Victorian Consolidated Legislation

Petroleum (Submerged Lands) Act 1982 - SECT 59

Unit development

59. Unit development



(1) In this section, the expression unit development-

   (a)  applies in relation to a petroleum pool that is partly in a particular
        licence area of a licensee and partly in a licence area of another
        licensee or in an area that is not within the adjacent area but in
        which a person other than the first-mentioned licensee is lawfully
        entitled to carry on operations for the recovery of petroleum from the
        pool; and

   (b)  means the carrying on of operations for the recovery of petroleum from
        that pool under co-operative arrangements between the persons entitled
        to carry on such operations in each of those areas.

(2) A licensee may from time to time enter into an agreement in writing for or
in relation to the unit development of a petroleum pool, but nothing in this
subsection derogates from the operation of section 81(2).

(3) The Minister of his or her own motion or on application made to him or her
in writing by-

   (a)  a licensee in whose licence area there is a part of a particular
        petroleum pool; or

   (b)  a person who is lawfully entitled to carry on operations for the
        recovery of petroleum in an area outside the adjacent area that
        includes part of a particular petroleum pool that extends into the
        adjacent area-

may, for the purpose of securing the more effective recovery of petroleum from
the petroleum pool, by instrument in writing served on the licensee, direct
any licensee whose licence area includes part of the petroleum pool, by
instrument in writing served on the licensee, to enter into an agreement in
writing, within the period specified in the instrument, for or in relation to
the unit development of the petroleum pool and to lodge an application in
accordance with section 81 for approval of any dealing to which the agreement
relates.

(4) Where-

   (a)  a licensee who is directed, under subsection (3), to enter into an
        agreement for or in relation to the unit development of a petroleum
        pool does not enter into such an agreement within the specified
        period; or

   (b)  the licensee enters into such an agreement but an application for
        approval of a dealing to which the agreement relates is not lodged
        with the Minister or, if an application is so lodged, the dealing is
        not approved under section 81-

the Minister may, by instrument in writing served on the licensee, direct the
licensee to submit to the Minister, within the period specified in the
instrument, a scheme for or in relation to the unit development of the
petroleum pool.

(5) At any time after the expiration of the period within which a scheme for
or in relation to the unit development of a petroleum pool is to be submitted
by a licensee under subsection (4), the Minister may, by instrument in writing
served on the licensee, give to the licensee such directions as the Minister
thinks necessary for the purpose of securing the more effective recovery of
petroleum from the petroleum pool.





(6) Where a person is the licensee in respect of two or more licence areas in
each of which there is part of a particular petroleum pool, the Minister may,
by instrument in writing served on the licensee, give to the licensee such
directions as the Minister thinks necessary for the purpose of securing the
more effective recovery of petroleum from the petroleum pool.

(7) Where an agreement under this section is in force or the Minister has
given directions under subsection (5) or (6), the Minister may, having regard
to additional information that has become available, by instrument in writing
served on the licensee or licensees concerned, give to the licensee or
licensees such directions, or further directions, as the case may be, as the
Minister thinks necessary for the purpose of securing the more effective
recovery of petroleum from the petroleum pool.

(8) The Minister shall not give a direction under subsection (6) or (7) unless
he or she has given to the licensee or licensees concerned an opportunity to
confer with the Minister concerning the proposed direction.

(9) Directions under subsection (5), (6) or (7) may include directions as to
the rate at which petroleum is to be recovered.

(10) In this section, dealing means a dealing to which section 81 applies.









(11) The Minister shall-

   (a)  if a petroleum pool extends, or is reasonably believed by him or her
        to extend, from the adjacent area into lands to which the laws of
        another State relating to the exploitation of petroleum resources
        apply, consult with the appropriate authority of that State concerning
        the exploitation of the petroleum pool;

   (b)  if a petroleum pool extends, or is reasonably believed by him or her
        to extend, from the adjacent area into the adjacent area in respect of
        a State other than Victoria, consult with the Designated Authority
        under the Commonwealth Act in respect of that State concerning the
        exploitation of the petroleum pool; or

   (c)  if both paragraph (a) and paragraph (b) apply, comply with both of
        those paragraphs.

(12) Where subsection (11) applies in relation to a petroleum pool, the
Minister shall not approve an agreement under this section, or give a
direction under this section, in relation to that petroleum pool except with
the approval of any other authority or Designated Authority required by that
subsection to be consulted.

Division 3A-Infrastructure licences