43Power of Minister to ensure continued use of pipeline

43 Power of Minister to ensure continued use of pipeline (1) Where a licence has, after completion of the construction of the pipeline to which it relates: (a) expired and not been renewed; (b) been surrendered; or (c) been cancelled, a person who wishes to operate the pipeline in the place of the former licensee may apply to the Minister for a licence so to do. (2) An application for a licence under this section shall: (a) be made in a form and manner approved by the Minister; and Energy Pipelines Act 1981 42 (b) be accompanied by particulars of: (i) the pipeline which the applicant proposes to operate; (ii) the financial resources of the applicant; (iii) if the applicant is a corporation, each of the persons holding more than 5% of the issued shares in the corporation and of a corporation deemed by section 50 of the Corporations Act 2001 to be a related corporation; and (iv) any agreement made or proposed to be made with the former licensee for the acquisition or use of the pipeline. (3) Where an applicant under subsection (1) has entered into negotiations with the former licensee for the acquisition or use of the pipeline the subject of the application but has been unable to reach agreement on the terms upon which he shall acquire or use the pipeline, he shall inform the Minister of that fact when making the application and may, if there are to his knowledge no other persons engaged in negotiations with the former licensee for the operation of the pipeline, request the Minister to issue directions under this section and submit to the Minister in writing any matters which he wishes the Minister to consider in connection with the request. (4) On receipt of a request under subsection (3), the Minister: (a) shall serve notice of the request on the former licensee; (b) may serve notice of the request on such other persons as he thinks fit; and (c) shall specify in the notice served under this subsection a date on or before which the former licensee or other person, if any, on whom a notice is served may submit to the Minister, in writing, matters which he wishes the Minister to consider in connection with the request. (5) Subject to subsections (5A) and (6), the Minister may, where an application under subsection (2) does not include a request under subsection (3), either: (a) grant a licence; or (b) refuse to grant a licence. Energy Pipelines Act 1981 43 (5A) The Minister must not grant a licence under subsection (5) unless sufficient to accommodate the pipeline. (6) A licence granted under this section may be subject to such conditions applicable to a licence granted under Part III as the Minister thinks fit and specifies in the licence. (7) Where an application under subsection (2) includes a request under subsection (3), the Minister, if satisfied that there are no other persons engaged in negotiations with the former licensee for the operation of the pipeline and, after considering matters submitted to him under subsection (4)(c) on or before the specified date and such other matters as he thinks fit, may, by instrument in writing served on the applicant and the former licensee: (a) give notice to the applicant and the former licensee requiring them to continue their negotiations for such further period, not exceeding 3 months, as he specifies in the instrument; or (b) give to the applicant and to the former licensee such directions as he thinks fit for and in relation to the operation of the pipeline by the applicant, and at the same time, or at the expiration of the period specified in paragraph (a), he may: (c) refuse to grant a licence; or (d) grant a licence. (8) Where, at the expiration of 3 months after the expiry, surrender or cancellation of a licence, 2 or more persons have entered into negotiations with the former licensee for the acquisition or use of the pipeline but no agreement has been reached as to the terms upon which the pipeline may be used or acquired by any of them, the Minister may, by instrument in writing served on the former licensee, require the former licensee to submit to him such particulars of the negotiations as he specifies in the instrument and the Minister may, on receipt of the required particulars and after obtaining the comments of the other parties to those negotiations, issue to the former licensee and to all or any of the other parties to the negotiations, such directions in respect of the terms on which the pipeline may be acquired or used as the Minister thinks fit. (9) Without limiting the generality of subsection (7) or (8), directions under subsection (7)(b) may include a direction as to the amount to be paid to the former licensee for the use of the pipeline. Energy Pipelines Act 1981 44 (10) A person to whom a direction under subsection (7) or (8) is given shall comply with and not contravene the direction. Maximum penalty: In the case of a natural person – 40 penalty 200 penalty units and 10 penalty units for each day during which the offence (11) If, in the circumstances referred to in subsection (1): (a) there is no applicant for a licence to operate the pipeline; (b) the Minister refuses to issue a licence to an applicant to operate the pipeline, and there are no other applicants; or (c) an applicant, having made a request to the Minister under subsection (3) for directions, is unable to comply with the directions of the Minister, and there are no other applicants, the Minister may make such arrangements as he thinks fit for the operation of the pipeline by or on behalf of the Territory. Part V Registration of licences and related instruments