PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 591A Exemption for production testing

PETROLEUM AND GAS (PRODUCTION AND SAFETY) ACT 2004 - SECT 591A

591A Exemption for production testing

(1) This section applies if—

(a) under section 71A or 150A , a petroleum tenure holder carries out production testing in relation to a particular petroleum well (the
"relevant well" ); or

(b) under a 1923 Act petroleum tenure, the tenure holder carries out production testing in relation to a particular petroleum well (also the
"relevant well" ).

(2) If—

(a) petroleum produced from the relevant well is coal seam gas or natural gas; and

(b) the gas is flared or vented; and

(c) the gas is, within the period provided for under subsection (3) produced as part of the production testing;

petroleum royalty is only payable on the amount of the petroleum flared or vented during the period that is more than 3,000,000m 3.

(3) For subsection (2) , the period is the shorter of the following—

(a) the sum of all periods after 31 December 2004 for which, under section 71A or 150A , or for a 1923 Act petroleum tenure, under the tenure, the production testing from the relevant well may be carried out;

(b) 13 months from the later of the following—

(i) the start of the production testing from the relevant well;

(ii) if the production testing had started before 31 December 2004, 31 December 2004.