PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 208 Application of sdiv 2

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 208

208 Application of sdiv 2

(1) This subdivision applies to a petroleum lease holder or an existing user who has available storage capacity for a natural underground reservoir.

(2) A petroleum lease holder has
"available storage capacity" for a natural underground reservoir if the reservoir is in the area of the lease and it has, or is likely to have, storage capacity that—

(a) the lease holder has not already agreed to provide under a storage agreement that is in force (the
"contracted capacity" ); and

(b) does not interfere with the carrying out of authorised activities for the lease; and

(c) is either—

(i) spare; or

(ii) would, if additions of plant were made, or works carried out to increase the reservoir’s storage capacity, be spare; and

Note—

Storage capacity mentioned in subparagraph (ii) is commonly called developable capacity.

(d) is technically and practicably feasible, safe and reliable to use.

(3) However, the contracted capacity, or a part of the contracted capacity, becomes available storage capacity again if—

(a) the existing user of the reservoir gives the lease holder a notice stating the user no longer requires that capacity; and

(b) the contracted capacity would otherwise be available storage capacity under subsection (2) .

(4) A notice under subsection (3) (a) may be given for all or a stated part of the contracted capacity.

(5) An existing user of a natural underground reservoir has
"available storage capacity" if the reservoir has, or is likely to have, storage capacity agreed to be provided to the existing user under a storage agreement that the existing user is not using and does not expect to use.