PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 205 Meaning of storage agreement and existing user

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 205

205 Meaning of storage agreement and existing user

(1) A petroleum lease holder may agree (a
"storage agreement" ) with someone else (an
"existing user" ) to use a natural underground reservoir in the area of the lease to store petroleum or a prescribed storage gas.

Note—

See also section 220 (Preferred tenderer may make storage agreements).

(2) However, the lease holder can not enter into a storage agreement for any of the reservoir’s storage capacity already agreed to be provided under another storage agreement.

(3) The existing user may agree with someone else to store petroleum or a prescribed storage gas in the reservoir to the extent of its storage capacity agreed to be used under the existing user’s storage agreement with the lease holder.

(4) However, the existing user may make the agreement only if it complies with the storage agreement between the lease holder and the existing user.

(5) An agreement under subsection (3) is also a
"storage agreement" .

(6) A person for whom petroleum or a prescribed storage gas is, or is entitled to be, stored under a storage agreement under subsection (3) is also an
"existing user" of the reservoir.