PetrolmGasA04

Petr(Pro2004

Current Queensland

oleum and Gas duction and Safety) Act

as at 1 November 2013

Information about this reprint

This reprint shows the legislation current as at the date on the cover and is authorised bythe Parliamentary Counsel.

A new reprint of the legislation will be prepared by the Office of the QueenslandParliamentabe becausebecause a p

When a newnecessary tamendmenon the cowww.legisl

The endnotFor exampl

The tdetaiOffic

The legisluncoamenLegisinfor

The l

All Queenprevious nunot continury Counsel when any change to the legislation takes effect. This change may a provision of the original legislation, or an amendment to it, commences orarticular provision of the legislation expires or is repealed.

reprint is prepared, this reprint will become a historical reprint. Also, if it iso replace this reprint before a new reprint is prepared, for example, to includets with a retrospective commencement, an appropriate note would be includedver of the replacement reprint and on the copy of this reprint atation.qld.gov.au.

es to this reprint contain detailed information about the legislation and reprint.e

able of reprints endnote lists any previous reprints and, for this reprint, givesls of any discretionary editorial powers under the Reprints Act 1992 used by thee of the Queensland Parliamentary Counsel in preparing it.

list of legislation endnote gives historical information about the originalation and the legislation which amended it. It also gives details ofmmenced amendments to this legislation. For information about possibledments to the legislation by Bills introduced in Parliament, see the Queenslandlation Current Annotations at www.legislation.qld.gov.au/Leg_Info/

mation.htm.

ist of annotations endnote gives historical information at section level.

sland reprints are dated and authorised by the Parliamentary Counsel. Thembering system and distinctions between printed and electronic reprints are

ed.

PetroSafet

Conten

Chapter 1Part 11 2 Part 23 3A

4 5 6 6A 6B 6C 7 8 Part 3Division 19 Division 210 11 12 13 14 15 Queensland

leum and Gas (Production and y) Act 2004ts

PagePreliminaryIntroductionShort title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Purpose and application of ActMain purpose of Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Secondary purposefacilitation of Geothermal Energy Act 2010 and Greenhouse Gas Storage Act 2009 . . . . . . . . . . . . . . . 53Act binds all persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Application of Act to coastal waters of the State . . . . . . . . . . . . . 54Relationship with Mineral Resources Act . . . . . . . . . . . . . . . . . . . 54Relationship with Nature Conservation Act 1992 . . . . . . . . . . . . . 56Relationship with Geothermal Act and GHG storage Act. . . . . . . 56Declaration for Commonwealth Act . . . . . . . . . . . . . . . . . . . . . . . 56Act does not affect other rights or remedies. . . . . . . . . . . . . . . . . 56Native title. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57InterpretationDictionaryDefinitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Key definitionsMeaning of petroleum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Meaning of LPG and fuel gas. . . . . . . . . . . . . . . . . . . . . . . . . . . . 59What is a prescribed storage gas. . . . . . . . . . . . . . . . . . . . . . . . . 60What is a natural underground reservoir . . . . . . . . . . . . . . . . . . . 60What is exploring for petroleum . . . . . . . . . . . . . . . . . . . . . . . . . . 60When petroleum is produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Contents

Petroleum and Gas (Production and Safety) Act 2004

Page 2

15A What is produced water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6116 What is a pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6117 18 19 20 21 22 23 24 Division 324A Part 426 27 28 Part 529 30 30AA

30AB

30AC

30AD

30A Chapter 2Part 1Division 131 32 33 Division 2Subdivisio34

What is a petroleum facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Types of authority under Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Who is an eligible person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64What are the conditions of a petroleum authority. . . . . . . . . . . . . 64What are the provisions of a petroleum authority. . . . . . . . . . . . . 65What is an authorised activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . 65What is a work program for an authority to prospect . . . . . . . . . . 66What is a development plan for a petroleum lease. . . . . . . . . . . . 66Land access codeMaking of code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Property in petroleumPetroleum the property of the State . . . . . . . . . . . . . . . . . . . . . . . 67Petroleum reservation in land grants . . . . . . . . . . . . . . . . . . . . . . 68Property in petroleum produced. . . . . . . . . . . . . . . . . . . . . . . . . . 69General provisions for petroleum authoritiesGraticulation of earths surface into blocks and sub-blocks . . . . . 70Petroleum authority does not create an interest in land . . . . . . . . 70Extinguishing petroleum interests on the taking of land in a petroleum authoritys area (other than by an easement) . . . . . . . 70Effect of extinguishment of petroleum interests on the taking of land in a petroleum authoritys area (other than by an easement) 73Applications relating to land taken under a resumption law for which petroleum interests were extinguished. . . . . . . . . . . . . . . . 74Compensation for effect of taking of land in a petroleum authoritys area on petroleum interests . . . . . . . . . . . . . . . . . . . . 75Joint holders of a petroleum authority . . . . . . . . . . . . . . . . . . . . . 76Petroleum tenures and related mattersAuthorities to prospectKey authorised activitiesOperation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Exploration and testing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Obtaining authority to prospect

n 1 PreliminaryOperation of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Contents


Subdivision 2 Competitive tenders35 Call for tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7936 37 38 Subdivisio39 40 41 42 43 44 Division 3Subdivisio45 Subdivisio46 47 48 Subdivisio

49 Subdivisio50 51 52 53

54 Subdivisio55 56

57 58 Subdivisio59 Page 3

Right to tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Requirements for making tender . . . . . . . . . . . . . . . . . . . . . . . . . 81Right to terminate call for tenders . . . . . . . . . . . . . . . . . . . . . . . . 82

n 3 Deciding tendersProcess for deciding tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82Provisions for preferred tenderers . . . . . . . . . . . . . . . . . . . . . . . . 83Deciding whether to grant authority to prospect . . . . . . . . . . . . . . 84Provisions of authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . 84Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86Notice to unsuccessful tenderers . . . . . . . . . . . . . . . . . . . . . . . . . 86Work programs

n 1 Function and purpose of work programFunction and purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

n 2 Requirements for proposed initial work programsOperation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Program period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87General requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

n 3 Criteria for deciding whether to approve proposed initial work programsCriteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

n 4 Requirements for proposed later work programsOperation of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89General requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Program period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90Implementation of evaluation program for potential commercial area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Later work programs for proposed new authorities . . . . . . . . . . . 91

n 5 Approval of proposed later work programsApplication of sdiv 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91Authority taken to have work program until decision on whether to approve proposed work program . . . . . . . . . . . . . . . . . . . . . . . 91Deciding whether to approve proposed program . . . . . . . . . . . . . 92Steps after, and taking effect of, decision. . . . . . . . . . . . . . . . . . . 92

n 6 Amending work programsRestrictions on amending work program . . . . . . . . . . . . . . . . . . . 93

Contents


Page 4

60 Applying for approval to amend . . . . . . . . . . . . . . . . . . . . . . . . . . 9462 Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9563 Division 4Subdivisio64 Subdivisio65 65A 66 67 68 69 70 71 Subdivisio72 73 74 75 76 77 78 78A

79 80

Division 581 82 83 84 85 86 87

Steps after, and taking effect of, decision. . . . . . . . . . . . . . . . . . . 96Key mandatory conditions for authorities to prospect


n 2 Standard relinquishment condition and related provisionsStandard relinquishment condition . . . . . . . . . . . . . . . . . . . . . . . . 97Consequence of failure to comply with relinquishment condition . 98Part usually required to be relinquished . . . . . . . . . . . . . . . . . . . . 98Sub-blocks that can not be counted towards relinquishment . . . . 99Adjustments for sub-blocks that can not be counted . . . . . . . . . . 99Adjustment for particular potential commercial areas . . . . . . . . . 100Relinquishment must be by blocks . . . . . . . . . . . . . . . . . . . . . . . . 100Ending of authority to prospect if all of its area relinquished . . . . 100

n 3 Other mandatory conditionsRestriction on flaring or venting . . . . . . . . . . . . . . . . . . . . . . . . . . 101Permitted period for production or storage testing . . . . . . . . . . . . 101Obligation to consult with particular owners and occupiers . . . . . 102Petroleum royalty and annual rent . . . . . . . . . . . . . . . . . . . . . . . . 102Civil penalty for nonpayment of annual rent . . . . . . . . . . . . . . . . . 102Requirement to have work program . . . . . . . . . . . . . . . . . . . . . . . 103Compliance with exploration activities in work program . . . . . . . . 103Penalty relinquishment if work program not completed within extended period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Obligation to lodge proposed later work program. . . . . . . . . . . . . 104Consequence of failure to comply with notice to lodge proposed later work program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105RenewalsConditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . 106Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 106Continuing effect of authority for renewal application . . . . . . . . . . 107Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108Provisions and term of renewed authority . . . . . . . . . . . . . . . . . . 109Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Contents


88 When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111Division 6 Potential commercial areas89 90 91 92 93 94 Division 795 96 97 Division 8Subdivisio98 99 100 101

102 Subdivisio103 104 105 106 107 Part 2Division 1Subdivisio108 109 110 111 111A 112 Page 5

Applying for potential commercial area . . . . . . . . . . . . . . . . . . . . 111Deciding potential commercial area application . . . . . . . . . . . . . . 112Inclusion of evaluation program in work program. . . . . . . . . . . . . 113Term of declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113Extension of term of declaration. . . . . . . . . . . . . . . . . . . . . . . . . . 114Potential commercial area still part of authority . . . . . . . . . . . . . . 114Provisions to facilitate transition to petroleum leaseApplication of div 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115Ministerial direction to apply for petroleum lease . . . . . . . . . . . . . 115Taking proposed action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116Miscellaneous provisions

n 1 Area provisionsArea of authority to prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117Ministers power to decide excluded land . . . . . . . . . . . . . . . . . . . 118Minister may add excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . 119Area of authority to prospect reduced on grant of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Effect of ending of declaration of potential commercial area . . . . 120

n 2 Dividing authorities to prospectApplying to divide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 121Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122Provisions of new authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123Steps after deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 123Petroleum leasesKey authorised activities

n 1 General provisionsOperation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124Exploration, production and storage activities . . . . . . . . . . . . . . . 125Construction and operation of petroleum pipelines . . . . . . . . . . . 126Petroleum processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126Processing produced water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

Contents


Page 6

Subdivision 2 Provisions for coextensive natural underground reservoirs113 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129114

115 116 Division 2Subdivisio117 118 119

Subdivisio120 121 122 123 123A

124 125 Division 3Subdivisio126 Subdivisio127 128 129 Subdivisio130 131 132 133 134 135

Coordination arrangement may be made about mining or production from reservoir . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129Restriction on carrying out particular authorised activities . . . . . . 130Dispute resolution by Land Court . . . . . . . . . . . . . . . . . . . . . . . . . 131Transition from authority to prospect to petroleum lease

n 1 Applying for petroleum leaseWho may apply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132Requirements for making ATP-related application . . . . . . . . . . . . 132Continuing effect of authority to prospect for ATP-related application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

n 2 Deciding ATP-related applicationsRight to grant if requirements for grant met . . . . . . . . . . . . . . . . . 134Requirements for grant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135Exception for particular relevant arrangements . . . . . . . . . . . . . . 136Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . 137Provisions about grant and conditions of petroleum lease for coordinated project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 138When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139Obtaining petroleum lease by competitive tender


n 2 Calls for tendersCall for tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139Right to tender . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140Right to terminate call for tenders . . . . . . . . . . . . . . . . . . . . . . . . 141

n 3 Deciding tendersProcess for deciding tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141Provisions for preferred tenderers . . . . . . . . . . . . . . . . . . . . . . . . 142Deciding whether to grant petroleum lease . . . . . . . . . . . . . . . . . 143Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . 143Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144Notice to unsuccessful tenderers . . . . . . . . . . . . . . . . . . . . . . . . . 144

Contents


Division 4 Development plansSubdivision 1 Function and purpose of development plan136 Subdivisio137 138 139 140 Subdivisio

141 Subdivisio142 143 144 Subdivisio145 146

147 148 149 Division 5150 151 152 153 154 155 156 157 158 159 160

Division 6161 Page 7

Function and purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144n 2 Requirements for proposed initial development plans

Operation of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145General requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145Plan period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147Storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

n 3 Criteria for deciding whether to approve proposed initial development plansCriteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148

n 4 Requirements for proposed later development plansOperation of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148General requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148Later development plans for proposed new leases . . . . . . . . . . . 149

n 5 Approval of proposed later development plansApplication of sdiv 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149Petroleum lease taken to have development plan until decision on whether to approve proposed development plan. . . . . . . . . . . 150Deciding whether to approve proposed plan . . . . . . . . . . . . . . . . 150Power to require relinquishment . . . . . . . . . . . . . . . . . . . . . . . . . . 151Steps after, and taking effect of, decision. . . . . . . . . . . . . . . . . . . 152Key mandatory conditions for petroleum leasesOperation of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152Restriction on flaring or venting . . . . . . . . . . . . . . . . . . . . . . . . . . 153Permitted period for production or storage testing . . . . . . . . . . . . 154Obligation to consult with particular owners and occupiers . . . . . 154Obligation to commence production. . . . . . . . . . . . . . . . . . . . . . . 155Petroleum royalty and annual rent . . . . . . . . . . . . . . . . . . . . . . . . 155Civil penalty for nonpayment of annual rent . . . . . . . . . . . . . . . . . 155Requirement to have development plan . . . . . . . . . . . . . . . . . . . . 156Compliance with development plan . . . . . . . . . . . . . . . . . . . . . . . 156Obligation to lodge proposed later development plan . . . . . . . . . 156Consequence of failure to comply with notice to lodge proposed later development plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158RenewalsConditions for renewal application . . . . . . . . . . . . . . . . . . . . . . . . 158

Contents


Page 8

162 Requirements for making renewal application . . . . . . . . . . . . . . . 159163 Continuing effect of lease for renewal application . . . . . . . . . . . . 160164 165 166 167 Division 7Subdivisio168 169 170 Subdivisio171 172 173 174 175 Subdivisio175AA

175AB 175AC 175AD Part 2A175A 175B 175C 175D 175E

175F 175G 175H 175I

Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160Provisions and term of renewed lease . . . . . . . . . . . . . . . . . . . . . 161Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 162When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162Miscellaneous provisions

n 1 Area of petroleum leaseArea of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162Ministers power to decide excluded land . . . . . . . . . . . . . . . . . . . 163Minister may add excluded land . . . . . . . . . . . . . . . . . . . . . . . . . . 164

n 2 Dividing petroleum leasesApplying to divide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 166Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166Provisions of new leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167Steps after deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . 168

n 3 Changing production commencement dayWhen holder may apply to change production commencement day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 169Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169Information notice about decision. . . . . . . . . . . . . . . . . . . . . . . . . 170Prospective Gas Production Land ReserveMeaning of Australian market supply condition . . . . . . . . . . . . . . 170Meaning of Australian market. . . . . . . . . . . . . . . . . . . . . . . . . . . . 171Supply of gas from PGPLR land . . . . . . . . . . . . . . . . . . . . . . . . . 171Urgent exemption from application of s 175C(3)(a) . . . . . . . . . . . 172Suspension of application of, or exemption from, Australian market supply condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173Assessing commercial viability. . . . . . . . . . . . . . . . . . . . . . . . . . . 173Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174Requirement to keep and give records. . . . . . . . . . . . . . . . . . . . . 174Order to enforce compliance with s 175C . . . . . . . . . . . . . . . . . . 175

Contents


Part 3 Data acquisition authoritiesDivision 1 Obtaining data acquisition authority176 177 178 179 Division 2180 181 182

183 184 184A Part 4185 187 188 189 Part 5Division 1190 191 192 Division 2193 194 195 196 197 198 199 Division 3200 201 202 Page 9

Who may apply for data acquisition authority. . . . . . . . . . . . . . . . 176Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 176Deciding application for data acquisition authority . . . . . . . . . . . . 176Notice of refusal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178Provisions for data acquisition authoritiesKey authorised activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178Additional condition of relevant petroleum tenure . . . . . . . . . . . . 179Authority holder is the relevant petroleum tenure holder from time to time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179Authority ends if relevant petroleum tenure ends . . . . . . . . . . . . . 179Relationship with subsequent petroleum tenure . . . . . . . . . . . . . 179Annual rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180Water rights for petroleum tenuresUnderground water rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180Water monitoring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182Authorisation for Water Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182Water Act not otherwise affected . . . . . . . . . . . . . . . . . . . . . . . . . 182Water monitoring authoritiesObtaining water monitoring authorityWho may apply for water monitoring authority . . . . . . . . . . . . . . . 183Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 183Deciding application for water monitoring authority . . . . . . . . . . . 183Key authorised activitiesOperation of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185Water monitoring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185Limited right to take or interfere with underground water . . . . . . . 186Authorisation for Water Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186Water Act not otherwise affected . . . . . . . . . . . . . . . . . . . . . . . . . 186Restriction on carrying out authorised activities. . . . . . . . . . . . . . 186No right to petroleum discovered . . . . . . . . . . . . . . . . . . . . . . . . . 187Miscellaneous provisionsTerm of authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187Provision for who is the authority holder. . . . . . . . . . . . . . . . . . . . 187Additional condition of relevant petroleum tenure . . . . . . . . . . . . 188

Contents


Page 10

202A Annual rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188203 Amending water monitoring authority by application . . . . . . . . . . 188Part 6

Division 1204 Division 2Subdivisio205 206 207 Subdivisio

208 209 210 211 Division 3

Subdivisio212 Subdivisio213 214

Subdivisio215 216

Subdivisio217 218 219 220 221 222 223

Third party storage access to natural underground reservoirsPurpose of partPurpose of pt 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189Storage agreements and related provisions

n 1 Storage agreementsMeaning of storage agreement and existing user . . . . . . . . . . . . 189Development plan overrides storage agreement . . . . . . . . . . . . . 190Existing users obligation to give information . . . . . . . . . . . . . . . . 190

n 2 Negotiation obligations of petroleum lease holders and existing usersApplication of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191Obligation to negotiate with proposed users . . . . . . . . . . . . . . . . 192Obligation about priority for proposed users. . . . . . . . . . . . . . . . . 192Obligation to give information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193Provisions for stored petroleum or prescribed storage gas after petroleum lease ends

n 1 PreliminaryApplication of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

n 2 Claiming stored petroleum or prescribed storage gasNotice to claim for stored petroleum or prescribed storage gas . . 195Property in stored petroleum or prescribed storage gas if no notice of claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

n 3 Deciding claimsDeciding claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196State property in stored petroleum or prescribed storage gas to extent claims are not upheld. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196

n 4 Dealing with upheld claimsApplication of sdiv 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197Call for tenders required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197Requirement to notify change in ownership . . . . . . . . . . . . . . . . . 197Preferred tenderer may make storage agreements . . . . . . . . . . . 198Negotiation notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198Obligation of holder to negotiate with current owners . . . . . . . . . 199Taking of effect of non-owner lease . . . . . . . . . . . . . . . . . . . . . . . 199

Contents


224 Cancellation of non-owner lease in particular circumstances . . . 200225 Annual rent for non-owner lease . . . . . . . . . . . . . . . . . . . . . . . . . 200226

227 Division 4228 229 Part 7230 231 232 233 Part 8234 235

236 237 238

239 240 241 242 243 Part 10

Division 1281 282

Division 2283 284 Page 11

State property in stored petroleum or prescribed storage gas in particular circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200Storage rent payable by current owner. . . . . . . . . . . . . . . . . . . . . 200Regulatory provisionsProhibition on actions preventing access . . . . . . . . . . . . . . . . . . . 201Orders to enforce prohibition on preventing access . . . . . . . . . . . 202Commercial viability assessmentMinisters power to require commercial viability report. . . . . . . . . 203Required content of commercial viability report . . . . . . . . . . . . . . 204Ministers power to obtain independent viability assessment . . . . 205Costs of independent viability assessment . . . . . . . . . . . . . . . . . 205Petroleum activities coordinationArrangement to coordinate petroleum activities . . . . . . . . . . . . . . 206Applying for ministerial approval of proposed coordination arrangement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208Ministerial approval of proposed coordination arrangement. . . . . 209Approval does not confer right to renew. . . . . . . . . . . . . . . . . . . . 210Subleasing of 1923 Act lease provided for under coordination arrangement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211Coordination arrangement overrides relevant leases . . . . . . . . . . 211Grant of pipeline licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211Amendment or cancellation by parties to arrangement . . . . . . . . 212Ministers power to cancel arrangement . . . . . . . . . . . . . . . . . . . . 212Effect of cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213General provisions for petroleum wells, water supply bores and water observation boresRestrictions on drillingRequirements for drilling petroleum well . . . . . . . . . . . . . . . . . . . 213Restriction on who may drill water observation bore or water supply bore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214Converting petroleum well to water supply boreRestrictions on making conversion. . . . . . . . . . . . . . . . . . . . . . . . 214Notice of conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215

Contents


Page 12

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

Subdivision 1 General provisions285 286 287 Subdivisio288

289

290

Subdivisio291

Division 4

292 293 294 Chapter 3Part 1Division 1295 296 297 298 Division 2299 300 301 302

303

Operation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215Transfer only permitted under div 3 . . . . . . . . . . . . . . . . . . . . . . . 216Effect of transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216

n 2 Permitted transfersTransfer of water observation bore or water supply bore to landowner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216Transfer of petroleum well to holder of geothermal tenure or mining tenement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217Transfer of water observation bore to petroleum tenure or water monitoring authority holder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217

n 3 Notice of transferNotice of transfer to Water Act regulator or Mineral Resources Act chief executive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218Decommissioning of petroleum wells, water observation bores and water supply boresObligation to decommission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218Right of entry to facilitate decommissioning . . . . . . . . . . . . . . . . . 220Responsibility for well or bore after decommissioning . . . . . . . . . 220Provisions for coal seam gasPreliminaryIntroductionMain purposes of ch 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222How main purposes are achieved . . . . . . . . . . . . . . . . . . . . . . . . 223Relationship with chs 2 and 5 and ch 15, pt 3 . . . . . . . . . . . . . . . 224Description of petroleum leases for ch 3 and ch 15, pt 3 . . . . . . . 225Definitions for chapter 3What is coal seam gas and incidental coal seam gas . . . . . . . . . 225What is oil shale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225What is a coal exploration tenement and a coal mining lease . . . 225What is an oil shale exploration tenement and an oil shale mining lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226What is a coal or oil shale mining tenement. . . . . . . . . . . . . . . . . 226

Contents


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

Subdivisio304 Subdivisio305 306 Subdivisio307

308 Subdivisio

310 311 312

313 314 Subdivisio

315 316

317 Subdivisio

318 319

320 321 Subdivisio

322 323 Page 13

with the consent of, coal or oil shale exploration tenement holder


n 2 Provisions for making petroleum lease applicationAdditional requirements for making application . . . . . . . . . . . . . . 228Content requirements for CSG statement . . . . . . . . . . . . . . . . . . 229

n 3 Provisions for applications in particular circumstancesApplications relating to exploration tenement and mining lease not held by same person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230Applications relating to other land . . . . . . . . . . . . . . . . . . . . . . . . 231

n 4 Obligations of applicant and coal or oil shale exploration tenement holderApplicants obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231Minister may require further negotiation. . . . . . . . . . . . . . . . . . . . 233Consequence of applicant not complying with obligations or requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234Obligations of coal or oil shale exploration tenement holder . . . . 234Submissions by coal or oil shale exploration tenement holder. . . 234

n 5 Priority for earlier coal or oil shale mining lease application or proposed applicationEarlier coal or oil shale mining lease application . . . . . . . . . . . . . 235Proposed coal or oil shale mining lease for which EIS approval given . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236Proposed mining lease declared a coordinated project . . . . . . . . 237

n 6 Ministerial decision about whether to give any preference to development of coal or oil shale resourcesWhen preference decision is required . . . . . . . . . . . . . . . . . . . . . 238Decision about whether to give any preference to development of coal or oil shale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240Reference to Land Court before making preference decision . . . 240Restrictions on giving preference . . . . . . . . . . . . . . . . . . . . . . . . . 241

n 7 Process if preference decision is to give any preference to development of coal or oil shale resourcesApplication of sdiv 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242Notice to applicant and coal or oil shale exploration tenement holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

Contents


Page 14

324 Mining lease application for all of the land . . . . . . . . . . . . . . . . . . 243325 Mining lease application for part of the land. . . . . . . . . . . . . . . . . 243326 Subdivisio327 328 329 330 Division 2

331 332 333 334 335

336 338

339 340 341 Division 3

342 Part 3

Division 1343 Division 2

344 345 346 348 349

350

No mining lease application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244n 8 Deciding petroleum lease

Application of sdiv 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244Additional criteria for deciding provisions of petroleum lease. . . . 245Power to impose relinquishment condition . . . . . . . . . . . . . . . . . . 245Publication of outcome of application . . . . . . . . . . . . . . . . . . . . . . 246Petroleum lease application by or jointly with, or with the consent of, coal or oil shale exploration tenement holderApplication of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247Right to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . 248Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 248No calls for tenders after application made . . . . . . . . . . . . . . . . . 248Applications relating to exploration tenement and mining lease not held by same person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249Applications relating to other land . . . . . . . . . . . . . . . . . . . . . . . . 249Priority for earlier mining lease application or proposed application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250Priority for deciding earlier petroleum lease application. . . . . . . . 250Right to grant if particular requirements met . . . . . . . . . . . . . . . . 250Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . 251Petroleum lease applications in response to Mineral Resources Act preference decisionAdditional ground for refusing application . . . . . . . . . . . . . . . . . . 252Obtaining petroleum lease over land in area of coal or oil shale mining leaseExclusion of power to call for tendersExclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253Petroleum lease application other than by or jointly with coal or oil shale mining lease holderApplication of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253Additional requirements for making application . . . . . . . . . . . . . . 254Applications relating to other land . . . . . . . . . . . . . . . . . . . . . . . . 254Notice to coal or oil shale mining lease holder . . . . . . . . . . . . . . . 255Coal mining lease holders or oil shale mining lease holders obligation to negotiate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255Additional requirements for grant . . . . . . . . . . . . . . . . . . . . . . . . . 256

Contents


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

351 Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257352 353 354 356 357 Part 4

Division 1

358 Division 2

359 360 Division 3361 Division 4362

363 Part 4ADivision 1363A 363B 363C Division 2363D 363E 363F 363G Division 3363H 363I 363J Page 15

Right to apply for petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . 257Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 257Applications relating to other land . . . . . . . . . . . . . . . . . . . . . . . . 258Right to grant if particular requirements met . . . . . . . . . . . . . . . . 258Provisions of petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . 259Additional provisions for authorities to prospect and data acquisition authoritiesGrant of authority to prospect in area of coal or oil shale exploration tenementProvisions for authority to prospect . . . . . . . . . . . . . . . . . . . . . . . 260Restriction on authorised activities on coal mining lease or oil shale mining lease landApplication of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260Restriction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261Exceptions to particular area provisionsExceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261ConditionsNotice to coal or oil shale exploration tenement holders and applicants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261Compliance with obligations under Mineral Resources Act . . . . . 262Additional provisions if overlapping mineral (f) pilot tenurePreliminaryDefinitions for pt 4A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262Application of pt 4A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263Relationship with other provisions . . . . . . . . . . . . . . . . . . . . . . . . 263General suspensionSuspension of authorised activities for authority to prospect . . . . 263Entry rights for particular activities during suspension . . . . . . . . . 264Notice of entry under s 363E . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265Ministerial power to suspend authority to prospect requirements 266Resolving disputesNegotiation and request to Minister . . . . . . . . . . . . . . . . . . . . . . . 267Reference to Land Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268Decision by Minister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268

Contents


Page 16

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

363K Additional provision about area of petroleum lease . . . . . . . . . . . 268363L

Part 5Division 1

364 Division 2365

366

367 368

Division 3Subdivisio369 Subdivisio370 371

372 373 Subdivisio374 375 376 Division 4377

Division 5378 Division 6379

Minister may add land to petroleum lease if mineral (f) tenure ends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269Additional provisions for petroleum leasesRestriction on authorised activities for particular petroleum leasesRestriction on authorised activities on overlapping ATP land. . . . 270ConditionsContinuing requirement for coordination arrangement for particular petroleum leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272Compliance with obligation to negotiate with coal or oil shale mining lease applicant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273Requirement for giving of copy of relinquishment report . . . . . . . 273Cessation of relinquishment condition for area not overlapping with coal or oil shale exploration tenement. . . . . . . . . . . . . . . . . . 273Amendment of relinquishment condition by application


n 2 Making application to amend relinquishment conditionConditions for applying to amend. . . . . . . . . . . . . . . . . . . . . . . . . 274Obligation of coal or oil shale exploration tenement holder to negotiate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 275Notice of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276

n 3 Deciding amendment applicationSubmissions by coal or oil shale exploration tenement holder. . . 276Minister may require further negotiation. . . . . . . . . . . . . . . . . . . . 277Deciding amendment application . . . . . . . . . . . . . . . . . . . . . . . . . 277Restriction on amendment of other conditionsInterests of relevant coal or oil shale mining tenement holder to be considered. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278RenewalsApplied provisions for making and deciding renewal application . 279Restrictions on particular transfersRequirement for coordination arrangement to transfer petroleum lease in tenure area of mining lease . . . . . . . . . . . . . . . . . . . . . . 280

Contents


Part 6 Additional provisions for development plansDivision 1 Initial development plansSubdivisio

380 381

382 383

Subdivisio383A 383B 383C Division 2Subdivisio

383D Subdivisio384 Part 7385 386

387

388 389 Part 8390 391 392 Chapter 3APart 1392AA 392AB 392AC Page 17

n 1 Additional requirements for proposed initial development planOperation of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281Statement about interests of coal or oil shale mining tenement holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281Requirement to optimise petroleum production . . . . . . . . . . . . . . 281Consistency with coal or oil shale mining lease development plan and relevant coordination arrangement . . . . . . . . . . . . . . . . 282

n 2 Other additional provisionsApplication of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282Additional criteria for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . 282Restriction on approval. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282Later development plans

n 1 Additional requirements for proposed later development plansAdditional requirements under div 1, sdiv 1 apply . . . . . . . . . . . . 283

n 2 Other additional provisionsAdditional criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283Additional provisions for safety management planGrant of petroleum lease does not affect obligation to make plan 284Requirements for consultation with particular coal or oil shale mining tenement holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284Resolving disputes about provision proposed by coal or oil shale exploration tenement holder . . . . . . . . . . . . . . . . . . . . . . . . 286Additional content requirements. . . . . . . . . . . . . . . . . . . . . . . . . . 286Exemption from additional content requirements . . . . . . . . . . . . . 287Confidentiality of informationApplication of pt 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289Confidentiality obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289Civil remedies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290Provisions for geothermal tenures and GHG authoritiesPreliminaryRelationship with chs 2 and 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . 290What is an overlapping authority (geothermal or GHG) . . . . . . . . 291General provision about petroleum authorities for land subject to geothermal tenure or GHG authority . . . . . . . . . . . . . . . . . . . . . . 291

Contents


Page 18

Part 2 Obtaining petroleum lease if overlapping tenureDivision 1 Preliminary392AD Division 2392AE 392AF Division 3392AG 392AH Division 4392AI 392AJ 392AK 392AL Division 5

392AM 392AN 392AO 392AP 392AQ Division 6

392AR Division 7392AS 392AT

392AU 392AV Part 3392AW 392AX

392AY

Application of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292Requirements for applicationRequirements for making application . . . . . . . . . . . . . . . . . . . . . . 292Content requirements for information statement . . . . . . . . . . . . . 293Consultation provisionsApplicants information obligation . . . . . . . . . . . . . . . . . . . . . . . . . 293Submissions by overlapping tenure holder. . . . . . . . . . . . . . . . . . 294Resource management decision if overlapping permitApplication of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295Resource management decision . . . . . . . . . . . . . . . . . . . . . . . . . 295Criteria for decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296Restrictions on giving overlapping authority priority . . . . . . . . . . . 296Process if resource management decision is to give overlapping authority priorityApplication of div 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297Notice to applicant and overlapping permit holder . . . . . . . . . . . . 297Overlapping lease application for all of the land. . . . . . . . . . . . . . 297Overlapping lease application for part of the land . . . . . . . . . . . . 298No overlapping lease application . . . . . . . . . . . . . . . . . . . . . . . . . 299Resource management decision not to grant and not to give priorityLapsing of application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299Deciding applicationApplication of div 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299Application may be refused if no reasonable prospects of future geothermal or GHG coordination arrangement . . . . . . . . . . . . . . 300Additional criteria for deciding provisions of petroleum lease. . . . 301Publication of outcome of application . . . . . . . . . . . . . . . . . . . . . . 301Priority to particular geothermal or GHG lease applicationsEarlier geothermal or GHG lease application. . . . . . . . . . . . . . . . 302Proposed geothermal or GHG lease for which EIS approval given . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302Proposed geothermal or GHG lease declared a coordinated project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303

Contents


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

392AZ Application of pt 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304392BA Part 5Division 1

392BB 392BC 392BD Division 2392BE

392BF

392BG

Division 3

392BH Part 6

392BI 392BJ 392BK

392BL Part 7392BM 392BN

392BO

Chapter 4Part 1Division 1393 394 Page 19

Additional ground for refusing application . . . . . . . . . . . . . . . . . . 304Additional provisions for petroleum authoritiesRestrictions on authorised activities for particular petroleum authoritiesOverlapping geothermal or GHG lease . . . . . . . . . . . . . . . . . . . . 305Overlapping geothermal permit or particular GHG authorities . . . 306Resolving disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306Additional conditionsNotice by authority to prospect holder to particular geothermal tenure or GHG authority holders or applicants. . . . . . . . . . . . . . . 307Condition to notify particular geothermal tenure or GHG authority holders of proposed start of particular authorised activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308Requirement to continue geothermal or GHG coordination arrangement after renewal of or dealing with petroleum lease. . . 309Restriction on Ministers power to amend petroleum lease if overlapping tenureInterests of overlapping tenure holder to be considered . . . . . . . 310Additional provisions for development plans if overlapping tenureOperation of pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310Statement about interests of overlapping tenure holder. . . . . . . . 310Consistency with overlapping tenures development plan and with any relevant coordination arrangement. . . . . . . . . . . . . . . . . 311Additional criteria for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . 311Additional provisions for safety management plansGrant of petroleum lease does not affect obligation to make plan 311Requirements for consultation with particular overlapping tenure holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312Application of provisions for resolving disputes about reasonableness of proposed provision. . . . . . . . . . . . . . . . . . . . . 313Licences and related mattersSurvey licencesKey authorised activitiesPurpose of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314Surveying activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314

Contents


Page 20

Division 2 Obtaining survey licence395 Applying for licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315396 397 Part 2Division 1Subdivisio398 399 399A Subdivisio400

Subdivisio401 402

403 Division 2404 405 406 Division 3Subdivisio407 409 409A Subdivisio410 411 412 412A

413 414 415 416

Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316Pipeline licencesKey authorised activities

n 1 PreliminaryOperation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317What is pipeline land for a pipeline licence. . . . . . . . . . . . . . . . . . 318Written permission binds owners successors and assigns . . . . . 319

n 2 General restriction on authorised activitiesRestriction if there is an existing geothermal, GHG or mining lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319

n 3 Pipeline construction and operationConstruction and operation of pipeline. . . . . . . . . . . . . . . . . . . . . 320Licence may extend transportation right to other prescribed substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321Availability of pipeline licencesLicence typesarea or point to point. . . . . . . . . . . . . . . . . . . . . . 322Pipeline licence can not be granted for distribution pipeline. . . . . 322Pipeline licence may be granted over any land . . . . . . . . . . . . . . 322Obtaining pipeline licence

n 1 Applying for pipeline licenceWho may apply and multiple licence applications . . . . . . . . . . . . 323Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 323Notice of application to relevant local government . . . . . . . . . . . . 324

n 2 Deciding pipeline licence applicationDeciding whether to grant licence . . . . . . . . . . . . . . . . . . . . . . . . 325Public notice requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326Provisions of licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326Provisions about grant and conditions of licence for coordinated project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328Restriction on imposing takeover condition . . . . . . . . . . . . . . . . . 328Provision for reduction of area of licence . . . . . . . . . . . . . . . . . . . 329Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 331

Contents


Division 4 Key mandatory conditions for pipeline licences417 Operation of div 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331418 419 419A 420 421

422 422A

423 424 Division 5

425 Division 6Subdivisio426 427

428 429 430 Subdivisio431 432 Division 7433 434 435 436 Division 8437 437A Page 21

Obligation to consult with particular owners and occupiers . . . . . 331Obligation to construct pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . 332Notice to chief inspector before construction starts . . . . . . . . . . . 332Notice of completion of pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . 333Notice to public road authority of pipeline constructed on public road . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334Obligations in operating pipeline . . . . . . . . . . . . . . . . . . . . . . . . . 334Obligation to hold relevant environmental authority and water licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334Annual licence fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335Civil penalty for nonpayment of annual licence fee . . . . . . . . . . . 335Amendment of point-to-point pipeline licences after pipeline completedPower to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335Provisions for public land authorities

n 1 Public roadsPublic road authoritys obligations in aligning pipeline on road . . 336Requirement to consult if construction affects existing pipeline or infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336Costs of pipeline works caused by public road construction . . . . 337Public road authoritys obligation to give holder information. . . . . 338Consequence of not giving information . . . . . . . . . . . . . . . . . . . . 338

n 2 Works directionsPower to give works directions . . . . . . . . . . . . . . . . . . . . . . . . . . . 338Compliance with works direction . . . . . . . . . . . . . . . . . . . . . . . . . 339Ministerial review of pipeline licence conditionsApplication of div 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340Power to review licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340Notice of proposed amendment . . . . . . . . . . . . . . . . . . . . . . . . . . 340Decision on proposed amendment. . . . . . . . . . . . . . . . . . . . . . . . 341Miscellaneous provisionsLimitation of transmission pipeline licence holders liability . . . . . 341Creation of easement by registration . . . . . . . . . . . . . . . . . . . . . . 342

Contents


Page 22

Part 3 Petroleum facility licencesDivision 1 Key authorised activitiesSubdivisio438 439 Subdivisio440 Subdivisio441 442 Division 2Subdivisio443 445 445A Subdivisio446 447 447A

448 448A 449 Division 3450 451 452 453 454 455 Part 4456 457 458 459

n 1 PreliminaryOperation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344What is petroleum facility land for a petroleum facility licence . . . 344

n 2 General restriction on authorised activitiesRestriction if there is an existing mining lease . . . . . . . . . . . . . . . 345

n 3 Petroleum facility construction and operationConstruction and operation of petroleum facility . . . . . . . . . . . . . 346Incidental activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346Obtaining petroleum facility licence

n 1 Applying for petroleum facility licenceWho may apply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 347Notice of application to relevant local government . . . . . . . . . . . . 349

n 2 Deciding petroleum facility licence applicationDeciding whether to grant licence . . . . . . . . . . . . . . . . . . . . . . . . 349Provisions of licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350Provisions about grant and conditions of licence for coordinated project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351Provision for facility already the subject of a pipeline licence. . . . 352Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 352Key mandatory conditions for petroleum facility licencesOperation of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353Obligation to consult with particular owners and occupiers . . . . . 353Obligation to construct facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . 354Obligation to operate facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354Annual licence fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354Civil penalty for nonpayment of annual licence fee . . . . . . . . . . . 354Taking land for pipelines and petroleum facilitiesStates power to take land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355Restrictions on power to take land . . . . . . . . . . . . . . . . . . . . . . . . 355Process for taking land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356Recovery of costs and compensation from holder or proposed holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357

Contents


460 Power to enter land proposed to be taken . . . . . . . . . . . . . . . . . . 357461 Requirements for entry to land proposed to be taken . . . . . . . . . 358462 Part 5

Division 1463 464 465 466 467 468 469 470 Division 2471 472 473 Part 6474 475 476 477 478 Part 7478A 479 480 481 482 483 484 485 486 Page 23

Disposal of land taken by State . . . . . . . . . . . . . . . . . . . . . . . . . . 359Permission to enter land to exercise rights under a pipeline or petroleum facility licenceApplying for and obtaining permissionApplying for permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 360Notice to owners about application . . . . . . . . . . . . . . . . . . . . . . . 360Change in ownership during consultation period . . . . . . . . . . . . . 361Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361Criteria for decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362Statement of proposed resumption may be included . . . . . . . . . . 362Steps after and taking effect of part 5 permission . . . . . . . . . . . . 363Effect and term of part 5 permissionEffect of part 5 permission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363Term of part 5 permission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364Power to cancel part 5 permission . . . . . . . . . . . . . . . . . . . . . . . . 364Amending licence by applicationAmendment applications that may be made . . . . . . . . . . . . . . . . 365Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 365Notice requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 366RenewalsSurvey licence can not be renewed . . . . . . . . . . . . . . . . . . . . . . . 367Conditions for renewal application for other types of licence . . . . 367Requirements for making application . . . . . . . . . . . . . . . . . . . . . . 367Continuing effect of licence for renewal application . . . . . . . . . . . 368Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 368Provisions and term of renewed licence. . . . . . . . . . . . . . . . . . . . 369Criteria for decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370Information notice about refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 370When refusal takes effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370

Contents


Page 24

Chapter 5 Common petroleum authority provisionsPart 1 Security487 488 489 490 491 492 493 494 Part 2Division 1

Subdivisio

495 496 497 498 499 Subdivisio

500 500A

500B Division 2Subdivisio501 Subdivisio502 503 504

505 506 507

Operation and purpose of pt 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . 371Power to require security for petroleum authority . . . . . . . . . . . . . 372Ministers power to require additional security . . . . . . . . . . . . . . . 372Interest on security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373Power to use security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373Replenishment of security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373Security not affected by change in authority holder . . . . . . . . . . . 374Retention of security after petroleum authority ends . . . . . . . . . . 374Private landRequirements for entry to private land in petroleum authority area

n 1 Entry notice requirement for preliminary activities and particular advanced activitiesEntry notice requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375Required contents of entry notice. . . . . . . . . . . . . . . . . . . . . . . . . 376Exemptions from entry notice requirement. . . . . . . . . . . . . . . . . . 378Provisions for waiver of entry notice. . . . . . . . . . . . . . . . . . . . . . . 378Giving entry notice by publication. . . . . . . . . . . . . . . . . . . . . . . . . 379

n 2 Conduct and compensation agreement requirement for particular advanced activitiesConduct and compensation agreement requirement . . . . . . . . . . 380Exemptions from conduct and compensation agreement requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380Requirements for deferral agreement. . . . . . . . . . . . . . . . . . . . . . 381Access to private land outside area of petroleum authority


n 2 Access rights and access agreementsAccess rights of petroleum authority holder . . . . . . . . . . . . . . . . . 382Restriction on exercise of access rights . . . . . . . . . . . . . . . . . . . . 383Owner or occupier must not unreasonably refuse to make access agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384Principles for deciding whether access is reasonable . . . . . . . . . 384Provisions for access and access agreements . . . . . . . . . . . . . . 385Access agreement binds successors and assigns. . . . . . . . . . . . 386

Contents


Subdivision 3 Land Court resolution508 Power of Land Court to decide access agreement. . . . . . . . . . . . 386509 510 Division 3

511

512 Division 4513 Division 5

513A

Part 3Division 1Subdivisio514 515 Subdivisio516 517 518 Division 2526 526A 526B 527 Part 4528 529 530 Part 5Division 1Subdivisio531 Page 25

Power of Land Court to vary access agreement . . . . . . . . . . . . . 386Criteria for deciding access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387Provisions for dealings or change in ownership or occupancyEntry notice or waiver of entry notice or access agreement not affected by dealing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387Change in ownership or occupancy . . . . . . . . . . . . . . . . . . . . . . . 387Periodic notice after entry of landNotice to owners and occupiers . . . . . . . . . . . . . . . . . . . . . . . . . . 388Access to carry out rehabilitation and environmental managementRight of access for authorised activities includes access for rehabilitation and environmental management. . . . . . . . . . . . . . . 389Public landPublic roads

n 1 PreliminaryCoordinated projects excluded from div 1 . . . . . . . . . . . . . . . . . . 390What is a notifiable road use . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390

n 2 Notifiable road usesNotice of notifiable road use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391Directions about notifiable road use . . . . . . . . . . . . . . . . . . . . . . . 392Obligation to comply with road use directions . . . . . . . . . . . . . . . 393Other public landRequirement for entry notice to carry out authorised activities . . 393Waiver of entry notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394Required contents of entry notice. . . . . . . . . . . . . . . . . . . . . . . . . 394Conditions public land authority may impose . . . . . . . . . . . . . . . . 395Access to land in area of particular other authoritiesApplication of pt 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 396Access if second authority is a lease . . . . . . . . . . . . . . . . . . . . . . 397Access if second authority is not a lease . . . . . . . . . . . . . . . . . . . 397Compensation and negotiated accessCompensation other than for notifiable road uses


Contents


Page 26

Subdivision 2 General provisions532 General liability to compensate . . . . . . . . . . . . . . . . . . . . . . . . . . 398Subdivisio

533 534 Subdivisio535 536 536A 537 537A 537AB Subdivisio537B 537C 537D Subdivisio

537DA 537DB 537DC Subdivisio537E

Division 2537F 537G 537H 537I 537J 537K

537L

n 3 General provisions for conduct and compensation agreementsConduct and compensation agreement . . . . . . . . . . . . . . . . . . . . 399Content of conduct and compensation agreement. . . . . . . . . . . . 400

n 4 Negotiation processNotice of intent to negotiate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402Provision for the minimum negotiation period . . . . . . . . . . . . . . . 403Cooling-off during minimum negotiation period . . . . . . . . . . . . . . 403Parties may seek conference or independent ADR . . . . . . . . . . . 404Conduct of conference or ADR. . . . . . . . . . . . . . . . . . . . . . . . . . . 404

n 5 Deciding compensation through Land CourtLand court may decide if negotiation process unsuccessful . . . . 405Land Court review of compensation. . . . . . . . . . . . . . . . . . . . . . . 406Orders Land Court may make . . . . . . . . . . . . . . . . . . . . . . . . . . . 407

n 6 Additional Land Court jurisdiction for compensation and related mattersWhat sdiv 6 is about . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407Additional jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408Jurisdiction to impose or vary conditions . . . . . . . . . . . . . . . . . . . 408

n 7 Miscellaneous provisionCompensation not affected by change in ownership or occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409Compensation for notifiable road usesLiability to compensate public road authority . . . . . . . . . . . . . . . . 410Compensation agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410Deciding compensation through Land Court . . . . . . . . . . . . . . . . 411Criteria for decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412Land Court review of compensation. . . . . . . . . . . . . . . . . . . . . . . 413Compensation to be addressed before carrying out notifiable road use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414Compensation not affected by change in administration or holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414

Contents


Part 6 Ownership of pipelines, equipment and improvementsDivision 1 Pipelines538 539

540 Division 2541 542 Part 7Division 1Subdivisio543

544

545 546 546A

Subdivisio547 548 Subdivisio549 550 551 Division 2552

552A 552B

553

553A 553B Page 27

Application of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415General provision about ownership while tenure or licence is in force for pipeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415Ownership afterwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416Equipment and improvementsApplication of div 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416Ownership of equipment and improvements . . . . . . . . . . . . . . . . 417ReportingReporting provisions for petroleum tenures

n 1 General provisionsRequirement of petroleum tenure holder to report outcome of testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 418Notice by petroleum tenure holder about discovery and commercial viability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419Relinquishment report by tenure holder . . . . . . . . . . . . . . . . . . . . 420End of tenure report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420End of authority report for data acquisition authority or survey licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421

n 2 Records and samplesRequirement to keep records and samples . . . . . . . . . . . . . . . . . 421Requirement to lodge records and samples. . . . . . . . . . . . . . . . . 422

n 3 Releasing required informationMeaning of required information. . . . . . . . . . . . . . . . . . . . . . . . . . 424Public release of required information . . . . . . . . . . . . . . . . . . . . . 424Chief executive may use required information . . . . . . . . . . . . . . . 425Other reporting provisionsObligation to lodge annual reports for pipeline or petroleum facility licence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 425Obligation to lodge infrastructure report for petroleum lease . . . . 426Content requirements for infrastructure report for petroleum lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426Power to require information or reports about authorised activities to be kept or given . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 426Giving copy of required notice by publication . . . . . . . . . . . . . . . . 428Copy of particular notices for chief executive (environment) . . . . 429

Contents


Page 28

Part 8 General provisions for conditions and authorised activitiesDivision 1 Other mandatory conditions for all petroleum authorities554 555 557 558 Division 2559 560 561

Division 3562 563

563A

Part 9564 565 566 566A

566B 567 Part 10Division 1568 569 570 571 Division 2572 573 573A Division 3573B

Operation of div 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429Compliance with land access code . . . . . . . . . . . . . . . . . . . . . . . 430Obligation to comply with Act and prescribed standards . . . . . . . 430Obligation to survey if Minister requires . . . . . . . . . . . . . . . . . . . . 431Provisions for when authority ends or area reducedObligation to decommission pipelines . . . . . . . . . . . . . . . . . . . . . 431Obligation to remove equipment and improvements . . . . . . . . . . 432Authorisation to enter to facilitate compliance with s 555 or this division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433Provisions for authorised activitiesGeneral restriction on carrying out authorised activities . . . . . . . 434Who may carry out authorised activity for petroleum authority holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435Limitation of owners or occupiers tortious liability for authorised activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435Petroleum registerPetroleum register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436Keeping of register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437Access to register. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437Arrangements with other departments for copies from petroleum register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438Supply of statistical data from petroleum register . . . . . . . . . . . . 438Chief executive may correct register . . . . . . . . . . . . . . . . . . . . . . 439DealingsPreliminaryDefinitions for pt 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440What is a dealing with a petroleum authority . . . . . . . . . . . . . . . . 440Prohibited dealings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441Types of transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442Registration of dealings generallyRegistration required for all dealings . . . . . . . . . . . . . . . . . . . . . . 443Obtaining registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443Effect of approval and registration . . . . . . . . . . . . . . . . . . . . . . . . 443Approval of assessable transfersIndicative approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444

Contents


573C Applying for approval of assessable transfer . . . . . . . . . . . . . . . . 444573D Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445573E 573F Part 10A573G 573H 573I Part 10B573J 573K 573L 573M 573N 573O 573P Part 11574A 575

576 577 578 579 Part 12

580 581 582 583 584 585 586

Part 13587 Page 29

Security may be required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447Notice of decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447Recording associated agreementsDefinition for pt 10A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 447Recording associated agreements. . . . . . . . . . . . . . . . . . . . . . . . 448Effect of recording associated agreements . . . . . . . . . . . . . . . . . 448CaveatsRequirements of caveats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449Lodging of caveat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 449Chief executives functions on receipt of caveat . . . . . . . . . . . . . . 450Effect of lodging caveat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450Lapsing, withdrawal or removal of caveat. . . . . . . . . . . . . . . . . . . 451Further caveat not available to same person . . . . . . . . . . . . . . . . 452Compensation for lodging caveat without reasonable cause 453SurrendersAuthority to prospect can not be surrendered . . . . . . . . . . . . . . . 453Requirements for surrendering another type of petroleum authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453Requirements for making surrender application. . . . . . . . . . . . . . 454Notice of application required for particular pipeline licences . . . 454Deciding application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455Notice and taking effect of decision . . . . . . . . . . . . . . . . . . . . . . . 455Enforcement of end of authority and area reduction obligationsPower of authorised person to ensure compliance . . . . . . . . . . . 456Requirements for entry to ensure compliance . . . . . . . . . . . . . . . 457Duty to avoid damage in exercising remedial powers. . . . . . . . . . 458Notice of damage because of exercise of remedial powers . . . . . 458Compensation for exercise of remedial powers . . . . . . . . . . . . . . 458Ownership of thing removed in exercise of remedial powers . . . . 459Recovery of costs of and compensation for exercise of remedial power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 459Miscellaneous provisionsMinisters power to ensure compliance by petroleum authority holder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 460

Contents


Page 30

588 Interest on amounts owing to the State other than for petroleum royalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461

589 Recovery of unpaid amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462Chapter 6Part 1590 591 591A 592

Part 2593 594 595 596 597 598 599 599A Part 3600 601 602 602A 603 604 604A Part 4Division 1605 606 607 608 609 610 611

Petroleum royaltyImposition of petroleum royaltyImposition of petroleum royalty on petroleum producers . . . . . . . 462General exemptions from petroleum royalty . . . . . . . . . . . . . . . . . 463Exemption for production testing . . . . . . . . . . . . . . . . . . . . . . . . . 464Minister may decide measurement if not made or royalty information not given . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465Royalty returnsApplication of pt 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466Obligation to lodge royalty return . . . . . . . . . . . . . . . . . . . . . . . . . 466Fee for late lodgement of royalty return . . . . . . . . . . . . . . . . . . . . 467Approval to use estimates for royalty return . . . . . . . . . . . . . . . . . 467Petroleum producers obligations if use of estimates approved . . 468Obligation to disclose inaccurate information . . . . . . . . . . . . . . . . 468Annual royalty returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469Minister may require royalty estimate . . . . . . . . . . . . . . . . . . . . . . 470Payment of petroleum royaltyOverpayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471Underpayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471Unpaid royalty interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 472Application of payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473Recovery of unpaid amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473Certificate of unpaid petroleum royalty . . . . . . . . . . . . . . . . . . . . . 473Regulation may impose civil penalties . . . . . . . . . . . . . . . . . . . . . 474Monitoring payment of petroleum royaltyAudits by approved auditorsAppointment and qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . 475Appointment conditions and limit on powers . . . . . . . . . . . . . . . . 476Issue of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 476Production or display of identity card . . . . . . . . . . . . . . . . . . . . . . 477When approved auditor ceases to hold office . . . . . . . . . . . . . . . 477Revocation of approved auditors appointment. . . . . . . . . . . . . . . 478Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478

Contents


612 Return of identity card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 478613 Approved auditors power to audit . . . . . . . . . . . . . . . . . . . . . . . . 478614 Division 2615 616 617 Part 5617A 617B 617C

617D Chapter 7Part 1618 619 Part 2Division 1620 621 Division 2622 623 624 625 Part 3626 627 628 Chapter 8Part 1Division 1629 Division 2631 Page 31

Application of ch 10, pt 1, divs 24. . . . . . . . . . . . . . . . . . . . . . . . 478Audits by auditor-generalAuditor-generals power to audit . . . . . . . . . . . . . . . . . . . . . . . . . . 479Powers in carrying out audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479Report on audit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480Disclosure and confidentialityDefinitions for pt 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480Disclosure of confidential information. . . . . . . . . . . . . . . . . . . . . . 480Other obligations about disclosure and use of confidential information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482Refusal of disclosure of particular information . . . . . . . . . . . . . . . 483Fuel gas quality and characteristics for consumersPreliminaryApplication of ch 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484Who is a consumer of fuel gas . . . . . . . . . . . . . . . . . . . . . . . . . . . 484QualityQuality restrictionsPrescribed quality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484Restrictions on supplying gas not of prescribed quality . . . . . . . . 485Gas quality approvalsChief inspectors power to approve quality . . . . . . . . . . . . . . . . . . 486Criteria for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486Steps after making decision about approval. . . . . . . . . . . . . . . . . 487Power to cancel approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487CharacteristicsFuel gas supplied through pipeline. . . . . . . . . . . . . . . . . . . . . . . . 488Prescribed odour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489Odour requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489Petroleum and fuel gas measurementIntroductionApplication of chapter 8Application of ch 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490InterpretationWhat is a meter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490

Contents


Page 32

632 Who is the controller of a meter . . . . . . . . . . . . . . . . . . . . . . . . . . 491633 What is the measurement scheme for a met

PetrolmGasA04

Documents

Transcript of PetrolmGasA04