PETROLEUM ACT 1998

Victorian Consolidated Legislation

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PETROLEUM ACT 1998

No. 96 of 1998
Version incorporating amendments as at 4 June 2008

TABLE OF PROVISIONS

Section Page

PART 1-PRELIMINARY MATTERS

1. Purpose
2. Commencement
3. Objectives
4. General definitions
5. Reference provisions
6. Meaning of petroleum
7. Meaning of petroleum exploration
8. Meaning of petroleum production
9. Act binds the Crown
10. Relationship of this Act to certain other Acts

PART 2-GENERAL MATTERS

11. Application of this Act
12. Minister may exempt land from the application of this Act
13. Petroleum is the property of the Crown
14. Crown retains Crown land petroleum rights
15. Offence to explore for petroleum unless authorised
16. Offence to produce petroleum unless authorised
17. Petroleum becomes the property of the person extracting it

PART 3-EXPLORATION PERMITS

Division 1-Rights conferred by permit

18. Rights conferred by permit

Division 2-Process for granting permits

19. Minister may invite tender applications for exploration permits
20. Application for permits
21. Chief factors to be considered in deciding between competing offers
22. Notice to be given to applicants
23. Minister may make new grant if former grant refused
24. Procedure if initial invitation does not result in the granting
of a permit
25. Restrictions on permit area
26. Term of permit
27. Key objects of work programs

Division 3-Renewals

28. Renewal of permit
29. Application for renewal
30. Other factors to be considered in renewing permits
31. Permit not to be renewed if key objects not achieved
32. Renewed permit area to be reduced
33. Key objects of work programs
34. Variation of work programs for renewed permits

Division 4-Ministerial directions if petroleum discovered

35. Minister may give directions if petroleum discovered

PART 4-RETENTION LEASES

36. Purpose of a retention lease
37. Rights conferred by lease
38. Right to apply for lease
39. Details to be supplied with application
40. Factors determining grant of application
41. Restrictions on area to which lease applies
42. Term of lease
43. Procedure if lease not to be granted
44. Minister may require review of commercial viability
45. Minister may give directions if extraction viable

PART 5-PRODUCTION LICENCES

Division 1-Rights conferred by licence

46. Rights conferred by licence

Division 2-Issue of licences to holders of permits or leases

47. Right to apply for licence
48. Details to be supplied with application
49. Factors determining grant of application

Division 3-Grant of licences by tender

50. Minister may invite tender applications
51. Applications
52. Procedure for deciding between competing bids
53. Notice to be given to applicants
54. Refund of deposits
55. Minister may make new grant if former grant refused
56. Extension of time in which to make licence payment
57. Minister must not issue licence unless cash bid paid

Division 4-General provisions

58. Restrictions on area to which licence applies
59. Term of licence

Division 5-Directions concerning the rate of extraction or
recovery of petroleum

60. Direction if petroleum not being extracted/recovered to the Minister's satisfaction
61. Form of direction
62. Licence holder must comply with directions

Division 6-Petroleum production development plan

63. Petroleum production development plan
64. Development plan to be lodged before production can start
65. Development plan must be adhered to
66. Minister may require variation of development plan
67. Minister may permit variation of development plan

Division 7-Underground storage of petroleum

68. Storage development plan
69. Storage development plan to be lodged before operations can start
70. Storage development plan must be adhered to
71. Minister may require variation of storage development plan
72. Minister may permit variation of development plan

Division 8-Underground storage of petroleum by third party

73. Application of this Division
74. Application to excise reservoir from a licence area
75. Minister must seek comments from licence holder
76. Restrictions on ability of Minister to grant application
77. Minister may refer application to advisory panel
78. Procedure if application granted

Division 9-Unit development

79. Unit development
80. Consultation concerning unit development must take place if
part of pool interstate
81. Minister may amend licence for unit development

Division 10-Gathering lines

82. Meaning of gathering line
83. Minister may exempt gathering line from Pipelines Act

PART 6-SPECIAL ACCESS AUTHORISATIONS

84. Special access authorisation
85. Application for authorisation
86. General criteria the Minister must consider
87. Criteria that apply to permit, lease and licence areas
88. Exception to section 87.
89. Minister may vary area to which authorisation applies
90. Authorisation does not give exclusive rights
91. Term of authorisation
92. Extension of term of authorisation
93. Permit, lease or licence holder not liable for actions of authorisation holder
94. Authorisation holder must give data to the Minister
95. Authorisation holder must give data to permit, lease or licence holder

PART 7-PROVISIONS APPLYING TO AUTHORITIES GENERALLY

Division 1-Applications

96. Application for authorities
97. Work programs
98. Applications are not transferable
99. Existing permits and leases continue until renewal applications etc. decided

Division 2-Conditions

100. Conditions that may apply to authorities
101. Statutory condition of authority
102. Minister may vary conditions unilaterally
103. Minister may vary conditions by consent
104. Variation of conditions on renewal, consolidation or transfer
105. Suspension of conditions
106. Term of authority may be extended if condition suspended

Division 3-Transfers of authorities

107. Transfers
108. Matters Minister must consider in assessing transfer application
109. Execution of transfer document insufficient to create interest
110. Partial transfers of permits and licences

Division 4-Surrender or cancellation of authorities

111. Surrender of authority
112. Partial surrender of authority
113. Cancellation of authority
114. Additional grounds for the cancellation or partial cancellation
of production licence
115. Procedure to be followed before authority cancelled
116. Minister may give directions if authority expires or is
surrendered or cancelled

Division 5-Planning matters

117. Definition of planning scheme
118. Exploration under authority overrides planning schemes
119. Production operations also override planning schemes
120. Alternative approvals
121. Amendments to planning schemes to facilitate exploration
and production

Division 6-Miscellaneous matters

122. Minister must publish certain details if authority granted
123. Variation of an authority
124. Consolidation of adjoining authorities
125. Excision of area does not affect authority
126. Expedited procedure for replacement of invalidated title
127. Occupiers liability

PART 8-COMPENSATION

128. Consent of, or compensation agreement with, owner etc.
needed before operation on private land starts
129. What compensation is payable for-private/native title land
130. Limit on total amount of compensation
131. Compensation not payable for petroleum
132. What compensation is payable for-Crown land
133. Time limit on compensation claims
134. Determination of disputes-private/native title land
135. Determination of disputes-Crown land
136. Native Title Act rights prevail

PART 9-CONSENT/NOTICE REQUIRED BEFORE OPERATIONS ALLOWED ON LAND

Division 1-Wilderness crown land

137. Petroleum operations on wilderness land barred

Division 2-Operations requiring prior consent

138. Consent of Minister needed to carry out petroleum operations
on any land
139. Petroleum operations on restricted Crown land
140. Petroleum operations on water authority land
141. Petroleum operations on highways, roads etc.
142. Provisions applying to consents
143. Right to seek review of refusal to give consent

Division 3-Operations requiring notice

144. Operations on unrestricted Crown land
145. Notice to be given before operation carried out on any land

Division 4-Other matters

146. Areas of aboriginal significance

Division 5-Statement of pre-operation requirements

147. Requirements to be complied with before petroleum operation carried out

PART 10-ROYALTIES AND RENT

148. Application of this Part
149. Liability for, and rate of, royalty
150. Rate of royalty
151. Meaning of well-head
152. How value to be determined
153. How quantity to be determined
154. When royalty must be paid
155. Circumstances in which royalty is not payable
156. Minister may vary royalty
157. Minister may increase royalty rate to 10%
158. Royalty payable if excess petroleum recovered from reservoir
159. Penalty for late payment
160. Rent payable in relation to Crown land

PART 11-OTHER OBLIGATIONS ON THE HOLDERS OF AUTHORITIES

Division 1-Conduct of operations etc.

161. Operation plan to be prepared
162. Plan must be observed in carrying out operation
163. Minister may permit variation of operation plan
164. Operation to be conducted in proper manner
165. Other specific obligations concerning conduct of operations
166. Maintenance etc. of property
167. Authority holder must not interfere with other rights
168. Equipment must be removed once authority ceases
169. Minister may remove equipment
170. Rehabilitation
171. Insurance must be held

Division 2-Rehabilitation bond

172. Definition of rehabilitation bond
173. Requirement to take out rehabilitation bond
174. Minister may require increased rehabilitation bond
175. Minister may carry out rehabilitation
176. Return of bond if rehabilitation satisfactory

Division 3-Information to be given to the Minister

177. Minister must be told if petroleum discovered
178. Minister may require certain information if petroleum
discovered
179. Authority holder must provide information to Minister
180. Minister may require position of wells etc. to be surveyed
181. Minister may require person to provide information on
petroleum operation
182. False information not to be given

PART 12-RELEASE OF INFORMATION OBTAINED OR GIVEN UNDER THIS ACT

183. Meaning of release and information
184. Meaning of interpretive information
185. Meaning of information collection date
186. Information that is not to be released
187. Information about applications that may be released
188. Release of information about area that is no longer an
authority area
189. Release of factual information concerning licence areas
190. Release of factual information concerning other authority
areas
191. Restriction on release of information collected so that it could
be sold
192. Earlier release of information if consent given
193. Release of interpretive information relating to current
authorities
194. Procedure to be followed before interpretive information is released
195. Right to seek review of disputed release decision
196. Minister may give information etc. to other Ministers
197. Restriction on obtaining information to meet work program obligation

PART 13-ENFORCEMENT

Division 1-Inspections

198. Authorisation of inspectors
199. Monitoring compliance with this Act
200. Emergencies
201. Offence-related searches and seizures
202. Occupier to be given copy of consent
203. Search warrant
204. Announcement before entry
205. Copy of warrant to be given to occupier
206. Receipt must be given for any thing seized
207. Copies of certain seized things to be given
208. Use of equipment to examine or process things
209. Use or seizure of electronic equipment at premises
210. Compensation for damage
211. Return of seized things
212. Magistrates' Court may extend period
213. Power of inspector to require information or documents
214. Protection against self-incrimination
215. Offence to obstruct inspector

Division 2-Improvement and prohibition notices

216. Improvement notice
217. Prohibition notice
218. Minister may obtain enforcement order
219. Form of notices
220. Right to review
221. Defences to charge of failing to comply with a notice
222. Minister may remedy failure to comply with improvement
notice

Division 3-Offences concerning corporations etc.

223. Increased maximum fine for corporations
224. Corporation deemed to have the knowledge of its officers
225. Certain offences by corporations may also be offences by
officers
226. Offences by partners
227. Offences by joint venturers
228. Offences by employees and agents
229. Default penalties

PART 14-ADMINISTRATIVE MATTERS

Division 1-Petroleum register

230. Establishment of register
231. Need for registration
232. Other documents to be registered
233. Entries in register on devolution of title
234. Registration
235. Effect of registration
236. Inspection of register and documents
237. Minister's certificates
238. Minister may make corrections to register
239. Right to review of register entries
240. Offences relating to the register

Division 2-Other administrative matters

241. Minister may require further information
242. Form of documents
243. Pecuniary interest statement
244. Department surveys
245. Delegation
246. Applications not to be processed unless fee paid

PART 15-MISCELLANEOUS MATTERS

247. Officials must not disclose information
248. Fees and penalties debts due to the State
249. Minister may vary geodetic system
250. Codes of practice
251. Use of codes of practice in proceedings

PART 16-REGULATIONS

252. Regulations

PART 17-CONSEQUENTIAL, SAVINGS AND
TRANSITIONAL PROVISIONS

253. Repeal of former Act
254. Effect of repeal on existing permits
255. Effect of repeal on existing leases
256. Release of information provided under the Petroleum
Act 1958.
257. Consequential amendments to other Acts
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ENDNOTES
1. General Information
2. Table of Amendments
3. Explanatory Details

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