{"id":"qld:sl-2021-0124","name":"Petroleum and Gas (Royalty) Regulation 2021","slug":"petroleum-and-gas-royalty-regulation-2021","collection":"regulation","jurisdiction":"qld","status":"in_force","isInForce":true,"actNumber":"124 of 2021","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":173865,"registerId":"qld-sl-2021-0124-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"pt.1","sectionType":"part","heading":"Preliminary","content":"# Preliminary","sortOrder":0},{"sectionNumber":"sec.1","sectionType":"section","heading":"Short title","content":"### sec.1 Short title\n\nThis regulation may be cited as the Petroleum and Gas (Royalty) Regulation 2021 .","sortOrder":1},{"sectionNumber":"sec.2","sectionType":"section","heading":"Commencement","content":"### sec.2 Commencement\n\nThis regulation commences on 1 September 2021.","sortOrder":2},{"sectionNumber":"sec.3","sectionType":"section","heading":"Dictionary","content":"### sec.3 Dictionary\n\nThe dictionary in schedule 1 defines particular words used in this regulation.","sortOrder":3},{"sectionNumber":"pt.2","sectionType":"part","heading":"Petroleum royalty","content":"# Petroleum royalty","sortOrder":4},{"sectionNumber":"pt.2-div.1","sectionType":"division","heading":"Preliminary","content":"## Preliminary","sortOrder":5},{"sectionNumber":"sec.4","sectionType":"section","heading":"Purpose of part","content":"### sec.4 Purpose of part\n\nThis part prescribes—\nfor section 590 (2) (a) of the Act , the time on or before which petroleum royalty must be paid; and\nfor section 590 (2) (b) of the Act , the way in which petroleum royalty is calculated; and\nfor section 590 (2) (c) of the Act , the rate at which petroleum royalty is payable.\n- (a) for section 590 (2) (a) of the Act , the time on or before which petroleum royalty must be paid; and\n- (b) for section 590 (2) (b) of the Act , the way in which petroleum royalty is calculated; and\n- (c) for section 590 (2) (c) of the Act , the rate at which petroleum royalty is payable.","sortOrder":6},{"sectionNumber":"sec.5","sectionType":"section","heading":"Definitions for part","content":"### sec.5 Definitions for part\n\nIn this part—\naverage hedge settlement rate , for a royalty return period, means the average, worked out for the royalty return period, of the hedge settlement rates for each day in the royalty return period.\ndomestic gas see section 6 .\ngas means petroleum in a gaseous state at standard temperature and pressure.\nhedge settlement rate , for a day, means the WM/Reuters Australian Fix 10.00a.m. rate on the day.\nindependent buyer , in relation to a petroleum producer or a reseller for the producer, means a person who is not a relevant entity for the producer.\nliquid petroleum see section 9 .\nLNG means liquefied natural gas.\nLNG project means an LNG project under a determination of the revenue commissioner under section 10 .\nLNG project buyer , in relation to a petroleum producer or a reseller for the producer, means a person who the producer or reseller knows is a member of an LNG project because—\nthe person has, under section 12 (2) , given the producer or the reseller a notice stating that the person is a member of the LNG project; or\nthe revenue commissioner has, under section 12 (4) , told the producer or the reseller that the person is a member of the LNG project.\nmember , of an LNG project, means a member of an LNG project under a determination of the revenue commissioner under section 10 .\noil means petroleum in a liquid state.\nproject gas see section 8 .\nstandard temperature and pressure means an absolute pressure of 101.325kPa at a temperature of 15ºC.\nsupply gas see section 7 .\nTo remove any doubt, it is declared that, for this part, a reference to a petroleum producer includes a participant in a joint venture, or other arrangement, involving the production of petroleum who is taken to be a petroleum producer under section 590 (4) of the Act .\n(sec.5-ssec.1) In this part— average hedge settlement rate , for a royalty return period, means the average, worked out for the royalty return period, of the hedge settlement rates for each day in the royalty return period. domestic gas see section 6 . gas means petroleum in a gaseous state at standard temperature and pressure. hedge settlement rate , for a day, means the WM/Reuters Australian Fix 10.00a.m. rate on the day. independent buyer , in relation to a petroleum producer or a reseller for the producer, means a person who is not a relevant entity for the producer. liquid petroleum see section 9 . LNG means liquefied natural gas. LNG project means an LNG project under a determination of the revenue commissioner under section 10 . LNG project buyer , in relation to a petroleum producer or a reseller for the producer, means a person who the producer or reseller knows is a member of an LNG project because— the person has, under section 12 (2) , given the producer or the reseller a notice stating that the person is a member of the LNG project; or the revenue commissioner has, under section 12 (4) , told the producer or the reseller that the person is a member of the LNG project. member , of an LNG project, means a member of an LNG project under a determination of the revenue commissioner under section 10 . oil means petroleum in a liquid state. project gas see section 8 . standard temperature and pressure means an absolute pressure of 101.325kPa at a temperature of 15ºC. supply gas see section 7 .\n(sec.5-ssec.2) To remove any doubt, it is declared that, for this part, a reference to a petroleum producer includes a participant in a joint venture, or other arrangement, involving the production of petroleum who is taken to be a petroleum producer under section 590 (4) of the Act .\n- (a) the person has, under section 12 (2) , given the producer or the reseller a notice stating that the person is a member of the LNG project; or\n- (b) the revenue commissioner has, under section 12 (4) , told the producer or the reseller that the person is a member of the LNG project.","sortOrder":7},{"sectionNumber":"sec.6","sectionType":"section","heading":"What is domestic gas","content":"### sec.6 What is domestic gas\n\nPetroleum produced by a petroleum producer in a royalty return period is domestic gas if—\nthe petroleum is gas; and\nduring the royalty return period, the petroleum is—\nsold or otherwise transferred, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is not an LNG project buyer; or\nflared, used or vented; or\nif the producer is not a member of an LNG project—stored by, or kept in the possession of, the producer or 1 or more resellers for the producer; and\nthe petroleum is not supply gas.\nIn this section—\nuse , petroleum, does not include convert the petroleum into LNG.\n(sec.6-ssec.1) Petroleum produced by a petroleum producer in a royalty return period is domestic gas if— the petroleum is gas; and during the royalty return period, the petroleum is— sold or otherwise transferred, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is not an LNG project buyer; or flared, used or vented; or if the producer is not a member of an LNG project—stored by, or kept in the possession of, the producer or 1 or more resellers for the producer; and the petroleum is not supply gas.\n(sec.6-ssec.2) In this section— use , petroleum, does not include convert the petroleum into LNG.\n- (a) the petroleum is gas; and\n- (b) during the royalty return period, the petroleum is— (i) sold or otherwise transferred, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is not an LNG project buyer; or (ii) flared, used or vented; or (iii) if the producer is not a member of an LNG project—stored by, or kept in the possession of, the producer or 1 or more resellers for the producer; and\n- (i) sold or otherwise transferred, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is not an LNG project buyer; or\n- (ii) flared, used or vented; or\n- (iii) if the producer is not a member of an LNG project—stored by, or kept in the possession of, the producer or 1 or more resellers for the producer; and\n- (c) the petroleum is not supply gas.\n- (i) sold or otherwise transferred, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is not an LNG project buyer; or\n- (ii) flared, used or vented; or\n- (iii) if the producer is not a member of an LNG project—stored by, or kept in the possession of, the producer or 1 or more resellers for the producer; and","sortOrder":8},{"sectionNumber":"sec.7","sectionType":"section","heading":"What is supply gas","content":"### sec.7 What is supply gas\n\nPetroleum produced by a petroleum producer in a royalty return period is supply gas if—\nthe petroleum is gas; and\nthe petroleum is not produced by the producer as a member of an LNG project; and\nduring the royalty return period, the petroleum is sold or otherwise transferred, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is an LNG project buyer.\n- (a) the petroleum is gas; and\n- (b) the petroleum is not produced by the producer as a member of an LNG project; and\n- (c) during the royalty return period, the petroleum is sold or otherwise transferred, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is an LNG project buyer.","sortOrder":9},{"sectionNumber":"sec.8","sectionType":"section","heading":"What is project gas","content":"### sec.8 What is project gas\n\nPetroleum produced by a petroleum producer in a royalty return period is project gas if—\nthe petroleum is gas; and\nthe petroleum is produced by the petroleum producer as a member of an LNG project; and\nthe petroleum is not domestic gas.\n- (a) the petroleum is gas; and\n- (b) the petroleum is produced by the petroleum producer as a member of an LNG project; and\n- (c) the petroleum is not domestic gas.","sortOrder":10},{"sectionNumber":"sec.9","sectionType":"section","heading":"What is liquid petroleum","content":"### sec.9 What is liquid petroleum\n\nPetroleum produced by a petroleum producer in a royalty return period is liquid petroleum if the petroleum is oil.","sortOrder":11},{"sectionNumber":"pt.2-div.2","sectionType":"division","heading":"LNG projects","content":"## LNG projects","sortOrder":12},{"sectionNumber":"sec.10","sectionType":"section","heading":"Revenue commissioner may make determination that petroleum venture is LNG project","content":"### sec.10 Revenue commissioner may make determination that petroleum venture is LNG project\n\nThis section applies if the revenue commissioner believes a petroleum venture exists between—\n1 or more petroleum producers; and\n1 or more other persons each of whom is a relevant entity for a petroleum producer mentioned in paragraph (a) .\nThe revenue commissioner may make a determination that the petroleum venture is an LNG project.\nIf the revenue commissioner makes a determination under subsection (2) , the revenue commissioner must also make a determination of who are the members of the LNG project.\nThe revenue commissioner must give each person who is a member of the LNG project notice of the determinations under subsections (2) and (3) .\nThe notice must include the following information—\na description of the petroleum venture that constitutes the LNG project;\nthe names of the members of the LNG project;\nthe names of the petroleum producers who are members of the LNG project;\nthe petroleum tenures under which petroleum is produced for the LNG project.\nA determination under subsection (2) or (3) takes effect on the day stated in the notice.\nThe revenue commissioner may amend or revoke a determination made under subsection (2) or (3) by notice given to each person who is, or was before the amendment or revocation, a member of the LNG project.\nAn amendment or revocation under subsection (7) takes effect on the day stated in the notice.\nFor subsections (6) and (8) , the day stated in the notice may be a day before the day on which the revenue commissioner makes, amends or revokes the determination.\nIn this section—\npetroleum venture means a joint venture or other arrangement involving—\nthe production of gas for the purpose of converting the gas into LNG; and\nthe processing, transportation, storage, conversion, sale or purchase of the gas or LNG mentioned in paragraph (a) .\n(sec.10-ssec.1) This section applies if the revenue commissioner believes a petroleum venture exists between— 1 or more petroleum producers; and 1 or more other persons each of whom is a relevant entity for a petroleum producer mentioned in paragraph (a) .\n(sec.10-ssec.2) The revenue commissioner may make a determination that the petroleum venture is an LNG project.\n(sec.10-ssec.3) If the revenue commissioner makes a determination under subsection (2) , the revenue commissioner must also make a determination of who are the members of the LNG project.\n(sec.10-ssec.4) The revenue commissioner must give each person who is a member of the LNG project notice of the determinations under subsections (2) and (3) .\n(sec.10-ssec.5) The notice must include the following information— a description of the petroleum venture that constitutes the LNG project; the names of the members of the LNG project; the names of the petroleum producers who are members of the LNG project; the petroleum tenures under which petroleum is produced for the LNG project.\n(sec.10-ssec.6) A determination under subsection (2) or (3) takes effect on the day stated in the notice.\n(sec.10-ssec.7) The revenue commissioner may amend or revoke a determination made under subsection (2) or (3) by notice given to each person who is, or was before the amendment or revocation, a member of the LNG project.\n(sec.10-ssec.8) An amendment or revocation under subsection (7) takes effect on the day stated in the notice.\n(sec.10-ssec.9) For subsections (6) and (8) , the day stated in the notice may be a day before the day on which the revenue commissioner makes, amends or revokes the determination.\n(sec.10-ssec.10) In this section— petroleum venture means a joint venture or other arrangement involving— the production of gas for the purpose of converting the gas into LNG; and the processing, transportation, storage, conversion, sale or purchase of the gas or LNG mentioned in paragraph (a) .\n- (a) 1 or more petroleum producers; and\n- (b) 1 or more other persons each of whom is a relevant entity for a petroleum producer mentioned in paragraph (a) .\n- (a) a description of the petroleum venture that constitutes the LNG project;\n- (b) the names of the members of the LNG project;\n- (c) the names of the petroleum producers who are members of the LNG project;\n- (d) the petroleum tenures under which petroleum is produced for the LNG project.\n- (a) the production of gas for the purpose of converting the gas into LNG; and\n- (b) the processing, transportation, storage, conversion, sale or purchase of the gas or LNG mentioned in paragraph (a) .","sortOrder":13},{"sectionNumber":"sec.11","sectionType":"section","heading":"Revenue commissioner must reassess amount of royalty payable if particular determinations made","content":"### sec.11 Revenue commissioner must reassess amount of royalty payable if particular determinations made\n\nThis section applies if the revenue commissioner—\nhas made, amended or revoked a determination under section 10 (each a new decision ); and\nhas made an assessment under the Taxation Administration Act 2001 of the amount of petroleum royalty payable by a petroleum producer for a royalty return period without having regard to the new decision.\nThe revenue commissioner must reassess, under the Taxation Administration Act 2001 , the amount of petroleum royalty payable by the petroleum producer for the royalty return period having regard to the new decision.\nSee the Taxation Administration Act 2001 , part 4 for the revenue commissioner’s obligation to refund any excess amount on the making of the reassessment.\nSubsection (4) applies if, on the reassessment, the petroleum producer is liable for penalty tax, unpaid tax interest or a civil penalty (each a relevant liability ).\nThe revenue commissioner must remit the relevant liability to the extent it is payable only because of the operation of subsection (2) .\n(sec.11-ssec.1) This section applies if the revenue commissioner— has made, amended or revoked a determination under section 10 (each a new decision ); and has made an assessment under the Taxation Administration Act 2001 of the amount of petroleum royalty payable by a petroleum producer for a royalty return period without having regard to the new decision.\n(sec.11-ssec.2) The revenue commissioner must reassess, under the Taxation Administration Act 2001 , the amount of petroleum royalty payable by the petroleum producer for the royalty return period having regard to the new decision. See the Taxation Administration Act 2001 , part 4 for the revenue commissioner’s obligation to refund any excess amount on the making of the reassessment.\n(sec.11-ssec.3) Subsection (4) applies if, on the reassessment, the petroleum producer is liable for penalty tax, unpaid tax interest or a civil penalty (each a relevant liability ).\n(sec.11-ssec.4) The revenue commissioner must remit the relevant liability to the extent it is payable only because of the operation of subsection (2) .\n- (a) has made, amended or revoked a determination under section 10 (each a new decision ); and\n- (b) has made an assessment under the Taxation Administration Act 2001 of the amount of petroleum royalty payable by a petroleum producer for a royalty return period without having regard to the new decision.","sortOrder":14},{"sectionNumber":"sec.12","sectionType":"section","heading":"Notification of status when petroleum producer, or reseller for producer, sells to member of LNG project","content":"### sec.12 Notification of status when petroleum producer, or reseller for producer, sells to member of LNG project\n\nThis section applies if a person—\nis a member of an LNG project; and\npurchases gas from a petroleum producer, or a reseller for the producer, who is not a member of the LNG project mentioned in paragraph (a) .\nThe person must, as soon as reasonably practicable after the purchase, give the petroleum producer, or the reseller for the producer, a notice stating that the person is a member of the LNG project.\nMaximum penalty—100 penalty units.\nHowever, subsection (2) does not apply if the person has already given the petroleum producer, or the reseller for the producer, a notice stating that the person is a member of the LNG project.\nThe revenue commissioner may tell the petroleum producer, or the reseller for the producer, that the person is a member of the LNG project.\n(sec.12-ssec.1) This section applies if a person— is a member of an LNG project; and purchases gas from a petroleum producer, or a reseller for the producer, who is not a member of the LNG project mentioned in paragraph (a) .\n(sec.12-ssec.2) The person must, as soon as reasonably practicable after the purchase, give the petroleum producer, or the reseller for the producer, a notice stating that the person is a member of the LNG project. Maximum penalty—100 penalty units.\n(sec.12-ssec.3) However, subsection (2) does not apply if the person has already given the petroleum producer, or the reseller for the producer, a notice stating that the person is a member of the LNG project.\n(sec.12-ssec.4) The revenue commissioner may tell the petroleum producer, or the reseller for the producer, that the person is a member of the LNG project.\n- (a) is a member of an LNG project; and\n- (b) purchases gas from a petroleum producer, or a reseller for the producer, who is not a member of the LNG project mentioned in paragraph (a) .","sortOrder":15},{"sectionNumber":"sec.13","sectionType":"section","heading":"Notification of revenue commissioner when persons involved in petroleum venture change","content":"### sec.13 Notification of revenue commissioner when persons involved in petroleum venture change\n\nSubsection (2) applies if a person who is a member of an LNG project (the departing member ) stops being involved in the petroleum venture that constitutes the LNG project.\nEach petroleum producer who continues to be involved in the petroleum venture must, within 30 days after the departing member stops being involved in the venture, give the revenue commissioner a notice stating that the departing member has stopped being involved in the venture.\nMaximum penalty—100 penalty units.\nSubsection (4) applies if a person (the new participant ) starts being involved in a petroleum venture that constitutes an LNG project.\nEach petroleum producer, including the new participant if the new participant is a petroleum producer, who is involved in the petroleum venture must, within 30 days after the new participant starts being involved in the venture, give the revenue commissioner a notice stating that the new participant has started being involved in the venture.\nMaximum penalty—100 penalty units.\nA petroleum producer may give a notice under subsection (2) or (4) jointly with another petroleum producer.\nThe revenue commissioner must, after receiving a notice under subsection (2) or (4) , make a decision about whether to amend or revoke—\nthe determination of the LNG project; or\nthe determination of the members of the LNG project.\n(sec.13-ssec.1) Subsection (2) applies if a person who is a member of an LNG project (the departing member ) stops being involved in the petroleum venture that constitutes the LNG project.\n(sec.13-ssec.2) Each petroleum producer who continues to be involved in the petroleum venture must, within 30 days after the departing member stops being involved in the venture, give the revenue commissioner a notice stating that the departing member has stopped being involved in the venture. Maximum penalty—100 penalty units.\n(sec.13-ssec.3) Subsection (4) applies if a person (the new participant ) starts being involved in a petroleum venture that constitutes an LNG project.\n(sec.13-ssec.4) Each petroleum producer, including the new participant if the new participant is a petroleum producer, who is involved in the petroleum venture must, within 30 days after the new participant starts being involved in the venture, give the revenue commissioner a notice stating that the new participant has started being involved in the venture. Maximum penalty—100 penalty units.\n(sec.13-ssec.5) A petroleum producer may give a notice under subsection (2) or (4) jointly with another petroleum producer.\n(sec.13-ssec.6) The revenue commissioner must, after receiving a notice under subsection (2) or (4) , make a decision about whether to amend or revoke— the determination of the LNG project; or the determination of the members of the LNG project.\n- (a) the determination of the LNG project; or\n- (b) the determination of the members of the LNG project.","sortOrder":16},{"sectionNumber":"pt.2-div.3","sectionType":"division","heading":"Royalty rates","content":"## Royalty rates","sortOrder":17},{"sectionNumber":"sec.14","sectionType":"section","heading":"Definitions for division","content":"### sec.14 Definitions for division\n\nIn this division—\nrelevant period , for a royalty return period, means—\nif the royalty return period is a calendar quarter—the 3-month period starting on the day that is 4 months immediately before the start of the royalty return period; or\nif the royalty return period is a financial year—the 12-month period starting on the day that is 4 months immediately before the start of the royalty return period.\nvolume , of petroleum, means—\nfor domestic gas, supply gas, project gas, gas or LNG—the volume converted to gigajoules; or\nfor liquid petroleum or oil—the volume measured in barrels.\n- (a) if the royalty return period is a calendar quarter—the 3-month period starting on the day that is 4 months immediately before the start of the royalty return period; or\n- (b) if the royalty return period is a financial year—the 12-month period starting on the day that is 4 months immediately before the start of the royalty return period.\n- (a) for domestic gas, supply gas, project gas, gas or LNG—the volume converted to gigajoules; or\n- (b) for liquid petroleum or oil—the volume measured in barrels.","sortOrder":18},{"sectionNumber":"sec.15","sectionType":"section","heading":"Definitions for subdivision","content":"### sec.15 Definitions for subdivision\n\nIn this subdivision—\naverage sales price , for domestic gas for a petroleum producer for a royalty return period, see sections 17 and 18 .\nbenchmark price , for domestic gas for a royalty return period, means the firm End of Day Wallumbilla Benchmark Price averaged over the period.","sortOrder":19},{"sectionNumber":"sec.16","sectionType":"section","heading":"Petroleum royalty for domestic gas","content":"### sec.16 Petroleum royalty for domestic gas\n\nIf petroleum produced by a petroleum producer in a royalty return period is domestic gas, the producer must pay petroleum royalty for the period on the volume of domestic gas produced in the period at the following rate—\nif the average sales price for domestic gas for the producer for the period is not more than $3 per gigajoule—0.02 cents per gigajoule for each 1 cent per gigajoule more than $0 per gigajoule;\nif the average sales price for domestic gas for the producer for the period is more than $3, but not more than $8, per gigajoule—6 cents per gigajoule plus 0.08 cents per gigajoule for each 1 cent per gigajoule more than $3 per gigajoule;\nif the average sales price for domestic gas for the producer for the period is more than $8 per gigajoule—46 cents per gigajoule plus 0.10 cents per gigajoule for each 1 cent per gigajoule more than $8 per gigajoule.\n- (a) if the average sales price for domestic gas for the producer for the period is not more than $3 per gigajoule—0.02 cents per gigajoule for each 1 cent per gigajoule more than $0 per gigajoule;\n- (b) if the average sales price for domestic gas for the producer for the period is more than $3, but not more than $8, per gigajoule—6 cents per gigajoule plus 0.08 cents per gigajoule for each 1 cent per gigajoule more than $3 per gigajoule;\n- (c) if the average sales price for domestic gas for the producer for the period is more than $8 per gigajoule—46 cents per gigajoule plus 0.10 cents per gigajoule for each 1 cent per gigajoule more than $8 per gigajoule.","sortOrder":20},{"sectionNumber":"sec.17","sectionType":"section","heading":"What is the average sales price for domestic gas","content":"### sec.17 What is the average sales price for domestic gas\n\nThe average sales price for domestic gas for a petroleum producer for a royalty return period is worked out using the following formula—\nwhere—\nASP is the average sales price.\nAR is the total revenue from all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis not an LNG project buyer; and\nis an independent buyer.\nAV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis not an LNG project buyer; and\nis an independent buyer.\nDS is the deemed sales value of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis not an LNG project buyer; and\nis not an independent buyer.\nDV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis not an LNG project buyer; and\nis not an independent buyer.\nFor subsection (1) , the deemed sales value of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is not an LNG project buyer and is not an independent buyer is worked out using the following formula—\nwhere—\nDS is the deemed sales value.\nBP is the benchmark price for domestic gas for the royalty return period.\nDV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis not an LNG project buyer; and\nis not an independent buyer.\n(sec.17-ssec.1) The average sales price for domestic gas for a petroleum producer for a royalty return period is worked out using the following formula— where— ASP is the average sales price. AR is the total revenue from all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is not an LNG project buyer; and is an independent buyer. AV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is not an LNG project buyer; and is an independent buyer. DS is the deemed sales value of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is not an LNG project buyer; and is not an independent buyer. DV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is not an LNG project buyer; and is not an independent buyer.\n(sec.17-ssec.2) For subsection (1) , the deemed sales value of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is not an LNG project buyer and is not an independent buyer is worked out using the following formula— where— DS is the deemed sales value. BP is the benchmark price for domestic gas for the royalty return period. DV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is not an LNG project buyer; and is not an independent buyer.\n- (a) is not an LNG project buyer; and\n- (b) is an independent buyer.\n- (a) is not an LNG project buyer; and\n- (b) is an independent buyer.\n- (a) is not an LNG project buyer; and\n- (b) is not an independent buyer.\n- (a) is not an LNG project buyer; and\n- (b) is not an independent buyer.\n- (a) is not an LNG project buyer; and\n- (b) is not an independent buyer.","sortOrder":21},{"sectionNumber":"sec.18","sectionType":"section","heading":"When average sales price is the benchmark price","content":"### sec.18 When average sales price is the benchmark price\n\nThis section applies in relation to domestic gas produced by a petroleum producer in a royalty return period if—\nan election made by the producer under subsection (3) is in effect; or\nthe producer does not provide, for an assessment, the information required to work out, under section 17 , the average sales price for domestic gas for the producer for the period; or\nno gas is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis not an LNG project buyer; and\nis an independent buyer; or\nthe revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\nDespite section 17 , the average sales price for domestic gas for the petroleum producer for the royalty return period is the benchmark price for domestic gas for the period.\nA petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\nAn election made by a petroleum producer under subsection (3) —\nstarts on the first day of the royalty return period for the royalty return in which the election is made; and\ncontinues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\nA petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\nThe revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\nThe revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\nThe election ends on the day stated in the notice.\nFor subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\nIn making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters—\nany arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases domestic gas from the producer or reseller;\nthe number of sales in the royalty return period of domestic gas produced by the petroleum producer;\nthe volume of domestic gas produced by the petroleum producer in the royalty return period that is sold to an independent buyer;\nthe volume of domestic gas produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer;\nany other matter the revenue commissioner considers relevant.\nThe revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\nThe decision takes effect on the day stated in the notice.\nFor subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n(sec.18-ssec.1) This section applies in relation to domestic gas produced by a petroleum producer in a royalty return period if— an election made by the producer under subsection (3) is in effect; or the producer does not provide, for an assessment, the information required to work out, under section 17 , the average sales price for domestic gas for the producer for the period; or no gas is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is not an LNG project buyer; and is an independent buyer; or the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n(sec.18-ssec.2) Despite section 17 , the average sales price for domestic gas for the petroleum producer for the royalty return period is the benchmark price for domestic gas for the period.\n(sec.18-ssec.3) A petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\n(sec.18-ssec.4) An election made by a petroleum producer under subsection (3) — starts on the first day of the royalty return period for the royalty return in which the election is made; and continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n(sec.18-ssec.5) A petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\n(sec.18-ssec.6) The revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\n(sec.18-ssec.7) The revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\n(sec.18-ssec.8) The election ends on the day stated in the notice.\n(sec.18-ssec.9) For subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\n(sec.18-ssec.10) In making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters— any arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases domestic gas from the producer or reseller; the number of sales in the royalty return period of domestic gas produced by the petroleum producer; the volume of domestic gas produced by the petroleum producer in the royalty return period that is sold to an independent buyer; the volume of domestic gas produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer; any other matter the revenue commissioner considers relevant.\n(sec.18-ssec.11) The revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\n(sec.18-ssec.12) The decision takes effect on the day stated in the notice.\n(sec.18-ssec.13) For subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n- (a) an election made by the producer under subsection (3) is in effect; or\n- (b) the producer does not provide, for an assessment, the information required to work out, under section 17 , the average sales price for domestic gas for the producer for the period; or\n- (c) no gas is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— (i) is not an LNG project buyer; and (ii) is an independent buyer; or\n- (i) is not an LNG project buyer; and\n- (ii) is an independent buyer; or\n- (d) the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n- (i) is not an LNG project buyer; and\n- (ii) is an independent buyer; or\n- (a) starts on the first day of the royalty return period for the royalty return in which the election is made; and\n- (b) continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n- (a) any arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases domestic gas from the producer or reseller;\n- (b) the number of sales in the royalty return period of domestic gas produced by the petroleum producer;\n- (c) the volume of domestic gas produced by the petroleum producer in the royalty return period that is sold to an independent buyer;\n- (d) the volume of domestic gas produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer;\n- (e) any other matter the revenue commissioner considers relevant.","sortOrder":22},{"sectionNumber":"sec.19","sectionType":"section","heading":"Definitions for subdivision","content":"### sec.19 Definitions for subdivision\n\nIn this subdivision—\naverage sales price , for supply gas for a petroleum producer for a royalty return period, see sections 21 and 23 .\nbenchmark price , for supply gas for a royalty return period, see section 22 .","sortOrder":23},{"sectionNumber":"sec.20","sectionType":"section","heading":"Petroleum royalty for supply gas","content":"### sec.20 Petroleum royalty for supply gas\n\nIf petroleum produced by a petroleum producer in a royalty return period is supply gas, the producer must pay petroleum royalty for the period on the volume of supply gas produced in the period at the following rate—\nif the average sales price for supply gas for the producer for the period is not more than $3 per gigajoule—0.05 cents per gigajoule for each 1 cent per gigajoule more than $0 per gigajoule;\nif the average sales price for supply gas for the producer for the period is more than $3, but not more than $8, per gigajoule—15 cents per gigajoule plus 0.10 cents per gigajoule for each 1 cent per gigajoule more than $3 per gigajoule;\nif the average sales price for supply gas for the producer for the period is more than $8 per gigajoule—65 cents per gigajoule plus 0.125 cents per gigajoule for each 1 cent per gigajoule more than $8 per gigajoule.\n- (a) if the average sales price for supply gas for the producer for the period is not more than $3 per gigajoule—0.05 cents per gigajoule for each 1 cent per gigajoule more than $0 per gigajoule;\n- (b) if the average sales price for supply gas for the producer for the period is more than $3, but not more than $8, per gigajoule—15 cents per gigajoule plus 0.10 cents per gigajoule for each 1 cent per gigajoule more than $3 per gigajoule;\n- (c) if the average sales price for supply gas for the producer for the period is more than $8 per gigajoule—65 cents per gigajoule plus 0.125 cents per gigajoule for each 1 cent per gigajoule more than $8 per gigajoule.","sortOrder":24},{"sectionNumber":"sec.21","sectionType":"section","heading":"What is the average sales price for supply gas","content":"### sec.21 What is the average sales price for supply gas\n\nThe average sales price for supply gas for a petroleum producer for a royalty return period is worked out using the following formula—\nwhere—\nASP is the average sales price.\nAR is the total revenue from all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis an LNG project buyer; and\nis an independent buyer.\nAV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis an LNG project buyer; and\nis an independent buyer.\nDS is the deemed sales value of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis an LNG project buyer; and\nis not an independent buyer.\nDV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis an LNG project buyer; and\nis not an independent buyer.\nFor subsection (1) , the deemed sales value of all gas sold in the royalty return period, either directly by the petroleum producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is an LNG project buyer and is not an independent buyer is worked out using the following formula—\nwhere—\nDS is the deemed sales value.\nBP is the benchmark price for supply gas for the royalty return period.\nDV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis an LNG project buyer; and\nis not an independent buyer.\n(sec.21-ssec.1) The average sales price for supply gas for a petroleum producer for a royalty return period is worked out using the following formula— where— ASP is the average sales price. AR is the total revenue from all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is an LNG project buyer; and is an independent buyer. AV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is an LNG project buyer; and is an independent buyer. DS is the deemed sales value of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is an LNG project buyer; and is not an independent buyer. DV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is an LNG project buyer; and is not an independent buyer.\n(sec.21-ssec.2) For subsection (1) , the deemed sales value of all gas sold in the royalty return period, either directly by the petroleum producer or indirectly by the producer through 1 or more resellers for the producer, to a person who is an LNG project buyer and is not an independent buyer is worked out using the following formula— where— DS is the deemed sales value. BP is the benchmark price for supply gas for the royalty return period. DV is the total volume of all gas sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is an LNG project buyer; and is not an independent buyer.\n- (a) is an LNG project buyer; and\n- (b) is an independent buyer.\n- (a) is an LNG project buyer; and\n- (b) is an independent buyer.\n- (a) is an LNG project buyer; and\n- (b) is not an independent buyer.\n- (a) is an LNG project buyer; and\n- (b) is not an independent buyer.\n- (a) is an LNG project buyer; and\n- (b) is not an independent buyer.","sortOrder":25},{"sectionNumber":"sec.22","sectionType":"section","heading":"What is the benchmark price for supply gas","content":"### sec.22 What is the benchmark price for supply gas\n\nThe benchmark price for supply gas for a royalty return period is the price worked out using the following formula—\nwhere—\nBP is the benchmark price for supply gas.\nSP is the average, for the relevant period for the royalty return period, of the daily Europe Brent Spot Price FOB (Dollars per Barrel) converted into Australian dollars at the average hedge settlement rate for the royalty return period.","sortOrder":26},{"sectionNumber":"sec.23","sectionType":"section","heading":"When average sales price is the benchmark price","content":"### sec.23 When average sales price is the benchmark price\n\nThis section applies in relation to supply gas produced by a petroleum producer in a royalty return period if—\nan election made by the producer under subsection (3) is in effect; or\nthe producer does not provide, for an assessment, the information required to work out, under section 21 , the average sales price for supply gas for the producer for the period; or\nno gas is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who—\nis an LNG project buyer; and\nis an independent buyer; or\nthe revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\nDespite section 21 , the average sales price for supply gas for the petroleum producer for the royalty return period is the benchmark price for supply gas for the period.\nA petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\nAn election made by a petroleum producer under subsection (3) —\nstarts on the first day of the royalty return period for the royalty return in which the election is made; and\ncontinues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\nA petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\nThe revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\nThe revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\nThe election ends on the day stated in the notice.\nFor subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\nIn making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters—\nany arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases supply gas from the producer or reseller;\nthe number of sales in the royalty return period of supply gas produced by the petroleum producer;\nthe volume of supply gas produced by the petroleum producer in the royalty return period that is sold to an independent buyer;\nthe volume of supply gas produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer;\nany other matter the revenue commissioner considers relevant.\nThe revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\nThe decision takes effect on the day stated in the notice.\nFor subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n(sec.23-ssec.1) This section applies in relation to supply gas produced by a petroleum producer in a royalty return period if— an election made by the producer under subsection (3) is in effect; or the producer does not provide, for an assessment, the information required to work out, under section 21 , the average sales price for supply gas for the producer for the period; or no gas is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— is an LNG project buyer; and is an independent buyer; or the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n(sec.23-ssec.2) Despite section 21 , the average sales price for supply gas for the petroleum producer for the royalty return period is the benchmark price for supply gas for the period.\n(sec.23-ssec.3) A petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\n(sec.23-ssec.4) An election made by a petroleum producer under subsection (3) — starts on the first day of the royalty return period for the royalty return in which the election is made; and continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n(sec.23-ssec.5) A petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\n(sec.23-ssec.6) The revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\n(sec.23-ssec.7) The revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\n(sec.23-ssec.8) The election ends on the day stated in the notice.\n(sec.23-ssec.9) For subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\n(sec.23-ssec.10) In making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters— any arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases supply gas from the producer or reseller; the number of sales in the royalty return period of supply gas produced by the petroleum producer; the volume of supply gas produced by the petroleum producer in the royalty return period that is sold to an independent buyer; the volume of supply gas produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer; any other matter the revenue commissioner considers relevant.\n(sec.23-ssec.11) The revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\n(sec.23-ssec.12) The decision takes effect on the day stated in the notice.\n(sec.23-ssec.13) For subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n- (a) an election made by the producer under subsection (3) is in effect; or\n- (b) the producer does not provide, for an assessment, the information required to work out, under section 21 , the average sales price for supply gas for the producer for the period; or\n- (c) no gas is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person who— (i) is an LNG project buyer; and (ii) is an independent buyer; or\n- (i) is an LNG project buyer; and\n- (ii) is an independent buyer; or\n- (d) the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n- (i) is an LNG project buyer; and\n- (ii) is an independent buyer; or\n- (a) starts on the first day of the royalty return period for the royalty return in which the election is made; and\n- (b) continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n- (a) any arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases supply gas from the producer or reseller;\n- (b) the number of sales in the royalty return period of supply gas produced by the petroleum producer;\n- (c) the volume of supply gas produced by the petroleum producer in the royalty return period that is sold to an independent buyer;\n- (d) the volume of supply gas produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer;\n- (e) any other matter the revenue commissioner considers relevant.","sortOrder":27},{"sectionNumber":"sec.24","sectionType":"section","heading":"Definitions for subdivision","content":"### sec.24 Definitions for subdivision\n\nIn this subdivision—\naverage sales price , for project gas for a petroleum producer for a royalty return period, see sections 26 and 28 .\nbenchmark price , for project gas for a royalty return period, see section 27 .","sortOrder":28},{"sectionNumber":"sec.25","sectionType":"section","heading":"Petroleum royalty for project gas","content":"### sec.25 Petroleum royalty for project gas\n\nIf petroleum produced by a petroleum producer in a royalty return period is project gas, the producer must pay petroleum royalty for the period on the volume of project gas produced in the period at the following rate—\nif the average sales price for project gas for the producer for the period is not more than $9 per gigajoule—0.03 cents per gigajoule for each 1 cent per gigajoule more than $0 per gigajoule;\nif the average sales price for project gas for the producer for the period is more than $9, but not more than $14, per gigajoule—27 cents per gigajoule plus 0.09 cents per gigajoule for each 1 cent per gigajoule more than $9 per gigajoule;\nif the average sales price for project gas for the producer for the period is more than $14 per gigajoule—72 cents per gigajoule plus 0.125 cents per gigajoule for each 1 cent per gigajoule more than $14 per gigajoule.\n- (a) if the average sales price for project gas for the producer for the period is not more than $9 per gigajoule—0.03 cents per gigajoule for each 1 cent per gigajoule more than $0 per gigajoule;\n- (b) if the average sales price for project gas for the producer for the period is more than $9, but not more than $14, per gigajoule—27 cents per gigajoule plus 0.09 cents per gigajoule for each 1 cent per gigajoule more than $9 per gigajoule;\n- (c) if the average sales price for project gas for the producer for the period is more than $14 per gigajoule—72 cents per gigajoule plus 0.125 cents per gigajoule for each 1 cent per gigajoule more than $14 per gigajoule.","sortOrder":29},{"sectionNumber":"sec.26","sectionType":"section","heading":"What is the average sales price for project gas","content":"### sec.26 What is the average sales price for project gas\n\nThe average sales price for project gas for a petroleum producer for a royalty return period is worked out using the following formula—\nwhere—\nASP is the average sales price.\nAR is the total revenue from all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project.\nAV is the total volume of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project.\nDS is the deemed sales value of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project.\nDV is the total volume of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project.\nFor subsection (1) , the deemed sales value of all LNG sold in the royalty return period, by each member of the LNG project of which the petroleum producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project is worked out using the following formula—\nwhere—\nDS is the deemed sales value.\nBP is the benchmark price for project gas for the royalty return period.\nDV is the total volume of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project.\n(sec.26-ssec.1) The average sales price for project gas for a petroleum producer for a royalty return period is worked out using the following formula— where— ASP is the average sales price. AR is the total revenue from all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project. AV is the total volume of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project. DS is the deemed sales value of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project. DV is the total volume of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project.\n(sec.26-ssec.2) For subsection (1) , the deemed sales value of all LNG sold in the royalty return period, by each member of the LNG project of which the petroleum producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project is worked out using the following formula— where— DS is the deemed sales value. BP is the benchmark price for project gas for the royalty return period. DV is the total volume of all LNG sold in the royalty return period, by each member of the LNG project of which the producer is a member, to a person who is either a member of the LNG project or a relevant entity for a member of the LNG project.","sortOrder":30},{"sectionNumber":"sec.27","sectionType":"section","heading":"What is the benchmark price for project gas","content":"### sec.27 What is the benchmark price for project gas\n\nThe benchmark price for project gas for a royalty return period is the price worked out using the following formula—\nwhere—\nBP is the benchmark price for project gas.\nSP is the average, for the relevant period for the royalty return period, of the daily Europe Brent Spot Price FOB (Dollars per Barrel) converted into Australian dollars at the average hedge settlement rate for the royalty return period.","sortOrder":31},{"sectionNumber":"sec.28","sectionType":"section","heading":"When average sales price is the benchmark price","content":"### sec.28 When average sales price is the benchmark price\n\nThis section applies in relation to project gas produced by a petroleum producer in a royalty return period if—\nan election made by the producer under subsection (3) is in effect; or\nthe producer does not provide, for an assessment, the information required to work out, under section 26 , the average sales price for project gas for the producer for the period; or\nno LNG is sold in the period, by a member of the LNG project of which the producer is a member, to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project; or\nthe revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\nDespite section 26 , the average sales price for project gas for the petroleum producer for the royalty return period is the benchmark price for project gas for the period.\nA petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\nAn election made by a petroleum producer under subsection (3) —\nstarts on the first day of the royalty return period for the royalty return in which the election is made; and\ncontinues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\nA petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\nThe revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\nThe revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\nThe election ends on the day stated in the notice.\nFor subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\nIn making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters—\nany arrangements existing between a member of the LNG project of which the petroleum producer is a member and a person who purchases LNG from a member of the LNG project;\nthe number of sales of LNG in the royalty return period by all members of the LNG project of which the petroleum producer is a member;\nthe volume of LNG sold in the royalty return period by all members of the LNG project of which the petroleum producer is a member to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project;\nthe volume of LNG sold in the royalty return period by all members of the LNG project of which the petroleum producer is a member to a person who is a member of the LNG project or a relevant entity for a member of the LNG project;\nany other matter the revenue commissioner considers relevant.\nThe revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\nThe decision takes effect on the day stated in the notice.\nFor subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n(sec.28-ssec.1) This section applies in relation to project gas produced by a petroleum producer in a royalty return period if— an election made by the producer under subsection (3) is in effect; or the producer does not provide, for an assessment, the information required to work out, under section 26 , the average sales price for project gas for the producer for the period; or no LNG is sold in the period, by a member of the LNG project of which the producer is a member, to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project; or the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n(sec.28-ssec.2) Despite section 26 , the average sales price for project gas for the petroleum producer for the royalty return period is the benchmark price for project gas for the period.\n(sec.28-ssec.3) A petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\n(sec.28-ssec.4) An election made by a petroleum producer under subsection (3) — starts on the first day of the royalty return period for the royalty return in which the election is made; and continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n(sec.28-ssec.5) A petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\n(sec.28-ssec.6) The revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\n(sec.28-ssec.7) The revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\n(sec.28-ssec.8) The election ends on the day stated in the notice.\n(sec.28-ssec.9) For subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\n(sec.28-ssec.10) In making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters— any arrangements existing between a member of the LNG project of which the petroleum producer is a member and a person who purchases LNG from a member of the LNG project; the number of sales of LNG in the royalty return period by all members of the LNG project of which the petroleum producer is a member; the volume of LNG sold in the royalty return period by all members of the LNG project of which the petroleum producer is a member to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project; the volume of LNG sold in the royalty return period by all members of the LNG project of which the petroleum producer is a member to a person who is a member of the LNG project or a relevant entity for a member of the LNG project; any other matter the revenue commissioner considers relevant.\n(sec.28-ssec.11) The revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\n(sec.28-ssec.12) The decision takes effect on the day stated in the notice.\n(sec.28-ssec.13) For subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n- (a) an election made by the producer under subsection (3) is in effect; or\n- (b) the producer does not provide, for an assessment, the information required to work out, under section 26 , the average sales price for project gas for the producer for the period; or\n- (c) no LNG is sold in the period, by a member of the LNG project of which the producer is a member, to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project; or\n- (d) the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n- (a) starts on the first day of the royalty return period for the royalty return in which the election is made; and\n- (b) continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n- (a) any arrangements existing between a member of the LNG project of which the petroleum producer is a member and a person who purchases LNG from a member of the LNG project;\n- (b) the number of sales of LNG in the royalty return period by all members of the LNG project of which the petroleum producer is a member;\n- (c) the volume of LNG sold in the royalty return period by all members of the LNG project of which the petroleum producer is a member to a person who is neither a member of the LNG project nor a relevant entity for a member of the LNG project;\n- (d) the volume of LNG sold in the royalty return period by all members of the LNG project of which the petroleum producer is a member to a person who is a member of the LNG project or a relevant entity for a member of the LNG project;\n- (e) any other matter the revenue commissioner considers relevant.","sortOrder":32},{"sectionNumber":"sec.29","sectionType":"section","heading":"Definitions for subdivision","content":"### sec.29 Definitions for subdivision\n\nIn this subdivision—\naverage sales price , for liquid petroleum for a petroleum producer for a royalty return period, see sections 31 and 32 .\nbenchmark price , for liquid petroleum for a royalty return period, is the average, for the royalty return period, of the daily Europe Brent Spot Price FOB (Dollars per Barrel) converted into Australian dollars at the average hedge settlement rate for the royalty return period.","sortOrder":33},{"sectionNumber":"sec.30","sectionType":"section","heading":"Petroleum royalty for liquid petroleum","content":"### sec.30 Petroleum royalty for liquid petroleum\n\nIf petroleum produced by a petroleum producer in a royalty return period is liquid petroleum, the producer must pay petroleum royalty for the period on the volume of liquid petroleum produced in the period at the following rate—\nif the average sales price for liquid petroleum for the producer for the period is not more than $50 per barrel—0.03 cents per barrel for each 1 cent per barrel more than $0 per barrel;\nif the average sales price for liquid petroleum for the producer for the period is more than $50, but not more than $100, per barrel—$1.50 per barrel plus 0.115 cents per barrel for each 1 cent per barrel more than $50 per barrel;\nif the average sales price for liquid petroleum for the producer for the period is more than $100 per barrel—$7.25 per barrel plus 0.125 cents per barrel for each 1 cent per barrel more than $100 per barrel.\n- (a) if the average sales price for liquid petroleum for the producer for the period is not more than $50 per barrel—0.03 cents per barrel for each 1 cent per barrel more than $0 per barrel;\n- (b) if the average sales price for liquid petroleum for the producer for the period is more than $50, but not more than $100, per barrel—$1.50 per barrel plus 0.115 cents per barrel for each 1 cent per barrel more than $50 per barrel;\n- (c) if the average sales price for liquid petroleum for the producer for the period is more than $100 per barrel—$7.25 per barrel plus 0.125 cents per barrel for each 1 cent per barrel more than $100 per barrel.","sortOrder":34},{"sectionNumber":"sec.31","sectionType":"section","heading":"What is the average sales price for liquid petroleum","content":"### sec.31 What is the average sales price for liquid petroleum\n\nThe average sales price for liquid petroleum for a petroleum producer for a royalty return period is worked out using the following formula—\nwhere—\nASP is the average sales price.\nAR is the total revenue from all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to an independent buyer.\nAV is the total volume of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to an independent buyer.\nDS is the deemed sales value of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer.\nDV is the total volume of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer.\nFor subsection (1) , the deemed sales value of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer is worked out using the following formula—\nwhere—\nDS is the deemed sales value.\nBP is the benchmark price for liquid petroleum for the royalty return period.\nDV is the total volume of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer.\n(sec.31-ssec.1) The average sales price for liquid petroleum for a petroleum producer for a royalty return period is worked out using the following formula— where— ASP is the average sales price. AR is the total revenue from all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to an independent buyer. AV is the total volume of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to an independent buyer. DS is the deemed sales value of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer. DV is the total volume of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer.\n(sec.31-ssec.2) For subsection (1) , the deemed sales value of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer is worked out using the following formula— where— DS is the deemed sales value. BP is the benchmark price for liquid petroleum for the royalty return period. DV is the total volume of all oil sold in the royalty return period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to a person other than an independent buyer.","sortOrder":35},{"sectionNumber":"sec.32","sectionType":"section","heading":"When average sales price is the benchmark price","content":"### sec.32 When average sales price is the benchmark price\n\nThis section applies in relation to liquid petroleum produced by a petroleum producer in a royalty return period if—\nan election made by the producer under subsection (3) is in effect; or\nthe producer does not provide, for an assessment, the information required to work out, under section 31 , the average sales price for liquid petroleum for the producer for the period; or\nno oil is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to an independent buyer; or\nthe revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\nDespite section 31 , the average sales price for liquid petroleum for the petroleum producer for the royalty return period is the benchmark price for liquid petroleum for the period.\nA petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\nAn election made by a petroleum producer under subsection (3) —\nstarts on the first day of the royalty return period for the royalty return in which the election is made; and\ncontinues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\nA petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\nThe revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\nThe revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\nThe election ends on the day stated in the notice.\nFor subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\nIn making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters—\nany arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases liquid petroleum from the producer or reseller;\nthe number of sales in the royalty return period of liquid petroleum produced by the petroleum producer;\nthe volume of liquid petroleum produced by the petroleum producer in the royalty return period that is sold to an independent buyer;\nthe volume of liquid petroleum produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer;\nany other matter the revenue commissioner considers relevant.\nThe revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\nThe decision takes effect on the day stated in the notice.\nFor subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n(sec.32-ssec.1) This section applies in relation to liquid petroleum produced by a petroleum producer in a royalty return period if— an election made by the producer under subsection (3) is in effect; or the producer does not provide, for an assessment, the information required to work out, under section 31 , the average sales price for liquid petroleum for the producer for the period; or no oil is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to an independent buyer; or the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n(sec.32-ssec.2) Despite section 31 , the average sales price for liquid petroleum for the petroleum producer for the royalty return period is the benchmark price for liquid petroleum for the period.\n(sec.32-ssec.3) A petroleum producer may make an election in a royalty return lodged by the producer for subsection (2) to apply.\n(sec.32-ssec.4) An election made by a petroleum producer under subsection (3) — starts on the first day of the royalty return period for the royalty return in which the election is made; and continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n(sec.32-ssec.5) A petroleum producer may apply to the revenue commissioner in the approved form to end an election made under subsection (3) .\n(sec.32-ssec.6) The revenue commissioner may decide to end the election only if the revenue commissioner considers ending the election is appropriate having regard to all of the circumstances, including, for example, the protection of the public revenue.\n(sec.32-ssec.7) The revenue commissioner must give the petroleum producer notice of a decision under subsection (6) .\n(sec.32-ssec.8) The election ends on the day stated in the notice.\n(sec.32-ssec.9) For subsection (8) , the day stated in the notice may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.\n(sec.32-ssec.10) In making a decision under subsection (1) (d) , the revenue commissioner may have regard to any of the following matters— any arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases liquid petroleum from the producer or reseller; the number of sales in the royalty return period of liquid petroleum produced by the petroleum producer; the volume of liquid petroleum produced by the petroleum producer in the royalty return period that is sold to an independent buyer; the volume of liquid petroleum produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer; any other matter the revenue commissioner considers relevant.\n(sec.32-ssec.11) The revenue commissioner must give a petroleum producer notice of a decision under subsection (1) (d) .\n(sec.32-ssec.12) The decision takes effect on the day stated in the notice.\n(sec.32-ssec.13) For subsection (12) , the day stated in the notice may be a day before the day on which the revenue commissioner makes the decision.\n- (a) an election made by the producer under subsection (3) is in effect; or\n- (b) the producer does not provide, for an assessment, the information required to work out, under section 31 , the average sales price for liquid petroleum for the producer for the period; or\n- (c) no oil is sold in the period, either directly by the producer or indirectly by the producer through 1 or more resellers for the producer, to an independent buyer; or\n- (d) the revenue commissioner decides it is appropriate for the protection of the public revenue for subsection (2) to apply.\n- (a) starts on the first day of the royalty return period for the royalty return in which the election is made; and\n- (b) continues in effect for each royalty return period after the royalty return period mentioned in paragraph (a) unless the revenue commissioner ends the election under subsection (6) .\n- (a) any arrangements existing between the petroleum producer, or 1 or more resellers for the producer, and a person who purchases liquid petroleum from the producer or reseller;\n- (b) the number of sales in the royalty return period of liquid petroleum produced by the petroleum producer;\n- (c) the volume of liquid petroleum produced by the petroleum producer in the royalty return period that is sold to an independent buyer;\n- (d) the volume of liquid petroleum produced by the petroleum producer in the royalty return period that is sold to a person other than an independent buyer;\n- (e) any other matter the revenue commissioner considers relevant.","sortOrder":36},{"sectionNumber":"pt.2-div.4","sectionType":"division","heading":"Royalty returns","content":"## Royalty returns","sortOrder":37},{"sectionNumber":"sec.33","sectionType":"section","heading":"Purpose of division","content":"### sec.33 Purpose of division\n\nFor section 592A of the Act , this division prescribes the requirements for royalty returns lodged under the Act .","sortOrder":38},{"sectionNumber":"sec.34","sectionType":"section","heading":"Lodgement with revenue commissioner","content":"### sec.34 Lodgement with revenue commissioner\n\nA royalty return must be lodged with the revenue commissioner.","sortOrder":39},{"sectionNumber":"sec.35","sectionType":"section","heading":"Form of royalty returns","content":"### sec.35 Form of royalty returns\n\nA royalty return lodged under the Act must be in the approved form.","sortOrder":40},{"sectionNumber":"sec.36","sectionType":"section","heading":"Period to which royalty return must relate","content":"### sec.36 Period to which royalty return must relate\n\nA royalty return required under the Act to be lodged by a petroleum producer must relate to a period of—\nif the petroleum producer holds a petroleum lease or a 1923 Act lease—a calendar quarter; or\notherwise—a financial year.\nHowever, if the revenue commissioner considers it appropriate having regard to the amount of the petroleum royalty likely to be payable by the petroleum producer, the revenue commissioner may decide that—\nfor a petroleum producer to whom subsection (1) (a) applies—a royalty return must relate to a financial year; or\nfor a petroleum producer to whom subsection (1) (b) applies—a royalty return must relate to a calendar quarter.\nA petroleum producer may ask the revenue commissioner to make a decision under subsection (2) (b) .\nIf the revenue commissioner makes a decision under subsection (2) (a) or (b) —\nthe revenue commissioner must give notice of the decision to the petroleum producer required to lodge the return; and\nthe notice must state the day on which the decision is to take effect; and\nfor subsection (2) (b) —the day stated in the notice must not be earlier than the day the revenue commissioner gives the petroleum producer the notice unless the person agrees otherwise.\nThe decision takes effect on the day stated in the notice.\n(sec.36-ssec.1) A royalty return required under the Act to be lodged by a petroleum producer must relate to a period of— if the petroleum producer holds a petroleum lease or a 1923 Act lease—a calendar quarter; or otherwise—a financial year.\n(sec.36-ssec.2) However, if the revenue commissioner considers it appropriate having regard to the amount of the petroleum royalty likely to be payable by the petroleum producer, the revenue commissioner may decide that— for a petroleum producer to whom subsection (1) (a) applies—a royalty return must relate to a financial year; or for a petroleum producer to whom subsection (1) (b) applies—a royalty return must relate to a calendar quarter.\n(sec.36-ssec.3) A petroleum producer may ask the revenue commissioner to make a decision under subsection (2) (b) .\n(sec.36-ssec.4) If the revenue commissioner makes a decision under subsection (2) (a) or (b) — the revenue commissioner must give notice of the decision to the petroleum producer required to lodge the return; and the notice must state the day on which the decision is to take effect; and for subsection (2) (b) —the day stated in the notice must not be earlier than the day the revenue commissioner gives the petroleum producer the notice unless the person agrees otherwise.\n(sec.36-ssec.5) The decision takes effect on the day stated in the notice.\n- (a) if the petroleum producer holds a petroleum lease or a 1923 Act lease—a calendar quarter; or\n- (b) otherwise—a financial year.\n- (a) for a petroleum producer to whom subsection (1) (a) applies—a royalty return must relate to a financial year; or\n- (b) for a petroleum producer to whom subsection (1) (b) applies—a royalty return must relate to a calendar quarter.\n- (a) the revenue commissioner must give notice of the decision to the petroleum producer required to lodge the return; and\n- (b) the notice must state the day on which the decision is to take effect; and\n- (c) for subsection (2) (b) —the day stated in the notice must not be earlier than the day the revenue commissioner gives the petroleum producer the notice unless the person agrees otherwise.","sortOrder":41},{"sectionNumber":"sec.37","sectionType":"section","heading":"When royalty return must be lodged","content":"### sec.37 When royalty return must be lodged\n\nA royalty return required under the Act to be lodged by a petroleum producer that relates to a financial year must be lodged within 3 months after the day the year ends.\nA royalty return required under the Act to be lodged by a petroleum producer that relates to a calendar quarter must be lodged on or before the last business day of the month after the day the quarter ends.\nThis section applies subject to section 38 .\n(sec.37-ssec.1) A royalty return required under the Act to be lodged by a petroleum producer that relates to a financial year must be lodged within 3 months after the day the year ends.\n(sec.37-ssec.2) A royalty return required under the Act to be lodged by a petroleum producer that relates to a calendar quarter must be lodged on or before the last business day of the month after the day the quarter ends.\n(sec.37-ssec.3) This section applies subject to section 38 .","sortOrder":42},{"sectionNumber":"sec.38","sectionType":"section","heading":"Revenue commissioner may require royalty return to be lodged on particular day","content":"### sec.38 Revenue commissioner may require royalty return to be lodged on particular day\n\nThis section applies if the revenue commissioner considers that, for the protection of the public revenue, a royalty return should be lodged on a day that is earlier than the day mentioned in section 37 (1) or (2) .\nThe revenue commissioner may, by notice, require the petroleum producer required to lodge the royalty return to lodge it on a stated day that is at least 7 days after the day the revenue commissioner gives the petroleum producer the notice.\n(sec.38-ssec.1) This section applies if the revenue commissioner considers that, for the protection of the public revenue, a royalty return should be lodged on a day that is earlier than the day mentioned in section 37 (1) or (2) .\n(sec.38-ssec.2) The revenue commissioner may, by notice, require the petroleum producer required to lodge the royalty return to lodge it on a stated day that is at least 7 days after the day the revenue commissioner gives the petroleum producer the notice.","sortOrder":43},{"sectionNumber":"sec.39","sectionType":"section","heading":"Fee for failing to lodge royalty return on time","content":"### sec.39 Fee for failing to lodge royalty return on time\n\nIf a petroleum producer is required to lodge a royalty return and does not lodge the return by the day it is required to be lodged, the petroleum producer must pay the prescribed fee.\nThe prescribed fee is 206.70 fee units.\nFor the Taxation Administration Act 2001 , section 30 (1) (d) , the time by which the prescribed fee is payable is the day the assessment is made of the petroleum royalty payable for the period to which the return relates.\nThe revenue commissioner may remit the whole or part of the fee.\nThe remission must be made by assessment under the Taxation Administration Act 2001 .\nFor working out the amount of the fee expressed in subsection (2) as a number of fee units, for the purpose of the Acts Interpretation Act 1954 , section 48C (3) , the amount is to be rounded down to the nearest multiple of 5 cents.\nSubsection (2) provides for a fee of 206.70 fee units. If the value of a fee unit for this regulation were $1.025, the number of dollars obtained by multiplying $1.025 by 206.70 would be $211.8675. After rounding down, the amount of the fee would be $211.85.\ns 39 amd 2022 SL No. 53 s 12\n(sec.39-ssec.1) If a petroleum producer is required to lodge a royalty return and does not lodge the return by the day it is required to be lodged, the petroleum producer must pay the prescribed fee.\n(sec.39-ssec.2) The prescribed fee is 206.70 fee units.\n(sec.39-ssec.3) For the Taxation Administration Act 2001 , section 30 (1) (d) , the time by which the prescribed fee is payable is the day the assessment is made of the petroleum royalty payable for the period to which the return relates.\n(sec.39-ssec.4) The revenue commissioner may remit the whole or part of the fee.\n(sec.39-ssec.5) The remission must be made by assessment under the Taxation Administration Act 2001 .\n(sec.39-ssec.6) For working out the amount of the fee expressed in subsection (2) as a number of fee units, for the purpose of the Acts Interpretation Act 1954 , section 48C (3) , the amount is to be rounded down to the nearest multiple of 5 cents. Subsection (2) provides for a fee of 206.70 fee units. If the value of a fee unit for this regulation were $1.025, the number of dollars obtained by multiplying $1.025 by 206.70 would be $211.8675. After rounding down, the amount of the fee would be $211.85.","sortOrder":44},{"sectionNumber":"pt.2-div.5","sectionType":"division","heading":"Payment of petroleum royalty","content":"## Payment of petroleum royalty","sortOrder":45},{"sectionNumber":"sec.40","sectionType":"section","heading":"When petroleum royalty payable—yearly return period","content":"### sec.40 When petroleum royalty payable—yearly return period\n\nFor the Taxation Administration Act 2001 , section 30 (1) , the petroleum royalty payable by a petroleum producer under the Act for a royalty return period that is a financial year is payable on the day the royalty return must be lodged for the royalty return period.","sortOrder":46},{"sectionNumber":"sec.41","sectionType":"section","heading":"When petroleum royalty payable—return period that is calendar quarter","content":"### sec.41 When petroleum royalty payable—return period that is calendar quarter\n\nSubject to section 42 , the petroleum royalty payable by a petroleum producer under the Act for a royalty return period that is a calendar quarter is payable as follows—\ninstalment 1 is payable on the last business day of the second month of the royalty return period;\ninstalment 2 is payable on the last business day of the third month of the royalty return period;\nunder the Taxation Administration Act 2001 , section 30 (1) (a) , instalment 3 is payable on the day a royalty return must be lodged for the royalty return period.\nA petroleum producer must lodge an approved form for a payment under subsection (1) when the payment is made.\nIn this section—\ninstalment 1 , for a royalty return period that is a calendar quarter, means—\nthe amount payable by the petroleum producer for the first month of the royalty return period worked out under section 43 ; or\nif an election under section 45 applies for the first month of the royalty return period—the amount payable by the petroleum producer for the first month worked out under section 45 (5) (a) .\ninstalment 2 , for a royalty return period that is a calendar quarter, means—\nthe amount payable by the petroleum producer for the second month of the royalty return period worked out under section 43 ; or\nif an election under section 45 applies for the second month of the royalty return period—the amount payable by the petroleum producer for the second month worked out under section 45 (5) (b) .\ninstalment 3 , for a royalty return period that is a calendar quarter, means—\nif the sum of instalment 1 and instalment 2 for the royalty return period is less than the petroleum royalty payable by the petroleum producer under the Act for the royalty return period (the total royalty )—the amount of the total royalty less the sum; or\notherwise—zero.\n(sec.41-ssec.1) Subject to section 42 , the petroleum royalty payable by a petroleum producer under the Act for a royalty return period that is a calendar quarter is payable as follows— instalment 1 is payable on the last business day of the second month of the royalty return period; instalment 2 is payable on the last business day of the third month of the royalty return period; under the Taxation Administration Act 2001 , section 30 (1) (a) , instalment 3 is payable on the day a royalty return must be lodged for the royalty return period.\n(sec.41-ssec.2) A petroleum producer must lodge an approved form for a payment under subsection (1) when the payment is made.\n(sec.41-ssec.3) In this section— instalment 1 , for a royalty return period that is a calendar quarter, means— the amount payable by the petroleum producer for the first month of the royalty return period worked out under section 43 ; or if an election under section 45 applies for the first month of the royalty return period—the amount payable by the petroleum producer for the first month worked out under section 45 (5) (a) . instalment 2 , for a royalty return period that is a calendar quarter, means— the amount payable by the petroleum producer for the second month of the royalty return period worked out under section 43 ; or if an election under section 45 applies for the second month of the royalty return period—the amount payable by the petroleum producer for the second month worked out under section 45 (5) (b) . instalment 3 , for a royalty return period that is a calendar quarter, means— if the sum of instalment 1 and instalment 2 for the royalty return period is less than the petroleum royalty payable by the petroleum producer under the Act for the royalty return period (the total royalty )—the amount of the total royalty less the sum; or otherwise—zero.\n- (a) instalment 1 is payable on the last business day of the second month of the royalty return period;\n- (b) instalment 2 is payable on the last business day of the third month of the royalty return period;\n- (c) under the Taxation Administration Act 2001 , section 30 (1) (a) , instalment 3 is payable on the day a royalty return must be lodged for the royalty return period.\n- (a) the amount payable by the petroleum producer for the first month of the royalty return period worked out under section 43 ; or\n- (b) if an election under section 45 applies for the first month of the royalty return period—the amount payable by the petroleum producer for the first month worked out under section 45 (5) (a) .\n- (a) the amount payable by the petroleum producer for the second month of the royalty return period worked out under section 43 ; or\n- (b) if an election under section 45 applies for the second month of the royalty return period—the amount payable by the petroleum producer for the second month worked out under section 45 (5) (b) .\n- (a) if the sum of instalment 1 and instalment 2 for the royalty return period is less than the petroleum royalty payable by the petroleum producer under the Act for the royalty return period (the total royalty )—the amount of the total royalty less the sum; or\n- (b) otherwise—zero.","sortOrder":47},{"sectionNumber":"sec.42","sectionType":"section","heading":"Quarterly payment notice","content":"### sec.42 Quarterly payment notice\n\nIf the revenue commissioner considers it appropriate, the revenue commissioner may, by notice (a quarterly payment notice ) given to a petroleum producer, state that the day petroleum royalty is payable by the petroleum producer for a royalty return period that is a calendar quarter is the day the royalty return must be lodged for the period instead of an earlier time under section 41 (1) (a) or (b) .\nA quarterly payment notice given to a petroleum producer must state the period for which the notice applies.\nIf the revenue commissioner considers it appropriate to do so, the revenue commissioner may, by notice, withdraw a quarterly payment notice.\nA withdrawal under subsection (3) takes effect from the start of the next royalty return period after the end of the royalty return period in which the notice of the withdrawal is given.\n(sec.42-ssec.1) If the revenue commissioner considers it appropriate, the revenue commissioner may, by notice (a quarterly payment notice ) given to a petroleum producer, state that the day petroleum royalty is payable by the petroleum producer for a royalty return period that is a calendar quarter is the day the royalty return must be lodged for the period instead of an earlier time under section 41 (1) (a) or (b) .\n(sec.42-ssec.2) A quarterly payment notice given to a petroleum producer must state the period for which the notice applies.\n(sec.42-ssec.3) If the revenue commissioner considers it appropriate to do so, the revenue commissioner may, by notice, withdraw a quarterly payment notice.\n(sec.42-ssec.4) A withdrawal under subsection (3) takes effect from the start of the next royalty return period after the end of the royalty return period in which the notice of the withdrawal is given.","sortOrder":48},{"sectionNumber":"sec.43","sectionType":"section","heading":"Working out monthly payments for return period that is calendar quarter generally","content":"### sec.43 Working out monthly payments for return period that is calendar quarter generally\n\nThis section provides, for section 41 (1) , the amounts payable by a petroleum producer for the first and second months of a royalty return period (the current royalty return period ).\nSee, however, section 45 .\nThe amount payable by the petroleum producer for each of the first and second months of the current royalty return period is a third of the total amount of the petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period—\ntaking into account any assessment under the Taxation Administration Act 2001 , for the petroleum royalty payable for the previous royalty return period, made before the earlier of the following events happens—\nthe amount for the first month of the current royalty return period is paid;\nthe amount for the first month of the current royalty return period becomes payable; and\ndisregarding any assessment under the Taxation Administration Act 2001 , for the petroleum royalty payable for the previous royalty return period, made when, or after, the earlier of the events mentioned in paragraph (a) (i) and (ii) happens.\nThe petroleum royalty paid for the previous royalty return period was $90,000. A reassessment for the previous royalty return period was made by the revenue commissioner under the Taxation Administration Act 2001 to increase the petroleum royalty payable for the previous royalty return period to $120,000. The reassessment was made before the amount payable for the first month of the royalty return period is paid or becomes payable (whichever is the earlier). Accordingly, the amount payable under this section for the first month and second month of the royalty return period is $40,000 (being a third of $120,000).\n(sec.43-ssec.1) This section provides, for section 41 (1) , the amounts payable by a petroleum producer for the first and second months of a royalty return period (the current royalty return period ). See, however, section 45 .\n(sec.43-ssec.2) The amount payable by the petroleum producer for each of the first and second months of the current royalty return period is a third of the total amount of the petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period— taking into account any assessment under the Taxation Administration Act 2001 , for the petroleum royalty payable for the previous royalty return period, made before the earlier of the following events happens— the amount for the first month of the current royalty return period is paid; the amount for the first month of the current royalty return period becomes payable; and disregarding any assessment under the Taxation Administration Act 2001 , for the petroleum royalty payable for the previous royalty return period, made when, or after, the earlier of the events mentioned in paragraph (a) (i) and (ii) happens. The petroleum royalty paid for the previous royalty return period was $90,000. A reassessment for the previous royalty return period was made by the revenue commissioner under the Taxation Administration Act 2001 to increase the petroleum royalty payable for the previous royalty return period to $120,000. The reassessment was made before the amount payable for the first month of the royalty return period is paid or becomes payable (whichever is the earlier). Accordingly, the amount payable under this section for the first month and second month of the royalty return period is $40,000 (being a third of $120,000).\n- (a) taking into account any assessment under the Taxation Administration Act 2001 , for the petroleum royalty payable for the previous royalty return period, made before the earlier of the following events happens— (i) the amount for the first month of the current royalty return period is paid; (ii) the amount for the first month of the current royalty return period becomes payable; and\n- (i) the amount for the first month of the current royalty return period is paid;\n- (ii) the amount for the first month of the current royalty return period becomes payable; and\n- (b) disregarding any assessment under the Taxation Administration Act 2001 , for the petroleum royalty payable for the previous royalty return period, made when, or after, the earlier of the events mentioned in paragraph (a) (i) and (ii) happens. Example— The petroleum royalty paid for the previous royalty return period was $90,000. A reassessment for the previous royalty return period was made by the revenue commissioner under the Taxation Administration Act 2001 to increase the petroleum royalty payable for the previous royalty return period to $120,000. The reassessment was made before the amount payable for the first month of the royalty return period is paid or becomes payable (whichever is the earlier). Accordingly, the amount payable under this section for the first month and second month of the royalty return period is $40,000 (being a third of $120,000).\n- (i) the amount for the first month of the current royalty return period is paid;\n- (ii) the amount for the first month of the current royalty return period becomes payable; and","sortOrder":49},{"sectionNumber":"sec.44","sectionType":"section","heading":"Working out monthly payments for return period that is calendar quarter in particular circumstances","content":"### sec.44 Working out monthly payments for return period that is calendar quarter in particular circumstances\n\nThis section applies if—\nan amount is payable by a petroleum producer under section 43 (2) for the first and second months of a royalty return period (the current royalty return period ); and\neither—\nthe petroleum producer did not lodge a royalty return for the previous royalty return period, as required under the Act ; or\nthe previous royalty return period was not a calendar quarter.\nFor working out the amounts payable by the petroleum producer under section 43 (2) —\nthe revenue commissioner may—\nif subsection (1) (b) (i) applies—estimate the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period; or\nif subsection (1) (b) (ii) applies—adjust the amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period to estimate an amount representative of the petroleum royalty that would have been payable if the previous royalty return period were a calendar quarter; and\nthe revenue commissioner must give the petroleum producer a notice stating the amount (the estimated amount ) estimated by the revenue commissioner under paragraph (a) (i) or (ii) ; and\nthe estimated amount is the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period.\nIn estimating an amount for subsection (2) (a) (i) or (ii) , the revenue commissioner may have regard to—\nany other royalty returns lodged by the petroleum producer; and\nthe volume of petroleum for which the petroleum royalty is payable; and\nany other relevant matter.\n(sec.44-ssec.1) This section applies if— an amount is payable by a petroleum producer under section 43 (2) for the first and second months of a royalty return period (the current royalty return period ); and either— the petroleum producer did not lodge a royalty return for the previous royalty return period, as required under the Act ; or the previous royalty return period was not a calendar quarter.\n(sec.44-ssec.2) For working out the amounts payable by the petroleum producer under section 43 (2) — the revenue commissioner may— if subsection (1) (b) (i) applies—estimate the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period; or if subsection (1) (b) (ii) applies—adjust the amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period to estimate an amount representative of the petroleum royalty that would have been payable if the previous royalty return period were a calendar quarter; and the revenue commissioner must give the petroleum producer a notice stating the amount (the estimated amount ) estimated by the revenue commissioner under paragraph (a) (i) or (ii) ; and the estimated amount is the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period.\n(sec.44-ssec.3) In estimating an amount for subsection (2) (a) (i) or (ii) , the revenue commissioner may have regard to— any other royalty returns lodged by the petroleum producer; and the volume of petroleum for which the petroleum royalty is payable; and any other relevant matter.\n- (a) an amount is payable by a petroleum producer under section 43 (2) for the first and second months of a royalty return period (the current royalty return period ); and\n- (b) either— (i) the petroleum producer did not lodge a royalty return for the previous royalty return period, as required under the Act ; or (ii) the previous royalty return period was not a calendar quarter.\n- (i) the petroleum producer did not lodge a royalty return for the previous royalty return period, as required under the Act ; or\n- (ii) the previous royalty return period was not a calendar quarter.\n- (i) the petroleum producer did not lodge a royalty return for the previous royalty return period, as required under the Act ; or\n- (ii) the previous royalty return period was not a calendar quarter.\n- (a) the revenue commissioner may— (i) if subsection (1) (b) (i) applies—estimate the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period; or (ii) if subsection (1) (b) (ii) applies—adjust the amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period to estimate an amount representative of the petroleum royalty that would have been payable if the previous royalty return period were a calendar quarter; and\n- (i) if subsection (1) (b) (i) applies—estimate the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period; or\n- (ii) if subsection (1) (b) (ii) applies—adjust the amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period to estimate an amount representative of the petroleum royalty that would have been payable if the previous royalty return period were a calendar quarter; and\n- (b) the revenue commissioner must give the petroleum producer a notice stating the amount (the estimated amount ) estimated by the revenue commissioner under paragraph (a) (i) or (ii) ; and\n- (c) the estimated amount is the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period.\n- (i) if subsection (1) (b) (i) applies—estimate the total amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period; or\n- (ii) if subsection (1) (b) (ii) applies—adjust the amount of petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period to estimate an amount representative of the petroleum royalty that would have been payable if the previous royalty return period were a calendar quarter; and\n- (a) any other royalty returns lodged by the petroleum producer; and\n- (b) the volume of petroleum for which the petroleum royalty is payable; and\n- (c) any other relevant matter.","sortOrder":50},{"sectionNumber":"sec.45","sectionType":"section","heading":"Election to change monthly payments for return period that is calendar quarter","content":"### sec.45 Election to change monthly payments for return period that is calendar quarter\n\nThis section applies if, at the relevant time—\na petroleum producer reasonably believes the amount of petroleum royalty payable by the producer under the Act for a royalty return period that is a calendar quarter (the current royalty return period ) will be less than the petroleum royalty payable by the producer under the Act for the previous royalty return period; and\nthe revenue commissioner has not given the petroleum producer a notice under section 46 .\nFor subsection (1) , the petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period is the amount that, under section 43 or 44 , is the petroleum royalty payable by the producer under the Act for the previous royalty return period for section 43 (2) .\nThe petroleum producer may elect to change the amount payable for the first or second months of the current royalty return period.\nThe election must—\nbe in the approved form; and\nstate the amount of petroleum royalty the petroleum producer reasonably believes will be payable by the petroleum producer under the Act for the current royalty return period; and\nunless the revenue commissioner, by notice given to the petroleum producer, approves another day for making the election—be lodged on or before—\nfor an election for the first month of the current royalty return period—the last business day of the second month of the royalty return period; or\nfor an election for the second month of the current royalty return period—the last business day of the third month of the royalty return period.\nSubject to subsection (6) —\nif the petroleum producer makes an election under subsection (3) for the first month of the current royalty return period, the amount payable for that month is a third of the amount mentioned in subsection (4) (b) for the election; or\nif the petroleum producer makes an election under subsection (3) for the second month of the current royalty return period, the amount payable for that month is a third of the amount mentioned in subsection (4) (b) for the election.\nThe amount payable, as changed under subsection (3) for the first or second months of a royalty return period, may be more than the amount payable under subsection (5) (a) or (b) .\nIn this section—\nrelevant time , for an election for the first month or the second month of a royalty return period, means when the amount payable for the month becomes payable under section 41 .\n(sec.45-ssec.1) This section applies if, at the relevant time— a petroleum producer reasonably believes the amount of petroleum royalty payable by the producer under the Act for a royalty return period that is a calendar quarter (the current royalty return period ) will be less than the petroleum royalty payable by the producer under the Act for the previous royalty return period; and the revenue commissioner has not given the petroleum producer a notice under section 46 .\n(sec.45-ssec.2) For subsection (1) , the petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period is the amount that, under section 43 or 44 , is the petroleum royalty payable by the producer under the Act for the previous royalty return period for section 43 (2) .\n(sec.45-ssec.3) The petroleum producer may elect to change the amount payable for the first or second months of the current royalty return period.\n(sec.45-ssec.4) The election must— be in the approved form; and state the amount of petroleum royalty the petroleum producer reasonably believes will be payable by the petroleum producer under the Act for the current royalty return period; and unless the revenue commissioner, by notice given to the petroleum producer, approves another day for making the election—be lodged on or before— for an election for the first month of the current royalty return period—the last business day of the second month of the royalty return period; or for an election for the second month of the current royalty return period—the last business day of the third month of the royalty return period.\n(sec.45-ssec.5) Subject to subsection (6) — if the petroleum producer makes an election under subsection (3) for the first month of the current royalty return period, the amount payable for that month is a third of the amount mentioned in subsection (4) (b) for the election; or if the petroleum producer makes an election under subsection (3) for the second month of the current royalty return period, the amount payable for that month is a third of the amount mentioned in subsection (4) (b) for the election.\n(sec.45-ssec.6) The amount payable, as changed under subsection (3) for the first or second months of a royalty return period, may be more than the amount payable under subsection (5) (a) or (b) .\n(sec.45-ssec.7) In this section— relevant time , for an election for the first month or the second month of a royalty return period, means when the amount payable for the month becomes payable under section 41 .\n- (a) a petroleum producer reasonably believes the amount of petroleum royalty payable by the producer under the Act for a royalty return period that is a calendar quarter (the current royalty return period ) will be less than the petroleum royalty payable by the producer under the Act for the previous royalty return period; and\n- (b) the revenue commissioner has not given the petroleum producer a notice under section 46 .\n- (a) be in the approved form; and\n- (b) state the amount of petroleum royalty the petroleum producer reasonably believes will be payable by the petroleum producer under the Act for the current royalty return period; and\n- (c) unless the revenue commissioner, by notice given to the petroleum producer, approves another day for making the election—be lodged on or before— (i) for an election for the first month of the current royalty return period—the last business day of the second month of the royalty return period; or (ii) for an election for the second month of the current royalty return period—the last business day of the third month of the royalty return period.\n- (i) for an election for the first month of the current royalty return period—the last business day of the second month of the royalty return period; or\n- (ii) for an election for the second month of the current royalty return period—the last business day of the third month of the royalty return period.\n- (i) for an election for the first month of the current royalty return period—the last business day of the second month of the royalty return period; or\n- (ii) for an election for the second month of the current royalty return period—the last business day of the third month of the royalty return period.\n- (a) if the petroleum producer makes an election under subsection (3) for the first month of the current royalty return period, the amount payable for that month is a third of the amount mentioned in subsection (4) (b) for the election; or\n- (b) if the petroleum producer makes an election under subsection (3) for the second month of the current royalty return period, the amount payable for that month is a third of the amount mentioned in subsection (4) (b) for the election.","sortOrder":51},{"sectionNumber":"sec.46","sectionType":"section","heading":"Revenue commissioner may give notice requiring petroleum royalty payable to be worked out under s 43","content":"### sec.46 Revenue commissioner may give notice requiring petroleum royalty payable to be worked out under s 43\n\nThis section applies if—\na petroleum producer has previously made an election under section 45 (3) ; and\nthe revenue commissioner considers the petroleum producer did not have a reasonable basis for forming the belief mentioned in section 45 (1) (a) for the election.\nThe revenue commissioner may give the petroleum producer a notice stating that the amounts payable by the petroleum producer for the first and second months of 1 or more royalty return periods must be worked out under section 43 .\nThe petroleum producer may not make an election under section 45 (3) for a royalty return period to which the notice relates.\n(sec.46-ssec.1) This section applies if— a petroleum producer has previously made an election under section 45 (3) ; and the revenue commissioner considers the petroleum producer did not have a reasonable basis for forming the belief mentioned in section 45 (1) (a) for the election.\n(sec.46-ssec.2) The revenue commissioner may give the petroleum producer a notice stating that the amounts payable by the petroleum producer for the first and second months of 1 or more royalty return periods must be worked out under section 43 .\n(sec.46-ssec.3) The petroleum producer may not make an election under section 45 (3) for a royalty return period to which the notice relates.\n- (a) a petroleum producer has previously made an election under section 45 (3) ; and\n- (b) the revenue commissioner considers the petroleum producer did not have a reasonable basis for forming the belief mentioned in section 45 (1) (a) for the election.","sortOrder":52},{"sectionNumber":"pt.2-div.6","sectionType":"division","heading":"Joint venture tenures","content":"## Joint venture tenures","sortOrder":53},{"sectionNumber":"sec.47","sectionType":"section","heading":"Definitions for division","content":"### sec.47 Definitions for division\n\nIn this division—\namount , of petroleum produced under a joint venture tenure, includes a percentage or proportion of petroleum produced under the tenure.\nelection period , for a joint venture tenure, means the period for which a non-tenure holder is taken to be a petroleum producer, in relation to an amount of petroleum produced under the joint venture tenure, for a royalty provision.\njoint venture tenure see section 48 (1) (b) .\nnon-tenure holder see section 48 (1) (a) .\ntenure holder see section 48 (1) (b) .","sortOrder":54},{"sectionNumber":"sec.48","sectionType":"section","heading":"Non-tenure holder may apply to be treated as petroleum producer for joint venture tenure","content":"### sec.48 Non-tenure holder may apply to be treated as petroleum producer for joint venture tenure\n\nThis section applies if—\na person (the non-tenure holder ) is a participant in a joint venture, or other arrangement, involving the production of petroleum and does not hold a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced; and\nanother person (the tenure holder ) holds a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced (the joint venture tenure ).\nThe non-tenure holder may apply to the revenue commissioner to be taken to be a petroleum producer, in relation to a stated amount of petroleum produced under the joint venture tenure, for a royalty provision.\nThe application must—\nbe in the approved form; and\nidentify the joint venture tenure; and\nstate the proposed amount of petroleum produced under the joint venture tenure for which the non-tenure holder is to be taken to be a petroleum producer for a royalty provision; and\nstate the proposed day for the election period for the joint venture tenure to start; and\nstate either—\nthe proposed day for the election period for the joint venture tenure to end; or\nthat the election period for the joint venture tenure is to end under section 49 ; and\nbe accompanied by the consent to the application of the tenure holder.\nThe revenue commissioner must decide the application by—\ngranting the application in the way proposed; or\ngranting the application in another way, with the written agreement of the non-tenure holder and tenure holder; or\nrefusing to grant the application.\nThe revenue commissioner may grant the application only if the revenue commissioner is satisfied the decision would not adversely affect the protection of the public revenue.\nThe election period must not—\nstart on a day earlier than the first day of the current royalty return period; or\nif a day is stated under subsection (3) (e) (i) —end on a day later than the stated day.\nThe revenue commissioner must give the non-tenure holder and the tenure holder notice of the decision.\nIf the decision is to refuse to grant the application, the notice must include reasons for the decision.\nIf the revenue commissioner decides to grant the application, for the election period for the joint venture tenure—\nthe non-tenure holder is taken to produce the amount of petroleum produced under the joint venture tenure that is decided by the revenue commissioner; and\nthe non-tenure holder is taken to be a petroleum producer, in relation to the amount of petroleum mentioned in paragraph (a) , for a royalty provision; and\nthe non-tenure holder is taken to be a taxpayer under the Taxation Administration Act 2001 in relation to petroleum royalty payable on the amount of petroleum mentioned in paragraph (a) ; and\na provision relating to when a royalty return is required to be lodged is taken to apply to the non-tenure holder as if the non-tenure holder held the joint venture tenure; and\nsections 591 and  591A of the Act are taken to apply, in relation to the amount of petroleum mentioned in paragraph (a) , as if the non-tenure holder held the joint venture tenure.\nThis section does not affect the tenure holder’s liability to pay petroleum royalty on the amount of petroleum mentioned in subsection (9) (a) if the non-tenure holder does not pay the royalty.\nIn this section—\ncurrent royalty return period means the royalty return period applying in relation to the joint venture tenure on the day the application under this section is made.\n(sec.48-ssec.1) This section applies if— a person (the non-tenure holder ) is a participant in a joint venture, or other arrangement, involving the production of petroleum and does not hold a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced; and another person (the tenure holder ) holds a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced (the joint venture tenure ).\n(sec.48-ssec.2) The non-tenure holder may apply to the revenue commissioner to be taken to be a petroleum producer, in relation to a stated amount of petroleum produced under the joint venture tenure, for a royalty provision.\n(sec.48-ssec.3) The application must— be in the approved form; and identify the joint venture tenure; and state the proposed amount of petroleum produced under the joint venture tenure for which the non-tenure holder is to be taken to be a petroleum producer for a royalty provision; and state the proposed day for the election period for the joint venture tenure to start; and state either— the proposed day for the election period for the joint venture tenure to end; or that the election period for the joint venture tenure is to end under section 49 ; and be accompanied by the consent to the application of the tenure holder.\n(sec.48-ssec.4) The revenue commissioner must decide the application by— granting the application in the way proposed; or granting the application in another way, with the written agreement of the non-tenure holder and tenure holder; or refusing to grant the application.\n(sec.48-ssec.5) The revenue commissioner may grant the application only if the revenue commissioner is satisfied the decision would not adversely affect the protection of the public revenue.\n(sec.48-ssec.6) The election period must not— start on a day earlier than the first day of the current royalty return period; or if a day is stated under subsection (3) (e) (i) —end on a day later than the stated day.\n(sec.48-ssec.7) The revenue commissioner must give the non-tenure holder and the tenure holder notice of the decision.\n(sec.48-ssec.8) If the decision is to refuse to grant the application, the notice must include reasons for the decision.\n(sec.48-ssec.9) If the revenue commissioner decides to grant the application, for the election period for the joint venture tenure— the non-tenure holder is taken to produce the amount of petroleum produced under the joint venture tenure that is decided by the revenue commissioner; and the non-tenure holder is taken to be a petroleum producer, in relation to the amount of petroleum mentioned in paragraph (a) , for a royalty provision; and the non-tenure holder is taken to be a taxpayer under the Taxation Administration Act 2001 in relation to petroleum royalty payable on the amount of petroleum mentioned in paragraph (a) ; and a provision relating to when a royalty return is required to be lodged is taken to apply to the non-tenure holder as if the non-tenure holder held the joint venture tenure; and sections 591 and  591A of the Act are taken to apply, in relation to the amount of petroleum mentioned in paragraph (a) , as if the non-tenure holder held the joint venture tenure.\n(sec.48-ssec.10) This section does not affect the tenure holder’s liability to pay petroleum royalty on the amount of petroleum mentioned in subsection (9) (a) if the non-tenure holder does not pay the royalty.\n(sec.48-ssec.11) In this section— current royalty return period means the royalty return period applying in relation to the joint venture tenure on the day the application under this section is made.\n- (a) a person (the non-tenure holder ) is a participant in a joint venture, or other arrangement, involving the production of petroleum and does not hold a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced; and\n- (b) another person (the tenure holder ) holds a petroleum tenure under which the petroleum for the joint venture or other arrangement is produced (the joint venture tenure ).\n- (a) be in the approved form; and\n- (b) identify the joint venture tenure; and\n- (c) state the proposed amount of petroleum produced under the joint venture tenure for which the non-tenure holder is to be taken to be a petroleum producer for a royalty provision; and\n- (d) state the proposed day for the election period for the joint venture tenure to start; and\n- (e) state either— (i) the proposed day for the election period for the joint venture tenure to end; or (ii) that the election period for the joint venture tenure is to end under section 49 ; and\n- (i) the proposed day for the election period for the joint venture tenure to end; or\n- (ii) that the election period for the joint venture tenure is to end under section 49 ; and\n- (f) be accompanied by the consent to the application of the tenure holder.\n- (i) the proposed day for the election period for the joint venture tenure to end; or\n- (ii) that the election period for the joint venture tenure is to end under section 49 ; and\n- (a) granting the application in the way proposed; or\n- (b) granting the application in another way, with the written agreement of the non-tenure holder and tenure holder; or\n- (c) refusing to grant the application.\n- (a) start on a day earlier than the first day of the current royalty return period; or\n- (b) if a day is stated under subsection (3) (e) (i) —end on a day later than the stated day.\n- (a) the non-tenure holder is taken to produce the amount of petroleum produced under the joint venture tenure that is decided by the revenue commissioner; and\n- (b) the non-tenure holder is taken to be a petroleum producer, in relation to the amount of petroleum mentioned in paragraph (a) , for a royalty provision; and\n- (c) the non-tenure holder is taken to be a taxpayer under the Taxation Administration Act 2001 in relation to petroleum royalty payable on the amount of petroleum mentioned in paragraph (a) ; and\n- (d) a provision relating to when a royalty return is required to be lodged is taken to apply to the non-tenure holder as if the non-tenure holder held the joint venture tenure; and\n- (e) sections 591 and  591A of the Act are taken to apply, in relation to the amount of petroleum mentioned in paragraph (a) , as if the non-tenure holder held the joint venture tenure.","sortOrder":55},{"sectionNumber":"sec.49","sectionType":"section","heading":"Ending of election period on application or by revenue commissioner","content":"### sec.49 Ending of election period on application or by revenue commissioner\n\nThis section applies if the revenue commissioner has approved an application in relation to a joint venture tenure under section 48 .\nThe non-tenure holder or tenure holder for the joint venture tenure may apply to the revenue commissioner to end the election period for the joint venture tenure.\nThe application must—\nbe in the approved form; and\nstate the proposed day for the election period for the joint venture tenure to end; and\nif the application is made by the non-tenure holder—be accompanied by evidence that the non-tenure holder has notified the tenure holder of the application; and\nif the application is made by the tenure holder—be accompanied by evidence that the tenure holder has notified the non-tenure holder of the application.\nThe revenue commissioner must decide the application by—\nending the election period on the day proposed; or\nending the election period on another day, with the written agreement of the non-tenure holder and tenure holder; or\nrefusing to end the election period.\nThe revenue commissioner must decide to end the election period if the revenue commissioner is satisfied that ending the election period would not adversely affect the protection of the public revenue.\nThe revenue commissioner may also decide, on the revenue commissioner’s own initiative, to end the election period for the joint venture tenure if the revenue commissioner is satisfied that ending the election period is appropriate for the protection of the public revenue.\nThe day on which the election period ends must not be earlier than the first day of the current royalty return period.\nThe revenue commissioner must give the non-tenure holder and the tenure holder notice of a decision under subsection (4) or (6) .\nIf the decision is under subsection (6) , the notice must include reasons for the decision.\nTo remove any doubt, it is declared that the ending of the election period for the joint venture tenure does not affect a liability arising before the ending of the period.\nIn this section—\ncurrent royalty return period means—\nfor an application under subsection (2) —the royalty return period applying in relation to the joint venture tenure on the day the application is made; or\nfor a decision under subsection (6) —the royalty return period applying in relation to the joint venture tenure on the day the decision is made.\n(sec.49-ssec.1) This section applies if the revenue commissioner has approved an application in relation to a joint venture tenure under section 48 .\n(sec.49-ssec.2) The non-tenure holder or tenure holder for the joint venture tenure may apply to the revenue commissioner to end the election period for the joint venture tenure.\n(sec.49-ssec.3) The application must— be in the approved form; and state the proposed day for the election period for the joint venture tenure to end; and if the application is made by the non-tenure holder—be accompanied by evidence that the non-tenure holder has notified the tenure holder of the application; and if the application is made by the tenure holder—be accompanied by evidence that the tenure holder has notified the non-tenure holder of the application.\n(sec.49-ssec.4) The revenue commissioner must decide the application by— ending the election period on the day proposed; or ending the election period on another day, with the written agreement of the non-tenure holder and tenure holder; or refusing to end the election period.\n(sec.49-ssec.5) The revenue commissioner must decide to end the election period if the revenue commissioner is satisfied that ending the election period would not adversely affect the protection of the public revenue.\n(sec.49-ssec.6) The revenue commissioner may also decide, on the revenue commissioner’s own initiative, to end the election period for the joint venture tenure if the revenue commissioner is satisfied that ending the election period is appropriate for the protection of the public revenue.\n(sec.49-ssec.7) The day on which the election period ends must not be earlier than the first day of the current royalty return period.\n(sec.49-ssec.8) The revenue commissioner must give the non-tenure holder and the tenure holder notice of a decision under subsection (4) or (6) .\n(sec.49-ssec.9) If the decision is under subsection (6) , the notice must include reasons for the decision.\n(sec.49-ssec.10) To remove any doubt, it is declared that the ending of the election period for the joint venture tenure does not affect a liability arising before the ending of the period.\n(sec.49-ssec.11) In this section— current royalty return period means— for an application under subsection (2) —the royalty return period applying in relation to the joint venture tenure on the day the application is made; or for a decision under subsection (6) —the royalty return period applying in relation to the joint venture tenure on the day the decision is made.\n- (a) be in the approved form; and\n- (b) state the proposed day for the election period for the joint venture tenure to end; and\n- (c) if the application is made by the non-tenure holder—be accompanied by evidence that the non-tenure holder has notified the tenure holder of the application; and\n- (d) if the application is made by the tenure holder—be accompanied by evidence that the tenure holder has notified the non-tenure holder of the application.\n- (a) ending the election period on the day proposed; or\n- (b) ending the election period on another day, with the written agreement of the non-tenure holder and tenure holder; or\n- (c) refusing to end the election period.\n- (a) for an application under subsection (2) —the royalty return period applying in relation to the joint venture tenure on the day the application is made; or\n- (b) for a decision under subsection (6) —the royalty return period applying in relation to the joint venture tenure on the day the decision is made.","sortOrder":56},{"sectionNumber":"pt.2-div.7","sectionType":"division","heading":"Royalty estimate","content":"## Royalty estimate","sortOrder":57},{"sectionNumber":"sec.50","sectionType":"section","heading":"Purpose of division","content":"### sec.50 Purpose of division\n\nThis division prescribes for section 593 (2) of the Act the requirements for royalty estimates.","sortOrder":58},{"sectionNumber":"sec.51","sectionType":"section","heading":"What notice must contain","content":"### sec.51 What notice must contain\n\nThe notice given by the revenue commissioner to a petroleum producer under section 593 of the Act (a royalty estimate notice ) must include the following—\nthe period (the estimate period ) for which the petroleum producer is to estimate the royalties payable by the petroleum producer under section 590 of the Act ;\nthe day by which the petroleum producer must provide the royalty estimate;\nthe form in which the petroleum producer must provide the royalty estimate;\na description of the information the petroleum producer must provide in the royalty estimate.\nFor subsection (1) (d) , the information the revenue commissioner may ask a petroleum producer to provide in the royalty estimate includes the following—\na statement of each type of petroleum the producer expects to produce in the estimate period;\nfor each type of petroleum stated under paragraph (a) , an estimate of the following for the estimate period—\nthe volume of petroleum the producer expects to produce;\nthe volume of petroleum the producer expects to be exempt from petroleum royalty under section 591 or 591A of the Act ;\nthe volume of petroleum the producer expects to be subject to the benchmark price for the petroleum;\nthe average sales price for the petroleum for the petroleum producer for the estimate period.\nSubsection (2) does not limit the information the revenue commissioner may ask to be included in the royalty estimate.\nIn this section—\ntype , of petroleum, means—\ndomestic gas; or\nsupply gas; or\nproject gas; or\nliquid petroleum.\n(sec.51-ssec.1) The notice given by the revenue commissioner to a petroleum producer under section 593 of the Act (a royalty estimate notice ) must include the following— the period (the estimate period ) for which the petroleum producer is to estimate the royalties payable by the petroleum producer under section 590 of the Act ; the day by which the petroleum producer must provide the royalty estimate; the form in which the petroleum producer must provide the royalty estimate; a description of the information the petroleum producer must provide in the royalty estimate.\n(sec.51-ssec.2) For subsection (1) (d) , the information the revenue commissioner may ask a petroleum producer to provide in the royalty estimate includes the following— a statement of each type of petroleum the producer expects to produce in the estimate period; for each type of petroleum stated under paragraph (a) , an estimate of the following for the estimate period— the volume of petroleum the producer expects to produce; the volume of petroleum the producer expects to be exempt from petroleum royalty under section 591 or 591A of the Act ; the volume of petroleum the producer expects to be subject to the benchmark price for the petroleum; the average sales price for the petroleum for the petroleum producer for the estimate period.\n(sec.51-ssec.3) Subsection (2) does not limit the information the revenue commissioner may ask to be included in the royalty estimate.\n(sec.51-ssec.4) In this section— type , of petroleum, means— domestic gas; or supply gas; or project gas; or liquid petroleum.\n- (a) the period (the estimate period ) for which the petroleum producer is to estimate the royalties payable by the petroleum producer under section 590 of the Act ;\n- (b) the day by which the petroleum producer must provide the royalty estimate;\n- (c) the form in which the petroleum producer must provide the royalty estimate;\n- (d) a description of the information the petroleum producer must provide in the royalty estimate.\n- (a) a statement of each type of petroleum the producer expects to produce in the estimate period;\n- (b) for each type of petroleum stated under paragraph (a) , an estimate of the following for the estimate period— (i) the volume of petroleum the producer expects to produce; (ii) the volume of petroleum the producer expects to be exempt from petroleum royalty under section 591 or 591A of the Act ; (iii) the volume of petroleum the producer expects to be subject to the benchmark price for the petroleum; (iv) the average sales price for the petroleum for the petroleum producer for the estimate period.\n- (i) the volume of petroleum the producer expects to produce;\n- (ii) the volume of petroleum the producer expects to be exempt from petroleum royalty under section 591 or 591A of the Act ;\n- (iii) the volume of petroleum the producer expects to be subject to the benchmark price for the petroleum;\n- (iv) the average sales price for the petroleum for the petroleum producer for the estimate period.\n- (i) the volume of petroleum the producer expects to produce;\n- (ii) the volume of petroleum the producer expects to be exempt from petroleum royalty under section 591 or 591A of the Act ;\n- (iii) the volume of petroleum the producer expects to be subject to the benchmark price for the petroleum;\n- (iv) the average sales price for the petroleum for the petroleum producer for the estimate period.\n- (a) domestic gas; or\n- (b) supply gas; or\n- (c) project gas; or\n- (d) liquid petroleum.","sortOrder":59},{"sectionNumber":"sec.52","sectionType":"section","heading":"Form of and information to be included in royalty estimate","content":"### sec.52 Form of and information to be included in royalty estimate\n\nThe royalty estimate must—\nbe in the form stated in the royalty estimate notice; and\ninclude the information asked for in the royalty estimate notice.\n- (a) be in the form stated in the royalty estimate notice; and\n- (b) include the information asked for in the royalty estimate notice.","sortOrder":60},{"sectionNumber":"sec.53","sectionType":"section","heading":"Revenue commissioner may request information to support royalty estimate","content":"### sec.53 Revenue commissioner may request information to support royalty estimate\n\nThe revenue commissioner may, by notice to a petroleum producer who has lodged a royalty estimate, ask the petroleum producer to give the revenue commissioner, by the day stated in the notice, information to support the matters stated in the royalty estimate.\nThe revenue commissioner may, by notice to a petroleum producer who must provide a royalty estimate under section 593 (2) of the Act , ask the petroleum producer to give the revenue commissioner, by the day stated in the notice, additional information about the matters that must be included in the royalty estimate.\nIf the revenue commissioner asks a petroleum producer for information under subsection (1) or (2) , the petroleum producer must provide the information by the day stated in the notice.\n(sec.53-ssec.1) The revenue commissioner may, by notice to a petroleum producer who has lodged a royalty estimate, ask the petroleum producer to give the revenue commissioner, by the day stated in the notice, information to support the matters stated in the royalty estimate.\n(sec.53-ssec.2) The revenue commissioner may, by notice to a petroleum producer who must provide a royalty estimate under section 593 (2) of the Act , ask the petroleum producer to give the revenue commissioner, by the day stated in the notice, additional information about the matters that must be included in the royalty estimate.\n(sec.53-ssec.3) If the revenue commissioner asks a petroleum producer for information under subsection (1) or (2) , the petroleum producer must provide the information by the day stated in the notice.","sortOrder":61},{"sectionNumber":"pt.2-div.8","sectionType":"division","heading":"Miscellaneous","content":"## Miscellaneous","sortOrder":62},{"sectionNumber":"sec.54","sectionType":"section","heading":"Application of part to swap arrangements","content":"### sec.54 Application of part to swap arrangements\n\nThe revenue commissioner may make a determination about how this part applies to swap arrangements.\nWithout limiting subsection (1) , for petroleum subject to a swap arrangement, a determination may be made about—\nhow the average sales price for the petroleum is to be worked out for division 3 ; and\nif the petroleum is gas—whether the gas is to be classified as domestic gas, supply gas or project gas.\nThe revenue commissioner must publish a determination made under subsection (1) on the department’s website.\nIn this section—\nswap arrangement means an arrangement entered into between a petroleum producer or a reseller for a petroleum producer and another petroleum producer or a reseller for a petroleum producer, to swap rights or obligations in relation to petroleum produced by the producers to the extent the arrangement relates to exchanging the same volume and quality of petroleum in a particular period.\n(sec.54-ssec.1) The revenue commissioner may make a determination about how this part applies to swap arrangements.\n(sec.54-ssec.2) Without limiting subsection (1) , for petroleum subject to a swap arrangement, a determination may be made about— how the average sales price for the petroleum is to be worked out for division 3 ; and if the petroleum is gas—whether the gas is to be classified as domestic gas, supply gas or project gas.\n(sec.54-ssec.3) The revenue commissioner must publish a determination made under subsection (1) on the department’s website.\n(sec.54-ssec.4) In this section— swap arrangement means an arrangement entered into between a petroleum producer or a reseller for a petroleum producer and another petroleum producer or a reseller for a petroleum producer, to swap rights or obligations in relation to petroleum produced by the producers to the extent the arrangement relates to exchanging the same volume and quality of petroleum in a particular period.\n- (a) how the average sales price for the petroleum is to be worked out for division 3 ; and\n- (b) if the petroleum is gas—whether the gas is to be classified as domestic gas, supply gas or project gas.","sortOrder":63},{"sectionNumber":"sec.55","sectionType":"section","heading":"Imposition of civil penalty— Act , s 594","content":"### sec.55 Imposition of civil penalty— Act , s 594\n\nThis section applies if a petroleum producer makes a section 45 election and either—\nthe petroleum royalty payable for the current royalty return period exceeds the petroleum royalty payable for the previous royalty return period by an amount that is more than 15% of the petroleum royalty payable for the previous royalty return period; or\nboth of the following apply—\nthe petroleum royalty payable for the current royalty return period is less than the petroleum royalty payable for the previous royalty return period;\nthe total of the petroleum royalty payable for the first month and the second month of the current royalty return period is less than 50% of the total petroleum royalty payable for the current royalty return period.\nThe producer is liable to the State for an amount ( civil penalty ) equal to 25% of the default estimate difference, if any, for each month of the current royalty return period for which the producer makes the section 45 election.\nFor subsection (2) , the default estimate difference for a month of the current royalty return period is the difference between—\nthe amount that would have been payable for the month under section 43 if the producer had not made the section 45 election; and\nthe amount payable for the month under the section 45 election.\nHowever, if the amount mentioned in subsection (3) (a) is less than the amount mentioned in subsection (3) (b) , the default estimate difference for the month is taken to be 0.\nSubsection (6) applies if, for petroleum royalty payable for the current royalty return period, an assessment is made under the Taxation Administration Act 2001 .\nFor subsection (1) , the petroleum royalty payable for the current royalty return period is the amount of petroleum royalty payable taking into account the assessment.\nFor subsection (1) , a reference to the petroleum royalty payable for the previous royalty return period is a reference to the amount worked out under section 45 (2) .\nThe revenue commissioner may remit the whole or part of the civil penalty.\nThe remission must be made by assessment.\nIn this section—\ncurrent royalty return period see section 45 (1) (a) .\nsection 45 election means an election under section 45 (3) to change the amount payable for the first month or the second month, or both, of the current royalty return period.\n(sec.55-ssec.1) This section applies if a petroleum producer makes a section 45 election and either— the petroleum royalty payable for the current royalty return period exceeds the petroleum royalty payable for the previous royalty return period by an amount that is more than 15% of the petroleum royalty payable for the previous royalty return period; or both of the following apply— the petroleum royalty payable for the current royalty return period is less than the petroleum royalty payable for the previous royalty return period; the total of the petroleum royalty payable for the first month and the second month of the current royalty return period is less than 50% of the total petroleum royalty payable for the current royalty return period.\n(sec.55-ssec.2) The producer is liable to the State for an amount ( civil penalty ) equal to 25% of the default estimate difference, if any, for each month of the current royalty return period for which the producer makes the section 45 election.\n(sec.55-ssec.3) For subsection (2) , the default estimate difference for a month of the current royalty return period is the difference between— the amount that would have been payable for the month under section 43 if the producer had not made the section 45 election; and the amount payable for the month under the section 45 election.\n(sec.55-ssec.4) However, if the amount mentioned in subsection (3) (a) is less than the amount mentioned in subsection (3) (b) , the default estimate difference for the month is taken to be 0.\n(sec.55-ssec.5) Subsection (6) applies if, for petroleum royalty payable for the current royalty return period, an assessment is made under the Taxation Administration Act 2001 .\n(sec.55-ssec.6) For subsection (1) , the petroleum royalty payable for the current royalty return period is the amount of petroleum royalty payable taking into account the assessment.\n(sec.55-ssec.7) For subsection (1) , a reference to the petroleum royalty payable for the previous royalty return period is a reference to the amount worked out under section 45 (2) .\n(sec.55-ssec.8) The revenue commissioner may remit the whole or part of the civil penalty.\n(sec.55-ssec.9) The remission must be made by assessment.\n(sec.55-ssec.10) In this section— current royalty return period see section 45 (1) (a) . section 45 election means an election under section 45 (3) to change the amount payable for the first month or the second month, or both, of the current royalty return period.\n- (a) the petroleum royalty payable for the current royalty return period exceeds the petroleum royalty payable for the previous royalty return period by an amount that is more than 15% of the petroleum royalty payable for the previous royalty return period; or\n- (b) both of the following apply— (i) the petroleum royalty payable for the current royalty return period is less than the petroleum royalty payable for the previous royalty return period; (ii) the total of the petroleum royalty payable for the first month and the second month of the current royalty return period is less than 50% of the total petroleum royalty payable for the current royalty return period.\n- (i) the petroleum royalty payable for the current royalty return period is less than the petroleum royalty payable for the previous royalty return period;\n- (ii) the total of the petroleum royalty payable for the first month and the second month of the current royalty return period is less than 50% of the total petroleum royalty payable for the current royalty return period.\n- (i) the petroleum royalty payable for the current royalty return period is less than the petroleum royalty payable for the previous royalty return period;\n- (ii) the total of the petroleum royalty payable for the first month and the second month of the current royalty return period is less than 50% of the total petroleum royalty payable for the current royalty return period.\n- (a) the amount that would have been payable for the month under section 43 if the producer had not made the section 45 election; and\n- (b) the amount payable for the month under the section 45 election.","sortOrder":64},{"sectionNumber":"sec.56","sectionType":"section","heading":"Unpaid tax interest on petroleum royalty— Taxation Administration Act 2001 , s 54","content":"### sec.56 Unpaid tax interest on petroleum royalty— Taxation Administration Act 2001 , s 54\n\nFor the Taxation Administration Act 2001 , section 54 (9) , this section provides for working out the period for which unpaid tax interest accrues if—\npetroleum royalty is payable by a person under section 41 (1) for a royalty return period that is a calendar quarter; and\nthe person has not paid all of the amount payable for instalment 1, instalment 2 or instalment 3 as required under section 41 .\nIf instalment 1 or instalment 2 is not paid in full by the day required under section 41 , unpaid tax interest accrues on the amount unpaid, from time to time, for the period—\nstarting on, and including, the day after the day the instalment is required to be paid; and\nending on, and including, the earlier of the following days—\nthe day the instalment is paid in full;\nthe lodgement day.\nIf the petroleum royalty payable for the royalty return period is not paid in full on the lodgement day, unpaid tax interest accrues on the total amount unpaid, from time to time, for the period—\nstarting on, and including, the day after the lodgement day; and\nending on, and including, the day the total amount is paid in full.\nIn this section—\nlodgement day means the day a petroleum royalty return must be lodged for a royalty return period, disregarding any extension given under the Taxation Administration Act 2001 , section 151 .\n(sec.56-ssec.1) For the Taxation Administration Act 2001 , section 54 (9) , this section provides for working out the period for which unpaid tax interest accrues if— petroleum royalty is payable by a person under section 41 (1) for a royalty return period that is a calendar quarter; and the person has not paid all of the amount payable for instalment 1, instalment 2 or instalment 3 as required under section 41 .\n(sec.56-ssec.2) If instalment 1 or instalment 2 is not paid in full by the day required under section 41 , unpaid tax interest accrues on the amount unpaid, from time to time, for the period— starting on, and including, the day after the day the instalment is required to be paid; and ending on, and including, the earlier of the following days— the day the instalment is paid in full; the lodgement day.\n(sec.56-ssec.3) If the petroleum royalty payable for the royalty return period is not paid in full on the lodgement day, unpaid tax interest accrues on the total amount unpaid, from time to time, for the period— starting on, and including, the day after the lodgement day; and ending on, and including, the day the total amount is paid in full.\n(sec.56-ssec.4) In this section— lodgement day means the day a petroleum royalty return must be lodged for a royalty return period, disregarding any extension given under the Taxation Administration Act 2001 , section 151 .\n- (a) petroleum royalty is payable by a person under section 41 (1) for a royalty return period that is a calendar quarter; and\n- (b) the person has not paid all of the amount payable for instalment 1, instalment 2 or instalment 3 as required under section 41 .\n- (a) starting on, and including, the day after the day the instalment is required to be paid; and\n- (b) ending on, and including, the earlier of the following days— (i) the day the instalment is paid in full; (ii) the lodgement day.\n- (i) the day the instalment is paid in full;\n- (ii) the lodgement day.\n- (i) the day the instalment is paid in full;\n- (ii) the lodgement day.\n- (a) starting on, and including, the day after the lodgement day; and\n- (b) ending on, and including, the day the total amount is paid in full.","sortOrder":65},{"sectionNumber":"pt.3","sectionType":"part","heading":"Transitional provisions","content":"# Transitional provisions","sortOrder":66},{"sectionNumber":"sec.57","sectionType":"section","heading":"Definitions for part","content":"### sec.57 Definitions for part\n\nIn this part—\ncorresponding provision , for a provision of the expired regulation, means a provision of this regulation that provides for the same, or substantially the same, matter as the provision of the expired regulation.\nexpired regulation means the expired Petroleum and Gas (Royalty) Regulation 2004 as in force from time to time before the commencement.","sortOrder":67},{"sectionNumber":"sec.58","sectionType":"section","heading":"Existing notice of revenue commissioner","content":"### sec.58 Existing notice of revenue commissioner\n\nA notice given by the revenue commissioner about a decision, determination or another matter, under a provision of the expired regulation, is taken to be a notice given by the revenue commissioner about the decision, determination or other matter under the corresponding provision of this regulation.\nIn this section—\ndecision includes an amendment or revocation of a decision.\ndetermination includes an amendment or revocation of a determination.\n(sec.58-ssec.1) A notice given by the revenue commissioner about a decision, determination or another matter, under a provision of the expired regulation, is taken to be a notice given by the revenue commissioner about the decision, determination or other matter under the corresponding provision of this regulation.\n(sec.58-ssec.2) In this section— decision includes an amendment or revocation of a decision. determination includes an amendment or revocation of a determination.","sortOrder":68},{"sectionNumber":"sec.59","sectionType":"section","heading":"Existing determination of revenue commissioner that petroleum venture is LNG project","content":"### sec.59 Existing determination of revenue commissioner that petroleum venture is LNG project\n\nThis section applies to a determination made by the revenue commissioner under section 139 of the expired regulation that was in effect immediately before the commencement.\nThe determination is taken to be a determination made by the revenue commissioner under section 10.\nIn this section—\ndetermination includes an amendment or revocation of a determination.\n(sec.59-ssec.1) This section applies to a determination made by the revenue commissioner under section 139 of the expired regulation that was in effect immediately before the commencement.\n(sec.59-ssec.2) The determination is taken to be a determination made by the revenue commissioner under section 10.\n(sec.59-ssec.3) In this section— determination includes an amendment or revocation of a determination.","sortOrder":69},{"sectionNumber":"sec.60","sectionType":"section","heading":"Liability to notify status as member of LNG project under section 141 of expired regulation","content":"### sec.60 Liability to notify status as member of LNG project under section 141 of expired regulation\n\nThis section applies if—\nbefore the commencement, a person was required to give a notice under section 141 of the expired regulation; and\nimmediately before the commencement, the liability to give the notice was still in effect.\nDespite the expiry of section 141 of the expired regulation—\nthe liability to give the notice continues under the expired regulation as if the expired regulation had not expired; and\nthe person may be prosecuted for an offence against section 141(2) of the expired regulation as if the expired regulation had not expired.\n(sec.60-ssec.1) This section applies if— before the commencement, a person was required to give a notice under section 141 of the expired regulation; and immediately before the commencement, the liability to give the notice was still in effect.\n(sec.60-ssec.2) Despite the expiry of section 141 of the expired regulation— the liability to give the notice continues under the expired regulation as if the expired regulation had not expired; and the person may be prosecuted for an offence against section 141(2) of the expired regulation as if the expired regulation had not expired.\n- (a) before the commencement, a person was required to give a notice under section 141 of the expired regulation; and\n- (b) immediately before the commencement, the liability to give the notice was still in effect.\n- (a) the liability to give the notice continues under the expired regulation as if the expired regulation had not expired; and\n- (b) the person may be prosecuted for an offence against section 141(2) of the expired regulation as if the expired regulation had not expired.","sortOrder":70},{"sectionNumber":"sec.61","sectionType":"section","heading":"Existing notification of status when petroleum producer, or reseller for producer, sells to member of LNG project","content":"### sec.61 Existing notification of status when petroleum producer, or reseller for producer, sells to member of LNG project\n\nThis section applies to a notice given by a person under section 141(2) of the expired regulation that was in effect immediately before the commencement.\nThe notice is taken to be a notice given by the person under section 12(2).\n(sec.61-ssec.1) This section applies to a notice given by a person under section 141(2) of the expired regulation that was in effect immediately before the commencement.\n(sec.61-ssec.2) The notice is taken to be a notice given by the person under section 12(2).","sortOrder":71},{"sectionNumber":"sec.62","sectionType":"section","heading":"Liability to notify revenue commissioner under section 142 of expired regulation","content":"### sec.62 Liability to notify revenue commissioner under section 142 of expired regulation\n\nThis section applies if—\nbefore the commencement, a person was required to give the revenue commissioner a notice under section 142(2) or (4) of the expired regulation; and\nimmediately before the commencement, the liability to give the notice was still in effect.\nDespite the expiry of section 142 of the expired regulation—\nthe liability to give the notice continues under the expired regulation as if the expired regulation had not expired; and\nthe person may be prosecuted for an offence against section 142(2) or (4) of the expired regulation as if the expired regulation had not expired.\n(sec.62-ssec.1) This section applies if— before the commencement, a person was required to give the revenue commissioner a notice under section 142(2) or (4) of the expired regulation; and immediately before the commencement, the liability to give the notice was still in effect.\n(sec.62-ssec.2) Despite the expiry of section 142 of the expired regulation— the liability to give the notice continues under the expired regulation as if the expired regulation had not expired; and the person may be prosecuted for an offence against section 142(2) or (4) of the expired regulation as if the expired regulation had not expired.\n- (a) before the commencement, a person was required to give the revenue commissioner a notice under section 142(2) or (4) of the expired regulation; and\n- (b) immediately before the commencement, the liability to give the notice was still in effect.\n- (a) the liability to give the notice continues under the expired regulation as if the expired regulation had not expired; and\n- (b) the person may be prosecuted for an offence against section 142(2) or (4) of the expired regulation as if the expired regulation had not expired.","sortOrder":72},{"sectionNumber":"sec.63","sectionType":"section","heading":"Royalty return period starting before commencement","content":"### sec.63 Royalty return period starting before commencement\n\nA reference in this regulation to a royalty return period includes a reference to a period, starting before the commencement of this section, that was a royalty return period under the expired regulation.","sortOrder":73},{"sectionNumber":"sec.64","sectionType":"section","heading":"Existing election by petroleum producer of domestic gas for benchmark price to apply","content":"### sec.64 Existing election by petroleum producer of domestic gas for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an election under section 147(3) of the expired regulation for section 147(2) of the expired regulation to apply; and\nimmediately before the commencement, the election had not ended.\nThe election is taken to be an election made by the petroleum producer under section 18(3).\n(sec.64-ssec.1) This section applies if— a petroleum producer made an election under section 147(3) of the expired regulation for section 147(2) of the expired regulation to apply; and immediately before the commencement, the election had not ended.\n(sec.64-ssec.2) The election is taken to be an election made by the petroleum producer under section 18(3).\n- (a) a petroleum producer made an election under section 147(3) of the expired regulation for section 147(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the election had not ended.","sortOrder":74},{"sectionNumber":"sec.65","sectionType":"section","heading":"Existing decision by revenue commissioner for benchmark price to apply—domestic gas","content":"### sec.65 Existing decision by revenue commissioner for benchmark price to apply—domestic gas\n\nThis section applies if—\nthe revenue commissioner made a decision under section 147(1)(d) of the expired regulation for section 147(2) of the expired regulation to apply; and\nimmediately before the commencement, the decision was in effect.\nThe decision is taken to be a decision made by the revenue commissioner under section 18(1)(d).\n(sec.65-ssec.1) This section applies if— the revenue commissioner made a decision under section 147(1)(d) of the expired regulation for section 147(2) of the expired regulation to apply; and immediately before the commencement, the decision was in effect.\n(sec.65-ssec.2) The decision is taken to be a decision made by the revenue commissioner under section 18(1)(d).\n- (a) the revenue commissioner made a decision under section 147(1)(d) of the expired regulation for section 147(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the decision was in effect.","sortOrder":75},{"sectionNumber":"sec.66","sectionType":"section","heading":"Undecided application by petroleum producer of domestic gas to end election for benchmark price to apply","content":"### sec.66 Undecided application by petroleum producer of domestic gas to end election for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an application under section 147(5) of the expired regulation to end an election made under section 147(3) of the expired regulation; and\nimmediately before the commencement, the application had not been decided.\nThe application is taken to have been made under section 18(5).\nIf the revenue commissioner decides to end the election under section 18(6), the day stated in the notice under section 18(8) may be a day before the commencement.\n(sec.66-ssec.1) This section applies if— a petroleum producer made an application under section 147(5) of the expired regulation to end an election made under section 147(3) of the expired regulation; and immediately before the commencement, the application had not been decided.\n(sec.66-ssec.2) The application is taken to have been made under section 18(5).\n(sec.66-ssec.3) If the revenue commissioner decides to end the election under section 18(6), the day stated in the notice under section 18(8) may be a day before the commencement.\n- (a) a petroleum producer made an application under section 147(5) of the expired regulation to end an election made under section 147(3) of the expired regulation; and\n- (b) immediately before the commencement, the application had not been decided.","sortOrder":76},{"sectionNumber":"sec.67","sectionType":"section","heading":"Decision to end election for benchmark price to apply—domestic gas","content":"### sec.67 Decision to end election for benchmark price to apply—domestic gas\n\nThis section applies if the revenue commissioner decides to end an election under section 18(6).\nThe day stated in the notice under section 18(8) may be a day before the commencement.\n(sec.67-ssec.1) This section applies if the revenue commissioner decides to end an election under section 18(6).\n(sec.67-ssec.2) The day stated in the notice under section 18(8) may be a day before the commencement.","sortOrder":77},{"sectionNumber":"sec.68","sectionType":"section","heading":"Existing election by petroleum producer of supply gas for benchmark price to apply","content":"### sec.68 Existing election by petroleum producer of supply gas for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an election under section 148D(3) of the expired regulation for section 148D(2) of the expired regulation to apply; and\nimmediately before the commencement, the election had not ended.\nThe election is taken to be an election made by the petroleum producer under section 23(3).\n(sec.68-ssec.1) This section applies if— a petroleum producer made an election under section 148D(3) of the expired regulation for section 148D(2) of the expired regulation to apply; and immediately before the commencement, the election had not ended.\n(sec.68-ssec.2) The election is taken to be an election made by the petroleum producer under section 23(3).\n- (a) a petroleum producer made an election under section 148D(3) of the expired regulation for section 148D(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the election had not ended.","sortOrder":78},{"sectionNumber":"sec.69","sectionType":"section","heading":"Existing decision by revenue commissioner for benchmark price to apply—supply gas","content":"### sec.69 Existing decision by revenue commissioner for benchmark price to apply—supply gas\n\nThis section applies if—\nthe revenue commissioner made a decision under section 148D(1)(d) of the expired regulation for section 148D(2) of the expired regulation to apply; and\nimmediately before the commencement, the decision was in effect.\nThe decision is taken to be a decision made by the revenue commissioner under section 23(1)(d).\n(sec.69-ssec.1) This section applies if— the revenue commissioner made a decision under section 148D(1)(d) of the expired regulation for section 148D(2) of the expired regulation to apply; and immediately before the commencement, the decision was in effect.\n(sec.69-ssec.2) The decision is taken to be a decision made by the revenue commissioner under section 23(1)(d).\n- (a) the revenue commissioner made a decision under section 148D(1)(d) of the expired regulation for section 148D(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the decision was in effect.","sortOrder":79},{"sectionNumber":"sec.70","sectionType":"section","heading":"Undecided application by petroleum producer of supply gas to end election for benchmark price to apply","content":"### sec.70 Undecided application by petroleum producer of supply gas to end election for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an application under section 148D(5) of the expired regulation to end an election made under section 148D(3) of the expired regulation; and\nimmediately before the commencement, the application had not been decided.\nThe application is taken to have been made under section 23(5).\nIf the revenue commissioner decides to end the election under section 23(6), the day stated in the notice under section 23(8) may be a day before the commencement.\n(sec.70-ssec.1) This section applies if— a petroleum producer made an application under section 148D(5) of the expired regulation to end an election made under section 148D(3) of the expired regulation; and immediately before the commencement, the application had not been decided.\n(sec.70-ssec.2) The application is taken to have been made under section 23(5).\n(sec.70-ssec.3) If the revenue commissioner decides to end the election under section 23(6), the day stated in the notice under section 23(8) may be a day before the commencement.\n- (a) a petroleum producer made an application under section 148D(5) of the expired regulation to end an election made under section 148D(3) of the expired regulation; and\n- (b) immediately before the commencement, the application had not been decided.","sortOrder":80},{"sectionNumber":"sec.71","sectionType":"section","heading":"Decision to end election for benchmark price to apply—supply gas","content":"### sec.71 Decision to end election for benchmark price to apply—supply gas\n\nThis section applies if the revenue commissioner decides to end an election under section 23(6).\nThe day stated in the notice under section 23(8) may be a day before the commencement.\n(sec.71-ssec.1) This section applies if the revenue commissioner decides to end an election under section 23(6).\n(sec.71-ssec.2) The day stated in the notice under section 23(8) may be a day before the commencement.","sortOrder":81},{"sectionNumber":"sec.72","sectionType":"section","heading":"Existing election by petroleum producer of project gas for benchmark price to apply","content":"### sec.72 Existing election by petroleum producer of project gas for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an election under section 148I(3) of the expired regulation for section 148I(2) of the expired regulation to apply; and\nimmediately before the commencement, the election had not ended.\nThe election is taken to be an election made by the petroleum producer under section 28(3).\n(sec.72-ssec.1) This section applies if— a petroleum producer made an election under section 148I(3) of the expired regulation for section 148I(2) of the expired regulation to apply; and immediately before the commencement, the election had not ended.\n(sec.72-ssec.2) The election is taken to be an election made by the petroleum producer under section 28(3).\n- (a) a petroleum producer made an election under section 148I(3) of the expired regulation for section 148I(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the election had not ended.","sortOrder":82},{"sectionNumber":"sec.73","sectionType":"section","heading":"Existing decision by revenue commissioner for benchmark price to apply—project gas","content":"### sec.73 Existing decision by revenue commissioner for benchmark price to apply—project gas\n\nThis section applies if—\nthe revenue commissioner made a decision under section 148I(1)(d) of the expired regulation for section 148I(2) of the expired regulation to apply; and\nimmediately before the commencement, the decision was in effect.\nThe decision is taken to be a decision made by the revenue commissioner under section 28(1)(d).\n(sec.73-ssec.1) This section applies if— the revenue commissioner made a decision under section 148I(1)(d) of the expired regulation for section 148I(2) of the expired regulation to apply; and immediately before the commencement, the decision was in effect.\n(sec.73-ssec.2) The decision is taken to be a decision made by the revenue commissioner under section 28(1)(d).\n- (a) the revenue commissioner made a decision under section 148I(1)(d) of the expired regulation for section 148I(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the decision was in effect.","sortOrder":83},{"sectionNumber":"sec.74","sectionType":"section","heading":"Undecided application by petroleum producer of project gas to end election for benchmark price to apply","content":"### sec.74 Undecided application by petroleum producer of project gas to end election for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an application under section 148I(5) of the expired regulation to end an election made under section 148I(3) of the expired regulation; and\nimmediately before the commencement, the application had not been decided.\nThe application is taken to have been made under section 28(5).\nIf the revenue commissioner decides to end the election under section 28(6), the day stated in the notice under section 28(8) may be a day before the commencement.\n(sec.74-ssec.1) This section applies if— a petroleum producer made an application under section 148I(5) of the expired regulation to end an election made under section 148I(3) of the expired regulation; and immediately before the commencement, the application had not been decided.\n(sec.74-ssec.2) The application is taken to have been made under section 28(5).\n(sec.74-ssec.3) If the revenue commissioner decides to end the election under section 28(6), the day stated in the notice under section 28(8) may be a day before the commencement.\n- (a) a petroleum producer made an application under section 148I(5) of the expired regulation to end an election made under section 148I(3) of the expired regulation; and\n- (b) immediately before the commencement, the application had not been decided.","sortOrder":84},{"sectionNumber":"sec.75","sectionType":"section","heading":"Decision to end election for benchmark price to apply—project gas","content":"### sec.75 Decision to end election for benchmark price to apply—project gas\n\nThis section applies if the revenue commissioner decides to end an election under section 28(6).\nThe day stated in the notice under section 28(8) may be a day before the commencement.\n(sec.75-ssec.1) This section applies if the revenue commissioner decides to end an election under section 28(6).\n(sec.75-ssec.2) The day stated in the notice under section 28(8) may be a day before the commencement.","sortOrder":85},{"sectionNumber":"sec.76","sectionType":"section","heading":"Existing election by petroleum producer of liquid petroleum for benchmark price to apply","content":"### sec.76 Existing election by petroleum producer of liquid petroleum for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an election under section 148M(3) of the expired regulation for section 148M(2) of the expired regulation to apply; and\nimmediately before the commencement, the election had not ended.\nThe election is taken to be an election made by the petroleum producer under section 32(3).\n(sec.76-ssec.1) This section applies if— a petroleum producer made an election under section 148M(3) of the expired regulation for section 148M(2) of the expired regulation to apply; and immediately before the commencement, the election had not ended.\n(sec.76-ssec.2) The election is taken to be an election made by the petroleum producer under section 32(3).\n- (a) a petroleum producer made an election under section 148M(3) of the expired regulation for section 148M(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the election had not ended.","sortOrder":86},{"sectionNumber":"sec.77","sectionType":"section","heading":"Existing decision by revenue commissioner for benchmark price to apply—liquid petroleum","content":"### sec.77 Existing decision by revenue commissioner for benchmark price to apply—liquid petroleum\n\nThis section applies if—\nthe revenue commissioner made a decision under section 148M(1)(d) of the expired regulation for section 148M(2) of the expired regulation to apply; and\nimmediately before the commencement, the decision was in effect.\nThe decision is taken to be a decision made by the revenue commissioner under section 32(1)(d).\n(sec.77-ssec.1) This section applies if— the revenue commissioner made a decision under section 148M(1)(d) of the expired regulation for section 148M(2) of the expired regulation to apply; and immediately before the commencement, the decision was in effect.\n(sec.77-ssec.2) The decision is taken to be a decision made by the revenue commissioner under section 32(1)(d).\n- (a) the revenue commissioner made a decision under section 148M(1)(d) of the expired regulation for section 148M(2) of the expired regulation to apply; and\n- (b) immediately before the commencement, the decision was in effect.","sortOrder":87},{"sectionNumber":"sec.78","sectionType":"section","heading":"Undecided application by petroleum producer of liquid petroleum to end election for benchmark price to apply","content":"### sec.78 Undecided application by petroleum producer of liquid petroleum to end election for benchmark price to apply\n\nThis section applies if—\na petroleum producer made an application under section 148M(5) of the expired regulation to end an election made under section 148M(3) of the expired regulation; and\nimmediately before the commencement, the application had not been decided.\nThe application is taken to have been made under section 32(5).\nIf the revenue commissioner decides to end the election under section 32(6), the day stated in the notice under section 32(8) may be a day before the commencement.\n(sec.78-ssec.1) This section applies if— a petroleum producer made an application under section 148M(5) of the expired regulation to end an election made under section 148M(3) of the expired regulation; and immediately before the commencement, the application had not been decided.\n(sec.78-ssec.2) The application is taken to have been made under section 32(5).\n(sec.78-ssec.3) If the revenue commissioner decides to end the election under section 32(6), the day stated in the notice under section 32(8) may be a day before the commencement.\n- (a) a petroleum producer made an application under section 148M(5) of the expired regulation to end an election made under section 148M(3) of the expired regulation; and\n- (b) immediately before the commencement, the application had not been decided.","sortOrder":88},{"sectionNumber":"sec.79","sectionType":"section","heading":"Decision to end election for benchmark price to apply—liquid petroleum","content":"### sec.79 Decision to end election for benchmark price to apply—liquid petroleum\n\nThis section applies if the revenue commissioner decides to end an election under section 32(6).\nThe day stated in the notice under section 32(8) may be a day before the commencement.\n(sec.79-ssec.1) This section applies if the revenue commissioner decides to end an election under section 32(6).\n(sec.79-ssec.2) The day stated in the notice under section 32(8) may be a day before the commencement.","sortOrder":89},{"sectionNumber":"sec.80","sectionType":"section","heading":"Period to which royalty return must relate—calendar quarter or financial year starting on 1 July 2021","content":"### sec.80 Period to which royalty return must relate—calendar quarter or financial year starting on 1 July 2021\n\nThis section applies if a royalty return required under the Act to be lodged by a petroleum producer was required under section 148Q of the expired regulation to relate to a period of the calendar quarter starting on 1 July 2021 or the financial year starting on 1 July 2021.\nThe requirement is taken to be a requirement imposed under section 36.\nIf the royalty return relates to the financial year starting on 1 July 2021—\nthe royalty return must be lodged under section 37(1); and\nthe royalty return is not required to be lodged under section 148R(1) of the expired regulation.\nIf the royalty return relates to the calender quarter starting on 1 July 2021—\nthe royalty return must be lodged under section 37(2); and\nthe royalty return is not required to be lodged under section 148R(2) of the expired regulation.\n(sec.80-ssec.1) This section applies if a royalty return required under the Act to be lodged by a petroleum producer was required under section 148Q of the expired regulation to relate to a period of the calendar quarter starting on 1 July 2021 or the financial year starting on 1 July 2021.\n(sec.80-ssec.2) The requirement is taken to be a requirement imposed under section 36.\n(sec.80-ssec.3) If the royalty return relates to the financial year starting on 1 July 2021— the royalty return must be lodged under section 37(1); and the royalty return is not required to be lodged under section 148R(1) of the expired regulation.\n(sec.80-ssec.4) If the royalty return relates to the calender quarter starting on 1 July 2021— the royalty return must be lodged under section 37(2); and the royalty return is not required to be lodged under section 148R(2) of the expired regulation.\n- (a) the royalty return must be lodged under section 37(1); and\n- (b) the royalty return is not required to be lodged under section 148R(1) of the expired regulation.\n- (a) the royalty return must be lodged under section 37(2); and\n- (b) the royalty return is not required to be lodged under section 148R(2) of the expired regulation.","sortOrder":90},{"sectionNumber":"sec.81","sectionType":"section","heading":"Undecided request about period to which royalty return must relate","content":"### sec.81 Undecided request about period to which royalty return must relate\n\nThis section applies if—\na petroleum producer asked the revenue commissioner, under section 148Q(3) of the expired regulation, to make a decision under section 148Q(2)(b) of the expired regulation; and\nimmediately before the commencement, the revenue commissioner had not made a decision under section 148Q(2)(b) of the expired regulation.\nThe petroleum producer is taken to have asked the revenue commissioner, under section 36(3), to make a decision under section 36(2)(b).\nIf the revenue commissioner makes a decision under section 36(2)(b), the day stated in the notice under section 36(4)(c) may be a day before the commencement.\n(sec.81-ssec.1) This section applies if— a petroleum producer asked the revenue commissioner, under section 148Q(3) of the expired regulation, to make a decision under section 148Q(2)(b) of the expired regulation; and immediately before the commencement, the revenue commissioner had not made a decision under section 148Q(2)(b) of the expired regulation.\n(sec.81-ssec.2) The petroleum producer is taken to have asked the revenue commissioner, under section 36(3), to make a decision under section 36(2)(b).\n(sec.81-ssec.3) If the revenue commissioner makes a decision under section 36(2)(b), the day stated in the notice under section 36(4)(c) may be a day before the commencement.\n- (a) a petroleum producer asked the revenue commissioner, under section 148Q(3) of the expired regulation, to make a decision under section 148Q(2)(b) of the expired regulation; and\n- (b) immediately before the commencement, the revenue commissioner had not made a decision under section 148Q(2)(b) of the expired regulation.","sortOrder":91},{"sectionNumber":"sec.82","sectionType":"section","heading":"Existing decision of revenue commissioner about period to which royalty return must relate","content":"### sec.82 Existing decision of revenue commissioner about period to which royalty return must relate\n\nThis section applies to a decision made by the revenue commissioner under section 148Q(2)(a) or (b) of the expired regulation that was in effect immediately before the commencement.\nThe decision is taken to be a decision made by the revenue commissioner under section 36(2)(a) or (b).\n(sec.82-ssec.1) This section applies to a decision made by the revenue commissioner under section 148Q(2)(a) or (b) of the expired regulation that was in effect immediately before the commencement.\n(sec.82-ssec.2) The decision is taken to be a decision made by the revenue commissioner under section 36(2)(a) or (b).","sortOrder":92},{"sectionNumber":"sec.83","sectionType":"section","heading":"Decision of revenue commissioner about period to which royalty return must relate","content":"### sec.83 Decision of revenue commissioner about period to which royalty return must relate\n\nThis section applies if the revenue commissioner makes a decision under section 36(2)(a) or (b).\nThe day stated in the notice under section 36(4)(c) may be a day before the commencement.\n(sec.83-ssec.1) This section applies if the revenue commissioner makes a decision under section 36(2)(a) or (b).\n(sec.83-ssec.2) The day stated in the notice under section 36(4)(c) may be a day before the commencement.","sortOrder":93},{"sectionNumber":"sec.84","sectionType":"section","heading":"Existing requirement of revenue commissioner to lodge royalty return on particular day","content":"### sec.84 Existing requirement of revenue commissioner to lodge royalty return on particular day\n\nThis section applies to a requirement imposed by the revenue commissioner under section 148S of the expired regulation that was in effect immediately before the commencement.\nThe requirement is taken to be a requirement imposed by the revenue commissioner under section 38.\n(sec.84-ssec.1) This section applies to a requirement imposed by the revenue commissioner under section 148S of the expired regulation that was in effect immediately before the commencement.\n(sec.84-ssec.2) The requirement is taken to be a requirement imposed by the revenue commissioner under section 38.","sortOrder":94},{"sectionNumber":"sec.85","sectionType":"section","heading":"Existing quarterly payment notice of revenue commissioner","content":"### sec.85 Existing quarterly payment notice of revenue commissioner\n\nThis section applies to a quarterly payment notice given by the revenue commissioner under section 148W of the expired regulation that was in effect immediately before the commencement.\nThe quarterly payment notice is taken to be a quarterly payment notice given by the revenue commissioner under section 42.\n(sec.85-ssec.1) This section applies to a quarterly payment notice given by the revenue commissioner under section 148W of the expired regulation that was in effect immediately before the commencement.\n(sec.85-ssec.2) The quarterly payment notice is taken to be a quarterly payment notice given by the revenue commissioner under section 42.","sortOrder":95},{"sectionNumber":"sec.86","sectionType":"section","heading":"Existing notice of revenue commissioner stating estimated amount of payments","content":"### sec.86 Existing notice of revenue commissioner stating estimated amount of payments\n\nThis section applies to a notice given by the revenue commissioner under section 148Y(2)(b) of the expired regulation that was in effect immediately before the commencement.\nThe notice is taken to be a notice given by the revenue commissioner under section 44.\n(sec.86-ssec.1) This section applies to a notice given by the revenue commissioner under section 148Y(2)(b) of the expired regulation that was in effect immediately before the commencement.\n(sec.86-ssec.2) The notice is taken to be a notice given by the revenue commissioner under section 44.","sortOrder":96},{"sectionNumber":"sec.87","sectionType":"section","heading":"Existing election by petroleum producer to change monthly payments for return period that is calendar quarter","content":"### sec.87 Existing election by petroleum producer to change monthly payments for return period that is calendar quarter\n\nThis section applies if—\na petroleum producer made an election under section 148Z(3) of the expired regulation; and\nimmediately before the commencement, the election had not ended.\nThe election is taken to be an election made by the petroleum producer under section 45(3).\n(sec.87-ssec.1) This section applies if— a petroleum producer made an election under section 148Z(3) of the expired regulation; and immediately before the commencement, the election had not ended.\n(sec.87-ssec.2) The election is taken to be an election made by the petroleum producer under section 45(3).\n- (a) a petroleum producer made an election under section 148Z(3) of the expired regulation; and\n- (b) immediately before the commencement, the election had not ended.","sortOrder":97},{"sectionNumber":"sec.88","sectionType":"section","heading":"Existing notice of revenue commissioner approving another day for making election under section 148Z of expired regulation","content":"### sec.88 Existing notice of revenue commissioner approving another day for making election under section 148Z of expired regulation\n\nThis section applies to a notice given by the revenue commissioner under section 148Z(4)(c) of the expired regulation that was in effect immediately before the commencement.\nThe notice is taken to be a notice given by the revenue commissioner under section 45(4)(c).\n(sec.88-ssec.1) This section applies to a notice given by the revenue commissioner under section 148Z(4)(c) of the expired regulation that was in effect immediately before the commencement.\n(sec.88-ssec.2) The notice is taken to be a notice given by the revenue commissioner under section 45(4)(c).","sortOrder":98},{"sectionNumber":"sec.89","sectionType":"section","heading":"Existing notice of revenue commissioner requiring petroleum royalty payable to be worked out under section 148X of expired regulation","content":"### sec.89 Existing notice of revenue commissioner requiring petroleum royalty payable to be worked out under section 148X of expired regulation\n\nThis section applies to a notice given by the revenue commissioner under section 148ZA(2) of the expired regulation that was in effect immediately before the commencement.\nThe notice is taken to be a notice given by the revenue commissioner under section 46.\n(sec.89-ssec.1) This section applies to a notice given by the revenue commissioner under section 148ZA(2) of the expired regulation that was in effect immediately before the commencement.\n(sec.89-ssec.2) The notice is taken to be a notice given by the revenue commissioner under section 46.","sortOrder":99},{"sectionNumber":"sec.90","sectionType":"section","heading":"Undecided application by non-tenure holder to be treated as petroleum producer for joint venture tenure","content":"### sec.90 Undecided application by non-tenure holder to be treated as petroleum producer for joint venture tenure\n\nThis section applies if—\na non-tenure holder made an application under section 148ZC(2) of the expired regulation; and\nimmediately before the commencement, the application had not been decided.\nThe application is taken to have been made under section 48(2).\nIf the revenue commissioner decides to grant the application, the election period mentioned in section 48(6) may start on a day before the commencement.\n(sec.90-ssec.1) This section applies if— a non-tenure holder made an application under section 148ZC(2) of the expired regulation; and immediately before the commencement, the application had not been decided.\n(sec.90-ssec.2) The application is taken to have been made under section 48(2).\n(sec.90-ssec.3) If the revenue commissioner decides to grant the application, the election period mentioned in section 48(6) may start on a day before the commencement.\n- (a) a non-tenure holder made an application under section 148ZC(2) of the expired regulation; and\n- (b) immediately before the commencement, the application had not been decided.","sortOrder":100},{"sectionNumber":"sec.91","sectionType":"section","heading":"Existing decision of revenue commissioner to grant application by non-tenure holder to be treated as petroleum producer for joint venture tenure","content":"### sec.91 Existing decision of revenue commissioner to grant application by non-tenure holder to be treated as petroleum producer for joint venture tenure\n\nThis section applies to a decision made by the revenue commissioner under section 148ZC of the expired regulation that was in effect immediately before the commencement.\nThe decision is taken to be a decision made by the revenue commissioner under section 48.\n(sec.91-ssec.1) This section applies to a decision made by the revenue commissioner under section 148ZC of the expired regulation that was in effect immediately before the commencement.\n(sec.91-ssec.2) The decision is taken to be a decision made by the revenue commissioner under section 48.","sortOrder":101},{"sectionNumber":"sec.92","sectionType":"section","heading":"Decision of revenue commissioner to grant application by non-tenure holder to be treated as petroleum producer for joint venture tenure","content":"### sec.92 Decision of revenue commissioner to grant application by non-tenure holder to be treated as petroleum producer for joint venture tenure\n\nThis section applies if the revenue commissioner grants an application under section 48.\nThe election period under section 48(6) may start on a day before the commencement.\n(sec.92-ssec.1) This section applies if the revenue commissioner grants an application under section 48.\n(sec.92-ssec.2) The election period under section 48(6) may start on a day before the commencement.","sortOrder":102},{"sectionNumber":"sec.93","sectionType":"section","heading":"Undecided application to end election period for joint venture tenure","content":"### sec.93 Undecided application to end election period for joint venture tenure\n\nThis section applies if—\na non-tenure holder or tenure holder made an application under section 148ZD(2) of the expired regulation; and\nimmediately before the commencement, the application had not been decided.\nThe application is taken to have been made under section 49(2).\nIf the revenue commissioner decides to end the election period for the joint venture tenure, the day on which the election period ends under section 49(7) may be a day before the commencement.\n(sec.93-ssec.1) This section applies if— a non-tenure holder or tenure holder made an application under section 148ZD(2) of the expired regulation; and immediately before the commencement, the application had not been decided.\n(sec.93-ssec.2) The application is taken to have been made under section 49(2).\n(sec.93-ssec.3) If the revenue commissioner decides to end the election period for the joint venture tenure, the day on which the election period ends under section 49(7) may be a day before the commencement.\n- (a) a non-tenure holder or tenure holder made an application under section 148ZD(2) of the expired regulation; and\n- (b) immediately before the commencement, the application had not been decided.","sortOrder":103},{"sectionNumber":"sec.94","sectionType":"section","heading":"Existing decision of revenue commissioner to end election period for joint venture tenure","content":"### sec.94 Existing decision of revenue commissioner to end election period for joint venture tenure\n\nThis section applies to a decision made by the revenue commissioner under section 148ZD of the expired regulation that was in effect immediately before the commencement.\nThe decision is taken to be a decision made by the revenue commissioner under section 49.\n(sec.94-ssec.1) This section applies to a decision made by the revenue commissioner under section 148ZD of the expired regulation that was in effect immediately before the commencement.\n(sec.94-ssec.2) The decision is taken to be a decision made by the revenue commissioner under section 49.","sortOrder":104},{"sectionNumber":"sec.95","sectionType":"section","heading":"Decision of revenue commissioner to end election period for joint venture tenure","content":"### sec.95 Decision of revenue commissioner to end election period for joint venture tenure\n\nThis section applies if the revenue commissioner grants an application under section 49.\nThe day on which the election period ends under section 49(7) may be a day before the commencement.\n(sec.95-ssec.1) This section applies if the revenue commissioner grants an application under section 49.\n(sec.95-ssec.2) The day on which the election period ends under section 49(7) may be a day before the commencement.","sortOrder":105},{"sectionNumber":"sec.96","sectionType":"section","heading":"Existing notice of revenue commissioner requesting information to support royalty estimate","content":"### sec.96 Existing notice of revenue commissioner requesting information to support royalty estimate\n\nThis section applies to a notice given by the revenue commissioner under section 149D of the expired regulation that was in effect immediately before the commencement.\nThe notice is taken to be a notice given by the revenue commissioner under section 53.\n(sec.96-ssec.1) This section applies to a notice given by the revenue commissioner under section 149D of the expired regulation that was in effect immediately before the commencement.\n(sec.96-ssec.2) The notice is taken to be a notice given by the revenue commissioner under section 53.","sortOrder":106},{"sectionNumber":"sec.97","sectionType":"section","heading":"Existing determination of revenue commissioner about swap arrangements","content":"### sec.97 Existing determination of revenue commissioner about swap arrangements\n\nThis section applies to a determination made by the revenue commissioner under section 149 of the expired regulation that was in effect immediately before the commencement.\nThe determination is taken to be a determination made by the revenue commissioner under section 54.\n(sec.97-ssec.1) This section applies to a determination made by the revenue commissioner under section 149 of the expired regulation that was in effect immediately before the commencement.\n(sec.97-ssec.2) The determination is taken to be a determination made by the revenue commissioner under section 54.","sortOrder":107},{"sectionNumber":"sec.98","sectionType":"section","heading":"Lodgement day before commencement","content":"### sec.98 Lodgement day before commencement\n\nA reference in section 56 of this regulation to the lodgement day includes a reference to a day, before the commencement, that was a lodgement day under section 149I of the expired regulation.","sortOrder":108},{"sectionNumber":"sec.99","sectionType":"section","heading":"Saving of operation of ch 7, pt 14 of expired regulation","content":"### sec.99 Saving of operation of ch 7, pt 14 of expired regulation\n\nChapter 7, part 14 of the expired regulation is declared to be a law to which the Acts Interpretation Act 1954 , section 20A applies.","sortOrder":109},{"sectionNumber":"sec.100","sectionType":"section","heading":"References to expired regulation","content":"### sec.100 References to expired regulation\n\nA reference in a document to the expired regulation may, if the context permits, be taken to be a reference to this regulation.\nUnless the context otherwise indicates or requires, a reference in a current document to a provision of the expired regulation is taken to be a reference to the corresponding provision of this regulation.\nIn this section—\ncurrent document means a document in effect under the expired regulation immediately before the commencement.\n(sec.100-ssec.1) A reference in a document to the expired regulation may, if the context permits, be taken to be a reference to this regulation.\n(sec.100-ssec.2) Unless the context otherwise indicates or requires, a reference in a current document to a provision of the expired regulation is taken to be a reference to the corresponding provision of this regulation.\n(sec.100-ssec.3) In this section— current document means a document in effect under the expired regulation immediately before the commencement.","sortOrder":110}],"analysis":{"summary":{"complexity_score":9,"scope_assessment":{"changed":false,"description":"The regulation stays tightly within its stated purpose: prescribing royalty payment timing, calculation methodology, and rates under the parent Petroleum and Gas Act. While the LNG project framework adds significant administrative machinery, it is a logical and necessary part of implementing a royalty system for a sector where related-party transactions and complex joint ventures are the norm. There is no evidence of scope creep beyond the enabling provision."},"complexity_factors":["Four distinct petroleum product categories (domestic gas, supply gas, project gas, liquid petroleum), each with its own royalty calculation methodology","Sliding-scale royalty rates with multiple price tiers and fractional cent calculations for each product category","Complex interplay between 'independent buyers', 'LNG project buyers', 'relevant entities', and 'resellers' requiring careful classification of every transaction","Dual pricing mechanism: actual sales price vs. deemed/benchmark price for related-party transactions, with different benchmark methodologies per product type","LNG project determination framework giving the revenue commissioner broad retrospective powers to classify ventures, amend determinations, and trigger reassessments","International price references (Europe Brent Spot Price, WM/Reuters FX rates) feeding into domestic royalty calculations, requiring currency conversion","Instalment payment system for quarterly filers with three separate calculation methods (standard, election-based, and previous-period estimates)","Election mechanism allowing producers to opt into benchmark pricing, with restricted exit rights controlled by the commissioner","Cross-references to multiple external statutes (Taxation Administration Act 2001, Acts Interpretation Act 1954, parent Petroleum and Gas Act)","Retrospective operation of commissioner's determinations — decisions can take effect before they are made, creating significant compliance uncertainty","Notification obligations with penalty exposure for LNG project members and producers when project membership changes"],"plain_english_summary":"This Queensland regulation sets how much royalty petroleum producers must pay, when they must pay it, and who it applies to (producers, LNG project members, resellers and buyers). It uses sliding-scale royalty rates tied to sale prices and international oil benchmarks, with special rules for LNG export projects and for related‑party transactions where a benchmark price may replace an internal sale price.\n\nIt also sets filing/payment timing (quarterly or annual), a late‑lodgement fee, and gives the revenue commissioner powers to classify projects, require earlier returns, and reassess royalties."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"On its face the regulation continues and consolidates the established royalty framework rather than expanding core scope. Petroleum producers remain the payers of royalty (see royalty rates and payment provisions in secs 16, 20, 25, 30 and payment timing in secs 40–43). The instrument preserves and carries over prior determinations, elections and notices from the expired regulation (transitional saving and conversion provisions in secs 57–100, e.g. secs 58–61, 64–77, 80–97). It retains and formalises significant administrative discretion for the revenue commissioner to (a) designate LNG projects and members (sec 10) and to reassess affected royalties (sec 11), (b) require benchmark pricing to be used where information is missing or for revenue protection (secs 18, 23, 28, 32), and (c) treat swap arrangements and joint‑venture allocations (secs 48, 54). Compliance burdens (forms, notices, information requests) and sanctions (late‑lodgement fee sec 39, unpaid tax interest sec 56, notice‑based requirements sec 12, 13, and civil penalties for incorrect instalment elections sec 55) are retained. Those retained discretions and procedural additions affect implementation risk and administrative costs but do not, in the text, broaden the categories of persons subject to royalty beyond producers, resellers, and LNG project members described in the regulation."},"complexity_factors":["Multiple commodity categories and definitions that change treatment (domestic, supply, project gas, liquid petroleum) (secs 5–9, 6–9).","Tiered, piecewise royalty rate schedules tied to average sales price bands for each category (secs 16, 20, 25, 30).","Average sales price (ASP) calculations that mix actual revenue, deemed sales values and benchmark prices; separate ASP rules for each category (secs 17, 21, 26, 31).","Benchmark price computations requiring external market prices and currency conversion via an average hedge settlement rate (secs 14, 22, 27, 29).","Revenue commissioner discretion to determine LNG projects, classify swap arrangements, require benchmark substitution, change reporting periods, and approve/withdraw elections (secs 10, 11, 18, 23, 28, 36, 42, 54).","Payment timing rules with quarterly instalments, elections to vary instalment amounts, estimation and reconciliation mechanics, and civil penalties for inaccurate elections (secs 37–46, 50–56).","Joint‑venture election mechanism allowing non‑tenure participants to be treated as producers (secs 47–49) and extensive transitional provisions mapping from the expired regulation (secs 57–100).","Operational compliance tasks and sanctions: mandatory forms, lodging rules, notices, information requests and monetary sanctions (late‑lodgement fee, unpaid interest, penalty units, civil penalties) (secs 34–39, 51–53, 55–56)."],"plain_english_summary":"This regulation sets how petroleum and gas royalties are calculated, reported and paid. It classifies produced petroleum (domestic, supply, project gas or liquid petroleum), prescribes formulae and benchmark fallbacks for average sales prices, timing and instalments for payments, and enforcement (fees, penalties, information requests). It affects petroleum producers, resellers and LNG‑project members because it determines who pays, when, and what records and notices must be provided to the revenue commissioner."},"issue_detection":{"absurdities":[{"type":"retroactive_impossibility","section":"sec.10(9)","severity":"high","reasoning":"Section 10(9) permits the revenue commissioner to state a determination takes effect on a day BEFORE the determination is made. This means a petroleum producer could be found liable for royalty obligations under a classification (e.g., LNG project membership) that did not legally exist at the time they were producing and selling gas. Producers cannot comply with obligations they had no legal notice of, yet section 11 requires reassessment based on such retroactive determinations. While section 11(4)-(5) partially mitigates penalty liability, the underlying royalty liability itself is imposed retroactively, which is a logical impossibility for compliance purposes.","confidence":0.88,"description":"Retroactive determinations creating impossible compliance obligations"},{"type":"retroactive_impossibility","section":"sec.18(9) / sec.23(9) / sec.28(9) / sec.32(9)","severity":"medium","reasoning":"These subsections each state that the day the election ends (per subsection (8)) 'may be a day before the day on which the petroleum producer made the application under subsection (5) to end the election.' This creates a temporal absurdity: the election is ended before the producer applied to end it, meaning the producer may have been operating under the belief the election was still in force while it had in fact already been terminated. This undermines legal certainty and creates impossible compliance scenarios where the producer would have been applying the wrong pricing method for royalty calculations during a period the election had been retroactively ended.","confidence":0.85,"description":"Election end date can precede the application to end the election"},{"type":"retroactive_impossibility","section":"sec.18(13) / sec.23(13) / sec.28(13) / sec.32(13)","severity":"high","reasoning":"These subsections permit the revenue commissioner's decision to apply the benchmark price (for protection of public revenue) to take effect before the decision is made. A producer who calculated and paid royalty under the standard average sales price formula could retroactively find themselves subject to the benchmark price method. This is a structural impossibility: a producer cannot have applied a pricing method that was not determined until after the royalty period ended, creating unavoidable non-compliance through no fault of the producer.","confidence":0.87,"description":"Revenue commissioner's benchmark price decision can be retroactive"},{"type":"other","section":"sec.16(a)","severity":"medium","reasoning":"Section 16(a) sets the rate as '0.02 cents per gigajoule for each 1 cent per gigajoule more than $0 per gigajoule.' If the average sales price is exactly $0 (e.g., gas that is given away or transferred at no cost), the formula yields zero royalty. A producer could structure arrangements to transfer gas at $0 to a related entity (non-independent buyer) but the benchmark price mechanism in s.17/18 only applies where there are non-independent buyer sales. If no gas is sold at all (only transferred at $0), this may fall outside the benchmark price override triggers, potentially resulting in zero royalty on produced gas.","confidence":0.62,"description":"Zero-price gas attracts zero royalty under the formula"},{"type":"other","section":"sec.6 / sec.8","severity":"medium","reasoning":"Section 6 defines domestic gas to include gas that is 'stored by, or kept in the possession of, the producer or 1 or more resellers' BUT only where 'the producer is not a member of an LNG project.' Section 8 defines project gas as gas produced as a member of an LNG project that is 'not domestic gas.' If a producer who IS a member of an LNG project stores gas that is not yet sold and not yet converted to LNG and not flared/vented, that gas cannot be domestic gas (excluded by s.6(b)(iii)), cannot be supply gas (not sold to an LNG project buyer per s.7), and may not be project gas if not yet designated as such. The gas falls into an unclassified gap with no royalty rate provision applicable until it is eventually sold or used.","confidence":0.71,"description":"Project gas definition creates classification gap for stored gas of LNG project members"},{"type":"circular_definition","section":"sec.39(3)","severity":"low","reasoning":"Section 39(1) imposes the fee when a return is not lodged by the required day. Section 39(3) states the fee is payable 'the day the assessment is made of the petroleum royalty payable for the period to which the return relates.' If no return is ever lodged, the revenue commissioner may not have sufficient information to make an assessment, meaning the time for paying the late lodgement fee may never crystallise, creating a circular situation where non-compliance with lodgement defers the financial consequence of that non-compliance indefinitely.","confidence":0.58,"description":"Late lodgement fee is payable on the day of assessment but the assessment may never occur if no return is lodged"},{"type":"impossible_compliance","section":"sec.41 / sec.43","severity":"high","reasoning":"Section 43 calculates monthly instalments as one-third of 'the total amount of the petroleum royalty payable by the petroleum producer under the Act for the previous royalty return period.' For a producer in their first ever royalty return period, there is no previous royalty return period, making the formula mathematically undefined (division by reference to a non-existent quantity). Section 45 provides an alternative election method but it is optional. The primary calculation mechanism in s.43 is simply unworkable for new entrants without mandatory fallback provision.","confidence":0.82,"description":"Instalment calculation for new or first-quarter producers is mathematically undefined"},{"type":"other","section":"sec.22 / sec.27","severity":"medium","reasoning":"Sections 22 and 27 calculate benchmark price using SP = average Brent Spot Price over the 'relevant period' (which per s.14 is the 3 or 12-month period starting 4 months before the royalty return period) converted to AUD 'at the average hedge settlement rate for the royalty return period.' This creates a temporal mismatch: the oil price is measured in a period ending approximately 1 month before the royalty return period starts, but the currency conversion rate is from the royalty return period itself. A producer cannot know the benchmark price with certainty during the royalty return period because the hedge settlement rate used for conversion covers that very period, which is ongoing.","confidence":0.74,"description":"Benchmark price for supply gas and project gas use a 'relevant period' that precedes the royalty return period by 4 months, while the average hedge settlement rate is for the royalty return period itself"},{"type":"other","section":"sec.12(2) / sec.12(3)","severity":"low","reasoning":"Section 12(2) requires an LNG project member who purchases gas to notify the seller 'as soon as reasonably practicable after the purchase.' Section 12(3) exempts compliance where the member 'has already given' such notice. On the very first purchase, the member must notify after the purchase. However, the definition of 'LNG project buyer' in s.5 only applies where the producer 'knows' the person is a member because of a notice having been given. This means the first transaction is necessarily conducted without the seller's knowledge of the buyer's LNG project status, potentially misclassifying the first sale as domestic gas rather than supply gas, with royalty rate consequences the producer could not have avoided.","confidence":0.76,"description":"Notification obligation arises after purchase but exemption for prior notice creates impossible timing for first purchase"}],"contradictions":[{"severity":"high","section_a":"sec.10(6)","section_b":"sec.10(9)","confidence":0.87,"description":"A determination takes effect on 'the day stated in the notice' but that day may precede when the notice is given or the determination is made"},{"severity":"medium","section_a":"sec.11(1)(b)","section_b":"sec.10(9)","confidence":0.78,"description":"Section 11 requires reassessment where an assessment was made 'without having regard to the new decision,' but if the determination under s.10(9) is retrospective, there will always be an assessment made without regard to it (since it did not exist at the time), making the reassessment obligation effectively mandatory for all retroactive determinations, regardless of whether the original assessment was reasonable or correct at the time."},{"severity":"medium","section_a":"sec.36(4)(c)","section_b":"sec.36(2)(b)","confidence":0.72,"description":"Section 36(4)(c) provides that where the commissioner decides a non-lease-holder must report quarterly, the effective date 'must not be earlier than the day the revenue commissioner gives the petroleum producer the notice unless the person agrees otherwise.' However, section 36(2)(b) grants the commissioner discretion to make the decision without limiting when it can apply, and no equivalent protection exists in s.36(4) for decisions under s.36(2)(a) (switching lease-holders to annual returns), allowing retroactive application against lease-holders without their consent."},{"severity":"low","section_a":"sec.41(1)","section_b":"sec.42(1)","confidence":0.65,"description":"Section 41(1) states instalments 1 and 2 are payable on the last business day of the second and third months of the royalty return period respectively. Section 42(1) allows the commissioner to state that royalty is payable on 'the day the royalty return must be lodged' instead of 'an earlier time under section 41(1)(a) or (b).' However, the definition of instalment 3 in s.41(3) calculates it as total royalty less instalments 1 and 2. If a quarterly payment notice is in place and instalments 1 and 2 are deferred to the return lodgement day, instalment 3 would be calculated as total royalty minus zero, meaning the producer effectively pays all royalty as instalment 3 — which is the same outcome as paying on lodgement day. The instalment structure collapses entirely under a quarterly payment notice, rendering sections 41, 43, 44 and 45 redundant for producers subject to s.42 notices."},{"severity":"medium","section_a":"sec.6(b)(iii)","section_b":"sec.8(c)","confidence":0.7,"description":"Section 6(b)(iii) excludes stored gas of LNG project members from domestic gas classification. Section 8(c) defines project gas as gas that 'is not domestic gas.' Stored gas held by an LNG project member producer that has not yet been sold or used cannot be domestic gas (excluded by s.6(b)(iii)), supply gas (not sold to an LNG project buyer), or confirmed as project gas until it is no longer stored. The two sections jointly create a classification void for stored gas of LNG project member producers."},{"severity":"medium","section_a":"sec.17(1) (AR/AV variables)","section_b":"sec.6(b)(i)","confidence":0.73,"description":"Section 17 calculates the average sales price for domestic gas using revenue and volume from gas sold to persons who are 'not an LNG project buyer' and 'an independent buyer.' Section 6 defines domestic gas to include gas sold to persons who are 'not an LNG project buyer' (whether or not independent). The ASP formula in s.17 therefore excludes from its direct sales price calculation any gas sold to non-independent buyers who are not LNG project buyers, treating them via the deemed sales value mechanism instead. This means the ASP for domestic gas is not actually based on the full universe of domestic gas sales as defined in s.6, but a subset, potentially producing an ASP that does not accurately reflect the actual domestic gas market price received by the producer."},{"severity":"medium","section_a":"sec.18(3) / sec.18(4)","section_b":"sec.18(1)(a)","confidence":0.8,"description":"Section 18(3) allows a producer to make a benchmark price election in a royalty return. Section 18(4) states the election starts on the first day of the royalty return period for that return. Section 18(1)(a) says s.18 applies if 'an election made by the producer under subsection (3) is in effect.' Since the election is made in the return (which is lodged after the period ends) but takes effect from the start of that period, the election is technically 'in effect' for a period that has already ended before the election is made, creating a logical circularity where an election triggers its own application retroactively."},{"severity":"low","section_a":"sec.13(2)","section_b":"sec.13(6)","confidence":0.6,"description":"Section 13(2) requires each continuing petroleum producer to notify the revenue commissioner within 30 days when a member departs. Section 13(6) requires the revenue commissioner to make a decision about amending or revoking the LNG project determination 'after receiving a notice.' If multiple producers each give separate notices (as permitted), and the first notice triggers the commissioner's decision obligation, subsequent notices may be redundant or trigger repeated decision-making obligations for the same departure event, with no mechanism to consolidate them or limit the commissioner's obligation to a single decision per departure event."}]},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"_metrics":{"completionTokens":676},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The regulation appears to maintain the same scope as its predecessor (the expired Petroleum and Gas (Royalty) Regulation 2004). The extensive transitional provisions (sections 57-100) confirm this is a re-enactment with updated structure rather than an expansion. The core purpose—prescribing royalty calculation methods, rates, and payment timing—remains unchanged."},"complexity_factors":["Multiple overlapping definitions of petroleum types (domestic gas, supply gas, project gas, liquid petroleum) with conditional logic","Extensive mathematical formulas for calculating average sales prices and deemed values","Tiered royalty rate structures with multiple price thresholds ($3/$8/$9/$14/$50/$100)","Cross-references to the Taxation Administration Act 2001 for assessments, penalties, and interest","LNG project determination process with notification requirements and potential criminal penalties","Election mechanisms allowing producers to choose benchmark pricing with complex commencement and termination rules","Transitional provisions preserving 43 decisions/elections from the expired 2004 regulation","Swap arrangement provisions allowing Commissioner to make determinations about price calculations","Monthly instalment calculations with look-back periods and estimation adjustments","Joint venture tenure provisions creating deemed producer status for non-tenure holders"],"plain_english_summary":"This regulation sets out how petroleum producers in Queensland must calculate and pay royalties to the government for extracting oil and gas.\n\n**What it covers:**\n\n- **Four types of petroleum** with different royalty rates:\n  - **Domestic gas** — gas sold to local buyers (not LNG projects), flared, or stored\n  - **Supply gas** — gas sold to LNG (liquefied natural gas) project buyers\n  - **Project gas** — gas produced by companies that are members of LNG projects\n  - **Liquid petroleum** — oil\n\n- **How royalties are calculated:**\n  - Royalties are based on **volume** (gigajoules for gas, barrels for oil) multiplied by a **rate** that depends on the **average sales price**\n  - The rate increases in tiers — the higher the price, the higher the percentage royalty\n  - Producers can elect to use a **benchmark price** (based on market indices like the Wallumbilla gas price or Brent crude oil price) instead of calculating their actual average sales price\n\n- **LNG projects:**\n  - The Revenue Commissioner can formally determine which ventures count as \"LNG projects\"\n  - Members must notify sellers when they buy gas, so the correct royalty category applies\n\n- **Payment and reporting:**\n  - Most producers file quarterly returns; some file yearly\n  - Quarterly filers pay in three instalments (months 2, 3, and when lodging the return)\n  - Late lodgement attracts fees\n\n- **Joint ventures:**\n  - Non-tenure holders (partners without the mining lease) can apply to be treated as petroleum producers for royalty purposes\n\n**Why it matters:** This ensures the State gets a fair return from petroleum extraction, with higher rates when commodity prices are high. The benchmark price mechanism prevents producers from artificially lowering reported prices through related-party sales."}},"importantCases":[],"_links":{"self":"/api/acts/petroleum-and-gas-royalty-regulation-2021","history":"/api/acts/petroleum-and-gas-royalty-regulation-2021/history","analysis":"/api/acts/petroleum-and-gas-royalty-regulation-2021/analysis","conflicts":"/api/acts/petroleum-and-gas-royalty-regulation-2021/conflicts","importantCases":"/api/acts/petroleum-and-gas-royalty-regulation-2021/important-cases","documents":"/api/acts/petroleum-and-gas-royalty-regulation-2021/documents"}}