16ATemporary reduction by Minister

16A Temporary reduction by Minister

(1) The Minister may, by legislative instrument, reduce the quantity of stocks of an MSO product that an entity must hold on specified obligation days.

Note: For specification by class, see subsection 13(3) of the Legislation Act 2003.

(2) However, the Minister may do so only if the Minister is satisfied that the reduction is necessary: (a) to meet Australia’s obligations under the International Energy Agreement; or (b) to prevent or alleviate a disruption or likely disruption to supply of the product. (3) The reduction must not be greater, or apply to more obligation days, than is reasonably necessary: (a) to meet those obligations; or (b) to prevent or alleviate the disruption or likely disruption. (3A) In addition, the period of the reduction must not exceed 6 months. However, the Minister may make reductions under this section for the MSO product for the entity for additional periods not exceeding 6 months each. Interaction with section 18 reductions (4) If the reduction applies on an obligation day that falls within a temporary reduction period under section 18 for the entity and the product, the reduction for the entity for the day is the greater of the following: (a) the reduction under this section; (b) the reduction under section 18. Working with Energy Ministers (5) Before making a reduction under this section, the Minister must inform the Energy Ministers (within the meaning of the Liquid Fuel Emergency Act 1984) of the proposed reduction. (6) The Minister must consider making such a reduction if requested by one of those Energy Ministers to do so.

17 Application to temporarily reduce quantity of stocks of MSO product

(1) An entity that is subject to the minimum stockholding obligation in relation to an MSO product may apply in writing to the Secretary to temporarily reduce the quantity of stocks of the product the entity must hold on obligation days. (2) The application must: (a) specify the reduced quantity being applied for; and (b) set out the entity’s reasons for applying for the reduced quantity; and (c) meet any other requirements prescribed by the rules.

18 Secretary’s decision on temporary reduction application

(1) If an entity makes an application in accordance with section 17, and gives any further information as required under section 78, the Secretary must decide whether to:

(a) grant the application by reducing the quantity as applied for or by less than applied for; or

(b) refuse the application.

(2) If the Secretary decides to grant the application, the Secretary must, by written notice given to the entity, specify the reduced quantity of stocks of the product the entity must hold on the obligation days for which the notice is in force.