PETROLEUM AND GEOTHERMAL ENERGY RESOURCES ACT 1967 - SECT 69

PETROLEUM AND GEOTHERMAL ENERGY RESOURCES ACT 1967 - SECT 69

69 .         Unit development

        (1A)         In this section —

        Joint Authority and offshore area have the respective meanings given in the Commonwealth Act section 7.

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

            (a)         applies in relation to —

                  (i)         a petroleum pool that is partly in a particular licence area of a petroleum licensee and partly in another area, whether in the State or not, in respect of which another person has authority, whether under this Act or another written law or under the law of another State, the Northern Territory or the Commonwealth, to carry on operations for the recovery of petroleum from the pool; or

                  (ii)         a geothermal resources area that is partly in a particular licence area of a geothermal licensee and partly in another area, whether in the State or not, in respect of which another person has authority, whether under this Act or another written law or under the law of another State or of the Northern Territory, to carry on operations for the recovery of geothermal energy from the geothermal resources area;

                and

            (b)         means the carrying on of operations for the recovery of petroleum from that pool or geothermal energy from that geothermal resources area, as the case requires, under cooperative 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 or geothermal resources area, as the case requires, but nothing in this subsection derogates from the operation of section 75(2).

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

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

            (b)         a person who is lawfully entitled to carry on operations for the recovery of petroleum or geothermal energy in an area outside the State that includes part of a particular petroleum pool or particular geothermal resources area that extends into the State,

                may, for the purpose of securing the more effective recovery of petroleum from the petroleum pool or geothermal energy from the geothermal resources area, direct any petroleum licensee whose licence area includes part of the petroleum pool or any geothermal licensee whose licence area includes part of the geothermal resources area, 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 or geothermal resources area and to lodge an application in accordance with section 75 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 or geothermal resources area does not enter into such an agreement within the specified period; or

            (b)         a 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 75,

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

        (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 or geothermal resources area is to be submitted by a licensee under subsection (4), the Minister may, by instrument in writing served on the licensee, give to that licensee such directions as the Minister thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool or geothermal energy from the geothermal resources area.

        (6)         Where a person is —

            (a)         the petroleum licensee in respect of 2 or more licence areas in each of which there is part of a particular petroleum pool; or

            (b)         the geothermal licensee in respect of 2 or more licence areas in each of which there is part of a particular geothermal resources area,

                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 or geothermal energy from the geothermal resources area.

        (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 he thinks necessary for the purpose of securing the more effective recovery of petroleum from the petroleum pool or geothermal energy from the geothermal resources area.

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

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

        (10)         In this section, dealing means a dealing to which section 75 applies.

        (11)         If a petroleum pool extends, or is reasonably believed by the Minister to extend, from an area of the State into —

            (a)         lands to which other written laws or the laws of another State or of a Territory relating to the exploitation of petroleum resources apply; or

            (b)         the adjacent area of an adjoining State or Territory; or

            (c)         the offshore area,

                each Minister concerned shall consult concerning the exploitation of the petroleum pool with any other Minister concerned and with the appropriate authority of the other State or the Territory if paragraph (a) or (b) applies and with the Joint Authority if paragraph (c) applies.

        (11a)         If a geothermal resources area extends, or is reasonably believed by the Minister to extend, from an area of the State into —

            (a)         lands to which other written laws or the laws of another State or of a Territory relating to the exploitation of geothermal energy resources apply; or

            (b)         the adjacent area of an adjoining State or Territory,

                each Minister concerned shall consult concerning the exploitation of the geothermal resources area with any other Minister concerned and with the appropriate authority of the other State or the Territory.

        (12)         Where subsection (11) applies in relation to a petroleum pool or subsection (11a) applies in relation to a geothermal resources area, a Minister shall not approve an agreement under this section, or give a direction under this section, in relation to that petroleum pool or geothermal resources area except with the approval of any other Minister concerned and any State or Territory authority concerned and with the approval of the Joint Authority if subsection (11)(c) applies.

        [Section 69 amended: No. 12 of 1990 s. 52; No. 35 of 2007 s. 57; No. 7 of 2017 s. 23.]

        [Heading inserted: No. 35 of 2007 s. 58.]