Petroleum Division
www.dmp.wa.gov.au
WA PETROLEUM GUIDELINE – CRITERIA FOR ASSESSMENT
© AWE Ltd
© Empire Oil & Gas
DMPMAR17_4700
Petroleum Division
www.dmp.wa.gov.au
A guideline in relation to the Petroleum and Geothermal Energy Resources Act 1967 (PGERA67) and the Petroleum (Submerged Lands) Act 1982 (PSLA82). Informing the assessment of:
• applicationsfortheawardofpetroleumexplorationpermits,undersection31ofthePGERA67andsection21ofthePSLA82
• applicationsfortheawardofpetroleumdrillingreservations,undersection43BofthePGERA67
• transferapplicationstobecomearegisteredholderofapetroleumtitleinWesternAustralia,undersection72ofthePGERA67andsection78ofthePSLA82.
Bywayofbackground,section30andsection43AofthePGERA67andsection20ofthePSLA82providethelegislativemechanismsfortheMinistertoinviteapplicationsforthegrantofapetroleumexplorationpermitorpetroleumdrillingreservationbywayofacompetitiveapplicationprocess(bidding).Undersection105(3(a)(ii)ofthePGERA67,theMinistermayauthorisetheregisteredholderofaspecialprospectingauthoritytoapplyforthegrantofapetroleumexplorationpermitorpetroleumdrillingreservation,commonlycalledtheacreageoption.
Thisguideline,inrespectof:
• Petroleumexplorationpermits–clarifiestherequirementsundersection31(1)(d)ofthePGERA67andsection21(1)(d)ofthePSLA82.Thesesectionsprovidethatanapplicationforapetroleumexplorationpermitshallbeaccompaniedbyparticularsof:
(i) theproposalsoftheapplicantforworkandexpenditureinrespectoftheblocksspecifiedintheapplication
(ii) thetechnicalqualificationsoftheapplicantandofitsemployees
(iii) thetechnicaladviceavailabletotheapplicant
(iv) thefinancialresourcesavailabletotheapplicant.
• Petroleumdrillingreservation–clarifiestherequirementsundersection43B(1)(d)ofthePGERA67.Thissectionprovidesthatanapplicationforadrillingreservationshallbeaccompaniedby:
(i) theproposalsoftheapplicantforthedrillingofawell,orwells,andotherworkinrespectoftheblock,orblocks,specifiedintheapplication
(ii) thetechnicalqualificationsoftheapplicantandoftheemployeesoftheapplicant
(iii)thetechnicaladviceavailabletotheapplicant
(iv)astatementastothesizeandconfigurationofthepotentialpetroleumdepositasthecaserequiresandageologicalprognosisof the well
(v) astatementoftheapproximatetimeofthecompletionofthewell
(vi)thefinancialresourcesavailabletotheapplicant.
• HowtoApply–specifiestheapprovedmannerformakinganapplicationforthepurposesofsection31(1)(b)andsection43B(1)(b)ofthePGERA67andsection21(1)(b)ofthePSLA82.
• OverviewofCriteriaforAssessment–providesguidanceonothermattersthatanapplicantmayincludeinitsapplicationfortheMinister’sconsiderationinaccordancewithsection31(1)(e)andsection43B(1)(e)ofthePGERA67andsection21(1)(e)ofthePSLA82.Ifthesuggestedinformationisnotvolunteeredinanapplication,theMinistermayrequestthisinformationbeprovided,undersection31(4)andsection43B(4)ofthePGERA67andsection21(4)ofPSLA82.Theinformationprovidedmaythenbeusedtoassistwiththeassessmentoftheapplication.
• Assessment–setsoutthemethodologywhichtheMinistermayregardwhenconsideringwhichofseveralcompetingapplicationsforthesameblock,orblocks(releasearea),isthemostdeservingofthegrantofapetroleumexplorationpermitforthepurposesofsection32A(2)ofthePERA67andsection22A(2)ofthePSLA82andforapetroleumdrillingreservationsundersection43CA(2)ofthePGERA67.
• ApprovalofTransfers–willbeofassistancetopartiesmakinganapplicationforapprovalofatransferoftitle,undersection72ofthePGERA67andsection78ofthePSLA82.Fortransferapplications,thedetailstobesubmittedarelimitedtotechnicalqualifications,technicaladviceandfinancialresourcesavailabletonewmarketentrants,inaccordancewithsection72(3)(b)ofthePGERA67andsection78(3)(b)ofthePSLA82.
PAGE2of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
ThisguidelinehasbeenmadeandapprovedbytheExecutiveDirector,Petroleum,DepartmentofMinesandPetroleum,underdelegation from the Minister for Mines and Petroleum.
Notes:
• Unlessotherwisedefined,termsusedinthisguidelineareconsistentwiththosedefinedinthePGERA67andPSLA82.
• ThisguidelinedoesnotprovidefortheassessmentofapplicationsfortheawardofgeothermalexplorationpermitsorgeothermaldrillingreservationsunderthePGERA67.
• Areferencetothe‘Minister’meanstheMinisterforMinesandPetroleumortheExecutiveDirector,Petroleumasthe Minister’s Delegate.
• InformationrequiredtobesubmittedtotheMinisteristobeaddressedtotheExecutiveDirector,PetroleumattheDepartmentofMines and Petroleum as the Minister’s Delegate.
• Areferencetoreleaseareameansaninvitationforapplications,inrespecttotheblock,orblocks,publishedbyinstrumentintheGovernmentGazetteundersection30andsection43AofthePGERA67andsection20ofthePSLA82.
• Areferencetopermitteemeanstheregisteredholderofapetroleumexplorationpermit.
• Areferencetoaholdermeanstheregisteredholderofapetroleumdrillingreservation.
• Areferencetoaregisteredholder,inthecontextofapprovaloftransfers,meanstheregisteredholderofanypetroleumtitleunderthePGERA67andPSLA82.
• Ayearofaworkprogramisreferredtoasa“permityear”.Thefirsttwopermityearsarecollectivelyreferredtoasthe“firmperiod”andrepresentaguaranteedminimumworkcommitmentbythepermittee.
• Thisguidelinewillbeupdatedasrequiredfromtimetotime.
• ItisatalltimestheresponsibilityoftheapplicanttoensurethatitcomplieswithandisfamiliarwiththerequirementsandobligationsofthePGERA67andthePSLA82andanysubsidiarylegislationmadeundertheseacts,inforcefromtimetotime.
The guideline should be read in conjunction with the following documents:
• WA Petroleum and Geothermal Guideline for Exploration Permit Management
• Western Australia’s Petroleum and Geothermal Explorer’s Guide.
PAGE3of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.auPAGE4of13 PD-PTLA-AR-106DRev10
CONTENTS
1. PETROLEUMEXPLORATIONPERMITS _______________________________________________________________ 5
2. PETROLEUMDRILLINGRESERVATIONS ______________________________________________________________ 5
3. HOWTOAPPLY________________________________________________________________________________ 6
4. OVERVIEWOFCRITERIAFORASSESSMENT ___________________________________________________________ 7
5. BASISFORASSESSMENT ________________________________________________________________________ 8
6. CRITERIAFORASSESSMENT–APPLICANTPROFILE _____________________________________________________ 8
7. CRITERIAFORASSESSMENT–GEOLOGICALEVALUATIONANDEXPLORATIONRATIONALE _________________________ 9
8. CRITERIAFORASSESSMENT–ENVIRONMENTALMANAGEMENT ___________________________________________ 10
9. CRITERIAFORASSESSMENT–NATIVETITLEANDHERITAGEMANAGEMENT ___________________________________ 11
10. CRITERIAFORASSESSMENT–LANDACCESSMANAGEMENT ______________________________________________ 11
11. APPROVALOFTRANSFERS _______________________________________________________________________ 12
12. RE-RELEASEOFACREAGE _______________________________________________________________________ 12
13. MOSTDESERVINGAPPLICANT ____________________________________________________________________ 13
14. ASSESSMENT ________________________________________________________________________________ 13
www.dmp.wa.gov.au
Petroleum Division 1. PETROLEUM EXPLORATION PERMITS
1.1. WesternAustralianpetroleumexplorationpermitsaregrantedinaccordancewiththeprovisionsofthePGERA67inrespectoflandandwaterextendingtothebaselinefromwhichAustralia’sterritorialseaismeasured,andthePSLA82inrespectofWesternAustralia’scoastalwaters(threenauticalmilesseawardofthebaseline).
1.2. Petroleumexplorationpermitsauthorisethepermitteetoexploreforpetroleum,andtocarryonsuchoperationsandexecutesuchworksasarenecessaryforthatpurpose,inthepermitareaandforthetermofthepermit.
1.2.1. Permitsaregrantedforaninitialperiodofsixyearsandaresubjecttoconditionsrequiringworktobecarriedoutbythepermitteeinaccordancewithaworkprogram,andsubjecttoanapplicationand approvalprocess.
1.2.2. Eachyearofaworkprogramisreferredtoasa“permityear”.Thefirsttwopermityearsarecollectivelyreferredtoasthe“firmperiod”andrepresentaguaranteedminimumworkcommitmentbythepermittee.
1.3. Inundertakingpetroleumoperations,thepermitteemustcomplywiththeprovisionsofanyotherapplicablelegislationandallotherrelevantlaws.Workmustbecarriedoutwithdueregardtopublicandworkersafety,protectionoftheenvironmentandtheinterestsofotherswhoalsohaveaninterestinthelands.
1.3.1. Attimes,competingandconflictinginterestsmayoccuranditisthepermittee’sresponsibilitytoconductitsoperationsinamannerthatdoesnotprejudiceitsfutureinterestandthatofothers.
2. PETROLEUM DRILLING RESERVATIONS
2.1. ApetroleumdrillingreservationgrantedunderPGERA67isatitlepredominantlyforthepurposeofdrillingaprospectivetarget.
2.2. Apetroleumdrillingreservationtitlealsoauthorisestheholdertoundertakeotherexplorationworkinsupport of drilling.
2.3. Petroleumdrillingreservationsaregranted,subjecttoconditions,foraperiodofuptoamaximumofthreeyears (atthediscretionoftheMinister).
2.4. Undersection43AofthePGERA67,releaseareasforpetroleumdrillingreservationsmaybeadvertised,assessedandrankedinthesamecompetitivewayasreleaseareasforpetroleumexplorationpermits.
2.5. Theblock,orblocks,subjectofanapplicationmadeundersection43Bmustcontaindetailsofthepotentialpetroleumdepositsandidentifythelocationofadrillabletarget.
2.6. PetroleumdrillingreservationsarenotavailableunderthePSLA82.
2.7. Forconsistency,theoverviewatclause4ofthisguidelinemaybeofassistanceinthepreparationofapplicationsforpetroleumdrillingreservationsmadeundersection43B(1)(d)(i-vi),includingothermattersthattheapplicantwishestheMinistertoconsiderundersection43B(1)(e).
2.8. Ifothermatters,describedinClause4,arenotincludedinanapplicationforapetroleumdrillingreservation,theMinistermayrequestthisinformationbeprovidedundersection43B(4)ofthePGERA67.
2.9. Petroleumdrillingreservationapplicationsshouldgiveearlyconsiderationtothecontentsofawellmanagementplan,whichisapostgrantrequirement,underPart3andSchedule1ofthePetroleumandGeothermalEnergyResources(ResourceManagementandAdministration)Regulations2015.
2.10. Inundertakingpetroleumoperations,theholderofapetroleumdrillingreservationmustcomplywiththeprovisionsofanyotherapplicablelegislationandallotherrelevantlaws.Workmustbecarriedoutwithdueregardtopublicandworkersafety,protectionoftheenvironmentandtheinterestsofotherswhoalsohaveaninterestinthelands.
2.10.1. Attimes,competingandconflictinginterestsmayoccuranditistheholder’sresponsibilitytoconductitsoperationsinamannerthatdoesnotprejudiceitsfutureinterestandthatofothers.
PAGE5of13 PD-PTLA-AR-106DRev10
www.dmp.wa.gov.au
Petroleum Division 3. HOW TO APPLY
Forthepurposeofsection31(1)(b)andsection43B(1)(b)ofthePGERA67andsection21(1)(b)ofthePSLA82–fromaninvitationtoapply,forapetroleumexplorationpermitorpetroleumdrillingreservation,fromanacreagerelease–
3.1. Theapprovedmannerforlodgementofanapplicationisthroughthedepartment’ssecureonlinePetroleumandGeothermalRegister(PGR)bytheclosingdateandtimestipulatedintheGovernmentGazettenoticeinvitingapplicationsforthegrantofapetroleumexplorationpermitorpetroleumdrillingreservation,andpaymentoftheprescribedapplicationfee.
3.1.1. Applicationswillnolongerbeacceptedbyhanddeliveryorpost.
3.1.2. ApplicantsareadvisedtoregisterforaccesstoPGRatleasttwobusinessdaysinadvanceoftheclosingdate and time.
3.1.3. LodgementofapplicationsusingPGRwillbeavailablefromthedateoftheGovernmentGazettenoticeinvitingapplications.ApplicantsshouldnotethatPGRwillpreventlodgementofapplicationsafterthe closingdateandtime.
3.1.4. PaymentoftheprescribedapplicationfeemustbemadethroughPGRfortheapplicationtobe consideredlodged.
Forthepurposeofsection31(1)(b)andsection43B(1)(b)ofthePGERA67,whenexercisingtheacreageoptionofaspecialprospectingauthority,forapetroleumexplorationpermitorpetroleumdrillingreservation–
3.2. TheapprovedmannerforlodgementofanapplicationisviatheDepartment’ssecureonlinePetroleumandGeothermalRegister(“PGR”)bythedatespecifiedinthespecialprospectingauthorityinstrumentofgrant,andpaymentoftheprescribedapplicationfee.
3.2.1. Applicationswillnolongerbeacceptedbyhanddeliveryorpost.
3.2.2. ApplicantsareadvisedtoregisterforaccesstoPGRatleasttwobusinessdaysinadvanceofthedatespecifiedinthespecialprospectingauthorityinstrumentofgrant.
3.2.3. PaymentoftheprescribedfeemustbemadeviaPGRfortheapplicationtobeconsideredlodged.
3.3. Forthepurposesofsection72(3)(a)ofthePGERA67andsection78(3)(a)ofthePSLA82thelodgementofanapplicationfortransferofatitleisviathedepartment’ssecureonlinePGR,includingthelodgementoftheapplicationandtheprescribedformofinstrumentoftransfer.
PAGE6of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
4.
OVER
VIEW
OF
CRIT
ERIA
FOR
ASS
ESSM
ENT
An a
pplic
atio
n sh
all b
e ac
com
pani
ed b
y pa
rticu
lars
of t
he p
ropo
sals
of t
he a
pplic
ant f
or w
ork
and
expe
nditu
re, t
he te
chni
cal a
nd fi
nanc
ial r
esou
rces
ava
ilabl
e to
the
appl
ican
t, an
d m
ay s
et o
ut
any
othe
r mat
ters
for c
onsi
dera
tion
by th
e M
inis
ter.
To m
eet t
he re
quire
men
ts o
f:Th
e ap
plic
ant s
houl
d pr
ovid
e:
Appl
ican
t Pro
file
Geol
ogic
al E
valu
atio
n an
d Ex
plor
atio
n Ra
tiona
leEn
viro
nmen
tal M
anag
emen
tNa
tive
Title
and
Her
itage
M
anag
emen
tLa
nd A
cces
s M
anag
emen
t
Who
is th
e ap
plica
nt?
Wha
t min
imum
wor
k –
com
men
sura
te
with
the
size
of th
e re
leas
e ar
ea –
doe
s th
e ap
plica
nt p
ropo
se to
und
erta
ke fo
r the
wor
k pr
ogra
m o
f a s
ix ye
ar p
erm
it, o
r wel
l/s a
nd/
or w
ork
for a
dril
ling
rese
rvat
ion?
How
doe
s th
e ap
plica
nt in
tend
to m
anag
e en
viron
men
tal r
isks
and
impa
cts
in
resp
ect o
f com
mitm
ents
in th
e fir
m
perio
d of
the
prop
osed
wor
k pr
ogra
m fo
r a
perm
it, o
r in
the
time
spec
ified
for t
he
drilli
ng a
pplic
atio
n?
How
will
the
appl
icant
fulfi
l the
futu
re a
ct
prov
ision
s of
the
Com
mon
wea
lth N
ative
Ti
tle A
ct 1
993
prio
r to
the
gran
t of a
per
mit
or d
rillin
g re
serv
atio
n?
How
doe
s th
e ap
plica
nt in
tend
to m
anag
e la
nd a
cces
s to
ens
ure
that
it s
ecur
es a
nd
mai
ntai
ns th
e rig
ht to
acc
ess
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area
the
subj
ect o
f a p
erm
it or
dril
ling
rese
rvat
ion?
sect
ion
31(1
)(e)o
fthe
PGE
RA67
sect
ion
43B(
1)(e
)oft
heP
GERA
67
sect
ion
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)(e)o
fthe
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A82
…se
t out
oth
er m
atte
rs fo
r con
sider
atio
n
Deta
ilso
fthe
app
lican
tand
its
rela
tions
hip
toa
nym
ajor
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pora
tion
org
roup
,su
bsta
ntia
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ldin
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irect
ors,
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ines
sac
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ce
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ess
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sing
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requ
irem
ents
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stra
tion
ofa
nAu
stra
lian
entit
y,
whe
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pplic
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).
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cula
rso
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lican
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olve
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tin
petro
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and
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stra
lia.
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lican
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rman
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spec
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nce
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mitm
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min
Aus
tralia
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ilso
fany
pot
entia
lbar
riers
that
may
im
pact
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unde
rtaki
ngo
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pro
pose
dw
ork
prog
ram
.
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con
sider
atio
nto
the
cont
ents
ofa
wel
lm
anag
emen
t pla
n fo
r a d
rillin
g re
serv
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ilso
fthe
app
lican
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astp
erfo
rman
ce
inre
spec
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mat
ters
ofa
sses
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tand
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mpl
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eag
ains
trel
evan
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tea
nd
Com
mon
wea
lthe
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tall
egisl
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n.
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ilso
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app
lican
t’sp
astp
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rman
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spec
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wor
king
with
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rigin
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mun
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inre
spec
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ralm
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porta
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des
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onst
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plem
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ite
iden
tifica
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and,
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ite
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danc
est
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form
anag
emen
tof
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igin
alh
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ge.A
ltern
ative
ly,p
revio
us
evid
ence
from
the
Min
ister
forA
borig
inal
Af
fairs
forc
onse
ntto
use
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rigin
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Herit
age
land
.
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ilso
fthe
app
lican
t’sp
astp
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rman
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inn
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acc
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agre
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ts.
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ndar
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ract
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atw
illbe
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tiatio
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ulta
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and
eng
agem
ent.
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ilso
fany
pot
entia
lbar
riers
that
may
im
pact
the
unde
rtaki
ngo
fthe
pro
pose
dw
ork
prog
ram
.
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ilso
fpre
-gra
nts
take
hold
er
iden
tifica
tion
and
ane
ngag
emen
tstra
tegy
in
rela
tion
toth
ew
ork
prog
ram
.
sect
ion
31(1
)(d)(i
)oft
heP
GERA
67
sect
ion
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1)(d
)(i),(
iv)a
nd(v
)oft
heP
GERA
67
sect
ion
21(1
)(d)(i
)oft
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…pr
opos
als
for w
ork
and
expe
nditu
re
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ilso
fthe
exp
lora
tion
ratio
nale
gui
ding
a
sixy
earp
ropo
sed
wor
kpr
ogra
min
cludi
ng
logi
stics
requ
ired
tos
ucce
ssfu
llyu
nder
take
th
epr
opos
edw
ork.
Prop
osal
forw
ell/s
and
/orw
ork
fora
dril
ling
rese
rvat
ion
inclu
ding
as
tate
men
tas
to
the
size
and
confi
gura
tion
ofp
etro
leum
pr
ospe
cta
nda
geo
logi
calp
rogn
osis.
sect
ions
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1)(d
)(ii-i
ii)o
fthe
PGE
RA67
sect
ion
43B(
1)(d
)(i),(
iv)a
nd(v
)oft
heP
GERA
67
sect
ion
72(3
)(b)(i
)and
(ii)
ofth
ePG
ERA6
7
sect
ions
21(
1)(d
)(ii-i
ii)o
fthe
PSL
A82
sect
ion
78(3
)(b)(i
)and
(ii)
ofth
ePS
LA82
…te
chni
cal r
esou
rces
ava
ilabl
e
Deta
ilso
fthe
tech
nica
lqua
lifica
tions
of
,and
tech
nica
ladv
icea
vaila
ble
to,
the
appl
icant
.
Deta
ilso
fthe
exp
ertis
eav
aila
ble
toth
eap
plica
ntto
und
erta
keth
eco
mm
itmen
ts
inth
efir
mp
erio
dof
the
prop
osed
wor
kpr
ogra
mfo
rap
erm
it,o
rtim
esp
ecifi
edin
a
drilli
ngre
serv
atio
nap
plica
tion.
Deta
ilso
fthe
exp
ertis
eav
aila
ble
toth
eap
plica
ntto
iden
tify,
unde
rsta
nd,a
nd
man
age
the
envir
onm
ent(
inclu
ding
se
nsiti
vea
reas
and
asp
ects
)for
the
purp
ose
ofth
eco
mm
itmen
tsin
the
firm
pe
riod
ofth
epr
opos
edw
ork
prog
ram
, or
tim
esp
ecifi
edin
ad
rillin
g
rese
rvat
ion
appl
icatio
n.
Deta
ilso
fthe
exp
ertis
eav
aila
ble
toth
eap
plica
ntto
man
age
nativ
etit
lea
nd
Abor
igin
alh
erita
gep
roce
edin
gsp
riort
oth
egr
ant o
f a p
erm
it or
dril
ling
rese
rvat
ion.
Deta
ilso
fthe
exp
ertis
eav
aila
ble
to
the
appl
icant
tom
anag
est
akeh
olde
ren
gage
men
t prio
r to
the
gran
t of a
per
mit
and
fort
hefi
rmp
erio
dof
the
prop
osed
w
ork
prog
ram
,ort
ime
spec
ified
ina
dril
ling
rese
rvat
ion
appl
icatio
n.
sect
ion
31(1
)(d)(i
v)o
fthe
PGE
RA67
sect
ion
43B(
1)(d
)(vi)
ofth
ePG
ERA6
7
sect
ion
72(3
)(b)(i
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fthe
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PAGE7of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
5. BASIS FOR ASSESSMENT
5.1. ApplicationsareassessedbyapanelofdepartmentalstaffonthebasisoftheinformationsubmittedintheapplicationtogetherwithanyadditionalinformationrequestedbytheMinister.
5.2. ThebasisforassessmentforeachcriterionisthattheMinistermustbereasonablysatisfiedthattheapplicanthasadequatelyaddressedthecriteriawithconsiderationtotherequirementsofthisguideline.
5.2.1. TheMinisterwillnotconsiderapplicationsthatfailtoaddress,ataminimum,therequirementsinrespecttosection31(1)(d)(i-iv)andsection43B(d)(i-vi)ofthePGERA67andsections21(1)(d)(i-iv)ofthePSLA82(proposalsforworkandexpenditure,technicalresourcesandadviceavailableandfinancialresourcesavailable).
5.2.2. Wheremorethanoneapplicationisreceivedforapetroleumexplorationpermitreleaseareaorpetroleumdrillingreservationreleasearea,theMinistermayofferthegranttowhicheverapplicant,inhisopinion,isthemostdeserving(seeClause14–Assessment).
5.2.3. Informationprovidedundersection31(1)(e)and43B(1)(e)ofthePGERA67andsection21(1)(e)ofthePSLA82maybeutilisedtoidentifythemostdeservingapplicant.
5.2.4. Fortheavoidanceofdoubt,theMinisterwillrefuseanapplicationwhereheconsiderstheapplicantisnotdeservingofthegrantofapetroleumexplorationpermitorpetroleumdrillingreservation,havingregardtothecriteriainthisguideline.
5.3. Inaccordancewithsection314)andsection43B(4)ofthePGERA67andsection21(4)ofthePSLA82,theMinistermayatanytimerequestfurtherinformationinconnectionwithanapplication.
5.3.1. Applicantsmaybeinvitedtoattendaninterviewwiththepaneltoclarifyinformationsubmitted.
5.3.2. Itshouldbenotedthatthecompositionandtimingoftheproposedworkprogrammaybeclarifiedbutcannotbeamendedbytheprovisionofadditionalinformationorthroughtheinterviewprocess.
5.3.3. AnapplicantfortheawardofapetroleumexplorationpermitorpetroleumdrillingreservationmayberequiredtofurnishtheMinisterwithevidenceofitscontinuedsuitabilityinrespecttothecriteriaoutlinedinthisguideline,untilsuchtimeasthepetroleumexplorationpermitorpetroleumdrillingreservationmaybeofferedforgrant.
6. CRITERIA FOR ASSESSMENT – APPLICANT PROFILE
For the purpose of section 31(1)(d) and section 43B(1)(d)(ii) and(iii) of the PGERA67 and section 21(1)(d) of the PSLA82 –
6.1. Applicantsmustprovideanapplicantprofilewithparticularsof:
6.1.1. thetechnicalqualificationsoftheapplicantandofitsemployees
6.1.2. thetechnicaladvice/expertiseavailabletotheapplicant
6.1.3. thefinancialresourcesavailabletotheapplicant,includingevidenceoftheapplicant’sabilitytofundtheproposedworkprogram
6.1.4. whererelevant,thefutureviabilityoftheconsortiumlodgingtheapplication,includingevidencethatasatisfactorysettlementhasbeen,orcanbereachedonajointoperatingagreement
6.1.5. thepercentageparticipatinginterestofeachapplicant
6.1.6. asinglecontactinrespecttotheapplication.
6.2. Alltechnicalandfinancialinformationsuppliedintheapplicantprofilemustbeconsistentacrosseachofthe assessmentcriteria.
For the purpose of section 31(1)(e) and section 43B(1)(e) of the PGERA67 and section 21(1)(e) of the PSLA82 –
6.3. Applicantsmayincludethefollowingparticularsinitsapplicantprofile:
6.3.1. detailsoftheapplicantanditsrelationshiptoanymajorcorporationorgroup,substantialshareholding,directors,principalbusinessactivity,andplaceofincorporation/business
6.3.2. wheretheapplicantisaforeigncompany,itsacknowledgementoftherequirementsforapprovalbytheAustralianForeignInvestmentReviewBoard(FIRB),and/orproposalforregisteringanAustralianentity
6.3.3. theapplicant’scurrentandpriorinvolvementinpetroleumexplorationanddevelopmentinothernationalorinternationaljurisdictions,includingworkcommitmentsforotherpetroleumtenure
6.3.4. theapplicant’spastperformanceinrespectofmattersofcompliance(orfailuretocomply)underthePGERA67and/orPSLA82.
PAGE8of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
6.4. Whererelevant,itistheresponsibilityoftheapplicanttoprovidesufficientcompellingevidencetojustifywhythecircumstancesleadingtopoorpastperformancehavebeenmitigatedorresolvedsuchthatthechanceofreoccurrenceisaslowasreasonablypracticable.
7. CRITERIA FOR ASSESSMENT – GEOLOGICAL EVALUATION AND EXPLORATION RATIONALE
For the purpose of sections 31(1)(d)(ii-iii) of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –
7.1. Applicantsmustprovideageologicalevaluationandexplorationrationalelinkedtoasixyearproposedworkprogramcommensuratewiththesizeofthereleasearea,detailing:
7.1.1. theapplicant’sgeologicalevaluationofthereleasearea,includingpotentialpetroleumsystemsandplays
7.1.2. theapplicant’sassessmentofexistingdata,whererelevant.
7.1.3. therationaleunderlyingtheproposedworkprogramwithsufficientdetailtosupportthatprogram
7.1.4. howthecommitmentsintheproposedworkprogramwillinvestigatetheplays,prospects,and/orleadsidentifiedinthegeologicalevaluationofthereleasearea.
7.2. Applicantsmustdemonstratethattheproposedworkprogramwillsignificantlyprogresstheassessmentofthepetroleumpotentialand/ordevelopthegeologicalknowledgeofthereleasearea.
7.2.1. Theproposedworkprogrammustbecredible,coherentandsupportable,andmustnotcontainanycontingentwork.
7.2.2. Thefirmperiodcommitmentsaresufficienttoenablelaterworkprogramcommitments.
7.2.3. EachcommitmentexpressedintheproposedworkprogrammustbeaccompaniedbyanindicativecostexpressedinAustraliandollars.Thisisforassessmentpurposesonlyanddoesnotimplyanyobligationonthepartoftheapplicanttoexpendsuchamounts.
7.2.3.1.Applicantsshouldnotethattheindicativecostwillbetakenintoaccountintheassessmentoftheapplicant’sknowledgeofexplorationtechniques.
7.2.4. Onlyworkproposedtobeundertakenwithin,orinrespectto,theareathesubjectofapetroleumexplorationpermitwillbeconsideredaspartoftheworkprogram.
Theproposedworkprogramwillbeassessedhavingregardto:
7.2.5. thequantity,type,andtimingofanynewgeochemical,geological,and/orgeophysicalsurveyingtobeundertaken
7.2.6. thequantity,type,andtimingofgeochemical,geological,and/orgeophysicalsurveydatatobepurchasedorlicenced,and/orreprocessedorreinterpreted.
7.2.6.1.Itisexpectedthatpurchasedorlicencedreprocesseddatawillhavebeenreprocessedfromrawdata.
7.2.6.2.Pre-purchased,non-exclusivesurveydatacannotformpartoftheproposedworkprogram;but,anyinterpretationofthatdatawillbetakenintoaccountinassessingtherelativemeritsoftheproposed workprogram.
7.2.6.3.Non-exclusivesurveydataproposedtobepurchasedaftertheawardofapetroleumexplorationpermitmayformpartoftheworkprogramprovidedthatthiswillnotdisadvantageotherapplicantswhohavepurchasedthedatapriortomakinganapplication.
7.2.7. thenumber,type(slim-hole,stratigraphic,open-hole,cased,etc.),andtimingofexplorationwellstobedrilled,providedthereisacoherentrationale
7.2.8. workintendedtoappraiseaknownpetroleumresourcecannotformpartoftheproposedworkprogramunlessitcanbedemonstratedtohaveasignificantexplorationcomponent
7.2.9. proposedworkconsideredequivalentorinferiortoworkpreviouslycarriedoutwillnotbeconsideredexplorationworkforthepurposeofprogressingtheassessmentofthepetroleumpotentialofthereleasearea.
For the purpose of sections 31(1)(d)(ii-iii) of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –
7.3. Applicantsmustprovidedetailsofitstechnicalexpertiseavailable(throughemployees/consultants/contractors)tobeusedtoensuretheminimumcommitmentsinthefirmperiod(only)oftheproposedworkprogrammaybesuccessfullyundertaken.
For the purpose of section 31(1)(d)(iv) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –
7.4. Applicantsmustprovideevidenceasassuranceofitsfinancialcapacitytoundertakethecommitmentsinthefirm period(only)oftheproposedworkprogram,includingexperienceraisingcapitaltosuccessfullyundertakeexploration(whererelevant).
PAGE9of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
For the purpose of section 31(1)(e) of the PGERA67 and section 21(1)(e) of the PSLA82 –
7.5. Applicantsmayincludeinitsrationaledetailsofanypotentialbarriersthatmayimpacttheproposedworkprogramandhowsuchbarrierscouldbeovercome;e.g.landuse,infrastructureorseasonalrestrictions.
For the purpose of section 43B(1)(d)(i),(iv) and (v) of the PGERA67 –
7.6. Applicantsmustprovideageologicalevaluationandexplorationrationalelinkedtotheproposedworkprogramcommensuratewiththesizeoftheapplicationarea,detailing:
7.6.1. theapplicant’sgeologicalevaluationofthereleasearea,includingpotentialpetroleumsystemsandplays
7.6.2. theapplicant’sassessmentofexistingdata,whererelevant
7.6.3. therationaleunderlyingtheproposedworkprogramwithsufficientdetailtosupportthatprogram
7.6.4. howtheproposedworkprogramwillinvestigatetheplays,prospectsand/orleadsidentifiedinthe geologicalevaluation
7.6.5. thesizeandconfigurationofthepetroleumdepositandgeologicalprognosis
7.6.6. thetype(slim-hole,stratigraphic,open-hole,cased,etc.)andapproximatetimingofthecompletionofthewell.
7.7. Eachwell,orotherworkcommitmentexpressedintheproposedworkprogrammustbeaccompaniedbyanindicativecostexpressedinAustraliandollars.Thisisforassessmentpurposesonlyanddoesnotimplyanyobligationonthepartoftheapplicanttoexpendsuchamounts.
7.7.1. Applicantsshouldnotethattheindicativecostwillbetakenintoaccountintheassessmentoftheapplicant’sknowledgeofexplorationtechniques.
For the purpose of section 43B(1)(d)(ii) and (iii) of the PGERA67 –
7.8. Applicantsmustprovidedetailsofitstechnicalexpertiseavailable(throughemployees/consultants/contractors)tobeutilisedtoensuretheproposedworkprogrammaybesuccessfullyundertaken.
For the purpose of section 43B(1)(d)(vi) of the PGERA67 –
7.9. Applicantsmustprovideevidenceasassuranceofitsfinancialcapacitytoundertaketheproposedworkprogram.
For the purpose of section 43B(1)(e) of the PGERA67 –
7.10. Applicantsmayincludeinitsrationaledetailsofanypotentialbarriersthatmayimpacttheproposedworkprogramandhowsuchbarrierscouldbeovercomesuchaslanduse,infrastructureorseasonalrestrictions.
8. CRITERIA FOR ASSESSMENT – ENVIRONMENTAL MANAGEMENT
For the purpose of sections 31(1)(d)(ii-iii) and section 43B(1)(d)(ii-iii) of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –
8.1. Applicantsmustprovidedetailsofitstechnicalexpertiseavailable(throughemployees/consultants/contractors)toidentify,understandandmanagethepotentialenvironmentalrisksandimpactstoaslowasreasonablypracticable,forthepurposeofthecommitmentsinthefirmperiod(only)oftheproposedworkprogramforapetroleumexplorationpermitorthewellstobedrilledunderapetroleumdrillingreservation.
8.2. Whereapplicable,thespatialrelationshipbetweenthecommitmentsinthefirmperiodoftheproposedworkprogramforapetroleumexplorationpermit,orwellstobedrilledunderapetroleumdrillingreservation,andidentifiedsensitiveenvironmentalareasandaspectswithinthedefinedareaandinthesurroundingarea,shouldbedemonstrated.
8.3. Sensitiveenvironmentalareasandaspectsmayinclude(butarenotlimitedto):
8.3.1. culturalandheritagesites
8.3.2. publicdrinkingwatersourceareas(andothersensitivewaterresources)
8.3.3. marineandterrestrialprotectedareas
8.3.4. areasofprotectedorrareandendangeredfloraorfauna
8.3.5. areasofsignificanthabitat(includingcorals,seagrasses,mangroves,andwetlands)
8.3.6. areasoftemporalsignificance(includingbreedinggrounds,migrationroutesandrestingandaggregationareas).
8.4. Forthepurposeofclauses9.1and9.2,inareaswithknownsensitiveenvironmentalareasandaspects,applicantsshouldundertakedesktopsurveystoclarifysensitivitiesforsubmissionintheapplication.
PAGE10of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
For the purpose section 31(1)(d)(iv) and section 43B(1)(d)(vi) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –
8.5. Applicantsmustprovideevidenceasassuranceofitsfinancialcapacitytomanagethepotentialworstcaserisksandimpactstotheenvironmentassociatedwithundertakingthecommitmentsinthefirmperiod(only)oftheproposedworkprogramforapetroleumexplorationpermitorthewellstobedrilledunderapetroleumdrillingreservation.
For the purpose of section 31(1)(e) and section 43B(1)(e) of the PGERA67 and section 21(1)(e) of the PSLA82 –
8.6. ApplicantsmayprovidedetailsofpastperformanceinrespecttomattersofassessmentandcomplianceagainstStatelegislation,suchastheEnvironmental Protection Act 1986(andassociatedRegulations),Contaminated Sites Act 2003,PGERA67,PetroleumandGeothermalEnergyResources(Environment)Regulations2012,PSLA82,andthePetroleum(SubmergedLands)(Environment)Regulations2012.
8.7. ApplicantsmayprovidedetailsofitspastperformanceinrespecttomattersofassessmentandcomplianceundertheCommonwealthEnvironment Protection and Biodiversity Conservation Act 1999.
9. CRITERIA FOR ASSESSMENT – NATIVE TITLE AND HERITAGE MANAGEMENT
9.1. Beforeapetroleumexplorationpermitorpetroleumdrillingreservationmaybeofferedforgrant,theapplicantmustfirstcomplywiththefutureactprovisionsoftheCommonwealthNative Title Act 1993(“NTA93”).
For the purpose of sections 31(1)(d)(ii-iii) and section 43B(1)(d)(ii-iii)of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –
9.2. Applicantsmustprovidedetailsofthetechnicalexpertiseavailabletotheapplicant(throughemployees/consultants/contractors)tobeusedtofulfilthefutureactprovisionsoftheNTA93.
For the purpose of section 31(1)(d)(iv) and section 43B(1)(d)(vi) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –
9.3. ApplicantsmustprovideevidenceasassuranceofitsfinancialcapacitytomanageproceedingsrequiredtomeetthefutureactprovisionsoftheNTA93.
For the purpose of section 31(1)(e) and section 43B(1)(e) of the PGERA67 and 21(1)(e) of the PSLA82 –
9.4. Applicantsmayprovidedetailsofpastperformanceinrespectto:
9.4.1. workingwithAboriginalstakeholdersonsites,objectsorculturalheritagematters
9.4.2. negotiating‘ingoodfaith’undertheNTA93
9.4.3. theAboriginal Heritage Act 1972
9.4.4. reserved land under the Aboriginal Affairs Planning Authority Act 1972.
9.5. ApplicantsmayprovideastatementofcommitmenttoundertakeduediligenceinpreservingandprotectingAboriginalheritage,includingitsintentiontocommissionculturalheritagesurveys(ifrequired),andcommissionheritagemonitors(whereapplicable)duringon-groundoperationalactivitiesinrespectofthecommitmentsinthefirmperiod(only)oftheproposedworkprogram.
10. CRITERIA FOR ASSESSMENT – LAND ACCESS MANAGEMENT
10.1. Earlyandongoingengagementwithrelevantstakeholderswillassistinensuringlocalandregionalvaluesandsensitivitiesareadequatelyconsidered,particularlyinthecontextofoverlappinglanduses.
10.2. Withreferencetosection117ofthePGERA67andsection124ofthePSLA82,theregisteredholderofapetroleumexplorationpermitorpetroleumdrillingreservationmustadoptagoodneighbourphilosophyandcarryoutalloperationsinamannerthatdoesnotinterferewithothers’rightstoagreaterextentthanisnecessaryforthereasonableexerciseoftherightsandperformanceofthedutiesoftheregisteredholder.
10.3. Applicantsshouldbeawareoftheprovisionsofsection15AofthePGERA67andnotethatconsentoftheMinisterisrequiredforentryonreservesforthepurposesofexploration.
10.4. Applicantsshouldbeawareoftheprovisionsofsection91BofthePGERA67andnotethattheMinistermaygrantapetroleumexplorationpermitorpetroleumdrillingreservationsubjecttoaconditionprohibitingentryontospecifiedland.
10.5. Inaddressingthecriteria,applicantsforapetroleumexplorationpermitshouldfocusonstakeholderidentificationand,whereapplicable,stakeholderengagementpriortothegrantofapetroleumexplorationpermitandduringthefirmperiodoftheproposedworkprogram.
10.6. Inaddressingthecriteria,applicantsforapetroleumdrillingreservationshouldfocusontheperiodspriortothegrantand during the term of a petroleum drilling reservation.
PAGE11of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
11.
12.
For the purpose of sections 31(1)(d)(ii-iii) and section 43B(1)(d)(ii-iii)of the PGERA67 and sections 21(1)(d)(ii-iii) of the PSLA82 –
10.7. An applicant must provide details of its technical expertise available (through employees/consultants/contractors) to be utilised for the management of land access, consultation and stakeholder engagement, and having regard to clause 10.2.
10.8. Where applicable, applicants must also provide details of its technical capacity to satisfy the requirements of sections16 through 20 of the PGERA67 with respect to consent and compensation for accessing certain lands.
For the purpose of section 31(1)(d)(iv) and section 43B(1)(d)(vi) of the PGERA67 and section 21(1)(d)(iv) of the PSLA82 –
10.9. Applicants must provide evidence as assurance of its financial capacity to manage land access, consultation andstakeholder engagement, and having regard to clause 10.2.
10.10. Where applicable, applicants must also provide details of its financial capacity to satisfy the requirements of sections16 through 20 of the PGERA67 with respect to consent and compensation for accessing certain lands.
For the purpose of section 31(1)(e) and section 43B(1)(e) of the PGERA67 and section 21(1)(e) of the PSLA82 –
10.11. Applicants may provide details of past performance in respect to:
10.11.1. negotiating private land access agreements
10.11.2. negating potential barriers to land access that may impact the proposed work program such as land use,infrastructure or seasonal restrictions
10.11.3. utilising industry standards and/or codes of conduct/practice for management of land access, consultation, andstakeholder engagement.
10.12. Applicants should note that post grant of a petroleum exploration permit or petroleum drilling reservation, thePetroleum and Geothermal Energy Resources (Environment) Regulations 2012 require an appropriate level ofconsultation with relevant authorities, interested persons and organisations for the approval of an environment planfor petroleum operations.
APPROVAL OF TRANSFERS
11.1. Section 72 of the PGERA67 and section 78 of the PSLA82 provide for the approval and registration of a transfer of a title.
11.2. In a case where the transferee, or one or more of the transferees, is not a registered holder, or are not registered holdersof the title, an application must include:
(i) the technical qualifications of that transferee or those transferees.
(ii) details of the technical advice that is or will be available to that transferee or those transferees.
(iii) details of the financial resources that are or will be available to that transferee or those transferees.
11.3. For consistency, the overview at Clause 5 of this Guideline will be of assistance to transferees in respect to 11.2 above.
RE-RELEASE OF ACREAGE
12.1. The re-release of a release area will be at the discretion of the Minister and will usually occur once in the same graticularblock configuration.
12.2. It is generally intended that an area will be re-released if the Minister does not receive an application considereddeserving of the award of a petroleum exploration permit or petroleum drilling reservation.
12.3. A release area may also be re-released if a most deserving application is refused prior to the grant of a petroleumexploration permit.
12.4. Where possible, the closing date and time for lodgement of applications in respect of re-release areas will coincide withthe normal acreage release process.
PAGE12of13 PD-PTLA-AR-106DRev10
Petroleum Division
www.dmp.wa.gov.au
13. MOST DESERVING APPLICANT
13.1. TheMinisterwillemploythemethodologyprovidedinClause14–Assessment–todeterminethemostdeservingapplicantforthepurposesofsection32Aandsection43CAofthePGERA67andsection22AofthePSLA82.
13.2. TheMinistermayalsoinviteapplicantstomeetwiththedepartmentforinterviewforthepurposeofclause13.1. Onceapplicationsarereceivedtheycannotbeamended;withtheexceptionofclause13.5.
13.3. TheMinistermayrequestfurtherinformation,inrelationtoanapplication,inaccordancewithsection31(4)andsection43B(4)ofthePGERA67orsection21(4)ofthePSLA82.
13.4. NewmarketentrantstoWesternAustraliamaybeaskedtoprovideinformationastopastperformancefromothernationalorinternationaljurisdictions.
13.5. IftheMinisterisoftheopinionthattwoormoreapplicantsareequallydeservingofthegrantofapetroleumexplorationpermitorpetroleumdrillingreservationafterassessmentagainstthemethodology,theMinistermayrequestadditionalworkandexpenditure,withinthefirmperiod,todeterminethemostdeservingapplicantforthepurposeofsection32A(5)andsection43CA(5)ofthePGERA67andsection22A(5)ofthePSLA82).
14. ASSESSMENT
14.1. TheMinisterwillemployatwo-stepmethodologytodeterminethemostdeservingapplicantforthepurposesofsection32Aandsection43CAofthePGERA67andsection22AofthePSLA82.
14.2. Table1belowprovidesfortheinitialapplicationassessmentforbothsoleandcompetitivebids.
14.3. Table2belowprovidesforanapplicantcomparativeassessmentofcompetingbidstoidentifythemost deservingapplicant.
14.4. Asstatedaboveinclause13.5,IftheMinisterisoftheopinionthattwoormoreapplicantsareequallydeservingofthegrantofapetroleumexplorationpermitorpetroleumdrillingreservationafterassessmentagainstthemethodology,theMinistermayrequestadditionalworkandexpendituretodeterminethemostdeservingapplicantforthepurposeofsection32A(5)andsection43CA(5)ofthePGERA67andsection22A(5)ofthePSLA82).
Table 1 – Application assessment (for sole and competitive bids) – e.g. ‘Application A’– refer to Clause 4 of Guideline Overview of Criteria for Assessment.
To meet the requirements of:
Applicantprofile Geologicalevaluation and
explorationrationale
Environemtnal management
NativeTitleandHeritagemanagement
Landaccessmanagement
Comment/s
Workandexpenditure N/A N/A N/A N/A
Technicalresources
Financialresources
Othermattersofconsideration
N/A=notapplicable(seeClause4–OverviewofCriteriaforAssessment)
Table 2 – Comparitive assessment for competitive bids
Application A B
Workandexpenditure
Technicalresources
Financialresources
Othermattersofconsideration
Comment
Mostdeservingrank
Key: Superior Relevantbutinferior SignificantlyInferior Equal
PAGE13of13 PD-PTLA-AR-106DRev10
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