PETROLEUM ACT 1923 - As at 3 November 2021 - Act 26 of 1923
PETROLEUM ACT 1923
- As at 3 November 2021
- Act 26 of 1923
TABLE OF PROVISIONS
Long Title
PART 1 - PRELIMINARY
1. Short title
2. Definitions
3. Relationship with Mineral Resources Act
4. Relationship with Nature Conservation Act 1992
4A. Relationship with Geothermal Act and Greenhouse Gas Storage Act 2009
4B. Relationship with Common Provisions Act
4C. (Repealed)
4D. (Repealed)
4E. (Repealed)
4F. (Repealed)
4G. (Repealed)
4H. (Repealed)
5. Declaration for Commonwealth Act
6. (Repealed)
7. Application of Act
7A. Act applies out to coastal waters of the State
7AA. Qualification of 1923 Act petroleum tenure holders
7B. (Repealed)
PART 2 - (Repealed)
PART 3 - RIGHTS AND POWERS OF THE CROWN
9. Petroleum the property of the Crown
10. Reservations in grants
10A. (Repealed)
11. (Repealed)
12. (Repealed)
13. (Repealed)
14. (Repealed)
15. (Repealed)
16. (Repealed)
PART 4 - (Expired)
PART 5 - (Repealed)
PART 6 - PROVISIONS RELATING TO LEASES
Division 1 - General provisions for leases
40. (Expired)
40A. Continuing effect, for s 40 application, of authority to prospect and its work program
40AA. Rejection of application if applicant disqualified
40B. Minister’s power to decide excluded land for lease
41. (Repealed)
42. (Repealed)
43. (Repealed)
44. Form etc. of lease
45. Entitlement to renewal of lease
45A. Continuing effect of lease for renewal application
45B. When renewed lease takes effect
46. Annual rent
46A. Application of GST to rents
47. Reservations, conditions and covenants of lease
48. Commencement of drilling
49. Ascertainment of value
50. (Repealed)
51. Use and occupation of mining area on private or improved land
52. Surrender and determination of lease
52A. Application of 2004 Act provisions about coextensive natural underground reservoirs
52B. Continuing effect of particular authorities to prospect despite expiry on 1 November 2021
Division 2 - Development plans
Subdivision 1 - Requirements for proposed later development plans
53. Operation of sdiv 1
53A. General requirements
53B. Plan period
Subdivision 2 - Approval of proposed later development plans
53C. Application of sdiv 2
53D. Lease taken to have development plan until decision on whether to approve proposed development plan
53E. Deciding whether to approve proposed plan
53F. Power to require relinquishment
53G. Steps after, and taking effect of, decision
Division 3 - Miscellaneous provisions
54. (Repealed)
55. (Repealed)
55A. (Repealed)
56. (Repealed)
58. (Repealed)
59. (Repealed)
60. (Repealed)
61. Obstruction of 1923 Act petroleum tenure holder
62. (Repealed)
63. (Repealed)
64. (Repealed)
65. Reservations in favour of State
66. (Repealed)
67. (Repealed)
68. (Repealed)
69. (Repealed)
69A. (Repealed)
70. (Repealed)
70A. (Repealed)
71. (Repealed)
72. (Repealed)
73. Recovery of amounts payable to the State
PART 6A - KEY MANDATORY CONDITIONS AND RELATED PROVISIONS
Division 1 - Preliminary
74. Operation of div 1
Division 2 - Specific mandatory conditions for authorities to prospect and related provisions
Subdivision 1 - Standard relinquishment condition and related provisions
Note—
74A. Standard relinquishment condition
74B. Consequence of failure to comply with relinquishment condition
74C. Part usually required to be relinquished
74D. Sub-blocks that can not be counted towards relinquishment
74E. Adjustments for sub-blocks that can not be counted
74F. Relinquishment must be by blocks
74G. Ending of authority to prospect if all of area relinquished
Subdivision 2 - Work programs
74H. Requirement to have work program
74I. Compliance with exploration activities in work program
74J. Penalty relinquishment if work program not completed within extended period
74K. Obligation to lodge proposed later work program
74L. Consequence of failure to comply with notice to lodge proposed later work program
Subdivision 3 - Miscellaneous conditions
74M. Restriction on flaring or venting
74N. Petroleum royalty and annual rent
Division 3 - Specific mandatory conditions for leases and related provisions
Subdivision 1 - Development plans
74O. Requirement to have development plan
74P. Compliance with development plan
74Q. Obligation to lodge proposed later development plan
74R. Consequence of failure to comply with notice to lodge proposed later development plan
Subdivision 2 - Other mandatory conditions for leases
74S. Restriction on flaring or venting
74T. Obligation to commence production
74TA. Power to impose or amend condition if changed holder of lease
Division 4 - Provisions for all 1923 Act petroleum tenures
Subdivision 1 - Preliminary
74U. Application of div 4
Subdivision 2 - General mandatory conditions
74V. (Repealed)
74W. Civil penalty for nonpayment of annual rent
74X. Compliance with land access code
74Y. (Repealed)
74Z. Obligation to comply with Act and prescribed standards
75. Obligation to survey if Minister requires
75AA. (Repealed)
Division 5 - Mandatory conditions and related provisions for when 1923 Act petroleum tenure ends or area reduced
75A. Obligation to decommission pipelines
75B. Obligation to remove equipment and improvements
75C. Authorisation to enter to facilitate compliance with s 74X or this division
PART 6B - PROVISIONS RELATING TO AUTHORISED ACTIVITIES
75D. General restriction on carrying out authorised activities
75E. Who may carry out authorised activity for holder
75EA. Limitation of owner’s or occupier’s tortious liability for authorised activities
PART 6C - COMMERCIAL VIABILITY ASSESSMENT
75F. Minister’s power to require commercial viability report
75G. Required content of commercial viability report
75H. Minister’s power to obtain independent viability assessment
75I. Costs of independent viability assessment
PART 6CA - (Repealed)
PART 6D - WELLS, WATER OBSERVATIONS BORES AND WATER SUPPLY BORES
Division 1 - Restrictions on drilling
75J. Requirements for drilling well
75K. Restriction on who may drill water observation bore or water supply bore
Division 2 - Converting well to water observation bore or water supply bore
75KA. Application of div 2
75L. Restrictions on making conversion
75M. Notice of conversion
75MA. Time of conversion
Division 3 - Transfers of wells, water observation bores and water supply bores
Subdivision 1 - General provisions
75N. Operation of div 3
75O. Transfer only permitted under div 3
75P. Effect of transfer
Subdivision 2 - Permitted transfers
75Q. Transfer of water observation bore or water supply bore to landowner
75QA. Transfer of water observation bore to State
75R. Transfer of well to holder of geothermal tenure or mining tenement
75S. Transfer of water observation bore to petroleum tenure holders or water monitoring authority holder
Subdivision 3 - Notice of transfer
75T. Notice of transfer to Water Act regulator or Mineral Resources Act chief executive
Division 4 - Decommissioning of wells, water observation bores and water supply bores
75U. Obligation to decommission
75V. Right of entry to facilitate decommissioning
75W. Responsibility for well or bore after decommissioning
Division 5 - Water monitoring authorities
Subdivision 1 - Obtaining water monitoring authority
75WA. Who may apply for water monitoring authority
75WB. Requirements for making application
75WC. Deciding application for water monitoring authority
Subdivision 2 - Key authorised activities
75WD. Operation of sdiv 2
75WE. Water monitoring activities
75WF. Limited right to take or interfere with underground water
75WG. Authorisation for Water Act
75WH. Water Act not otherwise affected
75WI. Restriction on carrying out authorised activities
75WJ. No right to petroleum discovered
Subdivision 3 - Miscellaneous provisions
75WK. Term of authority
75WL. Provision for who is the authority holder if only 1 related petroleum tenure
75WM. Additional condition of relevant petroleum tenure
75WN. Amending water monitoring authority by application
PART 6E - REPORTING
Division 1 - General reporting provisions
Note—
75X. Requirement to report outcome of testing
75XA. Notice about water observation bore or water supply bore to Water Act regulator
75Y. (Repealed)
75Z. Relinquishment report
76. End of tenure report
Division 2 - Records and samples
76A. Requirement to keep records and samples
76B. Requirement to lodge records and samples
Division 3 - Releasing required information
76C. Meaning of required information
76D. Public release of required information
76E. Chief executive may use required information
76F. (Repealed)
76G. Power to require information or reports about authorised activities to be kept or given
76GA. Giving copy of required notice by publication
76GB. Copy of particular notices for chief executive (environment)
PART 6F - PROVISIONS FOR COAL SEAM GAS
Division 1 - Preliminary
Subdivision 1 - Introduction
76H. Main purposes of pt 6F
76I. How main purposes are achieved
76J. Relationship with other provisions of Act
Subdivision 2 - Definitions for pt 6F
76K. What is coal seam gas and incidental coal seam gas
76L. What is oil shale
76M. What is a coal exploration tenement and a coal mining lease
76N. What is an oil shale exploration tenement and an oil shale mining lease
76O. What is a coal or oil shale mining tenement
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
Subdivision 2 - Restriction on authorised activities on coal or oil shale mining lease land
76Q. Application of sdiv 2
76R. Restriction
Subdivision 3 - Condition
76S. Compliance with obligations under Mineral Resources Act
Division 3 - Renewal provisions
76T. Application of div 3
76U. Additional requirements for making application
76V. Content requirements for CSG statement
76W. Applicant’s obligations
76X. Minister may require further negotiation
76Y. Consequence of applicant not complying with obligations or requirement
76Z. Obligations of coal or oil shale exploration tenement holder
77. Submissions by coal or oil shale exploration tenement holder
Division 4 - Other additional provisions for leases
Subdivision 1 - Conditions
77N. Compliance with obligation to negotiate with coal or oil shale mining lease applicant
77O. Requirement for giving of copy of relinquishment report
77P. Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement
Subdivision 2 - Amendment of relinquishment condition by application
77Q. Application of sdiv 2
77R. Conditions for applying to amend
77S. Obligation of coal or oil shale exploration tenement holder to negotiate
77T. Requirements for making application
77U. Notice of application
77V. Submissions by coal or oil shale exploration tenement holder
77W. Minister may require further negotiation
77X. Deciding amendment application
Subdivision 3 - Restriction on amendment of other conditions
77Y. Interests of relevant coal or oil shale mining tenement holder to be considered
Division 5 - Restrictions on particular transfers
77Z. Requirement for coordination arrangement to transfer lease in tenure area of mining lease
Division 6 - Additional provisions for development plans
Subdivision 1 - Additional requirements for proposed later development plans
77ZA. Operation of sdiv 1
77ZB. Statement about interests of coal or oil shale mining tenement holder
77ZC. Requirement to optimise petroleum production
77ZD. Consistency with coal or oil shale mining lease, development plan and relevant coordination arrangement
Subdivision 2 - Other additional provisions for proposed later development plans
77ZE. Application of sdiv 2
78. Additional criteria for approval
Division 7 - Confidentiality of information
78A. Application of div 7
78B. Confidentiality obligations
78C. Civil remedies
PART 6FA - PROVISIONS FOR GEOTHERMAL TENURES AND GHG AUTHORITIES
Division 1 - Preliminary
78CA. Relationship with other provisions
78CB. What is an overlapping authority (geothermal or GHG)
78CC. General provision about 1923 Act petroleum tenures for land subject to geothermal tenure or GHG authority
Division 2 - Restrictions on authorised activities for authorities to prospect
78CD. Overlapping geothermal or GHG lease
78CE. Overlaps with geothermal permit or particular GHG authorities
78CF. Resolving disputes about the restrictions
Division 3 - Leases with overlapping geothermal tenure or GHG authority
Subdivision 1 - Continuance of coordination arrangements after renewal or dealing
78CG. Requirement to continue geothermal or GHG coordination arrangement
Subdivision 2 - Later development plans
78CH. Operation of sdiv 2
78CI. Statement about interests of overlapping tenure holder
78CJ. Consistency with overlapping tenure’s development plan and with any relevant coordination arrangement
Division 4 - Provisions for all 1923 Act petroleum tenures
Subdivision 1 - Safety management systems
78CK. Requirements for consultation with particular overlapping tenure holders
78CL. Application of 2004 Act provisions for resolving disputes about reasonableness of proposed provision
Subdivision 2 - Other provisions
78CM. Condition to notify particular authority holders of proposed start of designated activities
78CN. Restriction on power to amend
PART 6G - SECURITY
78D. Operation and purpose of pt 6G
78E. Power to require security for 1923 Act petroleum tenure
78F. Minister’s power to require additional security
78G. Interest on security
78H. Power to use security
78I. Replenishment of security
78J. Security not affected by change in holder
78K. Retention of security after 1923 Act petroleum tenure ends
PART 6H - (Repealed)
PART 6I - (Repealed)
PART 6J - (Repealed)
PART 6K - (Repealed)
PART 6L - OWNERSHIP OF PIPELINES, EQUIPMENT AND IMPROVEMENTS
Division 1 - Pipelines
79W. Application of div 1
79X. General provision about ownership while tenure is in force for pipeline
79Y. Ownership afterwards
Division 2 - Equipment and improvements
79Z. Application of div 2
80. Ownership of equipment and improvements
PART 6M - (Repealed)
PART 6N - (Repealed)
PART 6NA - (Repealed)
PART 6NB - (Repealed)
PART 6O - ENFORCEMENT OF END OF TENURE AND AREA REDUCTION OBLIGATIONS
80L. Power of authorised person to ensure compliance
80M. Requirements for entry to ensure compliance
80N. Duty to avoid damage in exercising remedial powers
80O. Notice of damage because of exercise of remedial powers
80P. Compensation for exercise of remedial powers
80Q. Ownership of thing removed in exercise of remedial powers
80R. Recovery of costs of and compensation for exercise of remedial power
PART 6P - NONCOMPLIANCE PROCEDURE
Division 1 - Introduction
80S. Operation of pt 6P
Division 2 - Noncompliance action
80T. Types of noncompliance action that may be taken
80U. When noncompliance action may be taken
Division 3 - Procedure for noncompliance action
80V. Application of div 3
80W. Notice of proposed noncompliance action
80X. Considering submissions
80Y. Decision on proposed noncompliance action
80Z. Notice and taking effect of decision
81. Consequence of failure to comply with relinquishment requirement
PART 6Q - OTHER COMMON PROVISIONS FOR 1923 ACT PETROLEUM TENURES
82. (Repealed)
83. Restrictions on location of drills
84. Prevention of waste etc.
85. Casing well
86. Water rights
87. Water monitoring activities
88. Duty to avoid interference in carrying out authorised activities
89. Compliance with Act etc.
90. Regulations may prescribe further provisions
91. (Repealed)
92. Delivery of premises in case of forfeiture
93. Right to mine for other minerals
94. (Repealed)
95. Limits on use of water from natural source
96. Who bound by terms of 1923 Act petroleum tenure
97. (Repealed)
98. (Repealed)
99. (Repealed)
100. Union of leases
101. Minister’s power to ensure compliance by 1923 Act petroleum tenure holder
102. Interest on amounts owing to the State under this Act
103. Recovery of unpaid amounts
PART 6R - (Repealed)
PART 7 - APPEALS
104. Who may appeal
105. Period to appeal
106. Starting appeal
107. Stay of operation of decision
108. Hearing procedures
109. Land Court’s powers on appeal
PART 8 - EVIDENCE AND LEGAL PROCEEDINGS
Division 1 - Evidentiary provisions
110. Application of div 1
111. Appointments and authority
112. Signatures
113. Other evidentiary aids
Division 2 - Offence proceedings
114. Offences under Act are summary
114A. (Repealed)
114B. (Repealed)
114C. (Repealed)
115. Statement of complainant’s knowledge
116. Allegations of false or misleading matters
117. Conduct of representatives
118. Additional orders that may be made on conviction
PART 9 - MISCELLANEOUS
Division 1 - Applications
119. Application of div 1
120. Requirements for making an application
121. Request to applicant about application
121A. Refusing application for failure to comply with request
121B. Particular criteria generally not exhaustive
121C. Particular grounds for refusal generally not exhaustive
122. Amending applications
123. Withdrawal of application
124. Minister’s power to refund application fee
Division 1A - How to lodge or give particular documents, make particular applications or make submissions
124AA. Place or way for making applications, giving or lodging documents or making submissions
Division 2 - Miscellaneous provisions for 1923 Act petroleum tenures
124A. Extinguishing 1923 Act petroleum interests on the taking of land in a 1923 Act petroleum tenure’s area (other than by an easement)
124B. Effect of extinguishment of 1923 Act petroleum interests on the taking of land in a 1923 Act petroleum tenure’s area (other than by an easement)
124C. Compensation for effect of taking of land in a 1923 Act petroleum tenure’s area on 1923 Act petroleum interests
125. Power to correct or amend
126. (Repealed)
127. Joint and several liability for conditions and for debts to State
128. Notice of agent
Division 3 - Other miscellaneous provisions
128A. Period of effect of particular later work programs
128B. Period of effect of particular later development plans
129. Name and address for service
130. Additional information about reports and other matters
131. References to right to enter
132. Application of provisions
133. Protection from liability for particular persons
134. Delegation by Minister or chief executive
135. Approved forms
136. (Repealed)
137. (Repealed)
138. (Repealed)
139. (Repealed)
140. (Repealed)
141. (Repealed)
142. (Repealed)
143. Position to be ascertained by reference to prescribed geodetic reference framework
144. Interference with pipeline or petroleum activities under this Act
144A. (Repealed)
145. (Repealed)
146. (Repealed)
147. Penalties
148. Other rights of action not affected
149. Regulation-making power
150. Declaration about certain 1923 Act petroleum tenures
PART 10 - TRANSITIONAL PROVISIONS FOR 1923 ACT PETROLEUM TENURES FROM 31 DECEMBER 2004
Division 1 - General transitional provisions
Subdivision 1 - Particular unfinished applications
Note—
151. Unfinished authority to prospect applications for which a Commonwealth Native Title Act s 29 notice has been given
152. Additional condition of authority to prospect granted under s 151
153. Lapsing of unfinished former s 42 applications
Subdivision 2 - Authorities to prospect
154. Area of land in area of coal or oil shale mining lease becomes excluded land
155. Conditions of an authority to prospect about expenditure or work becomes its work program
Subdivision 3 - Leases
156. Program for development and production for a lease becomes its development plan
Subdivision 4 - Conflict between 1923 Act petroleum tenure conditions and relevant environmental conditions
157. Environmental conditions prevail
Subdivision 5 - Securities
158. Provision for existing demands for additional or alternative security under former s 43(8)
159. Monetary securities
160. Non-monetary securities
Subdivision 6 - Notices of entry under Petroleum Regulation 1966 relating to 1923 Act petroleum tenure
161. Conversion to entry notice
Subdivision 7 - Compensation
162. Accrued compensation rights relating to 1923 Act petroleum tenure
163. Existing compensation agreements relating to 1923 Act petroleum tenure
Subdivision 8 - Continuation of former cancellation provision in particular circumstances
164. Continued application of former s 22 for previous acts or omissions
Subdivision 9 - Existing road uses
165. Exclusion of pt 6I, div 1 for continuance of particular existing road uses
Subdivision 9A - Provisions for existing Water Act bores
165A. Exemption from, or deferral of, reporting provisions for existing 1923 Act petroleum tenure holders
165B. Make good obligation only applies for existing Water Act bores on or from 31 December 2004
Subdivision 10 - Miscellaneous provisions
166. Provision for cancellation of particular conditions of lease 191
167. Application of s 3 to particular existing mining tenements
168. Deferral of s 52A for existing leases
169. Deferral of s 79I for particular 1923 Act petroleum tenure holders
Division 2 - Relinquishment condition until first renewal after 31 December 2004, and related provisions
170. Application of div 2
171. What is the current term of an authority to prospect
172. What are the transitional notional sub-blocks of an authority to prospect
173. Relinquishment condition if authority includes a reduction requirement
174. Relinquishment condition if authority does not include a reduction requirement
Division 3 - Leases overlapping with an existing or proposed mineral development licence
Subdivision 1 - Preliminary
175. Definitions for div 3
176. Application of div 3
Subdivision 2 - Additional provisions
177. Obligation of lessee to give access to MDL holder
178. Additional requirements for later development plans for lease
179. Minister may require further negotiation
Subdivision 3 - Confidentiality of information
180. Application of sdiv 3
181. Confidentiality obligations
182. Civil remedies
PART 11 - TRANSITIONAL PROVISIONS FOR PETROLEUM AND OTHER LEGISLATION AMENDMENT ACT 2005
183. S 86 water bores
184. Decommissioning wells and bores
PART 12 - TRANSITIONAL PROVISION FOR MINES AND ENERGY LEGISLATION AMENDMENT ACT 2008
185. Provision for repeal of section 19
PART 13 - TRANSITIONAL PROVISIONS FOR AMENDMENTS UNDER GEOTHERMAL ENERGY ACT 2010
186. Land access code prevails over conditions
187. Existing compensation agreements other than for notifiable road uses
188. Existing entry notices
189. References to geothermal tenure
PART 14 - TRANSITIONAL PROVISIONS FOR MINES LEGISLATION (STREAMLINING) AMENDMENT ACT 2012
Division 1 - Preliminary
190. Definitions for pt 14
Division 2 - Transitional provisions for amendments in amending Act commencing on assent
191. Land in a 1923 Act petroleum tenure’s area taken before the commencement
192. Land in a 1923 Act petroleum tenure’s area for which notice of intention to resume given before the commencement
Division 3 - Transitional provisions for amendments in amending Act commencing by proclamation
193. Minister to decide particular applications for or about leases
194. Unfinished indications about approval of dealing
195. Undecided applications for approval of dealing
196. Deciding applications for approval of assessable transfers until commencement of particular provisions
197. Uncommenced appeals about refusal to approve particular dealing
198. Unfinished appeals about refusal to approve particular dealing
PART 15 - TRANSITIONAL PROVISIONS FOR LAND, WATER AND OTHER LEGISLATION AMENDMENT ACT 2013
199. Definitions for pt 15
200. Continuation of conversion of well
201. Drilling water observation bores or water supply bores
202. Converting wells to water supply bores
203. Minister’s consent required for particular transfers of water observation bores or water supply bores to landowners
204. Statement on approved form under s 75Q if bore drilled or well converted before the commencement
205. Statement on approved form under s 75S if water observation bore drilled before the commencement
PART 16 - TRANSITIONAL PROVISIONS FOR MINERAL AND ENERGY RESOURCES (COMMON PROVISIONS) ACT 2014
206. Continued appeal right for particular decisions
207. Existing practice manuals
PART 17 - TRANSITIONAL PROVISIONS FOR MINERAL AND ENERGY RESOURCES AND OTHER LEGISLATION AMENDMENT ACT 2020
208. Power to impose or amend condition if changed holder of lease
209. Conferences with eligible claimants or owners or occupiers started before commencement
PART 18 - TRANSITIONAL PROVISIONS FOR RESOURCES AND OTHER LEGISLATION AMENDMENT ACT 2021
210. Continuing effect of lease for renewal application
211. When renewed lease takes effect
SCHEDULE - Decisions subject to appeal
