Queensland Bills Explanatory Notes Queensland Bills Explanatory Notes[Index] [Search] [Download] [Bill] [Help]
1
Gas Pipelines Access (Queensland)
GAS PIPELINES ACCESS
(QUEENSLAND) BILL 1998
EXPLANATORY NOTES
GENERAL OUTLINE
Objectives of the legislation
The objectives of the Bill are to--
· apply in Queensland, the Gas Pipelines Access Law as enacted in
South Australia1;
· provide for derogations from the Gas Pipelines Access Law for
certain Queensland pipelines;
· provide transitional arrangements before the full application of the
Gas Pipelines Access Law in Queensland; and
· establish the Queensland Gas Appeals Tribunal.
Amend the Gas Act 1965 to--
· make the Act consistent with the Gas Pipelines Access Law; and
· provide a legislative framework which establishes the transitional
timetable for the introduction of competition into natural gas
franchise areas.
Amend the Petroleum Act 1923 to--
· make the Act consistent with the Gas Pipelines Access Law; and
· remove requirements within the Act inconsistent with the Natural
Gas Pipeline Access Agreement signed in November 1997.
Amend the Petroleum (Submerged Lands) Act 1982 to--
· make the Act consistent with the Gas Pipelines Access Law.
1Given that the Queensland legislation is adopting the South Australian legislation, the
Queensland Act will prevail to the extent of any inconsistency.
2
Gas Pipelines Access (Queensland)
Reasons for the objectives and how they will be achieved
Apply the Gas Pipelines Access Law in Queensland
National gas reform has been pursued by all State and Territories through
the Council of Australian Governments since 1994. Essentially, the reform
has been aimed at removing all legislative and regulatory impediments to
free and fair trade in natural gas and to establishing a national regulatory
framework to govern third party access to natural gas transportation
throughout Australia.
This approach to gas reform has been pursued on the basis that it will:
· reduce uncertainty by market participants;
· facilitate efficient development and operation of national natural
gas market and safeguard against monopoly abuse;
· promote competitive markets for gas;
· provide a right of access to pipeline networks on fair and
reasonable terms; and
· encourage the development of an integrated pipeline network.
The reform process culminated in the signing of the Natural Gas Pipeline
Access Agreement by all jurisdictions on 7 November 1997. This
Agreement commits Queensland to enacting legislation to apply the Gas
Pipelines Access Law by the end of June 1998. The Gas Pipelines Access
Law will make the obligations, placed on pipeline operators and users by the
Code, legally binding.
Under the Agreement, South Australia was made the lead legislator for
the Gas Pipelines Access Law. The South Australian legislation was
enacted in December 1997. The Gas Pipelines Access Law comprises
Schedule 1 to the South Australian Act, and the National Third Party Access
Code for Natural Gas Pipeline Systems (the Code) which is set out in
Schedule 2 to the South Australian Act.
The Commonwealth is soon to pass legislation to extend the Access
regime to areas where State and Territories legislation do not operate (eg.
offshore waters, relevant external territories and to the Moomba-Sydney
pipeline system). Commonwealth legislation was also necessary to enable
the Australian Competition and Consumer Commission (ACCC), National
3
Gas Pipelines Access (Queensland)
Competition Council (NCC) and Australian Competition Tribunal (ACT) to
perform regulatory functions under the national access arrangements.
This Bill provides for the application of Gas Pipelines Access Law in
Queensland, and supports the nationally consistent approach taken to third
party access to natural gas pipelines.
Provide for derogations from the Gas Pipelines Access Law
Derogations are modifications, variations or exemptions to one or more
of the provisions of the Gas Pipelines Access Law in relation to existing
pipelines. Derogations to the Gas Pipelines Access Law are required to
protect existing pipeline access principles (tariffs in particular) in
Queensland as they were negotiated prior to the development of the Gas
Pipelines Access Law. As pipeline licensees were unable to know the
contents of the then proposed Gas Pipelines Access Law when negotiating
their access principles, and the retrospective application of the Law could
jeopardise the commercial position of pipeline licensees.
To achieve this, the Bill provides for:
· The listed pipelines, which are currently under construction or
soon to be constructed, to be deemed to be covered for the
purposes of the Gas Pipelines Access Law.
· The listed pipelines may have their tariff arrangements approved
by the Minister by gazette notice. These approved tariff
arrangements are then deemed to approved under the Gas
Pipelines Access Law as the reference tariffs and reference tariff
policies for those pipelines until the date given in those reference
tariff policies.
The PNG to Queensland pipeline is strategically important to the
economic development of the State, and will provide a new source of gas
which will generate greater gas on gas competition and the building blocks
for new industries. The regulatory processes currently underway have, with
the agreement of the Commonwealth and in conjunction with the ACCC,
been run by the Department of Mines and Energy. These processes aim to
produce access arrangements which are as far as possible consistent with
the Gas Pipelines Access Law. Some variation may occur, but if the Code
processes are imposed mid-stream, this strategic project could be
jeopardised.
4
Gas Pipelines Access (Queensland)
Therefore, the Bill provides that the access principles approved for the
PNG to Queensland pipeline by the Minister, and with the agreement of the
ACCC, will be taken to be the access arrangements under the Gas Pipelines
Access Law until the date given within those access arrangements.
Provide transitional arrangement before full application of Gas Pipelines
Access Law
The Bill applies the existing access principles developed under the
Petroleum (Qld) Act 1923 to natural gas pipelines until the responsible
regulator under the national Code makes a determination in relation to their
access arrangements. This transition clause is necessary to ensure that some
regulatory framework is applied to pipelines during the possible lengthy
period before the ACCC makes a determination on access arrangements for
a number of Queensland gas pipelines.
Establish the Queensland Gas Appeals Tribunal
During the development of the Code, industry and user groups strongly
supported the inclusion of appeal provisions. The Gas Pipelines Access
Law provides for merit appeals on decisions made by the Designated
Minister and the Regulator relating to:
· coverage decisions;
· ring fencing decisions;
· regulator imposed access arrangements;
· approval of affiliate contracts; and
· decisions covering information disclosure.
The South Australian lead legislation sets out the process for lodging
appeals, as well as the functions and powers of the appeals body. This
appeals body is also required to be independent of the decision-makers
under the Gas Pipelines Access Law.
It was agreed by all jurisdictions (as part of the Natural Gas Pipeline
Access Agreement) that the Australian Competition Tribunal would be the
body responsible for hearing appeals associated with transmission pipelines.
However, there was still a need to establish an appeals body in Queensland
to deal with appeals on distribution pipelines and determine the
5
Gas Pipelines Access (Queensland)
administrative processes within such a body.
This Bill provides for the establishment of a Queensland appeals body
(the Queensland Gas Appeals Tribunal), providing it with sufficient powers
and protections to enable the body to effectively exercise its functions within
Queensland.
Establishment of legislative framework for the transitional introduction
of competition into natural gas franchises
The Bill gives effect to the Queensland Government's policies regarding
natural gas distribution market reform. The process of moving from
current arrangements to new market arrangements imposes some problems
and costs on incumbent distributors. The purpose of the transition
arrangements is to share the burden of the costs between the incumbent
distributors, new retailers and consumers.
Therefore, a threshold reduction strategy was developed which provides
for the phased introduction of contestability into natural gas franchise areas
to allow sufficient time for market incumbents to prepare themselves for
full competition. The implementation of this strategy is intended to occur
through the application of restrictions on the sale of natural gas in franchise
areas and in relation to bypass2.
The threshold reduction strategy provides for the introduction of
contestable customers into the Queensland gas distribution market whereby
customers which consume greater than 100 TJ become contestable as of 1
January 2000 and all remaining customers become contestable as of 1
September 2001.
In order to protect incumbent franchise holders, the sale of natural gas
within franchise areas, by gas suppliers other than existing franchise
holders, will be restricted to contestable customers only. Furthermore,
bypass will only be permitted to contestable consumers, and may be
permitted for new non-contestable consumers on a case by case basis.
2 Bypass occurs when a consumer elects to build (or have built by a third party) a new
pipeline instead of utilising existing network assets.
6
Gas Pipelines Access (Queensland)
Remove requirements within the Petroleum Act which are inconsistent
with the Natural Gas Pipelines Access Agreement
The Natural Gas Pipelines Access Agreement signed at the Council of
Australian Government meeting on 7 November 1997 made clear
commitments in relation to franchising and licensing arrangements within
each jurisdiction. Particularly, bypass to, and interconnection to, contestable
consumers should be allowed. Furthermore, licensing requirements and
conditions should be open to all appropriately qualified pipeline service
operations. For Queensland, this translates into the separation of licensing
from the approval processes for access principles.
Therefore, the Bill amends the Gas Act 1965 to allow the construction or
maintenance of gas distribution pipelines within franchise areas, by persons
other than the franchise-holder, if it is for the purpose of supplying gas to a
contestable consumer. Furthermore, the Bill amends the Petroleum Act
1923 to allow the granting of pipeline licences for natural gas pipelines
which have no access principles under the Petroleum Act.
Consistency with the Gas Pipelines Access Law
While the Bill provides for the application in Queensland of the Gas
Pipelines Access Law, a necessary legislative step is to also make
amendments to the Acts Interpretation Act, Gas Act, Petroleum Act and
Petroleum (Submerged Lands) Acts to ensure that these Acts do not affect
the scope or operation of the Gas Pipelines Access Law.
The Bill provides for the necessary consequential amendments. The
significant changes are as follows:
· inserting definitions of the Gas Pipelines Access (Queensland)
Law and Gas Pipelines Access (Queensland) Regulations into the
Acts Interpretation Act;
· inserting a general clause within the Gas Act, Petroleum Act and
Petroleum (Submerged Lands) Acts to ensure the Gas Pipelines
Access Law prevails in the case of any inconsistency.
Administrative cost to the Government of implementation
The financial implications associated with the Bill will include the costs
of operating the National Gas Pipelines Advisory Committee (NGPAC)
7
Gas Pipelines Access (Queensland)
and the Queensland Gas Appeals Tribunal.
The NGPAC is a national body responsible for the administration of the
Code, which will involve monitoring, reviewing and reporting on the
operations of the Gas Pipelines Access Law, and providing advice to
Minsters on needed Code amendments. It is expected that the
Commonwealth will pay one third of the costs of funding NGPAC
(including any damages or legal costs arising out of the Code Registrar
performing its functions under the Code) with the balance to be shared by
the other jurisdictions based on population.
Consistency with Fundamental Legislative Principles
The Gas Pipelines Access Law was enacted by South Australia and is to
be given force in Queensland through the application of the South
Australian legislation. This arrangement is in accordance with the Natural
Gas Pipelines Access Agreement which the State signed on 7 November
1997. This means that a law will apply in Queensland that has not been
passed, and will not be amended, by the Parliament of Queensland. It can
be argued that this arrangement infringes the sovereignty of the Queensland
Parliament. There are, however, a number of precedents, including the
National Electricity Law and the National Road Transport Legislation.
In response to this issue, a copy of the lead legislation has been attached
to the Bill, provision made for the notification of Parliament of any
amendments to the lead legislation, and the requirement established to
update the attachment upon the first reprint of the Act after an amendment
has been made to Gas Pipelines Access Law.
The derogations from the Gas Pipelines Access Law (which imposes the
reference tariffs and tariff policy upon the Regulator) will be given effect by
way of gazette notice.
Access principles are the commercial and technical rules upon which
pipeline owners give access to their pipelines. These documents are drafted
by the pipeline owners and submitted to the regulator for approval. Once
approved by the Regulator they are automatically given legal effect under the
Petroleum Act. These documents have no set format, and their contents are
determined by the Regulator at that time. The Petroleum Act also requires
that the documents are available to the public.
The derogations are reworded portions of these original access principles,
8
Gas Pipelines Access (Queensland)
which have been altered to fit the general requirements of the Code, while
maintaining their intended original meaning.
Given the technical and commercial nature of the access principles, the
difficulty associated with ensuring conformance to the current access
principles and the requirements of the Code, it has been necessary to give
effect to the derogations outside the legislation process.
Consultation
The Departments of Premier and Cabinet, Treasury, Mines and Energy
and the Office of Rural Communities were consulted on the development of
the Bill.
Natural gas pipeline owners (for the derogated pipelines) and associated
parties were consulted on the details of the derogation provisions.
Other States and Territories have been consulted concerning the contents
of the proposed Bill, in accordance with the Natural Gas Pipeline Access
Agreement.
NOTES ON PROVISIONS
PART 1--PRELIMINARY
Clause 1 sets out the short title for the Bill.
Clause 2 provides for the commencement of the Act on a day to be fixed
by proclamation.
Clause 3: Definitions
The definitions included for the purposes of the Act distinguish between
the Gas Pipelines Access Law as a law to be applied in the jurisdictions of
the scheme participants, and the Gas Pipelines Access (Queensland) Law
being the law as it applies to this State.
The National Third Party Access Code for Natural Gas Pipelines
Systems is included as part of the Law and is set out in schedule 2 to the
South Australian Act.
9
Gas Pipelines Access (Queensland)
The clause provides that definitions included in the Gas Pipelines Access
Law also apply for the purposes of the Act.
Clause 4: Words and expressions used in Gas Pipelines Access Law
Words and expressions used in this Act have the same meaning as those
used in Gas Pipelines Access Law.
Clause 5: Crown to be bound
This clause provides that the legislation binds the Crown.
Clause 6: Application to coastal waters
This clause applies the legislation to the coastal waters of the State.
Clause 7: Extra-territorial operation
This clause provides for the extra-territorial operation of the legislation.
PART 2--GAS PIPELINES ACCESS (QUEENSLAND)
LAW AND GAS PIPELINES ACCESS (QUEENSLAND)
REGULATIONS
Clause 8: Application in Queensland of the Gas Pipelines Access Law
This clause applies the Gas Pipelines Access Law set out in Schedule 1
and 2 of the South Australian Act as a law of Queensland. The clause also
provides that the Law as so applying may be referred as the Gas Pipelines
Access (Queensland) Law.
Clause 9: Application in Queensland of regulations under Gas Pipelines
Access Law
This clause provides that the regulations in force under Part 3 of the
South Australian Act apply as regulations in force for the purposes of the
Gas Pipelines Access (Queensland) Law and Gas Pipelines Access
(Queensland) Regulations.
Clause 10: Attachment
This clause outlines the measures which will allow Parliament to be
advised of subsequent changes to the lead legislation.
10
Gas Pipelines Access (Queensland)
Clause 11: Interpretation of some expressions in the Gas Pipelines
Access (Queensland) Law and the Gas Pipelines Access (Queensland)
Regulations
This clause contains a number of definitions for the purposes of the Gas
Pipelines Access (Queensland) Law and the Gas Pipelines (Queensland)
Regulations.
PART 3--NATIONAL ADMINISTRATION AND
ENFORCEMENT
Division 1--Conferral of functions and powers
Clause 12: Conferral of functions and powers on Commonwealth
Minister and Commonwealth bodies
Functions and powers are conferred on the Commonwealth Minister, the
ACCC, the NCC and the Australian Competition Tribunal for the purposes
of the Law.
Clause 13: Conferral of power on Commonwealth Minister and
Commonwealth bodies to do acts in this State
Powers to act in this State are conferred on the Commonwealth Minister,
the ACCC, the NCC and the Australian Competition Tribunal in relation to
functions conferred on them by a corresponding law of another scheme
participant.
Clause 14: Conferral of power on Ministers, Regulators and appeal
bodies of other scheme participants
Powers to act in this State are conferred on the local Minister, local
Regulator and local appeals body of another scheme participant in relation to
functions conferred on them by a corresponding law of another scheme
participant.
Clause 15: Conferral of functions on, and delegation of powers by, Code
Registrar
11
Gas Pipelines Access (Queensland)
The Code Registrar (established under the South Australian Act) is to
have the functions conferred on the Code Registrar by the Law or the
Natural Gas Pipelines Access Agreement or by unanimous resolution of the
relevant Ministers of the scheme participants. The Code Registrar may also
delegate powers to an appropriately qualified person.
Clause 16: Functions and powers conferred on Queensland Minister,
Regulator and appeals body
This clause provides for acceptance of a conferral of functions or powers
on a Queensland entity by the corresponding legislation of another scheme
participant.
Clause 17: Functions of QCA as local Regulator
The clause ensures that, for natural gas pipelines, the Queensland
Competition Authority (QCA) does not have functions or powers outside
those considered by the Gas Pipelines Access Law. Also, the clause
provides that the QCA is not subject to Ministerial direction in relation to the
exercise of its powers under this Act.
Division 2--Federal Court
Clause 18: Jurisdiction of Federal Court
Criminal and civil jurisdiction necessary for the purposes of the Law is
conferred on the Federal Court.
Clause 19: Conferral of jurisdiction on Federal Court not to affect
cross-vesting
The cross-vesting legislation is not to be affected.
Division 3--Administrative decisions
Clause 20: Application of Commonwealth AD(JR) Act
12
Gas Pipelines Access (Queensland)
This clause applies the Commonwealth Administrative Decisions
(Judicial Review) Act as a law of this State in relation to decisions of the
listed Code bodies made under the Gas Pipelines Access (Queensland)
Law. This clause indirectly applies the Queensland Judicial Review Act
1991 to decisions of local Code bodies (ie. local appeals body, local
Minister, local Regulator and arbitrator) made on distribution pipelines
located completely within Queensland's borders.
Clause 21: Application of Commonwealth AD(JR) Act in relation to
other scheme participants
This clause applies the Commonwealth Administrative Decisions
(Judicial Review) Act as a law of this State in relation to decisions of the
listed Code bodies made under the corresponding legislation of another
scheme participant. This will mean that the Commonwealth Administrative
Decisions (Judicial Review) Act will be applied to decisions of local Code
bodies (ie. local appeals body, local Minister, local Regulator and arbitrator)
in relation to cross-boundary pipelines (see clause 52).
PART 4--LOCAL APPEALS BODY
Division 1--Establishment, function and powers of Queensland Gas
Appeals Tribunal
Clause 22: Establishment of tribunal
This clause establishes a local appeals body for the purposes of the
legislation. The Tribunal is to be constituted from time to time as the need
arises. The Tribunal will consist of six members which includes a
chairperson and a pool of five panel members.
Clause 23: Function of tribunal
13
Gas Pipelines Access (Queensland)
The function of the Tribunal is to conduct reviews of decisions made
under the Gas Pipelines Access (Queensland) Law.
Clause 24: Powers of tribunal
The powers of the Tribunal are governed by the Gas Pipelines Access
(Queensland) Law and other procedural powers conferred on it under this
part.
Division 2--Provisions about tribunal members, registrar and other
staff
Clause 25: Qualifications of tribunal members
The chairperson is nominated by the Premier and must have been a
Supreme or District Court judge or a lawyer of at least five years standing.
The Premier having regards to certain desirable knowledge requirements
also nominates members of the pool.
Clause 26: Appointment of members
Provides for the Governor in Council to appoint the members. The
appointments will not be under the Public Service Act 1996.
Clause 27: Duration of appointment
Provides that members of the Tribunal will be appointed for a term no
longer than three years.
Clause 28: Vacation of office
Provides that a member may resign by signed notice to the Premier and
that a member looses office automatically if found guilty of an indictable
offence. The clause also provides for the circumstances when the Governor
in Council may terminate the appointment of a member.
Clause 29: Remuneration of members
Provides that members are to be paid the remuneration and allowances
decided by the Governor in Council.
Clause 30: Appointment of registrar and other staff
Provides for the appointment of a registrar and other staff to assist the
14
Gas Pipelines Access (Queensland)
Tribunal to perform its duties. The registrar and other staff are to be
employed under the Public Service Act 1996.
Division 3--Reviews by the tribunal
Clause 31: How application for review made
Provides that a review is started by the filing of a written notice of appeal
with the registrar. A copy of this application for appeal must be given to
either the local Regulator or local Minister (depending on the originating
decision upon which the appeal is made).
Clause 32: Who constitutes tribunal for review
In reviewing a decision, the Tribunal will be constituted by a chairperson
and 3 members selected (by the chairperson) from the pool of five. The
clause provides the basis for the choice of panel members.
Clause 33: Conduct of proceeding
Details what the Tribunal is required to consider in a review of a decision
and how the Tribunal can conduct its proceedings.
Clause 34: Venues
Provides for the Tribunal to sit at times and places which the chairperson
decides.
Clause 35: Right of appearance
Allows the appearance of agents or lawyers on behalf of parties.
Clause 36: Way questions decided
Questions of law are to be determined by the chairperson and other
questions by unanimous or majority decision of the members of the
Tribunal. If the opinion of the Tribunal is equally divided, the question will
be resolved by the chairperson's opinion.
Clause 37: Notice of decision
The registrar must send a copy of the tribunal's determination and
reasons for it to the applicant and the local Regulator or local Minister
(depending on the originating decision upon which the appeal is made).
15
Gas Pipelines Access (Queensland)
Division 4--Procedural provisions about reviews by the tribunal
Clause 38: Procedural powers of tribunal
This clause governs various procedural matters, including providing the
Tribunal with power to issue summonses.
Clause 39: Inspection of documents
Provides the Tribunal with powers to inspect, copy, or seize documents
or other things, and permit other persons to inspect or copy those
documents or things.
Clause 40: Offences
Describes the offences and penalties relating to the attendance of persons
to, and evidence given by persons at a Tribunal proceedings.
Clause 41: Self-incrimination
Provides for the excuse of self-incrimination for failing to answer a
question or produce a document.
Clause 42: False or misleading information
Describes the offence and penalties relating to the provision of
misleading information.
Clause 43: False or misleading documents
Describes the offence and penalties relating to the provision of
misleading documents.
Clause 44: Tribunal to keep records of proceedings
The Tribunal must keep records of its proceedings in a way it considers
appropriate.
Division 5--Other provisions about the tribunal
Clause 45: Disclosure of interests
A member of the Tribunal must disclose interests that could conflict with
16
Gas Pipelines Access (Queensland)
the proper performance of his or her functions in relation to proceedings,
and without the consent of all parties to the proceedings, must not take part
in those proceedings. The chairperson may also direct the member to not
take part, nor continue to take part, in proceedings, but must in any event
cause the disclosure of such interests.
Clause 46: Contempt of tribunal
Describes the offence and penalties relating to contempt of the Tribunal.
Clause 47: Protection of members, legal representatives and witnesses
Provides for protection of members of the tribunal, parties or agents of
parties, and witnesses, from legal action.
Clause 48: Authentication of documents
The signature of a Tribunal member is sufficient authentication of
Tribunal documents.
Clause 49: Judicial notice of certain signatures
Judicial notice must be given to a signature of a member of the Tribunal
appearing on a Tribunal document.
Clause 50: Confidentiality
Describes the offence and penalties relating to the disclosure of
confidential information which past and present members of or staff of the
Tribunal may have had access to. Some information may be disclosed
based on defined reasons.
Division 6--Subcommittees
Clause 51: Advisory and technical subcommittees
Provides for the appointment of subcommittees to advise the Tribunal.
Clause 52: Proceedings of subcommittees
Specifies the way the proceedings of subcommittees must follow.
Clause 53: Regulation-making power for pt 4
Provides general regulation making power in relation to the application of
this Part.
17
Gas Pipelines Access (Queensland)
PART 5--MISCELLANEOUS
Clause 54: Exemption from taxes
Certain service providers may be required by the ring fencing
requirements of sections 4.1 and 4.3 of the Code to reorganise their
businesses by transferring assets or liabilities. Where the local Minister and
Treasurer are satisfied that the sole purpose of a transfer is to comply with
the ring fencing requirements of the Code, stamp duty and other taxes will
not to be payable.
Clause 55: Actions in relation to cross-boundary pipelines
Where a pipeline crosses State borders, action taken in one of the
jurisdictions under the Law applicable in that jurisdiction is to be regarded as
also having been taken under the Law applicable in the other jurisdiction.
PART 6--LOCAL TRANSITIONAL PROVISIONS
Clause 56: Definition for pt 6
Defines the terms "pipeline licence", "PNG to Queensland pipeline" and
"Queensland part of the PNG to Queensland pipeline".
Clause 57: Pipelines taken to be covered pipelines
The listed pipelines are taken to be covered pipelines for the purposes of
the Gas Pipelines Access Law.
Clause 58: Reference tariffs for certain pipelines
The Minister may, by gazette notice, approve a tariff arrangement for the
listed pipelines. These approved tariff arrangements are taken to be
approved under the Gas Pipelines Access Law as the reference tariffs and
reference tariff policies for the listed pipelines. The revisions submission
date and the revisions commencement date, that are mentioned in those
reference tariff policies, are to be accepted as those dates for the accepted
access arrangements.
Clause 59: Access principles for PNG to Queensland pipeline
18
Gas Pipelines Access (Queensland)
This clause only applies if access principles are submitted to the local
Minister within one year of the commencement of the Act and approved
within 1 year after that submission. If this is the case, the provisions of the
Petroleum Act 1923 dealing with access, continue to apply to the pipeline
until access principles are approved by the local Minister and agreed to by
the ACCC. Once approved by the local Minister, they are taken to approved
under the Gas Pipelines Access Law as the access arrangements for the
pipeline. The revisions submission date mentioned in those approved
access principles are taken to be the revisions submission date in the
approved access arrangements.
Clause 60: Access principles for certain other pipelines
Part 8 of the Petroleum Act 1923 continues to apply to the listed pipelines
until the relevant Regulator approves access arrangements for those
pipelines.
PART 7--CONSEQUENTIAL AMENDMENTS
Division 1--Amendment of Acts Interpretation Act 1954
Clause 61: Act amended in div 1
This division amends the Acts Interpretation Act 1954.
Clause 62: Amendment of s 36 (Meaning of commonly used words and
expressions)
Insert new definitions for the terms "Gas Pipelines Access (Queensland)
Law" and "Gas Pipelines Access (Queensland) Regulations" as defined in
sections 7 and 8 of the Act.
Division 2--Amendment of Gas Act 1965
Clause 63: Act amended in div 2
19
Gas Pipelines Access (Queensland)
This division amends the Gas Act 1965.
Clause 64: Amendment of s 5 (Definitions)
Inserts new terms in section 5 "contestable consumer" and
"non-contestable consumer", and refers to sections 5B and 5C for the
definitions. The process of moving from current arrangements to new
market arrangements imposes some problems and costs on incumbent
distributors. The purpose of sections 5B and 5C is to describe the
Government's threshold reduction strategy (which provides for the phased
introduction of contestability into natural gas franchise areas to allow
sufficient time for market incumbents to prepare themselves for full
competition).
Clause 65:
Insertion of new s 5B
Inserts new section 5B which defines the term "contestable consumer",
Insertion of new s 5C
New section 5C defines the terms "non-contestable consumer" and "new
non-contestable consumer".
Clause 66: Insertion of new s 11
Insert a new section 11 to ensure that the Gas Pipelines Access
(Queensland) Law will prevail in the case of any inconsistency between the
Gas Act 1965 and Gas Pipelines Access (Queensland) Law.
Clause 67: Amendment of s 20 (Provisions applicable to a reticulation
system)
Insert the words "or 52D" after the words "52C" in this section.
Clause 68: Amendment of s 52C (Restriction of constructing and
maintaining pipe)
Insert a new sub-section causing section 52C to no longer apply to pipes
as defined under the Gas Pipelines Access (Queensland) Law.
Clause 69:
Insertion of new s 52D: Restriction on constructing and maintaining
distribution pipeline
Provides that a person must not construct or maintain a gas distribution
pipeline (as defined under the Gas Pipelines Access (Queensland) Law)
within any area, with the purpose of supplying gas to a consumer, unless at
20
Gas Pipelines Access (Queensland)
least one of the stated conditions are met. The clause provides an
unrestricted regulation-making power to authorise a person to construct or
maintain a gas distribution pipeline in an area (other than a franchise area).
For a franchise area, there is a limited regulation-making power for
contestable and new non-contestable consumers only.
The implementation of the Government's threshold reduction strategy is
intended to occur through the application of restrictions in relation to bypass
and on the sale of natural gas in franchise areas. This clause imposes is the
first part of the necessary restrictions.
In order to protect incumbent franchise holders, bypass will only be
permitted to contestable consumers, and may be permitted for new
non-contestable consumers on a case by case basis.
The clause also describes the offence and penalties relating to a failure to
comply with subsection (1).
Insertion of new s 52E: Restriction on sale of gas in franchise area
Provides that a person must not sell gas to a consumer within a franchise
area unless that consumer is a contestable consumer or that person is the
current franchise holder. The clause provides a regulation making power to
authorise a person to sell gas in a franchise area to a new non-contestable
consumer.
The implementation of the Government's threshold reduction strategy is
intended to occur through the application of restrictions in relation to bypass
and on the sale of natural gas in franchise areas. This clause imposes is the
second part of the necessary restrictions.
In order to protect incumbent franchise holders, the sale of natural gas
within franchise areas, will be restricted to only contestable customers, and
may be permitted for new non-contestable consumers on a case by case
basis.
The clause also describes the offence and penalties relating to a failure to
comply with subsection (1).
Clause 70: Amendment of s 64 (Regulation-making power)
Insert a new subsection which ensures that the Gas Pipelines Access
(Queensland) Law will prevail in the case of any inconsistency between a
regulation made under the Gas Act 1965 and Gas Pipelines Access
(Queensland) Law.
21
Gas Pipelines Access (Queensland)
Division 3--Amendment of Petroleum Act 1923
Clause 71: Act amended in div 3
This division amends the Petroleum Act 1923.
Clause 72: Amendment of s 7 (Application of Act)
Insert a new subsection to ensure that the Gas Pipelines Access
(Queensland) Law will prevail in the case of any inconsistency between the
Petroleum Act 1923 and Gas Pipelines Access (Queensland) Law.
Clause 73: Amendment of s 69 (Pipeline licences)
Insert a new subsection which allows the granting of pipeline licences for
gas pipelines (defined under the Gas Pipelines Access (Queensland) Law)
which do not have access principles approved under the Petroleum Act
1923, or a regulation of exemption. This is to ensure consistency
Queensland legislation and the Natural Gas Pipeline Access Agreement
signed on 7 November 1997.
Clause 74: Amendment of s 70 (Access principles to be approved before
grant of pipeline licence)
Insert a new subsection which provides that s 70 does not apply to gas
pipelines (defined under the Gas Pipelines Access (Queensland) Law).
This clause allows the granting of pipeline licences for gas pipelines which
do not have access principles approved under the Petroleum Act 1923. This
is to ensure consistency between Queensland legislation and the Natural Gas
Pipeline Access Agreement signed on 7 November 1997.
Clause 74: Amendment of s 104 (Application of part to pipelines)
Omits section 104(1), and inserts a new s 104(1) which applies Part 8 of
the Petroleum Act to all licensed pipelines, and pipelines owned by the
corporation sole, except those pipelines defined under the Gas Pipelines
Access Law (subject to sections 59 and 60 of this Gas Pipelines Access
Law), or those pipelines declared under a regulation.
22
Gas Pipelines Access (Queensland)
Division 4--Amendment of Petroleum (Submerged Lands) Act 1982
Clause 76: Act amended in div 4
This division amends the Petroleum (Submerged Lands) Act 1923.
Clause 77: Insertion of new s 6A
Insert a new section after section 6 which ensures that the Gas Pipelines
Access (Queensland) Law will prevail in the case of any inconsistency
between the Petroleum (Submerged Lands) Act 1923 and Gas Pipelines
Access (Queensland) Law.
© The State of Queensland 1998