Part 7Royalty

Part 7—Royalty 43—Royalty on regulated resources (1) The holder of a licence must pay to the Crown a royalty equivalent to the prescribed percentage of the value (at the well head) of a regulated resource produced from land comprised in the licence. (2) The prescribed percentage is— (a) for a regulated substance—10%; (b) for geothermal energy—2.5%. (3) Royalty is not payable on the following: (a) a regulated substance that— (i) has been placed in a natural reservoir in the area of a production licence for storage purposes; or (ii) has been destroyed or dissipated in accordance with sound production practice; or (iii) is to be used in the course of productive operations, or for purposes incidental to productive operations, that the producer carries out in the State and are associated with production of a regulated substance in the State; and (b) geothermal energy that is dissipated before it reaches the point of delivery to the purchaser. (4) A licensee must, by the last day of the month immediately following each month in which a regulated substance or geothermal energy is produced, provide the Minister with a return for the relevant month setting out— (a) the quantity of the regulated substance or energy produced; and (b) the quantity of any regulated substance or energy sold, and the amount realised on sale; and (c) any other relevant information required by the Treasurer after consultation with the Minister. (5) A return must be accompanied by the royalty payable by the licensee in respect of the month to which the return relates. (5a) The Treasurer may, after consultation with the Minister— (a) determine that a requirement of subsection (4) or (5) will not apply to a particular licensee or class of licensee; and (b) impose, by notice to the particular licensee or by notice in the Gazette, such other requirements on the licensee or those licensees as may be appropriate in the circumstances. (5b) The Treasurer may, after consultation with the Minister, by further notice, vary or revoke requirements imposed under subsection (5a), or impose new requirements. (6) The value at the well head of a regulated substance is a value calculated by subtracting from the price (exclusive of any GST component) that could reasonably be realised on sale of the substance to a genuine purchaser at arms length from the producer all reasonable expenses (exclusive of any GST component) reasonably incurred by the producer— (a) in treating processing or refining the substance; and (b) in transporting the substance from the well head to the point of delivery. (7) The value at the well head of geothermal energy is a value calculated by subtracting from the price (exclusive of any GST component) that could reasonably be realised on sale of the energy to a genuine purchaser at arms length from the producer all reasonable expenses (exclusive of any GST component) reasonably incurred by the producer in getting the energy to the point of delivery to the purchaser. (8) The value at the well head of a regulated substance or geothermal energy is to be assessed by the Treasurer after consultation with the Minister. (9) The Treasurer may, after consultation with the Minister, on application by the producer or on the Treasurer's own initiative after consultation with the Minister, review and revise an earlier assessment of the value at the well head of a regulated substance or geothermal energy. (10) The Supreme Court may, on appeal by the producer, vary the Treasurer's assessment. (11) In any other proceedings, the Treasurer's assessment is to be taken as conclusive evidence of the value of a regulated substance or geothermal energy at the well head. (12) The regulations may provide that the whole or a prescribed proportion of a fee of a prescribed class payable by licensees under this Act may be taken to be a reasonable expense for the purposes of subsection (6). (13) The Treasurer may, after consultation with the Minister, reduce or waive royalty payable by a licensee under this section— (a) in respect of a regulated substance or a regulated resource prescribed by the regulations; or (b) in prescribed circumstances. 44—Penalty for late payment (1) If a licensee fails to pay royalty as and when required by or under this Part— (a) the amount in arrears will, unless the Treasurer determines otherwise, be increased by penalty interest at the prescribed rate; and (b) the Treasurer may impose on the licensee a fine of an amount fixed by the Treasurer up to a limit of $1,000 or 10% of the outstanding royalty, whichever is the greater. (2) The Treasurer may, after consultation with the Minister, for any proper reason remit penalty interest or a fine imposed under subsection (1) wholly or in part. 45—Recovery of royalty Royalty (and any penalty interest or fine imposed by the Treasurer under this Part) may be recovered as a debt due to the Crown.