Petroleum and Gas (Production and Safety) Act 2004


Queensland Crest
Petroleum and Gas (Production and Safety) Act 2004

An Act about exploring for, recovering and transporting by pipeline, petroleum and fuel gas and ensuring the safe and efficient carrying out of those activities, and for other purposes

Chapter 1 Preliminary

Part 1 Introduction

1Short title

This Act may be cited as the Petroleum and Gas (Production and Safety) Act 2004.

2Commencement

(1)Section 968, to the extent it inserts part 19, division 6, subdivisions 1 and 2 in the Mineral Resources Act commences on the date of assent.
(2)Otherwise, this Act commences on a day to be fixed by proclamation.

Part 2 Purpose and application of Act

3Main purpose of Act

(1)The main purpose of this Act is to facilitate and regulate the carrying out of responsible petroleum activities and the development of a safe, efficient and viable petroleum and fuel gas industry, in a way that—
(a)manages the State’s petroleum resources—
(i)in a way that has regard to the need for ecologically sustainable development; and
(ii)for the benefit of all Queenslanders; and
(b)enhances knowledge of the State’s petroleum resources; and
(c)creates an effective and efficient regulatory system for the carrying out of petroleum activities and the use of petroleum and fuel gas; and
(d)encourages and maintains an appropriate level of competition in the carrying out of petroleum activities; and
(e)creates an effective and efficient regulatory system for the construction and operation of pipelines; and
(f)ensures petroleum activities are carried on in a way that minimises conflict with other land uses; and
(g)optimises coal seam gas production and coal or oil shale mining in a safe and efficient way; and
(h)appropriately compensates owners or occupiers of land; and
(i)encourages responsible land management in the carrying out of petroleum activities; and
(j)facilitates constructive consultation with people affected by activities authorised under this Act; and
(k)regulates and promotes the safety of persons in relation to operating plant.
(2)In this section—
petroleum activities means—
(a)the exploration, distillation, production, processing, refining, storage and transport of petroleum; and
(b)the distillation, production, processing, refining, storage and transport of fuel gas; and
(c)authorised activities for petroleum authorities; and
(d)other activities authorised under this Act for petroleum authorities.

3ASecondary purpose—facilitation of Geothermal Energy Act 2010 and Greenhouse Gas Storage Act 2009

(1)Another purpose of this Act is to facilitate the operation of the Geothermal Energy Act 2010 (the Geothermal Act) and the Greenhouse Gas Storage Act 2009 (the GHG storage Act).
(2)The Geothermal Act is facilitated by—
(a)applying provisions of this Act about safety to particular authorised activities for geothermal tenures under that Act; and
(b)applying provisions of this Act about investigations and some of its provisions about enforcement for that Act.
(3)The GHG storage Act is facilitated by—
(a)providing for survey licences to be able to be granted for potential pipelines for GHG streams; and
(b)providing for pipeline licences to be able to granted for GHG streams; and
(c)applying provisions of this Act about safety to particular authorised activities for authorities under that Act; and
(d)applying provisions of this Act about investigations and some of its provisions about enforcement for that Act.

4Act binds all persons

(1)This Act binds all persons, including the State, and, to the extent the legislative power of the Parliament permits, the Commonwealth and the other States.
(2)However, the Commonwealth or a State can not be prosecuted for an offence against this Act.

5Application of Act to coastal waters of the State

(1)This Act applies to the coastal waters of the State as if the coastal waters of the State were part of the State.
(2)However, this Act does not apply to the adjacent area under the Petroleum (Submerged Lands) Act 1982.

6Relationship with Mineral Resources Act

(1)This section does not apply to a coal or oil shale mining tenement.

Note—

See also the Mineral Resources Act, section 3A (Relationship with petroleum legislation).

For the relationship between this Act and the Mineral Resources Act in relation to coal or oil shale mining tenements, see chapter 3 (Provisions for coal seam gas).

(2)The Mineral Resources Act does not limit or otherwise affect—
(a)the power to grant or renew a petroleum authority over land (the overlapping land) in the area of a mining tenement; or
(b)a petroleum authority already granted over land (also the overlapping land) in the area of an existing mining tenement.
(3)However—
(a)if the petroleum authority is a pipeline licence or petroleum facility licence—it is subject to section 400 or 440; and
(b)if the petroleum authority is another type of petroleum authority—it is subject to subsections (4) to (6).
(4)If the mining tenement is a mining lease (other than a transportation mining lease), an authorised activity for the petroleum authority may be carried out on the overlapping land only if—
(a)the mining lease holder has agreed in writing to the carrying out of the activity; and
(b)a copy of the agreement has been lodged; and

Note—

For other relevant provisions about lodging documents, see section 851AA.
(c)the agreement is still in force.
(5)If the mining tenement is an exploration permit, mineral development licence or transportation mining lease and the petroleum authority is an authority to prospect, an authorised activity for the petroleum authority may be carried out on the overlapping land only if—
(a)the mining tenement holder has agreed in writing to the carrying out of the activity, a copy of the agreement has been lodged and the agreement is still in force; or
(b)carrying out the activity does not adversely affect the carrying out of an authorised activity for the tenement that has already started.
(6)If the mining tenement is an exploration permit or a mineral development licence and the petroleum authority is a petroleum lease, an authorised activity for the mining tenement may be carried out on the overlapping land only if—
(a)the petroleum lease holder has agreed in writing to the carrying out of the activity; and
(b)a copy of the agreement has been lodged; and
(c)the agreement is still in force.
(7)In this section—
transportation mining lease means a mining lease granted under the Mineral Resources Act, section 316.

6ARelationship with Nature Conservation Act 1992

This Act is subject to the Nature Conservation Act 1992, sections 27 and 70QA.

6BRelationship with Geothermal Act and GHG storage Act

The relationship between this Act, the Geothermal Act and the GHG storage Act and authorities under them is provided for under—
(a)chapter 3A; and
(b)the Geothermal Act, chapter 5; and
(c)the GHG storage Act, chapter 4.

6BA Relationship with Common Provisions Act

The relationship between this Act and the Common Provisions Act is provided for under the Common Provisions Act, section 6.

6CDeclaration for Commonwealth Act

A petroleum authority is declared not to be personal property under the Personal Property Securities Act 2009 (Cwlth).

7Act does not affect other rights or remedies

(1)Subject to sections 294, 563A and 856 and chapter 3, part 8, this Act does not affect or limit a civil right or remedy that exists apart from this Act, whether at common law or otherwise.
(2)Without limiting subsection (1), compliance with this Act does not necessarily show that a civil obligation that exists apart from this Act has been satisfied or has not been breached.
(3)In addition, a breach of an obligation under this Act does not, of itself, give rise to an action for breach of statutory duty or another civil right or remedy.
(4)This Act does not limit a court’s powers under the Penalties and Sentences Act 1992 or another law.

8Native title

(1)This section applies for applying this Act to land where native title exists.
(2)A native title holder within the meaning of the Commonwealth Native Title Act, section 224 has the procedural and other rights that the holder has under that Act.
(3)Subsection (2) applies despite any other provision of this Act.

Part 3 Interpretation

Division 1 Dictionary

9Definitions

The dictionary in schedule 2 defines particular words used in this Act.

Division 2 Key definitions

10Meaning of petroleum

(1)Petroleum is—
(a)a substance consisting of hydrocarbons that occur naturally in the earth’s crust; or
(b)a substance necessarily extracted or produced as a by-product of extracting or producing a hydrocarbon mentioned in paragraph (a); or
(c)a fluid that—
(i)is extracted or produced from coal or oil shale by a chemical or thermal process or that is a by-product of that process; and
(ii)consists of, or includes, hydrocarbons; or

Example of a fluid that is petroleum under paragraph (c)—

mineral (f)
(d)another substance prescribed under a regulation, consisting of, or including, hydrocarbons; or
(e)a gas, that occurs naturally in the earth’s crust, as prescribed under a regulation.
(2)A substance mentioned in subsection (1)(c) is a gasification or retorting product.
(3)To remove any doubt, it is declared that petroleum does not include any of the following—
(a)alginite;
(b)coal;
(c)lignite;
(d)peat;
(e)oil shale;
(f)torbanite;
(g)water.
(4)A substance does not cease to be petroleum merely because it is injected or reinjected into a natural underground reservoir.
(5)To remove any doubt, it is declared that, for this Act and petroleum authorities under it, this section preserves, for this Act, the effect of section 150(2) and (3) of the 1923 Act.
(6)In this section—
hydrocarbon means a hydrocarbon in a gaseous, liquid, or solid state.

11Meaning of LPG and fuel gas

(1)LPG, also called ‘LP gas’ and ‘liquefied petroleum gas’, is a substance that—
(a)is in a gaseous state at standard temperature and pressure; and
(b)is predominately propane, propylene or butane; and
(c)has been processed to be suitable for use by consumers.
(2)Fuel gas is—
(a)LPG; or
(b)processed natural gas; or
(c)another substance prescribed under a regulation that is similar to LPG or processed natural gas.
(3)In this section—
processed natural gas means a substance that—
(a)is in a gaseous state at standard temperature and pressure; and
(b)consists of naturally occurring hydrocarbons and other substances; and
(c)is more than half, by volume, methane; and
(d)has been processed to be suitable for use by consumers of fuel gas.
standard temperature and pressure means an absolute pressure of 101.325kPa at a temperature of 15ºC.

12What is a prescribed storage gas

A prescribed storage gas is any of the following—
(a)a gas associated with, or that results from, petroleum production;

Example—

fuel gas produced at a processing plant
(b)another gas prescribed under a regulation as being suitable for storage in a natural underground reservoir.

Example of gases suitable for storage in a natural underground reservoir—

gases produced from a waste disposal tip

13What is a natural underground reservoir

(1)A natural underground reservoir is a part of a geological formation or structure—
(a)in which petroleum or another gas prescribed under a regulation has accumulated; or
(b)that is suitable to store petroleum or a prescribed storage gas.
(2)A geological formation or structure mentioned in subsection (1) does not cease to be a natural underground reservoir merely because it has been modified for petroleum production or storage or to store a prescribed storage gas.
(3)In this section—
geological formation includes a coal seam.

14What is exploring for petroleum

Exploring, for petroleum, is carrying out an activity for the purpose of finding petroleum or natural underground reservoirs.

Examples—

conducting a geochemical, geological or geophysical survey
drilling a well
carrying out testing in relation to a well
taking a sample for chemical or other analysis

15When petroleum is produced

(1)Petroleum is produced when it is—
(a)recovered to ground level from a natural underground reservoir in which it has been contained; or
(b)released to ground level from a natural underground reservoir from which it is extracted.
(2)If, under the Mineral Resources Act a coal or oil shale mining lease holder mines coal seam gas, for this Act, the lease holder produces it.

15AWhat is produced water

(1)Produced water is—
(a)CSG water; or
(b)associated water for a petroleum tenure.
(2)A reference to produced water includes—
(a)treated and untreated CSG water; and
(b)concentrated saline water produced during the treatment of CSG water.

16What is a pipeline

(1)A pipeline is a pipe, or system of pipes, for transporting—
(a)generally—petroleum, fuel gas, produced water or prescribed storage gases; and
(b)GHG streams; and
(c)substances prescribed under section 402.

Note—

There is no automatic right to use a pipeline for a substance mentioned in paragraph (b) or (c). A condition of a pipeline licence may extend the licence holder’s rights to include those substances. See sections 401 and 402.
(2)A reference to a pipeline includes—
(a)a part of the pipeline, including the pipeline’s end points; and
(b)a thing connected to or associated with the pipeline that is necessary for its operation.

Examples of things that may be included in a reference to a pipeline—

meter stations, scraper stations, valve stations, pumping stations or compressor stations
plant and equipment, machinery and tanks
corrosion protection apparatus
communications equipment and towers
(3)A pipeline’s end points are—
(a)if the pipeline has not operated for the first time—the points at which a substance mentioned in subsection (1) will enter or exit the pipeline on the day the pipeline first operates; or
(b)otherwise—the points at which the substance enters or exits the pipeline.

16AWhat is a distribution pipeline

(1)A distribution pipeline is—
(a)a pipeline that transports fuel gas as part of a reticulation system; or
(b)a pipeline that is—
(i)a single point-to-point pipeline that transports fuel gas to a place other than a major user facility; or
(ii)a single point-to-point pipeline that transports fuel gas to a pipeline mentioned in subparagraph (i).
(2)However, a pipeline is not a distribution pipeline if it transports fuel gas to a pipeline mentioned in subsection (1)(a) or (b)(ii).
(3)In this section—
major user facility means—
(a)a facility within the area of a resource authority; or
(b)a facility that produces non-organic fertiliser; or
(c)a petroleum facility; or
(d)a power station; or
(e)a smelter.
point-to-point pipeline means a pipeline from a particular point or points to another particular point or points.

17What is a petroleum facility

A petroleum facility is a facility for the distillation, processing, refining, storage or transport of petroleum, other than a distribution pipeline.

Examples of things that may be a petroleum facility—

a storage depot
a meter station
a petroleum processing plant
an oil refinery
an LPG separation plant

18Types of authority under Act

(1)The following are the types of authority under this Act—
(a)an authority to prospect
(i)granted under section 41; or
(ii)continued in force under section 83 or 119; or
(iii)renewed under section 84;
(b)a petroleum lease
(i)granted under section 120, 132, 340 or 356 or chapter 15; or
(ii)continued in force under section 163; or
(iii)renewed under section 164;
(c)a data acquisition authority, granted under section 178;
(d)a water monitoring authority granted under section 192;
(e)a survey licence granted under section 396;
(f)a pipeline licence
(i)granted under section 410; or
(ii)continued in force under section 481; or
(iii)renewed under section 482;
(g)a petroleum facility licence
(i)granted under section 446; or
(ii)continued in force under section 481; or
(iii)renewed under section 482;
(h)a gas work licence granted under chapter 9, part 6, division 3, subdivision 1;
(i)a gas work authorisation granted under chapter 9, part 6, division 3, subdivision 1.
(2)The authorities, other than a gas work licence or authorisation, are collectively referred to as a petroleum authority.
(3)Authorities to prospect and petroleum leases are collectively referred to as a petroleum tenure.
(4)Survey licences, pipeline licences and petroleum facility licences are collectively referred to as a licence.

19Who is an eligible person

An eligible person is—
(a)an adult; or
(b)a company or a registered body under the Corporations Act; or
(c)a government owned corporation.

20What are the conditions of a petroleum authority

(1)The conditions of a petroleum authority are—
(a)the conditions stated in it from time to time; and
(b)the authority holder’s obligations under chapters 2 to 5; and
(c)any condition of the authority under chapters 2 to 5; and
(d)a condition that an authority holder must ensure each person acting for the holder who carries out an authorised activity for the authority complies with its conditions to the extent they apply to the carrying out of the activity.

Note—

For who may carry out an authorised activity for the holder, see section 563.
(2)A condition mentioned in subsection (1)(b) or (c) is a mandatory condition of the authority.

Note—

If a Coordinator-General’s condition applies to a petroleum lease, pipeline licence or petroleum facility licence, or proposed petroleum lease, pipeline licence or petroleum facility licence, for a coordinated project, and the condition conflicts with a mandatory condition for that type of petroleum authority, the Coordinator-General’s condition prevails to the extent of the inconsistency. See sections 123A, 412A and 447A.

21What are the provisions of a petroleum authority

(1)A reference in this Act to an authority under this Act includes a reference to its provisions.
(2)A reference in this Act to the provisions of the authority is a reference to its mandatory or other conditions and any thing written in it.

22What is an authorised activity

(1)An authorised activity, for a petroleum authority, is an activity that its holder is, under this Act or the authority, entitled to carry out in relation to the authority.

Notes—

1The provisions of the authority may restrict the carrying out of authorised activities. See sections 42, 85, 123, 165, 178, 396, 412, 447, 484 and 790(3).
2The carrying out of authorised activities is subject to the restrictions and the authority holder’s rights and obligations under chapters 2 to 5. See section 562.
3The carrying out of particular activities on particular land in a petroleum authority’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.
4For who may carry out an authorised activity for a petroleum authority holder, see section 563.
(2)An authorised activity, for a coal or oil shale mining tenement, is an activity that its holder is, under the Mineral Resources Act or the tenement, entitled to carry out or exercise in relation to the tenement.
(3)An authorised activity, for a GHG authority, is an activity that its holder is, under the GHG storage Act or the authority, entitled to carry out or exercise in relation to the authority.
(4)An authorised activity, for a geothermal tenure, is an activity that its holder is, under the Geothermal Act or the tenure, entitled to carry out or exercise in relation to the tenure.

23What is a work program for an authority to prospect

(1)The work program for an authority to prospect is its current initial or later work program approved under chapter 2, part 1, division 3, as amended from time to time under chapter 2, part 1, division 3, subdivision 6.
(2)For subsection (1), the work program is current if the period to which the program applies has started and not ended.

24What is a development plan for a petroleum lease

(1)The development plan for a petroleum lease is its current initial or later development plan approved under chapter 2, part 2, division 4.
(2)For subsection (1), the development plan is current if the period to which the plan applies has started and has not ended.

Part 4 Property in petroleum

26Petroleum the property of the State

(1)This section is subject to section 28 and chapter 2, part 6, division 3.
(2)All petroleum as follows is, and always has been, the property of the State—
(a)petroleum on the surface of land, if it was produced in the State;
(b)petroleum in a natural underground reservoir in the State, other than petroleum in the reservoir produced outside the State and injected or reinjected into the reservoir.
(3)To remove any doubt, it is declared that—
(a)a person does not acquire any property in petroleum merely because the person discovers petroleum in a natural underground reservoir; and
(b)subsection (2)(a) applies whether or not the land is freehold or other land; and
(c)subsection (2)(b) applies whether or not the natural underground reservoir is in or under freehold or other land.
(4)This section applies despite any other Act, grant, title or other document in force from the commencement of this section.
(5)In this section—
the State does not include any of the adjacent area under the Petroleum (Submerged Lands) Act 1982.

27Petroleum reservation in land grants

(1)This section applies to each grant under another Act, other than the 1923 Act, of a right—
(a)relating to land that, immediately before the grant, was unallocated State land as defined under the Land Act 1994; and
(b)that is, or was, issued on or after the commencement of the 1923 Act.

Note—

The 1923 Act commenced on 12 November 1923.
(2)The grant is taken to contain a reservation to the State of—
(a)all petroleum on or below the surface of the land; and
(b)the exclusive right to do the following in relation to the land—
(i)to enter and carry out any petroleum-related activity;
(ii)to authorise, under the provisions of this Act or another Act, others to carry out any petroleum-related activity;
(iii)to regulate, under the provisions of this Act or another Act, petroleum-related activities carried out by others.
(3)In this section—
grant, of a right, includes an authority, lease, licence, permit or other instrument of tenure, however called.
petroleum-related activity means any activity that may be carried out under this Act by the holder of any petroleum authority.

28Property in petroleum produced

(1)If a person produces petroleum, it becomes the person’s property—
(a)if the petroleum is produced under this Act; or
(b)for coal seam gas—if it is mined under the Mineral Resources Act, section 318CM or 747.
(2)However, subsection (1) is subject to—
(a)any coordination arrangement or storage agreement to which the person is a party; and
(b)any order of the Land Court under section 116; and
(c)chapter 2, part 6, division 3.
(3)Subsection (1) does not cease to apply merely because the petroleum is injected or reinjected into a natural underground reservoir.

Part 5 General provisions for petroleum authorities

29Graticulation of earth’s surface into blocks and sub-blocks

(1)A block is the land resulting from a notional division of the earth’s surface—
(a)by 2 meridians of longitude 5 minutes apart, each meridian being a multiple of 5 minutes of longitude from the meridian of Greenwich; and
(b)by 2 parallels of latitude 5 minutes apart, each parallel being a multiple of 5 minutes of latitude from the equator.
(2)A sub-block is the land resulting from a notional division of a block into 25 areas, each sub-block being bounded by 2 meridians 1 minute of longitude apart and 2 parallels of latitude 1 minute of latitude apart.
(3)Each block and sub-block must be identified in the way approved by the chief executive.

30Petroleum authority does not create an interest in land

The granting of a petroleum authority does not create an interest in any land.

30AAExtinguishing petroleum interests on the taking of land in a petroleum authority’s area (other than by an easement)

(1)This section applies to the taking of land, other than by taking or otherwise creating an easement, under a resumption law.
(2)Despite any other Act, the taking of land does not extinguish petroleum interests other than to the extent, if any, provided for in the resumption notice for the taking of the land.
(3)The resumption notice for the taking of land may provide for the extinguishment of a petroleum interest on the taking only to the extent the relevant Minister for the taking is satisfied the interest is incompatible with the purpose for which the land is taken.
(4)Without limiting the application of subsection (3), the relevant Minister may be satisfied a petroleum interest is incompatible with the purpose for which the land is taken if, for that purpose, it is necessary to extinguish all interests in the land, including native title rights and interests.
(5)A petroleum interest may be—
(a)wholly extinguished; or
(b)partially extinguished by—
(i)excluding land from the land the subject of the interest; or
(ii)prohibiting the carrying out of activities by the holder of the interest.
(6)The resumption notice for the taking of land may provide for the extinguishment of petroleum interests by reference to either or both of the following—
(a)stated land, which—
(i)may be all or part of the land that is taken; and
(ii)if the stated land is only part of the land that is taken—may be described in the resumption notice in any way, including, for example—
(A)as a shape that does not constitute a block or sub-block; or
(B)by using 3 dimensionally located points to identify the position, shape and dimensions of each boundary;
(b)stated petroleum interests, which may be all petroleum interests or petroleum interests of a particular type.
(7)For the taking of land for which petroleum interests are extinguished as provided by this section—
(a)each person’s interest in an extinguished petroleum interest is converted into a right to claim compensation under the resumption law; and
(b)the resumption law applies with necessary and convenient changes and with the changes mentioned in subsections (8) and (9) and section 30AD.
(8)The notice of intention to resume for the proposed taking of the land must state the extent to which the petroleum interests are proposed to be extinguished.
(9)The entity taking the land must give the chief executive a notice that—
(a)states the details of the extinguishment; and
(b)asks for the extinguishment to be recorded in the register; and
(c)is accompanied by a certified copy of the resumption notice.
(10)In this section—
certified copy, of the resumption notice, means a copy of the original of the notice that has been certified by a justice of the peace as being a correct copy of the original notice.
relevant Minister, for the taking of land under a resumption law, means—
(a)if the land is taken under the process stated in the ALA (whether the land is taken under the ALA or another resumption law)—the Minister to whom the application that the land be taken is made under section 9 of that Act; or
(b)otherwise—the Minister administering the resumption law under which the land is, or is to be, taken.

30ABEffect of extinguishment of petroleum interests on the taking of land in a petroleum authority’s area (other than by an easement)

(1)This section applies if, under section 30AA, the resumption notice for the taking of land (other than by taking or otherwise creating an easement) under a resumption law provides for the extinguishment of petroleum interests for stated land.
(2)If the resumption notice states that all petroleum interests relating to the stated land are extinguished and a petroleum interest relates only to the stated land, the interest is wholly extinguished.
(3)If the resumption notice states that all petroleum interests relating to the stated land are extinguished and a petroleum interest relates to the stated land and other land—
(a)the stated land is no longer the subject of the interest; and
(b)without limiting paragraph (a)—
(i)the stated land is excluded from the area of the petroleum authority comprising the interest, or under or in relation to which the interest exists; and
(ii)this Act applies, in relation to the area of the petroleum authority, with necessary and convenient changes to allow for the exclusion of the stated land, including, for example—
(A)to allow the area to include a part of a block or sub-block if the part is what is left after the stated land is excluded from the area; and
(B)if the stated land, or a part of it, is within a potential commercial area for an authority to prospect—to exclude the stated land or part from the potential commercial area.
(4)If the resumption notice states that the carrying out of stated activities on the stated land by holders of stated petroleum interests is prohibited, the holder of a stated petroleum interest is not, or is no longer, authorised to carry out the stated activities on the stated land.
(5)However, subsections (3) and (4) do not apply in relation to a petroleum interest that comprises, or exists under or in relation to, a new or renewed petroleum authority granted after the land is taken.

30ACApplications relating to land taken under a resumption law for which petroleum interests were extinguished

(1)The Minister may, under a grant provision, grant a petroleum authority for an area that includes acquired land only if the Minister, after consulting the entity that took the land, is satisfied the grant of the authority is compatible with the purpose for which the land is being or is to be used.
(2)If there are 2 or more applications under this Act for the grant, under a grant provision, of a new petroleum authority for an area that includes the same acquired land, the applications are to be dealt with as follows—
(a)the applications must be considered and decided according to the day on which they are lodged;
(b)if the applications were lodged on the same day—
(i)they take the priority the Minister decides, after considering the relative merits of each application; and
(ii)the Minister must give each applicant a notice stating there is competition for priority between the applicant’s application and another application, or other applications, lodged on the same day as the day on which the applicant’s application was lodged.
(3)If a grant provision provides for the grant of a new petroleum authority (the new authority) over land in the area of an existing petroleum authority or 1923 Act ATP (the existing authority)—
(a)the application under this Act for the new authority may include acquired land that was, immediately before the taking of the land, in the existing authority’s area; and
(b)subject to subsections (1) and (2), the Minister may grant a new authority for an area that includes the acquired land as if the acquired land were in the existing authority’s area.
(4)To remove any doubt, it is declared that this section does not affect the operation of the provisions of this Act about the application for, and grant of, a new petroleum authority other than to the extent provided for in subsections (1) to (3).
(5)In this section—
grant provision means a provision of this Act providing for the grant of a new petroleum authority.
new petroleum authority includes a renewed petroleum authority.

30ADCompensation for effect of taking of land in a petroleum authority’s area on petroleum interests

(1)This section applies if land in a petroleum authority’s area is taken (including by taking or otherwise creating an easement) under a resumption law other than sections 456 to 458 of this Act.
(2)In assessing any compensation to be paid to the holder of a petroleum interest in relation to the taking of the land, allowance can not be made for the value of petroleum known or supposed to be in, or produced from, the land.

Note—

See section 458(3) in relation to land in a petroleum authority’s area taken under sections 456 to 458 of this Act.

30AJoint holders of a petroleum authority

(1)A petroleum authority may be held by 2 or more persons as joint tenants or as tenants in common.
(2)If—
(a)an application is made for a petroleum authority, or for approval to register a transfer of a petroleum authority under the Common Provisions Act, for more than 1 proposed holder or transferee; and
(b)the application does not show whether the proposed holders or transferees are to hold as joint tenants or as tenants in common; and
(c)the application is granted;

the chief executive must record in the register that the applicants hold the authority as tenants in common.

(3)In this section—
petroleum authority includes a share in a petroleum authority.

Chapter 2 Petroleum tenures and related matters

Notes—

1For the requirement for a petroleum tenure, see section 800.
2Chapters 3 and 3A impose requirements for and restrictions on the granting of and restrictions on authorised activities that may be carried out under particular petroleum tenures. See sections 297 and 392AA.

Part 1 Authorities to prospect

Division 1 Key authorised activities

31Operation of div 1

(1)This division provides for the key authorised activities for an authority to prospect.

Notes—

1For other authorised activities, see chapter 2, part 4, chapter 5, part 8 and the Common Provisions Act, chapter 3, part 2.
2The carrying out of particular activities on particular land in an authority to prospect’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.
(2)The authorised activities may be carried out despite the rights of an owner or occupier of land on which they are exercised.
(3)However, the carrying out of the authorised activities is subject to—
(a)section 6; and
(b)chapter 3, part 4, division 2; and
(c)chapter 3, part 4A; and
(d)chapter 3A, part 5; and
(e)chapters 5 and 9; and
(f)the mandatory and other conditions of the authority; and
(g)any exclusion or restriction provided for in the authority on the carrying out of the activities; and
(h)any other relevant Act or law.

32Exploration and testing

(1)The authority to prospect holder may carry out any of the following activities in the area of the authority—
(a)exploring for petroleum;
(b)testing for petroleum production;
(c)evaluating the feasibility of petroleum production;
(d)evaluating or testing natural underground reservoirs for the storage of petroleum or a prescribed storage gas;
(e)plugging and abandoning, or otherwise remediating, a bore or well the holder reasonably believes is a legacy borehole and rehabilitating the surrounding area in compliance with the requirements prescribed under a regulation.
(2)However, the holder must not carry out any of the following—
(a)extraction or production of a gasification or retorting product from coal or oil shale by a chemical or thermal process;
(b)exploration for coal or oil shale to carry out extraction or production mentioned in paragraph (a);
(c)GHG stream storage.
(3)The carrying out of activities mentioned in subsection (1), other than exploring for petroleum, is subject to sections 71A and 71B.
(4)The rights under subsection (1) may be exercised only by or for the holder.

Note—

For who may exercise the rights for the holder, see section 563.

33Incidental activities

(1)The authority to prospect holder may carry out an activity (an incidental activity) in the area of the authority if carrying out the activity is reasonably necessary for, or incidental to, an authorised activity under section 32(1) for the authority or another authority to prospect.

Examples of incidental activities—

1constructing or operating plant or works, including, for example, communication systems, pipelines associated with petroleum testing, powerlines, roads, separation plants, evaporation or storage ponds, tanks and water pipelines
2constructing or using temporary structures or structures of an industrial or technical nature, including, for example, mobile and temporary camps
3removing vegetation for, or for the safety of, exploration or testing under section 32(1)

Note—

See also part 10, section 239, chapter 5 and section 20.
(2)However, neither of the following activities is an incidental activity—
(a)constructing or using a structure, other than a temporary structure, for office or residential accommodation;

Note—

For development generally, see the Planning Act 2016, chapter 3.
(b)the processing of gaseous petroleum, other than gaseous petroleum produced as an unavoidable result of ATP production testing.
(3)In this section—
gaseous petroleum means petroleum in a gaseous state.
processing, of gaseous petroleum, means treating the petroleum to be suitable for transport.

Division 2 Obtaining authority to prospect

Subdivision 1 Preliminary

34Operation of div 2

(1)This division provides for a process for the granting of authorities to prospect by competitive tender.
(2)To remove any doubt, it is declared that an authority to prospect can only be granted under this division or division 8, subdivision 2.

Subdivision 2 Competitive tenders

35Call for tenders

(1)The Minister may publish a gazette notice (a call for tenders) inviting tenders for an authority to prospect.
(2)The call must state—
(a)the proposed area of the authority; and
(b)the proposed term of the authority; and
(bc)that, under section 99, particular land may be excluded land for the authority; and
(d)that the tenders must be accompanied by a proposed initial work program for the period mentioned in paragraph (h)(ii); and
(e)whether the proposed initial work program under paragraph (d) must be a proposed work program (activities-based) or a proposed work program (outcomes-based); and
(cf)the day and time by which tenders in response to it must be made (the closing time for the call); and
(dg)that the tenders must be lodged before the closing time for the call; and
(eh)that details about each of the following are available at a stated place—
(i)any proposed conditions of the authority, other than mandatory conditions, that are likely to impact significantly on exploration in the proposed area;
(ii)the required program period for the initial work program for the authority;
(iii)any criteria (special criteria), other than the work program criteria and capability criteria, proposed to be used to decide whether to grant the authority, or to decide its provisions;
(iv)whether a process for appointing a preferred tenderer involving a cash bid component is to be used for deciding the call;
(v)if any part of the proposed area of the authority is to be subject to an Australian market supply condition—the part of the proposed area and the condition.
(3)The call may state other relevant matters, including, for example, matters relevant to the special criteria, work program criteria and capability criteria.
(4)The area of the authority must comply with section 98.
(5)Subsection (2)(e)(i) does not limit the Minister’s power under section 42 to decide conditions of the authority if it is granted.h)(i) does not limit the Minister’s power under section 42 to decide conditions of the authority if it is granted.

36Right to tender

(1)An eligible person may, by a tender made under section 37, tender for a proposed authority to prospect the subject of a call for tenders.
(2)However, the tender can not be made—
(a)after the closing time for the call; or
(b)for only part of the area of the proposed authority.

37Requirements for making tender

A tender for an authority to prospect must—
(a)be lodged in the approved form; and
(b)address the capability criteria; and
(c)include a proposed work program that complies with the initial work program requirements; and
(d)be accompanied by the following—
(i)the fee prescribed under a regulation;
(ii)if a process for appointing a preferred tenderer involving a cash bid component is to be used for deciding the call—the tenderer’s cash bid.

38Right to terminate call for tenders

(1)The Minister may, by gazette notice, terminate a call for tenders at any time before deciding to grant an authority to prospect to a person who has made a tender in response to the call.
(2)All tenders in response to the call lapse when the call is terminated.
(3)No amount, whether by way of compensation, reimbursement or otherwise is payable by the State to any person for or in connection with the termination.
(4)However, subject to sections 40(4) and 845(5), the Minister must refund any tender security given by the tenderer.

Subdivision 3 Deciding tenders

39Process for deciding tenders

(1)Subject to section 43, any process the Minister considers appropriate may be used to decide a call for tenders, including, for example—
(a)a process appointing a preferred tenderer on the tenders made in response to the call (whether or not involving a cash bid component); or
(b)a process involving short-listing a group of possible preferred tenderers and inviting them to engage in another round of tendering before appointing a preferred tenderer from that group.
(2)Without limiting subsection (1), the Minister may give a tenderer a notice requiring the tenderer to give the Minister, within the reasonable period stated in the notice, information the Minister reasonably requires to assess the tender.

40Provisions for preferred tenderers

(1)The Minister may require a preferred tenderer for the call for tenders to—
(a)pay any amounts necessarily incurred, or to be incurred, to enable the authority to prospect to be granted; and

Example—

amounts required to comply with the Commonwealth Native Title Act, part 2, division 3, subdivision P
(b)to do all or any of the following within a stated reasonable period—
(i)pay the annual rent for the first year of the authority;
(ii)give, under section 488, security for the authority.
(2)If a preferred tenderer does not—
(a)comply with a requirement under subsection (1); or
(b)do all things reasonably necessary to allow an authority to prospect to be granted to the tenderer;

the Minister may revoke the tenderer’s appointment as the preferred tenderer.

(3)However, before acting under subsection (2), the Minister must give the preferred tenderer a reasonable opportunity to provide reasons for, and rectify, the tenderer’s failure to comply with a requirement under subsection (1) or (2)(b).
(4)If the Minister revokes the appointment of the tenderer as the preferred tenderer under this section, the Minister may—
(a)retain the whole or part of any tender security given by the tenderer, if the Minister considers it reasonable in the circumstances; and
(b)appoint another tenderer to be the preferred tenderer.

41Deciding whether to grant authority to prospect

(1)The Minister may, after the closing time for the call for tenders—
(a)grant an authority to prospect to 1 tenderer; or
(b)refuse to grant any authority to prospect.
(2)However—
(a)before deciding to grant the authority, the Minister must decide whether to approve the applicant’s proposed initial work program for the authority; and
(b)the Minister can not grant the authority unless—
(i)the tenderer is an eligible person; and
(ii)the proposed program has been approved; and
(iii)a relevant environmental authority for the authority to prospect has been issued.

Note—

If a tender relates to acquired land, see also section 30AC.
(3)The Minister may impose on the authority the conditions the Minister considers appropriate.

42Provisions of authority to prospect

(1)Each authority to prospect must state its term and area.
(2)The term—
(a)must be for at least the required program period for the initial work program for the authority under the call for tenders; but
(b)must end no later than 12 years after the authority takes effect.
(3)The authority may also state—
(a)conditions or other provisions of the authority, other than conditions or provisions that are—
(i)inconsistent with the mandatory conditions for authorities to prospect; or
(ii)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the authority; and
(b)the day it takes effect; and.
(c)relinquishment days for the authority.

Note—

For the relinquishment condition of an authority to prospect, see section 65.
(3A)The conditions of the authority may include an Australian market supply condition applying to all or part of the area of the authority.
(4)However, the provisions of the authority may exclude or restrict the carrying out of an authorised activity for the authority.
(5)The day of effect must not be before the day the authority is granted.
(6)If no day of effect is stated, the authority takes effect on the day it is granted.
(7)Subject to division 3, subdivision 7, the first relinquishment day must not be later than 4 years after the day the authority is to take effect.
(8)The second and any later relinquishment days must not be later than 4 years after the previous relinquishment day.
(9)If relinquishment days are not stated, its relinquishment days are taken to be—
(a)the day that is the fourth anniversary of the authority’s day of effect; and
(b)each day during its term that is a 4 yearly interval after the day of effect.

42A Amendment of conditions by Minister if exceptional event

(1)This section applies if the Minister considers the conditions of an authority to prospect must be amended because of an exceptional event affecting the authority.
(2)The Minister may amend the authority by imposing a condition on, or varying or removing a condition of, the authority without application from the holder.
(3)The amendment takes effect 10 business days after the holder is given the notice or, if the notice states a later day of effect, the later day.
(4)This section does not limit section 41(3).

43Criteria for decisions

(1)The matters that must be considered in deciding whether to grant an authority to prospect or deciding its provisions include—
(a)any special criteria; and
(b)the extent to which the Minister is of the opinion that the tenderer is capable of carrying out authorised activities for the authority, having regard to the tenderer’s—
(i)financial and technical resources; and
(ii)ability to manage petroleum exploration and production; and
(c)the applicant’s proposed initial work program.
(2)The matters mentioned in subsection (1)(b) are the capability criteria.
(3)A person satisfies the capability criteria if the Minister forms the opinion mentioned in subsection (1)(b).

44Notice to unsuccessful tenderers

(1)After a call for tenders has been decided, each tenderer not granted the authority to prospect must be given notice of the decision.

Note—

See also the Judicial Review Act 1991, section 32 (Request for statement of reasons).
(2)Subject to sections 40(4) and 845(5), the Minister must refund any tender security given by the tenderer.

Division 3 Work programs

Subdivision 1 Types of work program

45Types of work program for authority to prospect

(1)A work program for an authority to prospect is—
(a)a work program (activities-based); or
(b)a work program (outcomes-based).
(2)A work program (activities-based) for an authority to prospect is a document stating—
(a)the activities proposed to be carried out during the period of the program; and
(b)the estimated human, technical and financial resources proposed to be committed to exploration during the period of the program.
(3)A work program (outcomes-based) for an authority to prospect is a document stating—
(a)the outcomes proposed to be pursued during the period of the program; and
(b)the strategy for pursuing the outcomes mentioned in paragraph (a); and
(c)the information and data proposed to be collected about the existence of petroleum or gas during the period of the program; and
(d)the estimated human, technical and financial resources proposed to be committed to exploration during the period of the program.

Subdivision 1 Function and purpose of work program

45Function and purpose

(1)The work program for an authority to prospect gives detailed information about the nature and extent of activities to be carried out under the authority.
(2)The purposes of giving the information are to—
(a)allow resource management decisions to be made; and
(b)ensure appropriate development of the authority.

Subdivision 2 Requirements for proposed initial work programs

46Operation of sdiv 2subdivision

This subdivision provides for requirements (the initial work program requirements) for a proposed initial work program for a proposed authority to prospect.

47Program period

(1)The proposed initial work program must state its period.
(2)The period must be the same as the required period under the relevant call for tenders.

48General requirements

(1)The proposed program must provide for each of the following—
(a)an overview of the activities proposed to be carried out under the authority or proposed authority during all of its term;
(b)for each year of the program period—
(i)the extent and nature of petroleum exploration and testing for petroleum production proposed to be carried out during the year; and
(ii)generally where the activities are proposed to be carried out; and
(iii)the estimated cost of the activities;
(c)maps that show where the activities are proposed to be carried out;
(d)any other information relevant to the matters mentioned in section 49;
(e)reasons why the program is considered appropriate;
(f)another matter prescribed under a regulation.
(2)A regulation may impose requirements about the form of the work program.
(3)In this section—
year, of the program period, means—
(a)the period starting on the day the program period starts and ending on the first anniversary of that day; and
(b)each subsequent period of 12 months or less during the program period, starting on each anniversary of that day and ending on—
(i)the next anniversary of that day; or
(ii)if the program period ends before the next anniversary—the day the program period ends.

48General requirements

(1)The proposed initial work program must be of the type required under section 35(2)(e).
(2)The proposed initial work program must include—
(a)maps that show where the exploration under the proposed authority to prospect is proposed to be carried out; and
(b)reasons why the holder of the proposed authority to prospect considers the program to be appropriate; and
(c)any other information relevant to the work program criteria; and
(d)any other information prescribed by regulation.

Subdivision 3 Criteria for deciding whether to approve proposed initial work programs

49Criteria

(1)The matters that must be considered in deciding whether to approve a proposed initial work program include the appropriateness of the tenderer’s proposed work program, having regard to each of the following—
(a)the potential of the proposed area of the authority to prospect for petroleum discovery;
(b)the extent and nature of the proposed petroleum exploration;

Examples—

proposed geological, geophysical or geochemical surveying
the number of petroleum wells the tenderer proposes to drill, and their type
(c)when and where the tenderer proposes to carry out the exploration.
(2)The matters mentioned in subsection (1) are the work program criteria.

Subdivision 4 Requirements for proposed later work programs

50Operation of sdiv 4

This subdivision provides for requirements (the later work program requirements) for a proposed later work program for an authority to prospect.

Note—

For the requirements to lodge a proposed later work program, see sections 79 (Obligation to lodge proposed later work program), 100 (Minister may add excluded land), 104 (Requirements for making application) and 790 (Types of noncompliance action that may be taken).

51General requirements

(1)The proposed later work program for an authority to prospect may be a work program (activities-based) or work program (outcomes-based).
(2)The proposed later work program must state—
(a)the extent to which the current work program for the authority to prospect has been complied with; and
(b)if there have been any amendments to the authority to prospect or the current work program—
(i)whether the changes have been incorporated in the proposed later work program; and
(ii)any effect the changes have on the proposed later work program; and
(c)the effect of any petroleum discovery on the proposed later work program.
(3)The proposed later work program must include—
(a)maps that show where the exploration under the authority to prospect is proposed to be carried out; and
(b)reasons why the holder of the authority to prospect considers the program to be appropriate; and
(c)any other information prescribed by regulation.

51General requirements

The proposed program must—
(a)other than in relation to the program period, comply with the initial work program requirements; and
(b)state the extent to which the current work program for the authority to prospect has been complied with; and
(c)if there have been any amendments to the authority or the current work program, state—
(i)whether the changes have been incorporated in the proposed program; and
(ii)any effect the changes have on the proposed program; and
(d)state the effect of any petroleum discovery on the proposed program.

52Program period

(1)The proposed later work program must state its period.
(2)The period must not be longer than—
(a)if the term of the rest, or the renewed term, of the authority is less than 46 years—the rest of its term or renewed term; or
(b)if the term of the rest, or the renewed term, of the authority is 46 years or more, the following—
(i)generally—46 years from the start of the period;
(ii)if the Minister approves a longer period—the longer period.
(3)However, the Minister can not approve a period longer than the rest of the term or renewed term of the authority.

53Implementation of evaluation program for potential commercial area

If, under section 91, an evaluation program is taken to be an additional part of the existing work program for the authority to prospect, the proposed later work program must include work necessary to implement the evaluation program for the period of that program.

54Later work programs for proposed new authorities

Proposed later work programs for an application under division 8, subdivision 2, to divide an authority to prospect must have a combined effect that is at least the effect of the work program for the original authority.

Subdivision 5 Approval of proposed later work programs

55Application of sdiv 5

This subdivision applies if, under this Act, a proposed later work program is lodged for approval.

55AModified application of ch 14, pt 1

Chapter 14, part 1 applies in relation to the lodgement by an authority to prospect holder of a proposed later work program as if—
(a)the lodgement of the proposed program were the making of an application by the holder; and
(b)the later work program requirements for the proposed program were the requirements under chapter 14, part 1 for making the application.

56Authority taken to have work program until decision on whether to approve proposed later work program

(1)This section applies until—
(a)if the proposed later work program is approved—the holder is given notice of the approval; or
(b)if approval of the proposed later work program is refused—when the refusal takes effect.
(2)Despite the ending of the program period for the current work program for the authority to prospect—
(a)the authority is taken to have a work program; and
(b)the holder may carry out any authorised activity for the authority.

57Deciding whether to approve proposed later work program

(1)The Minister may approve or refuse to approve the proposed later work program.
(2)The matters that must be considered in deciding whether to approve the proposed later work program include each of the following—
(a)the work program criteria and capability criteria and any special criteria that applied for deciding the application for the authority to prospect;
(b)the extent to which the current work program has been complied with;
(c)any amendments made to the authority or its current work program, and the reasons for the changes;
(d)any commercial viability report or independent viability assessment for the authority.
(3)Also, if the authority was granted in response to a tender, any other work program proposed by other tenderers for the authority must be taken into account.
(4)However, subsection (3) applies only to the extent the other program includes the period of the proposed plan.

58Steps after, and taking effect of, decision

(1)On approval of the proposed later work program, the holder must be given notice of the approval.
(2)On refusal to approve the later work program, the holder must be given an information notice about the decision to refuse.
(3)An approval takes effect when the holder is given the notice or, if the notice states a later day of effect, on that later day.
(4)A refusal does not take effect until the end of the appeal period for the refusal.

Subdivision 6 Amending work programs

59Restrictions on amending work program

(1)An authority to prospect holder may amend the work program for the authority only if—
(a)an application for approval of the amendment has been made under this subdivision and the amendment has been approved under this subdivision; and

Note—

See also section 91 (Inclusion of evaluation program in work program).
(b)if the amendment is to extend the period of the work program—the requirements under subsection (2) or (3) have been complied with.
(2)For subsection (1)(b), the requirements for an amendment to extend the period of an approved initial work program for an authority to prospect are—
(a)the period of the approved initial work program has not previously been extended; and
(b)either—
(i)the Minister is satisfied the amendment is needed for a reason beyond the holder’s control; or
(ii)within 3 months before the making of the application, the authority to prospect has been transferred within the meaning of subsection (4).
(3)For subsection (1)(b), the requirements for an amendment to extend the period of an approved later work program for an authority to prospect are—
(a)the period of the approved later work program, and any earlier approved work program for the authority, has not previously been extended; and
(b)within 3 months before the making of the application, the authority to prospect has been transferred within the meaning of subsection (4).
(4)For subsection (2) and (3), an authority to prospect is transferred only if—
(a)a person (the designated person) became a holder of the authority as a result of—
(i)an application having been made, under the Common Provisions Act, for approval to register a transfer of a share in the authority; and
(ii)approval to register the transfer having been given under that Act; and
(b)the share, or proposed share, of the designated person in the authority is at least 50%; and
(c)the designated person is not, under the Corporations Act, section 64B, an entity connected with another person who is a holder of the authority.
(5)An amendment under this section to extend the period of a work program may be granted only if the extended period ends no later than—
(a)1 year after the current period of the work program; or
(b)12 years after the authority originally took effect.
(2)For subsection (1)(b), the requirements are each of the following—
(a)if the work program is the initial work program for the authority—the Minister must be satisfied the work program needs to be amended for a reason beyond the holder’s control;
(b)the period of the work program, or any earlier work program for the authority, must not have previously been extended;
(c)the extension can not be for a term that ends after—
(i)1 year after the current period of the work program; or
(ii)12 years after the authority originally took effect;
(d)within 3 months before the making of the application, a person (the designated person) became a holder of the authority as a result of—
(i)an application having been made, under the Common Provisions Act, for approval to register a transfer of a share in the authority; and
(ii)approval to register the transfer having been given under that Act;
(e)the share, or proposed share, of the designated person in the authority is at least 50%;
(f)the designated person is not, under the Corporations Act, section 64B, an entity connected with another person who is a holder of the authority.

60Applying for approval to amend

(1)An authority to prospect holder may apply for approval to amend the work program for the authority.

Note—

For other relevant provisions about applications, see chapter 14, part 1 and section 851AA.
(2)However, the application can not be made less than 20 business days before the end of the period stated in the work program for carrying out work under the program.
(3)Subsection (2) does not apply if the Minister is satisfied the work program needs to be amended for a reason beyond the holder’s control.
(4)The application must be accompanied by the fee prescribed under a regulation.

62Deciding application

(1)If the proposed amendment—
(a)does not relate to the initial work program for the authority to prospect; and
(b)is to substitute the carrying out of an authorised activity (the original activity) with another authorised activity;

the Minister may approve the amendment if satisfied the other activity is at least of an equivalent value to the original activity.

(2)If the application is to extend the period of the work program for the authority, the Minister may approve the amendment only if satisfied—
(a)the requirements under section 59(2) or (3) have been complied with; and
(b)the designated person mentioned in section 59(2) is likely to provide additional financial or technical resources for the authority; and4) is likely to provide additional financial or technical resources for the authority; and
(c)the work program will be completed within the period of the extension.

Note—

For additional provisions about relinquishment that apply if the period is extended, see sections 65(1)(c) and 78A.
(3)Otherwise, the Minister may approve the amendment only if satisfied it is necessary because of a circumstance—
(a)not related to—
(i)the applicant’s financial or technical resources or ability to manage petroleum exploration; or
(ii)the results of exploration; and
(b)the happening of which is or was beyond the applicant’s control; and
(c)that could not have been prevented by a reasonable person in the applicant’s position.
(4)Also, if the amendment is approved under subsection (3), anythe relinquishment day for the authority may be deferred for a period that relates to a circumstance mentioned in subsection (3).
(5)A deferral under subsection (4) can not be for longer than 12 years after the authority took effect.
(5)A deferral under subsection (4)—
(a)can not be for longer than 12 years after the authority took effect; and
(b)does not defer any later relinquishment day for the authority.
(6)If, under this section, an amendment is approved, a condition (an additional relinquishment condition) may be imposed on the authority requiring its holder to relinquish, by a lodged notice, at least a stated percentage of the original notional sub-blocks of the authority on or before a stated day.

63Steps after, and taking effect of, decision

(1)On approval of the proposed amendment, the holder must be given notice of the approval.
(2)On refusal to approve the proposed amendment, the holder must be given an information notice about the decision to refuse.
(3)An approval takes effect when the holder is given the notice or, if the notice states a later day of effect, on that later day.

Subdivision 7 Special statutory extension of work programs

63AApplication of sdiv 7

This subdivision applies to the following authorities to prospect—
(a)an authority granted before 1 July 2014 that is in force immediately before 1 July 2014;
(b)an authority granted under section 41 on or after 1 July 2014 if—
(i)the holder of the authority is, immediately before 1 July 2014, regarded by the Minister as the preferred tenderer for the call of tenders for the authority; or
(ii)the holder of the authority is, on or after 1 July 2014, regarded by the Minister as the preferred tenderer for the call of tenders for the authority that closes on 29 September 2014.

63BExtension of current work program—authority to prospect for a term of 12 years

(1)This section applies to an authority to prospect mentioned in section 63A(a) or (b) granted or to be granted for a term of 12 years.
(2)The program period for the current work program for the authority to prospect is extended by 2 years—
(a)for an authority mentioned in section 63A(a)—on 1 July 2014; or
(b)for an authority mentioned in section 63A(b)—on the day the authority is granted.
(3)The 2-year extension applies without any requirement to give notice of the extension to the authority to prospect holder.
(4)If the 2-year extension would result in the program period for the work program ending after the 12-year period for the authority to prospect, the effect, if any, of the 2-year extension is that the extension of the program period ends at the end of the 12-year period.

63CExtension of current work program—authority to prospect for a term of less than 12 years

(1)This section applies to an authority to prospect mentioned in section 63A(a) or (b) granted or to be granted for a term of less than 12 years.
(2)The holder of the authority to prospect may apply to the Minister in the approved form to extend the term of the authority to prospect, and the program period for the current work program for the authority, by 2 years.
(3)If the Minister approves the extension, the term of the authority to prospect, and the program period for the current work program, are extended by 2 years.
(4)If the 2-year extension would result in the program period for the work program ending after the term for the authority to prospect ends, the effect, if any, of the 2-year extension is that the extension of the program period ends at the end of the term of the authority.
(5)Only 1 application may be made under this section in relation to the authority to prospect.

63DApplying 2-year extension to current work program for activities

(1)The 2-year extension has effect for a work program without any requirement for amending the work program under subdivision 6, and the extension does not count as a previous extension under section 59(2)(b).
(2)Activities provided for in the work program are not changed.
(3)Requirements stated in the work program for the carrying out of stated activities are taken to be adjusted to allow for the activities to be undertaken during the extended remaining period for the work program.

63EApplying 2-year extension to relinquishment

(1)This section applies if, immediately before the commencement of this subdivision, a relinquishment of a part of the area of an authority to prospect was required to be made—
(a)on a relinquishment day happening on or after the commencement; or
(b)if there was a deferral of a relinquishment day under section 62—on a day within the period that, on the commencement, becomes the extended remaining period for the work program.
(2)The relinquishment is instead required to be made at the end of the extended remaining period for the work program.

Division 4 Key mandatory conditions for authorities to prospect

Subdivision 1 Preliminary

64Operation of div 4

This division provides for particular mandatory conditions for authorities to prospect.

Notes—

1The following provisions also impose mandatory conditions on authorities to prospect—
division 1
parts 4 and 10
sections 181 and 202
chapter 3, part 4, division 4
chapter 3A, part 5
chapter 5.
2For what is a mandatory condition, see section 20(2).

Subdivision 2 Standard relinquishment condition and related provisions

64AWhat is the relinquishment day

The relinquishment day, for an authority to prospect, is the day before the sixth anniversary of the day the authority took effect.

65Standard relinquishment condition

(1)It is a condition (the relinquishment condition) of each authority to prospect that its holder must relinquish part of its area, as provided for under this subdivision—
(a)on or before each of its relinquishment daysthe relinquishment day for the authority; and
(b)if section 68(3) applies—on the day provided for under that subsection; and
(c)if, under division 3, subdivision 6, the period of the work program for the authority has been extended—the day on which the extended period ends.
(2)However, if, under section 62(4), the relinquishment day for the authority (the original day) is deferred for a stated period, for the relinquishment condition, the relinquishment that was required on or before the original day is taken to have been deferred until the end of the stated period.
(2)However, if, under section 62(4), a relinquishment day for the authority (the original day) is deferred for a stated period, for the relinquishment condition—
(a)the relinquishment that was required on or before the original day is taken to have been deferred until the end of the stated period; but
(b)the relinquishments required under the relinquishment condition on any later relinquishment days for the authority must be made as if the deferral has not been granted.
(3)A relinquishment required under the relinquishment condition—
(a)must be made by a lodged notice (relinquishment notice); and
(b)takes effect on the day after lodgement under paragraph (a).
(4)This section does not prevent the holder from relinquishing, by relinquishment notice, more than the part provided for under this subdivision.

65AConsequence of failure to comply with relinquishment condition

(1)If the holder of an authority to prospect does not comply with the relinquishment condition the holder must be given a notice requiring the holder to comply with the condition within 20 business days after the giving of the notice.
(2)If the holder does not comply with the requirement, the authority to prospect is cancelled.

66Part usually required to be relinquished

(1)This section is subject to sections 68 and 69.
(2)The holder must relinquish 50% of the original notional sub-blocks of the authority to prospect by the end of the relinquishment day.
(2)The relinquishment for each relinquishment day, and any other day mentioned in section 65(1)(b) or (c) that applies to the authority, must be such that by that day at least 8.33% of the original notional sub-blocks of the authority to prospect have been relinquished for each year that has passed since the authority originally took effect.
(3)The sub-blocks required to be relinquished under this section is the usual relinquishment.

67Sub-blocks that can not be counted towards relinquishment

(1)The following can not be counted as sub-blocks relinquished for the relinquishment condition—
(a)sub-blocks relinquished under an additional relinquishment condition;
(b)sub-blocks in an area that, under section 101, has ceased to be included in the authority to prospect;
(c)the mere declaration of the sub-blocks as a potential commercial area for the authority;
(d)sub-blocks the subject of an application for a petroleum lease or potential commercial area;
(e)sub-blocks relinquished under a penalty relinquishment.
(2)To remove any doubt, it is declared that a potential commercial area can be relinquished and can be counted as an area relinquished for the relinquishment condition.
(3)In this section—
penalty relinquishment means a relinquishment that is—
(a)made under section 78A or under a requirement under section 790(1)(b); and
(b)more than the sub-blocks required to be relinquished under the relinquishment condition.

68Adjustments for sub-blocks that can not be counted

(1)This section applies for athe relinquishment day for an authority to prospect if, after taking away all sub-blocks that, under section 67, can not be counted for the relinquishment condition, the balance of the sub-blocks of the authority to prospect is less than the sub-blocks required to be relinquished under the usual relinquishment.
(2)The relinquishment condition is taken to have been complied with if the authority holder gives a relinquishment notice for all of the balance.
(3)However, if—
(a)a sub-block not counted for the relinquishment condition was the subject of an application for a petroleum lease or potential commercial area; and
(b)the result of the application is that it is refused;

the authority holder must, within 20 business days after the appeal period for the decision to refuse, give a relinquishment notice for that sub-block.

69Adjustment for particular potential commercial areas

If the only way to comply with the relinquishment condition is to relinquish all or part of a potential commercial area for the authority, the relinquishment condition is taken to be complied with if all remaining sub-blocks of the original notional sub-blocks of the authority are relinquished.

70Relinquishment must be by blocks or sub-blocks

(1)A relinquishment under the relinquishment condition—
(a)may be by blocks or sub-blocks; and
(b)must be of at least 1 block.
(1)A relinquishment under the relinquishment condition can only be by blocks.
(2)However, if a block contains an area that, under section 67, can not be counted as a relinquishment, subsection (1)(b) is complied with if all of the rest of the land within the block is relinquished.

71Ending of authority to prospect if all of its area relinquished

If all of the area of an authority to prospect is relinquished, the authority ends.

Subdivision 2A Mandatory conditions for particular types of testing

71AATP production testing

(1)Subject to section 72, an authority to prospect holder may carry out testing for petroleum production for a petroleum well (ATP production testing) within the area of the authority.
(2)However, it is a condition of the authority to prospect that—
(a)the holder gives the chief executive a notice, containing the information prescribed by regulation, in relation to the ATP production testing within 20 business days after the testing starts; and
(b)the testing is carried out after the end date for the testing only with the Minister’s approval.
(3)The Minister may, at any time, approve the carrying out after the end date for ATP production testing (the original ATP production testing) of further ATP production testing and the approval is subject to the conditions the Minister considers appropriate.
(4)If the Minister decides not to approve the carrying out of further ATP production testing, the Minister must give the authority to prospect holder an information notice about the decision.

71BATP storage testing

(1)Subject to section 72, an authority to prospect holder may carry out testing for the storage of petroleum or a prescribed storage gas in a natural underground reservoir (ATP storage testing) within the area of the authority.
(2)However, it is a condition of the authority to prospect that—
(a)the holder gives the chief executive a notice, containing the information prescribed by regulation, in relation to the ATP storage testing within 20 business days after the testing starts; and
(b)the testing is carried out after the end date for the testing only with the Minister’s approval.
(3)Subject to subsection (4), the Minister may, at any time, approve the carrying out after the end date for ATP storage testing (the original ATP storage testing) of further ATP storage testing and the approval is subject to the conditions the Minister considers appropriate.
(4)An approval may not be given under subsection (3) more than 1 day before the end date for the original ATP storage testing.
(5)If the Minister decides not to approve the carrying out of further ATP storage testing, the Minister must give the authority to prospect holder an information notice about the decision.
(6)Despite subsections (1) to (3), an authority to prospect holder must not carry out GHG stream storage.

71CAuthority to prospect holder must notify chief executive if testing stops

If an authority to prospect holder stops carrying out any ATP production testing or ATP storage testing within the area of the authority for a continuous period of 14 days or more, the holder must give the chief executive a notice, containing the information prescribed by regulation, in relation to the testing within 20 business days after the testing stops.

Subdivision 3 Other mandatory conditions

72Restriction on flaring or venting

(1)An authority to prospect holder must not flare or vent petroleum in a gaseous state produced under the authority unless the flaring or venting is authorised under this section.
(2)Flaring the gas is authorised if it is not commercially or technically feasible to use it—
(a)commercially under the authority; or
(b)for an authorised activity for the authority.
(3)Venting the gas is authorised if—
(a)it is not safe to use the gas for a purpose mentioned in subsection (2)(a) or (b) or to flare it; or
(b)flaring it is not technically practicable.

75Petroleum royalty and annual rent

(1)An authority to prospect holder must pay the State—
(a)petroleum royalty as required under chapter 6; and
(b)the annual rent, as prescribed under a regulation.
(2)The annual rent must be paid in the way, and on or before the day, prescribed under a regulation.

76Civil penalty for nonpayment of annual rent

(1)If an authority to prospect holder does not pay the annual rent as required under section 75, the holder must also pay the State a civil penalty.
(2)The amount of the penalty is 15% of the rent.
(3)The penalty—
(a)must be paid on the day after the last day for payment of the rent; and
(b)is still payable even if the holder later pays the rent.

77Requirement to have work program

The holder of an authority to prospect must have a work program for the authority.

Notes—

1The only work program for an authority to prospect is its current initial or later work program, as approved under division 3.
2For the requirements to lodge a proposed later work program see sections 79, 100, 104, 372 and 790.
3For approval of proposed later work programs see division 3, subdivision 5.

78Compliance with work program

The holder of an authority to prospect must comply with the work program for the authority.

78Compliance with exploration activities in work program

An authority to prospect holder must carry out the exploration activities proposed in the work program.

Note—

For the minimum work commitment, see section 48(1)(b)(i).

See also section 56 (Authority taken to have work program until decision on whether to approve proposed work program).

78APenalty relinquishment if work program not completed within extended period

(1)If—
(a)under division 3, subdivision 6, the period of the work program for an authority to prospect has been extended; and
(b)the work program is not completed on or before the day on which the extended period ends;

its holder must relinquish a part of the original notional sub-blocks of the authority that the Minister is satisfied corresponds to the amount of the work under the work program that was not completed.

(2)The holder must give the chief executive written notice of the relinquishment within 20 business days after the end of the extended period.

Note—

For other relevant provisions about giving a document to the chief executive, see section 851AA.
(3)If the holder does not comply with subsection (2), the Minister may take action under section 790(1)(b).

79Obligation to lodge proposed later work program

(1)This section imposes an obligation on an authority to prospect holder to lodge a proposed later work program for the authority.

Notes—

1For approval of the proposed program, see division 3, subdivision 5.
2If the holder wishes to renew the authority, a proposed later work program must be included in the renewal application. See section 82(1).
(2)The obligation is complied with only if the proposed later work program—
(a)is lodged; and
(b)complies with the later work program requirements; and
(c)is accompanied by the relevant fee.
(3)A proposed later work program must be lodged at least 40, but no more than 100, business days before the end of the program period for the current work program for the authority (the current work program period).
(4)However, if before the end of the current work program period, a decision is made not to approve a proposed later work program lodged under subsection (3), the holder may, within the eligible balance of the period, lodge another proposed later work program.
(5)If the holder does not lodge any proposed later work program before the end of the current work program period or if subsection (4) applies and the holder does not lodge another proposed later work program within the eligible balance of the current work program period—
(a)the holder must be given a notice requiring the holder to lodge a proposed later work program for the authority within 40 business days after the giving of the notice; and
(b)the holder must comply with the requirement.
(6)In this section—
eligible balance, for a current work program period during which a decision mentioned in subsection (4) is made, means the balance of the period, other than the appeal period for the decision.
relevant fee, for the lodgement of the proposed program, means—
(a)if the proposed program is lodged within the time required under subsection (3)—the fee prescribed under a regulation; or
(b)if the proposed program is lodged after the time required under subsection (3)—
(i)if it is lodged under subsection (4)—nil; or
(ii)if it is not lodged under subsection (4)—an amount that is 10 times the prescribed fee.

80Consequence of failure to comply with notice to lodge proposed later work program

(1)If an authority to prospect holder does not comply with a requirement under section 79(5)(a), the authority is cancelled.
(2)However, the cancellation does not take effect until the holder is given a notice stating that the authority has been cancelled because of the operation of subsection (1).

Division 5 Renewals

81Conditions for renewal application

(1)An authority to prospect holder may apply to renew the authority only if none of the following is outstanding—
(a)annual rent for the authority;
(b)a civil penalty under section 76 for nonpayment of annual rent;
(c)interest payable under section 588 on annual rent or a civil penalty;
(d)a royalty-related amount payable by the holder;
(e)security required for the authority, as required under section 488.
(2)Also, the application can not be made—
(a)more than 60 business days before the end of the term of the authority; or
(b)after the authority has ended.

82Requirements for making application

(1)The application must—
(a)be in the approved form; and
(b)state whether or not the work program for the authority to prospect has been complied with; and
(c)if the work program has not been complied with—state details of, and the reasons for, each noncompliance; and
(d)include a proposed later work program for the renewed authority; and
(e)address the capability criteria; and
(f)include information about the matters that, under sections 84 and 86, must or may be considered in deciding the application; and
(g)state whether or not the applicant has complied with chapter 5, part 7, for reports required to be lodged in relation to the authority; and
(h)be accompanied by—
(i)the application fee prescribed under a regulation; and
(ii)if the application is made less than 20 business days before end of the term of the authority—an amount that is 10 times the application fee.
(2)The proposed work program must comply with the later work program requirements.

83Continuing effect of authority for renewal application

(1)This section applies if before the application is decided the term of the authority to prospect ends.
(2)Despite the ending of the term, the authority continues in force until the earlier of the following to happen—
(a)the start of any renewed term of the authority;
(b)a refusal of the application takes effect;
(c)the application is withdrawn;
(d)the authority is cancelled under this Act.
(3)Also, if the applicant has applied for a declaration of a potential commercial area for the authority, the authority continues in force until the declaration application is decided, but only in relation to the area of the proposed potential commercial area applied for.
(4)If the authority is continued in force under subsection (3), the evaluation program included in the declaration application is taken to be the work program for the authority.
(5)If the authority is renewed, subsections (2) and (3) are taken never to have applied for the period from the end of the term of the authority being renewed, as stated in that authority.

84Deciding application

(1)The Minister may grant or refuse the renewal.
(2)However—
(a)before deciding to grant the renewal, the Minister must decide whether to approve the applicant’s proposed later work program for the renewed authority to prospect; and
(b)the renewal can not be granted unless—
(i)the proposed program has been approved; and
(ii)the applicant satisfies the capability criteria; and
(iii)the Minister is satisfied the applicant—
(A)continues to satisfy any special criteria that applied for deciding the application for the authority to prospect being renewed; and

Note—

See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).h)(iii) and 43.
(B)has substantially complied with the authority to prospect being renewed; and
(iv)a relevant environmental authority for the renewed authority to prospect has been issued.

Note—

If the application relates to acquired land, see also section 30AC.
(3)Also, if the applicant has been given a notice under section 96 to apply for a petroleum lease, the application must not be decided until the issue of whether a petroleum lease will be granted is decided.
(4)Subsection (3) does not limit the power under section 97 to take a proposed action as stated in the notice.
(5)Subsection (6) applies if, after considering the proposed later work program mentioned in subsection (2)(a), the Minister considers a work program of another type mentioned in section 45(1) is more appropriate for the exploration of the area of the permit, if renewed.
(6)Before deciding the application, the Minister may, by written notice given to the applicant, require the applicant to give the Minister, within the reasonable period stated in the notice, a proposed work program of another type mentioned in section 45(1) for the further term of the permit, if renewed.
(57)The Minister may, as a condition of deciding to grant the application, require the applicant to do all or any of the following within a stated reasonable period—
(a)pay the annual rent for the first year of the renewed authority;
(b)give, under section 488, security for the renewed authority.
(68)If the applicant does not comply with the requirement, the application may be refused.

85Provisions and term of renewed authority

(1)Subject to this section, section 42 applies to the renewed authority to prospect as if it were an authority to prospect granted under division 2.
(2)To remove any doubt, it is declared that the conditions of the renewed authority may be different from the conditions or other provisions of the authority to prospect being renewed.
(3)The area of the renewed authority must not be more than the area of the authority to prospect being renewed immediately before the renewed authority is to take effect.

Note—

See, however, section 30AC(3) in relation to acquired land that was previously in the area of the authority to prospect being renewed.
(4)The first relinquishment day for the renewed authority must not be later than 4 years after the day the renewed authority is to take effect.
(54)If the renewed authority is decided before the end of the term of the authority to prospect being renewed as stated in that authority (the previous term), the term of the renewed authority is taken to start from the end of the previous term.
(65)If the renewed authority is decided after the previous term, the term of the renewed authority starts immediately after the end of the previous term, but—
(a)the conditions of the renewed authority do not start until the authority holder is given notice of them; and
(b)until the notice is given, the conditions of the authority to prospect being renewed apply to the renewed authority as if they were its conditions.
(76)The term of the renewed authority must not end more than 12 years from when the authority to prospect originally took effect.
(87)However, if any part of the area of the renewed authority is a potential commercial area, the term of the renewed authority for that part may be for a longer period that—
(a)ends no later than when the declaration ends; and
(b)is no more than the last term of the authority being renewed.
(98)To remove any doubt, it is declared that subsection (8)(b) does not prevent a renewal of the renewed authority.7)(b) does not prevent a renewal of the renewed authority.

86Criteria for decisions

The matters that must be considered in deciding whether to grant the renewal or deciding the provisions of the renewed authority include—
(a)the work program criteria; and
(b)whether the applicant continues to satisfy the capability criteria and any special criteria.

87Information notice about refusal

On refusal of the application, the applicant must be given an information notice about the decision to refuse.

88When refusal takes effect

A refusal of the application does not take effect until end of the appeal period for the decision to refuse.

Division 6 Potential commercial areas

89Applying for potential commercial area

(1)The holder of an authority to prospect may apply for a declaration by the Minister that all or a stated part of the area of the authority is a potential commercial area for the authority.
(2)The application must be—
(a)in the approved form; and
(b)accompanied by the fee prescribed under a regulation.
(3)The application may be made—
(a)for more than 1 part of the area of the authority to prospect; and
(b)even if another part of the area of the authority is already a potential commercial area.
(4)However, each part to which the application relates must be part of the same authority to prospect.
(45)The application must include—
(a)a report for, or that includes, the proposed potential commercial area that—
(i)meets the requirements under section 231 for a commercial viability report; and
(ii)is still relevant to the circumstances of the proposed potential commercial area; and
(b)an evaluation program for—
(i)potential petroleum production or storage in the proposed potential commercial area; and
(ii)market opportunities for potential production or storage; and
(c)information about the compliance or noncompliance with the conditions of the authority.
(56)However, subsection (4)(a) does not apply if—5)(a) does not apply if—
(a)a commercial viability report or an independent viability assessment relates to, or includes the proposed potential commercial area; and
(b)the report or assessment is still relevant to the circumstances of the proposed potential commercial area.

90Deciding potential commercial area application

(1)The Minister may declare an area the subject of the application to be a potential commercial area only if satisfied—
(a)the area is no more than is needed to cover the maximum extent of a natural underground reservoir identified in the report; and
(b)petroleum production or storage in the area to be declared, is not, and will not soon be, commercially viable, but is likely to become viable within 15 years.

Note—

See section 85(6)(b) (Provisions and term of renewed authority).
(2)Also, the area declared must form a single parcel of land.
(2)Also, the area declared—
(a)must not be for more than 75 sub-blocks; and
(b)must form a single parcel of land.
(3)In deciding the application, regard must be had to whether the conditions of the relevant authority to prospect have been substantially complied with.
(4)On refusal of the application, the applicant must be given an information notice about the decision to refuse.
(5)To remove any doubt, it is declared that the declaration may be made even if the authority to prospect has been continued in force under section 83 or 119.

91Inclusion of evaluation program in work program

(1)If the declaration is made, the evaluation program that accompanied the application is taken to be an additional part of the existing work program for the authority to prospect.

Note—

For requirements about the evaluation program in later work programs, see section 53.
(2)If there is an inconsistency between the evaluation program and the rest of the work program, the evaluation program prevails to the extent of the inconsistency.

92Term of declaration

(1)Subject to section 93, a declaration of a potential commercial area continues in force for—
(a)15 years from the making of the declaration; or
(b)if the declaration states a shorter period during which it is to be in force—the shorter period.
(2)The matters that must be considered in deciding the shorter period include—
(a)when any petroleum discovery was made; and
(b)any commercial viability report or independent viability assessment for, or that includes, the proposed potential commercial area.
(3)Despite subsection (1), the declaration ceases if the authority to prospect holder lodges a notice that the holder no longer wishes the area to be a potential commercial area.

Note—

See also section 102 (Effect of ending of declaration of potential commercial area).

93Extension of term of declaration

(1)If—
(a)a declaration of a potential commercial area is in force for the area of an authority to prospect; and
(b)under the Mineral Resources Act, chapter 8, part 2 or 3, a coal or oil shale mining lease has been granted over the area;

the Minister may, on the application of the authority to prospect holder, extend the term of the declaration for a period that ends no later than 2 years after the mining lease, or any renewal of the mining lease, ends.

(2)The application must be accompanied by the fee prescribed under a regulation.
(3)On refusal of the application, the applicant must be given an information notice about the decision to refuse.

94Potential commercial area still part of authority

A declaration of a potential commercial area does not change the land the subject of the declaration from being—
(a)part of the area of the authority to prospect the subject of the application for the declaration; and
(b)subject to the authority.

Division 7 Provisions to facilitate transition to petroleum lease

95Application of div 7

This division applies if the Minister reasonably considers the holder of an authority to prospect should apply for a petroleum lease for all or part of the area of the authority because—
(a)petroleum production in the area—
(i)is currently commercially viable; or
(ii)is likely to become commercially viable within 2 years; or
(b)a natural underground reservoir in the area is, or is likely to have, commercial storage potential.

96Ministerial direction to apply for petroleum lease

(1)The Minister may give the authority holder a notice stating each of the following—
(a)that the Minister proposes to do either of the following, (the proposed action) unless the holder has made an appropriate lease application—
(i)excise a stated area from the area of the authority;
(ii)cancel the authority;
(b)the grounds for the proposed action;
(c)the facts and circumstances forming the basis for the grounds;
(d)that the holder may, within a stated period, lodge submissions about why the holder should not make a petroleum lease application for the stated area.
(2)The stated period must be reasonable, but must not be more than 6 months.
(3)In this section—
appropriate lease application means a petroleum lease application for—
(a)the stated area or an area that is substantially the same as the stated area; or
(b)another area the Minister reasonably considers will effectively allow the holder to carry out authorised activities for a petroleum lease in relation to the stated area.

97Taking proposed action

(1)Proposed action under section 96 may be taken only if—
(a)the stated period under section 96 has ended; and
(b)either—
(i)the holder has not made an appropriate petroleum lease application under section 96; or
(ii)any appropriate lease application under section 96 made by the holder has been refused; and
(c)the Minister has considered any submissions lodged by the holder within the period.
(2)The decision does not take effect until the holder is given an information notice about the decision.
(3)A refusal of the application takes effect at end of the appeal period for the decision to refuse.

Division 8 Miscellaneous provisions

Subdivision 1 Area provisions

98Area of authority to prospect

(1)This section provides for the area of an authority to prospect.
(2)The area does not include excluded land for the authority.

Note—

See also section 30AB(3) if land in the authority to prospect’s area is taken under a resumption law.
(3)Unless the Minister otherwise decides, the area must form a single parcel of land.
(4)The area must not include any of the following (unavailable land)—
(a)land in the area of another petroleum tenure;
(b)excluded land for another petroleum tenure;
(c)land in the area of a 1923 Act petroleum tenure;
(d)excluded land for a 1923 Act petroleum tenure;
(e)land that a regulation prescribes as land over which an authority to prospect can not be granted.
(5)To remove any doubt, it is declared that if land within the original notional sub-blocks of the authority ceases to be unavailable land, the cessation itself does not cause the land to be within the area of the authority.
(6)The area may include a part of a block only if the part is all areas within the block that are left after taking away all unavailable land within the block (a residual block).

Note—

See also section 30AB(3) if land in the authority to prospect’s area is taken under a resumption law.
(7)The area must be no more than 100 blocks or residual blocks, in any combination.

99Minister’s power to decide excluded land

(1)The Minister may decide excluded land for an authority to prospect or proposed authority to prospect.
(2)However, the power under subsection (1) may be exercised only when the Minister is deciding whether to—
(a)grant or renew the authority; or
(b)approve any later work program for the authority.
(3)However, excluded land—
(a)must be within the original notional sub-blocks of the authority; and
(b)can not be a whole block.
(4)For subsection (3)(a), if the register—
(a)states that the authority’s area includes land within a block; but
(b)does not include or exclude any particular sub-block within that block;

the reference to the block in the register is a reference to all sub-blocks within the block, other than any sub-block that is completely within the area of another petroleum tenure or a 1923 Act petroleum tenure.

(5)Excluded land may be described in a way the Minister considers appropriate, including, for example, by area or by reference to a stated type of land.
(6)Land ceases to be excluded land for an authority to prospect if—
(a)the block in which the land is located is relinquished or, for any other reason, ceases to be in the area of the authority; or
(b)a petroleum lease is granted over any of the area of the authority and the land is excluded land for the lease.

100Minister may add excluded land

(1)The Minister may amend an authority to prospect by adding excluded land for the authority to its area only if—
(a)the authority as amended complies with section 98; and
(b)the authority holder consents.
(2)If land mentioned in subsection (1) is added to the area of the authority the land ceases to be excluded land for the authority.
(3)The Minister may amend the provisions of the authority in a way that reflects the inclusion of the excluded land.
(4)Also, the Minister may give the authority holder a notice—
(a)withdrawing, from a stated day, the approval of the work program for the authority; and
(b)directing the holder to lodge a proposed later work program for the authority that—
(i)complies with the later work program requirements; and
(ii)changes the work program for the authority to reflect the inclusion of the excluded land.
(5)The amended provisions of the authority or the proposed later work program must not be—
(a)inconsistent with the mandatory conditions for authorities to prospect; or
(b)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the authority.

101Area of authority to prospect reduced on grant of petroleum lease

(1)Land ceases to be included in the area of an authority to prospect if a petroleum lease is granted over the land.
(2)If a petroleum lease is granted over all of the area of an authority to prospect, the authority ends.

Note—

See however chapter 3, part 4, division 3 (Exceptions to particular area provisions).

102Effect of ending of declaration of potential commercial area

(1)This section applies if all or part of the area of an authority to prospect is a potential commercial area and the declaration of the potential commercial area ends more than 12 years after the authority originally took effect.
(2)If the declaration applied to a part of the area of the authority, the part ceases to be included in its area.
(3)If the declaration applies to all of the area of the authority, the authority ends.

Note—

If the declaration ends less than 12 years after the authority originally took effect, see section 94.

Subdivision 2 Dividing authorities to prospect

103Applying to divide

(1)The holder of an authority to prospect (the original authority) may apply to divide it into 2 or more authorities to prospect (the new authorities).
(2)However, the holder may apply for a new authority to be granted to another person only if the other person—
(a)agrees to the proposed grant; and
(b)is an eligible person.
(3)Despite subsections (1) and (2), the holder can not make the application if any of the following is outstanding—
(a)annual rent for the original authority;
(b)a civil penalty under section 76 for nonpayment of annual rent;
(c)interest payable under section 588 on annual rent or a civil penalty;
(d)a royalty-related amount payable by the holder;
(e)security for the original authority, as required under section 488.

104Requirements for making application

The application must—
(a)be in the approved form; and
(b)state whether or not the work program for the original authority to prospect has been complied with; and
(c)if the work program for the original authority has not been complied with—state details of, and the reasons for, each noncompliance; and
(d)include a proposed later work program for each proposed new authority; and

Note—

For an additional requirement for the proposed work programs, see section 54.
(e)address the capability criteria for each proposed holder of the new authorities; and
(f)state whether or not the holder has complied with chapter 5, part 7, for reports required to be lodged in relation to the original authority; and
(g)be accompanied by the fee prescribed under a regulation.

105Deciding application

(1)The Minister may make or refuse to make the division.
(2)However—
(a)before deciding to make the division, the Minister must decide whether to approve the proposed later work programs for the new authorities; and
(b)the division can not be granted unless—
(i)the proposed programs have been approved; and
(ii)each proposed holder of the new authorities satisfies the capability criteria; and
(iii)the Minister is satisfied the applicant continues to satisfy any special criteria that applied for deciding the application for the original authority; and

Note—

See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).h)(iii) and 43.
(iv)the Minister is satisfied the applicant has substantially complied with the original authority.
(3)The matters that must be considered in making the division include the work program for the original authority, the proposed later work programs and the capability criteria.
(4)The Minister may, as a condition of making the division, require the applicant to, under section 488, give security or additional security for all or any of the new authorities within a stated reasonable period.
(5)If the applicant does not comply with the requirement, the division may be refused.

106Provisions of new authorities

(1)Subject to this section, section 42 applies for the provisions of a new authority as if it were an authority to prospect granted under division 2.
(2)However—
(a)the term of each new authority must not end later than the end of the term of the original authority; and
(b)the new authorities must have the same relinquishment days as the original authority.
(3)For the relinquishment condition for the new authorities—
(a)the new authorities are taken to have originally taken effect when the original authority originally took effect; and
(b)the original notional sub-blocks of the original authority are divided rateably between the new authorities; and
(c)for working out previous relinquishments that are counted for the relinquishment condition for each new authority, the relinquishments previously counted for the relinquishment condition for the original authority are divided rateably between the new authorities.

107Steps after deciding application

(1)After the provisions of the new authorities are decided, the applicant and anyone else who will be a holder of any new authority, must be given notice of the relevant provisions and work program.

Note—

For noncompliance action started, or that could have been taken, against the original authority holder, see section 792.
(2)On refusal to make the division, the applicant must be given notice of the refusal.

Subdivision 2A Amalgamating potential commercial areas

107AA Applying to amalgamate

(1)The holder of an authority to prospect may apply to the Minister to amalgamate 2 or more potential commercial areas for the authority to prospect into a single potential commercial area for the authority to prospect (the amalgamated potential commercial area).
(2)The holder can not make an application under subsection (1) if—
(a)the holder has not complied with a provision of this Act; or
(b)any of the following amounts is outstanding in relation to the authority to prospect—
(i)annual rent;
(ii)a civil penalty under section 76 for non-payment of annual rent;
(iii)interest payable under section 588 on annual rent or a civil penalty;
(iv)a royalty-related amount payable by the holder;
(v)security required under section 488.

107AB Requirements for making application

The application must—
(a)be in the approved form; and
(b)include a report for, or that includes, the proposed amalgamated potential commercial area that—
(i)meets the requirements under section 231 for a commercial viability report; and
(ii)is still relevant to the circumstances of the proposed amalgamated potential commercial area; and
(c)include a proposed evaluation program for—
(i)potential petroleum production or storage in the proposed amalgamated potential commercial area; and
(ii)market opportunities for the potential petroleum production or storage mentioned in subparagraph (i); and
(d)be accompanied by the fee prescribed by regulation.

107AC Deciding application

(1)The Minister may declare the amalgamated potential commercial area for the authority to prospect only if satisfied the area is no more than is needed to cover the maximum extent of a natural underground reservoir identified in the report mentioned in section 107AB(b).
(2)Also—
(a)before deciding to declare the amalgamated potential commercial area for the authority to prospect, the Minister must decide whether to approve the proposed evaluation program for the amalgamated potential commercial area; and
(b)the amalgamated potential commercial area can not be declared unless—
(i)the proposed evaluation program for the amalgamated potential commercial area has been approved; and
(ii)the Minister is satisfied the holder of the authority to prospect—
(A)continues to satisfy the capability criteria that applied in relation to the authority; and
(B)continues to satisfy any special criteria that applied in relation to the authority; and
(C)has substantially complied with the conditions of the authority.
(3)The Minister may, as a condition of declaring the amalgamated potential commercial area for the authority to prospect, require the applicant to give security or additional security for the authority to prospect, under section 488, within a stated reasonable period.
(4)If the applicant does not comply with a requirement under subsection (3), the application may be refused.

107AD Term of declaration

A declaration of an amalgamated potential commercial area for an authority to prospect continues in force for 15 years from the making of the latest of the declarations of the potential commercial areas for the authorities to prospect that have been amalgamated.

107AE Steps after deciding application

(1)If the Minister decides to declare the amalgamated potential commercial area for the authority to prospect, the Minister must give the holder of the authority to prospect notice of—
(a)the term of the declaration; and
(b)the evaluation program approved for the amalgamated potential commercial area.
(2)If the Minister decides to refuse to declare the amalgamated potential commercial area for the authority to prospect, the Minister must give the applicant an information notice for the decision.

Subdivision 3 Special amendment of relinquishment requirements or work program

107AApplication for special amendment

(1)The holder of an authority to prospect may apply to the Minister to approve an amendment (a special amendment) of either or both of the following—
(a)the operation of the relinquishment requirements for the authority to prospect;
(b)the work program for the authority to prospect.
(2)However, the holder may apply for the special amendment only if the special amendment is necessary because of—
(a)an exceptional event affecting the authority; or
(b)circumstances arising from the authority forming part of an exploration project.
(3)The application must state the event mentioned in subsection (2)(a), or the circumstances mentioned in subsection (2)(b), and how the event or circumstances justify the special amendment.
(2)The application must state the circumstances that exist in relation to the authority to prospect and how the circumstances justify the special amendment.

Example—

A special amendment of an authority to prospect might be justified on the basis the amendment is appropriate because the authority forms part of a wider project.
(34)The application must be accompanied by the prescribed fee.

107BSpecial amendment of relinquishment requirements

(1)If the Minister approves a special amendment of the operation of the relinquishment requirements for an authority to prospect, the relinquishment requirements have effect subject to the special amendment.
(2)In approving the special amendment, the Minister may also approve a change of the conditions of the authority to prospect.
(3)On the day the approval takes effect, the change of the conditions also takes effect.

107CSpecial amendment of work program

(1)If the Minister approves a special amendment of the work program for an authority to prospect, the work program as amended has effect as if the amendment had been approved under division 3, subdivision 6.
(2)In approving the special amendment, the Minister may also approve a change of the conditions of the authority to prospect.
(3)On the day the approval takes effect, the change of the conditions also takes effect.

107DApproval of special amendment

(1)The Minister may approve a special amendment under this subdivision if the Minister considers the amendment is justified by an event mentioned in thesection 107A(2)(a) or circumstances mentioned in section 107A(2)(b).
(2)Without limiting the matters the Minister may have regard to, the Minister may have regard to—
(a)the optimisation of the development and use of the State’s petroleum resources; and
(b)whether, in the circumstances, the relinquishment requirements or the work program amendment provisions allow for sufficient flexibility to achieve the optimisation mentioned in paragraph (a).

Part 2 Petroleum leases

Division 1 Key authorised activities

Subdivision 1 General provisions

108Operation of sdiv 1

(1)This subdivision provides for the key authorised activities for a petroleum lease.

Notes—

1For other authorised activities, see chapter 2, part 4, chapter 5, part 8 and the Common Provisions Act, chapter 3, part 2.
2The carrying out of particular activities on particular land in a petroleum lease’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.
(2)The authorised activities may be carried out despite the rights of an owner or occupier of land on which they are exercised.
(3)However, the carrying out of the authorised activities is subject to—
(a)section 6; and
(b)subdivision 2; and
(c)chapter 3A, part 5; and
(d)chapter 3, part 5, division 1; and
(e)chapters 5 and 9; and
(f)the mandatory and other conditions of the lease; and
(g)any exclusion or restriction provided for in the lease on the carrying out of the activities; and
(h)any other relevant Act or law.

109Exploration, production and storage activities

(1)The lease holder may carry out the following activities in the area of the lease—
(a)exploring for petroleum;
(b)subject to sections 150A and 150C—
(i)testing for petroleum production; and
(ii)evaluating the feasibility of petroleum production; and
(iii)testing natural underground reservoirs for storage of petroleum or a prescribed storage gas;
(c)petroleum production;
(d)evaluating, developing and using natural underground reservoirs for petroleum storage or to store prescribed storage gases, including, for example, to store petroleum or prescribed storage gases for others;
(e)plugging and abandoning, or otherwise remediating, a bore or well the lease holder reasonably believes is a legacy borehole and rehabilitating the surrounding area in compliance with the requirements prescribed under a regulation.
(2)However, the holder must not carry out any of the following—
(a)extraction or production of a gasification or retorting product from coal or oil shale by a chemical or thermal process;
(b)exploration for coal or oil shale to carry out extraction or production mentioned in paragraph (a);
(c)GHG stream storage.
(3)The rights under subsection (1) may be exercised only by or for the holder.

Note—

See also section 800 (Restriction on petroleum tenure activities).

For who may exercise the rights for the holder, see section 563.

(4)The right to store petroleum or prescribed storage gases for others is subject to part 6.

110Construction and operation of petroleum pipelines

(1)The lease holder may construct and operate petroleum pipelines in the area of the lease.
(2)However, if a petroleum pipeline extends beyond the area of the lease, subsection (1) applies only if the pipeline is completely within—
(a)the area of the lease; and
(b)the area of 1 or more other petroleum leases that—
(i)are also held by the holder of the lease; or
(ii)are the subject of a coordination arrangement between the holder of the lease and the holder of each other lease.
(3)In this section—
petroleum pipeline means a pipeline as defined under section 16 other than a pipeline for transporting a GHG stream.

Notes—

1See also the GHG storage Act, section 386 (Restriction on GHG storage activities).
2For the granting of licences under this Act for pipelines for GHG streams, see sections 16, 394, 400 and 402.

111Petroleum processing

(1)The lease holder may—
(a)carry out the processing of petroleum in the area of the lease; and
(b)construct and operate a facility for the processing, storage or transport of petroleum in the area of the lease.
(2)Subsection (1) applies for petroleum produced in or outside the area.
(3)In this section—
processing of petroleum—
(a)includes the separation of LPG only if the separation is incidental to other petroleum processing; and
(b)does not include refining petroleum.

111AProcessing produced water

(1)The lease holder may do each of the following in the area of the lease—
(a)carry out the processing of produced water;
(b)construct and operate a facility for the processing and storage of produced water.
(2)Subsection (1) applies for produced water—
(a)produced in or outside the area of the lease; and
(b)whether or not it is produced by the lease holder.
(3)In this section—
processing of produced water includes—
(a)treating produced water; and
(b)applying mechanical or chemical processes, or energy, to produced water.

112Incidental activities

(1)The lease holder may carry out an activity (an incidental activity) in the area of the lease if carrying out the activity is reasonably necessary for, or incidental to—
(a)another authorised activity for the lease; or
(b)an authorised activity for another petroleum lease or an authority to prospect.

Examples of incidental activities—

1constructing or operating plant or works, including, for example, communication systems, compressors, powerlines, pumping stations, reservoirs, roads, evaporation or storage ponds and tanks
2constructing or using temporary structures or structures of an industrial or technical nature, including, for example, mobile and temporary camps
3removing vegetation for, or for the safety of, exploration or testing under section 150A(1) or 150C(1)

Note—

See also part 10, section 239, chapter 5 and section 20(2).
(2)However, constructing or using a structure, other than a temporary structure, for office or residential accommodation is not an incidental activity.

Note—

For development generally, see the Planning Act 2016, chapter 3.

Subdivision 2 Provisions for coextensive natural underground reservoirs

113Application of sdiv 2

This subdivision applies if a natural underground reservoir in the area of a petroleum lease extends to—
(a)the area of an adjacent petroleum lease or coal or oil shale mining lease (an adjacent lease); or
(b)if a person has applied for a petroleum lease, coal mining lease or oil shale mining lease that will, if granted, be an adjacent lease—the area of the proposed lease.

Note—

See also section 52A (Application of 2004 Act provisions about coextensive natural underground reservoirs) of the 1923 Act.

114Coordination arrangement may be made about mining or production from reservoir

The petroleum lease holder and an adjacent lease holder, or proposed adjacent lease holder, may make a coordination arrangement that provides for the petroleum that can, under the Mineral Resources Act or this Act, be produced from the reservoir from within the area of the petroleum lease and the adjacent lease, or proposed adjacent lease.

Notes—

1See the Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas).
2For the making of coordination arrangements, see part 8.

115Restriction on carrying out particular authorised activities

(1)The petroleum lease holder must not carry out a relevant activity for an adjacent lease or proposed adjacent lease unless—
(a)the adjacent lease holder, or the proposed adjacent lease holder, has consented in writing to the carrying out of the activity; or
(b)the activity is carried out under—
(i)a coordination arrangement mentioned in section 114; or
(ii)a decision of the Land Court under section 116.
(2)However, if the adjacent lease was granted after the petroleum lease was granted and, when the adjacent lease was granted, the petroleum lease holder was carrying out the relevant activity, subsection (1) does not apply to the petroleum lease holder until the later of the following—
(a)6 months after granting of the adjacent lease;
(b)if within the 6 months the petroleum lease holder applies to the Land Court under section 116—when the Land Court decides the application.
(3)In this section—
relevant activity, for an adjacent lease or proposed adjacent lease, means—
(a)the production, under the petroleum lease, of petroleum that comes, or is likely to come, from the part of the reservoir that is in the area of an adjacent lease or the proposed adjacent lease; or
(b)another authorised activity under the petroleum lease that physically adversely affects, or may physically adversely affect, the carrying out of authorised activities under an adjacent lease or the proposed adjacent lease.

116Dispute resolution by Land Court

(1)This section applies if—
(a)an adjacent lease holder, or the proposed adjacent lease holder, has not consented in writing to the carrying out of a relevant activity under section 115; and
(b)the petroleum lease holder and the adjacent lease holder or proposed adjacent lease holder (the parties) have not made a coordination arrangement mentioned in section 114.
(2)Either party may apply to the Land Court for it to decide—
(a)the amount or proportion of petroleum mentioned in section 114 that, when produced, is owned by each party; and
(b)how the parties are to bear the costs of the production; and
(c)how the production is to be coordinated or monitored; and

Example for paragraph (c)—

fixing a minimum distance from the boundary between the petroleum lease and the adjacent lease for petroleum production from the reservoir under the petroleum lease
(d)remediation requirements, as prescribed under a regulation, in relation to the matters mentioned in section 115(3), definition relevant activity, paragraph (b).
(3)If the adjacent lease was granted after the petroleum lease was granted, the decision may apply from the grant of the adjacent lease.
(4)In making the decision, the Land Court—
(a)must consider whether the safety of production activities on any adjoining mining or petroleum lease would be compromised; and
(b)must attempt to optimise petroleum production under the petroleum lease and mining or production under the adjacent lease in a way that maximises the benefit for all Queenslanders; and
(c)may make the decision without having regard to the issue of who would have, under another Act or law, otherwise owned the petroleum.
(5)In considering the benefit to all Queenslanders, the Land Court must have regard to the public interest.

Division 2 Transition from authority to prospect to petroleum lease

Subdivision 1 Applying for petroleum lease

117Who may apply

(1)An authority to prospect holder or a 1923 Act ATP holder may apply for a petroleum lease over all or part of the area of the authority.

Note—

For inclusion of acquired land that was previously in the authority to prospect’s or 1923 Act ATP’s area, see section 30AC(3).
(2)Also, a person other than the holder may apply for the lease—
(a)jointly with the holder; or
(b)with the holder’s consent.
(3)An application under this section is an ATP-related application.

118Requirements for making ATP-related application

An ATP-related application must—
(a)be in the approved form; and
(b)address the capability criteria; and
(c)include each of the following—
(i)a statement about why the size of the proposed area of the proposed petroleum lease is appropriate for authorised activities under the lease;
(ii)information about the matter under section 121(2) on which the applicant seeks to rely to establish the requirements for the grant;
(iii)a proposed development plan that complies with the initial development plan requirements; and
(d)include information to satisfy the requirements for grant mentioned in section 121; and
(e)if the proposed authorised activities relate to petroleum production—include a statement by a suitably qualified person that the proposed area contains commercial quantities of petroleum; and
(f)be accompanied by the fee prescribed under a regulation.

119Continuing effect of authority to prospect for ATP-related application

(1)This section applies if, other than for subsection (2), the relevant authority to prospect would, other than by cancellation under this Act, end before the ATP-related application is decided.
(2)The authority continues in force in relation to the area the subject of the application until the earlier of the following to happen—
(a)the start of the term of the petroleum lease;
(b)a refusal of the ATP-related application takes effect;
(c)the application is withdrawn.
(3)Despite any ending of the program period for the current work program for the authority—
(a)the authority is taken to have a work program; and
(b)the holder may carry out any authorised activity for the authority.

Subdivision 2 Deciding ATP-related applications

120Right to grant if requirements for grant met

(1)Subject to sections 122 and 123A, the Minister must grant the petroleum lease if the Minister is satisfied the requirements mentioned in section 121 (the requirements for grant) have been complied with.

Note—

If the application relates to acquired land that was previously in the relevant authority to prospect’s or 1923 Act ATP’s area, see also section 30AC.
(2)The lease must be refused if the Minister is not satisfied any requirement for grant, other than the requirement mentioned section 121(1)(c), has been complied with.
(3)If the Minister is satisfied the requirements for grant, other than the requirement mentioned section 121(1)(c), have been complied with, the Minister may grant the lease.

121Requirements for grant

(1)The requirements for grant are each of the following—
(a)the applicant is an eligible person;
(b)the proposed area of the proposed petroleum lease—
(i)is appropriate for the authorised activities proposed to be carried out; and
(ii)if the authorised activities relate to petroleum production—contains commercial quantities of petroleum; and
(iii)if the authorised activities relate to storage of petroleum or a prescribed storage gas—contains an adequately identified natural underground reservoir that is adequate for the proposed purpose of the lease;
(c)the conditions of the relevant authority to prospect have been substantially complied with;
(d)the Minister has approved the applicant’s proposed initial development plan for the lease;
(e)the Minister is of the opinion that the applicant is capable of carrying out authorised activities for the lease, having regard to the applicant’s—
(i)financial and technical resources; and
(ii)ability to manage petroleum exploration and production;
(f)a relevant environmental authority for the lease has been issued;
(g)the applicant has established 1 of the matters mentioned in subsection (2);
(h)the applicant has paid the annual rent for the first year of the proposed lease;
(i)the applicant has given, under section 488, security for the lease.
(2)For subsection (1)(g), the matters are any of the following—
(a)commercial petroleum production in the area of the lease is, or is likely, within 2 years after the lease is to take effect;
(b)the applicant has—
(i)entered into a contract, coordination arrangement or other arrangement (a relevant arrangement) to supply petroleum produced from the area of the lease; and
(ii)lodged a written declaration that the petroleum produced from the area of the lease will meet all or some of the petroleum required to be supplied under the relevant arrangement;
(c)the area of the lease is suitable for underground storage of petroleum or a prescribed storage gas and the storage will, or is likely to, start before the later of the following to happen—
(i)the end of 5 years after the lease is to take effect;
(ii)the end of the plan period for the applicant’s proposed development plan for the lease.
(3)The matters mentioned in subsection (1)(e) are the capability criteria.
(4)A person satisfies the capability criteria if the Minister forms the opinion about the person mentioned in subsection (1)(e).

122Exception for particular relevant arrangements

Despite section 120, the application may be refused if the Minister—
(a)is not satisfied of a matter under section 121(2)(a) or (c); and
(b)is satisfied the applicant has entered into a relevant arrangement, but the Minister reasonably believes—
(i)the arrangement is not an arms-length commercial transaction; or
(ii)supply under the arrangement is unlikely to be carried out.

123Provisions of petroleum lease

(1)Each petroleum lease must state its term and area.
(2)The term must—
(a)be for at least the plan period for the initial development plan for the lease; and
(b)end no later than 30 years after the lease takes effect.
(3)The lease may also state—
(a)conditions or other provisions of the lease, other than conditions or provisions that are—
(i)inconsistent with the mandatory conditions for petroleum leases; or
(ii)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease; and
(b)a day for the lease to take effect; and
(c)a day by which petroleum production under the lease is to start.
(3A)The conditions of the lease may include an Australian market supply condition applying to all or part of the area of the lease.
(4)However, the provisions of the lease may exclude or restrict the carrying out of an authorised activity for the lease.
(5)The day of effect must not be before the day the lease is granted.
(6)If no day of effect is decided, the lease takes effect on the day it is granted.
(7)The production commencement day may be more than 2 years after the day of effect only if the Minister is satisfied the holder has entered into a relevant arrangement.
(8)The matters that must be considered in deciding the provisions of the lease include the development plan criteria and capability criteria.
(9)This section applies subject to section 123A.

123AProvisions about grant and conditions of petroleum lease for coordinated project

(1)This section applies if a petroleum lease or proposed petroleum lease is for a coordinated project.
(2)The Minister must not grant the lease until the Minister has been given the Coordinator-General’s report for the project.
(3)Any Coordinator-General’s conditions for the lease must be stated in the lease.
(4)Any other condition of the lease stated under section 123 must not be inconsistent with the Coordinator-General’s conditions.
(5)If a mandatory condition for petroleum leases conflicts with any of the Coordinator-General’s conditions, the Coordinator-General’s condition prevails to the extent of the inconsistency.

124Information notice about refusal

On refusal of the application, the applicant must be given an information notice about the decision to refuse.

Note—

See however section 829 (Restriction on Land Court’s powers for decision not to grant petroleum lease).

125When refusal takes effect

A refusal of the application does not take effect until the end of the appeal period for the decision to refuse.

Division 3 Obtaining petroleum lease by competitive tender

Subdivision 1 Preliminary

126Operation of div 3

(1)This division provides for a process for the granting of petroleum leases by competitive tender.
(2)To remove any doubt, it is declared that a petroleum lease can only be granted under this division, division 2 or division 7, subdivision 2.

Subdivision 2 Calls for tenders

127Call for tenders

(1)The Minister may publish a notice (a call for tenders) inviting tenders for a petroleum lease.
(2)The call must state—
(a)the proposed area of the lease; and
(b)that, under section 169, particular land may be excluded land for the lease; and
(c)the day and time by which tenders in response to it must be made (the closing time for the call); and
(d)that the tenders must be lodged before the closing time for the call; and
(e)that details about each of the following are available at a stated place—
(i)any proposed conditions of the lease, other than mandatory conditions for petroleum leases, that are likely to impact significantly on exploration or production in the proposed area of the lease;
(ii)the required plan period for the initial development plan for the lease;
(iii)any criteria (special criteria), other than the development plan criteria and capability criteria, proposed to be used to decide whether to grant the lease or to decide its provisions;
(iv)whether a process for appointing a preferred tenderer involving a cash bid component is to be used for deciding the call;
(v)if any part of the proposed area of the lease is to be subject to an Australian market supply condition—the part of the proposed area and the condition.
(3)The call may state other relevant matters, including, for example, matters relevant to the development plan, capability or special criteria.
(4)The area of the proposed lease must comply with section 168.
(5)Subsection (2)(e)(i) does not limit the power under section 133 to decide conditions of the lease if it is granted.

128Right to tender

(1)An eligible person may tender for a proposed petroleum lease the subject of a call for tenders.
(2)However, the tender—
(a)must comply with the requirements under section 118 for making an ATP-related application; and
(b)must be lodged; and
(c)can not be made—
(i)after the closing time for the call; or
(ii)for only part of the area of the proposed petroleum lease.
(3)Also, if a process for appointing a preferred tenderer involving a cash bid component is to be used for deciding the call, the tender must be accompanied by the tenderer’s cash bid.

129Right to terminate call for tenders

(1)The Minister may, by gazette notice, terminate a call for tenders at any time before deciding to grant a petroleum lease to a person who has made a tender in response to the call.
(2)All tenders in response to the call lapse when the call is terminated.
(3)No amount, whether by way of compensation, reimbursement or otherwise is payable by the State to any person for or in connection with the termination.
(4)However, subject to sections 131(4) and 845(5), the Minister must refund any tender security given by the tenderer.

Subdivision 3 Deciding tenders

130Process for deciding tenders

(1)Subject to section 134, any process the Minister considers appropriate may be used to decide a call for tenders, including, for example—
(a)a process appointing a preferred tenderer on the tenders made in response to the call (whether or not involving a cash bid component); or
(b)a process involving short-listing a group of possible preferred tenderers and inviting them to engage in another round of tendering before appointing a preferred tenderer from that group.
(2)Without limiting subsection (1), the Minister may give a tenderer a notice requiring the tenderer to give the Minister, within the reasonable period stated in the notice, information the Minister reasonably requires to assess the tender.

131Provisions for preferred tenderers

(1)The Minister may require a preferred tenderer for the call for tenders to—
(a)pay any amounts necessarily incurred, or to be incurred, to enable the petroleum lease to be granted; and

Example—

amounts required to comply with the Commonwealth Native Title Act, part 2, division 3, subdivision P
(b)to do all or any of the following within a stated reasonable period—
(i)pay the annual rent for the first year of the lease;
(ii)give security for the lease, as required under section 488.
(2)If a preferred tenderer does not—
(a)comply with a requirement under subsection (1); or
(b)do all things reasonably necessary to allow a petroleum lease to be granted to the tenderer;

the Minister may revoke the tenderer’s appointment as the preferred tenderer.

(3)However, before acting under subsection (2), the Minister must give the preferred tenderer a reasonable opportunity to provide reasons for, and rectify, the tenderer’s failure to comply with a requirement under subsection (1) or (2)(b).
(4)If the Minister revokes the tenderer’s appointment as the preferred tenderer under this section, the Minister may—
(a)retain the whole or part of any tender security given by the tenderer, if the Minister considers it reasonable in the circumstances; and
(b)appoint another tenderer to be the preferred tenderer.

132Deciding whether to grant petroleum lease

(1)The Minister may, after the closing time for the call for tenders—
(a)grant a petroleum lease to 1 tenderer; or
(b)refuse to grant any petroleum lease.
(2)However—
(a)before deciding to grant the lease, the Minister must decide whether to approve the applicant’s proposed initial development plan for the lease; and
(b)the Minister can not grant the lease unless—
(i)the tenderer is an eligible person; and
(ii)the proposed plan has been approved; and
(iii)the Minister is satisfied the requirements for grant, other than the requirement mentioned in section 121(1)(c), have been complied with; and
(iv)a relevant environmental authority for the lease has been issued.

Note—

If a tender relates to acquired land, see also section 30AC.
(3)This section applies subject to section 123A.

133Provisions of petroleum lease

Sections 123 and 123A apply to a petroleum lease granted under this division as if the tender for the lease was an ATP-related application.

134Criteria for decisions

(1)The matters that must be considered in deciding whether to grant a petroleum lease or its provisions include the development plan criteria, capability criteria and any special criteria.
(2)The Minister may give the weight to each of the development plan, capability and special criteria that the Minister considers appropriate in the circumstances.

135Notice to unsuccessful tenderers

(1)After a call for tenders has been decided, each tenderer not granted the petroleum lease must be given notice of the decision.

Note—

See also the Judicial Review Act 1991, section 32 (Request for statement of reasons).
(2)Subject to sections 131(4) and 845(5), the Minister must refund any tender security given by the tenderer.

Division 4 Development plans

Subdivision 1 Function and purpose of development plan

136Function and purpose

(1)The development plan for a petroleum lease or proposed petroleum lease (the relevant lease) gives detailed information about the nature and extent of activities to be carried out under the relevant lease.
(2)The development plan may—
(a)also relate to another petroleum lease or proposed petroleum lease if the other lease or proposed lease relates to the relevant lease; and
(b)provide that when the plan is approved it will replace any development plan for the other lease.
(3)The purposes of giving the information are to—
(a)allow resource management decisions to be made; and
(b)ensure appropriate development of the lease.

Subdivision 2 Requirements for proposed initial development plans

137Operation of sdiv 2

This subdivision provides for requirements (the initial development plan requirements) for a proposed initial development plan for a proposed petroleum lease.

Note—

For additional requirements for development plans for coal seam gas, see chapter 3, part 6.

138General requirements

(1)The proposed plan must provide for each of the following—
(a)an overview of the activities proposed to be carried out under the lease or proposed lease during all of its term;
(b)for each year of the plan period—
(i)the nature and extent of activities proposed to be carried out under the lease or proposed lease during the year; and
(ii)where the activities are proposed to be carried out; and
(iii)the estimated cost of the activities;
(c)for each natural underground reservoir in the area of the lease of which the applicant is aware, each of the following—
(i)the location and a verifiable estimate of the amount of petroleum in the reservoir;
(ii)the standards and procedures used to make the estimate;
(iii)the rate and amount of production proposed from the reservoir;
(iv)approximately when the proposed production is to start;
(v)a schedule for the proposed production during the plan period;
(d)maps that show the matters mentioned in paragraphs (b)(i) and (ii) and (c)(i);
(e)any other information relevant to the development plan criteria;
(f)reasons why the plan is considered appropriate;
(g)another matter prescribed under a regulation.
(2)A regulation may impose requirements about the form of the development plan.
(3)In this section—
year, of the plan period, means—
(a)the period starting on the day the plan period starts and ending on the first anniversary of that day; and
(b)each subsequent period of 12 months or less during the plan period, starting on each anniversary of that day and ending on—
(i)the next anniversary of that day; or
(ii)if the plan period ends before the next anniversary—the day the plan period ends.

139Plan period

(1)The proposed plan must state its period.
(2)If the proposed plan relates to a tender, the period must be the same as the required period under the relevant call for tenders.
(3)If the proposed plan relates to an ATP-related application, the period must not be longer than—
(a)if the term sought for the lease is less than 5 years from the granting of the lease—the term of the lease; or
(b)if the term sought for the lease is 5 years or more from the start of the term—5 years from the start of the term.

140Storage

If natural underground reservoir storage is proposed, the proposed plan must include the following—
(a)a program for evaluating, developing and using the reservoir;
(b)a verifiable estimate of its storage capacity;
(c)the standards and procedures used to make the estimate;
(d)a schedule for the storage injection and withdrawal;
(e)another matter prescribed under a regulation.

Subdivision 3 Criteria for deciding whether to approve proposed initial development plans

Note—

For the requirement for approval of an initial development plan, see sections 120 and 132.

141Criteria

The matters that must be considered in deciding whether to approve a proposed development plan include each of the following (the development plan criteria)—
(a)the potential of the area of the proposed petroleum lease for petroleum production and related activities;
(b)the nature and extent of the activities;
(c)when and where the activities are proposed to be carried out;
(d)whether petroleum production sought under the lease will be optimised in the best interests of the State, having regard to the public interest.

Subdivision 4 Requirements for proposed later development plans

142Operation of sdiv 4

This subdivision provides for requirements (the later development plan requirements) for a proposed later development plan for a petroleum lease.

Note—

For the requirements to lodge a proposed later development plan, see sections 159 (Obligation to lodge proposed later development plan), 170 (Minister may add excluded land), 372 (Requirements for making application) and 790 (Types of noncompliance action that may be taken).

143General requirements

(1)The proposed plan must—
(a)comply with the initial development plan requirements, as if the reference in section 139(3) to the term sought for the lease were a reference to the remaining term, or the renewed term, of the lease; and
(b)highlight any significant changes from the current development plan for the lease; and
(c)if the current development plan has not been complied with—state the details of, and the reasons for, each noncompliance.
(2)If the effect of the proposed plan is to significantly change an activity provided for under the current development plan for the lease, the proposed plan must also state reasons for the change.
(3)Also, for a significant change that is a cessation or reduction of petroleum production, the proposed plan must include an evaluation of—
(a)petroleum production potential in the area of the lease; and
(b)market opportunities for petroleum production in the area of the lease.

144Later development plans for proposed new leases

Proposed later development plans for an application under division 7, subdivision 2, to divide a petroleum lease must have a combined effect that is at least the effect of the development plan for the original lease.

Subdivision 5 Approval of proposed later development plans

145Application of sdiv 5

This subdivision applies if—
(a)under this Act, a proposed later development plan is lodged for approval; or

Note—

For requirements to lodge a proposed later development plan, see sections 100, 159, 170, 372 and 790, division 6 and division 7, subdivision 2.
(b)the Minister is considering an application under section 235 for approval of a proposed coordination arrangement.

145AModified application of ch 14, pt 1

Chapter 14, part 1 applies in relation to the lodgement by a petroleum lease holder of a proposed later development plan as if—
(a)the lodgement of the proposed plan were the making of an application by the holder; and
(b)the later development plan requirements for the proposed plan were the requirements under chapter 14, part 1 for making the application.

146Petroleum lease taken to have development plan until decision on whether to approve proposed development plan

(1)This section applies until—
(a)if the proposed plan is approved—the holder is given notice of the approval; or
(b)if approval of the proposed plan is refused—when the refusal takes effect.
(2)Despite the ending of the plan period for the current development plan for the petroleum lease—
(a)the lease is taken to have a development plan; and
(b)the holder may carry out any authorised activity for the lease.

147Deciding whether to approve proposed plan

(1)The Minister may approve or refuse to approve the proposed plan.
(2)The matters that must be considered in deciding whether to approve the proposed plan include each of the following—
(a)the development plan criteria;
(b)the extent to which the current development plan for the lease has been complied with;
(c)if the proposed plan provides for a significant change that is a cessation or reduction of petroleum production—
(i)whether the cessation or reduction is reasonable; and
(ii)whether the petroleum lease holder has taken all reasonable steps to prevent the cessation or reduction.
(3)Also, if the lease was granted in response to a tender, any other development plan proposed by other tenderers for the lease must be taken into account.
(4)However, subsection (3) applies only to the extent the other plan includes the period of the proposed plan.

148Power to require relinquishment

(1)This section applies if the proposed plan provides for a significant change that is a cessation or reduction of petroleum production.
(2)The Minister may approve the proposed plan, but—
(a)decide (a deferral decision)—
(i)to defer the taking of effect of the approval until the petroleum lease holder relinquishes, by a lodged notice, a stated part or percentage of the area of the lease on or before a stated day; and
(ii)that the decision to approve the proposed plan is replaced by a decision not to approve it if the notice is not lodged on or before the stated day; or
(b)impose a condition on the lease requiring its holder to relinquish, by a lodged notice, a stated part or percentage of the area of the lease at stated times or intervals.
(3)The public interest must be considered before making a deferral decision or imposing the condition.
(4)A relinquishment under subsection (2)(a)(i) takes effect on the day after the notice is lodged.

149Steps after, and taking effect of, decision

(1)On approval of the proposed later development plan, the holder must be given notice of the approval.
(2)The approval takes effect when the holder is given the notice or, if the notice states a later day of effect, on that later day.
(3)The holder must be given an information notice about—
(a)a decision to refuse to approve the proposed plan; or
(b)a decision, under section 148, to make a deferral decision or impose a condition.
(4)A refusal does not takes effect until the end the appeal period for the decision to refuse.

Division 5 Key mandatory conditions for petroleum leases

Subdivision 1 Preliminary

150Operation of div 5

This division provides for particular mandatory conditions for petroleum leases.

Notes—

1The following provisions also impose mandatory conditions on petroleum leases—
division 1
parts 4 and 10
sections 181 and 202
part 6, division 2, subdivision 2
chapter 3, part 5, division 2
chapter 3A, part 5
chapter 5.
2For what is a mandatory condition, see section 20(2).

Subdivision 2 Key mandatory conditions for particular types of testing

150A PL production testing

(1)Subject to section 151, a petroleum lease holder may carry out testing for petroleum production for a petroleum well (PL production testing) within the area of the lease.
(2)However, it is a condition of the petroleum lease that—
(a)the holder gives the chief executive a notice, containing the information prescribed by regulation, in relation to the PL production testing within 20 business days after the testing starts; and
(b)the testing is carried out after the end date for the testing only with the Minister’s approval.
(3)The Minister may, at any time, approve the carrying out after the end date for PL production testing (the original PL production testing) of further PL production testing and the approval is subject to the conditions the Minister considers appropriate.
(4)If the Minister decides not to approve the carrying out of further PL production testing, the Minister must give the petroleum lease holder an information notice about the decision.

150B Approval of particular ATP production testing taken to be approval for PL production testing

(1)This section applies if—
(a)under section 71A(3), the Minister has approved the carrying out of further ATP production testing by an authority to prospect holder for a petroleum well within an area (the original approval); and
(b)the Minister grants the holder a petroleum lease under section 120 or 340 for the area, or a part of the area containing the petroleum well.
(2)The original approval continues in existence for the further ATP production testing, and is taken to be an approval by the Minister, under section 150A(3) (the transitional approval), of further PL production testing for the petroleum well.
(3)The transitional approval is subject to—
(a)the conditions to which the original approval is subject under section 71A(3); and
(b)any new conditions the Minister considers appropriate.

150C PL storage testing

(1)Subject to section 151, a petroleum lease holder may carry out testing for the storage of petroleum or a prescribed storage gas in a natural underground reservoir (PL storage testing) within the area of the lease.
(2)However, it is a condition of the petroleum lease that—
(a)the holder gives the chief executive a notice, containing the information prescribed by regulation, in relation to the PL storage testing within 20 business days after the testing starts; and
(b)the testing is carried out after the end date for the testing only with the Minister’s approval.
(3)Subject to subsection (4), the Minister may, at any time, approve the carrying out after the end date for PL storage testing (the original PL storage testing) of further PL storage testing and the approval is subject to the conditions the Minister considers appropriate.
(4)An approval may not be given under subsection (3) more than 1 day before the end date for the original PL storage testing.
(5)If the Minister decides not to approve the carrying out of further PL storage testing, the Minister must give the petroleum lease holder an information notice about the decision.
(6)Despite subsections (1) to (3), a petroleum lease holder can not carry out GHG stream storage.

150D Approval of particular ATP storage testing taken to be approval for PL storage testing

(1)This section applies if—
(a)under section 71B(3), the Minister has approved the carrying out of further ATP storage testing by an authority to prospect holder for a natural underground reservoir within an area (the original approval); and
(b)the Minister grants the holder a petroleum lease under section 120 for the area, or a part of the area containing the natural underground reservoir.
(2)The original approval continues in existence for the further ATP storage testing, and is taken to be an approval by the Minister, under section 150C(3) (the transitional approval), of further PL storage testing for the reservoir within the area of the petroleum lease.
(3)The transitional approval is subject to—
(a)the conditions to which the original approval is subject under section 71B(3); and
(b)any new conditions the Minister considers appropriate.

150E Petroleum lease holder must notify chief executive if testing stops

If a petroleum lease holder stops carrying out any PL production testing or PL storage testing within the area of the lease for a continuous period of 14 days or more, the holder must give the chief executive a notice, containing the information prescribed by regulation, in relation to the testing within 20 business days after the testing stops.

Subdivision 3 Other key mandatory conditions

151Restriction on flaring or venting

(1)A petroleum lease holder must not flare or vent petroleum in a gaseous state produced under the lease unless the flaring or venting is authorised under this section.
(2)Flaring the gas is authorised if it is not commercially or technically feasible to use it—
(a)commercially under the lease; or
(b)for an authorised activity for the lease.
(3)Venting the gas is authorised if—
(a)it is not safe to use the gas for a purpose mentioned in subsection (2)(a) or (b) or to flare it; or
(b)flaring it is not technically practicable.
(4)Venting the gas is also authorised if—
(a)it is being used, or is proposed to be used, under a greenhouse abatement scheme; and
(b)if subsection (1) were to apply, the direct or indirect benefit the lease holder would otherwise obtain because of the use of the gas under the scheme would be reduced.
(5)In this section—
greenhouse abatement scheme means—
(a)the Electricity Supply Act 1995 (NSW), part 8A; or

Note—

See, in particular, the Greenhouse Gas Benchmark Rule (Generation) No. 2 of 2003, paragraph 10.1 (Total greenhouse gas emissions), made under the Electricity Supply Act 1995 (NSW), part 8A, section 97K.
(b)the Commonwealth’s Greenhouse Gas Abatement Program; or
(c)another scheme about the abatement of greenhouse gases prescribed under a regulation.

154Obligation to commence production

(1)A petroleum lease holder must start petroleum production under the lease on or before the later of the following—
(a)the end of 2 years after the lease takes effect;
(b)any production commencement day for the lease.
(2)However, subsection (1) does not apply if the development plan for the lease only provides for natural underground reservoir storage.

155Petroleum royalty and annual rent

(1)A petroleum lease holder must pay the State—
(a)petroleum royalty as required under chapter 6; and
(b)the annual rent, as prescribed under a regulation.
(2)The annual rent must be paid in the way, and on or before the day, prescribed under a regulation.

156Civil penalty for nonpayment of annual rent

(1)If a petroleum lease holder does not pay the annual rent as required under section 155, the holder must also pay the State a civil penalty.
(2)The amount of the penalty is 15% of the rent.
(3)The penalty—
(a)must be paid on the day after the last day for payment of the rent; and
(b)is still payable even if the holder later pays the rent.

157Requirement to have development plan

The holder of a petroleum lease must have a development plan for the lease.

Notes—

1The only development plan for a petroleum lease is its current initial or later development plan as approved under division 4.
2For the requirements to lodge a proposed later development plan see sections 159, 170, 372 and 790.
3For approval of proposed later development plans see division 4, subdivision 5.

158Compliance with development plan

(1)A petroleum lease holder must comply with the development plan for the lease.
(2)However, subsection (1) does not apply to a failure to comply with the plan that is an act or omission by the holder to ensure compliance with an insufficiency of supply direction under the Gas Supply Act 2003.

159Obligation to lodge proposed later development plan

(1)This section imposes an obligation on a petroleum lease holder to lodge a proposed later development plan for the lease.

Notes—

1For approval of the proposed plan, see division 4, subdivision 5.
2If the holder wishes to renew the lease, a proposed later development plan must be included in the renewal application. See section 162(1).
(2)The obligation is complied with only if the proposed later development plan—
(a)is lodged; and
(b)complies with the later development plan requirements; and
(c)is accompanied by the relevant fee.
(3)A proposed later development plan must be lodged—
(a)at least 40, but no more than 100, business days before the end of the plan period for its current development plan (the current plan period); or
(b)as soon as practicable after the holder proposes or becomes aware of a significant change to the nature and extent of an authorised activity that is not already dealt with under the current development plan for the lease.
(4)However, if before the end of the current plan period, a decision is made not to approve a proposed later development plan lodged under subsection (3), the holder may, within the eligible balance of the period, lodge another proposed later development plan.
(5)If the holder does not lodge any proposed later development plan before the end of the current plan period or if subsection (4) applies and the holder does not lodge another proposed later development plan within the eligible balance of the current plan period—
(a)the holder must be given a notice requiring the holder to lodge a proposed later development plan for the lease within 40 business days after the giving of the notice; and
(b)the holder must comply with the requirement.
(6)In this section—
eligible balance, for a current plan period during which a decision mentioned in subsection (4) is made, means the balance of the period, other than the appeal period for the decision.
relevant fee, for the lodgement of the proposed plan, means—
(a)if the proposed plan is lodged within the time required under subsection (3)—the fee prescribed under a regulation; or
(b)if the proposed plan is lodged after the time required under subsection (3) and—
(i)if it is lodged under subsection (4)—nil; or
(ii)if it is not lodged under subsection (4)—an amount that is 10 times the prescribed fee.

160Consequence of failure to comply with notice to lodge proposed later development plan

(1)If a petroleum lease holder does not comply with a requirement under section 159(5)(a), the lease is cancelled.
(2)However, the cancellation does not take effect until the holder is given a notice stating that the lease has been cancelled because of the operation of subsection (1).

Division 6 Renewals

161Conditions for renewal application

(1)A petroleum lease holder may apply to renew the lease only if none of the following is outstanding—
(a)annual rent for the lease;
(b)a civil penalty under section 156 for nonpayment of annual rent;
(c)interest payable under section 588 on annual rent or a civil penalty;
(d)a royalty-related amount payable by the holder;
(e)security for the lease, as required under section 488.
(2)Also, the application can not be made—
(a)more than 80 business days before the end of the term of the lease; or
(b)after the lease has ended.
(3)However, the Minister may allow the application to be made up to 2 years before the end of the term of the lease if the Minister is of the opinion that—
(a)a storage agreement is in force for the lease or the holder has negotiated, or is negotiating, a proposed storage agreement for the lease; and
(b)the agreement or proposed agreement will be in force after the proposed renewed lease takes effect.

162Requirements for making renewal application

(1)The application must—
(a)be in the approved form; and
(b)state whether or not the development plan for the petroleum lease has been complied with; and
(c)if the development plan has not been complied with—state details of, and the reasons for, each noncompliance; and
(d)include a proposed later development plan for the renewed lease; and
(e)state whether or not the applicant has complied with chapter 5, part 7, for reports required to be lodged in relation to the lease; and
(f)be accompanied by—
(i)the application fee prescribed under a regulation; and
(ii)if the application is made less than 40 business days before the end of the term of the lease—an amount that is 10 times the application fee.
(2)The proposed later development plan must comply with the later development plan requirements.

163Continuing effect of lease for renewal application

(1)This section applies if the term of the petroleum lease ends before the application is decided.
(2)Despite the ending of the term, the lease continues in force until the earlier of the following to happen—
(a)the start of any renewed term of the lease;
(b)a refusal of the application takes effect;
(c)the application is withdrawn;
(d)the lease is cancelled under this Act.
(3)If the lease is renewed, subsection (2) is taken never to have applied for the period from the end of the term of the lease being renewed, as stated in that lease.

164Deciding application

(1)The Minister may grant or refuse the renewal.
(2)However—
(a)before deciding to grant the renewal, the Minister must decide whether to approve the applicant’s proposed later development plan for the renewed petroleum lease; and
(b)the renewal can not be granted unless—
(i)the proposed plan has been approved; and
(ii)the Minister considers the applicant satisfies the capability criteria and has substantially complied with the lease being renewed; and
(iii)a relevant environmental authority for the renewed lease has been issued.

Note—

If the application relates to acquired land, see also section 30AC.
(3)Also, the Minister may, as a condition of deciding to grant the application, require the applicant to do all or any of the following within a stated reasonable period—
(a)pay the annual rent for the first year of the renewed lease;
(b)give, under section 488, security for the renewed lease.
(4)If the applicant does not comply with the requirement, the application may be refused.

165Provisions and term of renewed lease

(1)Subject to this section, section 123 applies to the renewed petroleum lease as if it were a petroleum lease granted under division 2.
(2)The conditions or other provisions of the renewed lease may be different from the conditions or other provisions of the petroleum lease being renewed.
(3)The area of the renewed lease must not be more than the area of the petroleum lease being renewed immediately before the renewed lease is to take effect.

Note—

See, however, section 30AC(3) in relation to acquired land that was previously in the area of the petroleum lease being renewed.
(4)If the renewal is decided before the end of the term of the petroleum lease being renewed as stated in that lease (the previous term), the term of the renewed lease is taken to start from the end of the previous term.
(5)If the renewed lease is decided after the previous term, the term of the renewed lease starts immediately after the end of the previous term, but—
(a)the conditions of the renewed lease do not start until the lease holder is given notice of them; and
(b)until the notice is given, the conditions of the petroleum lease being renewed apply to the renewed lease as if they were its conditions.
(6)The term of the renewed lease must not be more than—
(a)if it has not been previously renewed—the original term of the lease; or
(b)if it has been previously renewed—its last renewed term.

166Information notice about refusal

On refusal of the application, the applicant must be given an information notice about the decision to refuse.

167When refusal takes effect

A refusal of the application does not take effect until the end of the appeal period for the decision to refuse.

Division 7 Miscellaneous provisions

Subdivision 1 Area of petroleum lease

168Area of petroleum lease

(1)This section provides for the area of a petroleum lease.
(2)The area does not include excluded land for the lease.

Note—

See also section 30AB(3) if land in the petroleum lease’s area is taken under a resumption law.
(3)Unless the Minister otherwise decides, the area must form a single parcel of land.
(4)The area must not include any of the following (unavailable land)—
(a)land in the area of another petroleum tenure, other than land that will, under section 101, cease to be included in the area of an authority to prospect on the grant of the lease;
(b)excluded land for another petroleum tenure;
(c)land in the area of a 1923 Act petroleum tenure;
(d)excluded land for a 1923 Act petroleum tenure;
(e)land that a regulation prescribes as land over which a petroleum lease can not be granted.
(5)To remove any doubt, it is declared that if land within any sub-block that the lease states is included in the area of the lease ceases to be unavailable land, the cessation itself does not cause the land to be within the area of the lease.
(6)For subsection (5), if the lease states that its area includes land within a block without including or excluding any particular sub-block, the reference to the block is a reference to all sub-blocks within the block.
(7)The area may include a part of a sub-block only if the part is all areas within the sub-block that are left after taking away all unavailable land within the sub-block (a residual sub-block).

Note—

See also section 30AB(3) if land in the petroleum lease’s area is taken under a resumption law.
(8)The area must be no more than 75 sub-blocks or residual sub-blocks, in any combination.

169Minister’s power to decide excluded land

(1)The Minister may decide excluded land for a petroleum lease or proposed petroleum lease.
(2)However, the power under subsection (1) may be exercised only when the Minister is deciding whether to—
(a)grant or renew the lease; or
(b)approve any later development plan for the lease.
(3)However, excluded land—
(a)must be within any sub-block that the lease states is included in the area of the lease; and
(b)can not be a whole sub-block.
(4)For subsection (3)(a), if the register—
(a)states that the lease’s area includes land within a block; but
(b)does not include or exclude any particular sub-block within that block;

the reference to the block in the register is a reference to all sub-blocks within the block, other than any sub-block that is completely within the area of another petroleum tenure or a 1923 Act petroleum tenure.

(5)Excluded land may be described in a way the Minister considers appropriate, including, for example, by area or by reference to a stated type of land.
(6)Land ceases to be excluded land for a petroleum lease if, for any reason, the sub-block in which the land is located ceases to be in the area of the lease.

170Minister may add excluded land

(1)The Minister may amend a petroleum lease by adding excluded land for the lease to its area only if—
(a)the lease as amended complies with section 168; and
(b)the lease holder consents.
(2)If land mentioned in subsection (1) is added to the area of the lease, the land ceases to be excluded land for the lease.
(3)The Minister may amend the provisions of the lease in a way that reflects the inclusion of the excluded land.
(4)Also, the Minister may give the lease holder a notice—
(a)withdrawing, from a stated day, the approval of the development plan for the lease; and
(b)directing the holder to lodge a proposed later development plan for the lease that—
(i)complies with the later development plan requirements; and
(ii)changes the development plan for the lease to reflect the inclusion of the excluded land.
(5)The amended provisions of the lease or the proposed later development plan must not be—
(a)inconsistent with the mandatory conditions for petroleum leases; or
(b)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease.

Subdivision 1A Amalgamating particular petroleum leases

170A Application of subdivision

This subdivision applies in relation to petroleum leases other than 1923 Act leases.

170B Applying to amalgamate

(1)A person may apply to the Minister to amalgamate 2 or more petroleum leases (each an individual lease) into a single petroleum lease (the amalgamated lease).
(2)An application can be made only if—
(a)all of the holders of the individual leases agree to the proposed amalgamation; and
(b)the holders of the amalgamated lease will be the same as the holders of the individual leases.
(3)Also, a person can not make an application under subsection (1) if—
(a)any of the holders of the individual leases have not complied with a provision of this Act; or
(b)any of the following amounts is outstanding in relation to an individual lease—
(i)annual rent;
(ii)a civil penalty under section 156 for non-payment of annual rent;
(iii)interest payable under section 588 on annual rent or a civil penalty;
(iv)a royalty-related amount payable by the holder;
(v)security required under section 488.

170C Requirements for making application

The application must—
(a)be in the approved form; and
(b)include a proposed development plan for the amalgamated lease that, to the extent possible, is the same as the development plans for the individual leases; and
(c)be accompanied by the fee prescribed by regulation.

170D Deciding application

(1)The Minister may decide to grant or refuse to grant the amalgamated lease.
(2)However—
(a)before deciding to grant the amalgamated lease, the Minister must decide whether to approve the proposed development plan for the amalgamated lease; and
(b)the amalgamated lease can not be granted unless—
(i)the proposed development plan for the amalgamated lease has been approved; and
(ii)the Minister is satisfied each proposed holder of the amalgamated lease—
(A)satisfies the capability criteria; and
(B)continues to satisfy any special criteria that applied for deciding the application for each of the individual leases; and
(C)has substantially complied with the conditions of the individual leases.
(3)The matters that may be considered in granting the amalgamated lease include the development plans for the individual leases, the proposed development plan for the amalgamated lease and the capability criteria.
(4)The Minister may, as a condition of granting the amalgamated lease, require the applicant to give security or additional security for the amalgamated lease, under section 488, within a stated reasonable period.
(5)If the applicant does not comply with a requirement under subsection (4), the application may be refused.

170E Provisions of amalgamated lease

(1)Subject to this section, section 123 applies for the provisions of an amalgamated lease as if it were a petroleum lease granted under division 2.
(2)However, the production commencement day for the amalgamated lease must not be later than the earliest production commencement day of the individual leases.

170F Steps after deciding application

(1)If the Minister decides to grant the amalgamated lease, the Minister must give the applicant and any other holder of the amalgamated lease notice of—
(a)the provisions under section 123 of the lease; and
(b)the development plan approved for the lease.
(2)If the Minister decides to refuse to grant the amalgamated lease, the Minister must give the applicant an information notice for the decision.

Subdivision 2 Dividing petroleum leases

171Applying to divide

(1)The holder of a petroleum lease (the original lease) may apply to divide it into 2 or more petroleum leases (the new leases).
(2)However, the holder may apply for a new lease to be granted to another person only if the other person—
(a)agrees to the proposed grant; and
(b)is an eligible person.
(3)Despite subsections (1) and (2), the holder can not make the application if any of the following is outstanding—
(a)annual rent for the original lease;
(b)a civil penalty under section 156 for nonpayment of annual rent;
(c)interest payable under section 588 on annual rent or a civil penalty;
(d)a royalty-related amount payable by the holder;
(e)security for the original lease, as required under section 488.

172Requirements for making application

The application must—
(a)be in the approved form; and
(b)state whether or not the development plan for the original lease has been complied with; and
(c)if the development plan for the original lease has not been complied with—state details of, and the reasons for, each noncompliance; and
(d)include a proposed later development plan for each proposed new lease; and

Note—

For an additional requirement for the proposed development plans, see section 144.
(e)address the capability criteria for each proposed holder of the new leases; and
(f)state whether or not the holder has complied with chapter 5, part 7, for reports required to be lodged in relation to the original lease; and
(g)be accompanied by the fee prescribed under a regulation.

173Deciding application

(1)The Minister may make or refuse to make the division.
(2)However—
(a)before deciding to make the division, the Minister must decide whether to approve the proposed later development plans for the new leases; and
(b)the division can not be made unless—
(i)the proposed plans have been approved; and
(ii)the applicant has established 1 of the matters mentioned in section 121(2) for each proposed lease; and
(iii)each proposed holder of the new leases satisfies the capability criteria; and
(iv)the Minister is satisfied the applicant continues to satisfy any special criteria that applied for deciding the application for the original lease; and

Note—

See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).h)(iii) and 43.
(v)the Minister is satisfied the applicant has substantially complied with the original lease.
(3)The matters that may be considered in making the division include the development plan for the original lease, the proposed later development plans and the capability criteria.
(4)The Minister may, as a condition of making the division, require the applicant to, under section 488, give security or additional security for all or any of the new leases within a stated reasonable period.
(5)If the applicant does not comply with the requirement, the division may be refused.

174Provisions of new leases

(1)Subject to this section, section 123 applies for the provisions of a new lease as if it were a petroleum lease granted under division 2.
(2)However, the term of each new lease must not end later than the end of the term of the original lease.
(3)For any relinquishment condition for the new leases—
(a)the new leases are taken to have originally taken effect when the original lease originally took effect; and
(b)land within any sub-block that the original lease states is included in the area of the original lease is divided rateably between the new leases; and
(c)for working out previous relinquishments that are counted for the relinquishment condition for each new lease, the relinquishments previously counted for the relinquishment condition for the original lease are divided rateably between the new leases.

175Steps after deciding application

(1)After the provisions of the new leases are decided, the applicant and anyone else who will be a holder of any new lease, must be given notice of the relevant provisions and development plans.

Note—

For noncompliance action started, or that could have been taken, against the original lease holder, see section 792.
(2)On refusal to make the division, the applicant must be given notice of the refusal.

Subdivision 3 Changing production commencement day

175AA When holder may apply to change production commencement day

The holder of a petroleum lease may apply to change the production commencement day for the lease to a new day only if—
(a)the holder has a relevant arrangement in place to supply petroleum produced from the area of the lease; and
(b)the application is made no later than 1 year, or a shorter period prescribed by regulation, before the day by which petroleum production under the lease is to start.

175AB Requirements for making application

(1)An application to change a production commencement day to a new day must—
(a)be made to the Minister in the approved form; and
(b)state—
(i)the proposed new day; and
(ii)the grounds for seeking the change; and
(c)be supported by information, documents or instruments detailing—
(i)the petroleum production required under all relevant arrangements relating to the lease; and
(ii)the reserves, resources and characteristics of natural underground reservoirs of all petroleum authorities required to supply petroleum under the relevant arrangements; and
(d)be accompanied by the fee prescribed under a regulation.
(2)The holder must also give the Minister information, documents or instruments detailing all relevant arrangements relating to the lease unless the holder—
(a)has already given the Minister the information, documents or instruments in complying with section 121(1)(g); and
(b)lodges a written declaration that there has been no change in the relevant arrangements.
(3)If the holder has already given the Minister the information, documents or instruments in complying with section 121(1)(g) but a relevant arrangement has been changed, the holder must give the Minister the details of the changed arrangement that the Minister reasonably requires to decide whether the lease is an arms-length commercial transaction.

175AC Deciding application

(1)After receiving an application to change a production commencement day to a new day, the Minister must decide whether or not to make the change.
(2)The Minister may, if the holder of the lease agrees in writing, change the production commencement day for the lease to another day.
(3)In deciding the application, the Minister must consider—
(a)whether the holder has substantially complied with the lease; and
(b)whether petroleum production under the lease will be optimised in the best interests of the State; and
(c)the public interest.
(4)The Minister may refuse the application if the Minister reasonably believes—
(a)a relevant arrangement relating to the lease is not an arms-length commercial transaction; or
(b)supply under the arrangement is unlikely to be carried out.
(5)If the Minister decides to change the production commencement day to a new day, the Minister must amend the lease to give effect to the change.

Note—

A change in the production commencement day may require a later development plan for the lease to be lodged—see section 159.
(6)The Minister may not decide to change the production commencement day to a day that is earlier than the day the decision is made.
(7)The holder of the petroleum lease is taken not to be in breach of the holder’s obligation under section 154(1) before the first of the following happens—
(a)the Minister decides whether to change the production commencement day to a new day, and the decision is not appealed or, if there is an appeal, the appeal is finalised;
(b)the Minister changes the production commencement day with the agreement of the lessee under subsection (2).

175AD Information notice about decision

If the Minister decides not to change the production commencement day for a lease to a new day, the Minister must give the applicant an information notice about the decision.

Part 2A Prospective Gas Production Land Reserve

175AMeaning of Australian market supply condition

An Australian market supply condition, for land, is a condition under which—
(a)gas produced from the land must not be supplied other than to the Australian market; and
(b)any contract or other arrangement for the supply of the gas must include a condition that the gas must not be further supplied other than to the Australian market.

175BMeaning of Australian market

Australian market, in relation to the supply of gas, means an entity or entities that will—
(a)consume the gas within Australia; or
(b)supply the gas to an entity or entities that will consume the gas within Australia.

175CSupply of gas from PGPLR land

(1)The holder of a petroleum tenure for PGPLR land—
(a)must not supply gas produced from the land other than to the Australian market; and
(b)must include in any contract or other arrangement for the supply of the gas a condition that the gas must not be further supplied other than to the Australian market.

Maximum penalty—1,000 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(2)However, if the application of the Australian market supply condition to the land has been suspended under section 175G(1) for a stated period, subsection (1) does not apply to the holder for the stated period.
(3)An entity to which gas produced from PGPLR land is supplied—
(a)must not further supply the gas other than to the Australian market; and
(b)must include in any contract or other arrangement for the supply of the gas a condition that the gas must not be further supplied other than to the Australian market.

Maximum penalty—1,000 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(4)However, if the entity holds an exemption under section 175G(2) for a stated period in relation to the land, subsection (3) does not apply to the entity, for the stated period, in relation to gas produced from the land.
(5)Subsection (3)(a) applies subject to section 175D.

175DUrgent exemption from application of s 175C(3)(a)

(1)Subsection (2) applies if—
(a)an entity is a consumer of gas; and
(b)because of technical or operational problems, the entity is unable to consume gas produced from PGPLR land and supplied to the entity; and
(c)the entity has taken all reasonable steps to supply the gas to the Australian market but the entity considers it is not commercially viable to do so; and
(d)the entity supplies the gas other than to the Australian market; and
(e)the entity gives notice of the supply of the gas, the reason for the supply and the date the technical or operational problem arose, to the chief executive within 5 days after starting to supply the gas.

Example of a technical or operational problem for paragraph (b)—

the failure of the entity’s plant or machinery
(2)Section 175C(3)(a) does not apply to the entity for 30 days after the technical or operational problem arises.

175ESuspension of application of, or exemption from, Australian market supply condition

(1)The holder of a petroleum tenure for PGPLR land may apply to the Minister for a suspension, for a stated period, of the application of the Australian market supply condition to the land if—
(a)market analysis indicates that, during the stated period, sufficient gas may be produced from existing and proposed petroleum tenures in the State to supply both the Australian market and export demand; or
(b)the holder has taken all reasonable steps to supply the gas produced from the PGPLR land to the Australian market but it is not commercially viable to do so.
(2)An entity to which gas produced from PGPLR land is supplied may apply to the chief executive for an exemption, for a stated period, from section 175C(3) in relation to the land if—
(a)market analysis indicates that, during the stated period, sufficient gas may be produced from existing and proposed petroleum tenures in the State to supply both the Australian market and export demand; or
(b)the entity has taken all reasonable steps to supply the gas produced from the PGPLR land to the Australian market but it is not commercially viable to do so.

175FAssessing commercial viability

In assessing commercial viability of the supply of gas produced from PGPLR land for section 175E, the Minister or the chief executive may have regard to the following—
(a)whether the rate of return on the investment of money required to produce gas from the land and supply it to the Australian market at least meets the rate of return considered acceptable by a reasonable petroleum producer or a lender to a petroleum producer;
(b)the market conditions at the time the application is made under section 175E, including, for example, access to markets, the expected duration of a contract or other arrangement for the supply of the gas, the price likely to be paid for the gas and the certainty and timing of market opportunities;
(c)whether, if commercial viability is dependent on the applicant reaching agreement with another entity or using the other entity’s facilities or technology, the applicant can complete the agreement or use the facilities or technology on terms the applicant considers provide a reasonable rate of return for the applicant.

175GDeciding application

(1)The Minister may grant an application mentioned in section 175E(1) only if the Minister is satisfied about a matter mentioned in section 175E(1)(a) or (b).
(2)The chief executive may grant an application mentioned in section 175E(2) only if the chief executive is satisfied about a matter mentioned in section 175E(2)(a) or (b).
(3)If the Minister or chief executive refuses to grant an application, the applicant must be given an information notice for the decision.

175HRequirement to keep and give records

(1)This section applies to the following (each a selling entity)—
(a)the holder of a petroleum lease for PGPLR land who supplies gas produced from the land;
(b)another entity that supplies gas produced from PGPLR land.
(2)A selling entity must, for the period and in the way prescribed under a regulation, keep the records prescribed under a regulation for each supply by the selling entity of gas produced from PGPLR land.

Maximum penalty—500 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(3)If the chief executive gives a selling entity a notice asking for a copy of a record kept under subsection (2), the selling entity must give a copy of the record to the chief executive within the reasonable period stated in the notice.

Maximum penalty—500 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.

175IOrder to enforce compliance with s 175C

(1)This section applies if, on the application of the chief executive, the District Court is satisfied—
(a)the holder of a petroleum tenure for PGPLR land is supplying gas produced from the land other than to the Australian market, contrary to section 175C(1)(a); or
(b)an entity to which gas produced from PGPLR land was supplied is further supplying the gas other than to the Australian market, contrary to section 175C(3)(a).
(2)The court may make either or both of the following orders—
(a)an order granting an injunction, on terms the court considers appropriate, restraining the holder or other entity from supplying the gas other than to the Australian market;
(b)another order the court considers appropriate.
(3)The court may decide not to make an order under this section in relation to the holder if the court considers that section 790(1)(b) or (c) provides a more appropriate way of dealing with the issue.

Part 3 Data acquisition authorities

Division 1 Obtaining data acquisition authority

176Who may apply for data acquisition authority

(1)A petroleum tenure holder may apply for a data acquisition authority to allow the applicant to carry out the following activities (data acquisition activities)—
(a)geophysical surveys on land (the data acquisition land) contiguous to land in the area of the tenure to enable the applicant to acquire data relevant to authorised activities under the tenure;
(b)the entering of the data acquisition land to carry out the geophysical surveys.
(2)However, the application can not be made or granted for land in the area of another petroleum tenure.

177Requirements for making application

The application must be—
(a)in the approved form; and
(b)accompanied by the fee prescribed under a regulation.

178Deciding application for data acquisition authority

(1)The Minister may grant or refuse the data acquisition authority.
(2)However, the data acquisition authority can not be granted unless a relevant environmental authority for the data acquisition authority has been issued.

Note—

If the application relates to acquired land, see also section 30AC.
(3)The authority must state its term and the area subject to the authority.
(4)The term must end no later than 2 years after the authority takes effect.
(5)The authority may also state—
(a)conditions or other provisions of the authority, other than conditions or provisions that are—
(i)inconsistent with section 180, 181 or 184A or any other mandatory condition for data acquisition authorities; or

Note—

Chapter 5 also imposes mandatory conditions on data acquisition authorities. In particular, see chapter 5, part 8.
(ii)inconsistent with a condition of the petroleum tenure to which the authority relates; or
(iii)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the authority; and
(b)the day it takes effect.
(6)However, the provisions of the authority may exclude or restrict the carrying out of data acquisition activities.
(7)The Minister may, as a condition of deciding to grant the authority, require the applicant to do all or any of the following within a stated reasonable period—
(a)pay the annual rent for the authority;
(b)give, under section 488, security for the authority.
(8)If the applicant does not comply with the requirement, the application may be refused.

179Notice of refusal

On refusal of the application, the applicant must be given notice of the decision to refuse.

Note—

See also the Judicial Review Act 1991, section 32 (Request for statement of reasons).

Division 2 Provisions for data acquisition authorities

Note—

See also chapter 5 (Common petroleum authority provisions).

180Key authorised activities

(1)A data acquisition authority authorises its holder to carry out data acquisition activities in the area of the authority.
(2)The authorised activities may be carried out despite the rights of an owner or occupier of land on which they are exercised.
(3)However, the carrying out of the data acquisition activities is subject to—
(a)section 6; and
(b)chapter 3, part 4, division 2; and
(c)chapter 3A, part 5; and
(d)chapter 5; and
(e)the mandatory and other conditions of the authority; and
(f)any exclusion or restriction provided for in the authority on the carrying out of the activities.

Note—

Also, the carrying out of particular activities on particular land in a data acquisition authority’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.

181Additional condition of relevant petroleum tenure

If a condition is imposed on a data acquisition authority (the authority condition), it is a condition of the petroleum tenure to which the authority relates that the tenure holder must comply with the authority condition.

Note—

Chapter 5 also imposes mandatory conditions on data acquisition authorities. In particular, see chapter 2, part 4, chapter 5, part 8 and the Common Provisions Act, chapter 3, part 2.

182Authority holder is the relevant petroleum tenure holder from time to time

The holder of a data acquisition authority is taken to be the person who, from time to time, holds the petroleum tenure to which the authority relates.

183Authority ends if relevant petroleum tenure ends

A data acquisition authority ends if the petroleum tenure to which it relates ends.

184Relationship with subsequent petroleum tenure

(1)This section applies if a petroleum tenure is granted over land in the area of a data acquisition authority.
(2)The grant does not limit the authority or its term.
(3)However, an authorised activity for the authority may be carried out on the land only if—
(a)carrying out the activity does not adversely affect the carrying out of an authorised activity for the tenure; or
(b)the agreement conditions have been complied with.
(4)In this section—
agreement conditions means that—
(a)the tenure holder has agreed in writing to the carrying out of the activity; and
(b)a copy of the agreement has been lodged; and
(c)the agreement is still in force.

184AAnnual rent

(1)A data acquisition authority holder must pay the State the rent, as prescribed under a regulation.

Note—

See also section 588 (Interest on amounts owing to the State other than for petroleum royalty).
(2)The rent must be paid in the way, and on or before the day, prescribed under a regulation.

Part 4 Water rights for petroleum tenures

185Underground water rights—general

(1)The holder of a petroleum tenure may take or interfere with underground water in the area of the tenure if the taking or interference happens during the course of, or results from, the carrying out of another authorised activity for the tenure.

Examples—

underground water necessarily or unavoidably taken during the drilling of a petroleum well or water observation bore
underground water necessarily or unavoidably taken during testing for petroleum production or petroleum production authorised under section 32 or 109
(2)The rights under subsection (1)—
(a)are the underground water rights for the petroleum tenure; and
(b)are subject to the tenure holder complying with the holder’s underground water obligations.
(3)There is no limit to the volume of water that may be taken under the underground water rights.
(4)Underground water taken or interfered with, under subsection (1), from a petroleum well is associated water.
(5)The tenure holder may use associated water for any purpose and within or outside the area of the tenure.
(6)In this section—
another authorised activity, for the petroleum tenure, means an authorised activity for the tenure under part 1, division 1 or part 2, division 1.

186Underground water rights—limited additional rights

(1)This section applies to the holder of a petroleum tenure until—
(a)if the area of the tenure is in the area declared by gazette notice under the Water Act on 18 March 2011 to be a cumulative management area and referred to as the Surat Cumulative Management Area—the day 5 years after the commencement of this section; or
(b)if paragraph (a) does not apply—the day 2 years after the commencement of this section; or
(c)a water licence or water permit is granted to take or interfere with underground water under the Water Act, section 1277.
(2)The holder of a petroleum tenure may take or interfere with underground water in the area of the tenure for use in the carrying out of another authorised activity for the tenure.

Note—

After the relevant period provided for under subsection (1) ends, the holder must be authorised under the Water Act to take or interfere with the water.
(3)The rights under subsection (2) are—
(a)also underground water rights for the petroleum tenure; and
(b)subject to the tenure holder complying with the holder’s underground water obligations.
(4)The holder must, in accordance with the requirements prescribed by regulation, measure and report the volume of water taken under subsection (2) to the chief executive.

Maximum penalty—500 penalty units.

(5)In this section—
another authorised activity, for the petroleum tenure, means an authorised activity for the tenure under part 1, division 1 or part 2, division 1.
cumulative management area see the Water Act, schedule 4.

187Water monitoring activities

(1)A petroleum tenure holder may carry out any of the following activities in the area of the holder’s tenure to comply with its underground water obligations for the tenure—
(a)gathering information about, or undertaking an assessment of, a water bore;
(b)monitoring effects of the exercise of underground water rights for the tenure;
(c)constructing or plugging and abandoning a water observation bore;
(d)gathering information for preparing an underground water impact report or final report under the Water Act, chapter 3;
(e)carrying out any other activity necessary to comply with an underground water obligation of the holder.
(2)An activity mentioned in subsection (1) is a water monitoring activity.
(3)In this section—
water bore see the Water Act, schedule 4.

188Authorisation for Water Act

For the Water Act, the taking or interference with or the use of underground water, under the underground water rights, is taken to be authorised.

Note—

See the Water Act, section 808 (Unauthorised taking, supplying or interfering with water).

189Water Act not otherwise affected

(1)To remove any doubt, it is declared that a petroleum tenure holder can not take or interfere with or use water unless the taking or interference or use is authorised under this part or the Water Act.

Note—

See the Water Act, chapter 2, part 2, division 1A and section 808.
(2)In this section—
water see the Water Act, schedule 4.

Part 5 Water monitoring authorities

Division 1 Obtaining water monitoring authority

190Who may apply for water monitoring authority

(1)A petroleum tenure holder may apply for a water monitoring authority for stated land outside the area of the tenure to allow the holder to comply with the holder’s underground water obligations for the tenure.
(2)The application may be made or granted—
(a)over land in the area of another petroleum authority; and
(b)for 1 or more petroleum tenures held by the same applicant.

191Requirements for making application

The application must be—
(a)in the approved form; and
(b)accompanied by the fee prescribed under a regulation.

192Deciding application for water monitoring authority

(1)The Minister may grant or refuse the water monitoring authority.
(2)However, the water monitoring authority must not be granted unless a relevant environmental authority for the water monitoring authority has been issued.

Note—

If the application relates to acquired land, see also section 30AC.
(3)The Minister may, before deciding the application, seek advice about the application from the chief executive of the department administering the Water Act.
(4)The authority must state its area and each petroleum tenure to which it relates.
(5)The authority may also state—
(a)conditions or other provisions of the authority, other than conditions or provisions that are—
(i)inconsistent with division 2 or section 202 or 202A or any other mandatory condition for water monitoring authorities; or

Note—

Chapter 5 also imposes mandatory conditions on water monitoring authorities. In particular, see chapter 5, part 8.
(ii)inconsistent with a condition of any petroleum tenure to which the authority relates; or
(iii)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the authority; and
(b)the day it takes effect.
(6)However, the provisions of the authority may exclude or restrict the carrying out of water monitoring activities, if the exclusion or restriction does not prevent the holder from complying with the holder’s underground water obligations.
(7)The Minister may, as a condition of deciding to grant the authority, require the applicant to do all or any of the following within a stated reasonable period—
(a)pay the annual rent for the first year of the authority;
(b)give, under section 488, security for the authority.
(8)If the applicant does not comply with the requirement, the application may be refused.

Division 2 Key authorised activities

193Operation of div 2

(1)This division provides for the key authorised activities for a water monitoring authority.

Notes—

1For other authorised activities, see chapter 2, part 4, chapter 5, part 8 and the Common Provisions Act, chapter 3, part 2.
2The carrying out of particular activities on particular land in a water monitoring authority’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.
(2)The authorised activities may be carried out despite the rights of an owner or occupier of land on which they are exercised.
(3)However, the carrying out of the authorised activities is subject to—
(a)sections 6, 197 and 198; and
(b)chapter 3, part 4, division 2; and
(c)chapter 3A, part 5; and
(d)chapter 5; and
(e)the mandatory and other conditions of the authority; and
(f)any exclusion or restriction provided for in the authority on the carrying out of the activities.

194Water monitoring activities

The authority holder may carry out any water monitoring activity in the area of the authority.

195Limited right to take or interfere with underground water

The authority holder may take or interfere with underground water only to the extent that the taking or interference is the unavoidable result of carrying out a water monitoring activity in the area of the authority.

Example—

the taking of or interference with underground water during the drilling or maintenance of a water observation bore in the area

196Authorisation for Water Act

For the Water Act, the taking of or interference with underground water, under section 195, is taken to be authorised.

Note—

See the Water Act, section 808 (Unauthorised taking, supplying or interfering with water).

197Water Act not otherwise affected

To remove any doubt, it is declared that the water monitoring authority holder can not take or interfere with water as defined under the Water Act unless the taking or interference is authorised under this division or the Water Act.

Note—

See the Water Act, chapter 2, part 2, division 1A and section 808.

198Restriction on carrying out authorised activities

In carrying out an authorised activity for the water monitoring authority, the holder must not interfere with the carrying out of an authorised activity for a petroleum tenure, or of another water monitoring authority, the area of which includes the area of the authority.

Maximum penalty—1,000 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.

199No right to petroleum discovered

To remove any doubt, it is declared that the discovery of petroleum while carrying out an authorised activity for the authority does not, of itself, give the authority holder a right to the petroleum.

Division 3 Miscellaneous provisions

200Term of authority

Subject to chapter 10, part 2, division 4, a water monitoring authority continues in force until there is no longer any petroleum tenure to which the authority relates.

201Provision for who is the authority holder

(1)If there is only 1 petroleum tenure to which a water monitoring authority relates, the authority holder is taken to be the person who, from time to time, holds the petroleum tenure to which the authority relates.
(2)Subsections (3) and (4) apply if there is more than 1 petroleum tenure to which a water monitoring authority relates.
(3)If, as a result of dealings with the tenures, all of the tenures are transferred to the same person, the transferee is taken to be the holder of the authority.
(4)If, as a result of dealings with the tenures, 1 or more but not all of the tenures are transferred to the same person, the person from whom the tenures were transferred continues to be the holder of the water monitoring authority.

202Additional condition of relevant petroleum tenure

If a condition is imposed on a water monitoring authority (the authority condition), it is a condition of each petroleum tenure to which the authority relates that the tenure holder must comply with the authority condition.

202AAnnual rent

(1)A water monitoring authority holder must pay the State the annual rent, as prescribed under a regulation.
(2)The annual rent must be paid in the way, and on or before the day, prescribed under a regulation.

203Amending water monitoring authority by application

(1)The holder of a water monitoring authority may apply for the amendment of it—
(a)to increase or decrease its area; or
(b)to add or omit, or reflect an amendment of, a petroleum tenure that relates to the authority.
(2)The holder can not apply for the amendment of the authority in any other way.
(3)The application must be—
(a)in the approved form; and
(b)accompanied by the fee prescribed under a regulation.
(4)The Minister may grant or refuse the amendment.
(5)However, the Minister may, before deciding the application, seek advice about the application from the chief executive of the department administering the Water Act.
(6)The amendment may be granted (a conditional grant) subject to the applicant’s written agreement to the Minister amending the authority in a stated way that the Minister considers appropriate.
(7)On refusal of the application or the making of a decision to make a conditional grant, the applicant must be given an information notice about the decision to refuse or to make the conditional grant.

Part 6 Third party storage access to natural underground reservoirs

Division 1 Purpose of part

204Purpose of pt 6

The purpose of this part is for the State to encourage appropriate use of natural underground reservoirs for storage.

Division 2 Storage agreements and related provisions

Subdivision 1 Storage agreements

205Meaning of storage agreement and existing user

(1)A petroleum lease holder may agree (a storage agreement) with someone else (an existing user) to use a natural underground reservoir in the area of the lease to store petroleum or a prescribed storage gas.

Note—

See also section 220 (Preferred tenderer may make storage agreements).
(2)However, the lease holder can not enter into a storage agreement for any of the reservoir’s storage capacity already agreed to be provided under another storage agreement.
(3)The existing user may agree with someone else to store petroleum or a prescribed storage gas in the reservoir to the extent of its storage capacity agreed to be used under the existing user’s storage agreement with the lease holder.
(4)However, the existing user may make the agreement only if it complies with the storage agreement between the lease holder and the existing user.
(5)An agreement under subsection (3) is also a storage agreement.
(6)A person for whom petroleum or a prescribed storage gas is, or is entitled to be, stored under a storage agreement under subsection (3) is also an existing user of the reservoir.

206Development plan overrides storage agreement

If a provision of a storage agreement conflicts with the development plan for the relevant petroleum lease, the development plan prevails to the extent of the inconsistency.

207Existing user’s obligation to give information

Each existing user of a natural underground reservoir in the area of a petroleum lease must give the lease holder the information the holder reasonably requires for the safe and reliable use of the reservoir.

Maximum penalty—500 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.

Subdivision 2 Negotiation obligations of petroleum lease holders and existing users

208Application of sdiv 2

(1)This subdivision applies to a petroleum lease holder or an existing user who has available storage capacity for a natural underground reservoir.
(2)A petroleum lease holder has available storage capacity for a natural underground reservoir if the reservoir is in the area of the lease and it has, or is likely to have, storage capacity that—
(a)the lease holder has not already agreed to provide under a storage agreement that is in force (the contracted capacity); and
(b)does not interfere with the carrying out of authorised activities for the lease; and
(c)is either—
(i)spare; or
(ii)would, if additions of plant were made, or works carried out to increase the reservoir’s storage capacity, be spare; and

Note—

Storage capacity mentioned in subparagraph (ii) is commonly called developable capacity.
(d)is technically and practicably feasible, safe and reliable to use.
(3)However, the contracted capacity, or a part of the contracted capacity, becomes available storage capacity again if—
(a)the existing user of the reservoir gives the lease holder a notice stating the user no longer requires that capacity; and
(b)the contracted capacity would otherwise be available storage capacity under subsection (2).
(4)A notice under subsection (3)(a) may be given for all or a stated part of the contracted capacity.
(5)An existing user of a natural underground reservoir has available storage capacity if the reservoir has, or is likely to have, storage capacity agreed to be provided to the existing user under a storage agreement that the existing user is not using and does not expect to use.

209Obligation to negotiate with proposed users

(1)A person (a proposed user) may give the lease holder or existing user a notice requiring the holder or existing user to, within a stated reasonable time, start negotiations to attempt to reach a storage agreement for available storage capacity for the reservoir.
(2)Subject to section 210, the holder or existing user must negotiate in good faith with the proposed user to attempt to reach a fair and reasonable storage agreement with the proposed user.

Maximum penalty for subsection (2)—500 penalty units.

210Obligation about priority for proposed users

(1)If—
(a)a petroleum lease holder or existing user has started negotiations mentioned in section 209(2) (the first negotiations) with a proposed user; and
(b)after the start of the first negotiations, the lease holder or existing user starts negotiations mentioned in section 209(2) (the second negotiations) with another proposed user; and
(c)the first negotiations have not ended;

the lease holder or existing user must, as far as practicable, ensure the first negotiations are not unreasonably affected by the second negotiations.

Maximum penalty—500 penalty units.

(2)Despite subsection (1), the existing user has priority to negotiate for the storage capacity of the reservoir that will, when the storage agreement by the lease holder (the existing agreement) ends, be available storage capacity for the lease holder.
(3)However, the priority under subsection (2)—
(a)applies only to the extent the storage capacity sought is no more than the existing user’s entitlement under the existing agreement in the last year before it is to end according to its provisions; and
(b)ceases 2 years before the existing agreement ends.

211Obligation to give information

(1)A proposed user may ask the lease holder or existing user for all information that—
(a)the lease holder or existing user has about the lease holder’s or existing user’s available storage capacity for the reservoir; and
(b)is reasonably necessary to allow the proposed user to negotiate a fair and reasonable storage agreement with the lease holder or existing user.

Examples of possible information about available storage capacity—

the amount of the storage capacity and details of the nature and quality of gas already stored in the reservoir
(2)The lease holder or existing user must—
(a)give the information within a reasonable period after receiving the request; and
(b)if the information has been sought by, or given to another proposed user—ensure it is given on a non-discriminatory basis.

Maximum penalty—500 penalty units.

(3)For subsection (2)(b), information is given on a non-discriminatory basis if it is—
(a)the same, or substantially the same, information as that given to other proposed users; or
(b)not so different from information given to other proposed users as to disadvantage the proposed user.
(4)For subsection (3)(a), if the reservoir’s available storage capacity has changed since someone else was given the information, the information given to the proposed user is taken to be substantially the same if, other than for differences that reflect the change, it is the same or substantially the same.

Division 3 Provisions for stored petroleum or prescribed storage gas after petroleum lease ends

Subdivision 1 Preliminary

212Application of div 3

(1)This division applies if—
(a)a petroleum lease (the old lease) ends; and
(b)a natural underground reservoir in the area of the old lease is, under a storage agreement, being used to store petroleum or a prescribed storage gas.
(2)For subsection (1)(a), if an application has been made to renew the old lease and the application is refused, the old lease does not end until the refusal takes effect.
(3)Subsection (1) applies even if the storage agreement has, under its own terms, ceased to have effect.

Subdivision 2 Claiming stored petroleum or prescribed storage gas

213Notice to claim for stored petroleum or prescribed storage gas

(1)The Minister must by gazette notice, invite anyone who claims ownership of the stored petroleum or prescribed storage gas to make that claim by giving a notice that complies with subsection (2) (a notice of claim).
(2)A notice of claim must—
(a)be lodged within 30 business days after the gazettal; and
(b)state details, and include evidence of, each of the following—
(i)any relevant storage agreement;
(ii)how the claimant became the owner of the stored petroleum or prescribed storage gas;
(iii)how much of the stored petroleum or prescribed storage gas is claimed;
(iv)steps taken by the claimant to recover the stored petroleum or prescribed storage gas during the term of the old lease; and
(c)be accompanied by the fee prescribed under a regulation.

214Property in stored petroleum or prescribed storage gas if no notice of claim

If no notice of claim is lodged within the 30 business days, the stored petroleum and prescribed storage gas is taken to have become the property of the State immediately after the old lease ended.

Note—

For property in other petroleum in the reservoir, see section 26.

Subdivision 3 Deciding claims

215Deciding claims

(1)This section applies if within the 30 business days, a notice of claim is lodged.
(2)The Minister must decide whether, immediately before the old lease ended, the claimant owned any of the stored petroleum or prescribed storage gas.
(3)The Minister may decide that the claimant does not own any of the stored petroleum or prescribed storage gas if the Minister considers the claimant did not take reasonable steps to recover it during the term of the old lease.
(4)Subsection (3) applies even if the Minister would, other than for the subsection, have decided that the claimant owned the stored petroleum or prescribed storage gas immediately before the old lease ended.
(5)If it is decided that the claimant owns any of the stored petroleum or prescribed storage gas, the claimant is taken to have been its owner from when the old lease ended.
(6)On deciding a claimant does not own any of the stored petroleum or prescribed storage gas claimed, the claimant must be given an information notice about the decision.

216State property in stored petroleum or prescribed storage gas to extent claims are not upheld

(1)If, under section 215, it is decided that no claimant owned any of the stored petroleum or prescribed storage gas, the gas is taken to have become the property of the State immediately after the old lease ended.
(2)If, under section 215, it is decided that no claimant owned part of the stored petroleum or prescribed storage gas, that part is taken to have become the property of the State immediately after the old lease ended.

Subdivision 4 Dealing with upheld claims

217Application of sdiv 4

This subdivision applies if, under section 215, it is decided any claimant owns any of the stored petroleum or prescribed storage gas.

218Call for tenders required

The Minister must make a call for tenders under section 127 for a proposed petroleum lease the area of which includes the reservoir.

219Requirement to notify change in ownership

(1)If the claimant ceases to own any of the stored petroleum or prescribed storage gas, the claimant must lodge a notice stating—
(a)the name and contact details of any new owner of the stored petroleum or prescribed storage gas; and
(b)how much of the stored petroleum or prescribed storage gas the new owner became the owner of.
(2)If the new owner, or anyone who subsequently acquires any of the stored petroleum or prescribed storage gas, ceases to own any of the stored petroleum or prescribed storage gas, the new owner or other person must lodge a notice under subsection (1).
(3)This section does not apply or ceases to apply if—
(a)the petroleum or prescribed storage gas ceases to be stored in the reservoir; or
(b)the claimant or any new owner is granted a petroleum lease the area of which includes the reservoir; or
(c)a storage agreement is made for the stored petroleum or prescribed storage gas to which agreement the claimant or any new owner is a party; or
(d)under section 226, the stored petroleum or prescribed storage gas becomes the property of the State.

220Preferred tenderer may make storage agreements

(1)A preferred tenderer appointed for the call for tenders may enter into a storage agreement with the following persons, as if the preferred tenderer held the petroleum lease and the lease has taken effect—
(a)if no notices have been lodged under section 219—the claimant;
(b)if any notice has been lodged under section 219—any person who, according to notices lodged under that section, owns the stored petroleum or prescribed storage gas.
(2)A person with whom the preferred tenderer may, under subsection (1), enter into a storage agreement is a current owner of the stored petroleum or prescribed storage gas.

221Negotiation notice

(1)This section applies if, as a result of the call for tenders, a petroleum lease (a non-owner lease) is granted to someone other than a current owner of the stored petroleum or prescribed storage gas.
(2)The Minister must—
(a)give each current owner of the stored petroleum or prescribed storage gas a notice (a negotiation notice) stating—
(i)who holds the non-owner lease; and
(ii)a period within which all current owners of the stored petroleum or prescribed storage gas have to reach a storage agreement with the holder; and
(b)give the holder a copy of the negotiation notice.

222Obligation of holder to negotiate with current owners

On the giving of the negotiation notice to the non-owner lease holder, the holder must, in good faith, negotiate with all current owners of the stored petroleum or prescribed storage gas to attempt to reach a fair and reasonable storage agreement with them.

223Taking of effect of non-owner lease

(1)This section applies despite section 123 and any provision of a non-owner lease.
(2)The non-owner lease does not take effect until the day of effect fixed by the Minister, as notified to its holder.
(3)The Minister must not fix the day of effect unless—
(a)the holder has lodged a notice stating that the holder has entered into a storage agreement with any current owner of stored petroleum or prescribed storage gas; or
(b)all current owners of the stored petroleum or prescribed storage gas have lodged a notice relinquishing their ownership of any of the stored petroleum or prescribed storage gas (an ownership relinquishment notice); or
(c)the period stated in the negotiation notice has ended and the Minister is satisfied the holder has complied with section 222.

224Cancellation of non-owner lease in particular circumstances

Subject to section 225, the non-owner lease is cancelled and is taken never to have had any effect if the Minister has not fixed the day of effect before the last of the following days—
(a)the day of the first anniversary of the grant of the non-owner lease;
(b)a later day stated in the non-owner lease.

225Annual rent for non-owner lease

(1)This section applies despite section 155 or any provision of the non-owner lease.
(2)Annual rent under section 155 for a non-owner lease is payable from granting of the lease.
(3)If, under section 224, the non-owner lease is cancelled the rent is still payable from the grant until it was cancelled.

226State property in stored petroleum or prescribed storage gas in particular circumstances

Any of the stored petroleum or prescribed gas that a current owner owns becomes the property of the State—
(a)if the current owner gives an ownership relinquishment notice for it; or
(b)on the fifth anniversary of the making of the decision under section 215, unless, before that anniversary—
(i)a petroleum lease the area of which includes the reservoir is granted; and
(ii)the lease takes effect.

227Storage rent payable by current owner

(1)Each person who is a current owner of any of the stored petroleum or prescribed storage gas must pay the State rent for storing the stored petroleum or prescribed storage gas that the current owner owns from time to time.
(2)The rent is payable from when the person became the current owner of the stored petroleum or prescribed storage gas until the earlier of the following events to happen—
(a)the person ceases to be the current owner of any of the stored petroleum or prescribed storage gas;
(b)the taking effect of a petroleum lease the area of which includes the reservoir;
(c)under section 226, the stored petroleum or prescribed storage gas becomes the property of the State.
(3)The rent must be paid at the rate and in the way prescribed under a regulation.

Division 4 Regulatory provisions

228Prohibition on actions preventing access

(1)A person must not engage in conduct for the purpose of preventing someone else from obtaining the use of a natural underground reservoir with available storage capacity in the area of a petroleum lease for storage of petroleum or a prescribed storage gas.

Maximum penalty—1,000 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(2)For subsection (1)—
(a)a person engages in conduct for a particular purpose if—
(i)the conduct is or was engaged in for the purpose or for a purpose including the purpose; and
(ii)the purpose is or was not an incidental or unintended consequence of the conduct engaged in; and
(b)a person may be found to have engaged in conduct for a purpose even though, after all the evidence has been considered, the existence of the purpose is ascertainable only by inference from the conduct of the person or of someone else or from other relevant circumstances.
(3)Subsection (2)(b) does not limit the way the purpose of a person may be established for subsection (1).
(4)In this section—
engage, in conduct, means doing, or refusing to do, an act.

Examples of engaging in conduct—

refusing to supply a service
without reasonable grounds, limiting or disrupting a service
making, or giving effect to, a provision of an understanding
requiring the giving of, or giving, a covenant
refusing to do, an act, includes—
(a)refraining, other than inadvertently, from doing the act; or
(b)making it known the act will not be done.

229Orders to enforce prohibition on preventing access

(1)This section applies if, on application of a person, the District Court is satisfied someone else (the obstructor) has engaged, is engaging, or proposes to engage, in conduct contrary to section 228.
(2)The court may make all or any of the following orders—
(a)an order granting an injunction, on terms the court considers appropriate—
(i)restraining the obstructor from engaging in the conduct; or
(ii)if the conduct involves failing to do something—requiring the obstructor to do the thing;
(b)an order directing the obstructor to compensate a person for loss or damage suffered by the person because of the conduct;
(c)another order the court considers appropriate.
(3)The court may make any other order, including an injunction, it considers appropriate against another person involved in the conduct.
(4)The grounds on which the court may decide not to make an order under this section include the ground that this part or a relevant storage agreement provides a more appropriate way of dealing with the issue.

Part 7 Commercial viability assessment

230Minister’s power to require commercial viability report

(1)The Minister may, by notice (a report requirement), require a petroleum tenure holder to lodge a written report (a commercial viability report) about all or a stated part of its area if—
(a)the holder is not producing petroleum in the area or stated part; and
(b)the Minister is of the opinion that—
(i)it may be commercially viable to produce or store petroleum in the area or stated part; or
(ii)it may, within the next 15 years, be commercially viable to produce or store petroleum in the area or stated part.

Note—

For the relevance of this period, see part 1, division 6.
(2)The notice must state each of the following—
(a)the Minister’s opinion under subsection (1)(b)(i) or (ii);
(b)the facts and circumstances forming the basis for the opinion;
(c)that the Minister requires the holder to give the Minister a commercial viability report about the area;
(d)a reasonable period for giving the report.

Note—

For other relevant provisions about giving a document to the Minister, see section 851AA.

231Required content of commercial viability report

(1)A commercial viability report must do all of the following—
(a)identify each natural underground reservoir in the area the subject of the relevant report requirement;
(b)give an estimate of the amount of petroleum in each reservoir;
(c)state the standards and procedures used to make the estimate;
(d)state whether, in the opinion of the relevant petroleum tenure holder, it is commercially viable to produce or store petroleum in the area;
(e)if the holder’s opinion is that it is not commercially viable to produce or store petroleum in the area—state whether, in the holder’s opinion, it will, within the next 15 years, be commercially viable to produce or store petroleum in the area;
(f)give data, and an analysis of the data, that supports each opinion.
(2)The supporting data and analysis must include—
(a)technical data relating to the geology of, and natural underground reservoirs in the area; and
(b)market and financial data relevant to the opinions.

232Minister’s power to obtain independent viability assessment

(1)This section applies for a petroleum tenure, whether or not its holder has lodged a commercial viability report about the tenure.
(2)The Minister may obtain an independent assessment of the commercial viability of petroleum production or storage in all or part of the area of the tenure (an independent viability assessment).
(3)However, before seeking the assessment, the Minister must give the holder a notice stating each of the following—
(a)that the Minister proposes to obtain the assessment;
(b)the Minister’s reasons for seeking the assessment;
(c)the likely costs of obtaining the assessment;
(d)whether the State will, under section 233, seek to recover the costs;
(e)that the holder may, within a stated reasonable period, lodge submissions about the proposed assessment.
(4)Any submissions lodged by the holder within the stated period must be considered.
(5)The Minister must after receiving the assessment, give the holder a copy.

233Costs of independent viability assessment

If—
(a)the Minister has incurred costs in obtaining, under section 232, an independent viability assessment about a petroleum tenure; and
(b)the notice under section 232 about the assessment stated that the State will seek to recover the costs; and
(c)the Minister has given the petroleum tenure holder a notice requiring the holder to pay a reasonable amount for the costs;

the holder must pay the State a reasonable amount for the costs.

Part 8 Petroleum activities coordination

234Arrangement to coordinate petroleum activities

(1)The following persons may make an arrangement about a matter mentioned in subsection (2)—
(a)the holder of a 1923 Act lease;
(b)the applicant for, or the holder of, a petroleum lease;
(c)the applicant for, or the holder of, a mining lease.
(2)For subsection (1), the matters are—
(a)the orderly—
(i)production of petroleum from a natural underground reservoir under more than 1 of the leases; or
(ii)carrying out of an authorised activity for any of the leases by any party to the arrangement; and
(b)petroleum production from more than 1 natural underground reservoir under more than 1 of the leases.
(3)The arrangement may—
(a)be for any term; and
(b)if each holder of a relevant mining or petroleum lease agrees, provide for a matter that is inconsistent with, to the extent mentioned in subsection (3A), or not provided for under the leases or their conditions; and
(c)provide for—
(i)the subleasing of, or of an interest in, a relevant petroleum lease to a party to the arrangement or someone else; and
(ii)a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement.
(3A)For subsection (3)(b), the arrangement may only be inconsistent with 1 or more of the following—
(a)when a petroleum lease holder must start petroleum production under section 154(1);
(b)the development plan or the proposed development plan for a lease mentioned in subsection (1);
(c)the conditions of the lease imposed under—
(i)the 1923 Act, section 44(1)(d); or
(ii)section 123(3); or
(iii)the Mineral Resources Act, section 276(1)(m) or 276(3).
(4)A person other than the holder, or proposed holder, of a coordinated lease may also be a party to a coordination arrangement.
(5)A coordination arrangement has no effect unless it is approved by the Minister under section 236.
(6)In this section—
authorised activity, for—
(a)a mining lease, means an activity that, under the Mineral Resources Act, is an authorised activity for the lease; or
(b)a 1923 Act lease, means an activity that, under the 1923 Act, is an authorised activity for the lease.
coordinated lease means—
(a)2 or more petroleum leases; or
(b)2 or more 1923 Act leases; or
(c)1 or more petroleum leases and 1 or more 1923 Act leases, in any combination; or
(d)1 or more mining lease and 1 or more petroleum leases or 1923 Act leases, in any combination.

Notes—

1

Under the Mineral Resources Act, a coal or oil shale mining lease holder has a limited entitlement to mine and use incidental coal seam gas, which is petroleum. See section 10 of this Act and the Mineral Resources Act, chapter 8, part 8, division 1.

2A coordination arrangement may provide for mining or production from coextensive natural underground reservoirs. See section 114 and the Mineral Resources Act, section 318CQ.

production includes mining, extraction, production or release carried out under a mining lease.

235Applying for ministerial approval of proposed coordination arrangement

(1)The parties to a proposed coordination arrangement may jointly apply for approval of the arrangement.
(2)The application must be—
(a)written; and
(b)accompanied by—
(i)the original or a certified copy of the proposed arrangement; and
(ii)the fee prescribed under a regulation.
(3)If the proposed arrangement is inconsistent with the current development plan for a relevant lease, the application must be accompanied by a proposed later development plan for the lease.
(4)If the proposed plan is for a relevant mining lease, the plan must comply with the later development plan requirements under the Mineral Resources Act.

Note—

See the Mineral Resources Act, section 318ED (Later development plan requirements).
(5)If the proposed plan is for a relevant 1923 Act lease, the plan must comply with the later development plan requirements under the 1923 Act.

236Ministerial approval of proposed coordination arrangement

(1)The Minister may approve the proposed coordination arrangement only if—
(a)the Minister is satisfied—
(i)the arrangement is in the public interest; and
(ii)any inconsistency between the arrangement and a condition of a relevant lease and any sublease provided for under the arrangement is appropriate; and
(iii)if the arrangement applies to land that is in the area of a coal or oil shale mining tenement and in the area of a petroleum lease or 1923 Act lease—the arrangement clearly identifies the safety responsibilities of each party to the arrangement in relation to the land; and
(iv)the spatial relationship between the relevant leases for the arrangement is appropriate.
(b)for an application required to be accompanied by a proposed later development plan for a relevant lease—the proposed plan has been approved; and
(c)the arrangement is consistent with—
(i)the purpose of this Act; and
(ii)if any relevant lease is a mining lease—the purposes of chapter 3 and the objectives of the Mineral Resources Act.

Note—

See sections 3 (Main purpose of Act) and 295 (Main purposes of ch 3) and the Mineral Resources Act, section 2 (Objectives of Act).
(2)Also, if the proposed plan is for a relevant 1923 Act lease, the relevant provisions of that Act apply in relation to the proposed plan.
(3)The Minister may refuse to approve a proposed coordination arrangement that provides for a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement if the Minister considers that—
(a)having regard to the requirements under chapter 4, the pipeline licence would not be granted if the party were to apply for it; or
(b)not enough information has been given to decide whether the licence should be granted; or
(c)the spatial relationship between the leases is not appropriate for a coordination arrangement.
(4)If a relevant lease has not been granted, the approval does not take effect until the lease takes effect.

237Approval does not confer right to renew

To remove any doubt, it is declared that if the term of a coordination arrangement is longer than the current term of any relevant lease, the approval of the arrangement does not impose an obligation or right to renew the lease.

238Subleasing of 1923 Act lease provided for under coordination arrangement

On the approval of a coordination arrangement that provides for the subleasing of a 1923 Act lease, the sublease is taken to be a prescribed dealing with approval from the Minister for registration under the Common Provisions Act.

239Coordination arrangement overrides relevant leases

(1)This section applies if there is a conflict between a coordination arrangement and a condition of a relevant lease.
(2)The arrangement prevails to the extent of the inconsistency.
(3)If a relevant lease holder has complied with the arrangement, the holder is taken to have complied with the condition to the extent that it is inconsistent with the arrangement.
(4)This section applies despite another provision of this Act, the 1923 Act or the Mineral Resources Act.

240Grant of pipeline licence

(1)This section applies if a coordination arrangement provides for a party to the arrangement to be granted a pipeline licence to transport petroleum or a prescribed storage gas on land subject to the arrangement.
(2)The Minister may, if the party applies under chapter 4, part 2, grant the pipeline licence.
(3)Section 412 applies as if the application were a pipeline licence application.
(4)However, the provisions of the licence must be consistent with the arrangement.

241Amendment or cancellation by parties to arrangement

(1)A coordination arrangement may be amended or cancelled by the parties to the arrangement only with the Minister’s approval.
(2)A purported amendment or cancellation of a coordination arrangement by the parties to it has no effect unless it complies with subsection (1).

242Minister’s power to cancel arrangement

(1)The Minister may, by complying with subsections (2) and (3), cancel a coordination arrangement.
(2)If the Minister proposes to cancel the arrangement, the Minister must give each holder of a relevant lease a notice stating—
(a)that the Minister proposes to cancel the arrangement; and
(b)reasons for the proposed cancellation; and
(c)that the holder may lodge submissions within the stated period about the proposed cancellation or the likely impact of the cancellation on the relevant leases.
(3)Before cancelling the arrangement, the following must be considered—
(a)any submissions lodged by the holder within the stated period;
(b)the likely impact of the cancellation on the relevant leases;
(c)the public interest.
(4)If it is decided to cancel the arrangement, each of the holders must be given an information notice about the decision.
(5)The cancellation takes effect on the end of the appeal period for the decision to cancel, or if a later day of effect is stated in the information notice, on that day.
(6)When the decision takes effect, the arrangement and the Minister’s approval of it cease to have effect.

243Effect of cancellation

(1)The cancellation of a former coordination arrangement does not affect any relevant lease.
(2)Any sublease of a petroleum lease or a 1923 Act lease provided for under the arrangement is cancelled.

Part 10 General provisions for petroleum wells, water injection bores, water observation bores and water supply bores

Division 1 Restrictions on drilling

281Requirements for drilling petroleum well

(1)A person drilling a petroleum well must comply with any requirements prescribed under a regulation that apply to the drilling of the well.

Maximum penalty—500 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(2)The requirements may include provisions to prevent the drilling adversely affecting the carrying out of safe and efficient mining or future mining of coal under the Mineral Resources Act.

282Restriction on who may drill water injection bore, water observation bore or water supply bore

(1)A person must not drill a water injection bore, water observation bore or water supply bore unless the person is a licensed water bore driller.

Maximum penalty—300 penalty units.

(2)However, a petroleum tenure holder may drill a water injection bore, water observation bore or water supply bore in the area of the tenure if the holder complies with the requirements for drilling a water injection bore, water observation bore or water supply bore prescribed under a regulation.
(3)Also, a water monitoring authority holder may drill a water injection bore or water observation bore in the area of the authority if the holder complies with the requirements for drilling a water injection bore or water observation bore prescribed under a regulation.

Division 2 Converting petroleum well to water injection bore, water observation bore or water supply bore

282AApplication of div 2

This division applies to a petroleum well in the area of a petroleum tenure that has been drilled as required under section 281, or decommissioned under section 292, on or after 1 January 2012.

283Restrictions on making conversion

(1)The petroleum tenure holder may convert the petroleum well to a water injection bore, water observation bore or water supply bore only if—
(a)the holder lodges—
(i)a well completion report for the well; and
(ii)a notice in the approved form that the holder intends to convert the petroleum well to a water injection bore, water observation bore or water supply bore; and
(b)the holder complies with requirements prescribed under a regulation for converting the petroleum well to a water injection bore, water observation bore or water supply bore.

Maximum penalty—500 penalty units.

(2)The approved form must require the holder to state the day on which the petroleum well will be converted to a water injection bore, water observation bore or water supply bore.
(3)In this section—
well completion report means a well completion report that a regulation requires a petroleum tenure holder to lodge under section 553(1)(b).

284Notice of conversion

The petroleum tenure must, within 10 business days after the holder converts the well, lodge a notice stating the information prescribed under a regulation.

Maximum penalty—50 penalty units.

284ATime of conversion

(1)The petroleum well is taken to be converted to a water injection bore, water observation bore or water supply bore on the earlier of the following—
(a)the day stated in the approved form under section 283;
(b)the day the notice under section 284 is lodged.
(2)However, if the holder fails to give notice under sections 283 and 284, the petroleum well is taken to be converted to a water injection bore, water observation bore or water supply bore immediately after the well is converted.

Division 3 Transfers of petroleum wells, water injection bores, water observation bores and water supply bores

Subdivision 1 General provisions

285Operation of div 3

(1)This division permits, in particular circumstances, the transfer of the following in relation to a petroleum well, water injection bore, water observation bore or water supply bore—
(a)the control of, and responsibility for, the well or bore;
(b)the ownership of any works constructed in connection with the well or bore.

Note—

For the ownership of works mentioned in paragraph (b) generally, see section 542.
(2)In this division, a transfer of a petroleum well, water injection bore, water observation bore or water supply bore is a reference to a transfer in relation to the well or bore mentioned in subsection (1).

286Transfer only permitted under div 3

A purported transfer of a petroleum well, water injection bore, water observation bore or water supply bore is of no effect unless—
(a)the transfer is permitted under this division; and
(b)the requirements under this subdivision for making the transfer have been complied with.

287Effect of transfer

(1)If a petroleum well, water injection bore, water observation bore or water supply bore is transferred under this division, any obligation the transferor had under this Act or another law in relation to the well or bore ceases.
(2)However, if the transferor is someone other than the State, subsection (1) does not apply to the Environmental Protection Act.

Note—

For transfers by the State, see section 294.

Subdivision 2 Permitted transfers

288Transfer of water injection bore, water observation bore or water supply bore to landowner

(1)A petroleum tenure holder may, by complying with the requirements under subsection (3), transfer a water injection bore, water observation bore or water supply bore in the area of the tenure to the landowner.

Note—

See also the Water Act 2000, section 808.
(2)A water monitoring authority holder may, by complying with the requirements under subsection (3), transfer a water injection bore or water observation bore in the area of the authority to the landowner.
(3)For subsections (1) and (2), the requirements are that each of the following have been lodged—
(a)a notice in the approved form;
(b)the transfer fee prescribed under a regulation.
(4)The approved form must require—
(a)a statement by the holder transferring the bore that—
(i)if the bore has been drilled under section 282section 282 has been complied with for the bore; or
(ii)if the bore has been converted from a petroleum well under section 283section 283 has been complied with for the bore; and
(b)the signed consent of the landowner to the transfer.
(5)In this section—
landowner means the owner of the land on which the bore is located.

288A Transfer of water observation bore to State

(1)A petroleum tenure holder or water monitoring authority holder may transfer a water observation bore in the area of the tenure or authority to the State if—
(a)the holder gives the chief executive a notice, in the approved form, offering to transfer the bore to the State; and
(b)the chief executive receives the notice no later than 60 business days before the holder must, as required under section 292, decommission the bore; and
(c)the chief executive, within 20 business days after receiving the notice, gives the holder notice that the State consents to the transfer.
(2)The approved form must require a statement by the holder transferring the bore that, if the bore was drilled under section 282, that section has been complied with for the bore.
(3)If the chief executive gives the holder a notice under subsection (1)(c), the notice must state the day the transfer takes effect.
(4)If the chief executive does not give the holder a notice under subsection (1)(c), the holder must, as required under section 292, decommission the bore.

Editor’s note—

Section 288A is an uncommenced amendment—see 2018 Act No. 24 s 208.

289Transfer of petroleum well to holder of geothermal tenure or mining tenement

A petroleum tenure holder may transfer a petroleum well in the petroleum tenure’s area to the holder of a geothermal tenure or mining tenement if—
(a)the well is in the geothermal tenure’s or mining tenement’s area; and
(b)a notice in the approved form and the transfer fee prescribed under a regulation have been lodged.

290Transfer of water observation bore to petroleum tenure or water monitoring authority holder

(1)A petroleum tenure holder or water monitoring authority holder may transfer a water observation bore in the area of the tenure or authority to the holder of another petroleum tenure or water monitoring authority if—
(a)the bore is in the area of the other tenure or authority; and
(b)a notice in the approved form and the transfer fee prescribed under a regulation have been lodged.
(2)The approved form must require a statement by the holder transferring the bore that section 282 has been complied with for the bore.

Subdivision 3 Notice of transfer

291Notice of transfer to Water Act regulator or Mineral Resources Act chief executive

(1)If a transfer is made under section 288, the chief executive must give the Water Act regulator notice of the transfer.
(2)If a transfer is made under section 289, the chief executive must give the chief executive that administers the Mineral Resources Act notice of the transfer.
(3)A failure to comply with subsection (1) or (2) does not invalidate or otherwise affect the transfer.

Division 4 Decommissioning of petroleum wells, water injection bores, water observation bores and water supply bores

292Obligation to decommission

(1)This section applies to a person (the responsible person) who holds a petroleum tenure on which there is a petroleum well, water injection bore, water observation bore or water supply bore drilled by or for the tenure holder or that has been transferred to the tenure holder, unless the well or bore has, under division 3, been transferred to someone else.
(2)The responsible person must ensure the well or bore is decommissioned from use under this Act before—
(a)the tenure or authority ends; or
(b)the land on which the well or bore is located ceases to be in the area of the tenure or authority.

Maximum penalty—500 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(3)However, subsection (2) does not apply—
(a)for land that, under section 101(1), ceases to be in the area of an authority to prospect; or
(b)if the tenure or authority ends because it is divided under this chapter; or
(c)for a petroleum well—
(i)if a GHG tenure is granted; and
(ii)the GHG tenure’s area includes the well; and
(iii)the petroleum tenure holder and the GHG tenure holder have agreed in writing that the GHG tenure holder is to assume responsibility for the well; and
(iv)a copy of the agreement has been lodged.
(4)For subsection (2), the well or bore is decommissioned from use under this Act only if—
(a)it has been plugged and abandoned in the way prescribed under a regulation; and
(b)for a bore—the decommissioning complies with the Water Act, sections 816 and 817; and
(c)the responsible person has given the chief executive a notice, in the approved form, about the decommissioning of the well or bore.

Note—

For the power of an authorised person to ensure compliance, see section 580.
(5)Subsection (4)(b) applies only to the extent it is not inconsistent with subsection (4)(a).

293Right of entry to facilitate decommissioning

(1)This section applies if—
(a)a responsible person under section 292 has not carried out decommissioning on land as required under that section; and
(b)the relevant petroleum tenure or water monitoring authority has ended or the land on which the well or bore is located is no longer in the area of the tenure or authority.
(2)The responsible person may enter the following land to carry out the decommissioning—
(a)land (the primary land) on which the decommissioning must be, or was required to be, carried out;
(b)any other land (the access land) it is reasonably necessary to cross for access to the primary land.
(3)The Common Provisions Act, chapter 3, parts 2, 3 and 6 and part 7, divisions 1, 2 and 5 (other than subdivision 3) applies to the responsible person, in the following way—
(a)if the tenure or authority has ended, as if—
(i)it were still in force; and
(ii)the person is its holder;
(b)as if the primary land and access land is in the area of the tenure or authority;
(c)as if the decommissioning is an authorised activity for the tenure or authority.

294Responsibility for well or bore after decommissioning

(1)This section applies if a petroleum tenure holder or water monitoring authority holder has, under section 292, decommissioned a petroleum well, water injection bore, water observation bore or water supply bore.

Note—

For ownership before decommissioning, see section 542.
(2)Despite the decommissioning, the holder continues to be responsible under this Act for the well or bore until the earlier of the following times (the relevant time)—
(a)when the tenure or authority ends;
(b)when the land on which the well or bore is located ceased to be in the area of the tenure or authority.
(3)At the relevant time the well or bore is taken to have been transferred to the State.
(4)Subsection (3) applies despite—
(a)the well or bore being on or part of land owned by someone else; or
(b)the sale or other disposal of the land.
(5)After the relevant time, the State may transfer the well or bore.
(6)However—
(a)the transfer from the State can only be to—
(i)the owner of the land on which the well or bore is located; or
(ii)the holder of a geothermal tenure or mining tenement the area of which includes that land; and
(b)the transfer from the State and the use of the well or bore by the transferee is subject to this Act and any other relevant Act or law.

Division 5 Remediation activity

294ADefinitions for div 5

In this part—
authorised person means a person authorised by the chief executive, under section 294B, to carry out a remediation activity.
lower flammability limit means the smallest amount of gas that supports a self-propagating flame when mixed with air (or oxygen) and ignited.
remediation activity see section 294B.

294BAuthorised person to carry out remediation activities

(1)The chief executive may authorise a person to remediate any of the following bores or wells and to rehabilitate the surrounding area in compliance with the requirements prescribed under a regulation (the remediation activity)—
(a)a bore or well posing a risk to life or property;
(b)a bore or well the chief executive reasonably believes is a legacy borehole;
(c)a bore or well on fire or emitting gas causing a gas concentration in the surrounding air greater than the lower flammability limit.
(2)In this section—
remediate, a bore or well, includes plug and abandon the bore or well.

294CEntering land to carry out remediation activities

(1)This section applies to the following land—
(a)land (primary land) on which a legacy borehole exists;
(b)land (adjacent land) that is adjacent to primary land if an authorised person has no other reasonably practicable way of entering the primary land without entering the adjacent land.
(2)An authorised person may enter land to carry out a remediation activity—
(a)if the remediation activity relates to a bore or well mentioned in section 294B(1)(a) or (c)—at any time; or
(b)otherwise—within a period of 10 business days starting on the earlier of the following days—
(i)the day the owner of the land is given notice of the entry under section 294D;
(ii)the day the occupier of the land is given notice of the entry under section 294D.
(3)However, subsection (2) does not authorise the entry of a structure, or a part of a structure, used for residential purposes without the consent of the occupier of the structure or part.

294DNotice of entry

(1)An authorised person entering land under section 294C to carry out a remediation activity must give the owner and the occupier of the land written notice of the entry—
(a)if the remediation activity relates to a bore or well mentioned in section 294B(1)(a) or (c)—within 10 business days after the entry is made; or
(b)otherwise—before entering the land.
(2)The written notice must state the following—
(a)when the entry was, or is to be, made;
(b)the purpose of the entry;
(c)that the authorised person is permitted under this Act to enter the land without consent or a warrant;
(d)the remediation activity carried out or proposed to be carried out.

294EObligation of authorised person in carrying out remediation activity

An authorised person who enters land under this part—
(a)must not cause, or contribute to, unnecessary damage to any structure or works on the land; and
(b)must take all reasonable steps to ensure the person causes as little inconvenience, and does as little other damage, as is practicable in the circumstances.

294FApplication of particular safety Acts to remediation activity

(1)The place at which a remediation activity is authorised to be carried out is taken to be a coal mine, to which the Coal Mining Safety and Health Act 1999 applies, if the authorised person ordinarily carries out similar activities under that Act.
(2)The place at which a remediation activity is authorised to be carried out is taken to be a mine, to which the Mining and Quarrying Safety and Health Act 1999 applies, if the authorised person ordinarily carries out similar activities under that Act.
(3)The place at which a remediation activity is authorised to be carried out is taken to be an operating plant under this Act if the authorised person ordinarily carries out similar activities under this Act.

Chapter 3 Provisions for coal seam gas

Part 1 Preliminary

Division 1 Introduction

297Relationship with chs 2 and 5 and ch 15, pt 3 and the Common Provisions Act

(1)Requirements and restrictions under this chapter apply as well as any relevant requirements under chapters 2 or 5 or chapter 15, part 3 or the Common Provisions Act.
(2)If this chapter imposes a requirement for or a restriction on the granting, renewal, division or transfer of a petroleum tenure, the tenure can not be granted, renewed, divided or transferred if the restriction applies or if the requirement has not been complied with.
(3)If this chapter imposes a requirement for or a restriction on the carrying out of an authorised activity for a petroleum tenure or data acquisition authority, despite chapter 2, the activity is not an authorised activity for the tenure while the restriction applies or if the requirement has not been complied with.
(4)If a provision of this chapter conflicts with a provision of chapter 2 or 5 or chapter 15, part 3 or the Common Provisions Act, the provision of this chapter prevails to the extent of the inconsistency.

298Description of petroleum leases for ch 3 and ch 15, pt 3

Despite section 29 and any provision of this chapter or chapter 15, part 3, a petroleum lease applied for or granted under this chapter may be described in metes and bounds.

Division 2 Definitions for chapter 3

299What is coal seam gas and incidental coal seam gas

(1)Coal seam gas is petroleum (in any state) occurring naturally in association with coal or oil shale, or in strata associated with coal or oil shale mining.
(2)Incidental coal seam gas is incidental coal seam gas as defined under the Mineral Resources Act, section 318CM(2).

300What is oil shale

Oil shale is any shale or other rock (other than coal) from which a gasification or retorting product may be extracted or produced.

301What is a coal exploration tenement and a coal mining lease

(1)A coal exploration tenement is an exploration permit or mineral development licence under the Mineral Resources Act granted for coal.
(2)A coal mining lease is—
(a)a mining lease for coal; or
(b)a special coal mining lease granted under any of the following Acts, an agreement provided for under any of the Acts or any amendment of an agreement provided for under any of the Acts—
(i)the Central Queensland Coal Associates Agreement Act 1968;
(ii)the Thiess Peabody Mitsui Coal Pty. Ltd. Agreements Acts 1962 to 1965; or
(c)a specific purpose mining lease for a purpose associated with, arising from or promoting the activity of coal mining, whether or not it is also granted for a purpose other than coal mining.
(3)Subsections (1) and (2)(a) apply whether or not the lease, permit or licence is also granted for another mineral.
(4)However, for parts 1 to 5—
(a)a coal exploration tenement does not include an exploration permit or mineral development licence granted for coal to which the Common Provisions Act, chapter 4, applies; and
(b)a coal mining lease does not include a mining lease granted for coal to which the Common Provisions Act, chapter 4, applies.

302What is an oil shale exploration tenement and an oil shale mining lease

(1)An oil shale exploration tenement is an exploration permit or mineral development licence granted for oil shale.
(2)An oil shale mining lease is—
(a)a mining lease for oil shale; or
(b)a specific purpose mining lease for a purpose associated with, arising from or promoting the activity of oil shale mining, whether or not it is also granted for a purpose other than oil shale mining.
(3)Subsections (1) and (2)(a) apply whether or not the lease, permit or licence is also granted for another mineral.

303What is a coal or oil shale mining tenement

A coal or oil shale mining tenement is—
(a)a coal exploration tenement; or
(b)an oil shale exploration tenement; or
(c)a coal or oil shale mining lease.

303A What is a petroleum tenure

For parts 1 to 5—
(a)a petroleum lease does not include a petroleum lease to which the Common Provisions Act, chapter 4, applies; and
(b)an authority to prospect does not include an authority to prospect to which the Common Provisions Act, chapter 4, applies.

Part 2 Obtaining petroleum lease over land in area of coal or oil shale exploration tenement

Division 1 Obtaining petroleum lease other than by or jointly with, or with the consent of, coal or oil shale exploration tenement holder

Subdivision 1 Preliminary

304Application of div 1

(1)This division applies if—
(a)land is in the area of a coal or oil shale exploration tenement; and
(b)a person, who, under section 117, may make an ATP-related application for all or part of the land wishes to make that application.
(2)However, this division does not apply if—
(a)the person is the tenement holder; or
(b)if the application is to be made jointly with the tenement holder; or
(c)the application is made with the tenement holder’s written consent; or
(d)the coal or oil shale exploration tenement is a mineral (f) pilot tenure.

Note—

For the circumstances mentioned in subsection (2), see division 2.

Subdivision 2 Provisions for making petroleum lease application

305Additional requirements for making application

(1)The ATP-related application must include the following—
(a)a statement (a CSG statement) that complies with section 306;
(b)other information that addresses the matters mentioned in subsection (2) (the CSG assessment criteria), other than the matter mentioned in subsection (2)(e)(iii).
(2)The CSG assessment criteria are—
(a)the requirements of chapter 9; and
(b)the initial development plan requirements; and
(c)the additional requirements under part 6 for proposed initial development plans; and
(d)the legitimate business interests of the applicant and the coal or oil shale exploration tenement holder (the parties); and

Examples of a party’s legitimate business interests—

contractual obligations
the effect on, and use of, existing infrastructure or mining or production facilities
exploration expenditure on relevant overlapping tenures
(e)the effect of the proposed petroleum lease on the future development of coal or oil shale resources from the land, including, for example, each of the following—
(i)the proposed timing and rate of petroleum production and the development of coal or oil shale resources from the land;
(ii)the potential for the parties to make a coordination arrangement about—
(A)petroleum production under the proposed petroleum lease; and
(B)coal or oil shale mining and any incidental coal seam gas mining under any future mining lease over the land;
(iii)the attempts required of the applicant under section 310(1)(b) and any changes of the type mentioned in section 310(1)(c);
(iv)the economic and technical viability of the concurrent or coordinated petroleum production and the development of any coal or oil shale resources in the land;
(v)the extent, nature and value of petroleum production and the development of any coal or oil shale resources in the land; and
(f)the public interest in petroleum production from, and the development of any coal or oil shale resources in, the land, having regard to the public interest.
(3)The proposed development plan included in the application must also comply with part 6.

306Content requirements for CSG statement

(1)A CSG statement must—
(a)assess—
(i)the likely effect of proposed petroleum production on the future development of coal or oil shale resources from the land; and
(ii)the technical and commercial feasibility of coordinated petroleum production and coal or oil shale mining from the land; and
(b)include an overview of a proposed safety management system for all operating plant, or proposed operating plant, for proposed petroleum production under the lease that may affect possible future safe and efficient mining under a coal or oil shale mining lease.
(2)The proposed safety management system must—
(a)for activities of the plant that may affect future safe and efficient mining of coal, comply with the requirements under sections 675 and 705C for a safety management system; and
(b)include proposals for the minimisation of potential adverse effects on possible future safe and efficient mining under a future mining lease.

Subdivision 3 Provisions for applications in particular circumstances

307Applications relating to exploration tenement and mining lease not held by same person

(1)This section applies if a person to whom this division applies wishes to make an application to which this division applies—
(a)for land in the area of each of the following—
(i)the coal or oil shale exploration tenement (the exploration tenement part);
(ii)a coal or oil shale mining lease (the mining lease part); and
(b)the exploration tenement and the mining lease are not held by the same person.

Note—

If the coal or oil shale exploration tenement and the coal or oil shale mining lease are held by the same person, see section 344(3).
(2)The person may make separate ATP-related applications for the exploration tenement part and the mining lease part.
(3)A separate application for the exploration tenement part, or the part of an application that relates to the exploration tenement part, must be decided under this division.
(4)A separate application for the mining lease part, or the part of an application that relates to the mining lease part, must be decided under part 3.

308Applications relating to other land

(1)This section applies if—
(a)a person to whom this division applies wishes to make an application to which this division applies; and
(b)the proposed application includes land (the other part) not in the area of a coal or oil shale mining tenement.
(2)The person may lodge a separate ATP-related application for the other part.
(3)A separate application for the other part, or the part of an application that relates to the other part, must be decided under chapter 2.

Subdivision 4 Obligations of applicant and coal or oil shale exploration tenement holder

310Applicant’s obligations

(1)The applicant must—
(a)within 10 business days after making the ATP-related application, give the coal or oil shale exploration tenement holder a copy of the application, other than any part of the application that relates to the capability criteria; and
(b)use reasonable attempts to—
(i)consult with the tenement holder about the applicant’s proposed development plan and proposed safety management system; and
(ii)make an appropriate arrangement with the tenement holder about advanced testing carried out, or proposed to be carried out, by the tenement holder (a testing arrangement); and

Example of advanced testing—

bulk sampling

Note—

See also part 8 (Confidentiality of information).
(c)change the proposed plan or system to give effect to any reasonable proposal by the tenement holder that will optimise the safe and efficient production of—
(i)petroleum under the proposed petroleum lease; and
(ii)coal or oil shale under any future mining lease over the land; and
(d)within 4 months after the making of the application, lodge a notice stating each of the following—
(i)the details of the consultation;
(ii)the results of the consultation;
(iii)any comments the applicant wishes to make about any submissions lodged by the tenement holder, under section 314;
(iv)any changes to the proposed development plan or proposed safety management system;
(v)if a testing arrangement has been made—details of the arrangement;
(vi)if a testing arrangement has not been made—details of the attempts made to make a testing arrangement;
(vii)the applicant’s assessment of the potential for the applicant and the tenement holder to make a coordination arrangement about—
(A)petroleum production under the proposed petroleum lease; and
(B)coal or oil shale mining and any incidental coal seam gas mining under any future mining lease over the land.
(2)However, the obligations under subsection (1)(b)(ii) and (c) apply only to the extent the provisions or arrangement are commercially and technically feasible for the applicant.
(3)For subsection (1)(b)(ii), if the exploration tenement is an exploration permit, it is appropriate for the agreement to give the permit holder the right to carry out advanced testing to satisfy the Minister under the Mineral Resources Act, section 186(6)(a).
(4)However, subsection (3) does not require the applicant to agree to testing having a duration of more than 12 months.

311Minister may require further negotiation

(1)The Minister may, after receiving the notice under section 310(1)(d), require the applicant to conduct negotiations with the coal or oil shale exploration tenement holder with a view to—
(a)making a testing arrangement mentioned in section 310(1)(b)(ii); or
(b)making changes of a type mentioned in section 310(1)(c).
(2)The applicant must use all reasonable attempts to comply with the requirement.

312Consequence of applicant not complying with obligations or requirement

If the Minister is reasonably satisfied the applicant has not complied with an obligation under section 310 or 311, the ATP-related application may be refused.

313Obligations of coal or oil shale exploration tenement holder

The coal or oil shale exploration tenement holder must—
(a)within 20 business days after receiving a copy of the application, give the applicant basic information the tenement holder has about the following that the applicant may reasonably need to comply with sections 305, 306 and 310
(i)the type of exploration activities carried out, or proposed to be carried out under the tenement;
(ii)coal or oil shale resources in the land; and
(b)after receiving a copy of the ATP-related application, make reasonable attempts to reach an agreement with the applicant about the matters mentioned in section 310(1)(b) that provides the best resource use outcome without significantly affecting the parties’ rights or interests.

314Submissions by coal or oil shale exploration tenement holder

(1)The coal or oil shale exploration tenement holder may lodge submissions about the ATP-related application.
(2)However, the submissions may be lodged only within 3 months after the holder is, under section 310(1)(a), given a copy of the application (the submission period).
(3)The submissions may—
(a)state that the holder does not object to the granting of the proposed petroleum lease; and
(b)state that the holder does not wish any preference for the future development of coal or oil shale from the land (coal or oil shale development preference); and
(c)include information about all or any of the following—
(i)exploration carried out under the tenement;
(ii)the results of the exploration;
(iii)the prospects for future coal or oil shale mining or incidental coal seam gas mining from the land; and
(d)include a proposal by the tenement holder for the development of coal or oil shale in the land; and
(e)include information relevant to the CSG assessment criteria; and
(f)include reasonable provisions for the safety management system for petroleum production under the petroleum lease.
(4)The holder must give the applicant a copy of the submissions.
(5)In deciding the ATP-related application, regard must be had to the submissions.

Subdivision 5 Priority for earlier coal or oil shale mining lease application or proposed application

315Earlier coal or oil shale mining lease application

(1)The ATP-related application must not be decided if—
(a)before the making of the ATP-related application, a coal or oil shale mining lease application was made for the land; and
(b)the mining lease application complies with the Mineral Resources Act, sections 245 and 246, and any relevant provision of chapter 8 of that Act; and
(c)the mining lease application has not been decided.
(2)However, subsection (1) does not apply if—
(a)the ATP-related application was made in response to an invitation in a notice given under the Mineral Resources Act, section 318BG and the application was made within 6 months after the giving of the notice; or
(b)the coal or oil shale mining lease applicant has given written consent to the petroleum lease application.

Note—

See however the Mineral Resources Act, chapter 8, part 4 (Coal mining lease and oil shale mining lease applications in response to Petroleum and Gas (Production and Safety) Act preference decision).

See also the Mineral Resources Act, section 318AY (Earlier petroleum lease application).

316Proposed coal or oil shale mining lease for which EIS approval given

(1)The ATP-related application must not be decided if—
(a)before the making of the ATP-related application, an approval under the Environmental Protection Act, chapter 3, part 2, was granted for the voluntary preparation of an EIS for a project that is, or includes, a proposed coal or oil shale mining lease mining lease for the land; and
(b)the proponent for the EIS—
(i)is, or includes, the coal or oil shale exploration tenement holder; or
(ii)is someone else who has the tenement holder’s consent.
(2)However, subsection (1) ceases to apply if—
(a)the proponent of the EIS does not make a coal or oil shale mining lease application for the land within 1 year after the granting of the approval; or
(b)a coal or oil shale mining lease application is made for the land within the period mentioned in paragraph (a) and—
(i)it does not comply with the Mineral Resources Act, sections 245 and 246, and any relevant provision of chapter 8 of that Act; or
(ii)it is decided; or
(c)the proponent for the EIS has given written consent to the petroleum lease application.

317Proposed mining lease declared a coordinated project

(1)The ATP-related application must not be decided if—
(a)before the making of the ATP-related application, a coordinated project is declared for a proposed coal or oil shale mining lease for the land; and
(b)the proponent for the coordinated project—
(i)is, or includes, the coal or oil shale exploration tenement holder; or
(ii)is someone else who has the tenement holder’s consent.
(2)However, subsection (1) ceases to apply if—
(a)the proponent of the coordinated project does not make a coal or oil shale mining lease application for the land within 1 year after the making of the declaration; or
(b)a coal or oil shale mining lease application is made for the land within the period mentioned in paragraph (a) and—
(i)it does not comply with the Mineral Resources Act, sections 245 and 246, and any relevant provision of chapter 8 of that Act; or
(ii)it is decided.
(c)the proponent of the coordinated project has given written consent to the mining lease application.

Subdivision 6 Ministerial decision about whether to give any preference to development of coal or oil shale resources

318When preference decision is required

(1)This subdivision applies for the application only if the Minister is satisfied of each of the following—
(a)there is a resource or reserve (the deposit) of coal or oil shale in the land;
(b)the deposit has been identified under the relevant code;
(c)there is the level of knowledge about the deposit, as prescribed under a regulation;
(d)the location, quantity, quality, geological characteristics and continuity of the deposit are known, or have been estimated or interpreted, from specific geological evidence and knowledge;
(e)there are reasonable prospects for the eventual economic mining of the deposit.
(2)However, this subdivision does not apply if—
(a)the coal or oil shale exploration tenement holder has not complied with section 313(a); or
(b)the tenement holder has, under section 314, lodged a submission stating that the holder does not wish any coal or oil shale development preference for the land; or
(c)the tenement holder has not lodged any submission under section 314 within the submission period.
(3)If the Minister decides that the Minister is not satisfied as mentioned in subsection (1), the tenement holder must be given notice of the decision.
(4)In this section—
relevant code means any of the following—
(a)the document called ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code)’ and incorporated guidelines, published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC), as amended and published from time to time;
(b)another document (however called) published by JORC that amends or replaces the code mentioned in paragraph (a);
(c)if a document mentioned in paragraph (a) or (b) stops being published—another similar document prescribed under a regulation.

Notes—

1If the Minister is not satisfied as mentioned in subsection (1), the application can be decided under chapter 2.
2If this subdivision does not apply because of subsection (2), the application can be decided under chapter 2 and subdivision 8.

319Decision about whether to give any preference to development of coal or oil shale

(1)Subject to section 320, the Minister must decide whether to—
(a)grant the petroleum lease application; or
(b)give any coal or oil shale development preference for the land, in whole or part.
(2)The decision under subsection (1) is the preference decision.
(3)In making the preference decision the CSG assessment criteria must be considered.
(4)If, under the Mineral Resources Act, chapter 8, part 2, division 6, petroleum development preference has been given for the land, the preference decision is taken to be not to give coal or oil shale development preference for any of the land.

320Reference to Land Court before making preference decision

(1)Before making the preference decision—
(a)the chief executive must refer the application to the Land Court for it to make recommendations to the Minister about what the preference decision should be; and
(b)the Minister must consider the recommendations.
(2)The referral must be made by filing a notice in the approved form with the registrar of the Land Court.
(3)The referral starts a proceeding before the Land Court for it to make the recommendations.
(4)The parties to the proceeding are the applicant and the coal or oil shale exploration tenement holder.
(5)In making the recommendations—
(a)the CSG assessment criteria must be considered; and
(b)section 321 applies as if a reference in the section—
(i)to the Minister were a reference to the Land Court; and
(ii)to coal or oil shale development preference were a reference to recommending coal or oil shale development preference.
(6)The recommendations may also include recommendations about the conditions and term of the petroleum lease.

321Restrictions on giving preference

(1)Coal or oil shale development preference, in whole or part, must not be given unless this section has been complied with.
(2)Coal or oil shale development preference may be given only if the Minister is satisfied of each of the following—
(a)on the basis of the submissions and the results of consultation lodged under sections 310 and 314, it is either not commercially or technically feasible or it is unlikely that the applicant and the coal or oil shale exploration tenement holder are able to make a future coordination arrangement about—
(i)petroleum production under the proposed petroleum lease; and
(ii)coal or oil shale mining and any incidental coal seam gas mining under any future mining lease for the land;
(b)that, having regard to the public interest, the public interest in the following would be best served by not granting a petroleum lease to the petroleum lease applicant first—
(i)petroleum production;
(ii)coal or oil shale mining and any incidental coal seam gas mining;
(c)if the coal or oil shale is a brownfield coal or oil shale resource—
(i)it is critical to the continuance of an existing mining operation or the efficient use of infrastructure related to the operation; and
(ii)the applicant’s proposed development plan is incompatible with the future development of the resource;
(d)if the coal or oil shale is a greenfield coal or oil shale resource—
(i)it is commercially viable; and
(ii)coal or oil shale mining will, if a mining lease is granted to the tenement holder, start within 2 years after the grant of the lease.
(3)In this section—
brownfield coal or oil shale resource means coal or oil shale associated with, or adjacent to, an existing mining operation under the Mineral Resources Act.
greenfield coal or oil shale resource means coal or oil shale that is not associated with, or adjacent to, an existing mining operation under the Mineral Resources Act.

Subdivision 7 Process if preference decision is to give any preference to development of coal or oil shale resources

322Application of sdiv 7

This subdivision applies only if, under section 318, a preference decision is required and that decision was to give coal or oil shale development preference for the whole or part of the land.

323Notice to applicant and coal or oil shale exploration tenement holder

(1)The chief executive must give the applicant and the coal or oil shale exploration tenement holder notice of the preference decision.
(2)The notice must invite the tenement holder to, within 6 months after the giving of the notice (the mining lease application period), apply for a mining lease for—
(a)if the preference is for all of the land—all of the land; or
(b)if the preference is for part of the land—that part.

324Mining lease application for all of the land

(1)This section applies if the preference is for all of the land and, within the mining lease application period, the coal or oil shale exploration tenement holder applies for a mining lease for all of the land.
(2)A further step can not be taken to decide the ATP-related application until after the mining lease application has been decided.

Note—

See however the Mineral Resources Act, chapter 8, part 4 (Coal mining lease and oil shale mining lease applications in response to Petroleum and Gas (Production and Safety) Act preference decision).
(3)If the decision on the mining lease application is to grant a mining lease for all of the land, the ATP-related application is taken to have lapsed, unless the coal or oil shale exploration tenement holder has consented in writing to the application.

325Mining lease application for part of the land

(1)This section applies if the coal or oil shale exploration tenement holder applies for a mining lease for part of the land within the mining lease application period.
(2)The person who made the ATP-related application may amend it so that a petroleum lease is only sought for all or part of the rest of the land.
(3)Unless the amendment is made, a further step can not be taken to decide the ATP-related application until after the mining lease application has been decided.
(4)If—
(a)the amendment has not been made; and
(b)the decision on the mining lease application is to grant a mining lease for part of the land;

the person who made the ATP-related application may amend it so that a petroleum lease is only sought for all or part of the rest of the land.

Note—

If the petroleum lease application is not amended, see section 350.

326No mining lease application

If the coal or oil shale exploration tenement holder does not apply for a mining lease for any of the land within the mining lease application period, the ATP-related application may be decided.

Subdivision 8 Deciding petroleum lease

327Application of sdiv 8

This subdivision applies if—
(a)the coal or oil shale exploration tenement holder has not complied with section 313(a); or
(b)the tenement holder has, under section 314, lodged a submission stating that the holder does not wish any coal or oil shale development preference for the land; or
(c)the tenement holder has not lodged any submission under section 314 within the submission period; or
(d)under section 318, a preference decision is required and—
(i)the preference decision was not to give coal or oil shale development preference for any of the land; or
(ii)the preference decision was to give coal or oil shale development preference for the whole or part of the land and, after subdivision 7 is complied with, the Minister decides to grant a petroleum lease for the land.

328Additional criteria for deciding provisions of petroleum lease

(1)In deciding the provisions of the petroleum lease the following must also be considered—
(a)the CSG assessment criteria;
(b)the effect of the petroleum lease on safe and efficient mining of coal or oil shale under any adjacent lease;
(c)the effect on safe and efficient mining of coal or oil shale under any future coal or oil shale mining lease that arises from the coal or oil shale exploration tenement.
(2)Subsection (1) does not limit other matters that must be considered under chapter 2.

Note—

See sections 104 to 123, 133 and 134.

329Power to impose relinquishment condition

(1)In deciding the provisions of the petroleum lease, a condition may be imposed that its holder is required, by a lodged notice, to relinquish a stated part or percentage of its area at stated times or intervals.

Note—

See however section 368 (Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement).
(2)A condition mentioned in subsection (1) is a relinquishment condition.

Note—

See also section 367 (Requirement for giving of copy of relinquishment report).
(3)This section does not limit any power under chapter 2 to impose conditions on the petroleum lease.
(4)A relinquishment under a relinquishment condition takes effect on the day after the notice is lodged.

330Publication of outcome of application

(1)After the Minister decides whether to grant the petroleum lease, the chief executive must publish a notice about the outcome of the application in the gazette or another publication the Minister considers appropriate.
(2)The notice must state—
(a)whether the Minister decided to grant or not to grant the petroleum lease; and
(b)if the decision was to grant—any conditions of the petroleum lease other than the mandatory conditions; and
(c)if, under section 318, a preference decision was required and that decision was to give coal or oil shale development preference for the whole or part of the land—the decision, and the reasons for it.
(3)However, if the chief executive considers that information in any condition is commercial-in-confidence, the chief executive may, instead of publishing the condition, publish a statement about the intent of the condition.

Division 2 Petroleum lease application by or jointly with, or with the consent of, coal or oil shale exploration tenement holder

331Application of div 2

(1)This division applies if—
(a)land is in the area of a coal or oil shale exploration tenement; and
(b)a person who, under section 117, may make an ATP-related application for all or part of the land wishes to make that application; and
(c)the tenement holder has consented to the making of the application.
(2)This division also applies if—
(a)land is in the area of a coal or oil shale exploration tenement; and
(b)a person as follows wishes to apply for a petroleum lease for all or part of the land—
(i)the coal or oil shale exploration tenement holder;
(ii)a person who wishes to make the application jointly with the holder; and
(c)a person mentioned in paragraph (b) has made a coal mining lease application or oil shale mining lease application for the land and the application is not for a specific purpose mining lease; and
(d)the purpose of the proposed petroleum lease application is to allow the use of incidental coal seam gas for a purpose other than a use or activity under the Mineral Resources Act, section 318CN(2)(a) or (b), or 318CNA(2)(a) or (b).

Note—

See the Mineral Resources Act, section 318CN (Use that may be made under mining lease of incidental coal seam gas).
(3)However, this division does not apply if land is in the area of a coal or oil shale exploration tenement that is a mineral (f) pilot tenure.

332Right to apply for petroleum lease

(1)The person may apply for a petroleum lease for all or part of the land.
(2)The area of the proposed petroleum lease need not comply with section 168(4) to (8).7).

333Requirements for making application

(1)The petroleum lease application must—
(a)comply with the requirements under section 118 for making an ATP-related application; and
(b)include—
(i)a CSG statement; and

Note—

See section 306 (Content requirements for CSG statement).
(ii)other information that addresses the CSG assessment criteria.
(2)The proposed initial development plan required under section 118 must, as well as complying with the initial development plan requirements, also comply with part 6, division 1.

334No calls for tenders after application made

A call for tenders for a petroleum lease can not be made for the land if the petroleum lease application has not been decided.

335Applications relating to exploration tenement and mining lease not held by same person

(1)This section applies if—
(a)a person to whom this division applies wishes to make an application to which this division applies for land in the area of each of the following—
(i)the coal or oil shale exploration tenement (the exploration tenement part);
(ii)a coal or oil shale mining lease (the mining lease part); and
(b)the exploration tenement and the mining lease are not held by the same person.

Note—

If the coal or oil shale exploration tenement and the coal or oil shale mining lease are held by the same person, see section 344(3).
(2)The person may make separate ATP-related applications for the exploration tenement part and the mining lease part.
(3)A separate application for the exploration tenement part, or the part of an application that relates to the exploration tenement part, must be decided under this division.
(4)A separate application for the mining lease part, or the part of an application that relates to the mining lease part, must be decided under part 3.

336Applications relating to other land

(1)This section applies if a person to whom this division applies wishes to make an application to which this division applies and the proposed application includes land (the other part) not in the area of a coal or oil shale mining tenement.
(2)The person may make a separate ATP-related application for the other part.
(3)A separate application for the other part, or the part of an application that relates to the other part, must be decided under chapter 2.

338Priority for earlier mining lease application or proposed application

Division 1, subdivision 5, applies for the petroleum lease application.

339Priority for deciding earlier petroleum lease application

If, before the making of the petroleum lease application—
(a)someone else has applied for a petroleum lease for the whole or part of the proposed area of the petroleum lease; and
(b)the other application complies with section 305;

the Minister must decide the other application first unless the petroleum lease applicant agrees otherwise.

340Right to grant if particular requirements met

(1)This section applies subject to section 339.
(2)If the application is an ATP-related application, the Minister must grant the petroleum lease if—
(a)the applicant is an eligible person; and
(b)the coal or oil shale exploration tenement holder has consented to the grant; and
(c)the requirements for grant have been complied with.
(3)If the application is not an ATP-related application, the Minister must grant the petroleum lease if—
(a)the applicant is an eligible person; and
(b)either—
(i)the applicant has been granted a coal or oil shale mining lease over the proposed area of the petroleum lease; or
(ii)any preference decision required under the Mineral Resources Act for the coal or oil shale mining lease application has been made and, under section 271A of that Act, a decision has been made to grant the applicant a coal or oil shale mining lease for the land; and

Note—

For when a preference decision under the Mineral Resources Act is required, see section 318BA of that Act.
(c)the Minister is satisfied—
(i)the requirements for grant, other than the requirement under section 121(1)(c), have been complied with; and
(ii)the conditions of the coal or oil shale exploration tenement have been substantially complied with.

Note—

If the area of the petroleum lease includes overlapping ATP land, the authority holder’s written agreement is needed to carry out any authorised activity under the lease other than an activity related to incidental coal seam gas. See part 5, division 1.

341Provisions of petroleum lease

(1)If the petroleum lease application is granted, section 123 applies as if the application were an ATP-related application.
(2)In deciding the provisions of the petroleum lease, the following matters must also be considered—
(a)the provisions recommended for the relevant mining lease;
(b)the development plan for the relevant mining lease;
(c)if the area of the petroleum lease will include land (overlapping ATP land) in the area of, or excluded land for, an authority to prospect or a 1923 Act ATP held by someone other than the petroleum lease holder—
(i)the legitimate business interests, rights and future development proposals of the authority to prospect holder; and
(ii)the likelihood of coordinated production of petroleum in relation to the overlapping ATP land being subject to an agreement under section 364(2).
(3)A relinquishment condition may be imposed.

Note—

See however section 368 (Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement).
(4)Subsection (3) does not limit any power under chapter 2 to impose conditions on the petroleum lease.

Division 3 Petroleum lease applications in response to Mineral Resources Act preference decision

342Additional ground for refusing application

(1)This section applies if—
(a)a petroleum lease application is made in response to an invitation given under the Mineral Resources Act, section 318BG; and
(b)the application is made within 6 months after the giving of the invitation.

Note—

If the application is not made within the 6 months, see the Mineral Resources Act, section 318BJ.
(2)The Minister may decide to refuse the application if satisfied the applicant has not, in a timely manner—
(a)taken any step in relation to the application required of the applicant under chapter 2 or this chapter; or
(b)satisfied the Minister about a matter that, under chapter 2 or this chapter, is required for the granting of the application.
(3)Subsection (2) does not limit another ground for refusing the application under chapter 2, this chapter or section 843A.

Part 3 Obtaining petroleum lease over land in area of coal or oil shale mining lease

Division 1 Exclusion of power to call for tenders

343Exclusion

The Minister can not make a call for tenders for a petroleum lease for land in the area of a coal or oil shale mining lease.

Division 2 Petroleum lease application other than by or jointly with coal or oil shale mining lease holder

344Application of div 2

(1)This division applies if a person wishes to make an application for a petroleum lease for all or part of land in the area of a coal or oil shale mining lease.
(2)However, this division does not apply if—
(a)the person is the mining lease holder; or
(b)the application is to be made jointly with the holder; or
(c)the application relates to land in the area of a coal or oil shale exploration tenement that is a mineral (f) pilot tenure.
(3)If—
(a)the land is also in the area of a coal or oil shale exploration tenement; and
(b)the same person holds the mining lease and the exploration tenement;

a reference in this division to the mining lease holder includes a reference to the exploration tenement holder.

Note—

If the coal or oil shale mining lease and the coal or oil shale exploration tenement are held by different persons, see section 307.

345Additional requirements for making application

(1)The petroleum lease application must—
(a)comply with the requirements under section 118 for making an ATP-related application; and
(b)include a CSG statement.

Note—

See section 306 (Content requirements for CSG statement).
(2)The proposed initial development plan required under section 118 must, as well as complying with the initial development plan requirements, also comply with part 6, division 1.

346Applications relating to other land

(1)This section applies if a person to whom this division applies wishes to make an application to which this division applies and the proposed application includes land (the other part) not in the area of a coal or oil shale mining lease.
(2)The person may make a separate petroleum lease application for the other part.
(3)A separate application for the other part, or the part of an application that relates to the other part, must be decided under chapter 2.

348Notice to coal or oil shale mining lease holder

The applicant must, within 10 business days after making the application, give the coal or oil shale mining lease holder a copy of the application, other than any part of the application that relates to the capability criteria.

Note—

See also part 8 (Confidentiality of information).

349Coal mining lease holder’s or oil shale mining lease holder’s obligation to negotiate

(1)The coal or oil shale mining lease holder must, after receiving the copy of the application, make reasonable attempts to reach a coordination arrangement with the applicant about the following matters that provides the best resource use outcome without significantly affecting the parties’ rights or interests—
(a)petroleum production under the proposed petroleum lease;
(b)coal or oil shale mining and any incidental coal seam gas mining under the mining lease.

Note—

For the extent to which coal seam gas production is permitted under the coal or oil shale mining lease, see the Mineral Resources Act, chapter 8, part 8, division 1.
(2)However, the obligation under subsection (1) applies only to the extent that a coordination arrangement is commercially and technically feasible for the mining lease holder.

350Additional requirements for grant

(1)The application may be granted only if—
(a)the applicant has negotiated, with the coal or oil shale mining lease holder, a proposed coordination arrangement (a relevant arrangement) about the following matters—
(i)petroleum production under the proposed petroleum lease;
(ii)coal or oil shale mining and any incidental coal seam gas under the mining lease; and
(b)the Minister has approved the relevant arrangement; and
(c)the applicant has made a safety management system for all operating plant on, or proposed to be on, the area of the proposed petroleum lease; and
(d)the mining lease holder has agreed to the safety management system and lodged a notice that the holder has agreed to the system.
(2)The Minister may decide to refuse the application if—
(a)the Minister is satisfied the applicant and the mining lease holder have, as required under section 349, made reasonable attempts to reach a relevant arrangement; and
(b)either—
(i)the mining lease holder has lodged a notice stating there are no reasonable prospects of a relevant arrangement being made; or
(ii)a relevant arrangement has not been lodged for approval by the Minister and the Minister considers the applicant and the mining lease holder have had a reasonable opportunity to make a relevant arrangement.

Division 3 Petroleum lease application by or jointly with coal or oil shale mining lease holder

351Application of div 3

This division applies if a person as follows wishes to apply for a petroleum lease for all or part of the land in the area of a coal or oil shale mining lease that is not a specific purpose mining lease—
(a)the coal or oil shale mining lease holder;
(b)a person who wishes to make the application jointly with the holder.

352Right to apply for petroleum lease

(1)The person may apply for a petroleum lease for all or part of the land.
(2)The area of the proposed petroleum lease need not comply with section 168(4) to (8).7).

353Requirements for making application

(1)The petroleum lease application must—
(a)comply with the requirements under section 118 for making an ATP-related application; and
(b)include a CSG statement.

Note—

See section 306 (Content requirements for CSG statement).
(2)The proposed initial development plan required under section 118 must, as well as complying with the initial development plan requirements, also comply with part 6, division 1.

354Applications relating to other land

(1)This section applies if a person to whom this division applies wishes to make an application to which this division applies and the proposed application includes land (the other part) not in the area of a coal or oil shale mining lease.
(2)The person may make a separate petroleum lease application for the other part.
(3)A separate application for the other part, or the part of an application that relates to the other part, must be decided under chapter 2.

356Right to grant if particular requirements met

The Minister must grant the petroleum lease if—
(a)the applicant is an eligible person; and
(b)the Minister is satisfied—
(i)the requirements for grant, other than the requirement under section 121(1)(c), have been complied with; and
(ii)the conditions of the coal or oil shale mining lease have been substantially complied with.

Note—

If the area of the petroleum lease includes overlapping ATP land, the authority holder’s written agreement is needed to carry out any authorised activity under the lease other than an activity related to incidental coal seam gas. See part 5, division 1.

357Provisions of petroleum lease

(1)Section 123 applies to the granting of the lease as if the petroleum lease application were an ATP-related application.
(2)In deciding the provisions of the petroleum lease, the following matters must also be considered—
(a)the conditions of the relevant mining lease;
(b)the development plan for the relevant mining lease;
(c)if the area of the petroleum lease will include overlapping ATP land—
(i)the legitimate business interests, rights and future development proposals of the authority to prospect holder; and
(ii)the likelihood of coordinated production of petroleum in relation to the overlapping ATP land being subject to an agreement under section 364(2).
(3)A relinquishment condition may be imposed.

Note—

See however section 368 (Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement).
(4)Subsection (3) does not limit any power under chapter 2 to impose conditions on the petroleum lease.

Part 4 Additional provisions for authorities to prospect and data acquisition authorities

Division 1 Grant of authority to prospect in area of coal or oil shale exploration tenement

358Provisions for authority to prospect

(1)The Mineral Resources Act does not limit or otherwise affect the power under this Act to grant an authority to prospect over land (the overlapping land) in the area of a coal or oil shale exploration tenement.
(2)However, an authorised activity for the authority to prospect can not be carried out on the overlapping land if—
(a)carrying it out adversely affects the carrying out of an authorised activity for the coal or oil shale exploration tenement; and
(b)the authorised activity for the coal or oil shale exploration tenement has already started.

Division 2 Restriction on authorised activities on coal mining lease or oil shale mining lease land

359Application of div 2

This division applies if land in the area of a coal or oil shale mining lease is—
(a)in the area of an authority to prospect; or
(b)subject to a data acquisition authority.

360Restriction

(1)An authorised activity for the authority may be carried out on the land only if—
(a)the mining lease holder has agreed in writing to the carrying out of the activity and to the safety management system of the authority holder; and
(b)a copy of the agreement has been lodged; and
(c)the agreement is still in force.

Note—

See also the Mineral Resources Act, section 403 (Offences regarding land subject to mining claim or mining lease).
(2)Subsection (1) does not apply, or ceases to apply, if the same person holds the authority and the mining lease.

Division 3 Exceptions to particular area provisions

361Exceptions

Section 98(4) and 101 do not apply for an authority to prospect if the petroleum lease is granted under part 2, division 2 or part 3, division 3.

Division 4 Conditions

362Notice to coal or oil shale exploration tenement holders and applicants

(1)This section applies if, when an authority to prospect is granted, land in the area of the authority is in the area of a coal or oil shale exploration tenement or a proposed area under a coal or oil shale exploration tenement application.
(2)It is a condition of the authority that its holder must, within 20 business days after the holder receives notice of the grant, give the tenement holder or the applicant notice stating—
(a)that the authority has been granted; and
(b)the authority holder’s name; and
(c)the term of the authority.

363Compliance with obligations under Mineral Resources Act

If an obligation under the Mineral Resources Act, section 318AW or 318DB, applies to an authority to prospect holder, it is a condition of the authority that the holder must comply with the obligation.

Part 4A Additional provisions if overlapping mineral (f) pilot tenure

Division 1 Preliminary

363ADefinitions for pt 4A

In this part—
MDLA 407 see section 363B(2).
mineral (f) pilot tenure see section 363B(1).
mineral (f) production tenure, for overlapping mineral (f) land, means a tenure that authorises the production of mineral (f) for the land.
mineral (f) tenure means a mineral (f) pilot tenure or a mineral (f) production tenure.
overlapping mineral (f) land see section 363B(1).

363BApplication of pt 4A

(1)This part applies to land (overlapping mineral (f) land) in the area of—
(a)mineral development licence 309, 374 or 385 (a mineral (f) pilot tenure); or
(b)any mineral (f) production tenure granted for land in the area of a mineral development licence mentioned in paragraph (a).
(2)This part also applies to land the subject of mineral development licence application 407 (MDLA 407).

363CRelationship with other provisions

(1)This part applies despite—
(a)other provisions of this chapter or the Mineral Resources Act; and
(b)the conditions or other provisions of an authority to prospect.
(2)If this part conflicts with another provision of this chapter or the Mineral Resources Act, this part prevails to the extent of the inconsistency.

Division 2 General suspension

363DSuspension of authorised activities for authority to prospect

(1)This section applies to an authorised activity for an authority to prospect in the area of overlapping mineral (f) land.
(2)Subject to subsection (3) and section 363E, any right to carry out the activity on the overlapping mineral (f) land is suspended.
(3)During the suspension, the authority holder may carry out an authorised activity for the authority on the overlapping mineral (f) land only if—
(a)the mineral (f) tenure holder for the land has agreed in writing to the carrying out of the activity; and
(b)a copy of the agreement has been lodged; and
(c)the agreement is still in force.
(4)The suspension continues until the mineral (f) tenure ends.

363EEntry rights for particular activities during suspension

(1)An authority to prospect holder to whom section 363D applies may, without an agreement mentioned in that section, enter the overlapping mineral (f) land to—
(a)carry out rehabilitation or environmental management required of the holder under any relevant environmental requirement under the Environmental Protection Act; or
(b)carry out low impact environmental monitoring; or

Examples—

the monitoring of air, ecology, fauna, hydrology, soil or water
(c)move, remove or maintain equipment, machinery or plant; or
(d)carry out improvement restoration for the authority to prospect; or
(e)carry out care and maintenance of disturbed areas; or
(f)carry out low impact track construction or maintenance; or
(g)use or maintain infrastructure put in place on the land before the commencement of this section; or
(h)put in place or maintain infrastructure for a purpose, or to do an activity, mentioned in paragraphs (d) to (g); or
(i)construct pipelines for transporting water in the area of mineral development licence 374 for infrastructure mentioned in paragraph (g), if—
(i)the construction is an authorised activity for the authority to prospect; and
(ii)the mineral (f) tenure holder for the land has agreed in writing to the location of the pipelines; and
(iii)a copy of the agreement has been lodged; and
(iv)the agreement is still in force.
(2)Subsection (1) is subject to section 363F.
(3)The authority holder’s rights and obligations under the rest of this Act continue to apply for an entry and the carrying out of an activity authorised under subsection (1).
(4)In this section—
improvement restoration, for an authority to prospect, means the repair of any damage caused by an activity under the authority to all pre-existing improvements on, or attached to, the land subject to the authority by—
(a)restoring them to the same, or substantially the same, condition they were in before the damage happened; or
(b)replacing them with another improvement in the condition mentioned in paragraph (a).
rest of this Act means the provisions of this Act other than this part.

363FNotice of entry under s 363E

Before entering land under section 363E(1), an authority to prospect holder must, at least 10 business days before the entry, give the mineral (f) tenure holder for the land a notice stating the following—
(a)the area of the overlapping mineral (f) land proposed to be entered;
(b)the period during which the land will be entered (the entry period);
(c)the activities proposed to be carried out on the land under section 363E(1);
(d)when and where the activities are proposed to be carried out.

363GMinisterial power to suspend authority to prospect requirements

(1)This section applies if the Minister is satisfied that, because of section 363D, the holder of an authority to prospect is not able to, or will not be able to, carry out all or any authorised activities for the authority.
(2)The Minister may, by giving notice to the authority holder, decide to suspend or limit any of the performance requirements for the authority to prospect, for all or part of the term of the authority.
(3)During the suspension or limitation, the obligation does not apply to the extent of the suspension or limitation.
(4)In this section—
performance requirement means an obligation under this Act or a condition of an authority to prospect, and includes an obligation about relinquishment.

Division 3 Resolving disputes

363HNegotiation and request to Minister

(1)This section applies if there is a dispute about any of the following—
(a)a right to carry out an authorised activity under section 363D;
(b)a right to enter overlapping mineral (f) land under section 363E;
(c)any request made by a mineral (f) tenure holder to an authority to prospect holder to remove or modify infrastructure on overlapping mineral (f) land, if the infrastructure was put in place on the land under—
(i)an agreement entered into under section 363D(3); or
(ii)section 363E(1).
(2)The parties must use all reasonable endeavours to attempt to resolve the dispute.
(3)After complying with subsection (2), either of the parties may, by a notice in the approved form, ask the Minister to decide whether the entry is allowed or the activity may be carried out.
(4)Before making a decision, the Minister must give the parties an opportunity to make submissions about the request within a reasonable period.

Note—

For other relevant provisions about making a submission, see section 851AA.
(5)Also before making the decision, the Minister may refer the dispute under section 363I to the Land Court for it to make recommendations about deciding the dispute.

363IReference to Land Court

(1)A referral by the Minister under section 363H(5) must be made by filing a notice in the approved form with the registrar of the Land Court.
(2)The referral starts a proceeding before the Land Court for it to make the recommendations.
(3)The parties to the proceeding are the mineral (f) tenure holder and the authority to prospect holder for the overlapping mineral (f) land to which the dispute relates.

363JDecision by Minister

(1)The Minister must, after considering the following, decide the matter and give the parties notice of the decision—
(a)any submissions made by the parties under section 363H(4);
(b)any recommendations by the Land Court.
(2)In making a decision, the Minister may also consider the public interest.
(3)The Minister’s decision binds the parties.
(4)The Minister may impose conditions on any decision that the entry is allowed or the authorised activity may be carried out.

Division 4 Obtaining petroleum lease if overlapping mineral (f) land or land in area of MDLA 407

363KAdditional provision about area of petroleum lease

(1)This section applies if—
(a)a person who, under section 117, may make an ATP-related application for land that includes any of the following makes that application—
(i)land that is overlapping mineral (f) land;
(ii)land in the area of MDLA 407; and
(b)the Minister decides to grant the petroleum lease.
(2)Without limiting section 168, the area of the petroleum lease can not include—
(a)the land that is overlapping mineral (f) land; or
(b)land in the area of MDLA 407.
(3)The Minister may, in the lease, describe the exclusion of the land under subsection (2) in a way the Minister considers appropriate.

363LMinister may add land to petroleum lease if mineral (f) tenure ends

(1)This section applies if—
(a)land is not included in a petroleum lease because of section 363K(2); and
(b)if the land is—
(i)overlapping mineral (f) land—the mineral (f) tenure for the land ends; and
(ii)in the area of MDLA 407—
(A)the mineral (f) pilot tenure for mineral development licence 309 ends; and
(B)a mineral (f) production tenure has not been granted for land in the mineral development licence’s area.
(2)The Minister may amend the petroleum lease by adding the land to the lease area if—
(a)the lease as amended complies with section 168; and
(b)the lease holder consents.
(3)The Minister may amend the provisions of the lease in a way that reflects the inclusion of the land.
(4)Also, the Minister may give the lease holder a notice—
(a)withdrawing, from a stated day, the approval of the development plan for the lease; and
(b)directing the holder to lodge a proposed later development plan for the lease that—
(i)complies with the later development plan requirements; and
(ii)changes the development plan for the lease to reflect the inclusion of the land.
(5)The amended provisions of the lease or the proposed later development plan must not be—
(a)inconsistent with the mandatory conditions of petroleum leases; or
(b)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the lease.

Part 5 Additional provisions for petroleum leases

Division 1 Restriction on authorised activities for particular petroleum leases

364Restriction on authorised activities on overlapping ATP land

(1)This section applies if—
(a)the area of a petroleum lease includes overlapping ATP land; and

Note—

Overlapping ATP land includes land in the area of the lease that is excluded land for the authority to prospect. See sections 341(2)(c) and 357(2)(c).
(b)the petroleum lease was, under section 340 or 356, granted to someone other than the relevant authority to prospect holder.
(2)The petroleum lease holder may carry out an authorised activity for the petroleum lease on the overlapping ATP land only if—
(a)the authority to prospect holder has agreed in writing to the carrying out of the activity and—
(i)a copy of the agreement has been lodged; and
(ii)the agreement is still in force; or
(b)the activity relates to incidental coal seam gas mined or to be mined within the mine working envelope.

Note—

See also section 934 (Substituted restriction for petroleum leases relating to mineral hydrocarbon mining leases).
(3)In this section—
mine working envelope means land that—
(a)is in the area of a coal mining lease or an oil shale mining lease the area of which includes the overlapping ATP land; and
(b)covers any of the following or is needed for post-production activities—
(i)past mine workings;
(ii)current mine workings;
(iii)mine workings scheduled to be mined within the next 5 years;
(iv)authorised activities for the mining lease associated with the processing, transportation, storage and use of the incidental coal seam gas produced.

Division 2 Conditions

365Continuing requirement for coordination arrangement for particular petroleum leases

(1)This section applies if—
(a)a petroleum lease is granted over land in the area of a coal or oil shale mining lease and the application for the petroleum lease was not made by or jointly with the mining lease holder; or
(b)a petroleum lease holder is a party to a coordination arrangement mentioned in section 379.
(2)It is a condition of the petroleum lease that—
(a)its holder must continue to be party to a relevant coordination arrangement; and
(b)authorised activities for the petroleum lease must not be carried out if there is no relevant coordination arrangement.

Note—

For subleases under a coordination arrangement, see section 238.
(3)In this section—
relevant coordination arrangement means a coordination arrangement with the mining lease holder about—
(a)petroleum production under the petroleum lease; and
(b)coal or oil shale mining and any incidental coal seam gas mining under the mining lease.

366Compliance with obligation to negotiate with coal or oil shale mining lease applicant

If the obligation under the Mineral Resources Act, section 318CA, applies to a petroleum lease holder, it is a condition of the lease that the holder must comply with the obligation.

367Requirement for giving of copy of relinquishment report

(1)This section applies if—
(a)a petroleum lease holder has, under section 545, given a report about a relinquishment of part of the area of the lease; and
(b)immediately before the relinquishment, the part included land in the area of a coal or oil shale exploration tenement.
(2)The petroleum lease holder must give a copy of the report to—
(a)the coal or oil shale exploration tenement holder; and
(b)anyone else who has applied for a mining lease for the part.

Maximum penalty—150 penalty units.

368Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement

If—
(a)a petroleum lease contains a relinquishment condition; and
(b)all or part of the area of the lease ceases to be in the area of a coal or oil shale exploration tenement (the relevant land);

the condition ceases to apply for the relevant land.

Division 3 Amendment of relinquishment condition by application

Subdivision 1 Preliminary

369Application of div 3

This division applies if a petroleum lease contains a relinquishment condition and all or part of the area of the lease is in the area of a coal or oil shale exploration tenement.

Subdivision 2 Making application to amend relinquishment condition

370Conditions for applying to amend

(1)The petroleum lease holder may apply for the Minister to amend the condition if the applicant has, before making the application—
(a)made reasonable attempts to consult with the coal or oil shale exploration tenement holder about—
(i)the proposed amendment; and
(ii)a proposed later development plan for the lease; and
(b)changed the proposed amendment and the proposed later development plan to give effect to any reasonable proposal by the tenement holder that will optimise—
(i)petroleum production under the amended petroleum lease; and
(ii)coal, oil shale or incidental coal seam gas mining under any future mining lease over the land.
(2)However, subsection (1)(b) applies only to the extent the provisions are commercially and technically feasible for the applicant.

371Obligation of coal or oil shale exploration tenement holder to negotiate

The coal or oil shale exploration tenement holder must, if asked by the petroleum lease holder, make reasonable attempts to reach an agreement with the petroleum lease holder about the matters mentioned in section 370(1)(b) that provides the best resource use outcome without significantly affecting the parties’ rights or interests.

Note—

See also part 8 (Confidentiality of information).

372Requirements for making application

(1)The application must—
(a)be in the approved form; and
(b)state whether or not the development plan for the petroleum lease has been complied with; and
(c)if the development plan for the lease has not been complied with—state details of, and the reasons for, each noncompliance; and
(d)include a CSG statement; and
(e)include a proposed later development plan for the lease as amended under section 370; and
(f)include a statement about each of the following—
(i)the details of the consultation carried out under section 370(1)(a);
(ii)the results of the consultation;
(iii)whether the proposed development plan includes all provisions proposed by the coal or oil shale exploration tenement holder under section 370(1)(b);
(iv)if the proposed development plan does not include a provision proposed by the tenement holder—why it was not included;
(v)the applicant’s assessment of the potential for the applicant and the tenement holder to make a coordination arrangement about—
(A)petroleum production under the amended petroleum lease; and
(B)coal, oil shale or incidental coal seam gas mining under any future mining lease over the land that may be granted to the tenement holder; and
(g)be accompanied by the fee prescribed under a regulation.
(2)However, the CSG statement need not include a proposed safety management system.

373Notice of application

The applicant must immediately after making the application give the coal or oil shale exploration tenement holder a copy of the application.

Subdivision 3 Deciding amendment application

374Submissions by coal or oil shale exploration tenement holder

(1)The coal or oil shale exploration tenement holder may lodge submissions about the application.
(2)However, the submissions may be lodged only within 20 business days after the holder is, under section 373, given a copy of the application.
(3)The submissions may include—
(a)information about all or any of the following—
(i)exploration carried out under the tenement;
(ii)the results of the exploration;
(iii)the prospects for future coal or oil shale mining or incidental coal seam gas mining from the land; or
(b)a proposal by the tenement holder for the development of coal or oil shale in the land; or
(c)information relevant to the CSG assessment criteria.
(4)The holder must give the applicant a copy of the submissions.
(5)In deciding the application, regard must be had to the submissions.

375Minister may require further negotiation

(1)The Minister may, by notice, require the applicant to conduct negotiations with the coal or oil shale exploration tenement holder with a view to making changes of a type mentioned in section 370(1)(b).
(2)The applicant must use all reasonable attempts to comply with the requirement.
(3)If the Minister is reasonably satisfied the applicant has not complied with the requirement the Minister may decide to refuse the application.

376Deciding amendment application

(1)Before deciding to grant the application, the Minister must decide whether to approve the applicant’s proposed later development plan for the petroleum lease.
(2)The application can not be granted unless the proposed plan has been approved.
(3)Chapter 2, part 2, division 4 applies for deciding whether to approve the proposed plan.

Note—

See also part 6, division 2 (Later development plans).
(4)The matters that must be considered in deciding the application include each of the following—
(a)the CSG assessment criteria;
(b)whether the applicant has taken all reasonable steps to comply with the relinquishment condition;
(c)the effect of any approval of later development plans for the petroleum lease;
(d)any submissions under section 374 lodged within the period mentioned in section 374(2).
(5)After the application has been decided, the applicant and the coal or oil shale exploration tenement holder must be given notice of the decision.

Division 4 Restriction on amendment of other conditions

377Interests of relevant coal or oil shale mining tenement holder to be considered

A condition of a petroleum lease must not be amended under section 848 unless the interests of any relevant coal or oil shale mining tenement holder have been considered.

Division 5 Renewals

378Applied provisions for making and deciding renewal application

(1)The adopted provisions apply for a renewal application for a petroleum lease—
(a)as if the petroleum lease holder had lodged a proposed later development plan for the Minister to approve; and
(b)as if a reference in the adopted provisions—
(i)to the application were a reference to the renewal application; and
(ii)to a petroleum lease were a reference to the renewed petroleum lease; and
(iii)to a proposed initial development plan, an initial development plan, a proposed development plan or a development plan were a reference to a proposed later development plan or a later development plan; and
(iv)in section 314(5), to the ATP-related application were a reference to the conditions of the renewed lease.
(2)In this section—
adopted provisions means—
(a)if all or part of the land in the area of the petroleum lease is in the area of a coal or oil shale exploration tenement—part 2, division 1, subdivisions 2 and 4; or
(b)if all or part of the land in the area of the petroleum lease is in the area of a coal or oil shale mining lease and the coal or oil shale mining lease holder is not a holder of the petroleum lease—part 3, division 2 (other than section 346); or
(c)if all or part of the land in the area of the petroleum lease is in the area of a coal or oil shale mining lease and the coal or oil shale mining lease holder holds the petroleum lease—part 3, division 3 (other than section 354).

Division 6 Restrictions on particular transfers

379Requirement for coordination arrangement to transfer petroleum lease in tenure area of mining lease

(1)This section applies, despite the Common Provisions Act, chapter 2, part 1, if land is in the area of a petroleum lease and a coal or oil shale mining lease.
(2)A transfer of the petroleum lease must not be approved for registration under the Common Provisions Act, section 19 unless the proposed transferee and the mining lease holder are parties to a coordination arrangement about—
(a)petroleum production under the petroleum lease; and
(b)coal or oil shale mining and any incidental coal seam gas mining under the mining lease.

Part 6 Additional provisions for development plans

Division 1 Initial development plans

Subdivision 1 Additional requirements for proposed initial development plan

380Operation of sdiv 1

This subdivision provides for additional requirements for a proposed initial development plan for a petroleum lease applied for under chapter 2 or this chapter.

381Statement about interests of coal or oil shale mining tenement holder

The proposed plan must include a statement of how the effects on, and the interests of, any relevant overlapping or adjacent coal or oil shale mining tenement holder have, or have not, been considered, having regard to—
(a)the main purposes of this chapter; and
(b)the CSG assessment criteria.

382Requirement to optimise petroleum production

(1)The activities provided for under the proposed plan must seek to optimise petroleum production in a safe and efficient way.
(2)However, the activities must not adversely affect the future safe and efficient mining of coal where it is commercially and technically feasible not to do so.

383Consistency with coal or oil shale mining lease development plan and relevant coordination arrangement

If all or part of the area of the proposed petroleum lease is in the area of a coal or oil shale mining lease (the relevant land), the proposed plan must, to the extent it applies to the relevant land, be consistent with—
(a)the development plan for the mining lease; and
(b)any coordination arrangement relating to the relevant land.

Subdivision 2 Other additional provisions

383AApplication of sdiv 2

This subdivision applies if—
(a)the Minister is considering whether to approve a proposed initial development plan for a proposed petroleum lease; and
(b)the area of the proposed lease includes all or part of the area of a coal or oil shale mining tenement.

383BAdditional criteria for approval

The matters that must be considered include the CSG assessment criteria.

383CRestriction on approval

The proposed plan can not be approved unless the applicant for the proposed lease has complied with the obligations under section 310(1)(b).

Division 2 Later development plans

Subdivision 1 Additional requirements for proposed later development plans

383DAdditional requirements under div 1, sdiv 1 apply

A proposed later development plan for a petroleum lease must comply with the additional requirements under sections 381 to 383 for a proposed initial development plan for a petroleum lease.

Subdivision 2 Other additional provisions

384Additional criteria

(1)This section applies if—
(a)the Minister is considering whether to approve a proposed later development plan for a petroleum lease; and
(b)the area of the petroleum lease includes all or part of the area of a coal mining tenement or oil shale mining tenement.
(2)The matters that must be considered also include—
(a)the CSG assessment criteria; and
(b)the effect of any approval of the proposed plan on any relinquishment condition for the lease.

Note—

See also section 148 (Power to require relinquishment).

Part 7 Additional provisions for safety management system

385Grant of petroleum lease does not affect obligation to make safety management system

(1)This section applies if a CSG statement accompanies an application for a petroleum lease, as required under this chapter.
(2)The deciding of the application or the grant of the lease—
(a)does not affect the obligation under section 674 to make a safety management system for any operating plant in the area of the lease; and
(b)is not, of itself, evidence that a safety management system, or purported safety management system, for an operating plant on the area of the petroleum lease complies with section 675 or 705C.

386Requirement for joint interaction management plan

(1)This section applies if—
(a)a person (the operator) proposes to be an operator of operating plant in the area of a petroleum tenure; and
(b)activities carried out, or proposed to be carried out, at the plant may adversely affect the safe mining of coal in the area of a coal or oil shale mining tenement.
(2)Chapter 9, part 4, division 5, subdivision 1 applies to the operator as if—
(a)a reference in the provisions to the operator of an authorised activities operating plant were a reference to the operator mentioned in subsection (1)(a); and
(b)a reference in the provisions to the overlapping area were a reference to the area of the coal or oil shale mining tenement mentioned in subsection (1)(b); and
(c)a reference in the provisions to the site senior executive were a reference to the site senior executive for the coal or oil shale mining tenement mentioned in subsection (1)(b).

Part 8 Confidentiality of information

390Application of pt 8

(1)This part applies if a tenure holder or a person who has applied for a tenure (the information-giver) gives another tenure holder or a person who has applied for a tenure (the recipient) information—
(a)that this chapter requires the information-giver to give the recipient, including, for example, information given to comply with section 313(a); or
(b)for the purposes of this chapter.
(2)However, this part applies subject to any agreement between the information-giver and the recipient about the information or its use.
(3)In this section—
information means information given verbally or in writing.
tenure means a petroleum tenure or a coal or oil shale mining tenement.

391Confidentiality obligations

(1)The recipient must not disclose the information to anyone else, unless—
(a)the information is publicly available; or
(b)the disclosure is—
(i)to someone whom the recipient has authorised to carry out the authorised activities for the recipient’s petroleum tenure or coal or oil shale mining tenement; or
(ii)made with the information-giver’s consent; or
(iii)expressly permitted or required under this or another Act; or
(iv)to the Minister.
(2)The recipient may use the information only for the purpose for which it is given.

392Civil remedies

If the recipient does not comply with section 391, a court of competent jurisdiction may order the recipient to pay the information-giver all or any of the following—
(a)compensation for any loss the information-giver incurred because of the failure to comply with the section;
(b)the amount of any commercial gain the recipient made because of the failure to comply with the section.

Chapter 3A Provisions for geothermal tenures and GHG authorities

Part 1 Preliminary

392AA Relationship with chs 2 and 3

(1)Requirements and restrictions under this chapter relating to the granting of a petroleum tenure apply as well as any relevant requirements under chapter 2 or 3.
(2)If this chapter imposes a requirement for or a restriction on the granting of a petroleum tenure, it can not be granted if the restriction applies or if the requirement has not been complied with.
(3)If a provision of this chapter conflicts with a provision of chapter 2 the provision of this chapter prevails to the extent of the inconsistency.
(4)This chapter does not otherwise limit or affect the requirements of chapter 2.
(5)Subsection (6) applies if this chapter imposes a requirement for or a restriction on the carrying out of an authorised activity for a petroleum tenure.
(6)Despite chapter 2, the activity is not an authorised activity for the petroleum tenure while the restriction applies or if the requirement has not been complied with.

392AB What is an overlapping authority (geothermal or GHG)

(1)An overlapping authority (geothermal or GHG), for a petroleum authority, is any geothermal tenure or GHG authority all or part of the area of which is in the petroleum authority’s area.
(2)An overlapping authority (geothermal or GHG), for a proposed petroleum authority, is a geothermal tenure or GHG authority (the existing authority) all or part of the area of which will, if the proposed petroleum authority is granted, be in the existing authority’s area.

392AC General provision about petroleum authorities for land subject to geothermal tenure or GHG authority

Subject to the other provisions of this chapter and chapters 2 and 3, the Geothermal Act, GHG storage Act, a geothermal tenure or a GHG authority does not limit or otherwise affect—
(a)the power under this Act to grant a petroleum authority; or
(b)the carrying out of authorised activities for a petroleum authority.

Part 2 Obtaining petroleum lease if overlapping tenure

Division 1 Preliminary

392AD Application of pt 2

This part applies if—
(a)a person (the applicant) wishes to make a petroleum lease application; and
(b)there is an overlapping authority (geothermal or GHG) for the proposed petroleum lease; and
(c)the overlapping authority (geothermal or GHG) is a geothermal tenure or GHG tenure (the overlapping tenure).

Division 2 Requirements for application

392AE Requirements for making application

(1)The petroleum lease application must include—
(a)a statement complying with section 392AF (an information statement); and
(b)other information addressing the matters mentioned in subsection (2) (the assessment criteria), other than about attempts to consult with the overlapping tenure holder.
(2)The assessment criteria are—
(a)compliance with the provisions of chapter 9; and
(b)the additional requirements under part 6 for proposed initial development plans; and
(c)the potential for the parties to make the following for the proposed petroleum lease—
(i)for a geothermal tenure—a geothermal coordination arrangement;
(ii)for a GHG tenure—a GHG coordination arrangement; and
(d)the economic and technical viability of the concurrent or coordinated carrying out of authorised activities for the proposed petroleum lease and the overlapping tenure; and
(e)the public interest.

392AF Content requirements for information statement

The information statement must—
(a)assess—
(i)the likely effect of proposed authorised activities for the proposed petroleum lease on the future carrying out of authorised activities for the overlapping tenure; and
(ii)the technical and commercial feasibility of coordinating the proposed authorised activities and the future carrying out of the authorised activities; and
(b)include proposals for the minimisation of potential adverse effects on possible future carrying out of authorised activities for the overlapping tenure.

Division 3 Consultation provisions

392AG Applicant’s information obligation

(1)The applicant must within 10 business days after making the petroleum lease application give the overlapping tenure holder a copy of the application other than any part of the application relating to the capability criteria.
(2)If the Minister is reasonably satisfied the applicant has not complied with an obligation under this division, the petroleum lease application may be refused.

392AH Submissions by overlapping tenure holder

(1)The overlapping tenure holder may lodge submissions about the petroleum lease application (holder submissions).
(2)However, holder submissions may be lodged only within 4 months after the holder is given a copy of the application.
(3)Holder submissions may do all or any of the following—
(a)state that the holder does not object to the granting of the proposed petroleum lease;
(b)if the overlapping tenure is a geothermal permit or GHG permit—
(i)state that the holder does not wish any priority for the carrying out of authorised activities for any future lease that may arise from the permit (overlapping authority priority); or
(ii)include a proposal by the overlapping tenure holder for the activity for which overlapping authority priority is sought;
(c)include information about authorised activities carried out under the overlapping tenure;
(d)include information relevant to the assessment criteria;
(e)propose reasonable provisions for the safety management system for the proposed petroleum lease.
(4)The holder must give the applicant a copy of the holder submissions.

Division 4 Resource management decision if overlapping permit

392AI Application of div 4

(1)This division applies if—
(a)the overlapping tenure is a geothermal permit or GHG permit (the overlapping permit); and
(b)the overlapping permit holder has lodged holder submissions within 4 months after the holder was given a copy of the application; and
(c)the submissions state that the holder wishes overlapping authority priority.
(2)However, this division does not apply if, under the Geothermal Act, chapter 5 or the GHG storage Act, chapter 4, overlapping authority priority has been given for any of the relevant land.

Note—

If this division does not apply, the petroleum lease application proceeds immediately to decision under chapter 2 as affected by division 7.

392AJ Resource management decision

The Minister must make a decision (the resource management decision) about whether to—
(a)grant the petroleum lease application; or
(b)give any overlapping authority priority for all or part of the relevant land; or
(c)not to grant the petroleum lease application and not to give any overlapping authority priority for any of the relevant land.

392AK Criteria for decision

The Minister must consider the following in making the resource management decision—
(a)the information statement;
(b)the assessment criteria;
(c)the holder submissions;
(d)the public interest.

392AL Restrictions on giving overlapping authority priority

Overlapping authority priority may be recommended or given only if it is considered—
(a)either—
(i)it is unlikely the applicant and the overlapping permit holder will enter into—
(A)for a geothermal permit—a geothermal coordination arrangement; or
(B)for a GHG permit—a GHG coordination arrangement; or
(ii)an arrangement mentioned in subparagraph (i) for the proposed petroleum lease is not commercially or technically feasible; and
(b)the public interest would be best served by not granting a petroleum lease to the applicant first.

Division 5 Process if resource management decision is to give overlapping authority priority

392AM Application of div 5

This division applies only if, under division 4, a resource management decision is required and the decision is to give overlapping authority priority for all or part of the relevant land.

392AN Notice to applicant and overlapping permit holder

(1)The chief executive must give the applicant and the overlapping permit holder notice of the resource management decision.
(2)The notice must invite the overlapping permit holder to, within 6 months after the giving of the notice (the overlapping authority application period), apply for a lease as follows (an overlapping lease) for the land mentioned in subsection (3)—
(a)if the overlapping permit is a geothermal permit—a geothermal lease;
(b)if the overlapping permit is a GHG permit—a GHG lease.
(3)For subsection (2), the land is—
(a)if the overlapping authority priority is for all of the land—for all of the land; or
(b)if the priority is for part of the land—for that part.

392AO Overlapping lease application for all of the land

(1)This section applies if—
(a)the overlapping authority priority is for all of the land; and
(b)within the overlapping authority application period the overlapping permit holder applies for an overlapping lease for all of the land.
(2)A further step can not be taken to decide the petroleum lease application until after the overlapping lease application has been decided.

Note—

The Geothermal Act, chapter 5, part 5 and the GHG storage Act, chapter 4, part 5 provide for refusal of the overlapping lease application if it is not pursued in a timely manner.
(3)If the decision on the overlapping lease application is to grant an overlapping lease for all of the land, the petroleum lease application is taken to have lapsed.

392AP Overlapping lease application for part of the land

(1)This section applies if the overlapping permit holder applies for an overlapping lease for part of the land within the overlapping authority application period.
(2)The person who made the petroleum lease application may amend it so that a petroleum lease is only sought for all or part of the rest of the land.
(3)Unless the amendment is made, a further step can not be taken to decide the petroleum lease application until after the overlapping lease application has been decided.
(4)If—
(a)the amendment has not been made; and
(b)the decision on the overlapping lease application is to grant an overlapping lease for part of the land;

the person who made the petroleum lease application may amend it so that a petroleum lease is only sought for all or part of the rest of the land.

Note—

If the petroleum lease application is not amended, see section 392AT (Application may be refused if no reasonable prospects of future geothermal or GHG coordination arrangement).

392AQ No overlapping lease application

If the overlapping permit holder does not apply for an overlapping lease for any of the land within the overlapping authority application period, the petroleum lease application may be decided.

Division 6 Resource management decision not to grant and not to give priority

392AR Lapsing of application

The petroleum lease application is taken to have lapsed if—
(a)under division 4, a resource management decision is required; and
(b)the decision was not to grant the petroleum lease application and not to give any overlapping authority priority for any of the relevant land.

Division 7 Deciding application

392AS Application of div 7

This division applies if—
(a)the overlapping tenure holder has not lodged holder submissions within 4 months after the holder was given a copy of the application (the submission period) or at all; or
(b)the overlapping tenure holder has lodged holder submissions within the submission period stating that the holder does not wish any overlapping authority priority; or
(c)under division 4, a resource management decision is required and—
(i)the resource management decision is not to give overlapping authority priority for any of the relevant land; or
(ii)the resource management decision is to give overlapping authority priority for all or part of the relevant land and after division 5 has been complied with the Minister decides to grant a petroleum lease for the land.

392AT Application may be refused if no reasonable prospects of future geothermal or GHG coordination arrangement

The Minister may decide to refuse the petroleum lease application if—
(a)the Minister is satisfied the applicant and the overlapping tenure holder have made reasonable attempts to reach the following (a relevant arrangement)—
(i)if the overlapping tenure is a geothermal permit—a proposed geothermal coordination arrangement;
(ii)if the overlapping tenure is a GHG permit—a proposed GHG coordination arrangement; and
(b)either—
(i)the overlapping tenure holder has lodged a notice stating there are no reasonable prospects of a relevant arrangement being made; or
(ii)a relevant arrangement has not been lodged for approval by the Minister and the Minister considers the applicant and the overlapping tenure holder have had a reasonable opportunity to make a relevant arrangement.

392AU Additional criteria for deciding provisions of petroleum lease

In deciding the provisions of the petroleum lease the Minister must consider all of the following—
(a)the information statement;
(b)the assessment criteria;
(c)any holder submissions;
(d)the effect of the petroleum lease on the safe and efficient carrying out of authorised activities for the overlapping tenure;
(e)for an overlapping permit—the effect of the petroleum lease on the safe and efficient carrying out of authorised activities for any future lease that may arise from the permit.

392AV Publication of outcome of application

(1)After the Minister decides whether or not to grant the petroleum lease, the chief executive must publish a notice about the outcome of the petroleum lease application in or on at least 1 of the following—
(a)the gazette;
(b)the department’s website;
(c)another publication the chief executive considers appropriate.
(2)The notice must state—
(a)the decision; and
(b)if the decision was to grant the petroleum lease—all the petroleum lease’s conditions other than the mandatory conditions; and
(c)if, under division 4, a resource management decision is required and the decision was to give overlapping authority priority for all or part of the land—the decision, and the reasons for it.
(3)However, if the chief executive considers information in a condition is commercial-in-confidence, the chief executive may, instead of publishing the condition, publish a statement about its intent.

Part 3 Priority to particular geothermal or GHG lease applications

392AW Earlier geothermal or GHG lease application

If—
(a)a petroleum lease application is made; and
(b)before the making of that application, an application (the other application) was made for a geothermal lease or GHG lease (the other proposed lease) but not decided; and
(c)the other application had not been decided before the making of the petroleum lease application; and
(d)the other proposed lease would, if it were granted, be an overlapping authority for the proposed petroleum lease;

the petroleum lease application must not be decided until the other application has been decided.

392AX Proposed geothermal or GHG lease for which EIS approval given

(1)This section applies for a petroleum lease application if—
(a)before the making of the application, an approval under the Environmental Protection Act, chapter 3, part 2 was granted for the voluntary preparation of an EIS; and
(b)the EIS is for a project that is, or includes, a proposed geothermal lease or GHG lease (the proposed lease) for land the subject of the application.
(2)The application must not be decided until—
(a)if no application is made for the proposed lease within 1 year after the granting of the approval—the end of that year; or
(b)if an application is made for the proposed lease within that year—that application is decided.

392AY Proposed geothermal or GHG lease declared a coordinated project

(1)This section applies for a petroleum lease application if—
(a)before the making of the application, a coordinated project was declared; and
(b)the project is, or includes, a proposed geothermal lease or GHG lease (the proposed lease) for land the subject of the application.
(2)The application must not be decided until—
(a)if no application is made for the proposed lease within 1 year after the making of the declaration—the end of that year; or
(b)if an application is made for the proposed lease within that year—that application is decided.

Part 4 Petroleum lease applications in response to invitation under Geothermal Act or GHG storage Act

392AZ Application of pt 4

This part applies if—
(a)a petroleum lease application is made in response to an invitation given because of a resource management decision under the Geothermal Act or the GHG storage Act; and
(b)the application is made within 6 months after the giving of the invitation.

392BA Additional ground for refusing application

(1)The Minister may decide to refuse the application if satisfied the applicant has not in a timely manner—
(a)taken any step for the application required of the applicant under chapter 2 or 3 or this chapter; or
(b)satisfied the Minister about a matter that under chapter 2 or 3 or this chapter is required for the granting of the application.
(2)Subsection (1) does not limit section 843A.

Part 5 Additional provisions for petroleum authorities

Division 1 Restrictions on authorised activities for particular petroleum authorities

392BB Overlapping geothermal or GHG lease

(1)This section applies if land in the area of any of the following petroleum authorities is in the area of a geothermal lease or GHG lease—
(a)an authority to prospect;
(b)a data acquisition authority;
(c)a water monitoring authority.
(2)However, this section does not apply if the same person holds the petroleum authority and the geothermal lease or GHG lease.
(3)An authorised activity for the petroleum authority may be carried out on the land only if—
(a)the geothermal lease or GHG lease holder has not, in the way required under subsection (4), objected to—
(i)the carrying out of the activity; and
(ii)if chapter 9 requires a safety management system for the petroleum authority—the safety management system; or
(b)if an objection under paragraph (a) has been made—the Minister has, under section 392BD, decided the authorised activity may be carried out.

Note—

For notice of authorised activities, see section 392BF.
(4)The objection must be written, given to the petroleum authority holder and lodged.

392BC Overlapping geothermal permit or particular GHG authorities

(1)This section applies if land in the area of any of the following petroleum authorities is in the area of a geothermal permit or a GHG authority other than a GHG lease—
(a)an authority to prospect;
(b)a data acquisition authority;
(c)a water monitoring authority.
(2)An authorised activity for the petroleum authority can not be carried out on the land if—
(a)carrying out the activity adversely affects the carrying out of an authorised activity for the geothermal permit or GHG authority; and
(b)the authorised activity for the geothermal permit or GHG authority has already started.

392BD Resolving disputes

(1)This section applies if, under section 392BB, a geothermal lease or GHG lease holder has objected to the carrying out of an authorised activity by a petroleum authority holder.
(2)This section also applies if there is a dispute between a petroleum authority holder and a geothermal permit or GHG authority holder about whether an authorised activity for the petroleum authority can be carried out under section 392BC.
(3)Either of the parties may, by a notice in the approved form, ask the Minister to decide—
(a)for section 392BB—whether the authorised activity may be carried out under that section; or
(b)for section 392BC—whether the authorised activity may be carried out under that section.
(4)Before making the decision, the Minister must give the parties a reasonable opportunity to make submissions about the request within a reasonable period.
(5)The Minister must, after complying with subsection (4) and considering any submission made under that subsection, decide the matter and give the parties notice of the decision.
(6)The Minister’s decision binds the parties.
(7)If the request is about a matter mentioned in subsection (1), the Minister may impose conditions on any decision that the authorised activity may be carried out.
(8)In this section—
parties means—
(a)for a request about a matter mentioned in subsection (1)—the petroleum authority holder and the geothermal lease or GHG lease holder; or
(b)for a request about a matter mentioned in subsection (2)—the petroleum authority holder and the geothermal permit or GHG authority holder.

Division 2 Additional conditions

392BE Notice by authority to prospect holder to particular geothermal tenure or GHG authority holders or applicants

(1)This section applies if—
(a)an authority to prospect is granted (the ATP); and
(b)land in the authority to prospect’s area is in the area of, or in a proposed area under an application for any of the following (the other authority)—
(i)a geothermal permit;
(ii)a GHG permit;
(iii)a GHG data acquisition authority under the GHG storage Act.
(2)It is a condition of the authority to prospect that its holder must, within 20 business days after the holder receives notice of the grant of the ATP, give the holder of, or the applicant for, the other authority a notice stating—
(a)the ATP has been granted; and
(b)the ATP holder’s name; and
(c)the term of the ATP.

392BF Condition to notify particular geothermal tenure or GHG authority holders of proposed start of particular authorised activities

(1)This section applies to a petroleum authority holder if there is either of the following (the other authority) for the petroleum authority—
(a)an overlapping authority;
(b)a geothermal tenure or GHG authority sharing a common boundary with the petroleum authority.
(2)Before the petroleum authority holder first starts a designated activity in the other authority’s area, the petroleum authority holder must give the other authority holder at least 30 business days notice of the activity.
(3)A notice under subsection (2) must state—
(a)when the designated activity is to start; and
(b)where the designated activity is to be carried out; and
(c)the nature of the activity.
(4)Before changing the land on which the designated activity is being carried out, the petroleum authority holder must give the other authority holder at least 30 business days notice stating where the activity is to be carried out.
(5)Compliance with this section is a condition of the petroleum authority.
(6)In this section—
designated activity means any authorised activity for the petroleum authority, other than—
(a)an incidental activity under section 33 or 112; or
(b)an activity only involving selecting places where other authorised activities for the petroleum authority may be carried out.

392BG Requirement to continue geothermal or GHG coordination arrangement after renewal of or dealing with petroleum lease

(1)This section applies if—
(a)a petroleum lease has an overlapping authority (geothermal or GHG) that is a geothermal lease or GHG lease (the other lease); and
(b)a geothermal coordination arrangement or GHG coordination arrangement applies to the petroleum lease; and
(c)any of the following take place for the petroleum lease—
(i)a renewal;
(ii)a transfer;
(iii)a subletting of the lease or a share in the petroleum lease.
(2)It is a condition of the petroleum lease that its holder must continue to be a party to the following for the lease while the other lease continues in force—
(a)if the other lease is a geothermal lease—a geothermal coordination arrangement;
(b)if the other lease is a GHG lease—a GHG coordination arrangement.

Division 3 Restriction on Minister’s power to amend petroleum lease if overlapping tenure

392BH Interests of overlapping tenure holder to be considered

If there is an overlapping tenure for a petroleum tenure, the petroleum tenure may be amended under section 848 only if the Minister has considered the interests of the overlapping tenure holder.

Part 6 Additional provisions for development plans if overlapping tenure

392BI Operation of pt 6

This part imposes additional requirements for the following for which there is an overlapping authority (geothermal or GHG) that is an overlapping tenure—
(a)a proposed initial development plan for a proposed initial development plan for a petroleum lease;
(b)a proposed later development plan for a petroleum lease.

392BJ Statement about interests of overlapping tenure holder

The proposed development plan or amendment must include a statement of how the effects on and the interests of the overlapping tenure holder have or have not been considered having regard to the assessment criteria.

392BK Consistency with overlapping tenure’s development plan and with any relevant coordination arrangement

(1)To the extent the area of the petroleum lease and the overlapping tenure coincide or will coincide, the proposed development plan must be consistent with any geothermal coordination arrangement or GHG coordination arrangement for that area.
(2)Subsection (3) applies only if the overlapping tenure is an overlapping lease.
(3)The proposed plan must, to the extent the area of the petroleum lease and the overlapping lease coincide, or will coincide, be consistent with the development plan for the overlapping lease.

392BL Additional criteria for approval

In deciding whether to approve the proposed development plan, the Minister must consider the assessment criteria.

Part 7 Additional provisions for safety management systems

392BM Grant of petroleum lease does not affect obligation to make safety management system

(1)This section applies if an information statement accompanies a petroleum lease application as required under this chapter.
(2)The deciding of the application or the grant of the petroleum lease—
(a)does not affect the obligation to make a safety management system for any operating plant in the petroleum lease’s area; and
(b)is not of itself evidence that a safety management system or purported safety management system for an operating plant on the petroleum lease’s area complies with chapter 9.

392BN Requirements for consultation with particular overlapping tenure holders

(1)This section applies if—
(a)a person (an operator) proposes to be an operator of operating plant in the area of a petroleum tenure; and
(b)activities (relevant activities) carried out, or proposed to be carried out, at the plant may adversely affect the safe and efficient carrying out of authorised activities for an overlapping authority (geothermal or GHG) for the petroleum tenure; and
(c)the overlapping authority (geothermal or GHG) is an overlapping tenure.
(2)Before any operator may operate relevant operating plant, each operator must have made reasonable attempts to consult with the overlapping tenure holder about relevant activities for the plant.
(3)If there is more than 1 operator, the petroleum tenure holder may coordinate the consultation between the operators and the overlapping tenure holder.
(4)For subsection (2), an operator is taken to have made reasonable attempts to consult if—
(a)the operator gives the overlapping tenure holder a copy of the relevant parts of the operator’s proposed safety management system concerning any relevant operating plant the operator proposes to operate for the relevant activities; and
(b)the overlapping tenure holder has not within 30 days after the giving of the copy made any proposal to the operator about provisions for the system.
(5)An operator must, before making or remaking a safety management system for any relevant operating plant the operator operates or proposes to operate, have regard to any reasonable provisions for the system proposed by the overlapping tenure holder concerning relevant activities for the plant.
(6)However, the obligation under subsection (5) applies only to the extent the provisions are commercially and technically feasible for the operator or any relevant petroleum tenure holder.
(7)If an operator makes a safety management system for relevant operating plant and the system includes provisions proposed by the overlapping tenure holder, the operator must—
(a)give the overlapping tenure holder a copy; and
(b)lodge a notice stating any provisions proposed under subsection (5) and whether they were included in the system.
(8)In this section—
remaking, a safety management system, includes an amendment or remaking of the system of a type required under section 678.

392BO Application of provisions for resolving disputes about reasonableness of proposed provision

(1)This section applies if a dispute exists between an operator to which section 392BN applies and an overlapping tenure holder about the reasonableness of a provision proposed by the tenure holder for the operator’s proposed safety management system.
(2)Either party to the dispute may refer it to the chief inspector to decide whether the proposed provision is reasonable.
(3)The referral must be written and be lodged.
(4)Before deciding the dispute, the chief inspector must give each party a reasonable opportunity to lodge submissions about the dispute.
(5)The chief inspector’s decision binds each party to the dispute.
(6)The chief inspector must give each party an information notice about the decision.
(7)The chief inspector’s decision is not, of itself, evidence that a safety management system, or purported safety management system, for an operating plant complies with section 675.

Chapter 4 Licences and related matters

Note—

For when a licence is required, see sections 802 and 803.

Part 1 Survey licences

Division 1 Key authorised activities

393Operation of div 1

This division provides for the key authorised activities for a survey licence.

Note—

For other authorised activities, see the Common Provisions Act, chapter 3, part 2, division 4.

394Surveying activities

(1)A survey licence holder may enter the area of the licence to—
(a)investigate and survey its potential and suitability for the construction and operation of pipelines or petroleum facilities; and
(b)identify possible pipeline routes and pipeline or petroleum facility access routes.
(2)The carrying out of activities mentioned in subsection (1) is subject to—
(a)section 6; and
(b)chapter 5; and
(c)the mandatory and other conditions of the licence; and
(d)any exclusion or restriction provided for in the licence on the carrying out of the activities; and
(e)the relevant environmental authority for the licence.

Note—

Also, the carrying out of particular activities on particular land in a survey licence’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.

Division 2 Obtaining survey licence

395Applying for licence

(1)A person may apply for a survey licence.
(2)The application must—
(a)be in the approved form; and
(b)state each of the following—
(i)the type of pipeline or petroleum facility the applicant proposes to construct and operate;
(ii)the proposed use of the pipeline or facility;
(iii)for a proposed pipeline—its terminal points;
(iv)the period for which the licence is sought;
(v)the extent and nature of activities to be carried out under the licence; and
(c)address the criteria mentioned in section 397; and
(d)be accompanied by the fee prescribed under a regulation.

396Deciding application

(1)The Minister may decide to grant or refuse the survey licence.
(2)However, the licence can not be granted unless—
(a)the applicant is an eligible person; and
(b)a relevant environmental authority for the licence has been issued.

Note—

If the application relates to acquired land, see also section 30AC.
(3)The licence must state its term and area.
(4)The term must end no later than 2 years after the licence takes effect.
(5)The licence may also state—
(a)conditions or other provisions of the licence not inconsistent with the mandatory conditions for survey licences; or
(b)a day for the licence to take effect.
(6)However, the provisions of the licence may exclude or restrict the carrying out of an authorised activity for the licence.
(7)If no day of effect is decided, the licence takes effect on the day it is granted.

397Criteria for decisions

The matters that must be considered in deciding whether to grant a survey licence or deciding its provisions include the applicant’s—
(a)financial and technical resources; and
(b)ability to manage a survey to work out the suitability of the area of the licence for the pipeline or petroleum facility the applicant proposes to construct and operate.

Part 2 Pipeline licences

Note—

For when a pipeline licence is required for a pipeline, see section 802.

Division 1 Key authorised activities

Subdivision 1 Preliminary

398Operation of div 1

(1)This division provides for the key authorised activities for a pipeline licence.

Notes—

1For other authorised activities, see chapter 5, part 8 and the Common Provisions Act, chapter 3, part 7.
2The carrying out of particular activities on particular land in a pipeline licence’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.
(2)The authorised activities may be carried out despite the rights of an owner or occupier of land on which they are exercised.
(3)However, the carrying out of the authorised activities is subject to—
(a)subdivision 2; and
(b)chapter 5; and
(c)the mandatory and other conditions of the licence; and
(d)any exclusion or restriction provided for in the licence on the carrying out of the activities.

399What is pipeline land for a pipeline licence

(1)Pipeline land, for a pipeline licence, is land—
(a)that the licence holder owns; or
(b)over which the holder—
(i)holds an appropriate easement for the construction or operation of the pipeline; or
(ii)has obtained the owner’s written permission to enter to construct or operate the pipeline; or
(iii)holds a part 5 permission to enter to construct or operate the pipeline.
(2)To remove any doubt, it is declared that—
(a)the granting of a pipeline licence does not, of itself, create an easement for the construction or operation of the pipeline; and
(b)the giving of a waiver of entry notice under the Common Provisions Act, section 42 is not, of itself, a permission for subsection (1)(b)(ii).
(3)If the Coordinator-General acquires an easement over land for a purpose that includes providing for the construction and operation of a pipeline to transport petroleum, the only owner of the land, for a permission mentioned in subsection (1)(b)(ii), is the Coordinator-General.
(4)In this section—
acquires means acquires under the State Development Act.

399AWritten permission binds owner’s successors and assigns

(1)This section applies if a pipeline licence holder obtains the written permission of the owner of land to enter the land to construct and operate a pipeline the subject of the licence.
(2)The permission is—
(a)for the benefit of anyone who holds the licence from time to time; and
(b)taken to have been given by, and is binding on, each of the owner’s successors and assigns for the land.
(3)However, subsection (2)(b) does not apply to a person who is a successor or assignee for the land if—
(a)an easement over the land is not registered as mentioned in section 437A within 9 months after the pipeline licence holder gives notice of completion of the pipeline under section 420; and
(b)the person became the owner of the land after the end of the 9 months.

Subdivision 2 General restriction on authorised activities

400Restriction if there is an existing geothermal, GHG or mining lease

If land in the area of a pipeline licence is also in the area of a geothermal lease, GHG lease or mining lease and the lease was granted before the licence, an authorised activity for the licence may be carried out on the land only if—
(a)the lease holder has agreed in writing to the carrying out of the activity; and
(b)a copy of the agreement has been lodged; and
(c)the agreement is still in force.

Subdivision 3 Pipeline construction and operation

401Construction and operation of pipeline

(1)The holder of a pipeline licence may construct or operate each pipeline the subject of the licence on—
(a)pipeline land for the licence; and
(b)subject to division 6, public land in the area of the licence.

Notes—

1See also section 802 (Restriction on pipeline construction or operation).
2For who may exercise the rights for the holder, see section 563.
3For who owns the pipeline, see chapter 5, part 6.
(2)However, if native title exists in relation to land mentioned in subsection (1), the holder must have or hold an interest or permission mentioned in section 399(1)(b) for the native title rights and interests.
(3)To remove any doubt, it is declared that the mere grant of the licence does not, of itself, authorise—
(a)the construction or operation of a pipeline on other land in the area of the licence; or
(b)taking, interfering with or using produced water.

402Licence may extend transportation right to other prescribed substances

(1)A condition of a pipeline licence may extend its holder’s right under section 401 to operate any pipeline in the area of the licence to include the transportation of either of the following substances—
(a)a GHG stream;
(b)a substance prescribed under a regulation.
(2)However, a substance may be prescribed only if it is similar to petroleum and is suitable for transportation by the pipeline.
(3)The condition may impose restrictions on the extended right.

403Incidental activities

(1)This section applies if, under section 401, a pipeline licence holder has the right to construct or operate a pipeline.
(2)The holder may carry out an activity (an incidental activity) in the area of the licence if carrying out the activity is reasonably necessary for the construction or operation.

Examples of incidental activities—

1constructing or operating plant or works, including, for example, bridges, powerlines, roads, trenches and tunnels
2constructing or using temporary structures or structures of an industrial or technical nature, including, for example, mobile and temporary camps
3removing vegetation for, or for the safety of, the pipeline construction or operation

Note—

See also chapter 5 (Common petroleum authority provisions) and section 20 (What are the conditions of a petroleum authority).
(3)Also, the holder may carry out an activity (a stated pipeline licence incidental activity) in the area of the licence if—
(a)the activity is carried out on pipeline land concurrently with the construction or operation; and
(b)the activity is stated on the licence to be an incidental activity for this subsection that the holder of the licence is entitled to carry out under the licence; and
(c)the carrying out of the activity is reasonably necessary for, or incidental to, carrying out an authorised activity for a petroleum lease, a petroleum facility licence or another pipeline licence.
(4)However, constructing or using a structure, other than a temporary structure, for office or residential accommodation is not an incidental activity or a stated pipeline licence incidental activity.

Note—

For development generally, see the Planning Act 2016, chapter 3.

Division 2 Availability of pipeline licences

404Licence types—area or point to point

A pipeline licence may be granted—
(a)over a stated area (an area pipeline licence); or
(b)for a pipeline from one stated point or points to another point or points (a point-to-point pipeline licence).

405Pipeline licence can not be granted for distribution pipeline

A pipeline licence under this Act can not be granted for a distribution pipeline.

406Pipeline licence may be granted over any land

A pipeline licence may be granted over any land, including land in the area of another petroleum authority.

Division 3 Obtaining pipeline licence

Subdivision 1 Applying for pipeline licence

407Who may apply and multiple licence applications

(1)A person may apply for a pipeline licence.
(2)However, a person can not, in the same application, apply for—
(a)a point-to-point pipeline licence for more than 1 point-to-point pipeline; or
(b)an area pipeline licence for more than 1 area; or
(c)a point-to-point pipeline licence and an area pipeline licence.

409Requirements for making application

The application must—
(a)be in the approved form; and
(b)state each of the following (the application details)—
(i)a description of the land in the area of the licence;
(ii)the type and purpose of each pipeline to be the subject of the licence and each substance proposed to be transported through it;
(iii)for a point-to-point pipeline licence—
(A)the pipeline’s terminal points; and
(B)if the pipeline has not already been constructed—a proposed day for the completion of the construction of the pipeline;
(iv)for an area pipeline licence other than to the extent the application is for existing pipelines—a proposed day for the completion of the construction of each initial pipeline mentioned in the licence;
(v)the extent and nature of activities proposed to be carried out under the licence, including, for example, the extent and nature of any proposed stated pipeline licence incidental activity for the licence; and
(c)if the area of the licence is, or is included in, the area of another petroleum authority or a mining interest—identify possible impacts of authorised activities under the licence on authorised activities under the other petroleum authority or on mining under the mining interest; and
(d)address the criteria mentioned in section 415(1)(a); and
(e)if the activities to be carried out under the pipeline licence include any proposed stated pipeline licence incidental activity—address the criteria mentioned in section 415(2); and
(f)be accompanied by the fee prescribed under a regulation.

409ANotice of application to relevant local government

(1)This section does not apply if the application is for an existing pipeline.
(2)The applicant must, within 10 business days after making the application, give each relevant local government a notice stating the application details under section 409(b) for the proposed application.
(3)If subsection (2) is not complied with, the application lapses.
(4)To remove any doubt, it is declared that the lapsing of the application under subsection (3) does not of itself prevent the former applicant making another pipeline licence application.
(5)In this section—
relevant local government means a local government in whose local government area pipelines are proposed to be constructed under the licence.

Subdivision 2 Deciding pipeline licence application

410Deciding whether to grant licence

(1)The Minister may—
(a)subject to sections 411 and 412A, grant the applicant a pipeline licence only if—
(i)the applicant is an eligible person; and
(ii)a relevant environmental authority for the licence has been issued; and
(b)before granting the licence, require the applicant to do all or any of the following within a stated reasonable period—
(i)pay the licence fee for the first year of the proposed licence;
(ii)give, under section 488, security for the licence.

Note—

If the application relates to acquired land, see also section 30AC.
(2)If the applicant does not comply with a requirement under subsection (1), the Minister may refuse to grant the licence.

411Public notice requirement

(1)The Minister must not grant the applicant a pipeline licence unless—
(a)the notice complying with subsection (2)(a) has been published as required under subsection (2)(b); and
(b)the applicant has given the chief executive evidence of the publication; and
(c)the Minister has considered any submissions in response to the notice lodged within the period stated in the notice.
(2)For subsection (1)(a), the notice must—
(a)state each of the following—
(i)that a pipeline licence application has been made;
(ii)the applicant’s name;
(iii)the area proposed for the licence;
(iv)where further details about the application can be obtained;
(v)a period of at least 30 business days during which anyone may lodge submissions about the application;
(vi)where submissions must be lodged; and
(b)be published in a newspaper circulating throughout the State or, if the proposed licence is an area pipeline licence, generally in the area.
(3)The applicant must bear the costs of the publication.

412Provisions of licence

(1)Each pipeline licence must state—
(a)its term and area; and

Note—

See also section 414 (Provision for reduction of area of licence).
(b)for a point-to-point pipeline licence—the day for completion of the construction of the pipeline, if it has not already been constructed; and
(c)for an area pipeline licence—the day for completion of the construction of each initial pipeline to be the subject of the licence, if they have not already been constructed; and
(d)for a pipeline licence under which a stated pipeline licence incidental activity may be carried out—the stated pipeline licence incidental activities that the holder of the licence is entitled to carry out under the licence.
(2)Subject to section 413, the licence may also state—
(a)conditions or other provisions of the licence, other than conditions or provisions that are—
(i)inconsistent with the mandatory conditions for pipeline licences; or

Note—

For mandatory conditions, see division 4 (Key mandatory conditions for pipeline licences) and chapter 5, part 8 (General provisions for conditions and authorised activities).
(ii)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the licence; and
(b)review days for the licence; and

Note—

For the consequences of a pipeline licence having review days, see division 7.
(c)the day it takes effect.
(3)However, the provisions of the licence may exclude or restrict the carrying out of an authorised activity for the licence.
(4)If no day of effect is stated, the licence takes effect on the day it is granted.
(5)This section applies subject to section 412A.

412AProvisions about grant and conditions of licence for coordinated project

(1)This section applies if a pipeline licence or proposed pipeline licence is for a coordinated project.
(2)The Minister must not grant the licence until the Minister has been given the Coordinator-General’s report for the project.
(3)Any Coordinator-General’s conditions for the licence must be stated in the licence.
(4)Any other condition of the licence stated under section 412 must not be inconsistent with the Coordinator-General’s conditions.
(5)If a mandatory condition for pipeline licences conflicts with any of the Coordinator-General’s conditions, the Coordinator-General’s condition prevails to the extent of the inconsistency.

413Restriction on imposing takeover condition

(1)A pipeline licence may include a condition (a takeover condition) that takeover action may be taken on grounds, or in circumstances, stated in the licence only if—
(a)the licence is a point-to-point pipeline licence; and
(b)the Minister is satisfied—
(i)an appropriate competitive tender process has been carried out to select the developer for the pipeline; and
(ii)a contract to which the State and the applicant are parties provides for the imposition of the condition.
(2)In this section—
takeover action means doing 1 or more of the following—
(a)cancelling the licence, other than by way of noncompliance action;
(b)transferring the pipeline to the State;
(c)taking over the construction of the pipeline;
(d)taking over the operation of the pipeline;
(e)transferring to the State the licence holder’s interest in pipeline land for the pipeline;
(f)transferring 1 or more of the following to an entity other than the State—
(i)the pipeline;
(ii)the licence;
(iii)the licence holder’s interest in pipeline land for the pipeline.

414Provision for reduction of area of licence

A pipeline licence may provide that stated land ceases to be in the area of the licence if—
(a)construction of a stated pipeline is completed; and
(b)the land has not become pipeline land for the licence.

415Criteria for decisions

(1)The matters that must be considered in deciding whether to grant a pipeline licence or deciding its provisions include each of the following—
(a)the applicant’s—
(i)financial and technical resources; and
(ii)ability to competently and safely manage any construction and the operation of pipelines the subject of the licence;
(b)the appropriateness of each pipeline for its purpose as stated in the application;
(c)for an area pipeline licence—the minimum area required for pipelines the subject of the licence;
(d)if the area of the licence is, or is included in, the area of another petroleum authority or a mining interest—possible impacts of authorised activities under the licence on authorised activities under the other petroleum authority or on mining under the mining interest;
(e)the extent and nature of any proposed stated pipeline licence incidental activity for the licence;
(f)whether the proposed licence is in the public interest.
(2)In considering the extent and nature of any proposed stated pipeline licence incidental activity, the Minister must have regard to the following—
(a)whether the carrying out of the activity under the pipeline licence would have the overall effect of reducing impacts of authorised activities on land, landowners and the community;
(b)whether the activity is reasonably necessary for, or incidental to, carrying out an authorised activity for a petroleum lease, a petroleum facility licence or another pipeline licence;
(c)whether the activity would be more appropriately carried out under a petroleum lease, a petroleum facility licence or another pipeline licence.

416Information notice about refusal

On refusal of the application, the applicant must be given an information notice about the decision to refuse.

Division 4 Key mandatory conditions for pipeline licences

417Operation of div 4

This division provides for particular mandatory conditions for pipeline licences.

Notes—

1Chapter 5 also provides for mandatory conditions for pipeline licences.
2For what is a mandatory condition, see section 20(2).

419Obligation to construct pipeline

(1)Subject to sections 401 and 419A, a pipeline licence holder must complete construction of the pipeline the subject of the licence on or before any completion day for the construction stated in the licence.
(2)However, if the licence is an area pipeline licence, subsection (1) only applies for each initial pipeline mentioned in the licence.

419ANotice to chief inspector before construction starts

(1)A pipeline licence holder must give the chief inspector notice of the holder’s intention to start construction of the pipeline the subject of the licence at least 20 business days before the construction starts.

Maximum penalty—100 penalty units.

Note—

For other relevant provisions about giving the chief inspector documents, see section 851AA.
(2)However, if the licence is an area pipeline licence, subsection (1) only applies for each initial pipeline mentioned in the licence.
(3)An applicant for a pipeline licence may give a notice under subsection (1).
(4)The day stated for construction to start may be stated as the day the applicant becomes the holder of the licence.
(5)This section does not apply to the holder of a pipeline licence if the pipeline to be constructed is for transporting produced water.

420Notice of completion of pipeline

(1)This section applies if—
(a)the construction of a pipeline under an area pipeline licence is completed; or
(b)a pipeline the subject of a point-to-point pipeline licence is completed.
(2)The licence holder must, within the relevant period, lodge a notice of completion of the pipeline.
(3)The notice must—
(a)state the day the pipeline was completed; and
(b)describe—
(i)the pipeline land for the licence; and
(ii)any public land in the area of the licence the holder reasonably requires to operate the pipeline; and
(c)include a diagram of the pipeline, as constructed or completed, that gives enough information to allow the pipeline to be located, including, for example, its depth of burial; and
(d)be accompanied by the handling fee to record the information, as prescribed under a regulation.
(4)In this section—
relevant period means the period that ends—
(a)for a pipeline the subject of a point-to-point pipeline licence—6 months after its completion; or
(b)for a pipeline under an area pipeline licence—40 business days after its completion.

421Notice to public road authority of pipeline constructed on public road

If a pipeline licence holder constructs a pipeline on a public road, the holder must, within 6 months after completing the pipeline—
(a)give the public road authority for the road accurate details of the location of the pipeline; and
(b)keep complete and accurate records of the location of the pipeline.

422Obligations in operating pipeline

(1)The holder of a pipeline licence must, after the pipeline has been constructed, operate it in a way that ensures its continuing capacity to safely and reliably transport—
(a)petroleum, fuel gas or produced water; and
(b)if, under section 402, the right to operate the pipeline is extended to include another substance—the other substance.
(2)It is a condition of a pipeline licence that the pipeline not remain unused for a continuous period of more than 3 years, unless the Minister otherwise agrees.

Note—

See also sections 559 (Obligation to decommission pipelines) and 804 (Duty to avoid interference in carrying out authorised activities).

422AObligation to hold relevant environmental authority and water licence

The holder of a pipeline licence for transporting produced water must, for the term of the licence, be the holder of a relevant environmental authority for the licence.

423Annual fees

(1)A pipeline licence holder must pay the State an annual licence fee as prescribed under a regulation.
(2)Subsection (3) applies to a pipeline licence holder if a pipeline the subject of the licence is a covered pipeline under the National Gas (Queensland) Law.
(3)The pipeline licence holder must also pay the State an annual fee, that is a proportion of the cost of the State’s funding commitments to national energy market regulation, as prescribed by regulation.
(4)The fee mentioned in subsection (3) is calculated based on the kilometres of pipeline the subject of the holder’s pipeline licence.
(5)A fee mentioned in subsection (1) or (3) must be paid in the way, and on or before the day, prescribed by regulation.
(6)In this section—
AEMC has the meaning given in the National Gas (Queensland) Law.
national energy market regulation means the functions and powers of the AEMC under the National Gas (Queensland) Law, section 69.

424Civil penalty for nonpayment of annual fees

(1)If a pipeline licence holder does not pay a fee as required under section 423, the holder must also pay the State a civil penalty.
(2)The amount of the penalty is 15% of the fee.
(3)The penalty—
(a)must be paid on the day after the last day for payment of the fee; and
(b)is still payable even if the holder later pays the fee.

Division 5 Amendment of point-to-point pipeline licences after pipeline completed

425Power to amend

If the holder of a point-to-point pipeline licence gives a notice under section 420, the Minister may amend the licence to reduce its area to—
(a)the pipeline land for the licence; and
(b)any public land in the area of the licence stated in the notice.

Division 6 Provisions for public land authorities

Subdivision 1 Public roads

426Public road authority’s obligations in aligning pipeline on road

If, under the Common Provisions Act, section 59, a public road authority imposes a condition about an alignment for a pipeline on, or proposed to be constructed on, a public road the alignment must be—
(a)situated to ensure reasonable protection for the pipeline and infrastructure proposed to be constructed in the carrying out of a stated pipeline licence incidental activity for the pipeline; and
(b)if practicable, on the footpath or verge of the road.

427Requirement to consult if construction affects existing pipeline or infrastructure

(1)This section applies if a public road authority proposes to construct or change a public road in a way that is likely to affect the location, operation or safety of—
(a)a pipeline; or
(b)infrastructure constructed in the carrying out of a stated pipeline licence incidental activity.
(2)The authority must give the relevant pipeline licence holder a notice stating—
(a)details of the proposed road or proposed change; and
(b)that the holder may, within a stated period, lodge submissions to the authority about the proposal at the office of the authority stated in the notice.
(3)The stated period must not end before 30 business days after the notice is given.
(4)Before deciding to implement the proposal, the authority must consider any submissions lodged by the holder within the stated period.
(5)If the authority decides to implement the proposal, it must give the holder notice of the decision.

428Costs of pipeline works caused by public road construction

(1)This section applies if—
(a)a public road authority constructs, or changes, a public road; and
(b)the road, or the road as changed, affects the safety, location or operation of—
(i)a pipeline constructed, or operated, or proposed to be constructed or operated; or
(ii)infrastructure constructed, or operated, or proposed to be constructed or operated, in the carrying out of a stated pipeline licence incidental activity; and
(c)because of the effects, it is necessary for the holder of the pipeline licence for the pipeline to carry out works relating to the pipeline or the infrastructure.
(2)The holder must bear the holder’s own costs of carrying out the works if—
(a)the road existed before the pipeline or infrastructure was constructed; or
(b)the road is constructed on an area that was dedicated to public use as a road before the pipeline or infrastructure was constructed.
(3)Otherwise, the holder may recover from the authority as a debt any reasonable costs the holder incurs in carrying out the works.

429Public road authority’s obligation to give holder information

(1)This section applies if a pipeline licence holder asks a public road authority for a public road in the area of the licence for information about—
(a)the permanent level of the road; or
(b)the alignment allocated by the authority for a pipeline the subject of the licence.
(2)The authority must comply with the request within 20 business days after it is made.
(3)The information given must be accurate and as complete as possible.

430Consequence of not giving information

If a public road authority does not comply with a request under section 429 about a public road, the pipeline licence holder that made the request may decide a reasonable permanent level and alignment for the road, based on—
(a)information available to the holder; and
(b)any standards prescribed under section 557(1)(b) for constructing pipelines on roads.

Subdivision 2 Works directions

431Power to give works directions

(1)This section applies if—
(a)a pipeline licence holder proposes to construct, has constructed, or is constructing—
(i)a pipeline on or through public land; or
(ii)infrastructure in the carrying out of a stated pipeline licence incidental activity; and
(b)the public land authority for the land has imposed a condition relating to the construction; and
(c)the authority reasonably considers works should be carried out to ensure compliance with the condition.
(2)The authority, may give the holder a notice (a works direction) directing the holder to carry out stated works to comply with the condition within a stated reasonable period.
(3)The works direction must—
(a)identify the relevant condition; and
(b)include, or be accompanied by, an information notice about the decision to make the works direction.
(4)Works stated in a works direction must comply with any standard prescribed under a regulation for carrying out the works to the extent the standard is relevant to the works.

432Compliance with works direction

(1)A pipeline licence holder to whom a works direction has been given must, within the period stated in it, comply with the direction to the reasonable satisfaction of the public land authority that gave the direction.
(2)If the holder does not comply with subsection (1) the authority may ensure the works the subject of the direction are carried out.
(3)The authority may recover from the holder as a debt any reasonable costs the authority incurs in ensuring the works are carried out.

Division 7 Ministerial review of pipeline licence conditions

433Application of div 7

This division applies only if a pipeline licence states a review day.

434Power to review licence

(1)The Minister may, by complying with sections 435 and 436, amend the pipeline licence if satisfied—
(a)the conditions of the licence—
(i)are no longer appropriate; or
(ii)do not make provision, or sufficient provision, about a matter; and
(b)the amendment is necessary or desirable.
(2)However, the licence can not be amended in a way that is inconsistent with the mandatory conditions for pipeline licences.
(3)This section does not limit the power to amend the licence under another provision of this Act.

435Notice of proposed amendment

(1)The Minister must give the pipeline licence holder a notice stating each of the following—
(a)the proposed amendment;
(b)the conditions of the licence that the Minister considers are no longer appropriate or the matter about which the conditions do not make provision, or sufficient provision;
(c)reasons why the Minister considers the amendment to be necessary or desirable;
(d)that the holder may, within a stated reasonable period, lodge submissions about the proposed amendment.
(2)The stated period must not end before 20 business days after the notice is given.

436Decision on proposed amendment

(1)Before deciding the proposed amendment, any submissions lodged within the period stated in the notice given under section 435 must be considered.
(2)If a decision is made not to make the proposed amendment, the holder must be given notice of the decision.
(3)If, after considering the submissions, the Minister is still satisfied under section 434(1), the amendment may be made.
(4)On deciding to make the amendment, the holder must be given an information notice about the decision.
(5)The amendment takes effect on the end of the appeal period for the decision, or if a later day of effect stated in the notice, on the later day.

Division 8 Miscellaneous provisions

437Limitation of pipeline licence holder’s liability

(1)This section applies if a person incurs a cost, damage or loss because of—
(a)the partial or total failure of a pipeline licence holder to transport petroleum or fuel gas through a pipeline; or
(b)fuel gas not of the prescribed quality transported through a pipeline the subject of a pipeline licence.
(2)However, this section does not apply to the extent to which liability for the cost, damage or loss is, under a contract, agreed between the person and the licence holder.
(3)The licence holder is not civilly liable for the cost, damage or loss if—
(a)the failure, or the fuel gas being not of the prescribed quality, was caused by a circumstance beyond the holder’s control; and
(b)the holder’s operation of the pipeline—
(i)complied with this Act and the conditions of the licence; and
(ii)was carried out in good faith and without negligence.
(4)Subsection (3) does not limit section 7(3).

437ACreation of easement by registration

(1)An easement over pipeline land or public land may be created for a pipeline licence holder by registering a document creating the easement under the Land Act 1994 or an instrument of easement under the Land Title Act 1994.
(2)Subsection (1)—
(a)applies even though the easement is not attached to, or used or enjoyed with, other land; and
(b)is subject to—
(i)the Land Act 1994, other than section 369(2); and
(ii)the Land Title Act 1994, other than section 89(2).
(3)The Land Act 1994, chapter 6, part 4, division 8 or the Land Title Act 1994, part 6, division 4 applies to the easement as if—
(a)it were a public utility easement; and
(b)the pipeline licence holder were a public utility provider; and
(c)if the land is forest land—
(i)a reference in the Land Act 1994, sections 362(1), 363(1)(c) and 369A(1) to the Minister were a reference to the Minister administering the Forestry Act 1959, part 4; and
(ii)the owner of the land were the chief executive of the department administering the Forestry Act 1959, part 4.

Note—

Under the Land Act 1994, section 363(4), the owner of a reserve or of unallocated State land for the purpose of consenting to the creation of an easement is the State.
(4)This section applies despite the Forestry Act 1959, section 26(1A).
(5)In this section—
forest land means land that is a State forest or timber reserve under the Forestry Act 1959.

Part 3 Petroleum facility licences

Note—

See section 803 for the restrictions on constructing or operating a petroleum facility.

Division 1 Key authorised activities

Subdivision 1 Preliminary

438Operation of div 1

(1)This division provides for the key authorised activities for a petroleum facility licence.

Notes—

1For other authorised activities, see chapter 5, part 8 and the Common Provisions Act, chapter 3, part 6.
2The carrying out of particular activities on particular land in a petroleum facility licence’s area may not be authorised following the taking of the land under a resumption law. See section 30AB.
(2)The authorised activities may be carried out despite the rights of an owner or occupier of land on which they are exercised.
(3)However, the carrying out of the authorised activities is subject to—
(a)subdivision 2; and
(b)chapter 5; and
(c)the mandatory and other conditions of the licence; and
(d)any exclusion or restriction provided for in the licence on the carrying out of the activities; and
(e)the Common Provisions Act.

439What is petroleum facility land for a petroleum facility licence

(1)Petroleum facility land, for a petroleum facility licence, is land—
(a)that the licence holder owns; or
(b)over which the holder—
(i)holds an appropriate easement for the construction or operation of the petroleum facility; or
(ii)has obtained the owner’s written permission to enter to construct or operate the petroleum facility; or
(iii)holds a part 5 permission to enter to construct or operate the petroleum facility.
(2)To remove any doubt, it is declared that—
(a)the granting of a petroleum facility licence does not, of itself, create an easement for the construction or operation of the petroleum facility; and
(b)the giving of a waiver of entry notice under the Common Provisions Act, section 42 is not, of itself, a permission for subsection (1)(b)(ii).

Subdivision 2 General restriction on authorised activities

440Restriction if there is an existing mining lease

If land in the area of a petroleum facility licence is also in the area of a mining lease and the mining lease was granted before the licence, an authorised activity for the licence may be carried out on the land only if—
(a)the mining lease holder has agreed in writing to the carrying out of the activity; and
(b)a copy of the agreement has been lodged; and
(c)the agreement is still in force.

Subdivision 3 Petroleum facility construction and operation

441Construction and operation of petroleum facility

(1)The holder of a petroleum facility licence may, on the petroleum facility land for the licence, construct or operate the petroleum facility.
(2)However, if native title exists in relation to the petroleum facility land, the holder must have or hold an interest or permission mentioned in section 439(1)(b) for the native title rights and interests.
(3)To remove any doubt, it is declared that the mere grant of the licence does not, of itself, authorise the construction or operation of the petroleum facility on other land in the area of the licence.

442Incidental activities

(1)This section applies if, under section 441, a petroleum facility licence holder has the right to construct or operate a petroleum facility.
(2)The holder may carry out an activity (an incidental activity) in the area of the licence if carrying out the activity is reasonably necessary for the construction or operation.

Examples of incidental activities—

1constructing or operating plant or works, including, for example, bridges, powerlines, roads, trenches and tunnels
2constructing or using temporary structures or structures of an industrial or technical nature, including, for example, mobile and temporary camps
3removing vegetation for, or for the safety of, the construction or operation of the petroleum facility

Note—

See also chapter 5 (Common petroleum authority provisions) and section 20 (What are the conditions of a petroleum authority).
(3)However, constructing or using a structure, other than a temporary structure, for office or residential accommodation is not an incidental activity.

Note—

For development generally, see the Planning Act 2016, chapter 3.

Division 1A Petroleum facility licence not required in relation to particular facilities

442AWhen petroleum facility licence not required

A petroleum facility licence is not required for—
(a)a facility constructed or operated under—
(i)the Amoco Australia Pty. Limited Agreement Act 1961; or
(ii)the Ampol Refineries Limited Agreement Act 1964; or
(b)the construction or operation of a petroleum facility for the distillation, processing, refining, storage or transport of petroleum authorised under—
(i)section 33; or
(ii)a petroleum lease or pipeline licence under this Act; or
(iii)a 1923 Act petroleum tenure.

Division 2 Obtaining petroleum facility licence

Subdivision 1 Applying for petroleum facility licence

443Who may apply

(1)A person may apply for a petroleum facility licence for a petroleum facility or proposed petroleum facility.
(2)However, if the facility is partly on the area of a petroleum lease and partly on other land, a person can not apply for a petroleum facility licence in relation to the facility unless the application is for the whole of the facility.

445Requirements for making application

The application must—
(a)be in the approved form; and
(b)state each of the following—
(i)the petroleum facility, or proposed petroleum facility, the subject of the application;
(ii)a description of the proposed petroleum facility land for the licence;
(iii)the precise location of the facility, or proposed petroleum facility on the land;
(iv)the purpose of the facility;
(v)for a proposed facility—a proposed day for the completion of the construction of the facility;
(vi)the extent and nature of activities proposed to be carried out under the licence; and
(c)if the area of the licence is, or is included in, the area of another petroleum authority or a mining interest—identify possible impacts of authorised activities under the licence on authorised activities under the other petroleum authority or on mining under the mining interest; and
(d)address the criteria mentioned in section 448(a); and
(e)be accompanied by the fee prescribed under a regulation.

445ANotice of application to relevant local government

(1)The applicant must, within 10 business days after making the application, give each relevant local government a notice stating the application details under section 445(b) for the proposed application.
(2)If subsection (1) is not complied with, the application lapses.
(3)To remove any doubt, it is declared that the lapsing of the application under subsection (2) does not of itself prevent the former applicant making another petroleum facility licence application.
(4)In this section—
relevant local government means a local government in whose local government area the petroleum facility is proposed to be constructed under the licence.

Subdivision 2 Deciding petroleum facility licence application

446Deciding whether to grant licence

(1)The Minister may—
(a)subject to section 447A, decide to grant the applicant a petroleum facility licence only if—
(i)the applicant is an eligible person; and
(ii)a relevant environmental authority for the licence has been issued; and
(b)before granting the licence, require the applicant to do all or any of the following within a stated reasonable period—
(i)pay the licence fee for the first year of the proposed licence;
(ii)give, under section 488, security for the licence.

Note—

If the application relates to acquired land, see also section 30AC.
(2)If the applicant does not comply with a requirement under subsection (1), the Minister may refuse to grant the licence.

447Provisions of licence

(1)Each petroleum facility licence must state—
(a)its term and area; and
(b)if the facility the subject of the licence has not already been constructed—a day by which its holder must complete construction of the facility.
(2)The term must end no later than 30 years after the licence takes effect.
(3)The area of the licence must be the area that the Minister considers is the minimum area needed to adequately carry out the purpose of the petroleum facility or proposed petroleum facility.
(4)The licence may also state—
(a)conditions or other provisions of the licence, other than conditions or provisions that are—
(i)inconsistent with the mandatory conditions for petroleum facility licences; or

Note—

For mandatory conditions, see division 3 (Key mandatory conditions for petroleum facility licences) and chapter 5, part 8 (General provisions for conditions and authorised activities).
(ii)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the licence; and
(b)the day it takes effect.
(5)However, the provisions of the licence may exclude or restrict the carrying out of an authorised activity for the licence.
(6)If no day of effect is stated, the licence takes effect on the day it is granted.
(7)This section applies subject to section 447A.

447AProvisions about grant and conditions of licence for coordinated project

(1)This section applies if a petroleum facility licence or proposed petroleum facility licence is for a coordinated project.
(2)The Minister must not grant the licence until the Minister has been given the Coordinator-General’s report for the project.
(3)Any Coordinator-General’s conditions for the licence must be stated in the licence.
(4)Any other condition of the licence stated under section 447 must not be inconsistent with the Coordinator-General’s conditions.
(5)If a mandatory condition for petroleum facility licences conflicts with any of the Coordinator-General’s conditions, the Coordinator-General’s condition prevails to the extent of the inconsistency.

448Criteria for decisions

The matters that must be considered in deciding whether to grant a petroleum facility licence or deciding its provisions include each of the following—
(a)the applicant’s—
(ii)financial and technical resources; and
(ii)ability to competently and safely manage the construction and operation of the proposed petroleum facility;
(b)for a proposed petroleum facility, the appropriateness of its—
(i)location on the proposed petroleum facility land; and
(ii)configuration, design and construction methods;
(c)if the area of the licence is, or is included in, the area of another petroleum authority or a mining interest—any possible impacts of authorised activities under the licence on authorised activities under the other petroleum authority or on mining under the mining interest;
(d)the purpose of the facility;
(e)whether the proposed licence is in the public interest.

448AProvision for facility already the subject of a pipeline licence

(1)This section applies if—
(a)the application is granted; and
(b)the application was for a facility for the distillation, processing, refining, storage or transport of petroleum authorised under a pipeline licence held by the applicant.
(2)Despite section 16(2), the facility ceases to be a part of any pipeline the subject of the pipeline licence.
(3)The operation of the facility ceases to be an authorised activity for the pipeline licence.

449Information notice about refusal

On refusal of the application, the applicant must be given an information notice about the decision to refuse.

Division 3 Key mandatory conditions for petroleum facility licences

450Operation of div 3

This division provides for particular mandatory conditions for petroleum facility licences.

Notes—

1Chapter 5 also provides for mandatory conditions for petroleum facility licences.
2For what is a mandatory condition, see section 20(2).

452Obligation to construct facility

A petroleum facility licence holder must complete construction of the petroleum facility the subject of the licence on or before any completion day for the construction stated in the licence.

453Obligation to operate facility

The holder of a petroleum facility licence must, after the facility has been constructed, operate it in a way that ensures the continuing of the facility for the purpose for which it is licensed.

454Annual licence fee

(1)A petroleum facility licence holder must pay the State an annual licence fee as prescribed under a regulation.
(2)The fee must be paid in the way, and on or before the day, prescribed under a regulation.

455Civil penalty for nonpayment of annual licence fee

(1)If a petroleum facility licence holder does not pay an annual licence fee as required under section 454, the holder must also pay the State a civil penalty.
(2)The amount of the penalty is 15% of the fee.
(3)The penalty—
(a)must be paid on the day after the last day for payment of the fee; and
(b)is still payable even if the holder later pays the fee.

Part 4 Taking land for pipelines and petroleum facilities

456State’s power to take land

(1)This section applies subject to sections 457 and 458.
(2)The State may take land, or an interest in land for—
(a)the carrying out of authorised activities for a licence or proposed licence; or
(b)petroleum processing, storage or transport, including, for example, to construct and operate a pipeline.
(3)The power to take land may be exercised—
(a)for the State by the Minister; and
(b)whether or not the State proposes to transfer the land, or an interest in the land, to someone else.
(4)To remove any doubt, it is declared that if the land is held from the State under the Land Act 1994 or another Act, the power is as well as, and is not limited by, any power under the Land Act 1994 or other Act to forfeit or take the land or the interest under which it is held.
(5)In this section—
licence does not include a survey licence.

457Restrictions on power to take land

(1)The State may take land under section 456 only if the Minister is satisfied—
(a)the area of the land is the minimum area needed to adequately carry out the activities for which it is taken; and
(b)other land is not more appropriate for carrying out the activities; and
(c)the taking of the land is in the public interest.
(2)Also, the State may take land for authorised activities for a petroleum facility licence, or proposed petroleum facility licence, for a facility to be used in connection with a pipeline or proposed pipeline only if the Minister is satisfied the licence holder, or proposed licence holder, has decided the site of the pipeline.

458Process for taking land

(1)The Acquisition of Land Act 1967 (the ALA) applies for taking land under section 456 and paying compensation for land taken as if—
(a)the taking were a taking under that Act by a constructing authority; and
(b)the reference in the ALA, section 5(1)(c) to the taking of land for a purpose stated in the schedule to that Act were a reference to the taking of land for a purpose mentioned in section 456(2); and
(c)the constructing authority were the State; and
(d)the reference in the ALA to the relevant Minister is a reference to the Minister administering this Act.

Note—

However, for land where native title exists, see sections 8 and 855.
(2)Taking land under section 456 does not become a taking of land under the ALA.
(3)In assessing the compensation, allowance can not be made for the value of petroleum known or supposed to be on or under, or produced from, the land.

Note—

See also section 462 (Disposal of land taken by State).

459Recovery of costs and compensation from holder or proposed holder

(1)This section applies if the State incurs, or becomes liable to pay—
(a)costs relating to—
(i)the taking under section 456(2) of land for the carrying out of authorised activities for a licence or proposed licence; or
(ii)the transfer of the land to the relevant person; or
(iii)the negotiation of the transfer, or any contract relating to the transfer; or
(b)assessed compensation for the taking; or
(c)costs relating to the compensation or its assessment; or
(d)interest on the compensation or costs.
(2)The State may recover from the relevant person as a debt—
(a)the reasonable amount of the costs; and
(b)the amount of the assessed compensation and the interest.
(3)In this section—
relevant person means—
(a)relevant licence holder; or
(b)if the taking was for authorised activities for a proposed licence—the person who proposed to obtain the licence.

460Power to enter land proposed to be taken

(1)The Minister may authorise a person (the authorised person) to enter land proposed to be taken under section 456 to report to the Minister about the suitability of the land for the purpose for which it is proposed to be taken.
(2)Subsection (1) applies even if the process for taking the land has not started.
(3)The authorisation—
(a)must be written; and
(b)may be given on conditions the Minister considers appropriate.
(4)Subject to section 461, the authorised person may enter the land and carry out activities necessary or convenient for the report.
(5)However, the power under this section does not include the power to enter a structure, or a part of a structure, used for residential purposes without the consent of the occupier of the structure or part of the structure.

461Requirements for entry to land proposed to be taken

(1)An authorised person under section 460 may enter land proposed to be taken only if the following person is given notice of the proposed entry at least 10 business days before the proposed entry—
(a)if the land has an occupier—any occupier of the land;
(b)if the land does not have an occupier—its owner.
(2)The notice must—
(a)identify the authorised person; and
(b)describe the land; and
(c)state—
(i)that the authorised person has, under this section, been authorised to enter the land; and
(ii)the purpose of the entry; and
(iii)the period of the entry.
(3)The chief executive may approve the giving of the notice by publishing it in a stated way.
(4)The chief executive may give the approval only if satisfied the publication is reasonably likely to adequately inform the person to whom the notice is required to be given of the proposed entry.
(5)If the authorised person intends to enter the land and any occupier of the land is present at the land, the person also must show, or make a reasonable attempt to show, the occupier the person’s authorisation under this section.

462Disposal of land taken by State

(1)The State may transfer land taken under section 456 to anyone else, including, for example, the holder or proposed holder of a licence for the land.
(2)The Acquisition of Land Act 1967, section 41, applies to land taken under section 456.
(3)However, subsection (2) only applies if the State has not offered, or proposed to offer, the land for sale to any holder, or proposed holder, of a licence the area of which includes the land.

Part 5 Permission to enter land to exercise rights under a pipeline or petroleum facility licence

Division 1 Applying for and obtaining permission

463Applying for permission

(1)A person who holds, or who has applied for, a pipeline licence may apply for permission (a part 5 permission) to enter the area, or proposed area, of the licence to construct or operate a pipeline the subject of the licence or proposed licence.
(2)A person who holds, or who has applied for, a petroleum facility licence may apply for permission (also a part 5 permission) to enter the area, or proposed area, of the licence to construct or operate the petroleum facility the subject of the licence or proposed licence.

464Requirements for making application

An application for a part 5 permission must—
(a)be in the approved form; and
(b)be accompanied by the fee prescribed under a regulation; and
(c)state the steps the applicant has taken to—
(i)become the owner of the land; or
(ii)be granted an appropriate easement to construct or operate the pipeline or petroleum facility; or
(iii)obtain the permission of the owner of the land to enter the land to construct or operate the pipeline or petroleum facility.

Note—

See sections 401 (Construction and operation of pipeline) and 441 (Construction and operation of petroleum facility).

465Notice to owners about application

(1)The applicant must give each owner of the land notice (a consultation notice) of the application.
(2)The consultation notice must describe the land and state—
(a)the purpose of the proposed part 5 permission; and
(b)any conditions the applicant proposes for the part 5 permission; and
(c)a period (the consultation period) during which—
(i)the applicant will consult with each owner about the proposed permission and the conditions; and
(ii)an owner may lodge submissions about the proposed part 5 permission and the conditions.
(3)The consultation period must end at least 20 business days after each owner has been given the consultation notice.
(4)The period may be extended by agreement between the applicant for the part 5 permission and the owner.

466Change in ownership during consultation period

(1)This section applies if—
(a)an owner of the land (the former owner) has been given a consultation notice; and
(b)after the notice was given, the ownership of the land changes.
(2)The applicant is taken to have given the notice to the new owner of the land when the former owner was given the notice.
(3)If the applicant becomes aware of the change, the applicant must give the new owner a copy of the notice.
(4)A failure to comply with subsection (3) does not prevent the application from being decided.

467Deciding application

(1)The Minister may, after the consultation period has ended, grant or refuse the part 5 permission.
(2)The Minister may impose conditions on the part 5 permission.

468Criteria for decision

(1)The Minister may grant the part 5 permission only if satisfied of each of the following—
(a)the applicant has given each owner of the land a consultation notice and the applicant has shown that each owner of the land has received the notice;
(b)either—
(i)the consultation period has ended and the Minister is reasonably satisfied the applicant has made reasonable attempts to consult with each owner of the land; or
(ii)before the end of the consultation period each owner of the land has—
(A)agreed to the grant of the part 5 permission; or
(B)given the applicant permission to enter the land;
(c)the applicant has decided the site of the pipeline or facility;
(d)it is reasonable to site the pipeline or petroleum facility on the land;
(e)the land the subject of the part 5 permission is the minimum area needed for the permission;
(f)the granting of the part 5 permission is in the public interest.
(2)In deciding the application any submissions lodged by an owner of the land during the consultation period must be considered.

469Statement of proposed resumption may be included

The part 5 permission may include a statement that the State intends to resume the land the subject of the permission if the land is not, other than because of the permission, pipeline land or petroleum facility land for the licence, or proposed licence within 9 months after the permission takes effect.

Note—

For the State’s power to take the land, see part 4.

470Steps after and taking effect of part 5 permission

(1)On granting of the part 5 permission, the applicant and the owner of the land the subject of the permission must be given a copy of it.
(2)The permission takes effect on the later of the following days—
(a)the day it is granted;
(b)if the applicant does not hold the relevant pipeline or petroleum facility licence—the day the licence is granted;
(c)another day fixed by the Minister.

Note—

For the authorised activities that may be carried out when the part 5 permission takes effect (and, if the licence has not been granted, when it is granted), see sections 401 and 441.

If the licence has not yet been granted, see also section 802 and 803.

(3)The Minister must, after granting the part 5 permission, publish it in the gazette.

Division 2 Effect and term of part 5 permission

471Effect of part 5 permission

(1)The effect of the part 5 permission is that, under section 399 or 439, the land the subject of the permission becomes pipeline land or petroleum facility land for the licence.
(2)The part 5 permission does not, of itself, give the holder the right to carry out authorised activities for the licence.

Note—

The Common Provisions Act, chapter 3 provides for how the holder may enter the land to carry out authorised activities.

472Term of part 5 permission

(1)A part 5 permission ceases to be in force—
(a)if the land the subject of the permission becomes, other than because of the permission, pipeline land or petroleum facility land for the relevant licence; or
(b)if it is cancelled under section 473; or
(c)9 months after it is granted.
(2)However, if the State has, within the 9 months, given a notice of intention to resume the land under part 4, the part 5 permission continues in force until—
(a)the land is taken under part 4 and it is transferred to the licence holder; or
(b)the taking of the land is discontinued.

Note—

See section 458 (Process for taking land) and the Acquisition of Land Act 1967, part 3 (Discontinuance of taking of land).
(3)On the part 5 permission ceasing to be in force, the Minister must gazette a notice stating that it is no longer in force.

473Power to cancel part 5 permission

(1)The Minister may cancel the part 5 permission at any time.
(2)The cancellation takes effect when the holder is given an information notice about the decision to cancel or, if the notice states a later day of effect, on that later day.

Part 6 Amending licence by application

474Amendment applications that may be made

(1)A licence holder may apply for the amendment of the licence.

Examples of how a licence may be amended—

changing, removing or adding a new condition
for a pipeline or petroleum facility licence—
changing any configuration or specification stated in the licence for the pipeline or facility; or
increasing or reducing the area of the pipeline or petroleum facility land
for a pipeline licence—changing a route of a pipeline or amending the licence to include the carrying out of stated pipeline licence incidental activities
(2)Despite subsection (1), an application can not be made to amend the licence in a way that is—
(a)inconsistent with a mandatory condition, other than to change the completion day for construction stated in the licence; or

Note—

See sections 419 (Obligation to construct pipeline) and 452 (Obligation to construct facility).
(b)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the licence.

475Requirements for making application

The application must be—
(a)in the approved form; and
(b)accompanied by the fee prescribed under a regulation.

476Notice requirements

(1)This section applies for the application if it seeks to extend the area of the licence.
(2)If the area is for a pipeline, sections 409A and 411 apply as if the application was a pipeline licence application for the proposed extended area.
(3)If the area is for a petroleum facility, section 445A applies as if the application was a petroleum facility licence application for the proposed extended area.

477Deciding application

(1)The Minister may grant or refuse the amendment.
(2)In deciding the application, the relevant criteria under this chapter for deciding an application to obtain the licence must, to the extent they are relevant, be considered.

Note—

See sections 397, 415 and 448 (Criteria for decisions).
(3)The Minister may grant the application subject to the applicant’s written agreement to the Minister amending the licence in a stated way that the Minister considers appropriate.

Examples—

An application is to extend a pipeline or petroleum facility. The Minister may grant the application subject to the applicant agreeing in writing to the Minister amending the licence so that the extension must be completed—
(a)by a stated day; or
(b)in accordance with a stated standard or specification.

478Information notice about refusal

On refusal of the application, the applicant must be given an information notice about the decision to refuse.

Part 7 Renewals

478ASurvey licence can not be renewed

A survey licence can not be renewed.

479Conditions for renewal application for other types of licence

(1)The holder of a licence, other than a survey licence, may apply to renew the licence only if none of the following is outstanding—
(a)an annual licence fee for the licence;
(b)a civil penalty under section 424 or 455 for nonpayment of an annual licence fee;
(c)interest payable under section 588 on the annual licence fee or civil penalty;
(d)security for the licence, as required under section 488.
(2)Also, the application can not be made—
(a)more than 60 business days before the end of the term of the licence; or
(b)after the licence has ended.

480Requirements for making application

The application must be—
(a)in the approved form; and
(b)state whether or not the applicant has complied with chapter 5, part 7, for reports required to be lodged in relation to the licence; and
(c)accompanied by—
(i)the application fee prescribed under a regulation; and
(ii)if the application is made less than 20 business days before the end of the term of the licence—an amount that is 10 times the application fee.

481Continuing effect of licence for renewal application

(1)This section applies if the term of the licence ends before the application is decided.
(2)Despite the ending of the term, the licence continues in force until the earlier of the following to happen—
(a)the start of any renewed term of the licence; or
(b)a refusal of the application takes effect; or
(c)the application is withdrawn; or
(d)the licence is cancelled under this Act.
(3)If the licence is renewed, subsection (2) is taken never to have applied for the period from the end of the term of the licence being renewed, as stated in that licence.

482Deciding application

(1)The Minister may grant or refuse the renewal.
(2)However, the Minister must grant the renewal if the Minister considers—
(a)the applicant—
(i)continues to be capable of carrying out authorised activities for the licence; and
(ii)has substantially complied with the licence; and
(b)a relevant environmental authority for the renewed licence has been issued.

Note—

See also section 30AC in relation to acquired land that was previously in the area of the licence being renewed.
(3)Also, the Minister may, as a condition of deciding to grant the application, require the applicant to do all or any of the following within a stated reasonable period—
(a)pay the annual licence fee for the first year of the renewed licence;
(b)give, under section 488, security for the renewed licence.
(4)If the applicant does not comply with the requirement, the Minister may refuse the application.

483Provisions and term of renewed licence

(1)The conditions of the renewed licence may be different from the conditions or other provisions of the licence being renewed.
(2)However, a takeover condition may be imposed on a renewed licence only if the licence being renewed was subject to that condition.
(3)The renewed licence must state its term.
(4)The renewed licence may also state—
(a)conditions or other provisions of the renewed licence, other than conditions or provisions that are—
(i)inconsistent with the mandatory conditions for that type of licence; or
(ii)the same as, or substantially the same as, or inconsistent with, any relevant environmental condition for the licence; and
(b)a day for the renewed licence to take effect.
(5)However, the provisions of the renewed licence may exclude or restrict the carrying out of an authorised activity for the licence.
(6)If the renewed licence is decided before the end of the term of the licence being renewed as stated in that licence (the previous term), the term of the renewed licence is taken to start from the end of the previous term.
(7)If the renewed licence is decided after the previous term, the term of the renewed licence starts immediately after the end of the previous term, but—
(a)the conditions of the renewed licence do not start until the licence holder is given notice of them; and
(b)until the notice is given, the conditions of the licence being renewed apply to the renewed licence as if they were its conditions.

484Criteria for decisions

The matters that must be considered in deciding the renewal application and the provisions of the renewed licence include—
(a)if the licence being renewed is a pipeline licence and the applicant proposes to change the pipelines the subject of the licence—the matters mentioned in section 415 to the extent they are relevant to the change; or
(b)if the licence being renewed is a petroleum facility licence and the applicant proposes to change the facility—the appropriateness of the configuration, construction methods, and design for the change.

485Information notice about refusal

On refusal of the application, the applicant must be given an information notice about the decision to refuse.

486When refusal takes effect

A refusal of the application does not take effect until the end of the appeal period for the decision to refuse.

Chapter 5 Common petroleum authority provisions

Note—

See also chapter 1, part 5 (General provisions for petroleum authorities) and chapter 14, part 2 (Miscellaneous provisions for all authorities under Act).

Part 1 Security

487Operation and purpose of pt 1

(1)This part empowers the Minister to require, from time to time, the holder of a petroleum authority, or a person who has applied for a petroleum authority, to give the State security for the authority, or proposed authority.
(2)The security may be used to pay—
(a)any liability under this Act that the State incurs because of an act or omission of the holder; and
(b)unpaid petroleum royalty or annual licence fee or rent payable by the holder to the State; and
(c)other unpaid amounts payable under this Act by the holder to the State, including, for example, any of the following payable by the holder to the State—
(i)unpaid interest on unpaid petroleum royalty or annual rent;
(ii)unpaid civil penalty or royalty penalty amount;
(iii)any debt payable by the holder under section 587; and
(d)any compensation the State must pay under section 584 because of the exercise, or purported exercise, of a remedial power under section 580 in relation to the authority, whether or not the authority has ended.

488Power to require security for petroleum authority

(1)The Minister may require the holder of a petroleum authority, or a person who has applied for a petroleum authority, to give the State security for the authority, or proposed authority.
(2)The security must be—
(a)in the form prescribed under a regulation; and
(b)of at least the amount prescribed under a regulation.
(3)The requirement may be made at any time.
(4)However, the requirement does not take effect until the holder or applicant is given—
(a)for a requirement to give security in the form and amount prescribed under subsection (2)—notice of the requirement; or
(b)otherwise—an information notice about the decision to make the requirement.

489Minister’s power to require additional security

(1)The Minister may, at any time, require a petroleum authority holder to increase the amount of security given for the authority.
(2)However—
(a)if, because of an increase in the prescribed amount under section 488(2), the requirement is to increase the total security required to no more than the increased prescribed amount—the requirement must be made by notice to the holder; or
(b)if the requirement is to increase the total security required to more than the prescribed amount under section 488(2) when the requirement is made—
(i)subsections (3) to (6) must be complied with before making the requirement; and
(ii)the requirement does not take effect until the holder is given an information notice about the decision to make the requirement.
(3)The Minister must give the holder notice—
(a)stating the proposed increased amount of the security for the authority; and
(b)inviting the holder to lodge, within a stated reasonable period, submissions about the proposed increased amount.
(4)The stated period must end at least 20 business days after the holder is given the notice.
(5)Any submissions lodged by the holder within the stated period must be considered before deciding to make the requirement.
(6)In this section—
security given, includes security given or increased because of a requirement under subsection (1).

490Interest on security

The State may keep any interest that accrues on security given under this part for a petroleum authority.

491Power to use security

The State may use security given under this part for a petroleum authority, and any interest that accrues on the security, to make a payment mentioned in section 487(2) in relation to the authority.

492Replenishment of security

(1)This section applies, if—
(a)under section 491, all or part of the security for a petroleum authority has been used; and
(b)the authority is still in force.
(2)The Minister must give the authority holder a notice—
(a)stating how much of the security has been used; and
(b)directing the holder to, within 30 days after the giving of the notice, replenish the security for the authority up to the higher of the following—
(i)the amount prescribed under a regulation;
(ii)if the notice states that, under section 488, another amount is required—the other amount.

493Security not affected by change in authority holder

(1)This section applies if security for a petroleum authority is given under this part for an authority that is still in force and there is a subsequent change in the authority holder.
(2)Despite the subsequent change, the security, and any interest that accrues on it, continues for the benefit of the State and may be used under section 491.
(3)If the security is in the form of money, until the security is replaced or refunded it continues for the holder from time to time of the authority.

494Retention of security after petroleum authority ends

(1)Security, or part of security, given for a petroleum authority may be kept for 1 year after the authority has ended.
(2)Also, if a claim made for the use of the security has not been assessed, an appropriate amount of the security to meet the claim may be kept until the claim has been assessed.

Part 6 Ownership of pipelines, equipment and improvements

Division 1 Pipelines

538Application of div 1

This division applies for a pipeline constructed or operated under a petroleum tenure or pipeline licence.

Note—

See sections 33 (Incidental activities) and 110 (Construction and operation of petroleum pipelines).

539General provision about ownership while tenure or licence is in force for pipeline

(1)This section applies while the land on which the pipeline is constructed is, and continues to be, land in the area of the petroleum tenure or licence.
(2)The pipeline is taken to be the personal property of the holder of the petroleum tenure or pipeline licence.
(3)The pipeline remains the holder’s personal property despite—
(a)it having become part of the land; or
(b)the sale or other disposal of the land.
(4)The pipeline can not be—
(a)levied or seized in execution; or
(b)sold in exercise of a power of sale or otherwise disposed of by a process under a law of a State taken against the holder, or the owner of the land.
(5)Subsections (2) to (4) apply despite—
(a)an Act or law of a State; or
(b)a contract, covenant or claim of right under a law of a State.

540Ownership afterwards

(1)Section 539 applies and continues to apply for the pipeline, and for any subsequent pipeline licence for the pipeline, if the petroleum tenure or pipeline licence ends or the land on which the pipeline is constructed ceases to be in the area of the petroleum tenure or licence.
(2)However, the section is subject to—
(a)section 580; and
(b)any condition of the former petroleum tenure or any takeover or other condition of the former licence.
(3)Also, if the pipeline is decommissioned under section 559 the petroleum tenure or licence holder, or former petroleum tenure or licence holder, may dispose of it to anyone else.

Division 2 Equipment and improvements

541Application of div 2

(1)This division applies if—
(a)equipment or improvements are taken, constructed or placed on land in the area of a petroleum authority; and
(b)the equipment or improvements were taken, constructed or placed on the land for use for an authorised activity for the authority; and
(c)the authority continues in force.
(2)However, this division—
(a)does not apply for a pipeline; and

Note—

For pipelines, see sections 539 (General provision about ownership while tenure or licence is in force for pipeline) and 559 (Obligation to decommission pipelines).
(b)is subject to part 12.
(3)In this section—
equipment includes machinery and plant.
improvements
(a)does not include a petroleum well, water injection bore, water observation bore or water supply bore; but
(b)does include any works constructed in connection with the well or bore.

542Ownership of equipment and improvements

(1)While the equipment or improvements are on the land, they remain the property of the person who owned them immediately before they were taken, constructed or placed on the land, unless that person otherwise agrees.

Note—

See however section 560 (Obligation to remove equipment and improvements).
(2)However, for a petroleum well, water injection bore, water observation bore or water supply bore, subsection (1) is subject to chapter 2, part 10, divisions 3 and 4.
(3)Subsection (1) applies despite—
(a)the plant or equipment having become part of the land; or
(b)the sale or other disposal of the land.
(4)The equipment or improvements can not be—
(a)levied or seized in execution; or
(b)sold in exercise of a power of sale or otherwise disposed of by a process under a law of a State taken against the holder, or the owner of the land.
(5)This section applies despite—
(a)an Act or law of a State; or
(b)a contract, covenant or claim of right under a law of a State.

Part 7 Reporting

Division 1 Reporting provisions for petroleum tenures

Subdivision 1 General provisions

Note—

See also section 367 (Requirement for giving of copy of relinquishment report).

543Requirement of petroleum tenure holder to report outcome of testing

(1)This section applies if—
(a)an authority to prospect holder carries out testing under section 71A(1) or 71B(1); or
(b)a petroleum lease holder carries out testing under section 150A(1) or 150C(1).
(2)The holder must, within 40 business days after the testing ends, lodge a report stating the outcome of the test.

543ANotice about water injection bore, water observation bore or water supply bore to Water Act regulator

(1)This section applies if a person—
(a)drills a water injection bore, water observation bore or water supply bore; or
(b)converts a petroleum well to a water injection bore, water observation bore or water supply bore.
(2)The person must, within 60 business days after the day the drilling or conversion starts, give a notice to the Water Act regulator stating the information prescribed under a regulation about the bore.

545Relinquishment report by tenure holder

If part of the area of a petroleum tenure is relinquished as required or authorised under this Act, its holder must, within 6 months, lodge a report—
(a)describing—
(i)the authorised activities for the tenure carried out in the part; and
(ii)the results of the activities; and
(b)including other information prescribed under a regulation.

Note—

See chapter 2, part 1, division 4, subdivision 2 (Standard relinquishment condition and related provisions), sections 62(4) (Deciding application), 148 (Power to require relinquishment), 329 (Power to impose relinquishment condition) and 790 (Types of noncompliance action that may be taken).

Maximum penalty—200 penalty units.

546End of tenure report

If a petroleum tenure or water monitoring authority ends, the person who held the tenure or authority immediately before it ended must, within 6 months, lodge a report—
(a)including each of the following—
(i)a summary of all authorised activities for the tenure or authority that have been carried out since it took effect;
(ii)a summary of the results of the activities;
(iii)an index of all reports lodged, as required under this Act, in relation to the activities;
(iv)a summary of all significant hazards created to future safe and efficient mining that, under section 690(1)(f) or 706 or a regulation, are required to be reported;
(v)for each hazard mentioned in the summary under subparagraph (iv)—a reference to the report that contains details of the hazard;
(vi)information about the amount and location of all petroleum and water produced from the area of the tenure or authority;
(vii)any information related to information mentioned in subparagraph (vi) that may help the understanding of the amount and location of any remaining petroleum (including areas of ‘free gas’) and water from reservoirs produced;
(viii)any information required to be reported under this Act that has not been previously reported; and
(b)stating any other information prescribed under a regulation.

Maximum penalty—150 penalty units.

546AEnd of authority report for data acquisition authority or survey licence

(1)This section applies if a data acquisition authority or survey licence ends.
(2)The person who held the authority or licence immediately before it ended must, within 6 months, lodge a report about the matters relating to the former authority or licence as prescribed under a regulation.

Maximum penalty—150 penalty units.

Subdivision 2 Records and samples

547Requirement to keep records and samples

(1)A petroleum tenure holder must, for the period and in the way prescribed under a regulation, keep the records and samples about authorised activities carried out under the petroleum tenure as prescribed under a regulation.

Maximum penalty—500 penalty units.

(2)For subsection (1), the prescribed records may be—
(a)exploration data; or

Examples of exploration data—

seismic acquisition and processing reports
information obtained from airborne geophysical surveying
other information about petroleum or other materials at or below ground level
a well completion report for an exploration or appraisal well
(b)opinions, conclusions, technical consolidations and advanced interpretations based on exploration data.

548Requirement to lodge records and samples

(1)A person who, under section 547, is required to keep a record or sample, must, for the services of the State, lodge a copy of the record and a part of the sample within 6 months after the earlier of the following (the required time)—
(a)the day the record or sample was acquired or made;
(b)the day the relevant petroleum tenure ends.

Maximum penalty—500 penalty units.

(2)The copy of the record must—
(a)be—
(i)given electronically using the system for submission of reports made or approved by the chief executive; and
(ii)in the digital format made or approved by the chief executive; or
(b)if a way of giving the copy is prescribed under a regulation—be given in that way.
(3)The chief executive must ensure the system and a document detailing the digital format made or approved by the chief executive are available for inspection on the department’s website.
(4)The part of the sample must be lodged at the following office (the relevant office)—
(a)the office of the department for lodging the part of the sample, as stated in a gazette notice by the chief executive;
(b)if no office is gazetted under paragraph (a)—the office of the chief executive.
(5)If the chief executive gives the person a notice asking the person for more of the sample, the person must lodge it at the relevant office within the reasonable time stated in the notice (also the required time) unless the holder has a reasonable excuse.

Maximum penalty—500 penalty units.

(6)The chief executive may extend the required time by up to 1 year if—
(a)the person asks for the extension before the required time; and
(b)the chief executive is satisfied the extension is necessary.
(7)However, the extension must not end later than—
(a)for subsection (1)—6 months after the required time; or
(b)for subsection (5)—1 year after the required time.
(8)Without limiting subsection (1), the use to which the State may put the copy of the record and the part of the sample include the building of a publicly available database to facilitate petroleum exploration for the services of the State.

Subdivision 3 Releasing required information

549Meaning of required information

Required information, for a petroleum tenure, is information (in any form) about authorised activities carried out under the tenure that the tenure holder has lodged under this Act, including, for example—
(a)a sample; and
(b)data and other matters mentioned in section 553(2).

550Public release of required information

(1)The mere fact of the existence of a petroleum tenure is taken to be an authorisation from its holder to the chief executive to do the following, after the end of any confidentiality period prescribed under a regulation—
(a)publish, in the way prescribed under a regulation, required information for the tenure for public use, including, for example, to support petroleum exploration, production and development;
(b)on payment of a fee prescribed under a regulation, make it available to any person.
(2)Any confidentiality period prescribed under subsection (1) ceases if the information is about an authorised activity carried out solely in an area that is no longer in the area of the petroleum tenure.

Example—

The required information is a well completion report about a well drilled on particular land in the area of an authority to prospect. Subsection (1) ceases to apply if all of that land is relinquished under the relinquishment condition.
(3)The authorisation is not affected by the ending of the tenure.

551Chief executive may use required information

(1)The mere fact of the existence of a petroleum tenure is taken to be an authorisation from its holder to the chief executive to use required information for—
(a)purposes reasonably related to this Act that are required for the tenure; or
(b)the services of the State.
(2)The authorisation is not affected by the ending of the tenure.

Division 2 Other reporting provisions

552Obligation to lodge annual reports for pipeline or petroleum facility licence

(1)This section applies for a pipeline licence or petroleum facility licence.
(2)The holder of the licence must, within 2 months after each of its anniversary days, lodge a report for the 12 months that ended on the last anniversary day that includes the information about the licence as prescribed under a regulation.

Maximum penalty—150 penalty units.

(3)If the licence ends, the person who was its holder immediately before it ended must, within 2 months, lodge a report that includes the information prescribed under subsection (2) for the period from its last anniversary day to when it ended.

Maximum penalty—150 penalty units.

(4)In this section—
anniversary day, for a licence, means each day that is the anniversary of the day the licence took effect.

Editor’s note—

The omission of sections 552A and 552B is an uncommenced amendment—see 2018 Act No. 24 s 218.

552AObligation to lodge infrastructure report for petroleum lease

The holder of a petroleum lease must, on or before 1 September each year, lodge an infrastructure report about the lease for the preceding financial year that complies with section 552B.

552BContent requirements for infrastructure report for petroleum lease

An infrastructure report under section 552A must state the following information for the petroleum lease the subject of the report for the financial year to which the report relates—
(a)details of the authorised activities for the lease carried out in the area of the lease in the financial year;
(b)details of infrastructure and works constructed in the area of the lease in the financial year, including the location of the infrastructure and works;

Examples of infrastructure and works—

communication systems, compressors, powerlines, pumping stations, reservoirs, roads, evaporation or storage ponds and tanks or mobile and temporary camps
(c)any other information prescribed under a regulation.

553Power to require information or reports about authorised activities to be kept or given

(1)A regulation, or the chief executive, may, for the services of the State, require a petroleum authority holder to—
(a)keep stated information, or types of information, about authorised activities carried out under the petroleum authority; or

Example of a prescribed way of keeping information—

in a stated digital format
(b)lodge a notice giving stated information, or types of information, or stated reports at stated times or intervals about authorised activities carried out under the petroleum authority.

Example of a stated time—

for a report about a petroleum well, 6 months after its completion
(2)For subsection (1), the information or report required to be given or kept may be—
(a)exploration data; or

Examples of exploration data—

seismic acquisition, processing and interpretation reports
information obtained from airborne geophysical surveying
other information about petroleum or other materials at or below ground level
a well completion report for an exploration or appraisal well
(b)opinions, conclusions, technical consolidations and advanced interpretations based on exploration data.
(3)A notice under subsection (1)(b) may state—
(a)a format required for giving the information; and
(b)a degree of precision required for the giving of the information.
(4)A copy of a notice under subsection (1)(b) must be given to both the owners and occupiers of affected land in the way and at the times prescribed under a regulation.
(5)A person of whom a requirement under subsection (1) has been made must comply with the requirement.

Maximum penalty—100 penalty units.

(6)In this section—
affected land means land on which an authorised activity is, or has been, carried out.
information includes documents, records and samples.
services of the State has the same meaning that the term has in relation to the State of Queensland under the Copyright Act 1968 (Cwlth), section 183(1).

553AGiving copy of required notice by publication

(1)This section applies if, under section 553(4), a regulation requires a petroleum authority holder to give owners and occupiers of affected land a copy of a notice about authorised activities carried out under the petroleum authority.
(2)The chief executive may approve the petroleum authority holder giving the notice by publishing it in a stated way.
(3)The publication may relate to more than 1 notice.
(4)The chief executive may give the approval only if satisfied—
(a)if the notice is required to be given before an authorised activity is carried out—the publication is reasonably likely to adequately inform the owner or occupier of affected land at least 10 business days before the authorised activity is carried out; or
(b)if the notice is required to be given after an authorised activity is carried out—the publication is reasonably likely to adequately inform the owner or occupier of affected land.
(5)If the chief executive approves the giving of the notice under subsection (2)—
(a)the notice may state where a copy of further information referred to in the publication may be obtained, or inspected, free of charge; and
(b)the holder is not required to comply with section 553(4).
(6)In this section—
affected land means land on which an authorised activity is, or has been, carried out.

553BCopy of particular notices for chief executive (environment)

(1)This section applies if—
(a)a regulation requires a petroleum authority holder to lodge a notice under section 553(1)(b); and
(b)the petroleum authority holder lodges the notice as required.
(2)The chief executive must give the chief executive (environment) a copy of the notice.
(3)In this section—
chief executive (environment) means the chief executive of the department in which the Environmental Protection Act 1994 is administered.

Part 8 General provisions for conditions and authorised activities

Division 1 Other mandatory conditions for all petroleum authorities

554Operation of div 1

This division provides for general mandatory conditions for all petroleum authorities.

Notes—

1The following provisions also impose mandatory conditions on all petroleum authorities—
chapter 2, part 1, divisions 1 and 4
chapter 2, part 2, divisions 1 and 5
chapter 2, part 10
chapter 3, part 4, division 4
chapter 5.
2For what is a mandatory condition, see section 20(2).

555Compliance with land access code

A petroleum authority holder must—
(a)comply with the mandatory provisions of the land access code to the extent it applies to the holder; and
(b)ensure any other person carrying out an authorised activity for the petroleum authority complies with the mandatory provisions of the land access code.

557Obligation to comply with Act and prescribed standards

(1)The holder of a petroleum authority must—
(a)comply with this Act; and
(b)in carrying out an authorised activity for the authority, comply with—
(i)any standard that the authority provides for the activity; and
(ii)to the extent that the authority does not provide a standard for the activity—any standard prescribed under a regulation for carrying out the activity.
(2)In this section—
standard includes an Australian Standard, an international standard or a code or protocol.

Note—

For prescribed standards for GHG stream pipelines in the area of a GHG tenure, see the GHG storage Act, section 331.

558Obligation to survey if Minister requires

(1)The Minister may, by notice to the holder of a petroleum authority, require the holder to survey or resurvey the area of the authority within a stated reasonable period.
(2)The holder must cause the survey or resurvey to be carried out by a person registered as a cadastral surveyor under the Surveyors Act 2003.
(3)The holder must pay any costs incurred in complying with the notice.

Division 2 Provisions for when authority ends or area reduced

559Obligation to decommission pipelines

(1)The holder of a petroleum authority must, before the decommissioning day, decommission, in the way prescribed under a regulation, any pipeline in the area of the authority.

Maximum penalty—2,000 penalty units.

Notes—

1See also section 539(3) and (4) (General provision about ownership while tenure or licence is in force for pipeline).
2If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(2)However, subsection (1)—
(a)does not apply if the pipeline was constructed or operated under another petroleum authority; and
(b)ceases to apply if the operation of the pipeline becomes an authorised activity for another petroleum authority.
(3)Also, subsection (1) does not apply for a pipeline if—
(a)the petroleum authority is a pipeline licence; and
(b)the licence is surrendered or otherwise ends for the purpose of the pipelines the subject of the licence becoming the subject of another pipeline licence.
(4)In this section—
decommissioning day means the later of the following days—
(a)the earlier of the following—
(i)the day the authority ends;
(ii)the day the land ceases to be in the area of the authority;
(b)if, before the day provided for under paragraph (a), the Minister fixes a day—that day;
(c)if, before a day fixed under paragraph (b), the Minister fixes a later day—that day.

560Obligation to remove equipment and improvements

(1)This section applies for equipment or improvements in the area of a petroleum authority or on access land for the authority that are being, or have been, used for an authorised activity for the authority.
(2)However, this section does not apply for—
(a)a petroleum well, pipeline, water injection bore, water observation bore or water supply bore; or

Notes—

1For petroleum wells, water injection bores, water observation bores and water supply bores, see chapter 2, part 10.
2For pipelines, see sections 539 and 559.
(b)equipment or improvements on land that, under section 101, ceases to be in the area of an authority to prospect.
(3)The authority holder must, before the removal day, remove the equipment or improvements from the land, unless the owner of the land otherwise agrees.

Maximum penalty—1,000 penalty units.

Note—

If a corporation commits an offence against this provision, an executive officer of the corporation may be taken, under section 814A, to have also committed the offence.
(4)To remove any doubt, it is declared that subsection (3) applies even if the equipment or improvements are not owned by the holder.

Note—

For ownership of the equipment or improvements, see section 542.
(5)In this section—
equipment includes machinery and plant.
removal day means the later of the following days—
(a)the earlier of the following—
(i)the day the authority ends;
(ii)the day the land ceases to be in the area of the authority;
(b)if, before the day provided for under paragraph (a), the Minister fixes a day—that day;
(c)if, before a day fixed under paragraph (b), the Minister fixes a later day—that day.

561Authorisation to enter to facilitate compliance with s 555 or this division

(1)The Minister may, by notice, authorise a former holder of a petroleum authority to enter any of the following land to comply with, or remedy a contravention of, section 555 or this division—
(a)the land to which section 555 or this division applies (primary land);
(b)any other land (secondary land) necessary or desirable to cross for access to the primary land.
(2)Sections 20 and 557 and the Common Provisions Act, chapter 3, parts 2, 3 and 7 apply to the former holder for the purpose of the authorisation as if—
(a)the authority were still in force (the notional authority); and
(b)the former holder is the holder of the notional authority; and
(c)the primary land and any secondary land are in the area of the notional authority; and
(d)the compliance or the remedying of the contravention were authorised activities for the notional authority.
(3)However, the power under this section does not include the power to enter a structure, or a part of a structure, used for residential purposes without the consent of the occupier of the structure or part of the structure.
(4)If the former holder intends to enter the land and any occupier of the land is present at the land, the former holder also must show, or make a reasonable attempt to show, the occupier the former holder’s authorisation under this section.

Division 3 Provisions for authorised activities

562General restriction on carrying out authorised activities

The carrying out of an authorised activity for a petroleum authority is subject to—
(a)the provisions of the authority; and
(b)compliance with the authority holder’s rights and obligations under this chapter and chapters 2, 3, 4 and 9.

563Who may carry out authorised activity for petroleum authority holder

(1)An authorised activity for a petroleum authority may be carried out for the holder by any of the following persons acting within the scope of the person’s authority from the holder—
(a)if the holder is a corporation—its officers and employees;
(b)the holder’s employees or partners who are individuals;
(c)agents of, or contractors for, the holder;
(d)officers and employees of, or agents of, or contractors for, agents or contractors mentioned in paragraph (c).

Example—

A petroleum lease holder may also enter into a coordination arrangement under which another party to the arrangement may carry out an authorised activity for the lease. See section 234(1).
(2)The authority may be express, or implied from—
(a)the nature of the relationship between the person and the holder; or
(b)the duties the person performs for the holder; or
(c)the duties a person mentioned in subsection (1) customarily performs.

563ALimitation of owner’s or occupier’s tortious liability for authorised activities

(1)This section applies to an owner or occupier of land in the area of a petroleum authority if—
(a)someone else carries out an authorised activity for a petroleum authority on the land; or
(b)someone else carries out an activity on the land and, in doing so, purports to be carrying out an authorised activity for a petroleum authority.
(2)The owner or occupier is not civilly liable to anyone else for a claim based in tort for damages relating to the carrying out of the activity.
(3)However, subsection (2) does not apply to the extent the owner or occupier, or someone else authorised by the owner or occupier, caused, or contributed to, the harm the subject of the claim.
(4)This section applies—
(a)despite any other Act or law; and
(b)even though this Act or the petroleum authority prevents or restricts the carrying out of the activity as an authorised activity for the authority.
(5)Subject to subsection (2), in this section, the terms claim, damages and harm have the same meaning that they have under the Civil Liability Act 2003.

Part 11 Surrenders

574AAuthority to prospect can not be surrendered

An authority to prospect can not be surrendered.

575Requirements for surrendering another type of petroleum authority

(1)The holder of a petroleum authority, other than an authority to prospect, may surrender all or part of the area of the authority only if, under this part—
(a)an application has been made for approval of the surrender; and
(b)the surrender has been approved.
(2)In this section—
surrender, for a petroleum authority, does not include a relinquishment of an area if the relinquishment is required or authorised under—
(a)section 148; or
(b)a relinquishment condition for the authority; or
(c)a relinquishment requirement under section 791.

576Requirements for making surrender application

(1)A surrender application must be—
(a)in the approved form; and
(b)accompanied by the fee prescribed under a regulation.
(2)A surrender application must also be accompanied by a report by the applicant, containing the information prescribed under a regulation about—
(a)authorised activities for the authority carried out on the area the subject of the application; and
(b)the results of the activities.

Maximum penalty for subsection (2)—150 penalty units.

577Notice of application required for particular pipeline licences

(1)This section applies only if the petroleum authority is a pipeline licence through which fuel gas is transported.
(2)A surrender application can not be made for the authority unless the holder has, at least 3 months before the application is lodged, lodged a notice of the holder’s intention to make the application (an application notice).
(3)The application notice must state the reasons for the proposed surrender.
(4)The chief executive may, after the lodging of the application notice, give the holder notice requiring the holder to give the chief executive further relevant written information by a reasonable stated day.
(5)The holder must comply with the chief executive’s notice unless the holder has a reasonable excuse.

Maximum penalty for subsection (5)—500 penalty units.

578Deciding application

(1)The Minister may approve a surrender only if—
(a)up to the day the application was made, the holder had submitted all reports required to be submitted under this Act; and
(b)the Minister considers the surrender is not against the public interest; and
(c)for a surrender of all of the area of the petroleum authority—all of the relevant environmental authority has been cancelled or surrendered; and
(d)for a surrender of part the area of the petroleum authority—the relevant environmental authority has been amended or partially surrendered in a way that reflects the partial surrender of the petroleum authority.
(2)The matters that must be considered in deciding whether to approve a surrender include the extent to which the applicant has complied with the conditions of the authority.
(3)If the application is for part of the area of a petroleum authority, the surrender may be approved subject to the applicant’s written agreement to the Minister amending the conditions applying to the rest of the area of the authority in a stated way that the Minister considers appropriate.

579Notice and taking effect of decision

(1)On approval of a surrender, the applicant must be given notice of the decision.
(2)A surrender takes effect on the day after the decision is made.
(3)The applicant must be given an information notice about—
(a)a decision to refuse to approve a surrender; or
(b)a decision to approve a surrender subject to the applicant’s written agreement to the Minister amending the petroleum authority in a stated way.
(4)However, subsection (3) does not apply for an amendment mentioned in subsection (3)(b) if the applicant has agreed in writing to the amendment.

Part 12 Enforcement of end of authority and area reduction obligations

580Power of authorised person to ensure compliance

(1)This section applies if the holder, or former holder, of a petroleum authority has not complied with section 292, 559 or 560 in relation to land (the primary land).
(2)A person authorised (the authorised person) by the chief executive may, by complying with section 581, exercise the following powers (remedial powers)—
(a)enter the primary land and do all things necessary to ensure the requirement is complied with;
(b)enter any other land (secondary land) necessary or desirable to cross for access to the primary land.
(3)However, remedial powers do not include power to enter a structure, or a part of a structure, used for residential purposes without the consent of the occupier of the structure or part of the structure.
(4)The authorisation—
(a)must be written; and
(b)may be given on conditions the Minister considers appropriate.

581Requirements for entry to ensure compliance

(1)Remedial powers may be exercised in relation to the primary or secondary land under section 580 only if a following person is given notice of the proposed entry at least 10 business days before the proposed entry—
(a)if the land has an occupier—any occupier of the land;
(b)if the land does not have an occupier—its owner.
(2)The notice must—
(a)identify the authorised person; and
(b)describe the land; and
(c)state—
(i)that the authorised person has, under this section, been authorised to enter the land; and
(ii)the purpose of the entry; and
(iii)the period of the entry.
(3)The chief executive may approve the giving of the notice by publishing it in a stated way.
(4)The chief executive may give the approval only if satisfied the publication is reasonably likely to adequately inform the person to whom the notice is required to be given of the proposed entry.
(5)If the authorised person intends to enter the land and any occupier of the land is present at the land, the person also must show, or make a reasonable attempt to show, the occupier the person’s authorisation under this section.

582Duty to avoid damage in exercising remedial powers

In exercising remedial powers, a person must take all reasonable steps to ensure the person causes as little inconvenience, and does as little damage, as is practicable.

583Notice of damage because of exercise of remedial powers

(1)If a person exercising remedial powers damages land or something on it, the person must give the owner and any occupier of the land notice of the damage.
(2)If for any reason it is not practicable to comply with subsection (1), the person must—
(a)leave the notice at the place where the damage happened; and
(b)ensure it is left in a conspicuous place and in a reasonably secure way.
(3)The notice must state—
(a)particulars of the damage; and
(b)that the owner or occupier may claim compensation under section 584 from the State.

584Compensation for exercise of remedial powers

(1)This section applies if an owner or occupier of land (the claimant) suffers a cost, damage or loss because of the exercise, or purported exercise, of remedial powers.
(2)Compensation is payable to the claimant by the State for the cost, damage or loss.
(3)The compensation may be claimed and ordered in a proceeding brought in a court of competent jurisdiction.
(4)The court may order the compensation only if it is satisfied it is just to make the order in the circumstances of the particular case.

585Ownership of thing removed in exercise of remedial powers

(1)This section applies if—
(a)remedial powers are exercised in relation to land; and
(b)in the exercise of the powers a thing is removed from the land; and
(c)immediately before the removal, the thing was the property of—
(i)the holder, or former holder, of a petroleum authority in relation to whom the powers were exercised; or
(ii)an agent of, or contractor for, the holder.
(2)On the removal, the thing becomes the property of the State.
(3)The State may deal with the thing as it considers appropriate, including, for example, by destroying it or giving it away.
(4)The chief executive may deal with the thing for the State.
(5)If the State sells the thing, the State may, after deducting the costs of the sale, return the net proceeds of the sale to the former owner of the thing.

586Recovery of costs of and compensation for exercise of remedial power

(1)The State may recover from the responsible person as a debt any—
(a)reasonable costs the State, or an authorised person under section 580, incurs in exercising a remedial power; and
(b)compensation payable by the State under section 584 in relation to the exercise of the remedial power.

Note—

See also section 841 (Additional orders that may be made on conviction).
(2)However, in any proceeding to recover the costs, any relevant net proceeds of sale mentioned in section 585 must be deducted from the amount claimed for the costs.
(3)In this section—
relevant net proceeds of sale means proceeds of sale under which the thing sold was the property of the responsible person immediately before its removal under section 585.
responsible person means the holder, or former holder, of the petroleum authority in relation to which the remedial powers were exercised.

Part 13 Miscellaneous provisions

587Minister’s power to ensure compliance by petroleum authority holder

(1)This section applies if—
(a)the holder of a petroleum authority has not complied with a requirement, under this Act, of the holder; and
(b)no other provision of this Act allows someone other than the holder to ensure compliance with the requirement.
(2)The Minister may take any action the Minister considers appropriate to ensure all or part of the requirement is complied with if—
(a)subsections (3) and (4) have been complied with; or
(b)the holder has agreed to the Minister taking the action.
(3)The Minister must give the holder notice—
(a)stating the requirement and the action the Minister proposes to take; and
(b)inviting the holder to lodge, within a stated reasonable period, submissions about the proposed action.
(4)Any submissions lodged by the holder within the stated period must be considered before deciding to take the action.
(5)A decision to take the action does not take effect until the holder is given an information notice about the decision.
(6)The State may recover from the holder as a debt any reasonable costs it incurs in the exercise of the power under subsection (2).

Note—

See also section 841 (Additional orders that may be made on conviction).

588Interest on amounts owing to the State other than for petroleum royalty

(1)This section does not apply in relation to petroleum royalty.

Note—

For interest on unpaid petroleum royalty, see section 602.
(2)Interest is payable to the State on any amount owing under this Act by anyone to the State and unpaid from time to time after the relevant day.

Examples of an amount that may be owing under this Act—

annual or other rent, a civil penalty for nonpayment of annual rent or an annual licence fee
(3)The interest accrues daily at the rate prescribed under a regulation on the unpaid amount for the period starting on the day immediately after the amount became payable and ending on the day the amount owing on which interest is payable is paid in full, both days inclusive.
(4)Any amount received in payment of the unpaid amount or the interest must first be applied in payment of the interest.
(5)Subsection (4) applies despite any order or direction of the payer.
(6)In this section—
relevant day means the following—
(a)for an amount for annual or other rent or a civil penalty for nonpayment of annual rent—the day that is 3 months after the last day for payment of the rent or civil penalty;
(b)for another amount—the day the amount becomes owing.

589Recovery of unpaid amounts

(1)If a provision of this Act requires a petroleum authority holder to pay the State an amount (including interest) the State may recover the amount from the holder as a debt.
(2)In this section—
holder includes a former holder of the authority in relation to which the remedial powers were exercised.

Chapter 6 Petroleum royalty

Part 1 Imposition of petroleum royalty

590Imposition of petroleum royalty on petroleum producers

(1)A petroleum producer must pay the State petroleum royalty for petroleum that the producer produces.
(2)The petroleum royalty—
(a)must be paid on or before the time prescribed under a regulation; and
(b)is payable at the rate prescribed under a regulation on the value of the petroleum at the prescribed time.
(3)The value of petroleum for the petroleum royalty is the value provided for under a regulation or worked out in the way prescribed under a regulation.
(4)This section is subject to any exemption under section 591 or 591A.

591General exemptions from petroleum royalty

(1)Petroleum produced on or after 31 December 2004 is exempt from the petroleum royalty if the Minister is satisfied—
(a)the petroleum was unavoidably lost before it could be measured; or
(b)the petroleum was used—
(i)if it was produced under a petroleum tenure or 1923 Act petroleum tenure—in the production of petroleum from that tenure; or
(ii)if the petroleum is coal seam gas—by the petroleum producer for mining the coal that produced the gas; or
(c)that, before the petroleum was produced in the State, it was produced outside the State and injected or reinjected into a natural underground reservoir in the State; or
(d)the petroleum is petroleum on which petroleum royalty has already been paid; or
(e)the petroleum is coal seam gas on which royalty under the Mineral Resources Act is payable; or
(f)the petroleum was flared or vented as part of testing for the presence of petroleum during the drilling of a well.
(2)However—
(a)subsection (1) ceases to apply if, under chapter 2, part 6, division 3, the petroleum becomes the property of the State; and
(b)subsection (1)(c) does not apply if, after the petroleum royalty was paid, property in the petroleum is taken to have passed to the State under chapter 2, part 6, division 3.
(3)Despite subsection (1)(b)(ii), if the first underground mining of coal in a mining lease commenced before 31 December 2004, petroleum produced on the mining lease and used beneficially for mining under the mining lease is exempt from petroleum royalty.
(4)However, subsection (5) applies if the petroleum mentioned in subsection (1)(b)(ii) or subsection (3) is used to generate electricity that is—
(a)partly used for mining under the mining lease; and
(b)partly used for another purpose.
(5)Subsection (1)(b)(ii) and subsection (3) apply only to the proportion of the petroleum that is equivalent to the proportion of the electricity generated from the petroleum that is used for mining under the mining lease.
(6)In this section—
petroleum tenure includes a 1923 Act petroleum tenure.

591AExemption for production testing

(1)This section applies if—
(a)under section 71A or 150A, a petroleum tenure holder carries out production testing in relation to a particular petroleum well (the relevant well); or
(b)under a 1923 Act petroleum tenure, the tenure holder carries out production testing in relation to a particular petroleum well (also the relevant well).
(2)If—
(a)petroleum produced from the relevant well is coal seam gas or natural gas; and
(b)the gas is flared or vented; and
(c)the gas is, within the period provided for under subsection (3) produced as part of the production testing;

petroleum royalty is only payable on the amount of the petroleum flared or vented during the period that is more than 3,000,000m3.

(3)For subsection (2), the period is the shorter of the following—
(a)the sum of all periods after 31 December 2004 for which, under section 71A or 150A, or for a 1923 Act petroleum tenure, under the tenure, the production testing from the relevant well may be carried out;
(b)13 months from the later of the following—
(i)the start of the production testing from the relevant well;
(ii)if the production testing had started before 31 December 2004, 31 December 2004.

592Minister may decide measurement if not made or royalty information not given

(1)If—
(a)the measurement of, or information about, petroleum is required for the purpose of a royalty return; and
(b)the measurement has not been made or the information has not been given or lodged as required under this Act (whether or not a royalty return has been lodged);

the Minister may decide what the required measurement or information is.

Note—

See also chapter 8 (Petroleum and fuel gas measurement) and section 801 (Petroleum producer’s measurement obligations).

(2)The decided measurement or information is taken to be the required measurement or information.
(3)On the making of the decision, the relevant petroleum producer must be given an information notice about the decision.
(4)To remove any doubt, it is declared that the decision does not relieve anyone of an obligation under this Act to make the measurement or give or lodge information.

Part 2 Royalty administration

Division 1 Preliminary

592ADefinitions for pt 2

In this part—
assessment means a determination made under this part of a royalty-related amount payable by a petroleum producer for a royalty return period or annual return period, for which an assessment notice is given, and includes a reassessment.
assessment notice see section 599E(1).
default assessment see section 599B(2).
original assessment, for a royalty-related amount payable by a petroleum producer for a period, means the first assessment by the Minister of the royalty-related amount payable by the producer for the period.
reassessment means a determination made under this part of a variation of the royalty-related amount payable by a petroleum producer for a period, for which an assessment notice is given.
royalty penalty amount see section 601(1).
royalty-related amount means any of the following amounts—
(a)an amount of petroleum royalty;
(b)an amount of unpaid royalty interest;
(c)a royalty penalty amount;
(d)an amount of a civil penalty imposed under a regulation under section 604A;
(e)if a prescribed fee must accompany a royalty return under section 595(3)—the amount of the prescribed fee.

Division 2 Royalty returns

593Application of div 2

(1)This division applies to a petroleum producer for each royalty return period in which—
(a)the producer produces petroleum; or
(b)petroleum that has, at any time, been produced by the producer is—
(i)disposed of by the producer, by supplying it to anyone else, flaring or venting it or otherwise; or
(ii)stored for the producer in a natural underground reservoir.
(2)This division applies whether or not the producer is or was, under part 1, required to pay petroleum royalty for the production.

594Obligation to lodge royalty return

(1)The producer must, on or before the last business day of the month immediately following the royalty return period in which the petroleum was produced, disposed of or stored (the ordinary due date), or an earlier day required by the Minister under subsections (2) and (3), lodge a written return containing the information prescribed under a regulation about the production, disposal or storage at—
(a)the office of the department for lodging royalty returns, as stated in a gazette notice by the chief executive; or
(b)if no office is gazetted under paragraph (a)—the office of the chief executive.
(2)Subsection (3) applies if the Minister considers that, for the protection of the public revenue, a royalty return should be lodged on a day that is earlier than the ordinary due date.