Part 4Exploration

Part 4—Exploration Division 1—Competitive tender regions 16—Minister may declare competitive tender region (1) The Minister may, by notice in the Gazette, declare the whole or an area of the State specified in the notice as a competitive tender region in respect of exploration for energy resources. (2) A declaration under subsection (1)— (a) must specify the energy resource in relation to which the competitive tender region is to be declared; and (b) must specify whether the declaration is in respect of the whole State or a designated area specified in the notice; and (c) has effect from the day or for the period specified in the notice. (3) If a declaration of a competitive tender region under this section is in force— (a) an application for an exploration licence for an energy resource specified in the declaration in respect of the declared area must not be made except in response to a call for tenders under section 22; and (b) a right of exploration must not be granted for exploration for an energy resource not specified in the declaration in respect of the declared area. Division 2—Speculative survey 17—Speculative survey licence (1) A speculative survey licence authorises the licensee to carry out exploratory operations of the kind specified in the licence in the licence area. (2) A speculative survey licence cannot authorise drilling beyond a depth of 300 metres. (3) The right to carry out exploratory operations conferred by a speculative survey licence is not an exclusive right. 18—Area of speculative survey licence (1) A speculative survey licence may be granted for 1 or more separate areas. (2) However, the total area of a speculative survey licence cannot exceed 10 000 km2. 19—Term of speculative survey licence (1) The term of a speculative survey licence is 1 year. (2) A speculative survey licence may be renewed, from time to time, for a further term. 20—Consultation preceding grant or renewal of speculative survey licence Before a speculative survey licence is granted or renewed over the area, or part of the area, of an existing licence, the applicant for the speculative survey licence must— (a) consult with the existing licensee and seek to reach agreement on the activities to be carried out under the speculative survey licence on the area that is to be subject to both licences; and (b) inform the Minister of the result of the consultation. Division 3—Exploration licences 21—Exploration licences (1) There will be 4 categories of exploration licence: (a) a petroleum exploration licence; (b) a geothermal exploration licence; (c) a gas storage exploration licence; (d) a regulated substance exploration licence. (2) An exploration licence authorises subject to its terms the licensee to carry out in the licence area— (a) exploratory operations for energy resources of the kind specified in the licence; and (b) with respect to the energy resources so specified—operations— (i) to establish the nature and extent of a discovery of regulated resources; (ii) to establish the feasibility of production and appropriate production techniques. (3) A licensee who holds an exploration licence is entitled, subject to this Act, to the grant of a corresponding retention licence or a corresponding production licence for an energy resource discovered in the licence area. 22—Call for tenders (1) If an exploration licence is to be granted for an area within a competitive tender region, the Minister must call for tenders for an exploration licence of the relevant category (taking into account the regulated resources with respect to which the region has been declared). (2) The Minister has a discretion to call for tenders for an exploration licence in other cases. (3) A call for tenders is made by notice published in the Gazette inviting applications for the grant of an exploration licence of the relevant category for an area specified in the notice. (4) The notice— (a) must specify a period within which applications are to be made; and (b) must state the criteria by reference to which applications are to be evaluated; and (c) may include information about any special terms and conditions subject to which the exploration licence is to be granted; and (d) may include other information the Minister considers appropriate. (5) The selection of an applicant is not complete until the applicant executes the licence. (6) On the selection of a successful applicant from among those who apply in response to an advertisement under this section, the Minister must— (a) publish in the Gazette a statement of the basis for the selection of the successful applicant, including the successful applicant's proposed work program; and (b) give any unsuccessful applicant written notice of the reasons for the rejection of the application. 23—Criteria to be considered for granting exploration licence In considering an application for the grant of an exploration licence, the Minister must have regard to— (a) the suitability of applicant's proposed work program for evaluating the prospectivity of the licence area and discovering regulated resources; and (b) the adequacy of the applicant's technical and financial resources; and (c) if applications have been invited for the licence by public advertisement—the stated criteria for evaluation of the applications. 24—Areas for which licence may be granted (1) An exploration licence may be granted for 1 or more separate areas. (2) However, the total licence area cannot exceed— (a) in the case of a gas storage exploration licence—2 500 km2; (b) in the case of a geothermal exploration licence—3 000 km2; (c) in the case of a petroleum exploration licence or a regulated substance exploration licence—10 000 km2. 25—Work program to be carried out by exploration licensee (1) It is a mandatory condition of an exploration licence that the licensee must carry out work in the licence area in accordance with a work program approved by the Minister. (2) A proposed work program is to be submitted for the Minister's approval with an application for the grant or renewal of an exploration licence. (3) The Minister may approve the proposed work program with or without addition or variation. (4) The Minister may approve deferment, variation or reduction of the work to the carried out under an approved work program. (4a) However, Ministerial approval is not required for the acceleration of the work to be carried out under an approved work program. (5) If a licence was granted on the basis of competitive tender, the Minister— (a) must, before approving deferment, variation or reduction of the work to be carried out under an approved work program—have regard to work programs proposed by other applicants for the licence; and (b) must publish in the Gazette notice of the approval stating the effect of the approval. (6) The Minister may, as a condition of approving the reduction or deferment of work under subsection (4), require the licensee to relinquish a specified portion of the licence area. 26—Term and renewal of exploration licence (1) The term of an exploration licence is 5 years or such term of less than 5 years as specified by the Minister in a particular case. (2) An exploration licence may be granted on terms under which the licence is to be renewable for a further term or 2 further terms (as specified by the Minister at the time of the grant of the licence). (3) Subject to a succeeding subsection, a licence that is renewable for one further term must provide for the excision, on renewal, of an area equal to at least 50% of the original licence area and a licence that is renewable for 2 further terms must provide for the excision, on each renewal, of an area equal to at least 33⅓% of the original licence area. (4) The area to be excised is to be determined by the Minister— (a) if the licensee puts a proposal to the Minister in the application for renewal of the licence and the Minister accepts the proposal—on the basis of that proposal; or (b) in any other case—after the Minister has put a proposal to the licensee and has considered any representations made by the licensee within 14 days after notice of the proposal is given to the licensee. (5) The Minister must accept the licensee's proposal under subsection (4)(a) if it reasonably allows for the grant of new exploration licences over the area or areas to be excised. (5a) Subsections (3), (4) and (5) do not apply in relation to a gas storage exploration licence. (5b) The area to be subject to an excision under subsection (3) will be reduced by an amount equal to the area of any production licence or retention licence granted during the immediately preceding term of the exploration licence. (6) When a licence falls due for renewal, the licensee, if not in default under the licence, is entitled to the renewal of the licence in accordance with the terms of the licence. 27—Production of regulated resource under exploration licence (1) The holder of a petroleum exploration licence or a regulated substance exploration licence may produce a regulated substance from a well in the licence area for the purpose of establishing the nature and extent of a discovery. (1a) The holder of a geothermal exploration licence may produce geothermal energy from a well in the licence area for the purpose of establishing the nature and extent of a discovery. (2) However, the licensee must not produce a regulated resource from a well for more than 10 days in aggregate without the Minister's approval. (2a) The holder of a gas storage exploration licence may place a regulated substance in a natural reservoir for the purpose of establishing the suitability of the natural reservoir for storage purposes. (3) The Minister may grant an approval under this section on conditions the Minister considers appropriate.