Victorian Consolidated Legislation

Petroleum (Submerged Lands) Act 1982 - SECT 7

Petroleum pool extending into two licence areas

7. Petroleum pool extending into two licence areas



(1) Where a well-head is situated in a licence area and the well from that
well-head is inclined so as to enter a petroleum pool, being a pool that does
not extend to that licence area, at a place within an adjoining licence area
of the same licensee, any petroleum recovered through that well shall be
deemed to have been recovered in that adjoining licence area under the licence
in respect of that area.

(2) Where a petroleum pool is partly in one licence area and partly in an
adjoining licence area of the same licensee and petroleum is recovered from
that pool through a well or wells in one or both of the licence areas, there
shall be deemed to have been recovered in each of the licence areas, under the
licence in respect of that area, such proportion of all petroleum so recovered
as may reasonably be treated as being derived from that area, having regard to
the nature and probable extent of the pool, and the respective proportions
shall be determined in accordance with subsection (3).

(3) The proportions to be determined for the purposes of subsection (2) may be
determined by agreement between the licensee and the Minister or, in the
absence of agreement, may be determined by the Supreme Court on the
application of the licensee or the Minister.

(4) Where a petroleum pool is partly in a licence area and partly in an area
(in this subsection referred to as the Commonwealth licence area) in which the
licensee has authority under the Commonwealth Act to explore for, or recover,
petroleum, and petroleum is recovered from that pool through a well or wells
in the licence area, the Commonwealth licence area or both, there shall be
deemed to have been recovered in the licence area such proportion of all
petroleum so recovered as may reasonably be treated as being derived from that
area, having regard to the nature and probable extent of the pool, and that
proportion shall be determined in accordance with subsection (5).

(5) The proportion to be determined for the purposes of subsection (4) may be
determined by agreement between the licensee, the Joint Authority and the
Minister or, in the absence of agreement, may be determined by the Supreme
Court on the application of the licensee, the Joint Authority or the Minister.





(6) Where a petroleum pool is partly in a licence area and partly in an area
(in this section called the other State licence area) in which the licensee
has authority, under a corresponding law, to explore for or recover,
petroleum, and petroleum is recovered from that pool through a well or wells
in the licence area, the other State licence area or both, there shall be
deemed to have been recovered in the licence area such proportion of all
petroleum so recovered as may reasonably be treated as being derived from that
area, having regard to the nature and probable extent of the pool, and that
proportion shall be determined in accordance with subsection (7).

(7) The proportion to be determined for the purposes of subsection (6) may be
determined by agreement between the licensee, the Minister and the Minister of
the other State administering the corresponding law or, in the absence of
agreement, may be determined by the Supreme Court on the application of any of
those persons.

(8) Where-

   (a)  a petroleum pool is partly in a licence area and partly in another
        area, being an area which is outside the adjacent area and in which
        the licensee has, under the Commonwealth Act or a corresponding law,
        authority to explore for, or recover, petroleum;

   (b)  petroleum is recovered from that pool; and

   (c)  the Supreme Court of another State makes a determination, under the
        Commonwealth Act or a corresponding law, of the proportion of the
        petroleum recovered from that pool that is, for the purposes of the
        Commonwealth Act or the corresponding law, to be deemed to have been
        recovered from the other area-

the Supreme Court shall not make a determination under this section that is
inconsistent with the determination of the Supreme Court of the other State.

(9) Where-

   (a)  a petroleum pool is partly in a licence area and partly in another
        area, whether in the adjacent area or not, in respect of which another
        person has authority, whether under this Act, the Commonwealth Act or
        a corresponding law, to explore for or recover petroleum;

   (b)  a unit development agreement in accordance with section 59 is in force
        between the licensee and that other person; and

   (c)  petroleum is recovered from that pool through a well or wells in the
        licence area, the other area or both-

there shall be deemed to have been recovered in the licence area such
proportion of all petroleum so recovered as is specified in, or determined in
accordance with, the agreement.

(10) In this section, a reference to a licence, a licensee or a licensed area
shall be read as including a reference to a permit and a lease, a permittee
and a lessee or a permit area and a lease area.



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Division 2-Administration of the Commonwealth adjacent area