PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 121 Requirements for grant

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 121

121 Requirements for grant

(1) The requirements for grant are each of the following—

(a) the applicant is an eligible person;

(b) the proposed area of the proposed petroleum lease—

(i) is appropriate for the authorised activities proposed to be carried out; and

(ii) if the authorised activities relate to petroleum production—contains commercial quantities of petroleum; and

(iii) if the authorised activities relate to storage of petroleum or a prescribed storage gas—contains an adequately identified natural underground reservoir that is adequate for the proposed purpose of the lease;

(c) the conditions of the relevant authority to prospect have been substantially complied with;

(d) the Minister has approved the applicant’s proposed initial development plan for the lease;

(e) the Minister is of the opinion that the applicant is capable of carrying out authorised activities for the lease, having regard to the applicant’s—

(i) financial and technical resources; and

(ii) ability to manage petroleum exploration and production;

(f) a relevant environmental authority for the lease has been issued;

(g) the applicant has established 1 of the matters mentioned in subsection (2) ;

(h) the applicant has paid the annual rent for the first year of the proposed lease;

(i) the applicant has given, under section 488 , security for the lease.

(2) For subsection (1) (g) , the matters are any of the following—

(a) commercial petroleum production in the area of the lease is, or is likely, within 2 years after the lease is to take effect;

(b) the applicant has—

(i) entered into a contract, coordination arrangement or other arrangement (a
"relevant arrangement" ) to supply petroleum produced from the area of the lease; and

(ii) lodged a written declaration that the petroleum produced from the area of the lease will meet all or some of the petroleum required to be supplied under the relevant arrangement;

(c) the area of the lease is suitable for underground storage of petroleum or a prescribed storage gas and the storage will, or is likely to, start before the later of the following to happen—

(i) the end of 5 years after the lease is to take effect;

(ii) the end of the plan period for the applicant’s proposed development plan for the lease.

(3) The matters mentioned in subsection (1) (e) are the
"capability criteria" .

(4) A person
"satisfies" the capability criteria if the Minister forms the opinion about the person mentioned in subsection (1) (e) .