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PETROLEUM AND GEOTHERMAL ENERGY RESOURCES ACT 1967 - SECT 91

PETROLEUM AND GEOTHERMAL ENERGY RESOURCES ACT 1967 - SECT 91

91 .         Work practices

        (1)         A permittee, holder of a drilling reservation, lessee or licensee shall carry out —

            (a)         all petroleum exploration operations and operations for the recovery of petroleum; or

            (b)         all geothermal energy resources exploration operations and operations for the recovery of geothermal energy,

                as the case requires, in the permit area, drilling reservation, lease area or licence area in a proper and workmanlike manner and in accordance with good oil-field practice.

        (1a)         Subsections (2) and (2a) have effect without limiting the generality of subsection (1) but subject to any authorisation, requirement or direction given or made by or under this Act.

        (2)         A petroleum permittee, holder of a petroleum drilling reservation, petroleum lessee or petroleum licensee shall —

            (a)         control the flow and prevent the waste or escape in the permit area, drilling reservation, lease area or licence area of petroleum or water; and

            (b)         prevent the escape in the permit area, drilling reservation, lease area or licence area of any mixture of water or drilling fluid with petroleum or any other matter; and

            (c)         prevent damage to petroleum-bearing strata in an area, whether in the State or not, in respect of which the permit, drilling reservation, lease or licence is not in force; and

            (d)         keep separate —

                  (i)         each petroleum pool discovered in the permit area, drilling reservation, lease area or licence area; and

                  (ii)         such of the sources of water, if any, discovered in that area as the Minister, by instrument in writing served on that person, directs;

                and

            (e)         prevent water or any other matter entering any petroleum pool through wells in the permit area, drilling reservation, lease area or licence area except when required by, and in accordance with, good oil-field practice.

        (2a)         A geothermal permittee, holder of a geothermal drilling reservation, geothermal lessee or geothermal licensee shall —

            (a)         control the flow and prevent the waste or escape in the permit area, drilling reservation, lease area or licence area of geothermal energy resources or water; and

            (b)         prevent the escape in the permit area, drilling reservation, lease area or licence area of any mixture of water or drilling fluid with geothermal energy resources or any other matter; and

            (c)         prevent damage to geothermal energy resources in an area, whether in the State or not, in respect of which the permit, drilling reservation, lease or licence is not in force; and

            (d)         keep separate —

                  (i)         each geothermal resources area discovered in the permit area, drilling reservation, lease area or licence area; and

                  (ii)         such of the sources of water, if any, discovered in that area as the Minister, by instrument in writing served on that person, directs;

                and

            (e)         except for the purposes of the recovery of geothermal energy under this Act and when required by, and in accordance with, good oil-field practice — prevent water or any other matter entering any geothermal resources area through wells in the permit area, drilling reservation, lease area or licence area.

        (3)         A person who is the holder of a special prospecting authority or an access authority shall carry out all petroleum exploration operations or geothermal energy resources exploration operations, as the case requires, in the area in respect of which the special prospecting authority or access authority is in force in a proper and workmanlike manner and in accordance with good oil-field practice.

        (4)         It is a defence if a person charged with failing to comply with a provision of this section, or a defendant in an action arising out of a failure by the defendant to comply with a provision of this section, proves that he took all reasonable steps to comply with that provision.

        Penalty for an offence under subsection (1), (2), (2a) or (3): a fine of $10 000.

        [Section 91 amended: No. 12 of 1990 s. 72; No. 78 of 1990 s. 7; No. 28 of 1994 s. 40; No. 13 of 2005 s. 7; No. 35 of 2007 s. 63; No. 42 of 2010 s. 62(8).]