Part 11General provisions about licences

Part 11—General provisions about licences Division 1—General provision about applications 65—Application for licence (1) An application for a licence— (a) must be made in a manner and form determined by the Minister; and (b) if the licence is to contain a mandatory condition requiring the licensee to carry out work in accordance with an approved work program—must be accompanied by a proposed work program for the first term of the licence; and (c) must be accompanied by a statement of the financial and technical resources available to the applicant; and (d) must contain other information required by the Minister; and (e) must be accompanied by the prescribed fee. (1a) If an application for an exploration licence is made in accordance with this Act (the relevant application), the relevant application will, for the purposes associated with its consideration and any grant of an exploration licence on the basis of the application, rank ahead of any other application for an exploration licence for an overlapping area received by the Minister after the time that the Minister received the relevant application. (1b) Subsection (1a) does not apply if the application is in response to a call for tenders under section 22. (1c) A ranking established under subsection (1a) will cease to apply if the Minister cancels the ranking on the ground— (a) that the applicant has failed to comply with a requirement under this Act (in accordance with any relevant time requirement); or (b) that the application is found to be invalid; or (c) that there is some other default, defect or circumstances that the Minister considers is sufficiently significant to warrant the cancellation of the ranking. (2) An application for the renewal of a licence— (a) must be made to the Minister in a manner and form determined by the Minister at least 2 months before the end of the licence term preceding the proposed renewal; and (b) must contain other information required by the Minister; and (c) if the licence contains a mandatory condition requiring the licensee to carry out work in accordance with an approved work program—must be accompanied by a proposed work program for the term of the renewal; and (d) must be accompanied by the prescribed fee. (3) The Minister may require an applicant for the grant or renewal of a licence to provide any further information, documents or materials to assist in assessing and determining the application. (4) If an applicant fails to comply with a requirement under subsection (3) within a reasonable time allowed by the Minister (which must be at least 30 days), the application lapses. (5) If an application for the renewal of a licence is made before the end of the term of the licence, the licence term is extended until the application is determined. (6) Notice of an application for the grant of a production licence, and notice of an application for the grant or renewal of a pipeline licence, associated activities licence or special facilities licence, must be published in the Gazette in accordance with a determination of the Minister before the application is determined. 66—Preconditions of grant or renewal of licence (1) The Minister may offer a licence to a particular applicant on condition that— (a) the applicant is to return the executed licence to the Minister within a specified period; and (b) if the applicant fails to do so—the offer lapses and the licence may be offered to someone else. (2) As a condition of granting or renewing a licence, the Minister may require the applicant to give security, of a kind and amount acceptable to the Minister, for the satisfaction of obligations arising under this Act or the licence. Division 2—Extent of licence exclusivity 67—Application of Division This Division applies to licences of the following classes: (a) exploration licence; (b) retention licence; (c) production licence. 68—Extent to which same area may be subject to different licences (1) A licence to which this Division applies is compatible with another licence to which this Division applies if— (a) 1 relates to a source of geothermal energy and the other does not; or (b) 1 relates to gas storage and the other does not. (3) The same area cannot be simultaneously subject to two or more licences to which this Division applies unless the licences are compatible. (4) For the purposes of this section, if a person who is entitled to the grant of a licence to which this Division applies makes an application for such a licence, the area to which the application relates is to be taken to be subject to a licence to which this Division applies until the application is determined. (5) This section does not derogate from the operation of Division 5. 69—Grant of compatible licence to area already under licence (1) Before the Minister grants a compatible licence in respect of an area that is already wholly or partly subject to a licence to which this Division applies, the Minister must consult with the existing licensee unless— (a) the existing licensee is the person applying for the compatible licence; or (b) the existing licensee's licence, on the day on which the application for the relevant licence is made, had been offered but not yet granted to them by the Minister in accordance with section 66. (2) The Minister must, in acting under subsection (1), seek to consult on— (a) the reasons put forward by the applicant for the grant of the relevant licence; and (b) the legitimate business interests of the holder of the existing licence; and (c) the effect of the operations to be carried out under the proposed licence on the operations carried out under the existing licence; and (d) the operational and technical requirements for the safe, efficient and reliable conduct of operations under both licences, (and the Minister may consult on such other matters as the Minister considers relevant). 70—Interrelationship between rights of licensees under compatible licences If a licensee discovers a regulated resource in an area subject to two or more compatible licences, the rights under this Act in respect of the discovery attach to the licensee who holds a licence for a regulated resource of the relevant kind irrespective of whether that licensee actually made the discovery. 71—Excision of licence areas If— (a) a retention licence is granted to the holder of an exploration licence or a production licence in respect of part only of the area comprised in the earlier licence; or (b) a production licence is granted to the holder of an exploration licence or a production licence in respect of part only of the area comprised in the earlier licence, the area of the new licence is excised from the area of the earlier licence. Division 3—Licence conditions 72—Mandatory conditions A licence must include the conditions designated in this Act as mandatory conditions. 73—Mandatory condition as to use of information etc It is a mandatory condition of every licence that the licensee authorises the Minister— (a) to make use of information and records provided by the licensee under this Act; and (b) to disclose information and records provided by the licensee under this Act as authorised by the regulations. 73A—Mandatory condition as to management system It is a mandatory condition of every licence that the licensee must establish and maintain a management system that complies with any requirements prescribed by the regulations in relation to the regulated activities to be carried out under the licence. 74—Classification of activities to be conducted under licence (1) A licence is to include mandatory conditions dividing the regulated activities to be carried out under the licence into— (a) activities requiring high level official surveillance; or (b) activities requiring low level official surveillance. (2) The activities are to be classified as requiring high level official surveillance unless the licensee satisfies the Minister that, in view of the licensee's demonstrated competence to comply with the requirements of this Act and the conditions of the licence, the activities should be classified as requiring low level official surveillance. (3) The mandatory conditions are to provide as follows: (a) the Minister's prior written approval is required for activities requiring high level official surveillance; and (b) notice of activities requiring low level official surveillance is to be given as required in the conditions or by regulation. (4) The Minister may, by written notice to a licensee, change the classification of activities under the relevant licence conditions. (5) If regulated activities to be conducted under a licence are generally or substantially classified as requiring a low level of official surveillance, the annual licence fee payable for the licence will be reduced by an amount not exceeding 50% of the fee according to a determination of the Minister as to the level of official surveillance required under the licence. 75—Mandatory condition about resources required for compliance with environmental obligations It is a mandatory condition of every licence that the licensee must have adequate technical and financial resources to ensure compliance with the licensee's environmental obligations (including the rehabilitation of land adversely affected by regulated activities carried out under the licence). 76—Discretionary conditions (1) A licence may be granted on other conditions (discretionary conditions) the Minister considers appropriate. (2) The discretionary conditions of the licence may (for example) include a condition requiring the licensee to maintain insurance on terms and conditions approved by the Minister insuring the licensee and the State against obligations arising from regulated activities under the licence. (3) The Minister may add a discretionary condition to a licence, or vary or revoke a discretionary condition of a licence— (a) on the renewal of the licence; or (b) at any other time with the agreement of the licensee. 76A—Suspension of conditions of licence by agreement (1) The Minister may, by agreement with the licensee, suspend, either for a specified period or indefinitely, any of the conditions attached to a licence (including a mandatory condition). (2) The Minister may, as or when the Minister thinks fit, terminate a suspension under subsection (1). (3) If a suspension is put in place under subsection (1), the Minister may, if relevant, by the instrument of suspension or by a later instrument furnished to the licensee, extend the period of the licence by a period not exceeding the period of the suspension. 77—Non-compliance with licence conditions If a licence condition is not complied with, the licensee is guilty of an offence. Division 4—Annual fees 78—Annual fees (1) A licensee must pay to the Minister annually and in advance a fee appropriate to the relevant licence fixed by, or calculated in accordance with, the prescribed scale. (2) If a licensee fails to pay a fee in accordance with subsection (1)— (a) the amount in arrears will, unless the Minister determines otherwise, be increased by penalty interest at the prescribed rate; and (b) the Minister may impose on the licensee a fine of an amount fixed by the Minister up to a limit of $1,000 or 10% of the outstanding fee, whichever is the greater. (3) The Minister may for any proper reason remit penalty interest or a fine imposed under subsection (2) wholly or in part. (4) A fee (and any penalty interest or fine imposed by the Minister under this section) may be recovered as a debt due to the Crown.