(i) if it was produced
under a petroleum tenure or 1923 Act petroleum tenure—in the production of
petroleum from that tenure; or
(ii) if the petroleum is coal seam gas—by
the petroleum producer for mining the coal that produced the gas; or
(c)
that, before the petroleum was produced in the State, it was produced outside
the State and injected or reinjected into a natural underground reservoir in
the State; or
(e) the petroleum is coal seam gas on which royalty
under the Mineral Resources Act is payable; or
(f) the petroleum was flared
or vented as part of testing for the presence of petroleum during the drilling
of a well.
(2) However—
(a) subsection (1) ceases to apply if, under
chapter 2 , part 6 , division 3 , the petroleum becomes the property of the
State; and
(b) subsection (1) (c) does not apply if, after the petroleum
royalty was paid, property in the petroleum is taken to have passed to the
State under chapter 2 , part 6 , division 3 .
(3) Despite subsection (1) (b)
(ii) , if the first underground mining of coal in a mining lease commenced
before 31 December 2004, petroleum produced on the mining lease and used
beneficially for mining under the mining lease is exempt from petroleum
royalty.
(4) However, subsection (5) applies if the petroleum mentioned in
subsection (1) (b) (ii) or subsection (3) is used to generate electricity that
is—
(a) partly used for mining under the mining lease; and
(b) partly used
for another purpose.
(5) Subsection (1) (b) (ii) and subsection (3) apply
only to the proportion of the petroleum that is equivalent to the proportion
of the electricity generated from the petroleum that is used for mining under
the mining lease.
(6) In this section—
"petroleum tenure" includes a 1923 Act petroleum tenure.
