10Triggering the minimum stockholding obligation

10 Triggering the minimum stockholding obligation

(1) The Secretary may, by written notice given to an entity, trigger the minimum stockholding obligation for the entity in relation to an MSO product if: (a) the entity is a regulated entity; and (b) in a period prescribed by the rules: (i) the entity undertakes an MSO activity in relation to the product; and (ii) in doing so the entity exceeds the volume prescribed by the rules (in megalitres) for undertaking the activity in relation to the product.

Note: A decision to trigger the obligation is a reviewable decision and reasons and notice of review rights must be given (see sections 72 and 73).

(2) The notice must specify the quantity (in megalitres) of stocks of the product the entity must hold on the obligation days for which the notice is in force.

Note: A decision to specify a particular quantity of the product is a reviewable decision and reasons and notice of review rights must be given (see sections 72 and 73).

(3) The Secretary must determine the quantity in accordance with the rules.

Note: See also subsection 14(4).

(4) The notice is in force for obligation days that occur in the period: (a) starting on the day specified in the notice as the day the notice comes into force (which must not be earlier than the day the notice is given); and (b) ending on the day before another notice given to the entity in relation to the product under section 15 comes into force.

Note: A notice under this section ceases to be in force during any temporary reduction period for the entity in relation to the product, and comes back into force when that period ends (see subsections 18(3) and (4)).

11 Ceasing to be subject to minimum stockholding obligation

Main case (1) An entity ceases to be subject to the minimum stockholding obligation in relation to an MSO product if the Secretary is satisfied under subsection 32(1) that the entity has permanently or indefinitely ceased undertaking all MSO activities in relation to the product. Obligation assumed (2) An entity ceases to be subject to the minimum stockholding obligation in relation to an MSO product if a determination is made under section 37 that another entity has assumed the entity’s minimum stockholding obligation in relation to the product.

12 Exemptions

Despite section 9, an entity is not subject to the minimum stockholding obligation in relation to an MSO product if, under the rules, the entity is exempt in relation to the product.