What it does
Mechanically, the Energy Resources Act 2000 (SA) creates a comprehensive licensing and regulatory framework for exploration, production, transmission, storage and management of certain energy resources in South Australia (see s 3 for objects; Pt 3 for licensing scheme). The Act vests property in regulated resources in the Crown (s 5(1)) while providing a pathway for private persons and bodies corporate to obtain rights to explore, retain, produce, store and transport regulated substances and resources through a set of discrete licence classes (s 13) including exploration, retention, production, pipeline, associated activities, preliminary and speculative survey licences, and special facilities licences (ss 13, 14, 17, 21, 28, 34, 46, 56, 59B). A person must not engage in a regulated activity unless authorised by a licence under the Act (s 11).
The Act imposes mandatory environmental and management prerequisites prior to carrying out regulated activities: a statement of environmental objectives must be in force for relevant activities (s 96) and licence holders must comply with approved statements of environmental objectives (s 105). Environmental impact reports and assessment criteria are mandated (ss 96A, 97). The Minister has powers to give environmental and rehabilitation directions where activities cause or risk undue environmental damage or breach approved objectives (ss 108-109). The Act also sets reporting, record-keeping and incident notification obligations on licensees (ss 84-86, 85).
Economic and fiscal mechanisms are provided: royalties are payable on produced regulated resources and geothermal energy at prescribed percentages (s 43), regular returns and payments are required (s 43(4)-(5)), and rental applies for use of a natural reservoir for storage (Pt 7A, ss 45A-45D). Annual licence fees are charged (s 78), and the Minister may require security for obligations (s 66(2)). A charge in favour of the Crown may be created on personal property to secure debts under the Act (s 132). The Act creates public and commercial registers (Pt 13, ss 115-118) and a public environmental register (Pt 12 Div 5, ss 106-107).