's obligation for adjacent or overlapping coal mining operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 213 Replacement of ch 9, pt 4, div 5 (Hazard reporting for operating plant on coal or oil shale mining lease) . . . . . . . . . . . . 304 Division 5 Additional obligations of operator of operating plant on coal or oil shale mining lease Subdivision 1 Principal hazard management plans 705 Application of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 304 705A Requirement to have principal hazard management plan .................................. 304 705B Content requirements for principal hazard management plan ........................ 305 705C Resolving disputes about provision proposed by mining lease holder . . . . . . . . . . . . . . . . . . . . . . . . . . 306 Subdivision 2 Additional reporting requirement 705D Reporting of particular accidents and prescribed high potential incidents. . . . . . . . . . . . . . . . . . . . . . . . 307 214 Amendment of s 724 (Types of gas device) . . . . . . . . . . . . . . . . . 308 215 Replacement of s 728 (Chief inspector's power to issue). . . . . . . 308 728 Who may apply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308 728A Requirements for application . . . . . . . . . . . . . . . . . . . 309 728B Interim licence or authorisation . . . . . . . . . . . . . . . . . 309 728C Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 310 728D Term of gas work licence or authorisation . . . . . . . . . 311 216 Insertion of new ss 732A and 732B . . . . . . . . . . . . . . . . . . . . . . . 311 732A Defences for certain offences. . . . . . . . . . . . . . . . . . . 311 732B Technical advisory committees. . . . . . . . . . . . . . . . . . 312 217 Amendment of s 733 (Certification of gas device or gas fitting) . . 313 218 Amendment of s 742 (Return of identity card) . . . . . . . . . . . . . . . 313 219 Replacement of s 745 (Inspector's additional entry power for operating plant) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313 745 Inspector's additional entry power for operating plant 313 220 Amendment of s 756 (Failure to comply with help requirement) . 314 221 Amendment of s 759 (Failure to produce document) . . . . . . . . . . 314 222 Amendment of s 760 (Failure to certify copy of document) . . . . . 314 223 Amendment of s 762 (Failure to comply with information requirement) .................................. 314 224 Amendment of s 766 (Failure to comply with seizure direction) . . 314

 


 

24 Petroleum and Other Legislation Amendment Bill 2004 225 Amendment of s 768 (Offence to unlawfully interfere with seized thing) ........................................ 314 226 Amendment of s 782 (Failure to comply with compliance direction) 315 227 Amendment of s 785 (Failure to comply with dangerous situation direction). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 228 Amendment of s 790 (Types of noncompliance action that may be taken). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 229 Amendment of s 791 (When noncompliance action may be taken) 316 230 Amendment of s 798 (Decision on proposed noncompliance action) ...................................... 316 231 Insertion of new s 799A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 799A Consequence of failure to comply with relinquishment requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 232 Amendment of s 800 (Restriction on petroleum tenure activities) 317 233 Amendment of s 804 (Duty to avoid interference in carrying out authorised activities). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 234 Amendment of s 805 (Obstruction of petroleum authority holder) 317 235 Amendment of s 807 (Restriction on building on pipeline land) . . 317 236 Amendment of s 808 (Restriction on changing surface of pipeline land) ................................ 318 237 Amendment of s 809 (Unlawful taking of petroleum or fuel gas prohibited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 238 Amendment of s 810 (Restriction on building on petroleum facility land) ........................................ 318 239 Amendment of s 811 (Obstruction of inspector or authorised officer) ....................................... 318 240 Amendment of s 812 (Pretending to be inspector or authorised officer) ....................................... 318 241 Amendment of s 813 (False or misleading information) . . . . . . . . 319 242 Amendment of s 843 (Additional information may be required about application) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 243 Amendment of s 853 (Additional information about reports and other matters) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 244 Amendment of s 858 (Approved forms) . . . . . . . . . . . . . . . . . . . . 319 245 Amendment of s 865 (Licences under repealed regulation that become an authorisation) . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 246 Renumbering of ch 15, pt 3, heading (Transitional provisions for Petroleum and Gas (Production and Safety) Act 2004. . . . . . . . . 320 247 Insertion of new ch 15, pt 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 Part 3 Transitional provisions relating to 1923 Act Division 1 Preliminary

 


 

25 Petroleum and Other Legislation Amendment Bill 2004 872 Definitions for pt 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 873 What is the current term of a converted ATP . . . . . . . 321 874 What are the transitional notional sub-blocks for a converted ATP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 Division 2 Conversion of particular 1923 Act ATPs to an authority to prospect under this Act Subdivision 1 Conversion provisions 875 Application of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 876 Conversion on 2004 Act start day . . . . . . . . . . . . . . . 323 Subdivision 2 Special provisions for converted ATPs 877 Exclusion from area of land in area of coal mining lease or oil shale mining lease . . . . . . . . . . . . . . . . . . 324 878 Relinquishment condition if converted ATP includes a reduction requirement . . . . . . . . . . . . . . . . . . . . . . . . 324 879 Relinquishment condition if authority does not include a reduction requirement . . . . . . . . . . . . . . . . . . . . . . . 325 880 Provision for conflicting conditions . . . . . . . . . . . . . . . 325 881 Additional conditions for renewal application . . . . . . . 326 882 Term of renewed converted ATP . . . . . . . . . . . . . . . . 326 883 Exclusion of s 98(7) for any renewal. . . . . . . . . . . . . . 326 884 Existing renewal applications . . . . . . . . . . . . . . . . . . . 326 885 Continued application of 1923 Act, former s 22 to converted ATP for previous acts or omissions . . . . . . 327 Division 3 Unfinished applications for 1923 Act ATPs (other than applications for which a Commonwealth Native Title Act s 29 notice has been given) 886 Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 327 887 Applications for which notice of intention to grant has been given . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328 888 Applications in response to public notice . . . . . . . . . . 328 889 Other applications made before introduction of Petroleum and Other Legislation Amendment Bill 2004 329 890 Lapsing of all other applications . . . . . . . . . . . . . . . . . 329 Division 4 Transition, by application, from 1923 Act ATP to petroleum lease under this Act 891 Right of 1923 Act ATP holder to apply for petroleum lease ............................. 330 892 Provisions for deciding application and grant of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330

 


 

26 Petroleum and Other Legislation Amendment Bill 2004 Division 5 Conversion of particular 1923 Act leases to petroleum leases Subdivision 1 Conversion provisions 893 Application of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 331 894 Conversion on 2004 Act start day . . . . . . . . . . . . . . . 331 Subdivision 2 Special provisions for converted leases 895 Provision for conflicting conditions . . . . . . . . . . . . . . . 332 896 Sunsetting of particular activities . . . . . . . . . . . . . . . . 332 897 Additional obligation of converted lease holder to lodge proposed later development plan . . . . . . . . . . . 333 898 Consequence of failure to comply with notice to lodge proposed later development plan . . . . . . . . . . . . . . . . 335 899 Existing renewal applications . . . . . . . . . . . . . . . . . . . 335 900 Exclusion of s 168(8) for any renewal application . . . 335 901 Lapsing of undecided applications to unite converted leases that relate to a converted lease. . . . . . . . . . . . 336 Division 6 Provisions for particular 1923 Act lease applications and 1923 Act lease renewal applications Subdivision 1 Existing 1923 Act, s 40 applications relating to a CSG-related 1923 Act ATP or a converted ATP 902 Application of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 336 903 Applications for CSG-related 1923 Act ATPs . . . . . . . 337 904 Other applications . . . . . . . . . . . . . . . . . . . . . . . . . . . 337 Subdivision 2 Petroleum leases provided for under particular agreements before or after 2004 Act start day 905 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 338 906 Petroleum lease under this Act may be granted if so provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338 907 Restriction on term of petroleum lease. . . . . . . . . . . . 339 Division 7 Later grant of petroleum tenure to replace equivalent 1923 Act petroleum tenure Subdivision 1 Applying for and obtaining replacement tenure 908 Right to apply for petroleum tenure . . . . . . . . . . . . . . 339 909 Continuing effect of existing tenure for grant application .......................... 340 910 Renewal application provisions apply for making and deciding grant application. . . . . . . . . . . . . . . . . . . . . . 340 911 Effect of replacement tenure on existing tenure . . . . . 342

 


 

27 Petroleum and Other Legislation Amendment Bill 2004 Subdivision 2 Special provisions for the replacement tenure 912 Restrictions on term and renewed terms . . . . . . . . . . 342 913 Relinquishment condition for replacement authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 Division 8 Matters relating to licence equivalents before 1923 Act start day 914 Requests for entry permission . . . . . . . . . . . . . . . . . . 343 915 Entry permissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 343 916 Pipeline licences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 917 Requests for pipeline licence . . . . . . . . . . . . . . . . . . . 345 918 Approvals under 1923 Act, s 75(5) continue in force . 345 919 Refinery permissions . . . . . . . . . . . . . . . . . . . . . . . . . 345 Division 9 Securities 920 Monetary securities . . . . . . . . . . . . . . . . . . . . . . . . . . 346 921 Non-monetary securities . . . . . . . . . . . . . . . . . . . . . . 347 Division 10 Compensation 922 Accrued compensation rights relating to converted petroleum authority. . . . . . . . . . . . . . . . . . . . . . . . . . . 348 923 Existing compensation agreements relating to converted petroleum authority . . . . . . . . . . . . . . . . . . 348 Division 11 Miscellaneous provisions 924 Conversion of unitisation arrangement or unit development agreement to coordination arrangement 349 925 Entry notices under Petroleum Regulation 1966, s 17 349 926 Provisions for petroleum royalty . . . . . . . . . . . . . . . . . 350 927 Corresponding approvals and decisions under 1923 Act for a converted petroleum authority . . . . . . . . . . . 350 928 Existing dealing applications . . . . . . . . . . . . . . . . . . . 351 929 Continuance of fees under 1923 Act . . . . . . . . . . . . . 352 930 Fees for existing applications . . . . . . . . . . . . . . . . . . . 352 931 References in Acts and documents to 1923 Act. . . . . 353 248 Renumbering of ss 872­993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 249 Amendment of s 933, as renumbered under this Act (Deferral of s 115(1) for existing petroleum leases) . . . . . . . . . . . . . . . . . . . . 353 250 Amendment of s 934, as renumbered under this Act (Substituted restriction for petroleum leases relating to mineral hydrocarbon mining leases) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353 251 Renumbering of ch 15 part 4, as renumbered under this Act, div 3 354 252 Insertion of new ch 15, part 4, as renumbered under this Act, div 3 354

 


 

28 Petroleum and Other Legislation Amendment Bill 2004 Division 3 Provisions for existing Water Act bores 934A Exemption from, or deferral of, reporting provisions for existing petroleum tenure holders . . . . . . . . . . . . . . . 354 934B Make good obligation only applies for existing Water Act bores on or from the 2004 Act start day. . . . . . . . 355 253 Amendment of s 935, as renumbered under this Act (Continuation of petroleum royalty exemption for flaring or venting under 1923 Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355 254 Insertion of new s 935A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 935A Deferred application of s 526 for particular petroleum authority holders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 255 Insertion of new s 942A (Amendment of s 41 of Act No. 39 of 1999) ................................... 356 942A Amendment of s 41 (Obligations of coal mine operators) ........................... 356 256 Amendment of s 944, as renumbered under this Act (Amendment of sch 2 (Subject matter for regulations) of Act No. 39 of 1999) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 257 Amendment of s 985, as renumbered under this Act (Amendment of s 239 (Contingency supply plans--content requirements) of Act No. 29 of 2003) . . . . . . . . . . . . . . . . . . . . . . 358 258 Insertion of new s 993A (Insertion of new s 132A of Act No. 12 of 2004) ............................... 358 993A Insertion of new s 132A . . . . . . . . . . . . . . . . . . . . . . . 358 259 Amendment of s 1010, as renumbered under this Act (Insertion of new s 3A of Act No. 110 of 1989) . . . . . . . . . . . . . . . 359 260 Amendment of s 1020, as renumbered under this Act (Insertion of new pt 7AA of Act 110 of 1989) . . . . . . . . . . . . . . . . 359 261 Insertion of new s 1025A, as renumbered under this Act (Insertion of new s 396A of Act No. 110 of 1989) . . . . . . . . . . . . . . . . . . . . . . . 365 1025A Insertion of new s 396A . . . . . . . . . . . . . . . . . . . . . . . 365 262 Amendment of s 1027, as renumbered under this Act (Amendment of s 417 of Act 110 of 1989) . . . . . . . . . . . . . . . . . . 366 263 Amendment of s 1028, as renumbered under this Act (Insertion of new pt 19, div 6 of Act 110 of 1989). . . . . . . . . . . . . 367 264 Amendment of s 1045, as renumbered under this Act (Amendment of s 203 of Act 34 of 2000) . . . . . . . . . . . . . . . . . . . 368 265 Insertion of new s 1052A (Insertion of new s 1136A of Act No. 34 of 2000). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368 1052A Insertion of new s 1136A . . . . . . . . . . . . . . . . . . . . . . 368 266 Insertion of new ch 16, pt 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 1054 Act amended in pt 28 . . . . . . . . . . . . . . . . . . . . . . . . . 369

 


 

29 Petroleum and Other Legislation Amendment Bill 2004 1055 Amendment of s 3 (Application of Act) . . . . . . . . . . . . 369 267 Amendment of sch 1 (Reviews and appeals) . . . . . . . . . . . . . . . . 369 268 Amendment of sch 2 (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . 370 Part 4 Amendment of Environmental Protection Act 1994 269 Act amended in pt 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 270 Insertion of new ch 13, pt 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374 Part 6 Transitional provisions for Petroleum and other Legislation Amendment Act 2004 631 Financial assurance if security for related petroleum authority is monetary . . . . . . . . . . . . . . . . . . . . . . . . . 374 632 Financial assurance if security for related petroleum authority is non-monetary. . . . . . . . . . . . . . . . . . . . . . 375 633 Effect of financial assurance on the security . . . . . . . 376 634 Amendment of financial assurance condition under this part .............................. 377 Part 5 Amendment of Forestry Act 1959 271 Act amended in pt 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 272 Amendment of s 5 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . 377 Part 6 Amendment of Nature Conservation Act 1992 273 Act amended in pt 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378 274 Amendment of s 27 (Prohibition on mining) . . . . . . . . . . . . . . . . . 378 275 Insertion of new s 70QA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 70QA Prohibition on mining in forest reserves . . . . . . . . . . . 379 Schedule Minor amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 Petroleum And Gas (Production and Safety) Act 2004 . . . . . . . . 380 Petroleum and Gas (Production and Safety) Act 2004 (amendments of Gas Supply Act 2003) . . . . . . . . . . . . . . . . . . . . 400 Petroleum and Gas (Production and Safety) Act 2004 (amendments of Geothermal Exploration Act 2004) . . . . . . . . . . 400 Petroleum and Gas (Production and Safety) Act 2004 (amendments of Mineral Resources Act 1989) . . . . . . . . . . . . . . 401 Petroleum and Gas (Production and Safety) Act 2004 (amendments of Water Act 2000). . . . . . . . . . . . . . . . . . . . . . . . . 403

 


 

 

2004 A BILL for An Act to amend the Petroleum Act 1923 and the Petroleum and Gas (Production and Safety) Act 2004, and for other purposes

 


 

s1 32 s4 Petroleum and Other Legislation Amendment Bill 2004 The Parliament of Queensland enacts-- 1 Part 1 Preliminary 2 Clause 1 Short title 3 This Act may be cited as the Petroleum and Other Legislation 4 Amendment Act 2004. 5 Clause 2 Commencement 6 (1) Part 3 and the schedule commence immediately after the date 7 of assent for the Petroleum and Gas (Production and Safety) 8 Act 2004.1 9 (2) The remaining provisions of this Act commence immediately 10 after the commencement of the Petroleum and Gas 11 (Production and Safety) Act 2004, section 32. 12 Part 2 Amendment of Petroleum Act 13 1923 14 Clause 3 Act amended in pt 2 15 This part amends the Petroleum Act 1923. 16 Clause 4 Amendment of s 2 (Definitions) 17 (1) Section 2, definitions, corporation sole, entry permission, 18 executive officer, licence, licensee, mark the land, on, permit, 19 permittee, Petroleum Advisory Board, pipeline licence, private 20 1 Part 3 (Amendment of Petroleum and Gas (Production and Safety) Act 2004) and the schedule (Minor amendments)

 


 

s4 33 s4 Petroleum and Other Legislation Amendment Bill 2004 land, refinery permission, representative and unitisation 1 arrangement-- 2 omit. 3 (2) Section 2-- 4 insert-- 5 `1923 Act petroleum tenure means an authority to prospect or 6 lease under this Act. 7 2004 Act means the Petroleum and Gas (Production and 8 Safety) Act 2004. 9 2004 Act ATP means an authority to prospect under the 2004 10 Act. 11 2004 Act lease means a petroleum lease under the 2004 Act. 12 2004 Act petroleum tenure means a 2004 Act ATP or 2004 13 Act lease. 14 2004 Act start day means the day the 2004 Act, section 32, 15 commences. 16 appeal period, for a decision, means the period provided for 17 under section 105 for starting an appeal against the decision. 18 area-- 19 1. The area of a 1923 Act petroleum tenure is any land to 20 which the tenure is subject, as recorded in the petroleum 21 register. 22 2. However, the area of a 1923 Act petroleum tenure does 23 not include any excluded land for the tenure. 24 3. The area of a 2004 Act petroleum tenure is the land to 25 which the tenure is subject, as recorded in the petroleum 26 register under that Act. 27 4. The area of a mining tenement is the land to which the 28 tenement is subject. 29 authorised activity-- 30 1. An authorised activity, for a 1923 Act petroleum tenure, 31 is an activity that its holder is, under this Act or the 32 tenure, entitled to carry out in relation to the tenure. 33

 


 

s4 34 s4 Petroleum and Other Legislation Amendment Bill 2004 2. An authorised activity, for a coal or oil shale mining 1 tenement, is an activity that its holder is, under the 2 Mineral Resources Act or the tenement, entitled to carry 3 out in relation to the tenement. 4 block means the land, identified in the way approved by the 5 chief executive, resulting from a notional division of the 6 earth's surface-- 7 (a) by 2 meridians of longitude 5 minutes apart, each 8 meridian being a multiple of 5 minutes of longitude 9 from the meridian of Greenwich; and 10 (b) by 2 parallels of latitude 5 minutes apart, each parallel 11 being a multiple of 5 minutes of latitude from the 12 equator. 13 capability criteria, for a 1923 Act petroleum tenure, means 14 the extent to which the Minister is of the opinion that its 15 holder is capable of carrying out authorised activities for the 16 tenure, having regard to the holder's-- 17 (a) financial and technical resources; and 18 (b) ability to manage petroleum exploration and production. 19 coal exploration tenement see section 76M(1). 20 coal mining lease see section 76M(2). 21 coal or oil shale mining lease means a coal mining lease or 22 oil shale mining lease under the Mineral Resources Act. 23 coal or oil shale mining tenement means a coal mining or oil 24 shale mining tenement under the Mineral Resources Act. 25 coal seam gas see section 76K(1). 26 commercial viability report see section 75F(1). 27 Commonwealth Native Title Act means the Native Title Act 28 1993 (Cwlth). 29 compensation agreement-- 30 (a) for part 6I--see section 79C(1). 31 (b) for part 6K--see section 79Q(1). 32

 


 

s4 35 s4 Petroleum and Other Legislation Amendment Bill 2004 compensation liability-- 1 (a) for part 6I--see section 79B(2); or 2 (b) for part 6K--see section 79P(3). 3 conditions of a 1923 Act petroleum tenure means-- 4 (a) the conditions stated in it from time to time; and 5 (b) the tenure holder's obligations under this Act; and 6 (c) any condition of the tenure under this Act; and 7 (d) a condition that a tenure holder must ensure each person 8 acting for the holder who carries out an authorised 9 activity for the tenure complies with its conditions to the 10 extent they apply to the carrying out of the activity.2 11 coordinated development agreement see section 177(4). 12 coordination arrangement means a coordination 13 arrangement under the 2004 Act. 14 CSG assessment criteria see section 76U(1)(b). 15 CSG statement see section 76U(1)(a). 16 current term, of an authority to prospect, see section 171. 17 dangerous situation means a situation relating to petroleum, 18 or fuel gas as defined under the 2004 Act, in which an 19 inspector under the 2004 Act reasonably believes an imminent 20 risk of material harm to persons or property is likely if action 21 is not taken to avoid, eliminate or minimise the risk. 22 development plan-- 23 1. The development plan for a lease is-- 24 (a) for a lease in force before the 2004 Act start 25 day--its current program for development and 26 production under former section 50 that, under 27 section 156, is taken to be its development plan; or 28 (b) for a lease granted after the 2004 Act start 29 day--the proposed program for development and 30 2 For who may carry out an authorised activity for the holder, see section 75E (Who may carry out authorised activity for holder).

 


 

s4 36 s4 Petroleum and Other Legislation Amendment Bill 2004 production of petroleum for the application for the 1 lease, lodged under section 40(2)(b). 2 2. However, if, under part 6, division 2, a later 3 development plan is approved for the lease, the later 4 development plan is the development plan for the lease. 5 drill, other than for sections 48, 83, 84 and 89-- 6 (a) includes to bore; and 7 (b) for, a water supply bore, includes excavating the bore. 8 eligible claimant, for compensation, see section 79P(2). 9 enter a place includes the exercise of the rights in relation to 10 the place under section 74X. 11 entry notice-- 12 (a) for part 6H--see section 78M(1)(a); and 13 (b) for part 6I--see section 79I. 14 entry period-- 15 (a) for part 6H--see section 78O(1)(b); and 16 (b) for part 6I--see section 79K. 17 Environmental Protection Act means the Environmental 18 Protection Act 1994. 19 excluded land for-- 20 (a) an authority to prospect, means excluded land for the 21 authority, decided under section 18A; or 22 (b) a lease, means excluded land for the lease, decided 23 under section 40C.3 24 explore, for petroleum, means to carry out an activity for the 25 purpose of finding petroleum in a natural underground 26 reservoir. 27 28 Examples-- 29 · conducting a geochemical, geological or geophysical survey 3 See also section 154 (Area of land in area of coal mining lease or oil shale mining lease becomes excluded land).

 


 

s4 37 s4 Petroleum and Other Legislation Amendment Bill 2004 1 · drilling a well for petroleum or the investigation of the geological 2 structure or stratigraphy in the well 3 · carrying out testing in relation to a well 4 · taking a sample for chemical or other analysis fee includes tax. 5 first tenure, for part 6J, see section 79M(1). 6 geothermal exploration permit means a geothermal 7 exploration permit under the Geothermal Exploration Act 8 2004. 9 holder, of a 1923 Act petroleum tenure, means each person 10 recorded in the petroleum register as its holder. 11 incidental coal seam gas see section 76K(2). 12 independent viability assessment see section 75H(2). 13 information notice, for a decision, means a notice stating 14 each of the following-- 15 (a) the decision, and the reasons for it; 16 (b) all appeal rights under this Act; 17 (c) the period in which any appeal under this Act must be 18 started; 19 (d) how appeal rights under this Act are to be exercised; 20 (e) that a stay of a decision the subject of an appeal under 21 this Act may be applied for under this Act. 22 later development plan requirements see section 53. 23 later work program requirements see section 25. 24 licensed water bore driller means an individual who holds a 25 water bore driller's licence under the Water Act. 26 mandatory condition for-- 27 (a) an authority to prospect, means a condition of the 28 authority imposed under part 6A, division 2 or 4 as a 29 mandatory condition or prescribed under section 90; or 30 (b) a lease, means-- 31

 


 

s4 38 s4 Petroleum and Other Legislation Amendment Bill 2004 (i) a condition of the lease imposed under part 6A, 1 division 3 or 4 as a mandatory condition or 2 prescribed under section 90 as a mandatory 3 condition; or 4 (ii) the reservations, conditions and covenants of the 5 lease imposed under section 47. 6 Mineral Resources Act means the Mineral Resources Act 7 1989. 8 mining interest means-- 9 (a) a mining tenement under the Mineral Resources Act; or 10 (b) a tenure held from the State under another Act about 11 mining, under which the holder is authorised to carry 12 out mining or a related mineral or energy resources 13 activity under the Mineral Resources Act. 14 mining lease see the Mineral Resources Act, schedule. 15 mining tenement means a mining tenement under the Mineral 16 Resources Act. 17 natural underground reservoir-- 18 1. A natural underground reservoir is a part of a 19 geological formation or structure-- 20 (a) in which petroleum has accumulated; or 21 (b) that is suitable to store petroleum. 22 2. A geological formation or structure mentioned in item 1 23 does not cease to be a natural underground reservoir 24 merely because it has been modified for petroleum 25 production or storage. 26 3. In items 1 and 2, a geological formation includes a coal 27 seam. 28 noncompliance action means action of a type mentioned in 29 section 80T. 30 notice means a written notice. 31 notifiable road use, for a 1923 Act petroleum tenure, see 32 section 78Y(1). 33

 


 

s4 39 s4 Petroleum and Other Legislation Amendment Bill 2004 occupier, of a place, means a person-- 1 (a) who, under an Act, has a right to occupy the place, other 2 than under a mining interest; or 3 (b) to whom an occupier under paragraph (a) has given the 4 right to occupy the place. 5 oil shale see section 76L. 6 oil shale exploration tenement see section 76N(1). 7 oil shale mining lease see section 76N(2). 8 on, land or another place, includes across, attached to, in, 9 under or over the land or place. 10 operate, a pipeline-- 11 1. Operate, a pipeline, includes use, inspect, test, maintain, 12 repair, alter, add to and replace the pipeline. 13 2. For item 1, using a pipeline includes using it to transport 14 petroleum. 15 operating plant see the 2004 Act, section 670.4 16 original notional sub-blocks of an authority to prospect-- 17 1. The original notional sub-blocks, of an authority to 18 prospect, are the sub-blocks stated in the instrument for 19 the authority at the following time-- 20 (a) if the authority was granted before the 2004 Act 21 start day--immediately after its first renewal after 22 that day; 23 (b) if the authority was granted after the 2004 Act start 24 day--when it was originally granted. 25 2. However, the original notional sub-blocks do not 26 include any sub-block stated in the instrument that is 27 completely within the area of a lease under this Act or a 28 2004 Act lease. 29 4 2004 Act, section 670 (What is an operating plant)

 


 

s4 40 s4 Petroleum and Other Legislation Amendment Bill 2004 3. For item 1, if the instrument-- 1 (a) states that the authority's area includes land within 2 a block; but 3 (b) does not include or exclude any particular 4 sub-block within that block; 5 the reference to the block is a reference to all sub-blocks 6 within the block, other than any sub-block that is completely 7 within the area of another 1923 Act petroleum tenure or a 8 2004 Act petroleum tenure. 9 owner-- 10 1. An owner, of land, means each person as follows in 11 relation to the land-- 12 (a) for freehold land--a registered owner; 13 (b) for land for which a person is, or will on 14 performing conditions, be entitled to a deed of 15 grant in fee simple--the person; 16 (c) if an estate in fee simple of land is being purchased 17 from the State--the purchaser; 18 (d) for a public road--the public road authority for the 19 road; 20 (e) for land that is busway land, light rail land, rail 21 corridor land or a cane railway or other 22 railway--the public land authority for the land; 23 (f) for required land under the Transport 24 Infrastructure Act 1994, section 436--the chief 25 executive of the department in which that Act is 26 administered; 27 (g) for a forest entitlement area, State forest or timber 28 reserve under the Forestry Act 1959--the chief 29 executive of the department in which that Act is 30 administered; 31 (h) for a conservation park or resources reserve under 32 the Nature Conservation Act 1992 (the NCA) for 33 which there are trustees-- 34

 


 

s4 41 s4 Petroleum and Other Legislation Amendment Bill 2004 (A) if, under the NCA, the park or reserve has 1 trustees whose powers are not 2 restricted--the trustees; or 3 (B) otherwise--the chief executive of the 4 department in which the NCA is 5 administered; 6 (i) for DOGIT land under the Aboriginal Land 7 Act 1991 or the Torres Strait Islander Land 8 Act 1991--a trustee for the land; 9 (j) for land held under a lease under the Local 10 Government (Aboriginal Lands) Act 1978, 11 section 35--a relevant local government; 12 (k) for Torres Strait Islander land under the Torres 13 Strait Islander Land Act 1991 that is taken to be a 14 reserve because of section 84(2) or 84(4)(b)6 of 15 that Act--each grantee of the land; 16 (l) for land under the Land Act 1994 for which there 17 are trustees--a trustee; 18 (m) for transport land under the Transport Planning 19 and Coordination Act 1994--the chief executive of 20 the department in which that Act is administered; 21 (n) for land vested in the Minister administering the 22 Education (General Provisions) Act 1989--that 23 Minister; 24 (o) for land vested in the Queensland Housing 25 Commission or another Minister or a chief 26 executive responsible for constructing public 27 buildings--the Minister administering the relevant 28 Act; 29 (p) for land held from the State under another Act 30 under an interest less than fee simple (other than 31 5 Local Government (Aboriginal Lands) Act 1978, section 3 (Grant of leases to councils) 6 Torres Strait Islander Land Act 1991, section 84 (Application of Mineral Resources Act)

 


 

s4 42 s4 Petroleum and Other Legislation Amendment Bill 2004 occupation rights under a permit under the Land 1 Act 1994)--the person who holds the interest; 2 (q) for any of the following land under the NCA, the 3 chief executive of the department in which the 4 NCA is administered-- 5 (i) a national park; 6 (ii) a national park (Aboriginal land); 7 (iii) a national park (scientific); 8 (iv) a national park (Torres Strait Islander land); 9 (v) a national park (recovery); 10 (vi) a forest reserve. 11 2. Also, a mortgagee of land is the owner of land if-- 12 (a) the mortgagee is acting as mortgagee in possession 13 of the land and has the exclusive management and 14 control of the land; or 15 (b) the mortgagee, or a person appointed by the 16 mortgagee, is in possession of the land and has the 17 exclusive management and control of the land. 18 3. If land has more than 1 owner, a reference in this Act to 19 its owner of the land is a reference to each of its owners. 20 permitted dealing see section 80E. 21 petroleum register means the register the chief executive 22 keeps under section 80C. 23 petroleum royalty means petroleum royalty imposed under 24 the 2004 Act, section 590. 25 place includes land. 26 plan period, for a development plan, means the period for 27 which the plan applies. 28 private land-- 29 1. Private land is-- 30 (a) freehold land; or 31

 


 

s4 43 s4 Petroleum and Other Legislation Amendment Bill 2004 (b) an interest in land less than fee simple held from 1 the State under another Act. 2 2. However, land is not private land to the extent of any of 3 the following interests in relation to the land-- 4 (a) a mining interest; 5 (b) an occupation right under a permit under the Land 6 Act 1994; 7 (c) land owned by a public land authority. 8 produced, for petroleum, means to recover or release it to 9 ground level from a natural underground reservoir in which it 10 has been contained or from which it is extracted. 11 program period, for a work program, means the period for 12 which the program applies. 13 provisions of a 1923 Act petroleum tenure-- 14 1. A reference in this Act to a 1923 Act petroleum tenure 15 includes a reference to its provisions. 16 2. A reference in this Act to the provisions of a 1923 Act 17 petroleum tenure is a reference to its mandatory or other 18 conditions and any thing written in it. 19 public land means land other than-- 20 (a) private land; or 21 (b) land to the extent of any of the following interests in 22 relation to land-- 23 (i) a mining interest; 24 (ii) an occupation right under a permit under the Land 25 Act 1994. 26 public land authority means-- 27 (a) for a public road--the road authority for the road; or 28 (b) if a local government or other authority is, under an Act, 29 charged with the control of the land--the local 30 government or other authority; or 31

 


 

s4 44 s4 Petroleum and Other Legislation Amendment Bill 2004 (c) otherwise--the chief executive of the department 1 administering the Act under which entry to the land is 2 administered. 3 public road means an area of land that-- 4 (a) is open to, or used by, the public; and 5 (b) is developed for, or has as one of its main uses-- 6 (i) the driving or riding of motor vehicles; or 7 (ii) pedestrian traffic; and 8 (c) is controlled by a public road authority. 9 10 Examples of an area of land that may be included in a road-- 11 · a bridge, culvert, ford, tunnel or viaduct 12 · a pedestrian or bicycle path public road authority, for a public road, means-- 13 (a) for a State-controlled road--the chief executive of the 14 department in which the Transport Infrastructure 15 Act 1994 is administered; or 16 (b) for another public road--the local government having 17 the control of the road. 18 recipient, for part 6F, see section 78A(1). 19 relevant environmental authority, for a 1923 Act petroleum 20 tenure, means an environmental authority under the 21 Environmental Protection Act granted for all of the authorised 22 activities for the tenure that are environmentally relevant 23 activities under the Environmental Protection Act. 24 relinquishment condition-- 25 1. Generally, the relinquishment condition, for an authority 26 to prospect is the relinquishment condition under 27 section 74A(1). 28 2. However if part 10, division 2 applies and the authority 29 is an authority to which section 173 or 174 applies, the 30 relinquishment condition for the authority is the 31 relinquishment condition under that section. 32

 


 

s4 45 s4 Petroleum and Other Legislation Amendment Bill 2004 3. The relinquishment condition for a lease is the 1 relinquishment condition under section 77M(4). 2 remedial powers see section 80L(2). 3 report means a written report. 4 required information, for part 6E, division 3, see section 76C. 5 road use direction see section 79(1). 6 safety management plan see the 2004 Act, schedule 2. 7 second tenure, for part 6J, see section 79M(1). 8 security includes bond, deposit of an amount as security, 9 guarantee, indemnity or other surety, insurance, mortgage and 10 undertaking. 11 services of the State has the same meaning that the term has 12 in relation to the State of Queensland under the Copyright Act 13 1968 (Cwlth), section 183(1).7 14 share, of a 1923 Act petroleum tenure, means any interest 15 held by a person as a holder of the tenure in all of the area of 16 the tenure. 17 specific purpose mining lease means a mining lease that, 18 under the Mineral Resources Act, section 234(1)(b), is granted 19 for a purpose other than mining. 20 State-controlled road see Transport Infrastructure Act 1994, 21 schedule 6. 22 structure means anything built or constructed, whether or not 23 attached to land. 24 sub-block means the land, identified in the way approved by 25 the chief executive, resulting from a notional division of a 26 block into 25 areas, each sub-block being bounded by 27 2 meridians of longitude 1 minute apart and 2 parallels of 28 latitude 1 minute apart. 29 submission means a written submission. 30 7 Copyright Act 1968 (Cwlth), section 183 (Use of copyright material for the services of the Crown)

 


 

s4 46 s4 Petroleum and Other Legislation Amendment Bill 2004 the public interest means a consideration of each of the 1 following-- 2 (a) government policy; 3 (b) value of commodity production (including time value); 4 (c) employment creation; 5 (d) total return to the State and to Australia (including 6 royalty and rent), assessed on both a direct and indirect 7 basis, so that, for example, downstream value adding is 8 included; 9 (e) social impacts; 10 (f) the overall economic benefit for the State, or a part of 11 the State, in the short and long term; 12 (g) impacts on aesthetic, amenity, cultural or environmental 13 values. 14 transfer, of a well, water observation bore or water supply 15 bore, see section 75N(2). 16 transitional notional sub-blocks, of an authority to prospect, 17 see section 172. 18 tribunal means the Land and Resources Tribunal. 19 usual relinquishment see section 74C(3). 20 waiver of entry notice-- 21 (a) for part 6H--see section 78M(3); and 22 (b) for part 6I--see section 79J. 23 Water Act means the Water Act 2000. 24 Water Act regulator means the chief executive of the 25 department that administers the Water Act. 26 water observation bore-- 27 1. A water observation bore is a bore to monitor water 28 levels. 29 2. A reference to a water observation bore includes its 30 casing, wellhead and any other works constructed in 31 connection with the bore. 32

 


 

s4 47 s4 Petroleum and Other Legislation Amendment Bill 2004 water supply bore means-- 1 (a) a bore, and its casing, wellhead and any other works 2 constructed in connection with it, that, under section 86, 3 is or may be used to obtain water mentioned in that 4 section; or 5 (b) a well that, under part 6D, division 2, has been 6 converted to a water supply bore. 7 well-- 8 1. A well is a hole in the ground made or being made by 9 drilling, boring or any other means-- 10 (a) to explore for or produce petroleum; or 11 (b) to inject petroleum into a natural underground 12 reservoir; or 13 (c) through which petroleum may be produced. 14 2. A well includes the casing for the well and any wellhead 15 for the well attached to it. 16 3. To remove any doubt, it is declared that a well does not 17 include any of the following-- 18 (a) a water observation bore; 19 (b) a water supply bore; 20 (c) a seismic shot hole or shallow hole drilled to work 21 out a geological structure. 22 wellhead means the casing head, and includes any casing 23 hanger or spool, or tubing hanger, and any flow control 24 equipment up to and including the wing valves. 25 work program, for an authority to prospect means-- 26 (a) its work program as approved under section 151; or 27 (b) its conditions about expenditure or work that, under 28 section 155, are taken to be its work program; or 29

 


 

s5 48 s5 Petroleum and Other Legislation Amendment Bill 2004 (c) its later work program approved under part 4, division 2, 1 as amended from time to time under that division.8'. 2 (3) Section 2, definition drilling, after `drilling'-- 3 insert-- 4 `, for sections 48, 83, 84 and 89,'. 5 (4) Section 2, definition occupier-- 6 relocate to section 51(3), as inserted under this Act. 7 (5) Section 2, definition petroleum-- 8 insert-- 9 `(g) alginite; 10 (h) coal; 11 (i) lignite; 12 (j) peat; 13 (k) shale or other rock from which a gasification or retorting 14 product as defined in the 2004 Act may be extracted or 15 produced; 16 (l) torbanite.'. 17 (6) Section 2, definition sublease, `unitisation arrangement'-- 18 omit, insert-- 19 `coordination arrangement'. 20 Clause 5 Replacement of s 3 (Words and expressions used in 21 Mineral Resources Act) 22 Section 3-- 23 omit, insert-- 24 8 See also sections 25D (Authority taken to have work program until decision on whether to approve proposed work program), 25N (Continuing effect of authority for renewal application) and 155 (Conditions of an authority to prospect about expenditure or work becomes its work program).

 


 

s5 49 s5 Petroleum and Other Legislation Amendment Bill 2004 `3 Relationship with Mineral Resources Act 1 `(1) This section does not apply to a coal or oil shale mining 2 tenement.9 3 `(2) Subject to subsections (3) to (6), the Mineral Resources Act 4 does not limit or otherwise affect-- 5 (a) the power under this Act to grant or renew a lease or 6 renew an authority to prospect over land (the 7 overlapping land) in the area of a mining tenement 8 under the Mineral Resources Act; or 9 (b) a lease or authority to prospect already granted under 10 this Act over land (also the overlapping land) in the area 11 of an existing mining tenement. 12 `(3) If the mining tenement is a mining lease (other than a 13 transportation mining lease), an authorised activity for the 14 authority to prospect or lease under this Act may be carried 15 out on the overlapping land only if-- 16 (a) the mining lease holder has agreed in writing to the 17 carrying out of the activity; and 18 (b) a copy of the agreement has been lodged at the 19 following office (the relevant office)-- 20 (i) the office of the department for lodging the 21 agreement, as stated in a gazette notice by the chief 22 executive; 23 (ii) if no office is gazetted under subparagraph (i)--the 24 office of the chief executive; and 25 (c) the agreement is still in force. 26 `(4) If the mining tenement is an exploration permit, mineral 27 development licence or transportation mining lease, an 28 authorised activity for the authority to prospect may be carried 29 out on the overlapping land only if-- 30 9 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 part 6F (Provisions for coal seam gas).

 


 

s6 50 s7 Petroleum and Other Legislation Amendment Bill 2004 (a) the mining tenement holder has agreed in writing to the 1 carrying out of the activity, a copy of the agreement has 2 been lodged at the relevant office and the agreement is 3 still in force; or 4 (b) carrying out the activity does not adversely affect the 5 carrying out of an authorised activity for the tenement 6 that has already started. 7 `(5) If the mining tenement is an exploration permit or a mineral 8 development licence and the overlapping land is in the area of 9 the lease under this Act, an authorised activity for the mining 10 tenement may be carried out on the overlapping land only if-- 11 (a) the lessee has agreed in writing to the carrying out of the 12 activity; and 13 (b) a copy of the agreement has been lodged at the relevant 14 office; and 15 (c) the agreement is still in force. 16 `(6) In this section-- 17 transportation mining lease means a mining lease granted 18 under the Mineral Resources Act section 316.10 19 `4 Relationship with Nature Conservation Act 1992 20 `This Act is subject to the Nature Conservation Act 1992, 21 sections 27 and 79QA11.'. 22 Clause 6 Amendment of s 7 (Application of Act) 23 Section 7(1)-- 24 omit. 25 Clause 7 Insertion of new s 7B 26 Part 1, after section 7A-- 27 10 Mineral Resources Act section 316 (Mining lease for transportation through land) 11 Nature Conservation Act 1992, sections 27 (Prohibition on mining) and 79QA (Prohibition on mining in forest reserves)

 


 

s8 51 s 13 Petroleum and Other Legislation Amendment Bill 2004 insert-- 1 `7B Notes in text 2 `A note in the text of this Act is part of this Act.'. 3 Clause 8 Omission of pt 2 (Petroleum Advisory Board) 4 Part 2-- 5 omit. 6 Clause 9 Amendment of s 10 (Reservations in grants) 7 Section 10, `permits and'-- 8 omit. 9 Clause 10 Omission of ss 11­16 10 Sections 11 to 16-- 11 omit. 12 Clause 11 Replacement of pt 4, heading (Prospecting permits and 13 leases) 14 Part 4, heading-- 15 omit, insert-- 16 `Part 4 Authorities to prospect 17 `Division 1 General provisions'. 18 Clause 12 Omission of s 17 (Permits and leases) 19 Section 17-- 20 omit. 21 Clause 13 Amendment of s 18 (Authority to prospect) 22 (1) Section 18(1)-- 23

 


 

s 14 52 s 14 Petroleum and Other Legislation Amendment Bill 2004 omit. 1 (2) Section 18(2), `such authority'-- 2 omit, insert-- 3 `an authority to prospect'. 4 (3) Section 18(5), (6) and (8)-- 5 omit. 6 Clause 14 Insertion of new s 18A 7 After section 18-- 8 insert-- 9 `18A Minister's power to decide excluded land for authority 10 to prospect 11 `(1) The Minister may decide excluded land for an authority to 12 prospect. 13 `(2) However, the power under subsection (1) may be exercised 14 only when the Minister is deciding whether to-- 15 (a) grant or renew the authority; or 16 (b) approve any later work program for the authority. 17 `(3) Also, excluded land-- 18 (a) must be within the sub-blocks stated in the instrument 19 for the authority; and 20 (b) can not be-- 21 (i) a whole block; or 22 (ii) land in the area of another 1923 Act petroleum 23 tenure. 24 `(4) For subsection (3)(a), if the instrument-- 25 (a) states that the authority's area includes land within a 26 block; but 27 (b) does not include or exclude any particular sub-block 28 within that block; 29

 


 

s 15 53 s 16 Petroleum and Other Legislation Amendment Bill 2004 the reference to the block is a reference to all sub-blocks 1 within the block, other than any sub-block that is completely 2 within the area of another 1923 Act petroleum tenure or a 3 2004 Act petroleum tenure. 4 `(5) Excluded land may be described in a way the Minister 5 considers appropriate, including, for example, by area or by 6 reference to a stated type of land. 7 `(6) Land ceases to be excluded land for an authority to prospect 8 if-- 9 (a) the block in which the land is located is relinquished or, 10 for any other reason, ceases to be in the area of the 11 authority; or 12 (b) a lease under this Act or a 2004 Act lease is granted over 13 any of the area of the authority and the land is excluded 14 land for the lease.'. 15 Clause 15 Replacement of s 20 (Renewal of authority to prospect) 16 Section 20-- 17 omit, insert-- 18 `20 Area of authority to prospect reduced on grant of 19 lease 20 `(1) Land ceases to be included in the area of an authority to 21 prospect if a lease is granted over the land. 22 `(2) If a lease is granted over all of the area of an authority to 23 prospect, the authority ends.'. 24 Clause 16 Amendment of s 21 (Surrender of authority to prospect) 25 (1) Section 21(1), after `holder of an authority to prospect may'-- 26 insert-- 27 `, with the Minister's approval,'. 28 (2) Section 21-- 29 insert-- 30

 


 

s 17 54 s 18 Petroleum and Other Legislation Amendment Bill 2004 `(1A) However, the Minister's approval is not required if the 1 surrender is the surrender of a part of the area of the authority 2 that overlaps with the area of a lease under this Act or a 2004 3 Act lease.'. 4 (3) Section 21(3), `in the Wardens Court'-- 5 omit. 6 (4) Section 21(4)-- 7 omit, insert-- 8 `(4) The holder may obtain the approval only by an application-- 9 (a) made in the approved form; and 10 (b) lodged at-- 11 (i) the office of the department for lodging authority 12 to prospect surrender applications, as stated in a 13 gazette notice by the chief executive; or 14 (ii) if no office is gazetted under subparagraph (i)--the 15 office stated in the approved form; or 16 (iii) if the approved form does not state an office--the 17 office of the chief executive; and 18 (c) accompanied by-- 19 (i) the fee prescribed under a regulation; and 20 (ii) a report by the applicant about authorised activities 21 for the authority carried out on the area the subject 22 of the application, and the results of the activities.'. 23 Clause 17 Omission of s 22 and 23 24 Sections 22 and 23-- 25 omit. 26 Clause 18 Amendment of s 24 (Qualification of permittees and 27 lessees) 28 (1) Section 24, heading, `permittees and lessees'-- 29 omit, insert-- 30

 


 

s 19 55 s 19 Petroleum and Other Legislation Amendment Bill 2004 `1923 Act petroleum tenure holders'. 1 (2) Section 24, `a permit or lease'-- 2 omit, insert-- 3 `a 1923 Act petroleum tenure'. 4 (3) Section 24-- 5 insert-- 6 `(ba) any government owned corporation;'. 7 (4) Section 24-- 8 relocate and renumber in part 1 as section 7AA. 9 Clause 19 Replacement of s 25 (Limit to number of permits and 10 leases) 11 Section 25-- 12 omit, insert-- 13 `Division 2 Work programs 14 `Subdivision 1 Requirements for proposed later 15 work programs 16 `25 Operation of sdiv 1 17 `This subdivision provides for requirements (the later work 18 program requirements) for a proposed work program for an 19 authority to prospect.12 20 `25A General requirements 21 `(1) The proposed program must include each of the following-- 22 12 For initial work programs see sections 151 (Unfinished authority to prospect applications for which a Commonwealth Native Title Act s 29 notice has been given) and 155 (Conditions of an authority to prospect about expenditure or work becomes its work program).

 


 

s 19 56 s 19 Petroleum and Other Legislation Amendment Bill 2004 (a) an overview of the activities proposed to be carried out 1 under the authority or proposed authority during all of 2 its term; 3 (b) for each year of the program period, a statement about-- 4 (i) the extent and nature of petroleum exploration and 5 testing for petroleum production proposed to be 6 carried out during the year; and 7 (ii) generally where the activities are proposed to be 8 carried out; and 9 (iii) the estimated cost of the activities; 10 (c) maps that show where the activities are proposed to be 11 carried out; 12 (d) any other information relevant to the matters mentioned 13 in section 25E(2);13 14 (e) reasons that the program is considered appropriate; 15 (f) a statement about the extent to which the current work 16 program for the authority to prospect has been complied 17 with; 18 (g) if there have been any amendments to the authority or its 19 current work program, a statement about-- 20 (i) whether the changes have been incorporated in the 21 proposed program; and 22 (ii) any effect the changes have on the proposed 23 program; 24 (h) a statement about the effect of any petroleum discovery 25 on the proposed program; 26 (i) another matter prescribed under a regulation. 27 `(2) A regulation may impose requirements about the form in 28 which the matters mentioned in subsection (1) must be given. 29 `(3) In this section-- 30 year, of the program period, means-- 31 13 Section 25E (Deciding whether to approve proposed program)

 


 

s 19 57 s 19 Petroleum and Other Legislation Amendment Bill 2004 (a) the period starting on the day the program period starts 1 and ending on the first anniversary of that day; and 2 (b) each subsequent period of 12 months or less during the 3 program period, starting on each anniversary of that day 4 and ending on-- 5 (i) the next anniversary of that day; or 6 (ii) if the program period ends before the next 7 anniversary--the day the program period ends. 8 `25B Program period 9 `(1) The proposed program must state its period. 10 `(2) The period must not be longer than-- 11 (a) if the term of the rest, or the renewed term, of the 12 authority is less than 4 years--the rest of its term or 13 renewed term; or 14 (b) if the term of the rest, or the renewed term, of the 15 authority is 4 years or more, the following-- 16 (i) generally--4 years from the start of the period; 17 (ii) if the Minister approves a longer period--the 18 longer period. 19 `(3) However, the Minister can not approve a period longer than 20 the rest of the term or renewed term of the authority. 21 `Subdivision 2 Approval of proposed later work 22 programs 23 `25C Application of sdiv 2 24 `This subdivision applies if, under this Act, a proposed later 25 work program is lodged for approval.14 26 14 For requirements to lodge a proposed later work program, see sections 25M (Requirements for making application), 74K (Obligation to lodge proposed later work program) and 80T (Types of noncompliance action that may be taken).

 


 

s 19 58 s 19 Petroleum and Other Legislation Amendment Bill 2004 `25D Authority taken to have work program until decision 1 on whether to approve proposed work program 2 `(1) This section applies until-- 3 (a) if the proposed program is approved--the authority to 4 prospect holder is given notice of the approval; or 5 (b) if approval of the proposed program is refused--when 6 the refusal takes effect.15 7 `(2) Despite the ending of the program period for the current work 8 program for the authority to prospect-- 9 (a) the authority is taken to have a work program; and 10 (b) the holder may carry out any authorised activity for the 11 authority. 12 `25E Deciding whether to approve proposed program 13 `(1) The Minister may approve or refuse to approve the proposed 14 program. 15 `(2) The matters that must be considered in deciding whether to 16 approve the proposed program include each of the 17 following-- 18 (a) the appropriateness of the proposed program, having 19 regard to-- 20 (i) the potential of the area of the authority to prospect 21 for petroleum discovery; and 22 (ii) the extent and nature of the proposed petroleum 23 exploration; 24 25 Examples-- 26 · proposed geological, geophysical or geochemical 27 surveying 28 · the number of wells the authority to prospect holder 29 proposes to drill, and their type 15 For when the decision takes effect, see section 25F (Steps after, and taking effect of, decision).

 


 

s 19 59 s 19 Petroleum and Other Legislation Amendment Bill 2004 (iii) when and where the authority to prospect holder 1 proposes to carry out the exploration; 2 (b) the capability criteria; 3 (c) the extent to which the current work program has been 4 complied with; 5 (d) any amendments made to the authority or its current 6 work program, and the reasons for the changes; 7 (e) any notice under section 75Y,16 commercial viability 8 report or independent viability assessment for the 9 authority. 10 `25F Steps after, and taking effect of, decision 11 `(1) On approval of the proposed later work program, the holder 12 must be given notice of the approval. 13 `(2) On refusal to approve the later work program, the holder must 14 be given an information notice about the decision to refuse. 15 `(3) An approval takes effect when the holder is given the notice 16 or, if the notice states a later day of effect, on that later day. 17 `(4) A refusal does not take effect until the end of the appeal 18 period for the refusal.17 19 `Subdivision 3 Amending work programs 20 `25G Restrictions on amending work program 21 `(1) An authority to prospect holder may amend the work program 22 for the authority only if-- 23 (a) an application for approval of the amendment has been 24 made under this subdivision and the amendment has 25 been approved under this subdivision;18 and 26 16 Section 75Y (Notice about discovery and commercial viability) 17 See sections 105 (Period to appeal) and 107 (Stay of operation of decision). 18 See also section 91 (Inclusion of evaluation program in work program).

 


 

s 19 60 s 19 Petroleum and Other Legislation Amendment Bill 2004 (b) if the amendment is to extend the period of the work 1 program--the requirements under subsection (2) have 2 been complied with. 3 `(2) For subsection (1)(b), the requirements are each of the 4 following-- 5 (a) the work program can not be the initial work program 6 for the authority; 7 (b) the period of the work program, or any earlier work 8 program for the authority, must not have previously 9 been extended; 10 (c) the extension can not be for a term that ends after-- 11 (i) 1 year after the current period of the work 12 program; or 13 (ii) 12 years after the authority originally took effect; 14 (d) within 3 months before the making of the application-- 15 (i) a person (the designated person) become a holder 16 of the authority; or 17 (ii) a person (also the designated person) applied for 18 approval of a transfer of a share in the authority 19 and the transfer has, under section 573,19 been 20 approved; 21 (e) the share, or proposed share, of the designated person in 22 the authority is at least 50%; 23 (f) the designated person is not, under the Corporations 24 Act, section 64B,20 an entity connected with another 25 person who is a holder of the authority. 26 `(3) In this section-- 27 initial work program means-- 28 (a) a work program approved under section 151; or 29 19 Section 573 (Deciding application) 20 Corporations Act, section 64B (Entities connected with a corporation)

 


 

s 19 61 s 19 Petroleum and Other Legislation Amendment Bill 2004 (b) conditions about expenditure or work that, under 1 section 155, are taken to be the work program for the 2 authority. 3 `25H Applying for approval to amend 4 `(1) An authority to prospect holder may apply for approval to 5 amend the work program for the authority. 6 `(2) However, the application can not be made less than 7 20 business days before the end of the period stated in the 8 plan for carrying out work under the existing work program. 9 `25I Requirements for making application 10 `The application must be-- 11 (a) lodged at-- 12 (i) the office of the department for lodging work 13 program amendment applications, as stated in a 14 gazette notice by the chief executive; or 15 (ii) if no office is gazetted--the office of the chief 16 executive; and 17 (b) accompanied by the fee prescribed under a regulation. 18 `25J Deciding application 19 `(1) If the proposed amendment-- 20 (a) does not relate to the work program for the authority to 21 prospect provided for under section 155;21 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 25 activity is at least of an equivalent value to the original 26 activity. 27 21 Section 155 (Conditions of an authority to prospect about expenditure or work becomes its work program)

 


 

s 19 62 s 19 Petroleum and Other Legislation Amendment Bill 2004 `(2) If the application is to extend the period of the work program 1 for the authority, the Minister may approve the amendment 2 only if satisfied -- 3 (a) the requirements under section 25G(2) have been 4 complied with; and 5 (b) the designated person mentioned in section 25G(2) is 6 likely to provide additional financial or technical 7 resources for the authority; and 8 (c) the work program will be completed within the period 9 of the extension. 10 11 Note-- 12 For additional provisions about relinquishment that apply if the 13 period is extended, see sections 74A(1)(c) and 74J.22 `(3) Otherwise, the Minister may approve the amendment only if 14 satisfied it is necessary because of a circumstance-- 15 (a) not related to-- 16 (i) the applicant's financial or technical resources or 17 ability to manage petroleum exploration; or 18 (ii) the results of exploration; and 19 (b) the happening of which is or was beyond the applicant's 20 control; and 21 (c) that could not have been prevented by a reasonable 22 person in the applicant's position. 23 `(4) Also, if the amendment is approved under subsection (2), any 24 relinquishment day for the authority may be deferred for a 25 period that relates to a circumstance mentioned in 26 subsection (3). 27 `(5) A deferral under subsection (4)-- 28 (a) can not be for longer than 12 years after the authority 29 took effect; and 30 22 Sections 74A (Standard relinquishment condition) and 74J (Penalty relinquishment if work program not completed within extended period)

 


 

s 19 63 s 19 Petroleum and Other Legislation Amendment Bill 2004 (b) does not defer any later relinquishment day for the 1 authority. 2 `(6) If, under this section, an amendment is approved, a condition 3 may be imposed on the authority requiring its holder to 4 relinquish, by a notice lodged at the following office, at least a 5 stated percentage of the original notional sub-blocks of the 6 authority on or before a stated day-- 7 (a) the office of the department for lodging relinquishment 8 notices, as stated in a gazette notice by the chief 9 executive; 10 (b) if no office is gazetted under paragraph (a)--the office 11 of the chief executive. 12 `25K Steps after, and taking effect of, decision 13 `(1) On approval of the proposed amendment, the holder must be 14 given notice of the approval. 15 `(2) On refusal to approve the proposed amendment, the holder 16 must be given an information notice about the decision to 17 refuse. 18 `(3) An approval takes effect when the holder is given the notice 19 or, if the notice states a later day of effect, on that later day. 20 `Division 3 Renewals 21 `25L Conditions for renewal application 22 `(1) An authority to prospect holder may apply to renew the 23 authority only if none of the following is outstanding-- 24 (a) annual rent for the authority; 25 (b) a civil penalty under section 74W for nonpayment of 26 annual rent; 27 (c) interest payable under section 10223 on annual rent or a 28 civil penalty; 29 23 Section 102 (Interest on amounts owing to the State under this Act)

 


 

s 19 64 s 19 Petroleum and Other Legislation Amendment Bill 2004 (d) petroleum royalty for petroleum produced under the 1 authority and any unpaid petroleum royalty interest on 2 it; 3 (e) security required for the authority, as required under 4 section 78E.24 5 `(2) Also the application can not be made-- 6 (a) if any of the following provides that the authority is to 7 be renewed under another Act-- 8 (i) an agreement mentioned in the Commonwealth 9 Native Title Act, section 31(1)(b);25 10 (ii) an indigenous land use agreement registered on the 11 register of indigenous land use agreement under 12 the Commonwealth Native Title Act;26 or 13 (b) if section 17327 applies and the relinquishment condition 14 under that section has not been complied with; or 15 (c) if a part of the area of the authority overlaps with the 16 area of a lease under this Act or a 2004 Act lease; or 17 (d) more than 60 business days before the end of the term 18 of the authority; or 19 (e) after the authority has ended. 20 `25M Requirements for making application 21 `(1) The application must-- 22 (a) be in the approved form; and 23 (b) be lodged at-- 24 (i) the office of the department for lodging authority 25 to prospect renewal applications, as stated in a 26 gazette notice by the chief executive; or 27 24 Section 78E (Power to require security for 1923 Act petroleum tenure) 25 Commonwealth Native Title Act, section 31 (Normal negotiation procedure) 26 See the 2004 Act, section 908 (Right to apply for petroleum tenure). 27 Section 173 (Relinquishment condition if authority includes a reduction requirement)

 


 

s 19 65 s 19 Petroleum and Other Legislation Amendment Bill 2004 (ii) if no office is gazetted under subparagraph (i)--the 1 office 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 authority 4 to prospect has been complied with; and 5 (d) if the work program has not been complied with--state 6 details of, and the reasons for, each noncompliance; and 7 (e) include a proposed later work program for the renewed 8 authority; and 9 (f) include a statement about how and when the applicant 10 proposes to consult with, and keep informed, each 11 owner and occupier of private or public land on which 12 authorised activities for the renewed authority are, or are 13 likely to be, carried out;28 and 14 (g) address the capability criteria; and 15 (h) include information about the matters that, under 16 sections 80J and 80K,29 must or may be considered in 17 deciding the application; and 18 (i) state whether or not the applicant has complied with 19 part 6E,30 for reports required to be lodged in relation to 20 the authority; and 21 (j) be accompanied by-- 22 (i) the application fee prescribed under a regulation; 23 and 24 (ii) if the application is made less than 20 business 25 days before end of the term of the authority--an 26 amount that is 10 times the application fee. 27 28 See section 74V (Obligation to consult with particular owners and occupiers). 29 Sections 80J (Deciding application) and 80K (Criteria for decisions) 30 Part 6E (Reporting)

 


 

s 19 66 s 19 Petroleum and Other Legislation Amendment Bill 2004 `(2) The proposed work program must comply with the later work 1 program requirements.31 2 `25N Continuing effect of authority for renewal application 3 `(1) This section applies if before the application is decided the 4 term of the authority to prospect ends. 5 `(2) Despite the ending of the term, the authority continues in 6 force until the earlier of the following to happen-- 7 (a) the start of any renewed term of the authority; 8 (b) a refusal of the application takes effect; 32 9 (c) the application is withdrawn; 10 (d) the authority is cancelled under this Act.33 11 `(3) If the authority is renewed, subsection (2) is taken never to 12 have applied for the period from the end of the term of the 13 authority being renewed, as stated in that authority.34 14 `25O Deciding application 15 `(1) The Minister may grant or refuse the renewal. 16 `(2) However-- 17 (a) before deciding to grant the renewal, the Minister must 18 decide whether to approve the applicant's proposed later 19 work program for the renewed authority to prospect;35 20 and 21 (b) the renewal can not be granted unless-- 22 (i) the proposed program has been approved; and 23 31 See division 2, subdivision 1 (Requirements for proposed later work programs). For approval of the proposed program, see part 4, division 2, subdivision 2 (Approval of proposed later work programs). 32 See section 25T (When refusal takes effect). 33 See also section 25D (Authority taken to have work program until decision on whether to approve proposed work program). 34 See section 25Q (Other provisions and taking effect of renewed authority). 35 See part 4, division 2, subdivision 2 (Approval of proposed later work programs).

 


 

s 19 67 s 19 Petroleum and Other Legislation Amendment Bill 2004 (ii) the applicant satisfies the capability criteria; and 1 (iii) the Minister is satisfied the applicant has 2 substantially complied with the authority to 3 prospect being renewed; and 4 (iv) a relevant environmental authority for the renewed 5 authority to prospect has been issued. 6 `(3) The Minister may, as a condition of deciding to grant the 7 application, require the applicant to do all or any of the 8 following within a stated reasonable period-- 9 (a) pay the annual rent for the first year of the renewed 10 authority; 11 (b) give security for the renewed authority, as required 12 under section 78E.36 13 `(4) If the applicant does not comply with the requirement, the 14 application may be refused. 15 `25P Term and area of renewed authority 16 `(1) Each renewed authority to prospect must state its term and 17 area. 18 `(2) The term can not-- 19 (a) end after-- 20 (i) 1 November 2021; or 21 (ii) 12 years from when the renewed authority to 22 prospect takes effect under section 25Q. 23 (b) be longer than the term of the authority that immediately 24 preceded the renewed term. 25 `(3) Subsection (2)(b) applies despite-- 26 (a) whether the authority to prospect has previously been 27 renewed; and 28 (b) any previous renewal of the authority. 29 36 Section 78E (Power to require security for 1923 Act petroleum tenure)

 


 

s 19 68 s 19 Petroleum and Other Legislation Amendment Bill 2004 `(4) The area can not be more than the area of the authority to 1 prospect being renewed immediately before the renewed 2 authority is to take effect. 3 `25Q Other provisions and taking effect of renewed 4 authority 5 `(1) A renewed authority to prospect may state-- 6 (a) conditions or other provisions of the renewed authority, 7 other than conditions or provisions that are-- 8 (i) inconsistent with the mandatory conditions for 9 authorities to prospect; or 10 (ii) the same as, or substantially the same as, or 11 inconsistent with, any relevant environmental 12 condition for the renewed authority; and 13 (b) relinquishment days for the renewed authority. 14 `(2) To remove any doubt, it is declared that the conditions of the 15 renewed authority may be different from the conditions or 16 other provisions of the authority to prospect being renewed. 17 `(3) The provisions of the renewed authority may exclude or 18 restrict the carrying out of an authorised activity for the 19 renewed authority. 20 `(4) The first relinquishment day for the renewed authority must 21 not be later than 4 years after the day the renewed authority is 22 to take effect. 23 `(5) If relinquishment days are not stated, its relinquishment days 24 are taken to be-- 25 (a) the day that is the fourth anniversary of the day the 26 renewed authority starts under subsection (6) or (7); and 27 (b) each day during its term that is a 4 yearly interval after 28 that day. 29 `(6) If the renewed authority is decided before the end of the term 30 of the authority to prospect being renewed as stated in that 31 authority (the previous term), the term of the renewed 32 authority is taken to start from the end of the previous term. 33

 


 

s 19 69 s 19 Petroleum and Other Legislation Amendment Bill 2004 `(7) If the renewed authority is decided after the previous term, the 1 term of the renewed authority starts immediately after the end 2 of the previous term, but-- 3 (a) the conditions of the renewed authority do not start until 4 the authority holder is given notice of them; and 5 (b) until the notice is given, the conditions of the authority 6 to prospect being renewed apply to the renewed 7 authority as if they were its conditions. 8 `25R Criteria for decisions 9 `(1) The matters that must be considered in deciding whether to 10 grant the renewal or deciding the provisions of the renewed 11 authority include-- 12 (a) the matters mentioned in section 25E(2);37 and 13 (b) whether the applicant continues to satisfy the capability 14 criteria. 15 `(2) In this section-- 16 satisfies, the capability criteria, means the Minister continues 17 to have the opinion mentioned in the definition of capability 18 criteria in section 2 about the holder of the authority to 19 prospect being renewed. 20 `25S Information notice about refusal 21 `On refusal of the application, the applicant must be given an 22 information notice about the decision to refuse. 23 `25T When refusal takes effect 24 `A refusal of the application does not take effect until end of 25 the appeal period for the decision to refuse.38 26 37 Section 25E (Deciding whether to approve proposed program) 38 See sections 105 (Period to appeal) and 107 (Stay of operation of decision).

 


 

s 20 70 s 22 Petroleum and Other Legislation Amendment Bill 2004 `Division 4 Expiry of part 1 `25U Expiry of pt 4 and ending of authorities to prospect 2 `(1) This part expires on 1 November 2021. 3 `(2) All authorities to prospect end on 1 November 2021.'. 4 Clause 20 Omission of pt 5, other than s 35 5 Part 5, other than section 35-- 6 omit. 7 Clause 21 Amendment of s 35 (Rights to water etc.) 8 (1) Section 35, heading-- 9 omit, insert-- 10 `35 Miscellaneous rights'. 11 (2) Section 35, `permittee'-- 12 omit, insert-- 13 `holder of an authority to prospect'. 14 (3) Section 35, `permittee's'-- 15 omit, insert-- 16 `holder's'. 17 (4) Section 35, as amended-- 18 relocate to division 1, as inserted under this Act, and 19 renumber as section 24. 20 Clause 22 Insertion of new pt 6, div 1, hdg 21 After part 6, heading-- 22 insert-- 23 `Division 1 General provisions for leases'. 24

 


 

s 23 71 s 24 Petroleum and Other Legislation Amendment Bill 2004 Clause 23 Amendment of s 40 (Lease to holder of authority to 1 prospect or permittee) 2 (1) Section 40, heading `or permittee'-- 3 omit. 4 (2) Section 40(1), `or a permittee'-- 5 omit. 6 (3) Section 40(1), `or permit'-- 7 omit. 8 (4) Section 40-- 9 insert-- 10 `(1A) The right to apply under subsection (1) applies only to the 11 extent that the area of the proposed lease is not in the area of a 12 coal or oil shale mining tenement.39'. 13 (5) Section 40-- 14 insert-- 15 `(4A) The lease can not have a term of more than 30 years.'. 16 (6) Section 40-- 17 insert-- 18 `(9) This section expires on 1 November 2021.'. 19 Clause 24 Insertion of new ss 40A and 40B 20 After section 40-- 21 insert-- 22 `40A Continuing effect, for s 40 application, of authority to 23 prospect and its work program 24 `(1) This section applies if, other than for subsection (2), the 25 relevant authority to prospect would, other than by 26 39 For an authority to prospect in the area of a coal or oil shale mining tenement, see the 2004 Act, chapter 15, part 3, division 4 (Transition, by application, from 1923 Act ATP to petroleum lease under this Act).

 


 

s 24 72 s 24 Petroleum and Other Legislation Amendment Bill 2004 cancellation under this Act, end before an application under 1 section 40 is granted. 2 `(2) The authority continues in force in relation to the area the 3 subject of the application until the earlier of the following to 4 happen-- 5 (a) the start of the term of the lease the subject of the 6 application; 7 (b) the application is withdrawn. 8 `(3) While the authority continues in force under subsection (2), 9 and despite any ending of the program period for its work 10 program-- 11 (a) the authority is taken to have a work program; and 12 (b) its holder may carry out any authorised activity for the 13 authority. 14 `40B Minister's power to decide excluded land for lease 15 `(1) The Minister may, at any time, decide excluded land for a 16 lease or a lease proposed to be granted under section 40. 17 `(2) However, the power under subsection (1) may be exercised 18 only when the Minister is deciding whether to-- 19 (a) grant or renew the lease; or 20 (b) approve any later development plan for the lease. 21 `(3) However, excluded land-- 22 (a) must be within any sub-block that the lease states is 23 included in the area of the lease; and 24 (b) can not be a whole sub-block. 25 `(4) For subsection (3)(a), if the instrument-- 26 (a) states that the lease's area includes land within a block; 27 but 28 (b) does not include or exclude any particular sub-block 29 within that block; 30 the reference to the block is a reference to all sub-blocks 31 within the block, other than any sub-block that is completely 32

 


 

s 25 73 s 27 Petroleum and Other Legislation Amendment Bill 2004 within the area of another 1923 Act petroleum tenure or a 1 2004 Act petroleum tenure. 2 `(5) Excluded land may be described in a way the Minister 3 considers appropriate, including, for example, by area or by 4 reference to a stated type of land. 5 `(6) Land ceases to be excluded land for a lease if, for any reason, 6 the sub-block in which the land is located ceases to be in the 7 area of the lease.'. 8 Clause 25 Omission of ss 41­43 9 Sections 41 to 43-- 10 omit. 11 Clause 26 Amendment of s 44 (Form etc. of lease) 12 Section 44-- 13 insert-- 14 `(d) be subject to the mandatory conditions for leases and 15 any conditions decided by the Governor in Council.'. 16 Clause 27 Amendment of s 45 (Entitlement to renewal of lease) 17 (1) Section 45, before subsection (1)-- 18 insert-- 19 `(1AA) This section does not apply to a lease that ends after 20 1 November 2021.'. 21 (2) Section 45(1), `this Act,'-- 22 omit, insert-- 23 `this Act and the 2004 Act, chapter 6,40'. 24 (3) Section 45, after subsection (1)-- 25 insert-- 26 40 2004 Act, chapter 6 (Petroleum royalty)

 


 

s 27 74 s 27 Petroleum and Other Legislation Amendment Bill 2004 `(1A) However, subsection (1) only applies if-- 1 (a) the lease is a lease that has any number as follows-- 2 (i) 1 to 18, inclusive; 3 (ii) 21 to 93, inclusive; 4 (iii) 98; 5 (iv) 101; 6 (v) 115 to 117, inclusive; 7 (vi) 204; or 8 (b) the lease is prescribed under a regulation notified before 9 the 2004 Act start day. 10 (c) the lease is not a lease mentioned in paragraph (a) or (b) 11 and, before the 2004 Act start day, a notice under the 12 Commonwealth Native Title Act, section 29,41 was given 13 for the renewal;42 or 14 (d) an agreement as follows provides for the renewal of the 15 lease under this Act and the negotiations for the 16 agreement started before the 2004 Act start day-- 17 (i) an agreement mentioned in the Commonwealth 18 Native Title Act, section 31(1)(b);43 19 (ii) an indigenous land use agreement registered on the 20 register of indigenous land use agreement under 21 the Commonwealth Native Title Act.44'. 22 (4) Section 45(2), after `, is to'-- 23 insert-- 24 `by an application'. 25 (5) Section 45(2)(b)-- 26 omit, insert-- 27 41 Commonwealth Native Title Act section 29 (Notification of parties affected) 42 See also section 906 (Non-renewability of particular leases). 43 Commonwealth Native Title Act, section 31 (Normal negotiation procedure) 44 See the 2004 Act, section 908 (Right to apply for petroleum tenure).

 


 

s 28 75 s 28 Petroleum and Other Legislation Amendment Bill 2004 `(b) state whether or not the development plan for the lease45 1 has been complied with; and 2 (c) if the development plan for the lease has not been 3 complied with--state details of, and the reasons for, 4 each noncompliance.'. 5 (6) Section 45-- 6 insert-- 7 `(2A) The application must-- 8 (a) be in the approved form; and 9 (b) include a proposed later development plan for the 10 renewed lease; and 11 (c) be lodged at-- 12 (i) the office of the department for lease renewal 13 applications, as stated in a gazette notice by the 14 chief executive; or 15 (ii) if no office is gazetted under subparagraph (i)--the 16 office stated in the approved form; or 17 (iii) if the approved form does not state an office--the 18 office of the chief executive; and 19 (d) be accompanied by-- 20 (i) the application fee prescribed under a regulation; 21 and 22 (ii) if the application is made less than 40 business 23 days before the end of the term of the lease--an 24 amount that is 10 times the application fee. 25 `(2B) The proposed plan must comply with the later development 26 plan requirements.'. 27 Clause 28 Replacement of s 46 (Rent) 28 Section 46-- 29 45 See also section 156 (Program for development and production for a lease becomes its development plan).

 


 

s 29 76 s 32 Petroleum and Other Legislation Amendment Bill 2004 omit, insert-- 1 `46 Annual rent 2 `(1) A lessee must pay the State the annual rent, as prescribed 3 under a regulation. 4 `(2) The annual rent must be paid in the way, and on or before the 5 day, prescribed under a regulation.'. 6 Clause 29 Amendment of s 47 (Reservations, conditions and 7 covenants of lease) 8 Section 47(1)(c), from `the prescribed royalty'-- 9 omit, insert-- 10 `the State petroleum royalty, as required under the 2004 Act, 11 chapter 6;46'. 12 Clause 30 Omission of ss 49 and 50 13 Sections 49 and 50-- 14 omit. 15 Clause 31 Amendment of s 51 (Use and occupation of mining area 16 on private or improved land) 17 Section 51-- 18 insert-- 19 `(3) In this section--'. 20 Clause 32 Amendment of s 52 (Surrender and determination of 21 lease) 22 Section 52-- 23 insert-- 24 `(1A) The consent may be given only on the application of the 25 lessee. 26 46 2004 Act, chapter 6 (Petroleum royalty)

 


 

s 33 77 s 33 Petroleum and Other Legislation Amendment Bill 2004 `(1B) The application must be-- 1 (a) in the approved form; and 2 (b) lodged at-- 3 (i) the office of the department for lease surrender 4 applications, as stated in a gazette notice by the 5 chief executive; or 6 (ii) if no office is gazetted under subparagraph (i)--the 7 office stated in the approved form; or 8 (iii) if the approved form does not state an office--the 9 office of the chief executive; and 10 (c) be accompanied by-- 11 (i) the fee prescribed under a regulation; and 12 (ii) a report by the applicant about the activities carried 13 out on the area the subject of the application, and 14 the results of the activities.47'. 15 Clause 33 Insertion of new s 52A 16 After section 52-- 17 insert-- 18 `52A Application of 2004 Act provisions about coextensive 19 natural underground reservoirs 20 `The 2004 Act, chapter 2, part 2, division 1, subdivision 248 21 applies to a lease as if a reference in the subdivision to a 22 petroleum lease were a reference to a lease under this Act.49'. 23 47 For provisions about applying to convert the surrendered authority, or part of the surrendered authority, to a 2004 Act ATP, see the 2004 Act chapter 15, part 3, division 7 (Later grant of petroleum tenure to replace equivalent 1923 Act petroleum tenure). 48 2004 Act, chapter 2, part 2, division 1, subdivision 2 (Provisions for coextensive natural underground reservoirs) 49 See however section 168 (Deferral of s 52A for existing leases).

 


 

s 34 78 s 34 Petroleum and Other Legislation Amendment Bill 2004 Clause 34 Replacement of s 53 (Proceedings for forfeiture) 1 Section 53-- 2 omit, insert-- 3 `Division 2 Development plans 4 `Subdivision 1 Requirements for proposed later 5 development plans 6 `53 Operation of sdiv 1 7 `This subdivision provides for requirements (the later 8 development plan requirements) for a proposed later 9 development plan for a lease.50 10 `53A General requirements 11 `(1) The proposed plan must provide for each of the following-- 12 (a) an overview of the activities proposed to be carried out 13 under the lease or proposed lease during all of its term; 14 (b) for each year of the plan period-- 15 (i) the nature and extent of activities proposed to be 16 carried out under the lease or proposed lease 17 during the year; and 18 (ii) where the activities are proposed to be carried out; 19 and 20 (iii) the estimated cost of the activities; 21 (c) for each natural underground reservoir in the area of the 22 lease of which the applicant is aware, each of the 23 following-- 24 50 For the requirements to lodge a proposed later development plan, see sections 40 (Lease to holder of authority to prospect), 45 (Entitlement to renewal of lease), 74Q (Obligation to lodge proposed later development plan) and 80T (Types of noncompliance action that may be taken).

 


 

s 34 79 s 34 Petroleum and Other Legislation Amendment Bill 2004 (i) the location and a verifiable estimate of the amount 1 of petroleum in the reservoir; 2 (ii) the standards and procedures used to make the 3 estimate; 4 (iii) the rate and amount of production proposed from 5 the reservoir; 6 (iv) approximately when the proposed production is to 7 start; 8 (v) a schedule for the proposed production during the 9 plan period; 10 (d) maps that show the matters mentioned in 11 paragraph (b)(i) and (ii) and (c)(i); 12 (e) any other information relevant to the development plan 13 criteria; 14 (f) reasons that the plan is considered appropriate; 15 (g) another matter prescribed under a regulation. 16 `(2) Also, the proposed plan must-- 17 (a) highlight any significant changes from the current 18 development plan for the lease; and 19 (b) if the current development plan for the lease has not 20 been complied with--state the details of, and the 21 reasons for, each noncompliance. 22 `(3) If the effect of the proposed plan is to significantly change an 23 activity provided for under the current development plan, the 24 proposed plan must also state reasons for the change. 25 `(4) Also, for a significant change that is a cessation or reduction 26 of petroleum production, the proposed plan must include an 27 evaluation of-- 28 (a) petroleum production potential in the area of the lease; 29 and 30 (b) market opportunities for petroleum production in the 31 area of the lease. 32 `(5) A regulation may impose requirements about the form of the 33 proposed plan. 34

 


 

s 34 80 s 34 Petroleum and Other Legislation Amendment Bill 2004 `(6) In this section-- 1 year, of the plan period, means-- 2 (a) the period starting on the day the plan period starts and 3 ending on the first anniversary of that day; and 4 (b) each subsequent period of 12 months or less during the 5 plan period, starting on each anniversary of that day and 6 ending on-- 7 (i) the next anniversary of that day; or 8 (ii) if the plan period ends before the next 9 anniversary--the day the plan period ends. 10 `53B Plan period 11 `(1) The proposed plan must state its period. 12 `(2) The period must not be longer than-- 13 (a) if the remaining term, or the renewed term, of the lease 14 is less than 5 years--the term of the lease; or 15 (b) if the remaining term, or the renewed term, of the lease 16 is 5 years or more--5 years from the start of the term. 17 `Subdivision 2 Approval of proposed later 18 development plans 19 `53C Application of sdiv 2 20 `This subdivision applies if under this Act, a proposed later 21 development plan is lodged for approval.51 22 `53D Lease taken to have development plan until decision 23 on whether to approve proposed development plan 24 `(1) This section applies until-- 25 51 See section 74Q (Obligation to lodge proposed later development plan)

 


 

s 34 81 s 34 Petroleum and Other Legislation Amendment Bill 2004 (a) if the proposed plan is approved--the holder is given 1 notice of the approval; or 2 (b) if approval of the proposed plan is refused--when the 3 refusal takes effect.52 4 `(2) Despite the ending of the plan period for the current 5 development plan for the lease-- 6 (a) the lease is taken to have a development plan; and 7 (b) the holder may carry out any authorised activity for the 8 lease. 9 `53E Deciding whether to approve proposed plan 10 `(1) The Minister may approve or refuse to approve the proposed 11 plan. 12 `(2) The matters that must be considered in deciding whether to 13 approve the proposed plan include each of the following-- 14 (a) the potential of the area of the lease for petroleum 15 production and related activities; 16 (b) the nature and extent of the activities; 17 (c) when and where the activities are proposed to be carried 18 out; 19 (d) whether petroleum production sought under the lease 20 will be optimised in the best interests of the State, 21 having regard to the public interest; 22 (e) the extent to which the current development plan for the 23 lease has been complied with; 24 (f) if the proposed plan provides for a significant change 25 that is a cessation or reduction of petroleum 26 production-- 27 (i) whether the cessation or reduction is reasonable; 28 and 29 52 For when the decision takes effect, see section 53G (Steps after, and taking effect of, decision).

 


 

s 34 82 s 34 Petroleum and Other Legislation Amendment Bill 2004 (ii) whether the lessee has taken all reasonable steps to 1 prevent the cessation or reduction. 2 `53F Power to require relinquishment 3 `(1) This section applies if the proposed plan provides for a 4 significant change that is a cessation or reduction of petroleum 5 production. 6 `(2) The Minister may approve the proposed plan, but-- 7 (a) decide (a deferral decision)-- 8 (i) to defer the taking of effect of the approval until 9 the lessee relinquishes, by a notice lodged at the 10 following office (the relevant office), a stated part 11 or percentage of the area of the lease on or before a 12 stated day-- 13 (A) the office of the department for lodging 14 relinquishment notices, as stated in a gazette 15 notice by the chief executive; 16 (B) if no office is gazetted under 17 subsubparagraph (A)--the office of the chief 18 executive; and 19 (ii) that the decision to approve the proposed plan is 20 replaced by a decision not to approve it if the 21 notice is not lodged on or before the stated day; or 22 (b) impose a condition on the lease requiring its holder to 23 relinquish, by a notice lodged at the relevant office, a 24 stated part or percentage of the area of the lease at stated 25 times or intervals. 26 `(3) The public interest must be considered before making a 27 deferral decision or imposing the condition. 28 `(4) A relinquishment under subsection (2)(a)(i) takes effect on the 29 day after the notice is lodged. 30 `53G Steps after, and taking effect of, decision 31 `(1) On approval of the proposed later development plan, the 32 holder must be given notice of the approval. 33

 


 

s 35 83 s 38 Petroleum and Other Legislation Amendment Bill 2004 `(2) The approval takes effect when the holder is given the notice 1 or, if the notice states a later day of effect, on that later day. 2 `(3) The holder must be given an information notice about-- 3 (a) a decision to refuse to approve the proposed plan; or 4 (b) a decision, under section 53F, to make a deferral 5 decision or impose a condition. 6 `(4) A refusal does not takes effect until the end the appeal period 7 for the decision to refuse.53'. 8 Clause 35 Omission of pt 7, hdg (Provisions applicable to permits 9 and leases) 10 Part 7, heading-- 11 omit. 12 Clause 36 Replacement of pt 7, div 1 (Signing applications) 13 Part 7, division 1-- 14 omit, insert-- 15 `Division 3 Miscellaneous provision'. 16 Clause 37 Omission of pt 7, div 2, hdg (Royalties) 17 Part 7, division 2, heading-- 18 omit. 19 Clause 38 Omission of ss 55 and 56 20 Sections 55 and 56-- 21 omit. 22 53 See sections 105 (Period to appeal) and 107 (Stay of operation of decision).

 


 

s 39 84 s 41 Petroleum and Other Legislation Amendment Bill 2004 Clause 39 Omission of ss 58­60 1 Section 58 to 60-- 2 omit. 3 Clause 40 Omission of pt 7, div 3, hdg (Assignments and other 4 dealings with permits and leases) 5 Part 7, division 3, heading-- 6 omit. 7 Clause 41 Replacement of ss 61­64 8 Sections 61 to 64-- 9 omit, insert-- 10 `61 Obstruction of 1923 Act petroleum tenure holder 11 `(1) A person must not, without reasonable excuse, obstruct a 12 1923 Act petroleum tenure holder from-- 13 (a) entering or crossing land to carry out an authorised 14 activity for the tenure if part 6H or 6I, to the extent it is 15 relevant,54 has been complied with in relation to the 16 entry; or 17 (b) carrying out an authorised activity for the tenure on the 18 land. 19 Maximum penalty--100 penalty units. 20 `(2) If a person has obstructed a 1923 Act petroleum tenure holder 21 from carrying out an activity mentioned in subsection (1) and 22 the holder decides to proceed with the carrying out of the 23 activity, the holder must warn the person that-- 24 (a) it is an offence to obstruct the holder unless the person 25 has a reasonable excuse; and 26 (b) the holder considers the person's conduct is an 27 obstruction. 28 `(3) In this section-- 29 54 Part 6H (Private land) or 6I (Public land)

 


 

s 42 85 s 46 Petroleum and Other Legislation Amendment Bill 2004 obstruct includes assault, hinder or resist and attempt or 1 threaten to assault, hinder or resist.'. 2 Clause 42 Amendment of s 65 (Reservations in favour of State) 3 (1) Section 65(1), `permit,'-- 4 omit. 5 (2) Section 65(1)(b), `permit or'-- 6 omit. 7 Clause 43 Omission of pt 7, div 4, hdg (Refinery and entry 8 permissions and pipeline licences) 9 Part 7, division 4, heading-- 10 omit. 11 Clause 44 Omission of ss 66­72 12 Sections 66 to 72-- 13 omit. 14 Clause 45 Amendment of s 73 (Recovery of amounts payable to the 15 State) 16 Section 73, `under this part'-- 17 omit, insert-- 18 `under this Act'. 19 Clause 46 Replacement of ss 74­82 20 Sections 74 to 82-- 21 omit, insert-- 22

 


 

s 46 86 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Part 6A Key mandatory conditions and 1 related provisions 2 `Division 1 Preliminary 3 `74 Operation of div 1 4 `This division provides for the key mandatory conditions for 5 1923 Act petroleum tenures. 6 7 Note-- 8 1. Parts 4, 6, 6B to 6K and 10 also impose mandatory conditions on 9 1923 Act petroleum tenures. 10 2. For what is a `mandatory condition', see the definition of that term 11 in section 2. `Division 2 Specific mandatory conditions for 12 authorities to prospect and related 13 provisions 14 `Subdivision 1 Standard relinquishment condition 15 and related provisions 16 17 Note-- 18 For an authority to prospect in force immediately before the 2004 Act 19 start day, see part 10, division 2.55 `74A Standard relinquishment condition 20 `(1) It is a condition (the relinquishment condition) of each 21 authority to prospect that its holder must relinquish part of its 22 area, as provided for under this subdivision-- 23 (a) on or before each of its relinquishment days; and 24 55 Part 10, division 2 (Relinquishment condition until first renewal after 2004 Act start day, and related provisions)

 


 

s 46 87 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) if section 74E(3)56 applies--on the day provided for 1 under that subsection; and 2 (c) if, under part 4, division 2, subdivision 3,57 the period of 3 the work program for the authority has been 4 extended--the day on which the extended period ends. 5 `(2) However, if, under section 25J(4),58 a relinquishment day for 6 the authority (the original day) is deferred for a stated period, 7 for the relinquishment condition-- 8 (a) the relinquishment that was required on or before the 9 original day is taken to have been deferred until the end 10 of the stated period; but 11 (b) the relinquishments required under the relinquishment 12 condition on any later relinquishment days for the 13 authority must be made as if the deferral has not been 14 granted. 15 `(3) A relinquishment required under the relinquishment 16 condition-- 17 (a) must be made by notice (the relinquishment notice) 18 lodged at-- 19 (i) the office of the department for lodging 20 relinquishment notices, as stated in a gazette notice 21 by the chief executive; or 22 (ii) if no office is gazetted under subparagraph (i)--the 23 office of the chief executive; and 24 (b) takes effect on the day after lodgment under 25 paragraph (a). 26 `(4) This section does not prevent the holder from relinquishing, 27 by relinquishment notice, more than the part provided for 28 under this subdivision. 29 56 Section 74E (Adjustments for sub-blocks that can not be counted) 57 Part 4, division 2, subdivision 3 (Amending work programs) 58 Section 25J (Deciding application)

 


 

s 46 88 s 46 Petroleum and Other Legislation Amendment Bill 2004 `74B Consequence of failure to comply with relinquishment 1 condition 2 `(1) If the holder does not comply with the relinquishment 3 condition the holder must be given a notice requiring the 4 holder to comply with the condition within 20 business days 5 after the giving of the notice. 6 `(2) If the holder does comply with the requirement, the authority 7 to prospect is cancelled. 8 `(3) However, the cancellation does not take effect until the holder 9 is given a notice stating that the authority to prospect is 10 cancelled because of the operation of subsection (2). 11 `74C Part usually required to be relinquished 12 `(1) This section is subject to section 74E.59 13 `(2) The relinquishment for each relinquishment day, and any 14 other day mentioned in section 74A(1)(b) or (c) that applies to 15 the authority, must be such that by that day at least 8.33% of 16 the original notional sub-blocks of the authority to prospect 17 have been relinquished for each year that has passed since the 18 authority originally took effect. 19 `(3) The sub-blocks required to be relinquished under this section 20 is the usual relinquishment. 21 `74D Sub-blocks that can not be counted towards 22 relinquishment 23 `(1) The following can not be counted as sub-blocks relinquished 24 for the relinquishment condition-- 25 (a) sub-blocks relinquished under a condition imposed 26 under section 25J(6);60 27 (b) sub-blocks in an area that, under section 20,61 has ceased 28 to be included in the area of an authority to prospect; 29 59 Section 74E (Adjustments for sub-blocks that can not be counted) 60 Section 25J (Deciding application). 61 Section 20 (Area of authority to prospect reduced on grant of lease)

 


 

s 46 89 s 46 Petroleum and Other Legislation Amendment Bill 2004 (c) sub-blocks the subject of a lease application or an 1 application for a 2004 Act lease; 2 (d) sub-blocks relinquished under a penalty relinquishment. 3 `(2) In this section-- 4 penalty relinquishment means a relinquishment that is-- 5 (a) made under section 74J or under a requirement under 6 section 80T(1)(b);62 and 7 (b) more than the sub-blocks required to be relinquished 8 under the relinquishment condition. 9 `74E Adjustments for sub-blocks that can not be counted 10 `(1) This section applies for a relinquishment day if, after taking 11 away all sub-blocks that, under section 74D, can not be 12 counted for the relinquishment condition, the balance of the 13 sub-blocks of the authority to prospect are less than the 14 sub-blocks required to be relinquished under the usual 15 relinquishment. 16 `(2) The relinquishment condition is taken to have been complied 17 with if the authority holder gives a relinquishment notice for 18 all of the balance. 19 `(3) However, if-- 20 (a) a sub-block not counted for the relinquishment 21 condition was the subject of a lease application; and 22 (b) the result of the application is that it is refused; 23 the authority holder must, within 20 business days after the 24 appeal period for the decision to refuse, give a relinquishment 25 notice for that sub-block. 26 `74F Relinquishment must be by blocks 27 `(1) A relinquishment under the relinquishment condition can only 28 be by blocks. 29 62 Sections 74J (Penalty relinquishment if work program not completed within extended period) and 80T (Types of noncompliance action that may be taken)

 


 

s 46 90 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) However, if a block contains an area that, under section 74D, 1 can not be counted as a relinquishment, subsection (1) is 2 complied with if all of the rest of the land within the block is 3 relinquished. 4 `74G Ending of authority to prospect if all of area 5 relinquished 6 `If all of the area of an authority to prospect is relinquished, 7 the authority ends. 8 `Subdivision 2 Work programs 9 `74H Requirement to have work program 10 `The holder of an authority to prospect must have a work 11 program for the authority. 12 13 Note-- 14 1. The only `work program' for an authority to prospect is its current 15 initial work program provided for under section 151 or 155 or its 16 later work program, as approved under part 4, division 2. See the 17 definition of that term in section 2. 18 2. For the requirements to lodge a proposed later work program see 19 sections 25M, 74K and 80T. 20 3. For approval of proposed later development plans see part 4, 21 division 2, subdivision 2.63 63 Sections 2 (Definitions), 151 (Unfinished authority to prospect applications for which a Commonwealth Native Title Act s 29 notice has been given) and 155 (Conditions of an authority to prospect about expenditure or work becomes its work program) Sections 25M (Requirements for making application), 74K (Obligation to lodge proposed later work program) and 80T (Types of noncompliance action that may be taken) Part 4, division 2, subdivision 2 (Approval of proposed later work programs)

 


 

s 46 91 s 46 Petroleum and Other Legislation Amendment Bill 2004 `74I Compliance with exploration activities in work program 1 `An authority to prospect holder must carry out the 2 exploration activities proposed in the work program. 3 `74J Penalty relinquishment if work program not completed 4 within extended period 5 `If-- 6 (a) under part 4, division 2, subdivision 3,64 the period of 7 the work program for an authority to prospect has been 8 extended; and 9 (b) the work program is not completed on or before the day 10 on which the extended period ends; 11 its holder must relinquish a part of the original notional 12 sub-blocks of the authority that corresponds to the amount of 13 the work under the work program that was not completed. 14 `74K Obligation to lodge proposed later work program 15 `(1) This section imposes an obligation on an authority to prospect 16 holder to lodge a proposed later work program for the 17 authority. 18 19 Note-- 20 1. For approval of the proposed program, see part 4, division 2, 21 subdivision 2. 22 2. If the holder wishes to renew the authority, a proposed later work 23 program must be included in the renewal application. See 24 section 25M(1).65 `(2) The obligation is complied with only if the proposed later 25 work program-- 26 (a) is lodged at-- 27 (i) the office of the department for lodging proposed 28 later work programs, as stated in a gazette notice 29 by the chief executive; 30 64 Part 4, division 2, subdivision 3 (Amending work programs) 65 Section 25M (Requirements for making application)

 


 

s 46 92 s 46 Petroleum and Other Legislation Amendment Bill 2004 (ii) if no office is gazetted under subparagraph (i)--the 1 office of the chief executive; and 2 (b) complies with the later work program requirements;66 3 and 4 (c) is accompanied by the relevant fee. 5 `(3) A proposed later work program must be lodged at least 20, but 6 no more than 60, business days before the end of the program 7 period for the current work program for the authority (the 8 current work program period). 9 `(4) However, if before the end of the current work program 10 period, a decision is made not to approve a proposed later 11 work program lodged under subsection (3), the holder may, 12 within the period, lodge another proposed later work program. 13 `(5) If the holder does not lodge any proposed later work program 14 before the end of the current plan period or if subsection (4) 15 applies and the holder does not lodge another proposed later 16 work program within the current work program period-- 17 (a) the holder must be given a notice requiring the holder to 18 lodge a proposed later work program for the authority 19 within 20 business days after the giving of the notice; 20 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, 24 means-- 25 (a) if the proposed program is lodged within the time 26 required under subsection (3)--the fee prescribed under 27 a regulation; or 28 (b) if the proposed program is lodged after the time required 29 under subsection (3)-- 30 (i) if it is lodged under subsection (4)--nil; or 31 66 See part 4, division 2, subdivision 1 (Requirements for proposed later work programs).

 


 

s 46 93 s 46 Petroleum and Other Legislation Amendment Bill 2004 (ii) if it is not lodged under subsection (4) and it is 1 lodged before the end of the current work program 2 period--an amount that is 10 times the prescribed 3 fee; or 4 (iii) if it is not lodged under subsection (4) and it is 5 lodged after the end of the current work program 6 period--an amount that is 20 times the prescribed 7 fee. 8 `74L Consequence of failure to comply with notice to lodge 9 proposed later work program 10 `(1) If an authority to prospect holder does not comply with a 11 requirement under section 74K(5)(a), the authority is 12 cancelled. 13 `(2) However, the cancellation does not take effect until the holder 14 is given a notice stating that the authority has been cancelled 15 because of the operation of subsection (1). 16 `Subdivision 3 Miscellaneous conditions 17 `74M Restriction on flaring or venting 18 `(1) An authority to prospect holder must not flare or vent 19 petroleum in a gaseous state produced under the authority 20 unless the flaring or venting is authorised under this section. 21 `(2) Flaring the gas is authorised if it is not commercially or 22 technically feasible to use it-- 23 (a) commercially under the authority; or 24 (b) for an authorised activity for the authority. 25 `(3) Venting the gas is authorised if-- 26 (a) it is not safe to use the gas for a purpose mentioned in 27 subsection (2)(a) or (b) or to flare it; or 28 (b) flaring it is not technically practicable. 29

 


 

s 46 94 s 46 Petroleum and Other Legislation Amendment Bill 2004 `74N Petroleum royalty and annual rent 1 `(1) From the 2004 Act start day, the holder must pay the State-- 2 (a) petroleum royalty as required under the 2004 Act, 3 chapter 6;67 and 4 (b) annual rent, as prescribed under a regulation. 5 `(2) The annual rent must be paid in the way, and on or before the 6 day, prescribed under a regulation under the 2004 Act. 7 `Division 3 Specific mandatory conditions for 8 leases and related provisions 9 `Subdivision 1 Development plans 10 `74O Requirement to have development plan 11 `A lessee must have a development plan for the lease. 12 13 Note-- 14 1. For what is the `development plan' for a lease, see the definition of 15 that term in section 2. 16 2. For the requirements to lodge a proposed later development plan 17 see sections 40, 45, 74Q and 80T. 18 3. For approval of proposed later development plans see part 6, 19 division 2, subdivision 3.68 `74P Compliance with development plan 20 `(1) A lessee must comply with the development plan for the 21 lease.69 22 67 2004 Act, chapter 6 (Petroleum royalty) 68 Sections 40 (Lease to holder of authority to prospect), 45 (Entitlement to renewal of lease), 74Q (Obligation to lodge proposed later development plan) and 80T (Types of noncompliance action that may be taken) Part 6, division 2, subdivision 3 (Approval of proposed later development plans) 69 See also section 53D (Lease taken to have development plan until decision on whether to approved proposed development plan).

 


 

s 46 95 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) However, subsection (1) does not apply to a failure to comply 1 with the plan that is an act or omission by the holder to ensure 2 compliance with an insufficiency of supply direction under 3 the Gas Supply Act 2003. 4 `74Q Obligation to lodge proposed later development plan 5 `(1) This section imposes an obligation on a lessee to lodge a 6 proposed later development plan for the lease. 7 8 Note-- 9 1. For approval of the proposed plan, see part 6, division 2, 10 subdivision 3.70 11 2. If the holder wishes to renew the lease, a proposed later 12 development plan must be included in the renewal application. See 13 section 25M.71 `(2) The obligation is complied with only if the proposed later 14 development plan-- 15 (a) is lodged at-- 16 (i) the office of the department for lodging proposed 17 later development plans, as stated in a gazette 18 notice by the chief executive; or 19 (ii) if no office is gazetted under subparagraph (i)--the 20 office of the chief executive; and 21 (b) complies with the later development plan requirements; 22 and 23 (c) is accompanied by the relevant fee. 24 `(3) A proposed later development plan must be lodged-- 25 (a) for a petroleum lease granted after the commencement 26 of this section--within 6 months after the grant; or 27 (b) otherwise-- 28 70 Part 6, division 2, subdivision 3 (Approval of proposed later development plans) 71 Section 25M (Requirements for making application)

 


 

s 46 96 s 46 Petroleum and Other Legislation Amendment Bill 2004 (i) at least 40, but no more than 80, business days 1 before the end of the plan period for its current 2 development plan (the current plan period); or 3 (ii) as soon as practicable after the holder proposes or 4 becomes aware of a significant change to the 5 nature and extent of an authorised activity that is 6 not already dealt with under the current 7 development plan for the lease. 8 `(4) However, if before the end of the current plan period, a 9 decision is made not to approve a proposed later development 10 plan lodged under subsection (3), the holder may, within the 11 period, lodge another proposed later development plan. 12 `(5) If the holder does not lodge any proposed later development 13 plan before the end of the current work program period or if 14 subsection (4) applies and the holder does not lodge another 15 proposed later work program within the current work program 16 period-- 17 (a) the holder must be given a notice requiring the holder to 18 lodge a proposed later development plan for the lease 19 within 20 business days after the giving of the notice; 20 and 21 (b) the holder must comply with the requirement. 22 `(6) In this section-- 23 relevant fee, for the lodgment of the proposed plan, means-- 24 (a) if the proposed plan is lodged within the time required 25 under subsection (3)--the fee prescribed under a 26 regulation; or 27 (b) if the proposed plan is lodged after the time required 28 under subsection (3) and-- 29 (i) if it is lodged under subsection (4)--nil; or 30 (ii) if it is not lodged under subsection (4) and it is 31 lodged before the end of the current plan 32 period--an amount that is 10 times the prescribed 33 fee; or 34

 


 

s 46 97 s 46 Petroleum and Other Legislation Amendment Bill 2004 (iii) it is not lodged under subsection (4) and it is 1 lodged after the end of the current plan period--an 2 amount that is 20 times the prescribed fee. 3 `74R Consequence of failure to comply with notice to lodge 4 proposed later development plan 5 `(1) If a lessee does not comply with a requirement under 6 section 74Q(5)(a), the lease is cancelled. 7 `(2) However, the cancellation does not take effect until the holder 8 is given a notice stating that the lease has been cancelled 9 because of the operation of subsection (1). 10 `Subdivision 2 Other mandatory conditions for 11 leases 12 `74S Restriction on flaring or venting 13 `(1) A lessee must not flare or vent petroleum in a gaseous state 14 produced under the lease unless the flaring or venting is 15 authorised under this section. 16 `(2) Flaring the gas is authorised if it is not commercially or 17 technically feasible to use it-- 18 (a) commercially under the lease; or 19 (b) for an authorised activity for the lease. 20 `(3) Venting the gas is authorised if-- 21 (a) it is not safe to use the gas for a purpose mentioned in 22 subsection (2)(a) or (b) or to flare it; or 23 (b) flaring it is not technically practicable. 24 `(4) Venting the incidental coal seam gas is also authorised if-- 25 (a) it is being used, or is proposed to be used, under a 26 greenhouse abatement scheme; and 27 (b) if subsection (1) were to apply, the direct or indirect 28 benefit the holder would otherwise obtain because of the 29 use of the gas under the scheme would be reduced. 30

 


 

s 46 98 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(5) In this section-- 1 greenhouse abatement scheme means-- 2 (a) the Electricity Supply Act 1995 (NSW), part 8A;72 or 3 (b) the Commonwealth's Greenhouse Gas Abatement 4 Program; or 5 (c) another scheme about the abatement of greenhouse 6 gases prescribed under a regulation. 7 `74T Obligation to commence production 8 `A lessee must start petroleum production under the lease on 9 or before the later of the following-- 10 (a) the end of 2 years after the lease takes effect; 11 (b) any production commencement day for the lease. 12 `Division 4 Provisions for all 1923 Act 13 petroleum tenures 14 `Subdivision 1 Preliminary 15 `74U Application of div 4 16 `This division applies to any 1923 Act petroleum tenure 17 holder. 18 72 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 46 99 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Subdivision 2 General mandatory conditions 1 `74V Obligation to consult with particular owners and 2 occupiers 3 `(1) The holder must consult, or use reasonable endeavours to 4 consult, with each owner and occupier of private or public 5 land on which authorised activities for the tenure are, or are 6 likely to be, carried out. 7 `(2) The consultation must be about the carrying out of authorised 8 activities for the tenure to the extent they relate to the owners 9 and occupiers. 10 `(3) The consultation must be carried out in the way and at the 11 times-- 12 (a) provided for in the tenure; or 13 (b) if the lease does not provide for how the consultation 14 must be carried out--approved by the Minister. 15 `(4) This section does not limit part 6H or 6I.73 16 `(5) A failure to comply with this section does not prevent 17 authorised activities for the tenure from being carried out. 18 `74W Civil penalty for nonpayment of annual rent 19 `(1) If the holder does not pay the annual rent as required under 20 section 46 or 74N, the holder must also pay the State a civil 21 penalty. 22 `(2) The amount of the penalty is 15% of the rent. 23 `(3) The penalty-- 24 (a) must be paid on the day after the last day for payment of 25 the rent; and 26 (b) is still payable even if the holder later pays the rent. 27 73 Part 6H (Private land) or 6I (Public land)

 


 

s 46 100 s 46 Petroleum and Other Legislation Amendment Bill 2004 `74X Obligation to prevent spread of declared pests 1 `(1) A 1923 Act petroleum tenure holder must take reasonable 2 steps to ensure the holder and anyone else acting for the 3 holder does not disperse the reproductive material of any 4 declared pest when-- 5 (a) entering or leaving land in the area of the authority; or 6 (b) carrying out an authorised activity for the authority. 7 `(2) However, subsection (1) does not apply if the dispersal is 8 authorised under the Land Protection (Pest and Stock Route 9 Management) Act 2002. 10 `(3) In this section-- 11 declared pest means any of the following-- 12 (a) a declared pest animal or declared pest plant under the 13 Land Protection (Pest and Stock Route Management) 14 Act 2002; 15 (b) an animal or plant declared under a relevant local law to 16 be-- 17 (i) a declared pest animal or declared pest plant; or 18 (ii) the equivalent (however called) of a declared pest 19 animal or declared pest plant for the local law. 20 relevant local law means a local law of a local government 21 the area of which includes the place at which the dispersal 22 takes place. 23 reproductive material, of an animal or plant, means any part 24 of the animal or plant that is capable of asexual or sexual 25 reproduction. 26 27 Examples of reproductive material of an animal-- 28 egg or part of an egg, semen 29 Examples of reproductive material of a plant-- 30 1. seed or part of a seed 31 2. bulb or part of a bulb, rhizome, stolon or tuber 32 3. stem or leaf cutting

 


 

s 46 101 s 46 Petroleum and Other Legislation Amendment Bill 2004 `74Y Requirement to consider using formed roads 1 `(1) This section applies if, under this Act, a 1923 Act petroleum 2 tenure holder proposes to enter any land. 3 `(2) The holder must consider using any formed road that is 4 available for the entry if using the road is practicable. 5 `(3) If the holder decides not to use the formed road, the holder 6 must take reasonable steps to consult with the owner of the 7 land before entering the land. 8 `(4) A failure to comply with this section does not invalidate or 9 otherwise affect the entry. 10 `74Z Obligation to comply with Act and prescribed 11 standards 12 `(1) The holder must-- 13 (a) comply with this Act; and 14 (b) in carrying out an authorised activity for the tenure, 15 comply with-- 16 (i) any standard that the tenure provides for the 17 activity; and 18 (ii) to the extent that the tenure does not provide a 19 standard for the activity--any standard prescribed 20 under a regulation for carrying out the activity. 21 `(2) In this section-- 22 standard includes an Australian Standard or a code or 23 protocol. 24 `75 Obligation to survey if Minister requires 25 `(1) The Minister may, by notice to the holder, require the holder 26 to survey or re-survey the area of the tenure within a stated 27 reasonable period. 28 `(2) The holder must cause the survey or re-survey to be carried 29 out by a person registered as a cadastral surveyor under the 30 Surveyors Act 2003. 31

 


 

s 46 102 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(3) The holder must pay any costs incurred in complying with the 1 notice. 2 `Division 5 Mandatory conditions and related 3 provisions for when 1923 Act 4 petroleum tenure ends or area 5 reduced 6 `75A Obligation to decommission pipelines 7 `(1) A 1923 Act petroleum tenure holder must, before the 8 decommissioning day, decommission, in the way prescribed 9 under a regulation, any pipeline in the area of the tenure. 10 Maximum penalty--1 000 penalty units.74 11 `(2) However, subsection (1)-- 12 (a) does not apply if the pipeline was constructed or 13 operated under another 1923 Act petroleum tenure; and 14 (b) ceases to apply if the operation of the pipeline becomes 15 an authorised activity for 1923 Act petroleum tenure or a 16 2004 Act petroleum tenure. 17 `(3) In this section-- 18 decommissioning day means the later of the following days-- 19 (a) the earlier of the following-- 20 (i) the day the tenure ends; 21 (ii) the day the land ceases to be in the area of the 22 tenure; 23 (b) if, before the day provided for under paragraph (a), the 24 Minister fixes a day--that day; 25 (c) if, before a day fixed under paragraph (b), the Minister 26 fixes a later day--that day. 27 74 See also section 79X(2) and (3) (General provision about ownership while tenure is in force for pipeline).

 


 

s 46 103 s 46 Petroleum and Other Legislation Amendment Bill 2004 `75B Obligation to remove equipment and improvements 1 `(1) This section applies for equipment or improvements in the 2 area of the tenure that are being, or have been, used for an 3 authorised activity for the tenure. 4 `(2) However, this section does not apply for-- 5 (a) a well, pipeline, water observation bore or water supply 6 bore;75or 7 (b) equipment or improvements on land that, under 8 section 20,76 ceases to be in the area of an authority to 9 prospect. 10 `(3) The holder of the tenure must, before the removal day, remove 11 the equipment or improvements from the land, unless the 12 owner of the land otherwise agrees. 13 Maximum penalty--1 000 penalty units. 14 `(4) To remove any doubt, it is declared that subsection (3) applies 15 even if the equipment or improvements are not owned by the 16 holder.77 17 `(5) In this section-- 18 equipment includes machinery and plant. 19 removal day means the later of the following days-- 20 (a) the earlier of the following-- 21 (i) the day the tenure ends; 22 (ii) the day the land ceases to be in the area of the 23 tenure; 24 (b) if, before the day provided for under paragraph (a), the 25 Minister fixes a day--that day; 26 75 For wells, water observation bores and supply bores, see part 6D (Wells, water supply bores and water observation bores). For pipelines, see sections 79X (General provision about ownership while tenure is in force for pipeline) and 75A (Obligation to decommission pipelines). 76 Section 20 (Area of authority to prospect reduced on grant of lease) 77 For ownership of the equipment or improvements see section 80B (Ownership of equipment and improvements).

 


 

s 46 104 s 46 Petroleum and Other Legislation Amendment Bill 2004 (c) if, before a day fixed under paragraph (b), the Minister 1 fixes a later day--that day. 2 `75C Authorisation to enter to facilitate compliance with 3 s 74X or this division 4 `(1) The Minister may, by notice, authorise a former holder of a 5 1923 Act petroleum tenure to enter any of the following land 6 to comply with, or remedy a contravention of, section 74X or 7 this division-- 8 (a) the land to which section 74X or this division applies 9 (primary land); 10 (b) any other land (secondary land) necessary or desirable 11 to cross for access to the primary land.78 12 `(2) Parts 6H (other than division 3), 6I and 6K79 and section 74X 13 and the definition conditions in section 2 apply to the former 14 holder for the purpose of the authorisation as if-- 15 (a) the tenure were still in force (the notional tenure); and 16 (b) the former holder is the holder of the notional tenure; 17 and 18 (c) the primary land and any secondary land are in the area 19 of the notional tenure; and 20 (d) the compliance or the remedying of the contravention 21 were authorised activities for the notional tenure. 22 `(3) However, the power under this section does not include the 23 power to enter a structure, or a part of a structure, used for 24 residential purposes without the consent of the occupier of the 25 structure or part of the structure. 26 `(4) If the former holder intends to enter the land and any occupier 27 of the land is present at the land, the former holder also must 28 show, or make a reasonable attempt to show, the occupier the 29 former holder's authorisation under this section. 30 78 See also section 80L (Power of authorised person to ensure compliance). 79 Parts 6H (Private land), 6I (Public land) and 6K (General compensation provisions)

 


 

s 46 105 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Part 6B Provisions relating to 1 authorised activities 2 `75D General restriction on carrying out authorised 3 activities 4 `The carrying out of an authorised activity for a 1923 Act 5 petroleum tenure is subject to-- 6 (a) the provisions of the tenure; and 7 (b) compliance with the tenure holder's rights and 8 obligations under this Act. 9 `75E Who may carry out authorised activity for holder 10 `(1) An authorised activity for a 1923 Act petroleum tenure may 11 be carried out for its holder by any of the following persons 12 acting within the scope of the person's authority from the 13 holder-- 14 (a) if the holder is a corporation--its officers and 15 employees; 16 (b) the holder's employees or partners who are individuals; 17 (c) agents of, or contractors for, the holder; 18 (d) officers and employees of, or agents of, or contractors 19 for, agents or contractors mentioned in paragraph (c). 20 21 Example-- 22 A lessee may also enter into a coordination arrangement under 23 which another party to the arrangement may carry out an 24 authorised activity for the lease. See the 2004 Act, 25 section 234(1). `(2) The authority may be express, or implied from-- 26 (a) the nature of the relationship between the person and the 27 holder; or 28 (b) the duties the person performs for the holder; or 29 (c) the duties a person mentioned in subsection (1) 30 customarily performs. 31

 


 

s 46 106 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Part 6C Commercial viability 1 assessment 2 `75F Minister's power to require commercial viability report 3 `(1) The Minister may, by notice (a report requirement), require a 4 1923 Act petroleum tenure holder to lodge at the relevant 5 office a written report (a commercial viability report) about 6 all or a stated part of the tenure's area if-- 7 (a) the holder is not producing petroleum in the area or 8 stated part; and 9 (b) the Minister is of the opinion that-- 10 (i) it may be commercially viable to produce 11 petroleum in the area or stated part; or 12 (ii) it may, within the next 15 years, be commercially 13 viable to produce petroleum in the area or stated 14 part. 15 `(2) The notice must state each of the following-- 16 (a) the Minister's opinion under subsection (1)(b)(i) or (ii); 17 (b) the facts and circumstances forming the basis for the 18 opinion; 19 (c) that the Minister requires the holder to give the Minister 20 a commercial viability report about the area; 21 (d) a reasonable period for giving the report. 22 `(3) In this section-- 23 relevant office means-- 24 (a) the office of the department for lodging the commercial 25 viability report, as stated in a gazette notice by the chief 26 executive; or 27 (b) if no office is gazetted under paragraph (a)--the office 28 of the chief executive. 29

 


 

s 46 107 s 46 Petroleum and Other Legislation Amendment Bill 2004 `75G Required content of commercial viability report 1 `(1) A commercial viability report must do all of the following-- 2 (a) identify each natural underground reservoir in the area 3 the subject of the relevant report requirement; 4 (b) give an estimate of the amount of petroleum in each 5 reservoir; 6 (c) state the standards and procedures used to make the 7 estimate; 8 (d) state whether, in the opinion of the relevant 1923 Act 9 petroleum tenure holder, it is commercially viable to 10 produce petroleum in the area; 11 (e) if the holder's opinion is that it is not commercially 12 viable to produce petroleum in the area--state whether, 13 in the holder's opinion, it will, within the next 15 years, 14 be commercially viable to produce petroleum in the 15 area; 16 (f) give data, and an analysis of the data, that supports each 17 opinion. 18 `(2) The supporting data and analysis must include-- 19 (a) technical data relating to the geology of, and natural 20 underground reservoirs in the area; and 21 (b) market and financial data relevant to the opinions. 22 `75H Minister's power to obtain independent viability 23 assessment 24 `(1) This section applies for a 1923 Act petroleum tenure, whether 25 or not its holder has lodged a commercial viability report 26 about the tenure. 27 `(2) The Minister may obtain an independent assessment of the 28 commercial viability of petroleum production in all or part of 29 the area of the tenure (an independent viability assessment). 30 `(3) However, before seeking the assessment, the Minister must 31 give the holder a notice stating the following-- 32 (a) that the Minister proposes to obtain the assessment; 33

 


 

s 46 108 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) the Minister's reasons for seeking the assessment; 1 (c) the likely costs of obtaining the assessment; 2 (d) whether the State will, under section 75I, seek to recover 3 the costs; 4 (e) that the holder may, within a stated reasonable period, 5 lodge submissions about the proposed assessment at-- 6 (i) the office of the department for lodging the 7 submissions, as stated in a gazette notice by the 8 chief executive; or 9 (ii) if no office is gazetted under subparagraph (i)--the 10 office of the chief executive. 11 `(4) Any submissions lodged by the holder within the stated period 12 must be considered. 13 `(5) The Minister must after receiving the assessment, give the 14 holder a copy. 15 `75I Costs of independent viability assessment 16 `If-- 17 (a) the Minister has incurred costs in obtaining, under 18 section 75H, an independent viability assessment about 19 a 1923 Act petroleum tenure; and 20 (b) the notice under section 75H about the assessment 21 stated that the State will seek to recover the costs; and 22 (c) the Minister has given the 1923 Act petroleum tenure 23 holder a notice requiring the holder to pay a reasonable 24 amount for the costs; 25 the holder must pay the State the reasonable amount for the 26 costs. 27

 


 

s 46 109 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Part 6D Wells, water supply bores and 1 water observation bores 2 `Division 1 Restrictions on drilling 3 `75J Requirements for drilling well 4 `(1) A person drilling a well must comply with any requirements 5 prescribed under a regulation that apply to the drilling of the 6 well. 7 Maximum penalty--300 penalty units. 8 `(2) The requirements may include provisions to prevent the 9 drilling adversely affecting the carrying out of future coal 10 mining under the Mineral Resources Act. 11 `75K Restriction on who may drill water observation bore or 12 water supply bore 13 `A person must not drill a water observation bore or water 14 supply bore unless-- 15 (a) the person is a licensed water bore driller; or 16 (b) the Water Act, section 816(2)(a) or (c) applies. 80 17 Maximum penalty--300 penalty units. 18 `Division 2 Converting well to water supply 19 bore 20 `75L Restrictions on making conversion 21 `A 1923 Act petroleum tenure holder may convert a well in the 22 area of the tenure to a water supply bore only if-- 23 (a) the well has been modified for the purpose of taking 24 water; and 25 80 Water Act, section 816 (Unauthorised water bore activities)

 


 

s 46 110 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) the modification was carried out by a licensed water 1 bore driller. 2 Maximum penalty--500 penalty units. 3 `75M Notice of conversion 4 `If a 1923 Act petroleum tenure holder converts a well to a 5 water supply bore, the holder must, within 10 business days 6 after the conversion, lodge a notice at the following office 7 stating the information prescribed under a regulation-- 8 (a) the office of the department for lodging the notice, as 9 stated in a gazette notice by the chief executive; 10 (b) if no office is gazetted under paragraph (a)--the office 11 of the chief executive. 12 Maximum penalty--50 penalty units. 13 `Division 3 Transfers of wells, water 14 observation bores and water supply 15 bores 16 `Subdivision 1 General provisions 17 `75N Operation of div 3 18 `(1) This division permits, in particular circumstances, the transfer 19 of the following in relation to a well, water observation bore 20 or water supply bore-- 21 (a) the control of, and responsibility for, the well or bore; 22 (b) the ownership of any works constructed in connection 23 with the well or bore. 24

 


 

s 46 111 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) In this division, a transfer of a well, water observation bore or 1 water supply bore is a reference to a transfer in relation to the 2 well or bore mentioned in subsection (1).81 3 `75O Transfer only permitted under div 3 4 `A purported transfer of a well, water observation bore or 5 water supply bore is of no effect unless-- 6 (a) the transfer is permitted under this division; and 7 (b) the requirements under this subdivision for making the 8 transfer have been complied with. 9 `75P Effect of transfer 10 `(1) If a well, water observation bore or water supply bore is 11 transferred under this division, any obligation the transferor 12 had under this Act or another law in relation to the well or 13 bore ceases. 14 `(2) However, if the transferor is someone other than the State, 15 subsection (1) does not apply to the Environmental Protection 16 Act.82 17 `Subdivision 2 Permitted transfers 18 `75Q Transfer of water observation bore or water supply 19 bore to landowner 20 `(1) A 1923 Act petroleum tenure holder may, by complying with 21 the requirements under subsection (2), transfer a water 22 observation bore or water supply bore in the area of the tenure 23 to the landowner. 24 `(2) For subsection (1), the requirements are that each of the 25 following have been lodged at the relevant office-- 26 81 For the ownership of works mentioned in subsection (1)(b) generally, see section 80B (Ownership of equipment and improvements). 82 For transfers by the State, see section 75W (Responsibility for well or bore after decommissioning).

 


 

s 46 112 s 46 Petroleum and Other Legislation Amendment Bill 2004 (a) a notice issued by the Water Act regulator stating-- 1 (i) that the construction of the bore was carried out 2 under the Water Act and any relevant water bore 3 driller's licence under that Act;83 and 4 (ii) whether or not the Water Act requires the owner to 5 hold a Water Act licence to take water from the 6 bore to be transferred; 7 (b) if the Water Act requires the owner to hold a Water Act 8 licence to take water from the bore to be transferred--a 9 copy of the licence; 10 (c) a notice in the approved form; 11 (d) the transfer fee prescribed under a regulation. 12 `(3) The approved form must require the signed consent of the 13 landowner to the transfer. 14 `(4) In this section-- 15 construction, for a water supply bore, includes any 16 modification under section 75L. 17 landowner means the owner of the land on which the bore is 18 located. 19 relevant office means-- 20 (a) the office of the department for lodging documents 21 mentioned in subsection (2) under this section, as stated 22 in a gazette notice by the chief executive; or 23 (b) if no office is gazetted under paragraph (a)--the office 24 of the chief executive. 25 `75R Transfer of well to holder of geothermal exploration 26 permit or mining tenement 27 `A 1923 Act petroleum tenure holder may transfer a well in 28 the area of the tenure to the holder of a geothermal exploration 29 permit or a mining tenement if-- 30 83 For relevant conditions, see the Water Regulation 2002, section 23(1) (Conditions of water bore driller's licence--Act s 302).

 


 

s 46 113 s 46 Petroleum and Other Legislation Amendment Bill 2004 (a) the well is in the area of the permit or tenement; and 1 (b) a notice in the approved form and the transfer fee 2 prescribed under a regulation have been lodged at-- 3 (i) the office of the department for lodging the notice, 4 as stated in a gazette notice by the chief executive; 5 or 6 (ii) if no office is gazetted under subparagraph (i)--the 7 office of the chief executive. 8 `75S Transfer of water observation bore to 1923 Act 9 petroleum tenure holder 10 `A 1923 Act petroleum tenure holder may transfer a water 11 observation bore in the area of the tenure to the holder of 12 another 1923 Act petroleum tenure or a 2004 Act petroleum 13 tenure if-- 14 (a) the bore is in the area of the other tenure; and 15 (b) a notice in the approved form and the transfer fee 16 prescribed under a regulation have been lodged at-- 17 (i) the office of the department for lodging the notice, 18 as stated in a gazette notice by the chief executive; 19 or 20 (ii) if no office is gazetted under subparagraph (i)--the 21 office of the chief executive. 22 `Subdivision 3 Notice of transfer 23 `75T Notice of transfer to Water Act regulator or Mineral 24 Resources Act chief executive 25 `(1) If a transfer is made under section 75Q the chief executive 26 must give the Water Act regulator notice of the transfer. 27 `(2) If a transfer is made under section 75R, the chief executive 28 must give the chief executive that administers the Mineral 29 Resources Act notice of the transfer. 30

 


 

s 46 114 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(3) A failure to comply with subsection (1) or (2) does not 1 invalidate or otherwise affect the transfer. 2 `Division 4 Decommissioning of wells, water 3 observation bores and water supply 4 bores 5 `75U Obligation to decommission 6 `(1) This section applies to a person (the responsible person) who 7 holds a 1923 Act petroleum tenure, for each well, water 8 observation bore or water supply bore in the area of the 9 tenure.84 10 `(2) The responsible person must ensure the well or bore is 11 decommissioned from use under this Act before-- 12 (a) the tenure ends; or 13 (b) the land on which the well or bore is located ceases to be 14 in the area of the tenure. 15 `(3) However subsection (2) does not apply for land that, under 16 section 20,85 ceases to be in the area of an authority to 17 prospect. 18 `(4) For subsection (2), the well or bore is decommissioned from 19 use under this Act only if-- 20 (a) it has been plugged and abandoned in the way 21 prescribed under a regulation; and 22 (b) the decommissioning complies with the Water Act, 23 sections 816 and 817;86 and 24 (c) the responsible person has lodged a notice about the 25 decommissioning.87 26 84 For when the holder owns the well or bore see division 3, subdivision 1 and section 80B (Ownership of equipment and improvements). 85 Section 20 (Area of authority to prospect reduced on grant of lease) 86 Water Act, sections 816 (Unauthorised water bore activities) and 817 (Contravening requirements for mining and petroleum drilling) 87 See also section 80L (Power of authorised person to ensure compliance).

 


 

s 46 115 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(5) The notice must be-- 1 (a) in the approved form; and 2 (b) lodged at-- 3 (i) the office of the department for lodging the notice, 4 as stated in a gazette notice by the chief executive; 5 or 6 (ii) if no office is gazetted under subparagraph (i)--the 7 office stated in the approved form; or 8 (iii) otherwise--the office of the chief executive. 9 `75V Right of entry to facilitate decommissioning 10 `(1) This section applies if-- 11 (a) a responsible person under section 75U has not carried 12 out decommissioning on land as required under that 13 section; and 14 (b) the relevant 1923 Act petroleum tenure has ended; or 15 (c) the land on which the well or bore is located is no longer 16 in the area of the tenure. 17 `(2) The responsible person may enter the following land to carry 18 out the decommissioning-- 19 (a) land (the primary land) on which the decommissioning 20 must be, or was required to be, carried out; 21 (b) any other land it is reasonably necessary to cross for 22 access to the primary land. 23 `(3) Parts 6H, 6I and 6K88 apply to the responsible person, in the 24 following way-- 25 (a) if the tenure has ended, as if-- 26 (i) it were still in force; and 27 (ii) the responsible person is its holder; 28 88 Parts 6H (Private land), 6I (Public land) and 6K (General compensation provisions)

 


 

s 46 116 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) as if the primary land and other land mentioned in 1 subsection (2)(b) is in the area of the tenure; 2 (c) as if the decommissioning is an authorised activity for 3 the tenure. 4 `75W Responsibility for well or bore after decommissioning 5 `(1) This section applies if a 1923 Act petroleum tenure holder 6 has, under section 75U,89 decommissioned a well, water 7 observation bore or water supply bore. 8 `(2) Despite the decommissioning, the holder continues to be 9 responsible under this Act for the well or bore until the earlier 10 of the following times (the relevant time)-- 11 (a) when the tenure ends; 12 (b) when the land on which the well or bore is located 13 ceased to be in the area of the tenure. 14 `(3) At the relevant time the well or bore is taken to have been 15 transferred to the State. 16 `(4) Subsection (3) applies despite-- 17 (a) the exploration bore being on or part of land owned by 18 someone else; or 19 (b) the sale or other disposal of the land. 20 `(5) After the relevant time, the State may transfer the well or 21 bore. 22 `(6) However-- 23 (a) the transfer from the State can only be to-- 24 (i) the owner of the land on which the well or bore is 25 located; or 26 (ii) the holder of a geothermal exploration permit or 27 mining tenement the area of which includes that 28 land; and 29 89 For ownership before decommissioning, see section 80B (Ownership of equipment and improvements).

 


 

s 46 117 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) the transfer from the State and the use of the well or 1 bore by the transferee is subject to this Act and any other 2 relevant Act or law. 3 `Part 6E Reporting 4 `Division 1 General reporting provisions90 5 `75X Requirement to report outcome of testing 6 `(1) This section applies if a 1923 Act petroleum tenure holder 7 carries out testing for petroleum from any well in the area of 8 the authority. 9 `(2) The holder must, within 40 business days after the testing 10 ends, lodge a report stating the outcome of the test at-- 11 (a) the office of the department for lodging testing outcome 12 reports, as stated in a gazette notice by the chief 13 executive; or 14 (b) if no office is gazetted under paragraph (a)--the office 15 of the chief executive. 16 `(3) The report must also state how much associated water was 17 taken during the testing. 18 `75Y Notice about discovery and commercial viability 19 `(1) If a 1923 Act petroleum tenure holder makes a petroleum 20 discovery, the holder must, within 5 business days, lodge a 21 notice of the discovery. 22 `(2) For subsection (1), if a 1923 Act petroleum tenure holder 23 explores or tests for coal seam gas-- 24 90 See also section 77O (Requirement for giving of copy of relinquishment report).

 


 

s 46 118 s 46 Petroleum and Other Legislation Amendment Bill 2004 (a) the discovery of the presence of coal seam gas in a coal 1 seam is not, of itself, a petroleum discovery; and 2 (b) the holder discovers coal seam gas only if it is actually 3 produced from a petroleum well used for the exploration 4 or testing. 5 `(3) A notice under subsection (1) must also state the geological 6 significance of the discovery. 7 `(4) The holder, must within the relevant period, lodge a notice 8 about whether or not petroleum production from the reservoir 9 the subject of the notice is commercially viable, or potentially 10 commercially viable, for the holder. 11 `(5) A notice under this section must be lodged at-- 12 (a) the office of the department for lodging the notice, as 13 stated in a gazette notice by the chief executive; or 14 (b) if no office is gazetted under paragraph (a)--the office 15 of the chief executive. 16 `(6) In this section-- 17 relevant period means-- 18 (a) the period of 45 business days after the discovery; or 19 (b) if the chief executive has, within the 45 business days, 20 agreed to a longer period--the longer period. 21 `75Z Relinquishment report 22 `(1) If part of the area of a 1923 Act petroleum tenure is 23 relinquished as required or authorised under this Act,91 its 24 holder must, within 6 months, lodge a report-- 25 (a) describing-- 26 (i) the authorised activities for the tenure carried out 27 in the part; and 28 (ii) the results of the activities; and 29 91 See part 6A, division 2 (Specific mandatory conditions for authorities to prospect and related provisions).

 


 

s 46 119 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) including other information prescribed under a 1 regulation. 2 Maximum penalty--200 penalty units. 3 `(2) The report must be lodged at-- 4 (a) the office of the department for lodging relinquishment 5 reports, as stated in a gazette notice by the chief 6 executive; or 7 (b) if no office is gazetted under paragraph (a)--the office 8 of the chief executive.92 9 `76 End of tenure report 10 `(1) If a 1923 Act petroleum tenure ends, the person who held the 11 tenure immediately before it ended must, within 6 months, 12 lodge a report-- 13 (a) including each of the following-- 14 (i) a summary of all authorised activities for the 15 tenure that have been carried out since it took 16 effect; 17 (ii) a summary of the results of the activities; 18 (iii) an index of all reports lodged, as required under 19 this Act, in relation to the activities; 20 (iv) a summary of all significant hazards created to 21 future safe and efficient mining that, under the 22 2004 Act section 690(1)(g) or 70693 or a regulation 23 under that Act, are required to be reported; 24 (v) for each hazard mentioned in the summary under 25 subparagraph (iv)--a reference to the report that 26 contains details of the hazard; 27 (vi) data on the amount and location of all petroleum 28 and water produced from the area of the tenure; 29 92 See also section 77O (Requirement for giving of copy of relinquishment report). 93 2004 Act, section 690 (Content requirements for safety reports) or 706 (Requirement to report prescribed incident)

 


 

s 46 120 s 46 Petroleum and Other Legislation Amendment Bill 2004 (vii) any data related to data mentioned in 1 subparagraph (vi) that may help the understanding 2 of the amount and location of any remaining 3 petroleum (including areas of `free gas') and water 4 from reservoirs produced; 5 (viii) any data required to be reported under this Act that 6 has not been previously reported; and 7 (b) stating any other information prescribed under a 8 regulation. 9 Maximum penalty--150 penalty units.94 10 `(2) A report under subsection (1) must be lodged at-- 11 (a) the office of the department for lodging the report, as 12 stated in a gazette notice by the chief executive; or 13 (b) if no office is gazetted under paragraph (a)--the office 14 of the chief executive. 15 `Division 2 Records and samples 16 `76A Requirement to keep records and samples 17 `(1) A 1923 Act petroleum tenure holder must, for the period and 18 in the way prescribed under a regulation, keep the records and 19 samples about authorised activities carried out under the 20 tenure as prescribed under a regulation. 21 Maximum penalty--500 penalty units. 22 `(2) For subsection (1), the prescribed records may be-- 23 (a) basic exploration data; or 24 25 Examples of basic exploration data-- 26 · seismic acquisition and processing reports 27 · information obtained from airborne geophysical surveying 94 See also section 76F(3) (Obligation to lodge annual reports).

 


 

s 46 121 s 46 Petroleum and Other Legislation Amendment Bill 2004 1 · other information about petroleum or other materials at or 2 below ground level 3 · a well completion report for an exploration or appraisal well (b) opinions, conclusions, technical consolidations and 4 advanced interpretations based on basic exploration 5 data. 6 `76B Requirement to lodge records and samples 7 `(1) A person who, under section 76A, is required to keep a record 8 or sample, must, for the services of the State, lodge a copy of 9 the record and a part of the sample within 6 months after the 10 earlier of the following (the required time)-- 11 (a) the day the record or sample was acquired or made; 12 (b) the day the relevant 1923 Act petroleum tenure ends. 13 Maximum penalty--500 penalty units. 14 `(2) The copy of the record and part of the sample must be lodged 15 at the following office (the relevant office)-- 16 (a) the office of the department for lodging the copy of the 17 record and part of the sample, as stated in a gazette 18 notice by the chief executive; 19 (b) if no office is gazetted under paragraph (a)--the office 20 of the chief executive. 21 `(3) If the chief executive gives the person a notice asking the 22 person for more of the sample, the person must lodge it at the 23 relevant office within the reasonable time stated in the notice 24 (also the required time) unless the holder has a reasonable 25 excuse. 26 Maximum penalty--500 penalty units. 27 `(4) The chief executive may extend the required time by up to 28 1 year if-- 29 (a) the person asks for the extension before the required 30 time; and 31 (b) the chief executive is satisfied the extension is 32 necessary. 33

 


 

s 46 122 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(5) However, the extension must not end later than-- 1 (a) for subsection (1)--6 months after the required time; or 2 (b) for subsection (2)--1 year after the required time. 3 `(6) Without limiting subsection (1), the use to which the State 4 may put the copy of the record and the part of the sample 5 include the building of a publicly available database to 6 facilitate petroleum exploration for the services of the State. 7 `Division 3 Releasing required information 8 `76C Meaning of required information 9 `Required information, for a 1923 Act petroleum tenure, is 10 information (in any form) about authorised activities carried 11 out under the tenure that the tenure holder has lodged under 12 this Act, including, for example-- 13 (a) a sample; and 14 (b) data and other matters mentioned in section 76G(2). 15 `76D Public release of required information 16 `(1) The mere fact of the existence of a 1923 Act petroleum tenure 17 is taken to be an authorisation from its holder to the chief 18 executive to do the following, after the end of any 19 confidentiality period prescribed under a regulation-- 20 (a) publish, in the way prescribed under a regulation, 21 required information for the tenure for public use, 22 including, for example, to support petroleum 23 exploration, production and development; 24 (b) on payment of a fee prescribed under a regulation, make 25 it available to any person. 26 `(2) Any confidentiality period prescribed under subsection (1) 27 ceases if the information is about an authorised activity 28 carried out solely in an area that is no longer in the area of the 29 tenure. 30 31 Example--

 


 

s 46 123 s 46 Petroleum and Other Legislation Amendment Bill 2004 1 The required information is a well completion report about a well drilled 2 on particular land in the area of an authority to prospect. Subsection (1) 3 ceases to apply if all of that land is relinquished under a relinquishment 4 condition. `(3) The authorisation is not affected by the ending of the tenure. 5 `76E Chief executive may use required information 6 `(1) The mere fact of the existence of a 1923 Act petroleum tenure 7 is taken to be an authorisation from its holder to the chief 8 executive to use required information for-- 9 (a) purposes reasonably related to this Act that are required 10 for the tenure; or 11 (b) the services of the State. 12 `(2) The authorisation is not affected by the ending of the tenure. 13 `76F Obligation to lodge annual reports 14 `(1) Each 1923 Act petroleum tenure holder must, within 2 months 15 after each of the tenure's anniversary days, lodge a report (an 16 annual report) for the 12 months that ended on the last 17 anniversary day that includes the information about the 18 authority prescribed under a regulation. 19 Maximum penalty--150 penalty units. 20 `(2) If a 1923 Act petroleum tenure ends, its former holder must, 21 within 2 months, lodge a report that includes the information 22 prescribed under subsection (1) for the period from the 23 authority's last anniversary day to when it ended. 24 Maximum penalty--150 penalty units. 25 `(3) A report under this section must be lodged at-- 26 (a) the office of the department for lodging annual reports, 27 as stated in a gazette notice by the chief executive; or 28 (b) if no office is gazetted under paragraph (a)--the office 29 of the chief executive. 30 `(4) In this section-- 31

 


 

s 46 124 s 46 Petroleum and Other Legislation Amendment Bill 2004 anniversary day, for a 1923 Act petroleum tenure, means each 1 day that is the anniversary of the day the authority took effect. 2 `76G Power to require information or reports about 3 authorised activities to be kept or given 4 `(1) A regulation, or the chief executive, may, for the services of 5 the State, require a 1923 Act petroleum tenure holder to-- 6 (a) keep stated information, or types of information, about 7 authorised activities carried out under the tenure; or 8 9 Example of a way of keeping information-- 10 in a stated digital format (b) lodge a notice giving stated information, or types of 11 information, or stated reports at stated times or intervals 12 about authorised activities carried out under the tenure. 13 14 Example of a stated time-- 15 for a report about a well, 6 months after its completion `(2) For subsection (1), the information or report required to be 16 given or kept may be-- 17 (a) basic exploration data; or 18 19 Examples of basic exploration data-- 20 · seismic acquisition, processing and interpretation reports 21 · information obtained from airborne geophysical surveying 22 · other information about petroleum or other materials at or 23 below ground level 24 · a well completion report for an exploration or appraisal well (b) opinions, conclusions, technical consolidations and 25 advanced interpretations based on basic exploration 26 data. 27 `(3) A notice under subsection (1)(b)-- 28 (a) may state-- 29 (i) a format required for giving the information; and 30 (ii) a degree of precision required for the giving of the 31 information; and 32

 


 

s 46 125 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) must be lodged at-- 1 (i) the office of the department for lodging reports 2 under this section, as stated in a gazette notice by 3 the chief executive; or 4 (ii) if no office is gazetted under subparagraph (i)--the 5 office of the chief executive. 6 `(4) A person of whom a requirement under subsection (1) has 7 been made must comply with the requirement. 8 Maximum penalty--100 penalty units. 9 `(5) In this section-- 10 information includes documents, records and samples. 11 `Part 6F Provisions for coal seam gas 12 `Division 1 Preliminary 13 `Subdivision 1 Introduction 14 `76H Main purposes of pt 6F 15 `The main purposes of this part are, in conjunction with the 16 2004 Act, chapter 3 and the Mineral Resources Act, 17 part 7AA,95 to-- 18 (a) clarify rights to explore for and produce coal seam gas; 19 and 20 (b) address issues arising for coal seam gas exploration and 21 production, and, in particular, issues arising when a 22 1923 Act petroleum tenure and a coal or oil shale 23 mining tenement are granted over the same area; and 24 95 2004 Act, chapter 3 and the Mineral Resources Act, part 7AA (Provisions for coal seam gas)

 


 

s 46 126 s 46 Petroleum and Other Legislation Amendment Bill 2004 (c) ensure petroleum exploration and production is-- 1 (i) carried out safely; and 2 (ii) does not compromise the safe and efficient mining 3 of coal seams or oil shale; and 4 (d) provide security of tenure to protect existing operations 5 and investments relating to coal, oil shale and 6 petroleum;96 and 7 (e) provide certainty of tenure for future investments 8 relating to coal, oil shale and petroleum; and 9 (f) optimise the development and use of the State's coal, oil 10 shale and petroleum resources to maximise the benefit 11 for all Queenslanders; and 12 (g) ensure petroleum exploration and production does not 13 compromise the ability to mine coal seams 14 economically in the future; and 15 (h) ensure, if it is commercially and technically feasible, the 16 grant of leases that may affect coal or oil shale mining, 17 or proposed coal or oil shale mining, optimises the 18 commercial use of coal, oil shale and petroleum 19 resources in a safe and efficient way. 20 `76I How main purposes are achieved 21 `(1) The main purposes of this part are achieved, in this part, the 22 2004 Act, chapter 3 or the Mineral Resources Act, part 7AA, 23 by-- 24 (a) providing for processes to decide the priority of 25 overlapping lease applications and coal or oil shale 26 mining tenement applications and potential 27 applications; and 28 (b) facilitating the obtaining of a lease over land in the area 29 of a coal mining lease or oil shale mining lease; and 30 96 For existing operations, see also the Mineral Resources Act, part 19, division 6 (Transitional provisions for Petroleum and Gas (Production and Safety) Act 2004).

 


 

s 46 127 s 46 Petroleum and Other Legislation Amendment Bill 2004 (c) imposing additional requirements for deciding the 1 overlapping applications; and 2 (d) imposing restrictions on the authorised activities for 3 particular 1923 Act petroleum tenures; and 4 (e) imposing additional-- 5 (i) requirements relating to development plans for 6 petroleum exploration or production under a lease; 7 and 8 (ii) conditions on authorities to prospect and leases; 9 and 10 (f) granting the following the right to apply for a lease-- 11 (i) particular coal or oil shale mining tenement 12 holders; 13 (ii) others who apply jointly with the holders. 14 `(2) The following are also relevant to the achievement of the 15 purposes-- 16 (a) the definition of petroleum in section 2-- 17 (b) the 2004 Act, sections 800(2) and 802(1)(c); 18 (c) the 2004 Act, chapter 2, part 8; 19 (d) the 2004 Act, chapter 9; 20 (e) the Mineral Resources Act, sections 3A, and 6, 21 part 7AA and part 19, division 6.97 22 `76J Relationship with other provisions of Act 23 `(1) Requirements and restrictions under this part apply as well as 24 any relevant requirements under another provision of this Act. 25 97 2004 Act, sections 800 (Restriction on petroleum tenure activities), 802 (Restriction on pipeline construction or operation), chapter 2, part 8 (Petroleum activities coordination) and chapter 9 (Safety) Mineral Resources Act, sections 3A (Relationship with petroleum legislation) and 6 (Meaning of mineral), part 7AA (Provisions for coal seam gas) and part 19, division 6 (Transitional provisions for Petroleum and Gas (Production and Safety) Act 2004)

 


 

s 46 128 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) If this part imposes a requirement for, or a restriction on, the 1 renewal of a 1923 Act petroleum tenure, the tenure can not be 2 renewed if the restriction applies or if the requirement has not 3 been complied with. 4 `(3) If this part imposes a requirement for, or a restriction on, the 5 carrying out of an authorised activity for a 1923 Act 6 petroleum tenure, despite the other provision, the activity is 7 not an authorised activity for the tenure while the restriction 8 applies or if the requirement has not been complied with. 9 `(4) If a provision of this part conflicts with the other provision, 10 the provision of this part prevails to the extent of the 11 inconsistency. 12 `Subdivision 2 Definitions for pt 6F 13 `76K What is coal seam gas and incidental coal seam gas 14 `(1) Coal seam gas is petroleum (in any state) occurring naturally 15 in association with coal or oil shale, or in strata associated 16 with coal or oil shale mining. 17 `(2) Incidental coal seam gas is incidental coal seam gas as 18 defined under the Mineral Resources Act, 19 section 318CM(2).98 20 `76L What is oil shale 21 `Oil shale is any shale or other rock (other than coal) from 22 which a gasification or retorting product may be extracted or 23 produced. 24 `76M What is a coal exploration tenement and a coal mining 25 lease 26 `(1) A coal exploration tenement is an exploration permit or 27 mineral development licence under the Mineral Resources Act 28 granted for coal. 29 98 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)

 


 

s 46 129 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) A coal mining lease is-- 1 (a) a mining lease for coal; or 2 (b) a special coal mining lease granted under any of the 3 following Acts, an agreement provided for under any of 4 the Acts or any amendment of an agreement provided 5 for under any of the Acts-- 6 (i) the Central Queensland Coal Associates 7 Agreement Act 1968; 8 (ii) the Thiess Peabody Mitsui Coal Pty. Ltd. 9 Agreements Acts 1962; or 10 (c) a specific purpose mining lease for a purpose associated 11 with, arising from or promoting the activity of coal 12 mining, whether or not it is also granted for a purpose 13 other than coal mining. 14 `(3) Subsections (1) and (2)(a) apply whether or not the lease, 15 permit or licence is also granted for another mineral. 16 `76N What is an oil shale exploration tenement and an 17 oil shale mining lease 18 `(1) An oil shale exploration tenement is an exploration permit or 19 mineral development licence granted for oil shale. 20 `(2) An oil shale mining lease is-- 21 (a) a mining lease for oil shale; or 22 (b) a specific purpose mining lease for a purpose associated 23 with, arising from or promoting the activity of oil shale 24 mining, whether or not it is also granted for a purpose 25 other than oil shale mining. 26 `(3) Subsections (1) and (2)(a) apply whether or not the lease, 27 permit or licence is also granted for another mineral. 28 `76O What is a coal or oil shale mining tenement 29 `A coal or oil shale mining tenement is-- 30 (a) a coal exploration tenement; or 31

 


 

s 46 130 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) an oil shale exploration tenement; or 1 (c) a coal mining lease or oil shale mining lease. 2 `Division 2 Additional provisions for authorities 3 to prospect 4 `Subdivision 1 Grant of authority to prospect in 5 area of coal or oil shale exploration 6 tenement 7 `76P Provisions for authority to prospect 8 `(1) The Mineral Resources Act does not limit or otherwise affect 9 the power under this Act to grant an authority to prospect over 10 land (the overlapping land) in the area of a coal or oil shale 11 exploration tenement. 12 `(2) However, an authorised activity for the authority to prospect 13 can not be carried out on the overlapping land if-- 14 (a) carrying it out adversely affects the carrying out of an 15 authorised activity for the coal or oil shale exploration 16 tenement; and 17 (b) the authorised activity for the coal or oil shale 18 exploration tenement has already started. 19 `Subdivision 2 Restriction on authorised activities 20 on coal mining lease or oil shale 21 mining lease land 22 `76Q Application of sdiv 2 23 `This subdivision applies if land in the area of a coal mining 24 lease or oil shale mining lease is in the area of an authority to 25 prospect. 26

 


 

s 46 131 s 46 Petroleum and Other Legislation Amendment Bill 2004 `76R Restriction 1 `(1) An authorised activity for the authority may be carried out on 2 the land only if-- 3 (a) the mining lease holder has agreed in writing to the 4 carrying out of the activity; and 5 (b) a copy of the agreement has been lodged at-- 6 (i) the office of the department for lodging the 7 agreement, as stated in a gazette notice by the chief 8 executive; or 9 (ii) if no office is gazetted under subparagraph (i)--the 10 office of the chief executive; and 11 (c) the agreement is still in force.99 12 `(2) Subsection (1) does not apply, or ceases to apply, if the same 13 person holds the authority and the mining lease. 14 `Subdivision 3 Condition 15 `76S Compliance with obligations under Mineral Resources 16 Act 17 `If an obligation under the Mineral Resources Act, 18 section 318AW or 318DB,100 applies to an authority to 19 prospect holder, it is a condition of the authority that the 20 holder must comply with the obligation. 21 99 See also the Mineral Resources Act, section 403 (Offences regarding land subject to mining claim or mining lease). 100 Mineral Resources Act, section 318AW (Authority to prospect holder's obligations) or 318DB (Authority to prospect holder's obligation to negotiate)

 


 

s 46 132 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 3 Renewal provisions 1 `Subdivision 1 Lease area overlapping with coal or 2 oil shale exploration tenement 3 `76T Application of sdiv 1 4 `(1) This subdivision applies if-- 5 (a) all or part of land in the area of a lease is in the area of a 6 coal or oil shale exploration tenement; and 7 (b) the lessee wishes to apply under section 45101 to renew 8 the lease. 9 `(2) However, this subdivision does not apply if-- 10 (a) the lessee is a holder of the tenement; or 11 (b) the application is to be made with the tenement holder's 12 written consent. 13 `76U Additional requirements for making application 14 `(1) The application must include the following-- 15 (a) a statement (a CSG statement) that complies with 16 section 76V; 17 (b) other information that addresses the matters mentioned 18 in subsection (2) (the CSG assessment criteria). 19 `(2) The CSG assessment criteria are-- 20 (a) the requirements of the 2004 Act, chapter 9;102 and 21 (b) the initial development plan requirements; and 22 (c) the legitimate business interests of the applicant and the 23 coal or oil shale exploration tenement holder (the 24 parties); and 25 101 Section 45 (Entitlement to renewal of lease) 102 2004 Act, chapter 9 (Safety)

 


 

s 46 133 s 46 Petroleum and Other Legislation Amendment Bill 2004 1 Examples of a party's legitimate business interests-- 2 · contractual obligations 3 · the effect on, and use of, existing infrastructure or mining or 4 production facilities 5 · exploration expenditure on relevant overlapping tenures (d) the effect of the renewed lease on the future 6 development of coal or oil shale resources from the 7 land, including for example, each of the following-- 8 (i) the proposed timing and rate of petroleum 9 production and the development of coal or oil shale 10 resources from the land; 11 (ii) the potential for the parties to make a coordination 12 arrangement about-- 13 (A) petroleum production under the renewed 14 lease; and 15 (B) coal or oil shale mining and any incidental 16 coal seam gas mining under any future 17 mining lease over the land; 18 (iii) the attempts required of the applicant under 19 section 76W(1)(b) and any changes of the type 20 mentioned in section 76W(1)(c); 21 (iv) the economic and technical viability of the 22 concurrent or coordinated petroleum production 23 and the development of any coal or oil shale 24 resources in the land; 25 (v) the extent, nature and value of petroleum 26 production and the development of any coal or oil 27 shale resources in the land; and 28 (e) having regard to the public interest in petroleum 29 production from, and the development of any coal or oil 30 shale resources in, the land. 31 `76V Content requirements for CSG statement 32 `(1) A CSG statement must-- 33 (a) assess-- 34

 


 

s 46 134 s 46 Petroleum and Other Legislation Amendment Bill 2004 (i) the likely effect of proposed petroleum production 1 on the future development of coal or oil shale 2 resources from the land; and 3 (ii) the technical and commercial feasibility of 4 coordinated petroleum production and coal or oil 5 shale mining from the land; and 6 (b) include a proposed safety management plan for all 7 operating plant, or proposed operating plant, for 8 proposed petroleum production under the lease that may 9 affect possible future safe and efficient mining under the 10 coal mining lease or oil shale mining lease. 11 `(2) The proposed safety management plan must-- 12 (a) comply with the requirements under the 2004 Act, 13 sections 388 and 675,103 for a safety management plan; 14 and 15 (b) include proposals for the minimisation of potential 16 adverse effects on possible future safe and efficient 17 mining under a future mining lease. 18 `76W Applicant's obligations 19 `(1) The applicant must-- 20 (a) within 10 business days after making the application, 21 give the coal or oil shale exploration tenement holder a 22 copy of the application, other than any part of the 23 application that relates to the capability criteria; and 24 (b) use reasonable attempts to-- 25 (i) consult with the tenement holder about the 26 applicant's proposed later development plan and 27 proposed safety management plan; and 28 (ii) make an appropriate arrangement with the 29 tenement holder about advanced testing carried 30 103 2004 Act, sections 388 (Additional content requirements) and 675 (Content requirements for safety management plans)

 


 

s 46 135 s 46 Petroleum and Other Legislation Amendment Bill 2004 out, or proposed to be carried out, by the tenement 1 holder (a testing arrangement);104 and 2 3 Example of advanced testing-- 4 bulk sampling (c) change the proposed plans to give effect to any 5 reasonable proposal by the tenement holder that will 6 optimise the safe and efficient production of-- 7 (i) petroleum under the renewed lease; and 8 (ii) coal or oil shale under any future mining lease over 9 the land; and 10 (d) within 4 months after the making of the application, 11 lodge a notice stating each of the following-- 12 (i) the details of the consultation; 13 (ii) the results of the consultation; 14 (iii) any comments the applicant wishes to make about 15 any submissions lodged by the tenement holder, 16 under section 77;105 17 (iv) any changes to the proposed later development 18 plan or proposed safety management plan; 19 (v) if a testing arrangement has been made--details of 20 the arrangement; 21 (vi) if a testing arrangement has not been 22 made--details of the attempts made to make a 23 testing arrangement; 24 (vii) the applicant's assessment of the potential for the 25 applicant and the tenement holder to make a 26 coordination arrangement about-- 27 (A) petroleum production under the renewed 28 lease; and 29 104 See also division 7 (Confidentiality of information). 105 Section 77 (Submissions by coal or oil shale exploration tenement holder)

 


 

s 46 136 s 46 Petroleum and Other Legislation Amendment Bill 2004 (B) coal or oil shale mining and any incidental 1 coal seam gas mining under any future 2 mining lease over the land. 3 `(2) However, the obligations under subsection (1)(b)(ii) and (c) 4 apply only to the extent the provisions or arrangement are 5 commercially and technically feasible for the applicant. 6 `(3) For subsection (1)(b)(ii), if the exploration tenement is an 7 exploration permit, it is appropriate for the agreement to give 8 the permit holder the right to carry out advanced testing to 9 satisfy the Minister under the Mineral Resources Act, 10 section 186(1)(b).106 11 `(4) However, subsection (3) does not require the applicant to 12 agree to testing having a duration of more than 12 months. 13 `(5) A notice under subsection (1)(d) must be lodged at-- 14 (a) the office of the department for lodging the notice, as 15 stated in a gazette notice by the chief executive; or 16 (b) if no office is gazetted under paragraph (a)--the office 17 of the chief executive. 18 `76X Minister may require further negotiation 19 `(1) The Minister may, after receiving the notice under 20 section 76W(1)(d), require the applicant to conduct 21 negotiations with the coal or oil shale exploration tenement 22 holder with a view to-- 23 (a) making a testing arrangement mentioned in 24 section 76W(1)(b)(ii); or 25 (b) making changes of a type mentioned in 26 section 76W(1)(c). 27 `(2) The applicant must use all reasonable attempts to comply with 28 the requirement. 29 106 See Mineral Resources Act, section 186(1)(b) (Minister may grant or reject application for mineral development licence).

 


 

s 46 137 s 46 Petroleum and Other Legislation Amendment Bill 2004 `76Y Consequence of applicant not complying with 1 obligations or requirement 2 `If the Minister is reasonably satisfied the applicant has not 3 complied with an obligation under section 76W or 76X, the 4 application may be refused.107 5 `76Z Obligations of coal or oil shale exploration tenement 6 holder 7 `The coal or oil shale exploration tenement holder must-- 8 (a) within 20 business days after receiving a copy of the 9 application, give the applicant basic information the 10 tenement holder has about the following that the 11 applicant may reasonably need to comply with 12 section 76W-- 13 (i) the type of exploration activities carried out, or 14 proposed to be carried out under the tenement; 15 (ii) coal or oil shale resources in the land; and 16 (b) after receiving a copy of the application, make 17 reasonable attempts to reach an agreement with the 18 applicant about the matters mentioned in 19 section 76W(1)(b) that provides the best resource use 20 outcome without significantly affecting the parties' 21 rights or interests.108 22 `77 Submissions by coal or oil shale exploration tenement 23 holder 24 `(1) The coal or oil shale exploration tenement holder may lodge 25 submissions about the application at-- 26 (a) the office of the department for lodging the submissions, 27 as stated in a gazette notice by the chief executive; or 28 (b) if no office is gazetted under paragraph (a)--the office 29 of the chief executive. 30 107 See also division 7 (Confidentiality of information). 108 See also division 7 (Confidentiality of information).

 


 

s 46 138 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) However, the submissions may be lodged only within 1 3 months after the holder is, under section 76W(1)(a),109 given 2 a copy of the application (the submission period). 3 `(3) The submissions may-- 4 (a) state that the holder does not object to the granting of 5 the renewed lease; and 6 (b) state that the holder does not wish any preference for the 7 future development of coal or oil shale from the land; 8 and 9 (c) include information about all or any of the following-- 10 (i) exploration carried out under the tenement; 11 (ii) the results of the exploration; 12 (iii) the prospects for future coal or oil shale mining or 13 incidental coal seam gas mining from the land; and 14 (d) include a proposal by the tenement holder for the 15 development of coal or oil shale in the land; and 16 (e) include information relevant to the CSG assessment 17 criteria;110 and 18 (f) include reasonable provisions for the safety 19 management plan for petroleum production under the 20 renewed lease.111 21 `(4) The holder must give the applicant a copy of the submissions. 22 `(5) In deciding the application, regard must be had to the 23 submissions. 24 109 Section 76W (Applicant's obligations) 110 See also division 7 (Confidentiality of information). 111 See also the 2004 Act, section 386 (Requirements for consultation with particular coal mining tenement holders).

 


 

s 46 139 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Subdivision 2 Renewal application by petroleum 1 lease holder 2 `77A Application of sdiv 2 3 `(1) This subdivision applies if-- 4 (a) all or part of land in the area of a lease under this Act is 5 in the area of a coal mining lease or oil shale mining 6 lease; and 7 (b) the lessee of the lease under this Act wishes to apply 8 under section 45112 to renew that lease. 9 `(2) However, this division does not apply if the lessee is the 10 mining lease holder. 11 `(3) If-- 12 (a) the land is also in the area of a coal or oil shale 13 exploration tenement; and 14 (b) the same person holds the mining lease and the 15 exploration tenement; 16 a reference in this division to the mining lease holder includes 17 a reference to the exploration tenement holder. 18 `77B Additional requirement for making application 19 `The application must include a CSG statement. 113 20 `77C Power to split application if it includes other land 21 `(1) This section applies if the application includes land (the other 22 part) not in the area of a coal or oil shale exploration 23 tenement. 24 112 Section 45 (Entitlement to renewal of lease) 113 See section 76V (Content requirements for CSG statement).

 


 

s 46 140 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) The Minister may decide to treat the application to the extent 1 it applies to the other part as if it were a separate renewal 2 application. 3 `(3) The separate application must be decided under section 45. 4 `77D Power to split application at applicant's request 5 `(1) The Minister may, at the applicant's request, decide to treat 6 the application as if it were separate renewal applications to 7 allow them to be decided under this subdivision or section 45, 8 as the Minister considers appropriate. 9 `(2) However, no step may be taken in relation to the deciding of 10 the applications until the relevant requirements for making 11 them have been complied with. 12 `77E Notice to coal mining lease holder or oil shale mining 13 lease holder 14 `The applicant must, within 10 business days after making the 15 application, give the coal mining lease holder or oil shale 16 mining lease holder a copy of the application, other than any 17 part of the application that relates to the capability criteria. 18 `77F Coal mining lease holder's or oil shale mining lease 19 holder's obligation to negotiate 20 `(1) The coal mining lease holder or oil shale mining lease holder 21 must, after receiving the copy of the application, make 22 reasonable attempts to reach a coordination arrangement with 23 the applicant about the following matters that provides the 24 best resource use outcome without significantly affecting the 25 parties' rights or interests-- 26 (a) petroleum production under the renewed lease; 27 (b) coal or oil shale mining and any incidental coal seam 28 gas mining under the mining lease.114 29 114 For the extent to which coal seam gas production is permitted under the coal mining lease or oil shale mining lease, see the Mineral Resources Act, part 7AA, division 8, subdivision 1 (Entitlement to coal seam gas).

 


 

s 46 141 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) However, the obligation under subsection (1) applies only to 1 the extent that a coordination arrangement is commercially 2 and technically feasible for the mining lease holder.115 3 `77G Additional requirements for grant 4 `(1) The application may be granted only if-- 5 (a) the applicant has negotiated, with the coal mining lease 6 holder or oil shale mining lease holder, a proposed 7 coordination arrangement (a relevant arrangement) 8 about the following matters-- 9 (i) petroleum production under the renewed lease; 10 (ii) coal or oil shale mining and any incidental coal 11 seam gas under the mining lease; and 12 (b) the Minister has approved the relevant arrangement; and 13 (c) the applicant has made a safety management plan for all 14 operating plant on, or proposed to be on, the area of the 15 renewed lease;116 and 16 (d) the mining lease holder has lodged a notice that the 17 holder has agreed to the plan. 18 `(2) The Minister may decide to refuse the application if-- 19 (a) the Minister is satisfied the applicant and the mining 20 lease holder have, as required under section 77F, made 21 reasonable attempts to reach a relevant arrangement; 22 and 23 (b) either-- 24 (i) the mining lease holder has lodged a notice stating 25 there are no reasonable prospects of a relevant 26 arrangement being made; or 27 (ii) a relevant arrangement has not been lodged for 28 approval by the Minister and the Minister 29 115 See also division 7 (Confidentiality of information). 116 See also the 2004 Act, section 386 (Requirements for consultation with particular coal mining tenement holders).

 


 

s 46 142 s 46 Petroleum and Other Legislation Amendment Bill 2004 considers the applicant and the mining lease holder 1 have had a reasonable opportunity to make a 2 relevant arrangement. 3 `(3) A notice under this section must be lodged at-- 4 (a) the office of the department for lodging the notice, as 5 stated in a gazette notice by the chief executive; or 6 (b) if no office is gazetted under paragraph (a)--the office 7 of the chief executive. 8 `Subdivision 3 Renewal application by coal mining 9 lease holder or oil shale mining 10 lease holder 11 `77H Application of sdiv 3 12 `This subdivision applies if a coal mining lease holder or oil 13 shale mining lease holder applies to renew a lease under this 14 Act for all or part of the land in the area of a coal mining lease 15 or oil shale mining lease that is not a specific purpose mining 16 lease. 17 `77I Additional requirement for making application 18 `The application must include a CSG statement.117 19 `77J Power to split application if it includes other land 20 `(1) This section applies if application includes land (the other 21 part) not in the area of a coal or oil shale mining tenement. 22 `(2) The Minister may decide to treat the application to the extent 23 it applies to the other part as if it were a separate renewal 24 application. 25 `(3) The separate application must be decided under section 45. 26 117 See section 76V (Content requirements for CSG statement).

 


 

s 46 143 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(4) Despite subsections (2) and (3) and any other provision of this 1 part, no step may be taken in relation to deciding the 2 applications until the relevant requirements for making them 3 have been complied with.118 4 `77K Power to split application at applicant's request 5 `(1) The Minister may, at the applicant's request, decide to treat 6 the application as if it were separate renewal applications to 7 allow them to be decided under this subdivision or 8 section 45,119 as the Minister considers appropriate. 9 `(2) However, no step may be taken in relation to the deciding of 10 the applications until the relevant requirements for making 11 them have been complied with. 12 `77L Right to grant if particular requirements met 13 `The Minister must grant the lease under this Act if-- 14 (a) the applicant is qualified under section 7AA;120 and 15 (b) the Minister is satisfied-- 16 (i) the requirements, under section 40,121 have been 17 complied with; and 18 (ii) the conditions of the coal or oil shale mining lease 19 have been substantially complied with. 20 21 Note-- 22 If the area of the renewed lease includes land that overlaps with 23 particular authorities to prospect, the authority holder's written 24 agreement is needed to carry out any authorised activity under the lease 25 other than an activity related to incidental coal seam gas. See the 2004 26 Act, section 364.122 118 For the applicants' power to amend, see section 121 (Amending applications). 119 Section 45 (Entitlement to renewal of lease) 120 Section 7AA (Qualification of 1923 Act petroleum tenure holders) 121 Section 40 (Lease to holder of authority to prospect) 122 2004 Act, section 364 (Restriction on authorised activities on overlapping ATP land)

 


 

s 46 144 s 46 Petroleum and Other Legislation Amendment Bill 2004 `77M Provisions of renewed lease 1 `(1) Section 45 applies to the granting of the lease under this Act 123 2 as if the application were an application under that section. 3 `(2) In deciding the provisions of the renewed lease, the following 4 matters must also be considered-- 5 (a) the conditions of the relevant mining lease; 6 (b) the development plan under the Mineral Resources Act 7 for the relevant mining lease; 8 (c) if the area of the lease will include land to which the 9 2004 Act, section 364 applies-- 10 (i) the legitimate business interests, rights and future 11 development proposals of the authority to prospect 12 holder; and 13 (ii) the likelihood of coordinated production of 14 petroleum in relation to the land being subject to 15 an agreement under the 2004 Act, section 364(2). 16 `(3) A condition may be imposed on the renewed lease that the 17 lessee is required, by a notice lodged at the following office, 18 to relinquish a stated part or percentage of its area at stated 19 times or intervals-- 20 (a) the office of the department for lodging the notice, as 21 stated in a gazette notice by the chief executive; 22 (b) if no office is gazetted under paragraph (a)--the office 23 of the chief executive.124 24 `(4) A condition mentioned in subsection (3) is a relinquishment 25 condition.125 26 123 Section 45 (Entitlement to renewal of lease) 124 See however section 77P (Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement). 125 See also section 77O (Requirement for giving of copy of relinquishment report).

 


 

s 46 145 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 4 Other additional provisions for 1 leases 2 `Subdivision 1 Conditions 3 `77N Compliance with obligation to negotiate with coal or 4 oil shale mining lease applicant 5 `If the obligation under the Mineral Resources Act, 6 section 318CA,126 applies to a lessee, it is a condition of the 7 lease that the lessee must comply with the obligation. 8 `77O Requirement for giving of copy of relinquishment 9 report 10 `(1) This section applies if-- 11 (a) a lessee has, under section 75Z,127 given a report about a 12 relinquishment of part of the area of the lease; and 13 (b) immediately before the relinquishment, the part 14 included land in the area of a coal or oil shale 15 exploration tenement. 16 `(2) The lessee must give a copy of the report to-- 17 (a) the coal or oil shale exploration tenement holder; and 18 (b) anyone else who has applied for a mining lease for the 19 part. 20 Maximum penalty--200 penalty units. 21 126 Mineral Resources Act, section 318CA (Petroleum lease holder's obligation to negotiate) 127 Section 75Z (Relinquishment report)

 


 

s 46 146 s 46 Petroleum and Other Legislation Amendment Bill 2004 `77P Cessation of relinquishment condition for area not 1 overlapping with coal or oil shale exploration 2 tenement 3 `If-- 4 (a) a lease contains a relinquishment condition; and 5 (b) all or part of the area of the lease ceases to be in the area 6 of a coal or oil shale exploration tenement (the relevant 7 land); 8 the condition ceases to apply for the relevant land. 9 `Subdivision 2 Amendment of relinquishment 10 condition by application 11 `77Q Application of sdiv 2 12 `This subdivision applies if a lease contains a relinquishment 13 condition and all or part of the area of the lease is in the area 14 of a coal or oil shale exploration tenement. 15 `77R Conditions for applying to amend 16 `(1) The lessee may apply for the Minister to amend the condition 17 if the applicant has, before making the application-- 18 (a) made reasonable attempts to consult with the coal or oil 19 shale exploration tenement holder about-- 20 (i) the proposed amendment; and 21 (ii) a proposed later development plan for the lease; 22 and 23 (b) changed the proposed amendment and the proposed 24 later development plan to give effect to any reasonable 25 proposal by the tenement holder that will optimise-- 26 (i) petroleum production under the amended lease; 27 and 28 (ii) coal, oil shale or incidental coal seam gas mining 29 under any future mining lease over the land. 30

 


 

s 46 147 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) However, subsection (1)(b) applies only to the extent the 1 provisions are commercially and technically feasible for the 2 applicant. 3 `77S Obligation of coal or oil shale exploration tenement 4 holder to negotiate 5 `The coal or oil shale exploration tenement holder must, if 6 asked by the lessee, make reasonable attempts to reach an 7 agreement with the lessee about the matters mentioned in 8 section 77R(1) that provides the best resource use outcome 9 without significantly affecting the parties' rights or 10 interests.128 11 `77T Requirements for making application 12 `(1) 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 the 16 application, as stated in a gazette notice by the 17 chief executive; or 18 (ii) if no office is gazetted under subparagraph (i)--the 19 office 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 lease 22 has been complied with; and 23 (d) if the development plan for the lease has not been 24 complied with--state details of, and the reasons for, 25 each noncompliance; and 26 (e) include a CSG statement; and 27 (f) include a proposed later development plan for the lease 28 as amended under section 77R; and 29 (g) include a statement about each of the following-- 30 128 See also division 7 (Confidentiality of information).

 


 

s 46 148 s 46 Petroleum and Other Legislation Amendment Bill 2004 (i) the details of the consultation carried out under 1 section 77R(1)(a); 2 (ii) the results of the consultation; 3 (iii) whether the proposed development plan includes 4 all provisions proposed by the coal or oil shale 5 exploration tenement holder under 6 section 77R(1)(b); 7 (iv) if the proposed development plan does not include 8 a provision proposed by the tenement holder--why 9 it was not included; 10 (v) the applicant's assessment of the potential for the 11 applicant and the tenement holder to make a 12 coordination arrangement about-- 13 (A) petroleum production under the amended 14 lease; and 15 (B) coal, oil shale or incidental coal seam gas 16 mining under any future mining lease over 17 the land that may be granted to the tenement 18 holder; and 19 (h) be accompanied by the fee prescribed under a 20 regulation. 21 `(2) However, the CSG statement need not include a proposed 22 safety management plan. 23 `77U Notice of application 24 `The applicant must immediately after making the application 25 give the coal or oil shale exploration tenement holder a copy 26 of the application. 27 `77V Submissions by coal or oil shale exploration tenement 28 holder 29 `(1) The coal or oil shale exploration tenement holder may lodge 30 submissions about the application at-- 31 (a) the office of the department for lodging the submissions, 32 as stated in a gazette notice by the chief executive; or 33

 


 

s 46 149 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) if no office is gazetted under paragraph (a)--the office 1 of the chief executive.129 2 `(2) However, the submissions may be lodged only within 3 20 business days after the holder is, under section 77U, given 4 a copy of the application. 5 `(3) The submissions may include-- 6 (a) information about all or any of the following-- 7 (i) exploration carried out under the tenement; 8 (ii) the results of the exploration; 9 (iii) the prospects for future coal or oil shale mining or 10 incidental coal seam gas mining from the land; or 11 (b) a proposal by the tenement holder for the development 12 of coal or oil shale in the land; or 13 (c) information relevant to the CSG assessment criteria. 14 `(4) The holder must give the applicant a copy of the submissions. 15 `(5) In deciding the application, regard must be had to the 16 submissions. 17 `77W Minister may require further negotiation 18 `(1) The Minister may, by notice, require the applicant to conduct 19 negotiations with the coal or oil shale exploration tenement 20 holder with a view to making changes of a type mentioned in 21 section 77R(1)(b).130 22 `(2) The applicant must use all reasonable attempts to comply with 23 the requirement. 24 `(3) If the Minister is reasonably satisfied the applicant has not 25 complied with the requirement the Minister may decide to 26 refuse the application. 27 129 See also division 7 (Confidentiality of information). 130 Section 77R (Conditions for applying to amend)

 


 

s 46 150 s 46 Petroleum and Other Legislation Amendment Bill 2004 `77X Deciding amendment application 1 `(1) Before deciding to grant the application, the Minister must 2 decide whether to approve the applicant's proposed later 3 development plan for the lease. 4 `(2) The application can not be granted unless the proposed plan 5 has been approved. 6 `(3) Part 6, division 2131 applies for deciding whether to approve 7 the proposed plan. 8 `(4) The matters that must be considered in deciding the 9 application include each of the following-- 10 (a) the CSG assessment criteria; 11 (b) whether the applicant has taken all reasonable steps to 12 comply with the relinquishment condition; 13 (c) the effect of any approval of later development plans for 14 the lease; 15 (d) any submissions under section 77V lodged within the 16 period mentioned in section 77V(2). 17 `Subdivision 3 Restriction on amendment of 18 conditions 19 `77Y Interests of relevant coal or oil shale mining 20 tenement holder to be considered 21 `A condition of a lease must not be amended unless the 22 interests of any relevant coal or oil shale mining tenement 23 holder have been considered. 24 131 Part 6, division 2 (Development plans) See also division 6 (Proposed later development plans).

 


 

s 46 151 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 5 Restrictions on particular transfers 1 `77Z Requirement for coordination arrangement to transfer 2 lease in tenure area of mining lease 3 `(1) This section applies, despite part 6N, if land is in the area of a 4 petroleum lease and a coal mining lease or oil shale mining 5 lease. 6 `(2) A transfer of the petroleum lease must not be approved under 7 part 6N unless the proposed transferee and the mining lease 8 holder are parties to a coordination arrangement about-- 9 (a) petroleum production under the lease; and 10 (b) coal or oil shale mining and any incidental coal seam 11 gas mining under the mining lease. 12 `Division 6 Proposed later development plans 13 `78 Additional criteria for deciding whether to approve 14 `(1) This section applies if-- 15 (a) the Minister is considering whether to approve a 16 proposed later development plan for a lease; and 17 (b) the area of the lease includes all or part of the area of a 18 coal mining tenement or oil shale mining tenement. 19 `(2) The matters that must be considered also include-- 20 (a) the CSG assessment criteria; and 21 (b) the effect of any approval of the proposed plan on any 22 relinquishment condition for the lease.132 23 132 See also section 53F (Power to require relinquishment).

 


 

s 46 152 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 7 Confidentiality of information 1 `78A Application of div 7 2 `(1) This division applies if a tenure holder or a person who has 3 applied for a tenure (the information-giver) gives another 4 tenure holder or a person who has applied for a tenure (the 5 recipient) information-- 6 (a) that this part requires the information-giver to give the 7 recipient, including, for example, information given to 8 comply with section 76Z(a);133 or 9 (b) for the purposes of this part. 10 `(2) However, this division applies subject to any agreement 11 between the information-giver and the recipient about the 12 information or its use. 13 `(3) In this section-- 14 information means information given verbally or in writing. 15 tenure means a 1923 Act petroleum tenure or a coal or oil 16 shale mining tenement. 17 `78B Confidentiality obligations 18 `(1) The recipient must not disclose the information to anyone 19 else, unless-- 20 (a) the information is publicly available; or 21 (b) the disclosure is-- 22 (i) made with the information-giver's consent; or 23 (ii) expressly permitted or required under this or 24 another Act; or 25 (iii) to the Minister. 26 `(2) The recipient may use the information only for the purpose for 27 which it is given. 28 133 Section 76Z (Obligations of coal or oil shale exploration tenement holder)

 


 

s 46 153 s 46 Petroleum and Other Legislation Amendment Bill 2004 `78C Civil remedies 1 `If the recipient does not comply with section 78B, a court of 2 competent jurisdiction may order the recipient to pay the 3 information-giver all or any of the following-- 4 (a) compensation for any loss the information-giver 5 incurred because of the failure to comply with the 6 section; 7 (b) the amount of any commercial gain the recipient made 8 because of the failure to comply with the section. 9 `Part 6G Security 10 `78D Operation and purpose of pt 6G 11 `(1) This part empowers the Minister to require, from time to time, 12 a 1923 Act petroleum tenure holder, or a person who has 13 applied for a 1923 Act petroleum tenure, to give the State 14 security for the tenure, or proposed tenure. 15 `(2) The security may be used to pay-- 16 (a) any liability under this Act that the State incurs because 17 of an act or omission of the holder; and 18 (b) unpaid petroleum royalty or annual rent payable by the 19 holder to the State; and 20 (c) other unpaid amounts payable under this Act by the 21 holder to the State, including, for example, any of the 22 following-- 23 (i) unpaid civil penalty; 24 (ii) unpaid interest on unpaid petroleum royalty or 25 annual rent; 26

 


 

s 46 154 s 46 Petroleum and Other Legislation Amendment Bill 2004 (iii) any debt payable by the holder under 1 section 101;134 and 2 (d) any compensation the State must pay under 3 section 80P135 because of the exercise, or purported 4 exercise, of a remedial power under section 80L136 in 5 relation to the tenure, whether or not the tenure has 6 ended. 7 `78E Power to require security for 1923 Act petroleum 8 tenure 9 `(1) The Minister may require a 1923 Act petroleum tenure holder, 10 or a person who has applied for a 1923 Act petroleum tenure, 11 to give the State security for the tenure, or proposed tenure. 12 `(2) The security must be-- 13 (a) in the form prescribed under a regulation; and 14 (b) of at least the amount prescribed under a regulation. 15 `(3) The requirement may be made at any time. 16 (4) However, the requirement does not take effect until the holder 17 or applicant is given-- 18 (a) for a requirement to give security in the form and 19 amount prescribed under subsection (2)--notice of the 20 requirement; or 21 (b) otherwise--an information notice about the decision to 22 make the requirement. 23 `78F Minister's power to require additional security 24 `(1) The Minister may, at any time, require a petroleum authority 25 holder to increase the amount of security given for the 26 authority. 27 134 Section 101 (Minister's power to ensure compliance by 1923 Act petroleum tenure holder) 135 Section 80P (Compensation for exercise of remedial power) 136 Section 80L (Power of authorised person to ensure compliance)

 


 

s 46 155 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) However-- 1 (a) if, because of an increase in the prescribed amount 2 under section 78E(2), the requirement is to increase the 3 total security required to no more than the increased 4 prescribed amount--the requirement must be made by 5 notice to the holder; or 6 (b) if the requirement is to increase the total security 7 required to more than the prescribed amount under 8 section 78E(2) when the requirement is made-- 9 (i) subsections (3) to (6) must be complied with 10 before making the requirement; and 11 (ii) the requirement does not take effect until the 12 holder is given an information notice about the 13 decision to make the requirement. 14 `(3) The Minister must give the holder notice-- 15 (a) stating the proposed increased amount of the security 16 for the tenure; and 17 (b) inviting the holder to lodge, within a stated reasonable 18 period, submissions about the proposed increased 19 amount at-- 20 (i) the office of the department for lodging the 21 submissions, as stated in a gazette notice by the 22 chief executive; or 23 (ii) if no office is gazetted under subparagraph (i)--the 24 office of the chief executive. 25 `(4) The stated period must end at least 20 business days after the 26 holder is given the notice. 27 `(5) Any submissions lodged by the holder within the stated period 28 must be considered before deciding to make the requirement. 29 `(6) In this section-- 30 security given, includes security given or increased because of 31 a requirement under subsection (1). 32

 


 

s 46 156 s 46 Petroleum and Other Legislation Amendment Bill 2004 `78G Interest on security 1 `The State may keep any interest that accrues on security 2 given under this part for a 1923 Act petroleum tenure. 3 `78H Power to use security 4 `The State may use security given under this part for a 1923 5 Act petroleum tenure, and any interest that accrues on the 6 security, to make a payment mentioned in section 78D(2)137 in 7 relation to the tenure. 8 `78I Replenishment of security 9 `(1) This section applies, if-- 10 (a) under section 78H, all or part of the security for a 1923 11 Act petroleum tenure has been used; and 12 (b) the tenure is still in force. 13 `(2) The Minister must give the tenure holder a notice-- 14 (a) stating how much of the security has been used; and 15 (b) directing the holder to, within 30 days after the giving of 16 the notice, replenish the security for the tenure up to the 17 higher of the following-- 18 (i) the amount prescribed under a regulation; 19 (ii) if the notice states that, under section 78E, 138 20 another amount is required--the other amount. 21 `78J Security not affected by change in holder 22 `(1) This section applies if security for a 1923 Act petroleum 23 tenure is given under this part for a 1923 Act petroleum tenure 24 that is still in force and there is a subsequent change in the 25 tenure holder. 26 137 Section 78D (Operation and purpose of pt 6G) 138 Section 78E (Power to require security for 1923 Act petroleum tenure)

 


 

s 46 157 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) Despite the subsequent change, the security, and any interest 1 that accrues on it, continues for the benefit of the State and 2 may be used under section 78H. 3 `(3) The tenure holder's name as stated in any instrument under 4 which the security was given is taken to have been changed to 5 reflect the subsequent change. 6 `(4) If the security is in the form of money, until the security is 7 replaced or refunded it continues for the holder from time to 8 time of the tenure. 9 `78K Retention of security after 1923 Act petroleum tenure 10 ends 11 `(1) Security, or part of security, given for a 1923 Act petroleum 12 tenure may be kept for 1 year after the tenure has ended. 13 `(2) Also, if a claim made for the use of the security has not been 14 assessed, an appropriate amount of the security to meet the 15 claim may be kept until the claim has been assessed. 16 `Part 6H Private land 17 `Division 1 Preliminary 18 `78L Application of pt 6H 19 `This part applies for a 1923 Act petroleum tenure in relation 20 to all private land unless-- 21 (a) the tenure holder owns the land; or 22 (b) the tenure holder has the right, other than under this Act, 23 to enter the land to carry out authorised activities for the 24 tenure. 25

 


 

s 46 158 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 2 Requirement for entry notice for 1 entry to private land in area of 1923 2 Act petroleum tenure 3 `78M Requirement for entry notice to carry out authorised 4 activities 5 `(1) A person must not enter private land to carry out an authorised 6 activity for a 1923 Act petroleum tenure unless-- 7 (a) the tenure holder has, at least 10 business days before 8 the entry, given each owner and occupier of the land 9 notice under this part (an entry notice) of the proposed 10 entry; or 11 (b) the entry is needed to preserve life or property because 12 of a dangerous situation or emergency that exists, or 13 may exist; or 14 (c) each owner and occupier of the land has agreed that an 15 entry notice is not required. 16 Maximum penalty--100 penalty units. 17 `(2) If a person proposes to enter the land under subsection (1)(b), 18 the person must, if practicable, notify each owner and 19 occupier of the land orally before entering the land. 20 `(3) An agreement under subsection (1)(c) is a waiver of entry 21 notice. 22 23 Note-- 24 Section 79U also contains preconditions for entry to private land to 25 carry out authorised activities for a 1923 Act petroleum tenure.139 `78N Waiver of entry notice 26 `(1) A waiver of entry notice-- 27 (a) may be given only by signed writing; and 28 (b) must state each of the following-- 29 139 Section 79U (Compensation to be addressed before entry to private land)

 


 

s 46 159 s 46 Petroleum and Other Legislation Amendment Bill 2004 (i) that the owner or occupier has been told they are 1 not required to agree to the waiver of entry notice; 2 (ii) the authorised activities proposed to be carried out 3 on the land; 4 (iii) the period during which the land will be entered; 5 (iv) when and where the activities are proposed to be 6 carried out. 7 `(2) The owner or occupier can not withdraw the waiver of entry 8 notice during the period. 9 `(3) The waiver of entry notice ceases to have effect at the end of 10 the period. 11 `78O Required contents of entry notice 12 `(1) An entry notice must state each of the following-- 13 (a) the land proposed to be entered; 14 (b) the period during which the land will be entered (the 15 entry period); 16 (c) the activities proposed to be carried out on the land; 17 (d) when and where the activities are proposed to be carried 18 out; 19 (e) contact details for-- 20 (i) the relevant 1923 Act petroleum tenure holder; or 21 (ii) another person the holder has authorised to discuss 22 the matters stated in the notice. 23 `(2) The entry period must not be longer than-- 24 (a) for an authority to prospect--6 months; or 25 (b) for a lease--1 year. 26 `(3) However, the entry period may be longer if the person to 27 whom the notice is required to be given agrees in writing. 28 `(4) Subject to subsections (2) and (3), an entry notice given to 29 1 owner or occupier of the land may state a different entry 30

 


 

s 46 160 s 46 Petroleum and Other Legislation Amendment Bill 2004 period from an entry notice given to another owner or 1 occupier of the land. 2 `(5) If a proposed activity is not likely to significantly disrupt 3 activities the occupier of the land ordinarily carries out on the 4 land, the entry notice may comply with subsection (1)(c) 5 and (d) by generally describing the nature and extent of the 6 activity. 7 `(6) The entry notice must include, or be accompanied by, an 8 information statement in the approved form about the rights 9 and obligations of holders, owners and occupiers relating to 10 the entry of land under a 1923 Act petroleum tenure. 11 `78P Giving entry notice by publication 12 `(1) The chief executive may approve a 1923 Act petroleum tenure 13 holder giving an entry notice by publishing it in a stated way. 14 `(2) The publication may relate to more than 1 entry notice. 15 `(3) The chief executive may give the approval only if satisfied the 16 publication is reasonably likely to adequately inform the 17 person to whom the notice is required to be given of the 18 proposed entry at least 10 business days before the entry is to 19 happen. 20 `(4) If the chief executive gives the approval, the entry notice may, 21 instead of complying with section 78O(6), state where a copy 22 of the information statement mentioned in that subsection 23 may be obtained or inspected, free of charge. 24 `Division 3 Requirement for further notice 25 before carrying out authorised 26 activities on private land 27 `78Q Application of div 3 28 `(1) This division applies if a 1923 Act petroleum tenure holder 29 proposes to-- 30 (a) first enter private land to carry out authorised activities 31 for the tenure; or 32

 


 

s 46 161 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) allow someone else for the holder to first enter private 1 land to carry out authorised activities for the tenure. 2 `(2) This division applies whether or not an entry notice has been 3 given in relation to the proposed entry. 4 `78R Requirement to give further notice 5 `(1) The 1923 Act petroleum tenure holder must give each owner 6 and occupier of the land notice-- 7 (a) of the proposed entry; and 8 (b) of, accurately, when and where the authorised activities 9 are proposed to be carried out. 10 `(2) The notice must be given-- 11 (a) generally--at least 2 business days before the proposed 12 entry; or 13 (b) if the holder and each owner and occupier of the land 14 have agreed to a longer or shorter period for giving the 15 notice--within the longer or shorter period. 16 `(3) The notice may be written or verbal and may be given in any 17 way, including, for example, in person, by e-mail, facsimile 18 transmission, letter or a hand written note. 19 `78S Failure to give further notice 20 `(1) The 1923 Act petroleum tenure holder must comply with 21 section 78R. 22 Maximum penalty--50 penalty units. 23 `(2) However, a failure to comply with section 78R does not 24 prevent the authorised activities from being carried out on the 25 land. 26

 


 

s 46 162 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 4 Provisions for dealings or change in 1 ownership or occupancy 2 `78T Entry notice or waiver of entry notice not affected by 3 permitted dealing 4 `A permitted dealing with a 1923 Act petroleum tenure does 5 not affect an entry notice or waiver of entry notice given or 6 made in relation to the tenure. 7 `78U Change in ownership or occupancy 8 `(1) If, after the giving of an entry notice, the ownership or 9 occupancy of the relevant land changes-- 10 (a) the holder of the 1923 Act petroleum tenure for which 11 the entry notice was given is taken to have given that 12 notice to each new owner or occupier of the land; and 13 (b) the requirement under section 78M(1)(a)140 to give the 14 notice at least 10 business days before entry, does not 15 apply for the new owner or occupier for the entry period 16 stated in the notice. 17 `(2) If, after the giving of a waiver of entry notice, the ownership 18 or occupancy of the relevant land changes, each new owner or 19 occupier of the land is taken to have given that waiver of entry 20 notice. 21 `(3) If the relevant 1923 Act petroleum tenure holder becomes 22 aware of a new owner or occupier mentioned in subsection (1) 23 or (2), the holder must, within 15 business days, give the new 24 owner or occupier a copy of the entry notice or waiver of entry 25 notice. 26 `(4) If the holder does not comply with subsection (3), 27 subsections (1) and (2) cease to apply for the entry notice or 28 waiver of entry notice. 29 140 Section 78M (Requirement for entry notice to carry out authorised activities)

 


 

s 46 163 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 5 Periodic notice after entry of land 1 `78V Notice to owners and occupiers 2 `(1) This section applies if private land has been entered to carry 3 out authorised activities for a 1923 Act petroleum tenure. 4 `(2) The tenure holder must, within 3 months after the end of the 5 period under subsection (3), (4) or (5), give each owner and 6 occupier of the land a notice stating-- 7 (a) what activities were carried out on the land during that 8 period, and where they were carried out; or 9 (b) if no activities were carried out on the land during the 10 period--that no activities were carried out on the land 11 during that period. 12 `(3) If an entry notice was given for the entry to all owners or 13 occupier of the land, the period for subsection (2) is the period 14 stated in the entry notice. 15 `(4) If all owners or occupiers of the land gave a waiver of entry 16 notice for the entry, the period for subsection (2) is the longer 17 of following periods after the giving of the waiver of entry 18 notice-- 19 (a) either-- 20 (i) for an authority to prospect--6 months; or 21 (ii) for a lease--1 year; 22 (b) if, within the period under paragraph (a), each owner or 23 occupier of the land consented to a longer period--the 24 longer period. 25 `(5) If an entry notice for the entry was given to some of the 26 owners or occupiers and the rest of the owners or occupiers 27 gave a waiver of entry notice for the entry, the period for 28 subsection (2) is the longer of the periods under 29 subsections (3) or (4). 30

 


 

s 46 164 s 46 Petroleum and Other Legislation Amendment Bill 2004 `Division 6 Access to carry out rehabilitation or 1 environmental management 2 `78W Right of access for authorised activities includes 3 access for rehabilitation and environmental 4 management 5 `If, under this part, a 1923 Act petroleum tenure holder has the 6 right to enter private land to carry out authorised activities for 7 the tenure, the right includes the right to enter the land to carry 8 out rehabilitation or environmental management required of 9 the holder under any relevant environmental requirement 10 under the Environmental Protection Act. 11 `Part 6I Public land141 12 `Division 1 Public roads 13 `Subdivision 1 Preliminary 14 `78X Significant projects excluded from div 1 15 `(1) This division does not apply for a 1923 Act petroleum tenure 16 that is, or is included in, a project declared under the State 17 Development and Public Works Organisation Act 1971, 18 section 26, to be a significant project. 19 `(2) Subsection (1) does not limit or otherwise affect conditions 20 the Coordinator-General may, under the State Development 21 and Public Works Organisation Act 1971, part 4, division 7,142 22 recommend for the tenure. 23 141 See however section 165 (Exclusion of pt 6I, div 1 for continuance of particular existing road uses). 142 State Development and Public Works Organisation Act 1971, part 4, division 7 (Relationship with other legislation)

 


 

s 46 165 s 46 Petroleum and Other Legislation Amendment Bill 2004 `78Y What is a notifiable road use 1 `(1) A notifiable road use, for a 1923 Act petroleum tenure, is-- 2 (a) the use of a public road in the area of the tenure for 3 transport relating to a seismic survey or drilling activity; 4 or 5 (b) the use of a public road at more than the threshold rate if 6 the haulage relates to-- 7 (i) the transportation of petroleum produced or 8 processed in the area of the tenure; or 9 (ii) the construction of a pipeline. 10 `(2) Subsection (1)(b) applies even if the road is not on land in the 11 area of the tenure. 12 `(3) In this section-- 13 threshold rate means-- 14 (a) for a State-controlled road--50 000 t a year; or 15 (b) for another public road--10 000 t a year. 16 `Subdivision 2 Notifiable road uses 17 `78Z Notice of notifiable road use 18 `(1) It is a condition of each 1923 Act petroleum tenure that its 19 holder must not use a public road for a notifiable road use 20 unless the holder has given the public road authority for the 21 road notice that the holder proposes to carry out the use.143 22 `(2) The notice must-- 23 (a) be given-- 24 (i) at least 10 business days before the use starts; or 25 (ii) within a shorter period agreed to by the public road 26 authority in writing; and 27 143 See also section 79G (Compensation to be addressed before carrying out notifiable road use).

 


 

s 46 166 s 46 Petroleum and Other Legislation Amendment Bill 2004 (b) state each of the following-- 1 (i) the public road proposed to be used; 2 (ii) the type of haulage under the use; 3 4 Examples of type of haulage-- 5 · vehicle type 6 · material hauled (iii) the total weight of material proposed to be hauled; 7 (iv) when the use is proposed to start and end; 8 (v) the frequency of vehicle movements; 9 (vi) contact details for the holder or someone else the 10 holder has authorised to discuss the matters stated 11 in the notice. 12 `79 Directions about notifiable road use 13 `(1) The public road authority for a public road may, by notice, 14 give a 1923 Act petroleum tenure holder a direction (a road 15 use direction) about the way the holder may use the road for 16 notifiable road uses being carried out, or proposed to be 17 carried out, by the holder. 18 `(2) The direction must-- 19 (a) be reasonable; and 20 (b) only be about-- 21 (i) preserving the condition of the road; or 22 (ii) the safety of road-users or the public; and 23 (c) be accompanied by, or include, an information notice 24 about the decision to give the direction. 25 26 Examples of what a direction may be about-- 27 · when the road may be used 28 · the route for the movement of heavy vehicles 29 · safety precautions the holder must take `(3) The direction may also require the holder to-- 30

 


 

s 46 167 s 46 Petroleum and Other Legislation Amendment Bill 2004 (a) carry out an assessment of the impacts likely to arise 1 from the notifiable road use the subject of the notice; 2 and 3 (b) consult with the public road authority in carrying out the 4 assessment. 5 `(4) However-- 6 (a) an assessment can not be required if the notifiable road 7 use is transportation relating to a seismic survey or 8 drilling activity; and 9 (b) the public road authority can not require an assessment 10 of an impact to the extent it has already been assessed 11 under an EIS under the Environmental Protection Act, 12 or a similar document under another Act. 13 `79A Obligation to comply with road use directions 14 `It is a condition of each 1923 Act petroleum tenure that its 15 holder must comply with any road use direction given to its 16 holder relating to the tenure, unless the holder has a 17 reasonable excuse. 18 `Subdivision 3 Compensation for notifiable road 19 uses 20 `79B Liability to compensate public road authority 21 `(1) The holder of each 1923 Act petroleum tenure is liable to 22 compensate the public road authority for a public road for any 23 cost, damage or loss it incurs, or will incur, that is or will be 24 caused by notifiable road uses carried out by the holder that 25 relate to the road. 26 27 Examples of a possible cost for subsection (1)-- 28 · repair costs to rectify damage to the road caused, or that will be 29 caused, by any of the uses 30 · capital costs for unplanned upgrades of the road incurred, or that 31 will be incurred, because of any of the uses

 


 

s 46 168 s 46 Petroleum and Other Legislation Amendment Bill 2004 1 · bring-forward costs, including interest charges, for a planned 2 upgrade of the road that, because of any of the uses, is or will be 3 required earlier than planned `(2) The holder's liability under subsection (1) is the holder's 4 compensation liability to the public road authority. 5 `(3) The compensation liability-- 6 (a) applies whether or not the holder has, under 7 section 78Z, given notice of the use; and 8 (b) is subject to section 79H;144 and 9 (c) is in addition to, and does not limit or otherwise affect, 10 the holder's liability under another provision of this Act 11 about compensating the public road authority or anyone 12 else. 13 `79C Compensation agreement 14 `(1) A 1923 Act petroleum tenure holder and the public road 15 authority for a public road may enter into an agreement (a 16 compensation agreement) about the holder's compensation 17 liability to the public road authority relating to the road. 18 `(2) A compensation agreement may relate to all or part of the 19 liability. 20 `(3) A compensation agreement must-- 21 (a) be signed by, or for, the holder and the public road 22 authority; and 23 (b) state whether it is for all or part of the liability; and 24 (c) if it is for only part of the liability, state-- 25 (i) each part of the notifiable road use to which the 26 agreement relates; and 27 (ii) the period for which the agreement has effect; and 28 (d) provide for how and when the liability will be met. 29 `(4) A compensation agreement may-- 30 144 Section 79H (Compensation not affected by change in administration or holder)

 


 

s 46 169 s 46 Petroleum and Other Legislation Amendment Bill 2004 (a) extend the holder's compensation liability to the public 1 road authority relating to the road to any renewal of the 2 tenure; and 3 (b) provide for-- 4 (i) monetary or non-monetary compensation; or 5 (ii) a process by which it may be amended or enforced. 6 7 Example for paragraph (b)-- 8 A compensation agreement may provide for compensation under 9 it to be reviewed on the happening of a material change in 10 circumstances for the 1923 Act petroleum tenure, including a 11 significant decrease or increase in the extent of the relevant 12 notifiable road use. `(5) Subsections (2) to (4) do not limit the matters that may be 13 provided for in a compensation agreement. 14 `79D Deciding compensation through tribunal 15 `(1) The public road authority for a public road or a 1923 Act 16 petroleum tenure holder may apply (a compensation 17 application) to the tribunal for the tribunal to decide the 18 holder's compensation liability to the public road authority 19 relating to the road. 20 `(2) The tribunal may decide the compensation liability only to the 21 extent it is not subject to a compensation agreement. 22 `(3) In making the decision, the tribunal may have regard to 23 whether the applicant has attempted to mediate or negotiate 24 the compensation liability. 25 `79E Criteria for decision 26 `(1) The criteria the tribunal must consider, in deciding a 27 compensation application, include-- 28 (a) the reasonableness of the cost, damage or loss claimed; 29 and 30 (b) if the public road authority is a local government--the 31 extent to which the cost, damage or loss claimed has 32

 


 

s 46 170 s 46 Petroleum and Other Legislation Amendment Bill 2004 been, will be or ought reasonably to be or to have been, 1 paid from-- 2 (i) amounts the 1923 Act petroleum tenure holder has 3 paid, or agreed to pay, the public road authority for 4 notifiable road uses; or 5 (ii) rates and charges under the Local Government Act 6 1993 paid or payable by the holder to the public 7 road authority; and 8 (c) any other relevant matter. 9 `(2) In considering the reasonableness of any cost, damage or loss 10 claimed, the tribunal must have regard to-- 11 (a) any action taken, or proposed, by the holder to, or to 12 attempt to, avoid, minimise or remedy the cost, damage 13 or loss; and 14 (b) any relevant act or omission of the public road authority. 15 `(3) Subsection (1)(b)(ii) applies whether or not the rates and 16 charges relate to notifiable road uses. 17 `79F Tribunal review of compensation 18 `(1) This section applies if-- 19 (a) the compensation liability, or future compensation 20 liability, of a 1923 Act petroleum tenure holder to a 21 public road authority has been agreed to under a 22 compensation agreement or decided by the tribunal (the 23 original compensation); and 24 (b) there has, since the agreement or decision, been a 25 material change in circumstances. 26 27 Example of a material change in circumstances-- 28 a significant decrease or increase in the extent of the relevant 29 notifiable road use `(2) The public road authority or the holder may apply to the 30 tribunal for it to review the original compensation. 31 `(3) Sections 79D and 79E apply for the review as if the 32 application were a compensation application. 33

 


 

s 46 171 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(4) The tribunal may, after carrying out the review, decide to 1 confirm the original compensation or amend it in a way the 2 tribunal considers appropriate. 3 `(5) However, before making the decision, the tribunal must have 4 regard to-- 5 (a) the original compensation; and 6 (b) whether the applicant has attempted to mediate or 7 negotiate an amendment of the original compensation; 8 and 9 (c) any change in the matters mentioned in section 79E(1) 10 since the original compensation was agreed or decided. 11 `(6) If the decision is to amend the original compensation, the 12 original compensation as amended under the decision, is for 13 this Act, taken to be the original compensation. 14 `79G Compensation to be addressed before carrying out 15 notifiable road use 16 `(1) It is a condition of each 1923 Act petroleum tenure that its 17 holder must not carry out a notifiable road use on a public 18 road unless-- 19 (a) the holder and the relevant public road authority have 20 signed a compensation agreement for the use; or 21 (b) the public road authority has given written consent to 22 the carrying out of the use; or 23 (c) a compensation application has been made to decide the 24 holder's compensation liability to the public road 25 authority relating to the road.145 26 `(2) A consent under subsection (1)(b) may be given for any 27 renewal of the tenure. 28 145 See section 79E(1) (Deciding compensation through tribunal).

 


 

s 46 172 s 46 Petroleum and Other Legislation Amendment Bill 2004 `79H Compensation not affected by change in 1 administration or holder 2 `(1) An agreement or decision under this part about compensation 3 liability is binding on-- 4 (a) the relevant public road authority; and 5 (b) the relevant 1923 Act petroleum tenure holder; and 6 (c) each of their personal representatives, successors and 7 assigns. 8 `(2) Subsection (1) is subject to section 79F.146 9 `Division 2 Other public land 10 `79I Requirement for entry notice to carry out authorised 11 activities 12 `(1) This section does not apply for a notifiable road use.147 13 `(2) A 1923 Act petroleum tenure holder must not enter public 14 land to carry out an authorised activity for the tenure on public 15 land148 unless-- 16 (a) the activity is an activity that may be carried out by a 17 member of the public without requiring the specific 18 approval of the public land authority for the land; or 19 20 Example-- 21 travelling on a public road in the area of the 1923 Act petroleum 22 tenure (b) the holder has, at least 30 business days before the entry, 23 given the public land authority notice under this part (an 24 entry notice) of the proposed entry; or 25 146 Section 79F (Tribunal review of compensation) 147 For notifiable road uses see sections 78Z (Notice of notifiable road use) and 79 (Directions about notifiable road use). 148 For private land, see part 6H (Private land). See also section 78Z (Notice of notifiable road use).

 


 

s 46 173 s 46 Petroleum and Other Legislation Amendment Bill 2004 (c) the entry is needed to preserve life or property because 1 of a dangerous situation or emergency that exists, or 2 may exist; or 3 (d) the public land authority has agreed that an entry notice 4 is not required. 5 `Maximum penalty for subsection (2)--100 penalty units. 6 `(3) An agreement under subsection (2)(d) is a waiver of entry 7 notice. 8 `79J Waiver of entry notice 9 `(1) A waiver of entry notice-- 10 (a) may be given only by signed writing; and 11 (b) must state each of the following-- 12 (i) that the public land authority has been told it is not 13 required to agree to the waiver of entry notice; 14 (ii) the authorised activities proposed to be carried out 15 on the land; 16 (iii) the period during which the land will be entered; 17 (iv) when and where the activities are proposed to be 18 carried out. 19 (2) The public land authority can not withdraw the waiver of 20 entry notice during the period. 21 (3) The waiver of entry notice ceases to have effect at the end of 22 the period. 23 `79K Required contents of entry notice 24 `(1) An entry notice must state each of the following-- 25 (a) the land proposed to be entered; 26 (b) the period during which the land will be entered (the 27 "entry period"); 28 (c) the activities proposed to be carried out on the land; 29

 


 

s 46 174 s 46 Petroleum and Other Legislation Amendment Bill 2004 (d) when and where the activities are proposed to be carried 1 out; 2 (e) contact details for-- 3 (i) the relevant 1923 Act petroleum tenure holder; or 4 (ii) another person the holder has authorised to discuss 5 the matters stated in the notice. 6 `(2) The entry period must not be longer than-- 7 (a) for an authority to prospect--6 months; or 8 (b) for a petroleum lease--1 year. 9 `(3) However, the entry period may be longer if the public land 10 authority agrees in writing. 11 `(4) Subject to subsections (2) and (3), an entry notice given to 12 1 public land authority in relation to the public land may state 13 a different entry period from an entry notice given to another 14 public land authority in relation to the public land. 15 `(5) If a proposed activity is not likely to significantly disrupt 16 activities the public land authority ordinarily carries out on the 17 land, the entry notice may comply with subsection (1)(c) and 18 (d) by generally describing the nature and extent of the 19 activity. 20 `79L Conditions public land authority may impose 21 `(1) A public land authority may impose relevant and reasonable 22 conditions on a 1923 Act petroleum tenure holder including, 23 for example, about giving the public land authority-- 24 (a) notice of proposed entry-- 25 (i) generally--at least 2 business days before the 26 proposed entry; or 27 (ii) if the holder and the public land authority have 28 agreed to a longer or shorter period for giving the 29 notice--within the longer or shorter period; or 30 (b) notice at stated intervals of activities carried out by, or 31 for, the holder on the land. 32

 


 

s 46 175 s 46 Petroleum and Other Legislation Amendment Bill 2004 `(2) However, the public land authority can not impose a condition 1 that is the same, or substantially the same as, or inconsistent 2 with, a condition of the tenure or a relevant environmental 3 authority. 4 `(3) Despite subsection (2), if the public land authority is the chief 5 executive of the department in which the Nature Conservation 6 Act 1992 is administered, that chief executive may impose a 7 condition more stringent than the conditions of the 8 environmental authority. 9 `(4) If the authority decides to impose a condition, other than a 10 condition agreed to or requested by the holder, it must give the 11 holder an information notice about the decision. 12 `(5) In carrying out the activity, the holder must comply with the 13 conditions. 14 Maximum penalty for subsection (5)--100 penalty units. 15 `Part 6J Access to land in area of 16 another