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PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 234 Arrangement to coordinate petroleum activities

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 234

Arrangement to coordinate petroleum activities

234 Arrangement to coordinate petroleum activities

(1) The following persons may make an arrangement about a matter mentioned in subsection (2)
(a) the holder of a 1923 Act lease;
(b) the applicant for, or the holder of, a petroleum lease;
(c) the applicant for, or the holder of, a mining lease.
(2) For subsection (1) , the matters are—
(a) the orderly—
(i) production of petroleum from a natural underground reservoir under more than 1 of the leases; or
(ii) carrying out of an authorised activity for any of the leases by any party to the arrangement; and
(b) petroleum production from more than 1 natural underground reservoir under more than 1 of the leases.
(3) The arrangement may—
(a) be for any term; and
(b) if each holder of a relevant mining or petroleum lease agrees, provide for a matter that is inconsistent with, to the extent mentioned in subsection (3A) , or not provided for under the leases or their conditions; and
(c) provide for—
(i) the subleasing of, or of an interest in, a relevant petroleum lease to a party to the arrangement or someone else; and
(ii) a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement.
(3A) For subsection (3) (b) , the arrangement may only be inconsistent with 1 or more of the following—
(a) when a petroleum lease holder must start petroleum production under section 154 (1) ;
(b) the development plan or the proposed development plan for a lease mentioned in subsection (1) ;
(c) the conditions of the lease imposed under—
(i) the 1923 Act , section 44 (1) (d) ; or
(ii) section 123 (3) ; or
(iii) the Mineral Resources Act , section 276 (1) (m) or 276 (3) .
(4) A person other than the holder, or proposed holder, of a coordinated lease may also be a party to a coordination arrangement.
(5) A coordination arrangement has no effect unless it is approved by the Minister under section 236 .
(6) In this section—


"authorised activity" , for—
(a) a mining lease, means an activity that, under the Mineral Resources Act , is an authorised activity for the lease; or
(b) a 1923 Act lease, means an activity that, under the 1923 Act , is an authorised activity for the lease.

"coordinated lease" means—
(a) 2 or more petroleum leases; or
(b) 2 or more 1923 Act leases; or
(c) 1 or more petroleum leases and 1 or more 1923 Act leases, in any combination; or
(d) 1 or more mining lease and 1 or more petroleum leases or 1923 Act leases, in any combination.
Notes—
1 Under the Mineral Resources Act , a coal or oil shale mining lease holder has a limited entitlement to mine and use incidental coal seam gas, which is
"petroleum" . See section 10 of this Act and the Mineral Resources Act , chapter 8 , part 8 , division 1 .
2 A coordination arrangement may provide for mining or production from coextensive natural underground reservoirs. See section 114 and the Mineral Resources Act , section 318CQ .

"production" includes mining, extraction, production or release carried out under a mining lease.