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This is a Bill, not an Act. For current law, see the Acts databases.
Queensland
PETROLEUM AND GAS
(PRODUCTION AND SAFETY)
BILL 2004
Queensland
PETROLEUM AND GAS (PRODUCTION
AND SAFETY) BILL 2004
TABLE OF PROVISIONS
Section Page
CHAPTER 1--PRELIMINARY
PART 1--INTRODUCTION
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
PART 2--PURPOSE AND APPLICATION OF ACT
3 Purpose of Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
4 Act binds all persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
5 Application of Act to coastal waters of the State . . . . . . . . . . . . . . . . . . . . . 56
6 Relationship with Mineral Resources Act . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
7 Act does not affect other rights or remedies . . . . . . . . . . . . . . . . . . . . . . . . . 58
8 Native title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
PART 3--INTERPRETATION
Division 1--Dictionary
9 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Division 2--Key definitions
10 Meaning of "petroleum" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
11 Meaning of "LPG" and "fuel gas" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
12 What is a "prescribed storage gas" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
13 What is a "natural underground reservoir" . . . . . . . . . . . . . . . . . . . . . . . . . . 61
14 What is "exploring" for petroleum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
15 When petroleum is "produced" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
16 What is a "pipeline" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
17 What is a "petroleum facility". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
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18 Types of authority under Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
19 Who is an "eligible person". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
20 What are the "conditions" of a petroleum authority . . . . . . . . . . . . . . . . . . . 65
21 What are the "provisions" of a petroleum authority . . . . . . . . . . . . . . . . . . . 65
22 What is an "authorised activity" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
23 What is a "work program" for an authority to prospect . . . . . . . . . . . . . . . . 66
24 What is a "development plan" for a petroleum lease . . . . . . . . . . . . . . . . . . 67
Division 3--Other matters relating to interpretation
25 Notes in text. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
PART 4--PROPERTY IN PETROLEUM
26 Petroleum the property of the State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
27 Petroleum reservation in land grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
28 Property in petroleum produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
PART 5--GENERAL PROVISIONS FOR PETROLEUM
AUTHORITIES
29 Graticulation of earth's surface into "blocks" and "sub-blocks" . . . . . . . . . 69
30 Petroleum authority does not create an interest in land. . . . . . . . . . . . . . . . . 70
CHAPTER 2--PETROLEUM TENURES AND RELATED
MATTERS
PART 1--AUTHORITIES TO PROSPECT
Division 1--Key authorised activities
31 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
32 Exploration and testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
33 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Division 2--Obtaining authority to prospect
Subdivision 1--Preliminary
34 Operation of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Subdivision 2--Competitive tenders
35 Call for tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
36 Right to tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
37 Requirements for making tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
38 Right to terminate call for tenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
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Subdivision 3--Deciding tenders
39 Process for deciding tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
40 Provisions for preferred tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
41 Deciding whether to grant authority to prospect . . . . . . . . . . . . . . . . . . . . . . 77
42 Provisions of authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
43 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
44 Notice to unsuccessful tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Division 3--Work programs
Subdivision 1--Function and purpose of work program
45 Function and purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Subdivision 2--Requirements for proposed initial work programs
46 Operation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
47 Program period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
48 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Subdivision 3--Criteria for deciding whether to approve proposed initial
work programs
49 Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Subdivision 4--Requirements for proposed later work programs
50 Operation of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
51 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
52 Program period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
53 Implementation of evaluation program for potential commercial area . . . . . 83
54 Later work programs for proposed new authorities . . . . . . . . . . . . . . . . . . . 83
Subdivision 5--Approval of proposed later work programs
55 Application of sdiv 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
56 Authority taken to have work program until decision on whether
to approve proposed work program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
57 Deciding whether to approve proposed program . . . . . . . . . . . . . . . . . . . . . 84
58 Steps after, and taking effect of, decision . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Subdivision 6--Amending work programs
59 Restrictions on amending work program . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
60 Applying for approval to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
61 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
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62 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
63 Steps after, and taking effect of, decision . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Division 4--Key mandatory conditions for authorities to prospect
Subdivision 1--Preliminary
64 Operation of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Subdivision 2--Relinquishment condition and related provisions
65 Relinquishment condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
66 Part usually required to be relinquished . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
67 Sub-blocks that can not be counted towards relinquishment . . . . . . . . . . . . 90
68 Adjustments for sub-blocks that can not be counted. . . . . . . . . . . . . . . . . . . 90
69 Adjustment for particular potential commercial areas . . . . . . . . . . . . . . . . . 91
70 Relinquishment must be by blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
71 Ending of authority to prospect if all of it area relinquished. . . . . . . . . . . . . 91
Subdivision 3--Other mandatory conditions
72 Restriction on flaring or venting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
73 Permitted period for production or storage testing . . . . . . . . . . . . . . . . . . . . 92
74 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 93
75 Petroleum royalty and annual rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
76 Civil penalty for nonpayment of annual rent. . . . . . . . . . . . . . . . . . . . . . . . . 93
77 Requirement to have work program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
78 Compliance with exploration activities in work program . . . . . . . . . . . . . . . 94
79 Obligation to lodge proposed later work program . . . . . . . . . . . . . . . . . . . . 94
80 Consequence of failure to comply with notice to lodge proposed
later work program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Division 5--Renewals
81 Conditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
82 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
83 Continuing effect of authority for renewal application . . . . . . . . . . . . . . . . 98
84 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
85 Provisions and term of renewed authority. . . . . . . . . . . . . . . . . . . . . . . . . . . 100
86 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
87 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
88 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
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Division 6--Potential commercial areas
89 Applying for potential commercial area . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
90 Deciding potential commercial area application . . . . . . . . . . . . . . . . . . . . . . 103
91 Inclusion of evaluation program in work program . . . . . . . . . . . . . . . . . . . . 103
92 Term of declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
93 Extension of term of declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
94 Potential commercial area still part of authority . . . . . . . . . . . . . . . . . . . . . . 105
Division 7--Provisions to facilitate transition to petroleum lease
95 Application of div 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
96 Ministerial direction to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . 106
97 Taking proposed action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Division 8--Miscellaneous provisions
Subdivision 1--Area provisions
98 Area of authority to prospect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
99 Minister's power to decide excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
100 Minister may add excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
101 Area of authority to prospect reduced on grant of petroleum lease . . . . . . . 110
102 Effect of ending of declaration of potential commercial area . . . . . . . . . . . . 110
Subdivision 2--Dividing authorities to prospect
103 Applying to divide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
104 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
105 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
106 Provisions of new authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
107 Steps after deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
PART 2--PETROLEUM LEASES
Division 1--Key authorised activities
Subdivision 1--General provisions
108 Operation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
109 Exploration, production and storage activities . . . . . . . . . . . . . . . . . . . . . . . 115
110 Petroleum pipeline and water pipeline construction and operation . . . . . . . 116
111 Petroleum processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
112 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
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Subdivision 2--Provisions for coextensive natural underground
reservoirs
113 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
114 Coordination arrangement may be made about mining or production
from reservoir . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
115 Restriction on petroleum production from reservoir . . . . . . . . . . . . . . . . . . . 118
116 Dispute resolution by tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Division 2--Transition from authority to prospect to petroleum lease
Subdivision 1--Applying for petroleum lease
117 Who may apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
118 Requirements for making ATP-related application . . . . . . . . . . . . . . . . . . . . 120
119 Continuing effect of authority to prospect for ATP-related application . . . . 121
Subdivision 2--Deciding ATP-related applications
120 Right to grant if requirements for grant met . . . . . . . . . . . . . . . . . . . . . . . . . 122
121 Requirements for grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
122 Exception for particular relevant arrangements. . . . . . . . . . . . . . . . . . . . . . . 123
123 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
124 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
125 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Division 3--Obtaining petroleum lease by competitive tender
Subdivision 1--Preliminary
126 Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Subdivision 2--Calls for tenders
127 Call for tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
128 Right to tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
129 Right to terminate call for tenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Subdivision 3--Deciding tenders
130 Process for deciding tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
131 Provisions for preferred tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
132 Deciding whether to grant petroleum lease. . . . . . . . . . . . . . . . . . . . . . . . . . 129
133 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
134 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
135 Notice to unsuccessful tenderers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
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Division 4--Development plans
Subdivision 1--Function and purpose of development plan
136 Function and purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Subdivision 2--Requirements for proposed initial development plans
137 Operation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
138 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
139 Plan period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
140 Storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Subdivision 3--Criteria for deciding whether to approve proposed initial
development plans
141 Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Subdivision 4--Requirements for proposed later development plans
142 Operation of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
143 General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
144 Later development plans for proposed new leases . . . . . . . . . . . . . . . . . . . . 134
Subdivision 5--Approval of proposed later development plans
145 Application of sdiv 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
146 Petroleum lease taken to have development plan until decision on
whether to approve proposed development plan . . . . . . . . . . . . . . . . . . . . . . 135
147 Deciding whether to approve proposed plan . . . . . . . . . . . . . . . . . . . . . . . . . 135
148 Power to require relinquishment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
149 Steps after, and taking effect of, decision . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Division 5--Key mandatory conditions for petroleum leases
150 Operation of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
151 Restriction on flaring or venting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
152 Permitted period for production or storage testing . . . . . . . . . . . . . . . . . . . . 139
153 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 139
154 Obligation to commence production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
155 Petroleum royalty and annual rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
156 Civil penalty for nonpayment of annual rent. . . . . . . . . . . . . . . . . . . . . . . . . 140
157 Requirement to have development plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
158 Compliance with development plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
159 Obligation to lodge proposed later development plan. . . . . . . . . . . . . . . . . . 141
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160 Consequence of failure to comply with notice to lodge proposed later
development plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Division 6--Renewals
161 Conditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
162 Requirements for making renewal application . . . . . . . . . . . . . . . . . . . . . . . 144
163 Continuing effect of lease for renewal application . . . . . . . . . . . . . . . . . . . . 145
164 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
165 Provisions and term of renewed lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
166 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
167 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Division 7--Miscellaneous provisions
Subdivision 1--Area and term of petroleum lease
168 Area of petroleum lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
169 Minister's power to decide excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
170 Minister may add excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Subdivision 2--Dividing petroleum leases
171 Applying to divide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
172 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
173 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
174 Provisions of new leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
175 Steps after deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
PART 3--DATA ACQUISITION AUTHORITIES
Division 1--Obtaining data acquisition authority
176 Who may apply for data acquisition authority . . . . . . . . . . . . . . . . . . . . . . . 154
177 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
178 Deciding application for data acquisition authority . . . . . . . . . . . . . . . . . . . 155
179 Notice of refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Division 2--Provisions for data acquisition authorities
180 Key authorised activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
181 Additional condition of relevant petroleum tenure . . . . . . . . . . . . . . . . . . . . 156
182 Authority holder is the relevant petroleum tenure holder from time to time 157
183 Authority ends if relevant petroleum tenure ends . . . . . . . . . . . . . . . . . . . . . 157
184 Relationship with subsequent petroleum tenure . . . . . . . . . . . . . . . . . . . . . . 157
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Petroleum and Gas (Production and Safety) Bill 2004
PART 4--WATER RIGHTS FOR PETROLEUM TENURES
185 Underground water rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
186 Right to allow use of associated water for domestic or stock purposes . . . . 159
187 Water monitoring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
188 Authorisation for Water Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
189 Water Act not otherwise affected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
PART 5--WATER MONITORING AUTHORITIES
Division 1--Obtaining water monitoring authority
190 Who may apply for water monitoring authority . . . . . . . . . . . . . . . . . . . . . . 161
191 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
192 Deciding application for water monitoring authority . . . . . . . . . . . . . . . . . . 161
Division 2--Key authorised activities
193 Operation of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
194 Water monitoring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
195 Limited right to take or interfere with underground water . . . . . . . . . . . . . . 163
196 Authorisation for Water Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
197 Water Act not otherwise affected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
198 Restriction on carrying out authorised activities . . . . . . . . . . . . . . . . . . . . . . 164
199 No right to petroleum discovered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Division 3--Miscellaneous provisions
200 Term of authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
201 Provision for who is the authority holder if only 1 related petroleum tenure 164
202 Additional condition of relevant petroleum tenure . . . . . . . . . . . . . . . . . . . . 164
203 Amending water monitoring authority by application . . . . . . . . . . . . . . . . . 165
PART 6--THIRD PARTY STORAGE ACCESS TO NATURAL
UNDERGROUND RESERVOIRS
Division 1--Purpose of part
204 Purpose of pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Division 2--Storage agreements and related provisions
Subdivision 1--Storage agreements
205 Meaning of "storage agreement" and "existing user" . . . . . . . . . . . . . . . . . . 166
206 Development plan overrides storage agreement . . . . . . . . . . . . . . . . . . . . . . 167
207 Existing user's obligation to give information . . . . . . . . . . . . . . . . . . . . . . . 167
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Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Negotiation obligations of petroleum lease holders
and existing users
208 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
209 Obligation to negotiate with proposed users . . . . . . . . . . . . . . . . . . . . . . . . . 168
210 Obligation about priority for proposed users . . . . . . . . . . . . . . . . . . . . . . . . 168
211 Obligation to give information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Division 3--Provisions for stored petroleum or prescribed storage gas
after petroleum lease ends
Subdivision 1--Preliminary
212 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Subdivision 2--Claiming stored petroleum or prescribed storage gas
213 Notice to claim for stored petroleum or prescribed storage gas . . . . . . . . . . 170
214 Property in stored petroleum or prescribed storage gas if no notice of
claim ............................................... 171
Subdivision 3--Deciding claims
215 Deciding claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
216 State property in stored petroleum or prescribed storage gas to
extent claims are not upheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Subdivision 4--Dealing with upheld claims
217 Application of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
218 Call for tenders required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
219 Requirement to notify change in ownership . . . . . . . . . . . . . . . . . . . . . . . . . 173
220 Preferred tender may make storage agreements . . . . . . . . . . . . . . . . . . . . . . 174
221 Negotiation notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
222 Obligation of holder to negotiate with current owners . . . . . . . . . . . . . . . . . 174
223 Taking of effect of non-owner lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
224 Cancellation of non-owner lease in particular circumstances . . . . . . . . . . . . 175
225 Annual rent for non-owner lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
226 State property in stored petroleum or prescribed storage gas in
particular circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
227 Storage rent payable by current owner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Division 4--Regulatory provisions
228 Prohibition on actions preventing access . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
229 Orders to enforce prohibition on preventing access . . . . . . . . . . . . . . . . . . . 178
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Petroleum and Gas (Production and Safety) Bill 2004
PART 7--COMMERCIAL VIABILITY ASSESSMENT
230 Minister's power to require commercial viability report. . . . . . . . . . . . . . . . 178
231 Required content of commercial viability report . . . . . . . . . . . . . . . . . . . . . 179
232 Minister's power to obtain independent viability assessment . . . . . . . . . . . . 180
233 Costs of independent viability assessment . . . . . . . . . . . . . . . . . . . . . . . . . . 181
PART 8--PETROLEUM ACTIVITIES COORDINATION
234 Arrangement to coordinate petroleum activities . . . . . . . . . . . . . . . . . . . . . . 181
235 Applying for Ministerial approval of proposed coordination arrangement. . 183
236 Ministerial approval of proposed coordination arrangement . . . . . . . . . . . . 184
237 Approval does not confer right to renew . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
238 Subleasing of 1923 Act lease provided for under coordination arrangement 185
239 Coordination arrangement overrides relevant leases. . . . . . . . . . . . . . . . . . . 185
240 Grant of pipeline licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
241 Amendment or cancellation by parties to arrangement. . . . . . . . . . . . . . . . . 186
242 Minister's power to cancel arrangement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
243 Effect of cancellation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
PART 9--EXISTING WATER ACT BORES
Division 1--Preliminary
244 Simplified outline of pt 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
245 What is an "existing Water Act bore" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
246 When an existing Water Act bore is "unduly affected" . . . . . . . . . . . . . . . . . 188
247 When an existing Water Act bore has an "impaired capacity" . . . . . . . . . . . 189
248 What are "restoration measures". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
249 References to petroleum tenure holder in pt 9 . . . . . . . . . . . . . . . . . . . . . . . 189
Division 2--Obligation to make good for existing Water Act bores
250 The make good obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
251 Provisions for application of make good obligation . . . . . . . . . . . . . . . . . . . 190
Division 3--Underground water impact reports
Subdivision 1--Fixing of trigger threshold for aquifers
252 Operation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
253 Request for trigger threshold and action on request . . . . . . . . . . . . . . . . . . . 191
254 Provisions for fixing trigger threshold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
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Petroleum and Gas (Production and Safety) Bill 2004
255 Fixed trigger threshold applies for all underground water rights . . . . . . . . . 192
Subdivision 2--Lodging report
256 Lodging report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
257 Requirements for report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
258 Exemption from underground water flow model . . . . . . . . . . . . . . . . . . . . . 194
Subdivision 3--Consideration of underground water impact report
259 Power to require amendment of report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
260 Decision on report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Division 4--Pre-closure report
261 Obligation to lodge pre-closure report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
262 Requirements for report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
263 Power to require amendment of report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
264 Effect of lodgment of report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Division 5 --Monitoring and review reports
265 Operation of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
266 Obligation to lodge monitoring reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
267 Obligation to lodge review reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
268 Effect of lodgment of review report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
269 Chief executive's power to change frequency of reports. . . . . . . . . . . . . . . . 199
270 Chief executive's power to change reporting days . . . . . . . . . . . . . . . . . . . . 200
271 Power to require amendment of review report . . . . . . . . . . . . . . . . . . . . . . . 200
Division 6--Complying with make good obligation
Subdivision 1--Obligation to negotiate
272 Petroleum tenure holder's obligation to negotiate. . . . . . . . . . . . . . . . . . . . . 201
Subdivision 2--Tribunal decision on how the obligation must be
complied with
273 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
274 Applying to tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
275 Provisions for making decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
276 Provisions for deciding compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Subdivision 3--Miscellaneous provisions
277 Make good agreement or tribunal's decision binds successors and assigns . 203
278 Reviews by tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
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Petroleum and Gas (Production and Safety) Bill 2004
279 Right of entry after petroleum tenure ends to comply with make
good obligation ......................................... 204
280 Advice from Water Act regulator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
PART 10--GENERAL PROVISIONS FOR PETROLEUM WELLS,
WATER SUPPLY BORES AND WATER OBSERVATION BORES
Division 1--Restrictions on drilling
281 Standard for drilling petroleum well . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
282 Restriction on who may drill water observation bore or water
observation bore .......................................... 205
Division 2--Converting petroleum well to water supply bore
283 Restrictions on making conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
284 Notice of conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Division 3--Transfers of petroleum wells, water observation bores and
water supply bores
Subdivision 1--General provisions
285 Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
286 Transfer only permitted under div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
287 Effect of transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Subdivision 2--Permitted transfers
288 Transfer of water supply bore or water observation bore to landowner . . . . 207
289 Transfer of petroleum well to holder of geothermal exploration permit
or mining tenement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
290 Transfer of water observation bore to petroleum tenure or water
monitoring authority holder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Subdivision 3--Notice of transfer
291 Notice of transfer to Water Act regulator or Mineral Resources Act
chief executive ........................................ 209
Division 4--Decommissioning of petroleum wells, water observation
bores and water supply bores
292 Obligation to decommission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
293 Right of entry to facilitate decommissioning . . . . . . . . . . . . . . . . . . . . . . . . 211
294 Responsibility for well or bore after decommissioning . . . . . . . . . . . . . . . . 211
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Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 3--PROVISIONS FOR COAL SEAM GAS
PART 1--PRELIMINARY
Division 1--Introduction
295 Main purposes of ch 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
296 How main purposes are achieved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
297 Relationship with chs 2, 5 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
298 Description of petroleum leases for ch 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Division 2--Definitions for chapter 3
299 What is "coal seam gas" and "incidental coal seam gas" . . . . . . . . . . . . . . . 216
300 What is "oil shale". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
301 What is a "coal exploration tenement" and a "coal mining lease" . . . . . . . . 216
302 What is an "oil shale exploration tenement" and an "oil shale mining lease" 217
303 What is a "coal or oil shale mining tenement" . . . . . . . . . . . . . . . . . . . . . . . 217
PART 2--OBTAINING PETROLEUM LEASE OVER LAND IN
AREA OF COAL OR OIL SHALE EXPLORATION TENEMENT
Division 1--Obtaining petroleum lease other than by or jointly with, or
with the consent of, coal or oil shale exploration tenement holder
Subdivision 1--Preliminary
304 Application of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Subdivision 2--Provisions for making petroleum lease application
305 Additional requirements for making application. . . . . . . . . . . . . . . . . . . . . . 218
306 Content requirements for CSG statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Subdivision 3--Provisions for splitting application in particular
circumstances
307 Requirement to split application if it relates to coal or oil
shale mining tenements not held by the same person . . . . . . . . . . . . . . . . . . 220
308 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 221
309 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 221
Subdivision 4--Obligations of applicant and coal or oil shale
exploration tenement holder
310 Applicant's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
311 Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
312 Consequence of applicant not complying with obligations or
requirement .......................................... 224
313 Obligations of coal or oil shale exploration tenement holder . . . . . . . . . . . . 224
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Petroleum and Gas (Production and Safety) Bill 2004
314 Submissions by coal or oil shale exploration tenement holder . . . . . . . . . . . 225
Subdivision 5--Priority for earlier coal mining lease or oil shale mining
lease application or proposed application
315 Earlier coal mining lease or oil shale mining lease application . . . . . . . . . . 226
316 Proposed coal mining lease or oil shale mining lease for which EIS
approval given ......................................... 227
317 Proposed mining lease declared a significant project . . . . . . . . . . . . . . . . . . 228
Subdivision 6--Ministerial decision about whether to give any
preference to development of coal or oil shale resources
318 When preference decision is required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
319 Decision about whether to give any preference to development
of coal or oil shale ........................................ 230
320 Reference to tribunal before making preference decision. . . . . . . . . . . . . . . 230
321 Restrictions on giving preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
Subdivision 7--Process if preference decision is to give any preference
to development of coal or oil shale resources
322 Application of sdiv 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
323 Notice to applicant and coal or oil shale exploration tenement holder 233
324 Mining lease application for all of the land. . . . . . . . . . . . . . . . . . . . . . . . . . 233
325 Mining lease application for part of the land . . . . . . . . . . . . . . . . . . . . . . . . 233
326 No mining lease application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Subdivision 8--Deciding petroleum lease
327 Application of sdiv 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
328 Additional criteria for deciding provisions of petroleum lease . . . . . . . . . . . 235
329 Power to impose relinquishment condition . . . . . . . . . . . . . . . . . . . . . . . . . . 235
330 Publication of outcome of application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Division 2--Petroleum lease application by or jointly with, or with the
consent of, coal or oil shale exploration tenement holder
331 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
332 Right to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
333 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
334 No calls for tenders after application made. . . . . . . . . . . . . . . . . . . . . . . . . . 238
335 Requirement to split application if it relates to coal or oil
shale mining tenements not held by the same person . . . . . . . . . . . . . . . . . . 238
336 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 239
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Petroleum and Gas (Production and Safety) Bill 2004
337 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 239
338 Priority for earlier mining lease application or proposed application . . . . . . 239
339 Priority for deciding earlier petroleum lease application . . . . . . . . . . . . . . . 239
340 Right to grant if particular requirements met . . . . . . . . . . . . . . . . . . . . . . . . 240
341 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Division 3--Petroleum lease applications in response to Mineral
Resources Act preference decision
342 Additional ground for refusing application . . . . . . . . . . . . . . . . . . . . . . . . . . 242
PART 3--OBTAINING PETROLEUM LEASE OVER LAND IN
AREA OF COAL MINING LEASE OR OIL SHALE MINING
LEASE
Division 1--Exclusion of power to call for tenders
343 Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Division 2--Petroleum lease application other than by or jointly with
coal mining lease holder or oil shale mining lease holder
344 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
345 Additional requirements for making application. . . . . . . . . . . . . . . . . . . . . . 244
346 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 244
347 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 244
348 Notice to coal mining lease holder or oil shale mining lease holder. . . . . . . 244
349 Coal mining lease holder's or oil shale mining lease holder's
obligation to negotiate ..................................... 245
350 Additional requirements for grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
Division 3--Petroleum lease application by or jointly with coal mining
lease holder or oil shale mining lease holder
351 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
352 Right to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
353 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
354 Power to split application if it includes other land . . . . . . . . . . . . . . . . . . . . 247
355 Power to split application at applicant's request . . . . . . . . . . . . . . . . . . . . . . 248
356 Right to grant if particular requirements met . . . . . . . . . . . . . . . . . . . . . . . . 248
357 Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
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Petroleum and Gas (Production and Safety) Bill 2004
PART 4--ADDITIONAL PROVISIONS FOR AUTHORITIES TO
PROSPECT AND DATA ACQUISITON AUTHORITIES
Division 1--Grant of authority to prospect in area of coal or oil shale
exploration tenement
358 Provisions for authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
Division 2--Restriction on authorised activities on coal mining lease or
oil shale mining lease land
359 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
360 Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
Division 3--Exception to automatic area reduction of authority to
prospect on grant of petroleum lease
361 Exception. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
Division 4--Conditions
362 Notice to coal or oil shale exploration tenement holders and applicants 251
363 Compliance with obligations under Mineral Resources Act . . . . . . . . . . . . . 251
PART 5--ADDITIONAL PROVISIONS FOR PETROLEUM
LEASES
Division 1--Restriction on authorised activities for particular petroleum
leases
364 Restriction on authorised activities on overlapping ATP land. . . . . . . . . . . . 252
Division 2--Conditions
365 Continuing requirement for coordination arrangement for
particular petroleum leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
366 Compliance with obligation to negotiate with coal or oil shale
mining lease applicant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
367 Requirement for giving of copy of relinquishment report. . . . . . . . . . . . . . . 254
368 Cessation of relinquishment condition for area not overlapping with
coal or oil shale exploration tenement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
Division 3--Amendment of relinquishment condition by application
Subdivision 1--Preliminary
369 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
Subdivision 2--Making application to amend relinquishment condition
370 Conditions for applying to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
371 Obligation of coal or oil shale exploration tenement holder to negotiate . . . 255
372 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
373 Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
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Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Deciding amendment application
374 Submissions by coal or oil shale exploration tenement holder . . . . . . . . . . . 257
375 Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
376 Deciding amendment application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
Division 4--Restriction on amendment of other conditions
377 Interests of relevant coal or oil shale mining tenement holder to
be considered ......................................... 259
Division 5--Renewals
378 Applied provisions for making and deciding renewal application . . . . . . . . 259
Division 6--Restrictions on particular transfers
379 Requirement for coordination arrangement to transfer petroleum
lease in tenure area of mining lease. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
PART 6--ADDITIONAL PROVISIONS FOR DEVELOPMENT
PLANS
Division 1--Additional requirements for proposed initial development
plans
380 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
381 Statement about interests of coal or oil shale exploration tenement holder 261
382 Requirement to optimise petroleum production . . . . . . . . . . . . . . . . . . . . . . 261
383 Consistency with coal mining lease or oil shale mining lease
development plan and relevant coordination arrangement . . . . . . . . . . . . . . 262
Division 2--Additional development plan criteria for proposed later
development plans
384 Additional criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
PART 7--ADDITIONAL PROVISIONS FOR SAFETY
MANAGEMENT PLAN
385 Grant of petroleum lease does not affect obligation to make plan . . . . . . . . 262
386 Consultation with particular coal mining tenement or oil shale
mining tenement holders required before making plan. . . . . . . . . . . . . . . . . 263
387 Resolving disputes about provision proposed by coal or oil shale
exploration tenement holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
388 Additional content requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
389 Exemption from additional content requirements . . . . . . . . . . . . . . . . . . . . . 265
PART 8--CONFIDENTIALITY OF INFORMATION
390 Application of pt 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
391 Confidentiality obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
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Petroleum and Gas (Production and Safety) Bill 2004
392 Civil remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
CHAPTER 4--LICENCES AND RELATED MATTERS
PART 1--SURVEY LICENCES
Division 1--Key authorised activities
393 Purpose of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
394 Surveying activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
Division 2--Obtaining survey licence
395 Applying for licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
396 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
397 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
PART 2--PIPELINE LICENCES
Division 1--Key authorised activities
Subdivision 1--Preliminary
398 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
399 What is "pipeline land" for a pipeline licence. . . . . . . . . . . . . . . . . . . . . . . . 271
Subdivision 2--General restriction on authorised activities
400 Restriction if there is an existing mining lease . . . . . . . . . . . . . . . . . . . . . . . 272
Subdivision 3--Pipeline construction and operation
401 Construction and operation of pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
402 Licence may extend transportation right to other prescribed substances . . . 273
403 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Division 2--Availability of pipeline licences
404 Licence types--area or point to point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
405 Pipeline licence can not be granted for distribution pipeline . . . . . . . . . . . . 274
406 Pipeline licence may be granted over any land . . . . . . . . . . . . . . . . . . . . . . . 274
Division 3--Obtaining pipeline licence
Subdivision 1--Applying for pipeline licence
407 Who may apply and multiple licence applications . . . . . . . . . . . . . . . . . . . . 275
408 Notice of proposed application to relevant local government . . . . . . . . . . . . 275
409 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
Subdivision 2--Deciding pipeline licence application
410 Deciding whether to grant licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
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Petroleum and Gas (Production and Safety) Bill 2004
411 Public notice requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
412 Provisions of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
413 Restriction on imposing takeover condition . . . . . . . . . . . . . . . . . . . . . . . . . 279
414 Provision for reduction of area of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
415 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
416 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
Division 4--Key mandatory conditions for pipeline licences
417 Operation of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
418 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 281
419 Obligation to construct pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
420 Notice of completion of pipeline. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
421 Notice to public road authority of pipeline constructed on public road . . . . 282
422 Obligations in operating pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
423 Annual licence fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
424 Civil penalty for nonpayment of annual licence fee . . . . . . . . . . . . . . . . . . . 283
Division 5--Amendment of point-to-point pipeline licences after
pipeline completed
425 Power to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
Division 6--Provisions for public land authorities
Subdivision 1--Public roads
426 Public road authority's obligations in aligning pipeline on road. . . . . . . . . . 284
427 Requirement to consult if construction affects existing pipeline . . . . . . . . . 284
428 Costs of pipeline works caused by public road construction . . . . . . . . . . . . 285
429 Public road authority's obligation to give holder information . . . . . . . . . . . 285
430 Consequence of not giving information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
Subdivision 2--Works directions
431 Power to give works directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
432 Compliance with works direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Division 7--Ministerial review of pipeline licence conditions
433 Application of div 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
434 Power to review licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
435 Notice of proposed amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
436 Decision on proposed amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
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Division 8--Miscellaneous provisions
437 Limitation of transmission pipeline licence holder's liability . . . . . . . . . . . . 289
PART 3--PETROLEUM FACILITY LICENCES
Division 1--Key authorised activities
Subdivision 1--Preliminary
438 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
439 What is "petroleum facility land" for a petroleum facility licence . . . . . . . . 290
Subdivision 2--General restriction on authorised activities
440 Restriction if there is an existing mining lease . . . . . . . . . . . . . . . . . . . . . . . 291
Subdivision 3--Petroleum facility construction and operation
441 Construction and operation of petroleum facility . . . . . . . . . . . . . . . . . . . . . 292
442 Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
Division 2--Obtaining petroleum facility licence
Subdivision 1--Applying for petroleum facility licence
443 Who may apply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
444 Notice of proposed application to relevant local government . . . . . . . . . . . . 293
445 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
Subdivision 2--Deciding petroleum facility licence application
446 Deciding whether to grant licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
447 Provisions of licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
448 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
449 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
Division 3--Key mandatory conditions for petroleum facility licences
450 Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
451 Obligation to consult with particular owners and occupiers . . . . . . . . . . . . . 297
452 Obligation to construct facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
453 Obligation to operate facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
454 Annual licence fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
455 Civil penalty for nonpayment of annual licence fee . . . . . . . . . . . . . . . . . . . 298
PART 4--TAKING LAND FOR PIPELINES AND PETROLEUM
FACILITIES
456 State's power to take land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
457 Restrictions on power to take land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
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Petroleum and Gas (Production and Safety) Bill 2004
458 Process for taking land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
459 Recovery of costs and compensation from holder or proposed holder . . . . . 300
460 Power to enter land proposed to be taken . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
461 Requirements for entry to land proposed to be taken . . . . . . . . . . . . . . . . . . 302
462 Disposal of land taken by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302
PART 5--PERMISSION TO ENTER LAND TO EXERCISE
RIGHTS UNDER A PIPELINE OR PETROLEUM FACILITY
LICENCE
Division 1--Applying for and obtaining permission
463 Applying for permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
464 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
465 Notice to owners about application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
466 Change in ownership during consultation period . . . . . . . . . . . . . . . . . . . . . 304
467 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
468 Criteria for decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
469 Statement of proposed resumption may be included. . . . . . . . . . . . . . . . . . . 306
470 Steps after and taking effect of part 5 permission . . . . . . . . . . . . . . . . . . . . . 306
Division 2--Effect and term of part 5 permission
471 Effect of part 5 permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
472 Term of part 5 permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
473 Power to cancel part 5 permission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
PART 6--AMENDING LICENCE BY APPLICATION
474 Amendment applications that may be made . . . . . . . . . . . . . . . . . . . . . . . . . 308
475 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
476 Notice requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
477 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
478 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
PART 7--RENEWALS
479 Conditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
480 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311
481 Continuing effect of licence for renewal application . . . . . . . . . . . . . . . . . . 311
482 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312
483 Provisions and term of renewed licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312
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Petroleum and Gas (Production and Safety) Bill 2004
484 Criteria for decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
485 Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
486 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
CHAPTER 5--COMMON PETROLEUM AUTHORITY
PROVISIONS
PART 1--SECURITY
487 Operation and purpose of pt 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
488 Power to require security for petroleum authority . . . . . . . . . . . . . . . . . . . . 316
489 Minister's power to require additional security. . . . . . . . . . . . . . . . . . . . . . . 316
490 Interest on security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
491 Power to use security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
492 Replenishment of security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
493 Security not affected by change in authority holder . . . . . . . . . . . . . . . . . . . 317
494 Retention of security after petroleum authority ends . . . . . . . . . . . . . . . . . . 318
PART 2--PRIVATE LAND
Division 1--Preliminary
495 Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
496 Provision for applying pt 2 to water monitoring authorities . . . . . . . . . . . . . 319
Division 2--Requirement for entry notice for entry to private land in
area of petroleum authority
497 Requirement for entry notice to carry out authorised activities . . . . . . . . . . 319
498 Waiver of entry notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
499 Required contents of entry notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
500 Giving entry notice by publication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
Division 3--Access to private land outside area of petroleum authority
Subdivision 1--Preliminary
501 Application of div 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
Subdivision 2--Access rights and access agreements
502 Access rights of petroleum authority holder . . . . . . . . . . . . . . . . . . . . . . . . . 321
503 Restriction on exercise of access rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322
504 Owner or occupier must not unreasonably refuse to make access agreement 323
505 Principles for deciding whether access is reasonable . . . . . . . . . . . . . . . . . . 323
506 Provisions for access agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324
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Petroleum and Gas (Production and Safety) Bill 2004
507 Access agreement binds successors and assigns . . . . . . . . . . . . . . . . . . . . . . 324
Subdivision 3--Tribunal resolution
508 Power of tribunal to decide access agreement. . . . . . . . . . . . . . . . . . . . . . . . 325
509 Power of tribunal to vary access agreement . . . . . . . . . . . . . . . . . . . . . . . . . 325
510 Criteria for deciding access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325
Division 4--Provisions for dealings or change in ownership
or occupancy
511 Entry notice or waiver of entry notice or access agreement not
affected by dealing ..................................... 326
512 Change in ownership or occupancy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
Division 5--Periodic notice after entry of land
513 Notice to owners and occupiers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327
PART 3--PUBLIC LAND
Division 1--Public roads
Subdivision 1--Preliminary
514 Significant projects excluded from div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . 328
515 What is a "notifiable road use" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328
Subdivision 2--Notifiable road uses
516 Notice of notifiable road use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
517 Directions about notifiable road use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330
518 Obligation to comply with road use directions . . . . . . . . . . . . . . . . . . . . . . . 330
Subdivision 3--Compensation for notifiable road uses
519 Liability to compensate public road authority. . . . . . . . . . . . . . . . . . . . . . . . 331
520 Compensation agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
521 Deciding compensation through tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
522 Criteria for decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332
523 Tribunal review of compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333
524 Compensation to be addressed before carrying out notifiable road use . . . . 334
525 Compensation not affected by change in administration or holder 334
Division 2--Other public land
526 Public land authority approval required for particular activities . . . . . . . . . . 335
527 Conditions of public land authority approval . . . . . . . . . . . . . . . . . . . . . . . . 336
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Petroleum and Gas (Production and Safety) Bill 2004
PART 4--ACCESS TO LAND IN AREA OF ANOTHER
PETROLEUM AUTHORITY OR A MINING TENEMENT
528 Application of pt 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336
529 Access to land in area of mining lease or petroleum lease . . . . . . . . . . . . . . 336
530 Access to land in area of another type of mining tenement or petroleum
authority ............................................. 337
PART 5--GENERAL COMPENSATION PROVISIONS
531 General liability to compensate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
532 Compensation agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339
533 Deciding compensation through tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
534 Tribunal review of compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
535 Orders tribunal may make . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
536 Compensation to be addressed before entry to private land . . . . . . . . . . . . . 341
537 Compensation not affected by change in ownership or occupancy. . . . . . . . 342
PART 6--OWNERSHIP OF PIPELINES, EQUIPMENT AND
IMPROVEMENTS
Division 1--Pipelines
538 Application of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343
539 General provision about ownership while tenure or licence is in force
for pipeline ........................................... 343
540 Ownership afterwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
Division 2--Equipment and improvements
541 Application of div 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
542 Ownership of equipment and improvements. . . . . . . . . . . . . . . . . . . . . . . . . 345
PART 7--REPORTING
Division 1--Reporting provisions for petroleum tenures
Subdivision 1--General provisions
543 Requirement of petroleum tenure holder to report outcome of testing . . . . . 346
544 Notice by petroleum tenure holder about discovery and commercial
viability .............................................. 347
545 Relinquishment report by tenure holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
546 End of tenure report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348
Subdivision 2--Records and samples
547 Requirement to keep records and samples . . . . . . . . . . . . . . . . . . . . . . . . . . 349
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Petroleum and Gas (Production and Safety) Bill 2004
548 Requirement to lodge records and samples. . . . . . . . . . . . . . . . . . . . . . . . . . 349
Subdivision 3--Releasing required information
549 Meaning of "required information". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
550 Public release of required information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
551 Chief executive may use required information . . . . . . . . . . . . . . . . . . . . . . . 351
Division 2--Reporting provisions for all petroleum authorities
552 Obligation to lodge annual reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351
553 Power to require information or reports about authorised
activities to be kept or given . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352
PART 8--GENERAL PROVISIONS FOR CONDITIONS AND
AUTHORISED ACTIVITIES
Division 1--Other mandatory conditions for all petroleum authorities
554 Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
555 Obligation to prevent spread of declared pests . . . . . . . . . . . . . . . . . . . . . . . 354
556 Requirement to consider using formed roads . . . . . . . . . . . . . . . . . . . . . . . . 355
557 Obligation to comply with Act and prescribed standards . . . . . . . . . . . . . . . 355
558 Obligation to survey if Minister requires . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
Division 2--Provisions for when authority ends or area reduced
559 Obligation to decommission pipelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
560 Obligation to remove equipment and improvements . . . . . . . . . . . . . . . . . . 357
561 Authorisation to enter to facilitate compliance with s 555 or div 2 . . . . . . . 358
Division 3--Provisions for authorised activities
562 General restriction on carrying out authorised activities. . . . . . . . . . . . . . . . 358
563 Who may carry out authorised activity for petroleum authority holder . . . . 359
PART 9--PETROLEUM REGISTER
564 Petroleum register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
565 Keeping of register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
566 Access to register. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
567 Chief executive may correct register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
PART 10--DEALINGS
Division 1--Permitted dealings
568 What is a "permitted dealing" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
569 Prohibited dealings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362
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Petroleum and Gas (Production and Safety) Bill 2004
570 Conditions for permitted dealings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363
Division 2--Obtaining approval for permitted dealing
571 Minister may give indication for proposed permitted dealing . . . . . . . . . . . 363
572 Applying for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364
573 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364
574 Criteria for decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365
PART 11--SURRENDERS
575 Requirements for surrenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366
576 Requirements for making surrender application . . . . . . . . . . . . . . . . . . . . . . 367
577 Notice of application required for particular pipeline licences . . . . . . . . . . . 368
578 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368
579 Notice and taking effect of decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369
PART 12--ENFORCEMENT OF END OF AUTHORITY AND
AREA REDUCTION OBLIGATIONS
580 Power of authorised person to ensure compliance . . . . . . . . . . . . . . . . . . . . 369
581 Requirements for entry to ensure compliance. . . . . . . . . . . . . . . . . . . . . . . . 370
582 Duty to avoid damage in exercising remedial powers. . . . . . . . . . . . . . . . . . 371
583 Notice of damage because of exercise of remedial powers. . . . . . . . . . . . . . 371
584 Compensation for exercise of remedial powers . . . . . . . . . . . . . . . . . . . . . . 371
585 Ownership of thing removed in exercise of remedial powers . . . . . . . . . . . . 372
586 Recovery of costs of and compensation for exercise of remedial power . . . 372
PART 13--MISCELLANEOUS PROVISIONS
587 Minister's power to ensure compliance by petroleum authority holder . . . . 373
588 Interest on amounts owing to the State other than for petroleum royalty . . . 374
589 Recovery of unpaid amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 374
CHAPTER 6--PETROLEUM ROYALTY
PART 1--IMPOSITION OF PETROLEUM ROYALTY
590 Imposition of petroleum royalty on petroleum producers. . . . . . . . . . . . . . . 375
591 Exemptions from petroleum royalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
592 Minister may decide measurement if not made or royalty information
not given ............................................ 377
PART 2--ROYALTY RETURNS
593 Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377
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Petroleum and Gas (Production and Safety) Bill 2004
594 Obligation to lodge royalty return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
595 Fee for late lodgment of royalty return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
596 Approval to use estimates for royalty return . . . . . . . . . . . . . . . . . . . . . . . . . 378
597 Petroleum producer's obligations if use of estimates approved . . . . . . . . . . 379
598 Obligation to disclose inaccurate information. . . . . . . . . . . . . . . . . . . . . . . . 379
599 Annual royalty returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380
PART 3--PAYMENT OF PETROLEUM ROYALTY
600 Overpayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381
601 Underpayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381
602 Interest on unpaid petroleum royalty or additional petroleum royalty . . . . . 382
603 Recovery of unpaid petroleum royalty and interest . . . . . . . . . . . . . . . . . . . 382
604 Certificate of unpaid petroleum royalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383
PART 4--MONITORING PAYMENT OF PETROLEUM ROYALTY
Division 1--Audits by approved auditors
605 Appointment and qualifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384
606 Appointment conditions and limit on powers . . . . . . . . . . . . . . . . . . . . . . . . 384
607 Issue of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385
608 Production or display of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385
609 When approved auditor ceases to hold office . . . . . . . . . . . . . . . . . . . . . . . . 385
610 Revocation of approved auditor's appointment. . . . . . . . . . . . . . . . . . . . . . . 386
611 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
612 Return of identity card. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
613 Approved auditor's power to audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
614 Application of ch 10, pt 1, divs 2-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
Division 2--Audits by auditor-general
615 Auditor-general's power to audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
616 Powers in carrying out audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
617 Report on audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
CHAPTER 7--FUEL GAS QUALITY AND CHARACTERISTICS
FOR CONSUMERS
PART 1--PRELIMINARY
618 Application of ch 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
619 Who is a "consumer" of fuel gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
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Petroleum and Gas (Production and Safety) Bill 2004
PART 2--QUALITY
Division 1--Quality restrictions
620 Prescribed quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
621 Restrictions on supplying gas not of prescribed quality . . . . . . . . . . . . . . . . 390
Division 2--Gas quality approvals
622 Chief inspector's power to approve quality. . . . . . . . . . . . . . . . . . . . . . . . . . 390
623 Criteria for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391
624 Steps after making decision about approval . . . . . . . . . . . . . . . . . . . . . . . . . 391
625 Power to cancel approval. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391
PART 3--CHARACTERISTICS
626 Fuel gas supplied through pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392
627 Prescribed odour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
628 Odour requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
CHAPTER 8--PETROLEUM AND FUEL GAS MEASUREMENT
PART 1--INTRODUCTION
Division 1--Application of chapter 8
629 Application of ch 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394
630 Relationship with Trade Measurement Act 1990 . . . . . . . . . . . . . . . . . . . . . 394
Division 2--Interpretation
631 What is a "meter" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
632 Who is the "controller" of a meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 395
633 What is the "measurement scheme" for a meter . . . . . . . . . . . . . . . . . . . . . . 396
634 "Measurement" includes estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396
635 What is the "tolerance for error" for a meter. . . . . . . . . . . . . . . . . . . . . . . . . 396
PART 2--MEASUREMENT SCHEMES
Division 1--Making and revision of measurement scheme
636 Obligations of controller of meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396
637 Content requirements for measurement schemes . . . . . . . . . . . . . . . . . . . . . 397
638 Power to fix competency required under measurement scheme . . . . . . . . . . 399
639 When measurement scheme must be revised . . . . . . . . . . . . . . . . . . . . . . . . 399
Division 2--Compliance with measurement scheme
640 Meter installation or use must comply with scheme . . . . . . . . . . . . . . . . . . . 400
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Petroleum and Gas (Production and Safety) Bill 2004
641 Measurement must comply with scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
642 Controller responsible for compliance with measurement scheme. . . . . . . . 400
Division 3--Regulatory provisions
643 Chief executive's powers if no measurement scheme . . . . . . . . . . . . . . . . . . 401
644 Notice by chief executive of unsatisfactory measurement scheme . . . . . . . . 401
645 Considering submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402
646 Revision notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402
Division 4--Significant meter anomalies
647 Application of div 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
648 Restrictions on use of meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
649 Obligation to report if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
Division 5--Other reporting requirements
650 Annual measurement report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
651 Content requirements for annual measurement reports. . . . . . . . . . . . . . . . . 404
652 Power to require information about persons acting under
measurement scheme ...................................... 405
PART 3--COMPETENCY ASSESSMENTS
653 Chief executive's power to require competency assessment . . . . . . . . . . . . . 405
654 Costs of competency assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406
655 Requirements following competency assessment . . . . . . . . . . . . . . . . . . . . . 406
PART 4--GENERAL PROVISIONS ABOUT METERS
656 Controller's obligation to test if inaccuracy suspected . . . . . . . . . . . . . . . . . 407
657 Unlawfully interfering with meters or devices prohibited . . . . . . . . . . . . . . 407
658 Authorisation required to install or use pre-payment meters . . . . . . . . . . . . 408
PART 5--METER ACCURACY DISPUTES
Division 1--Preliminary
659 Application of pt 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408
660 Who is an "affected party" for a meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408
661 Who is the "service provider" for an affected party . . . . . . . . . . . . . . . . . . . 409
Division 2--Test by service provider
662 Service provider test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409
663 Content requirements for meter test certificate . . . . . . . . . . . . . . . . . . . . . . . 410
664 Refund if test shows inaccuracy in service provider's favour . . . . . . . . . . . . 410
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Petroleum and Gas (Production and Safety) Bill 2004
665 Restriction on tester adjusting meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410
Division 3--Validation of service provider test
666 Validation test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411
667 Refund if test shows inaccuracy in service provider's favour . . . . . . . . . . . . 412
668 Service provider's obligations if test shows inaccuracy . . . . . . . . . . . . . . . . 412
CHAPTER 9--SAFETY
PART 1--SAFETY REQUIREMENTS
669 Making safety requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
PART 2--SAFETY MANAGEMENT PLANS
Division 1--Preliminary
670 What is an "operating plant" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
671 Limitation for facility or pipeline included in coal mining operation . . . . . . 415
672 What is a "stage" of an operating plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
673 Who is the "operator" of an operating plant . . . . . . . . . . . . . . . . . . . . . . . . . 416
Division 2--Operator's obligations
674 Requirement to have safety management plan . . . . . . . . . . . . . . . . . . . . . . . 416
675 Content requirements for safety management plans . . . . . . . . . . . . . . . . . . . 417
676 Publication of and access to safety management plan . . . . . . . . . . . . . . . . . 419
677 Operator responsible for compliance with safety management plan . . . . . . 420
678 When safety management plan must be revised . . . . . . . . . . . . . . . . . . . . . . 420
Division 3--Validation of safety management plans
679 Notice by chief inspector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
680 Considering submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
681 Revision notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
682 Other inspector's powers not affected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422
Division 4--Special provisions for safety management plans for coal
mining-CSG operating plant
683 Application of div 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
684 Integration with safety and health management system . . . . . . . . . . . . . . . . 423
685 Alternative compliance with s 676 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
686 Restriction on application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424
PART 3--SAFETY POSITIONS AND REPORT
Division 1--Executive safety manager and safety report
687 Who is the "executive safety manager" of an operating plant. . . . . . . . . . . . 424
688 Executive safety manager's general obligations . . . . . . . . . . . . . . . . . . . . . . 424
689 Executive safety manager must give annual safety report. . . . . . . . . . . . . . . 425
690 Content requirements for safety reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426
691 Obligation to give information to coal or oil shale exploration
tenement holder ..................................... 427
Division 2--Site safety manager
692 Site safety manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427
693 Site safety manager's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428
694 Operator is default site safety manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428
PART 4--OTHER SAFETY OBLIGATIONS
Division 1--Obligations relating to plant or equipment for use in
operating plant
695 Exclusion of application of division for coal mining-CSG operating
plant ................................................ 429
696 Designers, importers, manufacturers and suppliers . . . . . . . . . . . . . . . . . . . 429
697 Installers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429
Division 2--Operating plant owners
698 Owner must ensure operator is competent . . . . . . . . . . . . . . . . . . . . . . . . . . 430
Division 3--Control and management of risk at operating plant
699 General obligation to keep risk to acceptable level. . . . . . . . . . . . . . . . . . . . 430
700 What is an "acceptable level" of risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
701 When acceptable level of risk is achieved. . . . . . . . . . . . . . . . . . . . . . . . . . . 431
Division 4--Other obligations of persons at operating plant
702 Requirement to comply with safety management plan . . . . . . . . . . . . . . . . . 432
703 Requirement to comply with instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
704 Wilful or reckless acts or omissions that affect safety . . . . . . . . . . . . . . . . . 432
Division 5--Hazard reporting for operating plant on coal or oil shale
mining lease
705 Operator's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
Division 6--Prescribed incident reporting and security of incident sites
706 Requirement to report prescribed incident . . . . . . . . . . . . . . . . . . . . . . . . . . 433
707 Action to restrict access to incident site . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434
708 Offence to enter or remain in incident site if access restricted . . . . . . . . . . . 434
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Petroleum and Gas (Production and Safety) Bill 2004
PART 5--BOARDS OF INQUIRY
Division 1--Establishment and functions
709 Minister may establish board of inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
710 Membership of board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
711 Board's functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
Division 2--Conduct of inquiry
712 Notice of inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436
713 Inquiry procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436
714 Inquiry to be public unless board directs. . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
715 Protection of members, representatives and witnesses . . . . . . . . . . . . . . . . . 437
716 Board's powers for inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
717 Who may participate at inquiry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
718 Witnesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438
719 Inspection by board of documents or things . . . . . . . . . . . . . . . . . . . . . . . . . 438
Division 3--Miscellaneous provisions
720 Relationship with proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
721 False or misleading statements or document to board . . . . . . . . . . . . . . . . . 439
722 Contempt of board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
723 Change of board membership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439
PART 6--RESTRICTIONS ON GAS WORK
Division 1--Preliminary
724 Types of gas device . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
725 What is "gas work" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440
Division 2--Restrictions
726 Gas devices (type A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
727 Gas devices (type B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
Division 3--Gas work licences and authorisations
728 Chief inspector's power to issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
729 Offence not to comply with conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442
730 Register of gas work licences and authorisations . . . . . . . . . . . . . . . . . . . . . 442
731 Access to register. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442
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PART 7--MISCELLANEOUS PROVISIONS
732 Increase in maximum penalties in circumstances of aggravation . . . . . . . . . 443
733 Certification of gas device or gas fitting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443
734 Safety obligations of gas system installer . . . . . . . . . . . . . . . . . . . . . . . . . . . 444
CHAPTER 10--INVESTIGATIONS AND ENFORCEMENT
PART 1--INVESTIGATIONS
Division 1--Inspectors and authorised officers
735 Appointment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445
736 Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445
737 Appointment conditions and limit on powers . . . . . . . . . . . . . . . . . . . . . . . . 446
738 Issue of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446
739 Production or display of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447
740 When inspector or authorised officer ceases to hold office . . . . . . . . . . . . . . 447
741 Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447
742 Return of identity card. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448
Division 2--Powers of entry of inspectors and authorised officers
743 Power of entry--general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448
744 Inspector's additional entry power for emergency or incident . . . . . . . . . . . 449
745 Inspector's additional entry power for operating plant . . . . . . . . . . . . . . . . . 450
746 Authorised officer's additional entry power for petroleum authority . . . . . . 450
Division 3--Procedure for entry
747 Entry with consent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450
748 Application for warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451
749 Issue of warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451
750 Application by electronic communication and duplicate warrant. . . . . . . . . 452
751 Defect in relation to a warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
752 Warrants--procedure before entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454
Division 4--Powers after entering a place
753 Application of div 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455
754 General powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455
755 Power to require reasonable help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456
756 Failure to comply with help requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . 456
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Division 5--Power to obtain information
757 Power to require name and address . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 456
758 Power to require production of documents . . . . . . . . . . . . . . . . . . . . . . . . . . 457
759 Failure to produce document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458
760 Failure to certify copy of document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458
761 Power to require information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458
762 Failure to comply with information requirement . . . . . . . . . . . . . . . . . . . . . 458
Division 6--Seizure and forfeiture
Subdivision 1--Seizure powers
763 Power to seize things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459
764 Seizure of thing subject to security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459
Subdivision 2--Powers to support seizure
765 Directions to person in control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
766 Failure to comply with seizure direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
767 General powers for seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460
768 Offence to unlawfully interfere with seized thing . . . . . . . . . . . . . . . . . . . . . 461
769 Testing seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461
Subdivision 3--Safeguards for seized property
770 Receipt and information notice for seized things . . . . . . . . . . . . . . . . . . . . . 462
771 Access to seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462
772 Return of seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463
Subdivision 4--Forfeiture
773 Forfeiture of seized things . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463
774 Dealing with forfeited things. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465
Division 7--Notice of damage caused when exercising power
775 Application of div 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465
776 Requirement to give notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465
777 Content of notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466
Division 8--Miscellaneous provisions
778 Compensation for damage because of exercise of powers . . . . . . . . . . . . . . 466
779 Compliance with safety management plan . . . . . . . . . . . . . . . . . . . . . . . . . . 467
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Petroleum and Gas (Production and Safety) Bill 2004
PART 2--DIRECTIONS AND ENFORCEMENT
Division 1--Direction to remedy contravention
780 Power to give compliance direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467
781 Requirements for giving compliance direction . . . . . . . . . . . . . . . . . . . . . . . 468
782 Failure to comply with compliance direction . . . . . . . . . . . . . . . . . . . . . . . . 468
Division 2--Direction to remedy dangerous situation
783 Power to give dangerous situation direction . . . . . . . . . . . . . . . . . . . . . . . . . 469
784 Requirements for giving dangerous situation direction. . . . . . . . . . . . . . . . . 469
785 Failure to comply with dangerous situation direction . . . . . . . . . . . . . . . . . . 470
Division 3--Enforcement of directions
786 Re-inspection or re-attendance to check compliance . . . . . . . . . . . . . . . . . . 470
787 Action to ensure compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470
788 Recovery of enforcement costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470
Division 4--Noncompliance procedure for all authorities under Act
Subdivision 1--Introduction
789 Operation of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471
Subdivision 2--Noncompliance action
790 Types of noncompliance action that may be taken . . . . . . . . . . . . . . . . . . . . 471
791 When noncompliance action may be taken . . . . . . . . . . . . . . . . . . . . . . . . . . 473
792 Provision for divided petroleum tenures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474
Subdivision 3--Procedure for immediate suspension of gas work licence
or authorisation
793 Application of sdiv 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475
794 Immediate suspension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475
Subdivision 4--Procedure for other noncompliance action
795 Application of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476
796 Notice of proposed noncompliance action other than immediate suspension 476
797 Considering submissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477
798 Decision on proposed noncompliance action . . . . . . . . . . . . . . . . . . . . . . . . 477
799 Notice and taking effect of decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 477
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Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 11--GENERAL OFFENCES
PART 1--RESTRICTIONS RELATING TO PETROLEUM
ACTIVITIES
800 Restriction on petroleum tenure activities. . . . . . . . . . . . . . . . . . . . . . . . . . . 479
801 Petroleum producer's measurement obligations . . . . . . . . . . . . . . . . . . . . . . 480
802 Restriction on pipeline construction or operation . . . . . . . . . . . . . . . . . . . . . 481
803 Restriction on petroleum facility construction or operation . . . . . . . . . . . . . 481
804 Duty to avoid interference in carrying out authorised activities . . . . . . . . . . 482
PART 2--INTERFERENCE WITH AUTHORISED ACTIVITIES
805 Obstruction of petroleum authority holder . . . . . . . . . . . . . . . . . . . . . . . . . . 482
806 Interfering with water observation bore . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
807 Restriction on building on pipeline land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 483
808 Restriction on changing surface of pipeline land . . . . . . . . . . . . . . . . . . . . . 483
809 Unlawful taking of petroleum or fuel gas prohibited . . . . . . . . . . . . . . . . . . 484
810 Restriction on building on petroleum facility land . . . . . . . . . . . . . . . . . . . . 484
PART 3--OTHER OFFENCES
811 Obstruction of inspector or authorised officer. . . . . . . . . . . . . . . . . . . . . . . . 484
812 Pretending to be inspector or authorised officer . . . . . . . . . . . . . . . . . . . . . . 485
813 False or misleading information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485
814 Executive officers must ensure corporation complies with Act. . . . . . . . . . . 485
815 Fuel gas suppliers must not use other supplier's containers . . . . . . . . . . . . . 486
816 Attempts to commit offences. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486
CHAPTER 12--REVIEWS AND APPEALS
PART 1--REVIEW OF DECISIONS
817 Who may apply for review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
818 Requirements for making application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
819 Stay of operation of original decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488
820 Review decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 488
821 Review procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489
822 Notice of review decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489
PART 2--APPEALS
823 Who may appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490
824 Period to appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490
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Petroleum and Gas (Production and Safety) Bill 2004
825 Starting appeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
826 Stay of operation of decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
827 Hearing procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 491
828 Appeal body's powers on appeal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 492
829 Restriction on tribunal's powers for decision not to grant petroleum lease . 492
830 Appeals from appeal body's decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493
CHAPTER 13--EVIDENCE AND LEGAL PROCEEDINGS
PART 1--EVIDENTIARY PROVISIONS
831 Application of pt 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
832 Appointments and authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
833 Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
834 Other evidentiary aids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
835 Proof of requirement for land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495
836 Safety management plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495
PART 2--OFFENCE PROCEEDINGS
837 Offences under Act are summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496
838 Statement of complainant's knowledge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496
839 Allegations of false or misleading matters . . . . . . . . . . . . . . . . . . . . . . . . . . 497
840 Conduct of representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497
841 Additional orders that may be made on conviction. . . . . . . . . . . . . . . . . . . . 498
CHAPTER 14--MISCELLANEOUS PROVISIONS
PART 1--APPLICATIONS
842 Substantial compliance with application requirements may be accepted . . . 499
843 Additional information may be required about application . . . . . . . . . . . . . 499
844 Amending applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
845 Withdrawal of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500
846 Minister's power to refund application fee . . . . . . . . . . . . . . . . . . . . . . . . . . 501
PART 2--MISCELLANEOUS PROVISIONS FOR ALL
AUTHORITIES UNDER ACT
847 Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501
848 Power to correct or amend. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501
849 Replacement of authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502
850 Joint and several liability for conditions and for debts to State . . . . . . . . . . 502
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Petroleum and Gas (Production and Safety) Bill 2004
851 Notice of authority or licence holder's agents. . . . . . . . . . . . . . . . . . . . . . . . 502
PART 3--OTHER MISCELLANEOUS PROVISIONS
852 Name and address for service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503
853 Additional information about reports and other matters . . . . . . . . . . . . . . . . 503
854 References to right to enter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503
855 Application of provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504
856 Protection from liability for particular persons . . . . . . . . . . . . . . . . . . . . . . . 504
857 Delegation by Minister, chief executive or chief inspector . . . . . . . . . . . . . . 505
858 Approved forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505
859 Regulation-making power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505
CHAPTER 15--REPEAL AND TRANSITIONAL PROVISIONS
PART 1--REPEAL OF GAS (RESIDUAL PROVISIONS) ACT 1965
860 Repeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506
PART 2--TRANSITIONAL PROVISIONS FOR REPEAL OF GAS
(RESIDUAL PROVISIONS) ACT 1965
861 Definitions for pt 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506
862 Meters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 506
863 Applications to test meter correctness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 507
864 Licences under repealed regulation that become a gas work licence . . . . . . 507
865 Licences under repealed regulation that become an authorisation . . . . . . . . 507
866 Applications for licence similar to gas work licence or authorisation . . . . . 508
867 Accidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 508
868 Gas examiners and other officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 509
869 Gas examiners' requirements under repealed Act, s 8. . . . . . . . . . . . . . . . . . 509
870 Gas examiners' powers under repealed Act, s 8(1)(e) . . . . . . . . . . . . . . . . . . 509
871 Corresponding decisions under repealed Act . . . . . . . . . . . . . . . . . . . . . . . . 510
PART 3--TRANSITIONAL PROVISIONS FOR PETROLEUM AND
GAS (PRODUCTION AND SAFETY) ACT 2004
Division 1--Provisions for particular existing mining tenements
872 Application of s 6 to particular existing mining tenements. . . . . . . . . . . . . . 510
Division 2--Provisions for coal seam gas
873 Deferral of s 115(1) for existing petroleum leases . . . . . . . . . . . . . . . . . . . . 511
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Petroleum and Gas (Production and Safety) Bill 2004
874 Substituted restriction for petroleum leases relating to mineral
hydrocarbon mining leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511
Division 3--Miscellaneous provisions
875 Continuation of petroleum royalty exemption for flaring or
venting under 1923 Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511
876 Deferred application of s 803 for existing petroleum facilities. . . . . . . . . . . 512
877 Existing operating plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512
878 Exclusion of ch 5, pt 3, div 1 for continuance of particular existing
road uses ............................................ 513
CHAPTER 16--AMENDMENT OF ACTS
PART 1--AMENDMENT OF ABORIGINAL LAND ACT 1991
879 Act amended in pt 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514
880 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514
881 Amendment of s 88 (Royalties in relation to mining on Aboriginal land) . . 514
PART 2--AMENDMENT OF COAL MINING SAFETY AND
HEALTH ACT 1999
882 Act amended in pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
883 Insertion of new s 62A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
62A Additional requirement for coal mining operation for incidental
coal seam gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
884 Amendment of sch 2 (Subject matter for regulations) . . . . . . . . . . . . . . . . . 515
885 Amendment of sch 3 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516
PART 3--AMENDMENT OF COASTAL PROTECTION AND
MANAGEMENT ACT 1995
886 Act amended in pt 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
887 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
PART 4--AMENDMENT OF DANGEROUS GOODS SAFETY
MANAGEMENT ACT 2001
888 Act amended in pt 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
889 Amendment of s 3 (Application of Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 518
890 Amendment of s 126 (Notice of major accident) . . . . . . . . . . . . . . . . . . . . . 519
PART 5--AMENDMENT OF DUTIES ACT 2001
891 Act amended in pt 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519
892 Amendment of s 137 (Exemption--mining and petroleum legislation) . . . . 519
893 Amendment of sch 6 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519
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Petroleum and Gas (Production and Safety) Bill 2004
PART 6--AMENDMENT OF ELECTRICAL SAFETY ACT 2002
894 Act amended in pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520
895 Amendment of s 6 (Application of Act to mines and petroleum plant) . . . . 520
PART 7--AMENDMENT OF ENVIRONMENTAL PROTECTION
ACT 1994
896 Act amended in pt 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520
897 Amendment of sch 3 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520
PART 8--AMENDMENT OF EXPLOSIVES ACT 1999
898 Act amended in pt 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
899 Amendment of s 6 (Act's effect on other Acts). . . . . . . . . . . . . . . . . . . . . . . 521
PART 9--AMENDMENT OF FIRE AND RESCUE SERVICE ACT
1990
900 Act amended in pt 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
901 Amendment of s 95 (Application of part) . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
PART 10--AMENDMENT OF FOREIGN OWNERSHIP OF LAND
REGISTER ACT 1988
902 Act amended in pt 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
903 Amendment of s 4 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
PART 11--AMENDMENT OF FORESTRY ACT 1959
904 Act amended in pt 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
905 Amendment of s 5 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
PART 12--AMENDMENT OF GAS PIPELINES ACCESS
(QUEENSLAND) ACT 1998
906 Act amended in pt 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
907 Amendment of s 11 (Interpretation of some expressions in the Gas
Pipelines Access (Queensland) Law and the Gas Pipelines Access
(Queensland) Regulations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
908 Amendment of s 56 (Definitions for pt 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
PART 13--AMENDMENT OF GAS SUPPLY ACT 2003
909 Act amended in pt 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
910 Amendment of s 40 (General conditions) . . . . . . . . . . . . . . . . . . . . . . . . . . . 523
911 Amendment of s 46 (Standard for distribution pipes) . . . . . . . . . . . . . . . . . . 523
912 Amendment of s 57 (Conditions for amendment, cancellation or
suspension) .......................................... 524
913 Amendment of s 85 (General obligations in carrying out work). . . . . . . . . . 524
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Petroleum and Gas (Production and Safety) Bill 2004
914 Amendment of s 88 (Compliance with work direction) . . . . . . . . . . . . . . . . 524
915 Amendment of s 93 (Compliance with consequential work requirement) . . 524
916 Amendment of s 98 (Compliance with remedial action requirement) . . . . . 524
917 Amendment of s 109 (Limits on provision of customer connection services) 525
918 Amendment of s 120 (When distributor may discontinue) . . . . . . . . . . . . . . 525
919 Amendment of s 123 (Recommencement) . . . . . . . . . . . . . . . . . . . . . . . . . . 525
920 Amendment of s 166 (General conditions) . . . . . . . . . . . . . . . . . . . . . . . . . . 525
921 Amendment of s 181 (Conditions for amendment, cancellation or
suspension) .......................................... 526
922 Amendment of s 204 (Limits on provision of customer retail services) . . . . 526
923 Amendment of s 222 (Individual metering option). . . . . . . . . . . . . . . . . . . . 526
924 Amendment of s 236 (Who is a "industry participant") . . . . . . . . . . . . . . . . 526
925 Amendment of s 239 (Contingency supply plan--content requirements) . . 527
926 Insertion of new s 257A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 527
257A Exemption from Petroleum and Gas (Production and Safety)
Act, ss 800, 802 and 803 for person complying with direction . . . . . 527
927 Amendment of s 314 (Replacement of authority) . . . . . . . . . . . . . . . . . . . . . 528
928 Amendment of s 324 (Definitions for ch 7) . . . . . . . . . . . . . . . . . . . . . . . . . 528
929 Amendment of sch 4 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 528
PART 14--AMENDMENT OF GEOTHERMAL EXPLORATION
ACT 2004
930 Act amended in pt 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 529
931 Replacement of s 7 (Relationship with Petroleum Act 1923) . . . . . . . . . . . . 529
7 Relationship with petroleum legislation . . . . . . . . . . . . . . . . . . . . . . 529
932 Amendment of s 50 (Notice of significant discovery). . . . . . . . . . . . . . . . . . 529
933 Amendment of s 126 (Transfer of bore to permit holder) . . . . . . . . . . . . . . . 530
934 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 530
PART 15--AMENDMENT OF INTEGRATED PLANNING ACT
1997
935 Act amended in pt 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531
936 Amendment of s 5.1.7 (Infrastructure charges). . . . . . . . . . . . . . . . . . . . . . . 531
937 Amendment of s 5.1.17 (Regulated infrastructure charges) . . . . . . . . . . . . . 531
938 Amendment of sch 9 (Development that is exempt from
assessment against a planning scheme). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531
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Petroleum and Gas (Production and Safety) Bill 2004
PART 16--AMENDMENT OF LAND ACT 1994
939 Act amended in pt 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531
940 Amendment of s 20 (Dealing with mining interests) . . . . . . . . . . . . . . . . . . 532
PART 17--AMENDMENT OF LAND AND RESOURCES
TRIBUNAL ACT 1999
941 Act amended in pt 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 532
942 Amendment of sch 1 (Requirements for constituting tribunal). . . . . . . . . . . 532
PART 18--AMENDMENT OF LAND PROTECTION (PEST AND
STOCK ROUTE MANAGEMENT) ACT 2002
943 Act amended in pt 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533
944 Amendment of sch 3 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533
PART 19--AMENDMENT OF LAND TITLE ACT 1994
945 Act amended in pt 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533
946 Amendment of s 185 (Exceptions to s 184) . . . . . . . . . . . . . . . . . . . . . . . . . 533
PART 20--AMENDMENT OF LOCAL GOVERNMENT ACT 1993
947 Act amended in pt 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534
948 Amendment of s 4 (Meaning of "owner" of land) . . . . . . . . . . . . . . . . . . . . 534
PART 21--AMENDMENT OF MINERAL RESOURCES ACT 1989
949 Act amended in pt 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534
950 Insertion of new s 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 534
3A Relationship with petroleum legislation . . . . . . . . . . . . . . . . . . . . . . 534
951 Insertion of new s 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536
6 Meaning of "mineral" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536
952 Insertion of new s 6D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 537
6D Notes in text . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538
953 Amendment of s 234 (Governor in Council may grant mining lease) . . . . . 538
954 Amendment of s 235 (Entitlements of holder of mining lease) . . . . . . . . . . 538
955 Amendment of s 245 (Application for grant of mining lease) . . . . . . . . . . . 538
956 Amendment of s 269 (Tribunal's recommendation on hearing) . . . . . . . . . . 539
957 Amendment of s 271 (Minister to consider recommendation made
in respect of application for grant of mining lease). . . . . . . . . . . . . . . . . . . . 539
958 Amendment of s 276 (Conditions of mining lease) . . . . . . . . . . . . . . . . . . . 539
959 Amendment of s 298 (Mining other minerals or use for other purposes) . . . 539
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Petroleum and Gas (Production and Safety) Bill 2004
960 Insertion of new pt 7AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540
PART 7AA--PROVISIONS FOR COAL SEAM GAS
Division 1--Preliminary
Subdivision 1--Introduction
318A Main purposes of pt 7AA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540
318AA How main purposes are achieved . . . . . . . . . . . . . . . . . . . . . . . . . . . 541
318AB Relationship with pts 5-7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542
Subdivision 2--Definitions for part 7AA
318AC What is "coal seam gas" and "incidental coal seam gas" . . . . . . . . . 542
318AD What is "oil shale" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543
318AE What is a "coal exploration tenement", a "coal mining lease"
and a "special coal mining lease" ...................... 543
318AF What is an "oil shale exploration tenement" and an "oil shale
mining lease" ................................... 543
318AG What is a "coal or oil shale mining tenement" . . . . . . . . . . . . . . . . . 544
318AH What is a "development plan" and its "plan period" . . . . . . . . . . . . 544
318AI Petroleum tenures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 544
318AJ What is a "coordination arrangement". . . . . . . . . . . . . . . . . . . . . . . . 545
318AK What is "the public interest". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545
Subdivision 3--Relationship with particular special agreement Acts
318AL Application of pt 7AA to grant of special coal mining lease
under Central Queensland Coal Associates Agreement Act 1968 . . . 545
318AM Part prevails over special agreement Acts . . . . . . . . . . . . . . . . . . . . 546
318AN No compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 546
Division 2--Obtaining coal mining lease or oil shale mining lease over
land in area of authority to prospect (other than by or jointly with, or with
the consent of, authority to prospect holder)
Subdivision 1--Preliminary
318AO Application of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 546
Subdivision 2--Provisions for making coal mining lease or oil shale
mining lease application
318AP Additional requirements for making application . . . . . . . . . . . . . . . 547
Subdivision 3--Provisions for splitting application in particular
circumstances
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Petroleum and Gas (Production and Safety) Bill 2004
318AQ Requirement to split application if it relates to petroleum
lease and authority to prospect not held by same person. . . . . . . . . . 549
318AR Power to split application if it includes other land . . . . . . . . . . . . . . 550
318AS Power to split application at applicant's request . . . . . . . . . . . . . . . . 550
Subdivision 4--Obligations of applicant and authority to prospect holder
318AT Applicant's obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550
318AU Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . 552
318AV Consequence of applicant not complying with obligations or
requirement .................................... 552
318AW Authority to prospect holder's obligations. . . . . . . . . . . . . . . . . . . . 553
318AX Submissions by authority to prospect holder . . . . . . . . . . . . . . . . . . 553
Subdivision 5--Priority for earlier petroleum lease application or
proposed application
318AY Earlier petroleum lease application. . . . . . . . . . . . . . . . . . . . . . . . . . 554
318AZ Proposed petroleum lease for which EIS approval given . . . . . . . . . 555
318B Proposed petroleum lease declared a significant project . . . . . . . . . . 556
Subdivision 6--Ministerial decision about whether to give any preference
to petroleum development
318BA When preference decision is required. . . . . . . . . . . . . . . . . . . . . . . . 556
318BB Decision about whether to give any preference to petroleum
development .................................. 558
318BC Reference to tribunal before making preference decision. . . . . . . . . 558
318BD Restrictions on giving preference . . . . . . . . . . . . . . . . . . . . . . . . . . . 559
318BE No certificate of public notice before preference decision . . . . . . . . 560
Subdivision 7--Process if preference decision is to give any preference to
petroleum development
318BF Application of sdiv 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561
318BG Notice to applicant and authority to prospect holder . . . . . . . . . . . . 561
318BH Petroleum lease application for all of the land . . . . . . . . . . . . . . . . . 561
318BI Petroleum lease application for part of the land . . . . . . . . . . . . . . . . 562
318BJ No petroleum lease application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 562
Subdivision 8--Deciding mining lease
318BK Application of sdiv 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 562
318BL Additional criteria for recommending conditions or term . . . . . . . . 563
318BM Power to determine relinquishment condition . . . . . . . . . . . . . . . . . 563
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Petroleum and Gas (Production and Safety) Bill 2004
318BN Publication of outcome of application . . . . . . . . . . . . . . . . . . . . . . . 564
Division 3--Obtaining coal mining lease or oil shale mining lease over
land in area of authority to prospect (by or jointly with, or with the consent
of, authority to prospect holder)
318BO Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565
318BP Additional requirements for making application. . . . . . . . . . . . . . . . 565
318BQ Requirement to split application if it relates to petroleum
lease and authority to prospect not held by same person. . . . . . . . . . 566
318BR Power to split application if it includes other land . . . . . . . . . . . . . . 566
318BS Power to split application at applicant's request . . . . . . . . . . . . . . . . 567
318BT Priority for earlier petroleum lease application or proposed
application ..................................... 567
318BU Additional criteria for recommending conditions or term . . . . . . . . 567
Division 4--Coal mining lease and oil shale mining lease applications in
response to Petroleum and Gas (Production and Safety) Act preference
decision
318BV Additional ground for refusing application . . . . . . . . . . . . . . . . . . . 568
Division 5--Obtaining coal mining lease or oil shale mining lease over
land in area of petroleum lease (other than by or jointly with petroleum
lease holder)
318BW Application of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 569
318BX Additional requirements for making application . . . . . . . . . . . . . . . 569
318BY Power to split application if it includes other land . . . . . . . . . . . . . . 570
318BZ Power to split application at applicant's request . . . . . . . . . . . . . . . . 570
318C Notice to petroleum lease holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570
318CA Petroleum lease holder's obligation to negotiate . . . . . . . . . . . . . . . 570
318CB Restriction on issuing certificate of public notice and additional
requirements for grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571
Division 6--Obtaining coal mining lease or oil shale mining lease over
land in area of petroleum lease (by or jointly with petroleum lease holder)
318CC Application of div 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 572
318CD Additional requirements for making application . . . . . . . . . . . . . . . 573
318CE Power to split application if it includes other land . . . . . . . . . . . . . . 573
318CF Power to split application at applicant's request . . . . . . . . . . . . . . . . 574
318CG Additional criteria for recommending conditions. . . . . . . . . . . . . . . 574
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Petroleum and Gas (Production and Safety) Bill 2004
Division 7--Additional provisions for coal and oil shale
exploration tenements
Subdivision 1--Grant of coal or oil shale exploration tenement in area of
authority to prospect
318CH Provisions for coal or oil shale exploration tenement. . . . . . . . . . . . 574
Subdivision 2--Restriction on authorised activities on petroleum
lease land
318CI Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575
Subdivision 3--Conditions
318CJ Notice of grant to authority to prospect holder or applicant . . . . . . . 575
318CK Compliance with obligations under Petroleum and Gas
(Production and Safety) Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576
Division 8--Additional provisions for coal mining leases and oil shale
mining leases
Subdivision 1--Entitlement to coal seam gas
318CL Application of div 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 576
318CM Limited entitlement to mine coal seam gas . . . . . . . . . . . . . . . . . . . 576
318CN Use that may be made under mining lease of incidental coal
seam gas .......................................... 577
318CO Restriction on flaring or venting of incidental coal seam gas. . . . . . 578
Subdivision 2--Provisions for mining coal seam gas from coextensive
natural underground reservoirs
318CP Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579
318CQ Coordination arrangement may be made about mining or
production from reservoir . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579
318CR Restriction on coal seam gas mining from reservoir. . . . . . . . . . . . . 580
318CS Dispute resolution by tribunal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580
Subdivision 3--Conditions
318CT Continuing requirement for coordination arrangement for
particular coal or oil shale mining leases. . . . . . . . . . . . . . . . . . . . . . 581
318CU Obligation to measure and record coal seam gas mined. . . . . . . . . . 582
318CV Obligation to lodge annual reports . . . . . . . . . . . . . . . . . . . . . . . . . . 583
318CW Compliance with obligation to negotiate with petroleum
lease applicant ..................................... 584
318CX Relinquishment report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 584
318CY Surrender report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585
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Petroleum and Gas (Production and Safety) Bill 2004
318CZ Cessation of relinquishment condition for area not
overlapping with authority to prospect . . . . . . . . . . . . . . . . . . . . . . . 585
Subdivision 4--Amendment of relinquishment condition by application
318D Application of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586
318DA Conditions for applying to amend relinquishment condition . . . . . . 586
318DB Authority to prospect holder's obligation to negotiate . . . . . . . . . . . 586
318DC Requirements for making application. . . . . . . . . . . . . . . . . . . . . . . . 587
318DD Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588
318DE Submissions by authority to prospect holder . . . . . . . . . . . . . . . . . . 588
318DF Minister may require further negotiation . . . . . . . . . . . . . . . . . . . . . 589
318DG Deciding amendment application . . . . . . . . . . . . . . . . . . . . . . . . . . . 589
Subdivision 5--Restriction on recommendation to amend other conditions
318DH Interests of relevant petroleum tenure holder to be considered . . . . 590
Subdivision 6--Renewals
318DI General additional provisions for renewal application . . . . . . . . . . . 590
318DJ Applied provisions for renewal application . . . . . . . . . . . . . . . . . . . . 590
318DK Mining lease taken to have development plan until renewal
application decided ................................. 592
Subdivision 7--Consolidations
318DL Restriction on consolidation applications . . . . . . . . . . . . . . . . . . . . . 592
318DM Additional requirements for making consolidation application. . . . 592
318DN Deciding whether to approve proposed development plan. . . . . . . . 593
Subdivision 8--Restriction on assignment or subletting
318DO Requirement for coordination arrangement to assign or sublet
mining lease in area of petroleum lease. . . . . . . . . . . . . . . . . . . . . . . 593
Division 9--Development plans for coal mining leases and oil shale
mining leases
Subdivision 1--General provisions about development plans
318DP Function and purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594
318DQ Requirement to have development plan . . . . . . . . . . . . . . . . . . . . . . 594
318DR Obligation to comply with development plan. . . . . . . . . . . . . . . . . . 595
Subdivision 2--Requirements for proposed initial development plans
318DS Operation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595
318DT General requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 595
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Petroleum and Gas (Production and Safety) Bill 2004
318DU Plan period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 596
318DV Statement about interests of relevant petroleum tenure holder. . . . . 597
318DW Requirement to optimise use of incidental coal seam gas . . . . . . . . 597
318DX Consistency with petroleum lease development plan and
relevant coordination arrangement. . . . . . . . . . . . . . . . . . . . . . . . . . . 597
Subdivision 3--Approval of proposed initial development plans
318DY Application of sdiv 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 597
318DZ Ministerial approval of proposed plan . . . . . . . . . . . . . . . . . . . . . . . 597
318E Amendment of proposed plan before approval . . . . . . . . . . . . . . . . . 598
318EA Deciding whether to approve proposed plan. . . . . . . . . . . . . . . . . . . 598
Subdivision 4--Approval of proposed later development plans
318EB Obligation to lodge proposed later development plan. . . . . . . . . . . . 599
318EC Consequence of failure to comply with notice to lodge
proposed later development plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
318ED Later development plan requirements . . . . . . . . . . . . . . . . . . . . . . . . 600
318EE Mining lease taken to have development plan until decision on
whether to approve proposed later development plan . . . . . . . . . . . . 601
318EF Criteria for deciding whether to approve proposed plan . . . . . . . . . . 602
318EG Power to require partial surrender application . . . . . . . . . . . . . . . . . 602
318EH Steps after, and taking effect, of decision . . . . . . . . . . . . . . . . . . . . . 603
Subdivision 5--Appeals
318EI Right of appeal against cancellation, deferral or refusal . . . . . . . . . . 603
Division 10--Confidentiality of information
318EJ Application of div 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604
318EK Confidentiality obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605
318EL Civil remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605
961 Renumbering of pt 7A, ss 318A-318M . . . . . . . . . . . . . . . . . . . . . . . . . . . . 605
962 Amendment of s 318EO, as renumbered under this Act (What is a
"notifiable road use"). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
963 Amendment of s 318ES, as renumbered under this Act (Liability
to compensate road authority) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
964 Amendment of s 318EW, as renumbered under this Act (Tribunal
review of compensation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
965 Amendment of s 318EY, as renumbered under this Act
(Compensation not affected by change in administration or holder) . . . . . . 607
50
Petroleum and Gas (Production and Safety) Bill 2004
966 Amendment of s 736 (Exclusion of pt 7A for continuance of
existing notifiable road uses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607
967 Amendment of s 417 (Regulation-making power) . . . . . . . . . . . . . . . . . . . . 607
968 Insertion of new pt 19, div 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607
Division 6--Transitional provisions for Petroleum and Gas (Production
and Safety) Act 2004
Subdivision 1--Preliminary
739 Definitions for div 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 608
Subdivision 2--Provisions for special agreement Acts
740 Application of div 6 to special coal mining lease under special
agreement Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611
741 Unfinished special coal mining lease applications . . . . . . . . . . . . . . 611
742 Division 6 prevails over special agreement Acts . . . . . . . . . . . . . . . . 611
743 No compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612
Subdivision 3--Provision for section 3A
744 Application of s 3A to existing mining tenements. . . . . . . . . . . . . . . 612
Subdivision 4--Unfinished coal or oil shale mining lease applications for
land in area of petroleum tenure
745 Application of pt 7AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612
Subdivision 5--Provisions for existing coal mining leases
746 Clarification provision for coal seam gas. . . . . . . . . . . . . . . . . . . . . . 613
747 Continuation of particular rights relating to coal seam gas under
mineral hydrocarbon mining leases . . . . . . . . . . . . . . . . . . . . . . . . . . 613
748 Restriction on flaring or venting coal seam gas . . . . . . . . . . . . . . . . . 615
749 Deferral of ss 318CN(2) and 318CO for particular existing coal
mining lease holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615
750 Deferral of s 318CR(1) for existing coal mining lease holders . . . . . 615
Subdivision 6--Modified application of section 318CI for particular
existing exploration tenements overlapping with petroleum lease
751 Application of sdiv 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615
752 Modified application of s 318CI until 3 months after commencement 616
753 Power to relinquish if activity restricted . . . . . . . . . . . . . . . . . . . . . . 616
Subdivision 7--Particular provision for existing mineral development
licences that overlap with a Petroleum Act lease
754 Application of sdiv 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 617
51
Petroleum and Gas (Production and Safety) Bill 2004
755 Substituted restriction on authorised activities . . . . . . . . . . . . . . . . . 618
Subdivision 8--Development plans
756 Application of sdiv 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 618
757 Deferral of obligation to comply with development plan . . . . . . . . . 619
758 Obligation to lodge proposed development plan . . . . . . . . . . . . . . . . 619
759 Application of pt 7AA, div 9, sdiv 3 for approval of proposed plan . 620
760 Additional requirement for proposed development plan for
mineral hydrocarbon mining lease. . . . . . . . . . . . . . . . . . . . . . . . . . . 620
761 Additional condition for proposed development plan for mineral
hydrocarbon mining lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621
762 Omission of particular conditions to be superseded by
development plan ................................ 622
763 Development plan requirements for renewal applications if no
current development plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622
969 Amendment of schedule (Dictionary) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 623
PART 22--AMENDMENT OF NATIVE TITLE (QUEENSLAND)
ACT 1993
970 Act amended in pt 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626
971 Amendment of s 4 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626
972 Amendment of s 17 (Confirmation of ownership of natural resources etc.) . 626
973 Amendment of s 144 (Declaration about compulsory acquisitions) . . . . . . . 626
PART 23--AMENDMENT OF QUEENSLAND INTERNATIONAL
TOURIST CENTRE AGREEMENT ACT REPEAL ACT 1989
974 Act amended in pt 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
975 Amendment of s 18 (Operation of Acts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
PART 24--AMENDMENT OF THIESS PEABODY COAL PTY.
LTD. AGREEMENT ACT 1962
976 Act amended in pt 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
977 Insertion of new s 4B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
4B Termination of cl 18 of agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . 627
PART 25--AMENDMENT OF TORRES STRAIT ISLANDER
LAND ACT 1991
978 Act amended in pt 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628
979 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 628
980 Amendment of s 85 (Royalties in relation to mining on Torres
Strait Islander land) ...................................... 628
52
Petroleum and Gas (Production and Safety) Bill 2004
PART 26--AMENDMENT OF VALUATION OF LAND ACT 1944
981 Act amended in pt 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
982 Amendment of s 2 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
983 Amendment of s 26 (Valuation of petroleum leases) . . . . . . . . . . . . . . . . . . 629
PART 27--AMENDMENT OF WATER ACT 2000
984 Act amended in pt 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 629
985 Amendment of s 203 (Definition for pt 6). . . . . . . . . . . . . . . . . . . . . . . . . . . 629
986 Amendment of s 206 (Applying for a water licence) . . . . . . . . . . . . . . . . . . 630
987 Insertion of new s 206A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 631
206A Additional requirements for application by petroleum tenure holder 631
988 Amendment of s 209 (Applications that may be decided without
public notice) ......................................... 631
989 Amendment of s 213 (Contents of water licence) . . . . . . . . . . . . . . . . . . . . . 632
990 Amendment of s 214 (Conditions of water licence) . . . . . . . . . . . . . . . . . . . 632
991 Amendment of s 222 (Transferring water licence to another person). . . . . . 632
992 Amendment of s 227 (Cancelling water licence) . . . . . . . . . . . . . . . . . . . . . 633
993 Amendment of sch 4 (Dictionary). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633
SCHEDULE 1 . . . . . . . . . . . . . . . . . . . . . . . . 635
REVIEWS AND APPEALS
SCHEDULE 2 . . . . . . . . . . . . . . . . . . . . . . . . 640
DICTIONARY
2004
A BILL
FOR
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
s1 54 s3
Petroleum and Gas (Production and Safety) Bill 2004
The Parliament of Queensland enacts-- 1
CHAPTER 1--PRELIMINARY 2
PART 1--INTRODUCTION 3
1 Short title 4
This Act may be cited as the Petroleum and Gas (Production and Safety) 5
Act 2004. 6
2 Commencement 7
(1) Section 968, to the extent it inserts part 19, division 6, subdivisions 1 8
and 2 in the Mineral Resources Act commences on the date of assent.1 9
(2) Otherwise, this Act commences on a day to be fixed by proclamation. 10
PART 2--PURPOSE AND APPLICATION OF ACT 11
3 Purpose of Act 12
(1) The purpose of this Act is to facilitate and regulate the carrying out of 13
responsible petroleum activities and the development of a safe, efficient 14
and viable petroleum and fuel gas industry, in a way that-- 15
(a) manages the State's petroleum resources-- 16
(i) in a way that has regard to the need for ecologically 17
sustainable development; and 18
1 Section 968 (Insertion of new pt 19, div 6)
Mineral Resources Act, inserted part 19, division 6 (Transitional provisions for
Petroleum and Gas (Production and Safety) Act 2004), subdivisions 1 (Preliminary)
and 2 (Provisions for special agreement Acts)
s3 55 s3
Petroleum and Gas (Production and Safety) Bill 2004
(ii) for the benefit of all Queenslanders; and 1
(b) enhances knowledge of the State's petroleum resources; and 2
(c) creates an effective and efficient regulatory system for the 3
carrying out of petroleum activities and the use of petroleum and 4
fuel gas; and 5
(d) encourages and maintains an appropriate level of competition in 6
the carrying out of petroleum activities; and 7
(e) creates an effective an efficient regulatory system for the 8
construction and operation of transmission pipelines; and 9
(f) ensures petroleum activities are carried on in a way that 10
minimises conflict with other land uses; and 11
(g) optimises coal seam gas production and coal or oil shale mining 12
in a safe and efficient way; and 13
(h) appropriately compensates owners or occupiers of land; and 14
(i) encourages responsible land management in the carrying out of 15
petroleum activities; and 16
(j) facilitates constructive consultation with people affected by 17
activities authorised under this Act; and 18
(k) regulates and promotes the safety of persons in relation to 19
operating plant.2 20
(2) In this section-- 21
"petroleum activities" means-- 22
(a) the exploration, distillation, production, processing, refining, 23
storage and transport of petroleum; and 24
(b) the distillation, production, processing, refining, storage and 25
transport of fuel gas; and 26
(c) authorised activities for petroleum authorities; and 27
(d) other activities authorised under this Act for petroleum 28
authorities. 29
2 For what is operating plant, see section 670 (What is an "operating plant").
s4 56 s6
Petroleum and Gas (Production and Safety) Bill 2004
4 Act binds all persons 1
(1) This Act binds all persons, including the State, and, to the extent the 2
legislative power of the Parliament permits, the Commonwealth and the 3
other States. 4
(2) However, the Commonwealth or a State can not be prosecuted for an 5
offence against this Act. 6
5 Application of Act to coastal waters of the State 7
(1) This Act applies to the coastal waters of the State as if the coastal 8
waters of the State were part of the State. 9
(2) However, this Act does not apply to the adjacent area under the 10
Petroleum (Submerged Lands) Act 1982. 11
6 Relationship with Mineral Resources Act 12
(1) This section does not apply to a coal or oil shale mining tenement. 3
13
(2) The Mineral Resources Act does not limit or otherwise affect-- 14
(a) the power to grant or renew a petroleum authority over land (the 15
"overlapping land") in the area of a mining tenement; or 16
(b) a petroleum authority already granted over land (also the 17
"overlapping land") in the area of an existing mining tenement. 18
(3) However-- 19
(a) if the petroleum authority is a pipeline licence or petroleum 20
facility licence--it is subject to section 400 or 440;4 and 21
(b) if the petroleum authority is another type of petroleum 22
authority--it is subject to subsections (4) to (6). 23
(4) If the mining tenement is a mining lease (other than a transportation 24
mining lease), an authorised activity for the petroleum authority may be 25
carried out on the overlapping land only if-- 26
3 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).
4 Sections 400 and 440 (Restriction if there is an existing mining lease)
s6 57 s6
Petroleum and Gas (Production and Safety) Bill 2004
(a) the mining lease holder has agreed in writing to the carrying out 1
of the activity; and 2
(b) a copy of the agreement has been lodged at the following office 3
(the "relevant office")-- 4
(i) the office of the department for lodging the agreement, as 5
stated in a gazette notice by the chief executive; 6
(ii) if no office is gazetted under subparagraph (i)--the office of 7
the chief executive; and 8
(c) the agreement is still in force. 9
(5) If the mining tenement is an exploration permit, mineral development 10
licence or transportation mining lease and the petroleum authority is an 11
authority to prospect, an authorised activity for the petroleum authority 12
may be carried out on the overlapping land only if-- 13
(a) the mining tenement holder has agreed in writing to the carrying 14
out of the activity, a copy of the agreement has been lodged at the 15
relevant office and the agreement is still in force; or 16
(b) carrying out the activity does not adversely affect the carrying 17
out of an authorised activity for the tenement that has already 18
started. 19
(6) If the mining tenement is an exploration permit or a mineral 20
development licence and the petroleum authority is a petroleum lease, an 21
authorised activity for the mining tenement may be carried out on the 22
overlapping land only if-- 23
(a) the petroleum lease holder has agreed in writing to the carrying 24
out of the activity; and 25
(b) a copy of the agreement has been lodged at the relevant office; 26
and 27
(c) the agreement is still in force. 28
(7) In this section-- 29
"transportation mining lease" means a mining lease granted under the 30
Mineral Resources Act, section 316.5 31
5 Mineral Resources Act, section 316 (Mining lease for transportation through land)
s7 58 s9
Petroleum and Gas (Production and Safety) Bill 2004
7 Act does not affect other rights or remedies 1
(1) Subject to sections 294 and 856 and chapter 3, part 8, this Act does 2
not affect or limit a civil right or remedy that exists apart from this Act, 3
whether at common law or otherwise.6 4
(2) Without limiting subsection (1), compliance with this Act does not 5
necessarily show that a civil obligation that exists apart from this Act has 6
been satisfied or has not been breached. 7
(3) In addition, a breach of an obligation under this Act does not, of 8
itself, give rise to an action for breach of statutory duty or another civil 9
right or remedy. 10
(4) This Act does not limit a court's powers under the Penalties and 11
Sentences Act 1992 or another law. 12
8 Native title 13
(1) This section applies for applying this Act to land where native title 14
exists. 15
(2) A native title holder within the meaning of the Commonwealth 16
Native Title Act, section 2247 has the procedural and other rights that the 17
holder has under that Act. 18
(3) Subsection (2) applies despite any other provision of this Act. 19
PART 3--INTERPRETATION 20
Division 1--Dictionary 21
9 Definitions 22
The dictionary in schedule 2 defines particular words used in this Act. 23
6 Sections 294 (Responsibility for well or bore after decommissioning) and 856
(Protection from liability for particular persons)
Chapter 3, part 8 (Confidentiality of information)
7 Commonwealth Native Title Act, section 224 (Native title holder)
s 10 59 s 10
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Key definitions 1
10 Meaning of "petroleum" 2
(1) "Petroleum" is-- 3
(a) a substance consisting of hydrocarbons that occur naturally in the 4
earth's crust; or 5
(b) a substance necessarily extracted or produced as a by-product of 6
extracting or producing a hydrocarbon mentioned in 7
paragraph (a); or 8
(c) a fluid that-- 9
(i) is extracted or produced from coal or oil shale by a chemical 10
or thermal process or that is a by-product of that process; 11
and 12
(ii) consists of, or includes, hydrocarbons; or 13
(d) another substance prescribed under a regulation, consisting of, or 14
including, hydrocarbons; or 15
(e) a gas, that occurs naturally in the earth's crust, as prescribed 16
under a regulation. 17
(2) A substance mentioned in subsection (1)(c) is a "gasification or 18
retorting product". 19
(3) To remove any doubt, it is declared that "petroleum" does not 20
include any of the following-- 21
(a) alginite; 22
(b) coal; 23
(c) lignite; 24
(d) peat; 25
(e) oil shale;8 26
(f) torbanite; 27
(g) water. 28
8 See section 300 (What is "oil shale").
s 11 60 s 11
Petroleum and Gas (Production and Safety) Bill 2004
(4) A substance does not cease to be petroleum merely because it is 1
injected or reinjected into a natural underground reservoir. 2
(5) To remove any doubt, it is declared that, for this Act and petroleum 3
authorities under it, this section preserves, for this Act, the effect of 4
section 150(2) and (3) of the 1923 Act.9 5
(6) In this section-- 6
"hydrocarbon" means a hydrocarbon in a gaseous, liquid, or solid state. 7
11 Meaning of "LPG" and "fuel gas" 8
(1) "LPG", also called `LP gas' and `liquefied petroleum gas', is a 9
substance that-- 10
(a) is in a gaseous state at standard temperature and pressure; and 11
(b) is more than half propane, propylene (also called propene) or 12
butane, in any combination; and 13
(c) has been processed to be suitable for use for any other purpose.10 14
(2) "Fuel gas" is-- 15
(a) LPG; or 16
(b) processed natural gas; or 17
(c) another substance prescribed under a regulation that is similar to 18
LPG or processed natural gas. 19
(3) In this section-- 20
"processed natural gas" means a substance that-- 21
(a) is in a gaseous state at standard temperature and pressure; and 22
(b) consists of naturally occurring hydrocarbons and other 23
substances; and 24
(c) is more than half, by volume, methane; and 25
(d) has been processed to be suitable for use by consumers of fuel 26
gas. 27
9 Section 150 of the 1923 Act (Declaration about certain permits, leases and licences)
10 See section 619 (Who is a "consumer" of fuel gas).
s 12 61 s 14
Petroleum and Gas (Production and Safety) Bill 2004
"standard temperature and pressure" means an absolute pressure 1
of 101.325 kPa at a temperature of 15ºC. 2
12 What is a "prescribed storage gas" 3
A "prescribed storage gas" is any of the following-- 4
(a) carbon dioxide; 5
(b) a gas associated with, or that results from, petroleum production; 6
7
Example--
8
fuel gas produced at a processing plant
(c) another gas prescribed under a regulation as being suitable for 9
storage in a natural underground reservoir. 10
11
Example of gases suitable for storage in a natural underground reservoir--
12
gases produced from a waste disposal tip
13 What is a "natural underground reservoir" 13
(1) A "natural underground reservoir" is a part of a geological 14
formation or structure-- 15
(a) in which petroleum or another gas prescribed under a regulation 16
has accumulated; or 17
(b) that is suitable to store petroleum or a prescribed storage gas. 18
(2) A geological formation or structure mentioned in subsection (1) does 19
not cease to be a natural underground reservoir merely because it has been 20
modified for petroleum production or storage or to store a prescribed 21
storage gas. 22
(3) In this section-- 23
"geological formation" includes a coal seam. 24
14 What is "exploring" for petroleum 25
"Exploring", for petroleum, is carrying out an activity for the purpose of 26
finding petroleum or natural underground reservoirs. 27
28
Examples--
29
· conducting a geochemical, geological or geophysical survey
s 15 62 s 17
Petroleum and Gas (Production and Safety) Bill 2004
1
·. drilling a well
2
· carrying out testing in relation to a well
3
· taking a sample for chemical or other analysis
15 When petroleum is "produced" 4
(1) For this Act, petroleum is "produced" when it is recovered or 5
released to ground level from a natural underground reservoir in which it 6
has been contained or from which it is extracted. 7
(2) If, under the Mineral Resources Act, section 318CM,11 a coal mining 8
lease or oil shale mining lease holder mines incidental coal seam gas, for 9
this Act, the lease holder "produces" it. 10
16 What is a "pipeline" 11
(1) A "pipeline" is a pipe, or system of pipes, for transporting petroleum 12
or fuel gas. 13
(2) A reference to a "pipeline" includes-- 14
(a) a part of the pipeline; and 15
(b) a thing connected to or associated with the pipeline that is 16
necessary for its operation. 17
18
Examples of things that may be included in a reference to a pipeline--
19
· meter stations, scraper stations, valve stations, pumping stations or
20
compressor stations
21
· plant and equipment, machinery and tanks
22
· corrosion protection apparatus
23
· communications equipment and towers
17 What is a "petroleum facility" 24
(1) A "petroleum facility" is a facility for the distillation, processing, 25
refining, storage or transport of petroleum, other than a distribution 26
pipeline. 27
28
Examples of things that may be a petroleum facility--
29
· a storage depot
11 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)
s 18 63 s 18
Petroleum and Gas (Production and Safety) Bill 2004
1
· a meter station
2
· a petroleum processing plant
3
· an oil refinery
4
· an LPG separation plant
(2) However, the following facilities are not a petroleum facility-- 5
(a) a facility constructed or operated under the-- 6
(i) Amoco Australia Pty. Limited Agreement Act 1961; or 7
(ii) Ampol Refineries Limited Agreement Act 1964; 8
(b) a facility for the distillation, processing, refining, storage or 9
transport of petroleum authorised under a-- 10
(i) petroleum lease or pipeline licence under this Act; or 11
(ii) 1923 Act petroleum tenure. 12
18 Types of authority under Act 13
(1) The following are the types of authority under this Act-- 14
(a) an "authority to prospect"-- 15
(i) granted under section 41;12 or 16
(ii) continued in force under section 83 or 119;13 or 17
(iii) renewed under section 84; 14
18
(b) a "petroleum lease"-- 19
(i) granted under section 120, 132, 340 or 356 or chapter 15;15 20
or 21
(ii) continued in force under section 163; or 22
(iii) renewed under section 164; 23
12 Section 41 (Deciding whether to grant authority to prospect)
13 Section 83 (Continuing effect of authority for renewal application) or 119
(Continuing effect of authority to prospect for ATP-related application)
14 Section 84 (Deciding application)
15 Section 120 (Right to grant if requirements for grant met), 132 (Deciding whether to
grant petroleum lease), 340 (Right to grant if particular requirements met) or 356
(Right to grant if particular requirements met)
Chapter 15 (Repeal and transitional provisions)
s 18 64 s 18
Petroleum and Gas (Production and Safety) Bill 2004
(c) a "data acquisition authority", granted under section 178; 1
(d) a "water monitoring authority" granted under section 192; 2
(e) a "survey licence"-- 3
(i) granted under section 396; or 4
(ii) continued in force under section 481; or 5
(iii) renewed under section 482; 6
(f) a "pipeline licence"-- 7
(i) granted under section 410; or 8
(ii) continued in force under section 481; or 9
(iii) renewed under section 482; 10
(g) a "petroleum facility licence"-- 11
(i) granted under section 446; or 12
(ii) continued in force under section 481; or 13
(iii) renewed under section 482; 14
(h) a "gas work licence" granted under section 728(1)(a); 16
15
(i) a "gas work authorisation" granted under section 728(1)(b). 16
(2) The authorities, other than a gas work licence or gas work 17
authorisation, are collectively referred to as a "petroleum authority". 18
(3) Authorities to prospect and petroleum leases are collectively referred 19
to as a "petroleum tenure". 20
16 Section 163 (Continuing effect of lease for renewal application)
Section 164 (Deciding renewal application)
Section 178 (Deciding application for data acquisition authority)
Section 192 (Deciding application for water monitoring authority)
Section 396 (Deciding survey licence application)
Section 410 (Deciding whether to grant licence)
Section 446 (Deciding whether to grant licence)
Section 481 (Continuing effect of licence for renewal application)
Section 482 (Deciding application)
Section 728 (Chief inspector's power to issue)
s 19 65 s 21
Petroleum and Gas (Production and Safety) Bill 2004
(4) Survey licences, pipeline licences17 and petroleum facility licences 1
are collectively referred to as a "licence". 2
19 Who is an "eligible person" 3
An "eligible person" is-- 4
(a) an adult; or 5
(b) a company or a registered body under the Corporations Act; or 6
(c) a government owned corporation. 7
20 What are the "conditions" of a petroleum authority 8
(1) The "conditions" of a petroleum authority are-- 9
(a) the conditions stated in it from time to time; and 10
(b) the authority holder's obligations under chapters 2 to 5; and 11
(c) any condition of the authority under chapter 2, 3 or 5; and 12
(d) a condition that an authority holder must ensure each person 13
acting for the holder who carries out an authorised activity for the 14
authority complies with its conditions to the extent they apply to 15
the carrying out of the activity.18 16
(2) A condition mentioned in subsection (1)(b) or (c) is a "mandatory 17
condition" of the authority. 18
21 What are the "provisions" of a petroleum authority 19
(1) A reference in this Act to an authority under this Act includes a 20
reference to its provisions. 21
(2) A reference in this Act to the provisions of the authority is a reference 22
to its mandatory or other conditions and any thing written in it. 23
17 For the types of pipeline licence, see section 404 (Licence types--locality or point
to point).
18 For who may carry out an authorised activity for the holder, see section 563 (Who
may carry out authorised activity for petroleum authority holder).
s 22 66 s 23
Petroleum and Gas (Production and Safety) Bill 2004
22 What is an "authorised activity" 1
(1) An "authorised activity", for a petroleum authority, is an activity 2
that its holder is, under this Act or the authority, entitled to carry out in 3
relation to the authority. 4
5
Note--
6
1. The provisions of the authority may restrict the carrying out of authorised
7
activities. See sections 42, 85, 123, 165, 178, 396, 412, 447, 484 and 790(3).19
8
2. The carrying out of authorised activities is subject to the restrictions and the
9
authority holder's rights and obligations under chapters 2 to 5. See section 562.20
10
3. For who may carry out an authorised activity for a petroleum authority holder, see
11
section 563.21
(2) An "authorised activity", for a coal or oil shale mining tenement, is 12
an activity that its holder is, under the Mineral Resources Act or the 13
tenement, entitled to carry out or exercise in relation to the tenement. 14
23 What is a "work program" for an authority to prospect 15
(1) The "work program" for an authority to prospect is its current 16
initial or later work program approved under chapter 2, part 1, division 3, 17
as amended from time to time under chapter 2, part 1, division 3, 18
subdivision 6.22 19
(2) For subsection (1), the work program is current if the period to which 20
the program applies has not ended.23 21
19 Sections 42 (Provisions of authority to prospect), 85 (Provisions and term of
renewed authority), 123 (Provisions of petroleum lease), 165 (Provisions and term
of renewed lease), 178 (Deciding application for data acquisition authority), 396
(Deciding survey licence application), 412 (Provisions of licence), 447 (Provisions
of licence), 484 (Provisions and term of renewed licence) and 790 (Types of
noncompliance action that may be taken)
20 Section 562 (General restriction on carrying out authorised activities)
21 Section 563 (Who may carry out authorised activity for petroleum authority holder)
22 Chapter 2, part 1, division 3, subdivision 6 (Amending work programs)
23 See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
See also sections 83(4) (Continuing effect of authority for renewal application), and
91 (Inclusion of evaluation program in work program).
s 24 67 s 26
Petroleum and Gas (Production and Safety) Bill 2004
24 What is a "development plan" for a petroleum lease 1
(1) The "development plan" for a petroleum lease is its current initial or 2
later development plan approved under chapter 2, part 2, division 4. 3
(2) For subsection (1), the development plan is current if the period to 4
which the plan applies has started and has not ended.24 5
Division 3--Other matters relating to interpretation 6
25 Notes in text 7
A note in the text of this Act is part of this Act. 8
PART 4--PROPERTY IN PETROLEUM 9
26 Petroleum the property of the State 10
(1) This section is subject to section 28 and chapter 2, part 6, 11
division 3.25 12
(2) All petroleum as follows is, and always has been, the property of the 13
State-- 14
(a) petroleum on the surface of land, if it was produced in the State; 15
(b) petroleum in a natural underground reservoir in the State, other 16
than petroleum in the reservoir produced outside the State and 17
injected or reinjected into the reservoir. 18
(3) To remove any doubt, it is declared that-- 19
(a) a person does not acquire any property in petroleum merely 20
because the person discovers petroleum in a natural underground 21
reservoir; and 22
24 See also section 146 (Petroleum lease taken to have development plan until decision
on whether to approve proposed development plan).
25 Chapter 2, part 6, division 3 (Provisions for stored petroleum or prescribed gas after
petroleum lease ends)
s 27 68 s 27
Petroleum and Gas (Production and Safety) Bill 2004
(b) subsection (2)(a) applies whether or not the land is freehold or 1
other land; and 2
(c) subsection (2)(b) applies whether or not the natural underground 3
reservoir is in or under freehold or other land. 4
(4) This section applies despite any other Act, grant, title or other 5
document in force from the commencement of this section. 6
(5) In this section-- 7
"the State" does not include any of the adjacent area under the Petroleum 8
(Submerged Lands) Act 1982. 9
27 Petroleum reservation in land grants 10
(1) This section applies to each grant under another Act, other than the 11
1923 Act, of a right-- 12
(a) relating to land that, immediately before the grant, was 13
unallocated State land as defined under the Land Act 1994; and 14
(b) that is, or was, issued on or after the commencement of the 1923 15
Act.26 16
(2) The grant is taken to contain a reservation to the State of-- 17
(a) all petroleum on or below the surface of the land; and 18
(b) the exclusive right do the following in relation to the land-- 19
(i) to enter and carry out any petroleum-related activity; 20
(ii) to authorise, under the provisions of this Act or another Act, 21
others to carry out any petroleum-related activity; 22
(iii) to regulate, under the provisions of this Act or another Act, 23
petroleum-related activities carried out by others. 24
(3) In this section-- 25
"grant", of a right, includes an authority, lease, licence, permit or other 26
instrument of tenure, however called. 27
"petroleum-related activity" means any activity that may be carried out 28
under this Act by the holder of any petroleum authority. 29
26 The 1923 Act commenced on 12 November 1923.
s 28 69 s 29
Petroleum and Gas (Production and Safety) Bill 2004
28 Property in petroleum produced 1
(1) If a person produces petroleum, it becomes the person's property-- 2
(a) if the petroleum is produced under this Act; or 3
(b) for incidental coal seam gas--if it is mined under the Mineral 4
Resources Act, section 318CM.27 5
(2) However, subsection (1) is subject to-- 6
(a) any coordination arrangement or storage agreement to which the 7
person is a party; and 8
(b) any order of the tribunal under section 116;28 and 9
(c) chapter 2, part 6, division 3;29 and 10
(d) any storage agreement to which the person is a party. 11
(3) Subsection (1) does not cease to apply merely because the petroleum 12
is injected or reinjected into a natural underground reservoir. 13
PART 5--GENERAL PROVISIONS FOR PETROLEUM 14
AUTHORITIES 15
29 Graticulation of earth's surface into "blocks" and "sub-blocks" 16
(1) A "block" is the land resulting from a notional division of the earth's 17
surface-- 18
(a) by 2 meridians of longitude 5 minutes apart, each meridian being 19
a multiple of 5 minutes of longitude from the meridian of 20
Greenwich; and 21
(b) by 2 parallels of latitude 5 minutes apart, each parallel being a 22
multiple of 5 minutes of latitude from the equator. 23
27 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)
28 Section 116 (Dispute resolution by tribunal)
29 Chapter 2, part 6, division 3 (Provisions for stored petroleum or prescribed storage
gas after petroleum lease ends)
s 30 70 s 30
Petroleum and Gas (Production and Safety) Bill 2004
(2) A "sub-block" is the land resulting from a notional division of a 1
block into 25 areas, each sub-block being bounded by 2 meridians 1 minute 2
of longitude apart and 2 parallels of latitude 1 minute of latitude apart. 3
(3) Each block and sub-block must be identified in the way approved by 4
the chief executive.30 5
30 Petroleum authority does not create an interest in land 6
The granting of a petroleum authority does not create an interest in any 7
land. 8
30 See however section 298 (Description of petroleum leases for ch 3).
s 31 71 s 31
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 2--PETROLEUM TENURES AND 1
RELATED MATTERS 2
3
Note--
4
1. For the requirement for a petroleum tenure, see section 800.31
5
2. Chapter 3 imposes requirements for and restrictions on the granting of, and
6
restrictions on authorised activities that may be carried out under, particular
7
petroleum tenures. See section 297.32
PART 1--AUTHORITIES TO PROSPECT 8
Division 1--Key authorised activities 9
31 Operation of div 1 10
(1) This division provides for the key authorised activities for an 11
authority to prospect.33 12
(2) The authorised activities may be carried out despite the rights of an 13
owner or occupier of land on which they are exercised. 14
(3) However, the carrying out of the authorised activities is subject to-- 15
(a) section 6; and 16
(b) chapter 3, part 4, division 2; and 17
(c) chapters 5 and 9; and 18
(d) the mandatory and other conditions of the authority; and 19
31 Section 800 (Restriction on petroleum tenure activities)
32 Chapter 3 (Provisions for coal seam gas)
Section 297 (Relationship with chs 2 and 5 and ch 15)
33 For other authorised activities, see part 4 (Water rights for petroleum tenures),
chapter 5, part 2, division 3 (Access to private land outside area of petroleum
authority) and part 8 (General provisions for conditions and authorised activities).
s 32 72 s 33
Petroleum and Gas (Production and Safety) Bill 2004
(e) any exclusion or restriction provided for in the authority on the 1
carrying out of the activities; and 2
(f) any other relevant Act or law.34 3
32 Exploration and testing 4
(1) The authority to prospect holder may carry out any of the following 5
activities in the area of the authority-- 6
(a) exploring for petroleum; 7
(b) testing for petroleum production; 8
(c) evaluating the feasibility of petroleum production; 9
(d) evaluating or testing natural underground reservoirs for 10
petroleum storage. 11
(2) However, the holder must not carry out any of the following-- 12
(a) extraction or production of a gasification or retorting product 13
from coal or oil shale by a chemical or thermal process; 14
(b) exploration for coal or oil shale to carry out extraction or 15
production mentioned in paragraph (a). 16
(3) The carrying out of activities mentioned in subsection (1), other than 17
exploring for petroleum, is subject to section 73.35 18
(4) The rights under subsection (1) may be exercised only by or for the 19
holder.36 20
33 Incidental activities 21
(1) The authority to prospect holder may carry out an activity 22
(an "incidental activity") in the area of the authority if carrying out the 23
34 Section 6 (Relationship with Mineral Resources Act)
Chapter 3 (Provisions for coal seam gas), part 4, division 2 (Restriction on
authorised activities on coal mining lease or oil shale mining lease land)
Chapters 5 (Common petroleum authority provisions) and 9 (Safety)
35 Section 73 (Permitted period for production or storage testing)
36 For who may exercise the rights for the holder, see section 563 (Who may carry out
authorised activity for petroleum authority holder).
s 34 73 s 34
Petroleum and Gas (Production and Safety) Bill 2004
activity is reasonably necessary for, or incidental to, an authorised activity 1
under section 32(1).37 2
3
Examples of incidental activities--
4
1. constructing or operating plant or works, including, for example, communication
5
systems, pipelines associated with petroleum testing, powerlines, roads, separation
6
plants, evaporation or storage ponds, tanks and water pipelines
7
2. constructing or using temporary structures or structures of an industrial or
8
technical nature, including, for example, mobile and temporary camps
9
3. removing vegetation for, or for the safety of, exploration or testing under
10
section 32(1)
(2) However, constructing or using a structure, other than a temporary 11
structure, for office or residential accommodation is not an incidental 12
activity.38 13
Division 2--Obtaining authority to prospect 14
Subdivision 1--Preliminary 15
34 Operation of div 2 16
(1) This division provides for a process for the granting of authorities to 17
prospect by competitive tender. 18
(2) To remove any doubt, it is declared that an authority to prospect can 19
only be granted under this division or division 8, subdivision 2.39 20
37 See also part 10 (General provisions for petroleum wells, water supply bores and
water observation bores), section 239 (Coordination arrangement overrides relevant
leases), chapter 5 (Common petroleum authority provisions) and section 20 (What
are the "conditions" of a petroleum authority).
38 For development generally, see the Integrated Planning Act 1997, chapter 3
(Integrated development assessment system (IDAS)) and schedule 9 (Development
that is exempt development for a planning scheme).
39 Division 8, subdivision 2 (Dividing authorities to prospect)
s 35 74 s 35
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Competitive tenders 1
35 Call for tenders 2
(1) The Minister may publish a gazette notice (a "call for tenders") 3
inviting tenders for an authority to prospect.40 4
(2) The call must state-- 5
(a) the proposed area of the authority; and 6
(b) that, under section 99,41 particular land may be excluded land for 7
the authority; and 8
(c) the day and time by which tenders in response to it must be made 9
(the "closing time" for the call); and 10
(d) that the tenders must be lodged before the closing time for the 11
call at the place stated in the approved form for making the 12
tender; and 13
(e) that details about each of the following are available at a stated 14
place-- 15
(i) any proposed conditions of the authority, other than 16
mandatory conditions, that are likely to impact significantly 17
on exploration in the proposed area; 18
(ii) the required program period for the initial work program for 19
the authority; 20
(iii) any criteria ("special criteria"), other than the work 21
program criteria and capability criteria, proposed to be used 22
to decide whether to grant the authority, or to decide its 23
provisions;42 24
(iv) the weight proposed to be given to each special criteria, 25
work program criteria and capability criteria. 26
(3) The call may state other relevant matters, including, for example, 27
matters relevant to the work program criteria and capability criteria. 28
40 See however chapter 3, part 3, division 1 (Exclusion of power to call for tenders).
41 Section 99 (Minister's power to decide excluded land)
See also section 100 (Minister may add excluded land).
42 For the capability and work program criteria, see sections 43 (Criteria for decisions)
and 49 (Criteria).
s 36 75 s 37
Petroleum and Gas (Production and Safety) Bill 2004
(4) The area of the authority must comply with section 98.43 1
(5) Subsection (2)(e)(i) does not limit the Minister's power under 2
section 4244 to decide conditions of the authority if it is granted. 3
36 Right to tender 4
(1) A person45 may, by a tender made under section 37, tender for a 5
proposed authority to prospect the subject of a call for tenders. 6
(2) However, the tender can not be made-- 7
(a) after the closing time for the call; or 8
(b) for only part of the area of the proposed authority. 9
37 Requirements for making tender 10
A tender for an authority to prospect must-- 11
(a) be in the approved form; and 12
(b) be lodged at-- 13
(i) the office or place for lodging tenders for proposed 14
authorities to prospect, as stated in a gazette notice by the 15
chief executive; or 16
(ii) if no office or place is gazetted under subparagraph (i)--the 17
office or place stated in the approved form; or 18
(iii) otherwise--the office of the chief executive; 19
(c) address the capability criteria;46 and 20
(d) include-- 21
(i) a statement about how and when the tenderer proposes to 22
consult with, and keep informed, each owner and occupier 23
of private or public land on which authorised activities for 24
43 Section 98 (Area of authority to prospect)
44 Section 42 (Provisions of authority to prospect)
45 See however section 41(2) (Deciding whether to grant authority to prospect).
46 For the criteria, see section 43 (Criteria for decisions).
s 38 76 s 40
Petroleum and Gas (Production and Safety) Bill 2004
the proposed authority are, or are likely to be, carried out;47 1
and 2
(ii) a proposed work program that complies with the initial 3
work program requirements;48 and 4
(e) be accompanied by the fee prescribed under a regulation. 5
38 Right to terminate call for tenders 6
(1) The Minister may, by gazette notice, terminate a call for tenders at 7
any time before deciding to grant an authority to prospect to a person who 8
has made a tender in response to the call. 9
(2) All tenders in response to the call lapse when the call is terminated. 10
(3) No amount, whether by way of compensation, reimbursement or 11
otherwise is payable by the State to any person for or in connection with 12
the termination. 13
Subdivision 3--Deciding tenders 14
39 Process for deciding tenders 15
Subject to section 43,49 any process the Minister considers appropriate 16
may be used to decide a call for tenders, including, for example, by a 17
process appointing a preferred tenderer on the tenders made in response to 18
the call. 19
40 Provisions for preferred tenderers 20
(1) The Minister may require a preferred tenderer for the call for tenders 21
to-- 22
(a) pay any amounts necessarily incurred, or to be incurred, to 23
enable the authority to prospect to be granted; and 24
47 See section 74 (Obligation to consult with particular owners and occupiers).
48 See division 3, subdivision 2 (Requirements for proposed initial work programs).
49 Section 43 (Criteria for decisions)
s 41 77 s 41
Petroleum and Gas (Production and Safety) Bill 2004
1
Example--
2
amounts required to comply with the Commonwealth Native Title Act,
3
part 2, division 3, subdivision P50
(b) to do all or any of the following within a stated reasonable 4
period-- 5
(i) pay the annual rent for the first year of the authority; 6
(ii) give, under section 488,51 security for the lease. 7
(2) If a preferred tenderer does not-- 8
(a) comply with a requirement under subsection (1); or 9
(b) do all things reasonably necessary to allow an authority to 10
prospect to be granted to the tenderer; 11
the Minister may appoint another tenderer to be the preferred tenderer. 12
41 Deciding whether to grant authority to prospect 13
(1) The Minister may, after the closing time for the call for tenders-- 14
(a) grant an authority to prospect to 1 tenderer; or 15
(b) refuse to grant any authority to prospect. 16
(2) However-- 17
(a) before deciding to grant the authority, the Minister must decide 18
whether to approve the applicant's proposed initial work program 19
for the authority;52 and 20
(b) the Minister can not grant the authority unless-- 21
(i) the tenderer is an eligible person; and 22
(ii) the proposed program has been approved; and 23
(iii) a relevant environmental authority for the authority to 24
prospect has been issued. 25
50 Commonwealth Native Title Act, part 2, division 3, subdivision P (Right to
negotiate)
51 Section 488 (Power to require security for petroleum authority)
52 See also division 3, subdivision 3 (Criteria for deciding whether to approve
proposed initial work programs).
s 42 78 s 42
Petroleum and Gas (Production and Safety) Bill 2004
42 Provisions of authority to prospect 1
(1) Each authority to prospect must state its term and area.53 2
(2) The term-- 3
(a) must be for at least the required program period for the initial 4
work program for the authority under the call for tenders; but 5
(b) must end no later than 12 years after the authority takes effect. 6
(3) The first relinquishment day must not be later than 4 years after the 7
day the authority is to take effect. 8
(4) The second and any later relinquishment days must not be later than 9
4 years after the previous relinquishment day. 10
(5) The authority may also state-- 11
(a) conditions or other provisions of the authority, other than 12
conditions or provisions that are-- 13
(i) inconsistent with the mandatory conditions for authorities to 14
prospect; or 15
(ii) the same as, or substantially the same as, or inconsistent 16
with, any relevant environmental condition for the 17
authority;54 and 18
(b) the day it takes effect; and 19
(c) relinquishment days for the authority.55 20
(6) However, the provisions of the authority may exclude or restrict the 21
carrying out of an authorised activity for the authority. 22
(7) The day of effect must not be before the day the authority is granted. 23
(8) If no day of effect is stated, the authority takes effect on the day it is 24
granted. 25
(9) If relinquishment days are not stated, its relinquishment days are 26
taken to be-- 27
(a) the day that is the fourth anniversary of the authority's day of 28
effect; and 29
53 See however section 98 (Area of authority to prospect).
54 See also section 99 (Minister's power to decide excluded land).
55 See section 65 (Relinquishment condition).
s 43 79 s 44
Petroleum and Gas (Production and Safety) Bill 2004
(b) each day during its term that is a 4 yearly interval after the day of 1
effect. 2
43 Criteria for decisions 3
(1) The matters that must be considered in deciding whether to grant an 4
authority to prospect or deciding its provisions include-- 5
(a) any special criteria; and 6
(b) the extent to which the Minister is of the opinion that the tenderer 7
is capable of carrying out authorised activities for the authority, 8
having regard to the tenderer's-- 9
(i) financial and technical resources; and 10
(ii) ability to manage petroleum exploration and production; 11
and 12
(c) the applicant's proposed initial work program.56 13
(2) The matters mentioned in subsection (1)(b) are the "capability 14
criteria". 15
(3) A person "satisfies" the capability criteria if the Minister forms the 16
opinion mentioned in subsection (1)(b). 17
44 Notice to unsuccessful tenderers 18
After a call for tenders has been decided, each tenderer not granted the 19
authority to prospect must be given notice of the decision.57 20
56 See also division 3, subdivision 3 (Criteria for deciding whether to approve
proposed initial work programs).
57 See also the Judicial Review Act 1991, section 32 (Request for statement of
reasons).
s 45 80 s 48
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Work programs 1
Subdivision 1--Function and purpose of work program 2
45 Function and purpose 3
(1) The work program for an authority to prospect gives detailed 4
information about the nature and extent of activities to be carried out under 5
the authority. 6
(2) The purposes of giving the information are to-- 7
(a) allow resource management decisions to be made; and 8
(b) ensure appropriate development of the authority. 9
Subdivision 2--Requirements for proposed initial work programs 10
46 Operation of sdiv 2 11
This subdivision provides for requirements (the "initial work program 12
requirements") for a proposed work program for a proposed authority to 13
prospect. 14
47 Program period 15
(1) The proposed program must state its period. 16
(2) The period must be the same as the required period under the relevant 17
call for tenders.58 18
48 General requirements 19
(1) The proposed program must provide for each of the following-- 20
(a) an overview of the activities proposed to be carried out under the 21
authority or proposed authority during all of its term; 22
(b) for each year of the program period-- 23
58 See section 35 (Call for tenders).
s 48 81 s 48
Petroleum and Gas (Production and Safety) Bill 2004
(i) the extent and nature of petroleum exploration and testing 1
for petroleum production proposed to be carried out during 2
the year; and 3
(ii) generally where the activities are proposed to be carried out; 4
and 5
(iii) the estimated cost of the activities; 6
(c) maps that show where the activities are proposed to be carried 7
out; 8
(d) any other information relevant to the matters mentioned in 9
section 49;59 10
(e) reasons why the program is considered appropriate; 11
(f) another matter prescribed under a regulation. 12
(2) A regulation may impose requirements about the form in which the 13
matters mentioned in subsection (1) must be given. 14
(3) In this section-- 15
"year", of the program period, means-- 16
(a) the period starting on the day the program period starts and 17
ending on the first anniversary of that day; and 18
(b) each subsequent period of 12 months or less during the program 19
period, starting on each anniversary of that day and ending on-- 20
(i) the next anniversary of that day; or 21
(ii) if the program period ends before the next anniversary--the 22
day the program period ends. 23
Subdivision 3--Criteria for deciding whether to approve proposed initial 24
work programs 25
26
Note--
27
For the requirement for approval of an initial work program, see section 41.60
59 Section 49 (Criteria)
60 Section 41 (Deciding whether to grant authority to prospect)
s 49 82 s 51
Petroleum and Gas (Production and Safety) Bill 2004
49 Criteria 1
(1) The matters that must be considered in deciding whether to approve a 2
proposed initial work program include the appropriateness of the tenderer's 3
proposed work program, having regard to each of the following-- 4
(a) the potential of the proposed area of the authority to prospect for 5
petroleum discovery; 6
(b) the extent and nature of the proposed petroleum exploration; 7
8
Examples--
9
· proposed geological, geophysical or geochemical surveying
10
· the number of petroleum wells the tenderer proposes to drill, and their
11
type
(c) when and where the tenderer proposes to carry out the 12
exploration. 13
(2) The matters mentioned in subsection (1) are the "work program 14
criteria". 15
Subdivision 4--Requirements for proposed later work programs 16
50 Operation of sdiv 4 17
This subdivision provides for requirements (the "later work program 18
requirements") for a proposed work program for an authority to 19
prospect.61 20
51 General requirements 21
The proposed program must-- 22
(a) other than in relation to the program period, comply with the 23
initial work program requirements; and 24
(b) state the extent to which the current work program for the 25
authority to prospect has been complied with; and 26
(c) if there have been any amendments to the authority or the current 27
work program, state-- 28
61 For the obligation to lodge a proposed later work program, see section 79
(Obligation to lodge proposed later work program).
s 52 83 s 54
Petroleum and Gas (Production and Safety) Bill 2004
(i) whether the changes have been incorporated in the proposed 1
program; and 2
(ii) any effect the changes have on the proposed program; and 3
(d) state the effect of any petroleum discovery on the proposed 4
program. 5
52 Program period 6
(1) The proposed program must state its period. 7
(2) The period must not be longer than-- 8
(a) if the term of the rest, or the renewed term, of the authority is less 9
than 4 years--the rest of its term; or 10
(b) if the term of the rest, or the renewed term, of the authority is 11
4 years or more, the following-- 12
(i) generally--4 years from the start of the period; 13
(ii) if the Minister approves a longer period--the longer period. 14
(3) However, the Minister can not approve a period longer than the rest 15
of the term of the authority. 16
53 Implementation of evaluation program for potential commercial 17
area 18
If, under section 91,62 an evaluation program is taken to be an additional 19
part of the existing work program for the authority to prospect, the 20
proposed program must include work necessary to implement the 21
evaluation program for the period of that program. 22
54 Later work programs for proposed new authorities 23
Proposed later work programs for an application under division 8, 24
subdivision 2,63 to divide an authority to prospect must have a combined 25
effect that is at least the effect of the work program for the original 26
authority. 27
62 Section 91 (Inclusion of evaluation program in work program).
63 Division 8, subdivision 2 (Dividing authorities to prospect)
s 55 84 s 57
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 5--Approval of proposed later work programs 1
55 Application of sdiv 5 2
This subdivision applies if, under this Act, a proposed later work 3
program is lodged for approval.64 4
56 Authority taken to have work program until decision on whether 5
to approve proposed work program 6
(1) This section applies until-- 7
(a) if the proposed program is approved--the holder is given notice 8
of the approval; or 9
(b) if approval of the proposed program is refused--when the refusal 10
takes effect.65 11
(2) Despite the ending of the program period for the current work 12
program for the authority to prospect-- 13
(a) the authority is taken to have a work program; and 14
(b) the holder may carry out any authorised activity for the authority. 15
57 Deciding whether to approve proposed program 16
(1) The Minister may approve or refuse to approve the proposed 17
program. 18
(2) The matters that must be considered in deciding whether to approve 19
the proposed program include each of the following-- 20
(a) the work program criteria and capability criteria and any special 21
criteria that applied for deciding the application for the authority 22
to prospect;66 23
64 For requirements to lodge a proposed later work program, see sections 79
(Obligation to lodge proposed later work program), 100 (Minister may add excluded
land) and 790 (Types of noncompliance action that may be taken), division 5
(Renewals) and division 8, subdivision 2 (Dividing authorities to prospect).
65 For when the decision takes effect, see section 58 (Steps after, and taking effect of,
decision).
66 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
s 58 85 s 59
Petroleum and Gas (Production and Safety) Bill 2004
(b) the extent to which the current work program has been complied 1
with; 2
(c) any amendments made to the authority or its current work 3
program, and the reasons for the changes; 4
(d) any notice under section 544,67 commercial viability report or 5
independent viability assessment for the authority. 6
(3) Also, if the authority was granted in response to a tender, any other 7
work program proposed by other tenderers for the authority must be taken 8
into account. 9
(4) However, subsection (3) applies only to the extent the other program 10
includes the period of the proposed plan. 11
58 Steps after, and taking effect of, decision 12
(1) On approval of the proposed later work program, the holder must be 13
given notice of the approval. 14
(2) On refusal to approve the later work program, the holder must be 15
given an information notice about the decision to refuse. 16
(3) An approval takes effect when the holder is given the notice or, if the 17
notice states a later day of effect, on that later day. 18
(4) A refusal does not take effect until the end of the appeal period for 19
the refusal.68 20
Subdivision 6--Amending work programs 21
59 Restrictions on amending work program 22
(1) An authority to prospect holder can not amend the period of the work 23
program for the authority. 24
67 Section 544 (Notice by petroleum tenure holder about discovery and commercial
viability)
68 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
s 60 86 s 62
Petroleum and Gas (Production and Safety) Bill 2004
(2) An authority to prospect holder may amend the work program in 1
another way only if the amendment has been approved under this 2
division.69 3
60 Applying for approval to amend 4
(1) An authority to prospect holder may apply for approval to amend the 5
work program for the authority. 6
(2) However, the application can not be made less than 20 business days 7
before the end of the period stated in the plan for carrying out work under 8
the existing work program. 9
61 Requirements for making application 10
The application must be-- 11
(a) lodged at-- 12
(i) the office of the department for lodging work program 13
amendment applications, as stated in a gazette notice by the 14
chief executive; or 15
(ii) if no office is gazetted--the office of the chief executive; 16
and 17
(b) accompanied by the fee prescribed under a regulation. 18
62 Deciding application 19
(1) If the proposed amendment-- 20
(a) does not relate to the initial work program for the authority to 21
prospect; and 22
(b) is to substitute the carrying out of an authorised activity 23
(the "original activity") with another authorised activity; 24
the Minister may approve the amendment if satisfied the other activity is at 25
least of an equivalent value to the original activity. 26
(2) Otherwise, the Minister may approve the amendment only if satisfied 27
it is necessary because of a circumstance-- 28
69 See also section 91 (Inclusion of evaluation program in work program).
s 63 87 s 63
Petroleum and Gas (Production and Safety) Bill 2004
(a) not related to-- 1
(i) the applicant's financial or technical resources or ability to 2
manage petroleum exploration; or 3
(ii) the results of exploration; and 4
(b) the happening of which is or was beyond the applicant's control; 5
and 6
(c) that could not have been prevented by a reasonable person in the 7
applicant's position. 8
(3) Also, if the amendment is approved under subsection (2), any 9
relinquishment day for the authority may be deferred for a period that 10
relates to a circumstance mentioned in subsection (2). 11
(4) A deferral under subsection (3)-- 12
(a) can not be for longer than 12 years after the authority took effect; 13
and 14
(b) does not defer any later relinquishment day for the authority. 15
(5) If, under this section, an amendment is approved, a condition 16
(an "additional relinquishment condition") may be imposed on the 17
authority requiring its holder to relinquish, by a notice lodged at the 18
following office, a stated percentage of the area of the authority on or 19
before a stated day-- 20
(a) the office of the department for lodging relinquishment notices, 21
as stated in a gazette notice by the chief executive; 22
(b) if no office is gazetted under paragraph (a)--the office of the 23
chief executive. 24
63 Steps after, and taking effect of, decision 25
(1) On approval of the proposed amendment, the holder must be given 26
notice of the approval. 27
(2) On refusal to approve the proposed amendment, the holder must be 28
given an information notice about the decision to refuse. 29
(3) An approval takes effect when the holder is given the notice or, if the 30
notice states a later day of effect, on that later day. 31
s 64 88 s 65
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Key mandatory conditions for authorities to prospect 1
Subdivision 1--Preliminary 2
64 Operation of div 4 3
This division provides for particular mandatory conditions for 4
authorities to prospect. 5
6
Note--
7
1. The following provisions also impose mandatory conditions on authorities to
8
prospect--
9
· division 1
10
· parts 4, 8 and 10
11
· sections 181 and 202
12
· chapter 3, part 4, division 4
13
· chapter 5.70
14
2. For what is a `mandatory condition', see section 20(2).71
Subdivision 2--Relinquishment condition and related provisions 15
65 Relinquishment condition 16
(1) It is a condition (the "relinquishment condition") of each authority 17
to prospect that its holder must relinquish part of its area, as provided for 18
under this subdivision-- 19
(a) on or before each of its relinquishment days; and 20
70 Division 1 (Key authorised activities)
Parts 4 (Water rights for petroleum tenures), 8 (Petroleum activities coordination)
and 10 (General provisions for petroleum wells, water supply bores and water
observation bores)
Sections 181 and 202 (Additional condition of relevant petroleum tenure)
Chapter 3 (Provisions for coal seam gas), part 4 (Additional provisions for
authorities to prospect and data acquisition authorities), division 4 (Conditions)
Chapter 5 (Common petroleum authority provisions)
71 Section 20 (What are the "conditions" of a petroleum authority)
s 66 89 s 66
Petroleum and Gas (Production and Safety) Bill 2004
(b) if section 68(3)72 applies--on the day provided for under that 1
subsection. 2
(2) However, if, under section 62(3),73 a relinquishment day for the 3
authority (the "original day") is deferred for a stated period, for the 4
relinquishment condition-- 5
(a) the relinquishment that was required on or before the original 6
day is taken to have been deferred until the end of the stated 7
period; but 8
(b) the relinquishments required under the relinquishment condition 9
on any later relinquishment days for the authority must be made 10
as if the deferral has not been granted. 11
(3) A relinquishment required under the relinquishment condition-- 12
(a) must be made by notice (the "relinquishment notice") lodged 13
at-- 14
(i) the office of the department for lodging relinquishment 15
notices, as stated in a gazette notice by the chief executive; 16
or 17
(ii) if no office is gazetted under subparagraph (i)--the office of 18
the chief executive; and 19
(b) takes effect on the day after lodgment under paragraph (a). 20
(4) This section does not prevent the holder from relinquishing, by 21
relinquishment notice, more than the part provided for under this 22
subdivision. 23
66 Part usually required to be relinquished 24
(1) This section is subject to sections 68 and 69.74 25
(2) The relinquishment for each relinquishment day must be such that by 26
that day at least 8.33% of the original notional sub-blocks of the authority 27
to prospect have been relinquished for each year that has passed since the 28
authority originally took effect. 29
72 Section 68 (Adjustments for sub-blocks that can not be counted)
73 Section 62 (Deciding application)
74 Sections 68 (Adjustments for sub-blocks that can not be counted) and 69
(Adjustment for particular potential commercial areas)
s 67 90 s 68
Petroleum and Gas (Production and Safety) Bill 2004
(3) The sub-blocks required to be relinquished under this section is 1
the "usual relinquishment". 2
67 Sub-blocks that can not be counted towards relinquishment 3
(1) The following can not be counted as sub-blocks relinquished for the 4
relinquishment condition-- 5
(a) sub-blocks relinquished under an additional relinquishment 6
condition;75 7
(b) sub-blocks in an area that, under section 101,76 has ceased to be 8
included in the area of an authority to prospect; 9
(c) the mere declaration of the sub-blocks as a potential commercial 10
area for the authority; 11
(d) sub-blocks the subject of an application for a petroleum lease or 12
potential commercial area; 13
(e) sub-blocks relinquished under a penalty relinquishment. 14
(2) To remove any doubt, it is declared that a potential commercial area 15
can be relinquished and can be counted as an area relinquished for the 16
relinquishment condition. 17
(3) In this section-- 18
"penalty relinquishment" means a relinquishment-- 19
(a) under a relinquishment requirement under section 790(4) made 20
because of a failure to comply with the relinquishment condition; 21
and 22
(b) to the extent of more than the sub-blocks required to be 23
relinquished under the relinquishment condition. 24
68 Adjustments for sub-blocks that can not be counted 25
(1) This section applies for a relinquishment day if, after taking away all 26
sub-blocks that, under section 67, can not be counted for the 27
relinquishment condition, the balance of the original notional sub-blocks of 28
75 See section 62(5) (Deciding application).
76 Section 101 (Area of authority to prospect reduced on grant of petroleum lease)
s 69 91 s 71
Petroleum and Gas (Production and Safety) Bill 2004
the authority to prospect are less than the sub-blocks required to be 1
relinquished under the usual relinquishment. 2
(2) The relinquishment condition is taken to have been complied with if 3
the authority holder gives a relinquishment notice for all of the balance. 4
(3) However, if-- 5
(a) a sub-block not counted for the relinquishment condition was the 6
subject of an application for a petroleum lease or potential 7
commercial area; and 8
(b) the result of the application is that it is refused; 9
the authority holder must, within 20 business days after the appeal period 10
for the decision to refuse, give a relinquishment notice for that sub-block. 11
69 Adjustment for particular potential commercial areas 12
If the only way to comply with the relinquishment condition is to 13
relinquish all or part of a potential commercial area for the authority, the 14
relinquishment condition is taken to be complied with if all other land in 15
the area of the authority is relinquished. 16
70 Relinquishment must be by blocks 17
(1) A relinquishment under the relinquishment condition can only be by 18
blocks. 19
(2) However, if a block contains an area that, under section 67, can not 20
be counted as a relinquishment, subsection (1) is complied with if all of the 21
rest of the land within the block within the area of the authority to prospect 22
is relinquished. 23
71 Ending of authority to prospect if all of it area relinquished 24
If all of the area of an authority to prospect is relinquished, the authority 25
ends. 26
s 72 92 s 73
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Other mandatory conditions 1
72 Restriction on flaring or venting 2
(1) An authority to prospect holder must not flare or vent petroleum in a 3
gaseous state produced under the authority unless the flaring or venting is 4
authorised under this section. 5
(2) Flaring the gas is authorised if it is not commercially or technically 6
feasible to use it-- 7
(a) commercially under the authority; or 8
(b) for an authorised activity for the authority. 9
(3) Venting the gas is authorised if-- 10
(a) it is not safe to use the gas for a purpose mentioned in 11
subsection (2)(a) or (b) or to flare it; or 12
(b) flaring it is not technically practicable. 13
73 Permitted period for production or storage testing 14
(1) Subject to section 72, an authority to prospect holder may carry 15
out-- 16
(a) testing ("production testing") for petroleum production from 17
each petroleum well in the area of the authority; and 18
(b) testing each natural underground reservoir in the area for 19
petroleum storage. 20
(2) However, it is a condition of the authority to prospect that production 21
testing may be carried out for more than 30 days from when the testing on 22
the petroleum well first starts only with the Minister's approval. 23
(3) The approval may be given on the conditions the Minister considers 24
appropriate. 25
(4) A condition may require the holder to pay petroleum royalty for 26
petroleum produced from production testing for all or part of the period 27
that starts at the end of the 30 days and ends when the approval ends. 28
s 74 93 s 76
Petroleum and Gas (Production and Safety) Bill 2004
74 Obligation to consult with particular owners and occupiers 1
(1) An authority to prospect holder must consult, or use reasonable 2
endeavours to consult, with each owner and occupier of private or public 3
land on which authorised activities for the authority are, or are likely to be, 4
carried out. 5
(2) The consultation must be about the carrying out of authorised 6
activities for the authority (including, for example, crossing access land for 7
the authority) to the extent they relate to the owners and occupiers. 8
(3) The consultation must be carried out in the way and at the times-- 9
(a) provided for in the authority; or 10
(b) if the authority does not provide for how the consultation must be 11
carried out--approved by the Minister. 12
(4) This section does not limit chapter 5, part 2 or 3.77 13
(5) A failure to comply with this section does not prevent authorised 14
activities for the authority from being carried out. 15
75 Petroleum royalty and annual rent 16
(1) An authority to prospect holder must pay the State-- 17
(a) petroleum royalty as required under chapter 6;78 and 18
(b) the annual rent, as prescribed under a regulation. 79
19
(2) The annual rent must be paid in the way, and on or before the day, 20
prescribed under a regulation. 21
76 Civil penalty for nonpayment of annual rent 22
(1) If an authority to prospect holder does not pay the annual rent as 23
required under section 75, the holder must also pay the State a civil penalty. 24
(2) The amount of the penalty is 15% of the rent. 25
(3) The penalty-- 26
77 Chapter 5, part 2 (Private land) or 3 (Public land)
78 Chapter 6 (Petroleum royalty)
79 See also section 588 (Interest on amounts owing to the State other than for
petroleum royalty).
s 77 94 s 79
Petroleum and Gas (Production and Safety) Bill 2004
(a) must be paid on the day after the last day for payment of the rent; 1
and 2
(b) is still payable even if the holder later pays the rent. 3
77 Requirement to have work program 4
The holder of an authority to prospect must have a work program for the 5
authority. 6
7
Note--
8
The only `work program' for an authority to prospect is its current initial or later work
9
program, as approved under division 3. See the definition of that term in section 23. For
10
the requirement to lodge a proposed later work program and its approval, see section 79
11
and division 3, subdivision 5.80
78 Compliance with exploration activities in work program 12
An authority to prospect holder must carry out the exploration activities 13
proposed in the work program.81 14
79 Obligation to lodge proposed later work program 15
(1) This section imposes an obligation on an authority to prospect holder 16
to lodge a proposed later work program for the authority. 17
18
Note--
19
1. For approval of the proposed program, see division 3, subdivision 5.82
20
2. If the holder wishes to renew the authority, a proposed later work program must be
21
included in the renewal application. See section 81(1).83
(2) The obligation is complied with only if the proposed later work 22
program-- 23
80 Division 3 (Work programs), subdivision 5 (Approval of proposed later work
programs)
Section 79 (Obligation to lodge proposed later work program)
81 For the minimum work commitment, see section 48(1)(b)(i) (General requirements).
See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
82 Division 3, subdivision 5 (Approval of proposed later work programs)
83 Section 81 (Conditions for renewal application)
s 79 95 s 79
Petroleum and Gas (Production and Safety) Bill 2004
(a) is lodged at-- 1
(i) the office of the department for lodging proposed later work 2
programs, as stated in a gazette notice by the chief 3
executive; 4
(ii) if no office is gazetted under subparagraph (i)--the office of 5
the chief executive; and 6
(b) complies with the later work program requirements;84 and 7
(c) is accompanied by the relevant fee. 8
(3) A proposed later work program must be lodged at least 20, but no 9
more than 60, business days before the end of the program period for the 10
current work program for the authority (the "current work program 11
period"). 12
(4) However, if before the end of the current plan period, a decision is 13
made not to approve a proposed later work program lodged under 14
subsection (3), the holder may, within the period, lodge another proposed 15
later work program. 16
(5) If the holder does not lodge any proposed later work program before 17
the end of the current plan period-- 18
(a) the holder must be given a notice requiring the holder to lodge a 19
proposed later work program for the authority within 20 business 20
days after the giving of the notice; and 21
(b) the holder must comply with the requirement. 22
(6) In this section-- 23
"relevant fee", for the lodgment of the proposed program, means-- 24
(a) if the proposed program is lodged within the time required under 25
subsection (3)--the fee prescribed under a regulation; or 26
(b) if the proposed program is lodged after the time required under 27
subsection (3)-- 28
(i) if it is lodged under subsection (4)--nil; or 29
(ii) if it is not lodged under subsection (4) and it is lodged 30
before the end of the current work program period--an 31
amount that is 10 times the prescribed fee; or 32
84 See division 3, subdivision 4 (Requirements for proposed later work programs).
s 80 96 s 81
Petroleum and Gas (Production and Safety) Bill 2004
(iii) if it is not lodged under subsection (4) and it is lodged after 1
the end of the current work program period--an amount 2
that is 20 times the prescribed fee. 3
80 Consequence of failure to comply with notice to lodge proposed 4
later work program 5
(1) If an authority to prospect holder does not comply with a requirement 6
under section 79(5)(a), the authority is cancelled. 7
(2) However, the cancellation does not take effect until the holder is 8
given a notice stating that the authority has been cancelled because of the 9
operation of subsection (1). 10
Division 5--Renewals 11
81 Conditions for renewal application 12
(1) An authority to prospect holder may apply to renew the authority 13
only if none of the following is outstanding-- 14
(a) annual rent for the authority; 15
(b) a civil penalty under section 76 for nonpayment of annual rent; 16
(c) interest payable under section 58885 on annual rent or a civil 17
penalty; 18
(d) petroleum royalty for petroleum produced under the authority 19
and any unpaid petroleum royalty interest on it; 20
(e) security required for the authority, as required under 21
section 488.86 22
(2) Also, the application can not be made-- 23
(a) more than 60 business days before the end of the term of the 24
authority; or 25
(b) after the authority has ended. 26
85 Section 588 (Interest on amounts owing to the State other than for petroleum
royalty)
86 Section 488 (Power to require security for petroleum authority)
s 82 97 s 82
Petroleum and Gas (Production and Safety) Bill 2004
82 Requirements for making application 1
(1) The application must-- 2
(a) be in the approved form; and 3
(b) be lodged at-- 4
(i) the office of the department for lodging authority to 5
prospect renewal applications, as stated in a gazette notice 6
by the chief executive; or 7
(ii) if no office is gazetted under subparagraph (i)--the office 8
stated in the approved form; or 9
(iii) otherwise--the office of the chief executive; and 10
(c) state whether or not the work program for the authority to 11
prospect has been complied with; and 12
(d) if the work program has not been complied with--state details 13
of, and the reasons for, each noncompliance; and 14
(e) include a proposed later work program for the renewed authority; 15
and 16
(f) include a statement about how and when the applicant proposes 17
to consult with, and keep informed, each owner and occupier of 18
private or public land on which authorised activities for the 19
renewed authority are, or are likely to be, carried out;87 and 20
(g) address the capability criteria; and 21
(h) include information about the matters that, under sections 84 22
and 86,88 must or may be considered in deciding the application; 23
and 24
(i) state whether or not the applicant has complied with chapter 5, 25
part 7,89 for reports required to be lodged in relation to the 26
authority; and 27
(j) be accompanied by-- 28
(i) the application fee prescribed under a regulation; and 29
87 See section 74 (Obligation to consult with particular owners and occupiers).
88 Sections 84 (Deciding application) and 86 (Criteria for decisions)
89 Chapter 5, part 7 (Reporting)
s 83 98 s 83
Petroleum and Gas (Production and Safety) Bill 2004
(ii) if the application is made less than 20 business days before 1
end of the term of the authority--the late fee prescribed 2
under a regulation. 3
(2) The proposed work program must comply with the later work 4
program requirements.90 5
83 Continuing effect of authority for renewal application 6
(1) This section applies if before the application is decided the term of 7
the authority to prospect ends. 8
(2) Despite the ending of the term, the authority continues in force until 9
the earlier of the following to happen-- 10
(a) the start of any renewed term of the authority; 11
(b) a refusal of the application takes effect;91 12
(c) the application is withdrawn; 13
(d) the authority is cancelled under this Act.92 14
(3) Also, if the applicant has applied for a declaration of a potential 15
commercial area for the authority, the authority continues in force until the 16
declaration application is decided, but only in relation to the area of the 17
proposed potential commercial area applied for. 18
(4) If the authority is continued in force under subsection (3), the 19
evaluation program included in the declaration application is taken to be 20
the work program for the authority. 21
(5) If the authority is renewed, subsections (2) and (3) are taken never to 22
have applied for the period from the end of the term of the authority being 23
renewed, as stated in that authority.93 24
90 See division 3, subdivision 4 (Requirements for proposed later work programs).
For approval of the proposed program, see division 3, subdivision 5 (Approval of
proposed later work programs).
91 See section 88 (When refusal takes effect).
92 See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
93 See section 85(5) (Provisions and term of renewed authority).
s 84 99 s 84
Petroleum and Gas (Production and Safety) Bill 2004
84 Deciding application 1
(1) The Minister may grant or refuse the renewal. 2
(2) However-- 3
(a) before deciding to grant the renewal, the Minister must decide 4
whether to approve the applicant's proposed later work program 5
for the renewed authority to prospect;94 and 6
(b) the renewal can not be granted unless-- 7
(i) the proposed program has been approved; and 8
(ii) the applicant satisfies the capability criteria; and 9
(iii) the Minister is satisfied the applicant-- 10
(A) continues to satisfy any special criteria that applied for 11
deciding the application for the authority to prospect 12
being renewed;95 and 13
(B) has substantially complied with the authority to 14
prospect being renewed; and 15
(iv) a relevant environmental authority for the renewed authority 16
to prospect has been issued. 17
(3) Also, if the applicant has been given a notice under section 9696 to 18
apply for a petroleum lease, the application must not be decided until the 19
issue of whether a petroleum lease will be granted is decided. 20
(4) Subsection (3) does not limit the power under section 97 to take a 21
proposed action as stated in the notice. 22
(5) The Minister may, as a condition of deciding to grant the application, 23
require the applicant to do all or any of the following within a stated 24
reasonable period-- 25
(a) pay the annual rent for the first year of the renewed authority; 26
(b) give security for the renewed authority, as required under 27
section 488.97 28
94 See division 3, subdivision 5 (Approval of proposed later work programs).
95 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
96 Section 96 (Ministerial direction to apply for petroleum lease)
97 Section 488 (Power to require security for petroleum authority)
s 85 100 s 85
Petroleum and Gas (Production and Safety) Bill 2004
(6) If the applicant does not comply with the requirement, the 1
application may be refused. 2
85 Provisions and term of renewed authority 3
(1) Subject to this section, section 4298 applies to the renewed authority 4
to prospect as if it were an authority to prospect granted under division 2.99 5
(2) The first relinquishment day must not be later than 4 years after the 6
day the renewed authority is to take effect. 7
(3) To remove any doubt, it is declared that the conditions of the renewed 8
authority may be different from the conditions or other provisions of the 9
authority to prospect being renewed. 10
(4) The area of the renewed authority must not be more than the area of 11
the authority to prospect being renewed immediately before the renewed 12
authority is to take effect. 13
(5) If the renewed authority is decided before the end of the term of the 14
authority to prospect being renewed as stated in that authority 15
(the "previous term"), the term of the renewed authority is taken to start 16
from the end of the previous term. 17
(6) If the renewed authority is decided after the previous term, the term 18
of the renewed authority starts immediately after the end of the previous 19
term, but-- 20
(a) the conditions of the renewed authority do not start until the 21
authority holder is given notice of them; and 22
(b) until the notice is given, the conditions of the authority to 23
prospect being renewed apply to the renewed authority as if they 24
were its conditions. 25
(7) The term of the renewed authority must not end more than 12 years 26
from when the authority to prospect originally took effect. 27
(8) However, if any part of the area of the renewed authority is a 28
potential commercial area, the term of the renewed authority for that part 29
may be for a longer period that-- 30
98 Section 42 (Provisions of authority to prospect)
99 Division 2 (Obtaining authority to prospect)
s 86 101 s 89
Petroleum and Gas (Production and Safety) Bill 2004
(a) ends no later that when the declaration ends;100 and 1
(b) is no more than the last term of the authority being renewed. 2
(9) To remove any doubt, it is declared that subsection (8)(b) does not 3
prevent a renewal of the renewed authority. 4
86 Criteria for decisions 5
The matters that must be considered in deciding whether to grant the 6
renewal or deciding the provisions of the renewed authority include-- 7
(a) the work program criteria;101 and 8
(b) whether the applicant continues to satisfy the capability criteria 9
and any special criteria. 10
87 Information notice about refusal 11
On refusal of the application, the applicant must be given an information 12
notice about the decision to refuse. 13
88 When refusal takes effect 14
A refusal of the application does not take effect until end of the appeal 15
period for the decision to refuse.102 16
Division 6--Potential commercial areas 17
89 Applying for potential commercial area 18
(1) The holder of an authority to prospect may apply for a declaration by 19
the Minister that all or a stated part of the area of the authority is a potential 20
commercial area for the authority. 21
(2) The application must be-- 22
(a) in the approved form; and 23
100 See section 92 (Term of declaration).
101 See section 49 (Criteria).
102 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
s 89 102 s 89
Petroleum and Gas (Production and Safety) Bill 2004
(b) lodged at-- 1
(i) the office of the department for lodging applications for 2
potential commercial area declarations, as stated in a gazette 3
notice by the chief executive; or 4
(ii) if no office is gazetted under subparagraph (i)--the office 5
stated in the approved form; or 6
(iii) otherwise--the office of the chief executive. 7
(3) The application may be made-- 8
(a) for more than 1 part of the area of the authority to prospect; and 9
(b) even if another part of the area of the authority is already a 10
potential commercial area. 11
(4) The application must include-- 12
(a) a report for, or that includes, the proposed potential commercial 13
area that-- 14
(i) meets the requirements under section 231103 for a 15
commercial viability report; and 16
(ii) is still relevant to the circumstances of the proposed 17
potential commercial area;104 and 18
(b) an evaluation program for-- 19
(i) potential petroleum production or storage in the proposed 20
potential commercial area; and 21
(ii) market opportunities for potential production or storage; 22
and 23
(c) information about the compliance or noncompliance with the 24
conditions of the authority. 25
(5) However, subsection (4)(a) does not apply if-- 26
(a) a commercial viability report or an independent viability 27
assessment relates to, or includes the proposed potential 28
commercial area; and 29
(b) the report or assessment is still relevant to the circumstances of 30
the proposed potential commercial area. 31
103 Section 231 (Required content of commercial viability report)
104 See part 7 (Commercial viability assessment).
s 90 103 s 91
Petroleum and Gas (Production and Safety) Bill 2004
90 Deciding potential commercial area application 1
(1) The Minister may declare a part the subject of the application to be a 2
potential commercial area only if satisfied-- 3
(a) the area is no more than is needed to cover the maximum extent 4
of a natural underground reservoir identified in the report; and 5
(b) petroleum production or storage in the area to be declared, is not, 6
and will not soon be, commercially viable, but is likely to 7
become viable within 15 years.105 8
(2) Also, the area declared-- 9
(a) must not be for more than 75 sub-blocks; and 10
(b) must form a single parcel of land. 11
(3) In deciding the application, regard must be had to whether the 12
conditions of the relevant authority to prospect have been substantially 13
complied with. 14
(4) On refusal of the application, the applicant must be given an 15
information notice about the decision to refuse. 16
(5) To remove any doubt, it is declared that the declaration may be made 17
even if the authority to prospect has been continued in force under 18
section 83 or 119.106 19
91 Inclusion of evaluation program in work program 20
(1) If the declaration is made, the evaluation program that accompanied 21
the application is taken to be an additional part of the existing work 22
program for the authority to prospect.107 23
(2) If there is an inconsistency between the evaluation program and the 24
rest of the work program, the evaluation program prevails to the extent of 25
the inconsistency. 26
105 See section 85(6)(b) (Provisions and term of renewed authority).
106 Section 83 (Continuing effect of authority for renewal application) or 119
(Continuing effect of authority to prospect for ATP-related application)
107 For requirements about the evaluation program in later work programs, see
section 53 (Implementation of evaluation program for potential commercial area).
s 92 104 s 93
Petroleum and Gas (Production and Safety) Bill 2004
92 Term of declaration 1
(1) Subject to section 93, a declaration of a potential commercial area 2
continues in force for-- 3
(a) 15 years from the making of the declaration; or 4
(b) if the declaration states a shorter period during which it is to be in 5
force--the shorter period. 6
(2) The matters that must be considered in deciding the shorter period 7
include-- 8
(a) when any petroleum discovery was made, whether or not a notice 9
under section 544(1)108 was lodged for the discovery; and 10
(b) any commercial viability report or independent viability 11
assessment for, or that includes, the proposed potential 12
commercial area. 13
(3) However, the declaration ceases if the authority to prospect holder 14
lodges a notice that the holder no longer wishes the area to be a potential 15
commercial area at-- 16
(a) the office of the department for lodging the notice, as stated in a 17
gazette notice by the chief executive; or 18
(b) if no office is gazetted under paragraph (a)--the office of the 19
chief executive.109 20
93 Extension of term of declaration 21
(1) If-- 22
(a) a declaration of a potential commercial area is in force for the 23
area of an authority to prospect; and 24
108 Section 544 (Notice by petroleum tenure holder about discovery and commercial
viability)
109 See also section 102 (Effect of ending of declaration of potential commercial area).
s 94 105 s 94
Petroleum and Gas (Production and Safety) Bill 2004
(b) under the Mineral Resources Act, part 7AA, division 2 or 3,110 a 1
coal mining lease or oil shale mining lease has been granted over 2
the area; 3
the Minister may, on the application of the authority to prospect holder, 4
extend the term of the declaration for a period that ends no later than 5
2 years after the mining lease ends. 6
(2) The application must be-- 7
(a) lodged at-- 8
(i) the office of the department for lodging applications under 9
this section, as stated in a gazette notice by the chief 10
executive; or 11
(ii) if no office is gazetted under subparagraph (i)--the office of 12
the chief executive; and 13
(b) accompanied by the fee prescribed under a regulation. 14
(3) On refusal of the application, the applicant must be given an 15
information notice about the decision to refuse. 16
94 Potential commercial area still part of authority 17
A declaration of a potential commercial area does not change the land 18
the subject of the declaration from being-- 19
(a) part of the area of the authority to prospect the subject of the 20
application for the declaration; and 21
(b) subject to the authority. 22
110 Mineral Resources Act, part 7AA division 2 (Obtaining coal mining lease or oil
shale mining lease over land in area of authority to prospect (other than by or jointly
with, or with the consent of, authority to prospect holder)) or 3 (Obtaining coal
mining lease or oil shale mining lease over land in area of authority to prospect (by
or jointly with, or with the consent of, authority to prospect holder))
s 95 106 s 96
Petroleum and Gas (Production and Safety) Bill 2004
Division 7--Provisions to facilitate transition to petroleum lease 1
95 Application of div 7 2
This division applies if the Minister reasonably considers the holder of 3
an authority to prospect should apply for a petroleum lease for all or part of 4
the area of the authority because-- 5
(a) petroleum production in the area-- 6
(i) is currently commercially viable; or 7
(ii) is likely to become commercially viable within 2 years; or 8
(b) a natural underground reservoir in the area is, or is likely to have, 9
commercial storage potential. 10
96 Ministerial direction to apply for petroleum lease 11
(1) The Minister may give the authority holder a notice stating each of 12
the following-- 13
(a) that the Minister proposes to do either of the following, 14
(the "proposed action") unless the holder has made an 15
appropriate lease application-- 16
(i) excise a stated area from the area of the authority; 17
(ii) cancel the authority; 18
(b) the grounds for the proposed action; 19
(c) the facts and circumstances forming the basis for the grounds; 20
(d) that the holder may, within a stated period, lodge at the following 21
office, submissions about why the holder should not make a 22
petroleum lease application for the stated area-- 23
(i) the office of the department for lodging the submissions, as 24
stated in a gazette notice by the chief executive; 25
(ii) if no office is gazetted under subparagraph (i)--the office of 26
the chief executive. 27
(2) The stated period must be reasonable, but must not be more than 28
6 months. 29
(3) In this section-- 30
s 97 107 s 98
Petroleum and Gas (Production and Safety) Bill 2004
"appropriate lease application" means a petroleum lease application 1
for-- 2
(a) the stated area or an area that is substantially the same as the 3
stated area; or 4
(b) another area the Minister reasonably considers will effectively 5
allow the holder to carry out authorised activities for a petroleum 6
lease in relation to the stated area. 7
97 Taking proposed action 8
(1) Proposed action under section 96 may be taken only if-- 9
(a) the stated period under section 96 has ended; and 10
(b) either-- 11
(i) the holder has not made an appropriate petroleum lease 12
application under section 96; or 13
(ii) any appropriate lease application under section 96 made by 14
the holder has been refused; and 15
(c) the Minister has considered any submissions lodged by the 16
holder within the period. 17
(2) The decision does not take effect until the holder is given an 18
information notice about the decision. 19
(3) A refusal of the application takes effect at end of the appeal period 20
for the decision to refuse.111 21
Division 8--Miscellaneous provisions 22
Subdivision 1--Area provisions 23
98 Area of authority to prospect 24
(1) This section provides for the area of an authority to prospect. 25
(2) The area does not include excluded land for the authority. 26
111 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
s 99 108 s 99
Petroleum and Gas (Production and Safety) Bill 2004
(3) Unless the Minister otherwise decides, the area must form a single 1
parcel of land. 2
(4) The area must not include any of the following ("unavailable 3
land")-- 4
(a) land in the area of another petroleum tenure; 5
(b) excluded land for another petroleum tenure, other than a 6
petroleum lease mentioned in section 99(5)(b); 7
(c) land in the area of a 1923 Act petroleum tenure; 8
(d) excluded land for a 1923 Act petroleum tenure; 9
(e) land that a regulation prescribes as land over which an authority 10
to prospect can not be granted. 11
(5) To remove any doubt, it is declared that if land within the original 12
notional sub-blocks of the authority ceases to be unavailable land, the 13
cessation itself does not cause the land to be within the area of the 14
authority. 15
(6) The area may include a part of a block only if the part is all areas 16
within the block that are left after taking away all unavailable land within 17
the block (a "residual block"). 18
(7) The area must be no more than 100 blocks or residual blocks, in any 19
combination. 20
99 Minister's power to decide excluded land 21
(1) The Minister may, at any time, decide excluded land for an authority 22
to prospect or proposed authority to prospect.112 23
(2) However, excluded land-- 24
(a) must be within the original notional sub-blocks of the authority; 25
and 26
(b) can not be a whole block. 27
(3) For subsection (2)(a), if the authority states that its area includes land 28
within a block without including or excluding any particular sub-block, the 29
reference to the block is a reference to all sub-blocks within the block. 30
112 See sections 42 (Provisions of authority to prospect) and 85 (Provisions and term of
renewed authority).
s 100 109 s 100
Petroleum and Gas (Production and Safety) Bill 2004
(4) Excluded land may be described in a way the Minister considers 1
appropriate, including, for example, by area or by reference to a stated type 2
of land. 3
(5) Land ceases to be excluded land for an authority to prospect if-- 4
(a) the block in which the land is located is relinquished or, for any 5
other reason, ceases to be in the area of the authority; or 6
(b) a petroleum lease is granted over any of the area of the authority 7
and the land is excluded land for the lease. 8
100 Minister may add excluded land 9
(1) The Minister may amend an authority to prospect by adding excluded 10
land for the authority to its area only if-- 11
(a) the authority as amended complies with section 98; and 12
(b) the authority holder consents. 13
(2) If land mentioned in subsection (1) is added to the area of the 14
authority the land ceases to be excluded land for the authority. 15
(3) The Minister may amend the provisions of the authority in a way that 16
reflects the inclusion of the excluded land.113 17
(4) Also, the Minister may give the authority holder a notice-- 18
(a) withdrawing, from a stated day, the approval of work program for 19
the authority; and 20
(b) directing the holder to lodge at the relevant office a proposed 21
later work program for the authority that-- 22
(i) complies with the later work program requirements; and 23
(ii) changes the work program for the authority to reflect the 24
inclusion of the excluded land. 25
(5) The amended provisions of the authority or the proposed later work 26
program must not be-- 27
(a) inconsistent with the mandatory conditions for authorities to 28
prospect; or 29
113 See also section 488 (Power to require security for petroleum authority).
s 101 110 s 102
Petroleum and Gas (Production and Safety) Bill 2004
(b) the same as, or substantially the same as, or inconsistent with, 1
any relevant environmental condition for the authority. 2
(6) In this section-- 3
"relevant office" means-- 4
(a) the office of the department for lodging proposed later work 5
programs, as stated in a gazette notice by the chief executive; or 6
(b) if no office is gazetted under paragraph (a)--the office of the 7
chief executive. 8
101 Area of authority to prospect reduced on grant of petroleum lease 9
(1) Land ceases to be included in the area of an authority to prospect if a 10
petroleum lease is granted over the land. 11
(2) If a petroleum lease is granted over all of the area of an authority to 12
prospect, the authority ends.114 13
102 Effect of ending of declaration of potential commercial area 14
(1) This section applies if all or part of the area of an authority to 15
prospect is a potential commercial area and the declaration of the potential 16
commercial area ends more than 12 years after the authority originally took 17
effect.115 18
(2) If the declaration applied to a part of the area of the authority, the part 19
ceases to be included in its area. 20
(3) If the declaration applies to all of the area of the authority, the 21
authority ends.116 22
114 See however, chapter 3, part 4, division 3 (Exception to automatic area reduction of
authority to prospect on grant of petroleum lease).
115 See section 92 (Term of declaration).
116 If the declaration ends less than 12 years after the authority originally took effect,
see section 94 (Potential commercial area still part of authority).
s 103 111 s 104
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Dividing authorities to prospect 1
103 Applying to divide 2
(1) The holder of an authority to prospect (the "original authority") 3
may apply to divide it into 2 or more authorities to prospect (the "new 4
authorities"). 5
(2) However, the holder may apply for a new authority to be granted to 6
another person only if the other person-- 7
(a) agrees to the proposed grant; and 8
(b) is an eligible person. 9
(3) Despite subsections (1) and (2), the holder can not make the 10
application if any of the following is outstanding-- 11
(a) annual rent for the original authority; 12
(b) a civil penalty under section 76 for nonpayment of annual rent; 13
(c) interest payable under section 588117 on annual rent or a civil 14
penalty; 15
(d) petroleum royalty payable for petroleum produced under the 16
original authority and any unpaid petroleum royalty interest on it; 17
(e) security for the original authority, as required under 18
section 488.118 19
104 Requirements for making application 20
The application must-- 21
(a) be in the approved form; and 22
(b) be lodged at-- 23
(i) the office of the department for lodging applications to 24
divide an authority to prospect, as stated in a gazette notice 25
by the chief executive; or 26
117 Section 588 (Interest on amounts owing to the State other than other than for
petroleum royalty)
118 Section 488 (Power to require security for petroleum authority)
s 105 112 s 105
Petroleum and Gas (Production and Safety) Bill 2004
(ii) if no office is gazetted under subparagraph (i)--the office 1
stated in the approved form; or 2
(iii) otherwise--the office of the chief executive; and 3
(c) state whether or not the work program for the original authority 4
to prospect has been complied with; and 5
(d) if the work program for the original authority has not been 6
complied with--state details of, and the reasons for, each 7
noncompliance; and 8
(e) include a proposed later work program for each proposed new 9
authority;119 and 10
(f) address the capability criteria for each proposed holder of the 11
new authorities; and 12
(g) state whether or not the holder has complied with chapter 5, 13
part 7,120 for reports required to be lodged in relation to the 14
original authority; and 15
(h) be accompanied by the fee prescribed under a regulation. 16
105 Deciding application 17
(1) The Minister may make or refuse to make the division. 18
(2) However-- 19
(a) before deciding to make the division, the Minister must decide 20
whether to approve the proposed later work programs for the new 21
authorities;121 and 22
(b) the division can not be granted unless-- 23
(i) the proposed programs have been approved; and 24
(ii) each proposed holder of the new authorities satisfies the 25
capability criteria; and 26
119 For an additional requirement for the proposed work programs, see section 54 (Later
work programs for proposed new authorities).
120 Chapter 5, part 7 (Reporting)
121 See division 3, subdivision 5 (Approval of proposed later work programs).
s 106 113 s 106
Petroleum and Gas (Production and Safety) Bill 2004
(iii) the Minister is satisfied the applicant continues to satisfy 1
any special criteria that applied for deciding the application 2
for the original authority;122 and 3
(iv) the Minister is satisfied the applicant has substantially 4
complied with the original authority. 5
(3) The matters that must be considered in making the division include 6
the work program for the original authority, the proposed later work 7
programs and the capability criteria.123 8
(4) The Minister may, as a condition of making the division, require the 9
applicant to, under section 488124, give security or additional security for all 10
or any of the new authorities within a stated reasonable period. 11
(5) If the applicant does not comply with the requirement, the division 12
may be refused. 13
106 Provisions of new authorities 14
(1) Subject to this section, section 42 applies for the provisions of a new 15
authority as if it were an authority to prospect granted under division 2.125 16
(2) However-- 17
(a) the term of each new authority must not end later than the end of 18
the term of the original authority; and 19
(b) the new authorities must have the same relinquishment days as 20
the original authority; and 21
(3) For the relinquishment condition for the new authorities-- 22
(a) the new authorities are taken to have originally taken effect when 23
the original authority originally took effect; and 24
(b) the original notional sub-blocks of the original authority are 25
divided rateably between the new authorities; and 26
(c) for working out previous relinquishments that are counted for the 27
relinquishment condition for each new authority, the 28
122 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
123 See section 57 (Deciding whether to approve proposed program).
124 Section 488 (Power to require security for petroleum authority)
125 Section 42 (Provisions of authority to prospect)
Division 2 (Obtaining authority to prospect)
s 107 114 s 108
Petroleum and Gas (Production and Safety) Bill 2004
relinquishments previously counted for the relinquishment 1
condition for the original authority are divided rateably between 2
the new authorities. 3
107 Steps after deciding application 4
(1) After the provisions of the new authorities are decided, the applicant 5
and anyone else who will be a holder of any new authority, must be given 6
notice of the relevant provisions and work program.126 7
(2) On refusal to make the division, the applicant must be given notice of 8
the refusal. 9
PART 2--PETROLEUM LEASES 10
Division 1--Key authorised activities 11
Subdivision 1--General provisions 12
108 Operation of sdiv 1 13
(1) This subdivision provides for the key authorised activities for a 14
petroleum lease.127 15
(2) The authorised activities may be carried out despite the rights of an 16
owner or occupier of land on which they are exercised. 17
(3) However, the carrying out of the authorised activities is subject to-- 18
(a) section 6; and 19
(b) subdivision 2; and 20
(c) chapter 3, part 5, division 1; and 21
126 For noncompliance action started, or that could have been taken, against the original
authority holder, see section 792 (Provision for divided petroleum tenures).
127 For other authorised activities, see part 4 (Water rights for petroleum tenures),
chapter 5, part 2, division 3 (Access to private land outside area of petroleum
authority) and part 8 (General provisions for conditions and authorised activities).
s 109 115 s 109
Petroleum and Gas (Production and Safety) Bill 2004
(d) chapters 5 and 9; and 1
(e) the mandatory and other conditions of the lease; and 2
(f) any exclusion or restriction provided for in the lease on the 3
carrying out of the activities; and 4
(g) any other relevant Act or law.128 5
109 Exploration, production and storage activities 6
(1) The lease holder may carry out the following activities in the area of 7
the lease-- 8
(a) exploring for petroleum; 9
(b) subject to section 152129-- 10
(i) testing for petroleum production; and 11
(ii) evaluating the feasibility of petroleum production; and 12
(iii) testing natural underground reservoirs for petroleum 13
storage; 14
(c) petroleum production; 15
(d) evaluating, developing and using natural underground reservoirs 16
for petroleum storage or to store prescribed storage gases, 17
including, for example, to store petroleum or prescribed storage 18
gases for others. 19
(2) However, the holder must not carry out any of the following-- 20
(a) extraction or production of a gasification or retorting product 21
from coal or oil shale by a chemical or thermal process; 22
(b) exploration for coal or oil shale to carry out extraction or 23
production mentioned in paragraph (a). 24
128 Section 6 (Relationship with Mineral Resources Act)
Subdivision 2 (Provisions for coextensive natural underground reservoirs)
Chapter 3 (Provisions for coal seam gas), part 5 (Additional provisions for
petroleum leases), division 1 (Restriction on authorised activities for particular
petroleum leases)
Chapters 5 (Common petroleum authority provisions) and 9 (Safety)
129 Section 152 (Permitted period for production or storage testing)
s 110 116 s 110
Petroleum and Gas (Production and Safety) Bill 2004
(3) The rights under subsection (1) may be exercised only by or for the 1
holder.130 2
(4) The right to store petroleum or prescribed storage gases for others is 3
subject to part 6.131 4
110 Petroleum pipeline and water pipeline construction and operation 5
(1) The lease holder may construct and operate petroleum pipelines and 6
water pipelines in the area of the lease. 7
(2) However, if a petroleum pipeline or water pipeline extends beyond 8
the area of the lease, subsection (1) applies only if the pipeline is 9
completely within-- 10
(a) the area of the lease; and 11
(b) the area of 1 or more other petroleum leases also held by the 12
holder that are contiguous to the lease.132 13
(3) Also, if the pipeline is a water pipeline, the pipeline may only be 14
operated to transport water for the carrying out of an authorised activity for 15
the lease, other than the authorised activity under section 186,133 on an area 16
mentioned in subsection (2). 17
(4) Subsection (3) does not prevent the lease holder from constructing or 18
operating a water pipeline if the holder can otherwise lawfully do so. 19
(5) In this section-- 20
"petroleum pipeline" means a pipeline as defined in section 16. 134
21
"water pipeline" means-- 22
(a) a pipe, or system of pipes for transporting water; and 23
130 See also section 800 (Restriction on petroleum tenure activities).
For who may exercise the rights for the holder, see section 563 (Who may carry out
authorised activity for petroleum authority holder).
131 Part 6 (Third party storage access to natural underground reservoirs)
132 For who owns the pipeline, see chapter 5, part 6 (Ownership of pipelines, equipment
and improvements).
133 Section 186 (Right to allow use of associated water for domestic or stock purposes)
134 Section 16 (What is a "pipeline")
s 111 117 s 112
Petroleum and Gas (Production and Safety) Bill 2004
(b) a thing connected to or associated with the pipeline that is 1
necessary for its operation, including, for example, a thing 2
mentioned in section 16(2)(b), examples 1 to 4. 3
111 Petroleum processing 4
(1) The lease holder may-- 5
(a) carry out the processing of petroleum in the area of the lease; and 6
(b) construct and operate a facility for the processing, storage or 7
transport of petroleum in the area of the lease.135 8
(2) Subsection (1) applies for petroleum produced in or outside the area. 9
(3) In this section-- 10
"processing" of petroleum-- 11
(a) includes the separation of LPG only if the separation is incidental 12
to other petroleum processing; and 13
(b) does not include refining petroleum.136 14
112 Incidental activities 15
(1) The lease holder may carry out an activity (an "incidental activity") 16
in the area of the lease if carrying out the activity is reasonably necessary 17
for, or incidental to, another authorised activity for the lease.137 18
19
Examples of incidental activities--
20
1. constructing or operating plant or works, including, for example, communication
21
systems, compressors, powerlines, pumping stations, reservoirs, roads, evaporation
22
or storage ponds and tanks
23
2. constructing or using temporary structures or structures of an industrial or
24
technical nature, including, for example, mobile and temporary camps
25
3. removing vegetation for, or for the safety of, exploration or testing under
26
section 152(1)
135 For ownership of petroleum produced, see chapter 1, part 4 (Property in petroleum).
136 For activities mentioned in paragraphs (a) and (b), see chapter 4, part 3 (Petroleum
facility licences).
137 See also part 10 (General provisions for petroleum wells, water supply bores and
water observation bores), section 239 (Coordination arrangement overrides relevant
leases), chapter 5 (Common petroleum authority provisions) and section 20(2)
(What are the "conditions" of a petroleum authority).
s 113 118 s 115
Petroleum and Gas (Production and Safety) Bill 2004
(2) However, constructing or using a structure, other than a temporary 1
structure, for office or residential accommodation is not an incidental 2
activity.138 3
Subdivision 2--Provisions for coextensive natural underground 4
reservoirs 5
113 Application of sdiv 2 6
This subdivision applies if a natural underground reservoir in the area of 7
a petroleum lease extends to-- 8
(a) the area of an adjacent petroleum lease or coal mining lease or oil 9
shale mining lease (an "adjacent lease"); or 10
(b) if a person has applied for a petroleum lease, coal mining lease or 11
oil shale mining lease that will, if granted, be an adjacent 12
lease--the area of the proposed lease. 13
114 Coordination arrangement may be made about mining or 14
production from reservoir 15
The petroleum lease holder and an adjacent lease holder, or proposed 16
adjacent lease holder, may make a coordination arrangement that provides 17
for the petroleum that can, under the Mineral Resources Act139 or this Act, 18
be produced from the reservoir from within the area of the petroleum lease 19
and the adjacent lease, or proposed adjacent lease.140 20
115 Restriction on petroleum production from reservoir 21
(1) The petroleum lease holder must not produce petroleum that comes, 22
or is likely to come, from the part of the reservoir that is in the area of an 23
adjacent lease unless the production is carried out under-- 24
138 For development generally, see the Integrated Planning Act 1997, chapter 3
(Integrated development assessment system (IDAS)) and schedule 9 (Development
that is exempt development for a planning scheme).
139 See the Mineral Resources Act, section 318CM (Limited entitlement to mine coal
seam gas).
140 For the making of coordination arrangements, see part 8 (Petroleum activities
coordination).
s 116 119 s 116
Petroleum and Gas (Production and Safety) Bill 2004
(a) a coordination arrangement mentioned in section 114; or 1
(b) a decision of the tribunal under section 116. 2
(2) However, if the adjacent lease was granted after the petroleum lease 3
was granted and, when the adjacent lease was granted, the petroleum lease 4
holder was producing petroleum mentioned in subsection (1), 5
subsection (1) does not apply to the petroleum lease holder until the later of 6
the following-- 7
(a) 6 months after granting of the adjacent lease; 8
(b) if within the 6 months the petroleum lease holder applies to the 9
tribunal under section 116--when the tribunal decides the 10
application. 11
116 Dispute resolution by tribunal 12
(1) This section applies if the petroleum lease holder or an adjacent lease 13
holder (the "parties") have not made a coordination arrangement 14
mentioned in section 114. 15
(2) Either party may apply to the tribunal for it to decide-- 16
(a) the amount or proportion of petroleum mentioned in 17
section 114(1) that, when produced, is owned by each party; and 18
(b) how the parties are to bear the costs of the production; and 19
(c) how the production is to be coordinated. 20
21
Example for paragraph (c)--
22
Fixing a minimum distance from the boundary between the petroleum
23
lease and the adjacent lease for petroleum production from the reservoir
24
under the petroleum lease.
(3) If the adjacent lease was granted after the petroleum lease was 25
granted, the decision may apply from the grant of the adjacent lease. 26
(4) In making the decision, the tribunal-- 27
(a) must consider whether the safety of production activities on any 28
adjoining mining or petroleum lease would be compromised; and 29
(b) must attempt to optimise petroleum production under the 30
petroleum lease and mining or production under the adjacent 31
lease in a way that maximises the benefit for all Queenslanders; 32
and 33
s 117 120 s 118
Petroleum and Gas (Production and Safety) Bill 2004
(c) may make the decision without having regard to the issue of who 1
would have, under another Act or law, otherwise owned the 2
petroleum. 3
(5) In considering the benefit to all Queenslanders, the tribunal must 4
have regard to the public interest. 5
Division 2--Transition from authority to prospect to petroleum lease 6
Subdivision 1--Applying for petroleum lease 7
117 Who may apply 8
(1) An authority to prospect holder may apply for a petroleum lease over 9
all or part of the area of the authority.141 10
(2) Also, a person other than the holder may apply for the lease-- 11
(a) jointly with the holder; or 12
(b) with the holder's consent. 13
(3) An application under this section is an "ATP-related application". 14
118 Requirements for making ATP-related application 15
An ATP-related application must-- 16
(a) be in the approved form; and 17
(b) be lodged at-- 18
(i) the office of the department for lodging ATP-related 19
applications, as stated in a gazette notice by the chief 20
executive; or 21
(ii) if no office is gazetted under subparagraph (i)--the office 22
stated in the approved form; or 23
(iii) otherwise--the office of the chief executive; and 24
(c) address the capability criteria; and
142
25
141 See also section 168 (Area of petroleum lease).
142 For the criteria, see section 121(1)(e) (Requirements for grant).
s 119 121 s 119
Petroleum and Gas (Production and Safety) Bill 2004
(d) include each of the following-- 1
(i) a statement about why the size of the proposed area of the 2
proposed petroleum lease is appropriate for authorised 3
activities under the lease; 4
(ii) a statement about how and when the applicant proposes to 5
consult with, and keep informed, each owner and occupier 6
of private or public land on which authorised activities for 7
the proposed lease are, or are likely to be, carried out;143 8
(iii) information about the matter under section 121(2) on which 9
the applicant seeks to rely to establish the requirements for 10
the grant; 11
(iv) a proposed development plan that complies with the initial 12
development plan requirements;144 and 13
(e) be accompanied by the fee prescribed under a regulation. 14
119 Continuing effect of authority to prospect for ATP-related 15
application 16
(1) This section applies if before the ATP-related application is decided 17
the term of the authority to prospect ends. 18
(2) Despite the ending of the term, the authority continues in force until 19
the earlier of the following to happen-- 20
(a) the start of the term of the petroleum lease; 21
(b) a refusal of the ATP-related application takes effect;145 22
(c) the application is withdrawn; 23
(d) the authority is cancelled under this Act.146 24
143 See section 153 (Obligation to consult with particular owners and occupiers).
144 See division 4, subdivision 2 (Requirements for proposed initial development plans).
145 See section 125 (When refusal takes effect).
146 See also section 56 (Authority taken to have work program until decision on
whether to approve proposed work program).
s 120 122 s 121
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Deciding ATP-related applications 1
120 Right to grant if requirements for grant met 2
(1) Subject to section 122, the Minister must grant the petroleum lease if 3
the Minister is satisfied the requirements mentioned in section 121 4
(the "requirements for grant") have been complied with. 5
(2) The lease must be refused if the Minister is not satisfied any 6
requirement for grant, other than the requirement mentioned 7
section 121(1)(c), has been complied with. 8
(3) If the Minister is satisfied the requirements for grant, other than the 9
requirement mentioned section 121(1)(c), have been complied with, the 10
Minister may grant the lease. 11
121 Requirements for grant 12
(1) The requirements for grant are each of the following-- 13
(a) the applicant is an eligible person; 14
(b) the proposed area of the proposed petroleum lease-- 15
(i) is appropriate for the authorised activities proposed to be 16
carried out; and 17
(ii) if the authorised activities relate to petroleum 18
production--contains adequately identified resources and 19
reserves of petroleum; and 20
(iii) if the authorised activities relate to petroleum 21
storage--contains an adequately identified reservoir that is 22
adequate for the proposed purpose of the lease; 23
(c) the conditions of the relevant authority to prospect have been 24
substantially complied with; 25
(d) the Minister has approved the applicant's proposed initial 26
development plan for the lease;147 27
147 For approval of development plans, see division 4, subdivision 2 (Requirements for
proposed initial development plans).
s 122 123 s 122
Petroleum and Gas (Production and Safety) Bill 2004
(e) the Minister is of the opinion that the applicant is capable of 1
carrying out authorised activities for the lease, having regard to 2
the applicant's-- 3
(i) financial and technical resources; and 4
(ii) ability to manage petroleum exploration and production; 5
(f) a relevant environmental authority for the lease has been issued; 6
(g) the applicant has established 1 of the matters mentioned in 7
subsection (2). 8
(2) For subsection (1)(g), the matters are any of the following-- 9
(a) commercial petroleum production in the area of the lease is, or is 10
likely, within 2 years after the lease is to take effect; 11
(b) the applicant has-- 12
(i) entered into a contract, coordination arrangement or other 13
arrangement (a "relevant arrangement") to supply 14
petroleum produced from the area of the lease; and 15
(ii) lodged at the office required for lodging ATP-related 16
applications a written declaration that the petroleum 17
produced from the area of the lease will meet all or some of 18
the petroleum required to be supplied under the relevant 19
arrangement; 20
(c) the area of the lease is suitable for underground petroleum 21
storage and the storage will, or is likely to, start before the later 22
of the following to happen-- 23
(i) the end of 5 years after the lease is to take effect; 24
(ii) the end of the plan period for the applicant's proposed 25
development plan for the lease. 26
(3) The matters mentioned in subsection (1)(e) are the "capability 27
criteria". 28
(4) A person "satisfies" the capability criteria if the Minister forms the 29
opinion about the person mentioned in subsection (1)(e). 30
122 Exception for particular relevant arrangements 31
Despite section 120, the application may be refused if the Minister-- 32
(a) is not satisfied of a matter under section 121(2)(a) or (c); and 33
s 123 124 s 123
Petroleum and Gas (Production and Safety) Bill 2004
(b) is satisfied the applicant has entered into a relevant arrangement, 1
but the Minister reasonably believes-- 2
(i) the arrangement is not an arms-length commercial 3
transaction; or 4
(ii) supply under the arrangement is unlikely to be carried out. 5
123 Provisions of petroleum lease 6
(1) Each petroleum lease must state its term and area.148 7
(2) The term must-- 8
(a) be for at least the plan period for the initial development plan for 9
the lease; and 10
(b) end no later than 30 years after the lease takes effect. 11
(3) The lease may also state-- 12
(a) conditions or other provisions of the lease, other than conditions 13
or provisions that are-- 14
(i) inconsistent with the mandatory conditions for petroleum 15
leases; or 16
(ii) the same as, or substantially the same as, or inconsistent 17
with, any relevant environmental condition for the lease;149 18
and 19
(b) a day for the lease to take effect; and 20
(c) a day by which petroleum production under the lease is to start 21
(the "production commencement day"). 22
(4) However, the provisions of the lease may exclude or restrict the 23
carrying out of an authorised activity for the lease. 24
(5) The day of effect must not be before the day the lease is granted. 25
(6) If no day of effect is decided, the lease takes effect on the day it is 26
granted. 27
148 See section 168 (Area of petroleum lease).
149 See also section 169 (Minister's power to decide excluded land).
s 124 125 s 126
Petroleum and Gas (Production and Safety) Bill 2004
(7) The production commencement day may be more than 2 years after 1
the day of effect only if the Minister is satisfied the holder has entered into 2
a relevant arrangement. 3
(8) The matters that must be considered in deciding the provisions of the 4
lease include the development plan criteria and capability criteria. 5
124 Information notice about refusal 6
On refusal of the application, the applicant must be given an information 7
notice about the decision to refuse.150 8
125 When refusal takes effect 9
A refusal of the application does not take effect until the end of the 10
appeal period for the decision to refuse.151 11
Division 3--Obtaining petroleum lease by competitive tender 12
Subdivision 1--Preliminary 13
126 Operation of div 3 14
(1) This division provides for a process for the granting of petroleum 15
leases by competitive tender. 16
(2) To remove any doubt, it is declared that a petroleum lease can only be 17
granted under this division, division 2 or division 7, subdivision 2.152 18
150 See however section 829 (Restriction on tribunal's powers for decision not to grant
petroleum lease).
151 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
152 Division 7, subdivision 2 (Dividing petroleum leases)
s 127 126 s 127
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Calls for tenders 1
127 Call for tenders 2
(1) The Minister may publish a notice (a "call for tenders") inviting 3
tenders for a petroleum lease. 4
(2) The call must state-- 5
(a) the proposed area of the lease; and 6
(b) that, under section 169, particular land may be excluded land for 7
the lease;153 and 8
(c) the day and time by which tenders in response to it must be made 9
(the "closing time" for the call); and 10
(d) that the tenders must be lodged before the closing time for the 11
call at the place stated in the approved form for making the 12
tender; and 13
(e) that details about each of the following are available at a stated 14
place-- 15
(i) any proposed conditions of the lease, other than mandatory 16
conditions for petroleum leases, that are likely to impact 17
significantly on exploration or production in the proposed 18
area of the lease; 19
(ii) the required plan period for the initial development plan for 20
the lease; 21
(iii) any criteria ("special criteria"), other than the development 22
plan criteria and capability criteria, proposed to be used to 23
decide whether to grant the lease or to decide its 24
provisions;154 25
(iv) the weight proposed to be given to each development plan 26
criteria, capability criteria and special criteria. 27
(3) The call may state other relevant matters, including, for example, 28
matters relevant to the development plan, capability or special criteria. 29
153 Section 169 (Minister's power to decide excluded land)
See also section 170 (Minister may add excluded land).
154 For the capability criteria and development plan criteria, see sections 121
(Requirements for grant) and 141 (Criteria).
s 128 127 s 129
Petroleum and Gas (Production and Safety) Bill 2004
(4) The area of the proposed lease must comply with section 168.155 1
(5) Subsection (2)(e)(i) does not limit the power under section 133156 to 2
decide conditions of the lease if it is granted. 3
128 Right to tender 4
(1) A person157 may tender for a proposed petroleum lease the subject of 5
a call for tenders. 6
(2) However, the tender-- 7
(a) must comply with the requirements under section 118158 for 8
making an ATP-related application; and 9
(b) be lodged at-- 10
(i) the office or place for lodging tenders for proposed 11
petroleum leases, as stated in a gazette notice by the chief 12
executive; or 13
(ii) if no office or place is gazetted under subparagraph (i)--the 14
office or place stated in the approved form; or 15
(iii) otherwise--the office of the chief executive; and 16
(c) can not be made-- 17
(i) after the closing time for the call; or 18
(ii) for only part of the area of the proposed petroleum lease. 19
129 Right to terminate call for tenders 20
(1) The Minister may, by gazette notice, terminate a call for tenders at 21
any time before deciding to grant a petroleum lease to a person who has 22
made a tender in response to the call. 23
(2) All tenders in response to the call lapse when the call is terminated. 24
155 Section 168 (Area of petroleum lease)
156 Section 133 (Provisions of petroleum lease)
157 See however section 132(2) (Deciding whether to grant petroleum lease).
158 Section 118 (Requirements for making ATP-related application)
s 130 128 s 131
Petroleum and Gas (Production and Safety) Bill 2004
(3) No amount, whether by way of compensation, reimbursement or 1
otherwise is payable by the State to any person for or in connection with 2
the termination. 3
Subdivision 3--Deciding tenders 4
130 Process for deciding tenders 5
Subject to section 134,159 any process the Minister considers appropriate 6
may be used to decide a call for tenders, including, for example, by a 7
process appointing a preferred tenderer on the tenders made in response to 8
the call. 9
131 Provisions for preferred tenderers 10
(1) The Minister may require a preferred tenderer for the call for tenders 11
to-- 12
(a) pay any amounts necessarily incurred, or to be incurred, to 13
enable the petroleum lease to be granted; and 14
15
Example--
16
amounts required to comply with the Commonwealth Native Title Act,
17
part 2, division 3, subdivision P160
(b) to do all or any of the following within a stated reasonable 18
period-- 19
(i) pay the annual rent for the first year of the lease; 20
(ii) give security for the lease, as required under section 488.161 21
(2) If a preferred tenderer does not-- 22
(a) comply with a requirement under subsection (1); or 23
(b) do all things reasonably necessary to allow a petroleum lease to 24
be granted to the tenderer; 25
the Minister may appoint another tenderer to be the preferred tenderer. 26
159 Section 134 (Criteria for decisions)
160 Commonwealth Native Title Act, part 2, division 3, subdivision P (Right to
negotiate)
161 Section 488 (Power to require security for petroleum authority)
s 132 129 s 134
Petroleum and Gas (Production and Safety) Bill 2004
132 Deciding whether to grant petroleum lease 1
(1) The Minister may, after the closing time for the call for tenders-- 2
(a) grant a petroleum lease to 1 tenderer; or 3
(b) refuse to grant any petroleum lease. 4
(2) However-- 5
(a) before deciding to grant the lease, the Minister must decide 6
whether to approve the applicant's proposed initial development 7
plan for the lease;162 and 8
(b) the Minister can not grant the lease unless-- 9
(i) the tenderer is an eligible person; and 10
(ii) the proposed plan has been approved; and 11
(iii) the Minister is satisfied the requirements for grant, other 12
than the requirement mentioned in section 121(1)(c),163 have 13
been complied with; and 14
(iv) a relevant environmental authority for the lease has been 15
issued. 16
133 Provisions of petroleum lease 17
Section 123164 applies to a petroleum lease granted under this division as 18
if the tender for the lease was an ATP-related application. 19
134 Criteria for decisions 20
(1) The matters that must be considered in deciding whether to grant a 21
petroleum lease or its provisions include the development plan criteria, 22
capability criteria and any special criteria. 23
(2) The Minister may give the weight to each of the development plan, 24
capability and special criteria that the Minister considers appropriate in the 25
circumstances. 26
162 See division 4, subdivision 3 (Criteria for deciding whether to approve proposed
initial development plans).
163 Section 121 (Requirements for grant)
164 Section 123 (Provisions of petroleum lease)
s 135 130 s 137
Petroleum and Gas (Production and Safety) Bill 2004
135 Notice to unsuccessful tenderers 1
After a call for tenders has been decided, each tenderer not granted the 2
petroleum lease must be given notice of the decision.165 3
Division 4--Development plans 4
Subdivision 1--Function and purpose of development plan 5
136 Function and purpose 6
(1) The development plan for a petroleum lease or proposed petroleum 7
lease (the "relevant lease") gives detailed information about the nature and 8
extent of activities to be carried out under the relevant lease. 9
(2) The development plan may-- 10
(a) also relate to another petroleum lease or proposed petroleum 11
lease if the other lease or proposed lease relates to the relevant 12
lease; and 13
(b) provide that when the plan is approved it will replace any 14
development plan for the other lease. 15
(3) The purposes of giving the information are to-- 16
(a) allow resource management decisions to be made; and 17
(b) ensure appropriate development of the lease. 18
Subdivision 2--Requirements for proposed initial development plans 19
137 Operation of sdiv 2 20
This subdivision provides for requirements (the "initial development 21
plan requirements") for a proposed initial development plan for a 22
proposed petroleum lease.166 23
165 See also the Judicial Review Act 1991, section 32 (Request for statement of
reasons).
166 For additional requirements for development plans for coal seam gas, see chapter 3,
part 6 (Additional provisions for development plans).
s 138 131 s 138
Petroleum and Gas (Production and Safety) Bill 2004
138 General requirements 1
(1) The proposed plan must provide for each of the following-- 2
(a) an overview of the activities proposed to be carried out under the 3
lease or proposed lease during all of its term; 4
(b) for each year of the plan period-- 5
(i) the nature and extent of activities proposed to be carried out 6
under the lease or proposed lease during the year; and 7
(ii) where the activities are proposed to be carried out; and 8
(iii) the estimated cost of the activities; 9
(c) for each natural underground reservoir in the area of the lease of 10
which the applicant is aware, each of the following-- 11
(i) the location and a verifiable estimate of the amount of 12
petroleum in the reservoir; 13
(ii) the standards and procedures used to make the estimate; 14
(iii) the rate and amount of production proposed from the 15
reservoir; 16
(iv) approximately when the proposed production is to start; 17
(v) a schedule for the proposed production during the plan 18
period; 19
(d) maps that show the matters mentioned in paragraph (b)(i) and (ii) 20
and (c)(i); 21
(e) any other information relevant to the development plan 22
criteria;167 23
(f) reasons why the plan is considered appropriate; 24
(g) another matter prescribed under a regulation. 25
(2) A regulation may impose requirements about the form of the 26
development plan. 27
(3) In this section-- 28
"year", of the plan period, means-- 29
167 See section 141 (Criteria).
s 139 132 s 140
Petroleum and Gas (Production and Safety) Bill 2004
(a) the period starting on the day the plan period starts and ending on 1
the first anniversary of that day; and 2
(b) each subsequent period of 12 months or less during the plan 3
period, starting on each anniversary of that day and ending on-- 4
(i) the next anniversary of that day; or 5
(ii) if the plan period ends before the next anniversary--the day 6
the plan period ends. 7
139 Plan period 8
(1) The proposed plan must state its period. 9
(2) If the proposed plan relates to a tender, the period must be the same 10
as the required period under the relevant call for tenders.168 11
(3) If the proposed plan relates to an ATP-related application, the period 12
must not be longer than-- 13
(a) if the term sought for the lease is less than 5 years from the 14
granting of the lease--the term of the lease; or 15
(b) if the term sought for the lease is 5 years or more from the start of 16
the term--5 years from the start of the term. 17
140 Storage 18
If natural underground reservoir storage is proposed, the proposed plan 19
must include the following-- 20
(a) a program for evaluating, developing and using the reservoir; 21
(b) a verifiable estimate of its storage capacity; 22
(c) the standards and procedures used to make the estimate; 23
(d) a schedule for the storage injection and withdrawal; 24
(e) another matter prescribed under a regulation. 25
168 See section 127 (Call for tenders).
s 141 133 s 143
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Criteria for deciding whether to approve proposed initial 1
development plans 2
3
Note--
4
For the requirement for approval of an initial development plan, see sections 120
5
and 132.169
141 Criteria 6
The matters that must be considered in deciding whether to approve a 7
proposed development plan include each of the following 8
(the "development plan criteria")-- 9
(a) the potential of the area of the proposed petroleum lease for 10
petroleum production and related activities; 11
(b) the nature and extent of the activities; 12
(c) when and where the activities are proposed to be carried out; 13
(d) whether petroleum production sought under the lease will be 14
optimised in the best interests of the State, having regard to the 15
public interest. 16
Subdivision 4--Requirements for proposed later development plans 17
142 Operation of sdiv 4 18
This subdivision provides for requirements (the "later development 19
plan requirements") for a proposed later development plan for a petroleum 20
lease.170 21
143 General requirements 22
(1) The proposed plan must-- 23
169 Section 120 (Right to grant if requirements for grant met) and 132 (Deciding whether
to grant petroleum lease)
170 For the obligation to lodge a proposed later development plan, see section 159
(Obligation to lodge proposed later development plan).
s 144 134 s 145
Petroleum and Gas (Production and Safety) Bill 2004
(a) comply with the initial development plan requirements, as if the 1
reference in section 139(3)171 to the term sought for the lease 2
were a reference to the remaining term, or the renewed term, of 3
the lease; and 4
(b) highlight any significant changes from the current development 5
plan for the lease; and 6
(c) if the current development plan has not been complied 7
with--state the details of, and the reasons for, each 8
noncompliance. 9
(2) If the effect of the proposed plan is to significantly change an activity 10
provided for under the current development plan for the lease, the proposed 11
plan must also state reasons for the change. 12
(3) Also, for a significant change that is a cessation or reduction of 13
petroleum production, the proposed plan must include an evaluation of-- 14
(a) petroleum production potential in the area of the lease; and 15
(b) market opportunities for petroleum production in the area of the 16
lease. 17
144 Later development plans for proposed new leases 18
Proposed later development plans for an application under division 7, 19
subdivision 2,172 to divide a petroleum lease must have a combined effect 20
that is at least the effect of the development plan for the original lease. 21
Subdivision 5--Approval of proposed later development plans 22
145 Application of sdiv 5 23
This subdivision applies if-- 24
171 Section 139 (Plan period)
172 Division 7, subdivision 2 (Dividing petroleum leases)
s 146 135 s 147
Petroleum and Gas (Production and Safety) Bill 2004
(a) under this Act, a proposed later development plan is lodged for 1
approval;173 or 2
(b) the Minister is considering an application under section 235174 3
for approval of a proposed coordination arrangement. 4
146 Petroleum lease taken to have development plan until decision on 5
whether to approve proposed development plan 6
(1) This section applies until-- 7
(a) if the proposed plan is approved--the holder is given notice of 8
the approval; or 9
(b) if approval of the proposed plan is refused--when the refusal 10
takes effect.175 11
(2) Despite the ending of the plan period for the current development 12
plan for the petroleum lease-- 13
(a) the lease is taken to have a development plan; and 14
(b) the holder may carry out any authorised activity for the lease. 15
147 Deciding whether to approve proposed plan 16
(1) The Minister may approve or refuse to approve the proposed plan. 17
(2) The matters that must be considered in deciding whether to approve 18
the proposed plan include each of the following-- 19
(a) the development plan criteria;176 20
(b) the extent to which the current development plan for the lease has 21
been complied with; 22
173 For requirements to lodge a proposed later development plan, see sections 100
(Minister may add excluded land), 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),
division 6 (Renewals) and division 7, subdivision 2 (Dividing petroleum leases).
174 Section 235 (Applying for Ministerial approval of proposed coordination
arrangement)
175 For when the decision takes effect, see section 149 (Steps after, and taking effect of,
decision).
176 See section 141 (Criteria).
s 148 136 s 148
Petroleum and Gas (Production and Safety) Bill 2004
(c) if the proposed plan provides for a significant change that is a 1
cessation or reduction of petroleum production-- 2
(i) whether the cessation or reduction is reasonable; and 3
(ii) whether the petroleum lease holder has taken all reasonable 4
steps to prevent the cessation or reduction. 5
(3) Also, if the lease was granted in response to a tender, any other 6
development plan proposed by other tenderers for the lease must be taken 7
into account. 8
(4) However, subsection (3) applies only to the extent the other plan 9
includes the period of the proposed plan. 10
148 Power to require relinquishment 11
(1) This section applies if the proposed plan provides for a significant 12
change that is a cessation or reduction of petroleum production. 13
(2) The Minister may approve the proposed plan, but-- 14
(a) decide (a "deferral decision")-- 15
(i) to defer the taking of effect of the approval until the 16
petroleum lease holder relinquishes, by a notice lodged at 17
the following office (the "relevant office"), a stated part or 18
percentage of the area of the lease on or before a stated 19
day-- 20
(A) the office of the department for lodging relinquishment 21
notices, as stated in a gazette notice by the chief 22
executive; 23
(B) if no office is gazetted under 24
subsubparagraph (A)--the office of the chief 25
executive; and 26
(ii) that the decision to approve the proposed plan is replaced by 27
a decision not to approve it if the notice is not lodged on or 28
before the stated day; or 29
(b) impose a condition on the lease requiring its holder to relinquish, 30
by a notice lodged at the relevant office, a stated part or 31
percentage of the area of the lease at stated times or intervals. 32
(3) The public interest must be considered before making a deferral 33
decision or imposing the condition. 34
s 149 137 s 150
Petroleum and Gas (Production and Safety) Bill 2004
(4) A relinquishment under subsection (2)(a)(i) takes effect on the day 1
after the notice is lodged. 2
149 Steps after, and taking effect of, decision 3
(1) On approval of the proposed later development plan, the holder must 4
be given notice of the approval. 5
(2) The approval takes effect when the holder is given the notice or, if the 6
notice states a later day of effect, on that later day. 7
(3) The holder must be given an information notice about-- 8
(a) a decision to refuse to approve the proposed plan; or 9
(b) a decision, under section 148, to make a deferral decision or 10
impose a condition. 11
(4) A refusal does not takes effect until the end the appeal period for the 12
decision to refuse. 13
Division 5--Key mandatory conditions for petroleum leases 14
150 Operation of div 5 15
This division provides for particular mandatory conditions for petroleum 16
leases. 17
18
Note--
19
1. The following provisions also impose mandatory conditions on petroleum leases--
20
· division 1
21
· parts 4, 9 and 10
22
· sections 181 and 202
23
· part 6, division 2, subdivision 2
24
· chapter 3, part 5, division 2
s 151 138 s 151
Petroleum and Gas (Production and Safety) Bill 2004
1
· chapter 5.177
2
2. For what is a `mandatory condition', see section 20(2).178
151 Restriction on flaring or venting 3
(1) A petroleum lease holder must not flare or vent petroleum in a 4
gaseous state produced under the lease unless the flaring or venting is 5
authorised under this section. 6
(2) Flaring the gas is authorised if it is not commercially or technically 7
feasible to use it-- 8
(a) commercially under the authority; or 9
(b) for an authorised activity for the authority. 10
(3) Venting the gas is authorised if-- 11
(a) it is not safe to use the gas for a purpose mentioned in 12
subsection (2)(a) or (b) or to flare it; or 13
(b) flaring it is not technically practicable. 14
(4) Venting the incidental coal seam gas is also authorised if-- 15
(a) it is being used, or is proposed to be used, under a greenhouse 16
abatement scheme; and 17
(b) if subsection (1) were to apply, the direct or indirect benefit the 18
mining lease holder would otherwise obtain because of the use of 19
the gas under the scheme would be reduced. 20
(5) In this section-- 21
"greenhouse abatement scheme" means-- 22
177 Division 1 (Key authorised activities)
Parts 4 (Water rights for petroleum tenures), 9 (Existing Water Act bores) and 10
(General provisions for petroleum wells, water supply bores and water observation
bores)
Sections 181 and 202 (Additional condition of relevant petroleum tenure)
Part 6, division 2, subdivision 2 (Negotiation obligations of petroleum lease holders
and existing users)
Chapter 3 (Provisions for coal seam gas), part 5 (Additional provisions for
petroleum leases), division 2 (Conditions)
Chapter 5 (Common petroleum authority provisions)
178 Section 20 (What are the "conditions" of a petroleum authority)
s 152 139 s 153
Petroleum and Gas (Production and Safety) Bill 2004
(a) the Electricity Supply Act 1995 (NSW), part 8A;179 or 1
(b) the Commonwealth's Greenhouse Gas Abatement Program; or 2
(c) another scheme about the abatement of greenhouse gases 3
prescribed under a regulation. 4
152 Permitted period for production or storage testing 5
(1) Subject to section 151, a petroleum lease holder may carry out-- 6
(a) testing ("production testing") for petroleum production from 7
each petroleum well in the area of the lease; and 8
(b) testing each natural underground reservoir in the area for 9
petroleum storage. 10
(2) However, production testing may be carried out for more than 11
30 days from when the testing on the petroleum well first starts only with 12
the Minister's approval. 13
(3) The approval may be given on the conditions the Minister considers 14
appropriate. 15
(4) A condition may require the holder to pay petroleum royalty for 16
petroleum produced from production testing for all or part of the period 17
that starts at the end of the 30 days and ends when the approval ends. 18
153 Obligation to consult with particular owners and occupiers 19
(1) A petroleum lease holder must consult, or use reasonable endeavours 20
to consult, with each owner and occupier of private or public land on which 21
authorised activities for the lease are, or are likely to be, carried out. 22
(2) The consultation must be about the carrying out of authorised 23
activities for the lease (including, for example, crossing access land for the 24
lease) to the extent they relate to the owners and occupiers. 25
(3) The consultation must be carried out in the way and at the times-- 26
(a) provided for in the lease; or 27
179 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), section 97K (Greenhouse gas benchmark rules).
s 154 140 s 156
Petroleum and Gas (Production and Safety) Bill 2004
(b) if the lease does not provide for how the consultation must be 1
carried out--approved by the Minister. 2
(4) This section does not limit chapter 5, part 2 or 3.180 3
(5) A failure to comply with this section does not prevent authorised 4
activities for the lease from being carried out. 5
154 Obligation to commence production 6
(1) A petroleum lease holder must start petroleum production under the 7
lease on or before the later of the following-- 8
(a) the end of 2 years after the lease takes effect; 9
(b) any production commencement day for the lease. 10
(2) However, subsection (1) does not apply if the development plan for 11
the lease only provides for natural underground reservoir storage. 12
155 Petroleum royalty and annual rent 13
(1) A petroleum lease holder must pay the State-- 14
(a) petroleum royalty as required under chapter 6; and
181
15
(b) the annual rent, as prescribed under a regulation.182 16
(2) The annual rent must be paid in the way, and on or before the day, 17
prescribed under a regulation. 18
156 Civil penalty for nonpayment of annual rent 19
(1) If a petroleum lease holder does not pay the annual rent as required 20
under section 155, the holder must also pay the State a civil penalty. 21
(2) The amount of the penalty is 15% of the rent. 22
(3) The penalty-- 23
180 Chapter 5, part 2 (Private land) or 3 (Public land)
181 Chapter 6 (Petroleum royalty)
182 See also section 588 (Interest on amounts owing to the State other than for
petroleum royalty).
s 157 141 s 159
Petroleum and Gas (Production and Safety) Bill 2004
(a) must be paid on the day after the last day for payment of the rent; 1
and 2
(b) is still payable even if the holder later pays the rent. 3
157 Requirement to have development plan 4
The holder of a petroleum lease must have a development plan for the 5
lease. 6
7
Note--
8
The only `development plan' for a petroleum lease is its current initial or later
9
development plan as approved under division 4. See the definition of that term in
10
section 24. For the requirement to lodge a proposed later development plan and its
11
approval, see section 159 and division 4, subdivision 5.183
158 Compliance with development plan 12
(1) A petroleum lease holder must comply with the development plan for 13
the lease.184 14
(2) However, subsection (1) does not apply to a failure to comply with 15
the plan that is an act or omission by the holder to ensure compliance with 16
an insufficiency of supply direction under the Gas Supply Act 2003. 17
159 Obligation to lodge proposed later development plan 18
(1) This section imposes an obligation on a petroleum lease holder to 19
lodge a proposed later development plan for the lease. 20
21
Note--
22
1. For approval of the proposed plan, see division 4, subdivision 5.185
23
2. If the holder wishes to renew the lease, a proposed later development plan must be
24
included in the renewal application. See section 162(1).186
183 Division 4 (Development plans), subdivision 5 (Approval of proposed later
development plans)
Section 159 (Obligation to lodge proposed later development plan)
184 See also section 146 (Petroleum lease taken to have development plan until decision
on whether to approve proposed development plan).
185 Division 4, subdivision 5 (Approval of proposed later development plans).
186 Section 162 (Requirements for making renewal application)
s 159 142 s 159
Petroleum and Gas (Production and Safety) Bill 2004
(2) The obligation is complied with only if the proposed later 1
development plan-- 2
(a) is lodged at-- 3
(i) the office of the department for lodging proposed later 4
development plans, as stated in a gazette notice by the chief 5
executive; or 6
(ii) if no office is gazetted under subparagraph (i)--the office of 7
the chief executive; and 8
(b) complies with the later development plan requirements;187 and 9
(c) is accompanied by the relevant fee. 10
(3) A proposed later development plan must be lodged-- 11
(a) at least 40, but no more than 80, business days before the end of 12
the plan period for its current development plan (the "current 13
plan period"); or 14
(b) as soon as reasonably practicable after the holder becomes aware 15
of the need to change an authorised activity for the lease that will 16
significantly change the type or extent of an activity provided for 17
under the development plan. 18
(4) However, if before the end of the current plan period, a decision is 19
made not to approve a proposed later development plan lodged under 20
subsection (3), the holder may, within the period, lodge another proposed 21
later development plan. 22
(5) If the holder does not lodge any proposed later development plan 23
before the end of the current plan period-- 24
(a) the holder must be given a notice requiring the holder to lodge a 25
proposed later development plan for the lease within 20 business 26
days after the giving of the notice; and 27
(b) the holder must comply with the requirement. 28
(6) In this section-- 29
"relevant fee", for the lodgment of the proposed plan, means-- 30
(a) if the proposed plan is lodged within the time required under 31
under subsection (3)--the fee prescribed under a regulation; or 32
187 See division 4, subdivision 4 (Requirements for proposed later development plans).
s 160 143 s 161
Petroleum and Gas (Production and Safety) Bill 2004
(b) if the proposed plan is lodged after the time required under 1
subsection (3) and-- 2
(i) if it is lodged under subsection (4)--nil; or 3
(ii) if it is not lodged under subsection (4) and it is lodged 4
before the end of the current plan period--an amount that is 5
10 times the prescribed fee; or 6
(iii) it is not lodged under subsection (4) and it is lodged after 7
the end of the current plan period--an amount that is 8
20 times the prescribed fee. 9
160 Consequence of failure to comply with notice to lodge proposed 10
later development plan 11
(1) If a petroleum lease holder does not comply with a requirement 12
under section 159(5)(a), the lease is cancelled. 13
(2) However, the cancellation does not take effect until the holder is 14
given a notice stating that the lease has been cancelled because of the 15
operation of subsection (1). 16
Division 6--Renewals 17
161 Conditions for renewal application 18
(1) A petroleum lease holder may apply to renew the lease only if none 19
of the following is outstanding-- 20
(a) annual rent for the lease; 21
(b) a civil penalty under section 156 for nonpayment of annual rent; 22
(c) interest payable under section 588188 on annual rent or a civil 23
penalty; 24
(d) petroleum royalty for petroleum produced under the lease and 25
any unpaid petroleum royalty interest on it; 26
(e) security for the lease, as required under section 488.189 27
188 Section 588 (Interest on amounts owing to the State other than for petroleum
royalty)
189 Section 488 (Power to require security for petroleum authority)
s 162 144 s 162
Petroleum and Gas (Production and Safety) Bill 2004
(2) Also, the application can not be made-- 1
(a) more than 80 business days before the end of the term of the 2
lease; or 3
(b) after the lease has ended. 4
(3) However, the Minister may allow the application to be made up to 5
2 years before the end of the term of the lease if the Minister is of the 6
opinion that-- 7
(a) a storage agreement is in force for the lease or the holder has 8
negotiated, or is negotiating, a proposed storage agreement for 9
the lease; and 10
(b) the agreement or proposed agreement will be in force after the 11
proposed renewed lease takes effect. 12
162 Requirements for making renewal application 13
(1) The application must-- 14
(a) be in the approved form; and 15
(b) be lodged at-- 16
(i) the office of the department for lodging petroleum lease 17
renewal applications, as stated in a gazette notice by the 18
chief executive; or 19
(ii) if no office is gazetted under subparagraph (i)--the office 20
stated in the approved form; or 21
(iii) otherwise--the office of the chief executive; and 22
(c) state whether or not the development plan for the petroleum lease 23
has been complied with; and 24
(d) if the development plan has not been complied with--state 25
details of, and the reasons for, each noncompliance; and 26
(e) include a proposed later development plan for the renewed lease; 27
and 28
(f) include a statement about how and when the applicant proposes 29
to consult with, and keep informed, each owner and occupier of 30
s 163 145 s 163
Petroleum and Gas (Production and Safety) Bill 2004
private or public land on which authorised activities for the 1
renewed lease are, or are likely to be, carried out;190 and 2
(g) state whether or not the applicant has complied with chapter 5, 3
part 7,191 for reports required to be lodged in relation to the lease; 4
and 5
(h) be accompanied by-- 6
(i) the application fee prescribed under a regulation; and 7
(ii) if the application is made less than 40 business days before 8
the end of the term of the lease--the late fee prescribed 9
under a regulation. 10
(2) The proposed later development plan must comply with the later 11
development plan requirements.192 12
163 Continuing effect of lease for renewal application 13
(1) This section applies if the term of the petroleum lease ends before the 14
application is decided. 15
(2) Despite the ending of the term, the lease continues in force until the 16
earlier of the following to happen-- 17
(a) the start of any renewed term of the lease; 18
(b) a refusal of the application takes effect;193 19
(c) the application is withdrawn; 20
(d) the lease is cancelled under this Act.194 21
(3) If the lease is renewed, subsection (2) is taken never to have applied 22
for the period from the end of the term of the lease being renewed, as stated 23
in that lease.195 24
190 See section 153 (Obligation to consult with particular owners and occupiers).
191 Chapter 5, part 7 (Reporting)
192 See division 4, subdivision 4 (Requirements for proposed later development plans).
For approval of the proposed plan, see division 4, subdivision 5 (Approval of
proposed later development plans).
193 See section 167 (When refusal takes effect).
194 See also section 146 (Petroleum lease taken to have development plan until decision
on whether to approve proposed development plan).
195 See section 165(4) (Provisions and term of renewed lease).
s 164 146 s 165
Petroleum and Gas (Production and Safety) Bill 2004
164 Deciding application 1
(1) The Minister may grant or refuse the renewal. 2
(2) However-- 3
(a) before deciding to grant the renewal, the Minister must decide 4
whether to approve the applicant's proposed later development 5
plan for the renewed petroleum lease;196 and 6
(b) the renewal can not be granted unless-- 7
(i) the proposed plan has been approved; and 8
(ii) the Minister considers the applicant satisfies the capability 9
criteria and has substantially complied with the lease being 10
renewed; and 11
(iii) a relevant environmental authority for the renewed lease has 12
been issued. 13
(3) Also, the Minister may, as a condition of deciding to grant the 14
application, require the applicant to do all or any of the following within a 15
stated reasonable period-- 16
(a) pay the annual rent for the first year of the renewed lease; 17
(b) give, under section 488,197 security for the renewed lease. 18
(4) If the applicant does not comply with the requirement, the 19
application may be refused. 20
165 Provisions and term of renewed lease 21
(1) Subject to this section, section 123198 applies to the renewed 22
petroleum lease as if it were a petroleum lease granted under division 2.199 23
(2) The conditions or other provisions of the renewed lease may be 24
different from the conditions or other provisions of the petroleum lease 25
being renewed. 26
196 See division 4, subdivision 5 (Approval of proposed later development plan).
197 Section 488 (Power to require security for petroleum authority)
198 Section 123 (Provisions of petroleum lease)
199 Division 2 (Transition from authority to prospect to petroleum lease)
s 166 147 s 166
Petroleum and Gas (Production and Safety) Bill 2004
(3) The area of the renewed lease must not be more than the area of the 1
petroleum lease being renewed immediately before the renewed lease is to 2
take effect. 3
(4) If the renewal is decided before the end of the term of the petroleum 4
lease being renewed as stated in that lease (the "previous term"), the term 5
of the renewed lease is taken to start from the end of the previous term. 6
(5) If the renewed lease is decided after the previous term, the term of the 7
renewed lease starts immediately after the end of the previous term, but-- 8
(a) the conditions of the renewed lease do not start until the lease 9
holder is given notice of them; and 10
(b) until the notice is given, the conditions of the petroleum lease 11
being renewed apply to the renewed lease as if they were its 12
conditions. 13
(6) The term of the renewed lease must not be more than-- 14
(a) if it has not been previously renewed--the original term of the 15
lease; or 16
(b) if it has been previously renewed--its last renewed term. 17
166 Information notice about refusal 18
On refusal of the application, the applicant must be given an information 19
notice about the decision to refuse. 20
s 167 148 s 168
Petroleum and Gas (Production and Safety) Bill 2004
167 When refusal takes effect 1
A refusal of the application does not take effect until the end of the 2
appeal period for the decision to refuse.200 3
Division 7--Miscellaneous provisions 4
Subdivision 1--Area and term of petroleum lease 5
168 Area of petroleum lease 6
(1) This section provides for the area of a petroleum lease. 7
(2) The area does not include excluded land for the lease. 8
(3) Unless the Minister otherwise decides, the area must form a single 9
parcel of land. 10
(4) The area must not include any of the following ("unavailable 11
land")-- 12
(a) land in the area of another petroleum tenure, other than land that 13
will, under section 101,201 cease to be included in the area of an 14
authority to prospect on the grant of the lease; 15
(b) excluded land for another petroleum tenure; 16
(c) land in the area of a 1923 Act petroleum tenure; 17
(d) excluded land for a 1923 Act petroleum tenure; 18
(e) land that a regulation prescribes as land over which a petroleum 19
lease can not be granted. 20
(5) To remove any doubt, it is declared that if land within any sub-block 21
that the lease states is included in the area of the lease ceases to be 22
unavailable land, the cessation itself does not cause the land to be within 23
the area of the lease. 24
(6) For subsection (5), if the lease states that its area includes land within 25
a block without including or excluding any particular sub-block, the 26
reference to the block is a reference to all sub-blocks within the block. 27
200 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
201 Section 101 (Area of authority to prospect reduced on grant of petroleum lease)
s 169 149 s 170
Petroleum and Gas (Production and Safety) Bill 2004
(7) The area may include a part of a sub-block only if the part is all areas 1
within the sub-block that are left after taking away all unavailable land 2
within the sub-block (a "residual sub-block"). 3
(8) The area must be no more than 75 sub-blocks or residual sub-blocks, 4
in any combination. 5
169 Minister's power to decide excluded land 6
(1) The Minister may, at any time, decide excluded land for a petroleum 7
lease or proposed petroleum lease.202 8
(2) However, excluded land-- 9
(a) must be within any sub-block that the lease states is included in 10
the area of the lease; and 11
(b) can not be a whole sub-block. 12
(3) For subsection (2)(a), if the lease states that its area includes land 13
within a block without including or excluding any particular sub-block, the 14
reference to the block is a reference to all sub-blocks within the block. 15
(4) Excluded land may be described in a way the Minister considers 16
appropriate, including, for example, by area or by reference to a stated type 17
of land. 18
(5) Land ceases to be excluded land for a petroleum lease if, for any 19
reason, the sub-block in which the land is located ceases to be in the area of 20
the lease. 21
170 Minister may add excluded land 22
(1) The Minister may amend a petroleum lease by adding excluded land 23
for the lease to its area only if-- 24
(a) the lease as amended complies with section 168; and 25
(b) the lease holder consents. 26
(2) If land mentioned in subsection (1) is added to the area of the lease, 27
the land ceases to be excluded land for the lease. 28
202 See sections 123 (Provisions of petroleum lease), 133 (Provisions of petroleum
lease) and 165 (Provisions and term of renewed lease).
s 171 150 s 171
Petroleum and Gas (Production and Safety) Bill 2004
(3) The Minister may amend the provisions of the lease in a way that 1
reflects the inclusion of the excluded land.203 2
(4) Also, the Minister may give the lease holder a notice-- 3
(a) withdrawing, from a stated day, the approval of the development 4
plan for the lease; and 5
(b) directing the holder to lodge at the relevant office a proposed 6
later development plan for the lease that-- 7
(i) complies with the later development plan requirements; and 8
(ii) changes the development plan for the lease to reflect the 9
inclusion of the excluded land. 10
(5) The amended provisions of the lease or the proposed later 11
development plan must not be-- 12
(a) inconsistent with the mandatory conditions for petroleum leases; 13
or 14
(b) the same as, or substantially the same as, or inconsistent with, 15
any relevant environmental condition for the lease. 16
(6) In this section-- 17
"relevant office" means-- 18
(a) the office of the department for lodging proposed later 19
development plans, as stated in a gazette notice by the chief 20
executive; or 21
(b) if no office is gazetted under paragraph (a)--the office of the 22
chief executive. 23
Subdivision 2--Dividing petroleum leases 24
171 Applying to divide 25
(1) The holder of a petroleum lease (the "original lease") may apply to 26
divide it into 2 or more petroleum leases (the "new leases"). 27
(2) However, the holder may apply for a new lease to be granted to 28
another person only if the other person-- 29
203 See also section 488 (Power to require security for petroleum authority).
s 172 151 s 172
Petroleum and Gas (Production and Safety) Bill 2004
(a) agrees to the proposed grant; and 1
(b) is an eligible person. 2
(3) Despite subsections (1) and (2), the holder can not make the 3
application if any of the following is outstanding-- 4
(a) annual rent for the original lease; 5
(b) a civil penalty under section 156 for nonpayment of annual rent; 6
(c) interest payable under section 588204 on annual rent or a civil 7
penalty; 8
(d) petroleum royalty payable for petroleum produced under the 9
original lease and any unpaid petroleum royalty interest on it; 10
(e) security for the original lease, as required under section 488.205 11
172 Requirements for making application 12
The application must-- 13
(a) be in the approved form; and 14
(b) be lodged at-- 15
(i) the office of the department for lodging applications to 16
divide a petroleum lease, as stated in a gazette notice by the 17
chief executive; or 18
(ii) if no office is gazetted under subparagraph (i)--the office 19
stated in the approved form; or 20
(iii) otherwise--the office of the chief executive; and 21
(c) state whether or not the development plan for the original lease 22
has been complied with; and 23
(d) if the development plan for the original lease has not been 24
complied with--state details of, and the reasons for, each 25
noncompliance; and 26
204 Section 588 (Interest on amounts owing to the State other than for petroleum
royalty)
205 Section 488 (Power to require security for petroleum authority)
s 173 152 s 173
Petroleum and Gas (Production and Safety) Bill 2004
(e) include a proposed later development plan for each proposed 1
new lease;206 and 2
(f) address the capability criteria for each proposed holder of the 3
new leases; and 4
(g) state whether or not the holder has complied with chapter 5, 5
part 7,207 for reports required to be lodged in relation to the 6
original lease; and 7
(h) be accompanied by the fee prescribed under a regulation. 8
173 Deciding application 9
(1) The Minister may make or refuse to make the division. 10
(2) However-- 11
(a) before deciding to make the division, the Minister must decide 12
whether to approve the proposed later development plans for the 13
new leases;208 and 14
(b) the division can not be made unless-- 15
(i) the proposed plans have been approved; and 16
(ii) the applicant has established 1 of the matters mentioned in 17
section 121(2);209 and 18
(iii) each proposed holder of the new leases satisfies the 19
capability criteria; and 20
(iv) the Minister is satisfied the applicant continues to satisfy 21
any special criteria that applied for deciding the application 22
for the original lease;210 and 23
(v) the Minister is satisfied the applicant has substantially 24
complied with the original lease. 25
206 For an additional requirement for the proposed development plans, see section 144
(Later development plans for proposed new leases).
207 Chapter 5, part 7 (Reporting)
208 See division 4, subdivision 5 (Approval of proposed later development plans).
209 Section 121 (Requirements for grant)
210 See sections 35(2)(e)(iii) (Call for tenders) and 43 (Criteria for decisions).
s 174 153 s 175
Petroleum and Gas (Production and Safety) Bill 2004
(3) The matters that may be considered in making the division include 1
the development plan for the original lease, the proposed later development 2
plans and the capability criteria. 3
(4) The Minister may, as a condition of making the division, require the 4
applicant to, under section 488,211 to give security or additional security for 5
all or any of the new leases within a stated reasonable period. 6
(5) If the applicant does not comply with the requirement, the division 7
may be refused. 8
174 Provisions of new leases 9
(1) Subject to this section, section 123 applies for the provisions of a 10
new lease as if it were a petroleum lease granted under division 2.212 11
(2) However, the term of each new lease must not end later than the end 12
of the term of the original lease. 13
(3) For any relinquishment condition for the new leases-- 14
(a) the new leases are taken to have originally taken effect when the 15
original lease originally took effect; and 16
(b) land within any sub-block that the original lease states is 17
included in the area of the original lease is divided rateably 18
between the new leases; and 19
(c) for working out previous relinquishments that are counted for the 20
relinquishment condition for each new lease, the relinquishments 21
previously counted for the relinquishment condition for the 22
original lease are divided rateably between the new leases. 23
175 Steps after deciding application 24
(1) After the provisions of the new leases are decided, the applicant and 25
anyone else who will be a holder of any new lease, must be given notice of 26
the relevant provisions and development plans.213 27
211 Section 488 (Power to require security for petroleum authority)
212 Section 123 (Provisions of petroleum lease)
Division 2 (Transition from authority to prospect to petroleum lease)
213 For noncompliance action started, or that could have been taken, against the original
lease holder, see section 792 (Provision for divided petroleum tenures).
s 176 154 s 177
Petroleum and Gas (Production and Safety) Bill 2004
(2) On refusal to make the division, the applicant must be given notice of 1
the refusal. 2
PART 3--DATA ACQUISITION AUTHORITIES 3
Division 1--Obtaining data acquisition authority 4
176 Who may apply for data acquisition authority 5
(1) A petroleum tenure holder may apply for a data acquisition authority 6
to allow the applicant to carry out the following activities ("data 7
acquisition activities")-- 8
(a) geophysical surveys on land (the "data acquisition land") 9
contiguous to land in the area of the tenure to enable the 10
applicant to acquire data relevant to authorised activities under 11
the tenure; 12
(b) the entering of the data acquisition land to carry out the 13
geophysical surveys. 14
(2) However, the application can not be made or granted for land in the 15
area of another petroleum tenure. 16
177 Requirements for making application 17
The application must be-- 18
(a) in the approved form; and 19
(b) lodged at-- 20
(i) the office of the department for lodging data acquisition 21
authority applications, as stated in a gazette notice by the 22
chief executive; or 23
(ii) if no office is gazetted under subparagraph (i)--the office 24
stated in the approved form; or 25
(iii) otherwise--the office of the chief executive; and 26
(c) accompanied by the fee prescribed under a regulation. 27
s 178 155 s 179
Petroleum and Gas (Production and Safety) Bill 2004
178 Deciding application for data acquisition authority 1
(1) The Minister may grant or refuse the data acquisition authority. 2
(2) However, the data acquisition authority can not be granted unless a 3
relevant environmental authority for the data acquisition authority has been 4
issued. 5
(3) The authority must state its term and the area subject to the authority. 6
(4) The term must end no later than 1 year after the authority takes effect. 7
(5) The authority may also state-- 8
(a) conditions or other provisions of the authority, other than 9
conditions or provisions that are-- 10
(i) inconsistent with section 180 or 181 or any other mandatory 11
condition for data acquisition authorities; or 12
13
Note--
14
Chapter 5 also imposes mandatory conditions on data acquisition
15
authorities. In particular, see chapter 5, part 8.214
(ii) inconsistent with a condition of the petroleum tenure to 16
which the authority relates; or 17
(iii) the same as, or substantially the same as, or inconsistent 18
with, any relevant environmental condition for the authority; 19
and 20
(b) the day it takes effect. 21
(6) However, the provisions of the authority may exclude or restrict the 22
carrying out of data acquisition activities. 23
179 Notice of refusal 24
On refusal of the application, the applicant must be given notice of the 25
decision to refuse.215 26
214 Chapter 5, part 8 (General provisions for conditions and related provisions)
215 See also the Judicial Review Act 1991, section 32 (Request for statement of
reasons).
s 180 156 s 181
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Provisions for data acquisition authorities216 1
180 Key authorised activities 2
(1) A data acquisition authority authorises its holder to carry out data 3
acquisition activities in the area of the authority. 4
(2) The authorised activities may be carried out despite the rights of an 5
owner or occupier of land on which they are exercised. 6
(3) However, the carrying out of the data acquisition activities is subject 7
to-- 8
(a) section 6; and 9
(b) chapter 3, part 4, division 2; and 10
(c) chapter 5; and 11
(d) the mandatory and other conditions of the authority; and 12
(e) any exclusion or restriction provided for in the authority on the 13
carrying out of the activities.217 14
181 Additional condition of relevant petroleum tenure 15
If a condition is imposed on a data acquisition authority (the "authority 16
condition"), it is a condition of the petroleum tenure to which the authority 17
relates that the tenure holder must comply with the authority condition. 18
19
Note--
20
Chapter 5 also imposes mandatory conditions on data acquisition authorities. In
21
particular, see chapter 5, part 2, division 3 and chapter 5, part 8.218
216 See also chapter 5 (Common petroleum authority provisions).
217 Section 6 (Relationship with Mineral Resources Act)
Chapter 3 (Provisions for coal seam gas), part 4, division 2 (Restriction on
authorised activities on coal mining lease or oil shale mining lease land)
Chapter 5 (Common petroleum authority provisions)
218 Chapter 5, part 2, division 3 (Access to private land outside area of petroleum
authority) and part 8 (General provisions for conditions and authorised activities)
s 182 157 s 184
Petroleum and Gas (Production and Safety) Bill 2004
182 Authority holder is the relevant petroleum tenure holder from 1
time to time 2
The holder of a data acquisition authority is taken to be the person who, 3
from time to time, holds the petroleum tenure to which the authority 4
relates. 5
183 Authority ends if relevant petroleum tenure ends 6
A data acquisition authority ends if the petroleum tenure to which it 7
relates ends. 8
184 Relationship with subsequent petroleum tenure 9
(1) This section applies if a petroleum tenure is granted over land in the 10
area of a data acquisition authority 11
(2) The grant does not limit the authority or its term. 12
(3) However, an authorised activity for the authority may be carried out 13
on the land only if-- 14
(a) carrying out the activity does not adversely affect the carrying 15
out of an authorised activity for the tenure; or 16
(b) the agreement conditions have been complied with. 17
(4) In this section-- 18
"agreement conditions" means that-- 19
(a) the tenure holder has agreed in writing to the carrying out of the 20
activity; and 21
(b) a copy of the agreement has been lodged at-- 22
(i) the office of the department for lodging the agreement, as 23
stated in a gazette notice by the chief executive; or 24
(ii) if no office is gazetted under subparagraph (i)--the office of 25
the chief executive; and 26
(c) the agreement is still in force. 27
s 185 158 s 185
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--WATER RIGHTS FOR PETROLEUM 1
TENURES 2
185 Underground water rights 3
(1) A petroleum tenure holder may do any of the following in relation to 4
underground water in the area of the tenure-- 5
(a) take or interfere with the water if taking or interference happens 6
during the course of, or results from, the carrying out of another 7
authorised activity for the tenure; 8
9
Examples--
10
1. Underground water necessarily or unavoidably taken during the
11
drilling of a petroleum well or water observation bore.
12
2. Underground water necessarily or unavoidably taken during petroleum
13
production authorised under section 32 or 109.219
(b) use water mentioned in paragraph (a) for carrying out of another 14
authorised activity for the tenure; 15
(c) take or interfere with the water for use in the carrying out of 16
another authorised activity for the tenure.220 17
(2) The rights under subsection (1) are the "underground water rights" 18
for the petroleum tenure. 19
(3) There is no limit to the volume of water that may be taken under the 20
underground water rights. 21
(4) Underground water taken or interfered with, under subsection (1)(a), 22
from a petroleum well is "associated water". 23
(5) The tenure holder may use associated water only for an another 24
authorised activity for the tenure. 25
219 Section 32 (Exploration and testing) or 109 (Exploration, production and storage
activities)
220 Part 1, division 1 and part 2, division 1 (Key authorised activities)
s 186 159 s 187
Petroleum and Gas (Production and Safety) Bill 2004
1
Note--
2
If the tenure holder wishes to use associated water for another purpose, the holder must
3
obtain a water licence. See sections 188 and 189 and the Water Act, section 19. To
4
obtain a water licence see the Water Act, chapter 2, part 6.221
(6) The taking or interference with water under subsection (1)(c) may be 5
carried out by drilling a bore. 6
(7) The bore and its casing, wellhead and any other works constructed in 7
connection with it is a "water supply bore". 8
(8) In this section-- 9
"another authorised activity", for the petroleum tenure, means an 10
authorised activity for the tenure under part 1, division 1 or part 2, 11
division 1. 12
186 Right to allow use of associated water for domestic or stock 13
purposes 14
A petroleum tenure holder may allow an owner or occupier of any of the 15
following land to use, on that land, associated water taken by the tenure 16
holder for domestic purposes or stock purposes-- 17
(a) land in the area of the tenure; 18
(b) land that-- 19
(i) joins land in the area of the tenure; and 20
(ii) is owned by the same person.222 21
187 Water monitoring activities 22
(1) A petroleum tenure holder may carry out any of the following 23
activities in the area of the tenure to comply with, or assess the need to 24
comply with, the make good obligation for the tenure-- 25
(a) gathering information about, or auditing, an existing Water Act 26
bore; 27
221 Sections 188 (Authorisation for Water Act) and 189 (Water Act not otherwise
affected). Water Act section 19 (Rights in all water vests in State) and chapter 2,
part 6 (Water licences and permits)
222 For taking of associated water for other purposes, see the Water Act, chapter 2,
part 6 (Water licences and permits).
s 188 160 s 189
Petroleum and Gas (Production and Safety) Bill 2004
(b) gathering information for an underground water impact report, 1
pre-closure report, monitoring report or review report; 2
(c) monitoring the effect of the exercise of the underground water 3
rights for the tenure; 4
(d) constructing or plugging and abandoning a water observation 5
bore; 6
(e) carrying out restoration measures in relation to an existing Water 7
Act bore for which the make good obligation applies. 8
(2) An activity authorised under this section is a "water monitoring 9
activity". 10
188 Authorisation for Water Act 11
For the Water Act, the following are taken to be authorised-- 12
(a) the taking or interference with or the use of water, under the 13
underground water rights; 14
(b) the use, under section 186, of associated water.223 15
189 Water Act not otherwise affected 16
To remove any doubt, it is declared that a petroleum tenure holder can 17
not take or interfere with or use water as defined under the Water Act unless 18
the taking or interference or use is authorised under this part or the Water 19
Act.224 20
223 See the Water Act, section 808 (Unauthorised taking, supplying or interfering with
water).
224 See Water Act, sections 20 (Authorised taking of water without water entitlement)
and 808 (Unauthorised taking, supplying or interfering with water).
s 190 161 s 192
Petroleum and Gas (Production and Safety) Bill 2004
PART 5--WATER MONITORING AUTHORITIES 1
Division 1--Obtaining water monitoring authority 2
190 Who may apply for water monitoring authority 3
(1) A petroleum tenure holder may apply for a water monitoring 4
authority for stated land to allow the holder to comply with, or assess the 5
need to comply with, the make good obligation for the tenure. 6
(2) The application may be made or granted for-- 7
(a) land in the area of another petroleum authority; and 8
(b) 1 or more petroleum tenures held by the same applicant. 9
191 Requirements for making application 10
The application must be-- 11
(a) in the approved form; and 12
(b) lodged at-- 13
(i) the office of the department for lodging water monitoring 14
authority applications, as stated in a gazette notice by the 15
chief executive; or 16
(ii) if no office is gazetted under subparagraph (i)--the office 17
stated in the approved form; or 18
(iii) otherwise--the office of the chief executive; and 19
(c) accompanied by the fee prescribed under a regulation. 20
192 Deciding application for water monitoring authority 21
(1) The Minister may grant or refuse the water monitoring authority. 22
(2) However, the water monitoring authority must not be granted unless 23
a relevant environmental authority for the water monitoring authority has 24
been issued. 25
(3) The authority must state its area and each petroleum tenure to which 26
it relates. 27
(4) The authority may also state-- 28
s 193 162 s 193
Petroleum and Gas (Production and Safety) Bill 2004
(a) conditions or other provisions of the authority, other than 1
conditions or provisions that are-- 2
(i) inconsistent with division 2 or section 202225 or any other 3
mandatory condition for water monitoring authorities; or 4
5
Note--
6
Chapter 5 also imposes mandatory conditions on water monitoring
7
authorities. In particular, see chapter 5, part 8.226
(ii) inconsistent with a condition of any petroleum tenure to 8
which the authority relates; or 9
(iii) the same as, or substantially the same as, or inconsistent 10
with, any relevant environmental condition for the authority; 11
and 12
(b) the day it takes effect. 13
(5) However, the provisions of the authority may exclude or restrict the 14
carrying out of water monitoring activities. 15
Division 2--Key authorised activities 16
193 Operation of div 2 17
(1) This division provides for the key authorised activities for a water 18
monitoring authority.227 19
(2) The authorised activities may be carried out despite the rights of an 20
owner or occupier of land on which they are exercised. 21
(3) However, the carrying out of the authorised activities is subject to-- 22
(a) sections 6, 197 and 198; and 23
(b) chapter 3, part 4, division 2; and 24
(c) chapter 5; and 25
(d) the mandatory and other conditions of the authority; and 26
225 Section 202 (Additional condition of relevant petroleum tenure)
226 Chapter 5, part 8 (General provisions for conditions and authorised activities)
227 For other authorised activities, see chapter 5, part 2, division 3 (Access to private
land outside area of petroleum authority) and part 8 (General provisions for
conditions and authorised activities).
s 194 163 s 197
Petroleum and Gas (Production and Safety) Bill 2004
(e) any exclusion or restriction provided for in the authority on the 1
carrying out of the activities.228 2
194 Water monitoring activities 3
The authority holder may carry out any water monitoring activity in the 4
area of the authority. 5
195 Limited right to take or interfere with underground water 6
The authority holder may take or interfere with underground water only 7
to the extent that the taking or interference is the unavoidable result of 8
carrying out a water monitoring activity in the area of the authority. 9
10
Example--
11
The taking of or interference with underground water during the drilling or
12
maintenance of a water observation bore in the area.
196 Authorisation for Water Act 13
For the Water Act, the taking of or interference with underground water, 14
under section 195, is taken to be authorised.229 15
197 Water Act not otherwise affected 16
To remove any doubt, it is declared that the water monitoring authority 17
holder can not take or interfere with water as defined under the Water Act 18
unless the taking or interference is authorised under this subdivision or the 19
Water Act.230 20
228 Section 6 (Relationship with Mineral Resources Act)
Chapter 3 (Provisions for coal seam gas), part 4, division 2 (Restriction on
authorised activities on coal mining lease or oil shale mining lease land)
Chapter 5 (Common petroleum authority provisions)
229 See the Water Act, section 808 (Unauthorised taking, supplying or interfering with
water).
230 See Water Act, sections 20 (Authorised taking of water without water entitlement)
and 808 (Unauthorised taking, supplying or interfering with water).
s 198 164 s 202
Petroleum and Gas (Production and Safety) Bill 2004
198 Restriction on carrying out authorised activities 1
In carrying out an authorised activity for the water monitoring authority, 2
the holder must not interfere with the carrying out of an authorised activity 3
for a petroleum tenure, or of another water monitoring authority, the area of 4
which includes the area of the area of the authority. 5
Maximum penalty--1 000 penalty units. 6
199 No right to petroleum discovered 7
To remove any doubt, it is declared that the discovery of petroleum while 8
carrying out an authorised activity for the authority does not, of itself, give 9
the authority holder a right to the petroleum. 10
Division 3--Miscellaneous provisions 11
200 Term of authority 12
Subject to chapter 10, part 2, division 4,231 a water monitoring authority 13
continues in force until there is no longer any petroleum tenure to which 14
the authority relates. 15
201 Provision for who is the authority holder if only 1 related 16
petroleum tenure 17
(1) This section applies if there is only 1 petroleum tenure to which a 18
water monitoring authority relates. 19
(2) The authority holder is taken to be the person who, from time to time, 20
holds the petroleum tenure to which the authority relates. 21
202 Additional condition of relevant petroleum tenure 22
If a condition is imposed on a water monitoring authority (the 23
"authority condition"), it is a condition of each petroleum tenure to which 24
the authority relates that the tenure holder must comply with the authority 25
condition. 26
231 Chapter 10, part 2, division 4 (Noncompliance procedure for all authorities under
Act)
s 203 165 s 203
Petroleum and Gas (Production and Safety) Bill 2004
203 Amending water monitoring authority by application 1
(1) The holder of a water monitoring authority may apply to amend it-- 2
(a) to increase or decrease its area; or 3
(b) to add or omit, or reflect an amendment of, a petroleum tenure 4
that relates to the authority. 5
(2) The holder can not apply to amend the authority in any other way. 6
(3) The application must be-- 7
(a) in the approved form; and 8
(b) lodged at-- 9
(i) the office of the department for lodging the application, as 10
stated in a gazette notice by the chief executive; or 11
(ii) if no office is gazetted under subparagraph (i)--the office 12
stated in the approved form; or 13
(iii) otherwise--the office of the chief executive; and 14
(c) accompanied by the fee prescribed under a regulation. 15
(4) The Minister may grant or refuse the amendment. 16
(5) The amendment may be granted (a "conditional grant") subject to 17
the applicant's written agreement to the Minister amending the authority in 18
a stated way that the Minister considers appropriate.232 19
(6) On refusal of the application or the making of a decision to make a 20
conditional grant, the applicant must be given an information notice about 21
the decision to refuse or to make the conditional grant. 22
232 See section 848 (Power to correct or amend).
See also chapter 5, part 1 (Security).
s 204 166 s 205
Petroleum and Gas (Production and Safety) Bill 2004
PART 6--THIRD PARTY STORAGE ACCESS TO 1
NATURAL UNDERGROUND RESERVOIRS 2
Division 1--Purpose of part 3
204 Purpose of pt 6 4
The purpose of this part is for the State to encourage appropriate use of 5
natural underground reservoirs for storage. 6
Division 2--Storage agreements and related provisions 7
Subdivision 1--Storage agreements 8
205 Meaning of "storage agreement" and "existing user" 9
(1) A petroleum lease holder may agree (a "storage agreement") with 10
someone else (an "existing user") to use a natural underground reservoir 11
in the area of the lease to store petroleum or a prescribed storage gas.233 12
(2) However, the lease holder can not enter into a storage agreement for 13
any of the reservoir's storage capacity already agreed to be provided under 14
another storage agreement. 15
(3) The existing user may agree with someone else to store petroleum or 16
a prescribed storage gas in the reservoir to the extent of its storage capacity 17
agreed to be used under the existing user's storage agreement with the lease 18
holder. 19
(4) However, the existing user may make the agreement only if it 20
complies with the storage agreement between the lease holder and the 21
existing user. 22
(5) An agreement under subsection (3) is also a "storage agreement". 23
(6) A person for whom petroleum or a prescribed storage gas is, or is 24
entitled to be, stored under a storage agreement under subsection (3) is also 25
an "existing user" of the reservoir. 26
233 See also section 220 (Preferred tender may make storage agreements).
s 206 167 s 208
Petroleum and Gas (Production and Safety) Bill 2004
206 Development plan overrides storage agreement 1
If a provision of a storage agreement conflicts with the development plan 2
for the relevant petroleum lease, the development plan prevails to the extent 3
of the inconsistency. 4
207 Existing user's obligation to give information 5
Each existing user of a natural underground reservoir in the area of a 6
petroleum lease must give the lease holder the information the holder 7
reasonably requires for the safe and reliable use of the reservoir. 8
Maximum penalty--500 penalty units. 9
Subdivision 2--Negotiation obligations of petroleum lease holders 10
and existing users 11
208 Application of sdiv 2 12
(1) This subdivision applies to a petroleum lease holder or an existing 13
user who has available storage capacity for a natural underground reservoir. 14
(2) A petroleum lease holder has "available storage capacity" for a 15
natural underground reservoir if the reservoir is in the area of the lease and 16
it has, or is likely to have, storage capacity that-- 17
(a) the lease holder has not already agreed to provide under a storage 18
agreement that is in force (the "contracted capacity"); and 19
(b) does not interfere with the carrying out of authorised activities 20
for the lease; and 21
(c) is either-- 22
(i) spare; or 23
(ii) would, if additions of plant were made, or works carried out 24
to increase the reservoir's storage capacity, be spare;234 and 25
(d) is technically and practicably feasible, safe and reliable to use. 26
(3) However, the contracted capacity, or a part of the contracted capacity, 27
becomes available storage capacity again if-- 28
234 Storage capacity mentioned in subparagraph (ii) is commonly called `developable
capacity'.
s 209 168 s 210
Petroleum and Gas (Production and Safety) Bill 2004
(a) the existing user of the reservoir gives the lease holder a notice 1
stating the user no longer requires that capacity; and 2
(b) the contracted capacity would otherwise be available storage 3
capacity under subsection (2). 4
(4) A notice under subsection (3)(a) may be given for all or a stated part 5
of the contracted capacity. 6
(5) An existing user of a natural underground reservoir has "available 7
storage capacity" if the reservoir has, or is likely to have, storage capacity 8
agreed to be provided to the existing user under a storage agreement that 9
the existing user is not using and does not expect to use. 10
209 Obligation to negotiate with proposed users 11
(1) A person (a "proposed user") may give the lease holder or existing 12
user a notice requiring the holder or existing user to, within a stated 13
reasonable time, start negotiations to attempt to reach a storage agreement 14
for available storage capacity for the reservoir. 15
(2) Subject to section 210, the holder or existing user must negotiate in 16
good faith with the proposed user to attempt to reach a fair and reasonable 17
storage agreement with the proposed user. 18
Maximum penalty for subsection (2)--500 penalty units. 19
210 Obligation about priority for proposed users 20
(1) If-- 21
(a) a petroleum lease holder or existing user has started negotiations 22
mentioned in section 209(2) (the "first negotiations") with a 23
proposed user; and 24
(b) after the start of the first negotiations, the lease holder or existing 25
user starts negotiations mentioned in section 209(2) (the "second 26
negotiations") with another proposed user; and 27
(c) the first negotiations have not ended; 28
the lease holder or existing user must, as far as practicable, ensure the first 29
negotiations are not unreasonably affected by the second negotiations. 30
Maximum penalty--500 penalty units. 31
s 211 169 s 211
Petroleum and Gas (Production and Safety) Bill 2004
(2) Despite subsection (1), the existing user has priority to negotiate for 1
the storage capacity of the reservoir that will, when the storage agreement 2
by the lease holder (the "existing agreement") ends, be available storage 3
capacity for the lease holder. 4
(3) However, the priority under subsection (2)-- 5
(a) applies only to the extent the storage capacity sought is no more 6
than the existing user's entitlement under the existing agreement 7
in the last year before it is to end according to its provisions; and 8
(b) ceases 2 years before the existing agreement ends. 9
211 Obligation to give information 10
(1) A proposed user may ask the lease holder or existing user for all 11
information that-- 12
(a) the lease holder or existing user has about the lease holder's or 13
existing user's available storage capacity for the reservoir; and 14
(b) is reasonably necessary to allow the proposed user to negotiate a 15
fair and reasonable storage agreement with the lease holder or 16
existing user. 17
18
Examples of possible information about available storage capacity--
19
the amount of the storage capacity and details of the nature and quality of gas already
20
stored in the reservoir
(2) The lease holder or existing user must-- 21
(a) give the information within a reasonable period after receiving 22
the request; and 23
(b) if the information has been sought by, or given to another 24
proposed user--ensure it is given on a non-discriminatory basis. 25
Maximum penalty--500 penalty units. 26
(3) For subsection (2)(b), information is given on a non-discriminatory 27
basis if it is-- 28
(a) the same, or substantially the same, information as that given to 29
other proposed users; or 30
(b) not so different from information given to other proposed users 31
as to disadvantage the proposed user. 32
s 212 170 s 213
Petroleum and Gas (Production and Safety) Bill 2004
(4) For subsection (3)(a), if the reservoir's available storage capacity has 1
changed since someone else was given the information, the information 2
given to the proposed user is taken to be substantially the same if, other 3
than for differences that reflect the change, it is the same or substantially 4
the same. 5
Division 3--Provisions for stored petroleum or prescribed storage gas 6
after petroleum lease ends 7
Subdivision 1--Preliminary 8
212 Application of div 3 9
(1) This division applies if-- 10
(a) a petroleum lease (the "old lease") ends; and 11
(b) a natural underground reservoir in the area of the old lease is, 12
under a storage agreement, being used to store petroleum or a 13
prescribed storage gas. 14
(2) For subsection (1)(a), if an application has been made to renew the 15
old lease and the application is refused, the old lease does not end until the 16
refusal takes effect.235 17
(3) Subsection (1) applies even if the storage agreement has, under its 18
own terms, ceased to have effect. 19
Subdivision 2--Claiming stored petroleum or prescribed storage gas 20
213 Notice to claim for stored petroleum or prescribed storage gas 21
(1) The Minister must by gazette notice, invite anyone who claims 22
ownership of the stored petroleum or prescribed storage gas to make that 23
claim by giving a notice that complies with subsection (2) (a "notice of 24
claim"). 25
(2) A notice of claim must-- 26
235 See section 167 (When refusal takes effect).
s 214 171 s 215
Petroleum and Gas (Production and Safety) Bill 2004
(a) be lodged at the following office within 30 business days after 1
the gazettal-- 2
(i) the office of the department for lodging notices of claim, as 3
stated in a gazette notice by the chief executive; 4
(ii) if no office is gazetted under subparagraph (i)--the office of 5
the chief executive; and 6
(b) state details, and include evidence of, each of the following-- 7
(i) any relevant storage agreement; 8
(ii) how the claimant became the owner of the stored petroleum 9
or prescribed storage gas; 10
(iii) how much of the stored petroleum or prescribed storage gas 11
is claimed; 12
(iv) steps taken by the claimant to recover the stored petroleum 13
or prescribed storage gas during the term of the old lease; 14
and 15
(c) be accompanied by the fee for deciding the claim, as prescribed 16
under a regulation. 17
214 Property in stored petroleum or prescribed storage gas if no 18
notice of claim 19
If no notice of claim is lodged within the 30 business days, the stored 20
petroleum and prescribed storage gas is taken to have become the property 21
of the State immediately after the old lease ended.236 22
Subdivision 3--Deciding claims 23
215 Deciding claims 24
(1) This section applies if within the 30 business days, a notice of claim 25
is lodged. 26
236 For property in other petroleum in the reservoir, see section 26 (Petroleum the
property of the State).
s 216 172 s 217
Petroleum and Gas (Production and Safety) Bill 2004
(2) The Minister must decide whether, immediately before the old lease 1
ended, the claimant owned any of the stored petroleum or prescribed 2
storage gas. 3
(3) The Minister may decide that the claimant does not own any of the 4
stored petroleum or prescribed storage gas if the Minister considers the 5
claimant did not take reasonable steps to recover it during the term of the 6
old lease. 7
(4) Subsection (3) applies even if the Minister would, other than for the 8
subsection, have decided that the claimant owned the stored petroleum or 9
prescribed storage gas immediately before the old lease ended. 10
(5) If it is decided that the claimant owns any of the stored petroleum or 11
prescribed storage gas, the claimant is taken to have been its owner from 12
when the old lease ended. 13
(6) On deciding a claimant does not own any the stored petroleum or 14
prescribed storage gas claimed, the claimant must be given an information 15
notice about the decision. 16
216 State property in stored petroleum or prescribed storage gas to 17
extent claims are not upheld 18
(1) If, under section 215, it is decided that no claimant owned any of the 19
stored petroleum or prescribed storage gas, the gas is taken to have become 20
the property of the State immediately after the old lease ended. 21
(2) If, under section 215, it is decided that no claimant owned part of the 22
stored petroleum or prescribed storage gas, that part is taken to have 23
become the property of the State immediately after the old lease ended. 24
Subdivision 4--Dealing with upheld claims 25
217 Application of sdiv 4 26
This subdivision applies if, under section 215, it is decided any claimant 27
owns any of the stored petroleum or prescribed storage gas. 28
s 218 173 s 219
Petroleum and Gas (Production and Safety) Bill 2004
218 Call for tenders required 1
The Minister must make a call for tenders under section 127237 for a 2
proposed petroleum lease the area of which includes the reservoir. 3
219 Requirement to notify change in ownership 4
(1) If the claimant ceases to own any of the stored petroleum or 5
prescribed storage gas, the claimant must lodge at the relevant office a 6
notice stating-- 7
(a) the name and contact details of any new owner of the stored 8
petroleum or prescribed storage gas; and 9
(b) how much of the stored petroleum or prescribed storage gas the 10
new owner became the owner of. 11
(2) If the new owner, or any one who subsequently acquires any of the 12
stored petroleum or prescribed storage gas, ceases to own any of the stored 13
petroleum or prescribed storage gas, the new owner or other person must 14
lodge a notice under subsection (1) at the relevant office. 15
(3) This section does not apply or ceases to apply if-- 16
(a) the petroleum or prescribed storage gas ceases to be stored in the 17
reservoir; or 18
(b) the claimant or any new owner is granted a petroleum lease the 19
area of which includes the reservoir; or 20
(c) a storage agreement is made for the stored petroleum or 21
prescribed storage gas to which agreement the claimant or any 22
new owner is a party; or 23
(d) under section 226,238 the stored petroleum or prescribed storage 24
gas becomes the property of the State. 25
(4) In this section-- 26
"relevant office" means-- 27
(a) the office of the department for lodging notice of change of 28
ownership, as stated in a gazette notice by the chief executive; or 29
237 Section 127 (Call for tenders)
238 Section 226 (State property in stored petroleum or prescribed storage gas in
particular circumstances)
s 220 174 s 222
Petroleum and Gas (Production and Safety) Bill 2004
(b) if no office is gazetted under paragraph (a)--the office of the 1
chief executive. 2
220 Preferred tender may make storage agreements 3
(1) A preferred tenderer appointed for the call for tenders may enter239
4
into a storage agreement with the following person, as if the preferred 5
tenderer held the petroleum lease and the lease has taken effect-- 6
(a) if no notices have been lodged under section 219--the claimant; 7
(b) if any notice has been lodged under section 219--any person 8
who, according notices lodged under that section, owns the 9
stored petroleum or prescribed storage gas. 10
(2) A person with whom the preferred tenderer may, under 11
subsection (1), enter into a storage agreement is a "current owner" of the 12
stored petroleum or prescribed storage gas. 13
221 Negotiation notice 14
(1) This section applies if, as a result of the call for tenders, a petroleum 15
lease (a "non-owner lease") is granted to someone other than a current 16
owner of the stored petroleum or prescribed storage gas. 17
(2) The Minister must-- 18
(a) give each current owner of the stored petroleum or prescribed 19
storage gas a notice (a "negotiation notice") stating-- 20
(i) who holds the non-owner lease; and 21
(ii) a period within which all current owners of the stored 22
petroleum or prescribed storage gas have to reach a storage 23
agreement with the holder; and 24
(b) give the holder a copy of the negotiation notice. 25
222 Obligation of holder to negotiate with current owners 26
On the giving of the negotiation notice to the non-owner lease holder, the 27
holder must, in good faith, negotiate with all current owners of the stored 28
239 For the power to appoint a preferred tenderer, see section 130 (Process for deciding
tenders).
s 223 175 s 224
Petroleum and Gas (Production and Safety) Bill 2004
petroleum or prescribed storage gas to attempt to reach a fair and 1
reasonable storage agreement with them. 2
223 Taking of effect of non-owner lease 3
(1) This section applies despite section 123240 and any provision of a 4
non-owner lease.241 5
(2) The non-owner lease does not take effect until the day of effect fixed 6
by the Minister, as notified to its holder. 7
(3) The Minister must not fix the day of effect unless-- 8
(a) the holder has, at the following office (the "relevant office"), 9
lodged a notice stating that the holder has entered into a storage 10
agreement with any current owner of stored petroleum or 11
prescribed storage gas-- 12
(i) the office of the department for notices of entry into a 13
storage agreement, as stated in a gazette notice by the chief 14
executive; 15
(ii) if no office is gazetted under subparagraph (i)--the office of 16
the chief executive; or 17
(b) all current owners of the stored petroleum or prescribed storage 18
gas have, at the relevant office, lodged a notice relinquishing 19
their ownership of any of the stored petroleum or prescribed 20
storage gas (an "ownership relinquishment notice"); or 21
(c) the period stated in the negotiation notice has ended and the 22
Minister is satisfied the holder has complied with section 222. 23
224 Cancellation of non-owner lease in particular circumstances 24
Subject to section 225, the non-owner lease is cancelled and is taken 25
never to have had any effect if the Minister has not fixed the day of effect 26
before the last of the following days-- 27
(a) the day of the first anniversary of the grant of the non-owner 28
lease; 29
(b) a later day stated in the non-owner lease. 30
240 Section 123 (Provisions of petroleum lease)
241 See section 133 (Provisions of petroleum lease).
s 225 176 s 227
Petroleum and Gas (Production and Safety) Bill 2004
225 Annual rent for non-owner lease 1
(1) This section applies despite section 155242 or any provision of the 2
non-owner lease. 3
(2) Annual rent under section 155 for a non-owner lease is payable from 4
granting of the lease. 5
(3) If, under section 224, the non-owner lease is cancelled the rent is still 6
payable from the grant until it was cancelled. 7
226 State property in stored petroleum or prescribed storage gas in 8
particular circumstances 9
Any of the stored petroleum or prescribed gas that a current owner owns 10
becomes the property of the State-- 11
(a) if the current owner gives an ownership relinquishment notice for 12
it; or 13
(b) on the fifth anniversary of the making of the decision under 14
section 215,243 unless, before that anniversary-- 15
(i) a petroleum lease the area of which includes the reservoir is 16
granted; and 17
(ii) the lease takes effect. 18
227 Storage rent payable by current owner 19
(1) Each person who is a current owner of any of the stored petroleum or 20
prescribed storage gas must pay the State rent for storing the amount of the 21
stored petroleum or prescribed storage gas that the current owner owns 22
from time to time. 23
(2) The rent is payable from when the person became the current owner 24
of the stored petroleum or prescribed storage gas until the earlier of the 25
following events to happen-- 26
(a) the person ceases to be the current owner of that amount; 27
(b) the taking effect of a petroleum lease the area of which includes 28
the reservoir; 29
242 Section 155 (Petroleum royalty and annual rent)
243 Section 215 (Deciding claims)
s 228 177 s 228
Petroleum and Gas (Production and Safety) Bill 2004
(c) under section 226, the stored petroleum or prescribed storage gas 1
becomes the property of the State. 2
(3) The rent must be paid at the rate and in the way prescribed under a 3
regulation. 4
Division 4--Regulatory provisions 5
228 Prohibition on actions preventing access 6
(1) A person must not engage in conduct for the purpose of preventing 7
someone else from obtaining the use of a natural underground reservoir 8
with available storage capacity in the area of a petroleum lease for 9
petroleum storage. 10
Maximum penalty--500 penalty units. 11
(2) For subsection (1)-- 12
(a) a person engages in conduct for a particular purpose if-- 13
(i) the conduct is or was engaged in for the purpose or for a 14
purpose including the purpose; and 15
(ii) the purpose is or was not an incidental or unintended 16
consequence of the conduct engaged in; and 17
(b) a person may be found to have engaged in conduct for a purpose 18
even though, after all the evidence has been considered, the 19
existence of the purpose is ascertainable only by inference from 20
the conduct of the person or of someone else or from other 21
relevant circumstances. 22
(3) Subsection (2)(b) does not limit the way the purpose of a person may 23
be established for subsection (1). 24
(4) In this section-- 25
"engage", in conduct, means doing, or refusing to do, an act. 26
27
Examples of engaging in conduct--
28
· refusing to supply a service
29
· without reasonable grounds, limiting or disrupting a service
30
· making, or giving effect to, a provision of an understanding
31
· requiring the giving of, or giving, a covenant
s 229 178 s 230
Petroleum and Gas (Production and Safety) Bill 2004
"refusing to do", an act, includes-- 1
(a) refraining, other than inadvertently, from doing the act; or 2
(b) making it known the act will not be done. 3
229 Orders to enforce prohibition on preventing access 4
(1) This section applies if, on application of a person, the District Court 5
is satisfied someone else (the "obstructor") has engaged, is engaging, or 6
proposes to engage, in conduct contrary to section 228. 7
(2) The court may make all or any of the following orders-- 8
(a) an order granting an injunction, on terms the court considers 9
appropriate-- 10
(i) restraining the obstructor from engaging in the conduct; or 11
(ii) if the conduct involves failing to do something--requiring 12
the obstructor to do the thing; 13
(b) an order directing the obstructor to compensate a person for loss 14
or damage suffered by the person because of the conduct; 15
(c) another order the court considers appropriate. 16
(3) The court may make any other order, including an injunction, it 17
considers appropriate against another person involved in the conduct. 18
(4) The grounds on which the court may decide not to make an order 19
under this section include the ground that this part or a relevant storage 20
agreement provides a more appropriate way of dealing with the issue. 21
PART 7--COMMERCIAL VIABILITY ASSESSMENT 22
230 Minister's power to require commercial viability report 23
(1) The Minister may, by notice (a "report requirement"), require a 24
petroleum tenure holder to lodge at the relevant office a written report 25
s 231 179 s 231
Petroleum and Gas (Production and Safety) Bill 2004
(a "commercial viability report") about all or a stated part of its area244 1
if-- 2
(a) the holder is not producing petroleum in the area or stated part; 3
and 4
(b) the Minister is of the opinion that-- 5
(i) it may be commercially viable to produce or store 6
petroleum in the area or stated part; or 7
(ii) it may, within the next 15 years, be commercially viable to 8
produce or store petroleum in the area or stated part.245 9
(2) The notice must state each of the following-- 10
(a) the Minister's opinion under subsection (1)(b)(i) or (ii); 11
(b) the facts and circumstances forming the basis for the opinion; 12
(c) that the Minister requires the holder to give the Minister a 13
commercial viability report about the area; 14
(d) a reasonable period for giving the report. 15
(3) In this section-- 16
"relevant office" means-- 17
(a) the office of the department for lodging the commercial viability 18
report, as stated in a gazette notice by the chief executive; or 19
(b) if no office is gazetted under paragraph (a)--the office of the 20
chief executive. 21
231 Required content of commercial viability report 22
(1) A commercial viability report must do all of the following-- 23
(a) identify each natural underground reservoir in the area the 24
subject of the relevant report requirement; 25
(b) give an estimate of the amount of petroleum in each reservoir; 26
(c) state the standards and procedures used to make the estimate; 27
244 See section 94 (Potential commercial area still part of authority).
245 For the relevance of this period, see part 1, division 6 (Potential commercial areas).
s 232 180 s 232
Petroleum and Gas (Production and Safety) Bill 2004
(d) state whether, in the opinion of the relevant petroleum tenure 1
holder, it is commercially viable to produce or store petroleum in 2
the area; 3
(e) if the holder's opinion is that it is not commercially viable to 4
produce or store petroleum in the area--state whether, in the 5
holder's opinion, it will, within the next 15 years, be 6
commercially viable to produce or store petroleum in the area; 7
(f) give data, and an analysis of the data, that supports each opinion. 8
(2) The supporting data and analysis must include-- 9
(a) technical data relating to the geology of, and natural underground 10
reservoirs in the area; and 11
(b) market and financial data relevant to the opinions. 12
232 Minister's power to obtain independent viability assessment 13
(1) This section applies for a petroleum tenure, whether or not its holder 14
has lodged a commercial viability report about the tenure. 15
(2) The Minister may obtain an independent assessment of the 16
commercial viability of petroleum production or storage in all or part of the 17
the area of the tenure (an "independent viability assessment"). 18
(3) However, before seeking the assessment, the Minister must give the 19
holder a notice stating the following-- 20
(a) that the Minister proposes to obtain the assessment; 21
(b) the Minister's reasons for seeking the assessment; 22
(c) the likely costs of obtaining the assessment; 23
(d) whether the State will, under section 233, seek to recover the 24
costs; 25
(e) that the holder may, within a stated reasonable period, lodge 26
submissions about the proposed assessment at-- 27
(i) the office of the department for lodging the submissions, as 28
stated in a gazette notice by the chief executive; or 29
(ii) if no office is gazetted under subparagraph (i)--the office of 30
the chief executive. 31
(4) Any submissions lodged by the holder within the stated period must 32
be considered. 33
s 233 181 s 234
Petroleum and Gas (Production and Safety) Bill 2004
(5) The Minister must after receiving the assessment, give the holder a 1
copy. 2
233 Costs of independent viability assessment 3
If-- 4
(a) the Minister has incurred costs in obtaining, under section 232, 5
an independent viability assessment about a petroleum tenure; 6
and 7
(b) the notice under section 232 about the assessment stated that the 8
State will seek to recover the costs; and 9
(c) the Minister has given the petroleum tenure holder a notice 10
requiring the holder to pay a reasonable amount for the costs; 11
the holder must pay the State a reasonable amount for the costs. 12
PART 8--PETROLEUM ACTIVITIES COORDINATION 13
234 Arrangement to coordinate petroleum activities 14
(1) The holders of, or persons who propose to obtain, a lease, or an 15
interest in a lease, mentioned in subsection (2) (a "relevant lease") may 16
make an arrangement about any of the following-- 17
(a) the orderly-- 18
(i) production of petroleum from a natural underground 19
reservoir under more than 1 of the leases; or 20
(ii) carrying out of an authorised activity for any of the leases 21
by any party to the arrangement; 22
(b) petroleum production from more than 1 natural underground 23
reservoir under more than 1 of the leases. 24
(2) For subsection (1), the relevant leases are-- 25
(a) 2 or more petroleum leases; or 26
(b) 2 or more 1923 Act leases; or 27
s 234 182 s 234
Petroleum and Gas (Production and Safety) Bill 2004
(c) 1 or more petroleum leases and 1 or more 1923 Act leases, in any 1
combination; or 2
(d) 1 or more mining lease and 1 or more petroleum leases or 1923 3
Act leases, in any combination. 4
5
Note--
6
1. Under the Mineral Resources Act, a coal mining lease holder or oil
7
shale mining lease holder has a limited entitlement to mine and use
8
incidental coal seam gas, which is "petroleum". See section 10 of this
9
Act and the Mineral Resources Act, part 7AA, division 8,
10
subdivision 1.246
11
2. A coordination arrangement may provide for mining or production
12
from coextensive natural underground reservoirs. See section 114 and
13
the Mineral Resources Act, section 318CQ.247
(3) The arrangement may-- 14
(a) subject to section 223, be for any term; and 15
(b) if each holder of a relevant mining or petroleum lease agrees, 16
provide for a matter that is inconsistent with or not provided for 17
under the leases or their conditions; and 18
(c) provide for-- 19
(i) the subleasing to a party to the arrangement or someone else 20
of all or part of the area of a relevant petroleum lease; and 21
(ii) a party to the arrangement to be granted a pipeline licence to 22
transport petroleum or a prescribed storage gas on land 23
subject to the arrangement. 24
(4) A person other than the holder, or proposed holder, of a relevant lease 25
may also be a party to a coordination arrangement. 26
(5) A coordination arrangement has no effect unless it is approved by the 27
Minister under section 236.248 28
(6) In this section-- 29
"authorised activity", for-- 30
246 Section 10 (Meaning of "petroleum")
Mineral Resources Act, part 7AA, division 8 (Additional provisions for coal mining
leases or oil shale mining leases), subdivision 1 (Entitlement to coal seam gas)
247 Section 114 and the Mineral Resources Act, section 318CQ (Coordination
arrangement may be made about mining or production from reservoir)
248 Section 236 (Ministerial approval of proposed coordination arrangement)
s 235 183 s 235
Petroleum and Gas (Production and Safety) Bill 2004
(a) a mining lease, means an activity authorised under the lease or 1
the Mineral Resources Act; and 2
(b) a 1923 Act lease, means an activity authorised under the lease or 3
the 1923 Act. 4
"production" includes mining, extraction, production or release carried 5
out under a mining lease. 6
235 Applying for Ministerial approval of proposed coordination 7
arrangement 8
(1) The parties to a proposed coordination arrangement may jointly 9
apply for approval of the arrangement. 10
(2) The application must be-- 11
(a) written; and 12
(b) lodged at-- 13
(i) the office of the department for lodging applications under 14
this section, as stated in a gazette notice by the chief 15
executive; or 16
(ii) if no office is gazetted under subparagraph (i)--the office of 17
the chief executive; and 18
(c) accompanied by the fee prescribed under a regulation. 19
(3) If the proposed arrangement is inconsistent with the current 20
development plan for a relevant lease, the application must be accompanied 21
by a proposed later development plan for the lease. 22
(4) If the proposed plan is for a relevant mining lease, the plan must 23
comply with the later development plan requirements under the Mineral 24
Resources Act.249 25
(5) If the proposed plan is for a relevant 1923 Act lease, the plan must 26
comply with the later development plan requirements under the 1923 Act. 27
249 See the Mineral Resources Act, section 318ED (Later development plan
requirements).
s 236 184 s 236
Petroleum and Gas (Production and Safety) Bill 2004
236 Ministerial approval of proposed coordination arrangement 1
(1) The Minister may approve the proposed coordination arrangement 2
only if-- 3
(a) the Minister is satisfied-- 4
(i) the arrangement is in the public interest; and 5
(ii) any inconsistency between the arrangement and a condition 6
of a relevant lease and any sublease provided for under the 7
arrangement is appropriate; and 8
(b) for an application required to be accompanied by a proposed 9
later development plan for a relevant lease--the proposed plan 10
has been approved; and 11
(c) the arrangement is consistent with-- 12
(i) the purpose of this Act; and 13
(ii) if any relevant lease is a mining lease--the purposes of 14
chapter 3 and the objectives of the Mineral Resources 15
Act.250 16
(2) Also, if the proposed plan is for a relevant 1923 Act lease, the 17
relevant provisions of that Act apply in relation to the proposed plan. 18
(3) The Minister may refuse to approve a proposed coordination 19
arrangement that provides for a party to the arrangement to be granted a 20
pipeline licence to transport petroleum or a prescribed storage gas on land 21
subject to the arrangement if the Minister considers that-- 22
(a) having regard to the requirements under chapter 4, the pipeline 23
licence would not be granted if the party were to apply for it; or 24
(b) not enough information has been given to decide whether the 25
licence should be granted; or 26
(c) the spatial relationship between the leases is not appropriate for a 27
coordination arrangement. 28
(4) If a relevant lease has not been granted, the approval does not take 29
effect until the lease takes effect. 30
250 See sections 3 (Purpose of Act) and 295 (Main purposes of ch 3) and the Mineral
Resources Act, section 2 (Objectives of Act).
s 237 185 s 240
Petroleum and Gas (Production and Safety) Bill 2004
237 Approval does not confer right to renew 1
To remove any doubt, it is declared that if the term of a coordination 2
arrangement is longer than the current term of any relevant lease, the 3
approval of the arrangement does not impose an obligation or right to 4
renew the lease. 5
238 Subleasing of 1923 Act lease provided for under coordination 6
arrangement 7
On the approval of a coordination arrangement that provides for the 8
subleasing of a 1923 Act lease, the sublease is taken to have been approved, 9
under that Act, as a permitted dealing under that Act. 10
239 Coordination arrangement overrides relevant leases 11
(1) This section applies if there is a conflict between a coordination 12
arrangement and a condition of a relevant lease. 13
(2) The arrangement prevails to the extent of the inconsistency. 14
(3) If a relevant lease holder has complied with the arrangement, the 15
holder is taken to have complied with the condition to the extent that it is 16
inconsistent with the arrangement. 17
(4) This section applies despite another provision of this Act, the 1923 18
Act or the Mineral Resources Act. 19
240 Grant of pipeline licence 20
(1) This section applies if a coordination arrangement provides for a 21
party to the arrangement to be granted a pipeline licence to transport 22
petroleum on land subject to the arrangement. 23
(2) The Minister may, if the party applies under chapter 4, part 2,251 grant 24
the pipeline licence. 25
(3) Section 412252 applies as if the application were a pipeline licence 26
application. 27
251 Chapter 4, part 2 (Pipeline licences)
252 Section 412 (Provisions of licence)
s 241 186 s 242
Petroleum and Gas (Production and Safety) Bill 2004
(4) However, the provisions of the licence must be consistent with the 1
arrangement. 2
241 Amendment or cancellation by parties to arrangement 3
(1) A coordination arrangement may be amended or cancelled by the 4
parties to the arrangement only with the Minister's approval. 5
(2) A purported amendment or cancellation of a coordination 6
arrangement by the parties to it has no effect unless it complies with 7
subsection (1). 8
242 Minister's power to cancel arrangement 9
(1) The Minister may, by complying with subsections (2) and (3), cancel 10
a coordination arrangement. 11
(2) If the Minister proposes to cancel the arrangement, the Minister must 12
give each holder of a relevant lease a notice stating-- 13
(a) that the Minister proposes to cancel the arrangement; and 14
(b) reasons for the proposed cancellation; and 15
(c) that the holder may lodge submissions at the following office 16
within the stated period about the proposed cancellation or the 17
likely impact of the cancellation on the relevant leases-- 18
(i) the office of the department for lodging the submissions, as 19
stated in a gazette notice by the chief executive; 20
(ii) if no office is gazetted under subparagraph (i)--the office of 21
the chief executive. 22
(3) Before cancelling the arrangement, the following must be 23
considered-- 24
(a) any submissions lodged by the holder within the stated period; 25
(b) the likely impact of the cancellation on the relevant leases; 26
(c) the public interest. 27
(4) If it is decided to cancel the arrangement, each of the holders must be 28
given an information notice about the decision. 29
s 243 187 s 244
Petroleum and Gas (Production and Safety) Bill 2004
(5) The cancellation takes effect on the end of the appeal period for the 1
decision to cancel, or if a later day of effect is stated in the information 2
notice, on that day.253 3
(6) When the decision takes effect, the arrangement and the Minister's 4
approval of it cease to have effect. 5
243 Effect of cancellation 6
(1) The cancellation of a former coordination arrangement does not 7
affect any relevant lease. 8
(2) Any sublease of a petroleum lease or a 1923 Act lease provided for 9
under the arrangement is cancelled.254 10
PART 9--EXISTING WATER ACT BORES 11
Division 1--Preliminary 12
244 Simplified outline of pt 9 13
(1) This part imposes an obligation on each petroleum tenure holder to 14
do either of the following because of the exercise of underground water 15
rights for the tenure-- 16
(a) take restoration measures in relation to particular water bores; 17
(b) compensate the owners of particular water bores. 18
(2) Division 2 provides for when the obligation arises. 19
(3) Divisions 3 and 4 provide for the identification of the bores through 20
underground water impact and pre-closure reports required to be lodged by 21
petroleum tenure holders. 22
(4) Division 5 provides for reports by tenure holders to-- 23
(a) monitor the exercise of underground water rights; and 24
253 For the right of appeal and the appeal period, see sections 823 (Who may appeal)
and 824 (Period to appeal). See also section 826 (Stay of operation of decision).
254 For the recording of cancellation, see section 565 (Keeping of register).
s 245 188 s 246
Petroleum and Gas (Production and Safety) Bill 2004
(b) assess and review underground water impact reports. 1
(5) Division 6 provides for agreements for, and for the resolution of 2
disputes about, complying with the obligation. 3
245 What is an "existing Water Act bore" 4
(1) An "existing Water Act bore", for a petroleum tenure, is a water 5
bore as defined under the Water Act if-- 6
(a) the taking of, or interference with, water from the bore is 7
authorised under the Water Act; and 8
(b) if the Integrated Planning Act 1997 required a development 9
approval under that Act in relation to the bore for operational 10
work for the taking of, or interfering with, water under the Water 11
Act--that approval has been granted; and 12
(c) the bore was in existence at the earlier of the following for the 13
tenure-- 14
(i) the start of approved testing for petroleum production; 15
(ii) the start of petroleum production for commercial purposes. 16
(2) A replacement of a bore mentioned in subsection (1) to comply with 17
the make good obligation is also an "existing Water Act bore" for the 18
petroleum tenure. 19
246 When an existing Water Act bore is "unduly affected" 20
(1) An existing Water Act bore is "unduly affected" by the exercise of a 21
petroleum tenure holder's underground water rights if-- 22
(a) the drop in the level of water in the bore because of the exercise 23
of underground water rights for a petroleum tenure is more than 24
the trigger threshold for aquifers in relation to which the rights 25
are exercised; and 26
(b) the bore has an impaired capacity. 27
(2) If the exceeding of the trigger threshold was caused by the combined 28
exercise of underground water rights for more than 1 petroleum tenure, the 29
existing water Act bore is "unduly affected" by the exercise of each of the 30
rights. 31
s 247 189 s 249
Petroleum and Gas (Production and Safety) Bill 2004
247 When an existing Water Act bore has an "impaired capacity" 1
An existing Water Act bore has an "impaired capacity" if-- 2
(a) for a bore used for domestic purposes--it is no longer able to 3
provide a reasonable supply of water for the domestic purpose 4
required at its location; or 5
(b) for a bore used for stock purposes--there is a material reduction 6
in the number of stock able to be watered from the bore, having 7
regard to the stock carrying capacity of the land serviced by the 8
bore; or 9
(c) for a bore from which the taking of or interference with water is 10
authorised under a water licence other than for domestic 11
purposes or stock purposes--there is a material reduction in the 12
pumping supply required to service the relevant enterprise or 13
town water supply. 14
248 What are "restoration measures" 15
"Restoration measures", for an existing Water Act bore, means 16
measures to-- 17
(a) ensure the bore will no longer have an impaired capacity; or 18
(b) provide an alternative supply of water to the supply of water from 19
the bore. 20
21
Examples of possible restoration measures--
22
· deepening the bore
23
· drilling a new bore
24
· providing a supply of an equivalent amount of water of a suitable
25
quality by piping it from an alternative source
249 References to petroleum tenure holder in pt 9 26
(1) This section applies if a petroleum tenure ends. 27
(2) If the tenure was an authority to prospect and, under chapter 2, part 2, 28
division 2,255 the tenure holder became a petroleum lease holder, a 29
reference in this part-- 30
255 Chapter 2, part 2, division 2 (Transition from authority to prospect to petroleum
lease)
s 250 190 s 251
Petroleum and Gas (Production and Safety) Bill 2004
(a) to the petroleum tenure is a reference to the authority to prospect 1
and the petroleum lease; and 2
(b) to the tenure holder includes a reference to the petroleum lease 3
holder. 4
(3) Otherwise, a reference in this part to the tenure holder includes a 5
reference to the holder of tenure immediately before it ended. 6
Division 2--Obligation to make good for existing Water Act bores 7
250 The make good obligation 8
(1) If the exercise of a petroleum tenure holder's underground water 9
rights unduly affects an existing Water Act bore, the holder must-- 10
(a) within a reasonable period, take restoration measures to restore 11
the supply of water to the owner of the bore; or 12
(b) compensate the owner for the bore being unduly affected. 13
(2) If an existing Water Act bore is likely, after the petroleum tenure 14
ends, to become unduly affected by the exercise of the rights, the holder 15
must, before the tenure ends, comply with subsection (1) as if the bore is 16
unduly affected by the exercise of the rights.256 17
(3) The obligations under subsections (1) and (2) are the "make good 18
obligation". 19
251 Provisions for application of make good obligation 20
(1) The make good obligation applies-- 21
(a) whether the bore is inside or outside the area of the petroleum 22
tenure; and 23
(b) even if the bore was first unduly affected by the rights after the 24
tenure ends. 25
(2) If the make good obligation applies to more than 1 petroleum tenure 26
holder for the same existing Water Act bore, the obligation applies to each 27
of them jointly and severally. 28
256 See however section 268 (Effect of lodgment of review report).
s 252 191 s 254
Petroleum and Gas (Production and Safety) Bill 2004
(3) The make good obligation continues to apply despite the ending of 1
the tenure.257 2
Division 3--Underground water impact reports 3
Subdivision 1--Fixing of trigger threshold for aquifers 4
252 Operation of sdiv 1 5
(1) This division provides for the fixing of a trigger threshold for 6
aquifers in the area affected by the exercise of underground water rights for 7
a petroleum tenure. 8
(2) The fixing of the trigger threshold allows the tenure holder to prepare 9
an underground water impact report for the tenure. 10
253 Request for trigger threshold and action on request 11
(1) The petroleum tenure holder may ask the chief executive what the 12
trigger threshold is for the aquifers. 13
(2) The chief executive must-- 14
(a) if no trigger threshold already applies for the aquifers--fix a 15
trigger threshold for the aquifers and tell the tenure holder what 16
that trigger threshold is; or 17
(b) if, under section 255, a trigger threshold already applies for the 18
aquifers--tell the tenure holder what that trigger threshold is. 19
254 Provisions for fixing trigger threshold 20
(1) A trigger threshold fixed under section 253(2)(a) must be the water 21
level drop in the aquifers that the chief executive considers would be a level 22
that causes a significant reduction in the maximum pumping rate or flow 23
rate of the existing Water Act bores in the area affected by the exercise of 24
the underground water rights. 25
257 For access to the relevant land after the tenure ends to comply with the make good
obligation, see section 279 (Right of entry after petroleum tenure ends to comply
with make good obligation).
s 255 192 s 256
Petroleum and Gas (Production and Safety) Bill 2004
(2) In fixing the trigger threshold, the chief executive-- 1
(a) must consider-- 2
(i) the permeability and geometry of the aquifers; and 3
(ii) the water levels in the aquifers; and 4
(b) must allow the petroleum tenure holder a reasonable opportunity 5
to make submissions about the trigger threshold proposed by the 6
chief executive; and 7
(c) may ask the tenure holder to give the chief executive documents 8
or information the chief executive reasonably requires to fix the 9
trigger threshold. 10
(3) If the request is not complied with the chief executive may fix the 11
trigger threshold using the documents or information available to the chief 12
executive. 13
255 Fixed trigger threshold applies for all underground water rights 14
(1) This section applies if, under section 253(2)(a), a trigger threshold 15
has already been fixed for an aquifer in any part of the area affected by the 16
exercise of underground water rights for a petroleum tenure. 17
(2) The trigger threshold applies for any aquifer in the area for the 18
exercise of underground water rights for any other petroleum tenure. 19
Subdivision 2--Lodging report 20
256 Lodging report 21
(1) Each petroleum tenure holder must, on or before the relevant time, 22
lodge an underground water impact report at the following office (the 23
"relevant office")-- 24
(a) the office of the department for lodging underground water 25
impact reports, as stated in a gazette notice by the chief 26
executive; or 27
(b) if no office is gazetted under paragraph (a)--the office of the 28
chief executive. 29
(2) An underground water impact report-- 30
(a) must comply with section 257; and 31
s 257 193 s 257
Petroleum and Gas (Production and Safety) Bill 2004
(b) may relate to the exercise of underground water rights for 1 or 1
more petroleum tenures, held by the same person, or by different 2
persons. 3
(3) In this section-- 4
"relevant time" means the earlier of the following-- 5
(a) for any petroleum tenure--20 business days after the end of the 6
first year of testing for petroleum production in the area of the 7
tenure; 8
(b) for a petroleum lease--when the lease holder is, under 9
section 599,258 first required to lodge a royalty return for 10
petroleum production in the area of the lease. 11
257 Requirements for report 12
(1) Subject to section 258, an underground water impact report must 13
include each of the following-- 14
(a) the trigger threshold for aquifers in the area affected by the 15
exercise of underground water rights for the petroleum tenure; 16
(b) details of an underground water flow model prepared by the 17
holder to predict the drop in the water level, because of the 18
exercise of the rights, in aquifers predicted by the holder to be 19
affected by the exercise of the rights; 20
(c) the area and aquifers predicted by the holder to be affected by the 21
rights; 22
(d) details of the existing Water Act bores predicted by the holder to 23
be unduly affected by the exercise of the rights, either alone or in 24
combination with the exercise of underground water rights of 25
another petroleum tenure holder; 26
(e) an estimate of when each of the bores will become unduly 27
affected; 28
(f) details of a monitoring program proposed to be carried out by the 29
holder to monitor the impact of the exercise of the rights; 30
(g) other information or matters prescribed under a regulation. 31
258 Section 599 (Annual royalty returns)
s 258 194 s 259
Petroleum and Gas (Production and Safety) Bill 2004
(2) The underground water flow model must comply with any 1
requirements prescribed under a regulation. 2
(3) If the underground water impact report relates to the combined 3
exercise of underground water rights for more than 1 petroleum tenure held 4
by different persons, the report may state the liability, as between the tenure 5
holders, to comply with the make good obligation for each existing Water 6
Act bore identified in the report if it is, or becomes, unduly affected. 7
(4) However, a statement under subsection (3) does not affect the tenure 8
holders' joint and several liability under section 251 for the obligation. 9
258 Exemption from underground water flow model 10
Section 257(1)(b) need not be complied with if the chief executive is 11
satisfied-- 12
(a) that, because of the need for data to be collected after the relevant 13
time under section 256 for lodging the report, it is not reasonably 14
possible for the holder to prepare an appropriate underground 15
water flow model before that time; or 16
(b) the report shows each of the following matters and, that because 17
of the matters, the existing Water Act bores will not be unduly 18
affected by the exercise of the rights-- 19
(i) if there are existing Water Act bores in an aquifer other than 20
the source aquifer for the exercise of the rights--the source 21
aquifer is not hydraulically connected to that aquifer; 22
(ii) any existing Water Act bore in the source aquifer is 23
sufficiently separated in distance from the place where the 24
rights are to be exercised. 25
Subdivision 3--Consideration of underground water impact report 26
259 Power to require amendment of report 27
(1) If an underground water impact report (the "original report") does 28
not include details of an underground water flow model prepared by the 29
petroleum tenure holder, the chief executive may require the tenure holder 30
to, within a stated reasonable period-- 31
(a) prepare the model; and 32
s 260 195 s 260
Petroleum and Gas (Production and Safety) Bill 2004
(b) lodge an amended underground water impact report that includes 1
details of the model. 2
(2) Subsection (1) applies despite any conclusion stated in the original 3
report. 4
(3) If the chief executive is satisfied an underground water impact report 5
(also the "original report") is inadequate in a material particular, the chief 6
executive may require the petroleum tenure holder who lodged the original 7
report to lodge an amended underground water impact report that-- 8
(a) amends the original report in a stated way; or 9
(b) includes stated information or material. 10
11
Example of a possible material inadequacy--
12
In the circumstances, it was appropriate for the water monitoring program detailed in
13
the report to include the construction of a water observation bore. The construction of
14
the bore is not provided for in the report.
(4) A requirement under this section must be made by a notice to the 15
petroleum tenure holder who lodged the report. 16
(5) The notice must state a reasonable period within which the 17
requirement must be complied with. 18
(6) An amended underground water impact report must be lodged at the 19
same office at which the original report must be lodged. 20
(7) A petroleum tenure holder of whom a requirement under this section 21
has been made must comply with the requirement. 22
(8) In this section-- 23
"underground water impact report" includes an underground water 24
impact report amended under this section. 25
260 Decision on report 26
(1) The chief executive must decide whether to accept or reject the 27
underground water impact report. 28
(2) However, the chief executive may reject the report only if the chief 29
executive is satisfied it is inadequate in a material particular. 30
(3) On rejection of the report, the chief executive must give the 31
petroleum tenure holder an information notice about decision to reject the 32
report. 33
s 261 196 s 262
Petroleum and Gas (Production and Safety) Bill 2004
(4) The information notice must-- 1
(a) require the tenure holder to lodge, under section 256,259 another 2
underground water impact report; and 3
(b) state a reasonable period for lodging the other report. 4
(5) The tenure holder must comply with the requirement. 5
Division 4--Pre-closure report 6
261 Obligation to lodge pre-closure report 7
(1) A petroleum tenure holder must, within 40 business days before the 8
earliest of the following times, lodge a report (a "pre-closure report") for 9
the tenure that complies with section 262-- 10
(a) 1 year before the end of the term of the tenure; 11
(b) when the holder makes a surrender application for the tenure; 12
(c) an earlier time stated in a notice from the chief executive to the 13
holder. 14
(2) The report must be lodged at-- 15
(a) the office of the department for lodging pre-closure reports, as 16
stated in a gazette notice by the chief executive; or 17
(b) if no office is gazetted under paragraph (a)--the office of the 18
chief executive. 19
262 Requirements for report 20
The pre-closure report must state each of the following-- 21
(a) the existing Water Act bores that, after the petroleum tenure ends, 22
the tenure holder predicts may become unduly affected by the 23
exercise of the underground water rights for the tenure during its 24
term; 25
(b) an estimate of when each of the bores will become unduly 26
affected; 27
259 Section 256 (Lodging report)
s 263 197 s 265
Petroleum and Gas (Production and Safety) Bill 2004
(c) what steps have been taken to comply with the make good 1
obligation in relation to the bores; 2
(d) the information or matters prescribed under a regulation. 3
263 Power to require amendment of report 4
(1) This section applies if, before the end of the petroleum tenure, the 5
chief executive considers that the effect of the exercise of the underground 6
water rights for the tenure is materially different to the effect predicted in 7
the pre-closure report. 8
(2) The chief executive may require the tenure holder to lodge, as 9
required under section 261, an amended pre-closure report stating a 10
prediction under section 262(a) that is appropriate. 11
(3) A requirement under this section must include, or be accompanied 12
by, an information notice about the decision to make the requirement. 13
(4) The information notice must state a reasonable period for lodging the 14
amended report. 15
264 Effect of lodgment of report 16
(1) This section applies from the end of the petroleum tenure if the 17
former petroleum tenure holder has-- 18
(a) lodged a pre-closure report that complies with section 262; and 19
(b) complied with any requirement under section 263. 20
(2) The existing Water Act bores stated in the pre-closure report are, for 21
section 250(2),260 taken to be the only existing Water Act bores that are 22
likely, after the petroleum tenure ends, to become unduly affected by the 23
exercise of the underground water rights for the tenure. 24
Division 5 --Monitoring and review reports 25
265 Operation of div 5 26
(1) This division requires the tenure holder to lodge monitoring reports 27
and review reports. 28
260 Section 250 (To make good obligation)
s 266 198 s 267
Petroleum and Gas (Production and Safety) Bill 2004
(2) The purpose of a monitoring report is to monitor the effect of the 1
exercise of a petroleum tenure holder's underground water rights. 2
(3) The purposes of a review report are to-- 3
(a) compare the effect of the exercise of the rights with the predicted 4
effect in the holder's relevant underground water impact report to 5
show whether the report continues to be appropriate; and 6
(b) amend the underground water impact report to reflect the results 7
of the comparison. 8
266 Obligation to lodge monitoring reports 9
(1) Subject to sections 269 and 270, the petroleum tenure holder must 10
when the holder is, under section 552,261 required to lodge an annual report 11
for the tenure, lodge a monitoring report for the tenure. 12
(2) The monitoring report may be included in the annual report. 13
(3) The monitoring report must-- 14
(a) report on the monitoring program provided for in the tenure 15
holder's impact report; and 16
(b) state the information or matters prescribed under a regulation; 17
and 18
(c) be included in the annual report, or lodged together with it at-- 19
(i) the office of the department for lodging monitoring reports, 20
as stated in a gazette notice by the chief executive; or 21
(ii) if no office is gazetted under subparagraph (i)--the office of 22
the chief executive. 23
267 Obligation to lodge review reports 24
(1) Subject to sections 269 and 270, the petroleum tenure holder must 25
lodge review reports about each underground water impact report by the 26
holder before each of the following-- 27
(a) the first anniversary from when the underground water impact 28
report was accepted by the chief executive; 29
261 Section 552 (Obligation to lodge annual reports)
s 268 199 s 269
Petroleum and Gas (Production and Safety) Bill 2004
(b) the third anniversary of the acceptance; 1
(c) the fifth anniversary of the acceptance; 2
(d) the end of each interval of 5 years after the fifth anniversary. 3
(2) The review reports must-- 4
(a) state the information or matters prescribed under a regulation; 5
and 6
(b) amend the underground water impact report in a way that is 7
consistent with the review report; and 8
(c) be included in the annual report that under section 552, must be 9
lodged at the nearest point in time to when the review reports 10
must be lodged under subsection (1). 11
(3) For working out the intervals, any transition, under chapter 2, part 2, 12
division 2,262 of an authority to prospect to a petroleum lease must be 13
disregarded. 14
(4) The tenure holder may, at any time, lodge a review report at the office 15
at which annual reports must, under section 552, be lodged. 16
268 Effect of lodgment of review report 17
On the lodgment of a review report that complies with section 267-- 18
(a) the underground water impact report to which it relates is taken 19
to have been amended as provided in the review report; and 20
(b) if the underground water impact report conflicts with a matter 21
provided for in the review report, the underground water impact 22
report is taken to have been amended to agree with the review 23
report. 24
269 Chief executive's power to change frequency of reports 25
(1) The chief executive may, by notice to the petroleum tenure holder, 26
change the frequency required under this division for the lodging of 27
monitoring reports or review reports. 28
262 Chapter 2, part 2, division 2 (Transition from authority to prospect to petroleum
lease)
s 270 200 s 271
Petroleum and Gas (Production and Safety) Bill 2004
(2) However, the frequency may be changed for review reports only if a 1
review report shows that effect of the exercise of underground water rights 2
for the tenure on existing Water Act bores is materially different to the 3
effect predicted in the holder's underground water impact report. 4
270 Chief executive's power to change reporting days 5
(1) The chief executive may, by notice to the petroleum tenure holder, 6
change the day on which monitoring reports or review reports must be 7
lodged under this division. 8
(2) However, the changed day must not be more than 1 year after the day 9
the report was otherwise required to be lodged. 10
271 Power to require amendment of review report 11
(1) This section applies if the chief executive considers that a review 12
report does not achieve a purpose of a review report, as stated in 13
section 265(3). 14
(2) The chief executive may require the holder to lodge at the following 15
office an amended review report that does achieve all of the purposes-- 16
(a) the office of the department for lodging amended review reports, 17
as stated in a gazette notice by the chief executive; 18
(b) if no office is gazetted under paragraph (a)--the office of the 19
chief executive. 20
(3) A requirement under this section must be by a notice that includes an 21
information notice about the decision to make the requirement. 22
(4) The information notice must state a reasonable period for lodging the 23
amended report. 24
(5) A petroleum tenure holder of whom a requirement under this section 25
has been made must comply with the requirement. 26
(6) In this section-- 27
"review report" includes a review report amended under this section. 28
s 272 201 s 275
Petroleum and Gas (Production and Safety) Bill 2004
Division 6--Complying with make good obligation 1
Subdivision 1--Obligation to negotiate 2
272 Petroleum tenure holder's obligation to negotiate 3
(1) A petroleum tenure holder must make reasonable attempts to 4
negotiate an agreement (a "make good agreement") with an owner of an 5
existing Water Act bore about how the make good obligation for the bore is 6
to be complied with. 7
(2) A make good agreement may be included in a compensation 8
agreement under chapter 5, part 5263 between the tenure holder and the 9
owner. 10
Subdivision 2--Tribunal decision on how the obligation must be 11
complied with 12
273 Application of sdiv 2 13
This subdivision applies if 1 or more petroleum tenure holders to whom 14
the make good obligation applies in relation to an existing Water Act bore 15
and the owner of the bore can not agree about how the obligation is to be 16
complied with. 17
274 Applying to tribunal 18
(1) Any of the tenure holders or the owner may apply to the tribunal for it 19
to decide how the obligation must be complied with. 20
(2) If the obligation applies because of the combined exercise of 21
underground water rights for more than 1 petroleum tenure and the tenures 22
are held by different persons, each of the tenure holders must be a party to 23
the application. 24
275 Provisions for making decision 25
(1) The tribunal may decide how the obligation must be complied with. 26
263 Chapter 5, part 5 (General compensation provisions)
s 276 202 s 276
Petroleum and Gas (Production and Safety) Bill 2004
(2) However-- 1
(a) the tribunal may make the decision only to the extent the 2
obligation is not the subject of a make good or other agreement 3
between the tenure holder and the owner; and 4
(b) the tribunal may decide the owner must be compensated only if 5
the tribunal considers it is not reasonably feasible to comply with 6
the obligation by the taking of any restoration measures. 7
(3) The tribunal may make any order it considers appropriate to meet or 8
enforce its decision on the application. 9
(4) If-- 10
(a) the obligation arose because of the combined exercise of 11
underground water rights for more than 1 petroleum tenure; and 12
(b) the tenures are held by different persons; and 13
(c) the tenure holders have not agreed between themselves about 14
how much each must contribute to comply with the obligation; 15
the tribunal may decide their contributions. 16
(5) However, a decision under subsection (4) does not affect the tenure 17
holders' joint and several liability under section 251264 for the obligation. 18
276 Provisions for deciding compensation 19
(1) This section applies if the tribunal decides that the obligation is to be 20
complied with by compensation to the owner. 21
(2) The compensation may only be for-- 22
(a) diminution of any of the following because of the exercise of 23
underground water rights-- 24
(i) the value of the owner's land on which the bore is located; 25
(ii) the use the owner has made, or may make, of water from the 26
existing Water Act bore; or 27
(b) any cost or loss the owner suffers that is caused by the impaired 28
capacity of the bore. 29
264 Section 251 (Provisions for application of make good obligation)
s 277 203 s 278
Petroleum and Gas (Production and Safety) Bill 2004
1
Example of a possible cost--
2
the cost of transporting water to the land from an alternative water source
(3) In deciding the amount of the compensation, the tribunal may 3
consider any restoration measures, successful or otherwise, taken or 4
attempted by the tenure holder. 5
(4) The tribunal must, as far as practicable, decide the compensation at 6
the same time as it makes any decision about any compensation liability 7
that the tenure holder has to the owner under chapter 5, part 5.265 8
Subdivision 3--Miscellaneous provisions 9
277 Make good agreement or tribunal's decision binds successors and 10
assigns 11
(1) A make good agreement or a decision by the tribunal under 12
subdivision 2 is for the benefit of, and is taken to have been agreed to or 13
decided for and is binding on-- 14
(a) the owner of the relevant existing Water Act bore; and 15
(b) the relevant petroleum tenure holder; and 16
(c) each of their successors and assigns, including successors and 17
assigns for the area of the relevant petroleum tenure.266 18
(2) Subsection (1) is subject to section 278. 19
278 Reviews by tribunal 20
(1) This section applies if, since the making of a make good agreement 21
or a decision by the tribunal under subdivision 2 (the "original agreement 22
or decision"), there has been a material change in circumstances 23
(the "change"). 24
(2) Any person mentioned in section 277 may apply to the tribunal for it 25
to review the original agreement or decision. 26
(3) In carrying out the review, the tribunal may review the agreement or 27
decision only to the extent it is affected by the change. 28
265 Chapter 5, part 5 (General compensation provisions)
266 See also section 249 (References to petroleum tenure holder in pt 9).
s 279 204 s 280
Petroleum and Gas (Production and Safety) Bill 2004
(4) The tribunal may, after carrying out the review, decide to confirm the 1
original agreement or decision or amend it in a way the tribunal considers 2
appropriate. 3
(5) If the decision is to amend the original agreement or decision, the 4
original agreement or decision, as amended under the decision, is for this 5
Act, taken to be the original agreement or decision. 6
279 Right of entry after petroleum tenure ends to comply with make 7
good obligation 8
(1) This section applies if a petroleum tenure holder has not complied 9
with the make good obligation in relation to an existing Water Act bore and 10
the tenure has ended. 11
(2) The former tenure holder may enter the land on which the bore is 12
located to comply with the make good obligation. 13
(3) Chapter 5, parts 2, 3 and 5,267 apply to the former tenure holder as 14
if-- 15
(a) the tenure were still in force; and 16
(b) the former tenure holder is its holder; and 17
(c) the land is in the area of the tenure; and 18
(d) compliance with the make good obligation is an authorised 19
activity for the tenure. 20
280 Advice from Water Act regulator 21
(1) The chief executive must, before deciding any matter under this part, 22
seek advice about the matter from the Water Act regulator. 23
(2) A failure to comply with subsection (1) does not invalidate or 24
otherwise affect the decision. 25
267 Chapter 5, parts 2 (Private land), 3 (Public land) and 5 (General compensation
provisions)
s 281 205 s 283
Petroleum and Gas (Production and Safety) Bill 2004
PART 10--GENERAL PROVISIONS FOR PETROLEUM 1
WELLS, WATER SUPPLY BORES AND WATER 2
OBSERVATION BORES 3
Division 1--Restrictions on drilling 4
281 Standard for drilling petroleum well 5
(1) A person drilling a petroleum well must comply with the standard 6
prescribed under a regulation for the drilling. 7
Maximum penalty--300 penalty units. 8
(2) The prescribed standard may include provisions to prevent the 9
drilling adversely affecting the carrying out of future coal mining under the 10
Mineral Resources Act. 11
282 Restriction on who may drill water observation bore or water 12
observation bore 13
A person must not drill a water observation bore or water supply bore 14
unless-- 15
(a) the person is a licensed water bore driller; or 16
(b) the Water Act, section 816(2)(a) or (c)268 applies. 17
Maximum penalty--300 penalty units. 18
Division 2--Converting petroleum well to water supply bore 19
283 Restrictions on making conversion 20
A petroleum tenure holder may convert a petroleum well in the area of 21
the tenure to a water supply bore only if-- 22
(a) the well has been modified for the purpose of taking water; and 23
(b) the modification was carried out by a licensed water bore driller. 24
Maximum penalty--500 penalty units. 25
268 Water Act, section 816 (Unauthorised water bore activities)
s 284 206 s 286
Petroleum and Gas (Production and Safety) Bill 2004
284 Notice of conversion 1
If a petroleum tenure holder converts a petroleum well to a water supply 2
bore, the holder must, within 10 business days after the conversion, lodge a 3
notice at the following office stating the information prescribed under a 4
regulation-- 5
(a) the office of the department for lodging the notice, as stated in a 6
gazette notice by the chief executive; 7
(b) if no office is gazetted under paragraph (a)--the office of the 8
chief executive. 9
Maximum penalty--50 penalty units. 10
Division 3--Transfers of petroleum wells, water observation bores and 11
water supply bores 12
Subdivision 1--General provisions 13
285 Operation of div 3 14
(1) This division permits, in particular circumstances, the transfer of the 15
following in relation to a petroleum well, water observation bore or water 16
supply bore-- 17
(a) the control of, and responsibility for, the well or bore; 18
(b) the ownership of any works constructed in connection with the 19
well or bore. 20
(2) In this division, a "transfer" of a petroleum well, water observation 21
bore or water supply bore is a reference to a transfer in relation to the well 22
or bore mentioned in subsection (1).269 23
286 Transfer only permitted under div 3 24
A purported transfer of a petroleum well, water observation bore or 25
water supply bore is of no effect unless-- 26
(a) the transfer is permitted under this division; and 27
269 For the ownership of works mentioned in subsection (1)(b) generally, see
section 542 (Ownership of equipment and improvements).
s 287 207 s 288
Petroleum and Gas (Production and Safety) Bill 2004
(b) the requirements under this subdivision for making the transfer 1
have been complied with. 2
287 Effect of transfer 3
(1) If a petroleum well, water observation bore or water supply bore is 4
transferred under this division, any obligation the transferor had under this 5
Act or another law in relation to the well or bore ceases. 6
(2) However, if the transferor is someone other than the State, 7
subsection (1) does not apply to the Environmental Protection Act.270 8
Subdivision 2--Permitted transfers 9
288 Transfer of water supply bore or water observation bore to 10
landowner 11
(1) A petroleum tenure holder may, by complying with the requirements 12
under subsection (3), transfer a water observation bore or water supply bore 13
in the area of the tenure to the landowner. 14
(2) A water monitoring authority holder may, by complying with the 15
requirements under subsection (3), transfer a water observation bore in the 16
area of the authority to the landowner. 17
(3) For subsections (1) and (2), the requirements are that each of the 18
following have been lodged at the relevant office-- 19
(a) a notice issued by the Water Act regulator stating-- 20
(i) that the construction of the bore was carried out under the 21
Water Act and any relevant water bore driller's licence 22
under that Act;271 and 23
(ii) whether or not the Water Act requires the owner to hold a 24
Water Act licence to take water from the bore to be 25
transferred; 26
270 For transfers by the State, see section 294 (Responsibility for well or bore after
decommissioning).
271 For relevant conditions, see the Water Regulation 2002, section 23(1) (Conditions of
water bore driller's licence--Act s 302).
s 289 208 s 289
Petroleum and Gas (Production and Safety) Bill 2004
(b) if the Water Act requires the owner to hold a Water Act licence to 1
take water from the bore to be transferred--a copy of the licence; 2
(c) a notice in the approved form; 3
(d) the transfer fee prescribed under a regulation. 4
(4) The approved form must require the signed consent of the landowner 5
to the transfer. 6
(5) In this section-- 7
"construction", for a water supply bore, includes any modification under 8
section 283. 9
"landowner" means the owner of the land on which the bore is located. 10
"relevant office" means-- 11
(a) the office of the department for lodging applications under this 12
section, as stated in a gazette notice by the chief executive; or 13
(b) if no office is gazetted under paragraph (a)--the office of the 14
chief executive. 15
289 Transfer of petroleum well to holder of geothermal exploration 16
permit or mining tenement 17
A petroleum tenure holder may transfer a petroleum well in the area of 18
the tenure to the holder of a geothermal exploration permit or a mining 19
tenement if-- 20
(a) the well is in the area of the permit or tenement; and 21
(b) a notice in the approved form and the transfer fee prescribed 22
under a regulation have been lodged at-- 23
(i) the office of the department for lodging the application, as 24
stated in a gazette notice by the chief executive; or 25
(ii) if no office is gazetted under subparagraph (i)--the office of 26
the chief executive. 27
s 290 209 s 292
Petroleum and Gas (Production and Safety) Bill 2004
290 Transfer of water observation bore to petroleum tenure or water 1
monitoring authority holder 2
A petroleum tenure holder or water monitoring authority holder may 3
transfer a water observation bore in the area of the tenure or authority to the 4
holder of another petroleum tenure or water monitoring authority if-- 5
(a) the bore is in the area of the other tenure or authority; and 6
(b) a notice in the approved form and the transfer fee prescribed 7
under a regulation have been lodged at-- 8
(i) the office of the department for lodging the application, as 9
stated in a gazette notice by the chief executive; or 10
(ii) if no office is gazetted under subparagraph (i)--the office of 11
the chief executive. 12
Subdivision 3--Notice of transfer 13
291 Notice of transfer to Water Act regulator or Mineral Resources 14
Act chief executive 15
(1) If a transfer is made under section 288, the chief executive must give 16
the Water Act regulator notice of the transfer. 17
(2) If a transfer is made under section 289, the chief executive must give 18
the chief executive that administers the Mineral Resources Act notice of the 19
transfer. 20
(3) A failure to comply with subsection (1) or (2) does not invalidate or 21
otherwise affect the transfer. 22
Division 4--Decommissioning of petroleum wells, water observation 23
bores and water supply bores 24
292 Obligation to decommission 25
(1) This section applies to a person (the "responsible person") who 26
holds a petroleum tenure or a water monitoring authority, for each 27
s 292 210 s 292
Petroleum and Gas (Production and Safety) Bill 2004
petroleum well, water observation bore or water supply bore in the area of 1
the tenure or authority.272 2
(2) The responsible person must ensure the well or bore is 3
decommissioned from use under this Act before-- 4
(a) the tenure or authority ends; or 5
(b) the land on which the well or bore is located ceases to be in the 6
area of the tenure or authority. 7
(3) However subsection (2) does not apply for land that, under 8
section 101(1),273 ceases to be in the area of an authority to prospect. 9
(4) For subsection (2), the well or bore is decommissioned from use 10
under this Act only if-- 11
(a) it has been plugged and abandoned in the way prescribed under a 12
regulation; and 13
(b) the decommissioning complies with the Water Act, sections 816 14
and 817;274 and 15
(c) the responsible person has lodged a notice about the 16
decommissioning.275 17
(5) The notice must be-- 18
(a) in the approved form; and 19
(b) lodged at-- 20
(i) the office of the department for lodging the notice, as stated 21
in a gazette notice by the chief executive; or 22
(ii) if no office is gazetted under subparagraph (i)--the office 23
stated in the approved form; or 24
(iii) otherwise--the office of the chief executive. 25
272 For when the holder owns the well or bore see, division 3, subdivision 1 and
section 542 (Ownership of equipment and improvements)
273 Section 101 (Area of authority to prospect reduced on grant of petroleum lease)
274 Water Act, sections 816 (Unauthorised water bore activities) and 817 (Contravening
requirements for mining and petroleum drilling)
275 See also section 580 (Power of authorised person to ensure compliance).
s 293 211 s 294
Petroleum and Gas (Production and Safety) Bill 2004
293 Right of entry to facilitate decommissioning 1
(1) This section applies if-- 2
(a) a responsible person under section 292 has not carried out 3
decommissioning on land as required under that section; and 4
(b) the relevant petroleum tenure or water monitoring authority has 5
ended; or 6
(c) the land on which the well or bore is located is no longer in the 7
area of the tenure or authority. 8
(2) The responsible person may enter the following land to carry out the 9
decommissioning-- 10
(a) land (the "primary land") on which the decommissioning must 11
be, or was required to be, carried out; 12
(b) any other land (the "access land") it is reasonably necessary to 13
cross for access to the primary land. 14
(3) Chapter 5, parts 2, 3 and 5,276 apply to the responsible person, in the 15
following way-- 16
(a) if the tenure or authority has ended, as if-- 17
(i) it were still in force; and 18
(ii) the person is its holder; 19
(b) as if the primary land and access land is in the area of the tenure 20
or authority; 21
(c) as if the decommissioning is an authorised activity for the tenure 22
or authority. 23
294 Responsibility for well or bore after decommissioning 24
(1) This section applies if a petroleum tenure holder or water monitoring 25
authority holder has, under section 292,277 decommissioned a petroleum 26
well, water observation bore or water supply bore. 27
276 Chapter 5, parts 2 (Private land), 3 (Public land) and 5 (General compensation
provisions)
277 For ownership before decommissioning, see section 542 (Ownership of equipment
and improvements).
s 294 212 s 294
Petroleum and Gas (Production and Safety) Bill 2004
(2) Despite the decommissioning, the holder continues to be responsible 1
under this Act for the well or bore until the earlier of the following times 2
(the "relevant time")-- 3
(a) when the petroleum tenure ends; 4
(b) when the land on which the well or bore is located ceased to be in 5
the area of the tenure. 6
(3) At the relevant time the well or bore is taken to have been transferred 7
to the State. 8
(4) Subsection (3) applies despite-- 9
(a) the exploration bore being on or part of land owned by someone 10
else; or 11
(b) the sale or other disposal of the land. 12
(5) After the relevant time, the State may transfer the well or bore. 13
(6) However-- 14
(a) the transfer from the State can only be to-- 15
(i) the owner of the land on which the well or bore is located; 16
or 17
(ii) the holder of a geothermal exploration permit or mining 18
tenement the area of which includes that land; and 19
(b) the transfer from the State and the use of the well or bore by the 20
transferee is subject to this Act and any other relevant Act or law. 21
s 295 213 s 295
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 3--PROVISIONS FOR COAL SEAM GAS 1
PART 1--PRELIMINARY 2
Division 1--Introduction 3
295 Main purposes of ch 3 4
The main purposes of this chapter are to-- 5
(a) clarify rights to explore for and produce coal seam gas; and 6
(b) address issues arising for coal seam gas exploration and 7
production, and, in particular, issues arising when a petroleum 8
tenure and a coal or oil shale mining tenement are granted over 9
the same area; and 10
(c) ensure petroleum exploration and production is-- 11
(i) carried out safely; and 12
(ii) does not compromise the safe and efficient mining of coal 13
seams or oil shale; and 14
(d) provide security of tenure to protect existing operations and 15
investments relating to coal, oil shale and petroleum;278 and 16
(e) provide certainty of tenure for future investments relating to coal, 17
oil shale and petroleum; and 18
(f) optimise the development and use of the State's coal, oil shale 19
and petroleum resources to maximise the benefit for all 20
Queenslanders; and 21
(g) ensure petroleum exploration and production does not 22
compromise the ability to mine coal seams economically in the 23
future; and 24
(h) ensure, if it is commercially and technically feasible, the grant of 25
petroleum leases that may affect coal or oil shale mining, or 26
proposed coal or oil shale mining, optimises the commercial use 27
278 For existing operations, see also the Mineral Resources Act, part 19, division 6
(Transitional provisions for Petroleum and Gas (Production and Safety) Act 2004).
s 296 214 s 296
Petroleum and Gas (Production and Safety) Bill 2004
of coal, oil shale and petroleum resources in a safe and efficient 1
way. 2
296 How main purposes are achieved 3
(1) The main purposes of this chapter are achieved by-- 4
(a) providing for processes to decide the priority of overlapping 5
petroleum lease applications and coal or oil shale mining 6
tenement applications and potential applications; and 7
(b) facilitating the obtaining of a petroleum lease over land in the 8
area of a coal mining lease or oil shale mining lease; and 9
(c) imposing additional requirements for deciding the overlapping 10
applications; and 11
(d) imposing restrictions on the authorised activities for particular 12
petroleum tenures; and 13
(e) imposing additional-- 14
(i) requirements relating to development plans for petroleum 15
exploration or production under a petroleum lease; and 16
(ii) conditions on authorities to prospect and petroleum leases; 17
and 18
(f) granting, under part 2, division 1 and part 3, division 3,279 the 19
following the right to apply for a petroleum lease-- 20
(i) particular coal or oil shale mining tenement holders; 21
(ii) others who apply jointly with the holders. 22
(2) The following are also relevant to the achievement of the purposes-- 23
(a) sections 10, 800(2) and 802(1)(c); 24
(b) chapter 2, part 8; 25
(c) chapter 9; 26
279 Part 2, division 1 (Obtaining petroleum lease other than by or jointly with, or with
the consent of, coal or oil shale exploration tenement holder) and part 3, division 3
(Petroleum lease application by or jointly with coal mining lease holder or oil shale
mining lease holder)
s 297 215 s 298
Petroleum and Gas (Production and Safety) Bill 2004
(d) the Mineral Resources Act, sections 3A, and 6, part 7AA and 1
part 19, division 6.280 2
297 Relationship with chs 2, 5 and 15 3
(1) Requirements and restrictions under this chapter apply as well as any 4
relevant requirements under chapters 2, 5 and 15.281 5
(2) If this chapter imposes a requirement for or a restriction on the 6
granting, renewal, division or transfer of a petroleum tenure, the tenure 7
can not be granted, renewed, divided or transferred if the restriction applies 8
or if the requirement has not been met. 9
(3) If this chapter imposes a requirement for or a restriction on the 10
carrying out of an authorised activity for a petroleum tenure or data 11
acquisition authority, despite chapter 2, the activity is not an authorised 12
activity for the tenure while the restriction applies or if the requirement has 13
not been met. 14
(4) If a provision of this chapter conflicts with a provision of chapter 2, 5 15
or 15, the provision of this chapter prevails to the extent of the 16
inconsistency. 17
298 Description of petroleum leases for ch 3 18
Despite section 29282 and any provision of chapter 3, a petroleum lease 19
applied for or granted under this chapter may be described in metes and 20
bounds. 21
280 Sections 10 (Meaning of "petroleum"), 800 (Restriction on petroleum tenure
activities), 802 (Restriction on pipeline construction or operation), chapter 2, part 8
(Petroleum activities coordination) and chapter 9 (Safety)
Mineral Resources Act, sections 3A (Relationship with petroleum legislation) and 6
(Meaning of "mineral"), part 7AA (Provisions for coal seam gas) and part 19,
division 6 (Transitional provisions for Petroleum and Gas (Production and Safety)
Act 2004)
281 Chapters 2 (Petroleum tenures and related matters), 5 (Common petroleum authority
provisions) and 15 (Repeal and transitional provisions)
282 Section 29 (Graticulation of earth's surface into "blocks" and "sub-blocks")
s 299 216 s 301
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Definitions for chapter 3 1
299 What is "coal seam gas" and "incidental coal seam gas" 2
(1) "Coal seam gas" is petroleum (in any state) occurring naturally in 3
association with coal or oil shale, or in strata associated with coal or oil 4
shale mining. 5
(2) "Incidental coal seam gas" is incidental coal seam gas as defined 6
under the Mineral Resources Act, section 318CM(2).283 7
300 What is "oil shale" 8
"Oil shale" is any shale or other rock (other than coal) from which a 9
gasification or retorting product may be extracted or produced. 10
301 What is a "coal exploration tenement" and a "coal mining lease" 11
(1) A "coal exploration tenement" is an exploration permit or mineral 12
development licence under the Mineral Resources Act granted for coal. 13
(2) A "coal mining lease" is-- 14
(a) a mining lease for coal; or 15
(b) a special coal mining lease granted under any of the following 16
Acts, an agreement provided for under any of the Acts or any 17
amendment of an agreement provided for under any of the 18
Acts-- 19
(i) the Central Queensland Coal Associates Agreement Act 20
1968; 21
(ii) the Thiess Peabody Mitsui Coal Pty. Ltd. Agreements Acts 22
1962 to 1965; or 23
(c) a specific purpose mining lease for a purpose associated with, 24
arising from or promoting the activity of coal mining, whether or 25
not it is also granted for a purpose other than coal mining. 26
(3) Subsections (1) and (2)(a) apply whether or not the lease, permit or 27
licence is also granted for another mineral. 28
283 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)
s 302 217 s 304
Petroleum and Gas (Production and Safety) Bill 2004
302 What is an "oil shale exploration tenement" and an "oil shale 1
mining lease" 2
(1) An "oil shale exploration tenement" is an exploration permit or 3
mineral development licence granted for oil shale. 4
(2) An "oil shale mining lease" is-- 5
(a) a mining lease for oil shale; or 6
(b) a specific purpose mining lease for a purpose associated with, 7
arising from or promoting the activity of oil shale mining, 8
whether or not it is also granted for a purpose other than oil shale 9
mining. 10
(3) Subsections (1) and (2)(a) apply whether or not the lease, permit or 11
licence is also granted for another mineral. 12
303 What is a "coal or oil shale mining tenement" 13
A "coal or oil shale mining tenement" is-- 14
(a) a coal exploration tenement; or 15
(b) an oil shale exploration tenement; or 16
(c) a coal mining lease or oil shale mining lease. 17
PART 2--OBTAINING PETROLEUM LEASE OVER 18
LAND IN AREA OF COAL OR OIL SHALE 19
EXPLORATION TENEMENT 20
Division 1--Obtaining petroleum lease other than by or jointly with, or 21
with the consent of, coal or oil shale exploration tenement holder 22
Subdivision 1--Preliminary 23
304 Application of div 1 24
(1) This division applies if-- 25
s 305 218 s 305
Petroleum and Gas (Production and Safety) Bill 2004
(a) land is in the area of a coal or oil shale exploration tenement; and 1
(b) a person, who, under section 117,284 may make an ATP-related 2
application for all or part of the land wishes to make that 3
application. 4
(2) However, this division does not apply if-- 5
(a) the person is the tenement holder; or 6
(b) if the application is to be made jointly with the tenement holder; 7
or 8
(c) the application is made with the tenement holder's written 9
consent.285 10
Subdivision 2--Provisions for making petroleum lease application 11
305 Additional requirements for making application 12
(1) The ATP-related application must include the following-- 13
(a) a statement (a "CSG statement") that complies with 14
section 306; 15
(b) other information that addresses the matters mentioned in 16
subsection (2) (the "CSG assessment criteria"). 17
(2) The CSG assessment criteria are-- 18
(a) the requirements of chapter 9;286 and 19
(b) the initial development plan requirements; and 20
(c) the additional requirements under part 6, division 1 for
287
21
proposed initial development plans; and 22
(d) the legitimate business interests of the applicant and the coal or 23
oil shale exploration tenement holder (the "parties"); and 24
284 Section 117 (Who may apply)
285 For the circumstances mentioned in subsection (2), see division 2 (Petroleum lease
application by or jointly with, or with the consent of, coal or oil shale exploration
tenement holder).
286 Chapter 9 (Safety)
287 Part 6 (Additional provisions for development plans), division 1 (Additional
requirements for proposed initial development plans)
s 305 219 s 305
Petroleum and Gas (Production and Safety) Bill 2004
1
Examples of a party's legitimate business interests--
2
· contractual obligations
3
· the effect on, and use of, existing infrastructure or mining or
4
production facilities
5
· exploration expenditure on relevant overlapping tenures
(e) the effect of the proposed petroleum lease on the future 6
development of coal or oil shale resources from the land, 7
including for example, each of the following-- 8
(i) the proposed timing and rate of petroleum production and 9
the development of coal or oil shale resources from the land; 10
(ii) the potential for the parties to make a coordination 11
arrangement about-- 12
(A) petroleum production under the proposed petroleum 13
lease; and 14
(B) coal or oil shale mining and any incidental coal seam 15
gas mining under any future mining lease over the 16
land; 17
(iii) the attempts required of the applicant under 18
section 310(1)(b);288 19
(iv) the economic and technical viability of the concurrent or 20
coordinated petroleum production and the development of 21
any coal or oil shale resources in the land; 22
(v) the extent, nature and value of petroleum production and the 23
development of any coal or oil shale resources in the land; 24
and 25
(f) the public interest in petroleum production from, and the 26
development of any coal or oil shale resources in, the land, 27
having regard to the public interest. 28
(3) The proposed development plan included in the application must also 29
comply with part 6, division 1.289 30
288 Section 310 (Applicant's obligations)
289 Part 6 (Additional provisions for development plans), division 1 (Additional
requirements for proposed initial development plans)
s 306 220 s 307
Petroleum and Gas (Production and Safety) Bill 2004
306 Content requirements for CSG statement 1
(1) A CSG statement must-- 2
(a) assess-- 3
(i) the likely effect of proposed petroleum production on the 4
future development of coal or oil shale resources from the 5
land; and 6
(ii) the technical and commercial feasibility of coordinated 7
petroleum production and coal or oil shale mining from the 8
land; and 9
(b) include a proposed safety management plan for all operating 10
plant, or proposed operating plant, for proposed petroleum 11
production under the lease that may affect possible future safe 12
and efficient mining under the coal mining lease or oil shale 13
mining lease. 14
(2) The proposed safety management plan must-- 15
(a) comply with the requirements under sections 388 and 675 for a 16
safety management plan;290 and 17
(b) include proposals for the minimisation of potential adverse 18
effects on possible future safe and efficient mining under a future 19
mining lease.291 20
Subdivision 3--Provisions for splitting application in particular 21
circumstances 22
307 Requirement to split application if it relates to coal or oil 23
shale mining tenements not held by the same person 24
(1) This section applies if the ATP-related application is-- 25
(a) for land in the area of each of the following-- 26
(i) the coal or oil shale exploration tenement (the "exploration 27
tenement part"); 28
290 Sections 388 (Additional content requirements) and 675 (Content requirements for
safety management plans)
291 See also section 385 (Grant of petroleum lease does not affect obligation to make
plan).
s 308 221 s 309
Petroleum and Gas (Production and Safety) Bill 2004
(ii) a coal mining lease or oil shale mining lease (the "mining 1
lease part"); and 2
(b) the exploration tenement and the mining lease are not held by the 3
same person.292 4
(2) The application must be treated as if it were separate applications for 5
the exploration tenement part and the mining lease part. 6
(3) The application for the exploration tenement part must be decided 7
under this division. 8
(4) The application for the mining lease part must be decided under 9
part 3.293 10
(5) Despite subsections (2) to (4) and any other provision of this part, no 11
step may be taken in relation to deciding the applications until the relevant 12
requirements for making them have been complied with.294 13
308 Power to split application if it includes other land 14
(1) This section applies if the ATP-related application includes land 15
(the "other part") not in the area of a coal or oil shale mining tenement. 16
(2) The Minister may decide to treat the application to the extent it 17
applies to the other part as if it were a separate petroleum lease application. 18
(3) The separate application must be decided under chapter 2.295 19
(4) Despite subsections (2) and (3) and any other provision of this part, 20
no step may be taken in relation to deciding the applications until the 21
relevant requirements for making them have been complied with.296 22
309 Power to split application at applicant's request 23
(1) The Minister may, at the applicant's request, decide to treat the 24
application as if it were separate petroleum lease applications to allow them 25
292 If the coal or oil shale exploration tenement and the coal mining lease or oil shale
mining lease are held by the same person, see section 344(3) (Application of div 2).
293 Part 3 (Obtaining petroleum lease over land in area of coal mining lease or oil shale
mining lease)
294 For the applicants' power to amend, see section 844 (Amending applications).
295 Chapter 2 (Petroleum tenures and related matters)
296 For the applicants' power to amend, see section 844 (Amending applications).
s 310 222 s 310
Petroleum and Gas (Production and Safety) Bill 2004
to be decided under this chapter or chapter 2, as the Minister considers 1
appropriate. 2
(2) However, no step may be taken in relation to the deciding of the 3
applications until the relevant requirements for making them have been 4
complied with. 5
Subdivision 4--Obligations of applicant and coal or oil shale exploration 6
tenement holder 7
310 Applicant's obligations 8
(1) The applicant must-- 9
(a) within 10 business days after making the ATP-related 10
application, give the coal or oil shale exploration tenement holder 11
a copy of the application, other than any part of the application 12
that relates to the capability criteria; and 13
(b) use reasonable attempts to-- 14
(i) consult with the tenement holder about the applicant's 15
proposed development plan and proposed safety 16
management plan; and 17
(ii) make an appropriate arrangement with the tenement holder 18
about advanced testing carried out, or proposed to be carried 19
out, by the tenement holder (a "testing arrangement");297 20
and 21
22
Example of advanced testing--
23
bulk sampling
(c) change the proposed plans to give effect to any reasonable 24
proposal by the tenement holder that will optimise the safe and 25
efficient production of-- 26
(i) petroleum under the proposed petroleum lease; and 27
(ii) coal or oil shale under any future mining lease over the land; 28
and 29
(d) within 4 months after the making of the application, lodge a 30
notice stating each of the following-- 31
297 See also part 8 (Confidentiality of information).
s 310 223 s 310
Petroleum and Gas (Production and Safety) Bill 2004
(i) the details of the consultation; 1
(ii) the results of the consultation; 2
(iii) any comments the applicant wishes to make about any 3
submissions lodged by the tenement holder, under 4
section 314;298 5
(iv) any changes to the proposed development plan or proposed 6
safety management plan; 7
(v) if a testing arrangement has been made--details of the 8
arrangement; 9
(vi) if a testing arrangement has not been made--details of the 10
attempts made to make a testing arrangement; 11
(vii) the applicant's assessment of the potential for the applicant 12
and the tenement holder to make a coordination 13
arrangement about-- 14
(A) petroleum production under the proposed petroleum 15
lease; and 16
(B) coal or oil shale mining and any incidental coal seam 17
gas mining under any future mining lease over the 18
land. 19
(2) However, the obligations under subsection (1)(b)(ii) and (c) apply 20
only to the extent the provisions or arrangement are commercially and 21
technically feasible for the applicant. 22
(3) For subsection (1)(b)(ii), if the exploration tenement is an exploration 23
permit, it is appropriate for the agreement to give the permit holder the 24
right to carry out advanced testing to satisfy the Minister under the Mineral 25
Resources Act, section 186(1)(b).299 26
(4) However, subsection (3) does not require the applicant to agree to 27
testing having a duration of more than 12 months. 28
(5) A notice under subsection (1)(d) must be lodged at-- 29
(a) the office of the department for lodging the notice, as stated in a 30
gazette notice by the chief executive; or 31
298 Section 314 (Submissions by coal or oil shale exploration tenement holder)
299 See Mineral Resources Act, section 186(1)(b) (Minister may grant or reject
application for mineral development licence).
s 311 224 s 313
Petroleum and Gas (Production and Safety) Bill 2004
(b) if no office is gazetted under paragraph (a)--the office of the 1
chief executive. 2
311 Minister may require further negotiation 3
(1) The Minister may, after receiving the notice under section 310(1)(d), 4
require the applicant to conduct negotiations with the coal or oil shale 5
exploration tenement holder with a view to-- 6
(a) making a testing arrangement mentioned in section 310(1)(b)(ii); 7
or 8
(b) making changes of a type mentioned in section 310(1)(c). 9
(2) The applicant must use all reasonable attempts to comply with the 10
requirement. 11
312 Consequence of applicant not complying with obligations or 12
requirement 13
If the Minister is reasonably satisfied the applicant has not complied 14
with an obligation under section 310 or 311, the ATP-related application 15
may be refused.300 16
313 Obligations of coal or oil shale exploration tenement holder 17
The coal or oil shale exploration tenement holder must-- 18
(a) within 20 business days after receiving a copy of the application, 19
give the applicant basic information the tenement holder has 20
about the following that the applicant may reasonably need to 21
comply with section 310-- 22
(i) the type of exploration activities carried out, or proposed to 23
be carried out under the tenement; 24
(ii) coal or oil shale resources in the land; and 25
(b) after receiving a copy of the ATP-related application, make 26
reasonable attempts to reach an agreement with the applicant 27
about the matters mentioned in section 310(1)(b) that provides 28
300 See also part 8 (Confidentiality of information).
s 314 225 s 314
Petroleum and Gas (Production and Safety) Bill 2004
the best resource use outcome without significantly affecting the 1
parties' rights or interests.301 2
314 Submissions by coal or oil shale exploration tenement holder 3
(1) The coal or oil shale exploration tenement holder may lodge 4
submissions about the ATP-related application at-- 5
(a) the office of the department for lodging the submissions, as 6
stated in a gazette notice by the chief executive; or 7
(b) if no office is gazetted under paragraph (a)--the office of the 8
chief executive. 9
(2) However, the submissions may be lodged only within 3 months after 10
the holder is, under section 310(1)(a),302 given a copy of the application
(the "submission period"). 12
11
(3) The submissions may-- 13
(a) state that the holder does not object to the granting of the 14
proposed petroleum lease; and 15
(b) state that the holder does not wish any preference for the future 16
development of coal or oil shale from the land ("coal or oil shale 17
development preference"); and 18
(c) include information about all or any of the following-- 19
(i) exploration carried out under the tenement; 20
(ii) the results of the exploration; 21
(iii) the prospects for future coal or oil shale mining or 22
incidental coal seam gas mining from the land; and 23
(d) include a proposal by the tenement holder for the development of 24
coal or oil shale in the land; and 25
(e) include information relevant to the CSG assessment criteria;303 26
and 27
301 See also part 8 (Confidentiality of information).
302 Section 310 (Applicant's obligations)
303 See also part 8 (Confidentiality of information).
s 315 226 s 315
Petroleum and Gas (Production and Safety) Bill 2004
(f) include reasonable provisions for the safety management plan for 1
petroleum production under the petroleum lease.304 2
(4) The holder must give the applicant a copy of the submissions. 3
(5) In deciding the ATP-related application, regard must be had to the 4
submissions. 5
Subdivision 5--Priority for earlier coal mining lease or oil shale mining 6
lease application or proposed application 7
315 Earlier coal mining lease or oil shale mining lease application 8
(1) The ATP-related application must not be decided if-- 9
(a) before the making of the ATP-related application, a coal mining 10
lease application or an oil shale mining lease application was 11
made for the land; and 12
(b) the mining lease application complies with the Mineral 13
Resources Act, sections 245 and 246, and any relevant provision 14
of part 7AA of that Act;305 and 15
(c) the mining lease application has not been decided. 16
(2) However, subsection (1) does not apply if-- 17
(a) the ATP-related application was made in response to an invitation 18
in a notice given under the Mineral Resources Act, 19
section 318BG306 and the application was made within 6 months 20
after the giving of the notice; or 21
304 See also section 386 (Consultation with particular coal mining tenement or oil shale
mining tenement holders required before making plan).
305 Mineral Resources Act, sections 245 (Application for grant of mining lease), 246
(Description of mining lease) and part 7AA (Provisions for coal seam gas)
306 Mineral Resources Act, section 318BG (Notice to applicant and authority to
prospect holder)
s 316 227 s 316
Petroleum and Gas (Production and Safety) Bill 2004
(b) the coal mining lease or oil shale mining lease applicant has 1
given written consent to the petroleum lease application.307 2
316 Proposed coal mining lease or oil shale mining lease for which EIS 3
approval given 4
(1) The ATP-related application must not be decided if-- 5
(a) before the making of the ATP-related application, an approval 6
under the Environmental Protection Act, chapter 3, part 2,308 was 7
granted for the voluntary preparation of an EIS for a project that 8
is, or includes, a proposed coal mining lease or oil shale mining 9
lease mining lease for the land; and 10
(b) the proponent for the EIS-- 11
(i) is, or includes, the coal or oil shale exploration tenement 12
holder; or 13
(ii) is someone else who has the tenement holder's consent. 14
(2) However, subsection (1) ceases to apply if-- 15
(a) the proponent of the EIS does not make a coal mining lease 16
application or an oil shale mining lease application for the land 17
within 1 year after the granting of the approval; or 18
(b) a coal mining lease application or an oil shale mining lease 19
application is made for the land within the period mentioned in 20
paragraph (a) and-- 21
(i) it does not comply with the Mineral Resources Act, 22
sections 245 and 246, and any relevant provision of 23
part 7AA of that Act; or 24
(ii) it is decided; or 25
(c) the proponent for the EIS has given written consent to the 26
petroleum lease application. 27
307 See however the Mineral Resources Act, part 7AA, division 4 (Coal mining lease
and oil shale mining lease applications in response to Petroleum and Gas
(Production and Safety) Act preference decision).
See also the Mineral Resources Act, section 318AY (Earlier petroleum lease
application).
308 Environmental Protection Act, chapter 3, part 2 (Voluntary preparation of EIS)
s 317 228 s 318
Petroleum and Gas (Production and Safety) Bill 2004
317 Proposed mining lease declared a significant project 1
(1) The ATP-related application must not be decided if-- 2
(a) before the making of the ATP-related application, a project is 3
declared a significant project under the State Development and 4
Public Works Organisation Act 1971 that is, or includes, a 5
proposed coal mining lease or oil shale mining lease for the 6
land;309 and 7
(b) the proponent for the significant project-- 8
(i) is, or includes, the coal or oil shale exploration tenement 9
holder; or 10
(ii) is someone else who has the tenement holder's consent. 11
(2) However, subsection (1) ceases to apply if-- 12
(a) the proponent of the significant project does not make a coal 13
mining lease application or an oil shale mining lease application 14
for the land within 1 year after the making of the declaration; or 15
(b) a coal mining lease application or an oil shale mining lease 16
application is made for the land within the period mentioned in 17
paragraph (a) and-- 18
(i) it does not comply with the Mineral Resources Act, 19
sections 245 and 246, and any relevant provision of 20
part 7AA of that Act; or 21
(ii) it is decided. 22
(c) the proponent of the significant project has given written consent 23
to the mining lease application. 24
Subdivision 6--Ministerial decision about whether to give any 25
preference to development of coal or oil shale resources 26
318 When preference decision is required 27
(1) This subdivision applies for the application only if the Minister is 28
satisfied of each of the following-- 29
309 See the State Development and Public Works Organisation Act 1971, section 26
(Declaration of significant project).
s 318 229 s 318
Petroleum and Gas (Production and Safety) Bill 2004
(a) there is a resource or reserve (the "deposit") of coal or oil shale 1
in the land; 2
(b) the deposit has been identified under the relevant code; 3
(c) there is an adequate level of knowledge about the deposit; 4
(d) the location, quantity, quality, geological characteristics and 5
continuity of the deposit are known, or have been estimated or 6
interpreted, from specific geological evidence and knowledge; 7
(e) there are reasonable prospects for the eventual economic mining 8
of the deposit. 9
(2) However, this subdivision does not apply if-- 10
(a) the coal or oil shale exploration tenement holder has not 11
complied with section 313(a);310 or 12
(b) the tenement holder has, under section 314,311 lodged a 13
submission stating that the holder does not wish any coal or oil 14
shale development preference for the land; or 15
(c) the tenement holder has not lodged any submission under 16
section 314 within the submission period. 17
(3) If the Minister decides that the Minister is not satisfied as mentioned 18
in subsection (1), the tenement holder must be given notice of the decision. 19
(4) In this section-- 20
"relevant code" means any of the following-- 21
(a) the document called `Australasian Code for Reporting of Mineral 22
Resources and Ore Reserves (The JORC Code)' and 23
incorporated guidelines, published by the Joint Ore Reserves 24
Committee of the Australasian Institute of Mining and 25
Metallurgy, Australian Institute of Geoscientists and Minerals 26
Council of Australia ("JORC"),312 as amended and published 27
from time to time; 28
(b) another document (however called) published by JORC that 29
amends or replaces the code mentioned in paragraph (a); 30
310 Section 313 (Obligations of coal or oil shale exploration tenement holder)
311 Section 314 (Submissions by coal or oil shale exploration tenement holder)
312 A copy of the document is available on the internet at < www.jorc.org>.
s 319 230 s 320
Petroleum and Gas (Production and Safety) Bill 2004
(c) if a document mentioned in paragraph (a) or (b) stops being 1
published--another similar document prescribed under a 2
regulation. 3
4
Note--
5
1. If the Minister is not satisfied as mentioned in subsection (1), the application can
6
be decided under chapter 2.
7
2. If this subdivision does not apply because of subsection (2), the application can be
8
decided under chapter 2 and subdivision 8.313
319 Decision about whether to give any preference to development 9
of coal or oil shale 10
(1) Subject to section 320, the Minister must decide whether to-- 11
(a) grant the petroleum lease application; or 12
(b) give any coal or oil shale development preference for the land, in 13
whole or part. 14
(2) The decision under subsection (1) is the "preference decision". 15
(3) In making the preference decision the CSG assessment criteria must 16
be considered. 17
(4) If, under the Mineral Resources Act, part 7AA, division 2, 18
subdivision 6,314 petroleum development preference has been given for the 19
land, the preference decision is taken to be not to give coal or oil shale 20
development preference for any of the land. 21
320 Reference to tribunal before making preference decision 22
(1) Before making the preference decision-- 23
(a) the chief executive must refer the application to the tribunal for it 24
to make recommendations to the Minister about what the 25
preference decision should be; and 26
(b) the Minister must consider the recommendations. 27
313 Chapter 2 (Petroleum tenures and related matters) and subdivision 8 (Deciding
petroleum lease)
314 Mineral Resources Act, part 7AA, division 2, subdivision 6 (Ministerial decision
about whether to give any preference to petroleum development)
s 321 231 s 321
Petroleum and Gas (Production and Safety) Bill 2004
(2) The referral must be made by filing a notice in the approved form 1
with the registrar of the tribunal. 2
(3) The referral starts a proceeding before the tribunal for it to make the 3
recommendations. 4
(4) The parties to the proceeding are the applicant and the coal or oil 5
shale exploration tenement holder. 6
(5) In making the recommendations-- 7
(a) the CSG assessment criteria must be considered; and 8
(b) section 321 applies as if a reference in the section-- 9
(i) to the Minister were a reference to the tribunal; and 10
(ii) to coal or oil shale development preference were a reference 11
to recommending coal or oil shale development preference. 12
(6) The recommendations may also include recommendations about the 13
conditions and term of the petroleum lease. 14
321 Restrictions on giving preference 15
(1) Coal or oil shale development preference, in whole or part, may be 16
given only under this section. 17
(2) Coal or oil shale development preference may be given only if the 18
Minister is satisfied of each of the following-- 19
(a) on the basis of the submissions and the results of consultation 20
lodged under sections 310 and 314,315 it is either not 21
commercially or technically feasible or it is unlikely that the 22
applicant and the coal or oil shale exploration tenement holder 23
are able to make a future coordination arrangement about-- 24
(i) petroleum production under the proposed petroleum lease; 25
and 26
(ii) coal or oil shale mining and any incidental coal seam gas 27
mining under any future mining lease for the land; 28
315 Sections 310 (Applicant's obligations) and 314 (Submissions by coal or oil shale
exploration tenement holder)
s 322 232 s 322
Petroleum and Gas (Production and Safety) Bill 2004
(b) that, having regard to the public interest, the public interest in the 1
following would be best served by not granting a petroleum lease 2
to the petroleum lease applicant first-- 3
(i) petroleum production; 4
(ii) coal or oil shale mining and any incidental coal seam gas 5
mining; 6
(c) if the coal or oil shale is a brownfield coal or oil shale resource-- 7
(i) it is critical to the continuance of an existing mining 8
operation or the efficient use of infrastructure related to the 9
operation; and 10
(ii) the applicant's proposed development plan is incompatible 11
with the future development of the resource; 12
(d) if the coal or oil shale is a greenfield coal or oil shale resource-- 13
(i) it is commercially viable; and 14
(ii) coal or oil shale mining will, if a mining lease is granted to 15
the tenement holder, start within 2 years after the grant of 16
the lease. 17
(3) In this section-- 18
"brownfield coal or oil shale resource" means coal or oil shale associated 19
with, or adjacent to, an existing mining operation under the Mineral 20
Resources Act. 21
"greenfield coal or oil shale resource" means coal or oil shale that is not 22
associated with, or adjacent to, an existing mining operation under the 23
Mineral Resources Act. 24
Subdivision 7--Process if preference decision is to give any preference to 25
development of coal or oil shale resources 26
322 Application of sdiv 7 27
This subdivision applies only if, under section 318,316 a preference 28
decision is required and that decision was to give coal or oil shale 29
development preference for the whole or part of the land. 30
316 Section 318 (When preference decision is required)
s 323 233 s 325
Petroleum and Gas (Production and Safety) Bill 2004
323 Notice to applicant and coal or oil shale exploration tenement 1
holder 2
(1) The chief executive must give the applicant and the coal or oil shale 3
exploration tenement holder notice of the preference decision. 4
(2) The notice must invite the tenement holder to, within 6 months after 5
the giving of the notice (the "mining lease application period"), apply for 6
a mining lease for-- 7
(a) if the preference is for all of the land--all of the land; or 8
(b) if the preference is for part of the land--that part. 9
324 Mining lease application for all of the land 10
(1) This section applies if the preference is for all of the land and, within 11
the mining lease application period, the coal or oil shale exploration 12
tenement holder applies for a mining lease for all of the land. 13
(2) A further step can not be taken to decide the ATP-related application 14
until after the mining lease application has been decided.317 15
(3) If the decision on the mining lease application is to grant a mining 16
lease for all of the land, the ATP-related application is taken to have lapsed, 17
unless the coal or oil shale exploration tenement holder has consented in 18
writing to the application. 19
325 Mining lease application for part of the land 20
(1) This section applies if the coal or oil shale exploration tenement 21
holder applies for a mining lease for part of the land within the mining 22
lease application period. 23
(2) The person who made the ATP-related application may amend it so 24
that a petroleum lease is only sought for all or part of the rest of the land. 25
317 See however the Mineral Resources Act, part 7AA, division 4 (Coal mining lease
and oil shale mining lease applications in response to Petroleum and Gas
(Production and Safety) Act preference decision).
s 326 234 s 327
Petroleum and Gas (Production and Safety) Bill 2004
(3) Unless the amendment is made, a further step can not be taken to 1
decide the ATP-related application until after the mining lease application 2
has been decided.318 3
(4) If-- 4
(a) the amendment has not been made; and 5
(b) the decision on the mining lease application is to grant a mining 6
lease for part of the land; 7
the person who made the ATP-related application may amend it so that a 8
petroleum lease is only sought for all or part of the rest of the land.319 9
326 No mining lease application 10
If the coal or oil shale exploration tenement holder does not apply for a 11
mining lease for any of the land within the mining lease application period, 12
the ATP-related application may be decided. 13
Subdivision 8--Deciding petroleum lease 14
327 Application of sdiv 8 15
This subdivision applies if-- 16
(a) the coal or oil shale exploration tenement holder has not 17
complied with section 313(a);320 or 18
(b) the tenement holder has, under section 314,321 lodged a 19
submission stating that the holder does not wish any coal or oil 20
shale development preference for the land; or 21
(c) the authority to prospect holder has not lodged any submission 22
under section 313 within the submission period; or 23
318 See however the Mineral Resources Act, part 7AA, division 4 (Coal mining lease
and oil shale mining lease applications in response to Petroleum and Gas
(Production and Safety) Act preference decision).
319 If the petroleum lease application is not amended, see section 350 (Additional
requirements for grant).
320 Section 313 (Obligations of coal or oil shale exploration tenement holder)
321 Section 314 (Submissions by coal or oil shale exploration tenement holder)
s 328 235 s 329
Petroleum and Gas (Production and Safety) Bill 2004
(d) under section 318,322 a preference decision is required and-- 1
(i) the preference decision was not to give coal or oil shale 2
development preference for any of the land; or 3
(ii) the preference decision was to give coal or oil shale 4
development preference for the whole or part of the land 5
and, after subdivision 7 is complied with, the Minister 6
decides to grant a petroleum lease for the land. 7
328 Additional criteria for deciding provisions of petroleum lease 8
(1) In deciding the provisions of the petroleum lease the CSG 9
assessment criteria and the affect of the petroleum lease on safe and 10
efficient mining of coal or oil shale under any adjacent lease must also be 11
considered. 12
(2) Subsection (1) does not limit other matters that must be considered 13
under chapter 2.323 14
329 Power to impose relinquishment condition 15
(1) In deciding the provisions of the petroleum lease, a condition may be 16
imposed that its holder is required, by a notice lodged at the following 17
office, to relinquish a stated part or percentage of its area at stated times or 18
intervals-- 19
(a) the office of the department for lodging relinquishment notices, 20
as stated in a gazette notice by the chief executive; 21
(b) if no office is gazetted under paragraph (a)--the office of the 22
chief executive.324 23
(2) A condition mentioned in subsection (1) is a "relinquishment 24
condition".325 25
(3) This section does not limit any power under chapter 2 to impose 26
conditions on the petroleum lease. 27
322 Section 318 (When preference decision is required)
323 See sections 104 to 123 and 133 and 134.
324 See however section 368 (Cessation of relinquishment condition for area not
overlapping with coal or oil shale exploration tenement).
325 See also section 367 (Requirement for giving of copy of relinquishment report).
s 330 236 s 331
Petroleum and Gas (Production and Safety) Bill 2004
(4) A relinquishment under a relinquishment condition takes effect on 1
the day after the notice is lodged. 2
330 Publication of outcome of application 3
(1) After the Minister decides whether to grant the petroleum lease, the 4
chief executive must publish a notice about the outcome of the application 5
in the gazette or another publication the Minister considers appropriate. 6
(2) The notice must state-- 7
(a) whether the Minister decided to grant or not to grant the 8
petroleum lease; and 9
(b) if the decision was to grant--any conditions of the petroleum 10
lease other than the mandatory conditions; and 11
(c) if, under section 318,326 a preference decision was required and 12
that decision was to give coal or oil shale development 13
preference for the whole or part of the land--the decision, and 14
the reasons for it. 15
(3) However, if the chief executive considers that information in any 16
condition is commercial-in-confidence, the chief executive may, instead of 17
publishing the condition, publish a statement about the intent of the 18
condition. 19
Division 2--Petroleum lease application by or jointly with, or with the 20
consent of, coal or oil shale exploration tenement holder 21
331 Application of div 2 22
(1) This division applies if-- 23
(a) an authority to prospect holder wishes to make an ATP-related 24
application for all or part of land in the area of a coal or oil shale 25
exploration tenement; and 26
(b) the tenement holder has consented to the making of the 27
application. 28
(2) This division also applies if-- 29
326 Section 318 (When preference decision is required)
s 332 237 s 333
Petroleum and Gas (Production and Safety) Bill 2004
(a) land is in the area of a coal or oil shale exploration tenement; and 1
(b) a person as follows wishes to apply for a petroleum lease for all 2
or part of the land-- 3
(i) the coal or oil shale exploration tenement holder; 4
(ii) a person who wishes to make the application jointly with 5
the holder; and 6
(c) a person mentioned in paragraph (b) has made a coal mining 7
lease application or oil shale mining lease application for the 8
land and the application is not for a specific purpose mining 9
lease; and 10
(d) the purpose of the proposed petroleum lease application is to 11
allow the use of incidental coal seam gas for a purpose other than 12
mining under the proposed mining lease.327 13
332 Right to apply for petroleum lease 14
(1) The person may apply for a petroleum lease for all or part of the land. 15
(2) The area of the proposed petroleum lease need not comply with 16
section 168(4) to (8).328 17
333 Requirements for making application 18
(1) The petroleum lease application must-- 19
(a) comply with the requirements under section 118329 for making an 20
ATP-related application; and 21
(b) include-- 22
(i) a CSG statement;330 and 23
(ii) other information that addresses the CSG assessment 24
criteria. 25
327 See the Mineral Resources Act, section 318CN (Use that may be made under mining
lease of incidental coal seam gas).
328 Section 168 (Area of petroleum lease)
329 Section 118 (Requirements for making ATP-related application)
330 See section 306 (Content requirements for CSG statement).
s 334 238 s 335
Petroleum and Gas (Production and Safety) Bill 2004
(2) The proposed initial development plan required under section 118 1
must, as well as complying with the initial development plan requirements, 2
also comply with part 6, division 1.331 3
334 No calls for tenders after application made 4
A call for tenders for a petroleum lease can not be made for the land if 5
the petroleum lease application has not been decided. 6
335 Requirement to split application if it relates to coal or oil 7
shale mining tenements not held by the same person 8
(1) This section applies if the ATP-related application is-- 9
(a) for land in the area of each of the following-- 10
(i) the coal or oil shale exploration tenement (the "exploration 11
tenement part"); 12
(ii) a coal mining lease or oil shale mining lease (the "mining 13
lease part"); and 14
(b) the exploration tenement and the mining lease are not held by the 15
same person.332 16
(2) The application must be treated as if it were separate applications for 17
the exploration tenement part and the mining lease part. 18
(3) The application for the exploration tenement part must be decided 19
under this division. 20
(4) The application for the mining lease part must be decided under 21
part 3.333 22
(5) Despite subsections (2) to (4) and any other provision of this part, no 23
step may be taken in relation to deciding the applications until the relevant 24
requirements for making them have been complied with.334 25
331 Part 6 (Additional provisions for development plans), division 1 (Additional
requirements for proposed initial development plans)
332 If the coal or oil shale exploration tenement and the coal mining lease or oil shale
mining lease are held by the same person, see section 344(3) (Application of div 2).
333 Part 3 (Obtaining petroleum lease over land in area of coal mining lease or oil shale
mining lease)
334 For the applicants' power to amend, see section 844 (Amending applications).
s 336 239 s 339
Petroleum and Gas (Production and Safety) Bill 2004
(6) The applicant may amend each application to comply with the 1
requirements. 2
336 Power to split application if it includes other land 3
(1) This section applies if the petroleum lease application includes land 4
(the "other part") not in the area of a coal or oil shale mining tenement. 5
(2) The Minister may decide to treat the application to the extent it 6
applies to the other part as if it were a separate petroleum lease application. 7
(3) The separate application must be decided under chapter 2.335 8
(4) Despite subsections (2) and (3) and any other provision of this part, 9
no step may be taken in relation to the deciding of the applications until the 10
relevant requirements for making them have been complied with.336 11
337 Power to split application at applicant's request 12
(1) The Minister may, at the applicant's request, decide to treat the 13
application as if it were separate petroleum lease applications to allow them 14
to be decided under this chapter or chapter 2, as the Minister considers 15
appropriate. 16
(2) However, no step may be taken in relation to the deciding of the 17
applications until the relevant requirements for making them have been 18
complied with. 19
338 Priority for earlier mining lease application or proposed 20
application 21
Division 1, subdivision 5,337 applies for the petroleum lease application. 22
339 Priority for deciding earlier petroleum lease application 23
If, before the making of the petroleum lease application-- 24
335 Chapter 2 (Petroleum tenures and related matters)
336 For the applicants' power to amend, see section 844 (Amending applications).
337 Division 1, subdivision 5 (Priority for earlier coal mining lease or oil shale mining
lease application or proposed application)
s 340 240 s 340
Petroleum and Gas (Production and Safety) Bill 2004
(a) someone else has applied for a petroleum lease for the whole or 1
part of the proposed area of the petroleum; and 2
(b) the other application complies with section 305;338 3
the Minister must decide the other application first unless the petroleum 4
lease applicant agrees otherwise. 5
340 Right to grant if particular requirements met 6
(1) This section applies subject to sections 337 and 339. 7
(2) If the application is an ATP-related application, the Minister must 8
grant the petroleum lease if-- 9
(a) the applicant is an eligible person; and 10
(b) the coal or oil shale exploration tenement holder has consented to 11
the grant; and 12
(c) the requirements for grant have been complied with. 13
(3) If the application is not an ATP-related application, the Minister must 14
grant the petroleum lease if-- 15
(a) the applicant is an eligible person; and 16
(b) either-- 17
(i) the applicant has been granted a coal mining lease or oil 18
shale mining lease over the proposed area of the petroleum 19
lease; or 20
(ii) any preference decision required under the Mineral 21
Resources Act for the coal mining lease or oil shale mining 22
lease application339 has been made and, under section 271340 23
of that Act, a decision has been made to recommend the 24
applicant be granted a coal mining lease or oil shale mining 25
lease for the land; and 26
(c) the Minister is satisfied-- 27
338 Section 305 (Additional requirements for making application)
339 For when a preference decision under Mineral Resources Act is required, see
section 318BA (When preference decision is required) of that Act.
340 Mineral Resources Act, section 271 (Minister to consider recommendation made in
respect of application for grant of mining lease)
s 341 241 s 341
Petroleum and Gas (Production and Safety) Bill 2004
(i) the requirements for grant, other than the requirement under 1
section 121(1)(c),341 have been complied with; and 2
(ii) the conditions of the coal or oil shale exploration tenement 3
have been substantially complied with. 4
5
Note--
6
If the area of the petroleum lease includes overlapping ATP land, the authority holder's
7
written agreement is needed to carry out any authorised activity under the lease other
8
than an activity related to incidental coal seam gas. See part 5, division 1.342
341 Provisions of petroleum lease 9
(1) If the petroleum lease application is granted, section 123343 applies as 10
if the application were an ATP-related application. 11
(2) In deciding the provisions of the petroleum lease, the following 12
matters must also be considered-- 13
(a) the provisions recommended for the relevant mining lease; 14
(b) the development plan for the relevant mining lease; 15
(c) if the area of the petroleum lease will include land ("overlapping 16
ATP land") in the area of, or excluded land for, an authority to 17
prospect held by someone other than the petroleum lease 18
holder-- 19
(i) the legitimate business interests, rights and future 20
development proposals of the authority to prospect holder; 21
and 22
(ii) the likelihood of coordinated production of petroleum in 23
relation to the overlapping ATP land being subject to an 24
agreement under section 364(2).344 25
341 Section 121 (Requirements for grant)
342 Part 5, division 1 (Restriction on authorised activities for particular petroleum
leases)
343 Section 123 (Provisions of petroleum lease)
344 Section 364 (Restriction on authorised activities on overlapping ATP land)
s 342 242 s 342
Petroleum and Gas (Production and Safety) Bill 2004
(3) A relinquishment condition may be imposed.345 1
(4) Subsection (3) does not limit any power under chapter 2 to impose 2
conditions on the petroleum lease. 3
Division 3--Petroleum lease applications in response to Mineral 4
Resources Act preference decision 5
342 Additional ground for refusing application 6
(1) This section applies if-- 7
(a) a petroleum lease application is made in response to an invitation 8
given under the Mineral Resources Act, section 318BG;346 and 9
(b) the application is made within 6 months after the giving of the 10
invitation.347 11
(2) The Minister may decide to refuse the application if satisfied the 12
applicant has not, in a timely manner-- 13
(a) taken any step in relation to the application required of the 14
applicant under chapter 2 or this chapter; or 15
(b) satisfied the Minister about a matter that, under chapter 2 or this 16
chapter, is required for the granting of the application.348 17
(3) Subsection (2) does not limit another ground for refusing the 18
application under chapter 2, this chapter or section 843.349 19
345 See however section 368 (Cessation of relinquishment condition for area not
overlapping with coal or oil shale exploration tenement).
346 Mineral Resources Act, section 318BG (Notice to applicant and authority to
prospect holder)
347 If the application is not made within the 6 months, see the Mineral Resources Act,
section 318BJ (No petroleum lease application).
348 See section 340 (Right to grant if particular requirements met).
349 Chapter 2 (Petroleum tenures and related matters)
Section 843 (Additional information may be required about application)
s 343 243 s 344
Petroleum and Gas (Production and Safety) Bill 2004
PART 3--OBTAINING PETROLEUM LEASE OVER 1
LAND IN AREA OF COAL MINING LEASE OR OIL 2
SHALE MINING LEASE 3
Division 1--Exclusion of power to call for tenders 4
343 Exclusion 5
The Minister can not make a call for tenders for a petroleum lease for 6
land in the area of a coal mining lease or oil shale mining lease. 7
Division 2--Petroleum lease application other than by or jointly with 8
coal mining lease holder or oil shale mining lease holder 9
344 Application of div 2 10
(1) This division applies if a person wishes to make an application for a 11
petroleum lease for all or part of land in the area of a coal mining lease or 12
oil shale mining lease. 13
(2) However, this division does not apply if-- 14
(a) the person is the mining lease holder; or 15
(b) the application is to be made jointly with the holder.350 16
(3) If-- 17
(a) the land is also in the area of a coal or oil shale exploration 18
tenement; and 19
(b) the same person holds the mining lease and the exploration 20
tenement; 21
a reference in this division to the mining lease holder includes a reference 22
to the exploration tenement holder.351 23
350 See division 3 (Petroleum lease application by or jointly with coal mining lease
holder or oil shale mining lease holder).
351 If the coal mining lease or oil shale mining lease and the coal or oil shale exploration
tenement are held by different persons, see section 307 (Requirement to split
application if it relates to coal mining tenements or oil shale mining tenements not
held by the same person).
s 345 244 s 348
Petroleum and Gas (Production and Safety) Bill 2004
345 Additional requirements for making application 1
(1) The petroleum lease application must-- 2
(a) comply with the requirements under section 118 for making an 3
ATP-related application; and 4
(b) include a CSG statement.352 5
(2) The proposed initial development plan required under section 118 6
must, as well as complying with the initial development plan requirements, 7
also comply with part 6, division 1.353 8
346 Power to split application if it includes other land 9
(1) This section applies if the application includes land (the "other 10
part") not in the area of a coal or oil shale exploration tenement. 11
(2) The Minister may decide to treat the application to the extent it 12
applies to the other part as if it were a separate petroleum lease application. 13
(3) The separate application must be decided under chapter 2. 14
347 Power to split application at applicant's request 15
(1) The Minister may, at the applicant's request, decide to treat the 16
application as if it were separate petroleum lease applications to allow them 17
to be decided under this chapter or chapter 2, as the Minister considers 18
appropriate. 19
(2) However, no step may be taken in relation to the deciding of the 20
applications until the relevant requirements for making them have been 21
complied with. 22
348 Notice to coal mining lease holder or oil shale mining lease holder 23
The applicant must, within 10 business days after making the 24
application, give the coal mining lease holder or oil shale mining lease 25
352 See section 306 (Content requirements for CSG statement).
353 Part 6 (Additional provisions for development plans), division 1 (Additional
requirements for proposed initial development plans)
s 349 245 s 350
Petroleum and Gas (Production and Safety) Bill 2004
holder a copy of the application, other than any part of the application that 1
relates to the capability criteria.354 2
349 Coal mining lease holder's or oil shale mining lease holder's 3
obligation to negotiate 4
(1) The coal mining lease holder or oil shale mining lease holder must, 5
after receiving the copy of the application, make reasonable attempts to 6
reach a coordination arrangement with the applicant about the following 7
matters that provides the best resource use outcome without significantly 8
affecting the parties' rights or interests-- 9
(a) petroleum production under the proposed petroleum lease; 10
(b) coal or oil shale mining and any incidental coal seam gas mining 11
under the mining lease.355 12
(2) However, the obligation under subsection (1) applies only to the 13
extent that a coordination arrangement is commercially and technically 14
feasible for the mining lease holder.356 15
350 Additional requirements for grant 16
(1) The application may be granted only if-- 17
(a) the applicant has negotiated, with the coal mining lease holder or 18
oil shale mining lease holder, a proposed coordination 19
arrangement (a "relevant arrangement") about the following 20
matters-- 21
(i) petroleum production under the proposed petroleum lease; 22
(ii) coal or oil shale mining and any incidental coal seam gas 23
under the mining lease; and 24
(b) the Minister has approved the relevant arrangement; and 25
354 See also part 8 (Confidentiality of information).
355 For the extent to which coal seam gas production is permitted under the coal mining
lease or oil shale mining lease, see the Mineral Resources Act, part 7AA, division 8,
subdivision 1 (Entitlement to coal seam gas).
356 See also part 8 (Confidentiality of information).
s 351 246 s 351
Petroleum and Gas (Production and Safety) Bill 2004
(c) the applicant has made a safety management plan for all 1
operating plant on, or proposed to be on, the area of the proposed 2
petroleum lease;357 and 3
(d) the mining lease holder has lodged a notice that the holder has 4
agreed to the plan. 5
(2) The Minister may decide to refuse the application if-- 6
(a) the Minister is satisfied the applicant and the petroleum lease 7
holder have, as required under section 349, made reasonable 8
attempts to reach a relevant arrangement; and 9
(b) either-- 10
(i) the mining lease holder has lodged a notice stating there are 11
no reasonable prospects of a relevant arrangement being 12
made; or 13
(ii) a relevant arrangement has not been lodged for approval by 14
the Minister and the Minister considers the applicant and 15
the mining lease holder have had a reasonable opportunity 16
to make a relevant arrangement. 17
(3) A notice under this section must be lodged at-- 18
(a) the office of the department for lodging the notice, as stated in a 19
gazette notice by the chief executive; or 20
(b) if no office is gazetted under paragraph (a)--the office of the 21
chief executive. 22
Division 3--Petroleum lease application by or jointly with coal mining 23
lease holder or oil shale mining lease holder 24
351 Application of div 3 25
This division applies if a person as follows wishes to apply for a 26
petroleum lease for all or part of the land in the area of a coal mining lease 27
or oil shale mining lease that is not a specific purpose mining lease-- 28
(a) the coal mining lease holder or oil shale mining lease holder; 29
357 See also section 386 (Consultation with particular coal mining tenement or oil shale
mining tenement holders required before making plan).
s 352 247 s 354
Petroleum and Gas (Production and Safety) Bill 2004
(b) a person who wishes to make the application jointly with the 1
holder. 2
352 Right to apply for petroleum lease 3
(1) The person may apply for a petroleum lease for all or part of the land. 4
(2) The area of the proposed petroleum lease need not comply with 5
section 168(4) to (8).358 6
353 Requirements for making application 7
(1) The petroleum lease application must-- 8
(a) comply with the requirements under section 118 for making an
359
9
ATP-related application; and 10
(b) include a CSG statement.360 11
(2) The proposed initial development plan required under section 118 12
must, as well as complying with the initial development plan requirements, 13
also comply with part 6, division 1.361 14
354 Power to split application if it includes other land 15
(1) This section applies if petroleum lease application includes land 16
(the "other part") not in the area of a coal or oil shale mining tenement. 17
(2) The Minister may decide to treat the application to the extent it 18
applies to the other part as if it were a separate petroleum lease application. 19
(3) The separate application must be decided under chapter 2.362 20
(4) Despite subsections (2) and (3) and any other provision of this part, 21
no step may be taken in relation to deciding the applications until the 22
relevant requirements for making them have been complied with.363 23
358 Section 168 (Area of petroleum lease)
359 Section 118 (Requirements for making ATP-related application)
360 See section 306 (Content requirements for CSG statement).
361 Part 6 (Additional provisions for development plans), division 1 (Additional
requirements for proposed initial development plans)
362 Chapter 2 (Petroleum tenures and related matters)
363 For the applicants' power to amend, see section 844 (Amending applications).
s 355 248 s 357
Petroleum and Gas (Production and Safety) Bill 2004
355 Power to split application at applicant's request 1
(1) The Minister may, at the applicant's request, decide to treat the 2
petroleum lease application as if it were separate petroleum lease 3
applications to allow them to be decided under this chapter or chapter 2, as 4
the Minister considers appropriate. 5
(2) However, no step may be taken in relation to the deciding of the 6
applications until the relevant requirements for making them have been 7
complied with. 8
356 Right to grant if particular requirements met 9
The Minister must grant the petroleum lease if-- 10
(a) the applicant is an eligible person; and 11
(b) the Minister is satisfied-- 12
(i) the requirements for grant, other than the requirement under 13
section 121(1)(c),364 have been complied with; and 14
(ii) the conditions of the coal or oil shale exploration tenement 15
have been substantially complied with. 16
17
Note--
18
If the area of the petroleum lease includes overlapping ATP land, the authority holder's
19
written agreement is needed to carry out any authorised activity under the lease other
20
than an activity related to incidental coal seam gas. See part 5, division 1.365
357 Provisions of petroleum lease 21
(1) Section 123366 applies to the granting of the lease as if the petroleum 22
lease application were an ATP-related application. 23
(2) In deciding the provisions of the petroleum lease, the following 24
matters must also be considered-- 25
(a) the conditions of the relevant mining lease; 26
(b) the development plan for the relevant mining lease; 27
364 Section 121 (Requirements for grant)
365 Part 5, division 1 (Restriction on authorised activities for particular petroleum
leases)
366 Section 123 (Provisions of petroleum lease)
s 358 249 s 358
Petroleum and Gas (Production and Safety) Bill 2004
(c) if the area of the petroleum lease will include overlapping ATP 1
land-- 2
(i) the legitimate business interests, rights and future 3
development proposals of the authority to prospect holder; 4
and 5
(ii) the likelihood of coordinated production of petroleum in 6
relation to the overlapping ATP land being subject to an 7
agreement under section 364(2).367 8
(3) A relinquishment condition may be imposed.368 9
(4) Subsection (3) does not limit any power under chapter 2 to impose 10
conditions on the petroleum lease. 11
PART 4--ADDITIONAL PROVISIONS FOR 12
AUTHORITIES TO PROSPECT AND DATA 13
ACQUISITON AUTHORITIES 14
Division 1--Grant of authority to prospect in area of coal or oil shale 15
exploration tenement 16
358 Provisions for authority to prospect 17
(1) The Mineral Resources Act does not limit or otherwise affect the 18
power under this Act to grant an authority to prospect over land 19
(the "overlapping land") in the area of a coal or oil shale exploration 20
tenement. 21
(2) However, an authorised activity for the authority to prospect can not 22
be carried out on the overlapping land if-- 23
(a) carrying it out adversely affects the carrying out of an authorised 24
activity for the coal or oil shale exploration tenement; and 25
367 Section 364 (Restriction on authorised activities on overlapping ATP land)
368 See however section 368 (Cessation of relinquishment condition for area not
overlapping with coal or oil shale exploration tenement).
s 359 250 s 360
Petroleum and Gas (Production and Safety) Bill 2004
(b) the authorised activity for the coal or oil shale exploration 1
tenement has already started. 2
Division 2--Restriction on authorised activities on coal mining lease or 3
oil shale mining lease land 4
359 Application of div 2 5
This division applies if land in the area of a coal mining lease or oil shale 6
mining lease is-- 7
(a) in the area of an authority to prospect; or 8
(b) subject to a data acquisition authority. 9
360 Restriction 10
(1) An authorised activity for the authority may be carried out on the 11
land only if-- 12
(a) the mining lease holder has agreed in writing to the carrying out 13
of the activity; and 14
(b) a copy of the agreement has been lodged at-- 15
(i) the office of the department for lodging the agreement, as 16
stated in a gazette notice by the chief executive; or 17
(ii) if no office is gazetted under subparagraph (i)--the office of 18
the chief executive; and 19
(c) the agreement is still in force.369 20
(2) Subsection (1) does not apply, or ceases to apply, if the same person 21
holds the authority and the mining lease. 22
369 See also the Mineral Resources Act, section 403 (Offences regarding land subject to
mining claim or mining lease).
s 361 251 s 363
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Exception to automatic area reduction of authority to 1
prospect on grant of petroleum lease 2
361 Exception 3
Section 101 does not apply for an authority to prospect if the petroleum 4
lease is granted under part 2, division 2, or part 3, division 3.370 5
Division 4--Conditions 6
362 Notice to coal or oil shale exploration tenement holders and 7
applicants 8
(1) This section applies if, when an authority to prospect is granted, land 9
in the area of the authority is in the area of a coal or oil shale exploration 10
tenement or a proposed area under a coal or oil shale exploration tenement 11
application. 12
(2) It is a condition of the authority that its holder must, within 13
20 business days after the holder receives notice of the grant, give the 14
tenement holder or the applicant notice stating-- 15
(a) that the authority has been granted; and 16
(b) the authority holder's name; and 17
(c) the term of the authority. 18
363 Compliance with obligations under Mineral Resources Act 19
If an obligation under the Mineral Resources Act, section 318AW371 20
or 318DB,372 applies to an authority to prospect holder, it is a condition of 21
the authority that the holder must comply with the obligation. 22
370 Section 101 (Area of authority to prospect reduced on grant of petroleum lease)
Part 2, division 2 (Petroleum lease application by or jointly with, or with the consent
of, coal or oil shale exploration tenement holder)
Part 3, division 3 (Petroleum lease application by or jointly with coal mining lease
holder or oil shale mining lease holder)
371 Mineral Resources Act, section 318AW (Authority to prospect holder's obligations)
372 Mineral Resources Act, section 318DB (Authority to prospect holder's obligation to
negotiate)
s 364 252 s 364
Petroleum and Gas (Production and Safety) Bill 2004
PART 5--ADDITIONAL PROVISIONS FOR 1
PETROLEUM LEASES 2
Division 1--Restriction on authorised activities for particular petroleum 3
leases 4
364 Restriction on authorised activities on overlapping ATP land 5
(1) This section applies if-- 6
(a) the area of a petroleum lease includes overlapping ATP land; and 7
8
Note--
9
Overlapping ATP land includes land in the area of the lease that is excluded
10
land for the authority to prospect. See sections 341(2)(c) and 357(2)(c).373
(b) the petroleum lease was, under section 340 or 356,374 granted to 11
someone other than the relevant authority to prospect holder. 12
(2) The petroleum lease holder may carry out an authorised activity for 13
the petroleum lease on the overlapping ATP land only if-- 14
(a) the authority to prospect holder has agreed in writing to the 15
carrying out of the activity and-- 16
(i) a copy of the agreement has been lodged at the relevant 17
office; and 18
(ii) the agreement is still in force; or 19
(b) the activity relates to incidental coal seam gas mined in the area 20
of a coal mining lease or oil shale mining lease the area of which 21
includes the overlapping ATP land.375 22
(3) In this section-- 23
"relevant office" means-- 24
373 Sections 341 and 357 (Provisions of petroleum lease)
374 Section 340 (Right to grant if particular requirements met) or 356 (Right to grant if
particular requirements met)
375 See also section 874 (Substituted restriction for petroleum leases relating to mineral
hydrocarbon mining leases).
s 365 253 s 365
Petroleum and Gas (Production and Safety) Bill 2004
(a) the office of the department for lodging agreements mentioned in 1
subsection (2)(a), as stated in a gazette notice by the chief 2
executive; or 3
(b) if no office is gazetted under paragraph (a)--the office of the 4
chief executive. 5
Division 2--Conditions 6
365 Continuing requirement for coordination arrangement for 7
particular petroleum leases 8
(1) This section applies if-- 9
(a) a petroleum lease is granted over land in the area of a coal mining 10
lease or oil shale mining lease and the application for the 11
petroleum lease was not made by or jointly with the mining lease 12
holder; or 13
(b) a petroleum lease holder is a party to a coordination arrangement 14
mentioned in section 379.376 15
(2) It is a condition of the petroleum lease that-- 16
(a) its holder must continue to be party to a relevant coordination 17
arrangement; and 18
(b) authorised activities for the petroleum lease must not be carried 19
out if there is no relevant coordination arrangement.377 20
(3) In this section-- 21
"relevant coordination arrangement" means a coordination arrangement 22
with the mining lease holder about-- 23
(a) petroleum production under the petroleum lease; and 24
(b) coal or oil shale mining and any incidental coal seam gas mining 25
under the mining lease. 26
376 Section 379 (Requirement for coordination arrangement to transfer petroleum lease
in tenure area of mining lease)
377 For subleases under a coordination arrangement, see section 238 (Subleasing of
1923 Act lease provided for under coordination arrangement).
s 366 254 s 368
Petroleum and Gas (Production and Safety) Bill 2004
366 Compliance with obligation to negotiate with coal or oil shale 1
mining lease applicant 2
If the obligation under the Mineral Resources Act, section 318CA,378 3
applies to a petroleum lease holder, it is a condition of the lease that the 4
holder must comply with the obligation. 5
367 Requirement for giving of copy of relinquishment report 6
(1) This section applies if-- 7
(a) a petroleum lease holder has, under section 545,379 given a report 8
about a relinquishment of part of the area of the lease; and 9
(b) immediately before the relinquishment, the part included land in 10
the area of a coal or oil shale exploration tenement. 11
(2) The petroleum lease holder must give a copy of the report to-- 12
(a) the coal or oil shale exploration tenement holder; and 13
(b) anyone else who has applied for a mining lease for the part. 14
Maximum penalty--200 penalty units. 15
368 Cessation of relinquishment condition for area not overlapping 16
with coal or oil shale exploration tenement 17
If-- 18
(a) a petroleum lease contains a relinquishment condition; and 19
(b) all or part of the area of the lease ceases to be in the area of a coal 20
or oil shale exploration tenement (the "relevant land"); 21
the condition ceases to apply for the relevant land. 22
378 Mineral Resources Act, section 318CA (Petroleum lease holder's obligation to
negotiate)
379 Section 545 (Relinquishment report by tenure holder)
s 369 255 s 371
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Amendment of relinquishment condition by application 1
Subdivision 1--Preliminary 2
369 Application of div 3 3
This division applies if a petroleum lease contains a relinquishment 4
condition and all or part of the area of the lease is in the area of a coal or oil 5
shale exploration tenement. 6
Subdivision 2--Making application to amend relinquishment condition 7
370 Conditions for applying to amend 8
(1) The petroleum lease holder may apply for the Minister to amend the 9
condition if the applicant has, before making the application-- 10
(a) made reasonable attempts to consult with the coal or oil shale 11
exploration tenement holder about-- 12
(i) the proposed amendment; and 13
(ii) a proposed later development plan for the lease; and 14
(b) changed the proposed amendment and the proposed later 15
development plan to give effect to any reasonable proposal by the 16
tenement holder that will optimise-- 17
(i) petroleum production under the amended petroleum lease; 18
and 19
(ii) coal, oil shale or incidental coal seam gas mining under any 20
future mining lease over the land. 21
(2) However, subsection (1)(b) applies only to the extent the provisions 22
are commercially and technically feasible for the applicant. 23
371 Obligation of coal or oil shale exploration tenement holder to 24
negotiate 25
The coal or oil shale exploration tenement holder must, if asked by the 26
petroleum lease holder, make reasonable attempts to reach an agreement 27
with the petroleum lease holder about the matters mentioned in 28
s 372 256 s 372
Petroleum and Gas (Production and Safety) Bill 2004
section 370(1)(b) that provides the best resource use outcome without 1
significantly affecting the parties' rights or interests.380 2
372 Requirements for making application 3
(1) The application must-- 4
(a) be in the approved form; and 5
(b) be lodged at-- 6
(i) the office of the department for lodging the application, as 7
stated in a gazette notice by the chief executive; or 8
(ii) if no office is gazetted under subparagraph (i)--the office 9
stated in the approved form; or 10
(iii) otherwise--the office of the chief executive; and 11
(c) state whether or not the development plan for the petroleum lease 12
has been complied with; and 13
(d) if the development plan for the lease has not been complied 14
with--state details of, and the reasons for, each noncompliance; 15
and 16
(e) include a CSG statement; and 17
(f) include a proposed later development plan for the lease as 18
amended under section 370; and 19
(g) include a statement about each of the following-- 20
(i) the details of the consultation carried out under 21
section 370(1)(a); 22
(ii) the results of the consultation; 23
(iii) whether the proposed development plan includes all 24
provisions proposed by the coal or oil shale exploration 25
tenement holder under section 370(1)(b); 26
(iv) if the proposed development plan does not include a 27
provision proposed by the tenement holder--why it was not 28
included; 29
380 See also part 8 (Confidentiality of information).
s 373 257 s 374
Petroleum and Gas (Production and Safety) Bill 2004
(v) the applicant's assessment of the potential for the applicant 1
and the tenement holder to make a coordination 2
arrangement about-- 3
(A) petroleum production under the amended petroleum 4
lease; and 5
(B) coal, oil shale or incidental coal seam gas mining under 6
any future mining lease over the land that may be 7
granted to the tenement holder; and 8
(h) be accompanied by the fee prescribed under a regulation. 9
(2) However, the CSG statement need not include a proposed safety 10
management plan. 11
373 Notice of application 12
The applicant must immediately after making the application give the 13
coal or oil shale exploration tenement holder a copy of the application. 14
Subdivision 3--Deciding amendment application 15
374 Submissions by coal or oil shale exploration tenement holder 16
(1) The coal or oil shale exploration tenement holder may lodge 17
submissions about the application at-- 18
(a) the office of the department for lodging the submissions, as 19
stated in a gazette notice by the chief executive; or 20
(b) if no office is gazetted under paragraph (a)--the office of the 21
chief executive.381 22
(2) However, the submissions may be lodged only within 20 business 23
days after the holder is, under section 373, given a copy of the application. 24
(3) The submissions may include-- 25
(a) information about all or any of the following-- 26
(i) exploration carried out under the tenement; 27
(ii) the results of the exploration; 28
381 See also part 8 (Confidentiality of information).
s 375 258 s 376
Petroleum and Gas (Production and Safety) Bill 2004
(iii) the prospects for future coal or oil shale mining or 1
incidental coal seam gas mining from the land; or 2
(b) a proposal by the tenement holder for the development of coal or 3
oil shale in the land; or 4
(c) information relevant to the CSG assessment criteria. 5
(4) The holder must give the applicant a copy of the submissions. 6
(5) In deciding the application, regard must be had to the submissions. 7
375 Minister may require further negotiation 8
(1) The Minister may, by notice, require the applicant to conduct 9
negotiations with the coal or oil shale exploration tenement holder with a 10
view to making changes of a type mentioned in section 370(1)(b).382 11
(2) The applicant must use all reasonable attempts to comply with the 12
requirement. 13
(3) If the Minister is reasonably satisfied the applicant has not complied 14
with the requirement the Minister may decide to refuse the application. 15
376 Deciding amendment application 16
(1) Before deciding to grant the application, the Minister must decide 17
whether to approve the applicant's proposed later development plan for the 18
petroleum lease. 19
(2) The application can not be granted unless the proposed plan has been 20
approved. 21
(3) Chapter 2, part 2, division 4383 applies for deciding whether to 22
approve the proposed plan. 23
(4) The matters that must be considered in deciding the application 24
include each of the following-- 25
(a) the CSG assessment criteria; 26
382 Section 370 (Conditions for applying to amend)
383 Chapter 2, part 2, division 4 (Development plans)
See also part 6 (Additional provisions for development plans), division 2
(Additional development plan criteria for proposed later development plans).
s 377 259 s 378
Petroleum and Gas (Production and Safety) Bill 2004
(b) whether the applicant has taken all reasonable steps to comply 1
with the relinquishment condition; 2
(c) the effect of any approval of later development plans for the 3
petroleum lease; 4
(d) any submissions under section 374 lodged within the period 5
mentioned in section 374(2). 6
Division 4--Restriction on amendment of other conditions 7
377 Interests of relevant coal or oil shale mining tenement holder to 8
be considered 9
A condition of a petroleum lease must not be amended under 10
section 848384 unless the interests of any relevant coal or oil shale mining 11
tenement holder have been considered. 12
Division 5--Renewals 13
378 Applied provisions for making and deciding renewal application 14
(1) The adopted provisions apply for a renewal application for a 15
petroleum lease-- 16
(a) as if the petroleum lease holder had lodged a proposed later 17
development plan for the Minister to approve; and 18
(b) as if a reference in the adopted provisions-- 19
(i) to the application were a reference to the renewal 20
application; and 21
(ii) to a petroleum lease were a reference to the renewed 22
petroleum lease; and 23
(iii) to a proposed development plan were a reference to a 24
proposed later development plan. 25
(2) In this section-- 26
"adopted provisions" means-- 27
384 Section 848 (Power to correct or amend)
s 379 260 s 379
Petroleum and Gas (Production and Safety) Bill 2004
(a) if all or part of the land in the area of the petroleum lease is in the 1
area of a coal or oil shale exploration tenement--part 2, 2
division 1, subdivisions 2 and 4;385 or 3
(b) if all or part of the land in the area of the petroleum lease is in the 4
area of a coal mining lease or oil shale mining lease and the coal 5
mining lease holder or oil shale mining lease holder is not a 6
holder of the petroleum lease--part 3, division 2;386 or 7
(c) if all or part of the land in the area of the petroleum lease is in the 8
area of a coal mining lease or oil shale mining lease and the coal 9
mining lease holder or oil shale mining lease holder holds the 10
petroleum lease--part 3, division 3.387 11
Division 6--Restrictions on particular transfers 12
379 Requirement for coordination arrangement to transfer petroleum 13
lease in tenure area of mining lease 14
(1) This section applies if land is in the area of a petroleum lease and a 15
coal mining lease or oil shale mining lease. 16
(2) A transfer of the petroleum lease must not be approved under 17
chapter 5, part 10 unless the proposed transferee and the mining lease 18
holder are parties to a coordination arrangement about-- 19
(a) petroleum production under the petroleum lease; and 20
(b) coal or oil shale mining and any incidental coal seam gas mining 21
under the mining lease. 22
385 Part 2, division 1 (Obtaining petroleum lease other than by or jointly with, or with
the consent of, coal or oil shale exploration tenement holder), subdivisions 2
(Provisions for making petroleum lease application) and 4 (Obligations of applicant
and coal or oil shale exploration tenement holder)
386 Part 3, division 2 (Petroleum lease application other than by or jointly with coal
mining lease holder or oil shale mining lease holder)
387 Part 3, division 3 (Petroleum lease application by or jointly with coal mining lease
holder or oil shale mining lease holder)
s 380 261 s 382
Petroleum and Gas (Production and Safety) Bill 2004
PART 6--ADDITIONAL PROVISIONS FOR 1
DEVELOPMENT PLANS 2
Division 1--Additional requirements for proposed initial development 3
plans 4
380 Operation of div 1 5
This division provides for additional requirements for a proposed initial 6
development plan for a petroleum lease applied for under chapter 2, 7
section 332 or 352.388 8
381 Statement about interests of coal or oil shale exploration tenement 9
holder 10
The proposed plan must include a statement of how the effects on, and 11
the interests of, any relevant overlapping or adjacent coal or oil shale 12
exploration tenement holder have, or have not, been considered, having 13
regard to-- 14
(a) the main purposes of this chapter;389 and 15
(b) the CSG assessment criteria, other than the requirements of 16
chapter 9.390 17
382 Requirement to optimise petroleum production 18
(1) The activities provided for under the proposed plan must seek to 19
optimise petroleum production in a safe and efficient way. 20
(2) However, the activities must not adversely affect the future safe and 21
efficient mining of a mineable coal seam where it is commercially and 22
technically feasible to do so. 23
388 Section 332 or 352 (Right to apply for petroleum lease)
For other development plan requirements, see chapter 2, part 2, division 4,
subdivision 2 (Requirements for proposed initial development plans).
389 See section 295 (Main purposes of ch 3).
390 Chapter 9 (Safety)
s 383 262 s 385
Petroleum and Gas (Production and Safety) Bill 2004
383 Consistency with coal mining lease or oil shale mining lease 1
development plan and relevant coordination arrangement 2
If all or part of the area of the proposed petroleum lease is in the area of 3
a coal mining lease or oil shale mining lease (the "relevant land"), the 4
proposed plan must, to the extent it applies to the relevant land, be 5
consistent with-- 6
(a) the development plan for the mining lease; and 7
(b) any coordination arrangement relating to the relevant land. 8
Division 2--Additional development plan criteria for proposed later 9
development plans 10
384 Additional criteria 11
(1) This section applies if-- 12
(a) the Minister is considering whether to approve a proposed later 13
development plan for a petroleum lease; and 14
(b) the area of the petroleum lease includes all or part of the area of a 15
coal mining tenement or oil shale mining tenement. 16
(2) The matters that must be considered also include-- 17
(a) the CSG assessment criteria; and 18
(b) the effect of any approval of the proposed plan on any 19
relinquishment condition for the lease.391 20
PART 7--ADDITIONAL PROVISIONS FOR SAFETY 21
MANAGEMENT PLAN 22
385 Grant of petroleum lease does not affect obligation to make plan 23
(1) This section applies if a CSG statement accompanies an application 24
for a petroleum lease, as required under this chapter. 25
391 See also section 148 (Power to require relinquishment).
s 386 263 s 387
Petroleum and Gas (Production and Safety) Bill 2004
(2) The deciding of the application or the grant of the lease-- 1
(a) does not affect the obligation under section 674 to make a safety 2
management plan for any operating plant in the area of the lease; 3
and 4
(b) is not, of itself, evidence that a safety management plan, or 5
purported safety management plan, for an operating plant on the 6
area of the petroleum lease complies with section 388 or 675.392 7
386 Consultation with particular coal mining tenement or oil shale 8
mining tenement holders required before making plan 9
(1) This section imposes obligations on a person (the "operator") who 10
is, or proposes to be, an operator of an operating plant used to explore for, 11
extract, produce, release or transport petroleum. 12
(2) The obligations must be complied with before the operator can make 13
a safety management plan for the plant.393 14
(3) If activities carried out, or proposed to be carried out, at the plant 15
may adversely affect the safe and efficient mining of a mineable coal seam 16
in the area of a coal or oil shale mining tenement, the operator must make 17
reasonable attempts to consult with the tenement holder about the 18
activities. 19
(4) The operator must have regard to any reasonable provisions for the 20
safety management plan proposed by the tenement holder that relate to the 21
activities or proposed activities. 22
(5) However, the obligation under subsection (4) applies only to the 23
extent the provisions are commercially and technically feasible for the 24
operator or any relevant petroleum tenure holder. 25
387 Resolving disputes about provision proposed by coal or oil shale 26
exploration tenement holder 27
(1) This section applies if a dispute exists between an operator under 28
section 386 and a coal or oil shale mining tenement holder about the 29
392 Section 388 (Additional content requirements)
Section 675 (Content requirements for safety management plans)
393 For the making of the safety management plan, see section 674 (Requirement to
have safety management plan).
s 388 264 s 388
Petroleum and Gas (Production and Safety) Bill 2004
reasonableness of a provision proposed by the tenement holder for the 1
operator's proposed safety management plan. 2
(2) Either party to the dispute may refer it to the chief inspector to decide 3
whether the proposed provision is reasonable. 4
(3) The referral must be-- 5
(a) written; and 6
(b) lodged at the following office (the "relevant office")-- 7
(i) the office of the department for lodging the referral, as 8
stated in a gazette notice by the chief inspector; 9
(ii) if no office is gazetted under subparagraph (i)--the office of 10
the chief inspector. 11
(4) Before deciding the dispute, the chief inspector must give each party 12
a reasonable opportunity to lodge at the relevant office submissions about 13
the dispute. 14
(5) The chief inspector's decision binds each party to the dispute. 15
(6) The chief inspector must give each party an information notice about 16
the decision. 17
(7) The chief inspector's decision is not, of itself, evidence that a safety 18
management plan, or purported safety management plan, for an operating 19
plant complies with section 388 or 675.394 20
388 Additional content requirements 21
(1) Subject to any exemption granted under section 389, a safety 22
management plan for an operating plant used to explore for, extract, 23
produce or release petroleum must include-- 24
(a) an identification and description of all activities carried out, or 25
proposed to be carried out, at the plant that may adversely affect 26
the safe and efficient mining, or future mining, of mineable coal 27
seams; and 28
(b) proposed measures to mitigate the risks to safe and efficient 29
mining, or future mining, of mining coal seams to an acceptable 30
level of risk; and 31
394 Section 675 (Content requirements for safety management plans)
s 389 265 s 389
Petroleum and Gas (Production and Safety) Bill 2004
(c) an assessment of the potential risks the activities may cause to 1
the safe and efficient mining, or future mining, of mineable coal 2
seams. 3
(2) The proposed measures must comply with-- 4
(a) good industry practice; and 5
(b) any relevant safety requirement; and 6
(c) protocols or standards prescribed under a regulation. 7
(3) A regulation may prescribe-- 8
(a) what are mineable coal seams for subsection (1); and 9
(b) what is good industry practice; and 10
(c) matters to which regard must be had in deciding what is good 11
industry practice. 12
389 Exemption from additional content requirements 13
(1) The Minister may grant an operator, or proposed operator, of an 14
operating plant an exemption from complying with a stated requirement, or 15
a stated part of a requirement, under section 388 for-- 16
(a) a stated petroleum tenure; or 17
(b) a stated mineable coal seam. 18
(2) The operator, or proposed operator, may apply for the exemption. 19
(3) The application must be-- 20
(a) in the approved form; and 21
(b) lodged at-- 22
(i) the office of the department for lodging the application, as 23
stated in a gazette notice by the chief executive; or 24
(ii) if no office is gazetted under subparagraph (i)--the office 25
stated in the approved form; or 26
(iii) otherwise--the office of the chief executive. 27
(4) The chief executive must, after receiving the application, give any 28
relevant coal or oil shale exploration tenement holder-- 29
(a) a copy of the application; and 30
s 390 266 s 390
Petroleum and Gas (Production and Safety) Bill 2004
(b) a notice stating the holder may, within 20 business days after 1
receiving the notice, lodge submissions about the application 2
at-- 3
(i) the office of the department for lodging the submissions, as 4
stated in a gazette notice by the chief executive; or 5
(ii) if no office is gazetted under subparagraph (i)--the office of 6
the chief executive. 7
(5) The holder must give the applicant a copy of any submissions lodged 8
by the holder within the 20 business days. 9
(6) The Minister must-- 10
(a) consider any submissions lodged by the holder within the 11
20 business days; and 12
(b) give the applicant at least 20 business days after the lodging of 13
the holder's submissions to respond to them in writing; and 14
(c) consider any written response made under paragraph (b). 15
(7) The application must not be decided unless subsection (5) has been 16
complied with. 17
(8) In deciding the application regard must be had to the main purposes 18
of this chapter.395 19
(9) The applicant must be given notice of the decision. 20
PART 8--CONFIDENTIALITY OF INFORMATION 21
390 Application of pt 8 22
(1) This part applies if a tenure holder or a person who has applied for a 23
tenure (the "information-giver") gives another tenure holder or a person 24
who has applied for a tenure (the "recipient") information-- 25
395 See section 295 (Main purposes of ch 3).
s 391 267 s 392
Petroleum and Gas (Production and Safety) Bill 2004
(a) that this chapter requires the information-giver to give the 1
recipient, including, for example, information given to comply 2
with section 313(a);396 or 3
(b) for the purposes of this chapter. 4
(2) However, this part applies subject to any agreement between the 5
information-giver and the recipient about the information or its use. 6
(3) In this section-- 7
"information" means information given verbally or in writing. 8
"tenure" means a petroleum tenure or a coal or oil shale mining tenement. 9
391 Confidentiality obligations 10
(1) The recipient must not disclose the information to anyone else, 11
unless-- 12
(a) the information is publicly available; or 13
(b) the disclosure is-- 14
(i) made with the information-giver's consent; or 15
(ii) expressly permitted or required under this or another Act; or 16
(iii) to the Minister. 17
(2) The recipient may use the information only for the purpose for which 18
it is given. 19
392 Civil remedies 20
If the recipient does not comply with section 391, a court of competent 21
jurisdiction may order the recipient to pay the information-giver all or any 22
of the following-- 23
(a) compensation for any loss the information-giver incurred 24
because of the failure to comply with the section; 25
(b) the amount of any commercial gain the recipient made because 26
of the failure to comply with the section. 27
396 Section 313 (Obligations of coal or oil shale exploration tenement holder)
s 393 268 s 394
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 4--LICENCES AND RELATED 1
MATTERS 2
3
Note--
4
For when a licence is required, see sections 802 and 803.397
PART 1--SURVEY LICENCES 5
Division 1--Key authorised activities 6
393 Purpose of div 1 7
The purpose of this division is to allow access to land for activities under 8
section 394 that involve minimal impact on or disturbance of the land.398 9
394 Surveying activities 10
(1) A survey licence holder may enter the area of the licence to-- 11
(a) investigate and survey its potential and suitability for the 12
construction and operation of pipelines or petroleum facilities; 13
and 14
(b) identify possible pipeline routes and pipeline or petroleum 15
facility access routes. 16
(2) The carrying out of activities mentioned in subsection (1) is subject 17
to-- 18
(a) section 6; and 19
(b) chapter 5; and 20
(c) the mandatory and other conditions of the licence; and 21
397 Sections 802 (Restriction on pipeline construction or operation) and 803
(Restriction on petroleum facility construction or operation)
398 For other authorised activities, see chapter 5, part 2, division 3 (Access to private
land outside area of petroleum authority) and part 8 (General provisions for
conditions and authorised activities.
s 395 269 s 395
Petroleum and Gas (Production and Safety) Bill 2004
(d) any exclusion or restriction provided for in the licence on the 1
carrying out of the activities.399 2
Division 2--Obtaining survey licence 3
395 Applying for licence 4
(1) A person may apply for a survey licence. 5
(2) The application must-- 6
(a) be in the approved form; and 7
(b) be lodged at-- 8
(i) the office of the department for lodging survey licence 9
applications, as stated in a gazette notice by the chief 10
executive; or 11
(ii) if no office is gazetted under subparagraph (i)--the office 12
stated in the approved form; or 13
(iii) otherwise--the office of the chief executive; and 14
(c) state each of the following-- 15
(i) the type of pipeline or petroleum facility the applicant 16
proposes to construct and operate; 17
(ii) the proposed use of the pipeline or facility; 18
(iii) for a proposed pipeline--its terminal points; 19
(iv) the period for which the licence is sought; 20
(v) the extent and nature of activities to be carried out under the 21
licence; and 22
(d) address the criteria mentioned in section 397; and 23
(e) be accompanied by the fee prescribed under a regulation. 24
399 Section 6 (Relationship with Mineral Resources Act)
Chapter 3 (Provisions for coal seam gas), part 4, division 2 (Restriction on
authorised activities on coal mining lease or oil shale mining lease land)
Chapter 5 (Common petroleum authority provisions)
s 396 270 s 397
Petroleum and Gas (Production and Safety) Bill 2004
396 Deciding application 1
(1) The Minister may decide to grant or refuse the survey licence. 2
(2) However, the licence can not be granted unless the applicant is an 3
eligible person. 4
(3) The licence must state its term and area. 5
(4) The term must end no later than 1 year after the licence takes effect. 6
(5) The licence may also state-- 7
(a) conditions or other provisions of the licence not inconsistent with 8
the mandatory conditions for survey licences; or 9
(b) a day for the licence to take effect. 10
(6) However, the provisions of the licence may exclude or restrict the 11
carrying out of an authorised activity for the licence. 12
(7) If no day of effect is decided, the licence takes effect on the day it is 13
granted. 14
15
Note--
16
Chapter 5 also imposes mandatory conditions on survey licences. In particular, see
17
chapter 5, part 2, division 3 and chapter 5, part 8.400
397 Criteria for decisions 18
The matters that must be considered in deciding whether to grant a 19
survey licence or deciding its provisions include the applicant's-- 20
(a) financial and technical resources; and 21
(b) ability to manage a survey to work out the suitability of the area 22
of the licence for the pipeline or petroleum facility the applicant 23
proposes to construct and operate. 24
400 Chapter 5, part 2, division 3 (Access to private land outside area of petroleum
authority) and part 8 (General provisions for conditions and authorised activities)
s 398 271 s 399
Petroleum and Gas (Production and Safety) Bill 2004
PART 2--PIPELINE LICENCES401 1
Division 1--Key authorised activities 2
Subdivision 1--Preliminary 3
398 Operation of div 1 4
(1) This division provides for the key authorised activities for a pipeline 5
licence.402 6
(2) The authorised activities may be carried out despite the rights of an 7
owner or occupier of land on which they are exercised. 8
(3) However, the carrying out of the authorised activities is subject to-- 9
(a) subdivision 2; and 10
(b) chapter 5; and 11
(c) the mandatory and other conditions of the licence; and 12
(d) any exclusion or restriction provided for in the licence on the 13
carrying out of the activities.403 14
399 What is "pipeline land" for a pipeline licence 15
(1) "Pipeline land", for a pipeline licence, is land-- 16
(a) that the licence holder owns; or 17
(b) over which the holder-- 18
(i) holds an appropriate easement for the construction or 19
operation of the pipeline; or 20
401 For what is a pipeline, see section 16 (What is a "pipeline").
For when a pipeline licence is required for a pipeline, see section 802 (Restriction on
pipeline construction or operation).
402 For other authorised activities, see chapter 5, part 2, division 3 (Access to private
land outside area of petroleum authority) and part 8 (General provisions for
conditions and authorised activities).
403 Section 6 (Relationship with Mineral Resources Act)
Chapter 5 (Common petroleum authority provisions)
s 400 272 s 401
Petroleum and Gas (Production and Safety) Bill 2004
(ii) has obtained the owner's written permission to enter; or 1
(iii) holds a part 5 permission to enter to construct or operate the 2
pipeline.404 3
(2) To remove any doubt, it is declared that-- 4
(a) the granting of a pipeline licence does not, of itself, create an 5
easement for the construction or operation of the pipeline; and 6
(b) the giving of a waiver of entry notice is not, of itself, a 7
permission for subsection (1)(b)(ii). 8
Subdivision 2--General restriction on authorised activities 9
400 Restriction if there is an existing mining lease 10
If land in the area of a pipeline licence is also in the area of a mining 11
lease and the mining lease was granted before the licence, an authorised 12
activity for the licence may be carried out on the land only if-- 13
(a) the mining lease holder has agreed in writing to the carrying out 14
of the activity; and 15
(b) a copy of the agreement has been lodged at-- 16
(i) the office of the department for lodging the agreement, as 17
stated in a gazette notice by the chief executive; or 18
(ii) if no office is gazetted under subparagraph (i)--the office of 19
the chief executive; and 20
(c) the agreement is still in force. 21
Subdivision 3--Pipeline construction and operation 22
401 Construction and operation of pipeline 23
(1) The holder of a pipeline licence may construct or operate each 24
pipeline the subject of the licence on-- 25
(a) pipeline land for the licence; and 26
404 Part 5 (Permission to enter land to exercise rights under a pipeline or petroleum
facility licence)
s 402 273 s 403
Petroleum and Gas (Production and Safety) Bill 2004
(b) subject to division 6,405 public land in the area of the licence.406 1
(2) However, if native title exists in relation to land mentioned in 2
subsection (2), the holder must comply with section 399(1)(b)407 for the 3
native title rights and interests that relate to the native title. 4
(3) To remove any doubt, it is declared that the mere grant of the licence 5
does not, of itself, authorise the construction or operation of a pipeline on 6
other land in the area of the licence. 7
402 Licence may extend transportation right to other prescribed 8
substances 9
(1) A condition of a pipeline licence may extend its holder's right under 10
section 401 to operate any pipeline in the area of the licence to include the 11
transportation of a substance prescribed under a regulation. 12
(2) However, a substance may be prescribed only if it is similar to 13
petroleum and is suitable for transportation by the pipeline. 14
(3) The condition may impose restrictions on the extended right. 15
403 Incidental activities 16
(1) This section applies if, under section 401, a pipeline licence holder 17
has the right to construct or operate a pipeline. 18
(2) The holder may carry out an activity (an "incidental activity") in the 19
area of the licence if carrying out the activity is reasonably necessary for 20
the construction or operation.408 21
22
Examples of incidental activities--
23
1. constructing or operating plant or works, including, for example, bridges,
24
powerlines, roads, trenches and tunnels
405 Division 6 (Provisions for public land authorities)
See also section 802 (Restriction on pipeline construction or operation).
For who may exercise the rights for the holder, see section 563 (Who may carry out
authorised activity for petroleum authority holder).
406 For who owns the pipeline, see chapter 5, part 6 (Ownership of pipelines, equipment
and improvements).
407 Section 399 (What is "pipeline land" for a pipeline licence)
408 See also chapter 5 (Common petroleum authority provisions) and section 20 (What
are the "conditions" of a petroleum authority).
s 404 274 s 406
Petroleum and Gas (Production and Safety) Bill 2004
1
2. constructing or using temporary structures or structures of an industrial or
2
technical nature, including, for example, mobile and temporary camps
3
3. removing vegetation for, or for the safety of, the pipeline construction or operation.
(3) However, constructing or using a structure, other than a temporary 4
structure, for office or residential accommodation is not an incidental 5
activity.409 6
Division 2--Availability of pipeline licences 7
404 Licence types--area or point to point 8
(1) A pipeline licence may be granted-- 9
(a) over a stated area (an "area pipeline licence"); or 10
(b) for a pipeline from one stated point or points to another point or 11
points (a "point-to-point pipeline licence"). 12
(2) However, an area pipeline licence can not be granted for a 13
transmission pipeline. 14
405 Pipeline licence can not be granted for distribution pipeline 15
A pipeline licence under this Act can not be granted for a distribution 16
pipeline. 17
406 Pipeline licence may be granted over any land 18
A pipeline licence may be granted over any land, including land in the 19
area of another petroleum authority. 20
409 For development generally, see the Integrated Planning Act 1997, chapter 3
(Integrated development assessment system (IDAS)) and schedule 9 (Development
that is exempt development for a planning scheme).
s 407 275 s 409
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Obtaining pipeline licence 1
Subdivision 1--Applying for pipeline licence 2
407 Who may apply and multiple licence applications 3
(1) A person may apply for a pipeline licence. 4
(2) However, a person can not, in the same application, apply for-- 5
(a) a point-to-point pipeline licence for more than 1 point-to-point 6
pipeline; or 7
(b) an area pipeline licence for more than 1 area; or 8
(c) a point-to-point pipeline licence and an area pipeline licence. 9
408 Notice of proposed application to relevant local government 10
(1) The applicant must, before making the application, give each relevant 11
local government a notice stating the application details under 12
section 409(c) for the proposed application. 13
(2) In this section-- 14
"relevant local government" means a local government in whose local 15
government area pipelines are proposed to be constructed under the 16
licence. 17
409 Requirements for making application 18
The application must-- 19
(a) be in the approved form; and 20
(b) be lodged at-- 21
(i) the office of the department for lodging pipeline licence 22
applications, as stated in a gazette notice by the chief 23
executive; or 24
(ii) if no office is gazetted under subparagraph (i)--the office 25
stated in the approved form; or 26
(iii) otherwise--the office of the chief executive; and 27
(c) state each of the following (the "application details")-- 28
s 409 276 s 409
Petroleum and Gas (Production and Safety) Bill 2004
(i) a description of the land in the area of the licence; 1
(ii) the type and purpose of each pipeline to be the subject of the 2
licence and each substance proposed to be transported 3
through it; 4
(iii) for a point-to-point pipeline licence-- 5
(A) the pipeline's terminal points; and 6
(B) if the pipeline has not already been constructed--a 7
proposed day for the completion of the construction of 8
the pipeline; 9
(iv) for an area pipeline licence--a proposed day for the 10
completion of the construction of each initial pipeline 11
mentioned in the licence; 12
(v) the extent and nature of activities proposed to be carried out 13
under the licence; and 14
(d) include a statement about how and when the applicant proposes 15
to consult with, and keep informed, owners and occupiers of-- 16
(i) private or public land on which the activities are proposed to 17
be carried out; or 18
(ii) access land for the proposed licence;410 and 19
(e) if the area of the licence is, or is included in, the area of another 20
petroleum authority or a mining interest--identify possible 21
impacts of authorised activities under the licence on authorised 22
activities under the other petroleum authority or on mining under 23
the mining interest; and 24
(f) include a statement that section 408 has been complied with; and 25
(g) address the criteria mentioned in section 415(a); and 26
(h) be accompanied by the fee prescribed under a regulation. 27
410 See section 418 (Obligation to consult with particular owners and occupiers).
s 410 277 s 411
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Deciding pipeline licence application 1
410 Deciding whether to grant licence 2
(1) The Minister may-- 3
(a) subject to section 411, grant the applicant a pipeline licence only 4
if-- 5
(i) the applicant is an eligible person; and 6
(ii) a relevant environmental authority for the licence has been 7
issued; and411 8
(b) before granting the licence, require the applicant to do all or any 9
of the following within a stated reasonable period-- 10
(i) pay the licence fee for the first year of the proposed licence; 11
(ii) give, under section 488,412 security for the licence. 12
(2) If the applicant does not comply with a requirement under 13
subsection (1), the Minister may refuse to grant the licence. 14
411 Public notice requirement 15
The Minister must not grant the applicant a pipeline licence unless-- 16
(a) a notice stating each of the following has been gazetted-- 17
(i) that an application for a pipeline licence has been made; 18
(ii) the applicant's name; 19
(iii) the area proposed for the licence; 20
(iv) where further details about the application can be obtained; 21
(v) a period of at least 30 business days during which anyone 22
may lodge submissions about the application at-- 23
(A) the office of the department for lodging the 24
submissions, as stated in a gazette notice by the chief 25
executive; or 26
411 See also section 415 (Criteria for decisions).
412 Section 488 (Power to require security for petroleum authority)
s 412 278 s 412
Petroleum and Gas (Production and Safety) Bill 2004
(B) if no office is gazetted under subsubparagraph (A)-- 1
the office of the chief executive; and 2
(b) the Minister has considered any submissions lodged under 3
paragraph (a)(v) within the stated period. 4
412 Provisions of licence 5
(1) Each pipeline licence must state-- 6
(a) its term and area;413 and 7
(b) for a point-to-point pipeline licence--the day for completion of 8
the construction of the pipeline, if it has not already been 9
constructed; 10
(c) for an area pipeline licence--the day for completion of the 11
construction of each initial pipeline to be the subject of the 12
licence, if they have not already been constructed. 13
(2) Subject to section 413, the licence may also state-- 14
(a) conditions or other provisions of the licence, other than 15
conditions or provisions that are-- 16
(i) inconsistent with the mandatory conditions for pipeline 17
licences;414 or 18
(ii) the same as, or substantially the same as, or inconsistent 19
with, any relevant environmental condition for the licence; 20
and 21
(b) review days for the licence;415 and 22
(c) the day it takes effect. 23
(3) However, the provisions of the licence may exclude or restrict the 24
carrying out of an authorised activity for the licence. 25
(4) If no day of effect is stated, the licence takes effect on the day it is 26
granted. 27
413 See also section 414 (Provision for reduction of area of licence).
414 For mandatory conditions, see division 4 (Key mandatory conditions for pipeline
licences) and chapter 5, part 8 (General provisions for conditions and authorised
activities).
415 For the consequences of a pipeline licence having review days, see division 7
(Ministerial review of pipeline licence conditions).
s 413 279 s 414
Petroleum and Gas (Production and Safety) Bill 2004
413 Restriction on imposing takeover condition 1
(1) A pipeline licence may include a condition (a "takeover condition") 2
that takeover action may be taken on grounds, or in circumstances, stated in 3
the licence only if-- 4
(a) the licence is a point-to-point pipeline licence; and 5
(b) the Minister is satisfied-- 6
(i) an appropriate competitive tender process has been carried 7
out to select the developer for the pipeline; and 8
(ii) a contract to which the State and the applicant are parties 9
provides for the imposition of the condition. 10
(2) In this section-- 11
"takeover action" means doing 1 or more of the following-- 12
(a) cancelling the licence, other than by way of noncompliance 13
action; 14
(b) transferring the pipeline to the State; 15
(c) taking over the construction of the pipeline; 16
(d) taking over the operation of the pipeline; 17
(e) transferring to the State the licence holder's interest in pipeline 18
land for the pipeline; 19
(f) transferring 1 or more of the following to an entity other than the 20
State-- 21
(i) the pipeline; 22
(ii) the licence; 23
(iii) the licence holder's interest in pipeline land for the pipeline. 24
414 Provision for reduction of area of licence 25
A pipeline licence may provide that stated land ceases to be in the area 26
of the licence if-- 27
(a) construction of a stated pipeline is completed; and 28
(b) the land has not become pipeline land for the licence. 29
s 415 280 s 417
Petroleum and Gas (Production and Safety) Bill 2004
415 Criteria for decisions 1
The matters that must be considered in deciding whether to grant a 2
pipeline licence or deciding its provisions include each of the following-- 3
(a) the applicant's-- 4
(i) financial and technical resources; and 5
(ii) ability to competently and safely manage any construction 6
and the operation of pipelines the subject of the licence; 7
(b) the appropriateness of each pipeline for its purpose as stated in 8
the application; 9
(c) for an area pipeline licence--the minimum area required for 10
pipelines the subject of the licence; 11
(d) if the area of the licence is, or is included in, the area of another 12
petroleum authority or a mining interest--possible impacts of 13
authorised activities under the licence on authorised activities 14
under the other petroleum authority or on mining under the 15
mining interest; 16
(e) whether the proposed licence is in the public interest. 17
416 Information notice about refusal 18
On refusal of the application, the applicant must be given an information 19
notice about the decision to refuse. 20
Division 4--Key mandatory conditions for pipeline licences 21
417 Operation of div 4 22
This division provides for particular mandatory conditions for pipeline 23
licences. 24
25
Note--
26
1. Chapter 5416 also provides for mandatory conditions for pipeline licences.
27
2. For what is a `mandatory condition', see section 20(2).417
416 Chapter 5 (Common petroleum authority provisions)
417 Section 20 (What are the "conditions" of a petroleum authority)
s 418 281 s 420
Petroleum and Gas (Production and Safety) Bill 2004
418 Obligation to consult with particular owners and occupiers 1
(1) A pipeline licence holder must consult, or use reasonable endeavours 2
to consult, with each owner and occupier of access land for the licence and 3
other private or public land, other than any of the following land, on which 4
authorised activities for the licence are, or are likely to be, carried out-- 5
(a) land that the licence holder owns; 6
(b) land over which the licence holder holds an appropriate easement 7
for the construction or operation of the pipeline. 8
(2) The consultation must be about the carrying out of authorised 9
activities for the licence (including, for example, crossing access land for 10
the licence) to the extent they relate to the owners and occupiers. 11
(3) The consultation must be carried out in the way and at the times-- 12
(a) provided for in the licence; or 13
(b) if the licence does not provide for how the consultation must be 14
carried out--approved by the Minister. 15
(4) This section does not limit chapter 5, part 2 or 3.418 16
(5) A failure to comply with this section does not prevent authorised 17
activities for the licence from being carried out. 18
419 Obligation to construct pipeline 19
(1) Subject to section 401,419 a pipeline licence holder must complete 20
construction of the pipeline the subject of the licence on or before any 21
completion day for the construction stated in the licence. 22
(2) However, if the licence is an area pipeline licence, subsection (1) 23
only applies for each initial pipeline mentioned in the licence. 24
420 Notice of completion of pipeline 25
(1) This section applies if-- 26
(a) the construction of a pipeline under an area pipeline licence is 27
completed; or 28
418 Chapter 5, part 2 (Private land) or 3 (Public land)
419 Section 401 (Construction and operation of pipeline)
s 421 282 s 421
Petroleum and Gas (Production and Safety) Bill 2004
(b) a pipeline the subject of a point-to-point pipeline licence is 1
completed. 2
(2) The licence holder must, within the relevant period, lodge a notice of 3
completion of the pipeline at the following office-- 4
(a) the office of the department for lodging the notice of completion, 5
as stated in a gazette notice by the chief executive; 6
(b) if no office is gazetted under paragraph (a)--the office of the 7
chief executive. 8
(3) The notice must-- 9
(a) state the day the pipeline was completed; and 10
(b) describe-- 11
(i) the pipeline land for the licence; and 12
(ii) any public land in the area of the licence the holder 13
reasonably requires to operate the pipeline; and 14
(c) be accompanied by the handling fee to record the information, as 15
prescribed under a regulation.420 16
(4) In this section-- 17
"relevant period" means the period that ends-- 18
(a) for a pipeline the subject of a point-to-point pipeline 19
licence--6 months after its completion; or 20
(b) for a pipeline under an area pipeline licence--20 business days 21
after its completion. 22
421 Notice to public road authority of pipeline constructed on public 23
road 24
If a pipeline licence holder constructs a pipeline on a public road, the 25
holder must, within 6 months after completing the pipeline-- 26
(a) give the public road authority for the road accurate details of the 27
location of the pipeline; and 28
420 See also division 5 (Amendment of point-to-point pipeline licences after pipeline
completed).
s 422 283 s 424
Petroleum and Gas (Production and Safety) Bill 2004
(b) keep complete and accurate records of the location of the 1
pipeline. 2
422 Obligations in operating pipeline 3
(1) The holder of a pipeline licence must, after the pipeline has been 4
constructed, operate it in a way that ensures its continuing capacity to 5
safely and reliably transport petroleum, fuel gas or another substance 6
prescribed under section 402421 for which it is licensed. 7
(2) It is a condition of a pipeline licence that the pipeline not remain 8
unused for a continuous period of more than 3 years, unless the Minister 9
otherwise agrees.422 10
423 Annual licence fee 11
(1) A pipeline licence holder must pay the State an annual licence fee as 12
prescribed under a regulation.423 13
(2) The fee must be paid in the way, and on or before the day, prescribed 14
under a regulation. 15
424 Civil penalty for nonpayment of annual licence fee 16
(1) If a pipeline licence holder does not pay an annual licence fee as 17
required under section 423, the holder must also pay the State a civil 18
penalty. 19
(2) The amount of the penalty is 15% of the fee. 20
(3) The penalty-- 21
(a) must be paid on the day after the last day for payment of the fee; 22
and 23
(b) is still payable even if the holder later pays the fee. 24
421 Section 402 (Licence may extend transportation right to other prescribed
substances)
422 See also sections 559 (Obligation to decommission pipelines) and 804 (Duty to
avoid interference in carrying out authorised activities).
423 See also section 588 (Interest on amounts owing to the State other than for
petroleum royalty).
s 425 284 s 427
Petroleum and Gas (Production and Safety) Bill 2004
Division 5--Amendment of point-to-point pipeline licences after 1
pipeline completed 2
425 Power to amend 3
If the holder of a point-to-point pipeline licence gives a notice under 4
section 420,424 the Minister may amend the licence to reduce its area to-- 5
(a) the pipeline land for the licence; and 6
(b) any public land in the area of the licence stated in the notice. 7
Division 6--Provisions for public land authorities 8
Subdivision 1--Public roads 9
426 Public road authority's obligations in aligning pipeline on road 10
If, under section 527, a public road authority imposes a condition
425
about an alignment for a pipeline on, or proposed to be constructed on, a 11
public road the alignment must be-- 12
13
(a) situated to ensure reasonable protection for the pipeline; and 14
(b) if practicable, on the footpath or verge of the road. 15
427 Requirement to consult if construction affects existing pipeline 16
(1) This section applies if a public road authority proposes to construct
or change a public road in a way that is likely to affect the location, 17
operation or safety of a pipeline. 18
19
(2) The authority must give the relevant pipeline licence holder a notice 20
stating-- 21
(a) details of the proposed road or proposed change; and 22
(b) that the holder may, within a stated period, lodge submissions to 23
the authority about the proposal at the office of the authority 24
stated in the notice. 25
424 Section 420 (Notice of completion of pipeline)
425 Section 527 (Conditions of public land authority approval)
s 428 285 s 429
Petroleum and Gas (Production and Safety) Bill 2004
(3) The stated period must not end before 30 business days after the 1
notice is given. 2
(4) Before deciding to implement the proposal, the authority must 3
consider any submissions lodged by the holder within the stated period. 4
(5) If the authority decides to implement the proposal, it must give the 5
holder notice of the decision. 6
428 Costs of pipeline works caused by public road construction 7
(1) This section applies if-- 8
(a) a public road authority constructs, or changes, a public road; and 9
(b) the road, or the road as changed, affects the safety, location or 10
operation of a pipeline constructed or operated, or proposed to be 11
constructed or operated; and 12
(c) because of the effects, it is necessary for the holder of the 13
pipeline licence for the pipeline to carry out works relating to the 14
pipeline. 15
(2) The holder must bear the holder's own costs of carrying out the 16
works if-- 17
(a) the road existed before the pipeline was constructed; or 18
(b) the road is constructed on an area that was dedicated to public 19
use as a road before the pipeline was constructed. 20
(3) Otherwise, the holder may recover from the authority as a debt any 21
reasonable costs the holder incurs in carrying out the works. 22
429 Public road authority's obligation to give holder information 23
(1) This section applies if a pipeline licence holder asks a public road 24
authority for a public road in the area of the licence for information 25
about-- 26
(a) the permanent level of the road; or 27
(b) the alignment allocated by the authority for a pipeline the subject 28
of the licence. 29
s 430 286 s 431
Petroleum and Gas (Production and Safety) Bill 2004
(2) The authority must comply with the request within 20 business days 1
after it is made. 2
(3) The information given must be accurate and as complete as possible. 3
430 Consequence of not giving information 4
If a public road authority does not comply with a request under 5
section 429 about a public road, the pipeline licence holder that made the 6
request may decide a reasonable permanent level and alignment for the 7
road, based on-- 8
(a) information available to the holder; and 9
(b) any standards prescribed under section 557(1)(b)426 for 10
constructing pipelines on roads. 11
Subdivision 2--Works directions 12
431 Power to give works directions 13
(1) This section applies if-- 14
(a) a pipeline licence holder proposes to construct, has constructed, 15
or is constructing, a pipeline on or through public land; and 16
(b) the public land authority for the land has, under a public land 17
authority approval, imposed a condition relating to the 18
construction;427 and 19
(c) the authority reasonably considers works should be carried out to 20
ensure compliance with the condition. 21
(2) The authority, may give the holder a notice (a "works direction") 22
directing the holder to carry out stated works to comply with the condition 23
within a stated reasonable period. 24
(3) The works direction must-- 25
(a) identify the relevant condition; and 26
426 Section 557 (Obligation to comply with Act and prescribed standards)
427 See sections 526 (Public land authority approval required for particular activities)
and 527 (Conditions of public land authority approval).
s 432 287 s 434
Petroleum and Gas (Production and Safety) Bill 2004
(b) include, or be accompanied by, an information notice about the 1
decision to make the works direction. 2
(4) Works stated in a works direction must comply with any standard 3
prescribed under a regulation for carrying out the works to the extent the 4
standard is relevant to the works. 5
432 Compliance with works direction 6
(1) A pipeline licence holder to whom a works direction has been given 7
must, within the period stated in it, comply with the direction to the 8
reasonable satisfaction of the public land authority that gave the direction. 9
(2) If the holder does not comply with subsection (1) the authority may 10
ensure the works the subject of the direction are carried out. 11
(3) The authority may recover from the holder as a debt any reasonable 12
costs the authority incurs in ensuring the works are carried out. 13
Division 7--Ministerial review of pipeline licence conditions 14
433 Application of div 7 15
This division applies only if a pipeline licence states a review day. 16
434 Power to review licence 17
(1) The Minister may, by complying with sections 435 and 436, amend 18
the pipeline licence if satisfied-- 19
(a) the conditions of the licence-- 20
(i) are no longer appropriate; or 21
(ii) do not make provision, or sufficient provision, about a 22
matter; and 23
(b) the amendment is necessary or desirable. 24
(2) However, the licence can not be amended in a way that is inconsistent 25
with the mandatory conditions for pipeline licences. 26
s 435 288 s 436
Petroleum and Gas (Production and Safety) Bill 2004
(3) This section does not limit the power to amend the licence under 1
another provision of this Act.428 2
435 Notice of proposed amendment 3
(1) The Minister must give the pipeline licence holder a notice stating 4
each of the following-- 5
(a) the proposed amendment; 6
(b) the conditions of the licence that the Minister considers are no 7
longer appropriate or the matter about which the conditions do 8
not make provision, or sufficient provision; 9
(c) reasons why the Minister considers the amendment to be 10
necessary or desirable; 11
(d) that the holder may, within a stated reasonable period, lodge 12
submissions about the proposed amendment at-- 13
(i) the office of the department for lodging the submissions, as 14
stated in a gazette notice by the chief executive; or 15
(ii) if no office is gazetted under subparagraph (i)--the office of 16
the chief executive. 17
(2) The stated period must not end before 20 business days after the 18
notice is given. 19
436 Decision on proposed amendment 20
(1) Before deciding the proposed amendment, any submissions lodged 21
within the period stated in the notice given under section 435 must be 22
considered. 23
(2) If a decision is made not to make the proposed amendment, the 24
holder must be given notice of the decision. 25
(3) If, after considering the submissions, the Minister is still satisfied 26
under section 434(1), the amendment may be made. 27
(4) On deciding to make the amendment, the holder must be given an 28
information notice about the decision. 29
428 See, for example, sections 790 (Types of noncompliance action that may be taken)
and 848 (Power to correct or amend).
s 437 289 s 437
Petroleum and Gas (Production and Safety) Bill 2004
(5) The amendment takes effect on the end of the appeal period for the 1
decision, or if a later day of effect stated in the notice, on the later day.429 2
Division 8--Miscellaneous provisions 3
437 Limitation of transmission pipeline licence holder's liability 4
(1) This section applies if a person incurs a cost, damage or loss because 5
of-- 6
(a) the partial or total failure of a pipeline licence holder to transport 7
petroleum or fuel gas through a transmission pipeline; or 8
(b) fuel gas not of the prescribed quality transported through a 9
transmission pipeline the subject of a pipeline licence. 10
(2) However, this section does not apply to the extent to which liability 11
for the cost, damage or loss is, under a contract, agreed between the person 12
and the licence holder. 13
(3) The licence holder is not civilly liable for the cost, damage or loss 14
if-- 15
(a) the failure, or the fuel gas being not of the prescribed quality, was 16
caused by a circumstance beyond the holder's control; and 17
(b) the holder's operation of the pipeline-- 18
(i) complied with this Act and the conditions of the licence; 19
and 20
(ii) was carried out in good faith and without negligence. 21
(4) Subsection (3) does not limit section 7(3).430 22
429 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
430 Section 7 (Act does not affect other rights or remedies)
s 438 290 s 439
Petroleum and Gas (Production and Safety) Bill 2004
PART 3--PETROLEUM FACILITY LICENCES431 1
Division 1--Key authorised activities 2
Subdivision 1--Preliminary 3
438 Operation of div 1 4
(1) This division provides for the key authorised activities for a 5
petroleum facility licence.432 6
(2) The authorised activities may be carried out despite the rights of an 7
owner or occupier of land on which they are exercised.433 8
(3) However, the carrying out of the authorised activities is subject to-- 9
(a) subdivision 2; and 10
(b) chapter 5; and 11
(c) the mandatory and other conditions of the licence; and 12
(d) any exclusion or restriction provided for in the licence on the 13
carrying out of the activities.434 14
439 What is "petroleum facility land" for a petroleum facility licence 15
(1) "Petroleum facility land", for a petroleum facility licence, is land-- 16
(a) that the licence holder owns; or 17
(b) over which the holder-- 18
431 For what is a petroleum facility, see section 17 (What is a "petroleum facility").
For when a licence is required for a petroleum facility, see section 803 (Restriction
on petroleum facility construction or operation).
432 For other authorised activities, see chapter 5, part 2, division 3 (Access to private
land outside area of petroleum authority) and part 8 (General provisions for
conditions and authorised activities).
433 See however the restrictions and requirements under chapter 5, parts 2 (Private
land), 3 (Public land) and 5 (General compensation provisions) for carrying out of
the activities.
434 Section 6 (Relationship with Mineral Resources Act)
Chapter 5 (Common petroleum authority provisions)
s 440 291 s 440
Petroleum and Gas (Production and Safety) Bill 2004
(i) holds an appropriate easement for the construction or 1
operation of the petroleum facility; or 2
(ii) has obtained the owner's written permission to enter to 3
construct or operate the petroleum facility; or 4
(iii) holds a part 5 permission to enter to construct or operate the 5
petroleum facility.435 6
(2) To remove any doubt, it is declared that-- 7
(a) the granting of a petroleum facility licence does not, of itself, 8
create an easement for the construction or operation of the 9
petroleum facility; and 10
(b) the giving of a waiver of entry notice is not, of itself, a 11
permission for subsection (1)(b)(ii). 12
Subdivision 2--General restriction on authorised activities 13
440 Restriction if there is an existing mining lease 14
If land in the area of a petroleum facility licence is also in the area of a 15
mining lease and the mining lease was granted before the licence, an 16
authorised activity for the licence may be carried out on the land only if-- 17
(a) the mining lease holder has agreed in writing to the carrying out 18
of the activity; and 19
(b) a copy of the agreement has been lodged at-- 20
(i) the office of the department for lodging the agreement, as 21
stated in a gazette notice by the chief executive; or 22
(ii) if no office is gazetted under subparagraph (i)--the office of 23
the chief executive; and 24
(c) the agreement is still in force. 25
435 Part 5 (Permission to enter land to exercise rights under a pipeline or petroleum
facility licence)
s 441 292 s 442
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Petroleum facility construction and operation 1
441 Construction and operation of petroleum facility 2
(1) The holder of a petroleum facility licence may, on the petroleum 3
facility land for the licence, construct or operate the petroleum facility. 4
(2) However, if native title exists in relation to the petroleum facility 5
land, the holder must comply with section 439(1)(b)436 for the native title 6
rights and interests that relate to the native title. 7
(3) To remove any doubt, it is declared that the mere grant of the licence 8
does not, of itself, authorise the construction or operation of the petroleum 9
facility on other land in the area of the licence. 10
442 Incidental activities 11
(1) This section applies if, under section 441, a petroleum facility licence 12
holder has the right to construct or operate a petroleum facility. 13
(2) The holder may carry out an activity (an "incidental activity") in the 14
area of the licence if carrying out the activity is reasonably necessary for 15
the construction or operation.437 16
17
Examples of incidental activities--
18
1. constructing or operating plant or works, including, for example, bridges,
19
powerlines, roads, trenches and tunnels
20
2. constructing or using temporary structures or structures of an industrial or
21
technical nature, including, for example, mobile and temporary camps
22
3. removing vegetation for, or for the safety of, the construction or operation of the
23
petroleum facility
(3) However, constructing or using a structure, other than a temporary 24
structure, for office or residential accommodation is not an incidental 25
activity.438 26
436 Section 439 (What is "petroleum facility land" for a petroleum facility licence)
437 See also chapter 5 (Common petroleum authority provisions) and section 20 (What
are the "conditions" of a petroleum authority).
438 For development generally, see the Integrated Planning Act 1997, chapter 3
(Integrated development assessment system (IDAS)) and schedule 9 (Development
that is exempt development for a planning scheme).
s 443 293 s 445
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Obtaining petroleum facility licence 1
Subdivision 1--Applying for petroleum facility licence 2
443 Who may apply 3
(1) A person may apply for a petroleum facility licence for a petroleum 4
facility or proposed petroleum facility. 5
(2) However, if the facility is partly on the area of a petroleum lease and 6
partly on other land, a person can not apply for a petroleum facility licence 7
in relation to the facility unless the application is for the whole of the 8
facility. 9
444 Notice of proposed application to relevant local government 10
(1) The applicant must, before making the application, give each relevant 11
local government a notice stating the application details under 12
section 445(c) for the proposed application. 13
(2) In this section-- 14
"relevant local government" means a local government in whose local 15
government area the petroleum facility is proposed to be constructed 16
under the licence. 17
445 Requirements for making application 18
The application must-- 19
(a) be in the approved form; and 20
(b) be lodged at-- 21
(i) the office of the department for lodging petroleum facility 22
licence applications, as stated in a gazette notice by the 23
chief executive; or 24
(ii) if no office is gazetted under subparagraph (i)--the office 25
stated in the approved form; or 26
(iii) otherwise--the office of the chief executive; and 27
(c) state each of the following-- 28
s 446 294 s 446
Petroleum and Gas (Production and Safety) Bill 2004
(i) the petroleum facility, or proposed petroleum facility, the 1
subject of the application; 2
(ii) a description of the proposed petroleum facility land for the 3
licence; 4
(iii) the precise location of the facility, or proposed petroleum 5
facility on the land; 6
(iv) the purpose of the facility; 7
(v) for a proposed facility--a proposed day for the completion 8
of the construction of the facility; 9
(vi) the extent and nature of activities proposed to be carried out 10
under the licence; and 11
(d) if the area of the licence is, or is included in, the area of another 12
petroleum authority--identify possible impacts of authorised 13
activities under the licence on authorised activities under the 14
other petroleum authority; and 15
(e) include a statement about how and when the applicant proposes 16
to consult with, and keep informed, owners and occupiers of-- 17
(i) private or public land on which the activities are proposed to 18
be carried out; or 19
(ii) access land for the proposed licence;439 and 20
(f) include a statement that section 444 has been complied with; and 21
(g) address the criteria mentioned in section 448(a); and 22
(h) be accompanied by the fee prescribed under a regulation. 23
Subdivision 2--Deciding petroleum facility licence application 24
446 Deciding whether to grant licence 25
(1) The Minister may-- 26
(a) decide to grant the applicant a petroleum facility licence only 27
if-- 28
(i) the applicant is an eligible person; and 29
439 See section 451 (Obligation to consult with particular owners and occupiers).
s 447 295 s 447
Petroleum and Gas (Production and Safety) Bill 2004
(ii) a relevant environmental authority for the licence has been 1
issued; and440 2
(b) before granting the licence, require the applicant to do all or any 3
of the following within a stated reasonable period-- 4
(i) pay the licence fee for the first year of the proposed licence; 5
(ii) give, under section 488,441 security for the licence. 6
(2) If the applicant does not comply with a requirement under 7
subsection (1), the Minister may refuse to grant the licence. 8
447 Provisions of licence 9
(1) Each petroleum facility licence must state-- 10
(a) its term and area; and 11
(b) if the facility the subject of the licence has not already been 12
constructed--a day by which its holder must complete 13
construction of the facility. 14
(2) The term must end no later than 30 years after the licence takes 15
effect. 16
(3) The area of the licence must be the area that the Minister considers is 17
the minimum area needed to adequately carry out the purpose of the 18
petroleum facility or proposed petroleum facility. 19
(4) The licence may also state-- 20
(a) conditions or other provisions of the licence, other than 21
conditions or provisions that are-- 22
(i) inconsistent with the mandatory conditions for petroleum 23
facility licences;442 or 24
(ii) the same as, or substantially the same as, or inconsistent 25
with, any relevant environmental condition for the licence; 26
and 27
440 See also section 448 (Criteria for decisions).
441 Section 488 (Power to require security for petroleum authority)
442 For mandatory conditions, see division 3 (Key mandatory conditions for petroleum
facility licences) and chapter 5, part 8 (General provisions for conditions and
authorised activities).
s 448 296 s 449
Petroleum and Gas (Production and Safety) Bill 2004
(b) the day it takes effect; and 1
(c) if the facility the subject of the licence has not already been 2
constructed--a day by which its holder must complete 3
construction of the facility. 4
(5) However, the provisions of the licence may exclude or restrict the 5
carrying out of an authorised activity for the licence. 6
(6) If no day of effect is stated, the licence takes effect on the day it is 7
granted. 8
448 Criteria for decisions 9
The matters that must be considered in deciding whether to grant a 10
petroleum facility licence or deciding its provisions include each of the 11
following-- 12
(a) the applicant's-- 13
(ii) financial and technical resources; and 14
(ii) ability to competently and safely manage the construction 15
and operation of the proposed petroleum facility; 16
(b) for a proposed petroleum facility, the appropriateness of its-- 17
(i) location on the proposed petroleum facility land; and 18
(ii) configuration, design and construction methods; 19
(c) if the area of the licence is, or is included in, the area of another 20
petroleum authority--any possible impacts of authorised 21
activities under the licence on authorised activities under the 22
other petroleum authority; 23
(d) the purpose of the facility; 24
(e) whether the proposed licence is in the public interest. 25
449 Information notice about refusal 26
On refusal of the application, the applicant must be given an information 27
notice about the decision to refuse. 28
s 450 297 s 451
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Key mandatory conditions for petroleum facility licences 1
450 Operation of div 3 2
This division provides for particular mandatory conditions for petroleum 3
facility licences. 4
5
Note--
6
1. Chapter 5443 also provides for mandatory conditions for petroleum facility
7
licences.
8
2. For what is a `mandatory condition', see section 20(2).444
451 Obligation to consult with particular owners and occupiers 9
(1) A petroleum facility licence holder must consult, or use reasonable 10
endeavours to consult, with each owner and occupier of access land for the 11
licence and other private or public land, other than any of the following 12
land, on which authorised activities for the licence are, or are likely to be, 13
carried out-- 14
(a) land that the licence holder owns; 15
(b) land over which the licence holder holds an appropriate easement 16
for the construction or operation of the petroleum facility. 17
(2) The consultation must be about the carrying out of authorised 18
activities for the licence (including, for example, crossing access land for 19
the licence) to the extent they relate to the owners and occupiers. 20
(3) The consultation must be carried out in the way and at the times-- 21
(a) provided for in the licence; or 22
(b) if the licence does not provide for how the consultation must be 23
carried out--approved by the Minister. 24
(4) This section does not limit chapter 5, part 2 or 3.445 25
(5) A failure to comply with this section does not prevent authorised 26
activities for the licence from being carried out. 27
443 Chapter 5 (Common petroleum authority provisions)
444 Section 20 (What are the "conditions" of a petroleum authority)
445 Chapter 5, part 2 (Private land) or 3 (Public land)
s 452 298 s 455
Petroleum and Gas (Production and Safety) Bill 2004
452 Obligation to construct facility 1
A petroleum facility licence holder must complete construction of the 2
petroleum facility the subject of the licence on or before any completion 3
day for the construction stated in the licence. 4
453 Obligation to operate facility 5
The holder of a petroleum facility licence must, after the facility has 6
been constructed, operate it in a way that ensures the continuing of the 7
facility for the purpose for which it is licensed. 8
454 Annual licence fee 9
(1) A petroleum facility licence holder must pay the State an annual 10
licence fee as prescribed under a regulation. 11
(2) The fee must be paid in the way, and on or before the day, prescribed 12
under a regulation.446 13
455 Civil penalty for nonpayment of annual licence fee 14
(1) If a petroleum facility licence holder does not pay an annual licence 15
fee as required under section 454, the holder must also pay the State a civil 16
penalty. 17
(2) The amount of the penalty is 15% of the fee. 18
(3) The penalty-- 19
(a) must be paid on the day after the last day for payment of the fee; 20
and 21
(b) is still payable even if the holder later pays the fee. 22
446 See also section 588 (Interest on amounts owing to the State other than for
petroleum royalty).
s 456 299 s 457
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--TAKING LAND FOR PIPELINES AND 1
PETROLEUM FACILITIES 2
456 State's power to take land 3
(1) This section applies subject to sections 457 and 458. 4
(2) The State may take land, or an interest in land for-- 5
(a) the carrying out of authorised activities for a licence or proposed 6
licence; or 7
(b) petroleum processing, storage or transport, including, for 8
example, to construct and operate a pipeline. 9
(3) The power to take land may be exercised-- 10
(a) for the State by the Minister; and 11
(b) whether or not the State proposes to transfer the land, or an 12
interest in the land, to someone else. 13
(4) To remove any doubt, it is declared that if the land is held from the 14
State under the Land Act 1994 or another Act, the power is as well as, and 15
is not limited by, any power under the other Act to forfeit or take the land or 16
the interest under which it is held. 17
(5) In this section-- 18
"licence" does not include a survey licence. 19
457 Restrictions on power to take land 20
(1) The State may take land under section 456 only if the Minister is 21
satisfied-- 22
(a) the area of the land is the minimum area needed to adequately 23
carry out the activities for which it is taken; and 24
(b) other land is not more appropriate for carrying out the activities; 25
and 26
(c) the taking of the land is in the public interest. 27
(2) Also, the State may take land for authorised activities for a petroleum 28
facility licence, or proposed petroleum facility licence, for a facility to be 29
used in connection with a pipeline or proposed pipeline only if the Minister 30
s 458 300 s 459
Petroleum and Gas (Production and Safety) Bill 2004
is satisfied the licence holder, or proposed licence holder, has decided the 1
site of the pipeline. 2
458 Process for taking land 3
(1) The Acquisition of Land Act 1967 (the "ALA") applies for taking 447
4
land under section 456 and paying compensation for land taken as if-- 5
(a) the taking were a taking under that Act by a constructing 6
authority; and 7
(b) the reference in the ALA, section 5(1)(c) to the taking of land for 8
a purpose stated in the schedule to that Act were a reference to 9
the taking of land for a purpose mentioned in section 456(2); and 10
(c) the constructing authority were the State; and 11
(d) the reference in the ALA, section 9448 to the Minister is a 12
reference to the Minister administering this Act. 13
(2) However, the ALA, section 10 is not to be applied.449 14
(3) Taking land under section 456 does not become a taking of land 15
under the ALA. 16
(4) In assessing the compensation, allowance can not be made for the 17
value of petroleum known or supposed to be on or under, or produced from, 18
the land.450 19
459 Recovery of costs and compensation from holder or proposed 20
holder 21
(1) This section applies if the State incurs, or becomes liable to pay-- 22
(a) costs relating to-- 23
(i) the taking under section 456(2) of land for the carrying out 24
of authorised activities for a licence or proposed licence; or 25
447 However, for land where native title exists, see sections 8 (Native title) and 855
(Application of provisions).
448 Acquisition of Land Act 1967, section 9 (Means by which land to be taken other than
by Brisbane City Council or an approved local government)
449 Acquisition of Land Act 1967, section 10 (Means by which land to be taken by
Brisbane City Council or an approved local government)
450 See also section 462 (Disposal of land taken by State).
s 460 301 s 460
Petroleum and Gas (Production and Safety) Bill 2004
(ii) the transfer of the land to the relevant person; or 1
(iii) the negotiation of the transfer, or any contract relating to the 2
transfer; or 3
(b) assessed compensation for the taking; or 4
(c) costs relating to the compensation or its assessment; or 5
(d) interest on the compensation or costs. 6
(2) The State may recover from the relevant person as a debt-- 7
(a) the reasonable amount of the costs; and 8
(b) the amount of the assessed compensation and the interest. 9
(3) In this section-- 10
"relevant person" means-- 11
(a) relevant licence holder; or 12
(b) if the taking was for authorised activities for a proposed 13
licence--the person who proposed to obtain the licence. 14
460 Power to enter land proposed to be taken 15
(1) The Minister may authorise a person (the "authorised person") to 16
enter land proposed to be taken under section 456 to report to the Minister 17
about the suitability of the land for the purpose for which it is proposed to 18
be taken. 19
(2) Subsection (1) applies even if the process for taking the land has not 20
started. 21
(3) The authorisation-- 22
(a) must be written; and 23
(b) may be given on conditions the Minister considers appropriate. 24
(4) Subject to section 461, the authorised person may enter the land and 25
carry out activities necessary or convenient for the report. 26
(5) However, the power under this section does not include the power to 27
enter a structure, or a part of a structure, used for residential purposes 28
without the consent of the occupier of the structure or part of the structure. 29
s 461 302 s 462
Petroleum and Gas (Production and Safety) Bill 2004
461 Requirements for entry to land proposed to be taken 1
(1) An authorised person under section 460 may enter land proposed to 2
be taken only if the following person is given notice of the proposed entry 3
at least 10 business days before the proposed entry-- 4
(a) if the land has an occupier--any occupier of the land; 5
(b) if the land does not have an occupier--its owner. 6
(2) The notice must -- 7
(a) identify the authorised person; and 8
(b) describe the land; and 9
(c) state-- 10
(i) that the authorised person has, under this section, been 11
authorised to enter the land; and 12
(ii) the purpose of the entry; and 13
(iii) the period of the entry. 14
(3) The chief executive may approve the giving of the notice by 15
publishing it in a stated way. 16
(4) The chief executive may give the approval only if satisfied the 17
publication is reasonably likely to adequately inform the person to whom 18
the notice is required to be given of the proposed entry. 19
(5) If the authorised person intends to enter the land and any occupier of 20
the land is present at the land, the person also must show, or make a 21
reasonable attempt to show, the occupier the person's authorisation under 22
this section. 23
462 Disposal of land taken by State 24
(1) The State may transfer land taken under section 456451 to any one 25
else, including, for example, the holder or proposed holder of a licence for 26
the land. 27
(2) The Acquisition of Land Act 1967, section 41452, applies to land taken 28
under section 456. 29
451 Section 456 (State's power to take land)
Acquisition of Land Act 1967, section 41 (Disposal of land)
452
s 463 303 s 464
Petroleum and Gas (Production and Safety) Bill 2004
(3) However, subsection (2) only applies if the State has not offered, or 1
proposed to offer, the land for sale to any holder, or proposed holder, of a 2
licence the area of which includes the land. 3
PART 5--PERMISSION TO ENTER LAND TO 4
EXERCISE RIGHTS UNDER A PIPELINE OR 5
PETROLEUM FACILITY LICENCE 6
Division 1--Applying for and obtaining permission 7
463 Applying for permission 8
(1) A person who holds, or who has applied for, a pipeline licence may 9
apply for permission (a "part 5 permission") to enter the area, or proposed 10
area, of the licence to construct or operate a pipeline the subject of the 11
licence or proposed licence. 12
(2) A person who holds, or who has applied for, a petroleum facility 13
licence may apply for permission (also a "part 5 permission") to enter the 14
area, or proposed area, of the licence to construct or operate the petroleum 15
facility the subject of the licence or proposed licence. 16
464 Requirements for making application 17
An application for a part 5 permission must-- 18
(a) be in the approved form; and 19
(b) be lodged at-- 20
(i) the office of the department for lodging applications for part 21
5 permissions, as stated in a gazette notice by the chief 22
executive; or 23
(ii) if no office is gazetted under subparagraph (i)--the office 24
stated in the approved form; or 25
(iii) otherwise--the office of the chief executive; and 26
(c) be accompanied by the fee prescribed under a regulation; and 27
(d) state the steps the applicant has taken to-- 28
s 465 304 s 466
Petroleum and Gas (Production and Safety) Bill 2004
(i) become the owner of the land; or 1
(ii) be granted an appropriate easement to construct or operate 2
the pipeline or petroleum facility; or 3
(iii) obtain the permission of the owner of the land to enter the 4
land to construct or operate the pipeline or petroleum 5
facility.453 6
465 Notice to owners about application 7
(1) The applicant must give each owner of the land notice 8
(a "consultation notice") of the application. 9
(2) The consultation notice must describe the land and state-- 10
(a) the purpose of the proposed part 5 permission; and 11
(b) any conditions the applicant proposes for the part 5 permission; 12
and 13
(c) a period (the "consultation period") during which-- 14
(i) the applicant will consult with each owner about the 15
proposed permission and the conditions; and 16
(ii) an owner may lodge submissions about the proposed part 5 17
permission and the conditions at-- 18
(A) the office of the department for lodging the 19
submissions, as stated in a gazette notice by the chief 20
executive; or 21
(B) if no office is gazetted under subsubparagraph (A)-- 22
the office of the chief executive. 23
(3) The consultation period must end at least 20 business days after each 24
owner has been given the consultation notice. 25
(4) The period may be extended by agreement between the applicant for 26
the part 5 permission and the owner. 27
466 Change in ownership during consultation period 28
(1) This section applies if-- 29
453 See sections 401 (Construction and operation of pipeline) and 441 (Construction
and operation of petroleum facility).
s 467 305 s 468
Petroleum and Gas (Production and Safety) Bill 2004
(a) an owner of the land (the "former owner") has been given a 1
consultation notice; and 2
(b) after the notice was given, the ownership of the land changes. 3
(2) The applicant is taken to have given the notice to the new owner of 4
the land when the former owner was given the notice. 5
(3) If the applicant becomes aware of the change, the applicant must give 6
the new owner a copy of the notice. 7
(4) A failure to comply with subsection (3) does not prevent the 8
application from being decided. 9
467 Deciding application 10
(1) The Minister may, after the consultation period has ended, grant or 11
refuse the part 5 permission. 12
(2) The Minister may impose conditions on the part 5 permission. 13
468 Criteria for decision 14
(1) The Minister may grant the part 5 permission only if satisfied of each 15
of the following-- 16
(a) the applicant has given each owner of the land a consultation 17
notice and the applicant has shown that each owner of the land 18
has received the notice; 19
(b) either-- 20
(i) the consultation period has ended and the Minister is 21
reasonably satisfied the applicant has made reasonable 22
attempts to consult with each owner of the land; or 23
(ii) before the end of the consultation period each owner of the 24
land has-- 25
(A) agreed to the grant of the part 5 permission; or 26
(B) given the applicant permission to enter the land; 27
(c) the applicant has decided the site of the pipeline or facility; 28
(d) it is reasonable to site the pipeline or petroleum facility on the 29
land; 30
s 469 306 s 470
Petroleum and Gas (Production and Safety) Bill 2004
(e) the land the subject of the part 5 permission is the minimum area 1
needed for the permission; 2
(f) the granting of the part 5 permission is in the public interest. 3
(2) In deciding the application any submissions lodged by an owner of 4
the land during the consultation period must be considered. 5
469 Statement of proposed resumption may be included 6
The part 5 permission may include a statement that the State intends to 7
resume the land the subject of the permission if the land is not, other than 8
because of the permission, pipeline land or petroleum facility land for the 9
licence, or proposed licence within 9 months after the permission takes 10
effect.454 11
470 Steps after and taking effect of part 5 permission 12
(1) On granting of the part 5 permission, the applicant and the owner of 13
the land the subject of the permission must be given a copy of it. 14
(2) The permission takes effect on the later of the following days-- 15
(a) the day it is granted; 16
(b) if the applicant does not hold the relevant pipeline or petroleum 17
facility licence--the day the licence is granted; 18
(c) another day fixed by the Minister.455 19
(3) The Minister must, after granting the part 5 permission, publish it in 20
the gazette. 21
454 For the State's power to take the land, see part 4 (Taking land for pipelines and
petroleum facilities).
455 For the authorised activities that may be carried out when the part 5 permission takes
effect (and, if the licence has not been granted, when it is granted), see sections 401
(Construction and operation of pipeline) and 441 (Construction and operation of
petroleum facility).
If the licence has not yet been granted, see also section 802 (Restriction on pipeline
construction or operation) and 803 (Restriction on petroleum facility construction or
operation).
s 471 307 s 472
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Effect and term of part 5 permission 1
471 Effect of part 5 permission 2
(1) The effect of the part 5 permission is that, under section 399 3
or 439,456 the land the subject of the permission becomes pipeline land or 4
petroleum facility land for the licence. 5
(2) The part 5 permission does not, of itself, give the holder the right to 6
enter the land to carry out authorised activities for the licence. 7
8
Note--
9
Chapter 5, parts 2 and 3457 provide for how the holder may enter the land to carry out
10
authorised activities.
472 Term of part 5 permission 11
(1) A part 5 permission under this part ceases to be in force-- 12
(a) if the land the subject of the permission becomes, other than 13
because of the permission, pipeline land or petroleum facility 14
land for the relevant licence; or 15
(b) if it is cancelled under section 473; or 16
(c) 9 months after it is granted. 17
(2) However, if the State has, within the 9 months, given a notice of 18
intention to resume the land under part 4,458 the part 5 permission continues 19
in force until-- 20
(a) the land is taken under part 4 and it is transferred to the licence 21
holder; or 22
(b) the taking of the land is discontinued.459 23
(3) On the part 5 permission ceasing to be in force, the Minister must 24
gazette a notice stating that it is no longer in force. 25
456 Section 399 (What is "pipeline land" for a pipeline licence) or 439 (What is
"petroleum facility land" for a petroleum facility licence)
457 Chapter 5, parts 2 (Private land) and 3 (Public land)
458 Part 4 (Taking land for pipelines and petroleum facilities)
459 See section 458 (Process for taking land) and the Acquisition of Land Act 1967,
part 3 (Discontinuance of taking of land).
s 473 308 s 475
Petroleum and Gas (Production and Safety) Bill 2004
473 Power to cancel part 5 permission 1
(1) The Minister may cancel the part 5 permission at any time. 2
(2) The cancellation takes effect when the holder is given an information 3
notice about the decision to cancel or, if the notice states a later day of 4
effect, on that later day. 5
PART 6--AMENDING LICENCE BY APPLICATION 6
474 Amendment applications that may be made 7
(1) A licence holder may apply to amend the licence. 8
9
Examples of how a licence may be amended--
10
· changing, removing or adding a new condition
11
· for a pipeline or petroleum facility licence--
12
· changing any configuration or specification stated in the licence for the
13
pipeline or facility; or
14
· increasing or reducing the area of the pipeline or petroleum facility land
15
· for a pipeline licence--changing a route of a pipeline
(2) Despite subsection (1), an application can not be made to amend the 16
licence in a way that is-- 17
(a) inconsistent with a mandatory condition, other than to change the 18
completion day for construction stated in the licence;460 or 19
(b) the same as, or substantially the same as, or inconsistent with, 20
any relevant environmental condition for the licence. 21
475 Requirements for making application 22
The application must be-- 23
(a) in the approved form; and 24
(b) lodged at-- 25
460 See sections 419 (Obligation to construct pipeline) and 452 (Obligation to construct
facility).
s 476 309 s 477
Petroleum and Gas (Production and Safety) Bill 2004
(i) the office of the department for lodging licence amendment 1
applications, as stated in a gazette notice by the chief 2
executive; or 3
(ii) if no office is gazetted under subparagraph (i)--the office 4
stated in the approved form; or 5
(iii) otherwise--the office of the chief executive; and 6
(c) accompanied by the fee prescribed under a regulation. 7
476 Notice requirements 8
(1) This section applies for the application if it seeks to extend the area 9
of the licence. 10
(2) If the area is for a pipeline, sections 408 and 411 apply as if the 11
application was a pipeline licence application for the proposed extended 12
area. 13
(3) If the area is for a petroleum facility, section 444 applies as if the 14
application was a petroleum facility licence application for the proposed 15
extended area.461 16
477 Deciding application 17
(1) The Minister may grant or refuse the amendment. 18
(2) In deciding the application, the relevant criteria under this chapter for 19
deciding an application to obtain the licence must, to the extent they are 20
relevant, be considered.462 21
461 Sections 408 (Notice of proposed application to relevant local government), 411
(Public notice requirement) and 444 (Notice of proposed application to relevant
local government)
462 See section 578 (Deciding application).
s 478 310 s 479
Petroleum and Gas (Production and Safety) Bill 2004
(3) The Minister may grant the application subject to the applicant's 1
written agreement to the Minister amending the licence in a stated way that 2
the Minister considers appropriate.463 3
4
Examples--
5
An application is to extend a pipeline or petroleum facility. The Minister may grant the
6
application subject to the applicant agreeing in writing to the Minister amending the
7
licence so that the extension must be completed--
8
(a) by a stated day; or
9
(b) in accordance with a stated standard or specification.
478 Information notice about refusal 10
On refusal of the application, the applicant must be given an information 11
notice about the decision to refuse. 12
PART 7--RENEWALS 13
479 Conditions for renewal application 14
(1) The holder of a licence, other than a survey licence, may apply to 15
renew the licence only if none of the following is outstanding-- 16
(a) an annual licence fee for the licence; 17
(b) a civil penalty under section 424 or 455 for nonpayment of an 18
annual licence fee; 19
(c) interest payable under section 588464 on the annual licence fee or 20
civil penalty; 21
(d) security for the licence, as required under section 488.465 22
(2) Also, the application can not be made-- 23
463 See section 848 (Power to correct or amend).
See also chapter 5, part 1 (Security).
464 Section 588 (Interest on amounts owing to the State other than for petroleum
royalty)
465 Section 488 (Power to require security for petroleum authority)
s 480 311 s 481
Petroleum and Gas (Production and Safety) Bill 2004
(a) more than 60 business days before the end of the term of the 1
licence; or 2
(b) after the licence has ended. 3
480 Requirements for making application 4
The application must be-- 5
(a) in the approved form; and 6
(b) lodged at-- 7
(i) the office of the department for lodging licence renewal 8
applications, as stated in a gazette notice by the chief 9
executive; or 10
(ii) if no office is gazetted under subparagraph (i)--the office 11
stated in the approved form; or 12
(iii) otherwise--the office of the chief executive; and 13
(c) state whether or not the applicant has complied with chapter 5, 14
part 7,466 for reports required to be lodged in relation to the 15
licence; and 16
(d) accompanied by-- 17
(i) the application fee prescribed under a regulation; and 18
(ii) if the application is made less than 20 business days before 19
the end of the term of the licence--the late fee prescribed 20
under a regulation. 21
481 Continuing effect of licence for renewal application 22
(1) This section applies if the term of the licence ends before the 23
application is decided. 24
(2) Despite the ending of the term, the licence continues in force until the 25
earlier of the following to happen-- 26
(a) the start of any renewed term of the licence; or 27
(b) a refusal of the application takes effect;467 or 28
466 Chapter 5, part 7 (Reporting)
467 See section 486 (When refusal takes effect).
s 482 312 s 483
Petroleum and Gas (Production and Safety) Bill 2004
(c) the application is withdrawn; or 1
(d) the licence is cancelled under this Act. 2
(3) If the licence is renewed, subsection (2) is taken never to have 3
applied for the period from the end of the term of the licence being 4
renewed, as stated in that licence.468 5
482 Deciding application 6
(1) The Minister may grant or refuse the renewal. 7
(2) However, the Minister must grant the renewal if the Minister 8
considers-- 9
(a) the applicant-- 10
(i) continues to be capable of carrying out authorised activities 11
for the licence; and 12
(ii) has substantially complied with the licence; and 13
(b) a relevant environmental authority for the renewed licence has 14
been issued. 15
(3) Also, the Minister may, as a condition of deciding to grant the 16
application, require the applicant to do all or any of the following within a 17
stated reasonable period-- 18
(a) pay the annual licence fee for the first year of the renewed 19
licence; 20
(b) give, under section 488,469 security for the renewed licence. 21
(4) If the applicant does not comply with the requirement, the Minister 22
may refuse the application. 23
483 Provisions and term of renewed licence 24
(1) The conditions of the renewed licence may be different from the 25
conditions or other provisions of the licence being renewed. 26
(2) However, a takeover condition may be imposed on a renewed licence 27
only if the licence being renewed was subject to that condition. 28
468 See section 482(3) (Deciding application).
469 Section 488 (Power to require security for petroleum authority)
s 484 313 s 484
Petroleum and Gas (Production and Safety) Bill 2004
(3) The renewed licence must state its term. 1
(4) The renewed licence may also state-- 2
(a) conditions or other provisions of the renewed licence, other than 3
conditions or provisions that are-- 4
(i) inconsistent with the mandatory conditions for that type of 5
licence; or 6
(ii) the same as, or substantially the same as, or inconsistent 7
with, any relevant environmental condition for the licence; 8
and 9
(b) a day for the renewed licence to take effect. 10
(5) However, the provisions of the renewed licence may exclude or 11
restrict the carrying out of an authorised activity for the licence. 12
(6) If the renewed licence is decided before the end of the term of the 13
licence being renewed as stated in that licence (the "previous term"), the 14
term of the renewed licence is taken to start from the end of the previous 15
term. 16
(7) If the renewed licence is decided after the previous term, the term of 17
the renewed licence starts immediately after the end of the previous term, 18
but-- 19
(a) the conditions of the renewed licence do not start until the licence 20
holder is given notice of them; and 21
(b) until the notice is given, the conditions of the licence being 22
renewed apply to the renewed licence as if they were its 23
conditions. 24
484 Criteria for decisions 25
The matters that must be considered in deciding the renewal application 26
and the provisions of the renewed licence include-- 27
(a) if the licence being renewed is a pipeline licence and the 28
applicant proposes to change the pipelines the subject of the 29
licence--the matters mentioned in section 415470 to the extent 30
they are relevant to the change; or 31
470 Section 415 (Criteria for decisions)
s 485 314 s 486
Petroleum and Gas (Production and Safety) Bill 2004
(b) if the licence being renewed is a petroleum facility licence and 1
the applicant proposes to change the facility--the 2
appropriateness of the configuration, construction methods, and 3
design for the change. 4
485 Information notice about refusal 5
On refusal of the application, the applicant must be given an information 6
notice about the decision to refuse. 7
486 When refusal takes effect 8
A refusal of the application does not take effect until the end of the 9
appeal period for the decision to refuse.471 10
471 See sections 824 (Period to appeal) and 826 (Stay of operation of decision).
s 487 315 s 487
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 5--COMMON PETROLEUM 1
AUTHORITY PROVISIONS472 2
PART 1--SECURITY 3
487 Operation and purpose of pt 1 4
(1) This part empowers the Minister to require, from time to time, the 5
holder of a petroleum authority, or a person who has applied for a 6
petroleum authority, to give the State security for the authority, or proposed 7
authority, of at least the amount prescribed under a regulation. 8
(2) The security may be used to pay-- 9
(a) any liability under this Act that the State incurs because of an act 10
or omission of the holder; and 11
(b) unpaid petroleum royalty or annual rent payable by the holder to 12
the State; and 13
(c) other unpaid amounts payable under this Act by the holder to the 14
State, including, for example any of the following payable by the 15
holder to the State-- 16
(i) unpaid civil penalty; 17
(ii) unpaid interest on unpaid petroleum royalty or annual rent; 18
(iii) any debt payable by the holder under section 587; and
473
19
(d) any compensation the State must pay under section 584474 20
because of the exercise, or purported exercise, of a remedial 21
power under section 580475 in relation to the authority, whether or 22
not the authority has ended. 23
472 See also chapter 1, part 5 (General provisions for petroleum authorities) and
chapter 14, part 2 (Miscellaneous provisions for all authorities under Act).
473 Section 587 (Minister's power to ensure compliance by petroleum authority holder)
474 Section 584 (Compensation for exercise of remedial power)
475 Section 580 (Power of authorised person to ensure compliance)
s 488 316 s 489
Petroleum and Gas (Production and Safety) Bill 2004
488 Power to require security for petroleum authority 1
(1) The Minister may, by information notice, require the holder of a 2
petroleum authority, or a person who has applied for a petroleum authority, 3
to give the State security for the authority, or proposed authority. 4
(2) The security must be-- 5
(a) in the form prescribed under a regulation; and 6
(b) of at least the amount prescribed under a regulation. 7
(3) The requirement may be made at any time. 8
489 Minister's power to require additional security 9
(1) The Minister may, by complying with subsections (3) to (5), require a 10
petroleum authority holder to increase the amount of security given for the 11
authority. 12
(2) The requirement may be made at any time. 13
(3) The Minister must give the holder notice-- 14
(a) stating the proposed increased amount of the security for the 15
authority; and 16
(b) inviting the holder to lodge, within a stated reasonable period, 17
submissions about the proposed increased amount at-- 18
(i) the office of the department for lodging the submissions, as 19
stated in a gazette notice by the chief executive; or 20
(ii) if no office is gazetted under subparagraph (i)--the office of 21
the chief executive. 22
(4) The stated period must end at least 20 business days after the holder 23
is given the notice. 24
(5) Any submissions lodged by the holder within the stated period must 25
be considered before deciding to make the requirement. 26
(6) The requirement does not take effect until the holder is given an 27
information notice about the decision or, if the notice states a later day of 28
effect, on that later day. 29
(7) In this section-- 30
"security" given, includes security given or increased because of a 31
requirement under subsection (1). 32
s 490 317 s 493
Petroleum and Gas (Production and Safety) Bill 2004
490 Interest on security 1
The State may keep any interest that accrues on security given under this 2
part for a petroleum authority. 3
491 Power to use security 4
The State may use security given under this part for a petroleum 5
authority, and any interest that accrues on the security, to make a payment 6
mentioned in section 487(2) in relation to the authority. 7
492 Replenishment of security 8
(1) This section applies, if-- 9
(a) under section 491, all or part of the security for a petroleum 10
authority has been used; and 11
(b) the authority is still in force. 12
(2) The Minister must give the authority holder a notice-- 13
(a) stating how much of the security has been used; and 14
(b) directing the holder to, within 30 days after the giving of the 15
notice, replenish the security for the authority up to the higher of 16
the following-- 17
(i) the amount prescribed under a regulation; 18
(ii) if the notice states that, under section 488, another
476
19
amount is required--the other amount. 20
493 Security not affected by change in authority holder 21
(1) This section applies if security for a petroleum authority is given 22
under this part for an authority that is still in force and there is a subsequent 23
change in the authority holder. 24
(2) Despite the subsequent change, the security, and any interest that 25
accrues on it, continues for the benefit of the State and may be used under 26
section 491. 27
476 Section 488 (Power to require security for petroleum authority)
s 494 318 s 495
Petroleum and Gas (Production and Safety) Bill 2004
(3) The authority holder's name as stated in any instrument under which 1
the security was given is taken to have been changed to reflect the 2
subsequent change. 3
494 Retention of security after petroleum authority ends 4
(1) Security, or part of security, given for a petroleum authority may be 5
kept for 1 year after the authority has ended. 6
(2) Also, if a claim made for the use of the security has not been 7
assessed, an appropriate amount of the security to meet the claim may be 8
kept until the claim has been assessed. 9
PART 2--PRIVATE LAND 10
Division 1--Preliminary 11
495 Application of pt 2 12
This part applies for a petroleum authority in relation to all private land 13
unless-- 14
(a) the authority holder owns the land; or 15
(b) the authority holder has the right, other than under this Act, to 16
enter the land to carry out authorised activities for the authority; 17
or 18
19
Example of a right, other than under this Act, for paragraph (b)--
20
an appropriate easement to construct or operate the pipeline the subject of a
21
pipeline licence
(c) the authority is a pipeline or petroleum facility licence and, under 22
section 399 or 439, the owner of the land had given the authority 23
holder written permission to enter the land to construct or operate 24
a pipeline the subject of the licence. 25
s 496 319 s 498
Petroleum and Gas (Production and Safety) Bill 2004
496 Provision for applying pt 2 to water monitoring authorities 1
In applying this part to private land in the area of a water monitoring 2
authority, a reference to an owner or occupier of the land is taken to include 3
a reference to the holder of a petroleum tenure or of another water 4
monitoring authority, the area of which includes the land. 5
Division 2--Requirement for entry notice for entry to private land in 6
area of petroleum authority 7
497 Requirement for entry notice to carry out authorised activities 8
(1) A person must not enter private land to carry out an authorised 9
activity for a petroleum authority unless-- 10
(a) the authority holder has, at least 10 business days before the 11
entry, given each owner and occupier of the land notice under 12
this part (an "entry notice") of the proposed entry; or 13
(b) the entry is needed to preserve life or property because of a 14
dangerous situation or emergency that exists, or may exist; or 15
(c) each owner and occupier of the land has agreed that an entry 16
notice is not required. 17
Maximum penalty--100 penalty units. 18
(2) If a person proposes to enter the land under subsection (1)(b), the 19
person must, if practicable, notify each owner and occupier of the land 20
orally before entering the land. 21
(3) An agreement under subsection (1)(c) is a "waiver of entry notice". 22
498 Waiver of entry notice 23
(1) A waiver of entry notice-- 24
(a) may be given only by signed writing; and 25
(b) must state each of the following-- 26
(i) that the owner or occupier has been told they are not 27
required to agree to the waiver of entry notice; 28
(ii) the authorised activities proposed to be carried out on the 29
land; 30
s 499 320 s 499
Petroleum and Gas (Production and Safety) Bill 2004
(iii) the period during which the land will be entered; 1
(iv) when and where the activities are proposed to be carried 2
out. 3
(2) The owner or occupier can not withdraw the waiver of entry notice 4
during the period. 5
(3) The waiver of entry notice ceases to have effect at the end of the 6
period. 7
499 Required contents of entry notice 8
(1) An entry notice must state each of the following-- 9
(a) the land proposed to be entered; 10
(b) the period during which the land will be entered (the "entry 11
period"); 12
(c) the activities proposed to be carried out on the land; 13
(d) when and where the activities are proposed to be carried out; 14
(e) contact details for-- 15
(i) the relevant petroleum authority holder; or 16
(ii) another person the holder has authorised to discuss the 17
matters stated in the notice. 18
(2) The entry period must not be longer than-- 19
(a) for an authority to prospect--6 months; or 20
(b) for another petroleum authority--1 year. 21
(3) However, the entry period may be longer if the person to whom the 22
notice is required to be given agrees in writing. 23
(4) Subject to subsections (2) and (3), an entry notice given to 1 owner or 24
occupier of the land may state a different entry period from an entry notice 25
given to another owner or occupier of the land. 26
(5) If a proposed activity is not likely to significantly disrupt activities 27
the occupier of the land ordinarily carries out on the land, the entry notice 28
may comply with subsection (1)(c) and (d) by generally describing the 29
nature and extent of the activity. 30
(6) The entry notice must include, or be accompanied by, an information 31
statement in the approved form about the rights and obligations of holders, 32
s 500 321 s 502
Petroleum and Gas (Production and Safety) Bill 2004
owners and occupiers relating to the entry of land under a petroleum 1
authority. 2
500 Giving entry notice by publication 3
(1) The chief executive may approve an authority holder giving an entry 4
notice by publishing it in a stated way. 5
(2) The publication may relate to more than 1 entry notice. 6
(3) The chief executive may give the approval only if satisfied the 7
publication is reasonably likely to adequately inform the person to whom 8
the notice is required to be given of the proposed entry at least 10 business 9
days before the entry is to happen. 10
(4) If the chief executive gives the approval, the entry notice may, instead 11
of complying with section 499(5), state where a copy of the information 12
statement mentioned in that subsection may be obtained or inspected, free 13
of charge. 14
Division 3--Access to private land outside area of petroleum authority 15
Subdivision 1--Preliminary 16
501 Application of div 3 17
This division applies for a petroleum authority in relation to all private 18
land outside the area of the authority.477 19
Subdivision 2--Access rights and access agreements 20
502 Access rights of petroleum authority holder 21
(1) Subject to section 503, the holder of a petroleum authority has the 22
following rights-- 23
477 For land in the area of a mining lease see section 6 (Relationship with Mineral
Resources Act) and the Mineral Resources Act, section 403 (Offences regarding
land subject to mining claim or mining lease).
s 503 322 s 503
Petroleum and Gas (Production and Safety) Bill 2004
(a) to cross the land if it is reasonably necessary to allow the holder 1
to enter the area of the authority; 2
(b) to carry out activities on the land that are reasonably necessary to 3
allow the crossing of the land. 4
5
Examples for paragraph (b)--
6
1. constructing a road or track
7
2. opening a gate or fence
(2) The rights under subsection (1) that may, under section 503, be 8
exercised are the "access rights" for the authority.478 9
(3) Land to which the access rights apply is "access land" for the 10
authority. 11
503 Restriction on exercise of access rights 12
(1) The access rights may be exercised only if-- 13
(a) the entry is needed to preserve life or property because of a 14
dangerous situation or emergency that exists, or may exist; or 15
(b) the following have agreed orally or in writing to the exercise of 16
the rights-- 17
(i) if exercising the rights is likely to have a permanent impact 18
on the land--each owner and the occupier of the land; 19
(ii) if exercising the rights is unlikely to have a permanent 20
impact on the land--each occupier of the land. 21
(2) An agreement mentioned in subsection (1)(b) is an "access 22
agreement".479 23
(3) In this section-- 24
"permanent impact", on the land, means a continuing effect on the land 25
or its use or a permanent or long-term adverse effect on its current 26
lawful use by an occupier of the land. 27
28
Example of an exercise of the rights that is likely to have a permanent impact--
29
building a road
478 See however section 804 (Duty to avoid interference in carrying out authorised
activities).
479 See also section 508(3) (Power of tribunal to decide access agreement).
s 504 323 s 505
Petroleum and Gas (Production and Safety) Bill 2004
1
Example of an exercise of the rights that unlikely to have a permanent impact--
2
opening or closing a gate
504 Owner or occupier must not unreasonably refuse to make access 3
agreement 4
(1) An owner or occupier of the land must not, if asked by a petroleum 5
authority holder, unreasonably refuse to make an access agreement for the 6
exercise of the access rights. 7
(2) For subsection (1), the owner or occupier does not unreasonably 8
refuse merely because the owner or occupier asks for agreement to be 9
subject to reasonable and relevant conditions offered by the owner or 10
occupier. 11
(3) If the holder asks the owner or occupier to make an access agreement 12
and the owner or occupier has not, within 20 business days, made the 13
agreement, the owner or occupier is taken to have refused to agree. 14
15
Note--
16
Either party may refer a refusal under subsection (1) or (3) to the tribunal to decide
17
whether the refusal is unreasonable. See section 508.480
505 Principles for deciding whether access is reasonable 18
(1) This section provides for matters to which regard must be had in 19
deciding whether-- 20
(a) it is reasonably necessary for a petroleum authority holder to 21
cross the land to allow the holder to enter the area of the 22
petroleum authority; or 23
(b) it is reasonably necessary for the holder to carry out activities on 24
the land to allow the crossing of the land; or 25
(c) the owner or occupier has unreasonably refused to make an 26
access agreement. 27
(2) The holder must first show that it not possible or reasonable to 28
exercise the access rights by using a formed road. 29
(3) After subsection (2) has been satisfied, the following must be 30
considered-- 31
480 Section 508 (Power of tribunal to decide access agreement)
s 506 324 s 507
Petroleum and Gas (Production and Safety) Bill 2004
(a) the nature and extent of any impact the exercise of the access 1
rights will have on the land and the owner or occupier's use and 2
enjoyment of it; 3
(b) how, when and where and the period during which the holder 4
proposes to exercise the access rights. 5
506 Provisions for access agreements 6
(1) Section 497 applies for any entry to the land by the a petroleum
481
7
authority holder as if the entry were an entry to carry out authorised 8
activities. 9
(2) However-- 10
(a) a written access agreement may include a waiver of entry notice 11
for the entry; and 12
(b) if an access agreement provides for alternative provisions to 13
section 497 for the entry, section 497 does not apply for so long 14
as the alternative provisions are in force. 15
(3) A written access agreement may include a compensation agreement 16
in relation to the exercise or future exercise of access rights by the holder.482 17
(4) This division does not limit or otherwise affect the ability of the 18
owner or occupier to grant the holder a right of access to the land, 19
including, for example, by the grant of an easement. 20
507 Access agreement binds successors and assigns 21
Subject to section 509,483 an access agreement binds the parties to it and 22
each of their personal representatives, successors in title and assigns. 23
481 Section 497 (Requirement for entry notice to carry out authorised activities)
482 For the authority holder's liability to compensate the owner or occupier, see
section 531 (General liability to compensate).
483 Section 509 (Power of tribunal to vary access agreement)
s 508 325 s 510
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Tribunal resolution 1
508 Power of tribunal to decide access agreement 2
(1) If a dispute arises between a petroleum authority holder and an owner 3
or occupier of the land (the "parties") about a matter mentioned in 4
section 505(1), any party to the dispute may apply to the tribunal for it to 5
decide the matter. 6
(2) In deciding the matter, the tribunal may impose conditions it 7
considers appropriate for the exercise of the access rights. 8
(3) Any conditions imposed under subsection (2) are taken to be-- 9
(a) if there is already an access agreement between the 10
parties--conditions of that agreement; or 11
(b) if there is no access agreement between the parties--an access 12
agreement between the parties. 13
509 Power of tribunal to vary access agreement 14
(1) An owner or occupier of the land or a petroleum authority holder may 15
apply to the tribunal to vary any access agreement between them. 16
(2) The tribunal may vary the access agreement only if it considers the 17
change is appropriate because of a material change in circumstances. 18
(3) Subsection (4) does not limit section 534.484 19
(4) This section does not prevent the owner or occupier and the holder 20
from agreeing to vary the access agreement. 21
510 Criteria for deciding access 22
In deciding an application under this subdivision, the tribunal must have 23
regard to section 505(2) and (3). 24
484 Section 534 (Tribunal review of compensation)
s 511 326 s 512
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Provisions for dealings or change in ownership 1
or occupancy 2
511 Entry notice or waiver of entry notice or access agreement not 3
affected by dealing 4
A transfer or mortgage of a petroleum authority does not affect an entry 5
notice or waiver of entry notice or an access agreement given or made in 6
relation to the authority. 7
512 Change in ownership or occupancy 8
(1) If, after the giving of an entry notice, the ownership or occupancy of 9
the relevant land changes-- 10
(a) the holder of the petroleum authority for which the entry notice 11
was given is taken to have given that notice to each new owner or 12
occupier of the land; and 13
(b) the requirement under section 497(1)(a)485 to give the notice at 14
least 10 business days before entry, does not apply for the new 15
owner or occupier. 16
(2) Subsection (1) does not affect the entry period stated in the notice. 17
(3) If, after the giving of a waiver of entry notice, the ownership or 18
occupancy of the relevant land changes, each new owner or occupier of the 19
land is taken to have given that waiver of entry notice. 20
(4) If the relevant petroleum authority holder becomes aware of a new 21
owner or occupier mentioned in subsection (1) or (3), the holder must, 22
within 15 business days, give the new owner or occupier a copy of the entry 23
notice or waiver of entry notice. 24
(5) If the holder does not comply with subsection (4), subsections (1) 25
to (3) cease to apply for the entry notice or consent. 26
485 Section 497 (Requirement for entry notice to carry out authorised activities)
s 513 327 s 513
Petroleum and Gas (Production and Safety) Bill 2004
Division 5--Periodic notice after entry of land 1
513 Notice to owners and occupiers 2
(1) This section applies if -- 3
(a) private land has been entered to carry out authorised activities for 4
a petroleum authority; or 5
(b) access land for a petroleum authority has been entered in the 6
exercise of the access rights over the land. 7
(2) The authority holder must, within 3 months after the end of the 8
period under subsection (3), (4) or (5), give each owner and occupier of the 9
land a notice stating-- 10
(a) what activities were carried out on the land during that period, 11
and where they were carried out; or 12
(b) if no activities were carried out on the land during the 13
period--that no activities were carried out on the land during that 14
period. 15
(3) If an entry notice was given for the entry to all owners or occupier of 16
the land, the period for subsection (2) is the period stated in the entry 17
notice. 18
(4) If all owners or occupiers of the land gave a waiver of entry notice for 19
the entry, the period for subsection (2) is the longer of following periods 20
after the giving of the waiver of entry notice-- 21
(a) either-- 22
(i) for an authority to prospect--6 months; or 23
(ii) for another petroleum authority--1 year; 24
(b) if, within the period under paragraph (a), each owner or occupier 25
of the land consented to a longer period--the longer period. 26
(5) If an entry notice for the entry was given to some of the owners or 27
occupiers and the rest of the owners or occupiers gave a waiver of entry 28
notice for the entry, the period for subsection (2) is the longer of the periods 29
under subsections (3) and (4). 30
s 514 328 s 515
Petroleum and Gas (Production and Safety) Bill 2004
PART 3--PUBLIC LAND486 1
Division 1--Public roads 2
Subdivision 1--Preliminary 3
514 Significant projects excluded from div 1 4
(1) This division does not apply for a petroleum authority that is, or is 5
included in, a project declared under the State Development and Public 6
Works Organisation Act 1971, section 26, to be a significant project. 7
(2) Subsection (1) does not limit or otherwise affect conditions the 8
Coordinator-General may, under the State Development and Public Works 9
Organisation Act 1971, part 4, division 7,487 recommend for the authority. 10
515 What is a "notifiable road use" 11
(1) A "notifiable road use", for a petroleum authority, is-- 12
(a) the use of a public road in the area of the authority for transport 13
relating to a seismic survey or drilling activity; or 14
(b) the use of a public road at more than the threshold rate if the 15
haulage relates to-- 16
(i) the transportation of petroleum produced or processed in the 17
area of the authority; or 18
(ii) the construction of a pipeline. 19
(2) Subsection (1)(b) applies even if the road is not on land in the area of 20
the petroleum authority. 21
(3) In this section-- 22
"threshold rate" means-- 23
486 See however section 878 (Exclusion of ch 5, pt 3, div 1 for continuance of particular
existing road uses).
487 State Development and Public Works Organisation Act 1971, part 4, division 7
(Relationship with other legislation)
s 516 329 s 516
Petroleum and Gas (Production and Safety) Bill 2004
(a) for a State-controlled road--50 000 t a year; or 1
(b) for another public road--10 000 t a year. 2
Subdivision 2--Notifiable road uses 3
516 Notice of notifiable road use 4
(1) It is a condition of each petroleum authority that its holder must not 5
use a public road for a notifiable road use unless the holder has given the 6
public road authority for the road notice that the holder proposes to carry 7
out the use.488 8
(2) The notice must-- 9
(a) be given-- 10
(i) at least 10 business days before the use starts; or 11
(ii) within a shorter period agreed to by the public road 12
authority in writing; and 13
(b) state each of the following-- 14
(i) the public road proposed to be used; 15
(ii) the type of haulage under the use; 16
17
Examples of type of haulage--
18
· vehicle type
19
· material hauled
(iii) the total weight of material proposed to be hauled; 20
(iv) when the use is proposed to start and end; 21
(v) the frequency of vehicle movements; 22
(vi) contact details for the holder or someone else the holder has 23
authorised to discuss the matters stated in the notice. 24
488 See also section 524 (Compensation to be addressed before carrying out notifiable
road use).
s 517 330 s 518
Petroleum and Gas (Production and Safety) Bill 2004
517 Directions about notifiable road use 1
(1) The public road authority for a public road may, by notice, give a 2
petroleum authority holder a direction (a "road use direction") about the 3
way the holder may use the road for notifiable road uses being carried out, 4
or proposed to be carried out, by the holder. 5
(2) The direction must-- 6
(a) be reasonable; and 7
(b) only be about-- 8
(i) preserving the condition of the road; or 9
(ii) the safety of road-users or the public; and 10
(c) be accompanied by, or include, an information notice about the 11
decision to give the direction. 12
13
Examples of what a direction may be about--
14
· when the road may be used
15
· the route for the movement of heavy vehicles
16
· safety precautions the holder must take
(3) The direction may also require the holder to-- 17
(a) carry out an assessment of the impacts likely to arise from the 18
notifiable road use the subject of the notice; and 19
(b) consult with the public road authority in carrying out the 20
assessment. 21
(4) However-- 22
(a) an assessment can not be required if the notifiable road use is 23
transport relating to a seismic survey or drilling activity; and 24
(b) the public road authority can not require an assessment of an 25
impact to the extent it has already been assessed under an EIS 26
under the Environmental Protection Act, or a similar document 27
under another Act. 28
518 Obligation to comply with road use directions 29
It is a condition of each petroleum authority that its holder must comply 30
with any road use direction given to its holder relating to the authority, 31
unless the holder has a reasonable excuse. 32
s 519 331 s 520
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Compensation for notifiable road uses 1
519 Liability to compensate public road authority 2
(1) The holder of each petroleum authority is liable to compensate the 3
public road authority for a public road for any cost, damage or loss it 4
incurs, or will incur, that is or will be caused by notifiable road uses carried 5
out by the holder that relate to the road. 6
7
Examples of a possible cost for subsection (1)--
8
· repair costs to rectify damage to the road caused, or that will be caused, by any of
9
the uses
10
· capital costs for unplanned upgrades of the road incurred, or that will be incurred,
11
because of any of the uses
12
· bring-forward costs, including interest charges, for a planned upgrade of the road
13
that, because of any of the uses, is or will be required earlier than planned
(2) The holder's liability under subsection (1) is the holder's 14
"compensation liability" to the public road authority. 15
(3) The compensation liability-- 16
(a) applies whether or not the holder has, under section 516, given 17
notice of the use; and 18
(b) is subject to section 525;489 and 19
(c) is in addition to, and does not limit or otherwise affect, the 20
holder's liability under another provision of this Act about 21
compensating the public road authority or anyone else. 22
520 Compensation agreement 23
(1) A petroleum authority holder and the public road authority for a 24
public road may enter into an agreement (a "compensation agreement") 25
about the holder's compensation liability to the public road authority 26
relating to the road. 27
(2) A compensation agreement may relate to all or part of the liability. 28
(3) A compensation agreement must-- 29
(a) be signed by, or for, the holder and the public road authority; and 30
489 Section 525 (Compensation not affected by change in administration or holder)
s 521 332 s 522
Petroleum and Gas (Production and Safety) Bill 2004
(b) state whether it is for all or part of the liability; and 1
(c) if it is for only part of the liability, state-- 2
(i) each part of the notifiable road use to which the agreement 3
relates; and 4
(ii) the period for which the agreement has effect; and 5
(d) provide for how and when the liability will be met. 6
(4) A compensation agreement may-- 7
(a) extend the holder's compensation liability to the public road 8
authority relating to the road to any renewal of the petroleum 9
authority; and 10
(b) provide for-- 11
(i) monetary or non-monetary compensation; or 12
(ii) a process by which it may be amended or enforced. 13
14
Example for paragraph (b)--
15
A compensation agreement may provide for compensation under it to be
16
reviewed on the happening of a material change in circumstances for the
17
petroleum authority, including a significant decrease or increase in the
18
extent of the relevant notifiable road use.
(5) Subsections (2) to (4) do not limit the matters that may be provided 19
for in a compensation agreement. 20
521 Deciding compensation through tribunal 21
(1) The public road authority for a public road or a petroleum authority 22
holder may apply to the tribunal for it to decide the holder's compensation 23
liability to the public road authority relating to the road. 24
(2) The tribunal may decide the compensation liability only to the extent 25
it is not subject to a compensation agreement. 26
(3) In making the decision, the tribunal may have regard to whether the 27
applicant has attempted to mediate or negotiate the compensation liability. 28
522 Criteria for decision 29
(1) The criteria the tribunal must consider, in deciding a compensation 30
application, include-- 31
s 523 333 s 523
Petroleum and Gas (Production and Safety) Bill 2004
(a) the reasonableness of the cost, damage or loss claimed; and 1
(b) if the public road authority is a local government--the extent to 2
which the cost, damage or loss claimed has been, will be or ought 3
reasonably to be or to have been, paid from-- 4
(i) amounts the petroleum authority holder has paid, or agreed 5
to pay, the public road authority for notifiable road uses; or 6
(ii) rates and charges under the Local Government Act 1993 7
paid or payable by the petroleum authority holder to the 8
public road authority; and 9
(c) any other relevant matter. 10
(2) In considering the reasonableness of any cost, damage or loss 11
claimed, the tribunal must have regard to-- 12
(a) any action taken, or proposal by, the petroleum authority holder 13
to, or to attempt to, avoid, minimise or remedy the cost, damage 14
or loss; and 15
(b) any relevant act or omission of the public road authority. 16
(3) Subsection (1)(b)(ii) applies whether or not the rates and charges 17
relate to notifiable road uses. 18
523 Tribunal review of compensation 19
(1) This section applies if-- 20
(a) the compensation liability, or future compensation liability, of a 21
petroleum authority holder to a public road authority has been 22
agreed to under a compensation agreement or decided by the 23
tribunal (the "original compensation"); and 24
(b) there has, since the agreement or decision, been a material 25
change in circumstances. 26
27
Example of a material change in circumstances--
28
a significant decrease or increase in the extent of the relevant notifiable
29
road use
(2) The public road authority or petroleum authority holder may apply to 30
the tribunal for it to review the original compensation. 31
(3) Sections 521 and 522 apply, with necessary changes, for the review 32
as if the application were a compensation application. 33
s 524 334 s 525
Petroleum and Gas (Production and Safety) Bill 2004
(4) The tribunal may, after carrying out the review, decide to confirm the 1
original compensation or amend it in a way the tribunal considers 2
appropriate. 3
(5) However, before making the decision, the tribunal must have regard 4
to-- 5
(a) the original compensation; and 6
(b) whether the applicant has attempted to mediate or negotiate an 7
amendment of the original compensation; and 8
(c) any change in the matters mentioned in section 522(1) since the 9
original compensation was agreed or decided. 10
(6) If the decision is to amend the original compensation, the original 11
compensation as amended under the decision, is for this Act, taken to be 12
the original compensation. 13
524 Compensation to be addressed before carrying out notifiable road 14
use 15
(1) It is a condition of each petroleum authority that its holder must not 16
carry out a notifiable road use on a public road unless-- 17
(a) the holder and the relevant public road authority have signed a 18
compensation agreement for the use; or 19
(b) the public road authority has given written consent to the 20
carrying out of the use; or 21
(c) a compensation application has been made to decide the holder's 22
compensation liability to the public road authority relating to the 23
road.490 24
(2) A consent under subsection (1)(b) may be given for any renewal of 25
the petroleum authority. 26
525 Compensation not affected by change in administration or 27
holder 28
(1) An agreement or decision under this part about compensation 29
liability is binding on-- 30
490 See section 521(1) (Deciding compensation through tribunal).
s 526 335 s 526
Petroleum and Gas (Production and Safety) Bill 2004
(a) the relevant public road authority and petroleum authority 1
holder; and 2
(b) each of their personal representatives, successors and assigns. 3
(2) Subsection (1) is subject to section 523.491 4
Division 2--Other public land 5
526 Public land authority approval required for particular activities 6
(1) This section does not apply for a notifiable road use.492 7
(2) A petroleum authority holder must not carry out an authorised 8
activity for the authority on public land493 unless-- 9
(a) the activity is an activity that may be carried out by a member of 10
the public without requiring the specific approval of the public 11
land authority for the land; or 12
13
Example--
14
travelling on a public road in the area of the petroleum authority
(b) the public land authority has given written approval for the 15
carrying out of the activity (a "public land authority 16
approval");494 or 17
(c) carrying out the activity is needed to preserve life or property 18
because of a dangerous situation or emergency that exists, or may 19
exist. 20
(3) A public land authority approval must not be unreasonably withheld. 21
(4) If the public land authority decides not to grant the public land 22
authority approval, it must give the holder an information notice about the 23
decision. 24
491 Section 523 (Tribunal review of compensation)
492 For notifiable road uses see sections 516 (Notice of notifiable road use) and
517 (Directions about notifiable road use).
493 For private land, see part 2 (Private land).
See also section 516 (Notice of notifiable road use).
494 For pipeline licences, see also chapter 4, part 2, division 4 (Key mandatory
conditions for pipeline licences).
s 527 336 s 529
Petroleum and Gas (Production and Safety) Bill 2004
527 Conditions of public land authority approval 1
(1) A public land authority may, subject to section 426,495 impose 2
relevant and reasonable conditions on a petroleum authority holder 3
including, for example, about giving notice at stated intervals of activities 4
carried out by, or for, the holder on the land.496 5
(2) However, the public land authority can not impose a condition that is 6
the same, or substantially the same as, or inconsistent with, a condition of 7
the petroleum authority or a relevant environmental authority. 8
(3) If the authority decides to impose a condition, other than a condition 9
agreed to or requested by the holder, it must give the holder an information 10
notice about the decision. 11
(4) In carrying out the activity, the holder must comply with the 12
conditions. 13
PART 4--ACCESS TO LAND IN AREA OF ANOTHER 14
PETROLEUM AUTHORITY OR A MINING TENEMENT 15
528 Application of pt 4 16
(1) This part applies for a petroleum authority (the "first authority") in 17
relation to land that is outside its area and in the area of another petroleum 18
authority or a mining tenement (the "second authority"). 19
(2) However, if the land is also private land or public land, this part does 20
not limit part 2 or 3.497 21
529 Access to land in area of mining lease or petroleum lease 22
If the second authority is a mining lease or petroleum lease, the first 23
authority holder may enter the land only if-- 24
495 Section 426 (Public road authority's obligations in aligning pipeline on road)
496 For enforcement of the conditions for pipeline construction, see chapter 4, part 2,
division 6, subdivision 2 (Works directions).
497 See also section 6 (Relationship with Mineral Resources Act) and the Mineral
Resources Act, section 403 (Offences regarding land subject to mining claim or
mining lease).
s 530 337 s 531
Petroleum and Gas (Production and Safety) Bill 2004
(a) the second authority holder has consented in writing to the entry; 1
and 2
(b) the first authority holder has lodged at the following office a 3
notice stating that the consent has been given-- 4
(i) the office of the department for lodging the notice, as stated 5
in a gazette notice by the chief executive; 6
(ii) if no office is gazetted under subparagraph (i)--the office of 7
the chief executive. 8
530 Access to land in area of another type of mining tenement or 9
petroleum authority 10
(1) If the second authority is not a mining lease or petroleum lease, the 11
first authority holder may do the following without the second authority 12
holder's consent-- 13
(a) cross the land if it is reasonably necessary to allow the first 14
authority holder to enter the area of the first authority; and 15
(b) carry out activities on the land that are reasonably necessary to 16
allow the crossing of the land. 17
(2) However, a right under subsection (1) may be exercised only if its 18
exercise does not adversely affect the carrying out of an authorised activity 19
for the second authority. 20
(3) Subsection (2) applies whether or not the authorised activity has 21
already started.498 22
PART 5--GENERAL COMPENSATION PROVISIONS499 23
531 General liability to compensate 24
(1) This section does not apply for-- 25
498 For overlapping ATP land, see however, section 364 (Restriction on authorised
activities on overlapping ATP land).
499 See however section 878 (Exclusion of ch 5, pt 3, div 1 for continuance of particular
existing road uses).
s 531 338 s 531
Petroleum and Gas (Production and Safety) Bill 2004
(a) a public land authority in relation to a notifiable road use; or 1
(b) a compensable effect caused by the exercise of an underground 2
water right for a petroleum tenure.500 3
(2) The holder of each petroleum authority is liable to compensate each 4
relevant owner or occupier of private or public land (an "eligible 5
claimant") for-- 6
(a) any compensatable effect the eligible claimant suffers that are 7
caused by-- 8
(i) authorised activities for the petroleum authority carried out 9
by, or for, the authority holder; and 10
(ii) the carrying out of an activity by a person authorised by the 11
holder if the holder has represented that the activity is an 12
authorised activity for the authority; and 13
(b) consequential damages the eligible claimant incurs because of a 14
compensatable effect. 15
(3) A petroleum authority holder's liability under subsection (1) to an 16
eligible claimant is the holder's "compensation liability" to the claimant. 17
(4) This section is subject to section 537.501 18
(5) In this section-- 19
"compensatable effect" means all or any of the following in relation to the 20
eligible claimant's land-- 21
(a) deprivation of possession of its surface; 22
(b) diminution of its value; 23
(c) diminution of the use made, or that may be made, of the land or 24
any improvement on it; 25
(d) severance of any part of the land from other parts of the land or 26
from other land that the eligible claimant owns; 27
(e) any cost or loss arising from the carrying out of activities under 28
the petroleum authority on the land. 29
500 See part 3, division 1, subdivision 3 (Compensation for notifiable road uses) and
part 5 (General compensation provisions).
501 Section 537 (Compensation not affected by change in ownership or occupancy)
s 532 339 s 532
Petroleum and Gas (Production and Safety) Bill 2004
"relevant owner or occupier" means a person (including a public land 1
authority) who own or occupies-- 2
(a) private land or public land that is included in the area of the 3
petroleum authority; or 4
(b) access land for the petroleum authority.502 5
532 Compensation agreement 6
(1) An eligible claimant and a petroleum authority holder may enter into 7
an agreement (a "compensation agreement") about the holder's 8
compensation liability to the claimant or any future compensation liability 9
that the holder may have to the claimant. 10
(2) A compensation agreement may relate to all or part of the liability or 11
future liability. 12
(3) A compensation agreement must-- 13
(a) be written and signed by, or for, the holder and the eligible 14
claimant; and 15
(b) state whether it is for all or part of the liability; and 16
(c) if it is for only part of the liability, state-- 17
(i) details of each activity, or effects of the activity, to which 18
the agreement relates; and 19
(ii) the period for which the agreement has effect; and 20
(d) provide for how and when the liability will be met. 21
(4) A compensation agreement may-- 22
(a) extend the holder's compensation liability to the claimant, or any 23
future compensation liability that the holder may have to the 24
claimant, to any renewal of the petroleum authority; and 25
(b) provide for-- 26
(i) monetary or non-monetary compensation; or 27
(ii) a process by which it may be amended or enforced. 28
502 For access land, see part 2, division 3 (Access to private land outside area of
petroleum authority).
s 533 340 s 534
Petroleum and Gas (Production and Safety) Bill 2004
1
Examples--
2
1. A compensation agreement may provide for the construction of a road
3
for the claimant.
4
2. A compensation agreement may provide for compensation under it to
5
be reviewed on the happening of a material change in circumstances
6
for the petroleum authority, including a change in the extent of
7
activities required under a later development plan for a petroleum
8
lease.
(5) If the petroleum authority is a pipeline or petroleum facility licence, a 9
compensation agreement about the holder's compensation liability may be 10
included in an easement relating to the licence. 11
(6) This section does not limit the matters that may be provided for in a 12
compensation agreement. 13
533 Deciding compensation through tribunal 14
(1) An eligible claimant or a petroleum authority holder may apply to the 15
tribunal for it to decide the holder's-- 16
(a) compensation liability to the claimant; or 17
(b) future compensation liability to the claimant for an authorised 18
activity for the authority proposed to be carried out by, or for, the 19
holder. 20
(2) However, the tribunal may decide the liability or future liability only 21
to the extent it is not subject to a compensation agreement. 22
534 Tribunal review of compensation 23
(1) This section applies if-- 24
(a) compensation liability, or future compensation liability, of a 25
petroleum authority holder to an eligible claimant has been 26
agreed to under a compensation agreement or decided by the 27
tribunal (the "original compensation"); and 28
(b) there has, since the agreement or decision, been a material 29
change in circumstances (the "change"). 30
(2) The eligible claimant or the authority holder may apply to the 31
tribunal for it to review the original compensation. 32
(3) In carrying out the review, the tribunal may review the original 33
compensation only to the extent it is affected by the change. 34
s 535 341 s 536
Petroleum and Gas (Production and Safety) Bill 2004
(4) If the tribunal considers the original compensation is not affected by 1
the change, it must not carry out or continue with the review. 2
(5) The tribunal may, after carrying out the review, decide to confirm the 3
original compensation or amend it in a way the tribunal considers 4
appropriate. 5
(6) If the decision is to amend the compensation, the original 6
compensation, as amended under the decision, is for this Act, taken to be 7
the original compensation. 8
535 Orders tribunal may make 9
(1) The tribunal may make any order it considers appropriate to meet or 10
enforce its decision on an application under this part. 11
(2) Without limiting subsection (1), the tribunal may order non-monetary 12
compensation as well as monetary compensation. 13
536 Compensation to be addressed before entry to private land 14
(1) This section applies to the holder of a petroleum authority, other than 15
a survey licence or petroleum facility licence. 16
(2) The holder must not enter private land unless-- 17
(a) the holder owns the land; or 18
(b) each eligible claimant for the land is-- 19
(i) a party to a compensation agreement about the holder's 20
compensation liability to the eligible claimant of at least to 21
the extent the liability relates to the activity proposed to be 22
carried out by the holder, and its effects; or 23
(ii) a party to an agreement (a "deferral agreement") that a 24
compensation agreement can be entered into after the entry; 25
or 26
(iii) an applicant or respondent to an application under 27
section 533 relating to the land; or 28
(c) the entry is to preserve life or property or because of a dangerous 29
situation or emergency that exists, or may exist. 30
(3) A deferral agreement must-- 31
s 537 342 s 537
Petroleum and Gas (Production and Safety) Bill 2004
(a) be written and signed by, or for, the holder and each eligible 1
claimant for the land; and 2
(b) state each of the following-- 3
(i) that the eligible claimant has been told the claimant is not 4
required to sign the agreement before a compensation 5
agreement has been entered into; 6
(ii) the authorised activities proposed to be carried out on the 7
land; 8
(iii) the period during which the land will be entered; 9
(iv) when and where the activities are proposed to be carried 10
out; 11
(v) when it is proposed that all or part of the liability for 12
compensation will be met; 13
(vi) the period for which the agreement has effect; 14
(vii) how the liability will be met. 15
537 Compensation not affected by change in ownership or occupancy 16
(1) A compensation agreement or a tribunal decision under this part is 17
for the benefit of, and is taken to have been agreed to or decided for and is 18
binding on-- 19
(a) the relevant eligible claimant; and 20
(b) the petroleum authority holder; and 21
(c) each of their successors and assigns, including successors and 22
assigns for the area of the relevant petroleum authority. 23
(2) Subsection (1) is subject to section 534.503 24
503 Section 534 (Tribunal review of compensation)
s 538 343 s 539
Petroleum and Gas (Production and Safety) Bill 2004
PART 6--OWNERSHIP OF PIPELINES, EQUIPMENT 1
AND IMPROVEMENTS 2
Division 1--Pipelines 3
538 Application of div 1 4
This division applies for a pipeline constructed or operated under a 5
petroleum tenure504 or pipeline licence. 6
539 General provision about ownership while tenure or licence is in 7
force for pipeline 8
(1) This section applies while the land on which the pipeline is 9
constructed is, and continues to be, on land in the area of the petroleum 10
tenure or licence. 11
(2) However, this section-- 12
(a) is subject to, and does not affect, any cancellation, transfer or 13
other action in relation to the pipeline taken under a takeover 14
condition; and 15
(b) ceases to apply for a transmission pipeline if, under part 10, 16
division 1, a transfer of the pipeline is approved. 17
(3) The pipeline is taken to be the personal property of the holder of the 18
petroleum tenure or pipeline licence under which pipeline is constructed or 19
operated. 20
(4) The pipeline remains the holder's personal property despite-- 21
(a) it having become part of the land; or 22
(b) the sale or other disposal of the land; or 23
(c) a purported transfer of, or other dealing with, the pipeline, unless 24
it is a permitted dealing that has taken effect under section 570.505 25
(5) The pipeline can not be-- 26
504 See sections 33 (Incidental activities) and 110 (Petroleum pipeline and water
pipeline construction and operation).
505 Section 570 (Conditions for permitted dealings)
s 540 344 s 541
Petroleum and Gas (Production and Safety) Bill 2004
(a) levied or seized in execution; or 1
(b) sold in exercise of sale or otherwise disposed of by a process 2
under a law of a State taken against the holder, or the owner of 3
the land. 4
(6) Subsections (3) to (5) apply despite-- 5
(a) an Act or law of a State; or 6
(b) a contract, covenant or claim of right under a law of a State. 7
540 Ownership afterwards 8
(1) Section 539 applies and continues to apply for the pipeline, and for 9
any subsequent pipeline licence for the pipeline, if the petroleum tenure or 10
pipeline licence ends or the land on which the pipeline is constructed 11
ceases to be in the area of the petroleum tenure or licence. 12
(2) However, the section is subject to-- 13
(a) section 580;506 and 14
(b) any condition of the former petroleum tenure or any takeover or 15
other condition of the former licence. 16
(3) Also, if the pipeline is decommissioned under section 559507 the 17
petroleum tenure or licence holder, or former petroleum tenure or licence 18
holder, may dispose of it to anyone else. 19
Division 2--Equipment and improvements 20
541 Application of div 2 21
(1) This division applies if-- 22
(a) equipment or improvements are taken, constructed or placed on 23
land in the area of a petroleum authority; and 24
(b) the equipment or improvements were taken, constructed or 25
placed on the land for use for an authorised activity for the 26
authority; and 27
506 Section 580 (Power of authorised person to ensure compliance)
507 Section 559 (Obligation to decommission pipelines)
s 542 345 s 542
Petroleum and Gas (Production and Safety) Bill 2004
(c) the authority continues in force. 1
(2) However, this division-- 2
(a) does not apply for a pipeline; and
508
3
(b) is subject to part 12.509 4
(3) In this section-- 5
"equipment" includes machinery and plant. 6
"improvements"-- 7
(a) does not include a petroleum well, water observation bore or 8
water supply bore; but 9
(b) does include any works constructed in connection with the well 10
or bore. 11
542 Ownership of equipment and improvements 12
(1) While the equipment or improvements are on the land, they remain 13
the property of the person who owned them immediately before they were 14
taken, constructed or placed on the land, unless that person otherwise 15
agrees.510 16
(2) However, for a petroleum well, water observation bore or water 17
supply bore, subsection (1) is subject to chapter 2, part 10, divisions 3 18
and 4.511 19
(3) Subsection (1) applies despite-- 20
(a) the plant or equipment having become part of the land; or 21
(b) the sale or other disposal of the land. 22
(4) The equipment or improvements can not be-- 23
(a) levied or seized in execution; or 24
508 For pipelines, see sections 559 (Obligation to decommission pipelines) and
539 (General provision about ownership while tenure or licence is in force for
pipeline).
509 Part 12 (Enforcement of end of authority and area reduction obligations)
510 See however section 560 (Obligation to remove equipment and improvements).
511 Chapter 2, part 10, divisions 3 (Transfers of petroleum wells, water observation
bores and water supply bores) and 4 (Decommissioning of petroleum wells, water
observation bores and water supply bores)
s 543 346 s 543
Petroleum and Gas (Production and Safety) Bill 2004
(b) sold in exercise of sale or otherwise disposed of by a process 1
under a law of a State taken against the holder, or the owner of 2
the land. 3
(5) This section applies despite-- 4
(a) an Act or law of a State; or 5
(b) a contract, covenant or claim of right under a law of a State. 6
PART 7--REPORTING 7
Division 1--Reporting provisions for petroleum tenures 8
Subdivision 1--General provisions512 9
543 Requirement of petroleum tenure holder to report outcome of 10
testing 11
(1) This section applies if-- 12
(a) an authority to prospect holder carries out testing mentioned in 13
section 73(1); or 14
(b) a petroleum lease holder carries out testing mentioned in 15
section 152(1). 16
(2) The holder must, within 40 business days after the testing ends, lodge 17
a report stating the outcome of the test at-- 18
(a) the office of the department for lodging testing outcome reports, 19
as stated in a gazette notice by the chief executive; or 20
(b) if no office is gazetted under paragraph (a)--the office of the 21
chief executive. 22
(3) The report must also state how much associated water was taken 23
during the testing. 24
512 See also section 367 (Requirement for giving of copy of relinquishment report).
s 544 347 s 545
Petroleum and Gas (Production and Safety) Bill 2004
544 Notice by petroleum tenure holder about discovery and 1
commercial viability 2
(1) If a petroleum tenure holder makes a petroleum discovery, the holder 3
must, within 5 business days, lodge a notice of the discovery. 4
(2) A notice under subsection (1) must also state the geological 5
significance of the discovery. 6
(3) The holder, must within the relevant period, lodge a notice about 7
whether or not petroleum production from the reservoir the subject of the 8
notice is commercially viable, or potentially commercially viable, for the 9
holder. 10
(4) A notice under this section must be lodged at-- 11
(a) the office of the department for lodging the notice, as stated in a 12
gazette notice by the chief executive; or 13
(b) if no office is gazetted under paragraph (a)--the office of the 14
chief executive. 15
(5) In this section-- 16
"relevant period" means-- 17
(a) the period from 5 business days after the discovery to 45 business 18
days after the discovery; or 19
(b) if the chief executive has, within the 45 business days, agreed to a 20
longer period--the longer period. 21
545 Relinquishment report by tenure holder 22
(1) If part of the area of a petroleum tenure is relinquished as required or 23
authorised under this Act,513 its holder must, within 6 months, lodge a 24
report-- 25
(a) describing-- 26
(i) the authorised activities for the tenure carried out in the part; 27
and 28
(ii) the results of the activities; and 29
513 See chapter 2, part 1, division 4, subdivision 2 (Relinquishment condition and
related provisions), sections 62(4) (Deciding application), 148 (Power to require
relinquishment), 329 (Power to impose relinquishment condition) and 790 (Types of
noncompliance action that may be taken).
s 546 348 s 546
Petroleum and Gas (Production and Safety) Bill 2004
(b) including other information prescribed under a regulation. 1
Maximum penalty--200 penalty units. 2
(2) The report must be lodged at-- 3
(a) the office of the department for lodging relinquishment reports, 4
as stated in a gazette notice by the chief executive; or 5
(b) if no office is gazetted under paragraph (a)--the office of the 6
chief executive.514 7
546 End of tenure report 8
(1) If a petroleum tenure ends, the person who held the petroleum tenure 9
immediately before it ended must, within 6 months, lodge a report-- 10
(a) describing-- 11
(i) the authorised activities for the tenure carried out in the 12
relevant area; and 13
(ii) the results of the activities; and 14
(b) stating any other information prescribed under a regulation. 15
Maximum penalty--150 penalty units.515 16
(2) However, subsection (1) does not apply for an activity about which 17
the person has already lodged a report under section 545, 552(3) or 576.516 18
(3) A report under subsection (1) must be lodged at-- 19
(a) the office of the department for lodging the report, as stated in a 20
gazette notice by the chief executive; or 21
(b) if no office is gazetted under paragraph (a)--the office of the 22
chief executive. 23
(4) In this section-- 24
"relevant area" means the area of the petroleum tenure immediately 25
before it ended. 26
514 See also section 367 (Requirement for giving of copy of relinquishment report).
515 See also section 552(3) (Obligation to lodge annual reports).
516 Sections 545 (Relinquishment report by tenure holder), 552 (Obligation to lodge
annual reports) and 576 (Requirements for making surrender application)
s 547 349 s 548
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Records and samples 1
547 Requirement to keep records and samples 2
(1) A petroleum tenure holder must, for the period and in the way 3
prescribed under a regulation, keep the records and samples about 4
authorised activities carried out under the petroleum tenure as prescribed 5
under a regulation. 6
Maximum penalty--500 penalty units. 7
(2) For subsection (1), the prescribed records may be-- 8
(a) basic exploration data; or 9
10
Examples of basic exploration data--
11
· seismic acquisition and processing reports
12
· information obtained from airborne geophysical surveying
13
· other information about petroleum or other materials at or below
14
ground level
15
· a well completion report for an exploration or appraisal well
(b) opinions, conclusions, technical consolidations and advanced 16
interpretations based on basic exploration data. 17
548 Requirement to lodge records and samples 18
(1) A person who, under section 170, is required to keep a record or 19
sample, must, for the services of the State, lodge a copy of the record and a 20
part of the sample within 6 months after the earlier of the following 21
(the "required time")-- 22
(a) the day the record or sample was acquired or made; 23
(b) the day the relevant petroleum tenure ends. 24
Maximum penalty--500 penalty units. 25
(2) The copy of the record and part of the sample must be lodged at the 26
following office (the "relevant office")-- 27
(a) the office of the department for lodging the copy of the record 28
and part of the sample, as stated in a gazette notice by the chief 29
executive; 30
(b) if no office is gazetted under paragraph (a)--the office of the 31
chief executive. 32
s 549 350 s 550
Petroleum and Gas (Production and Safety) Bill 2004
(3) If the chief executive gives the person a notice asking the person for 1
more of the sample, the person must lodge it at the relevant office within 2
the reasonable time stated in the notice (also the "required time") unless 3
the holder has a reasonable excuse. 4
Maximum penalty--500 penalty units. 5
(4) The chief executive may extend the required time by up to 1 year if-- 6
(a) the person asks for the extension before the required time; and 7
(b) the chief executive is satisfied the extension is necessary. 8
(5) However, the extension must not end later than-- 9
(a) for subsection (1)--6 months after the required time; or 10
(b) for subsection (2)--1 year after the required time. 11
Subdivision 3--Releasing required information 12
549 Meaning of "required information" 13
"Required information", for a petroleum tenure, is information (in any 14
form) about authorised activities carried out under the tenure that the tenure 15
holder has lodged under this Act, including, for example-- 16
(a) a sample; and 17
(b) data and other matters mentioned in section 553(2). 18
550 Public release of required information 19
(1) It is a condition of each petroleum tenure that the holder authorises 20
the chief executive to do the following, after the end of any confidentiality 21
period prescribed under a regulation-- 22
(a) publish, in the way prescribed under a regulation, required 23
information for the tenure for public use, including, for example, 24
to support petroleum exploration, production and development; 25
(b) on payment of a fee prescribed under a regulation, make it 26
available to any person. 27
(2) Any confidentiality period prescribed under subsection (1) ceases if 28
the information is about an authorised activity carried out solely in an area 29
that is no longer in the area of the petroleum tenure. 30
s 551 351 s 552
Petroleum and Gas (Production and Safety) Bill 2004
1
Example--
2
The required information is a well completion report about a well drilled on particular
3
land in the area of an authority to prospect. Subsection (1) ceases to apply if all of that
4
land is relinquished under the relinquishment condition.
(3) The authorisation is not affected by the ending of the tenure. 5
551 Chief executive may use required information 6
(1) It is a condition of each petroleum tenure that its holder authorises 7
the chief executive to use required information, for purposes reasonably 8
related to this Act, required for the tenure. 9
(2) The authorisation is not affected by the ending of the tenure. 10
Division 2--Reporting provisions for all petroleum authorities 11
552 Obligation to lodge annual reports 12
(1) Each petroleum authority holder must, within 2 months after each of 13
the authority's anniversary days, lodge a report (an "annual report") for 14
the 12 months that ended on the last anniversary day that includes the 15
information about the authority prescribed under a regulation. 16
Maximum penalty--150 penalty units. 17
(2) If a petroleum authority ends, its former holder must, within 18
2 months, lodge a report that includes the information prescribed under 19
subsection (1) for the period from the authority's last anniversary day to 20
when it ended. 21
Maximum penalty--150 penalty units. 22
(3) A report under this section must be lodged at-- 23
(a) the office of the department for lodging annual reports, as stated 24
in a gazette notice by the chief executive; or 25
(b) if no office is gazetted under paragraph (a)--the office of the 26
chief executive. 27
(4) In this section-- 28
"anniversary day", for a petroleum authority, means each day that is the 29
anniversary of the day the authority took effect. 30
s 553 352 s 553
Petroleum and Gas (Production and Safety) Bill 2004
553 Power to require information or reports about authorised 1
activities to be kept or given 2
(1) A regulation, or the chief executive, may, for the services of the State, 3
require a petroleum authority holder to-- 4
(a) keep, in the way prescribed under a regulation, stated 5
information, or types of information, about authorised activities 6
carried out under the petroleum authority; or 7
8
Example of a prescribed way of keeping information--
9
in a stated digital format
(b) lodge a notice giving stated information, or types of information, 10
or stated reports at stated times or intervals about authorised 11
activities carried out under the petroleum authority. 12
13
Example of a stated time--
14
for a report about a petroleum well, 6 months after its completion
(2) For subsection (1)(b), the information or report required to be given 15
or kept may be-- 16
(a) basic exploration data; or 17
18
Examples of basic exploration data--
19
· seismic acquisition, processing and interpretation reports
20
· information obtained from airborne geophysical surveying
21
· other information about petroleum or other materials at or below
22
ground level
23
· a well completion report for an exploration or appraisal well
(b) opinions, conclusions, technical consolidations and advanced 24
interpretations based on basic exploration data. 25
(3) A notice under subsection (1)(b)-- 26
(a) may state-- 27
(i) a format required for giving the information; and 28
(ii) a degree of precision required for the giving of the 29
information; and 30
(b) must be lodged at-- 31
(i) the office of the department for lodging reports under this 32
section, as stated in a gazette notice by the chief executive; 33
or 34
s 554 353 s 554
Petroleum and Gas (Production and Safety) Bill 2004
(ii) if no office is gazetted under subparagraph (i)--the office of 1
the chief executive. 2
(4) A person of whom a requirement under subsection (1) has been made 3
must comply with the requirement. 4
Maximum penalty--100 penalty units. 5
(5) In this section-- 6
"information" includes documents, records and samples. 7
"services of the State" has the same meaning that the term has in relation 8
to the State of Queensland under the Copyright Act 1968 (Cwlth), 9
section 183(1).517 10
PART 8--GENERAL PROVISIONS FOR CONDITIONS 11
AND AUTHORISED ACTIVITIES 12
Division 1--Other mandatory conditions for all petroleum authorities 13
554 Operation of div 1 14
This division provides for general mandatory conditions for all 15
petroleum authorities. 16
17
Note--
18
1. The following provisions also impose mandatory conditions on all petroleum
19
authorities--
20
· chapter 2, part 1, divisions 1 and 4
21
· chapter 2, part 2, divisions 1 and 5
22
· chapter 2, part 10
23
· chapter 3, part 4, division 4
517 Copyright Act 1968 (Cwlth), section 183 (Use of copyright material for the services
of the Crown)
s 555 354 s 555
Petroleum and Gas (Production and Safety) Bill 2004
1
· chapter 5.518
20(2).519 2
2. For what is a `mandatory condition', see section
555 Obligation to prevent spread of declared pests 3
(1) The holder of a petroleum authority must take reasonable steps to 4
ensure the holder and anyone else acting for the holder does not disperse 5
the reproductive material of any declared pest in-- 6
(a) entering or leaving land in the area of the authority; or 7
(b) carrying out an authorised activity for the authority. 8
(2) However, subsection (1) does not apply if the dispersal is authorised 9
under the Land Protection (Pest and Stock Route Management) Act 2002. 10
(3) In this section-- 11
"declared pest" means any of the following-- 12
(a) a declared pest animal or declared pest plant under the Land 13
Protection (Pest and Stock Route Management) Act 2002; 14
(b) an animal or plant declared under a relevant local law to be-- 15
(i) a declared pest animal or declared pest plant; or 16
(ii) the equivalent (however called) of a declared pest animal or 17
declared pest plant for the local law. 18
"relevant local law" means a local law of a local government the area of 19
which includes the place at which the dispersal takes place. 20
"reproductive material", of an animal or plant, means any part of the 21
animal or plant that is capable of asexual or sexual reproduction. 22
518 Chapter 2 (Petroleum tenures and related matters), part 1 (Authorities to prospect),
divisions 1 (Key authorised activities) and 4 (Key mandatory conditions for
authorities to prospect)
Chapter 2, part 2 (Petroleum leases), divisions 1 (Key authorised activities) and 5
(General mandatory conditions for petroleum leases)
Chapter 2, parts 10 (General provisions for petroleum wells, water supply bores and
water observation bores)
Chapter 3 (Provisions for coal seam gas), part 4 (Additional provisions for
authorities to prospect and data acquisition authorities), division 4 (Conditions)
Chapter 5 (Common petroleum authority provisions)
519 Section 20 (What are the "conditions" of a petroleum authority)
s 556 355 s 557
Petroleum and Gas (Production and Safety) Bill 2004
1
Examples of reproductive material of an animal--
2
egg or part of an egg, semen
3
Examples of reproductive material of a plant--
4
1. seed or part of a seed
5
2. bulb or part of a bulb, rhizome, stolon or tuber
6
3. stem or leaf cutting
556 Requirement to consider using formed roads 7
(1) This section applies if, under this Act, the holder of a petroleum 8
authority proposes to enter any land. 9
(2) The authority holder must consider using any formed road that is 10
available for the entry if using the road is practicable. 11
(3) If the holder decides not to use the formed road, the holder must take 12
reasonable steps to consult with the owner of the land before entering the 13
land. 14
(4) A failure to comply with this section does not invalidate or otherwise 15
affect the entry. 16
557 Obligation to comply with Act and prescribed standards 17
(1) The holder of a petroleum authority must -- 18
(a) comply with this Act; and 19
(b) in carrying out an authorised activity for the authority, comply 20
with-- 21
(i) any standard that the authority provides for the activity; and 22
(ii) to the extent that the authority does not provide a standard 23
for the activity--any standard prescribed under a regulation 24
for carrying out the activity. 25
(2) In this section-- 26
"standard" includes an Australian Standard or a code or protocol. 27
s 558 356 s 559
Petroleum and Gas (Production and Safety) Bill 2004
558 Obligation to survey if Minister requires 1
(1) The Minister may, by notice to the holder of a petroleum authority, 2
require the holder to survey or re-survey the area of the authority within a 3
stated reasonable period. 4
(2) The holder must cause the survey or re-survey to be carried out by a 5
person registered as a cadastral surveyor under the Surveyors Act 2003. 6
(3) The holder must pay any costs incurred in complying with the notice. 7
Division 2--Provisions for when authority ends or area reduced 8
559 Obligation to decommission pipelines 9
(1) The holder of a petroleum authority must, before the 10
decommissioning day, decommission, in the way prescribed under a 11
regulation, any pipeline in the area of the authority. 12
Maximum penalty--1 000 penalty units.520 13
(2) However, subsection (1)-- 14
(a) does not apply if the pipeline was constructed or operated under 15
another petroleum authority; and 16
(b) ceases to apply if the operation of the pipeline becomes an 17
authorised activity for another petroleum authority. 18
(3) In this section-- 19
"decommissioning day" means the later of the following days-- 20
(a) the earlier of the following-- 21
(i) the day the authority ends; 22
(ii) the day the land ceases to be in the area of the authority; 23
(b) if, before the day provided for under paragraph (a), the Minister 24
fixes a day--that day; 25
(c) if, before a day fixed under paragraph (b), the Minister fixes a 26
later day--that day. 27
520 See also section 539(3) and (4) (General provision about ownership while tenure or
licence is in force for pipeline).
s 560 357 s 560
Petroleum and Gas (Production and Safety) Bill 2004
560 Obligation to remove equipment and improvements 1
(1) This section applies for equipment or improvements in the area of a 2
petroleum authority or on access land for the authority that are being, or 3
have been, used for an authorised activity for the authority. 4
(2) However, this section does not apply for-- 5
(a) a petroleum well, pipeline, water observation bore or water 6
supply bore or;521 7
(b) equipment or improvements on land that, under section 101,522 8
ceases to be in the area of an authority to prospect. 9
(3) The authority holder must, before the removal day, remove the 10
equipment or improvements from the land, unless the owner of the land 11
otherwise agrees. 12
Maximum penalty--500 penalty units. 13
(4) To remove any doubt, it is declared that subsection (3) applies even if 14
the equipment or improvements are not owned by the holder.523 15
(5) In this section-- 16
"equipment" includes machinery and plant. 17
"removal day" means the later of the following days-- 18
(a) the earlier of the following-- 19
(i) the day the authority ends; 20
(ii) the day the land ceases to be in the area of the authority; 21
(b) if, before the day provided for under paragraph (a), the Minister 22
fixes a day--that day; 23
(c) if, before a day fixed under paragraph (b), the Minister fixes a 24
later day--that day. 25
521 For petroleum wells, water observation bores and supply bores, see chapter 2,
part 10 (General provisions for petroleum wells, water supply bores and water
observation bores).
For pipelines, see sections 539 (General provision about ownership while tenure or
licence is in force for pipeline) and 559 (Obligation to decommission pipelines).
522 Section 101 (Area of authority to prospect reduced on grant of petroleum lease)
523 For ownership of the equipment or improvements see section 542 (Ownership of
equipment and improvements).
s 561 358 s 562
Petroleum and Gas (Production and Safety) Bill 2004
561 Authorisation to enter to facilitate compliance with s 555 or div 2 1
(1) The Minister may, by notice, authorise a former holder of a 2
petroleum authority to enter any of the following land to comply with, or 3
remedy a contravention of, section 555 or this division-- 4
(a) the land to which section 555 or this division applies ("primary 5
land"); 6
(b) any other land ("secondary land") necessary or desirable to 7
cross for access to the primary land.524 8
(2) Parts 2 (other than division 3), 3 and 5 and sections 20 and 557525 9
apply to the former holder for the purpose of the authorisation as if-- 10
(a) the authority were still in force (the "notional authority"); and 11
(b) the former holder is the holder of the notional authority; and 12
(c) the primary land and any secondary land are in the area of the 13
notional authority; and 14
(d) the compliance or the remedying of the contravention were 15
authorised activities for the notional authority. 16
(3) However, the power under this section does not include the power to 17
enter a structure, or a part of a structure, used for residential purposes 18
without the consent of the occupier of the structure or part of the structure. 19
(4) If the former holder intends to enter the land and any occupier of the 20
land is present at the land, the former holder also must show, or make a 21
reasonable attempt to show, the occupier the former holder's authorisation 22
under this section. 23
Division 3--Provisions for authorised activities 24
562 General restriction on carrying out authorised activities 25
The carrying out of an authorised activity for a petroleum authority is 26
subject to-- 27
524 See also section 580 (Power of authorised person to ensure compliance).
525 Parts 2 (Private land), 3 (Public land) and 5 (General compensation provisions)
Part 2, division 3 (Access to private land outside area of petroleum activity)
Sections 20 (What are the "conditions" of a petroleum authority) and 557
(Obligation to comply with Act and prescribed standards)
s 563 359 s 564
Petroleum and Gas (Production and Safety) Bill 2004
(a) the provisions of the authority; and 1
(b) compliance with the authority holder's rights and obligations 2
under this chapter and chapters 2, 3 and 4. 3
563 Who may carry out authorised activity for petroleum authority 4
holder 5
(1) An authorised activity for a petroleum authority may be carried out 6
for the holder by any of the following persons acting within the scope of 7
the person's authority from the holder-- 8
(a) if the holder is a corporation--its officers and employees; 9
(b) the holder's employees or partners who are individuals; 10
(c) agents of, or contractors for, the holder; 11
(d) officers and employees of, or agents of, or contractors for, agents 12
or contractors mentioned in paragraph (c). 13
14
Example--
15
A petroleum lease holder may also enter into a coordination arrangement under which
16
another party to the arrangement may carry out an authorised activity for the lease. See
17
section 234(1).
(2) The authority may be express, or implied from-- 18
(a) the nature of the relationship between the person and the holder; 19
or 20
(b) the duties the person performs for the holder; or 21
(c) the duties a person mentioned in subsection (1) customarily 22
performs. 23
PART 9--PETROLEUM REGISTER 24
564 Petroleum register 25
(1) The chief executive must keep a register of details about-- 26
(a) petroleum authorities; and 27
(b) coordination arrangements; and 28
s 565 360 s 566
Petroleum and Gas (Production and Safety) Bill 2004
(c) mortgages and subleases of petroleum authorities mentioned in 1
section 568;526 and 2
(d) trigger thresholds in relation to the make good obligation for 3
petroleum tenures. 4
(2) The chief executive may also keep in the register information that the 5
chief executive considers appropriate about matters relating to this Act or 6
another Act. 7
565 Keeping of register 8
(1) The chief executive must include in the petroleum register the 9
information prescribed under a regulation. 10
(2) If, under this Act, there is a change relating to information required to 11
be kept in the register or to information that, under section 564(2) the chief 12
executive keeps in the register, the chief executive must-- 13
(a) amend the register to reflect the change; and 14
(b) record in the register-- 15
(i) when the information was amended; and 16
(ii) for a permitted dealing--when it took effect or is to take 17
effect. 18
(3) For subsection (2), if the change requires approval under this Act, the 19
change happens when the approval takes effect. 20
566 Access to register 21
The chief executive must-- 22
(a) keep the petroleum register open for inspection by the public 23
during office hours on business days at the places the chief 24
executive considers appropriate; and 25
(b) allow a person to take extracts, free of charge, from the register; 26
and 27
(c) give a person who asks for a copy of all or part of a notice, a 28
document or information held in the register the copy on 29
payment of the fee prescribed under a regulation. 30
526 Section 568 (What is a "permitted dealing")
s 567 361 s 568
Petroleum and Gas (Production and Safety) Bill 2004
567 Chief executive may correct register 1
(1) The chief executive may correct the petroleum register if satisfied-- 2
(a) the register is incorrect; and 3
(b) the correction will not prejudice the rights, recorded in the 4
register, of a petroleum authority holder, a person who holds an 5
interest in a petroleum authority or a person who is a party to a 6
coordination arrangement. 7
(2) The power to correct includes power to correct information in the 8
register or a document forming part of the register. 9
(3) If the register is corrected, the chief executive must record in it-- 10
(a) the state of the register before the correction; and 11
(b) the time, date and circumstances of the correction. 12
(4) A correction under this section has the same effect as if the relevant 13
error had not been made. 14
(5) For subsection (1)(b), a right is not prejudiced if the relevant person 15
acquired or has dealt with the right with actual or constructive knowledge 16
that the register was incorrect and how it was incorrect. 17
PART 10--DEALINGS 18
Division 1--Permitted dealings 19
568 What is a "permitted dealing" 20
(1) Each of the following is a "permitted dealing"-- 21
(a) a transfer of a petroleum authority, or of a share in a petroleum 22
authority; 23
(b) a transfer of a pipeline the subject of a pipeline licence; 24
(c) a mortgage of a petroleum authority, or a share in a mortgage of a 25
petroleum authority; 26
(d) a release, transfer or surrender of a mortgage, or a share in a 27
mortgage, mentioned in paragraph (a); 28
s 569 362 s 569
Petroleum and Gas (Production and Safety) Bill 2004
(e) a sublease, or a share in a sublease, of a petroleum lease, as 1
provided for under a coordination arrangement; 2
(f) a transfer of a sublease mentioned in paragraph (e), as provided 3
for under the coordination arrangement. 4
(2) However, a dealing mentioned in section 569(1) is not a permitted 5
dealing. 6
(3) In this section-- 7
"transfer" includes-- 8
(a) a transmission by death; and 9
(b) a transfer by operation of law; and 10
11
Example--
12
A petroleum authority is held by individuals as joint tenants and one of
13
them dies. A transfer in relation to the authority includes a record of the
14
death, to record the passing by survivorship of the deceased holder's share
15
of the authority to the other holders.
(c) a record of the change of name of a petroleum authority holder. 16
569 Prohibited dealings 17
(1) The following dealings are prohibited-- 18
(a) a transfer of a survey licence; 19
(b) a transfer of a pipeline authorised under section 33 or 110;527 20
(c) a dealing that has the effect of transferring part of the area of a 21
petroleum tenure; 22
(d) a transfer of a pipeline licence, unless the pipelines the subject of 23
the licence and the pipeline land for the licence are also to be 24
transferred to the transferee of the pipeline licence; 25
527 Section 33 (Incidental activities) or 110 (Petroleum pipeline and water pipeline
construction and operation)
See also part 6 (Ownership of pipelines, equipment and improvements), division 1
(Pipelines).
s 570 363 s 571
Petroleum and Gas (Production and Safety) Bill 2004
(e) a transfer of a petroleum facility licence, unless the petroleum 1
facility and petroleum facility land the subject of the licence are 2
also to be transferred to the transferee of the licence 3
(2) A dealing or transfer prohibited under subsection (1) is of no effect. 4
570 Conditions for permitted dealings 5
(1) This section does not apply for a permitted dealing if it is a transfer 6
of a pipeline required or made under a condition of a pipeline licence. 7
(2) A permitted dealing has no effect until it has been approved under 8
division 2. 9
(3) A permitted dealing, once approved, takes effect on-- 10
(a) the day the dealing is concluded; or 11
(b) if, under section 573(5), the approval provides for a later day for 12
the dealing to take effect--that later day. 13
(4) The approval of a permitted dealing does not of itself give it any 14
more effect or validity than it would have had, had subsection (1) not been 15
enacted. 16
Division 2--Obtaining approval for permitted dealing 17
571 Minister may give indication for proposed permitted dealing 18
(1) A party to a proposed permitted dealing may ask the Minister, before 19
concluding the dealing, to indicate-- 20
(a) whether the Minister is likely to approve of it; and 21
(b) if conditions are likely to be imposed on the dealing--what the 22
conditions are likely to be. 23
(2) The request may be made in any way the Minister considers 24
appropriate. 25
(3) However, the Minister must not consider the request unless the 26
request fee prescribed under a regulation has been paid. 27
(4) The party must give the Minister the information the Minister 28
requires to give the indication. 29
s 572 364 s 573
Petroleum and Gas (Production and Safety) Bill 2004
572 Applying for approval 1
(1) A holder of relevant petroleum authority, pipeline or interest who is 2
party to a permitted dealing may apply for approval of the dealing. 3
(2) The application must be-- 4
(a) in the approved form; and 5
(b) lodged at-- 6
(i) the office of the department for lodging applications to 7
approve permitted dealings, as stated in a gazette notice by 8
the chief executive; or 9
(ii) if no office is gazetted under subparagraph (i)--the office 10
stated in the approved form; or 11
(iii) otherwise--the office of the chief executive; and 12
(c) accompanied by each of the following-- 13
(i) the instrument for the dealing, signed by the parties to the 14
dealing, and a copy of it certified to be a true copy of the 15
original; 16
(ii) for a transfer of a share in a petroleum authority, a written 17
consent to the transfer by-- 18
(A) each person who holds that interest; and 19
(B) if the interest is subject to a mortgage--the mortgagee; 20
(iii) the fee prescribed under a regulation. 21
573 Deciding application 22
(1) The Minister may decide to grant or refuse the approval. 23
(2) However, for the following transfers of a petroleum authority, the 24
approval may be granted only if the proposed transferee is a holder of the 25
relevant environmental authority for the petroleum authority-- 26
(a) a transfer under which the proposed transferee is someone who 27
holds a different Australian Business Number to any proposed 28
transferor; 29
(b) a transfer under which all of one holder's share in the petroleum 30
authority will be transferred to another holder of the authority. 31
(3) Also, subject to subsection (2), the approval must be granted if-- 32
s 574 365 s 574
Petroleum and Gas (Production and Safety) Bill 2004
(a) the proposed permitted dealing is any of the following-- 1
(i) a mortgage of a petroleum authority or of a share in a 2
mortgage of a petroleum authority; 3
(ii) a release, transfer or surrender of a mortgage, or a share in 4
mortgage, mentioned in subparagraph (i); 5
(iii) a sublease, or a share in a sublease, of a petroleum lease, as 6
provided for under a coordination arrangement; 7
(iv) a transfer of a sublease, or a share in a sublease, mentioned 8
in subparagraph (iii), as provided for under the coordination 9
arrangement; or 10
(b) under section 571, an indication of the approval has been given 11
for the proposed permitted dealing and any conditions imposed 12
under that section have been complied with. 13
(4) Despite subsection (3)(b), the approval may be refused if-- 14
(a) the request for the indication contained incorrect material 15
information or omitted material information; and 16
(b) had the Minister been aware of the discrepancy, the Minister 17
would not have given the indication. 18
(5) The approval may provide that it has effect from when the dealing 19
was concluded or a later stated day. 20
(6) On refusal of the approval, the applicant must be given an 21
information notice about the decision to refuse. 22
574 Criteria for decision 23
(1) This section does not apply if, under section 573(3), the approval 24
must be granted. 25
(2) The matters that must be considered in deciding whether to approve 26
the permitted dealing include each of the following-- 27
(a) the application and any additional information given for the 28
application; 29
(b) hardship the applicant would suffer if the dealing is not 30
approved; 31
(c) for a transfer of a petroleum authority-- 32
s 575 366 s 575
Petroleum and Gas (Production and Safety) Bill 2004
(i) the relevant criteria under chapter 2 or 4 to obtain the 1
authority; and 2
(ii) whether or not the transfer will disadvantage activities 3
under the authority; and 4
(iii) the role the proposed transferee would play in authorised 5
activities for the authority; 6
(d) if the petroleum authority is a petroleum tenure, whether, in 7
relation to the tenure-- 8
(i) any petroleum royalty is payable and unpaid by its holder; 9
or 10
(ii) the holder has failed to comply with section 594, 595, 599 11
or 602.528 12
(e) the public interest. 13
PART 11--SURRENDERS 14
575 Requirements for surrenders 15
(1) The holder of a petroleum authority may surrender all or part of the 16
area of the authority only if, under this part-- 17
(a) an application has been made for approval of the surrender; and 18
(b) the surrender has been approved. 19
(2) In this section-- 20
"surrender", for a petroleum authority, does not include a relinquishment 21
of an area if the relinquishment is required or authorised under this 22
Act529-- 23
528 Section 594 (Obligation to lodge royalty return), 595 (Fee for late lodgment of
royalty return), 599 (Annual royalty returns) or 602 (Interest on unpaid petroleum
royalty or additional petroleum royalty).
529 See chapter 2, part 1, division 4, subdivision 2 (Relinquishment condition and
related provisions), sections 62(4) (Deciding application), 148 (Power to require
relinquishment), 329 (Power to impose relinquishment condition) and 790 (Types of
noncompliance action that may be taken).
s 576 367 s 576
Petroleum and Gas (Production and Safety) Bill 2004
(a) within the area of an authority to prospect-- 1
(i) required under the relinquishment condition for authorities 2
to prospect; or 3
(ii) authorised under chapter 2, part 1, division 4, 4
subdivision 2;530 or 5
(iii) required under an additional relinquishment condition for 6
the authority; or 7
(b) within the area of a petroleum lease required under-- 8
(i) section 148; or
531
9
(ii) a relinquishment condition for the lease.532 10
576 Requirements for making surrender application 11
(1) A surrender application must be-- 12
(a) in the approved form; and 13
(b) lodged at-- 14
(i) the office of the department for lodging surrender 15
applications, as stated in a gazette notice by the chief 16
executive; or 17
(ii) if no office is gazetted under subparagraph (i)--the office 18
stated in the approved form; or 19
(iii) otherwise--the office of the chief executive; and 20
(c) accompanied by the fee prescribed under a regulation. 21
(2) A surrender application must also be accompanied by a report by the 22
applicant about authorised activities for the authority carried out on the 23
area the subject of the application, and the results of the activities. 24
Maximum penalty for subsection (2)--150 penalty units. 25
530 Chapter 2, part 1, division 4, subdivision 2 (Relinquishment condition and related
provisions)
531 Section 148 (Power to require relinquishment)
532 See section 329 (Power to impose relinquishment condition).
s 577 368 s 578
Petroleum and Gas (Production and Safety) Bill 2004
577 Notice of application required for particular pipeline licences 1
(1) This section applies only if the petroleum authority is a pipeline 2
licence through which fuel gas is transported. 3
(2) A surrender application can not be made for the authority unless the 4
holder has, at least 3 months before the application is lodged, lodged a 5
notice of the holder's intention to make the application (an "application 6
notice"). 7
(3) The application notice must-- 8
(a) state the reasons for the proposed surrender; and 9
(b) be lodged at-- 10
(i) the office of the department for lodging application notices, 11
as stated in a gazette notice by the chief executive; or 12
(ii) if no office is gazetted under subparagraph (i)--the office of 13
the chief executive. 14
(4) The chief executive may, after the lodging of the application notice, 15
give the holder notice requiring the holder to give the chief executive 16
further relevant written information by a reasonable stated day. 17
(5) The holder must comply with the chief executive's notice unless the 18
holder has a reasonable excuse. 19
Maximum penalty for subsection (5)--100 penalty units. 20
578 Deciding application 21
(1) The Minister may approve a surrender only if-- 22
(a) up to the day the application was made, the holder had submitted 23
all reports required to be submitted under this Act; and 24
(b) the Minister considers the surrender is not against the public 25
interest; and 26
(c) for a surrender of all of the area of the petroleum authority--all 27
of the relevant environmental authority has been cancelled or 28
surrendered; and 29
(d) for a surrender of part the area of the petroleum authority--the 30
relevant environmental authority has been amended or partially 31
surrendered in a way that reflects the partial surrender of the 32
petroleum authority. 33
s 579 369 s 580
Petroleum and Gas (Production and Safety) Bill 2004
(2) The matters that must be considered in deciding whether to approve a 1
surrender include the extent to which the applicant has complied with the 2
conditions of the authority. 3
(3) If the application is for part of the area of a petroleum authority, the 4
surrender may be approved subject to the applicant's written agreement to 5
the Minister amending the conditions applying to the rest of the area of the 6
authority in a stated way that the Minister considers appropriate.533 7
579 Notice and taking effect of decision 8
(1) On approval of a surrender, the applicant must be given notice of the 9
decision. 10
(2) A surrender takes effect on the day after the decision is made. 11
(3) The applicant must be given an information notice about-- 12
(a) a decision to refuse to approve a surrender; or 13
(b) a decision to approve a surrender subject to the applicant's 14
written agreement to the Minister amending the petroleum 15
authority in a stated way. 16
(4) However, subsection (3) does not apply for an amendment mentioned 17
in subsection (3)(b) if the applicant has agreed in writing to the 18
amendment. 19
PART 12--ENFORCEMENT OF END OF AUTHORITY 20
AND AREA REDUCTION OBLIGATIONS 21
580 Power of authorised person to ensure compliance 22
(1) This section applies if the holder, or former holder, of a petroleum 23
authority has not complied with section 292, 559 or 560 in relation to land 24
(the "primary land").534 25
533 See section 848 (Power to correct or amend).
534 Sections 292 (Obligation to decommission), 559 (Obligation to decommission
pipelines) and 560 (Obligation to remove equipment and improvements)
s 581 370 s 581
Petroleum and Gas (Production and Safety) Bill 2004
(2) A person authorised (the "authorised person") by the chief 1
executive may, by complying with section 581, exercise the following 2
powers ("remedial powers")-- 3
(a) enter the primary land and do all things necessary to ensure the 4
requirement is complied with; and 5
(b) enter any other land ("secondary land") necessary or desirable 6
to cross for access to the primary land. 7
(3) However, remedial powers do not include power to enter a structure, 8
or a part of a structure, used for residential purposes without the consent of 9
the occupier of the structure or part of the structure. 10
(4) The authorisation-- 11
(a) must be written; and 12
(b) may be given on conditions the Minister considers appropriate. 13
581 Requirements for entry to ensure compliance 14
(1) Remedial powers may be exercised in relation to the primary or 15
secondary land under section 580 only if a following person is given notice 16
of the proposed entry at least 10 business days before the proposed entry-- 17
(a) if the land has an occupier--any occupier of the land; 18
(b) if the land does not have an occupier--its owner. 19
(2) The notice must-- 20
(a) identify the authorised person; and 21
(b) describe the land; and 22
(c) state-- 23
(i) that the authorised person has, under this section, been 24
authorised to enter the land; and 25
(ii) the purpose of the entry; and 26
(iii) the period of the entry. 27
(3) The chief executive may approve the giving of the notice by 28
publishing it in a stated way. 29
(4) The chief executive may give the approval only if satisfied the 30
publication is reasonably likely to adequately inform the person to whom 31
the notice is required to be given of the proposed entry. 32
s 582 371 s 584
Petroleum and Gas (Production and Safety) Bill 2004
(5) If the authorised person intends to enter the land and any occupier of 1
the land is present at the land, the person also must show, or make a 2
reasonable attempt to show, the occupier the person's authorisation under 3
this section. 4
582 Duty to avoid damage in exercising remedial powers 5
In exercising remedial powers, a person must take all reasonable steps to 6
ensure the person causes as little inconvenience, and does as little damage, 7
as is practicable. 8
583 Notice of damage because of exercise of remedial powers 9
(1) If a person exercising remedial powers damages land or something 10
on it, the person must give the owner and any occupier of the land notice of 11
the damage. 12
(2) If for any reason it is not practicable to comply with subsection (1), 13
the person must-- 14
(a) leave the notice at the place where the damage happened; and 15
(b) ensure it is left in a conspicuous place and in a reasonably secure 16
way. 17
(3) The notice must state-- 18
(a) particulars of the damage; and 19
(b) that the owner or occupier may claim compensation under 20
section 584 from the State. 21
584 Compensation for exercise of remedial powers 22
(1) This section applies if an owner or occupier of land (the "claimant") 23
suffers a cost, damage or loss because of the exercise, or purported 24
exercise, of remedial powers. 25
(2) Compensation is payable to the claimant by the State for the cost, 26
damage or loss. 27
(3) The compensation may be claimed and ordered in a proceeding 28
brought in a court of competent jurisdiction. 29
(4) The court may order the compensation only if it is satisfied it is just 30
to make the order in the circumstances of the particular case. 31
s 585 372 s 586
Petroleum and Gas (Production and Safety) Bill 2004
585 Ownership of thing removed in exercise of remedial powers 1
(1) This section applies if-- 2
(a) remedial powers are exercised in relation to land; and 3
(b) in the exercise of the powers a thing is removed from the land; 4
and 5
(c) immediately before the removal, the thing was the property of-- 6
(i) the holder, or former holder, of a petroleum authority in 7
relation to whom the powers were exercised; or 8
(ii) an agent of, or contractor for, the holder. 9
(2) On the removal, the thing becomes the property of the State. 10
(3) The State may deal with the thing as it considers appropriate, 11
including, for example, by destroying it or giving it away. 12
(4) The chief executive may deal with the thing for the State. 13
(5) If the State sells the thing, the State may, after deducting the costs of 14
the sale, return the net proceeds of the sale to the former owner of the 15
thing.535 16
586 Recovery of costs of and compensation for exercise of remedial 17
power 18
(1) The State may recover from the responsible person as a debt any-- 19
(a) reasonable costs the State, or an authorised person under 20
section 580, incurs in exercising a remedial power; and 21
(b) compensation payable by the State under section 584 in relation 22
to the exercise of the remedial power.536 23
(2) However, in any proceeding to recover the costs, any relevant net 24
proceeds of sale mentioned in section 585 must be deducted from the 25
amount claimed for the costs. 26
(3) In this section-- 27
535 See also section 586(2) (Recovery of costs of and compensation for exercise of
remedial power).
536 See also section 841 (Additional orders that may be made on conviction).
s 587 373 s 587
Petroleum and Gas (Production and Safety) Bill 2004
"responsible person" means the holder, or former holder, of the petroleum 1
authority in relation to which the remedial powers were exercised. 2
PART 13--MISCELLANEOUS PROVISIONS 3
587 Minister's power to ensure compliance by petroleum authority 4
holder 5
(1) This section applies if-- 6
(a) the holder of a petroleum authority has not complied with a 7
requirement, under this Act, of the holder; and 8
(b) no other provision of this Act allows someone other than the 9
holder to ensure compliance with the requirement. 10
(2) The Minister may take any action the Minister considers appropriate 11
to ensure all or part of the requirement is complied with if-- 12
(a) subsections (3) and (4) have been complied with; or 13
(b) the holder has agreed to the Minister taking the action. 14
(3) The Minister must give the holder notice-- 15
(a) stating the requirement and the action the Minister proposes to 16
take; and 17
(b) inviting the holder to lodge, within a stated reasonable period, 18
submissions about the proposed action at-- 19
(i) the office of the department for lodging the submissions, as 20
stated in a gazette notice by the chief executive; or 21
(ii) if no office is gazetted under paragraph (i)--the office of the 22
chief executive. 23
(4) Any submissions lodged by the holder within the stated period must 24
be considered before deciding to take the action. 25
(5) A decision to take the action does not take effect until the holder is 26
given an information notice about the decision. 27
s 588 374 s 589
Petroleum and Gas (Production and Safety) Bill 2004
(6) The State may recover from the holder as a debt any reasonable costs 1
it incurs in the exercise of the power under subsection (2).537 2
588 Interest on amounts owing to the State other than for petroleum 3
royalty 4
(1) This section does not apply in relation to petroleum royalty.538 5
(2) Interest is payable to the State on any amount owing under this Act 6
by anyone to the State and unpaid from time to time after the relevant day. 7
8
Examples of an amount that may be owing under this Act--
9
annual or other rent, a civil penalty for nonpayment of annual rent or an annual licence
10
fee
(3) The interest accrues daily at the rate prescribed under a regulation on 11
the unpaid amount for the period starting on the day immediately after the 12
amount became payable and ending on the day the amount owing on which 13
interest is payable is paid in full, both days inclusive. 14
(4) Any amount received in payment of the unpaid amount or the interest 15
must first be applied in payment of the interest. 16
(5) Subsection (4) applies despite any order or direction of the payer. 17
(6) In this section-- 18
"relevant day" means the following-- 19
(a) for an amount for annual or other rent or a civil penalty for 20
nonpayment of annual rent--the day that is 3 months after the 21
last day for payment of the rent or civil penalty; 22
(b) for another amount--the day the amount becomes owing. 23
589 Recovery of unpaid amounts 24
If a provision of this Act requires a petroleum authority holder to pay the 25
State an amount (including interest) the State may recover the amount from 26
the holder as a debt. 27
537 See also section 841 (Additional orders that may be made on conviction).
538 For interest on unpaid petroleum royalty, see section 602 (Interest on unpaid
petroleum royalty and additional petroleum royalty).
s 590 375 s 591
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 6--PETROLEUM ROYALTY 1
PART 1--IMPOSITION OF PETROLEUM ROYALTY 2
590 Imposition of petroleum royalty on petroleum producers 3
(1) A petroleum producer must pay the State petroleum royalty for 4
petroleum that the producer produces. 5
(2) The petroleum royalty-- 6
(a) must be paid on or before the time prescribed under a regulation; 7
and 8
(b) is payable at the rate prescribed under a regulation on the value 9
of the petroleum at the prescribed time. 10
(3) The value of petroleum for the petroleum royalty is the value 11
provided for under a regulation or worked out in the way prescribed under 12
a regulation. 13
(4) This section is subject to any exemption under section 591. 14
591 Exemptions from petroleum royalty 15
(1) Petroleum produced is exempt from the petroleum royalty if the 16
Minister is satisfied-- 17
(a) the petroleum was unavoidably lost before it could be measured; 18
or 19
(b) the petroleum was used for an authorised activity for the 20
petroleum tenure under which the petroleum was produced and 21
the activity related to petroleum production; or 22
23
Example--
24
the use of coal seam gas for onsite power generation for authorised
25
activities relating to petroleum production under a relevant petroleum lease
(c) the petroleum is incidental coal seam gas that, under the Mineral 26
Resources Act, section 318CN539 was used for mining under the 27
mining lease under which the gas was produced; or 28
539 Mineral Resources Act, section 318CN (Use that may be made under mining lease
of incidental coal seam gas)
s 591 376 s 591
Petroleum and Gas (Production and Safety) Bill 2004
(d) that, before the petroleum was produced in the State, it was 1
produced outside the State and injected or reinjected into a 2
natural underground reservoir in the State; or 3
(e) the petroleum is petroleum on which petroleum royalty has 4
already been paid; or 5
(f) the petroleum was flared or vented540 as part of testing or 6
evaluating the feasibility of petroleum production and 7
sections 73 or 152 and 543 have been complied with for the 8
testing; or 9
(g) the petroleum was flared or vented under a 1923 Act petroleum 10
tenure and the Minister approves the exemption of the 11
requirement to pay petroleum royalty in relation to the flaring or 12
venting.541 13
(2) However-- 14
(a) subsection (1)(c) ceases to apply if, under chapter 2, part 6, 15
division 3,542 the petroleum becomes the property of the State; 16
and 17
(b) subsection (1)(d) does not apply if, after the petroleum royalty 18
was paid, property in the petroleum is taken to have passed to the 19
State under chapter 2, part 6, division 3; and 20
(c) subsection (1)(e) does not apply for petroleum royalty required 21
to be paid under a condition mentioned in section 73(4) 22
or 152(4). 23
540 See however sections 72 and 151 (Restriction on flaring or venting).
541 Sections 73 (Permitted period for production or storage testing) or 152 (Permitted
period for production or storage testing) and 543 (Requirement of petroleum tenure
holder to report outcome of testing)
See also section 875 (Continuation of petroleum royalty exemption for flaring or
venting under 1923 Act).
542 Chapter 2, part 6, division 3 (Provisions for stored petroleum or prescribed storage
gas after petroleum lease ends)
s 592 377 s 593
Petroleum and Gas (Production and Safety) Bill 2004
592 Minister may decide measurement if not made or royalty 1
information not given 2
(1) If-- 3
(a) the measurement of, or information about, petroleum is required 4
for the purpose of a royalty return; and 5
(b) the measurement has not been made or the information has not 6
been given or lodged as required under this Act (whether or not a 7
royalty return has been lodged); 8
the Minister may decide what the required measurement or information 9
is.543 10
(2) The decided measurement or information is taken to be the required 11
measurement or information. 12
(3) On the making of the decision, the relevant petroleum producer must 13
be given an information notice about the decision. 14
PART 2--ROYALTY RETURNS 15
593 Application of pt 2 16
(1) This part applies to a petroleum producer for each month in which-- 17
(a) the producer produces petroleum; or 18
(b) petroleum that has, at any time, been produced by the producer 19
is-- 20
(i) disposed of by the producer, by supplying it to anyone else, 21
flaring or venting it or otherwise; or 22
(ii) stored for the producer in a natural underground reservoir. 23
(2) This part applies whether or not the producer is or was, under part 1, 24
required to pay petroleum royalty for the production. 25
543 See also chapter 8 (Petroleum and fuel gas measurement) and section 801
(Petroleum producer's measurement obligations).
s 594 378 s 596
Petroleum and Gas (Production and Safety) Bill 2004
594 Obligation to lodge royalty return 1
(1) This section applies subject to sections 596 and 598. 2
(2) The producer must, on or before the last business day of the month 3
immediately following the month in which the petroleum was produced, 4
disposed of or stored, lodge a written return containing the information 5
prescribed under a regulation about the production, disposal or storage at-- 6
(a) the office of the department for lodging royalty returns, as stated 7
in a gazette notice by the chief executive; or 8
(b) if no office is gazetted under paragraph (a)--the office of the 9
chief executive. 10
Maximum penalty--500 penalty units. 11
(3) A return under subsection (2) is a "royalty return". 12
(4) Information prescribed under subsection (2) is the "royalty 13
information". 14
595 Fee for late lodgment of royalty return 15
(1) This section applies if -- 16
(a) the producer does not lodge a royalty return for the production, 17
disposal or storage; or 18
(b) a purported royalty return lodged for the production, disposal or 19
storage does not contain all of the royalty information. 20
(2) The obligation under section 594 to lodge a royalty return continues 21
to apply until the section is complied with. 22
(3) When the royalty return is lodged, the return must be accompanied 23
by the late fee prescribed under a regulation. 24
(4) The late fee applies and is payable as well as any penalty imposed 25
under section 594. 26
596 Approval to use estimates for royalty return 27
(1) The Minister may decide to give a producer an approval for the 28
producer to give estimates of particular royalty information for 1 or more 29
royalty returns. 30
(2) The approval-- 31
s 597 379 s 598
Petroleum and Gas (Production and Safety) Bill 2004
(a) may be given subject to conditions; and 1
(b) must state the period for which the approval is given. 2
597 Petroleum producer's obligations if use of estimates approved 3
(1) This section applies if an approval is given under section 596, 4
whether or not it has been withdrawn. 5
(2) The producer must take any steps required by the Minister to verify 6
whether estimates given under the approval are reasonably accurate. 7
Maximum penalty--500 penalty units. 8
(3) The producer must, on or before the last business day of the third 9
month immediately following the end of the period for which the approval 10
was given (the "approval period"), lodge a reconciliation return at-- 11
(a) the office of the department for lodging royalty returns, as stated 12
in a gazette notice by the chief executive; or 13
(b) if no office is gazetted under paragraph (a)--the office of the 14
chief executive. 15
Maximum penalty--5 000 penalty units. 16
(4) The reconciliation return must state-- 17
(a) information required for royalty returns on the basis of the 18
approval period; and 19
(b) what adjustments have been made to the petroleum royalty 20
payable. 21
(5) The producer must, on or before the last business day of the third 22
month immediately following the end of the approval period, pay any 23
shortfall in the petroleum royalty payable because of the use of the 24
estimate.544 25
598 Obligation to disclose inaccurate information 26
(1) If the producer discovers that information stated in a royalty return or 27
in a reconciliation return lodged under section 597 is inaccurate, the 28
544 See also section 602 (Interest on unpaid petroleum royalty or additional petroleum
royalty).
s 599 380 s 599
Petroleum and Gas (Production and Safety) Bill 2004
producer must, as soon as practicable, disclose the inaccuracy to the 1
Minister. 2
(2) The inaccuracy may be disclosed in a royalty return. 3
(3) Subsection (2) does not limit the ways in which the inaccuracy may 4
be disclosed. 5
599 Annual royalty returns 6
(1) This section applies to the producer for so long as, at any time during 7
any royalty return period, there is petroleum-- 8
(a) that is the property of the producer; and 9
(b) for which petroleum royalty is, or could be, payable by the 10
producer. 11
(2) The producer must lodge an annual royalty return for each royalty 12
return period at-- 13
(a) the office of the department for lodging royalty returns, as stated 14
in a gazette notice by the chief executive; or 15
(b) if no office is gazetted under paragraph (a)--the office of the 16
chief executive. 17
Maximum penalty--5 000 penalty units. 18
(3) Each annual royalty return must-- 19
(a) state the royalty information for the royalty return period to 20
which the return relates; and 21
(b) be lodged within 3 months after the end of the royalty return 22
period to which the return relates. 23
(4) In this section-- 24
"royalty return period" means-- 25
(a) each 12 month period ending on the following day-- 26
(i) 30 June or 31 December, as decided by the Minister and 27
notified to the producer; 28
(ii) if no day has been notified under subparagraph (i), 29
whichever of those days is first to happen after the later of 30
the following-- 31
(A) the commencement of this section; 32
s 600 381 s 601
Petroleum and Gas (Production and Safety) Bill 2004
(B) the producer first produces petroleum for which 1
petroleum royalty is, or could be, payable by the 2
producer; and 3
(b) if, on the commencement of this section, the producer is not 4
producing petroleum--the period from the commencement to the 5
start of the first royalty return period under paragraph (a). 6
PART 3--PAYMENT OF PETROLEUM ROYALTY 7
600 Overpayments 8
(1) This section applies if the actual amount paid by a petroleum 9
producer for petroleum royalty is more than the petroleum royalty that was 10
payable by the producer. 11
(2) The Minister must refund the difference between the amount paid by 12
the producer and the amount that was payable by the producer. 13
(3) The refund may be made by crediting the difference against any 14
amount the Minister is reasonably satisfied is, or will become, payable by 15
the producer for petroleum royalty or unpaid petroleum royalty interest. 16
(4) No interest is payable on the difference refunded. 17
601 Underpayments 18
(1) This section applies, subject to sections 596 and 597,545 if an actual 19
amount paid by a petroleum producer for petroleum royalty is less than the 20
amount of the petroleum royalty that was payable by the producer. 21
(2) The difference between the amount paid and the amount payable by 22
the producer is taken to have been owing and unpaid as part of the 23
petroleum royalty from when the royalty was payable by the producer 24
under part 1. 25
(3) If the difference-- 26
545 Sections 596 (Approval to use estimates for royalty return) and 597 (Petroleum
producer's obligations if use of estimates approved)
s 602 382 s 603
Petroleum and Gas (Production and Safety) Bill 2004
(a) was brought about by the use of estimates in royalty returns, as 1
approved under section 596; and 2
(b) is more than 15% of the petroleum royalty that was payable by 3
the producer; 4
the producer must pay the State an additional petroleum royalty of 25% of 5
the difference. 6
(4) Subsection (2) does not apply if the Minister, by notice to the 7
producer, waives the requirement to pay under that subsection, in whole or 8
part. 9
(5) However, the Minister may waive the requirement only if the 10
Minister is satisfied the producer made a genuine mistake and that, in the 11
circumstances, the waiver is justified. 12
(6) The additional petroleum royalty is taken to have been payable from 13
the last day, under section 597(3), for lodgment by the producer of a 14
reconciliation return in relation to the difference. 15
602 Interest on unpaid petroleum royalty or additional petroleum 16
royalty 17
(1) This section applies if a person does not pay an amount for petroleum 18
royalty that is payable under part 1, or for additional petroleum royalty that 19
is payable under section 601. 20
(2) The Minister may, by notice, require the person to pay the State 21
interest on the amount at the rate prescribed under a regulation. 22
(3) Interest payable under subsection (2) is taken to form part of the 23
petroleum royalty. 24
603 Recovery of unpaid petroleum royalty and interest 25
If a petroleum producer does not pay-- 26
(a) petroleum royalty for petroleum produced by the producer that is 27
payable under part 1; or 28
(b) additional petroleum royalty that is payable under section 601; or 29
(c) unpaid petroleum royalty interest payable by the producer; 30
s 604 383 s 604
Petroleum and Gas (Production and Safety) Bill 2004
the State may recover from the producer as a debt the amount of the 1
petroleum royalty or interest.546 2
604 Certificate of unpaid petroleum royalty 3
(1) This section applies if the Minister is of the opinion, based on 4
information available to the Minister and any estimate by the Minister, that 5
an amount for petroleum royalty is payable and unpaid by a petroleum 6
producer. 7
(2) The Minister may give the producer a notice-- 8
(a) stating that the Minister is of the opinion that the amount is 9
payable and unpaid by the producer for petroleum royalty; and 10
(b) stating the facts and circumstances forming the basis for the 11
opinion; and 12
(c) inviting the producer to lodge, at the following office, 13
submissions, within a stated reasonable period, as to why the 14
producer should not pay the amount-- 15
(i) the office of the department for lodging the submissions, as 16
stated in a gazette notice by the chief executive; 17
(ii) if no office is gazetted under subparagraph (i)--the office of 18
the chief executive. 19
(3) The Minister must consider any submissions lodged within the stated 20
period by the producer. 21
(4) If, after complying with subsection (3), the Minister is satisfied an 22
amount for petroleum royalty is payable and unpaid by the producer, the 23
Minister may give the producer a certificate stating that the amount is 24
payable and unpaid. 25
(5) The certificate must be accompanied by, or include, an information 26
notice about the decision that the amount is payable and unpaid. 27
(6) In any proceeding under or in relation to this Act, the certificate, or a 28
copy of the certificate, is evidence that the amount is payable and unpaid by 29
the producer. 30
546 See also section 850 (Joint and several liability for conditions and for debts to State).
s 605 384 s 606
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--MONITORING PAYMENT OF PETROLEUM 1
ROYALTY 2
Division 1--Audits by approved auditors 3
605 Appointment and qualifications 4
(1) The chief executive may appoint a person, whether or not a public 5
service officer, as an approved auditor for this part. 6
(2) However, the chief executive may appoint a person as an approved 7
auditor only if satisfied the person is qualified for appointment because the 8
person has the necessary expertise or experience to carry out an audit under 9
this division. 10
(3) Also, a person who is not a public service officer can only be 11
appointed as an approved auditor to audit petroleum producers who are 12
named in the auditor's instrument of appointment. 13
(4) Subsection (3) does not prevent the person from being reappointed if 14
the period of the reappointment is for no more than 6 months. 15
606 Appointment conditions and limit on powers 16
(1) An approved auditor holds office on any conditions stated in-- 17
(a) the auditor's instrument of appointment; or 18
(b) a signed notice given to the auditor; or 19
(c) a regulation. 20
(2) Without limiting subsection (1), the instrument of appointment, a 21
signed notice given to the auditor or a regulation may-- 22
(a) limit the auditor's functions or powers under this Act; or 23
(b) require the auditor to give the chief executive stated information 24
or a report about the performance of the auditor's functions or the 25
exercise of the auditor's powers. 26
(3) In this section-- 27
"signed notice" means a notice signed by the chief executive. 28
s 607 385 s 609
Petroleum and Gas (Production and Safety) Bill 2004
607 Issue of identity card 1
(1) The chief executive must issue an identity card to each approved 2
auditor. 3
(2) The identity card must-- 4
(a) contain a recent photo of the auditor; and 5
(b) contain a copy of the auditor's signature; and 6
(c) identify the person as an approved auditor under this Act; and 7
(d) state an expiry date for the card. 8
(3) This section does not prevent the issue of a single identity card to a 9
person for this Act and other purposes. 10
608 Production or display of identity card 11
(1) In exercising a power or performing a function under this Act in 12
relation to a person, an approved auditor must produce the auditor's 13
identity card for the person's inspection if asked by the person. 14
(2) However, if it is not practicable to comply with subsection (1), the 15
auditor must produce the identity card for the person's inspection at the 16
first reasonable opportunity. 17
609 When approved auditor ceases to hold office 18
(1) An approved auditor ceases to hold office if any of the following 19
happens-- 20
(a) the term of office stated in a condition of office ends; 21
(b) under another condition of office, the auditor ceases to hold 22
office; 23
(c) the auditor's resignation takes effect. 24
(2) Subsection (1) does not limit the ways an approved auditor may 25
cease to hold office. 26
(3) In this section-- 27
"condition of office" means a condition on which the auditor holds office. 28
s 610 386 s 614
Petroleum and Gas (Production and Safety) Bill 2004
610 Revocation of approved auditor's appointment 1
The chief executive may revoke an approved auditor's appointment. 2
611 Resignation 3
An approved auditor may resign by a signed notice given to the chief 4
executive. 5
612 Return of identity card 6
A person who ceases to be an approved auditor must return the person's 7
identity card to the chief executive within 20 business days after ceasing to 8
be an approved auditor, unless the person has a reasonable excuse. 9
Maximum penalty--40 penalty units. 10
613 Approved auditor's power to audit 11
(1) An approved auditor may audit a petroleum producer to monitor 12
whether-- 13
(a) the producer has paid petroleum royalty as required under part 1; 14
and 15
(b) petroleum royalty will be payable by the producer. 16
(2) The decision to carry out the audit may be made on a random or other 17
basis not directly connected with the producer. 18
614 Application of ch 10, pt 1, divs 2-4 19
Chapter 10, part 1, divisions 2 to 4 apply for an approved auditor 20
carrying out, or proposing to carry out, functions under section 613 as if the 21
auditor were an authorised officer carrying out, or proposing to carry out, 22
functions of an authorised officer. 23
s 615 387 s 617
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Audits by auditor-general 1
615 Auditor-general's power to audit 2
(1) The auditor-general may, at the Minister's request, audit a petroleum 3
producer to monitor whether-- 4
(a) the producer has paid petroleum royalty as required under part 1; 5
or 6
(b) petroleum royalty will be payable by the producer. 7
(2) The request may be made on a random or other basis not directly 8
connected with the producer. 9
616 Powers in carrying out audit 10
(1) The auditor-general has, in carrying out an audit under section 615, 11
all the powers the auditor-general has under the Financial Administration 12
and Audit Act 1977 (the "FAA") as if-- 13
(a) the petroleum producer were a public sector entity under that 14
Act; and 15
(b) the auditor-general were carrying out an audit under that Act in 16
relation to the producer as a public sector entity; and 17
(c) a reference in section 85 of that Act to an audit of the 18
consolidated fund account were a reference to an audit under 19
section 615. 20
(2) The FAA, sections 88 to 92 and 94 apply for the applied exercise of 21
powers under subsection (1) as if a reference in the sections to the exercise 22
of a power included the exercise of a power under subsection (1). 23
(3) For the FAA, sections 92 and 94, as applied under subsection (2)-- 24
(a) a reference to the FAA includes a reference to this Act; and 25
(b) the reference in section 92(2)(d) to duties includes a reference to 26
the functions mentioned in section 615(1). 27
617 Report on audit 28
(1) The auditor-general must after completing an audit under 29
section 615, prepare a report about the audit and give the report to the 30
Minister. 31
s 617 388 s 617
Petroleum and Gas (Production and Safety) Bill 2004
(2) The report may state whether or not petroleum royalty is payable by 1
the relevant petroleum producer, and its amount. 2
(3) In any proceeding under or in relation to this Act to which the 3
producer is a party, the report is evidence of any matter stated in the report. 4
s 618 389 s 620
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 7--FUEL GAS QUALITY AND 1
CHARACTERISTICS FOR CONSUMERS 2
PART 1--PRELIMINARY 3
618 Application of ch 7 4
This chapter applies to the supply of fuel gas only if the gas supplied is 5
for use by consumers of fuel gas. 6
619 Who is a "consumer" of fuel gas 7
(1) A "consumer" of fuel gas is a person who-- 8
(a) consumes, or proposes to consume, fuel gas by way of heating, 9
lighting, motive power or in an industrial process; or 10
(b) uses, or proposes to use, fuel gas for refrigeration or another 11
process. 12
(2) Subsection (1)(b) applies even if the use does not result in the gas 13
being consumed. 14
PART 2--QUALITY 15
Division 1--Quality restrictions 16
620 Prescribed quality 17
(1) A regulation may prescribe a quality for fuel gas to be supplied to 18
consumers (the "prescribed quality"). 19
(2) The prescribed quality may be for the purity, composition or physical 20
parameters of the gas. 21
22
Examples of physical parameters--
23
specific gravity and heating value
s 621 390 s 622
Petroleum and Gas (Production and Safety) Bill 2004
621 Restrictions on supplying gas not of prescribed quality 1
(1) This section applies if a person (the "supplier") proposes to supply 2
fuel gas to someone else (the "recipient") if-- 3
(a) the gas is not of the prescribed quality; and 4
(b) a gas quality approval for the gas is not in force. 547
5
(2) The supplier must not supply the fuel gas to the recipient, unless-- 6
(a) the recipient has agreed in writing to the supply; and 7
(b) the agreement-- 8
(i) states that the gas is not of the prescribed quality; and 9
(ii) describes the quality of the gas; and 10
(c) the chief inspector has received the agreement, or a copy of it. 11
Maximum penalty--500 penalty units.548 12
(3) An agreement that complies with subsection (2)(a) to (c) is a "gas 13
quality agreement". 14
Division 2--Gas quality approvals 15
622 Chief inspector's power to approve quality 16
(1) The chief inspector may, on the chief inspector's own initiative or on 17
application, approve the quality of fuel gas (a "gas quality approval"). 18
(2) The application must be-- 19
(a) in the approved form; and 20
(b) lodged at-- 21
(i) the office of the department for lodging applications for gas 22
quality approvals, as stated in a gazette notice by the chief 23
inspector; or 24
(ii) if no office is gazetted under subparagraph (i)--the office 25
stated in the approved form; or 26
547 See section 622 (Chief inspector's power to approve quality).
548 See however section 437 (Limitation of transmission pipeline holder's liability).
s 623 391 s 625
Petroleum and Gas (Production and Safety) Bill 2004
(iii) otherwise--the office of the chief inspector; and 1
(c) accompanied by the fee prescribed under a regulation. 2
(3) A gas quality approval may be given for all or any of the following-- 3
(a) supply by a stated person; 4
(b) a stated period; 5
(c) supply to a stated consumer, or group of consumers, from a 6
common source. 7
623 Criteria for approval 8
The chief inspector may issue a gas quality approval only if satisfied-- 9
(a) the quality of the gas is acceptable for supply to the relevant 10
consumers; and 11
(b) either-- 12
(i) the approval is necessary to ensure sufficiency of gas supply 13
to the relevant consumers; or 14
(ii) that stopping the supply to allow gas of the prescribed 15
quality to be supplied is impractical or may cause a 16
dangerous situation; or 17
(iii) it is impractical to seek the written approval of the relevant 18
consumers to be supplied with gas of that quality. 19
624 Steps after making decision about approval 20
(1) If the chief inspector issues a gas quality approval for supply by a 21
person, the chief inspector must give the person notice of the approval. 22
(2) The gas quality approval takes effect when the notice is given. 23
(3) On refusal to issue a gas quality approval, the holder must be given 24
an information notice about the decision to refuse. 25
625 Power to cancel approval 26
(1) The chief inspector may decide to immediately cancel a gas quality 27
approval if the chief inspector reasonably believes there may be an 28
unacceptable risk to safety if the approval were to continue in force. 29
s 626 392 s 626
Petroleum and Gas (Production and Safety) Bill 2004
(2) A cancellation under subsection (1) takes effect when the gas quality 1
approval holder is given an information notice about the decision to cancel. 2
(3) The chief inspector may, by complying with subsections (4) and (5), 3
decide to cancel a gas quality approval for any other reason. 4
(4) If the chief inspector proposes to cancel a gas quality approval under 5
subsection (3), the chief inspector must give its holder a notice stating-- 6
(a) that the chief inspector proposes to cancel the approval; and 7
(b) the reasons for the proposed cancellation; and 8
(c) that the holder may lodge, within a stated reasonable period, 9
written submissions about the proposed cancellation at-- 10
(i) the office of the department for lodging the submissions, as 11
stated in a gazette notice by the chief inspector; or 12
(ii) if no office is gazetted under subparagraph (i)--the office of 13
the chief inspector. 14
(5) The chief inspector must, before making a decision under 15
subsection (3), consider any written submissions lodged by the holder 16
within the stated period. 17
(6) A decision to cancel under subsection (3) takes effect when the 18
holder is given an information notice about the decision or, if the notice 19
states a later day of effect, on that later day. 20
PART 3--CHARACTERISTICS 21
626 Fuel gas supplied through pipeline 22
(1) A person who supplies fuel gas must ensure the gas is reasonably free 23
of-- 24
(a) any liquids; or 25
(b) substances that are toxic to persons or corrosive to pipelines, gas 26
systems or gas containers. 27
Maximum penalty--500 penalty units. 28
s 627 393 s 628
Petroleum and Gas (Production and Safety) Bill 2004
(2) For subsection (1), fuel gas is taken to be reasonably free of liquids 1
or substances mentioned in subsection (1)(b) if they are no more than any 2
level declared under a safety requirement.549 3
(3) In making the declaration, regard must be had to current industry 4
practice. 5
(4) Subsection (1) applies even if the gas is of the prescribed quality or 6
of a quality approved under a gas quality approval or provided for under a 7
gas quality agreement. 8
627 Prescribed odour 9
A regulation may prescribe a distinctive odour for fuel gas 10
(the "prescribed odour") to be supplied for consumer use. 11
628 Odour requirement 12
(1) A person must not supply fuel gas to a consumer unless-- 13
(a) the gas has the prescribed odour; or 14
(b) the supply is to an industrial installation with appropriate gas 15
detectors and shut-down systems and a risk analysis carried out 16
by an appropriately qualified person shows the supply is safe. 17
Maximum penalty--500 penalty units. 18
(2) The fact that a person is supplying a consumer with fuel gas under 19
subsection (1)(b) does not limit an inspector's power to give the person a 20
dangerous situation direction that requires the gas to have the prescribed 21
odour. 22
(3) In this section-- 23
"appropriately qualified person" means a person who-- 24
(a) is independent of the person supplying the fuel gas; and 25
(b) the chief inspector considers-- 26
(i) is appropriately qualified; and 27
(ii) has access to information to carry out the risk analysis. 28
549 See section 669 (Making safety requirement).
s 629 394 s 630
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 8--PETROLEUM AND FUEL GAS 1
MEASUREMENT 2
PART 1--INTRODUCTION 3
Division 1--Application of chapter 8 4
629 Application of ch 8 5
This chapter applies for meters used to-- 6
(a) measure, at custody transfer points, petroleum or fuel gas for 7
supply or transport by pipeline; or 8
(b) work out the petroleum royalty; or 9
(c) comply with section 801.550 10
11
Note--
12
1. Under the Mineral Resources Act, section 318CU,551 parts 1 and 2 also apply for
13
the measurement and recording of incidental coal seam gas mined in the area of a
14
coal or oil shale mining lease.
15
2. The National Measurement Act 1960 (Cwlth) also imposes requirements that apply
16
for measurements schemes under this chapter.
630 Relationship with Trade Measurement Act 1990 17
A person is taken not to have committed an offence against the Trade 18
Measurement Act 1990 in relation to a meter or the measurement of 19
petroleum or fuel gas if, in doing the act or making the omission that would 20
have, other than for this section, constituted the offence, the person 21
complies with this chapter. 22
550 Section 801 (Petroleum producer's measurement obligations)
551 Mineral Resources Act, section 318CU (Obligation to measure and record coal seam
gas mined)
s 631 395 s 632
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Interpretation 1
631 What is a "meter" 2
(1) A "meter" is a device used to work out, by direct measurement, the 3
energy, mass or volume of petroleum or fuel gas transferred from one place 4
to another. 5
(2) A "meter" includes-- 6
(a) a measuring device and its ancillary equipment; and 7
8
Examples of a measuring device--
9
a positive displacement meter, turbine meter and orifice metering
10
Example of ancillary equipment--
11
a flow computer
(b) a measurement method. 12
13
Examples of measurement methods--
14
1. Calibrated weigh-bridge differences
15
2. Tank dip readings
16
3. For disposal of incidental coal seam gas in ventilation air from an
17
underground coal mine, estimation of flow rates and sampling of
18
methane content measurements
(3) A reference to a "meter" includes a part of the meter. 19
632 Who is the "controller" of a meter 20
(1) The "controller", of a meter, is the person who owns the meter. 21
(2) However, if the owner has arranged with someone else for the other 22
person to operate and maintain the meter for measurement purposes, the 23
other person is the "controller" of the meter while the arrangement is in 24
force. 25
s 633 396 s 636
Petroleum and Gas (Production and Safety) Bill 2004
633 What is the "measurement scheme" for a meter 1
The "measurement scheme", for a meter, is the measurement scheme 2
for the meter made under section 637, as revised from time to time under 3
section 639.552 4
634 "Measurement" includes estimation 5
A reference to the "measurement", of petroleum or fuel gas, includes 6
an estimation of the energy, mass or volume of the petroleum or fuel gas. 7
635 What is the "tolerance for error" for a meter 8
The "tolerance for error", for a meter, is its tolerance for error in 9
accuracy-- 10
(a) as prescribed under a regulation; or 11
(b) if the tolerance is not prescribed under a regulation, as provided 12
for under-- 13
(i) the measurement scheme for the meter; or 14
(ii) an Australian standard or similar standard that the 15
measurement scheme for the meter requires the meter to 16
comply with. 17
PART 2--MEASUREMENT SCHEMES 18
Division 1--Making and revision of measurement scheme 19
636 Obligations of controller of meter 20
The controller of a meter must-- 21
(a) make a measurement scheme for the meter that complies with 22
section 637; and 23
552 Sections 636 (Obligations of controller of meter) and 639 (When measurement
scheme must be revised)
s 637 397 s 637
Petroleum and Gas (Production and Safety) Bill 2004
(b) implement and maintain the scheme.553 1
Maximum penalty--300 penalty units. 2
637 Content requirements for measurement schemes 3
(1) A measurement scheme for a meter must-- 4
(a) identify each meter, or meter family or type, to which the scheme 5
applies; and 6
(b) if the scheme applies to a meter family or type--state 7
approximately how many meters to which the scheme applies are 8
in each family or type; and 9
(c) state an Australian standard or other standard acceptable to the 10
chief executive to which each meter to which the scheme applies 11
must comply; and 12
(d) if the standard does not provide for, or a regulation does not 13
prescribe, when any of the meters must be replaced or 14
tested--state a proposed time or interval for replacement or 15
testing; and 16
(e) if the standard does not state, or a regulation does not prescribe, a 17
tolerance for error for any of the meters--state what is the 18
tolerance for error for the meters or meters of their family or 19
type; and 20
(f) provide for regular reviews of the scheme; and 21
(g) state key performance indicators to be used to monitor 22
compliance with the scheme and this chapter; and 23
(h) include any competency requirement made under section 638; 24
and 25
(i) comply with any relevant requirements under the National 26
Measurement Act 1960 (Cwlth); 27
(j) state the means of compliance with other relevant matters 28
prescribed under a regulation. 29
(k) state other matters prescribed under a regulation.554 30
553 See also section 801 (Petroleum producer's measurement obligations).
554 See also section 801 (Petroleum producer's measurement obligations).
s 637 398 s 637
Petroleum and Gas (Production and Safety) Bill 2004
(2) The scheme must also address the following to the extent they are 1
appropriate for the meters to which the scheme applies-- 2
(a) installation and commissioning of meters; 3
(b) meter testing methods and frequency; 4
(c) maintenance processes; 5
(d) correction factor calculation; 6
(e) calibration and traceability of meter test equipment; 7
(f) meter security, including, for example, protection from damage 8
during transport, installation and use and preventing 9
unauthorised alteration of meter readings; 10
(g) processes for estimated meter readings, reasons for estimations 11
and procedures for reconciling actual and estimated readings; 12
(h) procedures on meter failure, incorrect operation or meter bypass; 13
(i) levels of competency for persons employed or engaged to carry 14
out measurement activities under the scheme or other activities 15
relating to the meters; 16
17
Examples of other activities--
18
removing and replacing the meters
(j) training programs to maintain the skill levels of persons 19
mentioned in paragraph (i); 20
(k) records to be kept, including, for example, records of anomalies, 21
complaints and action taken to rectify or account for them, and 22
the minimum period they will be kept. 23
(3) In this section-- 24
"meter family" means a group of meters if-- 25
(a) all the meters have been made to the same specifications by the 26
same manufacturer; and 27
(b) there are no significant differences in components or materials 28
between meters. 29
s 638 399 s 639
Petroleum and Gas (Production and Safety) Bill 2004
638 Power to fix competency required under measurement scheme 1
(1) This section applies if the chief executive believes an activity under a 2
measurement scheme for a meter should be performed only by a person 3
with a particular competency. 4
(2) The chief executive may, by notice to the controller of the relevant 5
meter, require the task be performed only by a person with the competency. 6
(3) On the giving of the notice, the controller must ensure-- 7
(a) the task is performed only by a person with the competency; and 8
(b) the scheme is amended to incorporate the requirement. 9
639 When measurement scheme must be revised 10
(1) The controller of a meter must appropriately revise the measurement 11
scheme for the meter in any of the following circumstances-- 12
(a) the controller has installed, or proposes to install, a meter to 13
which the scheme does not apply or that does not comply with 14
the scheme; 15
(b) the making or amendment of an Australian standard or other 16
standard that makes it appropriate to revise the scheme; 17
(c) the happening of an event relevant to the meter of which the 18
controller is aware, or ought reasonably to have been aware; 19
20
Examples of an event--
21
a development in technical knowledge or hazard assessment
(d) proposed modifications to the meter or activities under the 22
scheme that make it appropriate to revise the scheme; 23
(e) it is proposed to change competencies required for persons 24
carrying out activities under the scheme; 25
(f) the controller becomes aware of a significant anomaly in the 26
scheme; 27
(g) there is a likelihood of inaccurate measurements under the 28
scheme. 29
Maximum penalty--500 penalty units. 30
(2) In this section-- 31
"revise" means amend or remake. 32
s 640 400 s 642
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Compliance with measurement scheme 1
640 Meter installation or use must comply with scheme 2
A person must not install or use a meter unless-- 3
(a) a measurement scheme that applies to the meter has been made; 4
and 5
(b) the scheme complies with section 637; and 6
(c) the installation or use complies with the scheme. 7
Maximum penalty--200 penalty units.555 8
641 Measurement must comply with scheme 9
A person must not measure petroleum or fuel gas through a meter 10
unless-- 11
(a) the measurement is done in a way that complies with the 12
measurement scheme that applies to the meter; and 13
(b) the scheme complies with section 637. 14
Maximum penalty--500 penalty units. 15
642 Controller responsible for compliance with measurement scheme 16
(1) The controller of a meter must ensure everyone carrying out activities 17
to which the measurement scheme for the meter applies complies with the 18
scheme. 19
Maximum penalty--500 penalty units. 20
(2) Evidence that another person has been convicted of an offence 21
against section 640 or 641 is evidence that the controller committed the 22
offence of failing to ensure the other person complies with the scheme. 23
555 See also section 658 (Authorisation required to install or use pre-payment meters).
s 643 401 s 644
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Regulatory provisions 1
643 Chief executive's powers if no measurement scheme 2
(1) If the chief executive is satisfied no measurement scheme applies to a 3
meter, the chief executive may, by notice to the controller of the meter 4
prohibit, or impose conditions on, its use or operation. 5
(2) The notice must include, or be accompanied by, an information 6
notice about the decision to make the prohibition or impose the conditions. 7
(3) The controller must comply with the notice. 8
Maximum penalty for subsection (3)--500 penalty units. 9
644 Notice by chief executive of unsatisfactory measurement scheme 10
(1) This section applies if the chief executive reasonably believes a 11
measurement scheme for a meter does not comply with section 637 or must 12
be revised under section 639. 13
(2) The chief executive must give the controller notice-- 14
(a) stating the belief, and the reasons for it; and 15
(b) requiring the controller within a stated reasonable period to-- 16
(i) amend the scheme so that it complies with section 637, or, if 17
appropriate, revise the scheme under section 639, and lodge 18
a notice that the scheme has been so amended or revised; or 19
(ii) lodge at the following office submissions as to why the 20
scheme complies with the section 637, or that a revision is 21
not required under section 639-- 22
(A) the office of the department for lodging the referral, as 23
stated in a gazette notice by the chief executive; 24
(B) if no office is gazetted under subsubparagraph (A) 25
--the office of the chief executive. 26
(3) The notice may state how the chief executive considers the scheme 27
should be amended. 28
s 645 402 s 646
Petroleum and Gas (Production and Safety) Bill 2004
645 Considering submissions 1
(1) This section applies if, within the period stated in a notice given 2
under section 644(2) to a controller, the controller lodges a submission 3
under that section. 4
(2) The chief executive must consider the submission. 5
(3) If the chief executive decides the scheme does comply or does not 6
need to be revised, the chief executive must give the controller notice of the 7
decision. 8
646 Revision notice 9
(1) This section applies if, after complying with section 645, the chief 10
executive still believes the relevant measurement scheme does not comply 11
with section 637 or must be revised under section 639. 12
(2) The chief executive may give the controller notice (the "revision 13
notice") requiring the controller to amend or remake the measurement 14
scheme so that-- 15
(a) it complies with section 637; and 16
(b) if the chief executive believes it must be revised under 17
section 639--the revision is made. 18
(3) The revision notice must-- 19
(a) state how the chief executive believes the measurement scheme 20
does not comply with section 637 or must be revised under 21
section 639; and 22
(b) state a period within which the controller must comply with the 23
revision notice; and 24
(c) be accompanied by, or include, an information notice about the 25
decisions to give the revision notice and to fix the stated period. 26
(4) The controller must comply with the revision notice. 27
Maximum penalty for subsection (4)--500 penalty units. 28
s 647 403 s 650
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Significant meter anomalies 1
647 Application of div 4 2
This division applies if the controller of a meter becomes aware of an 3
anomaly relating to the meter that causes, or may cause, the meter to be 4
less accurate than its tolerance for error. 5
648 Restrictions on use of meter 6
(1) The controller must, as soon as practicable, stop any use of the meter. 7
Maximum penalty--500 penalty units. 8
(2) The controller must not use the meter or resume the use of the meter 9
until the anomaly has been corrected. 10
Maximum penalty--500 penalty units. 11
649 Obligation to report if required 12
(1) If the chief executive has required the controller to lodge a notice of 13
the anomaly, or that type of anomaly, the controller must give the notice as 14
soon as practicable. 15
Maximum penalty--300 penalty units. 16
(2) The notice must be lodged at -- 17
(a) the office of the department for lodging the notice, as stated in a 18
gazette notice by the chief executive; or 19
(b) if no office is gazetted under paragraph (a)--the office of the 20
chief executive. 21
Division 5--Other reporting requirements 22
650 Annual measurement report 23
(1) The controller of a meter must, on or before 1 September each year, 24
lodge a measurement report about its measurement scheme for the 25
preceding financial year that complies with section 651. 26
Maximum penalty--100 penalty units. 27
s 651 404 s 651
Petroleum and Gas (Production and Safety) Bill 2004
(2) The measurement report must be lodged at-- 1
(a) the office of the department for lodging measurement reports, as 2
stated in a gazette notice by the chief executive; or 3
(b) if no office is gazetted under paragraph (a)--the office of the 4
chief executive. 5
(3) It is not a defence to a proceeding for an offence against 6
subsection (1) that the lodging of the report or information it contains 7
might tend to incriminate the controller. 8
(4) However, evidence of, or evidence directly or indirectly derived 9
from, the report or information it contains that might tend to incriminate 10
the controller is not admissible in evidence against the controller in a civil 11
or criminal proceeding, other than a proceeding for an offence for which 12
the falsity or misleading nature of the answer is relevant. 13
651 Content requirements for annual measurement reports 14
A measurement report under section 650 must state all of the following 15
information for the measurement scheme the subject of the report for the 16
financial year to which the report relates-- 17
(a) the controller's name and contact details; 18
(b) the nature and extent of the metering operations; 19
(c) whether or not the operations complied with the scheme and this 20
Act; 21
(d) an assessment against the key performance indicators for the 22
scheme, as required under section 637(1)(g);556 23
(e) if the operations have not complied with the scheme-- 24
(i) details of each noncompliance; and 25
(ii) details of any remediation of the noncompliance; and 26
(iii) if the noncompliance has not been remedied in whole or 27
part--how it is proposed to remedy the noncompliance. 28
556 Section 637 (Content requirements for measurement schemes)
s 652 405 s 653
Petroleum and Gas (Production and Safety) Bill 2004
652 Power to require information about persons acting under 1
measurement scheme 2
(1) The chief executive may, by a notice given to a controller of a meter, 3
require the controller to lodge, within a stated period, notice of-- 4
(a) the names of, and the competencies held by-- 5
(i) each person who carries out activities for which 6
competencies are required under the measurement scheme 7
for the meter; or 8
(ii) a stated type of persons who carry out the activities; or 9
(b) the competencies held by a stated person who carries out the 10
activities. 11
(2) The stated period must not end before 10 business days after the 12
notice is given. 13
(3) The notice must be lodged at-- 14
(a) the office of the department for lodging the notice, as stated in a 15
gazette notice by the chief executive; or 16
(b) if no office is gazetted under paragraph (a)--the office of the 17
chief executive. 18
(4) The controller must comply with the requirement. 19
Maximum penalty for subsection (4)--100 penalty units. 20
PART 3--COMPETENCY ASSESSMENTS 21
653 Chief executive's power to require competency assessment 22
(1) The chief executive may, by notice, (a "competency assessment 23
notice") require the controller of a meter to-- 24
(a) assess the competency (a "competency assessment") of a 25
person who carries out-- 26
(i) measurement activities under the measurement scheme for 27
the meter; or 28
(ii) other activities relating to the meter; and 29
s 654 406 s 655
Petroleum and Gas (Production and Safety) Bill 2004
1
Examples of other activities--
2
removing and replacing meters
(b) give the person a report about the outcome of the assessment 3
within a stated reasonable period after the assessment takes 4
place; and 5
(c) lodge a copy of the report at-- 6
(i) the office of the department for lodging the report, as stated 7
in a gazette notice by the chief executive; or 8
(ii) if no office is gazetted under subparagraph (i)--the office of 9
the chief executive. 10
(2) The competency assessment notice must state-- 11
(a) a period (the "assessment period") during which the assessment 12
must take place; and 13
(b) reasons for the decision to carry out the assessment. 14
(3) The assessment period must be at least 20 business days after the 15
competency assessment notice is given. 16
(4) The competency assessment notice may also require the assessment 17
to be carried out for the controller by a stated person. 18
(5) The controller must comply with the competency assessment notice. 19
Maximum penalty for subsection (5)--300 penalty units. 20
654 Costs of competency assessment 21
A controller to whom a competency assessment notice has been given 22
must bear the costs of the assessment. 23
655 Requirements following competency assessment 24
(1) This section applies if the chief executive considers a report lodged 25
under section 653 about a competency assessment shows that the person 26
assessed is not competent to carry out an activity relating to the relevant 27
meter. 28
(2) The chief executive may give the person assessed and the relevant 29
controller notice-- 30
(a) requiring them to-- 31
s 656 407 s 657
Petroleum and Gas (Production and Safety) Bill 2004
(i) take stated remedial action to ensure the person assessed 1
becomes competent to carry out the activity; and 2
(ii) give the chief executive notice within a stated reasonable 3
period as to whether or not the action has been taken; or 4
(b) requiring the person assessed not to carry out stated activities for 5
a stated period or until the happening of a stated event; or 6
7
Example of a stated event--
8
If the notice requires the taking of remedial action, the chief executive's
9
receipt of a notice under paragraph (a)(ii) stating that the action has been
10
taken.
(c) requiring that the person assessed may carry out stated activities 11
only on stated conditions. 12
(3) The person assessed and the relevant controller must comply with the 13
notice. 14
Maximum penalty--300 penalty units. 15
(4) The giving of a notice under this section does not prevent a further 16
competency assessment notice being given for the person assessed. 17
PART 4--GENERAL PROVISIONS ABOUT METERS 18
656 Controller's obligation to test if inaccuracy suspected 19
If a controller of a meter suspects it may be registering inaccurately, the 20
controller must have it tested as soon as practicable. 21
Maximum penalty--100 penalty units. 22
657 Unlawfully interfering with meters or devices prohibited 23
A person must not unlawfully interfere with-- 24
(a) a meter; or 25
(b) the operation of a meter; or 26
(c) a security device, seal or stamp attached to a meter. 27
Maximum penalty--500 penalty units. 28
s 658 408 s 660
Petroleum and Gas (Production and Safety) Bill 2004
658 Authorisation required to install or use pre-payment meters 1
(1) A person must not install or use a pre-payment meter unless-- 2
(a) the chief executive has approved the installation or use; and 3
(b) any conditions of the approval have been complied with. 4
Maximum penalty--300 penalty units. 5
(2) The approval may be given for the installation and use of a stated 6
type of meter at a stated place or stated activity. 7
PART 5--METER ACCURACY DISPUTES 8
Division 1--Preliminary 9
659 Application of pt 5 10
(1) This part applies to disputes between an affected party for a meter 11
and a service provider for the party about whether the meter is accurate, 12
within its tolerance for error. 13
(2) However, this part does not apply to a dispute if a contract that binds 14
the affected party and the service provider provides for resolution of the 15
dispute. 16
660 Who is an "affected party" for a meter 17
(1) A person is an "affected party" for a meter if the person is, or may 18
be, affected by-- 19
(a) the meter possibly registering outside its tolerance for error; or 20
(b) inaccurate data obtained from the meter. 21
(2) Also, the chief executive is an "affected party" for a meter used to 22
work out the petroleum royalty, including, for example, a meter mentioned 23
in section 629(b).557 24
557 Section 629 (Application of ch 8)
s 661 409 s 662
Petroleum and Gas (Production and Safety) Bill 2004
661 Who is the "service provider" for an affected party 1
The "service provider", for an affected party, is-- 2
(a) a person who provides a service relating to the relevant meter; or 3
(b) the petroleum tenure holder who must pay petroleum royalty for 4
petroleum measured by the relevant meter. 5
Division 2--Test by service provider 6
662 Service provider test 7
(1) An affected party for a meter may give the party's service provider 8
notice requiring a test to work out whether the meter is registering within 9
its tolerance for error (a "service provider test"). 10
(2) The notice must be accompanied by any reasonable fee required by 11
the service provider. 12
(3) The service provider must, as soon as practicable-- 13
(a) cause an appropriately qualified person to carry out the test; and 14
(b) obtain a meter test certificate for the test; and 15
(c) give a copy of the certificate to-- 16
(i) the affected party; and 17
(ii) if the service provider is not the controller of the meter--the 18
controller. 19
Maximum penalty--100 penalty units. 20
(4) If the service provider reasonably considers the meter can not 21
conveniently or safely be tested on its site, the provider must immediately 22
advise the affected party. 23
(5) The advice must include how long the meter will be away from the 24
site and any additional charges likely to be incurred. 25
(6) The affected party may, at any time, withdraw the notice. 26
(7) If the withdrawal is made before the test is completed, the service 27
provider must refund the fee for the test, less any cost already incurred in 28
carrying out the test. 29
s 663 410 s 665
Petroleum and Gas (Production and Safety) Bill 2004
663 Content requirements for meter test certificate 1
A meter test certificate under this part must be a certificate by the person 2
who carried out the test stating the following-- 3
(a) full details of the test; 4
(b) the tolerance for error for the relevant meter; 5
(c) whether the meter was found to be registering within or outside 6
its tolerance for error; 7
(d) if the meter was found to be registering outside its tolerance for 8
error-- 9
(i) the percentage of error found; and 10
(ii) whether the error was in favour of the affected party or the 11
service provider; and 12
(iii) any known cause of the error. 13
664 Refund if test shows inaccuracy in service provider's favour 14
If a service provider test shows the meter tested is registering outside its 15
tolerance for error and in the provider's favour, the provider must-- 16
(a) pay for the cost of the test; and 17
(b) refund the affected party any amount the party paid the provider 18
for the test. 19
Maximum penalty--100 penalty units. 20
665 Restriction on tester adjusting meter 21
If a person who carries out a service provider test of a meter finds it is 22
not registering or registering outside its tolerance for error, the person must 23
not adjust the meter unless-- 24
(a) the person has told the affected party that-- 25
(i) the meter is not registering or is registering outside its 26
tolerance for error, and, if it is registering outside its 27
tolerance for error, the percentage of error found; and 28
(ii) the person wishes to make the adjustment; and 29
(iii) if the adjustment is made, a validation test of the meter will 30
not be able to be carried out; and 31
s 666 411 s 666
Petroleum and Gas (Production and Safety) Bill 2004
(b) the affected party has given the person written consent to make 1
the adjustment. 2
Maximum penalty--200 penalty units. 3
Division 3--Validation of service provider test 4
666 Validation test 5
(1) This section applies if a service provider test has been carried out for 6
an affected party. 7
(2) The party may, by notice to the service provider, require the provider 8
to arrange for a test by any of the following to work out whether the 9
relevant meter is registering within its tolerance for error (a "validation 10
test")-- 11
(a) an appropriately qualified person appointed by the chief 12
executive; 13
(b) an accredited National Association of Testing Authorities 14
(NATA) testing facility or an equivalent international facility; 15
(c) an international testing facility approved by the chief executive. 16
(3) The notice must be accompanied by any reasonable fee required by 17
the appointed person or testing facility for the test. 18
(4) As soon as practicable after receiving the notice, the service provider 19
must-- 20
(a) lodge a copy at-- 21
(i) the office of the department for lodging the notice, as stated 22
in a gazette notice by the chief executive; or 23
(ii) if no office is gazetted under subparagraph (i) --the office 24
of the chief executive; and 25
(b) if the service provider is not the controller of the meter--give the 26
controller a copy; and 27
(c) arrange for the appointed person or testing facility to carry out 28
the test. 29
Maximum penalty--50 penalty units. 30
s 667 412 s 668
Petroleum and Gas (Production and Safety) Bill 2004
(5) The appointed person or testing facility must, as soon as is 1
reasonably practicable-- 2
(a) carry out the test; and 3
(b) issue a meter test certificate for the test that complies with 4
section 663; and 5
(c) give the service provider the certificate. 6
(6) The service provider must, as soon as practicable after receiving the 7
certificate-- 8
(a) give a copy of it to the affected party and, if the service provider 9
is not the controller of the meter, the controller; and 10
(b) lodge a copy of it at-- 11
(i) the office of the department for lodging the copy, as stated 12
in a gazette notice by the chief executive; or 13
(ii) if no office is gazetted under subparagraph (i)--the office of 14
the chief executive. 15
Maximum penalty for subsection (6)--50 penalty units. 16
667 Refund if test shows inaccuracy in service provider's favour 17
If a validation test of a meter shows it is registering outside its tolerance 18
for error in the service provider's favour, the provider must-- 19
(a) pay for the costs of the service provider and validation tests; and 20
(b) refund the affected party any amount the party paid for the 21
relevant service provider test and the validation test. 22
Maximum penalty--50 penalty units. 23
668 Service provider's obligations if test shows inaccuracy 24
(1) This section applies if-- 25
(a) a validation test of a meter shows it is not registering or is 26
registering outside its tolerance for error; and 27
(b) the relevant service provider has, under section 666(5)(c), been 28
given a meter test certificate for the test. 29
(2) The service provider must, unless it is uneconomic or impractical to 30
do so, adjust the meter so it registers within its tolerance for error. 31
s 668 413 s 668
Petroleum and Gas (Production and Safety) Bill 2004
Maximum penalty--200 penalty units. 1
(3) If it is uneconomic or impractical to make the adjustment, the service 2
provider must-- 3
(a) ensure the meter is properly disconnected; and 4
(b) attach firmly to the meter a label clearly bearing the 5
words--`Inaccurate: not to be used'. 6
Maximum penalty--200 penalty units. 7
s 669 414 s 670
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 9--SAFETY 1
PART 1--SAFETY REQUIREMENTS 2
669 Making safety requirement 3
A regulation may make requirements ("safety requirements")-- 4
(a) for petroleum or fuel gas safety, including, for example, how to 5
achieve an acceptable level of risk under section 700; or 6
(b) about the carrying out of petroleum exploration or production to 7
ensure it does not adversely affect the safety of current or future 8
coal mining under the Mineral Resources Act. 9
PART 2--SAFETY MANAGEMENT PLANS 10
Division 1--Preliminary 11
670 What is an "operating plant" 12
(1) This section applies subject to section 671. 13
(2) An "operating plant" is any of the following-- 14
(a) a facility used to explore for, produce or process petroleum; 15
(b) a petroleum facility; 16
(c) a pipeline; 17
(d) an LPG storage facility. 18
(3) However, if an LPG storage facility has, under the Dangerous Goods 19
Safety Management Act 2001, been classified as a major hazard facility, it 20
is an operating plant only to the extent to which that Act does not apply to 21
the facility. 22
(4) Subsection (2) applies for a facility or pipeline even if it is-- 23
(a) an on-site activity as defined under the Coal Mining Safety and 24
Health Act; or 25
s 671 415 s 671
Petroleum and Gas (Production and Safety) Bill 2004
(b) an operation as defined under the Mining and Quarrying Safety 1
and Health Act 1999. 2
(5) An "operating plant" is also a place, or a part of a place, at which a 3
following activity is carried out, but only to the extent of the carrying out of 4
the activity-- 5
(a) delivery of gas cylinders as prescribed under a regulation; 6
(b) tanker delivery of bulk LPG; 7
(c) cylinder storage at premises prescribed under a regulation; 8
(d) an authorised activity under a petroleum authority if the activity 9
is a geophysical or other survey for data acquisition; 10
(e) another activity prescribed under a regulation and associated 11
with the delivery, storage, transport, treatment or use of 12
petroleum or fuel gas. 13
(6) A reference to an operating plant includes a reference to each stage of 14
the plant that has commenced. 15
671 Limitation for facility or pipeline included in coal mining 16
operation 17
(1) This section applies for a facility or pipeline that is, or is part of, a 18
coal mining operation or an on-site activity under the Coal Mining Safety 19
and Health Act. 20
(2) The facility or pipeline is an operating plant only if-- 21
(a) it is used to explore for, extract, produce, process, release or 22
transport coal seam gas (the "activity"); and 23
(b) either-- 24
(i) the activity is carried out under a mineral hydrocarbon 25
mining lease as defined under the Mineral Resources Act, 26
part 19, division 6;558 or 27
(ii) the person who holds the mining lease, the area of which 28
includes the area on which the activity is carried out, also 29
holds a petroleum lease the area of which includes the area. 30
558 Mineral Resources Act, part 19, division 6 (Transitional provisions for Petroleum
and Gas (Production and Safety) Act 2004)
s 672 416 s 674
Petroleum and Gas (Production and Safety) Bill 2004
(3) An operating plant mentioned in subsection (2) is a "coal 1
mining-CSG operating plant". 2
672 What is a "stage" of an operating plant 3
A "stage", of an operating plant, means any of the following for the 4
plant-- 5
(a) commissioning; 6
(b) operation; 7
(c) maintenance or modification; 8
(d) decommissioning. 9
673 Who is the "operator" of an operating plant 10
(1) This section provides for who is the "operator" of an operating 11
plant. 12
(2) For a coal mining-CSG operating plant, the operator is the relevant 13
site senior executive under the Coal Mining Safety and Health Act. 14
(3) For an operating plant that, under section 670(5),559 is a place, or a 15
part of a place, at which an activity is being carried out, the operator is the 16
person in overall charge of the activity. 17
(4) Otherwise, the operator is the person in charge of the plant while it is 18
in operation. 19
Division 2--Operator's obligations560 20
674 Requirement to have safety management plan 21
(1) The operator of an operating plant must-- 22
(a) for each stage of the plant, make a safety management plan that 23
complies with section 675; and 24
(b) implement and maintain the plan. 25
559 Section 670 (What is an "operating plant")
560 See also section 694 (Operator is default site safety manager).
s 675 417 s 675
Petroleum and Gas (Production and Safety) Bill 2004
Maximum penalty--1 500 penalty units. 1
(2) The operator of an operating plant must not begin a stage of the plant 2
unless-- 3
(a) the operator has made a safety management plan that applies to 4
the stage; and 5
(b) the plan complies with section 675. 6
Maximum penalty--1 000 penalty units. 7
(3) A safety management plan may apply to more than 1 operating plant. 8
(4) However, the plan must still comply with section 675 in relation to 9
each operating plant to which the plan applies.561 10
675 Content requirements for safety management plans 11
(1) A safety management plan for an operating plant must include details 12
of each of the following to the extent they are appropriate for the plant-- 13
(a) organisational safety policies; 14
(b) organisational structure and safety responsibilities; 15
(c) each site at the plant for which a site safety manager is required; 16
(d) a formal safety assessment consisting of the systematic 17
assessment of risk and a description of the technical and other 18
measures undertaken, or to be undertaken, to control the 19
identified risk; 20
(e) a skills assessment identifying the minimum skills, knowledge 21
and experience requirements for each person to carry out specific 22
work; 23
(f) a training and supervision program containing the mechanism for 24
imparting and assessing new skills, monitoring performance and 25
ensuring ongoing retention of skill levels; 26
(g) safety standards and standard operating procedures applied, or to 27
be applied, in each stage of the plant; 28
561 For coal mining-CSG operating plant, see division 4 (Special provisions for safety
management plans for coal mining-CSG operating plant).
s 675 418 s 675
Petroleum and Gas (Production and Safety) Bill 2004
(h) control systems including, for example, alarm systems, 1
temperature and pressure control systems, and emergency 2
shutdown systems; 3
(i) machinery and equipment relating to, or that may affect, the 4
safety of the plant; 5
(j) emergency equipment, preparedness and procedures; 6
(k) communication systems including, for example, emergency 7
communication systems; 8
(l) the mechanisms for implementing, monitoring and reviewing 9
safety policies; 10
(m) key performance indicators to be used to monitor compliance 11
with the plan and this Act; 12
(n) mechanisms for the investigation, recording and review of 13
incidents at the plant; 14
(o) record management including, for example, all relevant 15
approvals, certificates of compliance and other documents 16
required under this Act; 17
(p) to the extent that, because of the Workplace Health and Safety 18
Act 1995, section 3(1),562 that Act does not apply to a place or 19
installation at the plant, details, including codes and standards 20
adopted, addressing all relevant requirements under that Act that 21
would, other than for that section, apply; 22
(q) if the operating plant is, under the NOHSC standard, a major 23
hazard facility563--each matter not mentioned in paragraphs (a) 24
to (o) that is provided for under chapters 6 to 10 of that standard; 25
(r) another matter prescribed under a regulation. 26
(2) However, details, or full details, of a matter mentioned in 27
subsection (1) need not be included in the plan if-- 28
(a) because of the nature, size or type of the operating plant, it is 29
inappropriate to include the details; and 30
(b) the plan-- 31
562 Workplace Health and Safety Act 1995, section 3 (Application of Act)
563 For what is a major hazard facility under the NOHSC standard, see chapter 4,
definition "major hazard facility" and chapter 5 (Identification and classification of a
major hazard facility), section 5.6.
s 676 419 s 676
Petroleum and Gas (Production and Safety) Bill 2004
(i) complies with each relevant safety requirement or, if there is 1
no relevant safety requirement for the matter, other accepted 2
industry practices for the matter; and 3
(ii) states why it is inappropriate to include the details. 4
(3) A formal safety assessment under subsection (1)(d), must, as far as 5
practicable, state ways to control risks associated with the operating plant 6
to an acceptable level by-- 7
(a) eliminating or minimising hazards at the plant; and 8
(b) implementing measures to minimise the likelihood, and limit the 9
consequences, of significant incidents at the plant. 10
(4) In this section-- 11
"NOHSC standard" means the `National Standard for the Control of 12
Major Hazard Facilities [NOHSC:1014 (1996)]' made under the 13
National Occupational Health and Safety Commission Act 1985 14
(Cwlth), section 38.564 15
676 Publication of and access to safety management plan 16
(1) The operator of an operating plant must-- 17
(a) whenever the plant is operating, keep a copy of the safety 18
management plan for the plant or the part of the plan relevant to 19
the plant, open for inspection-- 20
(i) at the plant; or 21
(ii) if because of the nature, size or type of the plant it is 22
impracticable to keep it at the plant--at another place where 23
it is reasonable to have it open for inspection; and 24
(b) display, and keep displayed, in a conspicuous place at the plant 25
where it can be easily read by anyone to whom the plan, or part 26
of the plan, may apply, a notice stating where the copy of the 27
plan is open for inspection; and 28
564 National Occupational Health and Safety Commission Act 1985 (Cwlth), section 38
(National standards and codes of practice)
A copy of the standard may be inspected, free of charge, during office hours on
business days at the department's office at 41 George Street, Brisbane.
s 677 420 s 678
Petroleum and Gas (Production and Safety) Bill 2004
(c) ensure each person who has an obligation under the plan is told 1
they have an obligation under the plan within a reasonable period 2
before the plan requires them to comply with the obligation. 3
Maximum penalty--100 penalty units. 4
(2) In this section-- 5
"open for inspection" means open for inspection by anyone to whom the 6
plan, or part of the plan, may apply.565 7
677 Operator responsible for compliance with safety management 8
plan 9
(1) The operator of an operating plant must ensure everyone who has an 10
obligation under the safety management plan for the plant complies with 11
their obligations under the plan. 12
Maximum penalty--500 penalty units. 13
(2) Evidence that another person has been convicted of an offence 14
against section 702 is evidence that the operator committed the offence of 15
failing to ensure the other person complies with their obligations under the 16
plan. 17
678 When safety management plan must be revised 18
(1) The operator of an operating plant must revise the safety 19
management plan for the plant if any of the following make the revision 20
appropriate-- 21
(a) the making or amendment of a safety code, safety requirement or 22
a standard; 23
(b) the happening of an event relevant to the plant of which the 24
operator is aware, or ought reasonably to have been aware; or 25
26
Examples of an event--
27
a development in technical knowledge or hazard assessment
565 See also section 836 (Safety management plans).
For coal mining-CSG operating plant see division 4 (Special provisions for safety
management plans for coal mining-CSG operating plant).
s 679 421 s 679
Petroleum and Gas (Production and Safety) Bill 2004
(c) changes or proposed changes to the plant that could result in an 1
increase in the overall risk levels, or a specific risk level, for the 2
plant. 3
Maximum penalty--1 500 penalty units. 4
(2) In this section-- 5
"revise means amend or remake.566 6
Division 3--Validation of safety management plans 7
679 Notice by chief inspector 8
(1) This section applies if the chief inspector reasonably believes a safety 9
management plan for an operating plant does not comply with section 675 10
or must be revised under section 678. 11
(2) The chief inspector must give the operator of the plant notice-- 12
(a) stating the belief, and the reasons for it; and 13
(b) requiring the operator within a stated reasonable period to-- 14
(i) amend the plan so that it complies with section 675, or, if 15
appropriate, revise the plan under section 678, and give the 16
chief inspector notice that the plan has been so amended or 17
revised; or 18
(ii) lodge submissions as to why the plan complies with the 19
section at-- 20
(A) the office of the department for lodging the 21
submissions, as stated in a gazette notice by the chief 22
inspector; 23
(B) if no office is gazetted under subsubparagraph (A)-- 24
the office of the chief inspector. 25
(3) The notice may state how the chief inspector considers the plan 26
should be amended. 27
566 For coal mining-CSG operating plant see division 4 (Special provisions for safety
management plans for coal mining-CSG operating plant).
s 680 422 s 682
Petroleum and Gas (Production and Safety) Bill 2004
680 Considering submissions 1
(1) This section applies if, within the period stated in a notice given, 2
under section 679(2), to an operator, the operator lodges a submission 3
under that section. 4
(2) The chief inspector must consider the submission. 5
(3) If the chief inspector decides the plan does comply or does not need 6
to be revised, the chief inspector must give the operator notice of the 7
decision. 8
681 Revision notice 9
(1) This section applies if, after complying with section 680, the chief 10
inspector still believes the relevant safety management plan does not 11
comply with section 675 or must be revised under section 678. 12
(2) The chief inspector may give the operator notice (the "revision 13
notice") requiring the operator to amend or remake the safety management 14
plan so that-- 15
(a) it complies with section 675; and 16
(b) if the chief inspector believes it must be revised under 17
section 678--the revision is made. 18
(3) The revision notice must-- 19
(a) state how the chief inspector believes the safety management 20
plan does not comply with section 675 or must be revised under 21
section 678; and 22
(b) state a period within which the operator must comply with the 23
revision notice; and 24
(c) be accompanied by, or include, an information notice about the 25
decisions to give the revision notice and to fix the stated period. 26
(4) The operator must comply with the revision notice. 27
Maximum penalty--1 500 penalty units. 28
682 Other inspector's powers not affected 29
The giving of a notice under this division does not limit or otherwise 30
affect an inspector's powers under this Act. 31
s 683 423 s 685
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Special provisions for safety management plans for coal 1
mining-CSG operating plant 2
683 Application of div 4 3
This division applies for a coal mining-CSG operating plant if-- 4
(a) the operator of the operating plant has a safety and health 5
management system for, or that includes, the operating plant; and 6
(b) the system complies with-- 7
(i) the Coal Mining Safety and Health Act, section 62; and 8
(ii) the content requirements under section 675 for a safety 9
management plan.567 10
684 Integration with safety and health management system 11
(1) The operator of the operating plant is taken to have complied with 12
sections 674 and 678.568 13
(2) The safety and health management system is taken to be, or include, 14
the safety management plan for the plant. 15
685 Alternative compliance with s 676 16
The operator of coal mining-CSG operating plant is taken to have 17
complied with section 676569 if the operator complies with the Coal Mining 18
Safety and Health Act, section 62(4) and (5).570 19
567 Coal Mining Safety and Health Act, section 62 (Safety and health management
system)
Section 675 (Content requirements for safety management plans)
568 Sections 674 (Requirement to have safety management plan) and 678 (When safety
management plan must be revised)
569 Section 676 (Publication of and access to safety management plan)
570 Coal Mining Safety and Health Act, section 62 (Safety and health management
system)
s 686 424 s 688
Petroleum and Gas (Production and Safety) Bill 2004
686 Restriction on application of div 3 1
The chief inspector can only give a notice under division 3571 for the 2
parts of the safety and health management system directly affecting the 3
operation of the operating plant. 4
PART 3--SAFETY POSITIONS AND REPORT 5
Division 1--Executive safety manager and safety report 6
687 Who is the "executive safety manager" of an operating plant 7
(1) This section provides for who is the "executive safety manager" for 8
the safety management plan for an operating plant. 9
(2) For a coal mining-CSG operating plant, the executive safety manager 10
is the site senior executive appointed under the Coal Mining Safety and 11
Health Act. 12
(3) Otherwise, the executive safety manager is-- 13
(a) if the operator is a corporation--the senior managing officer of 14
the corporation; or 15
(b) if the operator is an individual--the operator. 16
(4) In this section-- 17
"senior managing officer", of a corporation, means the person in 18
Australia who is the most senior officer (however called) of the 19
corporation in Australia responsible for managing the corporation. 20
688 Executive safety manager's general obligations 21
The executive safety manager of an operating plant must ensure-- 22
(a) the plant has-- 23
571 Division 3 (Validation of safety management plans)
s 689 425 s 689
Petroleum and Gas (Production and Safety) Bill 2004
(i) standard operating procedures, emergency response 1
procedures and any other information necessary for its safe 2
operation; and 3
(ii) necessary first aid, safety and other like equipment that is 4
appropriate for the likely hazards of the plant; and 5
(b) everyone working at the plant is trained to-- 6
(i) use equipment relevant to their duties; and 7
(ii) perform their duties and responsibilities under the safety 8
management plan for the plant; and 9
(c) all training in relation to the plant is recorded as soon as 10
practicable after it happens; and 11
(d) each record of training in relation to the plant-- 12
(i) is kept at the plant for a period of at least 5 years from when 13
it is made; and 14
(ii) is, during the period, available at the plant for inspection by 15
an inspector. 16
Maximum penalty--2 000 penalty units. 17
689 Executive safety manager must give annual safety report 18
(1) The executive safety manager for an operating plant must, on or 19
before 1 September each year, lodge a safety report for the plant in relation 20
to the preceding financial year that complies with section 690. 21
Maximum penalty--500 penalty units. 22
(2) The safety report must be lodged at-- 23
(a) the office of the department for lodging safety reports, as stated 24
in a gazette notice by the chief inspector; or 25
(b) if no office is gazetted under paragraph (a)--the office of the 26
chief inspector. 27
(3) It is not a defence to a proceeding for an offence against 28
subsection (1) that the lodging of the report or information it contains 29
might tend to incriminate the executive safety manager. 30
(4) However, evidence of, or evidence directly or indirectly derived 31
from, the report or information it contains that might tend to incriminate 32
the executive safety manager is not admissible in evidence against anyone, 33
s 690 426 s 690
Petroleum and Gas (Production and Safety) Bill 2004
other than in a proceeding for an offence for which the falsity or 1
misleading nature of the answer is relevant. 2
690 Content requirements for safety reports 3
(1) A safety report under section 689 must state all of the following 4
information for the operating plant the subject of the report for the financial 5
year to which the report relates-- 6
(a) the names and contact details of each of the following for the 7
plant-- 8
(i) its operator; 9
(ii) its executive safety manager; 10
(iii) any site safety manager; 11
(iv) any other person who is competent to discuss the 12
information about the plant in the report; 13
(b) the nature and extent of the activities carried out at the plant; 14
(c) significant safety risks at the plant; 15
(d) whether or not the activities and the plant complied with the 16
safety management plan for the plant and the Act; 17
(e) if the activities or the plant have not complied with the plan or 18
the Act-- 19
(i) details of each noncompliance; and 20
(ii) details of any remediation of the noncompliance; and 21
(iii) if the noncompliance has not been remedied in whole or 22
part--how it is proposed to remedy the noncompliance; 23
(f) if the operating plant was, during any of the financial year, in the 24
area of a coal or oil shale exploration tenement-- 25
(i) the hazards, or potential hazards, caused by the operation of 26
the operating plant to the safe and efficient mining in the 27
area of-- 28
(A) a mineable coal seam; or 29
(B) a mineable oil shale deposit prescribed under a 30
regulation; and 31
s 691 427 s 692
Petroleum and Gas (Production and Safety) Bill 2004
(ii) the location, stated in the way prescribed under a regulation, 1
of each hazard or potential hazard; and 2
(iii) measures taken to prevent or reduce the hazards or potential 3
hazards or to mitigate their effects. 4
(2) A safety report may relate to-- 5
(a) 1 or more of the stages for the plant; and 6
(b) more than 1 operating plant owned or operated by the same 7
person. 8
691 Obligation to give information to coal or oil shale exploration 9
tenement holder 10
(1) This section applies if an executive safety manager for an operating 11
plant gives a safety report and the operating plant is in the area of a coal or 12
oil shale exploration tenement. 13
(2) The executive safety manager must, as soon as practicable, give the 14
tenement holder the information in the report mentioned in 15
section 690(1)(f). 16
Maximum penalty--500 penalty units. 17
(3) Chapter 3, part 8,572 applies to any information given under this 18
section as if the information were given for the purposes of chapter 3. 19
Division 2--Site safety manager 20
692 Site safety manager 21
(1) If the safety management plan for an operating plant requires a site 22
safety manager for a site at the plant, the operator of the plant must appoint 23
an appropriately qualified person as the site safety manager for the site. 24
Maximum penalty--500 penalty units. 25
(2) The chief inspector may give the operator of an operating plant a 26
notice directing the operator to, within a stated reasonable period, appoint 27
1 or more appropriately qualified persons as a site safety manager for-- 28
572 Chapter 3 (Provisions for coal seam gas), part 8 (Confidentiality of information)
s 693 428 s 694
Petroleum and Gas (Production and Safety) Bill 2004
(a) a stated site at the plant; or 1
(b) a stated activity at a stated site at the plant. 2
(3) The operator must comply with the notice. 3
Maximum penalty--500 penalty units. 4
(4) More than 1 person may be appointed as a site safety manager for a 5
site at an operating plant. 6
693 Site safety manager's obligations 7
The site safety manager for a site at an operating plant must ensure-- 8
(a) each person who enters the site is given an appropriate induction 9
that enables the person to comply with section 702;573 and 10
(b) each person at the site complies with standard operating 11
procedures, emergency response procedures and other measures 12
necessary for the safety of the site and the person; and 13
(c) each person working at the site performs their functions safely 14
and follows standard operating procedures for the plant; and 15
(d) necessary first aid, safety and other like equipment that is 16
appropriate for the likely hazards of the site is-- 17
(i) available for use; and 18
(ii) adequately maintained; and 19
(iii) reasonably available to anyone authorised to be on the site; 20
and 21
(e) relevant staff are trained in first aid, emergency and other general 22
safety procedures. 23
Maximum penalty--1 000 penalty units. 24
694 Operator is default site safety manager 25
If no-one has been appointed as the site safety manager for a site at an 26
operating plant, the operator of the plant is the site safety manager for the 27
site. 28
573 Section 702 (Requirement to comply with safety management plan)
See also section 699 (General obligation to keep risk to acceptable level).
s 695 429 s 697
Petroleum and Gas (Production and Safety) Bill 2004
PART 4--OTHER SAFETY OBLIGATIONS 1
Division 1--Obligations relating to plant or equipment for use in 2
operating plant 3
695 Exclusion of application of division for coal mining-CSG 4
operating plant 5
This division does not apply for a coal mining-CSG operating plant.574 6
696 Designers, importers, manufacturers and suppliers 7
(1) This section applies if-- 8
(a) a person designs, imports, manufactures, modifies or supplies 9
plant or equipment for use at a particular operating plant; and 10
(b) a safety requirement applies to that type of plant or equipment. 11
(2) The person must take reasonable steps to ensure the plant or 12
equipment, as designed, imported, manufactured, modified or supplied, 13
complies with the safety requirement. 14
Maximum penalty--500 penalty units. 15
(3) If the person becomes aware of a defect or hazard associated with the 16
plant or equipment, the person must take reasonable steps to inform the 17
operator, or proposed operator, of the operating plant of-- 18
(a) the nature of the defect or hazard and its significance; and 19
(b) any controls or modifications the person is aware of that have 20
been developed to eliminate or correct the defect or hazard or to 21
manage the risk. 22
Maximum penalty--500 penalty units. 23
697 Installers 24
(1) If a safety requirement applies to a type of plant or equipment, a 25
person must not install plant or equipment of that type at an operating 26
574 For coal mining-CSG operating plant, see the Coal Mining Safety and Health Act,
sections 43 to 47.
s 698 430 s 699
Petroleum and Gas (Production and Safety) Bill 2004
plant, or proposed operating plant, unless the installation complies with the 1
safety requirement. 2
Maximum penalty--300 penalty units. 3
(2) If the person is or becomes, aware of a safety risk in relation to the 4
plant or equipment or the installation before the plant or equipment 5
becomes operational, the person-- 6
(a) must not operate the plant or equipment; and 7
(b) must give the operator of the operating plant, or proposed 8
operating plant, notice of the safety risk. 9
Maximum penalty--300 penalty units. 10
(3) The person must, before making the plant or equipment operational, 11
certify in the approved form that the installation complies with all relevant 12
safety requirements. 13
Maximum penalty--300 penalty units. 14
(4) In this section-- 15
"operator", of a proposed operating plant, means the person who will be 16
the operator of the plant when it becomes operational. 17
Division 2--Operating plant owners 18
698 Owner must ensure operator is competent 19
A person who owns an operating plant must ensure the operator of the 20
plant has the necessary competencies to operate the plant. 21
Maximum penalty--1 000 penalty units. 22
Division 3--Control and management of risk at operating plant 23
699 General obligation to keep risk to acceptable level 24
Each person at an operating plant must, to the extent of the person's 25
duties and responsibilities under this Act or the safety management plan for 26
the plant, take all necessary and reasonable action to ensure no person or 27
property at the plant is exposed to more than an acceptable level of risk. 28
Maximum penalty--100 penalty units. 29
s 700 431 s 701
Petroleum and Gas (Production and Safety) Bill 2004
700 What is an "acceptable level" of risk 1
(1) For a risk to a person or property to be at an "acceptable level", the 2
activities must be carried out so that the level of risk for the activities-- 3
(a) is within acceptable safety limits, having regard to each relevant 4
safety requirement; and 5
(b) is as low as is reasonably practicable. 6
(2) To decide whether the level of risk is within acceptable safety limits 7
and as low as reasonably practicable, regard must be made to-- 8
(a) the likelihood of injury or illness to a person, or of property 9
damage, from the risk; and 10
(b) the probable severity of the injury, illness or damage; and 11
(c) whether or not the risk is avoidable by reasonable means. 12
701 When acceptable level of risk is achieved 13
An acceptable level of risk to a person or property, from activities at an 14
operating plant is achieved if management and operating systems are in 15
effect that-- 16
(a) identify, analyse and assess risk; and 17
(b) remove, minimise or modify unacceptable or avoidable risks; and 18
(c) monitor levels of risk; and 19
(d) investigate and analyse the cause of actual, or high potential, 20
incidents at the plant to prevent or reduce their recurrence; and 21
(e) review the effectiveness of implemented risk control measures, 22
and take appropriate corrective and preventative action; and 23
(f) comply with any relevant regulation. 24
s 702 432 s 705
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Other obligations of persons at operating plant 1
702 Requirement to comply with safety management plan 2
A person at an operating plant must comply with safety procedures and 3
other obligations under the safety management plan for the plant to the 4
extent the procedures and obligations apply to the person. 5
Maximum penalty--100 penalty units. 6
703 Requirement to comply with instructions 7
A person at an operating plant must comply with lawful instructions 8
given for the safety of persons by the operator of, or a supervisor for, the 9
plant. 10
Maximum penalty--100 penalty units. 11
704 Wilful or reckless acts or omissions that affect safety 12
A person at an operating plant must not wilfully or recklessly do an act 13
or make an omission that might adversely affect the safety of anyone at the 14
plant. 15
Maximum penalty--500 penalty units. 16
Division 5--Hazard reporting for operating plant on coal or oil shale 17
mining lease 18
705 Operator's obligations 19
(1) This section applies if-- 20
(a) an operating plant, other than a coal mining-CSG operating 21
plant, is operated in the area of a coal or oil shale mining lease; 22
and 23
(b) the operation of the operating plant causes a hazard or potential 24
hazard to the safe and efficient mining in the area of-- 25
(i) a mineable coal seam; or 26
(ii) a mineable oil shale deposit; and 27
s 706 433 s 706
Petroleum and Gas (Production and Safety) Bill 2004
(c) the operator of the operating plant becomes aware, or ought 1
reasonably to have become aware, of the hazard or potential 2
hazard. 3
(2) The operator must immediately give the relevant person written or 4
oral notice of the hazard or potential hazard and its approximate location. 5
Maximum penalty--1 000 penalty units. 6
(3) The operator must, as soon as practicable, give the relevant person a 7
written report stating-- 8
(a) in the way prescribed under a regulation, the location of the 9
hazard or potential hazard; and 10
(b) the measures taken to prevent or reduce the hazard or potential 11
hazard or to mitigate its effects. 12
Maximum penalty--1 000 penalty units. 13
(4) In this section-- 14
"relevant person" means-- 15
(a) an inspector; and 16
(b) for a coal mining lease, either-- 17
(i) the relevant site senior executive under the Coal Mining 18
Safety and Health Act; or 19
(ii) if there is no relevant site senior executive--the coal mining 20
lease holder; and 21
(c) for an oil shale mining lease, either-- 22
(i) the relevant site senior executive under the Mining and 23
Quarrying Safety and Health Act 1999; or 24
(ii) if there is no relevant site senior executive--the oil shale 25
mining lease holder. 26
Division 6--Prescribed incident reporting and security of incident sites 27
706 Requirement to report prescribed incident 28
(1) A regulation may prescribe-- 29
(a) the types of incidents ("prescribed incidents") that must be 30
reported to the chief inspector; and 31
s 707 434 s 708
Petroleum and Gas (Production and Safety) Bill 2004
(b) the way in which prescribed incidents must be reported. 1
(2) If a prescribed incident happens, the following person must 2
immediately, or within a longer period prescribed under a regulation, report 3
the incident to the chief inspector in the prescribed way, unless it has 4
already been so reported by someone else-- 5
(a) if the incident happens at an operating plant and any person 6
nominated under the safety management plan for the plant to 7
make the report is present--that person; 8
(b) otherwise--the occupier of the site of the incident. 9
(3) A person is taken to have complied with subsection (2) if the Coal 10
Mining Safety and Health Act, section 198(1),575 applies to the person and 11
the person has complied with that subsection. 12
707 Action to restrict access to incident site 13
(1) An inspector may take action reasonably necessary to-- 14
(a) restrict access to a site the subject of a report under section 706; 15
or 16
(b) protect anything at the site from being tampered with. 17
(2) The inspector may authorise the relevant plant operator or site safety 18
manager to take the action for the inspector. 19
708 Offence to enter or remain in incident site if access restricted 20
(1) This section applies if, under section 707, action has been taken to 21
restrict access to a site the subject of a report under section 706. 22
(2) A person must not enter, or remain in, the site unless the person-- 23
(a) is an inspector, or is authorised by an inspector; or 24
(b) enters, or remains in, the site to save life or prevent further injury. 25
Maximum penalty--500 penalty units. 26
575 Coal Mining Safety and Health Act, section 198 (Notice of accidents, incidents or
diseases)
s 709 435 s 711
Petroleum and Gas (Production and Safety) Bill 2004
(3) A person on the site, other than an inspector, must take all reasonable 1
steps to minimise disturbance of the site. 2
Maximum penalty--500 penalty units. 3
PART 5--BOARDS OF INQUIRY 4
Division 1--Establishment and functions 5
709 Minister may establish board of inquiry 6
(1) The Minister may, by gazette notice, establish a board of inquiry for a 7
prescribed incident, other than an accident or incident for which a board of 8
inquiry has been established under the Coal Mining Safety and Health Act, 9
section 202(1).576 10
(2) The notice must state matters relevant to the inquiry including, for 11
example, its chairperson and terms of reference. 12
710 Membership of board 13
(1) A board of inquiry must consist of-- 14
(a) a magistrate; and 15
(b) no more than 3 independent persons with appropriate expert 16
knowledge relevant to the prescribed incident the subject of the 17
inquiry. 18
(2) The Minister must appoint the members of the board of inquiry. 19
(3) The magistrate is chairperson of the board. 20
711 Board's functions 21
(1) A board of inquiry must-- 22
576 Coal Mining Safety and Health Act, section 202 (Minister may establish boards of
inquiry)
s 712 436 s 713
Petroleum and Gas (Production and Safety) Bill 2004
(a) inquire into the circumstances and probable causes of the 1
prescribed incident the subject of the inquiry; and 2
(b) give the Minister a report of the board's findings as to the cause 3
of the prescribed incident. 4
(2) The report must record the recommendations the board considers 5
appropriate and other relevant matters. 6
(3) The Minister must publish the recommendations in the way the 7
Minister considers appropriate. 8
Division 2--Conduct of inquiry 9
712 Notice of inquiry 10
The chairperson of a board of inquiry must give at least 14 days notice of 11
the time and place of the inquiry to-- 12
(a) anyone the chairperson considers may be concerned with the 13
prescribed incident the subject of the inquiry; and 14
(b) anyone else the chairperson reasonably believes should be given 15
the opportunity to appear at the inquiry. 16
713 Inquiry procedures 17
A board of inquiry, in conducting its inquiry-- 18
(a) must observe natural justice; and 19
(b) must act as quickly, and with as little formality and technicality, 20
as is consistent with a fair and appropriate consideration of the 21
issues; and 22
(c) is not bound by the rules of evidence; and 23
(d) may conduct itself in a way it considers appropriate, including, 24
for example, by holding hearings; and 25
(e) must keep a record of its proceedings; and 26
(f) must comply with this division and procedural rules prescribed 27
under a regulation. 28
s 714 437 s 717
Petroleum and Gas (Production and Safety) Bill 2004
714 Inquiry to be public unless board directs 1
(1) A board or inquiry must hold its inquiry in public. 2
(2) However, the board may, of its own initiative or on the application of 3
a person represented at the inquiry-- 4
(a) direct the inquiry, or part of the inquiry, be held in private; and 5
(b) give directions about who may be present. 6
(3) The board may give a direction under subsection (2) only if it is 7
satisfied it is appropriate to do so. 8
715 Protection of members, representatives and witnesses 9
(1) A member of the board of inquiry has, in performing the member's 10
functions, the same immunity and protection as a Supreme Court judge. 11
(2) A lawyer or other person appearing before the board for someone 12
else has the same immunity and protection as a barrister appearing for a 13
party in a proceeding in the Supreme Court. 14
(3) A person summoned to attend or appearing before the board as a 15
witness has the same protection as a witness in a proceeding in the 16
Supreme Court. 17
716 Board's powers for inquiry 18
(1) A board of inquiry, in conducting its inquiry, may if it considers it 19
appropriate-- 20
(a) act in the absence of a person given notice of the inquiry or some 21
other reasonable notice; and 22
(b) receive evidence on oath or by statutory declaration; and 23
(c) adjourn the inquiry; and 24
(d) disregard a defect, error, omission or insufficiency in a document. 25
(2) The chairperson of the board may administer an oath to a person 26
appearing as a witness before the inquiry. 27
717 Who may participate at inquiry 28
A person given notice of the inquiry may call, examine, cross-examine 29
and re-examine witnesses, personally or by lawyer or another agent. 30
s 718 438 s 719
Petroleum and Gas (Production and Safety) Bill 2004
718 Witnesses 1
(1) The chairperson may, by a notice given to a person (a "witness"), 2
require the person to attend the inquiry at a stated time and place to give 3
evidence or produce stated documents or things. 4
(2) A witness must-- 5
(a) comply with the notice unless the witness has a reasonable 6
excuse; or 7
(b) continue to attend as required by the chairperson unless the 8
witness has a reasonable excuse. 9
Maximum penalty--200 penalty units. 10
(3) The chairperson must pay a witness the witness fee prescribed under 11
a regulation or, if no fee is prescribed, the fee the chairperson considers to 12
be reasonable. 13
(4) A witness must-- 14
(a) take an oath, or make an affirmation, when required to do so by 15
the chairperson; or 16
(b) answer a question or produce a document or thing when required 17
to do so by the chairperson unless the person has a reasonable 18
excuse. 19
Maximum penalty--200 penalty units. 20
(5) It is a reasonable excuse if answering the question or producing the 21
document or thing might tend to incriminate the witness. 22
719 Inspection by board of documents or things 23
(1) If a document or thing is produced at the inquiry, the board may-- 24
(a) inspect the document or thing; and 25
(b) make copies of, photograph, or take extracts from, the document 26
or thing if it is relevant to the inquiry. 27
(2) The board may also take possession of the document or thing, and 28
keep it while it is necessary for the inquiry. 29
(3) While it keeps a document or thing, the board must allow a person 30
otherwise entitled to possession of the document or thing to inspect, make 31
copies of, photograph, or take extracts from, the document or thing, at a 32
place and time the board considers to be reasonable. 33
s 720 439 s 723
Petroleum and Gas (Production and Safety) Bill 2004
Division 3--Miscellaneous provisions 1
720 Relationship with proceedings 2
A board of inquiry may start, continue or finish its proceedings, and a 3
report may be prepared or given, despite a proceeding, unless a court or 4
tribunal of competent jurisdiction orders otherwise. 5
721 False or misleading statements or document to board 6
(1) A person must not state anything to a board of inquiry that the person 7
knows is false or misleading in a material particular. 8
Maximum penalty--500 penalty units. 9
(2) A person must not give a board of inquiry a document or thing the 10
person knows is false or misleading in a material particular. 11
Maximum penalty--500 penalty units. 12
722 Contempt of board 13
A person must not-- 14
(a) insult a board of inquiry; or 15
(b) deliberately interrupt an inquiry of a board of inquiry; or 16
(c) create or continue, or join in creating or continuing, a disturbance 17
in or near a place where a board of inquiry is conducting its 18
inquiry; or 19
(d) do anything that would be contempt of court if a board of inquiry 20
were a judge acting judicially. 21
Maximum penalty--200 penalty units. 22
723 Change of board membership 23
A board of inquiry is not affected by a change in its membership. 24
s 724 440 s 725
Petroleum and Gas (Production and Safety) Bill 2004
PART 6--RESTRICTIONS ON GAS WORK 1
Division 1--Preliminary 2
724 Types of gas device 3
(1) A "gas device (type A)" is a device, or system of devices, used, or 4
designed or intended for use for a purpose mentioned in subsection (2), the 5
design of which has been certified by any of the following as complying 6
with safety requirements applying to that type of device-- 7
(a) the chief inspector; 8
(b) a person or body approved by the chief inspector. 9
10
Examples of a gas device (type A)--
11
a gas cooker or hot water service
(2) For subsection (1), the purposes are-- 12
(a) for production of heat, light or power; or 13
(b) for refrigeration for which gas is the fuel; or 14
(c) as a propellant. 15
(3) A "gas device (type B)" is a device used, or designed or intended for 16
use-- 17
(a) for a purpose mentioned in subsection (2) that has not been 18
certified as mentioned in subsection (1); or 19
(b) for refrigeration for which gas is the refrigerant; or 20
(c) as a feed stock in a manufacturing process. 21
22
Examples of gas devices (type B)--
23
· a fuel gas system for a motor vehicle or vessel
24
· a major industrial plant
25
· a refrigeration system for which gas is the refrigerant
725 What is "gas work" 26
"Gas work" is the work of installing, removing, altering, repairing, 27
servicing, testing or certifying the gas system of a gas device. 28
s 726 441 s 728
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Restrictions 1
726 Gas devices (type A) 2
A person must not carry out gas work in relation to a gas device (type A) 3
unless the person holds a gas work licence that allows the person to carry 4
out that work. 5
Maximum penalty--500 penalty units. 6
727 Gas devices (type B) 7
A person must not carry out gas work in relation to a gas device (type B) 8
unless-- 9
(a) a gas work authorisation has been issued for the device; and 10
(b) the person holds the authorisation, or is acting under the holder's 11
authority; and 12
(c) the work complies with the authorisation. 13
Maximum penalty--500 penalty units. 14
Division 3--Gas work licences and authorisations 15
728 Chief inspector's power to issue 16
(1) The chief inspector may, subject to a regulation made under 17
section 859,577 issue any of the following-- 18
(a) a gas work licence for an individual to carry out gas work in 19
relation to a gas device (type A), or a type of gas device (type A); 20
(b) a person with a gas work authorisation for a gas device (type B), 21
or a type of gas device (type B). 22
(2) A gas work licence or authorisation may be-- 23
(a) limited to a stated type of gas work; and 24
(b) issued subject to conditions. 25
577 Section 859 (Regulation-making power)
s 729 442 s 731
Petroleum and Gas (Production and Safety) Bill 2004
729 Offence not to comply with conditions 1
The holder of a gas work licence or authorisation must comply with its 2
conditions. 3
Maximum penalty--250 penalty units. 4
730 Register of gas work licences and authorisations 5
The chief inspector must keep a register of details about gas work 6
licences and authorisations. 7
731 Access to register 8
(1) The chief inspector must-- 9
(a) keep the register of gas work licences and authorisations open for 10
inspection by the public during office hours on business days 11
at-- 12
(i) the department's head office; and 13
(ii) other places the chief inspector considers appropriate; and 14
(b) allow a person to take extracts, free of charge, from the register; 15
and 16
(c) give a person who asks for a copy of all or part of a document or 17
information held in the register the copy on payment of the fee 18
prescribed under a regulation. 19
(2) This section does not apply to any part of the register that discloses 20
the residential address of-- 21
(a) a gas work licence or authorisation holder who is an individual; 22
or 23
(b) an individual authorised by a gas work authorisation holder to 24
carry out gas work. 25
s 732 443 s 733
Petroleum and Gas (Production and Safety) Bill 2004
PART 7--MISCELLANEOUS PROVISIONS 1
732 Increase in maximum penalties in circumstances of aggravation 2
(1) This section provides for the maximum penalty for an offence against 3
a provision of part 2, 4 or 6 if the act or omission that constitutes the 4
offence caused a circumstance stated in subsection (3). 5
(2) If a circumstance stated in subsection (3) has happened, the 6
maximum penalty stated in the subsection applies instead of the maximum 7
penalty stated in another provision. 8
(3) For this section, the circumstances and maximum penalties are-- 9
(a) for the death of, or grievous bodily harm to, more than 10
1 person--5 000 penalty units or 3 years imprisonment; or 11
(b) for the death of, or grievous bodily harm to, only 12
1 person--3 000 penalty units or 2 years imprisonment; or 13
(c) for the exposure of anyone to a substance likely to cause death or 14
grievous bodily harm--1 000 penalty units or 1 year's 15
imprisonment; or 16
(d) for bodily harm--1 000 penalty units or 1 year's imprisonment; 17
or 18
(e) for serious property damage--1 000 penalty units or 6 months 19
imprisonment. 20
733 Certification of gas device or gas fitting 21
(1) A person who imports or manufactures a gas device (type A) or (type 22
B) or a gas fitting must certify in the approved form that the appliance or 23
fitting complies with safety requirements applying to that type of appliance 24
or fitting. 25
Maximum penalty--250 penalty units. 26
(2) A person must not offer for sale, install or use a gas device (type A) 27
or (type B) or a gas fitting unless the offer for sale, installation or use has 28
been approved by the chief inspector or a person or body approved by the 29
chief inspector. 30
Maximum penalty--200 penalty units. 31
s 734 444 s 734
Petroleum and Gas (Production and Safety) Bill 2004
(3) In this section-- 1
"gas fitting" means-- 2
(a) any component of a gas device (type A) or (type B); or 3
(b) a thing used, or designed or intended for use-- 4
(i) with a gas device (type A) or (type B); or 5
(ii) in the supply, distribution or consumption of fuel gas. 6
734 Safety obligations of gas system installer 7
(1) If a safety requirement applies to a type of gas system, a person must 8
not install a system of that type unless the installation complies with the 9
safety requirement. 10
Maximum penalty--300 penalty units. 11
(2) If the person is, or becomes aware of, a safety risk in relation to the 12
gas system, or its installation, before the gas system becomes operational 13
the person-- 14
(a) must not operate the gas system; and 15
(b) must give the owner, operator or proposed operator of the gas 16
system notice of the safety risk. 17
Maximum penalty--300 penalty units. 18
(3) The installer must, before making the gas system operational, certify 19
in the approved form that the installation complies with all relevant safety 20
requirements. 21
Maximum penalty--300 penalty units.578 22
578 See also part 6, division 2 (Restrictions).
s 735 445 s 736
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 10--INVESTIGATIONS AND 1
ENFORCEMENT 2
PART 1--INVESTIGATIONS 3
Division 1--Inspectors and authorised officers 4
735 Appointment 5
(1) The chief executive may appoint a public service officer as one of the 6
following-- 7
(a) the chief inspector, petroleum and gas; 8
(b) the deputy chief inspector, petroleum and gas; 9
(c) an inspector, petroleum and gas; 10
(d) an authorised officer. 11
(2) However, the chief executive may appoint a person under 12
subsection (1) only if satisfied the person is qualified for appointment and 13
has the necessary expertise or experience. 14
736 Functions 15
(1) The functions of an inspector include each of the following-- 16
(a) conducting audits, inspections and investigations to monitor and 17
enforce compliance with safety management plans and 18
provisions of this Act relating to safety; 19
(b) investigating incidents; 20
(c) responding to dangerous and emergency situations involving 21
petroleum or fuel gas; 22
(d) collecting information for this Act. 23
(2) The functions of an authorised officer include-- 24
(a) conducting audits, investigations and inspections to monitor and 25
enforce compliance with provisions of this Act other than 26
provisions relating to safety; and 27
(b) collecting information for this Act. 28
s 737 446 s 738
Petroleum and Gas (Production and Safety) Bill 2004
(3) An inspector or authorised officer is declared to be a public official 1
for the Police Powers and Responsibilities Act 2000 if the inspector or 2
authorised officer is performing, or is proposing to perform, a function the 3
inspector or authorised officer has under this section.579 4
737 Appointment conditions and limit on powers 5
(1) A person who is an inspector or authorised officer holds office on any 6
conditions stated in-- 7
(a) the person's instrument of appointment; or 8
(b) a signed notice given to the person. 9
(2) The instrument of appointment, a signed notice given to the person or 10
a regulation may limit the person's functions or powers under this Act for 11
the office. 12
(3) An inspector is also subject to the directions of the chief inspector in 13
exercising the functions or powers. 14
(4) In this section-- 15
"signed notice" means a notice signed by-- 16
(a) for the chief inspector--the chief executive; or 17
(b) for another inspector--the chief inspector; or 18
(c) for an authorised officer--the chief executive. 19
738 Issue of identity card 20
(1) The chief executive must issue an identity card to each person who is 21
an inspector or authorised officer. 22
(2) The identity card must-- 23
(a) contain a recent photo of the person; and 24
(b) contain a copy of the person's signature; and 25
(c) identify the person as an inspector or authorised officer under this 26
Act; and 27
(d) state an expiry date for the card. 28
579 See the Police Powers and Responsibilities Act 2000, chapter 1, part 3, division 2
(Helping public officials).
s 739 447 s 741
Petroleum and Gas (Production and Safety) Bill 2004
(3) This section does not prevent the issue of a single identity card to a 1
person for this Act and other purposes. 2
739 Production or display of identity card 3
(1) In exercising a power under this Act in relation to another person, an 4
inspector or authorised officer must-- 5
(a) produce his or her identity card for the person's inspection before 6
exercising the power; or 7
(b) have the identity card displayed so it is clearly visible to the 8
person when exercising the power. 9
(2) However, if it is not practicable to comply with subsection (1), the 10
inspector or authorised officer must produce the identity card for the 11
person's inspection at the first reasonable opportunity. 12
(3) For subsection (1), an inspector or authorised officer does not 13
exercise a power in relation to a person only because the inspector or 14
officer has entered a place as mentioned in section 743(1)(b) or (2). 15
740 When inspector or authorised officer ceases to hold office 16
(1) A person who is an inspector or authorised officer ceases to hold 17
office if any of the following happens-- 18
(a) the term of office stated in a condition of office ends; 19
(b) under another condition of office, the person ceases to hold the 20
office; 21
(c) the person's resignation under section 741 takes effect. 22
(2) Subsection (1) does not limit the ways the person may cease to hold 23
the office. 24
(3) In this section-- 25
"condition of office" means a condition on which the person holds office. 26
741 Resignation 27
An inspector or authorised officer may resign by a signed notice given to 28
the chief executive. 29
s 742 448 s 743
Petroleum and Gas (Production and Safety) Bill 2004
742 Return of identity card 1
A person who ceases to be an inspector or authorised officer must return 2
the person's identity card to the chief executive within 20 business days 3
after ceasing to be an inspector or authorised officer unless the person has a 4
reasonable excuse. 5
Maximum penalty--20 penalty units. 6
Division 2--Powers of entry of inspectors and authorised officers 7
743 Power of entry--general 8
(1) An inspector or authorised officer may enter a place if-- 9
(a) its occupier consents to the entry; or 10
(b) it is a public place and the entry is made when it is open to the 11
public; or 12
(c) the entry is authorised by a warrant; or 13
(d) it is a place of business to which this Act relates and the entry is 14
made when the place is open for business or otherwise open for 15
entry; or 16
(e) its occupier has been given a compliance direction and the entry 17
is made, at a time or interval stated in the direction, to check 18
compliance with the direction; or 19
(f) the inspector or authorised officer may enter the place under 20
sections 744 to 746. 21
(2) For the purpose of asking the occupier of a place for consent to enter, 22
an inspector or authorised officer may, without the occupier's consent or a 23
warrant-- 24
(a) enter land around premises at the place to an extent that is 25
reasonable to contact the occupier; or 26
(b) enter part of the place the inspector or authorised officer 27
reasonably considers members of the public ordinarily are 28
allowed to enter when they wish to contact the occupier. 29
(3) In this section-- 30
"place of business" does not include a part of the place where a person 31
resides. 32
s 744 449 s 744
Petroleum and Gas (Production and Safety) Bill 2004
744 Inspector's additional entry power for emergency or incident 1
(1) An inspector may enter a place if-- 2
(a) the inspector reasonably suspects-- 3
(i) an emergency exists, or may exist, involving petroleum or 4
fuel gas or suspected petroleum or fuel gas at the place; and 5
(ii) the emergency is causing, or is likely to cause imminent and 6
significant harm to persons or damage to property; or 7
(b) an incident is happening at the place and-- 8
(i) the incident is causing harm to persons or property; and 9
(ii) it is reasonably necessary for the inspector to enter the place 10
to investigate and manage the incident to the extent it relates 11
to petroleum or fuel gas. 12
(2) Before entering the place, the inspector must do, or make a 13
reasonable attempt to do, each of the following things if the occupier of the 14
place or a public official exercising functions or powers in relation to the 15
place is present at the place-- 16
(a) identify himself or herself to the occupier or official in the way 17
stated section 739; 18
(b) tell the occupier or official the purpose of the entry; 19
(c) seek the consent of the occupier or official to the entry; 20
(d) tell the occupier or official the inspector is permitted under this 21
Act to enter the place without consent or a warrant; 22
(e) give the occupier or official an opportunity to allow the inspector 23
immediate entry to the place without using force. 24
(3) However, the inspector need not comply with subsection (2) if-- 25
(a) for entry under subsection (1)(a)--the inspector reasonably 26
believes that immediate entry to the place is required to avoid 27
imminent and significant harm to persons or property; or 28
(b) for entry under subsection (1)(b)--complying with the 29
subsection may frustrate or otherwise prevent an investigation of 30
the incident the subject of the entry. 31
(4) In this section-- 32
"public official" means-- 33
s 745 450 s 747
Petroleum and Gas (Production and Safety) Bill 2004
(a) a police officer; or 1
(b) a person who is appointed or authorised under a law to perform 2
inspection, investigation or other enforcement functions under 3
the law. 4
745 Inspector's additional entry power for operating plant 5
An inspector may enter an operating plant at any reasonable time, other 6
than a part of the plant where a person resides. 7
746 Authorised officer's additional entry power for petroleum 8
authority 9
An authorised officer may enter land the subject of a petroleum authority 10
at any reasonable time, other than a part of the land where a person resides. 11
Division 3--Procedure for entry 12
747 Entry with consent 13
(1) This section applies if an inspector or authorised officer intends to 14
ask an occupier of a place to consent to the inspector or authorised officer 15
or another inspector or authorised officer entering the place under 16
section 743(1)(a). 17
(2) Before asking for the consent, the inspector or authorised officer 18
must tell the occupier-- 19
(a) the purpose of the entry; and 20
(b) that the occupier is not required to consent. 21
(3) If the consent is given, the inspector or authorised officer may ask the 22
occupier to sign an acknowledgment of the consent. 23
(4) The acknowledgment must state-- 24
(a) the occupier has been told-- 25
(i) the purpose of the entry; and 26
(ii) that the occupier is not required to consent; and 27
(b) the purpose of the entry; and 28
s 748 451 s 749
Petroleum and Gas (Production and Safety) Bill 2004
(c) the occupier gives the inspector or authorised officer consent to 1
enter the place and exercise powers under this division; and 2
(d) the time and date the consent was given. 3
(5) If the occupier signs the acknowledgment, the inspector or authorised 4
officer must immediately give a copy to the occupier. 5
(6) If-- 6
(a) an issue arises in a proceeding about whether the occupier 7
consented to the entry; and 8
(b) an acknowledgment complying with subsection (4) for the entry 9
is not produced in evidence; 10
the onus of proof is on the person relying on the lawfulness of the entry to 11
prove the occupier consented. 12
748 Application for warrant 13
(1) An inspector or authorised officer may apply to a magistrate for a 14
warrant for a place. 15
(2) The inspector or authorised officer must prepare a written application 16
that states the grounds on which the warrant is sought. 17
(3) The written application must be sworn. 18
(4) The magistrate may refuse to consider the application until the 19
inspector or authorised officer gives the magistrate all the information the 20
magistrate requires about the application in the way the magistrate 21
requires. 22
23
Example--
24
The magistrate may require additional information supporting the application to be
25
given by statutory declaration.
749 Issue of warrant 26
(1) The magistrate may issue the warrant for the place only if the 27
magistrate is satisfied there are reasonable grounds for suspecting-- 28
(a) there is a particular thing or activity (the "evidence") that may 29
provide evidence of an offence against this Act; and 30
(b) the evidence is at the place or, within the next 7 days, will be at 31
the place. 32
s 750 452 s 750
Petroleum and Gas (Production and Safety) Bill 2004
(2) The warrant must state-- 1
(a) the place to which the warrant applies; and 2
(b) that a stated inspector or authorised officer may, with necessary 3
and reasonable help and force-- 4
(i) enter the place and any other place necessary for entry to the 5
place; and 6
(ii) exercise the inspector's or authorised officer's powers under 7
this part; and 8
(c) particulars of the offence that the magistrate considers 9
appropriate in the circumstances; and 10
(d) the name of the person suspected of having committed the 11
offence, unless the name is unknown or the magistrate considers 12
it inappropriate to state the name; and 13
(e) the evidence that may be seized under the warrant; and 14
(f) the hours of the day or night when the place may be entered; and 15
(g) the magistrate's name; and 16
(h) the date and time of the warrant's issue; and 17
(i) the date, within 14 days after the warrant's issue, the warrant 18
ends. 19
750 Application by electronic communication and duplicate warrant 20
(1) An application under section 749 may be made by phone, fax, email, 21
radio, videoconferencing or another form of electronic communication if 22
the inspector or authorised officer reasonably considers it necessary 23
because of-- 24
(a) urgent circumstances; or 25
(b) other special circumstances, including, for example, the 26
inspector's or authorised officer's remote location. 27
(2) The application-- 28
(a) may not be made before the inspector or authorised officer 29
prepares the written application under section 748(2); but 30
(b) may be made before the written application is sworn. 31
s 750 453 s 750
Petroleum and Gas (Production and Safety) Bill 2004
(3) The magistrate may issue the warrant (the "original warrant") only 1
if the magistrate is satisfied-- 2
(a) it was necessary to make the application under subsection (1); 3
and 4
(b) the way the application was made under subsection (1) was 5
appropriate. 6
(4) After the magistrate issues the original warrant-- 7
(a) if there is a reasonably practicable way of immediately giving a 8
copy of the warrant to the inspector or authorised officer, for 9
example, by sending a copy by fax or email, the magistrate must 10
immediately give a copy of the warrant to the inspector or 11
authorised officer; or 12
(b) otherwise-- 13
(i) the magistrate must tell the inspector or authorised officer 14
the date and time the warrant is issued and the other terms 15
of the warrant; and 16
(ii) the inspector or authorised officer must complete a form of 17
warrant, including by writing on it-- 18
(A) the magistrate's name; and 19
(B) the date and time the magistrate issued the warrant; 20
and 21
(C) the other terms of the warrant. 22
(5) The copy of the warrant mentioned in subsection (4)(a), or the form 23
of warrant completed under subsection (4)(b) (in either case the "duplicate 24
warrant"), is a duplicate of, and as effectual as, the original warrant. 25
(6) The inspector or authorised officer must, at the first reasonable 26
opportunity, send the magistrate-- 27
(a) the written application complying with section 748(2) and (3); 28
and 29
(b) if the inspector or authorised officer completed a form of warrant 30
under subsection (4)(b)--the completed form of warrant. 31
(7) The magistrate must keep the original warrant and, on receiving the 32
documents under subsection (6)-- 33
(a) attach the documents to the original warrant; and 34
s 751 454 s 752
Petroleum and Gas (Production and Safety) Bill 2004
(b) give the original warrant and documents to the clerk of the court 1
of the relevant magistrates court. 2
(8) Despite subsection (5), if-- 3
(a) an issue arises in a proceeding about whether an exercise of a 4
power was authorised by a warrant issued under this section; and 5
(b) the original warrant is not produced in evidence; 6
the onus of proof is on the person relying on the lawfulness of the exercise 7
of the power to prove a warrant authorised the exercise of the power. 8
(9) This section does not limit section 748. 9
(10) In this section-- 10
"relevant magistrates court", in relation to a magistrate, means the 11
Magistrates Court that the magistrate constitutes under the 12
Magistrates Act 1991. 13
751 Defect in relation to a warrant 14
(1) A warrant is not invalidated by a defect in the warrant, or in 15
compliance with section 748, 749 or 750, unless the defect affects the 16
substance of the warrant in a material particular. 17
(2) In this section-- 18
"warrant" includes a duplicate warrant mentioned in section 750(5). 19
752 Warrants--procedure before entry 20
(1) This section applies if an inspector or authorised officer named in a 21
warrant issued under this division for a place is intending to enter the place 22
under the warrant. 23
(2) Before entering the place, the inspector or authorised officer must do 24
or make a reasonable attempt to do the following things-- 25
(a) identify himself or herself to a person present at the place who is 26
an occupier of the place, in the way stated in section 739;580 27
(b) give the person a copy of the warrant; 28
580 Section 739 (Production or display of identity card)
s 753 455 s 754
Petroleum and Gas (Production and Safety) Bill 2004
(c) tell the person the inspector or authorised officer is permitted by 1
the warrant to enter the place; 2
(d) give the person an opportunity to allow the inspector or 3
authorised officer immediate entry to the place without using 4
force. 5
(3) However, the inspector or authorised officer need not comply with 6
subsection (2) if the inspector or authorised officer believes on reasonable 7
grounds that immediate entry to the place is required to ensure the effective 8
execution of the warrant is not frustrated. 9
(4) In this section-- 10
"warrant" includes a duplicate warrant mentioned in section 750(5). 11
Division 4--Powers after entering a place 12
753 Application of div 4 13
(1) This division applies if an inspector or authorised officer has, under 14
division 2, entered a place. 15
(2) However, if, under section 743(2), an inspector or authorised officer 16
enters a place to ask the occupier's consent to enter premises, this division 17
applies to the inspector or authorised officer only if the consent is given or 18
the entry is otherwise authorised. 19
754 General powers 20
The inspector or authorised officer may do all or any of the following-- 21
(a) search any part of the place; 22
(b) inspect, measure, test, photograph or film any part of the place or 23
anything at the place; 24
(c) take a thing, or a sample of or from a thing, at the place for 25
analysis or testing; 26
(d) copy a document at the place; 27
(e) take into or onto the place any person, equipment and materials 28
the inspector or authorised officer reasonably requires for the 29
exercise of a power under this division. 30
s 755 456 s 757
Petroleum and Gas (Production and Safety) Bill 2004
755 Power to require reasonable help 1
(1) The inspector or authorised officer may require a person at the place 2
or anywhere else, to give the inspector or authorised officer reasonable 3
help, including, for example, by producing a document or giving 4
information, to-- 5
(a) exercise a power under this division; or 6
(b) work out whether this Act is being complied with. 7
(2) When making the requirement, the inspector or authorised officer 8
must warn the person it is an offence to fail to comply with the requirement 9
unless the person has a reasonable excuse. 10
756 Failure to comply with help requirement 11
(1) A person of whom a requirement under section 755 has been made 12
must comply with the requirement unless the person has a reasonable 13
excuse. 14
Maximum penalty--200 penalty units. 15
(2) It is a reasonable excuse for an individual not to comply with the 16
requirement if complying with the requirement might tend to incriminate 17
the individual. 18
(3) However, subsection (2) does not apply if the requirement is to 19
produce a document required to be held or kept by the individual under this 20
Act. 21
Division 5--Power to obtain information 22
757 Power to require name and address 23
(1) This section applies if-- 24
(a) an inspector or authorised officer finds a person committing an 25
offence against this Act; or 26
(b) an inspector or authorised officer finds a person in circumstances 27
that lead, or has information that leads, the inspector or 28
authorised officer to reasonably believe the person has just 29
committed an offence against this Act. 30
s 758 457 s 758
Petroleum and Gas (Production and Safety) Bill 2004
(2) The inspector or authorised officer may require the person to state the 1
person's name and residential address. 2
(3) When making the requirement, the inspector or authorised officer 3
must warn the person it is an offence to fail to state the person's name or 4
residential address unless the person has a reasonable excuse. 5
(4) The inspector or authorised officer may require the person to give 6
evidence of the correctness of the stated name or residential address if the 7
inspector or authorised officer reasonably suspects the stated name or 8
address to be false. 9
758 Power to require production of documents 10
(1) An inspector or authorised officer may require a person to make 11
available for inspection by an inspector or authorised officer, or produce to 12
the inspector or authorised officer for inspection, at a reasonable time and 13
place nominated by the inspector or authorised officer-- 14
(a) a document given to the person under this Act; or 15
(b) a document required to be held, kept or made by the person under 16
this Act. 17
(2) The inspector or authorised officer may ask the person to give the 18
inspector or authorised officer a copy of the document within a reasonable 19
period. 20
(3) If the inspector or authorised officer asks for and is given a copy of a 21
document mentioned in subsection (1)(b), the inspector or officer may 22
require the person responsible for keeping the document to certify the copy 23
as a true copy of the document. 24
(4) If a request under subsection (2) is not complied with within a 25
reasonable period, the inspector or authorised officer may-- 26
(a) take the document to copy it; and 27
(b) require the person responsible for keeping the document to 28
certify the copy as a true copy of the document. 29
(5) The inspector or authorised officer must return the document to the 30
person as soon as practicable after copying it. 31
(6) However, if a requirement is made of a person under subsection (3) 32
or (4), the inspector or authorised officer may keep the document until the 33
person complies with the requirement. 34
s 759 458 s 762
Petroleum and Gas (Production and Safety) Bill 2004
759 Failure to produce document 1
(1) A person of whom a requirement under section 758(2) has been made 2
must comply with the requirement unless the person has a reasonable 3
excuse. 4
Maximum penalty--200 penalty units. 5
(2) It is a reasonable excuse for an individual not to comply with a 6
document production requirement if complying with the requirement might 7
tend to incriminate the individual. 8
(3) However, subsection (2) does not apply if the requirement is to 9
produce a document required to be held or kept by the person under this 10
Act. 11
760 Failure to certify copy of document 12
A person of whom a requirement under section 758(3) or (4) has been 13
made must comply with the requirement unless the person has a reasonable 14
excuse. 15
Maximum penalty--200 penalty units. 16
761 Power to require information 17
(1) This section applies if an inspector or authorised officer reasonably 18
believes-- 19
(a) an offence against this Act has been committed; and 20
(b) a person may be able to give information about the offence. 21
(2) The inspector or authorised officer may, by a notice given to the 22
person, require the person to give information about the offence to the 23
inspector or authorised officer at a stated reasonable place and at a stated 24
reasonable time. 25
762 Failure to comply with information requirement 26
(1) A person to whom a notice under section 761 has been given must 27
comply with the notice unless the person has a reasonable excuse. 28
Maximum penalty--200 penalty units. 29
(2) It is a reasonable excuse for an individual to fail to give information 30
if giving the information might tend to incriminate the individual. 31
s 763 459 s 764
Petroleum and Gas (Production and Safety) Bill 2004
Division 6--Seizure and forfeiture 1
Subdivision 1--Seizure powers 2
763 Power to seize things 3
(1) An inspector or authorised officer who, under this part, enters a place 4
may seize a thing at the place if-- 5
(a) the inspector or authorised officer reasonably believes the 6
thing-- 7
(i) is, or may be, evidence of an offence against this Act; or 8
(ii) may be required to investigate an incident; and 9
(b) for an entry made with the occupier's consent--seizure of the 10
thing is consistent with the purpose of entry as told to the 11
occupier. 12
(2) An inspector or authorised officer who enters a place under a warrant 13
may seize the evidence for which the warrant was issued. 14
(3) An inspector or authorised officer may also seize anything else at a 15
place mentioned in subsection (1) or (2) if the inspector or officer 16
reasonably believes-- 17
(a) the thing is, or may be, evidence of an offence against this Act; or 18
(b) the seizure is necessary to prevent the thing being destroyed, 19
hidden or lost or used to continue or repeat the offence; or 20
(c) the thing has just been used in committing an offence against this 21
Act. 22
764 Seizure of thing subject to security 23
(1) An inspector or authorised officer may, under this Act, seize a thing 24
or exercise powers in relation to it despite a lien or other security over it 25
claimed by another person. 26
(2) However, the seizure does not affect the person's claim to the lien or 27
other security against a person other than the inspector or authorised officer 28
or a person acting for the inspector or authorised officer. 29
s 765 460 s 767
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 2--Powers to support seizure 1
765 Directions to person in control 2
(1) To enable a thing to be seized under this part, an inspector or 3
authorised officer may require the person in control of it-- 4
(a) to take it to a stated reasonable place by a stated reasonable time; 5
and 6
(b) if necessary, to remain in control of it at the stated place for a 7
stated reasonable period. 8
(2) The requirement-- 9
(a) must be made by notice; or 10
(b) if for any reason it is not practicable to give the notice, may be 11
made orally and confirmed by a notice in the approved form as 12
soon as practicable. 13
766 Failure to comply with seizure direction 14
A person of whom a requirement under section 765 has been made must 15
comply with the requirement unless the person has a reasonable excuse. 16
Maximum penalty--100 penalty units. 17
767 General powers for seized things 18
Having seized a thing under this part, an inspector or authorised officer 19
may do 1 or more of the following-- 20
(a) move it from the place where it was seized; 21
(b) leave it at the place but take reasonable action to restrict access to 22
it; 23
24
Examples of restricting access to a thing--
25
1. Brand, mark, seal, tag or otherwise identify it to show access to it is
26
restricted.
27
2. Sealing the entrance to a room where the thing is situated and marking
28
it to show access to it is restricted.
(c) for equipment--make it inoperable. 29
s 768 461 s 769
Petroleum and Gas (Production and Safety) Bill 2004
1
Example of making equipment inoperable--
2
Dismantling equipment or removing a component of equipment without
3
which the equipment is not capable of being used.
768 Offence to unlawfully interfere with seized thing 4
(1) A person, other than an inspector or authorised officer, must not do, 5
or attempt to do, any of the following acts in relation to a thing seized 6
under this part unless the person has a reasonable excuse-- 7
(a) unlawfully interfere with the thing or something done under 8
section 767(b) to restrict access to it; 9
(b) enter, or be at, the place where the thing is being kept; 10
(c) move the thing from the place where it is being kept. 11
Maximum penalty--100 penalty units. 12
(2) It is a reasonable excuse if the act is authorised by an inspector or 13
authorised officer. 14
769 Testing seized things 15
(1) An inspector may carry out, or arrange to have carried out, scientific 16
or other tests on a thing seized under this Act to investigate an incident. 17
(2) The testing may have the effect of destroying the thing if-- 18
(a) the thing is a sample of petroleum or fuel gas; or 19
(b) for another thing-- 20
(i) its destruction is necessary for the carrying out of the test; 21
and 22
(ii) there is no other reasonable course available to achieve the 23
purpose of the test; and 24
(iii) subsections (3) to (6) are complied with. 25
(3) For subsection (2)(b)(iii), the chief inspector must give any owner of 26
the thing of whom the chief inspector is aware a notice of the proposed test 27
before it is carried out. 28
(4) The notice must state-- 29
(a) a reasonable period for the owner to lodge submissions as to why 30
the thing should be preserved; and 31
s 770 462 s 771
Petroleum and Gas (Production and Safety) Bill 2004
(b) where the submissions may be lodged. 1
(5) The notice must provide for the submissions to be lodged at-- 2
(a) the office of the department for lodging the submissions, as 3
stated in a gazette notice by the chief inspector; or 4
(b) if no office is gazetted under paragraph (a)--the office of the 5
chief inspector. 6
(6) Before destroying the thing the chief inspector must consider any 7
submissions lodged by the owner during the stated period. 8
Subdivision 3--Safeguards for seized property 9
770 Receipt and information notice for seized things 10
(1) As soon as possible after an inspector or authorised officer seizes a 11
thing, the inspector or authorised officer must give the person from whom it 12
was seized-- 13
(a) a receipt for the thing that generally describes the thing and its 14
condition; and 15
(b) an information notice about the decision to make the seizure. 16
(2) However, if for any reason it is not practicable to comply with 17
subsection (1), the inspector or authorised officer must leave the receipt at 18
the place where it was seized, in a reasonably secure way and in a 19
conspicuous position. 20
(3) The information notice and receipt may-- 21
(a) be given in the same document; and 22
(b) relate to more than 1 seized thing. 23
(4) This section does not apply to a thing if it is impractical or would be 24
unreasonable to give the receipt, given the thing's nature, condition and 25
value. 26
771 Access to seized things 27
(1) Until a thing seized under this Act is forfeited or returned, an 28
inspector or authorised officer must allow its owner to inspect it and, if it is 29
a document, to copy it. 30
s 772 463 s 773
Petroleum and Gas (Production and Safety) Bill 2004
(2) Subsection (1) does not apply if it is impracticable or would be 1
unreasonable to allow the inspection or copying. 2
772 Return of seized things 3
(1) If a thing seized under this Act has not been forfeited, an inspector or 4
authorised officer must return the thing to its owner-- 5
(a) at the end of 6 months; or 6
(b) if a proceeding for an offence involving the thing is started within 7
the 6 months--at the end of the proceeding and any appeal from 8
it; or 9
(c) if, within the 6 months, the inspector or authorised officer fixes a 10
later period for its return--at the end of the later period. 11
(2) The inspector or authorised officer may fix a later period only if the 12
inspector or authorised officer reasonably believes-- 13
(a) a proceeding for an offence involving the thing is likely to be 14
commenced; and 15
(b) retention of the thing for the period is necessary for evidence. 16
(3) If the inspector or authorised officer fixes a later period, the inspector 17
or authorised officer must, as soon as practicable after making the decision, 18
give the owner of the thing an information notice about the decision to fix 19
the period. 20
(4) Despite subsection (1), the inspector or authorised officer must return 21
the thing to the person immediately the inspector or authorised officer stops 22
being satisfied its retention as evidence is necessary. 23
Subdivision 4--Forfeiture 24
773 Forfeiture of seized things 25
(1) The chief executive or the chief inspector may decide to forfeit a 26
thing seized under this Act if the inspector or authorised officer 27
(the "seizing officer") who seized the thing-- 28
(a) can not find its owner, after making reasonable inquiries; or 29
(b) can not return it to its owner, after making reasonable efforts; or 30
s 773 464 s 773
Petroleum and Gas (Production and Safety) Bill 2004
(c) reasonably believes it is necessary to retain the thing to prevent it 1
being used to commit an offence against this Act; or 2
(d) reasonably considers it is dangerous to the extent that, to ensure 3
safety, it must be destroyed; or 4
(e) reasonably considers it has no intrinsic value and use. 5
(2) For subsection (1)-- 6
(a) the period over which the efforts or enquires are made must be at 7
least 5 business days; and 8
(b) the seizing officer is not required to-- 9
(i) make efforts if it would be unreasonable to make efforts to 10
return the thing to its owner; or 11
(ii) make inquiries if it would be unreasonable to make inquiries 12
to find the owner. 13
(3) If the chief executive or chief inspector decides under 14
subsection (1)(c), (d) or (e) to forfeit a thing, the former owner of the thing 15
immediately before the forfeiture must be given an information notice 16
about the decision. 17
(4) Subsection (3) does not apply if-- 18
(a) the seizing officer can not find the owner, after making 19
reasonable inquiries; or 20
(b) it is impracticable or would be unreasonable to give the 21
information notice. 22
(5) Regard must be had to a thing's nature, condition and value-- 23
(a) in deciding-- 24
(i) whether it is reasonable to make inquiries or efforts; and 25
(ii) if making inquiries or efforts, what inquiries or efforts, 26
including the period over which they are made, are 27
reasonable; or 28
(b) in deciding whether it would be unreasonable to give the 29
information notice. 30
s 774 465 s 776
Petroleum and Gas (Production and Safety) Bill 2004
774 Dealing with forfeited things 1
(1) On the forfeiture of a thing to the State, it becomes the State's 2
property.581 3
(2) The chief executive or chief inspector may deal with the thing for the 4
State in any way the chief executive or chief inspector considers 5
appropriate, including, for example by destroying it or giving it away. 6
(3) However, the chief executive or chief inspector must not deal with 7
the thing in a way that could prejudice the outcome of an appeal under this 8
Act of which the chief executive or chief inspector is aware. 9
Division 7--Notice of damage caused when exercising power 10
775 Application of div 7 11
(1) This division applies if-- 12
(a) an inspector or authorised officer damages something when 13
exercising, or purporting to exercise, a power; or 14
(b) a person helping an inspector or authorised officer to exercise, or 15
purporting to exercise, the inspector's or authorised officer's 16
powers damages something. 17
(2) However, this division does not apply to damage the inspector or 18
authorised officer reasonably considers is trivial or if the inspector or 19
officer reasonably believes-- 20
(a) there is no-one apparently in possession of the thing; or 21
(b) the thing has been abandoned. 22
776 Requirement to give notice 23
(1) The inspector or authorised officer must immediately give a notice of 24
the damage to the person who appears to the inspector or officer to be the 25
owner or person in possession or control of the thing. 26
(2) However, if for any reason it is not practicable to comply with 27
subsection (1), the inspector or officer must-- 28
581 See also section 841 (Additional orders that may be made on conviction).
s 777 466 s 778
Petroleum and Gas (Production and Safety) Bill 2004
(a) leave the notice at the place where the damage happened; and 1
(b) ensure it is left in a conspicuous position and in a reasonably 2
secure way. 3
(3) The inspector or officer may delay complying with subsection (1) 4
or (2) if the inspector or officer reasonably suspects complying with the 5
subsection may frustrate or otherwise hinder an investigation by the 6
inspector or officer. 7
(4) The delay may be only for so long as the inspector or officer 8
continues to have the reasonable suspicion and remains in the vicinity of 9
the place. 10
777 Content of notice 11
(1) A notice of damage under section 776 must state particulars of the 12
damage. 13
(2) If the inspector or authorised officer believes the damage was caused 14
by a latent defect in the thing or circumstances beyond the control of the 15
inspector or officer or a person helping the inspector or officer, the notice 16
may state that belief. 17
Division 8--Miscellaneous provisions 18
778 Compensation for damage because of exercise of powers 19
(1) A person may claim compensation from the State if the person incurs 20
a cost, damage or loss because of the exercise, or purported exercise, of a 21
power under this part by or for an inspector or authorised officer. 22
(2) Without limiting subsection (1), compensation may be claimed for a 23
cost, damage or loss incurred because of the compliance with a 24
requirement made of the person under this part. 25
(3) The compensation may be claimed and ordered in a proceeding-- 26
(a) brought in a court of competent jurisdiction; or 27
(b) for an offence against this Act to which the claim relates. 28
(4) A court may order the payment of compensation only if it is satisfied 29
it is just to make the order in the circumstances of the particular case. 30
s 779 467 s 780
Petroleum and Gas (Production and Safety) Bill 2004
(5) In considering whether it is just to order compensation, the court 1
must have regard to any relevant offence committed by the claimant. 2
(6) A regulation may prescribe other matters that may, or must, be taken 3
into account by the court when considering whether it is just to order 4
compensation. 5
779 Compliance with safety management plan 6
(1) An inspector or authorised officer who exercises a power under this 7
part in relation to an operating plant must comply with each relevant safety 8
requirement under the safety management plan for the plant. 9
(2) Subsection (1) does not apply if the power is exercised with the chief 10
inspector's written approval. 11
(3) A failure to comply with this subsection (1) does not invalidate or 12
otherwise affect the exercise of the power. 13
PART 2--DIRECTIONS AND ENFORCEMENT 14
Division 1--Direction to remedy contravention 15
780 Power to give compliance direction 16
(1) This section applies if an inspector or authorised officer reasonably 17
believes a person-- 18
(a) has contravened, or is contravening, this Act; or 19
(b) is involved in an activity that is likely to result in a contravention 20
of this Act. 21
(2) The inspector or authorised officer may give the person a written 22
direction (a "compliance direction") to take steps reasonably necessary to 23
remedy the contravention or avoid the likely contravention. 24
(3) The direction may also state-- 25
(a) the steps the inspector or authorised officer reasonably believes 26
are necessary to remedy the contravention or avoid the likely 27
contravention; or 28
s 781 468 s 782
Petroleum and Gas (Production and Safety) Bill 2004
(b) that an inspector or authorised officer proposes, at a stated time 1
or at stated intervals, to enter premises of which the person is the 2
occupier to check compliance with the direction. 3
781 Requirements for giving compliance direction 4
(1) A compliance direction must state each of the following-- 5
(a) that the inspector or authorised officer giving it believes the 6
person given the direction-- 7
(i) has contravened, or is contravening, this Act; or 8
(ii) is involved in an activity that is likely to result in a 9
contravention of this Act; 10
(b) the provision the inspector or authorised officer believes is being, 11
has been, or is likely to be, contravened; 12
(c) the reasons for the belief; 13
(d) that the person must take steps reasonably necessary to remedy 14
the contravention, or avoid the likely contravention, within a 15
stated reasonable period. 16
(2) The direction must include, or be accompanied by, an information 17
notice about the decisions to give the direction and to fix the period. 18
782 Failure to comply with compliance direction 19
(1) A person to whom a compliance direction has been given must 20
comply with the direction unless the person has a reasonable excuse. 21
Maximum penalty--300 penalty units. 22
(2) If the direction states steps the person may take to remedy the 23
contravention, or avoid the likely contravention, the subject of the 24
direction, the person is taken to have complied with the direction if all the 25
steps have been taken. 26
(3) Subsection (2) does not prevent the person from complying with the 27
direction in another way. 28
s 783 469 s 784
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Direction to remedy dangerous situation 1
783 Power to give dangerous situation direction 2
(1) This section applies if an inspector reasonably believes-- 3
(a) a dangerous situation exists; and 4
(b) a person is in a position to take steps to prevent, remove or 5
minimise the risk. 6
(2) The inspector may give the person a written direction (a "dangerous 7
situation direction") to take steps reasonably necessary to prevent, remove 8
or minimise the risk within a stated reasonable period. 9
(3) The direction may also state-- 10
(a) the steps the inspector reasonably believes are necessary to 11
prevent, remove or minimise the risk; or 12
(b) that an inspector or an authorised officer proposes, at a stated 13
time or at stated intervals, to enter premises of which the person 14
is the occupier to check compliance with the direction. 15
784 Requirements for giving dangerous situation direction 16
(1) A dangerous situation direction must state-- 17
(a) that the inspector giving the direction believes-- 18
(i) a stated dangerous situation exists; and 19
(ii) the person given the direction is in a position to take steps to 20
prevent, remove or minimise the risk; and 21
(b) the reasons for the belief; and 22
(c) that the person must take steps reasonably necessary to prevent, 23
remove or minimise the risk within a stated reasonable period. 24
(2) The direction must include, or be accompanied by, an information 25
notice about the decisions to give the direction and to fix the period. 26
(3) The direction may be given orally if-- 27
(a) for any reason it is not practicable to give the direction in writing; 28
and 29
(b) the inspector warns the person it is an offence not to comply with 30
the direction. 31
s 785 470 s 788
Petroleum and Gas (Production and Safety) Bill 2004
(4) If a dangerous situation direction is given orally, the inspector who 1
gave it must confirm the direction by also giving it in writing as soon as 2
practicable after giving it orally. 3
785 Failure to comply with dangerous situation direction 4
A person to whom a dangerous situation direction has been given must 5
comply with the direction. 6
Maximum penalty--400 penalty units. 7
Division 3--Enforcement of directions 8
786 Re-inspection or re-attendance to check compliance 9
(1) If a compliance or dangerous situation direction has been given, an 10
inspector or authorised officer may, if the inspector or officer considers it 11
reasonably necessary, carry out a re-inspection or re-attendance to check 12
compliance with the direction. 13
(2) The re-inspection or re-attendance must be carried out at a reasonable 14
time. 15
787 Action to ensure compliance 16
If a person to whom a compliance or dangerous situation direction has 17
been given does not comply with the direction, an inspector or authorised 18
officer may take necessary and reasonable action to ensure the direction is 19
complied with. 20
788 Recovery of enforcement costs 21
(1) The State may recover from the responsible person as a debt any 22
reasonable costs incurred in-- 23
(a) carrying out a re-attendance under section 786; or 24
(b) taking action under section 787. 25
(2) In this section-- 26
"responsible person" means the person to whom the relevant direction 27
was given. 28
s 789 471 s 790
Petroleum and Gas (Production and Safety) Bill 2004
Division 4--Noncompliance procedure for all authorities under Act 1
Subdivision 1--Introduction 2
789 Operation of div 4 3
(1) This division provides a process for noncompliance action against 4
the holder of any authority under this Act mentioned in section 18.582 5
(2) The "relevant official" for taking the action is-- 6
(a) for a petroleum authority--the Minister; or 7
(b) for a gas work licence or authorisation--the chief inspector. 8
(3) The power to take noncompliance action under this division does not 9
limit a power as follows (the "other power")-- 10
(a) the power under chapter 5, part 1 to require new or additional 11
security; 12
(b) a power under another provision of this Act to amend the 13
authority; 14
(c) the power to give a dangerous situation or compliance direction. 15
(4) The other power does not limit the power to take noncompliance 16
action. 17
(5) Noncompliance action may be taken at the same time as the other 18
power is exercised. 19
Subdivision 2--Noncompliance action 20
790 Types of noncompliance action that may be taken 21
(1) The noncompliance action the relevant official may take under this 22
division is all or any of the following-- 23
(a) amending the authority by doing all or any of the following-- 24
(i) reducing the term of the authority; 25
(ii) for a petroleum authority--reducing its area; 26
582 Section 18 (Types of authority under Act)
s 790 472 s 790
Petroleum and Gas (Production and Safety) Bill 2004
1
Example of a possible reduction--
An authority to prospect holder has not, in contravention of
section 78,583 carried out work required under the work program for the 2
3
authority. Noncompliance action may include amending the authority to
5
4
reduce its area to reflect the work not carried out.
(iii) amending a condition of the authority; 6
(iv) imposing a new condition; 7
(b) requiring (a "relinquishment requirement") the authority 8
holder to relinquish a stated part of the area of the authority on or 9
before a stated time; 10
(c) cancelling the authority, immediately or on a stated day; 11
(d) if the authority is a gas work licence or 12
authorisation--suspending it for a period, either under 13
subdivision 3 or by a notice under subdivision 4; 14
(e) if the authority is a petroleum tenure-- 15
(i) withdrawing, from a stated day,584 the approval of its work 16
program or development plan; and 17
(ii) directing its holder to, on or before that day, lodge the 18
following program or plan at the relevant office so that the 19
Minister may decide whether to approve the program or 20
plan-- 21
(A) for an authority to prospect--a proposed later work 22
program that complies with the later work program 23
requirements; 24
(B) for a petroleum lease--a proposed later development 25
plan that complies with the later development plan 26
requirements; 27
(f) requiring the authority holder to pay the State a penalty of an 28
amount no more than the monetary value of 1 000 penalty units. 29
(2) However, a requirement under subsection (1)(f)-- 30
(a) can not be made in relation to a failure to comply with a 31
relinquishment condition for a petroleum tenure; and 32
583 Section 78 (Compliance with exploration activities in work program)
584 See section 796 (Notice of proposed noncompliance action other than immediate
suspension).
s 791 473 s 791
Petroleum and Gas (Production and Safety) Bill 2004
(b) may be made only if the holder has agreed to the requirement 1
being made instead of the taking other noncompliance action 2
under subsection (1). 3
(3) A condition or amendment under subsection (1) may restrict the 4
authorised activities for the authority. 5
(4) To remove any doubt, it is declared that if the noncompliance action 6
is taken because of a failure to comply with a relinquishment condition, a 7
relinquishment requirement may be made for any part of the area of the 8
authority, even though that part is not the same as, or is more than, the part 9
required to be relinquished under the condition. 10
(5) If the holder does not comply with a relinquishment requirement, the 11
relevant official may cancel the authority. 12
(6) If, under subsection (1)(c), the authority is cancelled on a stated day, 13
a condition may be imposed under subsection (1)(a) restricting the 14
authorised activities for the authority until the cancellation. 15
(7) Noncompliance action may be taken despite the mandatory 16
conditions for the authority. 17
(8) The power under subsection (1) to amend a gas work licence or 18
authorisation may be exercised even if it is suspended. 19
(9) In this section-- 20
"relevant office" means-- 21
(a) the office of the department for lodging proposed later work 22
programs or proposed later development plans, as stated in a 23
gazette notice by the chief executive; or 24
(b) if no office is gazetted under paragraph (a)--the office of the 25
chief executive. 26
791 When noncompliance action may be taken 27
(1) Noncompliance action may be taken if-- 28
(a) an event mentioned in subsection (2) or (3) has happened; and 29
(b) the procedure under subdivision 3 or 4 for taking the action has 30
been followed. 31
(2) For subsection (1), the event is that the holder-- 32
s 792 474 s 792
Petroleum and Gas (Production and Safety) Bill 2004
(a) obtained the authority because of a materially false or misleading 1
representation or declaration, made orally or in writing; or 2
(b) has failed to comply with this Act, a direction given under this 3
Act or the authority; or 4
(c) did not pay an amount under this Act by the day it became 5
owing; or 6
(d) has used any land in the area of the authority for an activity 7
that-- 8
(i) is not an authorised activity for the authority or that, under 9
the Geothermal Exploration Act 2004, section 7585 or the 10
Mineral Resources Act, section 3A,586 can not be carried out 11
on the land; and 12
(ii) the holder can not otherwise lawfully carry out; or 13
(e) has used the authority for a purpose other than for a purpose for 14
which it was granted; or 15
(f) has carried out, or purported to carry out, work under the 16
authority for which the authority was not granted. 17
(3) Also, if the authority is a petroleum authority, it is an event for 18
subsection (1) if the holder is not, or has ceased to be, an eligible person. 19
792 Provision for divided petroleum tenures 20
(1) If, under chapter 2, a petroleum tenure (the "original tenure") is 21
divided into other petroleum tenures (the "new tenures"), any 22
noncompliance action started, or that could have been taken, against the 23
original tenure holder may be continued or started against any holder of 24
any of the new tenures. 25
(2) However, the procedure under subdivision 3 or 4 for taking the 26
noncompliance action must be followed. 27
585 Geothermal Exploration Act 2004, section 7 (Relationship with Petroleum
legislation)
586 Mineral Resources Act, section 3A (Relationship with petroleum legislation)
s 793 475 s 794
Petroleum and Gas (Production and Safety) Bill 2004
Subdivision 3--Procedure for immediate suspension of gas work licence 1
or authorisation 2
793 Application of sdiv 3 3
This subdivision applies only if the authority is a gas work licence or gas 4
work authorisation. 5
794 Immediate suspension 6
(1) The chief inspector may, by a notice (a "suspension notice") to the 7
holder, immediately suspend the authority if the chief inspector reasonably 8
believes-- 9
(a) a ground exists to suspend or cancel the authority; and 10
(b) it is imperative to immediately suspend the authority to control or 11
prevent a danger to the public. 12
(2) The suspension notice must-- 13
(a) state each of the following-- 14
(i) that the authority is suspended immediately; 15
(ii) the grounds for the suspension; 16
(iii) the facts and circumstances forming the basis for the 17
grounds; 18
(iv) the suspension period; 19
(v) that the holder may lodge submissions, to show why the 20
suspension should end, at-- 21
(A) the office of the department for lodging the 22
submissions, as stated in a gazette notice by the chief 23
inspector; or 24
(B) if no office is gazetted under subsubparagraph (A) 25
--the office of the chief inspector; and 26
(b) include, or be accompanied by, a notice about the decisions to 27
give the notice and to fix the suspension period. 28
(3) The suspension period must not be more than 40 business days. 29
s 795 476 s 796
Petroleum and Gas (Production and Safety) Bill 2004
(4) The suspension has effect immediately after the holder is given the 1
suspension notice. 2
(5) The authority is ineffective during the suspension period. 3
Subdivision 4--Procedure for other noncompliance action 4
795 Application of sdiv 4 5
This section applies if the relevant official proposes to take 6
noncompliance action, other than immediate suspension under section 794. 7
796 Notice of proposed noncompliance action other than immediate 8
suspension 9
(1) The relevant official must give the authority holder a notice stating 10
each of the following-- 11
(a) that the relevant official proposes to take noncompliance action 12
against the holder; 13
(b) the types of noncompliance action that may be taken against the 14
holder and the type likely to be taken; 15
(c) the grounds for taking noncompliance action against the holder; 16
(d) the facts and circumstances that are the basis for the grounds; 17
(e) that the holder may, within a stated period, lodge submissions 18
about the proposal to take noncompliance action at-- 19
(i) the office of the department for lodging the submissions, as 20
stated in a gazette notice by the relevant official; or 21
(ii) if no office is gazetted under subparagraph (i)--the office of 22
the relevant official. 23
(2) The notice may state any of the following-- 24
(a) if the noncompliance action is likely to include amending the 25
authority--the likely amendment; 26
(b) if the authority is a petroleum authority--the amount of any 27
likely reduction of the area of the authority; 28
(c) if the proposed noncompliance action is to suspend the 29
authority--the likely suspension period. 30
s 797 477 s 799
Petroleum and Gas (Production and Safety) Bill 2004
(3) A suspension period may be fixed by reference to a stated event. 1
(4) The stated period must be at least 20 business days after the holder is 2
given the notice. 3
797 Considering submissions 4
(1) The relevant official must consider any submissions lodged by the 5
holder, during the period stated in the notice given under section 796. 6
(2) If the relevant official decides not to take noncompliance action the 7
relevant official must promptly give the holder a notice of the decision. 8
798 Decision on proposed noncompliance action 9
(1) If, after complying with section 797, the relevant official still believes 10
a ground exists to take noncompliance action, the official may decide to 11
take noncompliance action in relation to the authority that relates to a 12
ground stated in the notice given under section 796. 13
(2) If the proposed noncompliance action does not relate to a failure to 14
comply with a relinquishment condition for a petroleum tenure, the 15
relevant official must, in deciding whether to take the action, have regard to 16
whether the holder is a suitable person to hold, or continue to hold, the 17
authority. 18
(3) In considering whether the holder is a suitable person to hold, or to 19
continue to hold, the authority the relevant official must consider any 20
criteria that apply in deciding whether to grant an authority of the same 21
type. 22
799 Notice and taking effect of decision 23
(1) If the relevant official makes a decision under section 798, the person 24
must after making the decision give an information notice about the 25
decision to-- 26
(a) the holder; and 27
(b) for a petroleum authority--any other person who holds an 28
interest in the authority recorded in the petroleum register. 29
(2) Generally, the decision takes effect on the later of the following-- 30
(a) the day the holder is given the information notice; 31
s 799 478 s 799
Petroleum and Gas (Production and Safety) Bill 2004
(b) a later day of effect stated in the notice. 1
(3) However, if the decision was to cancel or suspend the authority, the 2
decision does not take effect until the end of the appeal period for the 3
decision.587 4
587 Section 824 (Period to appeal)
See also section 826 (Stay of operation of decision).
s 800 479 s 800
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 11--GENERAL OFFENCES 1
PART 1--RESTRICTIONS RELATING TO PETROLEUM 2
ACTIVITIES 3
800 Restriction on petroleum tenure activities 4
(1) A person must not carry out a petroleum tenure activity in relation to 5
land unless-- 6
(a) the activity is carried out under this Act and under the authority 7
of a petroleum tenure; or 8
(b) the carrying out of the activity is necessary to preserve life or 9
property because of a dangerous situation or emergency that 10
exists or may exist. 11
Maximum penalty--2 000 penalty units. 12
(2) However, subsection (1) does not apply if-- 13
(a) the activity is the exploration for coal seam gas under a coal or 14
oil shale mining tenement; or 15
(b) the land is also in the area of a coal or oil shale mining lease and 16
the activity is coal seam gas mining; or 17
(c) the activity is an activity mentioned in section 32(2) or 109(2) 18
carried out under a coal or oil shale mining lease.588 19
(3) In this section-- 20
"petroleum tenure activity" means to-- 21
(a) explore for or produce petroleum; or 22
(b) test, develop or use a natural underground reservoir for 23
petroleum storage; or 24
(c) carry out an activity necessary for, or incidental to, an activity 25
mentioned in paragraph (a) or (b). 26
588 Section 32 (Exploration and testing) or 109 (Exploration, production and storage
activities)
See however the Gas Supply Act 2003, section 257A (Exemption from Petroleum
and Gas (Production and Safety) Act, ss 800, 802 and 803 for person complying
with direction).
s 801 480 s 801
Petroleum and Gas (Production and Safety) Bill 2004
801 Petroleum producer's measurement obligations 1
(1) A petroleum producer must ensure-- 2
(a) each product mentioned in subsection (2) is measured by a meter, 3
in accordance with the relevant measurement scheme for the 4
meter;589 and 5
(b) the meter complies with any requirements prescribed under a 6
regulation; and 7
(c) the measurement is made at the times and in the way prescribed 8
under a regulation. 9
Maximum penalty--500 penalty units. 10
(2) For subsection (1)(a), the products are the following-- 11
(a) petroleum the producer produces; 12
(b) any of the petroleum produced that is used to produce the 13
petroleum produced; 14
(c) any of the petroleum produced that is flared or vented by or for 15
the producer; 16
(d) any of the petroleum produced that the producer, or someone else 17
for the producer, injects into a natural underground reservoir in 18
the State; 19
(e) any of the petroleum produced the property in which passes from 20
the producer; 21
(f) associated water; 22
(g) any of the petroleum produced that passes through another stage 23
in its production or processing that the Minister gives a notice to 24
the producer is a stage at which the petroleum is to be measured. 25
(3) For applying subsections (1) and (2)(f), water is taken to be 26
petroleum. 27
(4) If there is any inconsistency between the measurement scheme and a 28
regulation made under subsection (1), the regulation prevails to the extent 29
of the inconsistency. 30
589 For what is a meter, see section 631 (What is a "meter"). For measurement schemes,
see chapter 8, part 2 (Measurement schemes).
s 802 481 s 803
Petroleum and Gas (Production and Safety) Bill 2004
802 Restriction on pipeline construction or operation 1
(1) A person must not construct or operate a pipeline, other than a 2
distribution pipeline, unless-- 3
(a) the construction or operation is-- 4
(i) carried out under this Act and under the authority of a 5
petroleum authority;590 or 6
(ii) necessary to preserve life or property because of a 7
dangerous situation or emergency that exists or may exist; 8
or 9
(b) the pipeline is completely within a parcel of land, or contiguous 10
parcels of land, owned by the person; or 11
(c) the operation of the pipeline consists of-- 12
(i) the transportation, within the area of a coal or oil shale 13
mining lease, of coal seam gas mined in the area of the 14
mining lease, under the Mineral Resources Act, 15
section 318CM;591 or 16
(ii) the transportation, within the area of a mining lease, of a 17
gasification or retorting product produced under the lease.592 18
Maximum penalty--2 000 penalty units. 19
(2) In this section-- 20
"produced" includes extracted, mined or released. 21
803 Restriction on petroleum facility construction or operation 22
A person must not construct or operate a petroleum facility unless the 23
construction or operation is-- 24
(a) carried out under this Act and under the authority of a petroleum 25
authority; or 26
590 See sections 33 (Incidental activities) and 110 (Petroleum pipeline and water
pipeline construction and operation)
591 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)
592 See however the Gas Supply Act 2003, section 257A (Exemption from Petroleum
and Gas (Production and Safety) Act, ss 800, 802 and 803 for person complying
with direction).
s 804 482 s 805
Petroleum and Gas (Production and Safety) Bill 2004
(b) necessary to preserve life or property because of a dangerous 1
situation or emergency that exists or may exist.593 2
Maximum penalty--2 000 penalty units. 3
804 Duty to avoid interference in carrying out authorised activities 4
A person who carries out an authorised activity for a petroleum authority 5
must carry out the activity in a way that does not unreasonably interfere 6
with anyone else carrying out a lawful activity in the area of the authority. 7
Maximum penalty--100 penalty units. 8
PART 2--INTERFERENCE WITH AUTHORISED 9
ACTIVITIES 10
805 Obstruction of petroleum authority holder 11
(1) A person must not, without reasonable excuse, obstruct a petroleum 12
authority holder from-- 13
(a) entering or crossing land to carry out an authorised activity for 14
the petroleum authority if chapter 5, part 2 or 3 has been 15
complied with in relation to the entry;594 or 16
(b) carrying out an authorised activity for the petroleum authority on 17
the land. 18
Maximum penalty--100 penalty units. 19
(2) If a person has obstructed a petroleum authority holder from carrying 20
out an activity mentioned in subsection (1) and the holder decides to 21
proceed with the carrying out of the activity, the holder must warn the 22
person that-- 23
593 See however section 876 (Deferred application of s 803 for existing petroleum
facilities) and the Gas Supply Act 2003, section 257A (Exemption from Petroleum
and Gas (Production and Safety) Act, ss 800, 802 and 803 for person complying
with direction).
594 Chapter 5, part 2 (Private land) or 3 (Public land)
s 806 483 s 808
Petroleum and Gas (Production and Safety) Bill 2004
(a) it is an offence to obstruct the holder unless the person has a 1
reasonable excuse; and 2
(b) the holder considers the person's conduct is an obstruction. 3
(3) In this section-- 4
"obstruct" includes assault, hinder, resist and attempt or threaten to 5
assault, hinder, resist. 6
806 Interfering with water observation bore 7
(1) A person must not interfere with a water observation bore unless the 8
person is the owner of the bore or the owner of the bore consents.595 9
Maximum penalty--1 000 penalty units. 10
(2) In this section-- 11
"owner", of the bore, means the person who, under section 542, owns the 12
works constructed in connection with the bore. 13
807 Restriction on building on pipeline land 14
(1) This section applies if land is pipeline land for 1 or more pipeline 15
licences. 16
(2) A person, other than a holder of any of the licences, must not 17
construct or place a structure on the land unless all the pipeline licence 18
holders consent. 19
Maximum penalty--100 penalty units. 20
808 Restriction on changing surface of pipeline land 21
A person must not change the surface of pipeline land in a way that 22
changes, or may cause a change to, the depth of burial of a pipeline 23
unless-- 24
(a) the pipeline licence holder consents; or 25
(b) the change is necessary to preserve life or property because of a 26
dangerous situation or emergency that exists or may exist; or 27
595 For ownership of water observation bores, see section 542 (Ownership of equipment
and improvements).
s 809 484 s 811
Petroleum and Gas (Production and Safety) Bill 2004
(c) the change is a change to a public road by or for its public road 1
authority and the authority has complied with section 427596 in 2
relation to the change; or 3
(d) the person has a reasonable excuse. 4
Maximum penalty--100 penalty units. 5
809 Unlawful taking of petroleum or fuel gas prohibited 6
A person must not unlawfully take petroleum or fuel gas from-- 7
(a) a pipeline the subject of a pipeline licence; or 8
(b) a petroleum pipeline, as defined under section 110, operated
597
9
under that section by a petroleum lease holder; or 10
(c) a gas fitting as defined under section 733.598 11
Maximum penalty--500 penalty units. 12
810 Restriction on building on petroleum facility land 13
A person must not construct or place a structure on petroleum facility 14
land for a petroleum facility licence unless the petroleum facility licence 15
holder consents. 16
Maximum penalty--100 penalty units. 17
PART 3--OTHER OFFENCES 18
811 Obstruction of inspector or authorised officer 19
(1) A person must not, without reasonable excuse, obstruct an inspector 20
or authorised officer exercising a power under this Act. 21
Maximum penalty--300 penalty units. 22
596 Section 427 (Requirement to consult if construction affects existing pipeline)
597 Section 110 (Petroleum pipeline and water pipeline construction and operation)
598 Section 733 (Certification of gas device or gas fitting)
s 812 485 s 814
Petroleum and Gas (Production and Safety) Bill 2004
(2) If the inspector or authorised officer considers a person has 1
obstructed the inspector or authorised officer and the inspector or 2
authorised officer decides to proceed with the exercise of the power, the 3
inspector or authorised officer must warn the person that-- 4
(a) it is an offence to obstruct the inspector or authorised officer 5
unless the person has a reasonable excuse; and 6
(b) the inspector or authorised officer considers the person's conduct 7
is an obstruction. 8
(3) In this section-- 9
"obstruct" includes assault, hinder, resist and attempt or threaten to 10
assault, hinder, resist. 11
812 Pretending to be inspector or authorised officer 12
A person must not pretend to be an inspector or authorised officer. 13
Maximum penalty--250 penalty units. 14
813 False or misleading information 15
(1) A person must not make an entry in a document required to be kept 16
under this Act knowing the entry is false or misleading in a material 17
particular. 18
Maximum penalty--200 penalty units. 19
(2) A person of whom a direction or requirement under this Act has been 20
made must not state anything or give a document or thing in response to the 21
direction or requirement that the person knows is false or misleading in a 22
material particular. 23
Maximum penalty--200 penalty units. 24
814 Executive officers must ensure corporation complies with Act 25
(1) The executive officers of a corporation must ensure the corporation 26
complies with this Act. 27
(2) If a corporation commits an offence against a provision of this Act, 28
each of its executive officers also commits an offence, namely, the offence 29
of failing to ensure the corporation complies with the provision. 30
s 815 486 s 816
Petroleum and Gas (Production and Safety) Bill 2004
Maximum penalty--the penalty for the contravention of the provision by 1
an individual. 2
(3) Evidence that the corporation has been convicted of an offence 3
against a provision of this Act is evidence that each of its executive officers 4
committed the offence of failing to ensure the corporation complies with 5
the provision. 6
(4) However, it is a defence for an executive officer to prove that-- 7
(a) if the officer was in a position to influence the conduct of the 8
corporation in relation to the offence--the officer exercised 9
reasonable diligence to ensure the corporation complied with the 10
provision; or 11
(b) the officer was not in a position to influence the conduct of the 12
corporation in relation to the offence. 13
815 Fuel gas suppliers must not use other supplier's containers 14
(1) This section applies for a container with a water capacity of more 15
than 25 kg that is the property of a fuel gas supplier (the "owner"). 16
(2) Another fuel gas supplier must not supply LPG in the container 17
without the owner's permission. 18
Maximum penalty--100 penalty units. 19
(3) This section expires 3 years after it commences. 20
816 Attempts to commit offences 21
(1) A person who attempts to commit an offence against this Act 22
commits an offence. 23
Maximum penalty for an attempt--half the maximum penalty for the 24
completed offence. 25
(2) The Criminal Code, section 4599 applies to subsection (1). 26
599 The Criminal Code, section 4 (Attempts to commit offences)
s 817 487 s 818
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 12--REVIEWS AND APPEALS 1
PART 1--REVIEW OF DECISIONS 2
817 Who may apply for review 3
(1) A person who has been given, or is entitled to be given, an 4
information notice about a decision under this Act mentioned in schedule 1, 5
table 1 (an "original decision") may apply for a review of the decision 6
(a "review application"). 7
(2) A review application may be made only to-- 8
(a) if the original decision to which the application relates was made 9
by the chief executive--the Minister; or 10
(b) if the original decision to which the application relates was made 11
by an inspector--the chief inspector; or 12
(c) otherwise--the chief executive.600 13
(3) The person to whom the review application may be made is the 14
"reviewer". 15
818 Requirements for making application 16
A review application-- 17
(a) can only be made within 20 business days after-- 18
(i) if the person has been given an information notice about the 19
original decision to which the application relates--the day 20
the person is given the notice; or 21
(ii) if subparagraph (i) does not apply--the day the person 22
otherwise becomes aware of the original decision; and 23
(b) must be-- 24
(i) in the approved form; and 25
(ii) accompanied by a statement of the grounds on which the 26
applicant seeks the review of the decision; and 27
600 For restrictions on who may conduct the review, see section 821(1) (Review
procedure).
s 819 488 s 820
Petroleum and Gas (Production and Safety) Bill 2004
(iii) supported by enough information to enable the decision to 1
be reviewed; and 2
(c) must be lodged at-- 3
(i) the office of the department for lodging review applications, 4
as stated in a gazette notice by the chief executive; or 5
(ii) if no office is gazetted under subparagraph (i)--the office 6
stated in the approved form; or 7
(iii) otherwise--the office of the chief executive. 8
819 Stay of operation of original decision 9
(1) The reviewer may grant a stay of the original decision to secure the 10
effectiveness of the review. 11
(2) A stay-- 12
(a) may be given on the conditions the reviewer considers 13
appropriate; and 14
(b) operates for the period fixed by the reviewer; and 15
(c) may be amended or cancelled by the reviewer. 16
(3) The period of a stay under this section must not extend past the time 17
when the reviewer decides the review. 18
(4) The review affects the decision, or carrying out of the decision, only 19
if it is stayed. 20
820 Review decision 21
(1) The reviewer must, within 20 business days after the review 22
application is made (the "required period")-- 23
(a) review the original decision; and 24
(b) make a decision (the "review decision") to-- 25
(i) confirm the original decision; or 26
(ii) amend the original decision; or 27
(iii) substitute another decision for the original decision. 28
s 821 489 s 822
Petroleum and Gas (Production and Safety) Bill 2004
(2) If the reviewer does not make the review decision within the required 1
period, the reviewer is taken to have made that decision and to have 2
decided to confirm the original decision. 3
(3) If the review decision confirms the original decision, for the purpose 4
of an appeal, the original decision is taken to be the review decision. 5
(4) If the review decision amends the original decision, for the purpose 6
of an appeal, the original decision as amended is taken to be the review 7
decision. 8
821 Review procedure 9
(1) Despite any other provision of this Act or the Acts Interpretation Act 10
1954, section 27A,601 the reviewer's powers to review the original can not
be delegated to-- 12
11
(a) a person who made the original decision under a delegation; or 13
(b) if this Act required the decision to be made by a person with 14
particular qualifications or competencies--a person without at 15
least the same or equivalent qualifications or competencies. 16
(2) The reviewer may, in making the review decision, seek and take into 17
account advice or information from anyone, including, for example, a 18
review panel established by the reviewer. 19
822 Notice of review decision 20
(1) The reviewer must, within 5 business days after making a review 21
decision, give the applicant notice (a "review notice") of the decision. 22
(2) If the review decision is not the decision sought by the applicant, the 23
review notice must also include, or be accompanied by, an information 24
notice about the decision. 25
(3) If the reviewer does not give the review notice within the 5 business 26
days, the reviewer is taken to have made a review decision confirming the 27
original decision. 28
601 Acts Interpretation Act 1954, section 27A (Delegation of powers)
s 823 490 s 824
Petroleum and Gas (Production and Safety) Bill 2004
PART 2--APPEALS 1
823 Who may appeal 2
(1) A person whose interests are affected by a review decision may 3
appeal against the decision to-- 4
(a) if the original decision to which the review decision relates was 5
made under chapter 9--the industrial court; or 6
(b) if the original decision to which the review decision relates was a 7
refusal to give public land authority approval--the tribunal; or 8
(c) otherwise--the District Court. 9
(2) The court or tribunal to where the person may appeal is the "appeal 10
body". 11
(3) A person whose interests are affected by a decision identified in 12
schedule 1, table 2, may appeal against the decision to the court or tribunal 13
(also the "appeal body") that the schedule states for the decision. 14
(4) For this section, a person who has been given, or is entitled to be 15
given, an information notice about a decision is taken to be a person whose 16
interests are affected by the decision. 17
824 Period to appeal 18
(1) The appeal must be started within 20 business days after-- 19
(a) for an appeal from a review decision-- 20
(i) if the person has been given a review notice about the 21
review decision to which the appeal relates--the day the 22
person is given the notice; or 23
(ii) if subparagraph (i) does not apply--the day the person 24
otherwise becomes aware of the review decision; or 25
(b) for an appeal from another decision-- 26
(i) if the person has been given an information notice about the 27
decision--the day the person is given the notice; or 28
(ii) if subparagraph (i) does not apply--the day the person 29
otherwise becomes aware of the decision. 30
s 825 491 s 827
Petroleum and Gas (Production and Safety) Bill 2004
(2) However, the appeal body may, at any time within the 20 business 1
days, extend the period for making an appeal. 2
825 Starting appeal 3
(1) The appeal is started by filing a written notice of appeal with the 4
appeal body. 5
(2) A copy of the notice must be lodged at-- 6
(a) the office of the department for lodging notices of appeal, as 7
stated in a gazette notice by the chief executive; or 8
(b) if no office is gazetted under paragraph (a)--the office of the 9
chief executive. 10
(3) An appeal to the District Court or industrial court may be made to the 11
District Court or industrial court nearest the place where the applicant 12
resides or carries on business. 13
(4) Subsection (3) does not limit the court at which the appeal may be 14
started under the Uniform Civil Procedure Rules 1999 or the Industrial 15
Relations Act 1999. 16
826 Stay of operation of decision 17
(1) The appeal body may grant a stay of the decision to secure the 18
effectiveness of the appeal. 19
(2) A stay-- 20
(a) may be given on the conditions the appeal body considers 21
appropriate; and 22
(b) operates for the period fixed by the appeal body; and 23
(c) may be amended or cancelled by the appeal body. 24
(3) The period of a stay under this section must not extend past the time 25
when the appeal body decides the appeal. 26
(4) The appeal affects the decision, or carrying out of the decision, only 27
if it is stayed. 28
827 Hearing procedures 29
(1) In deciding an appeal, the appeal body-- 30
s 828 492 s 829
Petroleum and Gas (Production and Safety) Bill 2004
(a) has the same powers as the original decider; and 1
(b) is not bound by the rules of evidence; and 2
(c) must comply with natural justice; and 3
(d) may hear the appeal in court or in chambers. 4
(2) An appeal is by way of rehearing, unaffected by the decision. 5
(3) Subject to subsections (1) and (2), the procedure for the appeal is-- 6
(a) in accordance with the rules for the appeal body; or 7
(b) in the absence of relevant rules, as directed by the appeal body. 8
(4) A power under an Act to make rules for the appeal body includes 9
power to make rules for appeals under this part. 10
828 Appeal body's powers on appeal 11
(1) Subject to section 829, in deciding an appeal, the appeal body may-- 12
(a) confirm the decision; or 13
(b) set aside the decision and substitute another decision; or 14
(c) set aside the decision and return the issue to the original decider 15
with the directions the appeal body considers appropriate. 16
(2) If the appeal body substitutes another decision, the substituted 17
decision is, for this Act, other than this chapter, taken to be the decision of 18
the original decider. 19
829 Restriction on tribunal's powers for decision not to grant 20
petroleum lease 21
(1) This section applies if the tribunal is deciding an appeal against a 22
decision under section 120602 not to grant a petroleum lease. 23
(2) The tribunal can not exercise a power mentioned in section 828(1)(b) 24
or (c) in relation to the decision on the ground that the preference decision 25
for the application for the lease was to give any coal or oil shale 26
development preference, in whole or part. 27
602 Section 120 (Right to grant if requirements for grant met)
s 830 493 s 830
Petroleum and Gas (Production and Safety) Bill 2004
830 Appeals from appeal body's decision 1
(1) An appeal to the Court of Appeal from a decision of the District 2
Court under this part may be made only on a question of law. 3
(2) An appeal to the District Court from a decision of the industrial court 4
under this part may be made only on a question of law.603 5
603 For appeals from the tribunal, see the Land and Resources Tribunal Act 1999,
section 67 (Appeal only on question of law). For the industrial court, see the
Industrial Relations Act 1999, section 342 (Appeal from commission, magistrate or
registrar).
s 831 494 s 834
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 13--EVIDENCE AND LEGAL 1
PROCEEDINGS 2
PART 1--EVIDENTIARY PROVISIONS 3
831 Application of pt 1 4
This part applies to a proceeding under or in relation to this Act. 5
832 Appointments and authority 6
The following must be presumed unless a party to the proceeding, by 7
reasonable notice, requires proof of it-- 8
(a) the appointment of an inspector or authorised officer; 9
(b) the power of an official to do anything under this Act. 10
833 Signatures 11
A signature purporting to be the signature of an official is evidence of the 12
signature it purports to be. 13
834 Other evidentiary aids 14
A certificate purporting to be signed by the chief executive stating any of 15
the following matters is evidence of the matter-- 16
(a) a stated document, of any of the following types, is a document 17
given, issued, kept or made under this Act-- 18
(i) an appointment, approval or decision; 19
(ii) a direction, notice or requirement; 20
(iii) a petroleum authority or a gas work licence or authorisation; 21
(iv) the petroleum register; 22
(v) the register the chief inspector keeps under section 730;604 23
(vi) a safety management plan for an operating plant; 24
604 Section 730 (Register of gas work licences and authorisations)
s 835 495 s 836
Petroleum and Gas (Production and Safety) Bill 2004
(vii) a report; 1
(viii)another record; 2
(b) a stated document is another document kept under this Act; 3
(c) a stated document is a copy of, or an extract from or part of, a 4
thing mentioned in paragraph (a) or (b); 5
(d) on a stated day-- 6
(i) a stated person was given a stated decision, direction or 7
notice under this Act; or 8
(ii) a stated requirement under this Act was made of a stated 9
person; 10
(e) on a stated day, or during a stated period, a petroleum authority 11
or a gas work licence or authorisation-- 12
(i) was, or was not, in force; or 13
(ii) was, or was not, subject to a stated condition; or 14
(iii) was, or was not, cancelled or suspended; 15
(f) a stated amount is payable under this Act by a stated person and 16
has not been paid; 17
(g) a stated address for the holder of a petroleum authority or gas 18
work licence or authorisation is the last address of the holder 19
known to any official. 20
835 Proof of requirement for land 21
A certificate by the Minister that stated land taken under
section 456(2)605 was required by the State or another stated person for a 22
purpose mentioned in section 456(2) is evidence that the taking was for that 23
purpose. 24
836 Safety management plans 25
If it is relevant to establish what was the safety management plan for an 26
operating plant at a particular time, the copy of the plan that, under 27
605 Section 456 (State's power to take land)
s 837 496 s 838
Petroleum and Gas (Production and Safety) Bill 2004
section 676(1)(a),606 was kept at the plant at that time is taken to be the 1
original of the plan. 2
PART 2--OFFENCE PROCEEDINGS 3
837 Offences under Act are summary 4
(1) An offence against this Act is a summary offence. 5
(2) A proceeding for an offence against a provision of chapter 9, part 2, 4 6
or 6607-- 7
(a) must be brought before an industrial magistrate; and 8
(b) can be started only by complaint of the chief inspector or 9
someone else authorised by the Minister. 10
(3) The Industrial Relations Act 1999 applies to a proceeding mentioned 11
in subsection (2).608 12
(4) A proceeding for an offence against this Act must start within the 13
later of the following periods to end-- 14
(a) 1 year after the commission of the offence; 15
(b) 6 months after the offence comes to the complainant's 16
knowledge, but within 2 years after the commission of the 17
offence. 18
838 Statement of complainant's knowledge 19
In a complaint starting a proceeding for an offence against this Act, a 20
statement that the matter of the complaint came to the complainant's 21
knowledge on a stated day is evidence the matter came to the complainant's 22
knowledge on that day. 23
606 Section 676 (Publication of and access to safety management plan)
607 Chapter 9, parts 2 (Safety management plans), 4 (Other safety obligations)
or 6 (Restrictions on gas work)
608 For appeals from the industrial magistrate's decision, see the Industrial Relations
Act 1999, section 341 (Appeal from commission, magistrate or registrar).
s 839 497 s 840
Petroleum and Gas (Production and Safety) Bill 2004
839 Allegations of false or misleading matters 1
(1) This section applies to a proceeding for an offence against this Act 2
described as involving-- 3
(a) false or misleading information; or 4
(b) a false or misleading document or statement. 5
(2) It is enough for the complaint starting the proceeding to state the 6
document, information or statement was `false or misleading' to the 7
defendant's knowledge, without specifying which. 8
(3) In the proceeding, evidence that the document, information or 9
statement was given or made recklessly is evidence that it was given or 10
made so as to be false or misleading. 11
840 Conduct of representatives 12
(1) This section applies to a proceeding for an offence against this Act if 13
it is relevant to prove a person's state of mind about particular conduct. 14
(2) It is enough to show-- 15
(a) the conduct was engaged in by a representative of the person 16
within the scope of the representative's actual or apparent 17
authority; and 18
(b) the representative had the state of mind. 19
(3) Conduct engaged in for a person by a representative of the person 20
within the scope of the representative's actual or apparent authority is 21
taken to have been engaged in also by the person unless the person 22
proves-- 23
(a) if the person was in a position to influence the representative in 24
relation to the conduct--the person took reasonable steps to 25
prevent the conduct; or 26
(b) the person was not in a position to influence the representative in 27
relation to the conduct. 28
(4) In this section-- 29
"engaging" in conduct includes failing to engage in conduct. 30
"representative" means-- 31
(a) for a corporation--an agent, employee or executive officer of the 32
corporation; or 33
s 841 498 s 841
Petroleum and Gas (Production and Safety) Bill 2004
(b) for an individual--an agent or employee of the individual. 1
"state of mind", of a person, includes the person's-- 2
(a) belief, intention, knowledge, opinion or purpose; and 3
(b) reasons for the belief, intention, opinion or purpose. 4
841 Additional orders that may be made on conviction 5
(1) If a court convicts a person for an offence against this Act, it may-- 6
(a) order the forfeiture to the State of-- 7
(i) anything used to commit the offence; or 8
(ii) anything else the subject of the offence; and 9
(b) make any order to enforce the forfeiture it considers appropriate; 10
and 11
(c) order the person to pay the State the amount of costs it incurred 12
for remedial work that was necessary or desirable because of the 13
commission of the offence.609 14
(2) Forfeiture of a thing may be ordered-- 15
(a) whether or not it has been seized under this Act; and 16
(b) if it has been seized under this Act, whether or not it has been 17
returned to its owner. 18
609 See also section 580 (Power of authorised person to ensure compliance).
s 842 499 s 843
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 14--MISCELLANEOUS PROVISIONS 1
PART 1--APPLICATIONS 2
842 Substantial compliance with application requirements may be 3
accepted 4
If-- 5
(a) a person has made, or purported to make, an application under 6
this Act; and 7
(b) the requirements under this Act for making the application have 8
not been complied with; and 9
(c) the decision-maker is satisfied the application substantially 10
complies with the requirements; 11
the person who must decide the application may decide to allow it to 12
proceed and be decided as if it did comply with the requirements. 13
843 Additional information may be required about application 14
(1) If a person (the "decider") is deciding, or is required to decide, an 15
application under this Act, the decider may, by notice, require the applicant 16
to give the decider within a stated reasonable period-- 17
(a) additional information about, or a document relevant to, the 18
application; or 19
(b) a statutory declaration verifying any information included in the 20
application or any additional information required under 21
paragraph (a). 22
(2) For subsection (1)(a), if the application is for a petroleum authority, a 23
required document may include a survey or re-survey of the area of, or land 24
to be subject to, the proposed authority, carried out by a cadastral surveyor 25
under the Surveyors Act 2003. 26
(3) The holder must pay any costs incurred in complying with the notice. 27
(4) If the applicant does not give the decider the additional information 28
or declaration by the stated day, the decider may refuse the application. 29
(5) The applicant must pay any costs incurred in complying with the 30
notice. 31
s 844 500 s 845
Petroleum and Gas (Production and Safety) Bill 2004
844 Amending applications 1
(1) If a person has made an application under this Act, the person may 2
amend the application or a document accompanying the application only 3
if-- 4
(a) the application has not been decided; and 5
(b) the official who may or must decide the application has agreed to 6
the making of the amendment; and 7
(c) if the proposed amendment is to change the applicant--each 8
applicant, and proposed applicant, has agreed to the change. 9
(2) However, if the application is a tender for a petroleum tenure-- 10
(a) a proposed work program or development plan included in the 11
tender can not be amended after the applicant has become the 12
preferred tenderer for the tender; and 13
(b) the tender can not be otherwise amended after the closing time 14
for the relevant call for tenders. 15
(3) If, under subsection (1), the application is amended to change the 16
applicant, for the purpose of deciding the application, the applicant as 17
changed is taken to have been the applicant from the making of the 18
application. 19
845 Withdrawal of application 20
(1) A person who has made an application under this Act may lodge a 21
notice withdrawing the application at any time before the following-- 22
(a) generally--before the application is decided; 23
(b) for a petroleum authority--the granting of the authority. 24
(2) The notice must be lodged at the office at which this Act requires the 25
application to be lodged. 26
(3) The withdrawal of an application takes effect when the notice of 27
withdrawal is lodged. 28
(4) If the applicant is a preferred tenderer for a call for tenders under 29
chapter 2, the withdrawal does not affect the Minister's power to appoint 30
another tenderer from the tenders made in response to the call to be the 31
preferred tenderer. 32
s 846 501 s 848
Petroleum and Gas (Production and Safety) Bill 2004
846 Minister's power to refund application fee 1
If an application under this Act is withdrawn, the Minister may refund all 2
or part of any fee paid for the application. 3
PART 2--MISCELLANEOUS PROVISIONS FOR ALL 4
AUTHORITIES UNDER ACT 5
847 Application of pt 2 6
This part applies for any authority under this Act. 610
7
848 Power to correct or amend 8
(1) The official who may issue the authority may amend it at any time by 9
giving its holder a notice of the amendment and recording particulars in the 10
relevant register if the amendment-- 11
(a) is to correct a clerical error; or 12
(b) for a petroleum authority--is to state or more accurately state the 13
boundaries of the area of the authority because of a survey 14
carried out under section 558.611 15
(2) The official who may issue the authority may, at any time, amend a 16
condition of the authority if the authority holder authority agrees in writing. 17
(3) Despite subsections (1) and (2), the following can not be amended 18
under this section-- 19
(a) the mandatory conditions for that type of authority; 20
(b) the term of the authority; 21
(c) any work program or development plan for the authority. 22
610 For the authorities under the Act, see section 18 (Types of authority under Act).
611 Section 558 (Obligation to survey if Minister requires)
s 849 502 s 851
Petroleum and Gas (Production and Safety) Bill 2004
(4) Also, the official can not amend the authority if the authority as 1
amended would be inconsistent with a mandatory condition for that type of 2
authority.612 3
849 Replacement of authority 4
(1) If the authority has been lost, stolen or destroyed, its holder may 5
apply in writing to the official who may issue the authority to replace it. 6
(2) The application must be lodged at the office at which an application 7
for that type of petroleum authority must be lodged. 8
(3) If the official is reasonably satisfied the authority or licence has been 9
lost, stolen or destroyed, the official must replace the authority. 10
(4) If the official decides to refuse to replace the authority, the official 11
must give the holder an information notice about the decision. 12
850 Joint and several liability for conditions and for debts to State 13
If more than 1 person holds the authority each holder is jointly and 14
severally-- 15
(a) responsible for complying with its conditions; and 16
(b) liable for all debts payable under this Act and unpaid by the 17
authority holder to the State. 18
851 Notice of authority or licence holder's agents 19
An official may refuse to deal with a person who claims to be acting as 20
the authority holder's agent, unless the holder has given the official notice 21
of the agency. 22
612 See also section 377 (Interests of relevant coal or oil shale mining tenement holder
to be considered).
s 852 503 s 854
Petroleum and Gas (Production and Safety) Bill 2004
PART 3--OTHER MISCELLANEOUS PROVISIONS 1
852 Name and address for service 2
(1) A person (the "first person") may, by a signed notice lodged at the 3
relevant office, nominate another person (a "nominated person") at a 4
stated address as the first person's address for service for this Act. 5
(2) If this Act requires or permits any official to serve a notice or other 6
document on the first person, it may be served on the first person by serving 7
it on the last nominated person, at the stated address for that person. 8
(3) In this section-- 9
"relevant office" means-- 10
(a) the office of the department for lodging notices of address for 11
service, as stated in a gazette notice by the chief executive; or 12
(b) if no office is gazetted under paragraph (a)--the office of the 13
chief executive. 14
"serve" includes give. 15
853 Additional information about reports and other matters 16
(1) This section applies if-- 17
(a) a person is required under this Act to lodge a notice or copy of a 18
document, a report or information (the "advice") with an 19
official; and 20
(b) the person gives the advice. 21
(2) The official may, by notice, require the person to give, within the 22
reasonable time stated in the notice, written information about the matter 23
for which the advice was given. 24
(3) The person must comply with the notice. 25
Maximum penalty for subsection (3)--300 penalty units. 26
854 References to right to enter 27
A right under this Act to enter a place includes the right to-- 28
(a) leave and re-enter the place from time to time; and 29
s 855 504 s 856
Petroleum and Gas (Production and Safety) Bill 2004
(b) remain on the place for the time necessary to achieve the purpose 1
of the entry; and 2
(c) take on the place equipment, materials, vehicles or other things 3
reasonably necessary to exercise a power under this Act.613 4
855 Application of provisions 5
If a provision of this Act applies any of the following (the "applied 6
law") for a purpose-- 7
(a) another provision of this Act; 8
(b) another law; 9
(c) a provision of another law; 10
for that purpose, the applied law and any definition relevant to it apply, 11
with necessary changes. 12
856 Protection from liability for particular persons 13
(1) A person as follows (a "designated person") does not incur civil 14
liability for an act done, or omission made, honestly and without 15
negligence under this Act-- 16
(a) an official; 17
(b) a public service officer or employee; 18
(c) a contractor carrying out activities, relating to the administration 19
of this Act, for the department; 20
(d) a person who is required to comply with a direction or 21
requirement given under this Act and who is complying with the 22
direction or requirement. 23
(2) For subsection (1)(a), it does not matter what is the form of 24
appointment or employment of the person. 25
(3) If subsection (1) prevents a civil liability attaching to a designated 26
person, the liability attaches instead to the State. 27
(4) In this section-- 28
613 For who may exercise a right of a petroleum authority holder to enter a place, see
also section 563 (Who may carry out authorised activity for petroleum).
s 857 505 s 859
Petroleum and Gas (Production and Safety) Bill 2004
"civil liability" includes liability for the payment of costs ordered to be 1
paid in a proceeding for an offence against this Act. 2
857 Delegation by Minister, chief executive or chief inspector 3
(1) The Minister may delegate the Minister's powers under this Act to-- 4
(a) an appropriately qualified public service officer or employee; or 5
(b) an appropriately qualified contractor carrying out activities, 6
relating to the administration of this Act, for the department. 7
(2) The chief executive may delegate the chief executive's powers under 8
this Act to a person mentioned in subsection (1). 9
(3) The chief inspector may delegate the chief inspector's powers under 10
this Act to an inspector or, with the Minister's approval, a person 11
mentioned in subsection (1). 12
858 Approved forms 13
(1) The chief executive may approve forms for use under this Act. 14
(2) The chief inspector may approve forms for use under chapters 7 15
to 10. 16
859 Regulation-making power 17
(1) The Governor in Council may make regulations under this Act. 18
(2) A regulation may be made about any of the following-- 19
(a) the fees payable under this Act, including late payment fees; 20
(b) imposing a penalty for a contravention of a provision of a 21
regulation of no more than 20 penalty units. 22
(3) A regulation under this Act may be made in the same instrument as a 23
regulation made under the 1923 Act. 24
s 860 506 s 862
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 15--REPEAL AND TRANSITIONAL 1
PROVISIONS 2
PART 1--REPEAL OF GAS (RESIDUAL PROVISIONS) 3
ACT 1965 4
860 Repeal 5
The Gas (Residual Provisions) Act 1965 No. 68 is repealed.614 6
PART 2--TRANSITIONAL PROVISIONS FOR 7
REPEAL OF GAS (RESIDUAL PROVISIONS) 8
ACT 1965 9
861 Definitions for pt 2 10
In this division-- 11
"commencement" means the day section 860 commences. 12
"repealed Act" means the repealed Gas (Residual Provisions) Act 1965. 13
"repealed regulation" means the repealed Gas (Residual Provisions) 14
Regulation 1989. 15
862 Meters 16
(1) This section applies to a meter operated under the repealed Act 17
immediately before the commencement. 18
(2) Chapter 8, part 2,615 does not apply to the meter until the later of 19
following-- 20
(a) 6 months after the commencement; 21
614 For the limited continued application of the Gas (Residual Provisions) Act 1965 for
a particular purpose, see section 877 (Existing operating plant).
615 Chapter 8, part 2 (Measurement schemes)
s 863 507 s 865
Petroleum and Gas (Production and Safety) Bill 2004
(b) if a regulation made within the 6 months prescribes a later 1
day--the later day. 2
(3) The later day must not be later than 1 year after the commencement. 3
863 Applications to test meter correctness 4
(1) This section applies if, immediately before the commencement, an 5
application had been made under the repealed regulation, section 57, to 6
have a meter tested and the test had not been carried out. 7
(2) Despite their repeal, sections 57 and 58 of that regulation apply for 8
the application, the test and its consequences, instead of chapter 8, part 5.616 9
864 Licences under repealed regulation that become a gas work 10
licence 11
(1) This section applies if, immediately before the commencement, a 12
person held a licence under the repealed regulation, section 83, and the 13
licence (the "old licence") was-- 14
(a) a gas installer's licence; or 15
(b) a gas serviceman's licence; 16
(2) On the commencement, the old licence is taken to be a gas work 17
licence for the same purpose as the old licence. 18
(3) Subject to chapter 10, part 2, division 4,617 the term of the gas work 19
licence ends when the term of the old licence would have ended. 20
865 Licences under repealed regulation that become an authorisation 21
(1) This section applies if, immediately before the commencement, a 22
person held a licence under the repealed regulation, section 83, and the 23
licence was-- 24
(a) a gas installer's (advanced) licence; or 25
616 Repealed regulation, sections 57 (Testing for correctness of registration) and
58 (Appointment of fees)
Chapter 8, part 5 (Meter accuracy disputes)
617 Chapter 10, part 2, division 4 (Noncompliance procedure for all authorities under
Act)
s 866 508 s 867
Petroleum and Gas (Production and Safety) Bill 2004
(b) a gas motor fuel installer's licence; or 1
(c) a gas suppliers inspector's licence. 2
(2) On the commencement, the licence is taken to be an authorisation for 3
the same purpose as the licence. 4
(3) Subject to chapter 10, part 2, division 4,618 the term of the 5
authorisation expires 6 months after the commencement. 6
866 Applications for licence similar to gas work licence or 7
authorisation 8
(1) This section applies if, immediately before the commencement, a 9
licence application under the repealed regulation, section 84,619 had not 10
been decided. 11
(2) If the application is for a type of licence mentioned in section 864 12
or 865, it is, on the commencement, taken to be an application for a gas 13
work licence or authorisation for the same purpose under this Act. 14
(3) Otherwise, the application lapses and the application fee must be 15
returned to the applicant. 16
867 Accidents 17
(1) Despite its repeal, the repealed Act, as in force immediately before its 18
repeal, continues to apply for an accident if-- 19
(a) it happened before the commencement; and 20
(b) immediately before its repeal, section 10A of that Act applied to 21
the accident; and 22
(c) a report on the accident had not been completed before the 23
commencement. 24
(2) For applying subsection (1), a reference in the repealed Act to-- 25
(a) the chief gas examiner is taken to be a reference to the chief 26
inspector under this Act; and 27
618 Chapter 10, part 2, division 4 (Noncompliance procedure for all authorities under
Act)
619 Repealed regulation, section 84 (Application for and grant of licence)
s 868 509 s 870
Petroleum and Gas (Production and Safety) Bill 2004
(b) a gas examiner is taken to be a reference to any inspector under 1
this Act. 2
868 Gas examiners and other officers 3
(1) This section applies to a person who, immediately before the 4
commencement, is, under the repealed Act, section 7-- 5
(a) the chief gas examiner; or 6
(b) the deputy chief gas examiner; or 7
(c) a gas examiner. 8
(2) On the commencement, the person holds the appointment of-- 9
(a) if the person was the chief gas examiner--the chief inspector; or 10
(b) if the person was the deputy chief gas examiner--the deputy 11
chief inspector; or 12
(c) if the person was a gas examiner--an inspector. 13
869 Gas examiners' requirements under repealed Act, s 8 14
(1) This section applies if before the commencement-- 15
(a) a gas examiner had given a person a requirement under the 16
repealed Act, section 8; and 17
(b) the requirement was still in force and had not been complied 18
with. 19
(2) The requirement is, on the commencement, taken to be a dangerous 20
situation direction given to the person on the commencement. 21
870 Gas examiners' powers under repealed Act, s 8(1)(e) 22
(1) This section applies if, before the commencement-- 23
(a) a gas examiner had seized and removed a substance under the 24
repealed Act, section 8(1)(e); and 25
(b) the substance has not been dealt with under that Act. 26
(2) The repealed Act, section 8(1)(e), continues to apply for the 27
substance. 28
s 871 510 s 872
Petroleum and Gas (Production and Safety) Bill 2004
(3) For subsection (1)(a), an inspector under this Act is taken to be a gas 1
examiner. 2
871 Corresponding decisions under repealed Act 3
A decision made under the repealed Act about a matter provided for 4
under this Act that continues to have effect immediately before the 5
commencement is, on the commencement, taken to be a decision made 6
under this Act on the commencement. 7
PART 3--TRANSITIONAL PROVISIONS FOR 8
PETROLEUM AND GAS (PRODUCTION AND SAFETY) 9
ACT 2004 10
Division 1--Provisions for particular existing mining tenements 11
872 Application of s 6 to particular existing mining tenements 12
(1) This section applies to a mining tenement under the Mineral 13
Resources Act in force immediately before the commencement, other than 14
a coal or oil shale mining tenement. 15
(2) Section 6620 applies to the mining tenement as if it were granted after 16
the commencement. 17
(3) However, for a mining tenement other than a mining lease, 18
section 6(3) and (6) does not apply for the carrying out of an authorised 19
activity for a petroleum authority in the area of the tenement until 3 months 20
after the commencement. 21
(4) The Mineral Resources Act, section 403, does not apply for the 22
carrying out of the authorised activity until 3 months after the 23
commencement. 24
(5) In this section-- 25
"commencement" means the day section 6 commences. 26
620 Section 6 (Relationship with Mineral Resources Act)
s 873 511 s 875
Petroleum and Gas (Production and Safety) Bill 2004
Division 2--Provisions for coal seam gas 1
873 Deferral of s 115(1) for existing petroleum leases 2
Section 115(1)621 does not apply to the holder of a petroleum lease in 3
force at the commencement of this section until 6 months after the 4
commencement. 5
874 Substituted restriction for petroleum leases relating to mineral 6
hydrocarbon mining leases 7
(1) If when section 364622 applies for a petroleum lease and any applicant 8
for the petroleum lease was the holder of a relevant mineral hydrocarbon 9
mining lease, that section applies as if the reference in that section to 10
incidental coal seam gas were a reference to coal seam gas. 11
(2) In this section-- 12
"relevant mineral hydrocarbon mining lease" means a mineral 13
hydrocarbon mining lease as defined under the Mineral Resources 14
Act, section 739,623 the area of which includes the overlapping ATP 15
land to which section 364 applies. 16
Division 3--Miscellaneous provisions 17
875 Continuation of petroleum royalty exemption for flaring or 18
venting under 1923 Act 19
(1) This section applies if-- 20
(a) immediately before the commencement of section 590, royalty 21
under the 1923 Act was not payable because of the 1923 Act, 22
former section 56(1)(c);624 and 23
621 Section 115 (Restriction petroleum production from reservoir)
622 Section 364 (Restriction on authorised activities on overlapping ATP land)
623 Mineral Resources Act, section 739 (Definitions for div 6)
624 Section 590 of this Act (Imposition of petroleum royalty on petroleum producers)
1923 Act, former section 56 (Royalty not payable in certain cases)
s 876 512 s 877
Petroleum and Gas (Production and Safety) Bill 2004
(b) flaring or venting was carried out under a 1923 Act petroleum 1
tenure that, after the commencement, continues to be a 1923 Act 2
petroleum tenure. 3
(2) The flaring or venting of petroleum under the 1923 Act petroleum 4
tenure is exempt from petroleum royalty under this Act if, other than for the 5
repeal of the 1923 Act, former part 7, division 2, royalty under that Act 6
would not have been payable for the petroleum. 7
876 Deferred application of s 803 for existing petroleum facilities 8
Section 803625 does not apply for a petroleum facility that was operating 9
at any time within 2 weeks before the commencement of that section until 10
1 year after the commencement. 11
877 Existing operating plant 12
(1) This section applies for plant operated, or an activity carried out, 13
immediately before the commencement of this section if this Act applies to 14
the activity or operation. 15
(2) Chapter 9, parts 2 and 4,626 do not apply to the plant or activity
until-- 16
(a) the end of the period prescribed under a regulation; or 17
(b) if no period is prescribed within 6 months after the 18
commencement of this section--6 months after the 19
commencement. 20
(3) The prescribed period must not end later than 1 year after the 21
commencement. 22
(4) Until chapter 9, parts 2 and 4 apply, the following continue to apply 23
to the plant or activity-- 24
(a) the repealed Gas (Residual Provisions) Act 1965 as in force 25
immediately before the commencement; 26
(b) the 1923 Act as in force immediately before the commencement. 27
625 Section 803 (Restriction on pipeline facility construction or operation)
626 Chapter 9, parts 2 (Safety management plans) and 4 (Other safety obligations)
s 878 513 s 878
Petroleum and Gas (Production and Safety) Bill 2004
878 Exclusion of ch 5, pt 3, div 1 for continuance of particular existing 1
road uses 2
(1) If, immediately before the commencement, a petroleum authority 3
holder was using a public road in the area of the authority for transport 4
relating to a seismic survey or drilling activity, chapter 5, part 3, 5
division 1627 does not apply for the use while it continues. 6
(2) Subsection (1) applies for the use (the "haulage use") by a 7
petroleum authority holder of a public road for haulage that relates to-- 8
(a) the transportation of petroleum produced or processed in the area 9
of the authority; or 10
(b) the construction of a pipeline. 11
(3) Chapter 5, part 3, division 1 does not apply for the haulage use if-- 12
(a) at any time within 12 months before the commencement, the 13
holder was carrying out the haulage use; and 14
(b) the type of haulage under the haulage use is the same, or 15
substantially the same, as the type of haulage carried out within 16
the 12 months. 17
(4) Subsection (1) applies even if the haulage use stops and later starts 18
again. 19
(5) In this section-- 20
"commencement" means the day section 516628 commences. 21
627 Chapter 5, part 3, division 1 (Public roads)
628 Section 516 (Notice of notifiable road use)
s 879 514 s 881
Petroleum and Gas (Production and Safety) Bill 2004
CHAPTER 16--AMENDMENT OF ACTS 1
PART 1--AMENDMENT OF ABORIGINAL LAND ACT 2
1991 3
879 Act amended in pt 1 4
This part amends the Aboriginal Land Act 1991. 5
880 Amendment of s 3 (Definitions) 6
(1) Section 3, definition "petroleum"-- 7
omit, insert-- 8
` "petroleum" means petroleum under the Petroleum and Gas (Production 9
and Safety) Act 2004.'. 10
(2) Section 3, definition "mining interest", paragraph (a), `or the 11
Petroleum Act 1923'-- 12
omit, insert-- 13
`, the Petroleum Act 1923 or the Petroleum and Gas (Production and 14
Safety) Act 2004'. 15
881 Amendment of s 88 (Royalties in relation to mining on Aboriginal 16
land) 17
Section 88(1), `Petroleum Act 1923'-- 18
omit, insert-- 19
`Petroleum and Gas (Production and Safety) Act 2004'. 20
s 882 515 s 884
Petroleum and Gas (Production and Safety) Bill 2004
PART 2--AMENDMENT OF COAL MINING SAFETY 1
AND HEALTH ACT 1999 2
882 Act amended in pt 2 3
This part amends the Coal Mining Safety and Health Act 1999. 4
883 Insertion of new s 62A 5
After section 62-- 6
insert-- 7
`62A Additional requirement for coal mining operation for incidental 8
coal seam gas 9
`(1) This section applies if coal mining operations at a coal mine include 10
activities related to mining incidental coal seam gas. 11
`(2) In deciding whether the safety and health management system for 12
the coal mine is adequate and effective to achieve an acceptable level of 13
risk for section 62(3), regard must be had to the requirements for a safety 14
management plan under the Petroleum and Gas (Production and Safety) 15
Act 2004.629'. 16
884 Amendment of sch 2 (Subject matter for regulations) 17
(1) Schedule 2, part 1-- 18
insert-- 19
`2A. Matters specifically relating to the exploration, mining, 20
management, disposal and use of coal seam gas.'. 21
(2) Schedule 2, part 2-- 22
629 See the Petroleum and Gas (Production and Safety) Act 2004, sections 675 (Content
requirements for safety management plans) and 388 (Additional content
requirements).
For mineral hydrocarbon mining leases as defined under the Mineral Resources Act
1989, part 19, division 6, see section 747 (Continuation of particular rights relating
to coal seam gas under mineral hydrocarbon mining leases) of that Act and the
Petroleum and Gas (Production and Safety) Act 2004, section 671 (Limitation for
facility or pipeline included in coal mining operation).
s 885 516 s 885
Petroleum and Gas (Production and Safety) Bill 2004
insert-- 1
`36A. Requirements, in addition to the requirement under section 62A,630 2
for safety and health management systems in relation to mineable coal 3
seams for coal mining operations at a coal mine that include activities 4
related to mining coal seam gas. 5
36B. What are mineable coal seams for item 36A. 6
36C. The granting of exemptions by the Minister from complying with a 7
stated requirement in relation to mineable coal seams for-- 8
(a) stated coal mining operations at a coal mine; or 9
(b) a stated mineable coal seam.'. 10
(3) Schedule 2, part 2, item 37, `6 to 36'-- 11
omit, insert-- 12
`6 to 36C'. 13
885 Amendment of sch 3 (Dictionary) 14
(1) Schedule 3, definition "safety and health management system"-- 15
omit. 16
(2) Schedule 3-- 17
insert-- 18
` "incidental coal seam gas"-- 19
1. "Incidental coal seam gas" is coal seam gas mined, or proposed 20
to be mined, under the Mineral Resources Act 1989, 21
section 318CM,631 in the tenure area of the mining lease if the 22
mining is-- 23
(a) a necessary result of coal mining carried out under the lease; 24
or 25
(b) necessary to ensure a safe mine working environment for 26
coal mining under the lease; or 27
630 Section 62A (Additional requirement for coal mining operation for incidental
coal seam gas)
631 Mineral Resources Act 1989, section 318CM (Limited entitlement to mine coal
seam gas)
s 885 517 s 885
Petroleum and Gas (Production and Safety) Bill 2004
(c) necessary to minimise the fugitive emission of methane 1
during the course of coal mining operations. 2
2. For item 1, coal seam gas means a substance (in any state) 3
occurring naturally in association with coal, or strata associated 4
with coal, if the substance is petroleum under the Petroleum and 5
Gas (Production and Safety) Act 2004.632 6
"safety and health management system" means a safety and health 7
management system that complies with section 62 and, if section 62A 8
applies, section 62A.'. 9
(3) Schedule 3, definition "coal mining operations", after `in relation to 10
coal'-- 11
insert-- 12
`or incidental coal seam gas'. 13
(4) Schedule 3, definition "surface mine"-- 14
insert as example for paragraph (b)-- 15
16
`Example of surface operations of an underground mine--
17
A coal mine consists of an underground coal mine and related overlaying
18
surface facilities for mining incidental coal seam gas. The facilities are
19
surface operations for the underground mine.'.
(5) Schedule 3, definition "underground mine"-- 20
insert-- 21
22
`Example of surface operations of an underground mine--
23
A coal mine consists of an underground coal mine and related overlaying surface
24
facilities for mining incidental coal seam gas. The facilities are surface operations
25
for the underground mine.'.
632 See the Petroleum and Gas (Production and Safety) Act 2004, section 10 (Meaning
of "petroleum").
s 886 518 s 889
Petroleum and Gas (Production and Safety) Bill 2004
PART 3--AMENDMENT OF COASTAL PROTECTION 1
AND MANAGEMENT ACT 1995 2
886 Act amended in pt 3 3
This part amends the Coastal Protection and Management Act 1995. 4
887 Amendment of schedule (Dictionary) 5
Schedule, definition "interest", paragraph (b), after `Petroleum Act 6
1923'-- 7
insert-- 8
`or the Petroleum and Gas (Production and Safety) Act 2004'. 9
PART 4--AMENDMENT OF DANGEROUS GOODS 10
SAFETY MANAGEMENT ACT 2001 11
888 Act amended in pt 4 12
This part amends the Dangerous Goods Safety Management Act 2001. 13
889 Amendment of s 3 (Application of Act) 14
(1) Section 3(1)(c)-- 15
omit, insert-- 16
`(c) land that, under the Petroleum Act 1923 or the Petroleum and 17
Gas (Production and Safety) Act 2004, is used to obtain, produce 18
or transport petroleum; or'. 19
(2) Section 3, `Gas (Residual Provisions) Act 1965'-- 20
omit, insert-- 21
`Petroleum and Gas (Production and Safety) Act 2004'. 22
s 890 519 s 893
Petroleum and Gas (Production and Safety) Bill 2004
890 Amendment of s 126 (Notice of major accident) 1
(1) Section 126(2)(b) and (c)-- 2
omit, insert-- 3
`(b) Petroleum and Gas (Production and Safety) Act 2004;'. 4
(2) Section 126(2)(d)-- 5
renumber as section 126(2)(c). 6
PART 5--AMENDMENT OF DUTIES ACT 2001 7
891 Act amended in pt 5 8
This part amends the Duties Act 2001. 9
892 Amendment of s 137 (Exemption--mining and petroleum 10
legislation) 11
Section 137(3), `a unitisation arrangement under the Petroleum Act 12
1923, section 62'-- 13
omit, insert-- 14
`a coordination arrangement under the Petroleum and Gas (Production 15
and Safety) Act 2004'. 16
893 Amendment of sch 6 (Dictionary) 17
Schedule 6, definitions "land" and "statutory licence", `the Petroleum 18
Act 1923'-- 19
omit, insert-- 20
`the Petroleum Act 1923 or the Petroleum and Gas (Production and 21
Safety) Act 2004'. 22
s 894 520 s 897
Petroleum and Gas (Production and Safety) Bill 2004
PART 6--AMENDMENT OF ELECTRICAL SAFETY 1
ACT 2002 2
894 Act amended in pt 6 3
This part amends the Electrical Safety Act 2002. 4
895 Amendment of s 6 (Application of Act to mines and petroleum 5
plant) 6
Section 6(3), definition "petroleum plant", `Petroleum Act 1923'-- 7
omit, insert-- 8
`Petroleum and Gas (Production and Safety) Act 2004'. 9
PART 7--AMENDMENT OF ENVIRONMENTAL 10
PROTECTION ACT 1994 11
896 Act amended in pt 7 12
This part amends the Environmental Protection Act 1994. 13
897 Amendment of sch 3 (Dictionary) 14
Schedule 3, definition "petroleum activity", paragraph (a)-- 15
omit, insert-- 16
`(a) on land in the area of-- 17
(i) an authority to prospect or petroleum lease under the 18
Petroleum Act 1923; or 19
(ii) a petroleum authority under the Petroleum and Gas 20
(Production and Safety) Act 2004;'. 21
s 898 521 s 902
Petroleum and Gas (Production and Safety) Bill 2004
PART 8--AMENDMENT OF EXPLOSIVES ACT 1999 1
898 Act amended in pt 8 2
This part amends the Explosives Act 1999. 3
899 Amendment of s 6 (Act's effect on other Acts) 4
Section 6(2), definition "Act about mining", paragraph (c)-- 5
omit. 6
PART 9--AMENDMENT OF FIRE AND RESCUE 7
SERVICE ACT 1990 8
900 Act amended in pt 9 9
This part amends the Fire and Rescue Service Act 1990. 10
901 Amendment of s 95 (Application of part) 11
Section 95(1)(c), after `Petroleum Act 1923'-- 12
insert-- 13
`or the Petroleum and Gas (Production and Safety) Act 2004'. 14
PART 10--AMENDMENT OF FOREIGN OWNERSHIP 15
OF LAND REGISTER ACT 1988 16
902 Act amended in pt 10 17
This part amends the Foreign Ownership of Land Register Act 1988. 18
s 903 522 s 906
Petroleum and Gas (Production and Safety) Bill 2004
903 Amendment of s 4 (Interpretation) 1
(1) Section 4, definition "interest in land", paragraph (n), from `the crude 2
oil,' to `Petroleum Act 1923)'-- 3
omit, insert-- 4
`petroleum (within the meaning of the Petroleum and Gas (Production 5
and Safety) Act 2004)'. 6
(2) Section 4, definition "interest in land", paragraph (o), after 7
`Petroleum Act 1923'-- 8
insert-- 9
`, the Petroleum and Gas (Production and Safety) Act 2004'. 10
PART 11--AMENDMENT OF FORESTRY ACT 1959 11
904 Act amended in pt 11 12
This part amends the Forestry Act 1959. 13
905 Amendment of s 5 (Definitions) 14
Section 5, definition "Mining Acts", `or the Petroleum Act 1923'-- 15
omit, insert-- 16
`, the Petroleum Act 1923 or the Petroleum and Gas (Production and 17
Safety) Act 2004'. 18
PART 12--AMENDMENT OF GAS PIPELINES ACCESS 19
(QUEENSLAND) ACT 1998 20
906 Act amended in pt 12 21
This part amends the Gas Pipelines Access (Queensland) Act 1998. 22
s 907 523 s 911
Petroleum and Gas (Production and Safety) Bill 2004
907 Amendment of s 11 (Interpretation of some expressions in the Gas 1
Pipelines Access (Queensland) Law and the Gas Pipelines Access 2
(Queensland) Regulations) 3
Section 11, definition "local Minister", `Petroleum Act 1923'-- 4
omit, insert-- 5
`Gas Supply Act 2003'. 6
908 Amendment of s 56 (Definitions for pt 6) 7
Section 56, definition "pipeline licence", `Petroleum Act 1923'-- 8
omit, insert-- 9
`Petroleum and Gas (Production and Safety) Act 2004'. 10
PART 13--AMENDMENT OF GAS SUPPLY ACT 2003 11
909 Act amended in pt 13 12
This part amends the Gas Supply Act 2003. 13
910 Amendment of s 40 (General conditions) 14
Section 40(c), `Gas (Residual Provisions) Act'-- 15
omit, insert-- 16
`Petroleum and Gas (Production and Safety) Act'. 17
911 Amendment of s 46 (Standard for distribution pipes) 18
Section 46, `Gas (Residual Provisions) Act'-- 19
omit, insert-- 20
`Petroleum and Gas (Production and Safety) Act'. 21
s 912 524 s 916
Petroleum and Gas (Production and Safety) Bill 2004
912 Amendment of s 57 (Conditions for amendment, cancellation or 1
suspension) 2
Section 57(2)(b)(ii) and (iii), `Gas (Residual Provisions) Act'-- 3
omit, insert-- 4
`Petroleum and Gas (Production and Safety) Act'. 5
913 Amendment of s 85 (General obligations in carrying out work) 6
Section 85(1)(d)(ii), `Gas (Residual Provisions) Act'-- 7
omit, insert-- 8
`Petroleum and Gas (Production and Safety) Act'. 9
914 Amendment of s 88 (Compliance with work direction) 10
Section 88(3), `Gas (Residual Provisions) Act'-- 11
omit, insert-- 12
`Petroleum and Gas (Production and Safety) Act'. 13
915 Amendment of s 93 (Compliance with consequential work 14
requirement) 15
Section 93(3), `Gas (Residual Provisions) Act'-- 16
omit, insert-- 17
`Petroleum and Gas (Production and Safety) Act'. 18
916 Amendment of s 98 (Compliance with remedial action 19
requirement) 20
Section 98(3), `Gas (Residual Provisions) Act'-- 21
omit, insert-- 22
`Petroleum and Gas (Production and Safety) Act'. 23
s 917 525 s 920
Petroleum and Gas (Production and Safety) Bill 2004
917 Amendment of s 109 (Limits on provision of customer connection 1
services) 2
(1) Section 109(1)(a)(i) and (ii)-- 3
omit, insert-- 4
`(i) contravenes a provision of the Petroleum and Gas 5
(Production and Safety) Act or another relevant Act about 6
safety; or 7
(ii) contravenes a provision of the Petroleum and Gas 8
(Production and Safety) Act or another relevant Act about 9
gas measurement or quality; or'. 10
(2) Section 109(2), `or under the Gas (Residual Provisions) Act, 11
section 60B'-- 12
omit, insert-- 13
`or under a dangerous situation direction under the Petroleum and Gas 14
(Production and Safety) Act'. 15
918 Amendment of s 120 (When distributor may discontinue) 16
(1) Section 120(3)(b), `the Gas (Residual Provisions) Act, 17
section 60A'-- 18
omit, insert-- 19
`a dangerous situation direction under the Petroleum and Gas 20
(Production and Safety) Act'. 21
(2) Section 120(4)-- 22
omit. 23
919 Amendment of s 123 (Recommencement) 24
Section 123(2), `Gas (Residual Provisions) Act'-- 25
omit, insert-- 26
`Petroleum and Gas (Production and Safety) Act'. 27
920 Amendment of s 166 (General conditions) 28
Section 166(b), `Gas (Residual Provisions) Act'-- 29
s 921 526 s 924
Petroleum and Gas (Production and Safety) Bill 2004
omit, insert-- 1
`Petroleum and Gas (Production and Safety) Act'. 2
921 Amendment of s 181 (Conditions for amendment, cancellation or 3
suspension) 4
Section 181(2)(b)(ii) and (iii), `Gas (Residual Provisions) Act'-- 5
omit, insert-- 6
`Petroleum and Gas (Production and Safety) Act'. 7
922 Amendment of s 204 (Limits on provision of customer retail 8
services) 9
(1) Section 204(1)(e), `Gas (Residual Provisions) Act'-- 10
omit, insert-- 11
`Petroleum and Gas (Production and Safety) Act'. 12
(2) Section 204(2), `or under the Gas (Residual Provisions) Act, 13
section 60B'-- 14
omit, insert-- 15
`or under a dangerous situation direction under the Petroleum and Gas 16
(Production and Safety) Act'. 17
923 Amendment of s 222 (Individual metering option) 18
Section 222(3)(a), `Gas (Residual Provisions) Act'-- 19
omit, insert-- 20
`Petroleum and Gas (Production and Safety) Act'. 21
924 Amendment of s 236 (Who is a "industry participant") 22
(1) Section 236, `a "industry participant" '-- 23
omit, insert-- 24
`an "industry participant" '. 25
(2) Section 236(d)(i)-- 26
s 925 527 s 926
Petroleum and Gas (Production and Safety) Bill 2004
omit, insert-- 1
`(i) holds-- 2
(A) a lease under the Petroleum Act 1923; or 3
(B) a petroleum lease or petroleum facility licence under 4
the Petroleum and Gas (Production and Safety) Act; 5
and'. 6
(3) Section 236(d)(ii), after `lease'-- 7
insert-- 8
`or licence'. 9
925 Amendment of s 239 (Contingency supply plan--content 10
requirements) 11
Section 239(2)(a)-- 12
omit, insert-- 13
`(a) a provision of a relevant safety management plan made under the 14
Petroleum and Gas (Production and Safety) Act or another Act; 15
or'. 16
926 Insertion of new s 257A 17
Chapter 4, after section 257-- 18
insert-- 19
`257A Exemption from Petroleum and Gas (Production and Safety) 20
Act, ss 800, 802 and 803 for person complying with direction 21
`(1) This section applies to a person to whom an insufficiency of supply 22
direction has been given. 23
`(2) The Petroleum and Gas (Production and Safety) Act, sections 800, 24
802 and 803633 do not apply for a relevant activity carried out by the person 25
if the carrying out of the activity was required under the direction. 26
`(3) In this section-- 27
633 Petroleum and Gas (Production and Safety) Act, sections 800 (Restriction on
petroleum tenure activities), 802 (Restriction on pipeline construction or operation)
and 803 (Restriction on petroleum facility construction or operation)
s 927 528 s 929
Petroleum and Gas (Production and Safety) Bill 2004
"relevant activity" means-- 1
(a) a petroleum tenure activity as defined under the Petroleum and 2
Gas (Production and Safety) Act, section 800; or 3
(b) the construction or operation of any of the following, as defined 4
under the Petroleum and Gas (Production and Safety) Act-- 5
(i) a pipeline, other than a distribution pipeline; 6
(ii) a petroleum facility.'. 7
927 Amendment of s 314 (Replacement of authority) 8
Section 314(3), `or licence'-- 9
omit. 10
928 Amendment of s 324 (Definitions for ch 7) 11
Section 324-- 12
insert-- 13
` "Gas (Residual Provisions) Act" means the repealed Gas (Residual 14
Provisions) Act 1965.'. 15
929 Amendment of sch 4 (Dictionary) 16
(1) Schedule 4, definition "Gas (Residual Provisions) Act"-- 17
omit. 18
(2) Schedule 4-- 19
insert-- 20
` "Petroleum and Gas (Production and Safety) Act" means the 21
Petroleum and Gas (Production and Safety) Act 2004.'. 22
(3) Schedule 4, definition "transmission pipeline licence", `Petroleum 23
Act 1923'-- 24
omit, insert-- 25
`Petroleum and Gas (Production and Safety) Act 2004'. 26
s 930 529 s 932
Petroleum and Gas (Production and Safety) Bill 2004
PART 14--AMENDMENT OF GEOTHERMAL 1
EXPLORATION ACT 2004 2
930 Act amended in pt 14 3
This part amends the Geothermal Exploration Act 2004. 4
931 Replacement of s 7 (Relationship with Petroleum Act 1923) 5
Section 7-- 6
omit, insert-- 7
`7 Relationship with petroleum legislation 8
`(1) This Act does not limit or otherwise affect the following powers in 9
relation to land in the area of a geothermal exploration permit-- 10
(a) the power under the Petroleum Act 1923 to grant or renew an 11
authority to prospect or petroleum lease under that Act; 12
(b) the power under the Petroleum and Gas (Production and Safety) 13
Act 2004 (the "P&G Act") to grant a petroleum authority under 14
that Act. 15
`(2) However, an activity mentioned in subsection (3) can not be carried 16
out if carrying out the activity adversely affects the carrying out of 17
geothermal exploration under this Act and the geothermal exploration has 18
already started. 19
`(3) For subsection (2) the activity is an authorised activity-- 20
(a) an authority to prospect under any of the Acts; or 21
(b) a water monitoring authority under the P&G Act; or 22
(c) a data acquisition authority under the P&G Act; or 23
(d) a pipeline licence under the P&G Act carried out on land that, 24
under that Act, is pipeline land for the licence.'. 25
932 Amendment of s 50 (Notice of significant discovery) 26
Section 50(b), `Petroleum Act 1923'-- 27
omit, insert-- 28
`Petroleum and Gas (Production and Safety) Act 2004'. 29
s 933 530 s 934
Petroleum and Gas (Production and Safety) Bill 2004
933 Amendment of s 126 (Transfer of bore to permit holder) 1
Section 126(1), after `person'-- 2
insert-- 3
`other than the State634'. 4
934 Amendment of schedule (Dictionary) 5
(1) Schedule, definition "landholder", paragraph (a)(ii), after `Petroleum 6
Act 1923'-- 7
insert-- 8
`or the Petroleum and Gas (Production and Safety) Act 2004'. 9
(2) Schedule, definition "mining interest", paragraph (b)-- 10
omit, insert-- 11
`(b) a petroleum tenure under the Petroleum Act 1923; or 12
(c) a petroleum authority under the Petroleum and Gas (Production 13
and Safety) Act 2004.'. 14
(3) Schedule, definition "production interest", paragraph (b), after 15
`Petroleum Act 1923'-- 16
insert-- 17
`or the Petroleum and Gas (Production and Safety) Act 2004'. 18
(4) Schedule, definition "production interest", paragraph (c)-- 19
omit, insert-- 20
`(c) pipeline land for a pipeline licence under the Petroleum and Gas 21
(Production and Safety) Act 2004.'. 22
634 For transfers from the State, see the Petroleum and Gas (Production and Safety) Act
2004, section 294 (Responsibility for well or bore after decommissioning).
s 935 531 s 939
Petroleum and Gas (Production and Safety) Bill 2004
PART 15--AMENDMENT OF INTEGRATED PLANNING 1
ACT 1997 2
935 Act amended in pt 15 3
This part amends the Integrated Planning Act 1997. 4
936 Amendment of s 5.1.7 (Infrastructure charges) 5
Section 5.1.7(4), `or the Petroleum Act 1923'-- 6
omit, insert-- 7
`, the Petroleum Act 1923 or the Petroleum and Gas (Production and 8
Safety) Act 2004'. 9
937 Amendment of s 5.1.17 (Regulated infrastructure charges) 10
Section 5.1.17(2), `or the Petroleum Act 1923'-- 11
omit, insert-- 12
`, the Petroleum Act 1923 or the Petroleum and Gas (Production and 13
Safety) Act 2004'. 14
938 Amendment of sch 9 (Development that is exempt from 15
assessment against a planning scheme) 16
Schedule 9, table 5, under heading, `Mining and petroleum activities', 17
item 1, paragraph (b), after `Petroleum Act 1923'-- 18
insert-- 19
`or the Petroleum and Gas (Production and Safety) Act 2004'. 20
PART 16--AMENDMENT OF LAND ACT 1994 21
939 Act amended in pt 16 22
This part amends the Land Act 1994. 23
s 940 532 s 942
Petroleum and Gas (Production and Safety) Bill 2004
940 Amendment of s 20 (Dealing with mining interests) 1
(1) Section 20(2)(b), `or Petroleum Act 1923'-- 2
omit, insert-- 3
`, the Petroleum Act 1923 or the Petroleum and Gas (Production and 4
Safety) Act 2004'. 5
(2) Section 20(3), definition "mining interest", `or the Petroleum Act 6
1923'-- 7
omit, insert-- 8
`, the Petroleum Act 1923 or the Petroleum and Gas (Production and 9
Safety) Act 2004'. 10
PART 17--AMENDMENT OF LAND AND RESOURCES 11
TRIBUNAL ACT 1999 12
941 Act amended in pt 17 13
This part amends the Land and Resources Tribunal Act 1999. 14
942 Amendment of sch 1 (Requirements for constituting tribunal) 15
Schedule 1-- 16
insert-- 17
`PETROLEUM AND GAS (PRODUCTION AND SAFETY) 18
ACT 2004 19
`For all matters within the tribunal's jurisdiction, the tribunal is to be 20
constituted by a presiding member.'. 21
s 943 533 s 946
Petroleum and Gas (Production and Safety) Bill 2004
PART 18--AMENDMENT OF LAND PROTECTION 1
(PEST AND STOCK ROUTE MANAGEMENT) ACT 2002 2
943 Act amended in pt 18 3
This part amends the Land Protection (Pest and Stock Route 4
Management) Act 2002. 5
944 Amendment of sch 3 (Dictionary) 6
Schedule 3, definition "owner", paragraph (a)(iv), after `Petroleum Act 7
1923'-- 8
insert-- 9
`or the Petroleum and Gas (Production and Safety) Act 2004'. 10
PART 19--AMENDMENT OF LAND TITLE ACT 1994 11
945 Act amended in pt 19 12
This part amends the Land Title Act 1994. 13
946 Amendment of s 185 (Exceptions to s 184) 14
Section 185(1)-- 15
insert-- 16
`(h) the interest of a petroleum authority holder under the Petroleum 17
and Gas (Production and Safety) Act 2004 under an access 18
agreement under that Act that-- 19
(i) was made before the registered proprietor became the 20
registered proprietor of the lot; and 21
(ii) under that Act, binds the registered proprietor.635'. 22
635 For when the access agreement binds the registered proprietor, see the Petroleum
and Gas (Production and Safety) Act 2004, sections 507 (Access agreement binds
successors and assigns) and 509 (Power of tribunal to vary access agreement).
s 947 534 s 950
Petroleum and Gas (Production and Safety) Bill 2004
PART 20--AMENDMENT OF LOCAL GOVERNMENT 1
ACT 1993 2
947 Act amended in pt 20 3
This part amends the Local Government Act 1993. 4
948 Amendment of s 4 (Meaning of "owner" of land) 5
Section 4(1)(e), after `Petroleum Act 1923'-- 6
insert-- 7
`or the Petroleum and Gas (Production and Safety) Act 2004'. 8
PART 21--AMENDMENT OF MINERAL RESOURCES 9
ACT 1989 10
949 Act amended in pt 21 11
This part amends the Mineral Resources Act 1989. 12
950 Insertion of new s 3A 13
After section 3-- 14
insert-- 15
`3A Relationship with petroleum legislation 16
`(1) This section does not apply to a coal or oil shale mining tenement.636 17
`(2) Subject to subsections (3) to (9), the Petroleum Act 1923 and the 18
Petroleum and Gas (Production and Safety) Act do not limit or otherwise 19
affect-- 20
636 See also the Petroleum and Gas (Production and Safety) Act, section 6 (Relationship
with Mineral Resources Act).
For the relationship between this Act and the Petroleum and Gas (Production and
Safety) Act in relation to coal or oil shale mining tenements, see part 7AA
(Provisions for coal seam gas).
s 950 535 s 950
Petroleum and Gas (Production and Safety) Bill 2004
(a) the power under this Act to grant or renew a mining tenement 1
over land (the "overlapping land") in the area of a petroleum 2
tenure; or 3
(b) a mining tenement already granted over land (also the 4
"overlapping land") in the area of an existing petroleum tenure. 5
`(3) If the petroleum tenure is a petroleum lease and the mining tenement 6
is an exploration permit, mineral development licence, or mining lease, an 7
authorised activity for the mining tenement may be carried out on the 8
overlapping land only if-- 9
(a) the petroleum lease holder has agreed in writing to the carrying 10
out of the activity; and 11
(b) a copy of the agreement has been lodged at the following office 12
(the "relevant office")-- 13
(i) the office of the department for lodging the agreement, as 14
stated in a gazette notice by the chief executive; 15
(ii) if no office is gazetted under subparagraph (i)--the office of 16
the chief executive; and 17
(c) the agreement is still in force. 18
`(4) If the petroleum tenure is a petroleum lease and the mining tenement 19
is a prospecting permit or mining claim, an authorised activity for the 20
mining tenement may be carried out on the overlapping land only if 21
carrying out the activity does not adversely affect the carrying out of an 22
authorised activity for the petroleum lease. 23
`(5) Subsection (4) applies whether or not the authorised activity for the 24
petroleum lease has already started. 25
`(6) If the petroleum tenure is an authority to prospect and the mining 26
tenement is not a mining lease, an authorised activity for the mining 27
tenement may be carried out on the overlapping land only if-- 28
(a) the authority to prospect holder has agreed in writing to the 29
carrying out of the activity, a copy of the agreement has been 30
lodged at the relevant office and the agreement is still in force; or 31
(b) carrying out the activity does not adversely affect the carrying 32
out of an authorised activity for the authority to prospect that has 33
already started. 34
s 951 536 s 951
Petroleum and Gas (Production and Safety) Bill 2004
`(7) If the petroleum tenure is an authority to prospect and the mining 1
tenement is a mining lease, an authorised activity for the authority to 2
prospect may be carried out on the overlapping land only if-- 3
(a) the mining lease holder has agreed in writing to the carrying out 4
of the activity; and 5
(b) a copy of the agreement has been lodged at the relevant office; 6
and 7
(c) the agreement is still in force. 8
`(8) Subsection (7) does not apply, or ceases to apply, if the same person 9
holds the authority and the mining lease. 10
`(9) This section applies despite any other provision of this Act.'. 11
951 Insertion of new s 6 12
After section 5-- 13
insert-- 14
`6 Meaning of "mineral" 15
`(1) A "mineral" is a substance-- 16
(a) normally occurring naturally as part of the earth's crust; or 17
(b) dissolved or suspended in water on or within the earth's crust; or 18
(c) that may be extracted from a substance mentioned in 19
paragraph (a) or (b). 20
`(2) Subject to subsection (3), each of the following is a "mineral"-- 21
(a) any type of clay; 22
(b) foundry sand; 23
(c) coal seam gas;637 24
(d) limestone; 25
(e) marble; 26
637 See section 318AC (What is "coal seam gas" and "incidental coal seam gas").
See also part 7AA, division 8, subdivision 1 (Entitlement to coal seam gas).
s 952 537 s 952
Petroleum and Gas (Production and Safety) Bill 2004
(f) a product that may be extracted or produced by an underground 1
gasification process for coal or oil shale and another product that 2
may result from the carrying out of the process; 3
4
Example of underground gasification processes--
5
combustion, consumption, heating, leaching and reaction
6
Example of another product--
7
gas desorbed as a result of an underground gasification process
(g) peat; 8
(h) salt, including brine; 9
(i) oil shale;638 10
(j) silica, including silica sand; 11
(k) rock mined in block or slab form for building or monumental 12
purposes. 13
`(3) Despite subsections (1) and (2)-- 14
(a) clay (other than kaolin and bentonite) is only a mineral if it is 15
mined for use for its ceramic properties; and 16
17
Examples of uses of clay for its ceramic properties--
18
· for brick or tile making
19
· for pottery making
(b) limestone, silica and silica sand is only a mineral if it is mined 20
for use for its chemical properties; and 21
(c) each of the following is not a mineral-- 22
(i) soil, sand, gravel or rock (other than rock mentioned in 23
subsection (2)(k) if it is to be used, or to be supplied for use, 24
as sand, gravel or rock, whether intact or in broken form; 25
(ii) living matter; 26
(iii) steam or water.'. 27
952 Insertion of new s 6D 28
After section 6C-- 29
638 See section 318AD (What is "oil shale").
s 953 538 s 955
Petroleum and Gas (Production and Safety) Bill 2004
insert-- 1
`6D Notes in text 2
`A note in the text of this Act is part of this Act.'. 3
953 Amendment of s 234 (Governor in Council may grant mining 4
lease) 5
(1) Section 234-- 6
insert-- 7
`(1A) However, coal seam gas can not be specified in a mining lease.639'. 8
(2) Section 234(2), `However'-- 9
omit, insert-- 10
`Also'. 11
(3) Section 234(1A) to (3)-- 12
renumber as section 234(2) to (4). 13
954 Amendment of s 235 (Entitlements of holder of mining lease) 14
(1) Section 235, heading-- 15
omit, insert-- 16
`235 General entitlements of holder of mining lease'. 17
(2) Section 235(1), `During'-- 18
omit, insert-- 19
`Subject to section 236 and part 7AA, division 8, subdivision 1,640
during'. 20
955 Amendment of s 245 (Application for grant of mining lease) 21
After section 245(1)-- 22
639 For the entitlement of a coal mining lease holder or an oil shale mining lease holder
to mine coal seam gas, see section 318CM (Limited entitlement to mine coal seam
gas).
640 Part 7AA, division 8 (Additional provisions for coal mining leases and oil shale
mining leases), subdivision 1 (Entitlement to coal seam gas)
s 956 539 s 959
Petroleum and Gas (Production and Safety) Bill 2004
insert-- 1
`(1A) However, subsection (1)(o)(iii)(A) does not apply if, under 2
part 7AA,641 the application includes a proposed development plan that 3
complies with the initial development plan requirements.'. 4
956 Amendment of s 269 (Tribunal's recommendation on hearing) 5
Section 269-- 6
insert-- 7
`(6) If-- 8
(a) the application is for the grant of a coal mining lease; and 9
(b) under section 318BA,642 a preference decision is required; 10
the tribunal can not recommend that the lease not be granted so as to give 11
preference to petroleum development.'. 12
957 Amendment of s 271 (Minister to consider recommendation made 13
in respect of application for grant of mining lease) 14
Section 271(3), `subsection (1A)(c)'-- 15
omit, insert-- 16
`subsection (1)(c)'. 17
958 Amendment of s 276 (Conditions of mining lease) 18
Section 276, heading-- 19
omit, insert-- 20
`276 General conditions of mining lease'. 21
959 Amendment of s 298 (Mining other minerals or use for other 22
purposes) 23
Section 298(1), after `specified minerals', first mention-- 24
641 Part 7AA (Provisions for coal seam gas)
642 Section 318BA (When preference decision is required)
s 960 540 s 960
Petroleum and Gas (Production and Safety) Bill 2004
insert-- 1
`(other than coal seam gas)643'. 2
960 Insertion of new pt 7AA 3
After part 7-- 4
insert-- 5
`PART 7AA--PROVISIONS FOR COAL SEAM GAS 6
`Division 1--Preliminary 7
`Subdivision 1--Introduction 8
`318A Main purposes of pt 7AA 9
`The main purposes of this part are to-- 10
(a) clarify rights under this Act to mine coal seam gas;644 and 11
(b) address issues arising for coal seam gas mining under this Act, 12
and, in particular, issues arising when a coal mining lease or an 13
oil shale mining lease and a petroleum lease are granted over the 14
same area; and 15
(c) provide security of tenure to protect existing operations and 16
investments relating to coal, oil shale and petroleum;645 and 17
(d) provide certainty of tenure for future investments relating to coal, 18
oil shale and petroleum; and 19
(e) optimise the development and use of the State's coal, oil shale 20
and petroleum resources to maximise the benefit for all 21
Queenslanders; and 22
643 For coal seam gas, see part 7AA, division 8 (Additional provisions for coal mining
leases and oil shale mining leases), subdivision 1 (Entitlement to coal seam gas).
644 For the limited entitlement to mine coal seam gas under this Act, see division 8
(Additional provisions for coal mining leases and oil shale mining leases),
subdivision 1 (Entitlement to coal seam gas).
645 For existing operations, see also part 19, division 6 (Transitional provisions for
Petroleum and Gas (Production and Safety) Act 2004.
s 960 541 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(f) ensure, if it is commercially and technically feasible, the grant of 1
coal mining leases and oil shale mining leases that may affect 2
petroleum exploration or production, or proposed petroleum 3
exploration or production, optimises the commercial use of coal, 4
oil shale and petroleum resources in a safe and efficient way.646 5
`318AA How main purposes are achieved 6
`(1) The main purposes of this part are achieved by-- 7
(a) ensuring commercial coal seam gas production (other than for 8
use for mining under a coal mining lease or an oil shale mining 9
lease) is carried out under a relevant petroleum lease;647 and 10
(b) providing for processes to decide the priority of overlapping coal 11
mining leases or oil shale mining leases and petroleum tenure 12
applications or potential applications; and 13
(c) imposing additional requirements for deciding the overlapping 14
applications; and 15
(d) requiring proposed development plans to accompany all coal 16
mining lease and oil shale mining lease applications; and 17
(e) imposing restrictions on the authorised activities for particular 18
coal or oil shale mining tenements; and 19
(f) imposing additional-- 20
(i) requirements relating to development plans for coal mining 21
leases and oil shale mining leases; and 22
(ii) conditions on coal or oil shale mining tenements. 23
`(2) The following are also relevant to the achievement of the purposes-- 24
(a) section 3A and part 19, division 6; 648
25
646 For provisions regulating the safety of coal seam gas exploration or production, see
the Coal Mining (Safety and Health) Act 1999 and the Petroleum and Gas
(Production and Safety) Act, chapter 9 (Safety).
647 See however, part 19, division 6 (Transitional provisions for Petroleum and Gas
(Production and Safety) Act 2004).
648 Section 3A (Relationship with petroleum legislation)
Part 19, division 6 (Transitional provisions for Petroleum and Gas (Production and
Safety) Act 2004)
s 960 542 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) the Petroleum and Gas (Production and Safety) Act, section 10, 1
chapter 2, part 8 and chapter 3.649 2
`318AB Relationship with pts 5-7 3
`(1) Requirements and restrictions under this part apply as well as any 4
relevant requirements and restrictions under parts 5 to 7. 5
`(2) If this part imposes a requirement for, or a restriction on, the 6
granting, renewal, consolidation, assignment or subleasing of a coal or oil 7
shale mining tenement, the mining tenement can not be granted, renewed, 8
consolidated, assigned or subleased if the restriction applies or if the 9
requirement has not been met. 10
`(3) If this part imposes a requirement for, or a restriction on, the 11
carrying out of an authorised activity for a coal or oil shale mining 12
tenement, despite parts 5 to 7, the activity is not an authorised activity for 13
the tenure while the restriction applies or if the requirement has not been 14
met. 15
`(4) If a provision of this part conflicts with a provision of parts 5 to 7, 16
the provision of this part prevails to the extent of the inconsistency. 17
`Subdivision 2--Definitions for part 7AA 18
`318AC What is "coal seam gas" and "incidental coal seam gas" 19
`(1) "Coal seam gas" is a substance (in any state) occurring naturally in 20
association with coal or oil shale, or with strata associated with coal or oil 21
shale mining, if the substance is petroleum under the Petroleum and Gas 22
(Production and Safety) Act.650 23
`(2) "Incidental coal seam gas" is defined in section 318CM(2).651 24
649 Petroleum and Gas (Production and Safety) Act, section 10 (Meaning of
"petroleum"), chapter 2, part 8 (Petroleum activities coordination) and chapter 3
(Provisions for coal seam gas)
650 See the Petroleum and Gas (Production and Safety) Act, section 10 (Meaning of
"petroleum").
651 Section 318CM (Limited entitlement to mine coal seam gas)
s 960 543 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318AD What is "oil shale" 1
` "Oil shale" is shale or other rock (other than coal) from which a 2
gasification or retorting product, as defined in the Petroleum and Gas 3
(Production and Safety) Act, may be extracted or produced. 4
`318AE What is a "coal exploration tenement", a "coal mining lease" 5
and a "special coal mining lease" 6
`(1) A "coal exploration tenement" is an exploration permit or mineral 7
development licence granted for coal. 8
`(2) A "coal mining lease" is-- 9
(a) a mining lease for coal; or 10
(b) a mining lease or special coal mining lease granted under any of 11
the following Acts, an agreement provided for under any of the 12
Acts or any amendment of an agreement provided for under any 13
of the Acts-- 14
(i) the Central Queensland Coal Associates Agreement Act 15
1968; 16
(ii) the Thiess Peabody Mitsui Coal Pty. Ltd. Agreements Acts 17
1962 to 1965;652 or 18
(c) a specific purpose mining lease for a purpose associated with, 19
arising from or promoting the activity of coal mining, whether or 20
not it is also granted for a purpose other than coal mining. 21
`(3) Subsections (1) and (2)(a) apply whether or not the permit, licence 22
or lease is also granted for another mineral. 23
`318AF What is an "oil shale exploration tenement" and an "oil shale 24
mining lease" 25
`(1) An "oil shale exploration tenement" is an exploration permit or 26
mineral development licence granted for oil shale. 27
`(2) An "oil shale mining lease" is-- 28
(a) a mining lease for oil shale; or 29
652 For specific provisions dealing with mining leases mentioned in paragraph (b), see
subdivision 3 (Relationship with particular special agreement Acts).
s 960 544 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) a specific purpose mining lease for a purpose associated with, 1
arising from or promoting the activity of oil shale mining, 2
whether or not it is also granted for a purpose other than oil shale 3
mining. 4
`(3) Subsections (1) and (2)(a) apply whether or not the permit, licence 5
or lease is also granted for another mineral. 6
`318AG What is a "coal or oil shale mining tenement" 7
`A "coal or oil shale mining tenement" is-- 8
(a) a coal or oil shale exploration tenement; or 9
(b) a coal mining lease or an oil shale mining lease. 10
`318AH What is a "development plan" and its "plan period" 11
`(1) The "development plan", for a coal mining lease or an oil shale 12
mining lease, is its current initial or later development plan, as approved 13
under division 9.653 14
`(2) For subsection (1), the development plan is current if the period to 15
which the plan applies has started and has not ended.654 16
`(3) The period to which a development plan applies is its "plan 17
period". 18
`318AI Petroleum tenures 19
`(1) A "petroleum lease" is a petroleum lease under the Petroleum Act 20
1923 or the Petroleum and Gas (Production and Safety) Act. 21
`(2) An "authority to prospect" is an authority to prospect under the 22
Petroleum Act 1923 or the Petroleum and Gas (Production and Safety) Act. 23
`(3) A "petroleum tenure" is an authority to prospect or a petroleum 24
lease. 25
653 Division 9 (Development plans for coal mining leases and oil shale mining leases)
654 See also sections 318DK (Mining lease taken to have development plan until
renewal application decided) and 318EE (Mining lease taken to have development
plan until decision on whether to approve proposed later development plan).
s 960 545 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318AJ What is a "coordination arrangement" 1
`A "coordination arrangement" is a coordination arrangement under 2
the Petroleum and Gas (Production and Safety) Act. 3
`318AK What is "the public interest" 4
` "The public interest" is a consideration of each of the following-- 5
(a) government policy; 6
(b) value of commodity production (including time value); 7
(c) employment creation; 8
(d) total return to the State and to Australia (including royalty and 9
rent), assessed on both a direct and indirect basis, so that, for 10
example, downstream value adding is included; 11
(e) social impacts; 12
(f) the overall economic benefit for the State, or a part of the State, 13
in the short and long term. 14
`Subdivision 3--Relationship with particular special agreement Acts 15
`318AL Application of pt 7AA to grant of special coal mining lease 16
under Central Queensland Coal Associates Agreement Act 1968 17
`(1) This part applies to the granting of a special coal mining lease under 18
the Central Queensland Coal Associates Agreement Act 1968 (the "CQCA 19
Act"). 20
`(2) If this part imposes a requirement for, or a restriction on, the 21
granting of a special coal mining lease under the CQCA Act, the lease can 22
not be granted if the restriction applies or if the requirement has not been 23
met. 24
`(3) For this section, the grant of a lease includes an addition to the land 25
subject to an existing special coal mining lease granted under the special 26
agreement Act. 27
`(4) This section applies despite any provision of the CQCA Act. 28
s 960 546 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318AM Part prevails over special agreement Acts 1
`If a provision of this part conflicts with a provision of an Act or 2
agreement mentioned in section 318AE(2)(b),655 the provision of this part 3
prevails to the extent of the inconsistency. 4
`318AN No compensation 5
`(1) No amount, whether by way of compensation, reimbursement or 6
otherwise is payable by the State to any person for or in connection with 7
the enactment or operation of this subdivision or section 318AE(2)(b). 8
`(2) Subsection (1) applies despite any provision of a special agreement 9
Act and despite any other Act or law. 10
`Division 2--Obtaining coal mining lease or oil shale mining lease over 11
land in area of authority to prospect (other than by or jointly with, or 12
with the consent of, authority to prospect holder) 13
`Subdivision 1--Preliminary 14
`318AO Application of div 2 15
`(1) This division applies if a person wishes to apply for a coal mining 16
lease or an oil shale mining lease for all or part of the land in the area of an 17
authority to prospect. 18
`(2) However, this division does not apply if-- 19
(a) the person is the authority to prospect holder; or 20
(b) if the application is to be made jointly with the holder; or 21
(c) the application is made with the holder's written consent; or 22
655 Section 318AE(2) (What is a "coal exploration tenement", a "coal mining lease" and
a "special coal mining lease")
s 960 547 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(d) the land is also in the area of a petroleum lease and the same 1
person holds the authority to prospect and the petroleum lease.656 2
`Subdivision 2--Provisions for making coal mining lease or oil shale 3
mining lease application 4
`318AP Additional requirements for making application 5
`(1) The application must include-- 6
(a) a statement (a "CSG statement") assessing-- 7
(i) the likely effect of proposed coal mining on the future 8
development of petroleum production from the land; and 9
(ii) the technical and commercial feasibility of coordinated 10
petroleum production and coal or oil shale mining from the 11
land; and 12
(b) a proposed development plan that complies with the initial 13
development plan requirements;657 and 14
(c) other information that addresses the matters mentioned in 15
subsection (2) (the "CSG assessment criteria"). 16
`(2) The CSG assessment criteria are-- 17
(a) the initial development plan requirements; and 18
(b) the legitimate business interests of the applicant and the authority 19
to prospect holder (the "parties"); and 20
21
Examples of a party's legitimate business interests--
22
1. contractual obligations
656 For the circumstances mentioned in subsection (2)(a) to (c), see division 3
(Obtaining coal mining lease or oil shale mining lease over land in area of authority
to prospect (by or jointly with, or with the consent of, authority to prospect holder))
For the circumstance mentioned in subsection (2)(c), see division 5 (Obtaining coal
mining lease or oil shale mining lease over land in area of petroleum lease (other
than by or jointly with petroleum lease holder)) and section 318BW (Application of
div 5).
See however section 318BY(2) (Power to split application if it includes other land).
657 See division 9, subdivision 2 (Requirements for proposed initial development plans)
s 960 548 s 960
Petroleum and Gas (Production and Safety) Bill 2004
1
2. the effect on, and use of, existing infrastructure or mining or
2
production facilities
3
3. exploration expenditure on relevant overlapping tenures
(c) the effect of the proposed mining lease on the future 4
development of petroleum resources in the land, including for 5
example, each of the following-- 6
(i) the proposed timing and rate of coal or oil shale mining and 7
the development of petroleum from the land; 8
(ii) the potential for the parties to make a coordination 9
arrangement about-- 10
(A) coal or oil shale mining and any incidental coal seam 11
gas mining under the proposed mining lease; and 12
(B) petroleum production under any future petroleum lease 13
over the land; 14
(iii) the attempts required of the applicant under 15
section 318AT(1)(b);658 16
(iv) the economic and technical viability of the concurrent or 17
coordinated coal or oil shale mining and the development of 18
any petroleum from the land; 19
(v) the extent, nature and value of coal or oil shale mining and 20
the development of any petroleum in the land; and 21
(d) the public interest in coal or oil shale mining and petroleum 22
production from the land, having regard to the public interest. 23
`(3) For subsection (2), if the proposed mining lease is to be granted 24
under section 234(1)(b)659 for a purpose associated with, arising from or 25
promoting the activity of mining, a reference to mining in the land includes 26
a reference to mining in other land associated with the lease. 27
658 Section 318AT (Applicant's obligations)
659 Section 234(1)(b) (Governor in Council may grant mining lease).
s 960 549 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`Subdivision 3--Provisions for splitting application in particular 1
circumstances 2
`318AQ Requirement to split application if it relates to petroleum 3
lease and authority to prospect not held by same person 4
`(1) This section applies if the application is-- 5
(a) for land in the area of each of the following-- 6
(i) the authority to prospect (the "authority to prospect 7
part"); 8
(ii) a petroleum lease (the "petroleum lease part"); and 9
(b) the authority to prospect and the petroleum lease are not held by 10
the same person.660 11
`(2) The application must be treated as if it were separate applications for 12
the authority to prospect part and the petroleum lease part. 13
`(3) The application for the authority to prospect part must be decided 14
under this division. 15
`(4) The application for the petroleum lease part must be decided under 16
division 5 or 6.661 17
`(5) Despite subsections (2) to (4), a certificate of application under 18
section 252662 can not be issued for either application until the relevant 19
requirements for making the application have been complied with. 20
`(6) The applicant may amend each application to comply with the 21
requirements. 22
660 If the authority to prospect and the petroleum lease are held by the same person, see
division 6 (Obtaining coal mining lease or oil shale mining lease over land in area of
petroleum lease (by or jointly with petroleum lease holder)) and section 318CC
(Application of div 6).
661 Division 5 (Obtaining coal mining lease or oil shale mining lease over land in area
of petroleum lease (other than by or jointly with petroleum lease holder)) or 6
(Obtaining coal mining lease or oil shale mining lease over land in area of petroleum
lease (by or jointly with petroleum lease holder))
662 Section 252 (Certificate of application etc.)
s 960 550 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318AR Power to split application if it includes other land 1
`(1) This section applies if the application includes land (the "other 2
part") not in the area of another petroleum tenure. 3
`(2) The Minister may decide to treat the application to the extent it 4
applies to the other part as if it were a separate mining lease application. 5
`(3) The separate application must be decided under part 7.663 6
`(4) Despite subsections (2) and (3), a certificate of application under 7
section 252 can not be issued for either application until the relevant 8
requirements for making the application have been complied with. 9
`(5) The applicant may amend each application to comply with the 10
requirements. 11
`318AS Power to split application at applicant's request 12
`(1) The Minister may, at the applicant's request, decide to treat the 13
application as if it were separate mining lease applications to allow them to 14
be decided under this part or part 7, as the Minister considers appropriate. 15
`(2) However, a certificate of application under section 252 can not be 16
issued for either application until the relevant requirements for making the 17
application have been complied with. 18
`(3) The applicant may amend each application to comply with the 19
requirements. 20
`Subdivision 4--Obligations of applicant and authority to 21
prospect holder 22
`318AT Applicant's obligations 23
`(1) The applicant must-- 24
(a) within 10 business days after making the application, give the 25
authority to prospect holder a copy of the application, other than 26
the part of the application consisting of the statement mentioned 27
in section 245(1)(o)(iv);664 and 28
663 Part 7 (Mining leases)
664 Section 245 (Application for grant of mining lease)
s 960 551 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) use reasonable attempts to-- 1
(i) consult with the authority to prospect holder about the 2
applicant's proposed development plan; and 3
(ii) make an appropriate arrangement with the authority to 4
prospect holder about testing for petroleum production 5
carried out, or proposed to be carried out, by the authority to 6
prospect holder (a "testing arrangement");665 and 7
8
Example of testing--
9
production testing
(c) change the proposed development plan to give effect to any 10
reasonable proposal by the authority to prospect holder that will 11
optimise petroleum production under any future petroleum lease 12
over the land; and 13
(d) within 4 months after making the application, lodge a written 14
notice stating each of the following-- 15
(i) the details of the consultation; 16
(ii) the results of the consultation; 17
(iii) any comments the applicant wishes to make about any 18
submissions lodged by the authority to prospect holder, 19
under section 318AX;666 20
(iv) any changes to the proposed development plan; 21
(v) if a testing arrangement has been made--details of the 22
arrangement; 23
(vi) if a testing arrangement has not been made--details of the 24
the attempts made to make a testing arrangement; 25
(vii) the applicant's assessment of the potential of the applicant 26
and the authority to prospect holder to make a coordination 27
arrangement about-- 28
(A) coal or oil shale mining and any incidental coal seam 29
gas mining under the proposed mining lease; and 30
(B) petroleum production under any future petroleum lease 31
over the land. 32
665 See also division 10 (Confidentiality of information).
666 Section 318AX (Submissions by authority to prospect holder)
s 960 552 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`(2) However, the obligations under subsection (1)(b)(iii) and (ba) apply 1
only to the extent the provisions or arrangement are commercially and 2
technically feasible for the applicant. 3
`(3) For subsection (1)(b)(iii), it is appropriate for the agreement to give 4
the authority to prospect holder the right to carry out testing for petroleum 5
production to help the holder make, or allow the deciding of, an application 6
under the Petroleum and Gas (Production and Safety) Act, chapter 2, part 1, 7
division 6.667 8
`(4) However, subsection (3) does not require the applicant to agree to 9
testing having a duration of more than 12 months. 10
(5) A notice under subsection (1)(d) must be lodged at-- 11
(a) the office of the department for lodging the notice, as stated in a 12
gazette notice by the chief executive; or 13
(b) if no office is gazetted under paragraph (a)--the office of the 14
chief executive. 15
`318AU Minister may require further negotiation 16
`(1) The Minister may, after receiving the notice under 17
section 318AT(1)(d), require the applicant to conduct negotiations with the 18
authority to prospect holder with a view to-- 19
(a) making a testing arrangement mentioned in 20
section 318AT(1)(b)(ii); or 21
(b) making changes of a type mentioned in section 318AT(1)(c). 22
`(2) The applicant must use all reasonable attempts to comply with the 23
requirement. 24
`318AV Consequence of applicant not complying with obligations or 25
requirement 26
`If the Minister is reasonably satisfied the applicant has not complied 27
with an obligation under section 318AT or 318AU, the application may be 28
rejected.668 29
667 See chapter 2, part 1, division 6 (Potential commercial areas) of the Petroleum and
Gas (Production and Safety) Act.
668 See also division 10 (Confidentiality of information).
s 960 553 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318AW Authority to prospect holder's obligations 1
`The authority to prospect holder must-- 2
(a) within 20 business days after receiving a copy of the application, 3
give the applicant basic information the authority holder has 4
about the following that the applicant may reasonably need to 5
comply with section 318AT-- 6
(i) the type of exploration activities carried out, or proposed to 7
be carried out under the authority; 8
(ii) petroleum in the land; and 9
(b) after receiving a copy of the application, use reasonable attempts 10
to reach an agreement with the applicant, about the matters 11
mentioned in section 318AT(1)(b) and (c), that provides the best 12
resource use outcome without significantly affecting the parties' 13
rights or interests.669 14
`318AX Submissions by authority to prospect holder 15
`(1) The authority to prospect holder may lodge submissions about the 16
application at-- 17
(a) the office of the department for lodging the submissions, as 18
stated in a gazette notice by the chief executive; or 19
(b) if no office is gazetted under paragraph (a)--the office of the 20
chief executive. 21
`(2) However, the submissions may be lodged only within 3 months after 22
the holder is, under section 318AT(1)(a),670 given a copy of the application 23
(the "submission period"). 24
`(3) The submissions may-- 25
(a) state that the holder does not object to the granting of the 26
proposed mining lease; and 27
(b) state that the holder does not wish any preference for the future 28
development of petroleum production from the land 29
("petroleum development preference"); and 30
(c) include information about all or any of the following-- 31
669 See also division 10 (Confidentiality of information).
670 Section 318AT (Applicant's obligations)
s 960 554 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(i) exploration carried out under the authority; 1
(ii) the results of the exploration; 2
(iii) the prospects for future petroleum production from the land; 3
and 4
(d) include a proposal by the authority to prospect holder for 5
petroleum production from the land; and 6
(e) include information relevant to the CSG assessment criteria.671 7
`(4) The holder must give the applicant a copy of the submissions. 8
`(5) In deciding the application, regard must be had to the submissions. 9
`Subdivision 5--Priority for earlier petroleum lease application or 10
proposed application 11
`318AY Earlier petroleum lease application 12
`(1) If-- 13
(a) before the making of the mining lease application, a petroleum 14
lease application was made for the land; and 15
(b) the petroleum lease application complies with the Petroleum and 16
Gas (Production and Safety) Act; and 17
(c) the petroleum lease application has not been decided; 18
a certificate of public notice can not be issued for the mining lease 19
application until the petroleum lease application has been decided. 20
`(2) However, subsection (1) does not apply if-- 21
(a) the mining lease application was made in response to an 22
invitation in a notice given under the Petroleum and Gas 23
(Production and Safety) Act, section 323 and the application was 24
made within 6 months after the giving of the notice;672 or 25
671 See also division 10 (Confidentiality of information).
672 Petroleum and Gas (Production and Safety) Act, section 323 (Notice to applicant
and coal or oil shale exploration tenement holder)
s 960 555 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) the petroleum lease applicant has given written consent to the 1
mining lease application.673 2
`318AZ Proposed petroleum lease for which EIS approval given 3
`(1) This section applies if-- 4
(a) before the making of the mining lease application, an approval 5
under the Environmental Protection Act, chapter 3, part 2,674 was 6
granted for the voluntary preparation of an EIS for a project that 7
is, or includes, a proposed petroleum lease for the land; and 8
(b) the proponent for the EIS-- 9
(i) is, or includes, the authority to prospect holder; or 10
(ii) is someone else who has the authority holder's consent. 11
`(2) A certificate of public notice can not be issued for the mining lease 12
application until an application for the proposed petroleum lease is 13
decided. 14
`(3) However, subsection (2) ceases to apply if-- 15
(a) the proponent of the EIS does not make a petroleum lease 16
application for the land within 1 year after the granting of the 17
approval; or 18
(b) a petroleum lease application for the land is made within the 19
period mentioned in paragraph (a) and-- 20
(i) it does not comply with the Petroleum and Gas (Production 21
and Safety) Act; or 22
(ii) it is decided; or 23
(c) the proponent for the EIS has given written consent to the mining 24
lease application. 25
673 See however the Petroleum and Gas (Production and Safety) Act, chapter 3, part 2,
division 3 (Petroleum lease applications in response to Mineral Resources Act
preference decision).
See also the Petroleum and Gas (Production and Safety) Act, section 315 (Earlier
coal mining lease or oil shale mining lease application).
674 Environmental Protection Act, chapter 3, part 2 (Voluntary preparation of EIS)
s 960 556 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318B Proposed petroleum lease declared a significant project 1
`(1) This section applies if-- 2
(a) before the making of the mining lease application, a project is 3
declared a significant project under the State Development and 4
Public Works Organisation Act 1971 that is, or includes, a 5
proposed petroleum lease for the land;675 and 6
(b) the proponent for the significant project-- 7
(i) is, or includes, the authority to prospect holder; or 8
(ii) is someone else who has the authority holder's consent. 9
`(2) A certificate of public notice can not be issued for the mining lease 10
application until the application for the proposed petroleum lease is 11
decided. 12
`(3) However, subsection (2) ceases to apply if-- 13
(a) the proponent of the significant project does not make a 14
petroleum lease application for the land within 1 year after the 15
making of the declaration; or 16
(b) a petroleum lease application for the land is made within the 17
period mentioned in paragraph (a) and-- 18
(i) it does not comply with the Petroleum and Gas (Production 19
and Safety) Act; or 20
(ii) it is decided; or 21
(c) the proponent of the significant project has given written consent 22
to the mining lease application. 23
`Subdivision 6--Ministerial decision about whether to give any 24
preference to petroleum development 25
`318BA When preference decision is required 26
`(1) This subdivision applies for the application only if the Minister is 27
satisfied of each of the following-- 28
675 See the State Development and Public Works Organisation Act 1971, section 26
(Declaration of significant project).
s 960 557 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) there is a resource or reserve (the "deposit") of petroleum in the 1
land; 2
(b) the deposit has been identified under the relevant codes; 3
(c) there is an adequate level of knowledge about the deposit; 4
(d) the location, quantity, quality, geological characteristics and 5
continuity of the deposit are known, or have been estimated or 6
interpreted, from specific geological evidence and knowledge; 7
(e) there are reasonable prospects for the eventual economic 8
production of the deposit. 9
`(2) However, this subdivision does not apply if-- 10
(a) the authority to prospect holder has not complied with 11
section 318AW(a);676 or 12
(b) the authority to prospect holder has, under section 318AX,677 13
lodged a submission stating that the holder does not wish any 14
petroleum development preference for the land; or 15
(c) the authority to prospect holder has not lodged any submission 16
under section 318AX within the submission period. 17
`(3) If the Minister decides that the Minister is not satisfied as mentioned 18
in subsection (1), the authority holder must be given notice of the decision. 19
`(4) In this section-- 20
"relevant codes" means any of the following-- 21
(a) the following documents published by the Society of Petroleum 22
Engineers ("SPE"),678 as amended and published from time to 23
time-- 24
(i) the document called `Petroleum Resource Classifications 25
and Definitions'; 26
(ii) the document called `Petroleum Reserves Definitions' and 27
`Standards Pertaining to the Estimating and Auditing of Oil 28
and Gas Reserve Information'; 29
676 Section 318AW (Authority to prospect holder's obligations)
677 Section 318AX (Submissions by authority to prospect holder)
678 A copy of the document is available on the internet at
.
s 960 558 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) another document (however called) published by SPE that 1
amends or replaces the documents mentioned in paragraph (a); 2
(c) if a document mentioned in paragraph (a) or (b) stops being 3
published--another similar document prescribed under a 4
regulation. 5
6
Note--
7
1. If the Minister is not satisfied as mentioned in subsection (1), the application can
8
be decided under part 7.
9
2. If this subdivision does not apply because of subsection (2), the application can be
10
decided under part 7 and subdivision 8.679
`318BB Decision about whether to give any preference to petroleum 11
development 12
`(1) Subject to section 318BC, the Minister must decide whether to-- 13
(a) recommend, under section 271,680 the granting of the mining 14
lease; or 15
(b) give any petroleum development preference for the land, in 16
whole or part. 17
`(2) The decision under subsection (1) is the "preference decision". 18
`(3) In making the preference decision the CSG assessment criteria must 19
be considered. 20
`(4) If, under the Petroleum and Gas (Production and Safety) Act, 21
chapter 3, part 2, division 1, subdivision 6,681 coal or oil shale development 22
preference has been given for the land, the preference decision is taken to 23
be not to give any petroleum development preference for any of the land. 24
`318BC Reference to tribunal before making preference decision 25
`(1) Before making the preference decision-- 26
679 Part 7 (Mining leases) and subdivision 8 (Deciding mining lease)
680 Section 271 (Minister to consider recommendation made in respect of application
for grant of mining lease)
681 Petroleum and Gas (Production and Safety) Act, chapter 3, part 2, division 1,
subdivision 6 (Ministerial decision about whether to give any preference to
development of coal or oil shale resources)
s 960 559 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) the chief executive must refer the application to the tribunal for it 1
to make recommendations to the Minister about what the 2
preference decision should be; and 3
(b) the Minister must consider the recommendations. 4
`(2) The referral must be made by filing a notice in the approved form 5
with the registrar of the tribunal. 6
`(3) The referral starts a proceeding before the tribunal for it to make the 7
recommendations. 8
`(4) The parties to the proceeding are the applicant and the authority to 9
prospect holder. 10
`(5) In making the recommendations-- 11
(a) the CSG assessment criteria must be considered; and 12
(b) section 318BD applies as if a reference in the section-- 13
(i) to the Minister were a reference to the tribunal; and 14
(ii) to petroleum development preference were a reference to 15
recommending petroleum development preference. 16
`(6) The recommendations may also include recommendations about the 17
conditions and term of the mining lease. 18
`318BD Restrictions on giving preference 19
`(1) Petroleum development preference, in whole or part, may be given 20
only under this section. 21
`(2) Petroleum development preference may be given only if the 22
Minister is satisfied of each of the following-- 23
(a) on the basis of the submissions and the results of consultation 24
lodged under sections 318AT and 318AX,682 it is either not 25
commercially or technically feasible or it is unlikely that the 26
applicant and the authority holder are able to make a future 27
coordination arrangement about-- 28
(i) coal or oil shale mining and any incidental coal seam gas 29
mining under the proposed mining lease; and 30
682 Sections 318AT (Applicant's obligations) and 318AX (Submissions by authority to
prospect holder)
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Petroleum and Gas (Production and Safety) Bill 2004
(ii) petroleum production under any future petroleum lease for 1
the land; 2
(b) that, having regard to the public interest, the public interest in the 3
following would be best served by not granting a mining lease to 4
the mining lease applicant first-- 5
(i) coal or oil shale mining and any incidental coal seam gas 6
mining; 7
(ii) petroleum production; 8
(c) if the petroleum is a brownfield petroleum resource-- 9
(i) it is critical to the continuance of existing petroleum 10
production or processing or the efficient use of 11
infrastructure related to the production or processing; and 12
(ii) the applicant's proposed development plan is incompatible 13
with the future development of the resource; 14
(d) if the petroleum is a greenfield petroleum resource-- 15
(i) it is commercially viable; and 16
(ii) petroleum production will, if a petroleum lease is granted to 17
the authority to prospect holder, start within 2 years after the 18
grant of the lease. 19
`(3) In this section-- 20
"brownfield petroleum resource" means petroleum associated with, or 21
adjacent to, existing petroleum production or a processing operation 22
under the Petroleum and Gas (Production and Safety) Act. 23
"greenfield petroleum resource" means petroleum not associated with, or 24
adjacent to, existing petroleum production or a processing operation 25
under the Petroleum and Gas (Production and Safety) Act. 26
`318BE No certificate of public notice before preference decision 27
`A certificate of public notice can not be issued for the application until 28
the preference decision has been made. 29
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Petroleum and Gas (Production and Safety) Bill 2004
`Subdivision 7--Process if preference decision is to give any preference 1
to petroleum development 2
`318BF Application of sdiv 7 3
`This subdivision applies only if, under section 318BA,683 a preference 4
decision is required and that decision was to give petroleum development 5
preference for the whole or part of the land. 6
`318BG Notice to applicant and authority to prospect holder 7
`(1) The mining lease applicant and the authority to prospect holder must 8
be given written notice of the preference decision. 9
`(2) The notice must invite the authority to prospect holder to, within 10
6 months after the giving of the notice (the "petroleum lease application 11
period"), apply for a petroleum lease for-- 12
(a) if the preference is for all of the land--all of the land; or 13
(b) if the preference is for part of the land--that part. 14
`318BH Petroleum lease application for all of the land 15
`(1) This section applies if the preference is for all of the land and, within 16
the petroleum lease application period, the authority to prospect holder 17
applies for a lease for all of the land. 18
`(2) A further step can not be taken to decide the mining lease 19
application until after the petroleum lease application has been decided.684 20
`(3) If the decision on the petroleum lease application is to grant a 21
petroleum lease for all of the land, the mining lease application is taken to 22
have lapsed, unless the petroleum lease applicant has consented in writing 23
to the application. 24
683 Section 318BA (When preference decision is required)
684 See however the Petroleum and Gas (Production and Safety) Act, chapter 3, part 2,
division 3 (Petroleum lease applications in response to Mineral Resources Act
preference decision).
s 960 562 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318BI Petroleum lease application for part of the land 1
`(1) This section applies if the authority to prospect holder applies for a 2
petroleum lease for part of the land within the petroleum lease application 3
period. 4
`(2) The mining lease applicant may, by notice lodged with the mining 5
registrar, amend the mining lease application so that a mining lease is only 6
sought for all or part of the rest of the land. 7
`(3) Unless the amendment is made, a further step can not be taken to 8
decide the mining lease application until after the petroleum lease 9
application has been decided.685 10
`(4) If-- 11
(a) the amendment has not been made; and 12
(b) the decision on the petroleum lease application is to grant a 13
petroleum lease for part of the land; 14
the mining lease applicant may amend the mining lease application so that 15
a mining lease is only sought for all or part of the rest of the land.686 16
`318BJ No petroleum lease application 17
`If the authority to prospect holder does not apply for a petroleum lease 18
for any of the land within the petroleum lease application period, the 19
mining lease application may be decided. 20
`Subdivision 8--Deciding mining lease 21
`318BK Application of sdiv 8 22
`This subdivision applies if-- 23
(a) the authority to prospect holder has not complied with 24
section 318AW(a);687 or 25
685 See however the Petroleum and Gas (Production and Safety) Act, chapter 3, part 2,
division 3 (Petroleum lease applications in response to Mineral Resources Act
preference decision).
686 If the mining lease application is not amended, see section 318CB (Restriction on
issuing certificate of public notice and additional requirements for grant).
687 Section 318AW (Authority to prospect holder's obligations)
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Petroleum and Gas (Production and Safety) Bill 2004
(b) the authority to prospect holder has, under section 318AT,688 1
lodged a submission stating that the holder does not wish any 2
petroleum development preference for the land; or 3
(c) the authority to prospect holder has not lodged any submission 4
under section 318AX within the submission period; or 5
(d) under section 318BA,689 a preference decision is required and-- 6
(i) the preference decision was not to give petroleum 7
development preference for any of the land; or 8
(ii) the preference decision was to give petroleum development 9
preference for the whole or part of the land and, after 10
subdivision 7 is complied with, the Minister decides, under 11
section 271,690 to recommend the granting of a coal mining 12
lease or an oil shale mining lease for the land. 13
`318BL Additional criteria for recommending conditions or term 14
`(1) In making a recommendation as follows, regard must be had to the 15
CSG assessment criteria and the affect of the mining lease on safe and 16
efficient petroleum production under any adjacent lease-- 17
(a) recommending conditions of the mining lease, to be determined 18
under section 276(1)(n); and 19
(b) recommending, under section 284, the term of the lease.691 20
`(2) This section does not limit the power under section 276(1)(n) to 21
determine conditions of the mining lease. 22
`318BM Power to determine relinquishment condition 23
`(1) A condition of the mining lease determined under section 276(1)(n) 24
may be that its holder is required, by a notice lodged at the following office, 25
to relinquish a stated part or percentage of its area at stated times or 26
intervals-- 27
688 Section 318AX (Submissions by authority to prospect holder)
689 Section 318BA (When preference decision is required)
690 Section 271 (Minister to consider recommendation made in respect of application
for grant of mining lease)
691 Sections 276 (General conditions of mining lease) and 284 (Initial term of mining
lease)
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Petroleum and Gas (Production and Safety) Bill 2004
(a) the office of the department for lodging relinquishment notices, 1
as stated in a gazette notice by the chief executive; 2
(b) if no office is gazetted under paragraph (a)--the office of the 3
chief executive.692 4
`(2) A condition determined under subsection (1) is called 5
a "relinquishment condition".693 6
`(3) A relinquishment under a relinquishment condition takes effect on 7
the day after the notice is lodged. 8
`(4) This section does not limit the power under section 276(1)(n) to 9
determine conditions of the mining lease. 10
`318BN Publication of outcome of application 11
`(1) After the Governor in Council decides whether to grant the mining 12
lease, the chief executive must publish a notice about the outcome of the 13
application in the gazette or another publication the Minister considers 14
appropriate. 15
`(2) The notice must state-- 16
(a) whether the Governor in Council decided to grant, or not to 17
grant, the mining lease; and 18
(b) if the decision was to grant--the conditions decided by the 19
Governor in Council; and 20
(c) if, under section 318BA,694 a preference decision is required and 21
the preference decision was to give petroleum development 22
preference for the whole or part of the land--the decision, and 23
the reasons for it. 24
`(3) However, if the chief executive considers that information in any 25
condition is commercial-in-confidence, the chief executive may, instead of 26
publishing the condition, publish a statement about the intent of the 27
condition. 28
692 See however section 318CZ (Cessation of relinquishment condition for area not
overlapping with authority to prospect).
693 See also section 318CX (Relinquishment report).
694 Section 318BA (When preference decision is required)
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Petroleum and Gas (Production and Safety) Bill 2004
`Division 3--Obtaining coal mining lease or oil shale mining lease over 1
land in area of authority to prospect (by or jointly with, or with the 2
consent of, authority to prospect holder) 3
`318BO Application of div 3 4
`(1) This division applies if-- 5
(a) land is in the area of an authority to prospect; and 6
(b) a person as follows wishes to apply for a coal mining lease or an 7
oil shale mining lease for all or part of the land-- 8
(i) the holder of a coal or oil shale exploration tenement or 9
prospecting permit; 10
(ii) a person who wishes to make the application jointly with 11
the exploration tenement or prospecting permit holder; and 12
(c) either-- 13
(i) the applicant is the authority holder; or 14
(ii) the authority holder has given written consent to the making 15
of the application. 16
`(2) However, this division does not apply if the land is also in the area of 17
a petroleum lease and the same person holds the authority to prospect and 18
the petroleum lease.695 19
`318BP Additional requirements for making application 20
`The application must include-- 21
(a) a CSG statement; and 22
(b) a proposed development plan that complies with the initial 23
development plan requirements;696 and 24
(c) other information that addresses the CSG assessment criteria. 25
695 For applications mentioned in subsection (2), see division 6 (Obtaining coal mining
lease or oil shale mining lease over land in area of petroleum lease (by or jointly
with petroleum lease holder)) and section 318CC (Application of div 6).
See however section 318CE(2) (Power to split application if it includes other land).
696 See division 9, subdivision 2 (Requirements for proposed initial development plans).
s 960 566 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318BQ Requirement to split application if it relates to petroleum 1
lease and authority to prospect not held by same person 2
`(1) This section applies if the application is-- 3
(a) for land in the area of each of the following-- 4
(i) the authority to prospect (the "authority to prospect 5
part"); 6
(ii) a petroleum lease (the "petroleum lease part"); and 7
(b) the authority to prospect and the petroleum lease are not held by 8
the same person.697 9
`(2) The application must be treated as if it were separate applications for 10
the authority to prospect part and the petroleum lease part. 11
`(3) The application for the authority to prospect part must be decided 12
under this division. 13
`(4) The application for the petroleum lease part must be decided under 14
division 5 or 6.698 15
`(5) Despite subsections (2) to (4), a certificate of application under 16
section 252699 can not be issued for either application until the relevant 17
requirements for making the application have been complied with. 18
`(6) The applicant may amend each application to comply with the 19
requirements. 20
`318BR Power to split application if it includes other land 21
`(1) This section applies if the application includes land (the "other 22
part") not in the area of another petroleum tenure. 23
`(2) The Minister may decide to treat the application to the extent it 24
applies to the other part as if it were a separate mining lease application. 25
697 If the authority to prospect and the petroleum lease are held by the same person, see
division 5 (Obtaining coal mining lease or oil shale mining lease over land in area of
petroleum lease (other than by or jointly with petroleum lease holder)) and
section 318BW (Application of div 5).
698 Division 5 (Obtaining coal mining lease or oil shale mining lease over land in area
of petroleum lease (other than by or jointly with petroleum lease holder)) or 6
(Obtaining coal mining lease or oil shale mining lease over land in area of petroleum
lease (by or jointly with petroleum lease holder))
699 Section 252 (Certificate of application etc.)
s 960 567 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`(3) The separate application must be decided under part 7.700 1
`(4) Despite subsections (2) and (3), a certificate of application under 2
section 252 can not be issued for either application until the relevant 3
requirements for making the application have been complied with. 4
`(5) The applicant may amend each application to comply with the 5
requirements. 6
`318BS Power to split application at applicant's request 7
`(1) The Minister may, at the applicant's request, decide to treat the 8
application as if it were separate mining lease applications to allow them to 9
be decided under this part or part 7, as the Minister considers appropriate. 10
`(2) However, a certificate of application under section 252701 can not be 11
issued for either application until the relevant requirements for making the 12
application have been complied with. 13
`(3) The applicant may amend each application to comply with the 14
requirements. 15
`318BT Priority for earlier petroleum lease application or proposed 16
application 17
`Division 2, subdivision 5,702 applies for the mining lease application. 18
`318BU Additional criteria for recommending conditions or term 19
`(1) In making a recommendation as follows, regard must be had to the 20
conditions of the authority to prospect, any future development proposals 21
of the authority to prospect holder and the likelihood of coordinated 22
production of petroleum under a future petroleum lease-- 23
(a) recommending conditions of the mining lease, to be determined 24
under section 276(1)(n); 25
700 Part 7 (Mining leases)
701 Section 252 (Certificate of application etc.).
702 Division 2, subdivision 5 (Priority for earlier petroleum lease application or
proposed application)
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Petroleum and Gas (Production and Safety) Bill 2004
(b) recommending, under section 284, the term of the lease.703 1
`(2) This section does not limit the power under section 276(1)(n) to 2
determine conditions for the mining lease. 3
`Division 4--Coal mining lease and oil shale mining lease applications 4
in response to Petroleum and Gas (Production and Safety) Act preference 5
decision 6
`318BV Additional ground for refusing application 7
`(1) This section applies if-- 8
(a) a coal mining lease or oil shale mining lease application is made 9
in response to an invitation given under the Petroleum and Gas 10
(Production and Safety) Act, section 323;704 and 11
(b) the application is made within 6 months after the giving of the 12
invitation.705 13
`(2) The Minister may refuse the application if satisfied the applicant has 14
not, in a timely manner, taken any step in relation to the application 15
required of the applicant under part 7 or this part. 16
`(3) Subsection (2) does not limit another ground for refusing the 17
application under part 7706 or this part. 18
703 Sections 276 (General conditions of mining lease) and 284 (Initial term of mining
lease)
704 Petroleum and Gas (Production and Safety) Act, section 323 (Notice to applicant
and coal or oil shale exploration tenement holder)
705 If the application is not made within the 6 months, see the Petroleum and Gas
(Production and Safety) Act, section 326 (No mining lease application).
706 Part 7 (Mining leases)
s 960 569 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`Division 5--Obtaining coal mining lease or oil shale mining lease over 1
land in area of petroleum lease (other than by or jointly with petroleum 2
lease holder) 3
`318BW Application of div 5 4
`(1) This division applies if a person wishes to apply for a coal mining 5
lease or an oil shale mining lease for all or part of the land in the area of a 6
petroleum lease. 7
`(2) However, this division does not apply if-- 8
(a) the person is the petroleum lease holder; or 9
(b) the application is to be made jointly with the holder.707 10
`(3) If-- 11
(a) the land is also in the area of an authority to prospect; and 12
(b) the same person holds the petroleum lease and the authority to 13
prospect; 14
a reference in this division to the petroleum lease holder includes a 15
reference to the authority to prospect holder.708 16
`318BX Additional requirements for making application 17
`The application must include-- 18
(a) a CSG statement; and 19
(b) a proposed development plan that complies with the initial 20
development plan requirements.709 21
707 See division 6 (Obtaining coal mining lease or oil shale mining lease over land in
area of petroleum lease (by or jointly with petroleum lease holder)).
708 If the petroleum lease and the authority to prospect are held by different persons, see
section 318BQ (Requirement to split application if it relates to petroleum lease and
authority to prospect not held by same person).
709 See division 9, subdivision 2 (Requirements for proposed initial development plans).
s 960 570 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318BY Power to split application if it includes other land 1
`(1) This section applies if the application includes land (the "other 2
part") in the area of an authority to prospect held by someone other than 3
the applicant. 4
`(2) The Minister may treat the application to the extent it applies to the 5
other part as if it were a separate mining lease application. 6
`(3) The separate application must be decided under division 2.710 7
`318BZ Power to split application at applicant's request 8
`(1) The Minister may, at the applicant's request, decide to treat the 9
application as if it were separate mining lease applications to allow them to 10
be decided under this part or part 7, as the Minister considers appropriate. 11
`(2) However, a certificate of application under section 252711 can not be 12
issued for either application until the relevant requirements for making the 13
application have been complied with. 14
`(3) The applicant may amend each application to comply with the 15
requirements. 16
`318C Notice to petroleum lease holder 17
`The applicant must, within 10 business days after lodging the 18
application, give the petroleum lease holder a copy of the application, other 19
than the part of the application consisting of the statement mentioned in 20
section 245(1)(o)(iv).712 21
`318CA Petroleum lease holder's obligation to negotiate 22
`(1) The petroleum lease holder must, after receiving the copy of the 23
application, use reasonable attempts to reach a coordination arrangement 24
with the applicant about the following matters that provides the best 25
710 Division 2 (Obtaining coal mining lease or oil shale mining lease over land in area
of authority to prospect (other than by or jointly with, or with the consent of,
authority to prospect holder))
711 Section 252 (Certificate of application etc.).
712 Section 245 (Application for grant of mining lease)
See also division 10 (Confidentiality of information).
s 960 571 s 960
Petroleum and Gas (Production and Safety) Bill 2004
resource use outcome without significantly affecting the parties' rights or 1
interests-- 2
(a) coal or oil shale mining and any incidental coal seam gas mining 3
under the proposed mining lease; 4
(b) petroleum production under the petroleum lease for the land.713 5
`(2) However, the obligation under subsection (1) applies only to the 6
extent that a coordination arrangement is commercially and technically 7
feasible for the petroleum lease holder.714 8
`318CB Restriction on issuing certificate of public notice and 9
additional requirements for grant 10
`(1) Section 252A715 does not apply for the application, and the Minister 11
can not under section 271716 recommend the grant of the mining lease 12
until-- 13
(a) the applicant has negotiated, with the petroleum lease holder, a 14
proposed coordination arrangement (a "relevant arrangement") 15
about the following matters-- 16
(i) coal or oil shale mining and any incidental coal seam gas 17
under the proposed mining lease; 18
(ii) petroleum production under the petroleum lease; and 19
(b) the Minister has approved the relevant arrangement; and 20
(c) there is a safety and health management system that applies for 21
the proposed mining lease; and 22
(d) the petroleum lease holder has lodged a notice that the holder has 23
agreed to the system. 24
`(2) Subsections (3) and (4) apply if the Minister is satisfied the 25
applicant and the petroleum lease holder have, as required under 26
713 For the extent to which coal seam gas production is permitted under the coal mining
lease or oil shale mining lease, see division 8, subdivision 1 (Entitlement to coal
seam gas).
714 See also division 10 (Confidentiality of information).
715 Section 252A (Issue of certificate of public notice)
716 Section 271 (Minister to consider recommendation made in respect of application
for grant of mining lease)
s 960 572 s 960
Petroleum and Gas (Production and Safety) Bill 2004
section 318CA, made reasonable attempts to reach a relevant arrangement 1
and-- 2
(a) the petroleum lease holder has lodged a written notice stating 3
there are no reasonable prospects of a relevant arrangement being 4
made; or 5
(b) a relevant arrangement has not been lodged for approval by the 6
Minister and the Minister considers the applicant and the 7
petroleum lease holder have had a reasonable opportunity to 8
make a relevant arrangement. 9
`(3) A certificate of public notice can not be issued for the application. 10
`(4) The Minister may immediately decide to reject the application. 11
`(5) A notice under this section must be lodged at-- 12
(a) the office of the department for lodging the notice, as stated in a 13
gazette notice by the chief executive; or 14
(b) if no office is gazetted under paragraph (a)--the office of the 15
chief executive 16
`(6) In this section-- 17
"safety and health management system" means-- 18
(a) for a coal mining lease--a safety and health management system 19
under the Coal Mining Safety and Health Act 1999; or 20
(b) for an oil shale mining lease--a safety and health management 21
system under the Mining and Quarrying Safety and Health Act 22
1999. 23
`Division 6--Obtaining coal mining lease or oil shale mining lease over 24
land in area of petroleum lease (by or jointly with petroleum lease 25
holder) 26
`318CC Application of div 6 27
`(1) This division applies if a person as follows wishes to apply for a coal 28
mining lease or an oil shale mining lease for all or part of the land in the 29
area of a petroleum lease-- 30
(a) the petroleum lease holder; 31
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Petroleum and Gas (Production and Safety) Bill 2004
(b) a person who wishes to make the application jointly with the 1
holder. 2
`(2) If-- 3
(a) the land is also in the area of an authority to prospect; and 4
(b) the same person holds the petroleum lease and the authority to 5
prospect; 6
a reference in this division to the petroleum lease holder includes a 7
reference to the authority to prospect holder.717 8
`318CD Additional requirements for making application 9
`The application must include-- 10
(a) a CSG statement; and 11
(b) a proposed development plan that complies with the initial 12
development plan requirements.718 13
`318CE Power to split application if it includes other land 14
`(1) This section applies if the application includes land (the "other 15
part") in the area of an authority to prospect held by someone other than 16
the applicant. 17
`(2) The Minister may treat the application to the extent it applies to the 18
other part as if it were a separate mining lease application. 19
`(3) The separate application must be decided under division 2.719 20
717 If the petroleum lease and the authority to prospect are held by different persons, see
section 318BQ (Requirement to split application if it relates to petroleum lease and
authority to prospect not held by same person).
718 See division 9, subdivision 2 (Requirements for proposed initial development plans).
719 Division 2 (Obtaining coal mining lease or oil shale mining lease over land in area
of authority to prospect (other than by or jointly with, or with the consent of,
authority to prospect holder))
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Petroleum and Gas (Production and Safety) Bill 2004
`318CF Power to split application at applicant's request 1
`(1) The Minister may, at the applicant's request, decide to treat the 2
application as if it were separate mining lease applications to allow them to 3
be decided under this part or part 7, as the Minister considers appropriate. 4
`(2) However, a certificate of application under section 252720 can not be 5
issued for either application until the relevant requirements for making the 6
application have been complied with. 7
`(3) The applicant may amend each application to comply with the 8
requirements. 9
`318CG Additional criteria for recommending conditions 10
`(1) In recommending conditions of the mining lease to be determined 11
under section 276(1)(n), regard must be had to-- 12
(a) the conditions of the petroleum lease; and 13
(b) the development plan for the petroleum lease. 14
`(2) This section does not limit the power under section 276(1)(n) to 15
determine conditions of the mining lease. 16
`Division 7--Additional provisions for coal and oil shale 17
exploration tenements 18
`Subdivision 1--Grant of coal or oil shale exploration tenement in area 19
of authority to prospect 20
`318CH Provisions for coal or oil shale exploration tenement 21
`(1) The Petroleum Act 1923 and the Petroleum and Gas (Production and 22
Safety) Act do not limit or otherwise affect the power under this Act to 23
grant a coal or oil shale exploration tenement over land (the "overlapping 24
land") in the area an authority to prospect. 25
`(2) However, an authorised activity for the coal or oil shale exploration 26
tenement can not be carried out on the overlapping land if-- 27
720 Section 252 (Certificate of application etc.)
s 960 575 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) carrying it out adversely affects the carrying out of an authorised 1
activity for the authority to prospect; and 2
(b) the authorised activity for the authority to prospect has already 3
started. 4
`Subdivision 2--Restriction on authorised activities on petroleum 5
lease land 6
`318CI Restriction 7
`(1) If land is in the area of a coal or oil shale exploration tenement and a 8
petroleum lease, an authorised activity for the tenement may be carried out 9
on the land only if-- 10
(a) the petroleum lease holder has agreed in writing to the carrying 11
out of the activity; and 12
(b) a copy of the agreement has been lodged at-- 13
(i) the office of the department for lodging the agreement, as 14
stated in a gazette notice by the chief executive; or 15
(ii) if no office is gazetted under subparagraph (i)--the office of 16
the chief executive; and 17
(c) the agreement is still in force. 18
`(2) Subsection (1) does not apply, or ceases to apply, if the same person 19
holds the tenement and the petroleum lease. 20
`Subdivision 3--Conditions 21
`318CJ Notice of grant to authority to prospect holder or applicant 22
`(1) This section applies if, when a coal or oil shale exploration tenement 23
is granted, land in the area of the tenement is in the area of an authority to 24
prospect or a proposed area under an authority to prospect application. 25
`(2) It is a condition of the tenement that its holder must, within 26
20 business days after receiving notice of the grant, give the authority to 27
prospect holder or the applicant written notice stating-- 28
(a) that the tenement has been granted; and 29
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Petroleum and Gas (Production and Safety) Bill 2004
(b) the tenement holder's name; and 1
(c) the term of the tenement. 2
`318CK Compliance with obligations under Petroleum and Gas 3
(Production and Safety) Act 4
`If an obligation under the Petroleum and Gas (Production and Safety) 5
Act, section 313 or 371,721 applies to a coal or oil shale exploration 6
tenement holder, it is a condition of the tenement that the holder must 7
comply with the obligation. 8
`Division 8--Additional provisions for coal mining leases and oil shale 9
mining leases 10
`Subdivision 1--Entitlement to coal seam gas 11
`318CL Application of div 8 12
`(1) This division applies to a person (the "mining lease holder") who 13
holds a coal mining lease or an oil shale mining lease.722 14
`(2) This subdivision is subject to subdivision 2.723 15
`318CM Limited entitlement to mine coal seam gas 16
`(1) The mining lease holder may mine coal seam gas in the area of the 17
lease only if-- 18
(a) the mining happens as a necessary result of coal or oil shale 19
mining carried out under the mining lease; or 20
721 Petroleum and Gas (Production and Safety) Act, section 313 (Obligations of coal or
oil shale exploration tenement holder) or 371 (Obligation of coal or oil shale
exploration tenement holder to negotiate)
722 See however part 19, division 6 (Transitional provisions for Petroleum and Gas
(Production and Safety) Act 2004).
723 Subdivision 2 (Provisions for mining coal seam gas from coextensive natural
underground reservoirs)
s 960 577 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) the mining is necessary to ensure a safe mine working 1
environment for coal or oil shale mining under the mining lease; 2
or 3
(c) the mining is necessary to minimise the fugitive emission of 4
methane during the course of coal mining operations. 5
`(2) Coal seam gas mined, or proposed to be mined, under subsection (1) 6
is called "incidental coal seam gas". 7
`(3) To remove any doubt, it is declared that incidental coal seam gas 8
includes coal seam gas in a goaf if the gas is mined, or proposed to be 9
mined, under subsection (1). 10
`(4) In this section-- 11
"mine", for coal seam gas, includes extract, produce, release or dispose of 12
the gas. 13
`318CN Use that may be made under mining lease of incidental coal 14
seam gas 15
`(1) Subject to section 318CO, the mining lease holder may do the 16
following in relation to incidental coal seam gas mined under 17
section 318CM in the area of the mining lease-- 18
(a) use it beneficially for mining under the mining lease; 19
20
Examples of possible uses of incidental coal seam gas for mining under the
21
mining lease--
22
1. power generation for equipment used for any mining on the mining
23
lease
24
2. heating
(b) transport or store it within the area of the mining lease to allow it 25
to be used under paragraph (a).724 26
`(2) The mining lease holder, can not, under the mining lease, use the 27
incidental coal seam gas for a purpose other than for mining under the 28
mining lease. 29
30
Examples of a purpose other than mining--
31
· selling the incidental coal seam gas
724 See also the exemptions in the Petroleum and Gas (Production and Safety) Act,
sections 800(2)(a) and (b) (Restriction on petroleum tenure activities) and 802
(Restriction on pipeline construction or operation).
s 960 578 s 960
Petroleum and Gas (Production and Safety) Bill 2004
1
· processing it
2
· transporting it, by way of a pipeline, outside the area of the mining lease
3
· using it for power generation and selling the power
4
Note--
5
1. If the mining lease holder wishes to use the incidental coal seam gas for a purpose
6
other than for mining under the mining lease, the holder may apply for a petroleum
7
lease. See the Petroleum and Gas (Production and Safety) Act, chapter 2, part 2,
8
division 1 and chapter 3, part 3, division 3.725
9
2. For the entitlement of a petroleum lease holder to use incidental or other coal seam
10
gas commercially, see the Petroleum and Gas (Production and Safety) Act,
11
chapter 2, part 2, division 1 and chapter 3, part 3, division 1.726
`(3) In this section-- 12
"mining", under the mining lease, includes mining for coal seam gas 13
authorised under section 318CM. 14
`318CO Restriction on flaring or venting of incidental coal seam gas 15
`(1) It is a condition of the mining lease that the mining lease holder 16
must not flare or vent incidental coal seam gas mined under 17
section 318CM(1) in the area of the mining lease unless the flaring or 18
venting is authorised under this section. 19
`(2) Flaring the incidental coal seam gas is authorised if it is not 20
commercially or technically feasible to use it-- 21
(a) beneficially for mining under the mining lease; or 22
(b) commercially under a petroleum lease that the holder might be 23
able to obtain. 24
`(3) Venting the incidental coal seam gas is authorised if-- 25
(a) it is not safe to use the gas for a purpose mentioned in subsection 26
(2) or to flare it; or 27
(b) flaring it is not technically practicable. 28
725 Petroleum and Gas (Production and Safety) Act, chapter 2, part 2, division 1 (Key
authorised activities) and chapter 3, part 3, division 3 (Petroleum lease application
by or jointly with coal mining lease holder or oil shale mining lease holder)
726 Petroleum and Gas (Production and Safety) Act, chapter 2, part 2, division 1 (Key
authorised activities) and chapter 3, part 5, division 1 (Restriction on authorised
activities for particular petroleum leases)
s 960 579 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`(4) Venting the incidental coal seam gas is also authorised if-- 1
(a) it is being used, or is proposed to be used, under a greenhouse 2
abatement scheme; and 3
(b) if subsection (1) were to apply, the direct or indirect benefit the 4
mining lease holder would otherwise obtain because of the use of 5
the gas under the scheme would be reduced. 6
`(5) In this section-- 7
"greenhouse abatement scheme" means-- 8
(a) the Electricity Supply Act 1995 (NSW), part 8A;727 or 9
(b) the Commonwealth's Greenhouse Gas Abatement Program; or 10
(c) another scheme about the abatement of greenhouse gases 11
prescribed under a regulation. 12
`Subdivision 2--Provisions for mining coal seam gas from coextensive 13
natural underground reservoirs 14
`318CP Application of sdiv 2 15
`This subdivision applies if a natural underground reservoir in the area of 16
a coal mining lease or an oil shale mining lease extends to-- 17
(a) the area of an adjacent coal mining lease, oil shale mining lease 18
or petroleum lease (an "adjacent lease"); or 19
(b) if a person has applied for a coal mining lease, oil shale mining 20
lease or petroleum lease that will, if granted, be an adjacent 21
lease--the area of the proposed lease. 22
`318CQ Coordination arrangement may be made about mining or 23
production from reservoir 24
`The mining lease holder and an adjacent lease holder, or proposed 25
adjacent lease holder, may make a coordination arrangement that provides 26
for the petroleum or coal seam gas that can, under this Act or the Petroleum 27
727 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), section 97K (Greenhouse gas benchmark rules).
s 960 580 s 960
Petroleum and Gas (Production and Safety) Bill 2004
and Gas (Production and Safety) Act, be mined or produced from the 1
reservoir from within the area of the mining lease and the adjacent lease, or 2
proposed adjacent lease.728 3
`318CR Restriction on coal seam gas mining from reservoir 4
`(1) The mining lease holder must not mine coal seam gas that comes, or 5
is likely to come, from the part of the reservoir that is in the area of an 6
adjacent lease unless the mining is carried out under-- 7
(a) a coordination arrangement mentioned in section 318CQ; or 8
(b) a decision of the tribunal under section 318CS. 9
`(2) However, if the adjacent lease was granted after the mining lease 10
was granted and, when the adjacent lease was granted, the mining lease 11
holder was mining coal seam gas mentioned in subsection (1), subsection 12
(1) does not apply to the mining lease holder until the later of the 13
following-- 14
(a) 6 months after granting of the adjacent lease; 15
(b) if within the 6 months the mining lease holder applies to the 16
tribunal under section 318CS--when the tribunal decides the 17
application. 18
`318CS Dispute resolution by tribunal 19
`(1) This section applies if the mining lease holder or the adjacent lease 20
holder (the "parties") have not made a coordination arrangement 21
mentioned in section 318CQ. 22
`(2) Either party may apply to the tribunal for it to decide-- 23
(a) the amount or proportion of any of the following that, when 24
mined or produced, is owned by each party-- 25
(i) coal seam gas mentioned in section 318CR(1); 26
(ii) petroleum; and 27
(b) how the parties are to bear the costs of the mining or production; 28
and 29
728 For the making of coordination arrangements, see the Petroleum and Gas
(Production and Safety) Act, chapter 2, part 8 (Petroleum activities coordination).
s 960 581 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(c) how the mining or production is to be coordinated. 1
2
Example for paragraph (c)--
3
fixing a distance from the boundary between the mining lease and the
4
adjacent lease for mining coal seam gas from the reservoir
`(3) If the adjacent lease was granted after the mining lease was granted, 5
the decision may apply from the grant of the adjacent lease. 6
`(4) In making the decision, the tribunal-- 7
(a) must attempt to optimise mining under the mining lease and 8
mining or production under the adjacent lease in a way that 9
maximises the benefit for all Queenslanders; and 10
(b) may make the decision without having regard to the issue of who 11
would, under another Act or law, have otherwise owned the 12
petroleum. 13
`(5) In considering the benefit to all Queenslanders, the tribunal must 14
have regard to the public interest. 15
`Subdivision 3--Conditions 16
`318CT Continuing requirement for coordination arrangement for 17
particular coal or oil shale mining leases 18
`(1) This section applies if-- 19
(a) a coal mining lease or an oil shale mining lease is granted over 20
land in the area of a petroleum lease and the application for the 21
mining lease was not made by or jointly with the petroleum lease 22
holder; or 23
(b) a coal mining lease holder or an oil shale mining lease holder is a 24
party to a coordination arrangement mentioned in 25
section 318DO.729 26
`(2) It is a condition of the mining lease that-- 27
(a) its holder must continue to be party to a relevant coordination 28
arrangement; and 29
729 Section 318DO (Requirement for coordination arrangement to assign or sublet
mining lease in area of petroleum lease)
s 960 582 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) authorised activities for the mining lease must not be carried out 1
if there is no relevant coordination arrangement. 2
`(3) In this section-- 3
"relevant coordination arrangement" means a coordination arrangement 4
with the relevant petroleum lease holder about-- 5
(a) coal or oil shale mining and any incidental coal seam gas mining 6
under the mining lease; and 7
(b) petroleum production under the petroleum lease. 8
`318CU Obligation to measure and record coal seam gas mined 9
`(1) It is a condition of each coal mining lease or oil shale mining lease 10
that its holder must-- 11
(a) use a meter to record the volume of coal seam gas mined, under 12
section 318CM,730 in the area of the lease; and 13
(b) comply with the provisions of the Petroleum and Gas 14
(Production and Safety) Act, chapter 8, parts 1 and 2,731 to the 15
extent the provisions are relevant to the meter and its use; and 16
(c) ensure-- 17
(i) each designated CSG product mined is measured by a 18
meter, in accordance with the relevant measurement scheme 19
under the Petroleum and Gas (Production and Safety) Act 20
for the meter; 732 and 21
(ii) the meter complies with any requirements under the 22
Petroleum and Gas (Production and Safety) Act; and 23
(iii) the measurement is made at the times and in the way 24
required under the Petroleum and Gas (Production and 25
Safety) Act; and 26
(iv) the measurement measures-- 27
730 Section 318CM (Limited entitlement to mine coal seam gas)
731 Petroleum and Gas (Production and Safety) Act, chapter 8, parts 1 (Introduction)
and 2 (Measurement schemes)
732 For what is meter, see the Petroleum and Gas (Production and Safety) Act,
section 631 (What is a "meter"). For measurement schemes, see chapter 8, part 2
(Measurement schemes) of that Act.
s 960 583 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(A) each designated CSG product separately to each other 1
type of product mentioned in the Petroleum and Gas 2
(Production and Safety) Act, section 801(2);733 and 3
(B) the percentage of methane in each designated CSG 4
product measured. 5
`(2) In this section-- 6
""meter" means a meter as defined under the Petroleum and Gas 7
(Production and Safety) Act, section 631.734 8
`318CV Obligation to lodge annual reports 9
`(1) It is a condition of each coal mining lease or oil shale mining lease 10
that its holder must, within 2 months after each of its anniversary days, 11
lodge a report that-- 12
(a) states details of each of the following for the 12 months that 13
ended on its last anniversary day-- 14
(i) the amount and location of coal seam gas mined; 15
(ii) the amount of each designated CSG product mined; 16
(iii) the percentage of methane in each designated CSG product 17
mined; 18
(iv) the amount and location of each other mineral mined; 19
(v) for each mineral mentioned in subparagraphs (i) and (ii)-- 20
(A) the amount sold; and 21
(B) the amount disposed of other than by sale; and 22
(C) each method of disposal other than sale; and 23
(D) the amount disposed of under each other method; and 24
(b) includes a plan of the mine working envelope for the mining 25
lease; and 26
(c) details the coal seam gas mined or proposed to be mined within 27
the mine working envelope; and 28
733 Petroleum and Gas (Production and Safety) Act, section 801 (Petroleum producer's
measurement obligations)
734 Petroleum and Gas (Production and Safety) Act, section 631 (What is a "meter")
s 960 584 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(d) includes other information prescribed under a regulation. 1
`(2) If the mining lease ends, its former holder must lodge a report for 2
the period from the last anniversary day for the lease to when it ended that 3
gives the information mentioned in subsection (1). 4
Maximum penalty--100 penalty units. 5
`(3) A report under this section must be lodged at-- 6
(a) the office of the department for lodging the report, as stated in a 7
gazette notice by the chief executive; or 8
(b) if no office is gazetted under paragraph (a)--the office of the 9
chief executive. 10
`(4) In this section-- 11
"anniversary day", for a mining lease, means each day that is the 12
anniversary of the day the mining lease took effect. 13
"mine working envelope", for a mining lease, means land in its area that 14
covers-- 15
(a) past mine workings; and 16
(b) current mine workings; and 17
(c) mine workings scheduled to be mined within the next 5 years. 18
`318CW Compliance with obligation to negotiate with petroleum 19
lease applicant 20
`If the obligation under the Petroleum and Gas (Production and Safety) 21
Act, section 349,735 applies to a coal mining lease holder or an oil shale 22
mining lease holder, it is a condition of the mining lease that the holder 23
must comply with the obligation. 24
`318CX Relinquishment report 25
`(1) This section applies if under a relinquishment condition, a coal 26
mining lease holder or an oil shale mining lease holder relinquishes part of 27
the area of the lease. 28
735 Petroleum and Gas (Production and Safety) Act, section 349 (Coal mining lease
holder's or oil shale mining lease holder's obligation to negotiate)
s 960 585 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`(2) The notice making the relinquishment must be accompanied by a 1
report-- 2
(a) describing-- 3
(i) the authorised activities for the mining lease carried out in 4
the part; and 5
(ii) the results of the activities; and 6
(b) giving other information prescribed under a regulation. 7
Maximum penalty--200 penalty units. 8
`(3) The mining lease holder must give a copy of the report to-- 9
(a) the relevant authority to prospect holder; and 10
(b) anyone who has a current application for a petroleum lease for 11
the part. 12
Maximum penalty--200 penalty units. 13
`318CY Surrender report 14
`If a coal mining lease holder or an oil shale mining lease holder makes a 15
surrender application mentioned in section 318EG,736 it is a condition of 16
the mining lease that the application is accompanied by a report-- 17
(a) describing-- 18
(i) the authorised activities for the lease carried out on the land 19
to which the notice relates; and 20
(ii) the results of the activities; and 21
(b) giving other information prescribed under a regulation. 22
Maximum penalty--200 penalty units. 23
`318CZ Cessation of relinquishment condition for area not 24
overlapping with authority to prospect 25
`If-- 26
(a) a coal mining lease or an oil shale mining lease contains a 27
relinquishment condition; and 28
736 Section 318EG (Power to require partial surrender application)
s 960 586 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(b) all or part of the area of the mining lease ceases to be in the area 1
of an authority to prospect (the "relevant land"); 2
the condition ceases to apply for the relevant land. 3
`Subdivision 4--Amendment of relinquishment condition by application 4
`318D Application of sdiv 4 5
`This subdivision applies if a coal mining lease or an oil shale mining 6
lease contains a relinquishment condition and all or part of the area of the 7
mining lease is in the area of an authority to prospect. 8
`318DA Conditions for applying to amend relinquishment condition 9
`(1) The mining lease holder may apply to amend the condition only if 10
the applicant has, before making the application-- 11
(a) made reasonable attempts to consult with the authority to 12
prospect holder about-- 13
(i) the proposed amendment; and 14
(ii) a proposed later development plan for the lease; and 15
(b) changed the proposed amendment and the proposed development 16
plan to give effect to any reasonable proposal by the authority 17
holder that will optimise-- 18
(i) coal or oil shale or incidental coal seam gas mining under 19
the amended mining lease; and 20
(ii) petroleum production under any future petroleum lease over 21
the land. 22
`(2) However, subsection (1)(b) applies only to the extent the proposal is 23
commercially and technically feasible for the applicant. 24
`318DB Authority to prospect holder's obligation to negotiate 25
`The authority to prospect holder must, if asked by the mining lease 26
holder, use reasonable attempts to reach an agreement with the mining 27
lease holder, about the matters mentioned in section 318DA(1)(b), that 28
s 960 587 s 960
Petroleum and Gas (Production and Safety) Bill 2004
provides the best resource use outcome without significantly affecting the 1
parties' rights or interests.737 2
`318DC Requirements for making application 3
`The application must-- 4
(a) be in the approved form; and 5
(b) be lodged at-- 6
(i) the office of the department for lodging the application, as 7
stated in a gazette notice by the chief executive; or 8
(ii) if no office is gazetted under subparagraph (i)--the office 9
stated in the approved form; or 10
(iii) otherwise--the office of the chief executive; and 11
(c) state whether or not the development plan for the mining lease 12
has been complied with; and 13
(d) if the development plan for the lease has not been complied 14
with--state details of, and the reasons for, each noncompliance; 15
and 16
(e) include a CSG statement; and 17
(f) include a proposed later development plan for the lease as 18
amended under section 318DA; and 19
(g) include a statement about each of the following-- 20
(i) the details of the consultation carried out under 21
section 318DA(1)(a); 22
(ii) the results of the consultation; 23
(iii) whether the proposed development plan includes all 24
provisions proposed by the authority to prospect holder 25
under section 318DA(1)(b); 26
(iv) if the proposed development plan does not include a 27
provision proposed by the authority holder--why it was not 28
included; 29
737 See also division 10 (Confidentiality of information).
s 960 588 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(v) the applicant's assessment of the potential for the applicant 1
and the authority holder to make a coordination 2
arrangement about-- 3
(A) coal or oil shale or incidental coal seam gas mining 4
under the amended mining lease; and 5
(B) petroleum production under any future petroleum lease 6
over the land that may be granted to the authority 7
holder; and 8
(h) be accompanied by the fee prescribed under a regulation. 9
`318DD Notice of application 10
`The applicant must immediately after making the application give the 11
authority to prospect holder a copy of the application. 12
`318DE Submissions by authority to prospect holder 13
`(1) The authority to prospect holder may lodge submissions about the 14
application at-- 15
(a) the office of the department for lodging the submissions, as 16
stated in a gazette notice by the chief executive; or 17
(b) if no office is gazetted under paragraph (a)--the office of the 18
chief executive.738 19
`(2) However, the submissions may be lodged only within 20 business 20
days after the holder is, under section 318DD, given a copy of the 21
application. 22
`(3) The submissions may include any of the following-- 23
(a) information about all or any of the following-- 24
(i) exploration carried out under the authority to prospect; 25
(ii) the results of the exploration; 26
(iii) the prospects for future petroleum production from the land; 27
(b) a proposal by the authority holder for petroleum production from 28
the land; 29
738 See also division 10 (Confidentiality of information).
s 960 589 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(c) information relevant to the CSG assessment criteria.739 1
`(4) The holder must give the applicant a copy of the submissions. 2
`(5) In deciding the application, regard must be had to the submissions. 3
`318DF Minister may require further negotiation 4
`(1) The Minister may, by written notice, require the applicant to conduct 5
negotiations with the authority to prospect holder with a view to making 6
changes of a type mentioned in section 318DA(1)(b).740 7
`(2) The applicant must use all reasonable attempts to comply with the 8
requirement. 9
`(3) If the Minister is reasonably satisfied the applicant has not complied 10
with the requirement the Minister may decide to refuse the application. 11
`318DG Deciding amendment application 12
`(1) Before deciding to grant the application, the Minister must decide 13
whether to approve the applicant's proposed later development plan for the 14
mining lease. 15
`(2) The application can not be granted unless the proposed plan has 16
been approved. 17
`(3) Division 9, subdivision 4741 applies for deciding whether to approve 18
the proposed development plan. 19
`(4) The matters that must be considered in deciding the application 20
include each of the following-- 21
(a) the CSG assessment criteria; 22
(b) whether the applicant has taken all reasonable steps to comply 23
with the relinquishment condition; 24
(c) the effect of any approval of later development plans for the 25
lease; 26
(d) any submissions under section 318DE lodged within the period 27
mentioned in section 318DE(2). 28
739 See also division 10 (Confidentiality of information).
740 Section 318DA (Conditions for applying to amend relinquishment condition)
741 Division 9, subdivision 4 (Approval of proposed later development plans)
s 960 590 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`Subdivision 5--Restriction on recommendation to amend 1
other conditions 2
`318DH Interests of relevant petroleum tenure holder to be considered 3
`A recommendation under section 294742 for the amendment of a 4
condition of a coal mining lease or an oil shale mining lease must not be 5
made unless the interests of any relevant petroleum tenure holder have been 6
considered. 7
`Subdivision 6--Renewals 8
`318DI General additional provisions for renewal application 9
`(1) This section and section 318DJ contain additional provisions for an 10
application to renew a coal mining lease or an oil shale mining lease.743 11
`(2) The application must-- 12
(a) state whether the current development plan for the lease has been 13
complied with; and 14
(b) if the development plan has not been complied with--state the 15
details of, and the reasons for, each noncompliance; and 16
(c) include a proposed later development plan for the renewed lease, 17
that complies with the later development plan requirements.744 18
`(3) The application can not be made after the lease has ended. 19
`(4) If the application is made less that 6 months before the end of the 20
term of the lease, the application must be accompanied by the late fee 21
prescribed under a regulation. 22
`318DJ Applied provisions for renewal application 23
`(1) The adopted provisions apply for any renewal application for a coal 24
mining lease or an oil shale mining lease-- 25
742 Section 294 (Variation of conditions of mining lease)
743 See also section 286 (Renewal of mining lease).
744 See section 318ED (Later development plan requirements).
s 960 591 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) as if the mining lease holder had lodged a proposed later 1
development plan; and 2
(b) as if a reference in the adopted provisions-- 3
(i) to the application were a reference to the renewal 4
application; and 5
(ii) to a mining lease were a reference to a renewed mining 6
lease; and 7
(iii) to a proposed development plan were a reference to a 8
proposed later development plan; and 9
(c) with other necessary changes. 10
`(2) In this section-- 11
"adopted provisions" means-- 12
(a) sections 318DZ and 318E; and
745
13
(b) division 9, subdivision 4;746 and 14
(c) if all or part of the area of the mining lease is in the area of an 15
authority to prospect and the applicant does not hold the 16
authority to prospect--division 2, subdivisions 2 and 4;747 and 17
(d) if all or part of the area of the mining lease is in the area of an 18
authority to prospect and the applicant holds the authority to 19
prospect--division 3;748 and 20
(e) if all or part of the land in the area of the mining lease is in the 21
area of a petroleum lease and the mining lease holder is not a 22
holder of the petroleum lease--division 5.749 23
745 Sections 318DZ (Ministerial approval of proposed plan) and 318E (Amendment of
proposed plan before approval)
746 Division 9, subdivision 4 (Approval of proposed later development plans)
747 Division 2 (Obtaining coal mining lease or oil shale mining lease over land in area
of authority to prospect (other than by or jointly with, or with the consent of,
authority to prospect holder)), subdivisions 2 (Provisions for making coal mining
lease or oil shale mining lease application) and 4 (Obligations of applicant and
authority to prospect holder)
748 Division 3 (Obtaining coal mining lease or oil shale mining lease over land in area
of authority to prospect (by or jointly with, or with the consent of, authority to
prospect holder))
749 Division 5 (Obtaining coal mining lease or oil shale mining lease over land in area
of petroleum lease (other than by or jointly with petroleum lease holder))
s 960 592 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318DK Mining lease taken to have development plan until renewal 1
application decided 2
`(1) This section applies until the happening of the following event if an 3
application to renew a coal mining lease or an oil shale mining lease is 4
made and the application complies with this division-- 5
(a) if it is decided to renew the lease--the lease holder is given 6
notice of the renewal; 7
(b) if it is decided not renew the lease--the decision not to renew 8
takes effect.750 9
`(2) Despite the ending of the plan period for the current development 10
plan for the lease-- 11
(a) the mining lease is taken to have a development plan; and 12
(b) the holder may carry out any authorised activity for the lease. 13
`Subdivision 7--Consolidations 14
`318DL Restriction on consolidation applications 15
`A coal mining lease holder or an oil shale mining lease holder can not 16
apply to consolidate the lease with another type of mining lease. 17
`318DM Additional requirements for making consolidation 18
application 19
`(1) This section applies if an application under section 299751 is made to 20
consolidate coal mining leases or oil shale mining leases. 21
`(2) The application must-- 22
(a) include a proposed development plan for the consolidated mining 23
lease; and 24
(b) be accompanied by the fee prescribed under a regulation. 25
750 For when the decision takes effect, see section 318EH (Steps after, and taking effect,
of decision), as applied under section 318DJ (Applied provisions for renewal
application).
751 Section 299 (Consolidation of mining leases)
s 960 593 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`(3) The proposed plan must comply with the later development plan 1
requirements.752 2
`318DN Deciding whether to approve proposed development plan 3
`Sections 318EF to 318EH753 apply to a proposed development plan 4
included in an application under section 299754-- 5
(a) as if the proposed plan were a proposed later development plan 6
lodged under section 318EB;755 and 7
(b) as if a reference in the sections to the approval of a proposed later 8
development plan were a reference to the proposed development 9
plan for the consolidated lease; and 10
(c) with other necessary changes. 11
`Subdivision 8--Restriction on assignment or subletting 12
`318DO Requirement for coordination arrangement to assign or sublet 13
mining lease in area of petroleum lease 14
`(1) This section applies if land in the area of a coal mining lease or an 15
oil shale mining lease is also in the area of a petroleum lease. 16
`(2) The mining registrar must not, under section 300,756 approve an 17
assignment or sublease of the mining lease unless the proposed assignee or 18
sublessee and the petroleum lease holder are parties to a coordination 19
arrangement757 about-- 20
752 See division 9, subdivision 2 (Requirements for proposed initial development plans)
753 Sections 318EF (Criteria for deciding whether to approve proposed plan), 318EG
(Power to require partial surrender application) and 318EH (Steps after, and taking
effect of, decision)
754 Section 299 (Consolidation of mining leases)
755 Section 318EB (Obligation to lodge proposed later development plan)
756 Section 300 (Assignment, mortgage or sublease of mining lease)
757 See the Petroleum and Gas (Production and Safety) Act, chapter 2, part 8 (Petroleum
activities coordination).
s 960 594 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) coal or oil shale mining and any incidental coal seam gas under 1
the mining lease; and 2
(b) petroleum production under the petroleum lease. 3
`Division 9--Development plans for coal mining leases and oil shale 4
mining leases 5
`Subdivision 1--General provisions about development plans 6
`318DP Function and purpose 7
`(1) The development plan for a coal mining lease or an oil shale mining 8
lease, or a proposed coal mining lease or an oil shale mining lease, 9
(the "relevant lease") gives detailed information about the nature and 10
extent of activities to be carried out under the lease. 11
`(2) The development plan may-- 12
(a) also relate to another coal mining lease or oil shale mining lease 13
or proposed coal mining lease or oil shale mining lease if the 14
other lease or proposed lease relates to the relevant lease; and 15
(b) provide that when the plan is approved it will replace any 16
development plan for the other lease. 17
`(3) The purposes of giving the information is to-- 18
(a) allow resource management decisions to be made; and 19
(b) ensure appropriate development of minerals that, under 20
section 234,758 are specified in the lease. 21
`318DQ Requirement to have development plan 22
`It is a condition of each coal mining lease or oil shale mining lease that 23
its holder must ensure there is a development plan for the lease. 24
25
Note--
26
The only `development plan' for a coal mining lease or oil shale mining lease is its
27
current initial or later development plan, as approved under this division: See the
758 Section 234 (Governor in Council may grant mining lease)
s 960 595 s 960
Petroleum and Gas (Production and Safety) Bill 2004
1
definition of that term in the dictionary. For the requirement to lodge a proposed later
2
development plan and its approval, see subdivision 4.759
`318DR Obligation to comply with development plan 3
`It is a condition of each coal mining lease or oil shale mining lease that 4
its holder must comply with the development plan for the lease.760 5
`Subdivision 2--Requirements for proposed initial development plans 6
`318DS Operation of sdiv 2 7
`This subdivision provides for requirements (the "initial development 8
plan requirements") for a proposed initial development plan for a 9
proposed coal mining lease or oil shale mining lease.761 10
`318DT General requirements 11
`(1) The proposed plan must provide for each of the following-- 12
(a) an overview of the activities proposed to be carried out under the 13
proposed mining lease during all of its proposed term; 14
(b) for each year of the plan period-- 15
(i) the nature and extent of activities proposed to be carried out 16
under the proposed mining lease during the year; and 17
(ii) where the activities are proposed to be carried out; 18
(c) for each mineral the applicant proposes to mine under the 19
proposed mining lease, each of the following-- 20
(i) the location and an estimate of the resources of the mineral 21
in all of the area, or proposed area, of the proposed mining 22
lease; 23
(ii) the standards and procedures used to make the estimate; 24
759 Subdivision 4 (Approval of proposed later development plans)
760 See however part 19, division 6 (Transitional provisions for Petroleum and Gas
(Production and Safety) Act 2004).
761 For additional requirements for proposed later development plans, see
section 318ED (Later development plan requirements).
s 960 596 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(iii) the rate and amount of the proposed mining; 1
(iv) approximately when the proposed mining is to start; 2
(v) a schedule for the proposed mining during the plan period; 3
(d) maps that show the matters mentioned in paragraphs (b) 4
and (c)(i), (iii) and (iv); 5
(e) any other information relevant to the criteria mentioned in 6
section 318EF;762 7
(f) reasons why the plan is considered appropriate; 8
(g) another matter prescribed under a regulation. 9
`(2) A regulation may impose requirements about the form of the 10
development plan. 11
`(3) In this section-- 12
"year", of the plan period, means-- 13
(a) the period starting on the day the plan period starts and ending on 14
the first anniversary of that day; and 15
(b) each subsequent period of 12 months or less during the plan 16
period, starting on each anniversary of that day and ending on-- 17
(i) the next anniversary of that day; or 18
(ii) if the plan period ends before the next anniversary--the day 19
the plan period ends. 20
`318DU Plan period 21
`(1) The proposed plan must state its period. 22
`(2) The period must not be longer than-- 23
(a) if the term sought for the mining lease is less than 5 years from 24
the granting of the mining lease--the term of the mining lease; or 25
(b) if the term sought for the mining lease is 5 years or 26
more--5 years from the start of the term. 27
762 Section 318EF (Criteria for deciding whether to approve proposed plan)
s 960 597 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`318DV Statement about interests of relevant petroleum tenure holder 1
`The proposed plan must include a statement of how the effects on, and 2
the interests of, any relevant overlapping or adjacent petroleum tenure 3
holder have, or have not, been considered, having regard to-- 4
(a) the main purposes of this part;763 and 5
(b) the CSG assessment criteria, other than the initial development 6
plan requirements. 7
`318DW Requirement to optimise use of incidental coal seam gas 8
`The activities provided for under the proposed plan must seek to 9
optimise the use of incidental coal seam gas in a safe and efficient way if it 10
is commercially and technically feasible to do so. 11
`318DX Consistency with petroleum lease development plan and 12
relevant coordination arrangement 13
`If all or part of the land in the area of the proposed mining lease is in the 14
area of a petroleum lease (the "relevant land"), the proposed plan must, to 15
the extent it applies to the relevant land, be consistent with-- 16
(a) the development plan for the petroleum lease; and 17
(b) any coordination arrangement relating to the relevant land. 18
`Subdivision 3--Approval of proposed initial development plans 19
`318DY Application of sdiv 3 20
`This subdivision applies to all coal mining lease and oil shale mining 21
lease applications. 22
`318DZ Ministerial approval of proposed plan 23
`(1) The Minister must decide whether to approve the applicant's 24
proposed development plan for the proposed mining lease. 25
763 See section 318A (Main purposes of pt 7AA).
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Petroleum and Gas (Production and Safety) Bill 2004
`(2) If the proposed plan is not approved the application must be 1
rejected. 2
`318E Amendment of proposed plan before approval 3
`(1) The applicant may, by written notice lodged at the following office, 4
amend the proposed development plan at any time before the Minister 5
decides whether to approve the applicant's proposed development plan-- 6
(a) the office of the department for lodging the notice, as stated in a 7
gazette notice by the chief executive; 8
(b) if no office is gazetted under paragraph (a)--the office of the 9
chief executive. 10
`(2) The notice must be accompanied by the amended proposed plan. 11
`318EA Deciding whether to approve proposed plan 12
`(1) The Minister may approve or refuse to approve the proposed 13
proposed development plan. 14
`(2) The matters that must be considered in deciding whether to approve 15
the proposed plan include each of the following-- 16
(a) the potential of the area of the proposed mining lease for each of 17
the following (the "activities")-- 18
(i) mining; 19
(ii) each other purpose for which the lease is sought; 20
(b) the nature and extent of the activities; 21
(c) when and where the activities are proposed to be carried out; 22
(d) whether the mining of minerals that, under section 234, are 764
23
sought to be specified in the lease will be optimised in the best 24
interests of the State, having regard to the public interest; 25
(e) the CSG assessment criteria.765 26
764 Section 234 (Governor in Council may grant mining lease)
765 See also section 318DZ (Ministerial approval of proposed plan).
s 960 599 s 960
Petroleum and Gas (Production and Safety) Bill 2004
`Subdivision 4--Approval of proposed later development plans 1
`318EB Obligation to lodge proposed later development plan 2
`(1) It is a condition of each coal mining lease or oil shale mining lease 3
that its holder must lodge a proposed later development plan for the mining 4
lease as provided for under this section. 5
6
Note--
7
If the holder wishes to renew the lease, a proposed later development plan must be
8
included in the renewal application. See section 318DI(2)(c).766
`(2) The condition is complied with only if the proposed later 9
development plan-- 10
(a) is lodged at-- 11
(i) the office of the department for lodging proposed later 12
development plans, as stated in a gazette notice by the chief 13
executive; 14
(ii) if no office is gazetted under subparagraph (i)--the office of 15
the chief executive; and 16
(b) complies with the requirements under section 318ED (the "later 17
development plan requirements"); and 18
(c) is accompanied by the relevant fee. 19
`(3) A proposed later development plan must be lodged-- 20
(a) at least 40, but no more than 80, business days before the end of 21
the plan period for its current development plan (the "current 22
plan period"); or 23
(b) as soon as reasonably practicable after the holder becomes aware 24
of the need to change an authorised activity for the lease that will 25
significantly change the type or extent of an activity provided for 26
under the development plan; or 27
(c) within 20 business days after a coordination arrangement relating 28
to the lease ends. 29
`(4) However, if before the end of the current plan period, a decision is 30
made not to approve a proposed later development plan lodged under 31
766 Section 318DI (General additional provisions for renewal application)
s 960 600 s 960
Petroleum and Gas (Production and Safety) Bill 2004
subsection (3), the holder may, within the period, lodge another proposed 1
later development plan. 2
`(5) If the holder does not lodge any proposed later development plan 3
before the end of the current plan period-- 4
(a) the holder must be given a notice requiring the holder to lodge a 5
proposed later development plan for the lease within 20 business 6
days after the giving of the notice; and 7
(b) the holder must comply with the requirement. 8
`(6) In this section-- 9
"relevant fee", for the lodgment of the proposed plan, means-- 10
(a) if the proposed plan is lodged within the time required under 11
subsection (3)--the fee prescribed under a regulation; or 12
(b) if the proposed plan is lodged after the time required under 13
subsection (3)-- 14
(i) if it is lodged under subsection (4)--nil; or 15
(ii) if it is not lodged under subsection (4) and it is lodged 16
before the end of the current plan period--an amount that is 17
10 times the prescribed fee; or 18
(iii) it in not lodged under subsection (4) and it is lodged after 19
the end of the current plan period--an amount that is 20
20 times the prescribed fee. 21
`318EC Consequence of failure to comply with notice to lodge 22
proposed later development plan 23
`(1) If a coal mining lease holder or oil shale mining lease holder does 24
not comply with a requirement under section 318EB(5)(a), the lease is 25
cancelled. 26
`(2) However, the cancellation does not take effect until the holder is 27
given a notice stating that the lease has been cancelled because of the 28
operation of subsection (1). 29
`318ED Later development plan requirements 30
`(1) A proposed later development plan must-- 31
s 960 601 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) comply with the initial development plan requirements, as if the 1
reference in section 318DU(2)767 to the term sought for the 2
mining lease were a reference to the remaining term, or the 3
renewed term, of the lease;768 and 4
(b) highlight any significant changes from the current development 5
plan for the mining lease; and 6
(c) state whether the current development plan has been complied 7
with; and 8
(d) if the current development plan has not been complied 9
with--state the details of, and the reasons for, each 10
noncompliance. 11
`(2) For subsection (1), section 318DU769 applies as if a reference to the 12
term sought for the mining lease is a reference to the term of the mining 13
lease. 14
`(3) If the effect of the proposed plan is to significantly change an 15
activity provided for under the current development plan, the proposed plan 16
must also state reasons for the change. 17
`318EE Mining lease taken to have development plan until decision on 18
whether to approve proposed later development plan 19
`(1) This section applies until the happening of the following event if, 20
under section 318EB, the holder lodges a proposed later development plan 21
before the end of the plan period for the current development plan for the 22
mining lease-- 23
(a) if the proposed plan is approved--the holder is given notice of 24
the approval; 25
(b) if approval of the proposed program is refused--when the refusal 26
takes effect.770 27
`(2) Despite the ending of the plan period for the current development 28
plan-- 29
767 Section 318DU (Plan period)
768 See subdivision 2 (Requirements for proposed initial development plans).
769 Section 318DU (Plan period)
770 For when the decision takes effect, see section 318EH (Steps after, and taking effect,
of decision).
s 960 602 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) the mining lease is taken to have a development plan; and 1
(b) the holder may carry out any authorised activity for the lease. 2
`318EF Criteria for deciding whether to approve proposed plan 3
`The matters that must be considered in deciding whether to approve the 4
proposed later development plan include each of the following-- 5
(a) the criteria under section 318EA771 for deciding whether to 6
approve a proposed initial development plan; 7
(b) the extent to which the current development plan for the mining 8
lease has been complied with; 9
(c) the CSG assessment criteria;772 10
(d) the effect of any approval of the proposed plan on any 11
relinquishment condition for the mining lease; 12
(e) if the proposed plan provides for a significant change that is a 13
cessation or reduction of mining or other purposes for which the 14
mining lease is granted-- 15
(i) whether the cessation or reduction is reasonable; and 16
(ii) whether the mining lease holder has taken all reasonable 17
steps to prevent the cessation or reduction. 18
`318EG Power to require partial surrender application 19
`(1) This section applies if the proposed plan provides for a significant 20
change that is a cessation or reduction of mining or other purposes for 21
which the mining lease is granted. 22
`(2) The Minister may approve the proposed plan, but-- 23
(a) decide (a "deferral decision")-- 24
(i) to defer the taking of effect of the approval until the mining 25
lease holder applies under section 309773 to surrender a 26
stated part or percentage of the area of the lease on or before 27
a stated day; and 28
771 Section 318EA (Criteria for deciding whether to approve proposed plan)
772 See also section 318DZ (Ministerial approval of proposed plan).
773 Section 309 (Surrender of mining lease)
s 960 603 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(ii) that the decision to approve the proposed plan is replaced by 1
a decision not to approve it if the surrender application is 2
not made is not made on or before the stated day; or 3
(b) impose a condition on the petroleum lease requiring its holder to 4
apply under section 309 to surrender a stated part or percentage 5
of the area of the lease at stated times or intervals. 6
`(3) The public interest must be considered before making a deferral 7
decision or imposing the condition. 8
`318EH Steps after, and taking effect, of decision 9
`(1) On approval of the proposed later development plan, the chief 10
executive must give the holder notice of the approval. 11
`(2) For the following, the notice must be an information notice-- 12
(a) a decision to refuse to approve the proposed plan; 13
(b) an approval of the proposed plan that, under section 318EG, is 14
deferred; 15
(c) a decision under section 318EG(2)(b). 16
`(3) An approval without any deferral under section 318EG(2)(a) takes 17
effect when the holder is given the notice or, if the notice states a later day 18
of effect, on that later day. 19
`(4) A refusal does not takes effect until the end the appeal period under 20
section 318EI. 21
`(5) In this section-- 22
"information notice" means a notice stating-- 23
(a) the reasons for the decision; and 24
(b) that the holder may appeal against the decision; and 25
(c) how to appeal. 26
`Subdivision 5--Appeals 27
`318EI Right of appeal against cancellation, deferral or refusal 28
`(1) This section applies if-- 29
s 960 604 s 960
Petroleum and Gas (Production and Safety) Bill 2004
(a) under section 318DZ,774 it is decided not to approve a proposed 1
development plan; or 2
(b) under section 318EC,775 it is decided to cancel the petroleum 3
lease; or 4
(c) it is decided not to approve the proposed later development plan; 5
or 6
(d) under section 318EG, it is decided to defer an approval of the 7
later development plan. 8
`(2) The Petroleum and Gas (Production and Safety) Act, chapter 12, 9
part 2, applies, with necessary changes, as if-- 10
(a) the decision were mentioned in schedule 2, table 2 of that Act; 11
and 12
(b) the schedule stated the tribunal as the appeal body for the 13
decision; and 14
(c) a reference in that part to an information notice were a reference 15
to a notice under section 318EH.776 16
`Division 10--Confidentiality of information 17
`318EJ Application of div 10 18
`(1) This division applies if a tenure holder or a person who has applied 19
for a tenure (the "information-giver") gives another tenure holder or a 20
person who has applied for a tenure (the "recipient") information-- 21
(a) that this part requires the information-giver to give the recipient, 22
including, for example, information given to comply with 23
section 318AW(a);777 or 24
(b) for the purposes of this part. 25
774 Section 318DZ (Ministerial approval of proposed plan)
775 Section 318EC (Consequence of failure to comply with notice to lodge proposed
later development plan)
776 Petroleum and Gas (Production and Safety) Act, chapter 12, part 2 (Appeals),
schedule 1 (Reviews and appeals) and section 824 (Period to appeal)
777 Section 318AW (Authority to prospect holder's obligations)
s 961 605 s 961
Petroleum and Gas (Production and Safety) Bill 2004
`(2) However, this division applies subject to any agreement between the 1
information-giver and the recipient about the information or its use. 2
`(3) In this section-- 3
"information" means information given verbally or in writing. 4
"tenure" means a coal or oil shale mining tenement or a petroleum tenure. 5
`318EK Confidentiality obligations 6
`(1) The recipient must not disclose the information to anyone else, 7
unless-- 8
(a) the information is publicly available; or 9
(b) the disclosure is-- 10
(i) made with the information-giver's consent; or 11
(ii) expressly permitted or required under this or another Act; or 12
(iii) to the Minister. 13
`(2) The recipient may use the information only for the purpose for 14
which it is given. 15
`318EL Civil remedies 16
`If the recipient does comply with section 318EL, a court of competent 17
jurisdiction may order the recipient to pay the information-giver all or any 18
of the following-- 19
(a) compensation for any loss the information-giver incurred 20
because of the failure to comply with the section; 21
(b) the amount of any commercial gain the recipient made because 22
of the failure to comply with the section.'. 23
961 Renumbering of pt 7A, ss 318A-318M 24
Part 7A, sections 318A to 318M-- 25
renumber as part 7A, sections 318EM to 318EY. 26
s 962 606 s 964
Petroleum and Gas (Production and Safety) Bill 2004
962 Amendment of s 318EO, as renumbered under this Act (What is a 1
"notifiable road use") 2
(1) Section 318EO(1), as renumbered under this Act, `minerals produced 3
on or from land subject to the tenement'-- 4
omit, insert-- 5
`minerals mined in the area of the mining tenement'. 6
(2) Section 318EO(2)(a), as renumbered under this Act, example-- 7
omit. 8
(3) Section 318EO(3), as renumbered under this Act, `on land subject to 9
the mining tenement'-- 10
omit, insert-- 11
`in the area of the mining tenement'. 12
963 Amendment of s 318ES, as renumbered under this Act (Liability 13
to compensate road authority) 14
(1) Section 318ES(3)(a), as renumbered under this Act, 15
`section 318D'-- 16
omit, insert-- 17
`section 318EP'. 18
(2) Section 318ES(3)(b), as renumbered under this Act, 19
`section 318M'-- 20
omit, insert-- 21
`section 318EY'. 22
964 Amendment of s 318EW, as renumbered under this Act (Tribunal 23
review of compensation) 24
(1) Section 318EW(3), as renumbered under this Act, `Sections 318I 25
and 318J'-- 26
omit, insert-- 27
`Sections 318EU and 318EV'. 28
(2) Section 318EW(5)(c), as renumbered under this Act, 29
`section 318J(1)'-- 30
s 965 607 s 968
Petroleum and Gas (Production and Safety) Bill 2004
omit, insert-- 1
`section 318EV(1)'. 2
965 Amendment of s 318EY, as renumbered under this Act 3
(Compensation not affected by change in administration or 4
holder) 5
Section 318EY(2), as renumbered under this Act, `section 318K'-- 6
omit, insert-- 7
`section 318EW'. 8
966 Amendment of s 736 (Exclusion of pt 7A for continuance of 9
existing notifiable road uses) 10
Section 736(1)(a), `section 318D'-- 11
omit, insert-- 12
`section 318EP'. 13
967 Amendment of s 417 (Regulation-making power) 14
(1) Section 417(2)-- 15
insert-- 16
`(ga)the disposal of coal seam gas;'. 17
(2) Section 417(2)(ga) to (o)-- 18
renumber as section 417(2)(h) to (p). 19
968 Insertion of new pt 19, div 6 20
Part 19-- 21
insert-- 22
s 968 608 s 968
Petroleum and Gas (Production and Safety) Bill 2004
`Division 6--Transitional provisions for Petroleum and Gas (Production 1
and Safety) Act 2004 2
`Subdivision 1--Preliminary 3
`739 Definitions for div 6 4
`In this division-- 5
"commencement", other than for subdivision 2, means the day 6
section 318CM commences. 7
"MDL" means mineral development licence. 8
"MDL applicant" see section 754(2)(c). 9
"MDL application" see section 754(1)(b). 10
"mineral hydrocarbon mining lease" means any of the following mining 11
leases-- 12
Mining lease number Mining lease name
ML 1759 Blackwater Mine
ML 1760 Blackwater
ML 1761 Mackenzie River
ML 1762 South Blackwater
ML 1763 Goonyella Coal Mine
ML 1764 Riverside
ML 1771 Sirius Creek
ML 1773 Laleham
ML 1775 --
ML 1781 Daunia
ML 1782 Norwich Park
ML 1789 Gregory
s 968 609 s 968
Petroleum and Gas (Production and Safety) Bill 2004
Mining lease number Mining lease name
ML 1790 --
ML 1791 Winchester
ML 1792 Terang
ML 1800 Wilpeena Mining Lease
ML 1802 Riverside Extended
ML 1831 German Creek
ML 1860 Togara No. 2
ML 1885 Harrow Creek Extended
ML 1907 Marshmead
ML 1923 Gregory Extension
ML 4749 Poitrel
ML 4750 Kemmis-walker
ML 4751 Bee Creek
ML 4752 Lancewood
ML 5591 Moura
ML 5592 Moura
ML 5593 Moura
ML 5596 Moura
ML 5597 Moura
ML 5598 Moura
ML 5599 Moura No. 3
ML 5600 Moura
ML 5601 Moura
s 968 610 s 968
Petroleum and Gas (Production and Safety) Bill 2004
Mining lease number Mining lease name
ML 5603 Moura
ML 5604 Moura
ML 5606 Moura
ML 5607 Moura
ML 5611 Moura
ML 5630 Moura
ML 5643 Moura
ML 5644 Moura
ML 5646 Moura
ML 5650 Moura
ML 5656 Moura
ML 5657 Theodore
ML 70108 Moranbah North
"mining", a substance, includes-- 1
(a) extracting producing, releasing or disposing of the substance; 2
and 3
(b) transporting the substance within the boundaries of the area of 4
the mining lease under which it was mined. 5
"overlapping land" see section 754(1). 6
"special agreement Act" means any of the following-- 7
(a) the Central Queensland Coal Associates Agreement Act 1968; or 8
(b) the Thiess Peabody Mitsui Coal Pty. Ltd. Agreements Acts 1962 9
to 1965; 10
(c) an agreement, or amendment of an agreement, provided for 11
under any an Act mentioned in paragraph (a) or (b). 12
s 968 611 s 968
Petroleum and Gas (Production and Safety) Bill 2004
`Subdivision 2--Provisions for special agreement Acts 1
`740 Application of div 6 to special coal mining lease under special 2
agreement Act 3
`This division applies to a special coal mining lease granted under a 4
special agreement Act as if the lease were a mineral hydrocarbon mining 5
lease. 6
`741 Unfinished special coal mining lease applications 7
`(1) A special coal mining lease must not be granted under a special 8
agreement Act if the lease was applied for or requested, but not granted, 9
before the commencement of this section. 10
`(2) An addition to the area of an existing special coal mining lease must 11
not be made under a special agreement Act if the addition was applied for 12
or requested, but not made, before the commencement. 13
`(3) This section applies despite any provision of the Special agreement 14
Act. 15
`(4) In this section-- 16
"applied for" includes specified under clause 18778 of the agreement under 17
the Thiess Peabody Coal Pty. Ltd. Agreement Act 1962. 18
"existing special coal mining lease" means a special coal mining lease 19
that, immediately before the commencement, was in force under a 20
special agreement Act. 21
`742 Division 6 prevails over special agreement Acts 22
`If a provision of this part conflicts with a provision of a special 23
agreement Act, the provision of this division prevails to the extent of the 24
inconsistency. 25
778 Agreement, clause 18 (Grant of special coal mining leases)
s 968 612 s 968
Petroleum and Gas (Production and Safety) Bill 2004
`743 No compensation 1
`(1) No amount, whether by way of compensation, reimbursement or 2
otherwise is payable by the State to any person for or in connection with 3
the enactment or operation of this subdivision. 4
`(2) Subsection (1) applies despite any provision of a special agreement 5
Act and despite any other Act or law. 6
`Subdivision 3--Provision for section 3A 7
`744 Application of s 3A to existing mining tenements 8
`(1) Section 3A779 applies for an existing mining tenement. 9
`(2) However, section 3A(3) and (7) do not apply for an authorised 10
activity for an existing mining tenement until 3 months after the 11
commencement. 12
`(3) In this section-- 13
"commencement" means the day section 3A commences. 14
"existing mining tenement" means a mining tenement (other than a coal 15
or oil shale mining tenement) in force immediately before the 16
commencement. 17
`Subdivision 4--Unfinished coal or oil shale mining lease applications 18
for land in area of petroleum tenure 19
`745 Application of pt 7AA 20
`(1) This section applies if, immediately before the commencement-- 21
(a) a coal or oil shale mining lease application had not been decided; 22
and 23
(b) the land the subject of the application is in the area of a 24
petroleum tenure. 25
`(2) Part 7AA780 applies to the application. 26
779 Section 3A (Relationship with petroleum legislation)
780 Part 7AA (Provisions for coal seam gas)
s 968 613 s 968
Petroleum and Gas (Production and Safety) Bill 2004
`(3) The application may be decided only if the provisions of part 7AA, 1
to the extent they are relevant, have been complied with. 2
`(4) However, subsections (2) and (3) are subject to sections 307 3
and 392.781 4
`(5) In this section-- 5
"decided" means the making of a recommendation to the Governor in 6
Council under section 271(1)(a) that a mining lease be granted. 7
`Subdivision 5--Provisions for existing coal mining leases 8
`746 Clarification provision for coal seam gas 9
`(1) This section applies to a coal mining lease, other than a mineral 10
hydrocarbon mining lease, that was in force during the period in which the 11
Petroleum Act 1923, former section 150(4),782 was in force. 12
`(2) To remove any doubt, it is declared that despite the provisions of the 13
Petroleum Act 1923, section 150(4), the entitlement under section 235 (as it 14
was in force during that period)783 of the lease holder is taken, during the 15
period, to have included the right to extract and produce, or mine, coal 16
seam gas. 17
`(3) To remove any doubt, it is declared that subsection (2) does not 18
affect the application of part 7AA, division 8, subdivision 1784 in relation to 19
the lease. 20
`(4) The right under subsection (2) is subject to section 748. 21
`747 Continuation of particular rights relating to coal seam gas under 22
mineral hydrocarbon mining leases 23
`(1) From the commencement, a mineral hydrocarbon mining lease 24
holder may-- 25
781 Sections 307 (Abandonment of application for the grant of a mining lease) and 392
(Substantial compliance with Act may be accepted as compliance)
782 Petroleum Act 1923, section 150 (Declaration about certain permits, leases and
licences)
783 Section 235, as it was in force during that period, (Entitlements of holder of mining
lease)
784 Part 7AA, division 8, subdivision 1 (Entitlement to coal seam gas)
s 968 614 s 968
Petroleum and Gas (Production and Safety) Bill 2004
(a) mine for coal seam gas in the area of the mining lease; and 1
(b) use the coal seam gas mined for any purpose allowed under the 2
lease, including, for example, any of the following uses allowed 3
under the lease-- 4
(i) a use that, under section 318CN,785 may be made of 5
incidental coal seam gas by a coal or oil shale mining lease 6
holder; 7
(ii) a commercial use that may be made of coal seam gas by a 8
petroleum lease holder. 9
`(2) However, the mining and the carrying out of a use mentioned in 10
subsection (1)(b) is subject to-- 11
(a) section 318CO, as deferred under section 749;786 and 12
(b) the Petroleum and Gas (Production and Safety) Act, chapter 9.787 13
`(3) To remove any doubt, it is declared that-- 14
(a) subsection (1) applies despite-- 15
(i) section 318CN(1), (2) and (3); or 16
(ii) the Petroleum Act 1923, section 150; or 17
(iii) the Petroleum and Gas (Production and Safety) Act, 18
sections 576 and 577;788 and 19
(b) the rights under subsection (1) may be exercised-- 20
(i) even though the holder does not hold a petroleum tenure 21
that allows the rights to be exercised; and 22
785 Section 318CN (Use that may be made under mining lease of incidental coal seam
gas)
786 Section 318CO (Restriction on flaring or venting of incidental coal seam gas)
Section 749 (Deferral of ss 318CN(2) and 318CO for particular existing coal mining
lease holders)
787 Petroleum and Gas (Production and Safety) Act 2004, chapter 9 (Safety)
788 Petroleum Act 1923, section 150 (Declaration about certain permits, leases and
licences)
Petroleum and Gas (Production and Safety) Act 2004, sections 800 (Restriction on
petroleum tenure activities) and 802 (Restriction on pipeline construction or
operation)
s 968 615 s 968
Petroleum and Gas (Production and Safety) Bill 2004
(ii) independently of any right the holder has under the lease to 1
mine coal. 2
`748 Restriction on flaring or venting coal seam gas 3
`Section 318CO applies for a coal mining lease in force immediately
789
4
before the commencement as if a reference in section 318CO to incidental 5
coal seam gas were a reference to coal seam gas generally. 6
`749 Deferral of ss 318CN(2) and 318CO for particular existing coal 7
mining lease holders 8
`If, immediately before the commencement, the holder of a coal mining 9
lease was commercially using incidental coal seam gas mined under the 10
lease, sections 318CN(2) and 318CO790 do not apply to the holder until 11
12 months after the commencement.791 12
`750 Deferral of s 318CR(1) for existing coal mining lease holders 13
`Section 318CR(1) does not apply to the holder of a coal mining lease
792
14
in force at the commencement until 6 months after the commencement. 15
`Subdivision 6--Modified application of section 318CI for particular 16
existing exploration tenements overlapping with petroleum lease 17
`751 Application of sdiv 6 18
`(1) This subdivision applies if-- 19
(a) land is in the area of-- 20
(i) a coal or oil shale exploration tenement; and 21
(ii) a petroleum lease; and 22
789 Section 318CO (Restriction on flaring or venting of incidental coal seam gas)
790 Sections 318CN (Use that may be made under mining lease of incidental coal seam
gas) and 318CO (Restriction on flaring or venting or incidental coal seam gas)
791 See also section 747 (Continuation of particular rights relating to coal seam gas
under mineral hydrocarbon mining leases).
792 Section 318CR (Restriction on coal seam gas mining from reservoir)
s 968 616 s 968
Petroleum and Gas (Production and Safety) Bill 2004
(b) the exploration tenement and the lease are in force immediately 1
before the commencement. 2
`(2) However-- 3
(a) this subdivision does not apply to an MDL granted before the 4
petroleum lease;793 and 5
(b) this subdivision does not apply, or ceases to apply, if the same 6
person holds the exploration tenement and the lease. 7
`752 Modified application of s 318CI until 3 months after 8
commencement 9
`(1) If, immediately before the commencement, an authorised activity 10
for the exploration tenement was being carried out on the land, 11
section 318CI794 does not apply for the carrying out of the activity on the 12
land during the period that-- 13
(a) starts on the commencement; and 14
(b) ends 3 months after the commencement. 15
`(2) However, if the carrying out of the activity during the period 16
adversely affects the carrying out of an authorised activity for the lease, the 17
activity may be carried out during the period only if section 318CI is 18
complied with. 19
`(3) Subsection (2) applies whether or not the authorised activity for the 20
lease has already started. 21
`753 Power to relinquish if activity restricted 22
`(1) If, because of the restriction under section 752(2), the activity can 23
not be carried out, the exploration tenement holder may with the Minister's 24
approval lodge a written notice-- 25
(a) relinquishing the part of the area of the exploration tenement to 26
which the restriction applies; and 27
793 For mineral development licences granted before the petroleum lease, see
subdivision 7 (Particular provision for existing or proposed mineral development
licences that overlap with a Petroleum Act lease).
794 Section 318CI (Restriction)
s 968 617 s 968
Petroleum and Gas (Production and Safety) Bill 2004
(b) amending the statement for the exploration tenement accepted by 1
the Minister under section 133(1)(g)(i) or 183(1)(m)(i)(B) to 2
reflect the restriction.795 3
`(2) The notice must be lodged at-- 4
(a) the office of the department for lodging the notice, as stated in a 5
gazette notice by the chief executive; or 6
(b) if no office is gazetted under paragraph (a)--the office of the 7
chief executive. 8
`(3) Subsection (1) does not limit section 141C.796 9
`Subdivision 7--Particular provision for existing mineral development 10
licences that overlap with a Petroleum Act lease 11
`754 Application of sdiv 7 12
`(1) This subdivision applies if, before the commencement, a petroleum 13
lease under the Petroleum Act 1923 was granted and when it was granted 14
the area of the lease included any of the following land (overlapping 15
land")-- 16
(a) land in the area of an MDL that is a coal or oil shale exploration 17
tenement; 18
(b) land the subject of an application (the "MDL application") for 19
an MDL made but not decided before the commencement if the 20
MDL applied for would, if granted, be a coal or oil shale 21
exploration tenement under that Act. 22
`(2) However, this subdivision does not apply, or ceases to apply, if-- 23
(a) the same person holds the lease and the MDL; or 24
(b) the overlapping land ceases to be in the area of the lease or the 25
MDL, or subject to the MDL application; or 26
(c) the person who made the MDL application (the "MDL 27
applicant") is also the lessee; or 28
795 Sections 133 (Application for exploration permit) and 183 (Application for mineral
development licence)
796 Section 141C (Application to vary conditions of existing permit)
s 968 618 s 968
Petroleum and Gas (Production and Safety) Bill 2004
(d) the MDL application is rejected; or 1
(e) the MDL holder or the MDL applicant has agreed in writing with 2
the lessee that this division does not apply. 3
`755 Substituted restriction on authorised activities 4
`(1) This section applies instead of section 318CI for the MDL or any 5
licence granted because of the MDL application.797 6
`(2) An authorised activity for the MDL may be carried out on the 7
overlapping land only if-- 8
(a) an agreement between the MDL holder and the lessee about 9
coordinated development or access on the overlapping land 10
provides that the activity may be carried out; or 11
(b) the required notice has been given and the carrying out of the 12
activity-- 13
(i) does not interfere with the carrying out of an authorised 14
activity under the lease on the overlapping land; and 15
(ii) is consistent with the safety management plan under the 16
Petroleum and Gas (Production and Safety) Act for any 17
operating plant on the overlapping land, the operation of 18
which is an authorised activity for the lease. 19
`(3) Subsection (2)(b) applies whether or not the authorised activity for 20
the lease has already started. 21
`(4) In this section-- 22
"required notice" means a notice from the MDL holder to the lessee, 23
given a reasonable period before the start of the authorised activity, 24
that states when and where the activity is proposed to be carried out. 25
`Subdivision 8--Development plans 26
`756 Application of sdiv 8 27
`This subdivision applies for any coal or oil shale mining lease in force 28
immediately before the commencement. 29
797 Section 318CI (Restriction)
s 968 619 s 968
Petroleum and Gas (Production and Safety) Bill 2004
`757 Deferral of obligation to comply with development plan 1
`Section 318DR798 does not apply for the coal or oil shale mining lease 2
until-- 3
(a) if its holder complies with section 758--when the Minister's 4
decision about whether to approve the holder's proposed 5
development plan takes effect; or 6
(b) if its holder does not comply with section 758--6 months after 7
the commencement.799 8
`758 Obligation to lodge proposed development plan 9
`(1) It is a condition of the coal or oil shale mining lease that its holder 10
must, within the relevant period, lodge at the following office a proposed 11
initial development plan for the lease-- 12
(a) the office of the department for lodging proposed development 13
plans, as stated in a gazette notice by the chief executive; 14
(b) if no office is gazetted under paragraph (a)--the office of the 15
chief executive. 16
`(2) The proposed plan must-- 17
(a) comply with the initial development plan requirements;800 and 18
(b) be accompanied by the fee prescribed under a regulation. 19
`(3) Section 318DP801 and part 7AA, division 9, subdivision 3,802 applies 20
for the proposed plan as if a reference in sections 318DZ to 318EA to a 21
proposed mining lease were a reference to the coal or oil shale mining 22
lease. 23
`(4) In this section-- 24
"relevant period" means-- 25
798 Section 318DR (Obligation to comply with development plan)
799 For when the decision takes effect, see section 318EH(3) and (4) (Steps after, and
taking effect, of decision), as applied under section 759.
800 See section 318ED (Later development plan requirements).
801 Section 318DP (Function and purpose).
802 Part 7AA, division 9, subdivision 3 (Approval of proposed initial development
plans)
s 968 620 s 968
Petroleum and Gas (Production and Safety) Bill 2004
(a) if, at the commencement, the lease has underground coal mining 1
operations or the holder is carrying out activities to manage or 2
mine coal seam gas--6 months after the commencement; or 3
(b) otherwise--6 months after the first anniversary of the grant of the 4
lease that happens after the commencement. 5
`759 Application of pt 7AA, div 9, sdiv 3 for approval of proposed plan 6
`(1) If the holder complies with section 758,803 part 7AA, division 9, 7
subdivision 3804 applies-- 8
(a) as if a reference in the subdivision to a proposed mining lease 9
were a reference to the coal or oil shale mining lease; and 10
(b) subject to section 760;805 and 11
(c) with other necessary changes. 12
`(2) For section 318AH,806 the reference to a development plan approved 13
under part 7AA, division 8 is taken to include a reference to a development 14
plan approved under division 8 as applied under subsection (1). 15
`760 Additional requirement for proposed development plan for 16
mineral hydrocarbon mining lease 17
`(1) If the coal or oil shale mining lease is a mineral hydrocarbon mining 18
lease, a proposed development plan for the lease lodged under section 758 19
must-- 20
(a) show that the lease holder proposes to commercialise coal seam 21
gas; or 22
(b) include, or be accompanied by, evidence that satisfies the 23
Minister that-- 24
(i) the holder has fully investigated the opportunities to 25
commercialise coal seam gas; and 26
803 Section 758 (Obligation to lodge proposed development plan)
804 Part 7AA, division 9, subdivision 3 (Approval of proposed initial development
plans)
805 Section 760 (Additional requirement for proposed development plan for mineral
hydrocarbon mining lease)
806 Section 318AH (What is a "development plan" and its "plan period")
s 968 621 s 968
Petroleum and Gas (Production and Safety) Bill 2004
(ii) there is no basis to commercialise coal seam gas 1
`(2) In this section-- 2
"commercialise", for coal seam gas, means to carry out commercial 3
mining of coal seam gas under the rights for the lease under 4
section 747(1).807 5
`761 Additional condition for proposed development plan for mineral 6
hydrocarbon mining lease 7
`(1) This section applies if-- 8
(a) the coal or oil shale mining lease is a mineral hydrocarbon 9
mining lease; and 10
(b) the lease holder has, under section 758, lodged a proposed 11
development plan for the lease; and 12
(c) the Minister is not satisfied as mentioned in section 760(1)(b). 13
`(2) The Minister may, by written notice, require the holder to carry out 14
further investigations and lodge a written report about the investigations 15
within a stated reasonable period at-- 16
(a) the office of the department for lodging the notice, as stated in a 17
gazette notice by the chief executive; or 18
(b) if no office is gazetted under paragraph (a)--the office of the 19
chief executive. 20
`(3) It is a condition of the lease that the holder must comply with the 21
requirement. 22
`(4) In this section-- 23
"investigations" includes discussions with the holder of any petroleum 24
authority the area of which is included in the area of the mineral 25
hydrocarbon mining lease. 26
807 Section 747 (Continuation of particular rights relating to coal seam gas under
mineral hydrocarbon mining leases)
s 968 622 s 968
Petroleum and Gas (Production and Safety) Bill 2004
`762 Omission of particular conditions to be superseded by 1
development plan 2
`(1) This section applies to a coal or oil shale mining lease as follows and 3
the condition of the lease stated opposite the lease-- 4
Mining lease Condition
number
ML 6949 condition 2.35 in the annexure to the lease
ML 70108 special condition and reservation 1 in schedule 3 to the
lease
ML 70241 the special condition in schedule B to the lease
`(2) From the first approval of a development plan for the lease after the 5
commencement the condition is no longer a condition of the lease. 6
`(3) The mining registrar must, as soon as practicable after the first 7
approval, amend the instrument of the lease to omit the condition. 8
`763 Development plan requirements for renewal applications if no 9
current development plan 10
`(1) This section applies for a renewal application for the coal or oil 11
shale mining lease if the lease does not yet have a development plan.808 12
`(2) Subsections (3) to (5) apply instead of section 318DI(2) and 318DJ 13
and 318DK.809 14
`(3) The application must include a proposed development plan for the 15
renewed lease. 16
`(4) The provisions of part 7AA, division 9, subdivision 3810 apply-- 17
(a) as if a reference in the subdivision to a proposed mining lease 18
were a reference to the coal or oil shale mining lease; and 19
(b) subject to section 760; and 20
808 See section 758 (Obligation to lodge proposed development plan)
809 Sections 318DI (General additional provisions for renewal application), 318DJ
(Applied provisions for renewal application) and 318DK (Mining lease taken to
have development plan until renewal application decided)
810 Part 7AA, division 9, subdivision 3 (Approval of proposed initial development
plans)
s 969 623 s 969
Petroleum and Gas (Production and Safety) Bill 2004
(c) with other necessary changes. 1
`(5) For section 318AH,811 the reference to a development plan approved 2
under part 7AA, division 8 is taken to include a reference to a development 3
plan approved under division 8 as applied under subsection (4).'. 4
969 Amendment of schedule (Dictionary) 5
(1) Schedule, definition "mineral"-- 6
omit. 7
(2) Schedule-- 8
insert-- 9
` "adjacent lease" see section 318CP(a). 10
"area", of a coal or oil shale mining tenement or petroleum tenure-- 11
1. The "area", of a coal or oil shale mining tenement, is the land to 12
which the tenement is subject. 13
2. The "area", of a petroleum tenure, is the land to which the tenure 14
is subject as recorded in the petroleum register under the 15
Petroleum Act 1923 or the Petroleum and Gas (Production and 16
Safety) Act. 17
"authorised activity"-- 18
1. An "authorised activity", for a mining tenement, is an activity 19
that its holder is, under this Act or the tenement, entitled to carry 20
out in relation to the tenement. 21
2. An "authorised activity", for a petroleum tenure, is an activity 22
that its holder is, under the Petroleum Act 1923, the Petroleum 23
and Gas (Production and Safety) Act or the tenure, entitled to 24
carry out in relation to the tenure. 25
"authority to prospect" see section 318AI(2). 26
"coal exploration tenement" see section 318AE(1). 27
"coal mining lease" see section 318AE(2). 28
"coal or oil shale mining tenement" see section 318AG. 29
"coal seam gas" see section 318AC(1). 30
811 Section 318AH (What is a "development plan" and its "plan period")
s 969 624 s 969
Petroleum and Gas (Production and Safety) Bill 2004
"coordination arrangement" see section 318AJ. 1
"CSG assessment criteria" see section 318AP(1)(c). 2
"CSG statement" see section 318AP(1)(a). 3
"designated CSG product" means coal seam gas mined from 4
pre-drainage, ventilation or from drainage of a goaf. 5
"development plan", for a coal mining lease or an oil shale mining lease, 6
see section 318AH. 7
"fee" includes tax. 8
"incidental coal seam gas" see section 318AC(2). 9
"information-giver", for part 7AA, division 10, see section 318EJ(1). 10
"initial development plan requirements" see section 318DS. 11
"later development plan requirements" see section 318EB(2)(b). 12
"mineral" see section 6. 13
"mining lease holder" for part 7AA, division 8, subdivisions 1 and 2, see 14
section 318CL. 15
"natural underground reservoir" means a part of a geological formation 16
or structure (including a coal seam) in which coal seam gas or 17
petroleum has accumulated. 18
"oil shale" see section 318AD. 19
"oil shale exploration tenement" see section 318AF(1). 20
"oil shale mining lease" see section 318AF(2). 21
"Petroleum and Gas (Production and Safety) Act" means the Petroleum 22
and Gas (Production and Safety) Act 2004. 23
"petroleum development preference" see section 318AX(3)(b). 24
"petroleum lease" see section 318AI(1). 25
"petroleum lease application period" see section 318BG(2). 26
"petroleum tenure" see section 318AI(3). 27
"plan period", for a development plan, see section 318AH(3). 28
"preference decision" see section 318BB(2). 29
"recipient", for part 7AA, division 10, see section 318EJ(1). 30
s 969 625 s 969
Petroleum and Gas (Production and Safety) Bill 2004
"relinquishment condition", for a coal mining lease or an oil shale 1
mining lease, see section 318BM(2).812 2
"specific purpose mining lease" means a mining lease that, under 3
section 234(1)(b), is granted for a purpose other than mining. 4
"submission period", for part 7AA, division 2, see section 318AX(2). 5
"submissions" means written submissions. 6
"the public interest", for part 7AA, see section 318AK.'. 7
(3) Schedule, definition "compensation agreement", 8
`section 318H(1)'-- 9
omit, insert-- 10
`section 318ET(1)'. 11
(4) Schedule, definition "compensation application", `section 318I(1)'-- 12
omit, insert-- 13
`section 318EU(1)'. 14
(5) Schedule, definition "land", after paragraph (d)-- 15
insert-- 16
`(e) subterranean land;'. 17
(6) Schedule, definition "notifiable road use", `section 318C'-- 18
omit, insert-- 19
`section 318EO'. 20
(7) Schedule, definition "road authority", `section 318B'-- 21
omit, insert-- 22
`section 318EN'. 23
(8) Schedule, definition "road use direction", `section 318E(1)'-- 24
omit, insert-- 25
`section 318EQ(1)'. 26
812 Section 318BM (Power to determine relinquishment condition)
s 970 626 s 973
Petroleum and Gas (Production and Safety) Bill 2004
PART 22--AMENDMENT OF NATIVE TITLE 1
(QUEENSLAND) ACT 1993 2
970 Act amended in pt 22 3
This part amends the Native Title (Queensland) Act 1993. 4
971 Amendment of s 4 (Definitions) 5
Section 4, definition "State mining Act"-- 6
insert as second last dot point-- 7
`. Petroleum and Gas (Production and Safety) Act 2004'. 8
972 Amendment of s 17 (Confirmation of ownership of natural 9
resources etc.) 10
(1) Section 17, example 1, `s 1.9 Mineral Resources Act 1989'-- 11
omit, insert-- 12
`s 8 Mineral Resources Act 1989'.
813
13
(2) Section 17, example 1, `s 5 Petroleum Act 1923'-- 14
omit, insert-- 15
`s 9814 Petroleum Act 1923 and s 26815 Petroleum and Gas (Production 16
and Safety) Act 2004'. 17
973 Amendment of s 144 (Declaration about compulsory acquisitions) 18
Section 144(2), definition "compulsory acquisition Act", `Petroleum Act 19
1923'-- 20
omit, insert-- 21
`Petroleum and Gas (Production and Safety) Act 2004'. 22
813 Mineral Resources Act 1989, section 8 (Crown's property in minerals)
814 Petroleum Act 1923, section 9 (Petroleum the property of the Crown)
815 Petroleum and Gas (Production and Safety) Act 2004, section 26 (Petroleum the
property of the State)
s 974 627 s 977
Petroleum and Gas (Production and Safety) Bill 2004
PART 23--AMENDMENT OF QUEENSLAND 1
INTERNATIONAL TOURIST CENTRE AGREEMENT 2
ACT REPEAL ACT 1989 3
974 Act amended in pt 23 4
This part amends the Queensland International Tourist Centre 5
Agreement Act Repeal Act 1989. 6
975 Amendment of s 18 (Operation of Acts) 7
Section 18-- 8
insert-- 9
`. Petroleum and Gas (Production and Safety) Act 2004'. 10
PART 24--AMENDMENT OF THIESS PEABODY COAL 11
PTY. LTD. AGREEMENT ACT 1962 12
976 Act amended in pt 24 13
This part amends the Thiess Peabody Coal Pty. Ltd. Agreement Act 1962. 14
977 Insertion of new s 4B 15
After section 4A-- 16
insert-- 17
`4B Termination of cl 18 of agreement 18
`(1) The following are terminated-- 19
(a) clause 18816 of the agreement; 20
(b) any rights the company has under that clause. 21
816 Agreement, clause 18 (Grant of special coal mining leases)
s 978 628 s 980
Petroleum and Gas (Production and Safety) Bill 2004
`(2) No amount, whether by way of compensation, reimbursement or 1
otherwise is payable by the State to the company or any other person for or 2
in connection with the enactment or operation of this section. 3
`(3) This section applies despite any other provision of this Act and any 4
other Act or law.'. 5
PART 25--AMENDMENT OF TORRES STRAIT 6
ISLANDER LAND ACT 1991 7
978 Act amended in pt 25 8
This part amends the Torres Strait Islander Land Act 1991. 9
979 Amendment of s 3 (Definitions) 10
(1) Section 3, definition "petroleum"-- 11
omit, insert-- 12
` "petroleum" means petroleum under the Petroleum and Gas (Production 13
and Safety) Act 2004.'. 14
(2) Section 3, definition "mining interest", `or the Petroleum Act 1923'-- 15
omit, insert-- 16
`, the Petroleum Act 1923 or the Petroleum and Gas (Production and 17
Safety) Act 2004'. 18
980 Amendment of s 85 (Royalties in relation to mining on Torres 19
Strait Islander land) 20
Section 85(1), `Petroleum Act 1923'-- 21
omit, insert-- 22
`Petroleum and Gas (Production and Safety) Act 2004'. 23
s 981 629 s 985
Petroleum and Gas (Production and Safety) Bill 2004
PART 26--AMENDMENT OF VALUATION OF LAND 1
ACT 1944 2
981 Act amended in pt 26 3
This part amends the Valuation of Land Act 1944. 4
982 Amendment of s 2 (Definitions) 5
Section 2, definition "petroleum lease", after `Petroleum Act 1923'-- 6
insert-- 7
`or the Petroleum and Gas (Production and Safety) Act 2004'. 8
983 Amendment of s 26 (Valuation of petroleum leases) 9
Section 26(2), definition "yearly rent", from `in respect of' to `that 10
Act'-- 11
omit, insert-- 12
`for a petroleum lease, means the annual rent under the Petroleum Act 13
1923 or the Petroleum and Gas (Production and Safety) Act 2004'. 14
PART 27--AMENDMENT OF WATER ACT 2000 15
984 Act amended in pt 27 16
This part amends the Water Act 2000. 17
985 Amendment of s 203 (Definition for pt 6) 18
(1) Section 203, heading, `Definition'-- 19
omit, insert-- 20
`Definitions'. 21
(2) Section 203-- 22
insert-- 23
s 986 630 s 986
Petroleum and Gas (Production and Safety) Bill 2004
` "petroleum tenure holder", for a water licence or proposed water 1
licence, means a person who-- 2
(a) holds a petroleum tenure under the Petroleum and Gas 3
(Production and Safety) Act 2004; and 4
(b) is not an owner mentioned in section 206(1). 5
"priority group", for a petroleum tenure holder or a licensee, means the 6
persons who have applied for, but have been refused, a water licence 7
to take underground water if the reason for the refusal was the effect 8
of the exercise of underground water rights under the Petroleum and 9
Gas (Production and Safety) Act 2004 by the holder or licensee.'. 10
986 Amendment of s 206 (Applying for a water licence) 11
(1) Section 206(4)(f)-- 12
renumber as section 206(4)(g). 13
(2) Section 206(4)-- 14
insert-- 15
`(f) a petroleum tenure holder;'. 16
(3) Section 206(5)-- 17
renumber as section 206(6). 18
(4) Section 206-- 19
insert-- 20
`(5) However, a petroleum tenure holder may apply for a water licence 21
only if-- 22
(a) the water-- 23
(i) is associated water under the Petroleum and Gas 24
(Production and Safety) Act 2004; and 25
(ii) is not being used, or proposed to be used, for an activity 26
that, under that Act, is an authorised activity for the tenure; 27
and 28
(b) the holder is, under that Act, carrying out-- 29
(i) approved testing for petroleum production; or 30
s 987 631 s 988
Petroleum and Gas (Production and Safety) Bill 2004
(ii) petroleum production for commercial purposes; and 1
(c) the holder has complied with section 206A.'. 2
987 Insertion of new s 206A 3
After section 206-- 4
insert-- 5
`206A Additional requirements for application by petroleum tenure 6
holder 7
`(1) This section applies if a petroleum tenure holder proposes to apply 8
for a water licence. 9
`(2) The chief executive must, if the holder asks, give the holder a notice 10
stating who are the members of the priority group for the holder. 11
`(3) The holder must give each member of the priority group a notice in 12
the approved form inviting each member to give the holder, within a stated 13
period, a written expression of interest about access to the water the subject 14
of the proposed licence. 15
`(4) The stated period must be at least 20 business days. 16
`(5) A water licence application by the holder must be accompanied by a 17
copy of-- 18
(a) the petroleum tenure; and 19
(b) each expression of interest given in response to the notice; and 20
(c) each environmental authority under the Environmental 21
Protection Act 1994 that relates to the petroleum tenure.'. 22
988 Amendment of s 209 (Applications that may be decided without 23
public notice) 24
Section 209(3), words before paragraph (b)-- 25
omit, insert-- 26
`(3) Subsection (4) applies to an application made under section 206-- 27
(a) by a petroleum tenure holder; or'. 28
s 989 632 s 991
Petroleum and Gas (Production and Safety) Bill 2004
989 Amendment of s 213 (Contents of water licence) 1
(1) Section 213(e)(vi)-- 2
renumber as section 213(e)(vii). 3
(2) Section 213(e)-- 4
insert-- 5
`(vi) a petroleum tenure holder; or'. 6
990 Amendment of s 214 (Conditions of water licence) 7
(1) Section 214(2)-- 8
insert-- 9
`(g) for a water licence granted to a petroleum tenure holder-- 10
(i) supply water in a stated volume or at a state rate to stated 11
members of the priority group for the licensee; and 12
(ii) limit the licensee's charges for supply to the priority group 13
members to an amount that is no more than the cost of the 14
supply and the cost of treating the water to make it fit for the 15
purpose for which it is supplied.'. 16
(2) Section 214(3) and (4)-- 17
renumber as section 214(4) and (5). 18
(3) Section 214-- 19
insert-- 20
`(3) However, a stated volume or rate of supply to a priority group 21
member must, as nearly as practicable, be the volume or rate that would 22
have been allowed to the member had the member's water licence 23
application been granted.'. 24
(4) Section 214(5), as renumbered, `subsection (3)'-- 25
omit, insert-- 26
`subsection (4)'. 27
991 Amendment of s 222 (Transferring water licence to another 28
person) 29
(1) Section 222(2) to (4)-- 30
s 992 633 s 993
Petroleum and Gas (Production and Safety) Bill 2004
renumber as section 222(3) to (5). 1
(2) Section 222-- 2
insert-- 3
`(2) However, if the licensee is a petroleum tenure holder, the licensee 4
may apply to transfer the licence only in a way that reflects a change in the 5
holding of the petroleum tenure.'. 6
992 Amendment of s 227 (Cancelling water licence) 7
(1) Section 227(2)-- 8
renumber as section 227(3). 9
(2) Section 227-- 10
insert-- 11
`(2) Without limiting subsection (1), the chief executive may cancel a 12
water licence granted to a petroleum tenure holder if-- 13
(a) the petroleum tenure ends; or 14
(b) the licensee ceases to carry out, under the Petroleum and Gas 15
(Production and Safety) Act 2004, any of the following and has 16
not stored an appropriate amount of associated water under that 17
Act-- 18
(i) approved testing for petroleum production; 19
(ii) petroleum production for commercial purposes.'. 20
993 Amendment of sch 4 (Dictionary) 21
(1) Schedule 4-- 22
insert-- 23
` "petroleum tenure holder", for chapter 2, part 6, see section 203. 24
(2) Schedule 4, definition "priority group"-- 25
omit, insert-- 26
` "priority group" for-- 27
(a) chapter 2, part 6, see section 203; or 28
s 993 634 s 993
Petroleum and Gas (Production and Safety) Bill 2004
(b) water allocations managed under a resource operations licence, 1
means the allocations that have the same water allocation 2
security objective.'. 3
635
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 1 1
REVIEWS AND APPEALS 2
sections 817(1) and 823(2) 3
Table 1: Decisions subject to review 4
Section reference Description of decision
387 Decision about whether proposed provision for
safety management plan is reasonable
622 Refusal of application for gas quality approval
625(1) Cancellation of gas quality approval
643(1) Prohibition or imposition of conditions on use or
operation of meter
646(2) Decision to give revision notice
646(3)(b) Decision about period to comply with revision
notice
681(2) Decision to give revision notice
681(3)(b) Decision about period to comply with revision
notice
763 Decision to seize a thing
772(1)(c) Fixing later period for return of seized thing
773(1)(c), (d) or (e) Forfeiture of seized thing
780(2) Decision to give compliance direction
780(2) and 781(1) Decision about period to remedy contravention or
avoid likely contravention the subject of
compliance direction
636
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 1 (continued)
Section reference Description of decision
783(2) Decision to give dangerous situation direction
783(2) and 784(1) Decision about period to take steps reasonably
necessary to prevent, remove or minimise danger
the subject of dangerous situation
798 Decision by chief inspector to take proposed
noncompliance action for gas work licence or gas
work authorisation
849 Refusal of application to chief inspector to replace
gas work licence or gas work authorisation
Table 2: Decisions, other than review decisions, subject to appeal 1
Section Description of decision Appeal
reference body
Authorities to
prospect
57 Refusal to approve proposed later work tribunal
program
62 Refusal to approve amendment to work tribunal
program
84 Refusal of renewal application tribunal
90 Refusal of application for declaration of tribunal
potential commercial area
93 Refusal of application to extend term of tribunal
declaration of potential commercial area
97 Decision to take proposed action under tribunal
section 96
637
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 1 (continued)
Section Description of decision Appeal
reference body
Petroleum
leases
120 Decision not to grant a petroleum lease on tribunal
ATP-related application
147 Refusal to approve proposed later tribunal
development plan
148 Deferral of approval of later development plan tribunal
164 Refusal of renewal application tribunal
437 Decision that claimant does not own stored tribunal
petroleum or prescribed storage gas
Water
monitoring
authorities
203 Decision to refuse amendment of water tribunal
monitoring authority or to grant water
monitoring authority subject to the applicant's
written agreement to the Minister amending
the authority in a stated way that the Minister
considers appropriate
Provisions for
existing Water
Act bores
260 Rejection of underground water impact report tribunal
263 Requirement to lodge amended pre-closure tribunal
report
271 Requirement to lodge an amended review tribunal
report
638
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 1 (continued)
Section Description of decision Appeal
reference body
Coordination
arrangements
242 Cancellation of coordination arrangement tribunal
Licences
410 Refusal to grant pipeline licence tribunal
431 Decision to give works direction tribunal
436(3) Amendment of pipeline licence condition tribunal
477 Refusal of licence amendment application tribunal
482 Refusal of renewal application tribunal
446 Refusal to grant petroleum facility licence tribunal
473 Decision to cancel part 5 permission tribunal
Decisions
under
chapter 4
488 Decision to require security tribunal
489 Decision to require additional security tribunal
517(1) Decision to give road use direction tribunal
526 Refusal to give public land authority approval tribunal
527(1) Imposition of condition on public land tribunal
authority approval, other than a condition
agreed to or requested by the relevant
petroleum authority holder
573(1) Refusal to approve permitted dealing tribunal
639
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 1 (continued)
Section Description of decision Appeal
reference body
578 Refusal to approve surrender of petroleum tribunal
authority
578(3) Decision to approve partial surrender of tribunal
petroleum authority subject to the applicant's
written agreement to the Minister amending
the conditions applying to the rest of the
authority in a stated way, if the applicant has
not agreed in writing to the amendment
587(2) Decision to take action to ensure compliance tribunal
with a requirement under this Act of a
petroleum authority holder, other than action
to which the holder has agreed
Noncompliance
action
798 Decision to take noncompliance action for tribunal
petroleum authority
798 Decision to take proposed noncompliance industrial
action for gas work licence or gas work court
authorisation
Other decisions
592 Decision about required measurement or tribunal
information
604 Decision that an amount for petroleum royalty tribunal
is payable and unpaid by petroleum producer
849 Refusal of application to replace instrument if tribunal
decision was made by the Minister
640
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 1
DICTIONARY 2
section 9 3
"1923 Act" means the Petroleum Act 1923. 4
"1923 Act ATP" means an authority to prospect under the 1923 Act. 5
"1923 Act lease" means a lease under the 1923 Act. 6
"1923 Act petroleum tenure" means a 1923 Act ATP or 1923 Act lease. 7
"acceptable level", of risk, see section 700. 8
"access agreement" see section 503(2). 9
"access land", for a petroleum authority, see section 502(3). 10
"access rights" see section 502(2). 11
"additional relinquishment condition" see section 62(5). 12
"adjacent lease" see section 113(a). 13
"affected party", for a meter, see section 660. 14
"appeal body" see section 823(2). 15
"appeal period", for a decision, means the period provided for under 16
section 824 for starting an appeal against the decision. 17
"application" includes a tender in response to a call for tenders. 18
"appropriately qualified", for the performance of a function or exercise 19
of a power, includes having the qualifications, experience and 20
competence to perform the function or exercise the power. 21
"approved auditor" means a person who, under chapter 6, part 4, holds an 22
appointment as an approved auditor. 23
"approved form" means the form approved under section 858. 24
"area"-- 25
1. The "area", of a petroleum authority, is the land to which the 26
authority is subject, as recorded in the petroleum register. 27
641
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
2. The "area", of a coal or oil shale mining tenement, is the land to 1
which the tenement is subject. 2
3. The "area" of a 1923 Act petroleum tenure is the land comprised 3
in the tenure or to which the tenure is subject, as recorded in the 4
petroleum register under that Act. 5
"area pipeline licence" see section 404(1)(a). 6
"associated water", for a petroleum tenure, see section 185(4). 7
"ATP-related application" see section 117(3). 8
"auditor-general" means the Queensland Auditor-General under the 9
Financial Administration and Audit Act 1977. 10
"authorised activity" see section 22. 11
"authorised officer" means a person who, under section 735, holds 12
appointment as an authorised officer. 13
"authority to prospect" see section 18(1)(a). 14
"available storage capacity", for a natural underground reservoir, see 15
section 208. 16
"block" see section 29(2). 17
"board of inquiry" means a board of inquiry established under 18
section 709. 19
"call for tenders" for-- 20
(a) chapter 2, part 1--see section 35(1); or 21
(b) chapter 2, part 2--see section 127(1). 22
"capability criteria" for-- 23
(a) chapter 2, part 1--see section 43(2); or 24
(b) chapter 2, part 2--see section 121(3). 25
"chief inspector" means the person who, under section 735, holds 26
appointment as the chief inspector, petroleum and gas. 27
"closing time", for a call for tenders-- 28
(a) for an authority to prospect--see section 35(2)(c); or 29
(b) for a petroleum lease--see section 127(2)(c). 30
642
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"coal exploration tenement" see section 301(1). 1
"coal mining-CSG operating plant" see section 671(3). 2
"coal mining lease" see section 301(2). 3
"Coal Mining Safety and Health Act" means the Coal Mining Safety and 4
Health Act 1999. 5
"coal or oil shale development preference" see section 314(3)(b). 6
"coal or oil shale mining tenement" see section 303. 7
"coal seam gas" see section 299(1). 8
"commercial viability report" see section 230. 9
"Commonwealth Native Title Act" means the Native Title Act 1993 10
(Cwlth). 11
"compensation agreement"-- 12
(a) for chapter 5, part 3--see section 520(1). 13
(b) for chapter 5, part 5--see section 532(1); or 14
"compensation application", for chapter 5, part 3, division 1, means an 15
application made under section 521(1). 16
"compensation liability"-- 17
(a) for chapter 5, part 3, division 1--see section 519(2); or 18
(b) otherwise--see section 531(3). 19
"competency assessment" see section 653(1). 20
"competency assessment notice" see section 653(1). 21
"compliance direction" see section 780(2). 22
"conditions", of a petroleum authority, see section 20. 23
"construct", a structure, includes placing the structure. 24
"consultation notice" see section 465(1). 25
"consultation period" see section 465(2)(c). 26
"consumer", of fuel gas, see section 619. 27
"contiguous", in relation to land, means abutting, with at least 1 side in 28
common. 29
643
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"controller", of a meter, see section 632. 1
"conviction" includes a finding of guilt, or the acceptance of a plea of 2
guilty, by a court, whether or not a conviction is recorded. 3
"coordination arrangement" means an arrangement under section 234 4
that, under section 236, has taken effect. 5
"costs", incurred by the State, includes the cost of services that the State 6
provides for itself. 7
"CSG assessment criteria" see section 305(1)(b). 8
"CSG statement" see section 305(1)(a). 9
"current owner", of stored petroleum or a prescribed storage gas, see 10
section 220(2). 11
"dangerous situation" means a situation relating to petroleum or fuel gas 12
in which an inspector reasonably believes an imminent risk of 13
material harm to persons or property is likely if action is not taken to 14
avoid, eliminate or minimise the risk. 15
"dangerous situation direction" see section 783(2). 16
"data acquisition activities" see section 176(1). 17
"data acquisition authority" see section 18(1)(c). 18
"development plan", for a petroleum lease, see section 24. 19
"development plan criteria" see section 141. 20
"distribution pipeline" see Gas Supply Act 2003, section 13. 21
"domestic purposes" includes irrigating a garden, not exceeding 0.25 ha, 22
being a garden cultivated for domestic use and not for the sale, barter 23
or exchange of goods produced in the garden. 24
"drill"-- 25
1. "drill" includes to bore. 26
2. "drill", a water supply bore, includes excavating the bore. 27
"eligible claimant", for compensation, see section 531(2). 28
"eligible person" see section 19. 29
"enter" a place includes the exercise of the rights in relation to the place 30
under section 854. 31
644
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"entry notice" see section 497(1)(a). 1
"entry period" see section 499(1)(b). 2
"Environmental Protection Act" means the Environmental Protection 3
Act 1994. 4
"excluded land" for-- 5
(a) an authority to prospect--means excluded land for the authority, 6
decided under section 99; or 7
(b) a petroleum lease--means excluded land for the lease, decided 8
under section 169. 9
"executive officer", of a corporation, means a person who is concerned 10
with, or takes part in, its management, whether or not the person is a 11
director or the person's position is given the name of executive 12
officer. 13
"executive safety manager", of an operating plant, see section 687. 14
"existing user", of a natural underground reservoir, see section 205(1) 15
and (6). 16
"existing Water Act bore" see section 245. 17
"exploring", for petroleum, see section 14. 18
"fee" includes tax. 19
"first authority", for chapter 5, part 4, see section 528(1). 20
"formed road" means any existing road or track on private or public land 21
used, or that may be reasonably be capable of being used, to drive or 22
ride motor vehicles. 23
"fuel gas" see section 11(2). 24
"gas device (type A)" see section 724(1). 25
"gas device (type B)" see section 724(3). 26
"gasification or retorting product" see section 10(2). 27
"gas quality agreement" see section 621(3). 28
"gas quality approval" see section 622(1). 29
"gas system" means a system that consists of installed gas devices 30
containers, fittings, flues or pipes, in any combination. 31
645
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
1
Examples of a gas system--
2
1. A system of interconnected domestic gas devices installed in a dwelling
3
house.
4
2. A gas-fired industrial boiler installation.
"gas work", for chapter 9, part 6, see section 725. 5
"gas work authorisation" see section 18(1)(i). 6
"gas work licence" see section 18(1)(h). 7
"geothermal exploration permit" means a geothermal exploration permit 8
under the Geothermal Exploration Act 2004. 9
"holder"-- 10
(a) of a petroleum authority, other than the following, means each 11
person recorded as its holder in the petroleum register-- 12
(i) a data acquisition authority; 13
(ii) a water monitoring authority that relates to only 1 petroleum 14
tenure; or 15
(b) of a data acquisition authority, means the person mentioned in 16
section 182; or 17
(c) of a water monitoring authority that relates to only 1 petroleum 18
tenure, means the person mentioned in section 201; or 19
(d) of a gas work licence or gas work authorisation, means each 20
person recorded as its holder in the register the chief inspector 21
keeps under section 730. 22
"impaired capacity", for an existing Water Act bore, see section 247. 23
"incident" means an event that-- 24
(a) involves, or involves a level of risk of, death of, or injury to, a 25
person or damage to property that is not at an acceptable level; 26
and 27
(b) happens-- 28
(i) at an operating plant, for any reason; or 29
(ii) at another place because of the presence, or perceived likely 30
presence, of petroleum or fuel gas or a prescribed storage 31
gas. 32
646
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"incidental coal seam gas" see section 299(2). 1
"independent viability assessment" see section 232(2). 2
"information-giver", for chapter 3, part 8, see section 390(1). 3
"information notice", for a decision, means a notice stating each of the 4
following-- 5
(a) the decision, and the reasons for it; 6
(b) all rights of review or appeal under this Act; 7
(c) the period in which any review or appeal under this Act must be 8
started; 9
(d) how rights of review or appeal under this Act are to be exercised; 10
(e) that a stay of a decision the subject of review or appeal under this 11
Act may be applied for under this Act. 12
"initial development plan requirements" see section 137. 13
"inspector" means a person who under section 735 holds appointment as 14
an inspector, petroleum and gas, or who is-- 15
(a) the chief inspector; or 16
(b) the deputy chief inspector. 17
"interfere with" includes tamper. 18
"land" includes-- 19
(a) land covered by Queensland waters; and 20
(b) subterranean land. 21
"later development plan requirements" see section 142. 22
"later work program requirements" see section 50. 23
"licence" see section 18(4). 24
"licensed water bore driller" means an individual who holds a water bore 25
driller's licence under the Water Act. 26
"LPG" see section 11(1). 27
"make good agreement" see section 272(1). 28
"make good obligation", for a petroleum tenure holder, see 29
section 250(3). 30
647
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"mandatory condition", of a petroleum authority, see section 20(2). 1
"measurement", of petroleum or fuel gas, see section 634. 2
"measurement scheme", for a meter, see section 633. 3
"meter" see section 631. 4
"mineable coal seam" means a mineable coal seam prescribed under 5
section 388(3)(a).817 6
"mineable oil shale deposit" means a mineable oil shale deposit 7
prescribed under section 690(1)(f)(i)(B).818 8
"Mineral Resources Act" means the Mineral Resources Act 1989. 9
"mining interest" means-- 10
(a) a mining tenement under the Mineral Resources Act; or 11
(b) a tenure held from the State under another Act about mining, 12
under which tenure the holder is authorised to carry out mining 13
under the Mineral Resources Act or a related mineral or energy 14
resources activity. 15
"mining lease" see Mineral Resources Act, schedule. 16
"mining lease application period" see section 323(2). 17
"mining tenement" means a mining tenement under the Mineral 18
Resources Act. 19
"monitoring report" means a report under section 266. 20
"natural underground reservoir" see section 13. 21
"negotiation notice" see section 221(2)(a). 22
"new authorities", for an application to divide an authority to prospect, 23
see section 103(1). 24
"new leases", for an application to divide a petroleum lease, see 25
section 171(1). 26
"noncompliance action" means action of a type mentioned in section 790. 27
"non-owner lease" see section 221(1). 28
817 Section 388 (Additional content requirements)
818 Section 690 (Content requirements for safety reports)
648
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"notice" means a written notice. 1
"notice of claim" see section 213(1). 2
"notifiable road use", for a petroleum authority, see section 515(1). 3
"occupier"-- 4
1. Other than for chapters 9 and 10, a person is the "occupier" of a 5
place only if-- 6
(i) under an Act, the person has a right to occupy the land, 7
other than under a mining interest; or 8
(ii) an occupier under subparagraph (i) has given the person the 9
right to occupy the land. 10
2. For chapters 9 and 10, an "occupier" of a place includes any one 11
who reasonably appears to be, claims to be or acts as if he or she 12
is, the occupier of the place. 13
"official" means the Minister, the chief executive, an inspector or an 14
authorised officer. 15
"oil shale" see section 300. 16
"oil shale exploration tenement" see section 302(1). 17
"oil shale mining lease" see section 302(2). 18
"old lease", for chapter 2, part 6, division 3, see section 212(1)(a). 19
"on", land or another place, includes across, attached to, in, under or over 20
the land or place. 21
"operate", a pipeline or petroleum facility-- 22
1. "Operate", a pipeline or petroleum facility, includes use, inspect, 23
test, maintain, repair, alter, add to and replace the pipeline or 24
facility. 25
2. For item 1, using a pipeline includes using it to transport 26
petroleum. 27
"operating plant" see section 670. 28
"operator", of an operating plant, see section 673. 29
"original authority", for an application to divide an authority to prospect, 30
see section 103(1). 31
649
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"original decision" see section 817(1). 1
"original lease", for an application to divide a petroleum lease, see 2
section 171(1). 3
"original notional sub-blocks" of an authority to prospect-- 4
1. The "original notional sub-blocks", of an authority to prospect, 5
are the sub-blocks stated in the instrument for the authority when 6
it was originally granted. 7
2. For item 1, if the authority states that its area includes land within 8
a block without including or excluding any particular sub-block, 9
the reference to the block is a reference to all sub-blocks within 10
the block, other than any sub-block that includes any of the 11
following land-- 12
(i) land in the area of another petroleum tenure; 13
(ii) excluded land for another petroleum tenure, other than a 14
petroleum lease mentioned in section 99(5)(b); 15
(iii) land in the area of a 1923 Act petroleum tenure; 16
(iv) excluded land for a 1923 Act petroleum tenure. 17
"overlapping ATP land", for a petroleum lease, see section 341(2)(c). 18
"owner"-- 19
1. An "owner", of land, means each person as follows in relation to 20
the land-- 21
(a) for freehold land--a registered owner; 22
(b) for land for which a person is, or will on performing 23
conditions, be entitled to a deed of grant in fee simple--the 24
person; 25
(c) if an estate in fee simple of land is being purchased from the 26
State--the purchaser; 27
(d) for a public road--the public road authority for the road; 28
(e) for land that is busway land, light rail land, rail corridor land 29
or a cane railway or other railway--the public land 30
authority for the land; 31
650
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
(f) for required land under the Transport Infrastructure Act 1
1994, section 436--the chief executive of the department in 2
which that Act is administered; 3
(g) for a forest entitlement area, State forest or timber reserve 4
under the Forestry Act 1959--the chief executive of the 5
department in which that Act is administered; 6
(h) for land in the Wet Tropics Area under the Wet Tropics 7
World Heritage Protection and Management Act 1993--the 8
Wet Tropics Management Authority; 9
(i) for a resources reserve under the Nature Conservation 10
Act 1992--a trustee for the reserve; 11
(j) for DOGIT land under the Aboriginal Land Act 1991 or the 12
Torres Strait Islander Land Act 1991--a trustee for the land; 13
(k) for land held under a lease under the Local Government 14
(Aboriginal Lands) Act 1978, section 3819--a relevant local 15
government; 16
(l) for Torres Strait Islander land under the Torres Strait 17
Islander Land Act 1991 that is taken to be a reserve because 18
of section 84(2) or 84(4)(b)820 of that Act--each grantee of 19
the land; 20
(m) for land under the Land Act 1994 for which there are 21
trustees--a trustee; 22
(n) for transport land under the Transport Planning and 23
Coordination Act 1994--the chief executive of the 24
department in which that Act is administered; 25
(o) for land vested in the Minister administering the Education 26
(General Provisions) Act 1989--that Minister; 27
(p) for land vested in the Queensland Housing Commission or 28
another Minister or a chief executive responsible for 29
819 Local Government (Aboriginal Lands) Act 1978, section 3 (Grant of leases to
councils)
820 Torres Strait Islander Land Act 1991, section 84 (Application of Mineral Resources
Act)
651
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
constructing public buildings--the Minister administering 1
the relevant Act; 2
(q) for land held from the State under another Act under an 3
interest less than fee simple (other than occupation rights 4
under a permit under the Land Act 1994)--the person who 5
holds the interest. 6
2. Also, a mortgagee of land is the "owner" of land if-- 7
(i) the mortgagee is acting as mortgagee in possession of the 8
land and has the exclusive management and control of the 9
land; or 10
(ii) the mortgagee, or a person appointed by the mortgagee, is in 11
possession of the land and has the exclusive management 12
and control of the land. 13
3. The "owner" of an existing Water Act bore is-- 14
(a) the person who owns the land on which the bore is located; 15
or 16
(b) any person who holds a lease over the land. 17
4. The "owner", of a thing that has been seized under this Act, 18
includes a person who would be entitled to possession of the 19
thing had it not been seized. 20
5. If land or another thing has more than 1 owner, a reference in this 21
Act to the owner of the land or thing is a reference to each of its 22
owners. 23
"ownership relinquishment notice" see section 223(3)(b). 24
"part 5 permission" see section 463. 25
"permitted dealing" see section 568. 26
"petroleum" see section 10. 27
"petroleum authority" see section 18(2). 28
"petroleum discovery" includes a discovery of a natural underground 29
reservoir that has, or is likely to have, commercial storage potential 30
under this Act. 31
"petroleum facility" see section 17. 32
652
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"petroleum facility land", for a petroleum facility licence, see 1
section 439. 2
"petroleum facility licence" see section 18(1)(g). 3
"petroleum lease" see section 18(1)(b). 4
"petroleum producer" means-- 5
(a) for petroleum produced under this Act--the petroleum tenure 6
holder who produces it or for whom it is produced; or 7
(b) for petroleum produced under the 1923 Act--the authority to 8
prospect holder or petroleum lease holder under that Act who 9
produces it or for whom it is produced; or 10
(c) for petroleum that is incidental coal seam gas mined under the 11
Mineral Resources Act, section 318CM821--the coal mining lease 12
or oil shale mining lease holder who mines it or for whom it is 13
mined. 14
"petroleum register" means the register the chief executive keeps under 15
section 564. 16
"petroleum royalty" means petroleum royalty imposed under section 590. 17
"petroleum tenure" see section 18(3). 18
"petroleum well"-- 19
1. A "petroleum well" is a hole in the ground made or being made 20
by drilling, boring or any other means-- 21
(a) to explore for or produce petroleum; or 22
(b) to inject petroleum or a prescribed storage gas into a natural 23
underground reservoir; or 24
(c) through which petroleum or a prescribed storage gas may be 25
produced. 26
2. For item 1, a prescribed storage gas is produced when it is 27
recovered or released to ground level from a natural underground 28
reservoir in which it has been contained or from which it is 29
extracted. 30
821 Mineral Resources Act, section 318CM (Limited entitlement to mine coal seam gas)
653
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
3. A "petroleum well" includes the casing for the well and any 1
wellhead for the well attached to it. 2
4. To remove any doubt, it is declared that a "petroleum well" does 3
not include any of the following-- 4
(a) a water observation bore; 5
(b) a water supply bore; 6
(c) an existing Water Act bore; 7
(d) a seismic shot hole or shallow hole drilled to work out a 8
geological structure. 9
"pipeline" see section 16. 10
"pipeline land", for a pipeline licence, see section 399. 11
"pipeline licence" see section 18(1)(f). 12
13
"place" includes land.
"plan period", for a development plan, means the period for which the 14
plan applies. 15
"point-to-point pipeline licence" see section 404(1)(b). 16
"potential commercial area", for an authority to prospect, means an area 17
declared under section 90 to be a potential commercial area for the 18
authority. 19
"pre-closure report" see section 261(1). 20
"preference decision" see section 319(2). 21
"prescribed odour", for fuel gas, see section 627. 22
"prescribed quality", for fuel gas, see section 620(1). 23
"prescribed storage gas" see section 12. 24
"prevent" includes each of the following-- 25
(a) hinder; 26
(b) obstruct. 27
"private land"-- 28
1. "Private land" is-- 29
(a) freehold land; or 30
654
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
(b) an interest in land less than fee simple held from the State 1
under another Act. 2
2. However, land is not private land to the extent of any of the 3
following interests in relation to the land-- 4
(a) a mining interest; 5
(b) an occupation right under a permit under the Land Act 6
1994; 7
(c) land owned by a public land authority. 8
"produced", for petroleum, see section 15. 9
"production commencement day", for a petroleum lease, see 10
section 123(3)(c). 11
"program period", for a work program, means the period for which the 12
program applies. 13
"proposed user", of a natural underground reservoir, see section 209(1). 14
"provision" of an authority under this Act, means a provision of the 15
authority, as defined under section 21. 16
"public land" means land other than private land, other than to the extent 17
of any of the following interests in relation to the land-- 18
(a) a mining interest; 19
(b) an occupation right under a permit under the Land Act 1994. 20
"public land authority" means-- 21
(a) for a public road--the road authority for the road; or 22
(b) if a local government or other authority is, under an Act, charged 23
with the control of the land--the local government or other 24
authority; or 25
(c) otherwise--the chief executive of the department administering 26
the Act under which entry to the land is administered. 27
"public land authority approval" see section 526(2)(b). 28
"public road" means an area of land that-- 29
(a) is open to, or used by, the public; and 30
(b) is developed for, or has as one of its main uses-- 31
655
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
(i) the driving or riding of motor vehicles; or 1
(ii) pedestrian traffic; and 2
(c) is controlled by a public road authority. 3
4
Examples of an area of land that may be included in a road--
5
· a bridge, culvert, ford, tunnel or viaduct
6
· a pedestrian or bicycle path
"public road authority", for a public road, means-- 7
(a) for a State-controlled road--the chief executive of the 8
department in which the Transport Infrastructure Act 1991 is 9
administered; or 10
(b) for another public road--the local government having the control 11
of the road. 12
"publish", a notice, means to publish it in any of the following ways-- 13
(a) in a journal published by the department or under the Minister's 14
authority; 15
(b) in another publication considered appropriate by-- 16
(i) generally--the Minister; or 17
(ii) if the subject of the notice relates to safety--the chief 18
inspector; 19
(c) on the department's web site on the internet; 20
(d) by placing it on a public notice board, established and maintained 21
by the department, at-- 22
(i) the department's head office; and 23
(ii) other places the chief executive considers appropriate. 24
"reasonably believes" means to believe on grounds that are reasonable in 25
the circumstances. 26
"reasonably suspects" means to suspect on grounds that are reasonable in 27
the circumstances. 28
"recipient", for chapter 3, part 8, see section 390(1). 29
"relevant arrangement", for chapter 2, part 2, see section 121(2)(b). 30
656
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"relevant environmental authority", for a petroleum authority, means an 1
environmental authority under the Environmental Protection Act 2
granted for all of the authorised activities for the petroleum authority 3
that are environmentally relevant activities under the Environmental 4
Protection Act. 5
"relevant environmental condition", for a petroleum authority, means a 6
condition of any relevant environmental authority for the petroleum 7
authority. 8
"relevant lease", for a coordination arrangement or proposed coordination 9
arrangement, see section 234(1). 10
"relevant official", for noncompliance action, see section 789(2). 11
"relinquishment condition"-- 12
(a) for an authority to prospect--see section 65(1); or 13
(b) for a petroleum lease--see section 329(2). 14
"remedial powers" see section 580(2). 15
"report" means a written report. 16
"required information", for chapter 5, part 7, division 1, subdivision 3, 17
see section 549. 18
"requirements for grant" see section 120(1). 19
"restoration measures", for an existing Water Act bore, see section 248. 20
"review application", for chapter 12, see section 817(1). 21
"review decision" see section 820(1)(b). 22
"reviewer" see section 817(3). 23
"road use direction" see section 517(1). 24
"royalty information" see section 594(4). 25
"royalty return" see section 594(3). 26
"safety management plan"-- 27
1. A "safety management plan", for an operating plant, is the plan 28
made under section 674 as in force from time to time. 29
2. If the plant has stages, a reference to the term includes each 30
safety management plan developed for each stage. 31
657
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"safety requirements" see section 669. 1
"satisfies", the capability criteria, for-- 2
(a) chapter 2, part 1--see section 43(3); or 3
(b) chapter 2, part 2--see section 121(4). 4
"second authority", for chapter 5, part 4, see section 528(1). 5
"security" includes bond, deposit of an amount as security, guarantee, 6
indemnity or other surety, insurance, mortgage and undertaking. 7
"service provider", for an affected party, see section 661. 8
"service provider test", for a meter, see section 662(1). 9
"share", of a petroleum authority, means any interest held by a person as a 10
holder of the authority in all of the area of the authority. 11
"site safety manager" means a site safety manager appointed under 12
section 692 or any operator mentioned in section 694. 13
"special criteria" for-- 14
(a) chapter 2, part 1--see section 35(2)(e)(iii); or 15
(b) chapter 2, part 2--see section 127(2)(e)(iii). 16
"specific purpose mining lease" means a mining lease that, under the 17
Mineral Resources Act, section 234(1)(b), is granted for a purpose 18
other than mining. 19
"stage", of an operating plant, see section 672. 20
"standard operating procedures", for an operating plant, is a 21
documented way of working, or an arrangement of facilities, at the 22
plant to achieve an acceptable level of risk. 23
"State-controlled road" see Transport Infrastructure Act 1994, 24
schedule 6. 25
"stock purposes" means watering stock of a number that would normally 26
be depastured on the land on which the water is, or is to be, used. 27
"storage agreement" see section 205(1) and (5). 28
"storage capacity", of a natural underground reservoir, means the measure 29
of its potential to store petroleum or a prescribed storage gas. 30
658
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
"structure" means anything built or constructed, whether or not attached 1
to land. 2
"sub-block" see section 29(2). 3
"submission" means a written submission. 4
"submission period", for chapter 3, part 2, see section 314(2). 5
"supply"-- 6
1. "Supply" means to supply by way of business. 7
2. The term includes each of the following-- 8
(a) give or sell; 9
(b) agree, attempt or offer to give or sell; 10
(c) advertise to give or sell; 11
(d) cause or permit to be given or sold; 12
(e) give away or swap. 13
"survey licence" see section 18(1)(e). 14
"takeover condition" see section 413(1). 15
"the public interest" means a consideration of each of the following-- 16
(a) government policy; 17
(b) value of commodity production (including time value); 18
(c) employment creation; 19
(d) total return to the State and to Australia (including royalty and 20
rent), assessed on both a direct and indirect basis, so that, for 21
example, downstream value adding is included; 22
(e) social impacts; 23
(f) the overall economic benefit for the State, or a part of the State, 24
in the short and long term. 25
"tolerance for error", for a meter, see section 635. 26
"transfer", of a petroleum well, water observation bore or water supply 27
bore, see section 285(2). 28
"transmission pipeline" means a pipeline operated, or to be operated, for 29
the primary purpose of conveying petroleum directly to a market after 30
659
Petroleum and Gas (Production and Safety) Bill 2004
SCHEDULE 2 (continued)
it has been processed, whether or not it is subsequently processed or 1
reprocessed. 2
"tribunal" means the Land and Resources Tribunal. 3
"trigger threshold", for an aquifer, means the trigger threshold for the 4
aquifer under chapter 2, part 9, division 3, subdivision 1. 5
"underground water" means water that occurs naturally in, or is 6
introduced artificially into, an aquifer, whether or not it would, if 7
tapped by a bore, flow naturally to the surface. 8
"underground water flow model", for existing Water Act bores, means an 9
underground water flow model that complies with section 257. 10
"underground water impact report" means an underground water 11
impact report lodged under section 256, as amended by any review 12
report. 13
"underground water rights", for a petroleum tenure, see section 185(2). 14
"unduly affected", for an existing Water Act bore, see section 246. 15
"unpaid petroleum royalty interest" means interest payable under 16
section 602. 17
"usual relinquishment" see section 66(3). 18
"validation test", for a meter, see section 666(2). 19
"waiver of entry notice" see section 497(3). 20
"Water Act" means the Water Act 2000. 21
"Water Act regulator" means the chief executive of the department that 22
administers the Water Act. 23
"water licence" means a licence under the Water Act. 24
"water monitoring authority" see section 18(1)(d). 25
"water observation bore" -- 26
1. A "water observation bore" is a bore to monitor water levels. 27
2. A reference to a water observation bore includes its casing, 28
wellhead and any other works constructed in connection with the 29
bore. 30
s 993 660 s 993
Petroleum and Gas (Production and Safety) Bill 2004
"water supply bore" means-- 1
(a) a water supply bore under section 185(7); or 2
(b) a petroleum well that, under chapter 2, part 10, division 2, has 3
been converted to a water supply bore. 4
"wellhead" means the casing head, and includes any casing hanger or 5
spool, or tubing hanger, and any flow control equipment up to and 6
including the wing valves. 7
"work program", for an authority to prospect, see section 23. 8
"work program criteria" see section 49(2). 9
"works direction" see section 431(2). 10
© State of Queensland 2004
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