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

1Short title

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

Editor’s notes—

1Uncommenced amendments to the following provisions have been included in this indicative reprint—

•sections 18, 670, 708A, 730, 731, 733, 734A, 734AA, 789, 790, 814, 814A, 834, 998–1000

•chapter 9, part 6, division 3, subdivisions 1–2 headings, chapter 9, part 6A

•schedules 1 and 2.

See 2019 Act No. 7 pt 12 div 3 (other than ss 277–283), sch 1 (other than amendments 1–4).

2Uncommenced amendments to the following provisions have been included in this indicative reprint—

•sections 35, 41, 42, 42A, 46, 47, 48, 51, 52, 53, 56, 57, 59, 62, 64A, 65, 66, 68, 70, 78, 84, 85, 89, 90, 105, 107A, 107D, 168, 173, 332, 352

•chapter 2, part 1, division 3, subdivision 1 and subdivision 7, chapter 2, part 1, division 8, subdivision 2A, chapter 2, part 2, division 7, subdivision 1A, chapter 15, part 24

•schedules 1, 2.

See 2019 Act No. 17 ch 5 pt 2.

3Proposed amendments included in the Resources Safety and Health Queensland Bill 2019 to the following provisions have been incorporated into this indicative reprint—

•sections 734AC, 735, 737, 738, 741, 742, 773, 774, 813, 817, 834, 837, 837A–837C, 841A, 851A, 857

•chapter 15, part 26

•schedule 2.

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.

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.

9Definitions

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

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.;

(j)a gas device approval authority granted under chapter 9, part 6A, division 2.

(2)The authorities, other than a gas work licence, gas work authorisation or authorisationgas device approval authority, 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.

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.

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.

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.

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.

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.

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)(h)(i) does not limit the Minister’s power to decide conditions of the authority if it is granted.

(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.

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.

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.

(4)Subsection (3) does not limit or otherwise affect section 42(3)(a) or (3A).

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.

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.

46Operation of sdiv 2subdivision 2

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.

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.

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).

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.

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.

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) have been complied with.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 of 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.

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).

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 66A, 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;

(cb)the mere declaration of the sub-blocks as a potential commercial area for the authority;

(dc)sub-blocks the subject of an application for a petroleum lease or potential commercial area;

(ed)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.

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.

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.

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).

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).

Note—

See sections 35(2)(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.

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).

Note—

See section 85.

(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.

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.

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.

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).

Note—

See sections 35(2)(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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

(5)The Minister may give the holder of the petroleum lease a notice requiring the holder to give the Minister, within the reasonable period stated in the notice, information the Minister reasonably requires to decide whether to approve the proposed plan.

(6)If the holder does not comply with the requirement, the Minister may refuse to approve 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.

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).

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.

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).

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.

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.

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).

Note—

See sections 35(2)(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.

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.

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.

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).

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.

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.

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.

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.

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.

204Purpose of pt 6

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

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.

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.

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.

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.

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.

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.

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.